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

$0 $1,441 $10,000 $0 $406 $0 Lic&P Chgs Fines Misc 2013 2012 Proprietary Fund Operating Expense by Program Comparison $29,888 $29,616 $30,000 $23,469 $22,883 $25,000 $20,000 $15,000 $11,031 $11,581 $8,684 $8,526 $10,000 $4,037 $2,972 $5,000 $0 Gen Govt Pub Saf Phys Env Trans Econ Env 2013 2012 Budgetary Highlights A Budget to actual statement is provided for the General Fund, along with each of the other major special revenue funds as part of the basic financial statements. A budget column for both the original budget adopted for fiscal year 2013 as well as the final budget is presented. A comparison of the General Fund revenues original to the final operating budget shows an increase of $17,118. The main area increased was a $10,332 rise in intergovernmental revenue funded primarily from additional state and federal grants, especially related to housing assistance, mass transit and recovery efforts assistance in economic development. A significant portion of the increase in grants was not received or expended during the fiscal year making the variance large. The expenditures incurred during the year were generally below budget, except for the services primarily impacted by the need for citizen services, like physical and economic environment. The major difference between actual and final budget totals in expenditures were due to grants budgeted in accordance with executed documents for these general government, public safety, capital outlay for recovery assistance and transportation, especially related to mass transit. 12 Okaloosa County, Florida Management’s Discussion and Analysis Capital Asset and Debt Administration Capital Assets. Okaloosa County’s investment in capital assets for its governmental and business-type activities as of September 30, 2013 amounts to $482,000 (net of accumulated depreciation). This investment in capital assets includes land, buildings, roads, bridges and other improvements, machinery and equipment and park facilities. The decrease in Okaloosa County’s governmental activities investment in capital assets for the current fiscal year amounted to ($1,535) or (1.0) percent decrease, which was mainly due to increased accumulated depreciation related to new infrastructure improvements. The business-type activities capital assets amounted to $318,755 or an increase of $503 or 0.2 percent, mainly increasing in the area of infrastructure related to Water and Sewer and Airport rehabilitation expansion. The following schedule compares capital assets for the primary government for the current and previous fiscal years: Okaloosa County, Florida Capital Assets September 30, 2013 and 2012 Governmental Business-type Activities Activities Total 2013 2012 2013 2012 2013 2012 Land $ 11,558 $ 9,958 $ 11,318 $ 11,318 $ 22,876 $ 21,276 Buildings 72,332 70,862 88,401 88,224 160,733 159,086 Improvements other than buildings 32,840 32,500 308 309 33,148 32,809 Intangibles 2,933 2,877 867 887 3,800 3,764 Mach/Equipment 52,277 54,496 20,771 21,004 73,048 75,500 Const in Progress 2,083 2,884 7,415 16,596 9,498 19,480 Infrastructure 147,485 144,436 329,386 309,343 476,871 453,779 Art - - 99 99 99 99 Total Capital Assets 321,508 318,013 458,565 447,780 780,073 765,793 Accum Deprec (158,263) (153,233) (139,810) (129,528) (298,073) (282,761) Total $ 163,245 $ 164,780 $ 318,755 $ 318,252 $ 482,000 $ 483,032 Additional information on Okaloosa County’s capital assets can be found in notes to the financial statements (Note 5). Long-term debt. At the end of the current fiscal year, the primary government, Okaloosa County, had bonded and revolving loans long-term debt outstanding of $149,237. Of this amount, $34,192 comprises governmental activities bonds payable while the remaining 13 Okaloosa County, Florida Management’s Discussion and Analysis $87,514 in revenue bonds and $27,531 in revolving loans and a revenue note is secured solely by specified revenue sources in business-type activities. Okaloosa County, Florida Outstanding Debt September 30, 2013 and 2012 Govenmental Busines-type Activities Activities Total 2013 2012 2013 2012 2013 2012 Governmental Loans $ - $ - $ - $ - $ - $ - Revenue Bonds 29,192 29,905 87,514 93,044 116,706 122,949 Revolv & Comm Loan 5,000 - 27,531 28,621 32,531 28,621 Total $ 34,192 $ 29,905 $ 115,045 $ 121,665 $ 149,237 $ 151,570 Additional information on Okaloosa County’s long-term debt can be found in notes to the financial statements (Note 10). Okaloosa County, Florida, Debt Ratings at September 30, 2013 Type of Debt Issue: S&P Fitch/Moody’s 2009 Sales Tax Rev Bonds AA AA- Cap Imprv Rev Bonds, Ser 2011 Not rated Not rated Water and Sewer System Enterprise revenue bonds: 1985 Subordinated Not rated Not rated 2004 Series AAA Aaa 2006 Series AAA Aaa 2000 Tourist Develop Tax AAA Aa2 Revenue 2003 Airport Revenue Bonds A Not Rated Taxable Airport Rev Bond 2007 AA Not Rated Highest rating: AAA/Aaa Investment grade ratings: AAA/Aaa through BBB-/Baa- Lowest rating: C 14 Okaloosa County, Florida Management’s Discussion and Analysis Economic Factors Local, national, and international economic factors influence the County’s revenues in a variety of ways. Positive economic growth is correlated with increased revenues from property taxes, state sales taxes, fuel taxes, charges for services, state revenue sharing as well as state and federal grants, while negative economic growth generally has the opposite reaction. Economic growth may be measured by a variety of indicators such as employment growth, unemployment, new construction and assessed values, diversification of the property tax base, and Enterprise Fund revenue and net asset growth. The Florida Research and Economic Database reported that the number of employed Okaloosa County civilian residents increased from 93,597 in 2012 to 94,042 in 2013, an increase of approximately 0.5 percent. Increasing labor force coupled with somewhat improving economic times led to the County’s unemployment rate falling to 5.2 percent in 2013 compared to 6.1% for 2012. The County’s unemployment rate still remains extremely favorable compared to the state and national rates of 7.2 percent and 7.4 percent, respectively, for 2013. The assessed value of real property located in the County after exemptions shrank from $13.067 billion in 2012 to $12.805 billion, while the total assessed value of the County decreased from $13.781 billion to $13.566 billion in 2013. This represented a decrease of ($.215) billion or (1.6) percent in property valuation. Okaloosa County has a diversified property tax base. The ten largest property tax payers in the County represent approximately only 3.82 percent of the total ad valorem property tax levy. During 2013, total value of new residential construction in the County was valued at $121 million and total value of new non-residential construction was valued at $30 million for a total of just $151 million in new construction. The total construction figure for 2013 represented a $34 million increase from 2012. More information on economic factors is provided in the Statistical Section. Request for information This financial report is designed to provide the reader an overview of the County. Questions regarding any information provided in this report should be directed to: Finance Department 302 N Wilson Street, Suite 203 Crestview, Florida, 32536. 15 (THIS PAGE INTENTIONALLY LEFT BLANK) Basic Financial Statements  Exhibit I Okaloosa County, Florida STATEMENT OF NET POSITION September 30, 2013 Primary Government Governmental Business-type Total Activities Activities ASSETS Current Assets Cash and Cash Equivalents $ 29,243,043 $ 23,610,150 $ 52,853,193 Investments 25,084,962 9,317,723 34,402,685 Receivables, Net of Allowance for Uncollectibles 1,379,800 8,406,481 9,786,281 Internal Balances (187,841) 187,841 - Due from Other Governments