SFWMD CAFR FY End 09/30/14 COMPREHENSIVE ANNUAL FINANCIAL REPORT
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SOUTH FLORIDA WATER MANAGEMENT DISTRICT
A Component Unit of the State of Florida
Fiscal Year Ended September 30, 2014
Prepared by
Finance Bureau, Administrative Services Division
Christian Flier!, Bureau Chief
. .
This Page has been Intentionally Left Blank
I _ 1 SOUTH FLORIDA WATER MANAGEMENT DISTRICT
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May 26, 2015
Subject: South Florida Water Management District Comprehensive Annual
Financial Report
Enclosed please find The South Florida Water Management District Comprehensive
Annual Financial Report (CAFR) for Fiscal Year End September 30, 2014. In order to
continue our efforts to save printing and mailing costs of this report, we are providing
our annual CAFR on the enclosed CD. The document is also available online at:
http://www.sfwmd.gov/portal/page/portal/xrepository/sfwmd repository pdf/201
4 sfwmd cafr.pdf
If you should have any questions, or concerns please feel free to contact Chris Flierl at
(561) 682-6078 or via email cflierina sfwmd.gov.
Sincerely,
.457,:(,5Q
Chris Flierl -
Bureau Chief— Finance
Enclosure
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•
3301 Gun Club Road,West Palm Beach,Florida 33406 • (561)686-8800 • FL WATS 1-800-432-2045
Mailing Address: P.O.Box 24680,West Palm Beach,FL 33416-4680 • wwwsfwmd.gov
S O U T H F L O R I D A WATER M A N A G E M E N T D I S T R I C T
1 4110,1111F
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
The South Florida Water Management District Fiscal Year Ended
is a Component Unit of the State of Florida September 30,2014
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Individuals hiking along the levees in
STA-3/4 are certain to see numerous
species of south Florida wildlife. As
spring progresses, the flock of wading
birds becomes dense as adults are
foraging for their developing chicks.
Bird species typically observed in the
STA include the mottled duck
(pictured). The Florida mottled duck
(Anas fulvigula fulvigula), is a unique
species found only in the marches in
the peninsular Florida, The Florida
mottled duck spends its entire life
within the state and has inhabited
Florida for thousands of years,
showing the importance of the
management and protection of the
Florida water resources.
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
INTRODUCTORY SECTION
LETTER OF TRANSMITTAL I-1
ORGANIZATION CHART AND LIST OF PRINCIPAL OFFICIALS 1-9
GFOA CERTIFICATE OF ACHIEVEMENT 1-10
MAP OF THE GEOGRAPHIC BOUNDARIES OF THE DISTRICT I-11
FINANCIAL SECTION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS II-1
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) (UNAUDITED) 11-3
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position Ill-1
Statement of Activities 111-2
FUND FINANCIAL STATEMENTS
Governmental Funds Financial Statements
Balance Sheet 111-3
Reconciliation of the Governmental Funds Balance Sheet to the Statement of
Net Position 111-5
Statement of Revenues, Expenditures and Changes in Fund Balances 111-6
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 111-8
Proprietary Funds Financial Statements
Statement of Position 111-9
Statement of Revenues, Expenses, and Changes in Fund Net Position III-10
Statement of Cash Flows III-11
NOTES TO THE BASIC FINANCIAL STATEMENTS 111-13
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A(UNAUDITED)
BUDGET TO ACTUAL COMPARISON—MAJOR FUNDS(General and Special Revenue)
General Fund IV-1
Okeechobee Basin SR IV-3
Everglades Restoration Trust SR IV-5
SCHEDULE OF EMPLOYER CONTRIBUTIONS IV-6
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION IV-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
FINANCIAL SECTION(Continued)
OTHER SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds
Descriptions of the Nonmajor Governmental Funds V-1
Combining Balance Sheet V-5
Combining Statement of Revenues, Expenditures and Changes in Fund Balances...V-11
Budget to Actual Comparison-Other Major and Nonmajor Governmental Funds
Special Revenue Funds
Big Cypress Basin V-18
Save Our Rivers V-19
State Appropriations V-20
Invasive Aquatic Plant Control V-21
Upland Invasive Plant Control V-22
Wetland Mitigation V-23
Indian River Lagoon Restoration V-24
Federal Land Management V-25
External Grants V-26
Lake Belt Mitigation V-27
Everglades License Plate V-28
Lake Okeechobee Trust Fund V-29
Save Our Everglades V-30
Federal Emergency Management Agency V-31
Florida Bay V-32
Capital Projects Funds
District V-33
Okeechobee Basin V-34
Big Cypress Basin V-35
Save Our Rivers V-36
Everglades Trust Fund V-37
Federal Emergency Management Agency V-38
Florida Bay V-39
Wetland Mitigation V-40
Comprehensive Everglades Restoration Plan (CERP) V-41
Federal Land Acquisition V-42
Save Our Everglades V-43
Comprehensive Everglades Restoration Plan—Other Creditable Fund V-44
COPS—Everglades Forever Act V-45
COPS—Comprehensive Everglades Restoration Plan V-46
Lake Belt Mitigation V-47
Lake Okeechobee V-48
ii
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
FINANCIAL SECTION(Continued)
OTHER SUPPLEMENTARY INFORMATION (Continued)
Budget to Actual Comparison-Other Major and Nonmajor Governmental Funds(Continued)
Permanent Fund
Wetland Mitigation V-49
Internal Service Funds
Descriptions of the Internal Service Funds V-51
Combining Statement of Net Position V-52
Combining Statement of Revenues, Expenses and Changes in Fund Net Position V-53
Combining Statement of Cash Flows V-54
STATISTICAL SECTION (UNAUDITED)
Net Position by Category VI-2
Changes in Net Position VI-3
Fund Balances, Governmental Funds VI-5
Changes in Fund Balances, Governmental Funds VI-6
Revenues by Source VI-8
Property Tax Revenue by County VI-9
Direct Property Tax Rates VI-11
Property Tax Collections VI-12
Taxable Property Values and Just Values of Taxable Property by County VI-13
Taxable Value of Property VI-14
Assessed Value Per Capita VI-15
Principal Property Tax Payers VI-16
Ratios of Outstanding Debt by Type VI-17
Pledged-Revenue Bond Coverage VI-18
Demographic and Economic Statistics VI-19
District Population by County VI-20
Employment Data VI-21
Ten Largest Employers within District Boundaries VI-22
Authorized Positions per 100,000 Population VI-23
District Employees by Resource Area and Major Program VI-24
District Employees by Major Program VI-25
Permit Applications Received VI-26
Water Moved by District Pump Stations VI-27
Exotic Plant Control VI-28
Prescribed Burns VI-29
Stormwater Treatment VI-30
Capital Assets by Major Program VI-31
iii
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
DISCLOSURE SECTION (UNAUDITED)
SEC RULE 15c2-12 DISCLOSURES
District Agreement and Effective Dates VII-1
Annual Financial Information VII-2
Security for the Bonds VII-2
Documentary Stamp Tax VII-2
Funding and Allocation of the Trust Fund VII-3
Use of the Trust Fund VII-4
Escrow and Reserve Funds VII-4
Security for the Certificates of Participation VII-5
Annual Debt Service Requirements VII-6
Audited Annual Financial Statements VII-6
Required Notices VII-7
iv
INTRODUCTORY SECTION
4JJ ��'1.Y
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aS€R ^', SOUTH FLORIDA WATER MANAGEMENT DISTRICT
TO: Governing Board Members and Blake Guillory, Executive Director
SUBJECT: Comprehensive Annual Financial Report— Fiscal Year 2014
Florida Statutes require an external audit of the financial statements be performed by a firm of
independent certified public accountants to express an opinion that the basic financial statements
of the South Florida Water Management District (District) are fairly presented in conformance with
accounting principles generally accepted in the United States (GAAP). Pursuant to this
requirement, the comprehensive annual financial report for the District is hereby issued for the
fiscal year ended September 30, 2014.
Responsibility for the integrity, objectivity, accuracy, completeness and fairness of presentation of
these basic financial statements rests with management. The basic financial statements were
prepared in conformity with generally accepted accounting principles for governmental entities.
Management believes the information to be accurate in all material respects and fairly presents the
District's financial position and operating results. The report includes disclosures required to
provide an understanding of the District's financial affairs.
Management is responsible for maintaining an internal control structure designed to ensure that
District assets are protected from loss, theft, or misuse. The concept of reasonable assurance
recognizes that the cost of a control should not exceed the expected benefits, and the evaluation of
costs and benefits requires management's estimates. The Governing Board and management
have a plan of organization and policies in place to safeguard assets, validate the reliability of
accounting data, promote operational efficiency, and encourage adherence to prescribed
managerial policies and procedures. District management believes these existing internal
accounting controls adequately safeguard assets and provide reasonable, but not absolute,
assurance of proper recording and reporting of District finances.
Independent auditors have audited the basic financial statements in accordance with generally
accepted auditing standards and included a review of internal accounting controls to the extent
necessary to express an opinion on the fairness of these basic financial statements. The
independent auditors concluded, based upon the audit, that there was a reasonable basis for
rendering an unmodified opinion that the South Florida Water Management District's basic financial
statements for the fiscal year ended September 30, 2014 are fairly presented, in all material
respects, in accordance with GAAP. The independent auditors' report is presented as the first
component of the financial section (Section II) of this report.
The independent audit of the District's basic financial statements was part of a broader federal and
state mandated "Single Audit" designed to meet the special needs of federal and state grantor
agencies. The standards governing Single Audit engagements require the independent auditors to
report not only on the fair presentation of the basic financial statements, but also on the District's
internal controls and compliance with legal requirements, with special emphasis on internal
controls and legal requirements involving the administration of major federal awards and major
state financial assistance. These reports are available in the District's separately issued Single
Audit Report.
33I l Gun Club Road,West Palm Beach,Florida 334116 • (56l)686-8900 • FI.WAT.S 1-8O0-432-2043
Mailing Address:P.O.Box 24680,West Palm Beach,FL 33416-4680 • wwwsfwmd.gnv
I-1
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Generally accepted accounting principles require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to
complement MD&A and should be read in conjunction with it. The District's MD&A can be found
immediately following the report of the independent auditors.
DISTRICT BACKGROUND
South Florida's subtropical extremes of hurricane, flood, and drought combined with efforts to
populate this "new frontier" led the U.S. Congress to adopt legislation creating the Central and
Southern Florida Flood Control Project in 1948.
The project's primary goal was to serve the needs of the region's growing agricultural and urban
populations and to protect and manage water resources. The United States Army Corps of
Engineers would, over the following decades, design and build a vast network of levees, canals,
water control structures, and other improved waterways designed to help manage the often
unpredictable weather extremes of the region.
In 1949 the Florida Legislature created the Central and Southern Florida Flood Control District
(FCD) to act as the local sponsor for the project, operating and maintaining the water control
network with funding from property taxes levied within the District boundaries. Throughout its
history, this regional water resource agency evolved and grew primarily in response to population
growth and development and their impact on water resources.
The Florida Water Resources Act of 1972 launched the most significant change in the state's
approach to natural resource management. This legislation divided the state into five regional
water management districts and greatly expanded the responsibilities of the existing FCD. This
included a greater emphasis on water quality and environmental protection initiatives.
The FCD was renamed the South Florida Water Management District (the "District") in 1976, and
new boundaries were drawn to encompass the region's primary watersheds. Since 1949, the
District has grown into a multi-faceted agency responsible for most water resource related issues—
from providing flood protection and water supply protection to people living in cities and on farms to
restoring and managing natural ecosystems.
The District's Governing Board is composed of nine members appointed from specific geographic
areas within District boundaries. The members are appointed by the Governor and are confirmed
by the Florida Senate. Appointments are made on a staggered basis and members serve without
salary for a term of four years. The Board elects its own officers, including a chairman and vice-
chairman.
GEOGRAPHIC BOUNDARIES OF THE DISTRICT
Water management district boundaries are based on natural, hydrological basins rather than
political or county limits to allow for effective and efficient planning and management. The
boundaries of the District encompass all or part of 16 south Florida counties, covering a total area
of 17,930 square miles. Approximately 8.0 million people live within the District's boundaries. A
map showing the geographic boundaries of the District can be found on page I-11.
1-2
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
GENERAL OPERATIONS
The District's water management system includes roughly 4,101 miles of maintained canals and
levees along with 678 water control structures and weirs and 627 smaller project culverts operated
by the District. The District has approximately 70 pumping stations which can move hundreds of
millions of gallons of water in and out of storage areas, providing both water supply and flood
protection. The man-made water management system undergoes continuous enlargement and
refinement with new construction, acquisitions, and upgrades to the existing network. This
enhances the system's ability to provide flood control and water supply protection as well as
preserve water quality and environmental values.
District employees are located at facilities across the 16 county jurisdiction to offer the public more
direct and responsive access to permitting and other agency functions. These locations include
eight Field Stations located in St. Cloud, Okeechobee, Clewiston, West Palm Beach, Fort
Lauderdale, Miami, Homestead, and Naples. District headquarters are in West Palm Beach with
Service Centers located in Fort Myers, Naples, Orlando and Okeechobee.
The Big Cypress Basin Branch Office and Field Station are headquartered in Naples. Operations
and policies for the Basin are directed by a six-member Basin Board and are carried out by Basin
staff, under the direction of the Basin Administrator.
REGULATORY POWERS
The District has a number of regulatory programs designed to protect the region's water resources.
Under the State's 1993 environmental streamlining initiative, land alteration activities or works
affecting water resources are regulated under one type of permit — the Environmental Resource
Permit. The water management districts and the Florida Department of Environmental Protection
have developed uniform wetland delineation, mitigation banking, and environmental resource
permitting criteria. The District is also responsible for regulating consumptive uses of water. Types
of activities regulated by the District include:
• projects with impacts on wetlands or other surface waters (dredge and fill),
• use of District lands, canals, streams or aquifers,
• drainage system construction or operation, and
• well construction.
OTHER DISTRICT PROGRAMS
The District's responsibilities reach far beyond regulatory programs and operations. The District
acquires, manages, and restores lands for the conservation and preservation of water resources
as well as for the ancillary benefit of public recreation.
Water resource education targeted at schools and at the general public is an important District
focus. Partnerships and coordination with other levels of government and other agencies help
support water resource development projects, development of alternative water supplies, water
conservation, reuse, and stormwater management goals.
1-3
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Research, data collection, and analysis help ensure District projects and programs are effective
and efficient. Emergency operations and management are a cornerstone of District operations,
especially during the hurricane season, or the seven-month dry season when serious water
shortages can occur. The District is also a leader in melaleuca, aquatic weed, and other exotic
pest plant control.
REGIONAL ECONOMIC CONDITION AND OUTLOOK
Conditions in the local economy affect the District's ability to generate revenues. This is because
the District's primary revenue is from ad valorem taxes, which are property taxes based on
assessed values of property in the region. Population growth and the associated construction of
housing and commercial structures along with unemployment and interest rates are the primary
factors that contribute to changes in property prices, which result in adjustments to assessed
values.
Population growth within the District's geographic boundaries has remained constraint during the
recent fiscal year, with a 1.2 percent increase, compared to the prior year's increase of 1.0 percent.
The District's population is expected to steadily increase by 6.7 percent from 2014 through 2019,
with the largest numerical increases through 2019 occurring in Lee, Miami-Dade, and Palm Beach
Counties and the highest percentage growth rates occurring in Lee, Osceola, and St. Lucie
Counties, according to data published by the Florida Office of Economic and Demographic
Research.
Florida, along with the nation, continues to manage the slow economic conditions. The October
2014 unemployment rate for Florida was 6.2 percent compared to 7.4 percent (adjusted) from a
year ago; and 5.7 percent for the entire United States compared to 7.2 (adjusted) percent from a
year ago. This decrease in state and national unemployment rates suggests stabilization in the
economic downturn of recent years, and the reduced unemployment rate, coupled with other
economic indicators such as a moderate resurgence in the housing market and leveling off of
foreclosure rates should translate into property values remaining steady in 2015 and even
experiencing a slight increase over values of recent past.
The District's adopted ad valorem millage rates decreased for fiscal year 2014, to a District-wide
rate of .1685 for fiscal year 2014 compared to .1757 mills for the prior fiscal year. This decrease in
millage rate is a reflection of Governing Board policy to levy rolled-back millage rate which
represents no tax increase. In 2011 Senate Bill (SB) 2142 set a maximum amount of revenue that
can be raised each fiscal year by the five water management districts. Senate Bill 1986
subsequently superseded SB 2142, authorizing the Florida Legislature to set the maximum millage
rate for each water management district, and providing legislative review and oversight for district
budgets. In addition, the District's ad valorem revenue growth is limited by the Property Tax
Reduction and Reform bill passed by the Florida Legislature in June 2007, which required a
reduction in taxes by all local governments and special taxing districts from three to nine percent,
depending on their past per capita tax increases. This legislation also limited future year revenues
by setting more stringent Governing Board voting requirements to increase agency millage rates.
The District's 2014 budget reflected a 0.6 percent reduction in ad valorem property taxes levied,
which equates to a decrease of$1.6 million from the prior fiscal year.
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SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MAJOR INITIATIVES
EVERGLADES RESTORATION
Florida's Everglades are the largest subtropical wetlands in the United States and are a unique
resource. The Everglades "River of Grass" contains a diversity of plants and wildlife not found
anywhere else in the United States. For more than a century, human activities have altered the
ecosystem to provide for the development of a growing population, agriculture, and protection
against deadly hurricanes and droughts.
Today, the Everglades face critical challenges as a result of more than 100 years of human
progress. Phosphorus-enriched agricultural and stormwater runoff has threatened the ecosystem's
delicate balance. Other threats include changes in the quantity, distribution, and timing of
freshwater; an infestation of non-native plants and animals; mercury accumulation in the tissue of
some Everglades fish, birds, and other animals; and a reduction in the size of the Everglades
marshes.
The Everglades Forever Act (EFA), passed by the Florida Legislature in 1994, directed the
District to acquire land, design, permit, and construct a series of Stormwater Treatment Areas
(STAs) to reduce phosphorus levels from stormwater runoff and other sources before it enters the
Everglades Protection Area. The District implemented the Everglades Construction Project and
the Everglades Restoration Program in order to meet the requirements of the Everglades Forever
Act. In 2003, the Everglades Forever Act was amended, requiring the implementation of the Long-
Term Plan for Achieving Water Quality Goals in the Everglades Protection Area (Long-Term Plan).
The Everglades Construction Project (ECP) was the first major step in Everglades restoration
pursuant to the 1994 Everglades Forever Act. The STAs, which consist of six large constructed
wetlands, totaling over 57,000 acres of effective treatment area, are the cornerstone of the ECP.
Other ECP components include hydropattern improvements and diversion of stormwater flows from
Lake Okeechobee. Operations and maintenance of the STAs and other features of the ECP have
commenced upon completion of each individual project. The latest data indicates that over the
past fifteen years, phosphorus control programs consisting of Stormwater Treatment Areas and
best farming/management practices together have prevented over 4,582 metric tons of phosphorus
from entering the Everglades.
The Long-Term Plan, which builds upon and expands the ECP, contains activities to achieve
Everglades water quality goals and to permit the State of Florida and the District to fulfill their
obligations under both the Everglades Forever Act and the Federal Everglades Settlement
Agreement. The success of the Long-term Plan is predicated upon using an adaptive
implementation approach, whereby the best available information is used to develop and
implement incremental improvement measures as their need and utility is confirmed.
The Comprehensive Everglades Restoration Plan (CERP) is a 30-year plan which provides the
framework for the restoration, protection, and preservation of the naturally occurring water
resources of the central and southern Florida region which originate in the Everglades. As the
plan's major local sponsor, the South Florida Water Management District has partnered with the
United States Army Corps of Engineers to implement CERP, the goal of which is to increase water
storage and improve the timing, quality, and distribution of water deliveries to the Everglades
ecosystem. Principal features of the plan are the creation of new reservoirs and wetlands-based
water treatment areas.
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SOUTH FLORIDA WATER MANAGEMENT DISTRICT
The United States Congress approved CERP in 2000, under the Water Resources Development
Act, authorizing ten initial full-scale projects along with six pilot projects. Implementation is currently
estimated to cost $13.5 billion (at 2009 price levels, including subsequently authorized CERP
revisions), according to the 2010 Report to Congress, half of which will be paid by the federal
government. Through 2010, the State of Florida and the District have invested approximately $2.4
billion towards this effort.
During 2005, the District launched an expedited initiative to be financed by Certificates of
Participation to revitalize the ecosystem by increasing the pace on eight restoration projects
included in the CERP and Everglades plans. Through fiscal year 2014, proceeds from the
certificates totaling $578.4 million have been utilized to reimburse project construction costs.
LAKE OKEECHOBEE
The Lake Okeechobee Project is a multi-year, multi-component project which is designed to
improve Lake Okeechobee and its estuaries by reducing excess nutrient loading, managing water
levels, and reducing or eliminating exotic plant species. In 2000, the Florida State Legislature
passed the Lake Okeechobee Protection Bill, which required the District, in partnership with the
Florida Department of Agriculture and Consumer Services and the Florida Department of
Environmental Protection, to restore the lake and its watershed. In 2007, the project was further
extended under the Northern Everglades and Estuaries Protection legislation. This legislation,
which expanded the existing Lake Okeechobee Protection Bill to include the Caloosahatchee and
St. Lucie Rivers and estuaries, addressed both water quality and water storage needs. Total
expenditures for the Lake Okeechobee Project for fiscal year 2014 totaled $14.3 million.
FINANCIAL POLICIES
LONG RANGE FINANCIAL PLANNING AND FINANCIAL POLICIES
In accordance with Senate Bill 1986 and budgetary guidance from the Florida Department of
Environmental Protection and our Governing Board, the District has thoroughly evaluated its fiscal
commitments in order to fulfill Executive and Legislative direction. The District has reduced taxes
and directed its fiscal resources towards its core mission of flood control, water supply, water
quality and natural systems. The District has established a five-year spend-down plan to dedicate
accumulated reserves and cash balances toward further improvements in water storage and water
quality in the northern and southern Everglades, Lake Okeechobee and the St. Lucie and
Caloosahatchee watersheds, while ensuring sufficient reserves remain available to address
hurricane or unanticipated flood control infrastructure emergencies. In addition, a long-range
strategic plan is prepared which provides the District and the public it serves with a guide for
successfully meeting the District's priorities for the next five years. The plan is used during the
development of the annual operating budget and to achieve the long term goals of the District.
PRINCIPLES OF SOUND FINANCIAL MANAGEMENT
Management acknowledges its responsibility for sound administration of the District's financial
resources. This responsibility begins with Principles of Sound Financial Management. These are
sixteen guiding principles established by the Governing Board that reflect core business beliefs of
the District. One of the principles states that the District will maintain accountability and prudently
1-6
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
use financial resources. As an integral part of the goal of fiscal accountability, management
currently provides useful, timely, and accurate financial information for reporting, analysis, and
decision making. The objective of this report is to clearly communicate the agency's operating
results and financial position.
BUDGET ADOPTION AND CONTROLS
The Truth-in-Millage (TRIM) Act enacted by state legislation requires disclosures of information
regarding tax millage and budget adoption. Each year, following the required disclosures and two
statutorily required public hearings, the Governing Board sets millage rates and adopts a budget.
The District's level of budgetary control, defined as the lowest level at which management may not
reallocate resources without approval of the Governing Board, is at the program level within a fund
and resource area. The Board also approves budget transfers among departments and capital
projects during the year. Chapter 373.536, Florida Statutes, provides additional guidance and
criteria regarding the District's budget development, adoption and approval process. Encumbrance
accounting is used to reserve budgeted appropriations of commitments for unperformed contracts
for goods and services.
DEBT ADMINISTRATION
The majority of the District's debt is comprised of the unpaid balance of revenue bonds referred to
as Certificates of Participation (COPS), Series 2006, and to a lesser extent, the unpaid balance of
Special Obligation Land Acquisition Bonds. The certificates were issued to provide funds for the
construction of projects in furtherance of Everglades restoration. Acquisition bonds were issued to
finance the purchase of environmentally sensitive lands and are secured by a share of statewide
documentary stamp tax collections. At September 30, 2014, the District's COPS were rated Aa3,
AA and AA- by Moody's, S&P and Fitch Ratings, respectively and the District's Land Acquisition
Bonds, Series 2002 and 2003 were rated A3, A+ and A by Moody's, S&P and Fitch Ratings,
respectively. The total liability for the revenue bonds and the land acquisition bonds at September
30, 2014 is $478.6 million and $13.1 million, respectively. The District is obligated for payments on
the COPS through fiscal year 2037, and on the bonds through fiscal year 2016.
Legislation passed by the Florida Legislature in 2009 limits the District's annual debt service for
revenue bonds to an amount not to exceed 20.0 percent of annual ad valorem tax revenues of the
District, unless otherwise approved by the Joint Legislative Budget Commission. Bonds issued
and outstanding before January 1, 2009, are exempt from this statute and are not included in the
calculation of this limitation.
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
their Certificate of Achievement for Excellence in Financial Reporting to the South Florida Water
Management District for its comprehensive annual financial report for the fiscal year ended
September 30, 2013. This was the twenty-fourth consecutive year the District has 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,
satisfying both generally accepted accounting principles and applicable legal requirements.
1-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
A Certificate of Achievement is valid for a period of one year only. Management believes that the
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.
ACKNOWLEDGMENTS
Management extends its sincere appreciation to the many District employees who provide their
dedicated efforts to complete the research and analysis necessary for the preparation of this
report. Special thanks go to the employees of the Finance Bureau for their diligence in the
production of this report.
Respectfully submitted,
14/4 /
Doug Bergstrom Christian Flierl, Chief
Director of Administrative Services Finance Bureau, Administrative Services
March 31, 2015
1-8
ORGANIZATION CHART AND LIST OF PRINCIPAL OFFICERS
ELECTORATE
GOVERNOR
I
GOVERNING BOARD
Inspector General Daniel O'Keefe,Chair Kevin Powers,Vice Chair
J.Timothy Beirnes Rick Barber Sand Batchelor BIG CYPRESS BASIN
Y BOARD
Mitch Hutchcraft James J.Moran Rick Barber,Chair
Melanie Peterson Juan M.Portuondo Alice J.Carlson,Vice-Chair
Glenn J.Waldman David Farmer
Ralph Haskins
Marielle M.Kitchener
Executive Director John Vaughn
Blake Guillory /
General Counsel Executive Office Chief of Staff
Staff
I
Business&Land Board&Executive
Services Administrative
Litigation Ombuds Services
Regulatory& Intergovernmental I
Everglades Program
Government&
Community Affairs
Agricultural Policy Procurement
Administrative Information
Services Technology
J
Finance
Budget
Process&Project
I Control
Human Resources
Operations, Field Operations& Everglades Policy General Services
Regulation Engineering& Land Management Water Resources &Coordination l
Construction
I
Regulatory Emergency Everglades Policy
Support Management Field pp y &Coordination
Hydrology Water Supply
Regulations Operations Applied Sciences State Policy&
Everglades Infrastructure Coordination
g Management Land Resources Water quality
Regulations Federal Policy&
Water Use Engineering& Coordination
Construction
J
I-9
GD
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
South Florida
Water Management District
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2013
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Executive Director/CEO
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The South Florida Water Management District(SFWMD) encompasses all or part* of 16
counties:
Broward Glades Martin Osceola*
Charlotte* Hendry Monroe Palm Beach
Collier Highlands* Okeechobee* Polk*
Miami-Dade Lee Orange* St. Lucie
I-11
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This Page has been Intentionally Left Blank
1-12
FINANCIAL SECTION
McGladrey LLP
McGladrey
Independent Auditor's Report
To the Governing Board of the
South Florida Water Management District
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the South Florida Water Management District (the
"District"), a component unit of the State of Florida, as of and for the year ended September 30, 2014, and
the related notes to the financial statements, which collectively comprise the District's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the District, as of September 30, 2014, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
II-1
Member of the RSM International network of Independent accounting,sax and consulting firms.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, other post-employment benefit plan schedules of employer contributions and
funding progress, and the budgetary comparison schedules — General Fund, the Okeechobee Basin
Special Revenue Fund and the Everglades Restoration Special Revenue Fund be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The introductory section, combining and individual fund
financial statements, the budgetary comparison schedules, the statistical and disclosure sections, are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the budgetary comparison
schedules are the responsibility of management and were derived from and relates directly to the
underlying accounting and other records used to prepare the basis financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or
to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and the budgetary comparison schedules are fairly stated in
all material respects in relation to the basic financial statements taken as a whole.
The introductory section and the statistical and disclosure sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued, under separate cover, our
report dated March 31, 2015 on our consideration of the District'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 in considering the District's internal control
over financial reporting and compliance.
West Palm Beach, Florida
March 31, 2015
11-2
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Management's discussion and analysis of the South Florida Water Management District's financial
performance provides an overview of the District's financial activities for the fiscal year ended
September 30, 2014. Please read it in conjunction with the transmittal letter beginning on page I-1
and the District's basic financial statements, which begin on page III-1.
FINANCIAL HIGHLIGHTS
• District assets exceeded liabilities at fiscal year-end 2014 by approximately $4.71 billion.
• Net position increased approximately $102.9 million, or approximately 2.23 percent during the
year, remaining relatively stable at $4.71 billion at September 30, 2014.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $6.0
million, or about 5.81 percent of total General Fund expenditures.
• The District's total capital assets increased by $103.9 million during the current fiscal year.
This increase is the net of $105.0 million in additions resulting from construction of various
projects, and $1.1 million in retirements.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the District's basic financial
statements. The District's basic financial statements are comprised of three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also includes other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad overview
of the District's finances in a manner similar to a private-sector business. There are two basic
government-wide financial statements: the statement of net position and the statement of activities.
Both basic government-wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting.
The statement of net position presents information on all of the District's assets and deferred
outflows of resources, and liabilities and deferred inflows of resources, with the difference between
the two reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the District is improving or deteriorating.
The statement of activities presents information showing how the government's net position
changed during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of the related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave). The government-wide financial statements can be found on pages III-1 to 111-2 of this report.
11-3
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
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 District, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The District maintains governmental funds and proprietary funds.
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental funds balance sheet and the governmental funds
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The District maintains 35 individual governmental funds. Information is presented separately in the
governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the General Fund, Okeechobee Basin Special
Revenue Fund, Everglades Restoration Trust Special Revenue Fund, Okeechobee Basin Capital
Projects Fund, Everglades Trust Capital Projects Fund, Save Our Everglades Capital Projects
Fund, and COPS Everglades Forever Capital Projects Fund, all of which are considered to be
major funds. Data from the other 28 governmental funds are combined into a single, aggregated
presentation. The basic governmental fund financial statements can be found on pages III-3 to III-
8 of this report.
Individual fund data for each of the 28 non-major governmental funds is provided in the form of
combining statements on pages V-5 to V-16 of this report.
Proprietary funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements, which are in a manner similar to a private-
sector business. Similar to the government-wide financial statements, proprietary fund financial
statements focus on both short-term and long-term financial information. Proprietary fund financial
statements consist of a statement of net position, a statement of revenues, expenses, and changes
in fund net position and a statement of cash flows. These statements are prepared using the
economic resources measurement focus and the accrual basis of accounting. Proprietary funds
can be categorized as enterprise funds or internal service funds. Enterprise funds account for
goods and services provided to those outside the District, generally on a user-charge basis.
Internal service funds report activities that provide supplies and services for the District's other
programs and activities.
11-4
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Currently, the District maintains no enterprise funds. However, the District maintains two individual
internal service funds. Information is presented combined in the statement of net position, the
statement of revenues, expenses, and changes in fund net position and the statement of cash
flows for the Self-Insurance Fund and the Health Benefits Fund. Because these services
predominantly benefit governmental rather than business-type functions, they have been included
within governmental activities in the government-wide financial statements. The basic proprietary
fund financial statements can be found on pages III-9 to III-11 of this report.
Individual fund data for each of the two proprietary funds is provided in the form of combining
statements on pages V-53 to V-55 of this report.
The District adopts an annual appropriated budget for all of its funds. Budgetary comparison
schedules have been provided that include the original and final appropriated budgets as well as
the final actual results of operations for the General Fund, Okeechobee Basin Special Revenue
Fund, and Everglades Restoration Trust Special Revenue Fund to demonstrate compliance with
these budgets. The budgetary comparison schedules for these three funds are being reported as
required supplementary information other than management's discussion and analysis and are
presented immediately after the notes on pages IV-1 to IV-5. Budgetary comparison schedules for
the other governmental funds are presented on pages V-18 to V-48 of this report.
Notes to the basic financial statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the basic financial
statements can be found on pages III-13 to III-44 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the District, net position is $4.71 billion at the close of the most recent fiscal
year, an increase of $102.9 million from the prior fiscal year. By far, the largest portion of the
District's net position (90.9 percent) reflects its investment in capital assets (e.g., land, buildings,
equipment) less any related outstanding debt used to acquire those assets. The District uses
these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the District's investment in its capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities. An
additional portion of the District's net position (8.1 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance (1.0 percent) of net position
relates to the unrestricted portion. At the end of the current fiscal year, the District is able to report
positive balances in all three categories of net position.
The balance of current and other assets at the end of fiscal year 2014 decreased from the prior
year balance, reflecting a net decrease of $7.9 million. A number of variances contributed to the
net decrease, the most significant of which is a lower balance in cash and investments, which
decreased $37.6 million. This decrease in cash and investments is primarily a result of the
11-5
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
combination of a $6.8 million reduction in liabilities and expenditures incurred for the acquisition
and construction of capital assets. As noted, total liability obligations saw a decrease of $6.8
million primarily due to the pay-down of outstanding debt ($15.7 million) offset by an increase in
accounts payable balance of $11.4 million. Together, the changes in current assets and total
liabilities between fiscal years represents the significant portion of the change in restricted and
unrestricted net position, which shows a net decrease of $8.0 million. The increase of $110.9
million in net investment in capital assets is primarily a result of capital assets, net of depreciation
increasing by $103.9 million from FY13 to FY14, and the outstanding debt associated with capital
assets being reduced by $17.2 million during the same period. Additional information relative to
capital asset and long term debt activity during FY14 can be found on pages 11-15 to 11-16 of this
report.
Key elements of the total net position increase are presented below.
District's Net Position
As of September 30
2014 2013
Current and Other Assets $ 568,165,087 $ 576,084,770
Capital Assets, Net 4,747,093,454 4,643,195,945
Total Assets 5,315,258,541 5,219,280,715
Current and Other Liabilities 54,597,908 42,038,809
Long-term Liabilities 551,128,744 569,785,646
Deferred Inflows of Resources - 784,477
Total Liabilities & Deferred 605,726,652 612,608,932
Net Position:
Net Investment in Capital Assets 4,278,898,454 4,167,995,965
Restricted 385,052,895 380,196,140
Unrestricted 45,580,540 58,479,678
Total Net Position $4,709,531,889 $4,606,671,783
11-6
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
District's Changes in Net Position
Fiscal Years Ended September 30
2014 2013
Revenues
Program Revenues
Charges for Services $ 37,677,609 $ 34,146,056
Operating Grants and Contributions 41,020,689 24,198,843
Capital Grants and Contributions 65,112,460 53,064,079
General Revenues
Property Taxes 280,667,290 280,080,376
Investment Earnings 6,058,186 385,038
Other 2,087,127 1,092,105
Total Revenues 432,623,361 392,966,497
Expenses
Land Stewardship $ 13,762,682 $ 11,221,915
Mission Support 45,166,915 46,556,301
Modeling and Scientific Support 11,572,865 10,775,376
Operations and Maintenance 114,290,603 135,936,264
Regulation 19,194,734 22,769,011
Restoration 85,037,648 146,728,178
Water Supply 17,464,823 14,127,405
Interest on Long-Term Debt 23,272,985 26,521,567
Total Expenses 329,763,255 414,636,017
Increase (Decrease) in Net Position 102,860,106 (21,669,520)
Net Position at Beginning of Year 4,606,671,783 4,628,341,303
Net Position at End of Year $ 4,709,531,889 $ 4,606,671,783
11-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Property taxes continue as the District's primary source of revenue. For fiscal year 2014, revenue
from property taxes totaled $280.6 million of which $11.4 million represents Agricultural Privilege
Taxes. This reflects a slight increase of$0.6 million, or 0.2 percent, from fiscal year 2013.
The Agricultural Privilege Tax is one of the dedicated funding sources identified in the Everglades
Forever Act (EFA) and is used to fund Everglades Construction Project and Long Term Plan
expenditures. Agricultural Privilege Tax revenues vary each year based on tax roll information
received from Palm Beach and Hendry counties' property appraisers. The tax is calculated based
on the assessed tax-per-acre and the number of agricultural acres reflected on the tax rolls. The
Governing Board certifies the tax rolls at the District's Annual Tentative Budget Adoption Public
Hearing held each September. The Agricultural Privilege Tax continues to be a steady source of
revenue for the Everglades Trust Fund. During fiscal year 2014 tax revenues derived from the
Agricultural Privilege Tax remained consistent with the prior fiscal year's level of $11.6 million.
Annual revenue realized is directly related to a change in acres in the Everglades Agricultural Area
and C-139 basin from the previous year's tax rolls. Acres can be taken off the tax rolls due to
construction and change in land status to non-agricultural use tax classification.
Charges for services totaled $37.7 million for fiscal year 2014, an increase of $3.5 million. This
increase is primarily due to $2.3 million received for mitigation fees related to the Loxahatchee
Mitigation Bank in Palm Beach County. There were no comparable revenues received by the
District in fiscal year 2013.
Operating grants and contributions totaled $41.0 million for fiscal year 2014, an increase of
approximately $16.8 million from the prior fiscal year. The majority of this variance relates to
revenue received from the Save Our Everglades Trust Fund for Restoration Strategies and L-8
Reservoir Infrastructure Projects in the amount of $3.6 million and $8.1 million respectively. In
addition, the District deferred $5.3 million of revenues that are expected to be received from The
State for reimbursement of expenditures related to Hurricanes Charley and Isaac.
Capital grants and contributions totaled $65.1 million for fiscal year 2014, an increase of
approximately $12.0 million from fiscal year 2013. During fiscal year 2014, the District received
$26.1 million from Florida Department of Environmental Protection for the purchase of
approximately 1.9 thousand acres of land related to the Loxahatchee River Watershed Restoration
Project. In addition, the District received additional funding in fiscal year 2014 for Restoration
Strategies Projects totaling $15.0 million. Offsetting this increase was a $28.7 million decrease in
revenue recognized during fiscal year 2014 related to the contribution of capital assets.
Investment earnings during fiscal year 2014 increased by approximately $5.7 million to $6.1
million from the previous fiscal year 2013 level of $0.4 million. This increase is primarily attributed
to market value losses recognized on the District's pooled investments, particularly U.S. Treasury
bonds that realized significant market losses during 2013. At the end of fiscal year 2014 the
District's net market gain on investments amounted to $0.1 million, compared to a net market loss
of $4.1 million at the end of fiscal year 2013. Additionally, interest earnings increased by $1.2
million, from $4.5 million to $5.7 million between fiscal years 2013 and 2014, due to increased
yields on investments and as a result of a marginally reduced cash and investment portfolio
balance.
11-8
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Other Revenue totaled $2.1 million for fiscal year 2014, and consists primarily of miscellaneous
revenue not otherwise designated. The slight increase from revenue of $1.1 million in prior fiscal
year 2013 was primarily due to a $1.1 million release of municipal construction insurance program
premiums related to certain construction projects.
Program Expenses related to the Mission Support, Operations and Maintenance, and Restoration
Programs totaled approximately $244.5 million or 74.1 percent of the $329.8 million in total
expenses for fiscal year 2014. These three largest District programs and the most significant
reasons for variances from prior fiscal year 2013 program expenses are discussed below.
Mission Support Program expenses decreased $1.4 million, or 3.0 percent, from $46.6 million in
fiscal year 2013 to $45.2 million in fiscal year 2014. The most significant variances contributing to
the net decrease resulted from a $1.1 million reduction in salaries and fringes charged against the
program and reduction $.07 million in Self Insurance Charges. These decreases were offset by a
$0.7 million increase in property tax collector and appraiser fees charged to the program.
This program delivers critical business support services such as information technology,
procurement, finance, human resources, legal support, project management, internal audit, and
public and executive level policy guidance. The strategic priority goal of the program is to provide
the District with optimum support and logistical functions.
Operations and Maintenance (O&M) Program expenses incurred during fiscal year 2014 was
$114.3 million, a decrease of $21.6 million, or 15.9 percent from the $135.9 million expensed in
fiscal year 2013. A number of variances within the Program contributed to the net decrease in
expenses; the most significant of which are $14.4 million related to various types of maintenance
and repairs contracts, $2.4 million in inventory usage for chemicals, fuel, and parts, and $3.9
million less spent in fiscal year 2014 compared to the prior year relative to interagency agreements
with local, state and federal governments. Other decreases in expenditures were realized in
salaries and fringes charged against the program of$0.9 million.
This program is primarily responsible for the operation and maintenance and flood control within 16
counties of South Florida. Currently, region-wide water management is accomplished by the
District's multi-purpose system, which currently includes 678 water control structures and weirs;
627 smaller project culverts; management of 70 pump stations, which send water south and
through waterways eastward and westward to both coasts; and oversight of approximately 4,101
miles of canals and levees. The strategic priority goal of the Operations and Maintenance Program
is to refurbish, replace, improve and manage the regional water management system by
implementing flood control system refurbishment projects as part of the 50-year plan; incorporating
new works into water management system operations; operating the water management system to
meet flood control and water supply needs; optimizing infrastructure maintenance by adhering to,
or exceeding, industry standards and best practices; and coordinating with the U.S. Army Corps of
Engineers on levee inspections and improvements
Projects completed or significantly under way included ongoing construction on the S-5A
Hardening/Bridge Repair, Hillsboro Canal Bank Stabilization, North Shore Trash Rakes, C-4 Canal
Bank Improvements, G-94 Refurbishment, S-13 Repowering and Automation and Diesel Oxidation
Catalyst Project. Completion of the C-41A Canal Bank Repairs Phase III, East Coast Protective
11-9
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Levee Rehabilitation Phase 1, 2 and 3. Other tasks include ongoing exotic plant control, mowing,
vehicle inspection, pumping operations and maintenance programs.
Restoration Program expenses for fiscal year 2014 decreased by $61.7 million or 42.0 percent
from the prior year to $85.0 million. Restoration Program expenses saw a net decrease of $69.6
million in capital assets. The majority of this decrease was the result of the write-off of capital
assets related to the Everglades Agricultural Area Reservoir Project, with $76.6 million being
written-off in fiscal year 2013 and no comparable amounts in fiscal year 2014. In addition, the
Program had a net reduction in operating expenses of approximately $2.0 million related to
inventory usage for chemicals, fuel, and parts; property assessments; indirect central service
charges; and utility services, coupled with a $0.1 million decrease in salaries and fringe
benefits. These decreases were offset by a $10.0 million increase in contractual services for fiscal
year 2014 related to the Dispersed Water Management Projects and Restoration Strategies
Projects.
This program oversees restoration projects for the agencies Coastal Watersheds, Comprehensive
Everglades Restoration Plan, District Everglades, Kissimmee Watershed, and Lake Okeechobee
programs. The program activities include project development through implementation; providing
computer modeling, water quality monitoring, and assessment for all aspects of water
management; and fulfilling the District's responsibilities outlined in the Everglades Forever Act and
the Federal Settlement Agreement as well as implementation of the Comprehensive Everglades
Restoration Plan. In June 2012, the State of Florida and the U.S. Environmental Protection Agency
reached consensus on new restoration strategies for further improving water quality in America's
Everglades. Under these strategies, the District is implementing a regional water quality plan to
complete six water treatment and storage projects, implementation of additional source controls
and a science plan that will ensure continued research and monitoring to improve and optimize the
performance of the STAs.
During fiscal year 2014, there were 104 active projects within the Restoration Program which
incurred costs. Some major program accomplishments include the start of construction on the
Indian River Lagoon C-44 STA, continued design on the Indian River Lagoon C-44 pump station
and the Lake Hicpochee shallow storage and hydrologic enhancement project, and within
Restoration Strategies continued construction of the A-1 Flow Equalization Basin (FEB) project, the
L-8 FEB and L-8 Divide and the S-5A Divide Structure Modifications; continuation of the design
phase of the STA-1 West Expansion and G-716 Structure Expansion.
FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. The focus of the District's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the District's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year.
11-10
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
General Fund
The General Fund is the chief operating fund of the District. It accounts for all financial resources,
except those accounted for in another fund. This fund accounts for District-wide expenditures and
is supported primarily by ad valorem property taxes, permit fees and investment earnings.
At fiscal year end, the fund balance of the General Fund was $63.4 million, of which $48.5 million
was either assigned or unassigned and $14.9 million was committed to various District projects.
As a measure of the General Fund's liquidity, it may be useful to compare both assigned and
unassigned fund balance and total fund balance to total fund expenditures. Assigned/unassigned
fund balance represents 46.8 percent of the General Fund expenditures totaling $103.6 million,
while total fund balance represents 61.2 percent of that same amount. Revenues exceeded
expenditures by $14.5 million and the General Fund had net operational transfers to other funds
amounting to $14.2 million, resulting in a slight increase in fund balance of$0.3 million.
Total revenues in the General Fund increased approximately $1.9 million from the prior year. The
majority of this increase relates to investment earnings, which saw a $1.2 million increase between
fiscal years, primarily due to a significant net market gain on investments.
Total expenditures decreased approximately $10.8 million, or 9.4 percent, in fiscal year 2014 to
$103.6 million. During fiscal year 2013 an amount of $7.0 million was expended in the General
Fund to recognize funding provided to the Health Benefits Internal Service Fund in support of
subsidizing retiree health premiums and no corresponding expenditure was recognized in the
current year.
Operating transfers out of the fund totaled $39.6 million in other financing uses for fiscal year 2014.
Of significance, transfers-out in the amount of $38.6 million went to the District Capital Projects
Fund, representing the General Fund's 2014 annual contribution to fund planned capital projects
and debt service on the Certificates of Participation, with additional transfers-out of $1.1 million to
the Save Our Everglades Capital Projects Fund to cover costs which were deemed ineligible for
funding from the Save Our Everglades Trust Fund. Operating transfers into the General Fund
totaled $25.4 million, which included $22.9 million from the Comprehensive Everglades Restoration
Plan Capital Projects Fund in an effort to close out that fund and $2.5 million from the District
Capital Projects Fund and Comprehensive Everglades Restoration Plan Other Creditable Fund to
fund related non-capital expenditures.
Okeechobee Basin Special Revenue Fund
The Okeechobee Basin Special Revenue Fund is restricted for revenues and expenditures within
all or part of a 15-county area designated as the Okeechobee Basin. Revenue is provided by ad
valorem property taxes, intergovernmental funding, permit fees, investment earnings and other
sources.
The total fund balance of the Okeechobee Basin Special Revenue Fund at September 30, 2014
was $107.5 million, a decrease of $0.6 million from fiscal year 2013. Revenues in excess of
expenditures of$25.1 million were offset by a $28.6 million decrease related to net transfers out of
the fund. Total revenues recorded in the Okeechobee Basin Special Revenue Fund were stable,
H-11
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
increasing slightly to $120.6 million from prior year's total of $118.5 million. The slight increase is
attributable to a $1.5 million increase in investment earnings. Total expenditures decreased by
$16.2 million, or 14.9 percent in fiscal year 2014 to $92.6 million. The majority of the decrease
relates to the completion of the East Coast Protective Levee Rehabilitation Phase 1, 2 and 3 in
fiscal year 2013, which accounted for $14.1 million of the variance. The remaining decrease is
related to various offsetting items, including a $3.8 million payment in fiscal year 2013 to FEMA for
de-obligated costs related to Hurricane Charlie, additional contract service costs in fiscal year
2014, and offsetting decreases in fuel costs.
For fiscal year 2014, operating transfers-out totaling $28.6 million went to the Okeechobee Basin
Capital Projects Fund to support scheduled capital improvement projects. Operating transfers-in
totaled $0.2 million during fiscal year 2014.
Everglades Restoration Trust Special Revenue Fund
The Everglades Restoration Trust Special Revenue (SR) Fund accounts for fiscal activity related to
the operations and maintenance of the Stormwater Treatment Areas (STAs) as required by the
Everglades Forever Act. Funding is provided through a .0587 mill tax levy, non-ad valorem
assessments to property owners in the Everglades Agricultural Area, Alligator Alley toll revenues
pursuant to Florida Statutes, and interest earnings.
At September 30, 2014, total fund balance amounted to $9.8 million, of which $21.5 million is
restricted, leaving a ($11.7) million unrestricted fund balance. The fund balance is restricted above
the total fund balance due to the Governing Board obligating these funds for future projects in the
special revenue fund verses the capital projects fund of the same name, where the project
expenditures are recorded. This negative fund balance will be adjusted with future transfers
between the Everglades Restoration Trust Special Revenue Fund and the Everglades Restoration
Trust Capital Projects Fund. Ad valorem and agricultural privilege tax revenues of $35.7 million
and $11.4 million, respectively, were recognized in fiscal year 2014, reflecting comparable
amounts from prior fiscal year revenues of$35.6 million and $11.6 million.
Expenditures accounted for in the Everglades Restoration Trust Special Revenue Fund were
relatively comparable between fiscal years 2014 and 2013, increasing slightly by $1.0 million, to
$30.1 million from $29.1 million. Transfers-out to other funds totaled $24.1 million, with $21.9
million going to the Everglades Restoration Trust Capital Projects Fund to fund capitalizable
expenditures, and $2.2 million to the Florida Bay Special Revenue Fund, representing half the
Alligator Alley toll proceeds received from FDOT. Fund balance decreased slightly by $0.8 million
from fiscal year 2013 to fiscal year 2014.
Okeechobee Basin Capital Projects Fund
The Okeechobee Basin Capital Projects Fund is restricted for proceeds of ad valorem taxes for
capital expenditures incurred towards projects benefiting all or part of a 15-county area designated
as the Okeechobee Basin. Revenue is mainly provided by operating transfer from the
Okeechobee Basin Special Revenue Fund. The total fund balance of the Okeechobee Basin
Capital Projects Fund at September 30, 2014 was $16.9 million, a decrease of $1.7 million from
fiscal year 2013.
11-12
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Total revenues of the fund remained steady at $0.1 million, all of which is investment earnings.
Total expenditures increased $12.1 million during fiscal year 2014 in comparison to fiscal year
2013, from $18.4 million to $30.5 million. The increase is related to increases in project costs
associated with the District's water control infrastructure.
Operating transfers-in totaled $28.6 million, received from the Okeechobee Basin Special Revenue
Fund to support scheduled capital improvement projects.
Everglades Trust Capital Projects Fund
The Everglades Trust Capital Projects Fund was established to account for and report financial
resources that are restricted, committed or assigned to capital expenditures to construct
Stormwater Treatment Areas (STAs) which will cleanse stormwater runoff from the Everglades
Agricultural Area (EAA) through naturally occurring biological and physical processes. Additional
objectives include hydroperiod restoration and water supply. Revenue for this fund is provided
mainly through operating transfers from the Everglades Restoration Trust Special Revenue Fund.
During fiscal year 2014, the fund balance of the Everglades Trust Capital Projects Fund decreased
$2.0 million to $96.8 million at fiscal year end.
Total revenues in the fund increased by $1.0 million; to $1.1 million. This increase relates to
investment earnings, which saw a $0.7 million increase between fiscal years primarily due to a
significant net market gain on investments.
Total expenditures decreased slightly, by approximately $2.0 million in fiscal year 2014 to $23.8
million, resulting from the completion, or substantial completion of several Everglades-related
capital projects during the prior year.
For fiscal year 2014, operating transfers netted to a total of $20.7 million to support costs
associated with capital outlay incurred towards projects pursuant to the Everglades Forever Act for
restoration of the Everglades. The recipient fund was the Everglades Restoration Trust Special
Revenue Fund.
Save Our Everglades Capital Projects Fund
The Save Our Everglades Capital Projects Fund accounts for revenues and capital expenditures
for the Comprehensive Everglades Restoration Plan (CERP) and the Northern Everglades Estuary
Protection Program (NEEPP) which are funded from the State's Save Our Everglades Trust Fund.
During fiscal year 2014, the fund balance of the Save Our Everglades Capital Projects Fund
decreased $3.8 million to ($2.4) million. This deficit is expected to be funded by a pending
reimbursement from Florida Department of Environmental Protection.
Revenues in the fund increased $38.5 from the prior fiscal year to $50.3 million. The majority of
this increase is attributable to $26.1 million received from Palm Beach County for the purchase of
11-13
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
approximately 1.9 thousand acres of land related to the Loxahatchee River Watershed Restoration
Project. In addition, the District received additional funding in fiscal year 2014 for Restoration
Strategies Projects of$11.3 million.
Operating transfers-in totaled $1.2 million, of which $1.0 million was received from the General
Fund to cover costs deemed ineligible for funding from the Save Our Everglades Trust Fund.
COPS Everglades Forever Capital Projects Fund
The COPS Everglades Forever Capital Projects Fund accounts for capital expenditures to support
the construction of projects in the Everglades/Long Term Plan Implementation Program with
resources from issuance of the Certificates of Participation.
Revenues in the fund remained constant at $0.1 million at the end of fiscal year 2014 and
consisted of investment earnings.
Expenditures increased to $25.8 million from the prior year total of $0.5 million. This increase is
related to the beginning of construction on the A-1 Flow Equalization Basin, a key Restoration
Strategies project to clean water flowing into the Everglades.
Operating transfers-in totaled $15.9 million which was received from the COPS Comprehensive
Everglades Restoration Plan Capital Fund to fund the A-1 Flow Equalization Basin project.
GENERAL FUND BUDGETARY HIGHLIGHTS
Budgeted revenues and expenditures in the final General Fund budget were $115.8 million and
$134.5 million, respectively. Budgeted revenues increased $0.3 million from the original adopted
budget for fiscal year 2014, while budgeted expenditures increased slightly (approximately $1.0
million) from the original budget. Actual revenues were $2.3 million (2.0 percent) more than the
budget.
At the end of fiscal year 2014, the General Fund's budget for Administrative Services and
Executive Offices reflected a remaining available balance of$5.3 million. The available balance in
Administrative Services and Executive Offices was primarily due to outstanding encumbrances in
the Mission Support Program and the Restoration Program, each of which had outstanding
encumbrances totaling $1.3 million. The outstanding encumbrances in Mission Support related to
the General Services, Information Technology, and Office of Counsel organization units, and the
outstanding encumbrance in the Restoration Program related to local government agreements with
various counties and contractual services.
At the end of fiscal year 2014, the General Funds budget for Operations and Maintenance reflected
a remaining available balance $3.5 million. Of that amount, $1.3 million was attributed to the
Operations and Maintenance Program and consisted of unspent budget due to lower fuel costs
and outstanding encumbrances related to the CERP Bio-Control Implementation Project,
contractual services, and interagency agreements; and $1.9 million was attributed to the
Restoration Program and consisted of unspent budget related to salaries and fringes and lower
11-14
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
fuel costs and $1.6 million in outstanding encumbrances related to L-8 Infrastructure Maintenance
and Repairs, FPL Distribution Agreement-electrical services, and other contractual services.
The final amended General Fund budget included $20.6 million in reserves comprised of
managerial reserves of $4.7 million and $15.7 million in contingency reserves. The District does
not expend funds directly out of managerial or contingency reserve accounts. The use of this
funding requires Governing Board budget transfer approval, authorizing the movement of budget
authority out of managerial reserves and/or contingency reserves to a District program within a
resource area's operating or capital budget.
CAPITAL ASSETS AND DEBT ADMINISTRATION
CAPITAL ASSETS
As of September 30, 2014, the District's investment in capital assets was $4.7 billion, up $103.9
million from the end of fiscal year 2013. This investment in capital assets includes land,
easements, canals and levees, buildings, intangibles, equipment, improvements, water control
structures, and construction in progress.
Capital Assets
(net of depreciation)
2014 2013
Land $ 2,564,959,930 $2,535,347,849
Easements 70,390,549 52,415,282
Canals and Levees 702,110,108 656,383,787
Buildings 84,503,044 81,698,507
Intangibles 8,617,340 13,489,226
Equipment 40,636,068 43,362,730
Improvements 14,990,688 15,344,591
Water Control Structures 813,466,178 714,425,092
Construction in Progress 447,419,549 530,728,881
Total $4,747,093,454 $4,643,195,945
Major capital asset activity during the current fiscal year included the following:
11-15
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Construction in Progress Highlights
The District's investment in construction in progress decreased $83.3 million during fiscal year
2014. This change is primarily due to the net effect of the following:
• $87.0 million expended on continuing projects as follows:
o $25.8 A-1 Flow Equalization Basin
o $15.3 million expended on L-8 Reservoir Infrastructure.
o $11.0 million expended on North Shore Trash Rakes.
• 170.3 million related to completed projects which were transferred out of construction in
progress, the most significant of which are:
o $133.0 million for STA-Compartment C Build-out (water control structures and
canals and levees).
o $31.1 million for Lakeside Ranch STA.
o $4.3 million for C-44 Building for microwave, tower, and generator.
o $1.9 million for other projects.
Water Control Structure Highlights
The District's investment in water control structures increased $99.0 million during fiscal year 2014,
$115.9 million of which was transferred from construction in progress, the most significant
completed projects include:
o $61.0 million expended on the In-Flow Pump Structure at G-508.
o $31.1 million expended on various pump stations.
o $9.3 million expended on the G-335 Pump Station.
o $3.3 million expended on Gated Structures at Lakeside Ranch STA.
o $11.2 million in other projects.
Additional information on the District's capital assets can be found in Note 9 on page III-32 of this
report.
11-16
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
LONG-TERM DEBT ADMINISTRATION
At the end of fiscal year 2014, the District had $491.7 million in total outstanding long-term debt,
representing a decrease of $17.2 million from the prior year. The balance is comprised of bonds
and Certificates of Participation (COPS).
Long-term Debt Outstanding
2014 2013
Special Obligation Land Acquisition Bonds $ 13,105,000 $ 19,225,000
Certificates of Participation 478,550,000 489,610,000
Total $ 491,655,000 $ 508,835,000
The Special Obligation Land Acquisition Refunding Bonds Series 2002 ($4.9 million) and Series
2003 ($8.2 million) finance the acquisition of environmentally sensitive lands. Documentary stamp
tax revenues provided through the State of Florida's Water Management Lands Trust Fund secure
the repayment of this debt.
In November 2006, the District issued $546.1 million in Certificates of Participation to provide for
the lease-purchase financing of the acquisition, construction, and equipping of certain expedited
Everglades Restoration projects. The outstanding balance at the end of fiscal year 2014 was
$478.6 million.
At September 30, 2014, the District's COPS were rated Aa3, AA and AA- by Moody's, S&P and
Fitch Ratings, respectively and the District's Land Acquisition Bonds, Series 2002 and 2003 were
rated A3, A+ and A by Moody's, S&P and Fitch Ratings, respectively. A bond rating indicates the
investment quality of the bonds, which is based on an assessment of the economic and financial
condition of the agency, and is reflective of the overall managerial expertise of the agency. The
District strives to maintain superior bond rating for its obligations in order to realize more favorable
borrowing costs.
Debt Management Policy
Since the 1990's, the District made a commitment to the citizens of South Florida to operate in
accordance with sixteen guiding principles designed to achieve and maintain the highest standards
of fiscal accountability. The Governing Board of the District adopted a Debt Management Policy in
May 1993, which was updated in April 2005 and revised again in October 2008. The policy and
related guidelines enables the District to identify and address potential concerns and alternatives
early in the capital planning and debt issuance process.
11-17
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
The policy directs the District to:
• Exhibit purposeful restraint in incurring debt.
• Follow a policy of full disclosure in all financial reports and official statements issued for
indebtedness.
• Refrain from issuing short-term debt that requires repeated annual appropriation.
• Limit long-term debt to no more than the estimated life of the capital assets financed and
refrain from issuing debt to finance current operations or normal maintenance.
• Project debt requirements on a five-year basis to facilitate better short-term decisions in
light of other priorities that may arise, and examine the longer-range implications and
effects of debt issuance.
Included in the District's adopted Debt Management Policy are benchmarks which are self-
imposed boundaries and not statutorily established levels of acceptance dedicated to prudent debt
management. The District's debt burden shall not exceed the benchmark levels, as described
below, and no additional debt shall be authorized if the projected debt burden would exceed these
levels:
• The net debt per capita shall not exceed $350.
• Debt service shall not exceed 30 percent of revenues legally available to the District to pay
debt service including, but not limited to, the available ad-valorem revenues, related interest
income thereon and permit fee revenue.
• The debt-to-assessed value shall not exceed 0.30 percent of the assessed value of
property within the District.
Florida Statute requires that total annual debt service for debt issued after January 1, 2009 cannot
exceed 20 percent of the annual ad valorem tax revenues, unless approved by the Joint Legislative
Budget Commission.
Additional information about the District's long-term debt can be found in Note 10 on pages III-33
through III-34 of this report.
11-18
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Economic Outlook
Ad valorem property taxes continue to be the District's largest single, ongoing source of revenue.
Approximately 36.9 percent of the District's fiscal year 2015 budget is projected to be funded
through ad valorem tax revenues. Taxable property values within the District increased by 3.7
percent from $670.2 billion in 2013 to $694.9 billion in 2014. Ad valorem taxes projected for fiscal
year 2015 are $265.9 million, an estimated $0.7 million less than the prior year. This decrease in
ad valorem revenue is a result of rolled-back millage rates and reduced prior year taxable values.
The District's fiscal year 2015 budget is based on a rolled-back millage rate to maintain baseline ad
valorem revenue at $266.6 million. Rolled-back millage rates do not provide a continuation level of
baseline Ad Valorem revenue due to reduced prior year final taxable values. The adopted rates will
generate $263.1 million in baseline revenues, plus $2.8 million of new construction, for total ad
valorem revenue of$265.9 million.
The remaining revenue budget includes anticipated funding from state and federal sources, as well
as from fees and investment earnings. State revenues, which are the District's second major
source of funding, are projected at $204.2 million, primarily from the Save Our Everglades Trust
Fund in support of initiatives related to Everglades' restoration.
The District recognizes the importance of how available revenues can change in response to
economic factors. There are many economic factors to consider and monitor relating to the District
and changes in these economic factors directly impact the District's financial health and future
revenue outlook. The following discussion will focus on economic factors affecting the District's ad
valorem revenue budget and were considered in preparing the budget for the 2014 fiscal year.
Property Values
Property values have a significant and direct impact on ad valorem taxes. An increase in property
values will often indicator a healthy economy. Counties experiencing population and economic
growth are likely to experience long-term increases in property values due to increased demand for
homes. Since property values are the primary revenue source to the District, the District monitors
the market values and continues to perform rolled-back rate calculations in accordance with the
Truth In Millage (TRIM) process in an effort to achieve a stabilized revenue source.
The housing market has deteriorated significantly since its peak at the end of 2006 and Florida has
been one of the hardest hit states along with Arizona, California, and Nevada. This downturn,
which began in 2007, can be attributed to soaring home prices and over-supply from home builders
and investors. These conditions resulted from the easing of underwriting standards and the
consumers increased appetite for risk, making it less difficult for prospective homebuyers to qualify
for a mortgage. In order to afford a home, homebuyers became increasingly dependent on exotic
mortgage products intended to reduce down payments and monthly payments. After reaching the
lowest levels in late 2010 / early 2011, property values have seen a gradual increase in the past
11-19
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
four years, with indications of stabilization to moderate gains through 2015, as further depicted by
trend data presented under the Home Prices section on the following page.
Foreclosures
According to RealtyTrace, the leading online marketplace for foreclosure properties, foreclosure
filings, which include default notices, scheduled auctions, and bank repossessions, were reported
on 922,267 properties in the United States as of the report date, compared to the prior year figures
of 1,231,082. Their report shows a nationwide foreclosure rate of one in every 1,316 U.S. housing
units, compared to one in every 1,155 twelve months prior. Florida, rounding off the top five states
related to foreclosure rates, reflected a foreclosure rate of one in every 518 units, with compared to
one in every 392 units reported last year. Of the five top counties in Florida, in terms of foreclosure
rates only Osceola is within the District's boundaries. In January 2015, the number of properties
that received a foreclosure filing in Florida was 6.0% higher than the previous month and 33.0%
lower than the same time last year.
In summary, while foreclosure rates nationwide, and in Florida have decreased over the past year,
Florida continues to lead the nation in foreclosures, with significant counties with higher ratios
residing within the District's tax base, thereby having a continuing impact on economics of the
region and accordingly, tax revenues available to the District.
Home Prices
The Federal Housing Finance Agency's House Price Index indicates that home prices have
increased slightly since bottoming out in 2011 when real estate values saw declines in the fifty
percent range compared to peaks in 2007. Home prices and property values in central and south
Florida have seen a continual and steady resurgence over the past few years, gaining a portion of
the market loss of 10 to 12 percent on average compared to the valley experienced in 2011. While
home prices continue to be significantly below the peaks of late 2006, recent trends indicate a
continual upward movement in value. The Federal Housing Finance Agency Home Price Index,
graphically depicted below, measures the average change in value of residential real estate in
central and southern Florida given a constant level of quality.
11-20
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Federal Housing Finance Agency
Home Price Index 2006 - 2014
350
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cu 150
- 100
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Housing Price Index
Population Growth
Another economic factor driving ad valorem taxes is population growth and the impact it has on
property values. Population growth impacts property values because as the population increases,
demand for homes increases, which results in higher property values. This relationship between
the real estate market and change in population will affect District revenues because ad valorem
taxes are collected from property owners based on property values set by the respective county
property appraiser. It is important to monitor population trends to effectively develop future budgets
capable of being supported by the tax base. In addition, as the population increases, the use of
water resources increases, which amplifies the need to protect and restore natural resources and
manage and regulate the usage and storage of the region's water supply.
In 2014, the District's population increased slightly by 1.2 percent, compared to the prior year's
increase of 1.03 percent. Over the past ten years (2005 to 2014) the population growth across the
District averaged 1.07 percent. The rate of population growth within the District's boundary is
consistent with the state-wide trend as shown below:
H-21
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Population Growth -Annual Percentage Change
3.0% -
2.5%
544 2.0%
1.5%
U 1.0%
C
u 0.5%
a 0.0%
-0.5%
1.0%
tiZZ( tie tie 1~
Year
—4—District —W.State
Source: State of Florida, Office of Economic& Demographic Research
General Fund—Assigned and Unassigned Fund Balance
At the end of fiscal year 2014, the total assigned and unassigned fund balance in the General Fund
is $48.5 million. This represents an increase of $13.1 million or approximately 37.0 percent from
the comparable fund balance reported in fiscal year 2014. The District has appropriated $35.4
million of the $48.5 million for spending in the fiscal year 2015 budget.
NEXT YEAR'S BUDGETS AND RATES
As a result of the requirements mandated by Senate Bill 1986, the District's fiscal year 2015
adopted millage rates have been reduced from the fiscal year 2014 rates. Beginning in fiscal year
2015, all property owners within the District's boundaries will be assessed a lower District-at-Large
millage rate of .1577 mills, reduced from the prior year's rate of .1685 mills. In addition, property
owners within the Okeechobee Basin will be assessed both the Okeechobee Basin tax rate of
.1717 mills and the Everglades Construction Project tax rate of .0554 mills, both of which are
reduced from the fiscal year 2014 rates of .1838 and .0587, respectively, for a combined tax
assessment of .3842 mills. Property owners within the Big Cypress Basin will be assessed the Big
Cypress Basin millage rate of .1577 mills, which represents a reduction from the fiscal year 2014
rate of .1593, and the District-at-Large tax rate of .1685 mills, for a combined tax assessment of
.3097 mills. State law limits the combined District-at-Large and basin tax millage for each of the
two basins at 0.8 mills (80 cents per $1,000 of taxable value). The state constitutional limit is
slightly higher at 1 mill ($1.00 per $1,000 of taxable value). Consequently, the District's approved
budget for fiscal year 2015 totals $720.4 million, an increase of approximately $92.9 million from
the fiscal year 2014 amended budget of$627.5 million.
11-22
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2014
Requests for Information
The District's basic financial statements are designed to present users (citizens, taxpayers,
customers, investors and creditors) with a general overview of the District's finances and to
demonstrate the District's accountability. If you have questions about the report or need additional
financial information, contact the District's Finance Bureau Chief, Administrative Services Division
at P.O. Box 24680, West Palm Beach, Florida 33416-4680.
11-23
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11-24
FINANCIAL SECTION
BASIC FINANCIAL STATEMENTS
South Florida Water Management District
Statement of Net Position
September 30, 2014
Total
Governmental
Activities
ASSETS
Cash and Investments $ 359,554,296
Accounts Receivable 1,249,197
Due from Other Governments 20,350,067
Inventory 5,718,178
Prepaids 613,249
Other Assets 2,004,217
Restricted Assets:
Temporarily Restricted
Cash and Investments 163,708,784
Permanently Restricted
Cash and Investments 14,967,099
Capital Assets
Land and Easements 2,635,350,479
Construction In Progress 447,419,549
Canals and Levees 702,110,108
Other Capital Assets, Net of Depreciation 962,213,318
Total Assets 5,315,258,541
LIABILITIES
Accounts Payable 52,888,707
Due to Other Governments 600,000
Unearned Revenue 1,109,201
Noncurrent Liabilities:
Due Within One Year
Bonds Payable 6,400,000
Certificates of Participation Payable 11,610,000
Compensated Absences 10,539,000
Self Insurance Claims Payable 2,564,240
Due in More Than One Year
Bonds Payable, Net of Unamortized Premiums/Discounts 6,738,839
Certificates of Participation Payable, Net of Unamortized Premiums/Discounts 480,150,427
Compensated Absences 3,849,600
OPEB Obligation 26,322,960
Self Insurance Claims Payable 2,953,678
Total Liabilities 605,726,652
NET POSITION
Net Investment in Capital Assets 4,278,898,454
Restricted for:
Debt Service 30,249,638
Wetlands Mitigation
Expendable 22,584,805
Nonexpendable 14,967,099
Environmental Programs 290,169,479
Capital Construction 27,081,874
Unrestricted 45,580,540
Total Net Position
$4,709,531,889
See Accompanying Notes to the Financial Statements
III-1
South Florida Water Management District
Statement of Activities
For the Year Ended September 30, 2014
Net Revenue
(Expense)and
Change in Net
Program Revenues Position
Operating Capital Total
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Land Stewardship $ 13,762,682 $ 21,846,034 $ 3,169,386 $ - $ 11,252,738
Mission Support 45,166,915 12,035,727 3,833,388 - (29,297,800)
Modeling and Scientific Support 11,572,865 - 25,955 - (11,546,910)
Operations and Maintenance 114,290,603 77,820 16,552,486 - (97,660,297)
Regulation 19,194,734 3,718,028 16,865 - (15,459,841)
Restoration 85,037,648 - 17,319,769 65,112,460 (2,605,419)
Water Supply 17,464,823 - 102,840 - (17,361,983)
Interest on Long Term Debt 23,272,985 - - - (23,272,985)
Total $329,763,255 $ 37,677,609 $ 41,020,689 $ 65,112,460 ($ 185,952,497)
General Revenues:
Taxes:
Property Taxes, Levied for General Purposes 233,527,102
Property Taxes, Levied for Everglades Restoration 47,140,188
Investment Earnings 6,058,186
Miscellaneous 2,087,127
Total General Revenues 288,812,603
Change in Net Position 102,860,106
Net Position at Beginning of Year 4,606,671,783
Net Position at End of Year $4,709,531,889
See Accompanying Notes to the Financial Statements
III-2
South Florida Water Management District Page 1 of 2
Balance Sheet
Governmental Funds
September 30,2014
Okeechobee Everglades Okeechobee Everglades
Basin Restoration Trust Basin Trust
General Special Revenue Special Revenue Capital Projects Capital Projects
ASSETS
Cash and Investments $ 71,128,904 $ 101,602,287 $ 10,383,286 $ 24,871,470 $ 80,352,391
Cash Held by Trustee - - - - 13,016,100
Accounts Receivable 113,407 619,661 14,590 30,179 112,440
Due from Other Governments 929,192 8,603,659 382,034 97,985 328,261
Due from Other Funds - 4,404,227 -` - 4,395,155
Inventory - 5,569,856 - - -
Prepaid and Other Assets 65,451 - - 375 -
Total Assets $ 72,236,954 $ 120,799,690 $ 10,779,910 $ 25,000,009 $ 98,204,347
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 8,418,667 $ 4,756,013 $ 776,148 $ 8,049,275 $ 1,112,601
Due to Other Governments - - - - -
Due to Other Funds 368,279 301,482 91,655 - _
Unearned Revenue - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 30,310 7,885,273 28,965 97,985 328,261
Total Liabilities&Deferred Inflows of 8,817,256 12,942,768 896,768 8,147,260 1,440,862
Resources
FUND BALANCES
Nonspendable - 5,569,856 - -
Restricted - 102,287,066 21,530,559 16,852,749 96,763,485
Committed 14,919,347 - - -
Assigned 42,477,518 - - - -
Unassigned 6,022,833 - (11,647,417) - -
Total Fund Balances 63,419,698 107,856,922 9,883,142 16,852,749 96,763,485
Total Liabilities,Deferred Inflows of $ 72,236,954 $ 120,799,690 $ 10,779,910 $ 25,000,009 $ 98,204,347
Resources&Fund Balances -
See Accompanying Notes to the Financial Statements Continued
III-3
South Florida Water Management District Page 2 of 2
Balance Sheet
Governmental Funds
September 30,2014
COPS
Save Our Everglades Other Total
Everglades Forever Governmental Governmental
Capital Projects Capital Projects Funds Funds
ASSETS
Cash and Investments $ - $ - $ 171,506,330 $ 459,844,668
Cash Held by Trustee - 22,731,767 24,497,331 60,245,198
Accounts Receivable - - 317,975 1,208,252
Due from Other Governments 8,136,563 - 1,872,373 20,350,067
Due from Other Funds - - - 8,799,382
Inventory - - 148,322 5,718,178
Prepaid and Other Assets - _ 817,623 883,449
Total Assets $ 8,136,563 $ 22,731,767 $ 199,159,954 $ 557,049,194
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 4,791,942 $ 7,701,126 $ 4,311,079 $ 39,916,851
Due to Other Governments - - 600,000 600,000
Due to Other Funds 4,016,664 4,395,155 406,530 9,579,765
Unearned Revenue - _ 1,109,201 1,109,201
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 1,691,871 - 18,643 10,081,308
Total Liabilities&Deferred Inflows of 10,500,477 12,096,281 6,445,453 61,287,125
Resources
FUND BALANCES
Nonspendable - - 15,115,421 20,685,277
Restricted - 10,635,486 164,612,246 412,681,591
Committed
- - 14,919,347
Assigned - - 22,923,057 65,400,575
Unassigned (2,363,914) -
(9,936,223) (17,924,721)
Total Fund Balances(Deficits) (2,363,914) 10,635,486 192,714,501 495,762,069
Total Liabilities,Deferred Inflows of $ 8,136,563 $ 22,731,767 $ 199,159,954 $ 557,049,194
Resources&Fund Balances
See Accompanying Notes to the Financial Statements
III-4
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
September 30,2014
Fund balances-total governmental funds $495,762,069
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in government activities are not financial
resources and therefore are not reported in the governmental funds.
Governmental capital assets $5,117,196,151
Less accumulated depreciation ($370,134,824) $4,747,061,327
Long term liabilities not due and payable with current available resources
are not reported in the governmental funds.
Bonds payable ($13,105,000)
Bond premium payable ($33,839)
Certificates of participation payable ($478,550,000)
Certificates of participation premium payable ($13,210,427)
Compensated absences ($14,388,600)
Other post employment benefits(OPEB)payable ($26,322,960)
Unamortized deferred interest $280,768 ($545,330,058)
Bond and certificates of participation interest due October 1,2014
are not reported as a liability of the governmental funds.
Accrued interest payable-bonds ($313,663)
Accrued interest payable-certificates of participation ($11,925,975) ($12,239,638)
Assets not available to provide current resources are offset with deferred inflows of
resources in the fund statements. The reduction of the liability and recognition of
revenue increases net position in the Statement of Net Position. $10,081,308
Internal Service Funds are used by management to charge the costs of certain
activities,such as worker's compensation,general and automobile liability,and health
benefits to individual funds. The assets and liabilities of the Internal Service Funds
are included in govermental activities in the statement of net position. $14,196,881
Net position of governmental activities $4,709,531,889
See Accompanying Notes to the Financial Statements
111-5
South Florida Water Management District Page 1 of 2
Statement of Revenues,Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30,2014
Okeechobee Everglades Okeechobee Everglades
Basin Restoration Trust Basin Trust
General Special Revenue Special Revenue Capital Projects Capital Projects
REVENUES
Ad Valorem Property Taxes $ 112,385,298 $ 111,802,444 $ 35,700,467 $ - $ -
Agricultural Privilege Taxes - - 11,439,721 - -
Intergovernmental 106,458 5,517,940 4,752,985 - 150,000
Investment Earnings(Losses) 1,357,462 1,513,729 375,219 134,231 917,627
Licenses,Permits and Fees 3,720,028 85,738 _ -
Sale of District Property 38,592 213,400 6,267 - 310
Leases 141,169 1,169,445 _ -
Other 378,105 308,762 9,125 15 -
Total Revenues 118,127,112 120,611,458 52,283,784 134,246 1,067,937
EXPENDITURES
Current Operating
Land Stewardship 1,162,863 5,207,524 - - -
Mission Support 30,913,752 2,829,717 _ - -
Modeling and Scientific Support 12,235,335 437,607 - - -
Operations and Maintenance 20,032,114 71,681,043 10,839 - -
Regulation 18,206,221 1,692 _ - -
Restoration 13,495,929 12,094,074 30,126,462 - -
Water Supply 7,537,341 334,662 - - -
Capital Outlay - - - 30,479,333 4,331,068
Debt Service
Bond Principal Retirement - - - - -
Bond Interest - - - - -
COPS Bond Principal Retirement - - - - 6,116,512
COPS Bond Interest -
- - 13,342,313
Total Expenditures 103,583,555 92,586,319 30,137,301 30,479,333 23,789,893
Revenues in Excess of(Less than)Expenditures 14,543,557 28,025,139 22,146,483 (30,345,087) (22,721,956)
OTHER FINANCING SOURCES(USES)
Transfers In 25,360,610 173,861 1,138,000 28,613,627 21,856,958
Transfers Out (39,600,356) (28,819,795) (24,056,958) (10,704) (1,138,000)
Total Other Financing Sources(Uses) (14,239,746) (28,645,934) (22,918,958) 28,602,923 20,718,958
Net Change in Fund Balances 303,811 (620,795) (772,475) (1,742,164) (2,002,998)
Fund Balances at Beginning of Year 63,115,887 108,477,717 10,655,617 18,594,913 98,766,483
Fund Balances at End of Year $ 63,419,698 $ 107,856,922 $ 9,883,142 $ 16,852,749 $ 96,763,485
See Accompanying Notes to the Financial Statements Continued
III-6
South Florida Water Management District Page 2 of 2
Statement of Revenues,Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30,2014
COPS
Save Our Everglades Other Total
Everglades Forever Governmental Governmental
Capital Projects Capital Projects Funds Funds
REVENUES
Ad Valorem Property Taxes $ - $ - $ 9,339,360 $ 269,227,569
Agricultural Privilege Taxes - - - 11,439,721
Intergovernmental 50,251,826 - 24,832,603 85,611,812
Investment Earnings(Losses) - 155,487 1,437,101 5,890,856
Licenses,Permits and Fees - - 21,836,116 25,641,882
Sale of District Property - - 15,577 274,146
Leases - - 3,318,139 4,628,753
Other - - 1,299,546 1,995,553
Total Revenues 50,251,826 155,487 62,078,442 404,710,292
EXPENDITURES
Current Operating
Land Stewardship - - 7,579,911 13,950,298
Mission Support - - 170,540 33,914,009
Modeling and Scientific Support - - - 12,672,942
Operations and Maintenance - - 6,227,949 97,951,945
Regulation - - 63,889 18,271,802
Restoration - - 20,475,644 76,192,109
Water Supply - - 956,111 8,828,114
Capital Outlay 55,303,404 25,803,587 12,147,462 128,064,854
Debt Service
Bond Principal Retirement - - 6,120,000 6,120,000
Bond Interest - - 768,598 768,598
COPS Bond Principal Retirement - - 4,943,488 11,060,000
COPS Bond Interest - - 10,783,527 24,125,840
Total Expenditures 55,303,404 25,803,587 70,237,119 431,920,511
Revenues in Excess of(Less than)Expenditures (5,051,578) (25,648,100) (8,158,677) (27,210,219)
OTHER FINANCING SOURCES(USES)
Transfers In 1,217,308 15,928,773 49,904,730 144,193,867
Transfers Out - (100,000) (50,468,054) (144,193,867)
Total Other Financing Sources(Uses) 1,217,308 15,828,773 (563,324) -
Net Change in Fund Balances (3,834,270) (9,819,327) (8,722,001) (27,210,219)
Fund Balances at Beginning of Year 1,470,356 20,454,813 201,436,502 522,972,288
Fund Balances(Deficit)End of Year ($ 2,363,914) $ 10,635,486 $ 192,714,501 $ 495,762,069
See Accompanying Notes to the Financial Statements
III-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Reconciliation of the Statement of Revenues,Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended September 30,2014
Net change in fund balances-total governmental funds ($27,210,219)
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlay as expenditures. However,
in the statement of activities,the cost of those assets are depreciated
over their estimated useful lives.
Capital outlay $128,064,854
Current year depreciation expense ($35,536,796) $92,528,058
The net effect of various transactions involving capital assets(i.e.adjustments,
disposals,transfers,donations)is a decrease to net position $11,374,562
Repayment of borrowed principal from bonds,bank loans,and
capital leases is an expenditure in the governmental funds,but the
repayment reduces long-term liabilities in the statement of net position.
Bonds principal payment $6,120,000
COPs loan principal payment $11,060,000 $17,180,000
Some expenses reported in the statement of activities do not require
current financial resources and therefore are not reported as
expenditures in the governmental funds.
Change in long term compensated absences $1,447,400
Change in OPEB payable ($2,283,592)
Change in bond interest payable $141,272
Change in COPs interest payable $273,890
Amortization of deferred interest on bonds ($280,768)
Amortization of discount on debt-bonds ($3,237)
Amortization of discount on debt-certificates ($2,348)
Amortization of premium on debt-bonds $77,793
Amortization of premium on debt-certificates $1,414,848 $785,258
Revenues that are earned but not received within the District's availability
period are recognized in the Statement of Activities when eamed and
subsequently in the governmental funds when they become available.
The net difference is recorded as a reconciling item. $8,017,796
Internal service funds are used by management to charge the costs of
certain activities to the individual funds. The change in net assets of
the internal service funds is reported with governmental activities. $184,651
Change in net position of governmental activities $102,860,106
See Accompanying Notes to the Financial Statements
III-8
South Florida Water Management District
Statement of Net Position
Proprietary Funds
September 30, 2014
Governmental
Activities
Internal Service
Funds
ASSETS
Current Assets
Cash and Cash Equivalents $ 18,140,313
Accounts Receivable 51,887
Due from Other Funds 782,722
Prepaids 538,249
Other Assets 915,000
Total Current Assets 20,428,171
Noncurrent Assets
Furniture, Fixtures and Equipment 27,459
Computer Hardware 3,030
Vehicles 36,224
Accumulated Depreciation (34,586)
Total Noncurrent Assets 32,127
Total Assets 20,460,298
LIABILITIES
Current Liabilities
Accounts Payable $ 743,160
Due to Other Funds 2,339
Claims Payable 2,564,240
Total Current Liabilities 3,309,739
Noncurrent Liabilities
Claims Payable 2,953,678
Total Noncurrent Liabilities 2,953,678
Total Liabilities 6,263,417
NET POSITION
Net Investment in Capital Assets 32,127
Unrestricted 14,164,754
Total Net Position $ 14,196,881
See Accompanying Notes to the Financial Statements
III-9
South Florida Water Management District
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended September 30, 2014
Governmental
Activities
Internal Service
Funds
OPERATING REVENUES
Charges for Services $ 30,534,861
Other Operating Revenue 85,132
Total Operating Revenues 30,619,993
OPERATING EXPENSES
Salaries 442,774
Benefits 147,081
Claims 26,204,479
Purchased Services 191,476
Administrative Fees 1,922,790
Other 1,688,984
Depreciation 5,111
Total Operating Expenses 30,602,695
OPERATING INCOME 17,298
NONOPERATING REVENUES
Interest Earnings 167,330
Gain on Disposal of Capital Assets 23
Total Nonoperating Revenues 167,353
Change in Net Position 184,651
Net Position at Beginning of Year 14,012,230
Net Position at End of Year $ 14,196,881
See Accompanying Notes to the Financial Statements
III-10
South Florida Water Management District
Statement of Cash Flows
Proprietary Funds
For the Year Ended September 30, 2014
Governmental
Actvitities
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Receipts from Customers $ 30,529,532
Cash Payments to Suppliers (3,320,988)
Cash Payments for Salaries, Benefits (589,855)
Claims Paid (27,030,517)
Other Receipts(Payments) (176,996)
Net Cash Used in Operating Activities (588,824)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sale of Capital Assets 23
Net Cash Provided by Capital and Related Financing Activities 23
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest Earnings 167,330
Net Cash Provided by Investing Activities 167,330
Net Increase(Decrease)in Cash and Cash Equivalents (421,471)
Cash and Cash Equivalents, Beginning of Year 18,561,784
Cash and Cash Equivalents, End of Year $ 18,140,313
RECONCILIATION OF OPERATING INCOME TO NET CASH
USED IN OPERATING ACTIVITIES:
Operating Income 17,298
Adjustments to Reconcile Operating Income to Net Cash Used In
Operating Activities
Depreciation 5,111
CHANGES IN ASSETS AND LIABILITIES:
Decrease(Increase)in Accounts Receivable (5,329)
Decrease(Increase)in Due from Other Funds (262,128)
Decrease(Increase)in Prepaids 47,438
Increase(Decrease)in Accounts Payable 434,590
Increase(Decrease) in Due to Other Funds 234
Increase(Decrease)in Estimated Unpaid Claims (826,038)
Net Cash Used in Operating Activities $ (588,824)
See Accompanying Notes to the Financial Statements
III-11
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This Page has been Intentionally Left Blank
III-12
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(1) DESCRIPTION OF THE SOUTH FLORIDA WATER MANAGEMENT DISTRICT III-14
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES III-14
(a) Reporting Entity III-14
(b) Government-wide and Fund Financial Statements III-15
(c) Measurement Focus and Basis of Accounting III-15
(d) Major Governmental Funds and Other Fund Types Ili-16
(e) Budgetary Information III-17
(f) Cash and Investments III-17
(g) Prepaid Items III-18
(h) Inventory III-18
(i) Capital Assets 111-18
(j) Long Term Obligations 1I1-19
(k) Compensated Absences 11I-19
(I) Wetland Mitigation III-20
(m) Fund Balances/ Net Position III-20
(n) Deferred Inflows of Resources III-22
(o) Use of Estimates III-22
(p) Impact of Recently Issued Accounting Pronouncements III-22
(3) CASH AND INVESTMENTS III-25
(4) ACCOUNTS RECEIVABLE III-29
(5) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS III-29
(6) OPERATING LEASE RENTAL REVENUES III-30
(7) PROPERTY TAXES III-31
(8) INTERGOVERNMENTAL TRANSACTIONS III-31
(9) CAPITAL ASSETS ACTIVITY III-32
(10) LONG-TERM LIABILITIES III-33
(11) FUND BALANCE REPORTING III-35
(12) DEFICIT FUND BALANCES III-37
(13) OPERATING LEASES III-37
(14) DEFINED BENEFIT PENSION PLAN III-37
(15) OTHER POST-EMPLOYMENT BENEFITS (OPEB) III-38
(16) INSURANCE ACTIVITIES III-40
(17) CONDEMNATION PROCEEDINGS III-42
(18) MAJOR CONSTRUCTION COMMITMENTS III-42
(19) OTHER COMMITMENTS AND CONTINGENCIES III-44
111-13
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(1) DESCRIPTION OF THE SOUTH FLORIDA WATER MANAGEMENT DISTRICT
The South Florida Water Management District (the "District") is a public corporation organized
under Florida Statutes, Chapter 373, and is controlled by a Governing Board consisting of nine
(9) members appointed by the Governor to staggered four-year terms.
The District covers all or parts of sixteen counties in Central and Southern Florida. The primary
objectives of the District are to promote the protection and restoration of natural systems,
facilitate the development and proper utilization of surface and ground water within District
boundaries, and prevent damage from floods, soil erosion and excessive drainage. To
accomplish these objectives, the District is empowered to manage and regulate the usage and
storage of water within District boundaries and to acquire properties and construct facilities as
necessary. The District works in concert with the State of Florida (the "State") and agencies of
the federal government to accomplish the previously described water management objectives.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements conform to accounting principles generally accepted in
the United States of America (GAAP)for governmental units as prescribed by the Governmental
Accounting Standards Board (GASB) and other recognized authoritative sources. The more
significant accounting policies are summarized in the following paragraphs.
(a) Reporting Entity
The District follows the standards promulgated by GASB Statement No. 14, "The Financial
Reporting Entity", as amended by GASB Codification No. 2100, "Defining the Financial
Reporting Entity"to determine the inclusion of an organization as part of its reporting entity. The
Statement defines the criteria for inclusion as 1)the economic resources received or held by the
separate organization are primarily for the direct benefit of the primary government, 2) the
primary government is entitled to, or has the ability to access a majority of the economic
resources received or held by the separate organization and 3) the economic resources
received or held by the separate organization on behalf of the specific primary government are
significant to that primary government. Based on these criteria, the District has determined that
the South Florida Water Management District Leasing Corporation (the "Corporation") is a
blended component unit. The Corporation's sole purpose is to provide financing for certain
District projects. The Corporation is legally separate from the District and the Board of the
Corporation consists of the nine Board members of the District. Therefore, the financial activities
of the Corporation have been blended (reported as if it were part of the District) with the
activities of the District. The Corporation does not publish individual component unit financial
statements. The District is not a participant in any joint venture.
The District is a component unit of the State of Florida since the Governor appoints the nine
member Governing Board and the District has a financial benefit/burden relationship with the
State. The State provides funding for District programs through the sale of State debt, the
sharing of documentary stamp revenues, and the approval of various annual grants and
entitlements.
III-14
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(b) Government-wide and Fund Financial Statements
The government-wide financial statements, i.e., the statement of net position and the statement
of activities, report information on all of the activities of the District. For the most part, the effect
of interfund activity has been removed from these statements.
The statement of activities demonstrates the degree to which the direct expenses of a given
function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function or segment. Program revenues include: 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services, or privileges provided by
a given function, and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function. Taxes and other items not properly included
among program revenues are reported as general revenues.
Separate financial statements are provided for governmental and proprietary funds. Major
individual governmental funds are reported as separate columns in the fund financial
statements.
(c) Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements have been
met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of
the current period. The District considers revenues from property taxes, intergovernmental
sources and interest to be available if they are collected within sixty (60) days of the end of the
current fiscal period.
Revenues susceptible to accrual are property taxes, interest on investments, intergovernmental
revenues, and leases. Property taxes are recorded as revenues in the fiscal year in which they
are levied for, provided they are collected in the current period or within sixty (60) days
thereafter. Interest on invested funds is recognized when earned and available.
Intergovernmental revenues that are reimbursements for specific purposes or projects are
recognized when all eligibility requirements are met and it is available. All other revenues are
recognized when cash is received.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenses related to compensated absences,
claims and judgments, and other post-employment benefits (OPEB) are recorded only when
payment is due.
III-15
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(c) Measurement Focus and Basis of Accounting (continued)
The District often acquires land for environmental restoration and related purposes sometimes
involving condemnation action in a court of law. Upon action of the Court's Stipulated Order of
Taking, the District recognizes an expenditure for the amount deposited with the Court.
When both restricted and unrestricted resources are available for use, it is the District's policy to
use restricted resources first, then unrestricted resources as they are needed.
The following are definitions of the governmental fund types, excluding the general fund:
Special revenue funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditures for specified purposes
other than debt service or capital projects. The restricted or committed proceeds are
expected to comprise a substantial portion of the inflows reported in the fund.
Capital projects funds are used to account for and report financial resources that are
restricted, committed, or assigned to expenditures for capital outlays, including the
acquisition or construction of capital facilities and other capital assets.
In addition to governmental funds, the District uses a proprietary fund type to report its internal
service fund activity. Proprietary funds are reported using the economic resources
measurement focus and the accrual basis of accounting. With the accrual method of
accounting, revenues are recorded when earned and expenses are recorded at the time the
liabilities are incurred. Operating revenues and expenses generally result from providing
services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating expenses include salaries, benefits, claims payments, purchased
services and depreciation. All items not meeting this definition are reported as nonoperating
revenues and expenses.
(d) Major Governmental Funds and Other Fund Types
The District reports the following major governmental funds:
The General Fund is the District's primary operating fund, and accounts for all financial
resources of the District, except those accounted for in another fund.
The Okeechobee Basin Special Revenue Fund is used to record revenues from within
all or part of a 15-county area designated as the Okeechobee Basin. Funding is
provided by a .1838 mill property tax levy, intergovernmental revenues and permitting
fees, which must be used for expenditures within the Okeechobee Basin.
The Everqlades Restoration Trust Special Revenue Fund is used to account for
expenditures related to the operations and maintenance of the Stormwater Treatment
Areas (STAs) as required by the Everglades Forever Act. Funding is provided through a
.0587 mill tax levy, non-ad valorem assessments to property owners in the EAA, State and
Federal contributions, and interest earnings.
111-16
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(d) Major Governmental Funds and Other Fund Types (continued)
The Okeechobee Basin Capital Projects Fund is used to record capital expenditures
incurred towards projects benefiting all or part of a 15-county area designated as the
Okeechobee Basin. Funding is provided from operating transfers from the Okeechobee
Basin Special Revenue Fund and from interest earnings.
The Everglades Trust Capital Projects Fund is used to record capital expenditures to
construct stormwater treatment areas to cleanse stormwater runoff from the Everglades
Agricultural Area (EAA) through naturally occurring biological and physical processes.
Additional objectives include hydroperiod restoration and water supply. Funding is provided
from operating transfers from the Everglades Restoration Trust Special Revenue Fund, and
interest earnings.
The Save Our Everglades Capital Projects Fund accounts for revenues and capital
expenditures for the Comprehensive Everglades Restoration Plan (CERP) and the
Northern Everglades Estuary Protection Program (NEEPP) which are funded from the
State's Save Our Everglades Trust Fund.
The COPS Everglades Forever Capital Projects Fund accounts for capital expenditures to
support the construction of projects in the Everglades/Long Term Plan Implementation
Program with resources from issuance of the Certificates of Participation.
The District reports the following type of proprietary funds:
Internal service funds are used to account for the financing of goods and services
provided by one department to another on a cost reimbursement basis. The District
reports two internal service funds, one used to account for workers' compensation,
general liability, automobile, and other insurance activities and one to account for self-
funded health and medical benefits provided to the employees of the District and retirees
who choose to remain within the plan.
(e) Budgetary Information
The District has elected to report budgetary comparisons as required supplementary information
(RSI). Please refer to the accompanying notes to the RSI for the District's budgetary
information on page IV-6.
(f) Cash and Investments
Cash includes currency on hand and demand deposits. Cash equivalents for purposes of the
statement of cash flows consist of pooled cash and short-term investments with original
maturities of three months or less from the date of acquisition. The District utilizes pooled cash
accounting whereby excess monies are aggregated for investment purposes. Earnings from
such investments are allocated to the respective funds based on applicable cash participation
by each fund. Negative cash balances in individual funds are reported as interfund payables
with offsetting receivables recorded in loaning fund(s). In accordance with GASB Statement No.
III-17
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(f) Cash and Investments(continued)
31, the District reports investments at their fair market value, with unrealized gains and losses
credited to or charged against investment earnings.
The District's investment portfolio is valued based on a blend of third-party market pricing
services such as BONDEDGE, FISERV, YIELDBOOK and BLOOMBERG.
Non-participating investments, such as non-negotiable certificates of deposit with redemption
values that do not consider market rates, are reported at amortized costs. The District has
investments in two investment pools, Florida Prime (previously known as the Local Government
Surplus Funds Trust Fund - Pool A), and the Florida Local Government Investment Trust (Trust
Fund). Florida Prime is managed by the State Board of Administration. The Florida Local
Government Investment Trust is a member-owned, member-governed investment fund. Under
the guidelines of GASB Statement No. 31, Florida Prime is a "2a-7 like" pool. Accordingly,
investments in Florida Prime are reported at amortized cost. The Trust Fund is accounted for
as net asset value (NAV) pools. As such, its investments have been valued based on their
respective fair value factor as of the financial statement date.
During the year, the District did not directly invest any resources in derivatives. Investments
made through State-administered trust funds may include derivatives. These investments are
made on a pooled basis and the individual risk to the District is unknown.
(g) Prepaid Items
Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year,
but represent items which are applicable to future accounting periods. These amounts do not
constitute available spendable resources even though they are a component of current assets.
(h) Inventory
Inventory is stated at moving average cost and consists of fuel, chemicals and supplies held for
consumption. The cost is recorded as an expenditure at the time individual inventory items are
consumed.
(i) Capital Assets
Capital assets, which include land, canals and levees, buildings, equipment, vehicles,
infrastructure assets (bridges, water control structures) and intangible assets are reported in the
government-wide financial statements. Capital assets are defined by the District as assets with
an initial, individual cost of $1,000 or more and an estimated useful life of one year or more.
Intangible assets are defined as assets that lack physical substance, are nonfinancial in nature,
and have initial useful lives which extend beyond a single reporting period. The District reports
two main types of intangible assets, easements, which are considered non-depreciable and
internally generated software, which is depreciated over its estimated useful life. Items
purchased or acquired are reported at historical cost or estimated historical cost. Donated
assets are recorded at their estimated fair value on the date donated. Maintenance, repairs and
minor renovations are not capitalized.
III-18
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i) Capital Assets (continued)
Expenditures that materially increase values, change capacities or extend useful lives of assets
are capitalized. Upon sale or retirement, the costs and their related accumulated depreciation
are eliminated from the respective accounts.
Capital assets are depreciated using the straight-line method over the following estimated useful
lives:
Asset Years
Intangibles 5-10
Vehicles and Equipment 5-25
Buildings 10-40
Improvements Other Than Buildings 12-25
Water Control Structures 25-50
Land, easements (intangibles), canals and levees have indefinite useful lives and as such are
not considered to be depreciable capital assets.
(j) Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the government-wide Statement of Net Position. Bonds payable are
reported net of the applicable bond premium or discounts. Bond premiums and discounts are
amortized over the life of the bonds using the straight line method, which does not result in a
material difference from the effective interest method. Deferred amounts (the difference
between the reacquisition price and the net carrying amount) on refunding are amortized over
the shorter of the remaining life of the old debt or the life of the new debt using the straight line
method, which does not result in a material difference from the effective interest method. Debt
issuance costs, except for the portion which relates to prepaid insurance costs, are recognized
as an expense in the period incurred. Prepaid insurance costs are reported as an asset and are
recognized as expense on a straight line basis over the duration of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts are reported as other financing uses. Debt
principal payments and issuance costs, whether or not withheld from actual debt proceeds, are
reported as debt service expenditures.
(k) Compensated Absences
District employees are granted a specific number of vacation and sick leave hours with pay.
Non-management employees are permitted to accrue a maximum of 240 hours of vacation as of
the end of the payroll calendar year. Managers are permitted to accrue a maximum of 480
hours of vacation as of the end of the payroll calendar year. Annual leave in excess of
maximum carryover amounts at the end of the payroll calendar year will be converted to sick
III-19
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(k) Compensated Absences(continued)
leave. Upon termination of employment, employees hired prior to July 1, 2012 are paid for 25
percent of unused sick leave after vesting with at least six years of service. Employees hired
after July 1, 2012 must have eight or more consecutive years of District service to receive the
25 percent payout. The maximum payout for accrued but unused sick leave is 480 hours.
The costs of vacation and sick leave benefits (compensated absences) are budgeted and
expended in the respective operating funds when payments are made to employees for any
eligible leave taken throughout the year while active. However, the liability for all accrued and
vested vacation and sick leave benefits is recorded in the government-wide financial
statements. The District normally liquidates its liability for compensated absences resulting from
payouts of vested accrued leave upon termination, separation, retirement, etc. from the General
Fund and the Okeechobee Basin Special Revenue Fund.
(I) Wetland Mitigation
The District manages a program for mitigating the impact of wetland destruction through a
specialized regulatory permitting process. Permit applicants are required to remit a specified
cash payment to the District as part of the permit conditions. The permit restricts the use of the
funds received by the District to land acquisition, land restoration and long-term management of
the lands in areas managed by the District that are near the lands being developed by
permittes. The District accounts for the money received to assure it is used only for the
approved purpose in the assigned area. Funds received for land acquisition and restoration
(expendable) are placed in the Wetland Mitigation Special Revenue and Capital Projects Funds.
Funds received for long-term management (nonexpendable) are placed in the Wetland
Mitigation Permanent Fund.
(m) Fund Balances/Net Position
In the fund financial statements, governmental funds report fund classifications that comprise a
hierarchy based primarily on the extent to which the District is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. Fund balance is reported in
five components: nonspendable, restricted, committed, assigned and unassigned.
Nonspendable — Represents amounts which are (a) not in spendable form or (b) legally
or contractually required to be maintained intact. "Not in spendable form" includes items
that are not expected to be converted to cash, such as inventories and prepaid amounts,
and items such as long-term amount of loans and notes receivable. The corpus, or
principal of a permanent fund is an example of an amount that is legally or contractually
required to be maintained intact.
Restricted — Represents amounts that can be spent only for specific purposes stipulated
by (a) external resource providers such as creditors (by debt covenants), grantors,
contributors, or laws or regulations of other governments; or (b) imposed by law through
constitutional provisions or enabling legislation.
111-20
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(m) Fund Balances/Net Position (continued)
Committed — Represents amounts that can be used only for the specific purposes
determined by a formal action (resolution) of the District's Governing Board, the District's
highest level of decision making authority. Commitments may be changed or lifted only
by the Board taking the same formal action (resolution) that imposed the constraint
originally.
Assigned — Represents amounts that are constrained by the District's intent to be used
for specific purposes, but are neither restricted nor committed. Assignments are made
by the District's Executive Director or his or her designee based on Board direction as
delegated in Chapter 101 of the District's policies and procedures.
Unassigned - Represents the residual classification for the general fund. This
classification represents spendable fund balance that has not been assigned to other
funds and that has not been restricted, committed, or assigned to specific purposes
within the general fund. Unassigned fund balance may also include residual deficit
equity balances of other governmental funds, after allocating amounts to nonspendable,
restricted, and committed categories.
When both restricted and unrestricted amounts of fund balance are available for use for
expenditures incurred, it is the District's policy to use restricted amounts first and then
unrestricted amounts as they are needed. Additionally, the District would first use committed
fund balance, followed by assigned fund balance and then unassigned fund balance when
expenditures are incurred for purposes for which amounts in any of the unrestricted fund
balance classifications could be used.
Net position represents the difference between assets & deferred outflows of resources and
liabilities & deferred inflows of resources, and is reported in the three components of net
investment in capital assets, restricted, and unrestricted.
Net investment in capital assets is that portion of net position that relates to the District'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 year-end.
Net position is restricted when there are limitations imposed on use either through the enabling
legislation or through external restrictions imposed by creditors, grantors, or laws or regulations
of other governments. The types of restrictions the District has on its net position are:
Restricted for Debt Service- Represents the portion of net position which is restricted for
debt service payments or long-term borrowings.
Restricted for Wetlands Mitigation - Represents the expendable and nonexpendable
portions of net position which are restricted for land acquisition, land restoration and
long-term management of the wetlands.
Restricted for Environmental Programs - Represents the portion of net position which is
restricted for specific environmental programs through legally enforceable requirements
III-21
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(m) Fund Balances/Net Position (continued)
stipulated in legislation or through external restrictions imposed by creditors, grantors, or
laws or regulations of other governments. As of September 30, 2014, the District has
approximately$290.2 million in restricted net position through enabling legislation.
Restricted for Capital Construction — Represents the portion of net position restricted for
construction of capital facilities through legally enforceable legislative requirements.
Net position unrestricted represents amounts not included in other categories, which is generally
available for use.
(n) Deferred Inflows of Resources
In addition to liabilities, the Balance Sheet includes a separate section for Deferred Inflows of
Resources. This represents the acquisitions of net resources applicable to future periods and
will not be recognized as an inflow of resources (revenue) until the future period to which is
applies. Currently, the only item in this category is Unavailable Revenue, which will be
recognized as inflows of resources in the period that the amounts become available.
The sources of unavailable revenue are:
Governmental
Description Balances
Intergovernmental Sources:
Land Acquisition $ 620,900
Lease Revenue 2,652
Reimbursement 9,007,756
Other Sources:
Pollution Remediation 450,000
Total Unavailable Revenue $ 10,081,308
(o) Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported
amount of revenue and expenses/expenditures during the reporting period. Actual results could
differ from those estimates.
(p) Impact of Recently Issued Accounting Pronouncements
Recently Issued and Implemented Accounting Pronouncements
In March 2012, GASB issued Statement No. 66 "Technical Corrections—2012 - an amendment
of GASB Statements No. 10 and No. 62." The objective of this Statement is to improve
accounting and financial reporting for a governmental financial reporting entity by resolving
111-22
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p) Impact of Recently Issued Accounting Pronouncements(continued)
conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54,
"Fund Balance Reporting and Governmental Fund Type Definitions" and Statement No. 62
"Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30,
1989 FASB and AICPA Pronouncements". The District implemented this Statement during the
fiscal year ended September 30, 2014. The implementation had no effect on the District
financial statements.
In June 2012, GASB issued Statement No. 67 "Financial Reporting for Pension Plans - an
amendment of GASB Statement No. 25." This Statement replaces the requirements of
Statement No. 25, "Financial Reporting for Defined Benefit Pension Plans and Note Disclosures
for Defined Contribution Plans", and Statement No. 50, "Pension Disclosures", as they relate to
plans that are administered through trusts or equivalent arrangements that meet certain criteria.
For defined benefit pension plans, this statement establishes standards of financial reporting for
separately issued financial reports and specifies the required approach to measuring the
pension liability of employers and nonemployer contributing entities for benefits provided
through the pension plan, about which information is required to be presented. The District
implemented this Statement during the fiscal year ended September 30, 2014. The
implementation had no effect on the District financial statements.
In January 2013, GASB issued Statement No. 69 "Government Combinations and Disposals of
Government Operations." This Statement requires disclosures to be made about government
combinations and disposals of government operations to enable financial statement users to
evaluate the nature and financial effects of.those transactions. The provisions of this Statement
are effective for government combinations and disposals of government operations occurring in
financial reporting periods beginning after December 15, 2013, and should be applied on a
prospective basis. The District early implemented this Statement during the fiscal year ended
September 30, 2014. The implementation had no effect on the District financial statements.
In April, 2013, GASB issued Statement No. 70 "Accounting and Financial Reporting for
Nonexchange Financial Guarantees." This Statement requires a government that extends a
nonexchange financial guarantee to recognize a liability when qualitative factors and historical
data, if any, indicate that it is more likely than not that the government will be required to make a
payment on the guarantee. This Statement requires a government that has issued an obligation
guaranteed in a nonexchange transaction to recognize revenue to the extent of the reduction in
its guaranteed liabilities. This Statement also requires a government that is required to repay a
guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed
obligation to continue to recognize a liability until legally released as an obligor. This Statement
specifies the information required to be disclosed by governments that extend nonexchange
financial guarantees. In addition, this Statement requires new information to be disclosed by
governments that receive nonexchange financial guarantees. The District implemented this
Statement during the fiscal year ended September 30, 2014. The implementation had no effect
on the District financial statements.
111-23
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
(p) Impact of Recently Issued Accounting Pronouncements (continued)
Recently Issued Accounting Pronouncements, Not Yet Implemented
The District has not yet determined the impact of the following GASB pronouncements which
have been issued but are not yet effective and have not been implemented.
In June 2012, GASB issued Statement No. 68 "Accounting and Financial Reporting for
Pensions- an amendment of GASB Statement No. 27." The scope of this Statement addresses
accounting and financial reporting for pensions that are provided to the employees of state and
local governmental employers through pension plans that are administered through trusts that
meet certain characteristics. This statement establishes standards for measuring and
recognizing liabilities, deferred outflows/inflows of resources, and expense/expenditures. For
defined benefit pensions, this Statement identifies the methods and assumptions that should be
used to project benefit payments, discount projected benefit payments to their actuarial present
value, and attribute that present value to periods of employee service. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2014. The
District is required to implement this Statement in its fiscal year beginning October 1, 2014. The
adoption of this Statement will require the District to record a liability for the unfunded portion of
its cost sharing plan. The unfunded portion has not yet been determined.
In November, 2013, GASB issued Statement No. 71 "Pension Transition for Contributions Made
Subsequent to the Measurement Date — An Amendment of GASB Statement No. 68." This
Statement requires a state or local government employer to recognize a net pension liability
measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If
a state or local government employer or nonemployer contributing entity makes a contribution to
a defined benefit pension plan between the measurement date of the reported net pension
liability and the end of the government's reporting period, Statement 68 requires that the
government recognize its contribution as a deferred outflow of resources. In addition, the
Statement requires recognition of deferred outflows of resources and deferred inflows of
resources for changes in the net pension liability of a state or local government employer or
nonemployer contributing entity that arise from other types of events. The provisions of this
Statement are required to be applied simultaneously with the provisions of GASB Statement No.
68. The District is required to implement this Statement in its fiscal year beginning October 1,
2014.
In February 2015, GASB issued Statement No. 72 "Fair Value Measurement and Application".
This Statement provides guidance for determining a fair value measurement for financial
reporting purposes and also provides guidance for applying fair value to certain investments and
disclosures related to all fair value measurements. The provisions of this Statement are
effective for financial statements for periods beginning after June 15, 2015. The District is
required to implement this Statement in its fiscal year beginning October 1, 2015.
111-24
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(3) CASH AND INVESTMENTS
Statement of Policy
The purpose of the District's investment policy is to set forth the investment objectives and
parameters for the management of public funds of the District. The policy is designed to ensure
the prudent management of public funds, the availability of operating and capital funds when
needed and investment returns competitive with comparable funds and financial market indices.
The District's policy is written in accordance with Section 218.415, Florida Statutes, which
applies to funds under the control of local governments and special districts. The policy and any
subsequent revisions are adopted by the District's Governing Board and apply to funds in
excess of those required to meet current expenditures. In March 2012 the Governing Board
approved changes to a majority of District policies to update references to positions and
departments to ensure they were aligned with the District's new organization structure. No
substantive changes were made to the policies during that effort. The most recent substantive
revisions to the investment policy were approved by the Governing Board in June 2008.
The District's investment policy authorizes investments in: 1) the Florida Local Government
Surplus Funds Trust Fund (which includes Florida Prime, Pool B and the Florida Local
Government Investment Trust), 2) United States government securities unconditionally
guaranteed by the full faith and credit of the United States government, 3) United States
government agencies backed by the full faith and credit of the United States government, 4)
United States government-sponsored agencies, 5) interest bearing time deposit or savings
accounts of Florida Banks and Savings and Loan Associations approved under Chapter 280,
Florida Statutes, 6) commercial paper rated Prime 1 by Moody's, Al by Standard and Poor's or
F-1 by Fitch, 7) corporate notes rated at a minimum Aa by Moody's, AA by Standard and Poor's
or AA by Fitch, 8) Bankers Acceptances rated at a minimum P-1 by Moody's and A-1 by
Standard and Poor's, 9) state and/or local government taxable and/or tax exempt debt, general
obligation and/or revenue bonds, rated at least Aa by Moody's and M by Standard and Poor's
or AA by Fitch for long term debt or rated at least MIG-1 by Moody's and SP-1 by Standard and
Poor's for short-term debt, 10) money market mutual funds rated AAAm or AAAM-G or better by
Standard & Poor's, or the equivalent by another rating agency, 11) master repurchase
agreements collateralized by United States government, government agencies and federal
instrumentalities, 12) hedging instruments, 13) reverse repurchase agreements and 14) agency
mortgage backed securities or non-agency mortgage backed securities that maintain a AAA
rating by a nationally recognized statistical rating agency.
As of September 30, 2014, the District had placed approximately 8% of its investments in U.S.
government agencies backed by the full faith and credit of the United States government, 62%
in U.S. government-sponsored agencies, 3% in Corporate Bonds, 11% in Florida Prime and the
Local Government Investment Pool and 16% in the Florida Local Government Investment Trust.
Florida Prime is an investment pool available for investing temporarily idle cash by Florida
governments and is managed by the State Board of Administration (the "SBA"). According to
the SBA, Florida Prime meets the criteria to be considered as "2a-7 like", as defined by GASB
Statement No. 31. Accordingly, it has been reported at the same value as the pool shares
allocated to the District. Florida Prime maintains an AAAm rating by Standard and Poor's
Ratings Services.
III-25
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(3) CASH AND INVESTMENTS(continued)
Florida Prime is governed by the rules of Chapter 19-7 of the Florida Administrative Code.
These rules provide guidance and establish the general operating procedures for the
administration of the Funds. Additionally, the Office of the Auditor General performs the
operational audit of the activities and investments of the SBA.
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Investments are made based upon prevailing market conditions at the time of the
transaction. While the overall intent is to hold securities to maturity, the ongoing management
of the portfolio allows for actions designed to meet cash needs of the District and attempts to
maximize investment yield while minimizing losses. Investments can be sold prior to maturity to
improve yield, modify the target duration or improve the overall credit position of the portfolio.
The District uses a duration method to construct a portfolio of bonds to fund its future cash
needs. For reporting purposes, it selects the effective duration to disclose the portfolio's
exposure to changes in interest rates. Through its investment policy, the District manages its
exposure to fair value losses arising from interest rate increases by limiting the effective
duration of its investment portfolio, including cash balances, to less than three (3)years.
The District maintains an allocation of its investments in U.S. Agency Obligation securities which
are callable by the issuer. These bonds are subject to the risk of being called prior to maturity.
The District invests in Mortgage Backed Securities, including Collateralized Mortgage
Obligations (CMO's) in part to maximize yield and as a protection against a rise in interest rates.
These securities are based on cash flows from payments on underlying mortgages; therefore,
they are sensitive to prepayments by mortgagees, which may result from a decline in interest
rates. An increase in interest rates may increase the average maturity of these investments.
The District currently limits its exposure to all mortgage investments to 30% of the total portfolio
balance at the time of purchase.
As of September 30, 2014 the District had the following investments in its pooled portfolio:
Effecti.e
In estment Type Fair Value Duration (in yrs)
U.S. Agency Obligations $ 69,966,000 2.43
Investments in Mortgage Backed Securities 153,897,030 4.02
Corporate Bonds 9,982,000 0.71
Florida Prime 33,720,246 0.11
Florida Local Govemment Investment Trust 52,468,844 1.82
Total Fair Value $ 320,034,120
Portfolio Effective Duration 2.80
III-26
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(3) CASH AND INVESTMENTS(continued)
Credit Risk
Credit risk is the risk than an issuer will not fulfill its obligations. For liquidity purposes, the
District invests in Florida Prime, which is managed in accordance with State statutes. Florida
Prime is rated AAAm by Standard & Poor's, and investment into the fund by local governments
is consistent with SEC rule 2a-7.
All of the District's investments in agency securities for fiscal year 2014 were rated AA+ by
Standard and Poor's, AAA by Fitch ratings, and Aaa by Moody's Investor Services. In addition,
all of the District's investments in Mortgage Backed Securities were rated AAA by at least two of
the three listed rating services. This applies to the direct agency obligations as well as the
investment into non-agency mortgages and CMO's.
Credit Quality Distribution for Securities with Credit Exposure
Investment Type Credit Rating Fair Value
Florida Prime AAAm $ 33,720,246
Fannie Mae—U.S. Agency Obligations AAA 39,895,000
Fannie Mae—Mortgage Backed Securities AAA 70,957,538
Freddie Mac—Mortgage Backed Securities AAA 58,478,092
Federal Home Loan Bank—U.S. Agency Obligations AAA 30,071,000
Ginnie Mae-Mortgage Backed Securities AAA 24,461,400
General Electric Capital Corp. AA+ 9,982,000
Florida Local Government Investment Trust AAAf 52,468,844
$ 320,034,120
Custodial Credit Risk- Deposits
All of the District's cash deposits are held in accounts at depository institutions which are
recognized as State of Florida Qualified Public Depositories in accordance with state statutes
and the District's investment policy. All bank balances are covered by federal deposit insurance
and the bank's participation in the Florida Security for Public Deposits Act. The balance held
with these institutions at September 30, 2014 is $157,950,861.
A significant cash deposit of the District at September 30, 2014 is the balance of proceeds from
the issuance of Certificates of Participation (COPS) in fiscal year 2007. The "Cash and
Investments Held by Trustee" balance consists of $36,709,223 in COPS proceeds which are
invested in FLGIT and held in trust by a third party financial institution on behalf of the District,
and $23,535,975 representing debt service on the COPS due October 1, 2014.
Custodial Credit Risk—Investments
The District's investment policy requires that all securities be held with a third-party custodian in
a separate account which is registered as an asset of the District. The custodian acts as the
safekeeper of the District's investment securities. No withdrawal of securities, in whole or in
part, is made from safekeeping without written authorization of designated District staff.
III-27
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(3) CASH AND INVESTMENTS (continued)
Concentration of Credit Risk
The District's policy authorizes investment allocation limits on security types, issuers, and
maturity limitations. However, the Executive Director has the option to modify investment
percentages from time-to-time based on market conditions, risk and diversification investment
strategies. These actions are delegated to the District Treasurer to implement as needed.
Percentage Allocation by Issuer as of September 30,2014
Issuer Percent of Total
Florida Prime 10.54%
Fannie Mae 34.64%
Freddie Mac 18.27%
Federal Home Loan Bank 9.40%
Ginnie Mae 7.64%
General Electric Capital Corp. 3.12%
Florida Local Government Investment Trust 16.39%
Cash and investments as of September 30, 2014 are comprised of the following:
Cash Deposits:
Money Market Accounts $ 38,111,636
Demand Deposit Accounts 119,833,475
Petty Cash 5,750
Total Cash Deposits 157,950,861
Cash and Investments Held by Trustee: 60,245,198
Investments:
U.S. Agency Obligations 69,966,000
Investments in Mortgage Backed Securities 153,897,030
Corporate Bonds 9,982,000
Florida Prime 33,720,246
Florida Local Govemment Investment Trust 52,468,844
Total Investments 320,034,120
Total Cash and Investments $ 538,230,179
III-28
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(4)ACCOUNTS RECEIVABLE
Accounts receivable at September 30, 2014 consist of the following:
Okeechobee Everglades Okeechobee Everglades Non Major/
General Basin SR Trust SR Basin CP Trust CP Internal
Fund Fund Fund Fund Fund Service Funds Total
Leases $ 533 $ 503,349 $ - $ - $ - $ 140,692 $ 644,574
Interest 108,658 113,072 14,590 30,179 112,440 196,094 575,033
Other 4,216 3,240 - - - 22,134 29,590
$ 113,407 $ 619,661 $ 14,590 $ 30,179 $ 112,440 $ 358,920 $1,249,197
(5) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables as of September 30, 2014 are as follows:
Interfund Interfund
Receivable Payable
General Fund $ - $ 368,279
Okeechobee Basin Fund 4,404,227 301,482
Everglades Rest. Trust SR Fund - 91,655
Okeechobee Basin CP Fund - -
Everglades Trust CP Fund 4,395,155 -
Save Our Everglades Trust CP Fund - 4,016,664
COPS Everglades Forever Act CP Fund - 4,395,155
Other Governmental Funds - 406,530
Internal Service Funds 782,722 2,339
$ 9,582,104 $ 9,582,104
Interfund balances at year end represent temporary loans to cover negative cash balances and
amounts due to internal service funds for amounts due at year end.
Interfund transfers during the year are as follows:
To:
Save Our COPS
Okeechobee Everglades Okeechobee Everglades Everglades Everglades Other
General Basin SR Trust SR Basin CP Trust CP Trust CP Forever Act CP Governmental
From: Fund Fund Fund Fund Fund Fund Fund Funds Totals
General Fund $ - $ - $ - $ - $ - $ 1,011,140 $ - $38,589,216 $39,600,356
Okee.Basin SR Fund - - - 28,613,627 - 206,168 - - 28,819,795
Everglades Trust SR Fund - - - - 21,856,958 - - 2,200,000 24,056,958
Okee.Basin CP Fund - 10,704 - - - - - - 10,704
Everglades Trust CP Fund - - 1,138,000 - - - - - 1,138,000
CORP CP Fund - - - - - - - 100,000 100,000
Other Governmental Funds 25,360,610 163,157 - - - - 15,928,773 9,015,514 50,468,054
$25,360,610 $ 173,861 $ 1,138,000 $28,613,627 $21,856,958 $ 1,217,308 $15,928,773 $ 49,904,730 $ 144,193,867
III-29
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(5) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS(continued)
Transfers into the General Fund from the CERP Capital Projects Fund reflect a District decision
to phase out the CERP Capital Projects Fund, resulting in the movement of a portion of existing
fund balance over to the General Fund for future appropriations. Transfers into the
Okeechobee Basin Capital Projects Fund from the Okeechobee Basin Special Revenue Fund
reflect funding support related to capital outlay expenditures recorded in that fund. Similarly,
transfers into the Everglades Trust Capital Projects Fund from the Everglades Trust Special
Revenue Fund reflect support for capital outlay expenditures incurred in the capital fund.
Transfers into the COPS Everglades Forever Act CP Fund from the COPS-CERP CP Fund
were to fund Al Flow Equalization Basin (FEB) expenditures accounted for in that fund. The
majority of the remaining transfers represent funding for District-wide capital projects and
funding between special revenue funds and their related capital projects fund as required.
(6) OPERATING LEASE RENTAL REVENUES
Property on Operating Leases and Property Held for Lease
The District purchases land for environmental restoration projects. Often there are agricultural
activities occurring on parts of the land at the time of purchase. If the land is not needed for a
project immediately, the District allows these activities to continue as it results in lower land
maintenance costs. In addition, rent is charged for the use of the land for farming until such
time it is needed for project purposes. The District investment in land on which operating leases
exist is$747.9 million as of September 30, 2014.
Revenues under Operating Leases
The following is a schedule by year of minimum future revenues on noncancelable operating
leases, including contingent revenues which may be received under certain leases of land on
the basis of use in excess of stipulated minimums. For fiscal year 2014, contingent revenues
were $-0-.
Year Ending September 30:
2015 $ 2,896,470
2016 2,766,511
2017 2,587,172
2018 2,244,409
2019 1,623,380
2020- 2024 914,799
Total minimum future revenues $13,032,741
111-30
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(7) PROPERTY TAXES
The District is permitted by Florida Statutes to levy taxes up to .800 mills per $1,000 of
assessed valuation. The rate levied for a majority of the District for fiscal year 2014 was .4110
mills. Property taxes are levied each November 1 on the assessed value listed as of the prior
January 1 for real and personal property located within the District. The assessed value at
January 1, 2013, upon which the fiscal year 2014 levy was based, was approximately $694.9
billion.
A four percent discount is allowed if the taxes are paid in November, with the discount declining
by one percentage point each month thereafter. Taxes become delinquent April 1 of each year.
Delinquent property tax certificates are sold to the public beginning June 1, at which time a lien
attaches to the property. By fiscal year end, virtually all property taxes are collected either
directly or through tax certificate sales. Property tax revenues are recorded by the District
based on the amount of receipts reported by the county tax collectors. Property taxes
receivable from the county tax collectors at September 30, 2014, is $2,149,511 and is included
in tax revenues.
(8) INTERGOVERNMENTAL TRANSACTIONS
Amounts due from other governments at September 30, 2014 and intergovernmental revenues
for 2014 consist of the following:
Due From Intergovernmental
Other Governments Revenues
U.S. Army Corps of Engineers $ 837,324 $ 2,150,630
U.S. Department of Homeland Security 2,652 3,290
U.S. Department of Agriculture& Consumer Affairs 65,497 1,128,015
U.S. Fish and Wildlife Senece 26,937 261,515
Florida Department of Environmental Protection 11,605,131 71,106,595
Florida Department of Emerency Management 5,253,623
Florida Department of Motor Vehicles - 313,127
Florida Department of Transportation 1,207 4,501,781
Florida Fish and Wildlife Conservation Commission 373,137 5,830,173
Collier County 5,344
Miami Dade County 14,970 14,917
Southwest Florida Water Management District 14,734 136,648
St. Johns River Water Management District - 165,121
Ad Valorem Taxes 641,855 - *
Property Appraiser/Tax Collector Fee Credits 1,507,656 - *
Total $ 20,350,067 $ 85,611,812
* On the Statement of Revenues,Expenditures and Changes in Fund Balances,Ad Valorem Taxes are
reported as Ad Valorem Property Taxes and the PropertyAppraiser/Tax Collector Fee Credits are netted
against the original expenditure in the respective program.
III-31
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(9) CAPITAL ASSETS ACTIVITY
Balance at Balance at
October 1, Adjustments/ September 30,
2013 Additions Retirements Reclassifications 2014
Capital Assets Not Being Depreciated:
Land $2,535,347,849 $ 46,979,836 $ (41,795) $ (17,325,960) $2,564,959,930
Easements(Intangibles) 52,415,282 649,454 (147) 17,325,960 70,390,549
Construction in Process 530,728,881 87,010,608 (3,339) (170,316,601) 447,419,549
Canals and Levees 656,383,787 300,208 - 45,426,113 702,110,108
3,774,875,799 134,940,106 (45,281) (124,890,488) 3,784,880,136
Capital Assets Being Depreciated:
Buildings 116,824,013 436,550 (454,895) 6,137,056 122,942,724
Intangibles 40,795,055 33,767 - 309,932 41,138,754
Equipment 136,270,828 3,547,169 (4,973,127) 1,659,092 136,503,962
Improvements 29,145,032 - (12,497) 868,249 30,000,784
Water Control Structures 884,540,310 1,610,808 (270,773) 115,916,159 1,001,796,504
1,207,575,238 5,628,294 (5,711,292) 124,890,488 1,332,382,728
Less Accumulated Depreciation:
Buildings (35,125,506) (3,662,560) 335,707 12,679 (38,439,680)
Intangibles (27,305,829) (5,215,585) - - (32,521,414)
Equipment (92,908,098) (7,038,825) 4,242,563 (163,534) (95,867,894)
Improvements (13,800,441) (1,221,674) 12,019 - (15,010,096)
Water Control Structures (170,115,218) (18,403,263) 37,300 150,855 (188,330,326)
(339,255,092) (35,541,907) 4,627,589 - (370,169,410)
Capital Assets Being Depreciated,Net
868,320,146 (29,913,613) (1,083,703) 124,890,488 962,213,318
Capital Assets, Net $4,643,195,945 $ 105,026,493 $ (1,128,984) $ - $4,747,093,454
Depreciation expense was charged to the following programs during the fiscal year:
Mission Support $ 7,181,459
Operations and Maintenance 14,795,875
Restoration 13,333,745
Water Supply 225,717
35,536,796
Depreciation of capital assets held in internal service funds are
charged to the various programs based on the asset function 5,111
Total Depreciation Expense $ 35,541,907
III-32
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(10) LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the fiscal year ended
September 30, 2014:
Balance at Retirements Balance at Amounts
October 1, And September 30, Due Within
2013 Additions Adjustments 2014 One Year
Land Acquisition Bonds $ 19,225,000 $ - $ (6,120,000) $ 13,105,000 $ 6,400,000
Bond Premium/Discount 108,395 - (74,556) 33,839 -
COPS 489,610,000 - (11,060,000) 478,550,000 11,610,000
COPS Premium/Discount 14,622,927 - (1,412,500) 13,210,427 -
Compensated Absences 15,836,000 8,430,000 (9,877,400) 14,388,600 10,539,000
Other Post Emp Benefits 24,039,368 2,283,592 - 26,322,960 -
Self Insurance Claims 6,343,956 26,204,480 (27,030,518) 5,517,918 2,564,240
$ 569,785,646 $ 36,918,072 $ (55,574,974) $ 551,128,744 $ 31,113,240
Special Obligation Land Acquisition Bonds are issued by the District to provide funds for the
acquisition of environmentally sensitive lands. Principal and interest on the Land Acquisition
Bonds are secured by a lien on documentary stamp excise taxes collected statewide by the
State of Florida and allocated to the State's five water management districts through the Water
Management Lands Trust Fund (WMLTF). For the current fiscal year, principal and interest
payments and total revenue recognized by the District were $6,888,598 and $7,027,325,
respectively. The District accounts for related debt service in the Save Our Rivers SR Fund.
Summary of the status of the District's bonded debt as of September 30, 2014 is shown below:
Original Fiscal Year Interest Remaining
Issue Amount Maturity Rates Balance
2002 Refunding $ 23,810,000 2015-2016 3.875-4.000% $ 4,855,000
2003 Refunding 34,550,000 2015-2016 4.100-5.250% 8,250,000
$ 58,360,000 $ 13,105,000
Fiscal year requirements to amortize bonded debt as of September 30, 2014 are as follows:
Principal Interest Total
2015 $ 6,400,000 $ 474,200 $ 6,874,200
2016 6,705,000 160,538 6,865,538
$ 13,105,000 $ 634,738 $ 13,739,738
An interagency agreement between the District and Florida Department of Environmental
Protection (FDEP) requires FDEP to set aside and escrow from the first monies allocable to the
District in the WMLTF, sufficient monies for the payment of principal and interest on the land
acquisition bonds becoming due in each subsequent year. As of the District's financial
statement date, FDEP had reserved an amount of$7,032,125 for such purpose.
III-33
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(10) LONG-TERM LIABILITIES (continued)
In fiscal year 2007, the District issued Certificates of Participation (COPS), Series 2006, in order
to provide funds for the construction of accelerated projects in furtherance of restoration of the
Everglades. COPS are statutorily-authorized tax-exempt certificates evidencing undivided
proportionate interests of the owners thereof in basic lease payments to be made by the
Governing Board of the District, pursuant to a master lease purchase agreement by and
between the District and the South Florida Water Management District Leasing Corporation (the
"Corporation"), a not-for-profit entity (see Note (2)(a) on page III-14). The COPS are secured by
and payable from the Trust Estate established for the Series 2006 Certificates (the "Trust
Estate") pursuant to the Trust Agreement and any amounts payable under the Financial
Guaranty Insurance Policy. The Trust Estate consists of all estate, right, title and interest of the
Trustee in and to the Basic Lease Payments under the Series 2006 Lease, and all amounts held
in the funds and accounts under the Trust Agreement in accordance with the provisions of the
Master Lease and the Trust Agreement, including investment earnings thereon, and any and all
monies received by the Trustee pursuant to the Series 2006 Lease and the Trust Agreement
which are not required to be remitted to the Governing Board or the Corporation pursuant to the
Master Lease or the Trust Agreement. Lease payments are funded from ad valorem revenues.
Total COPS issued amounted to $546,120,000, having interest rates ranging from 3.5% to
5.0%. The District accounts for debt service transactions relative to COPS in the Everglades
Trust Fund and the Comprehensive Everglades Restoration Plan Fund.
Fiscal year requirements to amortize the COPS as of September 30, 2014 are as follows:
Principal Interest Total
2015 $ 11,610,000 $ 23,572,247 $ 35,182,247
2016 12,165,000 23,000,372 35,165,372
2017 12,750,000 22,392,425 35,142,425
2018 13,385,000 21,742,025 35,127,025
2019 14,055,000 21,056,025 35,111,025
2020-2024 81,485,000 93,792,625 175,277,625
2025-2029 103,915,000 70,792,375 174,707,375
2030-2034 132,620,000 41,365,500 173,985,500
2035-2037 96,565,000 7,399,375 103,964,375
$478,550,000 $325,112,969 $803,662,969
The liability for compensated absences is generally liquidated by the General Fund and the
Okeechobee Basin SR Fund and the liability for other post-employment benefits is generally
liquidated from the General Fund.
111-34
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(11) FUND BALANCE REPORTING
The following is the governmental fund balances in detail as of September 30, 2014:
Okeechobee Everglades Okeechobee
General Basin Trust Basin
Fund SR Fund SR Fund CP Fund
Nonspendable:
Inventory $ - $ 5,570 $ - $ -
Permanent fund principal - - _ -
Restricted for:
Dispersed storage projects - 11,435 - -
Source control projects - 75 75 -
External risk management - 8,433 -
Okeechobee Basin operations _ 82,072 - -
Water protection,ecosystem mgmt,and restoration projects - _ -
-
Water quality enhancement projects _ _ -
-
Caloosahatchee Basin storage treatment _ - - 1,171
Local government agreements _ _ -
-
Big Cypress Basin operations _ - -
Debt service _ _ -
Indian River Lagoon surface water environmental enhancement - - - -
Ops. &maint.of Everglades Stormwater Treatment Areas - - - -
Everglades conservation and natural resource protection - 168 - 8,212
Lake Okeechobee restoration - -
- -
Big Cypress Basin capital projects _ - - -
Acquisition, restoration or mgmt of environmentally sensitive lands - - - -
Florida Bay restoration _ - - -
Wetland creation, restoration and management _ _ - -
Construction&ops. of facilities-Everglades restoration&protectior - - - -
Restoration strategies projects - 21,451 -
Land management activities - - - -
Aquatic plant control - -
Workforce reduction plan - 103 5 -
Other capital projects - - - 7,470
Commited for:
Caloosahatchee Basin storage treatment - - - -
Source control projects 325 - - -
External risk management 7,180 - - -
Facilities lease 201 -
Research,data collection,analysis&monitoring 40 - - -
Workforce reduction plan 60 - - -
Restoration strategies projects 4,691 - - -
- -
Capital Projects 2,422 -
Assigned to:
District operations 42,478 - - -
- -
Other capital projects - -
Everglades restoration - - - -
Wetland creation, restoration and management - _ - -
Unassigned: 6,023 - (11,647) -
63,420 107,857 9,883 16,853
111-35
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(11) FUND BALANCE REPORTING (continued)
COPS
Everglades Save Our Everglades Other Total
Trust Everglades Forever Governmental Governmental
CP Fund CP Fund CP Fund Funds Funds
Nonspendable:
Inventory $ - $ - $ - $ 148 $ 5,718
Permanent fund principal - - - 14,967 14,967
Restricted for:
Dispersed storage projects - - - - 11,435
Source control projects - - - - 150
External risk management _ _ - - 8,433
Okeechobee Basin operations _ - - 896 82,968
Water protection,ecosystem mgmt,and restoration projects 4,188 - - 1,975 6,163
Water quality enhancement projects _ - -
-
Caloosahatchee Basin storage treatment
-
_ - 1,171
Local government agreements _ - -
-
Big Cypress Basin operations _ - -
-
Debt service 13,016 - - 17,234 30,250
Indian River Lagoon surface water environmental enhancement - - - 155 155
Ops.&maint.of Everglades Stormwater Treatment Areas - - - - -
Everglades conservation and natural resource protection - _ - 642 9,022
Lake Okeechobee restoration - - - 2,224 2,224
Big Cypress Basin capital projects - - - 19,511 19,511
Acquisition,restoration or mgmt of environmentally sensitive lands - - - 48,645 48,645
Florida Bay restoration - - - 3,468 3,468
Wetland creation,restoration and management - - - 46,280 46,280
Construction&ops.of facilities-Everglades restoration&protection - - 10,635 13,977 24,613
Restoration strategies projects 61,480 - - - 82,931
Land management activities _ _ - 7,349 7,349
Aquatic plant control - - - 32 32
Workforce reduction plan _ _ - - 108
Other capital projects 18,079 - - 2,225 27,773
Commited for:
Caloosahatchee Basin storage treatment - _ - - -
Source control projects - - - - 325
External risk management - - - - 7,180
Facilities lease - - - _ Y01
Research,data collection,analysis&monitoring - - - - 40
Workforce reduction plan - - - - 60
Restoration strategies projects - - - - 4,691
Capital Projects _ _ _ - 2,422
Assigned to:
District operations - - - 13 42,490
Other capital projects - - - 18,595 18,595
Everglades restoration - - - 4,316 4,316
Wetland creation,restoration and management - - - - -
Unassigned: - (2,364) - (9,936) (17,925)
96,763 (2,364) 10,635 192,715 495,762
111-36
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(12) DEFICIT FUND BALANCES
At September 30, 2014, the following fund has a deficit fund balance:
Save Our Everglades Capital Project Fund $ 2,363,914
External Grants Fund 161,561
The deficit in the External Grant Fund is expected to be funded by future reimbursement from
the US Department of Agriculture and Florida Department of Environmental Protection and the
deficit in the Save Our Everglades Capital Project Fund will be funded by a pending
reimbursement from Florida Department of Environmental Protection.
(13) OPERATING LEASES
The District is committed under various operating leases for building, office space, vehicles,
office equipment and data processing equipment. The majority of the operating leases contain
renewal options that the District may exercise. In most cases, the District expects that in the
normal course of business the leases will be renewed or replaced with other leases. Lease
expenditures for the year ended September 30, 2014 amounted to approximately $1.3 million.
Future minimum lease payments for these leases are as follows:
Year Ending September 30:
2015 $ 900,857
2016 527,996
2017 261,512
2018 172,932
$ 1,863,297
(14) DEFINED BENEFIT PENSION PLAN
Plan Description
The District contributes to the Florida Retirement System (the "System"), a cost-sharing
multiple-employer defined benefit pension plan administered by the State of Florida Division of
Retirement. The System provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. The Florida Legislature
established the System under Chapter 121, Florida Statutes, and has sole authority to amend
benefit provisions. The System issues a publicly available annual financial report that includes
financial statements and required supplementary information. That report may be obtained by
writing to the Florida Department of Management Services, Division of Retirement, P.O. Box
9000, Tallahassee, Florida 32315-9000.
111-37
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(14) DEFINED BENEFIT PENSION PLAN(continued)
Funding Policy
During fiscal year 2011, the Florida Legislature passed Senate Bill 2100, which was signed into
law by the Governor and became effective July 1, 2011. The bill requires all FRS Investment
Plan and Pension Plan members, excluding those in the Deferred Retirement Option Program
(DROP), to contribute 3%towards their retirement benefits. The District is required to contribute
an actuarially determined rate, which is fixed by law and varies based on employee class. At
fiscal year end the District's contribution rates were 7.37%, 21.14% and 12.284% of annual
covered payroll for regular class, senior management class, and DROP class employees,
respectively. The contributions of the District are established and may be amended by the State
Legislature. The District's contributions to the System for the past three fiscal years, which is
equal to the required contributions for each year, are as follows:
Year Ending September 30:
2014 $ 10,752,615
2013 9,161,494
2012 8,086,080
(15) OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
District retirees and their eligible dependents may continue participation in the District health
insurance program as required by Florida Statutes, Section 112.0801. Because the cost to the
retirees cannot be greater than that to active employees for the same coverage, an implicit
subsidy is being provided to retirees.
In January 2007, the District Governing Board approved a direct subsidy program to aid retirees
in retaining quality healthcare coverage. The subsidy is a discount of the total premium
contribution equal to 2% for each year of creditable service under the Florida Retirement
System to a maximum of 30 years of creditable service or 60%. Effective July 2, 2012, the
direct subsidy program was closed to new participants. Eligibility requirements include a
minimum six years of consecutive District service immediately preceding retirement and be age
62 or older, or have a minimum of 25 years of FRS service, regardless of age. In order to
maintain eligibility for the 2.0% retiree subsidy program, current employees were required to
declare their intent to retire by July 2, 2012, and must have separated from District employment
by December 12, 2012.
The plan, a single employer defined benefit plan, is administered by the District. No formal trust
is currently in place and benefits are provided through the annual budget appropriation. The
provisions of the direct subsidy were established and may be amended by resolution of the
District Governing Board. There is no separately issued financial report for the plan.
As of the July 2013 valuation date, the plan covered 1,546 active participants and 372 retirees.
111-38
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(15) OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Funding Policy
The District contributes 2% for each year of creditable service up to a maximum of 30 years or
60% of the total premium for retirees currently in the program. All other costs are paid by the
retirees. The plan is financed on a pay-as-you-go basis. The liability for other post-employment
benefits is generally liquidated from the General Fund.
Annual OPEB Costs and Net OPEB Obligation
For the fiscal year ended September 30, 2014, the District's annual OPEB cost of $4,770,003
was equal to the annual required contribution (ARC) for the fiscal year, one year's interest on
the net OPEB obligation, and an adjustment equal to the discounted present value of the
balance of the net OPEB obligation at the beginning of the year. The District's annual OPEB
cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation
for fiscal years 2014, 2013, and 2012 are as follows:
2014 2013 2012
Normal Cost(Service cost for one year) $ 1,857,787 $ 2,007,312 $ 2,015,202
Amortization of Unfunded Actuarial Accrued Liability 2,948,472 2,701,206 2,749,733
Interest on Normal Cost and Amortization 47,359 47,538 48,107
Annual Required Contribution(ARC) 4,853,618 4,756,056 4,813,042
Interest on NOO 961,575 865,917 764,305
Adjustment to ARC (1,045,190) (854,576) (754,295)
Annual OPEB Cost(Expense) 4,770,003 4,767,397 4,823,052
Employer Contributions Made (2,486,411) (1,847,965) (2,344,703)
Increase(decrease)in NOO 2,283,592 2,919,432 2,478,349
Net OPEB Obligation (NOO)at beginning of year 24,039,368 21,119,936 18,641,587
Estimated NO0 at end of year 26,322,960 24,039,368 21,119,936
Percentage of annual OPEB Cost Contributed 52.13% 38.76% 48.61%
III-39
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(15) OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Funded Status and Funding Progress
The funded status of the plan as of September 30, 2014 was as follows:
Actuarial Accrued Liability(AAL) $66,497,952
Actuarial Value of Plan Assets —
Unfunded Actuarial Accrued Liability(UAAL) 66,497,952
Funded Ratio (Actuarial Value of Plan Assets/AAL) -
Covered Payroll (Active Plan Members) 103,092,344
UAAL as a Percentage of Covered Payroll 64.50%
Actuarial valuations of an OPEB 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 continued revision as actual results are compared to past expectations
and new estimates are made about the future. 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
pattern of sharing of benefit costs between 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.
In the July 1, 2013 actuarial valuation, as updated, the individual entry age actuarial cost
method was used. The actuarial assumptions included a 4.0% investment rate of return, a 3.0%
rate of general price inflation, and an annual healthcare cost trend rate of 8.5% in 2014,
followed by 8.0% and 7.5% trend rates the next two years, respectively, followed by a trending
down to an ultimate rate of 5.26% per year after 12 years, or 2029. The actuarial value of
assets was not determined as the District has not advance funded its obligation. The Plan's
unfunded actuarial accrued liability is being amortized as a level percent of payroll over a 23-
year period with a closed amortization method. The assumed rate of payroll growth is 4.0% per
year.
The required schedule of funding progress, as shown in the Notes to the Required
Supplementary Information (see page IV-5), presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability for benefits. The projection of benefits for financial reporting purposes
does not explicitly incorporate the potential effects of legal or contractual funding limitations.
(16) INSURANCE ACTIVITIES
The District is exposed to the various risks of loss related to torts, theft of, damage to and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. In
1976 the District established a self-insurance program for its workers' compensation exposure
and in 1986 the District established a self-insurance program for automobile and general liability
111-40
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(16) INSURANCE ACTIVITIES(continued)
claims. These self-insured claims are administered by a third party and are accounted for in the
Self Insurance Fund (an internal service fund).
The District is totally self-insured for workers' compensation claims and the District's financial
exposure for automobile and general liability is limited to $200,000 per person and $300,000 per
occurrence pursuant to Section 768.28, Florida Statutes. Expenditures relating to insurance are
charged to other funds based on a cost allocation study performed by Management. These
expenditures include actuarial estimates utilizing the Casualty Actuarial Society Statement of
Principles Regarding Property and Casualty Loss and Loss Adjustment Expense. The actuarial
calculations are utilized to determine the amount needed for losses incurred but not reported
(IBNR) at year end. The District transfers its risk for personal and real property through the
purchase of an insurance policy. The coverage is written on a 100% replacement/stated value
basis, with varying retentions.
The District has a self-insurance program for health benefits, including medical, dental and
vision coverage, for its employees and retirees who choose to remain within the plan. The
claims are administered by a third party and accounted for in the Health Benefits Fund (an
internal service fund). The participating funds make payments to the Health Benefits Fund by
means of premiums charged and employee payroll deductions. The payments are based on
management's estimates, using historical trends, of the amounts needed to pay prior and
current year claims. The expenditures include an actuarial estimate to determine the amount
needed for losses incurred but not reported at year end. The District maintains excess
insurance coverage for health care costs.
The claims liabilities are based on actuarial valuations performed by independent actuaries as
of September 30, 2014, and are presented on a net undiscounted basis. The liability includes
claims incurred but not reported. The estimated liabilities by risk category at September 30,
2014 are as follows:
Amounts Due
Balance Within One
9/30/2014 Year
Workers' Compensation $ 3,706,000 $ 769,330
General and Automobile 67,000 49,992
Health Insurance 1,744,918 1,744,918
$ 5,517,918 $ 2,564,240
Changes in the claims liability amount for the current and prior fiscal year are summarized
below:
Current Claims
Fiscal Beginning and Changes in Claim Ending
Year Liability Estimates Payments Liability
2013 6,743,395 25,435,821 (25,835,260) 6,343,956
2014 6,343,956 26,204,480 (27,030,518) 5,517,918
III-41
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(16) INSURANCE ACTIVITIES (continued)
To minimize the financial impact of potential unforeseen catastrophes, District policy allows a
fund balance reserve for the self-insurance of workers' compensation, general and automobile
liability claims, of up to $10 million in excess of the most recent actuarially-estimated liability
determination.
There were no significant changes in insurance coverage from the prior year and the amount of
settlements did not exceed the insurance coverage for each of the past three years.
(17) CONDEMNATION PROCEEDINGS
The District is party to numerous lengthy condemnation proceedings (as plaintiff) and inverse
condemnation proceedings (as defendant or co-defendant) regarding the taking of private lands
throughout the District for public use. The court may rule there was no taking of land by the
District resulting in no commitment to the District. Where a taking is ruled, the court determines
the value of the land claimed by the owner and payment is made to the owner upon transfer of
title to the District.
At September 30, 2014, the court had yet to rule on a number of proceedings for which the land
value and title transfer date is undetermined. The District is unable to estimate the potential
financial exposure relative to these rulings, if any.
When the court rules there is a taking, the District will budget and appropriate funds to pay for
the purchase of the land.
(18) MAJOR CONSTRUCTION COMMITMENTS
The Everglades Construction Project (ECP), the first major step in the Everglades restoration
pursuant to the Everglades Forever Act (EFA) was passed by the Florida Legislature in 1994.
The 1994 EFA directed the District to acquire land, design, permit, and construct a series of
Stormwater Treatment Areas (STAB) to reduce phosphorus levels from stormwater runoff and
other sources before it enters the Everglades Protection Area (EPA). In total, the ECP was
composed of 12 interrelated construction projects located between Lake Okeechobee and the
EPA. The STAs, which consist of six large constructed wetlands with a combined area of over
52,000 acres, are the cornerstone of the ECP.
The ECP is one of the largest public works projects in the nation for environmental restoration.
The total cost associated with implementing the ECP is shared among the District, state and
federal governments, and the agricultural community. Major funding sources for the EFA
include a one-tenth mill ad valorem property tax levy (0.0613 mill for FY2013), agricultural
privilege taxes, state funds, federal funds, Alligator Alley toll revenues, and other environmental
mitigation funds. The 1994 ECP capital projects were completed in fiscal year 2007 for a total
cost of $514.8 million (local share). When combined with the federal share of $198.9 million,
the total capital cost associated with the 1994 ECP is$713.7 million.
111-42
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(18) MAJOR CONSTRUCTION COMMITMENTS (continued)
In 2003 the Florida Legislature amended the 1994 EFA to include the 2003 Long-Term Plan for
Achieving Water Quality Goals for Everglades Protection Area Tributary Basins (Long-Term
Plan) as the strategy for achieving the long-term water quality goals for the Everglades
Protection Area. The amended EFA also expanded the use of the District's one-tenth mill ad
valorem property tax levy, agricultural privilege taxes and other funding sources for
implementing the initial phase of the Long-Term Plan, including Everglades Stormwater
Treatment Area enhancements, research and optimization, and operation and maintenance of
the ECP. Also in 2003, the State of Florida's Environmental Regulation Commission adopted a
water quality standard for phosphorus within the EPA that includes a numeric criterion of 10
parts per billion (ppb) for total phosphorus.
In 2004, the Long-Term Plan was revised to include the addition of approximately 18,000 acres
of STAs on Compartments B and C in the Everglades Agricultural Area (EAA). There were
subsequent revisions occurring in 2005, 2006 and 2007. These revisions also addressed
modifications to the STA enhancement projects, changes to the source controls component of
the plan, changes to the plan's Process Development and Engineering component, and the
addition of new projects to the Long-Term Plan. The revised Long-Term Plan's initial 13-year
phase is projected to cost approximately$1.2 billion.
In 2013, the Florida legislature modified the EFA and redefined the Long-Term Plan to also
include the Restoration Strategies Regional Water Quality Plan, as defined in Section
373.4592(13), F.S.
In FY2014, a total of $53.6 million was expended for work associated with the Everglades
Forever Act. Of this amount, $6.5 million was expended for Restoration Strategies — Regional
Projects Conceptual Planning and Design; and $19.2 million for STA Operations and
Maintenance. Debt Service payments related to Certificates of Participation issued in 2006
(FY2007) to fund construction totaled $19.5 million. The remaining $8.4 million was spent on
other EFA-related components such as program support, monitoring, assessment, research,
and evaluation in the EPA.
The Comprehensive Everglades Restoration Plan is a conceptual plan that proposes major
modifications to the Central and Southern Florida Project in order to reverse decades of
ecosystem decline. Specifically, the plan describes nearly 50 major projects and 68 project
components to be constructed at an original cost estimate of$10.9 billion, in 2004 dollars. Major
components of CERP focus on restoring the quantity, quality, timing, and distribution of water
for the natural system, and include aquifer storage and recovery, in-ground reservoirs, rainfall-
driven operations, removing barriers to sheetflow, seepage management, stormwater treatment
areas, surface water storage reservoirs, and water reuse and conservation. The estimated costs
for CERP have increased to $13.5 billion, based on price level (inflation) adjustments to 2009
dollars; and revisions made to scope based on finalized designs for projects such as the Indian
River Lagoon —South, Picayune Strand Restoration, Site 1 Impoundment, and C-111 Spreader
Canal Western projects.
CERP is an equal partnership between the State of Florida and the federal government. The
State of Florida and the South Florida Water Management District have invested approximately
$1.9 billion toward this effort. Through September 30, 2014, 256,011 acres or 63 percent of the
estimated lands needed to implement CERP have been acquired.
111-43
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2014
(18) MAJOR CONSTRUCTION COMMITMENTS(continued)
In FY2014, a total of $95.3 million dollars were expended for the implementation of CERP
projects, of which payments of Debt Service related to Certificates of Participation issued by the
SFWMD and bonds issued by FDEP totaled $33.9 million dollars.
(19) OTHER COMMITMENTS AND CONTINGENCIES
The District also participates in several other federal and state assistance programs that are
subject to financial and program compliance audits. Such audits could lead to reimbursements
to the grantor agency for disallowed expenditures. However, management believes any
additional such disallowances, if any, will be immaterial.
111-44
FINANCIAL SECTION
REQUIRED SUPPLEMENTARY INFORMATION
OTHER THAN MD&A
(UNAUDITED)
South Florida Water Management District Page 1 of 2
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual-(Unaudited)
For the Year Ended September 30,2014
Variance with
Final Budget-
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Ad Valorem Property Taxes $ 111,232,713 $ 111,554,463 $ 112,385,298 $ 830,835
Intergovernmental 452,374 452,374 106,458 (345,916)
Investment Earnings(Losses) 1,200,000 1,200,000 1,357,462 157,462
Licenses, Permits and Fees 2,042,999 2,042,999 3,720,028 1,677,029
Sale of District Property 75,000 75,000 38,592 (36,408)
Leases 56,181 56,181 141,169 84,988
Other 434,700 434,700 378,105 (56,595)
Total Revenues 115,493,967 115,815,717 118,127,112 2,311,395
EXPENDITURES
Current
Adminstrative Services and Executive Offices
Land Stewardship 274,752 235,958 232,839 3,119
Mission Support 33,167,988 32,403,404 30,415,548 1,987,856
Modeling and Scientific Support 3,250,830 2,582,530 2,520,477 62,053
Operations and Maintenance 10,968,915 10,842,510 10,436,203 406,307
Regulation 4,819,222 4,066,788 3,848,146 218,642
Restoration 10,572,665 8,396,345 5,948,589 2,447,756
Water Supply 1,271,983 1,134,998 945,397 189,601
64,326,355 59,662,533 54,347,199 5,315,334
Operations, Maintenance, and Construction
Land Stewardship 1,029,507 1,028,837 928,269 100,568
Mission Support 523,427 530,322 498,204 32,118
Modeling and Scientific Support 2,089,380 2,406,928 2,343,175 63,753
Operations and Maintenance 9,231,750 10,839,984 9,572,383 1,267,601
Regulation 72,244 147,248 133,674 13,574
Restoration 6,371,798 4,781,890 2,828,152 1,953,738
Water Supply 798,988 748,079 710,605 37,474
Total Operations, Maintenance,and Construction 20,117,094 20,483,288 17,014,462 3,468,826
Regulation
Operations and Maintenance 24,300 23,773 23,529 244
Regulation 14,695,434 14,406,513 14,224,401 182,112
Restoration 637,173 590,075 548,367 41,708
Water Supply - 47,585 31,097 16,488
Total Regulation 15,356,907 15,067,946 14,827,394 240,552
IV-1
South Florida Water Management District Page 2 of 2
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual-(Unaudited)
For the Year Ended September 30,2014
Variance with
Final Budget-
Original Final Positive
Budget Budget Actual (Negative)
Water Resources
Land Stewardship - 2,000 1,756 244
Modeling and Scientific Support 6,954,359 7,506,039 7,371,683 134,356
Restoration 4,858,758 4,929,345 4,170,821 758,534
Water Supply 6,162,214 6,233,510 5,850,240 383,270
Total Water Resources 17,975,331 18,670,894 17,394,500 1,276,404
Contingency
Managerial Reserve - 4,866,256 - 4,866,256
Managerial Reserve-Contingency 15,742,735 15,742,735 - 15,742,735
Total Contingency 15,742,735 20,608,991 - 20,608,991
Total Expenditures 133,518,422 134,493,652 103,583,555 30,910,108
Revenues in Excess of(Less than)Expenditures (18,024,455) (18,677,935) 14,543,557 33,221,492
OTHER FINANCING SOURCES(USES)
Transfers In 23,869,679 25,367,780 25,360,610 (7,170)
Transfers Out (38,762,905) (39,607,526) (39,600,356) 7,170
Total Other Financing Sources(Uses) (14,893,226) (14,239,746) (14,239,746) -
Net Change in Fund Balance (32,917,681) (32,917,681) 303,811 33,221,492
Fund Balance at Beginning of Year 63,115,887 63,115,887 63,115,887 -
Fund Balance at End of Year $ 30,198,206 $ 30,198,206 $ 63,419,698 $ 33,221,492
IV-2
South Florida Water Management District Page 1 of 2
Okeechobee Basin Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual-(Unaudited)
For the Year Ended September 30,2014
Variance with
Final Budget-
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Ad Valorem Property Taxes $ 110,714,216 $ 110,889,716 $ 111,802,444 $ 912,728
Intergovernmental 3,576,213 3,576,213 5,517,940 1,941,727
Investment Earnings(Losses) 850,000 850,000 1,513,729 663,729
Licenses, Permits and Fees 60,000 60,000 85,738 25,738
Sale of District Property 175,000 175,000 213,400 38,400
Leases 1,369,999 1,369,999 1,169,445 (200,554)
Other 25,000 25,000 308,762 283,762
Total Revenues 116,770,428 116,945,928 120,611,458 3,665,530
EXPENDITURES
Current
Adminstrative Services and Executive Offices
Land Stewardship 125,425 5,600 - 5,600
Mission Support 3,621,975 3,620,575 2,829,232 791,243
Operations and Maintenance 2,603,106 1,416,909 1,370,070 46,839
Restoration 9,862,759 6,889,821 5,036,737 1,853,084
16,213,265 11,932,905 9,236,039 2,696,766
Operations, Maintenance, and Construction
Land Stewardship 5,245,908 5,642,763 5,207,523 435,240
Mission Support - 485 485 -
Modeling and Scientific Support 577,012 557,012 317,824 239,188
Operations and Maintenance 73,862,528 75,856,798 70,309,790 5,547,008
Regulation - 2,012 1,692 320
Restoration 10,553,143 3,283,890 2,745,335 538,555
Water Supply 15,418 58,069 55,863 2,206
Total Operations, Maintenance, and Construction 90,254,009 85,401,029 78,638,512 6,762,517
Regulation
Operations and Maintenance 1,000 - - -
Restoration 526,946 503,049 436,228 66,821
Total Regulation 527,946 503,049 436,228 66,821
Water Resources
Modeling and Scientific Support - 179,146 119,782 59,364
Operations and Maintenance - 2,308 1,183 1,125
Restoration 4,287,379 4,236,033 3,875,776 360,257
Water Supply 452,974 339,516 278,799 60,717
Total Water Resources 4,740,353 4,757,003 4,275,540 481,463
IV-3
South Florida Water Management District Page 2 of 2
Okeechobee Basin Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual-(Unaudited)
For the Year Ended September 30,2014
Variance with
Final Budget-
Original Final Positive
Budget Budget Actual (Negative)
Contingency
Managerial Reserve - 8,973,533 - 8,973,533
Managerial Reserve-Contingency 40,512,602 40,512,602 - 40,512,602
Total Contingency 40,512,602 49,486,135 - 49,486,135
Total Expenditures 152,248,175 152,080,121 92,586,319 59,493,702
Revenues in Excess of(Less than)Expenditures (35,477,745) (35,134,193) 28,025,139 63,159,332
OTHER FINANCING SOURCES(USES)
Transfers In 163,157 418,780 173,861 (244,919)
Transfers Out (28,465,539) (29,064,714) (28,819,795) 244,919
Total Other Financing Sources(Uses) (28,302,382) (28,645,934) (28,645,934) -
Net Change in Fund Balance (63,780,127) (63,780,127) (620,795) 63,159,332
Fund Balance at Beginning of Year 108,477,717 108,477,717 108,477,717 -
Fund Balance at End of Year $ 44,697,590 $ 44,697,590 $ 107,856,922 $ 63,159,332
IV-4
South Florida Water Management District Page 1 of 1
Everglades Restoration Trust Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual-(Unaudited)
For the Year Ended September 30,2014
Variance with
Final Budget-
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Ad Valorem Property Taxes $ 35,358,675 $ 35,446,425 $ 35,700,467 $ 254,042
Agricultural Privilege Taxes 11,300,000 11,300,000 11,439,721 139,721
Intergovernmental 5,107,500 5,107,500 4,752,985 (354,515)
Investment Earnings(Losses) 700,000 700,000 375,219 (324,781)
Sale of District Property - - 6,267 6,267
Other - - 9,125 9,125
Total Revenues 52,466,175 52,553,925 52,283,784 (270,141)
EXPENDITURES
Current
Adminstrative Services and Executive Offices
Restoration 7,376,632 3,791,367 3,158,350 633,017
7,376,632 3,791,367 3,158,350 633,017
Operations, Maintenance,and Construction
Operations and Maintenance - 10,959 10,839 120
Restoration 23,104,051 23,393,690 20,515,603 2,878,087
Total Operations, Maintenance, and Construction 23,104,051 23,404,649 20,526,442 2,878,207
Regulation
Restoration 1,163,153 1,194,246 1,108,374 85,872
Total Regulation 1,163,153 1,194,246 1,108,374 85,872
Water Resources
Restoration 5,231,977 5,696,391 5,344,135 352,256
Total Water Resources 5,231,977 5,696,391 5,344,135 352,256
Contingency
Managerial Reserve - 1,468,243 - 1,468,243
Managerial Reserve-Contingency 3,000,000 3,000,000 - 3,000,000
Total Contingency 3,000,000 4,468,243 - 4,468,243
Total Expenditures 39,875,813 38,554,896 30,137,301 8,417,595
Revenues in Excess of(Less than)Expenditures 12,590,362 13,999,029 22,146,483 8,147,454
OTHER FINANCING SOURCES(USES)
Transfers In 1,138,000 1,138,000 1,138,000 -
Transfers Out (22,648,291) (24,056,958) (24,056,958) -
Total Other Financing Sources(Uses) (21,510,291) (22,918,958) (22,918,958) -
Net Change in Fund Balance (8,919,929) (8,919,929) (772,475) 8,147,454
Fund Balance at Beginning of Year 10,655,617 10,655,617 10,655,617 -
Fund Balance at End of Year $ 1,735,688 $ 1,735,688 $ 9,883,142 $ 8,147,454
IV-5
South Florida Water Management District
Schedule of Employer Contributions
Other Post-Employment Benefit Plans
September 30, 2014
Schedule of Employer Contributions
Annual
Required
Year Ended Employer Contribution Percentage
September 30, Contributions (ARC) Contributed
2009 $ 1,028,112 $ 3,675,782 27.97%
2010 $ 1,560,396 $ 7,972,296 19.57%
2011 $ 3,705,335 $ 7,834,678 47.29%
2012 $ 2,344,703 $ 4,813,042 48.72%
2013 $ 1,847,965 $ 4,756,056 38.85%
2014 $ 2,486,411 $ 4,853,618 51.23%
Schedule of Funding Progress
(3) (4)
(1) (2) Unfunded Funded Ratio (5) (6)
Actuarial Actuarial Actuarial Actuarial (Actuarial Covered UAAL as a
Valuation Value of Plan Accrued Accrued Value of Plan Payroll (Active Percentage of
Date Assets Liability (AAL) Liability (UAAL) Assets/AAL) Plan Members) Covered Payroll
(2)-(1) (1)/(2) (3)/(5)
7/1/2009 — $ 93,842,506 $ 93,842,506 0% $110,368,449 85.03%
7/1/2011 — $ 62,913,036 $ 62,913,036 0% $108,728,010 57.86%
7/1/2013 — $ 66,497,962 $ 66,497,962 0% $103,092,344 64.50%
As required by GASB Statement No. 45 an actuarial valuation is required at least biennially.
IV-6
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2014
BUDGETARY INFORMATION
• Budgets are legally adopted for all funds and are adopted on a basis consistent with
generally accepted accounting principles. The adopted budget represents a fiscal-year
financial plan that details Governing Board approved revenues and expenditures. The
District's level of budgetary control, defined as the lowest level at which management
may not reallocate resources without approval of the Governing Board, is at the program
level within a fund and resource area. There are seven Programs: Land Stewardship,
Mission Support, Modeling and Scientific Support, Operations and Maintenance,
Regulation, Restoration, and Water Supply. The District is organized by four main
resource areas: Administrative Services and Executive Offices; Operations,
Maintenance, and Construction; Regulation; and Water Resources.
• The accompanying budgetary data represent the original and the final amended budgets
as approved by the Governing Board. During fiscal year 2014, the Governing Board
approved five budget amendments. Of the five budget amendments, only three
amendments effected governmental funds. Two of the budget amendments recognized
receipts of $1.0 million in unbudgeted intergovernmental revenues. The two
amendments impacted governmental funds other than the three presented herein. The
last amendment impacted the General Fund, Okeechobee Basin Special Revenue Fund
and the Everglades Restoration Trust Special Revenue Fund budgeted revenues and
expenditures. This amendment authorized additional Ad Valorem revenue and
increased expenditures up to $1.5 million, respectively, to cover Health Insurance
Claims. Only $585,000 (General Fund - $321,750, Okeechobee Basin Special Revenue
Fund - $175,500 and Everglades Restoration Trust Special Revenue Fund - $87,750)
was transferred to the Health Insurance Fund because it was determined to be sufficient
to cover all remaining fiscal year 2014 claims. As part of the adoption of the original
District budget, a Governing Board-authorized resolution provides for the transfer of
funds from and to the General Fund and/or Special Revenue Funds to and from the
corresponding Capital Projects Fund. These transfers are processed throughout the
fiscal year, and while there is no impact to the overall District budget total, individual
Funds will realize increases or decreases in budget in comparison to the amount
originally adopted.
• As a result of the aforementioned inter-fund transfers processed during fiscal year 2014,
General Fund realized an increase in budgeted expenditures of $653,480, while the
Okeechobee Basin Special Revenue Fund and the Everglades Restoration Trust Special
Revenue Fund realized decreases in budgeted expenditures of $343,552 and
$1,408,668, respectively. For the year ended September 30, 2014, the General Fund
realized an overall increase in budgeted expenditures of $975,230 and budgeted
revenues of $321,750. The Okeechobee Basin Special Revenue Fund realized a net
decrease in budgeted expenditures of $168,052 and an increase in budgeted revenues
of $175,500. The Everglades Restoration Trust Special Revenue Fund realized a net
decrease in budgeted expenditures of $1,320,918 and an increase in budgeted
revenues of $87,750. None of the reported funds had expenditures for the fiscal year in
excess of the final budgetary appropriation.
IV-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2014
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
• The employer contributions reported on the Schedule of Employer Contributions (see
page IV-6) represents the current amount paid by the District for the current year cost of
the benefits, which were entirely paid to or on behalf of retirees. Accordingly, no assets
have been placed in trust to advance fund the employer's obligation.
IV-8
FINANCIAL SECTION
OTHER SUPPLEMENTARY INFORMATION
Special Revenue Funds
Special Revenue Funds are maintained to account for the proceeds of specific revenue sources
that are legally restricted to expenditures for specific purposes.
Big Cypress Basin Fund
Accounts for the normal operating expenditures of the Big Cypress Basin, an area covering all or
part of two counties in Southwest Florida. Funding is provided by a .1593 mill tax levy and interest
earnings.
Save Our Rivers Fund
Accounts for revenues provided by: 1) a portion of documentary stamp tax revenues appropriated
and allocated in the District's name and deposited in the Florida Water Management Lands Trust
Fund administered by the State of Florida, 2) regulatory fines, and 3) interest earnings used to fund
expenditures incurred towards the management and restoration of environmentally sensitive water
resource lands within the District. This fund also accounts for the principal and interest payments
on special obligation land acquisition bonds.
State Appropriations Fund
Accounts for revenue collected and operating expenditures for various projects utilizing state
sources. Among the funding sources are the Ecosystem Management and Restoration Trust
Fund, the Water Protection and Sustainability Trust Fund, and various state agencies.
Invasive Aquatic Plant Control Fund
Accounts for revenues provided by the Florida Department of Environmental Protection towards
expenditures incurred for aquatic plant control throughout the District, including the Kissimmee
River and Upper Chain of Lakes.
Upland Invasive Plant Control Fund
Accounts for revenues provided by the Florida Department of Environmental Protection which fund
expenditures incurred in order to control the spread of melaleuca trees in environmentally sensitive
areas.
Wetland Mitigation Fund
Accounts for revenues provided by private and other governmental contributions as part of the
required permit to fund expenditures incurred to create new wetlands or improve alternative
existing wetlands due to the destruction of designated wetlands. Revenues are also provided by
interest earnings on unspent fund balances.
Indian River Lagoon Restoration Fund
Accounts for revenues provided by sales of Indian River Lagoon license plates, used in funding
expenditures incurred for the purpose of enhancing the environmental and scenic value of surface
waters in the Indian River Lagoon.
Federal Land Management Fund
Accounts for grant revenues received from the federal government in support of expenditures
relating to the management and maintenance of environmentally sensitive lands.
v-1
Special Revenue Funds(continued)
External Grants Fund
Accounts for revenues and expenditures related to grants that are received and used primarily for
monitoring, restoration, and maintenance efforts. This separate fund facilitates the detailed
tracking of expenditures and/or cost share contributions.
Lake Belt Mitigation Fund
Accounts for revenues received pursuant to Chapter 373.41492, Florida Statutes, which requires
mitigation from impacts resulting from rock mining in the Lake Belt area of Miami-Dade County,
and related expenditures incurred towards the restoration and management of environmentally
sensitive lands.
Everglades License Plate Fund
Accounts for proceeds derived from Everglades license plate sales, which are used to fund
expenditures incurred towards the conservation and protection of the natural resources and
abatement of water pollution in the Everglades.
Lake Okeechobee Fund
Accounts for revenues provided by the State of Florida through the Department of
Environmental Protection towards restoration projects associated with Lake Okeechobee.
Save Our Everglades Fund
Accounts for revenues and operating expenditures for the Comprehensive Everglades Restoration
Plan (CERP)and the Northern Everglades Estuary Protection Program(NEEPP)which are funded
from the State's Save Our Everglades Trust Fund.
Federal Emergency Management Agency Fund
Accounts for revenues provided by the Department of Homeland Security to fund operating costs
associated with noncapital project expenditures.
Florida Bay Fund
Accounts for operating expenditures associated with restoring a more natural quantity, distribution,
and timing of water flows to Florida Bay.
V-2
Capital Projects Funds
Capital Projects Funds are maintained to account for financial resources to be used for the
purchase of real property and the acquisition or construction of major capital facilities.
District Fund
Accounts for capital expenditures on projects associated with District-wide functions. Revenue is
provided through operating transfers from the General Fund.
Big Cypress Basin Fund
Accounts for capital expenditures incurred towards projects benefiting the Big Cypress Basin.
Revenue is provided through operating transfers from the Big Cypress Basin Special Revenue
Fund.
Save Our Rivers Fund
Accounts for revenues received from annual allocations through the State's Florida Forever Trust
Fund, and related expenditures incurred for the purchase of environmentally sensitive lands.
Federal Emergency Management Agency Fund
Accounts for revenues provided by the Department of Homeland Security to fund related capital
project expenditures.
Florida Bay Fund
Accounts for capital expenditures associated with restoring a more natural quantity, distribution,
and timing of water flows to Florida Bay.
Wetland Mitigation Fund
Accounts for revenues provided by private and other governmental contributions as part of the
required permit to fund capital expenditures incurred to create new wetlands or improve alternative
existing wetlands due to the destruction of designated wetlands. Revenues are also provided by
interest earnings on unspent fund balances.
Comprehensive Everglades Restoration Plan (CERP) Fund
Accounts for capital expenditures associated with projects included in the Central and Southern
Florida (C&SF) Restudy and which form the basis of the CERP. These projects are designed to
increase the availability of water supplies for consumptive use or cost share with the federal
government on regional projects intended to mitigate consequences that are an outgrowth of the
original C&SF Flood Control Project. Funding is provided by transfers from the General Fund and
Okeechobee Basin Special Revenue Fund.
Federal Land Acquisition Fund
Accounts for grant revenues received from the federal government in support of expenditures
relating to the purchase of environmentally sensitive lands.
V-3
Capital Projects Funds(continued)
Comprehensive Everglades Restoration Plan (CERP)—Other Creditable Funds Fund
Accounts for revenues received from and expenditures funded through various sources for the
Comprehensive Everglades Restoration Plan, excluding revenues and expenditures from
federal sources, district ad-valorem property tax sources, and the state's Save Our Everglades
Trust Fund.
COPS—Comprehensive Everglades Restoration Plan (CERP) Fund
Accounts for revenues from Certificates of Participation issued to support the accelerated
construction of projects in the Comprehensive Everglades Restoration Plan.
Lake Belt Mitigation Fund
Accounts for revenues received pursuant to Chapter 373.41492, Florida Statutes, which requires
mitigation from impacts resulting from rock mining in the Lake Belt area of Miami-Dade County,
and related capital expenditures incurred towards the acquisition, restoration and management of
environmentally sensitive lands.
Lake Okeechobee Fund
Accounts for revenues provided by the State of Florida through the Department of
Environmental Protection towards capital restoration projects associated with Lake
Okeechobee.
Permanent Fund
The Permanent Fund is used to report resources that are legally restricted to the extent that
only earnings, not principal, may be used for purposes that support the District's programs.
Wetland Mitigation Fund
Accounts for the long-term maintenance portion of fees collected from private businesses and
other governmental agencies as a condition for issuing wetlands mitigation permits. Interest
earned on these fees is used to pay for the costs associated with long-term maintenance of lands
purchased pursuant to the District's wetlands mitigation program.
V-4
South Florida Water Management District
Combining Balance Sheet Page 1 of 6
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds
Invasive Upland
Big Cypress State Aquatic Plant Invasive Plant Wetland
Basin Save Our Rivers Appropriations Control Control Mitigation
ASSETS
Cash and Investments $ 10,858,266 $ 7,809,190 $ 2,154,973 $ - $ - $ 19,640,951
Cash Held by Trustee - - - - - -
Accounts Receivable 10,586 60,230 - - - 23,049
Due from Other Governments 88,254 17,622 - 269,638 103,499 -
Inventory 148,322 - - - - -
Prepaid and Other Assets - - - - - -
Total Assets $ 11,105,428 $ 7,887,042 $ 2,154,973 $ 269,638 $ 103,499 $ 19,664,000
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 164,891 $ 266,404 $ 180,190 $ 32,653 $ 103,499 $ 302,321
Due to Other Governments 600,000 - - - - -
Due to Other Funds 14,932 - - 204,865 - 636
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 892,622 - - - -
Total Liabilities&Deferred Inflows of
779,823 1,159,026 180,190 237,518 103,499 302,957
Resources
FUND BALANCES
Nonspendable 148,322 - - - - -
Restricted 10,177,283 6,728,016 1,974,783 32,120 - 19,361,043
Assigned - - - - - -
Unassigned - - - - - -
Total Fund Balances 10,325,605 6,728,016 1,974,783 32,120 - 19,361,043
Total Liabilities,Deferred Inflows of $ 11,105,428 $ 7,887,042 $ 2,154,973 $ 269,638 $ 103,499 $ 19,664,000
Resources&Fund Balances
V-5 Continued
South Florida Water Management District
Combining Balance Sheet Page 2 of 6
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds(Continued)
Indian River
Lagoon Federal Land Lake Belt Everglades Lake
Restoration Management External Grants Mitigation License Plate Okeechobee
ASSETS
Cash and Investments $ 286,189 $ 3,936,945 $ - $ 43,105,182 $ 597,116 $ 2,350,491
Cash Held by Trustee - - - - - -
Accounts Receivable 334 36,974 - 48,888 686 -
Due from Other Governments - - 54,547 - - -
Inventory - - - - - -
Prepaid and Other Assets - - - 742,623 - -
Total Assets $ 286,523 $ 3,973,919 $ 54,547 $ 43,896,693 $ 597,802 $ 2,350,491
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ - $ 232,468 $ 33,409 $ 93,837 $ 119,998 $ 100,438
Due to Other Governments - - - - - -
Due to Other Funds - - 182,699 681 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - 234,201 - - - -
Total Liabilities&Deferred Inflows of
Resources - 466,669 216,108 94,518 119,998 100,438
FUND BALANCES
Nonspendable - - - - - -
Restricted 286,523 3,507,250 - 43,802,175 477,804 2,250,053
Assigned - - - - - -
Unassigned - - (161,561) - - -
Total Fund Balances
286,523 3,507,250 (161,561) 43,802,175 477,804 2,250,053
Total Liabilities,Fund nd Balances Inflows of $ 286,523 $ 3,973,919 $ 54,547 $ 43,896,693 $ 597,802 $ 2,350,491
Resources&Fund Balances
V-6
•
South Florida Water Management District
Combining Balance Sheet Page 3 of 6
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds(Concluded) Capital Projects Funds
Federal
Emergency
Save Our Management Big Cypress
Everglades Agency Florida Bay Total District Basin
ASSETS&DEFERRED OUTFLOWS OF
RESOURCES
ASSETS
Cash and Investments $ 1,961,934 $ 12,820 $ 1,262,964 $ 93,977,021 $ 14,502,793 $ 10,511,765
Cash Held by Trustee - - - - 10,519,874
-
Accounts Receivable 43,489 - 1,564 225,800 33,202 12,261
Due from Other Governments 1,337,793 - 1,020 1,872,373 - -
Inventory - - - 148,322 - -
Prepaid and Other Assets - - - 742,623 75,000 -
Total Assets $ 3,343,216 $ 12,820 $ 1,265,548 $ 96,966,139 $ 25,130,869 $ 10,524,026
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 1,265,695 $ - $ 314,780 $ 3,210,583 $ 423,892 $ 294,901
Due to Other Governments - - - 600,000 -
-
Due to Other Funds - - 2,717 406,530 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - 1,021 1,127,844 - -
Total Liabilities&Deferred Inflows of 1,265,695 - 318,518 5,344,957 423,892 294,901
Resources
FUND BALANCES
Nonspendable - - - 148,322 - -
Restricted 2,217,345 - 947,030 91,761,425 10,519,875 10,229,125
Assigned - 12,820 - 12,820 14,187,102 -
Unassigned (139,824) - - (301,385) - -
Total Fund Balances 2,077,521 12,820 947,030 91,621,182 24,706,977 10,229,125
Resources re &Liabilities,Fund Balances esowsof $ 3,343,216 $ 12,820 $ 1,265,548 $ 96,966,139 $ 25,130,869 $ 10,524,026
Resources&Fund Balances
V-7 Continued
South Florida Water Management District
Combining Balance Sheet Page 4 of 6
Nonmajor Governmental Funds
September 30,2014
Capital Projects Funds(Continued)
Federal Comprehensive
Emergency Everglades
Save Our Managment Wetland Restoration Federal Land
Rivers Agency Florida Bay Mitigation Plan(CERP) Acquisition
ASSETS
Cash and Investments $ 12,049,819 $ 114,917 $ 2,534,578 $ 9,046,593 $ 4,437,696 $ 3,932,715
Cash Held by Trustee - - - - - -
Accounts Receivable 14,234 - 2,937 10,521 - -
Due from Other Governments - - - - - -
Inventory -
Prepaid and Other Assets -
Total Assets $ 12,064,053 $ 114,917 $ 2,537,515 $ 9,057,114 $ 4,437,696 $ 3,932,715
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ - $ - $ 16,371 $ - $ 145,013 $ -
Due to Other Governments - - - - - -
Due to Other Funds -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - - - -
Total Liabilities&Deferred Inflows of - - 16,371 - 145,013 -
Resources
FUND BALANCES
Nonspendable - - - - - -
Restricted 12,064,053 - 2,521,144 18,691,952 - 3,932,715
Assigned - 114,917 - - 4,292,683 -
Unassigned - - - (9,634,838) - -
Total Fund Balances 12,064,053 114,917 2,521,144 9,057,114 4,292,683 3,932,715
Total Liabilities,Deferred Inflows of $ 12,064,053 $ 114,917 $ 2,537,515 $ 9,057,114 $ 4,437,696 $ 3,932,715
Resources&Fund Balances
V-8
South Florida Water Management District
Combining Balance Sheet Page 5 of 6
Nonmajor Governmental Funds
September 30,2014
Capital Project Funds(Concluded) Permanent Fund
Comprehensive COPS
Everglades Comprehensive
Restoration Plan Everglades Lake Belt Lake Wetland
Other Creditable Restoration Plan Mitigation Okeechobee Total Mitigation
ASSETS
Cash and Investments $ 4,339,947 $ - $ 868,632 $ 6,986 $ 62,346,441 $ 15,182,868
Cash Held by Trustee - 13,977,457 - - 24,497,331 -
Accounts Receivable - - 1,306 - 74,461 17,714
Due from Other Governments - - - - - -
Inventory - - - - - -
Prepaid and Other Assets - - - - 75,000 -
Total Assets $ 4,339,947 $ 13,977,457 $ 869,938 $ 6,986 $ 86,993,233 $ 15,200,582
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 24,412 $ - $ 195,907 $ - $ 1,100,496 $ -
Due to Other Governments - - - - - -
Due to Other Funds - - - - - -
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - - - - - -
Total Liabilities&Deferred Inflows of 24,412 195,907 1,100,496
Resources
FUND BALANCES
Nonspendable - - - - - 14,967,099
Restricted - 13,977,457 674,031 6,986 72,617,338 233,483
Assigned 4,315,535 - - - 22,910,237 -
Unassigned - - - - (9,634,838) -
Total Fund Balances 4,315,535 13,977,457 674,031 6,986 85,892,737 15,200,582
Total Liabilities,Deferred Inflows of $ 4,339,947 $ 13,977,457 $ 869,938 $ 6,986 $ 86,993,233 $ 15,200,582
Resources&Fund Balances
V-9 Continued
South Florida Water Management District
Combining Balance Sheet Page 6 of 6
Nonmajor Governmental Funds
September 30,2014
Total
Nonmajor
Governmental
Funds
ASSETS
Cash and Investments $ 171,506,330
Cash Held by Trustee 24,497,331
Accounts Receivable 317,975
Due from Other Governments 1,872,373
Inventory 148,322
Prepaid and Other Assets 817,623
Total Assets
$ 199,159,954
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES&FUND BALANCES
LIABILITIES
Accounts Payable $ 4,311,079
Due to Other Governments 600,000
Due to Other Funds 406,530
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue 1,127,844
Total Liabilities&Deferred Inflows of
Resources 6,445,453
FUND BALANCES
Nonspendable 15,115,421
Restricted 164,612,246
Assigned 22,923,057
Unassigned (9,936,223)
Total Fund Balances
192,714,501
Total Liabilities,Deferred Inflows of
Resources&Fund Balances $ 199,159,954
V-10
Concluded
South Florida Water Management District Page 1 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds
Invasive Upland
Big Cypress State Aquatic Plant Invasive Plant Wetland
Basin Save Our Rivers Appropriations Control Control Mitigation
REVENUES
Ad Valorem Property Taxes $ 9,339,360 $ - $ - $ - $ - -
Intergovernmental - 7,042,242 - 2,786,921 3,043,253 -
Investment Earnings(Losses) 129,441 - - - - 255,202
Licenses,Permits and Fees 15,475 - - - - 2,328,276
Sale of District Property 9,947 5,503 - - - -
Leases 26,720 684,307 - - - -
Other 13,312 2,179 - 4,552 5,865 2,502
Total Revenues 9,534,255 7,734,231 - 2,791,473 3,049,118 2,585,980
EXPENDITURES
Current Operating
Land Stewardship 142,702 710,620 - - 3,049,118 1,365,889
Mission Support 170,540 - - -
Operations and Maintenance 2,954,299 127,576 - 2,686,174 - 9,900
Regulation 3,927 - - - - 59,962
Restoration 3,298,073 174,575 1,507,980 - - 106,923
Water Supply 956,111 - - - - -
Capital Outlay - - - - -
Debt Service
Bond Principal Retirement - 6,120,000 - - - _
Bond Interest - 768,598 - - - -
COPS Bond Principal Retirement - - - - - -
COPS Bond Interest - - -
Total Expenditures 7,525,652 7,901,369 1,507,980 2,686,174 3,049,118 1,542,674
Revenues in Excess of(Less than)Expenditures 2,008,603 (167,138) (1,507,980) 105,299 - 1,043,306
OTHER FINANCING SOURCES(USES)
Transfers In - 152,570 - - - -
Transfers Out (2,278,657) - - -
(4,204,029)
Total Other Financing Sources(Uses) (2,278,657) 152,570 - - - (4,204,029)
Net Change in Fund Balances (270,054) (14,568) (1,507,980) 105,299 - (3,160,723)
Fund Balances(Deficits)at Beginning of Year 10,595,659 6,742,584 3,482,763 (73,179) - 22,521,766
Fund Balances(Deficits)at End of Year $ 10,325,605 $ 6,728,016 $ 1,974,783 $ 32,120 $ - $ 19,361,043
V-11 Continued
South Florida Water Management District Page 2 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds (Continued)
Indian River
Lagoon Federal Land Lake Belt Everglades Lake
Restoration Management External Grants Mitigation License Plate Okeechobee
REVENUES
Ad Valorem Property Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental 91,871 - 573,652 - 221,256
Investment Earnings(Losses) 3,022 2,812 - 368,812 5,498 -
Licenses,Permits and Fees - - - 19,479,675 - -
Sale of District Property - _ - - - -
Leases - 1,883,223 - - _ -
Other - - _ 9 - -
Total Revenues 94,893 1,886,035 573,652 19,848,496 226,754 -
EXPENDITURES
Current Operating
Land Stewardship - 472,694 - 929,650 - -
Mission Support - - - - - -
Operations and Maintenance - - 450,000 - - -
Regulation - - - - -
Restoration - - 298,713 - 246,461 1,323,237
Water Supply - - - - - -
Capital Outlay - - - - - -
Debt Service
Bond Principal Retirement - - - - - -
Bond Interest - - - - - -
COPS Bond Principal Retirement - - - - - -
COPS Bond Interest - _ - - - -
Total Expenditures - 472,694 748,713 929,650 246,461 1,323,237
Revenues in Excess of(Less than)Expenditures 94,893 1,413,341 (175,061) 18,918,846 (19,707) (1,323,237)
OTHER FINANCING SOURCES(USES)
Transfers In - 248,526 - 233,531 - 1,652
Transfers Out - - - (1,463,966) - -
Total Other Financing Sources(Uses) - 248,526 - (1,230,435) - 1,652
Net Change in Fund Balances 94,893 1,661,867 (175,061) 17,688,411 (19,707) (1,321,585)
Fund Balances(Deficits)at Beginning of Year 191,630 1,845,383 13,500 26,113,764 497,511 3,571,638
Fund Balances(Deficits)at End of Year $ 286,523 $ 3,507,250 ($ 161,561) $ 43,802,175 $ 477,804 $ 2,250,053
V-12
South Florida Water Management District Page 3 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Special Revenue Funds(Concluded) Capital Projects Funds
Federal
Emergency
Save Our Management Big Cypress
Everglades Agency Florida Bay Total District Basin
REVENUES
Ad Valorem Property Taxes $ - $ - $ - $ 9,339,360 $ - $ -
Intergovernmental 10,845,294 3,290 39,423 24,647,202 88,971 -
Investment Earnings(Losses) 4,378 - 3,861 773,026 71,068 96,236
Licenses,Permits and Fees - - - 21,823,426 - -
Sale of District Property - - - 15,450 74 -
Leases 723,889 - - 3,318,139 - -
Other - - - 28,419 97,813 -
Total Revenues 11,573,561 3,290 43,284 59,945,022 257,926 96,236
EXPENDITURES
Current Operating
Land Stewardship 909,238 - - 7,579,911 - -
Mission Support - - - 170,540 - _
Operations and Maintenance - - - 6,227,949 - -
Regulation - - - 63,889 - -
Restoration 11,799,405 3,290 1,616,987 20,375,644 - -
Water Supply - - - 956,111 - -
CapitalOutlay - - - - 9,452,366 967,751
Debt Service
Bond Principal Retirement - - - 6,120,000 - -
Bond Interest - - - 768,598 - -
COPS Bond Principal Retirement - _ -
4,943,488 -
COPS Bond Interest
- - 10,783,527 -
Total Expenditures 12,708,643 3,290 1,616,987 42,262,642 25,179,381 967,751
Revenues in Excess of(Less than)Expenditures (1,135,082) - (1,573,703) 17,682,380
(24,921,455) (871,515)
OTHER FINANCING SOURCES(USES)
Transfers In - - 2,200,000 2,836,279 37,756,788 2,278,657
Transfers Out - - (432,583) (8,379,235) (2,299,149) -
Total Other Financing Sources(Uses) - - 1,767,417 (5,542,956) 35,457,639 2,278,657
Net Change in Fund Balances (1,135,082) - 193,714 12,139,424 10,536,184 1,407,142
Fund Balances(Deficits)at Begining of Year 3,212,603 12,820 753,316 79,481,758 14,170,793 8,821,983
Fund Balances(Deficits)at End of Year $ 2,077,521 $ 12,820 $ 947,030 $ 91,621,182 $ 24,706,977 $ 10,229,125
V-13 Continued
South Florida Water Management District Page 4 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Capital Projects Funds (Continued)
Federal Comprehensive
Emergency Everglades Federal
Save Our Managment Wetland Restoration Land
Rivers Agency Florida Bay Mitigation Plan(CERP) Acquisition
REVENUES
Ad Valorem Property Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental - - - - -
Investment Earnings(Losses) 131,883 - 23,103 94,080 - _-Licenses,Permits and Fees - - -
Sale of District Property - 19 - -
34
Leases - _ - - - -
Other 33,133 - - - - -
Total Revenues 165,016 19 23,103 94,080 34 -
EXPENDITURES
Current Operating
Land Stewardship - - - - - -
Mission Support - - - _ - -
Operations and Maintenance - - - _ -
Regulation - - - - - -
Restoration - - - _ - -
Water Supply - - _ - - -
Capital Outlay 1,172 - 27,653 29,787 577,781 -
Debt Service
Bond Principal Retirement - - - - - -
Bond Interest - - -
COPS Bond Principal Retirement - - _ - -
COPS Bond Interest - - -
Total Expenditures 1,172 - 27,653 29,787 577,781 -
Revenues in Excess of(Less than)Expenditures 163,844 19 (4,550) 64,293 (577,747) -
OTHER FINANCING SOURCES(USES)
Transfers In - - 432,583 383,680 832,428 -
Transfers Out (152,570) - -
(22,869,679) (411,682)
Total Other Financing Sources(Uses) (152,570) - 432,583 383,680 (22,037,251) (411,682)
Net Change in Fund Balances 11,274 19 428,033 447,973 (22,614,998) (411,682)
Fund Balances(Deficits)at Beginning of Year 12,052,779 114,898 2,093,111 8,609,141 26,907,681 4,344,397
Fund Balances(Deficits)at End of Year $ 12,064,053 $ 114,917 $ 2,521,144 $ 9,057,114 $ 4,292,683 $ 3,932,715
V-14
South Florida Water Management District Page 5 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Capital Projects Funds (Concluded) Permanent Fund
Comprehensive COPS
Everglades Comprehensive
Restoration Plan Everglades Lake Belt Lake Wetland
Other Creditable Restoration Plan Mitigation Okeechobee Total Mitigation
REVENUES
Ad Valorem Property Taxes $ - $ - $ - $ - $ - $ -
Intergovernmental - - - - 88,971 96,430
Investment Earnings(Losses) - 81,597 11,573 - 509,540 154,535
-
Licenses,Permits and Fees - _
12,690
Sale of District Property 127
rt -
Leases _ _ - - _ -
Other - 1,140,181 - - 1,271,127 -
Total Revenues - 1,221,778 11,573 - 1,869,765 263,655
EXPENDITURES
Current Operating
Land Stewardship - _ _ - - -
Mission Support - _ - - - -
Operations and Maintenance _ _ - _ - -
Regulation - _ - - _ -
Restoration - 100,000 - - -
100,000
Water Supply - - - -
Capital Outlay 137,614 - 928,851 24,487 12,147,462 -
Debt Service
Bond Principal Retirement _ _ - - _
Bond Interest _ _ -
COPS Bond Principal Retirement - - - 4,943,488 -
COPS Bond Interest 10,783,527 -
Total Expenditures 137,614 100,000 928,851 24,487 27,974,477 -
Revenues in Excess of(Less than)Expenditures (137,614) 1,121,778 (917,278) (24,487) (26,104,712) 263,655
OTHER FINANCING SOURCES(USES)
Transfers In 3,000,000 100,000 1,463,966 - 46,248,102 820,349
Transfers Out (191,783) (15,928,773) (233,531) -
(1,652) (42,088,819)
Total Other Financing Sources(Uses) 2,808,217 (15,828,773) 1,230,435 (1,652) 4,159,283 820,349
Net Change in Fund Balances 2,670,603 (14,706,995) 313,157
(26,139) (21,945,429) 1,084,004
Fund Balances(Deficits)at Beginning of Year 1,644,932 28,684,452 360,874 33,125 107,838,166 14,116,578
Fund Balances(Deficits)at End of Year $ 4,315,535 $ 13,977,457 $ 674,031 $ 6,986 $ 85,892,737 $ 15,200,582
V-15 Continued
South Florida Water Management District Page 6 of 6
Combining Statement of Revenues,Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
September 30,2014
Total
Nonmajor
Governmental
Funds
REVENUES
Ad Valorem Property Taxes $ 9,339,360
Intergovernmental 24,832,603
Investment Earnings(Losses) 1,437,101
Licenses,Permits and Fees 21,836,116
Sale of District Property 15,577
Leases 3,318,139
Other
1,299,546
Total Revenues 62,078,442
EXPENDITURES
Current Operating
Land Stewardship 7,579,911
Mission Support 170,540
Operations and Maintenance 6,227,949
Regulation 63,889
Restoration 20,475,644
Water Supply 956,111
Capital Outlay 12,147,462
Debt Service
Bond Principal Retirement 6,120,000
Bond Interest 768,598
COPS Bond Principal Retirement 4,943,488
COPS Bond Interest 10,783,527
Total Expenditures 70,237,119
Revenues in Excess of(Less than)Expenditures (8,158,677)
OTHER FINANCING SOURCES(USES)
Transfers In 49,904,730
Transfers Out (50,468,054)
Total Other Financing Sources(Uses) (563,324)
Net Change in Fund Balances (8,722,001)
Fund Balances(Deficits)at Beginning of Year 201,436,502
Fund Balances(Deficits)at End of Year $ 192,714,501
V-16
Concluded
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v-17
South Florida Water Managment District
Special Revenue Fund
Big Cypress Basin
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Ad Valorem Property Taxes $ 9,251,574 $ 9,339,360 $ 87,786
Investment Earnings(Losses) 120,000 129,441 9,441
Licenses, Permits and Fees 8,000 15,475 7,475
Sale of District Property - 9,947 9,947
Leases - 26,720 26,720
Other 1,500 13,312 11,812
Total Revenues 9,381,074 9,534,255 153,181
EXPENDITURES
Operations, Maintenance,and Construction
Land Stewardship 159,000 142,702 16,298
Operations and Maintenance 3,019,735 2,731,150 288,585
Restoration 494,473 464,344 30,129
Total Operations, Maintenance, and Construction 3,673,208 3,338,196 335,012
Water Resources
Operations and Maintenance 685 685 -
Restoration 273,380 175,128 98,252
Total Water Resources 274,065 175,813 98,252
Contingency
Managerial Reserve 133,369 - 133,369
Managerial Reserve-Contingency 760,401 - 760,401
Total Contingency 893,770 - 893,770
Adminstrative Services and Executive Offices
Mission Support 379,669 170,540 209,129
Operations and Maintenance 155,756 222,464 (66,708)
Regulation 3,928 3,928 -
Restoration 4,240,149 2,658,600 1,581,549
Water Supply 3,054,511 956,111 2,098,400
7,834,013 4,011,643 3,822,370
Total Expenditures 12,675,056 7,525,652 5,149,404
Revenues in Excess of(Less than)Expenditures (3,293,982) 2,008,603 5,302,585
OTHER FINANCING SOURCES(USES)
Transfers Out (2,278,657) (2,278,657) -
Total Other Financing Sources(Uses) (2,278,657) (2,278,657) -
Net Change in Fund Balance (5,572,639) (270,054) 5,302,585
Fund Balance at Beginning of Year 10,595,659 10,595,659 -
Fund Balance at End of Year $ 5,023,020 $ 10,325,605 $ 5,302,585
V-18
South Florida Water Managment District
Special Revenue Fund
Save Our Rivers
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 10,903,598 $ 7,042,242 ($ 3,861,356)
Sale of District Property - 5,503 5,503
Leases 777,589 684,307 (93,282)
Other - 2,179 2,179
Total Revenues 11,681,187 7,734,231 (3,946,956)
EXPENDITURES
Operations, Maintenance, and Construction
Land Stewardship 719,883 710,620 9,263
Operations and Maintenance 138,166 127,576 10,590
Restoration 179,605 174,575 5,030
Total Operations, Maintenance, and Construction 1,037,654 1,012,771 24,883
Debt Service
Bond Principal Retirement 6,120,000 6,120,000 -
Bond Interest 768,598 768,598 -
Total Debt Service 6,888,598 6,888,598 -
Contingency
Managerial Reserve 3,967,178 - 3,967,178
Total Contingency 3,967,178 - 3,967,178
Total Expenditures 11,893,430 7,901,369 3,992,061
Revenues in Excess of(Less than)Expenditures (212,243) (167,138) 45,105
OTHER FINANCING SOURCES(USES)
Transfers In 152,570 152,570 -
Total Other Financing Sources(Uses) 152,570 152,570 -
Net Change in Fund Balance (59,673) (14,568) 45,105
Fund Balance at Beginning of Year 6,742,584 6,742,584 -
Fund Balance at End of Year $ 6,682,911 $ 6,728,016 $ 45,105
V-19
South Florida Water Managment District
Special Revenue Fund
State Appropriations
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
EXPENDITURES
Contingency
Managerial Reserve $ 428,042 $ - $ 428,042
Total Contingency 428,042 - 428,042
Adminstrative Services and Executive Offices
Restoration 2,786,084 1,507,980 1,278,104
2,786,084 1,507,980 1,278,104
Total Expenditures 3,214,126 1,507,980 1,706,146
Revenues in Excess of(Less than)Expenditures (3,214,126) (1,507,980) 1,706,146
Net Change in Fund Balance (3,214,126) (1,507,980) 1,706,146
Fund Balance at Beginning of Year 3,482,763 3,482,763 -
Fund Balance at End of Year $ 268,637 $ 1,974,783 $ 1,706,146
V-20
South Florida Water Managment District
Special Revenue Fund
Invasive Aquatic Plant Control
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 2,999,353 $ 2,786,921 ($ 212,432)
Other - 4,552 4,552
Total Revenues 2,999,353 2,791,473 (207,880)
EXPENDITURES
Operations, Maintenance, and Construction
Operations and Maintenance 3,033,887 2,686,174 347,713
Total Operations, Maintenance,and Construction 3,033,887 2,686,174 347,713
Total Expenditures 3,033,887 2,686,174 347,713
Revenues in Excess of(Less than)Expenditures (34,534) 105,299 139,833
Net Change in Fund Balance (34,534) 105,299 139,833
Fund Balance at Beginning of Year (73,179) (73,179) -
Fund Balance at End of Year ($ 107,713) $ 32,120 $ 139,833
V-21
South Florida Water Managment District
Special Revenue Fund
Upland Invasive Plant Control
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 3,050,000 $ 3,043,253 ($ 6,747)
Other - 5,865 5,865
Total Revenues 3,050,000 3,049,118 (882)
EXPENDITURES .
Operations, Maintenance,and Construction
Land Stewardship 3,050,000 3,049,118 882
Total Operations, Maintenance, and Construction 3,050,000 3,049,118 882
Total Expenditures 3,050,000 3,049,118 882
Revenues in Excess of(Less than)Expenditures _ - _
Net Change in Fund Balance - - -
Fund Balance at Beginning of Year - - -
Fund Balance at End of Year $ - $ - $ _
V-22
South Florida Water Managment District
Special Revenue Fund
Wetland Mitigation
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 255,202 $ 255,202
Licenses, Permits and Fees - 2,328,276 2,328,276
Other - 2,502 2,502
Total Revenues - 2,585,980 2,585,980
EXPENDITURES
Operations, Maintenance,and Construction
Land Stewardship 1,647,879 1,365,889 281,990
Operations and Maintenance 10,000 9,900 100
Restoration 110,000 105,757 4,243
Total Operations, Maintenance, and Construction 1,767,879 1,481,546 286,333
Regulation
Regulation 80,773 59,962 20,811
Total Regulation 80,773 59,962 20,811
Contingency
Managerial Reserve 195,760 - 195,760
Total Contingency 195,760 - 195,760
Adminstrative Services and Executive Offices
Restoration 10,879 1,166 9,713
10,879 1,166 9,713
Total Expenditures 2,055,291 1,542,674 512,617
Revenues in Excess of(Less than)Expenditures (2,055,291) 1,043,306 3,098,597
OTHER FINANCING SOURCES(USES)
Transfers Out (4,204,029) (4,204,029) -
Total Other Financing Sources(Uses) (4,204,029) (4,204,029) -
Net Change in Fund Balance (6,259,320) (3,160,723) 3,098,597
Fund Balance at Beginning of Year 22,521,766 22,521,766 -
Fund Balance at End of Year $ 16,262,446 $ 19,361,043 $ 3,098,597
V-23
South Florida Water Managment District
Special Revenue Fund
Indian River Lagoon Restoration
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 95,000 $ 91,871 ($ 3,129)
Investment Earnings(Losses) - 3,022 3,022
Total Revenues 95,000 94,893 (107)
EXPENDITURES
Adminstrative Services and Executive Offices
Restoration 125,564 - 125,564
125,564 - 125,564
Total Expenditures 125,564 - 125,564
Revenues in Excess of(Less than)Expenditures (30,564) 94,893 125,457
Net Change in Fund Balance (30,564) 94,893 125,457
Fund Balance at Beginning of Year 191,630 191,630 -
Fund Balance at End of Year $ 161,066 $ 286,523 $ 125,457
V-24
South Florida Water Managment District
Special Revenue Fund
Federal Land Management
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 2,812 $ 2,812
Leases 358,474 1,883,223 1,524,749
Total Revenues 358,474 1,886,035 1,527,561
EXPENDITURES
Operations, Maintenance, and Construction
Land Stewardship 636,047 472,694 163,353
Total Operations, Maintenance, and Construction 636,047 472,694 163,353
Total Expenditures 636,047 472,694 163,353
Revenues in Excess of(Less than)Expenditures (277,573) 1,413,341 1,690,914
OTHER FINANCING SOURCES(USES)
Transfers In 248,526 248,526 -
Total Other Financing Sources(Uses) 248,526 248,526 -
Net Change in Fund Balance (29,047) 1,661,867 1,690,914
Fund Balance at Beginning of Year 1,845,383 1,845,383 -
Fund Balance at End of Year $ 1,816,336 $ 3,507,250 $ 1,690,914
V-25
South Florida Water Managment District
Special Revenue Fund
External Grants
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 987,530 $ 573,652 ($ 413,878)
Total Revenues 987,530 573,652 (413,878)
EXPENDITURES
Operations, Maintenance,and Construction
Operations and Maintenance 450,000 450,000 -
Restoration 85,758 73,652 12,106
Total Operations, Maintenance, and Construction 535,758 523,652 12,106
Water Resources
Restoration 75,000 30,000 45,000
Total Water Resources 75,000 30,000 45,000
Adminstrative Services and Executive Offices
Restoration 496,030 195,061 300,969
496,030 195,061 300,969
Total Expenditures 1,106,788 748,713 358,075
Revenues in Excess of(Less than)Expenditures (119,258) (175,061) (55,803)
Net Change in Fund Balance (119,258) (175,061) (55,803)
Fund Balance at Beginning of Year 13,500 13,500 -
Fund Balance at End of Year ($ 105,758) ($ 161,561) ($ 55,803)
V-26
South Florida Water Managment District
Special Revenue Fund
Lake Belt Mitigation
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 368,812 $ 368,812
Licenses, Permits and Fees 1,801,117 19,479,675 17,678,558
Other - 9 9
Total Revenues 1,801,117 19,848,496 18,047,379
EXPENDITURES
Operations, Maintenance,and Construction
Land Stewardship 1,951,251 897,220 1,054,031
Total Operations, Maintenance, and Construction 1,951,251 897,220 1,054,031
Contingency
Managerial Reserve 2,689,000 - 2,689,000
Total Contingency 2,689,000 - 2,689,000
Adminstrative Services and Executive Offices
Land Stewardship 33,707 32,430 1,277
33,707 32,430 1,277
Total Expenditures 4,673,958 929,650 3,744,308
Revenues in Excess of(Less than)Expenditures (2,872,841) 18,918,846 21,791,687
OTHER FINANCING SOURCES(USES)
Transfers In 233,531 233,531 -
Transfers Out (1,463,966) (1,463,966) -
Total Other Financing Sources(Uses) (1,230,435) (1,230,435) -
Net Change in Fund Balance (4,103,276) 17,688,411 21,791,687
Fund Balance at Beginning of Year 26,113,764 26,113,764 -
Fund Balance at End of Year $ 22,010,488 $ 43,802,175 $ 21,791,687
V-27
South Florida Water Managment District
Special Revenue Fund
Everglades License Plate
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 145,000 $ 221,256 $ 76,256
Investment Earnings(Losses) - 5,498 5,498
Total Revenues 145,000 226,754 81,754
EXPENDITURES
Water Resources
Restoration 271,463 246,461 25,002
Total Water Resources 271,463 246,461 25,002
Total Expenditures 271,463 246,461 25,002
Revenues in Excess of(Less than)Expenditures (126,463) (19,707) 106,756
Net Change in Fund Balance (126,463) (19,707) 106,756
Fund Balance at Beginning of Year 497,511 497,511 -
Fund Balance at End of Year $ 371,048 $ 477,804 $ 106,756
V-28
South Florida Water Managment District
Special Revenue Fund
Lake Okeechobee
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
EXPENDITURES
Operations, Maintenance, and Construction
Restoration $ 14,001 $ 13,130 $ 871
Total Operations, Maintenance, and Construction 14,001 13,130 871
Water Resources
Restoration 12,987 12,987 -
Total Water Resources 12,987 12,987 -
Contingency
Managerial Reserve 739,138 - 739,138
Total Contingency 739,138 - 739,138
Adminstrative Services and Executive Offices
Restoration 2,786,306 1,297,120 1,489,186
2,786,306 1,297,120 1,489,186
Total Expenditures 3,552,432 1,323,237 2,229,195
Revenues in Excess of(Less than)Expenditures (3,552,432) (1,323,237) 2,229,195
OTHER FINANCING SOURCES(USES)
Transfers In 1,652 1,652 -
Total Other Financing Sources(Uses) 1,652 1,652 -
Net Change in Fund Balance (3,550,780) (1,321,585) 2,229,195
Fund Balance at Beginning of Year 3,571,638 3,571,638 -
Fund Balance at End of Year $ 20,858 $ 2,250,053 $ 2,229,195
V-29
South Florida Water Managment District
Special Revenue Fund
Save Our Everglades
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 8,388,724 $ 10,845,294 $ 2,456,570
Investment Earnings(Losses) - 4,378 4,378
Leases 479,413 723,889 244,476
Total Revenues 8,868,137 11,573,561 2,705,424
EXPENDITURES
Operations, Maintenance, and Construction
Land Stewardship 943,626 909,238 34,388
Restoration 10,100,639 8,211,014 1,889,625
Total Operations, Maintenance, and Construction 11,044,265 9,120,252 1,924,013
Contingency
Managerial Reserve 4,383,509 - 4,383,509
Total Contingency 4,383,509 - 4,383,509
Adminstrative Services and Executive Offices
Restoration 3,865,736 3,588,391 277,345
3,865,736 3,588,391 277,345
Total Expenditures 19,293,510 12,708,643 6,584,867
Revenues in Excess of(Less than)Expenditures (10,425,373) (1,135,082) 9,290,291
Net Change in Fund Balance (10,425,373) (1,135,082) 9,290,291
Fund Balance at Beginning of Year 3,212,603 3,212,603 -
Fund Balance at End of Year ($ 7,212,770) $ 2,077,521 $ 9,290,291
•
V-30
South Florida Water Managment District
Special Revenue Fund
Federal Emergency Management Agency
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ - $ 3,290 $ 3,290
Total Revenues - 3,290 3,290
EXPENDITURES
Adminstrative Services and Executive Offices
Restoration 4,250 3,290 960
4,250 3,290 960
Total Expenditures 4,250 3,290 960
Revenues in Excess of(Less than)Expenditures (4,250) - 4,250
Net Change in Fund Balance (4,250) - 4,250
Fund Balance at Beginning of Year 12,820 12,820 -
Fund Balance at End of Year $ 8,570 $ 12,820 $ 4,250
V-31
South Florida Water Managment District
Special Revenue Fund
Florida Bay
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ - $ 39,423 $ 39,423
Investment Earnings(Losses) - 3,861 3,861
Total Revenues - 43,284 43,284
EXPENDITURES
Water Resources
Restoration 1,930,920 1,609,317 321,603
Total Water Resources 1,930,920 1,609,317 321,603
Contingency
Managerial Reserve 7,276 - 7,276
Total Contingency 7,276 - 7,276
Adminstrative Services and Executive Offices
Restoration 23,873 7,670 16,203
23,873 7,670 16,203
Total Expenditures 1,962,069 1,616,987 345,082
Revenues in Excess of(Less than)Expenditures (1,962,069) (1,573,703) 388,366
OTHER FINANCING SOURCES(USES)
Transfers In 2,200,000 2,200,000 -
Transfers Out (432,583) (432,583) -
Total Other Financing Sources(Uses) 1,767,417 1,767,417 -
Net Change in Fund Balance (194,652) 193,714 388,366
Fund Balance at Beginning of Year 753,316 753,316 -
Fund Balance at End of Year $ 558,664 $ 947,030 $ 388,366
V-32
South Florida Water Managment District
Capital Projects Fund
District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ - $ 88,971 $ 88,971
Investment Earnings(Losses) - 71,068 71,068
Sale of District Property - 74 74
Other - 97,813 97,813
Total Revenues - 257,926 257,926
EXPENDITURES
Operations, Maintenance,and Construction
Mission Support 1,027,297 1,020,833 6,464
Operations and Maintenance 1,828,767 1,027,027 801,740
Restoration 10,503,062 5,566,638 4,936,424
Total Operations, Maintenance, and Construction 13,359,126 7,614,498 5,744,628
Water Resources
Modeling and Scientific Support 141,255 140,229 1,026
Restoration 170,146 170,146 -
Water Supply 2,830 2,830 -
Total Water Resources 314,231 313,205 1,026
Debt Service
COPS Bond Principal Retirement 4,943,489 4,943,488 1
COPS Bond Interest 10,783,527 10,783,527 -
Total Debt Service 15,727,016 15,727,015 1
Contingency
Managerial Reserve 15,624,166 - 15,624,166
Total Contingency 15,624,166 - 15,624,166
Adminstrative Services and Executive Offices
Mission Support 616,800 534,999 81,801
Operations and Maintenance 548,551 548,551 -
Regulation 378,999 328,999 50,000
Restoration 115,364 112,114 3,250
1,659,714 1,524,663 135,051
Total Expenditures 46,684,253 25,179,381 21,504,872
Revenues in Excess of(Less than)Expenditures (46,684,253) (24,921,455) 21,762,798
OTHER FINANCING SOURCES(USES)
Transfers In 37,756,788 37,756,788 -
Transfers Out (2,299,149) (2,299,149) -
Total Other Financing Sources(Uses) 35,457,639 35,457,639 -
Net Change in Fund Balance (11,226,614) 10,536,184 21,762,798
Fund Balance at Beginning of Year 14,170,793 14,170,793 -
Fund Balance at End of Year $ 2,944,179 $ 24,706,977 $ 21,762,798
V-33
South Florida Water Managment District
Capital Projects Fund
Okeechobee Basin
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 134,231 $ 134,231
Other - 15 15
Total Revenues - 134,246 134,246
EXPENDITURES
Operations, Maintenance, and Construction
Land Stewardship 125,450 123,673 1,777
Operations and Maintenance 30,200,515 26,619,112 3,581,403
Restoration 11,097,731 2,202,948 8,894,783
Total Operations, Maintenance, and Construction 41,423,696 28,945,733 12,477,963
Water Resources
Restoration 301,930 301,930 -
Water Supply 35,025 35,025 -
Total Water Resources 336,955 336,955 -
Contingency
Managerial Reserve 4,060,629 - 4,060,629
Total Contingency 4,060,629 - 4,060,629
Adminstrative Services and Executive Offices
Restoration 1,442,224 1,196,645 245,579
1,442,224 1,196,645 245,579
Total Expenditures 47,263,504 30,479,333 16,784,171
Revenues in Excess of(Less than)Expenditures (47,263,504) (30,345,087) 16,918,417
OTHER FINANCING SOURCES(USES)
Transfers In 28,613,627 28,613,627 -
Transfers Out (10,704) (10,704) -
Total Other Financing Sources(Uses) 28,602,923 28,602,923 -
Net Change in Fund Balance (18,660,581) (1,742,164) 16,918,417
Fund Balance at Beginning of Year 18,594,913 18,594,913 -
Fund Balance at End of Year ($ 65,668) $ 16,852,749 $ 16,918,417
V-34
South Florida Water Managment District
Capital Projects Fund
Big Cypress Basin
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 96,236 $ 96,236
Total Revenues - 96,236 96,236
EXPENDITURES
Operations, Maintenance, and Construction
Operations and Maintenance 1,116,352 659,735 456,617
Restoration 555,509 241,350 314,159
Total Operations, Maintenance, and Construction 1,671,861 901,085 770,776
Contingency
Managerial Reserve 1,000,000 - 1,000,000
Total Contingency 1,000,000 - 1,000,000
Adminstrative Services and Executive Offices
Restoration 66,667 66,666 1
66,667 66,666 1
Total Expenditures 2,738,528 967,751 1,770,777
Revenues in Excess of(Less than)Expenditures (2,738,528) (871,515) 1,867,013
OTHER FINANCING SOURCES(USES)
Transfers In 2,278,657 2,278,657 -
Total Other Financing Sources(Uses) 2,278,657 2,278,657 -
Net Change in Fund Balance (459,871) 1,407,142 1,867,013
Fund Balance at Beginning of Year 8,821,983 8,821,983 -
Fund Balance at End of Year $ 8,362,112 $ 10,229,125 $ 1,867,013
V-35
South Florida Water Managment District
Capital Projects Fund
Save Our Rivers
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 131,883 $ 131,883
Other - 33,133 33,133
Total Revenues - 165,016 165,016
EXPENDITURES
Operations, Maintenance, and Construction
Restoration 9,675,447 1,172 9,674,275
Total Operations, Maintenance,and Construction 9,675,447 1,172 9,674,275
Total Expenditures 9,675,447 1,172 9,674,275
Revenues in Excess of(Less than)Expenditures (9,675,447) 163,844 9,839,291
OTHER FINANCING SOURCES(USES)
Transfers Out (152,570) (152,570) -
Total Other Financing Sources(Uses) (152,570) (152,570) -
Net Change in Fund Balance (9,828,017) 11,274 9,839,291
Fund Balance at Beginning of Year 12,052,779 12,052,779 -
Fund Balance at End of Year $ 2,224,762 $ 12,064,053 $ 9,839,291
V-36
South Florida Water Managment District
Capital Projects Fund
Everglades Trust Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Ad Valorem Property Taxes $ - $ - $ -
Intergovernmental - 150,000 150,000
Investment Earnings(Losses) - 917,627 917,627
Sale of District Property - 310 310
Total Revenues - 1,067,937 1,067,937
EXPENDITURES
Operations, Maintenance, and Construction
Restoration 4,918,973 4,215,445 703,528
Total Operations, Maintenance, and Construction 4,918,973 4,215,445 703,528
Water Resources
Restoration 120,657 115,623 5,034
Total Water Resources 120,657 115,623 5,034
Debt Service
COPS Bond Principal Retirement 6,116,512 6,116,512 -
COPS Bond Interest 13,342,313 13,342,313 -
Total Debt Service 19,458,825 19,458,825 -
Contingency
Managerial Reserve 6,104,319 - 6,104,319
Total Contingency 6,104,319 - 6,104,319
Adminstrative Services and Executive Offices
Restoration 19,427 - 19,427
19,427 - 19,427
Total Expenditures 30,622,201 23,789,893 6,832,308
Revenues in Excess of(Less than)Expenditures (30,622,201) (22,721,956) 7,900,245
OTHER FINANCING SOURCES(USES)
Transfers In 21,856,958 21,856,958 -
Transfers Out (1,138,000) (1,138,000) -
Total Other Financing Sources(Uses) 20,718,958 20,718,958 -
Net Change in Fund Balance (9,903,243) (2,002,998) 7,900,245
Fund Balance at Beginning of Year 98,766,483 98,766,483 -
Fund Balance at End of Year $ 88,863,240 $ 96,763,485 $ 7,900,245
V-37
South Florida Water Managment District
Capital Projects Fund
Federal Emergency Management Agency
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Sale of District Property - $ 19 $ 19
Total Revenues - 19 19
EXPENDITURES
Revenues in Excess of(Less than)Expenditures 19 19
Net Change in Fund Balance - 19 19
Fund Balance at Beginning of Year 114,898 114,898 -
Fund Balance at End of Year $ 114,898 $ 114,917 $ 19
V-38
South Florida Water Managment District
Capital Projects Fund
Florida Bay
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 23,103 $ 23,103
Total Revenues - 23,103 23,103
EXPENDITURES
Water Resources
Restoration 27,782 27,653 129
Total Water Resources 27,782 27,653 129
Contingency
Managerial Reserve 1,500,000 - 1,500,000
Total Contingency 1,500,000 - 1,500,000
Total Expenditures 1,527,782 27,653 1,500,129
Revenues in Excess of(Less than)Expenditures (1,527,782) (4,550) 1,523,232
OTHER FINANCING SOURCES(USES)
Transfers In 432,583 432,583 -
Total Other Financing Sources(Uses) 432,583 432,583 -
Net Change in Fund Balance (1,095,199) 428,033 1,523,232
Fund Balance at Beginning of Year 2,093,111 2,093,111 -
Fund Balance at End of Year $ 997,912 $ 2,521,144 $ 1,523,232
V-39
South Florida Water Managment District
Capital Projects Fund
Wetland Mitigation
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 94,080 $ 94,080
Total Revenues - 94,080 94,080
EXPENDITURES
Operations, Maintenance,and Construction
Land Stewardship 29,037 29,037 -
Restoration 25,754 750 25,004
Total Operations, Maintenance, and Construction 54,791 29,787 25,004
Contingency
Managerial Reserve 3,471,180 - 3,471,180
Total Contingency 3,471,180 - 3,471,180
Total Expenditures 3,525,971 29,787 3,496,184
Revenues in Excess of(Less than)Expenditures (3,525,971) 64,293 3,590,264
OTHER FINANCING SOURCES(USES)
Transfers In 383,680 383,680 -
Total Other Financing Sources(Uses) 383,680 383,680 -
Net Change in Fund Balance (3,142,291) 477,973 3,590,264
Fund Balance at Beginning of Year 8,609,141 8,609,141 -
Fund Balance at End of Year $ 5,466,850 $ 9,087,114 $ 3,590,264
V-40
South Florida Water Managment District
Capital Projects Fund
Comprehensive Everglades Restoration Plan (CERP)
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Sale of District Property - $ 34 $ 34
Total Revenues - 34 34
EXPENDITURES
Operations, Maintenance, and Construction
Restoration 3,750,603 577,781 3,172,822
Total Operations, Maintenance,and Construction 3,750,603 577,781 3,172,822
Contingency
Managerial Reserve 984,272 - 984,272
Total Contingency 984,272 - 984,272
Total Expenditures 4,734,875 577,781 4,157,094
Revenues in Excess of(Less than)Expenditures (4,734,875) (577,747) 4,157,128
OTHER FINANCING SOURCES(USES)
Transfers In 832,428 832,428 -
Transfers Out (22,869,679) (22,869,679) -
Total Other Financing Sources(Uses) (22,037,251) (22,037,251) -
Net Change in Fund Balance (26,772,126) (22,614,998) 4,157,128
Fund Balance at Beginning of Year 26,907,681 26,907,681 -
Fund Balance at End of Year $ 135,555 $ 4,292,683 $ 4,157,128
V-41
South Florida Water Managment District
Capital Projects Fund
Federal Land Acquisition
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
EXPENDITURES
OTHER FINANCING SOURCES(USES)
Transfers Out ($ 411,683) ($ 411,682) $ 1
Total Other Financing Sources(Uses) (411,683) (411,682) 1
Net Change in Fund Balance (411,683) (411,682) 1
Fund Balance at Beginning of Year 4,344,397 4,344,397 -
Fund Balance at End of Year $ 3,932,714 $ 3,932,715 $ 1
V-42
South Florida Water Managment District
Capital Projects Fund
Save Our Everglades
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ 66,456,886 $ 50,251,826
($ 16,205,060)
Total Revenues 66,456,886 50,251,826 (16,205,060)
EXPENDITURES
Operations, Maintenance,and Construction
Restoration 77,261,776 55,303,404 21,958,372
Total Operations, Maintenance, and Construction 77,261,776 55,303,404 21,958,372
Contingency
Managerial Reserve 29,015,629 - 29,015,629
Total Contingency 29,015,629 - 29,015,629
Total Expenditures 106,277,405 55,303,404 50,974,001
Revenues in Excess of(Less than)Expenditures (39,820,519) (5,051,578) 34,768,941
OTHER FINANCING SOURCES(USES)
Transfers In 1,217,308 1,217,308 -
Total Other Financing Sources(Uses) 1,217,308 1,217,308 -
Net Change in Fund Balance (38,603,211) (3,834,270) 34,768,941
Fund Balance at Beginning of Year 1,470,356 1,470,356 -
Fund Balance at End of Year ($ 37,132,855) ($ 2,363,914) $ 34,768,941
V-43
South Florida Water Managment District
Capital Projects Fund
Comprehensive Everglades Restoration Plan-Other Creditable Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
EXPENDITURES
Operations, Maintenance, and Construction
Restoration $ 1,648,617 $ 137,614 $ 1,511,003
Total Operations, Maintenance, and Construction 1,648,617 137,614 1,511,003
Contingency
Managerial Reserve 2,804,532 - 2,804,532
Total Contingency 2,804,532 - 2,804,532
Total Expenditures 4,453,149 137,614 4,315,535
Revenues in Excess of(Less than)Expenditures (4,453,149) (137,614) 4,315,535
OTHER FINANCING SOURCES(USES)
Transfers In 3,000,000 3,000,000 -
Transfers Out (191,783) (191,783) -
Total Other Financing Sources(Uses) 2,808,217 2,808,217 -
Net Change in Fund Balance (1,644,932) 2,670,603 4,315,535
Fund Balance at Beginning of Year 1,644,932 1,644,932 -
Fund Balance at End of Year $ - $ 4,315,535 $ 4,315,535
V-44
South Florida Water Managment District
Capital Projects Fund
COPS-Everglades Forever Act(EFA)
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 155,487 $ 155,487
Total Revenues - 155,487 155,487
EXPENDITURES
Operations, Maintenance, and Construction
Restoration 36,055,728 25,803,587 10,252,141
Total Operations, Maintenance, and Construction 36,055,728 25,803,587 10,252,141
Total Expenditures 36,055,728 25,803,587 10,252,141
Revenues in Excess of(Less than)Expenditures (36,055,728) (25,648,100) 10,407,628
OTHER FINANCING SOURCES(USES)
Transfers In 15,928,773 15,928,773 -
Transfers Out (100,000) (100,000) -
Total Other Financing Sources(Uses) 15,828,773 15,828,773 -
Net Change in Fund Balance (20,226,955) (9,819,327) 10,407,628
Fund Balance at Beginning of Year 20,454,813 20,454,813 -
Fund Balance at End of Year $ 227,858 $ 10,635,486 $ 10,407,628
V-45
South Florida Water Managment District
Capital Projects Fund
COPS-Comprehensive Everglades Restoration Plan(CERP)
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 81,597 $ 81,597
Other - 1,140,181 1,140,181
Total Revenues - 1,221,778 1,221,778
EXPENDITURES
Operations, Maintenance,and Construction
Restoration 100,000 100,000 -
Total Operations, Maintenance, and Construction 100,000 100,000 -
Total Expenditures 100,000 100,000 -
Revenues in Excess of(Less than)Expenditures (100,000) 1,121,778 1,221,778
OTHER FINANCING SOURCES(USES)
Transfers In 100,000 100,000 -
Transfers Out (15,928,773) (15,928,773) -
Total Other Financing Sources(Uses) (15,828,773) (15,828,773) -
Net Change in Fund Balance (15,928,773) (14,706,995) 1,221,778
Fund Balance at Beginning of Year 28,684,452 28,684,452 -
Fund Balance at End of Year $ 12,755,679 $ 13,977,457 $ 1,221,778
V-46
South Florida Water Managment District
Capital Projects Fund
Lake Belt Mitigation
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30, 2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Investment Earnings(Losses) $ - $ 11,573 $ 11,573
Total Revenues - 11,573 11,573
EXPENDITURES
Operations, Maintenance,and Construction
Land Stewardship 1,331,041 928,851 402,190
Total Operations, Maintenance, and Construction 1,331,041 928,851 402,190
Total Expenditures 1,331,041 928,851 402,190
Revenues in Excess of(Less than)Expenditures (1,331,041) (917,278) 413,763
OTHER FINANCING SOURCES(USES)
Transfers In 1,463,966 1,463,966 -
Transfers Out (233,531) (233,531) -
Total Other Financing Sources(Uses) 1,230,435 1,230,435 -
Net Change in Fund Balance (100,606) 313,157 413,763
Fund Balance at Beginning of Year 360,874 360,874 -
Fund Balance at End of Year $ 260,268 $ 674,031 $ 413,763
V-47
South Florida Water Managment District
Capital Projects Fund
Lake Okeechobee
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
EXPENDITURES
Operations, Maintenance, and Construction
Restoration $ 115,961 $ 24,487 $ 91,474
Total Operations, Maintenance, and Construction 115,961 24,487 91,474
Total Expenditures 115,961 24,487 91,474
Revenues in Excess of(Less than)Expenditures (115,961) (24,487) 91,474
OTHER FINANCING SOURCES(USES)
Transfers Out (1,652) (1,652) -
Total Other Financing Sources(Uses) (1,652) (1,652) -
Net Change in Fund Balance (117,613) (26,139) 91,474
Fund Balance at Beginning of Year 33,125 33,125 -
Fund Balance at End of Year ($ 84,488) $ 6,986 $ 91,474
V-48
South Florida Water Managment District
Permanent Fund
Wetland Mitigation
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual
For the Year Ended September 30,2014
Variance with
Final
Final Budget-Positive
Budget Actual (Negative)
REVENUES
Intergovernmental $ - $ 96,430 $ 96,430
Investment Earnings(Losses) - 154,535 154,535
Licenses, Permits and Fees - 12,690 12,690
Total Revenues - 263,655 263,655
EXPENDITURES
Adminstrative Services and Executive Offices
Land Stewardship 820,349 - 820,349
820,349 - 820,349
Total Expenditures 820,349 - 820,349
Revenues in Excess of(Less than)Expenditures (820,349) 263,655 1,084,004
OTHER FINANCING SOURCES(USES)
Transfers In 820,349 820,349 -
Total Other Financing Sources(Uses) 820,349 820,349 -
Net Change in Fund Balance - 1,084,004 1,084,004
Fund Balance at Beginning of Year 14,116,578 14,116,578 -
Fund Balance at End of Year $ 14,116,578 $ 15,200,582 $ 1,084,004
V-49
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This Page has been Intentionally Left Blank
V-50
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Internal Service Funds
Internal Service Funds are used to account for District activities that provide services to other
funds and organizational units on a cost reimbursement basis.
Self Insurance Fund
Accounts for the operations related to providing workers' compensation, general liability, and
automobile insurance coverage to all District resource areas. Revenue is provided through
interfund charges based on a cost allocation study.
Health Benefits Fund
Accounts for the operations related to providing health and medical insurance coverage to
District employees and retirees who choose to remain in the plan. Revenue is provided through
interfund charges and employee and retiree contributions.
V-51
South Florida Water Management District
Combining Statement of Net Position
Internal Service Funds
September 30,2014
Self Insurance Health Benefits
Fund Fund Total
ASSETS
Current Assets
Cash and Cash Equivalents $ 10,111,256 $ 8,029,057 $ 18,140,313
Accounts Receivable 44,920 6,967 51,887
Due from Other Funds - 782,722 782,722
Prepaids 538,249 - 538,249
Other Assets 140,000 775,000 915,000
Total Current Assets 10,834,425 9,593,746 20,428,171
Noncurrent Assets
Furniture, Fixtures and Equipment 27,459 - 27,459
Computer Hardware 3,030 - 3,030
Vehicles 36,224 - 36,224
Accumulated Depreciation (34,586) - (34,586)
Total Noncurrent Assets 32,127 - 32,127
Total Assets 10,866,552 9,593,746 20,460,298
LIABILITIES
Current Liabilities
Accounts Payable $ 100,072 $ 643,088 $ 743,160
Due to Other Funds 2,339 - 2,339
Claims Payable 819,322 1,744,918 2,564,240
Total Current Liabilities 921,733 2,388,006 3,309,739
Noncurrent Liabilities
Claims Payable 2,953,678 - 2,953,678
Total Noncurrent Liabilities 2,953,678 - 2,953,678
Total Liabilities 3,875,411 2,388,006 6,263,417
NET POSITION
Net Position
Net Investment in Capital Assets 32,127 - 32,127
Unrestricted 6,959,014 7,205,740 14,164,754
Total Net Position $ 6,991,141 $ 7,205,740 $ 14,196,881
V-52
South Florida Water Management District
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds
For the Year Ended September 30,2014
Self Insurance Health Benefits
Fund Fund Total
OPERATING REVENUES
Charges for Services $ 1,730,901 $ 28,803,960 $ 30,534,861
Other Operating Revenue 85,132 - 85,132
Total Operating Revenues 1,816,033 28,803,960 30,619,993
OPERATING EXPENSES
Salaries 442,774 - 442,774
Benefits 147,081 - 147,081
Claims 288,171 25,916,308 26,204,479
Purchased Services 180,151 11,325 191,476
Administrative Fees - 1,922,790 1,922,790
Other 1,099,063 589,921 1,688,984
Depreciation 5,111 - 5,111
Total Operating Expenses 2,162,351 28,440,344 30,602,695
OPERATING INCOME(LOSS) (346,318) 363,616 17,298
NONOPERATING REVENUES
Interest Earnings 122,523 44,807 167,330
Gain on Disposal of Capital Assets 23 - 23
Total Nonoperating Revenues 122,546 44,807 167,353
Change in Net Position (223,772) 408,423 184,651
Net Position at Beginning of Year 7,214,913 6,797,317 14,012,230
Net Position at End of Year $ 6,991,141 $ 7,205,740 $ 14,196,881
V-53
South Florida Water Management District
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended September 30,2014
Self Insurance Health Benefits
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Receipts from Customers $ 1,732,351 $ 28,797,181 $ 30,529,532
Cash Payments to Suppliers (1,157,384) (2,163,604) (3,320,988)
Cash Payments for Salaries, Benefits (589,855) - (589,855)
Claims Paid (1,020,171) (26,010,346) (27,030,517)
Other Receipts(Payments) 85,132 (262,128) (176,996)
Net Cash Provided by(Used in)Operating Activities (949,927) 361,103 (588,824)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Sale of Capital Assets 23 - 23
Net Cash Provided by Capital and Related Financing Activities 23 - 23
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest Earnings 122,523 44,807 167,330
Net Cash Provided by Investing Activities 122,523 44,807 167,330
Net Increase(Decrease)in Cash and Cash Equivalents (827,381) 405,910 (421,471)
Cash and Cash Equivalents, Beginning of Year 10,938,637 7,623,147 18,561,784
Cash and Cash Equivalents, End of Year $ 10,111,256 $ 8,029,057 $ 18,140,313
RECONCILIATION OF OPERATING INCOME(LOSS)TO NET
CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES:
Operating Income(Loss) (346,318) 363,616 17,298
Adjustments to Reconcile Operating Income(Loss)to Net
Cash Provided by(Used In)Operating Activities
Depreciation 5,111 - 5,111
CHANGES IN ASSETS AND LIABILITIES:
Decrease(Increase)in Accounts Receivable 1,450 (6,779) (5,329)
Decrease(Increase)in Due from Other Funds - (262,128) (262,128)
Decrease(Increase)in Prepaids 47,438 - 47,438
Increase(Decrease)in Accounts Payable 74,158 360,432 434,590
Increase(Decrease)in Due to Other Funds 234 - 234
Increase(Decrease)in Estimated Unpaid Claims (732,000) (94,038) (826,038)
Net Cash Provided by(Used in)Operating Activities $ (949,927) $ 361,103 $ (588,824)
V-54
STATISTICAL SECTION
Statistical Section
This part of the South Florida Water Management District's Comprehensive Annual Financial
Report presents detailed information as context for understanding what the information in the
financial statements, note disclosure, and required supplementary information says about the
District's overall financial health.
FINANCIAL TRENDS VI-2
These schedules contain trend information to help the reader understand how the District's
financial performance and well-being have changed over time.
REVENUE CAPACITY VI-8
These schedules contain information to help the reader assess the factors affecting the
District's ability to generate its property taxes.
DEBT CAPACITY VI-17
These schedules present information to help the reader assess the affordability of the
District's current levels of outstanding debts and the District's ability to issue additional
debt in the future.
DEMOGRAPHIC AND ECONOMIC INFORMATION VI-19
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the District's financial activities take place
and to help make comparisons over time and with other governments.
OPERATING INFORMATION VI-23
These schedules contain information about the District's operations and resources to help
the reader understand how the District's financial information relates to the services the
District's provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
Comprehensive Annual Financial Reports for the relevant year.
VI-i
•
Schedule 1
South Florida Water Management Dis
Net Position by Category
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2005 2006 2007 2008' 2009 2010 2011 2012 2013 2014
Net Investment in capital assets $2,473,840,536 3 2,991,538,729 $3,398,712,773 $3,879,678,118 $3,788,956,243 $3,889,860,428 $4,157,311,051 3 4.172,534,685 $4,213.896,550 $4,278,898,454
Restricted for
Debt Service 8,172,744 5,842,813 26.937,291 28,235,089 28,523,676 28,802,266 30,327,489 29,482,154 29,834,800 30,249,638
Wetlands Mitigation
Expendable 14,048,767 13,048,502 11,552,393 13,790,936 16,476,384 23,272,435 23,290,831 22,168,650 21,723,599 22,584,805
Nonexpendable 7,030,157 7,230,157 7,538,957 7,687,077 10,262,096 12,707.836 13,988.620 14,016,126 14,037,630 14,967,099
Environmental Programs 26,097,971 40,830,660 49,828,254 57,195,146 51,814,854 233,501,723 267,486,175 278,835,411 287,183,215 290,189,479
Capital Construction - - - - - - 83,511,269 27,848,557 27,416,896 27,081,874
Totals for Resticted 55,349,639 66,952,132 95,856,895 106,908,248 107,077,010 298,284,060 398,604,384 372,350,898 380,196,140 385,052,895
Unrestricted 286,450,259 215,398,367 301,251,768 379,896,285 471,387,884 355,459,774 68,008,071 83,455,740 58,479,678 45,580,540 I
Total Net Position $2,795,640,434 $3,273,889,228 $3,795,821,436 $4,166,482,851 $4,367,421,137 $4,543,604,262 $4,623,923,506 $4,628,341,303 $4,652,572,388 5 4,709,531,889
' Ending net position restated by$41,053,487.
Total Net Position
$2,014 -
$2,012
•
IT
g 52,010
f $2,008 -
$2,006
1 $2,004
4 $2,002 -
$2.000 ,.. .,. _.. _.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
VI-2
Schedule 2
South Florida Water Management District
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2005 2008 2007 2008 2000 2010 2011 2012 2013 2014
Functions/Programs
Expenses
Land Stewardship S - 8 - S - $ - $ - $ - 8 - 3 17230,408 S 11,221.915 $ 13.762682
Mission Support - 115,901,217 128,467,596 103,599,908 105,245,086 114,123,630 121.213,117 59,451,321 46,556,301 45,166,915
Modeling and Scientific Support - - - - - - - 10229,236 10,775.378 11,572865
Operations and Maintenance - 91,518,678 97,480,318 146,532.283 133,417.655 122.380,621 134.014,814 130,821,218 135.936,264 114,290.803
Regulation - - - - - - - 20,980.963 22789,011 19,194.734
Restoration - 183,764.384 183,824,022 195,459,257 179,584,139 170.045,556 115.552,532 106,379.179 148.728,178 85.037.848
Water Supply - 71.239,720 77,191,322 73.680,009 50.853,964 30,375,078 28,085,557 15,498,110 14,127,405 17,464,823
Interest on Long-Term Debt - 5,862,342 25,466,282 27,496,071 26,880,613 26.264,799 25,608,163 24,896,558 26,521,567 23,272.985
Total Expenses 417.298,017 468,286,341 512,229.520 546,767,528 495,981.457 463,169,684 424,474,183 385.484,993 414,838,017 329,763,255
Program Revenues
Operating Grants&Contributions
Land Stewardship - - - - - - - 1,000,814 1,414,592 3,169,386
Mission Support - - - - - - - 784,356 487,103 3,833,388
Modeling and Scientific Support - - - - - - 20,170 27,206 25,955
Operations and Maintenance - 37.726.800 39,301,930 39,287,214 20270,144 4,291,272 3,993,318 9,852,785 14,351,306 16,552.486
Regulation - - - - - - - 26,945 21,511 16,865
Restoration - 1,304,033 16,326,983 21,103,303 11,061,814 20,087,646 23,810,358 4,824,792 7,897,125 17,319,769
Water Supply - 28,382,690 51,205,258 27,172174 7,655238 4,751 3,521,120 70,000 - 102,840
Total Operating Grants&Contributions 93 011,818 65,413,523 106,834,171 87,562.691 38,787,196 24,383,669 31,324,796 18,579,862. 24,198,843 41,020,689
Capital Grants&Contributions:
Land Stewardship - - - - - - - 32,827 46,065 -
Mission
Support - - 612,722 1,902,128 12,000 3,193,658 - 9,585,221 269,933 -
Operations and Maintenance - 13,656,578 21,986,733 54,381,178 7,806,297 21,301,044 12,560,490 - 85,415 -
Restoration - 388,432,012 262,837,217 191,915,979 53,211,727 80,199,258 10,797,605 45,705,508 52,662,666 65,112,460
Water Supply - 1,371,778 7,250 - - - - - - -
Total Capital Grants&Contributions 208,558,280 383,460,366 285,443,922 248,199,285 61.030.024 104,893,960 23,358,095 55,323,556 53,064,079 65,112,460
Charges for Services
Land Stewardship - - - - - - - 11,616,667 20,114,342 21,848,034
Mission Support - - - 148,175 99,733 10,379,191 11,278,950 9,140,164 10,978,092 12,035,727
Operations and Maintenance - - - 6,388,625 3,280,921 4.857,675 8,039,514 115,421 71,392 77,820
Regulation - - - - - - - 2,785,026 2,982,230 3,718,028
Water Supply - 11,805,719 12,761,049 4,630,694 6,061,734 5298,803 3,319,171
Total Charges for Services ■9,495,049 11,805,719 12,761.049 11.187,494 9,442,388 21.035.669 22,637,635 23.657,278 34,146,056 37,877,609
Total Program Revenues 311.065,147 460,679,808 405,039,142 346,929,470 109,259,608 150,113,298 77,320,526 95,560.696 111,408,978 143,810,758
Net (106,232,870) _ (7,608,733) (107,190,378) (199,838,058) (386,721,849) (313,056,386) (347,153,857) (289,904,297) (303,227,039) (185,952,497)
Page 1 of 2
VI-3
Schedule 2
South Florida Water Management District
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year
2006 2000 2007 2000 2009 2010 2011 2012 2013 2014
General Revenues
Tax
Property Taxes,Levied for General Purposes 325,825,399 386,282,388 476.628,776 475,621,991 451.384,521 394,194,577 347,234,986 236,860,170 232.838,276 233.527,102
Property Taxes,Levied for Everglades Contra 62,577,693 70.980.322 84,882.009 84,388.098 81 045,067 72,185,795 64,381,190 47,798,117 47.242.100 47,140,188
Investment Earnings 7,845,492 18,440431 47,506.508 37.834.818 28.483,350 14,467,902 13,693,847 8,611,844 385,038 8,058,186
Other 31.821.543 11,220.865 20,105.295 13.707,833 26,747,397 8,391,237 2.162,878 1,051,963 1.092.105 2,087,127
Gain on Sale of Capital Assets - 15,365,812 - - - - - - - -
Total General Revenues 428,070,127 502,289,818 629,122.586 611,552.740 587,680,335 489,239,511 427,472.901 294,322,094 281,557.519 288,812,603
Total Revenue 739,135,274 962.969,426 1.034161728 958.482.210 696,919,943 639,352,809 504,793,427 389.882,790 392,968,497 432,623,361
Charge In Net Poeillen $321,837,257 9 494,683,085 5 521,932,208 3 411,714,682 5 200,938,486 $176,183.125 9 80,319,244 5 4,417 797 S(21,669,520) S 102,860.106
Notes: In fiscal year 2006 the District changed its level of control.Due to fins change only totals will be presented for all years pnor to fiscal year 2008.
At the beginning of fiscal year 2012.the District reorganized its resource area and major program structure.
The increase in charges for services in the Mission Support program in fiscal year 2010 relates to services charged by the Self Insurance Fund and Health Insurance Fund,internal service funds.
Page 2 oft
•
VI-4
Schedule 3
South Florida Water Management District
Fund Balances,Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2005 2008 2007 2008 2009 2010 2011 2012 2013 2014
General Fund
Reserved $ 12,557,883 5 11,933,752 $ 9,776,476 $ 9,296,735 5 7,631,800 $ 11,120,668 $ - $ - $ - $ -
Unreserved 26,251,006 37,101,833 54,269,757 84,982,169 81,084,241 76,659,888 - - - -
Nonspendable - - - - - - - 201,145 201,145 -
Restricted - - - - - - 1,190,857 - - -
Committed - - - - - - 13,571,806 20,532,474 27,514,703 14,919,347
Assigned - - - - - - 50,267,731 48,616,088 32,914,652 42,477,518
Unassigned - - - - - - 22,761,839 12,774,338 2,485,387 6,022,833
Total General Fund 38,808,889 49,035,585 64,046,233 94,278,904 88,716,041 87,780,556 87,792,233 82,124,045 63,115,887 63,419,698
All Other Governmental Funds
Reserved 178,809,881 137,723,123 202,169,397 95,628,437 100,455,114 128,352,468 - - - -
Unreserved,reported in:
Special Revenue Funds 98,731,116 98,778,294 120,286,117 126,025,864 137,081,191 116,393,784 - - -
-
Capital Project Funds 30,963,011 113,473,976 497,274,716 504,835,607 572,503,303 523,243,561 - - - -
Permanent Fund 156,240 11,904 124,439 (902,266) (37,783) - - - - -
Nonspendable - - - - - - 19,858,805 20,196,060 20,088,942 20,685,277
Restricted - - - - - - 418,023,868 386,520,197 397,978,668 412,681,591
Committed - - - - - - 31,991,986 12,223,594 57,610 -
Assigned 32,464,433 ' 34,453,856 41,804,359 22,923,057
- -
- -
- -
Unassigned - - - - - - (13,880,130) (2,213,847) (73,179) (23,947,554)
Total All Other Governmental Funds 308,660,248 349,987,297 819,854,669 725,587,642 810,001,825 767,989,813 488,458,962 451,179,860 459,856,400 432,342,371
Grand Total $ 347,469,137 $ 399,022,882 $ 883,900,902 $819,866,546 $898,717,886 $855,770,369 $576,251,195 $533,303,905 $522,972,287 $ 495,762,069
Note: The District implemented GASB#54"Fund Balance Reporting and Governmental Fund Type Definitions"in fiscal year 2011.
The increase in fund balance in fiscal year 2007 is a result of the issuance of Certificates of Participation(COPS),Series 2006,in the amount of$546,120,000,the proceeds of which will be used
to provide funds for the construction of high priority projects.Details regarding the District's outstanding debt can be found in Note 10 of the financial statements.
$1,000
$800 -
8 $600
i
400
$20 . .ii01011
2005200620072008200920102011201220132014
Fiscal Yam
VI-5
Schedule 4
South Florida Water Management District
Changes in Fund Balances,Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
REVENUES
Ad Valorem Property Taxes $ 375053,364 E 445.749.903 5 549,849.748 $ 548.747.480 $ 520754.080 E 454.702.214 E 400,551.714 $ 273.150,566 $ 268,486,810 $ 269227,569
Agricultural Privilege Taxes 12349,728 11.512,807 11,661,037 11,282609 11.675,508 11,878,158 11.064.462 11,507,721 11,593566 11.439.721
Intergovernmental 301,439,509 448595226 204,806,608 286,478,999 97.309,288 92.069.137 67,888,578 44,507,437 37,455.441 85611,812
Investment Earnings 7.975081 18,716,094 47,506,507 37.834.818 28.483,350 14,404,749 15108508 8,294,234 353.207 5,890,856
Licenses,Permits and Fees 5,999,113 8,906,828 8,113,937 5,507.593 6.538,332 10,989.204 8,168,854 12,419,372 23,167,967 25,641,882
Self-Insurance Premiums 2.816,417 1.992.597 2,536.441 3,109,956 2.548,463 - - - - -
SaleofDistrictProperty 20.564.902 943,075 669,441 1,521.780 342,759 603,025 1,868,263 507,382 450251 274,146
Indirect Costs Recovered 4.388.282 4,250,305 5,814.975 8,460,722 8,885,448 5,445.432 5420,591 - - -
Leases 3096509 4,898,891 4,6447,111 5,850901 2,904,055 2,443,466 3,915,752 4,324,913 4,026,744 4,628,753
Other 3.551,069 4.034,888 11,714,828 1,502,932 11,173,458 2,934,236 895,996 959,735 922,227 1,995,553
Total Revenues 739.135.274 947.603,614 847,320,633 910,086,790 688,614,721 595,269,621 512,880,816 355,671,360 348,456,213 404,710,292
EXPENDITURES
Current Operating 404,980,082 - - - - - - -
Land Stewardship - - - - - - - 17.149,280 11,248.730 13,950,298
Mission Support - 112,631,686 109,436.655 107,521,245 102,689,836 97.584.202 94,765,560 46,183,905 35,441.098 30914.009
Modeling and Scientific Support - - - - - - 10,937,113 11,266,205 12,672042
Operations and Maintenance - 107,005,090 112,187,086 140,170,271 119,992,071 112.283.074 125.507,410 110,555,983 119.821,310 97,951,945
Regulation - - - - - - - 17,344,353 19,146,260 18,271,802
Restoration - 199,738,140 256,087,796 226,347,719 148,745,910 157,002,200 129,413,639 70,143,349 66.650.596 76,192,109
Water Supply - 71,040,556 77,119,810 73,702,317 50649563 32,559,823 32.328,114 10.398,423 9,627.209 8,828.114
Capital Outlay 284,130,917 475,145,947 274,226,563 379.030.673 143,189.182 183,126,292 370,729,580 66,970,460 48,449,472 128,064,854
Debt Service
Bond Principal Retirement 3,260,000 4.500,000 4,660,000 4,785.000 4,975,000 5,190,000 5,415.000 5,655,000 5865,000 6,120,000
Bond Interest and Other Fiscal Charges 2,583,429 2,444,126 2,303.401 2,143,086 1,940,171 1,722,396 1,489,721 1,285,749 1,035,786 768,598
1 Bank Loan Principal Payments 4,872,193 3,577,553 86,847,342 3,247.469 1,832,482 1,832,482 2,975,339 1,142,857 - -
Bank Loan Interest 610.763 740,199 580,847 390,991 279,620 206,172 180,724 19,867 - -
Bond Issuance Costs - - - - - _ - - - -
Defeasance Costs - - - - - - - - - -
Capgal Lease Principal Payments 1,296,990 1,144,988 988,060 502,187 193,161 200,330 - - - -
Capital Lease Interest 98,004 81,584 53,983 25,894 12,712 5,543 - - - -
COPS Principal Retirement - - - 7675,000 0015,000 9,370,000 9,705000 10,135,000 10,610,000 11,060,000
COPS Interest - - 10,091,807 26,579,294 26,268,593 25,923,548 25,539,177 25,088,037 24,626,167 24,125,840
Total Expenditures 701,832,378 978,049,869 934,583,350 974,121,146 609,763,401 627,006,080 798,049,264 392,969,376 383,787,831 431,920,511
Revenues or Excess of(Less Then)Expenditures 37,302,896 (30,446,255) (87,242,717) (64,034,356) 78,851,320 (31,736,439) (285,168,448) (37,298,016) (17,331,618) (27,210,219)
Page 1 of 2
VI-6
Schedule 4
South Florida Water Management District
Changes In Fund Balances,Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2005 2008 2007 2008 2009 2010 2011 2012 _ 2013 2014
OTHER FINANCING SOURCES(USES)
Transfers In 142,255,948 212,798,171 281,893,797 214,646,804 454,498,325 183,744,472 143,735,575 72,862,774 110,969,774 144,193,867
Transfers Out (142,255,948) (212,798,171) (261,893,797) (214,646,804) (454,498,325) (174,955,529) (143,735,575) (72,862,774) (103,969,774) (144,193,867)
Land Acquisition Refunding Bonds Issues
Proceeds of Bond Issuance - - _ - - - - - -
Premium on Bonds Issued - - 26,081,797 - - - - - -
Discount on Bonds Issued - - (81,060) - - - - - _ -
Payment toBondEscrowAgent - - - _ -
- _ -
-
Proceeds of Bank Loan 8,000,000 82,000,000 - - - - _ - - -
Proceeds of Capital Leases 939,583 - - - - - - - - -
Proceeds of Certificate of Participation(COPS) - - 548,120,000 - - _ - - - -
Total Other Financing Sources(Uses) 8,939,583 82,000,000 572,120,737 - - (11,211,057) - - 7,000,000 -
Net Change in Fund Balance $ 48,242,479 $ 51,553,745 $ 484,878,020 $j64,036) $ 78,851,320 $ (42,947,496) $ (285,168,448) $ (37,298,016) $. (10,331,618) $ (27,210,219)
Debt Service as a percentage of noncapital 2.88% 2.65% 26.02% 8.42% 8.51% 9.57% 11.11% 13.28% 13.36% 13.85%
expenditures'
Notes: At the beginning of fiscal year 2012 the District reorganized its resource area and major program structure.
Beginning in fiscal year 2012 the District changed its method of recording indirect cost recoveried and these amounts are netted against the original associated costs.
Beginning in fiscal year 2010 the District established an internal service fund to account for workers compensation,auto and general liability insurance. As such,premium revenues are
now reported in the Self-Insurance Fund.
The increase in the debt service ratio in fiscal year 2007 is due to the issuance of Certificates of Participation(COPS),Series 2006,in the amount of 5546,120,000.Details regarding the
District's outstanding debt can be found in Note 10 of the financial statements.
' For purposes of calculating debt service as a percentage of noncapital expenditures,noncapital expenditures excludes expenditures that are classified as capital outlay on the government-
wide financial statements,which may be different than those shown above.The noncapital expenditure amount used in the calculation is determined by subtracting the capital outlay amount
shown on the Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities(see page III-11)from the
total expenditure amount shown above.
Page 2 of 2
VI-7
Schedule 5
South Florida Water Management District
Revenues by Source
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year
2005 2008 2007 2008 2009 2010 2011 2012 2013 2014
Property Taxes $ 376,053,364 $ 445,749,903 $549,849,748 $ 548,747,480 $520,754,080 $454,702,214 $400,551,714 $ 273,150,566 $268,486,810 $269,227,569
Agricultural Privilege Taxes 12,349,728 11512,807 11561,037 11,262,609 11575508 11,678,158 11564,462 11,507,721 11,593,566 11,439,721
Intergovernmental 301,439,509 448,598,226 204,806,608 286,478,999 97,309,268 92,069,137 67,888,578 44,507,437 37,455,441 85,611,812
Investment Earnings 7,976,081 18,716,094 47,506,507 37,834,818 28,483,350 14,404,749 13,108,606 8,294,234 353,207 5,890,856
Licenses,Permits&Fees 5,999,113 6,906,828 8,113,937 5,507,593 6,538,332 10,989,204 8,166,854 12,419,372 23,167,967 25,641,882
Leases 3,996,809 4,898,891 4,647,111 5,659,901 2,904,055 2,443,466 3,915,752 4,324,913 4,026,744 4,628,753
Other 31,320,670 11,220,865 20,735,685 14,595,390 20,950,128 8,982,693 8,184,850 1,467,117 1,372,478 2,269,699
Total $ 739,135,274 $ 947,603,614 $847,320,633 $ 910,086,790 $688,614,721 $ 595,269,621 $512,880,816 $ 355,671,360 $346,456,213 $404,710,292
VI-8
Schedule 6
South Florida Water Management District
Property Tan Revenue by County
Last Ten Fiscal Years
(in Thousands)
Fiscal
Year Broward Charlotte• Collier Miami-Dads Glades Hendry Highlands' Lee
2005 S 77,187 $ 75 8 26,063 8 99,372 8 298 $ 2,903 S 382 $ 33,775
1987% 0.02% 8.71% 25.58% 0.08% 0.75% 0.08% 8.70%
2006 89,586 105 31,274 116,767 366 2,834 380 43,411
1959% 0.02% 884% 25.54% 0.08% 0.62% 0.08% 9.49%
2007 105,682 117 39,245 139,563 513 3,232 672 60,215
18.82% 0.02% 6.08% 24.85% 005% 958% 0.12% 10.72%
2008 108,200 222 38,430 145,653 449 3,103 555 58,010
1898% 0.04% 6.88% 28.01% 0.08% 055% 0.10% 10.38%
2009 101,545 96 36,569 143,415 410 2,900 538 50,973
19.07% 0.02% 8.87% 26.94% 0.08% 0.54% 0.10% 9.57%
2010 88,823 83 32,370 129,243 384 2,746 470 39,242
1905% 0.02% 694% 2771% 0.08% 0.59% 0.10% 8.41%
2011 77,688 72 28,407 113,386 356 2,593 427 33,482
1887% 002% 8.90% 27.55% 0.090% 0.83% 0.10% 813%
2012 52,960 48 19,370 77,486 251 2,177 276 22,653
18.81% 0.02% 6.60% 2721% 0.09% 0.78% 0.10% 796%
2013 52,800 46 19,197 75,483 239 2,175 302 22,142
1885% 002% 585% 2694% 0.09% 0.76% 0.11% 7.91%
2014 52,312 42 19,217 77,324 217 2,154 278 21,755
18.84% 0.01% 8.85% 2755% 0.08% 0.77% 0.10% 7.75%
•Amounts represent property taxes only for the portion of the county that is within the District's boundaries. Page 1 of 2
VI-9
Schedule 6
South Florida Water Management District
Property Tax Revenue by County
Last Ten Fiscal Years
(n Thousands)
Fiscal
Year Martin Monroe Okeechobee• Orange• Osceola• Palm Beech Polk• St.Lucie Total
2005 5 10,414 $ 11,716 5 910 $ 20,766 S 9,119 S 85,636 6 595 8 9,212 8 388,403
2.68% 3.02% 0.23% 5.35% 235% 2205% 0.15% 237% 100.00%
2006 12,413 14,878 1,016 22,945 10,888 98,021 790 11,809 457,263
2.71% 3.21% 0.22% 502% 2.38% 21.45% 0.17% 258% 100.00%
2007 13,846 17,907 1,481 28,104 14,495 118,700 1,322 16,418 561,510
2.47% 3.19% 0.26% 501% 2.58% 21.14% 0.24% 2.92% 10000%
2008 13,724 17,254 1,399 29,268 15,810 112,805 1,568 15,560 560,010
2.45% 3.06% 0.25% 523% 2.82% 2015% 0.28% 2.78% 100.00%
2009 12,370 15,932 1,218 29,852 15,614 106,580 1,446 12,974 532,430
2.32% 290% 023% 561% 2.93% 20.02% 027% 2.44% 100.00%
2010 11,279 13,614 1,140 26,985 13,017 95,642 1,104 10,238 468,380
2.42% 2.92% 024% 579% 2.79% 20.51% 0.23% 2.20% 100.00%
2011 10,582 11,915 891 24,122 10,901 86,691 818 9,285 411,616
257% 2.89% 022% 586% 2.65% 21.06% 0.20% 2.26% 100.00%
2012 7,196 7,928 599 16,950 7,093 62,997 524 6,170 284,658
2.53% 2.79% 0.21% 595% 249% 22.13% 0.18% 217% 100.00%
2013 7,130 7,871 610 16,881 6,863 82,021 516 6,025 280,080
255% 281% 022% 596% 245% 2213% 0.18% 215% 10000%
2014 6,790 7,649 582 16,676 7,325 61,656 522 6,170 280,687
242% 2.73% 0.21% 594% 201% 21.95% 0.19% 220% 100.00%
•Amounts represent property taxes only for the portion of the county that is within the District's boundaries. Page 2 of 2
VI-lo
Schedule 7
South Florida Water Management District
Direct Property Tax Rates
Last Ten Fiscal Years
(Rate per$1,000 of assessed value)
Okeechobee Basin Big Cypress Basin
Year District Basin Total District Basin Total
2005 0.2840 0.4130 0.6970 02840 0.2425 0.5265
2006 02840 0.4130 08970 02840 0.2425 08265
2007 02840 0.4130 0.6970 02840 02425 08265
2008 02549 0.3691 0.6240 02549 0.2265 0.4814
2009 02549 0.3691 0.6240 02549 0.2265 0.4814
2010 02549 0.3691 0.6240 02549 0.2265 0.4814
2011 02549 0.3691 0.6240 0.2549 02265 0.4814
2012 0.1785 02578 0.4363 0.1785 0.1633 0.3418
2013 0.1757 02532 0.4289 0.1757 0.1633 0.3390
2014 0.1685 02425 0.4110 0.1685 0.1593 0.3278
Notes: Since South Florida Water Management District is a regional governmental unit,it is not reasonable to present
overlapping property tax rates.
The reduction of property tax rates in fiscal year 2008 is a result of the passage of House Bill 1-B,which required a
reduction in taxes by all local governments and special taxing districts.
The reduction of property tax rates in fiscal year 2012 is a result of the passage of Senate Bill 2142,which limited the
total ad valorem taxes that could be levied by the District.
State law limits the combined District-at-Large and basin tax millage for each of the two basins at 0.8 mills($0.80 per
$1,000 of taxable value).The state constitutional limit is slightly higher at 1 mill($1.00 per$1,000 of taxable value).
Source: South Florida Water Management District Budget Bureau.
VI-11
Schedule 8
South Florida Water Management District
Property Tax Collections
Last Ten Fiscal Years
Big
Fiscal District Ohse Cypress
Year Wide Basin Basle Collections within Collection
Ended Tax Tax Tax Total Tax the Fiscal Year Percentage of Prior Total Collections Percentage
Sept.30 Rate Rate Rate Levy of the Levy of Levy Year Taxes' to Date of Levy'
2005 02840 0.4130 02425 $ 375,371,188 $ 372,357,871 99.2% $ 2,696,744 5 375,054,615 99.9%
2006 0.2840 0.4130 02425 444,075,931 423,518,333 95.4% 2,090,550 425,608,883 95.8%
2007 02840 0.4130 02425 553,009,838 553,009,740 100.0% 3,623,093 558,459,133 101.0%
2008 02549 0.3691 0.2265 549,484,359 539,248,357 98.1% 5,829,932 545,078,289 99.2%
2009 0.2549 0.3691 02265 525229,365 514,311,078 97.9% 5,256,004 519,567,082 98.9%
2010 02549 0.3691 02265 459,945,322 442,168,909 96.1% 11,526,724 453,695,633 98.6%
2011 0.2549 0.3691 02265 399,025,958 384,381,001 96.3% 18,915,088 403,296,089 101.1%
2012 0.1785 02578 0.1633 270,685,220 268,398,410 99.2% 6,535,361 274,933,771 101.6%
2013 0.1757 0.2532 0.1633 268,114,920 261,778,333 97.6% 4,988,476 266,766,809 99.5%
2014 0.1685 0.2425 0.1593 267,142,178 265,299,466 99.3% 4,019,743 269,319,209 100.8%
NOTE: During fiscal year 2009 tax collections were received at a slower rate than typical,which caused an increase of prior year's cash collections
in fiscal year 2010.
'Reflects taxes collected during the year that were levied in prior years.Not all tax collectors provide information sufficient to distinguish prior year
tax collections by year that the tax was levied.
'Includes taxes collected for the current year levy plus collections of taxes that were levied in prior years.As such collections could be greater than
100%of the taxes levied during the year.
VI-12
Schedule 9
South Florida Water Management District
Taxable Property Values and Just Values of Taxable Property by County
Current Fiscal Year
Taxable Value
as a percentage
County Just Value' Taxable Value 2 of Just Value
Broward $ 185,676,484,234 $ 132606,617,746 71.42%
Charlotte• 149279,688 105,191,491 70.47%
Collier 74,164,539,075 60,812,999,127 82.00%
Glades 3,209,182,647 546,562,730 17.03%
Hendry 5,132,755,461 1,705,020,243 3322%
Highlands• 1,027,597.735 678,967,208 66.07%
Lee 72,538,308,587 55,011,362,832 75.84%
Martin 23,594,340,009 17,223,760,068 73.00%
Miami-Dade 272,875,367990 199,108,798,213 72.97%
Monroe 27,422,667,507 19,223,066,060 70.10%
Okeechobee• 2,403,363,448 1,407,992,438 58.58%
Orange• 57,562291,298 42,150,717,378 73.23%
Osceola• 27,213,904,304 17,133,158,323 62.96%
Palm Beach 171,884,068,213 130,671,532,065 76.02%
Polk• 1,930,653,216 1,304,817,306 67.58%
St.Lucie 22,970,680,525 15,188,168,306 66.12%
$ 949,755,483,837 $ 694,878,731,534 73.16%
• County is only partially within the District's boundaries.
•
' Source:Florida Department of Revenue,Florida Property Valuations and Tax Data Book.
Partial county just value is calculated based on the percentage of taxable value that is within the
District's boundaries compared to the taxable value of the whole county.
Just value is a legal synonym for"full cash value"or"fair market value".
Source:South Florida Water Management District Budget Department,FY 2014 Budget.
Taxable value is defined as assessed value which has been adjusted for any exemptions provided
by the State Constitution.
VI-13
Schedule 10
South Florida Water Management District
Taxable Value of Property
Last Ten Fiscal Years
Okeechobee Total
Centrally District Basin Direct
Fiscal Real Personal Assessed Tax Tax Tax
Year Properly' Property 5 Properly' Total Rata C Ride' Rate °
2005 S 535,652,622,464 $ 37,581256,994 S 249,689,014 $ 573,483,568,472 2.84 4.13 6.97
2006 639,271,283,210 39,061,362,113 270,717,328 678,603,362,651 2.84 4.13 6.97
2007 803,519,922,519 41,423,176,998 284238,697 845227,338214 2.84 4.13 6.97
2008 892,858,395,941 42,892,968,298 300,886,190 936,052,250,429 2.55 3.69 624
2009 853,857,161,850 40,515,829,852 369,348,354 894,742,340,056 2.55 3.69 624
2010 742,675,388,669 40,715,092,253 399,210,940 783,789,691,862 2.55 3.69 624
2011 645,555,800,822 41,283,680,011 312,424,992 687,151,905,825 2.55 3.69 6.24
2012 625,090,457,818 40,201,298,218 323,038,790 665,614,794,826 1.79 2.58 4.37
2013 628,500,005,272 41,359,190,647 347,320,003 670,206,515,922 1.76 2.53 429
2014 650,125,288,770 44,379,393,336 374,049,428 694,878,731,534 1.69 2.43 4.12
Note: Since the District applies its tax rates to the taxable value of property,the taxable value has been shown in this schedule.Taxable value
is defined as assessed value which has been adjusted for any exemptions provided by the State Constitution.Valuations are as of
January 1 on the calendar year preceding the applicable District fiscal year.
' Real property refers to land,land improvements.and any buildings or structures located on the land.
2 Personal properly includes property that can be moved from one location to another.
o Centrally assessed property generally refers to properties that are assessed as a whole anti.A railroad is an example of centrally assessed
property.
° Tax rates are per 51,000 of assessed value.
5 Tax rates are per$1,000 of assessed value.Total direct tax rate represents the rate in 15 of the District's 16 counties.Collier County is
the District's only county which is not geographically located in the Okeechobee Basin.
Source: South Florida Water Management District Budget Bureau,Form DR-420s.
VI-14
Schedule 11
South Florida Water Management District
Assessed Value Per Capita
Last Ten Calendar Years
Calendar Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Assessed Property Value $ 573.5 $ 678.6 $ 845.2 $ 936.1 $ 894.7 $ 783.8 $ 687.2 $ 665.6 5 670.2 $ 694.9
(in Billions)
Distract Population' 7,199,934 7,359,852 7,504,525 7,617,705 7,648,679 7,609,852 7,615,687 7,669,381 7,811,608 7,986,730
Assessed Property Value $ 79,654 $ 92,205 $ 112825 $ 122,885 $ 116,974 $ 102,998 $ 90,235 $ 86,787 $ 85,795 $ 87,007
Per Capita
Assessed value is as of January 1st for real,personal and centrally assessed property located within the boundaries of the District.
r Population data is from The Office of Economic 8 Demographic Research and has been adjusted for counties with boundaries only partially within the District.
Assessed Property Value Per Capita
$140,000
$120,000
$100,000
�$80,000
$60,000
$40,000
$20,000
0-
2004 2005 2008 2007 2008 2009 2010 2011 2012 2013
Veer
VI-15
Schedule 12
South Florida Water Management District
Principal Property Tax Payers
Current Year and Eight Years Prior
2014 2006
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Florida Power&Light Company $ 12,284,891,748 1 1.77% $ 6,331,743,321 1 0.93%
Walt Disney Company 8,037,161,628 2 1.16% 6,194,118,181 2 0.91%
Duke Energy 2,192,136,877 3 0.32% 1,565,314,671 3 0.23%
Universal Studios 1,490,000,000 4 0.21% 580,584,834 7 0.09%
Westgate Resorts 1297,038,153 5 0.19% 1,001,813,446 6 0.15%
BellSouth Telecommunications Inc 1,177,312,951 6 0.17% 1,261,567,853 5 0.19%
Marriott Corporation 1,140,000,000 7 0.16% 396,000,000 10 0.06%
Hilton Corporation 822,700,000 8 0.12% 1,401,827,566 4 021%
Wyndham Resorts 793,023,853 9 0.11% - -
Orange Lake Contry Club 705,800,000 10 0.10% - -
Florida Power Corporation' - - 572,654,709 8 0.08%
R H Resorts/Rosen Hotels - - 418,720,980 9 0.06%
Totals $ 29,940,065,210 4.31% $ 19,724,345,561 2.91%
Notes: Amounts represent assessed value as of January 1 of the year presented.The amounts shown reflect county totals even though some
counties may only partially be within the Districts boundaries.
The earliest year for which this data is available is fiscal year 2006.As such,2006 will be the base year for comparison.
1 Florida Power Corporation now operates as Duke Energy.
Source: Data was obtained from the Tax Collector or Property Appraiser for the sixteen counties that are included in South Florida
Water Management District's geographical boundaries.
VI-16
Schedule 13
South Florida Water Management District
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Governmental Activities
Year Land Land Total Percentage Percentage
Ended Acquisition Purchases Capital Bank Certificates of Outstanding of Personal Per of Assessed
Sept.30 Bonds-WMLTF' Payable Leases Loans Participation Debt Income' Capita. Value'
2005 $ 62,320,524 $100,108,087 $ 3,008,733 $ 19,456,880 $ - $ 184,894,224 0.0734% 25.12 0.0322%
2006' 57,758,545 77,679,516 1,863,645 97,878,527 - 235,180,233 0.0858% 31.34 0.0347%
2007 52,025278 40,219,445 895,678 11,031,537 568,849,724 673,021,662 0.2347% 88.35 0.0796%
2008 47,361,563 40,910,434 393,491 7,783,160 561,239,106 657,687,754 0.2235% 85.99 0.0703%
2009 42,022,941 - 200,330 5,950,678 550,476,399 598,650,348 02025% 78.67 0.0669%
2010 36,642,406 - - 4,118,196 539,399,546 580,160,148 0.1965% 76.18 0.0740%
2011 31,098,4W - - 1,142,847 528,053,493 560,294,806 0.1806% 73.06 0.0815%
2012 25,308,815 - - - 516,359,621 541,668,436 0.1619% 69.34 0.0814%
2013 19,333,395 - - - 504,232,927 523,566,322 0.1554% 66.34 0.0781%
2014 13,138,839 - - - 491,760,427 504,899,266 0.1459% 63.22 0.0727%
Note: Details regarding the Distncrs outstanding debt can be found in the notes to the financial statements.
' During fiscal year 2006,the District utilized short-term bank financing.
WMLTF stands for Water Management Lands Trust Fund.
' Refer to Schedule 15 for personal income information.
a Refer to Schedule 15 for population information.
'Refer to Schedule 10 for assessed value information.
VI-17
Schedule 14
South Florida Water Management District
Pledged-Revenue Bond Coverage
Last Ten Fiscal Years
Revenue Debt Service
Documentary Allocated
Fiscal Stamp Civil Interest Total Total Coverage
Year Taxes Penalties Income Revenue Principal Interest Debt Service Ratio
2005 $ 40,825,275 $ 641,382 $ 1,004,100 $ 42,470,757 $ 3,260,000 $ 2,583,429 $ 5,843,429 7.27
2006 40,437,784 556,170 1,829,897 42,823,851 4,500,000 2,444,126 6,944,126 6.17
2007 34,619,597 810,573 1,042,873 36,473,043 4,660,000 2,303,401 6,963,401 5.24
2008 15,193,803 1,037,381 1,507,927 17,739,111 4,785,000 2,143,086 6,928,086 2.56
2009 10,909,497 450,011 522,616 11,882,124 4,975,000 1,940,171 6,915,171 1.72
2010 13,972,497 46,147 437,404 14,456,048 5,190,000 1,722,396 6,912,396 2.09
2011 15,760,042 12,956 208,320 15,981,318 5,415,000 1,489,721 6,904,721 2.31
2012 7,354,939 20,000 183,055 7,557,994 5,655,000 1,265,749 6,920,749 1.09
2013 13,775,608 18,081 168,925 13,962,614 5,865,000 1,035,786 6,900,786 2.02
2014 10,652,283 24,835 175,378 10,852,496 6,120,000 768,598 6,888,598 1.58
Source: Florida Department of Environmental Protection,Water Management Lands Trust Fund,Bureau of Finance and Accounting Contracts
Disbursements Section and District accounting records.
Revenue&Debt Service
$45,000
$40,000
ic $35,000
$30,000
$25,000 CO Revenue
€ $20,000 ■Debt Service
$15,000
1. $10,000
E $5,000
a $0 .f• io-= i I:. / i. 4. I'_ 4.-.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
VI-18
Schedule 15
•
South Florida Water Management District
Demographic and Economic Statistics
Last Ten Calendar Years
Personal Per Capita School
Calendar Income Personal Enrollment Unemployment
Year Population h (In thousands)' Income K-1e Rate'
2005 7,359,652 $251607,469 8 34,228 1,102,719 4.0%
2006 7,504,525 274,090,198 36,523 1,124,773 3.4%
2007 7,617,705 286,718,796 37,638 1,082,297 4.4%
2008 7,648,679 294,230,623 38,468 1,071,876 6.1%
2009 7,609,852 295,589,133 38,843 1,073,728 10.6%
2010 7,615,667 295,290,827 38,774 1,084,184 11.7%
2011 7,669,381 310,253,970 40,454 1,096,048 10.5%
2012 7,811,608 334,574,240 42,830 1,109,444 8.7%
2013 7,881,851 336,889,341 42,688 1,122,567 74%
2014 7,986,730 345,991,092 43,321 1,136,965 62%
Note: Data has been adjusted for counties with boundaries only partially within the District.
h Population data is from The Office of Economic&Demographic Research.See Schedule 16 for details on population.
r Source:Regional Economic Information System,Bureau of Economic Analysis,US Department of Commerce.
Final data for calendar year 2014 is currently unavailable.The figure shown for calendar year 2014 estimates 4th quarter
results as an average of the first three quarters.Fiscal year 2013 data has been updated using final figures.
'Student enrollment data is obtained from the Florida Department of Education.Enrollment figures are based on
the fall enrollment number for the calendar year specified.
° Source:Bureau of Labor Statistics-http://www.bls.gov/lau/home.
VI-19
Schedule 16
South Florida Water Management District
District Population by County
Last Ten Calendar Years
Calendar Year
2005 2000 2007 2008 2009 2010 2011 2012 2013 2014
Broward 1,740987 1,753,162 1,765,707 1,758,494 1,744,922 1,742,891 1,748,066 1,771,099 1,784,715 1,803,903
Charlotte• 770 802 823 6,300 6,287 6,302 6,079 6,208 6,220 6,250
Collier 317,788 326,658 333,858 332,854 333,032 333,554 321,520 329,849 333,663 336,783
Miami-Dade 2,422,075 2,437,022 2,462,292 2,477,289 2,472,344 2,476,289 2,496,435 2,551,290 2,582,375 2,613,692
Glades 10,729 10,796 11,055 11,323 11,311 11,330 12,884 12,671 12,658 12,852
Hendry 38,376 38,678 39,651 41,216 41,320 41,026 39,140 38,132 37,808 37,895
Highlands' 9,626 9,957 10,169 8,718 8,675 8,677 8,594 8,609 8,621 8,684
Lee 549,442 585,608 615,741 623,725 615,124 616,626 618,754 638,029 643,367 653,485
Martin 141,059 142,645 143,737 143,868 143,856 143,848 146,318 147,203 148,077 148,585
Monroe 82,413 80,510 78,987 76,081 77,925 78,150 73,090 72,897 73,560 74,044
Okeechobee' 37,010 37,893 38,249 39,203 38,909 38,918 39,196 39,009 38,967 39,031
Orange• 260,859 269,881 276,401 269,825 268,349 268,860 277,321 284,578 291,121 297,175
Osceola• 234,451 255,135 285,325 270,972 270,060 270,541 265,998 278,057 285,477 292,597
Palm Beach 1,265,900 1,287,987 1,295,033 1294,654 1287,344 1,286,778 1,320,134 1,335,415 1,345,652 1,360,238
Polk' 8,128 8,476 8,716 17,572 17,530 17,514 18,063 18,207 18,419 18,695
St.Lucie 240,039 259,315 271,961 276,585 272,864 274,363 277,789 280,355 281,151 282,821
Total 7,359552 7504525 7,617,705 7646679 7609,852 7,615,667 7,669,381. 7,811,608 7.891.851 7,986,730
•County is only partially within the District's boundaries.Population is prorated based on estimated population within the geographic boundaries of the District.
Source:The Office of Economic 8 Demographic Research-Florida Demographic Database(2004-2010).
Source:University of Florida,Bureau of Economic and Business Research(2011-2013).
VI-20
Schedule 17
South Florida Water Management District
Employment Data
Last Ten Calendar Years
Calendar Total Unemployment
Year Labor Force Employed Unemployed Rate(%)
2005 3714548 3,564,785 149763 4.0
2006 3,815,337 3,686,457 128,880 3.4
2007 3,855,439 3,685,668 169,771 4.4
2008 3,844,561 3,610,123 234,438 6.1
2009 3,844,536 3,438,418 406,118 10.6
2010 3,876,208 3,423,749 452,459 117
2011 3,857,912 3,454,296 403,616 10.5
2012 3,973,042 3,629,273 343,769 8.7
2013' 4,017,108 3,720,853 296,255 74
2014' 4,091,033 3,837,176 253,857 62
Note: Data has been adjusted for counties with boundaries only partially within the District.
'Figures have been updated to reflect revised inputs and reestimation.
'Final data for the calendar year 2014 is currently not available.The 2014 figures
are based on the yearly average,through November,2014.
Source: Bureau of Labor Statistics-http://www.bls.gov/tau/home.
VI-21
•
Schedule 18
South Florida Water Management District
Ten Largest Employers within District Boundaries
Prior Calendar Year and Nine Years Prior
2013 2004
Number of %of Total Number of %of Total
Employers Rank Employees Employment Employers Rank Employees Employment
Walt Disney World Co. 1 69,700 1.9% Walt Disney World Co. 1 54,450 1.6%
Miami-Dade County Public Schools 2 33,477 0.9% Miami-Dade County Public Schools 2 54,387 1.6%
Broward County School Board 3 26,000 0.7% Broward County School Board 4 36,853 1.1%
Miami-Dade County 4 25,502 0.7% Miami-Dade County 5 32,265 0.9%
Publix Supermarkets 5 23,390 0.6% Publix Supermarkets 8 18,100 0.5%
Orange County Public Schools 6 21,984 0.6% Orange County Public Schools 6 23,000 0.7%
Palm Beach County School Board 7 20,810 0.6% Palm Beach County School Board 7 18,672 0.5%
Adventist Health Systems 8 17,600 0.5% Adventist Health Systems 3 44,000 1.3%
Universal Studios 9 16,500 0.4% Universal Studios 10 12,787 0.4%
Orlando Health 10 15,867 0.4% Orlando Health - - -
Broward County Govemment - - - Broward County Government 9 13,914 0.4%
Total 270,830 7�3% Total 308,428 99®0%
Total Employment in District Boundaries 3,720,853 Total Employment in District Boundaries 3,422,407
Notes: Schedule excludes any county partially within the District boundaries that contributes less than 1%of total property tax revenue. Employers
located in partial counties are scheduled at full employee count. Schedule excludes federal and state employees.
Source:Individual County Comprehensive Annual Financial Reports,where available.
Employment detail for 2013 is shown on Schedule 17.
VI-22
Schedule 19
South Florida Water Management District
Authorized Positions per 100,000 Population
Last Ten Calendar Years
Calendar Year
2005 2000 2007 2008 2009 2010 2011 2012 2013 2014
Number of Authorized Positions' 1,771 1,771 1,784 1,808 1528 1,842 1,933 1551 1520 1588
Population` 7,359,652 7,504,525 7,617,705 7,648,679 7,609,852 7,615,667 7,669,381 7,811,608 7591,851 7,986,730
Authorized Positions per 24 24 23 24 24 24 25 21 21 20
100,000 Population
' Number of authorized positions is a measurement utilized for budgeting purposes that includes both filled positions and planned positions.Each authorized position
is equal to one full-time employee.
2 Population data is horn The Office of Economic 8 Demographic Research and has been adjusted for counties with boundaries only partially within the District.
Details regarding population figures can be found on Schedule 16.
VI-23
Schedule 20
South Florida Water Management District
District Employees by Resource Area and Major Program
Current Fiscal Year
Number of Percentage of Percentage of
Resource Area I Employees Employees per Employees
Major Program per Program' Resource Area District-wide
Administrative Services and Executive Offices
Land Stewardship 1 031% 0.07%
Mission Support 190 59.75% 13.05%
Modeling and Scientific Support 11 3.46% 0.75%
Operations and Maintenance 51 16.04% 3.50%
Regulation 19 5.97% 1.30%
Restoration 46 14.47% 3.16%
Administrative Services and Executive Offices Total 318 100.00% 21.83%
Operations,Maintenance,and Constriction
Land Stewardship 40 5.41% 2.75%
Mission Support 5 0.68% 034%
Modeling and Scientific Support 19 2.57% 1.30%
Operations and Maintenance 561 75.81% 38.50%
Regulation 1 0.13% 0.07%
Restoration 113 15.27% 776%
Water Supply 1 0.13% 0.07%
Operations,Maintenance,and Construction Total 740 100.00% 50.79%
Regulation
Regulation 151 88.82% 10.37%
Restoration 19 11.18% 1.30%
Regulation Total 170 100.00% 11.87%
Water Resources
Modeling and Scientific Support 79 34.50% 5.42%
Restoration 102 44.54% 7.00%
Water Supply 48 20.96% 3.29%
Water Resources Total 229 100.00% 15.71%
District Total 1,457 100.00%
' Number of employees includes all filled positions(including shared positions)at the end of the fiscal year.
VI-24
•
Schedule 21
South Florida Water Management District
District Employees by Major Program
Last Nine Fiscal Years
Fiscal Year District Employees by Major Program
Current Fiscal Year
Major Program 2006 2007 2008 2009 2010 2011 2012 2013 2014
Land Stewardship 48 47 50 46 43 37 38 43 41 110
Mission Support 431 427 438 445 445 321 284 214 195
Modeling&Scientific Support 120 121 114 121 124 113 102 109 109
Operations and Maintenance 578 575 603 601 615 573 625 643 612
Regulation 174 179 189 182 193 167 178 182 171
Restoration 313 332 340 338 331 320 294 301 280
Water Supply 66 61 62 61 53 36 46 52 49
District Total 1,730 1,742 1,796 1,794 1,804 1,567 1,567 1,544 1,457 ■Land Stewardship •Mission Support
In Modeling&Scientific Support UOperatons and Maintenance
•Regulation ■Restoration
•Water Supply
Notes: During fiscal year 2012 the District reorganized its resource area and major program structure.The prior year's data
has been adjusted to present the data in the current fiscal year's structure.
During fiscal year 2006 the District underwent a major reorganization,affecting the resource area and major program structure.
Due to that restructuring,information will be provided for fiscal year 2006 and forward.
VI-25
Schedule 22
South Florida Water Management District
Permit Applications Received
Last Ten Fiscal Years
Fiscal Year
Permit Category 2005 2008 2007 2008 2009 2010 2011 2012 2013 2014
Environmental Resource 2,690 2,706 2,229 1,673 1,423 1517 1556 2,232 2,094 2,114
Consumptive Use 2,541 2,503 3,806 3,037 2,638 2,818 2,144 1,970 1,737 1,964
SWIM 8 Everglades Works Of The District 20 78 51 12 4 5 26 33 6 14
Total Applications Received 5,251 5,287 6,086 4,722 4,065 4,740 3,826 4,235 3,837 4,092
Note: During fiscal year 2010 the District began to include minor permit application activities as workload indicators.This change in process also changed
how permit applications are counted by the District.The permit application data shown has been adjusted retroactively to reflect this change.
Source: Regulation Division of South Florida Water Management District.
VI-26
Schedule 23
South Florida Water Management District
Water Moved by District Pump Stations
Last Ten Fiscal Years
Fiscal Year
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Acre-Feet 3,938 3,583 1,272 3,768 3,660 3,032 1,584 3,254 4,419 3,604
(Thousands)
Note: The decrease in fiscal years 2007 and 2011 is due to severe drought conditions experienced in South and
Central Florida during those years.
Source: Operations,Engineering&Construction Division of South Florida Water Management District.
Water Moved
5,000
4,500
,.,
4,000
°ra
3,500
3,000 •
2,500
2,000
E 1,500
1,000
500
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
VI-27
Schedule 24
South Florida Water Management District
Erotic Plant Control
Last Ten Fiscal Years
Fiscal Year
2005 2008 2007 2008 2009 2010 2011 2012 2013 2014
Acres treated 39,077 37,350 68,053 61,070 50,538 38,015 28,284 63.111 61.489 46.580
Source: Land Stewardship Section of South Flonda Water Management District.
Acres Treated For Exotic Plant Control
80,000
70,000
60,000
50,000
40,000 y,,,
i 30.000
20,000
10,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
VI-28
Schedule 25
South Florida Water Management District
Prescribed Bums
Last Ten Fiscal Years
Fiscal Year
2005 2006 2007 2008 2009 2010_ 2011 2012 2013 2014
Acres burned 18,704 16,211 66,825` 15,283 15,609 9,523 27,479 12,010 13,794 23,262
•During fiscal year 2007,over 55,000 acres were burned in Lake Okeechobee as a suppression tool to combat wildfires.
Source:Land Stewardship Section of South Florida Water Management District.
Acres Burned Through Prescribed Fire
80,000
70,000
60,000
50000 *;,. `.. ``-rz „s. n*s
I
40,000-
30,000-
i 20,000 •
10,000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Fiscal Year
VI-29
Schedule 26
South Florida Water Management District
Stormwater Treatment
Last Ten Water Years
Water Year
2005 2008 2007 2008 2009 2010 2011 2012 2013 2014
Metric tons of phosphorus removed 500 300 200 100 400 300 300 260 210 312
Notes: The District is directed by the Everglades Forever Act to reduce phosphorus levels from storm runoff and other sources
before it enters the Everglades Protection Area.These reductions,which began in 1994,are achieved through
Stormwater Treatment Areas(STA)and Best Management Practices.
A water year is the period from May 1 through April 30.
Source: South Florida Water Management District Environment Report.
VI-30
Schedule 27
South Florida Water Management District
Capital Assets by Major Program
Current Fiscal Year
Water
Intangibles- Construction Canals& Intangibles- Control
Major Program Land Not Depreciated In Process Levees Buildings Depreciated Equipment Improvements Structures Total
Land Stewardship $ 942,098,084 $ 25,724,972 $ 2134,250 $ 28,837,293 $ 1,047,279 $ - $ 918,997 $ 3,741,250 $ 821,354 $1,005,323,479
Mission Support 1,523 - 1,126,039 - 25,521,369 7,302,407 8,074,061 1,116 - 42,026,515
Modeing&Scientific Support - - - - 11,679,888 155,205 825,423 - - 12,660,516
Operations&Maintenance 15,418,175 1,014,803 48,068,610 373,925,178 37,782,606 212,789 17,147,442 3,583,312 323,563,674 820,716,589
Regulation - - 630,769 - - 129,068 382,635 - - 1,142,472
Restoration 1,607,442,148 43,650,774 392,845,086 299,347,637 8,471,902 817,027 13,107,369 7,665,010 489,081,150 2,862,428,103
Water Supply - - 2,614,795 - - 844 180,141 - - 2,795,780
District Total $2,564,959,930 $ 70,390,549 $ 447,419,549 $ 702,110,108 5 84,503,044 $ 8,617,340 $ 40,636,088 $ 14,990,688 $ 813,468,178 $4,747,093,454
Note: At the beginning of fiscal year 2012 the Dishicrs programs were restructured.All restructuring has been adjusted for in the schedule.
Source: Capital asset records of South Florida Water Management District.
VI-31
•
DISCLOSURE SECTION
S.E.C. RULE 15c2-12 DISCLOSURES
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
CONTINUING ANNUAL AND EVENT DISCLOSURES
The following disclosures comply with amendments of the Securities and Exchange Commission
(SEC) Rule 15c2-12 (b)(5)(i)(A) to (D). Effective in 1995, the amendments required municipal
bond underwriters to gain reasonable assurance from bond issuers that they will provide annual
information and notices of material events for disclosure to the secondary bond market. To enter
the bond market, the District and other issuers of state and local government securities are
indirectly affected by these amendments. We are using this section of the District's
Comprehensive Annual Financial Report to comply with our continuing disclosure agreement.
DISTRICT AGREEMENT AND EFFECTIVE DATES
In respective Bond Resolutions, the District agreed to provide continuing disclosure of annual
information and notices of material events upon issuing its
• Special Obligation Land Acquisition Refunding Bonds, Series 2002,
• Special Obligation Land Acquisition Refunding Bonds, Series 2003, and
• Certificates of Participation, Series 2006.
SUMMARY OF CONTINUING BOND DISCLOSURE REQUIREMENTS
Notice of
Annual Financial Audited Annual Notice of Failure to Provide
Recipient Information Financial Statements Material Events Annual Financial
Information
SEC Rule 15c2-12 SEC Rule 15c2-12 SEC Rule 15c2-12 SEC Rulel5c2-12
(b)(5)(i)(A) (b)(5)(i)(B) (b)(5)(i)(C) (b)(5)(i)(D)
Effective FYE (1) Effective FYE(1) Effective Effective April 1
After Jan. 1, 1996 After Jan. 1, 1996 July 3, 1995 After FYE(1)
Each NRMSIR (2)
or the MSRB (3) X X
Each NRMSIR(2) X X
Paying Agent(4) X X X X
Underwriters (4) X X X X
(1) For the District, the date first effective was for Fiscal Year Ended (FYE) September 30, 1996.
(2) Nationally Recognized Municipal Securities Information Repository.
(3) Municipal Securities Rulemaking Board.
(4) Required under Governing Board Resolution 95-28, Section 24, in connection with the issuance of the
Special Obligation Land Acquisition Refunding Bonds, Series 1995.
VII-1
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
ANNUAL FINANCIAL INFORMATION
SEC Rule 15c2-12(b)(5)(i)(A) requires annual financial information and operating data that are
generally consistent with the presentation included in the Official Statements for each bond issue.
The following paragraphs summarize the "Security for the Bonds" and the "Security for the
Certificates" appearing in the Official Statements. Subsequent paragraphs, tables, and exhibits
contain the required financial information and operating data to include:
• pledged revenues,
• funding and allocation of monies and deposits of the Trust Fund, and
• lease payments.
SECURITY FOR THE BONDS
The Bonds are secured by a first lien on and payable solely from the "Pledged Revenues" as
provided in the Bond Resolution.
The Bonds are limited obligations of the District. As such, the District, the State of Florida, or any
public body in the State shall not:
• pledge its full faith and credit to the payment of bond principal, interest or premium; or
• directly or indirectly be contingently obligated to levy any taxes or to make any appropriation for
payment except from the pledged revenues for debt service on the Bonds.
Pledged Revenues consist of all monies collected, allocated to the District, and deposited in the
Water Management Lands Trust Fund (the"Trust Fund")which consist of:
• a share of the Documentary Stamp Tax,
• investment earnings and civil penalties.
The pledged revenues equally and ratably secure the Series 2002 and 2003 Bonds. The Florida
Department of Environmental Protection maintains the Trust Fund.
DOCUMENTARY STAMP TAX
The State of Florida imposes an excise tax on documents (the "Documentary Stamp Tax"). Under
current law, the Documentary Stamp Tax is levied upon certain instruments whereby interests in
real property are conveyed, original issues of stock, bonds and debentures issued in the State of
Florida, promissory notes or other written obligations to pay money, and mortgages recorded in the
State of Florida. In general, the amount of the Documentary Stamp Tax due with respect to an
instrument is based upon the amount of indebtedness evidenced or secured thereby, or in the
case of documents transferring interests in property, upon the consideration for the transfer, or, in
the case of stocks and bonds, upon the face value or actual value thereof.
The Documentary Stamp Tax is collected by the Florida Department of Revenue (DOR) and by the
Clerks of the Circuit Courts of the counties in Florida on behalf of the DOR. The Documentary
Stamp Tax is distributed, for various purposes, pursuant to a statutorily-prescribed formula.
VII-2
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
Under current law, the DOR distributes the Documentary Stamp Tax collections and investment
earnings, thereon, as follows:
• The first 8% to the State of Florida General Revenue Fund to pay a portion of the costs of
general government.
• The costs of collection and enforcement of the Documentary Stamp Tax are deducted by and
for the use of the Department of Revenue.
• A portion of the then remaining Documentary Stamp Tax collections (including investment
earnings) are required to be deposited in the Trust Fund.
There is no assurance that the Florida Legislature will not change the percentage allocations to the
General Fund, the Documentary Stamp Tax collections to the Trust Fund, or the percentage of the
Trust Fund allocable to the District. Likewise, the Legislature could implement an appropriations
bill affecting the distributions to the Trust Fund. Such changes, if made, could affect distributions
to the Trust Fund. However, there exists an implied contract with the State to allocate sufficient
documentary stamp revenues to cover debt service.
The following table illustrates the current and historical taxation rates and percentage distribution
to the Trust Fund.
DOCUMENTARY STAMP TAX RATES AND TRUST FUND DISTRIBUTION
Tax(Per$100) Tax(Per$100) Percent to
Year Effective Stocks/Bonds/Mortgages Deeds Trust Fund
1963 $0.15 - -
1981 $0.15 $0.45 7.20%
1985 $0.15 $0.50 9.80%
1987 $0.15 $0.55 9.20%
1990 $0.32 $0.55 6.90%
1991 $0.32 $0.60 6.56%
1992 $0.35 $0.70 5.84%
2001 $0.35 $0.70 4.20%
FUNDING AND ALLOCATION OF THE TRUST FUND
Deposits distributed to the Trust Fund began accruing to the District and the State's other four
water management districts in August 1981. Under present law, moneys from the Trust Fund (net
of DEP's administrative expenses) are allocated monthly among the State's five water
management districts in the following percentages:
30%- South Florida
25%- St. Johns River
25%- Southwest Florida
10%- Suwannee River
10%- Northwest Florida
VII-3
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
USE OF THE TRUST FUND
Expenditure of moneys from the Trust Fund is limited to payment of debt service and the
acquisition, management, maintenance and capital improvement costs of certain lands included
within the District's Five-Year Plan and to DEP's cost to administer the Trust Fund.
Moneys in the Trust Fund not needed to meet land acquisition and management costs, or current
debt service, are invested by the State Treasurer to the credit of the Trust Fund, in the manner
provided by Florida law. Interest received on such investments is credited to the Trust Fund and
proportionally allocated to the District.
ESCROW AND RESERVE FUNDS
Security for payment of debt service on outstanding bonds is provided from two sources:
• an Escrow Fund within the Trust Fund and
• a Surety Bond issued by AMBAC and held by the Trustee.
Trust Fund Escrow
An agreement between the District and the Florida Department of Environmental Protection (DEP)
requires DEP to set aside and escrow from the first moneys allocable to the District in the Trust
Fund, sufficient moneys for the payment of principal and interest on the Bonds becoming due in
such Bond Year. DEP is obligated to pay Trust Fund moneys sufficient to pay debt service as it
becomes due on the Bonds to the District's Paying Agent. However, such payment shall not
exceed the District's cumulative portion of funds in the Trust Fund.
Debt Service Reserve Fund/Surety Bond
The Bond Resolution provides for establishment and maintenance of the Reserve Fund for the
purpose of making deposits in the Debt Service Fund in the event the moneys therein are
insufficient for the payment of sums due on the Bonds, and for no other purpose. Moneys on
deposit in the Reserve Fund shall be maintained for the benefit of the holders of the Series 2002
and 2003 Bonds, and any parity obligations of the District issued pursuant to the Resolution.
The District is required to have on deposit in the Reserve Fund an amount of money and/or Debt
Service Reserve Fund Surety Bonds equal to the Reserve Fund Requirement. Beginning in 1995,
the District obtained a Debt Service Reserve Fund Surety Bond to meet this requirement. The
Reserve Fund Requirement is defined in the Resolution to mean, at any time, an amount equal to
the lesser of:
• the maximum amount of principal and interest on all outstanding bonds due in any succeeding
fiscal year, or
• the aggregate of ten (10%) of the original proceeds of each series of bonds.
vn-4
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
SECURITY FOR THE CERTIFICATES OF PARTICIPATION
The Series 2006 Certificates evidence undivided proportionate interests in the principal portion and
interest portion of Basic Lease Payments made by the Governing Board to the Corporation under
the Series 2006 Lease. The Series 2006 Certificates are secured by and payable from the Trust
Estate established for the Series 2006 Certificates (the "Trust Estate") pursuant to the Trust
Agreement and any amounts payable under the Financial Guaranty Insurance Policy. The Trust
Estate consists of all estate, right, title and interest of the Trustee in and to the Basic Lease
Payments under the Series 2006 Lease, and all amounts held in the funds and accounts under the
Trust Agreement in accordance with the provisions of the Master Lease and the Trust Agreement,
including investment earnings thereon, and any and all monies received by the Trustee pursuant to
the Series 2006 Lease and the Trust Agreement which are not required to be remitted to the
Governing Board or the Corporation pursuant to the Master Lease or the Trust Agreement.
Purpose of the Series 2006 Certificates
The Series 2006 Lease is entered into, and the Series 2006 Certificates issued to provide for the
lease-purchase financing of the acquisition, construction, installation and equipping of certain
facilities and improvements to land for the restoration, protection and preservation of the
Everglades ecosystem pursuant to the Acceler8 Project; refinance certain interim financings of the
District, a portion of which was used to commence construction of certain of the 2006 Facilities;
and pay certain costs of issuance of the Series 2006 Certificates, including the premium on a
financial guaranty insurance policy for the Series 2006 Certificates. The Series 2006 Certificates
are executed and delivered pursuant to a Master Trust Agreement dated November 1, 2006, and
as amended and supplemented by the Series 2006 Supplemental Trust Agreement, dated
November 1, 2006.
Lease Payments
All Basic and Additional Lease Payments and all other amounts required to be paid by the
Governing Board under the Series 2006 Lease and all other Leases are payable solely from legally
available funds budgeted and appropriated by the Governing Board for such purpose. Revenues
available to the Governing Board for operational purposes and capital projects such as the Series
2006 Facilities include, but are not necessarily limited to, ad valorem taxes, operating grants and
contributions from various sources, including the State of Florida, and capital grants and
contributions from various sources, including the State and Federal Government.
VII-5
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
ANNUAL DEBT SERVICE REQUIREMENTS
Debt service requirements on the Series 2002 and 2003 Bonds, and Series 2006 Certificates are
as follows:
ANNUAL DEBT SERVICE (Principal and Interest) REQUIREMENTS(in Millions)
Fiscal Years I Total I Series 2002 I Series 2003 I Series 2006
2015 $ 42.06 $ 2.53 $ 4.35 $ 35.18
2016 42.02 2.52 1 4.34 1 35.16
2017 35.14 35.14
2018 35.13 35.13
2019 -2023 175.38 175.38
2024 -2028 174.83 174.83
2029-2033 174.14 174.14
2034-2037 138.70 138.70
Totals $ 817.40 $ 5.05 $ 8.69 $ 803.66
AUDITED ANNUAL FINANCIAL STATEMENTS
Section II of this Comprehensive Annual Financial Report contains the District's Basic Financial
Statements and related Report of Independent Certified Public Accountants. These statements
are consistent with the Basic Financial Statements contained in the Official Statements in
compliance with SEC Rule 15c2-12(b)(5)(i)(A) and (B).
1 Scheduled payoff—October 1, 2015.
2 Scheduled payoff—October 1, 2036.
VII-6
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
REQUIRED NOTICES
The following table lists each material event and required notice defined in SEC Rule 15c2-
12(b)(5)(i)(C) and (D). The table confirms that no notice to the NRMSIR or the MSRB and the SID
was required for any of the material events related to each of the indicated Land Acquisition Bond
Series currently outstanding. This confirms compliance with SEC Rule 15c2-12(b)(5)(i)(C) and (D)
from July 3, 1995 to the date of this report.
NOTICE OF MATERIAL EVENTS LAND ACQUISITION CERTIFICATES
OR FAILURE TO PROVIDE REQUIRED BONDS
ANNUAL FINANCIAL INFORMATION
RULE SERIES SERIES SERIES
SEC. DESCRIPTION 2002 2003 2006
(C)(1) Principal and interest payment delinquencies. None None None
(C)(2) Non-payment related defaults. None None None
Unscheduled draws on debt service reserves reflecting
(C)(3) financial difficulties. None None None
Unscheduled draws on credit enhancements reflecting
(C)( 4) financial difficulties. None None None
Substitution of credit or liquidity providers, or their failure to
(C)(5) perform. None None None
Adverse tax opinions or events affecting the tax-exempt
(C)(6) status of the security. None None None
(C)(7) Modifications to rights of security holders. None None None
(C)(8) Bond calls. None None None
(C)(9) Defeasances. None None None
(C)(10) Release, substitution, or sale of property securing None None None
repayment of the securities.
(C)(11) Ratings changes. (a) (a) (a)
(C)(12) Bankruptcy, insolvency, receivership, or similar events. None None None
Merger, consolidation, or acquisition involving the sale of all
(C)(13) or substantially all assets, other than in the ordinary course None None None
of business.
(C)(14)Appointment of a successor or additional trustee, or the None None (b)
change of name of a trustee.
(D) Failure to provide annual financial information or None None None
operating data in a timely manner.
(1 Protection of the Florida Department of Environmental None None None
Protection on its obligations under the Agreement.
VII-7
SOUTH FLORIDA WATER MANAGEMENT DISTRICT
(a) During fiscal year 2011, Moody's Investor Services (Moody's) and Standard and Poor's (S&P)
withdrew their ratings of the District's bond insurer, AMBAC Assurance Corporation. This rating was
previously withdrawn by Fitch Ratings. During fiscal year 2012, Moody's lowered its credit rating on
the District's Certificates and Land Acquisition Bonds to Aa3 from Aa2 and to A3 from Al and Fitch
Ratings downgraded the rating on the District's COPS to AA- from AA. On January 14, 2014, Fitch
Ratings affirmed both the AA- rating on the District's COPS and the A rating on the Land Acquisition
Bonds. The rating on all District debt is based on the District's underlying"non-insured" rating for the
current fiscal year as follows:
• Certificates of Participation, Series 2006, rated Aa3, AA and AA- by Moody's, Standard & Poor's
and Fitch, respectively.
• Land Acquisition Bonds, Series 2002 and 2003, rated A3, A+ and A by Moody's, Standard &
Poor's and Fitch, respectively.
(b) During fiscal year 2013, U.S. Bank National Association, the lead bank of U.S. Bancorp, became the
District's Trustee for the Certificates of Participation, Series 2006 when it acquired the municipal bond
trustee business of Deutsche Bank,who formerly served as the District's Trustee.
VII-8
South Florida Water Management District
3301 Gun Club Road•West Palm Beach,Florida 33406
411 :41p 561-686-8800•1-800-432-2045•www.sfwmd.gov
tiers„,
MAILING ADDRESS.P.O.Box 24680•West Palm Beach,FL 33416-4680