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

The Okaloosa County Board of County Commissioners entered into an inter-local agreement with six (6) municipalities located within Okaloosa County, Florida to provide for operation of a countywide public library system. The governing body of the cooperative is the Okaloosa County Public Library Cooperative Board made up of one appointee from each municipality and the County. Capital assets remain the property of the participating municipalities. Under the agreement, the County agreed to provide annual funding to the cooperative. The current agreement was effective October 1, 2012 and ended on December 31, 2013and is subject to renewal or revision December 2013. The Okaloosa County Board of County Commissioners’ contribution to the library cooperative for the year ended September 30, 2013 was $513,600. In addition, approximately $81,274 of allocable indirect costs was charged to the fund. These charges were treated as an in-kind contribution by the County during the year ended September 30, 2013. The future commitment to the library cooperative in 2014 is $513,600. 86  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 19 – NON-RECURRING TRANSACIONS Tourist Development Special Revenue Fund In 2013, the Board contributed $6,395,000 to the City of Destin for the beach restoration project. The funds contributed were provided by the Tourist Development Funds’ Special Assessment and tourist development taxes. The expenditure is included as part of culture and recreation costs in the Tourist Development Special Revenue fund. The Board recovered $598,590 of illegally used British Petroleum monies by its former Tourist Development Director during the year ended September 30, 2013. Other physical assets such as furniture and motorcycles held by Okaloosa County are planned to be sold at auction in 2014. British Petroleum has confirmed the Company does not want a refund of any illegal purchases made using oil spill dollars and requested they be used for their original purpose of area promotion. The remaining unspent British Petroleum monies of $589,960 are restricted in the Tourist Development Fund at September 30, 2013 and are projected to be spent in 2014. Water and Sewer Enterprise Fund In accordance with an interlocal agreement with the City of Fort Walton Beach, Florida, the Board contributed 50% of the common costs for the replacement of a thirty inch pre-stressed concrete cylinder pressure force main. The capital contribution of $1,497,480 is reported as contribution to other government in the water and sewer fund. The asset will be owned and operated by the City of Fort Walton Beach, Florida for twenty years and then possession of the asset will transfer to Okaloosa County. NOTE 20 – SUBSEQUENT EVENTS 7th Special Forces Group Fiber Optic Contract October 2013 Okaloosa County entered into an agreement with 96th Communications Squadron from Eglin Air Force Base to provide a 36 strand single mode fiber path between Building 4545 at the 7th Special Forces Group Airborne compound on Duke Field to Building 44 on Eglin Air Force Base. The agreement will result in a one-time fee to the County of $1,343,135. Airport Refunding Revenue Bond Issue Okaloosa County authorized refinancing of the County’s Series 2003 Airport Revenue Bonds and repayment of $1.2 million of the existing $2 million loan with the Florida Local Government Finance Commission through a negotiated sale with Compass Mortgage Corporation. In January 2014, the County issued a Airport Revenue Refunding Bond, Series 2014 for $8,920,000 with average coupon rate of 3.15%. The debt will be repaid with annual installments ranging from $360,000 to $740,000 from October 1, 2014 to October 1, 2028. Renovation of Shalimar Annex and Crestview Courthouse In 2013, Okaloosa County began Phase I of the renovations to the Shalimar Annex. Phase I of the two phase project will cover design, build and architectural services. The County reached a $1,600,000 agreement regarding the reverter clause at the Annex with the first installment beginning in September 2014. The liability for the settlement agreement has been recorded in the Self Insurance Fund as of September, 30, 2013. In November the contractor was given direction to move forward with Phase II of the design process which includes refining the space planning data, developing the conceptual drawings, 87  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 20 – SUBSEQUENT EVENTS Renovation of Shalimar Annex and Crestview Courthouse - Continued and developing 100% construction drawings. At March, 2014, the project design was near 35% and demolition of the current structure is slated to being May, 2014. As part of this project certain space in the Annex used by the Okaloosa County Sheriff’s Office is required to be vacated. Improvements/renovations will be made to the Sheriff’s Administration Building to allow consolidation due to the space lost. Okaloosa County selected a design-build firm in March, 2014 to oversee the renovations of the Crestview Courthouse. The County will be funding these projects with one debt issuance not to exceed $20 million. Merger of Convention Center Enterprise Fund into Tourist Development Special Revenue Fund Effective October 2013, Okaloosa County Convention Center paid the Tourist Development Tax 4th Cent Bonds, Series 2000 remaining balance of $155,000. With payment of the debt, the Convention Center no longer qualifies as an Enterprise fund and was collapsed into the Tourist Development Special Revenue Fund for reporting purposes. Health Insurance Reimbursement In April, 2014 the BCC received approximately $3,709,000 from Blue Cross/Blue Shield of Florida for refunds relating to its health insurance program for the period of October 1, 2011 to September 30, 2013. The refunds are based on an agreement with the Company that provides a look back comparison of earned premium to incurred claims. The County did not estimate a refund based on the volatility and uncertainty associated with predicting health insurance claims incurred. The refund will be recorded in the self- insurance fund during FY14. 88 (THIS PAGE INTENTIONALLY LEFT BLANK) Required Supplementary Information  Okaloosa County, Florida Post Employment Benefits Plans Schedule of Funding Progress September 30, 2013 Board of County Commissioners Unfunded UAAL as a Actuarial Actuarial Actuarial Actuarial Percentage of Valuation Value Liabilities Liabilities Funded Covered Covered Date of Assets (AAL)(1) (UAAL)(2) Ratio Payroll (3) Payroll (3) October 1, 2010 - $ 3,587,969 $ 3,487,969 0.0% $ 31,547,282 11.4% October 1, 2011 - $ 3,788,681 $ 3,788,681 0.0% $ 31,617,251 12.0% October 1, 2012 - $ 3,780,041 $ 3,780,041 0.0% $ 31,108,775 12.2% (1) Actuarial liability determined under the unit credit cost method. (2) Actuarial liability less actuarial value of assets, if any. (3) Medical benefits are not tied to the size of payroll and advised costs as a percentage of payroll does not raise GASB 45 costs. Approach revised in 2011. Sheriff Unfunded UAAL as a Actuarial Actuarial Percentage of Actuarial Actuarial Liabilities Liabilities Funded Covered Covered Valuation Value (AAL) (UAAL)(3) Ratio Payroll Payroll Date of Assets (a) (b) (b-a) (a/b) (c) ([b-a]/c) October 1, 2011 - $ 3,341,450 $ 3,341,450 0.0% $ 16,813,193 19.90% October 1, 2012 - $ 3,584,471 $ 3,584,471 0.0% $ 17,517,844 20.50% October 1, 2013 - $ 3,827,827 $ 3,827,827 0.0% $ 16,531,416 23.20% (3) Actuarial liability determined under the individual entry age normal cost method. 89 (THIS PAGE INTENTIONALLY LEFT BLANK)  Nonmajor Governmental Funds SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Board of County Commissioners Natural Disaster Fund This fund is used to account for disaster funding and expenditures not considered normal recurring operating activity of the County. Local Housing Assistance Trust Fund This fund is used to account for funds received from the State Housing Initiatives Partnership Program for implementing and administrating the local housing assistance plan. E-911 Operations Fund This fund is used to account for E911 revenues collected exclusively for costs associated with developing and maintaining E911 systems and networks. Radio Communications Fund This fund is used to account for surcharges collected to fund the acquisition of equipment, software, and engineering, administrative, and maintenance services to construct, operate, and maintain a statewide radio system. Law Enforcement Trust Fund This fund is used to account for the revenues received as a result of criminal or forfeiture proceedings and used for school resource officer, crime prevention, safe neighborhood, drug abuse education and preventions programs, or for other law enforcement purposes. Police Academy Fund This fund is used to account for an additional $2 assessed by the County for criminal justice education degree programs and training courses. County Public Health Fund This fund is used to account for funds appropriated by Okaloosa County for or on behalf of the county public health unit, such as capital projects costs. Municipal Services Benefit Units