Okaloosa County BOCC — May 20, 2014 — CAFR_13 — reading text

regulations. The effect of this change in estimates has been reflected in the operations of the Solid Waste Enterprise Fund and has increased net income by $178,106. The estimated liability for landfill closure and post closure care costs has a balance of $3,401,208 as of September 30, 2013. 59  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 8 – INTERFUND BALANCES AND ACTIVITY The composition of interfund balances as of September 30, 2013 is as follows: Receivable Fund Payable Fund Amount Purpose General Tourist Development $ 28,000 Fees General Nonmajor Governmental 27 Fees General Nonmajor Governmental 45,495 Interfund loan General Water and Sewer 44 Fees General Airport 219 Fees General Convention Center 18,667 Fees General Nonmajor Enterprise 150,000 Cost allocation General Nonmajor Enterprise 201,462 Interfund loan General Internal Service 317,671 Interfund loan General Internal Service 13,229 Internal Services General Fiduciary Fund Type 14,674 Court fees General Fiduciary Fund Type 5,783 Fees collected General Fiduciary Fund Type 8,443 Collected fines and fees County Transportation Internal Service 50,000 Interfund loan Tourist Development Fund General 431 Excess Fees Capital Outlay General 2 Interest Capital Outlay General 119,178 Vessel commissions Capital Outlay Internal Service 40,000 Interfund loan Nonmajor Governmental General 1,677 Excess Fees Nonmajor Governmental General 10 Interest Nonmajor Governmental General 40,138 Restricted fees Nonmajor Governmental Nonmajor Governmental 17,488 Fees collected Nonmajor Governmental Internal Service 255,000 Interfund loan Nonmajor Governmental Fiduciary Fund Type 117,502 Collected fines and fees Nonmajor Governmental Fiduciary Fund Type 1,995 Online fees Water and Sewer Internal Service 50,000 Interfund loan Convention Center Tourist Development Fund 426,307 Tax allocation Nonmajor Enterprise General 8 Interest Nonmajor Enterprise General 41,918 Baker Acts Nonmajor Enterprise Internal Service 40,000 Interfund loan Internal Service General 79 Fuel and maintenance Fiduciary Fund Type General 340 Fees Fiduciary Fund Type General 669 Restricted fees Total $ 2,006,456 60  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 8 – INTERFUND BALANCES AND ACTIVITY – CONTINUED Interfund transfers: Transfer In Transfer Out Amount Purpose General Tourist Development $ 516,719 Beach safety support General Capital Outlay 309,500 Allocation of tax revenues General Nonmajor Governmental 57,464 Transfer additioanl funding General Nonmajor Governmental 18,640 Transfer additioanl funding General Nonmajor Governmental 806,713 Allocation of tax revenues General Nonmajor Governmental 28,000 Allocation of racing monies General Convention Center 428,126 Beach safety support County Transportation Trust Nonmajor Governmental 2,695,383 Allocatin of state revenue sharing Tourist Development General 431 Excess fees Capital Outlay General 140,000 Transfer additioanl funding Captial Outlay Nonmajor Governmental 609,200 Transfer additioanl funding Nonmajor Governmental General 1,676 Excess fees Nonmajor Governmental Tourist Development 81,399 Debt service transfer Nonmajor Governmental Nonmajor Governmental 638,818 Debt service transfer Nonmajor Governmental Nonmajor Governmental 4,000 Allocation of racing monies Nonmajor Enterprise Nonmajor Governmental 33,000 Allocation of racing monies Total $ 6,369,069 NOTE 9 - LEASES Operating Leases – Lessor The Board of County Commissioners leases three county-owned parks and park buildings located on Okaloosa Island to outside parties. Capitalized investment in these assets is $6,588,730. Accumulated depreciation of $2,152,262 has been recorded as of September 30, 2013. All of the leases were for a 25- year period. However, two of the leases have been renegotiated and the period extended to thirty years. Three of the leases contain a 20% rent increase every five years. The first renegotiated lease contains a fixed rental through 2029. The second renegotiated lease contains a contingent rent fee of 15% of gross revenue if that amount is greater than the set rent amount through 2012. To date, the contingent rent option has not been needed. The remaining terms of the leases range from 1 to 17 years. The Board of County Commissioners leases land and a building to a convenience store company. Capitalized investment in the building is $132,488. Accumulated depreciation of $48,027 has been recorded as of September 30, 2013. The lease was renegotiated to a five year lease with four five-year renewals beginning in 2008. The rent will increase at the beginning of each option period by the consumer price index. These option periods extend through 2032. The Board of County Commissioners leases space in a building to six (6) leases. Capitalized investment in the building is $546,688. The one year leases may have two (2) one year renewals through 2013. Rental fees total $3,025 monthly. The Board of County Commissioners has leased space on a water tower to a wireless communication company. The five year lease can be renewed for five five-year periods through 2038. Monthly rental fees begin at $833 and increase at each renewal to an amount equal to one hundred two percent of the monthly rent in effect immediately prior. There is no capitalized investment related to this lease. 61  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 9 – LEASES - CONTINUED Operating Leases – Lessor - Continued The Board of County Commissioners has leased space on a telecommunications tower and the parcel of land on which it is located to a wireless communication company. The five year lease can be renewed for four five-year periods through 2031. Monthly rental fees begin at $1,900 and increase at each renewal period by 15% to $3,324 in the final renewal period. There is no capitalized investment related to this lease. The Board of County Commissioners has entered into operating leases with various lessees and concessionaires for lease of space and facilities at the Okaloosa County Air Terminal, the Bob Sikes Airport and the Destin Airport. Lease periods vary with expiration dates through 2048. Capitalized investment in assets associated with these leases is $42,805,455. Accumulated depreciation of $7,299,803 has been recorded as of September 30, 2013. The Board of County Commissioners leases land on Okaloosa Island to a company to operate a marine life center. The 10 year lease can be renewed for four (4) optional 10 year periods through 2062. Annual rental fees begin at $75,000 with annual consumer price index increase. The Board of County Commissioners leases land on Okaloosa Island to a company to operate a Wild Willy's Adventure Island. The 10 year lease can be renewed for four (2) optional 10 year periods through 2042. Annual rental fees begin at $65,000 with annual consumer price index increase. The Board of County Commissioners leases office space at the Fort Walton Beach Water and Sewer building. Capitalized investment in these assets is $2,995,873. Accumulated depreciation of $1,535,590 has been recorded as of September 30, 2013. In June 2013, the first of two (2) year optional extensions was exercised. Rental fees total $22,604 annually. Total minimum future rentals for material operating leases in which the Board of County Commissioners is the lessor are as follows: Fiscal Year Ended September 30 2014 $ 1,516,035 2015 1,474,076 2016 1,472,973 2017 1,472,155 2018 1,449,384 Thereafter 13,918,009 $ 21,302,632 Operating Leases – Lessee 1. The Board of County Commissioners leases the land on which the airport facilities are located from the United States Government under a thirty-year lease agreement expiring in February 2031. The lease was renegotiated in 2008 adding an additional 22.6 acres for the rental car facilities under a twenty- five year lease expiring in September 2032. The land lease agreement contains a built in rent increase of 3% for annual escalation factor. The lease has an option for renewal at the end of the current lease period. The future minimum lease payments total $9,537,095 over the life time of the lease. Lease expense for fiscal year 2013 was $368,649. 62