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

Net Position (7,677) 2,457 8,432 11,121 755 13,578 Net Position October 1 175,481 173,024 258,382 247,261 433,863 420,285 Net Position September 30 $ 167,804 $ 175,481 $ 266,814 $ 258,382 $ 434,618 $ 433,863 Revenues decreased by ($9,147) or (7.5) percent in Governmental activities, due primarily to 8 Okaloosa County, Florida Management’s Discussion and Analysis the reduction of Operating and Capital grant activities related to housing assistance in General Government and mass transit in Transportation. Revenues in business-type activity decreased by ($4,998) or (6.8) percent from the prior year, mainly due to reduced capital grants and contributions from the prior year associated with the Airport. Expenses increased by $2,726 or 2.3 percent in Governmental activities, due primarily to increased Culture/Recreation activity for Tourist Development activity related to contributions to the City of Destin for beach renourishment. Expenses in business-type expenses increased slightly $417 or 0.7 percent due mainly to increased costs related to expanded activities for Emergency Medical Services operations. Revenues in 2013 decreased from 2012 and expenses increased for the year which caused the net position to increase slightly by 0.2 percent, from $433,863 in 2012 to $434,618 in 2013. Governmental activities The focus of Okaloosa County governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at fiscal year end. As of September 30, 2013, the County governmental funds reported combined fund balances of $48,333, a decrease of ($1,611) over the prior year balances, due mainly to the use of one- time balances in the General Fund for much needed capital, operating needs and certain unfunded mandates utilized in order to fund those needs in the annual budget along with the continued use of certain transportation funds for much needed capital projects. The General Fund is the chief operating fund of the County. At September 30, 2013, total fund balance in the general fund was $6,968 of which $6,595 was unassigned. The general fund expenditures for the fiscal year exceeded revenues by $3,478, due to the continued decline in ad valorem tax revenue and the one-time sale of property in the prior year. The Net change in Fund Balance for the General Fund for fiscal year 2013 amounted to a decrease of ($1,455), while the prior year showed an increase of $4,487. The decrease in fiscal year 2013 was mainly due to the slight reduction in recurring revenue and the slight uptick in most all of the expenditure functional categories spending pattern from the prior year. The County Transportation Trust Fund is a special revenue fund that is used to account for revenues and expenditures related to transportation expenditures in the County. The County Transportation Trust Fund balance decreased ($899) from the prior year. The decrease in fund balance occurred primarily because of the decline in local and state shared revenue support along with an increase in transportation expenditures for reactionary capital items. The Tourist Development Trust Fund is a special revenue fund that is used to account for the revenues and expenditures of a portion of the Tourist Development Tax that is collected on short-term rentals in Okaloosa County. The Tourist Development Trust Fund balance increased over the prior year by $1,132. The increase in fund balance is primarily due to borrowing funds for beach restoration along with a slight uptick in tax revenue and marketing and advertising activity somewhat returning to normal trends and patterns. The Capital Outlay Construction Fund is a capital fund that contains all general government related capital projects related to government facilities, public safety facilities and culture and recreation facilities. Capital Outlay’s fund balance decreased by ($273). The fund had a slight 9  Okaloosa County, Florida Management’s Discussion and Analysis decrease due to the recurring revenue for the fund diminishing to very little although the project activity for the year decreased after many years of increased activity. The following is a chart of all Governmental Fund Balances for the fiscal years 2012 and 2013. Governmental Fund Balance Comparison $30,000 $23,417 $23,533 $25,000 $20,000 $14,329$13,197 $15,000 $6,968 $8,423 $10,000 $3,426 $3,699 $5,000 $193 $1,092 $0 General CTTF Tourist Dev Capital Outlay Other 2013 2012 $58,010 $58,759 Governmental Revenues By Source Comparison $60,000 $50,000 $40,000 $34,752 $30,863 $30,000 $18,655 $18,067 $20,000 $10,000 $6,602 $1,335 $3,308 $816 $477 $465 $0 Taxes L&P Intgovt Chgs Fines Misc 2013 2012 Governmental Expenditures By Function Comparison $44,072 $43,331 $45,000 $40,000 $35,000 $28,153 $30,000 $26,836 $25,000 $20,000 $15,000 $11,660 $12,404 $11,418 $10,304 $10,000 $7,159 $6,795 $5,428 $4,942 $5,077 $5,331 $4,657 $4,186 $4,021 $5,000 $2,381 $1,052 $1,012 $0 Gen Govt Pub Saf Phys Env Trans Econ Env Hum Svc Cult Rec Crt Relat Cap Outlay Debt 2013 2012 Proprietary Activities Okaloosa County’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail, and on a fund basis for the enterprise funds and internal service funds. 10 Okaloosa County, Florida Management’s Discussion and Analysis Enterprise Funds at September 30, 2013, total net position amounted to $266,814 for enterprise funds as compared to $258,382 at September 30, 2012. Net Position balances are primarily the result of operations and capital contributions in the Water & Sewer and Airport Enterprise funds. Business-type activities increased the County’s total net position by $8,432. Major components of this increase are as follows: The Water and Sewer Fund increased its net position by $711. Operating income was $4,958 during the year which was greater than last year. Operating revenues increased during the year, mainly related to the increased partnerships developed with the military and other governmental agencies, while operating expenses, excluding depreciation declined. The Airport Fund increased its net position by $3,580. The Airport again had a significant amount of capital contributions from grant and financing capital activities, while operating income decreased slightly due mainly to operating revenues increasing from the prior year and operating expenses decreasing significantly. The Convention Center Fund increased its net position by $2,677. Convention Center Operating Income increased due to slight increase in operating revenues and tourist development tax collections increased over the prior year producing net income. The net operating income of the enterprise funds for fiscal years 2013 and 2012, is as follows: Enterprise Net Operating Income (Loss) 2013 2012 Water and Sewer $4,598 $3,936 Airport (1,613) (2,372) Solid Waste 481 618 Inspections 41 (133) Emergency Medical Services (596) (955) Convention Center (2,167) (3,282) $744 ($2,188) 11  Okaloosa County, Florida Management’s Discussion and Analysis Proprietary Fund Operating Revenue by Source Comparison $73,324 $70,627 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $1,431 $1,278