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If IV '41i , n + nv! rc . p ^» � Rt. it aav ^(4 � k M1 ILI APy�y WAar, tiry. ° tt If ,y �✓^° wT iS �: b. + 1 a'tl A flyy ° v ;i , zi + " `w� A " nF 0 A da +Awl J 8 ai. t rlF + r pn rFJ�,'d J� y t dYd {e ar 'ki to N 4 i rn to x4av,^,v= v tv M rl � kk %,t "•4 )'�' M"ir I i"Ify w � }}v^, .M1vey ! "' "' b �, nh a 1 W 1 '�, yy t d a' tw wve n w nA'" a r It! t 4d vvl kN^, o , a ;d,{ { a tr . x . �. n�+ I t o d 1 , 3 7r 4 t + aa' { v " „ t • .3 ^Ari •t t h " y The Indian River County Recreation Department provides, operates and publicizes recreational programs and facilities for County residents and visitors of all ages and backgrounds. During the 2002 - 2003 fiocal year, the North County Aquatic Center began operations . The $ 5 . 8 million state of the art facility, located in Sebastian , features a 968 , 000 gallon competition pool with eight full lanes, a heated diving well with one and three meter diving boards, a heated zero depth recreational activity pool , two water sl ides and three interactive play features. The North County Aquatic Center contains 45 , 000 square feet of surrounding deck space to accommodate the public, spectators and competitive events for public recreational swimming , water play, competitive swim meets, rentals and special events. The North County Aquatic Center was funded by the local option one - cent sales tax. The North County Aquatic Center now complements the Gifford Aquatic Center. Located in the Southern half of Indian River County adjacent to the Gifford Youth Activities Center, the Gifford Aquatic Center was completed and opened to the public in August 2001 . This project was the result of a comprehensive needs assessment conducted by Indian River Community College . The $ 1 . 8 million aquatic center was funded by public tax dollars, private groups and individual donors and features a 180, 000 gallon heated , six lane, zero entry seventy five by one hundred ten foot pool . The entry is graded for wheelchair accessibility with a depth ranging from zero to five feet . An interactive children 'o water playground with water jets, foam geyser, shower tunnel and water drop features provide fun and enjoyment for almost 100 children . Fossils from Morocco, some of them 380 million years old , are imbedded in the building 's walls. Twelve sculptures of inspiring human forms, ranging in size from six to twenty- eight feet tall decorate the grounds. Indian River County served as host for the annual Florida High School Athletic Association ( F5HAA ) Swimming and Diving State Finals at the North County Aquatic Center. This is the premier event in high school swimming in the state of Florida . The swim meet consisted of 293 teams with over 2500 athletes and 4000 volunteers. Almost 4500 spectators attended the meet, which generated nearly $1 million in economic impact for Indian River County. Dy hooting thio event, the North County Aquatic Center has established itself ao a leading competition and practice facility statewide . Both the North County Aquatic Center and Gifford Aquatic Center provide a wide variety of programs for both children and adults alike . Parent Tot Swim io an excellent way for parents to help their children learn the fundamentals of swimming by increasing their flexibility, coordination and strength through basic swimming skills. Pre - ochool and youth swim lessons are offered with different levels of training baoed upon individual water experience . Aquanautics offers fun and fitness in the water. The claws io designed to strengthen and firm muscles, improve cardio - reopiratory function , balance and coordination all while Oct to music . The Junior Lifeguard Program is offered to young adults ages 12 - 17. It teaches safety in and around the water along with the duties and responsibilities of a lifeguard by building self- confidence and preparing interested youth for work as a lifeguard . INDIAN RIVER COUNTY, FLORIDA ' COMPREHENSIVE ANNUAL FINANCIAL REPORT ' FOR THE FISCAL YEAR ENDED SEPTEMBER 30 , 2003 1 Jeffrey K . Barton ' Clerk of the Circuit Court ' Prepared By : Clerk of the Circuit Court Finance Department ' Edwin M . Fry, Jr. Finance Director ' Q o ^ 200 I T Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT IT Fiscal Year Ended September 30 , 2003 Board of County Commissioners Kenneth R . Macht Fran B . Adams Chairman Thomas S . Lowther Caroline D . Ginn Arthur R. Neuberger Vice- Chairman Elected Constitutional Officers <, Jeffrey K. Barton David C . Nolte Clerk of the Circuit Court Property Appraiser Kay Clem Roy Raymond Supervisor of Elections Sheriff 1 Charles W. Sembler Tax Collector County Management James E . Chandler William G Collins II County Administrator County Attorney Joseph Baird Kimberly Massung Assistant County Administrator Executive Aide to BCC James W. Davis Robert M . Keating Director of Public Works Director of Community Development Erik Olson Thomas W. Frame Director of Utilities Director of General Services Cliff Crawford John W. King Director of Recreation Director of Emergency Services James E . Carnicella Robert J . Komarinetz Director of Human Resources Director of Golf Course ' Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT ' TABLE OF CONTENTS Fiscal Year Ended September 30 , 2003 Page ' Number INTRODUCTORY SECTION LETTEROF TRANSMITTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i ORGANIZATIONCHART . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE INFINANCIAL REPORTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii FINANCIAL SECTION ' REPORT OF INDEPENDENT ACCOUNTANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ' MANAGEMENT ' S DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 BASIC FINANCIAL STATEMENTS : Government-wide Financial Statements : ' Statement of Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Statementof Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Fund Financial Statements : Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 00 . . . . . . . . . 0 . . . . 1 18 Statement of Revenues , Expenditures , and Changes in Fund Balances - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ' Reconciliation of the Statement of Revenues , Expenditures , and Changes in Fund Balances of Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . 22 Statement of Revenues , Expenditures , and Changes in Fund Balances - 1 Budget and Actual - General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Statement of Revenues , Expenditures, and Changes in Fund Balances - Budget and Actual - Road Improvement Fees Fund24 Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual - Secondary Roads Construction Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 ' Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual -Transportation Fund26 Statement of Revenues , Expenditures , and Changes in Fund Balances - ' Budget and Actual - Emergency Services District Fund27 Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual - Land Acquisition Fund28 ' Statement of Net Assets - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09 . 40 . 29 Statement of Revenues , Expenses , and Changes in Fund Net Assets - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ' Statement of Cash Flows - Proprietary Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Statement of Fiduciary Net Assets - Agency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 ' Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30 , 2003 - Page Number Combining and Individual Fund Statements and Schedules : Combining Balance Sheet - Nonmajor Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds . . , , , , , , , , , " , , . . . . . . . . . . 0 . . . . . . . . . . . . . . . . 1 104 Budgetary Comparison Schedules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 - Combining Statement of Net Assets - Nonmajor Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . 11 . 0 . . . . . . 144 4 Combining Statement of Revenues , Expenses , and Changes in Fund Net Assets - Nonmajor Enterprise Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 146 Combining Statement of Net Assets - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Combining Statement of Revenues , Expenses, and Changes in Fund Net Assets - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 Combining Statement of Cash Flows - Internal Service Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151 Statement of Changes in Assets and Liabilities - Agency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 Capital Assets Used in the Operation of Governmental Activities : Comparative Schedules By Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Schedule by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Schedule of Changes by Function and Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Indian River County, Florida ' COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED ' Fiscal Year Ended September 30 , 2003 Page Number STATISTICAL SECTION ' TABLE 1 General Government Expenditures by Function - Last Ten Fiscal Years . . . . . . . . . . . . . . . . 160 TABLE 2 General Government Revenues by Source - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . 161 ' TABLE 3 Property Tax Levies and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162 TABLE 4 Just and Taxable Value of Real and Personal Property - LastTen Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163 ' TABLE 5 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 TABLE 6 Special Assessment Billings and Collections - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . 165 TABLE 7 Ratio of Net General Bonded Debt to Taxable Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 ' TABLE 8 Computation of Direct and Overlapping Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167 TABLE 9 Ratio of Annual Debt Service Expenditures for General Bonded ' Debt to Total General Governmental Expenditures - Last Ten Fiscal Years . . . . . . . . . . . . 168 TABLE 10 Department of Utility Services- Summary of Historical ' Revenue of the System - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 ' TABLE 11 Revenue Bond Coverage - Golf Course - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 TABLE 12 Revenue Bond Coverage - Indian River County Housing Authority - ' Component Unit - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171 TABLE 13 Demographic Statistics - Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 TABLE 14 Property Value , Construction and Bank Deposits - Last Ten Fiscal Years . . . . . . . . . . . . . . . 173 ' TABLE 15 Principal Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 TABLE 16 Schedule of Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175 ' TABLE 17 Miscellaneous Statistical Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 I Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT 1 TABLE OF CONTENTS - CONTINUED Fiscal Year Ended September 30 , 2003 Page Number TABLE 18 Department of Utility Services- Water and Sewer Customers-Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181 TABLE 19 Department of Utility Services- High Volume Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 TABLE 20 Department of Utility Services - Historical Rate Structure- Last Eight Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 F' COMPLIANCE SECTION Federal and State Grants : Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditingStandards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 Report on Compliance and on Internal Control Over Compliance Applicable to Each Major Federal Program and State Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 ,. Schedule of Expenditures of Federal Awards and State Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 a Notes to Schedule of Expenditures of Federal Awards and State Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192 Schedule of Findings and Questioned Costs - Federal Awards and States Projects " , ' , " " , ' , , " " , 193 Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS - CONTINUED ' Fiscal Year Ended September 30 , 2003 ' AUDITOR GENERAL REPORTS SECTION Page ' Number COUNTY MANAGEMENT COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195 ' BOARD OF COUNTY COMMISSIONERS Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 ' Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 ' Report on Compliance and on Internal Control over Financial Reporting Baseed on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 ' Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 ' Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 CLERK OF THE CIRCUIT COURT Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261 Report on Compliance and on Internal Control over Financial ' Reporting Based on an Audit of Financial Statements Performed in Accordance with ( Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . see . . . . . a . . . . . . . . . . . . 269 ' Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270 Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 ' PROPERTY APPRAISER ' Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277 ' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in ' Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 :t Indian River County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS -CONTINUED Fiscal Year Ended September 30 , 2003 i Page Number SHERIFF Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 SUPERVISOR OF ELECTIONS Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310 Response to Management Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312 TAX COLLECTOR Report of Independent Accountants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314 Special Purpose Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315 Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with (Government Auditing Standards) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323 ManagementComments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 r L f w,( { Wl �},.� •`y,� ,� ?J y #,.'tel � y� +. *F 'x' e+,< ; �2 s s :: .yam uu..=.,+-ne� a✓�3 x a a.?.ozg� {.�3rai��.e. .aa x �i i9 J� ua,�.,,..�-e r � e ,+�.,.y... F . � `7 � � . XII�t"YM �4.�z ,x{ # s• S � i 'S �"a x. r �-r ��Y'yY. . a* r Ate$ RIVER JEFFREY K . BARTON ' Clerk of Circuit Court z K P. O . Box 1028 # # ' Vero Beach , Florida 32961 - 1028 OR10�` Telephone: ( 772 ) 770-5185 ' March 11 , 2004 ' To the Citizens of Indian River County : ' The Comprehensive Annual Financial Report of Indian River County, Florida for the fiscal year ended September 30, 2003 , is respectfully submitted. This report was prepared by the Finance Department under the ' supervision ofthe Clerk ofthe Circuit Court. Responsibility for both the accuracy ofthe presented data and the completeness and fairness ofthe presentation, including all disclosures , rests with the Finance Department. This report contains four major sections : the Introductory, the Financial, the Statistical and the Compliance Sections . The Introductory Section is designed to give the reader ofthe financial report some basic background information about the County. The Financial Section is divided into ( 1 ) management' s discussion & analysis and the basic financial statements , and (2) the combining and individual fund financial statements . The Statistical Section reflects social and economic data, financial trends and the fiscal capacity of Indian River County. The Compliance Section includes a schedule ofexpenditures offederal awards and state projects as required by the Florida Single Audit Act, the U . S . Single Audit Act of 1984, the U. S . Single Audit Act Amendments of 1996 and the U. S . Office of Management and Budget. The County has prepared the financial statements to meet the requirements of Governmental Accounting Standards Board Statement No . 34 , Basic Financial Statements - and Management 's Discussion and ' Analysis for State and Local Governments (GASB 34) . These statements are significantly different from the financial statements prepared by the County for previous fiscal years . GASB 34 establishes a new reporting model that the County has reported in four parts : ' 1 ) Management' s Discussion and Analysis - a narrative reportproviding significant information about the County and how the County ' s financial position has changed from September 30 , 2002, to September 30 , 2003 , and ' the reasons for the change ; 2) Government-wide Financial Statements - financial reports on the governmental and business-type assets , liabilities, expenses and revenues ofthe County; ' 3) Fund Financial Statements - financial reports on the major individual governmental and proprietary funds of the County, and budgetary comparisons for the County' s general fund and major special revenue funds ; and 4) Notes to the Financial Statements . Indian River County is a Non-Charter County established underthe Constitution and the Laws ofthe State of + Florida. This Comprehensive Annual Financial Report (CAFR) includes the funds ofthe primary government (the Board of County Commissioners , the Clerk ofthe Circuit Court, the Property Appraiser, the Sheriff, the Supervisor ofElections and the Tax Collector) and the following component units : The Emergency Services District M The Indian River County Housing Authority The Solid Waste Disposal District These entities 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. - y ECONOMIC CONDITION AND OUTLOOK Indian River County, established on June 29, 1925 , by an act ofthe Florida Legislature, is onthe central Atlantic coast ofFlorida, approximately 100 miles southeast of Orlando and 135 miles north ofMiami . The County is bordered by Brevard County to the north, St. Lucie County to the south, and Osceola and Okeechobee Counties on the west. There are approximately 100 miles of waterfront land in the County, including 23 miles of Atlantic beaches . The City of Vero Beach is the seat of County government, as well as the largest municipality in the County. Indian River County is the winter home for thousands ofvisitors, spring training grounds ofthe Los Angeles Dodgers , and home ofthe Disney Resort on Orchid Island . The functional (seasonal plus resident) population reaches approximately 15 0, 000. Like the State of Florida, the County has experienced significant population growth. Retail trade and the service industries remain the largest sectors of employment in the County. Other maj or sources of j obs are found in government and agriculture . Indian River citrus is a well recognized name and product throughout the United States and internationally. 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 Countyresidents and visitors . Property tax values increased 13 . 7 % and the taxable value compared to the total j ust value of property was 74 . 9 % . Construction activity in 2003 was strong with 2,854 permits being issued fornew construction with avalue of$514. 87 million. This was an increase of 18 . 7% from last year and sets a new record for annual construction value . Just slightly less than 18% ofthe total County acreage is dedicated to citrus production. The County is a maj or producer of citrus in the state and produced 14 . 8 million boxes of citrus in 2003 compared to last year' s production of 19 . 1 million boxes . Total employment increased 9 . 3 % from 43 , 766 to 47 , 841 . However, as did the national annual average unemployment rate, the annual average unemployment rate in the County increased, rising from 7 . 7% to 8 . 2% . Population growth, which was averaging about 2 . 15% per year in the 1990s, was 1 . 8 % in 2003 . Indian River County ' s estimated population for 2003 was 120,271 . Construction activity in the County continued to exhibit strength with a number ofproj ects being completed during the past year. There appears to be continuing strength going forward with many projects in the planning stages or currently underway, ii ' In the north part of the county, some of the projects underway include : *The 14 , 000 square foot Lakeside Fellowship Baptist Church east of 6611' Avenue and south of 81 s� ' Street; • Indian River Federal Credit Union, a new 2 , 752 square foot building on North US Highway 1 in Sebastian; ' •A new Eckerd Drug Store at the corner of US Highway 1 and County Road 5120 ; •A new Eckerd Drug Store at the intersection of US Highway 1 and Roseland Road; *Three 6 unit buildings in Plantation House/Sea Oaks on Orchid Island ; ' *Construction of six-plex buildings and single family homes in The Bermuda Club on A 1 A south of Sea Oaks and north of Disney; and *Grand Oak Estates, a 15 lot residential subdivision west of Old Dixie Highway and south of Roseland Road . ' Completed projects include : • Wabasso Convenience Store , a 3 ,000 square foot convenience store/ food court at the intersection of US 1 and 86th Street with a car wash and 12 fueling stations ; ' •The Jungle Trail/Pelican Island Wildlife Refuge conservation education facility including three bath- room facilities, five shelters and 2 kiosks ; •Plat approval for The Bermuda Club consisting of 90 single-family lots and a 78 unit multifamily area ' on A 1 A south of Sea Oaks and north of Disney; *The Marsh Island Planned Development with 27 single-family lots, 8 duplex lots, and a fitness center on the Wabasso Causeway; ' •Phase III of the Old Orchid Development with 30 single-family lots on County Road 510 ; *The Seasons Community, a 100 lot single-family subdivision at the intersection of County Road 510 and Jungle Trail ; and ' *The North County soccer complex expansion to provide bathrooms and a concession stand. ' In the central part of the county, some of the projects underway include : • Gifford Health Center, a 6,385 square foot office with a 4,257 square foot medical clinic ; * 3 6th Street Medical Building. a 22,000 square foot medical/general office building; ' * Southern Plumbing/Contractors Trade Building, a 5 ,000 square foot warehouse • Wilson Contractor Trades , a 4, 800 square foot contractor trades building at 6598 Old Dixie High- way; •Alcohope of the Treasure Coast, a group home and alcohol rehab facility at 3395 11 th Court; * St . John 's of the Cross Catholic Church, a 1 ,200 seat church and 12 , 000 square foot multipurpose building on 26th Street; * St Mark 's Church of Indian River County, a 4 , 990 square foot church and a 3 ,280 square foot fellowship hall; *Lakeside Apartments, a 153 multifamilial complex with a clubhouse and storage building on 58th ' Avenue; *Laporte Multi-Family, 34 triplexes on 85th Court; ' *Pinnacle Grove, 110 multifamily buildings containing 234 units and a clubhouse on 45th Street; •Regency Park, a 250 multifamily complex with 40 duplex units on 41 st Street *Walker Woods , a 208 unit multifamily complex on 26th Street; * Grand Harbor - The Falls , a 36 single family homes , 18 duplexes and a clubhouse in Grand Harbor; ' iii * Grand Harbor - The Reserve, a 100 lot single family homes in Grand Harbor; •Park Lane Estates , a 44 lot subdivision on 65th Street ; • Riverwind, 146 single family homes subdivision and clubhouse at the intersection of Indian River Boulevard and 45th Street; and * Trillium, a 217 residential unit subdivision on 33rd Street. Completed projects include : • Syngenta Crop Protection constructed a 2 , 800 square foot pole barn and added 22 , 820 square feet to the Agriculture Research Facility on 58thAvenue ; *Eagle Trace, a 62 lot single-family subdivision east of 581 Avenue ; • Woodlake Commons , a 85 , 600 square foot retail/office building at 3929 US l ; *BCM Storage, a 92, 800 square foot mini- storage facility at 3890 691 Street; • Walker Woods , a 208 unit apartment complex on 261 Street; •The Cascades of Vero, an 80 lot single-family subdivision between 651' and 690' Streets ; and *Pine Ridge Club, a 42 lot single-family subdivision at the intersection of 58' Avenue and 571 Street. In the south part of the county, some of the projects underway include : •Mazzarella Auto Repair, a 4, 500 square foot auto repair business at 40 Old Dixie Highway: •Light Source Business Systems, a 3 ,250 square foot expansion at 210 Old Dixie Highway; *Paragon, a 16, 780 square foot and 11 , 000 square foot building at 912016th Place ; *Christian Outreach Retreat, a retreat center, maintenance building, office, lodge, cabins, chapel, din- ing hall and recreation hall at 602512th Street; a • Cradles to Crayons, a 4, 791 square foot addition to the existing facility at 1285 6th Avenue ; *Moorings Club, administrative offices and social services center at 100 Harbor Drive ; * Christi 's Fitness, a 32,000 square foot fitness center at 1250 Old Dixie Highway; - * Old South Commercial Park , a 6,200 square foot warehouse building at 430 3rd Lane SW; • Sandcastle , an 86 unit mini storage facility at 5th Street SW *East Gate Villas, 27 multifamily units on 13th Place East of 6th Avenue; •The Fountainhead, 89 multifamily units at 750 6thAvenue ; •The Palms of Vero, a 259 unit apartment complex at the intersection of 12th Street and Indian River Boulevard; *Citrus Springs Village, Phases D, E and F are now underway. When completed, there will be 477 units on 191 acres ; *Pointe West Central Village, 30 duplex buildings and 57 single family lots in Phase 11, 41 single family lots and 32 duplexes in Phase III ; •Ansley Park, a 90 unit single family subdivision west of 27th Avenue SW between 9th Street SW and 13th Street SW; *High Hawk of Vero, 61 single family lots at the SE corner of 6th Avenue SW and 17th Lane SW; *Majestic Oaks, a 156 lot single family subdivision at 1170 27th Avenue; *The Oaks of Vero, 148 single family lots on 70 acres on the Northeast corner of 12th Street and 58th Avenue; 9O1d Savannah Subdivision, a 51 lot single family subdivision West of 46th Avenue on the North side of 16th Street; and Waterford Lakes, a 265 single-family lot subdivision at the intersection of 121 Street and 161 Avenue . Completed projects include : *Berlin Retail, a 12 ,960 square foot retail and office building at 676 US Highway 1 ; iv ' *Kenwood Village, 91 single family lots on 37 . 8 acres and 109 single family lots on 43 . 85 acres at 3725 5th Street SW; ' *Pointe West North Village , a 25 single-family lot subdivision between 161 Street and SR 60 ; * Legend Lakes , 163 single family lots on 79 acres on Oslo Road between 43rd Avenue and 58th Avenue ; •The 3 ,300 square foot Dr. Stewart Animal Clinic at 890 Old Dixie Highway; •Four 7, 500 square foot contractor trades buildings at the intersection of 181Avenue SW and Oslo Road; • The Vero Mall redevelopment, which used the old mall site to provide retail facilities including a grocery store and numerous retail outlets ; *Rose Commercial Plaza, a 10, 000 square foot contractor trades building at 1452 Old Dixie High- way; *Village Walk South, a 102 unit multifamily subdivision at 620 61 Avenue ; ' • Citrus Springs Village , a multi-phase project with 54 lots on 29 acres east of 58th north of 511 Street SW and 216 lots on 75 acres on 581 Avenue between 91 Street SW and the South Relief Canal ; *The Grand Royale, a 72 multifamily unit complex at 100 Vista Royale Blvd; ' *Carriage Lake, a 64 single-family lot subdivision at the intersection of Kings Highway and &I Street; and * Waters Edge , a 131 unit subdivision at the intersection of 1 " Street SW and 32°1 Court SW. MAJOR INITIATIVES Indian River County continued with its overall program of improving the management ofthe County and followed through onmany ofthe activities identified in the previous year. Major accomplishments for the 2002-2003 fiscal year (FY 2003 ) listed below demonstrate what taxpayer dollars were used for in the prior year and sets a framework for the organization ' s goals for the 2003 -2004 fiscal year (FY 2004) . ' Fairgrounds Agricultural Arena The County continued the multi-year program of improvements to the fairgrounds and the arena. In FY 2003 , a Florida Department ofAgriculture and Consumer Services Grant was used to construct a second exhibition building to the south ofthe current exhibition building for $363 ,908 . North County Regional Park Construction of the North County Regional Park began in FY 2002 . The first phase of the Park was com- pleted in FY 2003 . A zero entry activity pool of 7,000 square feet with water activities and water slides for the children and an Olympic stretch pool of 217 feet in length and 75 feet in width, holding 1 ,000 ,000 gallons of water were opened . A total of $ 5 , 965 , 741 had been spent by the end of the fiscal year. Phase II of the park, which will includes two baseball/softball fields, a playground, and a walking/nature trail, will be started during the FY 2004 . ' Stormwater Improvements In FY 2003 , the County spent $638 ,066 for the various stormwater projects throughout the County. The goal ofthe stormwater projects is to reduce contaminated water runoff to the Indian River lagoon. Construction of retention ponds and drainage improvements will significantly reduce the volume of contaminated water flowing ' directly into the Lagoon. ' v The Roseland Area Stormwater Improvement Project will provide flood control and stormwater quality treat- ment for a 211 -acre section of the Roseland community. The project includes construction of two stormwater detention ponds, installation of enlarged culverts , and construction of stormwater conveyance . Construction began in FY 2003 . A grant in the amount of $ 185 , 000 has been awarded by the St. Johns River Water Management District (SJRWMD) . The Vero Lake Estates Stormwater Project covers an area of 2 ,410 acres and 10 , 000 platted lots . The subdivision does not have adequate stormwater treatment and drainage . The County plans to construct and convert borrow pits into retention facilities to hold rerouted stormwater for treatmentprior to release into the Indian River Lagoon . This project has received funding from SJRWMD in the amount of $250, 000 and the Environmental Protection Agency in the amount of$626,808 . Phase II and Phase III, which are in the planning stage, will be stormwater management systems that tie into Phase 1. The East Gifford Area Stormwater Project proposes to construct a 5 -acre stormwater detention pond and swales at the northwest corner of 415' Street and the railroad tracks to provide flood protection, erosion control and promote health benefits by reducing the amount of stagnant surface water in the area. This project will reduce flooding in a low-income area where some of the homes have floor elevations below flood levels . The project has been designed and permits received. Construction of the improvements started in FY 2003 . Grant funding in the amount of $ 100,000 has been received from the SJRWMD . -g t The East Indian River County Stormwater Management Plan addresses stormwater runoff from over 50,000 acres of land, including the urban center of Vero Beach. This watershed discharges a tremendous amount of pollutants directly into a 15 mile-long area of the Indian River Lagoon. The plan is to reduce the pollution by developing an integrated stormwater treatment, storage, and recharge/reuse system. A master drainage plan is in development and the project will be subdivided into three different areas . As the plan is implemented, the project will probably be further subdivided. Grant funding in the amount of $ 120,000 has been committed by F„ the SJRWMD . d Citrus Best Manaizement Practices In FY 2002 , The County entered into a $50, 000 cost share agreement with the St. Johns River Water Man- agement District to implement citrus best management practices (BMPs) in the County to reduce polluted water discharges . The County disbursed $ 102,000 in FY 2003 to reimburse citrus property owners 75 % of the cost of BMPs implemented by the owners . The County was also able to obtain a $ 750,000 grant, with $250 , 000 paid to the County each year for three years , from the Florida Department of Agriculture and Consumer Services for BMWs . This is the second year of the grant. The Indian River Soil and Water Conser- vation District, in cooperation with the United States Department ofAgriculture Natural Resource Conserva- tion Service, is monitoring the BMPs implementation program. Environmental Lands In FY 2003 , the County used the balance ofthe Environmentally Sensitive Land Acquisition Bonds , Series 2001 , grant funds from the Florida Communities Trust, grant funds from the City of Vero Beach and grant funds from the Town of Indian River Shores to purchase the Lost Tree Islands ; a group of environmentally significant islands in the Indian River Lagoon. A total of $ 15 , 324 , 003 was spent on the Lost Tree Islands ; of that amount $5 ,291 , 752 was from grant proceeds . Another $ 1 , 609,956 was spent to acquire the Hallstrom Farmstead, a 93 plus acre site . Of that amount, $ 1 ,232, 373 was derived from grant funds . vi ' Pelican Island National Wildlife Refuge The County completed improvements on two sites in the Pelican Island National Wildlife Refuge . Improve- ments included a paved parking area, rest rooms , kiosks, drainage, landscaping, and installation of informa- tional signs . The county was recently awarded an additional $ 1 , 000 , 000 grant from The Department of Environmental Protection to continue with Uplands Restoration and Tidal Marsh Restoration of the Pelican ' Island National Wildlife Refuge . Beach Restoration ' The County developed an overall beach restoration plan in FY 2002 . The plan divides the beach restoration project into four phases . The first phase, which will restore 2 . 5 miles of beach from the Sebastian Inlet on the northern end of the County to just south of the Ambersand Beach access , was designed and permitted during the FY 2002 . In FY 2003 , the county spent $9 , 032,698 to rebuild the 2 . 5 miles of beach. ' Sebastian Water Expansion On going expansion of the Sebastian Water System continues on Phase IIID and IIIE . To date, $ 1 ,993 , 837 has been spent on these phases . When completed, these Phases will provide water service to another 1 ,433 ' lots at an estimated cost of $ 3 . 2 million. With the completion of Phase IIID and IIIE, the County will have installed approximately 109 .4 miles of water lines in Sebastian Highlands providing water service to approxi- mately 8 ,000 lots . Kings Hi hwaY The majority of work was completed on Kings Highway during FY 2003 . The two lane road has been ex- panded to four lanes from 12th Street to Oslo Road. The five east/west bridges over the canal on the east side of Kings Highway were replaced and traffic signals were installed at four intersections and at Oslo Road . Through September 30 , 2003 , the County has spent $ 12 . 5 million dollars . Dodgertown Springy Facility In FY 2003 , the County completed construction of The Los Angeles Dodgers Training Facility for $4,993 ,625 . ' We have an outstanding contract with The Los Angeles Dodgers to reimburse them for maintenance of the grounds and facilities located on 26th Street in Vero Beach. Public Works Complex In FY 1998 , the County began working with Indian River County School Board and The Indian River County Sheriff's Department to develop a joint public works facility in order to centralize a fueling compound and bus storage area. To date $5 , 104,499 has been spent on the facility. The County began using the facility in March 2004 . The School Board and Sheriff's Department will begin using the facility during FY 2004 . Expansion of Coppjy Coup , Jail Indian River County needs to expand the jail . On January 9, 2003 The Board purchased approximately 26 acres of land for $ 906 , 360 . Carter Goble Associates Inc . has been hired as consultants on the project to provide the needs assessment study of the jail in order to review overcrowding issues and to project what needs to be included in any future design for jail expansion. ' vii Homeless Assistance Services The County received a number of grants from the U . S . Housing and Urban Development Department , A Family Options Transitional Housing Program Grant in the amount of $293 , 898 will be used for renovations, rehabilitations, and support services at the Indian River Homeless Services Council 's shelter. The local re- quired match of $243 ,031 will partially be provided from the County 's SHIP funds . Other grants received by the County for homeless services were a Shelter Plus Care Grant in the amount of $477, 708 for tenant-based rental assistance, a Youth Crisis Center Grant in the amount of $210, 191 to provide supportive housing assis- tance for homeless families with children and a Homeless Management Information Systems Grant in the amount of$ 108 , 530 to create a point of service homeless management information system . I State Housing Improvements Program The State Housing Improvements Program (SHIP) is a vital source of funds used by the County to provide financial assistance to County residents who want to become home owners or make improvements to p their homes . Using SHIP funds, the County provided 42 loans totaling $ 1 , 195 , 168 for down payment/closing costs assistance, rehabilitation loan assistance and impact fee loan assistance . Of the 42 loans, 21 were provided to very low income households , 19 to low income households and 2 to moderate income households . Humane Society During FY 2003 , the Humane Society completed a new facility on 77th Street. The County needed the old Humane Society site and agreed to pave Seventy-seventh Street between 58th Avenue and 66thAvenue. The County completed the paving project in order to have a paved street leading to the new facility. Mass Transit Services The County has an agreement with the Council on Aging to provide mass transit services to County residents . During the FY 2003 , a Federal Transportation Authority Grant in the amount $ 1 , 121 , 748 , and a Florida Department of Transportation Grant in the amount of $335 ,000 were provided to the Council on Aging. The ' Council used these funds to operate their fleet of 24 vehicles to provide over 195 ,000 boardings to County residents for transport between the Gifford area, the central beach area, the central Vero area, Vero Beach Highlands, Sebastian and the State Road 60 corridor. Five days a week eight routes are serviced. Four routes are serviced on Saturdays . Other Projects A $ 600, 778 Florida Department of Transportation Grant was awarded to replace a low-level bridge at 26th Street over Range Line Canal (74th Ave .) . An additional $223 ,000 is being used to repair bridges at 5th St. SW over the 43rd Ave . ditch, Old Dixie Highway over the south relief canal and 43rd St. over the south relief canal . A Sheriff's Office evidence room addition was completed for $ 156,924 . Budget Process The Constitutional Officers submit, at various times, to the Board and to certain divisions within th'e Depart- ment 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 . viii Constitutional Officers, all departments controlled by the Board of County Commissioners, and outside State and local agencies submit their proposed budgets to the Office ofManagement and Budget for assistance, review and compilation. The County Administrator then reviews all County department, state agencies and nonprofit organizations budgets , and makes his budget recommendation to the Board of County Commissioners on or before July 15 of each year. The tentative budget includes proposed appropriations and the means of financing ' them. ' During September, public hearings are held pursuant to Section 200 . 065 , Florida Statutes, in order for the Board to receive public input on the tentative budget. At the end ofthe last public hearing, the Board enacts ordinances to legally adopt at the fund level the budgets for all governmental fund types . The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. Budgets for Enterprise and Internal Service funds are adopted on a basis consistent with generally accepted accounting principles . Computerized integrated budget reports are used for management control purposes throughout the year. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as the total appropriations of a fund are not exceeded . Board approval to amend the budget is required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund . Appropriations for the County lapse at the close ofthe fiscal year. Cash Management 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 . Surplus funds were invested in direct U . S . government obligations , U . S . agency obligations , the Florida Local Government Surplus Funds Trust Fund and the Florida Local Government Investment Trust Fund . During FY 2003 , County investments had yields ranging from 1 . 18 % to 7 . 50 % . The average yield of the portfolio as of September 30 , 2003 was 2 . 66 % . ' FINANCIAL INFORMATION Readers ofthis report are encouraged to read Management' s Discussion and Analysis (MD&A) . The MD&A provides basic financial information about the County and an overview of the County ' s activities . The government-wide financial statements , consisting of a statement of net assets and a statement of activities , provide a comprehensive financial picture ofthe County, split between governmental activities and business-type activities . These statements are prepared using the economic resources measurement focus and the accrual basis of accounting, where all assets, liabilities, revenues, and expenses ofthe County are reported. The fund financial statements provide information concerning the County' s funds and are prepared from the County' s accounting records . The County ' s accounting records for general governmental operations are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded ' when the services or goods are received and the liabilities are incurred . Accounting records for the County ' s proprietary funds are maintained on the accrual basis . The County operates on a fiscal year (FY) of October 1 to September 30 . iix Internal Controls Internal accounting controls for the County are designed to provide reasonable , but not absolute , assurance regarding the safeguarding ofassets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets . The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgements by management. OTHER INFORMATION Section 11 .45 , Florida Statutes, requires an annual audit ofall Countyagencies . The g 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 ofthe County. This requirement has been complied with, and the unqualified opinion ofthe auditors has been included in 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 . A comprehensive annual financial report ofthis nature could not have been prepared on a timely basis without the dedicated efforts of all staff members concerned . 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 dedicated support in planning and conducting the financial operations of the County in a responsible and progressive manner. (Zi JeffreyK . Barton Clerk ofthe Circuit Court JKB/ms X INDIAN RIVER COUNTY, FLORIDA ORGANIZATION CHART L Residents of n River County Clerk of Circuit Sheriff Supervisor of Board of Property Tax ' Court Elections County Appraiser Collector Commissioners Finance Department County Attorney County Administrator B . C . C . Executive Aide Assistant County Administrator Office of Management & Budget Risk --FManagement ' Computer Services General Public Works Utility Emergency Community Services Services Services Development Youth Leisure Services Human Human Guidance ( Golf Course ) Services Recreation ' Resources Libraries Engineering Wastewater Emergency County Treatment Management Planning Purchasing Roads & Water Fire Environmental Bridges Production Services Planning/ L Buildings & Grounds Code Enforcement 1Traffic General & Advanced Life Engineering Support IRCLHAP / Mailroom / ( ALS or EMS) SHIP Switchboard Parks Division Biosolids Program Radiological ' Operations Veterans Emergency Metropolitan Services Fleet Preparedness Planning Management Customer Service Organization ' Probation Emergency Secondary Base Grant Building Road Wastewater Division Telecommunications Construction Collection Animal ' Shooting Control W ater Range Distribution 911 _ _ Soil & Water Coordinator ' Conservation Solid Waste Disposal District Housing Authority / ' Rental Assist . AG Extension ' X1 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) The Government Finance Officers Association ofthe United States and Canada (GFOA) awarded a Certificate ofAchievement for Excellence in Financial Reporting to Indian River County, Florida, for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2001 . The Certificate ofAchievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports . In order to be awarded a Certificate ofAchievement, a government unit must publish an easily readable and efficiently organized CAFR, whose contents conform to program standards . Such CAFR must satisfy both generally accepted accounting principles and applicable legal requirements . A Certificate ofAchievement is valid for a period ofone year only. Indian River County has received a Certificate ofAchievement for the last twenty fiscal years (fiscal years ended 1983 -2002) . We believe our current report continues to conform to the Certificate ofAchievement program requirements, and we are submitting it to the GFOA . Note : In addition to being awarded the Certificate ofAchievement, Indian River County has also been awarded the Distinguished Budget Presentation Award for the last twelve fiscal years (fiscal years ended 1992 - 2003 ) . xii Certificate of 1 . Achievement for Excellence in Financial 1 Reporting Presented to Indian River County , y Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30 , 2002 ' 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 . ' AGE OFFiC of Tx Es,� = UM7C0 STATES y W SEI N `""PA"COMPATION President r SEAL ap\S Executive Director ' xiii ' NNan`«:!vrwr x Q1�I A Q+ k ♦ .+ � � .I L' J .-Y , fflIt Ni IN IN IW. Alp, IN r � ���� y �/ .^ �if.�s?'•'"�/-y� i' % �i: ��1 :t � � eft • 4 �'! N is �: p t1 �' f • s T i- . '+Esc a�n, f f� Mm { �fM��¢t Pyy,F 21 h '{ •t ��� lTd��R ^1 Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered ' 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772.234-8484 Fax 772-234-8488 Report of Independent Accountants The Honorable County Commissioners and Constitutional Officers Indian River County, Florida We have audited the accompanying basic financial statements of Indian River County , Florida (the " County") , as of and for the year ended September 30 , 2003 , as listed in the table of ' contents . These basic financial statements are the responsibility of the County ' s management . Our responsibility is to express an opinion on these basic 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 opinion . In our opinion, the basic financial statements referred to above present fairly , in all material respects , the financial position of the County as of September 30 , 2003 , and the results of its operations and the cash flows of its proprietary funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. tIn accordance with Government Auditing Standards , we have also issued a report dated January 30 , 2004 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 and grants . 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 . The Management ' s Discussion and Analysis on pages three through eleven is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board . We have applied certain limited procedures , which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information . However, we did not audit the information and express no opinion on it . ' "Providing Vision and Direction to our Clients" ' Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section Harris , Cotherman , Jones , Price & Associates Certified Public Accountants - Chartered The Honorable County Commissioners and Constitutional Officers Indian River County, Florida Page two Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole . 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 it. �{�cwt�1�, �OV4tGtrYJ , Qnw , firej � ll�ea �.ta {tc� C. or il � a &ne s 0/7" *&d Vero Beach, Florida January 30 , 2004 2 Indian River County, Florida Management ' s Discussion and Analysis For the Year Ended September 30 , 2003 ' Management's discussion and analysis provides an objective and easily readable analysis ofthe County's financial activities for the October 1 , 2002 through September 30, 2003 fiscal year. The analysis provides summary finan- cial information for the County and should be read in conjunction with the County's financial statements . FINANCIALANALYSIS OF THE COUNTY ' The County was in very good financial condition at the end of the 2003 fiscal year. Total net assets of $ 563 . 7 million represented an 11 . 7% increase from the previous fiscal year. ' Capital assets of the County increased $44 . 3 million ( 10 . 8 %) from the previous fiscal year. Preserving environ- mentally significant lands , completion of the North County Regional Park and expansion of the Utilities system ' were some ofthe major accomplishments . Lost Tree Islands land acquisition $ 15 .2 million North County Regional Park $5 .97 million Sebastian Phase 3B water lines $2.2 million While total expenses increased $6 .2 million, from 139 .2 million to $ 145 .4 million, total revenues increased $29 . 5 million from $ 175 .2 million to $204 .7 million. Changes in Assets (in millions) / $563.7 $600.0 / ' $452.0 •.%;yy <t;::•:::::''•',• . 07.7 $500.0 i•...ey}y.{i:: : :: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5400.0 $300.0 200. $ 0 5700.0 50.0 Net assets Capital assets ' 0 FY 2003 ■ FY 2002 The significant increase in revenues was due to a strong County economy, increases in property values and con- tinuing expansion ofthe Utilities system . Capital contributions up $ 15 . 1 million for governmental activities . Capital contributions up $8 . 5 million for business-type activities . Property taxes up $ 5 . 7 million with no increases in tax rates . Even with the increased operating costs of the Utilities system and the implementation of new recreation programs, ' such as the North County Recreational Park, the County was able to limit the increase in expenses to a 4 . 4% growth rate . ' 3 Indian River County, Florida - Management 's Discussion and Analysis For the Year Ended September 30 , 2003 The following schedule provides a summary of the assets, liabilities and net assets of the County. Total net assets for Governmental Activities increased from $322 . 1 million to $360 . 3 million. Total net assets for Business-type Activities increased from $ 182 . 3 million to $203 .4 million. Total assets ofthe County exceeded total liabilities by $563 . 7 million (net assets) . Unrestricted net assets for Governmental Activities were $20.4 million and unrestricted net assets for Business-type Activities were $47. 1 million. Net Assets (inmillions) Total Governmental Business-type Percent Activities Activities Total Change 2003 2002 2003 2002 2003 2002 Current assets $ 151 . 5 $ 154 . 9 $ 101 . 8 $ 87 . 4 $ 253 . 3 $ 242 . 3 4 . 5 % Non-current assets 0 . 2 0 .2 Li 1 . 2 1 . 3 1 . 4 (0 . 7)% Capital assets 261 . 5 222 . 5 190 . 5 185 . 2 452 . 0 407 . 7 10 . 8 % Total assets 413 . 2 377 . 6 293 . 4 273 . 8 706 . 6 651 . 4 ` 8 . 5 % Current liabilities 17 . 8 17 . 6 14 . 5 13 . 9 32 . 3 31 . 5 2 . 5 % Long-term liabilities 35 . 1 37 . 9 75 . 5 77 . 6 110 . 6 115 . 5 (0 . 4)% Total liabilities 52 . 9 55 . 5 90 . 0 91 . 5 142 . 9 147 . 0 (0 . 3)% Net assets - invested in capital assets , net of related debt 227 . 8 191 .2 113 . 3 106 . 0 341 . 1 297 . 2 14 . 8 % Net assets - restricted 112 . 1 113 . 3 43 . 0 31 . 2 155 . 1 144 . 5 7 . 3 % Net assets - unrestricted 20 . 4 17 . 6 47 . 1 45 . 1 67. 5 62 . 7 7 . 6% Total net assetsj $ 360 . 3 $ 322 . 1 $ 203 . 4 $ 182 . 3 $ 563 . 7 $ 504 . 4 11 . 7% The decrease in Governmental Activities current assets is primarily due to the acquisition of capital assets. Govern- mental Activities capital assets increased due to the purchase of the Lost Tree Islands (environmentally sensitive islands in the Indian River Lagoon), completition of the North County Regional Park, ongoing construction of a new Public Works complex, ongoing renovations to the Dodgertown complex, and beach renorishment of ap- proximately 2 . 5 miles of ocean front beaches . The increase in Business-type Activities current assets ($ 14.4 million) is primarily due to capital contributions from developers and home builders for County Utilities . Capital assets and Net assets - invested in capital assets , increased due to acquisitions using capital contributions and expansion of the water distribution system in the City of Sebastian . Unspent capital contributions are the primary reason that restricted net assets increased from $31 .2 million to $43 .0 million. 4 Indian River County, Florida Management' s Discussion and Analysis For the Year Ended September 30 , 2003 ' The following schedule provides a summary of the changes in net assets . Governmental Activities revenues ex- ceeded expenses by $38 . 3 million . Business-type Activities revenues exceeded expenses by $21 . 0 million. Total revenues increased $29 . 5 million from the previous year. Increases in property values generated an increase in Changes in Net Assets (inmillions) Total Governmental Business-type Percent Activities Activities Total Change 2003 2002 2003 2002 2003 2002 Program revenues Charges for services $ 18 . 9 $ 16 . 2 $ 37 . 0 $ 34 . 7 $ 55 . 9 $ 50 . 9 9 . 6% Operating grants/contributions 5 . 2 5 . 4 0 . 3 - 5 . 5 5 . 4 1 . 8 % Capital grants/contributions 1909 4 . 8 19 . 8 11 . 3 39 . 7 16 . 1 146 . 6% General revenues ' Property taxes 62 . 7 57 . 0 = = 62 . 7 57 . 0 10 . 0% Sales taxes 17 . 2 17 . 0 17 . 2 17 . 0 1 . 2% Franchise fees 6 . 2 5 . 8 - - 6 . 2 5 . 8 6 . 9% ' State shared revenues 10 . 6 12 . 9 - - 10 . 6 12 . 9 ( 17 . 8)% Other 4 . 5 6 . 3 2 . 4 3 . 8 6 . 9 10 . 1 (31 . 7)% Total revenues 145 . 2 125 . 4 59 . 5 49 . 8 204 . 7 175 . 2 16 . 8 % ' Expenses General government 20 . 3 17 . 9 - - 20 . 3 17 . 9 13 . 4% Public safety 46 . 4 45 . 2 - - 46 . 4 45 . 2 2 . 6% Physical environment 0 . 8 1 . 6 - - 0 . 8 1 . 6 (50 . 0)% ' Transportation 16 . 3 16 . 8 = = 16 . 3 16 . 8 (3 . 0)% Economic environment 0 . 6 0 . 4 0 . 6 0 . 4 50 . 0% Human services 6 . 2 6 . 0 - - 6 . 2 6 . 0 3 . 3 % Culture/recreation 8 . 7 8 . 2 = = 8 . 7 8 . 2 6 , 1 % Court related 6 . 1 5 . 5 6 . 1 5 . 5 10 . 9% Interest on long-term debt 1 . 5 1 . 7 - - 1 . 5 1 . 7 ( 11 . 8)% ' Water and sewer = = 25 . 0 23 . 2 25 . 0 23 . 2 7 . 7% Solid waste 8 . 6 8 . 0 8 . 6 8 . 0 7 . 5 % Golf course - - 2 . 9 2 . 8 2 . 9 2 . 8 3 . 6% ' Other - - 2 . 0 1 . 9 2 . 0 1 . 9 5 . 3 % Total expenses 106 . 9 103 . 3 38 . 5 35 . 9 145 . 4 139 . 2 4 . 4% Increase in net assets before transfers 38 . 3 22 . 1 21 . 0 13 . 9 59 . 3 36 . 0 (64 . 7)% Special item - grant to State - ( 1 . 3 ) - - - ( 1 . 3 ) ( 100)% Transfers (0 . 1 ) (0 . 1 ) 0 . 1 0 . 1 - - 0% Increase in net assets 38 . 2 20 . 7 21 . 1 14 . 0 59 . 3 34 . 7 (70 . 9)% 5 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30 , 2003 property taxes . The strong local economy plus population growth ofthe County contributed to increases in charges for services . Capital grants/contributions increased significantly due to State and local government grants for the acquisition ofthe Lost Tree Islands and contributions from Utilities customers . The significant decrease in other revenues is a direct result of plummeting interest rates , which reduced interest earnings from $9 . 0 million to $5 . 3 million. Total expenses increased $6 .2 million from the previous year. Increased spending for general government (financial & administrative costs, other general government costs), public safety (law enforcement, fire protection, ambulance services), and water and sewer services were primarily responsible for the increase in expenses . Property taxes provide 43 % of the revenues for Governmental Activities . Most of the Governmental Activities resources are spent for Public Safety (43 %), General Government ( 19%), Transportation ( 15 %) , and Culture/ Recreation (8%) activities . f As would be expected for Business-type Activities, charges for services provide 62% of the revenues . What is unusual about the County 's Business-type Activities is the amount of revenue provided by capital grants and contributions, over 33 % of total revenue . The reason for this is the rapid growth ofthe County's Utilities System, adding approximately 3 , 000 new users every year. Major developers are required to provide water distribution and sewer collection systems for their projects and then must donate those systems to the County. Everynew user is required to pay impact fees , which are used to expand and enhance the system . FUND FINANCIAL INFORMATION t Governmental Funds General Fund I` t: The County's General Fund is the main operating fund ofthe County. It is used to account for all financial resources that are not restricted by State or Federal laws, County Ordinances or other externally imposed requirements . As of September 30, 2003 , total assets were $24, 148 , 672 and total liabilities were $4,044 , 557 . The ending fund balance of $20, 104, 115 represents approximately 30% ofthe budgeted uses of funds for the next fiscal year. Total sources of funds , $ 74, 852 ,675 , exceeded total uses of funds, $ 72,993 ,285 , by $ 1 , 859, 390 . During the fiscal year, the County amended the budget in the amount of$2.08 million for Federal and State Grants (primarily mass transit and stormwater grants) approved during the course of the year and in the amount of $636 thousand for charges to other governments for the housing of prisoners . Revenues from taxes exceeded the budget because State law requires that the County budget taxes at 95 % of the total levy and actual collections were 96 . 0% . Intergovernmental revenues fell short of anticipated since most grants are reimbursable grants and the County did not incur the expenditures prior to year end. Charges for services exceeded the budget due to service fees collected by the Sheriff, Tax Collector and Property Appraiser. Interest earnings were less than budgeted because interest rates were significantly lower than anticipated. Actual expenditures for general government ser- vices were less than the final approved budget due to vacancies in professional positions , staff turnover, and operating costs of County buildings being less than anticipated. Actual expenditures for public safety were less than the final approved budget primarily because of lower operating costs for law enforcement and staffturnover at the corrections facility. Actual expenditures for physical environment were less than budgeted because grant awards by the County were not made prior to year-end. Actual expenditures for culture/recreation were less than bud- geted because due to delays in staffing new recreational facilities . 6 ' Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30 , 2003 ' Other Governmental Funds The Road Improvement Fees Fund accounts for the collection of road impact fees on all new construction in the ' County. The funds are used to expand the traffic capacity of County roads and bridges . The County 's policy is to budget for all road and bridge projects that have been approved and where the monies have been designated for those projects . Since the projects frequently take multiple years to complete , actual expenditures will be signifi- cantly less than the budget. The Secondary Roads Construction Fund accounts for the use of gas taxes restricted for transportation im - provements , such as roads, bridges , and right-of-way acquisitions . This year, the County budgeted for all trans- portation projects that had been approved and where funds had been designated for those projects . Since the projects frequently take multiple years to complete, actual expenditures will be significantly less than the budget. ' The Transportation Fund accounts for the annual maintenance of roads bridges, right-of-way, drainage systems , , etc . The County has the legal authority to levy ad valorem taxes for the Transportation Fund but has chosen not to do so . Instead, the County uses ad valorem taxes collected in the General Fund and then transferred to the Transportation Fund. The Emergency Services District Fund is used to account for the provision of fire and ambulance services throughout the County. The primary source of funds, 84%, is ad valorem taxes . The Land Acquisition Fund accounts for the acquisition of environmentally sensitive lands . Funds are provided by grants and the remaining proceeds of the Series 2001 general obligation bonds . This year, the County pur- chased the Lost Tree Islands , a long-term goal of the County Commissioners , the City of Vero Beach and the Town of Indian River Shores . The Optional Sales Tax Fund is used to account for the local option one cent sales tax, also referred to as the infrastructure surtax, and capital grants which use the sales tax as matching funds. County voters approved the one cent sales tax in March, 1989 , for a period of fifteen years . In November, 2002 , County voters approved an extension of the sales tax to December, 2019 . Monies in this fund are used for various capital projects such as stormwater improvements , road construction, library expansion and recreational facilities . Proprietary Funds Solid Waste Disposal District Fund This fund is used to account for all operations of the County's landfill, including five off-site collection centers . The District operates like a business , where the rates established by the County generate sufficient funds to pay the costs of current operations and provide funding for long-term asset acquisitions . As required by the State Depart- ment of Environmental Protection, the County has set aside $7.2 million for the long term care of the landfill and for closure of the landfill . Total assets as of September 30 were $38 .2 million, total liabilities were $7 .9 million and net ' assets were $30 . 3 million. Operating income was $ 1 ,608 , 158 , a decrease of $231 , 188 from last year 's operating income. ' 7 Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30 , 2003 Golf Course Fund This fund is used to account for the operations of the County golf course . Total assets as of September 30 were $ 8 . 1 million, total liabilities were $ 7 .4 million and net assets were $0 . 7 million. Operating income was $650,611 , an increase of $ 139, 864 from last year 's operating income . During the year, the County paid $375 , 000 to reduce the amount of outstanding bonds to $6 . 735 million. Net revenues available for ,debt service were 1 . 11 times the debt service requirements of $732 , 103 . County Utilities Fund This fund is used to account for the operations of the County 's water and sewer systems, and sludge disposal . As r of September 30, the County had approximately 44 ,000 water customers and 32 ,000 sewer customers compared to 41 ,000 water customers and 30,000 sewer customers last year. The utilities system has experienced significant growth over the last ten years and will continue to have significant growth in the future, anticipating an additional 3 , 000 new users every year. Total assets as of September 30 were $241 . 8 million, total liabilities were $ 75 . 0 million and net assets were $ 166 . 8 million. Operating income was $382 ,927, a decrease of $ 545 ,909 from last year 's operating income . During the year, the County paid $ 1 ,765 ,000 to reduce the amount of outstanding bonds to $ 72 . 76 million. Net revenues available for debt service were 2 . 64 times the debt service requirements of $ 59809 , 887 . CAPITAL ASSETS ACTIVITY Governmental Activities capital assets activity during the fiscal year: The increase in land is the result of purchasing the Lost Tree Islands for $ 15 . 2 million, the acquisition of other environmentally significant lands and the purchase of land for expansion of the corrections complex. A decrease in infrastructure assets is the result of depreciation expense for the current period and no major infrastructure projects being completed during the year. An increase in buildings and improvements was primarily due to the completion of the North County Regional Park at a cost of$5 . 96 million. Capital Assets (net of depreciation, in millions) Total Governmental Business-type Percent Activities Activities Total Change 2003 2002 2003 2002 2003 2002 Land $ 69 . 8 $ 52 . 1 $ 16 . 4 $ 15 . 9 $ 86 . 2 $ 68 . 0 26 . 8 % Right of way 11 . 0 10 . 5 - - 11 . 0 10 . 5 4 . 8% Infrastructure 64 . 4 67 . 9 - - 64 . 4 67 . 9 (5 .2)% Buildings and improvements 50 . 5 41 . 4 149 . 2 150 . 2 1993 191 . 6 4 . 2% Equipment 23 . 0 23 . 5 3 . 9 3 . 7 26 . 9 27 . 2 ( 1 . 1 )% Construction in progress 42 . 8 27 . 1 21 . 0 15 .4 63 . 8 42 . 5 50 , 1 % Total $ 261 . 5 $ 222 . 5 $ 190 . 5 $ 185 . 2 $ 452 . 0 $ 407 . 7 10 . 9% 8 ' Indian River County, Florida Management's Discussion and Analysis For the Year Ended September 30 , 2003 ' An increase in construction in progress was due to current fiscal year disbursements for the new public works complex ($3 . 3 million), Dodgertown renovations ($4 . 1 million), beach renorishment ($9. 5 million) and road improvement projects . Business-type Activities capital assets activity during the fiscal year: The increase in land is due to the acquisition of 38 acres for a water distribution/collection complex . ' Buildings and improvements increased due to the completion of Phase 3B of the water distribution system in Sebastian. Construction in progress increased due to starting additional water and sewer projects during the fiscal ' year. Additional information on the County's capital assets activity is provided in the notes to the financial statements . ' DEBT MANAGEMENT Governmental Activities Debt ' The County took advantage of the decline in interest rates to reduce its future debt payments . On July 1 , 2003 , the County issued $7, 800,000 of General Obligation Refunding Bonds, Series 2003 . The proceeds of the Bond issue, together with $600 ,000 of County funds, were used to pay off the $ 8 , 320, 000 remaining balance of the General Obligation Bonds, Series 1995 . Future payments for principal and interest have been reduced by $ 1 .4 million and the County realized a net present value savings of $730,000 . Total outstanding principal on the Series 2003 bonds ' and the Series 2001 Bonds as of September 30 , 2003 is $ 17 . 725 million, a $2 . 085 million reduction from the General Obligation Bonds outstanding principal amount as of September 30, 2002 . The General Obligation Bonds were authorized by voters to acquire environmentally sensitive lands and are backed by ad valorem taxes . In ' August 2001 the County issued $ 16 , 810,000 of revenue backed bonds to acquire the Dodger 's spring training facilities and make improvements to those facilities . Principal payments of $460,000 were made during the year and as of September 30 , $ 15 ,990,000 is still outstanding . Since all County bond issues are insured by AAA rated insurance agencies , the bonds are rated AAA, which is the highest rating given by the rating agencies . Business-type Activities Debt ' The County issued bonds in 1993 to legally defease the 1985 and 1991 Recreational Revenue Bonds, which were issued to provide funding for the County golf course , Sandridge . Principal payments of $375 , 000 were made during the year and as of September 30, $6,735 ,000 is still outstanding. In 1993 and in 1996, the County issued bonds to refund outstanding water and sewer bonds and to provide funds for expansion of the water and sewer systems . Principal payments of $ 1 , 765 , 000 were made during the year and as of September 30, $ 72,760,000 is ' still outstanding. All three bond issues are insured byAAArated insurance agencies and, therefore, are ratedAAA. Additional information on the County 's debt management activity is provided in the notes to the financial state- ments. FUTURE FINANCIAL CONDITION ' Governmental Activities For the 2003 /2004 fiscal year, an increase in taxable values of 12 . 7% has provided the ability to pay for a 16% increase in health insurance costs and a 15 % increase in State mandated pension plan contributions without an 9 Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30, 2003 increase in tax rates . The overall millage rate of 6 . 5336 is 1 % less than the millage rate for the 2002/2003 fiscal year. By refunding the General Obligation Bonds , Series 1995 , the County was able to reduce the millage rate for debt service from 0 . 2839 to 0 . 2344 . Business-type Activities For the 2002/2003 fiscal year, the County was able to keep business -type activities fees at the same rates . Revenues generated by the solid waste system, golf course, utilities system and other business-type activities will be sufficient to cover their operating costs and capital needs . Additionally, on October 15 , 2003 , the County issued the $6 . 455 million Recreational Revenue Refunding Bonds , Series 2003 and used the proceeds to pay off the Recreational Revenue Refunding Bonds, Series 1993 outstanding balance of$6 . 735 million. Future principal and interest payments will be reduced by $974,000 and the County realized a net present value savings of$452,000. OVERVIEW OF THE FINANCIAL STATEMENTS The County's basic financial statements comprise three components; l ) Government-wide financial statements, 2) Fund financial statements, and 3 ) Notes to the financial statements . The Government-wide financial statements present an overall picture of the County's financial position and results of operations . The Fund financial statements present financial information for the County's major funds . The Notes to the financial statements provide additional information concerning the County 's finances that are not disclosed in the Government-wide or Fund financial statements . The Government-wide financial statements are the Statement ofNetAssets and the Statement ofActivities . These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net assets of governmental activities and business-type activities and the change in net assets . Governmental Activities are primarily supported by property taxes , sales taxes , federal and state grants, and state shared rev- enues . Business-type Activities are supported by charges to the users of those activities, such as water and sewer service charges . The govemment-wide financial statements and the fund financial statements provide different pictures of the County. The government-wide financial statements provide an overall picture of the County's financial standing, split be- tween Governmental Activities and Business-type Activities . These statements are comparable to private-sector companies and give a good understanding of the County's overall financial health and how the County paid for the various activities, or functions, provided by the County. All assets of the County, including buildings, land, roads, bridges, and traffic signals, are reported in the statement of net assets. All liabilities, including principal outstanding on bonds, capital leases, and future employee benefits obligated but not paid by the County, are included. The statement of activities includes depreciation on all long lived assets of the County, but transactions between the different functions of the County have been eliminated in order to avoid "doubling up" the revenues and expenses . The fund financial statements provide a picture of the major funds of the County and a column for all non-maj or funds . In the case of governmental activities, outlays for long lived assets are reported as expenditures and long- term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government wide financial statements. 10 ' Indian River County, Florida Management 's Discussion and Analysis For the Year Ended September 30, 2003 The Statement ofNet Assets presents information on all assets and liabilities of the County, with the difference between assets and liabilities reported as net assets . Net assets are reported in three categories ; l ) invested in ' capital assets , net of related debt, 2) restricted, and 3 ) unrestricted. Assets , liabilities , and net assets are reported for all Governmental Activities separate from the assets , liabilities and net assets of Business-type Activities . In addition, assets , liabilities , and net assets are reported for the Indian River County Housing Authority, which is ' considered a component unit of the County. The Statement ofActivities presents information on all revenues and expenses of the County and the change in net ' assets . Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the County. To assist in understanding the County's operations, expenses have been reported as governmental activities or business-type activities . Governmental Activities fi- ' nanced by the County include public safety, transportation, culture and recreation, and general government ser- vices . Business-type Activities financed by user charges include water and sewer services, solid waste disposal, and a golf course . Again, expenses and revenues of the Indian River County Housing Authority are reported ' separately from the County's financial information. ' Fund financial statements present financial information for governmental funds, proprietary funds, and a fiduciary fund. These statements provide financial information for the maj or funds of the County. Governmental fund financial statements provide information on the current assets and liabilities of the funds , changes in current financial re- sources (revenues and expenditures), and current available resources . The proprietary funds financial statements provide information on all assets and liabilities of the funds , changes in the economic resources (revenues and expenses) , and total economic resources . The fiduciary fund statement provides information concerning assets held in trust by the County on behalf of others . Fund financial statements include a balance sheet and a statement of revenues , expenditures , and changes in fund ' balances for all governmental funds . A statement of revenues , expenditures, and changes in fund balances - budget and actual, is provided for the County's General Fund and major special revenue funds . For the proprietary funds , which includes internal service funds in addition to business-type activities, a statement of net assets ; a statement of revenues , expenses , and changes in fund net assets ; and a statement of cash flows are presented . A statement of fiduciary net assets is presented for the County 's agency fund. Fund financial statements provide more detailed information about the County's activities . Individual funds are established by the County to track revenues that are restricted to certain uses, comply with legal requirements , or account for the use of State and federal grants . ' Notes to the financial statements provide additional detail concerning the financial activities and financial balances of the County. Additional information about the accounting practices of the County, investments of the County, long-term debt, and pension plans are some of the items included in the notes to the financial statements . ADDITIONAL FINANCIAL INFORMATION ' This report was prepared by the Finance Department under the supervision of the Clerk of the Circuit Court . Questions concerning this report or requests for additional information should be addressed to the Finance De- partment, 1840 25th Street, Vero Beach, FL , 32960 , or by calling 772- 567- 8000 , extension 1201 . Separate financial statements for the Indian River County Housing Authority are available in the administrative office located at 1028 20th Place , Vero Beach, FL , 32960 . 11 � x � , , , . . . �,�,.,: M.. ..; , ,.. . , ��Y � c4 -��� �. � � � . � ,� � . , :; : �� � Q� ' BASIC FINANCIAL STATEMENTS 1 ' 13 s, FR4.....A:, S' ASL n�'r f. va f _ :. . .i _ . - .. Q1�lI ' Indian River County, Florida Statement of Net Assets ' September 30, 2003 Primary Government Governmental Business-type Component Activities Activities Total Unit ASSETS Current assets : Cash and cash equivalents $ 139 , 321 , 005 $ 459609 , 296 $ 184 , 930 , 301 $ 130 , 472 ' Accounts receivable - net 1 , 127 , 797 2 , 2941370 3 , 422 , 167 7 , 073 Internal balances 5775719 ( 577 , 719 ) Due from other governments 61527 , 421 897 , 528 75424 , 949 10 , 990 Interest receivable 461 , 560 7883555 11250 , 115 ' Inventories 132 , 953 6699091 802 , 044 Current restricted assets : Restricted cash and cash equivalents 3 , 3561697 4457823130 48 , 138 , 827 1 , 040 , 872 Investments 5835790 583 , 790 ' Impact fees receivable 1 , 2551129 112559129 Special assessments receivable 5 , 509 , 498 5 , 509 , 498 Total current assets 151 , 5055152 101 , 811 , 668 253 , 316 , 820 1 , 189 , 407 Non -current assets : Special assessments receivable 43 ,255 - 439255 ' Liens receivable 113 , 420 113 , 420 Unamortized bond costs 856 , 165 8569165 Intangible assets - 124 , 750 124 , 750 Deposits 130 , 685 12000 1315685 894 ' Capital assets - non-depreciable 127 , 242 , 500 3794373160 1643679 , 660 4303496 Capital assets - depreciable 256 , 9719069 245 , 951 , 896 50259225965 9 , 312 , 725 Capital assets - accumulated depreciation ( 122 , 684 , 280 ) (925863 , 772 ) ( 215 , 548 , 052 ) ( 3 , 589 , 194 ) Total non -current assets 2617703 , 229 1917620 , 619 453 , 3231848 621547921 Total assets 4137208 , 381 293 , 432 , 287 706 , 6407668 7 , 344 , 28 LIABILITIES 3 Current liabilities (payable from current assets) : Accounts payable 8 , 3655893 15185 , 711 9 , 551 , 604 10 , 399 Claims payable 45581 , 000 4 , 581 , 000 Due to other governments 2693378 18 , 501 287 , 879 Other deposits held in escrow 372 , 039 372 , 039 - ' Deferred revenues 209 , 967 25 , 757 235 , 724 Accrued compensated absences 378 , 000 1005000 47800 Capital leases 2379374 237 , 374 Current liabilities (payable from current restricted assets) : Accounts payable 887 , 555 887 , 555 ' Retainage payable 1 , 087 , 505 1683388 15255 , 893 - Accrued interest payable 149 , 192 356 , 400 505 , 592 4 , 260 Closure and maintenance costs payable 7 , 211 , 362 752119362 Customer deposits - 2 , 3525561 2 , 3529561 41 ,492 ' Bonds payable 2 , 120 , 000 292505000 41370 , 000 1849000 Total current liabilities 17 , 770 , 348 14 , 5565235 327326 , 583 240 , 151 Non-current liabilities : Accrued compensated absences 3 , 3945643 549 , 978 3 , 9441621 ' Capital leases 180 , 144 180 , 144 Bonds payable 3195955000 749921 , 086 1061516 , 086 3 , 3541400 Total long-term liabilities 35 , 169 , 787 75 , 471 , 064 110, 640 , 851 3 , 3545400 Total liabilities 52 , 940 , 135 9027 , 299 1423967 , 434 3 , 594 , 551 ' NETASSETS Invested in capital assets, net of related debt 227 , 7959289 113 , 354 , 198 3415149 ,487 2 , 615 , 627 Restricted for: Capital projects 3955379779 42 , 783 , 994 82 , 321 , 773 Debt service 19039 , 359 187 , 500 1 , 226 , 859 44 , 355 Road projects 51 , 1729195 51 , 172 , 195 Other purposes 20 , 3345379 - 20 , 3345379 9555025 Unrestricted 202389 , 245 47 , 079 , 296 67 , 468 , 541 1345770 ' Total net assets $ 360 , 268 , 246 $ 203 , 404 , 988 $ 563 , 673 , 234 $ 3 , 749 , 777 ' The accompanying notes are an integral part of the financial statements . 15 Indian River County, Florida Statement of Activities For the Year Ended September 30, 2003 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government : Governmental activities : General government $ 20,3235241 $ 615139557 $ 277,469 $ Public safety 46,4091761 4,288,357 530,617 825166 Physical environment 791 ,383 291260 124,495 9,0445778 Transportation 161264,468 5 ,5841999 312555670 451 ,882 Economic environment 587,227 - 98, 133 1 , 108, 811 Human services 6, 165,603 302,998 190,045 1 ,369,803 Culture/Recreation 8,711 ,251 776, 829 4089203 7,850, 814 Court related 6, 144, 728 1 ,458,688 2901867 - Interest and fiscal charges 195495957 Total governmental activities 106,947,619 18,954,688 5 , 175 ,499 19,9081254 Business-type activities : Water and sewer 25,015, 125 21 ,2107935 295897 19,7965906 Solid waste 8,589, 141 10, 1875432 241 ,765 Golf course 21842,907 3 , 1121087 Others 2,0335754 2,4329420 Total business-type activities 38,4801927 363942,874 271 ,662 1997969906 Total primary government $ 1459428,546 $ 55 , 897,562 $ 55447, 161 $ 3997055160 Component Unit : <1r Housing authority $ 8179973 $ 6909645 $ 145 ,785 $ General Revenues : 1 Taxes : Property taxes, levied for general purposes Property taxes, levied for debt service Sales and use taxes Franchise fees State shared revenues Interest earnings Miscellaneous Total general revenues Transfers Total general revenues, transfers and special item Change in net assets Net assets - beginning Net assets - ending The accompanying notes are an integral part of the financial statements . 16 r Net (Expense) Revenue and Changes in Net Assets ' Primary Government Governmental Business-type Component Activities Activities Total Unit $ ( 139532,215 ) $ - $ ( 139532,215) $ - (4195089621 ) (4155083621 ) 8,407, 150 834079150 (69971 ,917) - (6,9715917) - 619,717 = 6199717 = (4,3025757) (49302,757) 324,595 - 324,595 - ' (453959173 ) = (4,395 , 173 ) = ( 1 , 5499957) ( 155495957) (62,9091178) - (62,9093178) - 165022,613 16,022,613 - = 198409056 1 ,840,056 = 269, 180 269, 180 398 ,666 398,666 - ' - 18,530,515 18,530,515 (6259099178) 18530,515 (44,3781663 ) - r 18,457 r 60, 1399514 = 60, 1399514 = 295959265 295959265 1791629979 - 179162,979 - ' 6,222,326 = 6,222,326 = 101605,656 10,605 ,656 2,7875928 21332,013 59119,941 159891 ' 1 ,761 ,754 63 ,367 19825 , 121 - 1019275 ,422 293955380 103 ,6709802 159891 ( 1579870) 157, 870 - - ' 10191175552 29553 ,250 103 ,670,802 15,891 3812089374 215083 ,765 59,292, 139 349348 ' 322,0599872 18293219223 504,381 ,095 39715 ,429 $ 360,2685246 $ 203 ,404,988 $ 563 ,673 ,234 $ 3 ,749,777 17 Indian River County, Florida Balance Sheet Governmental Funds September 30, 2003 Road Secondary Improvement Roads ASSETS General Fees Construction Transportation - - Cash and cash equivalents $ 22, 3273744 $ 23 ,5109512 $ 22,6891640 $ 3 ,454,457 Accounts receivable - net 702, 812 - 4, 843 Special assessments receivable _ - Due from other funds - - 43 ,255 189000 - 2957000 Due from other governments 9659651 21 ,250 539, 012 210, 191 Inventories 65,417 Deposits 69,048 - 1 ,265 Advance to other funds - - 6553000 Total assets $ 24, 148 ,672 $ 23 , 531 , 762 $ 24, 178,652 $ 3 , 714,011 LIABILITIES AND FUND BALANCES Liabilities : Accounts payable $ 3 ,021 , 049 $ 405 , 149 $ 5479285 $ 379,282 Retainage payable 4,474 48,294 452, 172 29325 Due to other funds 302,381 Due to other government 2699378 _ Accrued interest payable Deferred revenues 759236 - - 43 ,255 Other deposits held in escrow 372,039 _ _ Total liabilities 4,044, 557 453 443 999 457 424, 862 Fund balances : Reserved for: Debt service Capital projects _ Other purposes - - 655 ,000 Unreserved, reported in : General fund 20, 104, 115 _ Special revenue funds 2390789319 229524, 195 31289, 149 Total fund balances 20, 104, 115 23 ,0789319 23 , 179, 195 3 ,289, 149 Total liabilities and fund balances $ 2491489672 $ 239531 ,762 $ 24, 1783652 $ 3 , 714,011 The accompanying notes are an integral part of the financial statements . 18 ' Emergency Optional Other Total Services Land Sales Governmental Governmental District Acquisition Tax Funds Funds ' $ 6, 610, 823 $ 21465 , 367 $ 32, 749,243 $ 20, 951 ,462 $ 134 , 759,248 179014 93 ,968 8189637 43 ,255 1929766 - 32,334 5387100 - 1 , 7211911 364,358 3 , 8221373 65 ,417 609372 130,685 - - 655 ,000 $ 6, 8203603 $ 2,465 ,367 $ 345471 , 154 215502,494$ 1409832,715 $ 288 ,482 1 , 807 $ 1 ,7391665 1 , 3862926$ 79769,645 502,657 77, 583 1 ,087, 505 313 ,000 615,381 269, 378 3779014 377,014 31856 - - 1309875 2539222 372,039 2929338 13807 212429322 292859398 101744, 184 - - - 191789248 191789248 ' - 32,228 , 832 6, 604,951 389833 , 783 655 , 000 - - - - 20, 104, 115 6, 5289265 294639560 11 ,433 , 897 699317,385 695289265 2 ,463 , 560 3292287832 199217,096 1301088, 531 ' $ 6,82003 $ 29465 ,367 $ 34,471 , 154 $ 21 ,5029494 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 funds. 261 , 510,289 Long-term liabilities, including bonds payable ($33 ,715 , 000), capital ' leases ($417 , 518 ) and accrued compensated absences ($3 ,715 ,344) are not due and payable in the current period and, therefore, are not reported in the funds. (3798479862) ' Accrued general long-term debt interest expenses are not financial uses and, therefore, are not reported in the fund . ( 1499192 ) Special assessment receivables are not financial resources in the current period and, therefore, are reported as deferred revenues. 439255 ' 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. 3 ,4569617 Grant and gas tax revenues are not recognized in current period because the resources are not available, therefore, are not reported in the fund . 297059048 Interest revenues are not recognized in current period because the resources are not available, therefore, are not reported in the fund. 461 , 560 ' Net assets of governmental activities $ 360,268 ,246 ' 19 Indian River County, Florida Statement of Revenues, Expenditures , and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2003 Road Secondary Improvement Roads General Fees Construction Transportation REVENUES Taxes $ 4958979576 $ - $ 39222,742 $ Licenses and permits 549292 - 18, 111 Intergovernmental 11 656699 - 213599955 Charges for services %365,,311 _ - 748,334 Fines and forfeitures 19084,711 Special assessments - 49596,469 895958 Interest 686,836 427,414 489,056 859174 Miscellaneous 8961403 323834 669467 699402 Total revenues 749136, 828 5 ,0569717 31778,265 33370,934 EXPENDITURES Current: General government 153969,364 - - 737, 838 Public safety 28 856100 Physical environment4559842 _ Transportation p 1 ,824,755 1 ,394,865 6,355,098 957099273 Economic environment 506,097 Human services 396459667 Culture/Recreation 83070,056 Court related 5,980,460 Debt service : - Principal 59,345 Interest and fiscal charges 11241 Capital projects Total expenditures 65,3789927 1 ,3945865 6,3552098 10,447, 111 Excess of revenues over (under) expenditures 8,757,901 3 ,6619852 (235769833) (7,076, 177) OTHER FINANCING SOURCES (USES) Transfers in 7159847 - - 79413 ,988 Transfers out (79614,358) Transfer to paying agent Debt proceeds Total other financing sources (uses) (698989511 ) - - 7 413 988 Net change in fund balances 19859,390 3 ,661 ,852 (2,5761833) 337, 811 Fund balances at beginning of year 18,244,725 192416,467 25 ,756,028 239515338 Fund balances at end of year $ 2051045115 $ 239078,319 $ 23 , 179, 195 $ 39289, 149 The accompanying notes are an integral part of the financial statements . 20 ' Emergency Optional Other Total Services Land Sales Governmental Governmental ' District Acquisition Tax Funds Funds $ 169928,050 $ - $ 11 ,678,272 $ 49393 ,444 $ 8651201084 567,403 939369 85833 , 142 1 ,2889246 10,9819729 3552139140 2,4855429 - - 1 ,0845034 139683 , 108 - - 5005026 1 ,584,737 - - - 2455703 459329130 200,508 583686 609,077 443 , 164 2,9995915 2195901 - 27309 6769861 15964, 177 1959275257 898915828 1395775904 1893245961 1475064,694 - - - 117399585 1894465787 173988,214 - - 7205734 47,565 ,048 = 17, 1059397 = 529250 17,6131489 1585918 19,4429909 775753 5839850 = 29533 ,250 611785917 10,308,012 18,3789068 17,800 5 ,9989260 2775147 - - 2,545 ,000 298819492 235052 - - 1 ,6049852 1 ,6399145 ' - - 7,578,310 4,6499695 12,228,005 1892889413 1751051397 795789310 245407,849 15059559970 1 ,6385844 (8,213 , 569) 59999,594 (670829888) (358913276) - _ - 9039946 99033 ,781 (443 , 849) (8009000) (3335444) (9, 191 ,651 ) (79800,000) (79800,000) 75800,000 7,8001000 (443 , 849) (800,000) 570,502 ( 157, 870) 15194,995 ( 8,2131569) 511995594 (5 , 5129386) (410499146) 593339270 1077, 129 27,029,238 245729,482 1349137,677 $ 6,5289265 $ 2,463 ,560 $ 32,228, 832 $ 19,217,096 $ 130,088,531 Continued 21 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 , 2003 Net change in fund balances - total governmental funds $ (4,049, 146) 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 492073 ,587 Less current year depreciation ( 10,0441808) 39,0285779 Repayments of bond principal and capital lease principal are expenditures in the govern- mental funds, but the repayment reduces long-term liabilities in the statement of net assets . Bondyment p rinci al a 2,545,000 p payment Capital lease principal payment 3365492 218813492 Changes in accrued compensated absences do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds . ( 136,466) 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 previous year accrual and the current year accrual . Accrued bond interest expense 71 712 i Accrued capital lease interest expense 17,476 89, 188 Some revenues reported in the governmental funds have been recognized as revenues in prior fiscal year in the statement of activities . (895958) 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 . 539,459 Governmental funds report non-exchange transactions when the applicable eligibility requirements have been met and resources are available. However, in the statement of activities, non-exchange transactions are recognized when the eligibility requirements are met. This is the net number of prior year accrual and current year accrual . 2889951 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 . (343,925) Change in net assets of governmental activities $ 38208,374 The accompanying notes are an integral part of the financial statements . 22 ' Indian River County, Florida Statement of Revenues , Expenditures, and ' Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Taxes $ 485299,284 $ 48,2999284 $ 491897,576 $ 1 , 5985292 Licenses and permits 408,500 412,500 5499292 1369792 Intergovernmental 9,9399503 121019,870 119656,699 (363 , 171 ) Charges for services 7,8219454 854569967 99365 ,311 908,344 Fines and forfeitures 8779562 9499093 15084,711 135 ,618 Interest 905 ,600 9059600 6865836 (2185764) ' Miscellaneous 3609993 6539984 8969403 242,419 Total revenues 689612, 896 712697,298 74, 136, 828 2,439,530 EXPENDITURES Current : General government 15,836, 169 1696315302 15 ,9699364 661 ,938 Public safety 27,8111406 299435,339 2838569100 579,239 Physical environment 375 ,607 954,363 4559842 498,521 Transportation 735 ,590 251809312 19824,755 355 ,557 Economic environment 5275675 5359544 5069097 291447 Human services 39587, 844 35842, 806 35645 ,667 197, 139 Culture/Recreation 892955612 8,731 ,284 850709056 6619228 Court related 69373 ,234 6, 1575263 599809460 176,803 Debt service : Principal 59,345 59,345 599345 - Interest and fiscal charges 11 ,241 11 ,241 11 ,241 - Total expenditures 635613 ,723 689538,799 6593789927 3 , 159,872 Excess of revenues over (under) expenditures 4,9999173 3 , 158,499 8, 757,901 5,5995402 OTHER FINANCING SOURCES (USES) Transfers in 633 ,033 9349374 7159847 (2189527) Transfers out (8,0175947) (810979553 ) (796149358) 4831195 Total other financing sources (uses) (7,3849914) (711635179) (69898,511 ) 264,668 ' Net change in fund balances (2,3859741 ) (4,004,680) 1 ,859,390 59864,070 ' Fund balances at beginning of year 2,3855741 4,0049680 189244,725 Fund balances at end of year $ - $ - $ 20, 104, 115 The accompanying notes are an integral part of the financial statements . 23 Indian River County, Florida Statement of Revenues , Expenditures , and Changes in Fund Balances - Budget and Actual Road Improvement Fees For the Year Ended September 30 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Special assessments $ 19306,250 $ 138063250 $ 4,596,469 $ 29790,219 Interest 1439461 1435461 427,414 283 ,953 Miscellaneous - - 32,834 32,834 5 Total revenues 1 ,4491711 1 ,949,711 _ 5056, 717 321079006 EXPENDITURES Current : Transportation 1 ,574,466 11 ,88504 15394,865 10,490, 829 Total expenditures 1 ,574,466 111885,694 11394,865 10,4909829 Net change in fund balances ( 1245755) (9,9351983 ) 3 ,6613852 13 ,597,835 a Fund balances at beginning of year 124,755 9,935,983 1954169467 t 1 Fund balances at end of year $ - $ - $ 2310789319 p 2 24 Indian River County, Florida Statement of Revenues , Expenditures, and Changes in Fund Balances - Budget and Actual Secondary Roads Construction For the Year Ended September 30, 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Taxes $ 3 ,0379791 $ 390379791 $ 31222,742 $ 1845951 Interest 5705000 5705000 489,056 (80,944) Miscellaneous - 365467 669467 3000 Total revenues 39607,7913 ,644,258 357785265 134,007 EXPENDITURES Current : Transportation 49034, 138 235565 , 115 693559098 17,210,017 Total expenditures 490343138 23 ,565, 115 653559098 17,2101017 Net change in fund balances (4269347 19 920 857 576 8 ( ) (2, 33 ) 17,3441024 ' Fund balances at beginning of year 426,347 1999209857 25 ,7565028 Fund balances at end of year $ - $ - $ 239179, 195 1 1 r r r r r ' 25 Indian River County, Florida Statement of Revenues, Expenditures , and Changes in Fund Balances - Budget and Actual Transportation For the Year Ended September 30 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Licenses and permits $ 9,500 $ 9,500 $ 18, 111 $ 8,611 Intergovernmental 253319238 2,331 ,238 2,359,955 28,717 Charges for services 450,300 4509300 748,334 2989034 Special assessments 142,500 142,500 89,958 (525542) Interest 90,250 90,250 851174 (5 ,076) Miscellaneous 28,500 325500 699402 369902 Total revenues 3 ,052,288 3 ,0569288 3 ,3709934 314,646 EXPENDITURES Current : General government 757,744 810,799 737, 838 729961 Transportation 10, 164, 117 105619,862 997099273 9109589 Total expenditures 1039219861 11 ,4301661 10,4477111 9833550 Excess of revenues over (under) expenditures (7,869,573 ) (813749373 ) (7,076, 177) 192989196 OTHER FINANCING SOURCES (USES) Transfers in 79813 ,988 738139988 79413 ,988 (400,000) Total other financing sources (uses) 7,8133988 79813 ,988 7,413 ,988 (4003000) Net change in fund balances (55 ,585) (560,385) 337,811 8983196 Fund balances at beginning g � g of year 553585 560,385 2,951 ,338 Fund balances at end of year $ - $ - $ 3 ,289, 149 The accompanying notes are an integral part of the financial statements . 26 ' Indian River County, Florida Statement of Revenues , Expenditures, and Changes in Fund Balances - Budget and Actual Emergency Services District ' For the Year Ended September 30 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 169750,991 $ 1697509620 $ 169928,050 $ 1779430 Intergovernmental 149791 56,940 93 ,369 36,429 Charges for services 1 ,677,225 198583500 2,485 ,429 6263929 Interest 2139750 213 ,750 200,508 ( 13 ,242) Miscellaneous 1999399 2209893 2195901 (992) Total revenues 18,8569156 19, 100,703 19,927,257 8265554 EXPENDITURES Current : Public safety 17,4559782 18,831 ,264 179988,214 843 ,050 Debt service : Principal 272,847 2775147 277, 147 - Interest and fiscal charges 275353 23 ,053 23 ,052 1 Total expenditures 17,7559982 19, 131 ,464 18,288,413 843 ,051 Excess of revenues over (under) expenditures 1 , 100, 174 (309761 ) 1 ,6389844 15669,605 OTHER FINANCING SOURCES (USES) Transfers out (422,033 ) (4449038) (4439849) 189 Total other financing sources (uses) (4229033 ) (444,038) (443 , 849) 189 ' Net change in fund balances 678, 141 (4749799) 1 , 194,995 116695794 Fund balances at beginning of year 4749799 593333270 Fund balances at end of year $ - $ 65528,265 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 Land Acquisition For the Year Ended September 30 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Intergovernmental $ - $ 7,519,788 $ 8,833 , 142 $ 15313 ,354 Interest - - 58,686 5806 Total revenues - 71519,788 8, 891 , 828 13372,040 EXPENDITURES Current : Physical environment 9,0501000 18,0079499 179105 ,397 902, 102 Total expenditures 990509000 18,0079499 17, 105 ,397 9025102 Net change in fund balances (9,050,000) ( 10,487,711 ) (8,213 ,569) 29274, 142 Fund balances at beginning of year 99050,000 1094875711 10,677, 129 r Fund balances at end of year $ - $ - $ 2,4635560 The accompanying notes are an integral part of the financial statements . 28 Indian River County, Florida Statement of Net Assets Proprietary Funds September 30, 2003 Business-type Activities- Enterprise Funds Governmental Solid Waste Other Activities Disposal Golf County Enterprise Internal District Course Utilities Funds Total Service Funds ' ASSETS Current assets : Cash and cash equivalents $ 9 , 8723299 $ 31292 $ 31 , 5701797 $ 4 , 1625908 $ 45 , 609 , 296 $ 75918 , 454 Accounts receivable - net 233 , 770 574 2 , 060 , 026 2 , 294 , 370 309 , 160 ' Due from other funds 77 ,281 - 77 , 281 _ Due from other governments 9 , 000 888 , 528 897 , 528 Interest receivable 788 , 555 - 788 , 555 - Inventories - 54 , 315 591 , 219 231557 669 , 091 67 , 536 ' Current restricted assets : - - Cash and cash equivalents 10 , 6231174 33 , 948 , 516 210 , 440 445782 , 130 Investments 583 , 790 583 , 790 Impact fees receivable 1 , 255 , 129 - 112559129 Special assessments receivable 5 , 5095498 5 , 5092498 - Total current assets 20 , 8069524 650 , 971 761612 , 268 4 , 3965905 1021466 , 668 8 , 295 , 150 Non -current assets : Liens receivable - - 113 , 420 113 , 420 - ' Unamortized bond costs - 92 , 809 763 , 356 - 856 , 165 Intangible assets 79 , 750 45 ,000 124 , 750 Deposits 1 , 000 11000 Capital assets - non-depreciable 11 , 392 , 477 669 , 630 41346 , 834 1654085941 - Capital assets - depreciable 135710 , 836 85460 , 141 242 , 962 , 055 13847 , 083 266 , 980 , 115 450 , 349 Capital assets - accumulated depreciation ( 7 , 7701655 ) ( 1 , 720 , 667 ) ( 83 , 0551520 ) ( 316 , 930 ) ( 92 , 8632772 ) ( 4313349 ) Total non -current assets 175412 , 408 79502 , 913 165 , 175 , 145 1 , 530 , 153 191 , 620 , 619 191000 Total assets 38 , 218 , 932 8 , 1539884 241 , 787 , 413 5 , 927, 058 29450875287 8 , 314 , 150 LIABILITIES Current liabilities (payable from current assets ): Accounts payable 513 , 773 75 , 097 518 , 553 789288 1 , 185 , 711 2199234 Claims payable - 4 , 581 000 Due to other governments 7 , 524 5 , 931 52046 18 , 501 ' Deferred revenues 25 , 757 - 25 , 757 Accrued compensated absences 18 , 000 13 , 000 56 , 000 13 , 000 100 , 000 65000 Current liabilities (payable from restricted assets) : Accounts payable - - 887 , 555 887 , 555 - 1 Retainage payable - 168 , 388 1685388 - Accrued interest payable 28 , 398 328 , 002 356 , 400 Closure and maintenance costs payable 75211 , 362 7 , 211 , 362 Customer deposits 645700 - 2 , 0775421 210 , 440 2 , 352 , 561 Bonds payable 395 , 000 1 , 855 , 000 2 , 250 , 000 Total current liabilities 717895835 531 , 776 5 , 8401850 293 , 774 14 , 4561235 438069234 Non-current liabilities : Accrued compensated absences 116 , 681 832499 363 , 317 862481 549 , 978 515299 Advance from other funds - 6555000 - 655 , 000 ' Bonds payable - net of unamortized discount - 611489359 68 , 7725727 - 74 , 921 , 086 - Total non-current liabilities 116 , 681 6 , 886 , 858 69 , 1362044 86 , 481 76 , 2261064 51 , 299 Total liabilities 7 , 906 , 516 71418 , 634 74 , 976 , 894 380 , 255 90 , 682 , 299 4 , 857 , 533 NETASSETS Invested in capital assets, net of related debt 17 , 3325658 865 , 745 93 , 625 , 642 11530 , 153 113 , 354 , 198 199000 Restricted for: Capital projects - 429783 , 994 42 , 783 , 994 Debt service - 32 , 917 1543583 187,500 Unrestricted 12 , 979 , 758 ( 163 ,412 ) 30 , 246 , 300 4 , 016 , 650 47, 0797296 3 , 437 , 617 Total net assets $ 30 , 312 , 416 $ 735 ,250 $ 166 , 810 , 519 $. 5 , 54�6 , 803 $ 203 , 404 , 988 $ 3 , 456 , 617 The accompanying notes are an integral part of the financial statements . ' 29 Indian River County, Florida Statement of Revenues , Expenses , and Changes in Fund Net Assets Proprietary Funds For the Year Ended September 30 , 2003 Business-type Activities Enterprise Funds Solid Waste Other Disposal Golf County Enterprise OPERATING REVENUES District Course Utilities Funds Charges for services $ 105187,432 $ - $ - $ 274325420 Charges for services pledged as security for revenue bonds - 331125087 21 ,2101935 _ Total operating revenues _ 1011871432 31112,087 21 ,210,935 214324420 OPERATING EXPENSES Personal services 2,429,504 815,561 51922,537 1 ,4539486 Material, supplies , services and other operating 555909573 1 ,510,618 497429107 522,613 Depreciation 5595197 1355297 101163 ,364 57,655 Total operating expenses 895793274 214615476 20, 828,008 2,0335754 Operating income 156089158 6505611 3825927 3985666 NONOPERATING REVENUES (EXPENSES) Interest income 429,553 - - 819809 Interest income pledged as security for revenue bonds - 23 ,391 197979260 - Operating grants 241 ,765 - 29, 897 - Gain on disposal of equipment 27,740 2,087 309520 39020 Interest expense - (365,067) (45073 ,434) _ Bond amortization expense - ( 149742) (98,388) _ Intangible amortization expense (9,867) - ( 15 ,000) - Loss on disposal of equipment - ( 1 ,622) (295 ) Total nonoperating revenues (expenses) 689, 191 (355 ,953 ) (2,329,440) 84,829 Income before transfers and capital contributions 2,297,349 294,658 ( 1 ,946,513) 483 ,495 Transfers - - - 157,870 Capital contributions 1457943002 Capital contributions pledged as security for revenue bonds - - 5,002,904 - Change in net assets 212979349 294,658 17,850,393 641 ,365 Total net assets - beginning 28,0159067 440,592 148,9605126 4,905,438 Total net assets - ending $ 302312,416 $ 7359250 $ 166, 810,519 $ 59546,803 The accompanying notes are an integral part of the financial statements . 30 Governmental Activities Internal Total Service Funds ' $ 12,619, 852 $ 12,931 ,729 249323 ,022 - 365942,874 12,931 ,729 1096219088 29724,528 12,3659911 99789,249 1019159513 10,956 3399029512 1255249733 310409362 4065996 511 ,362 131 ,938 1 ,820,651 - ' 271 ,662 - 63 ,367 525 (49438,501 ) - ( 1135130) = (24,867) ( 1 ,917) - ( 1 ,911 ,373 ) 1329463 19128,989 5399459 157,870 149794,002 - ' 590029904 - 219083 ,765 539,459 1821321 ,223 2,9179158 $ 20394049988 $ 3 ,456,617 i ' 31 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2003 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County CASH FLOWS FROM OPERATING ACTIVITIES District Course Utilities Cash received from customers $ 10, 167,473 $ 39115,373 $ 21 ,863 ,806 Cash paid to suppliers for goods and services (5 ,399, 115) ( 1 , 590,352) (45689,438) Cash paid to employees for services (2,425 , 112) (797, 558 ) (6, 197,698) Net cash provided by operating activities 233435246 7275463 109976,670 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES - - Transfers Operating grants 2419765 - 29,897 Net cash provided by noncapital financing activities 241 ,765 - 29, 897 CASH FLOWS FROM CAPITAL AND RELATED _ FINANCING ACTIVITIES s Principal payments - bonds/notes - (375 ,000) ( 1 ,7651000) Interest paid on long-term debt - (359,411 ) (41044, 887) v Proceeds from sale of capital assets 27,740 21087 309225 Purchase of capital assets (964,917) ( 1055544) ( 10,627,285) Bond paying agent fees - - ( 1 ,062) Capital contributed by others - - 13 ,607, 813 - Proceeds from advances from other funds - 30,000 Net cash used in capital and related financing activities (9379177) (8073868) (2, 800, 196) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 429,553 23 ,391 198485164 Proceeds from investment maturity - 539 576 Net cash provided by investing activities 429,553 5621,967 1 ,848, 164 Net increase in cash and cash equivalents 2,077,387 482,562 1054,535 Cash and cash equivalents at beginning of year 1854183086 104,520 55 ,464, 778 Cash and cash equivalents at end of year $ 20,4959473 $ 5879082 $ 659519,313 Classified as : Current assets $ 9, 8725299 $ 3 ,292 $ 31 ,570,797 Restricted assets 10235174 583 ,790 33 ,9483516 Totals $ 205495,473 $ 587,082 $ 655191313 The accompanying notes are an integral part of the financial statements . 32 ' Governmental Other Activities Enterprise Internal Funds Total Service Funds $ 29535,545 $ 3756825197 $ 129744,390 (4949452) ( 1251739357) (9, 5129686) ( 17459,697) ( 107880,065 ) (257265467) ' 5815396 141628,775 5059237 ' 157,870 1579870 - 2719662 - 1579870 429,532 - (2, 140,000) - ' - (454045298) - 35020 631072 525 ( 146,222) ( 11 ,843 ,968) (49162) 1 = ( 19062) = 13 ,607, 813 30,000 - ( 143 ,202) (45688 ,443 ) (39637) 811809 29382,917 1315938 539, 576 - 815809 29922,493 1319938 677, 873 1312925357 633 ,538 3 ,6951475 7796829859 75284,916 $ 4,3739348 $ 9099757216 $ 759189454 $ 491629908 $ 45 ,609,296 $ 7,918,454 210,440 459365,920 $ 493739348 $ 90,9755216 $ 7,9189454 1 Continued 33 Indian River County, Florida Statement of Cash Flows Proprietary Funds For the Year Ended September 30 , 2003 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities RECONCILIATION OF NET OPERATING INCOME (LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income $ 15608, 158 $ 650,611 $ 382,927 Adjustments to reconcile operating income to net cash provided by operating activities : Depreciation 5599197 135 ,297 10, 1637364 Capitalized self-incurred expenses - - (311 ,469) (Increase) Decrease in assets : Accounts receivable (209529) 563 (203 ,321 ) Due from other funds (3 ,930) Due from other governments _ - _ Inventories - ( 1 ,079) 3 ,652 Impact fees receivable - - 6303061 Deposits Increase (Decrease) in liabilities : Accounts payable ( 192,626) (76,819) 49,017 Due to other governments - ( 1 ,836) Other deposits in escrow Retainage payable (52, 110) Customer deposits 4,500 - 226, 131 Closure and maintenance costs payable 436, 194 Deferred revenues - 2,723 Claims payable - m _ Accrued compensated absences 4,392 18,003 36,308 Total adjustments 7359088 769852 10,593 ,743 Net cash provided by operating activities $ 2,343 ,246 $ 7271463 $ 10,976,670 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ (429358) $ (385) $ ( 129, 876) Contributed property, plant and equipment $ - $ - $ 4,065, 129 The accompanying notes are an integral part of the financial statements . 34 Governmental Other Activities Enterprise Internal Funds Total Service Funds $ 3981666 $ 390405362 $ 406,996 579655 1059155513 10,956 (311 ,469) = (2239287) (2505626) (3 ,930) 125 125 63 ,287 25422 45995 45846 630,061 402 25 ,473 ( 194,955 ) (48,685) 266 ( 15570) - ' 1039000 1035000 = (52, 110) 436, 194 - = 131 ,617 = 2,723 - - 3209000 (69211 ) 525492 ( 1 ,939) 182,730 119588,413 98,241 ' $ 5819396 $ 1416289775 $ 505 ,237 $ ( 19999) $ ( 1749618) $ ( 129850) $ - $ 490659129 $ - ' 35 Indian River County, Florida Statement of Fiduciary Net Assets Agency Fund September 30, 2003 ASSETS Cash and cash equivalents $ 79393 , 024 Accounts receivable - net 5 , 775 Total assets 793985799 LIABILITIES Accounts payable 203 378 Due to other governments 3 922607 Other deposits held in escrow 3 ,272 , 814 Total liabilities 7 ,398 , 799 NET ASSETS Total net assets $ _ V i ?n The accompanying notes are an integral part of the financial statements . 36 ' Indian River County , Florida Notes To Financial Statements Year Ended September 30, 2003 ' Note Page Note Page 1 . Summary of Significant Accounting 12. Long-term Liabilities 65-78 Policies 3847 Business-type Activities 65-69 Reporting Entity 38-39 Recreational Revenue Refunding Measurement Focus and Basis of Bonds, Series 1993 65 Accounting 40-42 Water and Sewer Revenue Basis of Presentation 42-44 Bonds, Series 1993A 66.67 Assets, Liabilities, and Net Assets Water and Sewer Revenue or Equity 44-47 Bonds, Series 1996 67-69 Cash and Cash Equivalents 44 Annual Debt Service Payments - Investments 44 Business-type Activities 69 Allowance for Doubtful Accounts 44 Governmental Activities 70-73 Receivables and Payables 44 General Obligation Bonds, Inventories 45 Series 2001 and Series 2003 70 Restricted Assets 45 Spring Training Facility Revenue Capital Assets 4546 Bonds, Series 2001 71 -72 ' Capitalization of Interest 46 Annual Debt Service Payments - Unamortized Bond Costs 46 Governmental Activities 73 Unamortized Bond Discounts 46 Housing Authority Revenue Bonds 74-75 Intangible Assets 46 Summary of Defeased Debt Deferred Revenues 47 Outstanding 75 Accrued Compensated Absences 47 Capital Leases and Notes Payable 76 Obligation for Bond Arbitrage Changes in Long-term Liabilities 77 ' Rebate 47 Conduit Debt Obligations 78 Landfill Closure Costs 47 13 . Provision for Closure Costs 79 Capital Contributions 47 14. Defined Benefit Pension Plans 7942 2. Reconciliation of Government-wide and Florida Retirement System 79-80 Fund Financial Statements 48-55 Firefighters Defined Benefit 3 , Stewardship , Compliance, and Pension Plan 81 -82 Accountability 56-57 15 . Operating Leases 83 Budgets and Budgetary Accounting 56-57 16. Fund Equity 84-85 4. Cash and Cash Equivalents 57-59 17. Fund Equity Deficit 85 Deposits 57 18. Risk Management 86-87 ' Accrued Interest 57 19. Commitments and Contingencies 87-88 Investments 58-59 Litigation 87 5. Property Tax Revenues 59 Contracts and Other Commitments 88 ' 6. Capital Assets 60-61 Restatement of Prior Year Balances 88 7, Restricted Cash and Cash Equivalents and Grants 89 Investments 61 20. Subsequent Events 89 8. Payable from Restricted Assets 62 9, Interfund Balances 62-63 10. Interfund Transfers 63 11 . Receivable and Payable Balances 64 ' 37 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 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 the Legislature , separating it from St . Lucie County, the County encompasses approximately 497 square miles of land with an estimated population of 118 , 149 . The County is governed by the Board of County Commissioners and five elected constitutional officers (Clerk ofthe Circuit Court, PropertyAppraiser, Sheriff, Supervisor ofElections, and Tax Collector) in accordance with state statutes and regulations . The constitutional officers maintain separate accounting records and budgets from the Board of County Commissioners . The Constitution ofthe 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 proprietary fund types 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 . In June 1999 , the Governmental Accounting Standards Board (GASB ) unanimously approved Statement 34 - Basic Financial Statements and Management 's Discussion and Analysis - for State and Local Governments . This statement provides for the most significant change in financial reporting in over twenty years and is scheduled for a phased implementation (based on the size of government) starting with the fiscal year ending 2002 . As part of this statement, there is a new reporting requirement regarding the local government's infrastructure (roads, bridges, traffic signals , etc .) . This requirement permits an optional four-year further delay for implementation of the infrastructure related portion to the fiscal year ending in 2006. The County has fully implemented the basic model and the infrastructure- related portion in the fiscal year 2001 -2002 . A. Reporting Entity The concept underlying the definition ofthe 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 ofthe closeness of their relationships with the County, should be blended as though they are part ofthe 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 ofthe 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. 38 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued A. Reporting Entity - Continued The County may be financially accountable if an organization is fiscally dependent on the County regardless of whether the organization has (a) a separately elected governing board, (b) a governing board appointed by a higher level of government, or (c) a jointly appointed board. Based on these criteria, 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 . 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 $ 157,253 and the related actual operating costs totaled $ 145 ,785 for the fiscal year. The IRCHA cannot overspend appropriations in total . Since the IRCHA is fiscally 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. The IRCHA is presented as a proprietary fund type . iSeparate financial statements for the Solid Waste Disposal District and the Emergency Services District are not available. Separate financial statements for the Indian River County HousingAuthority are available in the administrative office located at 1028 20th Place , Vero Beach, Florida 32960 . Because the component units have been reported as if they are part of the County, there are limited instances where special note reference or separation will be required. If no separate note reference or categorization is made, the user should assume that information presented is equally applicable . 39 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis OfAccounting The basic financial statements ofthe County are composed ofthe following : • Government-wide financial statements • Fund financial cial statements • Notes to the financial statements 1 . Government-wide Financial Statements r 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 ofthe primary government (including its blended component units), as well as its discreetly presented component unit. For the most part, the effect of interfund activity has been removed from these statements . 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. t 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 cost of each program . Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements , rather than reported as an 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 an expenditure . As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements . The County chooses to eliminate the indirect costs between governmental activities to avoid "dou- bling up" effect. 40 ' Indian River County , Florida ' Notes To Financial Statements Year Ended September 30, 2003 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 givemments. ' 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 40 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 cash is received by the County . 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-teen receivables (special assessments) due to governmental funds are reported on their 1 balance sheets in spite of their spending measurement focus . Non-current portions of other long-term receivables are offset by fund balance reserve accounts . ' Because of theirspending measurement focus expenditure recognition for governmental fund types exclude amounts 1 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 . 41 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Measurement Focus And Basis Of Accounting - Continued Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets . The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgements, 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 andAccounting Research Bulletins, issued on or before 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 ofthe fund. Exchange transactions are those in which each party receives and gives up essentially equal values . Nonoperating revenues result from nonexchange transactions or ancillary activities .Operating expenses are costs incurred to provide services whereas nonoperating expenses are costs of debt financings , amortization of intangible assets and loses on assets sales . Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements , rather than 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 . 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 which either had debt outstanding or specific community focus as major funds . The non- major 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. Road Improvement Fees Fund - The Road Improvement Fees Fund accounts for the receipt of traffic impact fees . Funds are used for the upgrading and construction of roads and bridge 42 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30, 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Basis of Presentation - Continued 1 . Governmental Major Funds = Continued t 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 tax, county gas tax and transfers from the General Fund . Emergency Services District Fund - The Emergency Services District Fund accounts for the expenditures tures of ' providing fire protection and advanced life support to all of the County . Financing is provided by ad valorem taxes . ' Land Acquisition Fund - The Land Acquisition Fund acounts for the expenditures incurred in the purchase of environmentally sensitive land. Financing is provided by bond proceeds from the voted debt "Environmentally Sensitive Land Acquisition Bonds". 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 . 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 and Self Insurance services provided to other departments of the County on a cost reimbursement basis . ' Agency Fund - The Agency Fund is used to account for the collection and disbursement of monies by County the Coun on behalf of other governments and individuals, such as cash bonds, traffic fines, child support payments and ad valorem ' taxes . ' 43 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES - Continued C. Basis of Presentation - Continued 4. Non -current Governmental Assets/Liabilities : GASB Statement 34 requires non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds and capital leases, be reported in the governmental activities column in the government-wide statement of net 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 . 2 . Investments Investments consist of U . S . Treasury Securities , U . S . Government Agency Securities , a guaranteed 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 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 receivable that may become uncollectable . At September 30 , 2003 , this allowance was $274, 988 . No other allowances for doubtful accounts are maintained since other fund accounts receivable are considered collectable as reported at September 30, 2003 , 4 . Receivables and Payables Activity 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 govemment-wide financial statements as "internal balances" . All receivables are shown net of an allowance for doubtful accounts . Receivables in excess of 180 days comprise the trade accounts receivable allowance for doubtful accounts . 44 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30 , 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets , Liabilities, and Net Assets or Equity = Continued ' 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. 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 asstes, qualified expenses are considered to be paid first from restricted net assets and then from unrestricted net assets . 7. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e . g. , roads, bridges, right-of-ways, ' water and sewer distribution systems and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements . Capital assets are defined by the County 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 donation. ' The costs of normal maintenance and repairs that do not add to the value of the asset or materially tenally 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 Sheriffis 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 . ' 45 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets, Liabilities , and Net Assets or Equi - 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 Years Buildings and improvements 25 - 50 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 Road and bridge infrastructure 20 - 50 8 . Capitalization of Interest Interest costs related to bond issues are capitalized during the construction period . These costs are netted against applicable interest earnings on construction fund investments . During the current period, the County did not have any capitalized interest . r, 9 . 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. 10. Unamortized Bond Discounts Bond discounts associated with the issuance of Proprietary Fund revenue bonds are amortized according to the straight-line method. For financial reporting, unamortized bond discounts are netted against the applicable ' long-term debt . 11 . Intangible Assets Land use rights were purchased by the County Utilities Fund from the Golf Course Fund for irrigating the golf course with treated effluent . Leachate disposal rights were purchased by the Solid Waste Disposal 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 . 12 . Deposits Deposits 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 . 46 Indian Rrver County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Assets , Liabilities , and Net Assets or Equity - Continued ' 13 . Deferred Revenues ' Deferred revenues reported in government-wide financial statements represent unearned revenues . The deferred revenues will be recognized as revenue in the fiscal year they are earned in accordance with the accrual basis of accounting . Deferred revenues reported in governmental fund financial statements represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred revenues . ' 14. Accrued Compensated Absences The County accrues accummulated unpaid vacation and sick leave when earned by the employee . The current ' portion is the amount estimated to be used in the following year. The non-current portion is the amount estimated to be used in subsequent fiscal years . Both the current and non-current estimated accrued compensated absences amounts for governmental funds are maintained separately and represent a reconciling item between the fund ' and government-wide presentations . 15. Obligation for Bond Arbitrage Rebate Pursuant to Section 148 (f) of the U . S . Internal Revenue Code , the County must rebate to the United States ' Government the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. The County uses the "revenue reduction" approach in accounting for rebatable arbitrage . This approach treats excess earnings as a reduction of revenue . The County has no arbitrage ' liability outstanding as of September 30, 2003 . 16 . Landfill Closure Costs ' Under the terms of current state and federal regulations, the Solid Waste Disposal District (S WDD) 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 S WDD recognizes these costs of closure and post-closure maintenance over the active life of each landfill area, based on landfill capacity used during the period . Required ' obligations for closure and post-closure costs are recognized in the Solid Waste Disposal District Enterprise Fund . 17. 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 nonoperating revenues and expenses on the statement of revenues , expenses , and changes in fund assets in accordance with GASB Statement 33 . 47 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 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 1 » g ($ 30,088 , 531 ) differs from net assets of governmental activities ($360,268 ,246) 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 state- ment of net assets included those capital assets among the assets of the County as a whole . Cost of capital assets $383 , 763 ,220 Accumulated depreciation ( 122 ,2525931 ) Total $261 , 510 ,289 LonjZ-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, 2002 were : Bonds Payable : General Obligation Bonds, Series 2001 $ (9, 925 , 000) General Obligation Refunding Bonds, Series 2003 (7 , 8007000) Spring Training Facility Bonds, Series 2001 ( 1559909000) Capital leases (417, 518 ) Compensated absences (3 , 715 , 344) Total $(3758479862) 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 Bonds, Series 2003 , General Obligation Bonds, Series 2001 , Spring Training Facility Bonds, Series 2001 , and capital leases . Bonds $ ( 1385889) Capital leases ( 109303 ) Total $ ( 149, 192) 48 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 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 Deferred revenues Deferred revenues in the statement ofnet assets differs from the amount reported in governmental funds due to special assessment receivables . Governmental fund financial statements report unearned revenues or revenues which are measureable but not available as deferred revenues . However, deferred revenues in governmental funds are suscep- tible to full accrual on government-wide financial statements . Deferred revenues reduced $ 432255 Internal service funds ' Internal service funds are used by management to charge the costs of fleet management and insurance activities 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 fund $ 32456 , 617 ' 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 . Accrued grant revenues $2 , 705 , 048 ' 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 $ 461 , 560 Elimination of interf ind receivables/payables Interfund receivables and payables in the amount of $615 ,381 between governmental funds must be eliminated for the statement of net assets . r ' 49 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government Total Capital Long-term Governmental Related Debt Interest ASSETS Funds Items Transactions Payable Cash and cash equivalents $ 134 , 7599248 Accounts receivable - net 818 , 637 Special assessments receivable 43 ,255 Due from other funds 538 , 100 Due from other governments 39822 , 373 Interest receivable - Inventories 65 ,417 Deposits 130,685 Advance to other funds 6555000 Capital assets - net - _ 261 , 510 289 Total assets $ 14038325715 $ 261 , 5105289 X LIABILITIES AND FUND BALANCES X. Liabilities : Accounts payable $ 7, 7695645 Retainage payable 15087, 505 Accrued interest payable 377 014 - 149, 192 Claims payable _ Due to other funds 615 , 381 Due to other governments 26% 378 Deferred revenues 2539222 - Other deposits held in escrow 372 039 Accrued compensated absences - - 357159344 Capital leases - - 4179518 _ Bonds payable - - 335715 , 000 F Total liabilities 10 , 744, 184 - 3758479862 149, 192 Fund balances/net assets 1305088 , 531 261 , 510, 289 (3758473862) ( 149, 192) Total liabilities and fund balances/net assets $ 140, 832, 715 $ 261 , 510,289 50 ' - Continued - wide Statement of Net Assets - Continued ' Internal Accrued Accrued Reclassifications Statement Deferred Service Grant Interest and of Revenues Funds Revenues Revenues Eliminations Net Assets $ - $ 7 , 9189454 $ - $ - $ - $ 142 , 6779702 ' = 309 , 160 - - - 1 , 127 , 797 ' - - 439255 39, 619 577 , 719 297055048 69527 ,421 4615560 - 461 , 560 ' = 67 , 536 = _ = 132 , 953 130, 685 (655 , 000) - ' - 195000 - - - 2619529 ,289 $ - $ 8 , 314 , 150 $ 2 , 7053048 $ 461 , 560 $ (615 , 381 ) $ 413 ,208 , 381 $ _ $ 219,234 $ - $ - $ - $ 799885879 1 ,087 , 505 5265206 455815000 455815000 (615 , 381 ) 2699378 (43 ,255 ) 209, 967 - - - - 372 , 039 - 57 ,299 _ - - 33772 ,643 417 , 518 33 , 715 , 000 (43 ,255 ) 498579533 _ _ (615 , 381 ) 523940, 135 439255 3 ,456 , 617 2 , 7055048 4615560 - 360,2689246 $ - $ 853145150 $ 2 , 7059048 $ 461560 $ (615 , 381 ) $ 413 ,208 , 381 ' 51 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2003 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS - Continued B . Explanation of Differences Between Governmental Fund Operating Statements and the State- ment of Activities The "net change (decrease) in fund balances" for governmental funds ($4 , 049, 146) differs from the "change in net assets" for governmental activities ($38,208,374) 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 ex- pended 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 $ 49 , 073 , 587 Depreciation expense I ( 10 , 044 , 808 ) Difference $ 39, 0281779 t y 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 $ 2 , 5459000 Capital lease principal payments made 336,492 Total $ 2, 881 ,492 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 $ ( 136,466) 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 previous year accrual and the current year accrual . Interest payable : Net accrued bond interest payable $ 71 , 712 Net accrued capital lease interest payable 17 476 Net adjustment ' $ 89 , 188 52 Indian River County, Florida ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 2 - RECONCILIATION OF GOVERNMENT WIDE AND FUND FINANCIAL STATEMENTS - Continued B . Explanation of Differences Between Governmental Fund Operating Statements and the State- ment of Activities - Continued ' 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 $ ( 895958) ' 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 . Internal service funds operating gain $ 539 459 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 $ 2885951 ' 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 $ (343 , 925 ) Reclassification and Eliminations The general fund recognizes revenues in the amount of $ 1 ,738 ,362 for the general administrative charges to the 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 $ 9,033 ,781 between governmental activities should be eliminated. Capital projects costs in the amount of $ 12,228 ,005 must be distributed to the related expenditure functions . ' 53 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATE - B . Explanation of Differences Between Governmental Fund Operating Statements and the State- Total Capital Long-term Governmental REVENUES Funds Related Debt Compensated _ Items Transactions Absences Taxes $ 86, 120,084 $ _ $ _ $ _ Licenses and permits 567,403 Intergovernmental 355213 , 140 Charges for services 13 ,683 , 108 Fines and forfeitures 1 ,5849737 Special assessments 3355661 Interest 299997915 Miscellaneous 6, 560 646 Total revenues 147,0643694 EXPENDITURES - Current: General government 18,446,787 (3,355 , 146) Public safety - (273003 ) Ph 4715659048 (560,401 ) 1255916 ysical environment 17,6139489 (966,001 ) Transportation - (729) 19,442,909 (2, 810,514) 13 ,939 Economic environment 583 ,850 696 Human services - 2,681 Culture/Recreation 65178,917 (371 ,533) (31537) 18,378,068 (31 , 150,314) Court related - 61868 5,998,260 184,434 18,331 Debt service : - Principal 2,8811492 _ Interest and fiscal charges 1 639 145 (2, 881 ,492) _ Capital projects 12,228,005 Total expenditures 150,9559970 (3990283779) (218811492) 136 466 Excess of revenues over (under) expenditures (3 , 891 ,276) 39,028,779 2,881 ,492 ( 1369466) OTHER FINANCING SOURCES (USES) Transfers in 9,033 , 781 Transfers out (9, 191 ,651 ) Transfers to paying agent (7, 800,000) - 7, 800, 000 Contributions _ - Lease purchase proceeds - - Debt proceeds 7, 8001000 - (75800,000) Total other financing sources (uses) ( 157, 870) Net change in fund balances (0495146) 39,0281779 2,881 ,492 ( 136,466) Fund balances at beginning of year 1345137,677 222,481 510 (40,667 234) 74,346 Fund balances at end of year $ 130,088,531 $ 26151028,9 $ (37, 785 , 742) $ _ (62 , 120) 54 1 ' MENTS - Continued went of Activities - Continued Accrued Internal Accrued Accrued Reclassifications Interest Deferred Service Grant and Tax Interest Statement and of I Expenses Revenues Funds Revenues Revenues Eliminations Activities $ - $ ' $ - $ 869120,084 567,403 2889951 - - 35,502,091 ( 1 ,738,362) 1159445746 (89,958) _ _ - 1 , 584, 737 I - - _ 245, 703 131 ,938 (343 ,925) - 21787,928 525 - 695619171 (89,958) 132,463 288,951 (343 ,925) ( 1 , 7389362) 14593135863 I (809180) = = 5 ,338, 783 20,323 ,241 (258, 802) (462,000) 4694099761 I 9739633 17,620,392( 11 ,218) = = (370,648) 16,264,468 587,227 3619756 691659603 (24,557) I _ _ (32,239) = = 49679, 859 (831179758) (31 , 740) 65144, 728 (89, 188) - 1 ,5499957 (89, 188) _ - - ( 12,228,005) _ ' (406,996) - - ( 19738 ,362) 106,9479619 89, 188 (89 , 958) 539,459 2889951 (343 ,925 ) - 38 , 3669244 (9, 033 , 781 ) _ 9,033 , 781 ( 157, 870) - ( 157 , 870) I89, 188 (893958) 539,459 2883951 (3439925) - 3892089374 $ _ (2389380) $ 133 ,213 $ 2,917, 158 $ 2,416,097 $ 805,485 $ - $ 322,059, 872 ( 1495192) 43 ,255 3 ,456, 617 2 , 705 , 048 4619560 _ 3601268,246 55 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 3 - STEWARDSHIP, COMPLIANCE , AND ACCOUNTABILITY Budgets and Budgetary Accounting The County uses the following procedures in establishing the budgetarydata 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 . I El (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 . 2; (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 governmental and proprietary fund types . The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. Subsequent to enaction of the ordinances a all governmental and proprietary fund adopting budgets for P P � y types, two new governmental funds were created, the Disabled Access Program and Traffic Education Program special revenue funds . Budgets were not adopted by the Board for these new funds . (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. 56 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 3 - STEWARDSHIP, COMPLIANCE , AND ACCOUNTABILITY - Continued Budgets and Budgetary Accounting - Continued (9) The following is a comparison of the appropriations to total expenses for the proprietary funds for the fiscal year ended September 30 , 2003 : Variance ' Total Positive Appropriations Expenses (Negative) Primary Government ' Enterprise Funds : Solid Waste Disposal District $ 93946 , 789 $ 895899141 $ 193573648 ' Shooting Range 3413270 327 , 645 139625 Golf Course 391979100 2 , 8429907 3549193 County Building 198429933 1 , 706 , 109 1369824 ' CountyUtilities 289644 , 156 25 , 0155125 3 , 6295031 Internal Service Funds : ' Fleet Management 1 ,611 ,068 135013621 1099447 Self Insurance 139119 , 364 1190239112 250965252 Component Unit HousingAuthority 8139689 7803176 339513 ' 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 . 1 . Deposits At September 30 , 2003 , the carrying amount of the Primary Government's deposits , including $ 8 ,000, 000 of non- negotiable CDs , was $23 , 069,490 and the bank balance was $24,919,494 . The carrying amount of the component unit 's deposits totaled $ 1 , 171 ,344 and the bank balance was $ 1 , 181 ,413 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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 . As of September 30, 2003 , the component unit had $ 15 ,622 in a certificate of deposit that will mature in May, 2004 with an interest rate of . 80% . 2 . Accrued Interest Interest earnings on U . S . Treasury Notes and government agency bonds are recorded in the cash and invest- ' ment pool and then allocated to each fund based on each fund ' s average monthly balance . Interest received within 40 days of September 30, in the amount of $299 ,918 , was accrued and allocated to the funds based on their ' average monthly balance for September. 57 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued a 3 . Investments Florida Statutes , the County ' s Investment Policy, and various bond covenants authorize investments in certifi - cates of deposit, money market accounts , savings accounts , repurchase agreements , the Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration, Florida Local Govern- , ment Investment Trust Fund, obligations of the U . S . Government, obligations of government agencies uncon- ditionally guaranteed by the U . S . Government, obligations of the Federal Farm Credit Banks , obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation partici - pation certificates , obligations of the Federal Home Loan Bank, obligations of the Government National Mort- gage Association, obligations of the Federal National Mortgage Association and securities of any management type investment company or investment trust registered under the Investment Company Act of 1940 , 15 U . S . C . ss . 80a- 1 et seq . , provided the portfolio is limited to U . S . Government obligations and to repurchase agree - ments fully collateralized by U . S . Government obligations . The County invested in only these types of instru- ments during the fiscal year. In accordance with generally accepted accounting principles , the County' s investments are categorized in the following schedule to give an indication of the level of custodial credit risk assumed at year end : Category I includes investments that are insured or registered, or for which the securities are held by the County or its agent in the County 's name . Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Gov- ernment Investment Trust Fund, money market accounts and guaranteed investment contract are not categorized since the investments are not evidenced by securities that exist in physical or book entry form . The Local Government Surplus Funds Trust Fund Investment Pool (Pool) is a "2a- 7" like pool, and therefore, the County ' s account balance is used for fair value reporting . All units of local government in Florida are eligible , but not required, to participate in the Pool . In addition to a variety of fixed coupon investments, the Pool also purchases floating rate and adjustable rate securities . These floating rate and adjustable rate securi - ties are used to hedge against interest rate risk and provide diversification to the portfolio . The floating rate and adjustable rate securities all float relative to prevailing short-term interest rates such as LIBOR, Prime , or Fed Funds rates . On September 30, 2003 , the Pool held floating rate securities , either directly or as invested securities lending collateral, at a fair value of$2,236,973 ,000. The Pool also participates insecurities lending programs . As of September 30 , 2003 , the collateral held by the Pool , $5 ,207, 037, 936 in cash and $4,095 ,228 in U . S . Government securities, exceeded the fair value of the securities underlying the agreements . As of September 30, 2003 , the Pool had 794 local government participants with total investments of approximately $ 16. 05 billion. The portfolio 's average maturity was 76 days . The Florida Local Government Investment Trust Fund (Trust) is a professionally managed fund available only to public entities in Florida. The investment policy of the Trust restricts investments to direct obligations of or securities fully guaranteed by the United States ; obligations of certain federal agencies, including collateral- ized mortgage obligations ; repurchase agreements ; corporate bonds ; and commercial paper. As of September 30, 2003 , the Trust had investments, at fair value, of approximately $ 543 .2 million. Of the total investments in the Trust, 9 . 86% was invested in asset backed securities and 9 . 08 % was invested in adjustable rate mortgages . 58 Indian River County, Florida ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 4 - CASH AND CASH EQUIVALENTS - Continued 3 . Investments - Continued Except for the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Govern- ment Investment Trust Fund (Trust), investments are reported at fair value based on the average price obtained from three broker/dealers . Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio. ' Upon issuance of the Water and Sewer Bonds , Series 1993A and 1993B , the County 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 . All of the County 's U. S . Treasury Securities and U. S . Government Agencies are held in trust by the County's custodial ' bank, in the County 's name . Schedule of Investments at September 30, 2003 Category Fair I Value U . S . Treasury Securities $ 1991483226 $ 19 , 1489226 U . S . Government Agencies 115 , 8059686 11558059686 $ 13459539912 $ 134 , 953 , 912 Local Government Surplus Funds Trust Fund 709583 , 337 Florida Local Government Investment Trust Fund 950005000 Guaranteed Investment Contract 3 , 139,285 Total Investments $ 21756769534 NOTE 5 - PROPERTY TAX REVENUES Taxable values for all property are established as of January1 , which is the date of lien, for the fiscal year starting October 1 . Property tax revenues recognized for the 2002-2003 fiscal year were levied in October, 2002 . 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 ofApril 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. ' 59 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 6 - CAPITAL ASSETS Capital asset activity for the year ended September 30 , 2003 was as follows : Primary Government Beginning Ending Balance Additions Deletions Balance Governmental activities : Capital assets , not being depreciated : Land $ 52,0941481 $ 177743 ,974 $ - $ 699838 ,455 Construction in progress 272096, 862 279862,797 ( 12, 1669551 ) 42,7939108 Right -of-way 1 %5562363 479,507 - 11 ,035, 870 PEP ReeFStormwater ponds 3 ,296,055 2799012 - 3 , 5759067 Total capital assets , not being depreciated 93 ,0431761 469365,290 ( 129166, 551 ) 127,2422500 Capital assets , being depreciated : Buildings and improvements g P 53 ,9121346 109284,430 - 6491969776 Equipment 38,5689109 32464,745 ( 19833,390) 40, 199,464 Infrastructure 1512444,993 11129, 836 - 1527574,829 Total capital assets , being depreciated 243 ,9251448 14, 8795011 ( 19833 ,390) 256,9713069 Less accumulated depreciation for: Buildings and improvements ( 1235079099) ( 1 , 115,528) - ( 1396229627) :_ Equipment ( 159057,541 ) (3,8679823) 1 ,8331389 ( 17,091 ,975) Infrastructure (86,8971266) (59072,412) - (91 ,9699678) Total accumulated depreciation ( 114,461 ,906) ( 109055,763) 198335389 ( 122,6841280) Total capital assets , being depreciated , net 129,463 ,542 418239248 ( 1 ) 13492865789 Governmental activities capital assets , net $ 2229507,303 $ 512188,538 $ ( 12, 1669552) $ 26195299289 Business -type activities : �7 Capital assets , not being depreciated : �i Land $ 159889,360 $ 5199581 $ - $ 1624087941 Construction in progress 15 ,366, 148 10, 19%781 (41528 ,710) 21 ,028,219 f' Total capital assets , not being depreciated 31 ,2559508 109710,362 (45528 ,710) 371437, 160 1' Capital assets , being depreciated : Buildings , distribution systems and improvements 224, 123 ,794 8,6309566 - 23227542360 Equipment 12,261 , 107 1 ,4379834 (501 ,405) 13 , 1979536 Total capital assets , being depreciated 23693849901 1 %0%400 (5012405) 2459951 ,896 Less accumulated depreciation for: Buildings , distribution systems and improvements (73 ,926,076) (916052026) - (83 ,5319102) Equipment (85511 ,737) ( 1 ,3109487) 4895554 (9,3321670) Total accumulated depreciation (821437,813) ( 1 %915,513) 489, 554 (92, 863 ,772) Total capital assets , being depreciated , net 153 ,947,088 (8479113) ( 115851 ) 153 ,088, 124 Business -type activities capital assets , net $ 185,2029596 $ 99863 ,249 $ (4,54%561 ) $ 19%525,284 60 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 6 - CAPITAL ASSETS - Continued Depreciation expense was charged to functions/programs of the primary government as follows : rGovernmental activities : General Government $ 19246,400 Public Safety 2,4559844 Physical Environment 69187 Transportation 5,831 , 170 Economic Environment 2,546 Human Services 825025 ' Cultural/Recreation 359,502 Court Related 615134 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 10,956 Total depreciation expense - governmental activities $ 109055,764 ' Business -type activities : Solid Waste Disposal District $ 5597197 Shooting Range 329944 Golf Course 135,297 County Building 249711 County Utilities 10 163364 Total depreciation expense - business -type activities $ 1059159513 NOTE 7 - RESTRICTED CASH AND CASH EQUIVALENTS AND INVESTMENTS Various bond covenants , resolutions and state regulations require that the County restrict cash and cash equiva- lents 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 $ - $ 583 , 790 $ 4 ,470,310 $ - $ 5 ,054 , 100 $ 447355 Renewal and Replacement 3 ,347 , 112 3 ,060 , 594 6 ,407 , 706 8835192 Customer Deposits 641700 - 25047 ,458 2105440 21322 , 598 415492 Capital Construction - 24,3705154 - 241370, 154 ' Closure and Mainte - nance Costs 71211 ,362 7 ,2119362 Tax Escrow - 715833 Total $ 1023 , 174 $ 583 , 790 $ 339948 , 516 $ 210,440 $ 45 ,365 ,920 $ 11040, 872 61 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 8 - PAYABLE FROM RESTRICTED ASSETS Liabilities payable from the County ' s Enterprise Funds restricted assets are as follows : Component Primary Government Unit Solid Waste Other Disposal Golf County Proprietary Housing District Course Utilities Funds Total Authority Accounts payable $ $ - $ 887, 555 $ $ 8879555 $ Retainage payable - 168,388 - 168,388 _ Accrued interest payable - 28 ,398 328 ,002 - 3565400 4,260 Bonds payable (current portion) - 39500 1 ,8553000 - 2,250,000 184,000 Closure & maintenance costs payable 792117362 - 7,211 ,362 Customer deposits 64,700 - 290772421 2103440 2,352, 561 41 ,492 Total $ 712769062 $ 423 ,398 $ 51316,366 $ 210,440 $ 13 ,226,266 $ 229, 752 x Y NOTE 9 - INTERFUND BALANCES Interf ind balances at September 30, 2003 , consisted ofthe following : Due to General Fund from : Nonmajor governmental funds : Federal/State Grants $ 51000 Community Development Block Grant 13 , 000 Total $ 18 , 000 Due to Secondary Roads Construction Fund from : Nonmajor governmental funds : Metropolitan Planning Organization Fund $ 160,000 Homeless Assistance Center 135 ,000 Total $ 295 ,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 : Emergency Services District Fund $ 1923766 Solid Waste Disposal District Fund 77 281 Nonmajor governmental funds : Land Aquisition Bond Funds 2 % 531 Other Funds 2, 813 Total $ 302 , 381 62 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 9 - INTERFUND BALANCES - Continued Amounts due from the General Fund represent excess fees of the constitutional officers remitted to the Board 's Funds 1 subsequent to September 30, 2003 . NOTE 10 - INTERFUND TRANSFERS ' Interfund transfers for the year ended September 30, 2003 consisted of the following : Transfers to General Fund from : Emergency Services District Fund $ 443 , 849 1 Nonmajor governmental funds 271 , 998 Transfers to Transportation Funds from : General Fund 7 ,413 , 988 ' Transfers to Nonmajor Funds from : General Fund 200 , 370 Optional Sales Tax Fund 8009000 1 All other transfers 61 ,446 Total transfers $ 991619651 ' 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 optional sales tax revenues for beach restoration activities which must be accounted for in another fund , and 5) use unre - stricted general fund revenues to subsidize a business activity, the Shooting Range . 63 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 11 - RECEIVABLE AND PAYABLE BALANCES Receivables Receivables at September 30, 2003 , were as follows : Due from Other Total Governmental Activities : Accounts Governments Receivables General $ 7029812 $ 9659651 $ 156689463 Road Improvement Funds - 21 ,250 219250 Secondary roads - 539,012 539,012 Transportation 4, 843 210, 191 2159034 Emergency services 179014 - 175014 Optional sales tax - 1 ,721 ,911 1 , 721 ,911 Other governmental }- 93,968 3643358 4589326 Total - governmental activities $ 818,637 $ 3,822,373 $ 4,641 ,010 Business -type activities : Solid waste $ 2339770 $ - $ 2339770 Golf course 574 9,000 9,574 Utilities 290609026 8881528 219483554 Total - business -type activities $ 2,2941370 $ 897,528 $ 3, 191 ,898 Payables Payables at September 30 , 2003 , were as follows : Salaries and Total Vendors Benefits Retainage ETT es Cnvemrrental Activities : General $ 2, 132,654 $ 88$395 $ 4,474 $ 37025,523 Road Irrproverrnt Funds 405, 149 - 48294 453,443 Secondary roads 544,902 2,383 452, 172 999,457 Transportation 299,629 79653 Z325 Erergency services 424 862 124,990 163,492 - 292,338 Optional sales tax 11738,646 019 502,657 2,242,322 Land Acquisition 1807 1807 Other governmental 1,386,926 77,583 1,4641509 Total-govemrrental activities $ 6,63477M $ 111347942 $ 1,087,505 $ Busmess4ype activities (payable from current assets): Solidcourse Gol $ 486,580 27, 193 $ - $ 513,713 ' ities e 67, 110 7,987 75,097 445,969 72,584 - 518,553 Other enterprise 78 288 - - 7$288 Basiness-type activities (payable fromrestricted assets): Solid WasteLitkies - 887 555 168,388 1,055,943 Total - business type activities 555 1965502 $ 107�761 $ 16$388 $ 2,241,654 64 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES A. Primary Government Business-type Activities ' Recreational (Golf Course) Revenue Refunding Bonds , Series 1993 Purpose - The Series 1993 Bonds were issued to legally defease all of the County ' s outstanding Recreational Revenue Bonds , Series 1985 and Series 1991 . Pledge of Revenue - The revenue bonds are collateralized by a lien on the net revenues derived from the ' operations of the project and racetrack and jai alai fronton funds accruing annually to the County. Bonds Issued - At September 30, 2003 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2003 1993 Recreational Revenue 2 . 80 - 5 . 25 % 9/ 1 / 16 $ 99875 , 000 $ 65735 ,000 Refunding Bonds 3 / 1 and 9/ 1 Less : Current portion 3959000 ' Unamortized bond discount 1919641 Long-Term Portion $ 6 , 1489359 ' Mandatory Redemption - The Series 1993 term bonds due September 1 , 2016 , are subject to mandatory re- demption by lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following 1 schedule : Date Principal Amount 1 September 1 , 2009 $ 5005000 September 1 , 2010 530,000 September 1 , 2011 5555000 September 1 , 2012 580 ,000 September 1 , 2013 610,000 September 1 , 2014 6459000 September 1 , 2015 6759000 September 1 , 2016 470 , 000 Optional Redemption - The revenue bonds , maturing on or after September 1 , 2004 , (except the Series 1993 Term Bonds maturing on September 1 , 2016) are subject to redemption prior to maturity, at the option of the ' County on and after September 1 , 2003 , 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. ' 65 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued 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 Assess - ment Revenue Bonds , Series 1989 and Series 1990, and to provide funds to make certain capital improve- ments 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, 2003 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2003 r Water and Sewer 2 . 60- 6 . 50% Revenue Bonds, 3/ 1 and 9/ 1 2024 $ 45 ,475 , 000 $ 38 , 570 ;000 Series 1993A Less : Current portion 19055 ,000 Unamortized bond discount 1 ,229,234 Long-Term Portion $ 36 285 766 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 : ; k Term Bonds due September 1 , 2008 Date Principal Amount September 1 , 2007 $ 19230 ,000 September 1 , 2008 1 , 3105000 Term Bonds due September 1 , 2011 Date Principal Amount September 1 , 2009 $ 19395 , 000 September 1 , 2010 114755000 September 1 , 2011 15555 , 000 66 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued ' Term Bonds due September 1 , 2015 Date Principal Amount September 1 , 2012 $ 1 , 640 000 September 1 , 2013 157309000 September 1 , 2014 1 , 825 , 000 ' September 1 , 2015 199255000 Term Bonds due September 1 , 2018 Date _Principal Amount September 1 , 2016 $ 25030, 000 ' September 1 , 2017 29135 , 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 ,490 , 000 Term Bonds due September 1 , 2024 ' Date _Principal Amount September 1 , 2021 $ 2 , 625 , 000 September 1 , 2022 2 760 000 ' September 1 , 2023 2 , 9059000 September 1 , 2024 135859000 1 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. Water and Sewer Revenue Bonds Series 1996 Purpose - The Series 199 P 6 Bonds were issued to provide funds to make certain capital improvements to the utility ' system , and to reimburse the County for the purchase of a utility system from the City of Sebastian, Florida. 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 . ' 67 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Bonds Issued - At September 30, 2003 , the revenue bonds consisted of the following : Interest Outstanding at Rates and Original September 30 , Description Date Maturity Issue 2003 Water and Sewer 3 . 80- 5 . 45 % Revenue Bonds , 3/ 1 and 9/ 1 2026 $ 38 , 9003000 $ 34, 190 , 000 Series 1996 Less : Current portion 8005000 Unamortized bond discount 9033039 Long-Term Portion $ 32 ,486, 961 Mandatory Redemption - The Series 1996 term bonds are subject to mandatory redemption prior to maturity, in part (including portions of Bonds) at par plus accrued interest, according to the following schedule : Term Bonds due September 1 , 2016 Date Principal Amount September 1 , 2011 $ 1 , 1255000 September 1 , 2012 1 , 185 , 000 September 1 , 2013 1 , 255 , 000 September 1 , 2014 1 , 320 , 000 September 1 , 2015 1 , 395 ,000 September 1 , 2016 154703000 Term Bonds due September 1 , 2019 Date Principal Amount September 1 , 2017 $ 1 , 550, 000 September 1 , 2018 15635 , 000 September 1 , 2019 13725 , 000 Term Bonds due September 1 , 2026 Date Principal Amount September 1 , 2020 $ 1 , 820, 000 September 1 , 2021 1 , 920 , 000 September 1 , 2022 2 ,0253000 September 1 , 2023 23140 , 000 September 1 , 2024 23255 , 000 September 1 , 2025 25380 ,000 September 1 , 2026 295109000 68 ' Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Optional Redemption - The Series 1996 Bonds maturing on or after September 1 , 2007 , are subject to redemp- tion by the County on or after September 1 , 2006 , in whole or in part, at par plus accrued interest to date of ' redemption, plus a premium ranging from 0% to 2 % depending on the year of redemption . Annual Debt Service Payments - Business - type Activities The annual debt service payments for bonds outstanding at September 30, 2003 , are as follows : 1 Fiscal Year Recreational Revenue Water and Sewer Refunding Water and Sewer Revenue ' Ending Refunding Bonds , Series 1993 Revenue Bonds , Series 1993 Bonds , Series 1996 September 30, Principal Interest Principal Interest Principal Interest 2004 $ 395 ,000 1 3405775 $ 190559000 $ 29083 ,985 $ 800,000 $ 15852,034 ' 2005 4109000 321 ,420 191109000 2,0309180 8359000 1 ,813,634 2006 430,000 300,920 1 , 170,000 119729460 8759000 1 ,772,719 2007 455 ,000 2789990 152305000 1 ,910,450 9209000 1 ,728,969 2008 480,000 255 ,785 193109000 19830,500 965,000 196825969 2009-2013 2 ,775 ,000 8819150 79795 ,000 7,915 ,225 5,650,000 755969962 2014-2018 1 ,790,000 1705250 109165 ,000 555383762 7,3709000 57872,350 ' 2019-2023 13 , 150,000 295575536 95630,000 3,610,750 2024-2026 195859000 83 ,212 7, 145,000 799,975 ' Total $ 657359000 $ 295495290 $ 38,570,000 25 ,922,310 $ 34, 190,000 $ 26, 730,362 Less : ' Current Portion 395,000 1 ,055,000 800000 Unamortized bond discount 191 ,641 17229,234 9039039 Total $ 611485359 $ 295495290 $ 36,285,766 $ 2599229310 $ 325486,961 $ 2657309362 69 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued Governmental Activities General Obligation Bonds Purpose - On November 29, 200 1 , the Board issued the additional $ 11 ,000,000 of General Obligation Bonds, Serres 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 and the Series 2001 bonds are the second. The proceeds of these issues were used to acquire by purchase, interest in environmentally sensitive 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. On July 1 , 2003 , the Board issued $ 7, 800,000 of General Obligation Refunding Bonds, Series 2003 , I The bonds were issued to provide funds, which together with other funds of the County, were used to refund and redeem on the date of closing of the Bonds , 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 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. Bonds Issued - At September 30, 2003 , General Obligation Bonds consisted of the following : Outstanding at Interest Original September 30 , Description Rates and Date Issue 2003 General Obligation 2 . 50%4 . 30% 2001 Series 1 / 1 and 7/ 1 2016 $ 119000,000 $ 9, 925 ,000 General Obligation 1 . 50%- 3 . 00% Refunding 2003 Series 1 / 1 and 7/ 1 2010 $ 7, 800 , 000 $ 7 , 800,000 t 4 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 anytime, on any date at par plus accrued interest and plus a premium ranging between 0% to I % depending on the year of redemption . The General Obligation Refunding Bonds , Series 2003 , are not subject to redemption prior to their maturities . 70 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued ' 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" . ' 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 , 2003 , Spring Training Facility Revenue Bonds consisted of the following : ' Outstanding at Interest Original September 30 , Description Rates and Date Maturi Issue 2003 Spring Training 3 . 30%-5 . 25 % ' Facility 4/ 1 and 10/ 1 2031 $ 16 , 810 , 000 $ 15 ,9905000 ' 71 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued 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 I % 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 $ 68500 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 $ 840 ,000 April 1 , 2019 8909000 April 1 , 2020 930 , 000 April 1 , 2021 9809000 Term Bonds due April 1 , 2027 Date Principal Amount April 1 , 2022 $ 3059000 April 1 , 2023 320, 000 April 1 , 2024 3409000 April 1 , 2025 355 , 000 April 1 , 2026 3759000 April 1 , 2027 390 , 000 Term Bonds due April 1 , 2031 Date Principal Amount - April 1 , 2028 $ 4105000 April 1 , 2029 4305000 April 1 , 2030 4555000 April 1 , 2031 43500 72 ' Indian River County, Florida ' Notes To Financial Statements Year Ended September 30 , 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued A. Primary Government - Continued ' Annual Debt Service Payments - Governmental Activities The annual debt service payments for bonds outstanding at September 30, 2003 , are as follows : ' Fiscal Year General Obligation Refunding General Obligation Bonds Spring Training Facility Bonds ' Ending Bonds 2003 Series 2001 Series 2001 Series September 30, Principal Interest Principal Interest Principal Interest ' 2004 $ 19035 , 000 $ 1865438 $ 610, 000 $ 3699118 $ 475, 000 $ 7549028 2005 11065, 000 1659737 6309000 350, 817 490, 000 7379402 2006 15080, 000 1469238 650, 000 3319918 505, 000 7219233 2007 191059000 1249637 6709000 312,417 520, 000 7049062 2008 191359000 993775 6909000 290, 643 5457000 6859343 2009-2013 293809000 1079700 3 , 9009000 1 , 055,218 35035 , 000 390859453 2014-2018 - - 2, 7759000 240,280 3 , 805 , 000 293079988 ' 2019-2023 - - - - 324259000 11237,225 2024-2028 - - - - 1 , 870, 000 6195250 ' 2029-2031 - - - - 193205000 1329250 Total $ 7, 800, 000 $ 830, 525 $ 9,9259000 $ 2, 950,411 $ 1559909000 $ 101984,234 i 73 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued B . Discretely Presented Component Unit Housing Authority Revenue Bonds 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) , includ- ing 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. Original Revenue Outstanding at Interest Bond September 30, Description Rates and Date Commitment 2003 Indian River County 1 % per annum on HousmgAuthonty the unpaid balance Revenue Bonds : payable September 1 each year Victory Park, Phase I Victory Park, $ 1 , 908 , 000 $ 13057, 000 Phase II Orangewood Park 1 , 908 , 000 1 , 1189000 Apartments 206,400 1 , 363 ,400 $ 5 , 822 ,400 $ 3 , 538 ,400 Less : Current portion 184, 000 Long-term Portion $ 35354,400 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. 74 Indian River County, Florida Notes To Financial Statements ' Year Ended September 30, 2003 ' NOTE 12 - LONG-TERM LIABILITIES - Continued B . Discretely Presented Component Unit - Continued ' Annual Debt Service Payments - Housing Authority The annual debt service payments for bonds outstanding at September 30, 2003 , are as follows : Fiscal Year Ending Payment September 30 , Amounts ' 2004 $ 219 , 384 2005 2199544 2006 21904 ' 2007 219 , 804 2008 2199084 2009 - 2013 190955470 ' 2014 - 2018 1 , 096 , 810 2019 - 2023 5929280 Total 3 , 882 , 060 ' Less : Amount representing interest 343 ,660 Total principal 39538 ,400 Less : Current portion 184 , 000 Total $ 393543400 ' C. 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 County. Outstanding Retired Outstanding ' at During at September 30, Fiscal Year September 30 , 2002 2003 2003 Capital Improvement Revenue Bonds : Series 1980 $ 2 , 520 , 000 $ 190. 000 $ 2 ,330, 000 ' Refunding Revenue Bonds : Series 1992 $ 2 ,215 ,000 $ 695 , 000 $ 1 , 520 , 000 ' 75 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 12 - LONG-TERM LIABILITIES - Continued D . Capital Leases and Notes Payable Governmental Activities The County has entered into several lease-purchase agreements to purchase various types of equipment and furniture with lease terms varying from 24-60 months . 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, 2003 : Board of Year Ending County Tax September 30 , Commissioners Collector Total 2004 $ 203 , 535 $ 52 ,244 $ 2553779 2005 529244 52 ,244 2006 - 529244 52 ,244 2007 - 529244 52 , 244 Thereafter - 39, 183 39 , 183 Total Minimum Lease Payments $ 203 , 535 $ 248 , 159 $ 451 , 694 Less : Amounts representing F interest 9,493 24 , 683 349176 Present Value of Net Minimum Lease Payments $ 1945042 $ 223 476 $ 417, 518 The following is an analysis of the leased property under capital leases : Capitalized Cost Board of Courrty Tax Type of Property Commissioners Collector Total Computer equipment $ - $ 513 , 961 $ 513 , 961 Firetrucks 19310 ,055 - 19310, 055 Total $ 193109055 $ 5139961 $ 1 , 824, 016 Monthly payments for the computer equipment leases are made by the General Fund. Annual payments for the firetruck leases are made by the Emergency Services District Fund . 76 ' Indian River County, Florida Notes To Financial Statements ' Year Ended September 30, 2003 ' NOTE 12 - LONG-TERM LIABILITIES - Continued E. Compensated Absences ' Governmental activities compensated absences are paid by the fund which normally pays the personal services costs of the employee, either the General Fund, the Transportation Fund, the Secondary Roads Fund or the Emergency Services District Fund F. Changes in Long-term Liabilities ' Long-term liability activity for the year ended September 30 , 2003 , was as follows : ' Beginning Ending Due Within Balance Additions Retirements Balance One Year Governmental Activities : ' Bonds payable: - General Obligation Bonds - 1995 Series $ 95290,000 $ - $ (912903000) General Obligation Bonds - 2001 Series 10,520,000 (595 ,000) 999259000 6107000 ' Spring Training Facility Revenue Bonds - - Series 2001 16,4505000 (460,000) 155990,000 475 ,000 General Obligation Refunding Bonds- 2003 Series - 7,8009000 - 75800,000 1 ,0355000 Total bonds payable 36,260,000 7,8009000 ( 10,3453000) 33 ,715 ,000 23120,000 Other liabilities : Compensated absences 336382116 4697527 (3355000) 39772,643 3735000 Capital leases 754,009 (336,491 ) 4175518 255 ,779 Total other liabilities 49392, 125 4695527 (671 ,491 ) 4, 1905161 6283779 Governmental activities longwterm liabilities $ 409652, 125 $ 8 ,2695527 $ ( 11 ,0169491 ) $ 37,9053161 $ 237489779 Business type Activities : Bonds payable: ' Recreational Refunding Revenue Bonds - Series 1993 $ 7, 110,000 $ - $ (3753000) $ 6, 7353000 $ 3953000 Water & Sewer Refunding Revenue Bonds ' - Series 1993A 399575 ,000 - ( 1 ,0059000) 3895705000 130559000 Water & Sewer Revenue Bonds - Series 1996 345950,000 - (7605000) 349190,000 8009000 81 ,635 ,000 - (271407000) 795495 ,000 29250,000 Less : Unamortized bonds discount 2,4371045 - 1139131 293235914 - Totals bonds payable 799197,955 0 (2,0269869) 77, 171 ,086 2 ,250,000 Other liabilities : Compensated absences 5973486 1529492 ( 1005000) 649,978 100,000 ' Total other liabilities 597,486 1529492 ( 100,000) 6493978 1005000 Business-type activities long-term liabilities $ 799795,441 $ 152,492 $ 211263869) $ 7738215064 $ 233505000 77 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2003 NOTE 12 - LONG -TERM LIABILITIES - Continued Y 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 a nursing home, an expanded processing facility, a manufacturing facility, and an educational facility, for a total of four 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 an h' y 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 $ 18,000,000 $ 17,600,000 1999 St. Edward 's School , Inc . — Upper School educational facilities 6,025 ,000 414409763 1997 Hetra Computer & Communications Industries, Inc . (XL Vision, Inc . ) 62 ,000 sq . ft. manufacturing facility 418009000 1 ,600,000 1986 Florida Convalescent Centers, Inc . — 91 -bed skilled and intermediate care nursing home 41080,000 21400,000 1997 Ocean Spray Cranberries, Inc . — expansion of 23 , 000 sq . ft, processing facility Total $ 26,0409763 78 ' Indian River County, Florida orida ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 13 - PROVISION FOR CLOSURE COSTS The SWDD annually obtains updated and revised estimates of total future closure and post-closure costs from ' its consulting engineers . The provision for closure costs reported in the financial statements as operating ex- pense 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 currentlyactive landfill ve areas ( Seg- ment II, C & D) are approximately $3 . 23 million. These costs will be recognized in future periods as the remaining ' capacity is filled. This landfill area is expected to close in three phases . The first phase was closed in 1998 , the second phase is scheduled in the year 2006, and the third phase in the year 2008 . To date, 68 % of the Segment II and 58% of the C & D landfill capacities have been filled. All amounts recognized are based on what it would d 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 , and has done so by fulfilling the requirements of the financial test provision of the regulation . At the same time, the SWDD is making annual deposits to a closure and post-closure cost account to provide for the financing of future closure -related expenditures . The balance in the account for inactive and active landfill areas as of September 30 , 2003 was $ 7,211 , 362 . ' NOTE 14 - DEFINED BENEFIT PENSION PLANS ' A. Florida Retirement System Plan Description : The County ' s employees , except certain firefighters , 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. 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 . 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 earn- ings . ' Florida Statutes Chapter 121 , as may be amended from time to time by the state legislature , determines contri - bution 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 in- formation . That report may be obtained by writing to the Department of Administration, Division of Retire- ment, Cedars Executive Center, Building C , 2639 North Monroe Street, Tallahassee , Florida 323994560 . ' 79 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 14 - DEFINED BENEFIT PENSION PLANS - Continued A. Florida Retirement System - Continued Funding Policy: The FRS has six classes of membership with descriptions and contribution rates in effect during the period ended September 30 , 2002 , as follows (contribution rates are in agreement with the actuarially determined rates) : 1 10/ 1 /02 7/ 1 /03 to 6/30/03 to 9/30/03 Regular Class - Members not qualifying for other classes . 5 . 76% 7 . 39% Senior Management Service Class - Members of senior management who do not elect the optional annuity management program. 6 . 06% 9. 37% Special Risk Class - Members employed as law enforcement officers , firefighters , or correctional officers and meet the criteria set to qualify for this class . 16 , 01 % 18s53 % Special Risk Administrative Support Class - Special risk members who are transferred or reassigned to non-special risk and meet the criteria. 6 . 56% 9. 92 % Elected County Officer ' s Class - Certain elected county officials . 11 . 86% 15 .23 % Deferred Retirement Option Program Members who are eligible for normal retirement that have elected to participate in the deferred retirement option program . 9 . 11 % 9 . 11 Contributions to the FRS for the fiscal year ended September 30, 2003 , were equal to 11 . 53% of the annual covered =1 payroll . Contributions to the FRS for the fiscal years ended September 30, 2001 , 2002, and 2003 , were $6,393 ,467, $6,070, 539 and $ 53941 , 735 respectively, which are equal to 100% ofthe required contribution for each year. 80 ' Indian River County, Florida Notes To Financial Statements ' Year Ended September 30, 2003 NOTE 14 - DEFINED BENEFIT PENSION PLANS - Continued B . Firefighters Defined Benefit Pension Plan ' In October 1981 , the South Indian River County Fire District took over the operations of the City of Vero Beach, Florida ' s Fire Department . Full-time firefighters were given the option of joining the Florida Retire - ment System (FRS ) or remaining in the City ' s plan . Twenty full -time firefighters and all of the volunteers elected to remain in the City ' s plan. Those who joined the FRS received refunds of their contributions from the City ' s plan . Indian River County contributes to the City ' s plan, on behalf of eligible firefighters , which is a single -employer defined benefit pension plan . The City administers the plan, and by statute , retains fiduciary responsibility for this plan. ' The City accounts for the plan in a pension trust fund . The City' s Comprehensive Annual Financial Report (CAFR) includes the required financial statements and required supplementary information for the plan . A copy of the City ' s CAFR may be obtained from the Finance Department of the City of Vero Beach, 1053 20th ' Place , Vero Beach, FL 32960 . Funding Policy and Annual Pension Cost: The City establishes and may amend the contribution requirements of plan members and the City in accordance with Florida Statutes . Indian River County ' s annual pension cost for the most recent actuarial valuation report, as of 2002 , and related information for the plan is as follows : Contribution rates : ' Employee 7% of Compensation State Premium Tax Refund Employer None Required ' Annual Pension Cost $ 292 , 799 Contributions made $ 292 , 799 Actuarial valuation date October 1 , 2003 Actuarial cost method Aggregate Amortization method N/A Remaining amortization period 10 years Asset valuation method 5 year smoothed market Actuarial assumptions: ' Investment rate of return 8 % Projected salary increases 6% Inflation rate 4% Post retirement benefit increases N/A Cost of living increase 2% 81 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 14 - DEFINED BENEFIT PENSION PLANS — Continued B . Firefighters Defined Benefit Pension g Plan — Continued Funding Progress : Actuarial Actuarial Accrued UAAL As % Actuarial Value of Liability (AAL) Unfunded Funded Covered of Covered Valuation Assets Frozen Entry Age AAL (UAAL) Ratio Payroll Payroll Date (a) (b) (b-a) (a/b) (c ) (b-a)/c 10/01 /01 $ 7,3121430 $ 7,8765933 $ 564,503 92 . 8 % $ 86,791 650. 4% 10/01 /02 $ 6 993 1810 $ 7,9821786 $ 989,605 87 . /o 6 $ 633483 1558 . 9% 10/01 /03 $ 6,8231162 $ 8,0141048 $ 19190,886 85 . 1 % $ 629357 1909 . 8% y Annual Pension Cost And Net Pension Obligation Fiscal Year Ending September 30 : 2003 2002 2001 A . Annual Required Contribution (ARC) * $ 164,943 $ 242, 148 $ 234,915 B . Interest on Net Pension Obligation (NPO) ( 16 463) (23 103 ) (387216) C . Adjustment to ARC 54 ( 394) ( 110,335) (229, 101 D . Annual Pension Cost (A+B-C) 202,874 329,380 4259800 t, E . Actual Contributions 2925799 2469373 2365893 F. NPO at beginning of year (205, 783 ) (288, 790) (4779697) i a Increase decrease to NPO D-E ( ) ( ) (899925) 839007 188,907 H . NPO at end of year (F+G) (295,708) (205, 783) (288,790) * Includes expected State contribution . Three -Year Trend Information : Percentage Annual Pension Cost of APC Net Pension Year Ending (APC ) Contributed Obligation „ September 30, 2001 $425 , 800 56% $(288,790) September 30, 2002 $3295380 75 % $(205 , 783 ) September 30, 2003 $202,874 144% $(2959708) 82 ' Indian River County , Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 15 - OPERATING LEASES The County has entered into noncancelable operating leases , both as lessor and lessee. Lease terms vary from 2 to 30 years . Lease revenues totaled $236, 028 and lease expenditures totaled $ 395 , 950 for the year ended September 30 , 2003 . 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 2004 $ 212 ,248 2005 1589176 ' 2006 669750 2007 45 ,200 ' 2008 45 ,200 2009 - 2013 1549750 2014 - 2018 1 , 000 ' 2019 - 2023 800 Total future minimum lease receipts : $ 6849124 The property being leased is included in the statement ofnet assets governmental activities and business-type activities columns and has a carrying value of $7 , 670 , 895 . For fiscal year 2003 , total depreciation expense for depreciable property being leased is $ 435 , 972 . ' B . Future Minimum Lease Payments ' The following is a schedule , by years , of minimum future rentals to be paid by the County for noncancelable operating leases as of September 30 : Year Amount 2004 $ 349,495 2005 340 , 622 2006 242 , 179 2007 1479812 2008 1359074 2009 - 2013 5289775 2014 - 2018 1029525 ' 2019 - 2023 1 , 500 Remaining 85100 ' Total future minimum lease payments : $ 1 , 856 ,082 ' 83 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 16 - FUND EQUITY A. Restricted Net Assets The County has established certain restrictions within the net assets section of the proprietary funds . Restricted net assets at September 30 , 2003 , consist of the following : Component Primary Government Unit Total Primary Housing Golf Course County Utilities Government Authority Restricted for debt service $ 329917 $ 154, 583 $ 187,500 $ 44,355 Restricted for renewal & replacement 0 8839192 Restricted for capital projects 42, 783 , 994 427783 ,994 Restricted for insurance and property tax 0 71 ; 833 Total $ 32,917 $ 42,938,577 $ 42,9719494 $ 999,380 B . Reserved Fund Balances The County has established certain reserves within the fund equity section of the governmental funds . Re- served fund balances at September 30, 2003 , consist ofthe following : Special Revenue Funds : Reserved for Advances to Other Funds : Secondary Roads Construction $ 655 .000 Total $ 65500 Debt Service Funds : Reserved for Debt Service : Land Acquisition Bonds $ 6845016 Spring Training Facility Revenue Bonds 4949232 Total $ 151789248 84 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2003 NOTE 16 - FUND EQUITY - Continued B . Reserved Fund Balances - Continued Capital Projects Funds : Reserved for Capital Projects : Dodgertown Facility $ 912 ,493 Dodgertown Capital Reserve 29052 , 302 Homeless Assistance Center 63 , 589 ' Fellsmere Old School 26 , 060 Optional Sales Tax 329228 , 832 Gifford Road Construction 3 ,4359895 ' Shooting Range 1149612 Total $ 38 , 8339783 NOTE 17 - FUND EQUITY DEFICIT The following funds had a deficit in fund balance at September 30 , 2003 : Fund Deficit Metropolitan Planning Organization $ 249 ,202 Federal/State Grants 315703 Community Development Block Grant 15 , 800 Total Deficit $ 296 , 705 The deficit for all three funds will be eliminated by grant proceeds in the fiscal year 2004 . 85 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 18 - RISK MANAGEMENT General Liability, Property Yand Worker 's Compensation 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 . During a previous fiscal year, the County established a fund to account for risk management called the Self Insurance Fund (an internal service fund) . The risk management program began on November 1 , 1988 , and has provided coverage for the County as follows : 11 / 1 /88 - 10/ 1 /89- 10/ 1 /92- 10/ 1 /94- 10/ 1 /02- 10/ 1 /89 10/ 1 /92 10/ 1 /94 10/ 1 /02 Present Worker 's compensation $ 100, 000 $ 10000 $ 150 , 000 $ 15000 $ 350 , 000 General Liability 10000 5005000 200 , 000 200, 000 2009000 Auto Liability 100,000 5005000 1005000 200, 000 200 , 000 Property Damage 1003000 105000 500 -255000 500 -255000 500 -25 , 000 Error Omissions 259000 25 , 000 2005000 2005000 200, 000 AnnualAggregate 600,000 15000 , 000 1 ,000,000 150005000 1 , 000,000 The County purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss . The County has not incurred any settlements in excess of the insurance coverage 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 deter- mined by projected claims based on historical and actuarial experience. The self insurance plan assumes all risk for claims u to $ 125 000 per individual policy P P , per year, and has purchased a reinsurance otic to cover claims in excess of this I amount. There were no claims in excess of this limit for the 2001 , 2002 , and 2003 fiscal years . The claims liability of $4,581 ,000 reported at September 30, 2003 , is based on the requirements ofgenerally 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 ,991 , 000 wil be liquidated over the next twelve months . 86 Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 18 - RISK MANAGEMENT General Liability, Property and Worker 's Compensation-Continued Current Year Balance at Claims Balance ' Fiscal Year and Changes Claim at Fiscal Begirining in Estimates Payments Year End ' 1989- 1990 $ 415 ,250 $ 866 ,250 $ ( 1679553 ) $ 191139947 1990 - 1991 1 , 113 , 947 456825363 (35467 , 596) 2 ,3289714 1991 - 1992 2 , 328 , 714 394265954 (394669903 ) 2 ,2889765 ' 1992 - 1993 292885765 45474 ,994 (49255 , 815 ) 295079944 1993 - 1994 2 , 5079944 498259081 (4 , 398 , 521 ) 2 ,9349504 1994- 1995 2 , 9349504 492489626 (4 , 8309926) 2 ,3525204 19954996 25352 ,204 55201 ,050 (4 , 990 , 111 ) 2 ,563 , 143 1996- 1997 2 , 5633143 55226 , 091 (594619151 ) 293289083 ' 1997- 1998 293289083 6 , 541 ,439 (55917 , 522) 29952 , 000 19984999 2 , 952 ,000 69598 ,493 (695179493 ) 390339000 1999- 2000 390339000 6 ,4019416 (6 ,407 ,416) 39027 , 000 2000 - 2001 390279000 893229143 (7 , 660 , 143 ) 3 ,6895000 2001 - 2002 3 , 689 ,000 99850 ,070 (99278 , 070) 492619000 ' 2002 - 2003 4 ,2619000 954409074 (99120 , 074) 495819000 Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially determined and at September 30 , 2003 , unrestricted net assets of $2 , 852 ,491 has been designated for this purpose . The County has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30, 2003 , 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 accu- rately quantify the exposure involved given the jury ' s latitude in assessing compensatory and punitive dam - ages , 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 . ' 87 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued B . Contracts and Other Commitments The Board has various contracts and commitments outstanding at September 30, 2003 . In the General Fund, contracts are for the Courtroom Video Equipment Maintenance, Engineering Services for HVAC replacement at the County Administration Building, Sheriif's OFfice, Health Department and Douglas School, and the Administration Building Phone Sytem Upgrade and Maintenance . In the Special Revenue Funds , contracts are for the Beach Preservation Plan, Kings Highway Phase II Improvements and various road paving and drainage projects . In the Capital Projects Funds, contracts are for the Dodgertown Training Facility, New County Administration Building, Public Works Com- plex , Financial Software Implementation and various stormwater projects . In the Enterprise Funds, contracts are for the South County Reverse Osmosis Plant Clearwell Addition, Wetland Mitigation Site Maintenance, Hazardous Waste Collection and various other water and sewer projects . A summary of these projects at September 30, 2003 , is as follows : Special Capital General Revenue Proiects Enterprise Total Total contract price $ 395,506 $ 162955740 $ 30,542,547 $ 17,696,975 $ 64,930,768 Total paid as of x September 30, 2003 98,376 10,730,810 17,662,480 875289563 37,02049 t Remaining obligations at September 30, 2003 $ 297, 130 $ 59564,930 $ 1258803067 $ 91168,412 $ 27,9109539 C . Restatement of Prior Year Balances In previous years, the County calculated the depreciation of roads with a useful life of 50 years . The County should have used a useful life of 30 years . The following schedule reflects the restatement of the Capital Assets - net and the beginning net assets to reflect the correction of the error: Beginning Capital Assets as previously reported $ 2561439 , 898 Restatement : Correction of error concerning useful life 33 932 595 Beginning Capital Assets - net, as restated $ 22295079303 Beginning Net Assets, as previously reported $ 35599929467 Restatement : Correction of error concerning useful life 33 932 595 Beginning Net Assets, as restated $ 3221059, 872 88 Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 19 - COMMITMENTS AND CONTINGENCIES - Continued D . Grants rAmounts 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. 1 NOTE 20 - SUBSEQUENT EVENTS On October 15 , 2003 , the Board issued $ 6 ,445 ,000 of Recreational Revenue Refunding Bonds , Series 2003 . The issuance of the Series 2003 Bonds is authorized by Ordinance No . 95 - 16 of the County, as amended, and other provisions of law, (collectively the "Act") , and Indian River County Resolution 2003 -075 , adopted by the Board on July 8 , 2003 , as amended and supplemented by resolution 2003 -080 , adopted July 22 , 2003 , as amended and supplemented by Resolution 2003 -081 , adopted on August 5 , 2003 . The proceeds of the bonds , together with other r funds of the County, will be used to refund and redeem all outstanding Recreational Revenue Refunding Bonds, Series 1993 , which are currently outstanding in the principal amount of $6, 735 ,000 . r 1 r r r r r r r89 . - . ""r 8+? 4 .su Maur:ra^ - , .. ; „� Y .>.L S`a ,'r . „ 4. -. .. . .. - ✓w ay..bgt� . . . . vivo * Q� ' COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 1 1 1 1 ' 91 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Court Facilities- To account for expenditures for improvements made to court facilities . Financing is provided by addi- tional fees collected by the court system . 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 5 sale of surplus County property. ' 1 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 ZVI 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 docu mentary stamp taxes . 92 1 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 . 1 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 Bequest - 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 . 1 Federal/State Grants - To account for revenues and expenditures of various grants from Federal and State agencies . ' 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 . ' 93 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. Traffic Education Program - To account for the proceeds of an additional $ 3 add-on to traffic fines authorized by County Ordinance . Pro ceeds must be used for traffic education programs . Clerk Special Revenue- To account for the proceeds from a special recording fee to be used for 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. Street Lighting Districts - To account for the costs of providing street lights . Financing is provided by the levying of special assessments , z r 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, F 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 . 94 ' CAPITAL PROJECTS FUNDS 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 Shooting Range- To account for expenditures incurred to construct a public shooting range . Financing is provided by the ' Florida Game and Freshwater Fish Commission and transfers from other 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 . ' Homeless Assistance Center- To account for expenditures incurred in the renova- tion and expansion of the Homeless Assistance Center. Financing is provided by the Department of Housing and Urban Development and transfers from other funds . Fellsmere Old School - To account for expenditures incurred by the restoration of the Fellsmere Old School . Financing is provided by the Department of Environmental Protection and the Department of State . 1 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 . ' 95 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2003 Special Revenue ue Section 8 Court Rental Special Law Facilities Assistance Enforcement ASSETS Cash and cash equivalents $ 1049947 $ 92 , 359 $ 136 , 349 Accounts receivable - 275 - Due from other funds Due from other governments Total Assets $ 1042947 $ 921634 $ 1361349 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ - $ 19291 $ - Retainage payable Due to other funds Accrued interest payable Deferred revenues Total Liabilities - 11291 - Fund Equity : Fund balances : Unreserved (Deficit) 1049947 91 ,343 1367349 Reserved for debt service Reserved for capital projects - Total Fund Equity 1049947 917343 136 ,349 Total Liabilities and Fund Equity $ 1045947 $ 92 , 634 $ 136 ,349 A. h Continued 96 L6 ' 1 1 r 1 1 bZO LL ' $ SSZ OZL $ 869 8Z £ I $ 98 £ 0 £ I $ 9f6 ' 89 $ 069 b £ 090 OOL IZ9 89Z I 9 £ I 0 £ I S £6` 8S 060 £ 090 ` OOL IZ9 ` 89Z` i 9 £ I ` 0 £ I S £6 ` 89 1 b £ £` Zb 96I ` OZ LLO` 09 OSZ b £ £ ` Zb $ 96I ` OZ ` - ' $ LLO 09 $ OSZ $ $ r VZ0 LL $ SSZ OZL $ 869 8Z £ I $ 98 £ 0 £ I $ S £6 8S $ £ ZO` S 966699 £ b8 ` b9 $ 09Z417S9 $ 86968Z £ ` I $ 98 £` 0 £ I $ S £ 6` 89 $ asngd a2.aegaanS juawdolanaQ sau !a ;uawdojana(j ' 2naQ tib jspnojL aaueulpap sKled aa11, anuanag lulaadS 1 1 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2003 Special Revenue SHIP Metropolitan Multi- Low Income Planning Jurisdictional ASSETS Housing Organization Task Force Cash and cash equivalents $ 1 ,270 , 625 $ 31726 $ 597753 Accounts receivable 60 , 000 372 307 Due from other funds _ Due from other governments 1141797 Total Assets $ 1 ,4453422 $ 4 ,098 $ 60,060 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 10,390 $ 76,243 $ Retainage payable - 17,057 Due to other funds - 160, 000 Accrued interest payable _ _ - Deferred revenues ' Total Liabilities 10, 390 2532300 _ Fund Equity: Fund balances : Unreserved (Deficit) 11435 ,032 (249,202) 602060 Reserved for debt service _ Reserved for capital projects _ Total Fund Equity 1 435 032 (249,202) 60,060 Total Liabilities and Fund Equity $ 1 ,445 ,422 $ 4 ,098 $ 60 ,060 Continued 98 Special Revenue Native Uplands Florida Disabled Land Beach Vero Lakes Boating Library Access Acquisition Restoration Estates Improvement Bequests Program $ 7195745 $ 414309372 $ 3725324 $ 4067577 $ 39 ,621 $ 34 ,912 i - - 859 $ 719 , 745 $ 494309372 $ 373 , 183 $ 406 , 577 $ 39 ,621 $ 349912 19654 $ 584 ,680 $ 401 60 , 526 ' 1 ,654 645 ,206 401 718 ,091 357859166 3723782 406 , 577 397621 34 ,912 ' 718 ,091 3 785 166 372 782 406 , 577 39 ,621 34 ,912 $ 7193745 $ 4 ,430 ,372 $ 373 , 183 $ 406 , 577 $ 39 , 621 $ 34 ,912 w 99 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2003 Special Revenue Federal & East Community- State Gifford Development ASSETS Grants Stormwater Block Grant Cash and cash equivalents $ 15501 $ 2 , 814 $ 519 Accounts receivable Due from other funds - 16 _ Due from other governments - 129481 Total Assets $ 1 , 501 $ 2 , 830 $ 13 ,000 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 28 ,204 $ - $ 15 , 800 Retainage payable _ Due to other governments Accrued interest payable _ - Deferred revenues Total Liabilities 33 ,204 - 28 , 800 Fund Equity: Fund balances : Unreserved (Deficit) (313703 ) 2 830 ( 15 , 800) Reserved for debt service _ Reserved for capital projects _ z Total Fund Equity (319703 ) 2 830 ( 15 , 800) Total Liabilities and Fund Equity $ 11501 $ 2 , 830 $ 13 ,000 I3 l 4'. Continued 100 Debt Special Revenue Service Traffic Clerk Sheriff Street Spring Education Special Special Lighting Training Program Revenue Revenue Districts Facility Bonds $ 42 ,785 $ 8575821 $ 1 ,462 ,488 $ 417 , 541 $ 8355621 ' = 9 22 ,335 - = 1 , 928 35 ,625 $ 429785 $ 8575830 $ 1 ,4849823 $ 419 ,469 $ 871 ,246 1 ' $ $ 4205560 $ 14 ,343 $ 13 ,679 $ = 377,014 - - 59875 - - 420 , 560 209218 137679 3775014 42 ,785 437,270 19464 ,605 4055790 - ' 494 ,232 425785 4373270 194649605 405 , 790 494 ,232 $ 425785 $ 857, 830 $ 1 ,484 , 823 $ 4199469 $ 8719246 1 1 1 101 Indian River County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30 , 2003 u Debt Service Capital Projects Land Dodgertown Acquisition Capital Gifford Road ASSETS Bonds Reserve Construction Cash and cash equivalents $ 6547486 $ 2 , 0523302 $ 31435 , 895 Accounts receivable 24 _ Due from other funds 29 ,531 Due from other governments Total Assets $ 684 ,041 $ 21052 ,302 $ 3 ,4351895 LIABILITIES AND FUND EQUITY T Liabilities : Accounts payable $ 25 Retainage payable Due to other funds _ Accrued interest payable Deferred revenues Total Liabilities 25 Fund Equity : Fund balances : KI Unreserved (Deficit) _ Reserved for debt service 684 ,016 Reserved for capital projects 2 .052302 3 .435 , 895 Total Fund Equity 684 ,016 _ 2 ,052 ,302 3 .435 , 895 i Total Liabilities and Fund Equity $ 684 ,041 $ 2 ,0527302 $ 3 , Y. 435 , 895 Continued 102 Capital Projects Homeless Total Nonmajor Shooting Dodgertown Assistance Fellsmere Governmental Range Facility Center Old School Funds $ 1145612 $ 912 ,493 $ 41292 $ 247 , 860 $ 20 , 951 ,462 = = 1545340 32 ,334 - 194 ,297 - 364 , 358 $ 1149612 $ 9125493 $ 1989589 $ 247, 860 $ 21 , 502 ,494 $ 969800 $ 113869926 77, 583 135 ,000 - 3139000 3779014 125 ,000 130 , 875 1359000 221 , 800 29285 ,398 11 ,433 , 897 ' - - - 151789248 1149612 912 ,493 63 , 589 264060 6 ,604 ,951 114 ,612 912 ,493 63 , 589 26 ,060 193217 , 096 $ 1142612 $ 912 ,493 $ 198 , 589 $ 2473860 $ 21 , 502 ,494 ' 103 Indian River County, Florida Combining Statement of Revenues , Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2003 Special Revenue Section 8 Court Rental Special Law REVENUES Facilities Assistance Enforcement Taxes $ _ $ _ $ Intergovernmental - 1 ,344 , 115 _ Charges for services 106 , 586 129 Fines and forfeitures - - 63 , 563 Special assessments _ Interest 23305 433 1 ,757 Miscellaneous Total revenues 108 , 891 19344 ,677 65 ,320 EXPENDITURES Current : General government _ Public safety - - 8 , 572 Physical environment _ _ Transportation Economic environment Human services - 1 ,323 ,402 Culture/Recreation Court related 17, 800 _ Debt service : - Principal Interest _ Capital projects _ Total expenditures 17, 800 1 , 323 ,402 8 , 572 Excess of Revenues Over (Under) Expenditures 91 , 091 21 ,275 56 ,748 _ OTHER FINANCING SOURCES Transfers in 14 , 312 Transfers out (54 ,000) - (30 ,364 ) Transfer to paying agent Debt proceeds Total other financing sources (uses) (54,000) - ( 169052 ) Net change in fund balances 379091 21 ,275 40 ,696 Fund balances at beginning of year 67, 856 70 ,068 95 ,653 Fund balances at end of year $ 104 ,947 $ 91 ,343 $ 136 ,349 Continued 104 ' S ecial Revenue Tree ' Parks Ordinance Tourist 911 Drug Development Fines Development Surcharge Abuse 482 , 582 $ 511 ,294 $ _ 1409568 139, 827 14 , 550 = = 109781 2 ,095 25788 26 ,699 11 , 558 953 33 _ 2 ,095 179338 509 ,281 6633453 1519561 - _ - 3115570 _ 118 , 839 93 , 722 - 1229290 279002 5679958 122 ,290 27,002 567,958 311 , 570 2129561 ' ( 1205195 ) (9 , 664 ) 58 ,677 - ) 3519883 (61 ,000 ) ' - 42 , 500 ( 157,000) _ ( 157,000) 42 . 500 ( 120 , 195 ) (9,664) (589677) 194 , 883 ( 18 , 500) _ 179, 130 139 , 800 - 153279298 5053177 533190 ' $ 58 ,935 $ 1309136 $ 19268 ,621 $ 700 , 060 $ 349690 ' 105 Indian River County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2003 Special Revenue SHIP Metropolitan Multi- Low Income Planning Jurisdictional Housing Organization Task Force REVENUES Taxes $ - $ $ Intergovernmental 1 , 016 , 773 277,470 Charges for services 255 , 036 78 Fines and forfeitures _ - Special assessments 47,294 Interest 1 Miscellaneous ,279 22 , 838 936 t, Total revenues 1 ,294,647 278 ,484 48 ,573 EXPENDITURES Current : General government - 565 , 310 Public safety - Physical environment 269050 Transportation Economic environment - - Human services 979, 836 Culture/Recreation _ - Court related _ - Debt service : - Principal Interest - Capital projects - - Total expenditures 979, 836 565 , 310 26, 050 Excess of revenues over (under) expenditures 314 , 811286 826 ( ) 22, 523 OTHER FINANCING SOURCES Transfers in Transfers out Transfer to paying agent ( 16, 770) Debt proceeds - Total other financing sources (uses) ( 16 , 770) Net change in fund balances 314, 811 (286 , 826) 5 753 Fund balances at beginning of year 191209221 37,624 54,307 Fund balances at end of year $ 1 ,4359032 $ (249,202) $ 60 ,060 Continued 106 Snecial Revenue Native Uplands Florida Disabled Land Beach Vero Lakes Boating Library Access Acquisition Restoration Estates Improvement Bequests Program ' $ $ 482 ,582 $ - $ 61453 ,099 50 ,000 74, 872 705036 3 , 090 75 , 694 12 , 850 96 , 840 5 , 862 7 ,265 44 642 ' 220, 822 - - - 2615306 - 3033708 79032 , 521 1319556 82 , 137 2615350 39732 529250 ' - - 4 ,053 ' = 95585 , 824 975 508 = 525250 9 , 585 , 824 49053 975 508 2515458 (21553 ,303 ) 127 503 81 1 2 6 2603842 39732 ' - 800,000 (29786) 800 ,000 (29786) 2515458 ( 1 , 753 ,303 ) 1249717 815162 2609842 31732 4669633 595385469 2489065 325 ,415 (2219221 ) 319180 ' $ 7189091 $ 3 , 7859166 $ 372 , 782 $ 406 , 577 $ 39 , 621 $ 349912 ' 107 Indian River County, Florida Combining Statement of Revenues , Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2003 Special Revenue Federal & East Community- State Gifford Development REVENUES Grants Stormwater Block Grant Taxes Intergovernmental 148 , 752 - 19 ,298 Charges for services _ _ Fines and forfeitures Special assessments - 15459 Interest 8 45 t Miscellaneous - Total revenues 1485760 1 , 504 19,298 EXPENDITURES Current: General government _ Public safety _ Physical environment Transportation - Economic environment 423655 - 35 ,098 Human services 1361290 _ Culture/Recreation 39455 } Court related Debt service : - - Principal Interest - Capital projects _ Total expenditures 1825400 - 359098 Excess of revenues over (under) expenditures (335640) 1 504 ( 15 , 800) OTHER FINANCING SOURCES Transfers in Transfers out - ( 13 ) Transfer to paying agent _ Debt proceeds _ Total other financing sources (uses) - ( 13 ) _ Net change in fund balances (33 ,640) 1 ,491 ( 15 , 800) Fund balances at beginning of year L937 1 ,339 Fund balances at end of year $ (31 , 703 ) $ 2 , 830 $ ( 15 , 800) Continued 108 ' Debt Special Revenue Service ' Traffic Clerk Sheriff Street Spring Education Special Special Lighting Training Program Revenue Revenue Districts Facility Bonds $ _ $ $ - $ - $ 3219721 97 ,206 - 927, 504 181 ,263 470 , 906 ' 42 , 563 = 318 , 185 _ 168 , 550 222 13 , 531 17 , 136 9 , 193 13 ,433 ' - - 29220 _ 42 , 785 1942794 903 ,433 1795963 1 ,262 , 658 ' - 603 ,664 5679273 - - - 154 , 865 _ 4607000 762 , 077 ' - 6039664 5673273 154 , 865 152225077 42 , 785 (408 , 870) 336 , 160 259098 405581 ' - - 47 , 134 ( 149312 ) (67065 ) 329822 (6 ,065 ) ' 425785 (408 , 870) 368 ,982 19,033 40 , 581 - 8461140 11095 ,623 3869757 453 ,651 $ 42 , 785 $ 437,270 $ 194649605 $ 405 , 790 $ 4949232 1 109 Indian River County, Florida Combining Statement of Revenues , Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30 , 2003 Debt Service Capital Projects Land Dodgertown Acquisition Capital Gifford Road REVENUES Bonds Reserve Construction Taxes $ 215959265 $ _ $ Intergovernmental _ Charges for services Fines and forfeitures _ _ - Special assessments - Interest 48 ,760 215306 71 ,085 Miscellaneous 1923405 _ Total revenues 2 , 836,430 21 ,306 71 ,085 EXPENDITURES Current : General government 259,041 _ Public safety Physical environment Transportation Economic environment Human services _ _ - Culture/Recreation Court related Debt service : Principal 2 ,085 ,000 Interest 842 , 775 Capital projects - - 1 .913 Total expenditures 39186 , 816 - 12913 Excess of revenues over (under) expenditures (3509386) 215306 69, 172 OTHER FINANCING SOURCES Transfers in Transfers out (52, 134) Transfer to paying agent (7, 800 ,000) Debt proceeds 7, 8009000 Total other financing sources (Uses) (523134 ) _ Net change in fund balances (402, 520) 21 ,306 69, 172 Fund balances at beginning of year 1 ,0869536 220302996 313665723 Fund balances at end of year $ 6849016 $ 2 ,052 ,302 $ 31435 , 895 Continued 110 1 ' Capital Projects Homeless Total Nonmajor Shooting Dodgertown Assistance Fellsmere Governmental Range Facility Center Old School Funds $ $ $ $ - $ 413937444 194 ,297 975948 10 ,981 , 729 _ 19084 ,034 _ - - 5009026 ' - - - 245 , 703 21645 44 , 810 2 , 346 13500 4439164 75 676 , 861 23645 445810 1965643 999523 18 ,324 ,961 19739, 585 _ 720, 734 52 ,250 158 ,918 77, 753 _ - - 29533 ,250 _ - - 1093087012 ' - 17, 800 _ - - 2 , 545 ,000 - - 196049852 19,310 4 , 1305745 361 , 756 135 ,971 4 ,6499695 19, 310 4 , 130, 745 3619756 135 ,971 245407, 849 ' ( 16 ,665 ) (490859935 ) ( 165 , 113 ) (369448 ) (6 ,082 , 888 ) 903 , 946 _ (3335444) (7, 800 ,000) 75800, 000 570 , 502 ( 16 , 665 ) (4 ,085 ,935 ) ( 165 , 113 ) (36 ,448) (5 , 5121386) 1319277 4 ,9989428 2287702 629508 24 , 729 482 $ 1149612 $ 9129493 $ 633589 $ 269060 $ 199217,096 ' 111 Indian River County, Florida Budgetary Comparison Schedule Court Facilities For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amount (Negative) Charges for services $ 71 ,250 $ 106 , 586 $ 35 , 336 Interest 950 2 , 305 1 , 355 Total revenues 72 ,200 108 891 36, 691 EXPENDITURES Court related 18 ,200 17, 800 400 Total expenditures 189200 175800 400 Excess of revenues over : (under) expenditures 543000 915091 375091 _- OTHER FINANCING SOURCES Transfers out (54 , 000) (54 , 000) _ Total other financing sources (uses) (549000) (54 ,000) _ Net change in fund balances - 37, 091 37,091 Fund balances at beginning of year - 675856 67, 856 Fund balances at end of year $ - $ 104, 947 $ 104,947 112 Indian River County, Florida Budgetary Comparison Schedule Section 8 Rental Assistance For the Year Ended September 30, 2003 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 1 ,4389738 $ 193449115 $ (94 , 623 ) Charges for services 129 129 Interest 277 433 156 Total revenues 19439 , 015 193443677 (949338 ) ' EXPENDITURES Human services 1 ,439 , 015 1 , 323 ,402 1159613 Total expenditures 1 ,4395015 1 , 3235402 1157613 ' Net change in fund balances _ 21 ,275 21 ,275 Fund balances at beginning of year - 70 , 068 70 , 068 Fund balances at end of year $ - $_ 91 , 343 $_ 915343 ' 113 Indian River County, Florida Budgetary Comparison Schedule Special Law Enforcement For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Fines and forfeitures 38 , 938 63 , 563 Interest 24, 625 Total revenues 1 , 757 1 , 757 38 , 938 65 , 320 26, 382 EXPENDITURES Public safety 8 , 574 8 , 572 Total expenditures 2 8 , 574 8 , 572 2 Excess of revenues over (under) expenditures 309364 56, 748 26 , 384 OTHER FINANCING SOURCES Transfers in Transfers out 14 , 312 14 , 312 (303364) (30, 364) Total other financing sources (uses) 30 364 ( � ) ( 169052) 143312 Net change in fund balances - 40,696 40 , 696 Fund balances at beginning of year - 955653 95 , 653 Fund balances at end of year $ - $ 1369349 $ 136,349 114 Indian River County, Florida Budgetary Comparison Schedule Parks Development For the Year Ended September 30 , 2003 Variance ' Final Actual Positive REVENUES Budget Amounts (Negative) Interest $ _ $ 2 , 095 $ 25095 Total revenues 2 , 095 2 , 095 EXPENDITURES Culture/Recreation 150,000 122 ,290 27 , 710 Total expenditures 150 , 000 122 ,290 27 , 710 Net change in fund balances ( 150 , 000) ( 120, 195 ) 295805 Fund balances at beginning of year 150 , 000 1799130 29, 130 Fund balances at end of year $ - $ 58 , 935 $ 589935 ' 115 Indian River County, Florida Budgetary Comparison Schedule Tree Ordinance Fines For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Fines and forfeitures $ - $ 145550 $ 145550 Interest - 21788 2 , 788 Total revenues - 17338 17, 338 EXPENDITURES Culture/Recreation 75 , 000 27, 002 47, 998 Total expenditures 755000 27,002 47, 998 is Net change in fund balances (75 , 000) (9 , 664) 65 , 336 Fund balances at beginning of year 75 , 000 1399800 64 , 800 Fund balances at end of year $ - $ 130 , 136 $ 130 136 116 r Indian River County, Florida Budgetary Comparison Schedule Tourist Development For the Year Ended September 30, 2003 r r Variance Final Actual Positive Budget Amounts (Negative) REVENUES Taxes $ 513 , 000 $ 482 , 582 $ (30 ,418) Interest 359625 269699 (89926) Total revenues 5489625 509 ,281 (39, 344) r EXPENDITURES Culture/Recreation 630 , 393 567, 958 62 ,435 Total expenditures 630, 393 567 , 958 629435 Net change in fund balances (81 , 768 ) (589677) 239091 Fund balances at beginning of year 81 , 768 19327, 298 19245 , 530 � Fund balances at end of year $ - $ 1 ,2689621 $ 1 ,268 , 621 r r r r r r r r117 Indian River County, Florida Budgetary Comparison Schedule 911 Surcharge For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 4803700 $ 511 ,294 $ 303594 Intergovernmental 18 , 000 140, 568 Interest 122 , 568 Miscellaneous 4, 181 11 , 558 79377 Total revenues 33 33 663 502 , 881 9453 160, 572 EXPENDITURES General government 347, 038 311 , 570 Total expenditures 35 ,468 347, 038 311 , 570 35 ,468 Excess of revenues over } (under) expenditures 155 , 843 3519883 196, 040 OTHER FINANCING SOURCES Transfers out ( 157, 000) _ ( 157, 000) Total other financing sources (uses) ( 157, 000) ( 157, 000) _ Net change in fund balances ( 13157) 1943883 196,040 Fund balances at beginning of year 11157 5053177 504 , 020 Fund balances at end of year $ - $ 700, 060 $ 7003060 118 Indian River County, Florida Budgetary Comparison Schedule Drug Abuse For the Year Ended September 30, 2003 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 1519357 $ 1395827 $ ( 119530) Fines and forfeitures 6 ,650 109781 4 , 131 Interest 2 , 000 953 ( 1 ,047) ' Miscellaneous 7 , 125 - (79125 ) Total revenues 1679132 1519561 ( 15 , 571 ) EXPENDITURES Public safety 118 , 839 1189839 - Human services 95 , 592 93 , 722 1 , 870 Total expenditures 2149431 2129561 19870 Excess of revenues over (under) expenditures (47 ,299) (619000) ( 139701 ) OTHER FINANCING SOURCES Transfers In 47 ,299 42 , 500 _ 44799) Total other financing sources (uses) 479299 429500 (4 , 799) Net change in fund balances - ( 189500) ( 18 , 500) Fund balances at beginning of year - 53 , 190 539190 Fund balances at end of year $ - $ 34,690 $ 349690 119 Indian River County, Florida Budgetary Comparison Schedule SHIP-Low Income Housing For the Year Ended September 30, 2003 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Intergovernmental $ 969, 038 $ 19016 , 773 $ 47, 735 Charges for services 225 , 000 2553036 303036 Interest - 22 , 838 Total revenues 229838 19194, 038 1 ,294 , 647 10009 EXPENDITURES Human services 151943038 979, 836 2149202 Total expenditures 1 , 194 , 038 9799836 214, 202 Net change in fund balances - 3145811 314 , 811 Fund balances at beginning of year - 19120 ,221 1 , 120 ,221 Fund balances at end of year $ - $ 1 ,435 , 032 $ 1 ,4355032 t; 120 Indian River County, Florida Budgetary Comparison Schedule Metropolitan Planning Organization For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 6159043 $ 2775470 $ (337 , 573 ) Charges for services 78 78 Interest - 936 936 Total revenues 615 , 043 2789484 (336 , 559) EXPENDITURES General government 615 , 043 5655310 49 , 733 Total expenditures 615 ,043 5659310 4% 733 Net change in fund balances - 286 826 286 826 Fund balances at beginning of year - 379624 37, 624 Fund balances at end of year $ - $ (249 ,202 ) $ (249 ,202) 121 Indian River County, Florida Budgetary Comparison Schedule Multi-Jurisdictional Law Enforcement For the Year Ended September 30 , 2003 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Fines and forfeitures $ 42 , 820 $ 479294 $ 4 ,474 Interest - 11279 13279 _ Total revenues 425820 48 , 573 59753 EXPENDITURES Public safety 269050 269050 Total expenditures 265050 26 , 050 _ Excess of revenues over (under) expenditures 16 , 770 22 , 523 5 , 753 OTHER FINANCING SOURCES Transfers out ( 163770) ( 165770) _ Total other financing sources (uses) ( 165770) ( 169770) _ Net change in fund balances - 5 , 753 5 , 753 Fund balances at beginning of year - 54, 307 549307 Fund balances at end of year $ - $ 60, 060 $ 605060 122 Indian River County, Florida Budgetary Comparison Schedule Native Uplands Land Acquisition For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Charges for services $ = $ 709036 $ 709036 Interest 12 , 850 12 , 850 Miscellaneous 220 , 823 2205822 ( 1 ) Total revenues 220 , 823 303 , 708 82 , 885 EXPENDITURES Physical environment 2359823 52 ,250 1835573 Total expenditures 235 , 823 52 ,250 183 , 573 Net chane in fund balances g ( 15 , 000) 2515458 2665458 rFund balances at beginning of year 15 , 000 4665633 4515633 ' Fund balances at end of year $ - $ 7189091 $ 718 , 091 r 123 Indian River County, Florida Budgetary Comparison Schedule Beach Restoration For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 513 , 000 $ 482 , 582 (305418)$ Intergovernmental Interest 8 , 0399136 6,4539099 ( 1 , 586 , 037) Total revenues 96 , 840 96 , 840 8 , 5522136 730329521 ( 1 , 159, 615) EXPENDITURES Culture/Recreation 12 ,497 624 Total expenditures 9, 585 824 2 , 911 800 12,4979624 9, 5859824 29911 , 800 Excess of revenues over (under) expenditures 3 , 945 ,488 ( ) (2, 553 , 303 ) 1 ,392 , 185 OTHER FINANCING SOURCES Transfers in 800, 000 Total other financing sources 800,000 _ 800, 000 800,000 _ Net change in fund balances (39145 ,488) ( 1 , 7539303 ) 1 392 185 , Fund balances at beginning of year 3 , 145 488 5 , 538 ,469 _ 2 , 392 981 Fund balances at end of year $ - $_ 3 . 785 166 $ 3 , 785 166 124 ' Indian River County, Florida Budgetary Comparison Schedule Vero Lake Estates For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 259000 $ 509000 $ 25 , 000 Special assessments 739661 75 , 694 2 , 033 Interest 4 , 881 55862 981 Total revenues 103 , 542 131 , 556 289014 ' EXPENDITURES Physical Environment 1419037 - 1419037 Transportation 749390 4 , 053 709337 Total expenditures 2159427 4 , 053 211 , 374 Excess of revenues over (under) expenditures ( 1119885 ) 1273503 239 , 388 OTHER FINANCING SOURCES Transfers out (49152) (2 , 786) 19366 Total other financing sources (uses) (43152) (2 , 786) 1 ,366 Net change in fund balances ( 116 , 037) 124 , 717 2405754 Fund balances at beginning of year 116,037 2489065 132 , 028 Fund balances at end of year $ - $ 3725782 $ 3729782 125 Indian River County, Florida Budgetary Comparison Schedule Florida Boating Improvement Program For the Year Ended September 30, 2003 k . Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ - $ 749872 $ 743872 Interest - 7 ,265 Total revenues 7,265 82 , 137 823137 4i XPENDITURES Culture/Recreation 30, 000 975 Total expenditures 29, 025 30, 000 975 29, 025 Net change in fund balances (305000) 81 , 162 111 , 162 Fund balances at beginning of year 30 000 325 ,415 - 295 ,415 Fund balances at end of year $ 406, 577 $ 4K577 L 126 ' Indian River County, Florida Budgetary Comparison Schedule Library Bequests For the Year Ended September 30, 2003 ' Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 44 $ 44 Miscellaneous 89000 2619306 253 , 306 Total revenues 8 , 000 261 , 350 253 , 350 EXPENDITURES Culture/Recreation 8 , 000 508 73492 ' Total expenditures 85000 508 79492 Net change in fund balances - 260, 842 260, 842 Fund balances at beginning of year - (221 ,221 ) (221 ,221 ) Fund balances at end of year $ - $ 39 , 621 $ 39 , 621 127 Indian River County, Florida Budgetary Comparison Schedule Federal/State Grants For the Year Ended September 30 , 2003 73 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 6639663 $ 148 , 752 $ (5145911 ) Interest 12 ,290 8 ( 129282) Miscellaneous _ 79, 681 (79, 681 ) Total revenues 755 , 634 148 , 760 (606, 874) EXPENDITURES Economic Environment 55 , 000 42 , 655 12, 345 Human services 550, 634 136 ,290 414, 344 Culture/Recreation 1509000 3 ,455 Total expenditures 146; 545 755 , 634 1829400 573 ,234 - Net change in fund balances - (33 , 640) (33 , 640) Fund balances at beginning of year - 1 , 937 1 , 937 Fund balances at end of year $ - $ (319703 ) $ (313703 ) 128 Indian River County, Florida Budgetary Comparison Schedule East Gifford Stormwater For the Year Ended September 30, 2003 Variance ' Final Actual Positive REVENUES Budget Amounts (Negative) Special assessments $ 1 , 995 $ 1 ,459 $ Interest - (536) Total revenues 45 45 19995 15504 (491 ) ' EXPENDITURES Transportation 1 , 980 _ Total expenditures - 1 , 980 1 , 980 1 , 980 Excess of revenues over (under) expenditures 15 1 , 504 1 ,489 OTHER FINANCING SOURCES Transfers out ( 15 ) ( 13 ) Total other financing sources (uses) ( 15 ) _ ( 13 ) 2 Net change in fund balances - 1 491 1 ,491 Fund balances at beginning of year - 1 , 339 1 , 339 Fund balances at end of year $ - $ 29830 $ 2 , 830 r 129 Indian River County, Florida Budgetary Comparison Schedule Community Development Block Grant For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 750 000 $ 199298 $_ 730 702 Total revenues 750 , 000 t 19,298 (7303702) EXPENDITURES Economic Environment 750, 000 Total expenditures — 35 , 098 714 , 902 750, 000 355098 714 , 902 Excess of revenues over (under) expenditures - ( 15 , 800) ( 15 , 800) Net change in fund balances - ( 15 , 800) ( 15 , 800) Fund balances at beginning of year Fund balances at end of year $ - $ ( 159800) $ ( 15 , 800) 130 Indian River County, Florida Budgetary Comparison Schedule Clerk Special Revenue For the Year Ended September 30, 2003 Variance Final Actual Positive ' Budget Amounts (Negative) REVENUES Charges for services $ 1009000 $ 181 ,263 $ 815263 Interest - 13 . 531 13 . 531 Total revenues 100 , 000 1945794 949794 EXPENDITURES General government 8059000 603 , 664 201 , 336 Total expenditures 805 , 000 603 ,664 201 , 336 Net change in fund balances (7059000) (408 , 870) 2965130 Fund balances at beginning of year 7059000 8465140 141 , 140 ' Fund balances at end ofear $ Y - $ 4379270 $ 4379270 131 Indian River County, Florida Budgetary Comparison Schedule Sheriff Special Revenue For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 97, 000 $ 97,206 $ 206 Charges for services 375 , 000 470, 906 Fines and forfeitures . 95 , 906 2003000 3183185 118 , 185 Interest 65000 17, 136 Total revenues - 11 , 136 678 , 000 9035433 225 ,433 EXPENDITURES Public safety 7251134 567,273 157, 861 Total expenditures 7255134 567 ,273 1579861 Tk Excess of revenues over (under) expenditures (47, 134) 336 , 160 383 ,294 OTHER FINANCING SOURCES Transfers in 479134 475134 Transfers out - ( 143312) ( 145312) Total other financing sources (uses) 47 134 32 , 822 ( 149312) Net change in fund balances - 368 , 982 368 , 982 Fund balances at beginning of year - 1 , 095 ,623 1 , 095 , 623 Fund balances at end of year $ - $ 1 ,464 ,605 $ 1 ,464 , 605 132 Indian River County, Florida ' Budgetary Comparison Schedule Street Lighting Districts For the Year Ended September 30 , 2003 Variance ' Final Actual Positive REVENUES Budget Amounts (Negative) Special assessments $ 163 , 010 $ 168 , 550 $ 5 , 540 Interest 9 , 345 % 193 ( 152) Miscellaneous 71570 _ 29220 _ (59350) Total revenues 179 , 925 179, 963 38 EXPENDITURES Transportation 1749848 1549865 199983 Total expenditures 1749848 1549865 199983 IExcess of revenues over (under) expenditures 55077 25 , 098 20, 021 OTHER FINANCING SOURCES Transfers out (79106) (6 , 065 ) 1 041 Total other financing sources (uses) (75106) (6 , 065 ) 19041 ' Net change in fund balances (29029) 1 % 033 219062 Fund balances at beginning of year 2 , 029 3869757 3845728 Fund balances at end of year $ - $ 405 , 790 $ 405 , 790 1 133 Indian River County, Florida Budgetary Comparison Schedule Spring Training Facility Bonds For the Year Ended September 30, 2003 i Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 342, 000 $ 321 , 721 m $ Intergovernental (20,279) Interest 881 , 125 927, 504 46, 379 Total revenues 23 , 953 133433 ( 10, 520) 19247, 078 19262 , 658 15 , 580 EXPENDITURES Debt service : Principal 4 4609000 460, 000 Interest 7875078 762 , 077 Total expenditures 25 , OQ1 1 ,247, 078 1 ,222, 077 25 , 001 Excess of revenues over (under) expenditures 40, 581 409581 Net change in fund balances 40, 581 40, 581 Fund balances at beginning of year - 453 ,651 453 , 651 Fund balances at end of year $ - $ 494,232 $ 494,232 134 Indian River County, Florida ' Budgetary Comparison Schedule Land Acquisition Bonds For the Year Ended September 30, 2003 i i Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 25559 , 102 $ 255959265 $ 36 , 163 Interest 479500 48 , 760 1 ,260 Miscellaneous 192 .405 1925405 ' Total revenues 297999007 2 , 8365430 379423 EXPENDITURES General government 272 ,404 259 , 041 135363 Debt service : Principal 2 , 085 , 000 2 , 085 , 000 - Interest 862 ,403 842 , 775 199628 Total expenditures 3 ,219, 807 3 , 186 , 816 325991 Excess of revenues over (under) expenditures (4205800) (3505386) 70 ,414 OTHER FINANCING SOURCES Transfers out (795667) (52 , 134)) 279533 Transfer to paying agent (79800,000) (79800 , 000) Debt proceeds 758005000 7 , 8001000 - Total other financing sources (uses) (799667) (529134) 27 , 533 Net change in fund balances (5003467) (4025520) 979947 Fund balances at beginningof year 500 467 Y 150869536 5869069 Fund balances at end of year $ - $ 6845016 $ 6849016 135 Indian River County, Florida Budgetary Comparison Schedule Dodgertown Capital Reserve For the Year Ended September 30, 2003 ) Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 219306 $ 215306 Total revenues - 21 ,306 219306 F EXPENDITURES - Capital projects 2 , 000, 000 - 29000, 000 Total expenditures 2 , 000, 000 - 250005000 Net change in fund balances (29000,000) 21 , 306 2 , 021 , 306 Fund balances at beginning of year 2 ,000 , 000 25030 , 996 30 , 996 Fund balances at end of year $ - $ 2 , 052 ,302 $ 2 ,0525302 136 Indian River County, Florida ' Budgetary Comparison Schedule Gifford Road Construction For the Year Ended September 30, 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) ' Interest $ = $ 71 , 085 $ 71 , 805 Total revenues 715085 715805 EXPENDITURES Capital projects 2 , 200 , 000 19913 2 , 1985087 ' Total expenditures 25200 , 000 13913 2 , 1985087 Net change in fund balances (292005000) 69 , 172 2 ,269, 172 ' Fund balances at beginning of year 2 200 000 353669723 191665723 Fund balances at end of year $ - $ 394359895 $ 3 ,4359895 ' 137 Indian River County, Florida Budgetary Comparison Schedule Shooting Range For the Year Ended September 30, 2003 Variance Final Actual Positive Budget Amounts (Negative) REVENUES Interest $ - $ 2 , 645 $ 29645 Total revenues - 2 , 645 21645 EXPENDITURES Capital projects p p � 1105965 _ 194310 911655 Total expenditures 110, 965 19, 310 91 , 655 Net change in fund balances ( 110 , 965) ( 169665) 94 , 300 Fund balances at beginning of year 1103965 131 ,277 20,312 Fund balances at end of year $ 42, $ 1145612 $ 114, 612 A< 138 Indian River County, Florida ' Budgetary Comparison Schedule Dodgertown Facility For the Year Ended September 30 , 2003 Variance ' Final Actual Positive REVENUES Budget Amounts (Negative) Interest $ - $ 445810 $ 44 , 810 Total revenues - 44 . 810 44 , 810 EXPENDITURES Capital projects 439985427 4 , 1309745 8679682 Total expenditures 42998 ,427 4 , 130 , 745 867 , 682 Net change in fund balances (49998 ,427) (4 , 0859935 ) 912 ,492 Fund balances at beginning of year 4 , 9985427 4 998 428 1 ' Fund balances at end of year $ - $ 9129493 $ 912 ,493 ' 139 Indian River County, Florida Budgetary Comparison Schedule Homeless Assistance Center For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Intergovernmental $ 215 ,292 $ 194 ,297 $ (20 , 995 ) Interest - 2 , 346 2 , 346 Total revenues 215 . 292 196 . 643 _ ( I & 6491 EXPENDITURES Capital projects 3999614 361 , 756 37, 858 Total expenditures _ 399,614 3619756 37, 858 Net change in fund balances ( 184, 322) ( 165 , 113 ) 197209 Fund balances at beginning of year 184, 322 228 , 702 44, 380 Fund Balances at end of year $ - $ 63 , 589 $ 63 , 589 140 Indian River County, Florida Budgetary Comparison Schedule ' Fellsmere Old School For the Year Ended September 30, 2003 Variance Final Actual Positive ' Budget Amounts REVENUES (Negative) Intergovernmental $ 347 , 948 $ 979948 $ (2509000) Interest = 15500 1 , 500 Miscellaneous 75 75 Total revenues 3479948 99 , 523 (2489425 ) EXPENDITURES Capital projects 377 , 668 1359971 241 , 697 Total expenditures 3775668 1355971 241 , 697 Net change in fund balances (299720) (36 ,448 ) (69728 ) Fund balances at beginning of year 29 , 720 62 , 508 329788 ' Fund balances at end ofear _ Y $ $ 26 , 060 $ 269060 ' 141 Indian River County, Florida Budgetary Comparison Schedule Optional Sales Tax For the Year Ended September 30 , 2003 Variance Final Actual Positive REVENUES Budget Amounts (Negative) Taxes $ 10 , 165 , 000 $ 11 , 678 ,272 $ 1 , 5139272 Intergovernmental 5 , 257, 548 11288 ,246 (3 ,969 , 302) Interest 6505000 609 , 077 (40 , 923 ) Miscellaneous - 29309 2 , 309 13 Total revenues 1630729548 9577, 904 (294949644) EXPENDITURES Capital projects 39 , 037, 084 79578 , 310 3194583774 Total expenditures 399037, 084 75578 , 310 31 ,4583774 ` Excess of revenues over (under) expenditures (22 , 964 , 536) 55999 , 594 283964 , 130 OTHER FINANCING SOURCES Transfers out (800, 000) (800 , 000) _ Total other financing sources (uses) (8009000) (800 000) _ Net change in fund balances (23 , 7649536) 511999594 28 , 9649130 Fund balances at beginning of year 23 , 7649536 2730293238 3 ,264, 702 Fund balances at end of year $ - $ 32 ,228 , 832 $ 32 ,228 , 832 142 ' NONMAJOR ENTERPRISE FUNDS ' Shooting Range- To account for the revenues , expenses , assets and liabilities associated with the County Shooting Range . ' County Building- To account for the revenues , expenses , assets and liabilities associated with the building permit and inspection program . ' 143 Indian River County, Florida Combining Statement of Net Assets Nonmajor Enterprise Funds For the Year Ended September 30, 2003 ASSETS Shooting County Current assets : Range Building Totals Cash and cash equivalents $ 89 , 898 $ 4 ,073 , 010 $ 4 , 162 , 908 Inventories 23 , 557 Current restricted assets : - 23 , 557 Cash and cash equivalents - 210,440 Total current assets1. 2105440 1139455 4,283 ,450 4 ,3961905 Non-current assets : Capital assets - non-depreciable 47, 732 Capital assets - depreciable 47, 732 Accumulated depreciation 154129376 3863975 19799 ,351 Total non-current assets (66, 746) (250, 184) (316 ,930) Total assets 1 ,345 ,630 184 ,523 195309153 1 ,4599085 494679973 5 , 9271058 LIABILITIES Current liabilities (payable from current assets) : Accounts payable 49060 74 ,228 Due to other governments 789288 59046 - 59046 Current liabilities (payable from restricted assets) : Customer deposits - 210,440 ' Total current liabilities 2105440 9, 106 284 ,668 293 , 774 Non-current liabilities : Accrued compensated absences 109795 10 75686 Total non-current liabilities 86 ,481 _ 795 _ 75 ,686 _ 86 481 Total liabilities 19, 901 360,354 380,255 NET ASSETS Invested in capital assets, net of related debt 1 ,345 ,630 Unrestricted 184 ,523 93 175309153 Total net assets ,554 3 , 923 ,096 4 ,016 ,650 $ 114392184 $ 4, 107,619 $ 515469803 144 Indian River County, Florida ' Combining Statement of Revenues , Expenses, and Changes in Fund Net Assets Nonmajor Enterprise Funds For the Year Ended September 30, 2003 ' ShootingCounty ty Range Building Totals OPERATING REVENUES Charges for services $ 1685592 $ 2 ,263 , 828 $ 23432 ,420 ' Total revenues 1689592 212635828 2 ,4329420 OPERATING EXPENSES ' Personal services 224 ,655 192289831 1 ,453 ,486 Materials , supplies, services and other operating 70 ,046 4529567 522 ,613 Depreciation 32 , 944 249711 57 , 655 ' Total operating expenses 327 , 645 1 ,706 , 109 29033 , 754 Operating income ( loss) ( 159 ,053 ) 5579719 398 ,666 ' NONOPERATING REVENUES Interest income 11213 80 ,596 81 , 809 Gain on disposal of capital assets 2 ,900 120 39020 ' Total nonoperating revenues 4 , 113 80 , 716 84 , 829 Income before transfers and capital contributions ( 1549940) 6385435 483 ,495 ' Transfers 1579870 - 157 , 870 Change in net assets 29930 6385435 641 , 365 ' Total net assets - beginning 19436 ,254 3 ,469 , 184 4 ,905 ,438 Total net assets - ending $ 1 ,439 , 184 $ 491075619 $ 5 , 546 , 803 ' 145 Indian River County, Florida Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30 , 2003 Shooting County CASH FLOWS FROM OPERATING ACTIVITIES Range Building Totals Cash received from customers $ 1687592 $ 25366 , 953 $ 2 , 535 , 545 Cash paid to suppliers for goods and services (68 , 954) (425 ,498) (4947452) x Cash paid to employees for services (220, 583 ) ( 19239, 114) ( 11459, 697) Net cash provided by (used in) operating activities ( 120, 945 ) 702, 341 5819396 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES , Transfers 1579870 157 870 Net cash provided by noncapital financing activities 157, 870 _ 157, 870 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 29900 120 39020 Purchase of capital assets - ( 146, 222) ( 146,222) Net cash used in capital and related financing activities 2 ,900 ( 1463102) ( 1433202) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 1 ,213 _ 803596 _ 819809 Net cash provided by investing activities 15213 80,596 815809 Net increase in cash and cash equivalents 41 ,038 636,835 677 , 873 Cash and cash equivalents at beginning of year 48 , 860 3 ,646, 615 3 , 695 ,475 Cash and cash equivalents at end of year $ 899898 $ 4,2839450 $ 49373 , 348 Classified as : Current assets $ 89, 898 $ 4 , 073 , 010 $ 4, 162 ,908 ' Restricted assets 210,440 2109440 Totals $ 89, 898 $ 4,283 ,450 $ 4,3739348 146 Indian River County, Florida ' Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended September 30 , 2003 ' Shooting County Range Building Totals ' RECONCILIATION OF NET OPERATING INCOME (LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ ( 1599053 ) $ 557, 719 $ 398 , 666 Adjustments to reconcile operating income to net cash provided by operating activities : ' Depreciation 32 ,944 245711 57 , 655 (Increase) decrease in assets : Due from other governments - 125 125 ' Inventories 25422 - 25422 Increase (Decrease) in liabilities : Accounts payable ( 19721 ) 27, 194 253473 ' Due to other governments 391 ( 125 ) 266 Other deposits in escrow - 103 , 000 1039000 Accrued compensated absences 49072 ( 109283 ) (69211 ) Total adjustments 38 108 144 6 22 182, 730 ' Net cash provided by ( used in) operating activities $ ( 120, 945 ) $ 7025341 $ 581 ,396 NONCASH CAPITAL AND RELATED ' FINANCING ACTIVITIES Change in fair value of investments $ ( 175 ) $ ( 1 , 824) $ ( 1 ,999) ' 147 INTERNAL SERVICE FUNDS Fleet Management- To account for the expenses incurred to repair and maintain the County 's vehicles and equipment . Revenues are generated by charging user departments for maintenance of their vehicles and equipment . Self Insurance - To account for the expenses incurred for p workers 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 . Y, .L_ {{ 148 ' Indian River County, Florida Combining Statement of Net Assets ' Internal Service Funds For the Year Ended September 30, 2003 Fleet Self ASSETS Management Insurance Totals Current assets : Cash and cash equivalents $ 5685546 $ 7,349 ,908 $ 79918 ,454 Accounts receivable-net 267088 2839072 309 , 160 Inventories 679536 - 679536 Total current assets 662 , 170 756325980 8 ,295 , 150 Non-current assets : Capital assets - depreciable 4255930 249419 4509349 Accumulated depreciation (408 ,271 ) (235078) (431 ,349 ) Total non-current assets 17,659 19341 19 , 000 ' Total assets 6795829 7,6341321 89314 , 150 ' LIABILITIES Current liabilities (payable from current assets) : Accounts payable 43 ,247 1755987 219 ,234 Claims payable 4 , 5819000 4 , 5819000 Accrued compensated absences 59000 1 ,000 6 ,000 Total current liabilities (payable from current assets) 48 ,247 497579987 49806 ,234 Non-current liabilities : Accrued compensated absences 28 ,797 22 , 502 519299 Total non-current liabilities 289797 22 , 502 51 ,299 Total liabilities 779044 4 , 7809489 4 , 8575533 NET ASSETS Invested in capital assets, net of related debt 17,659 1 , 341 19 ,000 Unrestricted 5859126 29852 ,491 3 ,4375617 Total net assets $ 6021785 $ 2 , 8535832 $ 3 ,4569617 ' 149 Indian River County, Florida Combining Statement of Revenues , Expenses , and Changes in Fund Net Assets Internal Service Funds For the Year Ended September 30 , 2003 Fleet Self Management Insurance Totals OPERATING REVENUES Charges for services : Vehicle maintenance $ 114455090 $ - $ 154452090 Self insurance - 114486 ,639 11 ,486,639 Total revenues 114459090 1154869639 1259315729 OPERATING EXPENSES Personal services 484 , 519 21240,009 297247528 Materials, supplies, services and other operating 1 ,006 , 707 81782 ,542 9 , 7891249 Depreciation 101395 561 109956 Total operating expenses 1 ,501 ,621 11 ,023 , 112 12 , 524 , 733 Operating Income (Loss) (565531 ) 463 , 527 406 ,9,96 NONOPERATING REVENUES Interest income 91832 122 , 106 131 ,938 Gain on disposal of equipment 525 - 525 Total nonoperating revenues 10,357 122 , 106 132 ,463 Change in net assets (463174) 5852633 539 ,459 Total net assets - beginning 648 ,959 232685199 219172158 Total net assets - ending $ 6029785 $ 2 , 853 , 832 $ 35456 ,617 150 Indian River County, Florida Combining Statement of Cash Flows ' Internal Service Funds For the Year Ended September 30, 2003 Fleet Self ' CASH FLOWS FROM OPERATING ACTIVITIES Management Insurance Totals Cash received from customers $ 1 ,446 , 242 $ 1192985148 $ 12 , 744 ,390 Cash paid to suppliers for goods and services ( 1 , 001 ,289) ( 8 , 511 , 397) (9, 5129686) Cash paid to employees for services (4883767) (2 ,2373700) (2, 7269467) Net cash used in operating activities (43 , 814) 5499051 5055237 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of equipment 525 - 525 ' Purchase of capital assets (4 , 162) - (4 , 162) Net cash provided by (used in) capital and related financing activities (39637) - (35637 ) CASH FLOWS FROM INVESTING ACTIVITIES ' Interest and dividends on investments 99832 1229106 131 ,938 Net cash provided by investing activities 95832 122, 106 131 , 938 Net increase (decrease) in cash and cash equivalents (379619) 671 , 157 633 , 538 Cash and cash equivalents at beginning of year 6065165 696789751 792845916 ' Cash and cash equivalents at end of year $ 5683546 $ 7,3499908 $ 7 918 454 Classified as : Current assets $ 5689546 $ 7 ,3499908 $ 799183454 Restricted assets Totals $ 5689546 $ 7 ,349 , 908 $ 719489454 ' 151 Indian River County, Florida Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2003 Fleet Self RECONCILIATION OF NET OPERATING INCOME (LOSS) Management Insurance Totals NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ (56, 531 ) $ 4639527 $ 406 , 996 Adjustments to reconcile operating income to net cash provided by operating activities : Depreciation 109395 561 10,956 (Increase) decrease in assets : Accounts receivable (3 , 725 ) (246,901 ) (2505626) Due from other governments 45877 585410 639287 Inventories 43846 - 4, 846 Deposits - 402 402 Increase (Decrease) in liabilities : Accounts payable 572 (49,257) - (489685) Claims payable - 32000 3209000 Accrued compensated absences (49248) 2 ,309 ( 15939) Total adjustments 12, 717 85 , 524 98 ,241 Net cash provided by operating activities $ (43 , 814) $ 549, 051 $ 505 ,237 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ ( 873 ) $ ( 115977) $ ( 12, 850) Continued 152 ' FIDUCIARY FUND Agency Fund To account for assets held solely in a custodial capacity by the County. ' 153 Indian River County, Florida Statement of Changes in Assets and Liabilities Agency Fund For the Year Ended September 30 , 2003 Balance Balance October 1 , September 30 , 2002 Additions Deductions 2003 _ ASSETS Cash and cash equivalents $ 5 , 8659020 $ 279, 394, 978 $ 2779866 , 974 $ 7, 393 , 024 Accounts receivable 26 , 703 61 , 713 82 , 641 _ Total assets 59775 $ 5 , 89_23 $ 279,_ $ 277, 949 , 615 $ 7, 3985799 979 9 LIABILITIES Accounts payable $ 833430 $ 125738 ,210 $ 12, 618 ,262 $ 203 , 378 Due to other governments 2 ,2333744 249,418 , 507 247, 729, 644 3 , 922 , 607 Other deposits held in escrow 3 , 574 , 549 17,299 974 17 Total liabilities , 6 3 ,272 , 814 $ 5 , 89_ 1 , 723 $ 279,4569691 $ 277, 949 , 615 $ . 7 398 799 154 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL ACTIVITIES 155 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Comparative Schedules By Source September 30 , 2003 FY 2002 FY 2003 Governmental activities capital assets : Land $ 52 , 094,481 $ 69 , 838 ,455 Right-of-way ' 1 109556, 363 1150359870 Buildings and improvements 53 , 9129346 6451965776 Equipment Infrastructure 3855689109 409199,464 15457413048 156 , 149 , 896 Construction in progress 27, 0965862 4257939108 Total governmental activities capital assets $ 336, 9695209 $ 384,2135569 Investment in governmental activities capital assets by sources : General revenue $ 274 , 3785762 $ 29539793666 Federal revenue sharing/grants 5 , 868 , 383 6 , 117,267 General obligation debt 31 , 753 , 673 46, 970, 725 Capital projects funds 21 ,212 , 902 31 ,473 , 893 Contributions 357555489 396725018 Total investment in governmental activities capital assets by sources $ 336, 969, 209 $ 38422137569 156 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Schedule By Function and Activity September 30 , 2003 ' Buildings and Function and Activity Total Land Improvements Equipment Infrastructure ' General government : Executive $ 95 , 967 $ - $ - $ 955967 $ Financial and administrative 4993069837 195280, 643 26, 969,425 39056, 769 Legal counsel 29,209 29,209 _ Comprehensive planning 135 , 142 135 , 142 Other general governmental services 41272 , 816 - 225, 680 450473136 Subtotal 53 , 8392971 19,280,643 27, 195 , 105 75364,223 _ Public safety : Law enforcement 117836, 787 - 2, 9109141 8, 926, 646 Fire control 894799156 386,808 298519383 5 ,240, 965 ' Detention/Corrections 159219,408 1 , 0529241 13 ,067, 770 15099,397 _ Emergency and disaster relief services 498813268 - 498819268 Ambulance and rescue services 1 , 8385690 - - 1 , 838,690 Other public safety _ _ 69,218 - - 69,218 Subtotal 42,324, 527 1 ,439, 049 18, 829,294 22,0565184 _ Physical environment: ' Soil conservation 53 ,035 53 ,035 _ Telecommunications 4, 564 4, 564 Stormwater 279, 012 - - 279, 012 Subtotal 336,611 - - 573599 279, 012 Transportation : Road and street facilities 170,250, 823 11 ,035, 870 - 6, 6409124 152, 5749829 IRC - Council on Aging L1395883 - 191395883 Subtotal 171 ,3903706 11 ,035, 870 - 7,7805007 152, 574, 829 Economic environment: Veterans services 8, 830 8, 830 ' Housing and urban development 827 - - 827 _ Subtotal 99657 _ - 9,657 _ Human services : _ - - Health 761 ,275 7613275 Welfare 45 ,386 - - 459386 Substance abuse council 89542 - - 85542 Subtotal 815,203 - - 815 ,203 Culture/Recreation : Libraries 998999555 1 ,2755181 719069271 718, 103 Parks and recreation 62,311 , 351 47,843 , 582 10,263 ,093 908, 621 3 ,296,055 Subtotal 72,210,906 4991189763 189169, 364 19626, 724 3 ,296,055 Court Related : Judicial 492, 880 - 3 ,013 4895867 _ Subtotal 492, 880 - 3 ,013 4892867 _ Total 341 ,4201461 $ 80, 874,325 $ 64, 1969776 $ 40, 1993464 $ 156, 149, 896 Construction in progress 42 793 108 ' Total $ 38452139569 157 Indian River County, Florida Capital Assets Used in the Operation of Governmental Activities Schedule of Changes By Function and Activity For The Year Ended September 30 , 2003 Governmental Activities Governmental Capital Assets Activities Function and Activi Octobe_ r 1 , 2002 Additions Deletions Transfers Transfers Capital Assets In Out September 30,General government: Executive $ 847781 $ Financial and administrative 14 , 855 $ (21271 ) $ 4, 926 $ (67324 ) $ 95 967 49, 160, 828 512, 383 375 084 Legal counsel 29,351 ( ) 27,908 ( 19, 198 ) 49 306 837 Comprehensive planning 925 ( 19067) - - 29,209 Other general governmental services 132,235 9, 956 (5 , 547) 732 2 048 4 142 235 _ 169, 019 58 129 ( ' ) 1357142 Subtotal 53 , 549 244 707, 138 (5 p - 65 , 149 399462 5383 % 971 816 Public safety : Law enforcement 11 ,499, 086 1 ,059,849 556 819 Fire control ( ) 118,281 (283 , 610) 111836, 787 812619744 246,224 (34,978) 22,219 16 053 Detention/Corrections 13 , 7263741 1 ,354, 194 33 011 ( ) 8,479, 156 Emergency and disaster relief services 498362116 ( ) 289, 765 ( 118,281 ) 15,219, 408 Ambulance and rescue services 83 ,068 (3 , 817) - (34,099) 4, 881 ,268 1 ,835,675 260,517 (261 , 578) 4 076. Other public safety 69,818 � - 1 , 838, 690 Subtotal600 - - 69,218 Physical environment : 40,229, 180 3 003 852 890 803 434, 341 4521043 425324, 527 t Soil conservation 55, 000 Telecommunications 31208 (55173 ) 57118 (51118 ) 53 ,035 Stormwater 4, 564 - ( 11640) 1 , 640 _ 279, 012 _ 4, 564 Subtotal 59, 564 282 220 - - 2793012 (6, 813 ) 69758 (5, 118 ) �1 Transportation : -- Road and street facilities 168, 356, 901 2, 213 ,968 (329,450) IRC - Council on Aging 16J37 1044Ogq 125, 854 (6, 733 ) 170,2509823 , Subtotal (3�° 055L - 111399883 ' 1695 2,339, 822359 505 16, 137 6, 733 171 ,- 3 06 I Economic environment: Veterans services 109607 Housing and urban development 1 '850 - - (3 , 627) 8, 830 -- 119551 - 10, 124 _ Subtotal _ 2_g 1 , 850 - --827 ( 10, 124) - (3 ,627) 99657 Human services : Health Welfare 695, 724 91 ,801 (26,250) _ 45,386 _ - 761 ,275 Substance abuse council 83542 - - 45,386 Subtotal 749, 652 - 8, 542 91 , 801 (26,250) - - 8152203 Culture/Recreation : Libraries 539459895 31970, 113 ( 12, 196) 4 483 Parks and recreation 39 9 22 971 ,506 (8, 740) 9, 899, 555 Subtotal (37,024) - - 62, 311 , 351 45_ 322, 764 269941 ,619 493220 4,483 Court related : 83740 72,210, 906 Judicial 539,400 Subtotal ---.--- 13 ,201 (487576) 137682 (24,827) 492, 880 539,400 13 201 (48 , 576) 13 ,682 (24,827) 492 880 Construction in progress 27,0961862 279862, 797 ( 12 , 1669551 ) - 423793 , 108 Total $ 33639699209 $ 61 ,2447300 $( 1329999940) $ 5409550 $ (540, 550) $ 384, 213 , 569 158 � gF' i4x a � z r � 3 +fir 9 S 71 14 llp 'JIn WA ' le IV A I VII3 I� lv I �h f / Aw STATISTICAL SECTION The statistical data relates to the physical , economic, social COMMENTS RELATIVE TO STATISTICAL SECTION and political characteristics of Indian River County. It is intended to provide a broader and more complete unders- The following statistical tables are not included for the tanding of the County and its financial affairs than is reasons stated below: possible from the financial statements and supporting schedules included in the financial section. Most of these a) Computation of the Legal Debt Margin is omitted tables cover more than two fiscal years and present data because the Constitution of the State of Florida (FS from outside the accounting records. Therefore, the 200 . 181 ) and Indian River County set no legal debt Statistical Section data has not been subjected to independent limit audit. b) Ten-year comparative summaries of specific information regarding the Public Employee NOTE : The fiscal year is from October 1 to September 30 . Retirement System (PERS) are omitted because P Indian River County participates in a multi-employer Hence, fiscal year 2003 includes financial data for October 1 , PERS administered by the State of Florida and 2002 to September 30, 2003 . separate actuarial valuations for each participating employer are not available . INDIAN RIVER COUNTY, FLORIDA GENERAL GOVERNMENT EXPENDITURES BY FUNCTION TABLE 1 LAST TEN FISCAL YEARS PHYSICAL ECONOMIC CULTURE FISCAL GENERAL PUBLIC ENVIRON- TRANSPOR- AND YEAR TOTALS GOVERNMENT SAFETY ENVIRON- HUMAN RECRE- COURT MENT TATION MENT SERVICES DEBT ATION RELATED SERVICE 1994 $ 77 , 5877773 $ 22, 592, 742 29 % $28, 383 ,551 37 % $ 282 , 866 0 % $ 13 , 201 , 190 17 % $ 183 , 369 0% $ 3081198 5 % $ 5 , 227 , 780 7 % 1995 71 ,207, 503 16, 002,950 23299531 , 035 41 2,543 ,098 4 12, 105,310 17 157, 895 0 41069,066 6 5, 161 ,035 7 $ 3 , 828 , 077 5 % 1996 76, 5611004 152359, 169 20 32,9241200 43 1 ,242,069 2 11 , 609,464 15 163 ,406 0 415892591 6 7,436, 836 10 1 ,637, 114 2 1997 94,321 ,079 16, 130,433 17 39,831 ,979 42 8, 738 ,689 9 11 , 892, 662 13 266, 849 0 4,972,494 5 6,308 ,543 7 3 ,236,269 4 1998 88,423,334 13,456, 145 15 372093, 6, 179,430 7 684 42 3 ,276,200 4 169813,930 19 281 , 879 0 3 ,9895075 5 72149, 129 8 $ 3 , 8661441 4% 2,496, 851 3 C) 1999 93 ,403 , 557 13, 844, 361 15 3938527827 43 11333 ,456 1 18, 7003809 20 278, 191 0 5,0481135 5 7, 150,011 8 4,3751340 5 2, 820,427 3 2000 101 , 876 , 515 14 , 665 , 306 14 40, 893 , 105 40 4 , 947, 965 5 13 , 415 , 177 13 2595354 0 4 , 928 , 117 5 12 , 006, 079 12 4 , 565 , 674 5 6 , 1955738 6 2001 109 , 531 , 820 15 , 799, 857 15 42 , 891 , 194 39 292549447 2 13 , 4089736 12 302 , 580 0 5 , 746 , 410 5 211945 , 498 20 5 , 323 , 388 5 1 , 859 , 710 2 2002 1262134 , 275 205228 , 495 16 45 ,3521323 36 2 , 667 , 619 2 229729, 769 18 3475096 0 55832 , 441 5 19 , 323 , 355 15 5 , 802 , 798 5 3 , 8503379 3 2003 150, 955 , 970 23 , 7859570 16 47 , 565 , 048 32 18 , 587 , 122 12 205120 , 969 13 5837850 0 69540 , 673 4 231253 , 841 15 5 , 9981260 5 4 , 5205637 3 NOTE : Includes General, Special Revenue, Debt Service, and Capital Projects Funds INDIAN RIVER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS TABLE 3 LAST TEN FISCAL YEARS CURRENT PERCENT DELINQUENT TOTAL PERCENT FISCAL TOTAL TAX OF LEVY TAX OF TOTAL YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS COLLECTIONS LEVY 1994 $ 39,304,957 $. 37, 518, 7990 95 .46 /0 $ 169, 530 $ 379688, 32995. 89% 1995 375475,209 35, 835,361 95 . 62 6679860 3695035221 97. 41 1996 4275079452 40,907,378 96.24 15,228 401922,606 96. 27 1997 439767,639 42,474,085 97. 04 93 , 054 42, 567, 139 97. 26 1998 45,0879396 43 ,498, 326 96.48 65, 517 N 435563 , 843 96 . 62 1999 479178,979 4499859116 95 .35 132,335 45, 117,451 95 . 63 2000 50, 5999662 48, 9361993 96. 72 108, 698 49,0459691 96. 93 2001 53 , 727,318 5291489971 97.07 158,661 52,307,632 97.36 2002 59, 1849019 569856, 770 96.07 95,364 56,952, 134 96. 23 2003 659289, 186 62,668, 552 95 .99 7, 797 629676, 349 96.00 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. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After 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. INDIAN RIVER COUNTY, FLORIDA TABLE 3 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS PERCENT CURRENT PERCENT DELINQUENT TOTAL OF TOTAL FISCAL TOTAL TAX OF LEVY TAX TAX COLLECTIONS YEAR TAX LEVY COLLECTIONS COLLECTED COLLECTIONS COLLECTIONS TO LEVY 1994 $ 391304,957 $ 37,518, 799 95.46% $ 1699530 $ 37,6889329 95 . 89% 1995 375475,209 359835,361 95 . 62 6675860 36, 503 ,221 97 . 41 1996 42,5079452 40,9079378 96 . 24 159228 403922,606 96 . 27 1997 432767,639 42,4741085 97. 04 939054 42, 567, 139 97.26 �. 1998 45,0879396 43 ,4989326 96.48 65 , 517 4395635843 96 . 62 rn N 1999 47, 178,979 44,985 , 116 95 . 35 132,335 4591179451 95 . 63 2000 50,5999662 489936,993 96. 72 1089698 491045,691 96 . 93 2001 531727,318 5291489971 97.07 158,661 529307,632 97. 36 2002 599184,019 561856, 770 96.07 95,364 56,9521134 96 .23 2003 65,289, 186 62,668,552 95 .99 79797 62,676,349 96 . 00 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 I 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 I % in the month of February. The taxes paid in March are without discount. Delinquent taxes on real property bear interest of 18% per year. On or prior to June 1 following the tax year, certificates are sold for all delinquent taxes on real property. After 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. INDIAN RIVER COUNTY, FLORIDA TABLE 4 JUST AND TAXABLE VALUE OF REAL AND PERSONAL PROPERTY LAST TEN FISCAL YEARS PERCENT OF PERSONAL TOTAL TAXABLE REAL PROPERTY PROPERTYVALUE FISCAL JUST NST TOTAL TO TOTAL YEAR VALUE JUST TAXABLE JUST 1 ( ) VALUE ( 1 ) VALUE ( 1 ) VALUE ( 1 ) VALUE 1994 $ 6, 70397399975 $ 37252239746 $ 7,075,963 , 721 $ 5,406,245, 871 76 , 4 % 1995 750119412, 975 430, 527, 594 7,4419940, 569 5546493259993 73 . 4 1996 7,305 , 049,473 530, 825 , 131 79835 , 8741604 5971839155081 73 . 0 w 1997 75589, 0719741 5549667, 039 851431738 , 780 5 ,9409864, 817 73 . 0 1998 798079203 , 863 6225046,910 8,4291250, 773 6, 159, 944, 874 73 . 1 1999 8908032479333 65236989708 8 , 73259465041 6,420,215,433 73 . 5 2000 8,671 ,5739086 764,8515686 9,436,4249772 6,995,9485262 74 . 1 2001 991095672,314 7251390,231 9983590625545 79440,896,735 75 . 6 2002 10,5395705,283 70799419621 11 ,247,646,904 8,54 1 ,205, 140 75 . 9 2003 11 ,985, 128,952 69433059280 12,67994349232 95500, 8915213 74 . 9 Source ( 1 ) Indian River County Property Appraiser NOTE : Values are established as of January 1 of the previous calender year, i . e . , January 1 , 2002, taxable values apply to the fiscal year ending 2003 . INDIAN RIVER COUNTY, FLORIDA TABLE 5 PROPERTY TAX RATES - DIRECTAND OVERLAPPING GOVERNMENTS (PER $ 1 ,000 OF ASSESSED VALUE) LAST TEN FISCAL YEARS INDEPENDENT COUNTY- WIDE TOTAL TAXING DISTRICTS FISCAL SCHOOL COUNTY- YEAR COUNTY( 1 ) BOARD OTHER(2) WIDE CITIES (3 ) OTHER(2 ) 1994 5 . 77090 9. 84460 2 . 58730 18 .20280 4 . 61054 2 . 01939 1995 5 . 95235 10 . 19830 2 .26023 18 . 41088 4 . 29846 2 . 71708 1996 5 . 92350 10 . 34800 2 . 74083 19 . 01233 4 .40633 2 . 00503 1997 5 . 92330 10 . 31900 2 . 64544 18 . 87740 3 . 84790 1 . 70220 1998 5 . 80800 10 . 14000 2 . 49690 18 . 84490 3 . 78756 1 . 51850 1999 5 . 73690 10 . 15000 2 . 59470 18 . 48160 3 . 68094 1 . 73635 2000 5 . 54870 9. 61400 2 . 69490 17. 85760 3 .29626 1 . 52091 2001 5 .54080 9. 55700 2 . 70780 17. 80560 3 . 19996 1 .62899 2002 5 . 52340 9.08200 2 . 56070 17. 16610 3 . 05086 1 . 61045 2003 5 .47130 8 . 73200 2 .55890 16 . 76220 2 .97106 1 .90075 ( 1 ) 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 mils, except for voted levies . (2) Composite tax rates (3 ) Average tax rate rr rr rr �r rr rr r r rr rr rr rr r rr �r rr r ,■�,� �,�, INDIAN RIVER COUNTY, FLORIDA TABLE 6 SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS ADDITIONAL ASSESSMENTS ASSESSMENTS COAS o OONS ASSESSMENTS COLLECTED OUTSTANDING ASSESSMENTS FISCAL BEGINNING MADE DURING DURING END OF OUTSTANDING YEAR OF YEAR YEAR YEAR YEAR DURING YEAR 1994 434655671 35947,208 392199916 59192,963 38 .27 1995 5 , 192 ,963 245 , 167 2, 0369465 3 ,401 ,665 37 . 45 1996 314019665 359429750 295209025 458279390 34 . 31 CN 1997 49827, 390 1 , 555 , 553 1 , 804, 510 4, 5789433 28 . 27 1998 49578 ,433 3 , 801 ,428 332839276 530969585 39 . 18 1999 590969585 19922 , 727 255275194 4,492 , 118 36 . 00 2000 4,492, 118 293509146 254919273 413509991 36 .41 2001 4,3503991 13223 , 748 1 ,996, 113 33578,626 35 . 82 2002 3 ,5785626 4,431 ,758 3 ,6679858 41342, 526 45 . 79 2003 493427526 5,9079488 456973261 5 , 5529753 ( 1 ) 45 . 83 ( 1 ) Assessments outstanding end of year are represented by: Water and Sewer Assessments Receivable $ 5 ,509,498 Other Assessments Receivable 43 ,255 $ 59552, 753 INDIAN RIVER COUNTY, FLORIDA TABLE 7 RATIO OF NET GENERAL BONDED DEBT TO TAXABLE VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS RATIO OF GROSS GENERAL NET BONDED OBLIGATION DEBT SERVICE DEBT TO NET BONDED FISCAL TAXABLE BONDED MONIES NET BONDED TAXABLE DEBT PER YEAR POPULATION( l ) VALUE(2) DEBT AVAILABLE DEBT VALUE CAPITA 1994 97,415 $ 594069245 , 871 $ -0- $ -0- $ -0- .0000 N/A 1995 100,261 5 ,464 ,3259993 15 , 000,000 - 0 - 15 , 000 , 000 . 0027 149 . 61 1996 102,211 51718 ,9155081 145280, 000 3 % 731 1399119269 . 0024 136 . 10 1997 104,605 5 ,94058641817 13 , 5355000 6619037 1258735963 . 0022 123 . 07 1998 106, 675 65159,9445874 12, 7553000 885 ,904 115869, 096 . 0019 111 . 26 1999 109, 579 6 ,4209215 ,433 1199453000 1 , 072, 959 10, 872, 041 . 0017 99 . 22 2000 1125947 6,995,9489262 1151003000 1 ,3579461 9,7429539 . 0014 86 . 25 2001 1157716 79440,8969735 10,215 ,000 1 ,609,998 85605,002 . 0012 74 . 36 2002 118, 149 8,54192059140 19, 8105000 110859999 18,7249001 . 0022 158 .48 2003 120,271 9,500,8917213 175725,000 684,016 17,0409984 . 0018 141 . 69 ( 1 ) Source : U . S . Census and Bureau of Business and Economic Research, University of Florida (2) Source : Indian River County Property Appraiser INDIAN RIVER COUNTY, FLORIDA TABLE 8 COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 2003 PERCENTAGE AMOUNT APPLICABLE TO APPLICABLE TO INDIAN RIVER INDIAN RIVER NET DEBT COUNTY COUNTY JURISDICTION OUTSTANDING RESIDENTS RESIDENTS Indian River County General Obligation Bonds, Series 1995 , Series 2001 $ 17,0405984 100 % $ 1790409984 o, Indian River County School Board 4192805000 ( 1 ) 100 41 , 280,000 ( 1 ) Sources: ( 1 ) Indian River County School Board, as of June 30, 2003 INDIAN RIVER COUNTY, FLORIDA TABLE 9 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS RATIO OF TOTAL DEBT SERVICE GENERAL( 1 ) TO GENERAL FISCAL TOTAL GOVERNMENTAL EXPENDI- YEAR PRINCIPAL INTEREST DEBT SERVICE EXPENDITURES TURES 1994 $ 1 ,335 ,000 $ 250, 155 $ 1 , 585 , 155 $ 77, 587, 773 .020 1995 - 0- - 0- -0 - 715207 , 503 N/A rn °O 1996 702, 000 687,228 1 ,407,228 76, 561 , 004 . 018 1997 745 , 000 662,028 1 ,4075028 949321 ,079 . 015 1998 7809000 634, 090 11414, 090 885423 ,334 . 016 1999 810, 000 602, 890 194123890 93 ,403 , 557 . 015 2000 8455000 569,680 15414,680 101 ,876,515 . 014 2001 885,000 534, 190 1 ,419, 190 109,531 ,820 . 013 2002 1 ,4055000 762, 113 2, 167, 113 126, 134,275 .017 2003 29085 ,000 842,403 25927,403 150,955 ,970 . 019 ( 1 ) Includes General, Special Revenue, Debt Service, and Capital Project Funds , 11 NOTE : The Constitution of the State of Florida, Florida Statute 200 . 181 , and Indian River County do not set a legal debt margin . r r �r �r rr �r �r r� rr rr r � ■r r rr rr rr r r INDIAN RIVER COUNTY DEPARTMENT OF UTILITY SERVICES TABLE 10 SUMMARY OF HISTORICAL REVENUES OF THE SYSTEM LAST TEN FISCAL YEARS 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Uniform Charges Water Sales $ 55377 , 174 $ 51730 , 508 $ 65657 ,323 $ 7, 112 ,979 $ 71576 , 145 $ 8 , 1051703 $ 8 , 680 ,435 $ 91101 , 553 $ 9 , 3735866 $ 10, 108 , 045 Sewer Sales 6 , 2831250 655005416 710345397 7 , 424 , 615 7 , 488 , 529 72913 , 884 7 , 991 , 280 83154 , 933 8 , 5345228 8 , 9403200 Other 1 , 236 . 701 1 . 116 . 865 1 .442 . 557 1 . 985 . 179 1 . 462 . 839 1 . 162 . 098 12443 . 978 1 . 367 . 291 1 . 684 . 506 1 . 814 . 370 Total Uniform Charges $ 12, 8972125 $ 132347, 789 $ 151134,277 $ 16, 522 , 773 $ 16, 527, 513 $ 17, 1819685 $ 18 , 1155693 $ 1826235777 $ 19, 592, 600 $ 20, 8621615 Septage/Sludge 49 , 034 159, 034 113 , 492 88 , 267 127 , 544 1185633 223 , 384 2937741 3819741 348 , 320 Surcharges 2415773 231 , 267 132 , 062 122 , 936 345 , 390 234 , 729 231 , 478 238 , 079 2479137 243 , 342 Interest Earnings 1 , 575 , 189 1 , 741 , 677 1 , 3461579 1 , 637 , 156 1 , 964 , 251 19845 ,469 2 , 9381338 4 , 577 , 350 2 , 9831032 1 , 797 , 260 1989/ 1990 Special Assessments 6452513 3842662 482 , 779 633 , 974 4969944 53 , 386 166 , 239 379235 91409 11 , 650 1996 Special Assessments 19010 194585337 7412707 1 , 5421906 870, 629 2 , 619, 805 2 , 7529661 Gross Revenues : $ 15 .408 . 634 $ 15 . 864. 429 $ 17.209. 189 $ 19. 195 . 716 $ 20. 919. 979 1 20. 175 . 609 $ 23 . 218. 038 $ 24 . 640. 811 $ 25 . 833 . 724 $ 26. 015 . 848 Direct Expense 7332 . 244 6 . 747 . 171 8 . 309 . 142 8 . 144 . 867 8 . 565 . 905 7 , 868 . 098 8 . 361 . 845 9, 388 . 472 9 . 662 . 508 10. 664. 644 Net Revenues Available for Debt Service $ 8 . 076 . 390 $ 9 . 117 .258 $ 8 . 900 . 047 $ 11 . 050. 849 $ 12 . 354 . 074 $ 12307 . 511 $ 14. 856. 193 $ 15 .252. 339 $ 16 . 17 L216 $ 1535 L204 Annual Debt Service 3 , 681 , 090 3 , 672 , 010 453409916 6 , 286 , 771 65264 , 549 6 , 247 , 069 6, 232 , 654 5 , 7922559 51792 , 839 5 , 838 , 434 Debt Service Coverage 2 . 19x 2 . 48x 2 . 05x 1 . 76x 1 . 97x 1 . 97x 2 . 38x 2 . 63x 2 . 79x 2 . 63x NOTE : In accordance with the Water and Sewer Revenue Bonds, Series 1996 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 . INDIAN RIVER COUNTY, FLORIDA TABLE 11 REVENUE BOND COVERAGE GOLF COURSE LAST TEN FISCAL YEARS NET REVENUE DIRECT AVAILABLE DEBT SERVICE REQUIREMENTS FISCAL GROSS OPERATING FOR DEBT YEAR REVENUES EXPENSES SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 1994 $ 2 , 682 , 844 $ 1 ,999, 173 $ 683 ,671 $ 280 , 000 $ 469 ,284 $ 749 , 284 . 91x 1995 25742, 702 1 , 925 ,315 8179387 270 , 000 4619332 7315332 1 . 12 1996 257505896 1 ,904 , 775 8469121 2809000 4525917 7329917 1 . 16 0 1997 21562 ,967 1 , 843 , 526 7195440 290 , 000 442 ,417 732 , 417 . 98 1998 25842 , 342 2 , 068 ,075 7745267 300 , 000 4309818 7309818 1 . 06 1999 29928 , 530 2 , 063 ,359 865 , 171 315 , 000 4189518 733 , 518 1 . 18 2000 29998 , 955 2 , 1103920 8889035 325 , 000 404, 973 729 , 973 1 . 22 2001 3 , 095 , 768 2 , 1909943 9049825 3459000 3909673 7359673 1 . 23 2002 29928 , 157 291889791 7399366 3609000 3759148 7359148 1 . 01 2003 31135 ,478 2 , 326 , 179 809,299 375 , 000 . 357 , 103 732 , 103 1 . 11 INDIAN RIVER COUNTY, FLORIDA TABLE 12 REVENUE BOND COVERAGE INDIAN RIVER COUNTY HOUSING AUTHORITY- COMPONENT UNIT LAST TEN FISCAL YEARS NET REVENUE DIRECT AVAILABLE DEBT SERVICE REQUIREMENTS FISCAL GROSS OPERATING FOR DEBT YEAR REVENUES EXPENSES SERVICE PRINCIPAL INTEREST TOTAL COVERAGE 1994 $ 615 , 859 $ 479, 970 $ 1359889 $ 167, 000 $ 52 , 695 $ 219, 695 . 62x 1995 6239320 420, 160 2039160 169 , 000 519087 204, 716 . 99 1996 6235313 470,456 1529857 170, 000 49,453 219 ,453 . 70 1997 6299888 447, 148 1829740 172 ,000 47, 774 2199774 83 1998 6379191 4169078 2219113 173 , 000 46 , 054 2199054 1 . 01 1999 6305100 409,647 2209453 175 ,000 44 , 293 2193293 1 . 01 2000 666 , 946 4029612 264 , 334 1779000 42 , 705 2199705 1 . 20 2001 716, 796 449 ,220 2679576 179, 000 40, 655 2199655 1 . 22 2002 712 ,236 4659551 2469685 1819000 39, 014 2205014 1 . 12 2003 690,645 4949031 196,614 1829000 379052 2199052 . 90 INDIAN RIVER COUNTY, FLORIDA TABLE 13 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS ANNUAL ANNUAL ANNUAL AVERAGE AVERAGE AVERAGE UNEMPLOYMENT UNEMPLOYMENT UNEMPLOYMENT PER CAPITA SCHOOL RATE- RATE- RATE- FISCAL POPULATION INCOME ENROLLMENT COUNTY STATE NATIONAL YEAR ( 1 ) ( 1 ) (2) (3 ) (3 ) (3 ) 1994 97,415 28,268 13,085 11 .00/0 6.6% 6. 3% 1995 100261 $ 30,356 13,034 9A 5.7 6. 1 1996 102211 $ 31 ,951 139692 9.5 5.5 5.4 N 1997 1043605 $ 33,496 14,043 8.4 5. 1 5.4 1998 106,675 $ 34,852 14,300 8. 1 4.5 4.6 1999 1091579 $ 35,202 147497 7.6 4. 1 4.3 2000 112,947 $ 35,623 14,223 7.0 3.8 4.0 2001 115,716 N/A 149050 6.5 3.9 4.4 2002 118, 149 N/A 15,660 7.7 5.4 5.7 2003 1207271 N/A 15,716 8.2 5.3 6.0 SOURCES: ( 1 ) U. S . Census and Bureau of Economic and Business Research, University of Florida (2 ) Indian River County School Board, Peak Enrollment (3 ) Florida Department of Labor and Employment Security Bureau of Labor Market and Performance N/A- Not Available W&JAA' 1I RMiChM:w,MI� fKKMAY®YY .u.i .:i .i : . . . rr rr rr r rr rr it r� �r rr rr rr rr rr r r rr r rr INDIAN RIVER COUNTY, FLORIDA TABLE 14 PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS REAL COMMERCIAL FISCAL PROPERTY NEW BANK YEAR VALUE 1 ) CONSTRUCTION 4 DEPOSITS 1994 69703, 7393975 202,2179559 11237, 8179000 (2) 1995 7,011 ,412, 975 164,6763298 11268, 6585000 (3 ) 1996 793059049,473 2409383, 102 1 ,422, 1615000 (3 ) w 1997 79589,0719741 23032659581 1940892005000 (2) 1998 71807,2039863 2701410, 847 1 , 534, 116,000 (5 ) 1999 8,080,2479333 301 ,294,691 197961439,000 (5 ) 2000 8167195739086 399,6519994 1 , 830175 1 ,000 (5 ) 2001 991099672,314 3721109,920 1 ,965 , 088, 000 (5 ) 2002 107539, 705,283 433 , 7741860 2, 08813561000 (5 ) 2003 1159851128, 952 514, 871 , 537 2,25 1 , 7171000 (5 ) ( 1 ) Source: Indian River County Property Appraiser (2) As of September 30. Source : Florida Bankers Association (3 ) As of June 30. Source : State of Florida, Division of Banking (4) Source : Building Departments-Indian River County, Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere (5) As of June 30. Source : FDIC website, www. fdic. gov INDIAN RIVER COUNTY, FLORIDA TABLE 15 PRINCIPAL TAXPAYERS SEPTEMBER 30, 2003 PERCENT 2002 OF TOTAL TAXABLE TAXABLE TAXPAYER TYPE OF BUSINESS VALUE( 1 ) VALUE Disney Vacation Development, Inc . Resort $ 691069,073 0.72% Florida Power & Light Electric Utility 6190985500 0.64 BellSouth Telecommunication Telephone Utility 585655, 192 0.62 Windsor Properties Land Development 50,3769579 0.53 .p Indian River Mall Associates Ltd. Regional Shopping Center 47,5741020 0.50 The New Piper Aircraft Aircraft Manufacturer 34, 121 , 169 036 John 's Island Club Inc. Club and Golf Course 30,849,571 032 Adult Community Total Services Retirement Community 309514, 130 0.32 Prime Outlet Center Ltd. Regional Shopping Center 295737,070 0.31 Wal-Mart Stores, Inc. Retail 28,577,908 0.30 $ 440,5737212 4.62% ( 1 ) Total Taxable Value $ 9,500, 891 ,213 Source : Indian River County Property Appraiser Note : Values are established as of January 1 of the previous calendar year, i . e . , January 1 , 2002, taxable values apply to the fiscal year ending 2003 . W ; K,::T, rr rr rr �r rr �r r� ri rr rr rr r r� rr �■r r rr r �r INDIAN RIVER COUNTY, FLORIDA TABLE 16 SCHEDULE OF INSURANCE SEPTEMBER 30, 2003 TYPE OF COVERAGE DETAILS OF LIMITS OF ANNUAL NAME OF BROKER PERIOD COVERAGE LIABILITY DEDUCTIBLES PREMIUM STATUTORY AD & D/L. B. BRYAN 10/01 /02 TO STATUTORY STATUTORY NONE $ 109673 09/30/03 BOILER & MACHINERY/ A. J. GALLAGHER 10/01 /02 TO PER SCHEDULE $ 5090009000 $ 5, 000 $ 9, 507 09/30/03 REAL & PERSONAL PROPERTY, BUSINESS 10/01 /02 TO PER SCHEDULE PER SCHEDULE $ 100,000 SIR $ 192059461 INTERRUPTION, EXTRA EXPENSE, VALUABLE 09/30/03 GENERAL LIABILITY, PAPERS, MOBILE EQUIPMENT, MISC . EQUIPMENT, $ 25 ,000 SIR AUTO COMPUTER EQUIPMENT, AUTO PHYSICAL PHYSICAL DAMAGE ; to DAMAGE, CRIME, GENERAL LIABILITY, AUTO $ 250,000 SIR WORKERS ' LIABILITY, PUBLIC OFFICIALS LIABILITY, COMP WORKERS ' COMPENSATION/EMPLOYER' S LIABILITY, CRIME (AJG) FLOOD/SCHLITT SERVICES 10/01 /02 TO $ 200,000 UNDERLYING $ 200,000 NONE $ 17, 324 09/30/03 LAYER SPECIAL EVENTS/FLORIDA LEAGUE 03/ 14/02 TO $ 1 MILLION $ 1 MILLION $ 250 $ 750 * OF CITIES (FLC) 03/ 13/03 LIQUOR LIABILITY/FLC 11 /01 /02 TO $ 1 MILLION $ 1 MILLION NONE $ 910 10/31 /03 * PREMIUM AT POLICY INCEPTION; INCREASED THROUGHOUT THE YEAR AS PROPERTY/EVENTS ADDED INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 1 of 5 SEPTEMBER 30 , 2003 DATEFOUNDED June 29, 1925 COUNTY SEAT Vero Beach FORM OF GOVERNMENT Elected Board of Commissioners Number of Commissioners : Five (5) Term of Office : Four (4) years LOCATION rn Southeast Coast of Florida AREA 1 497 Square Miles EDUCATION (2) Number of Schools Kindergarten through Grade 5 13 Number of Students 15,716 Middle Schools 6-8 3 Number ofAdministrative Senior High School 9- 12 2 and Teaching Personnel 1008 Charter Schools 5 Number of Non-Instructional Personnel 851 Alternative Center 1 ESE Special Needs School 1 ( 1 ) Source : Bureau of Business and Economic Research, University of Florida (2) Source : Indian River County School Board INDIAN RIVER COUNTY, FLORIDA TABLE 17 BUILDING PERMITS Pg 2 of 5 LAST TEN FISCAL YEARS INDIAN RIVER COUNTY MUNICIPALITIES COUNTYWIDE FISCAL # OF NEW # OF ADDITIONS & # OF NEW # OF ADDITIONS & # OF NEW # OF ADDITIONS & YEAR PERMITS CONSTRUCTION PERMITS ALTERATIONS PERMITS CONSTRUCTION PERMITS ALTERATIONS PERMITS CONSTRUCTION PERMITS ALTERATIONS 1994 955 1445618,788 1690 16256,022 477 5755989771 3009 12,3771431 1432 202217,559 4699 28,6335453 1995 870 1229696219 1490 16, 154,930 323 4159805079 2587 17, 149,968 1193 164,676298 4077 33,3047898 1996 970 1907335,512 1749 35, 132241 369 509047,590 2476 169121 ,421 1339 240,3839102 4225 519253,662 1997 908 1379713256 1781 235838,749 409 929552,325 2643 189544,614 1317 2302655581 3098 429383,363 1998 1039 180,3361969 1699 17,333,346 452 909073,878 3024 289195,353 1491 270,4109847 4723 45,528,699 1999 1236 1913181 ,886 1778 23,376,870 498 110, 112,805 3023 2176225464 1734 301294,691 4801 4499997334 2000 1336 248,5233923 1710 20,345,326 482 151 , 1285071 3213 2395107426 1818 399,651 ,994 4923 43,855,752 2001 1518 2593705,809 1664 249332,468 503 112,404, 111 3364 302747210 2021 372, 1095920 5028 54,606,378 2002 1658 291 ,5431816 1334 32, 118,404 599 142,231 ,044 3588 27,333, 128 2257 433,774,860 4922 59,4519532 2003 2084 3869495,461 1382 28,8171520 770 1289376,076 4141 371578,377 2854 5141871 ,537 57523 661395,897 Source : Building Departments - Indian River County ( including City of Vero Beach), Town of Orchid, Town of Indian River Shores, City of Sebastian, and City of Fellsmere . INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 3 OF 5 LAST TEN FISCAL YEARS CITRUS FISCAL PRODUCTION CITRUS PRODUCTION CITRUS ACREAGE/ YEAR (BOXES) ACREAGE PER ACRE . TOTAL ACREAGE 1994 18 , 890 , 000 69,240 272 , 82 21 , 8 1995 21 , 687, 000 699240 313 . 21 21 . 8 1996 185475 ,000 66, 561 277 . 56 20 . 9 000 1997 21 , 768 , 000 665561 327 . 04 20 . 9 1998 205437,000 645138 318 . 64 20 . 1 1999 1758709000 64, 138 278 . 62 20 . 1 2000 209438 ,000 60,293 338 . 98 18 . 9 2001 18 ,0419000 60,293 299 . 22 18 . 9 2002 1991265000 569012 341 . 46 17 . 6 2003 14 , 807, 000 569012 264 . 35 17 . 6 Source : Florida Department ofAgriculture and Consumer Services Website, www. nass. usda. gov/fl s .[§� lGEh^ri.isk . e'i .-.ita ibuYJwdYI .' • ., rr rr r rr r r� rr rr ars rr r r r� r� r� r rr �r rr INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 4 OF 5 LAST TEN FISCAL YEARS INCREASE TOTAL (DECREASE) __ __ ________ __ _________ REGISTERED VOTERS (2) ----- ----- ------ -- ----- --- - YEAR POPULATION ( 1 ) PERCENT REPUBLICAN DEMOCRATIC OTHER TOTAL 1994 979415 1 . 85 31 ,762 179763 39689 531214 1995 1005261 2. 92 323634 189282 4,637 55,553 1996 1029211 1 .94 359507 20,226 63256 625029 1997 104,605 2. 34 365895 21 ,443 7,700 66,038 �O 1998 106,675 1 .98 363481 20,761 8,394 653636 1999 109,579 2 . 72 375599 21 ,818 91613 699030 2000 1129947 3 . 07 389256 229064 113100 715420 2001 1159716 2.45 39,007 225875 11 ,975 73 ,857 2002 1189149 2. 11 409639 235819 135090 775548 2003 120,271 1 . 80 38,886 22,550 127879 743315 ( 1 ) Source : U . S . Census and Bureau of Business and Economic Research, University of Florida (2) Source : Indian River County Supervisor of Elections INDIAN RIVER COUNTY, FLORIDA TABLE 17 MISCELLANEOUS STATISTICAL DATA Pg 5 OF 5 LAST TEN FISCAL YEARS Year Total One Cent Tourist Tax Ended Half Cent TO Pledge to Sales September 30 Tax Collected Spring Training Facility Bonds Tax 1994 551 ,983 3 , 600 , 141 1995 671 ,295 _ 3 , 752 ,414 1996 873 ,393 _ 4 ,275 , 358 0 1997 982 ,023 4, 755 , 099 - 1998 1 ,000, 084 _ 5 ,425 , 803 1999 150585842 _ 5 , 871 , 632 2000 1 , 114, 916 6 , 205 , 862 2001 19408 , 046 ( 1 ) $ 244,623 6 , 521 , 024 2002 154109409 3475710 6 , 917, 278 2003 1 ,286, 885 321 , 721 7, 001 , 976 ( 1 ) A 4th cent was imposed effective Feburary 1 , 2001 r INDIAN RIVER COUNTY TABLE 18 DEPARTMENT OF UTILITY SERVICES WATER AND SEWER CUSTOMERS LAST TEN FISCAL YEARS Fiscal Year Water ERUs Sewer ERUs 1994 25 , 590 24,999 1995 27, 124 25 ,424 1996 30 , 635 0 26 ,416 1997 31 , 898 275724 1998 339747 289406 1999 359418 289065 2000 36 , 999 289544 2001 3 %404 293644 2002 419242 309297 2003 449420 329432 ERU- Equivalent Residential Unit INDIAN RIVER COUNTY TABLE 19 DEPARTMENT OF UTILITY SERVICES HIGH VOLUME CUSTOMERS SEPTEMBER 30, 2003 (THOUSANDS OF GALLONS) CUSTOMERS WATER SEWER Village Green Manufacturing Housing Park 28,762 28,762 Department of Correction 14,484 14,484 Disney's Vero Beach Resort 0014,004 N Isles of Vero Beach 14,004 127235 12235 Indian River County Jail 11 ,085 11 ,085 Sebastian River Medical Center 81085 542 8,542 River Run 87174 8, 174 Days Inn Vero Beach 7,381381, Grand Harbor Golf& Beach Club 7 72381 6,853 Windsor Properties 65853 61661 6,661 The County sold 2, 121 million gallons of water and 1 ,213 million gallons of wastewater in FY 2003 . The high volume customers accounted for 6 . 0% of total annual volume. .h n _ .x>t , . .-_ a 4- • ,,;:+d pyyNy" - - 'iaw,v r&$' INDIAN RIVER COUNTY TABLE 20 DEPARTMENT OF UTILITY SERVICES HISTORICAL RATE STRUCTURE LAST EIGHT FISCAL YEARS 1996 1997 1998 1999 2000 2001 2002 2003 2003 WATER RATES Billing Charge $ 2 . 00 $ 2.00 $ 2.00 $ 2 . 00 $ 1 . 29 $ 1 . 29 $ 1 . 29 $ 1 . 29 Base Facilities Charge (per ERU) Single-Family or Commercial 9.20 9. 20 9.20 9. 20 7. 76 7. 76 7. 76 7. 76 Multi-Family or Manufactured Home 9. 20 9.20 9. 20 9. 20 6. 60 6. 60 6. 60 6. 60 Volume Charge-per 1 ,000 gallons (per ERU) 0-3 ,000 gallons 1 . 75 1 . 75 1 . 75 1 . 75 2. 20 2. 20 2. 20 2. 20 3 ,001 -7,000 gallons 2. 15 2. 15 2. 15 2. 15 2 .42 2.42 2 . 42 2. 42 owo 7,001 gallons and over 2. 55 2. 55 2. 55 2 . 55 3 . 85 3 . 85 3 . 85 3 . 85 Excess Volume Surcharge - Greater than 13 ,000 gallons per month (per ERU) 2. 30 2. 30 2. 30 2. 30 7. 70 7. 70 7. 70 7. 70 Base Facilities Charge Where Capacity Is Reserved But Lines Are Not Yet Available (per ERU) Single-Family or Commercial 4 . 60 4. 60 4. 60 4 . 60 3 . 88 3 . 88 3 . 88 3 . 88 Multi-Family or Manufactured Home 4. 60 4. 60 4. 60 4. 60 3 . 30 3 . 30 3 . 30 3 . 30 SEWER RATES Billing Charge 2. 00 2 . 00 2. 00 2. 00 1 . 29 1 . 29 1 .29 1 . 29 Base Facility Charge ( per ERU) Single-Family or Commercial 13 . 50 13 . 50 13 .50 13 . 50 14 . 58 14 . 58 14 . 58 14 . 58 Multi-Family or Manufactured Home 13 . 50 13 . 50 13 . 50 13 . 50 12 .40 12.40 12.40 12 .40 Volume Charge-per 1 ,000 gallons Single-Family & Manufactured Homes( 1 ,000- 12,000) 3 .35 3 . 35 3 . 35 3 . 35 2. 86 2. 86 2. 86 2. 86 Multi-Family & Commercial (0- 13 ,000) 3 . 35 3 . 35 3 . 35 3 . 35 2 . 86 2. 86 2 . 86 2. 86 Multi-Family & Commercial (> 13 ,000) 4. 45 4. 45 4 . 45 4. 45 4. 29 4. 29 4. 29 4. 29 Base Facility Charge Where Capacity Is Reserved But Lines Are Not Yet Available (per ERU) Single-Family or Commercial 6. 75 6. 75 6. 75 6. 75 7. 29 7. 29 7. 29 7. 29 Multi-Family or Manufactured Home 6. 75 6. 75 6. 75 6. 75 6. 20 6. 20 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 O� � zQ ORIO�' a f + 4 IWO � "K y`i9 fi 3'b qs $ as y 1 m� N�a- 11 qt 121 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 ' Report on Compliance and on Internal Control over Financial Reporting 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 as of and for the year ended September 30, 2003 , and have issued our report thereon dated January 30, 2004 . 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 . Compliance As part of obtaining reasonable assurance about whether the Indian River County, Florida ' s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations 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 that are required to be reported under Government Auditing Standards . Internal Control Over Financial Reporting In planning and performing our audit, we considered the Indian River County, Florida ' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the ' financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or ' operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended solely for the information of the Board of County Commissioners, management, federal and state awarding agencies, pass-through entities 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 . eY4 1144 lPkal aamotia ,ss - t7i7ow &d Vero Beach , Florida January 30, 2004 "Providing Vision and Direction to our Clients" ' Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 185 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Independent Auditors Report on Compliance and Internal Control over Compliance Applicable to Each Major Federal Program And State Project The Honorable Board of County Commissioners Indian River County, Florida Compliance We have audited the compliance of Indian River County, Florida 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 Executive Office of the Governor' s State Projects Compliance Supplement that are applicable to each of its major federal programs and state projects for the year ended September 30 , 2003 . The Indian River County, Florida's major federal programs and state projects are identified in the summary of auditor ' s results section of the accompanying Schedule of Findings and Questioned Costs . Compliance with the requirements of laws, regulations contracts andgrants applicable to each of its major federal programs and state projects is the responsibility of the Indian River County, Florida ' 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 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 and Chapter 10 . 550, Rules of the Auditor General. Those standards, OMB Circular A - 133 , 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 state project occurred . An audit includes examining, on a test basis, evidence about the 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 Indian River County, Florida ' s compliance with those requirements . In our opinion, the 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 state projects for the year ended September 30, 2003 , Internal Control Over Compliance The management of the 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 Indian River County , Florida ' 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 and to test and report on internal control over compliance in accordance with OMB Circular A- 133 and Chapter 10 . 550, Rules of the Auditor General . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 1R � Harris, Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered Report on Compliance January 30, 2004 Page Two Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance ' with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program or state project being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses . Schedule of Expenditures of Federal Awards and State Projects We have audited the basic financial statements of Indian River County , Florida as of and for the year ended ' September 30 , 2003 , and have issued our report thereon dated January 30, 2004 . Our audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards and state projects is presented for purposes of additional analysis as required by ' OMB Circular A- 133 and Chapter 10 . 550 , Rules of the Auditor General 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 . This report is intended solely for the information of the Board of County Commissioners , management, federal and state awarding agencies, pass-through entities 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. �f '� COYkGtrilMt , '401W f 01W , PJU 0 QeeeUA>!cu ev4l9 d Pubiti QL:t&^4a4t .s - L0ht4 *&d Vero Beach , Florida January 30, 2004 187 Indian River County, Florida Schedule of Expenditures of FederalAwards And State Projects - For the Fiscal Year Ended September 30, 2003 Federal/StateAgency CFDA Contract/ Pass-through Entity CSFA Grant to Federal Program/State Project No. No. Transfers Expenditures St ubrecipients Department of Housing and Urban Development: Direct Programs : Section 8 Housing Choice Voucherss 14 .871 FL- 132-VO-014 to 017 $ 17365 , 528 $ Supportive Housing Program-Transitional Housing 14 .235 FL29B009001 2059858 Shelter Plus Care 14 .238 FL29CIO9001 749505 Supportive Housing Program-Youth Crisis Center 14 .235 FL29BI09002 4 ,933 Supportive Housing Program- Homeless Management Information Systems 14.235 FL29CIO9003 323735 Indirect Programs : Passed through Florida Department of Community Affairs : Community Development Block Grant/State 's Program 14 . 228 03DB- IA- 10-40-01 -H- 12 359098 a Total Department of Housing and Urban Development: 1 , 7181657 Federal Transit Administration : Direct Programs : Federal Transit Formula Section 5307 Grant 20.507 FL-90-X472 Federal Transit Formula Section 5307 Grant 20. 507 FL-90-X416 605,948 Federal Transit Formula Section 5307 Grant 5 , 4 20.507 FL-90-X393 711 ,22224 Federal Transit Formula Section 5307 Grant 20. 507 FL-90-X378 4,440 Total Federal Transit Administration : 740,746 . Federal Highway Administration : Indirect Programs : Passed through Florida Department of Transportation : Highway Planning and Construction- CR 512/Fellsmere Sidewalk 20 .205 AH923 * 79799 k Highway Planning and Construction- Roseland Road Sidewalk 20.205 AI372 * 10,570 Highway Planning and Construction- Indian River Bikepath 20 .205 AN844 500 Highway Planning and Construction- 26th Street Bridge Replacement 20.205 AN843 403 Highway Planning and Construction- Metropolitan Planning Organization 20.205 AA080 4679724 Total Federal Highway Administration : 486,996 Department of Homeland Security: Indirect Programs : Passed through Florida Dept. of Community Affairs: Continuing Operations/Government Grant 97.052 03 -FT 1B - 10-40-01 -472 1000 Emergency Management Performance Grant 97.042 03 -13&0440-40-01 -031 305919 Total Department of Homeland Security: 409919 Department of Justice: Direct Programs : State Criminal Alien Assistance Program 16.606 N/A 38, 118 Local Law Enforcement Block Grant 16 . 592 2002-LBBX-2277 66,289 Public Safety Partnership and Community Policing- COPS in School 16. 710 2000SHWX0650 32, 168 *Prior year expenditures not previously reported on Schedule 188 Indian River County, Florida ' Schedule of Expenditures of Federal Awards And State Projects (Continued) For the Fiscal Year Ended September 30, 2003 Federal/StateAgency CFDA Contract/ ' Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients ' Department of Justice, continued : Indirect Programs : Passed through Florida Department of Law Enforcement: Byrne Formula Grant Program-Multi Agency ' Drug Enforcment Unit 16 . 579 03 -CJ-5A- 10-40-01 - 140 $ 89, 129 $ Byrne Formula Grant Program- Substance Abuse Advisory Council 16 . 579 03 -CJ-5A- 10-40-01 - 142 15 ,932 Byrne Formula Grant Program- ' Prevent 11I 16 . 579 03 -0-5A- 10-40-01441 549262 Passed through Office of the Attorney General : Crime Victim Assistance Program 16. 575 V2025 31 ,262 ' Total Department of Justice: 327, 160 US Fish and Wildlife Services : ' Indirect Programs : Passed through Florida Fish and Wildlife Conservation Commission : Pelican Island National Wildlife Refuge 15 .617 1448-40181 -00-K-007 7,350 Sport Fish Restoration-Artificial Reef Grant 15 .605 FWCC-02105 142536 Total US Fish and Wildlife Services: 21 886 Office of Child Support Enforcement: Indirect Program : Passed through Florida Department of Revenue : Child Support Enforcement-Title IV D- Sheriff Service of Notices 93 . 563 IZ109 59029 Child Support Enforcement-Title IV D- Sheriff Service of Notices 93 .563 00331 845 Child Support Enforcement-Title IV D- Sheriff Service ofNoticies 93 . 563 CC331 266,928 Total Office of Child Support Enforcement: 272 802 Office of Library Services : Indirect Program : Passed through Florida Department of State : State Library Program-Summer Library Reading Program 45 . 310 02-LSTA-D- 10-E 6,452 State Library Program-Born to Read Grant 45 .310 02-LSTA-E-07 52 , 776 Total Office of Library Services : 59,228 Environmental Protection Agency: Indirect Program : Passed through Florida Department of Environmental Protection : Nonpoint Source Implementation Grants" Vero Lake Estates Stormwater 66.460 WM803 91107 Nonpoint Source Implementation Grants - East Gifford Stormwater 66 .460 WM836 979691 ' Total Environmental Protection Agency: 1069798 TOTAL EXPENDITURES OF FEDERAL AWARDS : $ 31034,446 740, 746$ r 189 Indian River County, Florida Schedule of Expenditures of FederalAwards And State Projects (Continued) For the Fiscal Year Ended September 30, 2003 Federal/State A enc g Y CFDA Contract/ Pass-through Entity CSFA Grant Federal Program/State ProjectTransfers to No. No. Expenditures Subrecipients STATE OF FLORIDA Department of Community Affairs : Direct Project: Evaluation/Appraisal Reports and Planning Assistance- Public Schools 52 .004 03 -DR-36- 10-40-01 -004 $ 71700 $ Residential Construction Mitigation Program 52 .016 03 -RC- I 1 - 10-40-01 -028 Emergency Management Programs-Emergency 46,920 Management Base Grant 52.008 02-CP-04- 10-40-01 -031 Indirect Projects : 103, 196 Passed through Florida Communities Trust: Florida Forever Act-Hallstrom Farmstead 52 .002 02-CT5T01 -FI -A1 -055 Florida Forever Act-Lost Tree Islands 1 ,232,373 52 .002 02-CT-5P_0 59291 , 752 Total Department of Community Affairs : 6, 681 ,941 Florida Housing Finance Agency: Direct Project: State Housing Initiatives Partnership 52 . 901 N/A 882,271 Total Florida Housing Finance Agency: 882,271 Department of Health and Rehabilitative Services : Direct Project : County Awards Grant-Emergency Medical Services 64 . 005 C2031 39,691 Total Department of Health and Rehabilitative Services : 39,691 Department of Environmental Protection : Direct Projects : Florida Recreation Development Assistance Program- Fellsmere Old School 37.017 M99048 Beach Erosion Control Program 37.003 98IR1 90,898 * Beach Erosion Control Program . 69,087 37003 981R1Statewide Surface Water Restoration and Wastewater 71393,036 Projects - 37.039 LP0328 672 Waste Tire and Playground Surfacing Grants 37 .015 998, WT330 16,770101 Total Department of Environmental Protection : 8,568, 394 Department of State: Division of Library Services : Direct Programs : State Aid to Libraries 45 .030 03 -ST 22 250,909 Total Department of State: 250,909 Department of Transportation : Direct Projects : Commission for the Transportation Disadvantaged Planning Grant 55 . 002 AM012 Commission for the Transportation Disadvantaged 8,604 Planning Grant 55 .002 AK325 2,446 *Prior year expenditures not previously reported on Schedule 190 Indian River County, Florida ' Schedule of Expenditures of Federal Awards And State Projects (Continued) For the Fiscal Year Ended September 30, 2003 Federal/StateAgency CFDA Contract/ ' Pass-through Entity CSFA Grant Transfers to Federal Program/State Project No. No. Expenditures Subrecipients ' Department of Transportation continuted : Transit Corridor Grant 55 .013 AN083 48,450 East Gifford Stormwater AN371 449508 Public Transit Block Grant 55 . 010 AL321 302,974 iTotal Department of Transportation : 406, 982 Department of Agriculture and Consumer Services : ' Direct Projects : Water Policy Best Management Practices 42 . 017 006800 78 ,331 Fairgrounds Agricultural Building/Livestock Pavillion 42 .001 5649 2029970 ' Total Department of Agriculture and Consumer Services : 281 , 301 Justice Administrative Commission : Direct Projects : Dependency Counsel/Court Representation Grant 21 .001 N/A 23 ,939 Total Office of State Courts Administrator: 23 ,939 Department of Management Services : Direct Project: Wireless 911 Emergency Telephone System 72.001 N/A 1409568 Total Department of Management Services : 1409568 Department of Revenue: Direct Project: Digital Map Conversion Grant Program- Statewide Basemap 73 .023 N/A 79500 Facilities for Retained Spring Training Franchise- Dodgertown 73 .016 N/A 500 004 Total Department of Revenue: 5079504 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE : $ 17, 7839500 $ _ United States Department of Agriculture : FHA Acquisition and Construction Revenue Bonds Victory Park Phase I 10.405 09-031 -596000674-01 -5 $ 190579000 Victory Park Phase II 10.405 09-031 -596000674-01 -5 151189000 Orangewood Park Apartments 10.405 09-031 -596000674-01 -2 193639400 TOTAL BONDS PAYABLE (FEDERALLY GUARANTEED): $ 395389400 The accompanying notes are an integral part of the schedule. 191 Indian River County, Florida Notes to Schedule of Expenditures of Federal Awards and State Projects Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES The accounting policies and presentation of the Single Audit Report of Indian River County, Florida, the "County") ty, nda, 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 T . The reporting entity consists of Indian River County, the rim { 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 . I 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 measur- able 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 con- siders revenues to be available if they are collected within 40 days after the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting . , t k`. 192 Indian River County, Florida Schedule of Findings and Questioned Costs — Federal Awards and State Projects Year Ended September 30, 2003 Section I — Summary of Auditor's Results Financial Statements ' Type of auditor's report issued Unqualified Internal control over financial reporting : Material weakness(es) identified? Yes Reportable condition(s) identified not X No considered to be material weaknesses ? Yes Noncompliance material to financial statements X None reported noted? Yes X No Federal Awards and State Projects Internal control over major programs : ' Material weakness(es) identified? Yes Reportable condition(s) identified not X No considered to be material weaknesses? Yes Type of auditor's report issued on compliance for X None reported 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 : ' CFDA Number Name of Federal Program or Cluster 14 . 871 HUD Section 8 Rental Assistance 14 .235 HUD Family Options Transitional Housing ' 20 . 507 FTA Section 5307 Grant 10 .405 FHA Acquisition & Construction Revenue Bonds : Victory Park Phase I ' Victory Park Phase II Orangewood Park Apartments CSFA Number Name of State Project 52 . 002 DCA Lost Tree Islands, Hallstrom Farmstead 52 . 901 FHFA — State Housing Initiatives Partnership 37 . 003 FDEP Beach Preservation Plan 37. 039 FDEP Integrated Water Resource System rDollar threshold used to distinguish between Type A and Type B programs $300,000 Auditee qualified as low-risk auditee? X Yes 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). ' 193 ���ll i '� '` �, � .: a •i' '• • ~ i � � \�'� Q� Auditor General Reports Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 ' Vero Beach, FL 32963 Phone 772-234.8484 Fax 772-234-8488 Management Comments ' The Honorable Board of CountyCommissioners ers 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, 2003 , and have issued our report thereon dated January 30 , 2004 . 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 Auditor ' s Report on Compliance and Internal Control over Financial Reporting, Independent Auditor ' s 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 January 30 , 2004, should be considered in conjunction with this management letter. We have also issued separate management letters dated January 30, 2004, 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 . The Rules of the Auditor General ( Section 10 . 554 ( 1 )(g) l . a) 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 ) improper or inadequate accounting procedures ; (4) failures to properly record financial transactions ; and (5 ) 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. We have also tested your operations for compliance with applicable laws and have provided additional ' comments required to be included by reason of the Rules of the Auditor General of the State of Florida . ' COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Financial Condition Assessment iAs required by the Rules of the Auditor General (Sections 10 . 554(g)(6 )c and 10 . 556 applied ), we pp led 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 . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 195 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two Determination of Financial Emergency - F. S . Section 218.503 ( 1 ) Nothing came to our attention which indicated that the County is, or during the year ended September 30 , 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( l ) of the Florida Statutes . Florida Department of Banking and Finance Financial Report The annual financial report required to be fled with the Florida Department of Banking and Finance pursuant to Section 218 .32 of the Florida Statutes has been completed . We compared this report with the financial audit report and noted no exceptions for the fiscal year ended September 30, 2003 , Compliance With Section 218 .415 As required by the Rules of the Auditor General ( Section 10 . 554( 1 )(g)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 . 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 . es4l4 l hblie Q !! nodrmr4s - ehiA *tjd Vero Beach, Florida January 30, 2004 196 ' BOARD OF COUNTY COMMISSIONERS 1 1 1 1 1 1 ' 197 � . - a00 Q1�I1. Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 ' Vero Beach, FL 32963 Phone 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, 2003 , 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 , 2003 , 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 , 2003 , 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 January 30, 2004 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 and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . �f Gl1tA�t L' owcc: rrt�+rt4orw , PjW * Addet3l�%11J ' Vero Beach, Florida January 30 , 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 199 Indian River County, Florida Board of County Commissioners Balance Sheet Governmental Funds September 30, 2003 Road Secondary Improvement Roads ASSETS General Fees Construction Transportation Cash and cash equivalents $ 16,074,421 $ 23 , 510, 512 $ 22,6891640 $ 3 ,4541457 Accounts receivable 452, 824 - - 41843 Special assessments receivable - - - 439255 Due from other funds 18 ,000 - 295, 000 _ Due from other governments 499717723 219250 5399012 210, 191 Inventories 643598 Deposits 820 - - 19265 Advance to other funds - 655,000 Total assets $ 21 , 582,386 $ 23 ,5315762 $ 24, 178,652 $ 3 ,714,011 LIABILITIES AND FUND BALANCES Liabilities : Accounts payable $ 19027,854 $ 405, 149 $ 547,285 $ 379,282 Retainage payable 4,474 489294 452, 172 2,325 Due to other funds _ Due to other governments 19438 _ _ _ f Accrued interest payable Deferred revenues 75 ,236 - - 43 ,255 Other deposits held in escrow 3692269 Total liabilities 11478,271 4539443 999,457 4249862 Fund balances : Reserved for: Debt service Capital projects Advances to other funds - - 655 ,000 Unreserved, reported in : General fund 20, 104, 115 Special revenue funds - 23 ,0789319 22, 524, 195 _ 392893149 Total fund balances 20, 1042115 2390781,319 23 , 179, 195 3 ,289, 149 t t Total liabilities and fund balances $ 21 ,582,386 $_ 239531 , 762 $ 249178,652 $ 3 ,714,011 The accompanying notes are an integral part of the financial statements, 200 ' Emergency Optional Other Total Services Land Sales Governmental Governmental District Acquisition Tax Funds Funds $ 69600,707 $ 2,4659367 $ 32,7499243 $ 1895439559 $ 12690879906 17,014 719317 545,998 43 ,255 313 ,000 2029882 117219911 4842593 8, 1511562 64,598 609372 629457 - - - - 655 ,000 $ 6: 820,603 $ 244654367 $ 34,471 , 154 $ 19, 159,841 $ 135,923 , 776 ' $ 288,482 $ 11807 $ 19739, 665 $ 952,023 $ 553419547 502,657 77,583 190879505 3139000 3139000 ' - - - - 1 ,438 377,014 3779014 3 ,856 - - 1259000 2479347 - - - 369,269 2929338 1 ,807 29242, 322 19844,620 79737, 120 191789248 191789248 3292289832 696049951 389833 ,783 655,000 ' - - - - 2051049115 61528,265 2,463 , 560 - 915322022 67,415 , 510 635289265 25463 ,560 3292289832 17,3159221 12891869656 ' $ 6,820,603 $ 294659367 $ 34,4719154 $ 1911599841 $ 135 ,923 , 776 201 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 , 2003 Road Secondary Improvement Roads General Fees Construction Transportation REVENUES Taxes $ 49,897,576 $ - $ 3 ,222,742 $ Licenses and permits 549,292 - - 18, 111 Intergovernmental 11 ,389,771 - - 2,3599955 Charges for services 596909879 - - 748,334 Fines and forfeitures 19084,711 Special assessments - 4,596,469 - 899958 Interest 612,847 427,414 489,056 859174 Miscellaneous 896,403 329834 66,467 695402 Total revenues 70, 121 ,479 5,0569717 3 ,778,265 39370,934 EXPENDITURES Current : General government 7,8183877 - - 7379838 Public safety 2,203 ,274 Physical environment 455 ,842 Transportation 198249755 1 ,3949865 6,355 ,098 95709273 Economic environment 5069097 Human services 3 ,645,667 Culture/Recreation 8,070,056 Court related 1 ,264,917 Debt service : Principal Interest and fiscal charges Capital projects Total expenditures 25,789,485 094,865 6,355,098 10,447, 111 Excess of revenues over (under) expenditures 44,331 ,994 3 ,6613852 (29576,833) (7,076, 177) OTHER FINANCING SOURCES (USES) Transfers in - - - 7,413 ,988 Transfers out (7,614,358) Transfers to constitutional officers (345858,246) Transfer to paying agent Debt proceeds Total other financing sources (uses) (42,472,604) - 73413 ,988 Net change in fund balances 19859,390 3 ,661 ,852 (23576,833 ) 3379811 Fund balances at beginning of year 18,244,725 191416,467 2557563028 2,951 ,338 Fund balances at end of year $ 20, 104, 115 $ 2310781319 $ 232179, 195 $ 3 ,289, 149 The accompanying notes are an integral part of the financial statements . 202 r r ' Emergency Optional Other Total Services Land Sales Governmental Governmental District Acquisition Tax Funds Funds ' 2 0 - 11 678 272 4 444 $ 16,9 8,05 $ $ $ ,393 , $ 8691209084 ' - - - - 5679403 939369 8,833 , 142 1 ,288,246 109884,523 349849,006 254859429 - - 4319865 9,3569507 = = = 1819841 1 ,266,552 245 ,703 49932, 130 2009508 589686 609,077 412,497 2,895,259 219,901 - 29309 676,861 11964, 177 19,927,257 89891 ,828 1395779904 17,226,734 14199519118 - - - 111359921 9,692,636 179988,214 - - 1189839 20,310,327 = 17, 1051397 = 525250 17,6139489 1589918 19,442,909 77,753 5835850 = = = 2,5339250 6, 178,917 109308,012 1893785068 17,800 1 ,2829717 r277, 147 - - 2,5455000 2,8221147 23 ,052 - - 1 ,604,852 1 ,627,904 - - 7,578,310 4,649,695 1292289005 18,288,413 179105 ,397 79578,310 23 ,202,290 110, 160,969 ' 11638,844 (8,2135569) 5,999,594 (5 ,9751556) 319790, 149 ' = _ - 842,500 812569488 ,00 (8000) (89414,358) (4439849) - - (339,442) (359641 ,537) (7,800,000) (798009000) 79800,000 79800,000 (443 ,849) - (8009000) 503 ,058 (3597995407) 1 , 194,995 (8,2139569) 5 , 199,594 (5 ,472,498) (49009,258) 59333 ,270 1096779129 279029,238 2257879719 132, 195,914 $ 615289265 $ 254639560 $ 32,2281832 $ 179315,221 $ 128, 186,656 1 203 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 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Taxes $ 48,299,284 $ 48,299,284 $ 49,8979576 $ 19598,292 Licenses and permits 408,500 412,500 549,292 1363792 Intergovernmental 99719,503 11 ,7999870 11 ,3899771 (410,099) r Charges for services 49109,616 53009,312 59690, 879 681 ,567 Fines and forfeitures 8775562 9499093 084,711 1353618 Interest 788,500 788,500 6123847 ( 175,653 ) 1 Miscellaneous 360,993 653 ,984 896,403 2429419 x Total revenues 64,563 ,958 679912,543 709121 ,479 2,208,936 EXPENDITURES Current: General government 73684,913 8,271 , 161 7,8189877 4529284 Public safety 19534,206 2,297,573 29203274 949299 Physical environment 375,607 954,363 455,842 498,521 Transportation 7359590 2, 180,312 1 ,824,755 3559557 Economic environment 527,675 535,544 506,097 29,447 Human services 395879844 39842,806 3 ,645,667 197, 139 Culture/Recreation 8,295,612 8,7319284 81070,056 661228 Court related 1 ,563 , 116 1 ,2821535 1 ,264,917 17,618 Total expenditures 24,3049563 28,095,578 25,7895485 293069093 Excess of revenues over (under) expenditures 40,259,395 399816,965 4493319994 4,515,029 OTHER FINANCING SOURCES (USES) Transfers in - 78,396 - (78,396) Transfers out (8,017,947) (8,0975553 ) (796149358) 483 , 195 Transfers to constitutional officers (34,627, 189) (3528029488) (349858,246) 944,242 Total other financing sources (uses) (429645, 136) (43 ,8219645) (423472,604) 1 ,349,041 Net change in fund balances (2,3851741 ) (4,0049680) 1 ,8591390 5 ,8649070 Fund balances at beginning of year 2,3859741 45004,680 18,244,725 Fund balances. at end of year $ - $ - $ 20, 104, 115 The accompanying notes are an integral part of the financial statements . 204 ' Indian River County, Florida Board of County Commissioners Statement of Revenues, Expenditures, and Changes in Fund Balances = Budget and Actual Road Improvement Fees Fund ' For the Year Ended September 30 , 2003 Variance with ' Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative ) REVENUES Special Assessments $ 1 ,306,250 $ 198069250 $ 4,5963469 $ 257909219 Interest 1439461 143 ,461 4275414 2835953 ' Miscellaneous - - 329834 329834 Total revenues 1 ,449,711 119495711 55056,717 351075006 ' EXPENDITURES Current : Transportation 19574,466 11 ,885 ,694 193949865 10,490,829 Total expenditures 115749466 11 ,8859694 153945865 109490,829 Net change in fund balances ( 1249755) (99935 ,983 ) 3 ,6613852 139597,835 ' Fund balances at beginning of year 1245755 999355983 19,4165467 Fund balances at end of year $ - $ - $ 23 ,078,319 The accompanying notes are an integral part of the financial statements . ' 205 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 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Taxes $ 3 ,037,791 $ 31037,791 $ 392227742 $ 184,951 Interest 5709000 5709000 489,056 (80,944) Miscellaneous - 36,467 66,467 30,000 Total revenues 39607,791 316449258 317789265 1349007 EXPENDITURES Current : Transportation 4,034, 138 23 ,565, 115 61355,098 17,210,017 Total expenditures 49034, 138 23 ,565, 115 693559098 17,210,017 t y. Net chane in fund balances g (426,347) ( 199920, 857) (2,576,833) $ 179344,024 Fund balances at beginning of year 4269347 19,9209857 25,7569028 Fund balances at end of year $ - $ - $ 2331793195 206 rIndian 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, 2003 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) REVENUES Licenses and permits $ 9,500 $ 99500 $ 185111 $ 89611 Intergovernmental 2,3319238 2,331 ,238 293595955 28,717 Charges for services 450,300 450,300 7489334 298,034 Special assessments 142,500 142,500 895958 (529542) Interest 909250 90,250 859174 (51076) Miscellaneous 289500 329500 69,402 369902 Total revenues 310529288 31056,288 353704934 314,646 ' EXPENDITURES Current: General government 757,744 8109799 737,838 72,961 ' Transportation 10, 164, 117 10.619.862 9.709.273 910.589 Total expenditures 10,921 , 861 11 ,430.661 104447, 111 983550 Excess of revenues over (under) expenditures (7,869,573 ) (8,3745373 ) (7,076, 177) 1 ,298, 196 OTHER FINANCING SOURCES (USES) Transfers in 718135988 718139988 714139988 (4005000) Total other financing sources (uses) 79813 ,988 798135988 79413 ,988 (4009000) Net change in fund balances (555585) (560,385) 337,811 $ 8982196 Fund balances at beginning of year 55 ,585 560,385 2,951 ,338 ' Fund balances at end of year $ - $ - $ 392899149 The accompanying notes are an integral part of the financial statements . 207 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 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive REVENUES Original Final Amounts (Negative) Taxes $ 169750,991 $ 16,750,620 $ 163928,050 $ 177,430 Intergovernmental 149791 56,940 939369 36,429 Charges for services 136779225 11858,500 2,485,429 626,929 Interest 213 ,750 213 ,750 2002508 ( 13242) Miscellaneous 1994399 220,893 219.901 (992) Total revenues 1898565156 19210%703 19,927,257 8269554 1 i EXPENDITURES Current : Public safety 17,455,782 18,8319264 17,988,214 843 ,050 Debt service : Principal 2729847 277, 147 277, 147 Interest and fiscal charges 27,353 239053 239052 1 Total expenditures 17,755,982 19, 131 ,464 18288,413 843 ,051 Excess of revenues over (under) expenditures 19100, 174 (30,761 ) 19638,844 19669,605 OTHER FINANCING USES Transfers to constitutional officers (422,033) (444,038) (443 ,849) 189 Total other financing uses (422,033 ) (444,038) (443 , 849) 189 Net change in fund balances 6789141 (474,799) 1 , 194,995 1 ,669,794 Fund balances at beginning of year - 4749799 5,3331270 - Fund balances at end of year $ - $ - $ 6,5285265 $ - The accompanying notes are an integral part of the financial statements, 208 ' 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 , 2003 Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) ' REVENUES Intergovernmental $ - $ 795199788 $ 898339142 $ 133139354 Interest - - 58,686 58,686 Total revenues - 79519,788 89891 ,828 1 ,3729040 EXPENDITURES ' Current: Physical Environment 990509000 1890075499 173105 ,397 9029102 Total expenditures 99050,000 1890079499 179105 ,397 902, 102 ' Net change in fund balances (9,050,000) ( 1094875711 ) (8,2135569) 2,2745142 ' Fund balances at beginning of year 950509000 1054879711 109677, 129 - Fund balances at end of year $ - $ - $ 23463 ,560 $ - r 209 N Y��j � l ' Indian River County, Florida Board of County Commissioners Statement of Net Assets ' Proprietary Funds September 30, 2003 ' 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 $ 958719071 $ 3 , 292 $ 312570 , 797$ 49162 , 908 $ 45 , 6085068$ 7 , 918 ,454 Accounts receivable - net 2335770 574 2 , 0601026 2 ,294 , 370 309 , 160 Due from other governments 789509 95000 888 , 528 976 , 037 Interest receivable 788 , 555 788 , 555 Inventories - 542315 5919219 239557 669 , 091 67 , 536 Deposits - 1 , 000 - 1 , 000 - ' Total current assets 10 , 183 , 350 68 , 181 35 , 899 , 125 411869465 509337 , 121 89295 , 150 Restricted assets : Cash and cash equivalents 105623 , 174 33 , 9481516 210 , 440 44 , 7825130 - Investments - 583 , 790 - 583 , 790 - ' Impact fees receivable - - 12255 , 129 - 192552129 - Special assessments receivable 59509 ,498 52509 , 498 Total restricted assets 10 , 623 , 174 583 , 790 40 , 713 , 143 2109440 52 , 130 , 547 Non-current assets : ' Liens receivable _ - 1137420 - 113 ,420 Unamortized bond costs 92 , 809 7639356 856 , 165 Intangible assets 79 ,750 459000 124 , 750 Capital assets - non-depreciable 11 , 3925477 669 , 630 493462834 - 169408 , 941 - ' Capital assets - depreciable 1327105836 8 ,4609141 242 , 9629055 1 , 8475083 266 , 980 , 115 450 , 349 Accumulated depreciation ( 717702655 ) ( 1 ,720 , 667) ( 83 , 0552520 ) ( 316 , 930 ) ( 92 , 863 , 772 ) (4319349 ) Total non-current assets 17 ,412 , 408 71502 , 913 165 , 1752145 1 , 530 , 153 191 , 619 , 619 19 , 000 Total assets 38 , 218 , 932 83153 , 884 241 , 787 , 413 5 , 927 , 058 294 , 087 , 287 813149150 ' LIABILITIES Current liabilities (payable from current assets) : Accounts payable 513 , 773 759097 5183553 78 ,288 111853711 219 , 234 Claims payable - - - - 4 , 581 000 Due to other governments 79524 59931 51046 18 , 501 ' Deferred revenues - 251757 - - 25 , 757 Total current liabilities (payable from current assets) 513 , 773 108 , 378 5249484 835334 1 ,229 , 969 4 , 800 ,234 Current liabilities (payable from restricted assets) : ' Accounts payable - _ 887 , 555 8872555 Retainage payable 168 , 388 1685388 Accrued interest payable - 28 , 398 328 , 002 - 356 ,400 - Bonds payable - 395 , 000 1 , 855 , 000 - 212502000 - ' Closure and maintenance costs payable 7 ,2111362 - - 7 , 211 , 362 - Customer deposits 649700 2 , 077 , 421 210 , 440 25352 , 561 Total current liabilities (payable from restricted assets) 7,276 , 062 4239398 593169366 2109440 13 , 226 , 266 Non-current liabilities : ' Accrued compensated absences 116 , 681 83 ,499 3637317 86 , 481 649 , 978 57 ,299 Advance from other funds 6555000 655 , 000 Bonds payable - net of unamortized discount 6 , 1481359 68 , 772 , 727 - 74 , 9212086 Total non-current liabilities 1162681 6 , 886 , 858 69 , 136 , 044 86 ,481 763226 , 064 571299 Total liabilities 7 , 9062516 7 , 4182634 74 , 976 , 894 3802255 909682 , 299 4 , 8579533 ' NET ASSETS Invested in capital assets, net of related debt 17, 3322658 8652745 93 , 6259642 12530 , 153 113 , 3542198 19 ,000 Restricted for: ' Debt service - 32 ,917 1547583 1879500 - Capital projects - 4227839994 - 421783 , 994 Unrestricted 1229799758 ( 1639412 ) 30 ,2462300 47016 , 650 47 , 079 , 296 3 , 437 , 617 Total net assets $ . 3093 121416$ 735 .250$ 166 . 810 . 519$ 5 . 546 . 803 203 .404 , 988$ 3 , 456 , 617 The accompanying notes are an integral part of the financial statements. ' 211 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 , 2003 Business-type Activities Enterprise Funds Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds OPERATING REVENUES Charges for services $ 10, 187,432 $ - $ - $ 21432,420 Charges for services pledged as security for revenue bonds - 321129087 2192109935 _ Total operating revenues 109187,432 39112,087 21 ,210,935 21432,420 OPERATING EXPENSES Personal services 2,4299504 815,561 5 ,9222537 19453 ,486 Material, supplies, services and other operating 59590,573 1 ,510,618 4,7421107 5223613 1 Depreciation 559, 197 1359297 10, 163 ,364 57,655 Total operating expenses 89579,274 2,461 ,476 20,8289008 2,033 ,754 Operating income ( loss) 1 ,608, 158 650,611 3829927 398,666 NONOPERATING REVENUES (EXPENSES) Interest income 429,553 - - 819809 Interest income pledged as security for revenue bonds - 23 ,391 13797,260 - Operating grants 2419765 - - 29, 897 Gain on disposal of equipment 275740 2,087 30,520 33020 Interest expense - (365,067) (4,0731434) - Bond amortization expense - ( 149742) (989388) Intangible amortization expense (99867) - ( 159000) - Loss on disposal of equipment - ( 1 ,622) (295) Total nonoperating revenues (expenses) 689, 191 (355,953 ) (2,329,440) 84,829 Income before transfers and capital contributions 29297,349 294,658 ( 1 ,946,513 ) 483 ,495 Transfers - - - 1579870 Capital contributions - - 145794,002 - Capital contributions pledged as security for revenue bonds - - 5,002,904 - Change in net assets 2,2979349 294,658 17,850,393 641 ,365 Total net assets - beginning 28,0159067 440,592 14899609126 4,9059438 Total net assets - ending $ 3093125416 $ 735250 $ 166,8105519 $ 53546,803 The accompanying notes are an integral part of the financial statements . 212 Governmental ' Activities Internal Total Service Funds $ 12,619,852 $ 12,9319729 ' 24,323 ,022 369942,874 12,931 ,729 10,621 ,088 2,724,528 12,365,911 99789,249 ' 109915,513 109956 33 ,9029512 129524,733 ' 3 ,0405362 406,996 ' 511 ,362 131 ,938 1 ,820,651 - ' 271 ,662 - 63 ,367 525 (4,4389501 ) ' ( 1139130) - (249867) - ( 1 ,917) - ' ( 199119373 ) 132,463 ' 191289989 539,459 157,870 143794,002 - 5 ,002,904 - 215083 ,765 5395459 ' 182,321 ,223 259175158 $ 20394049988 $ 3 ,4569617 ' 213 Indian River County, Florida Board of County Commissioners Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2003 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County CASH FLOWS FROM OPERATING ACTIVITIES District Course Utilities Cash received from customers $ 10, 167,045 $ 311155373 $ 21 ,8633806 Cash paid to suppliers for goods and services (593999115) ( 1 ,590,352) (49689,438) Cash paid to employees for services (2,425, 112) (7979558) (6, 197,698) Net cash provided by operating activities 2,3429818 727,463 10,976,670 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Operating grants 241 ,765 - 29,897 Net cash provided by noncapital financing x activities 241 ,765 - 29,897 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds/notes - (375 ,000) ( 19765 ,000) Interest paid on long-term debt - (3599411 ) (49044, 887) Proceeds from sale of fixed assets 275740 29087 30,225 Purchase of fixed assets (9649917) ( 105, 544) ( 10,627,285) Bond paying agent fees - - ( 1 ,062) Capital contributed by others - - 13 ,607,813 Proceeds from advance from other fund - 30,000 _ Net cash used in capital and related financing activities 937, 177 ( ) (8079868) (23800, 196) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 429,553 23 ,391 158489164 Proceeds from investment maturity - 5399576 Net cash provided by investing activities 4297553 562,967 118489164 Net increase (decrease) in cash and cash equivalents 2,0762959 482,562 1054,535 Cash and cash equivalents at beginning of year 181417,286 1049520 55,464,778 Cash and cash equivalents at end of year $ 205494,245 $ 5879082 $ 65,5199313 Classified as $ Current assets $ 9,871 ,071 $ 33292 $ 31 ,570,797 Restricted assets 103623 , 174 583 ,790 33 ,9485516 Totals $ 209494,245 $ 587,082 $ 6595199313 The accompanying notes are an integral part of the financial statements . 214 Governmental ' Other Activities Enterprise Internal Funds Total Service Funds ' $ 295359545 $ 3796819769 $ 129744,390 (494,452) ( 12, 1739357) (9, 512,686) ' ( 1 ,459,697) ( 10, 880,065) (2,726,467) 5819396 14,6289347 5059237 ' 157,870 1579870 = 271 ,662 ' 1579870 4299532 - ' - (291409000) - (4,404,298) - 3 ,020 63 ,072 525 ' ( 146,222) ( 1198439968) (4, 162) ( 1 ,062) - 13 ,607,813 - ' - 30,000 - ( 143 ,202) (4,688,443 ) (3 ,637) 819809 293829917 131 ,938 ' - 539,576 - 81 ,809 299229493 1319938 ' 677,873 1392919929 633 ,538 3 ,695 ,475 7796289059 7,2849916 ' $ 4,3739348 $ 9099735988 $ 79918,454 $ 4, 162,908 $ 4596089068 $ 7,9189454 210,440 45,3659920 $ 49373 ,348 $ 9099739988 $ 71918,454 Continued ' 215 Indian River County, Florida Board of County Commissioners Statement of Cash Flows Proprietary Funds For the Year Ended September 30 , 2003 Business-type Activities Enterprise Funds Solid Waste Disposal Golf County District Course Utilities RECONCILIATION OF NET OPERATING INCOME (LOSS) NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 108, 158 $ 650,611 $ 382,927 Adjustments to reconcile operating income to net cash provided by operating activities : Depreciation 5593197 135 ,297 103163 ,364 Capitalized self-incurred expenses - - (311 ,469) (Increase) Decrease in assets : t Accounts receivable (20,529) 563 (203 ,321 ) Due from other governments (4,358) Inventories - ( 1 ,079) 3 ,652 Impact fees receivable - - 630,061 Deposits Increase (Decrease) in liabilities : Accounts payable ( 192,626) (76,819) 49,017 Claims payable Due to other governments - ( 1 ,836) Other deposits in escrow Retainage payable (52, 110) Customer deposits 49500 - 226, 131 Closure and maintenance costs payable 4369194 Deferred revenues - 2,723 - Accrued compensated absences 4,392 189003 36,308 Total adjustments 734,660 76,852 10,593 ,743 Net cash provided by operating activities $ 29342,818 $ 727,463 $ 10,9769670 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Change in fair value of investments $ (42 358) (385 ) $ ( 12% 876) Contributed property,Y� Plant and equipment $ $ $ 4,065129 The accompanying notes are an integral part of the financial statements. 216 Governmental ' Other Activities Enterprise Internal Funds Total Service Funds ' $ 398,666 $ 3 ,040,362 $ 4069996 ' 57 655 10 915 513 10,956 ' - (3119469) - (223 ,287) (250,626) 125 (45233 ) 63 ,287 29422 49995 4,846 630,061 ' - - 402 259473 ( 194,955) (48,685) 320,000 ' 266 ( 19570) 1039000 103 ,000 - (52, 110) - ' _ 2309631 - 436, 194 - 2,723 ' (6,211 ) 529492 ( 1 ,939) 182,730 1195879985 98,241 $ 5819396 $ 149628,347 $ 505,237 ' $ ( 19999) $ ( 174,618) $ ( 129850) $ - $ 4,0659129 $ - ' 217 Indian River County, Florida Board of County Commissioners Statement of Fiduciary Net Assets Agency Fund September 30, 2003 ASSETS Cash and cash equivalents $ 2 , 3209768 Accounts receivable 219 Total assets $ 2 , 320, 987 LIABILITIES Accounts payable $ 203 , 378 , Other deposits held in escrow 29117 ,609 Total liabilities $ 293205987 The accompanying notes are an integral part of the financial statements . 218 ' Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 1 = SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Board of County Commissioners (the "Board") is a County agency and a local governmental entity pursu- ant to Article VIII, Section 1 (e) of the Constitution of the State of Florida . For financial statement and report- ing 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 format of the Board 's statements have 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. Reporting Entity ' The concept underlying the definition of the reporting entity is that elected officials are accountable to their constituents for their actions . The reporting entity ' s financial statements should allow users to distinguish ' between the primary government (the Board) and its component units . However, some component units, be- cause 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 may be 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 organi- , zations , 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. ' 219 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 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 the EMS . Although legally separate , the EMS is appropriately blended as a governmental fund type (special revenue) component unit into 71 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 NetAssets 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 Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available . Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Board considers revenues to be available if they are collected within 40 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. 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. 220 ' Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Fund Financial Statements - Continued ' Non-current portions of long-term receivables (special assessments) due to overnmental funds are reported on their g balance sheets in spite of their spending measurement focus . ' Non-currentortions of other long-term receivables p g are offset by fund balance reserve accounts . ' Because of their spending measurement focus , expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities . Since they do not affect net current assets , such long-term ' amounts are not recognized as governmental fund type expenditures or fund liabilities . Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, ' rather than as fund assets . The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgements , are recorded only when payment is due . ' Pronrietary 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 on or before 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 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 . ' 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 . 221 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B . Fund Financial Statements - Continued 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. Road Improvement Fees Fund - The Road Improvement Fees Fund accounts for the receipt of traffic impact fees . Funds are used for the upgrading and construction of roads and bridges . Secondary Roads Construction Fund - The Secondary Roads Construction Fund accounts for the expenditures of road and bridge construction. Financing is provided by collections ofthe 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 all of the County. Financing is provided by ad valorem taxes . Land Acquisition Fund - The Land Acquisition Fund acounts for the expenditures incurred in the purchase of environmentally sensitive land. Financing is provided by bond proceeds from the voted debt "Environmentally Sensitive Land Acquisition Bonds". 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. Proprietary Maj or Funds Solid Waste Disposal District - The Solid Waste Disposal District Fund accounts for the revenues, expenses, assets and liabilities associated with the County landfill. Golf Course Fund - The Golf Course Fund accounts for the revenues, expenses, assets and liabilities associated with the 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 . 222 rIndian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES - Continued B . Fund Financial Statements = Continued Other Fund Types ' Internal Service Funds - Internal Service Funds account for Fleet Management and Self Insurance 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 other governments and individuals . C. Cash and Cash Equivalents ' The Board 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 Board 's funds and are therefore reported as investments on these statements . D. Investments Investments consist of U. S . Treasury Securities , U. S . Government Agency Securities , a guaranteed invest- ment 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. E . Allowance for Doubtful Accounts The Board provides an allowance for water and sewer accounts receivable that may become uncollectable . At Sep- tember 30, 2003 , this allowance was $274,988 . No other allowances for doubtful accounts are maintained since other accounts receivable are considered collectible as reported at September 30, 2003 . F. Inventories ' Inventories are valued at cost, which approximates market, using the "first-in, first-out" method of accounting. Inven- tories of governmental funds are recorded as expenditures when consumed rather than when purchased. G. Capital Assets ' Capital assets, which include property, plant, equipment, and infrastructure assets (e .g. , roads, bridges, right of ways, water and sewer distribution systems and similar items), are defined by the County 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 ' 223 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G. Capital Assets - continued of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful lives 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 enterprise fund activities is included as part of the capitalized value of the assets constructed . The Board holds legal title for the capital assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor ofElections and Tax Collector, and is accountable for them under Florida Law. Capital assets used by the Board's governmental funds are reported in the financial statements of the County. Capital assets of the Board 's enterprise and internal service funds are reported in the Proprietary Funds financial statements . Property, plant, and equipment of the Board's enterprise and internal service funds, as well as the Solid Waste Disposal District, are depreciated using the straight line method over the following estimated useful lives : Assets Years Buildings and improvements 25 - 50 Machinery and equipment 3 - 10 Utility distribution systems 25 - 50 H. 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. 1. Unamortized Bond Costs s 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. J. Unamortized Bond Discounts Bond discounts associated with the issuance of Proprietary Fund revenue bonds are amortized according to the interest method, which results in a constant rate of interest being applied to the amount outstanding at any given time. For financial reporting, unamortized bond discounts are netted against the applicable long-term debt. 224 ' Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 ' Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K. Intangible Assets ' Land use rights were purchased b the County Utilities Fund from the g p y ty Golf Course Fund for irrigating the golf ' course with treated effluent. 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 . L . Deposits ' Deposits in the governmental funds represent 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. ' M . Deferred Revenues ' Deferred revenues reported in applicable Governmental Fund Types represent unearned revenues or revenues which are measurable but not available and, in accordance with the modified accrual basis of accounting, are reported as deferred revenues . The deferred revenues will be recognized as revenue in the fiscal year they are ' earned or become available . N . Accrued Compensated Absences The Board records compensated absences in the Governmental Fund Types as an expenditure for the amount accrued during the year that would normally be liquidated with expendable available financial resources . The liability is reported ' in the financial statements of the County. Proprietary Fund Types accrue compensated absences in the period they are earned. O . 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 Govern- ment 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, 2003 . ' P. Landfill Closure Costs Under the terms of current state and federal regulations , the Solid Waste Disposal District (S WDD) 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 S WDD recognizes these costs of closure and post-closure maintenace 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. ' 225 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 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 Manage - ment 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 . (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 governmental and propri. etary fund types . The budgets legally adopted by the Board set forth the anticipated revenues by source and the appropriations by function. Subsequent to enaction of the ordinances adopting budgets for all govern- mental and proprietary fund types, two new governmental funds were created, the Disabled Access Program and Traffic Education Program special revenue funds . Budgets were not adopted by the Board for these new funds. (6) Formal budgetary integration on an object level is used as a management control device for the governmental and proprietary funds of the Board. Management is authorized to transfer budgeted amounts between objects and departments in any fund as long as management does not exceed the total appropriations of a fund. Board approval to amend the budget is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations of a fund. (7) Budgets for the governmental and propriety 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. 226 ' Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Q. Budgets and Budgetary Accounting - Continued ' (9) The following is a comparison of the appropriations to total expenses for the proprietary funds for the fiscal year ended September 30, 2003 : Variance Total Positive Appropriations Expenses (Negative) ' Primary Government Enterprise Funds : ' Solid Waste Disposal District $ 99946 , 789 $ 81589, 141 $ 19357 , 648 Shooting Range 341 ,270 3279645 13 ,625 Golf Course 3 , 1979100 2 , 8429907 3549193 County Building 158425933 1 , 706, 109 1369824 CountyUtilities 2856445156 25 ,0159125 3 ,6299031 ' Internal Service Funds : Fleet Management 1 ,6119068 15501 ,621 1095447 SelfInsurance 135119 ,364 11 ,023 , 112 2 ,096,252 ' 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, 2003 , the carrying amount of the Board's deposits, including $8 ,000,000 of non-negotiable CDs, jwas $ 14,773 ,002, and the bank balance was $ 16,020,432 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursu- ant to the Public Depository SecurityAct of the State of Florida. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails . ' B . Accrued Interest Interest earnings on U . S . Treasury Notes and government agency bonds are recorded in the cash and investment pool and then allocated to each fund based on each fund's average monthly balance. Interest received within 40 days after September 30, in the amount of $299,918 , was allocated to the funds based on their average monthly balance for September. ' 227 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 C. Investments Florida Statutes, the Board 's Investment Policy, and various bond covenants authorize investments in certificates of deposit, money market accounts , savings accounts , repurchase agreements , the Local Government Surplus Funds Trust Fund administered by the Florida State Board ofAdmimstration, Florida Local Government Investment Trust Fund, direct obligations ofthe U. S . Government, or its agencies and instrumentalities and money market funds invest- ing in direct obligations of the U. S . Government. The Board invested in only these types of instruments during the fiscal year. In accordance with generally accepted accounting principles , the Board ' s investments are categorized in the following schedule to give an indication of the level of custodial credit risk assumed at year-end. Category 1 includes investments that are insured or registered, or for which the securities are held by the Board or its agent in the Board ' s name . U. S Treasury Securities and U . S . Government Agencies are held in safekeeping by the Board ' s agent in the Board ' s name . Investments in the Local Government Surplus Funds Trust Fund, the Florida Local Government Investment Trust Fund, money market accounts and guaranteed investment con- r tract are not categorized since the investments are not evidenced by securities that exist in physical or book r entry form . The Local Government Surplus Funds Trust Fund Investment Pool (Pool) is a "2a-7" like pool, and therefore , the County ' s account balance is used for fair value reporting . All units of local government in Florida are eligible , but not required, to participate in the Pool . In addition to a variety of fixed coupon investments , the Pool also purchases floating rate and adjustable rate securities . These floating rate and adjustable rate securi- ties are used to hedge against interest rate risk and provide diversification to the portfolio . The floating rate and adjustable rate securities all float relative to prevailing short-term interest rates such as LIBOR, Prime , or Fed Funds rates . On September 30, 2003 , the Pool held floating rate securities , either directly or as invested securities lending collateral, at a fair value of$2,236,973 ,000. The Pool also participates insecurities lending programs . As of September 30, 2003 , the collateral held by the Pool, $5 ,207,037,936 in cash and $4,095 ,228 in U . S . Government securities, exceeded the fair value of the securities underlying the agreements. As of September 30, 2003 , the Pool had 794 local government participants with total investments of approximately $ 16 . 05 billion. The portfolio 's average maturity was 76 days . The Florida Local Government Investment Trust Fund (Trust) is aprofessionally managed fund available onlyto public entities in Florida. The investment policy of the Trust restricts investments to direct obligations of or securities fully guaranteed by the United States; obligations of certain federal agencies, including collateralized mortgage obligations ; repurchase agreements ; corporate bonds ; and commercial paper. As of September 30, 2003 , the Trust had invest- ments, at fair value, of approximately $543 .2 million. Ofthe total investments in the Trust, 9. 86% was invested in asset backed securities and 9.08% was invested in adjustable rate mortgages . Except for the Local Government Surplus Funds Trust Fund Investment Pool (Pool) and the Florida Local Govern- ment Investment Trust Fund (Trust), investments are reported at fair value based on the average price obtained from three broker/dealers . Fair value of the Pool and the Trust are based on the fair value per share of the underlying portfolio. 228 ' Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' 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 q g 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 . All of the Board's U. S . Treasury Securities and U . S . Government Agencies are held in trust by the Board's custodial bank in the Board's name . ' Schedule of Investments at September 30, 2003 Fair Value U . S Treasury Securities $ 199148226 U . S . Government Agencies 1159805 ,686 ' 13499533912 Local Government Surplus Funds Trust Fund 65 , 1349998 ' Florida Local Government Investment Trust Fund 95000,000 Guaranteed Investment Contract 3 , 139285 ' Total Investments $ 2122289195 Note 3 - Property Tax Revenues Taxable values for all property are established as of January 1 , which is the date of lien, for the fiscal year starting October 1 . Property tax revenues recognized for the 2002-2003 fiscal year were levied in October, 2002 . All taxes ' are due and payable on November I 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 ofApril 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. ' 229 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 NOTE 4 - CAPITAL ASSETS A. Governmental Fund Type Capital Assets A summary of changes in the governmental fund type capital assets is as follows : Buildings Total and Construction Capel Balance at Land Irrproverrents Equipment In Progress Infrastructure Assets October 1, 2002 $ 52,0942481 $ 5396863666 $ 28,952,369 $ 1027, 178 $ 3296,055 $ 154,0569749 Additions 17,7439974 102847430 2,257,412 20,756,343 2792012 51 ,3211171 Deletions - - ( 12439039) (11 ,364,798) - ( 12,6071837) Balance at September 30, 2003 $ 69 $ 63971 ,096 $ meeee29,966,742 $ 259418,723 $ 3,575,067 $ 192,7709083 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. 't Be Proprietary Fund Type Capital Assets A summaryof changes in the proprietary fund g p p Lary type capital assets is as follows : Buildings Total and Construction Capital Land Improvements Equipment In Progress Assets Balance at October 1 , 2002 $ 15, 8892360 $ 224,3492474 $ 12,490,497 $ 1593669148 $ 26890959479 Additions 5199581 8,630,563 1 ,439, 158 107193,619 209782,921 Deletions - - (510,287) (47528,708) (550389995) 16,4082941 23299809037 139419,368 21 ,0319059 283,8392405 Less Accumulated depreciation - (839746, 840) (995489281 ) - (9392959121 ) Balance at September 30, 2003 $ 16408,941 $ 149,233, 197 $ 3,8719087 $ 21 ,031 ,059 $ 19075449284 230 Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' 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 investments are as follows : Solid Waste Other Disposal Golf County Fnterprise District Course Utilities Funds Total Sinking Funds $ - $ 583,790 $ 41470,310 $ $ 5,0549100 ' Renewal and - Replacement 393479112 3,060,594 69407,706 Customer Deposits 649700 - 230479458 210,440 29322,598 ' Capital Construction - - 24,370, 154 24,370, 154 Closure and Mainte- nance Costs 7,2111362 - - - 7,211 ,362 ' Total $ 10 $ 583,790 $ 33,948,516 $ 210,440 $ 4593659920 NOTE 6 - PAYABLE FROM RESTRICTED ASSETS ' Liabilities payable from the Board' s Enterprise Funds restricted assets listed above are as follows : ' Solid Waste Other Disposal Golf County Enterprise District Course Utilities Funds Total Accounts payable $ - $ - $ 887,555 $ - $ 8879555 ' Retainage payable - 168,388 - 1687388 Accrued interest payable - 28,398 3289002 - 3569400 ' Bonds payable - - (current portion) 395,000 198559000 29250,000 Closure & maintenance ' costs payable 792119362 - - 79211 ,362 Customer deposits 649700 290779421 2109440 2,3529561 ' Total $ 79276,062 $ 4239398 $ 59316,366 $ 2109440 $ 13 ,2269266 ' 231 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 NOTE 7 - INTERFUND BALANCES Interfund balances at September 30, 2003 , consisted of the following: Due to General Fund from : Nonmajor governmental funds : Federal/State Grants $ 5 ,000 Community Development Block Grant 13 ,000 Total $ 18 ,000 Due to Secondary Roads Construction Fund from : Metropolitan Planning Organization Fund $ 160 000 Homeless Assistance Center 135 ,000 Total $ 295 ,000 Amounts due from the above funds represent short term cash loans that will be repaid within the next twelve months . NOTE 8 - INTERFUND TRANSFERS Interf ind transfers for the year ended September 30, 2003 , consisted of the following : Transfers to Transportation Fund from : General Fund $ 7,413 ,988 Transfers to Nonmajor Funds from : General Fund 200,370 Optional Sales Tax Fund 800 000 Total transfers $ 8 ,414,358 Transfers are used to 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 optional sales tax revenues for beach restoration activities which must be accounted for in another fund, and 4) use unrestricted general fund revenues to subsidize a business activity, the Shooting Range. 232 ' Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 9 - RECEIVABLE AND PAYABLE BALANCES Receivables ' Receivables at September 30, 2003 , were as follows : Due from ' Accounts Other Governments Total Governmental Activities : Gane $ 4529824 $ 49971 ,723 $ 5,424,547 ' Road Improvement 0 215250 21 ,250 Secondary Roads Construction 0 539,012 539,012 Transportation 42843 210, 191 2159034 Emergency Services 17,014 202, 882 219, 896 ' Optional Sales Tax 0 117215911 11721 ,911 Other governmental 715317 484,593 555,910 Total Governmental Activities 545,998 8, 1512562 8,6972560 Business-type activities : Solid Waste $ 233,770 $ 782509 $ 312,279 Golf Course 574 9,000 91574 Utilities 22060,026 0 2,060,026 Other proprietary 309, 160 0 3099160 Total Business -type activities $ 2,6037530 $ 87,509 $ 216919039 Payables ' Payables at September 30 , 2003 , were as follows : Salaries and Total Governmental Activities : Vendors Benefits Retainage Payables General $ 892,342 $ 135, 512 $ 4,474 $ 13032,328 Road Improvement 4052149 0 482294 4535443 Secondary Roads Construction 544,902 2,383 4522172 999,457 Transportation 299,629 799653 2,325 3817607 Emergency Services 124,990 163,492 0 288,482 ' Optional Sales Tax 1 ,7381646 1 ,019 502,657 2,2429322 Land Acquisition 1 ,807 0 0 1 ,807 Other governmental 9525023 0 779583 11029,606 ' Total Governmental Activities $ 4,959,488 $ 382,059 $ 1 ,0875505 $ 6,429,052 � a Business-Type Activities (payable from current assests): ' Solid Waste $ 486,580 $ 272193 $ 0 $ 513,773 Golf Course 67, 110 7,987 0 759097 Utilites 445,969 722584 0 518,553 ' Other 2979522 0 0 297,522 Business-Type Activities (payable from restricted assests): Utilites 887,555 0 1 %388 19055,943 ' Total-Business Type Activites $ 2, 184,736 $ 1075764 $ 1689388 $ 2,460,888 ' 233 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 10 - LONG-TERM LIABILITIES A. Enterprise Fund Bonds Payable P y Recreational (Golf Course) Revenue Refunding Bonds Series 1993 Purpose - The Series 1993 bonds were issued to legally defease all of the Board ' s outstanding Recreational Revenue Bonds , Series 1985 and Series 1991 . Pledge of Revenues - The revenue bonds are collateralized by a lien on the net revenues derived from the operations of the project and racetrack and jai alai fronton funds accruing annually to the Board . Bonds Issued - At September 30, 2002, the revenue bonds consisted of the following : t Interest Outstanding at Rates and Original September 30 , Descrition P Date Maturit Issue 2003 1993 Recreational Revenue 2 . 80-5 . 25 % 9/ 1 / 16 $ 9 , 8755000 $ 6 ,735, 000 Refunding Bonds 3/ 1 and 9/ 1 Less : Current portion 395 ,000 Unamortized bond discount 1915641 Long-Term Portion $ 65148 , 359 Mandatory Redemption - The Series 1993 term bonds due September 1 , 2016, are subject to mandatory re- demption by . lot, prior to maturity, at par plus accrued interest to date of redemption, based on the following I schedule : Date _Principal Amount g September 1 , 2009 $ 500, 000 September 1 , 2010 530, 000 September 1 , 2011 555 , 000 September 1 , 2012 5805000 IF September 1 , 2013 610,000 September 1 , 2014 6455000 September 1 , 2015 675 , 000 September 1 , 2016 470, 000 $' Optional Redemption - The revenue bonds , maturing on or after September 1 , 2004, (except the Series 1993 term bonds maturing on September 1 , 2016) are subject to redemption prior to maturity, at the option of the County on and after September 1 , 2003 , 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 . 234 ' Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued ' 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 Rev- enue 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, 2003 the revenue bonds consisted of the following: Interest Outstanding at ' Rates and Original September 30, Description Date MLtun�V Issue 2003 Water and Sewer 2 . 60- 6 . 50% ' Revenue Bonds, 3 / 1 and 9/ 1 2024 $ 45 ,4755000 $ 3855705000 Series 1993A ' Less : Current portion 150559000 Unamortized bond discount 1 ,229,234 Long-Term Portion $ 36 ,285 , 766 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 , 2007 $ 152305000 September 1 , 2008 1 ,310, 000 Term Bonds due September 1 , 2011 ' Date Principal Amount September 1 , 2009 $ 1 ,3955000 September 1 , 2010 1 ,4755000 September 1 , 2011 15555 , 000 ' 235 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 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 , 2015 Date Principal Amount September 1 , 2012 $ 1 640 000 September 1 , 2013 11730,000 September 1 , 2014 1 825 000 September 1 , 2015 1 925 000 Term Bonds due September 1 , 2018 Date _Principal Amount September 1 , 2016 $ 25 030 000 September 1 , 2017 2135000 September 1 , 2018 2 250 000 F Term Bonds due September 1 , 2020 Date Principal Amount September 1 , 2019 $ 2 370 000 September 1 , 2020 2 490 000 Term Bonds due September 1 , 2024 Date Principal Amount September 1 , 2021 $ 2 625 000 September 1 , 2022 257605000 September 1 , 2023 2 905 000 September 1 , 2024 15585 ,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 . Water and Sewer Revenue Bonds Series 1996 Purpose - The Series 1996 bonds were issued to provide funds to make certain capital improvements to the utility system, and to reimburse the County for the purchase of a utility system from the City of Sebastian, Florida. 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 . 236 Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - Continued Water and Sewer Revenue Bonds Series 1996 - Continued ' Bonds Issued - At September 30, 2003 , the revenue bonds consisted ofthe following : ' Interest Outstanding at Rates and Original September 30, Description Date Maturi Issue 2003 ' Water and Sewer 3 . 80- 5 . 45 % Revenue Bonds, 3/ 1 and 9/ 1 2026 $ 38 , 900 , 000 $ 34, 1905000 Series 1996 ' Less: Current portion 8005000 Unamortized bond discount 9039039 Long-Tenn Portion $ 32 ,4869961 Mandatory Redemption - The Series 1996 term bonds are subject to mandatory redemption prior to maturity, ' in part (including portions of bonds) at par plus accrued interest, according to the following schedule : ' Term Bonds due September 1 , 2016 Date PnncinalAmount September 1 , 2011 $ 191259000 ' September 1 , 2012 1 , 1859000 September 1 , 2013 1 ,255 , 000 September 1 , 2014 1 , 320, 000 ' September 1 , 2015 193953000 September 1 , 2016 15470, 000 Term Bonds due September 1 , 2019 ' Date Principal Amount September 1 , 2017 $ 195505000 September 1 , 2018 19635 ,000 ' September 1 , 2019 1 , 725 , 000 Term Bonds due September 1 , 2026 ' Date Principal Amount September 1 , 2020 $ 198205000 September 1 , 2021 199205000 September 1 , 2022 2 ,025 , 000 September 1 , 2023 2 , 140, 000 September 1 , 2024 252559000 September 1 , 2025 2, 3805000 September 1 , 2026 295105000 237 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 10 - LONG-TERM LIABILITIES - Continued A. Enterprise Fund Bonds Payable - y Continued Annual Debt Service Pavments - Enterprise Fund Bonds Payable The annual debt service payments for bonds outstanding at September 30, 2003 , are as follows : Fiscal Year Recreational Revenue Water and Sewer Refunding Water and Sewer Revenue Ending Refunding Bonds , Series 1993 Revenue Bonds , Series 1993 Bonds , Series 1996 September 30, Principal Interest Principal Interest Principal Interest 2004 $ 3959000 $ 340, 775 $ 11055 ,000 $ 210839985 $ 800,000 $ 15852,034 2005 410,000 3219420 1 , 110,000 2,0309180 835,000 1 ,8139634 2006 4309000 300,920 1 , 170,000 199723460 8752000 1 ,7723719 2007 455 ,000 2789990 11230,000 19910,450 920,000 1 ,7281969 2008 480,000 255,785 193109000 1 ,830, 500 965,000 1 ,682,969 2009-2013 2 ,775 ,000 881 , 150 717955000 7, 9151225 5,650,000 7,596,962 2014-2018 19790,000 1709250 10, 165,000 51538,762 7,3701000 528729350 2019-2023 - - 1371509000 2,5577536 9,6301000 3,610,750 2024-2026 - - 1 ,5859000 83 ,212 72145,000 799,975 Total $ 637359000 $ 215499290 $ 38, 570,000 25,922,310 $ 34, 1909000 $ 26, 730,362 Less : Current Portion 395,000 1 ,0552000 800,000 Unamortized bond discount 1919641 19229,234 903,039 Total $ 6, 148,359 $ 2,5491290 $ 36,2859766 $ 259922,310 $ 32,486,961 $ 26,7309362 238 ' Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 NOTE 10 - LONG-TERM LIABILITIES - Continued B . Changes in Governmetal Long-term Liabilities ' Balance Balance October 1 , September 30, ' 2002 Additions Deletions 2003 Accrued Compensated Absences : $ 27319,703 $ 5152619 $ $ 298359322 Capital Leases : 4719188 2779146 194,042 Bonds Payable: ' Spring Training Facility 1694509000 460,000 15,9909000 Revenue Bonds - 2001 Series General Obligation ' Revenue Bonds - 1995 Series 99290,000 992902000 General Obligation Bonds - 2001 Series 1095209000 595,000 999259000 General Obligation Refunding Bonds - 2003 Series 7 800 000 71800,000 Total Bonds Payable 36,2605000 71800,000 1093459000 3397159000 ' Total $ 39,050,891 $ 893159619 $ 10,622, 146 $ 36,7449364 MWMW�' Of the $2, 835 ,322 liability for accrued compensated absences, management estimates that $200,000 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. C. Governmental Long- Term Debt rGeneral . Obligation Bonds ' Purpose - On November 29, 200 1 , 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 and the Series 2001 bonds are the second. The proceeds of this issue will provide funds to acquire by purchase , interest in environmentally sensitive 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. On July 1 , 2003 , the Board issued $7,800,000 of general Obligation Refunding Bonds, Series 2003 . The bonds were issued to provide funds, which together with other funds of the County, were used to refund and redeem on the date of closing of the Bonds , 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 cost of issuance ' ofthe Bonds, including to 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. t239 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued General Obligation Bonds - Continued Bonds Issued - At September 30, 2003 , General Obligation Bonds consisted of the following : Outstanding at Interest Original September 30, Description Rates and Date Mature Issue 2003 General Obligation 2 . 50%-4 . 30% 2001 Series 1 / 1 and 7/ 1 2016 $ 11 ,000,000 $ 919259000 General Obligation 1 . 50%-3 . 00% Refunding 2003 Series 1 / 1 and 7/ 1 2010 $ 7, 800 , 000 $ 72800,000 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 Board 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 2% depending on the year of redemption . The General Obligation Refunding Bonds , Series 2003 , are not subject to redemption prior to their maturities. Snrina Traning 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 . 240 ' Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 10 - LONG-TERM LIABILITIES = Continued C. Governmental Long-Term Debt = Continued S rTraning Facifily Re venue Bonds - Continued The foregoing are collectively referred to herein as the "pledged revenues". 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, 2003 , Spring Training Facility Revenue Bonds consisted of the following : g ' Outstanding at Interest Original September 30, Description Rates and Date Maturity Issue 2003 Spring Training 3 . 30%-5 . 25 % ' Facility 4/ 1 and 10/ 1 2031 $ 16 , 810, 000 $ 15 , 990, 000 Optional Redemption - The Series 2001 bonds maturing on or afterApril 1 , 2012, are subject to redemption at the ' option of the County in whole or in part, onApril 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 $ 6859000 April 1 , 2015 725 ,000 Term Bonds due April 1 , 2017 Date Principal Amount April 1 , 2016 $ 7605000 April 1 , 2017 795 ,000 ' Term Bonds due April 15 2021 Date Principal Amount April 1 , 2018 $ 8409000 ' April 1 , 2019 8905000 April 1 , 2020 9305000 April 1 , 2021 980,000 ' 241 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Lon - g Term Debt - Continued Spring Traning Facility Revenue Bonds - Continued Term Bonds due April 1 , 2027 - Date PrincipalAmount April 1 , 2022 $ 305 , 000 April 1 , 2023 3203000 April 1 , 2024 340, 000 April 13 2025 355 ,000 April 1 , 2026 375 , 000 April 1 , 2027 390,000 Term Bonds due April 1 , 2031 Date Principal Amount April 1 , 2028 $ 410, 000 April 1 , 2029 4303000 April 1 , 2030 455 , 000 April 1 , 2031 4355000 Annual Debt Service Payments - Governmental Long Term Debt The annual debt service payments for bonds outstanding at September 30, 2003 , are as follows : Fiscal Year General Obligation Refunding General Obligation Bonds Spring Training Facility Bonds Ending Bonds 2003 Series 2001 Series 2001 Series September 30 Principal Interest Principal Interest Principal Interest 2004 $ 15035 , 000 $ 186, 438 $ 6109000 $ 369, 118 $ 4752000 $ 754, 028 2005 1 , 065, 000 1659737 6303000 3503817 490, 000 737,402 2006 1 , 0809000 146,238 6509000 3315918 5052000 7215233 2007 1 , 105, 000 1249637 6709000 3129417 520, 000 704, 062 2008 1 , 135 , 000 99, 775 6909000 2909643 545 , 000 685, 343 2009-2013 21380, 000 107, 700 3 , 900, 000 190553218 3 , 0351000 31085,453 2014-2018 - - 22775 , 000 240,280 39805 , 000 2, 307, 988 2019-2023 _ 2024-2028 3 , 425 , 000 11237,225 _ 2029-2031 19870, 000 619, 250 _ 1 , 320, 000 1327250 Total $ 71800, 000 $ 830, 525 $ 9, 9259000 $ 2, 9502411 $ 1539909000 $ 1029849234 242 tIndian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 10 - LONG-TERM LIABILITIES - Continued C. Governmental Long-Term Debt - Continued The General Obligation Bonds and Spring g p g Training Facility 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 r statements ofthe County. ' D . 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. Outstanding Retired Outstanding ' at During at September 30, Fiscal Year September 30, ' Capital Improvement Revenue 2002 2003 2003 Bonds : Series 1980 $ 215209000 $ 1905000 $ 2 ,330, 000 ' Refunding Revenue Bonds : Series 1992 $ 2 ,215 , 000 $ 695 000 $ 1 , 520, 000 ' E. Capital Leases and Notes Payable Governmental Capital Leases The Board has entered into several lease-purchase agreements to purchase various types of equipment and furniture with lease terms varying from 24-60 months . ' 243 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 10 - LONG-TERM LIABILITIES - Continued E. Capital Leases p and Notes Payable - Continued The following is a schedule of future minimum lease payments under capital leases , together with the present value ofthe net minimum lease payments, as of September 30, 2003 : Year Ending September 30 , 2004 Amount Total Minimum Lease Payment $ 203 535 Less : Amounts representing interest 9 ,493 Present Value ofNet Minimum Lease Payments $ 194 042 The following is an analysis of the leased property under capital leases : s. Type of Property Capitalized Cost Firetrucks $ 1 , 3109055 The equipment listed above is reported in the financial statements of the County. Annual payments for the firetruck leases are made by the Emergency Services District Fund, F. 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 a nursing home, an expanded processing facility, a manufacturing facility, and an educational facility, for a total of four 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. 244 rIndian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 10 - LONG-TERM LIABILITIES - Continued F. Conduit Debt Obligations - Continued Original Principal Bond Issue Outstanding Year Bonds and Project Description $ 185000,000 $ 17,600,000 1999 St. Edward 's School, Inc . — Upper School educational facilities 69025,000 4,4403763 1997 Hetra Computer & Communications Industries , Inc . (XL Vision, Inc . ) 62, 000 sq . ft. manufacturing facility 4,800,000 156009000 1986 Florida Convalescent Centers , Inc . — 91 -bed skilled and intermediate care nursing home 4,0803000 2,4009000 1997 Ocean Spray Cranberries, Inc . — expansion of 23 , 000 sq . ft. processing facility Total $ 2650405763 NOTE 11 = PROVISION FOR CLOSURE COSTS Current regulations of the U. S . Environmental Protection Agency (EPA) and the Florida Department of Envi- ronmental 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 recognizes the expenses associated with the final closure and post-closure maintenance of the landfill areas over the active life of those areas . These costs are recognized in each operating period based on the amount of capacity used ' during that period, regardless of when cash disbursements are made for these costs . The SWDD annually obtains updated and revised estimates of total future closure and post-closure costs from its consulting engineers . The provision for closure costs reported in the financial statements as operating ex- pense 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 (Seg- ment II, C & D) are approximately $3 .23 million. These costs will be recognized in future periods as the remaining capacity is filled. This landfill area is expected to close in three phases . The first phase was closed in 1998 , the second phase is scheduled in the year 2006 , and the third phase in the year 2008 . To date; 68% of the landfill capacity has been filled. ' 245 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 11 - PROVISION FOR CLOSURE COSTS - Continued orm and All amounts recognized are based on what it would current dollars . Actual costs may be different due to inflat one h geslinlosure technology,post-closure functions in regulations . The SWDD is required by FDEP to annually show proof of ability to iinance closure and po to closure costs , and has done so by fulfilling the requirements of the financial test provision of the regulation. At the same time, the SWDD is making annual deposits to a closure and post closure cost account to provide for the financing of future closure-related expenditures . The balance in the account for inactive and active landfill areas as of September 30, 2003 was $ 7,211 , 362 . NOTE 12 - DEFINED BENEFIT PENSION PLANS A. Florida Retirement System Plan Description : The Board ' s employees , except certain firefighters, 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. 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 . 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, 2003 , were equal to 10. 67% of the annual covered payroll. Contributions to the FRS for the fiscal years ended September 30, 20019 2002, and 2003 , were $3 ,424, 831 , $3 ,236, 178 and $39195 , 972 respectively, which are equal to 100% of the required contribution for each year. B . Firefighters Defined Benefit Pension Plan In October 1981 , the South Indian River County Fire District took over the operations of the City of Vero Beach, Florida 's Fire Department. Full-time firefighters were given the option of joining or remaining the Florida Retirement System (FRS) ining in the City's plan. Twenty full-time firefighters and all of the volunteers elected to remain in the City's plan. Those who j oined the FRS received refunds of their contributions from the City's plan. The Board of County Commis- sioners contributes to the City's plan, on behalf of eligible firefighters, which is a single-employer defined benefit pension plan. The City administers the plan, and by statute, retains fiduciary responsibility for this plan. The City accounts for the plan in a pension trust fund. The City's Comprehensive Annual Financial Report (CAFR) includes the required financial statements and required supplementary information for the plan. A copy of the City's CAFR may be obtained from the Finance Department of the City of Vero Beach, 1053 20th Place, Vero Beach, FL 32960 . 246 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 ' NOTE 12 - DEFINED BENEFIT PENSION PLANS = Continued Be Firefighters Defined Benefit Pension Plan - Continued ' Funding Policy and AnnualPension Cost: The City establishes and may amend the contribution requirements of plan members and the City in accordance with Florida Statutes . The Board 's annual pension cost for the most recent actuarial valuation report, as of 2003 , and related information for the plan is as follows : Contribution rates : Employee 7% of Compensation State Premium Tax Refund Employer None Required Annual Pension Cost $ 202 , 874 ' Contributions made $ 292 , 799 Actuarial valuation date October 1 , 2003 Actuarial cost method Aggregate ' Amortization method N/A Remaining amortization period 10 years Asset valuation method 5 year smoothed market ' Actuarial assumptions : Investment rate of return 8 % Projected salary increases 6% Inflation rate 4% Post retirement benefit increases N/A ' Cost of living increase 2% Funding Progress : Actuarial Actuarial - Accrued UAAL As % Actuarial Value of Liability (AAL) Unfunded Funded Covered of Covered Valuation Assets Frozen Entry Age AAL (URAL) Ratio Payroll Payroll ' Date (a) (b) (b-a) (a/b) (c) (b-a)/c 10/01 /01 $ 793125430 $ 798769933 $ 5645503 92 . 8% $ 869791 650 . 4% 10/01 /02 $ 6,993 , 181 $ 79982,786 $ 989,605 87 . 6% $ 635483155809% ' 10/01 /03 $ 69823 , 162 $ 89014,048 $ 191909886 85 . 1 % $ 62,357 1909 . 8% i ' 247 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 12 - DEFINED BENEFIT PENSION PLANS — Continued B. Firefighters Defined Benefit Pension Plan — Continued Annual Pension CostAnd Net Pension Obligation Fiscal Year Ending September 30 : 2003 2002 2001 A . Annual Required Contribution (ARC) * $ 164,943 $ 242, 148 $ 234,915 B . Interest on Net Pension Obligation (NPO) ( 169463 ) (23 , 103) (38 216 C . Adjustment to ARC 54,394 ) ( D . Annual Pension Cost (A+B-C) ) ( 110,535) (229, 101 ) I 202,874 329,380 4259800 E . Actual Contributions 292,799 2465373 236, 893 R NPO at beginning of year (205,783) (288,790) (477 697 a Increase (decrease) in NPO (D-E) (89,925) 83,007 188, 907 H . NPO at end of year (F+G) (2955708) (205, 783) (288 , 790) * Includes expected State contribution. Three-Year Trend Information : Percentage Annual Pension Cost of APC Net Pension Year E APC Contributed Obligation September 30, 2001 $425,800 56% $(288 , 790) September 30, 2002 $3299380 75 % $(2053783 ) September 30, 2003 $202874 144% $(2959708) NOTE 13 - OPERATING LEASES The Board has entered into noncancelable operating leases, both as lessor and lessee . Lease terms vary from 2 to 30 years . Lease revenues totaled $236,028 and lease expenditures totaled $ 145 , 869 for the year ended September 30, 2003 . The Board also leases other equipment and office facilities as both lessor and lessee on a month-to-month basis . 248 Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 Note 13 - Operating Leases - Continued A. Future Minimum Lease Receipts Year Amount 2004 $ 2129248 2005 1589176 2006 66 , 750 2007 45 ,200 2008 45 ,200 2009 - 2013 1549750 2014 - 2018 15000 2019 - 2023 800 Total future minimum lease receipts : $ 684 , 124 The property being leased is reported in the financial statements ofthe County and has a carrying value of $7,670, 895 . For fiscal year 2003 , total depreciation expense for depreciable property being leased is $431 ,264 . B . Future Minimum Lease Payments The following is a schedule, by years, of minimum future rentals to be paid by the Board for noncancelable operating leases as of September 30 : ' Year Amount ' 2004 $ 1189352 2005 111 ,265 2006 46 , 380 2007 20, 505 2008 20, 505 2009 - 2013 102 , 525 2014 - 2018 1029525 2019 - 2023 19500 ' Remaining 89100 Total future minimum lease payments : $ 5319-657 249 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30, 2003 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, 2003 , consist of the following: Debt Service Funds : Reserved for Debt Service : LandAcquisition Bonds $ 684, 016 Spring Training Facility Revenue Bonds 494,232 Total $ 191782248 z Capital Projects Funds : Reserved for Capital Projects : Optional Sales Tax $ 329228 , 832 Dodgertown Capital Reserve 2 , 052 , 302 Gifford Road Construction 3 ,435 , 895 Shooting Range 114 612 Dodgertown Facility 912,493 Homeless Assistance Center 63 , 589 Fellsmere Old School 265060 Total $ 38 , 833 , 783 Special Revenue Funds : Reserved for Advances to Other Funds : Secondary Roads Construction $ _ 655 . 000 NOTE 15 - FUND EQUITY DEFICIT The following funds had a deficit in fund balance at September 30, 2003 : Fund Deficit Metropolitan Planning Organization $ 249,202 Federal/State Grants 319703 Community Development Block Grant 15 , 800 Total Deficit 296, 705 The deficits for all three funds will be eliminated by grant proceeds in the fiscal year 2004. 250 Indian River County, Florida Board of County Commissioners ' Notes To Financial Statements Year Ended September 30 , 2003 NOTE 16 - RESTRICTED NETASSETS ' The Board has established certain restrictions within the net assets section of the proprietary funds . Restricted net assets at September 30, 2003 , consist of the following : Restricted for debt service : Golf Course Fund $ 32 , 917 ' County Utilities Fund 154 , 583 Total $ 1879500 Restricted for capital projects : County Utilities Fund $ 42 783 , 994 NOTE 17 - RISK MANAGEMENT A. General Liability, Property and Worker 's Compensation p ahon 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. During a previous fiscal year, the Board established a fund to account for risk management called the Self Insurance Fund (an internal service fund). The risk management program began on November 1 , 1988 , and has provided coverage for the Board as follows : 11 /1 /88 - 10/ 1 /89- 10/ 1 /92 - 10/1 /94- 10/ 1 /02- 10/1 /89 10/ 1 /92 10/ 1 /94 10/1 /02 Present Worker's Compensation $ 10000 $ 10000 $ 1505000 $ 150, 000 $ 350, 000 ' General Liability 100,000 5005000 2005000 200,000 2003000 Auto Liability 1005000 500, 000 100, 000 200, 000 2005000 Property Damage 10000 107000 500-255000 500- 2500 500- 253000 ' Errors or Omissions 259000 259000 2005000 200, 000 200, 000 Annual Aggregate 6007000 1 , 000, 000 150007000 1 , 000, 000 1 , 000, 000 The Board purchases commercial insurance for claims in excess of coverage provided by the fund and for all other risks of loss . The Board has not incurred any settlements in excess of the insurance coverage 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 re- quired 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 up to $ 125 ,000 per individual, per year, and has purchased a reinsurance policy to cover claims in excess of this amount. There were no claims in excess of this limit for the 2001 , 2002, and 2003 fiscal years . 251 Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 NOTE 17 - RISK MANAGEMENT - Continued A. General Liability, Property and Worker 's Compensation - Continued The claims liability of$4,581 ,000 reported at September 30, 2003 , 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. Changes in the fund's claims liability amount during the current and prior fiscal years are as follows : Current Year Balance at Claims Balance Fiscal Year and Changes Claim at Fiscal - Beginning in Estimates Payments Year End 1989- 1990 $ 4159250 $ 8669250 $ ( 167, 553 ) $ 15113 , 947 1990- 1991 1 , 1135947 496829363 (39467, 596) 213285714 1991 - 1992 2, 3281714 3 ,426,954 (3 ,4669903) 29288, 765 , 1992- 1993 2,288 , 765 4,474,994 (49255 , 815 ) 295079944 1993 - 1994 21507, 944 498259081 (41398 , 521 ) 2, 9349504 1994- 1995 21934, 504 4,2489626 (49830, 926) 2,352,204 1995- 1996 2, 3525204 5 ,2019050 (4,990, 111 ) 2, 5639143 1996- 1997 2, 5631143 5 ,226,091 (59461 , 151 ) 293289083 1997- 1998 29328,083 695419439 (599177522) 29952, 000 1998- 1999 21952, 000 695989493 (61517,493 ) 390339000 1999-2000 3 , 0339000 69401 ,416 (6,407,416) 33027, 000 2000- 2001 390279000 8, 3229143 (7, 660, 143) 316899000 2001 -2002 396899000 99850,070 (91278,070) 452619000 2002-2003 492619000 99440, 074 (9, 120,074) 4, 5819000 Included in the charges to other funds is an amount to fund future catastrophic losses not actuarially determined and at September 30 , 2003 , unreserved net assets of $2 , 852,491 have been designated for this purpose . The Board has elected to accrue the larger of the discounted liability or undiscounted liability. At September 30, 2003 , 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 . 252 ' Indian River County, Florida Board of County Commissioners Notes To Financial Statements Year Ended September 30 , 2003 ' NOTE 18 - COMMITMENTS AND CONTINGENCIES - Continued A. Litigation - Continued ' The Board is contingently liable with respect to lawsuits and other claims incidental to the ordinary ary course of its operations. In the opinion of management and based on the advice of legal counsel, the ultimate disposition of lawsuits will not have a material adverse effect on the financial position of the Board. ' B . Contracts and Other Commitments The Board has various contracts and commitments outstanding at September 30, 2003 . In the General Fund, contracts ' are for the Courtroom Video Equipment Maintenance, Engineering Services for HVAC replacement at the County Administration Building, Sheriff's Office, Health Department and Douglas School, and the Administration Building Phone System Upgrade and Maintenance . In the Special Revenue Funds , contracts are for the Beach Preservation Plan, Kings Highway Phase II Improvements and various road paving and drainage projects . In the Capital Projects Funds, contracts are for the Dodgertown Training Facility, New CountyAdmimstration Building, Public Works Com- plex, Financial Software Implementation and various stormwater projects . In the Enterprise Funds, contracts are for the South County Reverse Osmosis Plant Clearwell Addition, Wetland Mitigation Site Maintenance, Hazardous Waste Collection and various other water and sewer projects . A summary of these projects at September 30, 2003 , is as follows : Special Capital General Revenue Proiects Enterprise Total Total contract price $ 395 ,506 $ 16,2951740 $ 30,5429547 $ 1796969975 $ 649930,768 Total paid as of September 30, 2003 989376 1097309810 17,6629480 8 ,528 ,563 379020,229 Remaining obligations at September 30, 2003 $ 297, 130 $ 57564,930 $ 12,880,067 $ 9, 168 ,412 $ 27,9101539 C . Grants Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies . If any expenditures are disallowed as a result of these audits , the claims for reimbursement to the grantor agency would become a liability of the Board . In the opinion of management, any such adjustments would not be significant NOTE 19 - SUBSEQUENT EVENTS 1 On October 15 , 2003 , the Board issued $6,445 , 000 of Recreational Revenue Refunding Bonds, Series 2003 . The issuance of the Series 2003 Bonds is authorized by Ordinance No . 95 - 16 of the County, as amended, and other ' provisions of law, (collectively the "Act"), and Indian River County Resolution 2003 -075 , adopted by the Board on July 8 , 2003 , as amended and supplemented by resolution 2003 -080, adopted July 22 , 2003 , as amended and supplemented by Resolution 2003 -081 , adopted onAugust 5 , 2003 . The proceeds ofthe bonds, together with other funds of the County, will be used to refund and redeem all outstanding Recreational Revenue Refunding Bonds, Series 1993 , which are currently outstanding in the principal amount of $6,735 ,000 . 253 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting 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, as of and for the year ended September 30, 2003 , and issued our report thereon dated January 30, 2004 . 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 , Compliance As part of obtaining reasonable assurance about whether the Board of County Commissioner' s fund financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Board of County Commissioner ' s internal control over _ financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Board of County Commissioners, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited. }ltttitd�, COdtn1+ 8 QI)w , f�/!.I e14 �u6af1C Ql�Ilirt> ><s �h&n +!<�rd Vero Beach, Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 254 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants • Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Phone 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 , 2003 , and have issued our report thereon dated January 30 , 2004 . 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 Auditor ' s Report on Compliance and Internal Control over Financial Reporting , Independent Auditor ' s 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 January 30 , 2004, should be considered in conjunction with this management letter. Additionally , our audit was conducted in accordance . with Chapter 10 . 550 , Rules of the Auditor General . The Rules of the Auditor General ( Section 10 . 554( 1 )(g) l . a) 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 1 that have occurred, or are likely to have occurred ; (2) improper or illegal expenditures ; (3 ) improper or inadequate accounting procedures ; (4 ) failures to properly record financial transactions ; and ( 5 ) 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 . In addition , we are submitting for your consideration the following recommendations designed to help the Board 1 of County Commissioners improve the internal control structure and achieve operational efficiencies . We have also tested your operations for compliance with applicable laws and have provided additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida ' FINDINGS AND RECOMMENDATIONS TO IMPROVE THE ORGANIZATION ' S INTERNAL CONTROL AND OPERATING PROCEDURES DISPOSITION OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS : ' In accordance with the Rules of the Auditor General ( Section 10 . 554( 1 )(g) l . b) we have noted that all findings and recommendations made in the preceding annual financial , audit have been corrected . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 255 Harris , Cotherman, Jones , Price 6i Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County, Florida Management Comments Page Two CURRENT YEAR FINDINGS AND RECOMMENDATIONS : General : Information Technology and Internal Control With the new Munis Software application it appears that certain access and authorization levels areas established that should be reassessed to ensure only necessary levels of access are allowed especially for Super Users . x COMMENTS REQUIRED BY THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) Nothing came to our attention which indicated that the Board of County Commissioners is, or during the year ended September 30, 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) of the Florida Statutes , Florida Department of Banking and Finance Financial Report The annual financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 of the Florida Statutes has been completed . We compared this report with the financial audit report and noted no exceptions for the fiscal year ended September 30, 2003 . 256 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered The Honorable County Commissioners Indian River County , Florida Management Comments Page Three ' Compliance With Section 218 .415 ' As required by the Rules of the Auditor General ( Section 10 . 554 ( 1 )(g)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 . 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 . C� fubl� e QC�nvc�t s L'h" 41&d Vero Beach, Florida January 30 , 2004 ' 257 BOARD OF COUNTY COMMISSIONERS 1840 25th Street, Vero Beach, Florida 32960-3365 Office of Management & Budget G' Telephone: (772 ) 567-8000 March 9 , 2004 �ORIO�' Harris , Cotherman , Jones , Price & Associates 5070 North AIA , Suite 250 Vero Beach , FL 32963 Dear Harris , Cotherman , Jones , Price & Associates : Please find below our response to the management comments resulting from the audit of the general purpose financial statements of Indian River County for the fiscal year ended September 30 , 2003 . s Information Technology and Internal Control During the implementation of the new Munis software applications , it was necessary for some super users to have access and authorization levels beyond what is necessary for ongoing operation of the system . We are conducting a review and assessment of the authorization levels and access of all super users on the Munis software system . Based upon this review, Computer Services will remove any system permissions that are not necessary for the user's job function , or that may result in a weakness in the organization ' s system of internal controls . Prior to the addition of any access and authorization levels in the future , Computer Services and financial staff will review such access for its impact on internal controls . We wish to commend your firm on the thoroughness and professionalism displayed throughout the audit . Thank you for identifying this area of concern . Sincerely, Jaso E . rown Bud anager cc : Joseph A . Baird , Asst. County Administrator Edwin M . Fry, Finance Director Basil Dancy, Computer Network Support Specialist ' CLERK OF THE CIRCUIT COURT 1 1 i 1 i 1 1 1 ' 259 , Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 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, 2003 , 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 . 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 Clerk of the Circuit Court at September 30, 2003 , 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 Clerk of the Circuit Court as of September 30, 2003 , 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 January 30, 2004 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 grants . This report is intended solely for the information and use of management, the Clerk of the Circuit Court, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . ltsttd�, COV {tGtrYlM1, Ow , pa4I Vero Beach , Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Finn Member FICPA Private Companies Practice Section 260 rIndian River County, Florida Clerk of the Circuit Court ' Balance Sheet Governmental Funds September 30, 2003 r Public Records Total Modernization Governmental ASSETS General Fund Funds Cash and cash equivalents $ 839 ,032 $ 857 , 821 $ 1 ,696, 853 Accounts receivable 28 , 114 9 289123 Prepaid expenses 36 , 926 36 , 926 Due from other governments 39, 854 - 399854 Total assets $ 943 , 926 $ 857 , 830 $ 1 , 801 , 756 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 200, 676 $ 420 , 560 $ 621 ,236 Due to other governments 743 ,250 - 7439250 Total liabilities 943 , 926 420 , 560 1 , 364 ,486 Fund Equity : Fund balances : Unreserved = 4379270 437 ,270 Total fund equity 4379270 4379270 Total liabilities and fund equity $ 9435926 $ 857 , 830 $ 1 , 801 , 756 r r r r r r The accompanying notes are an integral part of the financial statements . 261 Indian River County, Florida Clerk of the Circuit Court Statement of Revenues , Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30 , 2003 Public Record Total Modernization Governmental General Fund Funds REVENUES Intergovernmental $ 266 , 928 $ - $ 266 ,928 Charges for services 2 ,610,319 181 ,263 2, 791 , 582 Interest 21 , 335 13 , 531 34 , 866 Total revenues 29898 ,582 194 , 794 3 ,093 , 376 EXPENDITURES General government 1 , 872, 184 603 , 664 23475 , 848 t Court related 2,9899470 - 25989,470 Total expenditures 4, 8615654 60304 5 ,465 , 318 Excess ofrevenues over (under) expenditures ( 199639072) (408 , 870) (2, 3719942) OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 2, 706 , 322 - 2 , 706 ,322 Transfers to Board of County Commissioners (743 ,250) - (7435250) Total other financing sources (uses) 1 ,963 ,072 - 11963 , 072 Net change in fund balances - (408 , 870) (408 , 870) Fund balances at beginning of year - 846 , 140 846, 140 Fund balances at end of year $ - $ 437 ,270 $ 4379270 The accompanying notes are an integral part of the financial statements . 262 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, 2003 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental $ 220 , 000 $ 2209000 $ 2665928 $ 465928 Charges for services 2 , 082,900 2 , 147, 510 23610 , 319 462 , 809 Interest 775100 779100 21 , 335 (55 , 765 ) Total revenues 25380 , 000 294449610 298989582 4539972 EXPENDITURES General government 250295591 25029 , 591 1 , 8729184 1575407 Court related 3 ,0565731 3 , 121 , 341 29989 ,470 131 , 871 Total expenditures 550869322 55150 , 932 4 , 8619654 2899278 Excess of revenues over (under) expenditures (2, 7065322) (297065322) ( 159639072) 743 ,250 ' OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 297069322 25706 , 322 2, 7065322 - Transfers to Board of County Commissioners - - (7435250) (743 ,250) Total other financing sources (uses) 257069322 2 , 706 , 322 19963 , 072 (743 ,250) ' Net change in fund balances Fund balances at beginning of year _ ' Fund balances at end of year $ _ rThe accompanying notes are an integral part of the financial statements . ' 263 Indian River County, Florida Clerk of the Circuit Court Statement of Fiduciary Net Assets Agency Fund September 30, 2003 ASSETS Cash and cash equivalents $ 2 , 116 ,246 Accounts receivable - net 5 , 556 Total assets $ 2, 121 , 802 LIABILITIES Due to other governments $ L0707583 583 Escrow deposits 1 ,051 ,219 Total liabilities $ 291219802 The accompanying notes are an integral part of the financial statements . 264 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30, 2003 NOTE 1 = SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Clerk of the Circuit Court is a County agency and a local governmental entity pursuant to Article 8 , Section 1 (d), of the Constitution of the State of Florida. For financial statement and reporting 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. 1 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 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 upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income determination. Public Records Modernization Fund - The Public Records Modernization Fund accounts for the proceeds from recording fees to be used for modernizing the Clerk ofthe Circuit Court's public records systems . Fiduciary Fund 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. ' B . Basis of Accounting, Measurement Focus and Presentation rThe 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 and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that ' revenues exceed expenditures they are not considered earned and are reflected as liabilities . The fiduciary fund is accounted for on the accrual basis . 265 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30 , 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Clerk 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 Commis- sioners, 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 May 1 and is reviewed by the Board, modified as required by the Board, and approved by the Board. f 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 y 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 Deposits in the governmental funds represent prepayments for services that will be used in fixture periods. The Board 's policy is to record the expenditure for the services when they are used rather than when the cash is disbursed. F. Capital Assets Tangible personal property used by the Clerk of the Circuit Court in operations is reported in the financial statements of the County. 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 in the governmental funds. H. 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" are reported as a transfer out and were $743 ,250 at year-end . 266 ' Indian River County, Florida Clerk of the Circuit Court ' Notes to Financial Statements Year Ended September 30 , 2003 NOTE 2 - CASH AND INVESTMENTS A. Deposits At September 30 , 2003 , the carrying amount of the Clerk 's deposits was $2 333 095 and the e bank balance was $2,465 , 577. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral Mprovided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. The Act established a Trust Fund, maintained by the State Treasurer, which is a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a member fails . B . Investments Florida Statutes authorize investments in certificates of deposit, savings accounts, the Local Government Surplus Funds Trust Fund administered by the Florida State Board ofAdministration, Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency, and direct obligations ofthe U. S . Treasury. The Clerk had $ 1 ,480,004 in investments with the Local Government Surplus Funds Trust Fund as of September 30, 2003 . These investments are not categorized for custodial credit risk since they are not evidenced by securities that exist in physical or book entry form . Please read the County-wide note for additional information concerning the Local 1 Government Surplus Funds Trust Fund. 1 NOTE 3 - DEFINED BENEFIT 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 ; all contributions are made by the employer. 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. 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, 2003 , were equal to 6 . 55 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 2001 , 2002and 2003 were $234 , 385 , $209, 871 , and $204,208 respectively, which is equal to 100% of the required contribution for each year. 267 Indian River County, Florida Clerk of the Circuit Court Notes to Financial Statements Year Ended September 30 , 2003 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 fife 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 2003 at an annual cost of approximately $533 ,695 . 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, 2003 : Beginning Ending Balance Balance 10/01 /02 Additions Deletions 9/30/03 Accrued Compensated Absences $ 160 ,976 $ 19,266 $ - $ 1805242 Of the $ 180,242 liability for accrued compensated absences, management estimates that $25 ,000 will be due and payable within one year. The longterm 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. 268 Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial ' Reporting 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 basic 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 , 2003 , and issued our report thereon dated January 30 , 2004 . 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 . Compliance 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 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 that are required to be reported under Government Auditing Standards. 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 in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control financial reporting and its operation that we consider to be a material weakness . This report is intended for the information of management, the Clerk of the Circuit Court, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . iCi d �ubl� � QC�nvxfw is 0hfA +k&d Vero Beach , Florida January 30 , 2004 «providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 269 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Management Comments The Honorable Jeffrey K . Barton Clerk of the Circuit Court Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Clerk of the Circuit Court, as of and for the year ended September 30 , 2003 , and have issued our report thereon dated January 30 , 2004 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Clerk of the Circuit Court for the year ended September 30, 2003 , we considered the Clerk of the Circuit Court ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention. Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. Disposition of Prior Year FindinLys and Recommendations : Comments noted in the prior year have been sufficiently implemented or otherwise resolved to our satisfaction. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report: The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 270 Harris, Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered The Honorable Jeffrey K . Barton ' Clerk of the Circuit Court Indian River County, Florida Page Two Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) : ' Nothing came to our attention which indicates that the Indian River County Clerk of the Circuit Court is or, during the year ended September 30 , 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , ' under the Rules of the Auditor General of the State of Florida. Determination of Public Records Modernization Trust Fund - F. S . Section 1 28 .24 ( 15) (d) : The fund financial statements of the Clerk of the Circuit Court may be found at pages 260 through 264 . Based on the audit procedures performed, nothing come to our attention which indicates that the Indian River County Clerk of the Circuit Court has not complied with Section 28 . 24 ( 15 ) (d) , Florida Statutes , regarding the collection and use of Public Records Modernization Trust Fund monies . CURRENT YEAR COMMENTS , DISBURSEMENTS . During audit testing , we noted client paid an invoice from a facsimile copy that resulted in a duplicate payment . The amount of the payment was immaterial to the financial statements . We ' recommend that the client implement procedures that ensure that payments, made from facsimile copies, are not duplicate payments . 1 AUTO ALLOWANCE , During compliance testing, we noted that the annual statement did not appear to comply with F . S . 112 . 061 (7) (f) . The places and mileages noted on the statements did not appear to be at least equal to the amount, allowed under Section 112 . 061 (7) (d) . The statement showed mileages to the various places the traveler went to however; it did not specify how often the traveler made these trips . The allowance payments were immaterial to the financial statements . We recommend that the client amend the form to comply with Section 112 . 061 (7) (f) of the Florida Statutes . i ' 271 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 1 The Honorable Jeffrey K . Barton Clerk of the Circuit Court Indian River County , Florida Page Three This report is intended for the information of management, the Clerk of the Circuit Court, and the Auditor General of the State of Florida. However, this report is a matter of public record , and its distribution is not limited . p4at,*4 , CMc WA4 , Qnw , AU j ase # WkW C ' ' a aaiuirk $ C'hA4 * d Vero Beach, Florida January 30 , 2004 272 ER c JEFFREY K . BARTON z �2 Clerk of Circuit Court P. O. Box 1028 Vero Beach , Florida 32961 - 1028 ��ORIOP► Telephone: (772 ) 770-5185 March 10 , 2004 Harris , Cotherman & Associates 3150 Cardinal Drive Vero Beach, FL 32963 ' Gentlemen : The following are my responses to the management comments for the 2002 -2003 fiscal year. Disbursements : ' Policies have been implemented to prevent the duplicate payment of invoices . Auto Allowance : A review of the Clerk ' s travel policy, including the annual statement for an automobile allowance , is currently underway. Once this review is complete , a travel policy will be adopted that will address this issue . I would like to thank your audit staff for their professional assistance and comments . Sincerely, Jeffrey K. Barton Clerk of the Circuit Court 1 Q� 1 1 1 1 1 1 1 ' PROPERTY APPRAISER 275 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772.234-8488 Report on Special Purpose Financial Statements P P P to ements 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, 2003 , 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 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 Property Appraiser at September 30, 2003 , 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 Property Appraiser as of September 30, 2003 , 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 January 30 , 2004 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 grants . This report is intended solely for the information and use of management, the Property Appraiser, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . ��w4�t CD'J'ktsrrt�tt �INu , f��.! � Q.adet�/�t{CrcJ e.4,ts 4AW h6hlo? 61amox 5 - e17A4 *&d Vero Beach , Florida January 30 , 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Funis Member FICPA Private Companies Practice Section 276 Indian River County, Florida Property Appraiser Balance Sheet General Fund September 30 , 2003 ' ASSETS Cash $ 53 ,382 Accounts receivable 348 Total assets $ 53 , 730 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 49 , 947 Due to other governments 19330 Deposits 2 .453 Total liabilities 53 , 730 ' Fund Equity: Fund balance _ ' Total fund equity _ Total liabilities and fund equity $ 53 , 730 ' The accompanying notes are an integral part of the financial statements . ' 277 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, 2003 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 2 ,936 ,281 $ 2 , 9975166 $ 2, 997, 166 $ Interest Miscellaneous 991 991 l Total revenues 259365281 2,9971166 299989157 991 EXPENDITURES General government 2 , 936 ,281 2,997, 166 2,996, 827 339 Total expenditures 259365281 2 , 997 , 166 2 , 996 , 827 339 Excess ofrevenues over expenditures - - 15330 15330 OTHER FINANCING USES Excess fees to Board of County Commissioners - - ( 1 ,223) ( 1 ,223 ) Excess fees to other governments _ - ( 107) ( 107) Total other financing uses - - 1 ,330 1 , 330 Net change in fund balances Fund balance at beginning of year _ Fund balance at end of year $ _ The accompanying notes are an integral part of the financial statements . 278 rIndian River County, Florida Property Appraiser ' Notes to Financial Statements Year Ended September 30 , 2003 ' NOTE 1 - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES The Property Appraiser is a County agency and a local governmental entity pursuant to Article 8 , 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 apart of the primary government of Indian River County. The financial 1 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 Fund ' The accounting records are organized for reporting purposes on the basis of a 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 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 fund are maintained on the modified accrual basis . Under the modified accrual basis , expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they 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 . ' 279 Indian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30 , 2003 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued D . Capital Assets Tangible personal property used by the Property Appraiser in operations is reported in the financial statements of the County. 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 in the governmental fund . q 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" are reported as transfers out and were $ 1 ,330 at year-end . NOTE 2 - CASH Deposits At September 30, 2003 , the carrying amount of the Property Appraiser 's deposits was $ 53 ,382, and the bank balance was $88 , 124. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. NOTE 3 - DEFINED BENEFIT 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. 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. 280 rIndian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30 , 2003 ' NOTE 3 - DEFINED BENEFIT PLAN - Continued Florida Retirement System - Continued 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, 2003 , were equal to 6 . 71 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30 , 2001 , 2002 , and 2003 were $ 160 ,357, ' $ 164,050, and $ 135 ,321 respectively, which is 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 2003 at an annual cost of approximately $270,606 . NOTE 5 - LONG-TERM LIABILITIES A summary o fchanges in long-term liabilities is as follows : ' Beginning Ending . Balance Balance 10/01 /02 Additions Deletions 09/30/03 Accrued Compensated Absences $ 66 ,279 $ 16,475 $ - $ 82 , 754 Of the $ 82 , 754 liability for accrued compensated absences , management estimates that $ 10 , 000 will be due and payable within one year. The long term liabilities are not reported in the financial statements of the Property Appraiser ' since they are not payable from available spendable resources . They are reported in the financial statements of the county. ' 281 Indian River County, Florida Property Appraiser Notes to Financial Statements Year Ended September 30, 2003 NOTE 6 - COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims are currently pending against the PropertyAppraiser. It is impossible for the PropertyAppraiser 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 PropertyAppraiser 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 ofthe PropertyAppraiser. 282 Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 ' Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting 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 bask 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, 2003 , and issued our report thereon dated January 30 , 2004 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 . ' Compliance 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 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 that are required to be reported under ' Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Property Appraiser' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Property Appraiser, and the Auditor General of the State of 1 Florida. However, this report is a matter of public record and its distribution is not limited . 111"", 6&"P444, 41 0 , tPo"i i Qddew{6rCJ Pugh * 61 &M%t94r45w 0/7" *JUd Vero Beach, Florida January 30 , 2004 "providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 283 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway A1A, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Management Comments The Honorable David C . Nolte Property Appraiser Indian River County, Florida a We have audited the basic financial statements Indian River County, Florida, including the individual fund financial statements of the Property Appraiser, as of and for the year ended September 30 , 2003 , and have issued our report thereon dated January 30 , 2004 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Property Appraiser for the year ended September 30, 2003 , we considered the Property Appraiser ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention . Also, we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report : The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Fnms Member FICPA Private Companies practice Section 284 Harris, Cotherman, Jones, Price & Associates Certified Public Accountants , Chartered ' The Honorable David C . Nolte Property Appraiser Indian River County, Florida Page Two Determination of Financial Emergency - F. S . Section 218 . 503 ( 1 ) : Nothing came to our attention which indicates that the Indian River County Property Appraiser is or, during the year ended September 30 , 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ), Florida Statutes , under the Rules of the Auditor General of the State of Florida . This report is intended for the information of management, the Property Appraiser, and the Auditor General of the State of Florida. However, this report is a matter of public record, and its distribution is not limited . ' �f tust�t CD�ldcGt»1�1, L�/kt.. , f�iult � Q+tGael�t�L!-� e. P 761je 6l & nwk&44S _ C'h A *&d Vero Beach, Florida January 30 , 2004 285 _., .. , .,, ,,. : . •�: 04W N Q� 1 1 1 1 1 1 1 1 1 ' SHERIFF ' 287 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered ~ 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 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 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, 2003 , as listed in the table of contents . These financial statements are the responsibility of the Sheriff' s 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 Sheriff at September 30 , 2003 , 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 Sheriff as of September 30, 2003 , 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 January 30, 2004 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 grants . This report is intended solely for the information and use of management, the Sheriff, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . � ► 60v3ctrM", 404 , pw , + QW pasik4) C � ,► �icbl,� asw ia** s - e171A *&d Vero Beach, Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 288 Indian River County, Florida Sheriff ' Balance Sheet Governmental Funds September 30 , 2003 Total Special Governmental General Revenue Funds ' ASSETS Cash $ 25735 , 337 $ 15462 ,488 $ 451975825 Accounts receivable - net 166 .297 22 335 188 . 632 Total assets $ 2 , 901 ,634 $ 12484 , 823 $ 4 , 386 ,457 LIABILITIES AND ' FUND EQUITY Liabilities: Accounts payable $ 1 , 374 ,269 $ 14 , 343 $ 1 , 388 , 612 Due to other governments 1 , 527, 365 Deferred revenue - 1 , 527, 365 ' Total liabilities 5 , 875 5 , 875 2 , 901 , 634 205218 2 , 921 , 852 Fund Equity: ' Fund balance - 1 ,464 , 605 1 ,464, 605 Total fund equity - 1 ,464 , 605 15464 , 605 ' Total liabilities and fund equity $ 2 ,901 , 634 $ 1 ,484 , 823 $ 4 , 386,457 ' The accompanying notes are an integral part of the financial statements . ' 289 Indian River County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds I For the Year Ended September 30, 2003 Total Special Governmental General Revenue Funds REVENUES Intergovernmental $ _ $ 97,206 $ 97,206 Charges for services 470, 906 470, 906 Fines and forfeitures 318 , 185 318 , 185 Miscellaneous - 17, 136 175136 Total revenues - 903 ,433 903 ,433 EXPENDITURES Public safety 26, 644,440 567,273 27,211 , 713 Court related Debt service : 1 , 726 , 073 - 1 , 726, 073 Principal _ Interest - Total expenditures 28 , 370, 513 567,273 28 , 937, 786 Excess ofRevenues Over (Under) Expenditures (28 , 370, 513) 336, 160 (283034,353 ) OTHER FINANCING SOURCES (USES) Transfers from Board of County Commissioners 283891 , 153 47, 134 28 , 938 ,287 Transfers to Board of County Commissioners (5209640) ( 14,312) (534,952) Total other financing sources 2823707513 322822 289403 , 335 Net change in fund balances - 368 ,982 3683982 Fund balances at beginning ofyear - 1 ,095 ,623 1 , 095 ,623 Fund balances at end of year $ - $ 1 ,464,605 $ 1 ,464,605 The accompanying notes are an integral part of the financial statements . 290 Indian River County, Florida Sheriff Budgetary Comparison Statement General Fund For the Year Ended September 30 , 2003 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES $ Total revenues EXPENDITURES Public safety 269277,200 27, 137, 766 26,644 ,440 4939326 Court related 1 , 753 ,387 1 , 753 , 387 1 , 726, 073 27 , 314 Total expenditures 28 , 030, 587 289891 , 153 281370, 513 520 , 640 Excess of revenues over (under) expenditures (281030, 587) (28 , 891 , 153 ) (2853709513 ) 5209640 OTHER FINANCING ' SOURCES (USES) Transfers from Board of County Commissioners 2890309587 289891 , 153 289891 , 153 Transfers to Board of County - _ Commissioners (520, 640) (520 640) Total other financing sources 289030, 587 289891 , 153 28 , 370, 513 (520,640) Net change in fund balances Fund balances at beginning of year _ Fund balances at end of year $ _ r ' The accompanying notes are an integral part of the financial statements . 291 Indian River County, Florida Sheriff x Statement of Fiduciary Net Assets Agency Fund September 30, 2003 ASSETS Cash and cash equivalents $ 120, 824 Total assets $ 120 , 824 LIABILITIES Due to others $ 16, 838 Escrow deposits 103 , 986 Total liabilities $ _ 120, 824 Jp The accompanying notes are an integral part of the financial statements . 292 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Sheriff is a County agency and a local governmental entity pursuant to Article 8 , section 1 (d) , of the 1 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 ofthe Sheriffonly. The format ofthe Sheriff's statements has beenre ared in accordance with the presentation requirements of GASB 34 for fund financial statements . p p The following is a summary of the significant accounting principles and policies used in there ar accompanying financial statements , p p anon of the 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 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 to expenditures for specified purposes . This fund accounts for police education and law enforcement equipment. for expenditures 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 . B . Basis of Accounting, Measurement Focus and Presentation The accounts ofthe governmental funds and the fiduciary fund are maintained on the modified accrual basis. Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred, and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they are not considered earned and are reflected as liabilities . 293 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30 , 2003 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, which shall show the estimated amounts of all proposed expenditures for operating and equipping the Sheriff's office and jail other than capital improvements of County buildings . 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 . °t D . Compensated Absences i 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 in the governmental funds . 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" are reported as a transfer out and were $534, 952 at year-end. 1 NOTE 2 - CASH Deposits At September 30, 2003 , the carrying amount of the Sheriff's deposits was $4,318 ,649, and the bank balance was $4, 831 ,500. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. 294 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30, 2003 ' NOTE 3 - CAPITALASSETS Tangible personal property used by the Sheriffin operations is reported in the financial statements of the County. State law requires the Sheriffto 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 /02 Additions Deletions 09/30/03 Tangible Personal Property $ 9, 386 , 350 $ 1 ,206,008 $ 581 ,468 $ 10, 010, 890 NOTE 4 - DEFINED BENEFIT PLAN Florida Retirement System Plan Description : The Sheriff's employees participate in the Florida Retirement System (FRS), a cost-sharing multiple-employer public employee retirement system , administered by the Florida Department of Administration. The FRS is noncontributory for all members ; all contributions are made by the employer. 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 . 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, 2003 , were equal to 13 . 68 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 200 1 , 2002, and 2003 were $2,441 , 515 , $2 ,332,434, and $292969902 respectively, which is equal to 100% ofthe 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 The Sheriffparticipated in the County's self-insurance program g ��t the Self-insurance Fund. $2,212 ,257. p during fiscal year 2003 at an annual cost of approximately 295 Indian River County, Florida Sheriff Notes to Financial Statements Year Ended September 30 , 2003 NOTE 6 - LONG-TERM LIABILITIES A summary of changes in Long-Term Liabilities is as follows : Beginning Ending Balance Balance 10/01 /02 Additions Deletions 09/30/03 Accrued Compensated Absences $ 966 , 362 $ 129, 597 Of the $ 1 ,095 ,959 liability for accrued compensated absences, management estimates that $ 135,000 will be due and payable within one year. The long term liabilities are not reported in the financial statements of the Sheriffsince they are not payable from available spendable resources . They are reported in the financial statements of the County. NOTE 7 — OPERATING LEASES t The Sheriffhas entered into noncancelable operating leases as lessee. Lease expenditures totaled $48,373 for the year ended September 30, 2003 . 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 2004 $ 94, 683 2005 91 , 521 2006 61 , 503 2007 15 , 807 2008 2 ,319 Total Future Minimum Lease Payments $ 265 833 NOTE 8 - COMMITMENTS AND CONTINGENCIES Litigation Various suits and claims are currently pending against the Sheriff It is impossible for the Sheriffto 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 Sheriffintends to vigorously defend against these lawsuits and believes he has a good chance of prevailing on their merits . 296 Harris , Cotherman Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Phone 772-234.8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting 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 basic financial statements of Indian River County, Florida including the fund financial statements of the Sheriff, as of and for the year ended September 30, 2003 , and issued our report thereon dated January 30, 2004 . 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 . Compliance As part of obtaining reasonable assurance about whether the Sheriff' s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws , regulations 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 1 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 . Internal Control Over Financial Reporting In planning and performing our audit, we considered the Sheriff' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduced to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weakness . This report is intended for the information of management, the Sheriff, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . �l4tud�r �o+Nctt»t�t, Q/7rte , �i�a/ � Qaeaatcftu CetJc rid ?cblra aaixwlurls - 191744pjd Vero Beach , Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies practice Section 297 3 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772.234.8484 Fax 772-234-8488 Management Comments The Honorable Roy Raymond Sheriff Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Sheriff, as of and for the year ended September 30 , 2003 , and have issued our report thereon dated January 30, 2004 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement. In planning and performing our audit of the fund financial statements of the Indian River County Sheriff for the year ended September 30, 2003 , we considered the Sheriff' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention. Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. Status of Prior Year Comments $ No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida: Florida Department of Banking and Finance Financial Report : The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32( 1 )(b) of the Florida Statues has been completed. We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 298 Harris , Cotherman Jones , Price & Associates Certified Public Accountants - Chartered The Honorable Roy Raymond Sheriff Indian River County, Florida Page Two Determination of Financial Emergency - F. S . Section 218 .503 ( 1 ) : Nothing came to our attention which indicates that the Indian River County Sheriff is or, during the year ended September 30 , 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida . CURRENT YEAR COMMENTS : DISBURSEMENTS : During our control testing of disbursements from the Sheriffs " Individual " account we noted that the procedures for secondary approval and review of disbursement documentation were not being performed . All disbursements tested did appear to have proper support . Overall disbursements from this account are not material to the Sheriffs operating statements . We recommend that the client conduct the same disbursement procedures for this account as are applicable to all other Sheriff Department disbursements . 1 This report is intended for the information of management, the Sheriff, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . C'..e 4yma tWjid 0hsA *&d Vero Beach, Florida January 30 , 2004 1 299 fp\ FF L °fie g \ M RIY C ertff ROY RAYMOND • INDIAN RIVER COUNTY MEMBER FLORIDA SHERIFFS ' ASSOCIATION MEMBER OF NATIONAL SHERIFFS ' ASSOCIATION 4055 41st AVENUE VERO BEACH , FLORIDA 32960- 1808 PHONE (772) 569-6700 March 5 , 2004 Harris, Cotherman & Associates 5070 N. AIA, Suite 250 Vero Beach, FL 32963 Gentleman : The following is our response to the management comment for the 2002 -2003 financial 1 statements . Disbursements: We are currently conducting secondary approval and/or review of disbursement documentation for the "Individual " account and will ensure that this procedure continues to be performed. We would like to thank the audit staff of Harris, Cotherman and Associates for their constructive comment and assistance . i Sincerely, Roy Raymond, Sheriff RR:hh The 173rd Internationally Accredited Law Enforcement Agency i� ts.A�- si �s Accredited by the Commission on Accreditation for Law Enforcement Agencies, Incorporated SUPERVISOR OF ELECTIONS 1 i 1 1 1 1 301 t Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234.8488 s 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 , 2003 , 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 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 Supervisor of Elections at September 30, 2003 , 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 Supervisor of Elections as of September 30, 2003 , 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 January 30, 2004 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 grants . This report is intended solely for the information and use of management, the Supervisor of Elections, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . u j 4444 14" C�wt Puhh * aamid�s - 017sA *,e d Vero Beach , Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 302 Indian River County, Florida Supervisor of Elections Balance Sheet General Fund September 30 , 2003 ASSETS Cash $ 163 , 318 Accounts receivable 1 ,059 Deposits 319302 Total assets $ 195 ,679 LIABILITIES AND FUND EQUITY Liabilities : Accounts payable $ 29,675 Due to other governments 1669004 Total liabilities 1959679 Fund Equity : Fund balance _ Total fund equity _ ' Total liabilities and fund equity $ 195 , 679 i 1 1 1 1 ' The accompanying notes are an integral part of the financial statements . 303 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, 2003 Variance with Final Budget - Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ - $ - $ 119,279 $ 1197279 Interest - - 2 , 161 2 , 161 Total revenues - - 121 ,440 121 ,440 EXPENDITURES General government 821 , 507 969, 507 924,943 44 , 564 Total expenditures 821 , 507 969, 507 924, 943 44, 564 _ Excess ofrevenues - over (under) expenditures (821 , 507) (969, 507) (803 , 503 ) 166 , 004 OTHER FINANCING SOURCES (USES) Transfer from Board of County Commissioners 821 , 507 969, 507 969, 507 - Transfer to Board of County Commissioners - - ( 166, 004) ( 166,004) Total other financing sources (uses) 821 , 507 969, 507 803 , 503 1665004 Net change in fund balances Fund balance at beginning of year _ Fund balance at end of year $ _ The accompanying notes are an integral part of the financial statements . 304 rIndian River County, Florida Supervisor of Elections ' Notes to Financial Statements Year Ended September 30 , 2003 NOTE 1 = SUMMARY OF SIGNIFICANTACCOUNTING POLICIES The Supervisor of Elections is a County agency and a local governmental entity pursuant to Article 8 , 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 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 have 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 Fund The accounting records are organized for reporting purposes on the basis of a 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 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 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 Fund are maintained on the modified accrual basis . Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they are not considered earned and are reflected as liabilities . C. Budgetary Requirements State statutes require the Supervisor of Elections to submit a proposed budget to the Board of County Commissioners by May 1 of each year. After review and approval of the budget by the Board, the Supervisor of Elections is authorized to transfer budgeted amounts between objects 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 . 305 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30, 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued D. Deposits Deposits in the governmental funds represent 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. E. Capital Assets Tangible personal property used by the Supervisor of Elections in operations is reported in the financial statements of the County . 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 in the governmental fund. 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 . These "excess fees" are reported as transfers out and were $ 166,004 at year-end. NOTE 2 - CASH Deposits At September 30, 2003 , the carrying amount of the Supervisor of Elections ' deposits was $ 163 , 318 , and the bank balance was $ 170,037 . All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. NOTE 3 - DEFINED BENEFIT 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 ; all contributions are made by the employer. 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. Retirement benefits are 306 ' Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30, 2003 ' NOTE 3 - DEFINED BENEFIT PLAN Florida Retirement System based on age, average compensation, and years-of-service credit where computed average compensation is as the P 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 , 2003 , were equal to 7 . 78 % of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30 , 2001 , 2002 and 2003 were $ 34 , 532 , $31 ,218 , and $28 ,485 respectively, which is 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 Supervisor of Elections participated in the County's self-insurance program during fiscal year 2003 at an annual cost of approximately $60,227 . NOTE 5 - CHANGES IN LONG-TERM LIABILITIES A summary of changes in long-term liabilities is as follows : Beginning Ending Balance Balance 10/01 /02 Additions Deletions 09/30/03 Accrued Compensated Absences $ 119705 $ 797 $ - $ 125502 Of the $ 12 ,502 liability for accrued compensated absences, management estimates that $3 ,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 ofthe 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, 186 for the year ended September 30, 2003 . 307 Indian River County, Florida Supervisor of Elections Notes to Financial Statements Year Ended September 30, 2003 NOTE 6 - OPERATING LEASES - Continued >{3 ti 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 Amount 2004 $ 5 900 2005 5 , 900 2006 983 Total Future Minimum Lease Payments $ 12 , 783 308 Harris , Cotherman, ■ Jones , Price & Associates ■ Certified Public Accountants • Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Report on Compliance and on Internal Control over Financial Reporting 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 basic 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, 2003 , and issued our report thereon dated January 30, 2004 . 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 . ' Compliance As part of obtaining reasonable assurance about whether the Supervisor of Elections ' financial statements are free of material 1 misstatement, we performed tests of its compliance with certain provisions of laws, regulations 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 that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting ' In planning and performing our audit, we considered the Supervisor of Elections ' internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Supervisor of Elections, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . 41,w Ra �4d OW�{L,tJ e� X10 61d1' pu 494tt 5 w �hNlJeleld Vero Beach , Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice section 309 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered s 5070 North Highway AlA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Management Comments The Honorable Kay Clem Supervisor of Elections Indian River County, Florida We have audited the basic financial statements of Indian River County, Florida, including the individual fund financial statements of the Supervisor of Elections , as of and for the year ended September 30 , 2003 , and have issued our report thereon dated January 30 , 2004 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are -free of material misstatement. In planning and performing our audit of the fund financial statements of the Indian River County Supervisor of Elections for the year ended September 30, 2003 , we considered the Supervisor of Elections ' internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, no weaknesses in procedures and controls which are required to be reported came to our attention . Also , we have tested your operations for compliance with applicable laws and have no additional comments required to be included by reason of the Rules of the Auditor General of the State of Florida. No comments were made in the prior year. The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report : The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32 ( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 310 Harris, Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered The Honorable Kay Clem Supervisor of Elections Indian River County, Florida Page Two Determination of Financial Emergency - F . S . Section 218 . 503 ( 1 ) : ' Nothingcame to our attention which indicates that the Indian River Count Supervisor of Elections Y p is or, during the year ended September 30 , 2003 , was in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ) , Florida Statutes , under the Rules of the Auditor General of the State of Florida. ' Status of Prior Year Comments : All comments noted in the prior year have been resolved . ' This report is intended for the information of management, the Supervisor of Elections , and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is ' not limited . �usua , Covkam�.+r, qnw , �'x�u � I.�aD �u�i�c�u � w u'o1 W hd aam+xf s 017" *nerd Vero Beach, Florida January 30, 2004 311 ��tY � C� � ;: � y , �',. N : . .-r ` � � M �� Q� 1 1 1 1 1 1 1 1 TAX COLLECTOR ' 313 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 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 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 , 2003 , 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 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 Tax Collector at September 30 , 2003 , 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 Tax Collector as of September 30, 2003 , 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 January 30, 2004 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 grants . This report is intended solely for the information and use of management, the Tax Collector, the Auditor General and applicable Federal and State agencies, and is not intended to be and should not be used by anyone other than these specified parties . �i'ttRt�4�, CtNkLtMMtt Qjkte , �atll.I � Qe4 ♦��� � etJ� id ?ubti' � Qdnycftv {s 017A4 *&d Vero Beach, Florida January 30, 2004 "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 314 Indian River County, Florida Tax Collector Balance Sheet General Fund September 30, 2003 ASSETS Cash and cash equivalents $ 212075275 ' Accounts receivable 41 , 783 Inventories 471 Total assets $ 29249 , 529 LIABILITIES AND FUND EQUITY ' Liabilities : Accounts payable $ 338 , 628 Due to other governments 1 ,9105584 ' Deposits 317 Total liabilities 2 ,249 , 529 ' Fund Equity : _ Fund balance ' Total liabilities and fund equity $ 2,249 , 529 ' The accompanying notes are an integral part of the financial statements . ' 315 Indian River County, Florida Tax Collector Statement of Revenues, Expenditures , and Changes in Fund Balances In Budget and Actual General Fund It For the Year Ended September 30 , 2003 Variance with Final budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Charges for services $ 3 ,9551370 $ 39955 ,370 $ 49286, 040 $ 330,670 Interest 40 , 000 4000 515663 11 ,663 Total revenues 3 ,995 ,370 33995 ,370 4, 3373703 342 , 333 1 EXPENDITURES General government 29363 , 877 2 ,363 , 877 2 , 3565533 7,344 Debt service : s` Principal 59, 345 59 , 345 595345 - Interest 11 ,241 119241 119241 - Total expenditures 2 ,4341463 2 ,4345463 2 ,4279119 7, 344 Excess of revenues over expenditures 1 , 560 , 907 19560,907 1 ,9109584 349,677 OTHER FINANCING SOURCES (USES) Excess fees to Board of County Commissioners ( 1 ,371 ,919) ( 1 , 371 ,919) ( 176429750) (270, 831 ) Excess fees to Other Governments ( 188 ,988) ( 1889988) (267, 834) (785846) . Total other financing sources (uses) ( 1 , 560 , 907) ( 1 ,560, 907) ( 1 , 9101584) (349,677) Net change in fund balances Fund balances at beginning of year _ Fund balances at end of year $ _ The accompanying notes are an integral part of the financial statements . 316 ' Indian River County, Florida Tax Collector ' Statement of Fiduciary Net Assets Agency Fund September 30 , 2003 ' ASSETS Cash and cash equivalents $ 3 , 189, 103 Total assets $ 3 , 1899103 LIABILITIES Due to other governments $ 3 , 189 , 103 ' Total liabilities $ 3 , 189 , 103 The accompanying notes are an integral part of the financial statements . 317 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Tax Collector is a County agency and a local governmental entity pursuant to Article 8 , 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 !m g p p policies used m the preparation of the accompanying financial statements . r A. Description of Funds The accounting records are organized for reporting purposes on the basis of a governmental fund 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 upon determination of financial position and changes in financial position (sources , uses and balances of financial resources) rather than upon net income determination. Fiduciary Fund Fiduciary Fund - The Fiduciary Fund of the Tax Collector is the Agency Fund, which is used to account for assets held by the Tax Collector as an agent. The Agency Fund is custodial in nature and does not involve measurement of results of operations . B . Basis of Accounting, Measurement Focus and Presentation The accounts of the governmental fund and fiduciary fund are maintained on the modified accrual basis . Under the modified accrual basis, expenditures are recorded at the time liabilities are incurred and revenues are recorded when received in cash or when they are considered both measurable and available and as such, are susceptible to accrual . To the extent that revenues exceed expenditures, they are not considered earned and are reflected as liabilities . 318 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2003 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued C. Budgetary Requirements State statutes require the Tax Collector to prepare an annual budget which clearly reflects the revenues available to his office and the functions for which money is to be expended. The budgeted revenues and expenditures are subject to the review and approval of the Department of Revenue . Management is authorized to transfer budgeted amounts between objects and departments as long as management does not exceed the total appropriations of a fund. Department of Revenue approval is only required when unanticipated revenues are received that management wishes to have appropriated, thereby increasing the total appropriations. The budget is prepared on a basis consistent with generally accepted accounting principles. D. 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 . Capital Assets Tangible personal property used by the Tax Collector in operations is reported in the financial statements of the ' County . F. 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 in the governmental fund . ' 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 and other governments . These "excess fees" are reported as transfers out and were $ 1 ,910, 584 at year-end . ' NOTE 2 - CASH AND INVESTMENTS A. Deposits At September 30, 2003 , the carrying amount of the Tax Collector 's deposits was $ 1 ,428 ,043 , and the bank balance ' was $ 1 ,480, 700. All deposits with financial institutions were 100% insured by federal depository insurance or by collateral provided by qualified public depositories to the State Treasurer pursuant to the Public Depository Security Act of the State of Florida. 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. ' 319 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30, 2003 NOTE 2 - CASH AND INVESTMENTS - Continued B . Investments Florida Statutes authorize investments in certificates of deposit, savings accounts , the Local Government Surplus Funds Trust Fund administered by the Florida State Board ofAchnnustration, 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 had $3 ,968 , 335 with the Local Government Surplus Funds Trust Fund as of September 30, 2003 . This investment is not categorized for custodial risk since it is not evidenced by securities that exist in physical or book entry form. Please read the County-wide note for additional information concerning the Local Government Surplus Funds Trust Fund. NOTE 3 - INVENTORIES Inventories are valued at cost, which approximates market, using the "first-in, first-out" method of accounting . The costs of general fund inventory are recorded as an expenditure when consumed rather than when purchased . Inventory of the Tax Collector, included in the general fund, represents postage . NOTE 4 - DEFINED BENEFIT 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. 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 . 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 , 2003 , were equal to 6 . 84% of the annual covered payroll . Contributions to the FRS for the fiscal years ended September 30, 2001 , 2002 , and 2003 were $95 , 846, $94,786, and $78 ,844 respectively, which is equal to 100% of the required contribution for each year. 320 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30, 2003 ' 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 2002 at an annual cost of approximately $242,093 . ' NOTE 6 - 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, 2003 : Fiscal year ending Amount 2004 $ 52 ,244 2005 52 ,244 2006 52 ,244 2007 525244 2008 39, 183 Total minimum lease payments 2485159 Less : Amount representing interest 24 , 683 Present value of net minimum ' lease payments $ 2239476 The following is an analysis of the leased property under capital leases : Type of Property Capitalized Cost Computer equipment $ 5135961 ' The equipment listed above is reported in the financial statements of the County. Monthly payments for the computer equipment leases are made by the General Fund. ' B . Changes in Long-Term Liabilities Beginning Ending Balance Balance 10/01 /02 Additions Deletions 09/30/03 Accrued Compensated Absences $ 53 , 853 $ 2 ,004 $ - $ 559857 Capital Leases 282 , 821 - 59,345 223 ,476 $ 336 ,674 $ 2 ,004 $ 59 ,345 $ 279, 333 321 Indian River County, Florida Tax Collector Notes to Financial Statements Year Ended September 30 , 2003 NOTE 6 - LONG-TERM LIABILITIES - Continued B. Changes in Long-Term Liabilities - Continued Of the $55 , 857 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 lease p g s as lessee for office space and office equipment. Lease expenditures totaled $ 195 , 522 for the year ended September 30, 2003 . 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 2004 $ 130, 560 2005 131 ,936 2006 133 , 313 2007 111 ,500 2008 112 ,250 Thereafter 426,250 Total Future Minimum Lease Payments $ 1 ,045 , 809 322 Harris , Cotherman, ' Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 ' Report on Compliance and on Internal Control over Financial Reporting 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 basic 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, 2003 , and issued our report thereon dated January 30, 2004 . 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 . ' Compliance 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 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 that are required to be reported under Government Auditing Standards . Internal Control over Financial Reporting In planning and performing our audit, we considered the Tax Collector ' s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting . Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses . A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that ' misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions . We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses . This report is intended for the information of management, the Tax Collector, and the Auditor General of the State of Florida . However, this report is a matter of public record and its distribution is not limited . Vero Beach , Florida January 30 , 2004 ' "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA ' Private Companies Practice Section 323 Harris , Cotherman, Jones , Price & Associates Certified Public Accountants - Chartered 5070 North Highway AIA, Suite 250 Vero Beach, FL 32963 Phone 772-234-8484 Fax 772-234-8488 Management Comments `r The Honorable Charles W. Sembler Tax Collector Indian River County, Florida We have audited the basic 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 , 2003 , and have issued our report thereon dated January 30 , 2004 . We conducted our audit in accordance with generally accepted auditing standards and 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 referred to above are free of material misstatement . In planning and performing our audit of the fund financial statements of the Indian River County Tax Collector for the year ended September 30 , 2003 , we considered the Tax Collector ' s internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the fund financial statements and not to provide assurance on the internal control structure . As a result, we have issued a report dated January 30, 2004 on our consideration of the Tax Collector' s internal control structure and its compliance with laws and regulations and have noted reportable conditions in that report . G, The following comments are required by the Auditor General of the State of Florida : Florida Department of Banking and Finance Financial Report , The financial report required to be filed with the Florida Department of Banking and Finance pursuant to Section 218 . 32( 1 )(b) of the Florida Statutes has been completed . We compared the report with the financial audit report and noted no exceptions . Determination of Financial Emergency - F. S. Section 218 . 503 ( 1 ) : Nothing came to our attention which indicates that the Indian River County Tax Collector is , or during the year ended September 30, 2003 was , in a state of financial emergency as a consequence of conditions described in Section 218 . 503 ( 1 ), Florida Statutes, under the Rules of the Auditor General of the State of Florida. "Providing Vision and Direction to our Clients" Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section 324 Harris, Cotherman, ' Jones, Price & Associates Certified Public Accountants • Chartered The Honorable Charles W. Sembler Tax Collector Indian River County , Florida Page Two t STATUS OF PRIOR YEAR COMMENTS : No comments noted . CURRENT YEAR COMMENTS : No comments noted . This report is intended for the information of management, the Tax Collector, and the Auditor General of the State of Florida. However, this report is a matter of public record and its distribution is not limited . � � C:OV'�t.Gtl9'I�t•1f , Q/7W , �P�l.! � Qad bf�R1�C1 Vero Beach, Florida January 30, 2004 ' 325 " i.. . �i i� t*yr � eF Cti� �� ,•• ` � 'J• � N L . . L•: M Y� Q�