COMPREHENSIVE ANNUAL FINANCIAL REPORT

Transcription

1 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT SARASOTA COUNTY, FLORIDA YEAR ENDED SEPTEMBER 30, 2015

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3 COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2015 SARASOTA COUNTY SARASOTA, FLORIDA BOARD OF COUNTY COMMISSIONERS ALAN MAIO CAROLYN MASON PAUL CARAGIULO CHRISTINE ROBINSON CHARLES HINES COUNTY ADMINISTRATOR THOMAS A. HARMER CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER CHIEF FINANCIAL OFFICER KAREN E. RUSHING DIRECTOR OF FINANCE NICOLE E. JOVANOVSKI, CPA Prepared by the Office of the Clerk of Circuit Court and County Comptroller 1

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5 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS INTRODUCTORY SECTION: Page Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting for Sarasota County Government Organizational Chart FINANCIAL SECTION: Independent Auditors Report Management s Discussion and Analysis Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Funds: Balance Sheet Governmental Funds Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Emergency Services Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual - Capital Revenue Programs Special Revenue Fund Proprietary Funds: Statement of Net Position Proprietary Funds Reconciliation of the Proprietary Funds Statement of Net Position to the Statement of Net Position Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds Reconciliation of the Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position to the Statement of Activities Statement of Cash Flows Proprietary Funds Fiduciary Funds: Statement of Fiduciary Net Position Fiduciary Funds Statement of Changes in Fiduciary Net Position Fiduciary Funds Notes to the Financial Statements: 1) Summary of Significant Accounting Policies ) Stewardship, Compliance, and Accountability ) Cash, and Investments ) Receivables ) Interfund Receivables, Payables, and Transfers ) Capital Assets ) Long-Term Debt ) Lease Obligations

6 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS 9) Landfill Closure and Postclosure Care Cost ) Risk Management ) Employee Retirement Plans ) Deferred Compensation Plan ) Post Employment Benefits (Other Than Pensions) ) Change in Accounting Principle ) Contingencies ) Deficit Fund Balances Required Supplementary Information: OPEB Schedule of Funding Progress OPEB Schedule of Employer Contributions Schedule of Proportionate Share of Net Pension Liability Schedule of Contributions Combining and Individual Fund Statements and Other Supplemental Information: Combining Balance Sheet Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds Special Revenue Funds: Subcombining Balance Sheet Nonmajor Special Revenue Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Nonmajor Special Revenue Funds: Transportation Special Revenue Fund Building and Zoning Special Revenue Fund Tourist Development Special Revenue Fund Franchise Utilities Special Revenue Fund Mosquito Control Special Revenue Fund Grants in Aid Special Revenue Fund Federal, State & Local Grants Special Revenue Fund Environmental Resources Special Revenue Fund Gifts, Donations and Recreation Special Revenue Fund Improvement Districts Special Revenue Fund Court Improvements Special Revenue Fund Street Lighting Districts Special Revenue Fund Arts in Public Places Special Revenue Fund Access Sarasota Special Revenue Fund Economic Development Special Revenue Fund Moving Violation Surcharge Special Revenue Fund Law Enforcement Special Revenue Fund Sheriff s Special Revenue Fund Clerk s Special Revenue Fund Debt Service Funds: Subcombining Balance Sheet Nonmajor Debt Service Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Debt Service Funds

7 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Nonmajor Debt Service Funds: Communications Services Tax Series 2005A Fund Limited Ad Valorem Tax Series 2005 Fund Communications Services Tax Series 2005B Fund Five-Cent Local Option Fuel Tax Series 2005 Fund Communications Services Tax Series 2006 Fund Limited Ad Valorem Tax Series 2008 Fund Infrastructure Sales Surtax Revenue Series 2008A Fund Infrastructure Sales Surtax Revenue Series 2008B Fund Bank Term Loans Fund Commercial Paper Debt Service Fund Capital Improvement Series 2010 Fund Communications Service Tax Series 2010 Fund Second Guaranteed Entitlement Series 2013 Fund Infrastructure Sales Surtax Revenue Series 2014A, Series 2015 Fund Capital Projects Funds: Subcombining Balance Sheet Nonmajor Capital Projects Funds Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Capital Projects Funds Permanent Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Library Endowments Internal Service Funds: Combining Statement of Net Position Internal Service Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds Combining Statement of Cash Flows Internal Service Funds Fiduciary Funds: Combining Statement of Fiduciary Net Position Agency Funds Combining Statement of Changes in Fiduciary Net Position Agency Funds Englewood Community Redevelopment Agency: Balance Sheet Englewood Community Redevelopment Agency Statement of Revenues, Expenditures and Changes in Fund Balances - Englewood Community Redevelopment Agency Notes: 1) Summary of Significant Accounting Policies ) Interfund Receivables, Payables, and Transfers Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill

8 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS STATISTICAL SECTION: Financial Trends: Net Position by Component Changes in Net Position Fund Balance, Governmental Funds Changes in Fund Balances, Governmental Funds Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Property Taxpayers Property Tax Levies and Collections Property Value, Construction and Bank Deposits Special Assessment Billings and Collections Coverage of Guaranteed Entitlement for All Counties by Revenue Sharing Trust Fund Receipts for All Counties Coverage of Guaranteed Entitlement for Sarasota County by Revenue Sharing Trust Fund Receipts for Sarasota County State of Florida and Sarasota County Historical Sales Tax Collections State of Florida and Sarasota County Historical Local Government Half-Cent Sales Tax Sarasota County and Municipalities Percent of Total Half-Cent Sales Tax Receipts Debt Capacity: Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Direct, Overlapping and Underlying Governmental Activities Debt Legal Debt Margin Information Pledged-Revenue Coverage Coverage of Maximum Annual Debt Service Requirement by Local Government Half-Cent Sales Tax Revenues Demographic and Economic Information: Demographic and Economic Statistics Principal Employers Top Ten Manufacturers Miscellaneous Statistics Operating Information: Full-Time Equivalent County Government Employees by Function/Program Operating Indicators by Function/Program Capital Assets Statistics by Function/Program OTHER SUPPLEMENTAL SCHEDULES: Summary Schedule of Revenues, Expenditures and Changes in Fund Balances General Fund Assessed Value of Taxable Property Pro-forma Debt Service Coverage Limited Ad Valorem Tax Bonds, Series 2005, Series 2008, Series 2010 and Series Commercial Paper Specific Borrowings - General Government Communication Services Tax Revenue Bonds, Series 2006, 2010, and Communication Services Tax Revenue Refunding Note Series 2014 and 2015 Continuing Disclosure Infrastructure Sales Surtax Revenue Bonds Series 2008A, 2008B, 2014 and 2015 Continuing Disclosure Second Guaranteed Entitlement Revenue Bonds Series

9 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS Utility Bond Issue Continuing Disclosure General Government Revenue Bonds Description: Revenue Bond Issues Enterprise Funds Revenue Bonds Description: Utility System Revenue Refunding Bonds, Series 2005A Utility System Revenue Bonds, Series Utility System Revenue Bonds, Series Utility System Revenue Refunding Bonds, Series 2011A Utility System Revenue Refunding Bonds, Series 2011B Utility System Revenue Refunding Bonds, Series General Government Revenue Bonds Debt Service Requirements to Maturity: Summary of Debt Service Revenue Bonds Limited Ad Valorem Tax Bonds, Series Communications Services Tax Revenue Bonds, Series Limited Ad Valorem Tax Bonds, Series Infrastructure Sales Surtax Revenue Bonds, Series 2008A Infrastructure Sales Surtax Revenue Bonds, Series 2008B Communication Services Tax Revenue Bonds, Series Capital Improvement Revenue Bonds, Series 2010A Capital Improvement Revenue Bonds, Series 2010B Second Guaranteed Entitlement Revenue Bonds, Series Infrastructure sales surtax Revenue Refunding Bonds Series Infrastructure Sales Surtax Revenue Refunding Bonds Series Enterprise Funds Revenue Bonds Debt Service Requirements to Maturity: Utility System Revenue Bonds, Series Utility System Revenue Bonds, Series Utility System Revenue Refunding Bonds, Series 2011A Utility System Revenue Refunding Bonds, Series 2011B Utility System Revenue Refunding Bonds, Series General Government Bank Term Loans Description: Bank Term Loans Enterprise Funds Bank Term Loans Description: Utility System Revenue Refunding Note, Series Subordinate Utility System Revenue Refunding Note, Series Utility System Revenue Refunding Note, Series Solid Waste System Revenue Refunding Note, Series General Government Bank Term Loans Debt Service Requirements to Maturity: Summary of Debt Service Bank Term Loans Limited Ad Valorem Tax Refunding Bond, Series Capital Improvement Revenue Refunding Note, Series First Guaranteed Entitlement Revenue Refunding Note, Series Bank Term Revenue Note, Series 2013A Bank Term Revenue Note, Series 2014A Communication Services Tax Revenue Refunding Note, Series Five-Cent Local Option Fuel Tax Revenue Refunding Note, Series Bank Term Revenue Note, Series 2014B Limited Ad Valorem Tax Refunding Bond, Series Communications Services Tax Revenue Refunding Note, Series

10 SARASOTA COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2015 TABLE OF CONTENTS Enterprise Funds Bank Term Loans Debt Service Requirements to Maturity: Utility System Revenue Refunding Note, Series Subordinate Utility System Revenue Refunding Note, Series Utility System Revenue Refunding Note, Series Solid Waste System Revenue Refunding Note, Series SINGLE AUDIT GRANTS COMPLIANCE SECTION: Sarasota County Board of County Commissioners: Independent Auditors Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Governmental Auditing Standards Independent Auditors Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance With OMB Circular A-133 and Chapter Rules of the Auditor General of the State of Florida Schedule of Expenditures of Federal Awards and State Financial Assistance Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Summary Schedule of Prior Audit Findings and Corrective Action Plan

11 INTRODUCTORY SECTION 9

12 KAREN E. RUSHING Clerk of the Circuit Court and County Comptroller 2000 Main Street P.O. Box 3079 Sarasota, FL Phone: May 4, 2016 To the Citizens of Sarasota County, Florida: We are pleased to present to you, the citizens of Sarasota County, Florida, the Comprehensive Annual Financial Report for the fiscal year ended September 30, Chapter of the Florida Statutes requires that each local government entity that is required to provide for an audit in accordance with Chapter must submit an annual financial report with the audit report no later than nine months after the end of the fiscal year. This report has been prepared to meet this requirement. The Clerk of the Circuit Court and County Comptroller, through the Finance Department, assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that has been established for this purpose. Because the cost of internal control should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Chapter of the Florida Statutes requires an annual independent certified public accountants financial audit of counties in the State. This requirement has been met for the fiscal year ended September 30, In addition to meeting the requirements set forth in the state statutes, the audit was designed to meet the requirements of the Government Auditing Standards, the U.S. Office of Management and Budget Circular A- 133, Audits of States, Local Governments, and Non-Profit Organizations ( single audit ), and the Rules of the Auditor General, Chapter CliftonLarsonAllen LLP and Shinn & Company LLC, Certified Public Accountants, have issued an unmodified ( clean ) opinion on the Sarasota County, Florida financial statements for the fiscal year ended September 30, The independent auditors report is located at the front of the Financial Section of this report. The independent auditors' reports related specifically to Government Auditing Standards and the single audit are included in the Single Audit Grants Compliance Section. Management s Discussion and Analysis (MD&A) can be found immediately following the independent auditors report. The MD&A provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the Government Sarasota County is a political subdivision of the State of Florida and was formally incorporated in Located on the southwest coast of Florida, the County is a 725 square mile area with outstanding natural beauty. The resident population served is approximately 392,090. The resident population includes Unincorporated County (pop. 251,065) and four municipalities: the Cities of Sarasota (pop. 52,905), Venice (pop. 21,418), North Port (pop. 62,235) and the Town of Longboat Key (pop. 4,467). Sarasota County is empowered to levy a property tax on both real and personal property located within its boundaries. In 1971, the citizens of Sarasota County adopted a Home Rule Charter in accordance with the Constitution and Statutes of the State of Florida. The Home Rule Charter sets forth a commission form of government under which a five member Board of County Commissioners is elected to serve as the executive and legislative body for the County. 10

13 The County Commissioners appoint both a County Administrator and a County Attorney. The County Administrator s duties include the administration of directives and policies of the Commissioners, responsibility for the operation of all business centers and provision of services under the purview of the Commissioners. The County Attorney represents the officials and employees of Sarasota County in all civil and legal matters relating to the discharge of their official duties. The citizens of the County also elect a Sheriff, a Clerk of the Circuit Court and County Comptroller, a Supervisor of Elections, a Tax Collector and a Property Appraiser, whose responsibilities and duties are set forth in the Home Rule Charter. Sarasota County offers many services to its citizens including fire and police protection; emergency medical services; construction and maintenance of street and traffic systems, highways, bridges and other infrastructure; preservation and maintenance of beaches, parks and environmentally sensitive lands; recreational facilities, programs and cultural activities; comprehensive planning and community development; community information and education programs; health and human services; water and wastewater utilities; solid waste disposal facilities; stormwater utility facilities; and public transportation activities. The financial statements of Sarasota County include all governmental functions and operations for which the County is financially accountable. The financial statements include the General Fund and all of the elected officials referred to above, since the County Commissioners are responsible for reviewing and incorporating the annual operating budget for each elected official into the County s budget. Separate financial statements may be obtained for these constitutional officers through the Clerk of the Circuit Court and County Comptroller s Office. The financial statements also include various other special taxing districts which are defined in Note 1, Section A to the financial statements. The Clerk of the Circuit Court and County Comptroller publishes two supplementary documents each fiscal year to provide citizens additional information relating to financial matters of the County. The Consolidated Major Revenue and Debt Report provides a summary and description of the County s primary revenue sources along with information related to the extent, nature and purpose of the County s indebtedness, including arbitrage. In addition, the IMPACT Report, also called the Popular Annual Financial Report (PAFR), is designed to provide the citizens of the County with a better understanding of where County revenues came from and how those dollars were managed and spent. These publications may be obtained from the Clerk of the Circuit Court and County Comptroller s office. Sarasota County follows the laws of the State of Florida regarding the control, adoption and amendment of the budget during each fiscal year. Formal budgetary integration is employed as a management control device during the year for all fund types. The County Budget Officer must submit a tentative budget to the County Commissioners prior to July 15th of each year for the following fiscal year. The budget may be amended up until 60 days after the end of the fiscal year. Budgets for all funds, except for capital project funds and proprietary funds, are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP). Capital project funds are prepared for the project life rather than for the current fiscal year. The financial plan may be obtained from the Office of Financial Management website ( Local economy The local economy has been steadily improving over the past few years. Taxable property values increased 7.1% in fiscal year Unemployment averaged 5.2% during fiscal year 2015 which was well below its peak of 12.3% during fiscal year Gross sales in Sarasota County have also picked up, leading to revenue increases from sales taxes and tourist development taxes. Over a million tourists visit Sarasota County each year and it is the winter home for thousands of out-of-town residents. Local beach communities have earned an international reputation as a family vacation destination. The art community thrives with world class facilities including the Van Wezel Performing Arts Center. Sports tourism is strong with venues such as a spring training baseball stadium and a world class rowing park. The area is service industry oriented and the largest job sectors are healthcare, retail trade, and accommodation and food service. 11

14 Long-term financial planning Beginning with the fiscal year 2003 budget, all County budgets were developed for a five year horizon. Each department prepares five-year financial plans which address financial sustainability and efficient delivery of services. A five-year capital improvement program has been developed and integrated into the five-year financial plans. Management has developed fiscal policies for the adopted financial plan regarding reserves, transfers, capital improvements, fund balances, and revenues. The Board of County Commissioners has formally adopted a Debt Management Policy, an Investment Policy, and a Financial Reserves Policy. The Investment Policy is described in Note 1, Section D to the financial statements and the Financial Reserves Policy is described in Note 1, Section Q to the financial statements. Management s goals for long-term financial planning include stabilizing tax rates and assessments and growth of the General Fund s fund balance reserves to sustain a complete economic cycle. As a result, Sarasota County s fiscal year 2015 millage rate was the second lowest in the state. In addition, all three national bond rating agencies reflect the County as having a AAA implied general obligation debt rating. The General Fund s fund balance has decreased from $108.6 million at September 30, 2014 to $108.5 million at September 30, The majority (61.4%) of the General Fund s fund balance of $108.5 million has been classified in accordance with the Financial Reserves Policy including provisions for a Contingency/Emergency/Disaster Relief Reserve, a Budget Stabilization/Economic Uncertainty Reserve, and a reserve for compensated absences (unpaid but earned vacation and sick leave), leaving an assigned subsequent years expenditure budgetary fund balance (fund balance budgeted to be used in fiscal year 2016) of $41.5 million (38.2%). Relevant financial policies Consistent with the County s Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized, the debt will be refunded. The County took advantage of these types of savings to refund all or a portion of its Communications Services Tax Revenue Bonds, Series 2006, its Infrastructure Sales Surtax Revenue Bonds, Series 2008A and 2008B, its Limited Ad Valorem Tax Bonds, Series 2008, its Utility System Revenue Refunding Bond Series 2005A, and its Solid Waste System Revenue Refunding Bonds Series 2005.The County also issued a new bank term loan, its $17.9 million Revenue Note, Series 2014B for upgrading the County s 800 MHz emergency communication system. These transactions are further described in Note 7 to the financial statements. The Investment Policy was established by ordinance in 1989 and most recently amended in fiscal year The Investment Policy stresses safety of capital as the highest priority. To ensure the safety and the protection of the public s assets, the weighted average duration of principal return for the portfolio shall be less than two years. The portfolio is actively managed to maximize the return on investments by diversifying maturity dates, and asset classes. The portfolio is structured to provide sufficient liquidity to pay current obligations. The Association of Public Treasurers of the United Stated and Canada (APT US&C) awarded Sarasota County during fiscal year 2014, a Certificate of Excellence for its investment policy. Receiving this certification denotes the County has a sound investment policy founded upon professional standards to assist in ensuring prudent management of public funds. This certification should be renewed every three years. 12

15 In fiscal year 2015, the County, under the direction of the Clerk of Circuit Court and County Comptroller, maintained an average interest rate earned of 1.48%. The following graph illustrates the County s monthly portfolio yield in comparison to several benchmarks. Over the past three fiscal years, the County s portfolio has earned an average interest rate of 1.57% and interest income of $42.1 million, as shown on the following graph. 13

16 Major Initiatives Sarasota County s Major Initiatives help to identify and set priorities within eight strategic goals. Major Initiatives are reviewed and updated annually in conjunction with the budget planning process. Initiatives identify actionable milestones that have a budget impact and balance high level priorities of the Board of County Commissioners and/or the departments. Major initiatives will be reviewed and updated annually. The following initiatives were completed during fiscal year 2015: Completed construction of Emergency Operations Center Completed the Post Disaster Redevelopment Plan Conducted a comprehensive study for Job Market Competitiveness and Pay Compression Executed an Action Plan to fully fund a rolling 5-year Resurfacing Plan Completed the Twin Lakes Fire Station which is one of the four fire stations within that major initiative Completed 1 Neighborhood Capital Improvement Program (Nokomis Sidewalk Project) Awards and acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Sarasota County for its Comprehensive Annual Financial Report for the fiscal year ended September 30, This was the thirty-first consecutive year that Sarasota County received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program requirements and we will submit it to the GFOA to determine its eligibility for another certificate. In addition to being awarded the Certificate of Achievement, Sarasota County was issued the Distinguished Budget Presentation Award for fiscal year This was the twenty-fifth consecutive year that Sarasota County received this award. Sarasota County and the Clerk of the Circuit Court and County Comptroller received the Outstanding Achievement in Popular Annual Financial Reporting (PAFR) recognition from the Government Finance Officers Association for its third consecutive IMPACT report for the year ended September 30, This Comprehensive Annual Financial Report (CAFR) is a product of the dedication of the Finance Department of the Clerk of the Circuit Court and County Comptroller of Sarasota County as Auditor and Chief Financial Officer for the Board of County Commissioners. Recognition goes to: Christopher Best, Regina Foss, Hunter Foxwell, Ekaterina Iovina, Sandy Johnston, Jeff Kern, Evelina Kutepov, Carlos Pellecer, Maxim Sak, Kathleen Shangraw, Elizabeth Thomas, Melissa Velez, Jennifer Wion, and Katherine Woodruff. We would like to express our appreciation and thanks to the Sarasota County Administrator and his staff, along with the Sarasota County Board of County Commissioners for their helpful comments and advice. Sincerely, Karen E. Rushing, Clerk of the Circuit Court and County Comptroller and Chief Financial Officer Nicole E. Jovanovski, CPA Director of Finance 14

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18 Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to Sarasota County for its Comprehensive Annual Financial Report for the fiscal year ended September 30, In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting to GFOA for review. 16

19 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Sarasota County Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2014 Executive Director/CEO 17

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21 STATE ATTORNEY PUBLIC DEFENDER COMMUNITY SERVICES EMERGENCY SERVICES HEALTH & HUMAN SERVICES LIBRARIES & HISTORICAL RESOURCES PARKS, RECREATION & NATURAL RESOURCES UF/IFAS EXTENSION & SUSTAINABILITY SARASOTA COUNTY GOVERNMENT ORGANIZATIONAL CHART CITIZENS SHERIFF CIRCUIT & COUNTY COURT BOARD OF COUNTY COMMISSIONERS CLERK OF THE CIRCUIT COURT & COUNTY COMPTROLLER PROPERTY APPRAISER SUPERVISOR OF ELECTIONS TAX COLLECTOR CITIZEN BOARDS & COMMISSIONS COUNTY ADMINISTRATOR OFFICE OF COUNTY ATTORNEY ADMINISTRATIVE SERVICES COMMUNITY DEVELOPMENT/ INFRASTRUCTURE COMMISSION SERVICES COMMUNICATIONS PLANNING & DEVELOPMENT SERVICES ENTERPRISE INFORMATION TECHNOLOGY COMMUNITY / INTERGOVERNMENTAL RELATIONS PUBLIC UTILITIES FINANCIAL MANAGEMENT ECONOMIC DEVELOPMENT PUBLIC WORKS HUMAN RESOURCES ETHICS & COMPLIANCE SARASOTA COUNTY AREA TRANSIT (SCAT) 19

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23 FINANCIAL SECTION 21

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25 INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Sarasota County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund and the aggregate remaining fund information of Sarasota County, Florida (the County ), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the entity s basic financial statements as listed in the table of contents. We have also audited the financial statements of the Englewood Community Redevelopment Agency (a nonmajor special revenue fund) which is presented as supplementary information in the accompanying combining and individual fund financial statements as of and for the year ended September 30, 2015, as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 23

26 Honorable Board of County Commissioners Sarasota County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information and the financial statements of the Englewood Community Redevelopment Agency (a nonmajor special revenue fund) of Sarasota County as of September 30, 2015, and the respective changes in financial position and cash flows, where applicable, thereof, and the respective budgetary comparison for the general fund, the emergency services special revenue fund and the capital revenue programs special revenue fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 14, the County adopted the provisions of Governmental Accounting Standards Board Statement (GASBS) No. 68, Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27 and the related GASBS No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment of GASB Statement No. 68. As a result of the implementation of GASBS No. 68 and No. 71, the County reported a restatement for the change in accounting principle. The auditors opinion was not modified with respect to the restatement. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management s discussion and analysis and the OPEB schedules of funding progress and employer contributions and schedules of the County s proportionate share of the net pension liability and of its contributions pension plans, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Sarasota County s basic financial statements and the financial statements of Englewood Community Redevelopment Agency which is presented as supplementary information. The combining and individual nonmajor fund financial statements and other supplemental information (with the exception of the Englewood Community Redevelopment Agency), as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter , Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, and is also not a required part of the basic financial statements. 24

27 Honorable Board of County Commissioners Sarasota County, Florida The combining and individual nonmajor fund financial statements and other supplemental information (with the exception of the Englewood Community Redevelopment Agency), and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory, statistical and other supplemental schedules sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 4, 2016, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County s internal control over financial reporting and compliance. Shinn & Company LLC Bradenton, Florida CliftonLarsonAllen LLP Tampa, Florida May 4,

28 Management s Discussion and Analysis As management of Sarasota County, Florida, we offer readers of the County s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended September 30, We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages of this report. Financial Highlights The County implemented Governmental Accounting Standards Board (GASB) Statement No.68, Accounting and Financial Reporting for Pensions and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of GASB Statement No. 68 for fiscal year ending These statements required the County to record its proportionate share of the long-term liability associated with the defined benefit pension plans and related pension amounts, as well as the related deferred inflows and deferred outflows of resources. The implementation of these new accounting standards resulted in a prior period adjustment to reflect the increase in long-term liabilities and resulted in a reduction to beginning net position of $202.6 million. Additional information on employee retirement plans can be found beginning on page 107. The assets and deferred outflows of Sarasota County exceeded its liabilities and deferred inflows at the close of the fiscal year by $2.2 billion (net position). Of this amount, $214.6 million (unrestricted net position) may be used to meet Sarasota County s ongoing obligations to citizens and creditors. Total net position increased by $53.6 million during the current fiscal year. The major contributors to this increase are described on page 29. At the close of the current fiscal year, governmental funds reported combined ending fund balances of $479.8 million, a decrease of $23.1 million during the current fiscal year. Approximately 3.9 percent or $18.7 million is available for spending at the County s discretion (unassigned fund balance). In accordance with the Financial Reserves Policy adopted by the Board of County Commissioners, the County committed approximately $45.0 million of General Fund fund balance and allocated unassigned General Fund fund balance of $18.3 million. There is $46.6 million of restricted fund balance in the Emergency Services Special Revenue Fund. Additional information on this policy is available in Note 1, Section Q, to the financial statements. Total debt decreased by $10.8 million during the current fiscal year. Additional information on debt activity is available in Note 7 to the financial statements beginning on page 95. Sarasota County s General Fund fund balance decreased by $142 thousand this fiscal year. Key factors in this decrease are listed on page 34. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Sarasota County s basic financial statements. Sarasota County s basic financial statements are comprised of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains a statistical section, single audit and other supplementary information in addition to the basic financial statements themselves. 26

29 Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of Sarasota County s finances, in a manner similar to private-sector financial statements. The statement of net position presents Sarasota County s assets plus deferred outflows of resources less liabilities plus deferred inflows of resources. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Sarasota County is improving or deteriorating. The statement of activities presents information showing how the government s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items which will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of Sarasota County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Sarasota County include general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. The businesstype activities of Sarasota County include the Utility System, Solid Waste System, Stormwater Utility and Transportation Authority. The government-wide financial statements can be found on pages of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Sarasota County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Sarasota County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Sarasota County maintains many individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Emergency Services Special Revenue Fund, the Capital Revenue Programs Special Revenue Fund, Infrastructure One-Cent Sales Tax Capital Projects Fund, and the Debt Proceeds Capital Projects Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined in a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Sarasota County adopts an annual budget as described in Note 2 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for any non-major governmental fund which is required to adopt an annual budget is presented in the combining statements elsewhere in this report. 27

30 The basic governmental fund financial statements can be found on pages of this report. Proprietary funds. Sarasota County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Sarasota County uses enterprise funds to account for its Utility System (water and wastewater utility services), Solid Waste System (solid waste disposal facilities), Stormwater Utility (stormwater facilities) and Transportation Authority (public transportation activities). Internal service funds are an accounting device used to accumulate and allocate costs internally among Sarasota County s various functions. Sarasota County uses internal service funds to account for Fleet Services, Information Technology, Risk Management, Medical Benefits, Workers Compensation, Public Works and Field and General Services activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund statements provide separate information for the Utility System, Solid Waste System, Stormwater Utility and Transportation Authority, of which all are considered to be major funds of Sarasota County except the Transportation Authority. The internal service funds are combined into a single, aggregated presentation in the proprietary fund statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support Sarasota County s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages of this report. Other Information. The combining statements referred to earlier in connection with the non-major governmental funds and internal service funds can be found on pages The statistical section contains selected data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions, and operating indicators of the County. This section can be found on pages The other supplemental schedules section contains continuing bond disclosures and schedules relating to debt service. This section can be found on pages The single audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information and auditor reports. This section can be found on Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government s financial condition. Assets and deferred outflows exceeded liabilities and deferred inflows by $2.2 billion at the close of the most recent fiscal year for Sarasota County. The largest portion of Sarasota County s net position, $1.7 billion or 74.8 percent, reflects investment in capital assets such as land, buildings, infrastructure, and equipment, less any related outstanding debt used to acquire those assets. Sarasota County uses these capital assets to provide services to its citizens; consequently, these 28

31 assets are not available for future spending. Although Sarasota County s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Sarasota County, Florida Net Position (in thousands) Governmental Business-type Activities Activities Total Current and other assets $ 528,334 $ 562,309 $ 379,852 $ 362,274 $ 908,186 $ 924,583 Capital assets 1,411,291 1,374, , ,256 2,251,057 2,219,966 Total assets 1,939,625 1,937,019 1,219,618 1,207,530 3,159,243 3,144,549 Deferred outflows of resources 54,689 1,519 4,402 2,898 59,091 4,417 Long-term liabilities 503, , , , , ,092 Other liabilities 99,351 95,990 34,007 32, , ,574 Total liabilities 602, , , , , ,666 Deferred inflows of resources 40,286 2,481 2,835-43,121 2,481 Net investment in capital assets 1,113,722 1,094, , ,776 1,669,476 1,644,279 Restricted 317, ,398 31,174 31, , ,875 Unrestricted (deficit) (79,793) 109, , , , ,665 Total net position $ 1,351,453 $ 1,521,461 $ 881,277 $ 860,358 $ 2,232,730 $ 2,381,819 A portion of Sarasota County s net position, (15.6 percent), represents resources that are subject to external restrictions on how they may be used. Unrestricted net position ($214.6 million) may be used to meet the government s ongoing obligations to citizens and creditors. The implementation of GASB Statement No. 68 and No. 71 had a significant impact on the reporting of the County s long-term liabilities as they relate to pensions and, accordingly, a considerable impact to the County s net position for both Governmental and Business-type Activities. Statement No. 68 and 71 require the County to record its proportionate share of the long-term liability associated with the defined benefit pension plan and the retiree health insurance subsidy program, with related deferred inflows and outflows of resources, as reported by the Florida Retirement System and City of Sarasota Firefighters Pension Plan. As can be seen from the table above, the County reported positive net position in all categories from a government-wide perspective, with the exception of unrestricted net position for Governmental Activities. This is a direct result of the implementation of GASB Statement No. 68 and No. 71 reporting the long-term net pension liability and should not be considered, solely, as evidence of economic financial difficulties. Significant changes in the statement of net position are as follows: Capital assets for governmental and business-type activities increased by 1.4 percent or $31.1 million. Information regarding the composition of this increase can be found in the capital asset section of this analysis page 36. Long-term liabilities for both governmental and business-type activities increased by 27.2% or $173.0 million from the prior fiscal year. This increase is primarily related to the County s net pension liability associated with employee pensions and the health insurance subsidy under the Florida Retirement 29

32 System. Additional information regarding this increase in long-term liabilities can be found in Note 11 beginning page 37. Sarasota County, Florida Changes in Net Position (in thousands) Governmental Business-type Activities Activities Total REVENUES Program revenues: Charges for services $ 101,660 $ 99,246 $ 162,848 $ 157,716 $ 264,508 $ 256,962 Operating grants and contributions 13,268 16,732 5,783 3,876 19,051 20,608 Capital grants and contributions 22,998 27,861 16,481 22,965 39,479 50,826 General revenues: Ad valorem taxes 167, , , ,849 Local government sales tax 63,019 60, ,019 60,268 Other taxes 58,563 56, ,563 56,175 State revenue sharing 12,101 11, ,101 11,401 Investment earnings 9,918 9,877 4,788 4,536 14,706 14,413 Miscellaneous 20,263 9,897 2,316 2,484 22,579 12,381 Total revenues 468, , , , , ,883 EXPENSES General government 94,481 89, ,481 89,157 Public safety 183, , , ,530 Physical environment 6,786 10, ,786 10,094 Transportation 59,350 62, ,350 62,760 Economic environment 10,140 12, ,140 12,670 Human services 22,044 21, ,044 21,205 Culture and recreation 45,042 42, ,042 42,973 Interest on long-term debt 12,525 16, ,525 16,617 Utility system ,947 88,500 91,947 88,500 Solid waste system ,578 37,692 38,578 37,692 Stormwater utility ,706 16,225 17,706 16,225 Transportation authority ,809 26,594 25,809 26,594 Total expenses 433, , , , , ,017 Increase in net position 35,380 6,300 18,176 22,566 53,556 28,866 before transfers Transfers (16,362) (36,897) 16,362 36, Increase (decrease) in net position 19,018 (30,597) 34,538 59,463 53,556 28,866 Net position-beginning, 1,521,461 1,552, , ,202 2,381,819 2,365,260 as previously stated Prior period adjustment (189,026) - (13,619) (12,307) (202,645) (12,307) Net position-beginning as restated 1,332,435 1,552, , ,895 2,179,174 2,352,953 Net position-ending $ 1,351,453 $ 1,521,461 $ 881,277 $ 860,358 $ 2,232,730 $ 2,381,819 Beginning net position has been restated due to the implementation GASB Statement No. 68 and No. 71, which required the County to restate net position in the government-wide financial statements to report the County s net pension liability and related pension amounts for the defined benefit plans. 30

33 Revenues and expenses for governmental activities are shown graphically by function. Public safety is the largest category of expenditures followed by general government. Revenues and Expenses Governmental Activities Fiscal Year 2015 Millions $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $- Revenues Expenses Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is ad valorem taxes followed by charges for services. Revenues by Type Governmental Activities Fiscal Year 2015 State revenue sharing, 2.6% Other taxes, 12.5% Local government sales tax, 13.4% Investment earnings, 2.1% Miscellaneous, 4.3% Charges for services, 21.7% Operating grants and contributions, 2.8% Capital grants and contributions, 4.9% Ad va lorem taxes, 35.7% 31

34 Revenues and expenses are shown by business-type activity. The Utility System (water and wastewater utilities) is the largest business-type activity followed by the Solid Waste System. Revenues and Expenses Business-type Activities Fiscal Year 2015 $120 $100 Millions $80 $60 $40 $20 $- Utility system Solid waste system Stormwater utility Transportation authority Expenses Revenues Revenues for business-type activities are shown graphically by type. The largest type of revenue is charges for services followed by capital grants and contributions. Revenues by Type Business-type Activities Fiscal Year 2015 Capital grants and contributions, 8.6% Investment earnings, 2.5% Miscellaneous, 1.2% Operating grants and contributions, 3.0% Cha rges for services, 84.7% 32

35 Governmental activities. Governmental activities resulted in a $19.0 million increase in net position as the result of current fiscal year activities. Overall, revenues related to governmental activities increased by 4.6 percent, or $20.7 million. Property tax revenues increased from the prior year increasing by $10.3 million, or 6.6 percent, during the current fiscal year reflective of the increases in taxable assessed property values. Miscellaneous revenues increased by $10.4 million, or percent, over the prior fiscal year primarily due to the receipt of net settlement proceeds related to the Deepwater Horizon incident totaling $11.4 million. Local government sales tax revenue increased by $2.8 million, or 4.6 percent due to improvements in the local economy. This is a positive indication that the County s economy is continuing to improve. Tourist tax revenues increased by 11.9 percent or $2.0 million from the prior fiscal year resulting from the continued development of a world-class rowing facility reflecting a steady growth in the sports market and international visitors. In total, expenses in governmental activities decreased approximately 1.9 percent or $8.4 million. General Government expenses increased by $5.3 million or 6.0 percent due to the expense of capital project related expenditures that did not result in a capital asset in the current year. The County experienced a current year reduction in pension expense of $11.7 million for governmental activities largely related to changes in assumptions, participant experience and investment earnings for the current fiscal year. Expenses related to interest on long-term debt decreased by $4.1 million or 24.6 percent due to the refinancing of certain County bond issues to take advantage of interest rate savings in the market. Business-type activities. Business-type activities were responsible for $34.5 million of the total growth in Sarasota County s net position for the current fiscal year. Overall, revenues for business-type activities increased slightly over the prior fiscal year, by $639 thousand. Charges for services increased by $5.1 million or 3.3 percent due to overall growth in the County impacting increases in water and wastewater charges. Operating grants and contributions increased by $1.9 million, or 49.2 percent due to an increase in grants received from Federal Transit Administration and Florida Department of Transportation related to operations of the Transportation Authority. Alternatively, capital grants and contributions decreased by $6.5 million or 28.2 percent related to grants received for the purchase of a large fleet of busses by the Transportation Authority during the prior fiscal year. In total, expenses for business-type activities increased by 3.0 percent or $5.0 million over the prior fiscal year. Key factors that contributed to the increase in expenses are identified below. The Utility System (water and wastewater utilities) expenses increased by 3.9 percent, or $3.4 million as a result of increases in depreciation and amortization charges resulting from the acquisition of the Dolomite Utilities Corporation and increases in interest expense related to a reduction in interest capitalized to active debt funded capital projects. 33

36 The Solid Waste System expenses increased by 2.4 percent, or $886 thousand due to increases in general and administrative costs related to collection and disposal costs related to growth, as well as increases in landfill closure and post closure costs. The Stormwater Utility expenses increased by 9.1 percent, or $1.5 million as a result of increased personal services due to new positions related to the operations and maintenance of the system. The Transportation Authority expenses decreased by 3.0 percent or $785 thousand due to decreases in personal services related to contracted services. Contracted community transport services were mostly privatized during the fiscal year and no longer provided by the County. Financial Analysis of the Government s Funds As noted earlier, Sarasota County uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. Governmental Funds. The focus of Sarasota County s governmental funds is to provide information on nearterm inflows, outflows and balances of spendable resources. Such information is useful in assessing Sarasota County s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, Sarasota County s governmental funds reported combined ending fund balances of $479.8 million, a decrease of $23.1 million compared to the prior year. Approximately 3.9 percent of this total amount, or $18.7 million, constitutes unassigned fund balance, which is available for spending at the County s discretion. Further information regarding unassigned fund balance can be found in the governmental funds financial statements starting on page 44. The remainder of fund balance is restricted, committed, assigned or non-spendable. These amounts totaled $461.2 million or 96.1 percent of ending fund balance. Of this amount, $331.8 million is restricted by law or externally imposed requirements, $82.8 million is committed for specific purposes by the Board of County Commissioners and $44.8 million is assigned for various purposes by the County Administrator. The general fund is the chief operating fund of Sarasota County. The general fund represents 50.5 percent of the total governmental revenues. At the end of the current fiscal year, unassigned fund balance of the general fund was $18.8 million, while the total fund balance was $108.5 million. As a measure of the general fund s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 8.5 percent of the total annual general fund expenditures, while total fund balance represents 49.0 percent of that same amount. The fund balance of Sarasota County s general fund decreased by $142 thousand during the current fiscal year. Key factors in the change in fund balance are as follows: Net settlement proceeds related to the Deepwater Horizon incident totaling $11.4 million were received and allocated to the General Fund as part of the budget stabilization and economic uncertainty reserve. Taxes increased by $6.8 million over the prior fiscal year as a result of the improvement in the local economy. Public safety expenses increased by $4.2 million, or 4.1 percent, mainly due to increases in the Sheriff Office personnel expenses related to hiring new full time employees, a revised deputy salary structure and overall increases in salaries based on the existing step plan. The general fund transferred out $19.0 to the Transportation Authority to fund the cost of operations net of revenue collected. $7.3 million appropriated for various general government activities was not expended. 34

37 Additional information regarding the general fund budget to actual variances can be found on page 36. The Emergency Services Special Revenue Fund has a total fund balance of $46.7 million, a decrease of $4.4 million over the prior fiscal year. This fund balance must be used for fire and ambulance emergency services. The ad valorem taxes collected through the EMS municipal services taxing unit increased by 6.7 percent which is consistent with a moderate increase in assessed property values. Expenditures increased by 2.7 percent due to the purchase of portable radios. The Capital Revenue Programs Special Revenue Fund has a total fund balance of $41.4 million, an increase of $9.9 million over the prior fiscal year. This fund balance must be used to construct infrastructure. The fund received $34.1 million from the local infrastructure one-cent sales tax and $10.1 million from impact fees to fund the County s infrastructure needs. The total transfer to fund capital projects was $21.0 million, a $4.4 million decrease over the prior fiscal year. During fiscal year 2015, $18.1 million was transferred to pay debt service. The Infrastructure One-Cent Sales Tax Capital Projects Fund has a total fund balance of $42.3 million, an increase of $2.0 million from the prior fiscal year. This increase is a result of funding aligned for capital construction that has not occurred yet. This fund is financed by the one-cent, voter-approved sales tax. $11.4 million was spent on governmental, transportation and other related capital projects during the current fiscal year. The Debt Proceeds Capital Project Fund has a total fund balance of $20.7 million, a decrease of $20.7 million from the prior fiscal year. This decrease is a result of continued spending for capital construction. The fund balance must be used to account for specific general government capital improvements that are financed by the issuance of non-self supporting revenue bonds. $40.3 million was spent on capital projects during the current fiscal year. Of which, 46.4 percent and 29.2 percent was spent on Transportation and Public Safety related capital projects, respectively. Proprietary Funds. Sarasota County s proprietary funds provide the same type of information found in the government-wide statements but in more detail. Unrestricted net position of the Utility System Funds increased $10.9 million to $133.0 million at the end of the current fiscal year. This is a result of increased water sales and wastewater treatment charges associated with the increase in customer base resulting from the acquisition of the Dolomite Utilities Corporation water and wastewater utility system. The Solid Waste System Funds unrestricted net position decreased less than $100 thousand to $54.0 million at the end of the current fiscal year. The Stormwater Utility Funds unrestricted net position decreased $973 thousand to $29.8 million at the end of the current fiscal year. The Transportation Authority Funds reported a decrease in unrestricted net position of $4.6 million and reported negative unrestricted fund balance of $1.4 million at the end of the current fiscal year. The decreases in the Solid Waste System, Stormwater Utility and Transportation Authority Funds are largely due to the prior period adjustment associated with the implementation GASB Statement No. 68 and No. 71 reflecting the impact of the net pension liability and related pension amounts for employees of the respective funds. Unrestricted net position in the proprietary funds is available to fund future needs of their respective activities. Other factors concerning the finances of these funds have previously been addressed in the discussion of Sarasota County s business-type activities on page 33. Unrestricted net position in the internal services funds amounted to $43.0 million at the end of the current fiscal year decreasing by $4.8 million over the prior fiscal year. The decrease in unrestricted net position is largely due to the prior period adjustment associated with the implementation GASB Statement No. 68 and No. 71 reflecting the impact of the net pension liability and related pension amounts for employees of the respective internal service fund activities. 35

38 General Fund Budgetary Highlights During the current fiscal year, the Board of County Commissioners approved a $624 thousand increase in appropriations between the original and the final amended budget. Significant budgetary variances between the final amended budget and actual results are listed below: Ad Valorem taxes received were $2.2 million in excess of the anticipated budget. Other intergovernmental revenues, such as Half-Cent Sales Tax, exceeded budgeted amounts by $2.5 million in total. Miscellaneous revenues exceeded budgeted amounts largely due to the receipt of settlement proceeds related to the Deepwater Horizon incident totaling $11.4 million. Additionally, general government operating expenditures were under budget by over $7.3 million due to conservative spending. $32.4 million of budgetary fund balance was budgeted in fiscal year 2015, however only $142 thousand was used. Capital Asset and Debt Administration Capital assets. Sarasota County s investment in capital assets for its governmental and business-type activities, at the end of the current fiscal year, amounted to $2.3 billion (net of accumulated depreciation). This investment in capital assets is comprised of land, land rights, right of ways/ easements, building and building improvements, equipment, software, water and timber rights, construction in progress, and infrastructure. Infrastructure consists predominantly of roads and streets (including peripherals) and bridges within governmental activities, and of water and wastewater systems, stormwater facilities and landfill infrastructure within business-type activities. The County s total investment in capital assets for the current fiscal year increased by 1.4 percent. Capital Assets, Net of Depreciation (in thousands) Governmental Business-type Activities Activities Total Land $ 405,573 $ 401,485 $ 64,381 $ 64,381 $ 469,954 $ 465,866 Land rights Right of w ay/ easements 24,058 24, ,458 24,458 Buildings and improvements 170, ,675 50,145 54, , ,410 Equipment 43,183 38,651 28,209 31,771 71,392 70,422 Infrastructure 572, , , ,397 1,221,701 1,233,004 Softw are 3,874 4, ,576 5,673 Water, timber rights - - 4,446 5,604 4,446 5,604 Construction in progress 190, ,618 42,551 31, , ,604 $ 1,411,291 $ 1,374,710 $ 839,766 $ 845,256 $ 2,251,057 $ 2,219,966 Major capital asset events during the current year included: Construction of the County s new Emergency Operations Center was completed totaling $18.2 million. 36

39 Construction of Fire Station Number 16 at Twin Lakes Park was completed during the current fiscal year totaling $4.5 million. Improvements to the Blackburn Point Park and Bay Island Park were completed during the fiscal year for $6.0 million and $2.0 million, respectively. Construction of the new Gulf Gate Public Library was completed during the fiscal year for $9.6 million. Significant improvements in the Bridge Rehabilitation, Street Tree, Trails Master Plan, Signals and Intersection Safety, Roadway resurfacing and Sidewalks programs totaling $21.9 million were completed during the fiscal year. Jail Facility, Mid-County Tax Collector Facility and certain other facility renovations and upgrades were completed during fiscal year 2015 totaling approximately $5.4 million. Additional information on capital asset activity may be found in Note 6 on pages of this report. Long-term debt. At the end of the current fiscal year, Sarasota County had total bonded debt outstanding of $313.8 million. This amount represents bonds secured solely by specified revenue sources (revenue bonds). Outstanding Debt (in thousands) Governmental Business-type Activities Activities Total Commercial paper $ 18,188 $ 13,747 $ - $ 1,057 $ 18,188 $ 14,804 Notes payable 155,795 63, ,486 90, , ,132 Non-self supporting revenue bonds 164, , , ,496 Self supporting revenue bonds , , , ,645 $ 338,784 $ 323,142 $ 281,502 $ 307,935 $ 620,286 $ 631,077 Sarasota County s total debt decreased by $10.8 million (1.7 percent) during the current fiscal year. During the fiscal year, the County issued Revenue Note, Series 2014B to finance the cost of improvements related to the County s 800MHz critical public safety communication system for the acquisition of radios. The County also issued $6.1 million in Commercial Paper for various projects. The County issued Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 in the amount of $37.4 million to advance refund the County s outstanding Infrastructure Sales Surtax Revenue, Series 2008B bonds, maturing on and after October 1, Additionally, the County issued Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 totaling $33.5 million to advance refund the County s outstanding Infrastructure Sales Surtax Revenue Bonds, Series 2008A, maturing on and after October 1, Furthermore, the County issued Limited Ad Valorem Tax Refunding Bonds, Series 2014 in the amount of $70.7 million to advance refund the Limited Ad Valorem Tax Bonds, Series 2008, maturing on and after October 1, The County also issued Communications Services Tax Revenue Refunding Note, Series 2015 in the amount of $11.4 million to advance refund the Communications Services Tax Revenue Bonds, Series 2006, maturing on and after October 1, Additionally, the County issued Utility System Revenue Refunding Note, Series 2015 in the amount of $28.0 million to current refund the County s Utility System Revenue Refunding Bond, Series 2005A. The County also issued Solid Waste System Revenue Refunding Note, Series 2015 in the amount of $21.7 million to current refund the County s Solid Waste System Revenue Refunding Bonds, Series Sarasota County has no legal debt limit as set forth in the constitution of the State of Florida, Florida Statute In January 2004, the Board of County Commissioners formally adopted a Debt Policy and last amended it in December A copy of the Debt Policy may be found on the website provided below. 37

40 Additional information on Sarasota County s long-term debt activity may be found in Note 7 on pages of this report. Economic Factors and Next Year s Budgets and Rates Sarasota County had an average unemployment rate of 5.2 percent during the current fiscal year, a marked decrease from the 6.0 percent reported in the previous fiscal year. This rate is slightly lower than State and National averages for the same timeframe. The County has been able to maintain or improve the level of services provided while sustaining one of the lowest millage rates in the State of Florida. The aggregate millage county-wide (including the Emergency Services Municipal Services Taxing Unit) for the fiscal year 2016 adopted budget remained at According to the U.S. Department of Commerce Bureau of Economic Analysis, the County's per capita personal income as of 2014 was $54,147. This was the seventh highest of the 67 Florida counties. The assessed value of real estate located in the County after exemptions was valued at $46.5 billion in the current fiscal year, which reflects an increase of $3.1 billion or a 7.1 percent from the prior fiscal year. During the current fiscal year, new residential and nonresidential construction in the County was valued at $304.0 million. Despite the challenging low interest rate environment, the County s portfolio earned an average interest rate of 1.48 percent for fiscal year All of these factors were considered in preparing Sarasota County s budget for the 2016 fiscal year. In accordance with the Financial Reserves Policy, General Fund classifications were created for Contingency, Emergency and Disaster Relief at $45.0 million and Budget Stabilization and Economic Uncertainty at $18.3 million. Additionally, $3.3 million of fund balance in General Fund has been assigned for compensated absences. The General Fund reflects unassigned fund balance of $18.8 million. Of this amount, $500 thousand is remaining after the Financial Reserves Policy classifications. Sarasota County has appropriated $41.5 million of the General Fund s fund balance for spending in the adopted 2016 budget. A copy of the Financial Reserves Policy may be found on the website provided below. For fiscal year 2016, the Board of County Commissioners has assigned $700 thousand of reserves in the General Fund. The reserves are expended as considered and approved by the Board of County Commissioners throughout the 2016 fiscal year. Requests for Information This financial report is designed to provide a general overview of Sarasota County s finances for all those with an interest in the government s finances. Questions concerning any of the information provided in this report or requests for additional financial information may be addressed to: Sarasota County, Florida Clerk of the Circuit Court and County Comptroller P O Box 8, Sarasota, FL

41 BASIC FINANCIAL STATEMENTS 39

42 Statement of Net Position September 30, 2015 ASSETS Current: Governmental Business-type Activities Activities Total Cash and investments $ 546,994,235 $ 232,459,385 $ 779,453,620 Interest receivable 1,094, ,802 1,581,289 Accounts receivable (net of allowance) 10,438,021 9,980,049 20,418,070 Prepaid items 1,132,179-1,132,179 Internal balances (78,903,321) 78,903,321 - Intergovernmental receivable 27,669,054 1,510,596 29,179,650 Loans and notes receivable 10,060,066-10,060,066 Inventories 2,766,258 2,469,978 5,236,236 Total current unrestricted assets 521,250, ,810, ,061,110 Current restricted assets: Customer deposits cash - 1,273,009 1,273,009 Landfill closure cash - 497, ,973 Construction trust cash - 1,189,069 1,189,069 Debt service cash - 254, ,675 Total current restricted assets - 3,214,726 3,214,726 Total current assets 521,250, ,024, ,275,836 Non-current assets: Restricted assets Landfill closure cash - 19,961,713 19,961,713 Construction trust cash - 16,832,118 16,832,118 Debt service cash - 5,097,807 5,097,807 Renewal and replacement cash - 2,500,000 2,500,000 Capacity fee receivable - 5,267,638 5,267,638 Interest receivable - 45,236 45,236 Intergovernmental receivable 79, ,352 1,022,643 OPEB assets held in trust 6,998,000-6,998,000 Total non-current restricted assets 7,077,291 50,647,864 57,725,155 Unamortized bond insurance 6, , ,446 Nondepreciable capital assets 621,139, ,332, ,471,218 Depreciable capital assets (net) 790,151, ,433,664 1,522,585,065 Total non-current assets 1,418,374, ,592,801 2,308,966,884 Total assets 1,939,625,062 1,219,617,658 3,159,242,720 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 18,451,190 2,230,713 20,681,903 Deferred charges for pensions 36,238,172 2,171,667 38,409,839 Total deferred outflows of resources $ 54,689,362 $ 4,402,380 $ 59,091,742 The notes to the financial statements are an integral part of this statement. 40

43 Statement of Net Position September 30, 2015 LIABILITIES Current liabilities: Accounts payable 7,962,714 Governmental Business-type Activities Activities Total $ $ 3,454,269 $ 11,416,983 Wages and benefits payable 10,104, ,117 11,050,724 Contracts and retainages payable 13,664,150 8,191,707 21,855,857 Intergovernmental payable 12,895, ,849 13,863,661 Compensated absences 15,321,746 1,715,701 17,037,447 Notes and loans payable 10,013,010 14,077,083 24,090,093 Commercial paper payable 5,965,000-5,965,000 Bonds payable 13,070,000 1,025,000 14,095,000 Unearned revenue 2,337, ,363 2,751,808 Claims and judgments payable 8,016,308-8,016,308 Total current liabilities payable from unrestricted assets 99,350,792 30,792, ,142,881 Current liabilities payable from restricted assets: Unearned revenue - 399, ,613 Contracts and retainages payable - 789, ,456 Customer deposits - 1,273,009 1,273,009 Interest payable - 254, ,675 Landfill closure - 497, ,973 Total current liabilities payable from restricted assets - 3,214,726 3,214,726 Total current liabilities 99,350,792 34,006, ,357,607 Noncurrent liabilities: Rebatable arbitrage 121,380 15, ,262 Notes and loans payable 145,781, ,409, ,190,921 Commercial paper payable 12,223,000-12,223,000 Bonds payable (net) 151,731, ,990, ,722,022 Net pension liability 175,033,438 12,422, ,455,716 Compensated absences 6,615, ,139 6,744,876 Claims and judgments 11,717,743-11,717,743 Landfill closure - 26,933,340 26,933,340 Total noncurrent liabilities 503,224, ,900, ,124,880 Total liabilities 602,574, ,907, ,482,487 DEFERRED INFLOWS OF RESOURCES Taxes received in advance 2,577,367-2,577,367 Deferred charges on debt refundings - 331, ,365 Deferred charges for pensions 37,708,813 2,503,852 40,212,665 Total deferred inflows of resources 40,286,180 2,835,217 43,121,397 NET POSITION Net investment in capital assets 1,113,722, ,753,902 1,669,476,054 Restricted for capital projects 126,866,436 23,576, ,442,475 Restricted for enabling legislation 136,503, ,503,408 Restricted for special revenues-other 30,591,124-30,591,124 Restricted for debt service 13,163,789-13,163,789 Restricted for renewal and replacement - 2,500,000 2,500,000 Restricted for other purposes nonexpendable 1,492,710-1,492,710 Restricted for other purposes 8,906,358 5,097,807 14,004,165 Unrestricted (79,792,637) 294,349, ,556,853 Total net position $ 1,351,453,340 $ 881,277,238 $ 2,232,730,578 41

44 Statement of Activities For the Year Ended September 30, 2015 Program Revenues Operating Capital Charges for Grants and Grants and FUNCTIONS / PROGRAMS Expenses Services Contributions Contributions Governmental activities: General government $ 94,481,243 $ 31,777,219 $ 1,098,277 $ 451,760 Public safety 183,216,146 63,147,556 2,332,050 2,611,987 Physical environment 6,786,007 1,718,336 1,952, ,770 Transportation 59,349,710 1,540,502 4,775,473 14,890,280 Economic environment 10,139, ,457 1,911,402 11,726 Human services 22,044,286 18, ,178 - Culture and recreation 45,042,036 2,842, ,612 4,931,360 Interest on long term debt 12,524, ,190 - Total governmental activities 433,583, ,660,042 13,268,226 22,997,883 Business-type activities: Utility system 91,947, ,506,928 1,114,417 15,098,550 Solid waste system 38,577,581 40,342, Stormwater utility 17,705,874 16,656, ,041 1,241,407 Transportation authority 25,808,455 2,341,894 4,351, ,444 Total business-type activities 174,039, ,847,768 5,783,297 16,481,401 Total primary government $ 607,622,968 $ 264,507,810 $ 19,051,523 $ 39,479,284 The notes to the financial statements are an integral part of this statement. General revenues: Ad valorem taxes Motor fuel tax Tourist tax Franchise tax Local communications services tax Local government sales tax State revenue sharing-unrestricted Other state shared revenue-unrestricted Unrestricted investment earnings Miscellaneous Transfers Total general revenues and transfers Change in net position Net position - beginning, as previously stated Prior period adjustment, refer to Note 14 Net position - beginning as restated Net position - ending 42

45 Net (Expense) Revenue and Changes in Net Position Governmental Business-type Activities Activities Total $ (61,153,987) $ - $ (61,153,987) (115,124,553) - (115,124,553) (3,014,857) - (3,014,857) (38,143,455) - (38,143,455) (7,601,383) - (7,601,383) (21,824,018) - (21,824,018) (37,107,182) - (37,107,182) (11,688,379) - (11,688,379) (295,657,814) - (295,657,814) - 27,772,802 27,772,802-1,764,857 1,764, , ,082 - (18,973,278) (18,973,278) - 11,073,463 11,073,463 (295,657,814) 11,073,463 (284,584,351) 167,173, ,173,563 11,964,586-11,964,586 19,073,635-19,073,635 17,308,484-17,308,484 10,216,291-10,216,291 63,018,804-63,018,804 9,550,327-9,550,327 2,550,986-2,550,986 9,918,400 4,788,014 14,706,414 20,262,620 2,315,949 22,578,569 (16,361,598) 16,361, ,676,098 23,465, ,141,659 19,018,284 34,539,024 53,557,308 1,521,461, ,357,645 2,381,818,672 (189,025,971) (13,619,431) (202,645,402) 1,332,435, ,738,214 2,179,173,270 $ 1,351,453,340 $ 881,277,238 $ 2,232,730,578 43

46 Balance Sheet Governmental Funds September 30, 2015 Emergency Capital Revenue Services Programs General Special Special Fund Revenue Fund Revenue Fund ASSETS Cash and investments $ 110,270,098 $ 41,233,606 $ 35,917,507 Accounts receivable (net) - 6,414,826 - Accounts receivable - other 3,327, Interest receivable 194,907 87,187 92,492 Due from other funds 196, Intergovernmental receivable 8,445, ,956 5,420,265 Loans receivable Inventories - 129,241 - Advances to other funds 2,143, Total assets $ 124,578,215 $ 48,654,816 $ 41,430,264 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 3,957,368 $ 111,332 $ - Wages and benefits payable 7,082,407 1,508,856 - Contracts and retainages payable 187, ,733 - Due to other funds Intergovernmental payable 1,953, Unearned revenue 304, Deposits 43, Advances from other funds Total liabilities 13,529,155 1,926,921 - DEFERRED INFLOWS OF RESOURCES Taxes received in advance 2,577, Fund Balances Nonspendable - 129,241 - Restricted - 46,598,654 41,430,264 Committed 44,977, Assigned 44,726, Unassigned 18,768, Total fund balances 108,471,693 46,727,895 41,430,264 Total liabilities, deferred inflows of resources and fund balances $ 124,578,215 $ 48,654,816 $ 41,430,264 The notes to the financial statements are an integral part of this statement. 44

47 Infrastructure One Cent Sales Tax Debt Proceeds Other Total Capital Projects Capital Projects Governmental Governmental Fund Fund Funds Funds $ 44,319,287 $ 23,061,200 $ 223,174,837 $ 477,976, ,414, ,289 3,377,761 63,833 46, , , , ,229,721 26,885, ,060,066 10,060, , , ,143,000 $ 44,383,120 $ 23,107,417 $ 246,151,532 $ 528,305,364 $ 3,771 $ 877 $ 2,991,075 $ 7,064, ,014,003 9,605,266 2,114,736 2,347,968 6,480,361 11,437, , , ,073 10,828,408 12,840, ,186,707 2,491, , , ,143,000 2,143,000 2,118,625 2,406,918 25,906,156 45,887, ,577, ,642,044 1,771,285 42,264,495 20,700, ,803, ,797, ,846,804 82,823, ,865 44,790, (110,727) 18,657,587 42,264,495 20,700, ,245, ,840,222 $ 44,383,120 $ 23,107,417 $ 246,151,532 $ 528,305,364 45

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49 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2015 Total fund balances - total governmental funds $ 479,840,222 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds Nondepreciable capital assets $ 621,139,200 Depreciable capital assets 790,151,401 Internal Service (32,848,248) 1,378,442,353 Other long-term assets are not available to pay for current-period expenditures, and therefore are expensed in future periods. This item 6,191 includes unamortized bond insurance. Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet, to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 82,814,555 Amounts are payable to business-type funds resulting from internal service and indirect expense eliminations. (78,903,321) Deferred charges on debt refundings 18,451,190 Deferred outflows on pensions, net of internal service funds 35,040,969 Long-term liabilities are not due and payable in the current period, and therefore are not reported in the funds. Bonds payable (153,620,000) Less: Issuance discounts (amortized as interest expense) 292,250 Plus: Issuance premium (amortized as interest expense) (11,473,427) Net pension liability, net of internal service funds (168,185,252) Commercial paper payable (18,188,000) Notes payable (155,794,647) Rebatable arbitrage (121,380) Compensated absences, net of internal service funds (20,819,878) Deferred inflows on pensions, net of internal service funds (36,328,485) Net position of governmental activities $ 1,351,453,340 The notes to the financial statements are an integral part of this statement. 47

50 Sarasota, County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended September 30, 2015 Emergency Capital Revenue Services Programs General Special Special Fund Revenue Fund Revenue Fund REVENUES Taxes $ 130,710,958 $ 23,760,172 $ 34,056,096 Permits, fees and special assessments 18,283,723 34,915,198 10,141,579 Intergovernmental 40,602,117 1,993,530 - Charges for services 38,914,531 13,307,945 - Judgments, fines and forfeits 550, Interest income 1,740, , ,184 Net inc (dec) in fair value of investments 201, , , Contributions and donations Miscellaneous 12,524, ,453 3,774,555 Total revenues 243,528,556 75,171,414 48,680,500 EXPENDITURES Current: General government 74,074, Public safety 106,268,256 77,161,706 - Physical environment 2,828, Transportation Economic environment 1,078, Human services 10,317, Culture and recreation 26,847, ,078 Debt service: Principal 45, Interest and fiscal charges 38, Debt issuance costs Refunding other sources to escrow Total expenditures 221,499,373 77,161, ,078 Excess (deficiency) of revenues over (under) expenditures 22,029,183 (1,990,292) 48,368,422 OTHER FINANCING SOURCES (USES) Transfers in 13,841, , ,531 Transfers out (36,012,502) (3,033,087) (39,085,999) Revenue bond issuance Note issuance Commercial paper issuance Advance refunding bond proceeds to escrow Premium on bond debt Total other financing sources (uses) (22,170,689) (2,399,797) (38,443,468) Net change in fund balances (141,506) (4,390,089) 9,924,954 Fund balances - beginning 108,613,199 51,117,984 31,505,310 Fund balances - ending $ 108,471,693 $ 46,727,895 $ 41,430,264 The notes to the financial statements are an integral part of this statement. 48

51 Infrastructure One Cent Sales Tax Debt Proceeds Other Total Capital Projects Capital Projects Governmental Governmental Fund Fund Funds Funds $ - $ - $ 54,550,660 $ 243,077, ,002,474 73,342, ,213,996 64,809, ,563,803 66,786, ,155,330 3,706, , ,382 3,558,186 7,848,734 74,997 23, ,439 1,086, , ,768 38,946 4,128 4,642,970 21,189, , , ,457, ,044, ,760 39,950 19,864,529 94,651, ,372 11,786,415 25,682, ,076,958 1,116, ,111 4,333,061 8,577,679 7,087,092 18,730,197 36,595,122 62,412, ,200,265 10,279, ,881,401 22,199,112 2,354,775 9,481,298 18,516,967 57,512, ,124,000 25,169, ,457,624 11,495, , , ,020,650 1,020,650 11,409,590 40,336, ,522, ,242,359 (10,769,554) (39,770,397) (51,065,165) (33,197,803) 12,744,890 3,718,906 66,649,573 98,231,003 - (2,571,080) (32,322,706) (113,025,374) ,845,000 70,845,000-17,955,000 82,170, ,125, ,066,000 6,066, (165,438,141) (165,438,141) ,262,470 13,262,470 12,744,890 19,102,826 41,232,196 10,065,958 1,975,336 (20,667,571) (9,832,969) (23,131,845) 40,289,159 41,368, ,078, ,972,067 $ 42,264,495 $ 20,700,499 $ 220,245,376 $ 479,840,222 49

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53 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the Year Ended September 30, 2015 Net change in fund balances - total governmental funds $ (23,131,845) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Reduction of capital expenditures $ 96,959,129 Reduction for reinstated assets 110,656 Contribution for capital assets 17,695 Depreciation expense (64,720,962) 32,366,518 Debt issuances provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This is the amount by which repayments exceeded proceeds. Bond issuance $ 70,845,000 Commercial paper issuance 6,066,000 Loans and notes issuances 100,125,000 Bond premium issuance 13,262,470 Payments to escrow agent (165,438,141) Refunding other sources to escrow (1,020,650) Principal payments-bonds (15,315,000) Principal payments-commercial paper (1,625,000) Principal payments-notes (8,229,005) 1,329,326 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities net of outside services. 2,391,980 Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. Pension expense $ 11,772,623 Compensated absences (683,011) Arbitrage (40,128) Amortization expenses (180,005) 10,869,479 Internal charges net effect (4,555,257) Developers contributed local roads and park land 433,466 Capital assets were transferred to business-type funds from governmental-type funds. (685,383) Change in net position of governmental activities $ 19,018,284 The notes to the financial statements are an integral part of this statement. 51

54 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 128,884,813 $ 128,884,813 $ 130,710,958 $ 1,826,145 Permits, fees and special assessments 16,394,773 16,394,773 18,283,723 1,888,950 Intergovernmental 38,049,473 38,145,821 40,602,117 2,456,296 Charges for services 36,828,406 36,892,206 38,914,531 2,022,325 Judgments, fines and forfeits 230, , , ,789 Interest income 2,069,631 2,069,631 1,740,093 (329,538) Net inc (dec) in fair value of investments , ,382 Contributions and donations 40,000 40,000 - (40,000) Miscellaneous 982,883 1,056,912 12,524,976 11,468,064 Total revenues 223,480, ,715, ,528,556 19,813,413 EXPENDITURES Current: General government: Board of County Commissioners 767, , ,039 8,360 Administration 17,618,589 17,713,403 15,506,596 2,206,807 County Attorney 3,475,768 3,475,768 3,207, ,751 General services 16,885,198 16,842,571 14,701,718 2,140,853 Financial management 3,796,155 3,794,155 3,459, ,139 Human Resources 2,671,016 2,670,868 2,357, ,288 Planning and development services 3,021,520 3,020,661 2,849, ,844 Development Review 382, , ,801 30,068 Property Appraiser 5,571,359 5,628,304 5,427, ,448 Tax Collector 7,906,760 7,906,760 7,663, ,961 Clerk of Circuit Court 9,757,967 9,810,847 9,788,068 22,779 Supervisor of Elections 3,843,913 3,877,913 3,503, ,968 Judicial 3,897,002 3,876,635 3,147, ,320 Other government agencies 1,593,129 1,593,129 1,349, ,980 Total general government 81,188,584 81,362,282 74,074,716 7,287,566 Public safety: Administration 2,727,467 2,727,467 2,718,568 8,899 Emergency management 4,591,684 4,619,660 4,522,756 96,904 Planning and development services 1,579,816 1,579,816 1,334, ,546 Sheriff 97,765,976 97,862,324 97,692, ,662 Total public safety 106,664, ,789, ,268, ,011 Physical environment: Community services - 102,338 34,491 67,847 Cooperative extension 1,007,788 1,057, , ,110 Parks and recreation 320, , ,707 69,554 Water resource management 132, , ,687 12,279 Natural resources 1,916,950 1,916,950 1,575, ,439 Total physical environment 3,378,586 3,531,145 2,828, ,229 The notes to the financial statements are an integral part of this statement. 52

55 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget Economic environment: Financial management 437, , ,318 40,684 Community services 99,000 53,824 29,665 24,159 Human services 605, , ,254 4,107 Housing grants management 160, ,000 49, ,330 Total economic environment 1,301,599 1,258,187 1,078, ,280 Human services: Community services 886, , ,860 (48,892) Parks and recreation 50,000 50,000 23,830 26,170 Human services 5,850,280 5,935,341 5,794, ,570 Public health services 3,505,073 3,536,202 3,466,194 70,008 Judicial 94,695 94,695 96,056 (1,361) Total human services 10,386,252 10,504,206 10,317, ,495 Culture and recreation: Community Services - 13,102 12, Historical resources 468, , ,024 65,246 Libraries 10,399,106 10,399,035 9,961, ,865 Parks and recreation 17,146,215 17,284,489 16,471, ,390 Total culture and recreation 28,013,591 28,164,896 26,847,643 1,317,253 Debt service: Principal 45,005 45,005 45,005 - Interest and fiscal charges 38,218 38,218 38,219 (1) Total debt service 83,223 83,223 83,224 (1) Total expenditures 231,016, ,693, ,499,373 10,193,833 Excess (deficiency) of revenues over (under) expenditures (7,535,812) (7,978,063) 22,029,183 30,007,246 OTHER FINANCING SOURCES (USES) Transfers in 5,444,762 13,871,319 13,841,813 (29,506) Transfers out (38,371,832) (38,319,403) (36,012,502) 2,306,901 Total other financing sources and (uses) (32,927,070) (24,448,084) (22,170,689) 2,277,395 Net change in fund balance (40,462,882) (32,426,147) (141,506) 32,284,641 Fund balance - beginning 108,613, ,613, ,613,199 - Fund balance - ending $ 68,150,317 $ 76,187,052 $ 108,471,693 $ 32,284,641 53

56 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Emergency Services Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 23,335,666 $ 23,335,666 $ 23,760,172 $ 424,506 Permits, fees and special assessments 34,418,913 34,418,913 34,915, ,285 Intergovernmental 1,650,814 1,650,814 1,993, ,716 Charges for services 10,380,100 10,380,100 13,307,945 2,927,845 Interest income 591, , , ,111 Net inc (dec) in fair value of investments , ,170 Contributions and donations 1,200 1, (1,050) Miscellaneous 148, , ,453 54,999 Total revenues 70,526,832 70,526,832 75,171,414 4,644,582 EXPENDITURES Current: Public safety 82,256,583 82,238,821 77,161,706 5,077,115 Total expenditures 82,256,583 82,238,821 77,161,706 5,077,115 Excess (deficiency) of revenues over (under) expenditures (11,729,751) (11,711,989) (1,990,292) 9,721,697 OTHER FINANCING SOURCES (USES) Transfers in 633, , ,290 - Transfers out (1,723,684) (3,120,555) (3,033,087) 87,468 Total other financing sources and (uses) (1,090,394) (2,487,265) (2,399,797) 87,468 Net change in fund balances (12,820,145) (14,199,254) (4,390,089) 9,809,165 Fund balances - beginning 51,117,984 51,117,984 51,117,984 - Fund balances - ending $ 38,297,839 $ 36,918,730 $ 46,727,895 $ 9,809,165 The notes to the financial statements are an integral part of this statement. 54

57 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Revenue Programs Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 30,480,972 $ 30,480,972 $ 34,056,096 $ 3,575,124 Permits, fees and special assessments 9,314,255 8,778,904 10,141,579 1,362,675 Interest income 597, , ,184 8,949 Net inc in fair value of investments , ,086 Miscellaneous - 3,000,000 3,774, ,555 Total revenues 40,392,462 42,857,111 48,680,500 5,823,389 EXPENDITURES Current: General government 452, , ,088 Public safety 1,732,310 1,732,310-1,732,310 Transportation 5,388,715 4,323,680-4,323,680 Culture and recreation 3,124,279 2,415, ,078 2,103,906 Total expenditures 10,697,392 8,924, ,078 8,611,984 Excess (deficiency) of revenues over (under) expenditures 29,695,070 33,933,049 48,368,422 14,435,373 OTHER FINANCING SOURCES (USES) Transfers In - 642, ,531 1 Transfers out (34,334,158) (39,245,251) (39,085,999) 159,252 Total other financing sources and (uses) (34,334,158) (38,602,721) (38,443,468) 159,253 Net change in fund balances (4,639,088) (4,669,672) 9,924,954 14,594,626 Fund balances - beginning 31,505,310 31,505,310 31,505,310 - Fund balances - ending $ 26,866,222 $ 26,835,638 $ 41,430,264 $ 14,594,626 The notes to the financial statements are an integral part of this statement. 55

58 Statement of Net Position Proprietary Funds September 30, 2015 Business-type Activities Enterprise Funds Major Major Major Utility Solid Waste Stormwater System System Utility ASSETS Current unrestricted assets: Cash and investments $ 133,216,710 $ 63,018,065 $ 32,762,913 Interest receivable 285, ,988 68,039 Accounts receivable (net) 9,832, , Prepaid items Intergovernmental receivable 60, , Inventories - 1,561,314 - Total current unrestricted assets 143,396,127 65,446,942 32,832,038 Current restricted assets: Customer deposits cash 595, ,689 - Landfill closure cash - 497,973 - Construction trust cash 23,269-1,165,800 Debt service cash 254, Total current restricted assets 873,264 1,175,662 1,165,800 Total current assets 144,269,391 66,622,604 33,997,838 Non-current assets: Restricted assets Landfill closure cash - 19,961,713 - Construction trust cash 14,523,242-2,308,876 Debt service cash 5,097, Renewal and replacement cash 2,000, ,000 - Capacity fee receivable 5,267, Interest receivable 36,949-8,287 Intergovernmental receivable ,352 OPEB assets held in trust Total non-current restricted assets 26,925,636 20,461,713 3,260,515 Unamortized bond insurance 179, Nondepreciable capital assets 53,097,937 30,831,669 20,643,231 Depreciable capital assets (net) 566,982,064 67,609,476 73,445,854 Total non-current assets 647,184, ,902,858 97,349,600 Total assets 791,454, ,525, ,347,438 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 1,805, ,443 - Deferred charges for pensions 816, , ,477 Total deferred outflows of resources $ 2,621,279 $ 575,492 $ 340,477 The notes to the financial statements are an integral part of this statement. 56

59 Nonmajor Governmental Transportation Activities - Internal Authority Total Service Funds $ 3,461,697 $ 232,459,385 $ 69,017,698 2, , ,568 30,016 9,980, , ,132, ,520 1,510, , ,664 2,469,978 2,487,683 5,231, ,906,810 74,342,496-1,273, , ,189, , ,214,726-5,231, ,121,536 74,342,496-19,961, ,832, ,097, ,500, ,267, , ,352 79, ,998,000-50,647,864 7,077, ,255-2,759, ,332,018 6,012,879 24,396, ,433,664 26,835,369 27,155, ,592,801 39,925,539 32,387,154 1,140,714, ,268,035-2,230, ,132 2,171,667 1,197,203 $ 865,132 $ 4,402,380 $ 1,197,203 (Continued) 57

60 Statement of Net Position Proprietary Funds September 30, 2015 Business-type Activities Enterprise Funds Major Major Major Utility Solid Waste Stormwater System System Utility LIABILITIES Current unrestricted liabilities: Accounts payable $ 2,853,870 $ 17,097 $ 24,896 Wages and benefits payable 348,880 60, ,123 Contracts and retainages payable 3,967,366 3,554, ,693 Intergovernmental payable 823, ,255 Compensated absences 727, , ,711 Notes and loans payable 11,597,083 2,480,000 - Bonds payable 1,025, Unearned revenue 414, Claims and judgments payable Total current liabilities payable from unrestricted assets 21,758,069 6,238,879 1,271,678 Current liabilities payable from restricted assets: Unearned revenue 18, ,991 Contracts and retainages payable 4, ,809 Customer deposits 595, ,689 - Interest payable 254, Landfill closure - 497,973 - Total current liabilities payable from restricted assets 873,264 1,175,662 1,165,800 Total current liabilities 22,631,333 7,414,541 2,437,478 Non-current liabilities: Rebatable arbitrage ,882 Notes and loans payable 99,199,284 19,210,000 - Revenue bonds payable (net) 147,990, Net pension liability 4,667, ,305 1,947,584 Compensated absences 54,789 9,486 25,871 Claims and judgments Landfill closure - 26,933,340 - Total non-current liabilities 251,912,618 47,011,131 1,989,337 Total liabilities 274,543,951 54,425,672 4,426,815 DEFERRED INFLOWS OF RESOURCES Deferred charges on debt refundings 331, Deferred charges for pensions 940, , ,558 Total deferred inflows of resources 1,272, , ,558 NET POSITION Net investment in capital assets 358,289,936 77,031,993 93,276,522 Restricted for capital projects 19,827,829-3,748,210 Restricted for renewal and replacement 2,000, ,000 - Restricted for contractual requirements 5,097, Unrestricted 133,043,848 53,970,287 29,843,809 Total net position $ 518,259,420 $ 131,502,280 $ 126,868,541 58

61 Nonmajor Governmental Transportation Activities - Internal Authority Total Service Funds $ 558,406 $ 3,454,269 $ 788, , , ,340 67,816 8,191,707 2,227, ,849 55, ,044 1,715,701 1,039,373-14,077, ,025, , ,016,308 1,523,463 30,792,089 12,626, , , ,273, , , ,214,726-1,523,463 34,006,815 12,626,193-15, ,409, ,990,845-4,948,689 12,422,278 6,848,186 38, ,139 78, ,717,743-26,933,340-4,987, ,900,768 18,644,161 6,511, ,907,583 31,270, , ,465 2,503,852 1,380, ,465 2,835,217 1,380,329 27,155, ,753,902 32,848,248-23,576, ,500, ,097,807 6,998,000 (1,411,775) 215,446,169 42,968,307 $ 25,743,676 $ 802,373,917 $ 82,814,555 59

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63 Reconciliation of the Proprietary Funds Statement of Net Position to the Statement of Net Position September 30, 2015 Total net position $ 802,373,917 Amounts reported for business-type activities in the statement of net position are different because: Internal service fund activities related to enterprise funds were consolidated and internal service expenses and indirect expenses were eliminated. 78,903,321 Net positon of business-type activities $ 881,277,238 The notes to the financial statements are an integral part of this statement. 61

64 Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the Year Ended September 30, 2015 Major Major Major Utility Solid Waste Stormwater System System Utility OPERATING REVENUES Charges for services $ 5,073,890 $ 40,342,438 $ 16,656,508 Water sales 40,290, Wastewater treatment charges 58,141, Other revenue 1,276,737 1,002,139 3,840 Total operating revenues 104,783,565 41,344,577 16,660,348 OPERATING EXPENSES Personal services 11,259,592 2,037,071 5,124,604 General and administrative 4,939,702 31,778,177 9,387,828 Water treatment and distribution 28,195, Wastewater collection and treatment 16,580, Landfill closure and post closure - 2,140,233 - Claims paid Depreciation and amortization 24,331,776 2,390,181 5,074,951 Total operating expenses 85,306,702 38,345,662 19,587,383 Operating income (loss) 19,476,863 2,998,915 (2,927,035) NON-OPERATING REVENUES (EXPENSES) Operating grants 1,114, ,041 Interest income 2,560,721 1,251, ,007 Net inc (dec) in fair value of investments 301, ,140 70,334 Interest expense (11,538,686) (1,163,324) (10,191) Debt issuance and insurance costs (43,201) (29,561) - Gain on disposition of assets Total non-operating revenues (expenses) (7,605,414) 210, ,191 Income (loss) before contributions and transfers 11,871,449 3,209,022 (1,940,844) Capital contributions 15,082,524-1,755,209 Transfers in 29,211-66,330 Transfers out (2,473,464) (480,025) (446,207) Change in net position 24,509,720 2,728,997 (565,512) Net position - beginning, as previously stated 498,986, ,709, ,270,382 Prior period adjustment, refer to Note 14 (5,236,787) (935,740) (1,836,329) Net position - beginning 493,749, ,773, ,434,053 Net position - ending $ 518,259,420 $ 131,502,280 $ 126,868,541 The notes to the financial statements are an integral part of this statement. Business-type Activities Enterprise Funds 62

65 Nonmajor Governmental Transportation Activities - Internal Authority Total Service Funds $ 2,341,547 $ 64,414,383 $ 99,156,172-40,290, ,141,985-12,416 2,295,132 1,345,013 2,353, ,142, ,501,185 12,400,335 30,821,602 15,427,690 12,164,610 58,270,317 28,566,525-28,195, ,580, ,140, ,537,849 3,447,103 35,244,011 8,269,596 28,012, ,251,795 93,801,660 (25,658,085) (6,109,342) 6,699,525 4,351,323 5,782,780-18,123 4,439, ,944 2, ,442 91,005 - (12,712,201) - - (72,762) - 21,780 21,780 1,027,853 4,393,858 (2,015,258) 2,016,802 (21,264,227) (8,124,600) 8,716, ,921 16,989,654-18,981,425 19,076,966 1,597,370 (1,055) (3,400,751) (2,479,214) (2,131,936) 24,541,269 7,834,483 33,486, ,452,079 82,760,657 (5,610,575) (13,619,431) (7,780,585) 27,875, ,832,648 74,980,072 $ 25,743,676 $ 802,373,917 $ 82,814,555 63

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67 Reconciliation of the Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position to the Statement of Activities For the Year Ended September 30, 2015 Change in net position - total business-type activities $ 24,541,269 Amounts reported for business-type activities in the statement of net position are different because: Amounts are receivable from government-type funds because internal service expenses and indirect expenses were eliminated. 9,997,755 Government-wide change in net position - total business-type activities $ 34,539,024 The notes to the financial statements are an integral part of this statement. 65

68 Statement of Cash Flows Proprietary Funds For the Year Ended September 30, 2015 Business-type Activities Enterprise Funds Major Major Utility Solid Waste System System CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services $ 103,233,381 $ 40,119,991 Cash received for other revenues 1,276,738 1,002,139 Cash received for outside services - - Cash payments for goods and services (50,092,972) (30,154,044) Cash payments to employees (11,702,726) (2,119,193) Cash payments for customer deposits (69,389) - Net cash provided by (used for) operating activities 42,645,032 8,848,893 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Operating grants received 1,114,416 - Cash transfers from other funds 29,211 - Cash transfers to other funds (2,473,464) (480,025) Net cash provided by (used for) noncapital financing activities (1,329,837) (480,025) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Note issuance 28,000,000 21,690,000 State revolving loan issuance 1,056,764 - Proceeds from sale of capital assets - - Special assessment credits issued - - Capital contributed by developers and other funds 9,289,923 - Capital grants 27,567 - Acquisition and construction of capital assets (17,530,951) (1,018,439) Payments for debt issuance costs (33,350) (29,561) Principal repayments-revenue bonds (40,140,000) (25,765,000) Principal repayments-commercial paper - - Principal repayments-notes (8,496,045) - Interest paid (12,280,633) (1,386,068) Net cash provided by (used for) capital and related financing activities (40,106,725) (6,509,068) CASH FLOWS FROM INVESTING ACTIVITIES: Investment earnings received 2,857,179 1,430,374 Net increase (decrease) in cash 4,065,649 3,290,174 Cash and investments, October 1, 2014 (including $57,874,729 in restricted assets) 151,645,374 81,365,266 Cash and investments, September 30, 2015 (including $47,606,364 in restricted assets) $ 155,711,023 $ 84,655,440 The notes to the financial statements are an integral part of this statement. 66

69 Governmental Major Nonmajor Activities- Stormwater Transportation Internal Utility Authority Total Service Funds $ 16,656,508 $ 2,328,574 $ 162,338,454 $ 97,524,704 3,840 12,416 2,295,133 1,320, ,704,752 (9,111,042) (11,747,920) (101,105,978) (70,321,171) (4,875,602) (12,917,705) (31,615,226) (16,239,550) - - (69,389) - 2,673,704 (22,324,635) 31,842,994 13,989, ,575 3,687,599 5,063,590-66,330 18,981,425 19,076,966 1,597,370 (446,207) (1,055) (3,400,751) (2,479,214) (118,302) 22,667,969 20,739,805 (881,844) ,690, ,056, ,668 (188,029) - (188,029) ,289,923-1,559, ,441 2,569,266 - (3,229,348) (254,287) (22,033,025) (11,329,925) - - (62,911) (65,905,000) - (1,057,000) - (1,057,000) - (7,755) - (8,503,800) - (9,649) - (13,676,350) - (2,932,523) 728,154 (48,820,162) (10,510,257) 680,786 21,675 4,990, , ,665 1,093,163 8,752,651 3,589,633 35,933,924 2,368, ,313,098 65,428,065 $ 36,237,589 $ 3,461,697 $ 280,065,749 $ 69,017,698 (Continued) 67

70 Statement of Cash Flows-Continued Proprietary Funds For the Year Ended September 30, 2015 Business-type Activities Enterprise Funds Utility Solid Waste System System Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 19,476,863 $ 2,998,915 Adjustments to reconcile operating income to net cash provided by (used for) operating activities: Depreciation and amortization expense 24,331,776 2,390,181 Interest expense on customer deposits (43,066) - (Increase) decrease in accounts receivable (214,171) (5,146) (Increase) decrease in intergovernmental receivable (16,208) (234,163) (Increase) decrease in inventories - 147,967 (Increase) decrease in prepaid items - - (Increase) decrease in OPEB assets held in trust - - (Increase) decrease in deferred outflows for pensions (357,672) (68,151) Increase (decrease) in vouchers payable 155,514 (31,780) Increase (decrease) in wages and benefits payable 67,991 7,005 Increase (decrease) in contracts and retainage payable (730,937) 1,704,265 Increase (decrease) in net pension liability 1,568, ,561 Increase (decrease) in compensated absences (66,857) (34,644) Increase (decrease) in claims payable - - Increase (decrease) in intergovernmental payable 220,939 (11,198) Increase (decrease) in customer deposits payable (69,389) 16,862 Decrease in Atlantic Claim Assumption (23,154) - Increase (decrease) in landfill closure liability - 1,955,112 Increase (decrease) in deferred inflows (1,655,316) (290,893) Total adjustments 23,168,169 5,849,978 Net cash provided by (used for) operating activities $ 42,645,032 $ 8,848,893 Non-cash investing, capital and financing activities: Contributed capital assets $ 161,103 $ - Contributed capital assets from developers 6,014,301 - Change in fair value of investments 675, ,754 Special assessment credits - - Capitalized interest for State Revolving Loan 10,093-68

71 Governmental Activities- Stormwater Transportation Internal Utility Authority Total Service Funds $ (2,927,035) $ (25,658,085) $ (6,109,342) $ 6,699,525 5,074,951 3,447,103 35,244,011 8,269, (43,066) - - (12,973) (232,290) (24,288) - - (250,371) 18, , ,766 42, , (430,000) (179,757) (374,078) (979,658) (516,223) (10,114) 237, ,325 (1,109,809) 52,830 55, ,725 73, ,995 (151,814) 1,094, , ,897 1,628,511 4,362,688 2,243,860 32,836 (43,717) (112,382) (135,615) ,603 13, ,646 55, (52,527) (23,154) ,955,112 - (517,804) (1,783,985) (4,247,998) (2,476,908) 5,600,739 3,333,450 37,952,336 7,289,936 $ 2,673,704 $ (22,324,635) $ 31,842,994 $ 13,989,461 $ 513,803 $ 10,477 $ 685,383 $ ,014, ,708 5,224 1,222, , , , ,093-69

72 Statement of Fiduciary Net Position Fiduciary Funds September 30, 2015 Law Library Agency Trust Funds ASSETS Cash and investments $ 275,448 $ 26,688,744 Accounts receivable - other - 1,342,426 Intergovernmental receivable 8, Property, plant and equipment 1,965 - Total assets 286,307 $ 28,031,674 LIABILITIES Accounts payable 4,703 38,631 Wages and benefits payable 2,552 - Due to other individuals - 2,736,590 Intergovernmental payable 30,304 12,186,017 Interest payable - 7,658 Unearned revenue 10,494 - Compensated absences 10,191 - Deposits - 13,062,778 Total liabilities 58,244 $ 28,031,674 NET POSITION Held in trust for law library $ 228,063 The notes to the financial statements are an integral part of this statement. 70

73 Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended September 30, 2015 Law Library Trust ADDITIONS Taxes $ 22,172 Intergovernmental 67,552 Charges for services 823 Interest income 299 Miscellaneous 164 Total additions 91,010 DEDUCTIONS Personal services 51,532 Operating expenses 58,273 Total deductions 109,805 Change in net position (18,795) Net position - beginning 246,858 Net position - ending $ 228,063 The notes to the financial statements are an integral part of this statement. 71

74 Notes to Financial Statements September 30, 2015 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Sarasota County, Florida have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the County's accounting policies are described below. A. REPORTING ENTITY Sarasota County, Florida (the County) is a political subdivision of the State of Florida. The people of the County have adopted a Home Rule Charter in accordance with the constitution and the laws of the State of Florida. The Home Rule Charter sets forth a "commission" form of government under which a five member Board of County Commissioners (Commissioners) is elected to serve as the executive and legislative body for the County. The Commissioners appoint a county administrator whose duties include the administration of directives and policies of the Commissioners and who has responsibility for the operation of all business centers and the provision of services under the purview of the Commissioners. The people of the County also elect a Sheriff, a Clerk of the Circuit Court and County Comptroller, a Supervisor of Elections, a Tax Collector and a Property Appraiser whose responsibilities and duties are set forth in the Home Rule Charter. The financial statements of the County include all governmental functions and operations controlled by or dependent on the County. Accordingly, the financial statements include with the General Fund all the elected officials referred to above, since the Commissioners are responsible for reviewing and incorporating the annual operating budget for each elected official into the County s budget. Separate financial statements may be obtained for these constitutional officers through the Sarasota County Finance Department. The financial statements also include various special districts, such as Public Improvement Districts, Street Lighting Districts, Fire and Ambulance Districts, Facility Service Districts and, Mosquito Control District (Chapter , Laws of Florida), which are reported as blended component units. These County s component units, although legally separated entities, are in substance part of the County s operations and have the same governing board. The financial transactions of these component units are merged in with similar transactions of the County as part of the primary government. The Englewood Community Redevelopment Agency (County Resolution # ) was established on March 31, 1998 by the Board of County Commissioners and appointed a seven members board to serve as the Englewood CRA Advisory Board. The Englewood Redevelopment Agency is considered a blended component unit because it provides services and there is a benefit or burden relationship between the County and the entity. The Sarasota County Law Library (County Ordinance # ) is also considered a blended component unit because it provides services that benefit the County even when it does not provide the services directly. The Sarasota Health Facilities Authority (the Authority) is a public instrumentality created June 21, 1977 by the Sarasota County Board of County Commissioners. The Authority exists to facilitate issuing tax-exempt debt for not-for-profit health care organizations. The Sarasota Health Facilities is considered a blended component unit, it shares as a government body the Board of County Commissioners. The County has no responsibility for the debt issues approved by the Authority but there is financial benefit and or burden relationship. Certain separate legal entities within the County are autonomous organizations with their own governmental powers and constituencies. These entities, which are not included in the financial statements, are as follows: The Cities of Sarasota, Venice and North Port and the Town of Longboat Key - The Cities of Sarasota, Venice and North Port and the Town of Longboat Key are in the boundaries of Sarasota County. Each of these entities has a separately elected board and separate budgeting, accounting and reporting requirements. Sarasota County School Board - The School Board operates county-wide and is completely separate and autonomous. It has five elected board members and a superintendent of schools. It operates under regulations prescribed by the State Board of Education and the Florida Statutes. It levies its own taxes and receives a large part of its income from the State of Florida. 72

75 Notes to Financial Statements September 30, 2015 Sarasota Memorial Hospital - Sarasota Memorial Hospital is an autonomous entity located within the boundaries of Sarasota County. It is operated by its own elected board and has its own taxing authority. It was created by a special act of the Florida Legislature. B. BASIS OF PRESENTATION The County s basic financial statements contain three components: government-wide financial statements, fund financial statements, and notes to the financial statements. 8B8BUGovernment-Wide Financial Statements U The government-wide financial statements consist of a statement of net position and a statement of activities. These statements report all of the assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, expenses, gains and losses on all of the nonfiduciary activities of the County, providing a consolidated financial picture of the government as a whole. For the most part, the effect of interfund activity has been removed from these statements. Each statement distinguishes between activities that are supported primarily by taxes and intergovernmental revenues (governmental activities) and activities that are intended to recover all or most of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, physical environment, transportation, economic environment, human services, and culture and recreation. The business-type activities of the County include the Utility System, Solid Waste System, Stormwater Utility and the Transportation Authority. The statement of net position reports all financial and capital resources and obligations of the County as a whole. The effects of fiduciary funds are not included as a part of this statement. The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources is reported as net position. The statement of activities presents information showing how the County s net position changed during the fiscal year. Further, this statement demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The effect of administrative and support services indirect expense allocations has been eliminated in the government-wide financial statements. Depreciation expense for capital assets that serve all functions is reported as a direct expense of the general government function on the government-wide statement of activities. All interest on general long-term debt is considered indirect and is reported separately in the government-wide statement of activities. Program revenues include 1) charges to customers or applicants for goods, services, or privileges provided and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, and other items not properly included among program revenues, are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. For identifying the function to which program revenue pertains, the determining factor for charges for services is the function that generates the revenue. For grants and contributions, the determining factor is the function to which the revenues are restricted. UFund Financial Statements The accounts of the County are organized on the basis of funds, each of which is considered a separate accounting entity. Fund structures, where applicable, have been designed to comply with all requirements of the bond resolutions and regulatory provisions or administrative action. The operations of each fund are accounted for with a separate set of self-balancing accounts comprised of its assets, liabilities, equities, revenues and expenditures, or expenses, as appropriate. The various funds are grouped into three categories: governmental funds, proprietary funds, and fiduciary funds. Separate financial statements are provided for each of these categories. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The remaining governmental funds are aggregated and reported as nonmajor funds. 73

76 Notes to Financial Statements September 30, 2015 Governmental Funds Governmental Funds focus primarily on the sources, uses, and balances of current financial resources and often have a budgetary orientation. The governmental fund category includes the general fund, special revenue funds, debt service funds, capital project funds, and permanent funds. The County reports the following major governmental funds: The General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not required either legally or by generally accepted accounting principles to be accounted for in other funds are accounted for in the General Fund. The Emergency Services Special Revenue Fund is used to account for the operations of fire and ambulance districts and the emergency 911 center. Revenue consists of assessments to property owners, service charges, and impact fees and is legally restricted to expenditures for the purpose of public safety. The Capital Revenue Programs Special Revenue Fund is used to account for funds collected under the road, park, and library impact fee and infrastructure surtax ordinances. These funds are legally restricted to expenditures for the purpose of culture and recreation and related capital projects as specified in the ordinances. The Infrastructure One Cent Sales Tax Capital Projects Fund is used to account for proceeds of the one-cent, voter-approved sales tax and are restricted for general government, road and park projects. The Debt Proceeds Capital Projects Fund is used to account for capital improvement projects that are financed by the issuance of revenue bonds and are restricted for this specific purpose. Other Governmental Funds is an aggregation of all other governmental funds. Proprietary Funds Proprietary Funds focus on the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. The proprietary fund category includes enterprise and internal service funds. Enterprise Funds may be used to account for any activity for which a fee is charged to external users for goods or services. Activities are required to be reported as enterprise funds if any one of the following criteria is met: (a) the activity is financed with debt that is secured solely by a pledge of the net revenues from fees and charges of the activity; (b) laws or regulations require that the activity s costs of providing services, including capital costs be recovered with fees and charges, rather than with taxes or similar revenues; or (c) the pricing policies of the activity establish fees and charges designated to recover its costs, including capital costs. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund s principal ongoing operations. The principal operating revenues of the County s enterprise and internal service funds are charges to customers for sales and services. These operating revenues are pledged for debt service bond covenants. The County also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for the County s enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The County reports the following proprietary funds: The Utility System Fund (a major fund) is used to account for the operations of the County s water and wastewater utility services. All activities necessary to provide such services, including administration, operations, maintenance, financing, billing, and collection are accounted for in these funds. The Solid Waste System Fund (a major fund) is used to account for the County s solid waste disposal facilities. All activities necessary for the provision of this service are accounted for in these funds. 74

77 Notes to Financial Statements September 30, 2015 The Stormwater Utility Fund (a major fund) is used to account for the operations of the County s stormwater utility facilities. All activities necessary for the provision of this service are accounted for in these funds. The Transportation Authority Fund (a nonmajor fund) is used to account for the operations of the public transportation activities. All revenues, including state and federal grants, and all expenditures related to the operation of these services, are accounted for in this fund. Internal Service Funds are used to account for the financing of the County s fleet services, technology, resource management, public works and self-insurance programs provided by one fund to other funds, business centers and agencies of the County, on a cost-reimbursement basis. Additionally, the County reports the following fund types: A Permanent Fund is utilized to account for permanent endowments established for the benefit of the County s library system. All principal is held in the permanent fund. Investment income is allocated to the specific endowments based on average cash balances and it is then transferred out for expenditure in accordance with laws, donor instructions, and County policy. Fiduciary Funds are used to account for assets held in a trustee or agency capacity for others and therefore cannot be used to support the County s own programs. The County utilizes a private-purpose trust fund to account for the receipt and expenditure transactions of the Sarasota County Law Library and utilizes agency funds to account for abandoned property, bond money, and other resources held in a purely custodial capacity. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements not the measurement focus applied. The government-wide, proprietary fund and the fiduciary trust fund financial statements are all reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet and operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable and expenses are recognized in the period in which the related liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the County s water and wastewater function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The internal service activity has been eliminated on the government-wide financial statements. Internal service activity is reported in full on the proprietary fund financial statements, as aggregated into a single summary column. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. The County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, with the exception of Emergency Medical Services 75

78 Notes to Financial Statements September 30, 2015 (EMS) receivables which are collected within 9 months. Primary revenue sources which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain other revenues such as taxes and other intergovernmental revenues. Revenues not considered available are recorded as unearned revenues. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. Typical exceptions include principal and interest on general long-term debt which is recognized when due and certain portions of compensated absences. When both restricted and unrestricted resources are available for use, it is the County s policy to use restricted resources first, followed by committed, assigned and unassigned resources as they are needed. D. CASH AND INVESTMENTS The County is authorized by County Ordinance No , adopted September 5, 1989, to invest surplus funds in accordance with Florida Statute On September 19, 1995, the investment policy was revised to conform to the newly adopted Florida Statute On January 10, 2006, the policy was further revised to conform to County Ordinance No On September 9, 2008, the policy was further revised to conform to County Ordinance No On December 11, 2013, the policy was further revised to conform to County Ordinance No This investment policy formally established guidelines and authorized the County to invest in the following: (1) Florida Prime, formerly known as the Local Government Surplus Funds Trust Fund, under the management of the State Board of Administration (SBA); (2) Negotiable direct obligations of, or obligations in which the principal and interest are unconditionally guaranteed by the United States Government; (3) Interest bearing time deposits or savings accounts in banks and savings and loans organized under state laws or doing business in and situated in the state, provided collateral requirements are met; (4) Obligations of the following: Federal Farm Credit Banks (FFCB) Federal Home Loan Mortgage Corporation (FHLMC) (participation certificates) Federal Home Loan Bank (FHLB) or its banks Government National Mortgage Association (GNMA) Federal National Mortgage Association (FNMA) Student Loan Marketing Association (SLMA) Tennessee Valley Authority (TVA) Resolution Funding Corporation (REFCORP) Financing Corporation (FICO); (5) Commercial paper of U.S. corporations having a rating of at least two of the following three ratings: A-1, P-1 and F-1, as rated by Standard & Poors, Moody's, and Fitch Investors Service rating services, respectively; (6) Bankers' acceptances that are eligible for purchase by the Federal Reserve Banks and have a letter of credit rating of AA or better; (7) Tax-exempt obligations of the State of Florida and its various local governments, including Sarasota County; (8) Florida Local Government Investment Trust (FLGIT) administered by the Florida Association of Court Clerks and Comptrollers Service Corporation; (9) Florida Municipal Investment Trust (FMIvT) fixed income portfolios with a modified duration of less than 5 years, administered by the Florida League of Cities; and 76

79 Notes to Financial Statements September 30, 2015 (10) Florida Municipal Pension Trust Fund (FMPTF), administered by the Florida League of Cities only applicable for Other Post Employment Benefit (OPEB) plan assets. All funds participate in the pooled cash investment program. Investment income is allocated to individual funds based upon their average daily balance in the cash pool. Investment income earned in the utility debt service fund is deposited into the utility operating fund, pursuant to utility bond covenants. Each fund's individual equity in the County's investment pool is considered to be a cash equivalent, since the funds can deposit or effectively withdraw cash at any time without prior notice or penalty. This methodology is also used in the statement of cash flows for the Proprietary funds. Investments in debt securities and money markets are recorded at fair value based upon quoted market prices. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments or values obtained from independent pricing services. The County's policy for reporting particular investments at amortized cost applies only to investments held in external investment pools which are 2a7-like. The value of the County's investment position in the Local Government Surplus Trust Funds external investment pools (2a7-like pools) is the same as the value of the pool shares. The fair value of the County's position in the Florida Local Government Investment Trust (FLGIT) external investment pool is the same as the value of the pool shares. Net realized and unrealized gains and losses on investments are reflected in the statement of activities; the statement of revenues, expenditures and changes in fund balances; and the statement of revenues, expenses and changes in fund net position, as applicable. The calculation of realized gains and losses is independent of the calculation of the net change in the fair value of investments. Realized gains and losses are netted for financial statement presentation purposes. Realized gains and losses on investments that are held in more than one fiscal year are included as a change in the fair value of investments repo5-1 rted in the prior year(s) and the current fiscal year. The Local Government Surplus Funds Trust Funds (Florida Prime and Fund B) are administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida, Chapter 19-7 of the Florida Administrative Code. FLGIT is a public entity created via a trust indenture, organized under the laws of the State of Florida, and reviewed monthly by Standard & Poors. FLGIT, as governed by a Board of Trustees, reports all share information at net asset value and reflects fair value accounting in accordance with GASB Statement No. 31. E. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally equivalent to the receivables that are over 90 days past due. F. INTERFUND BALANCES Activity between funds that are representative of lending / borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to / from other funds or advances to / from other funds. Any residual balances outstanding between the governmental activities and business-type activities at the end of the fiscal year are reported in the government-wide financial statements as internal balances. The long-term portion of advances between funds, as reported in the fund financial statements, have been classified as nonspendable unless the funds associated with repayment of the advances are otherwise restricted for specific purposes. G. INVENTORIES Inventories are valued at cost, using either moving average or first-in, first-out (FIFO) method. Inventories in the special revenue funds, consisting of expendable supplies, are recorded as expenditures as they are used (i.e., the consumption method). Governmental Fund inventories are classified as nonspendable fund balance which indicates that the fund balance is not in spendable form. 77

80 1B1B1B Sarasota County, Florida Notes to Financial Statements September 30, 2015 H. RESTRICTED ASSETS The following items are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants or state regulation: certain proceeds of the County s enterprise fund revenue bonds and related resources are set aside for their repayment; funds set aside per state regulation for landfill closure and post-closure costs. In addition, impact fee revenues and capital assessment revenues are set aside to be used for their respective purposes in accordance with related state statutes, regulations and County ordinances. I. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure (e.g., roads, bridges, wastewater, water, drainage systems, and similar items), are reported in the proprietary fund financial statements and in the applicable governmental or business-type activities columns in the government-wide financial statements. Assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair value on the date received. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Amounts expended for maintenance and repairs are charged to expenditures/expenses as incurred. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. GASB Statement No. 51 established accounting and financial reporting requirements for intangible assets. Sarasota County complies with this statement by incorporating software, easements, patents, copyrights, water, timber and land rights as intangible assets. Information regarding intangible assets are included in Note 6 in the financial statements. Property, plant and equipment of the County are depreciated using the straight-line method over the following estimated useful lives: Assets Years Capitalization Threshold Buildings & building improvements years Capitalize all Infrastructure: General Gov't/Enterprise years $1,000,000/$50,000 Equipment: All other 3 10 years Per FL Statute Intangible Assets: Patents, copyrights, trademarks years $150,000 Water, and timber use rights years $150,000 Software:Internally Generated 3 10 years $150,000 Software:Purchased Software 3 10 years $150,000 J. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of net position includes a separate section for deferred outflows of resources. This represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. For the County, two types of items qualify for reporting in this category. The first type is a deferred charge on refunding reported in the proprietary and the governmentwide statements of net position. A deferred charge on debt refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second type is a deferred charge that represents changes in actuarial assumptions, the difference between expected and actual economic experience, the net difference between projected and actual earnings, changes in the proportion and differences between the County s contributions and proportionate share of contributions, and the County s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the 78

81 Notes to Financial Statements September 30, 2015 City of Sarasota s firefighters pension plan. These amounts will be recognized as increases in pension expense in future years. In addition to liabilities, the statement of net position includes a separate section for deferred inflows of resources. This represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. For the County, two types of items qualify for reporting in this category. The first type are taxes received in advance that are reported in the governmental funds balance sheet and the government-wide statement of net position and result from estimated property taxes and non-ad valorem assessments that are collected in quarterly installments. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second type represents the changes in actuarial assumptions, the net difference between projected and actual earnings, and changes in the proportion and differences between the County s contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the City of Sarasota s firefighters pension plan. These amounts will be recognized as reductions in pension expense in future years. K. COMPENSATED ABSENCES County policy permits employees to accumulate a limited amount of annual leave, which will be paid to employees upon termination of employment. Accumulated annual leave, and certain other salary-related costs associated with the payment of annual leave, is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds to the extent that such amounts have matured, payment is probable, and would normally be liquidated with expendable available financial resources. L. INTERFUND TRANSACTIONS Interfund transactions are reflected as services provided, reimbursements or transfers. Services provided, deemed to be at or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. M. LONG-TERM OBLIGATIONS Long-term debt and other long-term obligations are reported as liabilities in the proprietary fund financial statements and in the applicable governmental or business-type activities columns in the government-wide financial statements. Such obligations are recognized as a liability in the governmental funds financial statements only when due, or when resources have been accumulated in debt service funds for payment early in the following year. N. BOND PREMIUMS, DISCOUNTS, LOSS ON DEFEASANCE, AND ISSUANCE COSTS In the proprietary fund financial statements and in the applicable governmental or business-type activities columns in the government-wide financial statements, bond premium and discounts, as well as bond insurance costs, are deferred and amortized over the life of the bonds using the bonds-outstanding method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in the current period, except for bond insurance costs which are reported as unamortized bond insurance costs and amortized over the term of the related debt. In accordance with GASB Statement No. 65, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. This gain or loss is amortized over the life of the old debt or the life of the new debt, whichever is shorter. In the governmental fund financial statements, bond premiums and discounts, as well as issuance costs, are recognized in the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances 79

82 Notes to Financial Statements September 30, 2015 are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. O. ENCUMBRANCES Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded as reservations of budget, is employed as an extension of the statutory required budgetary process. At year end, outstanding encumbrances represent material purchase commitments for goods and services which were ordered, budgeted, and appropriated but which had not been received or completed at that date. Although encumbrances lapse at year-end, it is the County s intention to substantially honor these encumbrances under authority provided in the subsequent year s budget. The County has the following significant encumbrances as of September 30, 2015: Encumbrance Governmental Activities: General Fund $ 1,556,994 Emergency Services Special Revenue 69,248 Infrastructure One Cent Sales Tax Capital Projects 22,633,521 Debt Proceeds Capital Projects 14,041,455 Nonmajor Governmental Funds 82,453,834 Total governmental activities $ 120,755,051 P. ENDOWMENTS Two donor-restricted and five designated endowments have been established for the benefit of the County s library system. Such endowments are reported in the financial statements as a nonmajor governmental fund, or more specifically, a permanent fund type. Florida Statute classifies net appreciation on endowments as income, rather than principal, and is hence legally available for spending; however, it is the policy of the County not to appropriate appreciation on investments. One hundred percent of other investment income is appropriated in a special revenue fund and expended for purposes as specified by donors. Q. NET POSITION / FUND BALANCES The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted net position and unrestricted: Net Investment in Capital Assets This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation, liabilities, and the outstanding balances of debt attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. Restricted Net Position This category presents external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. At year end, governmental activities net position restricted for other purposes was composed of amounts related to contracts, gifts, OPEB assets held in trust and the permanent endowment fund. Business-type activities net position restricted for other purposes was composed of amounts related to debt service funds. Unrestricted Net Position This category represents net position that does not meet the definition of net investment in capital assets or restricted. In the governmental fund financial statements, financial reserves are classified by components of fund balance per GASB Statement No. 54. Classifications of fund balance are established by the Sarasota County Board of County Commissioners as authorized by County Resolution and the senior management team and may be classified as committed or assigned. These tentative plans for expenditures can be increased, reduced or eliminated by similar actions. 80

83 Notes to Financial Statements September 30, 2015 Contingency/Emergency/Disaster Relief Reserves are to be used to ensure the maintenance of services to the public during non-routine and unforeseen disaster situations such as hurricanes and other weather-related events, as well as other environmental or natural disasters that cause disruptions in public services as declared appropriate by the Commissioners. These reserves are reported in the governmental fund financial statements as committed fund balance. Recovery of the Contingency/Emergency/Disaster Relief Reserve after drawdown will be examined on an annual basis to determine the need for increases in fees/taxes or expenditure reductions to ensure the funds are replenished within a five year time period. Budget Stabilization and Economic Uncertainty Reserves are to be used for short term cash flow purposes, unanticipated expenditures of a non-recurring nature, to meet unexpected immediate increases in service delivery costs, or to maintain service levels in the event that an economic downturn should cause a shortfall in revenues. These reserves are reported in the governmental fund financial statements as unassigned fund balance. See Note 1W - Governmental Fund Balances for additional information. R. REVENUES Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if collected within 60 days of the end of the current fiscal period, with the exception of EMS which is 9 months. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenue in the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the County. 4BS. PROPERTY TAXES Taxes in Sarasota County are levied by the Board. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board. No aggregate ad valorem tax millage in excess of 10 mills on the dollar is levied against property in the County as specified in Florida Statute Each year the total taxable property valuation is established by the Sarasota County Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. 81

84 Notes to Financial Statements September 30, 2015 The County assesses properties, bills for and collects property taxes as follows: Lien date - January 1 Levy date - November 1 Tax bills mailed - November 1 Collection dates - November 30: 4% discount - December 31: 3% discount - January 31: 2% discount - February 28: 1% discount Due date - Before April 1 Tax sale for delinquent property taxes - June 1 T. ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. U. PENSIONS In the government-wide and proprietary funds statements of net position, liabilities are recognized for the County s proportionate share of each pension plan s net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan, the Health Insurance Subsidy (HIS) and the City of Sarasota firefighters pension plan and additions to/deductions from FRS s, HIS s and the firefighters pension plan fiduciary net position have been determined on the same basis as they are reported by each plan. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. V. IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARDS STATEMENTS The County implemented the following GASB Statements during the fiscal year ended September 30, 2015: (1) Statement No. 68, Accounting and Financial Reporting for Pensions, an Amendment of GASB Statement No. 27, improved accounting and financial reporting by state and local governments for pensions. The goal of this statement is to provide decision-useful information, supporting assessments of accountability and inter-period equity and create additional transparency. This statement was fully implemented for fiscal year (2) Statement No. 71, Pension transition for contributions made subsequent to the measurement date, an amendment of GASB statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government s beginning net pension liability. 82

85 Notes to Financial Statements September 30, 2015 W. FUND BALANCE REPORTING AND GOVERNMENTAL FUND-TYPE DEFINITIONS Fund Balances are reported in the fund statements in the following classifications: Non-Spendable Fund Balance Amounts that are (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted Fund Balance - Amounts that can be spent only for specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance - Amounts that can be used only for the specific purposes determined by a formal action of the Commissioners, the County s highest level of decision making authority, with formal action occurring prior to fiscal year end. Commitments may be changed or lifted only by the Commissioners taking the same formal action (resolution) that imposed the constraint originally. Assigned Fund Balance - Includes spendable fund balance amounts, pursuant to the Financial Reserves Policy (Resolution ), established by the Chief Financial Planning Officer or his designee that are intended to be used for specific purposes that are neither considered restricted or committed. Unassigned Fund Balance This is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. Unassigned fund balance may also include negative balances for any governmental fund, except the General Fund, if expenditures exceed amounts restricted, committed, or assigned for those specific purposes. 83

86 X. GOVERNMENTAL FUND BALANCES Sarasota County, Florida Notes to Financial Statements September 30, 2015 At September 30, 2015, the County's governmental fund balances were classified as follows: Major Funds Infrastructure Emergency Capital Revenue One Cent Services Programs Sales Tax General Special Special Capital Projects Fund Revenue Fund Revenue Fund Fund Nonspendable: Advance funds $ - $ - $ - $ - Endow ments Inventories - 129, Total nonspendable - 129, Restricted: Debt service Capital projects ,264,495 Grants Enabling legislation - 44,710,144 13,135,448 - Impact fees - 1,888,510 28,294,816 - Other Total restricted - 46,598,654 41,430,264 42,264,495 Committed: Contingency/Emergency 44,977, Capital projects Formal action Total committed 44,977, Assigned: Compensated absences 3,276, Other Subsequent year expenditures 41,450, Total assigned 44,726, Unassigned (1) : 18,768, Total fund balances $ 108,471,693 $ 46,727,895 $ 41,430,264 $ 42,264,495 Note: (1) Included in Unassigned Fund Balance is Budget Stabilization and Economic Uncertainty Reserves in the follow ing amounts: General Fund 18,295,205 Development Services 1,078,854 Emergency Services 12,422,066 $ 31,796,125 84

87 Notes to Financial Statements September 30, 2015 Major Fund Debt Proceeds Other Total Capital Projects Governmental Governmental Fund Funds Funds $ - $ - $ - - 1,492,710 1,492, , ,575-1,642,044 1,771,285-13,163,789 13,163,789 20,700,499 86,665, ,630, , ,798-78,657, ,503, ,183,326-1,908,358 1,908,358 20,700, ,803, ,797,302-1,078,854 46,056,046-19,286,021 19,286,021-17,481,929 17,481,929-37,846,804 82,823, ,276,012-63,865 63, ,450,175-63,865 44,790,052 - (110,727) 18,657,587 $ 20,700,499 $ 220,245,376 $ 479,840,222 85

88 Notes to Financial Statements September 30, 2015 NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY The statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County are as follows: (1) Within 15 days after certification of the ad valorem tax roll by the Property Appraiser, the County Budget Officer prepares and presents to the Commissioners a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts, taxes to be brought forward, and all estimated appropriations, reserves and balances to be carried forward at the end of the year as specified in Section , Florida Statutes. (2) Within 80 days of the certification of value, but not earlier than 65 days after certification, the Commissioners hold a public hearing on the tentative budget and proposed millage rate. At this hearing the Commissioners amend and adopt the tentative budget, recompute the proposed millage rate and announce publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled-back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Commission. (3) Within 15 days of the meeting adopting the tentative budget, the Commissioners advertise the County's intent to adopt a final budget and millage rate. (4) A public hearing is held by the Commissioners to finalize the budget and adopt a millage rate. This hearing is held not less than two days or more than five days after the day that the advertisement is first published. The adoption of the final budget, prior to September 30, and millage levy are by separate votes, and in no event is the millage rate adopted allowed to exceed the tentatively adopted millage rate. (5) The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector, and Florida Department of Revenue; not later than thirty days following the adoption of the Resolution the Commissioners certify to the State of Florida, Department of Revenue, Division of Ad Valorem Tax that it has complied with the provisions of Chapter 200, Florida Statutes. (6) During the ensuing fiscal year, the County Budget Officer acts on intradepartmental budget changes that do not alter the total revenue or expenditures of the lower of department or fund level. All other budgetary changes are acted on by the Commissioners in open session. The budgetary data presented herein was amended by the Commissioners during the year in accordance with Florida Statutes. (7) Section , Florida Statutes, as amended in 1978, provides that only expenditures in excess of total fund budgets are unlawful. (8) Formal budgetary integration is employed as the legal authority for expenditures and as a management control device during the fiscal year for all fund types. The only funds required to report budget to actual amounts are the general, special revenue, debt service, and permanent funds. The Sheriff s Special Revenue Funds are excluded from such reporting, as they do not have a legally adopted budget. (9) All legally adopted budgets are on a basis consistent with GAAP. Because capital projects funds budgets are prepared for the project life rather than for the standard current fiscal year, project appropriations for these budgets lapse at the conclusion of the project. All other appropriations lapse at the end of the current fiscal year. 86

89 Notes to Financial Statements September 30, 2015 NOTE 3. CASH AND INVESTMENTS Custodial Credit Risk Custodial credit risk is defined as the risk that, in the event of failure of the counterparty, the County will not be able to recover the value of its securities that are in the possession of an outside party. At September 30, 2015, the County s book balance of cash was $125,868,199 and the bank balance was $132,592,086. The County s bank balances are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for each banking relationship. The remaining balances are collateralized pursuant to Chapter 280, Florida Statutes. The County s investment policy requires that deposits be entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. The County s investment policy requires that securities be secured through third-party custody in the County s name and safekeeping procedures. All of the County s investments are held by the counterparty s trust department in the County s name. Interest Rate Risk As of September 30, 2015, the County had the following investments and maturities: Investment Maturities (in Years) Less than Investment Type Fair Value Greater than 6* U.S Agencies Fixed $221,596,693 $ 46,468,363 $175,128,330 $ - Adjustable Mortgages * 75,889, ,889,637 Fixed Mortgages ** 4,468,192-4,468,192 - GNMA Mortgages Adjustable * 175,588, ,588,508 Certificates of Deposit 225,000,000 55,000, ,000,000 - FLGIT 25,565,922 25,565, SBA 47,025 47, Total $728,155,977 $127,081,310 $349,596,522 $ 251,478,145 * Investment securities categorized as greater than 6 years are adjustable rate securities that have an estimated average return of principal up to 30 years. ** Represents 20 year fixed rate mortgages that pay principal and interest monthly and have an average life of five years. The County limits interest rate risk by maintaining an investment portfolio with limited volatility. The policy states that no security shall have an estimated average return of principal exceeding five years, unless the investment is an adjustable rate security. Adjustable rate securities may have an estimated average return of principal up to 30 years. In accordance with the County s investment policy, the County invests in mortgage backed securities and other similar investments. In management s opinion, the credit and legal risk associated with these investments is comparable to other investments within the portfolio. The collateralized mortgage backed securities are based on cash flows from the underlying mortgages. The principal repayment portions could be sensitive to prepayment by mortgagees, which may be affected by interest rate changes. The prepayments and anticipated interest rate changes can therefore affect the fair values of the investments. 87

90 Notes to Financial Statements September 30, 2015 Credit Risk The County s investment policy limits credit risk by restricting the authorized investments to those illustrated in Note 1, Section D. The following table illustrates the credit quality distribution with credit exposure as a percentage of the County s investment securities. Credit Ratings Percent of Investment Type S&P/Moody's/Fitch Portfolio GNMA * % U.S. Agencies Federal Home Loan Bank AA+/Aaa 3.49% Federal Home Loan Mortgage Corporation AA+/Aaa 7.44% Federal National Mortgage Association AA+/Aaa 21.24% Federal Farm Credit Bank AA+/Aaa 9.30% Bank Certificates of Deposit (Chapter 280) % SBA (Florida Prime) AAAm 0.01% FLGIT AAAf 3.51% * GNMA is backed by the full faith of the U.S. Government. The County s investment policy establishes limitations on portfolio composition, both by investment type and dealer, in order to control concentration of credit risk. The following maximum limits are guidelines established for diversification by instrument: Repurchase Agreements 50% Certificates of Deposits 40% U.S. Agencies 65% State Investment Pools 75% Commercial Paper 25% Bankers' Acceptances 25% The policy provides that no more than 25% of the entire portfolio may be placed with any one security dealer or bank. NOTE 4. RECEIVABLES Governmental funds report unearned revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Both governmental and enterprise funds defer revenue recognition in connection with resources that have been received, but not yet earned. Accounts receivable for governmental activities are net of an estimated collection allowance of $14,980,634. Accounts receivable for business-type activities does not include an estimated collection allowance. All receivable balances are expected to be received within the subsequent year. 88

91 Notes to Financial Statements September 30, 2015 NOTE 5. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The following is a schedule of interfund receivables and payables as of September 30, 2015: A. DUE TO/FROM OTHER FUNDS: Due to General Fund from: Nonmajor Governmental funds $ 196,961 Total due to General Fund $ 196,961 The amount above is expected to be repaid within one year and resulted from amounts owed between elected official/agencies or amounts borrowed to cover cash deficits at year end. B. ADVANCES TO/FROM OTHER FUNDS Advances to Nonmajor Governmental Funds General Fund $ 2,143,000 Total advances to Nonmajor Governmental Funds $ 2,143,000 The nonmajor governmental amount resulted from a $2,143,000 advance to provide interim financing for the Mid- County Tax Collector Office Project. The whole amount of $2,143,000 of the above capital improvement advance is expected to be repaid within the coming year. C. INTERFUND TRANSFERS Transfers to General Fund from: Emergency Services Special Revenue $ 1,064,434 Nonmajor Governmental Funds 8,944,097 Utillity System 2,003,711 Solid Waste System 335,067 Stormwater Utility 361,361 Internal Service Funds 1,133,143 Total transfers to General Fund $ 13,841,813 Transfers to Emergency Services Special Revenue from Nonmajor Governmental Funds $ 176,820 Utillity System 338,573 Solid Waste System 65,784 Stormwater Utility 52,113 Total transfers to Emergency Services Special Revenue $ 633,290 Transfers to Capital Revenue Programs Special Revenue from Nonmajor Governmental Funds $ 642,531 Totals transfers to Capital Revenue Programs Special Revenue $ 642,531 Transfers to Infrastructure One Cent Sales Tax Capital Projects from Capital Revenue Programs Special Revenue 12,744,890 Total transfers to Infrastructure Once Cent Sales Tax Capital Projects $ 12,744,890 89

92 Notes to Financial Statements September 30, 2015 Transfers to Debt Proceeds Capital Projects from Nonmajor Governmental Funds 3,718,906 Total transfers to Debt Proceeds Capital Projects $ 3,718,906 Transfers to Nonmajor Governmental Funds from General Fund $ 15,433,707 Emergency Services Special Revenue 1,968,653 Capital Revenue Programs Special Revenue 26,341,109 Debt Proceeds Capital Projects 2,571,080 Nonmajor Governmental Funds 18,774,022 Utillity System 131,180 Solid Waste System 66,174 Stormwater Utility 16,522 Transportation Authority 1,055 Internal Service Funds 1,346,071 Total transfers to Nonmajor Governmental Funds $ 66,649,573 Transfers to Utility System from Solid Waste System $ 13,000 Stormwater Utility 16,211 Total transfers to Utility System $ 29,211 Transfers to Transportation Authority General Fund 18,981,425 Total transfers to Transportation Authority $ 18,981,425 Transfers to Stormwater Utility from Nonmajor Governmental Funds 66,330 Total transfers to Stormwater Utility $ 66,330 Transfers to Internal Service Funds from General Fund 1,597,370 Total transfers to Internal Service Funds $ 1,597,370 Total transfers In $ 118,905,339 All transfers were used to either (1) move revenues from the fund that statute or budget requires to collect them, to the fund that statute or budget requires to expend them; (2) move receipts restricted to debt service from the funds collecting receipts to the debt service fund as debt service payments become due; or (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. 90

93 Notes to Financial Statements September 30, 2015 NOTE 6. CAPITAL ASSETS A. CAPITAL ASSET ACTIVITY Capital assets activity for the year ended September 30, 2015 was as follows: Balance Balance 9/30/2014 Additions Deletions 9/30/2015 Governmental Activities: Capital assets, not being depreciated or amortized: Land $ 401,485,436 $ 4,692,485 $ 604,918 $ 405,573,003 Land Rights 924, ,937 Right of Way/Easements 24,057, ,057,821 Construction in progress 179,617,710 92,907,101 81,941, ,583,439 Total Capital assets, not being depreciated or amortized 606,085,904 97,599,586 82,546, ,139,200 Capital assets, being depreciated or amortized: Buildings and building improvements 281,548,629 32,599,899 4,402, ,745,607 Equipment 176,718,705 19,265,592 22,567, ,417,017 Infrastructure 1,272,681,490 42,666,568-1,315,348,058 Softw are 22,422,354 2,623,494-25,045,848 Total capital assets, being depreciated or amortized 1,753,371,178 97,155,553 26,970,201 1,823,556,530 Less accumulated depreciation or amortization for: Buildings and building improvements 133,873,581 9,949,692 4,402, ,420,352 Equipment 138,067,632 12,095,556 19,929, ,233,726 Infrastructure 695,074,435 47,504, ,578,714 Softw are 17,731,306 3,441,031-21,172,337 Total accumulated depreciation or amortization 984,746,954 72,990,558 24,332,383 1,033,405,129 Total capital assets, being depreciated or amortized, net 768,624,224 24,164,995 2,637, ,151,401 Governmental activities capital assets, net $1,374,710,128 $121,764,581 $ 85,184,108 $1,411,290,601 91

94 Notes to Financial Statements September 30, 2015 Balance Balance 9/30/2014 Additions Deletions 9/30/2015 Business-type Activities Capital assets, not being depreciated or amortized: Land Utility System $ 19,350,446 $ - $ - $ 19,350,446 Solid Waste System 27,609, ,609,210 Stormw ater Utility 15,155, ,155,863 Transportation Authority 2,265, ,265,535 Total 64,381, ,381,054 Right of Way/Easements Utility System 399, ,637 Total 399, ,637 Construction In Progress Utility System 25,662,411 22,925,533 15,240,090 33,347,854 Solid Waste System 2,603, ,506 46,034 3,222,459 Stormw ater Utility 3,347,575 3,667,403 1,527,610 5,487,368 Transportation Authority 371, ,390 64, ,646 Total 31,985,962 27,443,832 16,878,467 42,551,327 Total capital assets, not being depreciated or amortized 96,766,653 27,443,832 16,878, ,332,018 Capital assets, being depreciated or amortized: Buildings and building improvements Utility System 109,202, , ,840,373 Solid Waste System 5,287, ,287,196 Stormw ater Utility 588, ,920 Transportation Authority 9,463, ,463,109 Total 124,542, , ,179,598 Equipment Utility System 52,959, ,271 68,550 53,054,656 Solid Waste System 615,845 7,638 49, ,814 Stormw ater Utility 110,980 14,805 16, ,205 Transportation Authority 34,712, , ,725 34,240,119 Total 88,399, , ,524 87,977,794 Infrastructure Utility System 735,816,361 16,803, ,620,206 Solid Waste System 94,673,740 46,034-94,719,774 Stormw ater Utility 116,324,253 2,009, ,333,679 Transportation Authority 4,629,207 1,302-4,630,509 Total 951,443,561 18,860, ,304,168 Software Transportation Authority 1,964, ,964,685 Total 1,964, ,964,685 Water, Timber Rights Utility System 27,027, ,027,363 Total 27,027, ,027,363 Total capital assets, being depreciated or amortized $1,193,377,030 $ 19,192,536 $ 1,115,958 $1,211,453,608 92

95 Notes to Financial Statements September 30, 2015 Balance Balance 9/30/2014 Additions Deletions 9/30/2015 Less accumulated depreciation or amortization for: Buildings and building improvements Utility System $ 62,467,817 $ 4,169,243 $ 362,434 $ 66,274,626 Solid Waste System 3,939,480 69,375-4,008,855 Stormw ater Utility 262,076 29, ,302 Transportation Authority 3,137, ,649-3,459,988 Total 69,806,712 4,590, ,434 74,034,771 Equipment Utility System 38,451,827 1,272,543 64,835 39,659,535 Solid Waste System 455,280 33,417 49, ,028 Stormw ater Utility 76,547 13,440 16,580 73,407 Transportation Authority 17,645,136 2,571, ,725 19,597,520 Total 56,628,790 3,890, ,809 59,769,490 Infrastructure Utility System 228,313,112 17,732, ,045,736 Solid Waste System 26,236,036 2,287,389-28,523,425 Stormw ater Utility 40,188,956 5,032,285-45,221,241 Transportation Authority 1,308, ,676-1,581,633 Total 296,047,061 25,324, ,372,035 Software Transportation Authority 982, ,669-1,263,011 Total 982, ,669-1,263,011 Water, Timber Rights Utility System 21,423,271 1,157,366-22,580,637 Total 21,423,271 1,157,366-22,580,637 Total accumulated depreciation or amortization 444,888,176 35,244,011 1,112, ,019,944 Total capital assets being depreciated or amortized, net 748,488,854 (16,051,475) 3, ,433,664 Business-type activities capital assets, net $ 845,255,507 $ 11,392,357 $ 16,882,182 $ 839,765,682 B. CONSTRUCTION IN PROGRESS Construction in progress for business-type activities represented the following: The Utility System's construction in progress at year end consisted of $33,347,854 in the engineering and construction costs associated with various water and wastewater projects. The funding for these improvements includes capacity fees (formerly called impact fees), user rates, state revolving fund (SRF) loans and bond proceeds. Construction in progress for the Solid Waste System at year end of $3,222,459 included costs associated with design/engineering and construction costs for various Central County Solid Waste Disposal Complex projects. The funding for these improvements includes tipping fees and interest earnings. Construction in progress for the Stormwater Utility at year end consisted of $5,487,368 in design and construction of Stormwater management improvements in various basins throughout the County. The County has issued commercial paper, capital assessments and bonds to finance these improvements. Construction in progress for the Transportation Authority at year end consisted of $493,646 in costs related to public transportation projects. These projects are funded through capital grants. 93

96 Notes to Financial Statements September 30, 2015 Construction in progress for governmental activities represented the following: Construction in progress for general government at year end consisted of $184,570,560 in public safety, physical environment, transportation, and parks and recreation related capital improvements. Construction in progress for information technology at year end consisted of $6,012,879 in design and installation of enterprise-wide management information systems and land information systems. C. COMMITMENTS As of September 30, 2015, the County had open construction commitments and other significant purchase commitments totaling $103,257,002 for the following funds: Governmental Activities Debt Proceeds Fund $ 14,041,455 Infrastructure One Cent Sales Tax Capital Projects Fund 22,633,521 Nonmajor capital projects funds 35,982,904 Total commitments governmental activities $ 72,657,880 Business-type Activities Utility System $ 21,223,184 Solid Waste System 1,386,756 Stormwater Utility 7,690,245 Transportation Authority 298,937 Total commitments - business-type activities $ 30,599,122 D. DEPRECIATION Depreciation expense was charged to functions of the County as follows: Governmental Activities General government $ 7,228,661 Public safety 6,793,993 Physical environment 1,182,208 Transportation 42,458,683 Economic environment 3,956 Human services 275,200 Culture and recreation 6,778,261 Internal service funds 8,269,596 Total depreciation expense governmental activities $ 72,990,558 Business-type Activities Utility System $ 24,331,776 Solid Waste System 2,390,181 Stormwater Utility 5,074,951 Transportation Authority 3,447,103 Total depreciation expense business-type activities $ 35,244,011 94

97 Notes to Financial Statements September 30, 2015 NOTE 7. LONG-TERM DEBT Governmental Activities General long-term debt at year end was composed of the following debt issues: 9B9BNon-self-supporting Revenue Bonds The County issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding at year end were as follows: Interest Original Outstanding Issue Purpose/Revenue Pledged Maturity Rate Amount Amount Limited Ad Valorem Tax Bonds, Series 2005 To acquire and protect certain environmentally sensitive lands within the County. Secured by a pledge of the Limited Ad Valorem Tax Revenues % to 3.85% $17,165,000 $ 5,942,673 Communication Services Tax Revenue Bonds, Series 2006 To finance the construction of Bahia Vista Street as well as other related improvements. Secured by a pledge of the Communications Services Tax Revenues % 17,705, ,000 Limited Ad Valorem Tax Bonds, Series 2008 To acquire and protect certain environmentally sensitive lands within the County. Secured by a pledge of the Limited Ad Valorem Tax Revenues % to 4.00% 83,605,000 1,355,000 Infrastructure Sales Surtax Revenue Bonds, Series 2008A To finance various capital infrastructure projects. Secured by a pledge of the Infrastructure Sales Surtax Revenues % to 5.00% 73,995,000 14,340,000 Infrastructure Sales Surtax Revenue Bonds, Series 2008B To finance various capital infrastructure projects. Secured by a pledge of the Infrastructure Sales Surtax Revenues % to 5.00% 69,895,000 8,830,000 Capital Improvement Revenue Bonds, Series 2010A (Federally Taxable-Build America Bonds-Direct Subsidy) To finance a portion of the cost of the acquisition, construction and renovation of a major league baseball spring training facility, including practice fields and other ancillary facilities. Secured by the Half-Cent Sales Tax Revenues % to 6.696% 9,380,000 7,382,103 95

98 Notes to Financial Statements September 30, 2015 Interest Original Outstanding Issue Purpose/Revenue Pledged Maturity Rate Amount Amount Capital Improvement Revenue Bonds, Series 2010B (Federally Taxable-Build America Bonds Recovery Zone Economic Development Bonds- Direct Subsidy) To finance a portion of the cost of the acquisition, construction and renovation of a major league baseball spring training facility, including practice fields and other ancillary facilities. Secured by the Half-Cent Sales Tax Revenues % $10,270,000 $ 10,219,642 Communication Services Tax Revenue Bonds, Series 2010 (Federally Taxable-Build America Bond-Direct Subsidy To finance or refinance the acquistion, construction and equipping of an aquatic nature center and related improvements. Secured by a pledge of the Communications Services Tax Revenues % to 7.24% 18,760,000 17,102,642 Second Guaranteed Entitlement Revenue Bonds, Series 2013 To finance the planning, engineering, constructing, reconstructing and equipping of an emergency operations center for the County. Secured by the Second Guaranteed Entitlement funds portion of the Revenue Sharing Trust Fund % to 5.00% 17,245,000 16,473,363 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 To advance refund all or a portion of the County's Infrastructure Sales Surtax Revenue Bonds, Series 2008B maturing on and after October 1, Secured by a pledge of the Infrastructure Sales Surtax Revenues % 37,355,000 43,657,752 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 To advance refund all of the Series 2008A Bonds maturing on and after October Secured by a pledge of the Infrastructure Sales Surtax Revenues % to 5.00% 33,490,000 38,653,002 Total Non-self-supporting Revenue Bonds $ 164,801,177 96

99 Notes to Financial Statements September 30, 2015 Commercial Paper Interest Original Outstanding Issue Purpose Maturity Rate Amount Amount Florida Local Government Finance Commission, Pooled Commercial Paper Program General government capital projects, including building, roads, and environmental lands % N/A $ 18,188,000 Commercial paper loans are borrowed for a period of up to five years. The principal payments are set by Resolution for each loan during the financing process. A Note is issued which defines the principal repayment dates and amounts. The variable interest rate is paid based on the sales of taxable commercial paper and is reset on a monthly basis. Notes Payable Governmental Activities Interest Original Outstanding Issue Purpose/Revenue Pledge Maturity Rate Amount Amount Five Points Property Note Five Points property purchased % $ 1,135,188 $ 749,647 for the new library Limited Ad Valorem Tax Refunding Bond Series 2010 (Bank Term Loan) To refund the County's Limited Ad Valorem Tax Bonds, Series Secured by a pledge of the Limited Ad Valorem Tax Revenues % 15,360,000 6,780,000 Capital Improvement Revenue Refunding Note Series 2012 (Bank Term Loan) First Guaranteed Entitlement Revenue Refunding Note, Series 2012 (Bank Term Loan) To refund the County's Sales Tax Revenue Bonds, Series Secured by the Half-Cent Sales Tax Revenues To refund the County's Limited Ad Valorem Tax Bonds, Series Secured by the County's "Guaranteed Entitlement" portion of the revenue sharing trust funds of the State % 4,377,000 1,681, % 5,925,000 3,460,000 Revenue Note, Series 2013A (Bank Term Loan) To finance or refinance all or a portion of the costs of the acquisition and construction of certain improvements to Siesta Public Beach. Secured by a lien upon and a pledge of the Non-Ad Valorem Revenues actually budgeted and appropriated, including income from investment of net revenues % 12,543,000 10,512,000 97

100 Notes to Financial Statements September 30, 2015 Interest Original Outstanding Issue Purpose/Revenue Pledge Maturity Rate Amount Amount Revenue Note, Series 2014A (Bank Term Loan) To finance or refinance all or a portion of the costs of the % $ 10,044,000 $ 8,647,000 acquisition and construction of certain improvements to Bee Ridge Road. Secured by a lien upon and a pledge of the Non-Ad Valorem Revenues actually budgeted and appropriated, including income from investment of net revenues Communications Services Tax Revenue Refunding Note, Series 2014 (Bank Term Loan) To advance refund a portion of the County's Communications Services Tax Revenue Bonds, Series 2005A and the County's Communications Services Tax Revenue Bonds, Series 2005B. Secured by a pledge of the revenues from the Communications Services Tax % 17,690,000 17,530,000 Five-Cent Local Option Fuel Tax Revenue Refunding Note, Series 2014 (Bank Term Loan) Limited Ad Valorem Tax Refunding Bond (Environmentally Sensitive Lands and Parkland Program) Series 2014 (Bank Term Loan) To advance refund a portion of the County's Five Cent Local Option Fuel Tax Revenue Bonds, Series Secured by a pledge of the revenues from the Five Cent Local Option Fuel Tax To advance refund a portion of the county's Limited Ad Valorem Tax Bonds (Environmentally Senstive Lands and Parkland Program), Series Secured by a pledge of the Limited Ad Valorem Tax Revenues % 9,255,000 9,165, % 70,740,000 69,410,000 Revenue Note, Series 2014B To finance or refinance all or a % 17,955,000 16,430,000 portion of the costs of improvements to the issuer's 800MHz critical public safety communication system and radios. Secured by a pledge of the Limited Ad Valorem Tax Revenues Communications Services Tax Revenue Refunding Note, Series 2015 To advance refund a portion of the County's Communications Services Tax Revenue Bonds, Series Secured by a pledge of the revenues from the Communications Services Tax % 11,430,000 11,430,000 Total Notes Payable-Governmental Activities $ 155,794,647 98

101 Notes to Financial Statements September 30, 2015 Business-type Activity Debt Long-term debt of business-type activities at year end consisted of the following issues: Self-supporting Revenue Bonds The County issues bonds where the government pledges income derived from the acquired or constructed assets to pay debt service. Business-type Activity Debt Interest Original Outstanding Issue Purpose Maturity Rate Amount Amount Utility System Revenue Bonds, Series 2007 To acquire and construct capital improvements to the Utility % to 5.00% $48,650,000 $ 48,771,083 System Utility System Revenue Bonds, Series 2010 To finance and/or reimburse all or a portion of the costs of the design, acquisition, installation and construction of various improvements to the County's Utility System, and to refinance a portion of Draw Note No.A % to 7.401% 46,655,000 46,655,000 Utility System Revenue Refunding Bonds, Series 2011A To current refund all of the Utility System Series 2002A and Series 2002B Bonds % to 5.00% 13,425,000 13,978,195 Utility System Revenue Refunding Bonds, Series 2011B To advance refund a portion of the Utility System Series 2002C Bonds % to 4.00% 4,435,000 3,278,843 Utility System Revenue Bonds, Series 2013 To finance the acquisition of facilities expanding the County's Utility System % to 5.00% 35,600,000 36,332,724 Total Self-supporting Revenue Bonds $149,015,845 Notes Payable Business-type Activities Notes Payable Issue State of Florida - State Revolving Fund Loan Purpose To finance the cost of construction for the Bee Ridge Water Reclamation Facility Expansion and the Septic System Replacement Program Interest Maturity Rate % to 3.11% Original Amount Outstanding Amount $34,188,406 $ 13,371,725 State of Florida - State Revolving Fund Loan To finance the cost of construction for the Phillipi Creek Collection and Transmission Facilities Area F % 5,737,905 3,347,535 99

102 Notes to Financial Statements September 30, 2015 Notes Payable Issue State of Florida - State Revolving Fund Loan Purpose To finance the cost of construction for the Phillipi Creek Collection and Transmission Facilities Area K Interest Original Outstanding Maturity Rate Amount Amount % $15,373,965 $ 11,790,647 Utility System Revenue Refunding Note, Series 2012 Subordinate Utility System Revenue Refunding Note, Series 2012 To refund a portion of the Utility Revenue Refunding Bond, Series 2011D and certain loans from the State of Florida Department of Environmental Protection To refund all or a portion of certain loans from the State of Florida Department of Environmental Protection % 50,290,000 35,015, % 15,720,000 12,410,000 State of Florida - State Revolving Fund Loan To finance the cost of construction for the Phillipi Creek Collection and Transmission Facilities Area N and Phase 2 Vacuum Collection System % 5,762,351 5,486,115 State of Florida - State Revolving Fund Loan Utility System Revenue Refunding Note, Series 2015 To finance the cost of construction for the Phillipi Creek Collection and Transmission Facilities Area O and P Vacuum Collection System To refund the County's Utility System Revenue Refunding Bonds, Series 2005A % to 2.550% 16,260,781 1,375, % 28,000,000 28,000,000 Solid Waste Revenue Refunding Note, Series 2015 To refund the County's Solid Waste System Revenue Refunding Bonds, Series % 21,690,000 21,690,000 Total Notes Payable Business-type. $ 132,486,

103 Notes to Financial Statements September 30, 2015 Summary of Debt Service Requirements to Maturity The total annual debt service requirements to maturity of long-term bonds, notes and commercial paper debt were as follows: Governmental Activities General Notes and Obligation Total Year Ended Loans Commercial Revenue Total Principal & September 30 Payable Paper Bonds Interest Interest 2016 $ 10,013,010 $ 5,965,000 $ 13,070,000 $ 12,626,986 $ 41,674, ,603,255 1,130,000 12,275,000 11,516,121 36,524, ,020,751 1,156,000 12,675,000 10,637,601 35,489, ,606,513 6,523,000 12,680,000 9,726,814 40,536, ,532,555 3,414,000 11,620,000 8,578,954 37,145, ,458,287-53,645,000 27,999, ,103, ,560,276-9,195,000 12,761,547 51,516, ,370,000 7,627,801 18,997, ,160,000 3,583,580 17,743, ,930, ,750 3,227, ,794,647 18,188, ,620,000 $ 105,356,983 $432,959,630 Less amount representing: Unamortized bond discounts - - (292,250) Plus amount representing: Unamortized bond premium ,473,427 Principal $155,794,647 $18,188,000 $164,801,177 The amounts available in the Debt Service Funds to pay revenue bonds, notes and commercial paper are $2,104,368 for bonds, $867,098 for notes and $195,117 commercial paper. Business-Type Activities Enterprise Enterprise Total Year Ended Enterprise Commercial Revenue Total Long-term September 30 Notes Paper Bonds Interest Debt 2016 $ 14,077,083 $ - $ 1,025,000 $ 11,118,426 $ 26,220, ,398,185-1,065,000 10,763,208 26,226, ,716,180-1,105,000 10,403,201 26,224, ,406,121-1,795,000 10,027,671 26,228, ,548,064-1,870,000 9,627,142 26,045, ,729,003-10,795,000 42,008, ,532, ,346,634-27,900,000 34,389,806 68,636, ,265,097-41,990,000 24,754,502 68,009, ,740,000 12,199,079 64,939, ,240, ,700 6,809, ,486, ,525,000 $165,861,278 $444,872,645 Plus Unamortized premiums - - 2,490,845 Net debt $132,486,367 $ - $149,015,

104 Notes to Financial Statements September 30, 2015 Debt Obligations Conduit debt obligations are certain limited-obligation revenue bonds or similar debt instruments issued for the specific purpose of providing capital financing for a specific third party that is not a part of the County s financial reporting entity. To provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest, the County has issued Industrial Development Bonds. The County is authorized by the provisions of Chapter 159, Part II, Florida Statutes to make and execute financing agreements, contracts, deeds and other instruments to finance the acquisition, construction and equipping of projects that may be able to promote effective and efficient pollution control in the County by issuing revenue bonds. At year end, there were eight series of Industrial Revenue Bonds outstanding, with an aggregate principal amount payable of $45,825,201. The Sarasota County Health Facilities Authority was created by County Ordinance No , enacted by the Board of County Commissioners of Sarasota County on June 21, 1977, pursuant to the provisions of the Health Facilities Authorities Law, Section et seq., Florida Statutes. Pursuant to the Act, the Authority is authorized to acquire, construct and equip projects suitable for use by not-for-profit health facilities in the provision of nursing and like care services; to issue its revenue bonds to finance and refinance the cost of such projects; and to secure such revenue bonds by a pledge of the revenues derived from the projects and by mortgages and security interests in such projects. The Authority has no taxing power and approval by the Board of County Commissions is required prior to the creation of any indebtedness by the Authority. At year end, there were three series of Health Facilities Authority Bonds outstanding, with an aggregate principal amount payable of $115,865,000. The Industrial Development Bonds and the Health Facilities Bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership for the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Debt Issuance $37,355,000 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 On October 16, 2014 the County issued Infrastructure Sales Surtax Revenue Refunding Bonds in the amount of $37,355,000 to advance refund all or a portion of the County s Infrastructure Sales Surtax Revenue Bonds, Series 2008B maturing on and after October 1, The 2014 bonds are secured by a pledge of the Infrastructure Sales Surtax Revenues and have an interest rate of 5.0%. This transaction had an aggregate difference in debt service of $3,854,873 and a net present value savings to the County of $3,448,340. $17,955,000 Revenue Note, Series 2014B On October 24, 2014 the County issued a Bank Term Loan, Revenue Note, Series 2014B in the amount of $17,955,000 to finance the cost of improvements to the Issuer s 800MHz critical public safety communication system and acquisition of radios. The 2014B note is secured by a pledge of legally available non-ad valorem revenues and has an interest rate of 2.30% $70,740,000 Limited Ad Valorem Tax Refunding Bond (Environmentally Sensitive Lands and Parkland Program), Series 2014 On December 18, 2014 the County issued a Bank Term Loan, Limited Ad Valorem Tax Refunding Bond, Series 2014 in the amount of $70,740,000 to advance refund the Limited Ad Valorem Tax Bonds (Environmentally Sensitive Lands and Parkland Program), Series 2008 maturing on and after October 1, The 2014 bonds are secured by a lien upon the Limited Tax and have an interest rate of 2.70%. This transaction had an aggregate difference in debt service of $5,901,676 and a net present value savings to the County of $4,899,

105 Notes to Financial Statements September 30, 2015 $11,430,000 Communications Services Tax Revenue Refunding Note, Series 2015 On March 12, 2015 the County issued a Bank Term Loan, Communications Services Tax Revenue Refunding Note, Series 2015 in the amount of $11,430,000 to advance refund the Communications Services Tax Revenue Bonds, Series 2006 maturing on and after October 1, The 2015 note is secured by a pledge of the Communications Services Tax Revenues and has an interest rate of 2.20%. This transaction had an aggregate difference in debt service of $1,001,446 and a net present value savings to the County of $888,521. $33,490,000 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 On March 25, 2015 the County issued Infrastructure Sales Surtax Revenue Refunding Bonds in the amount of $33,490,000 to advance refund all or a portion of the County s Infrastructure Sales Surtax Revenue Bonds, Series 2008A maturing on and after October 1, The 2015 bonds are secured by a pledge of the Infrastructure Sales Surtax Revenues and have an interest rate of 4.0% to 5.0% This transaction had an aggregate difference in debt service of $1,917,286 and a net present value savings to the County of $1,688,755. $28,000,000 Utility System Revenue Refunding Note, Series 2015 On July 7, 2015 the County issued a Bank Term Loan, Utility System Revenue Refunding Note, Series 2015 in the amount of $28,000,000 to current refund the County s Utility System Revenue Refunding Bond, Series 2005A. The 2015 note is secured by a lien upon and pledge of the net revenues derived by the operation of the Utility System and from lawfully available Impact Fees and has an interest rate of 2.62%. This transaction had an aggregate difference in debt service of $17,289,747 and a net present value savings to the County of $4,743,974. $21,690,000 Solid Waste System Revenue Refunding Note, Series 2015 On July 7, 2015 the County issued a Bank Term Loan, Solid Waste System Revenue Refunding Note, Series 2015 in the amount of $21,690,000 to current refund the County s Solid Waste System Revenue Refunding Bonds, Series The 2015 note is secured by a pledge on the net revenues derived from the ownership and operation of the Solid Waste System and has an interest rate of 2.5%. This transaction had an aggregate difference in debt service of $2,451,258 and a net present value savings to the County of $1,640,897. Legal Debt Margin The County has no legal debt limit as set forth in the constitution of the State of Florida and the Florida Statutes. Restrictive Debt Covenants Governmental Activities Official statements and County resolutions authorizing the general obligation and revenue bonds establish certain accounts and determine the order in which certain revenues are to be deposited into those accounts. All required balances were maintained at year end. In connection with the commercial paper debt the County has covenanted to appropriate in its annual budget, from Non-Ad Valorem Revenues lawfully available, amounts sufficient to pay the debt service in each fiscal year. The County was in compliance with this covenant to budget and appropriate at year end. Business-type Activities The Utility System bonds and notes and the Solid Waste System note were secured by a pledge on the net revenues of each enterprise system as defined by their official statements. The County has covenanted in the resolution authorizing the Utility System Revenue Bonds, Series 2007, Series 2010, Series 2011A, Series 2011B, Series 2013, Utility System Revenue Note, Series 2012, Series 2013 and Series 2015 to fix, maintain and collect always, such fees, rates, rentals and other charges for the use of the products, services and facilities of the System which in each bond year (i) will provide revenues, excluding all capacity fees (formerly impact fees) debt service components, in an amount not less than the aggregate amount needed to pay 100% of the debt service requirement for said bond year, 100% of the costs of operation and maintenance of the systems, plus all required 103

106 Notes to Financial Statements September 30, 2015 deposits to the reserve account and the renewal, replacement and improvement fund and (ii) will also provide revenues, including all capacity fees (formerly impact fees) debt service components as shall be sufficient to pay 120% of the debt service requirement for said bond year, 100% of the cost of operation and maintenance of the system, plus all required deposits to the reserve account and the renewal, replacement and improvement fund. The Utility System Funds were in compliance with these covenants at year end. The County has covenanted in the resolution authorizing the Solid Waste System Revenue Refunding Note, Series 2015, to fix, establish and maintain such rates and will collect such fees, rentals and other charges for the use of the services and facilities of the system and revise the same from time to time, whenever necessary, as will always provide revenues in each bond year as shall be sufficient to pay 120% of the current annual debt service requirement, 100% of the cost of operation and maintenance of the system and all required deposits to the reserve account and the renewal and replacement account required in the resolution. Such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide net revenues for such purposes. The Solid Waste System Funds were in compliance with these covenants at year end. Arbitrage Rebate Liability The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds after August 31, Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service at least every five years. At September 30, 2015 the County reported a total arbitrage rebate liability of $137,262 reported as $121,380 in governmental activities and $15,882 in business-type activities. Interest Capitalization The County incurred $12,712,201 in interest costs in its business-type activities. In addition, $441,870 was capitalized. The County earned $4,439,703 in interest income in its enterprise funds. 1B1BChanges in Long-term Liabilities The following is a summary of changes in long-term liabilities for the year ended September 30, 2015: Governmental Activities Amounts Due Beginning Ending Within One Balance Additions Retirements Balance Year Revenue bonds $245,495,951 $ 84,183,061 $ 164,877,835 $ 164,801,177 $ 13,070,000 Commercial paper debt 13,747,000 6,066,000 1,625,000 18,188,000 5,965,000 Notes payable 63,898, ,125,000 8,229, ,794,647 10,013,010 Compensated absences 21,390,084 18,342,199 17,794,800 21,937,483 15,321,746 Rebatable arbitrage 81,252 40, ,380 - Claims and judgments 19,105,448 42,166,452 41,537,849 19,734,051 8,016,308 Net Pension Liability (1) 120,639,219 57,992,372 3,598, ,033,438 - Total long-term debt governmental activities $484,357,607 $ 308,915,212 $ 237,662,643 $ 555,610,176 $ 52,386,064 (1) The beginning balance resulted from the implementation of GASB Statement No. 68 Additions to the revenue bonds are comprised of two new bond issues for $70,845,000 and current year amortization of the bond debt discounts. Retirement of revenue bonds includes current year principal payments, amortization of bond premiums and the partial advance refunding of Communication Service Tax Bond, Series 2006, Limited Ad Valorem Tax Bond, Series 2008 and Infrastructure Sales Surtax Revenue Bonds, Series 2008A and 2008B. 104

107 Notes to Financial Statements September 30, 2015 Additions to commercial paper is for one new note. Additions to notes payable are the issuance of three new bank term loans for a total of $100,125,000. Retirements include current year principal payments. Other long-term liabilities, including compensated absences and rebatable arbitrage, are typically liquidated by the individual fund to which the liability is directly associated. Specifically, for compensated absences, the General Fund liquidates 94%, with the Emergency Services Funds, and Internal Service Funds liquidating 4%, and 1% respectively. The remaining 1% is liquidated by other special revenue funds. Claims and judgments are liquidated by the respective internal service self-insurance fund. Business-type Activities Amounts Due Beginning Ending Within One Balance Additions Retirements Balance Year Revenue bonds $ 216,645,204 $ - $ 67,629,359 $ 149,015,845 $ 1,025,000 Commercial paper debt 1,057,000-1,057, Notes and loans payable 90,233,309 50,756,857 8,503, ,486,367 14,077,083 Compensated absences 1,957,221 1,607,750 1,720,131 1,844,840 1,715,701 Rebatable arbitrage 12,028 3,854-15,882 - Landfill closure 25,476,201 2,521, ,144 27,431, ,973 Net pension Liability (1) 8,059,588 4,362,690-12,422,278 - Total long-term debt business-type activities $ 343,440,551 $ 59,252,407 $ 79,476,433 $ 323,216,525 $ 17,315,757 (1) The beginning balance resulted from the implementation of GASB Statement No. 68 Retirement of revenue bonds includes current year principal payments, amortization of bond premiums and the advance refunding of the Utility System Revenue Refunding Bonds, Series 2005A. Additions to notes payable are the issuance of two new bank term loans for a total of $49,690,000 and proceeds and capitalized interest for a SRF loan. Retirements include current year principal payments. Other long-term liabilities, including compensated absences and rebatable arbitrage, are typically liquidated by the individual fund to which the liability is directly associated. Claims and judgments are liquidated by the respective internal service self-insurance fund. NOTE 8. LEASE OBLIGATIONS Operating Leases The County leases transportation equipment, office space and office equipment under operating leases. These leases expire or are cancelable within the next fiscal year. In most cases the County expects that in the normal course of operations, these leases will be renewed or replaced by other leases. Total rental expenditures for all operating leases within governmental activities for the year ended September 30, 2015 were approximately $1,541,936. Total rental expenditures for all operating leases within business-type activities for the year ended September 30, 2015 were approximately $818,

108 Notes to Financial Statements September 30, 2015 NOTE 9. LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the Solid Waste System to place a final cover on its Bee Ridge and Central County landfill sites when it stops accepting waste and to perform certain maintenance and monitoring functions at each site for thirty years after closure. Although closure and post closure care costs will be paid only near or after the date that the landfill stops accepting waste, the System reports a portion of these closure and post closure costs each balance sheet date. The $27,431,313 reported as landfill closure and post closure care liability at year end, represents the cumulative amount reported to date based on the use of one hundred percent of the estimated capacity of the Bee Ridge landfill and percent of the estimated capacity of the Central County landfill. The System will recognize the remaining estimated cost of care of $20,373,665 as the remaining estimated capacity at the Central County landfill is filled. These amounts are based on what it would cost to perform all closure and post closure care in The System closed the Bee Ridge landfill in the year 1998 and expects to close the Central County landfill during fiscal year 2044, leaving 28 years of estimated remaining life. These amounts are estimates and the actual costs are subject to change resulting from inflation, deflation, technology, or changes in applicable laws or regulations. The System expects that future inflation costs will be paid from interest earnings on annual contributions to a fund to finance closure and post closure care. However, if interest earnings are inadequate or additional post closure care requirements are determined, these costs may need to be covered by charges to future landfill users or from future tax revenue. The System is required by state and federal laws and regulations to make annual contributions to a fund to finance closure and post closure care. The System uses the financial test to demonstrate financial assurance, as specified on Subpart H of 40 CFR Part 264, as adopted by reference in Rule , Florida Administrative Code. The System is in compliance with these requirements at year end. NOTE 10. RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County has established various self-insurance internal service funds. These funds include risk management of general and automotive liability, employee group health insurance activities, and workers compensation. The County is self-insured under sovereign immunity up to a maximum of $200,000 per person/$300,000 per occurrence for claims against the County involving negligence, including automobile and general liability. Negligence claims in excess of the statutory limits set in Section , Florida Statutes, can only be recovered through an act of the State of Florida Legislature. The County carries specific worker s compensation excess insurance for claims exceeding $500,000. Employee medical benefit claims exceeding $400,000 per covered participant are covered with unlimited excess insurance. Reserves have been established for both claims that have been reported but not paid and for claims incurred but not reported. Reserves for the risk management fund and the workers compensation fund are based on an actuarial valuation as of year end, include allocated loss adjustment expenses and are recorded at present value at the expected confidence level. Reserves for general liability, automobile liability and workers compensation are based on present value factors ranging from , , and , respectively. Reserves for the medical benefits fund are based on industry standards of two months of current year claims expense. 106

109 Reconciliation of aggregate claims liabilities: Sarasota County, Florida Notes to Financial Statements September 30, 2015 Risk Management Medical Benefits Workers' Compensation Liability, October 1, 2013 $ 2,104,272 $ 4,500,000 $ 12,414,266 Current year claims and changes in estimates 1,826,313 35,046,820 3,878,398 Claims paid during the year (1,690,411) (35,046,820) (3,927,390) Liability, September 30, 2014 $ 2,240,174 $ 4,500,000 $ 12,365,274 Liability, October 1, 2014 $ 2,240,174 $ 4,500,000 $ 12,365,274 Current year claims and changes in estimates 1,530,000 35,831,289 4,805,163 Claims paid during the year (1,487,557) (35,831,289) (4,219,003) Liability, September 30, 2015 $ 2,282,617 $ 4,500,000 $ 12,951,434 Settled claims have not exceeded the commercial coverage in any of the past three fiscal years and there has not been a significant reduction in coverage from that of the previous fiscal year. NOTE 11. EMPLOYEE RETIREMENT PLANS Florida Retirement System Defined Benefit Pension Plan Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services Web site ( The County s pension expense totaled $15,235,492 for the FRS Pension Plan, the HIS Plan and the City of Sarasota s Firefighters pension plan for the year ended September 30,

110 Florida Retirement System Pension Plan Plan Description Sarasota County, Florida Notes to Financial Statements September 30, 2015 The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) Members in senior management level positions. Special Risk Class Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section , Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors benefits. The following chart shows the percentage value for each year of service credit earned: 108

111 Notes to Financial Statements September 30, 2015 As provided in Section , Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3 percent determined by dividing the sum of the pre-july 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Contributions The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively, were applied to employee salaries as follows: Regular 7.37% and 7.26%; Special Risk Administrative Support 42.07% and 32.95%; Special Risk 19.82% and 22.04%; Senior Management Service % and 21.43%; Elected Officers' 43.24% and 42.27%; and DROP participants 12.28% and 18.75%. These employer contribution rates include 1.20% and 1.26% HIS Plan subsidy for the periods October 1, 2014 through June 30, 2015 and from July 1, 2015 through September 30, 2015, respectively. Pension Costs Class, Initial Enrollment, and Retirement Age/Years of Service: % Value Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement up to age 63 or up to 31 years of service 1.63 Retirement up to age 64 or up to 32 years of service 1.65 Retirement up to age 65 or up to 33 years of service 1.68 Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement up to age 66 or up to 34 years of service 1.63 Retirement up to age 67 or up to 35 years of service 1.65 Retirement up to age 68 or up to 36 years of service 1.68 Elected County Officers 3.33 Senior Management Service Class 2.00 Special Risk Regular Service from December 1, 1970, through September 30, Service on and after October 1, At September 30, 2015, the County reported a liability of $104,367,556 for its proportionate share of the FRS Plan s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, The County s proportion of the net pension liability was based on the County s contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of FRS s participating employers. At June 30, 2015, the County s proportion was %, which is an increase of % from its proportion measured as of June 30, 2014 of %. For the year ended September 30, 2015, the County recognized pension expense of $5,597,160 for its proportionate share of FRS s pension expense. In addition, the County reported its proportionate share of FRS s deferred outflows of resources and deferred inflows of resources from the following sources: 109

112 Notes to Financial Statements September 30, 2015 Description Deferred outflows of resources Deferred inflows of resources Differences Between Expected and Actual Economic Experience $ 11,018,122 $ 2,475,280 Changes in Actuarial Assumptions 6,927,224 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 24,921,228 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 2,948,313 10,604,526 County Contributions Subsequent to the Measurement Date 5,477,561 - Total $ 26,371,220 $ 38,001,034 $5,477,561 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows: Actuarial assumptions Year Ended September 30 Amount 2016 $ (10,120,797) 2017 (10,120,797) 2018 (10,120,797) ,439, ,082,993 Thereafter 732,031 The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary increases Investment Rate of Return 2.60% Per year 3.25%, Average, Including Inflation 7.65%. Net of investment expense, Including inflation Mortality rates were based on the Generational RP-2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2015, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, The long-term expected rate of return on pension plan investments is not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. The target allocation, as outlined in the FRS Plan s investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: 110

113 Discount rate Sarasota County, Florida Notes to Financial Statements September 30, 2015 The discount rate used to measure the total pension liability was 7.65% for the FRS Plan. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following presents the County s proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Retiree Health Insurance Subsidy Program Plan Description Annual Arithmetic Return Compound Annual (Geometric) Return Asset Class Target Allocation Standard Deviation Cash 1.0% 3.2% 3.1% 1.7% Fixed income 18.0% 4.8% 4.7% 4.7% Global equity 53.0% 8.5% 7.2% 17.7% Real estate (property) 10.0% 6.8% 6.2% 12.0% Private Equity 6.0% 11.9% 8.2% 30.0% Strategic investments 12.0% 6.7% 6.1% 11.4% Assumed Inflation - Mean 2.6% 1.9% Description 1% Decrease in discount rate Current discount rate 1% Increase in discount rate FRS Plan Discount Rate 6.65% 7.65% 8.65% County's Proportionate Share of FRS Plan Net Pension Liability $ 270,439,941 $ 104,367,556 $ (33,831,947) The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section , Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Detailed information about the HIS Plan s fiduciary s net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at 111

114 Notes to Financial Statements September 30, 2015 Benefits Provided For the fiscal year ended June 30, 2015, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section , Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended June 30, 2015, the contribution rate was 1.26 percent of payroll pursuant to section , Florida Statues. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County s contributions to the HIS Plan were $2,589,138 for the year ended September 30, Costs At September 30, 2015, the County reported a liability of $62,623,856 for its proportionate share of the HIS Plan s net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, The County s proportion of the net pension liability was based on the County s contributions received during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all participating employers. At June 30, 2015, the County s proportion was %, which was an increase of % from its proportion of.6013% measured as of June 30, For the year ended September 30, 2015, the County recognized pension expense of $4,817,873 for its proportionate share of HIS s pension expense. In addition, the County reported its proportionate share of HIS s deferred outflows of resources and deferred inflows of resources from the following sources Description Deferred outflows of resources Deferred inflows of resources Differences Between Expected and Actual Economic Experience $ - $ - Changes in Actuarial Assumptions 4,926,863 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments 33,901 - Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 1,047,121 95,210 County Contributions Subsequent to the Measurement Date 832,071 - Total $ 6,839,956 $ 95,210 $832,071 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows: 112

115 Notes to Financial Statements September 30, 2015 Year Ended September 30 Amount 2016 $ 1,010, ,010, ,010, ,003, ,000,209 Thereafter 877,731 Actuarial Assumptions The total pension liability in the July 1, 2015, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation Salary Increases Investment Rate of Return 2.60% Per year 3.25%, Average, Including Inflation 3.80%. Net of investment expense, Including inflation Mortality rates were based on the Generational RP-2000 with Projection Scale BB. The HIS program is funded on a pay as you go basis and no experience study has been completed for the program. Thus, the above actuarial assumptions that determine the total pension liability as of June 30, 2015 were based on certain results of an actuarial experience study of the FRS for the period of July 1, 2008 June 30, Discount Rate The discount rate used to measure the total pension liability was 3.80% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Liability Sensitivity The following presents the County s proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Description 1% Decrease in discount rate Current discount rate 1% Increase in discount rate HIS Plan Discount Rate 2.80% 3.80% 4.80% County's Proportionate Share of HIS Plan Net Pension Liability $ 71,356,970 $ 62,623,856 $ 55,341,

116 Notes to Financial Statements September 30, 2015 Defined Contribution Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section , Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member s accounts during the fiscal year, as established by Section , Florida Statutes, are based on a percentage of gross compensation, by class, as follows: regular class 6.30%, special risk administrative support class 7.95%, special risk class 14.00%, senior management service class 7.67% and county elected officers class 11.34%. The allocations include a required employee contribution of 3% of gross compensation for each member class. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS-covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2015, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The County s Investment Plan pension expense totaled $2,797,024 for the year ended September 30, Employee contributions to the Investment Plan totaled $785,649 for the year ended September 30, Firefighters Pension Fund Plan Description The City of Sarasota maintains a cost-sharing multiple-employer defined benefit pension plan for all full-time firefighters which is maintained as a pension trust fund. Florida Statute Chapter 175 requires that the Board of Trustees be comprised of two members appointed by the City Council, two firefighters elected by a majority of the firefighters who are members of the Fund, and a fifth member chosen by a majority of the other members and ministerally appointed by the City Council. The Florida Constitution requires local governments to make the actuarially determined contribution to their defined benefit plans. The Florida Division of Retirement reviews each local government s actuarial report prior to its being appointed for use for funding purposes. 114

117 Notes to Financial Statements September 30, 2015 The Fund is administered in accordance with Chapter 24, Article II, of the Sarasota City Code 1986, and restated on November 16, On January 1, 1996, the Fire and Rescue Department was consolidated with Sarasota County, as such the Fund is closed to new entrants. The Fund remains intact with the City of Sarasota and Sarasota County making the employer contributions. Benefits Provided The Fund covers former City of Sarasota firefighters who are employed by Sarasota County as a result of consolidation. Effective April 7, 2003, any participant who has credible service of 10 years and has attained age 50 or has credible service of 25 years is eligible for normal retirement. Such a retiree would receive a normal retirement benefit of 3.0% of average annual earnings during the highest 3 years of service during the last 10 years of service multiplied by the years of service. The pension benefit cannot exceed the average taxable earnings for the last 3 years of employment. The pension being paid to any firefighter or the survivor of a deceased firefighter was increased annually by 3.5% on October 21, The Fund provides disability benefits for both duty related and non-duty related disabilities. Effective April 7, 2003, disability caused by performance of duties is computed at 3.0% of average compensation multiplied by years of services (minimum 25 years) and at all times, must be equal to at least 50% of the base salary for a journeyman fire medic top step. A not in line of duty disability is computed at 2.5% of average compensation multiplied by years of service plus 5% of the firefighter s last monthly salary for each eligible child. The Fund provides death benefits for both duty related and non-duty related deaths. Effective April 7, 2003, death caused by performance of duties is computed at two-thirds of 3.0% of average compensation multiplied by years of service (minimum 25 years) plus 5% of the firefighter s last monthly salary for each eligible child. The pension paid to a surviving spouse of a firefighter that died in the line of duty prior to April 7, 2003, shall, at all times, be equal to at least one-third of the base salary for a journeyman fire top step. A not in line duty death is computed at two-thirds of 2.5% of average compensation multiplied by years of service plus 5% of the firefighter s last monthly salary for each eligible child, and must be a minimum of their accrued benefit. Contributions Participants are required to contribute 8% of their annual salary to the Fund. Other contributions are received from the State of Florida, the City of Sarasota and Sarasota County. The City of Sarasota and the Sarasota County contribute amounts to make the Fund actuarially sound. The State of Florida contribution results from the City s share of insurance tax under Chapter 175. Sarasota County is required to contribute an actuarially determined rate, designed to accumulate sufficient assets to pay benefits when due. Under the terms of an interlocal agreement between the County and the City of Sarasota, the County is required to pay $1,700,000 of the first $2,200,000 of the total annual required contribution (ARC). Anything in excess of $2,200,000 is paid 35% by the City and 65% by the County. The County's contribution to the Plan for the year ending September 30, 2015 was $5,198,663. Pension Costs At September 30, 2015 the County reported a liability of $20,464,304 for its proportionate share of the City of Sarasota Firefighter s Pension Plan s net pension liability. The net pension liability was measured as of September 30, 2014, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of September 30, The County s proportion of the net pension liability is 67%. For the year ended September 30, 2015, the County recognized pension expense of $4,820,429 for its proportionate share of the City of Sarasota Firefighter s Pension Plan expense. In addition, the County reported its proportionate share of deferred outflows of resources and deferred inflows of resources from the following sources: 115

118 Notes to Financial Statements September 30, 2015 Description Deferred outflows of resources Deferred inflows of resources Differences Between Expected and Actual Economic Experience $ - $ - Changes in Actuarial Assumptions - - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 2,116,421 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions - - County Contributions Subsequent to the Measurement Date 5,198,663 - Total $ 5,198,663 $ 2,116,421 The $5,198,663 reported as deferred outflows related to pensions resulting from County contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as a decrease in pension expense as follows: Year Ended September 30 Amount 2015 $ (529,105) 2016 (529,105) 2017 (529,105) 2018 (529,106) Thereafter - Actuarial Assumptions The total pension liability in the September 30, 2014 actuarial valuation was determined using the following actuarial assumptions applied to all periods included in the measurement. Actuarial cost method Entry Age Normal Amortization method Level Dollar, Closed Remaining amortization period 8 years beginning October 1, 2014 Asset valuation method 3-Year smoothed market Inflation 3.75% Salary increases 3.75% to 6.75% including inflation Investment rate of return 7.25% Retirement age Age and experience-based table of rates that are specific to the type of eligibility condition. Mortality RP-2000 Mortality Table for males and females. There is no provision for future mortality improvement. 116

119 Notes to Financial Statements September 30, 2015 Discount Rate A single discount rate of 7.25% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.25%. The projection of cash flows used to determine this single discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following presents the County s proportionate share of the net pension liability for the City of Sarasota s Firefighters pension plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County s proportionate share of the net pension liability would be if it were calculated using a discount rate of one percentage point lower or one percentage point higher than the current discount rate. The pensions plan s fiduciary net position detailed information is available in a separately issued financial report. This report may be obtained through NOTE 12. DEFERRED COMPENSATION PLAN 1% Decrease in discount rate Current discount rate 1% Increase in discount rate Description City of Sarasota Firefighter's Pension Plan Discount Rate 6.25% 7.25% 8.25% County's Proportionate Share of Firefighters pension plan Net Pension Liability $ 33,130,214 $ 20,464,304 $ 9,933,450 Sarasota County offers its employees a deferred compensation plan created in accordance with the Internal Revenue Code Section 457. The plan, available to all County employees, permits the deferral of a portion of salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. The 1996 Internal Revenue Service regulations require that all amounts of deferred compensation, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held for the exclusive benefit of plan participants and their beneficiaries. The County amended its plans for this provision and was in full compliance by the required January 1, 1999 implementation date. GASB Statement No. 32 guidance requires for reporting periods beginning after December 31, 1998 alternative financial reporting standards for entities meeting the new requirements of IRC Section 457. The alternative reporting requirement became relevant to the County's fiscal year 2000 financial statements. Under Statement No. 32, the County is no longer required to report its Section 457 plan subsequent to fiscal year

120 Notes to Financial Statements September 30, 2015 NOTE 13. POST EMPLOYMENT BENEFITS (OTHER THAN PENSIONS) Plan Description The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan. The participants of Sarasota County s healthcare benefit plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court, the Property Appraiser, the Tax Collector, the Supervisor of Elections and the Sheriff. Healthcare benefits provided include medical and dental. Additionally, vision and life insurance are available at full cost. Benefit provisions are established and may be amended by the County through Resolution Pursuant to the provisions of Section Florida Statutes, any employee who retires and immediately begins receiving benefits from the Florida Retirement System (FRS) has the option of paying premiums to continue in the County s healthcare plan at the same cost that is applicable to active employees. The retiree s cost is partially offset by a subsidy from the Florida Retirement System equal to $5 per month for each year of creditable service, with a minimum of $30, and a maximum of $150 per month. Coverage can be continued for the spouse after the death of the retiree, at a retiree s single person subsidized rate, if elected. The County subsidizes the healthcare premium rates paid by the retirees by allowing participation in the plan at a blended group (implicitly subsidized) premium rate that is the same for active employees and retirees. This blended rate provides an implicit rate subsidy for retirees since, on an actuarial basis, a retiree s current and future claims are expected to result in higher costs to the plan on average than those of active employees. There were 3,114 active plan participants and 325 retired plan participants included in the Fiscal Year 2015 actuarial valuation. In September 2008, the County established and funded an OPEB Benefit Trust (Trust) as part of the Florida Municipal Pension Trust Fund (FMPTF), a qualifying trust, which is administered by the Florida League of Cities. The County has the authority, through Resolution , to establish and amend the funding policy of the trust. For the year ended September 30, 2013 the County withdrew $3,170,100 from the Trust and for the year ended September 30, 2015, the County withdrew $3,974,408 from the Trust. The withdrawals were used to pay claims and to reimburse the County s Medical Benefits Fund for several years of excess retiree claims over retiree contributions. The County intends to base future Trust contributions on the actuarially determined annual required contribution (ARC), however, no Trust contributions are legally or contractually required. Separate stand-alone financial statements for the Trust are not prepared. Annual OPEB Cost and Net OPEB Obligation The annual other postemployment benefit (OPEB) cost (expense) is calculated based on the ARC, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County's annual OPEB cost for the year, the actuarially determined amounts contributed, and the changes in the net OPEB obligation. FY15 FY14 FY13 Annual required contribution (ARC) $ 509,000 $ 343,000 $ 913,000 Interest on net OPEB obligation (asset) (427,000) (393,000) (374,000) Adjustment to annual required contribution 302, , ,000 Annual OPEB cost (expense) 384, , ,000 Actuarial determined contributions made (814,000) (749,000) (1,104,000) Increase (decrease) in net OPEB Obligation (430,000) (521,000) (300,000) Net OPEB Obligation (Asset) - beginning of year (6,568,000) (6,047,000) (5,747,000) Net OPEB Obligation (Asset) - end of year $ (6,998,000) $ (6,568,000) $ (6,047,000) Annual OPEB cost contributed 212% 329% 137% 118

121 Notes to Financial Statements September 30, 2015 Funded Status and Funding Progress As of July 1, 2015, the most recent actuarial valuation date, the unfunded actuarial accrued liability (UAAL) for benefits was $4,319,000. From October 1, 2015 to September 30, 2016, the actuarial determined amount of County contributions to the Trust is projected to be $579,820. These projected contributions are the excess of retiree claims over retiree contributions for a one year period. As of September 30, 2015, the actuarial accrued liability (AAL) for benefits was $10,357,000 and the actuarial value of assets was $6,038,000 resulting in an UAAL of $4,319,000. The actuarial value of assets as a percentage of the actuarial accrued liability was 58.3% (funded ratio). The ratio of the UAAL to annual covered payroll of $189.7 million was 2.3%. Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The discount rate is based on the long-term earnings potential of any investments set up in a trust to prefund these benefits. The 6.5% baseline discount rate assumes a long-term investment return in the County s OPEB Trust that is currently invested in 50% stocks/ 50% bonds. The required schedule of funding progress (in Required Supplementary Information) presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Calculations for financial reporting purposes are based on the benefits provided under terms of the substantive plan (the plan as understood by the employer and the plan members) in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method: Amortization period: Amortization method: Asset valuation method: Projected Unit Credit Cost Method 30 year open period The unfunded actuarial accrued liability is amortized as a level-percent of pay. Fair value The actuarial assumptions are: The probability of termination and retirement were updated to match the rates found in the actuarial valuation of the Florida Retirement System as of July 1, The FRS termination rates include the probability of retiring early with a reduced pension. The assumed per capita annual healthcare claim cost, including prescription drug claims, for a 62-year old participant during the period July 1, 2014 through June 30, 2015 is assumed to be $8,394 ($6,706 for the high-deductible plan). Healthcare claims are assumed to increase at a rate of 3.5% per year due to aging and levels off at age

122 Notes to Financial Statements September 30, 2015 Retirees electing post-employment healthcare coverage under the POS plan have been assumed to make monthly contributions during the period January 1, 2015 through December 31, 2015 equal to $540 for single coverage and $1,351 for single plus spousal coverage. Retirees electing post-employment healthcare coverage under the high-deductible plan have been assumed to make monthly contributions during the period January 1, 2015 through December 31, 2015 equal to $391 for single coverage and $978 for single plus spousal coverage. Retiree contributions have been assumed to increase at the rate of 5.25% per annum. 66.7% of future retirees have been assumed to elect coverage under the Aetna POS II health plan option and 33.3% will elect the high deductible plan. Current retirees have been assumed to continue their current election as to health plan and coverage status. 75% of future eligible police officers, 50% of firefighters and 50% of eligible general employees are assumed to elect coverage upon retirement or disability; with 40% of these individuals also assumed to elect coverage for their spouse; coverage is assumed to continue only until age 65 for 90% of retirees, with the remaining 10% assumed to continue coverage for life. Medicare is assumed to cover 80% of the medical claims for retirees over age 65. Husbands are assumed to be three years older than wives. Future retirees were not assumed to have any dependent children upon retirement or disability. No implied subsidy was assumed with respect to child dependents of the current retirees. Future healthcare coverage provided solely pursuant to COBRA was not included in the OPEB valuation; because the COBRA premium is determined periodically based on plan experience and is then loaded by 2%, we assumed that the COBRA premium to be paid by the participant fully covers the cost of providing healthcare coverage during the relevant period. The cost of covered medical services has been assumed to increase at the rate of 5.00% per annum and the cost of prescription drugs has been assumed to increase at the rate of 6.00% per annum. Investment rate of return: 6.5% (Includes inflation at 3% per annum) 120

123 NOTE 14. CHANGE IN ACCOUNTING PRINCIPLE Sarasota County, Florida Notes to Financial Statements September 30, 2015 During the year ended September 30, 2015 the County adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of GASB Statement No. 68. These pronouncements require the restatement of the September 30, 2014 net position of the governmental activities and business type funds as follows: Governmental Activities Business type Activities Total Net Position September 30,2014, As Previously Reported $ 1,521,461,027 $ 860,357,645 $ 2,381,818,672 Cumulative effect of application of GASB 68 (199,841,024) (14,040,190) (213,881,214) Cumulative effect of application of GASB 71 10,815, ,759 11,235,812 Net position September 30, 2014 as Restated $ 1,332,435,056 $ 846,738,214 $ 2,179,173,270 The restatement of the proprietary funds is as follows: Major Utility System Major Solid Waste System Major Stormwater Utility Nonmajor Transportation Authority Internal Service Funds Net Position September 30,2014, As Previously Reported $ 498,986,487 $ 129,709,023 $ 129,270,382 $ 33,486,187 $ 82,760,657 Cumulative effect of application of GASB 68 (5,398,573) (964,648) (1,893,060) (5,783,909) (8,020,960) Cumulative effect of application of GASB ,786 28,908 56, , ,375 Net position September 30, 2014 as Restated $ 493,749,700 $ 128,773,283 $ 127,434,053 $ 27,875,612 $ 74,980,072 NOTE 15. CONTINGENCIES Federal, State and Local Grants Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. Litigation The County is a defendant in various lawsuits in the normal course of business. To the extent the outcome of such litigation has been determined to result in probable loss to the County; such loss has been accrued in the accompanying financial statements. Litigation where loss to the County is reasonably possible has not been accrued; however, a reserve for general liability claims has been established in the risk management fund - see Note 10 for additional information. Although the outcome of the remaining claims is not presently determinable, it is the opinion of the County s General Counsel that resolution of these matters will not have a material adverse effect on the financial condition of the County. 121

124 Notes to Financial Statements September 30, 2015 NOTE 16. DEFICIT FUND BALANCES The following Non-Major Governmental Fund(s) ended the year with a deficit balance in unassigned fund balance: Federal, State and Local Grants Fund The Federal, State and Local Grants Fund has a negative unassigned fund balance of $110,727 as of September 30, This negative balance will clear in the next fiscal year, as the fund will be repaid for uncollected grants. The following Internal Service Fund ended the year with a deficit balance in unrestricted net position: Public Works The Public Works fund has a negative unrestricted net position of $2,066,576 as of September 30, This negative balance is due to the application of pension related accounts as defined in GASB Statement No. 68 and 71. Nonmajor Transportation Authority The Transportation Authority fund has a negative unrestricted net position of $1,411,775 as of September 30, This negative balance is due to the application of pension related accounts as defined in GASB Statement No. 68 and

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127 REQUIRED SUPPLEMENTARY INFORMATION 125

128 OPEB Schedule of Funding Progress September 30, 2015 Actuarial Actuarial Accrued UAAL as a Value of Liability (AAL) - Unfunded Funded Covered Percentage of Actuarial Assets Entry Age AAL (UAAL) Ratio Payroll* Covered Payroll Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) July 1, 2013 $ 8,753,000 $ 13,697,000 $ 4,944,000 64% $ 174,700, % July 1, ,446,000 9,706, , ,600, July 1, ,038,000 10,357,000 4,319, ,660, *Covered payroll is actual payroll for the fiscal year. 126

129 OPEB Schedule of Employer Contributions September 30, 2015 Year Annual OPEB Ended ARC % Contributed Cost % Contributed 2013 $ 913, % $ 804, % , , , ,

130 Schedule of Proportionate Share of Net Pension Liability Florida Retirement System Pension Plan 2015 Proportion of the net pension liability (asset) % Propotionate share of the net pension liability (asset) $ 104,367,556 Covered employee payroll* $ 160,944,490 Proportionate share of the net pension liability (asset) as a percentage of its covered employee payroll 64.85% Plan fiduciary net position as a percentage of the total pension liability 92.00% *Covered payroll is pensionable wages as of the measurement date 128

131 Schedule of Proportionate Share of Net Pension Liability Health Insurance Subsidy 2015 Proportion of the net pension liability (asset) % Propotionate share of the net pension liability (asset) $ 62,623,856 Covered employee payroll* $ 189,660,020 Proportionate share of the net pension liability (asset) as a percentage of its covered employee payroll 33.02% Plan fiduciary net position as a percentage of the total pension liability 0.50% *Covered payroll is actual payroll as of the measurement date 129

132 City of Sarasota Firefighters Pension Plan Schedule of Proportionate Share of Net Pension Liability 2015 Proportion of the net pension liability (asset) % Propotionate share of the net pension liability (asset) $ 20,464,304 Covered employee payroll* $ 1,078,100 Proportionate share of the net pension liability (asset) as a percentage of its covered employee payroll % Plan fiduciary net position as a percentage of the total pension liability 81.49% *Covered payroll is actual payroll as of the measurement date 130

133 Schedule of Contributions Florida Retirement System Pension Plan 2015 Contractually required contribution $ 20,258,408 Contributions in relation to the contractually required contribution (20,258,408) Contribution deficiency (excess) $ - Covered employee payroll * $ 163,432,065 Contributions as a percentage of coveredemployee payroll 12.40% *Covered payroll is pensionable wages for the fiscal year 131

134 Schedule of Contributions Health Insurance Subsidy 2015 Contractually required contribution $ 2,589,138 Contributions in relation to the contractually required contribution (2,589,138) Contribution deficiency (excess) $ - Covered employee payroll* $ 189,660,020 Contributions as a percentage of coveredemployee payroll 1.37% *Covered payroll is actual payroll for the fiscal year 132

135 City of Sarasota Firefighters Pension Plan Schedule of Contributions 2015 Contractually required contribution $ 5,198,663 Contributions in relation to the contractually required contribution (5,198,663) Contribution deficiency (excess) $ - Covered employee payroll* $ 1,078,100 Contributions as a percentage of coveredemployee payroll % *Covered payroll is actual payroll as of the measurement date 133

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137 GOVERNMENTAL FUNDS FINANCIAL STATEMENTS 135

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139 Governmental Funds Nonmajor Special Revenue Funds Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Transportation - To account for the operation of the administration, highway maintenance, traffic and engineering divisions of the Transportation Department. Building and Zoning - To account for the operation of the administration and development services divisions of the Building Department. Tourist Development - To account for proceeds of the Tourist Development Tax. Franchise Utilities - To account for the proceeds of utility taxes collected within the County. Mosquito Control - To account for the operations relative to mosquito control activities. Grants in Aid - To account for ad valorem taxes and Choose Life license plate fees used for the Grants-In-Aid program to non-profit organizations that operate children, adoption and youth services and programs. Federal, State and Local Grants - To account for receipt of federal, state and local grants restricted for specific purposes. Environmental Resources - To account for the 50-cent surcharge per auto tag issued for air quality programs, to account for ad valorem taxes used for the operating portion of environmentally sensitive land acquisitions, and to account for fines received for violations of the Sarasota County tree removal ordinance and Air and Water Pollution Code. Gifts, Donations and Recreation - To account for gifts and donations made to the County for specific purposes and to account for special interest/events related to recreation. Improvement Districts - To account for monies collected for the improvement of a specific area within the County. Court Improvements - To account for monies to be used for the provision and maintenance of court facilities and equipment. Street Lighting Districts - To account for the operation of supplying street lighting to specific areas in the County. Arts in Public Places - To account for the allocation of one percent of eligible construction funds to be used to purchase or commission art for government facilities. Access Sarasota - To account for funds used for television broadcasting of a broad range of government information and services. Economic Development - To account for funds used for community redevelopment and promotion of industrial development within the County. Moving Violation Surcharge - To account for proceeds of the $12.50 surcharge per moving violation. 137

140 Nonmajor Special Revenue Funds (continued) Law Enforcement - To account for revenues received for restitution of damage to either the Sheriff s property or to an officer s property. Funds from the sale of confiscated property and unclaimed evidence are also recorded in this fund. Sheriff s Funds - To account for forfeited property in accordance with state and federal contractual obligations and Florida Statutes; to account for monies collected by the Clerk of Circuit Court and remitted to the Sheriff to provide for education and training of Sheriff s personnel; and to account for revenue from the sale of various items to prisoners. Clerk s Funds - To account for monies to be used for purchasing equipment, personnel training, and technical assistance in modernizing the official records system. Nonmajor Debt Service Funds Debt service funds are used to account for the accumulation of resources for, and the payment of, general long term debt principal and interest. Communication Services Tax Series 2005A - To account for debt service on funds used to finance the costs of the design and construction of sidewalks at various locations throughout the County. Limited Ad Valorem Tax Series To account for debt service on funds used to finance the costs of acquiring and protecting environmentally sensitive lands. Communication Services Tax Series 2005B - To account for debt service on funds used to finance the construction of Webber Street, a new bridge over Phillippi Creek, a new culvert over Lanalai Creek, as well as other related improvements. Five-Cent Local Option Fuel Tax Series To account for debt service on funds used to finance the design and construction of 3.6 miles of roadway on Center Road between Jacaranda Blvd and River Road as well as other related improvements. Communication Services Tax Series To account for debt service on funds used to finance the construction of Bahia Vista Street as well as other related improvements. Limited Ad Valorem Tax Series To account for debt service on funds used to finance the costs of acquiring and protecting environmentally sensitive lands, neighborhood parklands, and public recreation. Infrastructure Sales Surtax Series 2008A - To account for debt service on funds used to finance the planning, engineering, constructing, reconstructing, and equipping of various capital infrastructure projects. Infrastructure Sales Surtax Series 2008B - To account for debt service on funds used to finance the planning, engineering, constructing, reconstructing, and equipping of various capital infrastructure projects. Bank Term Loans - To account for debt service on funds used for a variety of capital improvement projects, equipment purchases, and other uses. Commercial Paper - To account for debt service on funds used for a variety of capital improvement projects, equipment purchases, and other uses. Capital Improvement Series 2010 To account for debt service on funds used to finance a portion of the cost of the acquisition, construction and renovation of a major league baseball spring training facility, including practice fields, and other ancillary facilities. 138

141 Nonmajor Debt Service Funds (continued) Communication Services Tax Series To account for debt service on funds used to finance or refinance the acquisition, construction, and equipping of an aquatic nature center and related improvements. Second Guaranteed Entitlement Series 2013 To account for debt service on funds used to finance the planning, engineering, constructing, reconstructing, and equipping of the Sarasota Emergency Operations Center. Infrastructure Sales Surtax Series 2014A, Series 2015 To account for debt service on funds used to advance refund all or a portion of the Infrastructure Sales Surtax Revenue Bonds Series 2008B maturing on and after October 1, 2018 and Series 2008A maturing on and after October 1, 2019, respectively. Nonmajor Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary and trust funds. Motor Fuels Taxes - To account for various road projects that are financed by additional local option gas tax. Commercial Paper - To account for road, general government, and public safety projects that are financed by the issuance of commercial paper. Impact Fees - To account for road, park, library, law enforcement, justice facility, general government, EMS, and Fire projects that are financed by impact fees. Ad Valorem Taxes - To account for ad valorem taxes used to purchase environmentally sensitive land. All Other Capital Projects - To account for all other capital project revenues including grants and cable television franchise fees. Nonmajor Permanent Fund Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the reporting government s programs. Library Endowment - To account for principal endowment amounts and related interest income. The interest portion of the endowments can be expended for purposes as specified by donors. 139

142 Combining Balance Sheet Nonmajor Governmental Funds September 30, 2015 Special Debt Capital Revenue Service Projects ASSETS Cash and investments $ 100,753,053 $ 13,074,940 $ 107,849,555 Accounts receivable - other 6,852 26,877 16,560 Interest receivable 210,910 61, ,384 Intergovernmental receivable 6,879,019-5,350,702 Loans receivable 10,060, Inventories 149, Total assets $ 118,059,234 $ 13,163,789 $ 113,428,201 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2,402,064 $ - $ 589,011 Wages and benefits payable 1,014, Contracts and retainages payable 1,905,819-4,574,542 Due to other funds 196, Intergovernmental payable 10,828, Unearned revenue 2,016, ,000 Deposits 65, Advances from other funds - - 2,143,000 Total liabilities 18,429,603-7,476,553 Fund balances: Nonspendable 149, Restricted 80,966,376 13,163,789 86,665,627 Committed 18,560,783-19,286,021 Assigned 63, Unassigned (110,727) - - Total fund balances 99,629,631 13,163, ,951,648 Total liabilities and fund balances $ 118,059,234 $ 13,163,789 $ 113,428,

143 Library Endowments Total Nonmajor Governmental Funds $ 1,497,289 $ 223,174,837-50,289 3, ,285-12,229,721-10,060, ,334 $ 1,500,308 $ 246,151,532 $ - $ 2,991,075-1,014,003-6,480, ,961-10,828,408-2,186,707-65,641-2,143,000-25,906,156 1,492,710 1,642,044 7, ,803,390-37,846,804-63,865 - (110,727) 1,500, ,245,376 $ 1,500,308 $ 246,151,

144 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended September 30, 2015 Special Debt Capital Revenue Service Projects REVENUES Taxes $ 45,185,998 $ 7,234,799 $ 2,129,863 Permits, fees and special assessments 10,002, Intergovernmental 10,030, ,190 11,347,410 Charges for services 14,563, Judgments, fines and forfeits 3,155, Interest income 1,662, ,412 1,450,914 Net inc (dec) in fair value of investments 250,307 71, ,915 Contributions and donations 405,957 - (208,339) Miscellaneous 4,614,169-28,801 Total revenues 89,870,441 8,566,371 14,995,564 EXPENDITURES Current: General government 11,122,595-8,741,934 Public safety 13,078,281-12,603,928 Physical environment 3,621, ,517 Transportation 18,218,484-18,376,638 Economic environment 9,200, Human services 11,881, Culture and recreation 12,538,220-5,978,747 Debt service: Principal - 25,124,000 - Interest and fiscal charges - 11,457,624 - Debt issuance costs - 846,813 - Refunding other sources to escrow - 1,020,650 - Total expenditures 79,660,790 38,449,087 46,412,764 Excess (deficiency) of revenues over (under) expenditures 10,209,651 (29,882,716) (31,417,200) OTHER FINANCING SOURCES (USES) Transfers in 9,528,425 30,742,755 26,378,393 Transfers out (22,476,662) (4,558,235) (5,265,452) Note issuance - 82,170,000 - Commercial paper issuance - - 6,066,000 Revenue bond issuance - 70,845,000 - Advance refunding bond proceeds to escrow - (165,438,141) - Premium of bond issuance - 13,262,470 - Total other financing sources (uses) (12,948,237) 27,023,849 27,178,941 Net change in fund balances (2,738,586) (2,858,867) (4,238,259) Fund balances - beginning 102,368,217 16,022, ,189,907 Fund balances - ending $ 99,629,631 $ 13,163,789 $ 105,951,

145 Library Endowments Total Nonmajor Governmental Funds $ - $ 54,550,660-10,002,474-22,213,996-14,563,803-3,155,330 21,853 3,558,186 3, , ,618-4,642,970 25, ,457,476-19,864,529-25,682,209-4,333,061-36,595,122-9,200,265-11,881,401-18,516,967-25,124,000-11,457, ,813-1,020, ,522,641 25,100 (51,065,165) - 66,649,573 (22,357) (32,322,706) - 82,170,000-6,066,000-70,845,000 - (165,438,141) - 13,262,470 (22,357) 41,232,196 2,743 (9,832,969) 1,497, ,078,345 $ 1,500,308 $ 220,245,

146 Subcombining Balance Sheet Nonmajor Special Revenue Funds September 30, 2015 Building Tourist Transportation and Zoning Development ASSETS Cash and investments $ 2,850,711 $ 22,935,179 $ 25,787,090 Accounts receivable other Interest receivable 13,815 45,940 54,404 Intergovernmental receivable 2,859,911-1,824,719 Loans receivable Inventories Total assets $ 5,724,437 $ 22,981,119 $ 27,666,213 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 150,265 $ 82,206 $ 42,899 Wages and benefits payable 172, ,416 58,724 Contracts and retainage payable 581,149-1,097,236 Due to other funds Intergovernmental payable 272,675 34,823 1,044,832 Unearned revenue Deposits 65, Total liabilities 1,242, ,445 2,243,691 Fund balances: Nonspendable Restricted 4,390,978 19,400,624 25,422,522 Committed 27,047 3,298,050 - Assigned 63, Unassigned Total fund balances 4,481,890 22,698,674 25,422,522 Total liabilities and fund balances $ 5,724,437 $ 22,981,119 $ 27,666,

147 Federal, Franchise Mosquito Grants in State and Environmental Utilities Control Aid Local Grants Resources $ 3,246,468 $ 2,246,053 $ 1,760,048 $ - $ 8,536, ,416-6,458 4,933 3, , ,625,795 36, ,598, , $ 3,252,926 $ 2,400,320 $ 1,763,847 $ 10,229,405 $ 8,590,697 $ - $ 73,075 $ 934,082 $ 576,461 $ 26,322 3,695 29,266-12,290 46, ,664 5, , ,725, , , , ,082 9,994,861 78, , ,148, ,271 7,502,197 3,249, ,765-1,010, (110,727) - 3,249,231 2,297, , ,544 8,512,460 $ 3,252,926 $ 2,400,320 $ 1,763,847 $ 10,229,405 $ 8,590,697 (Continued) 145

148 Subcombining Balance Sheet Nonmajor Special Revenue Funds September 30, 2015 Gifts, Donations and Improvement Court Recreation Districts Improvements ASSETS Cash and investments $ 2,460,354 $ 1,075,705 $ 4,682,260 Accounts receivable other Interest receivable 4,975 2,159 14,314 Intergovernmental receivable ,928 Loans receivable Inventories Total assets $ 2,465,329 $ 1,077,864 $ 4,930,502 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 28,903 $ 8,448 $ 170,858 Wages and benefits payable 19,685-4,803 Contracts and retainage payable Due to other funds Intergovernmental payable 8, Unearned revenue 39, Deposits Total liabilities 96,223 8, ,661 Fund balances: Nonspendable Restricted 1,118,393-4,754,841 Committed 1,250,713 1,069,416 - Assigned Unassigned Total fund balances 2,369,106 1,069,416 4,754,841 Total liabilities and fund balances $ 2,465,329 $ 1,077,864 $ 4,930,

149 Street Arts in Moving Lighting Public Access Economic Violation Districts Places Sarasota Development Surcharge $ 1,649,657 $ 70,067 $ 103,863 $ 18,358,089 $ 110, , , , ,118 27, ,461, $ 1,661,134 $ 70,206 $ 104,480 $ 20,083,615 $ 138,986 $ 10,709 $ - $ - $ 57,762 $ , , , , ,492, ,709-72,150 1,908, ,102, ,899 1,650,425 70,206 32,330 6,073, ,650,425 70,206 32,330 18,175, ,899 $ 1,661,134 $ 70,206 $ 104,480 $ 20,083,615 $ 138,986 (Continued) 147

150 Subcombining Balance Sheet Nonmajor Special Revenue Funds September 30, 2015 Law Sheriff's Enforcement Funds ASSETS Cash and investments $ 362,809 $ 1,565,798 Accounts receivable other - - Interest receivable Intergovernmental receivable 8,425 - Loans receivable - - Inventories - - Total assets $ 371,955 $ 1,565,798 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 140,514 Wages and benefits payable - - Contracts and retainage payable - - Due to other funds - 12,483 Intergovernmental payable - - Unearned revenue - - Deposits - - Total liabilities - 152,997 Fund balances: Nonspendable - - Restricted 371,955 1,412,801 Committed - - Assigned - - Unassigned - - Total fund balances 371,955 1,412,801 Total liabilities and fund balances $ 371,955 $ 1,565,

151 Clerk's Funds Total $ 2,951,425 $ 100,753,053 1,629 6, ,910 27,347 6,879,019-10,060, ,334 $ 2,980,401 $ 118,059,234 $ 99,473 $ 2,402, ,193 1,014,003-1,905, , ,543 10,828,408-2,016,707-65,641 1,123,209 18,429, ,334 1,857,192 80,966,376-18,560,783-63,865 - (110,727) 1,857,192 99,629,631 $ 2,980,401 $ 118,059,

152 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended September 30, 2015 Building Tourist Transportation and Zoning Development REVENUES Taxes $ 11,964,586 $ - $ 19,073,635 Permits, fees and special assessments 525 9,381,007 - Intergovernmental 4,875, Charges for services 1,463,330 2,593,826 - Judgments, fines and forfeits - 448,929 - Interest income 82, , ,111 Net inc (dec) in fair value of investments 9,202 59,093 77,575 Contributions and donations ,000 Miscellaneous 87, ,527 4,790 Total revenues 18,482,859 13,544,387 19,694,111 EXPENDITURES Current: General government Public safety - 8,546,185 - Physical environment - - 6,638 Transportation 17,212, Economic environment - - 5,024,401 Human services Culture and recreation ,001,457 Total expenditures 17,212,518 8,546,185 15,032,496 Excess (deficiency) of revenues over (under) expenditures 1,270,341 4,998,202 4,661,615 OTHER FINANCING SOURCES (USES) Transfers in 3,957, ,489 2,502,482 Transfers out (5,478,039) (1,715,394) (10,513,062) Total other financing sources and (uses) (1,520,575) (1,465,905) (8,010,580) Net change in fund balances (250,234) 3,532,297 (3,348,965) Fund balances - beginning 4,732,124 19,166,377 28,771,487 Fund balances - ending $ 4,481,890 $ 22,698,674 $ 25,422,

153 Federal, Franchise Mosquito Grants in State and Environmental Utilities Control Aid Local Grants Resources $ - $ 3,380,157 $ 6,844,649 $ - $ 1,266, , ,528, ,090 21, ,120 47,386 49,787 22,216 8, ,494 6,909 7,793 4, , , ,732 25,460 76,116 3,486,622 6,871,503 4,750,299 2,252, , , , , ,404,566 2,066, ,549, ,039,913 8,358, , , , ,880 3,039,913 8,593,747 4,953,013 2,442,268 (63,764) 446,709 (1,722,244) (202,714) (189,403) - 55,676 1,840, , ,925 - (551,489) - (20,561) (663,343) - (495,813) 1,840, ,117 (513,418) (63,764) (49,104) 118,156 3,403 (702,821) 3,312,995 2,347, , ,141 9,215,281 $ 3,249,231 $ 2,297,979 $ 829,765 $ 234,544 $ 8,512,460 (Continued) 151

154 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended September 30, 2015 Gifts, Donations and Improvement Court Recreation Districts Improvements REVENUES Taxes $ - $ 88,170 $ - Permits, fees and special assessments ,409 - Intergovernmental Charges for services 564,638-2,682,376 Judgments, fines and forfeits ,182 Interest income 35,535 17,263 95,204 Net inc (dec) in fair value of investments 4,815 2,579 11,245 Contributions and donations 131, Miscellaneous 513,761 6,638 - Total revenues 1,250, ,059 3,077,007 EXPENDITURES Current: General government - - 1,248,855 Public safety ,071 Physical environment - 3,542 - Transportation - 156,849 - Economic environment Human services ,101 Culture and recreation 1,141, Total expenditures 1,141, ,391 1,511,027 Excess (deficiency) of revenues over (under) expenditures 109, ,668 1,565,980 OTHER FINANCING SOURCES (USES) Transfers in 22, ,187 Transfers out (2) (263,566) (2,782,180) Total other financing sources and (uses) 22,355 (263,566) (2,625,993) Net change in fund balances 131,950 43,102 (1,060,013) Fund balances - beginning 2,237,156 1,026,314 5,814,854 Fund balances - ending $ 2,369,106 $ 1,069,416 $ 4,754,

155 Street Arts in Moving Lighting Public Access Economic Violation Districts Places Sarasota Development Surcharge $ 768,221 $ - $ - $ 1,799,634 $ - 76, ,198 27,111 1,010 8, ,534 1,841 4, ,235 39, ,245-7, , ,880 1,162 9,516 2,671, , , , ,626, , , , ,458 2,881, ,113 34, (627,942) (210,137) (22,782) ,767 - (17,357) - (6,160) (465,509) - (17,357) - (6,160) (97,742) - 17, (634,102) (307,879) (22,782) 1,633,019 69, ,432 18,483, ,681 $ 1,650,425 $ 70,206 $ 32,330 $ 18,175,395 $ 138,899 (Continued) 153

156 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended September 30, 2015 Law Enforcement Sheriff's Funds REVENUES Taxes $ - $ - Permits, fees and special assessments - - Intergovernmental - - Charges for services - - Judgments, fines and forfeits 90, ,678 Interest income 4,766 - Net inc (dec) in fair value of investments Contributions and donations - - Miscellaneous - 2,565,260 Total revenues 96,136 2,710,938 EXPENDITURES Current: General government - - Public safety 91,575 2,879,882 Physical environment - - Transportation - - Economic environment - - Human services - - Culture and recreation - - Total expenditures 91,575 2,879,882 Excess (deficiency) of revenues over (under) expenditures 4,561 (168,944) OTHER FINANCING SOURCES (USES) Transfers in - - Transfers out - - Total other financing sources and (uses) - - Net change in fund balances 4,561 (168,944) Fund balances - beginning 367,394 1,581,745 Fund balances - ending $ 371,955 $ 1,412,

157 Clerk's Funds Total $ - $ 45,185,998-10,002,474 77,205 10,030,396 7,237,412 14,563,803 1,754,379 3,155, ,928 1,662, , ,957-4,614,169 9,179,924 89,870,441 9,161,645 11,122,595-13,078,281-3,621,544-18,218,484-9,200,265-11,881,401-12,538,220 9,161,645 79,660,790 18,279 10,209,651-9,528,425 - (22,476,662) - (12,948,237) 18,279 (2,738,586) 1,838, ,368,217 $ 1,857,192 $ 99,629,

158 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transportation Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 11,568,672 $ 11,568,672 $ 11,964,586 $ 395,914 Permits, fees and special assessments Intergovernmental 4,595,336 4,595,336 4,875, ,026 Charges for services 934, ,228 1,463, ,102 Interest income 41,731 41,731 82,668 40,937 Net inc (dec) in fair value of investments - - 9,202 9,202 Miscellaneous 47,036 47,036 87,186 40,150 Total revenues 17,187,003 17,187,003 18,482,859 1,295,856 EXPENDITURES Current: Transportation 18,593,080 18,430,586 17,212,518 1,218,068 Total expenditures 18,593,080 18,430,586 17,212,518 1,218,068 Excess (deficiency) of revenues over (under) expenditures (1,406,077) (1,243,583) 1,270,341 2,513,924 OTHER FINANCING SOURCES (USES) Transfers in 5,922,646 6,028,441 3,957,464 (2,070,977) Transfers out (5,215,677) (5,478,040) (5,478,039) 1 Total other financing sources and (uses) 706, ,401 (1,520,575) (2,070,976) Net change in fund balances (699,108) (693,182) (250,234) 442,948 Fund balances - beginning 4,732,124 4,732,124 4,732,124 - Fund balances - ending $ 4,033,016 $ 4,038,942 $ 4,481,890 $ 442,

159 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building and Zoning Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Permits, fees and special assessments $ 6,188,386 $ 6,188,386 $ 9,381,007 $ 3,192,621 Charges for services 1,486,860 1,486,860 2,593,826 1,106,966 Judgments, fines and forfeits 105, , , ,386 Interest income 161, , , ,505 Net inc (dec) in fair value of investments ,093 59,093 Miscellaneous 529, , , ,015 Total revenues 8,471,801 8,471,801 13,544,387 5,072,586 EXPENDITURES Current: Public safety 10,450,048 10,450,048 8,546,185 1,903,863 Total expenditures 10,450,048 10,450,048 8,546,185 1,903,863 Excess (deficiency) of revenues over (under) expenditures (1,978,247) (1,978,247) 4,998,202 6,976,449 OTHER FINANCING SOURCES (USES) Transfers in 376, , ,489 (135,080) Transfers out - (1,715,394) (1,715,394) - Total other financing sources and (uses) 376,444 (1,330,825) (1,465,905) (135,080) Net change in fund balances (1,601,803) (3,309,072) 3,532,297 6,841,369 Fund balances - beginning 19,166,377 19,166,377 19,166,377 - Fund balances - ending $ 17,564,574 $ 15,857,305 $ 22,698,674 $ 6,841,

160 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tourist Development Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 16,866,777 $ 16,866,777 $ 19,073,635 $ 2,206,858 Interest income 298, , , ,845 Net inc (dec) in fair value of investments ,575 77,575 Contributions and donations 125, , ,000 - Miscellaneous - - 4,790 4,790 Total revenues 17,290,043 17,290,043 19,694,111 2,404,068 EXPENDITURES Current: Physical environment 100, ,000 6,638 93,362 Economic environment 6,452,069 6,415,569 5,024,401 1,391,168 Culture and recreation 9,837,667 12,940,150 10,001,457 2,938,693 Total expenditures 16,389,736 19,455,719 15,032,496 4,423,223 Excess (deficiency) of revenues over (under) expenditures 900,307 (2,165,676) 4,661,615 6,827,291 OTHER FINANCING SOURCES (USES) Transfers in - 2,507,519 2,502,482 (5,037) Transfers out (8,718,347) (10,513,062) (10,513,062) - Total other financing sources and (uses) (8,718,347) (8,005,543) (8,010,580) (5,037) Net change in fund balances (7,818,040) (10,171,219) (3,348,965) 6,822,254 Fund balances - beginning 28,771,487 28,771,487 28,771,487 - Fund balances - ending $ 20,953,447 $ 18,600,268 $ 25,422,522 $ 6,822,

161 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Franchise Utilities Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Charges for services $ 21,329 $ 21,329 $ 21,821 $ 492 Interest income 47,500 47,500 47,386 (114) Net inc (dec) in fair value of investments - - 6,909 6,909 Total revenues 68,829 68,829 76,116 7,287 EXPENDITURES Current: Physical environment 161, , ,880 21,679 Total expenditures 161, , ,880 21,679 Excess (deficiency) of revenues over (under) expenditures (92,730) (92,730) (63,764) 28,966 OTHER FINANCING SOURCES (USES) Transfers in Total other financing sources and (uses) Net change in fund balances (92,730) (92,730) (63,764) 28,966 Fund balances - beginning 3,312,995 3,312,995 3,312,995 - Fund balances - ending $ 3,220,265 $ 3,220,265 $ 3,249,231 $ 28,

162 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Mosquito Control Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 3,325,505 $ 3,325,505 $ 3,380,157 $ 54,652 Intergovernmental 28, Interest income 1,004-49,787 49,787 Net inc (dec) in fair value of investments - - 7,793 7,793 Miscellaneous ,885 48,885 Total revenues 3,354,962 3,325,505 3,486, ,117 EXPENDITURES Current: Human services 3,410,638 3,481,131 3,039, ,218 Total expenditures 3,410,638 3,481,131 3,039, ,218 Excess (deficiency) of revenues over (under) expenditures (55,676) (155,626) 446, ,335 OTHER FINANCING SOURCES (USES) Transfers in 55,676 55,676 55,676 - Transfers out - (551,489) (551,489) - Total other financing sources and (uses) 55,676 (495,813) (495,813) - Net change in fund balances - (651,439) (49,104) 602,335 Fund balances - beginning 2,347,083 2,347,083 2,347,083 - Fund balances - ending $ 2,347,083 $ 1,695,644 $ 2,297,979 $ 602,

163 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Grants in Aid Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 6,844,649 $ 6,844,649 $ 6,844,649 $ - Interest income ,216 22,216 Net inc (dec) in fair value of investments - - 4,638 4,638 Total revenues 6,844,649 6,844,649 6,871,503 26,854 EXPENDITURES Current: General government 274, , ,764 39,840 Public safety 65,975 47,549-47,549 Human services 8,405,046 8,423,472 8,358,983 64,489 Total expenditures 8,745,625 8,745,625 8,593, ,878 Excess (deficiency) of revenues over (under) expenditures (1,900,976) (1,900,976) (1,722,244) 178,732 OTHER FINANCING SOURCES (USES) Transfers in 1,900,976 1,900,976 1,840,400 (60,576) Total other financing sources and (uses) 1,900,976 1,900,976 1,840,400 (60,576) Net change in fund balances , ,156 Fund balances - beginning 711, , ,609 - Fund balances - ending $ 711,609 $ 711,609 $ 829,765 $ 118,

164 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Federal, State & Local Grants Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Intergovernmental $ 10,260,521 $ 10,445,330 $ 4,528,739 $ (5,916,591) Charges for services Interest income 6,669 7,802 8,867 1,065 Net inc (dec) in fair value of investments Miscellaneous 492, , ,732 (143,916) Total revenues 10,760,180 10,808,880 4,750,299 (6,058,581) EXPENDITURES Current: General government 975, , , ,094 Public safety 1,378,640 2,190, ,455 1,253,803 Physical environment 3,197,090 3,005,939 1,404,566 1,601,373 Economic environment 4,598,035 4,187,542 1,549,838 2,637,704 Human services 288, , ,178 47,077 Culture and recreation 322, , ,645 (36) Total expenditures 10,760,180 11,015,028 4,953,013 6,062,015 Excess (deficiency) of revenues over (under) expenditures - (206,148) (202,714) 3,434 OTHER FINANCING SOURCES (USES) Transfers in - 226, ,678 (32) Transfers out - (20,562) (20,561) 1 Total other financing sources and (uses) - 206, ,117 (31) Net change in fund balances - - 3,403 3,403 Fund balances - beginning 231, , ,141 - Fund balances - ending $ 231,141 $ 231,141 $ 234,544 $ 3,

165 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Environmental Resources Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 1,244,399 $ 1,244,399 $ 1,266,946 $ 22,547 Permits, fees and special assessments 145, , ,775 14,326 Intergovernmental 383, , , ,340 Charges for services (95) Judgments, fines and forfeits 3,266 3,266 65,120 61,854 Interest income 98,329 98, ,494 36,165 Net inc (dec) in fair value of investments ,980 19,980 Miscellaneous 7,343 7,343 25,460 18,117 Total revenues 1,883,007 1,914,631 2,252, ,234 EXPENDITURES Current: Physical environment 2,737,357 2,682,670 2,066, ,752 Culture and recreation 509, , , ,671 Total expenditures 3,247,211 3,192,691 2,442, ,423 Excess (deficiency) of revenues over (under) expenditures (1,364,204) (1,278,060) (189,403) 1,088,657 OTHER FINANCING SOURCES (USES) Transfers in 149, , ,925 - Transfers out (433,120) (663,344) (663,343) 1 Total other financing sources and (uses) (283,195) (513,419) (513,418) 1 Net change in fund balances (1,647,399) (1,791,479) (702,821) 1,088,658 Fund balances - beginning 9,215,281 9,215,281 9,215,281 - Fund balances - ending $ 7,567,882 $ 7,423,802 $ 8,512,460 $ 1,088,

166 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Gifts, Donations and Recreation Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Permits, fees and special assessments $ - $ - $ 150 $ 150 Charges for services 419, , , ,833 Interest income 20,363 20,363 35,535 15,172 Net inc (dec) in fair value of investments - - 4,815 4,815 Contributions and donations 134, , ,712 (17,891) Miscellaneous 424, , ,761 89,111 Total revenues 998,921 1,014,421 1,250, ,190 EXPENDITURES Current: Culture and recreation 1,576,143 1,662,773 1,141, ,757 Total expenditures 1,576,143 1,662,773 1,141, ,757 Excess (deficiency) of revenues over (under) expenditures (577,222) (648,352) 109, ,947 OTHER FINANCING SOURCES (USES) Transfers in 18,040 22,361 22,357 (4) Transfers out - (3) (2) 1 Total other financing sources and (uses) 18,040 22,358 22,355 (3) Net change in fund balances (559,182) (625,994) 131, ,944 Fund balances - beginning 2,237,156 2,237,156 2,237,156 - Fund balances - ending $ 1,677,974 $ 1,611,162 $ 2,369,106 $ 757,

167 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Improvement Districts Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 85,500 $ 85,500 $ 88,170 $ 2,670 Permits, fees and special assessments 346, , ,409 5,659 Interest income 9,285 9,573 17,263 7,690 Net inc (dec) in fair value of investments - - 2,579 2,579 Miscellaneous - - 6,638 6,638 Total revenues 441, , ,059 25,236 EXPENDITURES Current: Physical environment 111, ,108 3, ,566 Transportation 253, , ,849 96,542 Total expenditures 364, , , ,108 Excess (deficiency) of revenues over (under) expenditures 77,036 77, , ,344 OTHER FINANCING SOURCES (USES) Transfers out (238,008) (263,602) (263,566) 36 Total other financing sources and (uses) (238,008) (263,602) (263,566) 36 Net change in fund balances (160,972) (186,278) 43, ,380 Fund balances - beginning 1,026,314 1,026,314 1,026,314 - Fund balances - ending $ 865,342 $ 840,036 $ 1,069,416 $ 229,

168 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Court Improvements Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Charges for services $ 2,597,482 $ 2,597,482 $ 2,682,376 $ 84,894 Judgments, fines and forfeits 294, , ,182 (5,902) Interest income 85,674 85,674 95,204 9,530 Net inc (dec) in fair value of investments ,245 11,245 Total revenues 2,977,240 2,977,240 3,077,007 99,767 EXPENDITURES Current: General government 1,913,004 1,918,004 1,248, ,149 Public safety 220, , ,071 - Human services 29,687 29,687 25,101 4,586 Total expenditures 2,163,425 2,184,762 1,511, ,735 Excess (deficiency) of revenues over (under) expenditures 813, ,478 1,565, ,502 OTHER FINANCING SOURCES (USES) Transfers in 160, , ,187 - Transfers out (1,294,441) (2,872,223) (2,782,180) 90,043 Total other financing sources and (uses) (1,133,621) (2,716,036) (2,625,993) 90,043 Net change in fund balances (319,806) (1,923,558) (1,060,013) 863,545 Fund balances - beginning 5,814,854 5,814,854 5,814,854 - Fund balances - ending $ 5,495,048 $ 3,891,296 $ 4,754,841 $ 863,

169 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street Lighting Districts Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 755,595 $ 755,595 $ 768,221 $ 12,626 Permits, fees and special assessments 74,872 74,872 76,608 1,736 Interest income 28,739 28,739 27,111 (1,628) Net inc (dec) in fair value of investments - - 4,002 4,002 Miscellaneous 7,438 7,438 7, Total revenues 866, , ,880 17,236 EXPENDITURES Current: Transportation 991, , , ,941 Total expenditures 991, , , ,941 Excess (deficiency) of revenues over (under) expenditures (124,414) (124,414) 34, ,177 OTHER FINANCING SOURCES (USES) Transfers out - (17,357) (17,357) - Total other financing sources and (uses) - (17,357) (17,357) - Net change in fund balances (124,414) (141,771) 17, ,177 Fund balances - beginning 1,633,019 1,633,019 1,633,019 - Fund balances - ending $ 1,508,605 $ 1,491,248 $ 1,650,425 $ 159,

170 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Arts in Public Places Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 1,010 $ 1,010 Net inc (dec) in fair value of investments Total revenues - - 1,162 1,162 EXPENDITURES Current: Culture and recreation 20,294 20, ,000 Total expenditures 20,294 20, ,000 Excess (deficiency) of revenues over (under) expenditures (20,294) (20,294) ,162 Net change in fund balances (20,294) (20,294) ,162 Fund balances - beginning 69,338 69,338 69,338 - Fund balances - ending $ 49,044 $ 49,044 $ 70,206 $ 21,

171 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Access Sarasota Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ 11,235 $ 11,235 $ 8,281 $ (2,954) Net inc (dec) in fair value of investments - - 1,235 1,235 Total revenues 11,235 11,235 9,516 (1,719) EXPENDITURES Current: Culture and recreation 265, , ,458 32,467 Total expenditures 265, , ,458 32,467 Excess (deficiency) of revenues over (under) expenditures (254,717) (658,690) (627,942) 30,748 OTHER FINANCING SOURCES (USES) Transfers out - (6,160) (6,160) - Total other financing sources and (uses) - (6,160) (6,160) - Net change in fund balances (254,717) (664,850) (634,102) 30,748 Fund balances - beginning 666, , ,432 - Fund balances - ending $ 411,715 $ 1,582 $ 32,330 $ 30,

172 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Economic Development Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 1,774,649 $ 1,774,649 $ 1,799,634 $ 24,985 Interest income 138, , , ,990 Net inc (dec) in fair value of investments ,710 39,710 Contributions and donations 137, , ,245 - Miscellaneous 108, , , ,387 Total revenues 2,159,317 2,171,043 2,671, ,072 EXPENDITURES Current: Economic environment 10,173,523 9,787,752 2,626,026 7,161,726 Human Services - 455, , ,000 Total expenditures 10,173,523 10,242,978 2,881,252 7,361,726 Excess (deficiency) of revenues over (under) expenditures (8,014,206) (8,071,935) (210,137) 7,861,798 OTHER FINANCING SOURCES (USES) Transfers in 367, , ,767 - Transfers out (377,625) (537,625) (465,509) 72,116 Total other financing sources and (uses) (9,858) (169,858) (97,742) 72,116 Net change in fund balances (8,024,064) (8,241,793) (307,879) 7,933,914 Fund balances - beginning 18,483,274 18,483,274 18,483,274 - Fund balances - ending $ 10,459,210 $ 10,241,481 $ 18,175,395 $ 7,933,

173 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Moving Violation Surcharge Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Judgments, fines and forfeits $ 344,075 $ 344,075 $ 362,198 $ 18,123 Interest income 1,234 1,234 1, Net inc (dec) in fair value of investments Total revenues 345, , ,331 19,022 EXPENDITURES Current: Public safety 416, , ,113 29,876 Total expenditures 416, , ,113 29,876 Excess (deficiency) of revenues over (under) expenditures (71,680) (71,680) (22,782) 48,898 Net change in fund balances (71,680) (71,680) (22,782) 48,898 Fund balances - beginning 161, , ,681 - Fund balances - ending $ 90,001 $ 90,001 $ 138,899 $ 48,

174 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Law Enforcement Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Judgments, fines and forfeits $ 100,000 $ 100,000 $ 90,844 $ (9,156) Interest income - - 4,766 4,766 Net inc (dec) in fair value of investments Total revenues 100, ,000 96,136 (3,864) EXPENDITURES Current: Public safety 100, ,000 91,575 8,425 Total expenditures 100, ,000 91,575 8,425 Excess (deficiency) of revenues over (under) expenditures - - 4,561 4,561 Net change in fund balances - - 4,561 4,561 Fund balances - beginning 367, , ,394 - Fund balances - ending $ 367,394 $ 367,394 $ 371,955 $ 4,

175 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sheriff's Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Judgments, fines and forfeits $ - $ - $ 145,678 $ 145,678 Miscellaneous - - 2,565,260 2,565,260 Total revenues - - 2,710,938 2,710,938 EXPENDITURES Current: Public safety - - 2,879,882 (2,879,882) Total expenditures - - 2,879,882 (2,879,882) Excess (deficiency) of revenues over (under) expenditures - - (168,944) (168,944) Net change in fund balances - - (168,944) (168,944) Fund balances - beginning 1,581,745 1,581,745 1,581,745 - Fund balances - ending $ 1,581,745 $ 1,581,745 $ 1,412,801 $ (168,944) 173

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177 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Clerk's Special Revenue Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Intergovernmental $ - $ 77,205 $ 77,205 $ - Charges for services 7,386,352 7,035,352 7,237, ,060 Judgments, fines and forfeits 1,844,235 1,788,754 1,754,379 (34,375) Interest income 94,675 94, ,928 16,253 Total revenues 9,325,262 8,995,986 9,179, ,938 EXPENDITURES Current: General government 9,935,960 9,624,516 9,161, ,871 Total expenditures 9,935,960 9,624,516 9,161, ,871 Excess (deficiency) of revenues over (under) expenditures (610,698) (628,530) 18, ,809 Net change in fund balances (610,698) (628,530) 18, ,809 Fund balances - beginning 1,838,913 1,838,913 1,838,913 - Fund balances - ending $ 1,228,215 $ 1,210,383 $ 1,857,192 $ 646,

178 Subcombining Balance Sheet Nonmajor Debt Service Funds September 30, 2015 Communications Limited Communications Services Tax Ad Valorem Tax Services Tax Series 2005A Series 2005 Series 2005B ASSETS Cash and investments $ 78,713 $ 619,520 $ 84,882 Accounts receivable - other Interest receivable 1,635 4,147 1,354 Total assets $ 80,348 $ 623,667 $ 86,236 LIABILITIES AND FUND BALANCES Fund balances: Restricted $ 80,348 $ 623,667 $ 86,236 Total fund balances 80, ,667 86,236 Total liabilities and fund balances $ 80,348 $ 623,667 $ 86,

179 Five-Cent Local Option Communications Limited Infrastructure Fuel Tax Services Tax Ad Valorem Tax Sales Surtax Series 2005 Series 2006 Series 2008 Series 2008A $ 96,126 $ 85,984 $ 575,490 $ 5,324, ,486 1,708 3,870 9,180 $ 97,612 $ 87,692 $ 579,360 $ 5,334,117 $ 97,612 $ 87,692 $ 579,360 $ 5,334,117 97,612 87, ,360 5,334,117 $ 97,612 $ 87,692 $ 579,360 $ 5,334,117 (Continued) 177

180 Subcombining Balance Sheet Nonmajor Debt Service Funds September 30, 2015 Infrastructure Sales Surtax Bank Term Commercial Series 2008B Loans Paper ASSETS Cash and investments $ 4,815,267 $ 845,848 $ 167,937 Accounts receivable - other ,877 Interest receivable 8,491 21, Total assets $ 4,823,758 $ 867,098 $ 195,117 LIABILITIES AND FUND BALANCES Fund balances: Restricted $ 4,823,758 $ 867,098 $ 195,117 Total fund balances 4,823, , ,117 Total liabilities and fund balances $ 4,823,758 $ 867,098 $ 195,

181 Second Infrastructure Total Capital Communications Guaranteed Sales Surtax Nonmajor Improvement Services Tax Entitlement Series 2014A Debt Service Series 2010 Series 2010 Series 2013 Series 2015 Funds $ 21,526 $ 23,784 $ 295,145 $ 39,781 $ 13,074, ,877 1,897 1,868 1,396 3,387 61,972 $ 23,423 $ 25,652 $ 296,541 $ 43,168 $ 13,163,789 $ 23,423 $ 25,652 $ 296,541 $ 43,168 $ 13,163,789 23,423 25, ,541 43,168 13,163,789 $ 23,423 $ 25,652 $ 296,541 $ 43,168 $ 13,163,

182 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds For the Year Ended September 30, 2015 Communications Limited Communications Services Tax Ad Valorem Tax Services Tax Series 2005A Series 2005 Series 2005B REVENUES Taxes $ - $ 1,706,778 $ - Intergovernmental Interest income 6,254 24,564 5,369 Net inc (dec) in fair value of investments 992 4, Total revenues 7,246 1,735,655 6,211 EXPENDITURES Current: Debt service: Principal 755,000 1,385, ,000 Interest and fiscal charges 28, ,894 23,688 Debt issuance costs Refunding other sources to escrow Total expenditures 783,369 1,691, ,688 Excess (deficiency) of revenues over (under) expenditures (776,123) 43,761 (622,477) OTHER FINANCIAL SOURCES (USES) Transfers in 783, ,688 Transfers out Note issuance Revenue bond issuance Advance refunding bond proceeds to escrow Premium of bond issuance Total other financing sources (uses) 783, ,688 Net change in fund balances 7,246 43,761 6,211 Fund balances - beginning 73, ,906 80,025 Fund balances - ending $ 80,348 $ 623,667 $ 86,

183 Five-Cent Local Option Communications Limited Infrastructure Fuel Tax Services Tax Ad Valorem Tax Sales Surtax Series 2005 Series 2006 Series 2008 Series 2008A $ - $ - $ 1,297,559 $ ,127 6,322 22, , (119) 16,344 6,985 7,153 1,320, , , ,000 1,365,000 4,395,000 29,200 83, , , , , ,200 1,122,562 1,504,825 6,043,213 (727,215) (1,115,409) (184,812) (5,906,797) 734,200 1,122,561-5,906,113 - (51,885) (220,224) (1,837,624) - 11,430,000 70,740, ,490,000 - (11,378,115) (70,519,776) (39,167,879) ,942, ,200 1,122,561-4,332,938 6,985 7,152 (184,812) (1,573,859) 90,627 80, ,172 6,907,976 $ 97,612 $ 87,692 $ 579,360 $ 5,334,117 (Continued) 181

184 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds For the Year Ended September 30, 2015 Infrastructure Sales Surtax Bank Term Commercial Series 2008B Loans Paper REVENUES Taxes $ - $ 4,230,462 $ - Intergovernmental Interest income 109,626 93,764 1,806 Net inc (dec) in fair value of investments 12,466 27, Total revenues 122,092 4,351,292 2,001 EXPENDITURES Current: Debt service: Principal 4,140,000 8,184,000 1,625,000 Interest and fiscal charges 597,406 3,511, ,252 Debt issuance costs - 302,009 8,000 Refunding other sources to escrow Total expenditures 4,737,406 11,997,018 1,815,252 Excess (deficiency) of revenues over (under) expenditures (4,615,314) (7,645,726) (1,813,251) OTHER FINANCIAL SOURCES (USES) Transfers in 4,642,407 8,245,106 1,819,979 Transfers out (2,448,502) - - Note issuance Revenue bond issuance 37,355, Advance refunding bond proceeds to escrow (44,372,371) - - Premium of bond issuance 7,320, Total other financing sources (uses) 2,496,676 8,245,106 1,819,979 Net change in fund balances (2,118,638) 599,380 6,728 Fund balances - beginning 6,942, , ,389 Fund balances - ending $ 4,823,758 $ 867,098 $ 195,

185 Second Infrastructure Total Capital Communications Guaranteed Sales Surtax Nonmajor Improvement Services Tax Entitlement Series 2014A Debt Service Series 2010 Series 2010 Series 2013 Series 2015 Funds $ - $ - $ - $ - $ 7,234, , , ,190 5,532 5,521 5,004 10, ,412 1,162 1,180 1,967 3,873 71, , ,624 6,971 14,751 8,566, , , ,000-25,124,000 1,199,826 1,175, ,650 2,574,072 11,457, , , ,020,650 1,619,826 1,580,308 1,079,650 3,110,876 38,449,087 (1,157,865) (1,192,684) (1,072,679) (3,096,125) (29,882,716) 1,164,561 1,199,636 1,356,842 3,139,293 30,742, (4,558,235) ,170, ,845, (165,438,141) ,262,470 1,164,561 1,199,636 1,356,842 3,139,293 27,023,849 6,696 6, ,163 43,168 (2,858,867) 16,727 18,700 12,378-16,022,656 $ 23,423 $ 25,652 $ 296,541 $ 43,168 $ 13,163,

186 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Services Tax Series 2005A Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 6,254 $ 6,254 Net inc (dec) in fair value of investments Total revenues - - 7,246 7,246 EXPENDITURES Debt service: Principal 755, , ,000 - Interest and fiscal charges 28,369 28,369 28,369 - Total expenditures 783, , ,369 - Excess (deficiency) of revenues over (under) expenditures (783,369) (783,369) (776,123) 7,246 OTHER FINANCING SOURCES (USES) Transfers in 783, , ,369 - Total other financing sources (uses) 783, , ,369 - Net change in fund balances - - 7,246 7,246 Fund balances - beginning 73,102 73,102 73,102 - Fund balances - ending $ 73,102 $ 73,102 $ 80,348 $ 7,

187 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Limited Ad Valorem Tax Series 2005 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 1,677,211 $ 1,677,211 $ 1,706,778 $ 29,567 Interest income 19,800 19,800 24,564 4,764 Net inc (dec) in fair value of investments - - 4,313 4,313 Total revenues 1,697,011 1,697,011 1,735,655 38,644 EXPENDITURES Debt service: Principal 1,385,000 1,385,000 1,385,000 - Interest and fiscal charges 321, , ,894 14,524 Total expenditures 1,706,418 1,706,418 1,691,894 14,524 Excess (deficiency) of revenues over (under) expenditures (9,407) (9,407) 43,761 53,168 Net change in fund balances (9,407) (9,407) 43,761 53,168 Fund balances - beginning 579, , ,906 - Fund balances - ending $ 570,499 $ 570,499 $ 623,667 $ 53,

188 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Services Tax Series 2005B Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 5,369 $ 5,369 Net inc (dec) in fair value of investments Total revenues - - 6,211 6,211 EXPENDITURES Debt service: Principal 605, , ,000 - Interest and fiscal charges 23,688 23,688 23,688 - Total expenditures 628, , ,688 - Excess (deficiency) of revenues over (under) expenditures (628,688) (628,688) (622,477) 6,211 OTHER FINANCING SOURCES (USES) Transfers in 628, , ,688 - Total other financing sources (uses) 628, , ,688 - Net change in fund balances - - 6,211 6,211 Fund balances - beginning 80,025 80,025 80,025 - Fund balances - ending $ 80,025 $ 80,025 $ 86,236 $ 6,

189 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Five-Cent Local Option Fuel Tax Series 2005 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 6,127 $ 6,127 Net inc (dec) in fair value of investments Total revenues - - 6,985 6,985 EXPENDITURES Debt service: Principal 705, , ,000 - Interest and fiscal charges 29,200 29,200 29,200 - Total expenditures 734, , ,200 - Excess (deficiency) of revenues over (under) expenditures (734,200) (734,200) (727,215) 6,985 OTHER FINANCING SOURCES (USES) Transfers in 734, , ,200 - Total other financing sources (uses) 734, , ,200 - Net change in fund balances - - 6,985 6,985 Fund balances - beginning 90,627 90,627 90,627 - Fund balances - ending $ 90,627 $ 90,627 $ 97,612 $ 6,

190 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Services Tax Series 2006 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 6,322 $ 6,322 Net inc (dec) in fair value of investments Total revenues - - 7,153 7,153 EXPENDITURES Debt service: Principal 805, , ,000 - Interest and fiscal charges 551,625 83,500 83,500 - Refunding other sources to escrow - 234, ,062 1 Total expenditures 1,356,625 1,122,563 1,122,562 1 Excess (deficiency) of revenues over (under) expenditures (1,356,625) (1,122,563) (1,115,409) 7,154 OTHER FINANCING SOURCES (USES) Transfers in 1,356,625 1,122,562 1,122,561 (1) Transfers out - (51,884) (51,885) (1) Note issuance - 11,430,000 11,430,000 - Advance refunding bond proceeds to escrow - (11,378,115) (11,378,115) - Total other financing sources (uses) 1,356,625 1,122,563 1,122,561 (2) Net change in fund balances - - 7,152 7,152 Fund balances - beginning 80,540 80,540 80,540 - Fund balances - ending $ 80,540 $ 80,540 $ 87,692 $ 7,

191 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Limited Ad Valorem Tax Series 2008 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 4,701,149 $ 1,492,642 $ 1,297,559 $ (195,083) Interest income 45,000-22,573 22,573 Net inc (dec) in fair value of investments - - (119) (119) Total revenues 4,746,149 1,492,642 1,320,013 (172,629) EXPENDITURES Debt service: Principal 1,365,000 1,365,000 1,365,000 - Interest and fiscal charges 3,259, , ,825 8,304 Total expenditures 4,624,614 1,513,129 1,504,825 8,304 Excess (deficiency) of revenues over (under) expenditures 121,535 (20,487) (184,812) (164,325) OTHER FINANCING SOURCES (USES) Transfers out - (220,224) (220,224) - Note issuance - 70,740,000 70,740,000 - Advance refunding bond proceeds to escrow - (70,519,777) (70,519,776) 1 Total other financing sources (uses) - (1) - 1 Net change in fund balances 121,535 (20,488) (184,812) (164,324) Fund balances - beginning 764, , ,172 - Fund balances - ending $ 885,707 $ 743,684 $ 579,360 $ (164,324) 189

192 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Infrastructure Sales Surtax Revenue Series 2008A Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ 137,100 $ 137,100 $ 120,072 $ (17,028) Net inc (dec) in fair value of investments ,344 16,344 Total revenues 137, , ,416 (684) EXPENDITURES Debt service: Principal 4,395,000 4,395,000 4,395,000 - Interest and fiscal charges 2,434, , ,625 - Refunding other sources to escrow - 786, ,588 - Total expenditures 6,829,800 6,043,213 6,043,213 - Excess (deficiency) of revenues over (under) expenditures (6,692,700) (5,906,113) (5,906,797) (684) OTHER FINANCING SOURCES (USES) Transfers in 6,692,700 5,906,113 5,906,113 - Transfers out - (1,837,624) (1,837,624) - Revenue bond issuance - 33,490,000 33,490,000 - Advance refunding bond proceeds to escrow - (39,167,879) (39,167,879) - Premium on bond issuance - 5,942,328 5,942,328 - Total other financing sources (uses) 6,692,700 4,332,938 4,332,938 - Net change in fund balances - (1,573,175) (1,573,859) (684) Fund balances - beginning 6,907,976 6,907,976 6,907,976 - Fund balances - ending $ 6,907,976 $ 5,334,801 $ 5,334,117 $ (684) 190

193 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Infrastructure Sales Surtax Revenue Series 2008B Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ 95,000 $ 95,000 $ 109,626 $ 14,626 Net inc (dec) in fair value of investments ,466 12,466 Total revenues 95,000 95, ,092 27,092 EXPENDITURES Debt service: Principal 4,140,000 4,140,000 4,140,000 - Interest and fiscal charges 597, , ,406 1 Total expenditures 4,737,407 4,737,407 4,737,406 1 Excess (deficiency) of revenues over (under) expenditures (4,642,407) (4,642,407) (4,615,314) 27,093 OTHER FINANCING SOURCES (USES) Transfers in 4,642,407 4,642,407 4,642,407 - Transfers out (270,055) (2,448,503) (2,448,502) 1 Revenue bond issuance 37,580,000 37,355,000 37,355,000 - Advance refunding bond proceeds to escrow (44,680,293) (44,372,371) (44,372,371) - Premium on bond issuance 7,370,348 7,320,143 7,320,142 (1) Total other financing sources (uses) 4,642,407 2,496,676 2,496,676 - Net change in fund balances - (2,145,731) (2,118,638) 27,093 Fund balances - beginning 6,942,396 6,942,396 6,942,396 - Fund balances - ending $ 6,942,396 $ 4,796,665 $ 4,823,758 $ 27,

194 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Bank Term Loans For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Taxes $ 731,198 $ 3,939,705 $ 4,230,462 $ 290,757 Interest income - 40,767 93,764 52,997 Net inc (dec) in fair value of investments ,066 27,066 Total revenues 731,198 3,980,472 4,351, ,820 EXPENDITURES Debt service: Principal 5,329,000 8,184,000 8,184,000 - Interest and fiscal charges 1,761,740 3,901,078 3,511, ,069 Debt issuance costs 50, , ,009 78,599 Total expenditures 7,140,740 12,465,686 11,997, ,668 Excess (deficiency) of revenues over (under) expenditures (6,409,542) (8,485,214) (7,645,726) 839,488 OTHER FINANCING SOURCES (USES) Transfers in 6,291,806 8,467,560 8,245,106 (222,454) Total other financing sources (uses) 6,291,806 8,467,560 8,245,106 (222,454) Net change in fund balances (117,736) (17,654) 599, ,034 Fund balances - beginning 267, , ,718 - Fund balances - ending $ 149,982 $ 250,064 $ 867,098 $ 617,

195 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Commercial Paper Debt Service Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 1,806 $ 1,806 Net inc (dec) in fair value of investments Total revenues - - 2,001 2,001 EXPENDITURES Debt service: Principal 1,217,000 1,625,000 1,625,000 - Interest and fiscal charges 514, , , ,736 Debt issuance costs 13,000 25,000 8,000 17,000 Total expenditures 1,744,256 2,200,988 1,815, ,736 Excess (deficiency) of revenues over (under) expenditures (1,744,256) (2,200,988) (1,813,251) 387,737 OTHER FINANCING SOURCES (USES) Transfers in 1,744,256 2,200,988 1,819,979 (381,009) Total other financing sources (uses) 1,744,256 2,200,988 1,819,979 (381,009) Net change in fund balances - - 6,728 6,728 Fund balances - beginning 188, , ,389 - Fund balances - ending $ 188,389 $ 188,389 $ 195,117 $ 6,

196 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Capital Improvement Series 2010 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Intergovernmental $ 491,118 $ 455,266 $ 455,267 $ 1 Interest income - - 5,532 5,532 Net inc (dec) in fair value of investments - - 1,162 1,162 Total revenues 491, , ,961 6,695 EXPENDITURES Debt service: Principal 420, , ,000 - Interest and fiscal charges 1,199,827 1,199,827 1,199,826 1 Total expenditures 1,619,827 1,619,827 1,619,826 1 Excess (deficiency) of revenues over (under) expenditures (1,128,709) (1,164,561) (1,157,865) 6,696 OTHER FINANCING SOURCES (USES) Transfers in 1,128,709 1,164,561 1,164,561 - Total other financing sources (uses) 1,128,709 1,164,561 1,164,561 - Net change in fund balances - - 6,696 6,696 Fund balances - beginning 16,727 16,727 16,727 - Fund balances - ending $ 16,727 $ 16,727 $ 23,423 $ 6,

197 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Communications Service Tax Series 2010 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Intergovernmental $ 410,920 $ 380,922 $ 380,923 $ 1 Interest income - - 5,521 5,521 Net inc (dec) in fair value of investments - - 1,180 1,180 Total revenues 410, , ,624 6,702 EXPENDITURES Debt service: Principal 405, , ,000 - Interest and fiscal charges 1,175,558 1,175,558 1,175, Total expenditures 1,580,558 1,580,558 1,580, Excess (deficiency) of revenues over (under) expenditures (1,169,638) (1,199,636) (1,192,684) 6,952 OTHER FINANCING SOURCES (USES) Transfers in 1,169,638 1,199,636 1,199,636 - Total other financing sources (uses) 1,169,638 1,199,636 1,199,636 - Net change in fund balances - - 6,952 6,952 Fund balances - beginning 18,700 18,700 18,700 - Fund balances - ending $ 18,700 $ 18,700 $ 25,652 $ 6,

198 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Second Guaranteed Entitlement Series 2013 Fund For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ - $ - $ 5,004 $ 5,004 Net inc (dec) in fair value of investments - - 1,967 1,967 Total revenues - - 6,971 6,971 EXPENDITURES Debt service: Principal 335, , ,000 - Interest and fiscal charges 744,900 1,021, , ,192 Total expenditures 1,079,900 1,356,842 1,079, ,192 Excess (deficiency) of revenues over (under) expenditures (1,079,900) (1,356,842) (1,072,679) 284,163 OTHER FINANCING SOURCES (USES) Transfers in 1,079,900 1,356,842 1,356,842 - Total other financing sources (uses) 1,079,900 1,356,842 1,356,842 - Net change in fund balances , ,163 Fund balances - beginning 12,378 12,378 12,378 - Fund balances - ending $ 12,378 $ 12,378 $ 296,541 $ 284,

199 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Infrastructure Sales Surtax Series 2014A and Series 2015 For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget - REVENUES Interest income $ 3,000 $ 3,000 $ 10,878 $ 7,878 Net inc (dec) in fair value of investments - - 3,873 3,873 Total revenues 3,000 3,000 14,751 11,751 EXPENDITURES Debt service: Interest and fiscal charges 1,880,000 2,575,073 2,574,072 1,001 Debt issuance costs 269, , ,804 30,417 Total expenditures 2,149,055 3,142,294 3,110,876 31,418 Excess (deficiency) of revenues over (under) expenditures (2,146,055) (3,139,294) (3,096,125) 43,169 OTHER FINANCING SOURCES (USES) Transfers in 2,146,055 3,139,294 3,139,293 (1) Total other financing sources (uses) 2,146,055 3,139,294 3,139,293 (1) Net change in fund balances ,168 43,168 Fund balances - beginning Fund balances - ending $ - $ - $ 43,168 $ 43,

200 Subcombining Balance Sheet Nonmajor Capital Projects Funds September 30, 2015 Motor Fuels Commercial Impact Taxes Paper Fees ASSETS Cash and investments $ 10,810,816 $ 9,392,081 $ 26,510,368 Accounts receivable other Interest receivable 13,727 20,268 52,525 Intergovernmental receivable Total assets $ 10,824,543 $ 9,412,349 $ 26,562,893 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 54 $ 239,426 $ 338,267 Contracts and retainages payable 3,570 1,002,171 52,810 Unearned revenue Advances from other funds Total liabilities 3,624 1,241, ,077 Fund balances: Restricted 10,820,919 8,170,752 26,171,816 Committed Total fund balances 10,820,919 8,170,752 26,171,816 Total liabilities and fund balances $ 10,824,543 $ 9,412,349 $ 26,562,

201 Total All Other Nonmajor Ad Valorem Capital Capital Projects Taxes Projects Funds $ 20,921,234 $ 40,215,056 $ 107,849,555-16,560 16,560 41,578 83, ,384-5,350,702 5,350,702 $ 20,962,812 $ 45,665,604 $ 113,428,201 $ 1,110 $ 10,154 $ 589,011 9,911 3,506,080 4,574, , ,000-2,143,000 2,143,000 11,021 5,829,234 7,476,553 20,951,791 20,550,349 86,665,627-19,286,021 19,286,021 20,951,791 39,836, ,951,648 $ 20,962,812 $ 45,665,604 $ 113,428,

202 Subcombining Statement of Revenues, Expenditures And Changes In Fund Balances Nonmajor Capital Projects Funds For the Year Ended September 30, 2015 Motor Fuels Commercial Impact Taxes Paper Fees REVENUES Taxes $ - $ - $ - Intergovernmental Interest income 103, , ,822 Net inc (dec) in fair value of investments 24,839 26,766 52,388 Contributions and donations Miscellaneous ,344 6,631 Total revenues 129, , ,841 EXPENDITURES Current: General government - 1,332,186 - Public safety - 3,799,246 4,383,355 Physical environment - 257,107 - Transportation 979,637 1,139,653 5,519,126 Culture and recreation - 74,050 3,574,831 Total expenditures 979,637 6,602,242 13,477,312 Excess (deficiency) of revenues over (under) expenditures (850,011) (6,409,472) (13,064,471) OTHER FINANCING SOURCES (USES) Transfers in 4,000,000-9,682,531 Transfers out - (1,876,617) (23,328) Commercial paper issuance - 6,066,000 - Total other financing sources and (uses) 4,000,000 4,189,383 9,659,203 Net change in fund balances 3,149,989 (2,220,089) (3,405,268) Fund balances - beginning 7,670,930 10,390,841 29,577,084 Fund balances - ending $ 10,820,919 $ 8,170,752 $ 26,171,

203 Total All Other Nonmajor Ad Valorem Capital Capital Projects Taxes Projects Funds $ 2,129,863 $ - $ 2,129,863-11,347,410 11,347, , ,811 1,450,914 46,479 96, ,915 - (208,339) (208,339) ,801 2,466,002 11,794,325 14,995,564-7,409,748 8,741,934-4,421,327 12,603,928 77, , ,517-10,738,222 18,376,638 91,835 2,238,031 5,978, ,151 25,184,422 46,412,764 2,296,851 (13,390,097) (31,417,200) 53,601 12,642,261 26,378,393 - (3,365,507) (5,265,452) - - 6,066,000 53,601 9,276,754 27,178,941 2,350,452 (4,113,343) (4,238,259) 18,601,339 43,949, ,189,907 $ 20,951,791 $ 39,836,370 $ 105,951,

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205 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Library Endowments For the Year Ended September 30, 2015 Budgeted Amounts Actual Amounts Variance with Original Final GAAP Basis Final Budget REVENUES Interest income $ 18,040 $ 21,854 $ 21,853 $ (1) Net increase (decrease) in fair value of investments ,247 2,740 Total revenues 18,040 22,361 25,100 2,739 OTHER FINANCING SOURCES (USES) Transfers out (18,040) (22,361) (22,357) 4 Total other financing sources and (uses) (18,040) (22,361) (22,357) 4 Net change in fund balances - - 2,743 2,743 Fund balances - beginning 1,497,565 1,497,565 1,497,565 - Fund balances - ending $ 1,497,565 $ 1,497,565 $ 1,500,308 $ 2,

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207 Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Fleet Services To account for the rental of motor vehicles to other departments and related costs. Information Technology To account for the operation of the County s Computer Replacement and Information Technology Enhancement programs. Risk Management To account for the self insurance cost of providing coverage for property, general and vehicle liability. Medical Benefits To account for the provisions of health and dental benefits to County employees and their dependents through the County s self insurance program. Workers Compensation To account for payment of worker s compensation claims, in lieu of insurance. Public Works To account for the County s overhead charges related to the design and construction of capital improvement projects. Field and General Services To account for the County s internal operational and maintenance services. 205

208 Combining Statement of Net Position Internal Service Funds September 30, 2015 Fleet Information Risk Medical Services Technology Management Benefits ASSETS Current assets: Cash and investments $ 23,365,111 $ 12,428,550 $ 3,699,835 $ 12,046,845 Interest receivable 43,282 26,540 7,288 11,390 Accounts receivable 208, ,250 Prepaid items - - 1,132,179 - Intergovernmental receivable 70, , ,201 Inventories 118, Total current assets 23,805,692 12,717,383 4,839,302 13,099,686 Non-current assets: Restricted assets Intergovernmental receivable OPEB assets held in trust ,998,000 Total non-current restricted assets ,998,000 Non-depreciable capital assets - 6,012, Depreciable capital assets (net) 21,342,206 5,344,644 5,779 29,932 Total non-current assets 21,342,206 11,357,523 5,779 7,027,932 Total assets 45,147,898 24,074,906 4,845,081 20,127,618 DEFERRED OUTFLOWS OF RESOURCES Deferred charges for pensions 170, ,058 28,373 51,125 Total deferred outflows of resources 170, ,058 28,373 51,125 LIABILITIES Current liabilities: Accounts payable 27,505 83,711 15, ,047 Wages and benefits payable 68, ,896 12,551 23,252 Contracts and retainages payable 1,631, ,192 49,114 7,517 Intergovernmental payable 1,649 44,840-8,729 Compensated absences 141, ,253 20,034 48,658 Claims and judgments payable ,452 4,500,000 Total current liabilities 1,871,166 1,087, ,652 5,089,203 Non-current liabilities: Net pension liability 976,608 2,831, , ,444 Compensated absences 10,650 31,105 1,508 3,662 Claims and judgments payable - - 1,410,165 - Total non-current liabilities 987,258 2,862,915 1,573, ,106 Total liabilities 2,858,424 3,950,807 2,543,620 5,385,309 DEFERRED INFLOWS OF RESOURCES Deferred charges for pensions 196, ,784 32,712 58,945 Total deferred inflows of resources 196, ,784 32,712 58,945 NET POSITION Net investment in capital assets 21,342,206 11,357,523 5,779 29,932 Restricted for other purposes ,998,000 Unrestricted 20,921,153 8,690,850 2,291,343 7,706,557 Total net position $ 42,263,359 $ 20,048,373 $ 2,297,122 $ 14,734,

209 Field and Workers' General Compensation Public Works Services Total $ 16,034,123 $ 899,800 $ 543,434 $ 69,017,698 32,091 1, , , ,132, , ,369,008 2,487,683 16,066, ,971 2,913,248 74,342,496 79, , ,998,000 79, ,077, ,012,879 6,723 4, ,434 26,835,369 86,014 4, ,434 39,925,539 16,152, ,622 3,014, ,268,035 17, ,349 27,615 1,197,203 17, ,349 27,615 1,197,203 90,449 15,916 54, ,846 7, ,972 10, , ,639 2,227, ,218 21, ,185 22,999 1,039,373 2,643, ,016,308 2,764, , ,203 12,626, ,688 2,324, ,962 6,848,186 1,637 27,939 1,731 78,232 10,307, ,717,743 10,411,903 2,352, ,693 18,644,161 13,175,907 2,905, ,896 31,270,354 20, ,505 31,839 1,380,329 20, ,505 31,839 1,380,329 6,723 4, ,434 32,848, ,998,000 2,966,852 (2,066,576) 2,458,128 42,968,307 $ 2,973,575 $ (2,061,925) $ 2,559,562 $ 82,814,

210 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the Year Ended September 30, 2015 Fleet Information Risk Services Technology Management OPERATING REVENUES Charges for services $ 21,547,786 $ 18,162,119 $ 4,807,944 Other revenue 11,553 6, ,706 Total operating revenues 21,559,339 18,168,342 4,992,650 OPERATING EXPENSES Personal services 2,233,845 6,261, ,468 General and administrative 7,846,601 8,917,526 3,164,555 Claims paid - - 1,487,557 Depreciation and amortization 6,703,272 1,519,375 1,097 Total operating expenses 16,783,718 16,698,048 5,071,677 Operating income (loss) 4,775,621 1,470,294 (79,027) NONOPERATING REVENUES (EXPENSES) Interest income 309, ,010 53,157 Net inc (dec) in fair value of investments 34,612 15,515 4,987 Gain on disposition of assets 1,027, Total nonoperating revenues 1,371, ,525 58,144 Income (loss) before contributions and transfers 6,147,474 1,672,819 (20,883) Capital contributions Transfers in Transfers out (1,300,122) (428,862) (18) Change in net position 4,847,352 1,243,957 (20,901) Net position - beginning, as previously stated 38,563,845 21,982,669 2,485,871 Prior Period adjustment, refer to Note 14 (1,147,838) (3,178,253) (167,848) Net position - beginning 37,416,007 18,804,416 2,318,023 Net position - ending $ 42,263,359 $ 20,048,373 $ 2,297,

211 Field and Medical Workers' General Benefits Compensation Public Works Services Total $ 42,041,519 $ 4,839,141 $ 7,157,413 $ 600,250 $ 99,156, , , ,345,013 42,850,055 5,173,136 7,157, , ,501, , ,831 5,029, ,521 15,427,690 5,371,901 1,124,011 1,904, ,063 28,566,525 35,831,289 4,219, ,537,849 10,071 1,631 4,365 29,785 8,269,596 42,052,206 5,603,476 6,939, ,369 93,801, ,849 (430,340) 218,247 (53,119) 6,699, , ,541 5,362 10, ,944 8,869 24,441 1,098 1,483 91, ,027, , ,982 6,460 12,237 2,016, ,450 (184,358) 224,707 (40,882) 8,716, ,255, ,949-1,597,370 - (27) - (750,185) (2,479,214) 2,172,871 (184,385) 566,656 (791,067) 7,834,483 12,868,040 3,271,512 78,574 3,510,146 82,760,657 (306,422) (113,552) (2,707,155) (159,517) (7,780,585) 12,561,618 3,157,960 (2,628,581) 3,350,629 74,980,072 $ 14,734,489 $ 2,973,575 $ (2,061,925) $ 2,559,562 $ 82,814,

212 Combining Statement of Cash Flows Internal Service Funds For the Year Ended September 30, 2015 Fleet Information Services Technology CASH FLOWS FROM OPERATING ACTIVITIES Cash received for services $ 21,583,028 $ 16,414,904 Cash received for other revenues 11,554 6,223 Cash received for outside services - 1,704,752 Cash payments for goods and services (7,665,654) (8,814,256) Cash payments to employees (2,370,995) (6,523,023) Net cash provided (used) by operating activities 11,557,933 2,788,600 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash transfers from other funds - - Cash transfers to other funds (1,300,122) (428,862) Net cash provided (used) by noncapital financing activities (1,300,122) (428,862) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 819,668 - Acquisition and construction of capital assets (8,799,144) (2,516,849) Net cash provided (used) by capital and related financing activities (7,979,476) (2,516,849) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 341, ,216 Net increase (decrease) in cash 2,619,765 45,105 Cash and investments, October 1, ,745,346 12,383,445 Cash and investments, September 30, 2015 $ 23,365,111 $ 12,428,

213 Field and Risk Medical Workers' General Management Benefits Compensation Public Works Services Total $ 4,807,944 $ 42,090,889 $ 4,870,275 $ 7,157,414 $ 600,250 $ 97,524, , , , ,320, ,704,752 (4,676,334) (42,116,697) (4,778,282) (1,901,434) (368,514) (70,321,171) (420,387) (842,653) (266,767) (5,434,568) (381,157) (16,239,550) (90,526) (97,759) 159,222 (178,588) (149,421) 13,989,461-1,255, ,949-1,597,370 (18) - (27) - (750,185) (2,479,214) (18) 1,255,421 (27) 341,949 (750,185) (881,844) ,668 (6,153) (5,853) - (1,926) - (11,329,925) (6,153) (5,853) - (1,926) - (10,510,257) 58, , ,051 6,226 13, ,273 (38,325) 1,276, , ,661 (885,804) 3,589,633 3,738,160 10,769,860 15,629, ,139 1,429,238 65,428,065 $ 3,699,835 $ 12,046,845 $ 16,034,123 $ 899,800 $ 543,434 $ 69,017,698 (Continued) 211

214 Combining Statement of Cash Flows-Continued Internal Service Funds For the Year Ended September 30, 2015 Fleet Information Services Technology Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $ 4,775,621 $ 1,470,294 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense 6,703,272 1,519,375 (Increase) decrease in accounts receivable - - (Increase) decrease in intergovernmental receivable 33,593 (87,303) (Increase) decrease in inventories 131,575 - (Increase) decrease in prepaid items - - (Increase) decrease in OPEB assets held in trust - - (Increase) decrease in Deferred outflows for pensions (70,268) (216,889) Increase (decrease) in vouchers payable (255,821) (171,525) Increase (decrease) in wages and benefits payable 12,466 35,888 Increase (decrease) in contract and retainage payable 305, ,796 Increase (decrease) in claims payable - - Increase (decrease) in intergovernmental payable 1,649 44,840 Increase (decrease) in Net pension liability 297, ,011 Increase (decrease) in compensated absences (4,502) (27,046) Increase (decrease) in Deferred inflows (372,196) (1,004,841) Total adjustments 6,782,312 1,318,306 Net cash provided by (used for) operating activities $ 11,557,933 $ 2,788,600 Non-cash investing, capital and financing activities Change in fair value of investments $ 92,234 $ 55,

215 Field and Risk Medical Workers' General Management Benefits Compensation Public Works Services Total $ (79,027) $ 797,849 $ (430,340) $ 218,247 $ (53,119) $ 6,699,525 1,097 10,071 1,631 4,365 29,785 8,269,596 13,546 (37,834) (24,288) - 40,641 31, , (89,192) 42,383 93, ,749 - (430,000) (430,000) (13,683) (24,305) (8,014) (169,411) (13,653) (516,223) (154,226) (485,963) (21,427) 9,255 (30,102) (1,109,809) 2,134 4,236 1,155 15,980 1,168 73,027 (6,188) 2,456 - (5,821) (12,158) 558,278 42, , ,603-8, ,218 62, ,112 35, ,362 63,565 2,243,860 (2,840) (1,786) (972) (99,995) 1,526 (135,615) (50,499) (92,965) (35,596) (873,570) (47,241) (2,476,908) (11,499) (895,608) 589,562 (396,835) (96,302) 7,289,936 $ (90,526) $ (97,759) $ 159,222 $ (178,588) $ (149,421) $ 13,989,461 $ 16,101 $ 34,218 $ 64,238 $ 2,784 $ 4,626 $ 269,

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217 Fiduciary Funds Fiduciary funds are used to report assets held in a trustee or agency capacity for others and which therefore cannot be used to support the government s own programs. BOCC Agency To account for all assets held by the Board of County Commissioners as an agent for individuals, organizations, or other governments. These funds are: Abandoned Property, Cash Performance and Bid Bonds, and Subdivision Improvement Bonds. Clerk s Agency To account for all assets held by the Clerk of Circuit Court as an agent for individuals, organizations, or other governments. These funds are: Fines and Forfeitures, Tax Deeds Application, Support, Clerk s Fees, Documentary Stamps, Court Registry, D.O.T. Registry, B.C.C. Registry, Restitution, Cash Bonds, County Court Trust, Circuit Court Trust, County Witness, and State Jury Witness. Sheriff s Agency To account for all assets held by the Sheriff as an agent for individuals, organizations, or other governments. These funds are: Cash Bond, Individual Depositors, Suspense and Prisoner. Tax Collector s Agency To account for all assets held by the Tax Collector as an agent for individuals, organizations, or other governments. These funds are: Distribution and State Agency. 215

218 Combining Statement of Fiduciary Net Position Agency Funds September 30, 2015 BOCC Clerk's Sheriff's Agency Agency Agency ASSETS Cash and investments $ 806,321 $ 15,838,826 $ 337,185 Accounts receivable - other - 3,324 1,323,269 Intergovernmental receivable Total assets $ 806,321 $ 15,842,150 $ 1,660,958 LIABILITIES Accounts payable $ - $ 510 $ 38,121 Due to other individuals 806,321-1,622,837 Intergovernmental payable - 2,771,204 - Interest payable - 7,658 - Deposits - 13,062,778 - Total liabilities $ 806,321 $ 15,842,150 $ 1,660,

219 Tax Collector's Agency Total $ 9,706,412 $ 26,688,744 15,833 1,342, $ 9,722,245 $ 28,031,674 $ - $ 38, ,432 2,736,590 9,414,813 12,186,017-7,658-13,062,778 $ 9,722,245 $ 28,031,

220 Combining Statement of Changes in Fiduciary Net Position Agency Funds For the Year Ended September 30, 2015 October 1, September 30, Balance Additions Deductions Balance BOCC Agency Funds ASSETS Cash and investments $ 865,375 $ 104,092 $ 163,146 $ 806,321 Total assets $ 865,375 $ 104,092 $ 163,146 $ 806,321 LIABILITIES Due to individuals $ 865,375 $ 104,092 $ 163,146 $ 806,321 Total liabilities $ 865,375 $ 104,092 $ 163,146 $ 806,321 Clerk's Agency Funds ASSETS Cash and investments $ 17,156,404 $ 1,187,789,212 $ 1,189,106,790 $ 15,838,826 Accounts receivable - other 1,138 2,186-3,324 Intergovernmental receivable 23,934 8,287 32,221 - Total assets $ 17,181,476 $ 1,187,799,685 $ 1,189,139,011 $ 15,842,150 LIABILITIES Accounts payable $ 100 $ 1,038,985,336 $ 1,038,984,926 $ 510 Due to individuals Intergovernmental payable 2,562,647 80,389,589 80,181,032 2,771,204 Interest payable 7, ,658 Deposits 14,611,027 68,424,388 69,972,637 13,062,778 Total liabilities $ 17,181,476 $ 1,187,799,685 $ 1,189,139,011 $ 15,842,150 Sheriff's Agency Funds ASSETS Cash and investments $ 448,835 $ 2,869,736 $ 2,981,386 $ 337,185 Accounts receivable - other 1,200, ,133-1,323,269 Intergovernmental receivable Total assets $ 1,648,971 $ 2,993,373 $ 2,981,386 $ 1,660,958 LIABILITIES Accounts payable $ 162,327 $ 1,615,015 $ 1,739,221 $ 38,121 Due to individuals 1,485, , ,216 1,622,837 Intergovernmental payable 1,005 3,481,066 3,482,071 - Total liabilities $ 1,648,971 $ 5,907,495 $ 5,895,508 $ 1,660,

221 Combining Statement of Changes in Fiduciary Net Position Agency Funds For the Year Ended September 30, 2015 October 1, September 30, Balance Additions Deductions Balance Tax Collector's Agency Funds ASSETS Cash and investments $ 9,784,888 $ 840,617,431 $ 840,695,907 $ 9,706,412 Accounts receivable - other 16,703 4,270,106 4,270,976 15,833 Total assets $ 9,801,591 $ 844,887,537 $ 844,966,883 $ 9,722,245 LIABILITIES Due to individuals $ 427,721 $ 19,222,092 $ 19,342,381 $ 307,432 Intergovernmental payable 9,373, ,124, ,083,421 9,414,813 Total liabilities $ 9,801,591 $ 836,346,456 $ 836,425,802 $ 9,722,245 TOTAL AGENCY FUNDS ASSETS Cash and investments $ 28,255,502 $ 2,031,380,471 $ 2,032,947,229 $ 26,688,744 Accounts receivable - other 1,217,977 4,395,425 4,270,976 1,342,426 Intergovernmental receivable 23,934 8,791 32, Total assets $ 29,497,413 $ 2,035,784,687 $ 2,037,250,426 $ 28,031,674 LIABILITIES Accounts payable $ 162,427 $ 1,040,600,351 $ 1,040,724,147 $ 38,631 Due to individuals 2,778,766 20,137,598 20,179,774 2,736,590 Intergovernmental payable 11,937, ,995, ,746,524 12,186,017 Interest payable 7, ,658 Deposits 14,611,027 68,424,388 69,972,637 13,062,778 Total liabilities $ 29,497,413 $ 2,030,157,728 $ 2,031,623,467 $ 28,031,

222 Balance Sheet Englewood Community Redevelopment Agency September 30, 2015 ASSETS Cash and investments $ 1,960,909 Interest receivable 3,941 Total assets $ 1,964,850 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 9,800 Wages and benefits payable 2,699 Total liabilities 12,499 Fund balance: Restricted 1,952,351 Total fund balance 1,952,351 Total liabilities and fund balance $ 1,964,

223 Statement of Revenues, Expenditures and Changes in Fund Balance Englewood Community Redevelopment Agency For the Year Ended September 30, 2015 REVENUES Taxes $ 1,205,918 Interest income 36,586 Net inc (dec) in fair value of investments 6,146 Miscellaneous 4,819 Total revenues 1,253,469 EXPENDITURES Current: Economic environment 485,324 Total expenditures 485,324 Excess (deficiency) of revenues over (under) expenditures 768,145 OTHER FINANCING SOURCES (USES) Transfers out (465,509) Total other financing sources and (uses) (465,509) Net change in fund balance 302,636 Fund balance - beginning 1,649,715 Fund balance - ending $ 1,952,

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225 Englewood Community Redevelopment Agency Notes to Financial Statements September 30, 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Englewood Community Redevelopment Agency (the Agency) have been prepared in conformity with accounting principles generally accepted in the United States (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of the Agency s accounting policies are described below. A. REPORTING ENTITY The Englewood Community Redevelopment Agency is a dependent special district of Sarasota County, Florida (the County). The Agency was established on March 31, 1998 in accordance with Chapter 163, Part III of the Florida Statutes. The Agency is a legally separate entity established by County Ordinance The purpose of the Authority is to coordinate projects and programs to improve the economic viability of the community of Englewood. The Agency is governed by the Sarasota County Board of County Commissioners. The financial statements of the County include all governmental functions and operations controlled by or dependent on the County. Accordingly, the financial statements include the Englewood Community Redevelopment Agency. B. BASIS OF PRESENTATION The Agency s financial statements consist of the fund financial statements and notes to the financial statements. Fund Financial Statements The accounts of the Agency are organized on the basis of funds, each of which is considered a separate accounting entity. Fund structures, where applicable, have been designed to comply with all requirements of the bond resolutions and regulatory provisions or administrative action. The operations of each fund are accounted for with a separate set of self-balancing accounts comprised of its assets, liabilities, equities, revenues and expenditures, or expenses, as appropriate. The only fund for the Agency is a governmental fund. Governmental Funds Governmental Funds focus primarily on the sources, uses, and balances of current financial resources. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting refers to when revenues and expenditures, or expenses, are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements not the measurement focus applied. The Agency s financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and 223

226 Englewood Community Redevelopment Agency Notes to Financial Statements September 30, 2015 decreases (i.e., expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Primary revenue sources which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain other revenues such as taxes and other intergovernmental revenues. Revenues not considered available are recorded as unearned revenues. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. Typical exceptions include principal and interest on general long-term debt which is recognized when due and certain portions of compensated absences. D. CASH AND INVESTMENTS The Agency uses a pooled cash concept in maintaining its bank account. Cash is pooled with the County for operating and investing purposes and each fund has equity in the pooled amount. E. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally equivalent to the receivables that are over 90 days past due. F. INTERFUND BALANCES Activity between the Agency and other funds that are representative of lending / borrowing arrangements outstanding at the end of the fiscal year are referred to as advances to / from other funds. G. ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. H. TAX INCREMENT REVENUE Tax increment revenues are collected from the County and are the primary source of revenue for the Agency. The tax increment revenue is calculated by applying the adopted millage rate of the County to the increase in current year taxable assessed valuations over the 1999 base year taxable assessed valuations for all properties located within the Agency s boundaries. The County is required to pay 95% of these incremental property taxes to the Authority. The increase in assessed valuations of property within the boundaries over the base year valuations is presumed to be the result of the redevelopment efforts of the Agency. The calculation of tax increment revenues for the year ended September 30, 2015 was as follows: 224

227 Englewood Community Redevelopment Agency Notes to Financial Statements September 30, 2015 Assessed property value for 2015 $ 952,912,329 Assessed property value for the 1999 base year 538,174,830 Increase in assessed property value $ 414,737,499 Assessed property value subject to incremental ad valorem property tax (95%) $ 394,000,624 Millage rate Tax increment revenue transferred to Agency $ 1,205,918 NOTE 2. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS The following is a schedule of interfund receivables and payables as of September 30, A. INTERFUND TRANSFERS Transfer from Englewood Community Redevelopment Agency fund to: Sarasota County Nonmajor Governmental Funds $ 465,509 Total transfers out $ 465,509 Transfers out reflect payment for West Dearborn Project and note payments to the County. 225

228 Other Supplementary Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill For the Fiscal Year Ended September 30, 2015 Amount Amount Received Expended in the in the Source Fiscal Year Fiscal Year BP Corporation North America Inc. BP Settlement $ 11,405,582 $ - $ 11,405,582 $ - Note: This does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance includes $ - of expenditures of Federal awards, and $ - of expenditures of State financial assistance, that are related to the Deepwater Horizon Oil Spill. 226

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231 229 statistical section

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233 Statistical Section (unaudited) The statistical data presents physical, economic, social, and political characteristics of Sarasota County. It is intended to provide users with a more broad and complete understanding of the County and its financial affairs than is possible from the financial statements and supporting schedules included in the financial section. Contents Pages Financial Trends These schedules contain trend information to help the reader understand how the County s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the County s most significant local revenue source, property taxes. Debt Capacity These schedules present information to help the reader assess the affordability of the County s current levels of outstanding debt and the County s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the County s financial activities take place and to help make comparisons over time and with other governments. Operating Information These schedules contain information about the County s operations and resources to help the reader understand how the County s financial information relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 231

234 Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year GOVERNMENTAL ACTIVITIES Net investment in capital assets $ 969,122,053 $ 1,012,124,912 $ 1,031,950,720 $ 1,077,473,326 Restricted for capital projects 138,569, ,949, ,138, ,269,202 Restricted for special revenues 132,944, ,925, ,096, ,357,457 Restricted for enabling legislation Restricted for special revenues-other Restricted for debt service Restricted for other purposes nonexpendable 2,627, , ,202 1,481,324 Restricted for other purposes 798,436 1,744,985 25,045,003 22,598,699 Unrestricted 63,641, ,425,049 87,608, ,402,071 Subtotal governmental activities net position 1,307,703,900 1,411,993,556 1,459,662,872 1,527,582,079 BUSINESS-TYPE ACTIVITIES Net investment in capital assets 331,186, ,713, ,406, ,551,758 Restricted for capital projects 36,752,422 36,856,172 37,182,870 37,969,092 Restricted for renewal and replacement 2,500,000 2,500,000 2,500,000 2,500,000 Restricted for other purposes nonexpendable 7,551, Restricted for other purposes - 8,796,700 7,858,242 6,939,069 Unrestricted 195,547, ,235, ,945, ,584,877 Subtotal business-type activities net position 573,537, ,101, ,893, ,544,796 PRIMARY GOVERNMENT Net investment in capital assets 1,300,308,541 1,396,838,827 1,457,357,227 1,547,025,084 Restricted for capital projects 175,322, ,805, ,321, ,238,294 Restricted for special revenues 132,944, ,925, ,096, ,357,457 Restricted for enabling legislation Restricted for special revenues-other Restricted for debt service Restricted for renewal and replacement 2,500,000 2,500,000 2,500,000 2,500,000 Restricted for other purposes nonexpendable 10,178, , ,202 1,481,324 Restricted for other purposes 798,436 10,541,685 32,903,245 29,537,768 Unrestricted 259,188, ,660, ,554, ,986,948 Total primary government net position $ 1,881,241,822 $ 2,038,095,524 $ 2,112,556,371 $ 2,205,126,

235 Fiscal Year $ 1,115,786,647 $ 1,128,703,347 $ 1,103,461,775 $ 1,108,355,534 $ 1,094,503,212 $ 1,113,722, ,739, ,891, ,117, ,671, ,476, ,866, ,529, ,948, ,920, ,614, ,151, ,503, ,638,697 23,670,888 28,731,928 30,591,124-15,596,315 17,267,612 15,657,473 16,022,656 13,163,789 1,483,022 1,461,198 1,492,710 1,492,710 1,492,710 1,492,710 22,533,269 9,474,348 8,181,431 8,349,505 8,522,210 8,906, ,931, ,922, ,162, ,246, ,559,940 (79,792,637) 1,551,002,625 1,563,998,128 1,560,242,970 1,552,058,379 1,521,461,027 1,351,453, ,443, ,998, ,552, ,816, ,775, ,753,902 33,214,359 26,162,299 25,863,094 22,034,528 22,339,623 23,576,039 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500, ,069,666 7,231,305 8,087,777 6,607,380 6,637,643 5,097, ,665, ,638, ,222, ,243, ,104, ,349, ,892, ,530, ,225, ,201, ,357, ,277,238 1,612,229,876 1,637,701,943 1,627,013,983 1,633,172,339 1,644,278,887 1,669,476, ,953, ,053, ,980, ,706, ,816, ,442, ,529, ,948, ,920, ,614, ,151, ,503, ,638,697 23,670,888 28,731,928 30,591,124-15,596,315 17,267,612 15,657,473 16,022,656 13,163,789 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 1,483,022 1,461,198 1,492,710 1,492,710 1,492,710 1,492,710 27,602,935 16,705,653 16,269,208 14,956,885 15,159,853 14,004, ,596, ,561, ,384, ,489, ,664, ,556,853 $ 2,262,894,901 $ 2,319,528,814 $ 2,346,468,595 $ 2,365,260,173 $ 2,381,818,672 $ 2,232,730,

236 Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year EXPENSES Governmental activities: General government $ 123,155,294 $ 92,555,043 $ 91,696,129 $ 90,229,897 Public safety 155,649, ,307, ,379, ,887,620 Physical environment 9,245,588 20,268,442 10,368,420 7,072,191 Transportation 47,493,320 54,476,729 55,204,297 50,606,410 Economic environment 8,858,780 12,151,138 12,932,417 14,000,972 Human services 20,028,556 22,296,126 22,582,420 21,171,736 Culture and recreation 35,179,316 44,687,945 37,834,905 37,761,736 Securities lending 10,306, Interest on long term debt 8,351,087 37,781,245 25,696,544 17,161,677 Subtotal governmental activities expenses 418,268, ,524, ,694, ,892,239 Business-type activities: Utility system 82,765,558 88,688,464 83,462,604 84,282,311 Solid waste system 37,060,631 36,561,031 40,412,184 36,127,799 Stormwater utility 16,511,231 18,454,356 17,552,260 16,886,344 Transportation authority 13,994,820 19,548,400 22,068,942 20,357,551 Subtotal business-type activities expenses 150,332, ,252, ,495, ,654,005 Total primary government expenses 568,600, ,776, ,190, ,546,244 PROGRAM REVENUES Governmental activities: Charges for services: General government 33,003,837 31,876,364 31,181,505 27,243,698 Public safety 54,607,239 51,381,483 53,173,974 51,409,705 Physical environment 1,134, , ,507 1,100,716 Transportation 1,892,703 1,860,615 2,104,110 2,594,128 Economic environment 746, , , ,107 Human services 29,139 40,308 29,531 23,540 Culture and recreation 1,865,656 2,085,219 2,464,554 2,850,619 Securities lending 10,410, Operating grants and contributions 18,196,200 19,155,782 19,835,721 20,092,632 Capital grants and contributions 26,999,591 42,409,427 24,171,400 21,382,065 Subtotal governmental activities program revenues 148,885, ,451, ,552, ,396,210 Business-type activities: Utility system 104,227, ,721,035 95,220,299 90,461,591 Solid waste system 42,581,402 41,565,682 40,085,143 37,517,602 Stormwater utility 24,204,032 22,246,322 22,889,248 24,226,269 Transportation authority 4,976,395 10,992,648 5,570,708 7,308,481 Subtotal business-type activities program revenues 175,989, ,525, ,765, ,513,943 Total primary government program revenues $ 324,875,072 $ 333,976,965 $ 298,318,374 $ 286,910,

237 Fiscal Year $ 89,406,288 $ 89,547,360 $ 84,445,345 $ 85,910,138 $ 89,156,972 $ 94,481, ,805, ,804, ,014, ,877, ,529, ,216,146 2,480,007 9,776,209 8,594,232 6,733,352 10,094,024 6,786,007 53,348,425 49,730,246 60,468,299 66,893,937 62,760,457 59,349,710 20,124,882 15,088,864 13,398,924 10,613,261 12,669,608 10,139,968 20,748,537 21,029,463 19,363,446 20,783,498 21,205,424 22,044,286 38,916,620 38,164,227 37,345,820 39,514,731 42,973,091 45,042, ,616,461 15,698,790 15,290,504 16,119,746 16,617,172 12,524, ,447, ,840, ,921, ,446, ,006, ,583,965 83,849,411 83,159,652 80,010,918 84,261,179 88,499,738 91,947,093 32,599,443 34,564,915 34,377,415 36,236,022 37,692,149 38,577,581 16,622,935 15,540,449 13,997,686 15,859,348 16,224,373 17,705,874 21,064,871 21,384,422 23,415,935 24,624,388 26,594,218 25,808, ,136, ,649, ,801, ,980, ,010, ,039, ,583, ,489, ,723, ,427, ,017, ,622,968 22,304,414 24,870,669 24,899,972 27,495,174 31,134,981 31,777,219 52,101,814 54,635,987 55,126,036 57,891,371 60,703,473 63,147,556 1,239,510 1,118,489 1,412,533 1,503,968 1,621,031 1,718,336 1,483, ,884 1,169, ,288 1,853,622 1,540, , , , , , ,457 19,351 28,621 34,667 21,566 13,488 18,090 2,323,784 2,440,109 2,446,914 2,599,745 3,294,669 2,842, ,039,970 26,915,291 24,826,624 22,901,344 16,731,809 13,268,226 25,622,915 32,411,570 24,238,820 26,219,273 27,861,441 22,997, ,840, ,984, ,737, ,272, ,839, ,926,151 95,697,824 97,786, ,140, ,817, ,098, ,719,895 38,459,433 38,078,788 38,217,324 38,729,826 39,107,409 40,342,438 24,262,241 21,295,350 16,849,370 18,250,445 18,163,327 18,214,956 8,580,452 14,070,953 7,448,331 6,704,588 11,187,003 6,835, ,999, ,231, ,655, ,502, ,556, ,112,466 $ 305,840,332 $ 315,216,402 $ 297,393,173 $ 306,775,203 $ 328,395,754 $ 323,038,

238 Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year NET (EXPENSE)/REVENUE Governmental activities: General government $ (88,304,841) $ (59,047,987) $ (59,029,674) $ (59,957,628) Public safety (96,639,974) (114,490,190) (117,454,905) (117,692,451) Physical environment (3,062,059) (13,712,897) (6,901,756) (4,398,343) Transportation (20,825,236) (19,118,779) (27,576,068) (26,008,018) Economic environment (4,015,487) (6,069,036) (6,908,784) (7,756,745) Human services (19,402,960) (20,507,925) (20,304,683) (19,165,271) Culture and recreation (28,884,489) (34,345,048) (33,269,386) (31,355,896) Securities lending 103, Interest on long term debt (8,351,087) (37,781,245) (25,696,544) (17,161,677) Subtotal governmental activities net expense (269,382,910) (305,073,107) (297,141,800) (283,496,029) Business-type activities: Utility system 21,462,264 20,032,571 11,757,695 6,179,280 Solid waste system 5,520,771 5,004,651 (327,041) 1,389,803 Stormwater utility 7,692,801 3,791,966 5,336,988 7,339,925 Transportation authority (9,018,425) (8,555,752) (16,498,234) (13,049,070) Subtotal business-type activities net expense 25,657,411 20,273, ,408 1,859,938 Total primary government net expense (243,725,499) (284,799,671) (296,872,392) (281,636,091) GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental activities: Ad valorem taxes 209,741, ,906, ,505, ,025,732 Motor fuel 14,001,060 13,799,215 12,134,869 11,737,996 Tourist tax 7,438,256 8,513,024 10,500,788 9,574,948 Franchise tax 16,743,975 17,752,108 18,273,962 18,629,619 Local communications services tax 10,356,650 11,352,852 11,144,933 11,160,766 Local government sales tax 64,787,245 59,267,235 52,582,735 46,237,599 State revenue sharing 9,476,029 9,180,257 8,457,560 7,453,687 Other state shared revenue 690, ,290 3,506,565 2,777,527 Unrestricted investment earnings 20,696,382 34,157,265 29,570,298 42,115,738 Decrease in fair value-securities lending - - (47,417,581) - Securities lending income - 28,608,910 16,617,268 2,074,077 Miscellaneous 3,974,904 6,442,635 6,356,096 8,243,535 Special items 64,994, Transfer to State of Florida (1,106,569) (1,089,274) - - Transfers (12,614,697) (17,303,603) (13,421,946) (10,615,988) Subtotal governmental activities 409,180, ,275, ,811, ,415,236 Business-type activities: Unrestricted investment earnings 9,231,262 13,273,317 10,730,024 10,844,480 Miscellaneous 1,330,908 1,713,690 2,370,153 1,330,891 Transfers 12,614,697 17,303,603 13,421,946 10,615,988 Subtotal business-type activities 23,176,867 32,290,610 26,522,123 22,791,359 Total primary government 432,357, ,565, ,333, ,206,595 Increase (Decrease) in Net Position Governmental activities 139,797, ,202,107 47,669,316 67,919,207 Business-type activities 48,834,278 52,564,046 26,791,531 24,651,297 Total primary government $ 188,631,785 $ 161,766,153 $ 74,460,847 $ 92,570,

239 Fiscal Year $ (50,560,560) $ (53,355,874) $ (49,039,124) $ (47,590,125) $ (53,425,385) $ (61,153,987) (118,268,219) (112,464,059) (116,599,284) (115,003,809) (119,701,131) (115,124,553) 573,289 (4,763,558) (4,410,080) (3,469,062) (6,746,871) (3,014,857) (37,465,055) (29,222,033) (36,126,639) (51,888,992) (42,487,973) (38,143,455) (8,853,127) (11,193,526) (8,582,373) (7,752,255) (10,042,241) (7,601,383) (18,723,389) (19,413,764) (18,846,422) (20,580,844) (20,443,542) (21,824,018) (28,693,221) (20,076,966) (31,710,053) (22,645,587) (29,547,974) (37,107,182) (15,616,461) (15,365,483) (14,869,484) (15,242,712) (15,772,410) (11,688,379) (277,606,743) (265,855,263) (280,183,459) (284,173,386) (298,167,527) (295,657,814) 11,848,413 14,626,918 20,129,375 18,556,352 27,599,178 27,772,802 5,859,990 3,513,873 3,839,909 2,493,804 1,415,260 1,764,857 7,639,306 5,754,901 2,851,684 2,391,097 1,938, ,082 (12,484,419) (7,313,469) (15,967,604) (17,919,800) (15,407,215) (18,973,278) 12,863,290 16,582,223 10,853,364 5,521,453 15,546,177 11,073,463 (264,743,453) (249,273,040) (269,330,095) (278,651,933) (282,621,350) (284,584,351) 176,753, ,219, ,531, ,965, ,848, ,173,563 11,732,182 11,697,973 11,183,012 11,552,806 11,741,433 11,964,586 9,777,447 11,469,148 14,076,593 14,960,055 17,050,460 19,073,635 16,941,643 16,576,491 15,665,884 15,346,666 16,618,542 17,308,484 10,590,006 10,538,700 10,734,887 10,675,672 10,764,661 10,216,291 46,323,424 49,837,878 50,271,002 52,186,598 60,268,365 63,018,804 7,425,253 7,581,187 7,772,346 8,219,825 8,769,270 9,550,327 2,898,600 2,798,056 2,770,828 2,719,695 2,631,665 2,550,986 24,854,089 19,467,113 17,959,499 (1,469,198) 9,876,625 9,918, ,271 5,760 23, ,794,774 6,520,740 6,636,129 31,308,390 9,897,225 20,262, (15,243,600) (17,861,861) (11,196,862) (20,477,496) (36,896,787) (16,361,598) 301,027, ,850, ,428, ,988, ,570, ,676,098 6,251,019 5,584,404 6,517, ,733 4,535,680 4,788,014 1,892,910 2,898,676 2,126,773 2,601,881 2,484,409 2,315,949 15,243,600 17,861,861 11,196,862 20,477,496 36,896,787 16,361,598 23,387,529 26,344,941 19,841,575 23,814,110 43,916,876 23,465, ,414, ,195, ,269, ,802, ,487, ,141,659 23,420,546 12,995,503 (3,755,158) (8,184,591) (30,597,352) 19,018,284 36,250,819 42,927,164 30,694,939 29,335,563 59,463,053 34,539,024 $ 59,671,365 $ 55,922,667 $ 26,939,781 $ 21,150,972 $ 28,865,701 $ 53,557,

240 Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year GENERAL FUND Reserved for inventories $ - $ - $ - $ 66,282 Reserved for advance funds 1,450, , , ,000 Unreserved, designated for, reported in: Compensated absences 15,233,143 14,903,903 14,672,088 9,938,886 Financial reserves policy 64,481,757 81,546,541 79,618,314 83,654,427 Unreserved 3,734, , ,490 59,510,788 Nonspendable Restricted Committed Assigned Unassigned Subtotal general fund $ 84,899,602 $ 97,746,461 $ 95,021,892 $ 153,345,383 ALL OTHER GOVERNMENTAL FUNDS Reserved for encumbrances $ 64,079,431 $ 58,652,440 $ 32,385,659 $ 61,456,947 Reserved for inventories 830,584 1,014, , ,748 Reserved for advance funds Reserved for debt service - - 6,833,675 13,712,413 Reserved for endowments 795, , ,227 1,461,178 Unreserved, designated for, reported in: Compensated absences 7,715,623 7,407,288 7,048,998 3,970,204 Financial reserves policy 22,996,245 19,521,649 19,416,444 19,984,644 Unreserved, reported in: Special Revenue Funds 101,402, ,982, ,727, ,613,861 Debt Service Funds 2,627,458 1,744,985 12,211,328 2,290,286 Capital Projects Funds 160,709, ,947, ,505, ,254,326 Permanent Funds 2,701 6,931 6,975 20,146 Nonspendable Restricted Committed Assigned Unassigned Subtotal all other governmental funds $ 361,159,655 $ 352,093,961 $ 478,855,854 $ 483,552,753 Note: Fund balance classifications have been revised due to the implementation of GASB Statement 54 in fiscal year

241 Fiscal Year $ - $ - $ - $ - $ - $ - 64, ,740, ,689, ,469, , ,000 16,000 2,143, ,058, , ,020 52, ,851,201 48,787,612 41,427,721 43,685,294 44,977,192-42,789,894 41,504,828 54,776,316 44,898,299 44,726,187-55,172,440 48,751,643 29,467,388 17,833,726 18,768,314 $ 142,963,682 $ 148,920,134 $ 139,702,147 $ 125,867,445 $ 108,613,199 $ 108,471,693 $ 57,803,224 $ - $ - $ - $ - $ - 314, ,712, ,461, ,496, ,197, ,520, ,548, ,618, , ,754,455 1,831,620 1,808,191 1,785,362 1,771, ,206, ,161, ,517, ,553, ,797,302-44,407,381 46,615,291 44,716,952 41,659,069 37,846,804-48, , , ,028 63, (57,928) (124,301) (110,727) (110,727) $ 441,695,266 $ 395,416,668 $ 392,751,484 $ 377,100,804 $ 394,358,868 $ 371,368,

242 Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year REVENUES Taxes $ 293,020,176 $ 326,043,385 $ 298,982,315 $ 260,238,223 Permits, fees and special assessments (1) 9,333,414 6,564,791 24,667,293 65,016,536 Intergovernmental 62,647,353 72,275,886 63,299,828 52,753,836 Charges for services 55,860,843 54,832,228 54,043,743 56,323,525 Judgments, fines and forfeits (1) 4,129,599 4,936,655 4,271,051 3,276,091 Assessments 50,837,087 47,799,521 44,482,073 - Interest income 18,049,657 24,760,775 26,110,191 25,776,279 Net inc (dec) in fair value of investments 208,550 5,879,447 (47,161,966) 13,553,004 Securities lending income 10,410,048 28,608,910 16,617,268 2,074,077 Contributions and donations 1,750, ,685 1,022,842 3,857,195 Miscellaneous 4,968,930 5,529,366 6,079,223 12,953,421 Total revenues 511,216, ,078, ,413, ,822,187 EXPENDITURES Current: General government 128,701,660 90,302,317 84,883,041 88,838,320 Public safety 165,797, ,784, ,145, ,880,129 Physical environment 23,876,673 40,150,306 53,659,564 19,528,773 Transportation 101,600,177 99,876,055 75,554,646 53,669,859 Economic environment 8,949,098 12,263,269 13,014,732 13,830,386 Human services 20,664,630 22,520,698 22,586,952 21,416,734 Culture and recreation 61,049,677 54,158,643 52,598,334 48,964,425 Securities lending 10,306,824 28,208,096 15,759,518 1,572,279 Intergovernmental - - 1,381, ,433 Debt Service: Principal 27,677,718 38,529,235 46,649,413 62,156,026 Debt issuance costs 740,738-1,162, ,473 Interest and fiscal charges 8,189,763 9,739,976 9,389,523 15,604,388 Current refunding bond issuance to escrow Refunding other sources to escrow Arbitrage 1,330, , , ,684 Total expenditures 558,885, ,826, ,925, ,892,909 Excess (deficiency) of revenues over (under) expenditures (47,669,356) 3,251,996 (62,511,594) (16,070,722) Transfers in 140,116, ,827, ,599, ,491,460 Transfer to State of Florida (1,106,569) (1,089,274) - - Transfers out (151,698,302) (159,635,229) (183,002,707) (149,389,456) Discount of bond issuance (92,905) Premium on bond issuance 18,006-3,465,489 83,108 Commercial paper issuance 68,225,000 16,426,000 30,887,000 - Debt issuance 45,275, ,600,000 69,895,000 Note issuance ,011,000 Capital lease proceeds Advance refunding bond proceeds to escrow Total other financing sources (uses) 100,736, , ,548,920 79,091,112 SPECIAL ITEM Proceeds from sale of land 64,994, Net change in fund balances $ 118,061,442 $ 3,781,165 $ 124,037,326 $ 63,020,390 Debt service as a percentage of noncapital expenditures 8.4% 10.8% 13.1% 18.3% Note: (1) Due to changes in the 2009 State of Florida Uniform Accounting System Manual, special assessments are now reported with permits and fees. Judgments are reported with fines and forfeitures. 240

243 Fiscal Year $ 234,432,405 $ 221,587,891 $ 214,519,790 $ 216,189,183 $ 230,609,126 $ 243,077,886 63,259,021 62,746,864 62,929,775 66,328,862 78,015,346 73,342,974 68,156,065 66,086,895 70,251,481 69,237,766 62,187,707 64,809,643 50,320,358 57,703,947 57,259,956 60,879,094 65,002,178 66,786,279 2,072,477 2,262,668 1,826,808 2,500,102 4,291,027 3,706, ,567,152 14,658,363 12,150,976 9,282,797 8,281,596 7,848,734 3,668,816 3,345,348 4,343,964 (10,881,268) 522,151 1,086, ,271 5,760 23, ,846,990 16,572,022 3,193,385 1,054, , ,768 8,915,426 5,696,847 6,276,760 31,164,152 10,038,884 21,189, ,418, ,666, ,776, ,754, ,675, ,044,556 88,330,915 90,024,761 80,862,850 90,061,486 93,759,812 94,651, ,334, ,355, ,070, ,522, ,052, ,076,958 28,736,882 16,879,343 11,175,833 12,393,966 11,542,743 8,577,679 62,561,418 60,108,205 48,807,907 47,420,611 52,257,542 62,412,411 20,278,069 15,143,168 13,452,967 10,628,552 12,744,872 10,279,172 20,945,240 21,237,992 19,629,408 21,193,029 21,306,661 22,199,112 50,229,532 65,082,320 53,738,907 52,937,656 68,045,910 57,512, ,129 22,870 (4,810) , , , ,836 15,635-23,737,497 42,646,136 20,771,302 20,612,662 20,063,226 25,169, ,574 76, , ,813 15,337,366 16,195,246 15,234,980 14,538,314 14,736,925 11,495, ,642, , ,749 1,020,650-41, ,793, ,460, ,449, ,684, ,257, ,242,359 (45,374,998) (55,794,215) (21,672,644) (9,930,259) (37,582,306) (33,197,803) 80,104, ,810,073 88,411,344 87,486,287 84,699,254 98,231, (92,357,719) (128,796,773) (94,498,871) (107,041,410) (95,141,379) (113,025,375) (130,606) ,262,470-1,600,000 5,575,000-8,225,000 6,066,000-38,410, ,245,000 70,845,000 5,389,000 15,360,000 10,302,000-49,532, ,125, (28,911,231) - - (26,843,145) (165,438,141) (6,864,190) 15,472,069 9,789,473 (19,555,123) 37,586,124 10,065, $ (52,239,188) $ (40,322,146) $ (11,883,171) $ (29,485,382) $ 3,818 $ (23,131,846) 10.1% 14.4% 9.2% 9.0% 8.5% 8.8% 241

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245 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years September 30, 2015 (in thousands) Fiscal Year Real Property Assessed Value Personal Property Less: Tax- Exempt Property Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value 2006 $ 80,904,015 $ 2,325,824 $ 24,313,875 $ 58,915, $ 58,915, ,746,498 2,555,699 22,638,384 62,663, ,663, ,813,468 2,529,053 19,191,350 53,151, ,151, ,251,500 2,313,345 15,025,342 46,539, ,539, ,585,389 2,190,004 10,570,393 42,205, ,205, ,693,564 2,069,066 10,198,788 39,563, ,563, ,079,819 1,975,106 9,925,109 39,129, ,129, ,427,679 2,109,946 9,782,093 40,755, ,755, ,234,044 2,167,283 9,942,976 43,458, ,458, ,523,884 2,339,237 10,320,996 46,542, ,542,125 Note: The basis of assessed value required by the state is 100 percent of actual value. For each fiscal year ending September 30, property is valued as of the preceding January 1st. Source: Sarasota County Property Appraiser 243

246 Direct and Overlapping Property Tax Rates Last Ten Fiscal Years September 30, 2015 (Per $1,000 of Assessed Value) Direct Rates Fiscal Year General Government Debt Service Other Total Direct Rate (1) Additional millages for incorporated areas include levies for operating and debt service costs. (2) Inland/Beach side Source: Sarasota County Tax Collector 244

247 Sarasota County School Board City of Sarasota (1) Overlapping Rates Town of Longboat Key (1) (2) City of Venice (1) City of North Port (1) Special Districts / / / / / / / / / /

248 Principal Property Taxpayers Current Year and Nine Years Ago September 30, Percentage Percentage Of Total Of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Valuation Rank Value Valuation Rank Value 2006 Florida Power & Light Co. $ 400,485, % $ 322,214, % TB Mall at UTC LLC 187,818, Verizon Florida LLC 106,330, ,888, Sarasota Shoppingtown LLC * 93,704, ,648, Publix Super Markets Inc 86,270, The Glenridge on Palmer Ranch 82,103, ,938, Wal-Mart Stores/Sam's East Inc. 75,260, Sarasota Doctors Hospital, Inc. 70,735, ,339, Venice HMA 68,656, ,280, SNF Property LLC 55,483, Slab/Ritz Carlton Hotel Co ,451, WCI Communities, Inc ,857, Osprey S.A ,619, MHC - Mobile Home Communities ,226, Total $ 1,226,848, % $ 1,334,465, % Total Assessed Value: $ 46,542,124,786 $ 58,915,964,438 * In 2005 Sarasota Shoppingtown and Southgate were combined as one amount but are being reported separately now. Source: Sarasota County Property Appraiser 246

249 Property Tax Levies and Collections Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Fiscal Year Estimated Population Total Tax Levy for Fiscal Year Total Tax Collected Percentage of Levy Total Tax Levy Cost Per Person ,906 $ 190,173 $ 183, % $ , , , , , , , , , , , , , , , , , , , , , , , , , , , Ad valorem taxes levied apply only to General, Special Revenue and Debt Service Funds. Property tax levies, based on assessed values as of January 1st, become due and payable on November 1st of each year. A 4 percent discount is allowed if the taxes are paid in November, with the discount declining by 1 percent each month thereafter. Accordingly, taxes collected will never be 100 percent of the tax levy. Taxes become delinquent on April 1st of each year and tax certificates for the full amount of any unpaid taxes and assessments must be sold no later than June 1st of each year. Collections received subsequent to the tax sales are remitted by the Tax Collector directly to the certificate holders. Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financial statements as there are no significant delinquent taxes as of September 30, Discount allowed: November - 4% December - 3% January - 2% February - 1% April - Taxes delinquent Source: Sarasota County Tax Collector 247

250 Property Value, Construction, and Bank Deposits Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Commercial Residential Real Property Value (1)(2) Construction(3) Construction(3) Fiscal Number Number Bank Year Commercial Residential Non-Taxable Total of Units Value of Units Value Deposits(4) 2006 $ 10,156,766 $ 64,042,550 $ 2,597,589 $ 76,796, $ 113,154 2,339 $ 456,908 $ 10,473, ,200,406 64,955,051 2,780,991 78,936, , ,682 9,544, ,822,534 55,136,337 2,785,003 67,743, , ,349 10,032, ,389,204 44,481,559 2,821,052 57,691, , ,239 12,463, ,337,910 39,662,158 2,694,979 51,695, , ,237 11,625, ,683,190 37,107,403 2,629,002 48,419, , ,097 11,192, ,905,875 36,784,898 2,460,982 48,151, , ,831 11,021, ,941,270 39,928,618 2,181,442 51,051, , ,273 11,672, ,727,572 44,289,251 2,237,902 56,254, ,787 1, ,022 11,770, ,710,178 48,085,831 2,709,358 61,505, ,327 1, ,663 12,531,364 (1) Amounts expressed as market (just) values. Amounts do not include vacant property except for agriculturally classified land. Sources: (2) Sarasota County Property Appraiser (3) Sarasota County Planning and Development Services (4) Federal Deposit Insurance Corporation-Information as of June 30,

251 Special Assessment Billings and Collections Last Ten Fiscal Years Special Special Fiscal Assessments Discounts Assessments Year Billed (1) Allowed Collected (2) 2006 $ 73,170,254 $ 2,485,055 $ 70,685, ,058,917 2,549,581 73,509, ,730,942 2,576,225 75,154, ,340,574 2,561,697 76,778, ,404,641 2,550,535 75,854, ,193,927 2,559,108 75,634, ,962,407 2,567,507 74,394, ,934,148 2,531,716 74,402, ,927,071 2,567,691 74,359, ,190,318 3,037,533 75,152,785 (1) Special assessments are assessments collected for taxing districts controlled by the Sarasota County Board of County Commissioners. (2) Special assessments become delinquent on April 1st of each year and tax certificates for the full amount of unpaid taxes are sold prior to June 1st of each year. Subsequent collections are remitted by the Tax Collector directly to the certificate holder. Accordingly, unpaid delinquent taxes are insignificant. Special assessments collected include proceeds from tax certificate sales on all delinquent real property. Source: Sarasota County Tax Collector 249

252 Coverage of Guaranteed Entitlement for All Counties by Revenue Sharing Trust Fund Receipts for All Counties State Fiscal Year Ended June 30 Last Five Years Cigarette Tax $ 7,007,507 $ 7,339,120 $ 7,227,691 $ 7,914,757 $ 6,965,007 Sales and Use Tax 326,683, ,142, ,948, ,978, ,741,263 Total Receipts $ 333,690,828 $ 349,481,907 $ 344,175,764 $ 376,893,210 $ 409,706,270 First Guaranteed Entitlement Revenues Second Guaranteed Entitlement Revenues 30,329,957 30,329,957 30,329,957 30,329,957 30,329,957 64,756,373 64,756,373 64,756,373 64,756,373 64,756,373 Coverage Source: Florida Department of Revenue 250

253 Coverage of Guaranteed Entitlement for Sarasota County by Revenue Sharing Trust Fund Receipts for Sarasota County County Fiscal Year Ended September 30 Last Five Years Total Receipts $ 7,581,187 $ 7,418,761 $ 8,219,825 $ 8,769,270 $ 9,550,327 First Guaranteed Entitlement Revenues Second Guaranteed Entitlement Revenues 1,119,924 1,119,924 1,119,924 1,119,924 1,119,924 1,148,225 1,148,225 1,148,225 1,148,225 1,148,225 Coverage Sources: Prepared by the County from audited financial statements (on accrual basis) Florida Department of Revenue 251

254 State of Florida and Sarasota County Historical Sales Tax Collections Last Ten Fiscal Years Fiscal Year Ended June 30 State of Florida % Change Sarasota County % Change 2006 $ 21,813,625, % $ 475,629, % ,750,646,000 (0.29) 454,872,742 (4.36) ,569,094,349 (5.43) 409,300,012 (10.02) ,368,889,417 (15.56) 334,872,529 (18.18) ,768,646,720 (3.46) 324,828,814 (3.00) ,575,218, ,854, ,487,483, ,716, ,350,631, ,674, ,097,421,293 (1.19) 406,049,765 (0.15) ,833,522, ,608, Source: Florida Department of Revenue 252

255 State of Florida and Sarasota County Historical Local Government Half-Cent Sales Tax Last Ten Fiscal Years Sarasota County Sarasota County Fiscal Year Distribution as a Percentage of Ended Total Statewide Sarasota County Percentage of Total Change in September 30 Distribution (1) Distribution (2) Distribution Distribution 2006 $ 1,765,817,242 $ 30,048, % 3.63 % ,699,014,883 27,509, (8.45) ,604,763,118 24,445, (11.14) ,443,436,346 21,026, (13.98) ,418,515,451 21,258, ,487,757,136 20,922, (1.58) ,539,744,819 22,765, ,727,747,858 24,692, ,575,950,744 26,589, ,822,667,419 28,891, (1) Based on distributions made on taxable sales for fiscal years ending September 30. (2) Based on actual receipts per County's audited financial records for fiscal years ending September 30. Timing variances may result due to different accounting methods. Source: Florida Department of Revenue 253

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257 Sarasota County and Municipalities Percent of Total Half-Cent Sales Tax Receipts* Last Ten Fiscal Years September 30, 2015 Fiscal Sarasota City of City of City of Town of Year County Sarasota Venice North Port Longboat Key % % 4.60 % 8.20 % 1.17 % *The percentages may not total 100% due to rounding. Sources: Florida Department of Revenue Local Government Financial Information Handbook 255

258 Ratios of Outstanding Debt by Type Last Ten Fiscal Years September 30, 2015 (dollars in thousands, except per capita) Governmental Activities (4) Fiscal Year General Obligation Bonds (1) Guaranteed Entitlement Revenue Bonds (1) Sales Tax Increment Bonds (1) Limited Ad Valorem Tax Bonds (1) Communication Services Tax Bonds (1) Five-Cent Local Option Gas Tax Bonds 2006 $ 1,685 $ 12,915 $ 13,285 $ 37,165 $ 45,285 $ 14, ,745 10,710 34,870 43,755 13, ,530 9, ,275 42,065 13, ,265 7, ,720 40,315 12, ,955 5, ,025 38,510 12, ,590 24,030 79,040 55,400 11, ,935 76,530 53,080 10, ,530 73,945 50,685 10, ,925 18,115 71,270 31, ,590 17,695 7,290 18,030 - Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) Totals consist of more than one issuance. (2) Percentage of Personal Income amount does not include the amounts for commercial paper. Personal Income data is not available for years 2014 and 2015, see the Demographic and Economic Statistics table on page 273 for personal income data. (3) Per Capita amount does not include the amounts for commercial paper. See the Demographic and Economic Statistics table on page 273 for population data. (4) The outstanding debt amounts do not include any bond discounts/premium which is included in the information provided in the notes to the financial statements. 256

259 Governmental Activities (4) Infrastructure Sales Surtax Revenue Bonds (1) Commercial Paper Capital Leases Notes Payable Total Governmental Debt $ - $ 105,021 $ 1,227 $ 1,035 $ 232,003-93, , ,901 73,995 85, , ,890 33,087 1,281 2, , ,805 26, , , ,475 7, , , ,875 7, , , ,980 6, , , ,790 13,747-63, ,806 94,015 18, , ,603. (Continued) 257

260 Ratios of Outstanding Debt by Type Last Ten Fiscal Years September 30, 2015 (dollars in thousands, except per capita) Business-Type Activities (4) Fiscal Year Utilities Revenue Bonds (1) Solid Waste Revenue Bonds Stormwater Utility Revenue Bonds Commercial Paper Notes Payable Total Business- Type Debt 2006 $ 185,115 $ 39,690 $ 24,805 $ 1,715 $ 73,728 $ 325, ,720 38,280 21,495 2,650 69, , ,605 36,825 18,145 5,960 77, , ,125 35,330 14,265 5,195 79, , ,895 33,775 5,060 22,320 75, , ,125 32,170 3,145 3,665 65, , ,800 30,510 1,515 2,079 99, , ,225 28,790-1,773 95, , ,665 25,765-1,057 90, , , , ,011 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) Totals consist of more than one issuance. (2) Percentage of Personal Income amount does not include the amounts for commercial paper. Personal Income data is not available for years 2014 and 2015, see the Demographic and Economic Statistics table on page 273 for personal income data. (3) Per Capita amount does not include the amounts for commercial paper. See the Demographic and Economic Statistics table on page 273 for population data. (4) The outstanding debt amounts do not include any bond discounts/premium which is included in the information provided in the notes to the financial statements. 258

261 Total Primary Government Percentage of Personal Income (2) Per Capita (3) $ 557, % $ , , , , , , , ,526 N/A ,614 N/A

262 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years September 30, 2015 (dollars in thousands, except per capita) Fiscal Year General Obligation Bonds Less: Amounts Restricted to Repay Principal Total Percentage of Estimated Actual Taxable Value (1) of Property Per Capita (2) 2006 $ 3,335 $ 1,650 $ 1, % ,685 1, Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) See the Assessed Value and Estimated Actual Value of Taxable Property table on page 243 for estimated actual taxable value data. (2) See the Demographic and Economic Statistics table on page 273 for population data. 260

263 Direct, Overlapping and Underlying Governmental Activities Debt September 30, 2015 (dollars in thousands) Estimated Percentage Applicable based on Population (1) Estimated Share of Overlapping Debt Debt Outstanding Direct debt (2) General Obligation Bonds $ - $ - Guaranteed Entitlement Revenue Bonds 16, % 16,590 Sales Tax Increment Bonds (3) 17, % 17,695 Limited Ad Valorem Tax Bonds (3) 7, % 7,290 Communication Services Tax Bonds (3) 18, % 18,030 Infrastructure Sales Surtax Revenue Bonds (3) 94, % 94,015 Commercial Paper 18, % 18,188 Notes Payable 155, % 155,795 Subtotal, direct debt 327, ,603 Overlapping debt None % - Underlying debt City of Sarasota (4) 64, % 8,712 City of Venice (5) 6, % 331 Town of Longboat Key (6) 1, % 12 City of North Port (7) 44, % 7,042 Subtotal, underlying debt 116,061 16,097 Total direct, overlapping and underlying debt $ 443,664 $ 343,700 Notes: (1) Population numbers obtained from the Bureau of Economic and Business Research. (2) The outstanding debt amounts do not include any bond discounts/premium. (3) Totals consist of more than one issuance. (4) Governmental activities debt outstanding amount obtained from the City of Sarasota. (5) Governmental activities debt outstanding amount obtained from the City of Venice. (6) Governmental activities debt outstanding amount obtained from the Town of Longboat Key. (7) Governmental activities debt outstanding amount obtained from the City of North Port. 261

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265 Legal Debt Margin Information September 30, 2015 Pursuant to the Florida Constitution and Florida Statute , there is no limit on the amount of ad valorem taxes Sarasota County may levy for the payment of voted bonds. Therefore, a schedule computing Legal Debt Margin is not included herein. 263

266 Pledged-Revenue Coverage Non-Self Supporting Revenue Debt Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Capital Improvement Refunding Revenue Bonds & 1st Guaranteed Entitlement Revenue Refunding Note(5) Second Guaranteed Entitlement Refunding Revenue Bonds and Second Guaranteed Entitlement Revenue Bonds(6) Debt Service Debt Service Fiscal Year First Guaranteed Entitlement Revenues Principal Interest Coverage Refunding Second Guaranteed Entitlement Revenues Principal Interest Coverage 2006 $ 1,120 $ 560 $ $ - $ 1,148 $ 565 $ , , , , , , , , , , , ,737 1, , , , , , , Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) Capital Improvement Revenue Bonds and Note are secured by a lien upon and an irrevocable pledge of all the monies received by the County from the Local Government Half-Cent Sales Tax distributed to the County pursuant to Chapter 218, Part VI Florida Statutes. (2) Sales Surtax Collections for the Infrastructure Sales Surtax Revenue Bonds began 9/1/09. Therefore, only 1 month of collections are represented for the 2009 fiscal year. Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 and 2015 were issued to advance refund the Infrastructure Sales Surtax Bonds, Series 2008B maturing on or after Oct. 1, 2018 and Series 2008A maturing on or after Oct. 1, 2019 respectively. (3) Limited Ad Valorem Bonds, Series 2008 maturing on or after Oct. 1, 2019 were advance refunded by the Limited Ad Valorem, Series 2014 Bank Term Loan. (4) Cash defeasance of $11,490,000 on the Limited Ad Valorem, Series 2008 bonds and a prepayment of $4,405,000 on the Limited Ad Valorem, Series 2010 bank term loan. (5) Capital Improvement Refunding Revenue Bonds, Series 2002 and Sales Tax Revenue Bonds, Series 2002 were refunded in fiscal year st Guaranteed Entitlement Revenue Refunding Note principal payments start in FY13. (6) Second Guaranteed Entitlement Refunding Revenue Bonds were refunded in fiscal year 2011, Second Guaranteed Entitlement Revenue Bonds were issued in FY14. (7) CST Revenue Refunding Bonds were issued in FY14 to advance refund the CST Revenue Bonds, 2005A and 2005B maturities beginning October 1, CST Revenue Refunding Note, Series 2015 were issued to advance refund the CST Revenue Bonds, Series 2006 maturing on or after Oct. 1, (8) Five-Cent Local Option Fuel Tax Revenue Refunding Bonds were issued in FY14 to advance refund the Five-Cent Local Option Fuel Tax Revenue Bonds maturing beginning October, 1,

267 Sales Tax Revenue Bonds(5), Capital Improvement Revenue Bonds, 2010 A & B(1) & Capital Improvement Revenue Refunding Note, 2012(1) Limited Ad Valorem Tax Environmentally Sensitive Lands(3) Debt Service Debt Service Sales Tax Increment Collections Principal Interest Coverage Refunding ESL Collections Principal Interest Coverage Cash Defeasements and Prepayments (4) $ 30,049 $ 2,470 $ $ - $ 7,986 $ - $ 1, $ - 27,509 2, ,236 2,295 1, ,445 1, ,120 3,200 3, ,026 1, ,882 3,555 5, ,258 1, ,252 3,695 5, , , ,379 4,025 4, ,895 22, , ,755 10,572 3,375 3, ,693 1,188 1, ,474 3,185 3, ,589 1,217 1, ,847 3,225 3, ,892 1,234 1, ,415 4,655 2, (Continued) 265

268 Pledged-Revenue Coverage Non-Self Supporting Revenue Debt Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Communication Services Tax (CST) Revenue Bonds and CST Revenue Refunding Bonds(7) Five-Cent Local Option Fuel Tax Revenue Bonds and Five- Cent Local Option Fuel Tax Revenue Refunding Bonds(8) Debt Service Debt Service Fiscal Year CST Collections Principal Interest Coverage Local Option Five Cent Gas Tax Collections Principal Interest Coverage 2006 $ 10,357 $ 985 $ 1, $ 5,114 $ 505 $ ,353 1,530 1, , ,145 1,690 1, , ,161 1,750 1, , ,590 1,805 1, , ,539 1,870 2, , ,735 2,320 2, , ,676 2,395 2, , ,765 2,470 2, , ,216 2,730 1, , Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) Capital Improvement Revenue Bonds and Note are secured by a lien upon and an irrevocable pledge of all the monies received by the County from the Local Government Half-Cent Sales Tax distributed to the County pursuant to Chapter 218, Part VI Florida Statutes. (2) Sales Surtax Collections for the Infrastructure Sales Surtax Revenue Bonds began 9/1/09. Therefore, only 1 month of collections are represented for the 2009 fiscal year. Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 and 2015 were issued to advance refund the Infrastructure Sales Surtax Bonds, Series 2008B maturing on or after Oct. 1, 2018 and Series 2008A maturing on or after Oct. 1, 2019 respectively. (3) Limited Ad Valorem Bonds, Series 2008 maturing on or after Oct. 1, 2019 were advance refunded by the Limited Ad Valorem, Series 2014 Bank Term Loan. (4) Cash defeasance of $11,490,000 on the Limited Ad Valorem, Series 2008 bonds and a prepayment of $4,405,000 on the Limited Ad Valorem, Series 2010 bank term loan. (5) Capital Improvement Refunding Revenue Bonds, Series 2002 and Sales Tax Revenue Bonds, Series 2002 were refunded in fiscal year st Guaranteed Entitlement Revenue Refunding Note principal payments start in FY13. (6) Second Guaranteed Entitlement Refunding Revenue Bonds were refunded in fiscal year 2011, Second Guaranteed Entitlement Revenue Bonds were issued in FY14. (7) CST Revenue Refunding Bonds were issued in FY14 to advance refund the CST Revenue Bonds, 2005A and 2005B maturities beginning October 1, CST Revenue Refunding Note, Series 2015 were issued to advance refund the CST Revenue Bonds, Series 2006 maturing on or after Oct. 1, (8) Five-Cent Local Option Fuel Tax Revenue Refunding Bonds were issued in FY14 to advance refund the Five-Cent Local Option Fuel Tax Revenue Bonds maturing beginning October, 1,

269 Infrastructure Sales Surtax Revenue Bonds and Infrastructure Sales Surtax Revenue Refunding Bonds(2) Debt Service Fiscal Year Infrastructure Sales Surtax Collections Principal Interest Coverage 2006 $ - $ - $ ,700-3, ,007 7,085 6, ,069 7,330 6, ,440 7,600 6, ,431 7,895 5, ,612 8,190 5, ,056 8,535 4,

270 Pledged-Revenue Coverage Self-Supporting Revenue Debt Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Utility System Revenue Bonds (2) Debt Service Fiscal Year Gross Revenues Less: Expenses Net Revenue Available Principal Interest Total Coverage Cash Defeasements (3) 2006 $ 81,930 $ 51,902 $ 30,028 $ 6,590 $ 9,399 $ 15, $ ,205 53,082 30,123 6,860 8,218 15, ,005 52,239 29,766 7,115 9,605 16, ,219 53,862 30,357 7,480 9,237 16, ,994 53,054 34,940 6,230 8,845 15, ,698 51,366 43,332 5,775 9,155 14, , ,093 50,610 45,483 5,995 9,718 15, ,560 53,490 42,070 7,535 9,493 17, ,534 56,709 45,825 8,275 9,446 17, ,350 10,673 18, ,145 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) The bond resolution for the Stormwater Special Assessment Revenue Bonds gives the County the option of an extraordinary redemption during the fiscal year. This option has been exercised each fiscal year since the bonds were issued. (2) Statistical presentation is not intended to reflect legal compliance. Therefore there may be a difference from the other supplemental schedules section. (3) Represents partial redemption of Utility Revenue Bonds, Series 2002A of $4,210,000 and partial redemption of Utility Revenue Bonds, Series 2002B of $3,440,000. Utility Revenue Refunding Note, Series 2015 fully refunded the Utility System Revenue Bonds, Series 2005A in FY15. (4) The bonded Phillippi Structure/Street basins are no longer assessing for repayment of the 1999 Stormwater Utility Revenue Bonds as pursuant to the bond covenants. The bonds are budgeted to be fully repaid in FY13 from current assessments on Elligraw, Clower and Matheny and previously collected assessments on Phillippi Structure/Street. There will be no assessments for any of the bonded basins after FY13 relative to the bonds. (5) Solid Waste Revenue Refunding Note, Series 2015 fully refunded the Solid Waste Revenue Bonds, Series

271 Solid Waste System Revenue Bonds Debt Service Gross Revenues Less: Net Revenue Expenses Available Principal Interest Total Coverage Refunding (5) $ 38,126 $ 26,074 $ 12,052 $ 1,345 $ 1,870 $ 3, $ - 39,932 25,185 14,747 1,410 1,806 3, ,736 24,914 13,822 1,455 1,763 3, ,690 28,805 6,885 1,495 1,716 3, ,065 27,080 7,985 1,555 1,660 3, ,479 24,581 10,898 1,605 1,605 3, ,530 24,534 8,996 1,660 1,553 3, ,849 26,121 8,728 1,720 1,495 3, ,222 26,405 9,817 3,025 1,411 4, ,071 1, ,765 (Continued) 269

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273 Pledged-Revenue Coverage Self-Supporting Revenue Debt Last Ten Fiscal Years September 30, 2015 (dollars in thousands) Stormwater Utility Revenue Bonds Debt Service Fiscal Year Special Assessment Collections Principal Interest Total Coverage Extraordinary and Ordinary Redemptions (1) 2006 $ 4,028 $ 1,455 $ 1,412 $ 2, $ 1, ,002 1,410 1,252 2, , ,975 1,350 1,092 2, , ,974 1, , , ,517 1, , , , , , (4) (4) Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. (1) The bond resolution for the Stormwater Special Assessment Revenue Bonds gives the County the option of an extraordinary redemption during the fiscal year. This option has been exercised each fiscal year since the bonds were issued. (2) Statistical presentation is not intended to reflect legal compliance. Therefore there may be a difference from the other supplemental schedules section. (3) Represents partial redemption of Utility Revenue Bonds, Series 2002A of $4,210,000 and partial redemption of Utility Revenue Bonds, Series 2002B of $3,440,000. Utility Revenue Refunding Note, Series 2015 fully refunded the Utility System Revenue Bonds, Series 2005A in FY15. (4) The bonded Phillippi Structure/Street basins are no longer assessing for repayment of the 1999 Stormwater Utility Revenue Bonds as pursuant to the bond covenants. The bonds are budgeted to be fully repaid in FY13 from current assessments on Elligraw, Clower and Matheny and previously collected assessments on Phillippi Structure/Street. There will be no assessments for any of the bonded basins after FY13 relative to the bonds. (5) Solid Waste Revenue Refunding Note, Series 2015 fully refunded the Solid Waste Revenue Bonds, Series

274 Coverage of Maximum Annual Debt Service Requirement By Local Government Half-Cent Sales Tax Revenues Fiscal Year Ending September 30, 2015 Local Government Half-Cent Sales Tax Revenues $ 28,891,874 Maximum Annual Debt Service Requirement 2,471,757 Debt Service Coverage Ratio

275 Demographic and Economic Statistics Last Ten Fiscal Years September 30, 2015 Calendar Year Population (1) Per Capita Personal Income (2) Personal Income (in thousands) Public School Enrollment (3) Unemployment Percentage Rate (4) ,906 $ 52,772 $ 19,995,627 41, % ,461 55,559 21,526,946 42, ,608 55,856 21,985,368 42, ,320 56,158 21,863,433 41, ,268 52,331 20,318,453 41, ,319 53,769 20,503,141 40, ,664 55,422 21,263,426 41, ,292 56,661 21,831,030 41, ,140 54,147 20,962,470 41, ,090 N/A N/A 41, N/A = Data not currently available Sources: (1) Bureau of Economic and Business Research (2) Florida Office of Economic & Demographic Research (3) School Board of Sarasota County (4) U.S. Bureau of Labor Statistics (12 month average) 273

276 Principal Employers Current Year and Nine Years Ago Employer Employees Rank Percentage of Total County Employment Employees Rank Percentage of Total County Employment School Board of Sarasota County 5, % 5, % Sarasota County Government 3, , Sarasota Memorial Hospital 3, , PGT Industries 1, , Publix Super Markets 1, , Venice Regional Medical Center 1, , FCCI Insurance Group Sun Hydraulics Corporation Goodwill Industries Sunset Automotive Group Wal-Mart , CEMEX, Inc , Nielsen Media Reseach Total 19, % 23, % Total Sarasota County Employment 168,673 * 180,855 * *Source: Florida Agency for Workforce Innovation, Labor Market Statistics 274

277 Top Ten Manufacturers (1) Current Year and Nine Years Ago Company Type of Business Total Employed Percentage of Total County Employment Total Employed Percentage of Total County Employment PGT Industries Window and Door Manufacturer 1, % 2, % Sun Hydraulics Corporation Hydraulic Cartridge Valves Tervis Tumbler Insulated Plastic Tumblers Hoveround Wheelchair Manufacturer ASO Corporation Bandages CAE Healthcare Patient Simulators Manufacturer L-3 Communications Aviation Recorders JeldWen Interior Door Manufacturer Harmar Manufacturer of Vehicle/Home Access. Prod KHS (Klockner-Bartelt, Inc.) Packaging Manufacturing Cemex, Inc. Concrete & concrete blocks - - 1, Forest Products Supply Millwork, Roofs & Trusses Kimal Lumber Co., Inc. Building materials, doors, trusses Pac-Tec Plastic injection molds & parts Teleflex, Inc. Marine components Honeywell Sensor manufacturing Total 4, % 5, % Total Sarasota County Employed (2) 168, ,855 Sources: (1) Economic Development Corporation of Sarasota County (2) U.S. Bureau of Labor Statistics 275

278 Miscellaneous Statistics September 30, 2015 County Government: Tourism: Date of incorporation 1921 Related business employment 22,500 * Form of government Commission/Administrator Number of: Area served 725 sq. miles Seasonal residents 117,627 Commissioners 5 Hotel and motel units 4,841 Length of term 4 years Hotel and motel gross revenue $ 381,472,694 Total direct tourism dollars $ 1,361,650,600 * Political Participation: Number of registered voters: Recreation and Culture: Last general election, 11/04/14 277,321 Number of: Ballots cast: Radio stations 16 Last general election, 11/04/14 163,427 Television stations 5 Percentage of voters: Locally published newspapers 4 Last general election, 11/04/ % Medical Services: Education: Number of: Total number of: Hospitals 6 Charter schools 11 Hospital beds 1,522 Elementary schools 23 Doctors Middle schools 7 Per 1000 population 3.23 K-8 schools 1 Dentists Senior high schools 6 Per 1000 population 0.85 Other types 6 Student Enrollment 41,910 Police Protection: Teachers 2,945 Number of police stations 8 Support staff & administrators 2,619 Number of employees 1,250 Average SAT score: Critical reading 537 Fire Protection: Math 533 Number of: Writing 512 Employees 784 Volunteers 74 Building: Estimated construction costs, Fiscal 2015 Transportation: Privately owned $ 623,620,201 Major airline carriers 4 Publicly owned $ 1,046,947 National bus lines 1 Housing: Number of: Condominium units 50,705 Spaces in mobile home parks 19,471 * Based on data for calendar year 2014 provided by The Sarasota County Tourist Development Council. 276

279 Full-time Equivalent County Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program General government Board of County Commissioners Clerk of the Circuit Court Property Appraiser Supervisor of Elections Tax Collector Other Public safety Fire-Rescue Sheriff 1,019 1,050 1, Other Physical environment Transportation Economic environment Human services Culture & recreation Parks & Recreation County Libraries Other Utility system Solid waste system Stormwater utility Transportation authority Total 3,821 3,976 3,812 3,633 3,502 3,457 3,430 3,470 3,585 3,643 Note: Number of positions based on budgeted Full-time Equivalents. Source: Office of Financial Planning Budget Document 277

280 Operating Indicators by Function/Program Last Ten Fiscal Years Function/Program General government Planning and development services Code Enforcement Violations 7,905 7,961 8,042 7,516 Building Plans Reviewed 14,415 13,148 7,018 8,277 Permits Issued 30,651 24,370 21,446 20,161 ROW/Culvert/Utilities Permits Issued Residential Certificates of Occupancy (CO's) 2,204 1, Public safety Fire-Rescue Response Time (minutes) Fire Responses 7,680 6,858 6,723 5,566 Medical Responses 39,684 36,983 37,719 38,442 Inspections 1,200 3,762 4,130 3,911 Sheriff (1) Arrests 12,652 11,574 11,244 10,696 Alarm Calls for Service 10,850 9,346 9,055 8,595 Traffic Citations 32,843 28,276 28,689 28,174 Physical environment Water Resource Management Tonnage of Artificial Reef Materials Natural Resources % of Wetland Impacts to Wetlands on Existing Development Projects Transportation Transportation Lane Miles of Road Maintained 2,248 2,261 2,292 2,308 Lane Miles of Road Resurfaced Linear Feet of Roadway Striped 212, , , ,905 Economic environment Tax Increment Financing Dollars for Englewood 2,001,665 2,809,631 2,623,564 1,938,169 Occupational Licenses Issued 35,473 35,558 32,711 30,129 Human services Public Health Services Funding for Human Services Programs (Millions) Infant Mortality Rate per 1,000 Population Veterans Served 7,327 6,930 6,885 7,500 Culture & recreation Parks & Recreation Recreation Program Participants 421, , , ,273 Beach Attendees 5,149,109 5,994,327 5,831,725 6,409,636 Libraries Total Circulation 3,008,660 2,950,134 2,700,812 3,304,245 Total Patron Count 2,617,671 3,040,392 2,571,328 2,701,937 Total Program Attendance 114, , , ,252 Enterprise funds Utility System (2) Water Accounts (average accounts served) 69,993 74,167 74,474 75,680 Total Sales (000's Gallons) 6,331,071 6,331,060 6,023,393 5,892,131 Water Produced (000's Gallons) 2,680,081 2,846,160 3,648,973 2,805,436 Water Purchased (000's Gallons) 4,530,135 4,354,502 4,191,358 3,880,757 Wastewater Accounts (average accounts served) 55,206 59,864 60,796 62,240 Total Billed Flows (000's Gallons) 3,712,292 4,147,909 4,023,623 3,995,366 Wastewater Treated County-Owned Facilities 3,247,243 3,464,181 3,688,743 3,555,094 Wastewater Treatment by Contract (000's Gallons) 301, , , ,519 Solid Waste Waste Processed (000's Lbs. per Day) 2,130 2,002 1,880 1,696 Recyclables Processed (000's Lbs. per Day) Stormwater Utility Number of ESU's (Equivalent Stormwater Units) 186, , , ,769 Sarasota County Transportation Authority Fixed Route, Passengers 1,883,113 2,157,843 2,306,494 2,551,650 Fixed Route, Total Miles 1,838,101 2,201,637 2,504,421 2,782,959 Demand Response, Passengers 201, , , ,227 Demand Response, Total Miles 1,670,507 1,605,056 1,417,533 2,035,357 N/A = Not available (1) The Sheriff's statistical information is on a calendar year basis through 2008 and a fiscal year basis starting in (2) Dolomite Utilities Corp. acquisition in December Fiscal Year Source: Office of Financial Planning 278

281 Fiscal Year ,468 8,663 6,666 6,377 6,052 5,632 9,160 8,914 9,952 12,191 15,921 17,774 23,597 23,266 22,052 24,874 27,945 30, ,126 1, ,520 5,297 5,281 5,568 5,129 4,693 41,449 41,672 43,542 45,668 46,925 54,144 3,471 3,745 3,360 3,066 3,107 3,350 8,673 9,081 8,874 8,294 9,974 9,173 8,638 8,525 8,844 9,072 9,015 9,747 31,820 31,652 33,497 32,740 36,107 35, ,317 2,328 2,332 2,334 2,346 2, ,055 46, ,221 72,045 30,225 32,430 1,475,373 1,184,443 1,006,009 1,097,041 1,070,819 1,205,918 27,661 28,999 29,739 30,366 31,220 30, ,758 7,520 7,413 7,733 8,496 9, , , , , , ,704 6,322,726 6,917,332 6,736,391 4,561,189 4,923,128 5,819,063 3,295,099 3,152,281 3,098,483 3,003,849 2,899,191 2,955,974 2,545,951 2,405,176 2,056,237 1,966,433 1,932,557 1,926, , , , , , ,282 75,448 75,898 76,024 77,483 82,241 84,690 5,705,878 5,946,725 5,934,277 5,885,314 5,898,390 5,926, , , , , , ,806 5,127,439 5,767,667 5,932,772 5,956,279 6,012,361 6,115,971 63,331 64,731 65,687 67,464 74,456 77,943 4,022,825 4,168,869 4,207,748 4,238,576 4,681,251 4,840,160 4,279,241 4,220,462 4,441,904 4,681,755 4,850,534 5,032, , , , , , ,988 1,596 1,692 1,677 1,701 1,730 1, , , , , , ,438 2,733,096 2,880,392 2,793,129 2,282,929 2,882,065 2,740,771 2,794,699 2,785,410 2,798,303 2,915,783 3,189,814 3,253, , , , , , ,685 1,242,710 1,134,621 1,224,982 1,303,378 1,443,218 1,472,

282 Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program General Government Square Footage of Building Space (in thousands) 2,427 2,803 2,737 2,675 Courtrooms Public safety Fire-Rescue Fire Stations Sheriff Marked Vehicles Physical Environment Natural Resources Acres of Private Land Protected through Regulation 267 1, Acres of Public Land Protected through Referenda ,571 5 Transportation County Roads (lane miles) 2,248 2,261 2,292 2,308 Traffic Signals Economic Environment Acres of Land Purchased Culture & Recreation Parks & Recreation Developed Acres 4,991 4,999 5,010 5,461 County-Owned Parks Recreation Centers Athletic Fields Playgrounds Beaches Libraries Libraries Enterprise funds Utility System Water Treatment Plants Fire Hydrants 5,111 5,393 5,588 5,625 Wastewater Treatment Plants Lift Stations Solid Waste System Number of Landfills Sarasota County Transportation Authority Fixed Route Buses Para-transit Buses Commuter Buses (1) Source: Office of Financial Planning (1) FY12 is the first year of full operation of the Commuter Bus service 280

283 Fiscal Year ,661 2,696 2,605 2,687 2,610 2, , ,317 2,328 2,332 2,334 2,346 2, ,517 5,521 5,523 5,531 5,531 5, ,039 6,250 6,321 6,523 6,798 6,

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285 OTHER SUPPLEMENTAL SCHEDULES SECTION 283

286 Summary Schedule of Revenues, Expenditures and Changes in Fund Balances-General Fund Last Five Fiscal Years Year Ending September 30, Revenues: Taxes $ 123,844,962 $ 120,676,493 $ 119,506,787 $ 123,953,382 $130,710,958 Permits, fees and special assessments 17,133,747 16,321,310 16,126,700 17,547,093 18,283,723 Intergovernmental 30,022,820 30,792,467 34,994,044 37,461,076 40,602,117 Charges for services 39,291,873 38,873,735 39,654,063 37,731,262 38,914,531 Judgments, fines and forfeits 469, , , , ,776 Interest income 4,457,479 3,901,302 2,532,803 1,846,370 1,740,093 Net increase (decrease) in fair value of investments 2,774,971 3,419,565 (3,256,560) 84, ,382 Securities lending income 5,760 23, Contributions and donations 31,074 1, ,198 - Miscellaneous 1,765,340 1,227,095 25,746,538 1,975,366 12,524,976 Total revenues 219,797, ,686, ,724, ,137, ,528,556 Expenditures: Current: General government 70,574,081 67,315,545 66,914,667 70,930,284 74,074,716 Public safety 94,983,874 95,929,025 95,815, ,090, ,268,256 Physical environment 3,860,282 3,694,519 3,889,909 3,697,934 2,828,916 Economic environment 534, , ,201 1,316,396 1,078,907 Human services 8,678,760 8,457,777 10,077,342 9,885,246 10,317,711 Culture and recreation 25,891,057 24,458,190 26,629,858 27,043,986 26,847,643 Securities lending 22,870 (4,810) Debt Service: Principal 31,136 34,302 37,662 41,226 45,005 Interest and fiscal charges 45,749 44,620 42,329 40,365 38,219 Total Expenditures 204,622, ,465, ,358, ,045, ,499,373 Excess of revenues over (under) expenditures 15,174,756 15,220,730 31,365,777 6,091,531 22,029,183 Other financing sources (uses): Operating transfers in 24,625,641 7,938,525 9,463,865 10,110,694 13,841,813 Operating transfers out (33,843,945) (32,377,242) (54,664,344) (33,456,471) (36,012,502) Total other financing sources (uses) (9,218,304) (24,438,717) (45,200,479) (23,345,777) (22,170,689) Net change in fund balance 5,956,452 (9,217,987) (13,834,702) (17,254,246) (141,506) Fund balances, October 1 142,963, ,920, ,702, ,867, ,613,199 Fund balances, September 30 $ 148,920,134 $ 139,702,147 $ 125,867,445 $ 108,613,199 $ 108,471,693 Source: Prepared by the County from audited financial statements (on a modified accrual basis) As of 2011 the Clerk's Recording and Other Non-Court Functions Fund did not meet the requirements of GASB 54 for classification as a special revenue fund. For reporting purposes the revenues and expenditures have been included in the County's General Fund. 284

287 Assessed Value of Taxable Property Last Ten Fiscal Years September 30, 2015 (in thousands) Fiscal Year Assessed Value Less:Governmental and Institutional Less: Homestead Exemption Less: Widow, Disability and Other Taxable Assessed Valuation 2006 $ 83,229,839 $ 5,213,510 $ 2,847,800 $ 16,252,565 $ 58,915, ,302,197 4,860,231 2,910,424 14,867,729 62,663, ,342,521 5,177,250 5,806,025 8,208,075 53,151, ,564,845 5,131,114 5,688,408 4,205,820 46,539, ,775,393 4,863,359 5,349, ,792 42,205, ,762,630 4,680,510 5,184, ,278 39,563, ,054,925 4,497,696 5,071, ,627 39,129, ,537,625 4,398,324 5,058, ,089 40,755, ,401,328 4,510,853 5,080, ,192 43,458, ,863,121 4,774,782 5,168, ,722 46,542,125 Note: The basis of assessed value required by the state is 100 percent of actual value. For each fiscal year ending September 30, property is valued as of the preceding January 1st. Source: Sarasota County Property Appraiser 285

288 Pro Forma Debt Service Coverage Limited Ad Valorem Tax Bonds, Series 2005, Series 2008, Series 2010 and Series 2014 (Environmentally Sensitive Lands Protection Program) September 30, 2015 Maximum Combined Annual Maximum Bond Service Limited Tax Pro-Forma Debt Requirement (1) Revenues (2) Service Coverage $7,561,180 $10,864, X (1) (2) Includes maximum combined annual debt service on the Series 2005 Bonds, Series 2008 Bonds and the Series 2010 and 2014 Refunding Notes. Assumes a full levy of 0.25 mill on all non-exempt property in the County based on Fiscal Year 2015 Taxable Assessed Valuation of $43,458,351,313. Source: Prepared by the County based on the Official Statement 286

289 Commercial Paper - Specific Borrowings September 30, 2015 General Government West Dearborn Street $ 4,855,000 Fire Stations 5,840,000 North County Sports Complex 1,835,000 South County Courts/Terrace Remodel 1,222,000 IFAS Financial System Upgrade 2,444, MHZ Communication Upgrade 1,992,000 Total General Government Commercial Paper Debt $ 18,188,

290 Communication Services Tax Revenue Bonds Series 2006 and 2010, and Communication Services Tax Revenue Refunding Note, Series 2014 and 2015 Continuing Disclosure September 30, 2015 Historical Receipts of Communications Services Tax Revenues Communication Services Tax Percent Fiscal Year Revenues Change 2006 $10,356,650 (0.80) % ,352, ,144,933 (1.83) ,160, ,590,006 (5.11) ,538,700 (0.48) ,734, ,675,572 (0.55) ,764, ,216,291 (5.09) Pro-Forma Debt Service Coverage Maximum Communication Services Tax Annual Revenues for the Fiscal Pro-Forma Debt Debt Service Year Ended September 30, 2015 Service Coverage $4,839,653 $10,216, X 288

291 Infrastructure Sales Surtax Revenue Bonds, Series 2008A, 2008B, 2014 and 2015 Continuing Disclosure September 30, 2015 Historical Receipts of Infrastructure Sales Surtax Revenues Infrastructure Sales Surtax Percent Fiscal Year Revenues Change 2006 $ 34,738, % ,719,886 (8.69) ,068,112 (11.51) ,147,991 (10.40) ,006,507 (0.56) ,069, ,440, ,430,933 (1) (0.03) ,612,008 (1) ,056, (1) Fiscal year 2013 revenue has eleven months of revenue and fiscal year 2014 includes thirteen months of revenue Pro-Forma Debt Service Coverage Maximum Infrastructure Sales Surtax Annual Revenues for the Fiscal Pro-Forma Debt Debt Service Year Ended September 30, 2015 Service Coverage $13,378,956 $ 34,056, X 289

292 Infrastructure Sales Surtax Revenue Bonds, Series 2008A, 2008B, 2014 and 2015 Continuing Disclosure September 30, 2015 Historical Population Distribution Factors Year Ended September 30 School Board of Sarasota County Unincorportated Sarasota County Incorporated Sarasota County % % %

293 Pro Forma Debt Service Coverage Second Guaranteed Entitlement Revenue Bonds Series 2013 September 30, 2015 Maximum Maximum Annual Limited Tax Pro-Forma Debt Bond Service Revenues Service Coverage $ 1,078,675 $1,148, X Source: Prepared by the County based on the Official Statement 291

294 Utility Bond Issue Continuing Disclosure Water System Historical Statistics Last Five Fiscal Years Description (2) 2015 Average Retail Accounts Served 75,884 76,010 77,469 82,237 84,686 Average Wholesale Accounts Served Total Average Accounts Served 75,898 76,024 77,483 82,241 84,690 Total Retail Sales (1,000's Gallon) 5,351,371 5,342,899 5,305,647 5,552,532 5,637,264 Total Wholesale Sales (1,000's Gallon) 595, , , , ,319 Total Sales (1,000's Gallon) 5,946,725 5,934,277 5,885,314 5,898,390 5,926,583 Total Sales (MGD) (1) (1) Millions of Gallons per Day is abbreviated as MGD (2) Dolomite Utilities Corp. acquisition in December 2013 Source: Sarasota County Public Utilities Sarasota County, Florida Utility Bond Issue Continuing Disclosure Monthly Water Charges Individually Metered Retail Customers September 30, 2015 System Customers (2) Billing Charge $ 1.84 Monthly Capacity Charge Consumption Charge (1) Between 0 to 12,000 gallons per dwelling unit: 0 to 4,000 gallons ,001 to 8,000 gallons ,001 to 12,000 gallons ,001 to 18,000 gallons 8.82 greater than 18,001 gallons Average Monthly Charge (4,000 gallons consumption) (1) Consumption charge is per 1,000 gallons consumed. (2) Dolomite Utilities Corp. acquisition in December Dolomite customers are being phased into Sarasota County system customer rates. Source: Sarasota County Public Utilities 292

295 Utility Bond Issue Continuing Disclosure Ten Largest Volume Retail Water Customers September 30, 2015 Total Percentage Consumption of Retail (1,000 Gallons) Consumption Las Palmas of Sarasota Apartments 21, % Glenridge Retirement Living on Palmer Ranch 20, Bay Village Condominiums 18, Doctors Hospital 17, The Mall at University of Town Center 17, Tuscany Apartments 17, Citation Club Apartments 17, Spanish Lakes Mobile Home Park 16, Gateway Lakes Apartments 16, Woodmere at Jacaranda Condominiums 15, Total 180, % Source: Sarasota County Public Utilities Sarasota County, Florida Utility Bond Issue Continuing Disclosure Wastewater System Historical Statistics Last Five Fiscal Years Description (2) 2015 Wastewater Accounts 64,731 65,678 67,464 74,456 77,943 Total Billable Flows (1,000's Gallon) 4,168,869 4,207,748 4,238,576 4,681,251 4,840,160 Total Billable Flows (MGD) (1) (1) Millions of Gallons per Day is abbreviated as MGD (2) Dolomite Utilities Corp. acquisition in December 2013 Source: Sarasota County Public Utilities 293

296 Utility Bond Issue Continuing Disclosure Monthly Wastewater Charges Individually Metered Retail Customers September 30, 2015 System Customers (3) Billing Charge $ 1.84 Monthly Readiness-to-Serve Charge Consumption Charge (1) (2) 7.54 Average Monthly Charge (4,000 gallons consumption) (1) Consumption charge is per 1,000 gallons consumed (2) Capped at 10,000 gallons of consumption for residential customers (3) Dolomite Utilities Corp. acquisition in December Dolomite customers are being phased into Sarasota County customer rates. Source: Sarasota County Public Utilities Sarasota County, Florida Utility Bond Issue Continuing Disclosure Water and Wastewater Facilities Impact Fees Cost per Equivalent Dwelling Unit (EDU) September 30, 2015 Water Facilities Impact Fee System Wide $ 2, Wastewater Facilities Impact Fee System Wide $ 2, Source: Sarasota County Public Utilities 294

297 Utility Bond Issue Continuing Disclosure Comparison of Monthly Water and Wastewater Service September 30, 2015 A comparison of service to a single-family residential customer using 4,000 gallons of water per month under the above rates in other comparable Florida communities as of September 30, 2015 is as follows: Combined Jurisdiction/Agency (3) Water-Only Wastewater-Only Service Sarasota County: System (1) $ $ $ Sarasota County: Dolomite (2) City of Sarasota City of Venice City of North Port Englewood Water District Charlotte County Manatee County City of Bradenton Collier County Hillsborough County Pinellas County (1) A $1.84 billing charge has been included in the Water-Only rate for presentation purposes, however a Wastewater-Only customer must pay a billing charge as well. (2) System acquired December 13, 2013, existing rates have not been adjusted to County-wide rates. (3) Amounts shown are exclusive of taxes or franchise fees, if any, and are rates as of September 30. Source: Sarasota County Public Utilities 295

298 Utility Bond Issue Continuing Disclosure Wastewater System Statistics Historical Wastewater Maximum Flows Three Month Average Daily Flow (MGD) (1) Permitted Capacity Fiscal Year Ended September 30, 3 Month Average Water Reclamation Facility Daily Flow Bee Ridge Central County Venice Gardens Siesta Key Oak Ford WWTF (2) Aqua Fruitville (3) Total Flows (4) (1) Millions of Gallons per Day is abbreviated as MGD. (2) The Oak Ford Wastewater Treatment Plant was decomissioned in July, (3) The Aqua Fruitville system was acquired in December, (4) Total Flows in Permitted Capacity does not include facilities out of service at September 30, Source: Sarasota County Public Utilities 296

299 Utility Bond Issue Continuing Disclosure Water Permitted Source and Treatment Capacity (MGD) (1) September 30, 2015 Source Treatment Pumpage Pumpage Production Production Facility Average Peak Average Peak Treatment Description Daily Month Daily Month Capacity County Owned Facilities: Carlton 85% recovery University 100% recovery Venice Gardens 75% recovery Total Pumpage Consolidated Permit (2) Bulk Water Supply Agreements: Manatee County (3) Peace River/Manasota Regional Water Supply Authority (PRMRWSA) Total (1) Millions of Gallons per Day is abbreviated as MGD. (2) In August, 2007 the County received approval from SWFWMD for a Consolidated Water Use Permit that combined the three wellfields under one permit. (3) Effective April, 2015 the Manatee County agreement was reduced from 8.0 MGD to 6 MGD. Source: Sarasota County Public Utilities 297

300 Utility Bond Issue Continuing Disclosure Historical Operating Results and Debt Service Coverage Last Five Fiscal Years Fiscal Year Ended September 30, Total Revenues (1) $ 94,698,427 $ 96,093,117 $ 95,559,669 $ 102,534,136 $ 106,921,759 Cost of Operation and Maintenance (2) 51,365,573 50,610,296 53,490,174 56,708,644 57,303,922 Net Revenues 43,332,854 45,482,821 42,069,495 45,825,492 49,617,837 Legally Available Impact Fees (3) 5,200,605 6,342,755 8,422,500 10,639,136 9,702,939 Net Revenues and Legally Available Impact Fees $ 48,533,459 $ 51,825,576 $ 50,491,995 $ 56,464,628 $ 59,320,776 Senior Lien Bonds Debt Service (4) $ 14,929,728 $ 15,713,145 $ 17,027,964 $ 17,721,327 $ 18,356,220 Senior Lien Debt Service Coverage Tests: Test 1 - Net Revenues Calculated Coverage Required Coverage in Resolution Test 2 - Net Revenues and Impact Fees Calculated Coverage Required Coverage in Resolution Junior Lien Debt Service (5) 6,377,575 5,741,454 4,491,081 4,610,150 4,712,474 Total Senior Lien and Junior Lien Debt Service $ 21,307,303 $ 21,454,599 $ 21,519,045 $ 22,331,477 $ 23,068,694 Junior Lien Debt Service Coverage Test: (6) Test 1 - Net Revenues and Impact Fees Calculated Coverage Required Coverage (7) Net Available for Other Required Transfers $ 27,226,156 $ 30,370,977 $ 28,972,950 $ 34,133,151 $ 36,252,082 Other Required Transfers: Central Service Charges 3,975,592 3,502,089 3,755,756 3,470,047 3,713,938 Payment in Lieu of Taxes 1,927,459 1,956,828 2,034,381 2,025,608 1,989,937 Commercial Paper Loan 80, Net Available for Other System Purposes $ 21,242,401 $ 24,912,060 $ 23,182,813 $ 28,637,496 $ 30,548,207 (1) Amounts shown do not include interest income earned on balances in the construction funds relating to the Bonds, the FDEP Loans or the Commercial Paper Loan and impact fee funds, if any, which are restricted to such accounts, or the unrealized gain on the fair market adjustment of investments pursuant to the Resolution. (2) Amounts shown do not include depreciation or amortization expenses or internal administrative charges pursuant to the Resolution. (3) Generally, under Florida law, Impact Fees may be validly imposed against new construction or development in order to fund capital improvements or capacity which are necessitated by such new construction or development to satisfy debt service for the bonds or other obligations issued for such purposes. Proceeds of such Impact Fees may be used only for the capital improvements or capacity attributable to the new construction or to pay associated debt service. (4) Senior lien bonds debt service is net of federal interest reimbursement. Federal interest reimbursement is no longer included in total revenue effective fiscal year For fiscal year 2015 the amount includes 2015 principal held in escrow for the refunded 2005 Utility Bonds (5) Includes debt service on the FDEP Loans, but not on the Commercial Paper Loan. (6) The junior lien debt coverage test is based on the combined debt service requirements of the Bonds and the Subordinate Obligations. (excluding the Commercial Paper Loan) (7) Required coverage pursuant to agreements made by the County regarding the FDEP Loans. Source: Prepared by the County from audited financial statements (on accrual basis) 298

301 Utility Bond Issue Continuing Disclosure Schedule of County Contributions to the Florida Retirement System September 30, 2015 Year Ended September 30 Annual Required Contribution Percentage Contributed 2008 $ 25,154, % ,029, ,441, ,898, ,632, ,919, ,912, ,684,

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303 OPEB Schedule of Funding Progress September 30, 2015 Actuarial Actuarial Accrued UAAL as a Value of Liability (AAL) - Unfunded Funded Covered Percentage of Actuarial Assets Entry Age AAL (UAAL) Ratio Payroll* Covered Payroll Valuation Date (a) (b) (b-a) (a/b) (c) ((b-a)/c) July 1, 2013 $ 8,753,000 $ 13,697,000 $ 4,944,000 64% $ 174,700, % July 1, ,446,000 9,706, , ,600, July 1, ,038,000 10,357,000 4,319, ,660, *Covered payroll is actual payroll for the fiscal year. 301

304 Revenue Bond Issues - Descriptions September 30, 2015 Communication Five-Cent Local Communication Limited Ad Valorem Services Tax Option Fuel Tax Services Tax Tax Bonds, Revenue Bonds, Revenue Bonds, Revenue Bonds, Series 2005 Series 2005A Series 2005 Series 2005B Original Authorization $ 17,165,000 $ 17,400,000 $ 17,900,000 $ 17,900,000 Unissued Issued 17,165,000 15,885,000 14,890,000 12,680,000 Retirements and Defeasements Through September 30, ,230,000 15,885,000 14,890,000 12,680,000 Balance Outstanding September 30, 2015 $ 5,935,000 $ - $ - $ - Date of Issue February 14, 2005 June 20, 2005 October 14, 2005 October 28, 2005 Maturity Range Principal Payment Dates October 1 October 1 October 1 October 1 Interest Payment Dates April-October April-October April-October April-October Denominations $5,000 $5,000 $5,000 $5,000 Interest Rates/ 3.50%/2016 Maturities 3.625%/ %/ %/2019 Call Feature Paying Agent US Bank & US Bank Trust US Bank Trust US Bank Trust Trust Company National Association National Association National Association New York, NY New York, NY New York, NY New York, NY 302

305 Communication Infrastructure Sales Infrastructure Sales Services Tax Limited Ad Valorem Surtax Revenue Surtax Revenue Revenue Bonds, Tax Bonds, Bonds, Bonds, Series 2006 Series 2008 Series 2008A Series 2008B $ 18,492,000 $ 87,000,000 $ 78,000,000 $ 75,000, ,705,000 83,605,000 73,995,000 69,895,000 16,860,000 82,250,000 59,655,000 61,065,000 $ 845,000 $ 1,355,000 $ 14,340,000 $ 8,830,000 August 11, 2006 March 4, 2008 September 24, 2008 December 18, October 1 October 1 October 1 October 1 April-October April-October April-October April-October $5,000 $5,000 $5,000 $5, %/ %/ %/ %/ %/ %/ %/ %/ %/ US Bank Trust US Bank Trust US Bank Trust US Bank Trust National Association National Association National Association National Association New York, NY New York, NY New York, NY New York, NY (Continued) 303

306 Revenue Bond Issues - Descriptions September 30, 2015 Communication Capital Capital Services Tax Improvement Improvement Revenue Bonds, Revenue Bonds, Revenue Bonds, Series 2010 Series 2010A Series 2010B Original Authorization $ 18,760,000 $ 9,380,000 $ 10,270,000 Unissued Issued 18,760,000 9,380,000 10,270,000 Retirements and Defeasements Through September 30, ,575,000 1,955,000 - Balance Outstanding September 30, 2015 $ 17,185,000 $ 7,425,000 $ 10,270,000 Date of Issue December 16, 2010 December 16, 2010 December 16, 2010 Maturity Range * ** ** ** Principal Payment Dates October 1 October 1 October 1 Interest Payment Dates April-October April-October April-October Denominations $5,000 $5,000 $5,000 Interest Rates/ *4.25%/2016 **5.203%/ **7.016%/ Maturities *4.55%/2017 **6.696%/ *4.981%/2018 *5.131%/2019 *5.331%/2020 **6.331%/ **6.990%/ **7.240%/ Call Feature Paying Agent US Bank Trust US Bank Trust US Bank Trust National Association National Association National Association New York, NY New York, NY New York, NY * Serial Bonds * Serial Bonds **Term Bonds **Term Bonds **Term Bonds 304

307 Second Guaranteed Infrastructure Sales Infrastructure Sales Entitlement Surtax Revenue Surtax Revenue Revenue Bonds, Refunding Bonds, Refunding Bonds, Series 2013 Series 2014 Series 2015 Totals $ 17,245,000 $ 37,355,000 $ 33,490,000 $ 455,357, ,245,000 37,355,000 33,490, ,320, , ,700,000 $ 16,590,000 $ 37,355,000 $ 33,490,000 $ 153,620,000 October 2, 2013 October 16, 2014 March 25, 2015 * ** October 1 October 1 October 1 April-October April-October April-October $5,000 $5,000 $5,000 *3.000%/ %/ %/ *3.250%/ %/ *3.500%/2024 *3.750%/2025 *4.000%/2026 *4.250%/ *4.500%/ *4.750%/ **5.00%/ US Bank Trust Cede & Co. Cede & Co. National Association New York, NY * Serial Bonds **Term Bonds 305

308 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Refunding Bonds, Series 2005A Original Authorization $ 54,490,000 Unissued - Issued 54,490,000 Retirements and Defeasements Through September 30, ,490,000 Balance Outstanding September 30, 2015 $ - Date of Issue April 7, 2005 Maturity Range - Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities - Call Feature - Paying Agent US Bank & Trust Company New York, NY 306

309 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Bonds, Series 2007 Original Authorization $ 48,650,000 Unissued - Issued 48,650,000 Retirements Through September 30, Balance Outstanding September 30, 2015 $ 48,650,000 Date of Issue April 18, 2007 Maturity Range * Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities **5.000% **4.500% Call Feature Paying Agent US Bank & Trust Company New York, NY ** Term Bonds 307

310 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Bonds, Series 2010 Original Authorization $ 46,655,000 Unissued - Issued 46,655,000 Retirements Through September 30, Balance Outstanding September 30, 2015 $ 46,655,000 Date of Issue December 29, 2010 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities **7.126% **7.401% Call Feature Paying Agent US Bank & Trust Company New York, NY **Term Bonds 308

311 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Refunding Bonds, Series 2011A Original Authorization $ 13,425,000 Unissued - Issued 13,425,000 Retirements Through September 30, Balance Outstanding September 30, 2015 $ 13,425,000 Date of Issue November 3, 2011 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities 4% % % % 2030 Call Feature Paying Agent US Bank National Association New York, NY 309

312 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Refunding Bonds, Series 2011B Original Authorization $ 4,435,000 Unissued - Issued 4,435,000 Retirements Through September 30, ,195,000 Balance Outstanding September 30, 2015 $ 3,240,000 Date of Issue November 3, 2011 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities 4% % % Call Feature Paying Agent US Bank National Association New York, NY 310

313 Utility System Revenue Bonds-Description September 30, 2015 Utility System Revenue Bonds Series 2013 Original Authorization $ 35,600,000 Unissued - Issued 35,600,000 Retirements Through September 30, ,045,000 Balance Outstanding September 30, 2015 $ 34,555,000 Date of Issue December 13, 2013 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Denominations $5,000 Interest Rates/Maturities *4% *5% **5% **4.5% Call Feature Paying Agent US Bank National Association New York, NY * Serial Bonds ** Term Bonds 311

314 Summary of Debt Service Requirements to Maturity Revenue Bonds September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 13,070,000 $ 7,902,228 $ 20,972, ,275,000 7,308,041 19,583, ,675,000 6,739,126 19,414, ,680,000 6,132,985 18,812, ,620,000 5,572,899 17,192, ,135,000 5,049,315 17,184, ,675,000 4,489,709 17,164, ,290,000 3,848,450 17,138, ,930,000 3,174,899 17,104, ,615,000 2,467,918 4,082, ,685,000 2,375,097 4,060, ,755,000 2,273,071 4,028, ,835,000 2,165,612 4,000, ,920,000 2,053,196 3,973, ,000,000 1,933,230 3,933, ,080,000 1,806,932 3,886, ,175,000 1,672,382 3,847, ,270,000 1,531,769 3,801, ,370,000 1,384,967 3,754, ,475,000 1,231,751 3,706, ,590,000 1,070,134 3,660, ,705, ,053 3,606, ,825, ,520 3,549, ,955, ,273 3,495, ,085, ,600 3,432, , ,500 1,076, , ,000 1,075, ,025,000 51,250 1,076,250 Total $ 153,620,000 $ 74,994,907 $ 228,614,

315 Debt Service Requirements to Maturity Limited Ad Valorem Tax Bonds, Series 2005 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 1,420,000 $ 219,479 $ 1,639, ,465, ,779 1,634, ,505, ,672 1,621, ,545,000 59,483 1,604,483 Total $ 5,935,000 $ 565,413 $ 6,500,

316 Debt Service Requirements to Maturity Communication Services Tax Revenue Bonds, Series 2006 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 845,000 $ 42,250 $ 887,250 Total $ 845,000 $ 42,250 $ 887,

317 Debt Service Requirements to Maturity Limited Ad Valorem Tax Bonds, Series 2008 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 750,000 $ 54,088 $ 804, ,000 24, , ,000 12, ,400 Total $ 1,355,000 $ 90,575 $ 1,445,

318 Debt Service Requirements to Maturity Infrastructure Sales Surtax Revenue Bonds, Series 2008A September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 4,550,000 $ 706,800 $ 5,256, ,780, ,300 5,259, ,010, ,500 5,260,500 Total $ 14,340,000 $ 1,436,600 $ 15,776,

319 Debt Service Requirements to Maturity Infrastructure Sales Surtax Revenue Bonds, Series 2008B September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 4,320,000 $ 416,706 $ 4,736, ,510, ,181 4,732,181 Total $ 8,830,000 $ 638,887 $ 9,468,

320 Debt Service Requirements to Maturity Communication Services Tax Revenue Bonds, Series 2010 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 415,000 $ 1,160,223 $ 1,575, ,000 1,142,585 1,567, ,000 1,123,248 1,558, ,000 1,101,580 1,551, ,000 1,078,491 1,543, ,000 1,053,702 1,538, ,000 1,022,996 1,527, , ,025 1,516, , ,787 1,502, , ,283 1,488, , ,513 1,477, , ,272 1,461, , ,284 1,448, , ,198 1,433, , ,015 1,416, , ,736 1,396, , ,522 1,378, , ,774 1,362, , ,130 1,339, , ,952 1,317, , ,878 1,298, , ,546 1,271, ,015, ,318 1,246, ,065, ,832 1,222, ,115,000 80,726 1,195,726 Total $ 17,185,000 $ 18,451,616 $ 35,636,

321 Debt Service Requirements to Maturity Capital Improvement Revenue Bonds, Series 2010A September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 430,000 $ 462,839 $ 892, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 71, , ,000 25, ,780 Total $ 7,425,000 $ 3,813,244 $ 11,238,

322 Debt Service Requirements to Maturity Capital Improvement Revenue Bonds, Series 2010B September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ - $ 720,543 $ 720, , , , , , , , , , , , , , , , , , , , , , , , , , ,543 1,050, , ,390 1,442, , ,121 1,415, , ,098 1,391, , ,970 1,364, , ,737 1,341, , ,049 1,311, , ,256 1,283, , ,007 1,258, ,005, ,952 1,224, ,045, ,441 1,194, ,085,000 76,124 1,161,124 Total $ 10,270,000 $ 14,535,747 $ 24,805,

323 Debt Service Requirements to Maturity Second Guaranteed Entitlement Revenue Bonds, Series 2013 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 340,000 $ 733,850 $ 1,073, , ,650 1,078, , ,000 1,078, , ,050 1,077, , ,800 1,075, , ,250 1,074, , ,400 1,077, , ,100 1,075, , ,450 1,076, , ,225 1,076, , ,350 1,074, , ,750 1,075, , ,138 1,075, , ,675 1,078, , ,825 1,074, , ,075 1,075, , ,762 1,077, , ,025 1,074, , ,100 1,074, , ,750 1,077, , ,000 1,078, , ,500 1,076, , ,250 1,078, , ,000 1,078, , ,750 1,075, , ,500 1,076, , ,000 1,075, ,025,000 51,250 1,076,250 Total $ 16,590,000 $ 13,544,475 $ 30,134,

324 Debt Service Requirements to Maturity Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ - $ 1,867,750 $ 1,867, ,867,750 1,867, ,590,000 1,867,750 6,457, ,815,000 1,638,250 6,453, ,055,000 1,397,500 6,452, ,310,000 1,144,750 6,454, ,580, ,250 6,459, ,855, ,250 6,455, ,150, ,500 6,457,500 Total $ 37,355,000 $ 11,570,750 $ 48,925,

325 Debt Service Requirements to Maturity Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ - $ 1,517,700 $ 1,517, ,517,700 1,517, ,517,700 1,517, ,020,000 1,517,700 6,537, ,225,000 1,316,900 6,541, ,435,000 1,107,900 6,542, ,650, ,500 6,540, ,935, ,000 6,543, ,225, ,250 6,536,250 Total $ 33,490,000 $ 10,305,350 $ 43,795,

326 Debt Service Requirements to Maturity Utility System Revenue Bonds, Series 2007 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ - $ 2,236,625 $ 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,236,625 2,236, ,650,000 2,236,625 4,886, ,780,000 2,104,125 4,884, ,045,000 1,965,125 6,010, ,885,000 1,762,875 6,647, ,105,000 1,543,050 6,648, ,335,000 1,313,325 6,648, ,575,000 1,073,250 6,648, ,825, ,375 6,647, ,090, ,250 6,650, ,360, ,200 6,646,200 $ 48,650,000 $ 40,506,700 $ 89,156,

327 Debt Service Requirements to Maturity Utility System Revenue Bonds, Series 2010 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ - $ 3,434,787 $ 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,434,787 3,434, ,170,000 3,434,787 4,604, ,225,000 3,351,412 4,576, ,340,000 3,264,119 4,604, ,400,000 3,168,630 4,568, ,465,000 3,068,866 4,533, ,535,000 2,964,471 4,499, ,610,000 2,850,865 4,460, ,685,000 2,731,709 4,416, ,765,000 2,607,002 4,372, ,855,000 2,476,375 4,331, ,940,000 2,339,086 4,279, ,035,000 2,195,507 4,230, ,780,000 2,044,896 10,824, ,205,000 1,395,089 10,600, ,645, ,826 10,358,826 $ 46,655,000 $ 72,954,510 $ 119,609,

328 Debt Service Requirements to Maturity Utility System Revenue Refunding Bonds, Series 2011A September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ - $ 615,212 $ 615, , , , , , ,213 1,260, , ,412 1,264, , ,413 1,267, ,140, ,212 1,674, ,200, ,213 1,677, ,255, ,212 1,672, ,320, ,463 1,674, ,385, ,462 1,673, ,455, ,213 1,674, ,525, ,462 1,671, ,590,000 85,463 1,675, ,000 21, ,862 $ 13,425,000 $ 6,157,237 $ 19,582,

329 Debt Service Requirements to Maturity Utility System Revenue Refunding Bonds, Series 2011B September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 420,000 $ 103,887 $ 523, ,000 87, , ,000 74, , ,000 60, , ,000 46, , ,000 32, , ,000 16, ,412 $ 3,240,000 $ 420,887 $ 3,660,

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331 Debt Service Requirements to Maturity Utility System Revenue Bonds, Series 2013 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 605,000 $ 1,665,575 $ 2,270, ,000 1,641,375 2,271, ,000 1,616,175 2,271, ,000 1,583,425 2,268, ,000 1,549,175 2,269, ,000 1,513,175 2,268, ,000 1,475,425 2,270, ,000 1,435,675 2,270, ,000 1,393,925 2,268, ,000 1,350,175 2,270, ,000 1,304,175 2,269, ,015,000 1,255,925 2,270, ,065,000 1,205,175 2,270, ,120,000 1,151,925 2,271, ,175,000 1,095,925 2,270, ,235,000 1,037,175 2,272, ,295, ,425 2,270, ,360, ,675 2,270, ,425, ,675 2,267, ,500, ,425 2,271, ,575, ,425 2,271, ,650, ,675 2,267, ,735, ,175 2,270, ,820, ,425 2,268, ,905, ,525 2,271, ,990, ,800 2,270, ,080, ,250 2,271, ,170,000 97,650 2,267,650 $ 34,555,000 $ 29,008,525 $ 63,563,

332 Bank Term Loans - Descriptions September 30, 2015 Special Assessment Bank Term Limited Ad Valorem Revenue Note, Revenue Note, Tax Refunding Bond Series 2009 Series 2010B Series 2010 Issued $ 2,011,000 $ 3,038,000 $ 15,360,000 Principal Payments through September 30, ,011,000 3,038,000 8,580,000 Balance Outstanding September 30, 2015 $ - $ - $ 6,780,000 Date of Issue June 17, 2009 September 17, 2010 December 10, 2010 Maturity Range Principal Payment Dates October 1 October 1 October 1 Interest Payment Dates April-October April-October April-October Interest Rates 3.582% 2.204% 2.1% Registered Owner SunTrust Bank SunTrust Bank Branch Banking & Trust Company 330

333 Capital First Guaranteed Improvement Revenue Entitlement Revenue Bank Term Bank Term Refunding Note, Refunding Note, Revenue Note, Revenue Note, Series 2012 Series 2012 Series 2013A Series 2014A $ 4,377,000 $ 5,925,000 $ 12,543,000 $ 10,044,000 2,696,000 2,465,000 2,031,000 1,397,000 $ 1,681,000 $ 3,460,000 $ 10,512,000 $ 8,647,000 May 11, 2012 August 24, 2012 October 11, 2013 February 14, October 1 October 1 October 1 October 1 April-October April-October April-October April-October 1.45% 1.43% 2.29% 2.18% Fifth Third Bank Fifth Third Bank STI Institutional & T.D. Bank, N.A. Government, Inc. 331

334 Bank Term Loans - Descriptions September 30, 2015 Communication Services Five Cent Local Option Bank Term Tax Revenue Refunding Tax Revenue Refunding Revenue Note, Note, Series 2014 Note, Series 2014 Series 2014B Issued $ 17,690,000 $ 9,255,000 $ 17,955,000 Principal Payments through September 30, ,000 90,000 1,525,000 Balance Outstanding September 30, 2015 $ 17,530,000 $ 9,165,000 $ 16,430,000 Date of Issue July 17, 2014 July 17, 2014 October 24, 2014 Maturity Range Principal Payment Dates October 1 October 1 October 1 Interest Payment Dates April-October April-October April-October Interest Rates 2.40% 2.29% 2.30% Registered Owner STI Institutional & Whitney Bank D/B/A DNT Asset Trust Government, Inc. Hancock Bank 332

335 Limited Ad Valorem Communication Services Tax Revenue Refunding Tax Revenue Refunding Bond, Series 2014 Note, Series 2015 Totals $ 70,740,000 $ 11,430,000 $ 180,368,000 1,330,000-25,323,000 $ 69,410,000 $ 11,430,000 $ 155,045,000 December 18, 2014 March 12, October 1 October 1 April-October April-October 2.70% 2.20% Raymond James Capital Funding, Inc. TD Bank, N.A. 333

336 Utility System Revenue Refunding Note-Description September 30, 2015 Utility System Revenue Refunding Note, Series 2012 Issued $ 50,290,000 Payments through September 30, ,275,000 Balance Outstanding September 30, 2015 $ 35,015,000 Date of Issue August 24, 2012 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Interest Rate % Call Feature Registered Owner Banc of America Public Capital Corp 334

337 Subordinate Utility System Revenue Refunding Note-Description September 30, 2015 Subordinate Utility System Revenue Refunding Note, Series 2012 Issued $ 15,720,000 Payments through September 30, ,310,000 Balance Outstanding September 30, 2015 $ 12,410,000 Date of Issue November 16, 2012 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Interest Rate 2.200% Call Feature Registered Owner Banc of America Public Capital Corp 335

338 Utility System Revenue Refunding Note-Description September 30, 2015 Utility System Revenue Refunding Note, Series 2015 Issued $ 28,000,000 Payments through September 30, Balance Outstanding September 30, 2015 $ 28,000,000 Date of Issue July 7, 2015 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Interest Rate 2.62% Registered Owner STI Institutional & Government, Inc 336

339 Solid Waste System Revenue Refunding Note-Description September 30, 2015 Solid Waste Revenue Refunding Note, Series 2015 Issued $ 21,690,000 Payments through September 30, Balance Outstanding September 30, 2015 $ 21,690,000 Date of Issue July 7, 2015 Maturity Range Principal Payment Date October 1 Interest Payment Dates April-October Interest Rate 2.5% Registered Owner STI Institutional & Government, Inc. 337

340 Summary of Debt Service Requirements to Maturity Bank Term Loans September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 9,964,000 $ 3,779,481 $ 13,743, ,550,000 3,563,600 15,113, ,963,000 3,313,259 14,276, ,544,000 3,069,409 14,613, ,465,000 2,811,025 16,276, ,793,000 2,478,888 16,271, ,132,000 2,138,603 16,270, ,481,000 1,789,894 16,270, ,838,000 1,432,491 16,270, ,790,000 1,066,214 11,856, ,040, ,950 8,830, ,975, ,095 7,555, ,165, ,770 7,556, ,345, ,315 7,543,315 Total $ 155,045,000 $ 27,403,994 $ 182,448,

341 Debt Service Requirements to Maturity Limited Ad Valorem Tax Refunding Bond, Series 2010 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 1,270,000 $ 142,380 $ 1,412, ,785, ,710 1,900, ,835,000 78,225 1,913, ,890,000 39,690 1,929,690 Total $ 6,780,000 $ 376,005 $ 7,156,

342 Debt Service Requirements to Maturity Capital Improvement Revenue Refunding Note, Series 2012 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 834,000 $ 24,375 $ 858, ,000 12, ,282 Total $ 1,681,000 $ 36,657 $ 1,717,

343 Debt Service Requirements to Maturity First Guaranteed Entitlement Revenue Refunding Note, Series 2012 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 845,000 $ 49,478 $ 894, ,000 37, , ,000 25, , ,000 12, ,656 Total $ 3,460,000 $ 124,697 $ 3,584,

344 Debt Service Requirements to Maturity Bank Term Revenue Note, Series 2013A September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 1,065,000 $ 240,725 $ 1,305, ,089, ,336 1,305, ,114, ,398 1,305, ,140, ,888 1,305, ,166, ,782 1,305, ,193, ,080 1,306, ,220,000 85,761 1,305, ,248,000 57,822 1,305, ,277,000 29,243 1,306,243 Total $ 10,512,000 $ 1,240,035 $ 11,752,

345 Debt Service Requirements to Maturity Bank Term Revenue Note, Series 2014A September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 880,000 $ 188,505 $ 1,068, , ,321 1,068, , ,722 1,068, , ,688 1,068, , ,218 1,068, ,000 88,312 1,068, ,002,000 66,948 1,068, ,023,000 45,104 1,068, ,046,000 22,803 1,068,803 Total $ 8,647,000 $ 969,621 $ 9,616,

346 Debt Service Requirements to Maturity Communication Services Tax Revenue Refunding Note, Series 2014 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 1,570,000 $ 420,720 $ 1,990, ,610, ,040 1,993, ,650, ,400 1,994, ,690, ,800 1,994, ,730, ,240 1,994, ,770, ,720 1,992, ,810, ,240 1,990, ,855, ,800 1,991, ,895,000 92,280 1,987, ,950,000 46,800 1,996,800 Total $ 17,530,000 $ 2,396,040 $ 19,926,

347 Debt Service Requirements to Maturity Five Cent Local Option Fuel Tax Revenue Refunding Note, Series 2014 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 825,000 $ 209,878 $ 1,034, , ,986 1,035, , ,636 1,036, , ,827 1,036, , ,560 1,036, , ,836 1,035, ,000 89,654 1,039, ,000 67,898 1,032, ,000 45,800 1,035, ,010,000 23,129 1,033,129 Total $ 9,165,000 $ 1,193,204 $ 10,358,

348 Debt Service Requirements to Maturity Bank Term Revenue Note, Series 2014B September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 1,665,000 $ 377,890 $ 2,042, ,705, ,595 2,044, ,740, ,380 2,040, ,780, ,360 2,040, ,825, ,420 2,044, ,865, ,445 2,042, ,905, ,550 2,039, ,950,000 90,735 2,040, ,995,000 45,885 2,040,885 Total $ 16,430,000 $ 1,946,260 $ 18,376,

349 Debt Service Requirements to Maturity Limited Ad Valorem Tax Refunding Bond, Series 2014 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 875,000 $ 1,874,070 $ 2,749, ,000 1,850,445 2,745, ,000 1,826,280 2,746, ,265,000 1,801,440 3,066, ,790,000 1,767,285 7,557, ,945,000 1,610,955 7,555, ,105,000 1,450,440 7,555, ,275,000 1,285,605 7,560, ,445,000 1,116,180 7,561, ,615, ,165 7,557, ,795, ,560 7,558, ,975, ,095 7,555, ,165, ,770 7,556, ,345, ,315 7,543,315 Total $ 69,410,000 $ 17,458,605 $ 86,868,

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351 Debt Service Requirements to Maturity Communications Services Tax Revenue Refunding Note, Series 2015 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 135,000 $ 251,460 $ 386, ,020, ,490 1,268, ,045, ,050 1,271, ,070, ,060 1,273, ,090, ,520 1,269, ,115, ,540 1,270, ,140, ,010 1,271, ,165, ,930 1,270, ,190,000 80,300 1,270, ,215,000 54,120 1,269, ,245,000 27,390 1,272,390 Total $ 11,430,000 $ 1,662,870 $ 13,092,

352 Debt Service Requirements to Maturity Utility System Revenue Refunding Note, Series 2012 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 5,300,000 $ 573,441 $ 5,873, ,385, ,643 5,871, ,465, ,452 5,863, ,915, ,952 5,223, ,815, ,459 5,043, ,730, ,604 4,879, ,405,000 72,141 4,477,141 $ 35,015,000 $ 2,217,692 $ 37,232,

353 Debt Service Requirements to Maturity Subordinate Utility System Revenue Refunding Note, Series 2012 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 1,180,000 $ 273,020 $ 1,453, ,210, ,060 1,457, ,235, ,440 1,455, ,265, ,270 1,458, ,290, ,440 1,455, ,320, ,060 1,457, ,345, ,020 1,453, ,375,000 78,430 1,453, ,405,000 48,180 1,453, ,000 17, ,270 $ 12,410,000 $ 1,488,190 $ 13,898,

354 Debt Service Requirements to Maturity Utility System Revenue Refunding Note, Series 2015 September 30, 2015 Fiscal Principal Interest Year Amount Due Due Total 2016 $ 2,800,000 $ 733,600 $ 3,533, ,875, ,240 3,535, ,955, ,915 3,539, ,030, ,494 3,537, ,110, ,108 3,538, ,200, ,626 3,546, ,280, ,786 3,542, ,335, ,850 3,511, ,415,000 89,473 3,504,473 $ 28,000,000 $ 3,790,092 $ 31,790,

355 Debt Service Requirements to Maturity Solid Waste System Revenue Refunding Note, Series 2015 September 30, 2015 Fiscal Principal Interest Year Due Due Total 2016 $ 2,480,000 $ 542,250 $ 3,022, ,545, ,250 3,025, ,610, ,625 3,026, ,675, ,375 3,026, ,740, ,500 3,024, ,810, ,000 3,026, ,880, ,750 3,025, ,950,000 73,750 3,023,750 Total $ 21,690,000 $ 2,510,500 $ 24,200,

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357 SINGLE AUDIT GRANTS COMPLIANCE SECTION 355

358 INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioners Sarasota County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Sarasota County, Florida (the County ), as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the County s basic financial statements, and have issued our report thereon dated May 4, Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County s internal control. Accordingly, we do not express an opinion on the effectiveness of the County s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 356

359 Honorable Board of County Commissioners Sarasota County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Shinn & Company LLC Bradenton, Florida CliftonLarsonAllen LLP Tampa, Florida May 4,

360 INDEPENDENT AUDITORS REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER , RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Sarasota County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Sarasota County, Florida s (the County ), compliance with the types of compliance requirements described in OMB Circular A-133 Compliance Supplement and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the County s major federal programs and state projects for the year ended September 30, The County s major federal programs and state projects are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state projects. Auditors Responsibility Our responsibility is to express an opinion on compliance for each of the County s major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter , Rules of the Auditor General for Local Governmental Entity Audits. Those standards, OMB Circular A-133 and Chapter require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about County s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County s compliance. 358

361 Honorable Board of County Commissioners Sarasota County, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, Other Matter The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and Chapter and is disclosed in the accompanying schedule of findings and questioned costs as item Our opinion on each major federal program and state project is not modified with respect to this matter. The County s response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The County s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter , but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 359

362 Honorable Board of County Commissioners Sarasota County, Florida The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the result of that testing based on the requirements of OMB Circular A-133 and Chapter Accordingly, this report is not suitable for any other purpose. Shinn & Company LLC Bradenton, Florida CliftonLarsonAllen LLP Tampa, Florida May 4,

363 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2015 Federal/State Agency CFDA Contract/Grant Federal Program/State Project Number Number Expenditures FEDERAL AWARDS Department of Housing and Urban Development Direct Programs CDBG - Entitlement Grants Cluster Community Development Block Grants/Entitlement Grants B-13-UC $ 1,236,564 Community Development Block Grants/Entitlement Grants B-08-UN ,099 Community Development Block Grants/Entitlement Grants B-11-UN ,060 1,332,723 Emergency Solutions Grant Program E14-UC ,568 Passed through City of Sarasota Community Development Block Grants/Entitlement Grants BCC ,069 Passed through Florida Department of Economic Opportunity Community Development Block Grants/State's program and Non- Entitlement Grants in Hawaii DB-P K48 236,964 Total Department of Housing and Urban Development 1,650,324 Department of Justice Direct Programs Supervised Visitation, Safe Havens for Children FL-AX-K ,650 Paul Coverdell Forensic Sciences Improvement Grant Program CD-BX ,560 State Criminal Alien Assistance Program AP-BX ,317 State Criminal Alien Assistance Program AP-BX ,030 96,347 JAG Program Cluster Edward Byrne Memorial Justice Assistance Grant Program DJ-BX ,247 Passed through Florida Office of Attorney General Crime Victim Assistance V ,575 Passed through Florida Department of Law Enforcement JAG Program Cluster Edward Byrne Memorial Justice Assistance Grant Program JAGC-SARA-1-R ,622 Total Department of Justice 491,001 Department of Transportation Direct Programs Federal Transit Cluster Federal Transit_Formula Grants FL-90-X668 39,146 Federal Transit_Formula Grants FL-90-X ,724 Federal Transit_Formula Grants FL-90-X775 94,443 Federal Transit_Formula Grants FL-90-X810 13,721 Federal Transit_Formula Grants FL-90-X ,207 Federal Transit_Formula Grants FL-90-X785 37,790 1,197,031 Job Access And Reverse Commute Program FL-37-X ,972 Passed through Florida Department of Transportation Highway Planning and Construction Cluster Highway Planning and Construction AR301 6,263,788 Job Access And Reverse Commute Program AQI46 131,953 Total Department of Transportation 7,947,744 Environmental Protection Agency Passed through Florida Department of Environmental Protection Capitalization Grants for Clean Water State Revolving Funds WW ,038,865 Total Environmental Protection Agency 3,038,865 The notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule. 361

364 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2015 Federal/State Agency CFDA Contract/Grant Federal Program/State Project Number Number Expenditures Department of Energy Direct Programs Conservation Research and Development DE-EE ,053 Total Department of Energy 133,053 U S Election Assistance Commission Passed through Florida Department of State Division of Elections Help America Vote Act Requirements Payments MOA ,346 Help America Vote Act Requirements Payments MOA , ,145 Total U S Election Assistance Commission 117,145 Department of Health and Human Services Direct Programs Substance Abuse and Mental Health Services_Projects of Regional and National Significance H79TI ,147 Passed through Florida Department of Revenue Child Support Enforcement COC58 376,619 Passed through Florida Department of Economic Opportunity CSBG Cluster Community Services Block Grant SB-0D ,198 Total Department of Health and Human Services 805,964 Department of Homeland Security Passed through Florida Division of Emergency Management Emergency Management Performance Grants FG-4D ,056 Emergency Management Performance Grants FG-5A ,243 Homeland Security Grant Program DS-L ,800 Homeland Security Grant Program DS-L ,174 Homeland Security Grant Program DS-P ,670 44,644 Emergency Operations Centers DS ,791 Emergency Operations Centers DS-8Z , ,053 Total Department of Homeland Security 505,940 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 14,690,036 The notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule. 362

365 Schedule of Expenditures of Federal Awards and State Financial Assistance For the year ended September 30, 2015 Federal/State Agency CSFA Contract/Grant Federal Program/State Project Number Number Expenditures STATE FINANCIAL ASSISTANCE Executive Office of the Governor Direct Projects Emergency Management Programs BG $ 75,493 Emergency Management Programs BG ,251 94,744 Emergency Management Projects CP ,959 Emergency Management Projects CP ,112 Emergency Management Projects CP ,347 Total Executive Office of the Governor 100,091 Department of Environmental Protection Direct Projects Beach Management Funding Assistance Program ST1 20,547 Statewide Surface Water Restoration and Wastewater Projects S ,048 Local Government Cleanup Contracting GC693 85,076 Local Government Cleanup Contracting S , ,588 Passed through Southwest Florida Water Management District Water Management Districts-Land Acquisition and Improvement CS ,612 Water Protection and Sustainability Program CON ,167 Statewide Surface Water Restoration and Wastewater Projects CS ,790 Total Department of Environmental Protection 548,752 Department of State and Secretary of State Direct Projects State Aid to Libraries ST ,645 Total Department of State and Secretary of State 382,645 Department of Transportation Direct Projects County Incentive Grant Program AR384 98,255 Public Transit Block Grant Program AQQ81 1,619,534 Transportation Regional Incentive Program (TRIP) AR387 3,436,189 Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program ARH36 523, G , ,475 Public Transit Service Development Program ARK28 286,915 Public Transit Service Development Program APO57 176,557 Public Transit Service Development Program AQQ97 58, ,069 Total Department of Transportation 6,318,522 Department of Health Direct Project County Grant Awards C8056 5,058 County Grant Awards C ,160 County Grant Awards C2056 1,022 County Grant Awards C , ,225 Total Department of Health 103,225 Department of Juvenile Justice Direct Projects Juvenile Assessment Centers (JAC) X ,455 Total Department of Juvenile Justice 30,455 TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 7,483,690 The notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance are an integral part of this schedule. 363

366 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance Year Ended September 30, BNOTE 1. GENERAL The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance presents the activity of all federal awards and state financial assistance of Sarasota County, Florida. The County reporting entity is defined in Note 1 to the County s Basic Financial Statements for the year ended September 30, All federal awards and state financial assistance passed through to other government agencies are included in the schedule. NOTE 2. BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance is presented using the modified accrual basis of accounting, which is described in Note 1 to the County s Basic Financial Statements for the year ended September 30, NOTE 3. SUBRECIPIENTS Of the expenditures presented in the Schedule, Sarasota County provided, as practical, federal awards and state financial assistance to subrecipients as follows: UProgram TitleU Federal CFDA or State CSFAU NumberU Amount Provided tou Subrecipients Community Development Block Grants/Entitlement Grants $154,910 Emergency Solutions Grant Program ,107 Supervised Visitation, Safe Havens for Children ,650 Community Services Block Grant ,448 Total Provided to Subrecipients $537,

367 SARASOTA COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Financial Statement Section Part I - Summary of Auditors Results Type of auditors report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Significant deficiency(ies) identified? Noncompliance material to financial statements noted? No None Reported No Federal Awards Section Internal control over compliance: Material weakness(es) identified? Significant deficiency(ies) identified? No None Reported Type of auditors report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) Circular A- 133? No Identification of major federal programs: CFDA Number Name of Federal Program or Cluster Community Development Block Grants / State s Program and Non-Entitlement Grants in Hawaii Highway Planning and Construction Job Access and Reverse Commute Program Capitalization Grants for Clean Water State Revolving Funds 365

368 SARASOTA COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Dollar threshold used to determine Type A Federal programs $440,700 Auditee qualified as low-risk auditee? No State Financial Assistance Section Internal control over compliance: Material weakness(es) identified? Significant deficiency(ies) identified? No None Reported Type of auditors report issued on compliance for major projects: Any audit findings disclosed that are required to be reported in accordance with state requirements? Unmodified Yes Identification of major State projects: CSFA Number Name of State Project State Aid to Libraries Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program Public Transit Block Grant Program Transportation Regional Incentive Program (TRIP) Dollar threshold used to determine Type A State projects $300,

369 SARASOTA COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Part II - Financial Statement Findings This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements and abuse related to the financial statements for which Government Auditing Standards requires reporting in a Circular A-133 audit. There were no such instances required to be reported. Part III - Findings and Questioned Costs Major Federal Programs This section identifies the audit findings required to be reported by Section.501(a) of Circular A-133 as well as any abuse findings involving federal awards that is material to a major program. There were no such instances required to be reported. Part IV - Findings and Questioned Costs Major State Projects This section identifies the audit findings required to be reported under Rule (1)(l)4, Rules of the Auditor General Documentation Retention State Project Information Florida Commission for the Transportation Disadvantaged (CTD) CSFA# CTD Trip and Equipment Grant Program Grant Award Number: G0190 and ARH36 Contract Year: FY 2015 Criteria In order for an individual to be eligible for paratransit service, an application must be completed. The County s mobility coordinators will initial all applications evidencing review and approval. Condition and Context Out of 28 individuals sampled during eligibility testing, 2 participant applications that had been completed and approved in prior years were unable to be located. Questioned Costs None Cause Document retention procedures were not properly followed. 367

370 SARASOTA COUNTY, FLORIDA Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects Year Ended September 30, 2015 Effect The County was in violation of Section 7.60 of the applicable grant agreements, which state that the award recipient shall retain sufficient records demonstrating its compliance with the terms of the Trip and Equipment Grant agreement for a period of at least five years from the date the audit report is issued. Recommendation We recommend that the County s document retention policy associated with administering this grant be formally established, communicated to employees, and sufficiently enforced and monitored. Views of Responsible Officials and Corrective Action Plan We concur and have developed a process for ensuring original SCATPlus passenger applications are on file. Any clients identified with missing an original application will be contacted by the eligibility office to obtain such information. All information will be filed appropriately and updated in the Trapeze Scheduling Computer System effective immediately. Part V Other Matters No Corrective Action Plan is required because there were no findings required to be reported under the Federal or Florida Single Audit Acts. 368

371 SARASOTA COUNTY, FLORIDA Summary Schedule of Prior Audit Findings and Corrective Action Plan Year Ended September 30, 2015 Prior - Year Findings and Questioned Costs - Part II Financial Statement Findings IC Calculation of Landfill Closure and PostClosure Liability Corrective action was taken. Prior - Year Findings and Questioned Costs - Part III Major Federal Programs No prior year findings. Prior - Year Findings and Questioned Costs - Part IV State Projects No prior year findings. 369

372

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374 PRODUCED BY: KAREN E. RUSHING CLERK OF THE CIRCUIT COURT AND COUNTY COMPTROLLER SARASOTA, FLORIDA