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Agenda 05/11/2021 Item #13A1 (CAFR FY Ended September 30, 2020)05/11/2021 13.A EXECUTIVE SUMMARY Presentation of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020 and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. OBJECTIVE: Presentation of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020 and authorization to file the related State of Florida Annual Local Government Financial Report (AFR) with the Department of Financial Services. CONSIDERATIONS: The Clerk of the Circuit Court serving as Ex-Officio Clerk to the Board of County Commissioners is responsible for coordination of the annual independent audit along with the production of the Comprehensive Annual Financial Report and the filing of certain statutorily mandated reports. In this role, the Clerk is pleased to present to the Board the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020, which includes the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended September 30, 2019. The Comprehensive Annual Financial Report represents a significant effort by both the Finance and Accounting Department and County staff. We would like to express our sincere appreciation to the Board, the Constitutional Officers and their staff, the County Manager, the County Attorney, the Department Heads, Division Directors and County staff for their assistance. We would like to also thank the County's external auditors, CliftonLarsonAllen LLP and their staff for a successful year-end audit. The Comprehensive Annal Financial Report package delivered to the Board includes an unmodified annual audit opinion for fiscal year 2020, grant related Single Audit Reports and an unaudited report on debt for fiscal year 2020. The unaudited report on debt is required by the County's Debt Management Policy. A brief presentation on the overall audit will be given by CliftonLarsonAllen staff. Also included as an exhibit, the AFR is due within 45 days of completion of the audit report but no later than 9 months after the end of the fiscal year. This report documents the revenues and expenditures for a given fiscal cycle in accordance with the State of Florida Uniform Accounting System. GROWTH MANAGEMENT IMPACT: There is no growth management impact. FISCAL IMPACT: There is no fiscal impact to this executive summary. LEGAL CONSIDERATIONS: This item has been reviewed by the Count Attorney, raises no legal issues, and requires majority vote for acceptance of the report. -JAK RECOMMENDATION: That the Collier County Board of County Commissioners accepts the Comprehensive Annual Financial Report and authorizes the filing of the State of Florida Annual Local Government Financial Report with the Department of Financial Services. Prepared By: Derek M. Johnssen, Director of Finance and Accounting Clerk of the Circuit Court, Finance and Accounting Department Packet Pg. 210 13.A 05/11/2021 ATTACHMENT(S) 1. Collier County BOCC Presentation 2021.05.11 (PDF) 2. [LINKED]2020 Comprehensive Annual Financial Report (PDF) 3.2020 Annual Financial Report (PDF) Packet Pg. 211 13.A 05/11/2021 COLLIER COUNTY Board of County Commissioners Item Number: 13.A Doe ID: 15780 Item Summary: *** This Item to be heard at 10:00 a.m. *** Presentation of the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020 and authorization to file the related State of Florida Annual Local Government Financial Report with the Department of Financial Services. Meeting Date: 05/11/2021 Prepared by: Title: Finance Manager — Clerk of the Circuit Court Name: Kelly Jones 05/04/2021 1:54 PM Submitted by: Title: Senior Staff Assistant — Clerk of the Circuit Court Name: Jennifer Milum 05/04/2021 1:54 PM Approved By: Review: Clerk of the Circuit Court Office of Management and Budget County Attorney's Office Budget and Management Office County Manager's Office Board of County Commissioners Derek Johnssen Additional Reviewer Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Ed Finn Additional Reviewer Mark Isackson Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 05/04/2021 2:23 PM Completed 05/04/2021 2:30 PM Completed 05/04/2021 3:51 PM Completed 05/05/2021 11:12 AM Completed 05/05/2021 2:04 PM 05/11/2021 9:00 AM Packet Pg. 212 ('nlliPr ('niin �i+5�[s�/►.' •��I�a►Grp In r i ri;; '� %W 7 1 Presentation of 2020 Audit Results to the Board of County Commissioners May 11, 2021 Audit and Attestation Services Performed • Audit of the County's Comprehensive Annual Financial Report for the year ended c September 30, 2020, in accordance with Government Auditing Standards 0 0 as as L a t� U • Single Audit in accordance with Uniform Guidance m • Includes audit of the Schedule of Expenditures of Federal Awards and certification of the Data Collection Form 0 c.� L d • State Single Audit in accordance with Section 215.97, Florida Statutes and Chapter 10.550, Rules of the Auditor General E • Examination of compliance with applicable Florida Statutes for investments and E911 Q Packet Pg. 214 13.A.1 Independent Auditors' Report Report on Internal Control Over Financial Reporting and On Compliance And Other Matters Based on an Audit of Financial Statements Performed in Accordance with GovernmentAuditing Standards (Yellow Book Report) Independent Auditors' Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the State of Florida (Single Audit Report) Management Letter as required by Chapter 10.550 Rules of the Auditor General Z111:16 Independent Accountants' Report on Compliance with specific Florida Statutes as required by Chapter 10.550 Rules of the Auditor General Governance Communication J T p T � =� U O o ' N T p N N O D N C 0 r c m a U U O m r c 0 U `m 0 U r c m E t U 2 r a Packet Pg. 215 2020 — What Happened • The Federal Office of Management and Budget (OMB) extended single audit deadlines • GASB delayed all upcoming accounting standards by 1 year • OMB did not issue single audit guidance (Compliance Supplement) for the Coronavirus Relief Fund and other COVID-19 programs, until late December • Significant funding from the Federal government and State to respond to the pandemic had to be administered and managed by management and staff • The County's processes and procedures for year-end close were impacted • Audit risk was increased as a result of all these factors Packet Pg. 216 1 13.A.1 2020 — Reaction and Response T p T tf LO U O o • Our audit procedures looked different this year o — Our understanding of internal controls had to go deeper this year to address the possibility of 0 multiple internal control structures that may have been in place during the year r — CLA and the County staff leveraged technology in an effective manner to complete the audit N L • The Clerk moved forward with implementation of GASB 87 Leases as planned, and in advance of required implementation 0 • The Coronavirus Relief Fund (CFDA 21.019) was a major single audit program o audited in 2020 • County and Clerk management and staff worked through a difficult year to produce a quality financial report and to ensure compliance with Federal and State regulations a Packet Pg. 217 1 13.A.1 Results of Procedures T 00 T tf LO U • Independent Auditors' Report O o c cm N — Unmodified Opinion O c — Emphasis of Matter paragraph related to the implementation of GASB 87 — Leases • Independent Auditors' Report on Internal Control L — Material Weaknesses reported for an audit adjustment related to an incorrect accrual of a FY21 a invoice ° m • Single Audit Report - Federal Programs and State Projects 3 — Unmodified Opinion on Compliance with no reported findings 0 2 • Management Letter — No suggestions for improvement • Independent Accountants' Report E — Unmodified attestation opinion on compliance a Packet Pg. 218 1 13.A.1 v Required Communications to Governance J r 0 LO U 00 • Significant estimates within the financial statements o — Self-insurance claims liability cm — Pension liability r_ CD — Postemployment benefits other than pension liability L — Allowance for doubtful accounts — EMS — Landfill post -closure liability m • No difficulties encountered in performing the audit O • No disagreements with management 6 a Packet Pg. 219 I I A w ' f ' J ■ � J C - r a LO o N O N u t/ - o l� N '+.+ 0 O C m U r c m • •-•• - E t u r a Packet Pg. 220 2021 and Beyond • CARES Act and American Rescue Plan Act Funding — Compliance and documentation — Additional and significant single audit testing in 2021 • Continued pandemic impact — Administration of new funds and community impact — Additional grants coming from both Federal and State government — Overall economic impact on future financial statements - still uncertain Packet Pg. 221 1 Thank you to everyone involved in the audit! Christopher Kessler, CPA Principal Chris.Kessler@CLAconnect.com CLAconnect.com WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX, AND CONSULTING ©2020 CliftonLarsonAllen LLP Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC -registered investment advisor FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2020FP IL rl 0 -AN*d. ov T � k �1171 IR COMPREHENSIVE Cyr S a ti T `. AN N UAL FINANCIA L t. r 4., 1 - , y �+ y.. i P. �iYL� IM L �+�, � •t � �;� , �'y} , � III ho Pt y'F • T' � T'' S f i r Y# 1 ' � •�� I 1 � NF � � I 1 4�5 i � � � 5 ��{ L y - 3• '•�r � - �h, k � � � �� '+F r� #f Y t ' S I �. � � � I • � �. ' + S• fit'+ '�~ - Photos courtesy of the Naples Botanical Garden Naples Botanical Garden is a 170 acre, world -class garden paradise that features plants from around the world. The Garden provides arts, culture, youth and adult education, conservation, wellness, and volunteer programs that contribute to the quality of life in Collier County. Nap] cs Botanical GARDEN COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2020 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS BURT SAUNDERS, ESQ. CHAIRMAN - DISTRICT 3 ANDY SOLIS, ESQ. VICE-CHAIRMAN - DISTRICT 2 DONNA FIALA - DISTRICT 1 PENNY TAYLOR - DISTRICT 4 WILLIAM L. MCDANIEL, JR. - DISTRICT 5 COUNTY MANAGER LEO E. OCHS, Jr. COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER CHIEF FINANCIAL OFFICER CRYSTAL K. KINZEL DIRECTOR OF FINANCE AND ACCOUNTING DEREK M. JOHNSSEN, CPA Prepared by the Office of the Clerk of the Circuit Court and Comptroller, Finance and Accounting Department COLLIER COUTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2020 INTRODUCTORY SECTION TransmittalLetter......................................................................................................................................................................... i Certificateof Achievement......................................................................................................................................................... vi OrganizationalChart.................................................................................................................................................................viii FINANCIAL SECTION IndependentAuditors' Report..................................................................................................................................................... 1 Management's Discussion and Analysis (Unaudited).................................................................................................................. 4 Basic Financial Statements Statementof Net Position..................................................................................................................................................... 16 Statementof Activities.......................................................................................................................................................... 18 Balance Sheet — Governmental Funds.................................................................................................................................. 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ............................................ 21 Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............................................. 22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities............................................................................................................................... 23 General Fund - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis).................................................................................................................................................................. 24 Bayshore Gateway Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis).......................................................................................................... 27 Immokalee Community Redevelopment Agency - Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual (Budgetary Basis)................................................................................................................. 28 Statement of Net Position — Proprietary Funds..................................................................................................................... 29 Statement of Revenues, Expenses and Changes in Fund Net Position — Proprietary Funds .................................................. 31 Statement of Cash Flows — Proprietary Funds...................................................................................................................... 32 Statement of Fiduciary Net Position — Agency Funds........................................................................................................... 34 Notesto the Financial Statements........................................................................................................................................ 35 Required Supplementary Information....................................................................................................................................... 81 Combining and Individual Fund Financial Statements and Other Supplemental Information................................................... 83 Nonmajor Governmental Funds CombiningBalance Sheet..................................................................................................................................................... 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................................................... 96 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ........... 105 Nonmajor Enterprise Funds Combining Statement of Net Position................................................................................................................................. 132 Combining Statement of Revenues, Expenses and Changes in Fund Net Position.............................................................. 133 Combining Statement of Cash Flows.................................................................................................................................. 134 COLLIER COUTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2020 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Internal Service Funds Combining Statement of Net Position................................................................................................................................. 136 Combining Statement of Revenues, Expenses and Changes in Net Position....................................................................... 137 Combining Statement of Cash Flows.................................................................................................................................. 138 Fiduciary Funds Combining Statement of Fiduciary Net Position.................................................................................................................. 140 Combining Statement of Changes in Fiduciary Net Position............................................................................................... 141 Component Units Combining Statement of Net Position................................................................................................................................. 144 Combining Statement of Activities...................................................................................................................................... 145 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill.............................................148 STATISTICAL SECTION NetPosition by Component..................................................................................................................................................... 152 Changein Net Position............................................................................................................................................................ 154 Governmental Activities Tax Revenues by Source.................................................................................................................... 156 Fund Balances of Governmental Funds................................................................................................................................... 157 Changes in Fund Balances of Governmental Funds................................................................................................................. 158 Assessed Value and Estimated Actual Value of Taxable Property........................................................................................... 160 Property Tax Rates — All Direct and Overlapping Governments................................................................................................ 162 PrincipalTaxpayers County-Wide............................................................................................................................................. 163 Property Tax Levies and Collections........................................................................................................................................ 164 Ratiosof Outstanding Debt by Type......................................................................................................................................... 165 Direct, Overlapping and Underlapping Governmental Activities Debt....................................................................................... 166 Pledged -Revenue Coverage..................................................................................................................................................... 167 Demographic and Economic Statistics.................................................................................................................................... 168 PrincipalEmployers................................................................................................................................................................. 169 Budgeted Full -Time Equivalent County Employees by Function............................................................................................... 170 OperatingIndicators by Function............................................................................................................................................. 171 Capital Asset Statistics by Function......................................................................................................................................... 172 TABLE OF CONTENTS COLLIER COUTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2020 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS STATE AND PROJECTS Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ............................... 175 Independent Auditors' Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General of the Stateof Florida......................................................................................................................................................................... 177 Schedule of Expenditures of Federal Awards and State Financial Assistance......................................................................... 179 Notes to the Schedule of Expenditures of Federal Awards....................................................................................................... 186 Schedule of Findings and Questioned Costs............................................................................................................................ 187 fir•.. . ,r "'�1i .,/� �� 7 �' .f \ .' "� �" % � � ° �r��YJ�s ,k.� '�-i':i., is � 4: t,�� b�� f�" �.✓ ,. \�L �\� \ ir... y ' 'R`,�.�� ~ n, � ` ;1 �'1 C 1,..,2��. +, ..e. � fi..`4 r. _ .�., `=0 �i .tt.�,> R ��.•:, 4 1� .i -. ,1.�.7.^ - ' �` . `�,ifC!' �� '� � � � ^� . i �,y„ ✓•'rs� F � cy�� i�t� Y.j� I b' � �1� �i ,,� i � �r" rr:—,!`�.: t .._. �' � �ti i"t> ��• lr � ��, \�y �, � _`sue �" �_ z.. � ;j(, JuUtAul sp,r.t*ic 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Crystal K. Kinzel Collier County Clerk of the Circuit Court and Comptroller 3315 Tamiami Trail East, Suite 102 Naples, Florida 34112-5324 May 11, 2021 To the Citizens and Members of the Board of County Commissioners, Collier County, Florida: It is with pleasure that we present to you, the citizens of Collier County and members of the Board of County Commissioners, the Comprehensive Annual Financial Report for the fiscal year ended September 30, 2020. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with management. To the best of our knowledge and belief, the information presented herein is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of County operations. The Clerk of the Circuit Court and Comptroller's Finance and Accounting Department, as well as County management, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements and maintaining accountability of assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Chapter 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. State law requires the County to submit a complete set of financial statements within forty-five days after the issuance of the audit report (but no later than nine months after the fiscal year end) presented in accordance with accounting principles generally accepted in the United States. For the fiscal year ended September 30, 2020, the independent auditor, Clifton LarsonAllen LLP, issued an unmodified ("clean") opinion on the financial statements. Their report is included in the Financial Section of this report. In addition to meeting the requirements set forth in State statutes, the audit was also designed to meet the requirements of the Government Auditing Standards, the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the Rules of the Auditor General, Chapter 10.550 Local Governmental Entity Audits. Information relating to the Single Audits, including the schedule of expenditures of federal awards and state financial assistance and the independent auditors' report on compliance and internal control over compliance with requirements applicable to each major federal program and state project, are included in the Federal and State Single Audit Section of this report. Governmental accounting and auditing 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 the two should be read in concert. Collier County's MD&A can be found in the Financial Section immediately following the independent auditors' report. Phone- (239) 252-2646 Fax- (239) 252-2755 Website- www.CollierClerk.com Email- CollierClerk@collierclerk.com PROFILE OF THE GOVERNMENT Collier County is a Constitutional form of government and was established in 1923 under the Constitution and the laws of the State of Florida. The Board of County Commissioners is the legislative body for Collier County and comprises five members elected in the five different Commission districts of the County. The Board of County Commissioners appoints a county manager to carry out policies and oversee the county's day to day operations. In addition to the County Commissioners, voters elect the following five constitutional officers on a Countywide basis: the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The County provides its citizens with a wide range of services that include tax assessment and collections, law enforcement, emergency management, fire and emergency medical services, animal services, library, museum and cultural services, parks and recreation operations, road maintenance and construction, economic development and social and human services. Additionally, the County owns and operates a water and wastewater utility, a solid waste landfill and recycling program, a landfill gas to energy facility, three airports, a transit system and an amateur sports complex. Budgets are prepared annually. Formal budgetary integration is employed as a management control throughout the year. The Board of County Commissioners conducts budget workshops during June of each year and a proposed budget is released in July. The budgets of Constitutional Officers are presented to the appropriate authorizing bodies according to State statute. Two public hearings are held in September to allow taxpayer input and to adopt the final budget. ECONOMIC CONDITION AND OUTLOOK Collier County, the state's second largest county, is on the southwest coast of Florida, directly west of Miami. With a 2020 population of 383,166 (a 19.2 percent increase over the last ten years), Collier County is one of the fastest growing counties in the state over the last ten years. The resident population includes Unincorporated County (pop. 342,625) and three municipalities: the Cities of Naples (pop. 22,147), Marco Island (pop. 17,971) and Everglades (pop. 423). The County's economic base is concentrated in tourism, agriculture, fishing, construction, ranching and forestry with a growing services economy and an active technology sector. Gulf of Mexico beaches and the Everglades National Park are important attractions to this area. The County's manufacturing base grew from 289 establishments in 2008 to 325 in 2020, led by companies providing products varying from surgical and medical instruments, kitchen cabinets and countertops to aircraft engines and parts. Recently, the area has become particularly attractive to logistical and warehousing service providers, with an expected 1 million square foot distribution center scheduled to break ground. Sports tourism is a growing segment of Collier's economy. The Minto United States Open Pickleball Championship continues to expand and generally attracts national and international participation. The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near 1-75 and Collier Boulevard. At completion, the Complex will contain twenty-one multipurpose fields, an outdoor fitness center, a food truck pavilion and a championship stadium. The first phase of the facility opened in October of 2020 and final completion is expected in 2022. The Complex is designed to attract national tournaments, while at the same time providing additional fields needed for local field play for sports such as soccer and baseball. To further promote economic growth, diversify the economy and encourage high -wage job creation, the Board of County Commissioners has created Economic Innovation Zones. The Ave Maria Innovation Zone, the Interchange Activity Center No. 9 Innovation Zone and the Golden Gate City Economic Development Zones were created to provide specific geographic areas a dedicated source of economic development funding through tax increment revenues. Flexible zoning overlays that will allow for reduced developmental timeframes for qualified target industry uses within the Zones are in process. Taxable property market valuation for fiscal year 2020 totaled $103.9 billion, a very high $271,069 per capita. The County's millage for General Fund operations in fiscal year 2020 remained at only 36% of the statutory 10 mill limit, or $3.56 per thousand dollars of taxable value. Unemployment levels in recent years approximate, or are slightly below, the statewide average. The 2020 annual County unemployment rate stood at 5.7%, while the statewide average is 7.2%. Income levels are high, with a per capita personal income of $99,382. LONG TERM FINANCIAL PLANNING Each Florida local government must prepare a comprehensive plan for managing growth, providing vital services and protecting the environment. In Collier, several annual processes take place which influence long range planning and the development of the budget. Each year the County performs a three-year budget projection of primary ad valorem supported funds (General Fund and the Unincorporated Area Municipal Services Taxing District Fund) prior to developing budget policy. In addition, there are several annual long range planning processes such as the Capital Improvement Element (CIE), the Annual Update and Inventory Report (AUIR), the Long Range Transportation Plan, the Water and Wastewater Master Plans, the Master Mobility Plan and concurrency planning. The County is required to prepare and present to the Board of County Commissioners an Annual Update and Inventory Report (AUIR) and adopt a five-year Capital Improvement Element (CIE). Both of these processes focus on the schedule of capital improvements for the County. The AUIR is an annual status report on public facilities and the CIE is a planning document that identifies public facilities that will be required during the next five or more years. The Capital Improvement Element is the foundation of Collier County's annual Capital Improvement Program (CIP). The amount planned for CIP projects in fiscal years 2021-2025 is $1.6 billion. Included in the County's current CIP for fiscal years 2021-2025 are approximately $489.0 million in water and wastewater projects, $640.7 million in transportation projects, $157.5 million in stormwater projects and $67.7 million in government facilities projects. In addition, parks and recreation projects of approximately $72.4 million are planned, as well as $48.8 million for tourist development funded projects, $24.1 million in solid waste projects, $60.4 million in public safety projects and miscellaneous projects totaling $17.6 million. Approximately $405.1 million of the fiscal year 2021— 2025 Capital Improvement Program is currently planned to be funded by bond or loan proceeds and $256.4 million is planned to be funded by the infrastructure sales tax. The Master Mobility Plan (MMP) was developed to address the transportation mobility needs of Collier County. The MMP is focused on demand management and coordination to reduce the need for transportation infrastructure. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as a funding source in the following year, maintaining General Fund budgeted reserves between 8% and 16% of operating expenditures and Unincorporated Area General Fund budgeted reserves of between 3% and 8% of operating expenditures. Additional policies include the assessment of impact fees at such levels as allowed by law and supported by studies, and prioritizing gas taxes for payment of debt service on the Series 2012 and 2014 Gas Tax Revenue and Refunding Bonds. For enterprise operations such as the Water and Sewer District and Solid and Hazardous Waste Management, that do not receive support from general government sources, budgeted reserves are targeted to a range of forty-five to ninety days of operating expenditures. Debt administration policies include the limitation of the debt repayment period to the useful life of the underlying assets and the establishment of a 5% benchmark for net present value savings generated by refinancing. The Collier County Debt Management Policy provides that a smaller net present value savings may be considered on a case -by -case basis. Consistent with Collier County's Debt Management Policy, outstanding debt is continually monitored in relation to existing conditions in the debt market. When sufficient cost savings can be realized debt will be refinanced. In addition, the debt policy establishes a maximum ratio of total general governmental debt service to bondable revenues from current sources of 13%. The Clerk of the Circuit Court's Finance and Accounting Department monitors the daily cash needs of the County and invests the County's funds in accordance with the Collier County Investment Policy. The primary objective of the investment policy is the preservation of capital and the protection of investment principal. Authorized investments include certificates of deposit, the Local Government Funds Surplus Trust Fund (Florida PRIME), U.S. Treasury securities, U.S. agency securities, commercial paper, corporate bonds and bankers' acceptances. The par weighted average maturity of the total managed portfolio, to first call or maturity, was .17 years as of September 30, 2020. The total return for fiscal year 2020 was 1.55%, a reflection of overall market interest rate decreases in fiscal year 2020 due to the COVID-19 pandemic. Investment income of $19.1 million was realized during fiscal year 2020. Changes in the fair value of investments are recorded as part of interest income in the financial statements. MAJOR INITIATIVES While the County is currently focused on many initiatives, some of the most significant include the following: - Development of the Golden Gate Golf Course property, workforce and first responder housing and mental health initiatives - Construction of the Heritage Bay governmental facilities campus - Upgrades to Information Technology infrastructure and the County's various management, financial and accounting software - Completion of the construction, and operation, of the Big Corkscrew Regional Park and the Paradise Coast Sports Complex - Public safety capital projects including a new evidence facility for the Sheriff - The extension of Vanderbilt Beach Road and bridge rehabilitation and replacement - Enhancements in storm -water capital infrastructure and maintenance service levels - Construction of utility infrastructure in the County Water and Sewer District's northeast service area - Design the expansion of water and wastewater treatment in the Golden Gate service area AWARDS GFOA Certificate of Achievement: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2019. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report whose contents conform to program standards. The Comprehensive Annual Financial Report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Collier County has received this award for the past thirty-four years, from fiscal year 1986 to 2019. We believe our current report conforms to the Certificate of Achievement program requirements, and we are submitting it to the GFOA for consideration for an award again this year. iv Distinguished Budget Presentation Awards: The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to Collier County for its annual budget for the fiscal year beginning October 1, 2019. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. Collier County has received this award for the last thirty-four consecutive years. The Government Finance Officers Association of the United States and Canada presented an award for Distinguished Presentation to the Office of the Collier County Clerk of the Circuit Court and Comptroller for its annual budget for the fiscal year beginning October 1, 2019. In order to receive this award, a government unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. The Distinguished Budget Presentation Award is valid for a period of one year only. The Clerk's Office has received this award for the last eighteen consecutive years. ACKNOWLEDGEMENTS The preparation and publication of this Comprehensive Annual Financial Report represents a significant effort by the Finance and Accounting Department as well as numerous County personnel who contribute to its production. In particular, we would like to express our appreciation to Edith Manuel, Finance Manager, Suzanne Boothby, Grants Manager, Leslie Miller, Operations Manager, Raymond Milum, Jr., Accounting Manager and all of the staff of the Finance and Accounting Department. Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Deputy County Manager, Department Heads and the Division Directors for their assistance throughout the year in matters pertaining to the financial affairs of the County. We hope you find this report informative, accurate and easily readable. If you should have any questions related to this report or if additional information is desired, do not hesitate to contact Derek M. Johnssen, Director of Finance and Accounting, at 239.252.7863. Respectfully, Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Derek M. Johnssen, CPA Deputy Clerk, Director of Finance and Accounting Kelly Jones, CGFO Deputy Clerk, Assistant Director of Finance and Accounting v Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Collier County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2019. This was the thirty-fourth consecutive year that the government 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. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. w Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Clerk of the Circuit Court Florida For its Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Executive Director/CEO 0 d C N 0 C ° O EIM ` C `m d E u o a c w E N m r N 'o v E m o m `�° m d E o m ?i d a U uu ENo vExN m a E yj E> an d N d d F o m E I = d r E ° a m E 3 w ° U O C7 m ° N•E d uC7Ga pO N O 8 a LL N O E d co E a a c O U U W m a '^ c - N N o N c C an d Y y a- m E 'o Y w ° E x .m+ O w `° N U N N Lu U N O d E ow U N z Q dacn c w U O C N @ d N W e N O CM O N m G> d a� c G R N N a �O M m j Y E d V -a N E x m y d a0UL ca amia N>a'L Fc a 00N — d 2 —d Q c x a M M °' w m i v m N o d a L 0 m N d _T Y Z .T 2 U o a d 'm -Vi E 9 d o E > E m {.J li 1� L a a' d y m j U 0 ~ ° 0. 'w Z L d Od a mOi N a �WEmG om cT M� m d °n N s mE rnro — a O mNN m N 0 E J Q d a W O O J m N m 0 A m O O a U U C U �' Y O �20 Z c a` 0 QO c d ° A3 .2 d U mp m a d m N ` a c 'a c d d m n 0.LL c y '° Yo u I G d> a c pa C U N d 3 K O y C R N O M d c N N d N E-U W E C i0 •Ou d w C 'U � m C _= ° m 2 C N MD c '° m � .c_ c w a d ma c c c m ° W 'O d p LL coN C o m L 0, d O W m d 16 C N C rL F O O> O a U 0 IX O T O 10 d C E V O C Ol O c c O a 3Ea° °dma N O N a0 N N a U C a m m a a H d` T O' N Q N m O �[ Qw Qoo y O U d If N N J m Q d O ~ IL` c d N o •- Z r m 0. Cd E0 Ol N C 0�� n D U 196 �p a M w c N G V d am c d E d 0 y� wa`xd`° cTi — E c r m s E n1 G rn Y c N aci OM°° y m a m N d c m m= °1 ) E `" y a m c m c Y CO L (� m C r2� W` o a d O M EE dd o`w E 2m a o0 m a m m ics% Ix a � c a U) > N N V Co 0 Y Q Financial Section 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ CliftonLarsonAllen LLP CLAconnect.com #AV INDEPENDENT AUDITORS' REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business - type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida, (County) as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the entity'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. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. �A member of Nexia International Honorable Board of County Commissioners Collier County, Florida Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principle As discussed in Note 1 to the financial statements, in 2020 the County adopted new accounting guidance for leases. The guidance requires lessees to recognize a right -to -use lease asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis (MD&A) on pages 4 — 13, the schedules of the County's proportionate share of the net pension liability and of County contributions on page 81, and the schedules of other postemployment benefits total OPEB liability and related ratios for the retiree health plans on page 82 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 County's basic financial statements. The combining and individual nonmajor fund financial statements and other supplemental information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Local Governmental Entity Audits, Rules of the Auditor General of the State of Florida, is also presented for purposes of additional analysis and is not a required part of the basic financial statements. 2 Honorable Board of County Commissioners Collier County, Florida Other Matters (Continued) Other Information (Continued) The combining and individual nonmajor fund financial statements and other supplemental information and the schedule of expenditures of federal awards and state financial assistance are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 27, 2021, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. 4 � !4 �la 4, � � � LLB CliftonLarsonAllen LLP Naples, Florida April 27, 2021 MANAGEMENT'S DISCUSSION AND ANALYSIS (UNAUDITED) As Clerk of the Circuit Court and Comptroller of Collier County, Florida, I present the readers of the County's financial statements this narrative overview and analysis of the financial activities of Collier County for the fiscal year ended September 30, 2020. Readers are encouraged to consider the information presented in this narrative in conjunction with additional information offered in the letter of transmittal, found on pages i-vi of this report. Financial Highlights • Collier County's assets and deferred outflows exceeded its liabilities and deferred inflows as of September 30, 2020 by $2,942,312,493. Of this amount, $191,971,075 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $18,372,777 from the previous year. • The County's total net position increased by $169,792,728 when compared to fiscal year 2019, with a $116,982,271 increase from governmental activities and a $52,810,457 increase resulting from business -type activities. • As of September 30, 2020, Collier County's governmental fund financial statements showed combined ending fund balances of $777,929,348, an increase of $72,733,021 over the previous fiscal year. Of the total combined ending governmental fund balance, $104,298,625 is reported as unassigned. • The General Fund reported an unassigned fund balance of $104,298,625 at September 30, 2020, an increase in unassigned General Fund balance of $591,393 when compared to September 30, 2019. • Total bonded debt, notes, outstanding loans and capital leases owed by Collier County decreased by $35,367,224 during fiscal year 2020, with a decrease in governmental activities debt of $19,844,085 and a decrease in business -type activities debt of $15,551,575. Additional information on debt activity can be found in Note 7 to the financial statements beginning on page 53. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction and explanation of Collier County's basic financial statements. Collier County's basic financial statements include government -wide and fund financial statements, as well as notes to the basic financial statements. Government -Wide Financial Statements Government -wide financial statements are designed to provide the reader an overview of the financial position of the County and are similar to private sector financial statements. These statements are comprised of a Statement of Net Position and a Statement of Activities and are found on pages 16 to 19 of this report. The Statement of Net Position shows the financial position of Collier County as of September 30, 2020. The statement shows the County's assets plus deferred outflows of resources less its liabilities plus deferred inflows of resources, with the difference being reported as net position. Changes in net position are useful indicators of financial condition. The Statement of Activities follows the Statement of Net Position and reports the changes in net position over the fiscal period. All changes in net position are reported as soon as the underlying events that gave rise to the change occur, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported for some items, such as accounts receivable, notes receivable or accrued unused vacation and sick leave, that will manifest themselves in cash inflows and outflows, respectively, in future fiscal periods. These statements distinguish Collier County functions that are supported by taxes and intergovernmental revenues (governmental activities), from business -type activities, which are intended to have their costs primarily recovered through user fees and charges. Governmental activities reported in the financial statements are general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Business -type activities in Collier County include water and sewer, solid waste collections, airport operations, transit operations and emergency medical services. Fund Financial Statements A fund is a group of related accounts used to maintain control over resources that have been segregated to meet specific objectives. As dictated by generally accepted accounting principles, Collier County uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The funds of the County can be divided into the following three categories: governmental, proprietary and fiduciary. Governmental funds Governmental funds, presented on pages 20 to 28, account for substantially the same functions as governmental activities reported under the government -wide Statement of Net Position and Statement of Activities. The difference is that the governmental fund financial statements focus on inflows and outflows of expendable resources, as well as balances of expendable resources available at the end of the fiscal year, on a near term basis. As such, these statements present a narrower view of financial condition, but are nonetheless useful in evaluating Collier County's near term financing requirements and available resources. Comparison between the two sets of financial statements allows the reader to better assess the future impact of the government's nearterm financial decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures and changes in fund balances provide a reconciliation to the respective government -wide financial statements to facilitate comparison. Governmental funds presented individually in Collier County's statements include four major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies and the Infrastructure Sales Tax fund. There are many smaller governmental funds under Collier County management and they are aggregated in a total column named "other governmental funds". Combining statements for these other governmental funds have been presented elsewhere in this report. Collier County adopts an annual budget as described in Note 1 to the financial statements. A budgetary comparison statement has been provided for the General Fund and each major special revenue fund to demonstrate compliance with this budget. Budgetary comparison schedules for any non -major governmental fund required to adopt an annual budget is presented in the combining statements presented elsewhere in this report. Proprietary funds Collier County maintains two different types of proprietary funds, enterprise and internal service, which are reflected on pages 29 to 33 of this report. Enterprise funds report, with more detail, the same functions presented as business -type activities in the government -wide financial statements for water and sewer, solid waste disposal, emergency medical services, transit and the airport authority. The Collier County Water and Sewer District Fund, the Solid Waste Disposal Fund and the Emergency Medical Services Fund are presented individually as major funds. Internal service funds are primarily maintained to allocate and accumulate costs internally for Collier County. The County uses internal service funds to account for health insurance, worker's compensation insurance, property and casualty insurance, fleet operations and information technology. The internal service funds are presented in total in the proprietary fund financial statements, but may be viewed on a combining basis elsewhere in the report. Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside of Collier County government. These funds are not presented in the government -wide financial statements as they do not represent resources available to support Collier County functions. The fiduciary funds are presented on page 34 of this report. All of the County's fiduciary funds are agency funds. The accounting used for agency funds is based on the concept that assets equal liabilities when the government is acting in a fiduciary capacity. Notes to the Financial Statements The notes provide additional information essential to a full understanding of the data provided in both the government -wide and fund financial statements. The notes appear on pages 35 to 78 of this report. Other Information The combining and individual nonmajor fund financial statements and schedules mentioned above present more detailed views of nonmajor governmental and enterprise funds and begin on page 85. This section contains combining balance sheets and statements of revenues, expenditures and changes in fund balance for governmental funds, including budgetary comparisons, and combining statements of net position and statements of revenues, expenses and changes in fund net position for enterprise funds. Also included are combining financial statements for internal service and agency funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical and Single Audit sections of this report. The statistical section has been prepared in accordance with Governmental Accounting Standards Board Statement No. 44, Economic Condition Reporting: The Statistical Section. This section contains data regarding financial trends, revenue capacity, debt capacity, demographic and economic conditions and operating indicators of the County. The Single Audit grants compliance section lists the expenditures of Federal Awards and State Financial Assistance during the fiscal year and presents grant compliance information as well as auditor reports. Government -Wide Financial Analysis As noted earlier, net position may serve overtime as a useful indicator of a government's financial position. Assets and deferred outflows exceeded liabilities and deferred inflows by $2,942,312,493 as of the fiscal year ending September 30, 2020 for Collier County. Positive balances were reported in all categories of net position in the governmental and business -type activities for fiscal year 2020 with the exception of a negative unrestricted net position for governmental activities. The negative unrestricted net position for governmental activities is primarily a result of reporting the long-term net pension liability associated with the County and should not be considered, solely, as evidence of financial difficulties. Collier County's net position at September 30, 2020 increased by $18,372,777 for unrestricted net position and increased $82,966,702 for restricted net position. Restricted net position consists of resources subject to external restriction on how they may be used while unrestricted net position may be used to meet the County's ongoing obligations. Increases in restricted net position were mainly due to a $67,195,728 increase in restricted net position related to Infrastructure Sales Tax capital projects. The Infrastructure Sales Tax was effective as of January 1, 2019. The decrease in unrestricted net position was mainly the result of an increase in pension expense. Collier County's investment in capital assets such as land, roads, buildings, parks and machinery and equipment, net of depreciation or any outstanding debt related to the asset, amounts to 73.0% of net position as of September 30, 2020, compared to 75.1 % as of September 30, 2019. During fiscal year 2020, the County's net investment in capital assets increased by $68,461,124, but decreased as a proportion of total net position due to the overall increase in combined restricted and unrestricted net position discussed above. Capital assets provide services to the citizens and consequently do not represent spendable resources and cannot be used to liquidate the debt incurred to purchase or construct capital assets. The following are Collier County's net position and changes in net position for the fiscal years ended September 30, 2019 and 2020, shown in condensed form: Collier County's Schedule of Net Position (in millions) Total Business -type Percentage Governmental Activities Activities Total Change 2020 2019* 2020 2019* 2020 2019* 2019-2020 Current and other assets $ 953.7 $ 834.0 $ 393.4 $ 382.7 $ 1,347.1 $ 1,216.7 10.7% Capital assets, net 1,676.8 1,618.7 1,013.1 966.8 2,689.9 2,585.5 4.0% Total assets 2,630.5 2,452.7 1,406.5 1,349.5 4,037.0 3,802.2 6.2% Deferred outflows of resources 125.5 112.1 23.9 23.3 149.4 135.4 10.34% Long-term liabilities 738.7 692.7 297.8 302.4 1,036.5 995.1 4.2% Current liabilities 134.9 100.2 53.5 43.2 188.4 143.4 31.49/o Total liabilities 873.6 792.9 351.3 345.6 1,224.9 1,138.5 7.6% Deferred inflows of resources 15.8 22.3 3.4 4.3 19.2 26.6 -27.8% Net position: Net investment in capital assets 1,331.2 1,303.0 818.1 777.8 2,149.3 2,080.8 3.3% Restricted 559.1 478.8 42.0 39.4 601.1 518.2 16.0 % Unrestricted (deficit) (23.7) (32.2) 215.6 2057. 191.9 173.5 10.6 Total net position $ 1,866.6 $ 1,749.6 $ 1,075.7 $ 1,022.9 $ 2,942.3 $ 2,772.5 6.1 % * The 2019 fiscal year has not been restated for the impact of GASB 87, Leases. Please see Note 19 on page 78 for further information Collier County's Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business -type Activities Total Change 2020 2019* 2020 2019* 2020 2019* 2019-2020 Revenues Program revenues: Fines, fees and charges for services $ 72.7 $ 77.0 $ 235.6 $ 227.5 $ 308.3 $ 304.5 1.2% Operating grants and contributions 34.0 30.3 11.5 46.6 45.5 76.9 -40.8% Capital grants and contributions 47.4 56.3 42.1 37.9 89.5 94.2 -5.0 % General revenues: Property taxes 376.1 356.1 - - 376.1 356.1 5.6% Other taxes and shared revenues 192.9 186.8 - - 192.9 186.8 3.3% Interest income 14.3 24.1 5.9 9.7 20.2 33.8 -40.2% Miscellaneous 11.5 17.6 0.9 1.5 12.4 19.1 -35.1% Total revenues 748.9 748.2 296.0 323.2 1,044.9 1,071.4 -2.5% Expenses General government 136.0 134.0 - - 136.0 134.0 1.5% Public safety 266.7 254.4 266.7 254.4 4.8% Physical environment 23.9 25.9 23.9 25.9 -7.7% Transportation 90.0 88.2 90.0 88.2 2.0 % Economic environment 10.2 8.9 10.2 8.9 14.6% Human services 20.9 17.7 20.9 17.7 18.1% Culture and recreation 56.9 59.4 56.9 59.4 -4.2% Interest on long-term debt 12.3 13.2 - - 12.3 13.2 -6.8 % Water and sewer - - 155.4 153.6 155.4 153.6 1.2% Solid waste 49.1 47.5 49.1 47.5 3.4% Emergency medical services 33.8 34.9 33.8 34.9 -3.2% Airport authority 6.2 6.4 6.2 6.4 -3.1% Mass transit - - 13.7 13.1 13.7 13.1 4.6% Total expenses 616.9 601.7 258.2 255.5 875.1 857.2 2.1 % Increase (decrease) in net position before net transfers 132.0 146.5 37.8 67.7 169.8 214.2 -20.7% Transfers, net (15.0) (16.8) 15.0 16.8 - - 0 % Change in net position 117.0 129.7 52.8 84.5 169.8 214.2 -20.7% Net position - beginning 1,749.6 1,619.9 1,022.9 938.4 2,772.5 2,558.3 8.4% Restatement of net position - - - - - - 0 % Net position - ending $ 1,866.6 $ 1,749.6 $ 1,075.7 $ 1,022.9 $ 2,942.3 $ 2,772.5 6.1% * The 2019 fiscal year has not been restated for the impact of GASB 87, Leases. Please see Note 19 on page 78 for further information Expenses and revenues, in the form of fees, fines, grants and contributions, for governmental activities are shown graphically by function. General revenues, such as property taxes, must be used to the extent that the fees, fines, grants and contributions do not cover the cost of the governmental function. Public safety is the largest category of expenses followed by general government. Revenues and Expenses Governmental Activities Fiscal Year 2020 300 250 N 200 O — 150 100 50 .� to��e CC°J � eae�a` � y`Ga� C9 Qr� �ooa Revenues 0 Expenses 4`e-`0o a e �a a 0 ,Z,J tea \0 e Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by infrastructure sales tax. Revenue by Type Governmental Activities Fiscal Year 2020 Infrastructure sales tax: in ooi Miscellaneous revenue: 6.0' Tourist Taxes: 3.5% Sales Taxes: 6.0% Gas Taxes: 2.8% Capital Grants and Contributions: 6.3% Operating Grants ai Contributions: 4.6°/ Fines, Fees and L narges for Services: 9.7% Property Taxes: 50.2% N. Revenues and expenses are shown by business -type activity. The Water and Sewer system is the largest business -type activity followed by the Solid Waste system. Revenues and Expenses Business -type Activities Fiscal Year 2020 250 200 50 0 Water and Sewer Solid Waste Emergency Medical Airport Authority Mass Transit Services Revenues 0 Expenses Revenues for business -type activities are shown graphically by type. The largest type of revenue is fines, fees and charges for services followed by capital grants and contributions. Revenue by Type Business -type Activities Fiscal Year 2020 Other Income: 2.3% Capital Grants and Contributions: 14.2% Operating Grants and Contributions: 3.9% Fines, Fees and Charges for Services: 79.6% 0j Governmental Activities The current year increase in the net position of governmental activities amounted to $116,982,271, an increase of 6.7% when compared to the previous year's net position. The previous fiscal years' increase in net position was 8.0%. The current years' increase is mainly due to the following: • Overall, revenues related to governmental activities increased by .1 %, or $668,412 while expenses increased by 2.5%, or $15,172,933. • Governmental activities revenues increased primarily due to the new levy of a 1 % Local Government Sales Tax. Effective January 1, 2019, the tax generated $81,735,267 in revenue during fiscal year 2020. Also contributing to the increase was an increase in total ad valorem taxes collected in fiscal year 2020, when compared to fiscal year 2019, of $20,041,665. The increase in ad valorem revenues was due to a 5.4% increase in county wide taxable value. • Public safety expenses increased by $12,395,571 largely due to increased costs related to the COVID-19 pandemic and pension costs. Human services expenses increased by $3,186,694, an 18% increase, primarily due to COVID-19 related expenses and community assistance programs. Business -type Activities The increase in net position related to business -type activities amounted to $52,810,457 in the aggregate, representing a 5.2% increase over the previous year's net position. The previous fiscal year's increase in net position was 9.0% . The current year's increase is mainly due to the following: • Collier County Water and Sewer District (District) saw an increase of $37,445,244 in net position. The increase in the District's net position is largely due to a 2.9% user fee rate increase that went into effect October 1, 2019, a 4.0% increase in water consumption, despite the COVID-19 pandemic, and the addition of 1,983 customer accounts. • Solid Waste Disposal experienced an increase of $9,239,464 in net position. This increase is primarily due to a 2.9% rate increase, $4,024,082 in operating grants and contributions related to reimbursements for Hurricane Irma and an 11,722 ton increase in waste added to the landfill as a result of COVID-19. Fund Financial Statement Analysis As mentioned above, Collier County utilizes fund accounting to ensure compliance with finance related legal requirements. Governmental Funds Governmental funds provide information on near term inflows, outflows and balances of spendable resources. Unassigned fund balance is a useful measure of net resources available to be spent at the end of the fiscal year. Governmental funds consist of the General Fund, Special Revenue Funds, Permanent Funds, Debt Service Funds and Capital Project Funds. As of September 30, 2020, Collier County governmental funds reported combined fund balances of $777,929,348, an increase of $72,733,021 when compared to prior year combined fund balances. The governmental funds had non -spendable fund balances of $6,268,849 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $561,567,428 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $210,093,071 in fund balance, $41,517,163 is classified as committed, $64,277,283 is recorded as assigned and $104,298,625 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2020: • The General Fund is the primary operating fund of Collier County. At September 30, 2020, total fund balance in the General Fund was $119,828,756, of which $104,298,625 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 26.8%. The total fund balance increased by $12,162,754 or 11.3% , compared to the September 30, 2019 total fund balance. The General Fund's total fund balance increased due to increased Ad Valorem Tax collections of $20,041,665. This increase was directly related to a 5.4% increase in county wide taxable value. The increase in revenue was offset by a $4.4 million increase in the Sheriff's overtime and operating expenditures as a result of COVID-19 and approximately $3 million spent on cameras and radios. • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle. During fiscal year 2020, the Bayshore Gateway Community Redevelopment Agency collected $1,995,700 in tax increment revenues. In addition, the agency received $414,835 in miscellaneous revenues for rents and a land dispute settlement and earned $63,955 in interest income. Operating expenditures of $1,240,665, mainly consisting of personal services and improvements to the water lines and fire hydrants within the district. In addition, capital expenditures of $1,170 were made for computer equipment. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2020, the Immokalee Community Redevelopment Agency collected $756,600 in tax increment revenues. Operating 10 expenditures of $314,732, mainly personal services and general operating expenditures, were associated with the Immokalee Community Redevelopment Agency. In addition, capital expenditures of $76,486 were made for audio equipment for the Immokalee Sports Complex and sidewalk projects in the district. In addition, debt service expenditures of $34,991 were made for leased office space. • The Infrastructure Sales Tax fund was established to account for the proceeds of the 1 % Infrastructure Sales Tax. The tax was effective as of January 1, 2019 and fiscal year 2020 collections were $81,735,267. The Infrastructure Sales Tax Fund earned interest revenue of $1,167,408 and capital outlay totaled $20,208,938. Capital outlay included $15,701,425 for the Big Island Corkscrew Regional Park, $1,639,639 for various air conditioning improvements and $1,381,677 for the Sheriff's Forensics Building and otherjail improvements, $932,375 for hurricane resiliency projects, $$484,843 in electrical system upgrades for the main campus and $68,979 for the museum roof. Proprietary Funds Proprietary fund statements provide the same information as the business -type activities in the government -wide financial statements, but in greater detail, and on a fund basis for enterprise funds. At September 30, 2020, total net position amounted to $1,077,516,482 for enterprise funds, as compared to $1,025,727,074, as of September 30, 2019, an increase of $51,789,408. Net position changes as a result of operations, non -operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2020, the County Water and Sewer fund's activities represent the largest share of the increase in the business -type net position. For the year ended September 30, 2020, the Collier County Water and Sewer District (District) reported capital grants and contributions of $32,960,705, which consists of water and sewer impact fees of $16,324,503, $16,625,111 in developer infrastructure contributions and other capital contributions of $11,091. Net Operating Income/(Loss) 2020 2019* County Water and Sewer $ 13,721,643 $ 10,116,153 Solid Waste Disposal 4,869,424 5,455,232 Emergency Medical Services (20,735,848) (21,091,679) Non -major enterprise funds (13,924,783) (13,464,760) Total $ (16,069,564) $ (18,985,054) * The 2019 fiscal year has not been restated for the impact of GASB 87, Leases. Please see Note 19 on page 78 for further information. The Collier County Water and Sewer District's net operating income increased by $3,605,490, or 35.6%, when compared to fiscal year 2019. The increase in net operating income was primarily the result of a 2.9% rate increase effective October 2019, increased water usage of 4.0% and the addition of 1,983 customer accounts offset by a 2.2% increase in total operating expenses, including depreciation and amortization. County Water and Sewer payments in lieu of taxes paid to the General Fund of $8,363,000 were reclassified from operating expense to transfers in for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Solid Waste Disposal fund's net operating income decreased by $585,808, or 10.7%, when compared to fiscal year 2019. The decrease in net operating income was primarily the result of a 2.9% rate increase offset by a 5.5% increase in total operating expenses, including depreciation and amortization. An additional $376,022 in operating expense is as a result of 11,722 tons of waste being added to the landfill due to COVID-19. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $415,000 were reclassified from operating expense to transfers in for financial statement purposes. These payments are reclassified pursuant to generally accepted accounting principles as the amount charged is not an approximation of services rendered. The Emergency Medical Services fund's net operating loss decreased by $355,831, or 1.7%, when compared to fiscal year 2019. The decrease in net operating loss was brought by the decrease in personal services and operating costs as a result of a reduced medflight service call volume. 11 Capital Assets Collier County's financial statements present capital assets in two distinct groups, those that are depreciated and those not subject to depreciation. Buildings and equipment are examples of assets that are depreciated and land and construction in progress are examples of assets not depreciated. Collier County's investment in capital assets for the governmental and business -type activities amounted to $2,689,933,721, net of accumulated depreciation. This investment in capital assets includes land, buildings and improvements, water and wastewater plants, machinery and equipment, parks, roads, beach renourishment and drainage structures. Investment in capital assets for the current fiscal year net of accumulated depreciation increased by $104,379,507, when compared to the previous year. There was an increase in the governmental activities capital assets of $58,038,566, or 3.6%, while the business -type activities capital assets increased by $46,340,941, or 4.8%. The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization as construction in process of $80,552,462 in governmental activity costs including $36,334,566 related to the construction of the Paradise Coast Amateur Sports Complex, $20,826,541 for Golden Gate Boulevard improvements and $5,852,436 for HVAC projects at various County buildings. The remaining $17,538,919 is related to $7,392,506 in other transportation projects, $4,807,247 in beach renourishment, $2,463,788 in public safety projects and $2,875,378 in other capital projects. • The business -type activities capitalized $13,622,717 of construction in process during fiscal year 2020 including $2,293,913 for the Carica Pump Station Water Main Improvements, $3,396,096 for the Western Wastewater Interconnect between the North and South Wastewater Reclamation Facilities, and $5,739,622 in other County Water and Sewer projects. The remaining $2,193,086 was made up of $943,311 in various Solid Waste projects and $1,249,775 in various Mass Transit projects. • Developer donated water and wastewater infrastructure in fiscal year 2020 amounted to $16,625,111 and $16,452,557 in fiscal year 2019. Subdivisions are required to meet County standards when installing water and wastewater services. Once completed and inspected, these assets are donated to and accepted by the County. • Collier County acquired $5,831,649 of land and non -depreciable assets in fiscal year 2020, compared to $33,138,026 for fiscal year 2019. Fiscal year 2020 land purchases were primarily related to the acquisition of conservation lands and various transportation projects. Additional information regarding Collier County's capital assets can be found in Note 6 beginning on page 52 of this report. Debt Administration At September 30, 2020, Collier County had total bonded debt, notes, loans, capital leases and financed purchase obligations of $592,391,158, a decrease of $35,367,224 from the previous year. The following table illustrates the balances of all bonds, notes, loans, capital leases and financed purchase obligations for the fiscal years ended September 30, 2020 and 2019: Outstanding Debt 2020 2019* Limited General Obligation Bonds $ 1,060,000 $ 1,559,866 Revenue Bonds 348,349,213 366,278,364 Direct Placement Loans Payable 160,773,962 175,310,427 Commercial Paper and Notes Payable 74,010,065 84,283,331 Capital Leases 8,063,564 - Financed purchase obligations 134,354 326,394 Total $ 592,391,158 $ 627,758,382 * The 2019 fiscal year has not been restated for the impact of GASB 87, Leases. Please see Note 19 on page 78 for further information. Collier County's Special Obligation Revenue Bonds carry ratings of Aa1, AAA and AA by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2017 and 2019 Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aa1, AAA and AA by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The County's Series 2012 Gas Tax Revenue Bonds carry ratings of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. The Series 2014 Gas Tax Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank and therefore carries an implied rating of A2, A+ and AA- by Moody's, Standard and Poor's and Fitch Ratings, Inc., respectively. Collier County's Tourist Development Tax Revenue Bonds carry ratings of Aa3 and AA+ by Moody's and Fitch Ratings, Inc., respectively. Collier County's Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody's and Fitch Ratings, Inc. The Series 2013, 2015 and 2018 County Water and Sewer Revenue Bonds were issued as direct placements with commercial banks and, as such, carry an implied rating of Aaa and AAA by Moody's and Fitch Ratings, Inc., respectively. 12 The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. Further information regarding Collier County's long-term debt can be found in Note 7 beginning on page 53 of this report. General Fund Budgetary Highlights During the 2020 fiscal year, the General Fund expenditure appropriations increased by $2,108,878. Significant variances between the original budget and the final amended budget are listed below: • $564,905 decrease in Other general administration operating to provide funding for land acquisition. • $977,100 increase in Sheriff's personal services related to special detail duties. • $389,911 increase in Economic Development operating due to re -budgeting of lapsed appropriations from the previous fiscal year and to implement the Florida Gulf Coast University's school of Entrepreneurship program at the Naples Accelerator. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2020. Tax revenues were under budget by $12,667,922 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum 4.0%to 1.0%, depending on the date of payment. Intergovernmental revenues were $5,773,471 over the amount budgeted primarily due to consertative budgeting of the half cent sales tax revenues. The Tax Collector capital outlay was $5,772,618 under budget due to the Heritage Bay building project not being completed by the end of fiscal year 2020. The Tax Collector has re -budgeted those funds in fiscal year 2021 to finish construction. Economic Factors and Year 2021 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2021 budget: • A 3.0% increase in countywide taxable property values. • Millage neutral General Fund tax rate. • A greater of $1,200 per employee or 2% general wage adjustment along with a .8% market based pay plan maintenance component. • Maintain health care program contributions at 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2020, the General Fund unassigned fund balance increased by $591,393 to $104,298,625. As of March 24, 2021, $92,399,811 of the fiscal year 2020 unassigned fund balance has been appropriated as carryforward for fiscal year 2021, with $57,261,812 budgeted in reserves. Contact Information This financial report is intended to give the user a general overview of Collier County Government's finances. Any questions resulting from review of this information may be addressed to: Collier County Clerk of the Circuit Court and Comptroller Department of Finance and Accounting 3299 Tamiami Trail East, Suite #403 Naples, Florida 34112-5746 Our office may also be contacted via the internet at www.colliercierk.com. 13 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ asic Financial Statements COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2020 ASSETS Current assets: Cash and investments Cash with fiscal agent Trade receivables, net Special assessments receivable Interest receivable Due from other governments Lease receivable Internal balances Deposits Inventory Prepaid costs Restricted assets: Cash and investments Trade receivables, net Notes receivable Interest receivable Due from other governments Deposits Inventory Inventory for resale Prepaid costs Total current assets Noncurrent assets: Restricted assets: Cash and investments Notes receivable Impact fee receivable Special assessments receivable Lease receivable Notes receivable Unamortized bond insurance Capital assets: Land and non -depreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources The notes to the financial statements are an integral part of this statement. Primary Government Governmental Business -type Component Activities Activities Total Units $ 301,078,611 $ 259,124,950 $ 560,203,561 $ 228,139 10,777,635 - 10,777,635 - 2,245,997 16,647,339 18,893,336 - 91,388 91,388 333,751 453,429 787,180 12,193,573 1,772,912 13,966,485 214,816 201,248 416,064 2,148,636 (2,148,636) - 16,493 2,000 18,493 1,090,238 7,354,527 8,444,765 1,340,616 76,184 1,416,800 42,093,555 9,018,497 51,112,052 2,666,764 - 2,666,764 54,612 - 54,612 550,674 21,037 571,711 22,236,927 5,794,785 28,031,712 1,875 - 1,875 957,241 957,241 9,796,693 9,796,693 3,091 - 3,091 - 409,801,798 298,409,660 708,211,458 228,139 529,179,629 93,533,662 622,713,291 266,449 - 266,449 6,145,643 - 6,145,643 1,405 112,683 114,088 6,806,499 1,382,638 8,189,137 1,510,093 - 1,510,093 3,114 3,114 555,768,355 178,899,509 734,667,864 1,121,037,098 834,228,759 1,955,265,857 2,220,718,285 1,108,157,251 3,328,875,536 - 2,630,520,083 1,406,566,911 4,037,086,994 228,139 10,481,743 2,971,148 13,452,891 10,338,781 268,519 10,607,300 104,702,702 20,624,038 125,326,740 $ 125,523,226 $ 23,863,705 $ 149,386,931 $ 16 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2020 Primary Government Governmental Business -type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 21,901,821 $ 19,720,080 $ 41,621,901 $ Wages payable 3,215,503 2,697,702 5,913,205 Retainage payable 978,899 3,728,629 4,707,528 Due to other governments 3,208,485 27,455 3,235,940 Self-insurance claims payable 8,330,644 - 8,330,644 Compensated absences 11,283,546 2,946,420 14,229,966 Financed purchase obligation 27,225 78,693 105,918 Notes payable 508,308 6,891,750 7,400,058 Unearned revenue 143,711 57,340 201,051 Total OPEB liability 1,508,674 164,229 1,672,903 Net pension liability 1,214,803 148,674 1,363,477 Landfill post -closure liability - 52,274 52,274 Interest payable 5,256,803 - 5,256,803 Leases payable 1,078,402 105,396 1,183,798 Bonds and loans payable 25,306,000 4,874,974 30,180,974 Liabilities payable from restricted assets: Accounts payable 22,011,223 3,131,495 25,142,718 Wages payable 1,999,584 10,560 2,010,144 Retainage payable 6,526,473 2,566,307 9,092,780 Refundable deposits 786,693 131,642 918,335 Interest payable - 1,784,419 1,784,419 Due to other governments 3,885,253 18,952 3,904,205 Unearned revenue 15,717,585 381,994 16,099,579 Notes payable - 2,367,097 2,367,097 Bonds and loans payable - 1,624,989 1,624,989 Total current liabilities 134,889,635 53,511,071 188,400,706 Noncurrent liabilities: Arbitrage rebate liability - 104,746 104,746 Self-insurance claims payable 2,033,713 - 2,033,713 Compensated absences 21,020,604 736,605 21,757,209 Financed purchase obligation 28,436 - 28,436 Leases payable 6,176,975 702,791 6,879,766 Landfill post -closure liability - 1,603,757 1,603,757 Total OPEB liability 33,422,273 2,642,344 36,064,617 Net pension liability 354,449,427 70,957,130 425,406,557 Notes payable 2,782,910 50,360,000 53,142,910 Bonds and loans payable, net 318,837,392 170,639,820 489,477,212 Total noncurrent liabilities 738,751,730 297,747,193 1,036,498,923 Total liabilities 873,641,365 351,258,264 1,224,899,629 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 6,823,844 1,548,183 8,372,027 Deferred inflows of resources related to OPEB 1,028,926 121,506 1,150,432 Deferred inflows of resources related to pensions 7,987,759 1,751,585 9,739,344 Total deferred inflows of resources 15,840,529 3,421,274 19,261,803 NET POSITION Net investment in capital assets 1,331,162,890 818,092,496 2,149,255,386 Restricted for: Growth related capital expansion 167,056,812 23,707,681 190,764,493 Transportation capital projects 49,750,301 - 49,750,301 Community development 35,985,839 35,985,839 Tourist development 88,860,331 88,860,331 Conservation Collier 30,187,191 30,187,191 Community redevelopment 13,981,878 13,981,878 Infrastructure sales tax capital projects 127,207,459 - 127,207,459 Grants 11,963,697 3,406,910 15,370,607 Debt service 7,383,688 14,621,281 22,004,969 Court programs 14,000,372 - 14,000,372 Public safety 6,315,220 6,315,220 Nonexpendable purposes - other 1,794,264 1,794,264 Special revenues - other 4,563,108 - 4,563,108 Renewal and replacement - 300,000 300,000 Unrestricted (23,651,635) 215,622,710 191,971,075 228,139 Total net position $ 1,866,561,415 $ 1,075,751,078 S 2,942,312,493 $ 228,139 17 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2020 FUNCTIONS/PROGRAMS Primary Government: Governmental Activities: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Interest and fiscal charges Total governmental activities Business -type Activities: Water and sewer Solid waste Emergency medical services Airport authority Mass transit Total business -type activities Total primary government Component Units: Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total component units The notes to the financial statements are an integral part of this statement. Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions $ 135,978,181 $ 39,203,921 $ 7,386,523 $ 4,948,231 266,736,071 25,036,939 4,283,573 4,718,602 23,877,865 1,294,484 6,462,201 1,496,447 89,953,647 1,425,210 6,732,037 23,580,320 10,180,524 192,906 2,725,008 42,114 20,908,759 471,509 5,779,550 - 56,899,804 5,055,321 655,535 12,557,093 12,320,751 - - - 616,855,602 72,680,290 34,024,427 47,342,807 155,367,978 162,701,820 1,948,493 32,845,097 49,158,295 53,885,607 4,024,082 - 33,760,693 13,068,699 1,416,480 12,765 6,168,174 4,959,496 191,927 5,454,311 13,715,519 977,628 3,966,993 3,786,391 258,170,659 235,593,250 11,547,975 42,098,564 $ 875,026,261 $ 308,273,540 $ 45,572,402 $ 89,441,371 $ 4,706 $ 60,500 $ $ 4,765 - 4,675 10,000 17,265 - $ 31,411 $ 70,500 $ $ General revenues: Property taxes Gastaxes Sales tax Tourist taxes Communications services tax Infrastructure sales tax State revenue sharing Othertaxes Interest income Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning, as previously stated Restatement of net position due to implementation of GASB 87 Net position - beginning, as restated Net position - ending 18 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -type Component Activities Activities Total Units $ (84,439,506) $ $ (84,439,506) $ (232,696,957) (232,696,957) (14,624,733) (14,624,733) (58,216,080) (58,216,080) (7,220,496) (7,220,496) (14,657,700) (14,657,700) (38,631,855) (38,631,855) (12,320,751) (12,320,751) (462,808,078) (462,808,078) 42,127,432 42,127,432 8,751,394 8,751,394 (19,262,749) (19,262,749) 4,437,560 4,437,560 (4,984,507) (4,984,507) 31,069,130 31,069,130 (462,808,078) 31,069,130 (431,738,948) $ 55,794 (4,765) 5,325 (17,265) $ 39,089 $ 376,140,421 $ $ 376,140,421 $ 21,004,862 21,004,862 45,227,690 45,227,690 26,062,312 26,062,312 4,061,901 4,061,901 81,735,267 81,735,267 12,342,912 12,342,912 2,375,699 2,375,699 - 14,336,265 5,870,402 20,206,667 265 11,523,465 850,480 12,373,945 - (15,020,445) 15,020,445 - - 579,790,349 21,741,327 601,531,676 265 116,982,271 52,810,457 169,792,728 39,354 1,749,571,269 1,022,940,621 2,772,511,890 188,785 7,875 7,875 - 1,749,579,144 1,022,940,621 2,772,519,765 188,785 $ 1,866,561,415 $ 1,075,751,078 $ 2,942,312,493 $ 228,139 19 COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2020 Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Infrastructure Governmental Governmental Fund Agency Agency Sales Tax Funds Funds ASSETS Cash and investments $ 125,369,920 $ 3,731,244 $ 1,221,195 $ 115,842,837 $ 546,310,776 $ 792,475,972 Cash with fiscal agent - - - - 10,777,635 10,777,635 Receivables: Interest 127,929 4,071 1,237 103,574 539,730 776,541 Trade, net 832,514 - - - 2,900,449 3,732,963 Notes 1,510,093 321,061 1,831,154 Impact Fee - 6,145,643 6,145,643 Special assessments - 1,405 1,405 Lease 474,249 6,547,066 7,021,315 Due from other funds 3,377,388 - 102,015 8,885,209 12,364,612 Due from other governments 6,725,112 13,694 - 12,765,107 14,890,341 34,394,254 Deposits 16,493 - 625 - 1,250 18,368 Inventory for resale - 9,566,960 - 229,733 9,796,693 Inventory 545,774 - 1,133,177 1,678,951 Advances to other funds 689,900 1,430,560 2,120,460 Prepaid costs 33,252 - 3,091 36,343 Total assets $ 139,702,624 $ 13,315,969 $ 1,223,057 $ 128,813,533 $ 600,117,126 $ 883,172,309 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 12,872,915 $ 265,905 $ 23,638 $ 4,533,276 $ 23,971,880 $ 41,667,614 Wages payable 1,849,419 18,583 7,872 - 3,007,307 4,883,181 Due to other funds 1,539,625 363,346 - 11,752,517 13,655,488 Due to other governments 2,423,195 - 227 4,665,127 7,088,549 Unearned revenues 3,504 - - 15,724,281 15,727,785 Refundable deposits 717,161 1,500 - 68,032 786,693 Retainage payable - - 2,075 1,606,074 5,897,223 7,505,372 Advances from other funds - - 118,902 - 834,250 953,152 Total liabilities 19,405,819 649,334 152,714 6,139,350 65,920,617 92,267,834 Deferred inflows of resources: Unavailable revenue 5,640 6,145,643 6,151,283 Related to leases 462,409 6,361,435 6,823,844 Total deferred inflows of resources 468,049 12,507,078 12,975,127 Fund balances: Nonspendable 2,779,019 3,489,830 6,268,849 Restricted 1,087,185 12,666,635 1,070,343 122,674,183 424,069,082 561,567,428 Committed - - - - 41,517,163 41,517,163 Assigned 11,663,927 52,613,356 64,277,283 Unassigned 104,298,625 - 104,298,625 Total fund balances 119,828,756 12,666,635 1,070,343 122,674,183 521,689,431 777,929,348 Total liabilities, deferred inflows of resources and fund balances $ 139,702,624 $ 13,315,969 $ 1,223,057 $ 128,813,533 $ 600,117,126 $ 883,172,309 The notes to the financial statements are an integral part of this statement. 20 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2020 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and other non -depreciable assets S 473,415,268 Construction in progress 81,448,699 Depreciable assets, net of $1,125,419,183 in accumulated depreciation 1,099,634,139 Certain long-term assets are not financial resources and therefore are not reported in the governmental funds - unamortized bond insurance premium. Certain revenues will be collected after year-end, but are not available to pay for the current period's expenditures, and therefore are reported as deferred inflows in the funds. Certain liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in the governmental funds, but is recognized as an expenditure when due. All liabilities are reported in the statement of net position. Balances at September 30, 2020 are: Accrued interest on bonds Bonds, loans and notes payable Financed purchase obligations Lease obligations Compensated absences Total OPEB liability Pension liability Unamortized premium Unamortized deferred charges on refunding OPEB deferred outflows Pension deferred outflows OPEB deferred inflows Pension deferred inflows $ (5,256,803) (335,374,218) (55,661) (7,242,061) (31,717,237) (34,578,098) (348,717,127) (12,060,392) 777,929,348 1,654,498,106 3,114 6,151,283 (775,001,597) 10,481,743 10,305,105 102,727,417 (1,013,203) (7,795,345) Internal service funds are used by the County to charge self-insurance, fleet management, motor pool capital recovery and information technology services to individual funds. The assets, deferred outflows, liabilities and deferred inflows of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position is: 88,275,444 Total net position - governmental activities $ 1,866,561,415 The notes to the financial statements are an integral part of this statement. 21 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2020 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Principal Interest Fiscal charges Capital outlay Total expenditures Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Infrastructure Governmental Governmental Fund Agency Agency Sales Tax Funds Funds $ 316,893,677 $ 1,995,700 $ 756,600 $ 81,735,267 $ 102,211,522 $ 503,592,766 291,765 - - - 68,697,570 68,989,335 59,976,971 14,192 737 36,692,384 96,684,284 17,580,229 10,890 - 17,367,938 34,959,057 198,657 - - 2,135,005 2,333,662 3,052,660 63,955 19,199 1,167,408 8,875,156 13,178,378 - - - - 5,618,796 5,618,796 2,462,905 414,835 4,733 - 3,916,095 6,798,568 400,456,864 2,499,572 781,269 82,902,675 245,514,466 732,154,846 73,976,810 34,031,536 108,008,346 185,817,730 33,990,844 219,808,574 752,112 20,233,720 20,985,832 328,205 52,987,812 53,316,017 1,768,824 1,240,665 314,732 6,070,544 9,394,765 12,880,518 - - 7,361,402 20,241,920 16,136,157 30,109,466 46,245,623 767,436 34,297 25,705,048 26,506,781 96,247 694 12,634,372 12,731,313 - - - 21,470 21,470 17,682,078 1,170 76,486 20,208,938 91,086,910 129,055,582 310,206,117 1,241,835 426,209 20,208,938 314,233,124 646,316,223 Excess (deficit) of revenues over (under) expenditures 90,250,747 1,257,737 355,060 62,693,737 (68,718,658) 85,838,623 Other financing sources (uses): Leases 256,233 - - - 101,370 357,603 Sale of capital assets 229,055 5 483,394 712,454 Insurance proceeds 373,360 - - 1,730,249 2,103,609 Transfers in 14,713,951 212,000 85,000 129,980,627 144,991,578 Transfers out (93,660,592) (1,244,900) (121,600) (66,243,754) (161,270,846) Total other financing sources (uses) (78,087,993) (1,032,895) (36,600) - 66,051,886 (13,105,602) Net change in fund balances 12,162,754 224,842 318,460 62,693,737 (2,666,772) 72,733,021 Fund balances at beginning of year 107,666,002 12,441,793 751,883 59,980,446 524,356,203 705,196,327 Fund balances at end of year $ 119,828,756 $ 12,666,635 $ 1,070,343 $ 122,674,183 $ 521,689,431 $ 777,929,348 The notes to the financial statements are an integral part of this statement 22 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2020 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds $ 72,733,021 Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is allocated over their estimate useful lives and reported as depreciation and amortization expense. Capital outlay $ 129,055,582 Depreciation and amortization expense (81,785,085) 47,270,497 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. 2,180,497 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. (97,875) In the statement of net position, the gain or loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assets increase financial resources. The change in net position differs from the change in fund balances by the net book value of assets disposed. (1,123,660) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. 353,737 Debt proceeds provide current financial resources for governemntal funds, but issuing debt increases liabilities in the statement of net position. Repayment of principal on long-term debt is an expenditure in governmental funds, but a reduction of long-term liabilities in the statement of net position. Bond, loan and note principal payments 25,427,556 Lease proceeds (357,603) Payments on lease obligations 1,079,225 26,149,178 Certain amounts reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Compensated absences $ (761,745) OPEB expense (567,782) Pension expense (41,676,158) Accrued interest on bonds and loans 163,414 Amortization of bond insurance premium (2,491) Amortization of deferred charges on refunding (1,274,547) Amortization of premium 1,545,862 (42,573,447) The net revenues of internal service funds are reported with governmental activities. 12,090,323 Change in net position - governmental activities $ 116,982,271 The notes to the financial statements are an integral part of this statement. 23 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2020 Original Final Budget Budget Actual Variance Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Miscellaneous Total revenues Expenditures: Current: General government Board of County Commissioners personal services Board of County Commissioners operating Board of County Commissioners capital outlay County manager administrative personal services County manager administrative operating Corporate planning and improvement personal services Corporate planning and improvement operating Corporate planning and improvement capital outlay Budget and management personal services Budget and management operating Budget and management capital outlay Administrative services personal services Administrative services operating Administrative services capital outlay Human resources administration personal services Human resources administration operating Human resources administration capital outlay Clerk of the Circuit Court personal services Clerk of the Circuit Court operating Clerk of the Circuit Court capital outlay Property Appraiser personal services Property Appraiser operating Property Appraiser capital outlay Tax Collector personal services Tax Collector operating Tax Collector capital outlay County attorney personal services County attorney operating County attorney capital outlay Natural resource planning operating Circuit court operating County court operating State Attorney operating Public Defender operating Other general administrative personal services Other general administrative operating Facilities management personal services Facilities management operating Facilities management capital outlay Sheriff personal services Sheriff operating Sheriff capital outlay $ 329,561,600 $ 329,561,599 $ 316,893,677 $ (12,667,922) 371,100 371,100 291,765 (79,335) 54,203,500 54,203,500 59,976,971 5,773,471 14,885,955 16,346,355 17, 580,229 1,233,874 452,300 452,300 198,657 (253,643) 1,285,300 1,285,300 3,017,810 1,732,510 8,929,700 8,929,700 10,819,055 1,889,355 409,689,455 411,149,854 408,778,164 (2,371,690) 1,224,900 1,226,900 1,195,616 31,284 105,700 105,700 66,945 38,755 - 1,300 1,170 130 1,048,800 1,048,800 1,038,049 10,751 75,600 75,600 48,439 27,161 1,019,000 1,033,000 1,018,999 14,001 107,000 93,000 69,105 23,895 3,500 3,500 2,079 1,421 739,300 752,300 708,146 44,154 71,300 73,050 53,866 19,184 1,500 1,500 - 1,500 2,918,600 2,968,600 2,930,166 38,434 351,600 355,434 283,712 71,722 10,000 10,000 4,660 5,340 1,731, 900 1,731, 900 1,603,453 128,447 560,200 587,597 386,776 200,821 5,000 5,000 4,682 318 8,703,000 8,626,322 8,614,242 12,080 2,713,000 2,847,678 2,840,417 7,261 290,500 632,500 632,045 455 6,595,833 6,595,833 6,214,810 381,023 2,034,562 2,034,562 1,816,455 218,107 35,000 35,000 31,576 3,424 12,236,920 12,236,920 11,671,141 565,779 3,414,029 3,414,029 3,191,149 222,880 7,026,510 7,026,510 1,253,892 5,772,618 2,454,200 2,454,200 2,262,949 191,251 387,700 681,417 181,473 499,944 10,200 10,200 3,511 6,689 109,500 109,500 - 109,500 40,300 40,300 25,478 14,822 27,000 27,000 14,460 12,540 416,000 416,000 410,222 5,778 308,400 308,400 243,179 65,221 200,000 175,000 15,677 159,323 10,897,700 10,332,795 9,247,188 1,085,607 6,660,800 6,660,800 6,160,484 500,316 9,005,700 8,990,451 8,786,382 204,069 43,000 59,306 57,786 1,520 4,309,900 4,309,900 4,683,585 (373,685) 173,400 173,400 84,496 88,904 - - 2,025 (2,025) 24 (continued) COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2020 Original Final Budget Budget Actual Variance Supervisor of Elections personal services 2,499,600 2,434,600 2,359,405 75,195 Supervisor of Elections operating 2,057,300 1,954,490 1,905,743 48,747 Supervisor of Elections capital outlay 51,000 150,623 199,677 (49,054) Public services operations personal services 1,045,300 995,300 887,500 107,800 Public services operations operating 91,200 145,899 102,639 43,260 Public services operations capital outlay 6,300 7,711 7,236 475 Real property management personal services 703,500 703,500 668,998 34,502 Real property management operating 59,500 59,500 52,155 7,345 Total general government 94,580,754 94,722,827 84,043,838 10,678,989 Public safety Sheriff personal services 156,146,900 157,144,000 147,953,258 9,190,742 Sheriff operating 34,076,400 34,139,700 34,441,658 (301,958) Sheriff capital outlay 6,704,900 6,704,900 14,466,331 (7,761,431) Emergency management administration personal services 1,082,000 1,082,000 962,297 119,703 Emergency management administration operating 913,700 1,010,844 850,409 160,435 Emergency management administration capital outlay - 42,336 38,315 4,021 Helicopter operations operating 42,300 42,300 42,169 131 Medical examiner services operating 1,742,300 1,742,300 1,737,352 4,948 Total public safety 200,708,500 201,908,380 200,491,789 1,416,591 Physical environment Conservation and resource management personal services 627,900 641,900 618,700 23,200 Conservation and resource management operating 146,700 131,700 111,903 19,797 Conservation and resource management capital outlay 25,000 - - - Immokalee cemetery operating 23,200 23,200 21,509 1,691 Total physical environment 822,800 796,800 752,112 44,688 Transportation Alternative transportation modes personal services 344,600 344,600 305,996 38,604 Alternative transportation modes operating 26,400 26,400 22,209 4,191 Total transportation 371,000 371,000 328,205 42,795 Economic environment Veterans services personal services 330,000 330,000 275,977 54,023 Veterans services operating 57,900 59,447 34,848 24,599 Veterans services capital outlay 4,500 4,500 1,170 3,330 Economic development personal services 439,900 439,900 320,017 119,883 Economic development operating 1,555,100 1,945,011 1,354,782 590,229 Economic development capital outlay 5,000 3,830 24,560 (20,730) Total economic environment 2,392,400 2,782,688 2,011,354 771,334 Human services Health Care Responsibility Act operating 46,100 46,100 - 46,100 Domestic animal services personal services 2,385,800 2,385,800 2,141,242 244,558 Domestic animal services operating 1,163,500 1,164,305 1,027,801 136,504 Domestic animal services capital outlay 1,400 1,400 1,170 230 Health department operating 1,869,400 1,869,400 1,754,682 114,718 Mental health operating 2,423,200 2,335,934 2,335,934 - Client assistance personal services 1,060,800 1,063,800 1,036,100 27,700 Client assistance operating 4,581,100 4,692,212 4,307,686 384,526 Client assistance capital outlay 8,700 12,950 11,843 1,107 (continued) 25 COLLIER COUNTY, FLORIDA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2020 Public services division office personal services Public services division office operating Public services division office capital outlay Total human services Culture and recreation Library administration personal services Library administration operating Library administration capital outlay Beach and water park operations personal services Beach and water park operations operating Beach and water park operations capital outlay Parks maintenance personal service Parks maintenance operating Parks maintenance capital outlay Total culture and recreation Total expenditures Excess of revenues over expenditures Other financing sources (uses): Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance at beginning of year Fund balance at end of year Original Final Budget Budget Actual Variance 270,100 276,100 268,328 7,772 29,000 38,095 24,383 13,712 3,000 5,671 2,671 3,000 13,842,100 13,891,767 12,911,840 979,927 5,803,000 5,780,000 5,403,746 376,254 2,247,800 2,245,800 2,023,711 222,089 50,000 50,000 50,000 - 3,558,200 3,616,100 3,046,456 569,644 2,901,100 2,919,484 2,215,916 703,568 - 279,904 143,421 136,483 1,588,100 1,588,100 1,511,009 77,091 2,303,200 2,324,982 2,117,481 207,501 100,000 100,000 99,606 394 18,551,400 18,904,370 16,611,346 2,293,024 331,268,954 333,377,832 317,150,484 16,227,348 78,420,501 77,772,022 91,627,680 13,855,658 256,233 256,233 50,803 50,803 - - 43,485 43,485 19,834,099 19,834,099 14,713,951 (5,120,148) (101,190,700) (108,610,980) (94,015,592) 14,595,388 (81,356,601) (88,776,881) (78,951,120) 9,825,761 (2,936,100) (11,004,859) 12,676,560 23,681,419 76,979,600 83,477,570 83,477,570 $ 74,043,500 $ 72,472,711 $ 96,154,130 $ 23,681,419 Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Miscellaneous revenue related to indirect cost Change in inventory General government expenditures related to indirect cost Property Appraiser general government refunds to other governments not budgeted Public safety expenditures for multi -period projects not budgeted Public safety capital outlay funded by outside sources not budgeted Insurance proceeds related to Sheriff assets not budgeted Proceeds from sale of Sheriff assets not budgeted Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. $ 12,676,560 34,850 (8,356,150) 89,876 8,356,150 (731,498) (127,509) (642,652) 329,875 178,252 355,000 $ 12,162,754 26 COLLIER COUNTY, FLORIDA BAYSHORE GATEWAY COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2020 Revenues: Taxes Intergovernmental Charges for services Interest income Miscellaneous Total revenues Expenditures: Economic environment Personal services Operating Capital outlay Total expenditures Excess of revenues over expenditures Other financing sources (uses): Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 1,995,700 $ 1,995,700 $ 1,995,700 $ - 802,040 14,192 (787,848) - 527,960 10,890 (517,070) 40,000 40,000 62,804 22,804 - 6,732,959 414,835 (6,318,124) 2,035,700 10,098,659 2,498,421 (7,600,238) 499,900 499,900 379,251 120,649 484,100 2,107,016 861,414 1,245,602 151,500 3,257,700 1,170 3,256,530 1,135,500 5,864,616 1,241,835 4,622,781 900,200 4,234,043 1,256,586 (2,977,457) 5 5 2,207,700 5,211,416 2,715,800 (2,495,616) (2,671,600) (9,435,316) (3,748,700) 5,686,616 (463,900) (4,223,900) (1,032,895) 3,191,005 436,300 10,143 223,691 213,548 1,803,600 2,874,600 2,874,600 - $ 2, 339,900 $ 2,884,743 $ 3,098,291 $ 213,548 $ 223,691 27 COLLIER COUNTY, FLORIDA IMMOKALEE COMMUNITY REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2020 Revenues: Taxes Intergovernmental Charges for services Interest income Miscellaneous Total revenues Expenditures: Economic environment Personal services Operating Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Net change in fair value of investments Advances budgeted as transfers Net change in fund balance, GAAP basis The notes to the financial statements are an integral part of this statement. Original Final Budget Budget Actual Variance $ 756,600 $ 756,600 $ 756,600 $ - - 737 737 - 676,365 - (676,365) 12,000 12,000 18,933 6,933 - - 4,733 4,733 768,600 1,444,965 781,003 (663,962) 277,300 232,300 146,119 86,181 272,700 443,123 168,613 274,510 35,000 35,000 34,991 9 3,500 903,141 76,486 826,655 588,500 1,613,564 426,209 1,187,355 180,100 (168,599) 354,794 523,393 145,000 399,749 171,804 (227,945) (211,600) (371,670) (238,404) 133,266 (66,600) 28,079 (66,600) (94,679) 113,500 (140,520) 288,194 428,714 779,900 888,850 888,850 - $ 993,400 $ 748,330 $ 1,177,044 $ 428,714 $ 288,194 266 30,000 $ 318,460 28 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2020 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds ASSETS Current assets: Cash and investments $ 195,536,477 $ 38,099,506 $ 21,345,087 $ 4,143,880 $ 259,124,950 $ 79,875,823 Receivables: Trade, net 13,870,239 1,107,145 1,625,424 44,531 16,647,339 1,179,798 Special assessments 91,388 - - - 91,388 - Interest 270,038 155,538 22,825 5,028 453,429 107,884 Leases 13,435 - - 187,813 201,248 - Due from other funds 164,427 660,687 - 96,908 922,022 506,800 Due from other governments 1,406,600 255,703 105,713 4,896 1,772,912 36,246 Deposits 2,000 - - - 2,000 - Inventory 6,192,238 1,052,990 109,299 7,354,527 368,528 Prepaid costs 76,184 - - 76,184 1,307,364 Restricted assets: Cash and investments 8,240,437 123,713 448,002 206,345 9,018,497 - Interest receivable 20,645 - 392 - 21,037 Due from other governments - - 5,794,785 5,794,785 - Total current assets 225,884,108 40,402,292 24,600,433 10,593,485 301,480,318 83,382,443 Noncurrent assets: Restricted assets: Cash and investments 93,533,662 93,533,662 Receivables: Special assessments 112,683 112,683 Leases 800,392 582,246 1,382,638 Advances to other funds 7,104,345 - 7,104,345 - Capital assets: Land and nondepreciable capital assets 141,977,174 12,588,020 1,581,618 22,752,697 178,899,509 904,388 Depreciable capital assets, net 750,379,067 29,356,175 8,208,201 46,285,316 834,228,759 21,402,959 Total noncurrent assets 993,907,323 41,944,195 9,789,819 69,620,259 1,115,261,596 22,307,347 Total assets 1,219,791,431 82,346,487 34,390,252 80,213,744 1,416,741,914 105,689,790 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on debt refundings 2,971,148 - - - 2,971,148 - Deferred outflows of resources related to OPEB 163,742 14,504 83,075 7,198 268,519 33,676 Deferred outflows of resources related to pensions 8,629,761 791,019 10,840,280 362,978 20,624,038 1,975,285 Total deferred outflows of resources $ 11,764,651 $ 805,523 $ 10,923,355 $ 370,176 $ 23,863,705 $ 2,008,961 (Continued) 29 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2020 Business -type Activities Enterprise Funds Governmental Activities - County Emergency Internal Water Solid Waste Medical Other Service and Sewer Disposal Services Funds Total Funds LIABILITIES Current liabilities: Accounts payable $ 14,642,596 $ 4,137,619 $ 565,713 $ 374,152 $ 19,720,080 $ 2,245,430 Wages payable 1,507,465 154,585 972,943 62,709 2,697,702 331,906 Retainage payable 3,222,087 347,768 - 158,774 3,728,629 - Due to other funds 49,679 4,800 - 83,467 137,946 - Due to other governments 152 - 5,522 21,781 27,455 5,189 Unearned revenues 29,290 - 28,050 57,340 133,511 Self-insurance claims payable - - - - - 8,330,644 Compensated absences 1,943,622 173,388 745,454 83,956 2,946,420 469,531 Financed purchase obligation - - 78,693 - 78,693 - Total OPEB liability 100,625 10,443 48,177 4,984 164,229 20,647 Net pension liability 90,253 9,837 44,222 4,362 148,674 18,793 Landfill post -closure liability - 52,274 - - 52,274 - Notes payable 6,891,750 - - 6,891,750 - Lease payable 77,054 28,342 105,396 3,184 Bonds and loans payable 4,874,974 - 4,874,974 - Liabilities payable from restricted assets: Accounts payable 702,970 14,689 2,413,836 3,131,495 Wages payable - 10,432 128 10,560 Retainage payable 1,625,116 - 941,191 2,566,307 Due to other governments - 18,952 18,952 Refundable deposits 121,766 - - 9,876 131,642 Unearned revenue - 123,713 258,281 - 381,994 Interest payable 1,784,419 - - 1,784,419 Notes payable 2,367,097 2,367,097 Bonds and loans payable 1,624,989 - - 1,624,989 - Total current liabilities 41,655,904 5,014,427 2,772,468 4,206,218 53,649,017 11,558,835 Noncurrent liabilities: Arbitrage rebate liability 104,746 - - - 104,746 - Self-insurance claims payable - - - - 2,033,713 Advance from other funds 110,814 7,104,345 - 1,056,494 8,271,653 - Compensated absences 485,906 43,347 186,363 20,989 736,605 117,382 Lease payable 291,348 - 411,443 - 702,791 10,132 Total OPEB liability 1,619,010 168,009 775,139 80,186 2,642,344 332,202 Net pension liability 30,505,593 2,841,659 36,310,343 1,299,535 70,957,130 6,928,310 Landfill post closure liability - 1,603,757 - - 1,603,757 - Notes payable 50,360,000 - 50,360,000 Bonds and loans payable net 170,639,820 - 170,639,820 - Total noncurrent liabilities 254,117,237 11,761,117 37,683,288 2,457,204 306,018,846 9,421,739 Total liabilities 295,773,141 16,775,544 40,455,756 6,663,422 359,667,863 20,980,574 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 790,729 - - 757,454 1,548,183 - Deferred inflows of resources related to OPEB 73,700 6,493 38,080 3,233 121,506 15,723 Deferred inflows of resources related to pensions 884,747 89,569 736,992 40,277 1,751,585 192,414 Total deferred inflows of resources 1,749,176 96,062 775,072 800,964 3,421,274 208,137 NET POSITION Net investment in capital assets 702,330,331 39,942,799 9,271,341 66,548,025 818,092,496 21,305,558 Restricted for grants and other purposes - - 195,389 3,211,521 3,406,910 - Restricted for growth related capital expansion 23,707,681 - - 23,707,681 Restricted for renewal and replacement 300,000 300,000 Restricted for debt service 14,621,281 - - 14,621,281 - Unrestricted 193,074,472 26,337,605 (5,383,951) 3,359,988 217,388,114 65,204,482 Total net position $ 934,033,765 $ 66,280,404 $ 4,082,779 $ 73,119,534 $ 1,077,516,482 $ 86,510,040 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds (1,765,404) Net position of Business -type Activities $ 1,075,751,078 The notes to the financial statements are an integral part of this statement. 30 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2020 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating revenues: Charges for services $ 162,196,690 $ 53,689,255 $ 12,928,937 $ 5,806,900 $ 234,621,782 $ 110,314,307 Miscellaneous 505,130 196,352 139,762 198,751 1,039,995 99,459 Total operating revenues 162,701,820 53,885,607 13,068,699 6,005,651 235,661,777 110,413,766 Operating expenses: Personal services 40,034,503 3,854,864 27,268,934 1,834,520 72,992,821 9,017,521 General and administrative 60,831,911 43,247,364 4,642,411 14,460,986 123,182,672 22,949,735 Claims paid - - - - - 67,248,317 Depreciation and amortization 48,113,763 1,913,955 1,893,202 3,634,928 55,555,848 3,818,364 Total operating expenses 148,980,177 49,016,183 33,804,547 19,930,434 251,731,341 103,033,937 Operating income (loss) 13,721,643 4,869,424 (20,735,848) (13,924,783) (16,069,564) 7,379,829 Non -operating revenues (expenses): Operating grants and contributions 1,948,493 4,024,082 1,416,480 4,158,920 11,547,975 8 Interest income 4,794,829 642,985 335,880 96,708 5,870,402 1,157,887 Insurance reimbursement 726,192 9,326 17,993 96,969 850,480 2,631,730 Interest expense (7,006,893) (95,594) (8,668) (12,265) (7,123,420) (206) Rebatable arbitrage 20,697 - 20,697 - Gain (loss) on disposal of capital assets (125,865) (182,164) (86,674) 12,301 (382,402) 516,900 Total non -operating revenues 357,453 4,398,635 1,675,011 4,352,633 10,783,732 4,306,319 Income (loss) before contributions and transfers 14,079,096 9,268,059 (19,060,837) (9,572,150) (5,285,832) 11,686,148 Capital grants and contributions 32,960,705 - 12,765 9,240,702 42,214,172 7,024 Transfers in 21,086 914,703 18,018,600 6,488,120 25,442,509 1,794,800 Transfers out (9,615,643) (943,298) (7,500) (15,000) (10,581,441) (376,600) Total transfers and contributions 23,366,148 (28,595) 18,023,865 15,713,822 57,075,240 1,425,224 Change in net position 37,445,244 9,239,464 (1,036,972) 6,141,672 51,789,408 13,111,372 Net position - beginning 896,588,521 57,040,940 5,119,751 66,977,862 73,398,668 Net position - ending $ 934,033, 665 $ 66,280,404 $ 4,082,779 $ 73,119,534 $ 86,510,040 Consolidation adjustment for internal service fund activities related to enterprise funds $ 1,021,049 Change in net position of Business -type Activities $ 52,810,457 The notes to the financial statements are an integral part of this statement 31 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2020 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Cash flows from operating activities: Cash received for services $ 162,620,518 $ 54,609,557 $ 13,132,992 $ 5,988,005 $ 236,351,072 $ - Cash received from other funds for services - - - - - 101,257,448 Cash received from employees for services 7,418,907 Cash received from other governments for services 371,533 Cash received from refundable deposits 80,000 898,657 978,657 - Cash received from retirees for services - - - 1,905,835 Cash payments on behalf of retirees - (1,212,181) Cash payments for goods and services (45,045,560) (41,806,515) (1,351,161) (11,334,290) (99,537,526) (21,973,891) Cash payments for self insurance claims - (68,381,233) Cash payments to employees (35,644,004) (3,495,019) (23,482,086) (1,569,946) (64,191,055) (8,269,614) Cash payments for interfund services (12,287,639) (1,740,157) (3,347,264) (3,336,455) (20,711,515) (1,385,650) Cash payments on refundable deposits (74,000) (880,679) (954,679) - Net cash provided by (used for) operating activities 69,649,315 7,585,844 (15,047,519) (10,252,686) 51,934,954 9,731,154 Cash flows from non -capital financing activities: Cash received from operating grants 1,535,181 3,764,970 1,761,845 3,695,060 10,757,056 - Cash transfers from other funds 405,769 6,931,294 18,018,600 6,919,162 32,274,825 1,794,800 Cash transfers to other funds (9,682,143) (7,657,698) (7,500) (15,170) (17,362,511) (424,200) Net cash provided by (used for) non -capital financing activities (7,741,193) 3,038,566 19,772,945 10,599,052 25,669,370 1,370,600 Cash flows from capital and related financing activities: System development charges 16,329,233 - - - 16,329,233 - Special assessment collections 60,770 - - - 60,770 - Receipts from insurance reimbursements 968,097 9,326 17,993 75,018 1,070,434 2,359,757 Proceeds from bond issued - - - - - - Proceeds from disposal of capital assets 274,323 11,085 23,050 15,161 323,619 550,991 Proceeds from capital grants 375,000 - - 7,887,974 8,262,974 - Proceeds from leasing activities 13,083 183,428 196,511 Payments for capital acquisitions (65,751,095) (3,579,640) (2,051,210) (8,043,315) (79,425,260) (5,115,120) Principal payments on notes (9,027,000) (9,027,000) Principal payments on direct pay loans (2,285,000) (2,285,000) Principal payments on bonds (4,099,464) (4,099,464) Principal payments on leases (73,994) (122,214) (196,208) (2,876) Interest and fiscal agent fees paid (7,429,130) (8,668) (12,265) (7,450,063) (206) Net cash provided by (used for) capital and related financing activities (70,645,177) (3,559,229) (2,141,049) 106,001 (76,239,454) (2,207,454) Cash flows from investing activities: Interest on investments 5,336,378 712,464 377,586 104,517 6,530,945 1,270,657 Net cash provided by investing activities 5,336,378 712,464 377,586 104,517 6,530,945 1,270,657 Net increase (decrease) in cash and investments (3,400,677) 7,777,645 2,961,963 556,884 7,895,815 10,164,957 Cash and investments, October 1, 2019 300,711,253 30,445,574 18,831,126 3,793,341 353,781,294 69,710,866 Cash and investments, September 30, 2020 $ 297,310,576 $ 38, 223,219 $ 21, 993,089 $ 4, 550,225 $ 361, 777,109 $ 79, 775,823 Current cash and investments $ 195,536,477 $ 38,099,506 $ 21,345,087 $ 4,143,880 $ 259,124,950 $ 79,875,823 Current cash and investments -restricted 8,240,437 123,713 448,002 206,345 9,018,497 - Noncurrent cash and investments -restricted 93,533,662 - - - 93,533,662 - Cash and investments, September 30, 2020 $ 297,310,576 $ 38,223,219 $ 21,793,089 $ 4,350,225 $ 361,677,109 $ 79,875,823 (Continued) 32 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2020 Business -type Activities Enterprise Funds Governmental Emergency Activities - County Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds Operating income (loss) $ 13,721,643 $ 4,869,424 $ (20,735,848) $ (13,924,783) $ (16,069,564) $ 7,379,829 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense Net changes in assets and liabilities: Trade receivable Due from other funds Due from other governments Inventory Prepaid costs Accounts payable Retainage payable Wages payable Due to other funds Due to other governments Compensated absences Refundable deposits Unearned revenue Self-insurance claims payable Total OPEB liability Deferred outflows of resources related to OPEB Deferred inflows of resources related to OPEB Net pension liability Deferred outflows of resources related to pensions Deferred inflows of resources related to pensions Deferred inflows of resources related to leases Landfill post closure liability Total adjustments Net cash provided by (used for) operating activities Non -cash investing, capital and financing activities: Change in fair value of investments Arbitrage rebate 48,113,763 1,913,955 1,893,202 3,634,928 55,555,848 3,818,364 72,673 751,760 (56,529) (9,425) 758,479 (119,576) - 42,045 (20,183) 21,862 509,716 (50,656) - (4,770) 67 (55,359) 18,161 (467,321) (117,093) 16,196 (568,218) 19,026 (68,804) - - (68,804) (1,227,350) 4,175,109 (291,449) 186,372 (43,697) 4,026,335 65,387 (104,455) - - - (104,455) - 316,398 43,785 162,611 15,108 537,902 31,963 (95,443) (3,059) (7,340) 33,958 (71,884) (3,164) (7,512) (151) 4,076 698 (2,889) (3,181) 235,375 409 84,128 18,062 337,974 1,405 6,000 - - - 6,000 - - 17,978 (8,986) 8,992 (28,334) - - - - - (1,445,631) 140,644 42,463 14,933 17,176 215,216 27,986 (27,012) (2,361) (10,896) (1,127) (41,396) (4,670) (22,758) (2,803) (12,933) (1,338) (39,832) (5,543) 5,380,766 365,844 5,109,648 305,255 11,161,513 1,021,343 (751,830) (4,249) (213,022) (58,030) (1,027,131) (104,415) (881,084) (83,243) (1,344,058) (30,532) (2,338,917) (220,162) (36,181) (196,033) (232,214) - (74,504) - - (74,504) - 55,927,672 2,716,420 5,688,329 3,672,097 68,004,518 2,351,325 $ 69,649,315 $ 7,585,844 $ (15,047,519) $ (10,252,686) $ 51,934,954 $ 9,731,154 $ (15,264) $ 10,976 $ 4,226 $ 1,138 $ 1,076 $ 19,786 104,746 - - - 104,746 - Developer infrastructure contributions 16,608,773 - 16,608,773 Contributed capital assets 108,193 727,481 835,674 Change in capital related grant receivable (375,000) 625,247 250,247 Change in special assessment receivable (50,431) - - (50,431) - Capital related accounts payable 6,716,096 1,653,628 1,390,023 9,759,747 988,474 Capital related retainage 4,681,908 347,768 1,099,965 6,129,641 - The notes to the financial statements are an integral part of this statement. 33 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS September 30, 2020 ASSETS Cash and investments Receivables: Interest Other Total assets LIABILITIES Due to other governments Due to individuals Refundable deposits Due to special assessment holders Total liabilities Agency Funds $ 35,431,036 6,934 30,174 $ 35,468,144 $ 8,384,056 719,150 25,351,672 1,013,266 $ 35,468,144 The notes to the financial statements are an integral part of this statement. 34 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Collier County, Florida (County) have been prepared in accordance with accounting principles generally accepted in the United States of America for governmental entities (GAAP). The more significant of the County's accounting policies are described below. THE REPORTING ENTITY Entity status for financial reporting purposes is governed by Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended. The GASB is the standard setting body for the establishment of GAAP in governmental entities. Determination of the financial reporting entity of the County is founded upon the objective of accountability. These financial statements include the County government (the primary government) and two types of legally separate component units (blended and discrete). Component units are legally separate agencies that the primary government is financially accountable for or organizations which should be included in the reporting entity because of the nature and significance of their relationship with the primary government. Financial accountability is determined by the primary government's ability to appoint the voting majority of the entity's board and impose its will on the organization or there is a potential specific financial benefit/burden relationship. Financial accountability also exists if an organization is fiscally dependent and there is potential specific financial benefit/burden relationship. The primary government consists of Collier County, a political subdivision of the State of Florida that was established in 1923 by the Florida State Legislature. The County is governed by a Board of County Commissioners which consists of five members elected within single member districts. In addition, there are five separately elected Constitutional Officers: the Tax Collector, Property Appraiser, Sheriff, Clerk of the Circuit Court and Comptroller and Supervisor of Elections. The Constitutional Officers are elected county wide. Under the direction of the Clerk of the Circuit Court and Comptroller, the Finance and Accounting Department maintains the accounting system for the operations of the Board of County Commissioners, Supervisor of Elections and the Clerk of the Circuit Court and Comptroller. The Tax Collector, Property Appraiser and Sheriff each maintain their own accounting systems. For financial reporting purposes, the operations of the Board of County Commissioners and the Constitutional Officers are combined and presented as the primary government. The County's blended component units consist of organizations whose respective governing Boards are composed entirely of the Board of County Commissioners serving ex-officio. These entities are legally separate, however the County has the financial and operational responsibility for these component units. In accordance with GASB Statement No. 14, as amended, these organizations are reported as if they were part of the County's operations. Collier County Water and Sewer District (District) - The District was established by Chapter 88-499, Laws of Florida, as amended by Chapter 03-353, to provide water, sewer and effluent services to portions of the unincorporated area of Collier County. Collier County Community Redevelopment Agency (CRA)_ The CRA was established by Resolution 2000-82 to benefit blighted areas in both the Immokalee Redevelopment and Bayshore/Gateway Triangle Redevelopment Areas. These two redevelopment areas are geographically separate and distinct. Collier County Airport Authority - The Board of County Commissioners was established as the governing body of the Airport Authority by Ordinance 2010-10. The Airport Authority is responsible for construction, improvement, equipment, development, regulation, operation and maintenance of the Marco Island, Immokalee and Everglades Airports and all related airport facilities. Collier County Metropolitan Planning Organization (MPO) - The Authority was created in 1981 by Collier County Resolution 81- 222 pursuant to Section 334.215, Florida Statutes, as amended by Section 339.175, Florida Statutes. The purpose of the MPO is to provide planning for all modes of travel in order to benefit the citizens of Collier County. The MPO is reported as part of the Grants and Shared Revenues fund. The County's discretely presented component units consist of organizations whose board members are appointed by the Board of County Commissioners. The County is able to impose its will on these entities because of its ability to remove appointed members from the component units' Boards. The Authorities maintain their own financial records, but do not issue separate financial statements. GASB Statement No. 14, as amended, requires that the financial data of the following organizations be reported in separate columns to emphasize that they are legally separate from the County. Collier County Housing Finance Authority - The Authority was formed in 1980 by Collier County Ordinance 80-66 for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Health Facilities Authority -The Authority was established in 1979 by Collier County Ordinance 79-95 for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". 35 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Collier County Industrial Development Authority -The Authority was created in 1978 by Collier County Resolution 78-94, rescinded and replaced by Resolution 79-34, to facilitate the financing of projects that promote economic growth and increase opportunities for employment in the County. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Collier County Educational Facilities Authority - The Authority was created in 1999 by Collier County Resolution 99-17 to assist institutions for higher education in the construction, financing and refinancing of projects. Their financial position and results of operations are reported in the accompanying financial statements and the outstanding conduit debt issued by the Authority is disclosed in Note 8, "Conduit Debt Obligations". Financial information on the individual component units can be obtained from their respective administrative offices or from the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller. Administrative Offices Collier Water and Sewer District Collier County Airport Authority 3339 East Tamiami Trail, Suite #302 2005 Mainsail Drive, Suite #1 Naples, Florida 34112 Naples, Florida 34114 Collier County Metropolitan Planning Organization Immokalee Community Redevelopment Agency 2885 South Horseshoe Drive 750 South 5th Street Naples, Florida 34104 Immokalee, Florida 34142 Bayshore Gateway Community Redevelopment Agency Collier County Health Facilities Authority 3299 Tamiami Trail East, Bldg. F Suite #103 Collier County Housing Finance Authority Naples, Florida 34112 Collier County Industrial Development Authority Collier County Educational Facilities Authority 5150 Tamiami Trail North, #502 Naples, Florida 34103 GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS The basic financial statements are made up of the government -wide financial statements and fund financial statements. Both of these sets of financial statements distinguish between the governmental and business -type activities of Collier County. The government -wide financial statements consist of a Statement of Net Position and a Statement of Activities. These statements report on the financial condition of Collier County, at the reporting entity level. Internal balances represent net amounts due between the governmental and business -type activities. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements with the exception of interfund services provided and used. The internal service activity has also been eliminated from the government -wide financial statements. Aggregate internal service fund activity is reported in full as a single column in the proprietary fund financial statements. Fiduciary funds are not included in these presentations as their assets do not represent amounts that are available for Collier County government operations. The Statement of Net Position reports all financial and capital resources of Collier County's governmental and business -type activities. Net position equals assets plus deferred outflows of resources minus liabilities plus deferred inflows of resources, and is shown in three categories: net investment in capital assets; restricted net position and unrestricted net position. The Statement of Activities reports results of operations on a functional activity (program) basis and demonstrates to what degree the particular program has been self-supporting. Direct expenses are those that are specifically associated with a service, program or department and, thus are clearly identifiable to a particular function. The effect of indirect expense allocations has been eliminated in the government -wide financial statements. Depreciation expense for capital assets that can specifically be identified with a function is recorded as a direct expense of that function. Depreciation for capital assets that serve all functions is recorded as a direct expense of the general government function on the government -wide Statement of Activities. All interest on general long term debt is considered indirect and is reported separately in the government -wide Statement of Activities. Program revenues are reported in the following three categories: charges for services, operating grants and contributions and capital grants and contributions. Charges for services are amounts charged to customers for a particular service, and are netted against the cost of the relevant program. Internal charges for indirect services are allocated across functions as direct expenses. Grants and contributions refer to revenues restricted for capital or operational use in a particular program. The general revenue category encompasses all other revenue types and represents revenue collected to support all functions of Collier County government. The fund financial statements follow the government -wide statements and report more detailed information about operations of major funds on an individual basis and nonmajor funds on an aggregate basis for the governmental and proprietary funds. Following the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances are reconciliations explaining the differences between the governmental fund presentation and the government -wide presentation. 36 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BASIS OF PRESENTATION The following are reported as major governmental funds: General Fund — the General Fund is the general operating fund of the County. All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the General Fund. The general operating funds of the Clerk of the Circuit Court and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are presented together with the Board of County Commissioners' general operating fund in the County's consolidated General Fund. Bayshore/Gateway and Immokalee Community Redevelopment Area Special Revenue Funds — the Redevelopment funds are used to account forthe receipt and expenditure of tax increment revenues generated by the Bays hore/G ateway and Immokalee Community Redevelopment Areas. Infrastructure Sales Tax Capital Project Fund — the Infrastructure Sales Tax fund is used to account for the receipt and expenditure of an additional one -cent sales surtax approved by the voters. The following are reported as major enterprise funds: County Water and Sewer Fund — the County Water and Sewer fund is used to account for the provision of water, wastewater and effluent services to certain portions of the County's unincorporated area. Solid Waste Disposal Fund — the Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the County. Emergency Medical Services Fund — the Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County. Collier County also maintains the following nonmajor fund types: Special Revenue Funds — Special revenue funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Permanent Fund — Permanent funds are used to account for resources that were legally restricted to the extent that only earnings and not principal may be spent. Collier County operates a permanent fund to defray costs associated with the maintenance and management of conservation land. Debt Service Funds — Debt service funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for principal and interest related to long-term obligations. Capital Project Funds — Capital project funds are used to account for the accumulation of resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of capital facilities and other capital assets. Enterprise Funds — Enterprise funds are used to account for activities for which a fee is charged to external users for goods or services. Internal Service Funds — Internal service funds are used to account for the provision of goods and services by one department to other departments within the County or to other governmental units on a cost reimbursement basis. Collier County currently reports the following Internal Service Funds: Self -Insurance, Sheriff's Self -Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. Agency Funds — Agency funds are custodial in nature and do not report the results of operations (assets equal liabilities). Agency funds are clearing accounts for assets held by the government as an agent for individuals, private organizations or other governments. The Board of County Commissioners, Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain agency funds. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. The basis of accounting relates to the timing of the measurements made regardless of the measurement focus applied. The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the Statement of Net Position and the operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and measurable, and expenses are recognized in the period incurred. Grant and similar revenues are recognized when eligibility requirements are met. Proprietary funds distinguish operating revenues and expenses from non -operating items. 37 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available to finance expenditures of the fiscal period. Generally, revenues are considered available when they are collected within the current period or within 60 days after the end of the fiscal year. Grant revenues are an exception and are considered available when eligibility requirements are met. Primary revenues which have been treated as susceptible to accrual include, where material, charges for services, interest earnings and certain taxes and intergovernmental revenues. Property taxes are discussed later in Note 1. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include accrued compensated absences, pension, other postemployment benefits and principal and interest on long-term debt. When both restricted and unrestricted resources are available, restricted resources will be used first for incurred expenses, and then unrestricted as needed. When using the unrestricted resources, committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. BUDGETS AND BUDGETARY DATA The following are the statutory procedures followed by the Board of County Commissioners in establishing the budgets for the County: 1. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer prepares and presents to the Board a tentative budget for the ensuing fiscal year. The budget includes all estimated receipts and all estimated expenditures, reserves and balances to be carried forward at the end of the year as specified in Section 129.03, Florida Statutes. 2. Within eighty days of the certification of value, but not earlierthan sixty-five days after certification, the Board holds a public hearing on the tentative budget and proposed millage rate. At this hearing the Board amends and adopts the tentative budget, recomputes the proposed millage rate, and announces publicly the percentage, if any, by which the recomputed proposed millage rate exceeds the rolled -back rate. If the millage rate tentatively adopted exceeds that proposed, each taxpayer within the jurisdiction is notified of the increase by first class mail, at the expense of the Board. 3. Within fifteen days of the meeting adopting the tentative budget, the Board advertises the County's intent to adopt a final budget and millage rate. 4. A public hearing is held by the Board to finalize the budget and adopt a millage rate. This hearing is held not less than two days and not more than five days after the day that the advertisement is first published. Prior to September 30, the millage levy is adopted by a separate vote. The millage rate adopted is not allowed to exceed the tentatively adopted millage rate, except as allowed for by emergency provision with strict public notice requirements. This is followed by the approval and ratification of the final budget. 5. The resolution approved at the final hearing is forwarded to the Property Appraiser, Tax Collector and Florida Department of Revenue, not later than thirty days following the adoption of the Resolution, the Board certifies to the State of Florida, Department of Revenue, Division of Ad Valorem Tax, that it has complied with the provisions of Chapter 200, Florida Statutes. 6. The County Manager approves interdepartmental budget changes within the same fund and division of $50,000 or less that do not impact reserves or recognize revenue. All other budgetary changes must be approved by the Board of County Commissioners as matter of policy. The initial adopted budget was amended in accordance with Florida Statutes. 7. Florida State Section 129.07, as amended in 1978, provides that expenditures in excess of total fund budgets are unlawful. However, because the Board approves all budgetary changes between departments, except those approved by the County Manager, the departmental budget becomes the level of control. Formal budgetary integration is employed as a management control device during the fiscal year for all funds. Budgets have been legally adopted by the Board for all Board departments except for the agency funds, the Impact Fees Escrow special revenue fund and the Other Debt Service fund. The Property Appraiser and the Tax Collector adopt budgets for their general funds independently of the Board. The Clerk of Courts operates as a fee officer, and as such, prepares its budget in accordance with Section 218.35, Florida Statutes. 38 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Sheriff and Supervisor of Elections prepare budgets for their general funds, which are submitted to and approved by the Board. The Clerk of Court's budget for court related functions is prepared according to Section 28.36 Florida Statutes and submitted to the Clerks of Court Operations Corporation for approval by the Legislative Budget Commission. Budgets are adopted for all governmental departments except as described in the previous paragraph. These budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) except for certain non -budgeted revenues and expenditures and mark to market activity on investments. All unencumbered appropriations lapse at the end of the current year. For further information regarding encumbrances, refer to Note 17 on page 77. Capital project costs are budgeted in the year they are anticipated to be obligated. In subsequent years, the unused budget is reappropriated until the project is completed. Proprietary funds are budgeted on a basis consistent with generally accepted accounting principles, except that capital related and debt transactions are based upon cash receipts and disbursements. Estimated beginning fund balances are considered in the budgetary process. For purposes of the budgetary presentation, certain transactions that have been accounted for in the governmental funds statements of revenues, expenditures and changes in fund balances have not been reflected in the budgetary financial statements. Specifically, bad debt expense and the net change in fair value of investments are not presented in the budget to actual statements. CASH AND INVESTMENTS Florida Statutes Section 218.415 establishes guidelines for Florida local government investment policies. The County's current investment policy, as amended, was adopted December 9, 2014 by Resolution 2014-260 and is consistent with the requirements of that statute. This investment policy authorized the following investments: 1. U.S. Treasury and Government Guaranteed — U.S. Treasury obligations and obligations the principal and interest of which are backed or guaranteed by the full faith and credit of the U.S. Government; 2. Federal Agency/Government Sponsored Enterprise — Debt obligations, participations or other instruments issued or fully guaranteed by any U.S. Federal agency, instrumentality or government sponsored enterprise; 3. Corporates — U.S. dollar denominated corporate notes, bonds or other debt obligations issued or guaranteed by a domestic corporation, financial institution, non-profit or other entity; 4. Municipals — Obligations, including both taxable and tax-exempt, issued or guaranteed by any State, territory or possession of the United States, political subdivision, public corporation, authority, agency board, instrumentality or other unit of local government of any State or territory; 5. Agency Mortgage Backed Securities — Mortgage backed securities, backed by residential, multi -family or commercial mortgages, that are issued or fully guaranteed as to principal and interest by a U.S. Federal agency or government sponsored enterprise, including but not limited to pass-throughs, collateralized mortgage obligations and real estate mortgage investment conduits; 6. Non -Negotiable Certificates of Deposit - Non-negotiable interest bearing time certificates of deposit or savings accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 7. Depository Bank Account — Negotiated Order of Withdrawal accounts in banks organized under the laws of this state or in national banks organized under the laws of the United States and doing business in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; 8. Commercial Paper — U.S. dollar denominated commercial paper issued or guaranteed by a domestic corporation, company, financial institution, trust or other entity, including both unsecured debt and asset backed programs; 9. Repurchase Agreements — Repurchase agreements must be governed by written agreement, counterparty must be a Federal Reserve Bank, a Primary Dealer or a nationally chartered commercial bank. Acceptable underlying securities must be direct obligations of, or that are fully guaranteed by, the United States or any agency of the United States, or U.S. Agency backed mortgage related securities with an aggregate current market value of at least 102% (or 100% if the counterparty is a Federal Reserve Bank) of the purchase price plus current accrued price differential; 10. Money Market Funds — Shares in open end and no load money market mutual funds, provided such funds are registered under the Investment Company Act of 1940 and operate in accordance with Security and Exchange Commission Rule 2a-7; 11. Fixed -Income Mutual Funds — Shares in open end and no load fixed income mutual funds whose underlying investments would be permitted for purchase under the investment policy and all its restriction; 12. Local Government Investment Pools — State, local government or privately sponsored investment pools that are authorized pursuant to state law; 13. The Florida Local Government Surplus Funds Trust Funds (Florida Prime). 39 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The County maintains a cash and investment pool that is available for use by all funds. Investment income is allocated to individual funds based upon their average daily balance in the cash and investment pool. Each fund's individual equity in the County's cash and investment pool is considered to be a cash equivalent as the funds can deposit or withdraw cash at any time without notice or penalty. The statement of cash flows for the proprietary funds also uses this methodology. Investments in debt securities are recorded at fair value based upon values obtained from an independent pricing service. Investments in the Local Government Surplus Funds Trust Fund (Florida Prime) are stated at fair value. The County categorizes its fair value measurements within the fair value hierarchy established in GASB Statement No. 72, "Fair Value Measurements and Application'. Florida PRIME is considered a qualifying external investment pool that meets all of the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the County's position in the pool is the same as the value of the pool shares. The Florida PRIME investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2020, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 36.5% of Florida PRIME's portfolio at September 30, 2020. In accordance with GASB Statement No. 79, "Certain External Investment Pools and Pool Participants", as a participant in a qualifying external investment pool, the County should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates) in notes to the financial statements. With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days" With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. As of September 30, 2020, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. RECEIVABLES All trade receivables are reported net of an allowance for uncollectibles, which is generally a year except for Emergency Medical Services receivable which uses an estimated uncollectible percentage. INVENTORIES AND PREPAID COSTS Inventory is valued at cost using the first -in, first -out method. Inventory in the governmental funds consists of supplies held for consumption. The cost is recorded as an expenditure at the time inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Inventories and prepaid costs reported within governmental funds are classified as non -spendable, which indicates that they do not constitute available resources. Inventories and prepaid costs in the government -wide and proprietary fund financial statements are reported as an expense when consumed. Inventory held for resale consists of real estate holdings, acquired through various programs, which the County intends to sell. The value of these properties includes the original purchase price plus the cost of any rehabilitation. Inventory held for resale of $9,796,693 is classified as restricted, which indicates that they do not constitute available resources. CAPITAL ASSETS Capital assets, which include property, plant, equipment and infrastructure (e.g., roads and bridges, water and wastewater systems, drainage systems and similar items), are reported in the proprietary fund financial statements and in the governmental or business -type activities columns in the government -wide financial statements. Capital assets are reported at cost where historical records are available and at estimated fair value in the absence of historical cost records. Capital contributions are recorded at acquisition value on the date donated. 40 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The County capitalizes expenditures with a cost of $1,000 or more and with a useful life in excess of one year. Betterments and major improvements which significantly increase value, change capacity or extend useful lives are also capitalized. Expenditures for maintenance and repairs are charged to operating expenses. The cost of capital assets retired or sold, together with the related accumulated depreciation, is removed from the respective accounts and any gain or loss on disposition is credited or charged to earnings in the government -wide financial statements and proprietary fund financial statements. Depreciation is calculated using the straight-line method. The estimated useful life of the various classes of depreciable capital assets is as follows: Capital Asset Class Estimated Useful Life Buildings 20-45 years Infrastructure 3-30 years Improvements other than buildings 4-45 years Machinery and equipment 3-20 years FINANCED PURCHASE OBLIGATIONS In the government -wide financial statements and proprietary fund financial statements, financed purchase obligations and the related cost of assets acquired are reflected in the Statement of Net Position. For financed purchase obligations originating in governmental funds, an expenditure for the asset and an offsetting other financial source are reflected in the fund financial statements in the year of inception. LEASES The County is a lessee for noncancellable leases of land, building, office space and equipment. The County recognizes a lease liability and an intangible right -to -use lease asset (lease asset) in the government -wide and proprietary fund financial statements. At the commencement of a lease, the County initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the term of the lease. Key estimates and judgments related to leases include how the County determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The County uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are comprised of fixed payments and any purchase option price that the County is reasonably certain to exercise. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options are only included in the lease term if the lease is reasonably certain to be extended. The County monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Leased assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Payments due under the lease contracts include fixed payments plus, for many of the County's leases, variable payments. For office space leases that include variable payments, those payments include the County's proportionate share of property taxes, insurance, and common area maintenance. For office equipment leases for which the County has elected not to separate lease and non -lease components, maintenance services are provided by the lessor at a fixed cost and are included in the fixed lease payments. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: • Fixed payments (including in -substance fixed payments), less any lease incentives receivable. • Amounts expected to be payable by the County under residual value guarantees. • The exercise price of a purchase option if it is reasonably certain the option will be executed. • Payments of penalties for terminating the lease, if the lease term reflects the County exercising that option. 41 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. Extension and termination options are included in a number of property and equipment leases across the County. These are used to maximize operational flexibility in terms of managing the assets used in the County's operations. The majority of extension and termination options held are exercisable only by the County and not by the respective lessor. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the group, the lessee's incremental borrowing rate is used. The incremental borrowing rate is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right -of -use asset in a similar economic environment with similar terms, security and conditions. Variable payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate) are initially measured using the index or rate as of the commencement of the lease term. The County is a lessor for noncancellable leases of land, building, office space and equipment. The County recognizes a lease receivable and a deferred inflow of resources in the government -wide, proprietary fund and governmental fund financial statements. At the commencement of a lease, the County initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the term of the lease. Key estimates and judgments include how the County determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts. The County uses its estimated incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is comprised of fixed payments from the lessee. The County monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The deferred outflows of resources reported in the County's statement of net position represent changes in actuarial assumptions, the net difference between projected and actual earnings on investments, changes in the proportion and differences between the County's contributions and proportionate share of contributions and the County's contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. In addition, deferred outflows related to the difference between expected and actual economic experience relating to the Florida Retirement System Pension and the Other Post Employment Benefits Plan were reported. These amounts will be recognized as increases in pension expense and OPEB expense in future years. The County also reports the deferred charge on refunding as a deferred outflow in the proprietary and government wide statements of net position. A deferred charge results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows of resources reported in the County's statement of net position represent the difference between expected and actual economic experience, changes in actuarial assumptions, net difference between projected and actual earnings on investments, and changes in the proportion and differences between the County's contributions and proportionate share of contributions relating to the Florida Retirement System Pension Plan, the Retiree Health Insurance Subsidy Program and the Other Post Employment Benefits Plan. These amounts will be recognized as reductions in pension expense and OPEB expense in future years. The County has also recorded amounts associated with long term receivables, primarily related to deferred impact fee agreements and leases, as deferred inflows. 42 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BOND PREMIUMS, LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums and bond insurance costs for the governmental activities and the business -type activities are deferred and amortized over the term of the bonds using the straight-line method which approximates the effective interest method. Bond premiums are presented as an increase to the face amount of bonds payable, while bond insurance costs are recorded as deferred charges and shown on the face of the Statement of Net Position as a component of noncurrent assets. Pursuant to GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the gain or loss on defeasance of debt is reported as a deferred inflow or outflow of resources. The gain or loss is calculated as the difference between the reacquisition price of the refunded debt and the net carrying amount at the time of the refunding. The gain or loss is amortized on a straight line basis over the shorter of the life of the new debt or the remaining life of the old debt as a component of interest expense. In the governmental fund financials, bond premiums and issuance costs, including bond insurance costs, are recognized in the current period. The face amount of debt is reported as other financing sources. Premiums received on debt issuances are also reported as other financing sources. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. PROPERTY TAXES Property taxes become due and payable on November 1st of each year and become delinquent on April 1st of the following year. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements, as delinquent taxes as of September 30, 2020 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1 st delinquent date as follows: November - 4%, December - 3%, January - 2%, and February -1 %. Tax certificates for the full amount of any unpaid taxes must be sold no later than June 1 st of each year. No accrual for the property tax levy becoming due in November 2020 is included in the accompanying financial statements, since such taxes are collected to finance expenditures of the subsequent period. Key dates in the property tax cycle for the fiscal year ended September 30, 2020 are as follows: Property Tax Cycle Assessment roll compiled Assessment roll certified Millage resolution approved Beginning of fiscal year for tax levy Taxes due and payable (levy date) Collection dates Due date Delinquent (lien date) Tax certificates sold ACCOUNTING ESTIMATES Date January 1, 2019 July 1, 2019 Within 35 days of the certification of the assessment roll October 1, 2019 November 1, 2019 By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 29: 1 % discount March 31, 2020 April 1, 2020 Prior to June 1, 2020 The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimated. UNEARNED REVENUE In instances where assets have been received by the County for services to be rendered in future periods, asset balances are offset by an unearned revenue liability account in the financial statements. Unearned revenues of the County as of September 30, 2020 are gift certificates issued and prepayments on accounts. ACCRUED COMPENSATED ABSENCES The County follows the provisions of GASB Statement No. 16, Accounting for Compensated Absences. This statement provides for the measurement of accrued vacation leave and other compensated absences using the pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary related payments associated with the payment of compensated absences. 43 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) It is the Board of County Commissioners' policy to allow employees of record on August 2, 1996 a sick leave payment upon termination for any service period earned prior to August 2, 1996 and a payout of unused vacation up to 440 hours for all employees. The Sheriff's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 2,000 hours, and up to 500 hours of unused vacation time. As of March 16, 2020, the Sheriff authorized unused vacation balances to be temporarily raised to 600 hours, effective through December 31, 2020. This change was made as a result of the COVID-19 pandemic. Both the Clerk of the Circuit Court and Comptroller's and Tax Collector's policies allow for a percentage of unused sick leave payout based upon years of service, and up to 240 hours of unused vacation hours. The Property Appraiser's policy allows for a percentage of unused sick leave payout based upon years of service, not to exceed 1,040 hours, and up to 200 hours of unused vacation hours. The Supervisor of Election's policy allows for a percentage of unused sick leave payout based upon years of service, and up to 440 hours of unused vacation. Payments for compensated absences are made by the respective fund. Accrued compensated absences are recorded as liabilities in the government -wide financial statements and the proprietary fund financials. A liability is reported in governmental funds only if they have matured, for example, as a result of employee resignations or retirements, and are considered due and payable as of year end. PENSIONS In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) and additions to/deductions from FRS's and HIS's fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. OTHER POST EMPLOYMENT BENEFITS (OPEB) In the government -wide and proprietary funds statements of net position, liabilities are recognized for the County's total OPEB liability as determined by an actuarial review of the healthcare coverage purchased by retirees to continue participation in the County's self -insured health plan. The County is responsible for covering the excess of retiree claims over premium payments made by retirees to the County, which creates an other post employment benefit. OPEB expense is recognized immediately for changes in the OPEB liability resulting from current year service cost, interest on the total OPEB liability and changes of benefit terms or actuarial assumptions. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS For the year ended September 30, 2020, the financial statements include the impact of the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, please see Note 19 on page 78. 44 NOTE 2 — CASH AND INVESTMENTS As of September 30, 2020, the County had the following cash, cash equivalents and investments: Final First Investment Maturities Fair Value Call Date Cash on hand Demand deposits Cash with fiscal agent Money market / CD State Board of Administration Pool: Florida PRIME Other Intergovernmental Pools: FLCLASS FL PALM Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank US Treasury Note US Treasury Note US Treasury Bill US Treasury Note US Treasury Note US Treasury Note US Treasury Note Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank US Treasury Note US Treasury Note Federal Farm Credit Bank Federal Farm Credit Bank US Treasury Note US Treasury Note US Treasury Note Federal Farm Credit Bank US Treasury Note US Treasury Note Federal Home Loan Mortgage Corp Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corp Federal Farm Credit Bank Federal Farm Credit Bank *Standard and Poor's rating N/A $ 86,909 N/A N/A 86,644,245 N/A N/A 10,777,635 N/A N/A 683,085 N/A N/A 563,178,550 N/A N/A N/A 10/01/20 10/01/20 10/01/20 10/31/20 11 /15/20 11/19/20 12/31/20 07/31/21 09/30/21 10/15/21 10/21/21 12/02/21 12/23/21 12/31/21 12/31/21 01 /13/22 02/03/22 02/28/22 04/15/22 05/15/22 06/09/22 06/30/22 08/31/22 12/09/22 03/03/23 04/13/23 08/11/23 11/27/23 01/22/24 03/28/24 05/28/24 05/13/25 09/16/25 150,128,825 150,073,482 10,000,000 10,000,000 25,000,000 250,335 501,535 99,987,700 483,830 504,180 252,442 25,708,975 500,460 551,195 500,005 50,929,700 50,930,000 250,833 25,098,153 511,445 516,330 516,210 499,855 400,000 324,987 500,280 10,197,289 499,530 500,025 500,025 250,015 499,760 500,355 500,135 499,260 $ 1,280,237,575 N/A N/A none none none none none none none none none none none none none none none none 02/03/21 none none none none none none none none none none none none none none none none Call Frequency N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A continuously N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Rating * AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ 45 NOTE 2 — CASH AND INVESTMENTS (Continued) The County maintains a cash and investment pool that is available for use by all funds. Each fund's portion of this pool is displayed on the balance sheet under the heading of Cash and Investments. Investment income is allocated monthly to participating funds based on the percentage of each fund's average daily balance in the total pool. CREDIT RISK Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The County's investment policy limits credit risk by restricting authorized investments to the Florida Local Government Surplus Trust Fund (Florida PRIME), other Local Government Investment Pools rated AAAm/Aaa-mf, S1 or equivalent, local direct obligations of, or obligations backed by the full faith and credit of the United States Government, U.S. government sponsored Corporation/Instrumentalities (except for Student Loan Marketing Association), certificates of deposit collateralized by U.S. Government Securities or Agencies, fixed income mutual funds collateralized by U.S. Government Securities or Agencies, domestic bankers' acceptances rated "AA" or higher, prime commercial paper rated "A-1" and "P-1", tax-exempt obligations rated "AX or higher and issued by state or local governments, NOW accounts fully collateralized in accordance with Chapter 280, Florida Statutes and qualifying repurchase agreements. The policy requires that each firm involved in a repurchase agreement must execute the County's master repurchase agreement, a third party custodian must hold collateral for all repurchase agreements with a term of more than one day and the market value of the collateral shall maintain a minimum price of 101 percent on U.S. Government securities and 104 percent on Agencies and Instrumentalities with a term over five (5) years, and must be marked to market at least weekly. Florida PRIME is an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. As of September 30, 2020, the County had $563,178,550 invested in the State Board of Administration's Local Government Surplus Funds Trust Fund Investment Pool. All of these funds are held in the Florida PRIME pool. Florida PRIME is rated "AAAm" by Standard & Poor's Global Ratings Services. Florida Cooperative Liquid Assets Securities System (FLCLASS) is an intergovernmental investment pool established pursuant to the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and is an authorized investment under Section 218.415, Florida Statutes. FLCLASS is supervised by a board of trustees comprised of eligible participants of the FLCLASS program. As of September 30, 2020, the County had $150,128,825 invested in FLCLASS. FLCLASS is rated "AAAm" by Standard & Poor's Global Ratings Services. Florida Public Assets for Liquidity Management (FL PALM) is a common law trust organized under the authority of the Florida Interlocal Cooperation Act of 1969, as amended, (Section 163.01, Florida Statutes) and Section 218.415 of the Florida Statutes. FL PALM was created on October 22, 2010 by contract among its participating governmental units and is governed by trustees. The fund is an investment opportunity for State school districts, political subdivisions of the State or instrumentalities of political subdivisions of the State. As of September 30, 2020, the County had $150,073,482 invested in FL PALM. The FL PALM Portfolio is rated "AAAm" by Standard & Poor's Global Ratings Services. All cash deposits are held in qualified public depositories pursuant to Florida Statutes Chapter 280, "Florida Security for Public Deposits Act". Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, multiplied by the depository's collateral pledging level. The pledging level may range from 25% to 150% depending upon the depository's financial condition. Any losses to public deposits are covered by applicable deposit insurance, sale of securities pledged as collateral, and if necessary, assessments against other qualified public depositories of the same type as the depository in default. CUSTODIAL CREDIT RISK Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of September 30, 2020, the County had demand deposits of $86,644,245. All balances in excess of the Federal Depository Insurance Corporation (FDIC) insurance for these demand deposits are fully collateralized by the multiple financial institutions' collateral pool in accordance with Florida Statutes Section 280. The discretely presented component unit demand deposits of $228,139 are secured by the FDIC as individual entity balances do not exceed $250,000. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The County's investment policy requires execution of a third -party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the County's name. 46 NOTE 2 — CASH AND INVESTMENTS (Continued) INTEREST RATE RISK Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. One of the primary objectives of the investment policy is to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements. The County limits exposure to interest rate risk by structuring the portfolio to meet daily cash flow demands. Investments shall have an average maturity of not more than five years, except for mortgage securities. Mortgage securities will not be used to match liabilities that are reasonably definable as to amount and disbursement date and are used to invest funds associated with reserves or liabilities that are not associated with a specifically identified cash flow schedule. The weighted average days to maturity (WAM) of Florida PRIME on September 30, 2020, was 48 days. Next interest rate reset dates for floating rate securities are used in the calculation of the WAM. The weighted average life (WAL) of Florida PRIME at September 30, 2020, was 63 days. The weighted average days to maturity (WAM) of FL PALM on September 30, 2020, was 46 days, while the weighted average life (WAL) was 76 days. The weighted average days to maturity (WAM) of FL CLASS on September 30, 2020, was 51 days, while the weighted average life (WAL) was 82 days. The portion of the County's cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2020: Issuer % of Portfolio Federal Home Loan Bank 3.51 % Federal Farm Credit Bank 3.19% Federal Home Loan Mortgage Corporation 0.08% Total U.S. Government Agencies 6.78% Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments $ 560,203,561 Cash with Fiscal Agent 10,777,635 Restricted cash and investments - current 51,112,052 Restricted cash and investments - noncurrent 622,713,291 Agencyfunds: Cash and investments 35,431,036 Total $ 1,280,237,575 FAIR VALUE MEASUREMENTS GASB Statement No. 72, Fair Value Measurements and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under GASB Statement No. 72 are described as follows: Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the County has the ability to access. Level 2 — Inputs to the valuation methodology include: Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; Inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Unobservable inputs, if any, reflect the County's own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the County's own data. The County has the following recurring fair value measurements as of September 30, 2020: US Treasury Notes and Bills classified as Level 1 of the fair value hierarchy were valued using prices quoted in active markets for those securities. As of September 30, 2020, the fair value of the County's US Treasury Notes and Bills was $231,817,669. US Agency obligations classified as Level 2 of the fair value hierarchy were valued using quoted prices for similar assets in active markets for those securities. As of September 30, 2020, the fair value of the County's US Agency obligations was $86,847,175. 47 NOTE 3 — TRADE RECEIVABLES Trade receivables for Governmental and Business -type Activities are net of an allowance for doubtful accounts as follows: General Fund Bayshore Gateway Community Redevelopment Agency Nonmajor Governmental Funds Total receivables reported in Governmental Funds Total receivables reported in Internal Service Funds Total Governmental Activities trade receivables Less Allowance Trade for Doubtful Net Trade Receivables Accounts Receivables $ 1,521,153 $ 688,639 $ 832,514 12,720 12,720 - 3,297,753 397,304 2,900,449 4,831,626 1,098,663 3,732,963 1,194,317 14,519 1,179,798 $ 6,025,943 $ 1,113,182 $ 4,912,761 County Water and Sewer $ 13,879,650 $ 9,411 $ 13,870,239 Solid Waste Disposal 1,107,406 261 1,107,145 Emergency Medical Services 22,674,604 21,049,180 1,625,424 Nonmajor Enterprise Funds 65,589 21,058 44,531 Total Business -type Activities trade receivables $ 37,727,249 $ 21,079,910 $ 16,647,339 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Loan Program (HOME), Disaster Recovery Initiative (DRI), Neighborhood Stabilization Program (NSP) and the State Housing Initiative Partnership Program (SHIP) in addition to some affordable housing impact fee programs. If the homeowners remain in their homes for the full term of the agreement, the loan or deferred impact fee is forgiven. If the property is transferred or sold before the end of the agreement, the proceeds from the repayment including interest, if any, are then repaid and returned to the appropriate program. A lien is placed against the property to ensure the repayment of the loan and interest, if any. As collection is uncertain on these loans, they are not recognized in the financial statements. NOTE 4 — LEASE RECEIVABLES The County leases land, building, office space and equipment to third parties. As of September 30, 2020, the County's lease receivables were valued at $8,605,201 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $8,372,027. The lease receivables for Governmental and Business -type Activities at September 30, 2020 were as follows: GOVERNMENTAL ACTIVITIES Land leases - annual lease payments totaling $87,957 plus interest at a rate of 2.29%, due dates ranging from January 20, 2021 to April 12, 2049. $5,598,174 Building and office space leases - annual lease payments totaling $53,192 plus interest at a rate of 2.29%, due dates ranging from October 1, 2020 to August 31, 2029. 546,130 Equipment leases - annual lease payments totaling $73,668 plus interest at a rate of 2.29%, due dates ranging from December 19, 2020 to May 21, 2031. 877,011 Total Governmental Activities Lease Receivables $7,021,315 48 NOTE 4 - LEASE RECEIVABLES (Continued) BUSINESS -TYPE ACTIVITIES Land leases - annual lease payments totaling $13,435 plus interest at a rate of 2.29%, due dates ranging from August 26, 2021 to August 25, 2042. Building and office space leases - annual lease payments totaling $187,813 plus interest at a rate of 2.29%, due dates ranging from October 1, 2020 to August 14, 2028. Total Business -type Activities Lease Receivables The payments for the lease receivables are expected to be received in the subsequent years as follows: Fiscal Year 2021 2022 2023 2024 2025 Governmental Activities Business -like Activities Principal $214,817 224,816 252,229 270,634 290,770 Interest $155,934 151,007 145,544 139,990 133,225 2026-2030 1,606,468 557,513 2031-2035 1,275,925 402,731 2036-2040 1,802,905 229,424 2041-2045 737,105 71,894 2046-2050 345,646 12,276 Principal $201,248 213,851 101,062 80,308 83,783 333,953 211,649 293,017 65,015 Interest $33,692 29,050 25,364 23,622 21,697 81,351 55,614 27,700 1,340 $7,021,315 $1,999,538 $1,583,886 $299,430 $813,827 770,059 $1,583,886 The County has two leasing agreements which qualify to be treated as regulated in accordance with the requirements of GASB 87. The County leases land and a building to third parties under these agreements. The land lease is for twenty one years with an option to extend for nine years and annual lease payments of $2,448. The building lease is for ten years and monthly lease payments of $1,753. The County recognized $23,491 in lease revenue during the current fiscal year related to these leases. As of September 30, 2020, the remaining nominal amount of revenue that will be recognized as revenue over the lease term associated with these leases amounts to $126,413 which is expected to be received for each of the subsequent five years and in five-year increments thereafter as stated below: Fiscal Year Business -type Activities 2021 $23,491 2022 23,491 2023 18,231 2024 2,448 2025 2,448 2026-2030 12,240 2031-2035 12,240 2036-2040 12,240 2041-2045 12,240 2046-2050 7,344 49 NOTE 5 — INTERFUND PAYABLES AND RECEIVABLES ADVANCES Advances were made to funds for the purposes of capital acquisitions and improvements. Reimbursements will take place over the next several years as funds are available. Advances to and advances from other funds at September 30, 2020 were as follows: Governmental Activities: General Fund Immokalee Community Redevelopment Agency Other governmental funds: Unincorporated Area MSTD Community Development Improvement Districts Fire Control Districts Other Capital Projects Total Governmental Activities Business -type Activities: County Water and Sewer Solid Waste Disposal Other business -type funds: Airport Authority Total Business -type Activities Total Advances Advance To Advance From $ 689,900 $ - - 118,902 364,802 1,065,758 - - 556,886 268,100 - 9,264 2,120,460 953,152 7,104,345 110,814 - 7,104,345 - 1,056,494 7,104,345 8,271,653 $ 9,224,805 $ 9,224,805 50 NOTE 5 - INTERFUND PAYABLES AND RECEIVABLES (Continued) DUE FROM AND DUE TO Interfund receivables and payables generally result from recording the excess fees associated with Tax Collector and Property Appraiser services, as excess fees are allocated from the General Fund back to the funds that paid for the collection services. Excess fees are calculated after year end, and as such are interfund receivables and payables. Other outstanding balances are the result of time delays between the provision and payment of interfund services and to cover temporary cash deficits. Due from and due to other funds at September 30, 2020 were as follows: Governmental Activities: General Fund Bayshore Gateway Community Redevelopment Agency Infrastructure Sales Tax Other Governmental Funds: Road Districts Unincorporated Area MSTD Community Development Water Management and Pollution Control Pelican Bay Special Revenue Grants and Shared Revenues Improvement Districts Fire Control Districts Lighting Districts 911 Enhancement Fee Tourist Development Conservation Collier Other Public Safety Revenue Funds Forest Lakes Limited General Obligation Bonds Special Obligation Revenue Bonds County -Wide Capital Improvement Parks Improvements County Wide Library Correctional Facilities Impact Fee Emergency Medical Services Impact Fee Water Management Pelican Bay Capital Parks Impact Fee Road Construction Government Facilities Impact Fee Law Enforcement Impact Fee Other Capital Projects Total other governmental funds Business -type Activities: County Water and Sewer Solid Waste Other Business -type funds: Collier Area Transit Total other Business -type funds Internal Service Funds Total All Funds Due From Due To $ 3,377,388 $ 1,539,625 - 363,346 102,015 - 678,300 23,103 439,401 2,447 9,553 - 16,878 25,218 - 211,033 1,719,319 27,219 1,000 7,750 619 4,648 - - 1,099,747 23,369 2 - 54,722 3,173 - - 8,567,500 27,340 260,691 105 - 320,700 1,059,900 162,600 307,092 4,482 1,950,715 1,058,904 2,176,000 393,500 696 - 8,885,209 11,752,517 $ 164,427 $ 49,679 660,687 4,800 96,908 83,467 96,908 83,467 506,800 - $ 13,793,434 $ 13,793,434 51 NOTE 6 - CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2020 is as follows: Governmental Activities: Capital assets not depreciated: Land and other non -depreciable assets Construction in progress Total capital assets not depreciated Capital assets depreciated: Buildings Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased land Right -to -use leased buildings Right -to -use leased equipment Total capital assets depreciated Less accumulated depreciation: Buildings Infrastructure Improvements other than buildings Machinery and equipment Right -to -use leased land Right -to -use leased buildings Right -to -use leased equipment Total accumulated depreciation October 1, 2019, as October 1, previously 2019, as Transfers and September 30, reported restated(') Additions Deductions Reclassifications 2020 $ 464,558,594 $ 464,558,594 $ 5,745,681 $ 241,426 $ 3,352,419 $ 473,415,268 59,435,613 59,435,613 103,498,827 28,891 (80,552,462) 82,353,087 523,994,207 523,994,207 109,244,508 270,317 (77,200,043) 555,768,355 465,301,769 465,301,769 119,102 88,073 14,113,719 479,446,517 1,146,042,544 1,146,042,544 331,946 - 44,431,091 1,190,805,581 317,826,526 317,826,526 1,152,598 158,864 15,446,652 334,266,912 244,154,023 244,154,023 25,794,718 9,110,603 3,119,857 263,957,995 - 454,273 - - - 454,273 4,108,627 36,730 4,145,357 3,064,111 584,004 - - 3,648,115 2,173,324,862 2,180,951,873 28,019,098 9,357,540 77,111,319 2,276,724,750 219,224,605 219,224,605 14,797,103 50,986 - 233,970,722 481,749,198 481,749,198 37,175,607 - 2,212 518,927,017 206,895,739 206,895,739 9,276,636 115,299 - 216,057,076 170,682,640 170,682,640 23,173,126 8,303,821 (85) 185,551,860 - - 45,891 - - 45,891 662,979 662,979 472,107 - - 472,107 1,078,552,182 1,078,552,182 85,603,449 8,470,106 2,127 1,155,687,652 Total depreciable capital assets, net 1,094,772,680 1,102,399,691 (57,584,351) 887,434 77,109,192 1,121,037,098 Total Governmental Activities capital assets, net Business -type Activities: Capital assets not depreciated: Land and other non -depreciable assets Construction in progress Total capital assets not depreciated Capital assets depreciated: Buildings Improvements other than buildings Machinery and equipment Right -to -use leased buildings Right -to -use leased equipment Total capital assets depreciated Less accumulated depreciation: Buildings Improvements other than buildings Machinery and equipment Right -to -use leased buildings Right -to -use leased equipment Total accumulated depreciation $ 1,618,766,887 $ 1,626,393,898 $ 51,660,157 $ 1,157,751 $ (90,851) $ 1,676,805,453 $ 34,228,706 $ 34,228,706 $ 85,968 $ - $ 114,856 $ 34,429,530 80,526,056 80,526,056 77,911,357 344,717 (13,622,717) 144,469,979 114,754,762 114,754,762 77,997,325 344,717 (13,507,861) 178,899,509 167,513,712 167,513,712 - 302,818 972,202 168,183,096 1,300,085,703 1,300,085,703 17,264,471 169,287 12,311,680 1,329,492,567 85,971,864 85,971,864 6,356,071 2,910,460 312,703 89,730,178 - 751,507 - - - 751,507 22,135 136,321 - 158,456 1,553,571,279 1,554,344,921 23,756,863 3,382,565 13,596,585 1,588,315,804 98,078,542 98,078,542 5,222,840 171,162 - 103,130,220 554,437,436 554,437,436 41,857,900 132,269 (2,212) 596,160,855 49,022,736 49,022,736 8,363,979 2,701,959 85 54,684,841 - - 80,513 - - 80,513 - - 30,616 - 30,616 701,538,714 701,538,714 55,555,848 3,005,390 (2,127) 754,087,045 Total depreciable capital assets, net 852,032,565 852,806,207 (31,798,985) 377,175 13,598,712 834,228,759 Total Business -type Activities capital assets, net $ 966,787,327 $ 967,560,969 $ 46,198,340 $ 721,892 $ 90,851 $ 1,013,128,268 (1) Restatement of capital assets as of October 1, 2019 is a result of implementing GASB Statement No. 87, Leases during the 2020 fiscal year. For additional information, please see Note 19 on page 76. 52 NOTE 6 - CAPITAL ASSETS (Continued) Schedule of depreciation and amortization for fiscal year 2020: General Government $ 7,881,700 Public Safety 20,837,484 Physical Environment 6,231,447 Transportation 36,303,440 Economic Environment 778,475 Human Services 314,311 Culture and Recreation 9,438,228 Subtotal 81,785,085 Internal Service Funds 3,818,364 Total Governmental Activities $ 85,603,449 Water and Sewer $ 48,113,763 Solid Waste 1,913,955 EMS 1,893,202 Airport Authority 1,551,049 Mass Transit 2,083,879 Total Business -type Activities $ 55,555,848 NOTE 7 - LONG-TERM DEBT SUMMARY OF CHANGES IN LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations for the year ended September 30, 2020: Governmental Activities: Limited General Obligation Bonds Revenue Bonds Payable Premium on Bonds Payable Direct Placement Loans and Notes Financed Purchase Obligations Leases Payable Self -Insurance Claims Compensated Absences Total Business -type Activities: Revenue Bonds Payable Premium on Bonds Payable Direct Placement Loans and Notes Notes Payable Financed Purchase Obligations Leases Payable Landfill Closure Liability Compensated Absences Total 000's Omitted October 1, 2019, as Premium September Due within restated Additions Reductions Amortized 30, 2020 one year $ 1,555 $ $ (495) $ $ 1,060 $ 520 213,295 (15,530) 197,765 13,810 13,606 (1,546) 12,060 - 145,952 (9,403) 136,549 11,484 153 (97) 56 27 7,619 620 (984) 7,255 1,078 11,870 67,444 (68,950) 10,364 8,331 31,541 4,251 (3,488) - 32,304 11,284 $ 425,591 $ 72,315 $ (98, 447) $ (1,546) $ 997,413 $ 46,534 $ 124,290 $ $ $ - $ 124,290 $ 15,092 (858) 14,234 - 113,576 - (15,411) - 98,165 15,689 66 4 - 70 70 173 - (94) 79 79 774 136 (102) 808 105 1,731 - (75) 1,656 52 3,345 2,415 (2,077) - 3,683 2,946 $ 259,047 $ 2,555 $ (17,759) $ (858) $ 242,985 $ 18,941 53 NOTE 7 — LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2020 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Limited General Obligation Bonds $6,215,000 2007 Limited General Obligation Bonds, Forest Lakes Roadway and Drainage Municipal Service Taxing Unit, due in installments of $300,000 to $540,000 through January 1, 2022; interest at 3.75%to 4.25% and collateralized by a limited ad valorem pledge of up to 4 mils. Bonds were issued for purposes of financing the costs of certain roadway lighting, drainage and restoration within the Forest Lakes Municipal Service Taxing Unit. $ 1,060,000 Total Governmental Activities Limited General Obligation Bonds Governmental Activities Revenue Bonds $ 1,060,000 $38,680,000 2012 Gas Tax Refunding Revenue Bonds, due in annual installments of $2,700,000 to $6,605,000 through June 1, 2023; interest at 3.00% to 5.00% and collateralized by a pledge on the combined gas tax proceeds. Bonds were issued for purposes of advance refunding the County's 2003 Gas Tax Revenue Bonds. $ 10,820,000 $24,620,000 2010B Special Obligation Refunding Revenue Bonds, due in annual installments of $1,830,000 to $2,630,000 through October 1, 2021; interest at 3.00% to 5.00% and collateralized by pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding the County's 2002 Capital Improvement Revenue Bonds. 5,160,000 $92,295,000 2011 Special Obligation Refunding Revenue Bonds, due in annual installments of $1,605,000 to $8,270,000 through October 1, 2029; interest at 2.50% to 5.00% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding a portion of the County's 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 46,165,000 $73,805,000 2013 Special Obligation Refunding Revenue Bonds, due in annual installments of $4,860,000 to $8,525,000 through October 1, 2035; interest at 3.50% to 4.00% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Bonds were issued for purposes of advance refunding all of the County's remaining 2003 and 2005 Capital Improvement and Refunding Revenue Bonds. 73,805,000 $62,965,000 2018 Tourist Development Tax Revenue Bonds, due in annual installments of $1,030,000 to $3,605,000 through October 1, 2048; interest at 4.00% to 5.00% and collateralized by a pledge on tourist development tax revenues. Bonds were issued for purposes of financing the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. 61,815,000 Total Governmental Activities Revenue Bonds $ 197,765,000 54 NOTE 7 — LONG-TERM DEBT (Continued) Governmental Activities Direct Placement Loans and Notes Payable $89,780,000 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,065,000 to $13,265,000 through June 1, 2025; interest at 2.69% and collateralized by a pledge on the combined gas tax proceeds. Loan was issued to advance refund a portion of the County's 2005 Gas Tax Revenue Bonds. $ 51,015,000 $43,713,000 2017 Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $113,000 to $3,724,000 through July 1, 2034; interest at 3.09% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to advance refund a portion of the County's 2010 Special Obligation Revenue Bonds. 43,083,000 $28,060,000 2019 Special Obligation Taxable Revenue Note (Bank Term Loan) due in annual installments of $1,555,000 to $5,165,000 through October 1, 2029; interest at 2.74% and collateralized by a pledge on legally available non -ad valorem revenues, including but not limited to the proceeds of the local government half cent sales tax, state revenue sharing, communications services tax and charges and services generated by governmental activities. Loan was issued to acquire the real property known as the Golden Gate Golf Course. 28,060,000 $12,000,000 issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program due on June 6, 2023; monthly variable interest for the current fiscal year of 1.26% to 2.49%, based on the underlying commercial paper that is purchased and collateralized by all legally available non -ad valorem revenues. Loan was issued for purposes of purchasing a parcel of land for the County's amateur sports complex. 11,100,000 $5,293,293 2017 Bayshore Gateway Community Redevelopment Agency Taxable Note with TD Bank, N.A., due in monthly installments of $35,574 to $52,349 through March 1, 2027; interest at 3.56% and collateralized by a pledge on all legally available non -ad valorem revenues of the Bayshore Gateway Community Redevelopment Agency. Note was issued to refund the 2013 Collier County Community Redevelopment Agency Taxable Note (Fifth Third Bank). 3,291,218 Total Governmental Activities Direct Placement Loans and Notes Payable Total Governmental Activities Obligations Unamortized Bond Premium Governmental Activities Obligations, Net Less Current Portion of Governmental Activities Obligations Long -Term Portion of Governmental Activities Obligations, Net $ 136,549,218 335,374,218 12,060,392 347,434,610 (25,814,308) $ 321,620,302 55 NOTE 7 — LONG-TERM DEBT (Continued) BUSINESS -TYPE ACTIVITIES Business -type Activities Revenue Bonds $48,105,000 2016 Collier County Water and Sewer Refunding Revenue Bonds due in annual installments of $5,035,000 to $7,090,000 through July 1, 2036; interest at 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of currently refunding all of the District's remaining 2006 Water and Sewer Revenue Bonds. $ 48,105,000 $76,185,000 2019 Collier County Water and Sewer Revenue Bonds due in annual installments of $4,385,000 to $14,160,000 through July 1, 2039; interest at 3.00% to 5.00% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District (District). Bonds were issued for purposes of financing the acquisition, construction and equipping of various utility capital improvements within the northeast area of the County. 76,185,000 Total Business -type Activities Revenue Bonds Business -type Activities Direct Placement Loans and Notes Payable $ 124,290,000 $17,769,080 2013 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $1,369,430 to $4,312,275 through July 1, 2021; interest at 1.47% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District's 2003B Water and Sewer Refunding Revenue Bonds. $ 1,442,962 $17,687,000 2015 Collier County Water and Sewer Refunding Revenue Bond (Bank Term Loan) due in annual installments of $2,533,000 to $4,561,000 through July 1, 2022; interest at 1.75% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to advance refund a portion of the District's 2006 Water and Sewer Revenue Bonds. 7,283,000 $35,965,000 2018 Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $1,560,000 to $3,945,000 through July 1, 2029; interest at 2.41 % and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to finance the acquisition of water and wastewater utility facilities within the Golden Gate Community. 29,890,000 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note with Synovus Financial Corporation, due in monthly installments of $2,881,000 to $9,574,000 through July 1, 2029; interest at 1.80% and collateralized by a subordinated pledge on the net revenues of the Collier County Water and Sewer District. Loan was issued to currently refund all of the District's State Revolving Fund Loans. 59,549,000 Total Business -type Activities Direct Placement Loans and Notes Payable $ 98,164,962 Business -type Activities Note Payable $166,580 County Water and Sewer District agreement with private developer payable through use of sewer impact fee credits. Non -interest bearing agreement. $ 69,847 Total Business -type Activities Note Payable $ 69,847 Total Business -type Activities Obligations $ 222,524,809 Unamortized Bond Premium $ 14,233,821 Business -type Activities Obligations, Net $ 236,758,630 Less Current Portion of Business -type Activities Obligations Payable from Unrestricted Assets $ (11,766,724) Less Current Portion of Business -type Activities Obligations Payable from Restricted Assets (3,992,086) Long -Term Portion of Business -type Activities Obligations, Net $ 220,999,820 56 NOTE 7 — LONG-TERM DEBT (Continued) SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, capitalized leases, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Year Limited General Obligation Bonds Principal Interest Revenue Bonds Principal Interest Direct Placement Loans and Notes Payable Principal Interest Totals 2021 $ 520,000 $ 34,000 $ 13,810,000 $ 7,994,356 $ 11,484,308 $ 4,054,686 $ 37,897,350 2022 540,000 11,475 14,470,000 7,304,256 11,769,702 3,746,825 37,842,258 2023 - - 12,395,000 6,672,407 24,145,762 3,251,626 46,464,795 2024 9,070,000 6,116,981 18,531,510 2,432,768 36,151,259 2025 9,525,000 5,734,806 18,921,975 1,963,787 36,145,568 2026-30 44,165,000 23,330,648 37,462,961 5,347,281 110,305,890 2031-35 48,045,000 14,294,763 14,233,000 1,116,417 77,689,180 2036-40 18,415,000 6,927,225 - - 25,342,225 2041-45 14,265,000 4,191,900 18,456,900 2046-50 13,605,000 1,115,100 14,720,100 Total $ 1,060,000 $ 45,475 $197,765,000 $ 83,682,442 $136,549,218 $ 21,913,390 $441,015,525 Business -type Activities Fiscal Year Revenue Bonds Direct Placement Loans and Notes Payable Notes Payable Totals Principal Interest Principal Interest Principal Interest 2021 $ $ 5,196,781 $ 15,688,962 $ 1,940,895 $ 69,847 $ $ 22,896,485 2022 5,196,781 14,852,000 1,650,373 - 21,699,154 2023 5,196,781 11,539,000 1,370,677 18,106,458 2024 5,196,781 11,763,000 1,141,595 18,101,376 2025 5,196,781 11,429,000 907,993 17,533,774 2026-30 14,710,000 25,732,155 32,893,000 1,570,658 74,905,813 2031-35 55,820,000 17,273,078 - - 73,093,078 2036-40 53,760,000 4,711,550 - - - 58,471,550 Total $124,290,000 $ 73,700,688 $ 98,164,962 $ 8,582,191 $ 69,847 $ $304,807,688 RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2007 Forest Lakes Roadway and Drainage Municipal Service Taxing Unit (MSTU) Limited General Obligation Bonds, the County has covenanted to levy up to 4 mills on the property within the MSTU to pay debt service on the bonds. The MSTU collected $807,944 in ad valorem taxes for the fiscal year ended September 30, 2020. According to County resolutions authorizing the issuance of the Series 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds and Series 2017 and 2019 Special Obligation Refunding Revenue Notes, the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from certain non -ad valorem revenues amounts sufficient to pay principal and interest on the combined Special Obligation Bonds and Notes. The total non -ad valorem revenue collections pledged to payment of the Special Obligation Bonds and Notes for the fiscal year ended September 30, 2020 was $121,456,454. According to County resolutions authorizing the issuance of the Series 2012 Gas Tax Revenue Refunding Bonds and Series 2014 Gas Tax Refunding Revenue Bond, the issues are payable from and secured by liens on gas tax revenues. Total pledged gas tax revenues for the fiscal year ended September 30, 2020 were $21,004,862. According to County resolutions authorizing the issuance of the Series 2018 Tourist Development Tax Revenue Bonds, the issues are payable from and secured by a lien on tourist development tax revenues. Total tourist development tax revenues for the fiscal year ended September 30, 2020 were $26,062,312. 57 NOTE 7 — LONG-TERM DEBT (Continued) The covenants of the loan agreement authorizing the Florida Local Government Finance Commission loan include appropriation in the annual amounts of non -ad valorem revenues or other legally available funds sufficient to satisfy the loan repayments. The total of non -ad valorem revenues available for loan repayments for the fiscal year ended September 30, 2020 was $250,792,851. Bayshore Gateway Community Redevelopment Agency (Agency) tax increment revenues are pledged for the repayment of the Agency's Series 2017 taxable note. The Agency has additionally covenanted to budget and appropriate from all legally available non -ad valorem revenues of the Agency to pay the Series 2017 note to the extent the tax increment revenues are insufficient. The tax increment revenues for the fiscal year ended September 30, 2020 totaled $1,995,700, with other legally available non -ad valorem revenues of $503,872. The Series 2017 note does not constitute an indebtedness of the County and is payable solely from the security provided by the Bayshore Gateway Community Redevelopment Agency. The Agency is required to have a debt service reserve balance with the lending bank of $315,026 as of the end of fiscal year 2020. The Agency was in compliance with these covenants for the year ended September 30, 2020. The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $162,905,963 in Series 2013, 2015, 2016, 2018 and 2019 revenue bonds and direct placement loans. Proceeds from the bonds and loans were used for the expansion of the District's water and sewer systems as well as the refinancing of bonds issued for purposes of rehabilitation or expansion of the District's water and sewer systems. Principal and interest are payable through July 1, 2039, solely from the net revenues and certain other fees and charges derived from operation of the County's Water and Sewer District (District). The pledge of net revenues by the District from the operation of the system does not constitute a lien upon the system or any other property of the County. The resolutions authorizing the revenue bonds and loans include an obligation for the District to fix, establish and maintain such rates and collect such fees so as to provide in each year net revenues, as defined in the bond resolutions, which together with system development fees (impact fees) and special assessment proceeds (if applicable) received shall be at least 125% of the annual debt service requirements for the bonds and loans; provided, however, that net revenues in each fiscal year shall be adequate to pay at least 100% of the annual debt service on the bonds and loans. Fiscal year 2020 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $68,577,591, and $84,902,094 when system development fees were included. Principal and interest paid on the bonds and loans during fiscal year 2020 totaled $12,573,068, providing coverage of 545% and 675%, respectively. In addition, bond covenants require a renewal and replacement amount equal to $300,000 in the District funds. The District was in compliance with these covenants for the year ended September 30, 2020. The District has a note outstanding in the amount of $59,549,000 with Synovus Financial Corporation. This note is collateralized by a lien on pledged revenues consisting of net revenues from the operations of the County Water and Sewer System and system development fees. The lien is subordinate in all respects to the liens placed upon pledged revenues established by bonded and direct placement loan indebtedness. Pledged funds, after payment of annual debt service on the senior bonds and loans, shall be adequate to pay at least 115% of the annual debt service on the subordinated debt. Principal and interest paid on the subordinated note during fiscal year 2020 totaled $10,261,368, providing coverage of 705%. The District's note was in compliance with these covenants for the year ended September 30, 2020. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit FINANCED PURCHASE OBLIGATIONS Financed purchase obligations at September 30, 2020 amounted to $134,354. These obligations, which are collateralized by equipment and vehicles, have total annual installments ranging from $29,702 to $78,693 including interest ranging from 0.0%to 4.45% and mature through 2022. As of year-end, equipment acquired through financed purchase in the governmental activities had a historical cost of $245,588 and accumulated depreciation of $208,750. Equipment acquired through financed purchase in the business -type activities had a historical cost of $571,158 and accumulated depreciation of $485,484. 58 NOTE 7 — LONG-TERM DEBT (Continued) Future payments of financed purchase obligations as of September 30, 2020 were as follows: 2021 2022 Total payments Less amount representing interest Present value of financed purchase payments LEASE PAYABLE Governmental Business -type Activities Activities Total $ 29,702 $ 78,693 $ 108,395 29,702 - 29,702 59,404 78,693 138,097 (3,743) - (3,743) $ 55,661 $ 78,693 $ 134,354 The County is a lessee for noncancellable leases of land, building, office space and equipment. At September 30, 2020, the County's lease payable of $8,063,564 was composed of the following: GOVERNMENTAL ACTIVITIES Leases with options to purchase equipment - annual payments totaling $85,155 plus interest at rates ranging from 0.32% to 11.75%, due dates ranging from October 1, 2020 to June 1, 2024. $169,487 Land leases - annual payments totaling $42,112 plus interest at rates ranging from 1.51 % to 2.40%, due dates ranging from October 1, 2020 to June 30, 2052. 408,835 Building and office space leases - annual payments totaling $560,670 plus interest at rates ranging from 1.42% to 2.11%, due dates ranging from October 1, 2020 to December 31, 2039. 3,595,273 Equipment and vehicle leases - annual payments totaling $390,465 plus interest at rates ranging from 0.14% to 1.93%, due dates ranging from October 1, 2020 to November 30, 2036. 3,081,782 Total Governmental Activities Lease Payable $7,255,377 BUSINESS -TYPE ACTIVITIES Lease with option to purchase equipment - annual payments totaling $5,492 plus interest at a rate of 1.51 %, due dates ranging from October 1, 2020 to September 30, 2023. $16,726 Building and office space leases - annual payments totaling $72,542 plus interest at rates ranging from 1.56% to 1.93%, due dates ranging from October 1, 2020 to September 30, 2034. 679,322 Equipment leases - annual payments totaling $27,362 plus interest at rates ranging from 0.24% to 1.55%, due dates ranging from October 1, 2020 to October 31, 2024. 112,139 Total Business -type Activities Lease Payable $808,187 59 NOTE 7 - LONG-TERM DEBT (Continued) The future principal and interest lease payments as of September 30, 2020, were as follows: Governmental Activities Business -type Activities Fiscal year Principal Interest Principal Interest 2021 $ 1,078,402 $ 118,967 $ 105,396 $ 13,191 2022 863,976 100,615 95,407 11,552 2023 773,797 86,613 97,703 9,949 2024 704,839 75,226 94,708 8,371 2025 635,571 63,908 71,630 6,939 2026-2030 1,490,480 228,379 212,876 20,675 2031-2035 1,118,072 107,067 130,467 4,583 2036-2040 587,307 25,942 - - 2041-2045 1,250 250 2046-2050 1,388 112 2051-2055 295 5 - - Total $ 7,255,377 $ 807,084 $ 808,187 $ 75,260 NOTE 8 - CONDUIT DEBT OBLIGATIONS COMPONENT UNIT CONDUIT DEBT The Industrial Development Authority, Housing Finance Authority, Health Facilities Authority and Educational Facilities Authority, all component units of Collier County, issue debt instruments for the purpose of providing capital financing to independent third parties. Industrial development revenue bonds have been issued to provide financial assistance to public entities for the acquisition and construction of industrial and commercial facilities. Housing revenue bonds have been issued for the purpose of financing the development of multi -family residential rental communities. The health facility revenue bonds were issued to provide financing for the construction of health park facilities. The educational facility revenue bonds were used to provide financing for the construction of educational facilities. These bonds were secured by the financed property, a letter of credit or a corporate guarantee. The primary revenues pledged to pay the debt are those revenues derived from the project or facilities constructed. Neither the issuing authority, nor the County, is obligated in any manner for repayment of the bonds and as such they are not reported as liabilities in the accompanying financial statements. As of September 30, 2020, the outstanding principal amount payable on all component unit conduit debt was $468,720,345 and is made up of the following: Industrial development revenue bonds $ 153,313,638 Housing finance revenue bonds 20,498,361 Health facilities revenue bonds 201,101,754 Educational facilities revenue bonds 93,806,592 Total $ 468,720,345 NOTE 9 - DEFINED BENEFIT PENSION PLANS BACKGROUND The Florida Retirement System (FRS) Pension Plan was created by Chapter 121, Florida Statutes, effective December 1, 1970. The FRS is a qualified retirement plan under Section 401(a), Internal Revenue Code, created to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions and benefits are defined and described in detail. Such provisions may be amended at any time by the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost sharing, multiple employer defined benefit plans and other nonintegrated programs. NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' web site (www. dms.myflorida.com). The County's pension expense totaled $81,905,295 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2020. FLORIDA RETIREMENT SYSTEM PENSION PLAN PLAN DESCRIPTION The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSC) — Members in senior management level positions. Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of - living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The following chart shows the percentage value for each year of service credit earned: Class, Initial Enrollment and Retirement Age/Years of Service: % Value (per year of service) Regular Class members initially enrolled before July 1, 2011 Retirement up to age 62 or up to 30 years of service 1.60 Retirement at age 63 or with 31 years of service 1.63 Retirement at age 64 or with 32 years of service 1.65 Retirement at age 65 or with 33 or more years of service 1.68 Regular Class members initially enrolled on or after July 1, 2011 Retirement up to age 65 or up to 33 years of service 1.60 Retirement at age 66 or with 34 years of service 1.63 Retirement at age 67 or with 35 years of service 1.65 Retirement at age 68 or with 36 or more years of service 1.68 Elected County Officers' Class 3.00 Senior Management Service Class 2.00 Special Risk Class Service from December 1, 1970 through September 30, 1974 2.00 Service on and after October 1, 1974 3.00 As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. CONTRIBUTIONS The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The employer contribution rates by job class for the periods from October 1, 2019 through June 30, 2020 and from July 1, 2020 through September 30, 2020, respectively, were as follows: Regular employees — 8.47% and 10.00%; Special Risk — Regular-25.48% and 24.45%; County Elected Officials — 48.82% and 49.18%1- Senior Management Services — 25.41 % and 27.29%; and DROP participants — 14.60% and 16.98%. The County's contributions to the FRS Plan were $27,741,964 for the year ended September 30, 2020. PENSION COSTS At September 30, 2020, the County reported a liability of $344,539,437 for its proportionate share of the FRS Plan's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The County's proportion of the net pension liability was based on the County's contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all of FRS's participating employers. At June 30, 2020, the County's proportion was 0.794942%, which was a decrease of 0.002895% from its proportion measured as of June 30, 2019. 62 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) For the year ended September 30, 2020, the County recognized pension expense of $74,404,564 for its proportionate share of FRS's pension expense. In addition, the County reported its proportionate share of FRS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Deferred Outflows of Inflows of Resources Resources $ 13,186,225 $ 62,372,601 20,514,209 4,858,223 2,906,074 7,743,020 $ 108,674,278 $ 2,906,074 Deferred outflows of resources related to pensions of $7,743,020, resulting from County contributions to the FRS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ending September 30 Amount 2021 $ 21,307,293 2022 31,616,219 2023 26,321,108 2024 15,416,597 2025 3,363,967 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Investment Rate of Return 6.80%, Net of Pension Plan investment expense Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward -looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. M NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) The target allocation, as outlined in the FRS Plan's investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table: Asset Class Target Allocation Annual Arithmetic Return Compound Annual (Geometric) Return Standard Deviation Cash 1.0% 2.2% 2.2% 1.2% Fixed income 19.0% 3.0% 2.9% 3.5% Global equity 54.2% 8.0% 6.7°% 17.1% Real estate (property) 10.3% 6.4% 5.8% 11.7% Private equity 11.1 % 10.8% 8.1 % 25.7% Strategic investments 4.4% 5.5% 5.3°% 6.9% Totals 100.0% Assumed Inflation - Mean 2.4% 1.7% DISCOUNT RATE The discount rate used to measure the total pension liability for the FRS Plan has decreased from 6.90% in fiscal year 2019 to 6.80% in fiscal year 2020. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: ion FRS Plan Discount Rate County's Proportionate Share of the FRS Plan Net Pension Liability PENSION PLAN FIDUCIARY NET POSITION 1 % Decrease in Current Discount 1 % Increase in Discount Rate Rate Discount Rate 5.80% 6.80% 7.80% $ 550,171,578 $ 344,539,437 $ 172,794,577 Detailed information about the FRS Plan's fiduciary net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. RETIREE HEALTH INSURANCE SUBSIDY PROGRAM PLAN DESCRIPTION The Retiree Health Insurance Subsidy Program (HIS Plan) is a non -qualified, cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. BENEFITS PROVIDED For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. 64 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) CONTRIBUTIONS The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. The FRS contribution rates include a 1.66% HIS Plan subsidy for the periods October 1, 2019 through June 30, 2020 and from July 1, 2020 through September 30, 2020, pursuant to Section 112.363, Florida Statutes. The County contributed 100 percent of its statutorily required contributions for the current and preceding 3 years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County's contributions to the HIS Plan were $3,982,772 for the year ended September 30, 2020. PENSION COSTS At September 30, 2020, the County reported a liability of $82,230,597 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2020. The County's proportion of the net pension liability was based on the County's contributions received during the measurement period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all participating employers. At June 30, 2020, the County's proportion was 0.673478%, which was a decrease of 0.009525% from its proportion measured as of June 30, 2019. For the year ended September 30, 2020, the County recognized pension expense of $7,500,731 for its proportionate share of HIS's pension expense. In addition, the County reported its proportionate share of HIS's deferred outflows of resources and deferred inflows of resources from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on HIS Program Investments Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions County Contributions Subsequent to the Measurement Date Total Deferred Outflows of Resources $ 3,363,730 8,842,130 65,655 Deferred Inflows of Resources $ 63,436 4,781,389 3,317,682 1,988,445 1,063,265 $ 16,652,462 $ 6,833,270 Deferred outflows of resources related to pensions of $1,063,265, resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ended September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase in pension expense as follows: Year Ending September 30 2021 2022 2023 2024 2025 Thereafter ACTUARIAL ASSUMPTIONS Amount 2,745,436 1,987,615 797,997 1,125,692 1,143,716 955,471 The total pension liability in the July 1, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.25%, including inflation Municipal Bond Rate 2.21 % Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2018. The actuarial assumptions used in the July 1, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2013, through June 30, 2018 NOTE 9 — DEFINED BENEFIT PENSION PLANS (Continued) DISCOUNT RATE The discount rate used to measure the total pension liability for HIS plan has decreased from 3.50% in fiscal year 2019 to 2.21 % in fiscal year 2020. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. PENSION LIABILITY SENSITIVITY The following presents the County's proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate HIS Plan Discount Rate 1.21 % 2.21 % 3.21 % County's Proportionate Share of the HIS Plan Net Pension Liability $ 95,054,897 $ 82,230,597 $ 71,733,940 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the HIS Plan's fiduciary's net position is available in a separately -issued FRS Pension Plan and Other State -Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.mytlorida.com. SUMMARY The aggregate amount of net pension liability, related deferred outflows of resources and deferred inflows of resources and pension expense for the County's defined benefit pension plans are summarized below: FRS Plan HIS Plan Total Net pension liability $ 344,539,437 $ 82,230,597 $ 426,770,034 Deferred outflows of resources related to pensions 108,674,278 16,652,462 125,326,740 Deferred inflows of resources related to pensions 2,906,074 6,833,270 9,739,344 Pension expense 74,404,564 7,500,731 81,905,295 NOTE 10 — DEFINED CONTRIBUTION PLAN The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer contribution of .06% of payroll from July 1, 2019 to June 30, 2020 and .06% of payroll from July 1, 2020 to June 30, 2021 in addition to forfeited benefits of plan members. The County's Investment Plan pension expense totaled $4,742,113 for the year ended September 30, 2020. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended NOTE 10 — DEFINED CONTRIBUTION PLAN (Continued) June 30, 2020, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. NOTE 11 —TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected in to the fund that statute or budget requires they be expended from, (2) move receipts restricted to debt service to the debt service fund as payments become due and (3) use unrestricted revenues collected in the General Fund to finance operating and capital programs accounted for in other funds in accordance with budgetary authorizations. Transfers for the year ended September 30, 2020 were as follows: Transfers from Fund Transfers to Fund Governmental Activities: General Fund Nonmajor Governmental Funds County Water and Sewer Solid Waste Disposal Emergency Medical Services Nonmajor Business -type Internal Service Funds Bayshore Gateway Community Redevelopment Agency General Fund Nonmajor Governmental Funds Immokalee Community Redevelopment Agency General Fund Bayshore Gateway Community Redevelopment Agency Nonmajor Governmental Funds General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Nonmajor Governmental Funds County Water and Sewer Internal Service Funds Business -type Activities: County Water and Sewer General Fund Nonmajor Governmental Funds Solid Waste Disposal Internal Service Funds Solid Waste Disposal General Fund Internal Service Funds Emergency Medical Services Internal Service Funds Nonmajor Business -type Nonmajor Governmental Funds Internal Service Funds General Fund Nonmajor Governmental Funds Total Transfers Amount 68,556,683 286 392,903 18,018,600 6,488,120 204,000 46,400 1,198,500 46,400 75,200 5,041,133 136,800 85,000 59,654,021 20,800 1,306,000 8,565,320 256,423 521,800 272,100 938,098 5,200 7,500 15,000 76,600 300,000 $ 172,228,887 NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION Net position represents the difference between total assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and is categorized as follows: Net investment in capital assets: Total capital assets, net of debt issued and deferred amounts on refundings related to the acquisition of these assets and net of depreciation is reported separately in the net position section. Restricted for growth related capital expansion: Impact fees are restricted for growth related capital expansion. Restricted for transportation capital projects: Gas taxes and other revenues restricted for transportation capital improvements. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated bythe former levy of one quarter mill of ad valorem revenues restricted for the maintenance and management of environmentally sensitive land. Restricted for community redevelopment: Tax increment revenues generated in the redevelopment areas are restricted for redevelopment purposes. Restricted for grants: State and federal government grant monies restricted for grant related purposes. Restricted for infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for debt service: Balances are restricted in conjunction with the issuance of bonds and have been funded by operating transfers from the appropriate funds. The use of monies in the sinking fund is restricted to the payment of principal and interest on long-term debt. Restricted for nonexpendable purposes — other: Balances are restricted in conjunction with the maintenance and management of certain conservation lands for mitigation purposes. Restricted for special revenues — other: Balances are restricted for specific uses associated with the revenue collected. Restricted for renewal and replacement: Balance is restricted in conjunction with the issuance of County Water and Sewer District Bonds for use in funding the cost of additions, replacement or major repair of District capital assets. Unrestricted: Balances are not restricted for specific purposes. Governmental funds report fund balances as either spendable or non -spendable as follows: Non -spendable fund balance: Amounts that are not in spendable form or that are legally or contractually required to be maintained intact. Items that are not spendable also include inventories, prepaid amounts and long term portions of advances, loans and notes receivable. Spendable fund balance: Restricted fund balance — Amounts that can be spent only for specific purposes through restrictions placed upon them by external resource providers such as creditors, grantors or contributors; or imposed by law through constitutional provisions or enabling legislation. Committed fund balance — Amounts that can be spent only for specific purposes determined by the County's highest decision making authority, the Board of County Commissioners, via ordinance. Commitments may be modified or removed by the Board of County Commissioners only by amending the ordinance that created the original commitment. Assigned fund balance — Amounts that are intended to be spent for specific purposes as determined by the Board of County Commissioners, but that are neither restricted nor committed to the specific purpose. Unassigned fund balance — Unassigned fund balance is the residual classification for the County's general fund. Amounts in this classification are spendable but have not been deemed restricted, committed or assigned. Unassigned fund balance may also include negative balances for any governmental fund whose expenditures have exceeded the amounts restricted, committed or assigned for those specific purposes. When both restricted and unrestricted amounts are available, the County spends the restricted amounts first, unless prohibited by law, grant agreements or other contractual arrangement. Further, when committed fund balance is available the County will use it first, followed by assigned fund balance and then unassigned fund balance for purposes in which any of the unrestricted fund balance classifications could be used. .: NOTE 12 — NET POSITION/FUND BALANCE CLASSIFICATION (Continued) A detailed schedule of fund balances at September 30, 2020 is as follows: Bayshore Gateway Immokalee Community Community Other Total General Redevelopment Redevelopment Infrastructure Governmental Governmental Fund Agency Agency Sales Tax Funds Funds Nonspendable: Endowments $ - $ $ $ $ 2,353,562 $ 2,353,562 Inventory 545,774 1,133,177 1,678,951 Advances to other funds 689,900 - 689,900 Notes 1,510,093 - 1,510,093 Prepaid costs 33,252 3,091 36,343 Total nonspendable fund balance 2,779,019 3,489,830 6,268,849 Restricted for: Community redevelopment $ - $ 12,666,635 $ 1,070,343 $ $ $ 13,736,978 Federal and state grants 1,087,185 - - - 10,576,964 11,664,149 Infrastructure sales tax capital projects - 122,674,183 - 122,674,183 Bond covenants or debt service - 7,383,688 7,383,688 Transportation growth related capital 107,920,233 107,920,233 Parks growth related capital expansion 39,494,870 39,494,870 Transportation capital projects 52,226,276 52,226,276 Community development 35,985,458 35,985,458 Transportation operations 2,585,364 2,585,364 Tourist development 105,338,954 105,338,954 Conservation Collier 29,551,595 29,551,595 Emergency 911 3,426,965 3,426,965 Law Enforcement 8,655,291 8,655,291 General government facilities 4,239,023 4,239,023 Libraries 1,101,982 1,101,982 Court functions 8,353,380 8,353,380 Public records modernization 5,646,992 5,646,992 Other purposes 1,582,047 1,582,047 Total restricted fund balance 1,087,185 12,666,635 1,070,343 122,674,183 424,069,082 561,567,428 Committed for: Special districts 33,146,104 33,146,104 Natural resource management 4,439,780 4,439,780 Utility regulation 1,280,712 1,280,712 Other purposes 2,650,567 2,650,567 Total committed fund balance 41,517,163 41,517,163 Assigned for: Parks and recreation 10,672,655 10,672,655 General building & improvements 18,018,578 18,018,578 Water management - 11,807,453 11,807,453 Subsequent year budget 10,306,900 - 10,306,900 Other purposes 1,357,027 12,114,670 13,471,697 Total assigned fund balance 11,663,927 52,613,356 64,277,283 Unassigned: 104,298,625 - 104,298,625 Total Fund Balances $ 119,828,756 $ 22,666,635 $ 1,070,343 $ 122,674,183 $ 521,689,431 $ 777,929,348 .' NOTE 13 — RISK MANAGEMENT The County is exposed to various risks of loss related to tort; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and natural disasters. A self-insurance internal service fund is maintained by the County to administer insurance activities relating to workers' compensation, health and property and casualty, which covers general, property, auto, public official and crime liabilities. The County self-insurance program covers operations of the Board and the constitutional officers, except for the Sheriff. Under these programs, the self-insurance fund provides coverage up to a maximum amount for each claim. The County purchases commercial insurance for claims in excess of coverage provided by the self-insurance fund and for all other covered risks of loss. Claim Type Property and casualty claims Auto liability claims Employee health claims Workers' compensation claims County's Coverage $50,000 - $500,000 ($250,000 named storm deductible; 3% deductible of reported values per damaged building; subject to $5,000,000 deductible cap) $300,000 $1,000,000 $500,000 Excess Carrier's Coverage 50,000 - $75,000,000 $300,001 - $5,000,000 $1,000,001 - Unlimited $500,001 - Statutory Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. All divisions of the County, excluding the Sheriff, participate in this program. Charges to operating departments are based upon amounts believed by management to meet the required annual payouts during the fiscal year and to pay for the estimated operating costs of the programs. For the fiscal year ended September 30, 2020 the operating departments were charged $45,884,960 for workers' compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers' compensation, health and property and casualty of $7,463,357 reported at September 30, 2020 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The estimated liabilities for unpaid losses related to workers' compensation and property and casualty were discounted at 3.5%. It should be noted that the discount rate is an estimate based on the expected rate of return over extended periods. The estimated liabilities for unpaid losses related to health were not discounted as their turnover period is much shorter. Claims loss reserves of $5,429,644 are recorded as current liabilities. The Sheriff participates in the Statewide Florida Sheriff's Self -Insurance Fund for its professional liability insurance. The fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating Sheriff agencies. The Florida Sheriff's Self -Insurance Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident or occurrence and $10,000,000 for an annual aggregate per member. The Sheriff also participates in the Statewide Florida Sheriff's Self -Insurance Fund program for workers' compensation coverage. The Florida Sheriff's Association Workers' Compensation Insurance Trust (FSAWIT) is a limited self-insurance fund providing coverage for the first $500,000 of every claim. Re -insurance is provided through a third party insurer for all claims exceeding $500,000 up to $15,000,000. Settled claims have not exceeded the insurance provided by third party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by Fund management to meet the estimated annual payouts during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Statewide Florida Sheriff's Self -Insurance Fund. The Sheriff cannot be additionally assessed for claims paid by the program. The Sheriff has also established a self -funded employee health plan. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In 2020, there were two covered individuals who had higher deductible amounts because of a history of high claims. Both individuals had deductibles of $350,000. Specific claim excess coverage for these individuals was for claims exceeding $350,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The claims loss reserve for health of $2,901,000 reported at September 30, 2020 was calculated by third party actuaries based upon GASB Statement No. 30, Risk Financing Omnibus, which requires that a liability for claims be reported when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. The entire Sheriff's health claim loss reserve is recorded as a current liability. 70 NOTE 13 — RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2019 and 2020 were as follows for the County and Sheriff self- insurance programs: Balance at September 30, 2018 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2019 Current year claims incurred and changes in estimates Claim payments Balance at September 30, 2020 NOTE 14 — LANDFILL LIABILITY Property and Group Workers' Casualty Health Compensation Total $ 3,785,085 $ 7,007,000 $ 1,343,988 $ 12,136,073 7,013,280 64,969,121 736,218 72,718,619 (8,062,174) (64,261,121) (661,679) (72,984,974) 2,736,191 7,715,000 1,418, 527 11,869,718 2,377,081 65,023,781 43,687 67,444,549 (3,103,445) (65,398,781) (447,684) (68,949,910) $ 2,009, 227 $ 7,340,000 $ 1,014,530 $ 10,364,357 On May 1, 1995, the County entered into a landfill operating agreement with a third party for the privatization of the County's landfill operations. Under the contract, the third party is responsible for the daily operations, capital improvements, closure, postclosure and financial assurance requirements of the active cells within the Naples and Immokalee landfill sites. Collier County is responsible for the postclosure costs relating to portions of the Naples and Immokalee landfill sites. None of the cells that Collier County is responsible for has accepted waste since December 1989. The County is also responsible for staffing and operating the scale house at each site. In accordance with U.S. Environmental Protection Agency rule Solid Waste Disposal and Facility Criteria and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs, a liability has been established representing amounts estimated to be spent on postclosure relating to cells for which Collier County is responsible. The County's estimated liability in connection with the landfills is included in the proprietary funds statement of net position. The landfill liability will be reassessed on an annual basis, and any increase due to inflation, changes in technology or additional postclosure care requirements will be recorded as a current cost. NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS COUNTY'S PLAN DESCRIPTION AND BENEFITS PROVIDED The County provides post employment healthcare benefits for retirees through a single employer defined benefit plan (County's OPEB Plan) and can amend the benefits provisions. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. The Sheriff also provides post employment healthcare benefits under as separate plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County's health insurance plan at the same group rate as for active employees. The Board of County Commissioners and the Tax Collector also subsidize the cost of the post employment healthcare for qualifying retirees and each has the authority to amend benefit provisions. The Board of County Commissioners offers a subsidy for its retirees who have at least 60% of eligible accrued sick leave remaining at the time of retirement and have completed 15 years of continuous service with the Board. In addition, the retiree must retire from the Board, be at least 55 years of age or have completed 30 years of service under the Florida Retirement System (FRS) and be eligible to receive an FRS benefit with no break in time. Such employees are eligible to receive a 50% to 100% subsidy toward the cost of coverage under the active plan. A subsidy is currently provided to 19 retirees. The Tax Collector offers a subsidy of 100% the cost of health care for employees with 10 years of service, between the ages of 54 and 64 and who exchange 800 hours of sick leave at retirement for employees hired prior to June 1, 2015. A subsidy is currently provided to 4 retirees. The County's OPEB Plan is currently being funded on a pay as you go basis. No trust or agency fund has been established for the plan. The plan does not issue a separate financial report. 71 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) PARTICIPANT DATA As of September 30, 2020, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 65 Active employees 2,444 Total employees 2,509 TOTAL OPEB LIABILITY The County's total OPEB liability of $9,817,087 was measured as of September 30, 2020 and was determined by an actuarial valuation as of October 1, 2019. The following table shows the changes in the County's total OPEB liability for the year ended September 30, 2020. Total OPEB Liability Balance, as of October 1, 2019 $ 9,169,502 Changes: Service cost 609,998 Interest on total OPEB liability 190,846 Changes in assumptions or other inputs 321,170 Benefit payments (474,429) Net changes 647,585 Balance, as of September 30, 2020 $ 9,8 77,087 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current 1 % Increase in Description Discount Rate Discount Rate Discount Rate OPEB Plan Discount Rate 0.60% 1.60% 2.60% Total OPEB Liability $ 10,586,169 $ 9,817,087 $ 9,119,922 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the County's total OPEB liability, as well as what the County's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 8,879,923 $ 9,817,087 $ 10,907,889 72 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2020, the County's OPEB expense was $880,973. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ - $ 338,811 Changes in assumptions 955,164 113,877 $ 955,164 $ 452,688 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be amortized over 4.31 years and will be recognized as follows: Year Ending September 30 2021 2022 2023 2024 Thereafter ACTUARIAL METHODS AND ASSUMPTIONS Deferred Outflows of Deferred Inflows Resources of Resources 265,973 $ 157,167 265,973 155,800 265,973 107,972 134,060 31,663 23,185 86 Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 1.6% (Based on the 20 year AA municipal bond rate) 5% 3% None Mortality rates were based on the Pri-2012 Mortality Fully Generational tables using Projection Scale MP-2020. Since the most recent valuation, the following changes have been made: The discount rate was changed from 2.0% to 1.6%. The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2018 to Pri-2012 Mortality Fully Generational using Projection Scale MP-2020. SHERIFF'S PLAN DESCRIPTION AND BENEFITS PROVIDED The Sheriff provides post employment healthcare benefits for retirees through a single employer defined benefit plan (Sheriff's OPEB Plan) and can amend the benefit provisions. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. 73 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) Prior to 2010, the Sheriff subsidized approximately 26% of the cost for both single and family healthcare for its retirees who have 6 years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. Approximately 22% of retirees receive the subsidy. The Sheriff's OPEB Plan is currently being funded on a pay as you go basis. No trust or agency fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2020, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 130 Active employees 1,138 Total employees 1,268 TOTAL OPEB LIABILITY The Sheriff's total OPEB liability of $27,920,433 was measured as of September 30, 2020 and was determined by an actuarial valuation as of October 1, 2020. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2020. Total OPEB Liability Balance, as of October 1, 2019 $ 21,786,049 Changes Service cost 555,065 Interest on total OPEB liability 435,838 Differences between expected and actual experience 5,292,054 Changes in assumptions or other inputs 949,878 Benefit payments (1,098,451) Net changes 6,134,384 Balance, as of September 30, 2020 $ 27,920,433 OPEB LIABILITY DISCOUNT RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1 % Decrease in Current Discount 1 % Increase in Description Discount Rate Rate Discount Rate OPEB Plan Discount Rate 0.60% 1.60% 2.60% Total OPEB Liability $ 30,594,983 $ 27,920,433 $ 25,553,103 OPEB LIABILITY HEALTHCARE TREND RATE SENSITIVITY The following presents the Sheriff's total OPEB liability, as well as what the Sheriff's total OPEB liability would be if it were calculated using a healthcare trend rate one percentage point lower or one percentage point higher than the current healthcare trend rate: 1 % Decrease in 1 % Increase in Healthcare Cost Healthcare Cost Healthcare Cost Description Trend Rate Trend Rate Trend Rate Healthcare Cost Trend Rate 5.00% 6.00% 7.00% Total OPEB Liability $ 25,410,106 $ 27,920,433 $ 30,806,872 74 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2020, the Sheriff's OPEB expense was $1,457,290. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Deferred Outflows of Deferred Inflows Description Resources of Resources Differences Between Expected and Actual Economic Experience $ 6,769,118 $ 49,528 Changes in assumptions 2,883,018 648,216 $ 9,652,136 $ 697,744 Amounts reported as deferred inflows and outflows of resources related to OPEB will be amortized over 7.07 years: Deferred Deferred Year Ending Outflows of Inflows of September 30 Resources Resources 2021 $ 1,486,003 $ 136,740 2022 1,486,003 136,740 2023 1,486,003 136,740 2024 1,486,003 136,740 2025 1,486,003 129,469 Thereafter 2,222,121 21,315 ACTUARIAL METHODS AND ASSUMPTIONS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method Entry Age Actuarial The actuarial assumptions are: Discount rate 1.6% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 6% Salary increase None New employees None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2019. Since the most recent valuation, the following changes have been made: The discount rate was changed from 2.0% to 1.6%. The mortality assumption has been upgraded from RP-2014 Mortality Fully Generational using Projection Scale MP-2017 to RP-2014 Mortality Fully Generational Projection Scale MP-2019. 75 NOTE 15 — OTHER POSTEMPLOYMENT BENEFITS (Continued) SUMMARY The aggregate amount of total OPEB liability, related deferred outflows of resources and deferred inflows of resources and OPEB expense for the County's postemployment benefits plans are summarized below: County's Sheriff's OPEB Plan OPEB Plan Total Total OPEB liability $ 9,817,087 $ 27,920,433 $ 37,737,520 Deferred outflows of resources related to OPEB 955,164 9,652,136 10,607,300 Deferred inflows of resources related to OPEB 452,688 697,744 1,150,432 OPEB expense 880,973 1,457,290 2,338,263 NOTE 16 — SIGNIFICANT CONTINGENCIES LITIGATION The County is involved as defendant or plaintiff in certain litigation and claims arising in the ordinary course of operations. In the opinion of County legal counsel, the range of potential recoveries or liabilities, other than as disclosed here, will not materially affect the financial position of the County. STATE AND FEDERAL GRANTS Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. ARBITRAGE REBATE In accordance with the Tax Reform Act of 1986, any interest earnings on borrowed construction funds in excess of the interest costs incurred are required to be rebated to the federal government. The County Water and Sewer District reported an arbitrage liability of $104,746 as of September 30, 2020. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. Statewide, an estimated 6.5 million Floridians were ordered to evacuate, mostly those living on barrier islands or in coastal areas, in mobile or sub -standard homes and in low lying or flood prone areas. Mandatory evacuations were ordered for portions of Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $107.3 million on recovery efforts and has budgeted an additional $4.7 million in the 2021 fiscal year. In 2020, the County recognized $2.9 million in insurance proceeds and $14.1 million in revenue from the Federal Emergency Management Agency (FEMA). The County continues to expect reimbursements from FEMA. In September 2018, the County filed a suit against the County's property insurance carriers and insurance broker to recover costs incurred for debris removal from roadways and medians under the County's property insurance policy. Claims were originally denied due to the determination that the roadways and medians were not "insurable locations". The County agreed to settle the case with the insurance carriers for $2,425,000 in December 2020. The suit with the insurance broker was settled for $200,000 in February 2021. 76 NOTE 17 — SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2020. The projects include road construction, governmental facilities and utilities improvements. At year end, the County's significant commitments with contractors include the following: Governmental Activities: Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Solid Waste Disposal Other Enterprise Funds Total Construction Category Commitments Human Services $ 1,266,093 Culture and Recreation 26,485,542 Physical Environment 1,045,833 Transportation 8,431,036 Economic Environment 1,173,685 Culture and Recreation 13,877,313 Utilities 75,102,620 Solid Waste 3,509,054 Airports 2,362,061 $ 133,253,237 Encumbrances represent commitments for future expenditures, based on purchase orders or contracts issued, where the goods or services have been ordered but not received. Encumbrance commitments do not include construction contracts, as they are included as contract commitments. Collier County had the following significant encumbrances as of September 30, 2020: Governmental Activities: Bayshore Gateway Community Redevelopment Agency Infrastructure Sales Tax Other Governmental Funds Business -type Activities: Water and Sewer Emergency Medical Services Other Enterprise Funds Internal Service Funds Total NOTE 18 — SUBSEQUENT EVENTS Encumbrance Category Commitments Economic Environment $ 600,000 General Government 1,088,828 Public Safety 4,674,324 General Government 557,659 Physical Environment 2,318,612 Transportation 3,364,596 Economic Environment 636,415 Culture and Recreation 775,311 Utilities 3,995,311 Emergency Medical Services 6,329,681 Collier Area Transit 543,961 Motor Pool Capital Recovery 793,632 $ 25,678,330 On November 3, 2020, Collier County issued the Series 2020A Special Obligation Revenue Bonds in the par amount of $75,100,000. The proceeds of the Series 2020A Bonds will be used to finance the acquisition, construction and equipping of various stormwater capital improvements, aquatic and other park related improvements, refinance prior indebtedness related to land purchased for the County's Paradise Coast Sports Complex and pay issuance costs. The final maturity of the Series 2020A Bonds is October 1, 2045. The bonds are due in installments of $165,000 to $6,045,000 and bear coupon rates of 4.00% and 5.00%, depending upon the maturity. The Series 2020A Special Obligation Revenue Bonds were issued as a competitive public offering, secured by the County's covenant to budget and appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues. On November 3, 2020, Collier County issued the Series 2020B Taxable Special Obligation Revenue Bonds in the par amount of $24,075,000. The proceeds of the Series 2020B Bonds will be used to purchase real property consisting of 967 acres known as the Hussey property, approximately three miles east of Collier Boulevard and directly north of Alligator Alley, and approximately 1,046 acres known as the Camp Keais property located southeast of the intersection of Camp Keais Road and Oil Well Road east of Ave Maria Boulevard and pay issuance costs. The final maturity of the Series 2020B Bonds is October 1, 2029. The bonds are due in installments of $2,275,000 to $2,920,000 and bear coupon rates of 2.00%. The Series 2020B Special Obligation Revenue 77 NOTE 18 - SUBSEQUENT EVENTS (Continued) Bonds were issued as a competitive public offering, secured by the County's covenant to budget and appropriate in its annual budget, by amendment, if necessary, from non -ad valorem revenues. On December 1, 2020 the Collier County Bayshore Gateway Community Redevelopment Agency utilized the optional redemption provisions in the Series 2017 Taxable Note to redeem the outstanding balance of $3,165,830. Priorto redemption, the final maturity of the Series 2017 Taxable Note was September 1, 2026. This early redemption resulted in gross interest savings of $335,051. During fiscal year 2020, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses and communities. Specific to Collier County, COVID-19 may impact various parts of its 2021 operations and financial results including, but not limited to, revenue sources and costs for emergency preparedness. Management believes that Collier County is taking appropriate actions to mitigate the negative impact and in March 2021 the United States government passed the American Rescue Plan Act of 2021, which provides additional funding and assistance to local governments. However, the full impact of COVID-19 and the related Federal assistance is unknown and cannot be reasonably estimated at this time. NOTE 19 — CHANGE IN ACCOUNTING PRINCIPLE During the year ended September 30, 2020, the County adopted GASB Statement No. 87, Leases. This change requires the restatement of the September 30, 2019 net position of the governmental activities as follows: Governmental Activities Net Position, Septembr 30, 2019, as Previously Reported $ 1,749,571,269 Cumulative Effect of Application of GASB 87 7,875 Net Position, September 30, 2019, as Restated $1,749,579,144 78 NIT Ar F,,i';a�v�k : l - Required Supplementary Information 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2020 2019 2018 2017 2016 2015 2014 County's Proportion of the Net Pension Liability 0.794941674% 0.797837050% 0.804668214% 0.796720676% 0.772938545% 0.736106708% 0.703655077% County's Proportionate Share of the Net Pension Liability $ 344,539,437 $ 274,763,972 $ 242,370,237 $ 235,664,630 $195,167,590 $ 95,078,054 $ 42,933,306 County's Covered Payroll * $ 234,174,659 $ 228,455,160 $ 225,786,565 $ 212,195,163 $199,870,915 $195,154,275 $184,577,284 County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 147.13% 120.27% 107.34% 111.06% 97.65% 48.72% 23.26% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 78.85% 82.61% 84.26% 83.89% 84.88% 92.00% 96.09% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2014 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2020 2019 2018 2017 2016 2015 2014 Contractually Required Contribution $ 27,741,964 $ 25,202,730 $ 23,401,059 $ 20,299,090 $ 20,5 33,824 $ 17,8 00,147 $ 17,287,796 Contributions in Relation to the Contractually Required Contribution (27,741,964) (25,202,730) (23,401,059) (20,299,090) (20,563,824) (17,830,147) (17,287,796) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ County's Covered Payroll - Fiscal Year * $240,018,783 $230,500,331 $226,283,207 $216,521,253 $206,179,415 $193,543,352 $185,505,694 Contributions as a Percentage of Covered Payroll 11.56% 10.93% 10.34% 9.38% 9.97% 9.21 % 9.32% *Covered Payroll- Fiscal Year consists of pensionable wages calculated for the respective fiscal year, restated for periods 2014 to 2017 pursuantto GASB No. 82, Pension Issues. SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2020 2019 2018 2017 2016 2015 2014 County's Proportion of the Net Pension Liability 0.673478223% 0.683003525% 0.690065185% 0.665383863% 0.645620406% 0.642983194% 0.621385755% County's Proportionate Share of the Net Pension Liability $ 82,230,597 $ 76,421,260 $ 73,037,274 $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 58,101,084 County's Covered Payroll * $ 234,174,659 $ 228,455,160 $ 225,786,565 $ 212,195,163 $199,870,915 $195,154,275 $184,577,284 County's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 35.12% 33.45% 32.35% 33.53% 37.65% 33.60% 31.48% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 3.00% 2.63% 2.15% 1.64% 0.97% 0.50% 0.99% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS RETIREE HEALTH INSURANCE SUBSIDY PROGRAM Last Ten Fiscal Years 2020 2019 2018 2017 2016 2015 2014 Contractually Required Contribution $ 3,982,772 $ 3,792,652 $ 3,750,438 $ 3,593,353 $ 3,415,537 $ 2,614,704 $ 2,131,155 Contributions in Relation to the Contractually Required Contribution (3,982,772) (3,792,652) (3,750,438) (3,593,353) (3,415,537) (2,614,704) (2,131,155) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ County's Covered Payroll - Fiscal Year* $ 240,018,783 $ 230,500,331 $ 226,283,207 $ 216,521,253 $ 206,179,415 $193,543,352 $185,505,694 Contributions as a Percentage of Covered Payroll 1.66% 1.65% 1.66% 1.66% 1.66% 1.35% 1.15% * Covered Payroll - Fiscal Year consists of pensionable wages calculated pursuant to GASB No.82, Pension Issues. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 81 COLLIER COUNTY, FLORIDA SCHEDULE OF CHANGES IN THE COLLIER COUNTY TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years Board of County Commissioners and Constitutional Officers Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending Covered -employee payroll Total OPEB liability as a percentage of covered payroll 2020 2019 2018 2017 $ 609,998 $ 438,933 $ 491,865 $ 464,531 190,846 287,048 252,345 248,849 (1,190) - (8,258) 322,360 387,596 (221,309) (474,429) (674,797) (625,275) (589,882) 647,585 438,780 (102,374) 115,240 9,169,502 8,730,722 8,833,096 8,717,856 $ 9,817,087 $ 9,1 99,502 $ 8,7 00,722 $ 8,8 33,096 $135,688,734 $132,769,448 $123,441,030 $121,574,778 7.24°i 6.91 °i 7.07°i 7.27°i Notes to the Schedule Changes in Assumptions: Change in the discount rate of 2.0% as of September 30, 2019 to 1.6% as of September 30, 2020. The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2018 to Pri- 2012 Mortality Fully Generational using Projection Scale MP-2020. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. Sheriff Total OPEB liability Service Cost Interest Changes of benefit terms Differences between expected and actual experience Changes of assumptions or other inputs Benefit payments Net change in total OPEB liability Total OPEB liability, beginning Total OPEB liability, ending Covered -employee payroll Total OPEB liability as a percentage of covered payroll 2020 2019 2018 2017 $ 555,065 $ 485,365 $ 520,082 $ 491,420 435,838 631,825 503,525 502,621 5,292,054 - 2,048,462 (83,607) 949,878 2,250,569 (898,977) (1,098,451) (1,074,207) (941,061) (871,353) 6,134,384 2,293,552 1,232,031 39,081 21,786,049 19,492,497 18,260,466 18,221,385 $ 27,920,433 $ 21,786,049 $ 19,492,497 $ 18,260,466 $ 83,944,157 $ 81,378,975 $ 80,473,682 $ 91,192,818 33.26 i 26.77 i 24.22 i 20.02 i Notes to the Schedule Changes in Assumptions: Change in the discount rate of 2.0 as of September 30, 2019 to 1.6% as of September 30, 2020. The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2017 to RP Mortality Fully Generational Projection Scale MP-2019. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available. 82 Combining & Individual Fund Financial Statements & Other Supplemental Information 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds ROAD DISTRICTS — To account for taxes levied and expenditures to carry on all work on roads and bridges in the County except that provided for in capital project funds. UNINCORPORATED AREA MUNICIPAL SERVICES TAXING DISTRICT — To account for revenues derived from and expanded for the benefit of the unincorporated areas of the County. COMMUNITY DEVELOPMENT — To account for building permit and development fees to support licensing, permitting and inspection services. WATER MANAGEMENT AND POLLUTION CONTROL — To account for taxes levied County -wide to provide water resource management and water pollution control. PELICAN BAY — To account for taxes levied in the Pelican Bay development to provide water resource management and beautification services. STORMWATER UTILITY — To account for the accumulation of resources and expenditures related to the management of facilities and services for drainage and flood protection County -wide. GRANTS AND SHARED REVENUES — To account for the revenues received from federal, state and local grants. IMPROVEMENT DISTRICTS — To account for taxes levied within municipal service taxing districts to provide for specified improvements and/or the maintenance of such improvements. FIRE CONTROL DISTRICTS — To account for taxes levied within municipal service taxing districts for fire prevention and control. LIGHTING DISTRICTS — To account for taxes levied within municipal service taxing district for street lighting. 911 ENHANCEMENT FEE — To account for fees levied on each telephone access line in the County for the enhancement of the 911 emergency telephone system. TOURIST DEVELOPMENT — To account for the 5% tourist development tax. STATE HOUSING INITIATIVE PARTNERSHIP — To account for state revenues received to provide affordable residential housing for very low to moderate income persons and those who have special housing needs. 800 MHZ INTERGOVERNMENTAL RADIO COMMUNICATIONS PROGRAM FUND — To account for moving traffic violation surcharges received to fund the County's intergovernmental radio communications program. STATE COURT ADMINISTRATION — To account for County monies used to fund the operation of the court system. CONFISCATED PROPERTY — To account for the accumulation and expenditure of proceeds from the sale of property confiscated by the Sheriff. GAC LAND SALES, ROADS AND CANALS — To account for principal and settlement fees received from a 1977 settlement with GAC Properties, Inc., and interest thereon to be expended for the restoration and maintenance of roads, facilities and drainage improvements in the Golden Gate Estates area. UTILITY FEE — To account for fees to be used to effectively and efficiently regulate private water and wastewater utilities operating within the unincorporated areas of Collier County and the City of Marco Island. CONSERVATION COLLIER — To account for the acquisition and management of environmentally sensitive lands. COURT INFORMATION TECHNOLOGY — To account for the accumulation of resources to enhance and increase access to court information. COURT SERVICES — To account for the accumulation of revenues associated with the function of the local court system. UNIVERSITY EXTENSION — To account for fund accumulation to meet the educational goals of the Collier County OF/IFAS extension. COURT FACILITIES FEE — To account for the accumulation of resources to improve court facilities. AFFORDABLE HOUSING — To account for fees to be used to provide for affordable housing related projects. ECONOMIC AND INNOVATION ZONE — To account for the accumulation of resources for economic development in accordance with an approved tax increment financing plan. OTHER COURT SPECIAL REVENUE FUNDS — To account for the statutory surcharge on recording documents to be paid to the Clerk of the Circuit Court for modernization. ,AM OTHER PUBLIC SAFETY SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the Sheriff's Inmate Welfare, Federal Equitable Sharing and other statutory revenues paid to the Sheriff to fund various inmate welfare, crime prevention and training programs. OTHER SPECIAL REVENUE FUNDS — To account for the accumulation of resources for the following programs: Miscellaneous Florida Statutes Fee Collections Adoption Awareness Teen Court Animal Control Public Library Law Library Freedom Memorial County Drug Abuse Permanent Funds Euclid and Lakeland Assessment Legal Aid Society Law Enforcement Training Domestic Violence Juvenile Assessment Center Driver Education Crime Prevention RESOURCE RECOVERY PARK ENDOWMENT — To account for the permanent endowment established for the benefit of the County's land conservation program. PEPPER RANCH CONSERVATION BANK — To account for the permanent endowment established for the benefit of establishing and maintaining a panther habitat land conservation bank. Debt Service Funds POOLED COMMERCIAL PAPER PROGRAM — To account for the accumulation of resources and payment of interest and principal on variable rate debt incurred for the acquisition of land for the County's amateur sports park. GAS TAX REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2012 Gas Tax Refunding Revenue Bonds and Series 2014 Gas Tax Refunding Revenue Bond (bank term loan) incurred in the refinancing of Gas Tax Revenue Bonds. COMMUNITY REDEVELOPMENT TAXABLE NOTE — To account for the accumulation of resources and payment of interest and principal on taxable long-term debt incurred for the acquisition of land in the Bayshore/Gateway Community Redevelopment Agency. FOREST LAKES LIMITED GENERAL OBLIGATION BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2007 Forest Lakes Limited General Obligation Bonds debt incurred to finance the cost of certain roadway lighting, drainage and restoration in the Forest Lakes Municipal Services Taxing Unit. SPECIAL OBLIGATION REFUNDING REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2010, 2010B, 2011 and 2013 Special Obligation Refunding Revenue Bonds and the Series 2017 Special Obligation Refunding Revenue Note (bank term loan) incurred in the refinancing of variable rate commercial paper loans and revenue bonds. Also used to account for the accumulation of resources and payment of interest and principal on the Series 2019 Taxable Special Obligation Revenue Note (bank term loan) used to purchase the Golden Gate Golf Course. TOURIST DEVELOPMENT TAX REVENUE BONDS — To account for the accumulation of resources and payment of interest and principal on the Series 2018 Tourist Development Tax Revenue Bonds incurred to pay the cost of the development, acquisition, construction and equipping of a regional tournament caliber amateur sports complex. OTHER DEBT SERVICE — To account for the accumulation of resources and payment of interest and principal on special assessment debt incurred in the Naples Park area. Capital Project Funds COUNTY -WIDE CAPITAL IMPROVEMENTS — To account for capital projects, designated by the Board of County Commissioners, to be funded by a County -wide one third mil levy. PARKS IMPROVEMENTS — To account for the expenditure of funds raised specifically for improvements to parks. Projects include land acquisition, design, construction and equipping of certain Community Park sites in the unincorporated areas of the County. Primary funding is ad valorem taxes. :. COUNTY -WIDE LIBRARY IMPACT FEES — To account for the receipt and expenditure of library impact fees collected from all qualifying new construction. These impact fees must be used for acquisition of County -wide library facilities. CORRECTIONAL FACILITIES IMPACT FEES — To account for the receipt and expenditure of correctional facilities impact fees collected from all qualifying new construction. These impact fees must be used for the acquisition/construction of correctional facilities. EMERGENCY MEDICAL SERVICES IMPACT FEES — To account for the receipt and expenditure of emergency medical service impact fees collected from all qualifying new construction. These impact fees must be used for acquisition/construction of emergency service facilities. WATER MANAGEMENT — To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is ad valorem taxes. PELICAN BAY CAPITAL IMPROVEMENTS — To account for the receipt and expenditure of funds raised specifically for water management purposes and the restoration of the Clam Bay estuary in the Pelican Bay Development. Primary funding is a special assessment. PARKS IMPACT DISTRICTS — To account for the receipt and expenditure of parks impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of park facilities. ROAD IMPACT DISTRICTS — To account for the receipt and expenditure of road impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition/construction of roads. ROAD CONSTRUCTION — To account for the receipt and expenditure of gas taxes. Projects include, but are not limited to, right- of-way acquisition, design and construction of various transportation improvements. GOVERNMENT FACILITIES IMPACT FEES — To account for the receipt and expenditure of government facilities impact fees collected from qualifying new construction. The impact fees must be used for the acquisition and construction of government facilities. LAW ENFORCEMENT IMPACT FEES — To account for the receipt and expenditure of law enforcement impact fees collected from all qualifying new construction. The impact fees must be used for the acquisition and construction of law enforcement related facilities. ALL TERRAIN VEHICLE PARK — To account for the receipt and expenditure of funds for the creation of an All Terrain Vehicle park. AMATEUR SPORTS COMPLEX — To account for major capital expenditures related to the new Amateur Sports Complex. OTHER CAPITAL PROJECTS — To account for major capital expenditure financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. Al COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2020 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Districts Area MSTD Development Control Bay Utility ASSETS Cash and investments $ 2,793,572 $ 13,399,432 $ 38,130,449 $ 1,630,462 $ 5,135,112 $ 1,987,348 Cash with fiscal agent - - - - - - Receivables: Interest 4,937 19,238 40,904 1,866 5,652 2,826 Trade, net 3,000 135,310 4,660 262 2 - Notes - - - - - Impact Fee Special assessments - - Leases 20,208 5,967,054 - - - Due from other funds 678,300 439,401 9,553 16,878 25,218 Due from other governments - 789,291 393,482 10,377 - Deposits - - - Inventory for resale - - - - Inventory 957,241 25,033 - 115,789 35,114 Advances to other funds - 364,802 1,065,758 - - Prepaid costs - - 381 - Total assets $ 4,457,258 $ 21,139,561 $ 39,645,187 $ 1,775,634 $ 5,165,984 $ 2,025,288 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 275,158 $ 1,168,051 $ 164,769 $ 5,614 $ 112,764 $ 216,321 Wages payable 596,317 658,633 889,526 78,169 78,225 86,250 Due to other funds 23,103 2,447 - - - - Due to other governments 61 3,480 2,543,268 Unearned revenues - 6,696 - Refundable deposits 2,127 61,785 Retainage payable - - Advances from other funds - - - - - - Total liabilities 894,639 1,841,434 3,659,348 83,783 190,989 302,571 Deferred inflows of resources: Unavailable revenue - - - - - - Related to leases 20,014 5,798,560 Total deferred inflows of resources 20,014 5,798,560 Fund balances Nonspendable 957,241 25,033 381 115,789 35,114 Restricted 2,585,364 - 35,985,458 - - - Committed - 13,474,534 - 1,576,062 4,974,995 - Assigned - - - - - 1,687,603 Total fund balances 3,542,605 13,499,567 35,985,839 1,691,851 4,974,995 1,722,717 Total liabilities, deferred inflows of resources and fund balances $ 4,457,258 $ 21,139,561 $ 39,645,187 $ 1,775,634 $ 5,165,984 $ 2,025,288 See accompanying independent auditors' report 88 Special Revenue Funds State Grants and Fire 911 Housing Shared Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Revenue Districts Districts Districts Fee Development Partnership ICRP Fund Administration $ 23,255,960 $ 18,928,035 $ 1,198,032 $ 509,761 $ 2,943,853 $ 85,925,317 $ 2,745,350 $ 584,589 $ 244,918 15,753 18,971 1,208 642 2,780 85,766 2,158 674 302 127,521 598 1 121 - 2,273,378 2,424 21,241 46,357 - - - - - 321,061 - - - - - - 559,804 211,033 27,219 7,750 4,648 - - 3,184,060 - - - 1,968,916 2,710 - - - $ 26,794,327 $ 18,974,823 $ 1,206,991 $ 515,172 $ 2,946,633 $ 90,256,087 $ 3,070,993 $ 1,166,308 $ 291,577 $ 1,622,058 $ 1,507,466 $ $ 42,954 $ 70,307 $ 1,891,852 $ 150,067 $ 136,421 $ 13,518 192,538 21,748 - - 121,311 - 8,788 89,115 1,719,319 1,000 619 1,099,747 23,369 - - 7,518 7 657,425 - 192,362 - 14,395,149 - - - 1,169,436 - 4,120 - - 32,271 76,368 - 67,178 - 556,886 268,100 - - - - - 17,968,853 2,167,595 926,144 42,954 1,170,054 2,296,072 1,319,503 145,209 102,633 542,861 542,861 - - 2,710 - 8,825,474 - - - 1,776,579 87,957,305 1,751,490 - - - 16,807,228 280,847 472,218 - - - 478,238 188,944 8,825,474 16,807,228 280,847 472,218 1,776,579 87,960,015 1,751,490 478,238 188,944 $ 26, 994,327 $ 18,974,823 $ 1,206,991 $ 515,172 $ 2,946,633 $ 90,256,087 $ 3,070,993 $ 1,166,308 $ 291,577 ASSETS Cash and investments Cash with fiscal agent Receivables: Interest Trade, net Notes Impact Fee Special assessments Leases Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable Wages payable Due to other funds Due to other governments Unearned revenues Refundable deposits Retainage payable Advances from other funds Total liabilities Deferred inflows of resources: Unavailable revenue Related to leases Total deferred inflows of resources Fund balances: Nonspendable Restricted Committed Assigned Total fund balances Total liabilities, deferred inflows of resources and fund balances See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2020 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services $ 525,858 $ 694,421 $ 1,264,570 $ 29,185,167 $ 1,046,876 $ 1,377,579 120 683 1,177 29,572 1,114 - - 21,813 - 103,950 2 3,489 80 26,420 229,733 $ 525,978 $ 924, 337 $ 1,291,049 $ 29,214,821 $ 1,151,940 $ 1,403,999 - 85,599 38,265 8,223 10,337 13,795 4,964 130,897 29,004 1,111,879 - 153,000 10,337 99,394 72,233 1,403,999 525,978 924,837 - 29,115,427 1,079,707 - - 1,280,712 - - 525,978 924,837 1,280,712 29,115,427 1,079,707 - $ 525,978 $ 924, 337 $ 1,291,049 $ 29,214,821 $ 1,151,940 $ 1,403,999 90 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Extension Fee Housing Zones Funds Funds Funds Funds $ 67,041 $ 7,200,155 $ 533,873 $ 1,464,718 $ 5,671,252 $ 3,823,677 $ 1,104,887 $ 253,372,264 71 6,940 549 1,472 1,261 1,166 247,802 - 66,578 - - 65,235 20,018 2,892,469 - - - 321,061 6,547,066 - 1,420,002 40 6,376,155 229,733 1,133,177 1,430,560 - - - - - - - 3,091 $ 67,112 $ 7,273,673 $ 534,422 $ 1,466,190 $ 5,671,252 $ 3,890,173 $ 1,126,111 $ 273,973,380 $ 954 $ $ 14,637 $ $ 479 $ 6,404 $ 48,186 $ 7,580,067 - 2,590 23,781 - 323 3,007,307 - - 54,722 - 2,924,326 - 66 4,545,070 - 15,724,281 68,032 175,817 824,986 954 17,227 24,260 61,126 48,575 34,849,886 6,361,435 6,361,435 - - - - - 1,136,268 66,158 7,273,673 - - 5,646,992 3,829,047 193,110 187,536,599 - - 517,195 1,466,190 - - - 41,517,163 - - - - - - 884,426 2,572,029 66,158 7,273,673 517,195 1,466,190 5,646,992 3,829,047 1,077,536 232,762,059 $ 67,112 $ 7,273,673 $ 534,422 $ 1,466,190 $ 5,671,252 $ 3,890,173 $ 1,126,111 $ 273,973,380 91 ASSETS Cash and investments Cash with fiscal agent Receivables: Interest Trade, net Notes Impact Fee Special assessments Leases Due from other funds Due from other governments Deposits Inventory for resale Inventory Advances to other funds Prepaid costs Total assets Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2020 Permanent Funds Debt Service Funds Forest Lakes Resource Pepper Pooled Limited Recovery Ranch Total Commercial Gas Tax Community General Park Conservation Permanent Paper Revenue Redevelopment Obligation Endowment Bank Funds Program Bonds Taxable Note Bonds $ 1,821,884 $ 965,774 $ 2,787,658 $ 148,561 $ 778,916 $ 248,029 $ 602,790 - - - - - 318,783 - 1,781 958 2,739 38 2,524 56 590 - - 3,173 16,111 313,560 - $ 1, 223,665 $ 666,732 $ 2, 990,397 $ 164,710 $ 1, 995,000 $ 566,868 $ 606,553 Accounts payable $ $ $ $ $ $ $ Wages payable Due to other funds Due to other governments 667 667 Unearned revenues - - Refundable deposits Retainage payable Advances from other funds - - Total liabilities 667 667 Deferred inflows of resources: Unavailable revenue - - Related to leases Total deferred inflows of resources - - - Fund balances: Nonspendable 1,582,800 770,762 2,353,562 Restricted 240,865 195,303 436,168 164,710 1,095,000 566,868 606,553 Committed - - - - - - - Assigned - - - - - - - Total fund balances 1,823,665 966,065 2,789,730 164,710 1,095,000 566,868 606,553 Total liabilities, deferred inflows of resources and fund balances $ 1, 223,665 $ 666,732 $ 2, 990,397 $ 164,710 $ 1, 995,000 $ 566,868 $ 606,553 See accompanying independent auditors' report 92 Debt Service Funds Capital Project Funds Tourist Special Development Total Emergency Obligation Tax Other Debt County -Wide Count -Wide Correctional Medical Revenue Revenue Debt Service Capital Parks Library Facilities Services Bonds Bonds Service Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ 99,332 $ 2,956,190 $ $ 4,833,818 $ 15,165,757 $ 7,926,230 $ 769,654 $ 1,078,392 $ 1,616,419 10,458,852 - 10,777,635 - - - - - 1,843 1,840 6,891 14,787 8,476 926 1,985 2,008 - - - - 7,980 - - - 200,062 115,470 67,037 3,173 27,340 105 320,700 1,059,900 162,600 329,671 4,280,803 127,182 10,702 21,019 5,918 $ 10, 660,027 $ 2,958,030 $ $ 15, 551,188 $ 19,488,687 $ 8,069,973 $ 1,302,044 $ 2,276,766 $ 1,853,982 $ $ $ $ $ 888,916 $ 527,041 $ $ $ 35,183 8,567,500 8,567,500 260,691 - - 119,123 201,379 51,738 101,376 8,567,500 8,567,500 1,470,109 578,779 - - 136,559 - - - - 200,062 115,470 67,037 200,062 115,470 67,037 1,992,527 2,958,030 7,383,688 1,101,982 2,161,296 1,650,386 18,018,578 7,491,194 - - - 1,992,527 2,958,030 7,383,688 18,018,578 7,491,194 1,101,982 2,161,296 1,650,386 $ 10,560,027 $ 2,958,030 $ $ 15,951,188 $ 19,488,687 $ 8,069,973 $ 1,302,044 $ 2,276,766 $ 1,853,982 93 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2020 Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees ASSETS Cash and investments $ 8,258,216 $ 4,030,544 $ 37,690,552 $ 109,487,294 $ 50,905,469 $ 2,019,850 Cash with fiscal agent - - - - - - Receivables: Interest 4,849 4,269 37,188 104,266 53,069 4,175 Trade, net - - - - - - Notes - - - Impact Fee 1,444,184 3,911,809 280,508 Special assessments - - - Leases - - - Due from other funds 307,092 4,482 1,950,715 - 1,058,904 2,176,000 Due from other governments 37,948 181,492 87,054 367,210 3,024,596 38,998 Deposits - - 1,250 - - - Inventory for resale - Inventory Advances to other funds - Prepaid costs - - - - - Total assets $ 8,608,105 $ 4,220,787 $ 41,210,943 $ 113,870,579 $ 55,042,038 $ 4,519,531 Liabilities, Deferred Inflows of Resources And Fund Balances Liabilities Accounts payable $ 1,603,117 $ 458,136 $ 238,905 $ 1,293,918 $ 2,404,772 $ Wages payable - - - - - Due to other funds - Due to other governments 267 Unearned revenues - Refundable deposits - - - - - Retainage payable 534,906 112,883 32,984 744,619 410,723 Advances from other funds - - - - - Total liabilities 2,138,023 571,019 271,889 2,038,537 2,815,762 Deferred inflows of resources: Unavailable revenue - - 1,444,184 3,911,809 - 280,508 Related to leases - - - Total deferred inflows of resources 1,444,184 3,911,809 280,508 Fund balances: Nonspendable - - - - Restricted 39,494,870 107,920,233 52,226,276 4,239,023 Committed - - - - Assigned 6,470,082 3,649,768 - - - - Total fund balances 6,470,082 3,649,768 39,494,870 107,920,233 52,226,276 4,239,023 Total liabilities, deferred inflows of resources and fund balances $ 8,608,105 $ 4,220,787 $ 41,210,943 $ 113,870,579 $ 55,042,038 $ 4,519,531 See accompanying independent auditors' report 94 Capital Project Funds Total Total Law All Terrain Amateur Other Capital Nonmajor Enforcement Vehicle Sports Capital Project Governmental Impact Fees Park Complex Projects Funds Funds $ 2,085,626 $ 3,178,369 $ 29,734,813 $ 11,369,851 $ 285,317,036 $ 546,310,776 - - - - - 10,777,635 2,206 3,092 33,935 7,067 282,298 539,730 - - - - 7,980 2,900,449 - - 321,061 126,573 - 6,145,643 6,145,643 - 1,405 1,405 1,405 - - - 6,547,066 393,500 696 7,462,034 8,885,209 - 1,593 8,184,515 14,890,341 - 1,250 1,250 - 229,733 1,133,177 1,430,560 - - - - 3,091 $ 2,607,905 $ 3,181,461 $ 29,768,748 $ 11,380,612 $ 307,402,161 $ 600,117,126 $ $ $ 8,857,926 $ 83,899 $ 16,391,813 $ 23,971,880 - - - 3,007,307 260,691 11,752,517 119,390 4,665,127 - 15,724,281 - - - 68,032 3,529,173 1,625 5,721,406 5,897,223 - 9,264 9,264 834,250 12,387,099 94,788 22,502,564 65,920,617 126,573 6,145,643 6,145,643 - - 6,361,435 126,573 6,145,643 12,507,078 - - - - 3,489,830 2,481,332 17,381,649 55,580 228,712,627 424,069,082 - - - - 41,517,163 3,181,461 - 11,230,244 50,041,327 52,613,356 2,481,332 3,181,461 17,381,649 11,285,824 278,753,954 521,689,431 $ 2,607,905 $ 3,181,461 $ 29,768,748 $ 11,380,612 $ 307,402,161 $ 600,117,126 95 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 IRevenue Funds Water Management Road Unincorporated Community and Pollution Pelican Stormwater Districts Area MSTD Development Control Bay Utility Revenues: Taxes $ $ 49,114,908 $ - $ 2,632,338 $ 585,501 $ Licenses, permits and impact fees 42,533 25,827,873 - - Intergovernmental 2,147,631 266,958 154,215 99,728 881 Charges for services 306,606 1,816,687 3,364,487 342,655 - 62,500 Fines and forfeitures - 211,023 - - - - Interest income 59,438 572,985 679,737 33,457 94,805 34,314 Special assessments - - - - 4,668,657 - Miscellaneous 59,978 482,005 51,453 - 4,499 - Total revenues 2,573,653 52,507,099 30,077,765 3,108,178 5,354,343 96,814 Expenditures: Current: General government 6,083,263 8,391,251 Public safety 4,338,215 19,517,096 - - - Physical environment - 591,913 1,289,841 2,466,960 908,832 4,814,814 Transportation 21,659,521 14,775,644 351,698 - 3,220,194 - Economic environment - 107,286 - - Human services - Culture and recreation - 12,670,541 - Debt service Principal 154 7,672 25,106 Interest 146 176 669 Fiscal charges - - - - - - Capital outlay 300,197 988,744 246,428 67,904 170,054 153,454 Total expenditures 21,960,018 39,563,454 29,796,314 2,534,864 4,324,855 4,968,268 Excess (deficit) of revenues over (under) expenditures (19,386,365) 12,943,645 281,451 573,314 1,029,488 (4,871,454) Other financing sources (uses): Leases - - - - - Sale of capital assets 16,695 108 5,570 696 26,675 - Insurance proceeds 153,641 53,985 4,469 - 2,400 185 Transfers in 20,943,659 1,703,253 934,701 59,378 81,196 7,505,600 Transfers out (1,228,800) (16,464,528) (5,334,800) (187,792) (206,950) (1,279,100) Total other financing sources (uses) 19,885,195 (14,707,182) (4,390,060) (127,718) (96,679) 6,226,685 Net change in fund balances 498,830 (1,763,537) (4,108,609) 445,596 932,809 1,355,231 Fund balances at beginning of year 3,043,775 15,263,104 40,094,448 1,246,255 4,042,186 367,486 Fund balances at end of year $ 3,542,605 $ 13,499,567 $ 35,985,839 $ 1,691,851 $ 4,974,995 $ 1,722,717 See accompanying independent auditors' report •R Revenue Funds State Grants and Fire 911 Housing Shared Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Revenue Districts Districts Districts Fee Development Partnership ICRP Fund Administration $ $ 4,825,693 $ 1,311,423 $ 848,683 $ $ 26,062,312 $ $ $ 15,406,442 8,598 - 1,925,352 3,154,943 382,654 - - 100,263 8,265 - 13,689 - 312,201 109,200 - - - - - - - 511,112 117,383 304,792 19,633 11,171 43,199 1,304,674 47,045 19,636 4,391 1,903,670 24,429 - 10,012 - 20,528 367,347 148,221 20,320 17,427,495 5,263,775 1,339,321 869,866 1,968,551 30,556,146 797,046 480,058 645,023 2,074,953 - - - 1,229,498 1,233,065 - 1,837,751 1,893,102 - 955,739 1,527,629 723,080 978,823 - - 3,814,936 - - 151,791 1,049,846 728,607 - - 2,199,989 - - 2,985,035 6,858,827 - - 307,023 1,208,128 13,919,952 20,670 - 26,064 197,826 205 2,111 3,638 40,070 3,330,758 2,041,406 - - 877,853 7,242,885 1,170 96,441 4,497 16,900,361 5,280,314 1,867,453 728,607 2,770,955 24,977,773 2,986,205 1,290,076 2,761,624 527,134 (16,539) (528,132) 141,259 (802,404) 5,578,373 (2,189,159) (810,018) (2,116,601) 101,370 - - 837 26 7,550 - - 75,901 - - 7,040 2,636 - 1,897,296 600,499 572,850 4,648 3,187,200 1,030,400 2,455,400 - (683,834) (39,979) (24,464) (5,224,346) (31,572) - (245,900) 1,999,503 (7,408) 532,871 (19,816) (2,022,556) (31,572) 1,033,036 2,209,500 2,526,637 (23,947) 4,739 121,443 (802,404) 3,555,817 (2,220,731) 223,018 92,899 6,298,837 16,831,175 276,108 350,775 2,578,983 84,404,198 3,972,221 255,220 96,045 $ 8,825,474 $ 16,807,228 $ 280,847 $ 472,218 $ 1,776,579 $ 87,960,015 $ 1,751,490 $ 478,238 $ 188,944 97 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes $ $ $ 86,754 $ 755 $ $ Licenses, permits and impact fees - 5,350 Intergovernmental 3,489 2,073 446,545 Charges for services 100,000 471 1,078,064 6,475,135 Fines and forfeitures 450,000 - - - - Interest income 1,534 12,021 19,495 486,438 17,734 30,986 Special assessments - - - - - - Miscellaneous - - - 1,730 - - Total revenues 451,534 12,021 209,738 496,817 1,095,798 6,952,666 Expenditures: Current: General government - - - - 979,696 6,952,666 Public safety 11,500 - - 27,973 - Physical environment - 244,556 765,295 - Transportation - - Economic environment - Human services - 41,307 Culture and recreation 105,002 - Debt service Principal - Interest Fiscal charges - - Capital outlay - 1,649,716 46,210 - Total expenditures 11,500 105,002 244,556 2,415,011 1,095,186 6,952,666 Excess (deficit) of revenues over (under) expenditures 440,034 (92,981) (34,818) (1,918,194) 612 - Other financing sources (uses): Leases - - - Sale of capital assets 3,100 Insurance proceeds - Transfers in 2 Transfers out - Total other financing sources (uses) 3,102 Net change in fund balances 440,034 (92,981) (34,818) (1,915,092) 612 Fund balances at beginning of year 85,944 1,017,818 1,315,530 31,030,519 1,079,095 Fund balances at end of year $ 525,978 $ 924,837 $ 1,280,712 $ 29,115,427 $ 1,079,707 $ See accompanying independent auditors' report 98 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Revenue Revenue Revenue Extension Fee Housing Zone Funds Funds Funds Funds $ $ $ $ 1,349,000 $ $ $ - $ 86,817,367 - 42,260 25,918,016 - 23,999,509 6,616 5,389 1,366,682 634,901 240,778 16,344,589 - 854,099 - - - 70,976 37,795 2,135,005 1,292 109,645 7,832 18,191 32,142 19,713 20,329 4,124,012 - - - - - - - 4,668,657 - - - - - 56,532 118,634 3,269,358 7,908 963,744 13,221 1,367,191 1,398,824 782,122 459,796 167,276,513 528,722 442,370 - 177,412 26,859,831 - - - 455,606 151,900 31,949,576 39,446 - - 16,638,496 - - - 41,937,301 664,963 113,271 6,070,544 - - 370,639 7,270,773 46,646 28,257,292 277,492 47,015 33,909 50,174 17,301,800 39,446 562,631 664,963 113,271 442,370 455,606 796,771 176,610,120 (31,538) 401,113 (651,742) 1,253,920 956,454 326,516 (336,975) (9,333,607) 101,370 61,257 - - 300,257 591,990 259,000 41,827,072 - (690,602) - (31,642,667) - 591,990 - - (690,602) 259,000 10,647,289 (31,538) 401,113 (59,752) 1,253,920 956,454 (364,086) (77,975) 1,313,682 97,696 6,872,560 576,947 212,270 4,690,538 4,193,133 1,155,511 231,448,377 $ 66,158 $ 7,273,673 $ 517,195 $ 1,466,190 $ 5,646,992 $ 3,829,047 $ 1,077,536 $ 232,762,059 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Permanent Funds Debt Service Funds Pooled Resource Pepper Ranch Total Commercial Gas Tax Community Forest Lakes Recovery Park Conservation Permanent Paper Revenue Redevelopment Limited General Endowment Bank Funds Program Bonds Taxable Note Obligation Bonds Revenues: Taxes $ $ S S $ $ $ 526,548 Licenses, permits and impact fees - Intergovernmental 1,864,211 Charges for services 7,875 559,298 567,173 - Fines and forfeitures - - - - - - Interest income 28,315 9,752 38,067 123 52,915 1,498 10,233 Special assessments - - - - - - - Miscellaneous 250 41,200 41,450 - - - - Total revenues 36,440 610,250 646,690 123 1,917,126 1,498 536,781 Expenditures: Current: General government - - - - - - - Public safety - - - Physical environment 9,575 37,950 47,525 Transportation - - - Economic environment Human services Culture and recreation - - - - Debt service Principal 400,000 11,170,000 850,556 495,000 Interest 228,547 2,178,195 136,290 55,569 Fiscal charges 840 1,681 - 2,929 Capital outlay - - - - Total expenditures 9,575 37,950 47,525 629,387 13,349,876 986,846 553,498 Excess (deficit) of revenues over (under) expenditures 26,865 572,300 599,165 (629,264) (11,432,750) (985,348) (16,717) Other financing sources (uses): Leases - - - Sale of capital assets Insurance proceeds - - - - Transfers in 775,900 11,262,400 1,198,500 3,173 Transfers out - - - (16,325) Total other financing sources (uses) 775,900 11,262,400 1,198,500 (13,152) Net change in fund balances 26,865 572,300 599,165 146,636 (170,350) 213,152 (29,869) Fund balances at beginning of year 1,796,800 393,765 2,190,565 18,074 1,265,350 353,716 636,422 Fund balances at end of year $ 1,823,665 $ 966,065 $ 2, 889,730 $ 664,710 $ 1,0 55,000 $ 566,868 $ 606,553 See accompanying independent auditors' report 100 Debt Service Funds Capital Project Funds Tourist Total Emergency Special Development Debt County -Wide Count -Wide Correctional Medical Obligation Tax Service Capital Parks Library Facilities Services Revenue Bonds Revenue Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees $ $ $ 526,548 $ - $ - $ - $ - $ - - 528,366 1,067,681 1,893,386 531,621 1,864,211 4,418,622 303,222 - - - - 75,000 - 105,000 31,383 30,256 126,408 185,799 123,985 24,305 25,770 46,125 - - - - - - - 69,215 31,383 30,256 2,517,167 4,679,421 955,573 1,091,986 1,919,156 751,961 6,976,638 - - 1,941,829 2,697 68,078 44,923 - - 90,629 - - 34,446 1,449,825 480 11,362,000 1,150,000 25,427,556 7,243,506 2,745,250 12,587,357 12,791 3,229 21,470 - - - - - - 3,307,150 2,090,739 - - 2,402,335 18,618,297 3,898,479 38,036,383 12,395,615 3,540,564 480 2,697 2,470,413 (18,586,914) (3,868,223) (35,519,216) (7,716,194) (2,584,991) 1,091,506 1,916,459 (1,718,452) - - 412,799 - - - 1,339,978 69,408 - - 18,278,800 4,273,600 35,792,373 16,966,499 4,100,000 2,413,200 35,540 - - (16,325) (1,878,510) (11,483) (3,475,600) (1,832,800) (442,200) 18,278,800 4,273,600 35,776,048 16,427,967 4,157,925 (1,062,400) (1,832,800) 6,139 (308,114) 405,377 256,832 8,711,773 1,572,934 29,106 83,659 (1,712,313) 2,300,641 2,552,653 7,126,856 9,306,805 5,918,260 1,072,876 2,077,637 3,362,699 $ 1,992,527 $ 2,958,030 $ 7,383,688 $ 18,018,578 $ 7,491,194 $ 1,101,982 $ 2,161,296 $ 1,650,386 101 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Principal Interest Fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Leases Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year See accompanying independent auditors' report Capital Project Funds Pelican Bay Parks Road Government Water Capital Impact Impact Road Facilities Management Improvements Districts Districts Construction Impact Fees $ $ $ - $ - $ 14,867,607 $ 11,428,528 21,831,197 - 3,343,230 1,612,304 212,610 - - 4,280,313 - 43,150 - 233,026 56,546 71,239 547,827 1,578,287 899,990 64,512 - 950,139 - - - - 37,948 - - - 498,124 1,749,948 1,233,988 11,976,355 23,409,484 20,779,060 3,407,742 - - - - - 1,276 1,683,707 1,819,069 - - - - 255,019 10,795,492 60,233 5,637,507 106,067 2,019,071 8,058,896 11,654,423 - 7,321,214 1,925,136 2,079,304 8,313,915 22,449,915 1,276 (5,571,266) (691,148) 9,897,051 15,095,569 (1,670,855) 3,406,466 - 9,338 - 18,025 - - - 10,979,101 524,482 2,385 10,338,900 1,751,000 - (95,869) (3,479,700) (16,034,000) (5,505,800) 10,979,101 446,638 (3,467,977) (5,695,100) (3,754,800) 5,407,835 (244,510) 6,429,074 15,095,569 (7,365,955) (348,334) 1,062,247 3,894,278 33,065,796 92,824,664 59,592,231 4,587,357 $ 6,470,082 $ 3,649,768 $ 39,494,870 $ 107,920,233 $ 52,226,276 $ 4,239,023 102 Capital Project Funds Total Total Law All Terrain Other Capital Nonmajor Enforcement Vehicle Amateur Capital Project Governmental Impact Fees Park Sports Park Projects Funds Funds $ - $ - $ - $ - $ 14,867,607 $ 102,211,522 2,141,003 14,542 42,779,554 68,697,570 - 1,593 10,828,664 36,692,384 - 456,176 17,367,938 - - - - - 2,135,005 33,509 49,268 764,839 114,668 4,586,669 8,875,156 - - - - 950,139 5,618,796 - - - - 605,287 3,916,095 2,174,512 49,268 764,839 130,803 75,074,096 245,514,466 - 193,791 7,171,705 34,031,536 3,466 25,198 2,041,268 33,990,844 - - 3,547,699 20,233,720 11,0 50, 511 52,987, 812 - 6,070,544 90,629 7,361,402 124,093 183,097 1,852,174 30,109,466 25,705,048 12,634,372 - - - 21,470 37,394,216 1,114,706 73,785,110 91,086,910 3,466 - 37,518,309 1,516,792 99,539,096 314,233,124 2,171,046 49,268 (36,753,470) (1,385,989) (24,465,000) (68,718,658) - 101,370 - 422,137 483,394 2,581 1,429, 992 1,730, 249 5,250,075 52,361,182 129,980,627 (1,828,800) - (34,584,762) (66,243,754) (1,828,800) 5,252,656 19,628,549 66,051,886 342,246 49,268 (36,753,470) 3,866,667 (4,836,451) (2,666,772) 2,139,086 3,132,193 54,135,119 7,419,157 283,590,405 524,356,203 $ 2, 881,332 $ 3,181,461 $ 17,381,649 $ 11,285,824 $ 278,753,954 $ 521,689,431 103 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Infrastructure Sales Tax (Budgetary Basis) Budget Actual Variance Revenues: Taxes $ 86,566,800 $ 81,735,267 $ (4,831,533) Licenses, permits and impact fees - - Intergovernmental Charges for services Fines and forfeitures - - - Interest income 100,000 1,108,161 1,008,161 Special assessments - - - Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year 86,666,800 82,843,428 (3,823,372) 75,225,530 20,208,938 55,016,592 75,225,530 20,208,938 55,016,592 11,441,270 62,634,490 51,193,220 (570,000) 570,000 (570,000) - 570,000 10,871,270 62,634,490 51,763,220 62,794,056 62,794,056 - $ 73,665,326 $ 125,428,546 $ 51,763,220 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report $ 62,634,490 59,247 Road Districts (Budgetary Basis) Budget Actual Variance 1,930,500 2,147,631 217,131 199,000 306,606 107,606 25,000 56,346 31,346 47,900 59,978 12,078 2,202,400 2,570,561 368,161 23,180,135 21,673,551 1,506,584 300 300 - 427, 841 300,197 127,644 23,608,276 21,974,048 1,634,228 (21,405,876) (19,403,487) 2,002,389 - 16,695 16,695 104,000 153,641 49,641 20,943,800 20,943,659 (141) (1,228,800) (1,228,800) - 19,819,000 19,885,195 66,195 (1,586,876) 481,708 2,068,584 1,586,876 1,586,876 - $ - $ 2,068,584 $ 2,068,584 $ 481,708 3,092 14,030 104 Unincorporated Area MSTD Community Development (Budgetary Basis) (Budgetary Basis) Budget Actual Variance $ 51,842,100 $ 49,114,908 $ (2,727,192) 28,600 42,533 13,933 - 266,958 266,958 2,971,367 1,816,687 (1,154,680) 219,800 211,023 (8,777) 152,000 568,548 416,548 245,461 482,005 236,544 55,459,328 52,502,662 (2,956,666) 7,813,502 6,083,263 1,730,239 4,799,300 4,338,215 461,085 693,100 591,913 101,187 16,345, 239 14,781,8 52 1,563,387 113,100 107,286 5,814 13,970,600 12,670,541 1,300,059 7,900 7,848 52 2,484,133 988,744 1,495,389 46,226,874 39,569,662 6,657,212 9,232,454 12,933,000 3,700,546 - 108 108 143,601 53,985 (89,616) 12,028,900 12,073,753 44,853 (27,632,851) (26,723,528) 909,323 (15,460,350) (14,595,682) 864,668 (6,227,896) (1,662,682) 4,565,214 11,736,596 11,736,596 - $ 5,508,700 $ 10,073,914 $ 4,565,214 $ (1,662,682) 4,437 6,208 (111,500) $ (1,763,537) Budget Actual Variance 24,431,600 25,827,873 1,396,273 - 154,215 154,215 3,485,600 3,364,487 (121,113) 464,300 684,425 220,125 50,200 51,453 1,253 28,431,700 30,082,453 1,650,753 9,410,909 8,391,251 1,019,658 25,205,316 19,517,096 5,688,220 1,374,600 1,289,841 84,759 361,900 351,698 10,202 827,791 246,428 581,363 37,180,516 29,796,314 7,384,202 (8,748,816) 286,139 9,034,955 100 5,570 5,470 300 4,469 4,169 1,054,700 1,054,701 1 (9,954,800) (5,881,380) 4,073,420 (8,899,700) (4,816,640) 4,083,060 (17,648,516) (4,530,501) 13,118,015 35,603,116 35,603,116 - $ 17,954,600 $ 31,072,615 $ 13,118,015 $ (4,530,501) (4,688) 426,580 $ (4,108,609) 105 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Water Management and Pollution Control Pelican Bay (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 2,727,000 $ 2,632,338 $ (94,662) $ 608,400 $ 585,501 $ (22,899) Licenses, permits and impact fees - - - - - - Intergovernmental - 99,728 99,728 881 881 Charges for services 375,000 342,655 (32,345) - - Fines and forfeitures - - - - - - Interest income 15,000 32,836 17,836 14,600 92,962 78,362 Special assessments - - - 4,845,700 4,668,657 (177,043) Miscellaneous - - 4,499 4,499 Total revenues 3,117,000 3,107,557 (9,443) 5,468,700 5,352,500 (116,200) Expenditures: Current: General government - - - - Public safety - - - - - - Physical environment 3,024,397 2,495,850 528,547 1,231,300 908,832 322,468 Transportation - - - 3,578,200 3,220,194 358,006 Economic environment - - - Human services Culture and recreation - - - Debt service - - - 25,900 25,775 125 Capital outlay 72,800 67,904 4,896 174,600 170,054 4,546 Total expenditures 3,097,197 2,563,754 533,443 5,010,000 4,324,855 685,145 Excess (deficit) of revenues over (under) expenditures 19,803 543,803 524,000 458,700 1,027,645 568,945 Other financing sources (uses): Bondsissued - - - - - - Premiums on bonds issued Loansissued - - - - Sale of capital assets 696 696 26,675 26,675 Insurance proceeds - - - - 2,400 2,400 Transfers in 42,500 59,378 16,878 36,900 81,196 44,296 Transfers out (199,200) (187,792) 11,408 (261,100) (206,950) 54,150 Total other financing sources (uses) (156,700) (127,718) 28,982 (224,200) (96,679) 127,521 Net change in fund balances (136,897) 416,085 552,982 234,500 930,966 696,466 Fund balances at beginning of year 889,698 889,698 - 3,072,100 3,072,100 - Fund balances at end of year $ 752,801 $ 1,305,783 $ 552,982 $ 3,306,600 $ 4,003,066 $ 696,466 Reconciliation Net change in fund balance, budgetary basis $ 416,085 $ 930,966 Change in fair value of investments 621 1,843 Change in inventory 28,890 - Advances budgeted as transfers - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 445,596 $ 932,809 See accompanying independent auditors' report 106 Stormwater Utility Grants and Shared Revenues (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance - - 117,212,528 14,034,838 (103,177,690) 62,500 62,500 170,470 - (170,470) 5,000 33,380 28,380 47,764 106,997 59,233 - 2,196,116 1,903,670 (292,446) 5,000 95,880 90,880 119,626,878 16,045,505 (103,581,373) - - - 2,631,934 2,074,953 556,981 - - - 222,789 111,273 111,516 6,135,000 4,810,983 1,324,017 2,477,854 723,080 1,754,774 - - - 745,206 151,791 593,415 13,737,003 2,547,248 11,189,755 74,840,276 6,858,827 67,981,449 2,164,458 307,023 1,857,435 - 17,576 (17,576) 219,000 153,454 65,546 31,286,822 2,670,946 28,615,876 6,354,000 4,964,437 1,389,563 128,106,342 15,462,717 112,643,625 (6,349,000) (4,868,557) 1,480,443 (8,479,464) 582,788 9,062,252 - - 837 837 - 185 185 - - - 7,505,600 7,505,600 - 7,709,004 1,314,599 (6,394,405) (1,279,100) (1,279,100) - (154,259) (107,905) 46,354 6,226,500 6,226,685 185 7,554,745 1,207,531 (6,347,214) (122,500) 1,358,128 1,480,628 (924,719) 1,790,319 2,715,038 252,200 252,200 - 3,288,037 3,288,037 - $ 129,700 $ 1,610,328 $ 1,480,628 $ 2,363,318 $ 5,078,356 $ 2,715,038 $ 1,358,128 $ 1,790,319 934 10,386 (3,831) - - 725,932 $ 1, 555,231 $ 2,5 66,637 107 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Improvement Districts Fire Control Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 4,997,600 $ 4,825,693 $ (171,907) $ 1,359,900 $ 1,311,423 $ (48,477) Licenses, permits and impact fees - - - - - Intergovernmental - 8,598 8,598 - - Charges for services 231,700 100,263 (131,437) 8,265 8,265 Fines and forfeitures - - - - - - Interest income 120,900 265,659 144,759 1,000 19,338 18,338 Special assessments - - - - - - Miscellaneous - 24,429 24,429 1,200 - (1,200) Total revenues 5,350,200 5,224,642 (125,558) 1,362,100 1,339,026 (23,074) Expenditures: Current: General government - - - - - Public safety - - - 1,859,400 1,837,751 21,649 Physical environment 5,559,871 978,823 4,581,048 - - - Transportation 1,757,167 1,049,846 707,321 Economic environment - - - Human services - - - Culture and recreation 1,350,214 1,208,128 142,086 - - - Debt service 2,200 2,111 89 29,800 29,702 98 Capital outlay 10,319,406 2,041,406 8,278,000 - - - Total expenditures 18,988,858 5,280,314 13,708,544 1,889,200 1,867,453 21,747 Excess (deficit) of revenues over (under) expenditures (13,638,658) (55,672) 13,582,986 (527,100) (528,427) (1,327) Other financing sources (uses): Bondsissued - Premiums on bonds issued Loansissued - - Sale of capital assets 26 26 Insurance proceeds - 75,901 75,901 - - Transfers in 2,888,472 2,570,771 (317,701) 576,200 572,850 (3,350) Transfers out (2,475,551) (2,314,106) 161,445 (42,700) (39,979) 2,721 Total other financing sources (uses) 412,921 332,592 (80,329) 533,500 532,871 (629) Net change in fund balances (13,225,737) 276,920 13,502,657 6,400 4,444 (1,956) Fund balances at beginning of year 16,167,164 16,167,164 - 336,800 336,800 - Fund balances at end of year $ 2,941,427 $ 16, 444,084 $ 13, 002,657 $ 443,200 $ 441,244 $ (1,9561 Reconciliation: Net change in fund balance, budgetary basis $ 276,920 $ 4,444 Change in fair value of investments 39,133 295 Change in inventory - - Advances budgeted as transfers (340,000) Unbudgeted funds - Net change in fund balance, GAAP basis $ (23,947) $ 4,739 See accompanying independent auditors' report 108 Lighting Districts 911 Enhancement Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 877,300 $ 848,683 $ (28,617) $ $ $ 1,800,000 1,925,352 125,352 3,100 10,916 7,816 26,200 19,227 (6,973) 10,012 10,012 - - - 880,400 869,611 (10,789) 1,826,200 1,944,579 118,379 2,127,300 1,893,102 234,198 866,400 728,607 137,793 - - - 910,100 877,853 32,247 866,400 728,607 137,793 3,037,400 2,770,955 266,445 14,000 141,004 127,004 (1,211,200) (826,376) 384,824 4,648 4,648 (30,700) (24,464) 6,236 (30,700) (19,816) 10,884 - (16,700) 121,188 (137,888) (1,211,200) (826,376) 384,824 306,900 306,900 2,586,800 2,586,800 - $ 290,200 $ 428,088 $ (137,888) $ 1,375,600 $ 1,760,424 $ 384,824 $ 121,188 $ (826,376) 255 23,972 $ 1 11,443 $ (802,404) 109 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Tourist Development State Housing Initiativeship Partnership (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 28,485,100 $ 26,062,312 $ (2,422,788) $ $ $ Licenses, permits and impact fees - - - Intergovernmental - 3,154,943 3,154,943 4,318,968 382,654 (3,936,314) Charges for services 28,200 13,689 (14,511) - - Fines and forfeitures - - - - - Interest income 574,700 1,299,135 724,435 176,991 49,103 (127,888) Special assessments - - - - - Miscellaneous 22,700 20,528 (2,172) 1,363,747 367,347 (996,400) Total revenues 29,110,700 30,550,607 1,439,907 5,859,706 799,104 (5,060,602) Expenditures: Current: General government - - - - - Public safety - - - Physical environment 3,864,413 3,814,936 49,477 Transportation - - - - - - Economic environment 5,858,536 2,985,035 2,873,501 Human services - - - - - - Culture and recreation 19,350,449 13,919,952 5,430,497 Debt service - - - - - Capital outlay 23,347,125 7,242,885 16,104,240 1,170 1,170 Total expenditures 46,561,987 24,977,773 21,584,214 5,859,706 2,986,205 2,873,501 Excess (deficit) of revenues over(under)expenditures (17,451,287) 5,572,834 23,024,121 - (2,187,101) (2,187,101) Other financing sources (uses): Bondsissued - - Premiums on bonds issued Loansissued - - Sale of capital assets 7,550 7,550 Insurance proceeds 7,040 7,040 Payment to refunding bond escrow - - - Transfers in 6,582,900 6,271,200 (311,700) Transfers out (9,561,700) (8,308,346) 1,253,354 (31,572) (31,572) Total other financing sources (uses) (2,978,800) (2,022,556) 956,244 (31,572) (31,572) Net change in fund balances (20,430,087) 3,550,278 23,980,365 (2,218,673) (2,218,673) Fund balances at beginning of year 77,801,684 77,801,684 - - Fund balances at end of year $ 57,371,597 $ 81, 551,962 $ 23, 880,365 $ $ (2,218,673) $ (2218,673) Reconciliation: Net change in fund balance, budgetary basis $ 3,550,278 $ (2,218,673) Change in fair value of investments 5,539 (2,058) Change in inventory - Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 3, 555,817 $ (2,220,731) See accompanying independent auditors' report 110 800 MHZ IRCP Fund State Court Administration (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 275,400 312,201 36,801 76,000 109,200 33,200 - - - 488,500 511,112 22,612 800 19,097 18,297 1,000 4,274 3,274 145,200 148,221 3,021 - 20,320 20,320 421,400 479,519 58,119 565,500 644,906 79,406 - - - 1,268,400 1,229,498 38,902 957,529 955,739 1,790 1,583,100 1,527,629 55,471 237,900 237,896 4 - - - 96,441 96,441 - 6,000 4,497 1,503 1,291,870 1,290,076 1,794 2,857,500 2,761,624 95,876 (870,470) (810,557) 59,913 (2,292,000) (2,116,718) 175,282 2,636 2,636 1,030,400 1,030,400 2,455,400 2,455,400 - (245,900) (245,900) 1,030,400 1,033,036 2,636 2,209,500 2,209,500 - 159,930 222,479 62,549 (82,500) 92,782 175,282 374,070 374,070 - 124,300 124,300 - $ 5 44,000 $ 996,549 $ 62,549 $ 41,800 $ 117,082 $ 175,282 $ 222,479 $ 92,782 539 117 111 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Confiscated Property GAC Land Sales, Roads and Canals (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures 450,000 450,000 Interest income 2,000 522 (1,478) 9,000 12,159 3,159 Special assessments - - - - - Miscellaneous 16,900 - (16,900) Total revenues 2,000 450,522 448,522 25,900 12,159 (13,741) Expenditures: Current: General government - - - - - Public safety 31,500 11,500 20,000 Physical environment - - - Transportation Economic environment Human services - - - Culture and recreation 105,700 105,002 698 Debt service - - - Capital outlay - - - - - Total expenditures 31,500 11,500 20,000 105,700 105,002 698 Excess (deficit) of revenues over (under) expenditures (29,500) 439,022 468,522 (79,800) (92,843) (13,043) Other financing sources (uses): Bondsissued - - Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) - Net change in fund balances (29,500) 439,022 468,522 (79,800) (92,843) (13,043) Fund balances at beginning of year 94,500 94,500 - 895,200 895,200 Fund balances at end of year $ 65,000 $ 533,522 $ 468,522 $ 815,400 $ 802,357 $ (13,043) Reconciliation: Net change in fund balance, budgetary basis $ 439,022 $ (92,843) Change in fair value of investments 1,012 (138) Change in inventory - - Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 440,034 $ (92,981) See accompanying independent auditors' report 112 Utility Fee Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 70,000 $ 86,754 $ 16,754 $ $ 755 $ 755 - - - 5,350 5,350 - 3,489 3,489 2,073 2,073 100,000 100,000 - 100 471 371 13,700 19,351 5,651 302,400 484,135 181,735 - 19,500 1,730 (17,770) 183,700 209,594 25,894 322,000 494,514 172,514 331,616 244,556 87,060 864,742 765,295 99,447 - 1,897,452 1,649,716 247,736 331,616 244,556 87,060 2,762,194 2,415,011 347,183 (147,916) (34,962) 112,954 (2,440,194) (1,920,497) 519,697 3,100 3,100 1,393,700 1,393,702 2 (1,403,700) (1,393,700) 10,000 (10,000) 3,102 13,102 (147,916) (34,962) 112,954 (2,450,194) (1,917,395) 532,799 1,373,616 1,373,616 - 30,879,594 30,879,594 - $ 1,225,700 $ 1,338,654 $ 112,954 $ 28,429,400 $ 28,962,199 $ 532,799 $ (34,962) $ (1,917,395) 144 2,303 J (34,tS-I b) 5 (l,g I b,UYZ) 113 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Court Information Technology (Budgetary Basis) Court Services Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental 435,309 446,545 11,236 Charges for services 750,000 1,078,064 328,064 5,683,250 6,475,135 791,885 Fines and forfeitures - - - - - - Interest income 4,200 17,810 13,610 43,900 30,986 (12,914) Special assessments - - - - - Miscellaneous - - - Total revenues 754,200 1,095,874 341,674 6,162,459 6,952,666 790,207 Expenditures: Current: General government 1,404,700 979,696 425,004 6,162,459 6,019,879 142,580 Public safety 50,000 27,973 22,027 - - - Physical environment - - - Transportation Economic environment - - - Human services 46,878 41,307 5,571 Culture and recreation - - - Debt service - - - Capital outlay 92,300 46,210 46,090 - - - Total expenditures 1,593,878 1,095,186 498,692 6,162,459 6,019,879 142,580 Excess (deficit) of revenues over (under) expenditures (839,678) 688 840,366 - 932,787 932,787 Other financing sources (uses): Bondsissued - - - - Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) - - - Net change in fund balances (839,678) 688 840,366 932,787 932,787 Fund balances at beginning of year 1,056,778 1,056,778 - - - Fund balances at end of year $ 217,100 $ 1, 557,466 $ 840,366 $ $ 332,787 $ 332,787 Reconciliation: Net change in fund balance, budgetary basis $ 688 $ 932,787 Change in fair value of investments (76) - Change in inventory - Advances budgeted as transfers Unbudgeted funds - (932,787) Net change in fund balance, GAAP basis $ 612 $ See accompanying independent auditors' report 114 University Extension Court Facilities Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 10,000 6,616 (3,384) - - - - - 810,000 854,099 44,099 1,322 1,322 65,000 109,701 44,701 10,000 7,938 (2,062) 875,000 963,800 88,800 1,456,194 528,722 927,472 42,742 39,446 3,296 - 1,577,424 33,909 1,543,515 42,742 39,446 3,296 3,033,618 562,631 2,470,987 (32,742) (31,508) 1,234 (2,158,618) 401,169 2,559,787 (10,000) 10,000 (10,000) 10,000 - - (42,742) (31,508) 11,234 (2,158,618) 401,169 2,559,787 43,242 43,242 - 8,602,232 8,602,232 - $ 500 $ 11,734 $ 11,234 $ 6,443,614 $ 9,003,401 $ 2,559,787 $ (31,508) $ 401,169 (30) (56) 0 101,000) Zl 4U I, 113 115 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Affordable Housing Economic and Innovation Zones (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes S $ $ $ 1,349,000 $ 1,349,000 $ Licenses, permits and impact fees - - Intergovernmental Charges for services 5,389 5,389 Fines and forfeitures - - - Interest income 7,784 7,784 16,984 16,984 Special assessments - - - - Miscellaneous - - - - Total revenues 5,389 13,173 7,784 1,349,000 1,365,984 16,984 Expenditures: Current: General government - - - - - - Public safety Physical environment Transportation - - - - - - Economic environment 758,144 664,963 93,181 202,674 113,271 89,403 Human services - - - - - - Culture and recreation Debt service - - Capital outlay 372,090 - 372,090 - - - Total expenditures 1,130,234 664,963 465,271 202,674 113,271 89,403 Excess (deficit) of revenues over (under) expenditures (1,124,845) (651,790) 473,055 1,146,326 1,252,713 106,387 Other financing sources (uses): Bondsissued - - - - Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds - - Transfers in 591,990 591,990 Transfers out - - Total other financing sources (uses) 591,990 591,990 - - - - Net change in fund balances (532,855) (59,800) 473,055 1,146,326 1,252,713 106,387 Fund balances at beginning of year 532,855 532,855 - 208,000 208,000 - Fund balances at end of year $ - $ 473,055 $ 473,055 $ 1,354,326 $ 1,460,713 $ 106,387 Reconciliation: Net change in fund balance, budgetary basis $ (59,800) $ 1,252,713 Change in fair value of investments 48 1,207 Change in inventory - - Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ (59,752) $ 1,253, 220 See accompanying independent auditors' report 116 Other Public Safety Revenue Funds Other Court Special Revenue Funds (Budgetary Basis) Budget Actual Variance Budget Actual Variance 1,100,000 1,366,682 266,682 70,000 60,690 (9,310) - - - 69,000 70,976 1,976 70,000 32,142 (37,858) 19,000 19,708 708 1,170,000 1,398,824 228,824 158,000 151,374 (6,626) 2,733,500 442,370 2,291,130 - - - - - - 520,000 59,155 460,845 507,000 - 507,000 100,000 - 100,000 3,240,500 442,370 2,798,130 620,000 59,155 560,845 (2,070,500) 956,454 3,026,954 (462,000) 92,219 554,219 (150,000) 150,000 - (150,000) - 150,000 (2,070,500) 956,454 3,026,954 (612,000) 92,219 704,219 4,100,799 4,100,799 - 1,169,000 1,169,000 - $ 2,0 00,299 $ 5,057,253 $ 3, 226,954 $ 557,000 $ 1, 661,219 $ 004,219 $ 956,454 $ 92,219 5 - (456,310) $ 9 66,454 $ (364,086) 117 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Other Special Revenue Funds Resource Recovery Park Endowment (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 92,400 42,260 (50,140) 272,800 240,778 (32,022) 7,875 7,875 35,000 37,795 2,795 - - - 7,700 20,505 12,805 25,000 28,262 3,262 135,000 118,634 (16,366) 8,200 250 (7,950) 542,900 459,972 (82,928) 33,200 36,387 3,187 238,900 177,412 61,488 151,900 151,900 - - - - - - 32,100 9,575 22,525 413,300 370,639 42,661 235,400 46,646 188,754 50,390 50,174 216 - - - 1,089,890 796,771 293,119 32,100 9,575 22,525 (546,990) (336,799) 210,191 1,100 26,812 25,712 259,000 259,000 Total other financing sources (uses) 259,000 259,000 - - - - Net change in fund balances (287,990) (77,799) 210,191 1,100 26,812 25,712 Fund balances at beginning of year 897,490 897,490 - 1,756,300 1,756,300 - Fund balances at end of year $ 609,500 $ 819,691 $ 210,191 $ 1,757,400 $ 1,783,112 $ 25,712 Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report $ (77,799) $ 26,812 (176) 53 y �//,7/JJ y GV,OVJ 118 Pepper Ranch Conservation Bank Pooled Commercial Paper Program (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 559,298 559,298 3,000 9,079 6,079 93 93 24,200 41,200 17,000 - - 27,200 609,577 582,377 93 93 58,300 37,950 20,350 803,500 629,387 174,113 58,300 37,950 20,350 803,500 629,387 174,113 (31,100) 571,627 602,727 (803,500) (629,294) 174,206 775,900 775,900 - 775,900 775,900 - (31,100) 571,627 602,727 (27,600) 146,606 174,206 317,400 317,400 - 27,600 27,600 - $ 886,300 $ 889,027 $ 602,727 $ - $ 774,206 $ 174,206 $ 571,627 $ 146,606 673 30 119 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Gas Tax Revenue Bonds Community Redevelopment Taxable Note (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 2,000,000 1,864,211 (135,789) 1,000 47,787 46,787 2,001,000 1,911,998 (89,002) 1,473 1,473 1,473 1,473 13,365,200 13,349,876 15,324 4,392,000 986,846 3,405,154 13,365,200 13,349,876 15,324 4,392,000 986,846 3,405,154 (11,364,200) (11,437,878) (73,678) (4,392,000) (985,373) 3,406,627 11,262,400 11,262,400 4,389,500 1,198,500 (3,191,000) 11,262,400 11,262,400 4,389,500 1,198,500 (3,191,000) (101,800) (175,478) (73,678) (2,500) 213,127 215,627 1,035,300 1,035,300 352,500 352,500 - $ 933,500 $ 559,822 $ (73,678) $ 350,000 $ 565,627 $ 215,627 $ (175,478) $ 213,127 5,128 25 120 Forest Lakes Limited General Special Obligation Revenue Bonds Obligation Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 546,200 $ 526,548 $ (19,652) $ $ $ 2,000 10,434 8,434 12,500 31,566 19,066 548,200 536,982 (11,218) 12,500 31,566 19,066 554,100 553,498 602 18,641,700 18,618,297 23,403 554,100 553,498 602 18,641,700 18,618,297 23,403 (5,900) (16,516) (10,616) (18,629,200) (18,586,731) 42,469 3,173 3,173 18,278,800 18,278,800 (21,800) (16,325) 5,475 - - (21,800) (13,152) 8,648 18,278,800 18,278,800 - (27,700) (29,668) (1,968) (350,400) (307,931) 42,469 610,100 610,100 - 2,131,800 2,131,800 - $ 5 22,400 $ 880,432 $ (1, 668) $ 1,781,400 $ 1,823,869 $ 42,469 $ (29,668) $ (307,931) (201) (183) 121 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Tourist Development Tax Revenue Bonds County -Wide Capital Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ $ $ $ $ Licenses, permits and impact fees Intergovernmental 2,967,428 4,418,622 1,451,194 Charges for services 75,000 75,000 - Fines and forfeitures - - - Interest income 1,500 31,357 29,857 70,000 273,065 203,065 Special assessments - - - - - - Miscellaneous - - - - - Total revenues 1,500 31,357 29,857 3,112,428 4,766,687 1,654,259 Expenditures: Current: General government - - - 7,810,218 6,976,638 833,580 Public safety 2,966,446 1,941,829 1,024,617 Physical environment 64,291 44,923 19,368 Transportation - - - Economic environment - - - Human services 105,000 90,629 14,371 Culture and recreation - - - 51,023 34,446 16,577 Debt service 3,937,300 3,898,479 38,821 - - - Capital outlay - - - 12,445,911 3,307,150 9,138,761 Total expenditures 3,937,300 3,898,479 38,821 23,442,889 12,395,615 11,047,274 Excess (deficit) of revenues over (under) expenditures (3,935,800) (3,867,122) 68,678 (20,330,461) (7,628,928) 12,701,533 Other financing sources (uses): Bondsissued - - Premiums on bonds issued Loansissued Sale of capital assets - - Insurance proceeds - - - 1,339,978 1,339,978 Transfers in 5,111,600 4,273,600 (838,000) 24,331,402 16,966,499 (7,364,903) Transfers out - - (1,751,000) (1,878,510) (127,510) Total other financing sources (uses) 5,111,600 4,273,600 (838,000) 22,580,402 16,427,967 (6,152,435) Net change in fund balances 1,175,800 406,478 (769,322) 2,249,941 8,799,039 6,549,098 Fund balances at beginning of year 2,521,100 2,521,100 3,649,726 3,649,726 - Fund balances at end of year $ 3,696,900 $ 2,927,578 $ (769,322) $ 5,899,667 $ 12,448,765 $ 6,549,098 Reconciliation: Net change in fund balance, budgetary basis $ 406,478 $ 8,799,039 Change in fair value of investments (1,101) (87,266) Change in inventory Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 405,377 $ 8,711,773 See accompanying independent auditors' report 122 Parks Improvements County -Wide Library Impact Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 590,000 528,366 (61,634) 910,000 1,067,681 157,681 864,805 303,222 (561,583) - - - 82,000 121,099 39,099 11,000 24,812 13,812 1,536,805 952,687 (584,118) 921,000 1,092,493 171,493 4,825,237 1,449,825 3,375,412 89,638 480 89,158 7,117,512 2,090,739 5,026,773 - - - 11,942,749 3,540,564 8,402,185 89,638 480 89,158 (10,405,944) (2,587,877) 7,818,067 831,362 1,092,013 260,651 - 69,408 69,408 - - 5,700,000 4,100,000 (1,600,000) 2,413,200 2,413,200 (14,000) (11,483) 2,517 (3,475,600) (3,475,600) 5,686,000 4,157,925 (1,528,075) (1,062,400) (1,062,400) - (4,719,944) 1,570,048 6,289,992 (231,038) 29,613 260,651 5,808,262 5,808,262 - 784,538 784,538 - $ 1, 888,318 $ 7, 778,310 $ 6,289,992 $ 553,500 $ 814,151 $ 260,651 $ 1,570,048 $ 29,613 2,886 (507) 123 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Correctional Facilities Impact Fees Emergency Medical Services Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ $ Licenses, permits and impact fees 1,610,000 1,893,386 283,386 400,000 531,621 131,621 Intergovernmental - - - - - - Charges for services 105,000 105,000 Fines and forfeitures - - - - - - Interest income 12,000 24,763 12,763 15,000 47,811 32,811 Special assessments - - - - - - Miscellaneous - - 69,215 69,215 Total revenues 1,622,000 1,918,149 296,149 415,000 753,647 338,647 Expenditures: Current: General government - - - - - - Public safety 140,844 2,697 138,147 173,203 68,078 105,125 Physical environment - - - - - - Transportation Economic environment Human services Culture and recreation Debt service - - - Capital outlay - - 2,633,931 2,402,335 231,596 Total expenditures 140,844 2,697 138,147 2,807,134 2,470,413 336,721 Excess (deficit) of revenues over (under) expenditures 1,481,156 1,915,452 434,296 (2,392,134) (1,716,766) 675,368 Other financing sources (uses): Bondsissued - - - - Premiums on bonds issued Loansissued - - Sale of capital assets 412,799 412,799 Insurance proceeds - - Transfers in 35,540 35,540 Transfers out (1,832,800) (1,832,800) (442,200) (442,200) - Total other financing sources (uses) (1,832,800) (1,832,800) (442,200) 6,139 448,339 Net change in fund balances (351,644) 82,652 434,296 (2,834,334) (1,710,627) 1,123,707 Fund balances at beginning of year 1,930,944 1,930,944 - 3,222,334 3,222,334 - Fund balances at end of year $ 1,579,300 $ 2, 113,596 $ 434,296 $ 888,000 $ 1, 111,707 $ 1,123,707 Reconciliation: Net change in fund balance, budgetary basis $ 82,652 $ (1,710,627) Change in fair value of investments 1,007 (1,686) Change in inventory - Advances budgeted as transfers Unbudgeted funds - Net change in fund balance, GAAP basis $ 83, 559 $ (1,712,313) See accompanying independent auditors' report 124 Water Management Pelican Bay Capital Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 104,350 1,612,304 1,507,954 212,610 212,610 43,150 43,150 - 50,000 53,521 3,521 3,200 71,257 68,057 - - - 986,600 950,139 (36,461) 37,948 37,948 - - - 154,350 1,746,923 1,592,573 989,800 1,234,006 244,206 2,261,028 16,623,715 1,683,707 5,637,507 577,321 10,986,208 2,382,717 2,069,204 1,819,069 106,067 563,648 1,963,137 18,884,743 7,321,214 11,563,529 4,451,921 1,925,136 2,526,785 (18,730,393) (5,574,291) 13,156,102 (3,462,121) (691,130) 2,770,991 - - - 18,025 18,025 22,296,900 10,979,101 (11,317,799) 520,000 524,482 4,482 (2,085,933) - 2,085,933 (133,600) (95,869) 37,731 20,210,967 10,979,101 (9,231,866) 386,400 446,638 60,238 1,480,574 5,404,810 3,924,236 (3,075,721) (244,492) 2,831,229 1,431,061 1,431,061 - 3,625,021 3,625,021 - $ 2,9 11,635 $ 6, 335,871 $ 3, 224,236 $ 449,300 $ 3, 880,529 $ 2, 331,229 $ 5,404,810 $ (244,492) 3,025 (18) 125 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Parks Impact Districts Road Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ $ - $ - $ - $ - $ Licenses, permits and impact fees 9,125,000 11,428,528 2,303,528 15,000,000 21,831,197 6,831,197 Intergovernmental - - - - - - Charges for services Fines and forfeitures - - - - - - Interest income 112,000 703,309 591,309 856,000 1,572,767 716,767 Special assessments - - - - - - Miscellaneous - - - - - Total revenues 9,237,000 12,131,837 2,894,837 15,856,000 23,403,964 7,547,964 Expenditures: Current: General government - - - - - - Public safety Physical environment - - - Transportation 3,179,923 255,019 2,924,904 Economic environment - - - Human services Culture and recreation 342,894 60,233 282,661 Debt service - - - - - - Capital outlay 29,942,405 2,019,071 27,923,334 68,819,411 8,058,896 60,760,515 Total expenditures 30,285,299 2,079,304 28,205,995 71,999,334 8,313,915 63,685,419 Excess (deficit) of revenues over (under) expenditures (21,048,299) 10,052,533 31,100,832 (56,143,334) 15,090,049 71,233,383 Other financing sources (uses): Bondsissued - - - - Premiums on bonds issued Loansissued - - Sale of capital assets 9,338 9,338 Insurance proceeds - - Transfers in 2,385 2,385 Transfers out (3,479,700) (3,479,700) - Total other financing sources (uses) (3,479,700) (3,467,977) 11,723 - - Net change in fund balances (24,527,999) 6,584,556 31,112,555 (56,143,334) 15,090,049 71,233,383 Fund balances at beginning of year 29,972,460 29,972,460 - 88,429,674 88,429,674 - Fund balances at end of year $ 5,444,461 $ 36, 557,016 $ 31,112,555 $ 32, 886,340 $ 103,519,723 $ 71,233,383 Reconciliation: Net change in fund balance, budgetary basis $ 6,584,556 $ 15,090,049 Change in fair value of investments (155,482) 5,520 Change in inventory - Advances budgeted as transfers Unbudgeted funds - - Net change in fund balance, GAAP basis $ 6, 229,074 $ 15, 995,569 See accompanying independent auditors' report 126 Road Construction Government Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 16,267,600 $ 14,867,607 $ (1,399,993) $ - $ - $ - - - 2,625,000 3,343,230 718,230 4,732,400 4,280,313 (452,087) - - - 184,970 233,026 48,056 525,000 902,782 377,782 35,000 63,105 28,105 1,164,027 498,124 (665,903) - - - 22,873,997 20,781,852 (2,092,145) 2,660,000 3,406,335 746,335 99,442 1,276 98,166 14,297,324 10,795,492 3,501,832 37,543,664 11,654,423 25,889,241 - - - 51,840,988 22,449,915 29,391,073 99,442 1,276 98,166 (28,966,991) (1,668,063) 27,298,928 2,560,558 3,405,059 844,501 13,388,900 10,338,900 (3,050,000) 1,751,000 1,751,000 (30,634,973) (16,034,000) 14,600,973 (5,505,800) (5,505,800) (17,246,073) (5,695,100) 11,550,973 (3,754,800) (3,754,800) - (46,213,064) (7,363,163) 38,849,901 (1,194,242) (349,741) 844,501 63,026,197 63,026,197 - 4,284,842 4,284,842 - $ 16,8 33,133 $ 55, 663,034 $ 38, 449,901 $ 3, 990,600 $ 3, 335,101 $ 444,501 $ (7,363,163) $ (349,741) (2,792) 1,407 127 COLLIER COUNTY, FLORIDA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2020 Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Premiums on bonds issued Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances at beginning of year Fund balances at end of year Reconciliation: Net change in fund balance, budgetary basis Change in fair value of investments Change in inventory Advances budgeted as transfers Unbudgeted funds Net change in fund balance, GAAP basis See accompanying independent auditors' report Law Enforcement Impact Fee All Terrain Vehicle Park (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 1,450,000 2,141,003 691,003 20,000 32,913 12,913 30,000 49,377 19,377 1,470,000 2,173,916 703,916 30,000 49,377 19,377 148,364 3,466 144,898 50,420 50,420 148,364 3,466 144,898 50,420 50,420 1,321,636 2,170,450 848,814 (20,420) 49,377 69,797 (1,828,800) (1,828,800) (1,828,800) (1,828,800) - - - (507,164) 341,650 848,814 (20,420) 49,377 69,797 1,291,031 1,291,031 - 3,075,620 3,075,620 - $ 783,867 $ 1, 332,681 $ 848,814 $ 3, 555,200 $ 3, 224,997 $ 69,797 $ 341,650 $ 49,377 596 (109) $ 342, 446 $ 49,268 128 Amateur Sports Park Other Capital Projects (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance 8,000 14,542 6,542 - 1,593 1,593 750,000 288,317 (461,683) 25,300 115,590 90,290 750,000 288,317 (461,683) 33,300 131,725 98,425 527,062 193,791 333,271 81,479 25,198 56,281 209,454 59,114,772 124,093 37,394,216 85,361 21,720,556 768,244 5,715,908 183,097 1,114,706 585,147 4,601,202 59,324,226 37,518,309 21,805,917 7,092,693 1,516,792 5,575,901 (58,574,226) (37,229,992) 21,344,234 (7,059,393) (1,385,067) 5,674,326 - 2,581 2,581 5,286,500 5,250,075 (36,425) (91,223) - 91,223 5,195,277 5,252,656 57,379 (58,574,226) (37,229,992) 21,344,234 (1,864,116) 3,867,589 5,731,705 58,611,726 58,611,726 - 7,306,047 7,306,047 - $ 37,500 $ 21,381,734 $ 21,344,234 $ 5,441,931 $ 11, 773,636 $ 5,731,705 $ (37,229,992) $ 3,867,589 476,522 (922) 129 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ NONMAJOR ENTERPRISE FUNDS AIRPORT AUTHORITY - To account for the provision of landing facilities and the sale of fuel at the airports. COLLIER AREA TRANSIT - To account for the provision of public transportation throughout the County. 131 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2020 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Leases Due from other funds Due from other governments Inventory Restricted assets: Cash and investments Due from other governments Total current assets Noncurrent assets: Receivables: Leases Capital assets: Land and nondepreciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Retainage payable Due to other funds Due to other governments Unearned revenues Compensated absences Total OPEB liability Net pension liability Liabilities payable from restricted assets: Accounts payable Wages payable Retainage payable Due to other governments Refundable deposits Unearned revenue Total current liabilities Noncurrent liabilities: Advances from other funds Compensated absences Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Restricted for grants and other purposes Unrestricted Total net position See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 3,972,304 $ 171,576 $ 4,143,880 36,391 8,140 44,531 4,011 1,017 5,028 187,813 - 187,813 - 96,908 96,908 4,896 - 4,896 109,299 109,299 182,779 23,566 206,345 2,458,812 3,335,973 5,794,785 6,956,305 3,637,180 10,593,485 582,246 582,246 16,528,097 6,224,600 22,752,697 27,597,571 18,687,745 46,285,316 44,707,914 24,912,345 69,620,259 51,664,219 28,549,525 80,213,744 5,190 2,008 7,198 257,739 105,239 362,978 262,929 107,247 370,176 211,431 162,721 374,152 43,937 18,772 62,709 158,774 - 158,774 - 83,467 83,467 5,287 16,494 21,781 28,050 - 28,050 54,779 29,177 83,956 3,560 1,424 4,984 3,248 1,114 4,362 753,117 1,660,719 2,413,836 - 128 128 905,563 35,628 941,191 - 18,952 18,952 9,826 50 9,876 2,177,572 2,028,646 4,206,218 1,056,494 - 1,056,494 13,695 7,294 20,989 57,276 22,910 80,186 927,140 372,395 1,299,535 2,054,605 402,599 2,457,204 4,232,177 2,431,245 6,663,422 757,454 - 757,454 2,312 921 3,233 29,416 10,861 40,277 789,182 11,782 800,964 42,230,054 24,317,971 66,548,025 973,085 2,238,436 3,211,521 3,702,650 (342,662) 3,359,988 $ 46,905,789 $ 26,213,745 $ 73,119,534 132 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For The fiscal Year Ended September 30, 2020 Operating revenues: Charges for services Miscellaneous Total operating revenues Operating expenses: Personal services Operating Depreciation Total operating expenditures Operating loss Non -operating revenues: Operating grants and contributions Interest income Insurance reimbursement Interest expense Gain on disposal of capital assets Total non -operating revenues Loss before contributions and transfers Capital grants and contributions Transfers in Transfers out Total transfers and contributions Changes in net position Net position - beginning Net position - ending See accompanying independent auditors' report Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds $ 5,013,946 $ 792,954 $ 5,806,900 14,077 184,674 19 8,7 51 5,028,023 977,628 6,005,651 1,306,089 528,431 1,834,520 3,284,237 11,176,749 14,460,986 1,551,049 2,083,879 3,634,928 6,141,375 13,789,059 19,930,434 (1,113,352) (12,811,431) (13,924,783) 191,927 3,966,993 4,158,920 73,614 23,094 96,708 37,210 59,759 96,969 (12,265) - (12,265) (46,420) 58,721 12,301 244,066 4,108,567 4,352,633 (869,286) (8,702,864) (9,572,150) 5,454,311 3,786,391 9,240,702 1,425,600 5,062,520 6,488,120 (15,000) - (15,000) 6,864,911 8,848,911 15,713,822 5,995,625 146,047 6,141,672 40,910,164 26,067,698 66,977,862 $ 46,905,789 $ 26, 113,745 $ 73.119,534 133 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The fiscal Year Ended September 30, 2020 Total Collier Nonmajor Airport Area Enterprise Authority Transit Funds Cash flows from operating activities: Cash received for services $ 5,007,369 $ 980,636 $ 5,988,005 Cash payments for goods and services (2,888,127) (8,446,163) (11,334,290) Cash payments to employees (1,118,658) (451,288) (1,569,946) Cash payments for interfund services (532,378) (2,804,077) (3,336,455) Net cash provided by (used for) operating activities 468,206 (10,720,892) (10,252,686) Cash flows from non -capital financing activities: Cash received from operating grants 187,031 3,508,029 3,695,060 Cash transfers from other funds 1,864,445 5,054,717 6,919,162 Cash transfers to other funds (15,170) - (15,170) Net cash provided by non -capital financing activities 2,036,306 8,562,746 10,599,052 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 37,210 37,808 75,018 Proceeds from disposal of capital assets 4,836 10,325 15,161 Proceeds from capital grants 5,908,875 1,979,099 7,887,974 Proceeds from leasing activities 183,428 - 183,428 Payments for capital acquisitions (6,915,072) (1,128,243) (8,043,315) Interest and fiscal agent fees paid (12,265) (12,265) Net cash provided by (used for) capital and related financing activities (792,988) 898,989 106,001 Cash flows from investing activities: Interest on investments 78,347 26,170 104,517 Net cash provided by investing activities 78,347 26,170 104,517 Net increase (decrease) in cash and investments 1,789,871 (1,232,987) 556,884 Cash and investments, October 1, 2019 2,365,212 1,428,129 3,793,341 Cash and investments, September 30, 2020 $ 4,1 55,083 $ 995,142 $ 4, 550,225 Cash and investments $ 3,972,304 $ 171,576 $ 4,143,880 Cash and investments - restricted 182,779 23,566 206,345 Cash and investments, September 30, 2020 $ 4,1 55,083 $ 995,142 $ 4, 550,225 Operating loss $ (1,113,352) $ (12,811,431) $ (13,924,783) Adjustments to reconcile operating loss to net cash provided by (used for) operating activities: Depreciation expense 1,551,049 2,083,879 3,634,928 Net changes in assets and liabilities: Trade receivable (12,428) 3,003 (9,425) Due from other funds - (20,183) (20,183) Due from other governments 67 67 Inventory 16,196 16,196 Accounts payable 43,569 (87,266) (43,697) Wages payable 11,551 3,557 15,108 Due to other funds - 33,958 33,958 Due to other governments 693 5 698 Compensated absences 16,101 1,961 18,062 Unearned revenue (8,986) - (8,986) Total OPEB liability 11,729 5,447 17,176 Deferred outflows of resources related to OPEB (805) (322) (1,127) Deferred inflows of resources related to OPEB (956) (382) (1,338) Net pension liability 210,586 94,669 305,255 Deferred outflows of resources related to pensions (39,019) (19,011) (58,030) Deferred inflows of resources related to pensions (21,756) (8,776) (30,532) Deferred inflows of resources related to leases (196,033) - (196,033) Total adjustments 1,581,558 2,090,539 3,672,097 Net cash provided by (used for) operating activities $ 468,206 $ (10,720,892) $ (10,252,686) Non -cash investing, capital and financing activities: Change in fair value of investments $ 1,567 $ (429) $ 1,138 Contributed capital assets - 727,481 727,481 Change in capital related grant receivable (454,564) 1,079,811 625,247 Capital related accounts payable 831,277 558,746 1,390,023 Capital related retainage payable 1,064,337 35,628 1,099,965 See accompanying independent auditors' report 134 INTERNAL SERVICE FUNDS SELF-INSURANCE — To account for the self-insurance costs of providing coverage for property, general and vehicle liability. To account for the provisions of health benefits to Board and participating constitutional officer employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. SHERIFF'S SELF-INSURANCE — To account for the provisions of health benefits to Sheriff employees and their dependents. To account for payment of workers' compensation claims, in lieu of insurance. FLEET MANAGEMENT — To account for fuel, oil, lubricants, repairs and maintenance of County vehicles and the use of certain County owned vehicles by County employees. MOTOR POOL CAPITAL RECOVERY — To account for the accumulation of resources for the replacement of vehicles and heavy equipment for County governmental activities. INFORMATION TECHNOLOGY — To account for the costs of operating the County data processing facility and telephone communication system. 135 ASSETS Current assets: Cash and investments Receivables: Trade, net Interest Due from other funds Due from other governments Inventory Prepaid costs Total current assets Noncurrent assets: Capital assets: Land and nondepriciable capital assets Depreciable capital assets, net Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB Deferred outflows of resources related to pensions Total deferred outflows of resources LIABILITIES Current liabilities: Accounts payable Wages payable Due to other governments Unearned revenues Self-insurance claims payable Compensated absences Lease payable Total OPEB liability Net pension liability Total current liabilities Noncurrent liabilities: Self-insurance claims payable Compensated absences Lease payable Total OPEB liability Net pension liability Total noncurrent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB Deferred inflows of resources related to pensions Total deferred inflows of resources NET POSITION Net investment in capital assets Unrestricted Total net position See accompanying independent auditors' report COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2020 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total $ 45,428,521 $ 15,489,941 $ 1,660,145 $ 10,939,538 $ 6,357,678 $ 79,875,823 914,292 265,506 - - - 1,179,798 48,344 39,461 1,343 11,911 6,825 107,884 2,000 500,000 4,800 - - 506,800 - - 36,141 105 36,246 - 368,528 - 368,528 1,062,435 - 244,929 1,307,364 47,455,592 16,294,908 2,070,957 10,951,449 6,609,537 83,382,443 - 143,714 - 760,674 904,388 278,529 8,580,782 10,391,980 2,151,668 21,402,959 278,529 8,724,496 10,391,980 2,912,342 22,307,347 47,734,121 16,294,908 10,795,453 21,343,429 9,521,879 105,689,790 5,474 10,218 391 17,593 33,676 346,657 556,723 20,417 1,051,488 1,975,285 352,131 566,941 20,808 1,069,081 2,008,961 246,293 472,043 251,007 148,630 1,127,457 2,245,430 58,386 - 100,897 3,839 168,784 331,906 5,189 - - - - 5,189 25,381 108,130 133,511 5,429,644 2,901,000 8,330,644 99,790 - 133,633 5,755 230,353 469,531 3,184 - - - 3,184 3,322 6,408 237 10,680 20,647 3,063 6,125 232 9,373 18,793 5,874,252 3,481,173 498,070 158,693 1,546,647 11,558,835 2,033,713 - - - 2,033,713 24,947 33,408 1,439 57,588 117,382 10,132 - - - 10,132 53,458 103,097 3,819 171,828 332,202 1,209,056 1,976,777 72,715 3,669,762 6,928,310 3,331,306 2,113,282 77,973 3,899,178 9,421,739 9,205,558 3,481,173 2,611,352 236,666 5,445,825 20,980,574 2,529 4,980 179 8,035 15,723 32,494 58,715 2,194 99,011 192,414 35,023 63,695 2,373 107,046 208,137 265,213 - 8,724,496 10,243,350 2,072,498 21,305,557 38,580,458 12,813,735 (37,149) 10,881,848 2,965,591 65,204,483 $ 38,845,671 $ 12,813,735 $ 8, 887,347 $ 21, 225,198 $ 5,038,089 $ 86,510,040 136 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2020 Sheriffs Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating revenues: Charges for services $ 53,807,642 $ 30,563,419 $ 8,945,545 $ 4,204,700 $ 12,793,001 $ 110,314,307 Miscellaneous 56,374 - 15,654 - 27,431 99,459 Total operating revenues 53,864,016 30,563,419 8,961,199 4,204,700 12,820,432 110,413,766 Operating expenses: Personal services 1,547,865 - 2,680,778 103,426 4,685,452 9,017,521 General and administrative 9,831,551 2,421,872 5,682,984 3,536 5,009,792 22,949,735 Claims paid 41,186,285 26,062,032 - - - 67,248,317 Depreciation and amortization 51,649 - 595,576 2,178,447 992,692 3,818,364 Total operating expenditures 52,617,350 28,483,904 8,959,338 2,285,409 10,687,936 103,033,937 Operating income 1,246,666 2,079,515 1,861 1,919,291 2,132,496 7,379,829 Non -operating revenues: Operating grants and contributions - - - - 8 8 Interest income 733,101 142,823 18,334 177,052 86,577 1,157,887 Insurance reimbursement 2,590,684 - 690 40,356 - 2,631,730 Interest expense (206) - - - (206) Gain on disposal of capital assets (303) - 3,629 506,293 7,281 516,900 Total non -operating revenues 3,323,276 142,823 22,653 723,701 93,866 4,306,319 Income before contributions and transfers 4,569,942 2,222,338 24,514 2,642,992 2,226,362 11,686,148 Capital grants and contributions - - 7,024 - - 7,024 Transfers in - 1,548,900 245,900 1,794,800 Transfers out (76,600) - - (300,000) (376,600) Total transfers and contributions (76,600) - 7,024 1,548,900 (54,100) 1,425,224 Changes in net position 4,493,342 2,222,338 31,538 4,191,892 2,172,262 13,111,372 Net position - beginning 34,352,329 10,591,397 8,655,809 16,933,306 2,865,827 73,398,668 Net position - ending $ 38,845,671 $ 12,813,735 $ 8,687,347 $ 21,125,198 $ 5,038,089 $ 86,510,040 See accompanying independent auditors' report 137 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2020 Sheriff's Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services $ 45,877,653 $ Cash received from employees for services 7,418,907 Cash received from other governments for services - Cash received from retirees for services 587,203 Cash payments on behalf of retirees (1,212,181) Cash payments for goods and services (9,032,005) Cash payments for self insurance claims (42,637,758) Cash payments to employees (1,348,112) Cash payments for interfund services (840,920) Net cash provided by (used for) operating 29,750,000 $ 8,604,663 $ 4,204,700 $ 12,820,432 $ 101,257,448 - - - - 7,418,907 - 371,533 371,533 1,318,632 - 1,905,835 - (1,212,181) (2,411,958) (5,580,431) (436) (4,949,061) (21,973,891) (25,743,475) - - (68,381,233) (2,428,335) (89,716) (4,403,451) (8,269,614) (384,100) (3,100) (157,530) (1,385,650) activities (1,187,213) 2,913,199 583,330 4,111,448 3,310,390 9,731,154 Cash flows from non -capital financing activities: Cash transfers from other funds Cash transfers to other funds (76,600) Net cash provided by (used for) non -capital financing activities (76,600) Cash flows from capital and related financing activities: Receipts from insurance reimbursements 2,318,711 Proceeds from disposal of capital assets - Payments for capital acquisitions (7,024) Principal payments on leases (2,876) Interest and fiscal agent fees paid (206) Net cash provided by (used for) capital and related financing activities 2,308,605 1,548,900 245,900 1,794,800 - (347,600) (424,200) 1,548,900 (101,700) 1,370,600 690 40,356 - 2,359,757 3,629 538,850 8,512 550,991 (412,742) (4,005,974) (689,380) (5,115,120) (2,876) (206) (408,423) (3,426,768) (680,868) (2,207,454) Cash flows from investing activities: Interest on investments 820,703 145,873 20,599 192,494 90,988 1,270,657 Net cash provided by investing activities 820,703 145,873 20,599 192,494 90,988 1,270,657 Net increase in cash and investments 1,865,495 3,059,072 195,506 2,426,074 2,618,810 10,164,957 Cash and investments, October 1, 2019 43,563,026 12,430,869 1,464,639 8,513,464 3,738,868 69,710,866 Cash and investments, September 30, 2020 S 45.428.521 S 15.489.941 S 1.660.145 S 10.939.538 S 6.357.678 S 79.875,823 Operating income $ 1,246,666 $ 2,079,515 $ 1,861 $ 1,919,291 $ 2,132,496 $ 7,379,829 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization expense 51,649 595,576 2,178,447 992,692 3,818,364 Net changes in assets and liabilities: Trade receivable (11,487) (108,089) - - - (119,576) Due from other funds 14,516 500,000 (4,800) 509,716 Due from other governments - - 18,161 18,161 Inventory - 19,026 19,026 Prepaid costs (1,062,435) - (164,915) (1,227,350) Accounts payable (179,004) 472,043 (295,773) - 68,121 65,387 Wages payable 9,872 - 19,548 691 1,852 31,963 Due to other funds - (3,164) - - (3,164) Due to other governments (3,176) - - (5) (3,181) Compensated absences 12,685 5,529 3,691 (20,500) 1,405 Unearned revenue 16,666 (45,000) - - (28,334) Self-insurance claims payable (1,460,361) 14,730 - - - (1,445,631) Total OPEB liability 3,896 - 11,290 279 12,521 27,986 Deferred outflows of resources related to OPEB (752) (1,449) (54) (2,415) (4,670) Deferred inflows of resources related to OPEB (892) (1,720) (64) (2,867) (5,543) Net pension liability 250,820 314,936 12,687 442,900 1,021,343 Deferred outflows of resources related to pensions (41,629) (37,420) (1,462) (23,904) (104,415) Deferred inflows of resources related to pensions (34,247) - (58,271) (2,058) (125,586) (220,162) Total adjustments (2,433,879) 833,684 581,469 2,192,157 1,177,894 2,351,325 Net cash provided (used) by operating activities S (1.187,213) S 2.913.199 S 583.330 S 4.111.448 S 3.310.390 S 9.731.154 Non -cash investing, capital and financing activities: Change in fair value of investments $ 11,628 $ - $ (108) $ 3,791 $ 4,475 $ 19,786 Contributed capital assets 7,024 - - 7,024 Capital related accounts payable - 148,630 839,844 988,474 See accompanying independent auditors' report 138 FIDUCIARY FUNDS CLERK OF COURTS AGENCY FUND - To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF AGENCY FUND - To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR AGENCY FUND - To account for assets held by the Tax Collector prior to legal disbursement. DEPOSITS AGENCY FUND - To account for monies held by the County for businesses and individuals. PINE RIDGE AND NAPLES PRODUCTION PARK AGENCY FUND - To account for the receipt of special assessments and the payment of principal and interest on behalf of assessment holders. 139 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION AGENCY FUNDS September 30, 2019 Pine Ridge Clerk Tax and Naples of Courts Sheriff Collector Deposits Production Park Agency Fund Agency Fund Agency Fund Agency Fund Agency Fund Total ASSETS Cash and investments $ 21,037,834 $ 626,910 $ 6,798,864 $ 5,955,180 $ 1,012,248 $ 35,431,036 Receivables: Interest - - - 5,916 1,018 6,934 Other - 5,124 25,050 - - 30,174 Total assets $ 21,037,834 $ 632,034 $ 6,823,914 $ 5,961,096 $ 1,013,266 $ 35,468,144 LIABILITIES Due to other governments $ 1,647,258 $ 78,738 $ 6,658,060 $ $ $ 8,384,056 Due to individuals - 553,296 165,854 719,150 Refundable deposits 19,390,576 - - 5,961,096 25,351,672 Due to special assessment holders - - 1,013,266 1,013,266 Total liabilities $ 21,037,834 $ 632,034 $ 6,823,914 $ 5,961,096 $ 1,013,266 $ 35,468,144 See accompanying independent auditors' report 140 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCYFUNDS For The Fiscal Year Ended September 30, 2020 Balance Balance October 1 Additions Deductions September 30 Clerk of Courts Agency Fund Assets: Cash and investments $ 18,842,673 $ 157,774,239 $ 155,579,078 $ 21,037,834 Total assets $ 18,842, 773 $ 157,774,239 $ 155,579,078 $ 21,037,834 Liabilities: Due to other governments $ 1,211,858 $ 3,461,876 $ 3,026,476 $ 1,647,258 Refundable deposits 17,630,815 154,312,363 152,552,602 19,390,576 Total liabilities $ 18,842, 773 $ 157,774,239 $ 155,579,078 $ 21,037,834 Sheriff Agency Fund Assets: Cash and investments $ 613,876 $ 626,910 $ 613,876 $ 626,910 Receivable: Other 9,646 5,124 9,646 5,124 Total assets $ 623,522 $ 632,034 $ 623,522 $ 632,034 Liabilities: Due to other governments $ 95,128 $ 78,738 $ 95,128 $ 78,738 Due to individuals 528,394 553,296 528,394 553,296 Total liabilities $ 623, 222 $ 632,034 $ 623,522 $ 632,034 Tax Collector Agency Fund Assets: Cash and investments $ 6,835,471 $ 1,209,548,470 $ 1,209,585,077 $ 6,798,864 Receivable: Other 29,549 3,862,447 3,866,946 25,050 Total assets $ 6,865, 220 $ 1,213,410,917 $ 1,213,452,023 $ 6,823,914 Liabilities: Due to other governments $ 6,681,433 $ 1,361,025,893 $ 1,361,049,266 $ 6,658,060 Due to individuals 183,587 1,177,891,072 1,177,908,805 165,854 Total liabilities $ 6,865,020 $ 2,538,916,965 $ 2,538,958,071 $ 6,823,914 Deposits Agency Fund Assets: Cash and investments $ 6,354,232 $ 538,294 $ 937,346 $ 5,955,180 Receivables: Interest 19,665 5,916 19,665 5,916 Total assets $ 6,373,897 $ 544,210 $ 957,011 $ 5,961,096 Liabilities: Refundable deposits $ 6,373,897 $ 519,845 $ 932,646 $ 5,961,096 Total liabilities $ 6,373, 997 $ 519,845 $ 932,646 $ 5,961,096 (Continued) 141 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION AGENCYFUNDS For The Fiscal Year Ended September 30, 2020 Balance Balance October 1 Additions Deductions September 30 Pine Ridge and Naples Production Park Agency Fund Assets: Cash and investments Receivables: Interest Total assets Liabilities: Due to special assessment holders Total liabilities Total - All Agency Funds Assets: Cash and investments Receivables: Interest Other Total assets Liabilities: Due to other governments Due to individuals Refundable deposits Due to special assessment holders Total liabilities See accompanying independent auditors' report $ 993,846 $ 18,438 $ 36 $ 1,012,248 3,215 1,018 3,215 1,018 $ 997,061 $ 19,456 $ 3,251 $ 1,013,266 $ 997,061 $ 19,456 $ 3,251 $ 1,013,266 $ 997,061 $ 19,456 $ 3,251 $ 1,013,266 $ 33,640,098 $ 1,368,506,351 $ 1,366,715,413 $ 35,431,036 22,880 6,934 22,880 6,934 39,195 3,867,571 3,876,592 30,174 $ 33,702,173 $ 1,372,380,856 $ 1,370,614,885 $ 35,468,144 $ 7,988,419 $ 1,364,566,507 $ 1,364,170,870 $ 8,384,056 711,981 1,178,444,368 1,178,437,199 719,150 24,004,712 154,832,208 153,485,248 25,351,672 997,061 19,456 3,251 1,013,266 $ 33,702,173 $ 2,697,862,539 $ 2,696,096,568 $ 35,468,144 142 COMPONENT UNITS COLLIER COUNTY HOUSING FINANCE AUTHORITY -The authority was established for the purpose of stimulating the construction of residential housing for low and moderate income families through the use of public financing. COLLIER COUNTY HEALTH FACILITIES AUTHORITY - The authority was established for the purpose of assisting health facilities in the acquisition, construction and financing of projects within the County. COLLIER COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY - The authority was established for the purpose of facilitating projects that promote economic growth and opportunities for employment in Collier County. COLLIER COUNTY EDUCATIONAL FACILITIES AUTHORITY - The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 143 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2020 Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total ASSETS Cash and investments $ 77,553 $ 21,827 $ 118,710 $ 10,049 $ 228,139 Total assets $ 77,553 $ 21,827 $ 118,710 $ 10,049 $ 228,139 NET POSITION Net position - unrestricted $ 77,553 $ 21,827 $ 118,710 $ 10,049 $ 228,139 Total Net Position $ 77,553 $ 21,827 $ 118,710 $ 10,049 $ 228,139 See accompanying independent auditors' report 144 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2020 Program Revenues Fees, Fines and Functions/Programs Expenses Charges for Services Industrial Development Authority Health Facilities Authority Housing Finance Authority Educational Facilities Authority Total See accompanying independent auditors' report Net (Expense) Revenue and Changes in Net Position Governmental Activities $ 4,706 $ 60,500 $ 55,794 4,765 - (4,765) 4,675 10,000 5,325 17,265 (17,265) $ 31,411 $ 70,500 $ 39,089 General revenues: Interest income Total general revenues Change in net position Net position - beginning Net position - ending 265 265 39,354 188,785 $ 228,139 145 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 147 COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2020 Amount Amount Received Expended in the in the 2020 2020 Source Fiscal Year Fiscal Year British Petroleum: Gulf Seafood and Tourism Promotional Fund $ $ Note: This schedule does not include funds related to the Deepwater Horizon Oil Spill that are considered Federal awards or State financial assistance. The Schedule of Expenditures of Federal Awards and State Financial Assistance does not include any expenditures of Federal awards or State financial assistance related to the Deepwater Horizon Oil Spill for the 2020 fiscal year. 148 .cistical Section 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Statistical schedules differ from financial statements because they usually cover more than one fiscal year and may present non -accounting data. These schedules reflect social and economic data, and financial trends of Collier County, Florida. FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government's financial perfomance and wellbeing have changed over time. NetPosition by Component....................................................................................................................................... 152 Changein Net Position............................................................................................................................................... 154 Governmental Activities Tax Revenues by Source.................................................................................................. 156 Fund Balances of Governmental Funds.................................................................................................................... 157 Changes in Fund Balances of Governmental Funds...............................................................................................158 REVENUE CAPACITY These schedules contain trend information to help the reader assess the County's most significant local revenue source, Property Tax. Assessed Value and Estimated Actual Value of Taxable Property.......................................................................160 Property Tax Rates — All Direct and Overlapping Governments............................................................................162 PrincipalTaxpayers County-Wide.............................................................................................................................. 163 PropertyTax Levies and Collections.........................................................................................................................164 DEBT CAPACITY These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Ratios of Outstanding Debt by Type.......................................................................................................................... 165 Legaldebt margin information.................................................................................................................................. 166 Direct, Overlapping and Underlapping Governmental Activities Debt...................................................................166 Pledged -Revenue Coverage....................................................................................................................................... 167 DEMOGRAPHIC AND ECONOMIC INFORMATION These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Demographic and Economic Statistics.................................................................................................................... 168 PrincipalEmployers..................................................................................................................................................... 169 OPERATING INFORMATION These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Budgeted Full -Time Equivalent County Employees by Function...........................................................................170 Operating Indicators by Function.............................................................................................................................. 171 Capital Asset Statistics by Function.........................................................................................................................172 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 151 COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 Governmental Activities: Net investment in capital assets $ 1,331,163 $ 1,302,980 $ 1,287,184 $ 1,257,685 $ 1,225,520 $ 1,217,176 Restricted 559,050 478,719 362,045 336,922 327,968 298,360 Unrestricted (23,652) (32,158) (29,328) (24,011) 2,478 13,109 Total governmental activities net position $ 1,866,561 $ 1,749,541 $ 1,619,901 $ 1,570,596 $ 1,555,966 $ 1,528,645 Business -type Activities: Net investment in capital assets $ 818,092 $ 777,814 $ 763,259 $ 741,912 $ 723,000 $ 714,239 Restricted 42,036 39,371 31,982 32,619 35,760 31,511 Unrestricted 215,623 205,756 143,198 168,602 169,287 165,128 Total business -type activities net position $ 1,075,751 $ 1,022,941 $ 938,439 $ 943,133 $ 928,047 $ 910,878 Primary Government: Net investment in capital assets $ 2,149,255 $ 2,080,794 $ 2,050,443 $ 1,999,597 $ 1,948,520 $ 1,931,415 Restricted 601,086 518,090 394,027 369,541 363,728 329,871 Unrestricted 191,971 173,598 113,870 144,591 171,765 178,237 Total primary government net position $ 2,942,312 $ 2,772,482 $ 2,558,340 $ 2,513,729 $ 2,484,013 $ 2,439,523 152 Fiscal Year 2014 2013 2012 2011 $ 1,207,751 $ 1,198,971 $ 1,187,298 $ 1,172,121 223,526 221,501 226,934 253,977 169,633 152,790 147,188 147,080 $ 1,600,910 $ 1,573,262 $ 1,561,420 $ 1,573,178 $ 705,065 $ 668,160 $ 650,684 $ 643,777 29,749 34,379 34,199 38,002 185,420 196,050 194,389 177,939 $ 920,234 $ 898,589 $ 879,272 $ 859,718 $ 1,912,816 $ 1,867,131 $ 1,837,982 $ 1,815,898 253,275 255,880 261,133 291,979 355,053 348,840 341,577 325,019 $ 2,521,144 $ 2,471,851 $ 2,440,692 $ 2,432,896 153 CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 Expenses Governmental activities: General government $ 135,978 $ 134,018 $ 126,920 $ 108,388 $ 104,188 $ 93,644 Public safety 266,736 254,341 223,177 225,360 205,347 174,874 Transportation 89,954 88,200 83,386 75,589 70,560 70,296 Culture and recreation 56,900 59,401 58,042 51,889 49,526 45,117 Other activities 54,967 52,500 64,822 41,899 48,256 45,621 Interest on long-term debt 12,321 13,223 9,736 11,294 12,077 12,912 Total governmental activities expenses $ 616,856 $ 601,683 $ 566,083 $ 514,419 $ 489,954 $ 442,464 Business -type activities: Water and Sewer $ 155,368 $ 153,602 $ 144,113 $ 144,850 $ 130,792 $ 122,858 Solid Waste 49,158 47,529 106,823 43,664 39,271 36,411 Emergency Medical Services 33,761 34,871 32,275 28,644 26,529 24,094 Airport Authority 6,168 6,361 5,533 4,905 4,402 4,771 Mass Transit 13,716 13,090 12,680 11,354 11,333 10,416 Total business -type activities expenses 258,171 255,453 301,424 233,417 212,327 198,550 Total primary government expenses S 775.027 S 557.136 S 667.507 S 447.836 $ 002.281 $ 441.014 Program Revenues Governmental activities: Charges for services: General government $ 39,204 $ 39,981 $ 37,703 $ 33,377 $ 35,184 $ 34,240 Public safety 25,037 26,137 28,040 24,240 25,276 25,227 Transportation 1,425 1,206 2,111 2,024 4,880 1,094 Culture and recreation 5,055 7,808 7,886 8,192 8,393 8,685 Other activities 1,959 1,862 2,235 1,467 1,230 4,237 Operating Grants and Contributions 34,025 30,313 29,549 26,539 26,387 35,521 Capital Grants and Contributions 47,343 56,268 47,645 38,124 36,818 29,986 Total governmental activities program revenues 154,048 163,575 155,169 133,963 138,168 138,990 Business -type activities: Charges for services: Water and Sewer 162,702 155,839 145,757 135,045 123,856 116,645 Solid Waste 53,885 51,928 50,449 45,209 41,918 39,121 Emergency Medical Services 13,069 13,854 12,836 11,812 13,161 12,327 Airport Authority 4,959 4,639 3,951 3,734 3,073 3,350 Mass Transit 978 1,203 1,129 1,267 1,225 1,719 Operating Grants and Contributions 11,548 46,592 16,426 5,025 4,435 5,142 Capital Grants and Contributions 42,099 37,888 38,670 26,993 25,367 21,165 Total business -type activities program revenues 289,240 311,943 269,218 229,085 213,035 199,469 Total primary government program revenues 443,288 475,518 424,387 363,048 351,203 338,459 Net (expense)/revenue: Governmental activities (462,808) (438,108) (410,914) (380,456) (351,786) (303,474) Business -type activities 31,069 56,490 (32,206) (4,332) 708 919 Total primary government net expense S (431.739) S (381.618) S (443.120) S (384.788) S (351.078) $ (302.555) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 376,140 $ 356,099 $ 337,447 $ 312,633 $ 281,136 $ 259,779 Gas taxes 21,005 24,485 22,749 21,799 20,478 19,547 Sales taxes 45,228 49,550 44,093 41,799 40,659 38,573 Local government sales tax 81,735 60,787 - - - - Tourist taxes 26,062 31,653 27,962 21,961 21,838 21,188 Othertaxes 6,438 7,140 6,914 7,478 7,280 7,322 State revenue sharing 12,343 13,194 12,564 11,602 11,100 10,589 Interest income 14,336 24,113 6,857 3,574 4,891 5,069 Miscellaneous 11,523 17,594 18,121 9,714 5,976 17,510 Transfers, net (15,020) (16,837) (16,487) (14,793) (14,250) (14,192) Total governmental activities S 579,790 S 567.778 $ 460,220 S 415.767 S 379.108 $ 365,385 Business -type Activities: Interest income $ 5,870 $ 9,699 $ 2,602 $ 1,379 $ 2,011 $ 2,209 Miscellaneous 851 1,476 8,423 126 200 94 Transfers, net 15,020 16,837 16,487 14,793 14,250 14,192 Total business -type activities 21,741 28,012 27,512 16,298 16,461 16,495 Total primary government $ 001.531 $ 995.790 S 887,732 $ 332.065 $ 995.569 $ 881,880 Change in Net Position Governmental activities $ 116,982 $ 129,670 $ 49,306 $ 35,311 $ 27,322 $ 61,911 Business -type activities 52,810 84,502 (4,694) 11,966 17,169 17,414 Total primary government S 169,792 S 214,172 S 44,612 S 47,277 S 44,491 S 79,325 154 Fiscal Year 2014 2013 2012 2011 $ 92,176 $ 95,941 $ 94,227 $ 103,045 177,267 171,210 165,782 173,286 71,623 69,275 73,000 81,383 41,630 41,453 42,507 44,205 39,171 43,067 51,057 39,991 12,674 16,129 16,412 19,797 $ 434,541 $ 437,075 $ 442,985 $ 461,707 $ 112,643 $ 114,041 $ 102,642 $ 104,333 33,787 32,760 29,618 28,000 23,208 21,545 21,792 22,657 3,764 4,439 4,601 4,458 10,306 10,111 9,925 10,187 183,708 182,8% 168,578 169,635 S 618,249 $ 619,971 S 611.563 S 631,342 $ 34,662 $ 36,080 $ 31,388 $ 33,919 21,765 19,735 16,743 15,554 959 1,045 880 715 7,943 8,416 9,126 9,093 2,661 3,667 4,941 2,296 31,444 20,921 22,892 19,503 28,945 28,280 20,279 19,347 128,379 118,144 106,249 100,427 107,924 109,176 103,042 105,858 35,368 34,585 34,275 33,769 9,922 10,335 10,249 8,980 2,589 3,021 2,805 2,938 1,641 1,450 1,360 1,290 3,077 3,914 2,948 4,378 30,662 24,953 17,818 14,307 191,183 187,434 172,497 171,520 319,562 305,578 278,746 271,947 (306,162) (318,931) (336,736) (361,280) 7,475 4,538 3,919 1,885 S (298,687) $(314.393) S (332,817) S (359.395) $ 244,404 $ 249,352 $ 248,232 $ 261,630 18,556 18,229 18,525 18,311 35,786 32,168 29,713 28,364 19,137 16,183 14,898 13,884 7,840 9,403 9,997 10,155 9,657 8,792 8,233 8,310 2,599 1,496 2,430 3,888 13,333 9,063 7,397 11,498 (13,185) (13,912) (14,447) (13,117) $ 338,127 $ 330,774 $ 324,978 $ 342,923 $ 1,301 $ 712 $ 1,106 $ 1,609 68 154 82 96 13,184 13,912 14,447 13,117 14,553 14,778 15,635 14,822 S 352,680 S 345,552 S 340.613 S 357,745 $ 31,965 $ 11,843 $ (11,758) $ (18,357) 22,028 19,316 19,554 16,707 S 53,993 S 31,159 S 7.796 $ (1.650) 155 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Property Gas Sales Infrastructure Tourist Other Year Tax Tax Tax Sales Tax Tax Taxes Total 2011 $ 261,630 $ 18,311 $ 28,364 $ $ 13,884 $ 10,155 $ 332,344 2012 248,232 18,525 29,713 14,898 9,997 321,365 2013 249,352 18,229 32,168 16,183 9,403 325,335 2014 244,404 18,556 35,786 19,137 7,840 325,723 2015 259,779 19,547 38,573 21,188 7,322 346,409 2016 281,136 20,478 40,659 21,838 7,280 371,391 2017 312,633 21,799 41,799 21,961 7,478 405,670 2018 337,447 22,749 44,093 27,962 6,914 439,165 2019 356,099 24,485 49,550 60,787 31,653 7,140 468,927 2020 376,140 21,005 45,228 81,735 26,062 6,438 556,608 156 COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 General fund Nonspendable $ 2,779 $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 $ 19,843 $ 15,744 $ 12,914 $ 9,460 Restricted 1,087 461 306 2,440 264 345 125 96 110 - Assigned 11,664 1,115 1,736 1,598 1,674 1,299 850 813 952 2,182 Unassigned 104,299 103,707 77,342 54,805 53,961 55,002 57,781 56,497 57,091 59,705 Total general fund $ 119,829 $ 1 77,666 $ 22,029 $ 22,229 $ 59,574 $ 00,192 $ 88,599 $ 33,150 $ 71,067 $ 11,347 All other governmental funds Nonspendable $ 3,490 $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 $ 53,544 $ 46,049 $ - $ 107,626 Restricted 560,480 522,311 354,514 328,447 324,334 293,281 242,981 223,700 209,352 232,699 Committed 41,517 40,355 34,788 32,759 26,069 25,663 27,349 29,810 47,406 48,764 Assigned 52,613 31,977 21,129 33,822 28,644 30,800 28,391 36,364 80,771 34,215 Unassigned - - (246) - (89) (514) (62,085) (55,212) (48,944) 23,192 Total all other governmental funds $ 658,100 $ 597,530 $ 418,320 $ 397,413 $ 382,013 $ 352,342 $ 290,180 $ 280,711 $ 288,585 $ 446,496 157 CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Revenues: Taxes Licenses, permits and impact fees Intergovernmental Charges for services Fines and forfeitures Interest income Special assessments Miscellaneous Total revenues Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service: Principal Interest Redemption of debt Payment to refunding bond escrow Other fiscal charges Capital outlay Total expenditures Excess (deficit) of revenues over (under) expenditures Other financing sources (uses): Bondsissued Premiums on bonds issued Notes issued Payment to refunding escrow Leases Loansissued Sale of capital assets Insurance proceeds Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2020 2019 2018 2017 2016 2015 $ 503,593 $ 471,127 $ 386,814 $ 355,885 $ 322,915 $ 300,341 68,989 78,182 75,102 59,217 61,033 51,319 96,684 100,191 92,206 86,656 83,949 92,818 34,959 37,255 36,981 34,008 38,362 37,172 2,334 2,491 2,375 2,263 2,708 2,866 13,178 22,046 6,133 3,233 4,440 4,606 5,619 7,452 4,789 4,350 3,746 3,132 6,799 5,566 4,527 8,705 6,600 16,063 732,155 724,310 608,927 554,317 523,753 508,317 108,008 103,445 101,198 89,193 84,599 78,147 219,808 213,829 198,097 197,762 177,375 167,788 20,986 23,728 31,994 12,465 15,283 16,157 53,316 45,245 45,904 41,003 36,011 36,992 9,395 8,378 9,942 8,199 11,061 9,159 20,242 17,005 15,849 15,058 14,038 13,151 46,246 48,793 47,671 42,889 40,886 37,523 26,507 23,127 21,864 21,439 20,743 20,039 12,731 11,521 10,165 11,908 12,713 13,555 - - - 5,588 - - 21 801 128 48 19 21 129,056 107,881 82,871 80,495 67,198 62,186 646,316 603,753 565,683 526,047 479,926 454,718 85,839 120,557 43,244 28,270 43,827 53,599 62,965 3,238 - - 5,293 - (44,525) - - 358 - - 1,915 - 28,060 55,713 - - - 712 376 1,065 155 306 595 2,104 6,416 3,762 339 796 379 144,991 140,633 114,358 117,833 121,654 196,026 (161,271) (157,399) (132,910) (133,834) (137,530) (208,760) (13,106) 84,289 (2,537) (10,214) (14,774) (9,845) $ 72,733 $ 004,847 $ 40,707 $ 18,056 $ 29,053 $ 43,754 7.59% 6.99% 6.63% 7.48% 8.11 % 8.56% 158 Fiscal Year 2014 2013 2012 2011 $ 282,315 $ 285,765 $ 284,124 $ 296,640 40,631 35,168 30,436 23,695 89,392 83,667 79,402 74,453 35,149 32,435 30,739 27,855 3,252 3,712 4,205 3,882 2,393 1,406 2,197 3,602 2,922 2,924 3,035 2,725 11,553 4,833 4,664 10,565 467,607 449,910 438,802 443,417 73,739 75,725 73,812 79,499 163,169 153,566 151,858 160,890 11,276 13,790 22,870 14,251 38,789 37,170 42,176 50,741 9,265 14,436 14,393 7,841 12,367 12,254 10,988 13,075 34,114 33,744 34,253 35,745 18,510 25,125 31,602 36,493 14,177 17,565 18,149 20,933 2,086 132 - - 173 2,165 1,082 434 63,613 61,278 49,406 38,726 441,278 446,950 450,589 458,628 26,329 2,960 (11,787) (15,211) 89,780 73,805 131,525 24,620 - 2,082 17,192 2,050 (89,622) (73,747) (150,550) (26,593) 236 314 233 313 70 316 300 270 384 97,854 90,637 91,524 107,167 (110,052) (102,061) (103,738) (118,037) (11,410) (8,751) (13,228) (10,339) $ 14,919 $ (5,791) $ (25015) $ (25,550) 8.66% 11.07% 12.40 % 13.68% 159 COLLIER COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Government Ended Residential Commercial Institutional and Industrial September 30 Property Property Other Property Property 2011 $ 57,922,450 $ 4,281,214 $ 4,721,185 $ 753,077 2012 55,452,450 3,793,589 4,339,737 633,463 2013 55,738,290 3,785,006 4,337,007 609,058 2014 57,656,527 3,912,768 4,523,093 629,143 2015 61,457,718 4,082,445 4,692,490 651,646 2016 66,559,709 4,377,974 5,067,190 682,762 2017 73,334,846 4,681,110 5,252,880 763,216 2018 79,459,537 5,047,802 5,438,701 841,128 2019 83,819,751 5,360,190 5,681,034 923,980 2020 87,951,024 6,001,743 5,936,391 1,073,086 Agricultural Property Personal Property $ 275,544 $ 2,259,654 252,730 2,253,274 261,964 2,240,098 266,888 2,200,895 268,161 2,186,145 282,725 2,353,841 282,376 2,342,953 280,507 2,448,008 283,625 2,534,892 282,370 2,619,748 Property is assessed as of January 1, and taxes based on these assessments are levied and become due on the following November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the next succeeding calendar year. (1) The basis of assessed value required by the state is 100% of actual value including tax exemptions. Source: Property Appraiser Recapitulation Report 160 Centrally Assessed Property Less: Tax Exempt Total Taxable Assessed Value Total Direct Tax Rate Estimated Actual Taxable Value Assessed Value as a Percentage of Actual Value(') $ 171 $ 8,773,516 $ 61,439,779 4.4151 $ 70,213,295 100% 187 8,513,638 58,211,792 4.4149 66,725,430 100% 184 8,473,811 58,497,796 4.4126 66,971,607 100% 152 8,539,822 60,649,644 4.1592 69,189,466 100% 195 8,741,753 64,597,047 4.1582 73,338,800 100% 134 9,235,508 70,088,827 4.1572 79,324,335 100% 211 9,537,260 77,120,332 4.2029 86,657,592 100% 246 9,905,942 83,609,987 4.1851 93,515,929 100% 244 10,317,449 88,286,267 4.1827 98,603,716 100% 232 10,676,611 93,187,983 4.1876 103,864,594 100% 161 COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt Fiscal General Revenue Service Collier County Independent Year Fund Funds Funds Total School District Districts Total 2011 3.5645 0.6926 0.1580 4.4151 5.6990 1.3299 11.4440 2012 3.5645 0.7627 0.0877 4.4149 5.5270 1.2202 11.1621 2013 3.5645 0.7555 0.0926 4.4126 5.5760 1.2395 11.2281 2014 3.5645 0.5873 0.0074 4.1592 5.6900 1.2228 11.0720 2015 3.5645 0.5860 0.0077 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 4.1827 5.0490 1.2331 10.4648 2020 3.5645 0.6172 0.0059 4.1876 5.0830 1.2272 10.4978 Basis for property tax rates is 1 mill per $1,000 of assessed value. Property is assessed as of January 1 and taxes based on those assessments are levied according to the tax rate in effect that tax year and become due on November 1. Therefore, assessments and levies applicable to a certain tax year are collected in the fiscal year ending during the following calendar year. Sources: Property Appraiser Recapitulation Report Collier County Adopted Budget 162 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY -WIDE 2020 TAX ROLL (unaudited) 2020 Property Taxes Owner/Taxpayer Levied Marco Hotel, LLC $ 2,039,629 HHR Naples LLC 1,987,712 The Moorings, Inc. 1,552,389 PR Mercato LLP 1,397,991 Res Florida 1250 Holdings LLC 1,359,563 Coastland Center, LLC 784,612 CC -Naples Inc. 757,342 The Arlington of Naples Inc. 722,551 Westbury Props Inc. 662,259 Collier HMA, Inc. 614,732 Florida Power & Light Company - Century Link Lee County Electric Co -Op, Inc. City National Bank of Miami Wal-Mart Stores East LP - Naples HMA, Inc. Total $ 11,878,780 Total Property Taxes Levied - County -Wide $ 1,052,836,107 Amounts for taxpayers with similar names have not been combined. Sources: Property Appraiser's taxpayer listing in order of taxes levied. Property Appraiser Recapitulation Report. Rank 1 2 3 4 5 6 7 8 9 10 2011 Percent of Total Taxes Levied Property Taxes Levied Rank Percent of Total Taxes Levied 0.19% $ - 0.00% 0.19% 1,362,639 2 0.18% 0.15% - 0.00% 0.13% 660,539 10 0.09% 0.13% - 0.00% 0.07% 677,172 8 0.09% 0.07% - 0.00% 0.07% 0.00% 0.06 % - 0.00% 0.06% 670,169 9 0.09% 0.00% 2,514,323 1 0.34% 0.00% 912,781 3 0.12% 0.00% 858,602 4 0.11 % 0.00% 818,982 5 0.11 % 0.00% 738,855 6 0.10% 0.00% 726,028 7 0.10% 1.12 % $ 9,940,090 1.33 % $ 750,138,785 163 COLLIER COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Fiscal Year Total County Tax Collected within the Total County Tax Ended Levy for Fiscal Year of the Levy Levy Cost September 30 Population (') Fiscal Year Amount Percentage of Levy Per Person 2011 321,520 $ 271,393 $ 260,961 96.2% $ 844 2012 323,785 257,189 247,749 96.3% 794 2013 329,849 258,650 248,648 96.1 % 784 2014 339,642 252,323 243,084 96.3% 743 2015 348,777 268,604 259,121 96.5% 770 2016 353,936 291,369 281,114 96.5% 823 2017 360,846 324,123 312,507 96.4% 898 2018 368,534 349,928 337,361 96.4% 950 2019 376,086 369,258 356,075 96.4% 982 2020 383,166 390,115 376,086 96.4% 1,018 Property taxes levied apply only to General, Special Revenue and Debt Service Funds Property tax levies are based on assessed values as of January 1 st and become due and payable on November 1 st of each year. A four percent discount is allowed if the taxes are paid by November 30, with the discount declining by one percent each month thereafter. Accordingly, taxes collected are not 100 percent of the amount levied. Taxes become delinquent on April 1 st of each year and tax certificates for the unpaid taxes must be sold no later than June 1 st of each year. Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financial statements as there are no significant delinquent taxes as of September 30, 2020. Sources: (1) www.colliergov.net/your-government/divisions-a-e/comprehensive-planning/population-and-demographics (2) Property Appraiser Recapitulation Report 164 COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Business-tvoe Activities Fiscal Year Limited General Obligation Bonds(') Revenue BondsM Direct Placement Loans and Notes Payable Other Loans and Leases 2011 $ 14,684 $ 415,855 $ 10,586 $ 6,597 $ 2012 9,994 390,585 10,224 412 2013 4,664 373,371 7,923 323 2014 4,223 277,885 96,861 230 2015 3,369 259,563 95,116 1519 2016 2,941 246,135 87,360 937 2017 2,499 232,147 79,227 316 2018 2,037 175,975 102,930 236 2019 1,560 226,896 145,952 153 2020 1,063 209,822 136,549 7,311 Direct Placement Total Percentage Revenue Loans and Other Loans Primary of Personal Per BondsM Notes Payable and Leases Government IncomeP) CapitaP) 135,403 $ 8,589 $ 99,904 $ 691,618 3.62% 2,126 132,013 6,970 92,613 642,811 3.31°i 1,914 83,498 23,067 111,827 604,673 3.01 i, 1,794 78,470 17,100 114,235 589,004 2.67% 1,732 60,976 28,714 105,549 554,806 2.26°i 1,669 59,954 24,727 96,954 519,008 2.01% 1,577 59,351 108,278 931 482,749 1.57% 1,320 58,748 129,141 587 493,454 1.51 i 1,326 139,382 113,576 239 627,758 1.79% 1,659 138,524 98,165 957 592,391 1.55% 1,540 (1) Amounts include the unamortized premium. (2) See the Schedule of Demographic and Economic Statistics for personal income and population data. 165 COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2020 (unaudited) The Constitution of the State of Florida, Florida Statute 200.181 and Collier County set no legal debt limit. DIRECT, OVERLAPPING AND UNDERLYING DEBT As of September 30, 2020 (unaudited) Estimated Estimated Percentage Share of Debt Applicable Based Overlapping Outstanding on Population(-) Debt Direct Debt: Governmental Activities Limited General Obligation Bonds (1) $ 1,062,703 100.00% $ 1,062,703 Gas Tax Revenue Bonds (1) 11,975,484 100.00% 11,975,484 Special Obligation Revenue Bonds (1,3) 133,009,732 100.00°i 133,009,732 Tourist Development Tax Revenue Bonds (1) 64,837,473 100.00% 64,837,473 Direct Placement Loans and Notes Payable (3) 136,549,218 100.00% 125,449,218 Leases (3) 7,255,377 100.00% 7,255,377 Financed Purchase Obligations 55,661 100.00% 55,661 Total Governmental Activities Direct Debt 354,745,648 343,645,648 Overlapping Debt: N/A - 0.00 % - Underlying Debt: City of Naples (4) 4,925,070 5.78 i 284,669 City of Marco Island (5) 5,819,414 4.69 i 272,931 City of Everglades (6) - - Subtotal, Underlying Debt 10,744,484 10.47% 557,600 Total Direct, Overlapping and Underlying Debt $ 365,490,132 $ 344,203,248 (1) Amounts include the unamortized premium. (2) Population numbers obtained from www.worldpopulationreview.com/states/cities/florida (3) Totals consist of more than one issuance. (4) Governmental activities debt outstanding amount obtained from the City of Naples. (5) Governmental activities debt outstanding amount obtained from the City of Marco Island. (6) Governmental activities debt outstanding amount obtained from the City of Everglades. 166 Governmental Activities: COLLIER COUNTY, FLORIDA PLEDGED -REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Gas Tax Bonds and Direct Placement Loans Fiscal Year Gas Tax Collections Debt Service Principal Interest Coverage 2011 $ 18,312 $ 7,185 $ 7,399 1.26 2012 18,525 7,505 7,077 1.27 2013 18,229 7,855 6,453 1.27 2014 18,556 8,040 4,018 1.54 2015 19,547 9,440 3,697 1.49 2016 20,478 9,900 3,242 1.56 2017 21,799 10,195 2,939 1.66 2018 22,749 10,510 2,737 1.72 2019 22,709 10,830 2,542 1.70 2020 21,005 11,170 2,178 1.57 Business -type Activities: Special Obligation Bonds and Direct Placement Loans(") Legally Available Non -Ad Valorem Debt Service Collections(') Principal Interest Coverage $ 76,416 1,545 2,597 18.45 82,866 4,265 4,265 9.71 86,640 9,695 7,249 5.11 91,043 9,145 9,674 4.84 102,375 8,885 9,426 5.59 107,268 9,280 9,020 5.86 108,577 9,705 8,591 5.93 118,725 10,258 7,012 6.87 125,162 10,865 7,191 6.93 124,638 11,362 7,244 6.70 Fiscal Year Water/ Sewer Charges and OtherM Water and Sewer Revenue Bonds and Direct Placement Loans Less: Net Operating Available Debt Service Expenses(2) Revenue Principal Interest Coverage(1) 2011 $ 106,839 $ 60,107 $ 46,732 $ 4,969 $ 6,711 4.00 2012 104,164 58,155 46,009 5,189 6,494 3.94 2013 105,682 68,916 36,766 5,422 6,268 3.15 2014 109,514 69,710 39,804 5,967 3,986 4.00 2015 118,066 74,344 43,722 6,073 3,639 4.50 2016 125,456 84,474 40,982 3,986 2,841 6.00 2017 136,064 97,904 38,160 3,902 2,818 5.68 2018 155,847 90,507 65,340 5,528 3,050 7.62 2019 163,653 98,281 65,372 6,261 4,091 6.31 2020 169,444 100,866 68,578 6,384 6,189 5.45 (1) Operating revenues plus other income; certain interest income gain on disposal of assets, capital grants and contributions and transfers in are not included. (2) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (3) Net available revenue divided by total bonded debt service requirements for the County Water and Sewer District. (4) Special Obligation Bonds were first issued in FY-2010, debt service payments commenced in FY-2011. (5) The revenues that comprise the legally available non -ad valorem revenues are defined by bond documents; these revenues include Sales Tax and certain impact fees. 167 COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Fiscal Personal Personal Median School Unemployment Year Population(') Income(z) Income Age(') Enrollment() Rate(5) 2011 321,520 19,127,928,000 59,492 45.9 42,921 11.4% 2012 323,785 19,446,631,000 60,060 46.9 43,238 9.3% 2013 329,849 20,075,468,000 60,863 47.1 43,789 7.2% 2014 339,642 22,033,344,000 64,872 47.4 44,415 6.3% 2015 348,777 24,571,667,000 70,451 47.5 45,228 5.2% 2016 353,936 25,763,656,000 72,792 47.9 47,289 4.9% 2017 360,846 30,708,249,000 85,101 48.5 49,394 3.6% 2018 368,534 32,749,753,000 88,865 49.7 47,934 3.3% 2019 376,086 35,080,466,000 93,278 50.3 48,441 3.2% 2020 383,166 38,252,405,000 99,832 50.8 47,048 5.7% Sources: (1) www colliergov. net/your-government/divisions-a-e/comprehensive-p/anninglpopu/ation-and-demographics (2) hops://fred.stlouisfed.org/series/P112021 (3) https://fred.stlouisfed.org/series/801002001E012021 (4) wwwco11ierschoo1s.com/Page/349 (5) www. tloridajobs. oM 168 Collier County Public Schools NCH Healthcare System Arthex, Inc. Collier County Government (excl. Sheriff) Collier County Sheriffs Office Publix Supermarkets City of Naples Ritz Carlton Hotel Seminole Casino - Immokalee JW Marriott- Marco Island Other employers Totals COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) 2020 2011 Percent of Percent of Total County Total County Employees Rank Employment Employees Rank Employment 5,832 1 3.76% 5,451 1 5.16 % 4,315 2 2.78% 3,007 2 2.85% 2,856 3 1.84% 2,434 4 1.57% 2,184 4 2.07% 1,526 5 0.98% 1,387 6 1.31% 1,257 6 0.81 % 2,214 3 2.10% 1,100 7 0.71 % 1,100 8 0.71 % 900 9 0.58% 850 10 0.55% 743 7 0.70% 133,049 85.71 % 90,599 85.81 % 155,219 100.00% 105,585 100.00% Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 2019 Collier County Budget Book 169 Function: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Water and Sewer Solid Waste Emergency Medical Services Airport Authority Collier Area Transit Total COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) Last Ten Fiscal Years (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 1,366 1,342 1,299 1,351 1,262 1,217 1,216 1,203 1,222 1,219 1,100 1,080 1,089 1,112 1,124 1,096 1,072 1,061 1,061 1,062 90 80 73 73 70 69 67 67 69 66 235 228 224 219 211 192 187 187 199 213 27 31 30 29 26 27 28 26 28 27 61 58 58 58 56 56 53 51 50 50 340 347 337 324 304 298 294 289 293 293 438 436 414 410 384 342 340 342 344 344 44 45 43 31 28 27 28 29 27 27 202 202 199 194 193 193 172 172 172 172 15 15 15 15 15 14 14 16 16 16 5 5 5 4 4 3 3 3 3 1 3,923 3,869 3,786 3,820 3,677 3,534 3,474 3,446 3,484 3,490 (') Includes the Board of County Commissioners and the Constitutional Officers 170 COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Function: Police: Physical arrests 6,227 9,072 9,266 8,269 9,359 9,347 11,277 11,277 11,297 20,180 Parking violations 333 817 894 1068 867 931 964 1,182 1,175 1,479 Traffic violations 22,370 26,773 17,157 15,473 14,462 16,355 19,868 22,211 19,237 19,680 Fire: Fires reported ** ** ** ** 31 82 37 52 46 468 Emergency responses (exclude fires) ** ** ** ** 839 1,093 1,080 1,024 764 569 Number of calls answered 680 870 804 795 870 1,175 1,117 1,076 810 1,037 Transportation: Collier Area Transit ridership 723,423 913,569 944,931 996,687 1,082,519 1,177,029 1,181,530 1,361,294 1,207,866 1,154,702 Street resurfacing (lane miles) 34 43 40 38 34 34 80 78 142 131 Culture and recreation: Beach parking stickers issued 131,645 146,500 143,500 149,490 139,828 134,051 181,878 122,415 114,778 312,144 Library circulation 2,080,277 2,471,878 2,253,555 2,193,351 2,349,418 2,302,017 2,578,588 2,578,589 2,768,648 2,760,427 Water: New connections 2,031 2,297 2,776 1,951 2,023 2,204 1,878 1,417 1,189 921 Wastewater: Average daily sewage treatment 21,015 18,853 18,030 18,555 17,864 17,090 17,150 16,954 15,834 14,747 (millions of gallons) ** -Due to the consolidation of Fire Districts, this information is no longer being tracked. Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services, Greater Naples Fire District Transportation -Collier County Alternative Transportation, Road and Bridge Culture and Recreation -Collier County Parks and Recreation, Public Library Water -Collier County Utility Billing Wastewater -Collier County Wastewater 171 COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Function: Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units 273 272 272 270 274 276 276 275 275 275 Fire: Fire stations 4 4 4 4 4 4 4 3 3 3 Highways and streets: Streets (miles) 1,172 1,169 1,166 1,161 1,159 1,149 1,151 1,184 1,184 1,184 Streetlights 5,364 4,635 5,083 5,074 5,182 4,958 4,958 4,868 4,781 4,759 Traffic signals 377 377 377 374 365 360 370 353 297 295 Culture and recreation: Parks acreage 1,560 1,521 1,521 1,521 1,521 1,521 1,521 1,521 1,520 1,511 Parks 66 61 61 61 61 61 61 61 61 60 Swimming pools 9 9 9 8 8 8 8 8 8 8 Tennis courts 40 45 45 45 45 45 45 45 45 45 Community centers 9 9 9 9 9 9 8 8 8 8 Libraries 10 10 10 10 10 10 10 10 10 10 Number of volumes in libraries 659,112 663,811 593,378 557,188 567,248 605,408 683,237 692,229 673,131 741,389 Water: Number of customers 75,837 73,854 71,614 66,010 61,830 59,443 57,548 55,878 54,190 53,181 Water mains (miles) 1,166 1,149 1,132 1,067 1015 986 925 888 888 886 Maximum daily capacity (per million gallons) 33,658 32,113 30,956 32,243 33,877 31,376 30,460 30,120 29,988 29,616 Wastewater: Sanitary sewers (miles) 1,186 1,181 1,156 1,085 1,021 1,028 1,030 1,081 1,116 1,115 Primary and secondary drainage facilities 325 322 312 289 294 306 306 305 305 303 Sources: Police -Collier County Sheriff's Department Fire -Collier County Bureau of Emergency Services Highway and Streets -Collier County Traffic Operations, Transportation Engineering, Road and Bridge Culture and Recreation -Collier County Public Library, Parks and Recreation Water -Collier County Water, Utility Billing Wastewater -Collier County Stormwater, Wastewater 172 A1. i�'f F { Y p hil- 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ CliftonLarsorAller LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Board of County Commissioner Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Collier County, Florida (County), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated April 27, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2020-001 that we consider to be a material weakness. �A member of Nexia International 175 Honorable Board of County Commissioners Collier County, Florida Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The County's Response to Finding The County's response to the finding identified in our audit is described in the accompanying schedule of findings and responses. The County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. LLB CliftonLarsonAllen LLP Naples, Florida April 27, 2021 176 CliftonLarsonAllen LLP CLAconnect.com #AV INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Board of County Commissioners Collier County, Florida Report on Compliance for Each Major Federal Program and State Project We have audited Collier County, Florida's (County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the State of Florida Department of Financial Services' State Projects Compliance Supplement that could have a direct and material effect on each of the County's major federal programs and state projects for the year ended September 30, 2020. The County's major federal programs and state projects are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal awards and state projects applicable to its federal programs and state projects. Auditors' Responsibility Our responsibility is to express an opinion on compliance for each of the County's major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General Local Governmental Entity Audits (Chapter 10.550). Those standards, the Uniform Guidance, and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state project. However, our audit does not provide a legal determination of the County's compliance. �A member of Nexia International 177 Honorable Board of County Commissioners Collier County, Florida Opinion on Each Major Federal Program and State Project In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose. LLB CliftonLarsonAllen LLP Naples, Florida April 27, 2021 178 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL / STATE AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM / STATE PROJECT U.S. Department of Housing and Urban Development Direct Programs: Assistant Secretary for Community Planning and Development: CDBG - Entitlement Grants Cluster: Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants Community Development Block Grants/Entitlement Grants COVID-19 - Community Development Block Grants/ Entitlement Grants Total CFDA Total CDBG - Entitlement Grants Cluster Emergency Solutions Grant Program Emergency Solutions Grant Program COVID-19 - Emergency Solutions Grant Program Total CFDA Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Home Investment Partnerships Program Total CFDA Total U.S. Department of Housing and Urban Development U.S. Department of the Interior Direct Programs: Office of the Secretary of the Interior: Payments in Lieu of Taxes U.S. Fish and Wildlife Service: National Wildlife Refuge Fund Total U.S. Department of the Interior U.S. Department of Justice Direct Programs: Office of Justice Programs: COVID-19 - Coronavirus Emergency Supplemental Funding Program Drug Court Discretionary Grant Program STOP School Violence STOP School Violence Total CFDA Edward Byrne Memorial Justice Assistance Grant Program Edward Byrne Memorial Justice Assistance Grant Program Pass -Through Programs: Florida Department of Law Enforcement: Edward Byrne Memorial Justice Assistance Grant Program Total CFDA Residential Substance Abuse Treatment for State Prisoners CFDA / CSFA NUMBER 14.218 14.218 14.218 14.218 14.218 14.231 14.231 14.231 14.239 14.239 14.239 14.239 15.226 15.659 16.034 16.585 16.839 16.839 16.738 16.738 FEDERAL AWARD IDENTIFICATION / GRANT/CONTRACT NUMBER B-08-UN-12-0003 B-17-UC-12-0016 B-1 8-UC-1 2-0016 B-19-UC-12-0016 TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 5,534 $ 113,052 112,678 1,360,969 1,340,479 680,679 247,812 B-20-U W-12-0016 4,902 - 2,165,136 1,700,969 2,165,136 1,700,969 E-1 8-UC-1 2-0016 69,668 66,314 E-1 9-UC-1 2-0016 121,263 107,317 E-20-U W-12-0016 4,626 - 195,557 173,631 M-1 5-UC-1 2-0217 59,106 59,106 M-1 6-UC-1 2-0217 183,188 183,188 M-1 8-UC-1 2-0217 5,087 - M-19-UC-12-0217 43,012 - 290,393 242,294 2,651,086 2,116,894 Collier County 1,447,572 Collier County 150,445 1,598,017 2020-VD-BX-1629 527 - 2017-DC-BX-0053 162,603 148,100 2018-YS-BX-0011 64,824 - 2019-YS-BX-0107 175,110 239,934 2018-DJ-BX-0467 65,127 2019-DJ-BX-0888 3,094 16.738 2019-JAGC-COLL-I-N2-190 94,549 162,770 16.593 2020-RSAT-COLL-1-D2-007 34,027 (Continued) See accompanying notes to the schedule of expenditures of federal awards and state projects. 179 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS -THROUGH ENTITY CSFA GRANT/CONTRACT TRANSFERS TO FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER EXPENDITURES SUBRECIPIENTS Florida Department of Legal Affairs: VOCA-2019-Collier County Crime Victim Assistance 16.575 Sheriff's -00143 $ 175,951 $ Institute for Intergovernmental Research (IIR): Comprehensive Opioid, Stimulant, and Substance Abuse Program 16.838 2020-BRIDGES-0063 2,471 Total U.S. Department of Justice 778,283 148,100 U.S. Department of Transportation Direct Programs: Federal Aviation Administration (FAA): Airport Improvement Program 20.106 3-12-0021-004-2017 4,646 Airport Improvement Program 20.106 3-12-0031-012-2019 199,499 Airport Improvement Program 20.106 3-12-0142-012-2018 2,141,904 Airport Improvement Program 20.106 3-12-0142-013-2019 153,404 COVID-19 -Airport Improvement Program 20.106 3-12-0031-014-2020 27,883 Total CFDA 2,527,336 Federal Transit Administration (FTA): Public Transportation Emergency Relief Program 20.527 FL-2019-025-00 58,303 Federal Transit Cluster: Federal Transit Formula Grants 20.507 FL-90-X766-00 61,486 Federal Transit Formula Grants 20.507 FL-95-XO62-00 9,500 Federal Transit Formula Grants 20.507 FL-95-XO85-00 20,726 Federal Transit Formula Grants 20.507 FL-2016-056-00 28,971 Federal Transit Formula Grants 20.507 FL-2017-035-00 152,374 Federal Transit Formula Grants 20.507 FL-2017-044-00 309,592 Federal Transit Formula Grants 20.507 FL-2017-055-00 32,900 Federal Transit Formula Grants 20.507 FL-2018-034-00 24,930 Federal Transit Formula Grants 20.507 FL-2018-098-00 343,487 Federal Transit Formula Grants 20.507 FL-2019-088-00 1,727,695 COVID-19 - Federal Transit Formula Grants 20.507 FL-2020-046-00 635,531 Total CFDA 3,347,192 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL-2018-084-00 98,044 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL 2019-097-00 59,481 Pass -Through Programs: Florida Department of Transportation: Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G0015 199,509 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 GOA60 175,817 Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 GOL50 146,131 Total CFDA 678,982 Total Federal Transit Cluster 4,026,174 (Continued) 180 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS -THROUGH ENTITY CSFA GRANT / CONTRACT FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER Highway Planning and Construction Cluster: Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Highway Planning and Construction Total CFDA Total Highway Planning and Construction Cluster Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research Metropolitan Transportation Planning and State and Non -Metropolitan Planning and Research Total CFDA Formula Grants for Rural Areas and Tribal Transit Program Formula Grants for Rural Areas and Tribal Transit Program COVID-19 - Formula Grants for Rural Areas and Tribal Transit Program Total CFDA Transit Services Programs Cluster: Enhanced Mobility of Seniors and Individuals with Disabilities Enhanced Mobility of Seniors and Individuals with Disabilities Enhanced Mobility of Seniors and Individuals with Disabilities Total CFDA Total Transit Services Programs Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Direct Programs: Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Pass -Through Programs: Executive Office of the Governor - Florida Division of Emergency Management: COVID-19 - Coronavirus Relief Fund Florida Housing Finance Corporation: COVID-19 - Coronavirus Relief Fund Total CFDA Total U.S. Department of the Treasury 20.205 GOL51 20.205 GOL52 20.205 GOL53 20.205 GOL54 20.205 GOL55 20.205 GOL59 20.205 GOS32 20.205 GOY70 20.205 G1 M49 20.505 G0581 20.505 G1619 20.505 G1J00 20.509 G1561 20.509 G1 F49 20.509 G1 M55 20.513 435210-1-93-14 20.513 435210-1-93-15 20.513 435210-1-93-16 21.015 1 RDCGR060041-01-00 TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 84,059 $ 429,054 609,819 698,270 7,489 5,083 437,838 1,031,936 194,210 3,497,758 3,497,758 167,710 114,436 27,924 310,070 73,783 484,276 330,425 888,484 245,251 267,555 394,504 907,310 907,310 12,215,435 480,455 21.019 Y2265 2,495,518 21.019 045-2020 163 2,495,681 2,976,136 (Continued) 181 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS -THROUGH ENTITY CSFA GRANT / CONTRACT FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER Gulf Coast Ecosystem Restoration Council Pass -Through Programs: The Gulf Consortium: Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program Total Gulf Coast Ecosystem Restoration Council Election Assistance Commission Pass -Through Programs: Florida Department of State: Help America Vote Act Requirements Payments 2018 HAVA Election Security Grants COVID-19 - 2018 HAVA Election Security Grants Total CFDA Total Election Assistance Commission U.S. Department of Health and Human Services Pass -Through Programs: Florida Department of Elder Affairs - Area Agency on Aging for Southwest Florida, Inc.: Aging Cluster: Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers COVID-19 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers Total CFDA Special Programs for the Aging, Title III, Part C, Nutrition Services Special Programs for the Aging, Title III, Part C, Nutrition Services COVID-19 - Special Programs for the Aging, Title III, Part C, Nutrition Services COVID-19 - Special Programs for the Aging, Title III, Part C, Nutrition Services Total CFDA Nutrition Services Incentive Program Nutrition Services Incentive Program Total CFDA Total Aging Cluster National Family Caregiver Support, Title III, Part E National Family Caregiver Support, Title III, Part E COVID-19 - National Family Caregiver Support, Title III, Part E Total CFDA Low -Income Home Energy Assistance Low -Income Home Energy Assistance Total CFDA TRANSFERS TO EXPENDITURES SUBRECIPIENTS 87.052 200097221.01 $ 22,862 $ 22,862 90.401 2018-2019-0003-CLL 34,587 90.404 2019-2020-0001-COLLIER 44,959 90.404 2020-001-CLL 269,900 314,859 349,446 93.044 OAA 203.19 141,614 93.044 OAA 203.20 169,926 93.044 CARES 203.20 97,825 409,365 93.045 OAA 203.19 148,616 93.045 OAA 203.20 213,077 93.045 OAA 203.20 210,664 93.045 CARES 203.20 133,245 705,602 93.053 OAA 203.19 9,296 93.053 OAA 203.20 38,457 47,753 1,162,720 93.052 OAA 203.19 56,663 93.052 OAA 203.20 69,832 93.052 CARES 203.20 37,808 164,303 93.568 EHEAP 203.18 (45) 93.568 EHEAP 203.19 18,324 18,279 (Continued) 182 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL / STATE AGENCY PASS -THROUGH ENTITY FEDERAL PROGRAM / STATE PROJECT CFDA / CSFA NUMBER FEDERAL AWARD IDENTIFICATION / GRANT / CONTRACT NUMBER EXPENDITURES TRANSFERS TO SUBRECIPIENTS Florida Department of Revenue: Child Support Enforcement 93.563 COC11 $ 158,794 $ Total U.S. Department of Health and Human Services 1,504,096 Corporation for National and Community Service Direct Programs: Retired and Senior Volunteer Program 94.002 18SRSFL005 62,016 Total Corporation for National and Community Service 62,016 U.S. Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G18MI0015A 31,559 High Intensity Drug Trafficking Areas Program 95.001 G19MI0015A 185,765 High Intensity Drug Trafficking Areas Program 95.001 G20MI0015A 17,067 Total U.S. Executive Office of the President 234,391 U.S. Department of Homeland Security Pass -Through Programs: Executive Office of the Governor - Florida Division of Emergency Management: Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 Z0001 17,026,663 Emergency Management Performance Grants 97.042 G0042 108,275 Homeland Security Grant Program 97.067 18-DS-X1-09-21-23-165 23,593 Homeland Security Grant Program 97.067 19-DS-01-09-18-02-281 15,910 Homeland Security Grant Program 97.067 19-DS-01-09-21-02-211 39,674 Homeland Security Grant Program 97.067 R0121 428,574 Total CFDA 507,751 Total U.S. Department of Homeland Security 17,642,689 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 40,034,457 $ 2,264,994 (Continued) 183 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS -THROUGH ENTITY CSFA GRANT / CONTRACT FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER Florida Executive Office of the Governor Direct Projects: Emergency Management Programs Total Florida Executive Office of the Governor Florida Department of Environmental Protection Direct Projects: Beach Management Funding Assistance Program Beach Management Funding Assistance Program Beach Management Funding Assistance Program Beach Management Funding Assistance Program Beach Management Funding Assistance Program Total Florida Department of Environmental Protection Florida Housing Finance Corporation Direct Projects: State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) Total Florida Housing Finance Corporation Florida Department of State and Secretary of State Direct Projects: State Aid to Libraries State Aid to Libraries State Aid to Libraries Total CSFA Historic Preservation Grants Total Florida Department of State and Secretary of State Florida Department of Transportation Direct Projects: Aviation Grant Programs Aviation Grant Programs Aviation Grant Programs Aviation Grant Programs Aviation Grant Programs Total CSFA Public Transit Block Grant Program Public Transit Block Grant Program Total CSFA Public Transit Service Development Program Local Transportation Projects 31.063 A0002 TRANSFERS TO EXPENDITURES SUBRECIPIENTS $ 104,585 $ 104,585 37.003 14CO1 1,110,184 37.003 16CO1 6,595 37.003 19CO1 13,450 37.003 19CO2 1,722,078 37.003 19CO3 244,943 3,097,250 40.901 Collier County FY 2015-2016 (970) 40.901 Collier County FY 2016-2017 946,368 40.901 Collier County FY 2017-2018 1,129,755 40.901 Collier County FY 2017-2018 DR 138,130 40.901 Collier County FY 2018-2019 746,378 40.901 Collier County FY 2019-2020 26,383 2,986,044 45.030 16-ST-08 11,715 45.030 17-ST-08 137,116 45.030 18-ST-08 93,730 242,561 45.031 20.h.sm.100.020 50,000 292,561 55.004 GOE50 2,432,531 55.004 G0O39 258 55.004 G0O51 6,969 55.004 GOZ12 348,618 55.004 G1643 127,517 2,915,893 55.010 G1577 395,017 55.010 G1 F92 666,116 1,061,133 55.012 G0575 29,978 55.039 GOT26 126,915 (Continued) 184 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE For The Fiscal Year Ended September 30, 2020 FEDERAL AWARD FEDERAL / STATE AGENCY CFDA / IDENTIFICATION / PASS -THROUGH ENTITY CSFA GRANT/CONTRACT TRANSFERS TO FEDERAL PROGRAM / STATE PROJECT NUMBER NUMBER EXPENDITURES SUBRECIPIENTS Pass -Through Projects: Florida Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G1A20 $ 600,058 $ Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G1A93 71,206 Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G1 N34 169,758 Total CSFA 841,022 Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G1828 27,016 Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G1 N26 5,133 Total CSFA 32,149 Total Florida Department of Transportation 5,007,090 Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 60.115 LHZ54 368,882 353,260 Total Florida Department of Children and Families 368,882 353,260 Florida Department of Health Direct Projects: Emergency Medical Services (EMS) Matching Awards 64.003 M7006 78,352 - County Grant Awards 64.005 C8011 22,943 Total Florida Department of Health 101,295 Florida Department of Elder Affairs Pass -Through Projects: Area Agency on Aging for Southwest Florida, Inc.: Home Care for the Elderly 65.001 HCE 203.19 10,275 Home Care for the Elderly 65.001 HCE 203.20 5,931 Total CSFA 16,206 Alzheimer's Respite Services 65.004 ADI 203.19 370,044 Alzheimer's Respite Services 65.004 ADI 203.20 63,734 Total CSFA 433,778 Community Care for the Elderly 65.010 CCE 203.19 745,217 Community Care for the Elderly 65.010 CCE 203.20 176,988 Total CSFA 922,205 Total Florida Department of Elder Affairs 1,372,189 - TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE $ 13,329,896 $ 353,260 185 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Year Ended September 30, 2020 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the Schedule) includes the Federal and State grant activity for Collier County, Florida (the County) and is presented on the modified accrual basis of accounting for expenditures accounted for in the governmental funds and the accrual basis of accounting for expenditures in proprietary funds. Under the modified accrual basis, revenue is recognized if it is both measurable and available for use during the fiscal year and expenditures are recognized in the period liabilities are incurred, if measurable. Under the accrual basis, expenditures are recognized in the period liabilities are incurred. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Section 215.97, Florida Statutes, with the exception of CFDA 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in the Schedule may differ from amounts presented, or used in the preparation of, the basic financial statements for the fiscal year ended September 30, 2020. 2. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures or expenses are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. 3. Indirect Cost Rate The County has not elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance. 4. Negative Figures on the Schedule of Expenditures Negative expenditures reported in the Schedules of Expenditures of Federal Awards and State Financial Assistance are a result of corrections which reduced expenditures in one grant and increased expenditures in another grantor funding source. Although the current expenditures on a grant may be negative, the total of all expenditures on the grant is expected to be positive over its total period of performance. 5. Disaster Grants - Public Assistance (Presidentially Declared Disasters) (97.036) After a presidentially declared disaster, FEMA provides Disaster Grants — Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) to reimburse eligible costs associated with debris removal, emergency protective measures and the repair, restoration, reconstruction or replacement of public facilities or infrastructure damaged or destroyed. Reimbursements are provided in the form of cost -shared grants. Hurricane Irma (FEMA-4337-DR) made landfall in Collier County on September 10, 2017. In 2020, $14 million eligible expenditures were incurred in 2017 through 2019 and are included in the Schedule. 186 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2020 Section I — Summary of Auditors' Results Financial Statements 1. Type of auditors' report issued: Unmodified 2. Internal control over financial reporting: • Material weakness(es) identified? X yes no • Significant deficiency(ies) identified? yes X none reported 3. Noncompliance material to financial statements noted? yes X no Federal Awards 1. Internal control over major federal programs: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified? yes X none reported 2. Type of auditors' report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes X no Identification of Major Federal Programs CFDA Number(s) 21.019 14.218 20.205 Name of Federal Program or Cluster Coronavirus Relief Fund CDBG — Entitlement Grants Cluster Highway Planning and Construction Cluster Dollar threshold used to distinguish between Type A and Type B programs: $ 1,201,034 Auditee qualified as low -risk auditee? X yes no 187 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2020 Section I — Summary of Auditors' Results (Continued) State Financial Assistance 1. Internal control over state projects: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weakness(es)? 2. Type of auditors' report issued on compliance for state projects: 3. Any audit findings disclosed that are required to be reported in accordance with state requirements? Identification of Major State Projects CSFA Number(s) 40.091 55.004 55.010 Dollar threshold used to distinguish between Type A and Type B state projects: Unmodified yes X no yes X none reported yes X no Name of State Project State Housing Initiatives Partnership Program (SHIP) Aviation Grants Program Public Transit Block Grant Program $ 750,000 0 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2020 Section 11 — Financial Statement Findings 2020-001 Audit Adjustment Material Weakness in Internal Control over Financial Reporting Criteria: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework states that control activities are a component of internal control. Control activities are policies and procedures established to ensure that management directives are carried out, and consist of two elements, a policy that establishes what should be done and the procedure that implements the policy. COSO Framework states that control activities must be in place for there to be adequate internal control procedures over financial reporting. Internal control procedures affect the County's ability to ensure financial transactions are authorized and accurate. County management is responsible for establishing and maintaining internal controls for the proper recording of all the County's transactions, including year- end accruals. Condition: As part of the audit, we proposed an audit adjustment to correct an error related to accounts payable and expenditures in the Infrastructure Sales Tax Fund for the amount of $1,932,242. The correction was related to the fiscal year 2021 expenditures that were recorded in fiscal year 2020. Cause: The County's internal controls did not detect or prevent the error. Effect: The proposed audit adjustment was recorded by management to correct the financial statements. Recommendation: We recommend that the County's management strengthen policies and procedures over review of invoices recorded in all County departments to ensure that all vendor invoices received after year-end are properly accounted for in the appropriate period in which the service occurred or the goods were received. Views of Responsible Officials and Corrective Action: The original vendor invoice submitted included a schedule of values for the period through September 30, 2020. When this invoice was reviewed for accrual, staff relied on that documentation and determined the invoice needed to be accrued. Subsequently, the vendor submitted a revised schedule of values with a corrected period of service through October 31, 2020. To ensure vendor invoices are accounted for in the appropriate period, Management will add the period of service or delivery date to the master accrual spreadsheet and to each accrual lead schedule. This will identify multiple accruals for the same period as well as assist in identifying missing accruals. :• COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2020 Section 111— Findings and Questioned Costs — Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). 190 COLLIER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2020 Section IV — Findings and Questioned Costs — Major State Projects Our audit did not disclose any matters required to be reported in accordance with Rule 10.554(1)(1)4, Rules of the Florida Auditor General. 191 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ CliftonLarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Board of County Commissioners Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, (County) as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated April 27, 2021. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; Independent Auditors' Report on Compliance for Each Major Federal Program and State Project and Report on Internal Control over Compliance; Schedule of Findings and Questioned Costs; and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports and schedule, which are dated April 27, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l ., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. This information is included in the notes to the basic financial statements. �A member of Nexia International Honorable Board of County Commissioners Collier County, Florida Financial Condition and Management Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the County met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the County did not meet any of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the County. It is management's responsibility to monitor the County's financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Special District Component Units Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we did not note any special district component units that failed to provide the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. ZZ->7? Clifton LarsonAllen LLP Naples, Florida April 27, 2021 CliftonLarsonAllen LLP @AW CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida's (County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2020. Management of the County is responsible for the County's compliance with the specified requirements. Our responsibility is to express an opinion on the County's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County's compliance with specified requirements. In our opinion, the County complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds and Section 365.172(10) and 365.173(2) (d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2020. This report is intended solely for the information and use of the County and the Auditor General, state of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. LLB Clifton LarsonAllen LLP Naples, Florida April 27, 2021 A member of CO\ Nexia International 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2020. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ TABLE 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2020 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes $ 375,613,873 Governmental Impact Fees 42,284,302 Half Cent Sales Tax 45,227,690 Developmental Fees 28,263,326 State Revenue Sharing 11,707,422 5th Cent Local Option Gas Tax 5,712,273 6th Cent Local Option Gas Tax 7,561,182 Constitutional Gas Tax 4,273,043 Seventh Cent Gas Tax 1,864,211 Ninth Cent Gas Tax 1,594,153 Parks and Recreation Fees 4,081,770 Tourist Development Tax 26,062,312 Court Facilities Fees 854,099 Communications Services Tax 4,061,901 Total bondable revenues $ 559,161,557 Fiscal 2020 governmental debt service requirements: Series 2012 Gas Tax Bonds Principal: $ 3,280,000 Interest: 593,650 Series 2014 Gas Tax Bonds Principal: 7,890,000 Interest: 1,584,545 Series 2010 Special Obligation Bonds Principal: 2,165,000 Interest: 70,363 Series 2010B Special Obligation Bonds Principal: 2,460,000 Interest: 269,600 Series 2011 Special Obligation Bonds Principal: 6,475,000 Interest: 2,176,881 Series 2013 Special Obligation Bonds Principal: - Interest: 2,846,975 Series 2017 Special Obligation Bond Principal: 262,000 Interest: 1,339,361 Series 2019 Special Obligation Bond Principal: - Interest: 540,326 Series 2018 Tourist Development Tax Bonds Principal: 1,150,000 Interest: 2,745,250 Commercial Paper Program Principal: 400,000 Interest: 228,547 Total fiscal 2020 governmental debt service requirements $ 36,477,498 Governmental debt ratio of fiscal year 2020 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 6.5% Notes: Debt service is based upon current amortization tables for the fiscal year indicated. Debt prepayments, if any, are not included as debt service requirements TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2020 Collier County Water and Sewer District: Total Sales Revenues $ 158,904,501 Miscellaneous Revenues 3,797,319 Total Operating Revenues 162,701,820 Non -Operating Revenues 6,742,185 Gross Revenues 169,444,005 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization) 100,866,414 Net Revenues Available for Debt Service (1) $ 68,577,591 Total Fiscal Year 2020 Debt Service on Bonds (2) $ 12,573,068 Net Revenues Debt Service Coverage on Bonded Debt (100% Required) - (1/2) 545% Other Pledged Funds: System Development Fees (Impact Fees) $ 16,324,503 Total Pledged Funds Available for Debt Service (3) $ 84,902,094 Total Fiscal Year 2020 Debt Service on Bonds (4) $ 12,573,068 Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) - (3/4) 675% Total Pledged Funds Available for Debt Service After Payment of Bonds (5) $ 72,329,026 Total Fiscal Year 2020 Debt Service on Subordinated Indebtedness (6) $ 10,261,368 Calculated Coverage on Subordinated Indebtedness - (5/6) 705% Total Pledged Funds Available for System Purposes $ 62,067,658 Notes: Coverage calculations utilitize definitions of Gross Revenues, Net Revenues, System Development Fees and Pledged Funds established in Resolution CWS 85-5, as Amended and Restated. F] Summary Debt Statement for Fiscal Year 2020 General Governmental Debt: While the Florida State Constitution and the Florida Statutes set no legal debt limit at the local level, prudent fiscal management requires a self-imposed level of restraint. Collier County's Debt Policy sets the maximum allowable governmental debt ratio at 13.0%, and the County continues to operate below this threshold. The governmental debt ratio is the ratio of debt service requirements to total bondable revenues, as defined by Collier County's Debt Policy. It should be noted that while ad valorem taxes are bondable for purposes of the governmental debt ratio calculation, they may only be pledged pursuant to voter referendum. The governmental debt ratio increased by .5% for the fiscal year ended September 30, 2020, to 6.5% (see Table 1), or half of the allowable ratio. This increase is reflective of a 9.3% increase in debt service related to the Series 2018 Tourist Development Tax Revenue Bonds and the Series 2019 Special Obligation Revenue Loan. Overall governmental revenues, even during the COVID-19 pandemic, only decreased marginally. Certain revenues, some directly impacted by the pandemic such as parks and recreation fees and tourist development taxes, and governmental impact fees (non -water and wastewater) did show substantial decreases, but these were largely offset by a 5.6% increase in ad valorem collections. Aggressive debt restructuring over the last ten years, coupled with the growth of general governmental revenues, produced several consecutive years of decreases in the general governmental debt ratio. The trend in the governmental debt ratio is shown in the table below: Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY13 - FY20) 14.00% 12.00% 10.00% 9.4% 8.00% 7.0% 6.00% 4.00% 2.00% 0.00% 13.0% 6.5% 6.5% 6.0% 6.0% FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 3 Summary of Existing and Newly Issued General Government Debt Existing General Government Debt The following table lists outstanding General Governmental Debt as of September 30, 2020: Issue Amount Interest Rates Final Maturity Purpose Series 2010B Special $5,160,000 4.00% - 5.00% October 1, 2021 Advance refund Series 2002 Obligation Refunding Capital Improvement Revenue Revenue Bonds Bonds. Series 2011 Special $46,165,000 3.00% - 5.00% October 1, 2029 Advance refund portions of the Obligation Refunding Series 2003 and 2005 Capital Revenue Bonds Improvement and Refunding Revenue Bonds. Series 2013 Special $73,805,000 3.50% - 4.00% October 1, 2035 Advance refund remaining Obligation Refunding portions of the Series 2003 and Revenue Bonds 2005 Capital Improvement and Refunding Revenue Bonds. Series 2017 Special $43,083,000 3.09% July 1, 2034 Advance refund a portion of the Obligation Refunding Series 2010 Special Obligation Revenue Note (Term Loan) Revenue Bonds. Series 2019 Special $28,060,000 2.74% October 1, 2029 Fund the purchase of the Golden Obligation Revenue Note Gate Golf Course. (Taxable Term Loan) Series 2012 Gas Tax $10,820,000 3.00% - 5.00% June 1, 2023 Advance refund Series 2003 Gas Refunding Revenue Bonds Tax Revenue Bonds. Series 2014 Gas Tax $51,015,000 2.33% June 1, 2025 Advance refund a portion of the Refunding Revenue Bond Series 2005 Gas Tax Revenue (Term Loan) Bonds. Series 2018 Tourist $61,815,000 4.00% - 5.00% October 1, 2048 Fund the construction and Development Tax Revenue equipping of a regional Bonds tournament caliber amateur sports complex. Florida Local Government $11,100,000 1.26% - 2.49% June 6, 2023 Fund the purchase of land for the Pooled Commercial Paper amateur sports complex. Program New General Government Debt Collier County issued no new general governmental debt during FY-2020. Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 4/l/2021) Fitch Moody's Standard & Poor's Gas Tax Revenue Bonds AA- A2 A+ Special Obligation Bonds AA Aal AAA Tourist Development Tax Bonds* AA+ Aa3 - * Standard & Poor's does not currently rate the Tourist Development Tax Bonds. A rating of AA by Fitch Ratings denotes the expectations of very low default risk and indicates very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events. Fitch also uses intermediate +/- modifiers for each AA category. A Moody's Investors Service rating of Aa is indicative of a high quality investment grade instrument with very low credit risk, whereas an A rating indicative of an upper -medium grade instrument subject to low credit risk. Moody's uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa and A ranges. Moody's also maintains an Issuer Credit Rating of Aaa for Collier County which indicates excellent overall credit worthiness. An obligation rated AAA has the highest rating assigned by Standard and Poor's Global Ratings. The obligor's capacity to meet its financial commitments on the obligation is extremely strong. An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher -rated categories. However, the obligor's capacity to meet its financial commitments on the obligation is still strong. Standard and Poor's Global Ratings also uses intermediate +/- modifiers for each category to indicate relative standing within the major rating categories. Collier County Enterprise Debt: Currently, the Collier County Water and Sewer District (District) is the only County enterprise activity with bonded debt outstanding. The Collier County Debt Policy does not set a maximum allowable enterprise debt ratio, but coverage requirements related to the District's debt are set by bond covenants. Net revenues, defined as operating revenues plus specific non -operating revenues less operating expenses, excluding depreciation, must cover senior lien bonded debt service at 100%. Total pledged funds, defined as net revenues plus impact fees and special assessments, if applicable, must cover senior lien bonded debt service at 125%. Net revenue coverage on senior lien bonded debt was 545% and total pledged funds coverage on senior lien bonded debt was 675% for FY-2020, down from 631% and 781%, respectively, for FY-2019. Bonded debt coverages decreased primarily due to a 21.4% increase in debt service when compared to FY- 2019. The Series 2019 Water and Sewer Revenue Bonds were issued mid -year in fiscal year 2019. Fiscal year 2020 was the first full year the Series 2019 Bonds were outstanding and this resulted in an increase in interest paid. The District's calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, increased from 659% to 705% (see Table 2) reflecting a decrease in subordinated debt service. The total pledged funds coverage required by the subordinated loan agreement is equivalent to 115% of total subordinated debt service in each fiscal year, after payment of bonded debt service. 5 User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. In July of 2018 the District's governing board adopted rate increases of 2.8% effective October 1, 2018, 2.9% effective October 1, 2019 and 2.9% effective October 1, 2020, for fiscal years 2019, 2020 and 2021, respectively. The District's current focus is the optimization of resources, risk -based prioritization of capital projects and infrastructure expansion in the northeast service area to serve future residents and businesses. Existing Ente1prise Debt The following table lists outstanding Enterprise Debt as of September 30, 2020: Issue Amount Interest Rates Final Maturity Purpose Series 2013 Water and Sewer $1,442,962 1.47% July 1, 2021 Refund Series 2003B Water and Refunding Revenue Bond Sewer Refunding Revenue (Bank Term Loan) Bonds. Series 2015 Water and Sewer $7,283,000 1.75% July 1, 2022 Advance refund a portion of the Refunding Revenue Bond Series 2006 Water and Sewer (Bank Term Loan) Revenue Bonds. Series 2016 Water and Sewer $48,105,000 5.00% July 1, 2036 Refund remaining portion of the Refunding Revenue Bonds Series 2006 Water and Sewer Revenue Bonds. Series 2016 Water and Sewer $59,549,000 1.80% July 1, 2029 Refund all outstanding State Refunding Revenue Note Revolving Fund Loans. (Subordinated) Series 2018 Water and Sewer $29,890,000 2.41% July 1, 2029 Fund the purchase of water and Revenue Bond (Bank Term wastewater facilities within the Loan) Golden Gate Community. Series 2019 Water and Sewer $76,185,000 3.00% - 5.00% July 1, 2039 Fund utility improvements in the Revenue Bonds northeast area of the District. New Enterprise Debt Collier County issued no new enterprise debt during FY-2020. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 4/l/2021) Fitch Moody's Standard & Poor's* Water and Sewer Revenue Bonds AAA Aaa - * Standard & Poor's does not currently rate County Water and Sewer Revenue Bonds. A rating of AAA by Fitch Ratings denotes the lowest expectation of default risk. A rating of AAA is only assigned in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. A Moody's Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Supplemental Reports Year Ended September 30, 2020 Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Other Reports Year Ended September 30, 2020 Contents Independent Auditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — GovernmentalFunds................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual— General Fund.............................................................................................................6 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Court Services Fund..................................................................................................7 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual — Other Special Revenue Fund.....................................................................................8 Statement of Fiduciary Net Position — Agency Funds................................................................9 Notes to Financial Statements...................................................................................................10 Supplementary Information Combining Statements of Fiduciary Net Position — All Agency Funds...................................25 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.........................................26 ManagementLetter...................................................................................................................28 Independent Accountants' Report .............................................................................................30 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements as listed in the table of contents. Management's Responsibilityfor the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 0 A member of �Nexia International Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk as of September 30, 2020, and the respective changes in financial position and budgetary comparisons for the General Fund, Court Services Fund and Other Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund and the aggregate remaining fund information only for that portion of the major funds and the aggregate remaining fund information of Collier County, Florida that is attributable to the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk's basic financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 2 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 5, 2021, on our consideration of the Clerk's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Clerk's 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 Clerk's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 5, 2021 3 Collier County, Florida Clerk of the Circuit Court and Comptroller Balance Sheet — Governmental Funds Assets Cash and cash equivalents Accounts receivable, net Due from Collier County, Florida Board of County Commissioners Due from other governments Total assets Liabilities and fund balances Liabilities: September 30, 2020 Other Total Court Special Governmental General Services Revenue Funds $ 1,450,515 $ 1,377,579 $ 5,671,252 $ 8,499,346 11,442 - - 11,442 3,104 - - 3,104 9,223 26,420 - 35,643 $ 1,474,284 $ 1,403,999 $ 5,671,252 $ 8,549,535 Vouchers payable and accrued liabilities $ 546,804 $ 139,120 $ 24,260 $ 710,184 Due to Collier County, Florida Board of County Commissioners 224,519 - - 224,519 Due to other governments - 1,111,879 - 1,111,879 Deferred revenue - 153,000 - 153,000 Deposits 702,961 - - 702,961 Total liabilities 1,474,284 1,403,999 24,260 2,902,543 Fund balance: Restricted - - 5,646,992 5,646,992 Total fund balance - - 5,646,992 5,646,992 Total liabilities and fund balance $ 1,474,284 $ 1,403,999 $ 5,671,252 $ 8,549,535 See accompanying Notes to Financial Statements. 4 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds Year Ended September 30, 2020 Revenues: Intergovernmental Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess fees to State of Florida Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balance Fund balances — beginning of year Fund balances — end of year Other Total Court Special Governmental General Services Revenue Funds $ - $ 446,545 $ - $ 446,545 3,641,909 6,475,135 1,366,682 11,483,726 1,542 - - 1,542 61,974 30,986 32,142 125,102 3,705,425 6,952,666 1,398,824 12,056,915 8,614,242 5,532,341 442,370 14,588,953 2,118,775 487,538 - 2,606,313 632,045 - - 632,045 28,150 - - 28,150 740 - - 740 11,393,952 6,019,879 442,370 17,856,201 (7,688,527) 932,787 956,454 (5,799,286) 32,946 - - 32,946 7,880,100 - - 7,880,100 - (932,787) - (932,787) (224,519) - - (224,519) 7,688,527 (932,787) - 6,755,740 956,454 956,454 4,690,538 4,690,538 $ - $ - $ 5,646,992 $ 5,646,992 See accompanying Notes to Financial Statements. 5 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual General Fund Year Ended September 30, 2020 Revenues: Charges for services Miscellaneous Interest income Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Debt Service Principal Debt Service Interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 3,056,600 $ 3,456,600 $ 3,641,909 $ 185,309 - - 1,542 1,542 66,000 66,000 61,974 (4,026) 3,122,600 3,522,600 3,705,425 182,825 8,703,000 8,626,322 8,614,242 12,080 2,009,200 2,172,878 2,118,775 54,103 290,500 603,500 632,045 (28,545) - - 28,150 (28,150) - - 740 (740) 11,002,700 11,402,700 11,393,952 8,748 (7,880,100) (7,880,100) (7,688,527) 191,573 32,946 32,946 7,880,100 7,880,100 7,880,100 - (224,519) (224,519) 7,880,100 7,880,100 7,688,527 (191,573) See accompanying Notes to Financial Statements. 6 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Court Services Fund Year Ended September 30, 2020 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 435,309 $ 435,309 $ 446,545 $ 11,236 Charges for services 6,481,308 5,683,250 6,475,135 791,885 Interest income 47,000 43,900 30,986 (12,914) Total revenues 6,963,617 6,162,459 6,952,666 790,207 Expenditures: General government: Personal services 6,198,408 5,601,450 5,532,341 69,109 Operating expenditures 765,209 561,009 487,538 73,471 Total expenditures 6,963,617 6,162,459 6,019,879 142,580 Excess of revenues over expenditures - - 932,787 932,787 Other financing uses: Transfers out: Distribution of excess fees to State of Florida - - (932,787) (932,787) Total other financing uses - - (932,787) (932,787) Net change in fund balance - - - - Fund balance — beginning of year - - - - Fund balance — end of year $ - $ - $ - $ - See accompanying Notes to Financial Statements. 7 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget and Actual Other Special Revenue Fund Year Ended September 30, 2020 Variance With Final Budget Budget Positive Original Final Actual (Negative) Revenues: Charges for services $ 1,100,000 $ 1,100,000 $ 1,366,682 $ 266,682 Interest income 70,000 70,000 32,142 (37,858) Total revenues 1,170,000 1,170,000 1,398,824 228,824 Expenditures: General government: Personal services 1,105,400 1,105,400 442,370 663,030 Operating expenditures 1,598,100 1,628,100 - 1,628,100 Capital outlay - 507,000 - 507,000 Total expenditures 2,703,500 3,240,500 442,370 2,798,130 Net change in fund balance (1,533,500) (2,070,500) 956,454 3,026,954 Fund balance — beginning of year 4,058,861 4,100,799 4,690,538 589,739 Fund balance — end of year $ 2,525,361 $ 2,030,299 $ 5,646,992 $ 3,616,693 See accompanying Notes to Financial Statements. 8 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Fiduciary Net Position Agency Funds September 30, 2020 Assets Cash and cash equivalents $ 21,037,834 Total assets $ 21,037,834 Liabilities Due to the Collier County, Florida Board of County Commissioners $ 309,027 Due to other governments 1,338,231 Deposits 19,390,576 Total liabilities $ 21,037,834 See accompanying Notes to Financial Statements. 9 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk) is an elected constitutional officer as provided for by the Constitution of the State of Flofida. The Clerk's Budget is presented pursuant to Chapter 218, Florida Statutes. Additionally, a budget is submitted to the Florida Clerks of Court Operations Corporation for the Court Services Fund. The financial statements presented include the general fund, special revenue funds, and agency funds of the Clerk's office. The accompdnying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Clerk, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Clerk is considered to be financially accountable. The general operations of the Clerk are funded by: fees from third parties, transfer in lieu of fees from the Collier County, Florida Board of County Commissioners (Board), appropriations from the State of Florida, and interest income. Pursuant to Chapter 218 Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Clerk's general fund. Court -related operations are funded by the collection of fines, fees costs and service charges and a child support grant. Any surplus of revenues after expenditures in this fund is remitted to the State in January of the next year. Special revenue funds are retained by the Clerk and budgeted according to requirements of each source. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Clerk. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 10 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Clerk reports the following major governmental funds: General Fund —The general fund is used to account for all revenue and expenditures applicable to the general operations of the Clerk, which are not accounted for in another fund. All operating revenue not specifically restricted or designated as to use, is recorded in the general fund. Court Services Fund — The court services fund is a special revenue fund established to account for court -related filing fees, service charges, fines, court costs, appropriations and expenses of the Clerk as mandated by Section 28.35, Florida Statutes. Other Special Revenue Fund — The other special revenue fund is a special revenue fund used to account for revenues mandated by Section 28.24(12)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for equipment and maintenance of equipment, personnel training, and technical assistance in modernizing the public records system of the office; and revenues mandated by Section 28.24(12)(e) and Section 28.37(5), Florida Statutes, to be used exclusively for funding court -related technology needs. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Charges for services, interest income, and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk's activities are classified as court -related and non -court -related. The Clerk's general fund activity, which is classified as non -court -related, is funded through service charges for recording instruments and documents into the official records, interest income and through transfers in from the Board of County Commissioners. 11 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures for the general fund be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenues were recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds — Agency Funds — Agency funds are used to account for assets held by the Clerk in a trustee capacity or as an agent for individuals, private organizations, other governments, and other funds. The agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the full accrual basis of accounting. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Clerk does not currently hold investments. Compensated Absences All full-time employees of the Clerk are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave (with limited exceptions per the employee manual). Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation leave and sick leave are included in governmental funds when the payments are made to employees. The Clerk is not legally required to accumulate financial resources for these un-matured obligations. Accordingly, the liability for compensated absences is not reported in the Clerk's funds, but rather is reported in the basic financial statements of Collier County, Florida. 12 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Prepaid Expenses The Clerk has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. Use of Estimates The preparation of these financial statements requires management of the Clerk to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ slightly from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. There were no non -spendable fund balances at the Clerk as of September 30, 2020. Spendable fund balances are classified based on a hierarchy of the Clerk's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Clerk's fund balances for the special revenue funds fall into the spendable restricted category. Fund balances maintained in the special revenue funds are restricted pursuant to certain Florida Statutes and have been presented as restricted fund balances in the fund financial statements in accordance with GASB Statement No. 54. 13 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Clerk considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the Clerk considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Clerk has provided otherwise in its commitment or assignment actions. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Clerk's annual budget. The Clerk prepares and approves the budget for the Clerk's non -court functions, including special revenue fund and the budget related to the recording function based on anticipated fees. The budget of the Clerk for services to the Board is submitted to the Board. Pursuant to Section 28.36, Florida Statutes, a balanced court -related budget must be prepared on or before June 1 (for the period starting the next October 1 through September 30) and submitted to the Florida Clerks of Court Operations Corporation (Corporation). If the Clerk estimates that projected revenues are insufficient to meet anticipated expenditures, the Clerk must report the revenue deficit to the Corporation. Once the Corporation verifies the revenue deficit, the Clerk can increase fees up to the maximum amounts specified by law to resolve the deficit. If a deficit is still projected, a request can be submitted to release funds from the Department of Revenue Clerks of the Court Trust Fund. For the year ending September 30, 2020, the Clerk had sufficient revenues to meet expenditures. 14 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 2. Budgetary Process (continued) The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except for the classification and presentation of the distribution of excess court revenue to the State for the court services fund, which is treated as other financing use (transfer out) for budgetary purposes and as an expenditure in the statement of revenues, expenditures, and changes in fund balance in the court services fund. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Board approved transfer must be approved by the Board; amendments to the Clerk's fee budget are at the discretion of the Clerk, and any amendments that increase or decrease the court budget must be approved by the Corporation for the court services fund. Budgetary changes within the court services fund not affecting the overall budget are made at the discretion of the Clerk. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year. 3. Cash and Cash Equivalents At September 30, 2020, the carrying value of the Clerk's cash and cash equivalents was as follows: Type Maturity Cash on hand N/A Demand deposits N/A Total cash and cash equivalents Carrying Value $ 9,100 29,528,080 $ 29,537,180 Credit Rating N/A N/A The Clerk maintains a cash pool for the deposits of all governmental and agency funds. Each fund type's portion of these balances is presented as cash and cash equivalents in the accompanying financial statements. Interest income is allocated to each fund based on its proportionate balance in the pool. 15 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2020 are reported as $8,499,346 and $21,037,834 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2020, the Clerk's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Clerk's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Clerk to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Inter -local Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury, federal agencies and instrumentalities, or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Interest Rate Risk Investment of Clerk's funds is based on maintaining 24 hour liquidity. All Clerks funds are held in local banks or short term investment instruments. 16 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 4. Interest Income and Investment of County Funds Pursuant to Florida Statutes, Section 28.33, the Clerk invests all County funds in excess of those required to meet expenses. Interest income is allocated to each fund based on its proportionate balance in the pool. Interest income of $61,974 is reported in the general fund for the year ended September 30, 2020, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, Transfer- September 30, 2019 Additions Deductions out 2020 Capital assets depreciated: Machinery and equipment $ 6,523,860 $ 599,099 $ (201,442) $ (4,074) $ 6,917,443 Less accumulated depreciation (5,590,393) (488,027) 201,442 4,074 (5,872,904) Total capital assets depreciated 933,467 111,072 - - 1,044,539 Total capital assets, net $ 933,467 $ 111,072 $ - $ - $ 1,044,539 17 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 6. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2019 Additions Deletions 2020 Accrued compensated absences $ L931.145 $ 965A41 $ (807,3551 $ 2,089,231 Of these liabilities, $841,800 is expected to be paid during the fiscal year ending September 30, 2021. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. The Clerk leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Clerk's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Clerk are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2020, the Clerk entered into leases in the amount of $32,946. During the year ended September 30, 2020, the Clerk's payments of principal on leases totaled $28,150. 7. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State - administered retirement system in paying the costs of health insurance. M. Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 7. Pension Plans (continued) Background (continued) Essentially all regular employees of the Clerk are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward 19 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 7. Pension Plans (continued) Plan Description (continued) creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre - July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 20 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 7. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State - administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Clerk employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance 21 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 7. Pension Plans (continued) FRS Investment Plan (continued Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2020, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Clerk. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Clerk's contributions made to the plans during the years ended September 30, 2020, 2019, and 2018 were $1,138,484, $1,009,015, and $877,162, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the Collier County comprehensive annual financial report or County -wide financial statements. 22 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 8. Related Party Transactions The Board provided funding for the Clerk in the amount of $7,880,100. The Supervisor of Elections provided funding in the amount of a $47,000 fee for financial services performed by the Clerk. At September 30, 2020, the Clerk had a payable due to the Board of $533,546, comprised as follows: Distribution of excess fees $ 224,519 Agency funds due 309,027 Total due to Board of County Commissioners $ 533,546 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss, including, but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. During the year ended September 30, 2020, the Clerk was charged $2,442,415 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to the statutory limits for each injury and illness. The County also provides coverage for $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 % wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 23 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2020 10. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 11. Claims and Contingencies Litigation The Clerk is routinely involved as defendant, plaintiff and as a "party in interest" in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2020, the Clerk was involved in approximately 118,578 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 95 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are 15 active actions for foreclosure of property in which the Clerk has been a named defendant. In the opinion of the Clerk and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk. The Clerk's Office carries insurance to protect against loss. 24 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statements of Fiduciary Net Position All Agency Funds September 30, 2020 Jury and Clerk's Court Ordinary Agency Registry Witness Total Assets Cash and cash equivalents $ 6,855,717 $ 14,154,729 $ 27,388 $ 21,037,834 Total assets $ 6,855,717 $ 14,154,729 $ 27,388 $ 21,037,834 Liabilities Due to Collier County, Florida Board of County Commissioners $ 309,027 $ - $ - $ 309,027 Due to other governments 1,310,843 - 27,388 1,338,231 Deposits 5,235,847 14,154,729 - 19,390,576 Total liabilities $ 6,855,717 $ 14,154,729 $ 27,388 $ 21,037,834 25 0 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Clerk's basic financial statements, and have issued our report thereon dated January 5, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Clerk's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk's internal control. Accordingly, we do not express an opinion on the effectiveness of the Clerk's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of Nexia 26 International Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Compliance and Other Matters As part of obtaining reasonable assurance about whether the Clerk's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 5, 2021 27 CliftonLarson4en LLP . CLAconnect.com MANAGEMENT LETTER Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Clerk of the Circuit Court and Comptroller (Clerk), as of and for the fiscal year ended September 30, 2020 and have issued our report thereon dated January 5, 2021. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 5, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. �A member of Nexia 28 International Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Clerk and applicable management, and is not intended to be, and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 5, 2021 29 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida We have examined the Collier County, Florida Clerk of the Circuit Court and Comptroller's (Clerk) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets, during the year ended September 30, 2020. Management of the Clerk is responsible for the Clerk's compliance with the specified requirements. Our responsibility is to express an opinion on the Clerk's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Clerk complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Clerk complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk's compliance with specified requirements. In our opinion, the Clerk complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 61.181, Florida Statutes, regarding clerks of the courts alimony and child support payments; and Sections 28.35 and 28.36, Florida Statutes, regarding clerks of the courts performance standards and budgets during the year ended September 30, 2020. This report is intended solely for the information and use of the Clerk and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 5, 2021 A member of Nexia 30 International Collier County, Florida Property Appraiser Financial Statements and Supplemental Reports Year Ended September 30, 2020 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2020 Contents Independent Auditors' Report------- ---------------....... ............... ....... ........... ....... -----...... 1 Financial Statements Balance Sheet — General Fund----------------- ------.........---.---.--- ....-----.......--.---....... ........ --.3 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual — General Fund....................................................5 Notes to Financial Statements .... ...... .........................................................................................6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Peifoimed in Accordance with Governnrent Auditing Standards................................................................21 ManagementLetter-----------------------------------------------------------------------------------------------------------------------.23 Independent Accountants' Report.. ...... .........................................................................................25 C€iftonLarsonAllen LLP CLAconnect.com ]INDEPENDENT AUDITORS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Property Appraiser's 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. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. A member of Nexia International Honorable Abe Skinner Property Appraiser Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fiend of the Property Appraiser as of September 30, 2020, and the changes in financial position and budgetary comparison of its general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of the general fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to these matters. Other Matters Required Supplenaentary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing informatiolli. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 6, 2021 on our consideration of the Property Appraiser's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's 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 Property Appraiser's internal control over financial reporting and compliance. zz->� CliftonLarsonAllen LLP Naples, Florida February 6, 2021 2 Collier County, Florida Property Appraiser Balance Sheet — General Fund September 30, 2020 Assets Cash and cash equivalents $ 1,873,868 Total assets $ 1,873,868 Liabilities and fund balance Liabilities: Accounts payable and accrued expenses $ 130,553 Due to Collier County, Florida Board of County COMMI'ssioners 586,532 Due to other taxing districts 1,156,783 Total liabilities 1,873,868 Fund balance - Total liabilities and fund balance $ 1,873,868 See accompanying Notes to Financial Statements. 3 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2020 Revenues CorDnl'ssions and fees $ 9,597,644 Miscellaneous 7,404 Total revenues 9,605,048 Expenditures: General governnent: Personal services 6,214,810 Operating 1,508,917 Capital outlay 31,576 Debt service - principal 55,849 Debt service - interest 11,576 Total expenditures 7,822,728 Excess of revenues over expenditures 1,782,320 Other financing uses: Distilbutim of excess fees and commissions to Collier County, Florida Board of County Corninssioners (586,532) Distribution of excess fees and commissions to other governinental agencies (1,195,788) Total other financing uses (1,782,320) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year $ - See accompanying Notes to Financial Statements. 4 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2020 Revenues: Conunissions and fees Interest revenue Miscellaneous Total revenue s Expenditures: General government: Personal services Operating Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of revenues over expenditures Other financing uses: Distribution of excess fees to Collier County, Florida Board of County Conrrnissioners Distribution of excess commssions and fees to other governmental agencies Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Valance With Final Budget Budget Positive Original Final Actual (Negative) $ 8.423.695 $ 8,423,695 $ 8,423,735 $ 40 - - 7,404 7,404 8,423,695 8,423,695 8,431,139 7,444 6,595,833 6,595,933 6,214,810 381,023 1,792,862 1,792,862 1,490974 301,888 35,000 35,000 - 35,000 - - 55,849 (55,849) - - 11576 (11,576) 8,423,695 8,423,695 7,773,209 650,486 - - 657,930 657,930 See accompanying Notes to Financial Statements. - - (586,532) (586532) - - (71,398) (71,398) - - (657,930) (657,930) 5 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies The following is a summary of significant accounting principles and policies used in the preparation of the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser). Reporting Entity The Property Appraiser is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Property Appraiser is part of the primary government of the County. Although the Board and the Florida Department of Revenue approve the Property Appraiser's total operating budget, the Property Appraiser is responsible for the administration and the operation of the Property Appraiser's office. The Property Appraiser's financial statements include only the funds of the Property Appraiser's office. There are no separate legal entities (component units) for which the Property Appraiser is considered to be financially accountable. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Property Appraiser to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Property Appraiser. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Property Appraiser, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these fiinds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser's only governmental fund is the general fiend. The general fund is used to account for the general operations of the Property Appraiser. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest revenue and miscellaneous revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Property Appraiser's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental fuund of the Property Appraiser. 7 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use -transfer out in the accompanying financial statements. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Property Appraiser are allowed to accumulate an unlimited number of hours of unused sick leave and up to 200 hours of unused vacation leave. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service, not to exceed 1,040 hours. Vacation and sick leave payments are included in operating costs of the general fiord when the payments are made to the employees. The Property Appraiser does not, nor is legally required to, accumulate financial resources for these umnatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Property Appraiser, but rather is reported in the basic financial statements of Collier County, Florida. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends maintenance costs as they are incurred and does not allocate the cost between periods. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. i. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Property Appraiser's annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Property Appraiser's total budget must be approved by the Florida Department of Revenue. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. The Property Appraiser's budget is prepared under a budgetary basis of accounting that differs fiom generally accepted accounting principles (GAAP). Certain revenues received fiom non -ad valorem commissions, expenditures of such revenue, and other financing uses related to non -ad valorem revenue are not recognized under the budgetary basis of accounting; however, these items have been recognized under GAAP. 0 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revelries - budgetary basis Revenues not budgeted: Non -ad valorem cor►rivssions are not budgeted Non -ad valorem interest is not budgeted Total revenues - GAAP basis Total expenditures - budgetary basis Expenditures not budgeted - Non -ad valoiemrelated expenditures are not budgeted Total expenditures - GAAP basis Total other financing uses - budgetary basis Other financing uses not budgeted: Distribution of non -ad valorem excess fees are not budgeted Total other financing uses - GAAP basis 3. Cash $ 8,431,139 1,173,909 $ 9,605,048 $ 7,773,209 49,519 $ 7,822,728 $ (657,930) (1,124,390) $ (1,782,320) At September 30, 2020, the carrying value of the Property Appraiser's cash was as follows: Cash on hand Demand deposits Total cash Carrying Type Value $ 12.5 1,873,743 $ 1,873,868 10 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 3. Cash (continued) Custodial Credit Risk At September 30, 2020, the Property Appraiser's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Property Appraiser's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in Florida PRIlVIE (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Cominission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -hearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision; or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk. 11 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 4. Capital Assets Capital assets used by the Property Appraiser are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2020: October 1, September 30, 2019 Additions Deductions 2020 Improvements other thanbruldings $ 15,332 $ - $ - $ 15,332 Machinery and equipment 1,555,338 31,576 - 1,586,914 Total capital assets 1,570,670 31,576 - 1,602,246 Less: accunnmlated depreciation (1,354,151) (88,869) - (1,443,020) Total capital assets, net $ 216,519 $ (57,293) $ - $ 159,226 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2019 Increase Decrease 2020 Accrued compensated absences $ 356,098 $ 518,462 $ (296,877) $ 577,683 12 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 5. Long -Term Liabilities (continued) Of these liabilities, approximately $150,000 is expected to be paid during the fiscal year ending September 30, 2020, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured. 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program raider the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Property Appraiser are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida. Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflon'da.com). 13 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Florida Retiretnent System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices ui local government. • Senior Management Service Class (SMSC) — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at S years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 14 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the S highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cast -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 15 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a nunimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflowsfinflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate m the Investment Plan in lieu of the FRS defined benefit plan. Property Appraiser employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment fiends. 16 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, uicluding the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are inunediately vested in their own contributions and are vested after I year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these fiends and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2020, the inforrnation for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Property Appraiser. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, stnucture a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for fiuture distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement uucome. 17 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Contributions The contribution requirements of the Property Appraiser are established and may be amended by the State of Florida. The Property Appraiser's employer contributions to the plan for the years ended September 30, 2020, 2019, and 2018, were $573,446, $512,315, and $472,875, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report or County -wide financial statements. 7.Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Posteniployment Benefits Other- Than Pensions, are reported in the financial statements of the County. 8. Related Party Transactions During the fiscal year ended September 30, 2020, the Board paid fees to the Property Appraiser that amounted to $7,503,412. At September 30, 2020, the Property Appraiser had a payable due to the Board as follows. Distribution of excess commissions and fees $ 586,532 LE Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially sell=insured and accounts for and finances its risk of uninsured losses through an internal service fiend. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Property Appraiser participates in the County's self-insurance program. During the year ended September 30, 2020, the Property Appraiser was charged $1,160,524 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,0001$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per clairnl$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff ua certain litigation and claims arising from the ordinary course of operations. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser. 19 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2020 10. Commitments and Contingencies (continued) Leases The Property Appraiser leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Property Appraiser's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Property Appraiser are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fiend balance as they are incurred. During the year ended September 30, 2020, the Property Appraiser did not enter into any new leases. DLu'ing the year ended September 30, 2020, the Property Appraiser's payments of principal on leases totaled $55,849. 20 0 Clifton LarsonAllen LLP CLAconned.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Abe Skinner Property Appraiser Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governnient Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida Property Appraiser (Property Appraiser), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Property Appraiser's financial statements, and have issued our report thereon dated February 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Property Appraiser's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Property Appraiser's internal control. Accordingly, we do not express an opinion on the effectiveness of the Property Appraiser's internal control. A deficiencv in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A inaterial weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, mi internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of Nexla 21 Internatlonal Honorable Abe Skinner Property Appraiser Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser's financial statements are flee from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the deterYnination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Governfnent Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Property Appraiser's internal control or on compliance. This report is an integral part of an audit performed in accordance with Gaverninent Auditing Standards in considering the Property Appraiser's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. zz� CliftonLarsonAllen LLP Naples, Florida February 6, 2021 22 0 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Clifton LarsonAllen LLP CLAconnect.com Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Property Appraiser (Property Appraiser) as of and for the year ended September 30, 2020, and have issued our report thereon dated February 6, 2021. Auditors' Responsibility 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,&diting Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Governinent Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICP 4 Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Ruffles of the Auditor General. Disclosures in those reports which are dated February 6, 2021 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Conective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(l)(1)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to financial statements. A member of Nexla 23 Internatlonal Honorable Abe Skinner Property Appraiser Financial Management Section 10.554(1)(1)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(l)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Property Appraiser and applicable management, and is not intended to be, and should not be, used by anyone other than these specified parties. ZZ>Z� CliftonLarsonAllen LLP Naples, Florida February 6, 2021 24 0 Clifton LarsonAllen LLP CLAconnect.ccm INDEPENDENT ACCOUNTANTS' REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examuied the Collier County Property Appraiser, Collier County, Florida's (Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. Management of the Property Appraiser is responsible for the Property Appraiser's compliance with the specified requirements. Our responsibility is to express an opinion on the Property Appraiser's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Property Appraiser complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Property Appraiser complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Property Appraiser's compliance with specified requirements. In our opinion, the Property Appraiser complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. This report is intended solely for the information and use of the Property Appraiser and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. Z->7-7 CliftonLarsonAllen LLP Naples, Florida February 6, 2021 A member of Nexla 25 Internatlonal 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Collier County, Florida Sheriff Financial Statements and Supplemental Reports Year Ended September 30, 2020 Contents Independent Auditors' Report..........................................................................................................1 Financial Statements Balance Sheet — Governmental Funds.............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds.....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget (Non-GAAP) and Actual — General Fund........................................................................6 Statement of Net Position — Internal Service Fund..........................................................................7 Statement of Revenues, Expenses, and Changes in Net Position — InternalService Fund....................................................................................................................8 Statement of Cash Flows — Internal Service Fund...........................................................................9 Statement of Fiduciary Net Position — Agency Funds...................................................................10 Notes to Financial Statements........................................................................................................11 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios...............................................36 Combining Financial Information Combining Statement of Fiduciary Net Position — Agency Funds................................................37 Statement of Changes in Assets and Liabilities — Agency Funds..................................................38 Contents (continued) Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards....................................................................39 ManagementLetter........................................................................................................................41 Independent Accountants' Report ..................................................................................................43 Independent Accountants' Report on Applying Agreed -Upon Procedures...................................44 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Sheriff's 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. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. �A member of Nexia 1 International Honorable Kevin Rambosk Sheriff Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information for the Sheriff as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows and budgetary comparison thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County that is attributable to the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Schedule of Changes in Total OPEB Liability and Related Ratios, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a required part of the financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during our audit of the 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. Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. 2 Honorable Kevin Rambosk Sheriff Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff's financial statements. The combining statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 statements are fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 4, 2021 on our consideration of the Sheriff's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Sheriff's 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 Sheriff's internal control over financial reporting and compliance. LLB CliftonLarsonAllen LLP Naples, Florida March 4, 2021 3 Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2020 Assets Cash and cash equivalents Accounts receivable Other receivable Due from other funds Due from other governments Due from Collier County, Florida Board of County Commissioners Total assets Liabilities and fund balances Liabilities: Accounts payable Accrued expenses Due to other funds Due to Collier County, Florida Board of County Commissioners Due to other governments Unearned revenue Total liabilities Fund balances: Restricted Total liabilities and fund balances Grant Other Non -Major Special Prisoner Federal Equitable Special Revenue General Revenue Fund Welfare Sharing Funds Total $ 9,614,232 $ 1,198,550 $ 2,518,473 $ — $ — $ 13,331,255 132,883 — — — — $ 132,883 14,068 — — — — $ 14,068 1,164,931 — 54,647 — — $ 1,219,578 11,944 556,119 — — — $ 568,063 — 223,388 — — 1,172,603 $ 1,395,991 $ 10,938,058 $ 1,978,057 $ 2,573,120 $ — $ 1,172,603 $ 16,661,838 $ 1,846,470 $ 2,500 $ 6,224 $ — $ 66,048 $ 1,921,242 7,879,244 3,649 128 — 4,310 $ 7,887,331 500,000 — 52,224 — 1,102,245 $ 1,654,469 709,461 — — — — $ 709,461 424 — — — — $ 424 2,459 62,053 — — — $ 64,512 10,938,058 68,202 58,576 - 1,172,603 12,237,439 — 1,909,855 2,514,544 — — 4,424,399 $ 10,938,058 $ 1,978,057 $ 2,573,120 $ — $ 1,172,603 $ 16,661,838 See accompanying Notes to Financial Statements. 4 Collier County, Florida Sheriff Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended September 30, 2020 Revenues: Grant revenue Charges for services Other revenue Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Public safety: Personal services Operating expenditures Capital outlay Debt service - principal Debt service - interest Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from capital leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Collier County, Florida Board of County Commissioners Transfers out: Transfer out to Collier County, Florida Board of County Commissioners Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net change in fund balances Fund balances - beginning of year Fund balances - end of year See accompanying Notes to Financial Statements. Grant Other Non -Major Special Prisoner Federal Equitable Special Revenue General Revenue Fund Welfare Sharin¢ Funds Total $ - $ 2,409,465 $ - $ - $ - $ 2,409,465 1,355,444 - 574,211 - - $ 1,929,655 - - - 56,532 - $ 56,532 1,355,444 2,409,465 574,211 56,532 - 4,395,652 4,683,585 - - - - 4,683,585 84,496 - - - - 84,496 2,025 - - - - 2,025 147,953,257 539,805 280,340 - 581,754 149,355,156 31,286,279 581,987 116,111 - 1,382,003 33,366,380 14,466,333 659,812 - - 877,853 16,003,998 170,791 3,288 - - - 174,079 6,122 11 - - - 6,133 198,652,888 1,784,903 396,451 - 2,841,610 203,675,852 (197,297,444) 624,562 177,760 56,532 (2,841,610) (199,280,200) 179,262 101,370 _ 280,632 197,691,900 - - - - 197,691,900 127,509 - - - 2,841,610 2,969,119 - - - (690,602) - (690,602) (701,227) - - - (701,227) 197,297,444 101,370 - (690,602) 2,841,610 199,549,822 - 725,932 177,760 (634,070) - 269,622 - 1,183,923 2,336,784 634,070 - 4,154,777 $ - $ 1,909,855 $ 21514,544 $ - $ - $ 4,424,399 5 Collier County, Florida Sheriff Statement of Revenues, Expenditures and Changes in Fund Balance — Budget (Non-GAAP) and Actual General Fund Year Ended September 30, 2020 Revenues: Charges for services Total revenues Expenditures: General government: Personal services Operating expenditures Capital outlay Public safety: Personal services Operating expenditures Capital outlay Debt service - principal Debt service - interest Total expenditures Excess of expenditures over revenues Other financing sources: Transfers in: Proceeds from Capital Leases Collier County, Florida Board of County Commissioners appropriations Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of year Fund balance — end of year Variance With Budget Budget Positive Original Final Actual (Negative) — $ 1,060,400 $ 1,355,444 $ 295,044 — 1,060,400 1,355,444 295,044 4,309,900 4,309,900 4,683,585 (373,685) 173,400 173,400 84,496 88,904 — — 2,025 (2,025) 156,146,900 157,144,000 147,953,257 9,190,743 30,356,800 30,420,100 31,286,279 (866,179) 6,704,900 6,704,900 14,466,333 (7,761,433) — — 170,791 (170,791) — — 6,122 (6,122) 197,691,900 198,752,300 198,652,888 99,412 (197,691,900) (197,691,900) (197,297,444) 394,456 179,262 179,262 197,691,900 197,691,900 197,691,900 — — (701,227) (701,227) 197,691,900 197,691,900 197,169,935 (521,965) Total expenditures - budgetary basis Expenditures not budgeted: Expenditures for multi -period projects that are not budgeted Total expenditure - GAAP basis Total other financing sources - budgetary basis Transfers in from Collier County Florida Board of County Commissioners (non -appropriations) Total other financing sources (uses) - GAAP basis See accompanying Notes to Financial Statements. $ 198,652,888 127,509 $ 198,780,397 $ 197,169,935 127,509 $ 197,297,444 6 Collier County, Florida Sheriff Statement of Net Position — Internal Service Fund September 30, 2020 Assets: Cash and cash equivalents $ 3,993,830 Investments 11,496,111 Due from stop loss 265,036 Due from other 470 Due from other funds 500,000 Interest receivable 39,461 Total assets 16,294,908 Liabilities: Claims payable 472,043 Self insurance claims payable 2,901,000 Unearned revenue 108,130 Total liabilities 3,481,173 Net position: Unrestricted 12,813,735 Total net position $ 12,813,735 See accompanying Notes to Financial Statements. 7 Collier County, Florida Sheriff Statement of Revenues, Expenses, and Changes in Net Position — Internal Service Fund Year Ended September 30, 2020 Operating revenues: Charges for services Interest Total operating revenues Operating expenses: Claims and claims expenses Reinsurance premiums Administrative and other expenses Total operating expenses Operating income Nonoperating revenues: Interest income, net of management fees Realized gain on sale of investments Decrease in fair value of investments Total nonoperating revenues 30,553,505 9,914 30,563,419 26,062,032 1,725,668 696,204 28,483,904 2,079,515 152,285 102,596 (112,058) 142,823 Change in net position 2,222,338 Net position — beginning of year 10,591,397 Net position — end of year $ 12,813,735 See accompanying Notes to Financial Statements. �LV Collier County, Florida Sheriff Statement of Cash Flows — Internal Service Fund Year Ended September 30, 2020 Operating activities Cash payments for claims and claims related services Cash payments for reinsurance premiums Cash payments for administrative services and supplies Cash received from other funds for services Cash received from retirees for services Net cash provided by operating activities Investing activities Interest earnings, net of management fees Purchase of securities Proceeds from sales of securities Net cash used by investing activities Net decrease in cash, cash equivalents, and investments Cash, cash equivalents, and investments — beginning of year Cash, cash equivalents, and investments — end of year Reconciliation of operating income to net cash provided by operating activities Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Due from stop loss Decrease in due from other funds Increase in self-insurance claims payable Increase in claims payable Increase in unearned revenue Net cash provided by operating activities See accompanying Notes to Financial Statements. $ (25,743,475) (1,725,668) (686,290) 29,750,000 1,318,632 2,913,199 112,824 (14,866,350) 11,753,526 (3,000,000) (86,801) 4,080,631 $ 3,993,830 $ 2,079,515 (108,089) 500,000 (45,000) 472,043 14,730 $ 2,913,199 M Collier County, Florida Sheriff Statement of Fiduciary Net Position — Agency Funds September 30, 2020 Assets: Cash and cash equivalents $ 626,911 Due from individuals and businesses 5,123 Total assets $ 632,034 Liabilities: Due to other funds $ 65,109 Due to Collier County, Florida Board of County Commissioners 13,629 Due to individuals and businesses 553,296 Total liabilities $ 632,034 See accompanying Notes to Financial Statements. 10 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Sheriff (Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff's budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The Sheriff is the chief law enforcement officer of Collier County, Florida (County) and is responsible for operating the County's corrections facilities. The financial statements include the general fund, special revenue funds, proprietary fund (internal service fund), and agency funds of the Sheriff's office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, which allows the Sheriff to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Sheriff. They are not intended to present fairly the financial positions and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. There are no separate legal entities (component units) for which the Sheriff is financially accountable. Chapter 10.550, Rules of the Auditor General - Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government -wide financial statements and related disclosures, including management's discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2020 and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with Governmental Accounting Standards Board (GASB) Statement No.34, Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America. As a result of the budgetary oversight by the Board and the financial dependency on the Board, the financial activities of the Sheriff are included in the Collier County, Florida Comprehensive Annual Financial Report. 11 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Measurement Focus, Basis of Accounting, and Basis of Presentation Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated general fund balance is carried forward. The fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Sheriff considers revenues to be available if they are collected within 60 days after year-end with the exception of grants, which have a period of availability of one year. Grants are recognized as revenue as soon as all eligibility requirements have been met. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. Substantially all of the Sheriff's funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, money must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. In the other, money is virtually unrestricted and is revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the "susceptible to accrual" criteria are met. Other revenue is recognized as earned and becomes measurable and available to pay liabilities of the current period. 12 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. The Sheriff has four major governmental funds: General Fund — The general fund is used to account for the general operations of the Sheriff and includes all transactions which are not accounted for in another fund. Grant Special Revenue Fund — This fund is used to account for the proceeds of federal and state grant revenues that are legally restricted to specified purposes. It also includes funds donated to the Collier County Sheriff's Office. Donated funds are used in accordance with how each donor designates the use of funds. The majority of donated funds are usually designated for youth programs; however, funds have also been donated for officer safety, use by specific districts/substations for community activities, or other programs/activities in the community. Prisoner Welfare Fund — This fund is used to account for the proceeds of inmate -related services and is legally restricted to specified purposes, which benefit the inmate population. Federal Equitable Sharing Fund — The revenue from this fund is the result of joint investigations with federal agencies that result in the equitable sharing of the net proceeds of the forfeiture. Effective September 30, 2020, all Federal Equitable Sharing funds were transitioned to the County finance office, per The Department of Justice's Money Laundering and Asset Recovery Section (MLARS) and the Department of the Treasury Executive Office for Asset Forfeiture (TEOAF). 13 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) The Sheriff also has the following non -major funds: Reported as Other Non -major Special Revenue Funds Confiscated Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 932.705. Funds are generally used for local match for grants, drug abuse education and prevention programs, and for other law enforcement purposes as the Board deems appropriate. Civil Citation — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 775.083. Funds are used for local match for grants and to defray the costs for crime prevention programs in the county. Education Trust Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. E911— This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 365.172. Funds are used to pay certain costs associated with the Emergency 911 System. Criminal Justice Education and Training — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 943.25. Funds are used to defray training costs. Domestic Violence Training Fund — This fund is used to account for the proceeds of funds collected pursuant to Florida Statute 938.08. Funds are used to defray of incarcerating persons sentenced under Florida Statute 741.283 and to provide additional training to law enforcement personnel in combating domestic violence. Fund balances reported in these funds are to be used for the specified purpose of the respective fund. Fiduciary Funds Fiduciary Funds — Agency Funds — These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. 14 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Proprietary Fund Internal Service Fund — This fund is used to account for the health and dental insurance services provided to departments and retirees of the Sheriff on a cost -reimbursement basis. Proprietary funds are accounted for 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. Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. The Sheriff invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA), under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. Florida PRIME is considered a qualifying external investment pool that meets all the necessary criteria to elect to measure all of the investments at amortized cost. Therefore, the fair value of the Sheriff's position in the pool is the same as the value of the pool shares. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year, and as of September 30, 2020, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 23.5% of Florida PRIME's portfolio at September 30, 2020. In accordance with GASB Statement No. 79, as a participant in a qualifying external investment pool, the Sheriff should disclose the presence of any limitations or restrictions on withdrawals (such as redemption notice periods, maximum transaction amounts, and the qualifying external investment pool's authority to impose liquidity fees or redemption gates in the notes to the financial statements). 15 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Cash Equivalents and Investments (continued) With regards to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that "The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory council. The Trustees shall convene an emergency meeting before the expiration of the 48-hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days." With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made. At September 30, 2020, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant's daily access to 100 percent of their account value. Compensated Absences All full-time employees of the Sheriff are allowed to accumulate an unlimited number of hours of unused sick time and up to 500 hours of unused vacation leave. As of March 16, 2020, the Sheriff authorized unused vacation balances to be temporarily raised to 600 hours, effective through December 31, 2020. This change was made as a result of the COVID-19 pandemic. Upon termination, employees receive 100% of allowable accumulated vacation hours. If the member leaves in good standing they will also receive a percentage of unused sick leave, depending on years of service, not to exceed 2,000 hours. Vacation time and sick leave are included in operating costs when the payments are made to the employees. The Sheriff does not, nor is the Sheriff legally required to, accumulate expendable financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements for the County. 16 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Significant items subject to such estimates and assumptions include the self-insurance claims payable. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Non -spendable fund balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Sheriff did not have any non -spendable fund balances as of September 30, 2020. Spendable fund balances are classified based on a hierarchy of the Sheriff's ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned, and unassigned. The Sheriff's fund balances for the Grant Special Revenue Fund, Prisoner Welfare Fund, and Federal Equitable Sharing Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund, Prisoner Welfare Fund, and the Federal Equitable Sharing Fund are constrained for specific purposes that are externally imposed by donors, grantors, laws, or regulations or imposed by law through constitutional provisions or enabling legislation, and are reports as restricted fund balances. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Sheriff's annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America, except that the proceeds from leases and the related capital outlay are not budgeted and certain expenditures for long-term projects which are reimbursed by the Board are also not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. 17 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 2. Budgetary Process (continued) Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within the major object expenditure categories are made at the discretion of the Sheriff. The Sheriff does not budget for the grant special revenue fund as it is funded by federal and state grants and is governed by those documents. Additionally, the prisoner welfare and federal equitable sharing funds do not have legally adopted budgets. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. This space intentionally left blank WV Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 3. Cash, Cash Equivalents and Investments At September 30, 2020, the carrying value of the Sheriff's cash, cash equivalents, and investments was as follows: Type Cash on hand Demand deposits Local government surplus funds trust fund: Florida Prime (SBA) Total cash and cash equivalents Money Market Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Mortgage Corp. Federal Home Loan Mortgage Corp. Certificate of Deposit Certificate of Deposit Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Treasury Note Total Investments Total cash, cash equivalents and investments Credit Maturity Carrying Value Rating * N/A $ 18,792 N/A N/A 17,135,357 N/A N/A 797,847 Aaa $ 17,951,996 N/A 191,085 Not rated 10/21/2021 500,460 AA+ 9/16/2025 499,260 AA+ 11/27/2023 500,025 AA+ 12/2/2021 551,194 AA+ 1/13/2022 250,833 AA+ 6/9/2022 499,855 AA+ 12/23/2021 500,005 AA+ 4/13/2023 499,530 AA+ 1/22/2024 250,015 AA+ 8/11/2023 500,025 AA+ 5/13/2025 500,135 AA+ 3/28/2024 499,760 AA+ 12/9/2022 500,280 Aaa 5/28/2024 500,355 Aaa 4/4/2022 246,000 Not rated 4/4/2022 246,000 Not rated 4/15/2022 516,330 AA+ 5/15/2022 516,210 AA+ 2/28/2022 511,445 AA+ 11/15/2020 501,535 AA+ 7/31/2021 504,180 AA+ 9/30/2021 252,442 AA+ 10/31/2020 250,335 AA+ 12/31/2020 483,830 AA+ 6/30/2022 400,000 AA+ 8/31/2022 324,987 AA+ 11,496,111 $ 29,448,107 *Credit ratings are Standard & Poor ratings except for FHLMC and Florida Prime which are Moody ratings. 19 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 3. Cash, Cash Equivalents and Investments (continued) The total cash, cash equivalent and investments balances at September 30, 2020, were as follows: General fund Grant special revenue fund Prisoner welfare fund Internal service fund Agency funds Custodial Credit Risk $ 9,614,232 1,198,550 2,518,473 15,489,941 626,911 $ 29,448,107 At September 30, 2020, the Sheriff's demand deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the government entity for the loss. The investments in the Internal Service Fund are part of the Florida Sheriffs Employer Benefits Trust (FSEBT) and are administered by FSEBT. FSEBT's policy requires execution of a third - party custodial safekeeping agreement for purchased securities and collateral, and requires that securities be held in the Sheriff's name. Credit Risk The Sheriff's policy is to follow the guidance in Sections 218.415 and 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. The Sheriff's Investment Policy authorizes investments in Florida PRIME (formerly the Local Government Surplus Funds Trust Fund), or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, as provided in s. 163.01, F.S.; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; interest -bearing time deposits or savings accounts in qualified public depositories, as defined in s. 280.02, F.S.; and direct obligations of the U.S. Treasury. 20 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 3. Cash, Cash Equivalents and Investments (continued) Credit Risk (continued) Additionally, Florida Statutes allow local governments to place public funds with institutions that participate in a collateral pool under the Florida Security for Public Deposits Act. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. Florida PRIME is administered by the State Board of Administration. Florida PRIME consisted of money market appropriate assets. At September 30, 2020, the Sheriff had $797,847 invested in Florida PRIME. Florida PRIME is rated "Aaa" by Moody's Ratings Services. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Concentration of Credit Risk The Sheriff's investments are included in the internal service fund which is used to account for the Sheriff's self -insured health plan. FSEBT administers the investments for the Sheriff's self -insured health plan and has an investment policy that allows for the investment of funds that exceed one month's required funding by more than $100,000. Investments can be made in government securities. The Sheriff's portfolio managed by FSEBT includes investments in U.S. government instrumentalities, and demand deposits. There are also demand deposits that are not managed by FSEBT and are available dollars managed by the Sheriff to cover daily operations. The portion of the Sheriff's portfolio invested in FSEBT is detailed as follows, at September 30, 2020: % of Portfolio Money Market 2% Treasury Note 37% Certificate of Deposit 4% Federal Home Loan Mortgage Corp. 9% Federal Farm Credit Bank 48% Total 100% 21 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 3. Cash, Cash Equivalents and Investments (continued) Fair Value Measurements The Sheriff categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Sheriff has the following recurring fair value measurements as of September 30, 2020: • U.S. Treasury Notes classified as level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. • U.S. Agency obligations classified as level 2 of the fair value hierarchy are valued using quoted prices for similar assets in active markets. 4. Capital Assets Capital assets used by the Sheriff are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value on the date received. The Sheriff maintains custodial responsibility for the capital assets used by his office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. 22 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 4. Capital Assets (continued) The following is a summary of changes in capital assets which are reported in the basic financial statements of Collier County, Florida: October 1, Deductions/ September 30, 2019 Additions Reclassifications 2020 Governmental Activities Capital assets not depreciated: Construction in Progress $ 1,930,319 $ 2,387,491 $ (1,883,329) $ 2,434,481 Total capital assets not depreciated 1,930,319 2,387,491 (1,883,329) 2,434,481 Capital assets depreciated Machinery and equipment 91,648,442 14,052,567 (3,310,052) 102,390,957 Total capital assets depreciated 91,648,442 14,052,567 (39310,052) 102,390,957 Less accumulated depreciation: Machinery and equipment (58,962,436) (11,304,295) 5,193,381 (65,073,350) Total Accumulated depreciation (58,962,436) (11,304,295) 5,193,381 (65,073,350) Total Depreciable capital assets, net 32,686,006 2,748,272 1,883,329 37,317,607 Total Governmental Activities capital assets, net $ 34,616,325 $ 5,135,763 $ — $ 39,752,088 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, 2019 Compensated Absences 20,495,173 Deductions/ September 30, Additions Reclassifications 2020 3,612,849 (2,270,574) $ 21,837,448 Of these liabilities, approximately $1,050,000 is expected to be paid during the fiscal year ending September 30, 2021. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. 23 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 5. Long -Term Liabilities (continued) The Sheriff leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 —Leases. Detailed information about the Sheriff's leases can be found in the Collier County Comprehensive Annual Financial Report or County -wide financial statements. Leases entered into by the Sheriff are included as other financing sources and capital outlay expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the Statement of Revenues, Expenditures, and Changes in Fund Balance as they are incurred. During the year ended September 30, 2020, the Sheriff entered into leases in the amount of $280,632. During the year ended September 30, 2020, the Sheriff's principal and interest payments on leases totaled $180,212. 6. Interfund Balances and Transfers Due from and due to other funds at September 30, 2020, were as follows: General Fund Prisoner Welfare Fund Internal Service Fund Other non -major special revenue fund, Agency Funds Total Due From Due To $ 1,164,931 54,647 500,000 $ 500,000 52,224 1,102,245 65,109 $ 1,719,578 $ 1,719,578 Interfund receivables and payables generally represent recurring activities between funds. 24 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 7. Related Party Transactions The Board provided funding for the Sheriff for the year of $197,691,900. At September 30, 2020, the Sheriff had a payable due to the Board of $723,090 comprised of the following: General fund: Distributions of excess appropriations $ 701,227 Distribution of interest collected 6,436 Miscellaneous payables 1,798 Agency fund 13,629 Total $ 723,090 Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $1,395,991 at September 30, 2020. Agency Funds The Sheriff's Office administers funds for the Collier County Sheriff's Office Explorers Program. The program is funded by donations from employees through payroll deduction and donations from outside organizations. The program is designed for students to explore the opportunity to learn about and interact with law enforcement and to help stimulate further interest in the possibility of a law enforcement career. 8. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. 25 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 8. Pension Plans (continued) Background (continued) Essentially all regular employees of the Sheriff are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. • Renewed Membership Class —Members who retired from July 1, 1991 through June 30, 2010, and are reemployed in a regularly established position with a covered employer, upon vesting again, are eligible for an additional retirement benefit based on service as a renewed member. Retirees of the FRS Investment Plan who are employed on or after July 1, 2017 are eligible for renewed membership in the Investment Plan. 26 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 8. Pension Plans (continued) Florida Retirement Svstem Pension Plan (continued Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in - line -of -duty or regular disability and survivors' benefits. 27 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 8. Pension Plans (continued) Florida Retirement Svstem Pension Plan (continued As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. WV Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 8. Pension Plans (continued) FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Sheriff employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after I year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2020, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. 29 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 8. Pension Plans (continued) Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Sheriff's contributions made to the plans during the years ended September 30, 2020, 2019, and 2018 were $19,677,937, $18,763,457, and $17,500,632, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. 9. Other Postemployment Benefits The Sheriff follows the provisions of GASB Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its other postemployment benefits (OPEB). The liability, expense, deferred outflows of resources and deferred inflows of resources for OPEB, calculated in accordance with GASB Statement No. 75, are reported in the financial statements of the County. Plan Description The Sheriff administers a single -employer defined benefit plan (OPEB Plan) and can amend the benefit provisions. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for retirees who have six years of creditable service with the Sheriff and who receive a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 26% for both single coverage and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 22% of retirees receive the subsidy. Additionally, in accordance with Florida Statute 112.0801, Sheriff's employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the Sheriff's health insurance plan at the same group rate as for active employees. Participant Data At September 30, 2020, the Sheriff's plan participation consisted of - Active employees 1,138 Inactive employees or beneficiaries currently receiving benefit payments 130 Funding Policy The Sheriff has the authority to establish and amend funding policy. The OPEB Plan is currently being funded on a pay -as -you go basis. No trust or agency fund has been established for the plan. 30 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 9. Other Postemployment Benefits (continued) Total OPEB Liability The Sheriff's OPEB liability of $27,920,433 was measured as of September 30, 2020, and was determined by an actuarial valuation as of October 1, 2020. The following table shows the changes in the Sheriff's total OPEB liability for the year ended September 30, 2020. Liability Balance, as of October 1, 2019 $ 21,786,049 Changes: Service cost 555,065 Interest 435,838 Differences between expected and actual experience 5,292,054 Changes in assumptions or other inputs 949,878 Benefit payments (1,098,451) Net changes 6,134,384 Balance, as of September 30, 2020 $ 27,920,433 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Total OPEB Liability 1% Decrease Discount Rate 1% Increase 0.60% 1.60% 2.60% $ 30,594,983 $ 27,920,433 $ 25,553,103 The following presents the total OPEB liability of the Sheriff, as well as what the Sheriff's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 % point lower (5% decreasing to 4.0%) or 1% point higher (7% decreasing to 6%) than the current healthcare cost trend rates: Healthcare rate sensitivity 1% Decrease Discount Rate 1% Increase (5% decreasing (6% decreasing (7% decreasing to 4%) to 5%) to 6%) Total OPEB Liability $ 25,410,106 $ 27,920,433 $ 30,806,872 31 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 9. Other Postemployment Benefits (continued) Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2020, the Sheriff's OPEB expense was $1,457,290. In addition the Sheriff reported deferred outflow of resources and deferred inflow of resources from the following sources: Description Differences between expected and actual experience Changes in assumptions Total Deferred Deferred Outflows of Inflows of Resources Resources $ 6,769,118 2,883,018 $ 9,652,136 $ 49,528 648,216 $ 697,744 Amounts reported as deferred inflows of resources and deferred outflows of resources as an increase/decrease to OPEB expense will be recognized as follows: Deferred Outflows Deferred Inflows Year beginning October 1 of Resources of Resources 2020 $ 1,486,003 $ 136,740 2021 1,486,003 136,740 2022 1,486,003 136,740 2023 1,486,003 136,740 2024 1,486,003 129,469 Thereafter 2,222,121 21,315 Actuarial Methods and Assumptions Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. 32 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 9. Other Postemployment Benefits (continued) Actuarial Methods and Assumptions (continued) Calculations for financial reporting purposes are based on the benefits provided under terms of the plan as understood by the employer and the plan members in effect at the time of each valuation and on the pattern of sharing of costs between the employer and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. The actuarial methods are: Actuarial cost method The actuarial assumptions are: Discount rate Healthcare cost trend rate Salary increase New employees Entry Age Actuarial 1.6% (Based on 20-year AA municipal bond rate) 6% None None Mortality rates were based on the RP-2014 Mortality Fully Generational tables using Projection Scale MP-2019. The following changes have been made since the prior year valuation: • The discount rate was changed from 2.0% to 1.6% • The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2017 to RP-2014 Mortality Fully Generational Projection Scale MP-2019. 33 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 10. Self -Insurance Program The Sheriff's Office participates in the Statewide Florida Sheriff's Self -Insurance Fund (the Fund) for its professional liability insurance. The Fund is managed by representatives of the participating Sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any one incident, and $10,000,000 for an annual aggregate. The Sheriff also participates in the Fund for workers' compensation coverage. The Florida Sheriffs Workers' Compensation Self Insurance Program is a self-insurance program providing coverage for the first $1,000,000 of every claim. Reinsurance is purchased by the Program to cover claims exceeding $1,000,000 (or $500,000 or $350,000 where applicable, based upon occurrence year of claim) up to $18,000,000. Reinsurance coverage up to $20,000,000 for any one person on a catastrophic basis is available when applicable. Settled claims have not exceeded the insurance provided by third -party carriers in any of the past three years. Premiums charged to participating Sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self -insured risks are reported in the basic financial statements of the Fund. The Sheriff has also established a self -funded employee health plan for active employees and retirees. An internal service fund is used to account for the activities of the plan. Excess coverage has been purchased which provides specific claim excess coverage for any one incident exceeding $200,000. In FY20 there were two covered individuals who had higher deductible amounts because of a history of high claims. Both individuals had deductibles of $350,000. Specific claim excess coverage for these individuals was for claims exceeding $350,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff's Office uses a Third -Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 202020 and 2019 are as follows: New Claims Balance and Changes Claim Balance Fiscal year ending: October 1 in Estimates Payments September 30 2019 $2,884,000 $26,143,340 ($26,081,340) $2,946,000 2020 $2,946,000 $26,017,032 ($26,062,032) $2,901,000 34 Collier County, Florida Sheriff Notes to Financial Statements September 30, 2020 11. Commitments and Contingencies Litigation The Sheriff is involved in various claims and legal actions arising in the ordinary course of operations. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Sheriff. Federal and State Grants Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff. COVID During the fiscal year, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. Specific to the Collier County Sheriff's Office, COVID-19 may impact various parts of its 2021 operations and financial results. Management believes the Collier County Sheriff's Office is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as events associated with the pandemic continue to develop. 35 Collier County, Florida Sheriff Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios Total OPEB Liability Service cost Interest Differences between expected and actual experience Changes in assumptions or other inputs Benefit payments Net change in total OPEB Liability Total OPEB Liability, beginning Total OPEB Liability, ending Covered -employee payroll Total OPEB Liability as a percentage of covered -employee payroll Notes to Schedule September 30, 2020 2020 2019 2018 2017 $ 555,065 $ 485,365 $ 520,082 $ 491,420 435,838 631,825 503,525 502,621 5,292,054 — 2,048,462 (83,607) 949,878 2,250,569 (898,977) — (1,098,451) (1,074,207) (941,061) (871,353) 6,134,384 2,293,552 1,232,031 39,081 21,786,049 19,492,497 18,260,466 18,221,3 85 $ 27,920,433 $ 21,786,049 $ 19,492,497 $ 18,260,466 $ 83,944,157 $ 81,378,975 $ 80,473,682 $ 91,192,818 33.26% 26.77% 24.22% 20.02% Changes in Assumptions: Change in the discount rate of 2.0% as of September 30, 2019 to 1.6% as of September 30, 2020. The mortality assumption has been updated from RP-2014 Mortality Fully Generational using Projection Scale MP-2017 to RP-2014 Mortality Fully Generational Projection Scale MP-2019. Note: Information is required to be presented for 10 years. However, until a full 10-year trend is completed, the County will present information for only those years for which information is available. 36 Collier County, Florida Sheriff Combining Statement of Fiduciary Net Position - Agency Funds September 30, 2020 Total Civil Evidence Flexible Inmate Agency Trust Trust Spending Trust Explorers Funds Assets: Cash and cash equivalents $ 34,697 $ 204,714 $ 272,912 $ 93,513 21,075 $ 626,911 Due from individuals and businesses - - - 5,123 - 5,123 Total assets $ 34,697 $ 204,714 $ 272,912 $ 98,636 $ 21,075 $ 632,034 Liabilities: Due to other funds $ - $ - $ - $ 65,109 - $ 65,109 Due to Collier County, Florida Board of County Commissioners 7,530 - - 6,099 - 13,629 Due to individuals and businesses 27,167 204,714 272,912 27,428 21,075 553,296 Total liabilities $ 34,697 $ 204,714 $ 272,912 $ 98,636 $ 21,075 $ 632,034 37 Collier County, Florida Sheriff Statement of Changes in Assets and Liabilities — Agency Funds Assets: Cash and cash equivalents Due from individuals and businesses Total assets Liabilities:. Due to other funds Due to Collier County, Florida Board of County Commissioners Due to individuals and businesses Total liabilities September 30, 2020 October 1, September 30, 2019 Additions Deletions 2020 $ 613,876 $ 626,911 $ (613,876) $ 626,911 9,646 5,123 (9,646) 5,123 $ 623,522 $ 632,034 $ (623,522) $ 632,034 $ 75,594 $ 65,109 $ (75,594) $ 65,109 19,534 13,629 (19,534) 13,629 528,394 553,296 (528,394) 553,296 $ 623,522 $ 632,034 $ (623,522) $ 632,034 CliftonLarsonAllen LLP CLAconnectcom INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Kevin Rambosk Sheriff Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Collier County, Florida Sheriff (Sheriff), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Sheriff's basic financial statements, and have issued our report thereon dated March 4, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Sheriff's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Sheriff's internal control. Accordingly, we do not express an opinion on the effectiveness of Sheriff's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of Nexia 39 International Honorable Kevin Rambosk Sheriff Compliance and Other Matters As part of obtaining reasonable assurance about whether the Sheriff s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida March 4, 2021 M MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com Report on the Financial Statements We have audited the financial statements of the Collier County, Florida Sheriff (Sheriff), as of and for the fiscal year ended September 30, 2020 and have issued our report thereon dated March 4, 2021. Auditors' Responsibility 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; and Chapter 10.550, Rules of the Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and our Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 4, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. A member of Nexia 41 International Honorable Kevin Rambosk Sheriff Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, and the Sheriff and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. e!' �'?' � zz-> CliftonLarsonAllen LLP Naples, Florida March 4, 2021 42 CliftonLarsonMen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have examined the Collier County, Florida Sheriff s (Sheriff) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. Management of the Sheriff is responsible for the Sheriff s compliance with the specified requirements. Our responsibility is to express an opinion on the Sheriff s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Sheriff complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Sheriff complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Sheriffs compliance with specified requirements. In our opinion, the Sheriff complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. This report is intended solely for the information and use of the Sheriff and the Auditor General, State of Florida, and is not intended to be and should not be used by anyone other than these specified parties. zz--/� CliftonLarsonAllen LLP Naples, Florida March 4, 2021 �A member of Nexia 43 International CliftonLarsonMen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED -UPON PROCEDURES Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below, which were agreed to by management of the Collier County, Florida Sheriff (Sheriff) on the Sheriff's policies and procedures as defined by the Sheriff over its investigative funds for the year ended September 30, 2020. The Sheriff's management is responsible for the Sheriff's compliance with those procedures and policies. The sufficiency of these procedures is solely the responsibility of the parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are summarized as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2020 (the population sampled included transactions from October 1, 2019 through September 30, 2020), and performed the following procedures with respect to the Sheriff's policies and procedures over investigative funds: 1. We obtained the "Disbursement for Investigation" form and observed the form was properly completed and authorized by appropriate personnel. No exceptions were noted. 2. We obtained the "Purchase of Evidence/Information Voucher" and observed the form was properly completed to reflect the expenses incurred within the investigation procedures, the investigative expenditures were properly supported, and the use of funds was for authorized purposes. No exceptions were noted. 3. We observed the unused funds returned, if applicable, agreed to the corresponding deposit and bank statement detail and observed the amount deposited agreed to the amount returned per the "Receipt for Funds Received" form detail. No exceptions were noted. A member of Nexia 44 International Honorable Kevin Rambosk Sheriff This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not, conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the policies and procedures as defined by the Sheriff over its investigative funds. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the management of the Sheriff and is not intended to be, and should not be, used by anyone other than this specified party. LLB CliftonLarsonAllen LLP Naples, Florida March 4, 2021 45 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2020 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2020 Contents Independent Auditors' Report--------------- ------- --------------------- ------- ----------------------- --------------- ....... ---1 Financial Statements Balance Sheet — Governmental Funds ......... ..................................................... ....... ........ ........ —.3 Statement of Revenues, Expenditures, and Changes in Fund Balances — GovernmentalFunds .......................................... ........................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual— General Fund ............... ....................... ----...--..... ....................... ---- .--... --.----.-5 Notes to Financial Statements...................................................................................................... .6 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Governnrent,4uditing Standards..............................................20 ManagementLetter ...... ....... ....... ............................... ................................................................22 Independent Accountants' Report ..................................................................................................24 CliftonLarsonAllen LLP ► CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Supervisor's 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. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. A member of Nexia International Honorable Jennifer J. Edwards Supervisor of Elections Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Supervisor as of September 30, 2020, and the respective changes 'n financial position and budgetary comparison of its general fund thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis o, f Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, only for that portion of the major funds of Collier County, Florida that is attributable to the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated February 13, 2021 on our consideration of the Supervisor's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Supervisor's 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 Supervisor's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida February 13, 2021 2 Collier County, Florida Supervisor of Elections Balance Sheet — Governmental Funds September 30, 2020 Assets Cash and cash equivalents Total assets Liabilities and fund balance Liabilities: Accounts payable Accrued liabilities Due to Collier County, Florida Board of County Commissioners Unearned revenue Total liabilities Fund balances: Restricted Total fund balances Total liabilities and fund balances See accompanlnng Notes to Financial Statements Grant Special General Revenue Total $ 188,343 $ 38,056 $ 226,399 $ 188343 $ 38,056 $ 226,399 $ 32,033 63,223 93,087 188,343 $ - $ 32,033 - 63,223 - 93,087 38,008 38,008 38,008 226,351 48 M - 48 48 $ 188,343 $ 38,056 $ 226-399 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Governmental Funds Year Ended September 30, 2020 Revenues: Intergovernmental Interest Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt service principal Debt service interest Total expenditures Excess (deficiency) of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: General Fund Collier County, Florida Board of County Commissioners appropriations Transfers out: Special revenue fund Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources (uses) Net chance in fund balances Fund balances — beginning of the year Fund balances — end of the year See accompanjft Notes to Financial Statements Grant Special General Revenue Dotal $ - $ 314,857 $ 314,857 - 257 257 315,114 315,114 2,359,406 - 2,359,406 1,774,881 409,241 2,184,122 199,677 13,509 213,186 1,056 - 1,056 105 - 105 4,335,125 422,750 4,757,875 (4,335,125) (107,636) (4,442,761) 8,823 - 8,823 - 68,187 68,187 41478,200 - 4,478,200 (68,187) - (68,187) (83,711) - (83,711) 4,335,125 68,187 4,403,312 - (39,449) (39,449) - 39,497 39,497 $ - $ 48 $ 48 4 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget and Actual General Fund Year Ended September 30, 2020 Revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service Principal Debt Service Interest Total expenditures Deficiency of expenditures over revenues Other financing sources (uses): Proceeds from right to use leases Transfers in: Collier County, Florida Board of County Commissioners appropriations Transfers out: Special Revenue Find Distribution of excess appropriations: Collier County, Florida Board of County Commissioners Total other financing sources Net change in fund balance Fund balance — beginning of the year Fund balance — end of the year See accompanjft Notes to Financial Statements variance With Final Budget Budget Positive Original Final Actual (Negative) 2,499,600 2,434,600 2359,406 75,194 1,927,600 1,833,613 1,774,881 58,732 51,000 141,800 199,677 (57,877) - - 1,056 (1,056) - - 105 (105) 4,478,200 4,410,013 4335,125 74,889 (4,478,200) (4,410,013) (4,335,125) 74,888 - - 8,823 8,823 4,478,200 4,478,200 4,478,200 - - (68,187) (68,187) - - - (83,711) (83,711) 4,478,200 4,410,013 4,335,125 (74,888) 5 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies Reporting Entity The Collier County, Florida Supervisor of Elections (Supervisor) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections' budget is submitted to the Collier County, Florida Board of County Commissioners (Board) for approval. The financial statements presented include the general fund and grant special revenue fund of the Supervisor's office. The accompanying financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules o, f the Auditor General — Local Governmental Entity Audits, which allows the Supervisor to only present fiend financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Supervisor. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Supervisor, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. There are no separate legal entities (component units) for which the Supervisor is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the Collier County, Florida Board of County Commissioners (Board), and grant revenue is funded from the State of Florida. Pursuant to Chapter 218, Florida Statutes, funds remaining in the general fund at fiscal year-end, in excess of amounts expended, are returned to the Board. Excess revenues returned to the Board are reflected as transfers out in the Supervisor's general fund. The special revenue fund of the Supervisor is not budgeted and is governed by grant agreements. As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor are included in the Collier County, Florida Comprehensive Annual Financial Report. Measurement Focus, Basis of Accounting, and Basis of Presentation These fund financial statements report detailed information about the Supervisor. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Supervisor has the following major governmental funds. General Fund — The general fund is used to account for the general operations of the Supervisor and includes all revenues and expenditures which are not accounted for in another fund. Grant Special Revenue Fund — The grants fined is used to account for the activities of voter education and poll worker training grants from the State of Florida. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Supervisor considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. The appropriations from the Board are the primary source of funds considered to be susceptible to accrual. Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Interest income and other revenues are recognized as they are earned and become measurable and available to pay liabilities of the current period. Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements. 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) Capital outlays expended in general find operations are capitalized ui the basic financial statements of Collier County, Florida rather than in the governmental funds of the Supervisor. Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Compensated Absences All full-time employees of the Supervisor are allowed to accumulate an unlimited number of hours of unused sick time and up to 440 hours of unused vacation leave. Effective October 1, 2007, the vacation leave limit was increased to 480 hours, with Supervisor approval. Upon termination, employees receive 100% of allowable accrunulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation time and sick leave are included in operating costs of the general find when the payments are made to employees. The Supervisor does not, nor is legally required to accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general find of the Supervisor, but rather is reported in the basic financial statements of Collier County, Florida. Use of Estimates The preparation of the financial statements requires management of the Supervisor to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. Fund Balance Reporting and Governmental Fund -Type Definitions Fund balances are classified either as non -spendable or as spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and/or internal constraints in how fund balance amounts may be spent. Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund -Type Definitions (continued) Non -spendable find balances include amounts that cannot be spent because they are not in spendable form or are legally or contractually required to be maintained intact. The Supervisor did not have any non -spendable find balances as of September 30, 2020. Spendable find balances are classified based on a hierarchy of the Supervisor's ability to control the spending of these find balances and are reported in the following categories: restricted, committed, assigned and unassigned. The Supervisor's find balances for the Grant Special Revenue Fund fall into the spendable restricted category. Fund balances maintained in the Grant Special Revenue Fund are restricted pursuant to specific grant agreements and have been presented in the find financial statements in accordance with GASB Statement No. 54. 2. Budgetary Process Florida Statutes govern the preparation, adoption and administration of the Supervisor's annual budget. The Supervisor submits a budget for the general find to the Board for approval. The budget is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor's total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor. The Supervisor does not budget for the grant special revenue fund as it is funded by state grants and is governed by those documents_ The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 0 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 3. Cash and Cash Equivalents At September 30, 2020, the carrying value of the Supervisor's cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand $ 200 NIA Demand deposits 226,199 NIA Total cash and cash equivalents $ 226,399 Custodial Credit Risk At September 30, 2020, the Supervisor's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Supervisor's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of fiords received and the investment of surplus ftmds. Sections 219.075 and 218.415, Florida Statutes, authorize the Supervisor to invest in Florida PRIldE (formerly the Local Government Surplus Funds Trust Fund) or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized sunder the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost. 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 3. Cash and Cash Equivalents (continued) Interest Rate Risk The Supervisor has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Supervisor are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental fiords of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Supervisor and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Supervisor maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2019 Additions Deductions 2020 Machinery and equipment $ 863,544 $ 204,363 $ (23,334) $ 1,044,573 Less accumulated depreciation (562,364) (112,394) 23,334 (651,424) Machinery and equipment, net $ 301,180 $ 91,969 $ - $ 393,149 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2019 Additions Deductions 2020 Accrued Compensated Absences $ 205,735 $ I M673 $ (102,730) $ 214,678 11 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 5. Long -Term Liabilities (continued) Of these liabilities, approximately $103,046 is expected to be paid during the fiscal year ending September 30, 2021, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Supervisor since they have not matured. The Supervisor leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 — Leases. Detailed information about the Supervisor's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Supervisor are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terns are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. During the year ended September 30, 2020, the Supervisor entered into leases in the amounts of $8,823. During the year ended September 30, 2020, the Supervisor's payments of pruicipal on leases totaled $1,056. G. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Supervisor are eligible to enroll as members of the State - administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by fin-ther action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflor7da.com). Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: Regular Class — Members of the FRS who do not qualify for membership in the other classes. Elected County Officers Class — Members who hold specified elective offices in local government. Senior Management Service Class (SMSQ — Members in senior management level positions. Special Risk: Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in - line -of --duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of - living adjustment is 3 percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of=living adjustment. The annual cost -of -living adjustment is a proportion of 3 percent determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3 percent. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of=living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. Retiree Health Insurance Subsidy Praeram Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems 'in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Retiree Health Insurance Subsidy Prozram (continued) Benefits Provided For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximiun HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree wader a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government - wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Supervisor employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06 percent of payroll and by forfeited benefits of plan members. 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) FRS Investment Flan (continued) For all membership classes, employees are immediately vested in their own contributions and are vested after 1 year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these fiends and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2020, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Supervisor. After termination and applying to receive benefits, the member may rollover vested fiords to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- suin distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. Contributions Participating employer contributions are based upon statewide rates established by the State of Florida. The Supervisor's contributions made to the plans during the years ended September 30, 2020, 2019, and 2018, were $149,241, $137,154, $130,124 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report. 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 7. Related -Party Transactions For the year ended September 30, 2020, the Board provided funding for the Supervisor that amounted to $4,478,200. At September 30, 2020, the Supervisor had a payable due to the Board of $93,087 comprised as follows: Distribution of excess appropriations $ 83,711 Distribution of interest earnings 9,291 Amounts due for various services 85 Total due to Board of County Commissioners $ 93,087 8. Risk Management Collier County, Florida (County) is exposed to various risks of loss including, but not limited to, general liability, health and life, property and casualty, auto and physical damage and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self - insured risks are reported in the basic financial statements of the County. The Supervisor participates in the County's self-insurance program. During the year ended September 30, 2020, the Supervisor was charged $307,117 by the County for participation in the risk management program. The County retains the first $500,000 per claim for workers' compensation and has purchased outside excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $250,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 mullion per claim. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $200,0001$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 3 percent wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. m Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2020 S. Risk Management (continued) The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $450,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 9. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Supervisor participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postefnployinent Benefits Other Than Pensions, are reported in the financial statements of the County. 10. Contingencies Grant funds received by the Supervisor are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the office of the Supervisor. In the opinion of management, disallowed costs, if any, would not have a significant impact on the financial position of the Supervisor. 11. Transfers Transfers between funds are for the purpose of providing matching funds to the Supervisor's grants. Transfers were required in the amount of $68,187 for the year ending September 30, 2020. 19 CliftonLarsonAllen LLP CLAconnect.com US -DEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governinent Auditing Standards issued by the Comptroller General of the United States, the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Supervisor's financial statements, and have issued our report thereon dated February 13, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Supervisor's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Supervisor's internal control. Accordingly, we do not express an opinion on the effectiveness of the Supervisor's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of Nexia 20 Internatlonal Honorable Jennifer J. Edwards Supervisor of Elections Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor's financial statements are flee from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. N� e �la 4, � � � zz— > CliftonLarsonAllen LLP Naples, Florida February 13, 2021 21 CliftonLarsonAllen LLP ► CLAconnect.com r MANAGEMENT LETTER Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of each major fund of the Collier County, Florida Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2020 and have issued our report thereon dated February 13, 2021. Auditors' Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 13, 2021, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings and recommendations reported in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(l)(1)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 iv the notes to the financial statements. A member of 22 Nexia Internatlonal Honorable Jennifer J. Edwards Supervisor of Elections Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. 1n connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(1)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Supervisor and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. ZZ->7;;, CliftonLarsonAllen LLP Naples, Florida February 13, 2021 23 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Jennifer J. Edwards Supervisor of Elections Collier County, Florida We have examined the Collier County, Florida Supervisor of Elections' (Supervisor) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2020. Management of the Supervisor is responsible for the Supervisor's compliance with the specified requirements. Our responsibility is to express an opinion on the Supervisor's compliance with the specified requirements based on our exarrri_uation. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards regiure that we plan and perform the examination to obtain reasonable assurance about whether the Supervisor complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Supervisor complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Supervisor's compliance with specified requirements. In our opinion, the Supervisor complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. This report is intended solely for the information and use of the Supervisor and the Auditor General, State of Florida and is not intended to be, and should not be, used by anyone other than these specified parties. ZZ->72 CliftonLarson Allen LLP Naples, Florida February 13, 2021 A member of Nexia 24 International Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Year Ended September 30, 2020 Collier County, Florida Tax Collector Financial Statements and Other Reports Year Ended September 30, 2020 Contents Independent Auditors' Report ..........................................................................................................1 Financial Statements Balance Sheet — General Fund......................................................................................................3 Statement of Revenues, Expenditures, and Changes in Fund Balance— General Fund.............................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual — General Fund.............................................................................5 Statement of Fiduciary Net Position — Agency Funds..................................................................6 Notes to Financial Statements.......................................................................................................7 Other Reports Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................24 ManagementLetter........................................................................................................................26 Independent Accountants' Report..................................................................................................28 CliftonLarsonAllen LLP P01w, CLAconnect.com INDEPENDENT AUDITORS' REPORT Honorable Rob Stoneburner Tax Collector Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Tax Collector, Collier County, Florida (Tax Collector), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Tax Collector'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. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 0 A member of �Nexia International Honorable Rob Stoneburner Tax Collector Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund and the aggregate remaining fund information of the Tax Collector as of September 30, 2020, and the respective changes in financial position for the year then ended and the budgetary comparison for the general fund thereof for the year ended September 30, 2020, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the financial statements, the financial statements referred to above were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are intended to present the financial position and changes in financial position of each major fund, and the aggregate remaining fund information, only for that portion of the major funds, and the aggregate remaining fund information, of Collier County, Florida that is attributable to the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2020, and the changes in its financial position for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 7, 2021 on our consideration of the Tax Collector's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the Tax Collector's 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 Tax Collector's internal control over financial reporting and compliance. CliftonLarsonAllen LLP Naples, Florida January 7, 2021 2 Collier County, Florida Tax Collector Balance Sheet — General Fund Year Ended September 30, 2020 Assets Cash and cash equivalents Accounts receivable Due from other funds Prepaid rent Prepaid expense Security deposit Total assets Liabilities and fund balance Liabilities: Accounts payable Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Total liabilities Fund balance Total liabilities and fund balance See accompanying Notes to Financial Statements. $ 4,598,526 54,437 1029007 32,252 1,000 14,868 S 4,803,090 $ 12,392 4,073,807 716,891 4,803,090 $ 4,803,090 3 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2020 Revenues: Coirnnissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service - Principal Debt Service - Interest Total expenditures Excess of revenues over expenditures Other financing uses: Proceeds from Lease Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Transfer out to Collier County Florida Board of County Commissioners - Appropriation Reserved for Subsequent Year Capital Project Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year See accompanying Notes to Financial Statements. $ 24,579,942 318,697 24,898,639 11,671,144 1,984,173 1,253,893 190,706 43,230 15,143,146 9,755,493 35,205 (4,073,807) (716,891) (5,000,000) (9,755,493) 4 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance — Budget to Actual General Fund Year Ended September 30, 2020 Revenues: Commissions and fees Miscellaneous Total revenues Expenditures: General government: Personal services Operating Capital outlay Debt Service - Principal Debt Service - Interest Total expenditures Balance ofrevenues over expenditures Other financing uses: Proceeds from Lease Distribution of excess comnn ssions and fees to Collier County, Florida Board of County Commissioners Distribution of excess commissions and fees to other governmental agencies Transfer out to Collier County Florida Board of County Commissioners - Appropriation Reserved for Subsequent Year Capital Project Total other financing uses Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance With Final Budget Budget Positive Original Final Actual (Negative) $ 23,919,960 $ 23,919,960 $ 24,579,942 $ 659,982 369,800 369,800 318,697 (51,103) 24,289,760 24,289,760 24,898,639 608,879 12,236,920 12,236,920 11,671,144 565,776 2,807,498 2,807,498 1,984,173 823,325 7,026,510 7,026,510 1,253,893 5,772,617 - - 190,706 (190,706) - - 43,230 (43,230) 22,070,928 22,070,928 15,143,146 6,927,782 2,218,832 2,218,832 9,755,493 7,536,661 See accompanying Notes to Financial Statements. - - 35,205 35,205 (1,886,801) (1,886,801) (4,073,807) (2,187,006) (332,031) (332,031) (716,891) (384,860) - - (5,000,000) (5,000,000) (2,218,832) (2,218,832) (9,755,493) (7,536,661) 5 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Agency Funds September 30, 2020 Assets Cash and cash equivalents Accounts receivable Total assets Liabilities Due to other funds Due to Collier County, Florida Board of County Commissioners Due to other governmental agencies Due to individuals and businesses Total liabilities See accompanying Notes to Financial Statements. $ 6,798,864 25,050 $ 6,823,914 $ 102,007 1,320,195 5,235,858 165,854 $ 6,823,914 0 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies Reporting Entity The Tax Collector is an elected official of the County, pursuant to the Constitution of the State of Florida, Article VIII, Section 1(d). The Tax Collector is part of the primary government of the County. Although the Florida Department of Revenue approves the Tax Collector's operating budget, the Tax Collector is responsible for the administration and the operation of the Tax Collector's office. Upon approval, the operating budget is provided to the Collier County Board of County Commissioners (Board). The Tax Collector's financial statements include only the funds of the Tax Collector's office. There are no separate legal entities (component units) for which the Tax Collector is considered to be financially accountable. Measurement Focus, Basis of Accounting, and Basis of Presentation These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General — Local Governmental Entity Audits, which allows the Tax Collector to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of Collier County, Florida in conformity with accounting principles generally accepted in the United States of America. The financial activities of the Tax Collector, as a constitutional officer, are included in the Collier County, Florida Comprehensive Annual Financial Report. These fund financial statements report detailed information about the Tax Collector. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column. 7 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheets. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector's only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector and includes all transactions not accounted for in another fund. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. Substantially all of the Tax Collector's revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, earlier if the "susceptible to accrual" criteria are met. Florida Statutes provide that the amount by which revenues exceed annual expenditures be remitted to each governmental agency or the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. Capital outlays expended in the general fund operations are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. n. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Agency funds — Fiduciary funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. Refund of "Excess Fees" Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency or the Board in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use -transfer out in the accompanying financial statements. Compensated Absences All full-time, non-exempt employees of the Tax Collector are allowed to accumulate an unlimited number of hours of unused sick leave and up to 240 hours of unused vacation leave. Exempt employees do not accrue sick time, however, many of them have a balance that will remain until they terminate employment, and vacation accrual is the same for both classes of employees. Upon termination, employees receive 100% of allowable accumulated vacation hours and a percentage of unused sick leave, depending on years of service. Vacation and sick leave payments are included in operating costs of the general fund when the payments are made to the employees. The Tax Collector does not, nor is legally required to, accumulate financial resources for these unmatured obligations. Accordingly, the liability for compensated absences is not reported in the general fund of the Tax Collector, but rather is reported in the basic financial statements of Collier County, Florida. 0 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Property Taxes Property taxes in Collier County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Florida Statutes, Section 200.071. Each year the total taxable property valuation is established by the Collier County, Florida Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed. Chapter 197, Florida Statutes, governs property tax collections as follows: Current Taxes All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November; 3% in December; 2% in January; and 1% for payment in February. Unpaid Taxes — Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The taxes assessed on the property are struck off the tax roll to the purchaser of the tax certificate. Certificates not sold are struck off to the County. The Tax Collector must receive payment before the certificates are delivered. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs. Tar Deeds Two years after the purchase of a tax certificate the owner may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are issued to the highest bidder for the property which is sold at public auction. The Clerk of the Circuit Court administers these sales. 10 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 1. Summary of Significant Accounting Policies (continued) Use of Estimates The preparation of these financial statements requires management of the Tax Collector to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates. 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector's annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector's total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 11 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 3. Cash At September 30, 2020, the carrying value of the Tax Collector's cash was as follows: 2020 Carrying Type Value Cash on hand $ 33,642 Demand deposits 11,363,748 Total cash and cash equivalents $ 11,397,390 Such amounts are reported as $4,598,526 and $6,798,864 for 2020 in the general and agency funds, respectively. Custodial Credit Risk At September 30, 2020, the Tax Collector's deposits were entirely covered by Federal Depository Insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss. Credit Risk The Tax Collector's policy is to follow the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in Florida PRIME or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; direct obligations of the United States Treasury; federal agencies and instrumentalities or interest -bearing time deposits or savings accounts in banks organized under the laws of the United States and doing business and situated in the State of Florida, savings and loan associations which are under state supervision, or in federal savings and loan associations located in the State of Florida and organized under federal law and federal supervision, provided that any such deposits are secured by collateral as may be prescribed by law. 12 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 3. Cash (continued) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk. 4. Capital Assets Capital assets used by the Tax Collector are capitalized in the basic financial statements of Collier County, Florida rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector, and are capitalized at cost in the basic financial statements of Collier County, Florida. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of Collier County, Florida. The following is a summary of changes in capital assets for the year ended September 30, 2020: October 1, Deletions/ September 30, 2019 Additions Reclassifications 2020 Capital assets not depreciated: Construction in progress $ 18,200 $ 1,140,593 $ (366,885) $ 791,908 Total assets not depreciated 18,200 1,140,593 (366,885) 791,908 Infrastructure 11,735 10,253 - 21,988 Improvements other than buildings 105,093 - - 105,093 Machinery and equipment 1,912,355 67,842 (93,762) 1,886,435 Total capital assets 2,047,383 1,218,688 (460,647) 2,805,424 Less accumulated depreciation: (1,696,312) (113,223) 87,407 (1,722,128) Total capital assets, net $ 351,071 $ 1,105,465 $ (373,240) $ 1,083,296 13 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 4. Capital Assets (continued) During the fiscal year ended September 30, 2020, costs related to completed leasehold improvements totaling $366,885 were transferred to Collier County, Florida. 5. Long -Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of Collier County, Florida: October 1, September 30, 2019 Increase Decrease 2020 Accrued compensated absences $ 1,278,140 $ 825,826 $ (740,334) $ 1,363,632 Of these liabilities, approximately $748,300 is expected to be paid during the fiscal year ending September 30, 2021, which will be included in the operating costs of the general fund when expended. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured. 14 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost -sharing multiple -employer defined benefit pension plan, to assist retired members of any State -administered retirement system in paying the costs of health insurance. Essentially all regular employees of the Tax Collector are eligible to enroll as members of the State -administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 605, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost -sharing, multiple -employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). 15 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost -sharing multiple -employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows: • Regular Class — Members of the FRS who do not qualify for membership in the other classes. • Elected County Officers Class — Members who hold specified elective offices in local government. • Senior Management Service Class (SMSQ — Members in senior management level positions. • Special Risk Class — Members who are special risk employees, such as law enforcement officers, meet the criteria to qualify for this class. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at 6 years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at 8 years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62, or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to 4 years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost -of -living adjustments to eligible participants. 16 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years' earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years' earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in -line -of -duty or regular disability and survivors' benefits. As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost -of -living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost -of -living adjustment. The annual cost -of -living adjustment is a proportion of 3% determined by dividing the sum of the pre -July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost -of -living adjustment after retirement. Detailed information about the County's proportionate share of FRS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. 17 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost -sharing multiple -employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State -administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended June 30, 2020, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State -administered retirement system must provide proof of health insurance coverage, which may include Medicare. Detailed information about the County's proportionate share of HIS's net pension liability, deferred outflows/inflows of resources, and pension expense are reported in the government -wide statements of the County. FRS Investment Plan The Florida State Board of Administration (SBA) administers the defined contribution plan officially titled the FRS Investment Plan (Investment Plan). The Investment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) FRS Investment Plan (continued) As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. Tax Collector employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the FRS defined benefit plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. For all membership classes, employees are immediately vested in their own contributions and are vested after I year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the Investment Plan, the member must have the years of service required for FRS Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Non -vested employer contributions are placed in a suspense account for up to 5 years. If the employee returns to FRS -covered employment within the 5-year period, the employee will regain control over their account. If the employee does not return within the 5-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2020, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Tax Collector. 19 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 6. Pension Plans (continued) FRS Investment Plan (continued) After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump -sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the FRS Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. CantrMa6ans Participating employer contributions are based upon statewide rates established by the State of Florida. The Tax Collector's contributions made to the plans during the years ended September 30, 2020, 2019, and 2018 were $843,840, $768,338, and $716,867, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County's comprehensive annual financial report or County -wide financial statements. 7. Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with Collier County in offering retiring employees the opportunity to continue participation in the County's health insurance plan. The participating retirees pay 100% of the premium cost applicable to an active employee. The liability and expense for other postemployment benefits, calculated in accordance with Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, are reported in the financial statements of the County. 20 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 8. Related Party Transactions During the fiscal year ended September 30, 2020, the Board paid commissions and fees to the Tax Collector that amounted to $17,890,872. At September 30, 2020, the Tax Collector had a payable due to the Board of $5,394,002 comprised as follows: 2020 Distribution of mused commissions and fees $ 4,073,807 Agency funds due to the Board 1,320,195 Total $ 5,394,002 9. Risk Management Collier County, Florida (County) is exposed to various risks of loss including but not limited to, general liability, health and life, property and casualty, auto and physical damage, and workers' compensation. The County is substantially self -insured and accounts for and finances its risk of uninsured losses through an internal service fund. All liabilities associated with these self -insured risks are reported in the basic financial statements of the County. The Tax Collector participates in the County's self-insurance program. During the year ended September 30, 2020 the Tax Collector was charged $3,052,702 by the County for participation in the risk management program. 21 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 9. Risk Management (continued) The County provides coverage for up to $500,000 per claim for workers' compensation, and has purchased outside excess coverage for up to the statutory limits for each injury or illness. The County also provides coverage for up to $500,000 per occurrence for general liability and $300,000 per occurrence for auto liability coverage and has purchased outside excess coverage for up to $5 million per claim. Negligence claims in excess of the statutory limits set in Section 768.20, Florida Statutes, which provide for limited sovereign immunity of $200,000/$300,000 per occurrence can only be recovered through an act of the State Legislature. Property claims are subject to a 5% wind deductible and a $50,000 deductible for all other perils. The County retains the first $100,000 per claim/$200,000 per occurrence for public official errors and omissions and crime coverage and has purchased outside excess coverage for up to $5 million per claim. There have been no significant reductions in insurance coverage in the last year. Settled claims have not exceeded the insurance provided by third -party carriers in any of the last three years. The County is self -insured for health claims covering all of its employees and their eligible dependents. The County retains the first $400,000 per covered member and has purchased outside excess coverage for all claims exceeding this amount. An actuarial valuation is performed each year to estimate the amounts needed to pay prior and future claims and to establish reserves. 10. Commitments and Contingencies Leases The Collier County Tax Collector leases assets for various terms under certain agreements that meet the definition of a lease under GASB Statement No. 87 - Leases. Detailed information about the Collier County Tax Collector's leases can be found in the Collier County comprehensive annual financial report or County -wide financial statements. Leases entered into by the Collier County Tax Collector are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditures, and changes in fund balance in the year of inception. Payments made in accordance with the lease terms are reported as debt service expenditures in the statement of revenues, expenditures, and changes in fund balance as they are incurred. 22 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2020 10. Commitments and Contingencies (continued) Leases (continued) During the year ended September 30, 2020, the Collier County Tax Collector entered into leases in the amount of $35,205. During the year ended September 30, 2020, the Collier County Tax Collector's payments on leases totaled $190,706. Litigation The Tax Collector is involved as a defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector 23 0 CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Rob Stoneburner Tax Collector Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Tax Collector, Collier County, Florida (Tax Collector), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Tax Collector's basic financial statements, and have issued our report thereon dated January 7, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Tax Collector's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Tax Collector's internal control. Accordingly, we do not express an opinion on the effectiveness of the Tax Collector's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. A member of Nexia 24 International Honorable Rob Stoneburner Tax Collector Compliance and Other Matters As part of obtaining reasonable assurance about whether the Tax Collector's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the Tax Collector's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Tax Collector's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 7, 2021 25 CliftonLarsonAllen LLP . CLAconnect.com MANAGEMENT LETTER Honorable Rob Stoneburner Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the general fund and the aggregate remaining fund information of the Collier County, Florida Tax Collector (Tax Collector) as of and for the year ended September 30, 2020, and have issued our report thereon dated January 7, 2021. Auditors' Responsibility 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 and Chapter 10.550, Rules of the Florida Auditor General. Other Reporting Requirements We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports which are dated January 7, 2021 should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Official Title and Legal Authority Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. See Note 1 in the notes to the financial statements. Q& A member of N2XIa 26 International Honorable Rob Stoneburner Tax Collector Financial Management Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, federal and other granting agencies, the Tax Collector and applicable management and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida January 7, 2021 27 INDEPENDENT ACCOUNTANTS' REPORT Honorable Rob Stoneburner Tax Collector Collier County, Florida CliftonLarsonAllen LLP CLAconnect.com We have examined the Collier County Tax Collector, Collier County, Florida's (Tax Collector) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. Management of the Tax Collector is responsible for the Tax Collector's compliance with the specified requirements. Our responsibility is to express an opinion on the Tax Collector's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the Tax Collector complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the Tax Collector complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the Tax Collector's compliance with specified requirements. In our opinion, the Tax Collector complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. This report is intended solely for the information and use of the Tax Collector and the Auditor General, State of Florida, and is not intended to be, and should not be, used by anyone other than these specified parties. LLB CliftonLarsonAllen LLP Naples, Florida January 7, 2021 (A member of Nexia International 28 11:IMyLTe[HMION1:10IN[670MAN aIII anQW_\01:/ Unit Type: County Unit Name: Collier Unit Status: Active Location Information Unit Information Year: 2020 Unit Dependency: Name: Ms. Crystal K. Kinzel Title: Clerk of the Circuit Court and Comptroller Phone: (239) 252-6299 Fax: Address: 3315 Tamiami Trail East #102 Naples, FL 34112-5324 Contact Information Name: Ms. Kelly Jones Title: Assistant Finance Director Phone: (239) 252-7864 Email: kelly.jones@collierclerk.com Address: 3299 Tamiami Trail East #403 Naples, FL 34112-5746 Certification Chief Financial Officer Chairman/Elected Official Name: Crystal Kinzel Name: Penny Taylor Title: Clerk of the Circuit Court and Title: Chairman, Board of County Comptroller Commissioners Yes No Have You Experienced a Financial Emergency in this year? If Yes, Have You Compiled With Section 218.503(2), Florida Statues? AFR Details Original AFR AFR Status: In Progress AFR Received Date: Audit Received Date: Submission Type: Long -Term Debt Information Long -Term Debt:$551,562,037 Audit Information Was an audit performed? Yes Audit Performed Date: 4/27/2021 Auditor Name: Clifton LarsonAl len LLP Address: 12800 University Drive, Suite 210 Ft. Myers, FL 33907 a+ a Tuesday, May 04, 2021 Packet Pg. 223 13.A.3 Revenues Report for FYE 2020 Account Code General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust Component Units Total 311000 - Ad Valorem Taxes 316,893,677 58,806,951 526,548 376,227,1 312100 - Local Option Taxes 26,062,312 26,062,31 312300 - County Ninth -Cent Voted Fuel Tax 1,594,153 1,594,1E 312410 - First Local Option Fuel Tax 7,561,191 7,561,1E 1 312420 - Second Local Option Fuel Tax 5,712,263 5,712,2E ' 312600 - Discretionary Sales Surtaxes 81,735,267 81,735,2E 315000 - Communications Service Tax (Chapter 202) 4,061,900 4,061,9( 319000 - Other General Taxes 322000 - Building Permits 638,504 25,070,912 638,5( 25,070,91 , 324110.02.01 - Impact Fees - Residential - Public Safety 974,534 974,5: 324110.02.03 - Impact Fees - Residential - Public Safety 2,891,499 2,891,4E 324120.01.03 - Impact Fees - Commercial - Public Safety 150,578 150,5; ' 324120.03.03 - Impact Fees - Commercial - Public Safety 134,302 134,3( 324120.04.03 - Impact Fees - Commercial - Public Safety 254,296 254,2E 324120.05.03 - Impact Fees - Commercial - Public Safety 60,227 60,2, 324120.09.03 - Impact Fees - Commercial - Public Safety 26,531 26,5; ' 324120.13.03 - Impact Fees - Commercial - Public Safety 88,586 88,5E 324210.02.03 - Impact Fees - Residential - Physical Environment 15,403,191 15,403,1E 324220.13.03 - Impact Fees - Commercial - Physical Environment 899,603 899,6( , 324310.02.01 - Impact Fees - Residential - Transportation 7,687,935 i 7,687,9i 324310.02.03 - Impact Fees - Residential - Transportation 8,367,743 i 8,367,7: 324320.01.03 - Impact Fees - Commercial - Transportation 1,267,574 1,267,5i 324320.03.03 - Impact Fees - Commercial - Transportation 489,223 489,2: 324320.04.03 - Impact Fees - Commercial - Transportation 490,309 490,3( ; 324320.05.03 - Impact Fees - Commercial - Transportation 2,958,710 2,958,71 324320.09.03 - Impact Fees - Commercial - Transportation 190,063 190,0E 324320.13.03 - Impact Fees - Commercial - Transportation 379,639 379,6: 324610.02.01 - Impact Fees - Residential - Culture/Recreation 3,104,795 3,104,7E 324610.02.03 - Impact Fees - Residential - Culture/Recreation 9,391,414 9,391,41 , 324710.02.01 - Impact Fees - Residential - Other 708,627 708,6: 324710.02.03 - Impact Fees - Residential - Other 2,032,122 2,032,1: 324720.01.03 - Impact Fees - Commercial - Other 140,448 140,41 I 324720.03.03 - Impact Fees - Commercial - Other 109,723 109,7: 324720.04.03 - Impact Fees - Commercial - Other 203,546 203,5z 324720.05.03 - Impact Fees - Commercial - Other 48,677 48,6, 324720.09.03 - Impact Fees - Commercial - Other 22,005 22,0( , 324720.13.03 - Impact Fees - Commercial - Other 78,082 78,0E 325100 - Special Assessments - Capital Improvement 4,668,657 950,139 5,618,7E 329000 - Other Permits, Fees & Special Assessments 291,765 847,104 528,366 1,667,2E 331100 - Federal Grant - General Government 1,876,034 1,876,0i 331200 - Federal Grant - Public Safety 58,378,954 2,169,650 6,479,335 9,278,598 8 76,306,5z , 331390 - Federal Grant - Other Physical Environment 150,445 150,4z 331410 - Federal Grant -Airport Development 2,681,433 2,681,4E ; 331420 - Federal Grant - Mass Transit I I 1 1 3,825,203 3,825,2( 331490 - Federal Grant - Other Transportation 1 2,735,1791 1 2,735,1 j _ 331500 - Federal Grant - Economic Environment 2,429,157 2,4 y C C L- IZ Tuesday, May 04, 2021 Packet Pg. 224 Account Code General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust Component Units 13.A.3 331690 - Federal Grant - Other Human Services 983,107 983,107 332000 - Other Financial Assistance - Federal Source 3,252,179 1,194,309 4,446,4F" 333000 - Federal Payments In Lieu Of Taxes 1,447,572 1,447,5, 334200 - State Grant - Public Safety 807,284 76,285 -2,548,285 -1,664,71 334340 - State Grant - Garbage/Solid Waste 131,497 131,4< 334390 - State Grant - Other Physical Environment 3,463,226 3,463,2: Q 334410 - State Grant - Airport Development 2,936,922 2,936,9: 334420 - State Grant - Mass Transit 417,500 2,234,744 2,652,2z R 334500 - State Grant - Economic Environment 382,491 382,4< 'v 334620 - State Grant - Public Welfare 1,618,364 1,618,3E 334700 - State Grant - Culture/Recreation 260,937 260,9E 335220 - State Revenue Sharing - Enhanced 911 Fee 1,925,352 1,925,3. 335420 - State Revenue Sharing - Mass Transit 4,273,044 4,273,0z 3 335490 - State Revenue Sharing - Other Transportation 237,881 1,864,211 2,102,0( 335900 - State Revenue Sharing - Other 446,545 446,5� Q 337200 - Local Government Unit Grant - Public Safety 326,775 326,7; d 337300 - Local Government Unit Grant - Physical Environment 1,000,000 1,000,0( 'y 337400 - Local Government Unit Grant - Transportation 9,552 9,5. N 341200 - Internal Service Fund Fees and Charges -29,234 110,314,307 110,285,01 341300 - Administrative Service Fees 1,003,089 1,003,0E ` t2 341900 - Other General Government Charges and Fees 13,594,465 3,780,991 75,000 567,173 18,017,6: E 342500 - Service Charge - Protective Inspection Fees 8,265 8,2E j 342600 - Service Charge - Ambulance Fees 12,928,937 12,928,9E o 343400 - Service Charge - Garbage/Solid Waste 53,689,255 53,689,2° No 343600 - Service Charge - Water/Sewer Combination Utility 162,196,690 162,196,6� N 343900 - Service Charge - Other Physical Environment Charges 2,656,625 183,706 2,840,3E 0 344100 - Service Charge - Airports 5,013,946 5,013,9z 11- 344300 - Service Charge - Mass Transit 792,954 792,9° 344900 - Service Charge - Other Transportation Charges 306,606 197,470 504,0-, 345100 - Service Charge - Housing 162,088 5,389 167,4; O 345900 - Service Charge - Other Economic Environment Charges 4,458 CL 1 CD 4,4. 346400 - Service Charge - Animal Control and Shelter Fees 85,964 16,011 101,9j 347100 - Service Charge - Libraries 93,436 93,4E 'v 347200 - Service Charge - Parks and Recreation 2,773,007 372,785 3,145,7<, 347400 - Service Charge - Special Events 32,058 32,0° 347900 - Service Charge - Other Culture/Recreation Charges 1,178,682 1,178,6E 348480 - Circuit Court Civil - Fees and Service Charges 2,133,734 2,133,7E 349000 - Other Charges for Services 871,269 4,886,020 5,757,2E _ C 351100 - Judgments and Fines - As Decided by County Court Criminal 854,099 854,0� Q 0 351200 - Judgments and Fines - As Decided by Circuit Court Criminal 450,000 450,0( p N 351900 - Judgments and Fines - Other Court Ordered 222,633 619,883 842,51 r 352000 - Fines - Library 73,954 73,9° 354000 - Fines - Local Ordinance Violation -97,930 211,023 113,T E 361100 - Interest 3,017,810 4,184,905 132,024 5,701,761 37,446 5,869,325 1,138,100 20,081,31 v 361300 - Net Increase (Decrease) in Fair Value of Investments 34,850 22,261 -5,616 52,316 621 1,077 19,787 125,Z 362000 - Rents and Royalties 561,707 4,115 565,8: Q 364000 - Disposition of Fixed Assets 229,055 422,137 -382,402 516,900 785,6� 20,5W 365000 - Sale of Surplus Materials and Scrap 7,1801 13,413 Tuesday, May 04, 2021 Packet Pg. 225 Account Code General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust Component Units 13.A.3 366000 - Contributions and Donations from Private Sources 1,923,817 410,205 2,334,022 369300 - Settlements 408,689 300,257 1,429,992 850,480 2,631,730 5,621,1.1^ 369900 - Other Miscellaneous Revenues 2,427,576 1,196,222 190,967 41,450 1,039,995 86,046 4,982,2° 381000 - Inter -Fund Group Transfers In 14,841,752 42,124,072 35,792,373 52,361,182 25,442,509 1,794,800 1 172,356,6E 383000 - Installment Purchases & Capital Lease Proceeds 256,233 101,370 357,6( C 388100 - Sale of General Capital Asset 61,262 61,2E 0 388200 - Compensation for Loss of General Capital Asset 7,024 7,0: 389400 - Proprietary - Other Grants and Donations Grand Total 17,398,157 17,398,1 ° 1,318,174,91 .O C 416,157,264 213,144,315 38,309,540 212,190,082 646,690 321,204,913 116,522,115 C LL 3 C C Q d .y C d s m L a E 0 U O N O N O O 1- Ln O d R C R C U- R 3 C C Q O N O N r C d E t V M r Q Tuesday, May 04, 2021 Packet Pg. 226 Expenditures Report for FYE 2020 13.A.3 ccount/Object Code General 1,195,616 Special Debt Service Capital Permanent Revenue Projects Enterprise Internal Service Pension Trust Component Units Total 1,195,E 66,E 511.10 - Legislative - Personnel Services 511.30 - Legislative - Operating Expenses 66,945 511.60 - Legislative - Capital Outlay 1,170 1,' C 512.10 - Executive - Personnel Services 1,038,049 1,038,( 512.30 - Executive - Operating Expenses 250,636 250,E 513.10 - Financial and Administrative - Personnel Services 6,260,764 4,200,615 10,461,'< 513.30 - Financial and Administrative - Operating Expenses 1,986,656 550,900 646,912 3,184! s 513.60 - Financial and Administrative - Capital Outlay 11,421 32,835 1,067,966 1,112,', ,s 514.10 - Legal Counsel - Personnel Services 2,262,949 2,262,E U 514.30 - Legal Counsel - Operating Expenses 181,473 181,E 514.60 - Legal Counsel - Capital Outlay 3,511 3,£ s 515.10 - Comprehensive Planning - Personnel Services 5,174,090 5,174,( G 515.30 - Comprehensive Planning - Operating Expenses 2,891,238 2,891,, G 515.60 - Comprehensive Planning - Capital Outlay 3,264 3,, 517.70 - Debt Service Payments - Debt Service 38,036,383 38,036,i a 519.10 - Other General Government - Personnel Services 42,724,234 9,017,521 51,741,, G 519.30 - Other General Government - Operating Expenses 11,893,815 3,934,103 6,524,7931 94,016,416 116,369,' s 519.60 - Other General Government - Capital Outlay 2,184,236 73,736 2,313,482 4,571 , is 519.70 - Other General Government - Debt Service 331,412 206 331,E L 519.80 - Other General Government - Grants and Aids 5,422,333 500,000 5,922,i C 521.10 - Law Enforcement - Personnel Services 147,818,734 1,070,811 148,889,E C 521.30 - Law Enforcement - Operating Expenses 34,406,769 2,224,423 991,975 37,623,' 521.60 - Law Enforcement - Capital Outlay 15,108,984 1,537,665 2,712,2471 19,358,E C 521.70 - Law Enforcement - Debt Service 296,922 3,299 300,, � 521.80 - Law Enforcement - Grants and Aids 127,611 127,E 522.30 - Fire Control - Operating Expenses 18,572 7,175 25,j 522.70 - Fire Control - Debt Service 29,702 29, � C 522.80 - Fire Control - Grants and Aids 23,597 1,858,053 1,881,E C G 523.10 - Detention/Corrections - Personnel Services 1,490,896 1,490,E D 523.30 - Detention/Corrections - Operating Expenses 64,706 932,541 997,', 523.60 - Detention/Corrections - Capital Outlay 296,744 296,1 C 524.10 - Protective Inspections - Personnel Services 16,900,907 16,900,E C 524.30 - Protective Inspections - Operating Expenses 6,926,927 6,926,E li 524.60 - Protective Inspections - Capital Outlay 238,912 238,E 525.10 - Emergency and Disaster Relief - Personnel Services 962,297 203,658 1,165,E _ 525.30 - Emergency and Disaster Relief - Operating Expenses 850,409 863,354 48,674 1,762 , G 525.60 - Emergency and Disaster Relief - Capital Outlay 38,315 200,509 342,634 581,E c 525.70 - Emergency and Disaster Relief - Debt Service 237,896 237,E C 526.10 - Ambulance and Rescue Services - Personnel Services 27,268,934 27,268,E t, 526.30 - Ambulance and Rescue Services - Operating Expenses 68,078 6,535,613 6,603,E C 526.60 - Ambulance and Rescue Services - Capital Outlay 2,402,335 2,402„ G 526.70 - Ambulance and Rescue Services - Debt Service 8,668 8,E d 527.30 - Medical Examiners - Operating Expenses 1,737,352 1,737„ 529.30 - Other Public Safety - Operating Expenses 60,055 60,( G 529.80 - Other Public Safety - Grants and Aids 151,000 151,( 533.10 - Water Utility Services - Personnel Services 140,113 13,346,130 13,486,: 29,554,721 533.30 - Water Utility Services - Operating Expenses 189,705 29,365,016 Tuesday, May 04, 2021 Packet Pg. 227 ilkccount/Object Code General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust 533.60 - Water Utility Services - Capital Outlay 1,170 533.70 - Water Utility Services - Debt Service 8,506 534.10 - Garbage/Solid Waste - Personnel Services 3,854,864 534.30 - Garbage/Solid Waste - Operating Expenses 45,161,319 534.70 - Garbage/Solid Waste - Debt Service 95,594 535.10 - Sewer/Wastewater Services - Personnel Services 26,688,373 535.30 - Sewer/Wastewater Services - Operating Expenses 31,466,895 535.70 - Sewer/Wastewater Services - Debt Service 6,986,196 536.30 - Water/Sewer Services - Operating Expenses 48,113,763 537.10 - Conservation/Resource Management - Personnel Services 618,700 4,029,438 537.30 - Conservation/Resource Management - Operating Expenses 133,412 3,400,624 137,777 47,525 537.60 - Conservation/Resource Management - Capital Outlay 1,719,527 1,039,046 538.10 - Flood Control/Stormwater Control - Personnel Services 1,825,583 538.30 - Flood Control/Stormwater Control - Operating Expenses 2,773,143 1,683,707 538.60 - Flood Control/Stormwater Control - Capital Outlay 263,326 5,637,507 539.10 - Other Physical Environment - Personnel Services 1,054,161 539.30 - Other Physical Environment - Operating Expenses 3,225,729 1,726,215 539.60 - Other Physical Environment - Capital Outlay 5,187,516 106,067 539.70 - Other Physical Environment - Debt Service 7,848 541.10 - Road/Street Facilities - Personnel Services 305,996 18,528,939 541.30 -Road/Street Facilities -Operating Expenses 22,209 23,408,362 11,027,001 541.60 - Road/Street Facilities - Capital Outlay 5,065,514 19,168,607 541.70 - Road/Street Facilities - Debt Service 17,569 542.10 - Airports - Personnel Services 1,306,089 542.30 - Airports - Operating Expenses 4,835,286 542.70 - Airports - Debt Service 12,265 544.10 - Mass Transit - Personnel Services 528,431 544.30 - Mass Transit - Operating Expenses 13,260,628 549.30 - Other Transportation - Operating Expenses 23,510 549.60 - Other Transportation - Capital Outlay 544,712 553.10 - Veterans Services - Personnel Services 275,977 553.30 - Veterans Services - Operating Expenses 34,848 553.60 - Veterans Services - Capital Outlay 1,170 554.10 - Housing and Urban Development - Personnel Services 288,409 554.30 - Housing and Urban Development - Operating Expenses 668,080 554.60 - Housing and Urban Development - Capital Outlay 2,340 554.80 - Housing and Urban Development - Grants and Aids 5,000,784 559.10 - Other Economic Development - Personnel Services 320,017 525,371 559.30 - Other Economic Development - Operating Expenses 506,160 1,132,913 559.60 - Other Economic Development - Capital Outlay 24,560 77,656 559.70 - Other Economic Development - Debt Service 216,800 34,991 559.80 - Other Economic Development - Grants and Aids 631,822 10,384 562.10 - Health - Personnel Services 2,141,242 562.30 - Health - Operating Expenses 1,275,345 177,714 90,629 562.60 - Health - Capital Outlay 1,170 11,519 36,956 562.80 - Health - Grants and Aids 1,491,500 563.80 - Mental Health - Grants and Aids 2,335,934 564.10 - Public Assistance - Personnel Services 1,036,1001 1,857,625 Component 13.A.3 Units 1,1701 8,£ 3,854,£ 95,£ 0 26,688,i Q' d 31,466,£ W 6,986,' M 48,113, v C 4,648,' _ LL 3,719,' R 2,758,E _ 1,825,E C 4,456,E Q (D 5,900,E > 1,054,' W C 4,951,5 4) 5,293,E L 7,£ E 18,834,5 0 34,457,E L% 24,234,' N 17,E N 1,306,( 4,835,, co 12,, 528,, 13,260,E 23,E Q 544, w 275,f 34,E 'v 1, C 288,1 C 668,( LL 2,i L9 7 5,000,E C C 845,: Q 1,639,( N 102,: N 251,E r 642,, C ty 2,141,', E 1,543,E V 49,E 1,491,E Q 2,893, tzoI Tuesday, May 04, 2021 Packet Pg. 228 ilkccount/Object Code General Special Revenue Debt Service Capital Projects Permanent Enterprise Internal Service Pension Trust Component 13.A.3 Units 564.30 - Public Assistance - Operating Expenses 3,609,694 3,394,373 7,004,067 564.60 - Public Assistance - Capital Outlay 11,842 141,718 153,E 564.70 - Public Assistance - Debt Service 17,576 17,E 564.80 - Public Assistance - Grants and Aids 699,366 1,775,796 2,475,' 569.10 - Other Human Services - Personnel Services 268,328 268,, p 569.30 - Other Human Services - Operating Expenses 23,009 50,265 73,: d 569.60 - Other Human Services - Capital Outlay 2,671 2,E 569.80 - Other Human Services - Grants and Aids 15,000 15,( cC 571.10 - Libraries - Personnel Services 4,037,787 28,884 4,066,E v C 571.30 - Libraries - Operating Expenses 563,409 254,402 34,926 852,, C 571.60 - Libraries - Capital Outlay 184,746 708,328 893,( jL 572.10 - Parks/Recreation - Personnel Services 5,923,424 10,649,711 16,573,' 572.30 - Parks/Recreation - Operating Expenses 5,111,537 12,187,732 1,634,151 18,933, C 572.60 - Parks/Recreation - Capital Outlay 293,027 1,905,195 57,570,677 59,768,E 572.70 - Parks/Recreation - Debt Service 18,551 2,111 20,E 572.80 - Parks/Recreation - Grants and Aids 500,000 1,093,825 1,593,E 573.10 - Cultural Services - Personnel Services 1,148,891 1,148,E N C 573.30 - Cultural Services - Operating Expenses 989,111 183,097 1,172,, 573.60 - Cultural Services - Capital Outlay 60,330 46,740 107,( d 575.10 - Special Facilities - Personnel Services 180,518 180,E C 575.30 - Special Facilities - Operating Expenses 1,724,218 1,724,, p 575.60 - Special Facilities - Capital Outlay 629,464 629,: V 581.90 - Interfund Transfers Out - Other Uses 93,788,393 33,009,167 16,325 34,584,762 10,581,441 376,600 172,356,E N 602.30 - State Attorney Administration - Operating Expenses 410,222 365,116 775,% N 602.60 - State Attorney Administration - Capital Outlay 23,465 23,E 603.30 - Public Defender Administration - Operating Expenses 123,773 123,; 00 603.60 - Public Defender Administration - Capital Outlay 14,552 14,E LA 604.10 - Clerk of Court Administration - Personnel Services 634,274 634,: 604.30 - Clerk of Court Administration - Operating Expenses 243,179 26,020 269,' C 605.30 - Judicial Support - Operating Expenses 39,938 9,732 49,E CL 616.10 - Clinical Evaluations - Personnel Services 60,185 60,' (D 616.30 - Clinical Evaluations - Operating Expenses 8,481 8,� 634.10 - Clerk of Court - Personnel Services 1,903,050 1,903,( 'v 634.30 - Clerk of Court - Operating Expenses 88,362 88,, 674.10 - Clerk of Court - Personnel Services 1,877,196 1,877,' 674.30 - Clerk of Court - Operating Expenses 92,765 LL 92, , 694.10 - Clerk of Court - Personnel Services 272,898 272,E 3 694.30 -Clerk of Court -Operating Expenses 3,414 3,1 C 704.30 - Public Guardian - Operating Expenses 192,001 192,( Q 712.10 - Courthouse Facilities - Personnel Services 972,613 972,E N 712.30 - Courthouse Facilities - Operating Expenses 406,661 406,E N 712.60 - Courthouse Facilities - Capital Outlay 4,497 4,� j. 739.10 - Other County Court -Criminal Costs - Personnel Services 93,433 93,E tv 739.30 - Other County Court -Criminal Costs - Operating Expenses 525 E E 739.80 -Other County Court -Criminal Costs -Grants and Aids 3,000 3,( v 761.30 - Court Administration - Operating Expenses 522,8001 1 522,E 764.10 - Clerk of Court - Personnel Services 761,0901 761,( Q Tuesday, May 04, 2021 Packet Pg. 229 ilkccount/Object Code General Special Debt Service Capital Permanent Enterprise Internal Pension Trust Component 13.A.3 Revenue Projects Service Units 764.30 - Clerk of Court- Operating Expenses 1,191,496 1,191,496 Grand Total 403,994,510 211,287,331 38,052,708 154,332,796 47,525 269,415,505 103,410,743 1,180,541,1 O 00 ti Lr) r L O Q (1) w I.L R Q O N O N r C d E t V M r Q Tuesday, May 04, 2021 Packet Pg. 230 Data Element Worksheet Report for FYE: 2020, Collier 13.A.3 Tuesday, May 04, 2021 Packet Pg. 231 Affiliated Entity Type Total Revenues Total Total Debt Expenditures Special District - Collier County Airport Authority Blended in Primary Report $12,164,265 $6,168,640 $0 Special District - Collier County Community Redevelopment Agency Blended in Primary Report $3,577,846 $3,034,544 $3,291,218 Special District - Collier County Educational Facilities Authority Discretely Reported $0 $17,265 $93,806,592 Special District - Collier County Health Facilities Authority Discretely Reported $3 $4,765 $201,101,754 Special District - Collier County Housing Finance Authority Discretely Reported $10,262 $4,675 $20,498,361 Special District - Collier County Industrial Development Authority Discretely Reported $60,500 $4,706 $153,313,638 Other Entity - Collier County Metropolitan Planning Organization Blended in Primary Report $1,477,507 $1,506,188 $0 Special District - Collier County Water -Sewer District Blended in Primary Report $203,173,822 $165,728,578 $237,127,032 Special District - Goodland Water District Not a Component Unit 13.A.3 O O ti LO r L O Q W C M U- R Q O N O N r C d E t V R r Q Tuesday, May 04, 2021 Packet Pg. 232