Palm Beach County's 2009 Comprehensive Annual Financial Report

Transcript

C o m p r e h e n s i v e A n n u al F i n an c i al R e p o r t Palm Beach County, Florida Fiscal Year Ended September 30, 2009 P r e p a r e d b y t h e C l e r k & C o m p t r o l l e r ’ s O f f i c e , Pa l m B e a c h C o u n t y About the Clerk & Comptroller’s Office A s the third largest of the 67 Clerk’s offices in Florida, the Palm Beach County Clerk & Comptroller serves a local population of 1.3 million residents. The office performs more than 1,000 different functions and provides services from several locations throughout Palm Beach County and online at www.mypalmbeachclerk.com. More than 170 years ago, the Florida Constitution established the Clerk & Comptroller as an independent public trustee, directly elected by the public to serve four major functions: Chief Financial Officer, Treasurer & Auditor Provides the independent check and balance on Palm Beach County’s revenue, debt and spending. Performs unbiased accounting and auditing of funds to ensure every County expense serves a public purpose. Invests and earns interest income on County funds to reduce the tax burden on the residents of Palm Beach County. Maintains financial records and produces all required financial statements and reports. Clerk of the Circuit Court Protects the integrity of public records and public funds as an impartial, third-party directly accountable to the citizens. Receives, processes and files all civil and criminal court documents; disburses all court fees, fines and costs; and provides the public with access to court records. The Clerk also manages the County’s jury system, issues marriage licenses and provides a Self Service Center for residents who choose to represent themselves in court proceedings. SHARON R. BOCK Clerk & Comptroller Palm Beach County County Recorder Maintains the Official Records of the County dating back to 1909. Records documents such as mortgages, deeds, liens, judgments and marriage licenses and makes scanned images available online. Clerk of the Board of County Commissioners Prepares and maintains the records of all Palm Beach County Commission meetings and is the Clerk to the County’s Value Adjustment Board. For the convenience of its customers, the Clerk & Comptroller provides a Web site at www.mypalmbeachclerk.com with the following services: Court case record searches, Official Record searches, Value Adjustment Board Petitions, Foreclosure Sales, County financial information and County Commission meeting minutes and video. The Clerk & Comptroller has earned the Governor’s Sterling Award for Organizational Performance Excellence; an Excellence, Values, Integrity and Ethics Award for Corporate Best Practices Not-for-Profit/Government; and was twice named a finalist for the Best Places to Work Award by the South Florida Business Journal. The office’s financial reporting is also regularly recognized for excellence. The Comprehensive Annual Financial Report has earned the Government Finance Officers Association’s Certificate of Achievement for 20 consecutive years. The GFOA has also recognized the CAFR’s sister publication, Checks & Balances: Your Guide to County Finances. The user-friendly guide has received an “Outstanding Achievement in Popular Annual Financial Reporting” every year since its Fiscal Year 2006 debut. PALM BEACH COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2009 Prepared By SHARON R. BOCK Clerk & Comptroller Palm Beach County Finance Department PALM BEACH COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2009 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Transmittal Letter of the Clerk & Comptroller ..................................................................................i Principal Officials ......................................................................................................................................x Organization Chart .................................................................................................................................. xi Certificate of Achievement for Excellence in Financial Reporting ......................................... xii FINANCIAL SECTION Report of Independent Certified Public Accountants .......................................................... xiii Management’s Discussion and Analysis....................................................................................... xv Basic Financial Statements Government-wide Financial Statements Statement of Net Assets .....................................................................................................................2 Statement of Activities .......................................................................................................................4 Fund Financial Statements Descriptions of Major Funds ............................................................................................................7 Balance Sheet - Governmental Funds ............................................................................................8 Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Assets - Governmental Activities ................................................. 10 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ................................................................................................. 12 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities ........................................................ 14 Statement of Net Assets - Proprietary Funds ............................................................................. 16 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds ........................................................................................ 20 Statement of Cash Flows - Proprietary Funds ........................................................................... 22 Statement of Fiduciary Net Assets - Agency Funds ................................................................ 26 Notes to the Financial Statements ................................................................................................... 28 Required Supplementary Information: Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual for General Fund and Major Special Revenue Funds with Annually Appropriated Budgets: - General Fund ................................................................................................................................. 113 - Fire Rescue Special Revenue Fund ........................................................................................ 114 - Sheriff Special Revenue Fund .................................................................................................. 115 Schedules of Funding Progress - Pension Plans ..................................................................... 116 Schedules of Funding Progress – Other Post Employment Benefits ................................ 117 Combining and Individual Fund Statements and Schedules Nonmajor Governmental Funds Descriptions ....................................................................................................................................... 119 Combining Balance Sheet - Nonmajor Governmental Funds ............................................. 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds .......................................................... 128 Schedules of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: Special Revenue Funds: Tourist Development ................................................................................................................... 133 Law Enforcement Grants ............................................................................................................ 134 County Transportation Trust...................................................................................................... 135 Municipal Service Taxing District ........................................................................................... 136 Library Taxing District ................................................................................................................ 137 Community and Social Development ..................................................................................... 138 Affordable Housing (SHIP) Trust Fund ................................................................................. 139 Hurricane Housing Recovery Plan Fund……………………………………………………140 Palm Tran ........................................................................................................................................ 141 Other Special Revenue Fund ..................................................................................................... 142 Clerk & Comptroller .................................................................................................................... 143 Tax Collector .................................................................................................................................. 144 Property Appraiser ........................................................................................................................ 145 Supervisor of Elections ............................................................................................................... 146 Debt Service Funds: General Obligation Bonds .......................................................................................................... 147 Revenue Bonds .............................................................................................................................. 148 Other Financing ............................................................................................................................. 149 Capital Projects Funds: Criminal Justice ............................................................................................................................. 150 Environmental Lands ................................................................................................................... 151 Fire Rescue ..................................................................................................................................... 152 Major Fund - General Government ......................................................................................... 153 Libraries ........................................................................................................................................... 154 Parks and Recreation .................................................................................................................... 155 Major Fund - Road Program ...................................................................................................... 156 Street and Drainage ...................................................................................................................... 157 Internal Service Funds Descriptions ....................................................................................................................................... 159 Combining Statement of Net Assets .......................................................................................... 160 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets ...................................................................................................... 161 Combining Statements of Cash Flows ....................................................................................... 162 Agency Funds Descriptions ....................................................................................................................................... 165 Combining Statement of Fiduciary Net Assets - Agency Funds ....................................... 166 Combining Statement of Changes in Assets and Liabilities All Agency Funds ......................................................................................................................... 167 STATISTICAL SECTION Net Assets by Component ................................................................................................................... 176 Changes in Net Assets.......................................................................................................................... 178 Fund Balance – Governmental Funds.............................................................................................. 182 Changes in Fund Balance – Governmental Funds ....................................................................... 184 Tax and Intergovernmental Revenue by Source........................................................................... 186 Assessed Value and Estimated Actual Value of Taxable Property......................................... 188 Direct and Overlapping Property Tax Rates .................................................................................. 190 Principal Property Tax Payers ........................................................................................................... 191 Property Tax Levies and Collections ............................................................................................... 192 Non-Ad Valorem Revenue ................................................................................................................. 194 Ratios of Outstanding Debt by Type................................................................................................ 197 Ratios of General Bonded Debt Outstanding ................................................................................ 198 Direct and Overlapping Governmental Activities Debt ............................................................. 199 Legal Debt Margin Information ........................................................................................................ 200 Pledged Revenue Coverage ................................................................................................................ 201 Demographic and Economic Statistics ............................................................................................ 203 Principal Employers.............................................................................................................................. 204 County Government Employees by Function/Program.............................................................. 206 Operating Indicators by Function/Program.................................................................................... 207 Capital Asset Statistics by Function/Program ............................................................................... 208 Introductory Section The Introductory Section contains the letter of transmittal, which provides an overview of Palm Beach County’s finances, economic prospects, and achievements. Also, included in this section is the Certificate of Achievement for Excellence in Financial Reporting awarded by the Government Finance Officers Association. It is the highest form of recognition in governmental financial reporting. March 22, 2010 To the residents of Palm Beach County, Florida, and the Honorable Burt Aaronson, Chairman, and the Members of the Board of County Commissioners: The Palm Beach County, Florida, Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2009, is a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States (GAAP) and audited by independent Certified Public Accountants in accordance with auditing standards generally accepted in the United States (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (GAGAS). The CAFR was prepared by the Finance Department of the Clerk & Comptroller of Palm Beach County in accordance with Section 218.32, Florida Statutes. Responsibility for both the accuracy of the data presented, and the completeness and fairness of the presentation, including all disclosures, rests with the Clerk & Comptroller‟s office. Palm Beach County has established a comprehensive set of internal controls designed to ensure that the County‟s assets are protected from loss, theft or misuse, and that sufficient reliable accounting information is compiled to allow for financial statement preparation in conformity with GAAP. Since the cost of internal control should not exceed its expected benefit, the County‟s internal control structure has been designed to provide reasonable, but not absolute, assurance that the financial statements will be free from material misstatement. To the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Independent Audits - In accordance with Sections 11.45 and 125.01, Florida Statutes, the Palm Beach County financial statements were audited by McGladrey & Pullen LLP, an independent Certified Public Accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County for the fiscal year ended September 30, 2009, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. Based on their audit, the independent Certified Public Accountants concluded that there was a reasonable basis for rendering an unqualified opinion stating that the County‟s financial statements for the fiscal year ended September 30, 2009, were fairly presented in conformity with GAAP. i 301 North Olive Avenue West Palm Beach, FL 33401 P.O. Box 229 West Palm Beach, FL 33402 Telephone 561-355-2996 Facsimile 561-355-6727 www.mypalmbeachclerk.com As a recipient of federal and state financial assistance, the County is responsible for maintaining an adequate internal control structure to ensure compliance with applicable laws and regulations related to these programs. This internal control structure is reviewed by the independent Certified Public Accountant in the annual Single Audit, which covers federal grants and other financial assistance; and the annual Florida Single Audit, which covers state grants and other financial assistance. The Single Audit was designed to meet the requirements of the Single Audit Act of 1984, Single Audit Act Amendments of 1996, and the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, as well as Section 215.97, Florida Statutes. Information related to this Single Audit, including a Schedule of Expenditures of Federal Awards and State Financial Assistance, the independent Certified Public Accountants‟ reports on compliance and internal controls, and a Schedule of Findings and Questioned Costs are included in a separately issued Single Audit report. Management‟s Discussion and Analysis (MD&A) is a narrative required to accompany the basic financial statements. It provides an objective and easy to read analysis of the County‟s financial activities based on currently known facts, decisions, or conditions. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent Certified Public Accountants‟ report. PROFILE OF THE GOVERNMENT Palm Beach County is a political subdivision of the State of Florida governed by the State Constitution and general laws of the State of Florida. The legislative and governing body of the County is the seven-member Board of County Commissioners. Each County Commissioner is elected on a district basis for a four-year term of office and each County Commissioner is a resident of their Commission District. The Commission elects a chairperson who serves as presiding officer. The Clerk & Comptroller‟s office is responsible for safeguarding public records and public funds. The Clerk is independently elected by and accountable to Palm Beach County residents. In addition to the roles of Chief Financial Officer, Treasurer and Auditor for Palm Beach County, the Clerk & Comptroller is the Clerk of the Circuit Court, County Recorder and Clerk of the Board of County Commissioners As a result of a County-wide general election on November 6, 1984, Palm Beach County became a Home Rule Charter County on January 1, 1985, operating under a “County Manager” form of government with separation of legislative and executive functions. The County Administrator is responsible for the operations of all departments of the County, except for the elected Constitutional Officers, the joint State/County agencies or the staff departments that report directly to the Commission. Services Provided - The County provides a full range of services including public safety (law enforcement and fire protection), conservation and resource management, public improvements, human services, parks, recreation and cultural facilities, planning and zoning, transportation, economic development, property assessment, tax collection, official recordkeeping, court-related ii support functions, and general administrative services. enterprise activities. The County also operates several Financial Reporting Entity - The separately elected members of the Board of County Commissioners (BOCC) and the Constitutional Officers together are the elected officials who are accountable to the residents of Palm Beach County. The officials holding these offices as of September 30, 2009, are identified on the page immediately following this letter. The organizations of the BOCC and the Constitutional Officers together comprise the Palm Beach County primary government. This report covers the Palm Beach County reporting entity which includes the primary government as well as the component units. Component units are legally separate entities for which the primary government is financially accountable. Component units are either classified as blended component units or discretely presented component units depending on the nature of the entity‟s relationship with the primary government. The blended component units are included as a part of the primary government because although they are legally separate entities, in substance they are considered to be a part of the primary government‟s operations. The Solid Waste Authority of Palm Beach County is a blended component unit. The discretely presented component units are reported in a separate column in the governmentwide financial statements to emphasize that they are legally separate from the primary government. The Housing Finance Authority of Palm Beach County, the Metropolitan Planning Organization, and the Westgate/Belvedere Homes Community Redevelopment Agency are reported as discretely presented component units. More information on the financial reporting entity may be obtained in Note 1 of the Notes to the Financial Statements. Budgetary Controls - The County's annual budget is prepared pursuant to Chapter 129, Florida Statutes, and represents the legal authority to levy taxes and expend funds for all County purposes. Florida Statutes also require that the County have a balanced budget. The County has complied with this requirement after inclusion of re-appropriated beginning fund balances, in accordance with the County‟s budget policy. The Office of Financial Management and Budget (OFMB) initiates the budget process by reviewing revenue and expenditure projections for the coming year. Based on the County Administrator's direction, OFMB prepares and distributes specific instructions to the various department heads and to the elected Constitutional Officers to guide them in the preparation of their budget requests. The County Administrator's tentative budget is prepared by OFMB and presented to the County Commission prior to July 15. The BOCC reviews the budget and makes such changes as it deems necessary. A summary of the tentative budget is advertised and publicly reviewed and revised prior to approval and adoption by the County Commission. For managerial purposes, the Board has delegated its authority to approve intradepartmental transfers to the Director of OFMB. All other amendments to the adopted budget must be approved by Board action at a regularly scheduled Board meeting. New Initiatives – To bolster public governance, the County created the Office of Inspector General, effective January 1, 2010. Palm Beach is one of only two Counties in Florida to have iii created an Office of Inspector General. In addition, the County passed a local Code of Ethics and established a Commission on Ethics. The Office of Inspector General will provide independent oversight of County operations. The Inspector General will be authorized to conduct audits of, require reports from, and receive full and unrestricted access to the records of all County departments. Other local governmental agencies will be able to employ the services of and be subject to the Inspector General by contract. The costs of reviews, audits, inspections and investigations by the Inspector General shall be defrayed by imposition of a fee which shall be equal to one quarter of one percent (.25%) of the price of qualifying contracts. To ensure independence, the Inspector General will be selected by the Commission on Ethics and one representative each from the State Attorney and Public Defender. FACTORS AFFECTING FINANCIAL CONDITION Located on the southeast coast, Palm Beach County is the largest of Florida‟s sixty-seven counties. The County‟s 2,268 square miles include 1,980 square miles of land and 288 square miles of surface water, making it one of the largest counties east of the Mississippi River. After steady annual increases in the population growth rate between 2000 and 2007, the rate began to decline in 2008, and it is predicted that this will continue through Fiscal Year (FY) 2010. Also, while significant investment has been made to develop the Biotechnology industry in Palm Beach County, tourism, construction and agriculture have been and continue to be the leading industries in the County. Palm Beach County‟s climate has enhanced its image as a location that provides a high quality of life to its residents. The average temperature is 75 degrees with an average of 82 degrees in the summer and 67 degrees in the winter. The wet season extends from June through October, with an average annual rainfall of 62 inches. Close to several major Florida cities, central Palm Beach County is about one hour north of Fort Lauderdale, one and one-half hours north of Miami, and two and one-half hours south of Orlando. Local Economy - Tourism – Palm Beach County government is making a concentrated and continuing effort to increase the number of visitors to our area each year. More than 50,000 people are employed in jobs related to the tourism industry, with tourists contributing $1.2 billion annually to the County‟s economy. Aerospace - Palm Beach County is particularly strong when it comes to aerospace engineering and manufacturing. Some 850 employees staff Pratt & Whitney‟s two West Palm Beach facilities. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, industrial gas turbines, and space propulsion systems. Sikorsky Aircraft Corporation, a sister company of Pratt & Whitney, manufactures helicopters at its Florida Assembly and Flight Test Operations Center in northern Palm Beach County. Agriculture – Palm Beach County agricultural acreage has remained stable for the last five years. Palm Beach County still leads the state of Florida, and all counties east of the Mississippi River, in agricultural proceeds. Currently, Palm Beach County ranks among the top counties in the United States and first in the state of Florida for agricultural sales. Palm Beach County leads the nation in the production of sugarcane and fresh sweet corn. It leads the state in the production of iv rice, bell peppers, lettuce, radishes, Chinese vegetables, specialty leaf produce, and celery. The 468,000 acres dedicated to agriculture represent 38 percent of the County‟s total land mass. It ranks third in Florida in nursery production with estimated sales at $200 million, and leads the state in agricultural wages and salary with over $300 million. The industry currently uses bagasse, a sugarcane by-product, in conjunction with other waste wood products as the fuel source for the largest agriculturally based biomass co-generation plant in the United States for electricity generation. Several crops are currently grown as potential sources for ethanol production. Equestrian acreage in western Palm Beach County continues to expand, currently ranking it as the second largest equine county in the state, behind Marion County. Bio-Technology & Manufacturing - Electronics and other high tech products also play an important role in the County‟s local economy. The arrival of Scripps Research Institute and the Max Planck Florida Institute is providing a boost to the area‟s technology industry. These two internationally recognized Research Institutes will anchor an 8 million square foot Bioscience Cluster in Northern Palm Beach County. A “cluster” of related bio-tech businesses will form a hub around Scripps, strengthening the County‟s position as a leader in this industry. Construction – During FY 2009, residential development and permitting activity continued to decrease over the previous year. There were 506 single family permit starts and 81 multi-family permit starts compared to 687 and 147 in FY 2008. Total values of residential permit starts were $150.8 million in FY 2009 versus $223.8 million in FY 2008. Non-residential work also continued to decrease during this time period, with permitted values decreasing from $157.7 million in FY 2008 to $98 million in FY 2009. Overall, permitted values in FY 2009 were $488 million, representing a decrease of 25% from the previous year. Contributing factors that continue to impact the decline of construction in Palm Beach County include the application of stringent standards for the availability of credit, a glut of available housing due to speculative purchasing, a record number of foreclosures and increasing unemployment. Long-Term Financial Planning - The BOCC adopted a millage rate of 3.7811 mills (excluding debt service) for FY 2009, which is the same rate as FY 2008. The FY 2009 budget provided funding at the level and quality of services expected by the residents of the County while maintaining a level of reserves sufficient to maintain the County‟s AAA General Obligation bond rating. The total countywide millage rate, including voted debt, resulted in taxes per capita of $484.46, down 5.4% from FY 2008. Recent projects include: an interlocal agreement with Indian Trail Improvement District to provide services to the Acreage/Loxahatchee; a land swap and master plan amendment to allow for future construction of a fourth concourse at Palm Beach International Airport; and approval of an agreement with the Max Planck Society for construction and operation of a biomedical research facility at Florida Atlantic University‟s Jupiter campus. Palm Beach County is also benefitting from the American Recovery and Reinvestment Act of 2009 (ARRA) signed into law by the Federal Government on February 19, 2009. The Recovery Act was designed to stimulate the economy through measures that modernize the nation‟s infrastructure, improved energy efficiency, and expand educational opportunities and access to health care. Recovery Funds have been awarded to the County as grants – both formula-based and competitive in nature. To date, the County‟s ARRA grant awards total more than $50 million v and will focus on energy efficiency, infrastructure improvements, public transportation, and social services such as job training and providing food and shelter. Cash Management and Investments - The majority of the County‟s investments are pooled into a consolidated account in order to maximize investment performance. In addition, a very limited number of restricted investment accounts have been established to comply with various bond covenants. The Clerk & Comptroller provides investment management for the Board of County Commissioners, the Sheriff, the Housing Finance Authority of Palm Beach County, as well as Clerk & Comptroller accounts. All other constitutional officers and the Solid Waste Authority utilize other investment management services. As Treasurer, the Clerk invests and earns interest income on County funds to reduce the tax burden on the residents of Palm Beach County. Investments may include various U.S. Treasury and U.S. Agency obligations (including specific mortgage-backed securities), highly rated corporate debt, and money market funds. As of September 30, 2009, the portfolio managed by the Clerk & Comptroller had an overall book yield of 4.42 percent, which is above the 1.80 percent benchmark (24 month moving average of the 2 year Constant Maturity Treasury index) set by the Investment Policy Committee. With investments averaging $1.9 billion, the Clerk & Comptroller‟s office generated approximately $85.8 million in interest income in FY 2009. Investment income, which includes realized and unrealized gains and losses, totaled approximately $145 million. The following chart summarizes the County‟s investments, including cash and cash equivalents, at September 30, 2009: Palm Beach County, Florida Investments by Asset Class * September 30, 2009 Small Business Administration (SBA) 13% Other 2% Money Market 5% Corporates Federal Agency 12% 3% Mortgage-backed Securities 65% * Note: This chart reflects only those investments managed by the Clerk & Comptroller and, therefore, will not agree with amounts reported in the notes to the financial statements. vi On September 30, 2009, Standard & Poor‟s issued the highest credit and volatility rating categories to the Clerk & Comptroller-managed Palm Beach County investment portfolio. The portfolio received an „AAAf‟ Fund Credit Quality Rating – indicating the portfolio has “extremely strong” protection against credit losses. It also received a „S1‟ Volatility Rating – meaning it has low sensitivity to changing market conditions. Long-Term Debt Management - The County continues to obtain long-term financing for the construction or acquisition of various long-term assets. It is management‟s objective to adequately plan and meet the County‟s comprehensive construction demands for essential capital improvements and equipment, and at the same time, ensure that the residents of the community are not overburdened with general obligation long-term debt payable from ad valorem taxes. The County‟s debt service millage for 2009 for all Countywide bonded indebtedness is 0.1845. The following table indicates the principal amortization of the County‟s general obligation debt in five-year increments: General Obligation Debt Principal Amortization In Five Year Increments Following Fiscal Year 2009 Fiscal Year 2014 2019 2024 2029 Total Principal Amortization $103,125,000 103,445,000 53,065,000 10,515,000 $270,150,000 Enterprise Operations - The County operates the following three enterprise funds: the Department of Airports, the Water Utilities Department, and the Solid Waste Authority. The Department of Airports operates four County-owned airports: Palm Beach International Airport located in West Palm Beach, and three general aviation airports located in Palm Beach Gardens, Lantana, and Pahokee. The Water Utilities Department provides potable water, wastewater, and reclaimed water services to approximately 512,000 people located within approximately 1,200 square miles of the rapidly urbanizing, primarily unincorporated area of the County. In addition to serving unincorporated areas, the Department provides services directly to the residents and businesses of the Village of Royal Palm Beach, the City of Greenacres and the Town of Haverhill. The Solid Waste Authority constructs and operates solid waste disposal facilities sufficient to effectively manage all solid waste generated in the County. The Solid Waste Authority operated one active landfill site for the year ended September 30, 2009. In addition, the Solid Waste Authority is responsible for two landfill sites closed after 1991 and three landfill sites closed prior to 1991. vii Risk Management - The County is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors and omissions, and natural disasters. The County is essentially self-insured for this coverage, but also maintains commercial insurance to provide specific excess coverage for property losses and aggregate excess coverage for all losses. The County also purchases excess claim bill liability coverage to protect against exposures related to Florida tort liability claims. The County has self-funded its workers‟ compensation exposure since 1969. This fund covers all employees of the Board of County Commissioners and all Constitutional Officers with the exception of the Sheriff‟s office which administers its own program. The County provides health insurance for its employees and eligible dependents. With the exception of the Constitutional Officers who have separately contracted for health insurance coverage, all funds of the County participate in the program. Retirement System - The County participates in the Florida Retirement System, a public employee retirement system administered by the State of Florida. The plan is a multipleemployer cost sharing defined benefit plan which covers almost all officers and regular employees. Employees make no contributions to the plan. The County‟s contribution to the system for FY 2009 was approximately $99.7 million, which was equal to the required contributions for the year. AWARDS AND ACKNOWLEDGMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Palm Beach County, Florida, for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2008. This was the 20th consecutive year that the government achieved 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 must satisfy both accounting principles generally accepted in the United States 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‟s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The GFOA has also given an Award for Outstanding Achievement in Popular Annual Financial Reporting to Palm Beach County, Florida, for its Popular Annual Financial Report (PAFR) for the fiscal year ended September 30, 2008. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. Palm Beach County has received a Popular Award for the last three consecutive years. In addition, Palm Beach County also received the GFOA's Award for Distinguished Budget Presentation for its annual adopted budget for the fiscal year beginning October 1, 2008. This viii was the 23rd time that Palm Beach County received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the budget document was judged to be proficient in several categories including policy documentation, financial planning and organization. The preparation of this Comprehensive Annual Financial Report on a timely basis was made possible by the dedicated services of the entire Clerk & Comptroller Finance Department with special acknowledgment to the Accounting and Financial Reporting staff. Our appreciation is also extended to the Board of County Commissioners, Constitutional Officers, County Administrator, Office of Financial Management and Budget and their respective staffs, as well as our external auditors McGladrey & Pullen LLP for making preparation of this report possible. Respectfully submitted, SHARON R. BOCK, Esq. Clerk & Comptroller Palm Beach County, Florida ix Financial Section The Financial Section includes the Independent Auditor’s Report, management’s discussion and analysis, basic financial statements, required supplementary information, and combining and individual fund statements and schedules. Independent Auditor’s Report Honorable Chair and Members of the Board of County Commissioners Palm Beach County, Florida Honorable Sharon R. Bock Clerk and Comptroller Honorable Gary R. Nikolits Property Appraiser Honorable Ric L. Bradshaw Sheriff Honorable Susan Bucher Supervisor of Elections Honorable Anne Gannon Tax Collector We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Palm Beach County, Florida (the “County”), as of and for the year ended September 30, 2009, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Solid Waste Authority, a major enterprise fund, which represents 40% of the total assets and 48% of total revenues of the business-type activities. We did not audit the financial statements of the Westgate Belvedere Homes Community Redevelopment Agency, a discretely presented component unit, which represents 45% of the total assets and 39% of total revenues of the aggregate discretely presented component units. We also did not audit the financial statements of the Housing Finance Authority, a discretely presented component unit, which represents 52% of the total assets and 29% of the total revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Solid Waste Authority, Westgate Belvedere Homes Community Redevelopment Agency, and Housing Finance Authority, is based on the reports of the other auditors. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the reports of other auditors provide a reasonable basis for our opinions. McGladrey & Pullen, LLP is a member firm of RSM International, an affiliation of separate and independent legal entities. xiii In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the businesstype activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of Palm Beach County, Florida, as of September 30, 2009, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 18, the County contributed a major capital asset from the Utilities fund to another government on October 1, 2009 in the amount of $55.4 million. In accordance with Government Auditing Standards, we have also issued, under separate cover, our report dated March 22, 2010 on our consideration of the County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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 results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The Management’s Discussion and Analysis, the Budgetary Comparison Schedules – General Fund, Fire Rescue Special Revenue Fund and Sheriff Special Revenue Fund, and the schedules of funding progress as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections, have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. West Palm Beach, Florida March 22, 2010 xiv M a n a g e m e n t ’ s D i s c u s s i o n & A n a ly s i s The Management’s Discussion and Analysis subsection provides a narrative introduction to and overview and analysis of the basic financial statements. It includes a description of the government-wide and fund financial statements, as well as an analysis of Palm Beach County’s overall financial position and results of operations. Management’s Discussion and Analysis Our discussion and analysis provides an overview of the financial activities of Palm Beach County, Florida (the “County”) for the fiscal year ended September 30, 2009. We encourage reading this narrative in conjunction with the additional information provided in the transmittal letter (beginning on page i) and the accompanying financial statements (beginning on page 2). Financial Highlights  The County’s assets exceeded its liabilities (net assets) by approximately $4.032 billion and $3.946 billion at the close of fiscal years 2009 and 2008, respectively. Of these amounts, $2.676 billion and $2.482 billion were invested in capital assets, net of related debt. In addition, $893 million and $803 million were restricted by law, grant agreements, debt covenants, or for capital projects. As a result, $463 million and $661 million were available at year-end to meet the County’s ongoing obligations to residents, creditors, and enterprise fund customers. During the year, the County’s net assets increased $86 million, compared to an increase of $101 million during the previous fiscal year. This fiscal year, approximately $86 million of the increase was from business-type activities, with no change in net assets in governmental activities. At September 30, 2009, the County’s governmental funds reported a combined ending fund balance of $1.424 billion, a decrease of $92.2 million or 6.1% from the previous year. At September 30, 2009, the unreserved fund balance for the General Fund was $178.8 million and the total fund balance was $180.9 million which is a decrease of $39.5 million or 17.9% from the previous year. The County’s three enterprise funds, the Department of Airports, the Water Utilities Department, and the Solid Waste Authority had increases in net assets of $17.8 million, $18.3 million and $50.0 million, respectively, over the previous year. The County’s total liabilities at September 30, 2009 and 2008 were $2.881 billion and $2.435 billion, respectively.      xv Overview of the Financial Statements This CAFR consists of the Basic Financial Statements and other statements. The County’s basic financial statements contain three components: government-wide financial statements, fund financial statements, and notes to the financial statements. Minimum Financial Reporting Requirements Information Type RSI Required Financial Information Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Fund Financial Statements Basic Financial Statements Notes to the Financial Statements RSI RSI (other than MD&A) Government-wide Financial Statements The government-wide financial statements provide an overview of the County’s financial position using the accrual basis of accounting, which is similar to the accounting used by privatesector businesses. The statement of net assets presents information on the assets and liabilities of the County as a whole. The difference between assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information showing how the County’s net assets changed during the fiscal year. Changes in net assets are reported as soon as the underlying economic transactions occur, regardless of when cash is received or paid. Therefore, some of the revenues or expenses reported in the statement of activities will have cash flows in future fiscal periods. For example, certain sales taxes are shown as revenues although cash receipts will occur early in the following fiscal year. An increase in unused vacation leave is recorded as an expense although related cash outflows will occur in the future. The government-wide financial statements show a distinction between activities that are supported primarily by taxes and intergovernmental revenues (governmental activities) and xvi activities that are supported by the recovery of 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 functions. The business-type activities of the County are the Department of Airports, the Water Utilities Department, and the Solid Waste Authority. The government-wide financial statements include not only the County itself (known as the primary government), but also the legally separate entities for which the County is financially accountable (known as component units). The discretely presented component units of the County are the Metropolitan Planning Organization, the Housing Finance Authority of Palm Beach County, and the Westgate/Belvedere Homes Community Redevelopment Agency. The financial activity of these component units is reported separately from the financial information of the primary government. To obtain the separately issued financial statements of the discretely presented component units, see Note 1 – Summary of Significant Accounting Policies, in the Notes to the Financial Statements for contact information. 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 uses fund accounting to ensure and demonstrate compliance with legal, legislative, contractual, and other finance-related provisions. All of the County’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds Most of the County’s basic services are reported in governmental funds, which focus on how money or other spendable resources flow into and out of those funds and on the level of balances remaining at year-end that are available for expenditure. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the County’s general governmental operations to help control current financial resources and demonstrate fiscal accountability. Governmental fund information helps determine the extent of financial resources that are available for expenditure on County programs. Reconciliations of the differences between the government-wide and fund financial statements are provided immediately after the Balance Sheet-Governmental Funds and Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds, respectively, in the Basic Financial Statements. Funds that are significant in terms of revenues, expenditures, assets or liabilities are identified as major funds in the Basic Financial Statements and reported separately. Budget and actual comparison schedules are also presented as Required Supplementary Information for the General Fund and each major special revenue fund with an annually adopted budget. The County’s nonmajor funds, and budget and actual comparisons schedules for any nonmajor funds with xvii annually appropriated budgets, are presented in the Combining and Individual Fund Statements and Schedules section of this report. Proprietary funds The County uses both types of proprietary funds, Enterprise and Internal Service Funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its Airports, Water Utilities, and Solid Waste operations. All three of these operations are considered to be major proprietary funds of the County. Internal Service funds are used to accumulate and allocate costs internally among the County’s other functions. The County uses internal service funds to account for its Fleet Management, Risk Management and Information System Services programs. These programs are included within governmental activities in the government-wide financial statements because they predominantly benefit governmental rather than business-type functions. The four internal service funds are combined into a single presentation in the proprietary fund financial statements. Individual fund data for the internal service funds are provided in the Combining and Individual Fund Statements and Schedules section of this report. The proprietary fund financial statements can be found in the Basic Financial Statements. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Agency funds are the only type of fiduciary fund used by the County. The amounts in these agency funds are not included in the government-wide financial statements because the resources of these funds are not available to support the County’s own programs. However, the Statement of Fiduciary Net Assets – Agency Funds in the Basic Financial Statements is provided for information on the agency funds. In addition, the individual agency funds are presented in the Combining and Individual Fund Statements and Schedules section of this report. Notes to the financial statements The notes provide additional information that is essential for a more complete understanding of the data provided in the government-wide and fund financial statements. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information containing budget to actual comparisons for the General Fund and major special revenue funds. The combining statements for the nonmajor funds, internal service funds, agency funds, as well as individual fund budget and actual comparison schedules are found in the Combining and Individual Fund Statements and Schedules section of this report. xviii Government-wide Financial Analysis Over time, net assets may serve as the most useful indicator of a government’s financial position. At September 30, 2009 and 2008, the County’s total net assets, or total assets less liabilities, were $4.032 billion and $3.946 billion, respectively. A significant portion of the County’s net assets, $2.676 billion or 66.4%, is identified as an investment in capital assets (such as land, buildings, equipment, infrastructure), less related debt outstanding that was used to acquire those assets. Since the County uses capital assets to provide services to its residents, the net assets represented by “invested in capital assets, net of related debt” are not available for future spending. In fact, the payment of maintenance and debt service costs on those capital assets will themselves require governmental resources. Another portion of the County’s net assets is restricted net assets which represent assets that are subject to constraints such as by debt covenants, grantors, laws or regulations. Unrestricted net assets are net assets that are available to meet the County’s ongoing obligations to residents, creditors, and enterprise fund customers. As shown on the following chart, the County reported positive balances at September 30, 2009 and 2008, in all three categories of net assets, for governmental activities, business-type activities, as well as the County as a whole. Palm Beach County, Florida Net Assets at Year-End (in millions) Governmental Activities 2009 2008 Assets Current and other assets Capital assets Total assets Liabilities Current Long-term debt due in more than one year Total liabilities Net Assets Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 1,735 $ 2,342 4,077 Business-type Activities 2009 2008 1,017 $ 1,819 2,836 576 $ 1,744 2,320 TOTAL PRIMARY GOVERNMENT 2009 2008 2,752 $ 4,161 6,913 2,413 3,968 6,381 1,837 $ 2,224 4,061 303 1,388 1,691 305 1,370 1,675 179 1,011 1,190 128 632 760 482 2,399 2,881 433 2,002 2,435 $ 1,380 791 215 2,386 $ 1,260 721 405 2,386 $ 1,296 102 248 1,646 $ 1,222 82 256 1,560 $ 2,676 893 463 4,032 $ 2,482 803 661 3,946 xix Governmental activities Significant changes in the Statement of Net Assets are as follows: Current and other assets for Governmental activities decreased by $102 million. Much of the change can be attributed to acquisitions of Capital Assets. Capital assets for Governmental activities increased by $118 million. Refer to the subsequent section on Capital assets for additional detail. The increase in long-term debt for Governmental activities of $18 million consists primarily of issuing bonds for $43 million for Max Planck and a $16 million Bond Anticipation Note for the Four Points and other Public Building Projects, offset by current bond payments. Governmental activities resulted in zero net change in the County’s net assets during fiscal year 2009, as compared with the previous fiscal year increase of $4 million. This year’s zero net change in net assets from governmental activities is attributed to significant decreases in two revenue categories: A decrease in property values resulted in less ad valorem tax revenue for the year. The assessed value of taxable property located in the county (after exemptions) fell from $136.4 billion in 2008 to $118.4 billion in 2009. This represented a decrease of $18.0 billion or 13.2%. Gross property taxes levied for fiscal year 2009 fell from $931.8 million in 2008 to $890.9 million for 2009, a decrease of $40.9 million or 4.4%. Other local tax revenues decreased approximately $8 million or 7.6% from the previous fiscal year due primarily to a sluggish economy throughout the year. Additional factors impacting governmental activities during fiscal year 2009 are described below. Ad valorem tax revenue decreased by $42 million or 4.7% from the previous fiscal year. The decrease was primarily attributable to a decrease in taxable values. Public Safety expenses increased $58 million or 8.4% from the previous fiscal year. The increase was primarily due to increased operating costs of the Sheriff’s Office. Physical environment expenses increased $5 million or 19.2% from the previous fiscal year due in part to increased activity related to the Scripps/FAU agreement. Transportation expenses decreased $5 million or 3% from the previous fiscal year. The decrease was primarily due to lower fuel and operating costs during the year. Economic Environment expenses decreased $115 million or 54% from the previous fiscal year. The decrease was primarily due to higher costs recorded in FY08 related to the funding of the Scripps Research Institute for their permanent facilities and an impairment loss. xx Interest expense increased $7 million or 14% from the previous fiscal year. The increase was primarily due to a full year of interest paid on non ad-valorem revenue bonds issued in the previous fiscal year, as well as on two new issues of non ad-valorem revenue bonds issued in FY09. The County’s governmental activities had net expenses of $1.259 billion. However, these services are intended to be primarily funded by taxes and other general revenues as opposed to charges for service and grants. Total revenues (both program and general revenues) were less than total expenses by $1 million. REVENUES BY SOURCE Governmental Activities Fiscal Years 2008 and 2009 (Amounts in millions) $1,000 $800 $600 $400 $200 $0 FY 2008 FY 2009 Business-type activities The County’s business-type activities had total revenues of $487 million and had total revenues in excess of total expenses of $87 million. Refer to the Proprietary funds section of Financial Analysis of the Government’s Funds which follows for more information on the County’s business-type activities. The significant change in the business-type activities Statement of Net Assets was due to Current and other assets, which increased $441 million during fiscal year 2009. This can be attributed in part to strong growth in charges for services which increased 11.3% from the prior year. xxi Governmental Activities 2009 2008 Revenues Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions Business-type Activities 2009 2008 TOTAL PRIMARY GOVERNMENT 2009 2008 $ 273 124 19 416 $ 280 132 41 453 $ 433 14 40 487 $ 389 19 59 467 $ 706 138 59 903 $ 669 151 100 920 General Revenues: Ad valorem taxes Other local taxes State shared revenues Franchise fees Investment income Other Total revenues Expenses General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest expense Department of Airports Water Utilities Department Solid Waste Authority Total expenses Excess Transfers In (Out) Change in net assets Beginning net assets Ending net assets 856 97 127 34 135 9 1,674 898 105 132 30 87 6 1,711 487 467 856 97 127 34 135 9 2,161 898 105 132 30 87 6 2,178 361 746 31 159 98 103 120 57 351 688 26 164 213 101 124 50 78 139 183 400 87 (1) 86 1,560 1,646 $ 71 128 161 360 107 (10) 97 1,463 1,560 $ 1,675 (1) 1 2,386 2,386 $ 1,717 (6) 10 4 2,382 2,386 $ 361 746 31 159 98 103 120 57 78 139 183 2,075 86 86 3,946 4,032 $ 351 688 26 164 213 101 124 50 71 128 161 2,077 101 101 3,845 3,946 $ Financial Analysis of the Government’s Funds As mentioned earlier, the County uses fund accounting to ensure and demonstrate compliance with legal, legislative, contractual, and other finance-related provisions. xxii Governmental funds. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in determining the County’s financing resources. Unreserved fund balance, in particular, is a useful measure of a government’s net resources available for spending at the end of a fiscal year. Changes in Fund Balance – Governmental Funds • The decrease in the General Fund’s fund balance of $39.5 million is attributable to the use of reserves to fund FY 2009 operations. GENERAL  FUND BALANCE HISTORY Fiscal Years 2002 ‐ 2009 (Amounts in millions) $300  $250  $200  $150  $100  $50  $0  2002 2003 2004* 2005 2006 2007 2008 2009 $179 $184 $150 $185 $222 $243 $221 $181 * Decrease due to reclassification of certain funds from the General Fund. • The increase in the Fire Rescue Special Revenue Fund of $20.4 million is attributable to building up reserves to offset future operating needs by $9.5 million. In addition, $10.5 million is attributable to personnel savings due to vacancies, union negotiations in pay increases and a decrease in overtime. The decrease of $20 million in the Road Program Capital Projects Fund is due to the spending of County capital projects. • xxiii In FY 2009, $17.7 million in ad valorem equivalent funding was provided for capital projects, including street drainage improvements, new computer technology, and facility renovations. Designated for fiscal year 2010 0.3% Designated for encumbrances 0.6% Reserved for inventory 1.1% Designated for contingencies 11.1% GENERAL FUND Fund Balance September 30, 2009 Total $181 million Unreserved, undesignated 86.9% At September 30, 2009, the County’s governmental funds reported combined ending fund balances of $1.424 billion, a decrease of $92.2 million from the previous year. This decrease was the result of a combination of the $20.0 million decrease in the ending fund balance of the Road Program Capital Projects Fund; a decrease in the General Fund of $39.5 million; an increase in the Fire Rescue Special Revenue Fund of $20.4 million; an increase in the Sheriff Special Revenue Fund of $1.2 million; an increase in the General Government Capital Projects Fund of $30.2 million and a decrease in Other Governmental Funds of $84.5 million. xxiv EXPENDITURES BY FUNCTION Governmental Activities Fiscal Years 2008 and 2009 (Amounts in millions) $800 $700 $600 $500 $400 $300 $200 $100 $0 FY 2008 FY 2009 Proprietary funds. The proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Financial highlights of each of the County’s enterprise funds are as follows: Department of Airports:  Operating revenues decreased by 2%, dropping from $64.4 million to $63.3 million. The major component was a decrease in parking revenues of $1.7 million due to decreased parking transactions caused by declining passenger traffic. Landing Fee revenue increased $884,000 due to increased landing fee rates and a newly implemented General Aviation Landing Fee at PBIA. The General Aviation landing fee generated $690,000 in fiscal year 2009.  Operating expenses (excluding depreciation and amortization) increased by 2%, increasing $869,000 to $45.6 million in fiscal year 2009. Utility costs increased 7%, or $315,000, due to usage and rate increases. Security costs increased 5%, or $400,000 due to increased cost of the primary service provider, the Palm Beach County Sheriff’s office.  2009 Operating income after depreciation was a loss of $6.5 million compared to a loss of $2.6 million in 2008. This was due to decreased revenues and increased expenses as discussed above plus an increase in depreciation and amortization expense of $1.9 million over the prior year. xxv Water Utilities Department:  The Department’s net assets increased by $18.3 million, or 2.0%, during the year.  Long-term debt (net of the current portion) increased by $55.0 million, or 32.2%, during the year.  Operating revenues in fiscal year 2009 totaled $130.2 million, a 12.9% increase. Fiscal year 2009 also included the effect of rate indexing, a full year of operating the Lake Region Water Treatment Plant and a 0.4% increase in the customer base.  Operating expenses before depreciation and amortization and equity interest in net loss of joint venture totaled $89.2 million, an increase of $7.3 million or 8.9%.  Non-operating income increased by $1.4 million, or 140% in fiscal year 2009.  The Department showed net income before contributions of $0.3 million for fiscal year 2009, an increase of 107.5% from fiscal year 2008’s net loss before contributions of $4.0 million. Solid Waste Authority:  The Authority’s assets exceeded its liabilities (net assets) by approximately $383.1 million at the close of fiscal year 2009. Of this amount, approximately $72.0 million is considered unrestricted and pursuant to the Authority’s trust indenture is available for renewal and replacement of the solid waste system and capital improvements.  The Authority’s revenues and capital contributions exceeded expenses by approximately $50.0 million for fiscal year 2009.  The Authority has continued its aggressive capital renewal and expansion program. This program includes the complete renovation of the Authority’s waste-to-energy facility, the relocation and expansion of the materials recovery facility, preliminary steps toward the construction of a renewable energy facility and the possible site acquisition and development of a new landfill. In fiscal year 2009, the Authority’s net capital assets increased by approximately 18.3%. This capital expansion is expected to continue over the next several years.  On November 25, 2008 the Authority issued $131,565,000 of revenue bonds to fund the costs associated with future landfill development and the construction of a new transfer station in the southwest area of the County.  On April 23, 2009 the Authority issued $261,545,000 in revenue bonds to fund the costs associated with the refurbishment of the Authority’s waste-to-energy facility and the preliminary costs associated with the proposed 3,000 tons per day renewable energy facility. xxvi  The Authority’s operating revenue increased from the prior year by approximately 13.5% and operating expenses increased by approximately 11.5%. Non-operating income, however, declined significantly as a result of lower investment earnings in fiscal year 2009 which was offset somewhat from miscellaneous income from the sale of a parcel of land. The Authority’s debt service coverage for fiscal year 2009 remained strong at 162% of debt service requirements. Budgetary Highlights Budget and actual comparison schedules are provided as Required Supplementary Information for the General Fund and all major special revenue funds with annually appropriated budgets. Budget and actual comparison schedules are also provided in the Combining and Individual Fund Statements and Schedules section for all nonmajor funds with annually appropriated budgets. The budget and actual comparison statements and schedules show the original adopted budget, the final revised budget, actual results and a variance between the final budget and actual results. There were no funds with total actual expenditures in excess of the final revised budget. After the original budget is approved, it may be revised for a variety of reasons such as unforeseen circumstances, corrections or errors, new bond or loan proceeds, new grant awards and other revenues. During fiscal year 2009, supplemental appropriations to the Board of County Commissioners’ budget excluding component units, were approximately $612.3 million, or approximately 15.3% of the original adopted budget. Differences between the original budget for fiscal year 2009 and the final amended budget for the General Fund can be summarized as follows: On April 21, 2009, the Board amended the budget to reflect the “true up” of the original budgeted beginning fund balance to the actual fund balance, which accounts for a $17.5 million adjustment to the reserves for balances forward in the General Government budget, a $3.4 million adjustment to transfers out to the County Transportation Trust fund, and the remaining $2 million for transfers to various Special Revenue and Capital Project funds and general government expenses. The revenue budget was amended to reduce franchise fee and communication service tax budgets per revised state projections by $5 million. During the year, the Palm Beach County Sheriff’s Office entered into a contract with the City of Lake Worth to provide police services. As such, the budget was amended for approximately $14 million in charges for services and $14 million in transfers out to the Sheriff Department. During the year, the Board amended various budget amendments that were not significant in nature. xxvii Budget to Actual Expenditures General Fund budgeted reserves had a balance at year-end of $105 million, which represents 85% of the total unexpended appropriations in the fund. These unexpended funds will be carried over into FY 2010 and will be reappropriated. The Tax Collector and Property Appraiser returned/under spent approximately $5 million. The remaining unspent funds can be attributed to County departments spending less than budgeted. Budget to Actual Revenues Ad valorem tax collections were 96% of budget, in line with the historical collection rate. Florida Statutes require revenues to be budgeted at 95% of reasonably anticipated receipts. Palm Beach County budgets a negative 5% statutory reserve to accomplish this. Allowing for the reserve, ad valorem taxes were actually over collected by $6 million. In FY 09, the County entered into a new franchise agreement with FPL where the franchise fee decreased from 6% to 5.9% while changing the method of calculation by eliminating the consideration given for taxes FPL pays to the County and other taxing authorities. Under the prior agreement’s method of calculation, the effective rate was 4.2%. As such, there is an increase in franchise fee revenues of $5.9 million. Intergovernmental revenues decreased approximately $3.2 million compared to budget, this is attributed to the decline in economy and receipts coming in below the State’s projections. Investment income exceeded the budget by $10.8 million or 76.6%, which is attributable to a gain in the fair value change of 3.1% and interest earnings of 4.5% for a total of 7.6%, which is greater than the modest budget of 3%. Budget to Actual – Other financing sources Actual excess fees (transfers in) received from the Sheriff and the Supervisor of Elections amounted to $18 million, of which no amount was budgeted. The Clerk & Comptroller returned $1.5 million less in excess fees than was budgeted. In addition, a fund was established for recognizing utility tax-electricity revenues and restricting its use pending a legal decision. During FY 2009, the legal issue was resolved and the fund has been closed and the residual balance has been transferred to the general fund. This accounts for transfers in of $14 million over the budget. xxviii Capital Assets and Debt Administration Capital assets. The County’s investment in capital assets for its governmental and business-type activities as of September 30, 2009, amounts to $4.161 billion (net of accumulated depreciation). This investment in capital assets includes a broad range of capital assets, including land, buildings and improvements, improvements other than buildings, equipment, infrastructure, and construction in progress. The total increase in the County’s capital assets for fiscal year 2009 was 4.9% (a 5.3% increase for governmental activities and a 4.3% increase for business-type activities). Palm Beach County, Florida Capital Assets, net of Accumulated Depreciation at Year-End (in millions) TOTAL PRIMARY Governmental Activities Business-type Activities GOVERNMENT 2009 2008 2009 2008 2009 2008 Primary Government: Land Buildings & improvements Improvements other than buildings $ Equipment Infrastructure Intangible - easement rights Leasehold interest Goodwill Construction in progress TOTALS $ 741 $ 541 130 197 288 445 2,342 $ 738 $ 561 138 188 268 331 2,224 $ 162 $ 459 906 126 13 8 6 139 1,819 $ 162 $ 405 904 101 13 9 7 143 1,744 $ 903 $ 1,000 1,036 323 288 13 8 6 584 4,161 $ 900 966 1,042 289 268 13 9 7 474 3,968 Major capital asset events during the fiscal year include the following:  Several large capital expenditures made during fiscal year 2009 include $31.3 million for the Jail Expansion Project, $6.5 million for Okeechobee Boulevard improvements east of Jog Road and the Turnpike, $4.9 million for the Royal Palm Beach library expansion, and $2.7 million for the Winding Waters Natural Area. Various substantially completed projects during fiscal year 2009 include intersection improvements at Jog and Glades/Clintmore Roads for $2.9 million, Stacy Street improvements for $1.0 million and El Paso & Yearling Drives Street Improvements for $1.2 million. Governmental activities Net Capital assets increased overall by $118 million due to $3 million in land acquisitions, a decrease of $28 million in buildings and other improvements, $9 million for equipment, $20 million for infrastructure, and $114 million added to Construction in progress. Business-type activities Net Capital assets increased overall by $75 million, or 4.3% to $1.819 billion.    xxix  Major capital asset additions by the Water Utilities Department included the construction of the Florida Power and Light reclaimed water system for $52.8 million, construction of odor control and other plant improvements to the Southern Region Water Reclamation Facility for $8.1 million and improvements to the treatment process at Water Treatment Plant #2 for $5.6 million. During fiscal year 2009, the Solid Waste Authority’s capital assets increased approximately $89.7 million, which included approximately $43.1 million for equipment, $31.8 million for construction costs associated with the refurbishment of the waste-toenergy facility, $6.7 million for costs associated with the construction of the central county transfer station and $5.9 million for costs associated with the construction of the southwest county transfer station. Additionally, completed projects of approximately $55.0 million were closed from construction-in-progress to their respective capital accounts and interest expense of approximately $10.3 million was capitalized. The Department of Airports expended $22.9 million on capital activities. Completed projects during 2009 totaling $36.1 million were transferred from construction-inprogress to their respective capital accounts. The major project during fiscal year 2009 was completion of the Concourse C expansion adding three passenger loading areas and additional space for terminal concessions which was opened in June of 2009.   Equipment Infrastructure 7.8% 6.9% Construction in progress 14.0% CAPITAL ASSETS, NET Total Primary Government September 30, 2009 Other 0.6% Land 21.7% Improvements other than buildings 25.0% Buildings & improvements 24.0% See Note 4, Capital Assets, in the Notes to the Financial Statements for additional information. Long-term liabilities. At September 30, 2009, the primary government had 50 issues of bonded debt totaling $2.172 billion. Of this amount, $273 million comprises debt backed by the full faith and credit of the government, $942 million is special obligation debt secured by dedicated revenue sources and $957 million is secured by specified enterprise revenue sources. See chart below for more information. xxx Palm Beach County, Florida Long-Term Liabilities at Year-End (in millions) Governmental Activities 2009 2008 General obligation bonds Non-ad valorem revenue bonds Revenue bonds Notes and loans payable Other obligations TOTALS $ 273 $ 942 41 256 1,512 $ Business-type Activities 2009 2008 - $ 957 76 77 1,110 $ - $ 542 80 69 691 $ TOTAL PRIMARY GOVERNMENT 2009 2008 273 942 957 117 333 2,622 $ 293 899 542 156 281 2,171 $ 293 $ 899 76 212 1,480 $ $ Bonded Debt. The County’s bond issues are rated by three primary bond rating agencies; Moody’s Investors Service, Standard and Poor’s and Fitch Ratings. These ratings, which are listed in the following chart, are indicative of the County’s strong management team, broadbased economy, continually well-performing tax base, increasingly strong financial position, minimal debt requirements and high quality residential tax base. At September 30, 2009, the County’s non-ad valorem revenues were 3.95 times the debt service required in the current or any future fiscal year. Type of Debt Issue General obligation bonds Non-ad valorem revenue bonds Pooled financing loans Water and Sewer System Enterprise revenue bonds Water and Wastewater System Enterprise revenue bonds Airport System Enterprise revenue bonds Solid Waste Authority Moody's Aaa Aa1 Aa1 Aaa Aaa A2 Aa3 Fitch Ratings AAA AA+ AAA AAA A - S&P AAA AA+ AAA AAA A AA Note: Highest rating: AAA/Aaa Investment grade ratings: AAA/Aaa through BBB/Baa, Lowest Rating: C xxxi LONG-TERM LIABILITIES Total Primary Government September 30, 2009 General obligation bonds 10.4% Other obligations 12.7% Notes and loans payable 4.5% Revenue bonds 36.5% Non-ad valorem revenue bonds 35.9% See Note 15, Long-Term Debt, in the Notes to the Financial Statements for additional information. Economic Factors Local, national, and international economic factors influence the County’s revenues in a variety of ways. Positive economic growth is correlated with increased revenues from property taxes, sales taxes, fuel taxes, charges for services, state revenue sharing as well as state and federal grants. Economic growth may be measured by a variety of indicators such as employment growth, unemployment, new construction and assessed values, diversification of the property tax base, and Enterprise Fund revenue and net asset growth.   For the second year in a row, the County’s population decreased. Population in 2009 was 1,287,344 compared with 1,294,654 in 2008. The civilian labor force for Palm Beach County decreased from 655,669 at September 2008 to 626,400 at September 2009, a decrease of less than 1%. The County’s unemployment rate increased to 11.7% at September 2009 compared to 7.3% at September 2008. The assessed value of taxable property located in the County (after exemptions) decreased from $136.4 billion in 2008 to $118.4 billion in 2009. This represented a decrease of $18.0 billion or 13.2%. Palm Beach County has a diversified property tax base. The ten largest property taxpayers in the County represent 9.1% of the total ad valorem property taxes levied. Gross property taxes levied for fiscal year 2009 fell from $931.8 million in 2008 to $890.9 million for 2009, a decrease of $40.9 million or 4.4%. xxxii     Building permits issued in Palm Beach County for both single family and multi-family units fell from 348 in the third quarter of 2008 to 338 during the same period in 2009, a decrease of 2.9%. Foreclosure filings in Palm Beach County rose from 25,986 during FY 2008 to 31,178 during FY 2009, an increase of 20%.  More information on economic factors is provided in the Statistical Section. To Obtain Further Information This financial report was designed to provide an overview of the County’s finances. If you have any questions concerning budgets, long-term financial planning, future debt issuances, or questions related to the management of County operations, please contact the County Administrator at: County Administrator 301 North Olive Avenue, 11th Floor West Palm Beach, FL 33401 If you have any questions concerning the Basic Financial Statements or other accounting information in this report, please contact the Financial Reporting Manager at: Clerk & Comptroller, Palm Beach County Finance Department 301 North Olive Avenue, 2nd Floor West Palm Beach, FL 33401 xxxiii B a s i c F i n a n c i a l S tat e m e n t s The Basic Financial Statements subsection includes the government-wide financial statements, which incorporate governmental and business type activities of Palm Beach County and activities of component units in order to provide an overview of the financial position and results of operation for the reporting entity. This subsection also includes the fund financial statements of the County and the accompanying notes to the financial statements. 1 PALM BEACH COUNTY, FLORIDA Statement of Net Assets September 30, 2009 Primary Government Governmental Activities ASSETS Cash and cash equivalents (note 2) Investments Interest receivable Accounts receivable - net Internal Balances Due from primary government Due from other governments Due from component units Inventory Other assets Other receivable - noncurrent Investment in joint venture Deferred issue costs Capital assets (note 4) Non-depreciable capital assets Depreciable capital assets, net Total assets LIABILITIES Vouchers payable and accruals Due to primary government Due to other governments Due to component units Due to individuals Accrued interest payable Unearned revenue Other current liabilities Long-term liabilities (note 15) Long-term liabilities due within one year Long-term liabilities due more than one year Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt service Capital projects School district impact fee land acquisition Library taxing district Fire rescue taxing district Tourist development tax programs Grants and other Unrestricted (deficit) Total net assets $ 1,379,604,426 31,358,391 443,851,797 1,694,998 44,375,091 143,355,446 18,465,150 108,115,628 215,300,661 2,386,121,588 $ 103,910,060 20,976,074 6,298,949 437,329 19,416,392 18,079,157 9,730,659 124,503,308 1,387,968,210 1,691,320,138 $ 1,623,770,667 276,612 22,930,929 (5,043,821) 44,093,456 11,424 14,794,044 6,569,344 17,588,262 10,325,788 1,185,742,072 1,156,382,949 4,077,441,726 $ Business-Type Activities Total 889,770,596 1,057,966 1,012,093 26,748,196 5,043,821 5,324,709 15,777,142 2,947,442 18,953,939 35,119,164 14,876,641 300,563,834 1,518,536,521 2,835,732,064 $ 2,513,541,263 1,057,966 1,288,705 49,679,125 49,418,165 11,424 30,571,186 9,516,786 36,542,201 35,119,164 25,202,429 1,486,305,906 2,674,919,470 6,913,173,790 46,000,317 7,009,339 5,269,530 20,642,656 562,353 448,000 98,765,722 1,010,756,357 1,189,454,274 149,910,377 27,985,413 6,298,949 5,706,859 40,059,048 18,641,510 10,178,659 223,269,030 2,398,724,567 2,880,774,412 1,295,978,868 22,701,487 52,456,491 27,353,982 247,786,962 1,646,277,790 $ 2,675,583,294 54,059,878 496,308,288 1,694,998 44,375,091 143,355,446 18,465,150 135,469,610 463,087,623 4,032,399,378 The notes to the financial statements are an integral part of this statement. 2 Component Units Metropolitan Planning Organization Housing Finance Authority Westgate/ Belvedere Homes Community Redevelopment Agency $ 100 265,095 345,013 610,208 $ 1,930,998 2,071,350 10,255 6,033,854 25,637 53,396 10,125,490 $ 1,342,917 404,720 3,243,981 89,570 3,451,275 321,822 8,854,285 75,295 5,483 345,013 11,680 163,606 601,077 155,463 185,000 340,463 86,731 5,941 3,500 1,114,128 3,527,145 4,737,445 9,131 $ 9,131 $ 52,231 9,732,796 9,785,027 $ 3,513,097 326,165 539,122 (261,544) 4,116,840 3 PALM BEACH COUNTY, FLORIDA Statement of Activities For the fiscal year ended September 30, 2009 Expenses Program Revenues Operating Grants, Contributions Capital and Restricted Grants and Interest Income Contributions Direct PRIMARY GOVERNMENT Governmental Activities General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and Recreation Interest Expense Total Governmental Activities Business Activities Department of Airports Water Utilities Department Solid Waste Authority Total Business Activities Total Primary Government COMPONENT UNITS Metropolitan Planning Organization Housing Finance Authority Westgate/Belvedere CRA Total Component Units $ 2,373,444 498,000 1,804,717 4,676,161 $ Indirect Fines, Fees and Charges for Services $ 376,447,533 739,056,445 31,362,849 159,299,029 97,547,689 102,229,637 116,514,668 57,030,394 1,679,488,244 $ (15,221,408) 6,864,575 (113,811) 423,650 417,245 2,857,924 (4,771,825) $ 114,047,649 110,334,202 10,151,537 17,193,688 3,290,607 3,698,309 14,251,315 272,967,307 $ 7,265,958 8,100,708 5,001,884 43,974,635 23,127,292 35,499,120 1,401,127 124,370,724 $ 1,571,717 276,574 7,619,448 7,088,866 281,113 1,629,438 18,467,156 76,806,657 136,210,539 182,688,229 395,705,425 $ 2,075,193,669 $ 1,239,444 3,431,230 4,670,674 (101,151) 75,700,643 130,226,088 226,946,893 432,873,624 $ 705,840,931 5,420,701 6,563,519 2,611,735 14,595,955 $ 138,966,679 $ 15,772,944 20,900,581 3,184,052 39,857,577 58,324,733 101,151 101,151 $ 493,838 493,838 $ 2,493,894 1,683,991 4,177,885 $ - $ $ $ $ $ General Revenues Taxes - levied by the County Ad-valorem taxes Utility service taxes Local option gas taxes Tourist development taxes State shared sales tax-unrestricted Franchise gross receipts fee State shared revenues-unrestricted Investment income (loss) Other general revenues Transfers - net Total general revenues and transfers Change in net assets Beginning net assets (deficit) Ending net assets The notes to the financial statements are an integral part of this statement. 4 Net (Expense) Revenue and Changes in Net Assets Primary Government Component Units Westgate/ Belvedere Homes Community Redevelopment Agency Governmental Activities Business-Type Activities Total Metropolitan Planning Organization Housing Finance Authority $ (238,340,801) $ (627,209,536) (8,589,980) (90,928,029) (71,272,327) (63,449,453) (102,090,712) (57,030,394) (1,258,911,232) - $ (238,340,801) (627,209,536) (8,589,980) (90,928,029) (71,272,327) (63,449,453) (102,090,712) (57,030,394) (1,258,911,232) $ - $ - $ - $ (1,258,911,232) $ 18,848,187 18,048,419 50,054,451 86,951,057 86,951,057 18,848,187 18,048,419 50,054,451 86,951,057 $ (1,171,960,175) $ $ $ - $ - $ - $ - $ 19,299 19,299 $ 1,679,829 1,679,829 $ (1,804,717) (1,804,717) $ $ $ $ $ $ $ 855,761,096 29,662,838 45,472,637 22,346,492 64,658,133 34,149,094 62,583,579 135,105,777 8,562,331 1,100,000 1,259,401,977 $ - $ (1,100,000) (1,100,000) 855,761,096 29,662,838 45,472,637 22,346,492 64,658,133 34,149,094 62,583,579 135,105,777 8,562,331 1,258,301,977 $ - $ - $ 2,275,753 423,882 7,393 237,215 2,944,243 490,745 2,385,630,843 $ 2,386,121,588 85,851,057 1,560,426,733 $ 1,646,277,790 $ 86,341,802 3,946,057,576 4,032,399,378 $ 19,299 (10,168) 9,131 $ 1,679,829 8,105,198 9,785,027 $ 1,139,526 2,977,314 4,116,840 5 6 DESCRIPTIONS OF MAJOR FUNDS GOVERNMENTAL FUNDS General Fund - To account for all financial resources of the general government except those required to be accounted for in other funds. Fire Rescue Special Revenue Fund - To account for ad-valorem taxes and other revenues designated for fire rescue services. Sheriff Special Revenue Fund - To account for the financial resources necessary to carry out the powers, duties and obligations of the elected office of Sheriff as detailed in Florida Statutes Chapter 30.15. General Government Capital Projects - To account for costs of capital improvements not included in any other category. It is a major fund for public interest reasons. Road Program Capital Projects - To account for costs related to the design, acquisition of rights-of-way and construction of improvements to the County's major thoroughfare road system, primarily represented by the County's Five Year Road Program. PROPRIETARY FUNDS Airports - To account for activities related to the operation of the four County-owned airports - Palm Beach International Airport in West Palm Beach and three general aviation airports located in Lantana, Pahokee and Palm Beach Gardens. Water Utilities - To account for activities related to the operation of the County-owned water and sewage system which provides water and sewer services to portions of the unincorporated area of the County as well as to certain municipalities. Solid Waste Authority - To account for activities related to the operation of the solid waste disposal facilities for Palm Beach County. 7 PALM BEACH COUNTY, FLORIDA Balance Sheet Governmental Funds September 30, 2009 MAJOR FUNDS Fire Rescue Sheriff Special Revenue Special Revenue Fund Fund General Government Capital Projects General ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Inventory Other assets Other receivable, noncurrent Total assets LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Insurance claims payable Deferred and unearned revenue Other liabilities Total liabilities FUND BALANCE Fund balances: Reserved for debt service Reserved for inventory Reserved for noncurrent loans receivable Unreserved, reported in: General Fund Special Revenue Funds Capital Projects Funds Total fund balance Total liabilities and fund balance 2,050,551 178,812,646 180,863,197 $ 222,744,384 $ 9,936,714 10,795,456 666,223 6,298,313 13,895,768 288,713 41,881,187 $ 113,739,359 7,987,517 94,643,170 4,320,457 2,050,551 3,330 $ 222,744,384 $ 120,738,843 1,460,808 3,653,263 1,442,633 2,588,848 75 $ 129,884,470 $ 68,543,777 299,173 63,389 921,805 3,592,416 78,280 73,498,840 $ 216,753,164 62 2,334,520 691,716 2,050,000 $ 221,829,462 $ $ 14,641,484 196,776 568,660 15,406,920 $ 26,975,204 21,513,038 7,370,576 1,338,728 9,084,700 66,282,246 $ 4,749,030 51,072 101,000 585,797 5,486,899 2,588,848 111,888,702 114,477,550 $ 129,884,470 $ 3,592,416 3,624,178 7,216,594 73,498,840 2,050,000 214,292,563 216,342,563 $ 221,829,462 The notes to the financial statements are an integral part of this statement. 8 Road Program Capital Projects Other Governmental Funds Total Governmental Funds $ 362,249,372 69,723 3,906,561 $ 366,225,656 $ 637,881,994 10,941,589 15,500,387 32,555,848 5,118,942 1,554,968 15,538,262 $ 719,091,990 $ 1,519,906,509 20,758,872 116,194,729 43,839,020 13,350,757 1,636,653 17,588,262 $ 1,733,274,802 $ 5,984,474 2,517,213 3,363 8,505,050 $ 39,153,856 88,471,903 12,018,300 437,329 31,078,348 357,246 171,516,982 $ 101,440,762 123,545,458 20,728,122 6,298,313 437,329 1,338,728 45,559,913 9,730,659 309,079,284 357,720,606 357,720,606 $ 366,225,656 29,560,366 5,118,942 153,610,224 359,285,476 547,575,008 $ 719,091,990 29,560,366 13,350,757 2,050,000 178,812,646 269,123,104 931,298,645 1,424,195,518 $ 1,733,274,802 9 PALM BEACH COUNTY, FLORIDA Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets - Governmental Activities September 30, 2009 Fund balance for total of governmental funds (page 9) Amounts reported for governmental activities in the statements of net assets are different because: $ 1,424,195,518 Report internal service funds as governmental activities Internal service funds are used by management to charge the costs of certain activities, such as insurance, computer services, and vehicles to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Net assets per fund statements $ Less amount due to business-type activities for 'look-back' allocation Plus amount due from component units for 'look-back' allocation 89,542,045 (5,092,462) 5,305 84,454,888 Report as a liability general long-term debt obligations Liabilities that are not due and payable in the current period do not encumber current financial resources and therefore are not reported in the governmental fund statements. General obligation bonds payable Non-ad valorem bonds payable Notes and loans payable Capital leases Compensated absences Net OPEB Obligation Liability Net Pension Obligation Termination benefits Arbitrage accrued Claims and judgments Unamortized premium Deferred loss on refundings (270,150,000) (924,051,617) (41,221,444) (3,313) (118,953,756) (28,772,598) (252,006) (1,311,105) (14,746,359) (31,746,565) (31,962,706) 11,576,607 (1,451,594,862) Report as an asset the cost of general capital assets and accumulated depreciation Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental fund statements. Non-depreciable capital assets Depreciable capital assets, net of accumulated depreciation 1,185,742,072 1,124,429,028 2,310,171,100 Report adjustments to convert from modified accrual to full accrual Interest Receivable Interest receivable on special assessments is not due and available in the current period and therefore is not reported in the governmental fund statements. 276,612 Net OPEB Obligation Asset Cumulative plan contributions in excess of ARC is reported as an asset. However, the plan contributions are reported as expenditures in the governmental fund statements. 208,367 Deferred Issue Costs Issue cost for new debt is reported as a deferred charge and amortized over the life of the debt as an expense. However, issue cost are recorded as expenditures in the governmental fund statements. 10,325,788 Accrued Interest Payable Accrued Interest Payable that is not due and payable in the current period is not reported in the governmental fund statements (19,415,405) Deferred Revenue Revenue is recognized when earned. However, revenue is deferred until the current financial resources are available in the governmental fund statements. 27,525,452 Due To Other Governments Palm Beach County and the Palm Beach County School District engage in an interlocal agreement that allows them to exchange land and maintain a receivable and payable for the difference in value. When a general capital asset is exchanged for another capital asset and there is no receipt of current financial resources for the difference in value, the receivable or payable is not reported in the governmental fund statements. (25,870) 18,894,944 Net assets of governmental activities (page 2) $ 2,386,121,588 10 11 PALM BEACH COUNTY, FLORIDA Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the fiscal year ended September 30, 2009 MAJOR FUNDS Fire Rescue Sheriff Special Revenue Special Revenue Fund Fund $ 199,401,782 276,574 5,123 299,134 28,537,300 11,938,238 493,544 240,951,695 $ 1,722,719 207,490 356,025 23,155 2,309,389 $ General Government Capital Projects 330 265,728 3,233,794 788,494 1,184,138 15,852,616 1,921,816 23,246,916 General Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Less - excess fees paid out Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 (Restated) Increase (decrease) in reserves, inventory Fund balances, September 30, 2009 $ 611,961,730 44,000 31,574,290 25,699,294 87,296,406 1,773,502 25,028,176 8,236,093 791,613,491 123,163,174 33,081,054 13,045,938 6,805,298 27,305,408 53,166,793 58,819,037 289,736 315,676,438 475,937,053 63,670,349 (579,131,367) (515,461,018) (39,523,965) 220,335,250 51,912 $ 180,863,197 214,684,040 961,656 5,616,363 221,262,059 19,689,636 6,809,554 (6,200,000) 609,554 20,299,190 94,117,444 60,916 $ 114,477,550 $ 20,369,454 415,387,129 26,124,007 461,880,590 (459,571,201) 481,337,223 (20,555,373) 460,781,850 1,210,649 6,005,945 7,216,594 27,589,326 423,392 3,931,516 1,006,381 23,206,219 20,140,230 1,103,585 77,400,649 (54,153,733) 37,179,660 (64,938,281) 58,645,760 804,667 51,730,000 979,778 84,401,584 30,247,851 186,094,712 $ 216,342,563 The notes to the financial statements are an integral part of this statement. 12 Road Program Capital Projects $ 33,243,387 5,932,998 18,327,804 26,719,373 3,548,171 87,771,733 Other Governmental Funds $ 137,005,656 6,281,595 13,697,790 182,845,208 150,427,675 (45,435,474) 8,885,551 47,319,653 9,704,294 510,731,948 Total Governmental Funds $ 981,612,885 12,800,895 45,277,203 230,405,234 268,772,594 (45,435,474) 12,050,681 127,214,081 23,927,073 1,656,625,172 2,802,516 5,329,137 42,408 500,000 63,578,469 72,252,530 15,519,203 816,200 (36,330,531) (35,514,331) (19,995,128) 377,715,734 $ 357,720,606 $ 127,420,940 25,781,352 12,607,785 116,206,771 47,516,839 48,226,230 44,394,467 110,821,264 132,325,829 665,301,477 (154,569,529) 284,525,473 (167,533,391) 1,199,000 (47,904,895) 70,286,187 (84,283,342) 632,146,382 (288,032) 547,575,008 301,345,410 689,356,967 29,585,239 129,347,587 99,032,530 101,393,023 103,713,504 226,570,069 133,429,414 1,813,773,743 (157,148,571) 874,338,459 (874,688,943) 59,844,760 804,667 51,730,000 979,778 (47,904,895) 65,103,826 (92,044,745) 1,516,415,467 (175,204) $ 1,424,195,518 13 PALM BEACH COUNTY, FLORIDA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities For the fiscal year ended September 30, 2009 Net increase (decrease) in fund balances for total governmental funds (page 13) Amounts reported for governmental activities in the statements of activities are different because: $ (92,044,745) Report internal service funds as governmental activities Internal service funds are used by management to charge the cost of certain activities, such as vehicles, computer systems, printing, and insurance to individual funds. The net revenue (loss) of the internal service funds is reported with governmental activities. Net income (loss) per fund statements Plus current year allocation of internal service funds to business-type activities Plus current year allocation of internal service funds to component units $ 3,293,143 259,870 3,717 3,556,730 Report as a liability long-term debt obligations Debt issuance Debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets and does not result in a revenue. Current year face value of debt issued Governmental funds report the premium and discount on debt issues as revenue, but in the statement of activities these amounts are amortized to interest expense. Current year (premium) discount on debt issued Current year amortization of premium / discount Governmental funds report the effect of gains and losses on refundings when the debt is first issued, but in the statement of activities these amounts are deferred and amortized. Current year refunding (gain) loss deferred Current year amortization of deferred refunding gain / loss Debt retirement Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets and does not result in an expense. (111,574,760) (1,784,444) 2,101,700 108,573 (834,041) 123,752,408 The change in accrued liabilities reported as long-term obligations do not require the use of current financial resources and therefore are not reported in the governmental fund statements. (Increase) Decrease in arbitrage 'long term' accrued liability Net (Increase) Decrease in total arbitrage liability Arbitrage fund liabilities paid during the year (Increase) Decrease in Net OPEB Obligation liability (Increase) Decrease in estimated self-insurance obligation (Increase) Decrease in termination benefits (Increase) Decrease in Net Pension Obligation- Palm Tran (Increase) Decrease in compensated absences liability $ (11,824,989) 1,755,377 (10,069,612) (17,254,829) (641,468) (1,311,106) (252,006) (8,603,297) (26,362,882) 14 PALM BEACH COUNTY, FLORIDA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities For the fiscal year ended September 30, 2009 Report as an asset the cost of general capital assets and accumulated depreciation Acquisition of capital assets Governmental funds report capital outlays as expenditures, but capital purchases increase assets in the statement of net assets and do not result in an expense. Acquisition of capital assets from contributions do not generate current financial resources and therefore are not reported in the governmental fund statements as revenue. Depreciation expense The cost of capital assets is allocated over their useful life as depreciation expense. However, depreciation does not require the use of current financial resources and therefore is not reported in the governmental fund statements. Retirement of capital assets In the statement of activities, only the gain on the sale of capital assets is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance 224,449,433 3,662,957 (98,941,561) (10,755,429) 118,415,400 Report other adjustments for converting from modified accrual to full accrual Net Increase (Decrease) in deferred issue costs: Current year debt issue costs deferred Current year amortization of deferred issue costs Increase (Decrease) in inventory Increase (Decrease) in accrued interest receivable Increase (Decrease) in Net OPEB Obligation Asset (Increase) Decrease in due to other governments (Increase) Decrease in accrued interest payable (Increase) Decrease in deferred revenue 1,141,666 (829,096) 312,570 (175,204) (12,107) (2,663,616) 88,000 (3,481,153) 2,857,752 (3,073,758) Increase (decrease) in net assets of governmental activities (page 5) $ 490,745 15 PALM BEACH COUNTY, FLORIDA Statement of Net Assets Proprietary Funds September 30, 2009 Business-type Activities Water Utilities Airports ASSETS Current assets: Cash and cash equivalents Cash and cash equivalents - restricted Interest receivable - restricted Interest receivable Accounts receivable, net Due from other county funds Due from other governments Due from component unit Inventory Current portion of other receivable Other assets Total current assets Noncurrent assets: Restricted assets: Cash and cash equivalents Cash with fiscal agent Interest receivable Accounts receivable, net Total noncurrent restricted assets Capital assets: Land Buildings Improvements other than buildings Furniture, fixtures and equipment Leasehold interest Goodwill Intangible - easement rights Accumulated depreciation and amortization Construction in progress Total capital assets Investments Investment in joint ventures Loans receivable, noncurrent Deferred issuance costs Other assets Total noncurrent assets Total assets $ $ 42,515,751 2,834,986 4,556,409 1,095,517 113,550 1,191,896 52,308,109 $ 58,964,931 25,001,753 759,800 14,110,738 41,016 768,300 7,439,898 752,030 287,490 108,125,956 44,853,672 14,237,993 1,700,200 60,791,865 95,596,241 346,228,850 179,712,890 39,985,997 13,754,957 (301,531,800) 15,976,849 389,723,984 598,718 1,729,564 452,844,131 505,152,240 61,922,876 61,922,876 15,510,275 103,715,377 1,147,463,952 72,956,968 12,120,667 7,131,703 1,660,856 (423,460,825) 20,145,664 957,244,637 35,119,164 17,027,115 2,025,798 1,073,339,590 $ 1,181,465,546 The notes to the financial statements are an integral part of this statement. 16 Enterprise Funds Solid Waste Authority Totals Governmental Activities Internal Service Funds $ 110,883,597 482,507,342 64,789 187,369 6,943,407 2,443,346 7,241,727 293,285 1,460,613 612,025,475 $ 212,364,279 507,509,095 64,789 947,169 23,889,131 2,484,362 5,324,709 15,777,142 1,158,865 2,939,999 772,459,540 $ 103,864,158 2,172,057 7,669,032 254,436 5,483 1,443,287 4,724,325 120,132,778 48,882,681 135 48,882,816 50,626,126 294,872,393 98,036,801 179,852,981 (253,965,246) 102,708,679 472,131,734 1,057,966 1,328,106 11,121,279 7,443 534,529,344 $ 1,146,554,819 155,659,229 14,237,993 135 1,700,200 171,597,557 161,732,642 744,816,620 1,425,213,643 292,795,946 12,120,667 7,131,703 15,415,813 (978,957,871) 138,831,192 1,819,100,355 1,057,966 35,119,164 18,953,939 14,876,641 7,443 2,060,713,065 $ 2,833,172,605 $ 206,558 512,286 99,363,826 (68,128,750) 31,953,920 31,953,920 152,086,698 17 PALM BEACH COUNTY, FLORIDA Statement of Net Assets Proprietary Funds September 30, 2009 Business-type Activities Airports LIABILITIES Current liabilities payable from current assets: Vouchers payable and accrued liabilities Due to other county funds Due to other governments Unearned revenue Current portion of long-term debt Compensated absences Insurance claims payable Other liabilities Total current liabilities payable from current assets Current liabilities payable from restricted assets: Customers' deposits Accounts and contracts payable Due to other governments Accrued landfill closure and postclosure care costs Current portion of long-term debt Interest payable on bonds Total current liabilities payable from restricted assets Total current liabilities Noncurrent liabilities: Due to other governments Note payable Compensated absences Revenue bonds payable, net of discount Other long-term liabilities Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for: Debt service Capital projects Grants and other Unrestricted Total net assets $ 246,835,375 8,011,487 34,859,502 8,872,288 40,365,689 338,944,341 $ 771,925,990 14,690,000 1,669,889 500,000 130,367,727 919,153,606 $ 7,538,978 1,399,015 2,071,655 562,353 118,000 1,395,119 13,085,120 502,871 271,502 310,000 7,535,000 3,889,103 12,508,476 25,593,596 1,162,330 139,428,721 23,252 140,614,303 166,207,899 $ 7,501,785 1,103,791 2,668,714 50,592 206,000 30,747 11,561,629 4,232,974 1,350,998 274,170 14,690,000 4,453,611 25,001,753 36,563,382 1,684,800 2,683,185 221,185,998 194,575 225,748,558 262,311,940 Water Utilities Some amounts reported for business-type activities in the statement of net assets (page 2) are different because certain internal service fund assets and liabilities are included with business-type activities. Net assets of business-type activities The notes to the financial statements are an integral part of this statement. 18 Enterprise Funds Solid Waste Authority Totals Governmental Activities Internal Service Funds $ 14,664,601 30,197 4,000,000 341,130 448,000 451,556 19,935,484 533,685 12,795,031 350,000 71,475,000 12,299,942 97,453,658 117,389,142 72,000,000 4,310,026 503,154,807 66,613,463 646,078,296 763,467,438 $ 29,705,364 2,533,003 4,740,369 562,353 4,050,592 665,130 448,000 1,877,422 44,582,233 5,269,530 14,417,531 584,170 350,000 93,700,000 20,642,656 134,963,887 179,546,120 1,684,800 72,000,000 8,155,541 863,769,526 66,831,290 1,012,441,157 1,191,987,277 $ 2,470,283 269,662 222,082 44,698 339,421 21,449,517 24,795,663 24,795,663 37,748,990 37,748,990 62,544,653 277,217,503 15,927,100 17,981,694 71,961,084 $ 383,087,381 1,295,978,868 22,701,487 52,456,491 27,353,982 242,694,500 1,641,185,328 5,092,462 $ 31,848,109 57,693,936 89,542,045 $ 1,646,277,790 19 PALM BEACH COUNTY, FLORIDA Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds For the fiscal year ended September 30, 2009 Business-type Activities Airports Operating revenues: Charges for services Miscellaneous Total operating revenues Operating expenses: Aviation services Water and sewer services Transportation services Solid waste services Self-insurance services Data processing services Equity interest in net loss of joint venture Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment income Guaranteed revenue Passenger facility charges Deferred issue costs Interest expense Investment termination loss Other revenues (expenses) Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net assets October 1, 2008 Net assets September 30, 2009 $ $ 61,030,647 2,270,849 63,301,496 45,601,969 24,207,560 69,809,529 (6,508,033) 5,420,701 12,399,147 (129,773) (7,778,207) (289,870) 9,621,998 3,113,965 15,772,944 (1,100,000) 17,786,909 321,157,432 338,944,341 $ $ Water Utilities 125,652,985 4,573,103 130,226,088 89,241,296 1,718,400 41,335,106 132,294,802 (2,068,714) 6,563,519 2,921,698 (145,171) (7,011,305) 49,810 2,378,551 309,837 17,978,883 18,288,720 900,864,886 919,153,606 Some amounts reported for business-type activities in the statement of activities (page 5) are different because the net revenue (expense) of certain internal service funds is reported with business-type activities. Change in net assets of business-type activities The notes to the financial statements are an integral part of this statement. 20 Enterprise Funds Solid Waste Authority $ 221,579,439 221,579,439 142,615,782 24,396,773 167,012,555 54,566,884 2,611,735 (14,002,833) (1,691,994) 5,367,454 (7,715,638) 46,851,246 3,184,052 50,035,298 333,052,083 $ 383,087,381 (259,870) $ Totals 408,263,071 6,843,952 415,107,023 45,601,969 89,241,296 142,615,782 1,718,400 89,939,439 369,116,886 45,990,137 14,595,955 2,921,698 12,399,147 (274,944) (28,792,345) (1,691,994) 5,127,394 4,284,911 50,275,048 36,935,879 (1,100,000) 86,110,927 Governmental Activities Internal Service Funds $ 143,535,853 143,535,853 19,752,890 91,108,465 32,329,614 11,304,871 154,495,840 (10,959,987) 7,903,802 (6,846) 2,022,439 9,919,395 (1,040,592) 2,883,251 1,859,063 (408,579) 3,293,143 86,248,902 $ 89,542,045 $ 85,851,057 21 PALM BEACH COUNTY, FLORIDA Statement of Cash Flows Proprietary Funds For the fiscal year ended September 30, 2009 Business-type Activities Airports Cash flows from operating activities: Cash received from customers Cash received from other funds for goods and services Cash payments to vendors for goods and services Cash payments to employees for services Cash payments to other funds Claims paid Other receipts Net cash provided by operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Proceeds from sale of capital assets Contributed capital Purchase and construction of capital assets Proceeds from long-term borrowings Payments to joint ventures Principal payments on debt Interest payments on debt Paying agent fees Passenger facility charges received Proceeds on issuance of revenue bonds Bond issuance costs paid Principal received on notes receivable Net cash provided by (used in) capital and related financing activities Cash flows from investing activities: Interest on investments Receipt of repayments on other receivables Proceeds from sale of investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, October 1, 2008 Cash and cash equivalents, September 30, 2009 $ Water Utilities 60,841,734 $ 125,339,840 (15,036,575) (47,591,282) (11,499,573) (28,322,344) (18,165,789) (14,359,718) 6,146,519 16,139,797 256,147 256,147 61,460 5,868,079 (22,261,272) (7,225,000) (7,922,705) 12,119,352 (19,360,086) 5,420,701 107,290 5,527,991 2,563,849 99,043,567 41,213,015 235,998 13,452,937 (33,502,680) (3,460,837) (14,070,000) (8,007,185) (8,981) 70,082,938 (770,746) 23,951,444 7,696,367 7,696,367 72,860,826 73,028,734 $ 145,889,560 $ 101,607,416 The notes to the financial statements are an integral part of this statement. 22 Enterprise Funds Solid Waste Authority $ 220,224,231 609,102 (109,579,826) (31,637,237) (8,816,628) 600,430 71,400,072 $ Totals 406,405,805 609,102 (172,207,683) (71,459,154) (41,342,135) 6,746,949 128,752,884 256,147 256,147 Governmental Activities Internal Service Funds $ 11,549,590 130,918,757 (38,490,990) (27,280,872) (4,734,961) (71,159,899) 1,419,563 2,221,188 1,859,063 (408,579) 1,450,484 5,681,712 8,569,473 (78,836,479) 397,939,962 (36,520,000) (11,009,555) (10,474,478) 279,333 275,629,968 5,522,790 19,862,274 25,385,064 372,415,104 269,858,516 $ 642,273,620 $ 5,979,170 27,890,489 (134,600,431) 397,939,962 (3,460,837) (57,815,000) (26,939,445) (8,981) 12,119,352 70,082,938 (11,245,224) 279,333 280,221,326 18,639,858 107,290 19,862,274 38,609,422 447,839,779 441,930,817 889,770,596 $ 1,045,043 (8,369,467) (205,825) (8,763) (7,539,012) 7,903,802 7,903,802 4,036,462 99,827,696 103,864,158 23 PALM BEACH COUNTY, FLORIDA Statement of Cash Flows Proprietary Funds For the fiscal year ended September 30, 2009 Business-type Activities Airports Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization Equity interest in net loss of joint venture Provision for doubtful accounts (Gain) on disposal of equipment Miscellaneous revenue Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) in due from other county funds Decrease in due from other governments (Increase) in inventory (Increase) in other assets (Increase) in due from component unit Increase (decrease) in vouchers payable and accrued liabilities Increase in due to other county funds Increase (decrease) in due to other governments Increase in other current liabilities Increase (decrease) in unearned revenue Increase in current portion of long-term debt Increase (decrease) in customer deposits Increase in insurance claims payable Increase in other long-term liabilities Net cash provided by operating activities Supplemental disclosure of noncash capital and related financing activities: Net capital assets transferred to other funds Amortization of deferred issuance costs Amortization of premium on bonds Amortization of discount on bonds Amortization of deferred advance refunding loss Disposal of fully depreciated capital assets Increase (decrease) in fair value of investments Contribution of capital assets $ $ $ $ $ $ $ $ (1,100,000) $ 166,787 384,568 347,555 3,218,152 6,583,835 $ $ $ $ $ $ $ 145,171 632,710 339 331,470 2,653,269 8,758,740 $ (6,508,033) $ 24,207,560 30,111 (2,002,076) (105,953) (153,778) 254,574 16,490 858,588 (627,759) 170,073 $ 16,139,797 $ (2,068,714) 41,335,106 1,718,400 814,900 (455,040) (6,401) (630,841) (13,432) (384,838) 159,503 56,616 687,756 41,213,015 Water Utilities The notes to the financial statements are an integral part of this statement. 24 Enterprise Funds Solid Waste Authority Totals Governmental Activities Internal Service Funds $ 54,566,884 24,396,773 20,054 (4,658,925) 5,367,454 941,191 (1,478,253) (6,872,314) (284,537) (4,463,143) 2,257,660 150,404 (51,175) 1,507,999 $ 45,990,137 89,939,439 1,718,400 865,065 (4,658,925) 5,367,454 (1,515,925) (1,484,654) (7,609,108) (451,747) (4,593,407) 2,433,653 56,616 1,008,992 (627,759) 806,654 1,507,999 $ (10,959,987) 11,304,871 1,419,563 (172,055) (936,725) 16,332 (170,427) (297,083) (1,777) (674,818) 92,588 (16,255) 44,698 163,195 2,409,068 - $ 71,400,072 $ 128,752,884 $ 2,221,188 $ $ $ $ $ $ $ $ 618,037 986,073 2,421,393 (398,698) - $ $ $ $ $ $ $ $ (1,100,000) 929,995 2,003,351 339 3,100,418 5,871,421 (398,698) 15,342,575 $ $ $ $ $ $ $ $ 7,897,133 2,883,251 25 PALM BEACH COUNTY, FLORIDA Statement of Fiduciary Net Assets - Agency Funds September 30, 2009 Total Agency Funds ASSETS Cash and cash equivalents Accounts receivable, net Due from other governments Other assets Total assets $ 74,508,374 480,239 682,525 468 $ 75,671,606 LIABILITIES Vouchers payable and accrued liabilities Due to other governments Due to individuals Other liabilities Total liabilities $ 5,115,098 40,314,722 29,887,235 354,551 $ 75,671,606 The notes to the financial statements are an integral part of this statement. 26 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 INDEX 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .............................. 28 2. CASH AND INVESTMENTS .................................................................................... 46 3. RELATED PARTY TRANSACTIONS.................................................................... 53 4. CAPITAL ASSETS..................................................................................................... 53 5. INTERFUND TRANSFERS IN AND OUT ............................................................. 55 6. RETIREMENT PLANS ............................................................................................. 58 7. COMMITMENTS....................................................................................................... 63 8. RISK MANAGEMENT.............................................................................................. 67 9. OTHER POST EMPLOYMENT BENEFITS (OPEB) ........................................... 71 10. LEASES ..................................................................................................................... 77 11. LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS ......................... 79 12. REFUNDING OF DEBT .......................................................................................... 81 13. RECLASSIFICATIONS .......................................................................................... 83 14. INTERFUND RECEIVABLE AND PAYABLE BALANCES ............................. 83 15. LONG-TERM DEBT................................................................................................ 87 16. CONTINGENCIES................................................................................................. 108 17. PLEDGED REVENUES ........................................................................................ 109 18. SUBSEQUENT EVENTS ....................................................................................... 110 27 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Palm Beach County, Florida reporting entity (the County) 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 County‟s more significant accounting policies are described below. A. Financial Reporting Entity Palm Beach County is a political subdivision of the State of Florida pursuant to Article VIII, Section (1) of the Constitution of the State of Florida. It is governed by a seven member elected Board of County Commissioners (the Board) which is regulated by State Statutes and a local County Charter, operating under a County Manager form of government with separation of legislative and executive functions. In addition to the members of the Board, there are five elected Constitutional Officers: the Tax Collector, Property Appraiser, Clerk & Comptroller, Sheriff, and the Supervisor of Elections. The Board and the Constitutional Officers comprise the Palm Beach County primary government. As required by GAAP, these financial statements cover the Palm Beach County reporting entity which includes the Palm Beach County primary government as well as its component units. Component units are legally separate entities for which the primary government is financially accountable. In accordance with GASB Statement No. 14, The Financial Reporting Entity, Component units are either classified as blended component units or discretely presented component units, depending on the nature of the entity‟s relationship with the primary government. GASB Statement No. 14 provides the following criteria for determining whether or not an entity is a component unit of the reporting entity: The definition of the reporting entity is based primarily on the concept of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of the separate organization‟s governing body and either is able to impose its will on that organization or there is the potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, activities of, or the level of services performed or provided by the organization. A financial benefit or burden relationship exists if the primary government is entitled to the organization‟s resources; is legally obligated or has otherwise assumed the obligations to finance the deficits of, or provide financial support to, the organization; or is obligated in some manner for the debt of the organization. Some organizations are included as component units because of their fiscal dependency on the primary government. An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. 28 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 In addition, any entity, for which the primary government is not financially accountable but for which exclusion would cause the primary government‟s financial statements to be misleading, should be included as a component unit. In accordance with GASB Statement No. 39, Determining Whether Certain Organizations Are Component Units: an Amendment of GASB Statement No. 14, a government must include certain legally separate, tax-exempt entities in the government‟s financial reporting entity as discretely presented component units if they meet all three of the following conditions: (a) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents; (b) the primary government or its component units, are entitled to or have the ability to otherwise access a majority of the economic resources received or held by the separate organizations; or (c) the economic resources received or held by an individual organization that the specific primary government is entitled to, or has the ability to otherwise access, are significant to that primary government. GASB Statement No. 39 had no effect on determining the County‟s discretely presented component units and therefore had no effect on the financial statements. Based on the criteria specified above, the Palm Beach County reporting entity includes both blended component units and discretely presented component units. Blended Component Units The following organizations have been presented as blended component units because the organization‟s governing body is substantially the same as the governing body of the County, or the organization provides services almost entirely to the primary government. Palm Beach County Public Building Corporation – This corporation was created by Palm Beach County Ordinance 81-11 pursuant to Article VIII, Section 1 (f) of the Constitution of the State of Florida and Sections 125.01 (w) and 125.66, Florida Statutes. The corporation was incorporated on April 2, 1981 to provide financial assistance for and on behalf of the County by paying the costs of acquiring, constructing and equipping an Administrative Complex located at 301 North Olive Avenue in the City of West Palm Beach, Florida (the Project). The corporation also participates in certain activities incidental to such purpose, including the leasing of the Project to the County. This corporation currently has no fiscal activity. Transportation Authority (Palm Tran, Inc.) – This corporation was created by Palm Beach County Resolution 95-1636D pursuant to Chapter 617, Florida Statutes. Its purpose is to operate for the advancement of charity by advancing public transportation and lessening the burden on Palm Beach County to provide a transportation system. The Board of Palm Tran, Inc. consists of the seven members of the Board of County Commissioners of Palm Beach County. The bylaws provide that the corporation shall have a president to act as the corporation‟s chief executive officer who shall be the County Administrator, a secretary/treasurer who shall be the Clerk to the Board of County Commissioners 29 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 or a deputy clerk designated for such purposes, and an executive director who shall be responsible for the day to day management and operations of the corporation. Palm Tran, Inc. is reported as a special revenue fund. Solid Waste Authority of Palm Beach County (SWA) – The SWA is a dependent special district created under the Palm Beach County Solid Waste Act (the Act), Chapter 75-473, Laws of Florida. Chapter 91-334, Laws of Florida, became effective October 1, 1991 and amended Chapter 75-473 by providing that the seven members of the Palm Beach County Board of County Commissioners shall serve as the governing board of the Authority. The Board of the SWA is responsible for adopting an annual, non-appropriated, operating budget as a financial plan for the year. The Act gives the SWA the power to construct and operate solid waste disposal facilities and to require that all solid waste collected by private and/or public agencies within the County for disposal in the County be delivered to processing and disposal facilities designated by the SWA. The SWA is reported as an enterprise fund. Discretely Presented Component Units The Component Unit columns in the basic financial statements include the financial data of the County‟s discretely presented Component Units. They are reported in separate columns to emphasize that they are legally separate from the County. The following organizations are included in the reporting entity because the primary government (1) appointed a voting majority of the organization‟s board, (2) is able to impose its will on the organization, and (3) the organization provides services to the citizenry of Palm Beach County. Housing Finance Authority of Palm Beach County, Florida (HFA) – This public authority was created by Palm Beach County Ordinance 79-3 pursuant to Chapter 159, Florida Statutes, as amended and supplemented. It was created to alleviate the shortage of housing available at affordable rates in Palm Beach County and the shortage of capital for investments in such housing. The Authority has the power to issue single family and multi-family revenue bonds to finance the purchase of housing by families of low and moderate income through investing in mortgage loans to eligible families. The HFA is presented as a proprietary fund type. Westgate/Belvedere Homes Community Redevelopment Agency (CRA) – This agency was created by Palm Beach County Resolution 89-649 pursuant to Section 163.355, Florida Statutes. It was created in order to develop and revitalize the blighted area known as Westgate/Belvedere Homes with intent to benefit Palm Beach County as a whole by returning improved property to the County‟s tax base. The CRA has the power to issue redevelopment revenue bonds from time to time to finance its undertaking of community redevelopment to the designated area. The CRA is presented as a governmental fund type. Metropolitan Planning Organization (MPO) – This organization was created by Palm Beach County Resolution 79-1684 pursuant to Section 334.215, Florida 30 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Statutes, as amended by Section 339.175, Florida Statutes. The members of the MPO are appointed by the Governor and consist of five members of the Board of County Commissioners, eleven members from local municipalities, and one member from the governing board of the Port of Palm Beach. The purpose of the MPO is to administer and execute the inter-local agreement providing for shortterm and long-term planning for all modes of travel in order to benefit the citizens of Palm Beach County. The MPO is reported as a governmental fund type. Complete financial statements for each of the individual component units may be obtained at the respective entity‟s administrative offices. Palm Beach County Public Building Corporation 301 North Olive Avenue West Palm Beach, FL 33401 Solid Waste Authority of Palm Beach County 7501 North Jog Road West Palm Beach, FL 33412 Metropolitan Planning Organization 160 Australian Avenue, Suite 201 West Palm Beach, FL 33406 Housing Finance Authority of Palm Beach County 810 Datura Street West Palm Beach, FL 33401 Westgate/Belvedere Homes Community Redevelopment Agency 160 Australian Ave, Suite 500 West Palm Beach, FL 33406 Related Organizations The County‟s officials are also responsible for appointing the members of the boards of other organizations, but the County‟s accountability for these organizations do not extend beyond making the appointments. The following organizations are related organizations which have not been included in the reporting entity: Palm Beach County Educational Facilities Authority – This organization was created by Palm Beach County Resolution 79-1493 pursuant to Chapter 243.18, Florida Statutes. Members of the authority are appointed by the Board of County Commissioners of Palm Beach County, but the County does not provide funding, has no obligation for the debt issued by the authority and cannot impose its will. Palm Beach County Health Facilities Authority – This organization was created pursuant to Part III – Chapter 154, Florida Statutes, and by Ordinance 77379 and 77-398 adopted by the Board of County Commissioners. Members of the authority are appointed by the Board of County Commissioners of Palm Beach County, but the County does not provide the funding, has no obligation for the debt issued by the authority and cannot impose its will. Palm Beach County Workforce Development Board, Inc. – This Board was created pursuant to Palm Beach County Resolution 96-805D, as amended by 31 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Resolutions 96-1539D and 97-510Dm as a result of the enactment by the Florida Legislature of the Workforce Florida Act of 1996. Members of the board are appointed by the Board of County Commissioners of Palm Beach County, but the County does not provide the funding, has no obligation for the debt issued by the board and cannot impose its will. Joint Ventures East Central Regional Wastewater Facility In September 1992, Palm Beach County entered into a thirty-year joint inter-local agreement (the Agreement) with four municipalities for the East Central Regional Wastewater Facility (the Facility). The Facility was created to receive, treat and dispose of sewage generated within each municipality and the County. Under GAAP, the County is required to account for this joint venture using the equity method. Accordingly, the County recorded its initial investment at cost and is required to record its proportionate share of the Facility‟s income or loss as well as additional contributions made or distributions received. Palm Beach County‟s interest in the joint venture is recorded in the County‟s Water Utilities Enterprise Fund. As of September 30, 2008, the Facility had total assets of $101,074,170 and total net assets of $88,449,658 including $63,310,884 invested in capital, net of debt, and $13,699,359 of unrestricted net assets. September 30, 2009 amounts are expected to approximate the above figures. The Agreement provides for the establishment of a board comprised of one representative from each participating entity, with the City of West Palm Beach being designated to administer and operate the Facility. The Facility‟s board has the authority to accept and disburse funds, approve an annual budget, transact business, enter into contracts and decide all other matters related to the Facility. The proportionate share for each entity is determined by the reserve capacity of the Facility allocated to each participant. At September 30, 2009, Palm Beach County had a 33.59% interest. The participants and each entity‟s interest at September 30, 2009 are as follows: RESERVE CAPACITY PERCENTAGES 26.56% 33.59% 19.53% 12.50% 7.82% 100.00% PARTICIPANT City of West Palm Beach Palm Beach County City of Lake Worth City of Riviera Beach Town of Palm Beach TOTAL 32 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Separate financial statements for the Facility may be obtained at the following address: East Central Regional Wastewater Facilities City of West Palm Beach P.O. Box 3506 West Palm Beach, FL 33402 Sunshine State Governmental Financing Commission The Sunshine State Governmental Financing Commission (the "Commission") was created in November 1985. As a joint venture among the member governmental units, the Commission enables a limited number of qualifying governments to participate in pooled debt financing with pricing and cost structures not normally available to governmental entities acting individually. Loan obligations from the Commission are reflected as debt by the participating governmental units. Palm Beach County has no obligation and minimal event risk associated with the Commission other than the repayment of its loan from the Commission. Financial Statements may be obtained from the Commission. B. Basic Financial Statements The County‟s Basic Financial Statements contain three components; government-wide financial statements, fund financial statements and notes to the financial statements. Government-wide financial statements - The government-wide financial statements provide an overview of the County‟s financial position using the accrual basis of accounting. The Statement of Net Assets presents information on all of the assets and liabilities of the County as a whole. The difference between assets and liabilities is reported as net assets. Changes in net assets may serve as an indicator of whether the financial position of the County is improving or deteriorating. The Statement of Activities presents information showing how the County‟s net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying economic transactions occur, regardless of when cash is received or paid. Therefore, some of the revenues or expenses reported in the Statement of Activities will have cash flows in future fiscal periods. For example, uncollected taxes are shown as revenues although cash receipts will occur in the future. Unused vacation leave results in an expense although related cash outflows will occur in the future. The government-wide financial statements show a distinction 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 33 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 the County include the Water Utilities Department, the Department of Airports and the Solid Waste Authority. The government-wide financial statements include not only the County itself (the primary government), but also its‟ discretely presented component units, the legally separate entities for which the County is financially accountable. 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 uses fund accounting to ensure and demonstrate compliance with legal, legislative, contractual, and other finance-related provisions. All of the funds of the County may be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds – Most of the County‟s basic services are reported in governmental funds, which focus on how money or other spendable financial resources flow into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using the modified accrual basis of accounting, which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the County‟s general governmental operations and the basic services it provides. The measurement focus is based upon determination of changes in financial resources. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the County‟s programs. The governmental fund category includes the general fund, special revenue funds, debt service funds, and capital project funds. There is a reconciliation of the governmental activities presented in the Statement of Net Assets and the Statement of Activities to the governmental funds presented in the fund financial statements. The following is a description of the County‟s major governmental funds: The General Fund is the primary operating fund of the County. It is used to account for all financial resources of the general government except those required to be accounted for in other funds. The General Fund specifically accounts for the County-wide and Municipal Services Taxing Unit portions of the General Fund. Special Revenue Funds: The Fire Rescue Fund is used to account for ad valorem taxes and other revenues designated for fire rescue services. The Sheriff’s Fund is used to account for the expenditures necessary to carry out the powers, duties and obligations of the elected office of Sheriff as detailed in Chapter 30.15, Florida Statutes. Capital Projects Funds: The General Government Capital Fund is used to account for improvements not included in any other category. It is a major fund for public interest reasons. 34 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 The Road Program Capital Fund is used to account for costs related to the design and acquisition of rights of way and the construction of improvements to the County‟s major thoroughfare road system, primarily represented by the County‟s Five Year Road Program. All other nonmajor governmental funds are aggregated into a single column for presentation purposes. Proprietary Funds – The 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. The County uses enterprise funds to account for its Water Utilities Department, its Department of Airports and the Solid Waste Authority. All three of these operations are considered to be major proprietary funds of the County. Internal Service Funds are used to accumulate and allocate costs internally among the County‟s other functions. The County uses internal service funds to account for Fleet Management, Risk Management and Information Systems Service programs. These programs are included in the governmental activities column of the government-wide financial statements because they predominantly benefit governmental rather than business-type functions. The measurement focus is based on changes in economic resources. The four internal service funds are aggregated into a single column for presentation in the proprietary fund financial statements. The County‟s three major proprietary funds are described below: The Water Utilities Department Fund is used to account for the operations of the water and wastewater system in the unincorporated areas of the County. Water and wastewater fees are determined annually by rate studies and are set at levels to recover the expenses of operations, including debt service, in a manner similar to private business enterprises. Activities necessary to provide water and wastewater service are accounted for in this fund, including customer service, engineering, operations and maintenance. The Department of Airports Fund is used to account for the operations of the four County-owned airports – Palm Beach International Airport in West Palm Beach and three general aviation airports located in Palm Beach Gardens, Lantana and Pahokee. The Solid Waste Authority Fund is used to account for the operations of the Solid Waste Authority on a countywide basis. Refuse generated in the unincorporated areas of the County is collected by franchised and non-franchised collectors serving residential and commercial customers and by private companies servicing their own customers. Refuse dumping fees are reviewed annually and are set at levels sufficient to recover operating and debt service expenses. Agency Funds are custodial in nature (assets equal liabilities) and do not measure results of operations. Agency funds are used to account for resources held by the government as an agent for individuals, private organizations and other governments. Assets held include cash bonds, purchasing bid bonds, security deposits, fines and forfeitures, tax deeds, tax payments, and license and registration payments. These funds are not included 35 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 in the government-wide financial statements because the resources in these funds are not available to support the County‟s own programs. C. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment for transactions 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 indicates the timing of transactions or events for recognition in the financial reports. The government-wide and proprietary fund financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. The Agency fund financial statements are presented using the accrual basis of accounting. With the economic resources measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. With the accrual method of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Government-wide financial statements and proprietary fund financial statements show increases (revenues) and decreases (expenses) in net assets. Governmental fund financial statements are presented using the current financial resources and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds show increases (i.e. revenues and other financing resources) and decreases (i.e. expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, that is, when they become both measurable and available to pay liabilities of the current period. For this purpose, the County considers revenue to be available if they are collected within 60 days of year-end. Revenues not considered available are recorded as deferred revenues. Property taxes when levied for, intergovernmental revenue when all eligibility requirements have been met, franchise fees, utility taxes, licenses and permits, charges for services and Investment Income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Expenditures generally are recorded when a liability is incurred; however, debt service expenditures, as well as expenditures related to compensated absences, claims and judgments, and other post employment benefits are recorded only when payment is due. In applying the susceptible to accrual concept to intergovernmental revenues, there are essentially two types of revenues. In one, monies must be expended for the specific purpose or project before any intergovernmental revenues will be received by the County; therefore, revenues are recognized based upon the expenditures incurred when the eligibility requirements are met, if “available” under modified accrual. In the other, intergovernmental revenues are virtually unrestricted and are usually revocable only for 36 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. D. Cash and Investments Additional information is provided in Note 2, Cash and Investments. Deposits All deposits are held in qualified public depositories pursuant to the Florida Statutes, Chapter 280, "Florida Security for Public Deposits Act" and are covered by either federal depository insurance or collateral held by the Chief Financial Officer of Florida. In the event of a default by a qualified public depository, all claims for government deposits would be satisfied by the Chief Financial Officer of Florida from the proceeds of federal deposit insurance, pledged collateral of the public depository in default and, if necessary, a pro rata assessment to the other qualified public depositories in the collateral pool. Cash Equivalents Highly liquid investments with maturities of three months or less when purchased are reported as cash equivalents. The funds‟ investments in the County's internal investment pool are reported in the fund financial statements as cash equivalents. For the entity-wide Statement of Net Assets, the primary government‟s investment in the internal investment pool is reported separately from investments held outside the pool. Internal Investment Pool The County maintains an investment pool for substantially all cash and cash equivalents and investments of all funds. All money market investments and participating interest earning investment contracts with a remaining maturity at time of purchase of ninety days or less are recorded at amortized cost plus accrued interest. All other investments are carried at fair value as determined from quoted market prices. Each fund‟s portion of the pool is presented as “cash and cash equivalents”, “investments” or “restricted assets” as appropriate. Earnings are allocated to each fund based on average daily balances of cash and investments. The County considers cash and cash equivalents to be cash on hand, demand deposits, investments and equity in the County‟s cash management internal investment pool. The internal investment pool is reported as a cash equivalent in accordance with GASB 9 footnote 5 and the 2009 GASB Comprehensive Implementation Guide, paragraph 2.13.1. Investments State statues and local ordinances authorize County investments in obligations of the U.S. Government, its agencies and instrumentalities, repurchase agreements, interest-bearing 37 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 time deposits, savings accounts, Florida Prime Investment Pool (formerly known as the Local Government Surplus funds Trust Fund LGIP administered by the State Board of Administration), the Florida Local Government Investment Trust (FLGIT), collateralized mortgage obligations (CMO), certain corporate securities, bankers acceptances, and money market mutual funds. State statues authorize Solid Waste Authority (SWA) investments in the Local Government Surplus Funds Trust Fund (State Board of Administration), interest-bearing time deposits, savings accounts, negotiable direct obligations of or obligations unconditionally guaranteed by the U.S. Government, obligations of the Federal Farm Credit Banks, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Bank or its districts, interest rate swap agreements, and obligations guaranteed by the Government National Mortgage Association and obligations of the Federal National Mortgage Association and mutual funds limited to U.S. Government securities. All investments are reported at fair value except for the following which are reported at amortized cost as permitted by GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools: Florida Prime Investment Pool Money Market Mutual Funds. The following external investment pools are not SEC-registered: The State Board of Administration (SBA) administers the Florida Prime Investment Pool (formerly known as the Local Government Surplus funds Trust Fund LGIP) and the Fund B Surplus Funds Trust Fund (Fund B), both of which are governed by Chapter 19-7 of the Florida Administrative Code and Chapters 218 and 215 of the Florida Statues. The Florida Prime Investment Pool is an external investment pool operated in a manner consistent with the SEC‟s Rule 2a7 of the Investment Company Act of 1940. The Fund B is accounted for as a fluctuating net asset value pool. The Fund B is not subject to participant withdrawal requests. Distributions from Fund B, as determined by the SBA, are effected by transferring eligible cash or securities to the Florida Prime Investment Pool, consistent with the pro rata allocation of pool shareholders of record at the creation of Fund B. One hundred percent of such distributions from Fund B are available as liquid balance within the Florida Prime Investment Pool. The investments in the Florida Prime Investment Pool and Fund B are not insured by FDIC or any other governmental agency. Regulatory oversight of the State Board of Administration is provided by three elected officials who are accountable to the electorate: the Governor of the State of Florida, as Chairman; the Chief Financial Officer of Florida, as Treasurer; and the State Comptroller, as Secretary. External oversight of the State Board of Administration is provided by the Investment Advisory Council which reviews the investments made by the staff of the Board of Administration and makes recommendations to the Board regarding investment policy, strategy, and procedures. Audit oversight is provided by the Florida Auditor General‟s Office. The Florida Local Government Investment Trust (FLGIT) is a local government investment pool developed jointly by the Florida Association of Court Clerks and the 38 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Florida Association of Counties. The FLGIT has no regulatory oversight, but has been recognized by an Internal Revenue Service private letter ruling as a tax-exempt organization, received a Standard and Poor‟s rating and is governed by a six member Board of Trustees. The share price of this investment represents the fair value of the fund‟s underlying investments. E. Accounts and Other Receivables Accounts receivable are recorded net of allowances for bad debts. Allowance for uncollectible receivables is based upon historical trends and the periodic aging of receivables. These allowances relate to the enterprise funds and are not significant. Billings to water utility customers are based on metered consumption which is determined at various dates each month. Estimated unbilled consumption at year-end is recognized as revenue in the Water Utilities Fund. Other receivables include low income housing loans to individuals and developers, a loan to the convention center and a contribution receivable from FAU as part of the Scripps project. F. Inventories and Prepaid Items Inventories consisting primarily of materials and supplies are stated at cost based upon the first-in, first-out method. Purchases of inventories for governmental funds are reported as expenditures in the period purchased, except for the Sheriff, which is accounted for using the consumption method. Inventories for governmental fund types, which use the purchases method, are reported on the governmental funds balance sheet as an asset of the fund with a corresponding reserve against fund balance. Inventories of proprietary type funds are reported as an expense when consumed in the operations of the fund. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Expenditures for insurance and similar services extending over more than one accounting period are accounted for as expenditures of the period of acquisition. G. Capital Assets Property, plant, and equipment and infrastructure assets (such as roads, sidewalks, bridges, and drainage systems) are reported in the applicable governmental or businesstype activities columns of the government-wide financial statements and proprietary fund financial statements. All work in process for the current fiscal year has been capitalized as Construction In Progress as the related projects have not yet been completed. Capital assets are defined as those assets with an initial, individual cost of over $1,000. Contributed capital assets are recorded at their estimated fair value at the time received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. In addition, net interest costs are capitalized on projects during the construction period. Depreciation is calculated using the straight-line method over estimated useful lives as follows: 39 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Asset Classification Buildings, Utility Plants and Systems Furniture, Fixtures and Equipment Improvements Other Than Buildings Infrastructure Estimated Useful Life (In Years) 10-50 2-15 5-20 20-50 In the governmental fund financial statements, the costs associated with the acquisition or construction of capital assets are shown as capital outlay expenditures. Capital assets are not shown on the governmental fund balance sheets. Goodwill is determined based on the difference between the acquisition price and the fair value of all assets acquired. Amortization of goodwill related to the utility system acquisition is also computed on the straight-line method. The Water Utilities Department has two items of goodwill: 1.) the goodwill resulting from the acquisition of the Village of Royal Palm Beach‟s Utility System is amortized over 30 years which represents the period the bonds issued to fund the acquisition will be outstanding, and 2.) the goodwill resulting from the acquisition of the Indian Trail Improvement District Utility System is amortized over 40 years. H. Compensated Absences In accordance with GASB Statement No. 16, Accounting for Compensated Absences, the County accrues a liability for compensated absences, as well as certain other salaryrelated costs associated with the payment of compensated absences. Vacation leave is accrued as a liability as the benefits are earned by the employees. Sick leave is also accrued as a liability as the benefits are earned by the employees, but only to the extent that it is probable that the County will compensate the employees for the benefits through cash payments at termination or retirement. Under the accrual basis of accounting used in the government-wide financial statements and the separate proprietary fund financial statements, the entire compensated absences liability (long-term and short-term) is reported when earned as described above. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignation and retirements. I. Landfill Closure and Post-closure Care Costs In accordance with governmental accounting standards, the County, as a municipal solid waste land owner, records a current expense and the related long-term liability for certain future landfill closure and Post-closure care costs for landfills still accepting solid waste. The portion of these future costs currently recognized is based on the amount of landfill capacity consumed as of each balance sheet date. The County also records the current estimated liability for remediation and monitoring costs for landfills that closed on or before October 9, 1991. More information on these expenses and related long-term liabilities is disclosed in the Landfill Closure and Post-closure Care Costs Note. 40 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 J. Deferred Issuance Costs, Bond Discounts, Premiums and Deferred Amounts on Refunding At the government-wide level and in the proprietary funds, expenses incurred in connection with the issuance of long-term debt, as well as bond discounts, premiums and deferred amounts on refunding, are deferred and amortized over the term of the related financing using a method that approximates the effective interest method. For governmental funds, these costs are considered to be period costs. K. Self-Insurance The County maintains a Risk Management (Workers‟ Compensation) self-insurance program, a Casualty self-insurance program, and an Employee health self-insurance program which are accounted for as internal service funds. The County has elected to essentially self-insure itself for health benefits to County employees and employees of component units of the County electing to participate in the plan. The plan covers approximately 4,900 participants. The three (3) self-insurance programs are designed to be self-sustaining through actuarially determined premiums established annually to cover expected claims, administration and a margin for unexpected losses or expenses. L. Financial Reporting for Government-wide and Proprietary Funds Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Government Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitation. The government has elected not to follow subsequent private-sector guidance. M. Pension and Other Post-Employment Benefits Disclosure The County applies GASB Statement No. 27, Accounting for Pensions by State and Local Government Employers, for the measurement, recognition, and display of pension expenditures or expenses as discussed in a subsequent note. The County applies GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, for the measurement, recognition, and display of OPEB expenditures or expenses, liabilities and assets as discussed in a subsequent note. N. Elimination of Internal Activity In the government-wide Statement of Activities, interfund activity, such as transfers in and out as well as transfers within the Internal Service Funds and within the Governmental Activities category is eliminated. Interfund activity between governmental and business-type activities is not eliminated. Interfund services provided and used 41 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 between functions are not eliminated because removing interfund services would distort the functional expenses presented in the Statement of Activities. O. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. P. Budgets BOARD OF COUNTY COMMISSIONERS Pursuant to Chapter 129, Florida Statutes, General Budget Policies, the following procedures are followed by the Board of County Commissioners in establishing, adopting and maintaining the operating budget. 1. On or before July 15, the County Administrator, through the Office of Financial Management and Budget (OFMB) submits to the Board of County Commissioners a tentative budget for the fiscal year commencing the following October 1. This is a detailed plan outlining all programs and estimated departmental revenues and expenditures for the upcoming year. 2. Taxpayers are informed of the proposed budget and tentative millage rates through advertising and public hearings which are held to elicit taxpayer comments. 3. The budget is legally adopted through Board of County Commission action for the fiscal year beginning October 1. 4. The Board at any time within a fiscal year may amend a budget for that year as follows: a. Appropriations for expenditures in any fund may be decreased and other appropriations in the same fund correspondingly increased by action recorded in the minutes, provided that the total of the appropriations of the fund are not changed. The Board of County Commissioners, however, may establish procedures by which the designated budget officer may authorize certain intradepartmental budget amendments, provided that the total appropriation of the department shall not be changed. b. Appropriations from reserves may be made to increase appropriations by resolution of the Board, but no expenditures shall be directly charged to any reserve. c. A receipt from a source not anticipated in the budget and received for a particular purpose including, but not limited to, grants, donations, gifts or reimbursements for damages may, by resolution of the Board recorded in its minutes, be appropriated and expended for that purpose, in addition to 42 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 the appropriations and expenditures provided for in the budget. Such receipts and appropriations shall be added to the budget in the proper fund. During fiscal year 2009, supplemental appropriations amounted to a net increase of $612,298,058, or approximately 15.3% of the original budget. 5. It is unlawful for the Board to expend or contract for the expenditures in any fiscal year more than the amount budgeted in each individual fund’s budget, and in no case shall the total appropriations of any budget be exceeded. In addition, to comply with the above statutory requirements, the Board of County Commissioners has elected to adopt management controls and approved guidelines, which provide for the budget to be controlled at a detail level greater than the statutory level of control. This control (effective legal level) is maintained at the department or fund level. A separate detailed report providing this information is available for inspection at OFMB. Annual budgets are legally adopted for all governmental and proprietary fund types. Budgetary comparisons presented herein are on a basis consistent with GAAP. CLERK OF CIRCUIT COURT Chapter 218.35, Florida Statutes, governs the preparation, adoption and administration of the Clerk & Comptroller’s (the Clerk) annual budget. The Clerk, as county fee officer, establishes an annual budget for her office, which clearly reflects the revenues available to the office and the functions for which the money is to be expended. The Clerk, functioning in her capacity as Clerk of the Circuit and County Courts and as Clerk of the Board of County Commissioners, prepares her budget in two parts: 1. The budget for funds necessary to perform court-related functions as provided for in Florida Statute 28.36, which details the methodologies used to apportion costs between court-related and non-court-related functions performed by the clerk. 2. The budget relating to the requirements of the Clerk as Clerk of the Board of County Commissioners, County Auditor, and Custodian or Treasurer of all county funds and other county related duties. SHERIFF Chapter 30.49, Florida Statutes, governs the preparation, adoption and administration of the Sheriff’s annual budget. By May 1 each year, the Sheriff shall certify to the Board a proposed budget of expenditures for performing the duties of his office for the ensuing fiscal year. The Sheriff’s budget is legally adopted by Board of County Commission action for the fiscal year beginning October 1. TAX COLLECTOR AND PROPERTY APPRAISER Chapter 195.087, Florida Statutes, governs the preparation, adoption and administration of the budgets of the Tax Collector and Property Appraiser. On or before a legally designated date each year, the Tax Collector and the Property Appraiser shall submit to 43 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 the Florida Department of Revenue a budget for the ensuing fiscal year. A copy of such budget shall be furnished at the same time to the Board of County Commissioners. Final approval of the budgets is given by the Florida Department of Revenue. SUPERVISOR OF ELECTIONS Chapter 129, (sections .02 and .202), Florida Statutes, governs the preparation, adoption and administration of the budget of the Supervisor of Elections. On or before June 1 of each year, the Supervisor of Elections shall submit to the Board of County Commissioners a tentative budget for the ensuing fiscal year. However, the Board of County Commissioners of Palm Beach County, by resolution R95-1195, requires the tentative budget to be submitted by May 1 of each year. Q. Encumbrances The County uses encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded to reserve that portion of the applicable appropriation. Encumbrances represent the estimated amount of expenditures ultimately to result if unperformed contracts and open purchase orders are completed. Since appropriations lapse at year end, it is the County’s policy to liquidate open encumbrances and re-appropriate such amounts in the beginning of the next fiscal year. R. Designations of Unreserved Fund Balances Unreserved fund balances as of September 30, 2009, have the following significant designations: Designation General Fund: Encumbrances Contingency Other Operating Programs Special Revenue Funds: Encumbrances Fire Rescue Long-Term Disability Capital Projects Funds: Encumbrances $ 1,049,184 20,000,000 530,664 Amount 46,395,109 15,018,073 302,109,658 Amounts designated for encumbrances represent outstanding purchase orders, contracts, and other commitments at year-end, which were re-appropriated at the beginning of fiscal year 2010, in accordance with County policy. The amount designated for contingencies represents the portion of fund balance that was designated by the Board of County Commissioners for unforeseen expenditures or potential revenue shortfalls in fiscal year 2010. 44 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 In addition to these designations, unreserved Fund Balances in the Special Revenue Funds and Capital Project Funds are usually required to be expended for specific purposes and are not available for general county-wide purposes. S. Operating versus Non-operating Revenue and Expenses 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 the 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. Operating revenues for the Enterprise Funds include water and wastewater service fees, airport fees and charges and solid waste refuse fees. For the Internal Service funds, operating revenues include charges to other departments for various maintenance, communications and insurance services. Operating expenses for the Enterprise and Internal Service Funds include costs of sales and services, administrative fees, insurance payments and depreciation. All revenues and expenses not meeting this definition are considered non-operating items. T. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the County‟s policy to use restricted resources first, then unrestricted resources as they are needed. U. Fund Equity and Net Assets Fund Equity The County has established certain reservations of fund equity to indicate the portion of fund balance that is not appropriable for expenditure or is legally segregated for a specific future use. Reservations of fund balance are reported on the Balance Sheet. Net Assets Invested in capital assets, net of related debt is that portion of net assets that relates to the County‟s capital assets, reduced by debt outstanding used to purchase or construct the capital assets. The related debt is reduced by any unspent proceeds that are outstanding at fiscal year-end. Restricted net assets is that portion of net assets that has been restricted from general use by external parties (creditors, grantors, contributors, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation. The restricted component of net assets represents restricted assets reduced by liabilities related to those assets. The entity-wide statement of net assets (government activities) reports $791,216,501 of restricted net assets, of which $315,682,167 is restricted by enabling legislation. 45 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 V. Property Tax Taxes in Palm Beach County are levied by the Board of County Commissioners for the County. The millage levies are determined on the basis of estimates or revenue needs and the total taxable valuations within the jurisdiction of the Board of County Commissioners. No aggregate ad valorem tax millage (in excess of 10 mills on the dollar) is levied against property of the County as specified in Chapter 200.071, Florida Statutes. Each year the total taxable valuation is established by the County Property Appraiser and the list of property assessments is submitted to the State Department of Revenue for approval. County ad valorem taxes are a lien on the property against which they are assessed from January 1 of the year of assessment until paid or barred by operation of law (statute of limitations). Taxes are levied on October 1, become due and payable on November 1 of each year, or as soon thereafter as the assessment roll is opened for collection, and are delinquent on April 1 of the following year. Pursuant to Florida law, the Tax Collector advertises and sells tax certificates on all real property for which there are unpaid taxes. Accordingly, there is no property taxes receivable as of September 30, 2009. For the 2008 tax roll year, the assessment roll was opened for collection on November 1, 2008, and discounts for payment prior to April 1, 2009, were determined as follows: 4% 3% 2% 1% W. Interest Costs if paid in November 2008 if paid in December 2008 if paid in January 2009 if paid in Februrary 2009 Interest costs are expensed or capitalized as required by the Interest Topic 835, Subtopic 20, Section 30 “Amount of Interest to be Capitalized” of the FASB Accounting Standards Codification. Interest cost incurred by proprietary funds for the fiscal year ended September 30, 2009 amounted to $29,918,060, of which $1,118,869 was capitalized. 2. CASH AND INVESTMENTS Additional cash and investment information is provided in Note 1, paragraph D (Summary of Significant Accounting Policies - Cash and Investments). At September 30, 2009 the cash and investments consisted of the following: 46 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Bank Balance 165,284,712 Carrying Value 138,018,094 543,212 2,450,546,297 $ 2,589,107,603 $ Deposits in Financial Institutions Cash on hand Investments Total $ Cash and investments are reported in the Statement of Net Assets as follows: Primary Government $ 2,513,541,263 $ 1,057,966 $ 2,514,599,229 $ Agency Funds Total 74,508,374 $ 2,588,049,637 1,057,966 74,508,374 $ 2,589,107,603 Cash and cash equivalents Investments Total cash & investments As of September 30, 2009, the primary government had the following investments, subject to interest rate risk using the segmented-time distribution method: Investment Type Fair Value Investments subject to interest rate risk Money Market Mutual Funds Adjustable Rate Securities Mortgage Backed Securities Collateralized Mortgage Obligations Debenture Participation Certificates Florida Prime Investment Pool (SBA) Callable Bonds Indexed Amortization Notes Corporate Notes Florida Local Govt Investment Trust Step Rate Bonds Foreign Government Bonds Fund B Surplus Funds Trust Fund (SBA) $ 575,794,670 472,468,052 376,142,741 338,062,788 201,368,531 200,272,576 126,490,980 53,146,920 46,943,423 28,495,380 25,007,925 5,054,612 1,297,699 $ Less Than 1 Year 127,148,346 218,104 37,199,855 163,057,085 1,853,043 25,007,925 5,054,612 Maturity in Years 1 Year but Less Than 3 Years $ 464,602,828 313,670,931 35,173,724 201,368,531 29,720,164 53,146,920 21,617,340 28,495,380 $ 3 Years but Less Than 10 Years 448,646,324 7,647,120 25,271,955 139,831,979 198,419,533 96,770,816 25,326,083 1,297,699 943,211,509 $ 2,450,546,297 $ 359,538,970 $ 1,147,795,818 $ Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with the County Investment Policy, the Clerk & Comptroller manages the County‟s internal investment pool‟s exposure to declines in fair values by managing overall effective duration appropriate to the risk tolerance in meeting stated objectives. The Policy states that at the time of purchase, the County‟s investments must have a final maturity or average life of 10 years or less. The County‟s Investment Policy limits investments in collateralized mortgage obligations (CMO) to 20% of total value of the County‟s internal investment pool. Investments in IO (interest only), PO (principal only), inverse floaters, other volatile CMO types, and corporate convertible 47 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 securities are all prohibited. All CMO issues must pass the Federal Financial Institutions Examination Council (FFIEC) High Risk Security Test on a quarterly basis, or as specified in any Trust Indenture. In accordance with its investment policy, the Solid Waste Authority manages its exposure to declines in fair values by limiting U.S. Treasury obligations/instrumentalities to maturities of no more than 5 years, U.S. Federal Agency securities to maturities of no more than 3 years and interest rate swap agreements to no more than 10 years. Credit Risk Credit risk is the risk that an issuer will not fulfill its obligations. Investments U.S Government Sponsored Enterprises (GSE) Money Market Mutual Funds U.S. Treasuries & Guaranteed Agencies Florida Prime Investment Pool Corporate Securities Florida Local Govt Investment Trust (SBA) Corporate Securities Foreign Government Bonds Fund B Surplus Funds Trust Fund (SBA) $ Fair Value 1,061,291,681 575,794,670 531,396,256 200,272,576 37,262,653 28,495,380 9,680,770 5,054,612 1,297,699 $2,450,546,297 Percentage Standard & of Total Poor's Investment Portfolio Rating Service 43.2% AAA 23.5% AAAm 21.7% U.S. Guarantee 8.2% AAAm AA+ 1.5% 1.2% AAAf A 0.4% A0.2% Not rated 0.1% 100.0% No rating by Moody's or Fitch was lower then Standard and Poor's. Some securities were not rated by Moody's and Fitch. In accordance with the County’s Investment Policy for the internal investment pool, investments in commercial paper and bankers acceptances are limited to ratings of A-1 or P-1 or higher by Standard and Poor’s and Moody’s respectively. Investments in corporate securities are limited to ratings of AA or higher by Standard and Poor’s and Moody’s. Corporate securities are limited to no more than 20% of the investment pool’s total market value, excluding commercial paper, which is limited to 25% of the total market value. No-load money market mutual funds backed by government bonds are allowable if rated in the highest rating category of a Nationally Recognized Statistical Rating Organization (NRSRO). In accordance with the Solid Waste Authority’s investment policy, investments are limited to the State of Florida Local Government Surplus Funds Trust Fund (an external 48 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 2a7-like pool), U.S Treasury and Instrumentality obligations, U.S. Agency securities and investments that are fully collateralized or secured. Custodial Credit Risk- Investments This type of risk would arise in the event of the failure of a custodian of County investments, after which the government would not be able to recover the value of its investments that are in the possession of the third party custodian. To guard against this risk, the County‟s investment policy for the internal investment pool requires that all securities be insured or registered in the name of the County and held by a third party custodial institution, with capital and surplus stock of at least $500 million and a separate custody account at the Federal Reserve Bank (FED) specifically designated by the FED as restricted for the safekeeping of the member-bank‟s customerowned securities only. All securities purchased or sold are transferred “delivery versus payment” (D.V.P.) or “payment versus delivery” to ensure that funds or securities are not released until all criteria relating to the specific transactions are met. The Solid Waste Authority‟s investment policy requires that all securities be registered in the name of the SWA and held by a third party safekeeping institution. Concentration Risk Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Investment Issuer Federal Home Loan Mortgage Company (Freddie Mac) $ Florida National Mortgage Association (Fannie Mae) Government National Mortgage Association (Ginnie Mae) Fidelity Institute Treasury Money Market Fund Florida State Board of Administration Other combined- less then 2% per issuer Dreyfus Government Money Market Fund U.S. Small Business Administration AIM Institutional Money Market Fund Small Business Investment Companies Fair Value 509,035,720 497,283,710 292,377,689 216,450,677 201,570,275 186,219,073 183,963,065 156,606,888 124,627,521 82,411,679 Percentage of Total 20.8% 20.3% 11.9% 8.8% 8.2% 7.6% 7.5% 6.4% 5.1% 3.4% 100.0% $ 2,450,546,297 The County‟s investment policy for the internal investment pool limits investments in corporate securities to 1% of total pool market value per single issuer. In accordance with the Solid Waste Authority‟s investment policy, securities of a single issuer are limited to 5% of the portfolio‟s fair value except for U.S. Treasuries, U.S. Government instrumentalities and U.S. Federal Agencies which are limited to 10%. 49 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interest rate swap agreements and GIC agreements are limited to 50% of the portfolio’s fair value. Foreign Currency Risk: Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment. There was no exposure to foreign currency risk. The County was invested in foreign bonds denominated in U.S. dollars. COMPONENT UNITS: Westgate/Belvedere Homes Community Redevelopment Agency (CRA) As of September 30, 2009, the carrying value of deposits with financial institutions was $1,342,917 and the bank balance was $1,342,416. The CRA was invested in the Local Government Surplus Funds Trust Fund (SBA) Pool A with a fair value of $390,144 and $14,576 in Pool B. Pool A is an external 2a7-like investment pool which is not SECregistered. See Note 1 paragraph D (Summary of Significant Accounting Policies) for additional information. Interest rate risk: The weighted average maturity for the underlying investments of the SBA pool A is 33 days and pool B is 6.7 years as of September 30, 2009. CRA has no formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit risk: The SBA pool A is rated AAAm by Standard & Poor and pool B is not rated. The CRA has no formal investment policy that limits investment credit risk. Custodial credit risk- investments: The CRA has no formal investment policy that limits custodial credit risk. Concentration risk: 100% of investments are invested in the SBA. The CRA has no formal investment policy that limits investment concentration risk. Palm Beach County Housing Finance Authority (HFA) At September 30, 2009 HFA’s equity in Palm Beach County’s internal investment pool was $6,033,854 which is included with other primary government receivables in the Statement of Net Assets in “Due from primary government”. 50 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 As of September 30, 2009, HFA had the following investments: Percent of Total Fair Value Investments $ 185,000 4.6% 568,940 568,940 600,973 2,071,350 14.2% 14.2% 15.0% 51.9% Standard & Poor's Investment Rating Service AAAm AAAm AAAm AAAm Guaranteed by U.S. Govt Not rated AAAm Investments Fidelity U.S. Treasury Portfolio Money Market Mutual Fund Federated Government Obligations TaxManaged Money Market Mutual Fund Fidelity Governmental Money Market Mutual Fund Goldman Sachs Financial Square Government Money Market Mutual Fund Government National Mortgage Association Bond (Ginnie Mae) Local Government Surplus Funds Trust Fund (State Board of Administration) Fund B Local Government Surplus Funds Trust Fund (State Board of Administration) Florida Prime Total investments Maturity Less than 90 days Less than 90 days Less than 90 days Less than 90 days Various maturing between 11/15/2024 thru 2/20/2031 6.87 years 33 days 1,159 5,986 $4,002,348 0.0% 0.1% 100.0% Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Authority's investment policy limits the maturity of investments to match cash and anticipated cash flow requirements. Credit Risk: Credit risk is the risk that an issuer will not fulfill its obligations. The Authority's investment policy addresses credit risk by limiting allowable investments to the State of Florida Local Government Surplus Funds Trust Fund, deposits with a financial institution meeting the requirements of a Florida Qualified Public Depository, and securities guaranteed by the U.S. Government. Custodial Credit Risk: Custodial credit risk is defined as the risk that the Authority may not recover the securities held by another party in the event of a financial failure. The Authority's investment policy for custodial credit risk requires all investment securities to be held in the Authority's name by a third party safekeeping institution. 51 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Concentration of Credit Risk: Concentration of credit risk is defined as the risk of loss attributed to the magnitude of an investment in a single issuer. The Authority's investment policy addresses the concentration of credit risk by limiting the maximum amount that may be invested in any one issuer. Metropolitan Planning Organization (MPO) At September 30, 2009 MPO’s equity in Palm Beach County’s internal investment pool was $246,804 which is included with other primary government receivables in the Statement of Net Assets in “Due from primary government”. Interest rate risk: The County’s internal investment pool had an effective duration of 2.2 years as of September 30, 2009. MPO has no formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit risk: The County’s internal investment pool is rated AAAf by Standard & Poor’s on September 30, 2009. MPO has no formal investment policy that limits investment credit risk. Custodial credit risk- investments: The MPO has no formal investment policy that limits custodial credit risk. Concentration risk: 100% of investments are invested in the County’s internal investment pool. MPO has no formal investment policy that limits investment concentration risk. 52 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 3. RELATED PARTY TRANSACTIONS Various departments within the County provide goods, administration, public safety, maintenance and various other services to other operating departments. Charges for these services are determined using direct and indirect cost allocation methods or amounts determined based upon direct negotiations between the related parties. The most significant of these transactions involves the reimbursement of indirect costs in accordance with the indirect cost plan. Accordingly, the reimbursement of these indirect costs in fiscal year 2009 was $18,253,249. 4. CAPITAL ASSETS A summary of changes in capital assets follows: Primary Government Beginning Balance Governmental Activities: Non-depreciable assets: Land Construction In Progress Total non-depreciable assets Depreciable assets: Buildings and improvements Improvements other than buildings Equipment Infrastructure Total depreciable assets Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Total governmental capital assets, net Additions Deductions Ending Balance $ 737,882,095 331,066,388 1,068,948,483 $ 5,686,592 168,044,474 173,731,066 $ (2,373,052) $ 741,195,635 (54,564,425) 444,546,437 (56,937,477) 1,185,742,072 810,560,047 299,524,448 529,464,504 1,206,997,493 2,846,546,492 2,524,070 547,027 63,986,748 45,796,332 112,854,177 (31,426) (25,188) (37,190,654) (37,247,268) 813,052,691 300,046,287 556,260,598 1,252,793,825 2,922,153,401 (249,898,668) (161,145,097) (341,331,390) (939,037,989) (1,691,413,144) 1,155,133,348 $2,224,081,831 (21,696,447) (9,362,344) (53,934,358) (25,287,860) (110,281,009) 2,573,168 $ 176,304,234 9,588 4,877 35,909,236 35,923,701 (1,323,567) (271,585,527) (170,502,564) (359,356,512) (964,325,849) (1,765,770,452) 1,156,382,949 $ (58,261,044) $ 2,342,125,021 53 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Beginning Balance Business-type Activities: Non-depreciable assets: Land Construction In Progress Total non-depreciable assets Depreciable assets: Buildings and improvements Improvements other than buildings Equipment Intangible - easement rights Leasehold interest Goodwill Total depreciable assets Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Equipment Intangible - easement rights Leasehold interest Goodwill Total accumulated depreciation Total capital assets, being depreciated, net Total business-type capital assets, net $ Ending Balance Additions Deductions $ 161,538,058 143,351,952 304,890,010 $ 364,415 108,498,556 108,862,971 $ (169,831) $ (113,019,316) (113,189,147) 161,732,642 138,831,192 300,563,834 668,312,254 1,385,071,127 256,291,470 15,415,813 12,010,002 7,131,703 2,344,232,369 78,550,555 40,705,853 49,200,095 110,665 168,567,168 (2,046,189) (563,337) (12,695,619) (15,305,145) 744,816,620 1,425,213,643 292,795,946 15,415,813 12,120,667 7,131,703 2,497,494,392 (262,812,884) (481,221,744) (155,129,700) (2,471,548) (2,954,555) (479,846) (905,070,277) 1,439,162,092 1,744,052,102 $ (25,158,005) (38,004,461) (22,978,601) (343,874) (1,165,098) (190,165) (87,840,204) 80,726,964 189,589,935 $ 1,701,151 563,337 11,688,122 13,952,610 (1,352,535) (114,541,682) $ (286,269,738) (518,662,868) (166,420,179) (2,815,422) (4,119,653) (670,011) (978,957,871) 1,518,536,521 1,819,100,355 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation In addition, depreciation on capital assets held by the County‟s internal service funds is charged to the various functions based on their usage of the assets. Total depreciation expense - governmental activities Adjustments to accumulated depreciation Total increases to accumulated depreciation Business-type Activities: Water Utilities Department Department of Airports Solid Waste Authority Total depreciation expense - business-type activities $ $ 41,289,228 24,207,560 22,343,416 87,840,204 $ $ 18,779,664 29,511,438 849,106 32,006,862 242,457 1,680,437 15,824,216 11,304,871 110,199,051 81,958 110,281,009 54 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Discretely presented component unit A summary of changes in capital assets for the Westgate/Belvedere Homes Community Redevelopment Agency follows: Beginning Balance Non-depreciable assets: Land Total non-depreciable assets Depreciable assets: Equipment Infrastructure Total depreciable assets Less accumulated depreciation for: Equipment Total accumulated depreciation Total capital assets, being depreciated, net Total component unit capital assets, net $ 2,429,820 2,429,820 Ending Balance $ 3,451,275 3,451,275 Additions $ 1,021,455 1,021,455 Deductions $ - 16,303 334,904 351,207 - (345) (345) 15,958 334,904 350,862 (19,270) (19,270) 331,937 $ 2,761,757 (9,966) (9,966) (9,966) $ 1,011,489 $ 196 196 (149) (149) (29,040) (29,040) 321,822 $ 3,773,097 5. INTERFUND TRANSFERS IN AND OUT Interfund transfers in and out during fiscal year 2009 were as follows: Interfund Transfers In Governmental Funds: Major Governmental Funds General Fund Interfund Transfers Out Amount Sheriff Special Revenue Fund Road Program Capital Projects Law Enforcement Grants Special Revenue Fund Other Special Revenue Funds Clerk & Comptroller Special Revenue Fund Community & Social Development Special Revenue Fund Supervisor of Elections Special Revenue Fund Parks and Recreation Capital Projects $ 17,388,879 6,719,999 453,109 36,731,443 492,167 279,194 855,558 750,000 $ 63,670,349 Fire Rescue Special Revenue Fund General Fund Community & Social Development Special Revenue Fund Other Special Revenue Funds $ 150,000 70,554 6,589,000 $ Sheriff Special Revenue Fund General Fund Law Enforcement Grants Special Revenue Fund Other Special Revenue Funds Criminal Justice Capital Projects 6,809,554 $ 474,196,818 4,192,426 934,845 2,013,134 $ 481,337,223 55 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interfund Transfers In General Government Capital Projects Interfund Transfers Out General Fund Sheriff Special Revenue Fund Tourist Development Special Revenue Fund Palm Tran Special Revenue Fund Other Special Revenue Funds Revenue Bonds Debt Service Fund Other Financing Debt Service Fund Criminal Justice Capital Projects Environmental Lands Capital Projects Fire Rescue Capital Projects Parks & Recreation Capital Projects Airports Amount $ 14,557,538 3,166,494 10,000,000 3,341,018 840,241 948,756 227,147 900,001 60 2,098,164 241 1,100,000 $ 37,179,660 Road Program Capital Projects General Fund County Transportation Trust Special Revenue Fund $ $ 750,000 66,200 816,200 Nonmajor Governmental Funds Nonmajor Special Revenue Funds Law Enforcement Grants Special Revenue Fund General Fund General Government Capital Projects $ County Transportation Trust Special Revenue Fund General Fund Road Program Capital Projects $ 614,063 50,000 664,063 $ 15,263,888 15,110,532 $ 30,374,420 Municipal Service Taxing District Special Revenue Fund General Fund General Government Capital Projects Fleet Management Combined Insurance Fund $ 118,203 1,280,000 156,782 251,797 $ Community & Social Development Special Revenue Fund General Fund General Government Capital Projects 1,806,782 $ 12,364,685 100,000 $ 12,464,685 Palm Tran Special Revenue Fund General Fund Road Program Capital Projects $ 24,786,263 14,500,000 $ 39,286,263 Other Special Revenue Funds General Fund General Government Capital Projects Law Enforcement Grants Special Revenue Fund $ 5,396,949 563,372 32,144 $ 5,992,465 56 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interfund Transfers In Clerk & Comptroller Special Revenue Fund Interfund Transfers Out General Fund Amount $ 16,696,435 $ 16,696,435 Supervisor of Elections Special Revenue Fund General Fund $ $ 9,997,168 9,997,168 Nonmajor Debt Service Funds Revenue Bonds Debt Service Fund General Fund General Government Capital Projects Tourist Development Special Revenue Fund Other Special Revenue Funds Other Financing Debt Service Fund $ 94,294 14,293,046 7,396,146 66,073,107 2,557,451 $ 90,414,044 Other Financing Debt Service Fund Other Special Revenue Funds General Government Capital Projects Environmental Lands Capital Projects $ 4,000,885 48,000,000 54,719 $ 52,055,604 Nonmajor Capital Projects Funds Environmental Lands Capital Projects General Fund General Government Capital Projects Tourist Development Special Revenue Fund Other Special Revenue Funds $ 1,000,000 651,863 1,726,816 9,639,282 $ 13,017,961 Fire Rescue Capital Projects Fire Rescue Special Revenue Fund $ $ 6,200,000 6,200,000 Libraries Capital Projects Library Taxing District Special Revenue Fund $ $ 4,269,583 4,269,583 Parks & Recreation Capital Projects General Fund $ $ 1,286,000 1,286,000 Total Nonmajor Governmental Funds $ 284,525,473 Proprietary Funds: Nonmajor Internal Service Funds ISS General Fund $ $ Total Internal Service Funds 1,859,063 1,859,063 $ 1,859,063 Total Interfund Transfers Primary Government $ 876,197,522 57 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Transfers are used to: (1) move revenues from within the fund which a statute or budget requires them to be collected to a fund from which a statute or budget requires them to be expended; (2) move receipts which are restricted to debt service from the funds where the receipts are collected into the debt service fund, as debt service payments become due; (3) provide matching funds for the County‟s portion of grant agreements; (4) use and transfer unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and; (5) provide funding for various capital projects by means of transfers. In addition, a $4,269,583 transfer was made from the County Library Fund to the Library Expansion Program Fund for capital projects approved by the Board. During the fiscal year ended September 30, 2009, the Department of Airports transferred $1,100,000 to the Public Building Improvement Fund for a capital project approved by the Board related to improvements made for the Sheriff‟s Hanger. 6. RETIREMENT PLANS FLORIDA RETIREMENT SYSTEM Plan Description - The County participates in the Florida Retirement System (FRS), a non-contributory, cost-sharing, multi-employer, public employee retirement system administered by the Florida Department of Management Services, Division of Retirement. The FRS was created December 1, 1970. FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. These benefits are established by Florida Statutes, Chapter 121, and may only be amended by the Florida Legislature. The Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for FRS. The report may be obtained by writing to the Florida Division of Retirement, ATTN: Research, Education & Policy Section, P. O. Box 9000, Tallahassee, Florida 32315-9000, calling 1-850-4885706, or accessing their website at: http://dms.myflorida.com. Beginning July 1, 2002, the FRS became one plan with two primary options, a defined benefit option known as the FRS Pension Plan and an alternative defined contribution option known as the FRS Investment Plan. The two options are described in detail below. The FRS Pension Plan provides for vesting of benefits after 6 years of creditable service. Benefits are based on age, average final compensation and years-of-service credit. Average final compensation is the average of the five highest fiscal years of earnings. Members are eligible for normal retirement when they have met the minimum requirements established by their membership class. Regular Class members are eligible for normal retirement if they are vested and age 62 or if they have 30 years of creditable 58 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 service regardless of age. Early retirement may be taken any time after vesting. However, there is a 5% reduction of benefits for each year prior to normal retirement age or date. The percentage level of employees‟ payroll contribution rates is determined using the frozen entry age actuarial cost method. Beginning July 1, 1998, the FRS implemented the Deferred Retirement Option Program (DROP), which is a program within the FRS Pension Plan that allows members to retire without terminating their employment for up to five years while their retirement benefits accumulate and earn interest compounded monthly at an effective annual rate of 6.5%. Members may participate in DROP when they are vested and have reached their normal retirement date. When the DROP period ends, members must terminate employment. At that time, members will receive their accumulated DROP benefits and begin receiving their monthly retirement benefit. The FRS Investment Plan, formally created as the Public Employee Optional Retirement Program (PEORP), is a participant-directed 401(a) program selected by employees in lieu of participation in the defined benefit option of the Florida Retirement System. Benefits accrue in individual accounts that are participant-directed, portable, and funded by employer contributions. Participants and beneficiaries bear the investment risks that result when they exercise control over investments in their accounts. The Investment Plan offers a diversified mix of low-cost investment options that span the risk-return spectrum and give participants the opportunity to accumulate retirement benefits. Members are vested after completing one year of creditable service. Funding Policy - The contribution requirements of the County are established and may be amended by the Florida Legislature. The County‟s contributions to FRS for the years ended September 30, 2009, 2008, and 2007 were $99.7 million, $94.4 million, and $87.9 million, respectively, equal to the required contributions for each year. The following membership classes and rates, which apply to both the FRS Pension Plan and the FRS Investment Plan, were in effect at September 30, 2009: Membership Class Regular Special Risk Judges Legislators Governor/Lieutenant Governor/Cabinet State Attorney/Public Defender County, City, Special District Elected Officers Special Risk Administrative Support IFAS Supplemental Senior Management Deferred Retirement Option Program Rates 9.85% 20.92% 19.56% 14.48% 14.48% 14.48% 16.53% 12.55% 18.75% 13.12% 10.91% 59 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 PALM TRAN, INC. – DEFINED BENEFIT PLAN Plan Description – The Palm Tran, Inc. – Amalgamated Transit Union Local 1577 (Palm Tran) pension plan (the Plan) is a mandatory contribution, single-employer, defined benefit retirement program administered by the Pension Resource Center. The Plan provides retirement, disability, and death benefits to plan members and beneficiaries. The Board of Trustees (the Board) of the Palm Tran pension plan has the authority to establish and amend benefit provisions. Palm Tran issues a stand-alone, publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the plan administrator at Pension Resource Center, 4360 Northlake Blvd., Suite 206, Palm Beach Gardens, Florida 33410 or calling 1-561-624-3277 or accessing their website at: www.resourcecenters.com. Since the County has no fiduciary responsibility for this plan, it is not included in these financial statements. Funding Policy – The contribution requirements of plan members and Palm Tran, Inc. are established by the Pension Trust Agreement and may be amended by the Board. Plan members are required to contribute 2.5% of their annual covered payroll. Palm Tran, Inc. is required to contribute 13% of annual covered payroll. Annual Pension Cost and Net Pension Obligation – Per the actuarial valuation, the annual pension cost and net pension obligation as of December 31, 2008 were as follows: Annual required contribution (ARC) Interest on net pension obligation Adjustment to ARC Annual pension cost Contributions made Increase (decrease) in net pension obligation Net pension obligation beginning of year Net pension obligation end of year $ $ 3,527,501 3,527,501 (3,275,495) 252,006 252,006 Three-Year Trend Information Fiscal Year Ending 12/31/06 12/31/07 12/31/08 Annual Pension Cost (APC) $2,909,900 3,272,841 3,527,501 Percentage of APC Contributed 100% 100 93 Net Pension Obligation $ 252,006 Funded Status and Funding Progress – As of January 1, 2009, the most recent actuarial valuation date, the plan was 65.6% funded. The actuarial accrued liability for benefits was $68.3 million, and the actuarial value of assets was $44.8 million, resulting in an 60 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 unfunded actuarial accrued liability (UAAL) of $23.5 million. The covered payroll (annual payroll of active employees covered by the plan) was $24.6 million, and the ratio of the UAAL to the covered payroll was 95.5%. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions – In the January 1, 2009 actuarial valuation, the Entry Age Normal actuarial cost method was used. The actuarial assumptions included (a) 8.0% investment rate of return and (b) projected salary increases ranging from 5.0% to 12.5% per year. Both (a) and (b) included an inflation component of 4.0% with no cost-of-living adjustments. The projection of benefits for financial accounting purposes does not explicitly incorporate the potential effects of the 13% limitation on Palm Tran‟s contribution rate disclosed above under “Funding Policy”. The actuarial value of assets was determined using the 5-year Smoothed Market asset valuation method. The UAAL is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at January 1, 2009 was 30 years. LANTANA FIREFIGHTER’S – DEFINED BENEFIT/CONTRIBUTION PLAN Plan Description – The Lantana Firefighter‟s Pension Fund (LFPF) is a combined defined benefit and defined contribution pension plan covering Town of Lantana (Town) fire fighters employed by Palm Beach County (County). LFPF is governed by a Board of Trustees made up of representatives of the firefighters and the Town. It provides a defined benefit retirement annuity to retiring participants and also provides a defined contribution retirement benefit in the form of share accounts, payable upon retirement, death or disability. LFPF issues a stand-alone, publicly available financial report that includes financial statements and required supplementary information. The County does not perform the investment function or have significant administrative involvement in the plan. The report may be obtained by writing to the plan administrator, Pension Resource Center, at 4360 Northlake Blvd., Suite 206, Palm Beach Gardens, Florida 33410 or calling 1-561-624-3277 or accessing their website at: www.resourcecenters.com. Since the County has no fiduciary responsibility for this plan, it is not included in these financial statements. Funding Policy – (a) Plan members are required to contribute 10% of their salary to the Plan. Of this, 2% is allocated to the defined benefit portion of the Plan and 8% is allocated to the defined contribution portion. (b) Pursuant to Chapter 175, Florida Statutes, the Town imposes a 1.85% tax on fire insurance premiums paid to insure real or personal property within its corporate limits. 100% of the net proceeds of this 1.85% excise tax are allocated to the defined benefit portion of the Plan. (c) Because the County is ultimately responsible for the actuarial soundness of the Plan, the County must contribute an amount determined by the Trustees, in conjunction with the Plan‟s actuary, to be sufficient, along with the employees‟ contributions and the proceeds from the 61 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 insurance tax, described above, to fund the defined benefits under the Plan. The current rate is 48.72% of annual covered payroll. Annual Pension Cost and Net Pension Obligation – Per the actuarial valuation, the annual pension cost and net pension obligation as of September 30, 2008 were as follows: Annual required contribution (ARC) Interest on net pension obligation Adjustment to ARC Annual pension cost Contributions made Increase (decrease) in net pension obligation Net pension obligation beginning of year Net pension obligation end of year $ 1,472,690 1,472,690 (1,472,690) - $ Three-Year Trend Information Fiscal Year Ending 09/30/06 09/30/07 09/30/08 Annual Pension Cost (APC) $ 833,858 1,497,710 1,472,690 Percentage of APC Contributed 100% 100 100 Net Pension Obligation $ - Funded Status and Funding Progress – As of September 30, 2008, the most recent actuarial valuation date, the plan was 73.5% funded. The actuarial accrued liability for benefits was $20.3 million, and the actuarial value of assets was $14.9 million, resulting in an unfunded actuarial accrued liability (UAAL) of $5.4 million. The covered payroll (annual payroll of active employees covered by the plan) was $2.6 million, and the ratio of the UAAL to the covered payroll was 204.9%. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions – In the September 30, 2008 actuarial valuation, the Individual Entry Age actuarial cost method was used. The actuarial assumptions included (a) a rate of return on the investment of present and future assets of 8.0% per year compounded annually, (b) projected salary increases of 7.0% per year compounded annually, and (c) the assumption that benefits will not increase after retirement. Both (a) and (b) included an inflation component of 5.0%. The actuarial value of assets was determined using the 5-year Smoothed Market asset valuation method. The UAAL is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at September 30, 2008 ranges from 1-16 years. Note: The Actuarial Valuation report for September 30, 2009 was not available. 62 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 COMPONENT UNIT Like the Primary Government, Westgate/Belvedere Homes Community Redevelopment Agency (CRA) also participates in the Florida Retirement System (FRS), a noncontributory, cost-sharing, multi-employer, public employee retirement system administered by the Florida Department of Management Services, Division of Retirement. The contribution requirements of CRA are established and may be amended by the Florida Legislature. The CRA‟s contributions to FRS for the years ended September 30, 2009, 2008, and 2007 were $26,826, $23,144, and $16,993, respectively, equal to the required contributions for each year. 7. COMMITMENTS County Home The County entered into an inter-local agreement with the Palm Beach County Health Care District (the District) effective July 11, 1995 regarding the Medicaid Match and the County Home and General Care Facility (County Home). This agreement provides that the County will make an annual payment of the fixed amount of $15 million to the District in exchange for the District‟s agreement to operate and manage the County Home and to pay 100% of the Medicaid Match funding as required by the State for hospital and nursing home care. The County‟s annual funding of $15 million is payable in equal monthly installments for the next 40 years. Outstanding Purchase Orders and Contracts Purchase orders and contracts (including construction contracts) had been executed, but goods and services were not received in approximately the amounts shown below as of September 30, 2009: 63 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Fund Capital Projects Funds Solid Waste Authority Department of Water Utilities Special Revenue Funds Department of Airports General Fund Internal Service Funds Property Appraiser Clerk & Comptroller Tax Collector Total Amount 302,109,658 179,672,766 62,991,000 46,395,109 11,834,776 1,049,184 848,544 142,724 15,447 344 605,059,552 $ $ Because the budget authority for these amounts lapses at fiscal year-end, they are not shown as either encumbrances or liabilities. Funds are appropriated at the beginning of each fiscal year to provide for these commitments. On May 26, 2006, the County entered into an economic development grant agreement with The Scripps Research Institute, a nonprofit public benefit corporation, to induce Scripps to establish and operate a biomedical research facility at Florida Atlantic University (FAU) in Jupiter, Florida and to encourage and stimulate economic growth by attracting new businesses and the creation of a biotech industry in the County. The County is providing funding of approximately $235 million for Scripps to construct and own 346,000 square feet of laboratory and office space at the FAU campus and 70 acres known as the Briger Tract for 1,600,000 square feet of related research and development uses. This Briger land will be turned over to Scripps at the end of the agreement provided they meet certain minimum new job creation requirements. Two temporary facilities were also funded by the County on the FAU campus. Scripps and FAU entered into a 99 year lease for the permanent facilities site on the FAU campus. Scripps has committed to strive to create or relocate 2,777 new jobs at the Scripps site. Scripps and the County agree to work cooperatively to create or relocate to the County an aggregate total of 6,500 new jobs. The agreement between the County and Scripps ends on February 6, 2021. The County has paid $210 million towards this commitment as of September 30, 2009. On July 22, 2008, the County entered into an economic development grant agreement with Max Planck Florida Corporation (MPFC) providing funding for approximately $86.9 million for the construction and operation of an approximate 100,000 square foot Biomedical Research Facility in the County. Under the terms of the agreement, a maximum of $60 million will be spent towards the construction costs for the Permanent Facility and $26.9 million towards the reimbursement of operational costs. The term of the agreement is 15 years. The County, MPFC and FAU entered into a sublease agreement to lease a portion of the John D. MacArthur Campus of FAU to MPFC for construction of its permanent Florida facilities. The execution of the FAU sublease is a condition to the disbursement of the grant funds. The County has paid $266,000 towards this commitment as of September 30, 2009. 64 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 On May 20, 2008, the County, on behalf of the Water Utilities Department (the Department), entered into an agreement with FP&L which provides for reclaimed water to become the primary source of cooling water supply to FP&L‟s West County Energy Center (the Center) beginning in FY2011. In addition, FP&L is to construct a 27 million gallon per day reclaimed water facility at the East Central Regional Wastewater Reclamation Facility. FP&L will reimburse the Department for all design-related services. Construction will be financed by revenue bonds of the Department to be issued prior to the commencement of construction, with FP&L reimbursing the Department for all debt service costs related to this debt issue. The agreement with FP&L has a term of thirty years beginning in FY 2011 with three additional ten year options. The project is being financed with proceeds from the $68M Series 2009 Water and Sewer Revenue Bonds. $9.8M is included in construction in progress as of September 30, 2009 for costs incurred for this project. Termination Benefits Termination benefits are benefits, other than salaries and wages that are provided by employers as settlement for involuntary terminations initiated by management, or as an incentive for voluntary terminations initiated by employees. On July 24, 2009 Palm Beach County offered eligible employees up to eight weeks of severance pay and the right to continue their healthcare insurance at the employee rate for up to three years if they agreed to voluntarily terminate employment by August 21, 2009. For fiscal year 2009, the cost of providing those benefits for seventy voluntary terminations was $2,222,500. The liability for the accrued healthcare cost at fiscal year-end was $1,603,300 with $562,300 estimated to be paid within one year. The healthcare cost benefit was valued using the unadjusted cost of the blended premium. The value of the severance pay was $619,200 including payroll taxes. On May 15, 2009 the Clerk & Comptroller of Palm Beach County offered employees severance pay equal to 100% of their accrued sick time if they agreed to voluntarily terminate employment by June 30, 2009. Sick time normally accrues at 25% for five through nine years and 50% for ten or more years of service. For fiscal year 2009, the cost of providing this benefit for thirty-two voluntary terminations was $268,000 including payroll taxes. There was no accrued benefits payable at fiscal year end. On May 29, 2009 the Clerk & Comptroller of Palm Beach County initiated an involuntary termination plan to pay four weeks of severance with termination effective June 12, 2009. For fiscal year 2009, the cost of providing this benefit for twenty-seven involuntary terminations was $79,400 including payroll taxes. There were no accrued benefits at fiscal year end. Land Acquisition Palm Beach County School Board – On September 21, 1993, an agreement (R93-1188D) was entered into by the Palm Beach County School Board (School Board) and Palm Beach County for co-location of facilities and exchange of properties. This Agreement establishes a process to facilitate joint planning for co-located facilities and also establishes a mechanism 65 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 by which properties owned by either party can be exchanged with the other party which has a need therefore. The Agreement also establishes a credit system whereby properties can be transferred and payments deferred for up to two years while offsetting exchanges are completed. In January of 2009, $88,000 was credited to the County from the School Board‟s purchase of 0.25 acres of land for use by the School Board for modernization of the Northboro Elementary School. As of September 30, 2009, Palm Beach County owes the School Board $25,870 under the Funding Agreement. Land Commitments During 1996, SWA purchased approximately 1,600 acres of farmland in western Palm Beach County as a replacement waste disposal site. SWA has an operating lease expiring in 2010 with the former owner to maintain and continue farming the property. The lease provides for annual rental payments to SWA adjusted each year based on the change in the producer price index for raw cane sugar, provided that the total annual rent shall not exceed $450,000. Rental income from this lease for the year ended September 30, 2009 was approximately $230,000. The carrying value of the land subject to the lease was approximately $8 million at September 30, 2009. The lease also provides the option to extend the term for five additional periods of four years (through 2030), each under the same terms and conditions. SWA retains the right to terminate the lease, in part, for areas designated for development by SWA after the initial lease term. Management expects the operating lease to be renewed until the property is utilized for its intended purpose as a replacement waste disposal site. SWA leases the current site of the Delray Beach transfer station from the City of Delray Beach under a 20 year operating lease expiring September 30, 2020 with an option to renew for an additional 20 years under the existing terms. The lease provides for annual rental payments increased by the annual change in the consumer price index. Rent expense for the year ended September 30, 2009 was approximately $125,000. The minimum future rental payments, based on an annual increase of 3 percent, under this operating lease at September 30, 2009 are estimated to be $1,654,416. Tri-County Commuter Rail Authority In October 1994, Palm Beach County entered into a five-year joint inter-local agreement (the Agreement) with Miami-Dade County, Broward County, the Florida Department of Transportation and the Tri-County Commuter Rail Authority (the Authority) which calls for each of the respective counties to fund one-third of the net operating deficit of the Authority after considering all Federal subsidy, State subsidy and farebox revenue. The County‟s 2009 subsidy amounted to $6,805,298. The Authority was created as an agency of the State of Florida pursuant to Chapter 343. Florida Statutes in 1988 to provide commuter rail services in Broward, Dade and Palm Beach counties. Tri-Rail serves both residents and tourists with a scheduled passenger rail commuter system which currently operates on seventy-one miles of rail corridor along the east coast of Florida. The governing Board of Directors consists of nine members; one representative from each county‟s Board of County Commissioners (3), one citizen from each county (3), one representative from the Florida Department of Transportation (1), one member appointed by 66 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 the Governor of Florida (1), and one member at large who is appointed by the other eight members (1). Tri-Rail‟s annual operating budget is adopted and approved by the Authority‟s Board of Directors. Separate financial statements for the Authority may be obtained at the following address: Tri-County Commuter Rail Authority 305 South Andrews Avenue, Suite 200 Fort Lauderdale, FL 33301 8. RISK MANAGEMENT The County maintains various self-insurance programs which are accounted for as internal service funds. Following is a brief description of each of the County‟s insurance programs. The claims liability reported in each of the funds at September 30, 2009, is actuarially determined based on the requirements of GASB 10, which specifies that a liability for claims be reported if information prior to the issuance of the financial statements indicated that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Property and Liability The County is exposed to various risks of loss related to torts; theft, damage and destruction of assets; errors and omissions; and natural disasters. A portfolio of commercial insurance policies provides specific excess coverage for property losses in excess of $1,000,000 and third-party liability losses in excess of $500,000. In addition, excess liability exposures are also limited to $100,000 per person and $200,000 per occurrence under Florida‟s sovereign immunity statute 768.28. Negligence claims in excess of the statutory limits can only be recovered through an act of the State of Florida Legislature. The County purchases excess claim bill liability coverage of $6 million per claim in order to protect against excess liability exposures. This coverage provides additional liability coverage against federal claim awards. Separate excess auto liability insurance coverage of $2,000,000 per claim is in place for the operation of Palm Tran‟s fleet of public transit buses. With the exception of the Sheriff, Clerk & Comptroller, and Property Appraiser, all funds of the County participate in the program and make payments to the Property and Liability Insurance Fund, included in the Combined Insurance Fund, based on estimates of the amounts needed to pay prior and current year claims. The claims liability reported in this fund at September 30, 2009 is $7,118,000. During claim years 2009 and 2008, changes recorded to the claims liability for property and liability insurance were as follows: 67 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Current Year Claims and Changes in Estimates $844,000 266,000 Fiscal Year 2008 2009 Beginning of Fiscal Year Liability $8,420,000 8,408,000 Claim Payments ($856,000) (1,556,000) Balance at Fiscal Year-End $8,408,000 7,118,000 Workers’ Compensation Insurance The County has self-funded its workers‟ compensation exposure since 1969. This fund covers all employees of the Board of County Commissioners, the Supervisor of Elections, the Clerk & Comptroller, the Property Appraiser, and the Tax Collector. Although the Sheriff‟s payroll and losses are reported to the State by the risk management department, the Sheriff administers his own program. The County is 100% self-insured for workers‟ compensation exposures beginning October 1, 1993. With the exception of the Sheriff, all funds of the County participate in the program and make payments to the Workers‟ Compensation Insurance Fund, included in the Combined Insurance Fund, based on estimates of the amounts needed to pay prior and current year claims. The claims liability reported in this fund at September 30, 2009 is $43,671,000. During claim years 2009 and 2008, changes recorded to the claims liability for workers‟ compensation insurance were as follows: Fiscal Year 2008 2009 Beginning of Fiscal Year Liability $36,694,000 39,656,000 Current Year Claims and Changes in Claim Estimates Payments $8,520,000 ($5,558,000) 8,656,000 (4,641,000) Balance at Fiscal Year-End $39,656,000 43,671,000 Employee Group Health Insurance The County provides health insurance for its employees, retirees, and eligible dependents. Effective January 1, 2004, the County changed from a fully insured plan to a self-insured plan. The County has in place a $500,000 specific excess insurance policy to protect the County against catastrophic health claims. With the exception of the Constitutional Officers who have separately contracted for health insurance coverage, all funds of the County participate in the program and make payments to the Employee Health Insurance fund, included in the Combined Insurance Fund, based on estimates of amounts needed to pay prior and current year claims. The Solid Waste Authority participated in the plan through December 31, 2008. Effective January 1, 2009, the Authority purchased health insurance through a commercial health insurance plan. The claims liability 68 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 reported in the fund at September 30, 2009 is $3,746,517. During claim years 2009 and 2008, changes recorded to the claims liability for employee health insurance were as follows: Current Year Claims and Changes in Claim Estimates Payments $52,304,812 ($52,478,921) 50,776,593 (51,169,932) Fiscal Year 2008 2009 Beginning of Fiscal Year Liability $4,313,965 4,139,856 Balance at Fiscal Year-End $4,139,856 3,746,517 SOLID WASTE AUTHORITY (SWA) The SWA is exposed to various risks of loss related to torts; theft, damage and destruction of assets; errors and omissions; injuries to employees; life and health of employees; and natural disasters. The SWA purchases commercial insurance for property damage with coverage up to a maximum of approximately $346 million, subject to various policy sub-limits, generally ranging from $1 million to $50 million and deductibles ranging from $50,000 to $1 million per occurrence. The SWA also purchases commercial insurance for general liability claims with coverage up to $5 million per occurrence and $5 million aggregate, with excess liability coverage of $25 million, all subject to various deductibles up to $50,000 per occurrence. General liability claims are limited by the Florida constitutional doctrine of sovereign immunity to $100,000 per claim and $200,000 per occurrence unless a higher claim is approved by the Florida Legislature. The SWA purchases commercial insurance for workers’ compensation benefits with a $1,000,000 per occurrence and per employee policy limit, subject to a deductible of $250,000 per occurrence and per claim, up to a maximum of approximately $1.5 million for 2009. Settled claims have not exceeded commercial coverage in any of the last three years. Changes in the claims liability amount for workers’ compensation benefits for the years ended September 30, 2009 and 2008 were as follows: Beginning of Fiscal Year Liability $448,000 448,000 Claims and Changes in Estimates $317,973 110,859 Claim Payments ($317,973) (110,859) Balance at Fiscal Year-End $448,000 448,000 Fiscal Year 2008 2009 Effective January 1, 2009, the SWA purchased health insurance through a commercial health insurance plan. SHERIFF The Sheriff’s Office maintains a general liability self-insurance program, a workers’ compensation self-insurance program and a commercially insured employee health insurance program which are accounted for in the Sheriff’s General fund (which is reported as a special 69 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 revenue fund in the County‟s CAFR). The following is a brief description of each of the Sheriff‟s insurance programs. General Liability Insurance The Sheriff‟s office is exposed to various risks of loss related to torts; theft, damage and destruction of assets; errors and omissions; and natural disasters. The claims liability reported for general liability at September 30, 2009 is $12,869,451. This amount is based on the requirements of GASB 10 which specifies that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. During claim years 2009 and 2008, changes recorded to the claims liability for general liability were as follows: Beginning of Fiscal Year Liability $14,069,096 12,907,299 Current Year Claims and Changes in Claim Estimates Payments $2,935,585 ($4,097,382) 3,601,656 (3,639,504) Balance at Fiscal Year-End $12,907,299 12,869,451 Fiscal Year 2008 2009 Workers’ Compensation Insurance The Sheriff‟s office is self-funded for its workers‟ compensation exposure. The claims liability reported at September 30, 2009 is $20,215,841. This amount is the actuarially determined claims liability based on the requirements of GASB 10 which specifies that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. During claim years 2009 and 2008, changes recorded to the claims liability for workers‟ compensation were as follows: Fiscal Year 2008 2009 Beginning of Fiscal Year Liability $19,568,839 19,505,079 Current Year Claims and Changes in Estimates $6,505,282 6,487,733 Claim Payments ($6,569,042) (5,776,971) Balance at Fiscal Year-End $19,505,079 20,215,841 Employee Group Health Insurance The Sheriff‟s office maintains a fully insured program for its employee group health insurance program. 70 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 CLERK & COMPTROLLER Employee Group Health Insurance The Clerk‟s office provides health insurance for its employees and eligible dependents. The Clerk‟s office is self-insured for its health insurance coverage and beginning with fiscal year 2004 is accounted for as an internal service fund. During claim years 2009 and 2008, changes recorded to the claims liability for health insurance were as follows: Current Year Claims and Changes in Estimates $8,401,247 9,867,523 Fiscal Year 2008 2009 Beginning of Fiscal Year Liability $532,000 752,000 Claim Payments ($8,181,247) (9,802,523) Balance at Fiscal Year-End $752,000 817,000 TAX COLLECTOR Employee Group Health and Dental Insurance The Tax Collector‟s office provides health and dental insurance to its employees and eligible dependents. The Tax Collector is fully insured for its health and dental coverage. 9. OTHER POST EMPLOYMENT BENEFITS (OPEB) Overview Entities of the Reporting Unit provide the following post-employment benefits to retirees: A. Healthcare Plans: 1. County includes: (a) Supervisor of Elections (b) Metropolitan Planning Organization 2. Tax Collector 3. Property Appraiser 4. Clerk & Comptroller 5. Sheriff 6. Fire Rescue Union 7. Solid Waste Department B. Long Term Disability Plan: 1. Fire Rescue Taxing District 71 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Healthcare Benefits Provided to Retirees Postretirement Benefits: The amount reported as the postretirement benefit obligation represents the actuarial present value of those estimated future benefits that are attributed by the terms of the plan to employees’ service rendered to the date of the financial statements, reduced by the actuarial present value of contributions expected to be received in the future from current plan participants. Postretirement benefits include future benefits expected to be paid to or for both of the following: 1. Currently retired or terminated employees and their beneficiaries and dependents. 2. Active employees and their beneficiaries and dependents after retirement from service with participating employers. The postretirement benefit obligation represents the amount that is to be funded by contributions from the plan’s participating employers and from existing plan assets. Before an active employee's full eligibility date, the postretirement benefit obligation is the portion of the expected postretirement benefit obligation that is attributed to that employee's service in the industry rendered to the valuation date. The actuarial present value of the expected postretirement benefit obligation is determined by an actuary and is the amount that results from applying actuarial assumptions to historical claims-cost data to estimate future annual incurred claims costs per participant and to adjust such estimates for the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as those for death, disability, withdrawal, or retirement) between the valuation date and the expected date of payment. Plan Description: The defined benefit post-employment healthcare plans provide medical benefits to eligible retired employees and their dependents. The plans are single employer plans which are administered by the employer for their employees. The Supervisor of Elections and Metropolitan Planning Organization participate in the County plan. The Fire Rescue retiree health plan is a defined benefit plan with attributes similar to a defined contribution plan. The County is required, per the Collective Bargaining Agreement, to make contributions equal to 3% of the total current base annual pay plus benefits for the Fire Rescue employees. Since the primary government is not entitled to nor does it have the ability to otherwise access the economic resources received or held by the Fire Rescue retiree health plan; and since Palm Beach County has no reversionary interest in the economic resources received or held by the Fire Rescue retiree health plan and the County is not responsible for custody of the assets of the plan, therefore it is not reported as a fiduciary fund of the County. Funding Policy: The contribution requirements of plan members and the employer are established and may be amended by the employer or by the union for Fire Rescue. All entities of the Primary Government are required by Florida Statute 112.0801 to allow their retirees (and eligible participants) to continue participation in the group insurance 72 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 plan. Retirees must be offered the same coverage as is offered to active employees at a premium cost of no more than the premium cost applicable to active employees which results in an implicit subsidy as defined by GASB 45. In addition to the ‘implicit’ benefit, two of the plans offer an explicit benefit. The Sheriff and Fire Rescue Plans provide a subsidy that retirees can use to partially or fully offset the cost of health insurance. At September 30, 2009 retirees receiving benefits contributed the following monthly premiums: County Medical Coverage Monthly Minimum Monthly Maximum Dental Coverage Monthly Minimum Monthly Maximum $ 550 4,177 $ Tax Collector 583 1,918 $ Property Appraiser 613 1,946 Clerk & Comptroller $ 491 1,764 $ Sheriff 389 2,183 Fire Rescue Union $ 147 509 $ SWA 531 1,555 12 78 na= not applicable 33 99 13 101 18 134 23 87 7 86 na na OPEB Cost and Net OPEB Obligation: The annual other post-employment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 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 the amortization of any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the annual OPEB cost for the year, the amount contributed to the plan, and changes in the net OPEB obligation as of fiscal year ended September 30, 2009: County Annual required contribution (ARC) Interest on net OPEB obligation Adjustment to annually required contribution Annual OPEB cost Contributions made Increase in net OPEB obligation Net OPEB obligationbeginning of year Net OPEB obligationend of year $ $ 1,269,000 16,000 $ Tax Collector 169,223 $ 8,499 Property Appraiser 30,190 $ 1,478 Clerk & Comptroller Sheriff Fire Rescue Union SWA 186,000 3,000 521,000 $ 16,100,000 $ 12,315,000 $ 4,000 500,000 (135,000) (12,000) 1,273,000 (1,081,711) 191,289 319,858 * 511,147 $ (6,647) 171,075 171,075 169,979 341,054 $ (1,156) 30,512 30,512 29,562 60,074 $ (3,000) 522,000 (496,997) 25,003 77,955 (400,000) 16,200,000 (4,700,000) 11,500,000 11,000,000 108,000 12,288,000 (4,204,243) 8,083,757 (2,651,659) 5,432,098 $ (3,000) 186,000 (21,709) 164,291 56,709 221,000 102,958 $ 22,500,000 $ * Restated to include MPO participation in County Healthcare Plan. 73 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and preceding fiscal year. Percentage of Annual OPEB Cost Contributed Net OPEB Obligation Liability (Asset) Fiscal Year Ended County 9/30/2008 $ 9/30/2009 Tax Collector 9/30/2008 $ 9/30/2009 Property Appraiser 9/30/2008 $ 9/30/2009 Clerk & Comptroller 9/30/2008 $ 9/30/2009 Sheriff Annual OPEB Cost 1,285,000 1,273,000 75.3 % 85.0 $ 319,858 * 511,147 169,979 171,075 0.0 % 0.0 $ 169,979 341,054 29,562 30,512 0.0 % 0.0 $ 29,562 60,074 520,000 522,000 85.0 % 95.2 $ 77,955 102,958 9/30/2008 $ 15,300,000 9/30/2009 16,200,000 Fire Rescue Union 9/30/2008 $ 1,262,872 9/30/2009 12,288,000 SWA 9/30/2009 $ 186,000 28.1 % 29.0 $ 11,000,000 22,500,000 310.0 % 34.2 $ (2,651,659) 5,432,098 11.7 % $ 221,000 * Restated to include MPO participation in County Healthcare Plan. Funded Status and Funding Progress: The plans are financed on a ‘pay-as-you-go’ basis. The funded status of the plans as of the most recent actuarial valuation date was as follows: County Actuarial accrued liability (AAL) Actuarial value of plan asset Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan / AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll Tax Collector Property Appraiser Clerk & Comptroller Sheriff Fire Rescue Union SWA $ 14,638,000 - $ 1,533,513 - $ 312,788 - $ 5,445,000 - $ 182,500,000 - $ 153,500,000 14,544,477 $ 1,440,000 - $ 14,638,000 $ 1,533,513 $ 312,788 $ 5,445,000 $ 182,500,000 $ 138,955,523 $ 1,440,000 0.0% 0.0% 0.0% 0.0% 0.0% 9.5% 0.0% $ 294,272,546 $ 9,879,680 $ 14,237,382 $ 35,775,864 $ 248,925,472 $ 108,788,372 $ 21,254,000 5.0% 15.5% 2.2% 15.2% 73.3% 127.7% 6.8% 74 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 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. Examples include assumptions about future employment, mortality, and the healthcare cost trend. 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. Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Significant methods and assumptions were as follows: County Actuarial valuation date Actuarial cost method 10/1/2007 Unit credit actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.0% 4.0% 11.0% 6.0% Tax Collector 10/1/2007 Entry age normal actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.0% 4.0% 9.0% 5.0% Property Appraiser 10/1/2007 Entry age normal actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.0% 4.0% 9.0% 5.0% Clerk & Comptroller 10/1/2007 Unit credit actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.0% 4.0% 11.0% 6.0% Sheriff 1/1/2009 Unit credit actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.0% 4.0% 11.0% 5.0% Fire Rescue Union 10/1/2008 Unit credit actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 5.1% 3.5% 11.0% 5.0% SWA 10/1/2008 Unit credit actuarial cost method Level percentage of salary at beginning of fiscal year 30 years na 6.0% 3.5% 11.5% 5.0% Actuarial amortization method Remaining amortization period Asset valuation method Actuarial assumptions Investment rate of return Projected salary increases Healthcare inflation rateinitial Healthcare trend rateultimate Long Term Disability Benefits Provided to Retirees Plan Description: The Palm Beach County Fire Rescue Supplemental Disability Plan is a defined benefit plan that provides disability benefits to eligible disabled Fire Fighters and District Chiefs permanently prevented from rendering useful and efficient service as a Fire Fighter and District Chiefs incurred in the line of duty. The plan is a single employer plan which is administered by the Palm Beach County Fire Rescue Department. Funding Policy: The contribution requirements of plan members and Palm Beach County are established and may be amended by collective bargaining between Palm Beach County and the Professional Firefighters/Paramedics of Palm Beach County, Local 2928, IAFF, Inc. The plan is funded by the County based on an annually required contribution calculated by an actuary. The earmarked funding, related earnings, expenditures and administrative costs are recorded in a special revenue fund. 75 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 OPEB Cost and Net OPEB Obligation: The annual other post-employment benefit cost is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortized any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the annual OPEB cost for the current fiscal year, the amount contributed to the plan, and changes in the net OPEB obligation: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Incr in net OPEB obligation Net OPEB obligation (asset)- beginning of year Net OPEB obligation (asset)- end of year $ 677,070 12,354 (16,679) 672,745 (660,788) 11,957 (220,324) $ (208,367) The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and preceding fiscal year are as follows: Fiscal Year Ended 9/30/2008 9/30/2009 $ Annual OPEB Cost Percentage of Annual OPEB Cost Contributed 131.1% $ 98.2% Net OPEB Obligation (Asset) (220,324) (208,367) 708,774 672,745 Funded Status and Funding Progress: The plan is financed on a „pay-as-you-go‟ basis. The funded status of the plan as of September 30, 2009, was as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan / AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll $ 7,634,577 $ 7,634,577 0.0% $ 119,792,017 6.4% 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. Examples include assumptions about future employment, disability occurrences, and workmen‟s compensation payments. 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 schedule of funding progress, presented as required 76 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 supplementary information following the notes to the financial statements, presents multi-year trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. Significant methods and assumptions were as follows: Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Projected salary increases Cost of living adjustments 10/1/2008 Entry Age Normal Actuarial Cost Method Level percentage of salary at beginning of fiscal year 30 years na 5% 4 to 10.5% None COMPONENT UNIT The Metropolitan Planning Organization (MPO) employees are County employees and participate in the County‟s healthcare plan. The „plan description‟, „funding policy‟, „OPEB Cost and Net OPEB Obligation‟, „Funded Status and Funding Progress‟, and „Actuarial Methods and Assumptions‟ are disclosed for the County under the preceding „Reporting Unit‟ section of this note. In fiscal year 2009, MPO reported an OPEB cost of $3,010 and net OPEB obligation of $6,010 as their pro rata share of the County‟s plan. 10. LEASES Leases Receivable: Enterprise Funds The County‟s Department of Airports leases a major portion of its property to other entities. Certain leases provide for minimum rentals plus a specified percentage of the tenants‟ gross revenues. Contingent rental income under such arrangements amounted to approximately $3,240,133 in fiscal year 2009. All leases have been classified as operating leases. 77 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Minimum future rentals under these operating leases are as follows: Year Ended September 30 2010 2011 2012 2013 2014 Thereafter Total Department of Airports $ 35,869,210 34,174,815 8,988,975 8,423,949 7,524,173 61,063,386 $ 156,044,508 A schedule of property held for lease by major classification is as follows: September 30, 2009 Buildings $ 226,649,397 Less: accumulated depreciation (112,731,804) Net Buildings 113,917,593 Land 5,547,813 Total property held for lease $ 119,465,406 Lease Obligations The County has entered into various leases which are classified as operating or capital leases for accounting purposes. Total rent expense for operating leases for the fiscal year ended September 30, 2009 amounted to approximately $4,540,081 comprised of $4,358,653 for Governmental funds, $146,959 for Enterprise Funds, and $34,469 for Internal Service Funds. Operating Leases Future minimum rental payments under non-cancellable operating leases as of September 30, 2009 are as follows: 78 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Fiscal Year 2010 2011 2012 2013 2014 Thereafter Total Internal Governmental Enterprise Service Funds Funds Funds $ 4,012,115 $ 122,001 $ 19,621 2,537,597 60,224 7,988 1,246,878 20,499 3,680 1,087,742 5,371 1,070,177 1,455,596 $ 11,410,105 $ 208,095 $ 31,289 Capital Leases Capital leases are those which are determined to have passed substantially all of the risks and benefits of ownership to the lessee. There were no Capital leases in the proprietary fund types. Future minimum lease payments under capital leases as of September 30, 2009 are as follows: Governmental Fiscal Year Funds 2010 $ 3,438 Total minimum lease payments Less: imputed interest Present value of minimum lease payments $ 3,438 (125) 3,313 The following schedule shows the leased assets capitalized as of September 30, 2009, by major asset class: Governmental Funds Capital Assets Equipment $ 18,958 Less: accumulated depreciation for entity wide (17,317) Carrying value $ 1,641 11. LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS The SWA operated one active landfill site for the year ended September 30, 2009. In addition, the SWA is responsible for two landfill sites closed after 1991 and three landfill sites closed prior to 1991. 79 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 State and Federal laws and regulations require the SWA to place a final cover on its operating landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at that and other landfill sites closed after 1991, for thirty years after closure. Although the majority of closure and postclosure care costs will be paid only near or after the date that the operating landfill stops accepting waste, the SWA reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each statement of net assets date. Landfill closure and postclosure care liabilities at September 30, 2009 are as follows: Accrued closure and postclosure care costs Accrued postclosure care for closed landfills Closure costs incurred Total Accrued Landfill Closure Costs $ $ 34,326,606 5,807,313 (13,922,183) 26,211,736 The $34,326,606 of accrued closure and postclosure care liabilities at September 30, 2009 represents the cumulative cost based on the use of 34.8 percent of the estimated capacity of the operating landfill. The SWA will recognize the remaining estimated cost of closure and postclosure care of approximately $64.3 million for the operating landfill as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform all closure and postclosure care in 2009. Based on current demographic information and engineering estimates of landfill consumption, the SWA expects to close the landfill in approximately 2024. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. The SWA is required by state laws and regulations to make annual contributions to an escrow account to finance all closure costs and one year of postclosure care for landfills closed after 1991. The SWA is in compliance with these requirements, and, at September 30, 2009 assets of $28,976,849 were held for these purposes. These amounts are reported as noncurrent restricted assets on the statement of net assets. The SWA expects that future inflation costs will be paid from interest earnings on these invested amounts and subsequent annual contributions. However, if interest earnings are inadequate or additional closure or postclosure care requirements are determined (due to changes in technology or applicable laws or regulations) these costs may need to be covered by charges to future users of the solid waste system or from future non-ad valorem assessments. 80 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 At September 30, 2009, the statutorily required escrow account balances were as follows: September 30, 2009 $ 24,238,259 339,193 20,513 $ 24,597,965 Site Site 7 closure costs Dyer landfill long-term care Belle Glade landfill long-term care State laws and regulations specify that required landfill escrow account balances must be calculated using either the “Pay-in” or the “Balance” method, as they are statutorily defined. During 2006 the SWA changed from the Pay-in method to the Balance method. The SWA will be required to continue using the Balance method through the remaining design life of the Site 7 landfill. Although the SWA is not legally required by state or federal laws and regulations to provide funding for the landfill sites closed prior to 1991, the SWA has accepted financial responsibility for these sites. The annual long-term care funding requirements for these sites were not estimated or accrued at September 30, 2009, however, management does not believe that the annual costs are material to the SWA and these costs will be adequately funded through future, annual operating budgets. 12. REFUNDING OF DEBT Advance Refunding: Certain bond issues have been refunded through in-substance defeasance by placing into irrevocable trust funds sufficient monies to meet future principal and interest payments. These funds have been invested in U.S. Government securities and securities backed by the U.S. Government. There were no new advance refundings during the current fiscal year. The amount of insubstance defeased bonds outstanding, as of September 30, 2009, consists of the following: 81 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Bond Issues Governmental Funds: General Obligation Bonds (Land Acquisition), 2001A Public Improvement Revenue Bonds (Convention Center Project), 2001 Proprietary Funds: Water & Sewer Refunding Revenue Bonds, 1986 Solid Waste Authority Refunding Revenue Bonds, 1997A Airport Refunding Revenue Bonds, 2001 Airport Refunding Revenue Bonds, 2002 Amount $ 51,145,000 70,090,000 121,235,000 10,685,000 10,695,000 6,340,000 14,740,000 42,460,000 $ 163,695,000 Total Defeased Bonds Outstanding Current year refunding Governmental Funds: On November 13, 2008, Palm Beach County issued $94,235,000 Public Improvement Revenue Bonds (Max Planck / Sunshine Loan Refunding Projects), Series 2008-2. Of the total proceeds, $51,730,000 was for the Sunshine Loan Refunding. This refunding, with an effective interest rate of 5.130% was issued to refund the County‟s remaining balances of the $27,000,000 Sunshine State Pooled Financing Loan #7A, Series 2005 and the $7,500,000 Sunshine State Pooled Financing Loan #7B, Series 2006 and the $6,125,000 Sunshine State Pooled Financing Loan #8, Series 2006 and the $8,160,000 Sunshine State Pooled Financing Loan #9, Series 2006 and the $4,838,000 Sunshine State Pooled Financing Loan #11, Series 2007. The net proceeds of $48,000,000 (after allowing for $164,684 in issuance costs, $979,778 in bond premium, $324,652 in bond discount, $4,223,240 in contributions to a debt service reserve fund, and $2,798 in adjustments) plus a County contribution of $872,000 were used to pay the principal on the loans. The carrying amount exceeded the reacquisition price, resulting in an accounting loss of $108,573. This amount is being netted against the new debt and amortized over the remaining life of the refunded debt, which is shorter than the life of the new debt issued. The County increased its aggregate debt service payments by approximately $28,106,901 over a period of twenty years and incurred an economic loss of approximately $16,030,990 (difference between the present value of the old and new debt service payments). The interest rate in effect at the time of the refunding was used to compute the aggregate debt service payments and related economic gain for the refunded variable rate debt. The purpose of the refunding was to replace the variable rate loans with a fixed rate bond, due to the downgrade in the credit rating of the liquidity provider which limited the remarketing of the bonds and resulted in a substantial increase in interest rates paid by the County. 82 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 COMPONENT UNIT: Westgate/Belvedere Homes Community Redevelopment Agency (CRA) – The Series 1999 Bonds were issued for the purpose of providing the monies required to pay the cost of advance refunding. CRA‟s Series 1992 Bonds were used to construct and install certain infrastructure improvements in the redevelopment area, make a deposit to the Reserve Account, and pay costs relating to the issuance of Series 1992 Bonds. The proceeds of the refunding issues have been placed in irrevocable escrow accounts and invested in U.S. Treasury obligations that, together with interest earned thereon, will provide amounts sufficient for future payments of interest and principal on the bond issues being refunded. Refunded bonds are not included in CRA‟s outstanding debt since CRA has legally satisfied its obligations through the refunding transactions. Defeased bonds outstanding at September 30, 2009 are $1,725,000. 13. RECLASSIFICATIONS Effective October 1, 2008 the County reclassified the Graphics Internal Service Fund into the General Fund. As a result, beginning fund balance in the General Fund decreased by $238,550, net of related capital assets and debt. 14. INTERFUND RECEIVABLE AND PAYABLE BALANCES Interfund balances at September 30, 2009, are expected to be repaid within one year. Interfund receivable and payable balances at September 30, 2009 were as follows: Interfund Receivable Fund Governmental Funds: Major Governmental Funds General Fund Interfund Payable Fund Amount Law Enforcement Grants Special Revenue Fund Community & Social Development Special Revenue Fund Other Special Revenue Funds Sheriff Special Revenue Fund Clerk & Comptroller Special Revenue Fund Tax Collector Special Revenue Fund Property Appraiser Special Revenue Fund Supervisor of Elections Special Revenue Fund Solid Waste Authority $ 1,325,791 6,955,118 33,433,271 17,210,006 503,030 32,386,518 1,938,552 862,201 28,683 $ 94,643,170 Fire Rescue Special Revenue Fund Other Special Revenue Funds Sheriff Special Revenue Fund Tax Collector Special Revenue Fund Property Appraiser Special Revenue Fund Solid Waste Authority $ 932,255 11,549 2,553,510 154,699 1,250 3,653,263 447 62,942 63,389 $ Sheriff Special Revenue Fund General Fund Criminal Justice Capital Projects $ $ 83 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interfund Receivable Fund General Government Capital Projects Interfund Payable Fund Palm Tran Special Revenue Fund Sheriff Special Revenue Fund Clerk & Comptroller Special Revenue Fund Property Appraiser Special Revenue Fund Airports $ Amount 890,034 271,056 26,912 46,518 1,100,000 2,334,520 $ Nonmajor Governmental Funds Nonmajor Special Revenue Funds Law Enforcement Grants Special Revenue Fund Sheriff Special Revenue Fund $ $ 3,586,406 3,586,406 166 2,475,361 2,475,527 581,806 39,313 621,119 6,975,224 107,949 7,083,173 9,946 9,946 61,463 132,822 194,285 893,698 2,865 198 842 169 2,167 138,407 12,353 97,166 1,147,865 County Transportation Trust Special Revenue Fund Sheriff Special Revenue Fund Road Program Capital Projects $ $ Library Taxing District Special Revenue Fund Tax Collector Special Revenue Fund Property Appraiser Special Revenue Fund $ $ Community & Social Development Special Revenue Fund General Fund Affordable Housing (SHIP) Trust Fund Special Revenue Fund $ $ Affordable Housing (SHIP) Trust Fund Special Revenue Fund Community & Social Development Special Revenue Fund $ $ Other Special Revenue Funds General Fund Clerk & Comptroller Special Revenue Fund $ $ Clerk & Comptroller Special Revenue Fund General Fund Library Taxing District Special Revenue Fund Community & Social Development Special Revenue Fund Affordable Housing (SHIP) Trust Fund Special Revenue Fund Other Special Revenue Funds Road Program Capital Projects Airports Water Utilities Clerk & Comptroller Insurance Fund $ $ Nonmajor Capital Projects Funds Environmental Lands Capital Projects Tourist Development Special Revenue Fund Other Special Revenue Funds $ $ 189,667 188,964 378,631 3,435 3,435 Street & Drainage Capital Projects Tax Collector Special Revenue Fund $ $ Total Nonmajor Governmental Funds $ 15,500,387 84 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interfund Receivable Fund Proprietary Funds: Enterprise Funds Water Utilities Interfund Payable Fund Amount General Fund County Transportation Trust Special Revenue Fund Library Taxing District Special Revenue Fund Community & Social Development Special Revenue Fund Fire Rescue Special Revenue Fund Other Special Revenue Funds Tax Collector Special Revenue Fund Airports $ 23,156 426 2,119 3,347 2,333 805 8,409 421 41,016 147 57 37 264 1,977,707 503 464,603 28 2,443,346 $ Solid Waste Authority County Transportation Trust Special Revenue Fund Palm Tran Special Revenue Fund Other Special Revenue Funds Sheriff Special Revenue Fund Tax Collector Special Revenue Fund Airports Water Utilities ISS $ $ Internal Service Funds Fleet Management General Fund County Transportation Trust Special Revenue Fund Municipal Service Taxing District Special Revenue Fund Library Taxing District Special Revenue Fund Community & Social Development Special Revenue Fund Affordable Housing (SHIP) Trust Fund Special Revenue Fund Fire Rescue Special Revenue Fund Palm Tran Special Revenue Fund Other Special Revenue Funds Sheriff Special Revenue Fund Clerk & Comptroller Special Revenue Fund Tax Collector Special Revenue Fund Property Appraiser Special Revenue Fund Supervisor of Elections Special Revenue Fund Road Program Capital Projects Airports Water Utilities Solid Waste Authority Combined Insurance Fund ISS $ 634,964 559,291 33,082 7,758 58,404 518 93,800 2,500 36,303 433,591 4,855 622 1,387 1,759 13,531 64,419 256,675 264 825 5,618 2,210,166 $ Combined Insurance Fund General Fund Tourist Development Special Revenue Fund County Transportation Trust Special Revenue Fund Municipal Service Taxing District Special Revenue Fund Library Taxing District Special Revenue Fund Community & Social Development Special Revenue Fund Affordable Housing (SHIP) Trust Fund Special Revenue Fund Fire Rescue Special Revenue Fund Palm Tran Special Revenue Fund Other Special Revenue Funds Road Program Capital Projects 85 $ 1,035,231 3,044 177,224 54,998 178,535 211,009 9,155 30,381 294,061 26,921 26,154 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Interfund Receivable Fund Interfund Payable Fund Airports Water Utilities Fleet Management ISS $ ISS General Fund Tourist Development Special Revenue Fund County Transportation Trust Special Revenue Fund Municipal Service Taxing District Special Revenue Fund Library Taxing District Special Revenue Fund Community & Social Development Special Revenue Fund Affordable Housing (SHIP) Trust Fund Special Revenue Fund Fire Rescue Special Revenue Fund Palm Tran Special Revenue Fund Other Special Revenue Funds Clerk & Comptroller Special Revenue Fund Tax Collector Special Revenue Fund Property Appraiser Special Revenue Fund General Government Capital Projects Airports Water Utilities Fleet Management Combined Insurance Fund $ Amount 82,220 266,402 33,163 83,746 2,512,244 1,171,273 1,354 3,150 53,841 5,849 1,009 1,142 70,262 21,346 144,217 591,845 127,483 89,988 51,072 13,045 103,758 11,986 37,130 2,499,750 446,872 446,872 7,669,032 $ Clerk & Comptroller Insurance Fund Clerk & Comptroller Special Revenue Fund $ $ Total Internal Service Funds Total Interfund Receivables and Payables Primary Government Receivables and Payables Between Primary Government and Component Units: Interfund Receivable Primary Government Fund Interfund Payable Component Unit Fund Combined Insurance Fund ISS Metropolitan Planning Organization Metropolitan Planning Organization $ $ Interfund Receivable Component Unit Fund Interfund Payable Primary Government Fund $ $ 126,348,123 Amount 3,964 1,519 5,483 Amount Metropolitan Planning Organization Housing Finance Authority General Fund General Fund $ $ 264,459 6,033,854 6,298,313 6,303,796 Total Receivables and Payables Between Primary Government and Component Units $ The outstanding balances between funds result mainly from the time lag between the dates that 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system, and 3) payments between funds are made. 86 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 15. LONG-TERM DEBT Changes in Long-Term Liabilities - The following is a summary of changes in long-term liabilities for the year ended September 30, 2009 for both governmental activities and business-type activities: Beginning Ending Due within Governmental activities: Balance Additions Reductions Balance One Year Bonds payable: General obligation bonds $ 290,410,000 $ - $ 20,260,000 $ 270,150,000 $ 21,185,000 Non-ad valorem revenue bonds 882,004,002 94,235,000 52,187,385 924,051,617 58,016,492 Face amount of bonds payable 1,172,414,002 94,235,000 72,447,385 1,194,201,617 79,201,492 Unamortized bond premiums 32,279,961 1,784,444 2,101,699 31,962,706 Unamortized loss on bond refinancing (12,302,075) (108,573) (834,041) (11,576,607) Net bonds payable 1,192,391,888 95,910,871 73,715,043 1,214,587,716 79,201,492 Notes and loans payable 75,494,205 17,339,760 51,506,709 41,327,256 12,436,588 Arbitrage liability 4,676,746 11,824,989 1,755,376 14,746,359 2,911,919 Compensated absences * 114,240,334 55,536,089 46,935,580 122,840,843 6,650,031 OPEB 11,524,769 17,386,115 105,616 28,805,268 Net pension obligation 252,006 252,006 Termination benefits 1,470,948 1,470,948 511,720 Capital leases 7,452 4,139 3,313 3,313 Estimated Self-Insurance Obligation 85,368,234 79,655,505 76,585,930 88,437,809 22,788,245 Governmental activity long-term liabilities $ 1,483,703,628 $ 279,376,283 $ 250,608,393 $ 1,512,471,518 $ 124,503,308 * Internal Service Funds Compensated Absences were considered short term in prior years and were, therefore, not included in the Long-Term Debt Note. As a result, last year's ending balance of $110,321,525 has been increased by $3,918,809. Long-term liabilities other than debt (bonds, loans and leases) are liquidated by the governmental fund incurring the expense. Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. At year-end $59,537,928 of internal service funds long-term liabilities are included in the above amounts. Business-type activities: Bonds payable: Revenue bonds Unamortized bond premiums Unamortized loss on bond refinancing Net bonds payable Notes and loans payable Accrued interest on notes and capital appreciation bonds Accrued landfill costs Compensated absences OPEB Termination benefits Business-type activities long-term liabilities Beginning Balance $ 540,532,818 9,519,909 (7,888,506) 542,164,221 80,000,000 35,083,526 25,246,685 8,271,777 69,585 $ 690,835,794 Additions $ 461,225,000 6,165,528 467,390,528 5,447,201 965,051 2,438,648 287,468 132,366 $ 476,661,262 Reductions $ 53,815,000 1,370,641 (3,100,419) 52,085,222 4,000,000 1,889,755 $ 57,974,977 $ Ending Balance 947,942,818 14,314,796 (4,788,087) 957,469,527 76,000,000 40,530,727 26,211,736 8,820,670 357,053 132,366 $ 1,109,522,079 $ $ Due within One Year 93,700,000 93,700,000 4,000,000 350,000 665,130 50,592 98,765,722 87 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Governmental Activities General Long-Term Debt General long-term debt, including current maturities, at September 30, 2009 consisted of the following: General Obligation Bonds $57,440,000 General Obligation Refunding Bonds, Series 1994B were issued to pay the cost of refunding all or a portion of the County's General Obligation Bonds, Series 1970, Series 1978, Series 1988 and Series 1991. The annual installments range from $3,880,000 to $4,135,000 through July 1, 2011; with interest rates from 6.500% to 6.750% payable semi-annually on January 1 and July 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $45,625,000 General Obligation Refunding Bonds, Series 1998 were issued to pay the cost of refunding a portion of the County's General Obligation Bonds, Series 1994 and Series 1991. The annual installments range from $3,125,000 to $4,030,000 through December 1, 2014; with interest rates from 4.400% to 5.500% payable semi-annually on June 1 and December 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $30,500,000 General Obligation Bonds (Library District Improvement Project), Series 2003 were issued to pay the cost of the land acquisition, design, engineering and constructing of new library facilities and the renovation and rehabilitation of existing library facilities within the County. The annual installments range from $1,230,000 to $2,205,000 through July 1, 2023; with interest rates from 2.875% to 5.250% payable semi-annually on January 1 and July 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $25,000,000 General Obligation Bonds (Recreational and Cultural Facilities), Series 2003 were issued to pay the costs of acquiring, constructing, and improving certain recreational and cultural facilities located within the County including cultural facilities owned by nonprofit corporations with 501(c)(3) status under the Internal Revenue Code, 1986. The annual installments range from $1,060,000 to $1,780,000 through July 1, 2023; with interest rates from 3.000% to 5.000% payable semi-annually on January 1 and July 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $ 8,015,000 $ 21,315,000 $ 23,185,000 $ 19,170,000 88 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $16,025,000 General Obligation Refunding Bonds (Recreational and Cultural Facilities Program), Series 2005A were issued for paying and defeasing the County's outstanding General Obligation Bonds (Recreational and Cultural Facilities Program), Series 1999A maturing on and after August 1, 2010. The annual installments range from $1,265,000 to $1,920,000 through August 1, 2019; with interest rates from 3.500% to 5.000% payable semi-annually on February 1 and August 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $25,000,000 General Obligation Bonds (Recreational and Cultural Facilities), Series 2005 were issued for financing certain recreational and cultural facilities within the County. The annual installments range from $975,000 to $1,860,000 through July 1, 2025; with interest rates from 3.000% to 5.000% payable semi-annually on January 1 and July 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $22,335,000 General Obligation Bonds (Library District Improvements), Series 2006 were issued for financing additional library facilities and renovation of existing facilities within the County. The annual installments range from $905,000 to $1,665,000 through August 1, 2025; with interest rates from 3.375% to 5.000% payable semi-annually on February 1 and August 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $50,000,000 General Obligation Bonds (Waterfront Access Projects), Series 2006 were issued for financing the purchase of waterfront access within the County. The annual installments range from $1,910,000 to $3,570,000 through August 1, 2026; with interest rates from 3.400% to 5.000% payable semi-annually on February 1 and August 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. $115,825,000 Taxable General Obligation Refunding Bonds, Series 2006 were issued for paying and defeasing the County's outstanding General Obligation Bonds (Land Acquisition Program), Series 1999B and paying and defeasing the County's outstanding General Obligation Bonds (Land Acquisition Program), Series 2001A. The annual installments range from $6,835,000 to $11,355,000 through June 1, 2020; with interest rates from 5.705% to 5.938% payable semi-annually on June 1 and December 1 of each year. The bonds are general obligations of the County and are payable from ad valorem revenues. Total General Obligation Bonds $ 15,805,000 $ 21,455,000 $ 19,800,000 $ 44,630,000 $ 96,775,000 $ 270,150,000 89 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Non-Ad Valorem Revenue Bonds $233,620,000 Criminal Justice Facilities Revenue Bonds, Series 1990 were issued to pay the cost of the construction of improvements, extensions and additions to the County's jails, courthouses and related justice facilities. The annual installments range from $18,300,000 to $19,615,000 from June 1, 2014 through June 1, 2015; with an interest rate of 7.200% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. The County advance refunded $120,770,000 of this issue on June 29, 1993 and $33,550,000 on August 21, 1997. $22,245,000 Administrative Complex Revenue Refunding Bonds, Series 1993 were issued to refund the Palm Beach County Public Building Corporation, Inc. Revenue Refunding Bonds, Series 1986. The annual installments range from $1,715,000 to $1,865,000 through June 1, 2011; with an interest rate of 5.250% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $117,485,000 Criminal Justice Facilities Revenue Refunding Bonds, Series 1993 were issued to pay the cost of advance refunding a portion of the Criminal Justice Facilities Revenue Bonds, Series 1990. The annual installments range from $12,685,000 to $13,365,000 through June 1, 2011; with an interest rate of 5.375% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $32,775,000 Criminal Justice Facilities Revenue Refunding Bonds, Series 1997 were issued to pay the cost of advance refunding a portion of the County's outstanding Criminal Justice Facilities Revenue Bonds, Series 1990. The annual installments range from $15,870,000 to $16,785,000 from June 1, 2012 through June 1, 2013; with an interest rate of 5.750% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $18,560,000 Criminal Justice Facilities Revenue Refunding Bonds, Series 2002 were issued to pay the cost of advance refunding a portion of the County's outstanding Criminal Justice Facilities Revenue Bonds, Series 1994. The annual installments range from $1,600,000 to $2,015,000 through June 1, 2015; with interest rates from 3.750% to 5.000% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. 90 $ 37,915,000 $ 3,580,000 $ 26,050,000 $ 32,655,000 $ 10,770,000 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $6,525,000 Public Improvement Recreation Facilities Revenue Refunding Bonds, Series 2003 were issued to pay the cost of refunding all of the County's outstanding Public Improvement Recreation Facilities Revenue Bonds, Series 1994. The annual installments range from $590,000 to $685,000 through July 1, 2014; with interest rates from 3.375% to 4.000% payable semi-annually on January 1 and July 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $94,300,000 Public Improvement Revenue and Refunding Bonds, Series 2004 were issued to pay the cost of refunding the County's Revenue Refunding Bond Anticipation Note (Light Industrial Complex Project), Series 2002, refunding the County's Airport Centre Revenue Bonds, Series 1992 and paying the costs of acquiring, constructing, and renovating certain capital facilities. The annual installments range from $4,350,000 to $6,690,000 through August 1, 2023; with interest rates from 2.500% to 5.000% payable semi-annually on February 1 and August 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $81,340,000 Public Improvement Revenue Refunding Bonds (Convention Center Project), Series 2004 were issued to finance the costs of advance refunding the County's Public Improvement Revenue Bonds, Series 2001 (Convention Center Bonds). The annual installments range from $1,635,000 to $5,240,000 through November 1, 2030; with interest rates from 2.500% to 5.000% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $38,895,000 Public Improvement Revenue Bonds (Biomedical Research Park Project), Series 2004A were issued to pay the outstanding principal and interest on the County's Public Improvement Revenue Bond Anticipation Notes (Biomedical Research Park Project), Series 2004B. The annual installments range from $1,580,000 to $2,715,000 through November 1, 2024; with interest rates from 2.625% to 4.375% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $ 3,190,000 $ 73,355,000 $ 77,750,000 $ 32,925,000 91 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $24,427,515 Taxable Public Improvement Revenue Bonds (Biomedical Research Park Project), Series 2004B were issued to pay the outstanding principal and interest on the County's Taxable Public Improvement Revenue Bond Anticipation Notes (Biomedical Research Park Project), Series 2004C. The annual installments range from $2,442,751 to $2,442,752 through November 1, 2014; with a variable rate of interest in effect of 0.345% which is calculated on a daily basis payable semiannually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $17,455,000 Parks and Recreation Facilities Revenue Refunding Bonds, Series 2005 were issued to pay the cost of refunding the County's Parks and Recreation Facilities Revenue Bonds, Series 1996 maturing on and after November 1, 2007. The annual installments range from $1,525,000 to $2,000,000 through November 1, 2016; with interest rates from 3.500% to 5.000% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $13,485,000 Revenue Refunding Bonds (North County Courthouse and Sheriff's Motor Pool Facility Projects), Series 2005 were issued to pay the cost of defeasing a portion of the County's outstanding Revenue Improvement Bonds, Series 1997 (North County Courthouse and Sheriff's Motor Pool Facilities Projects). The annual installments range from $1,160,000 to $1,605,000 through December 1, 2017; with interest rates from 3.000% to 5.000% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $9,520,000 Public Improvement Revenue Refunding Bonds, Judicial Center Parking Facilities, Series 2005 were issued to pay the cost of refunding the County's Public Improvement Revenue Bonds, Judicial Parking Facilities, Series 1995 maturing on and after November 1, 2006. The annual installments range from $895,000 to $1,120,000 through November 1, 2015; with interest rates from 3.250% to 5.000% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $ 14,656,507 $ 13,960,000 $ 12,240,000 $ 6,985,000 92 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $133,935,000 Public Improvement Revenue Bonds (Biomedical Research Park Project), Series 2005A were issued to pay the cost of funding a grant to The Scripps Research Institute to enable Scripps to pay a portion of the cost of acquiring, constructing, improving and equipping the "Permanent Facilities" and paying the outstanding principal and interest due on the County's $20,000,000 Public Improvement Revenue Bond Anticipation Notes, Series 2004. The annual installments range from $4,900,000 to $10,190,000 through June 1, 2025; with an interest rate of 5.000% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $20,070,000 Stadium Facilities Revenue Refunding Bonds, Series 2005 were issued to pay the cost of refunding all of the County's outstanding Stadium Facilities Revenue Bonds, Series 1996. The annual installments range from $1,535,000 to $2,090,000 through December 1, 2016; with interest rates of 3.250% to 5.000% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $13,028,760 Public Improvement Revenue Bonds (Florida Atlantic University Laboratory and Research Facility Project), Series 2005 were issued to pay the cost of the design, development and construction of a laboratory and research facility on the Jupiter, Florida Campus of Florida Atlantic University. The annual installments range from $1,403,315 to $1,641,680 through January 1, 2014; with a variable rate of interest in effect of 0.571% which is calculated on a daily basis payable semiannually on January 1 and July 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $14,685,000 Public Improvement Revenue Bonds (Parking Facilities Expansion Project), Series 2006 were issued to pay the costs of construction related to the expansion of the Judicial Center Parking Garage. The annual installments range from $520,000 to $1,085,000 through December 1, 2026; with interest rates of 4.000% to 5.000% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $ 115,965,000 $ 14,420,000 $ 7,600,805 $ 13,710,000 93 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $2,582,648 Public Improvement Revenue Refunding Bond (Biomedical Research Park Project), Series 2007A was issued to pay the County‟s outstanding Public Improvement Revenue Note (Biomedical Research Park Infrastructure Project), Series 2006A and Taxable Public Improvement Revenue Note (Biomedical Research Park Infrastructure Project), Series 2006B. The annual installments range from $89,989 to $182,616 through November 1, 2027; with an interest rate of 4.010% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $5,180,949 Taxable Public Improvement Revenue Refunding Bond (Biomedical Research Park Project), Series 2007B was issued to pay the County‟s outstanding Public Improvement Revenue Note (Biomedical Research Park Infrastructure Project), Series 2006A and Taxable Public Improvement Revenue Note (Biomedical Research Park Infrastructure Project), Series 2006B. The annual installments range from $155,551 to $411,965 through November 1, 2027; with an interest rate of 5.560% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $98,080,000 Public Improvement Revenue Bonds (Biomedical Research Park Project), Series 2007C were issued to redeem the County‟s Public Improvement Revenue Bond Anticipation Notes (Biomedical Research Park Project), Series 2006, to fund a grant to the Scripps Research Institute to enable Scripps to pay a portion of the cost of their permanent facilities, and to pay for the preparation of the Briger Site for development. The annual installments range from $3,190,000 to $7,490,000 through November 1, 2027; with interest rates from 4.000% to 5.000% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $35,075,000 Public Improvement Revenue Bonds (Law Enforcement Information Technology Project), Series 2008 were issued to pay the cost of law enforcement technology equipment and software. The annual installments range from $5,577,886 to $6,298,675 through February 1, 2014; with an interest rate of 3.038% payable semi-annually on February 1 and August 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $ 2,492,533 $ 5,023,737 $ 95,015,000 $ 29,664,035 94 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $29,476,000 Public Improvement Revenue Refunding Bonds, Series 2008A were issued to refund three variable rate loans with the Sunshine State Governmental Financing Commission. The annual installments range from $1,093,000 to $4,142,000 through December 1, 2020; with an interest rate of 3.497% payable semi-annually on June 1 and December 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $176,585,000 Public Improvement Revenue Bonds, Series 2008 were issued to pay for additional criminal justice (law enforcement) facilities. The annual installments range from $3,120,000 to $10,730,000 through May 1, 2038; with interest rates from 4.000% to 5.000% payable semiannually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. $94,235,000 Public Improvement Revenue Bonds, Series 2008-2 were issued to distribute funds to Max Planck Florida Corporation to establish a biomedical research facility in the County and also to refinance the County‟s five Series J variable rate loans with the Sunshine State Governmental Financing Commission. The annual installments range from $3,035,000 to $7,295,000 through November 1, 2028; with interest rates from 4.000% to 5.500% payable semi-annually on May 1 and November 1 of each year. The bonds are not general obligations of the County and are payable from non-ad valorem revenues. Total Non-Ad Valorem Revenue Bonds Face Amount of Bonds Payable Unamortized bond premiums Unamortized loss on bond refinancing Net General Obligation and Non-Ad Valorem Revenue Bonds $ 25,364,000 $ 174,530,000 $ 94,235,000 $ 924,051,617 $1,194,201,617 $ 31,962,706 $ (11,576,607) $1,214,587,716 Notes and Loans Payable $1,660,000 - HUD Section 108 Loan #1, 2004, payable to the Secretary of Housing and Urban Development due in annual installments ranging from $87,000 to $94,000 through August 1, 2023; with interest rates of 4.570% to 5.970% payable semi-annually on February 1 and August 1 of each year. The loan is not a general obligation of the County and is payable from non-ad valorem revenues. $ 1,225,000 95 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $11,543,892 Taxable Public Improvement Revenue Bond Anticipation Note (Convention Center Hotel Project) Series 2007 was issued to pay the cost of acquiring the convention center hotel site and initial design expenses. Interest is payable semiannually on May 1 and November 1 with the entire principal due on May 1, 2010; at a variable rate of interest in effect of 0.399% which is calculated on a daily basis. The note is not a general obligation of the County and is payable from non-ad valorem revenues. $11,697,676 Public Improvement Revenue Note (Environmentally Sensitive Land Acquisition Project) Series 2008 was issued to pay the cost of the acquisition of environmentally sensitive land in Palm Beach County. The annual installments are $584,884 through August 1, 2028; with a variable rate of interest in effect of 1.092% payable semiannually on February 1 and August 1 of each year. The note is not a general obligation of the County and is payable from non-ad valorem revenues. $199,000 - HUD Section 108 Loan, 2009, was obtained to provide funding for a County loan to Glades Gas & Electric for the Belle Glade Avenue “A” Revitalization Project. The annual installments range from $4,000 to $16,000 through August 1, 2028; with a variable rate of interest in effect of 0.561% payable quarterly on February 1, May 1, August 1 and November 1 of each year. The loan is not a general obligation of the County and is payable from non-ad valorem revenues. $16,140,760 Capital Improvement Bond Anticipation Note, Series 2009 was issued to finance the cost of renovation, construction and equipping of public improvement facilities. Interest is payable semiannually on June 1 and December 1 with the entire principal due on June 1, 2012; at a variable rate of interest in effect of 1.131% which is calculated on a daily basis. The note is not a general obligation of the County and is payable from non-ad valorem revenues. $1,000,000 - HUD Section 108 Loan, 2009, was obtained to provide funding for a County loan to Baron Group for the Community Development Business Loan Program Project. The annual installments are $100,000 through August 1, 2019; with a variable rate of interest in effect of 0.561% payable quarterly on February 1, May 1, August 1 and November 1 of each year. The loan is not a general obligation of the County and is payable from non-ad valorem revenues. $ 11,543,892 $ 11,112,792 $ 199,000 $ 16,140,760 $ 1,000,000 96 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $ 606,412 - IBM Mainframe IPA Systems Equipment Loan, 2007. The Information Systems Services Department agreed to an installment purchase agreement with IBM for data processing software systems equipment with maintenance and services. The terms of the installment purchase are quarterly principal and interest payments at a rate of 3.746% for the Equipment, 3.553% for the Software and 5.110% for Services through January 1, 2010. The installment purchase is not a general obligation of the County and is payable from non-ad valorem revenues. Total Notes and Other Loans Payable Lines of Credit On May 21, 2009, the County entered into a $38,776,332 line of credit agreement with a financial institution to support the issuance of letters of credit to satisfy the debt service reserve funding requirements for seven of the County‟s outstanding bond issues. Principal borrowed on the line of credit is due at maturity on May 20, 2010. Interest on the principal balance accrues at a rate equivalent to the one-month LIBOR rate plus 1.500% and is paid quarterly. The County does not anticipate that any draws on the letters of credit will occur. The County will use non-ad valorem revenues to fund the letter of credit fees. The County had no outstanding balance on the line of credit as of September 30, 2009. On June 4, 2009, the County entered into a $22,568,948 line of credit agreement with a financial institution to support the issuance of standby letters of credit to satisfy the debt service reserve funding requirements for four of the County‟s outstanding bond issues. Principal borrowed on the line of credit is due at maturity on June 3, 2010. Interest on the principal balance accrues at a rate per year equal to the sum of (i) the Prime Rate plus (ii) for the first 30 days such amount is outstanding, 0%; for the 31st through 60th day such amount is outstanding, 0.5%; for the 61st through 90th day such amount is outstanding, 1.0%; and after the 90th day, 2.0%. The County does not anticipate that any draws on the letters of credit will occur. The County will use non-ad valorem revenues to fund the letter of credit fees. The County had no outstanding balance on the line of credit as of September 30, 2009. $ $ 105,812 41,327,256 97 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Arbitrage Liability Certain County debt obligations are subject to Section 148 of the Internal Revenue Code which requires that interest earned on proceeds from taxexempt debt be rebated to the federal government to the extent that those earnings exceed the interest cost of the related tax-exempt debt. The arbitrage rebate must be calculated and paid to the federal government every five years from the date of issue until the debt matures. The County employs a consultant to make computations on an annual basis. However, since the rebate is cumulative (excess earnings in one year can be offset with deficit earnings in another year), the annually computed estimate may change significantly (increase or decrease) before the actual due date. $ 14,746,359 Compensated absences Compensated absences are liquidated by the governmental fund incurring the expense. County Funds: General Fund $ 15,281,417 Special Revenue Funds 23,264,054 Capital Projects Fund 750,523 Internal Service Funds 3,887,087 Constitutional Officers: Sheriff 70,994,346 Clerk & Comptroller 5,140,616 Tax Collector 885,606 Property Appraiser 2,363,406 Supervisor of Elections 273,788 OPEB Net pension obligation Termination benefits Capital leases Estimated Self-Insurance Obligation Total Governmental Activities General Long-Term Debt including current portion $ 122,840,843 28,805,268 252,006 1,470,948 3,313 88,437,809 $1,512,471,518 98 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Business-type Activities Long-Term Debt Business-type long-term debt, including current portion, at September 30, 2009 consisted of the following: Revenue Bonds $30,000,000 Water and Wastewater Revenue Bonds, Series 1998 were issued to pay a portion of the costs of constructing certain additions and improvements to the County's water and wastewater facilities. The annual installments range from $1,575,000 to $1,715,000 through October 1, 2011; with interest rates from 4.300% to 4.500% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Wastewater System and a first lien on and pledge of the connection charges of the system. $26,785,000 Water and Sewer Revenue Refunding Bonds, Series 2003 were issued to pay for refunding all of the County's outstanding Water and Sewer Revenue Bonds, Series 1993A and Water and Sewer Revenue Refunding Bonds, Series 1993B maturing on and after October 1, 2003. The annual installments range from $830,000 to $4,120,000 through October 1, 2013; with interest rates from 2.125% to 5.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Sewer system and a first lien on and pledge of the connection charges of the system. $28,265,000 Water and Sewer Revenue Refunding Bonds, Series 2004 were issued to pay for the refunding of the County's Water and Sewer Revenue Bonds, Series 1995 maturing on and after October 1, 2006. The annual installments range from $3,985,000 to $5,270,000 through April 1, 2011; with an interest rate of 5.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Sewer system and a first lien on and pledge of the connection charges of the system. $ 4,935,000 $ 8,100,000 $ 9,255,000 99 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $125,850,000 Water and Wastewater Revenue Bonds, Series 2006A were issued to pay a portion of the costs of constructing certain additions and improvements to the County's water and wastewater facilities and acquisition of certain water and wastewater assets from the Village of Royal Palm Beach, Florida. The annual installments range from $2,180,000 to $7,760,000 through October 1, 2036; with interest rates from 3.500% to 5.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Wastewater System and a first lien on and pledge of the connection charges of the system. $ 121,705,000 $12,485,000 Water and Sewer Revenue Refunding Bonds, Series 2006B were issued to pay for the refunding of the County's Water and Sewer Revenue Bonds, Series 1998 maturing on and after October 1, 2012. The annual installments range from $45,000 to $2,245,000 through October 1, 2017; with interest rates from 3.500% to 4.250% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Sewer system and a first lien on and pledge of the connection charges of the system. $6,473,000 Water and Sewer Revenue Refunding Bonds, Series 2008 were issued to pay for refunding all of the County's outstanding Water and Sewer Revenue Bonds, Series 1985. The annual installments range from $1,500,000 to $1,928,000 through October 1, 2011; with an interest rate of 3.250% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Sewer system and a first lien on and pledge of the connection charges of the system. $68,115,000 Water and Sewer Revenue Bonds, Series 2009 (FPL Reclaimed Water Project) were issued to finance the acquisition and construction of additions to the County‟s Water and Sewer System and to reimburse Florida Power and Light for costs advanced by them. The annual installments range from $1,065,000 to $4,225,000 through October 1, 2040; with interest rates from 4.000% to 5.250% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien on and pledge of the net revenues of the County's Water and Sewer System and a first lien on and pledge of the connection fees. $ 12,365,000 $ 5,073,000 $ 68,115,000 100 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $83,965,000 Airport System Revenue Refunding Bonds, Series 2001 were issued to refund the Airport System Revenue Bonds, Series 1991 maturing October 1, 2004 and October 1, 2010. The annual installments range from $7,535,000 to $7,975,000 through October 1, 2010; with interest rates from 4.250% to 5.500% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are payable solely from and secured from the net revenues available for Debt Service and the funds and accounts pledged under the bond resolution. $60,150,000 Airport System Revenue Refunding Bonds, Series 2002 were issued to refund the Airport System Revenue Bonds, Series 1992 maturing October 1, 2014. The annual installments range from $10,270,000 to $12,500,000 from October 1, 2011 through October 1, 2014; with an interest rate of 5.750% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are payable solely from and secured from the net revenues available for Debt Service and the funds and accounts pledged under the bond resolution. $69,080,000 Airport System Revenue Refunding Bonds, Series 2006A were issued to pay a portion of the costs of constructing certain facilities and improvements to the Airport System. The annual installments range from $2,920,000 to $6,055,000 from October 1, 2021 through October 1, 2036; with interest rates from 4.700% to 5.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are payable solely from and secured from the net revenues available for Debt Service and the funds and accounts pledged under the bond resolution. $16,855,000 Airport System Revenue Refunding Bonds, Series 2006B were issued to advance refund a portion of the Airport System Revenue Bonds, Series 2001 and a portion of the Airport System Revenue Bonds, Series 2002. The annual installments range from $2,425,000 to $3,225,000 from October 1, 2015 through October 1, 2020; with an interest rate of 5.905% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are payable solely from and secured from the net revenues available for Debt Service and the funds and accounts pledged under the bond resolution. $ 15,510,000 $ 45,410,000 $ 69,080,000 $ 16,855,000 101 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $266,590,000 Solid Waste Authority Refunding Revenue Bonds, Series 1997A were issued to refund the Authority's Adjustable/Fixed Rate Revenue Bonds, Series 1984 maturing on and after July 1, 1998. The remaining annual installment is $71,430,000 with $34,405,000 due on October 1, 2009 and $37,025,000 due on July 1, 2010; with an interest rate of 6.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority's solid waste disposal and resource recovery system. $36,405,432 Solid Waste Authority Refunding Revenue Bonds, Series 1998A were issued to refund certain of the Authority‟s Refunding Bonds, Series 1989. $2,165,000 are Current Interest Series 1998A Bonds, which have matured. $34,240,432 are Capital Appreciation series 1998A Bonds due in annual installments of $2,550,830 to $20,209,629 from October 1, 2011 through October 1, 2013; and shall accrue interest from their delivery date to appreciate at the approximate yields from 4.900% to 5.050%. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority's solid waste disposal and resource recovery system. $39,869,386 Solid Waste Authority Improvement Revenue Bonds, Series 2002B were issued to refund a portion of the Authority's Refunding and Improvement Revenue Bonds, Series 1992. $1,135,000 are Current Interest Series 2002B Bonds, which have matured. $38,734,386 are Capital Appreciation Series 2002B Bonds due in annual installments ranging from $12,003,800 to $13,769,586 from October 1, 2014 through October 1, 2016; and shall accrue interest from their delivery date to appreciate at the approximate yields from 4.850% to 5.050%. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority's solid waste disposal and resource recovery system. $34,385,000 Solid Waste Authority Refunding Revenue Bonds, Series 2004 were issued to advance refund the Authority's Improvement Revenue Bonds, Series 1997B due in annual installments ranging from $45,000 to $33,935,000 through October 1, 2011; with interest rates from 2.250% to 5.000% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority's solid waste disposal and resource recovery system. $ 71,430,000 $ 34,240,432 $ 38,734,386 $ 34,025,000 102 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 $131,565,000 Solid Waste Authority Improvement Revenue Bonds, Series 2008B were issued to fund various solid waste system projects. The annual installments range from $10,700,000 to $34,965,000 from October 1, 2024 through October 1, 2028; with interest rates from 5.500% to 5.625% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority‟s solid waste disposal and resource recovery system. $261,545,000 Solid Waste Authority Improvement Revenue Bonds, Series 2009 were issued to finance the 2008 Project. The annual installments range from $2,500,000 to $31,270,000 from October 1, 2011 through October 1, 2028; with interest rates from 3.000% to 5.500% payable semi-annually on April 1 and October 1 of each year. The bonds are not general obligations of the County and are secured by a first lien upon and pledge of the net revenues of the Authority‟s solid waste disposal and resource recovery system. Total face value of revenue bonds payable Unamortized bond premiums Unamortized loss on bond refinancing Net Revenue Bonds, Business-Type Activities Notes and Loans Payable $80,000,000 Solid Waste Authority Subordinated Improvement Revenue Note, Series 2008 was issued to finance costs incurred in connection with the relocation of facilities and the purchase of land for the development of a new landfill site. The annual installments are $4,000,000 through October 1, 2027; with a variable rate of interest in effect of 0.980% payable semi-annually on April 1 and October 1 of each year. The note is not a general obligation of the County and is secured by a first lien upon and pledge of the net revenues of the Authority's solid waste disposal and resource recovery system. Total notes and loans payable $ 131,565,000 $ 261,545,000 $ 947,942,818 $ 14,314,796 $ (4,788,087) $ 957,469,527 $ $ 76,000,000 76,000,000 103 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Line of Credit On March 15, 2006, the Department of Airports entered into an $8,000,000 line of credit agreement with a financial institution to finance costs incurred in connection with the acquisitions, constructions, installation and equipping of certain facilities and improvements relating to the Airport System. Principal borrowed on the line of credit is due at maturity on June 30, 2011. Interest on the principal balance accrues at a rate equivalent to 77% of the one month LIBOR rate plus 46 basis points (approximately 2.370% at September 30, 2009) and is paid quarterly. Borrowings on the line of credit are payable from and secured by a pledge of the net revenues of the airport system, subordinate to the lien and pledge of net revenues for repayment of the Airport bonds. The Department had no outstanding balance on the line of credit as of September 30, 2009. Accrued interest payable on notes and capital appreciation bonds Accrued landfill costs Compensated absences Compensated absences are liquidated by the business type fund incurring the expense. Business-Type Fund Water Utilities Department Department of Airports Solid Waste Authority $ $ 40,530,727 26,211,736 $ 2,889,185 1,280,329 4,651,156 $ $ $ 8,820,670 357,053 132,366 OPEB Termination benefits Total Business-Type Activities Long-Term Debt, including current portion $1,109,522,079 104 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Annual debt service requirements to maturity for governmental activities long-term debt are as follows: Governmental Activities General Long-Term Debt General Obligation Bonds Year Ending September 30 2010 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 Total Principal 21,185,000 22,240,000 18,965,000 19,885,000 20,850,000 103,445,000 53,065,000 10,515,000 270,150,000 Interest 13,468,819 12,416,423 11,269,504 10,350,093 9,371,974 31,235,921 8,844,627 623,198 97,580,559 Non-Ad Valorem Revenue Bonds Principal 58,016,492 58,206,950 60,749,589 63,739,693 66,248,559 206,111,382 187,362,476 133,261,476 50,405,000 39,950,000 924,051,617 Interest 42,769,938 40,514,189 38,134,695 35,573,432 32,802,501 125,463,188 80,764,832 38,503,647 16,720,125 5,115,500 456,362,047 Loans Payable Principal 12,436,588 786,884 16,927,644 786,884 786,883 3,938,419 3,305,419 2,358,535 41,327,256 Interest 416,977 366,191 354,994 161,056 149,607 572,351 277,607 64,110 2,362,893 Total 148,293,814 134,530,637 146,401,426 130,496,158 130,209,524 470,766,261 333,619,961 185,325,966 67,125,125 45,065,500 1,791,834,372 $ $ $ $ $ $ $ $ $ $ $ $ $ $ Annual debt service requirements to maturity for business-type activities long-term debt are as follows: Business-type Activities Long-Term Debt Revenue Bonds Year Ending September 30 2010 2011 2012 2013 2014 2015-2019 2020-2024 2025-2029 2030-2034 2035-2039 2040-2044 Total Principal 93,700,000 18,430,000 57,298,830 40,169,629 32,559,973 147,444,386 182,695,000 242,570,000 67,875,000 56,950,000 8,250,000 947,942,818 Interest 42,831,384 39,388,523 39,922,666 56,230,894 47,770,950 194,674,350 122,509,599 67,312,091 25,028,981 7,281,555 417,500 643,368,493 Loan and Note Payable Principal 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000 20,000,000 16,000,000 76,000,000 Interest 740,000 700,000 660,000 620,000 580,000 2,300,000 1,300,000 320,000 7,220,000 Total 141,271,384 62,518,523 101,881,496 101,020,523 84,910,923 364,418,736 326,504,599 326,202,091 92,903,981 64,231,555 8,667,500 1,674,531,311 $ $ $ $ $ $ $ $ $ $ COMPONENT UNITS: Metropolitan Planning Organization (MPO) Changes in Long-Term Liabilities: Beginning Balance $ 206,424 3,000 * $ 209,424 Ending Additions Reductions Balance $ - $ 37,148 $ 169,276 3,010 6,010 $ 3,010 $ 37,148 $ 175,286 Due Within One Year $ 11,680 $ 11,680 Compensated absences OPEB Total * Restated to include MPO participation in County Healthcare Plan. 105 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Westgate/Belvedere Homes Community Redevelopment Agency (CRA) Changes in Long-Term Liabilities: Beginning Balance $ 2,070,000 2,310,477 189,299 255,036 260,000 $ 5,084,812 Ending Balance $ 1,900,000 2,061,548 178,751 240,974 260,000 $ 4,641,273 Due Within One Year $ 175,000 259,403 178,751 240,974 260,000 $ 1,114,128 Bonds payable Loans payable Mortgage payable Mortgage payable Mortgage payable Total Additions $ $ - Reductions $ 170,000 248,929 10,548 14,062 $ 443,539 Bond obligation - Redevelopment Revenue Refunding and Improvement Bonds, Series 1999 authorized issue dated March 1, 1999, was $3,380,000. Bonds outstanding at September 30, 2009 were $1,900,000 and interest rates range from 3.1% to 4.8%. Loan payable – On November 28, 2005, the CRA was approved by a bank for a loan in the amount of $3,038,300 with a maturity of August 1, 2016 and interest set at 4.15%. The proceeds of the loan will be used for street improvements and acquisition of property in the Westgate/Belvedere Community. Mortgage payable – The mortgage is payable in monthly installment payments of $1,955 including interest with a maturity of August 3, 2010 and interest rate of 7%. The mortgage is secured by the building. Mortgage payable – The mortgage is payable in monthly installment payments of $2,519, interest only, with an extended maturity of September 30, 2010 and interest rate of 6.5%. The mortgage is secured by the building. Mortgage payable – The mortgage is payable in monthly installment payments of $1,625, interest only, with a maturity of September 28, 2010 and interest rate of 7.5%. The mortgage is secured by the building. Annual debt service requirements to maturity for CRA long-term debt are as follows: Year Ending September 30 2010 2011 2012 2013 2014 2015-2018 Total Bond Obligation Interest Total $ 82,570 $ 257,570 74,917 259,917 66,760 256,760 58,180 258,180 49,055 259,055 91,775 1,031,775 $ 423,257 $ 2,323,257 Principal $ 175,000 185,000 190,000 200,000 210,000 940,000 $ 1,900,000 106 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Year Ending September 30 2010 2011 2012 2013 2014 2015-2016 Total Principal $ 259,403 270,317 281,515 293,536 305,887 650,890 $ 2,061,548 Loan Payable Interest $ 86,742 75,828 64,630 52,609 40,258 41,400 $ 361,467 Total $ 346,145 346,145 346,145 346,145 346,145 692,290 $ 2,423,015 Year Ending September 30 2010 Total Mortgage Payable Principal Interest $ 178,751 $ 11,172 $ $ 178,751 $ 11,172 $ Total 189,923 189,923 Year Ending September 30 2010 Total Mortgage Payable Principal Interest $ 240,974 $ 15,222 $ $ 240,974 $ 15,222 $ Total 256,196 256,196 Year Ending September 30 2010 Total Mortgage Payable Principal Interest $ 260,000 $ 19,500 $ $ 260,000 $ 19,500 $ Total 279,500 279,500 CONDUIT DEBT Primary Government: The County issues Industrial Development Bonds to provide financial assistance to not-for-profit and private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The County is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. During the current reporting period, one series of Industrial Development Bonds was issued with an aggregate par value of $16 million. As of September 30, 2009, there were thirty-eight 107 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 series of Industrial Development Bonds outstanding, with an estimated aggregate principal amount payable of $593 million. Component Unit: The Housing Finance Authority of Palm Beach County (HFA) is authorized to issue bonds to fulfill their corporate purpose. The HFA and the County are not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2009, the HFA has $257 million of bonds outstanding that were originally issued in the aggregate principal amount of $301 million. 16. CONTINGENCIES Litigation The County is involved in various lawsuits arising in the ordinary course of operations. Where it has been determined that a loss is probable related to these matters a liability has been recorded in our self insurance obligations. There are two litigation matters where management of the County based on advice of legal counsel have determined it is reasonably possible that a loss may occur if an unfavorable outcome is received. As of this date an amount, if any, cannot be determined but the estimated range of loss for the two matters are between $0 and $32 million and $0 and $2 million. No obligation has been recognized in the financial statements for these matters. In addition the County is involved with other matters the outcome of which is not presently determinable, it is the opinion of management of the County based upon consultation with legal counsel, that the outcome of these matters would not have a material adverse affect on the financial position of the County. State and Federal Grants Grant monies received and disbursed by the County are for specific purposes and are subject to audit by the grantor agencies. Such audits may result in requests for reimbursements due to disallowed expenditures. Based upon prior experience, management does not believe that such disallowances, if any, would have a material adverse effect on the financial position of the County. Interlocal Agreement On September 22, 1992 the Board of County Commissioners approved an interlocal agreement between the County and the Westgate/Belvedere Homes Community Redevelopment Agency (Agency), whereby the County has agreed to fund any deficiency in the reserve fund of the Agency’s Redevelopment Revenue Bonds. The Agency is required to notify the County on or before May 2nd of each year of any deficiency amount that the Agency expects to exist on the next succeeding November 1st. At present, the County has not been made aware of any deficiency amount. 108 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Bond Guaranty On October 17, 2000 the Board of County Commissioners approved a trust agreement between the County and Suntrust Bank, (the Trustee), whereby the County has agreed to fund any deficiency in the reserve fund of the Palm Beach County, Florida, Industrial Development Revenue Bonds (South Florida Fair project), Series 2000. The Trustee is required to notify the County after June 1st and on or before June 5th of each year of the deficiency amount, if any, as of such date. At present, the County has not been made aware of any deficiency amount. Letters of credit have been arranged in lieu of debt service reserve surety insurance policies where credit ratings of the insurers declined below the rating required by the bond covenants. Additional information on the letters of credit may be found in the note for long-term debt. Solid Waste Authority (SWA) Environmental Liabilities: SWA, in cooperation with other state and local regulatory agencies, maintains an extensive monitoring program for potential environmental contaminants at each of its sites and facilities. These monitoring programs have not identified any contaminants caused by landfill leachate or other operations of SWA. In the event that any environmental contaminants are identified, SWA may be financially responsible for the environmental assessment and cleanup costs, as well as potential fines imposed by governmental regulatory agencies. 17. PLEDGED REVENUES The County has pledged a portion of future non-ad valorem revenues to repay $963 million in revenue bonds, notes and loans issued between July 1, 1990 and June 18, 2009. A ten year history of the pledged revenues are reported in statistical table X. Proceeds from the debt provided financing for capital additions, improvements, and expansion of County facilities, equipment and infrastructure. The bonds are payable solely from available non-ad valorem revenues and are payable through May 1, 2038. Total principal and interest remaining to be paid on the bonds is $1.4 billion with annual requirements ranging from $11 million in fiscal year 2034 to $116 million in fiscal year 2012. The pledged non-ad valorem revenues, from which the appropriations will be made, have averaged $319 million per year over the last 10 years. Principal and interest paid for the current year and total pledged non-ad valorem revenues were $96 million and $380 million, respectively. The County has pledged future airport revenues net of specified operating expenses, to repay $147 million in airport revenue bonds issued between July 3, 2001 and May 17, 2006. Proceeds from the bonds provided financing for the addition, improvements and expansion of the airport facilities, equipment and infrastructure. The bonds are payable solely from the airport net revenues and are payable through October 1, 2036. Total principal and interest remaining to be paid on the bonds is $239 million with annual 109 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 requirements ranging from $6 million in fiscal year 2037 to $17 million in fiscal year 2015. Annual principal and interest payments on the bonds are expected to require less than 34% of projected future net revenues. Principal and interest paid for the current year and net operating income before interest expense were $15 million and $25 million, respectively. The County has pledged future water utility revenues net of specified operating expenses, to repay $230 million in water & sewer revenue bonds issued between June 24, 1998 and July 22, 2009. Proceeds from the bonds provided financing for the addition, improvements and expansion of the water and sewer facilities, equipment and infrastructure. The bonds are payable solely from the water utility net revenues and are payable through October 1, 2040. Total principal and interest remaining to be paid on the bonds is $407 million with annual requirements ranging from $4 million in fiscal year 2041 to $24 million in fiscal year 2010. Annual principal and interest payments on the bonds are expected to require less than 28% of projected future net revenues. Principal and interest paid for the current year and net operating income before interest expense were $22 million and $56 million, respectively. The Solid Waste Authority (SWA) has pledged future revenues net of specified operating expenses, to repay $648 million in SWA revenue bonds issued between March 15, 1997 and April 23, 2009. Proceeds from the bonds and note provided financing for the addition, improvements and expansion of the SWA facilities, equipment and infrastructure. The bonds and note are payable solely from the SWA net revenues and are payable through October 1, 2028. Total principal and interest remaining to be paid on the bonds and note is $1.029 billion with annual requirements ranging from $46 million in fiscal year 2018 to $68 million in fiscal year 2013. Annual principal and interest payments on the bonds are expected to require less than 100% of projected future net revenues. Principal and interest paid for the current year and net operating income before interest expense were $47 million and $61 million, respectively. 18. SUBSEQUENT EVENTS Water Utilities Department: On June 16, 2009 the Board of County Commissioners created the Glades Utility Authority (GUA). The GUA, which began operations on October 1, 2009, is a regional partnership established for the purpose of providing water, wastewater, and reclaimed water services to the residents of Belle Glade, Pahokee, and South Bay (Cities) and surrounding areas in an efficient and fiscally responsible manner. Under the Agreement, the GUA will assume the existing utility debt of the cities, establish sustainable financial policies, assume ownership of all utility assets (including the Lake Region Water Treatment Plant and the Belle Glade wastewater plant), rehabilitate the systems, correct regulatory violations, improve revenue collections and decrease costs through economies of scale. 110 PALM BEACH COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2009 Certain conditions precedent to establishment of the GUA were met by the August 1, 2009 deadline: The existing State Revolving Fund loans of the Cities assumed by the GUA were restructured for a 30-year term with the first five years interest only with an interest rate not exceeding 4.5%. The agreement commits the County as a backup pledge for the restructured debt. The GUA received a $9.3 million bank loan with level principal and interest payments for a 10-year term with interest at 4.48%. The agreement commits the County as a backup pledge for the debt. A transition agreement sets forth the details for transferring assets, customer accounts, and employees, and provides for cooperation and exchange of information needed for a smooth transition. Initially, this agreement provides for the GUA to contract with the County to provide all utility services, and all City utility employees are to become employees of the County, provided that they meet the minimum hiring requirements. Transferred employees are to be subject to the same probationary status as any County new hires. The agreement further requires the GUA to pay an annual host franchise fee to the three Cities of 7% of the GUA‟s gross revenues from within each City‟s service area. In September, 2009, the Water Utilities Department (the Department) amended its FY 2010 operating budget to include the estimated $10 million cost of operating the GUA and the contractual revenues to be received from the GUA to fund these expenses. Additionally, 54 positions were added to the Department‟s personnel complement to operate the GUA. This transaction will be accounted for by the County in the Utilities enterprise fund as a non-exchange transaction which will result in the recognition of contribution expense to other governments to reflect the transfer of the Lake Region Water Treatment Plant on October 1, 2009 to the GUA when all eligibility requirements have been met and the asset is first available for use by the GUA. The result of this transaction will be a reduction in capital assets and the amount invested in capital assets net of related debt in the amount of $55.4 million. Fire Rescue: On December 16, 2008 the Board of County Commissioners adopted an Ordinance to add the Village of Palm Springs and the City of Lake Worth to the Fire Rescue MSTU for the tax year 2009 for services beginning October 1, 2009. The employees will be hired by the County and added to the Fire Rescue complement. The County will lease their fire stations annually. All of the related vehicles, furnishings, and equipment were transferred to the County on October 1, 2009. 111 112 R e q u i r e d S u p p l e m e n ta r y I n f o r m at i o n The Required Supplementary Information subsection includes the budgetary comparison schedule for Palm Beach County’s major funds; the General Fund, the Fire Rescue Special Revenue Fund, and the Sheriff Special Revenue Fund. It also includes the schedules of funding progress related to the Palm Tran and Lantana Firefighter’s Pension Plans, the Palm Beach County Healthcare Plans, and the Fire Rescue Long-Term Disability Plan. PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the fiscal year ended September 30, 2009 (Required Supplementary Information) Variance With Final Budget Positive (Negative) $ (25,642,266) 44,000 5,159,090 (3,192,382) 1,104,128 491,102 10,859,426 1,857,384 36,722,269 27,402,751 Original Budget Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 (Restated) Increase in reserves, inventory Fund balances, September 30, 2009 $ $ 664,611,996 4,407,200 28,651,781 72,087,553 1,282,400 14,168,750 6,044,082 (39,997,269) 751,256,493 Final Budget $ 637,603,996 26,415,200 28,891,676 86,192,278 1,282,400 14,168,750 6,378,709 (36,722,269) 764,210,740 Actual Amounts $ 611,961,730 44,000 31,574,290 25,699,294 87,296,406 1,773,502 25,028,176 8,236,093 791,613,491 224,697,406 33,892,179 13,955,814 6,720,000 27,763,622 55,690,630 60,767,391 219,901 423,706,943 327,549,550 37,316,309 (559,121,947) (521,805,638) (194,256,088) 194,256,088 $ 237,578,137 34,711,320 13,924,522 6,805,298 27,732,960 55,521,953 60,268,867 392,923 436,935,980 327,274,760 35,763,656 (581,613,576) (545,849,920) (218,575,160) 218,575,160 - 123,163,174 33,081,054 13,045,938 6,805,298 27,305,408 53,166,793 58,819,037 289,736 315,676,438 475,937,053 63,670,349 (579,131,367) (515,461,018) (39,523,965) 220,335,250 51,912 $ 180,863,197 114,414,963 1,630,266 878,584 427,552 2,355,160 1,449,830 103,187 121,259,542 148,662,293 27,906,693 2,482,209 30,388,902 179,051,195 1,760,090 51,912 $ 180,863,197 NOTE: The effective legal level of budget control is maintained at the department or fund level. A separate detailed report providing this information is available for inspection at the Office of Financial Management and Budget. Annual budgets are legally adopted for all governmental and proprietary fund types. Budgetary comparisons presented herein are on a basis consistent with GAAP. 113 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Rescue Special Revenue Fund For the fiscal year ended September 30, 2009 (Required Supplementary Information) Variance With Final Budget Positive (Negative) $ (7,902,148) (9,228) 3,123 35,534 732,842 7,680,783 394,044 11,625,495 12,560,445 Original Budget Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Public safety Economic environment Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase in reserves, inventory Fund balances, September 30, 2009 $ $ 207,303,930 285,802 2,000 263,600 27,297,109 4,257,455 91,500 (11,625,495) 227,875,901 Final Budget $ 207,303,930 285,802 2,000 263,600 27,804,458 4,257,455 99,500 (11,625,495) 228,391,250 Actual Amounts $ 199,401,782 276,574 5,123 299,134 28,537,300 11,938,238 493,544 240,951,695 295,288,191 1,030,000 9,355,727 305,673,918 (77,798,017) 8,271,878 (6,200,000) 2,071,878 (75,726,139) 75,726,139 $ 309,743,932 1,030,000 11,414,886 322,188,818 (93,797,568) 8,408,057 (6,200,000) 2,208,057 (91,589,511) 91,589,511 - 214,684,040 961,656 5,616,363 221,262,059 19,689,636 6,809,554 (6,200,000) 609,554 20,299,190 94,117,444 60,916 $ 114,477,550 95,059,892 68,344 5,798,523 100,926,759 113,487,204 (1,598,503) (1,598,503) 111,888,701 2,527,933 60,916 $ 114,477,550 NOTE: The effective legal level of budget control is maintained at the department or fund level. A separate detailed report providing this information is available for inspection at the Office of Financial Management and Budget. Annual budgets are legally adopted for all governmental and proprietary fund types. Budgetary comparisons presented herein are on a basis consistent with GAAP. 114 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Sheriff Special Revenue Fund For the fiscal year ended September 30, 2009 (Required Supplementary Information) Variance With Final Budget Positive (Negative) $ 1,722,719 207,490 356,025 23,155 2,309,389 Original Budget Revenues: Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ $ Final Budget $ Actual Amounts 1,722,719 207,490 356,025 23,155 2,309,389 20,218,830 440,495,162 13,218,170 473,932,162 (473,932,162) 473,932,162 473,932,162 $ 20,643,574 422,428,527 35,472,805 478,544,906 (478,544,906) 481,853,826 (3,308,920) 478,544,906 $ 20,369,454 415,387,129 26,124,007 461,880,590 (459,571,201) 481,337,223 (20,555,373) 460,781,850 1,210,649 6,005,945 7,216,594 $ 274,120 7,041,398 9,348,798 16,664,316 18,973,705 (516,603) (17,246,453) (17,763,056) 1,210,649 6,005,945 7,216,594 NOTE: The effective legal level of budget control is maintained at the department or fund level. A separate detailed report providing this information is available for inspection at the Office of Financial Management and Budget. Annual budgets are legally adopted for all governmental and proprietary fund types. Budgetary comparisons presented herein are on a basis consistent with GAAP. 115 REQUIRED SUPPLEMENTARY INFORMATION Palm Tran Pension Plan Schedule of Funding Progress Actuarial Accrued Liability (AAL) Entry Age (b) $ 50,729,230 56,979,616 68,301,400 UAAL as a Percentage of Covered Payroll ((b - a) / c) 43.3% 46.1% 95.5% Actuarial Valuation Date 1/1/07 1/1/08 1/1/09 Actuarial Value of Assets (a) $ 42,001,404 47,083,495 44,799,056 Unfunded AAL (UAAL) (b - a) $ 8,727,826 9,896,121 23,502,344 Funded Ratio (a / b) 82.8% 82.6% 65.6% Covered Payroll (c) $ 20,148,949 21,454,569 24,611,065 Lantana Firefighter's Pension Plan Schedule of Funding Progress Actuarial Accrued Liability (AAL) Entry Age (b) $ 16,503,178 18,738,959 20,323,618 UAAL as a Percentage of Covered Payroll ((b - a) / c) 240.0% 207.7% 204.9% Actuarial Valuation Date 9/30/06 9/30/07 9/30/08 Actuarial Value of Assets (a) $ 10,313,560 13,077,720 14,943,792 Unfunded AAL (UAAL) (b - a) $ 6,189,618 5,661,239 5,379,826 Funded Ratio (a / b) 62.5% 69.8% 73.5% Covered Payroll (c) $ 2,578,891 2,725,760 2,625,962 116 REQUIRED SUPPLEMENTARY INFORMATION Palm Beach County Primary Government Healthcare Plans Schedule of Funding Progress Actuarial Accrued Liability (AAL) Entry Age (b) $ 14,638,000 UAAL as a Percentage of Covered Payroll ((b - a) / c) 5.0% Actuarial Valuation Date County 10/1/2007 Tax Collector 10/1/2007 Property Appraiser 10/1/2007 Clerk & Comptroller 10/1/2007 Sheriff 1/1/2008 1/1/2009 Solid Waste Authority 10/1/2008 Fire Rescue Union 10/1/2005 10/1/2008 $ Actuarial Value of Assets (a) Unfunded AAL (UAAL) (b - a) $ 14,638,000 Funded Ratio (a / b) 0.0% Covered Payroll (c) $294,272,546 - 1,533,513 1,533,513 0.0% 9,879,680 15.5% - 312,788 312,788 0.0% 14,237,382 2.2% - 5,445,000 5,445,000 0.0% 35,775,864 15.2% - 169,700,000 182,500,000 169,700,000 182,500,000 0.0% 0.0% 222,956,243 248,925,472 76.1% 73.3% - 1,440,000 1,440,000 0.0% 21,254,000 6.8% 7,109,107 14,544,477 16,319,357 153,500,000 9,210,250 138,955,523 43.6% 9.5% 102,075,035 108,788,372 9.0% 127.7% Note 1 Palm Beach County Fire Rescue Taxing District Long Term Disability Plan Schedule of Funding Progress Actuarial Accrued Liability (AAL) Entry Age (b) $ 8,953,897 7,634,577 $ UAAL as a Percentage of Covered Payroll ((b - a) / c) 7.7% 6.4% Actuarial Valuation Date 10/1/2007 10/1/2008 $ Actuarial Value of Assets (a) Unfunded AAL (UAAL) (b - a) 8,953,897 7,634,577 Funded Ratio (a / b) 0.0% 0.0% Covered Payroll (c) $116,586,776 119,792,017 Note 1: The increases in the liability and expense associated with the Fire Rescue Union Healthcare Plan are a result of a change in the interpretation of the County's obligation associated with that plan. The prior valuation assumed the County was liable only for an explicit stipend paid from the retiree fund to eligible retirees. The current valuation assumes the County is ultimately liable for the cost of healthcare benefits provided to eligible retirees less the value of retiree contributions. 117 118 C o m b i n i n g a n d I n d i v i d u a l F u n d S tat e m e n t s a n d S c h e d u l e s This subsection includes the combining and individual fund statements and schedules for the following: - Nonmajor Governmental Funds Internal Service Funds Agency Funds - NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Tourist Development - To account for tourist development taxes designated to promote tourism in Palm Beach County. Law Enforcement Grants - To account for revenues to be used for law enforcement grants, including but not limited to the Local Law Enforcement Block Grants, "LLEBG". County Transportation Trust - To account for ad-valorem taxes, gas taxes and other revenues designated for the construction and maintenance of County roads. Municipal Service Taxing District - To account for revenues to be used in the unincorporated areas of the County for services rendered. Library Taxing District - To account for ad-valorem taxes and governmental grant funds designated to operate and maintain the County's public library system. Community and Social Development - To account for governmental grant funds and other revenues designated for community and social services. Affordable Housing Trust Fund (SHIP)- To account for intergovernmental revenues and other revenues designated for providing standard, affordable housing for persons of low to moderate income. Hurricane Housing Recovery Plan Fund - To account for intergovernmental revenues for the repair/replace/reconstruct/retrofit of single family units for extremely low, very low, and moderate income homeowners. Palm Tran - To account for activities related to the operation of the County-owned public bus transportation system. Other Special Revenue Fund - To account for local half-cent sales taxes and other revenues designated for various services provided by the County. Clerk & Comptroller - To account for all funds received and expended to carry out the duties and responsibilities of the elected office of Clerk & Comptroller. Tax Collector - To account for all funds received and expended to carry out the duties and responsibilities of the elected office of Tax Collector. Property Appraiser - To account for all funds received and expended to carry out the duties and responsibilities of the elected office of Property Appraiser. 119 NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS CONTINUED Supervisor of Elections - To account for all funds received and expended to carry out the duties and responsibilities of the elected office of Supervisor of Elections. DEBT SERVICE FUNDS General Obligation Bonds - To account for the annual debt service requirements of all general obligation bonds. Revenue Bonds - To account for the annual debt service requirements of non advalorem, non self-supporting revenue bonds. Other Financing - To account for the annual debt service requirements of other financing arrangements. CAPITAL PROJECTS FUNDS Criminal Justice - To account for costs related to the design and construction of courthouses, jails and other physical facilities required for the courts, law enforcement and detention operations. Environmental Lands - To account for costs related to the acquisition of environmentally sensitive ecological sites, and for the design and construction of beach improvements such as sand/beach re-nourishment or dune replacement projects. Fire Rescue - To account for costs related to the design, acquisition and construction of fire stations, training and administrative facilities, and equipment acquisitions for new stations. Libraries - To account for costs related to the design, acquisition and construction of libraries, including library materials. Parks and Recreation - To account for costs related to the design, acquisition and construction or expansion of beach, regional, district and community parks including active and passive recreational facilities and administrative facilities for park operations. Street and Drainage - To account for costs related to the design and construction of neighborhood streets, replacing shell rock (dirt) roads and providing drainage associated with the streets. These improvements are primarily funded by assessments against the benefiting properties. 120 121 PALM BEACH COUNTY, FLORIDA Combining Balance Sheet Nonmajor Governmental Funds September 30, 2009 Municipal Law County Service Tourist Enforcement Transportation Taxing Development Grants Trust District Special Revenue Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Inventory Other assets Other receivable, noncurrent Total assets LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to individuals Deferred and unearned revenue Other liabilities Total liabilities FUND BALANCE Fund balances: Reserved for debt service Reserved for inventory Unreserved, reported in: Special Revenue Funds Capital Projects Funds Total fund balance Total liabilities and fund balance $ 18,488,185 18,488,185 23,652,691 $ 2,168,574 2,168,574 5,097,430 $ 3,217,067 11,826,916 15,043,983 17,289,838 $ 1,073,525 1,073,525 1,498,527 $ 1,449,408 194,065 11,879 3,509,154 5,164,506 $ 1,325,791 125,787 1,477,278 2,928,856 $ 1,495,235 740,238 10,382 2,245,855 $ 283,081 141,921 425,002 $ 19,508,856 9,154 634,681 3,500,000 23,652,691 $ 3,586,406 1,511,024 5,097,430 $ 11,200,522 280 2,475,527 396,442 3,217,067 17,289,838 $ 1,481,978 16,549 1,498,527 $ $ $ $ 122 Library Community Affordable Hurricane Taxing and Social Housing (SHIP) Housing Recovery Palm Clerk & District Development Trust Fund Plan Fund Tran Other Comptroller Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund Fund Fund Fund $ 13,968,343 4,432 621,119 14,593,894 $ 3,150 739,314 7,083,173 12,135,635 1,178,583 21,139,855 $ 10,107,909 4,138 9,946 10,121,993 $ 87,478 87,478 $ 5,169,710 37,713 7,954,457 1,846,462 15,008,342 $ 99,774,331 2,968,967 194,285 9,234,619 55,413 5,850 - $ 21,942,508 158,507 1,147,865 94,707 23,343,587 $ $ $ $ $ $ 112,233,465 $ $ 1,456,865 197,126 10,184 1,664,175 $ 4,849,417 7,239,031 1,864,493 74,554 3,615,992 17,643,487 $ 226,976 119,606 346,582 $ 689 689 $ 3,905,024 1,207,998 27,424 717,473 5,857,919 $ 1,209,049 34,762,942 365,118 2,775 2,929,881 39,269,765 $ 3,607,942 1,706,336 3,770,263 360,000 346,557 9,791,098 12,929,719 12,929,719 $ 14,593,894 $ 3,496,368 3,496,368 21,139,855 $ 9,775,411 9,775,411 10,121,993 $ 86,789 86,789 87,478 $ 1,846,462 7,303,961 9,150,423 15,008,342 55,413 72,908,287 72,963,700 $ 112,233,465 $ 13,552,489 13,552,489 23,343,587 123 (continued) PALM BEACH COUNTY, FLORIDA Combining Balance Sheet Nonmajor Governmental Funds September 30, 2009 Tax Property Supervisor of Collector Appraiser Elections Special Revenue Special Revenue Special Revenue Fund Fund Fund ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Inventory Other assets Other receivable, noncurrent Total assets LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to individuals Deferred and unearned revenue Other liabilities Total liabilities FUND BALANCE Fund balances: Reserved for debt service Reserved for inventory Unreserved, reported in: Special Revenue Funds Capital Projects Funds Total fund balance Total liabilities and fund balance $ 44,674,499 $ 4,096,462 $ 1,056,809 $ 1,077,930 37,639,490 5,501,494 455,585 44,674,499 $ 1,178,547 2,270,457 298,193 349,265 4,096,462 $ 159,766 863,960 33,083 1,056,809 $ 43,782,063 28,476 11,158 852,802 44,674,499 $ 4,035,687 60,775 4,096,462 $ 1,056,149 660 1,056,809 Total Special Revenue Funds $ 232,118,684 3,967,530 15,118,321 31,338,042 5,118,942 1,554,768 4,678,583 $ 293,894,870 $ $ $ $ 20,899,240 88,408,961 12,018,300 437,329 13,054,628 347,246 135,165,704 5,118,942 153,610,224 158,729,166 $ 293,894,870 124 General Obligation Bonds Debt Service Revenue Bonds Debt Service Other Financing Debt Service Total Debt Service Funds Criminal Justice Capital Projects Environmental Lands Capital Projects Fire Rescue Capital Projects $ 1,894,554 1,894,554 $ 27,120,563 10,859,679 37,980,242 $ 545,640 545,640 $ 29,560,757 10,859,679 40,420,436 $ 158,439,822 1,638 $ 158,441,460 $ 26,812,405 2,480 378,631 719,961 27,913,477 $ 50,935,894 15,906 200 50,952,000 $ $ $ $ $ $ $ 391 391 $ 10,859,679 10,859,679 $ - $ 391 10,859,679 10,860,070 $ 7,547,132 62,942 7,610,074 $ 2,482,265 193,150 10,000 2,685,415 $ 4,316,089 4,316,089 1,894,163 1,894,163 $ 1,894,554 $ 27,120,563 27,120,563 37,980,242 $ 545,640 545,640 545,640 $ 29,560,366 29,560,366 40,420,436 150,831,386 150,831,386 $ 158,441,460 $ 25,228,062 25,228,062 27,913,477 $ 46,635,911 46,635,911 50,952,000 125 (continued) PALM BEACH COUNTY, FLORIDA Combining Balance Sheet Nonmajor Governmental Funds September 30, 2009 Libraries Capital Projects ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Inventory Other assets Other receivable, noncurrent Total assets LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to individuals Deferred and unearned revenue Other liabilities Total liabilities FUND BALANCE Fund balances: Reserved for debt service Reserved for inventory Unreserved, reported in: Special Revenue Funds Capital Projects Funds Total fund balance Total liabilities and fund balance 61,630,074 61,630,074 $ 63,540,511 $ 1,910,437 1,910,437 $ $ 63,536,209 51 4,251 $ 63,540,511 Parks and Recreation Capital Projects Street and Drainage Capital Projects Total Capital Projects Funds Total Nonmajor Governmental Funds $ 66,193,267 638 476,050 $ 66,669,955 $ 10,284,956 6,970,890 3,435 $ 17,259,281 $ 376,202,553 6,974,059 382,066 1,217,806 200 $ 384,776,684 $ 637,881,994 10,941,589 15,500,387 32,555,848 5,118,942 1,554,968 15,538,262 $ 719,091,990 1,880,956 1,880,956 $ 117,346 6,970,891 7,088,237 $ 18,254,225 62,942 7,164,041 10,000 25,491,208 $ 39,153,856 88,471,903 12,018,300 437,329 31,078,348 357,246 171,516,982 64,788,999 64,788,999 $ 66,669,955 10,171,044 10,171,044 $ 17,259,281 359,285,476 359,285,476 $ 384,776,684 29,560,366 5,118,942 153,610,224 359,285,476 547,575,008 $ 719,091,990 126 (concluded) 127 PALM BEACH COUNTY, FLORIDA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the fiscal year ended September 30, 2009 Municipal Law County Service Tourist Enforcement Transportation Taxing Development Grants Trust District Special Revenue Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Less - excess fees paid out Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase (decrease) in reserves, inventory Fund balances, September 30, 2009 $ $ 22,346,492 250,000 3,270,521 1,759,571 3,093 27,629,677 $ 3,507,693 886,441 236,914 48,125 4,679,173 $ 1,710 1,179,903 12,405 6,038,643 1,643,347 774,668 1,229,467 10,880,143 $ 8,225,393 498,916 40,324 100,837 5,301 8,870,771 18,582,010 18,582,010 9,047,667 (19,122,962) (19,122,962) (10,075,295) 28,563,480 18,488,185 $ 82,100 408,921 491,021 4,188,152 664,063 (4,677,679) (4,013,616) 174,536 1,994,038 2,168,574 $ 43,608,467 75,504 1,971,725 45,655,696 (34,775,553) 30,374,420 (66,200) 30,308,220 (4,467,333) 19,709,926 (198,610) 15,043,983 $ 13,340,449 13,340,449 (4,469,678) 1,806,782 1,806,782 (2,662,896) 3,736,421 1,073,525 128 Library Community Affordable Hurricane Taxing and Social Housing (SHIP) Housing Recovery Palm Clerk & District Development Trust Fund Plan Fund Tran Other Comptroller Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund Fund Fund Fund $ 41,547,506 45,580 944,936 6,619 481,925 1,855,839 201,126 45,083,531 $ 50,697,579 527,250 591,884 469,628 52,286,341 $ 8,588,113 670,633 105,326 9,364,072 $ 19,485 4,761 24,246 $ 12,227,627 22,069,012 9,899,827 578,763 1,779,924 46,555,153 $ 28,627,572 2,984,259 5,414,412 76,949,581 15,021,196 2,446,097 7,351,934 3,178,638 141,973,689 $ 9,050,627 30,677,916 5,019,244 126,637 2,192,819 47,067,243 35,217,144 4,406,120 39,623,264 5,460,267 (4,269,583) (4,269,583) 1,190,684 11,739,035 $ 12,929,719 $ 1,538,999 17,332,302 47,532,578 285,611 158,356 66,847,846 (14,561,505) 12,464,685 (349,748) 1,199,000 13,313,937 (1,247,568) 4,743,936 3,496,368 $ 10,660,648 10,660,648 (1,296,576) (1,296,576) 11,071,987 9,775,411 $ 379,404 379,404 (355,158) (355,158) 441,947 86,789 $ 72,435,085 5,909,363 78,344,448 (31,789,295) 39,286,263 (3,341,018) 35,945,245 4,155,950 5,089,656 (95,183) 9,150,423 $ 9,269,878 8,932,888 7,282,731 486,922 693,652 4,715,037 1,392,914 32,774,022 109,199,667 5,992,465 (124,808,803) (118,816,338) (9,616,671) 82,574,610 5,761 72,963,700 $ 66,158,575 540,397 66,698,972 (19,631,729) 16,696,435 (492,167) 16,204,268 (3,427,461) 16,979,950 13,552,489 129 (continued) PALM BEACH COUNTY, FLORIDA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds (continued) For the fiscal year ended September 30, 2009 Tax Property Supervisor of Collector Appraiser Elections Special Revenue Special Revenue Special Revenue Fund Fund Fund Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Less - excess fees paid out Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase (decrease) in reserves, inventory Fund balances, September 30, 2009 $ $ - $ 63,687,819 (43,007,124) 176,309 20,857,004 - $ 24,447,093 (2,428,350) 38,697 22,057,440 230,150 47,854 13,688 48,384 340,076 Total Special Revenue Funds $ 104,750,907 4,164,162 13,697,790 178,326,334 149,728,358 (45,435,474) 8,874,031 14,295,859 9,266,592 437,668,559 20,624,628 232,376 20,857,004 $ 21,997,700 55,156 4,584 22,057,440 $ 8,846,078 635,608 9,481,686 (9,141,610) 9,997,168 (855,558) 9,141,610 - 126,978,959 24,221,257 7,282,731 116,043,552 47,516,790 48,226,230 39,932,181 15,429,270 162,940 425,793,910 11,874,649 117,282,281 (157,983,718) 1,199,000 (39,502,437) (27,627,788) 186,644,986 (288,032) $ 158,729,166 130 General Obligation Bonds Debt Service $ 32,254,686 189 1,024,858 33,279,733 $ Revenue Bonds Debt Service 2,043,477 304,565 2,348,042 $ Other Financing Debt Service 284,293 284,293 $ Total Debt Service Funds 32,254,686 189 3,352,628 304,565 35,912,068 $ Criminal Justice Capital Projects 118,766 12,904,401 3,615 13,026,782 Environmental Lands Capital Projects $ 2,199,047 690,973 11,520 1,726,274 35,643 4,663,457 $ Fire Rescue Capital Projects 356,263 3,204 3,747,768 2,986 4,110,221 2,761 34,664,317 34,667,078 (1,387,345) (1,387,345) 3,281,508 $ 1,894,163 $ 92,318,563 92,318,563 (89,970,521) 90,414,044 (948,756) 89,465,288 (505,233) 27,625,796 27,120,563 $ 4,320,658 4,320,658 (4,036,365) 52,055,604 (2,784,598) (47,904,895) 1,366,111 (2,670,254) 3,215,894 545,640 $ 2,761 131,303,538 131,306,299 (95,394,231) 142,469,648 (3,733,354) (47,904,895) 90,831,399 (4,562,832) 34,123,198 29,560,366 244,119 7,500 42,588,719 220,171 43,060,509 (30,033,727) (2,913,135) (2,913,135) (32,946,862) 183,778,248 $ 150,831,386 $ 5,266,030 8,215,676 13,481,706 (8,818,249) 13,017,961 (54,779) 12,963,182 4,144,933 21,083,129 25,228,062 $ 1,541,608 9,248,746 10,790,354 (6,680,133) 6,200,000 (2,098,164) 4,101,836 (2,578,297) 49,214,208 46,635,911 131 (continued) PALM BEACH COUNTY, FLORIDA Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the fiscal year ended September 30, 2009 Libraries Capital Projects Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Less - excess fees paid out Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase (decrease) in reserves, inventory Fund balances, September 30, 2009 $ 63 119,448 350,000 4,908,675 134 5,378,320 $ Parks and Recreation Capital Projects 1,027,504 1,969,638 5,140 5,300,494 90,759 8,393,535 $ Street and Drainage Capital Projects 495,452 1,083,554 1,579,006 Total Capital Projects Funds $ 63 2,117,433 4,518,685 699,317 11,520 29,671,166 133,137 37,151,321 Total Nonmajor Governmental Funds $ 137,005,656 6,281,595 13,697,790 182,845,208 150,427,675 (45,435,474) 8,885,551 47,319,653 9,704,294 510,731,948 1,151,975 16,872,256 18,024,231 (12,645,911) 4,269,583 4,269,583 (8,376,328) 70,006,402 $ 61,630,074 195,101 10,987 59,024 3,310,311 15,328,592 639,180 19,543,195 (11,149,660) 1,286,000 (750,241) 535,759 (10,613,901) 75,402,900 $ 64,788,999 163,219 49 3,138,005 3,301,273 (1,722,267) (1,722,267) 11,893,311 $ 10,171,044 439,220 1,560,095 5,325,054 163,219 49 4,462,286 95,391,994 859,351 108,201,268 (71,049,947) 24,773,544 (5,816,319) 18,957,225 (52,092,722) 411,378,198 $ 359,285,476 127,420,940 25,781,352 12,607,785 116,206,771 47,516,839 48,226,230 44,394,467 110,821,264 132,325,829 665,301,477 (154,569,529) 284,525,473 (167,533,391) 1,199,000 (47,904,895) 70,286,187 (84,283,342) 632,146,382 (288,032) $ 547,575,008 132 (concluded) PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tourist Development Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Economic environment Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 28,256,391 $ 250,000 3,460,049 833,514 (1,627,498) 31,172,456 Final Budget 28,256,391 250,000 3,460,049 833,514 (1,627,498) 31,172,456 $ Actual Amounts 22,346,492 250,000 3,270,521 1,759,571 3,093 27,629,677 Variance With Final Budget Positive (Negative) $ (5,909,899) (189,528) 926,057 3,093 1,627,498 (3,542,779) 44,975,304 44,975,304 (13,802,848) (11,766,606) (11,766,606) (25,569,454) 25,569,454 $ 40,284,155 40,284,155 (9,111,699) (19,451,781) (19,451,781) (28,563,480) 28,563,480 $ 18,582,010 18,582,010 9,047,667 (19,122,962) (19,122,962) (10,075,295) 28,563,480 18,488,185 $ 21,702,145 21,702,145 18,159,366 328,819 328,819 18,488,185 18,488,185 133 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Law Enforcement Grants Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Public safety Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 94,140 60,000 154,140 $ Final Budget 6,698,918 64,500 116,900 6,880,318 $ Actual Amounts 3,507,693 886,441 236,914 48,125 4,679,173 Variance With Final Budget Positive (Negative) $ (3,191,225) 886,441 172,414 (68,775) (2,201,145) 1,708,210 1,708,210 (1,554,070) 596,264 (512,345) 83,919 (1,470,151) 1,470,151 $ 141,774 2,190,869 1,200 2,333,843 4,546,475 695,264 (8,175,242) (7,479,978) (2,933,503) 2,933,503 $ 82,100 408,921 491,021 4,188,152 664,063 (4,677,679) (4,013,616) 174,536 1,994,038 2,168,574 $ 59,674 1,781,948 1,200 1,842,822 (358,323) (31,201) 3,497,563 3,466,362 3,108,039 (939,465) 2,168,574 134 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual County Transportation Trust Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Transportation Economic environment Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 (Decrease) in reserves, inventory Fund balances, September 30, 2009 $ $ 10,000 2,550,000 6,000 5,779,296 870,000 565,091 1,698,556 (447,744) 11,031,199 $ Final Budget 10,000 2,550,000 6,000 10,144,569 870,000 565,091 920,965 (447,744) 14,618,881 $ Actual Amounts 1,710 1,179,903 12,405 6,038,643 1,643,347 774,668 1,229,467 10,880,143 Variance With Final Budget Positive (Negative) $ (8,290) (1,370,097) 6,405 (4,105,926) 773,347 209,577 308,502 447,744 (3,738,738) 52,111,787 75,504 5,069,801 57,257,092 (46,225,893) 27,196,594 (66,200) 27,130,394 (19,095,499) 19,095,499 $ 55,816,169 75,504 5,329,676 61,221,349 (46,602,468) 30,374,420 (66,200) 30,308,220 (16,294,248) 16,294,248 $ 43,608,467 75,504 1,971,725 45,655,696 (34,775,553) 30,374,420 (66,200) 30,308,220 (4,467,333) 19,709,926 (198,610) 15,043,983 $ 12,207,702 3,357,951 15,565,653 11,826,915 11,826,915 3,415,678 (198,610) 15,043,983 135 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Municipal Service Taxing District Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Licenses and permits Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Public safety Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 13,501,500 787,610 50,000 413,000 100 (737,611) 14,014,599 $ Final Budget 7,001,500 456,000 40,000 149,000 3,408 7,649,908 $ Actual Amounts 8,225,393 498,916 40,324 100,837 5,301 8,870,771 Variance With Final Budget Positive (Negative) $ 1,223,893 42,916 324 (48,163) 1,893 1,220,863 19,241,696 100,817 19,342,513 (5,327,914) (5,327,914) 5,327,914 $ 13,193,111 13,193,111 (5,543,203) 1,806,782 1,806,782 (3,736,421) 3,736,421 $ 13,340,449 13,340,449 (4,469,678) 1,806,782 1,806,782 (2,662,896) 3,736,421 1,073,525 $ (147,338) (147,338) 1,073,525 1,073,525 1,073,525 136 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Library Taxing District Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Culture and recreation Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 43,171,980 31,000 1,338,535 75,000 380,000 700,000 244,476 (2,229,999) 43,710,992 $ Final Budget 43,171,980 31,000 942,876 75,000 380,000 700,000 244,476 (2,229,999) 43,315,333 $ Actual Amounts 41,547,506 45,580 944,936 6,619 481,925 1,855,839 201,126 45,083,531 Variance With Final Budget Positive (Negative) $ (1,624,474) 14,580 2,060 (68,381) 101,925 1,155,839 (43,350) 2,229,999 1,768,198 43,562,933 5,922,678 49,485,611 (5,774,619) (4,269,583) (4,269,583) (10,044,202) 10,044,202 $ 44,864,924 5,919,861 50,784,785 (7,469,452) (4,269,583) (4,269,583) (11,739,035) 11,739,035 $ 35,217,144 4,406,120 39,623,264 5,460,267 (4,269,583) (4,269,583) 1,190,684 11,739,035 12,929,719 $ 9,647,780 1,513,741 11,161,521 12,929,719 12,929,719 12,929,719 137 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community & Social Development Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Public safety Economic environment Human services Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 93,223,916 459,575 390,215 661,393 (1,676) 94,733,423 Final Budget $ 140,994,912 459,575 390,215 760,285 (1,676) 142,603,311 $ Actual Amounts 50,697,579 527,250 591,884 469,628 52,286,341 Variance With Final Budget Positive (Negative) $ (90,297,333) 67,675 201,669 (290,657) 1,676 (90,316,970) 1,938,499 58,201,570 53,704,061 455,935 160,000 114,460,065 (19,726,642) 14,393,945 (279,194) 14,114,751 (5,611,891) 5,611,891 $ 2,671,179 113,320,114 61,554,253 567,156 161,000 178,273,702 (35,670,391) 14,672,061 (697,346) 15,940,000 29,914,715 (5,755,676) 5,755,676 $ 1,538,999 17,332,302 47,532,578 285,611 158,356 66,847,846 (14,561,505) 12,464,685 (349,748) 1,199,000 13,313,937 (1,247,568) 4,743,936 3,496,368 $ 1,132,180 95,987,812 14,021,675 281,545 2,644 111,425,856 21,108,886 (2,207,376) 347,598 (14,741,000) (16,600,778) 4,508,108 (1,011,740) 3,496,368 138 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Affordable Housing (SHIP) Trust Fund Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Investment income Miscellaneous Total revenues Expenditures: Current: Economic environment Total expenditures Excess of revenues over (under) expenditures Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 8,775,479 414,000 225,000 9,414,479 $ Final Budget 9,158,984 414,000 225,000 9,797,984 $ Actual Amounts 8,588,113 670,633 105,326 9,364,072 Variance With Final Budget Positive (Negative) $ (570,871) 256,633 (119,674) (433,912) 19,624,953 19,624,953 (10,210,474) (10,210,474) 10,210,474 $ 20,869,971 20,869,971 (11,071,987) (11,071,987) 11,071,987 $ 10,660,648 10,660,648 (1,296,576) (1,296,576) 11,071,987 9,775,411 $ 10,209,323 10,209,323 9,775,411 9,775,411 9,775,411 139 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Hurricane Housing Recovery Plan Fund Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Investment income Miscellaneous Total revenues Expenditures: Current: Economic environment Total expenditures Excess of revenues over (under) expenditures Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ $ Final Budget $ Actual Amounts 19,485 4,761 24,246 Variance With Final Budget Positive (Negative) $ 19,485 4,761 24,246 $ 441,947 441,947 (441,947) (441,947) 441,947 $ 379,404 379,404 (355,158) (355,158) 441,947 86,789 $ 62,543 62,543 86,789 86,789 86,789 140 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Palm Tran Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Transportation Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 (Decrease) in reserves, inventory Fund balances, September 30, 2009 $ $ 12,811,000 49,532,323 10,389,466 120,000 1,133,799 (1,240,489) 72,746,099 $ Final Budget 12,811,000 75,896,677 10,514,366 120,000 1,883,799 (1,240,489) 99,985,353 $ Actual Amounts 12,227,627 22,069,012 9,899,827 578,763 1,779,924 46,555,153 Variance With Final Budget Positive (Negative) $ (583,373) (53,827,665) (614,539) 458,763 (103,875) 1,240,489 (53,430,200) 82,445,957 27,628,620 110,074,577 (37,328,478) 39,230,001 (6,858,653) 32,371,348 (4,957,130) 4,957,130 $ 89,480,337 45,542,077 135,022,414 (35,037,061) 39,426,306 (7,537,256) 31,889,050 (3,148,011) 3,148,011 $ 72,435,085 5,909,363 78,344,448 (31,789,295) 39,286,263 (3,341,018) 35,945,245 4,155,950 5,089,656 (95,183) 9,150,423 $ 17,045,252 39,632,714 56,677,966 3,247,766 (140,043) 4,196,238 4,056,195 7,303,961 1,941,645 (95,183) 9,150,423 141 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Other Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Public safety Physical environment Economic environment Human services Culture and recreation Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase in reserves, inventory Fund balances, September 30, 2009 $ $ 35,800,000 4,286,550 725,000 82,862,925 10,105,855 1,911,411 2,183,680 1,822,000 (6,544,338) 133,153,083 $ Final Budget 28,015,000 2,167,567 4,610,000 85,027,647 9,783,448 1,911,411 2,038,053 3,472,673 (6,544,338) 130,481,461 $ Actual Amounts 28,627,572 2,984,259 5,414,412 76,949,581 15,021,196 2,446,097 7,351,934 3,178,638 141,973,689 Variance With Final Budget Positive (Negative) $ 612,572 816,692 804,412 (8,078,066) 5,237,748 534,686 5,313,881 (294,035) 6,544,338 11,492,228 7,007,280 9,886,716 48,219,268 1,914,035 1,220,334 5,703,400 3,232,454 77,183,487 55,969,596 5,021,193 (110,791,943) (105,770,750) (49,801,154) 49,801,154 $ 9,788,634 12,906,157 52,331,400 2,080,597 1,709,763 5,698,304 12,086,169 96,601,024 33,880,437 6,198,482 (122,603,877) (116,405,395) (82,524,958) 82,524,958 $ 9,269,878 8,932,888 7,282,731 486,922 693,652 4,715,037 1,392,914 32,774,022 109,199,667 5,992,465 (124,808,803) (118,816,338) (9,616,671) 82,574,610 5,761 72,963,700 $ 518,756 3,973,269 45,048,669 1,593,675 1,016,111 983,267 10,693,255 63,827,002 75,319,230 (206,017) (2,204,926) (2,410,943) 72,908,287 49,652 5,761 72,963,700 142 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Clerk & Comptroller Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues Expenditures: Current: General government Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 640,744 48,193,138 3,047,628 770,135 2,923,758 55,575,403 $ Final Budget 640,744 45,973,664 3,047,628 770,135 2,923,758 53,355,929 $ Actual Amounts 9,050,627 30,677,916 5,019,244 126,637 2,192,819 47,067,243 Variance With Final Budget Positive (Negative) $ 8,409,883 (15,295,748) 1,971,616 (643,498) (730,939) (6,288,686) 79,463,447 195,731 79,659,178 (24,083,775) 16,696,435 (2,000,000) 14,696,435 (9,387,340) 16,979,950 7,592,610 $ 77,243,973 195,731 77,439,704 (24,083,775) 16,696,435 (2,000,000) 14,696,435 (9,387,340) 16,979,950 7,592,610 $ 66,158,575 540,397 66,698,972 (19,631,729) 16,696,435 (492,167) 16,204,268 (3,427,461) 16,979,950 13,552,489 $ 11,085,398 (344,666) 10,740,732 4,452,046 1,507,833 1,507,833 5,959,879 5,959,879 143 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Tax Collector Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Charges for services Less - excess fees paid out Investment income Total revenues Expenditures: Current: General government Capital outlay Total expenditures Excess of revenues over (under) expenditures Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ Final Budget Actual Amounts Variance With Final Budget Positive (Negative) 426,339 (3,241,648) (248,691) (3,064,000) 63,661,480 $ 63,261,480 $ 63,687,819 $ (42,825,476) (39,765,476) (43,007,124) 500,000 425,000 176,309 21,336,004 23,921,004 20,857,004 20,889,648 446,356 21,336,004 $ 23,589,339 331,665 23,921,004 $ 20,624,628 232,376 20,857,004 $ 2,964,711 99,289 3,064,000 - 144 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Property Appraiser Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Charges for services Less - excess fees paid out Investment income Total revenues Expenditures: Current: General government Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 24,351,444 24,351,444 $ Final Budget 24,351,444 24,351,444 $ Actual Amounts Variance With Final Budget Positive (Negative) 95,649 (2,428,350) 38,697 (2,294,004) 24,447,093 $ (2,428,350) 38,697 22,057,440 24,278,860 68,000 4,584 24,351,444 $ 24,278,860 68,000 4,584 24,351,444 $ 21,997,700 55,156 4,584 22,057,440 $ 2,281,160 12,844 2,294,004 - 145 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supervisor of Elections Special Revenue Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Charges for services Investment income Miscellaneous Total revenues Expenditures: Current: General government Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 230,150 230,150 $ Final Budget 230,150 230,150 $ Actual Amounts 230,150 47,854 13,688 48,384 340,076 Variance With Final Budget Positive (Negative) $ 47,854 13,688 48,384 109,926 10,177,317 50,000 10,227,317 (9,997,167) 9,997,167 9,997,167 $ 10,177,317 50,000 10,227,317 (9,997,167) 9,997,167 9,997,167 $ 8,846,078 635,608 9,481,686 (9,141,610) 9,997,168 (855,558) 9,141,610 $ 1,331,239 (585,608) 745,631 855,557 1 (855,558) (855,557) - 146 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Obligation Bonds Debt Service Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Intergovernmental Investment income Less 5% anticipated revenues Total revenues Expenditures: Current: General government Debt service Total expenditures Excess of revenues over (under) expenditures Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 33,525,601 547,000 (1,703,630) 32,368,971 $ Final Budget 33,525,601 547,000 (1,703,630) 32,368,971 $ Actual Amounts 32,254,686 189 1,024,858 33,279,733 Variance With Final Budget Positive (Negative) $ (1,270,915) 189 477,858 1,703,630 910,762 35,284,516 35,284,516 (2,915,545) (2,915,545) 2,915,545 $ 35,650,478 35,650,478 (3,281,507) (3,281,507) 3,281,507 $ 2,761 34,664,317 34,667,078 (1,387,345) (1,387,345) 3,281,508 1,894,163 $ (2,761) 986,161 983,400 1,894,162 1,894,162 1 1,894,163 147 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Revenue Bonds Debt Service Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Investment income Miscellaneous Total revenues Expenditures: Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 660,000 107,900 767,900 122,814,952 122,814,952 (122,047,052) 89,447,192 (467,900) 88,979,292 (33,067,760) 33,067,760 $ $ Final Budget 505,298 107,900 613,198 122,319,062 122,319,062 (121,705,864) 95,014,045 (933,976) 94,080,069 (27,625,795) 27,625,795 $ $ Actual Amounts 2,043,477 304,565 2,348,042 92,318,563 92,318,563 (89,970,521) 90,414,044 (948,756) 89,465,288 (505,233) 27,625,796 27,120,563 Variance With Final Budget Positive (Negative) $ 1,538,179 196,665 1,734,844 30,000,499 30,000,499 31,735,343 (4,600,001) (14,780) (4,614,781) 27,120,562 1 $ 27,120,563 148 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Other Financing Debt Service Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Investment income Total revenues Expenditures: Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 8,243,442 8,243,442 (8,243,442) 7,115,211 (403,493) 6,711,718 (1,531,724) 1,531,724 $ $ Final Budget 244,833 244,833 4,923,575 4,923,575 (4,678,742) 52,140,316 (2,772,575) (47,904,895) 1,462,846 (3,215,896) 3,215,896 $ $ Actual Amounts 284,293 284,293 4,320,658 4,320,658 (4,036,365) 52,055,604 (2,784,598) (47,904,895) 1,366,111 (2,670,254) 3,215,894 545,640 Variance With Final Budget Positive (Negative) $ 39,460 39,460 602,917 602,917 642,377 (84,712) (12,023) (96,735) 545,642 (2) $ 545,640 149 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Criminal Justice Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Special assessments Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Public safety Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Increase (decrease) in reserves, inventory Fund balances, September 30, 2009 $ $ 250,000 251,000 (25,050) 475,950 $ Final Budget 105,000 619,000 (25,050) 698,950 $ Actual Amounts 118,766 12,904,401 3,615 13,026,782 Variance With Final Budget Positive (Negative) $ 13,766 12,285,401 3,615 25,050 12,327,832 157,612 17,923,660 39,643 18,120,915 (17,644,965) (27,351,362) (27,351,362) (44,996,327) 44,996,327 $ 248,522 9,678 156,683,303 263,249 157,204,752 (156,505,802) (27,272,446) (27,272,446) (183,778,248) 183,778,248 - 244,119 7,500 42,588,719 220,171 43,060,509 (30,033,727) (2,913,135) (2,913,135) (32,946,862) 183,778,248 $ 150,831,386 4,403 2,178 114,094,584 43,078 114,144,243 126,472,075 24,359,311 24,359,311 150,831,386 $ 150,831,386 150 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Environmental Lands Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Physical environment Culture and recreation Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 3,074,205 40,000 1,072,000 (55,600) 4,130,605 $ Final Budget 41,112,305 1,315,975 40,000 1,072,000 109,375 (55,600) 43,594,055 $ Actual Amounts 2,199,047 690,973 11,520 1,726,274 35,643 4,663,457 Variance With Final Budget Positive (Negative) $ (38,913,258) (625,002) (28,480) 654,274 (73,732) 55,600 (38,930,598) 2,108 26,447,933 4,401 2,907,399 29,361,841 (25,231,236) 3,055,635 3,055,635 (22,175,601) 22,175,601 $ 2,051 51,778,019 31,089,045 82,869,115 (39,275,060) 18,331,082 (139,151) 18,191,931 (21,083,129) 21,083,129 $ 5,266,030 8,215,676 13,481,706 (8,818,249) 13,017,961 (54,779) 12,963,182 4,144,933 21,083,129 25,228,062 $ 2,051 46,511,989 22,873,369 69,387,409 30,456,811 (5,313,121) 84,372 (5,228,749) 25,228,062 25,228,062 151 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Rescue Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Special assessments Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Public safety Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 842,000 925,000 350,000 (88,350) 2,028,650 $ Final Budget 400,000 925,000 350,000 (88,350) 1,586,650 $ Actual Amounts 356,263 3,204 3,747,768 2,986 4,110,221 Variance With Final Budget Positive (Negative) $ (43,737) 3,204 2,822,768 (347,014) 88,350 2,523,571 1,736,057 62,241,235 63,977,292 (61,948,642) 6,200,000 6,200,000 (55,748,642) 55,748,642 $ 2,869,589 52,033,104 54,902,693 (53,316,043) 6,200,000 (2,098,164) 4,101,836 (49,214,207) 49,214,207 $ 1,541,608 9,248,746 10,790,354 (6,680,133) 6,200,000 (2,098,164) 4,101,836 (2,578,297) 49,214,208 46,635,911 $ 1,327,981 42,784,358 44,112,339 46,635,910 46,635,910 1 46,635,911 152 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Fund - General Government Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Special assessments Intergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 722,408 18,720,783 3,360,101 900,000 4,769,000 39,250 (454,400) 28,057,142 $ Final Budget 544,169 25,512,505 3,476,558 900,000 4,769,000 3,623,293 (454,400) 38,371,125 $ Actual Amounts 330 265,728 3,233,794 788,494 1,184,138 15,852,616 1,921,816 23,246,916 Variance With Final Budget Positive (Negative) $ 330 (278,441) (22,278,711) (2,688,064) 284,138 11,083,616 (1,701,477) 454,400 (15,124,209) 81,524,195 377,219 6,386,864 1,096,565 51,798,063 95,976 124,939,135 534,356 266,752,373 (238,695,231) 26,186,643 (14,587,283) 11,599,360 (227,095,871) 227,095,871 $ 139,657,514 375,150 12,405,573 1,318,774 29,571,919 95,976 120,925,344 2,011,653 306,361,903 (267,990,778) 38,284,906 (66,858,281) 110,735,000 1,784,444 83,946,069 (184,044,709) 184,044,709 - 27,589,326 423,392 3,931,516 1,006,381 23,206,219 20,140,230 1,103,585 77,400,649 (54,153,733) 37,179,660 (64,938,281) 58,645,760 804,667 51,730,000 979,778 84,401,584 30,247,851 186,094,712 $ 216,342,563 112,068,188 (48,242) 8,474,057 312,393 6,365,700 95,976 100,785,114 908,068 228,961,254 213,837,045 (1,105,246) 1,920,000 (52,089,240) (979,777) 51,730,000 979,778 455,515 214,292,560 2,050,003 $ 216,342,563 153 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Libraries Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Special assessments Intergovernmental Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Public safety Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 200,000 1,000,000 3,173,923 (168,697) 4,205,226 $ Final Budget 80,455 1,050,000 3,173,923 (168,697) 4,135,681 $ Actual Amounts 63 119,448 350,000 4,908,675 134 5,378,320 Variance With Final Budget Positive (Negative) $ 63 38,993 (700,000) 1,734,752 134 168,697 1,242,639 1 1,829,284 81,466,850 44,961 83,341,096 (79,135,870) 4,269,583 4,269,583 (74,866,287) 74,866,287 $ 2,726,068 75,640,637 44,961 78,411,666 (74,275,985) 4,269,583 4,269,583 (70,006,402) 70,006,402 $ 1,151,975 16,872,256 18,024,231 (12,645,911) 4,269,583 4,269,583 (8,376,328) 70,006,402 61,630,074 $ 1,574,093 58,768,381 44,961 60,387,435 61,630,074 61,630,074 61,630,074 154 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks and Recreation Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Special assessments Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Public safety Physical environment Economic environment Culture and recreation Capital outlay Debt service Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 2,690,000 2,027,000 3,377,000 293,260 (419,363) 7,967,897 $ Final Budget 1,140,000 3,766,826 3,377,000 293,260 (419,363) 8,157,723 $ Actual Amounts 1,027,504 1,969,638 5,140 5,300,494 90,759 8,393,535 Variance With Final Budget Positive (Negative) $ (112,496) (1,797,188) 5,140 1,923,494 (202,501) 419,363 235,812 2,687,271 287,307 2 29,710,105 60,154,351 51,084 92,890,120 (84,922,223) (750,000) (750,000) (85,672,223) 85,672,223 $ 580 11,973 32,640 2 28,268,406 55,175,972 690,265 84,179,838 (76,022,115) 1,369,450 (750,235) 619,215 (75,402,900) 75,402,900 $ 195,101 10,987 59,024 3,310,311 15,328,592 639,180 19,543,195 (11,149,660) 1,286,000 (750,241) 535,759 (10,613,901) 75,402,900 64,788,999 $ (194,521) 986 (26,384) 2 24,958,095 39,847,380 51,085 64,636,643 64,872,455 (83,450) (6) (83,456) 64,788,999 64,788,999 155 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Major Fund - Road Program Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Taxes (net of discount) Special assessments Intergovernmental Charges for services Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: General government Transportation Economic environment Culture and recreation Capital outlay Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 34,776,000 13,967,303 52,371,625 1,320,300 7,982,120 5,099,802 (3,397,518) 112,119,632 $ Final Budget 34,776,000 9,538,171 58,542,363 1,320,300 7,982,120 5,146,306 (3,397,518) 113,907,742 $ Actual Amounts 33,243,387 5,932,998 18,327,804 26,719,373 3,548,171 87,771,733 Variance With Final Budget Positive (Negative) $ (1,532,613) (3,605,173) (40,214,559) (1,320,300) 18,737,253 (1,598,135) 3,397,518 (26,136,009) 5,727,417 16,548,088 630,038 1,000,000 450,026,745 473,932,288 (361,812,656) 816,200 (35,700,532) (34,884,332) (396,696,988) 396,696,988 $ 5,727,417 18,382,160 700,038 500,000 430,765,955 456,075,570 (342,167,828) 816,200 (36,330,532) (35,514,332) (377,682,160) 377,682,160 - 2,802,516 5,329,137 42,408 500,000 63,578,469 72,252,530 15,519,203 816,200 (36,330,531) (35,514,331) (19,995,128) 377,715,734 $ 357,720,606 2,924,901 13,053,023 657,630 367,187,486 383,823,040 357,687,031 1 1 357,687,032 33,574 $ 357,720,606 156 PALM BEACH COUNTY, FLORIDA Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Street and Drainage Capital Projects Fund For the fiscal year ended September 30, 2009 Original Budget Revenues: Special assessments Investment income Miscellaneous Less 5% anticipated revenues Total revenues Expenditures: Current: Transportation Economic environment Capital outlay Total expenditures Excess of revenues over (under) expenditures Total other financing sources (uses) Net change in fund balances Fund balances, October 1, 2008 Fund balances, September 30, 2009 $ $ 1,145,000 607,000 17,385 (87,500) 1,681,885 $ Final Budget 258,306 901,521 (45,125) 1,114,702 $ Actual Amounts 495,452 1,083,554 1,579,006 Variance With Final Budget Positive (Negative) $ 237,146 182,033 45,125 464,304 846,594 17,385 14,919,760 15,783,739 (14,101,854) (14,101,854) 14,101,854 $ 363,985 1,396 12,642,632 13,008,013 (11,893,311) (11,893,311) 11,893,311 $ 163,219 49 3,138,005 3,301,273 (1,722,267) (1,722,267) 11,893,311 10,171,044 $ 200,766 1,347 9,504,627 9,706,740 10,171,044 10,171,044 10,171,044 157 158 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 Management - To account for the cost of operations for the repair and maintenance of County owned/leased vehicles and equipment as well as interdepartmental rental of cars, trucks and specialized equipment and automated fuel service. Such costs are billed to user departments at estimated cost of operations including equipment replacement and additions. Combined Insurance Fund - To account for the assessed premiums, claims and administration of the County's Risk Management Department for general, auto and property liability, employee group health, and workers' compensation. ISS - To account for the costs of operating the County Data Processing Facility. Such costs are billed to user departments at estimated cost of operations including equipment replacement and additions. Clerk & Comptroller Insurance Fund - To account for the assessed premiums, claims and administration of the Clerk & Comptroller's employee group health insurance program. 159 PALM BEACH COUNTY, FLORIDA Combining Statement of Net Assets Internal Service Funds September 30, 2009 Combined Insurance Fund Clerk & Comptroller Insurance Fund Fleet Management ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Due from component unit Inventory Other assets Total current assets Capital assets: Buildings Improvements other than buildings Furniture, fixtures and equipment Accumulated depreciation Total assets LIABILITIES Current liabilities: Vouchers payable and accrued liabilities Due to other county funds Due to other governments Unearned revenue Current portion of long-term debt Insurance claims payable Total current liabilities Other long-term liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unrestricted Total net assets 27,598,547 13,499,792 $ 41,098,339 $ 11,595,122 38,874 2,210,166 174,306 1,443,287 15,461,755 206,558 512,286 66,015,933 (39,136,230) 43,060,302 ISS Total $ 88,037,644 1,830,324 2,512,244 72,131 3,964 4,713,942 97,170,249 385,218 (273,564) 97,281,903 $ 1,360,843 2,105 2,499,750 7,999 1,519 10,383 3,882,599 32,962,675 (28,718,956) 8,126,318 $ 2,870,549 300,754 446,872 3,618,175 3,618,175 $ 103,864,158 2,172,057 7,669,032 254,436 5,483 1,443,287 4,724,325 120,132,778 206,558 512,286 99,363,826 (68,128,750) 152,086,698 1,166,050 45,149 44,698 52,753 1,308,650 653,313 1,961,963 201,310 37,955 217,122 22,211 20,632,517 21,111,115 34,257,830 55,368,945 1,096,649 89,392 4,960 264,457 1,455,458 2,837,847 4,293,305 6,274 97,166 817,000 920,440 920,440 2,470,283 269,662 222,082 44,698 339,421 21,449,517 24,795,663 37,748,990 62,544,653 111,654 41,801,304 $ 41,912,958 4,137,908 (304,895) $ 3,833,013 2,697,735 $ 2,697,735 31,848,109 57,693,936 $ 89,542,045 160 PALM BEACH COUNTY, FLORIDA Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds For the fiscal year ended September 30, 2009 Combined Insurance Fund $ 77,973,927 77,973,927 81,240,942 6,980 81,247,922 (3,273,995) 6,850,893 1,106,175 7,957,068 4,683,073 (251,797) 4,431,276 37,481,682 $ 41,912,958 Clerk & Comptroller Insurance Fund $ 9,878,179 9,878,179 9,867,523 9,867,523 10,656 12,367 12,367 23,023 23,023 2,674,712 $ 2,697,735 $ Fleet Management Operating revenues: Charges for services Total operating revenues Operating expenses: Transportation services Self-insurance services Data processing services Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Investment income Interest expense Other revenues Total nonoperating revenues (expenses) Income (loss) before capital contributions and transfers Capital contributions Transfers in Transfers out Change in net assets Net Assets October 1, 2008 Net Assets September 30, 2009 $ 27,870,575 27,870,575 19,752,890 8,415,915 28,168,805 (298,230) 905,173 716,128 1,621,301 1,323,071 (156,782) 1,166,289 39,932,050 $ 41,098,339 ISS $ 27,813,172 27,813,172 32,329,614 2,881,976 35,211,590 (7,398,418) 135,369 (6,846) 200,136 328,659 (7,069,759) 2,883,251 1,859,063 (2,327,445) 6,160,458 $ 3,833,013 Total $ 143,535,853 143,535,853 19,752,890 91,108,465 32,329,614 11,304,871 154,495,840 (10,959,987) 7,903,802 (6,846) 2,022,439 9,919,395 (1,040,592) 2,883,251 1,859,063 (408,579) 3,293,143 86,248,902 89,542,045 161 PALM BEACH COUNTY, FLORIDA Combining Statement of Cash Flows Internal Service Funds For the fiscal year ended September 30, 2009 Fleet Management Combined Insurance Fund Cash flows from operating activities: Cash received from customers Cash received from other funds for goods and services Cash payments to vendors for goods and services Cash payments to employees for services Cash payments to other funds Claims paid Other receipts Net cash provided by (used in) operating activities Cash flows from noncapital financing activities: Transfers in Transfers out Net cash provided by (used in) noncapital financing activities Cash flows from capital and related financing activities: Proceeds from sale of capital assets Purchase and construction of capital assets Principal payments on debt Interest payments on debt Net cash (used in) capital and related financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, October 1, 2008 Cash and cash equivalents, September 30, 2009 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization Miscellaneous revenue Change in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other county funds (Increase) decrease in due from other governments (Increase) in inventory (Increase) decrease in other assets (Increase) in due from component unit Increase (decrease) in vouchers payable and accrued liabilities Increase (decrease) in due to other county funds Increase (decrease) in due to other governments Increase in unearned revenue Increase (decrease) in current portion of long-term debt Increase in insurance claims payable Net cash provided by (used in) operating activities Supplemental disclosure of noncash capital and related financing activities: Contribution of capital assets Disposal of fully depreciated capital assets $ 1,608,965 $ 8,356,283 27,129,473 69,143,804 (12,587,069) (11,262,718) (5,620,501) (2,777,233) (1,848,939) (1,226,200) (64,205,822) 76,443 1,106,117 8,758,372 (156,782) (156,782) 1,042,125 (8,259,143) (7,217,018) 905,173 905,173 2,289,745 9,305,377 $ 11,595,122 (865,769) (251,797) (251,797) 58 (90,881) (90,823) 6,850,893 6,850,893 5,642,504 82,395,140 $ 88,037,644 $ (298,230) $ (3,273,995) 8,415,915 76,443 (9,668) 803,817 29,016 (170,427) 13,797 (181,896) 10,753 (1,111) 44,698 25,265 6,980 1,106,117 (200,148) (248,670) (6,785) (400,749) (258) (194,485) 37,510 (17,087) (18,267) 2,344,068 $ (865,769) $ 8,758,372 $ - $ $ 58,229 $ 3,023,847 162 ISS $ Clerk & Comptroller Insurance Fund Total $ 11,549,590 130,918,757 (38,490,990) (27,280,872) (4,734,961) (71,159,899) 1,419,563 2,221,188 1,859,063 (408,579) 1,450,484 1,045,043 (8,369,467) (205,825) (8,763) (7,539,012) 7,903,802 7,903,802 4,036,462 99,827,696 $103,864,158 148,282 $ 1,436,060 26,137,170 8,508,310 (11,900,402) (2,740,801) (18,829,080) (54,058) (1,659,822) (6,954,077) 237,003 (5,866,849) 1,859,063 1,859,063 2,860 (19,443) (205,825) (8,763) (231,171) 135,369 135,369 (4,103,588) 5,464,431 195,434 12,367 12,367 207,801 2,662,748 $ 2,870,549 $ 1,360,843 $ (7,398,418) $ 2,881,976 237,003 4,011 (1,524,313) (5,899) 89,869 (1,519) (304,711) (10,111) 1,943 163,320 $ (5,866,849) $ 10,656 33,750 32,441 6,274 54,436 (7,123) 65,000 195,434 $ (10,959,987) 11,304,871 1,419,563 (172,055) (936,725) 16,332 (170,427) (297,083) (1,777) (674,818) 92,588 (16,255) 44,698 163,195 2,409,068 $ 2,221,188 $ 2,883,251 $ 4,815,057 $ $ - $ $ 2,883,251 7,897,133 163 164 AGENCY FUNDS Agency funds are used to account for assets held by the government as an agent for individuals, private organizations and other governments. Board of County Commissioners - To account for the assets held by the Board as an agent for individuals, organizations or other governments. These funds include: cash bonds, purchasing bid bonds, security deposits, and various payroll liabilities. Sheriff - To account for the assets held by the Sheriff as an agent for individuals, organizations or other governments. These funds include: cash bonds, evidence and suspense. Clerk & Comptroller - To account for the assets held by the Clerk of the Courts as an agent for individuals, organizations and other governments. These funds include: fines and forfeitures, jury and witness, tax deed, registry of court, probate, support and general agency. Tax Collector - To account for the assets held by the Tax Collector as an agent for individuals, organizations or other governments. These funds include: ad-valorem and non ad-valorem tax payments and license and registration payments. 165 PALM BEACH COUNTY, FLORIDA Combining Statement of Fiduciary Net Assets - Agency Funds September 30, 2009 AGENCY FUNDS Board of County Commissioners ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 6,770,085 461 75,014 6,845,560 $ 306,438 590,374 468 897,280 $ 28,750,166 82,850 16,426 28,849,442 $ 38,988,123 90,490 711 39,079,324 $ 74,508,374 480,239 682,525 468 75,671,606 Sheriff Clerk & Comptroller Tax Collector Total Agency Funds $ $ $ $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 3,999,164 428,706 2,063,139 354,551 6,845,560 $ 83,684 339,393 474,203 897,280 $ 8,452,981 20,396,461 28,849,442 $ 1,032,250 31,093,642 6,953,432 39,079,324 $ 5,115,098 40,314,722 29,887,235 354,551 75,671,606 $ $ $ $ $ 166 PALM BEACH COUNTY, FLORIDA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the fiscal year ended September 30, 2009 BOARD OF COUNTY COMMISSIONERS Balance 10/1/2008 ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 6,899,078 729 73,863 6,973,670 $ Additions Deductions Balance 9/30/2009 306,353,565 92 1,314,555 74,962 307,743,174 $ 306,482,558 360 1,314,555 73,811 307,871,284 $ 6,770,085 461 75,014 6,845,560 $ $ $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 3,671,231 439,437 2,462,867 400,135 6,973,670 $ 7,785,581 143,283,027 353,753 6,033,854 500,798 3,473,925 161,430,938 $ 7,457,648 143,283,027 364,484 6,033,854 900,526 3,519,509 161,559,048 $ 3,999,164 428,706 2,063,139 354,551 6,845,560 $ $ $ $ 167 PALM BEACH COUNTY, FLORIDA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the fiscal year ended September 30, 2009 SHERIFF Balance 10/1/2008 ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 379,916 461,674 349 841,939 $ Additions Deductions Balance 9/30/2009 88,048,078 8,488,895 10,765,049 86,101,586 932 193,404,540 $ 88,048,078 8,562,373 10,765,049 85,972,886 813 193,349,199 $ 306,438 590,374 468 897,280 $ $ $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 54,281 275,632 512,026 841,939 $ 115,097,002 160,085,832 2,936,274 63,564,557 341,683,665 $ 115,067,599 160,085,832 2,872,513 63,602,380 341,628,324 $ 83,684 339,393 474,203 897,280 $ $ $ $ 168 PALM BEACH COUNTY, FLORIDA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the fiscal year ended September 30, 2009 CLERK & COMPTROLLER Balance 10/1/2008 ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 24,020,447 336,447 101,737 $ 24,458,631 $ Additions Deductions Balance 9/30/2009 330,008,166 1,323,340 148,311,424 9,106 479,652,036 $ 325,278,447 1,576,937 148,311,424 94,417 475,261,225 $ 28,750,166 82,850 16,426 $ 28,849,442 $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 7,066,006 17,392,625 $ 19,213,631 215,697,855 57,680,948 292,592,434 $ 19,213,631 214,310,880 54,677,112 288,201,623 $ 8,452,981 20,396,461 - $ 24,458,631 $ $ $ 28,849,442 169 PALM BEACH COUNTY, FLORIDA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the fiscal year ended September 30, 2009 TAX COLLECTOR Balance 10/1/2008 ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 43,488,457 116,252 $ 43,604,709 $ Additions Deductions Balance 9/30/2009 2,744,745,237 2,126,102 1,937 2,746,873,276 $ 2,749,245,571 2,151,864 1,226 2,751,398,661 $ 38,988,123 90,490 711 $ 39,079,324 $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 383,866 34,380,126 8,840,717 $ 2,041,304 3,537,750,406 1,188,615,468 4,728,407,178 $ 1,392,920 3,541,036,890 1,190,502,753 4,732,932,563 $ 1,032,250 31,093,642 6,953,432 - $ 43,604,709 $ $ $ 39,079,324 (continued) 170 PALM BEACH COUNTY, FLORIDA Combining Statement of Changes in Assets and Liabilities All Agency Funds For the fiscal year ended September 30, 2009 TOTAL AGENCY FUNDS Balance 10/1/2008 ASSETS Cash and cash equivalents Accounts receivable, net Due from other county funds Due from other governments Other assets Total assets $ 74,407,982 833,344 637,274 349 $ 75,878,949 $ Additions Deductions Balance 9/30/2009 3,469,155,046 11,938,429 160,391,028 86,187,591 932 3,727,673,026 $ 3,469,054,654 12,291,534 160,391,028 86,142,340 813 3,727,880,369 $ 74,508,374 480,239 682,525 468 $ 75,671,606 $ $ LIABILITIES Vouchers payable and accrued liabilities Due to other county funds Due to other governments Due to component unit Due to individuals Other liabilities Total liabilities $ 4,109,378 42,161,201 29,208,235 400,135 $ 124,923,887 322,582,490 3,756,738,288 6,033,854 1,310,361,771 3,473,925 5,524,114,215 $ 123,918,167 322,582,490 3,758,584,767 6,033,854 1,309,682,771 3,519,509 5,524,321,558 $ 5,115,098 40,314,722 29,887,235 354,551 $ 75,878,949 $ $ $ 75,671,606 (concluded) 171 172 S tat i s t i c a l S e c t i o n The Statistical Section provides financial statement users with additional historical perspective, context, and detail to assist in using the information in the financial statements, including the accompanying notes, and required supplementary information to assess the County’s economic condition. Information is presented in the following five categories: - Financial trends information Revenue capacity information Debt capacity information Demographic & economic information Operating information - Statistical Section This part of Palm Beach County ' s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about Palm Beach County ' s overall financial health. Contents Financial Trends Information 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 Information These schedules contain information to help the reader assess the County ' s most significant local revenue source, Property taxes. Debt Capacity Information 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 economic and demographic indicators to help the reader understand the environment within which the County ' s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the County ' s financial report relates to the services the County provides and the activities it performs. Page 176 188 197 203 206 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB Statement No. 34 in 2002; schedules presenting government-wide information include information beginning in that year. 173 174 FINANCIAL TRENDS INFORMATION 175 TABLE I PALM BEACH COUNTY Net Assets by Component Last Eight Fiscal Years September 30, 2009 (accrual basis of accounting) 2009 Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Subtotal governmental activities net assets Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Subtotal business-type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets $ 1,379,604,426 791,216,501 215,300,661 2,386,121,588 2008 $ 1,259,900,977 721,136,994 404,592,872 2,385,630,843 2007 $ 1,258,858,321 691,922,069 424,170,355 2,374,950,745 1,295,978,868 102,511,960 247,786,962 1,646,277,790 1,221,939,326 81,853,521 256,633,886 1,560,426,733 1,086,676,383 96,296,100 280,151,773 1,463,124,256 2,675,583,294 893,728,461 463,087,623 $ 4,032,399,378 2,481,840,303 802,990,515 661,226,758 $ 3,946,057,576 2,345,534,704 788,218,169 704,322,128 $ 3,838,075,001 Note: Accounting standards require that net assets be reported in three components in the financial statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net assets are considered restricted when (1) an external party, such as the state or federal government, places a restriction on how the resources may be used, or (2) enabling legislation is enacted by the County. 176 2006 $ 1,149,700,254 653,306,180 440,749,051 2,243,755,485 2005 $ 1,045,215,024 719,046,886 253,276,911 2,017,538,821 $ 2004 984,688,856 587,662,798 256,909,610 1,829,261,264 $ 2003 703,748,337 544,039,097 221,261,900 1,469,049,334 $ 2002 611,054,550 499,347,555 207,072,101 1,317,474,206 948,165,708 75,198,428 293,449,654 1,316,813,790 861,609,196 73,553,352 260,387,167 1,195,549,715 762,742,002 97,185,482 252,706,877 1,112,634,361 668,501,790 91,070,934 264,202,723 1,023,775,447 576,307,538 91,128,462 284,772,975 952,208,975 2,097,865,962 728,504,608 734,198,705 $ 3,560,569,275 1,906,824,220 792,600,238 513,664,078 $ 3,213,088,536 1,747,430,858 684,848,280 509,616,487 $ 2,941,895,625 1,372,250,127 635,110,031 485,464,623 $ 2,492,824,781 1,187,362,088 590,476,017 491,845,076 $ 2,269,683,181 177 TABLE II PALM BEACH COUNTY. FLORIDA Changes in Net Assets Last Eight Fiscal Years September 30, 2009 (accrual basis of accounting) 2009 Expenses Governmental activities: General government Public safety Physical environment Transportation Economic environment Human services Culture & recreation Interest expense Total governmental activities expenses Business-type activities: Department of Airports Water Utilities Department Solid Waste Authority Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities: Fines, fees and charges for services General government Public safety Physical environment Transportation Economic environment Human services Culture & recreation Operating Grants and Contributions Capital Grants and Contributions Total governmental activities program revenue Business-type activities: Fines, fees and charges for services Department of Airports Water Utilities Department Solid Waste Authority Operating Grants and Contributions Capital Grants and Contributions Total business-type activities program revenue Total primary government program revenues 2008 2007 $ 361,226,125 745,921,020 31,362,849 159,185,218 97,971,339 102,646,882 119,372,592 57,030,394 1,674,716,419 $ 350,734,704 687,642,947 25,796,346 164,201,354 213,041,163 101,164,791 124,177,434 49,875,129 1,716,633,868 $ 353,587,607 648,701,203 28,636,570 169,132,729 160,162,014 100,967,046 119,260,294 49,027,928 1,629,475,391 78,046,101 139,641,769 182,688,229 400,376,099 2,075,092,518 71,747,321 127,812,208 160,805,739 360,365,268 2,076,999,136 66,276,956 112,853,464 158,484,143 337,614,563 1,967,089,954 114,047,649 110,334,202 10,151,537 17,193,688 3,290,607 3,698,309 14,251,315 124,370,724 18,467,156 415,805,187 129,124,303 98,503,611 4,997,300 26,379,224 3,227,522 5,897,399 12,332,208 132,135,333 40,630,120 453,227,020 132,000,732 94,764,762 5,680,770 31,801,521 3,122,003 3,140,222 15,254,861 132,204,759 18,202,648 436,172,278 75,700,643 130,226,088 226,946,893 14,595,955 39,857,577 487,327,156 903,132,343 74,338,460 118,720,944 195,947,347 18,761,250 59,477,117 467,245,118 920,472,138 77,478,538 107,090,233 195,898,364 43,762,663 57,146,874 481,376,672 917,548,950 178 2006 2005 2004 2003 2002 $ 334,221,067 594,769,838 22,758,674 146,885,943 70,953,984 92,500,262 135,554,637 46,868,063 1,444,512,468 $ 287,930,665 547,224,383 25,537,612 167,115,551 56,343,792 87,689,004 100,373,803 40,736,456 1,312,951,266 $ 277,009,468 480,227,919 23,720,500 128,520,025 50,619,793 88,722,328 94,616,074 36,729,939 1,180,166,046 $ 270,247,442 434,565,298 19,546,116 91,633,960 43,030,647 80,494,994 88,833,662 34,241,486 1,062,593,605 $ 213,736,559 388,653,721 19,910,361 87,621,176 40,223,124 74,829,578 82,338,425 36,088,899 943,401,843 65,296,423 98,664,387 211,845,828 375,806,638 1,820,319,106 66,018,396 84,650,247 193,876,262 344,544,905 1,657,496,171 58,126,033 77,154,525 151,239,222 286,519,780 1,466,685,826 57,070,803 72,006,274 135,594,046 264,671,123 1,327,264,728 54,760,966 69,054,046 130,149,594 253,964,606 1,197,366,449 157,791,914 90,472,783 8,888,175 56,056,281 2,985,295 2,884,924 20,951,076 169,338,489 18,860,932 528,229,869 145,804,439 94,327,833 8,984,143 62,242,662 2,936,974 3,136,439 24,344,306 146,143,765 29,908,643 517,829,204 122,143,504 86,737,955 6,278,825 59,161,311 2,260,256 3,613,563 27,575,440 123,265,311 23,246,229 454,282,394 113,373,676 87,545,979 6,751,335 55,763,950 394,000 3,313,414 14,161,054 100,721,579 24,043,163 406,068,150 104,616,133 84,038,588 6,123,426 56,028,175 178,892 3,027,102 12,581,231 99,039,399 16,365,287 381,998,233 73,656,481 97,504,258 176,395,212 81,160,258 86,049,256 514,765,465 1,042,995,334 70,695,132 91,355,681 161,923,748 52,030,808 51,255,084 427,260,453 945,089,657 61,474,612 91,960,731 150,871,971 23,927,296 45,811,678 374,046,288 828,328,682 55,350,172 83,683,696 140,282,109 12,503,968 44,405,912 336,225,857 742,294,007 52,373,491 81,086,893 133,125,102 21,125,266 36,463,268 324,174,020 706,172,253 179 TABLE II PALM BEACH COUNTY. FLORIDA Changes in Net Assets Last Eight Fiscal Years September 30, 2009 (accrual basis of accounting) (Continuations) 2009 Net (Expenses)/Revenue Governmental activities: Business-type activities: Total primary government net expense General Revenues and Other Changes in Net Assets Governmental activities: Taxes levied by the County Ad valorem taxes Utility service taxes Local option gas taxes Tourist development taxes State shared sales tax-unrestricted Franchise gross receipts fee State shared revenue-unrestricted Investment income Other general revenues Gain on disposal of capital assets Transfers-net Total governmental activities Business-type activities: Other general revenues Gain on disposal of capital assets Transfers-net Special items Total business-type activities Total primary government Change in Net Assets Governmental activities Business-type activities Total primary government $ 2008 2007 $ (1,258,911,232) $ (1,263,406,848) $ (1,193,303,113) 86,951,057 106,879,850 143,762,109 (1,171,960,175) (1,156,526,998) (1,049,541,004) 855,761,096 29,662,838 45,472,637 22,346,492 64,658,133 34,149,094 62,583,579 135,105,777 8,562,331 1,100,000 1,259,401,977 897,890,650 30,543,325 46,068,630 27,813,718 72,375,458 30,039,809 59,369,923 87,183,609 6,092,958 9,654,866 1,267,032,946 939,719,588 29,824,203 47,668,148 26,818,069 76,120,744 30,005,367 61,569,609 98,855,421 9,640,268 6,804,989 (2,528,033) 1,324,498,373 (1,100,000) (1,100,000) 1,258,301,977 77,493 (9,654,866) (9,577,373) 1,257,455,573 20,324 2,528,033 2,548,357 1,327,046,730 490,745 85,851,057 86,341,802 $ 3,626,098 97,302,477 100,928,575 $ 131,195,260 146,310,466 277,505,726 180 2006 2005 2004 2003 2002 $ (916,282,599) $ (795,122,062) $ (725,883,652) $ (656,525,455) $ (561,403,610) 138,958,827 82,715,548 87,526,508 71,554,734 70,209,414 (777,323,772) (712,406,514) (638,357,144) (584,970,721) (491,194,196) 800,033,319 28,882,670 49,144,912 23,528,567 80,019,101 29,707,735 61,593,434 75,370,005 5,274,520 (11,055,000) 1,142,499,263 685,200,765 28,074,005 49,196,637 22,516,374 76,660,073 25,707,598 58,434,994 33,639,043 4,169,936 (199,806) 983,399,619 606,326,239 27,196,819 48,033,683 19,848,215 73,705,133 22,856,094 54,733,943 33,858,058 1,563,777 (358,500) 887,763,461 542,171,572 28,314,364 45,946,096 17,330,095 66,973,342 22,844,936 48,113,623 31,005,054 3,696,464 1,647,381 54,656 808,097,583 499,742,790 28,094,173 43,443,989 16,621,855 65,710,225 21,516,559 46,194,731 58,374,866 4,293,167 3,035,435 787,027,790 48,047 3,416,202 11,055,000 (32,214,001) (17,694,752) 1,124,804,511 199,806 199,806 983,599,425 738,906 358,500 225,000 1,322,406 889,085,867 76,394 (54,656) 21,738 808,119,321 1,747,300 1,766,800 3,514,100 790,541,890 226,216,664 121,264,075 $ 347,480,739 188,277,557 82,915,354 $ 271,192,911 161,879,809 88,848,914 $ 250,728,723 151,572,128 71,576,472 $ 223,148,600 225,624,180 73,723,514 $ 299,347,694 (concluded) 181 TABLE III PALM BEACH COUNTY, FLORIDA Fund Balances Governmental Funds Last Ten Fiscal Years September 30, 2009 (modified accrual basis of accounting) 2009 General Fund Reserved Unreserved Total general fund $ $ 2,050,551 178,812,646 180,863,197 $ $ 2008 1,998,639 218,575,161 220,573,800 $ $ 2007 2,072,013 240,764,804 242,836,817 $ $ 2006 2,705,674 218,802,474 221,508,148 $ $ 2005 2,377,934 182,467,939 184,845,873 All Other Governmental Funds Reserved $ 42,910,572 Unreserved, reported in: Special revenue funds 269,123,104 Capital project funds 931,298,645 Total all other governmental funds $ 1,243,332,321 $ 46,696,097 $ 29,563,773 $ 35,810,097 $ 38,533,591 276,245,476 973,138,644 $ 1,296,080,217 254,283,049 883,294,634 $ 1,167,141,456 244,649,627 981,898,355 $ 1,262,358,079 216,117,295 898,318,247 $ 1,152,969,133 182 2004 $ $ 1,504,296 148,241,675 149,745,971 $ 2003 1,377,875 182,729,927 $ 184,107,802 $ 2002 1,126,397 177,405,978 $ 178,532,375 $ 2001 1,122,650 157,777,257 $ 158,899,907 $ 2000 1,149,094 132,750,125 $ 133,899,219 $ 21,298,817 183,168,481 730,838,681 935,305,979 $ 21,335,310 149,100,263 624,543,322 $ 794,978,895 $ 20,286,577 173,883,854 553,193,800 $ 747,364,231 $ 20,289,717 138,093,464 528,026,445 $ 686,409,626 $ 15,407,069 119,795,565 402,512,167 $ 537,714,801 $ 183 Table IV PALM BEACH COUNTY, FLORIDA Changes in Fund Balance Governmental Funds Last Ten Fiscal Years September 30, 2009 (modified accrual basis of accounting) 2009 Revenues Taxes (See Table V) Special assessments Licenses and permits Intergovernmental (See Table V) Charges for services Less - excess fees paid out Fines & forfeitures Investment income Miscellaneous Total revenues Expenditures General government Public safety Physical environment Transportation Economic environment Human services Culture & recreation Capital outlay Debt service Principal Interest Other charges Total expenditures Excess of revenues over (under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Issuance of long-term debt Premium (discount) long-term debt Issuance of refunding debt Premium (discount) refunding debt Payment to escrow agent for refunding Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures (1) $ 2008 2007 2006 2005 $ 981,612,885 $ 1,060,648,899 $ 1,103,524,951 $ 959,811,851 $ 839,088,219 12,800,895 30,766,826 37,199,384 93,320,734 106,468,425 45,277,203 14,495,838 18,905,841 27,124,893 23,241,939 230,405,234 231,253,335 225,178,347 274,002,360 255,413,934 268,772,594 263,170,088 258,533,429 254,197,688 250,621,639 (45,435,474) (48,986,202) (50,266,917) (40,873,561) (34,996,646) 12,050,681 13,409,495 14,905,754 7,655,171 7,368,597 127,214,081 84,558,686 97,232,629 71,586,595 31,087,205 23,927,073 25,256,701 39,679,635 35,124,869 26,262,217 1,656,625,172 1,674,573,666 1,744,893,053 1,681,950,600 1,504,555,529 301,345,410 689,356,967 29,585,239 129,347,587 99,032,530 101,393,023 103,713,504 226,570,069 75,847,513 54,810,052 2,771,849 1,813,773,743 310,329,730 653,281,284 24,897,201 136,380,373 175,019,052 99,860,522 106,653,976 245,434,936 73,892,468 48,576,404 4,845,829 1,879,171,775 313,015,263 599,870,191 26,549,400 133,592,630 155,367,439 99,109,754 103,809,416 326,185,756 88,291,399 49,666,635 665,931 1,896,123,814 290,838,621 574,135,189 21,343,348 121,777,304 70,743,624 91,612,500 123,390,031 228,383,696 62,308,629 45,439,931 3,024,010 1,632,996,883 266,333,173 514,830,158 23,607,179 133,742,817 56,103,756 87,112,369 88,698,037 253,918,590 51,899,195 37,950,596 5,187,643 1,519,383,513 (157,148,571) (204,598,109) (151,230,761) 48,953,717 (14,827,984) 874,338,459 (874,688,943) 59,844,760 804,667 51,730,000 979,778 (47,904,895) 65,103,826 790,518,983 (790,164,731) 304,926,006 5,446,308 53,751,266 797,115 (54,185,517) 311,089,430 $ 789,706,485 (790,338,523) 78,470,918 561,966 78,400,846 649,145,798 (654,200,798) 105,504,655 (48,226) 115,825,000 (121,560,729) 94,665,700 558,070,700 (550,031,074) 246,305,233 11,127,960 76,555,000 3,550,476 (78,935,818) 266,642,477 $ 251,814,493 (92,044,745) $ 106,491,321 (72,829,915) $ 143,619,417 8.2% 7.5% 8.8% 7.7% 7.1% (1) Debt service percentage = (principal & interest) / (total expenditures - capital outlay capitalized as capital assets) 184 2004 2003 2002 $ 630,295,303 88,984,709 15,196,656 188,659,369 167,772,906 17,307,566 54,270,496 33,458,090 1,195,945,095 2001 $ 569,258,844 66,502,896 17,383,730 159,672,406 124,333,193 19,706,246 77,439,464 33,077,754 1,067,374,533 2000 $ 529,327,248 60,285,588 15,429,000 156,365,044 115,167,480 13,862,893 48,543,158 23,848,360 962,828,771 $ 750,538,352 $ 678,623,758 96,267,382 92,674,006 18,423,955 15,971,817 211,072,156 191,300,405 197,993,504 156,568,583 (30,963,646) 14,451,096 16,926,636 30,482,437 26,711,503 24,668,231 23,233,113 1,312,933,467 1,202,009,821 245,309,801 455,658,451 21,418,568 101,418,238 50,441,054 87,273,324 83,478,624 193,564,051 47,422,546 34,920,376 3,825,224 1,324,730,257 233,733,569 413,014,162 18,412,689 87,911,562 42,769,728 79,186,286 77,340,894 177,374,886 43,855,556 34,037,366 759,726 1,208,396,424 207,319,138 374,776,192 19,541,885 83,668,447 40,038,880 73,151,152 72,460,441 185,824,438 43,678,253 37,025,562 1,421,888 1,138,906,276 205,350,114 341,867,103 22,295,095 33,363,353 35,314,458 68,344,041 59,683,973 204,731,400 34,953,861 31,030,021 2,030,569 1,038,963,988 185,442,968 311,564,753 8,615,444 28,073,398 34,257,258 66,234,537 48,266,501 168,881,237 33,545,000 30,764,004 138,550 915,783,650 (11,796,790) (6,386,603) 57,038,819 28,410,545 47,045,121 549,407,015 (546,159,652) 107,127,451 5,145,225 94,297,549 9,606,053 (102,397,730) 117,025,911 $ 105,229,121 $ 511,941,179 (510,386,523) 55,537,758 2,337,087 59,429,501 53,042,898 $ 491,802,641 (491,777,708) 18,659,000 18,560,000 1,021,629 (19,329,587) 18,935,975 75,974,794 448,203,647 (458,829,018) 156,305,000 (582,181) 145,097,448 $ 173,507,993 424,088,301 (435,338,391) 121,018,525 (175,622) 109,592,813 $ 156,637,934 7.3% 7.4% 8.4% 7.9% 8.6% 185 TABLE V PALM BEACH COUNTY, FLORIDA Tax and Intergovernmental Revenue by Source Last Ten Fiscal Years September 30, 2009 (modified accrual basis of accouting) (dollars in thousands) County Taxes Tourist Fiscal Ad valorem Development Local option Year Tax Tax Gas tax 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 $ 855,761 897,891 939,720 800,033 685,201 606,326 542,172 499,743 451,949 422,230 $ 22,346 27,814 26,818 23,528 22,516 19,848 17,330 16,622 18,584 18,091 $ 45,473 46,069 47,668 49,145 49,197 48,034 45,946 43,444 30,972 30,325 $ Communication services Franchise Tax (2) Fees (4) $ 26,447 28,992 29,490 28,515 28,393 26,277 22,017 20,876 $ 29,340 30,005 29,708 25,708 22,856 22,845 21,516 26,579 20,807 Local Business Tax (4) $ 1,923 Total County Taxes $ 981,613 1,060,649 1,103,525 959,812 839,089 750,538 678,624 630,295 569,259 529,327 Utility Tax (2) 29,663 30,543 29,824 28,883 28,074 27,197 28,314 28,094 41,175 37,874 Intergovernmental Revenue State shared Revenue State levied Sharing Fuel taxes $ 30,508 24,802 26,861 27,931 26,206 25,092 22,966 22,355 21,729 24,979 $ 16,017 16,388 17,405 17,499 17,688 14,130 13,242 12,866 12,372 12,127 State Other Grants $ 42,400 41,172 26,693 31,023 36,434 37,870 28,906 28,438 20,338 17,828 $ Total Intergovernmental Revenue $ 230,405 231,253 225,178 274,002 255,414 211,072 191,300 188,659 159,672 156,365 Fiscal Year 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 $ Sales Tax 64,658 72,375 76,121 80,019 76,660 73,705 66,973 65,710 62,560 60,297 Federal Grants (3) $ 68,041 69,728 71,340 112,383 94,590 56,910 56,082 56,327 39,437 39,705 Other (1) 8,781 6,788 6,758 5,147 3,836 3,365 3,131 2,963 3,236 1,429 (1) Other revenue includes: Alcoholic Beverage Licenses, Racing Tax, Insurance Agent County Licenses, Mobile Home licenses, Firefighters Supplemental Comp, and 911 Wireless Fees. Beginning in FY 01, the County received its portion of 911 fees collected by wireless providers to help with the cost of the 911 system to wireless phone customers. (2) Prior to FY02, part of the utility tax was received from telecommunications which was paid directly to the County from various companies. In FY02, this tax is remitted directly to the State and the State remits the County a portion which is now called the Communications Service Tax. (3) The increase for FY05 and FY06 is the result of FEMA Disaster reimbursements for the hurricane damage suffered in Palm Beach County. (4) Effective with FY09, franchise fees are now considered to be "Licenses, Permits and Fees" and are no longer included in this table. Additionally, occupational licenses are now considered to be "Taxes" and are included in this table under the "Local Business Tax" column. Note: Some values may differ from amounts reported in the Entity-wide Statement of Activities. That statement reports revenues using the full accrual method of accounting. 186 REVENUE CAPACITY INFORMATION 187 TABLE VI PALM BEACH COUNTY, FLORIDA Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years September 30, 2009 (in thousands of dollars) Fiscal Year Ended Sept. 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $ Residential Property 53,602,211 59,818,201 67,087,589 76,451,909 82,753,401 98,204,483 122,188,560 129,740,137 119,350,766 101,653,558 $ Commercial Property 9,676,932 10,581,999 11,269,516 12,074,143 18,962,528 21,560,566 27,284,041 28,085,753 28,820,074 26,346,784 $ Industrial Property 1,748,079 1,846,495 2,020,237 2,203,218 2,447,793 2,899,305 3,690,386 4,058,107 4,369,744 5,636,661 $ Other Property 1,606,806 1,630,521 1,758,745 1,911,407 916,026 925,849 1,022,922 1,150,067 1,133,026 1,032,506 $ Tangible Personal Property 5,312,234 5,686,654 5,889,096 5,966,663 6,091,244 6,344,019 6,718,119 6,873,275 6,558,419 6,671,510 (1) The FEC increased the assessments in the amount of $8 million and the CSX increased the assessments in the amount of $6 million for FY03. Palm Beach County Property Appraiser's Office. Florida State Law requires all property to be assessed at current fair market value. Source: Note: 188 Railroad And Telegraph $ 59,985 58,319 59,382 (1) 73,154 78,928 70,344 80,168 102,611 127,886 101,905 $ Total Assessed Value 72,006,247 79,622,189 88,084,565 98,680,494 111,249,920 130,004,566 160,984,196 170,009,950 160,359,915 141,442,924 $ Less: Tax-exempt Property 14,886,206 15,456,360 15,818,437 16,865,949 17,927,312 19,801,317 22,249,313 23,397,361 23,918,994 23,079,751 Total Taxable Assessed Value $ 57,120,041 64,165,829 72,266,128 81,814,545 93,322,608 110,203,249 138,734,883 146,612,589 136,440,921 118,363,173 Total Direct Tax Rate 4.9456 4.9362 4.9351 4.8084 4.7910 4.7677 4.7192 4.4775 3.9813 3.9656 Estimated Actual Taxable Value $ 90,319,602 101,011,371 113,847,039 129,646,611 149,674,535 180,546,215 232,872,482 236,349,114 223,427,842 189,794,833 Total Assessed Value as a Percentage of Actual Taxable Value 79.72 % 78.82 77.37 76.11 74.33 72.01 69.13 71.93 71.77 74.52 189 TABLE VII PALM BEACH COUNTY, FLORIDA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years September 30, 2009 (Per $1,000 of Assessed Value) Direct Rates Palm Beach County School Board 8.9180 8.9480 8.7790 8.5710 8.4320 8.4320 8.1060 7.8720 7.3560 7.2510 Overlapping Rates South Florida Florida Water Inland Children's Heath Management Navigation Services Care District District Council District 0.6970 0.6970 0.6970 0.6970 0.6970 0.6970 0.6970 0.6970 0.6240 0.6240 * * * * * 0.0385 0.0385 0.0385 0.0345 0.0345 * * * * * 0.6902 0.6887 0.6199 0.5823 0.6009 * * * * * 1.1000 1.0800 0.9700 0.8900 0.9975 Fiscal Year Ended Sept. 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Government 4.6000 4.6000 4.5500 4.5000 4.5000 4.5000 4.4500 4.2800 3.7811 3.7811 Debt Service Fund 0.3456 0.3362 0.3851 0.3084 0.2910 0.2677 0.2692 0.1975 0.2002 0.1845 Total Direct Rates 4.9456 4.9362 4.9351 4.8084 4.7910 4.7677 4.7192 4.4775 3.9813 3.9656 Total Overlapping Rates 9.6150 9.6450 9.4760 9.2680 9.1290 10.9577 10.6102 10.1974 9.4868 9.5079 Total Countywide 14.5606 14.5812 14.4111 14.0764 13.9200 15.7254 15.3294 14.6749 13.4681 13.4735 Note: Amounts restated for FY'05 - FY'07 to account for additional information. * Data not available 190 TABLE VIII PALM BEACH COUNTY, FLORIDA Principal Property Tax Payers Current Year and Nine Years Ago September 30, 2009 2009 Percentage Of Total Taxes Rank Levied 1 2 3 4 5 6 7 8 9 10 3.76 % 0.97 0.79 0.62 0.60 0.53 0.52 0.45 0.42 0.41 9.08 % $ 2000 Percentage Of Total Taxes Rank Levied 1 2 8 3 6 7 4 3.89 2.64 0.71 1.26 0.78 0.72 0.80 5 9 10 0.79 0.53 0.49 12.61 % % Taxpayer Florida Power & Light BellSouth Telecommunications Town Center U.S. Sugar Corporation Breakers Palm Beach Inc. Panthers BRHC LTD Landry, Lawrence L. Singer Island Condominiums LTD TJ Palm Beach Assoc LTD Ptnrs Kolter City Plaza II Inc Okeelanta Corporation Boynton JCP Assoc LTD Phillips Point Inc Total Total Tax $ 33,532,880 8,686,146 7,043,428 5,520,919 5,351,508 4,757,775 4,588,386 3,969,849 3,741,678 3,676,396 $ 80,868,965 Total Tax 17,051,505 11,567,614 3,134,467 5,542,104 3,380,470 3,197,403 3,497,853 3,452,165 2,358,686 2,136,264 55,318,531 $ Total Taxes levied: Source: Palm Beach County, Office of the Tax Collector $ 890,906,615 $ 438,378,943 191 TABLE IX PALM BEACH COUNTY, FLORIDA Property Tax Levies and Collections Last Ten Fiscal Years September 30, 2009 Gross Taxes Levied Fiscal Year for the Ended Sept. 30 Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $ 438,378,943 469,324,538 519,045,004 564,142,933 630,738,788 712,058,996 831,870,587 978,089,028 931,762,735 890,906,615 Discounts For Early Payment $15,306,210 16,233,904 18,013,056 19,651,559 22,122,810 25,117,366 30,533,941 33,329,636 31,267,722 29,693,804 Net Taxes Levied for the Fiscal Year $ 423,072,733 453,090,634 501,031,948 544,491,374 608,615,978 686,941,630 801,336,646 944,759,392 900,495,013 861,212,811 Collections of Current Year Levy Percentage Amount Net of Levy $ 420,117,483 449,946,948 498,180,743 540,858,347 605,494,833 684,361,059 799,229,729 938,520,585 896,209,694 850,038,302 99.3 % 99.3 99.4 99.3 99.5 99.6 99.7 99.3 99.5 98.7 Collections of Subsequent Year Levy $ 2,112,364 2,002,519 1,562,047 1,313,225 831,406 839,706 803,590 1,199,004 1,680,958 5,722,794 Total Collections to Date Percentage Amount Net of Levy $ 422,229,847 451,949,467 499,742,790 542,171,572 606,326,239 685,200,765 800,033,319 939,719,589 897,890,652 855,761,096 99.8 % 99.7 99.7 99.6 99.6 99.7 99.8 99.5 99.7 99.4 Source: Palm Beach County Tax Collector's Office 192 193 TABLE X Non-Ad Valorem Revenue Last Ten Fiscal Years September 30, 2009 Fiscal Year Ended Sept. 30 Charges for Other Services Half-Cent Sales Tax Interest Electric Franchise Tax Utility Service Tax (3) Communications Service Tax (3) State Revenue Sharing Excess Fees - Sheriff (4) Reimburse of Indirect Costs Miscellaneous Parks & Recreation Fees Licenses & Permits Available Tourist Development Tax County Officer's Fees Animal Regulation Fees Fines and Forfeitures Excess Fees - Supervisor of Elections (1) (4) Excess Fees - Clerk & Comptroller (4) Parking Revenue Cable TV Franchise Tax (2) Excess Fees - Property Appraiser (4) Excess Fees - Tax Collector (4) TOTALS (1) (2) 2009 $ 71,249,011 64,658,134 57,833,423 29,913,714 29,662,838 26,446,677 22,072,684 17,192,263 14,277,742 13,425,688 12,559,968 5,607,187 4,469,298 3,218,454 3,107,008 2,337,136 855,558 492,167 353,503 $ 379,732,453 2008 (6) $ 49,967,579 72,375,457 34,257,321 25,042,044 30,543,325 28,992,767 24,757,350 7,697,452 13,357,131 23,109,714 12,311,308 5,965,537 5,562,744 2,750,190 2,802,393 1,979,045 1,481,382 503,679 213,747 $ 343,670,165 2007 (5) $ 47,855,195 76,120,744 38,635,994 25,495,545 29,824,203 29,489,576 26,814,892 10,290,391 12,222,067 34,917,301 10,555,850 6,205,700 5,672,139 2,233,823 2,299,257 2,206,725 651,827 2,785,224 270,741 $ 364,547,194 2006 $ 37,429,716 80,019,101 28,689,237 25,022,599 28,882,669 28,514,647 27,881,333 3,048,686 11,583,034 45,918,261 11,033,646 6,189,425 5,882,141 2,404,971 2,467,856 2,611,542 11,295,945 254,324 $ 359,129,133 In 2007, the Supervisor of Elections became a separate fiscal entity. The local Cable TV Franchise Fee was replaced with a new statewide Telecommunications Service Tax in FY02 and is now collected by the State. Prior to FY02, part of the utility tax was received from telecommunications which was paid directly to the County from various companies. Beginning with FY02, this tax is remitted directly to the State and the State remits the County a portion which is now called the Communications Service Tax. Excess fees represent unspent appropriations of the constitutional officers which are required by Florida Statute to be returned to the County at the end of the fiscal year. The excess fees are recorded as 'transfer-in' by the County and 'transfers-out' by the constitutional officers in the fund statements. Beginning in fiscal years ended 9/30/03, excess fees for the Tax Collector and Property Appraiser (in compliance with GASB 34) are reported as 'reimbursements of expenses' by the County and as a 'reduction of fee revenue' by the Tax Collector and Property Appraiser in the fund statements. Because these 'excess fees' represent a refund of unspent 'charges for services' rather than unspent appropriations, they are no longer used in the computation of the debt coverage ratio. 2007 data was revised for new data and increased by $2,981,657. 2008 data was revised for new data with no increase in the total amount. (3) (4) (5) (6) Source: Palm Beach County, Office of Financial Management and Budget Note: Non-Ad Valorem Revenues are available revenues of the County other than ad valorem taxation on real and personal property, which are legally available for payment of debt service by the County. See Table XV Debt Coverage. 194 2005 $ 31,166,150 76,660,073 12,433,189 20,836,584 28,074,005 28,392,841 26,153,737 8,762,824 11,820,470 27,320,733 9,882,421 6,720,920 5,629,094 2,188,985 2,662,967 1,930,511 15,255,452 260,879 $ 316,151,835 2004 $ 30,867,264 73,705,133 12,338,681 17,905,261 27,196,819 26,277,301 25,040,944 8,015,401 9,823,540 16,706,987 9,474,905 6,377,608 4,962,054 4,220,421 2,510,009 8,027,054 10,879,034 296,471 $ 294,624,887 2003 $ 29,437,466 66,973,342 11,170,042 17,824,293 28,314,364 22,016,697 22,917,694 16,216,318 9,315,887 13,699,517 9,477,537 3,874,911 4,332,524 5,771,908 2,541,806 8,093,869 7,472,330 362,934 $ 279,813,439 2002 $ 28,273,977 65,710,226 21,357,264 16,468,768 28,094,173 20,875,937 22,283,583 23,719,248 8,725,494 9,453,712 8,578,510 4,114,205 3,037,109 5,758,018 2,252,860 7,987,441 7,196,616 377,930 20,670 1,669,863 18,237,099 $ 304,192,703 2001 $ 24,538,155 62,560,483 30,858,008 17,141,089 40,891,114 21,728,736 14,754,706 8,343,573 13,365,627 8,578,105 3,885,201 2,242,294 5,263,402 1,987,077 7,932,981 2,989,138 405,201 4,277,975 1,516,192 16,927,338 $ 290,186,395 2000 $ 21,973,663 60,297,169 18,878,233 13,379,692 37,874,444 24,978,575 13,890,313 8,871,682 10,787,160 6,654,167 3,794,672 2,243,015 4,944,643 2,176,232 6,459,624 3,260,654 509,783 3,249,347 2,081,075 16,220,935 $ 262,525,078 195 DEBT CAPACITY INFORMATION 196 TABLE XI PALM BEACH COUNTY, FLORIDA Ratios of Outstanding Debt by Type Last Ten Fiscal Years September 30, 2009 (dollars in thousands, except per capita) Fiscal Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Governmental Activities Non-Ad General Valorem Obligation Revenue Loans Bonds Bonds Payable $ 205,855 267,485 253,845 292,745 275,905 283,885 336,020 313,515 290,410 270,150 $ 354,700 417,090 400,980 379,275 448,170 634,471 597,660 573,910 882,004 924,052 $ 49,192 44,852 66,882 58,893 71,419 73,248 94,871 129,057 75,494 41,327 Business-Type Activites Total Primary Government $ 1,242,872 1,337,621 1,322,996 1,332,119 1,348,006 1,537,129 1,673,993 1,607,988 1,868,448 2,259,475 Percentage of Personal Income (1) 2.54 2.63 2.53 2.51 2.26 2.38 2.38 2.16 N/A N/A Capital Leases $ 394 726 338 155 25 34 43 11 7 3 Revenue Bonds $ 627,750 592,415 593,185 592,020 551,285 506,425 637,745 591,245 540,533 947,943 Loans Payable $ 4,981 15,053 7,766 9,031 1,202 39,066 7,654 250 80,000 76,000 Capital Leases $ Per Capita (1) $ 1,099 1,159 1,118 1,100 1,085 1,214 1,300 1,242 1,443 1,755 Note: Details regarding the County's outstanding debt can be found in the notes to the financial statements. Information regarding personal income was not available for FY08 & FY09 (1) See Table XVI for personal income and population data. 197 TABLE XII PALM BEACH COUNTY, FLORIDA Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years September 30, 2009 (dollars in thousands, except per capita) Fiscal General Total Taxable Year Obligation Assessed Ended Bonds Value of Sept. 30 Outstanding (1) Property (2) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $ 205,855 267,485 253,845 292,745 275,905 283,885 336,020 313,515 290,410 270,150 $ 57,120,041 64,165,829 72,266,128 81,814,545 93,322,608 110,203,249 138,734,883 146,612,589 136,440,921 118,363,173 G.O. Bonds Outstanding as a Percentage of Total Taxable Assessed Value of Property 0.36% 0.42% 0.35% 0.36% 0.30% 0.26% 0.24% 0.21% 0.21% 0.23% G.O. Bonds County Outstanding Population (3) Per Capita 1,131,184 1,154,464 1,183,197 1,211,448 1,242,270 1,265,900 1,287,987 1,295,033 1,294,654 1,287,344 $ 181.98 231.70 214.54 241.65 222.10 224.26 260.89 242.09 224.31 209.85 Note: (1) See Table XI for General Obligation (G.O.) Bonds and Other Debt (2) See Table VI for Taxable Assessed Value (3) See Table XVI for County Population 198 TABLE XIII PALM BEACH COUNTY, FLORIDA Direct and Overlapping Governmental Activities Debt September 30, 2009 (dollars in thousands) Debt Payable from Ad Valorem Taxes Estimated Percentage Estimated Applicable Share of Debt based on Property Overlapping Outstanding Assessed Value Debt Overlapping debt School District South Florida Water Management District Municipalities Subtotal, overlapping debt Direct debt Total direct and overlapping debt $ 32,835 149,096 100% 100% 73% $ 32,835 108,840 141,675 270,150 $ 411,825 Debt Payable from Non-Ad Valorem Revenues Estimated Percentage Applicable based on Population Estimated Share of Direct & Overlapping Debt Debt Outstanding Estimated Share of Overlapping Debt $ 1,868,448 569,780 323,374 2,761,602 100% 100% 55% $ 1,868,448 569,780 177,856 2,616,084 965,379 $ 3,581,463 $ 1,901,283 569,780 286,696 2,757,759 1,235,529 $ 3,993,288 $ 181,931 $ Note: The following 100% overlapping governments did not have debt outstanding at fiscal year end; Florida Inland Navigation District, Children's Services Council, and the Health Care District. 199 TABLE XIV PALM BEACH COUNTY, FLORIDA Legal Debt Margin Information September 30, 2009 The constitution of the State of Florida, Florida Statute 200.181, and Palm Beach County set no legal debt limit. 200 TABLE XV PALM BEACH COUNTY, FLORIDA Pledged-Revenue Coverage Last Ten Fiscal Years September 30, 2009 (dollars in thousands) Fiscal Year Ended Sept. 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Note: (3) Non-Ad Valorem Revenue Bonds (1) Non-Ad Debt Service Valorem Principal Interest Revenues Coverage $ 19,565 21,225 24,230 26,781 28,002 31,827 43,361 53,993 48,201 55,496 $ 21,369 20,610 23,110 21,705 20,878 24,231 32,302 32,521 32,977 40,740 $ 262,525 290,186 304,193 279,813 294,625 316,152 359,129 364,547 343,670 379,732 6.41 6.94 6.43 5.77 6.03 5.64 4.75 4.21 4.23 3.95 Water Utilities Revenue Bonds (2) Gross Revenues $ 81,725 88,755 89,382 87,663 92,660 94,155 99,324 114,019 121,929 140,118 Debt Service Net Revenue Available Principal Interest $ 43,092 47,585 45,940 40,080 40,762 37,495 33,800 40,238 40,002 50,877 $ 7,735 8,025 8,445 8,885 9,610 12,317 10,745 13,255 13,955 14,568 $ 5,090 3,658 4,058 2,652 1,877 1,450 2,898 3,809 8,376 8,377 Expenses $ 38,633 41,170 43,442 47,583 51,898 56,660 65,524 73,781 81,927 89,241 Total $ 12,825 11,683 12,503 11,537 11,487 13,767 13,643 17,064 22,331 22,945 Coverage 3.36 4.07 3.67 3.47 3.55 2.72 2.48 2.36 1.79 2.22 Details regarding the County's outstanding debt can be found in the financial statements. (1) The County covenants that it will not issue any indebtedness or incur any indebtedness payable from or supported by a pledge of non-ad valorem revenues unless the total amount of non-ad valorem revenues will be greater than 2.00 times the debt service required in the current or any future fiscal year. For purposes of such test, principal retired through refunding is excluded and the interest rate on bonds bearing interest at a variable rate must be prospectively calculated in future years at the higher rate of (a) 12% per annum or (b) the average yield to par call for the Bond Buyer Municipal Bond Index (the "Bond Buyer 40") on the date of calculation rather than the actual rate as shown in the schedule. For the year ended September 30, 2008, if the County had used the maximum annual debt service for variable rate debt, the times coverage would be 3.90. (2) The calculation of gross revenues excludes connection fees and extraordinary gains and the calculation of expenses excludes interest expense, depreciation and extraordinary losses. (3) Non-ad valorem revenues for FY07 have been restated for interest and other revenues recognized in FY08 but not included in the prior year. 201 DEMOGRAPHIC AND ECONOMIC INFORMATION 202 TABLE XVI PALM BEACH COUNTY, FLORIDA Demographic and Economic Statistics Last Ten Fiscal Years September 30, 2009 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Population 1,131,184 1,154,464 1,183,197 1,211,448 1,242,270 1,265,900 1,287,987 1,295,033 1,294,654 1,287,344 Source: Personal Income $ 48,954,794 50,843,978 52,287,552 52,980,627 59,762,055 64,474,396 70,399,975 74,548,299 N/A N/A Per Capita Personal Income $43,116 43,964 44,195 43,974 48,422 51,374 55,812 59,147 N/A N/A Civilian Labor Force 524,708 541,377 553,833 590,677 598,785 622,443 645,211 650,548 655,669 626,400 Unemployment Rates 4.1 % 5.9 6.4 6.2 5.7 4.1 3.7 4.8 7.3 11.7 Florida Legislature, Office of Economic and Demographic Research State of Florida Agency for Workforce Innovation Florida Department of Labor and Employment Security and Bureau of Labor Market Unemployment Information Labor Statistics Department Note : Population and income data are per calendar year. Income data for 2008 and 2009 is not available. Personal Income data for 2005 and 2006 is revised. Per Capita Income data for 2000 thru 2007 is revised. Labor Force and Unemployment data are for September of each year. 203 TABLE XVII PALM BEACH COUNTY, FLORIDA Principal Employers Current Year and Nine Years Ago 2009 Percentage of Total County Employment 3.47% 1.82% 1.48% 1.01% 0.82% 0.66% 0.58% 0.48% 0.44% 0.37% 11.13% 2000 Percentage of Total County Employment 3.20% 1.72% 1.64% 0.99% 0.00% 0.76% 0.44% 0.00% 0.00% 0.00% 0.44% 0.61% 0.44% 0.35% 10.59% Employees Palm Beach County School Board Palm Beach County Government State Government Federal Government Tenet Healthcare Corp (2) Hospital Corporation of America (HCA) (1) Florida Power & Light Company (FPL) Wackenhut Corporation Florida Atlantic University Bethesda Memorial Hospital Florida Crystals Intracoastal Health Systems, Inc. (2) Motorola Inc. Boca Raton Resort & Club Total 21,718 11,381 9,300 6,300 5,127 4,150 3,658 3,000 2,776 2,300 69,710 Rank 1 2 3 4 5 6 7 8 9 10 Employees 16,800 9,000 8,600 5,200 4,000 2,300 Rank 1 2 3 4 5 T-7 2,300 3,200 2,300 1,850 55,550 T-7 6 T-7 10 Source: Business Development Board of Palm Beach County Notes: (1) Formerly Columbia Palm Beach Health Care System, Inc (2) Intracoastal Health Systems, Inc - now part of Tenet Healthcare Corp. 204 OPERATING INFORMATION 205 TABLE XVIII PALM BEACH COUNTY County Government Employees by Function/Program Last Ten Fiscal Years Employees as of September 30, Function/Program General government Facilities Development & Operations Planning, Zoning & Building Clerk & Comptroller Property Appraiser Tax Collector Supervisor of Elections Other Public safety Fire-Rescue Sheriff Other Physical environment Environmental Resources Management County Cooperative Extension Service Transportation Palm Tran Engineering & Public Works Economic environment Housing & Community Development Other Human services Community services Other Culture & recreation Parks & Recreation County Libraries Internal service funds Information System Services Graphics (1) Fleet Management Risk Management Enterprise funds Airports Water Utilities Solid Waste Authority Total 2009* 2008 2007 2006 2005 2004 2003 2002 2001 2000 358 333 729 280 269 45 454 1,473 3,848 349 130 36 555 337 53 57 471 15 657 452 211 70 36 161 505 439 386 400 821 280 269 45 470 1,471 3,812 372 136 39 570 344 53 60 469 15 699 481 225 9 72 37 159 518 439 392 401 803 280 280 45 489 1,418 3,615 368 140 39 570 352 49 60 475 16 720 416 231 9 69 37 150 499 432 370 393 750 276 284 41 475 1,298 3,502 342 132 39 561 346 44 61 478 15 698 394 229 10 69 37 151 440 422 357 389 713 272 284 39 477 1,239 3,322 335 127 40 545 343 44 62 468 14 634 384 223 9 68 36 151 433 413 346 389 731 268 288 39 499 1,172 3,210 275 123 38 539 338 42 60 468 14 619 377 211 9 68 36 148 427 413 349 390 748 261 288 36 499 1,114 3,115 265 116 38 527 328 42 50 468 14 595 369 180 9 65 36 143 423 413 350 380 733 257 288 35 499 1,044 3,026 255 112 37 512 318 39 51 453 13 554 361 176 9 64 36 138 416 413 350 368 734 247 288 32 499 1,004 2,928 249 106 39 496 314 41 47 426 12 526 354 173 9 64 36 137 416 414 350 338 727 244 258 32 498 952 2,845 242 102 40 445 309 40 45 443 11 501 332 176 10 64 36 136 411 413 12,323 12,651 12,355 11,857 11,421 11,147 10,881 10,569 10,309 10,000 * Fiscal Years 2000 - 2008 reflect Full-time Equivalents, Fiscal Year 2009 reflects number of positions (1) Effective beginning with FY 2009, Graphics is now included in the General Fund under "General government - Other" Source: Office of Financial Management and Budget 206 TABLE XIX PALM BEACH COUNTY Operating Indicators by Function/Program Ten Fiscal Years Fiscal Year Function/Program General government Planning, Zoning & Building Code enforcement violations Construction plans reviewed Permits issued Public safety Fire-Rescue Response time Fire responses Medical responses Inspections Physical environment Environmental Resource Management Tonnage of artificial reef materials Trees and plants planted or arranged Cubic yards beach sand (thousands) Transportation Palm Tran Passengers (millions) Engineering & Public Works Land development permits issued Lane miles of roads maintained Lane miles resurfaced Linear feet of roadway striped (millions) Permits issued for construction of: right-of-ways, drainage and utilities Economic environment Housing & Community Development Single-family new construction Human services Children receiving health services Children with disabilities Meals - Head Start (thousands) Culture & recreation Parks & Recreation Golf rounds played (thousands) Program and facility attendance (millions) County Library Circulation (millions) Cardholders (thousands) Internal service funds Information System Services %CSRs on time - Applications Graphics % timely delivery Risk Management # of employees enrolled in Health ins # of employees enrolled in Dental ins Enterprise funds Water Utilities Average water dwelling units served (thousands) Average wastewater treated per day (millions of gallons) Airports Total passengers (millions) Operating expense per passenger (prior years restated) Operating revenue per passenger (prior years restated) 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 3,369 3,507 25,332 37,702 42,944 53,964 4,464 65,691 70,751 4,571 59,288 62,304 2,195 31,300 30,600 5,073 42,213 78,379 5,073 42,213 78,379 6,013 41,859 49,486 N/A 44,583 53,037 4,458 36,522 43,817 6:36 N/A 16,831 20,714 87,099 82,199 27,044 25,475 6:27 23,536 76,517 22,281 6:23 22,295 74,706 20,079 6:27 24,835 72,691 18,630 6:31 23,065 67,094 16,936 6:31 24,352 64,729 15,632 6:39 23,319 61,056 14,195 6:39 22,274 56,910 11,913 6:42 20,929 54,677 11,354 1,650 3,150 321,000 60,000 1,150 1,050 4,900 41,100 1,087 23,484 35,900 54,500 105,300 1,016 1,000 23,300 20,800 1,301 3,000 24,400 1,301 15,270 82,434 1,301 16,500 19,000 758 11,200 20,700 161 9.8 11 3,295 53 1.8 616 10.1 15 3,299 45 1.1 495 9.3 12 3,431 35 0.8 569 8.3 26 3,299 50 1.4 554 7.5 30 3,291 86 1.7 622 7.1 50 3,193 62 1.5 655 6.3 30 3,171 77 1.2 645 5.8 49 2,960 91 2.2 642 6.2 34 2,960 64 1.2 594 5.4 73 2,960 69 1.2 634 25 2,323 295 517 60 2,158 292 461 2 2,126 223 488 0 2,068 232 460 29 1,958 228 756 8 2,199 281 682 8 1,849 193 915 12 1,772 177 425 12 1,969 152 672 28 2,070 176 397 178 169 N/A 6.6 499 142 N/A 5.8 486 145 8.1 6.0 477 152 8.0 6.0 469 154 7.6 5.7 459 148 7.8 5.7 451 N/A 7.8 5.3 445 129 7.5 5.1 439 151 6.8 5.1 457 7.5 517 83% 99% 5,388 3,295 82% 99% 5,297 3,298 93% 98% 4,191 3,122 92% 99% 4,250 3,125 86% 99% 3,900 3,100 85% 99% 3,800 2,893 84% 99% 3,524 2,893 84% 99% N/A N/A 81% 100% N/A N/A 76% 96% N/A N/A 221 34.1 6.6 $6.74 $9.72 219 33.4 7.0 $5.84 $9.43 207 35.7 6.8 $5.84 $9.44 197 36.1 7.0 $5.41 $8.73 186 33.2 6.4 $5.59 $8.23 181 32.4 5.9 $5.81 $8.08 181 31.9 5.4 $5.98 $8.26 174 30.7 6.1 $4.82 $7.95 164 30.5 5.8 $4.60 $8.62 164 30.5 5.7 $4.72 $8.88 N/A = Not available Sources: Office of Financial Management and Budget Department of Airports Note: 2009 data is not yet available. 207 TABLE XX PALM BEACH COUNTY Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program Public safety Fire Rescue Fire Stations Transportation Palm Tran Buses Engineering & Public Works County Roads (mileage) Traffic Lights Culture & recreation Parks & Recreation Developed acres Enterprise funds Water Utilities * Water mains (miles) Storage and repump stations Fire hydrants Sewers (miles) Pump stations 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 47 45 44 43 40 40 40 39 35 34 161 1,288 1,289 154 1,285 1,150 176 1,297 1,160 160 1,294 1,120 140 1,295 1,095 140 1,295 1,104 139 1,361 1,045 139 1,361 1,045 139 1,361 1,021 128 1,361 997 5,074 5,067 5,134 4,817 4,195 3,798 3,786 3,714 3,579 3,484 2,126 2,162 2,081 2,064 1,880 1,784 1,666 1,515 1,423 1,412 17 17 18 10 11 11 12 3 3 3 16,066 15,866 15,630 14,834 13,396 12,517 12,013 11,760 10,981 10,857 1,145 1,142 1,132 1,103 953 963 955 868 824 817 767 764 762 750 692 674 650 635 623 612 * Note: In FY2006, the Water Utilities Department revised certain data for prior years. Source: Office of Financial Management and Budget 208 SHARON R. BOCK Clerk & Comptroller Palm Beach County www.mypalmbeachclerk.com