Okaloosa County BOCC — May 20, 2014 — reading text

Total Fund Balnces: Nonspendable: Prepaids $ 346,136 $ 21,380 $ 8,798 $ - $ 59,316 $ 435,630 Restricted for: Tourist Development BP Projects - - 596,590 - - 596,590 Tourist Development 1st Cent - - 8,514,141 - - 8,514,141 Tourist Development 2nd Cent - - 2,223,259 - - 2,223,259 Tourist Development 5th Cent - - 2,995,347 - - 2,995,347 Florida Boating Improvements - - - 589,960 - 589,960 Emergency and Disaster Relief - - - - 518,694 518,694 Housing and Urban Development - - - - 306,925 306,925 E-911 Operations - - - - 1,439,283 1,439,283 Radio Communications - - - - 81,219 81,219 Law Enforcement Trust Fund - - - - 21,866 21,866 Police Academy - - - - 48,233 48,233 Park Projects - - - - 4,770,768 4,770,768 Prisoner Benefit Fund - - - - 511,170 511,170 Judicial Innovations - - - - 515,452 515,452 Law Library - - - - 15,658 15,658 Teen Court - - - - 85,980 85,980 Drug Abuse Trust Fund - - - - 40,466 40,466 Domestic Violence Trust Fund - - - - 245,818 245,818 Family Mediation - - - - 5,255 5,255 Traffic Education - - - - 100,027 100,027 Public Records - - - - 2,548,667 2,548,667 Debt Service - - - - 463,354 463,354 Transportation Projects - - - - 11,039,403 11,039,403 Committed to: Planning Projects 26,808 - - - - 26,808 Park Development Projects - - - 71,660 - 71,660 Municipal Benefits Service Units - - - - 490,939 490,939 Assigned to: Capital Projects - - - 2,764,590 - 2,764,590 Transportation Projects - 171,518 - - - 171,518 Emergency and Disaster Relief - - - - 164,705 164,705 Health Department - - - - 3,168 3,168 Unassigned: Unassigned 6,595,043 - (8,798) - (59,316) 6,526,929 Total Fund Balances $ 6,967,987 $ 192,898 $ 14,329,337 $ 3,426,210 $ 23,417,050 $ 48,333,482 The proprietary fund balance sheet contains the line item “Net Assets Restricted for Other Purposes”. Following is a list of the detail balances contained in that line item for September 30, 2013. Fund Amount Purpose Airport Enterprise Fund $ 6,986,254 Passenger Facility Charges Program Airport Enterprise Fund 2,227,639 Customer Facility Charges Program Convention Center Enterprise Fund 7,673,873 Tourist Development Tax Total Net Assets Restricted for Other Purposes $ 16,887,766 71 Packet Pg. 129  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 13 – ENCUMBRANCES The amount of encumbrances outstanding as of September 30, 2013, is as follows: Amount Governmental Funds General Fund $ 22,678 County Transportation Trust 23,926 Tourist Development 1,825 Other Governmental 45,775 Total $ 94,204 Encumbrances at year end do not constitute expenditures or liabilities; therefore, they are not reflected in the financial statements. NOTE 14 - PENSION PLAN Florida Retirement System Plan Description Okaloosa County contributes to the Florida Retirement System (FRS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of Florida Division of Retirement, Department of Management Services. The FRS provides retirement, disability or death benefits to plan members or their designated beneficiaries. Florida Statutes Chapter 121 provides the authority under which benefit provisions are established. The provisions may only be amended by legislative action. Beginning in 2002, a defined contribution plan alternative to the existing defined benefit plan known as the Public Employee Optional Retirement Program or the FRS Investment Plan became available to FRS members. Members in either plan who have reached normal retirement age may retire and continue employment with the County for up to 60 months. During that period the member’s retirement benefits accumulate in the FRS Trust Fund increased by a cost-of-living adjustment each July and earned interest at an annual rate of 6.5%. The FRS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained on the State of Florida Department of Management Services website at www.dms.myflorida.com. FRS Plan Changes Effective July 1, 2011, the Florida Legislature passed Senate Bill 2100 that made substantive changes to the Florida Retirement System (FRS). The new Bill requires all FRS Investment and Pension Plan members (except those in Deferred Retirement Option Program, DROP) to now pay a 3% employee contribution, on a pretax basis, beginning on or after July 1, 2011. Cost of living adjustments (COLA) on or after July 1, 2011 are not automatic at 3%, but based on total years of service earned prior to July 1, 2011 to total years of service at retirement, multiplied by 3%. New members enrolling into FRS for the first time after July 1, 2011 will be subject to additional changes including 1) an increased vesting period from 6 years to 8 years, 2) a change calculation of benefits using Average Final Compensation (AFC) on the highest eight years of compensation as compared to highest five years. In addition, the normal retirement date for Regular, Senior Management Service, Elected Officers’, and Special Risk Administrative Support Classes was modified to be age 65, with 8 years of service or 33 years of service regardless of age. Normal retirement for Special Risk Class members now at age 60, with 8 years of service, or 30 years of special risk class service or age 57, with 30 years of combined special risk class service and military service. For those members participating in the DROP program, the Legislature reduced the annual interest rate used for benefits from 6.5% to 1.3%. The funding policy relative to the FRS plan is disclosed below. 72 Packet Pg. 130  Okaloosa County, Florida NOTES TO FINANCIAL STATEMENTS Fiscal Year Ended September 30, 2013 NOTE 14 - PENSION PLAN - CONTINUED Funding Policy Contribution requirements of the plan are established in Florida Statutes Chapter 121 and may only be amended by legislative action. Effective July 1, 2011, the Florida Legislature passed Senate Bill 2100 requiring all employee members to contribute 3% to the Plan. Formerly, only employers were required to contribute to the FRS Plan. The FRS funding policy now provides for monthly employer and employee contributions at actuarially determined rates that, expressed as percentages of annual covered payroll are adequate to accumulate sufficient assets to pay benefits when due. Level percentages of payroll employer contribution rates, established by state law, are determined using the entry-age actuarial funding method. If an unfunded actuarial liability re-emerges as a result of future plan benefit changes, assumption changes, or methodology changes, it is assumed any unfunded actuarial liability would be amortized over 30 years, using level dollar amounts. Except for gains reserved for rate stabilization, it is anticipated future actuarial gains and losses are amortized on a rolling 10% basis, as a level dollar amount. In July 2002, the Florida Legislature established a uniform contribution rate system for the FRS, which remained in effect with the passage of Senate Bill 2100. The uniform contribution system covers both the FRS Pension