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Fiscal Year 2015 THIS PAGE INTENTIONALLY LEFT BLANK Government Auditing Standards Rules of the Auditor General A-8 MONROE COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS HEATHER CARRUTHERS, MAYOR DISTRICT 3 DANNY KOLHAGEGEORGE NEUGEN T DISTRICT 1DISTRICT 2 DAVID RICESYLVIA MURPH Y DISTRICT 4DISTRICT 5 COUNTY ADMINISTRATO R ROMAN GASTESI CLERK OF THE CIRCUIT COURT AND CHIEF FINANCIAL OFFICE R AMY HEAVILIN, CPA & CFE A-10 Government Auditing Standards Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27,Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement 68 Audits of States, Local Governments, and Non-Profit Organizations Government Auditing Standards Government Auditing Standards THIS PAGE INTENTIONALLY LEFT BLANK As Finance Department management under the direction of the Chief Financial Officer and Clerk of the Circuit Court & Comptroller in Monroe County, we offer readers this narrative overview and analysis of the financial activities of Monroe County Government (the County) for the fiscal year ended September 30, 2015. We encourage readers to consider this information in conjunction with additional information furnished in the letter of transmittal of the report and the basic financial statements for an overall view of the Financial Highlights The assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at September 30, 2015 by $540.1 million, a decrease of $38.9 million or 6.7%. This overall net decrease was comprised of the following two components: 30.1 million as a result of fiscal year 2015 R operations. The County implemented Governmental Accounting Standards (GASB) Statement No. 68, R Accounting and Financial Reporting for Pensions - an amendment to GASB Statement No. 27, which requires employers providing a defined benefit plan to report their net pension beginning net position by $66.2 million for Governmental Activities and $2.7 million for Business-Type Activities for a total restatement of beginning net position of $69.0 million. Comparing FY 2015 with FY 2014, the results of governmental activities (excluding restatement) produced an increase in net position of $26 million, while in FY 2014 net position increased by $32.2 million. Comparing FY 2015 with FY 2014, the results of business-type activities (excluding restatement) produced an increase in net position of $4.1 million, while in FY 2014 net position increased by $280,060. Comparing FY 2015 with FY2014, the Countyncreased by $18.7 million or 8.2%. The majority of this increase, or $15.6 million, is the result of an inter-local agreement expense with Key Largo Wastewater Treatment District. This agreement is explained in further detail in note 14 of the financial statements. an increase of $476,822 from the prior year. Bonded debt and loans of the County increased $70.7 million in FY 2015. This was comprised of $81.9 million in new debt and $11.2 million in reductions (payments). The bonded debt and loans compared to net position increased from 10.7% to 24.6%. The other components of long-term debt are discussed in further detail later in this report. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the County statements, which include government-wide financial statements, fund financial statements, as well as notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. C-1 Government-Wide Financial Statements Government-wide financial statements are designed to provide the reader with a broad overview of the financial position of the County and are similar to private-sector financial statements. They include a Statement of Net Position and a Statement of Activities. These statements appear on pages D-1 through D-4 of this report. The Statement of Net Position shows the Coun and deferred outflows or resources less its liabilities and deferred inflows of resources at September 30, 2015. The difference between these assets and deferred outflows of resources, and the liabilities and deferred inflows of resources, is reported as net position. Changes in net position over time may be indicative of an improving or deteriorating financial position. Net position is reported in three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. The Statement of Activities, which follows the Statement of Net Position, presents information showing how the net position changed during fiscal year 2015. The statement presents all underlying events, which contribute to the change, irrespective of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only affect cash flows in future fiscal periods. Such items include revenues earned and expenses incurred but not yet paid, as well as unused vacation leave, all of which will produce changes in cash in a future fiscal period. Both statements attempt to distinguish functions of the 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 for services (business-type activities). Governmental activities reported in the statements include general government, public safety, physical environment, transportation, economic environment, human services, culture and recreation, and court related. Business-type activities include the Card Sound Road and Toll Bridge. The government-wide financial statements include the Monroe County Comprehensive Plan Land Authority, a legally separate entity. Financial information for this component unit is reported separately within the government-wide financial statements from the financial information presented for the primary government. 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. The 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 the County can be divided into three general categories: governmental, proprietary and fiduciary funds. Governmental Funds Governmental Funds essentially account for the same functions as those reported in the government-wide statements described above. However, unlike the government-wide statements, this set of financial statements focuses on events that produce near-term inflows and outflows of spendable resources available at the end of the fiscal year, which is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating the available spendable resources. C-2 These statements appear on pages E-1 through E-16 of this report. It can be useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide statements. Therefore, reconciliations are provided as a link between both the governmental fund statements and the government-wide statements to assist in this comparison. cial revenue, debt service and capital project funds. Governmental funds individually presented as major funds in the the General Fund; three Special Revenue Funds: Fine and Forfeiture, HIDTA Grants and Governmental Grants; the Debt Service fund; and three capital project funds: One Cent Infrastructure Surtax, Big Coppitt Wastewater Project and Cudjoe Regional Wastewater Project. There are many smaller governmental funds in the County. They have been presented in a total column individual fund statements section of the report. Proprietary Funds The County maintains two different types of proprietary funds, enterprise and internal service. The proprietary fund statements appear on E-17 through E-26 of this report. Enterprise funds are used to report business-type activities in the government-wide financial statements. The County maintains five major enterprise funds: Municipal Service District-Waste, Key West Airport, Card Sound Bridge, PFC & Operations Restrictions and the Marathon Airport. There are no non-major enterprise funds. Internal service funds are used to accumulate and allocate costs among the ons. The County uses internal service funds to account for insurance activities (wor insurance and risk management) and fleet management activities. Internal service funds are presented in total in the fund financial statements but may be reviewed individually in the combining and individual fund statements section of the report. Because these services predominantly benefit governmental rather than business-type functions, they have been included within the government-wide financial statements as governmental activities. They are also combined into a single, aggregated presentation in the proprietary fund financial statements. Fiduciary Funds The County uses fiduciary funds to account for resources held for the benefit of parties outside of County government, such as assets held in trust and agency funds by the County as an agent for individuals. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the funds is much like that used for proprietary funds. The fiduciary fund financial statements appear on pages E-27 through E-28 of this report. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in both government-wide and fund financial statements. The notes commence on page F-1 and continue throughout the entire F page section. C-3 Other Information Required Supplementary Information has been added for fiscal year 2015 for the FRS and HIS Pension Plan and for the Volunteer Firefighters and Emergency Medical Services Pension Plan and is summarized on pages G-1 through page G-7. Combining and individual statements and schedules mentioned earlier, which present details of non-major funds used in governmental and enterprise funds, commence on page H-1 and continue throughout the entire H page section. This section also includes the budget to actual schedules, and statements for major capital project, internal service and agency funds. Additional information about the County can be found under the Statistical Section in the I page section and the Single Audit Section in the J page section of this report. Government-Wide Financial Analysis Monroe County Net Position (in thousands) The following is a condensed summary of Net Position compared to the prior year. Governmental Business-type Total Primary ActivitiesActivitiesGovernment 201520142015201420152014 Current and Other Assets$ 273,222$ 235,393$ 25,653$ 32,118$ 298,875$ 267,511 Capital Assets 431,514 370,954 92,240 82,285 523,754 453,239 Total Assets 704,736 606,347 117,893 114,403 822,629 720,750 Deferred Outflows 11,241 - 428 - 11,669 - Current 39,696 32,077 2,656 2,774 42,352 34,851 Long-Term Liabilities 232,586 99,435 4,889 2,706 237,475 102,141 Total Liabilities 272,282 131,512 7,545 5,480 279,827 136,992 Deferred inflows 13,868 4,765 462 - 14,330 4,765 Net Position: Net Investment in Capital Assets 298,887 310,396 85,161 81,817 384,048 392,213 Restricted 165,286 128,647 6,984 6,198 172,270 134,845 Unrestricted (34,346) 31,027 18,169 20,908 (16,177) 51,935 $ 429,827$ 470,070$ 110,314$ 108,923$ 540,141$ 578,993 Total Net Position Changes in net position financial position. The net position decreased in FY 2015 by $38.9 million following an increase in FY 2014 of $32.2 million. The FY 2015 reduction in net position was largely due to the adoption of the new pension standard and the restatement of net position. C-4 The largest portion of net position for 2015 and 2014 is the net investment in capital assets (e.g., land and depreciated buildings, infrastructure and equipment) less any outstanding debt related to their acquisition. This category represents 71.1% and 67.8% of total primary government net position for fiscal years 2015 and 2014, respectively. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the 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. Total primary government net position above also includes restricted net position. Restricted net position (31.9%) are resources subject to external restriction on how they may be used. The restrictions reported for business-type activities are comprised of the landfill closure and post-closure costs and passenger facility charges. Restrictions reported for governmental activities are special purpose funds which report the use of resources as designated by external entities. The remaining component of net position is unrestricted net position. Unrestricted net position ligations to citizens and creditors. The increase in capital assets improvement construction and other projects that have an impact on the citizens of the County. The County also continues to construct improvements to public facilities such as Plantation Key Courthouse and Detention Center. Total liabilities were $142.8 million higher than in 2014. The County received total debt proceeds of $81.9 million in FY 2015 commitment to continue Waste Water for the collection, transmission and treatment facilities contributed to the increase of long term debt. As a result of adopting the new pension standard, the County was required to record a $61.9 net pension liability in FY 2015. Other post-employment benefits and compensated absences have continued to increase. The increase in both deferred inflows and deferred outflows of resources was due to the implementation of the new pension standard. Comparison of Current Assets and Liabilities (in thousands) A comparison of current assets as compared to current liabilities for both governmental and business-type activities can be a good indication of the responsibilities. The ratios for the current and prior fiscal years are as follows: The schedule above demonstrates that the County has more than adequate cash flows. C-5 Monroe County Changes in Net Position (in thousands) The table below summarizes the changes in net position for the current and previous year. GovernmentalBusiness-typeTotal Primary ActivitiesActivitiesGovernment 201520142015201420152014 Revenues: Charges for Services $ 32,840 $ 31,162 $ 26,943 $ 26,677 $ 59,783 $ 57,839 Operating Grants and Contributions 32,045 24,485 5,997 2,546 38,042 27,031 Capital Grants and Contributions 16,272 22,554 1,362 1,089 17,634 23,643 General Revenues: Property Taxes 75,323 73,682 - - 75,323 73,682 Other Taxes 76,468 71,188 - - 76,468 71,188 State Revenue Sharing 2,938 3,298 - - 2,938 3,298 Investment Income 2,103 1,641 133 66 2,236 1,707 Miscellaneous 4,782 2,571 102 18 4,884 2,589 Total Revenues 242,771 230,581 34,537 30,396 277,308 260,977 Expenses: General Government 34,493 37,267 - - 34,493 37,267 Public Safety 99,118 98,221 - - 99,118 98,221 Physical Environment 4,850 2,886 - - 4,850 2,886 Transportation 4,968 5,837 - - 4,968 5,837 Economic Environment 31,304 30,286 - - 31,304 30,286 Human Services 9,117 8,776 - - 9,117 8,776 Culture and Recreation 5,049 4,765 - - 5,049 4,765 Court Related 9,042 8,564 - - 9,042 8,564 Loss on Sale of Land 1,146 1,079 - - 1,146 1,079 Interest on Long Term Debt 2,909 1,090 - - 2,909 1,090 Interlocal Agreement Expense 15,566 - - - 15,566 - Solid Waste - - 17,445 17,091 17,445 17,091 Toll Bridge - - 1,352 1,322 1,352 1,322 Key West Airport - - 9,390 9,315 9,390 9,315 Marathon Airport - - 1,445 1,973 1,445 1,973 Total Expenses 217,562 198,771 29,632 29,701 247,194 228,472 Change in Net Position before transfers 25,209 31,810 4,905 695 30,114 32,505 Transfers 797 415 (797) (415) - - Change in Net Position 26,006 32,225 4,108 280 30,114 32,505 470,070 438,171 108,923 108,643 578,993 546,814 Total Net Position-October 1 (66,249) (326) (2,717) - (68,966) (326) Adjustments to Net Position-October 1 403,821 437,845 106,206 108,643 510,027 546,488 Net Position-October 1 (as Restated) Net Position - Ending $ 429,827 $ 470,070 $ 110,314 $ 108,923 $ 540,141 $ 578,993 C-6 Governmental Activities For FY 2015 net position of the governmental activities decreased by $40.2 million, compared to an increase of $31.9 million in FY2014. The graph below represents a comparison of program revenues to program expenses for governmental activities for fiscal year 2015. It is apparent from these graphs that general revenues were required to cover expenses in each of the functions noted. Monroe County, Florida Governmental Activities (in Millions) For the year ended September 30, 2015 99.1 100.0 90.0 80.0 70.0 60.0 50.0 36.9 34.5 40.0 31.3 30.0 18.9 20.0 12.6 9.1 9.0 5.9 5.05.0 4.8 10.0 3.0 2.0 1.3 0.6 0.0 GeneralPublic SafetyPhysicalTransportationEconomicHumanCulture &Court Related GovernmentEnvironmentEnvironmentServicesRecreation Program RevenuesProgram Expenses The largest revenue sources for governmental activities in FY 2015 are property taxes in the amount of $75.3 million and all other taxes totaling $76.5 million. Total taxes of $151.8 million amounted to 62.5% of the evenue source is charges for services at $32.8 million or 13.5% of governmental activity revenues excluding transfers. The 2015 graph identifies the largest expense function as public safety amounting to $99.1 million. This is 45.6% of the total expenses for governmental activities. The next largest functions are general government and economic environment that total $65.8 million or 30.2% of total expenses for governmental activities. The general government expenses include the Tax Collector, Property Appraiser, Clerk of the Circuit Court, and the Supervisor of Elections. C-7 The graph below represents a comparison of program revenues to program expenses for governmental activities for fiscal year 2014. Monroe County, Florida Governmental Activities (in Millions) For the year ended September 30, 2014 98.2 100.0 90.0 80.0 70.0 60.0 50.0 37.2 33.6 40.0 30.2 30.0 22 15.6 20.0 8.7 8.5 5.8 4.7 10.0 2.8 2.0 1.61.7 1.0 0.3 0.0 GeneralPublic SafetyPhysicalTransportationEconomicHumanCulture &Court Related GovernmentEnvironmentEnvironmentServicesRecreation Program RevenuesProgram Expenses The largest revenue sources for governmental activities in 2014 are property taxes in the amount of $73.7 million and all other taxes totaling $71.2 million. Total taxes of $144.9 million amounted to 62.8% of the County's governmental activity revenues excluding transfers. The second largest revenue source is charges for services at 13.7% of governmental activity revenues excluding transfers. The 2014 graph identifies the largest expense function as public safety amounting to $98.2 million. This is 49.5% of the total expenses for governmental activities. The second largest function is general government in the amount of $37.3 million or 18.8% of total expenses for governmental activities. The general government expenses include the Tax Collector, Property Appraiser, Clerk of the Circuit Court, and the Supervisor of Elections. Business-Type Activities The purpose of proprietary funds is to recover the majority of costs incurred in providing a service through user fees and charges for that service. Charges for services revenues in 2015 amounted to $26.9 million or 78.0% of all revenue sources. Other revenue sources include operating grants, capital grants, contributions, investment income, and miscellaneous. Total revenues excluding transfers from other funds were in excess of expenses excluding transfers to other funds by $4.9 million. The change in net position in 2015 was $4.1 million. Fiscal year 2015 had an increase of $3.7 million in capital and operating grants, as well as an increase in charges for services of $265,639. C-8 Governmental Funds Governmental funds provide information on near-term inflows, outflows, and balances of spendable resources. In assessing the f the fiscal year. The governmental fund types include the general fund, special revenue, debt service and capital project funds. The 211.8 million at the end of the current fiscal year. This represents a $37.1 million or 21.2% increase from prior year. Governmental funds held nonspendable, restricted, committed or assigned amounts totaling $198.1 million to reflect the various constraints placed on those resources for future use. The General Fund is the chief operating fund of the County. At September 30, 2015, the total fund balance in the General Fund was $36.0 million, an increase of $476,822 from the prior year. The unassigned portion of the General Fund fund balance was $13.7 million or 38.1%. Total revenues had very little change from the prior year. Revenue from taxes increased $382,576 due to a decision by the Board of County Commissioners to increase the aggregate millage rate. Expenditures decreased $2.5 million or 2.9%. Other Major Fund Information (in thousands) Fine and FofeitureHIDTA GrantsGovernmental Grants 201520142015201420152014 Revenues and Other Sources$ 47,628 $ 46,601 $ 19,976 $ 19,541 $ 6,323 $ 6,135 Expenses and Other Uses 48,635 49,461 19,976 19,541 8,650 5,662 Increase/(Decrease) in Fund balance$ (1,007) $ (2,860)$ - $ - $ (2,327) $ 473 One CentBig Coppitt Wastewater Infrastructure SurtaxProject 2015201420152014 Revenues and Other Sources$ 23,936 $ 20,246 $ 400 $ 569 Expenses and Other Uses 14,446 13,961 716 725 Increase/(Decrease) in Fund balance$ 9,490 $ 6,285 $ (316) $ (156) Cudjoe Regional Wastewater ActivitiesDebt Service 2015201420152014 Revenues and Other Sources$ 64,807 $ 53,710 $ 12,637 $ 5,758 Expenses and Other Uses 54,474 57,846 12,155 6,181 Increase/(Decrease) in Fund balance$ 10,333 $ (4,136) $ 482 $ (423) C-9 Fine and Forfeiture Special Revenue Fund Revenue for this fund increased slightly as a result of an increase in Ad Valorem taxes. Total operating expenses in this fund were up slightly and transfers to other funds were down from last year. In comparing the FY 2015 change in fund balance to FY 2014, there was an $1.9 million improvement. HIDTA Grants Special Revenue Fund This fund is used to account for reimbursement grants funded by the U.S. Department of Justice to fight drug trafficking. The volume of revenues and expenditures has not significantly changed as programs established by the grantor have been continued. Governmental Grants Special Revenue Fund The fiscal year 2015 revenue decreased in the area of intergovernmental activity. The majority of decreased expenditures was related to construction activity associated with No Name Key Bridge and Bayside Shared Use Path. One Cent Infrastructure Surtax Capital Project Fund The County voted during the 2012 general election to extend the surtax expiration date from 2018 to 2033. This is similar to the State shared revenues based on sales tax; the trend for this receipt has been growing each year. The revenue source will be used to fund on-going capital projects. Big Coppitt Wastewater Project Capital Project Fund Revenues decreased approximately 30% over prior year. Expenditures were consistent with the prior year. Cudjoe Regional Wastewater Capital Project Fund This fund is used to account for the activity associated with the commitment to construct collection, transmission and treatment facilities. In 2015, the treatment plant was constructed and a majority of the collection system in installed. Some of the financial highlights include the following: Total revenues and other sources increased by $11.1 million or 21%. The funding sources for this project primarily include: Mayfield Grant: Inter-local agreement with Key Largo Wastewater Treatment District R Clean Water State Revolving Fund Construction Loan R Infrastructure Revenue Bonds Series 2014 R Line of Credit Agreement R Total expenses and other sources decreased by $3.4 million or 5.8%. Expense activity was related to wastewater construction projects. Debt Service The debt service fund received transfers from other funds to cover $12.2 million in principal and interest payments on long-term debt. Proprietary Funds Proprietary fund statements provide the same information as in the business-type activities column of the government-wide statements, but in greater detail and on a fund basis for enterprise funds and internal service funds. Municipal Service District-Waste Enterprise Fund: This fund maintains the sites. The County continues to outsource the waste haul-out services through a major contract. Revenues for charges for services (special assessments and tipping fees) are slightly higher than the prior year. The change in service revenues is attributed to an improvement in continues to increase. The cost of operations remained consistent with the prior year. C-10 Card Sound Bridge Enterprise Fund: The Bridge is an alternative route to Revenues from tolls increased slightly as tourism rebounds somewhat. The cost of operations remained consistent with the prior year. Key West Airport Enterprise Fund: Revenue decreased slightly in charges for services. The cost of operations remained consistent with the prior year. PFC & Operations Restrictions: This fund is used to collect passenger finance charges to be used for s fund was reported as part of the Key West Airport Enterprise Fund. During fiscal year ending 2015, this fund had an $745,658 net increase to the net position. Marathon Airport Enterprise Fund: This fund experienced a relatively stable year. Grant and contribution funding increased by approximately $680,130. Other factors concerning the finances of these four major funds have already been addressed in the discussion of the -type activities. Compensation Fund, Group Insurance Fund, Risk Management Fund and the Fleet Management Fund. The self-insurance funds are an important part of the Internal service fund operating revenues were consistent with prior year except Risk Management funds, which experienced an increase. Operating expenses rose slightly due to higher asserted and paid claims Capital Assets The two categories: those assets subject to depreciation, such as buildings, infrastructure, and equipment and those not subject to depreciation such as land and construction in progress. At September 30, 2015, the County has $516.7 million invested in a variety of capital assets, as reflected in the following schedule, which represents a net increase (additions less retirements and depreciation) of $63.4 million or 14% from the end of last year. MONROE COUNTY, FLORIDA CAPITAL ASSETS (IN THOUSANDS) NET OF DEPRECIATION Governmental ActivitiesBusiness-type ActivitiesTotal 201520142015201420152014 Land$ 74,316 $ 76,859 $ 5,648 $ 5,648 $ 79,964 $ 82,507 Construction In Prog. 153,949 88,162 1,729 910 155,678 89,072 Buildings 100,779 103,381 43,193 44,132 143,972 147,513 Equipment 26,956 25,761 1,093 1,237 28,049 26,998 Infrastructure 72,713 73,959 33,497 30,358 106,210 104,317 Capacity Rights 2,800 2,832 - - 2,800 2,832 Total$ 431,513 $ 370,954 $ 85,160 $ 82,285 $ 516,673 $ 453,239 C-11 The investment in capital assets includes land, buildings, improvements, machinery and equipment, plant and equipment, infrastructure, roads, bike paths and sidewalks. Major capital asset events during the year included: the construction of its wastewater collection systems and solid waste disposal. During FY 2015 these projects totaled approximately $55.2 million. Repairs to the No Name Key Bridge for approximately $2.9 million. Key West Airport EMAS project at approximately $4.4 million. Approximately $6.5 million in equipment (public safety and other departments), vehicles, computers, and furniture. Ongoing significant projects include the following: Cudjoe Regional Wastewater, North Key Largo Utility Project, Key West Senior Center, CR8905 Bike Path, Crawl Key Fire Training, and Plantation Key Courthouse & Detention Center. Long-Term Debt At September 30, 2015, the County had long-term debt in the amount of $244.3 million. This debt is mainly comprised of revenue bonds and notes secured by pledges of revenues. Revenue-secured debt for governmental activities was $132.6 million. The County has no general obligation bonds. Additions to long-term debt consisted of the following: Infrastructure Revenue Bonds Series 2014 - $31.9 million Clean Water State Revolving Fund Construction Loan Agreement 2014 - $18.5 million Line of Credit - $16.0 million Inter-local agreement with Key Largo Wastewater Treatment District - $15.6 million Increases to accrued compensated absences - $6.6 million Increases in the cost of other post-employment benefits - $6.7 million and HIS pension liability - $30.1 million Retirements of long-term debt amounted to $29.2 million which included the retirement of $11.2 million of revenue bonds and notes. Service rates the Infrastructure Sales Surtax Revenue Bonds, Series 2007 and 2014 as have rated these issues Further details are available in notes to the financial statements pages F-38 through F-43. Budgetary Highlights General Fund There were slight variations from the original budget to the amended budget for miscellaneous revenues, taxes, charges for services, and investment income. The more significant variations from the amended budget to the actual were the following: Clerk Commissions and Fees as well as Court Related Costs were less than anticipated. Public Works Facility Maintenance was under budget in various categories. Property Appraiser and Supervisor of Elections were both under budget for fiscal year 2015. C-12 Hurricane budget was not needed in fiscal year 2015. Transportation and Human Services expenditures were down. The -term goals and policies are developed during the budget process each year. The BOCC discusses trends, capital projects and policy priorities at public meetings held during the budget planning phase. These priorities are further refined, clarified and adopted during the budget preparation. The fiscal year 2016 budget was developed in consideration of the economic stabilization being experienced and the resulting moderate increases to sales tax revenues. The financial outlook for the County remains sound. There is a modest rebounding of property values, slow gains in consumer spending and declining unemployment. Revenues from tourism, our main economic resource, continue to reflect increases. Total budgeted revenues/sources increased between 2015 and 2016. The increase in the overall budget is General Fund is ad valorem taxes. The aggregate millage rate for 2016 is 3.7239 which is 5.5% under last 86 and .03% below the rolled-backed millage rate of 3.725. After property taxes, the Local Government Half-Cent Sales Tax is the largest revenue source in the General Fund; an increase of approximately 9.1% is expected. Licenses and Permits are expected to increase 3% in the coming year due to the adoption of a new building fee schedule. The new permit fees are calculated based upon the construction value of the proposed improvements. Budgeted expenditures have increased, particularly in the Physical Environment and Transportation categories. Expenditures for capital projects are ongoing. Significant capital projects include the following: Construction of the Cudjoe Regional Wastewater system Canal Master Plan Freeman Justice Center - Acoustics Magnolia Street Public Works Offices Libraries Bernstein Park Stock Island Summerland Fire Station No Name Key Bridge Training Academy Crawl Key Plantation Key Courthouse and Jail Roads/Paving County-wide Harvey Senior Center advertise the Keys as a tourist destination. Requests for Information This financial report is designed to provide a general overview of the finances for all those with an interest in its finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Amy Heavilin, CPA/CFE, Clerk of the Courts & Comptroller located at 500 Whitehead Street, Key West, Florida 33040. C-13 THIS PAGE INTENTIONALLY LEFT BLANK BASICFINANCIALSTATEMENTS - - THIS PAGE INTENTIONALLY LEFT BLANK THIS PAGE INTENTIONALLY LEFT BLANK Thenotestothefinancialstatementsareanintegralpartofthesestatements. E11 Thenotestothefinancialstatementsareanintegralpartofthesestatements. E12 Thenotestothefinancialstatementsareanintegralpartofthesestatements. E13 THIS PAGE INTENTIONALLY LEFT BLANK Thenotestothefinancialstatementsareanintegralpartofthesestatements. E14 Thenotestothefinancialstatementsareanintegralpartofthesestatements. E15 Thenotestothefinancialstatementsareanintegralpartofthesestatements. E16 THIS PAGE INTENTIONALLY LEFT BLANK Government-wide Financial Statements: Fund Financial Statements governmental, proprietary, and fiduciary Government-wide, Proprietary, and Fiduciary Fund Financial Statements Governmental Fund Financial Statements Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68 Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27 Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68 REQUIREDSUPPLEMENTARYINFORMATION G1 G2 G3 G4 THIS PAGE INTENTIONALLY LEFT BLANK G6 G7 THIS PAGE INTENTIONALLY LEFT BLANK COMBININGANDINDIVIDUAL FUNDSTATEMENTSANDSCHEDULES THIS PAGE INTENTIONALLY LEFT BLANK H78 H79 H80 H81 H82 THIS PAGE INTENTIONALLY LEFT BLANK COMPLIANCESECTION Government Auditing Standards Florida StatutesRules of the Auditor General-Local Government Entity Audits deficiency in internal control material weakness significant deficiency Government Auditing Standards. Government Auditing Standards OMB Circular A-133 Compliance Supplement Government Auditing StandardsAudits of States, Local Governments, and Non-Profit Organizations, Rules of the Auditor General. Rules of the Auditor General, Rules of the Auditor General deficiency in internal control over compliance material weakness in internal control over compliance significant deficiency in internal control over compliance Passed through Florida Department of Elder Affairs and Alliance for the Aging: Passed through Florida Department of Revenue, Agency for Children and Families, and Office of Child Support Enforcement: Passed through Florida Department of Economic Opportunity: Direct Program: Passed through Office of the Attorney General: Passed through Florida Department of Law Enforcement: FKOC Substance Abuse Educ & Relapse Prevention Court Mandated, Criminal/Substance Abuse Case Management Guidance Care: Assisted Living Prevents Recidivism Women's Jail Incarceration Drug Abuse Program Direct Program: Direct Program: Passed through Florida Department of Transportation: Passed through Florida Division of Emergency Management: Passed through the City of Miami: Passed through Florida Department of Economic Opportunity: Passed through Department of Children and Families: Audits of States, Local Governments, and Non-Profit Organizations Government Auditing Standards Audit Report of the Monroe County Board of County Commissioners Purchasing Card Policy and Procedures Rules of the Auditor General - Local Governmental Entity Audits THIS PAGE INTENTIONALLY LEFT BLANK Government Auditing Standards Audits of States, Local Governments, and Non-Profit Organizations Government Auditing Standards Rules of the Auditor General Rules of the Auditor General Rules of the Auditor General Rules of the Auditor General Rules of the Auditor General  Rules of the Auditor General Rules of the Auditor General Rules of the Auditor General Rules of the Auditor General   MONROECOUNTY,FLORIDA SCHEDULEOFRECEIPTSANDEXPENDITURESOF FUNDSRELATEDTOTHEDEEPWATERHORIZONOILSPILL FortheFiscalYearEndedSeptember30,2015 AmountAmount ReceivedExpended intheinthe 201415201415 SourceFiscalYearFiscalYear UnitedStatesDepartmentof: RESTOREActAgreementNo.N/AN/A EnvironmentalCleanUpConsortium: AgreementNo.N/AN/A BritishPetroleum: AgreementNo.1405961,107,947 L1