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

Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 9 – LEASES - CONTINUED Operating Leases – Lessee - Continued 2. The Board of County Commissioners leases the land on which Water and Sewer's Water Reclamation Facility is located from the United States Government under a 30 year lease agreement expiring in September 2037. The lease agreement contains a built in rent increase of 3% for annual escalation factor. The lease has an option of renewal at the end of the current lease period. The future minimum lease payments total $11,723,180 over the life time of the lease. Lease expense for fiscal year 2013 was $358,826. 3. The Board of County Commissioners leases office space used by the Tax Collector and the Property Appraiser through September 30, 2014. The rent is based on $33,147 per month plus a proportionate amount of any annual Consumer Price Index increase beginning in year three (3). The first of three (3) one year renewals was exercised in 2012. Based on assumed increases of 3%, future minimum lease payments total $1,726,335. Lease expenditure for fiscal year 2013 was $515,235. 4. The Board of County Commissioners leases eight Volvo G930 Motor Graders used by public works department for the Board through January 2014. The two three (3) year leases are based on monthly payments of $6,790 at 4.31% interest with a balloon payment of $480,000 in June 2013 and $6,249 with a balloon payment of $483,232 in January 2015. Future lease payments total $18,746 for the remaining term of the lease. Lease expenditure for fiscal year 2013 was $129,306. 5. The Board of County Commissioners leases 10 Airport fleet vehicles from Enterprise Leasing under a lease agreement expiring 24 months from the date of delivery. The lease rates range from $297 to $430 per vehicle per month with future minimum lease payment of $37,258. Lease expenditure for fiscal year 2013 was $45,681. 6. The Clerk of Circuit Court leases copier equipment under a non-cancelable operating lease effective for 48 months. Monthly payments under the lease are $4,414. Future minimum lease payments for the equipment lease total $13,242 through December 2013. Lease expenditure for the fiscal year ended September 30, 2013 was $53,535. 7. The Clerk of Circuit Court leases postal equipment for the Crestview office under a non-cancelable operating lease effective for 48 months. Monthly payments under the lease are $596. Future minimum lease payments for the equipment lease totals $1,788 through December 2013. Total lease expenditure for fiscal year ended September 30, 2013 was $7,152. 8. The Clerk of Circuit Court leases postal equipment for the Shalimar office under a non-cancelable operating lease effective for 60 months. Monthly payments under the lease are $410. Future minimum lease payments for the equipment lease totals $6,150 through December 2015. Total lease expenditure for fiscal year ended September 30, 2013 was $4,920. 9. The Clerk of Circuit Court leases postal equipment for the Shalimar office under a non-cancelable operating lease effective for 5 years. Monthly payments under the lease are $90. Future minimum lease payments for the equipment lease totals $3,240 through September 2016. Total lease expenditure for fiscal year ended September 30, 2013 was $1,080. 10. The Sheriff rents office space under an operating lease which expires in December, 2012. Monthly lease payments are $10,500. The lease expenditure for fiscal year ended September 30, 2013 was $132418. The Sheriff has continued to lease the space under the same rate in 2013. No formal renewal noted. 63  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 9 – LEASES - CONTINUED Operating Leases – Lessee - Continued 11. The Tax Collector rents office space for a decentralized location to accommodate residents in a certain area of the County. The twenty-year lease expires in 2025. As of October 1, 2013, the yearly rental is $234,031 with minimum lease payments for years 2014 through 2025 of $3,523,333. Total lease expenditure for fiscal year ended September 30, 2013 was $242,279. Total lease expenditure/expense for material operating leases in which the County is the lessee for fiscal year ended September 30, 2013 amounted to $1,859,081. Future minimum lease payments for these leases are as follows: Fiscal Year Ended September 30 2014 $ 1,493,001 2015 1,444,436 2016 1,482,736 2017 1,522,297 2018 1,102,957 2019-2023 5,967,934 2024-2028 5,708,340 2029-2033 5,038,391 2034-2038 2,830,275 $ 26,590,367 NOTE 10 – LONG-TERM DEBT Primary Government The following debt issues are outstanding for September 30, 2013. Governmental Activities: REVENUE BONDS $26,615,000 Sales Tax Revenue Bonds, Series 2009, serial and term bonds with stated interest rates ranging from 3.0 percent to 6.375 percent compounded semi-annually through October 1, 2039; issued in denominations of $5,000 maturity value due in annual installments of $315,000 to $1,495,000 from October 1, 2011 through October 1, 2039. Sales tax revenues along with any direct federal subsidy payments received with respect to the Taxable Series 2009B Bonds (Direct Payment Build America Bonds) are pledged for payment of the bonds. Proceeds of the bonds are being used to finance the construction of a new judicial center complex in the County. This issue is subject to federal arbitrage regulations. $25,725,000 64  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 10 – LONG-TERM DEBT - CONTINUED Primary Government - Continued Governmental Activities - Continued: REVENUE BONDS - CONTINUED $3,600,000 Capital improvement Revenue Bond, Series 2011, serial bonds with stated interest rate of 3.72 percent compounded semi-annually through October 1, 2030; issued in denominations of $5,000 maturity value due in annual installments of $133,000 to $259,000 from October 1, 2012 through October 1, 2030. General governmental revenues are pledged for the payment of the bonds. Proceeds of the bonds have been used to finance the purchase of the Newman C. Brackin Building to be used for office space. This issue is subject to federal arbitrage regulations. 3,467,000 Total Governmental Activities Revenue Bonds 29,192,000 LOANS AND NOTES $5,000,000 Private Bank Loan from Hancock Bank with fixed interest rate of 1.79 percent compounded semi-annually through October 1, 2020; principal due in annual installments of $591,000 and $664,000 from October 1, 2013 to October 1, 2020. The loan finances the County's portion of a joint beach renourishment project with the City of Destin and is payable from a special assessment levied for beach renourishment as well as Tourist Development taxes. 5,000,000 Total Governmental Activities Loans and Notes $ 5,000,000 Business-type Activities: REVENUE BONDS Airport $10,860,000 Airport Revenue Bonds, Series 2003, serial and term bonds with stated interest rates ranging from 2.4 percent to 6.0 percent compounded semi-annually through October 1, 2030; issued in denominations of $5,000 maturity value due in annual installments of $225,000 to $750,000 from October 1, 2003 through October 1, 2030. Net revenues derived from the operation of the Airport System and the Passenger Facility Charges imposed per enplaned passenger at the Northwest Florida Regional Airport are pledged for payment of the bonds. Proceeds from the bonds were used to finance a portion of the cost of the Terminal Development Program and to repay a commercial paper loan that provided partial temporary financing for the project. This issue is subject to federal arbitrage regulations. $8,845,000 $9,980,000 Taxable Airport Revenue Bonds, Series 2007, term bonds with stated interest rates ranging from 6.0 percent to 7.0 percent compounded semi-annually through October 1, 2030; issued in denominations of $5,000 maturity value due in annual installments of $220,000 to $830,000 from October 1, 2009 through October 1, 2030. Net revenue derived from the operation of the Airport System and the Customer Facility Charges imposed per rental car transaction day at the Northwest Florida Regional Airport are pledged for payment of the bonds. Proceeds from the bonds were used to finance a portion of the cost of the East Side Development Program. This issue is not subject to federal arbitrage regulations 9,015,000 65  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 10 – LONG-TERM DEBT - CONTINUED Primary Government - Continued Business-type Activities - Continued: REVENUE BONDS - CONTINUED Convention Center $13,450,000 Fourth Cent Tourist Development Tax Revenue Bonds, Series 2000, serial and term bonds with stated interest rates ranging from 4.6 percent to 5.75 percent compounded semi-annually through October 1, 2030; issued in