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

compares not only actual results to budget but also the original adopted budget to final budget. These budgetary comparisons for the major governmental funds are presented as part of the basic financial statements. Non- major governmental fund budget comparisons are presented as supplemental financial data. Proprietary Fund Financial Statements Proprietary fund financial statements, like government-wide financial statements, are prepared on the full accrual basis. Proprietary funds record both operating and non-operating revenues and expenses. Operating revenues are those that are obtained from the operations of the proprietary fund. The County reports the Water and Sewer, Airport, Solid Waste and Convention Center as major funds in the proprietary fund financial statements. The Solid Waste and Convention Center funds have been presented as major proprietary funds at management’s discretion. These enterprise funds are used to present the same functions that are presented in the government-wide financial statements. The other enterprise funds are grouped together and 5 Okaloosa County, Florida Management’s Discussion and Analysis reported in a separate column entitled, “Other Enterprise Funds”. The internal service funds are combined into a single column on the proprietary fund financial statements. Individual fund data is presented in combining statements as supplemental financial data. The internal service funds are used to account for risk management, health, including other post employment benefits for retirees, dental and liability insurance, fleet management services and funding of short-term compensated absence liability on a cost reimbursement basis. Fiduciary Fund Financial Statement Data shown on the fiduciary fund financial statement is not included in the government-wide financial statements because the resources of those funds are not available to support the County’s programs. The only type of fiduciary funds the County maintains, agency funds, are used to account for assets held by the County as an agent for individuals or other governments. Notes to the financial statements The notes to the financial statements provide additional information that is useful for a more complete understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning Okaloosa County’s funding progress related to post employment benefits. This report also presents combining statements for the non-major governmental and proprietary funds and agency funds, as well as individual fund budget and actual comparison schedules for non-major governmental funds. Government-wide Financial Analysis Over time, net position may serve as the most useful indicator of a government’s financial position. At September 30, 2013, the County’s total net position or total assets less liabilities, was $434,618. A significant portion of the County’s net position, 80.4 percent, is identified as an investment in capital assets (such as land, buildings, equipment, infrastructure), less related debt outstanding that was used to acquire those assets. Since the County uses capital assets to provide services to its residents, the net position represented by “investment in capital assets, net of related debt” are not available for future spending. In fact, the payment of maintenance and debt service costs on those capital assets will themselves require governmental resources. The invested in capital assets, net of related debt balance of $349,249 decreased ($1,112) or (0.3) percent, in comparison to the prior year. Another portion of the County’s net position is restricted net assets which represent assets that are subject to constraints such as by debt covenants, grantors, laws or regulations. The 6 Okaloosa County, Florida Management’s Discussion and Analysis restricted net position balance of $59,718 (13.7 percent of total net position) increased $363 or 0.6 percent, in comparison to prior year, mainly due to decreased debt restrictions and increased Economic Environment and increased Culture/Recreation restrictions for Tourist Development and Convention Center activities. Unrestricted net position is net position that is available to meet the County’s ongoing obligations to residents, creditors, and enterprise fund customers. The unrestricted net position balance of $25,651 (5.9 percent of total net position) increased $1,504, or 6.2 percent, in comparison to prior year although governmental unrestricted balance decreased due to increased actuarial claim liabilities in the Self Insurance Internal Service Fund and more restrictions, business-type activities increased due to increased activity and reduced liabilities, especially related to debt. The deficit in unrestricted net position in the Self Insurance Fund will be reduced significantly by approximately $3.7 million of insurance refunds received in Fiscal Year 2014 as disclosed in Note 20 of the financial statements. As shown on the following chart, the County reported increased balances at September 30, 2013. The components of total Net Position increased mainly due to the significant improvement in economic activity in the business-type function related to Convention Center early repayment of debt and overall general improvement of all business-type activities. The following is a condensed summary of net position for the primary government for fiscal years 2013 and 2012. Governmental Business-type Total 2013 2012 2013 2012 2013 2012 Current and Other Assets $ 61,348 $ 64,911 $ 77,060 $ 78,336 $ 138,408 $ 143,247 Captial Assets 163,245 164,780 318,754 318,252 481,999 483,032 Total Assets 224,593 229,691 395,814 396,588 620,407 626,279 Current and Other Liabilities 15,200 15,669 15,929 18,413 31,129 34,082 Long-term Liabilities 41,589 38,541 113,071 119,793 154,660 158,334 Total Liabilities 56,789 54,210 129,000 138,206 185,789 192,416 Net Position: Investment in Capital Assets, Net of Related Debt 134,735 135,627 214,514 214,734 349,249 350,361 Restricted for Debt Service 463 994 9,496 10,262 9,959 11,256 Grants 630 587 - - 630 587 Capital Projects 590 569 - - 590 569 Public Safety 2,207 2,315 - - 2,207 2,315 Transportation 11,039 11,202 9,214 9,007 20,253 20,209 Eco Environment 10,182 13,804 7,674 2,766 17,856 16,570 Culture Recreation 4,771 4,675 - - 4,771 4,675 Court-Related 3,452 3,174 - - 3,452 3,174 Unrestricted (265) 2,534 25,916 21,613 25,651 24,147 Total Net Position $ 167,804 $ 175,481 $ 266,814 $ 258,382 $ 434,618 $ 433,863 7 Okaloosa County, Florida Management’s Discussion and Analysis The following schedule compares the revenues and expenses for the primary government for the current and previous fiscal years: Okaloosa County, Florida Summary of Revenues and Expenses As September 30, 2013 and 2012 Governmental Business-type Activities Activities Total 2013 2012 2013 2012 2013 2012 Revenues: Program Revenues: Charges for Services $ 25,468 $ 25,696 $ 55,954 $ 54,211 $ 81,422 $ 79,907 Operating Grants and Contributions 5,845 8,354 528 338 6,373 8,692 Capital Grants and Contributions 1,249 6,240 4,720 10,292 5,969 16,532 General Revenues: - - Taxes 58,010 58,759 6,709 6,780 64,719 65,539 State Shared Revenue 17,801 17,041 - - 17,801 17,041 Grant and Contributions not Restricted Specific Programs 124 360 - - 124 360 Other 4,390 5,584 682 1,970 5,072 7,554 Total Revenues 112,887 122,034 68,593 73,591 181,480 195,625 Expenses: Program Activities: General Government 28,715 30,552 - - 28,715 30,552 Public Safety 45,296 46,360 - - 45,296 46,360 Physical Environment 1,502 933 - - 1,502 933 Transportation 14,632 16,245 - - 14,632 16,245 Economic Environment 4,983 5,563 - - 4,983 5,563 Human Services 4,500 4,352 - - 4,500 4,352 Culture and Recreation 11,997 5,902 - - 11,997 5,902 Court-Related 7,589 6,634 - - 7,589 6,634 Interest and Fiscal Charges 1,745 1,692 - - 1,745 1,692 Business-type Activities: Water and Sewer - - 27,657 26,149 27,657 26,149 Airport - - 12,450 12,928 12,450 12,928 Solid Waste - - 7,684 7,438 7,684 7,438 Inspections - - 1,588 1,600 1,588 1,600 Emergency Medical - - 7,234 6,933 7,234 6,933 Convention Center - - 3,153 4,301 3,153 4,301 Total Expenses 120,959 118,233 59,766 59,349 180,725 177,582 Inc in Net Position Before Trf (8,072) 3,801 8,827 14,242 755 18,043 Special Item - (2,007) - (2,458) - (4,465) Transfers 395 663 (395) (663) - - Inc/(Dec) in