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CAFR Year End 09/30/2024Collier County, Florida Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 Page 814 of 5415 Page 815 of 5415 ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2024 COLLIER COUNTY, FLORIDA BOARD OF COUNTY COMMISSIONERS CHRIS HALL, CHAIRMAN – DISTRICT 2 BURT L. SAUNDERS, ESQ., VICE-CHAIRMAN – DISTRICT 3 RICK LOCASTRO – DISTRICT 1 DAN KOWAL – DISTRICT 4 WILLIAM L. MCDANIEL, JR. – DISTRICT 5 COUNTY MANAGER AMY PATTERSON COUNTY ATTORNEY JEFFREY A. KLATZKOW CLERK OF THE CIRCUIT COURT AND COMPTROLLER 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 Page 816 of 5415 INTRODUCTORY SECTION Transmittal Letter ��i Certificate of Achievement ��vi Organizational Chart ��viii FINANCIAL SECTION Independent Auditors’ Report ��1 Management’s Discussion and Analysis (Unaudited)��4 Basic Financial Statements Statement of Net Position ��16 Statement of 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 Balance – Governmental Funds ��22 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of 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 Grants and Shared Revenue - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) ��29 Disaster Recovery - Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) ��30 Statement of Net Position – Proprietary Funds ��31 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ��33 Statement of Cash Flows – Proprietary Funds ��34 Statement of Fiduciary Net Position ��36 Statement of Changes in Fiduciary Net Position ��37 Notes to the Financial Statements ��39 Required Supplementary Information Schedule of the County’s Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan ��86 Schedule of County Contributions - Florida Retirement System Pension Plan ��86 Schedule of the County’s Proportionate Share of the Net Pension Liability - Retiree Health Insurance Subsidy Program ��86 Schedule of County Contributions - Retiree Health Insurance Subsidy Program ��86 Schedule of Changes in the Collier County Total OPEB Liability and Related Ratios ��88 Combining and Individual Fund Financial Statements and Other Supplemental Information Nonmajor Governmental Funds Combining Balance Sheet ��94 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ��102 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Non-GAAP) ��110 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS Page 817 of 5415 FINANCIAL SECTION (CONTINUED) Combining and Individual Fund Financial Statements and Other Supplemental Information (Continued) Nonmajor Enterprise Funds Combining Statement of Net Position ��136 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ��137 Combining Statement of Cash Flows ��138 Internal Service Funds Combining Statement of Net Position ��140 Combining Statement of Revenues, Expenses and Changes in Net Position��141 Combining Statement of Cash Flows ��142 Fiduciary Funds Combining Statement of Fiduciary Net Position - Custodial Funds ��146 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds ��147 Component Units Combining Statement of Net Position ��150 Combining Statement of Activities ��151 Other Supplemental Information Schedule of Receipts and Expenditures of Funds Related to the Deepwater Horizon Oil Spill ��154 STATISTICAL SECTION Net Position by Component ��158 Change in Net Position ��160 Governmental Activities Tax Revenues by Source ��162 Fund Balances of Governmental Funds ��163 Changes in Fund Balances of Governmental Funds ��164 Assessed Value and Estimated Actual Value of Taxable Property ��166 Property Tax Rates – All Direct and Overlapping Governments ��168 Principal Taxpayers County-Wide ��169 Property Tax Levies and Collections ��170 Ratios of Outstanding Debt by Type ��172 Direct, Overlapping and Underlapping Governmental Activities Debt ��174 Pledged-Revenue Coverage ��175 Demographic and Economic Statistics ��176 Principal Employers ��177 Budgeted Full-Time Equivalent County Employees by Function ��178 Operating Indicators by Function ��179 Capital Asset Statistics by Function ��180 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS Page 818 of 5415 SINGLE AUDIT/SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE Independent Auditors’ Report on Internal Control Over Financial Reporting and Compliance ��183 Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project ��185 Schedule of Expenditures of Federal Awards and State Financial Assistance ��188 Notes to the Schedule of Expenditures of Federal Awards ��194 Schedule of Findings and Questioned Costs ��196 Summary Schedule of Prior Audit Findings ��198 COLLIER COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS AUDITOR GENERAL Management Letter................................................................................................................................................................. 203 Independent Accountants' Report...........................................................................................................................................208 ANNUAL DEBT REPORT Table 1. Calculation of Collier County General Governmental Debt Ratio.............................................................................. 213 Table 2. Calculation of Collier County Enterprise Debt Ratios ................................................................................................ 214 Summary Debt Statement for Fiscal Year 2024 ........................................................................................................................215 CLERK OF THE CIRCUIT COURT AND COMPTROLLER PROPERTY APPRAISER SHERIFF SUPERVISOR OF ELECTIONS TAX COLLECTOR Page 819 of 5415 INTRODUCTORY SECTION Page 820 of 5415 Page 821 of 5415 March 25, 2025 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 Annual Comprehensive Financial Report for the fiscal year ended September 30, 2024. This report was prepared by the Finance and Accounting Department of the Clerk of the Circuit Court and Comptroller as part of the Clerk’s legally prescribed duties. Responsibility for the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the County’s 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 annual 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, 2024, the independent auditor, CliftonLarsonAllen 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. 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. 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. i Page 822 of 5415 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. The fiscal year for county government begins October 1 and ends September 30. Budgets are prepared annually and formal budgetary integration is employed as a management control throughout the year. The level of budgetary control, the level at which expenditures cannot legally exceed the appropriated amount, is established at the departmental level for personal services, operating expenditures and non-project related capital outlay, respectively. Debt service and transfers are controlled at the fund level and capital projects and grants are controlled at the individual project or grant level. All governmental funds adopted annual budgets for fiscal year 2024. 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 largest county by land area, is on the southwest coast of Florida, directly west of Miami. With a 2024 population of 408,381 (an 18.8% 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. 372,322) and three municipalities: the Cities of Naples (pop. 19,390), Marco Island (pop. 16,288) and Everglades (pop. 381). The County’s economic base is a diverse mix concentrated in health care, tourism, and construction 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 continues to grow and is 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 Amazon and Uline opening distribution centers. Sports tourism is a growing segment of Collier’s economy. The Minto United States Open Pickleball Championship continues to expand and attracts national and international participation. A fixture since 2016, the United States Open Pickleball Championship is billed as the ultimate pickleball event, drawing over 40,000 attendees annually. The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near I-75 and Collier Boulevard. The Complex contains eight multipurpose fields, an outdoor fitness center, a food truck pavilion and a championship stadium that can accommodate 5,000. 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. The Complex also hosts a variety of concerts and specialty events and beginning in 2025 will be the official home of the FC Naples soccer club, a USL League One expansion team. Construction of a Great Wolf Lodge, located adjacent to the Paradise Sports Complex, was completed in the Fall of 2024. This was the brand’s 22st resort and features 500 rooms, including family-friendly suites and a sprawling 92,000 square-foot indoor water park. The project received $15M in tax increment incentives from Collier County’s Interchange Activity Center No. 9 Innovation Zone. 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 Zone 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 respective Zones are in process. Taxable property market valuation for fiscal year 2024 totaled $138.0 billion, a very high $337,920 per capita. The County’s millage for General Fund operations in fiscal year 2024 remained at only 32% of the statutory 10 mill limit, or $3.20 per thousand dollars of taxable value. Unemployment levels in recent years approximate the statewide average. The 2024 annual County unemployment rate stood at 3.7%, which is slightly higher than the statewide average of 3.3%. Income levels are high, with a per capita personal income of $133,186. From a macro perspective the US economy continues to show sufficient strength for the Federal Reserve to take a systematic approach to the easing of interest rates. The current situation lends credence to the possibility that a “soft landing”, versus a recession, may have been achieved by the Federal Reserve’s monetary policy. Multiple quarter-point rate cuts have occurred in recent months and inflation continues to move lower, though on an uneven path. ii Page 823 of 5415 The County experienced record setting tourism with bed tax collections of $48.6M during fiscal year 2024. Bed tax is levied at 5% on overnight stays of six months or less. This revenue benchmark was set even as half-cent sales tax revenues were down over 5% when compared with fiscal year 2023. During fiscal year 2024 the County’s infrastructure surtax was sunsetted as the aggregate goal of $490M in revenue was surpassed. The Clerk and Comptroller continually monitors both economic and policy impacts on revenue sources, including sales taxes, tourist taxes, gas taxes, impact fees and other revenues impacted by economic conditions along with the County’s operating and capital cash flow requirements. This monitoring process directly influences the investment approach and overall duration of the portfolio. The County’s investments are managed to maintain financial flexibility and preserve capital through rising and declining interest rate cycles. 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 2025-2029 is $2.0 billion. Included in the County’s current CIP for fiscal years 2025-2029 are approximately $865.8 million in water and wastewater projects, $551.4 million in transportation projects, $231.7 million in stormwater projects and $172.3 million in government facilities projects. In addition, parks and recreation projects of approximately $43.0 million are planned, as well as $52.9 million for tourist development funded projects, $30.7 million in solid waste projects, $22.3 million in public safety projects and miscellaneous projects totaling $29.9 million. Approximately $348.5M of the fiscal year 2025–2029 Capital Improvement Program is planned to be funded by property taxes, with $346.9M to be funded by user fees. The remainder will be funded by a mixture of infrastructure sales taxes carried forward, impact fees, gas taxes, tourist taxes and sources yet to be determined. RELEVANT FINANCIAL POLICIES Relevant financial policies include the appropriation of carryforward as a funding source in the following year and maintaining the General Fund year end cash balance at a minimum of 15% of actual expenditures for the fiscal year then ended. Additional policies include the assessment of impact fees at such levels as allowed by law and supported by studies and funding the self-insured workers’ compensation and property and casualty programs at an actuarial based confidence interval of 75%. The self-insured group health program will be funded to include the statutorily required reserves plus an amount equal to the expected cost variance with a 99% certainty. 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. Lesser 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 general governmental revenues from current sources of 13%. iii Page 824 of 5415 The Clerk of the Circuit Court and Comptroller’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), other intergovernmental pools, U.S. Treasury securities, U.S. agency securities, commercial paper, corporate bonds and bankers’ acceptances. The par weighted average maturity of the total managed pooled portfolio, to first call or maturity, was 1.11 years as of September 30, 2024. The total return for fiscal year 2024 was 5.83%, the result of taking advantage of favorable short term interest rates and the recognition of unrealized gains. Investment income of $79.1 million was realized during fiscal year 2024. Changes in the fair value of investments are recorded as part of interest earnings when presented in the financial statements. MAJOR INITIATIVES While the County is currently focused on many initiatives, some of the most significant include the following: ● Priority-based budgeting approach to enhance organizational performance ● Development of the Golden Gate Golf Course property, workforce and first responder housing and mental health initiatives ● Upgrades to Information Technology infrastructure and the County’s various management, financial and accounting software ● Park system infrastructure renewal and replacement and construction of phase two of the Big Corkscrew Island Regional Park ● Construction of phase three of the Paradise Coast Sports Complex ● Major upgrade or replacement and hardening of the County ’s 800 MHz radio network ● Sheriff ’s capital projects including various maintenance and facility upgrades ● Ongoing funding for stormwater maintenance and continued capital infrastructure upgrades ● Consideration of the operational and maintenance implications associated with construction projects funded by the local option infrastructure sales tax AWARDS AND ACKNOWLEDGEMENTS Collier County earned the Government Finance Officers Association of the United States and Canada (GFOA) Triple Crown award as one of only 350 governments receiving this honor. The Triple Crown award consists of: ● The Certificate of Achievement for Excellence in Financial Reporting to Collier County for its annual comprehensive financial report for the fiscal year ended September 30, 2023. ● The Outstanding Achievement in Popular Annual Financial Reporting to Collier County for its citizens report for the fiscal year ended September 30, 2023. ● The Distinguished Budget Presentation Award to Collier County for its separately issued annual budget for the fiscal year beginning October 1, 2023. To be awarded this honor, a government must meet the high standards of all three separate award programs. Each award program recognizes governments that produce reports that transparently communicate their financial situations and meet all program standards. See https;//www.gfoa.org /awards. In addition, 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, 2023. The preparation and publication of this Annual Comprehensive 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 Suzanne Boothby, Grants Manager, Leslie Miller, Operations Manager and all of the staff of the Finance and Accounting Department. iv Page 825 of 5415 Sincere appreciation is also expressed to CliftonLarsonAllen, the Board of County Commissioners, the Constitutional Officers, the County Manager, Deputy County Managers, 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 Page 826 of 5415 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 annual comprehensive financial report for the fiscal year ended September 30, 2023. This was the thirty-eighth 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. vi Page 827 of 5415 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Collier County Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2023 Executive Director/CEO Page 828 of 5415 Residents Chief Hearing Examiner Andrew W.J. Dickman County Attorney Jeffrey Klatzkow County Manager Amy Patterson Chief of Staff Communications, Government & Public Affairs Corporate Compliance & Continuous Improvement Strategic Initiatives Deputy County Manager Ed Finn Community Redevelopment Areas Corporate Financial & Management Services Facilities Management Fleet Management Pelican Bay Services Tourism Public Services Department (Vacant) Community & Human Services Domestic Animal Services Department of Health Library Museum Operations Support Parks & Recreation University Extension Service Public Utilities Department Dr. G. George Yilmaz Engineering & Project Management Operations Support Solid Waste Wastewater Water Growth Management Community Development Department James French Building Plan Review & Inspection Code Enforcement Community Planning & Resiliency Development Review Economic Development & Housing Operations & Regulatory Management Zoning Corporate Business Operations Kenneth Kovensky Human Resources Information Technology Procurement Services Risk Management Sheriff Kevin Rambosk Transportation Management Services Department Trinity Scott Capital Project Planning & Program Management Fiscal & Grant Services Operations & Performance Mgmt. Public Transit & Neighborhood Enh. Road Bridge & Stormwater Maint. Transportation Engineering Public Safety Michael Choate Emergency Management Emergency Medical Services Board of County Commissioners Rick LoCastro, District 1 Chris Hall, District 2 Burt Saunders, District 3 Dan Kowal, District 4 William L. McDaniel, Jr, District 5 Property Appraiser Abe Skinner Tax Collector Rob Stoneburner Judicial Courts & Judges Charles Rice Supervisor of Elections Melissa Blazier Clerk of the Circuit Courts Crystal K. Kinzel Page 829 of 5415 FINANCIAL SECTION Page 830 of 5415 Page 831 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT Honorable Board of County Commissioners Collier County, Florida Report on the Audit of the Financial Statements Opinions 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 (the County), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, Bayshore Gateway Community Redevelopment Agency Fund, Immokalee Community Redevelopment Agency Fund, Grants and Shared Revenue Fund, and Disaster Recovery Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Page 832 of 5415 Honorable Board of County Commissioners Collier County, Florida Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 County’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedules of the County’s proportionate share of the net pension liability and County contributions, and the schedules of other postemployment benefits total OPEB liability and related ratios for the retiree health plans be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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. 2 Page 833 of 5415 Honorable Board of County Commissioners Collier County, Florida Supplementary 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, schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill, and schedule of expenditure 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, Rules of the Auditor General for Local Governmental Entity Audits are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining and individual nonmajor fund financial statements, schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill, and schedule of expendi ture 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, Rules of the Auditor General for Local Governmental Entity Audits are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 5, 2025, 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. CliftonLarsonAllen LLP Naples, Florida March 5, 2025 3 Page 834 of 5415 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, 2024. 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, 2024 by $4,206,496,986. Of this amount, $533,154,096 represents unrestricted net position and may be used to meet future County obligations. Unrestricted net position increased by $137,325,457 from the previous year. • The County’s total net position increased by $343,703,674 when compared to fiscal year 2023, with a $253,756,011 increase from governmental activities and a $89,947,663 increase resulting from business-type activities. • As of September 30, 2024, Collier County’s governmental fund financial statements showed combined ending fund balances of $1,486,108,936, an increase of $151,345,087 over the previous fiscal year. Of the total combined ending governmental fund balance, $113,470,230 is reported as unassigned. • The General Fund reported an unassigned fund balance of $133,338,373 at September 30, 2024, an increase in unassigned General Fund balance of $4,328,534 when compared to September 30, 2023. • The County’s proportionate share of the Florida Retirement System’s defined pension benefit and health insurance subsidy net pension liabilities was $432,806,702 as of September 30, 2024, a decrease of $16,114,101 from the previous year. • Total bonded debt, notes, outstanding loans, leases and subscription based IT arrangements (SBITA) owed by Collier County decreased by $36,574,026 during fiscal year 2024, with a decrease in governmental activities debt of $20,957,749 and a decrease in business-type activities debt of $15,616,277. Additional information on debt activity can be found in Note 7 to the financial statements beginning on page 58. 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, 2024. 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 certain unused 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. 4 Management’s Discussion and Analysis FINANCIAL SECTION Page 835 of 5415 Governmental funds Governmental funds, presented on pages 20 to 30, 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 near term 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 six major funds, the General Fund and the Bayshore Gateway and Immokalee Community Redevelopment Agencies, Grants and Shared Revenue Fund, Disaster Recovery 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 the Infrastructure Sales Tax capital project major fund and non-major governmental funds required to adopt an annual budget are 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 31 to 35 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. Internal service funds are included in governmental activities in the Government-wide financial statements. 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 begin on page 36 of this report. The County uses a private purpose trust fund for the Sheriff’s employee flexible spending account. The County also uses custodial funds to report amounts that the government has custody of, but does not have control over the use of the funds. 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 39 to 83 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 91. 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 custodial funds. Additional information about the County, which may be of interest to the reader, can be found under the Statistical section 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. 5 FINANCIAL SECTION Management’s Discussion and Analysis Page 836 of 5415 Page break Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. Assets and deferred outflows exceed liabilities and deferred inflows by $4,206,496,986 as of the fiscal year ending September 30, 2024 for Collier County. Positive balances were reported in all categories of net position in the governmental and business-type activities for fiscal year 2024. Collier County’s net position at September 30, 2024 increased by $137,325,457 for unrestricted net position and increased $110,639,357 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 $46,005,674 increase in restricted net position related to Tourist Development, a $39,451,584 increase in restricted net assets related to growth related capital expansion and a $19,721,923 increase in restricted net assets related to transportation capital projects. The increase in unrestricted net position was mainly due to the 60.0% increase in interest earnings. 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 61.4% of net position as of September 30, 2024, compared to 64.4% as of September 30, 2023. During fiscal year 2024, the County’s net investment in capital assets increased by $95,738,860, 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, 2023 and 2024, shown in condensed form: Collier County’s Schedule of Net Position (in millions) Total Business-type Percentage Governmental Activities Activities Total Change 2024 2023 2024 2023 2024 2023 2023-2024 Current and other assets $ 1,737.9 $ 1,575.7 $ 622.4 $ 581.2 $ 2,360.3 $ 2,156.9 9.4% Capital assets, net 2,014.5 1,938.7 1,145.4 1,099.1 3,159.9 3,037.8 4.0% Total assets 3,752.4 3,514.4 1,767.8 1,680.3 5,520.2 5,194.7 6.3% Deferred outflows of resources 124.7 109.8 22.8 21.9 147.5 131.7 12.0% Current liabilities 185.0 180.3 58.9 51.8 243.9 232.1 5.1% Long-term liabilities 753.0 777.9 398.2 411.9 1,151.2 1,189.8 (3.2)% Total liabilities 938.0 958.2 457.1 463.7 1,395.1 1,421.9 (1.9)% Deferred inflows of resources 48.3 29.0 17.8 12.7 66.1 41.7 58.5% Net position: Net investment in capital assets 1,671.2 1,604.9 912.4 882.9 2,583.6 2,487.8 3.9% Restricted 1,040.1 932.5 49.7 46.7 1,089.8 979.2 11.3% Unrestricted 179.5 99.6 353.6 296.2 533.1 395.8 34.7% Total net position $ 2,890.8 $ 2,637.0 $ 1,315.7 $ 1,225.8 $ 4,206.5 $ 3,862.8 8.9% 6 Management’s Discussion and Analysis FINANCIAL SECTION Page 837 of 5415 Collier County’s Schedule of Changes in Net Position (in millions) Total Percentage Governmental Activities Business-type Activities Total Change 2024 2023 2024 2023 2024 2023 2023-2024 Revenues Program revenues: Fines, fees and charges for services $ 87.7 $ 83.7 $ 322.8 $ 283.6 $ 410.5 $ 367.3 11.8% Operating grants and contributions 82.4 73.7 7.3 42.5 89.7 116.2 (22.8)% Capital grants and contributions 61.3 52.1 47.4 47.8 108.7 99.9 8.8% General revenues: Property taxes 531.5 518.9 - - 531.5 518.9 2.4% Other taxes and shared revenues 198.2 287.8 - - 198.2 287.8 (31.1)% Interest earnings 100.3 62.1 33.6 21.6 133.9 83.7 60.0% Miscellaneous 16.1 18.9 0.2 1.2 16.3 20.1 (18.9)% Total revenues 1,077.5 1,097.2 411.3 396.7 1,488.8 1,493.9 (0.3)% Expenses General government 175.7 179.6 - - 175.7 179.6 (2.2)% Public safety 321.0 330.0 - - 321.0 330.0 (2.7)% Physical environment 52.2 47.9 - - 52.2 47.9 9.0% Transportation 97.3 97.6 - - 97.3 97.6 (0.3)% Economic environment 27.9 43.4 - - 27.9 43.4 (35.7)% Human services 34.1 26.4 - - 34.1 26.4 29.2% Culture and recreation 83.1 86.6 - - 83.1 86.6 (4.0)% Interest on long-term debt 10.4 10.3 - - 10.4 10.3 1.0% Water and sewer - - 203.3 190.6 203.3 190.6 6.7% Solid waste - - 61.7 85.5 61.7 85.5 (27.8)% Emergency medical services - - 49.1 43.8 49.1 43.8 12.1% Airport authority - - 11.5 11.8 11.5 11.8 (2.5)% Mass transit - - 17.8 17.2 17.8 17.2 3.5% Total expenses 801.7 821.8 343.4 348.9 1,145.1 1,170.7 (2.2)% Increase in net position before net transfers 275.8 275.4 67.9 47.8 343.7 323.2 6.3% Transfers, net (22.0) (18.3) 22.0 18.3 - - 0.0% Change in net position 253.8 257.1 89.9 66.1 343.7 323.2 6.3% Net position – beginning 2,637.0 2,379.9 1,225.8 1,159.7 3,862.8 3,539.6 9.1% Net position – ending $ 2,890.8 $ 2,637.0 $ 1,315.7 $ 1,225.8 $ 4,206.5 $ 3,862.8 8.9% 7 FINANCIAL SECTION Management’s Discussion and Analysis Page 838 of 5415 Property Taxes: 49.3%Property Taxes: 49.3%Property Taxes: 49.3% Fines, Fees and ChargesFines, Fees and Charges for Services: 8.2%for Services: 8.2% Fines, Fees and Charges for Services: 8.2% Operating Grants andOperating Grants and Contributions: 7.7%Contributions: 7.7% Operating Grants and Contributions: 7.7% Capital Grants andCapital Grants and Contributions: 5.7%Contributions: 5.7% Capital Grants and Contributions: 5.7% Gas Taxes: 2.4%Gas Taxes: 2.4%Gas Taxes: 2.4% Sales Taxes: 6.0%Sales Taxes: 6.0%Sales Taxes: 6.0% Tourist Taxes: 4.5%Tourist Taxes: 4.5%Tourist Taxes: 4.5% Miscellaneous revenue: 3.8%Miscellaneous revenue: 3.8%Miscellaneous revenue: 3.8% Infrastructure sales tax: 3.1%Infrastructure sales tax: 3.1%Infrastructure sales tax: 3.1% Interest earnings: 9.3%Interest earnings: 9.3%Interest earnings: 9.3% Total Revenues by Type Governmental Activities Fiscal Year 2024 Expenses and program 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. Program Revenues and Expenses Governmental Activities Fiscal Year 2024 MillionsRevenues Expenses General Government Public Safety Physical Environment Transportation Economic Environment Human Services Culture and Recreation 0 100 200 300 400 Revenues for governmental activities are shown graphically by type. The largest type of revenue for governmental activities is property taxes followed by interest earnings and fines, fees and charges for services. 8 Management’s Discussion and Analysis FINANCIAL SECTION Page 839 of 5415 Fines, Fees and Charges forFines, Fees and Charges for Services: 78.5%Services: 78.5% Fines, Fees and Charges for Services: 78.5% Operating Grants andOperating Grants and Contributions: 1.8%Contributions: 1.8% Operating Grants and Contributions: 1.8% Capital Grants andCapital Grants and Contributions: 11.5%Contributions: 11.5% Capital Grants and Contributions: 11.5% Interest earnings: 8.1%Interest earnings: 8.1%Interest earnings: 8.1% Other Income: 0.1%Other Income: 0.1%Other Income: 0.1% Program 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. Program Revenues and Expenses Business‐type Activities Fiscal Year 2024 MillionsRevenues Expenses Water and Sewer Solid Waste Emergency Medical Services Airport Authority Mass Transit 0 100 200 300 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 and interest earnings. Total Revenues by Type Business‐type Activities Fiscal Year 2024 9 FINANCIAL SECTION Management’s Discussion and Analysis Page 840 of 5415 Governmental Activities The current year increase in the net position of governmental activities amounted to $253,756,011, an increase of 9.6% when compared to the previous year’s net position. The previous fiscal years’ increase in net position was 10.8%. The current years’ increase is mainly due to the following: • While overall revenues related to governmental activities decreased by 1.8%, or $19,775,104, expenses decreased by 2.5%, or $20,181,045. • Governmental activities revenues decreased primarily due to the sunset of the 1% Infrastructure Sales Tax on December 31, 2023. Collections of the 1% Infrastructure Sales Tax decreased by $90,711,879 when compared to fiscal year 2023. This decrease was partially offset by an increase in interest earnings of $38,196,242 over the prior fiscal year. Interest earnings increased as maturing investments were reinvested at higher rates and unrealized losses previously recognized were recovered during fiscal year 2024. Another mitigating factor was the increase of $12,575,871 in total ad valorem taxes collected in fiscal year 2024, despite levying the roll back rate. The roll back millage rate is that rate which, when applied to the current assessed value, generates the same amount of tax revenue as the previous year. The increase in ad valorem tax revenues was due to the addition of $2.49B in net new construction added to the tax base for fiscal 2024. Tourist taxes also increased $4,528,712, as County tourism continues to expand post Hurricane Ian. • Public safety expenses decreased by $9,047,259 due to a decrease in pension costs, offset by increases in personal services resulting from pay plan increases in the current fiscal year. In addition, physical environment expenses increased $4,252,748, or 8.9%, primarily due to a new waterway debris removal grant related to Hurricane Ian and human services expenses increased $7,702,681, or 29.2%, as a result of increased payments to the Local Provider Participation Fund to provide matching funds for health care facilities in the County. Economic environment expenses decreased $15,468,453, or 35.6%, as grant funding related to the COVID pandemic is coming to an end. Business-type Activities The increase in net position related to business-type activities amounted to $89,947,663 in the aggregate, representing a 7.3% increase over the previous year’s net position. The previous fiscal year’s increase in net position was 5.7%. The current year’s increase is mainly due to the following: • The Collier County Water and Sewer District (District) saw an increase of $75,603,428 in net position. The increase in the District’s net position is largely due to a phased user fee rate increase of 9.5% in January 2024 and an increase of customer accounts of 2.0%. In addition, the District had $40,899,445 of water and sewer capital grants and contributions, the majority of which is related to developer water and wastewater infrastructure contributions. • Solid Waste Disposal experienced an increase of $13,035,940 in net position. This increase is primarily due to a 8.0% rate increase, offset by a $22,775,789 decrease in operating grants and contributions and a $23,765,483 decrease in operating expenses primarily as a result of Hurricane Ian cleanup completion efforts. 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, 2024, Collier County governmental funds reported combined fund balances of $1,486,108,936, an increase of $151,345,087 when compared to prior year combined fund balances. The governmental funds had non-spendable fund balances of $18,187,880 consisting of inventory, prepaid items, notes receivable, endowments and advances to other funds. The restricted fund balance was $1,038,307,505 and consists of monies whose expenditure is externally constrained by grantors, creditors, binding law or enabling legislation. Of the remaining $429,613,551 in fund balance, $64,532,371 is classified as committed, $251,610,950 is recorded as assigned and $113,470,230 is recorded as unassigned. The following were noteworthy activities and changes relating to the major governmental funds for fiscal year 2024: • The General Fund is the primary operating fund of Collier County. At September 30, 2024, total fund balance in the General Fund was $194,643,145, of which $133,338,373 was unassigned. As a percentage of total general fund expenditures and net transfers, the unassigned portion is 25.0%. The total fund balance increased by $31,075,639 or 19.0% compared to the September 30, 2023 total fund balance. The General Fund’s total fund balance increased due to increased Ad Valorem Tax collections of $8,673,304. This increase was due to the addition of a net new construction value of $2.49B 10 Management’s Discussion and Analysis FINANCIAL SECTION Page 841 of 5415 to the ad valorem tax base during fiscal year 2024. There was also a $4.8 million increase in interest revenue as a result of maturing investments being reinvested at higher yields and the continuing recovery of fair value losses recognized in prior years. In addition, transfers in increased $29.6 million as Conservation Collier funds were made available to offset a portion of the impact of the roll back millage rate on fiscal 2024 General Fund revenues. The increases in revenue were offset by a 7.7% increase in current expenditures primarily as a result of an 5.0% increase in salaries as part of the implementation of the County’s comprehensive compensation plan and a 7.0% increase in health insurance premiums. • The Bayshore Gateway Community Redevelopment Agency was created to benefit blighted areas in the Bayshore Gateway Triangle community. During fiscal year 2024, the Bayshore Gateway Community Redevelopment Agency collected $3,584,100 in tax increment revenues, an increase of $235,200 from fiscal year 2023. This increase is due to the increase in taxable property values within the geographic boundary of the agency. In addition, the Agency received $136,800 in charges for services from a redevelopment project and $750,413 in interest earnings. Operating expenditures of $1,510,018, mainly consisting of personal services and planning and consulting services within the district. In addition, capital outlay expenditures of $125,614 were made for bus shelters and road improvements in the district. • The Immokalee Community Redevelopment Agency was created to benefit blighted areas in Immokalee. During fiscal year 2024, the Immokalee Community Redevelopment Agency collected $1,218,400 in tax increment revenues, an increase of $10,600 from the previous fiscal year. This increase is due to the increase in taxable property values within the geographic boundary of the agency. In addition, the Agency received $170,544 in charges for services, and $224,558 in interest earnings. Operating expenditures of $539,986, mainly personal services and general operating expenditures, were associated with the Immokalee Community Redevelopment Agency. In addition, capital outlay expenditures of $92,763 were made for pedestrian safety improvements in the district. • The Grants and Shared Revenue fund was established to account for the revenues received from federal, state and local grants. The Grants and Shared Revenue fund saw a decrease in intergovernmental revenue of $10,213,230 and a decrease in economic environment expenditures of $15,693,705 in fiscal year 2024, primarily as a result of the economic recovery and pandemic grants continuing to wind down. Physical environment expenditures increased $5,297,356 primarily due to a new Emergency Watershed Protection grant in fiscal year 2024. Grant funded capital outlay included $12,946,324 for road improvements, $231,353 for vehicles and equipment, $189,747 for the Golden Gate Senior Center rehabilitation project, $318,505 in vehicles and equipment, $427,808 for new leases and $30,000 in new Subscription Based Information Technology Arrangements (SBITA) . • The Disaster Recovery fund was established to account for the revenues and expenditure associated with the recovery from Hurricanes Ian, Helene and Milton. Current operating expenditures decreased by $10,525,386 as the County expended funds to repair County structures and beach facilities. Capital outlay related to Hurricane Ian included $1,921,007 for Caxambas boat park repairs, $418,592 in other County facility repairs, $868,746 in vehicles and equipment and $170,128 for a new capital lease for the Tax Collector. Insurance proceeds of $8,114,508 and $2,311,780 in reimbursements from the Federal Emergency Management Agency have been recognized during the fiscal year. • 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 sunset on December 31, 2023. Fiscal year 2024 collections were $33,851,124, a decrease of $90,711,879 over the previous fiscal year. The Infrastructure Sales Tax Fund had interest earnings of $20,541,549 and capital outlay totaled $54,402,531. Capital outlay included $33,157,990 for road and bridge projects, $13,146,075 for the new chiller plant, $1,911,217 for the new Emergency Medical Services station in Golden Gate Estates, $1,768,403 for the Sheriff’s Forensics Building and other jail improvements, $1,402,306 for the Domestic Animal Services Facility, $1,176,897 for the new mental health facility, $1,058,577 for hurricane resiliency projects, $676,891 for the Emergency Operations Center garage enclosure, $87,115 for the Career and Technical Training Center and $17,060 for building automation improvements. 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, 2024, total net position amounted to $1,324,042,832 for enterprise funds, as compared to $1,230,982,512, as of September 30, 2023, an increase of $93,060,320. Net position changes as a result of operations, non-operating revenues and expenses, capital contributions and grants and donations. For fiscal year 2024, 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, 2024, the Collier County Water and Sewer District (District) reported capital grants and contributions of $40,899,445, which consists of water and sewer impact fees of $17,349,184, $23,188,872 in developer infrastructure contributions and other capital contributions of $361,389. 11 FINANCIAL SECTION Management’s Discussion and Analysis Page 842 of 5415 Emergency Medical Services reported charges for services of $19,112,673 in 2024. Personal services expenses increased from $34,156,907 in fiscal year 2023 to $38,462,846 in fiscal year 2024 due to an increase in the pay plan along with an increase in pension costs. For fiscal year 2024, Emergency Medical Services relied on a $29,392,300 transfer from the General Fund to supplement the user charges to provide emergency medical services to the County. Net Operating Income/(Loss) 2024 2023 County Water and Sewer $ 32,170,654 $ 16,195,193 Solid Waste Disposal 10,034,730 (20,077,675) Emergency Medical Services (29,857,398) (27,961,508) Non-major enterprise funds (17,418,327) (18,057,376) Total $ (5,070,341) $ (49,901,366) The Collier County Water and Sewer District’s net operating income increased by $15,975,461, or 98.6%, when compared to fiscal year 2023. The increase in net operating income was primarily the result of a 9.5% rate increase effective January 1, 2024 and an increase in customer accounts of 2.0% offset by a 7.05% increase in total operating expenses, including depreciation and amortization. General and Administrative expenses increased by $13,722,538 or 19%, mainly due to the consumption of prior year inventory, maintenance and repair expenses of $13,045,939 and increases in property insurance of $1,324,000. County Water and Sewer payments in lieu of taxes paid to the General Fund of $10,613,800 were reclassified from operating expense to transfers out 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 increased by $30,112,405, or 150.0%, when compared to fiscal year 2023. The increase in net operating income was primarily the result of a 8.0% increase in tipping rate offset by a 27.98% decrease in total operating expenses, including depreciation and amortization. This decrease is due to the completion of county-wide debris removal efforts after Hurricane Ian in fiscal year 2023. The Solid Waste Disposal payments in lieu of taxes paid to the General Fund of $485,300 were reclassified from operating expense to transfers out 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 increased by $1,895,890, or 6.8%, when compared to fiscal year 2023. The increase in net operating loss was mainly brought by the increase in personal services related to a pay plan adjustment and an increase in the allocated pension plan expense of $542,415. 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 $3,159,879,037, 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 $122,158,229, when compared to the previous year. There was an increase in the governmental activities capital assets of $75,818,895, or 3.9% while the business-type activities capital assets increased by $46,339,334, or 4.2%. The major capital asset activities during the current and previous fiscal years are as follows: • Capitalization from construction in process of $85,910,867 in governmental activity costs including $33,815,829 for various bridge projects, $12,291,381 related to the construction Veterans Memorial Boulevard, and $9,210,258 for Big Island Corkscrew Regional Park. The remaining $30,593,399 is related to $8,454,922 in other transportation projects, $8,080,416 in stormwater projects, $7,500,041 for public safety projects and $6,558,020 in other capital projects. • The business-type activities capitalized $31,042,066 of construction in process during fiscal year 2024 including $10,607,828 for Naples Park basin water and waste water improvements, $5,162,661 for Golden Gate City transmission water main improvements, $5,157,478 for the new South County Regional Water Treatment reactor tank, $4,072,630 in various County Water and Sewer infrastructure improvements, $1,969,831 in other water and sewer projects, $1,695,132 for Airport fuel service improvements, $1,527,712 for the Mass Transit computer aided dispatch and automated vehicle location system and $520,120 for new bus shelters. The remaining $328,674 was for $315,484 in various Solid Waste projects and $13,190 for miscellaneous Airport projects. • Developer donated water and wastewater infrastructure in fiscal year 2024 amounted to $23,188,872 and $24,726,809 in fiscal year 2023. 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. 12 Management’s Discussion and Analysis FINANCIAL SECTION Page 843 of 5415 • Collier County acquired $18,168,757 of land and non-depreciable assets in fiscal year 2024, compared to $14,761,006 for fiscal year 2023. Fiscal year 2024 land acquisitions consisted primarily of $9,930,589 for Conservation Collier, $885,692 for stormwater, $2,333,056 for Wilson Boulevard widening, $1,658,660 for a parking lot, $1,495,368 in donated land for the Amateur Sports Complex, $1,739,153 related to various road projects and $126,239 for miscellaneous County Water and Sewer projects. Additional information regarding Collier County’s capital assets can be found in Note 6 beginning on page 57 of this report. Debt Administration At September 30, 2024, Collier County had total bonded debt, notes, loans, leases and subscription based information technology arrangements of $677,113,277, a decrease of $36,574,026 from the previous year. The following table illustrates the balances of all bonds, notes, loans, leases and subscription based information technology obligations for the fiscal years ended September 30, 2024 and 2023: Outstanding Debt 2024 2023 Revenue Bonds, net $ 394,593,028 $ 403,204,521 Direct Placement Loans Payable, net 227,661,794 257,983,264 Commercial Paper and Notes Payable 31,826,848 37,004,848 Leases 7,420,630 7,335,790 Subscription Based Information Technology Arrangements 15,610,977 8,158,880 Total outstanding debt $ 677,113,277 $ 713,687,303 Collier County’s Series 2020A and 2020B Special Obligation Revenue Bonds carry ratings of Aaa and AAA by Moody’s and Standard and Poor’s, respectively. The Series 2017, 2019, 2022A and 2022B Special Obligation Refunding Revenue Notes (Bank Term Loans) were issued as direct placements with commercial banks and therefore carry an implied rating of Aaa and AAA by Moody’s and Standard and Poor’s, respectively. The Series 2014 Gas Tax Refunding Revenue Bond (Bank Term Loan) was issued as a direct placement with a commercial bank. Collier County’s Tourist Development Tax Revenue Bonds carry ratings of Aa1 and AA+ by Moody’s and Fitch Ratings, Inc., respectively. Collier County’s Senior Lien Water and Sewer Revenue Bonds carry ratings of Aaa and AAA, respectively, by Moody’s and Fitch Ratings, Inc. The Series 2018 and 2023 County Water and Sewer Revenue Bonds were issued as direct placements with commercial banks and, as such, carry implied ratings of Aaa and AAA by Moody’s and Fitch Ratings, Inc., respectively. 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 58 of this report. General Fund Budgetary Highlights During the 2024 fiscal year, the General Fund expenditure appropriations increased by $5,203,287. Significant variances between the original budget and the final, amended budget are listed below: • $559,400 decrease in the Other General Administration operating to provide additional funding to other General Fund departments primarily due to increases in utility costs. • $1,744,000 increase in Sheriff charges for services revenue and personal services for salaries for special services. • $408,821 increase in Stormwater Management operating due to re-budgeting of lapsed appropriations from the previous fiscal year. • $500,000 increase in Domestic Animal Services as a result of an unanticipated increase in operating expenditures. • $409,461 increase in County Attorney operating due to re-budgeting of lapsed appropriations from the previous fiscal year. • $690,000 decrease in Facilities Management personal services and related $913,750 increase to Facilities Management operating as funds were needed to hire temporary labor as a result of vacant positions. Significant variances between actual results and final budget amounts in the General Fund occurred during fiscal year 2024. Tax revenues were under budget by $18,734,088 primarily due to the early payment discount allowed for property taxes. The discount ranges from a maximum of 4.0% to 1.0%, depending on the date of payment. Other general administrative operating was under budget $3,679,431 due to anticipated projects being put on hold as County Management evaluates priorities for the current fiscal year. The Tax Collector was $1,453,233 under budget in personal services as a result of many vacancies during the fiscal year. Sheriff personal services was also $4,347,720 under budget and capital 13 FINANCIAL SECTION Management’s Discussion and Analysis Page 844 of 5415 outlay was $3,279,773 over budget for the 2024 fiscal year. The Sheriff was under budget in personal services due to many vacant positions during the year and was over budget in capital outlay as a result of purchasing additional vehicles, radios and computer equipment. Stormwater Management operating was $1,058,758 under budget as scheduled maintenance continues to be delayed due to Hurricane Ian. Library administration personal services was $1,252,916 under budget due to staffing shortages. Parks Operations operating under budget $1,001,742 in large part due to water facilities being closed for repairs. Economic Factors and Year 2025 Budgets and Rates The following factors were taken into account in preparing the fiscal year 2025 budget: •A 1.5% increase in countywide net new taxable property value. •Rolled back General Fund tax rate. •A 3% cost of living adjustment along with an additional 1.5% to implement a merit-based incentive program and 0.5% pay plan adjustment for targeted job classifications. •Continued emphasis on capital facility repair and replacement. •A 7% increase to the health insurance premiums and continued cost sharing of 80% employer and 20% employee across all agencies (excluding Sheriff). During fiscal year 2024, the General Fund unassigned fund balance increased by $4,328,534 to $133,338,373. $44,241,100 of the fiscal year 2024 unassigned fund balance has been appropriated in the 2025 budget to support fiscal year 2025 operations. 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.collierclerk.com. 14 Management’s Discussion and Analysis FINANCIAL SECTION Page 845 of 5415 BASIC FINANCIAL STATEMENTS Page 846 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION September 30, 2024 Primary Government Governmental Business-type Component Activities Activities Total Units ASSETS Current assets: Cash and investments $ 568,743,568 $ 396,591,622 $ 965,335,190 $ 570,494 Trade receivables, net 2,313,540 25,391,758 27,705,298 - Special assessments receivable 1,405 37,528 38,933 - Interest receivable 2,043,957 1,912,103 3,956,060 - Due from other governments 21,760,861 4,962,415 26,723,276 - Leases receivable 320,542 242,969 563,511 - Internal balances 5,457,658 (5,539,135) (81,477) - Deposits 20,118 1,144,601 1,164,719 - Inventory 2,131,313 11,100,873 13,232,186 - Prepaid costs 7,660,034 249,239 7,909,273 - Restricted assets: Cash and investments 50,409,027 17,681,170 68,090,197 - Trade receivables, net 6,823,913 - 6,823,913 - Leases receivable 601 - 601 - Notes receivable 31,572 - 31,572 - Interest receivable 3,978,012 122,830 4,100,842 - Due from other governments 22,091,287 3,906,340 25,997,627 - Deposits 1,875 - 1,875 - Inventory 1,575,699 - 1,575,699 - Inventory for resale 3,838,014 - 3,838,014 - Prepaid costs 122,670 - 122,670 - Total current assets 699,325,666 457,804,313 1,157,129,979 570,494 Noncurrent assets: Restricted assets: Cash and investments 990,214,177 60,179,349 1,050,393,526 - Cash with fiscal agent 31,207,448 101,037,931 132,245,379 - Leases receivable 17,335 - 17,335 - Notes receivable 94,714 - 94,714 - Impact fee receivable 9,111,843 - 9,111,843 - Leases receivable 6,490,774 3,347,067 9,837,841 - Notes receivable 1,483,909 - 1,483,909 - Capital assets: Land and non-depreciable capital assets 852,079,951 248,394,369 1,100,474,320 - Depreciable capital assets, net 1,162,394,231 897,010,486 2,059,404,717 - Total noncurrent assets 3,053,094,382 1,309,969,202 4,363,063,584 - Total assets 3,752,420,048 1,767,773,515 5,520,193,563 570,494 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to debt 3,016,155 1,210,435 4,226,590 - Deferred outflows of resources related to OPEB 27,741,561 789,454 28,531,015 - Deferred outflows of resources related to pensions 93,938,149 20,843,594 114,781,743 - Total deferred outflows of resources $ 124,695,865 $ 22,843,483 $ 147,539,348 $ - The notes to the financial statements are an integral part of this statement. 1616 Basic Financial Statements FINANCIAL SECTION Page 847 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION (continued) September 30, 2024 Primary Government Governmental Business-type Component Activities Activities Total Units LIABILITIES Current liabilities: Accounts payable $ 23,307,457 $ 17,987,778 $ 41,295,235 $ - Wages payable 11,932,883 4,684,020 16,616,903 - Retainage payable 481,637 2,742,749 3,224,386 - Due to other governments 8,319,820 148,877 8,468,697 - Self-insurance claims payable 13,334,434 - 13,334,434 - Compensated absences 15,211,582 3,655,187 18,866,769 - Unearned revenue 174,374 50,280 224,654 - Total OPEB Liability 2,850,360 207,281 3,057,641 - Net pension liability 464,938 102,174 567,112 - Landfill post-closure liability - 43,901 43,901 - Leases payable 1,015,629 74,131 1,089,760 - SBITA liability 4,480,326 62,246 4,542,572 - Bonds, loans and notes payable 31,356,000 10,311,751 41,667,751 - Liabilities payable from restricted assets: Accounts payable 22,267,510 10,725,747 32,993,257 - Wages payable 3,038,060 29,405 3,067,465 - Retainage payable 8,777,098 1,356,237 10,133,335 - Refundable deposits 5,192,484 257,084 5,449,568 - Interest payable 4,477,344 2,715,597 7,192,941 - Due to other governments 3,900,205 137,322 4,037,527 - Unearned revenue 24,472,456 127,472 24,599,928 - Bonds, loans and notes payable - 3,507,097 3,507,097 - Total current liabilities 185,054,597 58,926,336 243,980,933 - Noncurrent liabilities: Self-insurance claims payable 2,324,900 - 2,324,900 - Compensated absences 28,652,787 913,796 29,566,583 - Leases payable 5,766,674 564,196 6,330,870 - SBITA liability 10,749,790 318,615 11,068,405 - Landfill post-closure liability - 1,460,380 1,460,380 - Total OPEB liability 52,671,488 3,247,596 55,919,084 - Net pension liability 354,127,479 78,112,111 432,239,590 - Bonds, loans and notes payable, net 298,743,241 310,163,581 608,906,822 - Arbitrage rebate - 3,383,669 3,383,669 - Total noncurrent liabilities 753,036,359 398,163,944 1,151,200,303 - Total liabilities 938,090,956 457,090,280 1,395,181,236 - DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 6,047,377 3,408,957 9,456,334 - Deferred inflows of resources related to OPEB 5,501,548 313,320 5,814,868 - Deferred inflows of resources related to pensions 36,708,719 8,247,295 44,956,014 - Deferred inflows of resources related to debt - 5,827,473 5,827,473 - Total deferred inflows of resources 48,257,644 17,797,045 66,054,689 - NET POSITION Net investment in capital assets 1,671,210,544 912,382,037 2,583,592,581 - Restricted for: Growth related capital expansion 238,996,162 23,277,035 262,273,197 - Transportation capital projects 79,670,219 - 79,670,219 - Community development 32,793,670 - 32,793,670 - Tourist development 163,932,758 - 163,932,758 - Conservation Collier 66,478,819 - 66,478,819 - Community redevelopment 21,330,989 - 21,330,989 - Infrastructure sales tax capital projects 352,859,803 - 352,859,803 - Grants 39,030,819 3,631,637 42,662,456 - Debt service 1,461,586 22,489,886 23,951,472 - Court programs 20,480,608 - 20,480,608 - Public safety 8,472,796 - 8,472,796 - Nonexpendable purposes - other 5,522,800 - 5,522,800 - Special revenues - other 9,020,722 - 9,020,722 - Renewal and replacement - 300,000 300,000 - Unrestricted 179,505,018 353,649,078 533,154,096 570,494 Total net position $ 2,890,767,313 $ 1,315,729,673 $ 4,206,496,986 $ 570,494 1717 FINANCIAL SECTION Basic Financial Statements Page 848 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES For the Fiscal Year Ended September 30, 2024 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and FUNCTIONS/PROGRAMS Expenses Services Contributions Contributions Primary Government: Governmental Activities: General government $ 175,663,196 $ 46,429,692 $ 11,740,782 $ 3,567,921 Public safety 320,976,459 26,298,941 5,579,529 4,772,817 Physical environment 52,181,840 877,570 15,696,003 1,999,094 Transportation 97,304,086 1,775,848 12,522,968 30,822,483 Economic environment 27,931,350 380,851 21,568,139 - Human services 34,098,355 608,421 14,066,071 58,155 Culture and recreation 83,128,521 11,335,567 1,257,754 20,063,143 Interest and fiscal charges 10,387,434 - - - Total governmental activities 801,671,241 87,706,890 82,431,246 61,283,613 Business-type Activities: Water and sewer 203,338,498 221,031,138 1,095 40,543,137 Solid waste 61,694,553 71,201,182 628,425 1,119 Emergency medical services 49,100,394 19,172,007 2,835,536 - Airport authority 11,479,569 10,182,373 - 2,067,191 Mass transit 17,766,923 1,267,547 3,893,034 4,759,169 Total business-type activities 343,379,937 322,854,247 7,358,090 47,370,616 Total primary government $ 1,145,051,178 $ 410,561,137 $ 89,789,336 $ 108,654,229 Component Units: Industrial Development Authority $ 7,695 $ - $ 152,580 $ - Health Facilities Authority 6,175 - - - Housing Finance Authority 53,590 - - - Educational Facilities Authority 6,175 - - - Total component units $ 73,635 $ - $ 152,580 $ - General revenues: Property taxes Gas taxes Sales tax Tourist taxes Communications services tax Infrastructure sales tax State revenue sharing Other taxes Interest earnings Miscellaneous Transfers, net Total general revenues and transfers Change in net position Net position - beginning Net position - ending The notes to the financial statements are an integral part of this statement. 1818 Basic Financial Statements FINANCIAL SECTION Page 849 of 5415 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business-type Component Activities Activities Total Units $ (113,924,801) $ - $ (113,924,801) $ - (284,325,172) - (284,325,172) - (33,609,173) - (33,609,173) - (52,182,787) - (52,182,787) - (5,982,360) - (5,982,360) - (19,365,708) - (19,365,708) - (50,472,057) - (50,472,057) - (10,387,434) - (10,387,434) - (570,249,492) - (570,249,492) - - 58,236,872 58,236,872 - - 10,136,173 10,136,173 - - (27,092,851) (27,092,851) - - 769,995 769,995 - - (7,847,173) (7,847,173) - - 34,203,016 34,203,016 - $ (570,249,492) $ 34,203,016 $ (536,046,476) - $ 144,885 (6,175) (53,590) (6,175) $ 78,945 $ 531,452,406 $ - $ 531,452,406 $ - 25,807,582 - 25,807,582 - 64,862,410 - 64,862,410 - 48,636,665 - 48,636,665 - 4,048,405 - 4,048,405 - 33,851,124 - 33,851,124 - 18,251,220 - 18,251,220 - 2,645,151 - 2,645,151 - 100,306,679 33,600,575 133,907,254 7,473 16,119,404 168,529 16,287,933 - (21,975,543) 21,975,543 - - 824,005,503 55,744,647 879,750,150 7,473 253,756,011 89,947,663 343,703,674 86,418 2,637,011,302 1,225,782,010 3,862,793,312 484,076 $ 2,890,767,313 $ 1,315,729,673 $ 4,206,496,986 $ 570,494 1919 FINANCIAL SECTION Basic Financial Statements Page 850 of 5415 COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2024 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Disaster Infrastructure Governmental Governmental Fund Agency Agency Revenue Recovery Sales Tax Funds Funds ASSETS Cash and investments $ 201,491,319 $ 13,503,240 $ 4,208,563 $ 42,528,514 $ 9,895,129 $ 320,339,264 $ 913,131,852 $ 1,505,097,881 Cash with fiscal agent - - - - - 31,207,448 - 31,207,448 Receivables: Interest 581,709 50,469 15,076 153,383 76,522 1,326,405 3,419,312 5,622,876 Trade, net 493,977 - - 4,805,609 - - 2,137,490 7,437,076 Notes 1,483,909 - - - - - 126,286 1,610,195 Impact fee - - - - - - 9,111,843 9,111,843 Special assessments - - - - - - 1,405 1,405 Leases 317,209 - - - - - 6,512,043 6,829,252 Due from other funds 586,970 - - 758,985 - 6,743 7,235,411 8,588,109 Due from other governments 14,550,997 13,355 19 7,583,486 2,815,521 - 18,633,843 43,597,221 Deposits 20,118 - 625 - - - 1,250 21,993 Inventory for resale - 3,694,000 - - - - 144,014 3,838,014 Inventory 1,175,502 - - - - - 1,813,140 2,988,642 Advances to other funds 7,768,100 - - - - - 36,783,772 44,551,872 Prepaid costs 301,759 - - 7,969 - - 114,701 424,429 Total assets $ 228,771,569 $ 17,261,064 $ 4,224,283 $ 55,837,946 $ 12,787,172 $ 352,879,860 $ 999,166,362 $ 1,670,928,256 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable $ 12,655,639 $ 99,412 $ 16,231 $ 5,049,619 $ 3,735,118 $ 3,702,682 $ 18,175,687 $ 43,434,388 Wages payable 10,028,112 24,301 14,340 199,981 - - 4,099,047 14,365,781 Due to other funds 3,915,997 - 30,794 3,188,700 - 2,518 1,444,285 8,582,294 Due to other governments 6,424,507 - - 196,133 712,019 - 4,822,051 12,154,710 Unearned revenues 3,361 - - 24,472,456 - - 3,625 24,479,442 Refundable deposits 816,386 - - - - - 4,376,098 5,192,484 Retainage payable - - - 804,289 200,370 5,703,781 2,550,295 9,258,735 Advances from other funds - - - - 22,790,100 - 24,551,872 47,341,972 Total liabilities 33,844,002 123,713 61,365 33,911,178 27,437,607 9,408,981 60,022,960 164,809,806 Deferred inflows of resources: Unavailable revenue - - - 4,850,294 - - 9,111,843 13,962,137 Related to leases 284,422 - - - - - 5,762,955 6,047,377 Total deferred inflows of resources 284,422 - - 4,850,294 - - 14,874,798 20,009,514 Fund balances: Nonspendable 10,729,270 - - 7,969 - - 7,450,641 18,187,880 Restricted 553,414 17,137,351 4,162,918 17,068,505 - 343,470,879 655,914,438 1,038,307,505 Committed - - - - - - 64,532,371 64,532,371 Assigned 50,022,088 - - - - - 201,588,862 251,610,950 Unassigned 133,338,373 - - - (14,650,435) - (5,217,708) 113,470,230 Total fund balances 194,643,145 17,137,351 4,162,918 17,076,474 (14,650,435) 343,470,879 924,268,604 1,486,108,936 Total liabilities, deferred inflows of resources and fund balances $ 228,771,569 $ 17,261,064 $ 4,224,283 $ 55,837,946 $ 12,787,172 $ 352,879,860 $ 999,166,362 $ 1,670,928,256 The notes to the financial statements are an integral part of this statement. 2020 Basic Financial Statements FINANCIAL SECTION Page 851 of 5415 COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION September 30, 2024 Differences in amounts reported for governmental activities in the statement of net position on pages 16-17: Fund balances - total governmental funds $ 1,486,108,936 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 $ 638,405,162 Construction in progress 213,474,750 Depreciable assets, net of $1,450,831,399 in accumulated depreciation 1,137,707,416 1,989,587,328 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. 13,962,137 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, 2024 are: Accrued interest on bonds, loans and notes payable $ (4,477,344) Bonds, loans and notes payable (313,888,000) Lease obligations (6,782,023) SBITA obligations (11,629,748) Compensated absences (43,139,754) Total OPEB liability (55,068,749) Pension liability (346,588,731) Unamortized premiums 156,206 Unamortized discount (16,367,447) (797,785,590) Unamortized deferred charges on refunding 3,016,155 OPEB related deferred outflows 27,638,027 Pension related deferred outflows 91,926,866 OPEB related deferred inflows (5,460,457) Pension related deferred inflows (35,829,285) 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, including the cululative adjustments related to Enterprise funds, of the internal service funds are included in governmental activities in the statement of net position. Internal service fund net position at September 30, 2024 is: 117,603,196 Total net position - governmental activities $ 2,890,767,313 The notes to the financial statements are an integral part of this statement. 2121 FINANCIAL SECTION Basic Financial Statements Page 852 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For the Fiscal Year Ended September 30, 2024 Bayshore Gateway Immokalee Community Community Grants and Other Total General Redevelopment Redevelopment Shared Disaster Infrastructure Governmental Governmental Fund Agency Agency Revenue Recovery Sales Tax Funds Funds Revenues: Taxes $ 419,067,112 $ 3,584,100 $ 1,218,400 $ - $ - $ 33,851,124 $ 179,644,107 $ 637,364,843 Licenses, permits and impact fees 269,506 - - - - - 75,364,450 75,633,956 Intergovernmental 93,988,869 - - 36,928,679 2,311,780 - 26,792,150 160,021,478 Charges for services 23,343,019 136,800 170,544 487,471 - - 23,818,623 47,956,457 Fines and forfeitures 501,979 - - - - - 1,866,083 2,368,062 Interest earnings 14,704,680 750,413 224,558 3,017,666 1,198,802 20,541,549 53,377,861 93,815,529 Special assessments - - - - - - 17,560,617 17,560,617 Miscellaneous 1,726,444 3,000 - 822,195 250,000 - 3,179,318 5,980,957 Total revenues 553,601,609 4,474,313 1,613,502 41,256,011 3,760,582 54,392,673 381,603,209 1,040,701,899 Expenditures: Current: General government 104,502,935 - - 1,557,818 2,015,020 - 37,956,667 146,032,440 Public safety 245,212,436 - - 2,482,779 1,116,484 - 39,580,806 288,392,505 Physical environment 9,257,195 - - 6,199,832 8,958,049 - 19,067,858 43,482,934 Transportation 531,738 - - 132,637 73,737 - 59,385,989 60,124,101 Economic environment 1,675,284 1,510,018 539,986 17,005,037 - - 6,640,877 27,371,202 Human services 16,090,819 - - 4,562,139 - - 13,117,682 33,770,640 Culture and recreation 23,594,745 - - 266,702 1,502,375 - 40,567,628 65,931,450 Debt service Principal 2,684,300 - - 99,222 69,905 - 31,619,837 34,473,264 Interest 442,774 - - 18,855 5,739 - 10,490,203 10,957,571 Fiscal charges - - - - - - 9,250 9,250 Capital outlay 19,610,725 125,614 92,763 14,143,737 3,378,473 54,402,531 78,401,699 170,155,542 Total expenditures 423,602,951 1,635,632 632,749 46,468,758 17,119,782 54,402,531 336,838,496 880,700,899 Excess (deficit) of revenues over (under) expenditures 129,998,658 2,838,681 980,753 (5,212,747) (13,359,200) (9,858) 44,764,713 160,001,000 Other financing sources (uses): Loans issued - - - - - - 3,000,000 3,000,000 Leases 749,281 - - 427,808 170,128 - - 1,347,217 SBITAs 7,593,744 - - - - - 581,094 8,174,838 Sale of capital assets 544,767 - 115 483 - - 163,630 708,995 Insurance proceeds 1,022,961 - - - 8,114,508 - 472,024 9,609,493 Transfers in 51,267,587 - - 7,714,666 2,000,000 - 181,700,273 242,682,526 Transfers out (160,101,359) - - - - (1,551,966) (112,525,657) (274,178,982) Total other financing sources (uses) (98,923,019) - 115 8,142,957 10,284,636 (1,551,966) 73,391,364 (8,655,913) Net change in fund balances 31,075,639 2,838,681 980,868 2,930,210 (3,074,564) (1,561,824) 118,156,077 151,345,087 Fund balances at beginning of year 163,567,506 14,298,670 3,182,050 14,146,264 (11,575,871) 345,032,703 806,112,527 1,334,763,849 Fund balances at end of year $ 194,643,145 $ 17,137,351 $ 4,162,918 $ 17,076,474 $ (14,650,435) $ 343,470,879 $ 924,268,604 $ 1,486,108,936 The notes to the financial statements are an integral part of this statement. 2222 Basic Financial Statements FINANCIAL SECTION Page 853 of 5415 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, 2024 Differences in amounts reported for governmental activities in the statement of activities on pages 18-19: Net change in fund balances - total governmental funds $ 151,345,087 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 $ 170,155,542 Depreciation and amortization expense (104,140,160) 66,015,382 Donations of capital assets are not financial resources to governmental funds, but receiving donated assets increases net position in the statement of net position. 9,885,918 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 capital assets disposed. (2,049,393) Certain revenues not considered available are not recognized in the governmental funds but are included in the statement of activities. 469,955 Capital assets transferred to and from proprietary funds are not recorded in the governmental funds as there is no flow of current financial resources. (356,308) Debt proceeds provide current financial resources for governmental 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. Loan proceeds $ (3,000,000) Bond, loan and note principal payments 30,741,000 Lease proceeds (1,347,217) SBITA proceeds (8,174,838) Payments on lease obligations 1,059,802 Payments on SBITA obligations 2,672,462 21,951,209 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 $ (4,149,062) OPEB expense (2,383,915) Pension expense 1,575,857 Accrued interest on bonds, loans and notes payable 284,327 Amortization of deferred charges on refunding (460,043) Amortization of premiums and discounts, net 897,323 (4,235,513) The net revenues of internal service funds, including the consolidating adjustment related to Enterprise funds, are reported with governmental activities. 10,729,674 Change in net position - governmental activities $ 253,756,011 The notes to the financial statements are an integral part of this statement. 2323 FINANCIAL SECTION Basic Financial Statements Page 854 of 5415 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, 2024 Original Final Budget Budget Actual Variance Revenues: Taxes $ 437,801,200 $ 437,801,200 $ 419,067,112 $ (18,734,088) Licenses, permits and impact fees 331,500 331,500 269,506 (61,994) Intergovernmental 65,805,000 65,805,000 93,988,869 28,183,869 Charges for services 26,675,960 28,786,271 23,343,019 (5,443,252) Fines and forfeitures 399,800 399,800 501,979 102,179 Interest earnings 971,700 1,416,700 9,764,365 8,347,665 Miscellaneous 9,378,400 9,434,466 10,507,244 1,072,778 Total revenues 541,363,560 543,974,937 557,442,094 13,467,157 Expenditures: Current: General government Board of County Commissioners personal services 1,447,200 1,465,600 1,458,814 6,786 Board of County Commissioners operating 49,100 159,100 109,608 49,492 County manager administrative personal services 1,931,000 2,241,000 2,193,048 47,952 County manager administrative operating 108,000 140,000 95,667 44,333 Corporate planning and improvement personal services 820,400 820,400 677,988 142,412 Corporate planning and improvement operating 70,400 70,400 58,739 11,661 Budget and management personal services 1,100,200 1,075,200 1,056,160 19,040 Budget and management operating 72,400 87,400 50,805 36,595 Administrative services personal services 3,700,800 3,535,300 3,167,585 367,715 Administrative services operating 452,200 669,092 335,001 334,091 Administrative services capital outlay 15,000 - - - Human resources administration personal services 2,187,300 2,187,300 2,041,097 146,203 Human resources administration operating 678,000 716,090 389,050 327,040 Clerk of the Circuit Court personal services 13,552,900 13,838,000 13,799,507 38,493 Clerk of the Circuit Court operating 3,773,900 4,055,600 3,551,049 504,551 Clerk of the Circuit Court capital outlay 96,800 285,000 281,473 3,527 Property Appraiser personal services 8,790,283 8,806,814 7,685,808 1,121,006 Property Appraiser operating 2,608,377 2,608,377 2,551,930 56,447 Property Appraiser capital outlay 30,000 30,000 108,554 (78,554) Tax Collector personal services 17,074,114 17,074,114 15,620,881 1,453,233 Tax Collector operating 5,378,097 5,402,073 4,540,909 861,164 Tax Collector capital outlay 676,865 856,865 154,590 702,275 County attorney personal services 3,059,000 3,059,000 2,829,429 229,571 County attorney operating 340,700 750,161 151,232 598,929 County attorney capital outlay 10,000 6,000 - 6,000 Circuit court operating 40,000 40,000 22,970 17,030 County court operating 29,700 29,700 20,473 9,227 State Attorney operating 789,600 789,600 682,625 106,975 Public Defender operating 486,800 496,800 493,219 3,581 Other general administrative personal services 200,000 160,000 11,334 148,666 Other general administrative operating 16,785,400 16,226,000 12,546,569 3,679,431 Facilities management personal services 10,400,700 9,710,700 9,340,850 369,850 Facilities management operating 9,785,900 10,699,650 10,655,486 44,164 Facilities management capital outlay 65,000 268,167 171,608 96,559 Sheriff personal services 5,914,800 5,914,800 5,864,603 50,197 Sheriff operating 181,800 181,800 96,086 85,714 2424 Basic Financial Statements FINANCIAL SECTION Page 855 of 5415 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, 2024 Original Final Budget Budget Actual Variance Supervisor of Elections personal services $ 3,515,300 $ 3,315,300 $ 3,160,518 $ 154,782 Supervisor of Elections operating 2,561,200 2,735,200 2,660,744 74,456 Supervisor of Elections capital outlay 30,000 50,000 54,000 (4,000) Public services operations personal services 2,475,300 2,240,400 2,028,724 211,676 Public services operations operating 264,000 314,000 251,361 62,639 Community planning and resiliency personal services 826,200 852,200 846,196 6,004 Community planning and resiliency operating 470,500 390,200 109,259 280,941 Community planning and resiliency capital outlay - 10,300 10,290 10 Real property management personal services 871,300 871,300 848,737 22,563 Real property management operating 137,700 137,700 73,229 64,471 Total general government 123,854,236 125,372,703 112,857,805 12,514,898 Public safety Sheriff personal services 197,343,800 199,087,800 194,740,080 4,347,720 Sheriff operating 45,544,200 45,921,200 45,740,014 181,186 Sheriff capital outlay 6,037,300 6,037,300 9,317,073 (3,279,773) Emergency management administration personal services 1,551,800 1,551,800 1,401,835 149,965 Emergency management administration operating 1,317,950 1,307,065 1,116,628 190,437 Helicopter operations operating 52,150 52,150 51,966 184 Medical examiner services operating 2,163,800 2,163,800 2,161,913 1,887 Total public safety 254,011,000 256,121,115 254,529,509 1,591,606 Physical environment Stormwater management personal services 3,532,600 3,552,600 2,927,066 625,534 Stormwater management operating 6,093,000 6,501,821 5,443,063 1,058,758 Stormwater management capital outlay - 144,875 129,986 14,889 Conservation and resource management personal services 833,800 833,800 695,398 138,402 Conservation and resource management operating 157,900 157,900 152,943 4,957 Immokalee cemetery operating 22,500 42,500 37,325 5,175 Total physical environment 10,639,800 11,233,496 9,385,781 1,847,715 Transportation Alternative transportation modes personal services 605,100 605,100 507,155 97,945 Alternative transportation modes operating 26,000 26,000 24,583 1,417 Total transportation 631,100 631,100 531,738 99,362 Economic environment Veterans services personal services 406,000 406,000 322,865 83,135 Veterans services operating 45,900 45,900 32,010 13,890 Economic development personal services 584,800 642,126 629,211 12,915 Economic development operating 1,177,900 1,507,726 691,198 816,528 Total economic environment 2,214,600 2,601,752 1,675,284 926,468 Human services Health Care Responsibility Act operating 48,200 48,200 - 48,200 Domestic animal services personal services 3,485,800 3,335,800 3,320,474 15,326 Domestic animal services operating 1,665,500 2,165,500 2,045,814 119,686 Health department operating 1,896,200 1,896,200 1,828,980 67,220 Mental health personal operating 2,505,200 2,505,200 2,505,200 - Client assistance personal services 1,677,700 1,677,700 1,567,222 110,478 Client assistance operating 4,631,200 4,667,157 4,439,172 227,985 Public services division office personal services 265,300 350,200 343,106 7,094 Public services division office operating 43,400 43,400 22,903 20,497 Total human services 16,218,500 16,689,357 16,072,871 616,486 (continued) 2525 FINANCIAL SECTION Basic Financial Statements Page 856 of 5415 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, 2024 Original Final Budget Budget Actual Variance Culture and recreation Library administration personal services $ 7,396,800 $ 7,246,800 $ 5,993,884 $ 1,252,916 Library administration operating 2,440,000 2,361,200 1,867,947 493,253 Parks operations personal services 5,660,918 5,670,918 5,241,458 429,460 Parks operations operating 5,410,800 5,314,745 4,313,003 1,001,742 Parks operations capital outlay 200 51,055 35,400 15,655 Parks maintenance personal service 3,192,682 3,257,682 3,206,960 50,722 Parks maintenance operating 3,505,800 3,509,679 3,081,444 428,235 Parks maintenance capital outlay 17,200 13,321 13,321 - Total culture and recreation 27,624,400 27,425,400 23,753,417 3,671,983 Debt service - 322,000 3,127,074 (2,805,074) Total expenditures 435,193,636 440,396,923 421,933,479 18,463,444 Excess of revenues over expenditures 106,169,924 103,578,014 135,508,615 31,930,601 Other financing sources (uses): Sale of capital assets 15,000 15,600 544,767 529,167 Insurance proceeds - - 1,022,961 1,022,961 Transfers in 60,901,500 61,011,720 54,113,587 (6,898,133) Transfers out (190,425,024) (191,378,891) (168,447,359) 22,931,532 Total other financing sources (uses) (129,508,524) (130,351,571) (112,766,044) 17,585,527 Net change in fund balance (23,338,600) (26,773,557) 22,742,571 49,516,128 Fund balance at beginning of year 123,438,400 126,538,257 163,567,506 37,029,249 Fund balance at end of year $ 100,099,800 $ 99,764,700 $ 186,310,077 $ 86,545,377 Reconciliation: Net change in fund balance, budgetary basis $ 22,742,571 Net change in fair value of investments 4,940,315 Miscellaneous revenue related to indirect cost (8,780,800) Change in inventory 130,010 General government expenditures related to indirect cost 8,780,800 Property Appraiser general government refunds to other governments not budgeted (1,245,852) Public safety expenditures for multi-period projects not budgeted (550,000) Public safety capital outlay funded by outside sources not budgeted (441,405) Lease inception related capital outlay not budget (749,281) Lease inception proceeds 749,281 SBITA inception related capital outlay (7,593,744) SBITA inception proceeds 7,593,744 Interfund transfers in 2,846,000 Interfund transfers out (2,846,000) Advances budgeted as transfers 5,500,000 Net change in fund balance, GAAP basis $ 31,075,639 The notes to the financial statements are an integral part of this statement. 2626 Basic Financial Statements FINANCIAL SECTION Page 857 of 5415 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, 2024 Original Final Budget Budget Actual Variance Revenues: Taxes $ 3,584,100 $ 3,584,100 $ 3,584,100 $ - Charges for services 232,600 232,600 136,800 (95,800) Interest earnings 44,600 44,600 485,504 440,904 Miscellaneous - - 3,000 3,000 Total revenues 3,861,300 3,861,300 4,209,404 348,104 Expenditures: Economic environment Personal service 581,900 581,900 392,822 189,078 Operating 1,464,100 5,624,257 1,117,196 4,507,061 Capital outlay 1,783,500 9,035,822 125,614 8,910,208 Total expenditures 3,829,500 15,241,979 1,635,632 13,606,347 Excess (deficit) of revenues over (under) expenditures 31,800 (11,380,679) 2,573,772 13,954,451 Other financing sources (uses): Transfers in 2,647,500 3,088,500 3,143,843 55,343 Transfers out (2,647,500) (3,088,500) (3,143,843) (55,343) Total other financing sources (uses) - - - - Net change in fund balances 31,800 (11,380,679) 2,573,772 13,954,451 Fund balances at beginning of year - 12,722,880 14,298,670 1,575,790 Fund balances at end of year $ 31,800 $ 1,342,201 $ 16,872,442 $ 15,530,241 Reconciliation: Net change in fund balance, budgetary basis $ 2,573,772 Net change in fair value of investments 264,909 Interfund transfers in (3,143,843) Interfund transfers out 3,143,843 Net change in fund balance, GAAP basis $ 2,838,681 The notes to the financial statements are an integral part of this statement. 2727 FINANCIAL SECTION Basic Financial Statements Page 858 of 5415 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, 2024 Original Final Budget Budget Actual Variance Revenues: Taxes $ 1,218,400 $ 1,218,400 $ 1,218,400 $ - Intergovernmental - 987,000 - (987,000) Charges for services 92,800 1,344,171 170,544 (1,173,627) Interest earnings 13,700 13,700 144,937 131,237 Total revenues 1,324,900 3,563,271 1,533,881 (2,029,390) Expenditures: Economic environment Personal service 258,900 266,310 263,992 2,318 Operating 400,000 903,000 275,994 627,006 Capital outlay 612,300 5,752,736 92,763 5,659,973 Total expenditures 1,271,200 6,922,046 632,749 6,289,297 Excess (deficit) of revenues over (under) expenditures 53,700 (3,358,775) 901,132 4,259,907 Other financing sources (uses): Sale of capital assets - - 115 115 Transfers in 542,700 763,400 840,729 77,329 Transfers out (542,700) (763,400) (840,729) (77,329) Total other financing sources (uses) - - 115 115 Net change in fund balances 53,700 (3,358,775) 901,247 4,260,022 Fund balances at beginning of year - 3,779,475 3,182,050 (597,425) Fund balances at end of year $ 53,700 $ 420,700 $ 4,083,297 $ 3,662,597 Reconciliation: Net change in fund balance, budgetary basis $ 901,247 Net change in fair value of investments 79,621 Interfund transfers in (840,729) Interfund transfers out 840,729 Net change in fund balance, GAAP basis $ 980,868 The notes to the financial statements are an integral part of this statement. 2828 Basic Financial Statements FINANCIAL SECTION Page 859 of 5415 COLLIER COUNTY, FLORIDA GRANTS AND SHARED REVENUE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2024 Original Final Budget Budget Actual Variance Revenues: Intergovernmental $ 3,000 $ 149,116,836 $ 34,285,248 $ (114,831,588) Charges for services - 1,088,399 487,471 (600,928) Interest earnings 152,300 196,779 1,715,603 1,518,824 Miscellaneous - 2,262,611 822,195 (1,440,416) Total revenues 155,300 152,664,625 37,310,517 (115,354,108) Expenditures: Current: General government 15,400 2,863,003 1,557,818 1,305,185 Public safety 909,300 929,790 23,540 906,250 Physical environment 476,100 12,080,323 6,199,832 5,880,491 Transportation - 2,033,925 132,637 1,901,288 Economic environment - 64,918,920 17,635,643 47,283,277 Human services 1,079,000 17,443,109 4,562,139 12,880,970 Culture and recreation - 2,378,788 266,702 2,112,086 Debt service - 100,000 97,684 2,316 Capital outlay 12,000 86,702,909 13,397,424 73,305,485 Total expenditures 2,491,800 189,450,767 43,873,419 145,577,348 Deficit of revenues over (under) expenditures (2,336,500) (36,786,142) (6,562,902) 30,223,240 Other financing sources (uses): Sale of capital assets - 4 483 479 Transfers in 1,452,900 27,864,704 7,929,958 (19,934,746) Transfers out (185,000) (274,782) (215,292) 59,490 Total other financing sources (uses) 1,267,900 27,589,926 7,715,149 (19,874,777) Net change in fund balances (1,068,600) (9,196,216) 1,152,247 10,348,463 Fund balances at beginning of year 3,859,400 11,742,534 11,290,689 (451,845) Fund balances at end of year $ 2,790,800 $ 2,546,318 $ 12,442,936 $ 9,896,618 Reconciliation: Net change in fund balance, budgetary basis $ 1,152,247 Net change in fair value of investments 1,302,063 Lease inception related capital outlay not budget 427,808 Lease inception proceeds (427,808) Interfund transfers in (215,292) Interfund transfers out 215,292 Unbudgeted funds 475,900 Net change in fund balance, GAAP basis $ 2,930,210 The notes to the financial statements are an integral part of this statement. 2929 FINANCIAL SECTION Basic Financial Statements Page 860 of 5415 COLLIER COUNTY, FLORIDA DISASTER RECOVERY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) For the Fiscal Year Ended September 30, 2024 Original Final Budget Budget Actual Variance Revenues: Intergovernmental $ - $ - $ 2,311,780 $ 2,311,780 Interest earnings - - 756,358 756,358 Miscellaneous - - 250,000 250,000 Total revenues - - 3,318,138 3,318,138 Expenditures: Current: General government - 15,714 2,015,020 (1,999,306) Public safety - 112,256 1,116,484 (1,004,228) Physical environment - 662,750 8,958,049 (8,295,299) Transportation - 230,091 73,737 156,354 Economic environment - 5,000 - 5,000 Human services - 5,000 - 5,000 Culture and recreation - 120,000 1,502,375 (1,382,375) Debt service - 80,000 75,644 4,356 Capital outlay - 37,749,531 3,208,345 34,541,186 Total expenditures - 38,980,342 16,949,654 22,030,688 Deficit of revenues over (under) expenditures - (38,980,342) (13,631,516) 25,348,826 Other financing sources (uses): Insurance proceeds - 12,709,900 8,114,508 (4,595,392) Transfers in 27,000,000 27,000,000 2,000,000 (25,000,000) Transfers out - (9,709,900) - 9,709,900 Total other financing sources (uses) 27,000,000 30,000,000 10,114,508 (19,885,492) Net change in fund balances 27,000,000 (8,980,342) (3,517,008) 5,463,334 Fund balances at beginning of year (25,000,000) 10,980,342 (11,575,871) (22,556,213) Fund balances at end of year $ 2,000,000 $ 2,000,000 $ (15,092,879) $ (17,092,879) Reconciliation: Net change in fund balance, budgetary basis $ (3,517,008) Net change in fair value of investments 442,444 Lease inception related capital outlay not budget (170,128) Lease inception proceeds 170,128 Net change in fund balance, GAAP basis $ (3,074,564) The notes to the financial statements are an integral part of this statement. 3030 Basic Financial Statements FINANCIAL SECTION Page 861 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2024 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 $ 278,429,607 $ 57,888,716 $ 50,569,792 $ 9,703,507 $ 396,591,622 $ 104,268,891 Receivables: Trade, net 22,178,788 1,308,073 1,865,953 38,944 25,391,758 1,618,900 Special assessments 37,528 - - - 37,528 - Interest 1,333,004 351,785 187,043 40,271 1,912,103 399,093 Leases 31,363 - - 211,606 242,969 - Due from other funds - 185,190 - 22,024 207,214 24,365 Due from other governments 742,665 2,383,686 1,832,803 3,261 4,962,415 254,927 Deposits 1,144,601 - - - 1,144,601 - Inventory 9,856,823 - 1,066,164 177,886 11,100,873 718,370 Prepaid costs 208,768 40,471 - - 249,239 7,358,275 Restricted assets: Cash and investments 16,715,531 127,472 401,521 436,646 17,681,170 - Interest receivable 121,721 - 1,109 - 122,830 - Due from other governments - - 393,354 3,512,986 3,906,340 - Total current assets 330,800,399 62,285,393 56,317,739 14,147,131 463,550,662 114,642,821 Noncurrent assets: Restricted assets: Cash and investments 60,179,349 - - - 60,179,349 - Cash with fiscal agent 101,037,931 - - - 101,037,931 - Receivables: Leases 717,502 - - 2,629,565 3,347,067 - Advances to other funds 2,790,100 - - - 2,790,100 - Capital assets: Land and nondepreciable capital assets 229,101,435 9,848,146 - 9,444,788 248,394,369 200,039 Depreciable capital assets, net 784,259,500 37,410,064 9,291,456 66,049,466 897,010,486 24,686,815 Total noncurrent assets 1,178,085,817 47,258,210 9,291,456 78,123,819 1,312,759,302 24,886,854 Total assets 1,508,886,216 109,543,603 65,609,195 92,270,950 1,776,309,964 139,529,675 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to debt 1,210,435 - - - 1,210,435 - Deferred outflows of resources related to OPEB 486,399 44,218 232,954 25,883 789,454 103,534 Deferred outflows of resources related to pensions 8,787,273 733,277 10,899,573 423,471 20,843,594 2,011,283 Total deferred outflows of resources $ 10,484,107 $ 777,495 $ 11,132,527 $ 449,354 $ 22,843,483 $ 2,114,817 (Continued) 3131 FINANCIAL SECTION Basic Financial Statements Page 862 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2024 Business-type Activities Enterprise Funds Governmental County Emergency Activities - Water Solid Waste Medical Other Internal and Sewer Disposal Services Funds Total Service Funds LIABILITIES Current liabilities: Accounts payable $ 13,048,069 $ 2,832,202 $ 910,652 $ 1,196,855 $ 17,987,778 $ 2,140,579 Wages payable 2,522,679 209,553 1,826,349 125,439 4,684,020 605,162 Retainage payable 2,738,525 - - 4,224 2,742,749 - Due to other funds 119,477 20,213 80,800 2,800 223,290 14,104 Due to other governments 142,312 268 2,307 3,990 148,877 65,315 Unearned revenues 47,163 - - 3,117 50,280 167,388 Self-insurance claims payable - - - - - 13,334,434 Compensated absences 2,480,411 235,655 832,825 106,296 3,655,187 579,691 Total OPEB Liability 127,710 11,610 61,165 6,796 207,281 27,184 Net pension liability 63,036 5,429 30,226 3,483 102,174 13,267 Landfill post-closure liability - 43,901 - - 43,901 - Lease payable 43,537 - 30,594 - 74,131 280 SBITA liability 62,246 - - - 62,246 1,927,688 Bonds, loans and notes payable 10,311,751 - - - 10,311,751 - Liabilities payable from restricted assets Accounts payable 8,925,699 - - 1,800,048 10,725,747 - Wages payable - - 29,405 - 29,405 - Retainage payable 1,319,980 - - 36,257 1,356,237 - Due to other governments - - 262 137,060 137,322 - Refundable deposits 247,158 - - 9,926 257,084 - Unearned revenue - 127,472 - - 127,472 - Interest payable 2,715,597 - - - 2,715,597 - Bonds, loans and notes payable 3,507,097 - - - 3,507,097 - Total current liabilities 48,422,447 3,486,303 3,804,585 3,436,291 59,149,626 18,875,092 Noncurrent liabilities: Arbitrage rebate 3,383,669 - - - 3,383,669 - Self-insurance claims payable - - - - - 2,324,900 Compensated absences 620,103 58,914 208,206 26,573 913,796 144,924 Lease payable 271,681 - 292,515 - 564,196 - SBITA liability 318,615 - - - 318,615 1,672,680 Total OPEB liability 2,000,910 181,900 958,307 106,479 3,247,596 425,915 Net pension liability 35,582,744 2,991,809 37,763,457 1,774,101 78,112,111 7,990,419 Landfill post closure liability - 1,460,380 - - 1,460,380 - Bonds, loans and notes payable, net 310,163,581 - - - 310,163,581 - Total noncurrent liabilities 352,341,303 4,693,003 39,222,485 1,907,153 398,163,944 12,558,838 Total liabilities 400,763,750 8,179,306 43,027,070 5,343,444 457,313,570 31,433,930 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 656,465 - - 2,752,492 3,408,957 - Deferred inflows of resources related to OPEB 193,043 17,549 92,455 10,273 313,320 41,091 Deferred inflows of resources related to pensions 3,966,401 335,141 3,743,654 202,099 8,247,295 879,434 Deferred inflows of recources related to debt 5,827,473 - - - 5,827,473 - Total deferred inflows of resources 10,643,382 352,690 3,836,109 2,964,864 17,797,045 920,525 NET POSITION Net investment in capital assets 781,630,368 47,239,380 8,968,347 74,543,942 912,382,037 21,006,775 Restricted for: Grants and other purposes - - 766,317 2,865,320 3,631,637 - Growth related capital expansion 23,277,035 - - - 23,277,035 - Renewal and replacement 300,000 - - - 300,000 - Debt service 22,489,886 - - - 22,489,886 - Unrestricted 280,265,902 54,549,722 20,143,879 7,002,734 361,962,237 88,283,262 Total net position $ 1,107,963,191 $ 101,789,102 $ 29,878,543 $ 84,411,996 1,324,042,832 $ 109,290,037 Cumulative consolidation adjustment for internal service fund activities related to enterprise funds (8,313,159) Net position of Business-type Activities $ 1,315,729,673 The notes to the financial statements are an integral part of this statement. 3232 Basic Financial Statements FINANCIAL SECTION Page 863 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2024 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 $ 220,685,685 $ 70,962,608 $ 19,112,673 $ 11,417,911 $ 322,178,877 $ 128,132,267 Miscellaneous 345,453 238,574 59,334 94,088 737,449 3,035,498 Total operating revenues 221,031,138 71,201,182 19,172,007 11,511,999 322,916,326 131,167,765 Operating expenses: Personal services 50,944,979 4,191,836 38,462,846 2,556,849 96,156,510 11,737,273 General and administrative 86,139,653 54,755,462 8,088,656 21,518,800 170,502,571 34,148,316 Insurance claims paid - - - - - 88,317,450 Depreciation and amortization 51,775,852 2,219,154 2,477,903 4,854,677 61,327,586 6,376,627 Total operating expenses 188,860,484 61,166,452 49,029,405 28,930,326 327,986,667 140,579,666 Operating income (loss) 32,170,654 10,034,730 (29,857,398) (17,418,327) (5,070,341) (9,411,901) Non-operating revenues (expenses): Operating grants and contributions 1,095 628,425 2,835,536 3,893,034 7,358,090 - Interest earnings 27,036,034 3,327,828 2,499,566 737,147 33,600,575 6,491,150 Insurance reimbursement 148,753 2,805 16,866 105 168,529 540,391 Interest expense (9,389,094) - (6,453) - (9,395,547) (142,220) Gain (loss) on disposal of capital assets 67,523 89,559 (18,320) 10,834 149,596 200,297 Rebatable arbitrage (3,034,662) - - - (3,034,662) - Total non-operating revenues (expenses) 14,829,649 4,048,617 5,327,195 4,641,120 28,846,581 7,089,618 Income (loss) before contributions and transfers 47,000,303 14,083,347 (24,530,203) (12,777,207) 23,776,240 (2,322,283) Capital grants and contributions 40,899,445 1,119 - 6,826,360 47,726,924 - Transfers in - - 29,392,300 5,808,702 35,201,002 9,939,300 Transfers out (12,296,320) (1,048,526) (8,300) (290,700) (13,643,846) - Total transfers and contributions 28,603,125 (1,047,407) 29,384,000 12,344,362 69,284,080 9,939,300 Change in net position 75,603,428 13,035,940 4,853,797 (432,845) 93,060,320 7,617,017 Net position - beginning 1,032,359,763 88,753,162 25,024,746 84,844,841 101,673,020 Net position - ending $ 1,107,963,191 $ 101,789,102 $ 29,878,543 $ 84,411,996 $ 109,290,037 Consolidation adjustment for internal service fund activities related to enterprise funds (3,112,657) Change in net position of Business-type Activities $ 89,947,663 The notes to the financial statements are an integral part of this statement. 3333 FINANCIAL SECTION Basic Financial Statements Page 864 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2024 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 $ 219,349,103 $ 71,173,734 $ 20,340,980 $ 11,488,394 $ 322,352,211 $ - Cash received from other funds for services - - - - - 119,410,501 Cash received from other governments for services - - - - - 439,350 Cash received from employees for services - - - - - 8,600,548 Cash received from refundable deposits 218,034 599,770 - - 817,804 - Cash received from retirees for services - - - - - 2,311,843 Cash payments on behalf of retirees - - - - - (2,620,265) Cash payments for goods and services (71,478,179) (49,705,896) (5,095,433) (17,037,561) (143,317,069) (31,174,832) Cash payments for self insurance claims - - - - - (86,229,552) Cash payments to employees (49,595,272) (4,398,447) (35,473,965) (2,469,252) (91,936,936) (11,308,999) Cash payments for interfund services (14,399,019) (5,506,110) (2,939,232) (4,439,560) (27,283,921) (1,544,603) Cash payments from refundable deposits (187,792) (612,369) - - (800,161) - Net cash provided by (used for) operating activities 83,906,875 11,550,682 (23,167,650) (12,457,979) 59,831,928 (2,116,009) Cash flows from non-capital financing activities: Cash received from operating grants 1,095 103,373 2,350,814 3,535,540 5,990,822 - Cash transfers from other funds 88,214,053 6,081,200 43,168,550 7,055,658 144,519,461 9,939,300 Cash transfers to other funds (90,799,820) (7,129,726) (4,832,408) (1,528,162) (104,290,116) - Net cash provided by (used for) non-capital financing activities (2,584,672) (945,153) 40,686,956 9,063,036 46,220,167 9,939,300 Cash flows from capital and related financing activities: System development charges 17,349,184 - - - 17,349,184 - Receipts from insurance reimbursements 148,753 2,805 16,866 105 168,529 570,114 Proceeds from disposal of capital assets 107,927 96,545 29,513 17,793 251,778 201,009 Proceeds from capital grants 5,071 - - 5,937,109 5,942,180 - Proceeds from leasing activities 32,765 - - 204,245 237,010 - Payments for capital acquisitions (70,112,149) (965,566) (467,381) (3,319,884) (74,864,980) (4,911,100) Payments for construction escrow 600,000 - - - 600,000 - Principal payments on bonds, loans and notes (13,973,000) - - - (13,973,000) - Principal payments on leases (66,753) - (29,997) - (96,750) (3,335) Principal payments on SBITA (55,919) - - - (55,919) (1,879,245) Interest and fiscal agent fees paid (12,432,783) - (6,453) - (12,439,236) (142,220) Net cash provided by (used for) capital and related financing activities (78,396,904) (866,216) (457,452) 2,839,368 (76,881,204) (6,164,777) Cash flows from investing activities: Interest on investments 26,092,958 3,167,147 2,350,742 711,226 32,322,073 6,225,089 Net cash provided by investing activities 26,092,958 3,167,147 2,350,742 711,226 32,322,073 6,225,089 Net increase in cash and investments 29,018,257 12,906,460 19,412,596 155,651 61,492,964 7,883,603 Cash and investments, October 1, 2023 427,344,161 45,109,728 31,558,717 9,984,502 513,997,108 96,385,288 Cash and investments, September 30, 2024 $ 456,362,418 $ 58,016,188 $ 50,971,313 $ 10,140,153 $ 575,490,072 $ 104,268,891 Current cash and investments $ 278,429,607 $ 57,888,716 $ 50,569,792 $ 9,703,507 $ 396,591,622 $ 104,268,891 Current cash and investments-restricted 16,715,531 127,472 401,521 436,646 17,681,170 - Noncurrent cash and investments-restricted 60,179,349 - - - 60,179,349 - Noncurrent cash with fiscal agent-restricted 101,037,931 - - - 101,037,931 - Cash and investments, September 30, 2024 $ 456,362,418 $ 58,016,188 $ 50,971,313 $ 10,140,153 $ 575,490,072 $ 104,268,891 (Continued) 3434 Basic Financial Statements FINANCIAL SECTION Page 865 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Fiscal Year Ended September 30, 2024 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)$ 32,170,654 $ 10,034,730 $ (29,857,398) $ (17,418,327) $ (5,070,341) $ (9,411,901) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation and amortization expense 51,775,852 2,219,154 2,477,903 4,854,677 61,327,586 6,376,627 Net changes in assets and liabilities: Trade receivable (1,305,310) (79,895) 1,108,453 (17,372) (294,124) 67,250 Due from other funds - 533 - - 533 7,857 Due from other governments (90,655) (4,940) 11,142 - (84,453) 442 Inventory 1,464,368 - (17,001) 43,730 1,491,097 (6,486) Prepaid costs (71,248) (186) - 21,350 (50,084) (952,506) Accounts payable (1,964,020) (475,643) 37,243 213,224 (2,189,196) (285,111) Retainage payable 482,502 - - 4,224 486,726 - Wages payable 283,996 (88) 360,249 16,401 660,558 84,372 Due to other funds 111,279 19,285 80,800 - 211,364 14,104 Due to other governments 1,499 (528) 2,327 (8,191) (4,893) 28,068 Compensated absences 195,474 27,639 24,078 (10,055) 237,136 93,331 Refundable deposits 30,242 - - - 30,242 - Unearned revenue - (12,599) - (6,233) (18,832) 31,541 Self-insurance claims payable - - - - - 1,585,832 Total OPEB liability 546,262 40,025 178,959 29,224 794,470 127,858 Deferred outflows of resources related to OPEB (362,402) (32,191) (167,090) (19,296) (580,979) (78,048) Deferred inflows of resources related to OPEB (81,055) (9,038) (53,140) (4,286) (147,519) (15,248) Net pension liability (2,044,280) (543,327) 542,415 (61,193) (2,106,385) (400,502) Deferred outflows of resources related to pensions 168,025 102,377 (917,744) 4,074 (643,268) 16,188 Deferred inflows of resources related to pensions 2,643,687 207,992 3,021,154 132,728 6,005,561 600,323 Deferred inflows of resources related to leases (47,995) - - (232,658) (280,653) - Landfill post closure liability - 57,382 - - 57,382 - Total adjustments 51,736,221 1,515,952 6,689,748 4,960,348 64,902,269 7,295,892 Net cash provided by (used for) operating activities $ 83,906,875 $ 11,550,682 $ (23,167,650) $ (12,457,979) $ 59,831,928 $ (2,116,009) Non-cash investing, capital and financing activities: Change in fair value of investments $ 10,353,025 $ 1,139,699 $ 801,420 $ 247,938 $ 12,542,082 $ 2,775,095 Arbitrage rebate 3,383,669 - - - 3,383,669 - Developer infrastructure contributions 23,188,872 - - - 23,188,872 - Contributed capital assets 356,308 - - - 356,308 - Lease right-to-use assets acquired 9,032 - - - 9,032 - SBITA right-to-use assets acquired - - - - - 3,971,610 Change in capital related grant receivable 5,071 - - 873,751 878,822 - Change in special assessment receivable 10 - - - 10 - Capital related accounts payable 16,214,394 - - 914,055 17,128,449 279,431 Capital related retainage 3,197,279 - - 36,257 3,233,536 - The notes to the financial statements are an integral part of this statement. 3535 FINANCIAL SECTION Basic Financial Statements Page 866 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS September 30, 2024 Sheriff Private Purpose Custodial Trust Fund Funds ASSETS Cash and investments $ 404,783 $ 27,663,144 Trade receivable, net - 22,603 Due from other governments - 87,922 Total assets $ 404,783 $ 27,773,669 LIABILITIES Due to other governments $ - $ 9,446,202 Due to individuals - 379,907 Total liabilities $ - $ 9,826,109 FIDUCIARY NET POSITION Restricted for individuals and governments $ 404,783 $ 17,947,560 The notes to the financial statements are an integral part of this statement. 3636 Basic Financial Statements FINANCIAL SECTION Page 867 of 5415 COLLIER COUNTY, FLORIDA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCUARY FUNDS For the Fiscal Year Ended September 30, 2024 Sheriff Private Purpose Custodial Trust Fund Funds ADDITIONS: Contributions for individuals $ 563,290 $ 11,762,660 Fees collected for other governments - 1,151,257,051 Miscellaneous - 1,120,341 Total additions 563,290 1,164,140,052 DEDUCTIONS: Beneficiary payments to individuals 534,312 13,161,426 Payment of fees to other governments - 1,152,437,157 Payments to other entities - 368,947 Total deductions 534,312 1,165,967,530 Net increase (decrease) in fiduciary net position 28,978 (1,827,478) Fiduciary net position - beginning of year 375,805 19,775,038 Fiduciary net position - end of year $ 404,783 $ 17,947,560 The notes to the financial statements are an integral part of this statement. 3737 FINANCIAL SECTION Basic Financial Statements Page 868 of 5415 Page 869 of 5415 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 a 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 MPO 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 39 FINANCIAL SECTION Notes to the Financial Statements Page 870 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 725 High Pines Drive 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 40 Notes to the Financial Statements FINANCIAL SECTION Page 871 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. 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 Community Redevelopment Area Special Revenue Fund – the Bayshore/Gateway Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Bayshore/Gateway Community Redevelopment Areas. Immokalee Community Redevelopment Area Special Revenue Fund – the Immokalee Community Redevelopment fund is used to account for the receipt and expenditure of tax increment revenues generated by the Immokalee Community Redevelopment Area. Grants and Shared Revenue Special Revenue Fund – the Grants and Shared Revenue fund is used to account for the receipt and expenditure of federal, state and local grants. Disaster Recovery Fund - the Disaster Recovery fund is used to account for the receipt of resources and expenditures related to the recovery from Hurricanes Ian, Helene and Milton. 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 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 41 FINANCIAL SECTION Notes to the Financial Statements Page 872 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) reports the following Internal Service Funds: Self-Insurance, Sheriff’s Self-Insurance, Fleet Management, Motor Pool Capital Recovery and Information Technology. Fiduciary Funds - Private Purpose Trust Funds – Fiduciary funds - private purpose trust funds are used to account for assets held by Collier County in which the principal and income benefit individuals, private organizations or other governments. Private purpose trust funds are accounted for using the accrual basis of accounting. The Sheriff maintains this fund for the employee flexible spending account. Fiduciary Funds - Custodial Funds – Fiduciary funds - custodial funds are used to account for assets held by Collier County as an agent for individuals, private organizations and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. The Sheriff, Clerk of the Circuit Court and Comptroller and Tax Collector all maintain custodial 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, proprietary fund, private purpose trust fund and custodial 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. 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 earlier than 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. 42 Notes to the Financial Statements FINANCIAL SECTION Page 873 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 intradepartmental budget changes within the same fund 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 a 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 custodial funds. 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 non-court budget in accordance with Section 218.35, Florida Statutes. 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 Note17 on page 82. 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 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; 43 FINANCIAL SECTION Notes to the Financial Statements Page 874 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 fair 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). 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 Investment Pools (FL PALM and FLCLASS) and 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 Public Assets for Liquidity Management’s FL PALM Portfolio Board of Trustees has determined that it will manage the FL PALM Portfolio in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants requirements, as applicable, for continued use of amortized cost. Therefore, the fair value of the County’s position in the pool is the same as the value of the pool shares. Throughout the year, and as of September 30, 2024, FL PALM Portfolio contained certain floating and adjustable rate securities. These investments represented 26.5% of the FL PALM Portfolio’s investments as of September 30, 2024. In addition, and in accordance with GASB 79, the County should disclose the presence of any limitations or restrictions on withdrawals in notes to the financial statements. The FL PALM portfolio Board of Trustees (Trustees) can suspend the right of withdrawal or postpone the date of payment if the Trustees determine that there is an emergency that makes the sale of a Portfolio’s securities or determination of its net asset value not reasonably practical. Florida Cooperative Liquid Assets Securities System (FLCLASS) does not meet all of the specific criteria outlined in GASB 79 for measurement at amortized cost. FLCLASS measures its investments at fair value in accordance with paragraph 41 of GASB 79 and paragraph 11 of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as amended, and therefore a participant’s investment in FLCLASS is not required to be categorized within the fair value hierarchy for purposes of paragraph 81a(2) of GASB 72. Throughout the year, and as of September 30, 2024, FLCLASS Daily Liquidity Pool contained certain floating and adjustable rate securities. These investments represented 66.4% of the FLCLASS Daily Liquidity Pool and Enhanced Cash Pool as of September 30, 2024. Florida PRIME, administered by the State Board of Administration (SBA) 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, 2024, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 27.9% of Florida PRIME’s portfolio at September 30, 2024. 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 44 Notes to the Financial Statements FINANCIAL SECTION Page 875 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (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, 2024, 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 all receivables outstanding in excess of one 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 with the exception of Fleet Management which uses the weighted average 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 $3,838,014 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. The County capitalizes expenditures with a cost of $5,000 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. 45 FINANCIAL SECTION Notes to the Financial Statements Page 876 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 or the useful life of the underlying asset if shorter than 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. Lease assets are reported with other capital assets and lease liabilities are reported with long‐term debt on the statement of net position. 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 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. SUBSCRIPTION BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) The County has entered into agreements for the right to use various subscription based information technology for computer software and infrastructure. The County recognizes a subscription based information technology arrangement liability and an intangible right‐to‐use asset (subscription based IT arrangement asset) in the government‐wide and proprietary fund financial statements. 46 Notes to the Financial Statements FINANCIAL SECTION Page 877 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At the commencement of a SBITA contract, the County initially measures the liability at the present value of payments expected to be made during the SBITA contract term. Subsequently, the SBITA liability is reduced by the principal portion of lease payments made. The SBITA asset is initially measured as the initial amount of the SBITA liability, adjusted for SBITA contract payments made at or before the SBITA contract commencement date, plus certain initial direct costs. Subsequently, the SBITA asset is amortized on a straight‐line basis over the term of the SBITA contract or the useful life of the underlying asset if shorter than the term of the SBITA contract. Key estimates and judgments related to SBITA contracts include how the County determines (1) the discount rate it uses to discount the expected SBITA contract payments to present value, (2) SBITA contract term, and (3) SBITA contract payments. The County uses the interest rate charged by the vendor as the discount rate. When the interest rate charged by the vendor is not provided, the County generally uses its estimated incremental borrowing rate as the discount rate for SBITA contract. The County monitors changes in circumstances that would require a remeasurement of its SBITA contract and will remeasure the SBITA asset and liability if certain changes occur that are expected to significantly affect the amount of the SBITA liability. SBITA assets are reported with other capital assets and SBITA liabilities are reported with long‐term debt on the statement of net position. 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 assets 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 assets 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 assets 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. BOND PREMIUMS, DISCOUNTS, GAIN OR LOSS ON DEFEASANCE AND ISSUANCE COSTS Bond premiums, discounts 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 and discounts are presented as an increase, or decrease, respectively, 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 discounts 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 and discounts on debt issuances are also reported as other financing sources, or uses. Issuance costs, including bond insurance costs, whether or not they have been paid from debt proceeds are reported as debt service expenditures. 47 FINANCIAL SECTION Notes to the Financial Statements Page 878 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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, 2024 are not significant. Discounts on property taxes are allowed for payments made prior to the April 1st 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 1st of each year. No accrual for the property tax levy becoming due in November 2024 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, 2024 are as follows: Property Tax Cycle Date Assessment roll compiled January 1, 2023 Assessment roll certified July 1, 2023 Millage resolution approved Within 35 days of the certification of the assessment roll Beginning of fiscal year for tax levy October 1, 2023 Taxes due and payable (levy date) November 1, 2023 Collection dates By November 30: 4% discount By December 31: 3% discount By January 31: 2% discount By February 28: 1% discount Due date March 31, 2024 Delinquent (lien date) April 1, 2024 Tax certificates sold Prior to June 1, 2024 ACCOUNTING ESTIMATES 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, 2024 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. 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. On December 31, 2023, the Board increased the payout of unused vacation from 440 hours to 500 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 600 hours of unused vacation time. The Clerk of the Circuit Court and Comptroller allows for a percentage of unused sick leave payout based upon years of service for employees hired before December 21, 2010. On January 5th, 2024, the Clerk increased the payout of unused vacation from 240 hours to 440 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 500 hours of unused vacation. All full-time employees of the Tax Collector are allowed to accumulate between 136 and 240 hours of PTO annually, depending on tenure. Upon separation of service, employees receive 100% of accumulated PTO hours at their current rate of pay. 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. 48 Notes to the Financial Statements FINANCIAL SECTION Page 879 of 5415 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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. NOTE 2 – CASH AND INVESTMENTS As of September 30, 2024, the County had the following cash, cash equivalents and investments: Investment Final Maturities Fair Value First Call Date Call Frequency Rating * Cash on hand N/A $ 89,374 N/A N/A N/A Demand deposits N/A 524,885,533 N/A N/A N/A Cash with fiscal agent N/A 132,245,379 N/A N/A N/A Money market / CD N/A 42,837 N/A N/A N/A Intergovernmental Pools: Florida PRIME N/A 46,602,257 N/A N/A AAAm FLCLASS Daily Liquidity N/A 155,956,691 N/A N/A AAAm FL PALM N/A 161,071,587 N/A N/A AAAm Federal Farm Credit Bank 10/15/24 499,140 none N/A AA+ US Treasury Note 10/31/24 19,990,366 none N/A AA+ Federal Farm Credit Bank 11/01/24 10,002,419 none N/A AA+ Federal Home Loan Bank 11/15/24 99,531,254 02/15/22 quarterly AA+ Federal Home Loan Bank 11/26/24 24,841,128 11/26/21 quarterly AA+ Federal Home Loan Bank 12/09/24 248,105 none N/A AA+ Federal National Mortgage Assoc. 12/16/24 24,776,205 06/16/21 quarterly AA+ Federal Home Loan Bank 12/30/24 24,748,224 09/30/21 quarterly AA+ Federal Farm Credit Bank 01/13/25 389,999 none N/A AA+ Federal Home Loan Bank 01/15/25 493,315 none N/A AA+ Federal Home Loan Bank 01/29/25 22,932,157 07/29/21 quarterly AA+ Federal Farm Credit Bank 02/10/25 492,310 none N/A AA+ Federal Home Loan Bank 02/26/25 24,612,827 11/26/21 quarterly AA+ Federal Home Loan Bank 03/28/25 236,458 none N/A AA+ US Treasury Note 03/31/25 495,815 none N/A AA+ US Treasury Note 04/15/25 495,690 none N/A AA+ Federal Farm Credit Bank 05/06/25 24,490,986 05/06/22 continuously AA+ US Treasury Note 05/31/25 487,085 none N/A AA+ US Treasury Note 06/15/25 14,864,180 none N/A AA+ US Treasury Note 06/30/25 15,093,388 none N/A AA+ Federal Home Loan Bank 07/18/25 477,910 none N/A AA+ Federal Farm Credit Bank 07/22/25 15,095,653 none N/A AA+ US Treasury Note 07/31/25 15,082,266 none N/A AA+ US Treasury Note 07/31/25 15,082,266 none N/A AA+ Federal Home Loan Bank 08/27/25 24,231,057 09/27/21 monthly AA+ Federal Home Loan Bank 09/12/25 4,794,637 none N/A AA+ Federal Farm Credit Bank 09/16/25 483,570 none N/A AA+ Federal Home Loan Bank STEP 09/30/25 23,369,508 12/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 10/17/25 10,048,058 04/17/25 one time AA+ Federal Home Loan Mortgage Corp. 10/20/25 474,596 none N/A Aaa Federal Home Loan Mortgage Corp. 10/27/25 14,486,914 07/27/24 quarterly AA+ Federal Agricultural Mortgage Corp. 11/14/25 10,117,337 none N/A AA+ US Treasury Note 11/15/25 503,184 none N/A AA+ Federal Home Loan Mortgage Corp. 11/25/25 482,215 none N/A AA+ Federal Home Loan Mortgage Corp. 12/01/25 24,109,318 12/01/21 quarterly AA+ Federal National Mortgage Assoc. 12/10/25 24,060,914 06/10/21 quarterly AA+ 49 FINANCIAL SECTION Notes to the Financial Statements Page 880 of 5415 NOTE 2 – CASH AND INVESTMENTS (Continued) Investment Final Maturities Fair Value First Call Date Call Frequency Rating * Federal Home Loan Mortgage Corp. 12/17/25 24,075,036 12/17/21 quarterly AA+ Federal Home Loan Mortgage Corp. 01/07/26 241,920 none N/A Aaa Federal Home Loan Mortgage Corp. 01/09/26 20,001,200 10/09/24 one time AA+ Federal Home Loan Bank STEP 01/29/26 240,753 none N/A AA+ Federal Home Loan Bank 01/29/26 239,145 none N/A AA+ US Treasury Note 01/31/26 20,108,594 none N/A AA+ US Treasury Note 01/31/26 20,108,594 none N/A AA+ Federal Farm Credit Bank 02/04/26 238,943 none N/A AA+ Amazon Inc. Corp Note 02/08/26 9,974,898 none N/A AA+ Federal Home Loan Bank STEP 02/18/26 481,850 none N/A AA+ US Treasury Note 02/28/26 10,112,890 none N/A AA+ Federal Home Loan Bank STEP 03/17/26 24,305,482 06/17/21 quarterly AA+ Federal Home Loan Bank STEP 03/23/26 485,155 none N/A AA+ Federal Home Loan Bank STEP 04/28/26 24,070,012 07/28/21 quarterly AA+ Federal Home Loan Mortgage Corp. 05/01/26 25,027,238 05/01/25 quarterly AA+ Federal Home Loan Bank STEP 06/16/26 24,028,776 09/16/21 quarterly AA+ Federal Home Loan Mortgage Corp. 06/23/26 340,814 none N/A Aaa Federal Home Loan Bank STEP 06/24/26 24,013,273 09/24/21 quarterly AA+ Federal Home Loan Bank STEP 06/30/26 24,156,480 09/30/21 quarterly AA+ US Treasury Note 07/15/26 25,342,774 none N/A AA+ US Treasury Note 07/15/26 10,137,109 none N/A AA+ Federal Home Loan Mortgage Corp. 07/30/26 118,370 none N/A Aaa Federal Farm Credit Bank 08/03/26 94,670 none N/A AA+ Federal Home Loan Mortgage Corp. 08/28/26 9,981,353 03/28/24 quarterly AA+ Federal Farm Credit Bank 09/01/26 473,390 none N/A AA+ Federal Farm Credit Bank 09/01/26 23,641,981 09/01/22 continuously AA+ Federal Home Loan Bank 09/16/26 14,186,386 09/16/22 quarterly AA+ Federal Home Loan Bank 09/30/26 490,815 none N/A AA+ Federal Home Loan Bank 09/30/26 23,669,600 12/30/21 quarterly AA+ Federal Home Loan Bank 10/14/26 23,702,784 01/14/22 quarterly AA+ Federal Home Loan Bank 10/21/26 23,678,289 01/21/22 quarterly AA+ Federal Home Loan Bank 10/22/26 23,701,002 11/22/21 monthly AA+ Federal Home Loan Mortgage Corp. 11/13/26 9,994,334 11/23/24 quarterly AA+ US Treasury Note 11/25/26 637,356 none N/A AA+ US Treasury Note 11/30/26 451,621 none N/A AA+ Federal Home Loan Mortgage Corp. 12/18/26 10,003,885 12/18/24 annually AA+ Federal Home Loan Bank 02/26/27 130,519 none N/A AA+ Federal Farm Credit Bank 04/12/27 14,740,978 04/12/23 continuously AA+ Federal Home Loan Mortgage Corp. 06/23/27 1,988,510 12/01/21 quarterly Aaa Federal Farm Credit Bank 07/29/27 10,063,716 06/10/21 quarterly AA+ Federal Farm Credit Bank 07/29/27 5,031,858 12/17/21 quarterly Aaa Federal National Mortgage Assoc. 08/05/27 14,944,748 none N/A Aaa US Treasury Note 08/28/27 240,030 none N/A AA+ US Treasury Note 02/29/28 815,626 none N/A AA+ US Treasury Note 08/31/28 910,429 none N/A AA+ Federal Home Loan Mortgage Corp. 11/27/28 15,005,833 none N/A AA+ Federal Home Loan Mortgage Corp. 12/18/28 20,113,961 none N/A AA+ Federal Home Loan Mortgage Corp. 02/06/29 9,988,380 none N/A AA+ Federal Home Loan Mortgage Corp. 03/27/29 9,742,581 none N/A AA+ Federal National Mortgage Assoc. 04/11/29 9,818,442 none N/A AA+ Apple Inc. Corp Note 04/13/29 9,585,899 06/17/21 quarterly AA+ Federal Home Loan Mortgage Corp. 07/17/29 10,025,369 none N/A AA+ Federal Farm Credit Bank 07/23/29 10,065,795 07/28/21 quarterly AA+ Federal Agricultural Mortgage Corp. 08/06/29 10,093,894 09/16/21 quarterly AA+ Federal Agricultural Mortgage Corp. 08/06/29 10,074,197 none N/A Aaa Federal Home Loan Mortgage Corp. 08/13/29 9,957,731 09/24/21 quarterly AA+ Federal Home Loan Mortgage Corp. 08/14/29 10,014,927 09/30/21 quarterly AA+ Federal Home Loan Mortgage Corp. 08/20/29 10,037,097 none N/A Aaa Federal Home Loan Mortgage Corp. 08/20/29 10,045,393 none N/A AA+ Federal Home Loan Mortgage Corp. 08/20/29 15,001,042 09/01/22 continuously AA+ Federal Agricultural Mortgage Corp. 08/20/29 10,061,808 none N/A AA+ Federal Home Loan Mortgage Corp. 09/04/29 9,903,929 09/16/22 quarterly AA+ Federal Home Loan Mortgage Corp. 09/12/29 9,992,144 12/30/21 quarterly AA+ Federal Home Loan Bank 09/12/29 14,731,449 none N/A AA+ Federal Agricultural Mortgage Corp. 09/24/29 14,935,050 01/14/22 quarterly AA+ Total $ 2,244,132,219 *Credit ratings are Standard & Poor ratings except for Florida Enhanced Cash which is a Fitch rating. 50 Notes to the Financial Statements FINANCIAL SECTION Page 881 of 5415 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/AAAf/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, prime commercial paper rated “A-1” and “P-1”, tax-exempt obligations rated “A-/A3” 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 fair value of the collateral shall maintain a minimum price of 102 percent on U.S. Government securities and Agencies and Instrumentalities, and must be marked to market daily. The final term of the repurchase agreement must be one year or less. 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, 2024, the County had $46,602,257 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, 2024, the County had $155,956,691 was invested in the FLCLASS Daily Liquidity Fund. The FLCLASS Daily Liquidity Pool is rated “AAAm” by Standard and 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, 2024, the County had $161,071,587 invested in FL PALM Portfolio. The FL PALM Portfolio is rated “AAAm” by Standard and 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 fair 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, 2024, the County had demand deposits of $524,885,533. 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 $570,494 consist of demand deposits of $204,525 and certificates of deposit for $365,969. These demand deposits are secured by the FDIC as individual entity balances do not exceed $250,000. The certificate of deposit balance does not exceed $250,000 and as such, is also secured by FDIC insurance. 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. 51 FINANCIAL SECTION Notes to the Financial Statements Page 882 of 5415 NOTE 2 – CASH AND INVESTMENTS (Continued) CREDIT RISK The County’s investment policy establishes limitations on portfolio composition in order to control the concentration of credit risk. The following maximum limits per sector, are established by policy: Sector Investment Policy Limit U.S. Treasury 100% U.S. Agencies 80% - Maximum 40% per issuer Corporates 25% - Maximum 5% per issuer Certificates of Deposit 30% Repurchase Agreements 20% Commercial Paper 25% State Investment Pools 50% 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, 2024, was 39 days. The weighted average life (WAL) of Florida PRIME at September 30, 2024, was 74 days. The weighted average days to maturity (WAM) of the FL PALM Portfolio was 36 days, while the weighted average life (WAL) was 79 days. The weighted average days to maturity (WAM) of the FLCLASS Liquidity Pool on September 30, 2024, was 30 days, while the weighted average life (WAL) was 83 days. Next interest rate reset dates for floating rate securities are used in the calculation of the respective weighted average days to maturity. The portion of the County’s cash and investments invested in U.S. Government Agencies is detailed as follows, at September 30, 2024: Issuer % of Portfolio Federal Home Loan Bank 22.14% Federal Farm Credit Bank 5.16% Federal Home Loan Mortgage Corporation 12.98% Federal National Mortgage Association 3.28% Federal Agricultural Mortgage Corporation 2.46% Total U.S. Government Agencies 46.02% Reconciliation of cash and investments to the basic financial statements: Primary government: Cash and investments $ 965,335,190 Restricted cash and investments - current 68,090,197 Restricted cash and investments, non current 1,050,393,526 Restricted cash with fiscal agent 132,245,379 Fiduciary funds: Cash and investments 28,067,927 Total $ 2,244,132,219 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. 52 Notes to the Financial Statements FINANCIAL SECTION Page 883 of 5415 NOTE 2 – CASH AND INVESTMENTS (Continued) 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, 2024: 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, 2024, the fair value of the County’s US Treasury Notes and Bills was $170,959,263. US Agency obligations and corporate notes 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, 2024, the fair value of the County’s US Agency obligations was $1,032,718,501 and the fair value of its corporate notes was $19,560,797. NOTE 3 – TRADE RECEIVABLES Trade receivables for Governmental and Business‐type Activities are net of an allowance for doubtful accounts as follows: Trade Receivables Less Allowance for Doubtful Accounts Net Trade Receivables General Fund $ 992,241 $ 498,264 $ 493,977 Bayshore Gateway Community Redevelopment Agency 12,720 12,720 - Grants and Shared Revenue 4,933,726 128,117 4,805,609 Nonmajor Governmental Funds 2,487,677 350,187 2,137,490 Total receivables reported in Governmental Funds 8,426,364 989,288 7,437,076 Total receivables reported in Internal Service Funds 1,637,462 18,562 1,618,900 Total Governmental Activities trade receivables $ 10,063,826 $ 1,007,850 $ 9,055,976 County Water and Sewer $ 22,374,997 $ 196,209 $ 22,178,788 Solid Waste Disposal 1,321,424 13,351 1,308,073 Emergency Medical Services 32,247,689 30,381,736 1,865,953 Nonmajor Enterprise Funds 53,166 14,222 38,944 Total Business-type Activities trade receivables $ 55,997,276 $ 30,605,518 $ 25,391,758 The County has multi and single-family home rehabilitation and homeownership loan programs funded under the Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), Neighborhood Stabilization Program (NSP) and the State Housing Initiatives 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. 53 FINANCIAL SECTION Notes to the Financial Statements Page 884 of 5415 NOTE 4 – LEASE RECEIVABLES The County leases land, building, office space and equipment to third parties. As of September 30, 2024, the County’s lease receivables were valued at $10,419,288 and the deferred inflow of resources associated with these leases that will be recognized as revenue over the term of the leases was $9,456,334. The lease receivables for Governmental and Business-type Activities at September 30, 2024, were as follows: GOVERNMENTAL ACTIVITIES Land leases - annual lease payments totaling $134,539 plus interest at a rate of 2.29%, due dates ranging from January 20, 2025 to December 30, 2048. $ 5,172,274 Building and office space leases - annual lease payments totaling $89,492 plus interest at a rate ranging from 1.26% - 3.67%, due dates ranging from October 28, 2024 to September 24, 2039. 1,108,336 Equipment leases - annual lease payments totaling $97,112 plus interest at a rate of 2.29%, due dates ranging from December 19, 2024 to December 30,2030. 548,642 Total Governmental Activities Lease Receivables $ 6,829,252 BUSINESS-TYPE ACTIVITIES Land leases - annual lease payments totaling $55,493 plus interest at a rate ranging from 0.15% to 3.00%, due dates ranging from October 1, 2024 to March 01, 2062. $ 2,201,250 Building and office space leases - annual lease payments totaling $187,476 plus interest at a rate raning from of 2.29%, to 3.00% due dates ranging from October 1, 2024 to November 01, 2032. 1,388,786 Total Business-type Activities Lease Receivables $ 3,590,036 The payments for the lease receivables are expected to be received in the subsequent years as follows: Governmental Activities Business-Type Activities Fiscal Year Principal Interest Principal Interest 2025 $ 321,143 $ 160,536 $ 242,969 $ 88,116 2026 343,296 152,591 239,944 81,754 2027 369,670 144,070 253,577 75,301 2028 406,717 135,103 251,495 68,727 2029 366,530 125,855 199,226 62,572 2030-2034 1,496,493 518,451 815,648 233,296 2035-2039 2,034,190 302,410 436,741 166,886 2040-2044 1,041,854 91,760 310,267 116,413 2045-2049 449,359 21,362 205,061 88,909 2050-2054 - - 231,341 62,629 2055-2059 - - 260,989 32,981 2060-2064 - - 142,778 4,206 $ 6,829,252 $ 1,652,138 $ 3,590,036 $ 1,081,790 54 Notes to the Financial Statements FINANCIAL SECTION Page 885 of 5415 NOTE 4 - LEASE RECEIVABLES (Continued) The County has one leasing agreement that qualifies to be treated as regulated in accordance with the requirements of GASB Statement No. 87, Leases. The County leases land to third party under this agreement. The land lease is for twenty one years with an option to extend for nine years and annual lease payment of $2,448. The County recognized $2,448 in lease revenue during the current fiscal year related to this lease. As of September 30, 2024, the remaining nominal amount of revenue that will be recognized as revenue over the lease term associated with this lease amounts to $58,752 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 2025 $ 2,448 2026 2,448 2027 2,448 2028 2,448 2029 2,448 2030-2034 12,240 2035-2039 12,240 2040-2044 12,240 2045-2049 9,792 Total $ 58,752 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, 2024 were as follows: Advance To Advance From Governmental Activities: General Fund $ 7,768,100 $ - Disaster Recovery - 22,790,100 Other governmental funds: Community Development 9,264 - Improvement Districts - 74,508 Fire Control Districts - 268,100 Tourist Development 16,700,000 - Economic and Innovation Zones - 7,500,000 County-Wide Capital Improvements 20,000,000 - Amateur Sports Complex - 16,700,000 Other Capital Projects 74,508 9,264 Total Governmental Activities 44,551,872 47,341,972 Business-type Activities: County Water and Sewer 2,790,100 - Total Business-type Activities 2,790,100 - Total Advances $ 47,341,972 $ 47,341,972 55 FINANCIAL SECTION Notes to the Financial Statements Page 886 of 5415 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, 2024 were as follows: Due From Due To Governmental Activities: General Fund $ 586,970 $ 3,915,997 Immokalee Community Redevelopment Agency - 30,794 Grants and Shared Revenue 758,985 3,188,700 Infrastructure Sales Tax 6,743 2,518 Other Governmental Funds: Road Districts 4,014 29,921 Unincorporated Area MSTD 920,555 38,941 Community Development 3 32,966 Water Management and Pollution Control 54,181 7,034 Pelican Bay 69,635 4 Improvement Districts 104,189 330 Fire Control Districts 26,024 446 Lighting District 11,491 - 911 Enhancement Fee - 49,988 Tourist Development 2,192,098 506 State Housing Initiative Partnership 4,158 10 800 MHz IRCP Fund 406,989 - State Court Administration 63,054 600 Conservation Collier 396,478 4,324 Court Information Technology 59,336 - Court Services - 295,580 Court Facilities Fee 74,078 - Other Public Safety Special Revenue Funds 79,076 93,269 Other Special Revenue Funds 22,348 - County-Wide Capital Improvements 8,077 170,515 Parks Improvements 8,828 - Water Management 241,221 719,803 Pelican Bay Capital Improvements 22,255 - Road Construction 2,466,992 - Other Capital Projects 331 48 Total other governmental funds 7,235,411 1,444,285 Business-type Activities: County Water and Sewer $ - $ 119,477 Solid Waste Disposal 185,190 20,213 Emergency Medical Services - 80,800 Other Nonmajor Business-type Funds: Airport Authority - 2,800 Collier Area Transit 22,024 - Total other nonmajor business-type funds 22,024 2,800 Internal Service Funds: Self- Insurance 24,265 1,519 Fleet Management 100 5,385 Information Technology - 7,200 Total internal service funds 24,365 14,104 Total All Funds $ 8,819,688 $ 8,819,688 56 Notes to the Financial Statements FINANCIAL SECTION Page 887 of 5415 NOTE 6 – CAPITAL ASSETS A summary of capital asset activity for the year ended September 30, 2024 is as follows: October 1, 2023 Additions Deductions Transfers and Reclassifications September 30, 2024 Governmental Activities: Capital assets not depreciated: Land and other non-depreciable assets $ 620,499,045 $ 18,042,517 $ (16,256) $ (120,144) $ 638,405,162 Construction in progress - Leases - 454,508 - - 454,508 Construction in progress - SBITA 117,653 147,370 - (117,653) 147,370 Construction in progress 170,105,570 129,461,133 (582,925) (85,910,867) 213,072,911 Total capital assets not depreciated 790,722,268 148,105,528 (599,181) (86,148,664) 852,079,951 Capital assets depreciated and amortized: Buildings 534,957,895 692,035 (24,323) 4,634,394 540,260,001 Infrastructure 1,252,066,406 432,128 (6,600) 61,666,264 1,314,158,198 Improvements other than buildings 443,037,062 6,442,103 (1,688,292) 12,798,361 460,589,234 Machinery and equipment 293,780,216 19,174,624 (9,451,985) 6,520,906 310,023,761 Right-to-use leased land 445,181 - - - 445,181 Right-to-use leased buildings 3,013,232 1,043,800 - - 4,057,032 Right-to-use leased equipment 5,690,304 303,417 (450,769) - 5,542,952 Right-to-use SBITA 11,031,804 12,659,982 (175,775) 117,653 23,633,664 Total capital assets depreciated and amortized 2,544,022,100 40,748,089 (11,797,744) 85,737,578 2,658,710,023 Less accumulated depreciation and amortization: Buildings 282,639,042 18,128,076 (18,648) - 300,748,470 Infrastructure 633,978,066 40,320,082 (6,600) - 674,291,548 Improvements other than buildings 254,809,951 21,602,280 (437,580) (22,646) 275,952,005 Machinery and equipment 219,629,962 23,985,769 (9,245,672) (32,132) 234,337,927 Right-to-use leased land 145,545 38,212 - - 183,757 Right-to-use leased buildings 856,119 458,872 - - 1,314,991 Right-to-use leased equipment 2,038,672 650,415 (351,023) - 2,338,064 Right-to-use SBITA 1,991,724 5,333,081 (175,775) - 7,149,030 Total accumulated depreciation and amortization 1,396,089,081 110,516,787 (10,235,298) (54,778) 1,496,315,792 Total depreciable capital assets, net 1,147,933,019 (69,768,698) (1,562,446) 85,792,356 1,162,394,231 Total Governmental Activities capital assets, net $ 1,938,655,287 $ 78,336,830 $ (2,161,627) $ (356,308) $ 2,014,474,182 Business-type Activities: Capital assets not depreciated: Land and other non-depreciable assets $ 33,544,065 $ 126,240 $ - $ 120,144 $ 33,790,449 Construction in progress - SBITA - 74,209 - - 74,209 Construction in progress 167,609,899 77,998,948 (37,070) (31,042,066) 214,529,711 Total capital assets not depreciated 201,153,964 78,199,397 (37,070) (30,921,922) 248,394,369 Capital assets depreciated and amortized: Buildings 178,911,104 - - 1,790,268 180,701,372 Improvements other than buildings 1,523,297,879 23,183,125 - 27,882,106 1,574,363,110 Machinery and equipment 107,840,611 6,029,640 (3,100,988) 1,660,634 112,429,897 Right-to-use leased buildings 726,978 - - - 726,978 Right-to-use leased equipment 351,286 9,032 - - 360,318 Right-to-use SBITA 520,570 - - - 520,570 Total capital assets depreciated and amortized 1,811,648,428 29,221,797 (3,100,988) 31,333,008 1,869,102,245 Less accumulated depreciation and amortization: Buildings 116,481,772 4,691,753 - - 121,173,525 Improvements other than buildings 725,106,303 48,424,369 - 22,646 773,553,318 Machinery and equipment 71,724,343 8,031,899 (3,027,476) 32,132 76,760,898 Right-to-use leased buildings 270,269 67,706 - - 337,975 Right-to-use leased equipment 110,617 37,346 - - 147,963 Right-to-use SBITA 43,567 74,513 - - 118,080 Total accumulated depreciation and amortization 913,736,871 61,327,586 (3,027,476) 54,778 972,091,759 Total depreciable capital assets, net 897,911,557 (32,105,789) (73,512) 31,278,230 897,010,486 Total Business-type Activities capital assets, net $ 1,099,065,521 $ 46,093,608 $ (110,582) $ 356,308 $ 1,145,404,855 57 FINANCIAL SECTION Notes to the Financial Statements Page 888 of 5415 NOTE 6 – CAPITAL ASSETS (Continued) Schedule of depreciation and amortization for fiscal year 2024: General Government $ 9,454,932 Public Safety 25,151,159 Physical Environment 13,528,633 Transportation 37,876,614 Economic Environment 605,702 Human Services 301,865 Culture and Recreation 17,221,255 Subtotal 104,140,160 Internal Service Funds 6,376,627 Total Governmental Activities $ 110,516,787 Water and Sewer $ 51,775,852 Solid Waste 2,219,154 EMS 2,477,903 Airport Authority 2,641,043 Mass Transit 2,213,634 Total Business-type Activities $ 61,327,586 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, 2024: 000’s Omitted October 1, 2023 Additions Reductions Premium/ Discount Amortized September 30, 2024 Due within one year Governmental Activities: Revenue Bonds Payable $ 152,570 $ - $ (3,990) $ - $ 148,580 $ 4,110 Premiums on Bonds Payable 17,279 - - (912) 16,367 - Direct Placement Loans and Notes 186,559 - (26,751) - 159,808 27,246 Discount on Direct Placement Loan (170) - - 14 (156) - Commercial Paper Loans 2,500 3,000 - - 5,500 - Leases Payable 6,610 1,347 (1,175) - 6,782 1,016 SBITA Liability 7,722 12,060 (4,552) - 15,230 4,480 Self-Insurance Claims 14,074 88,067 (86,482) - 15,659 13,334 Compensated Absences 39,622 17,063 (12,821) - 43,864 15,211 Total $ 426,766 $ 121,537 $ (135,771) $ (898) $ 411,634 $ 65,397 Business-type Activities: Revenue Bonds Payable $ 200,925 $ - $ (2,210) $ - $ 198,715 $ 2,320 Premium on Bonds Payable 32,430 - - (1,500) 30,930 - Direct Placement Loans and Notes 106,030 - (11,763) - 94,267 11,429 Developer Note Payable 70 - - - 70 70 Leases Payable 726 9 (97) - 638 74 SBITA Liability 437 - (56) - 381 62 Landfill Closure Liability 1,447 57 - - 1,504 44 Compensated Absences 4,332 3,352 (3,115) - 4,569 3,655 Total $ 346,397 $ 3,418 $ (17,241) $ (1,500) $ 331,074 $ 17,654 Liabilities, including compensated absences, are liquidated by the individual fund to which the liability is directly associated. 58 Notes to the Financial Statements FINANCIAL SECTION Page 889 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) DESCRIPTIONS OF BONDS, LOANS AND NOTES PAYABLE Bonds, loans and notes payable at September 30, 2024 were composed of the following: GOVERNMENTAL ACTIVITIES Governmental Activities Revenue Bonds $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. $ 57,375,000 $75,100,000 2020A Special Obligation Revenue Bonds, due in annual installments of $165,000 to $6,045,000 through October 1, 2045; interest at 4.00% 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 providing funding for the acquisition, construction and and equipping of various capital improvements and refunding a commercial paper loan. 74,535,000 $24,075,000 2020B Taxable Special Obligation Revenue Bonds, due in annual installments of $2,275,000 to $2,920,000 through October 1, 2029; interest at 2.00% 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 financing the purchase of certain real property. 16,670,000 Total Governmental Activities Revenue Bonds $ 148,580,000 Governmental Activities Direct Placement Loans $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. $ 13,265,000 $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. 32,583,000 $28,060,000 2019 Taxable 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. 23,625,000 $32,865,000 2022A Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,425,000 to $1,540,000 through October 1, 2029; interest at 1.43% 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 refund the Series 2011 Special Obligation Refunding Revenue Bonds. 16,225,000 59 FINANCIAL SECTION Notes to the Financial Statements Page 890 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) $75,560,000 2022B Special Obligation Refunding Revenue Note (Bank Term Loan) due in annual installments of $8,295,000 to $570,000 through October 1, 2035; interest at 1.85% 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 refund the Series 2013 Special Obligation Refunding Revenue Bonds. 74,110,000 Total Governmental Activities Direct Placement Loans $ 159,808,000 Governmental Activities Commercial Paper Loans $5,500,000 Commercial Paper Loan issued by the Florida Local Government Finance Commission Pooled Commercial Paper Program with: $1,000,000 due on June 1, 2027, $1,500,000 due on September 7, 2027, and $3,000,000 due on September 5, 2028; monthly variable interest for the current fiscal year of 4.53% to 4.92%, 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 constructing sidewalk improvements in the Pelican Bay Services District. $ 5,500,000 Total Governmental Activities Commercial Paper Loans $ 5,500,000 Total Governmental Activities Obligations 313,888,000 Unamortized Direct Placement Loan Discount (156,206) Unamortized Bond Premiums 16,367,447 Total Unamortized Bond Premiums and Discounts, net 16,211,241 Governmental Activities Obligations, Net 330,099,241 Less Current Portion of Governmental Activities Obligations (31,356,000) Long-Term Portion of Governmental Activities Obligations, Net $ 298,743,241 BUSINESS-TYPE ACTIVITIES Business-type Activities Revenue Bonds $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 Collier County Water and Sewer District. $ 76,185,000 $128,900,000 2021 Collier County Water and Sewer Revenue Bonds due in annual installments of $2,055,000 to $11,300,000 through July 1, 2046; interest at 4.00% 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 water and wastewater improvements within the Collier County Water and Sewer District. 122,530,000 Total Business-type Activities Revenue Bonds $ 198,715,000 Business-type Activities Direct Placement Loans $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. 18,065,000 60 Notes to the Financial Statements FINANCIAL SECTION Page 891 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) $49,945,000 2023 Taxable Collier County Water and Sewer Revenue Bond (Bank Term Loan) due in annual installments of $270,000 to $7,090,000 through July 1, 2036; interest at 4.15% and collateralized by a lien on and a pledge of net revenues of the Collier County Water and Sewer District. Loan was issued to refund the Series 2016 Collier County Water and Sewer Refunding Revenue Bonds. 49,945,000 $89,982,000 2016 County Water and Sewer District Refunding Revenue Note (Bank Term Loan) 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. $ 26,257,000 Total Business-type Activities Direct Placement Loans $ 94,267,000 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. $ 69,848 Total Business-type Activities Note Payable $ 69,848 Total Business-type Activities Obligations $ 293,051,848 Unamortized Bond Premiums $ 30,930,581 Business-type Activities Obligations, Net $ 323,982,429 Less Current Portion of Business-type Activities Obligations Payable from Unrestricted Assets $ (10,311,751) Less Current Portion of Business-type Activities Obligations Payable from Restricted Assets (3,507,097) Long-Term Portion of Business-type Activities Obligations, Net $ 310,163,581 SUMMARY OF DEBT SERVICE REQUIREMENTS TO MATURITY The total annual debt service requirements to maturity of long-term debt, excluding compensated absences, premiums, discounts and arbitrage rebate liability, are as follows: Governmental Activities Fiscal Direct Placement Loans Year Revenue Bonds and Notes Payable Commercial Paper Loans Totals Principal Interest Principal Interest Principal Interest 2025 $ 4,110,000 $ 5,863,500 $ 27,246,000 $ 3,517,806 $ - $ 990,000 $ 41,727,306 2026 4,235,000 5,734,900 14,309,000 2,869,089 - 990,000 28,137,989 2027 4,365,000 5,601,575 14,603,000 2,544,824 2,500,000 945,000 30,559,399 2028 4,500,000 5,463,275 14,955,000 2,198,749 3,000,000 540,000 30,657,024 2029 4,645,000 5,319,625 15,311,000 1,843,850 - - 27,119,475 2030-34 26,090,000 23,501,825 61,544,000 4,656,614 - - 115,792,439 2035-39 32,490,000 17,026,375 11,840,000 220,057 - - 61,576,432 2040-44 39,600,000 9,793,000 - - - - 49,393,000 2045-49 28,545,000 2,199,900 - - - - 30,744,900 Total $ 148,580,000 $ 80,503,975 $ 159,808,000 $ 17,850,989 $ 5,500,000 $ 3,465,000 $ 415,707,964 61 FINANCIAL SECTION Notes to the Financial Statements Page 892 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) Business-type Activities Fiscal Direct Placement Loans Developer Year Revenue Bonds and Notes Payable Note Payable Totals Principal Interest Principal Interest Principal Interest 2025 $ 2,320,000 $ 7,881,681 $ 11,429,000 $ 2,980,711 $ 69,848 $ - $ 24,681,240 2026 2,435,000 7,765,681 10,103,000 2,752,602 - - 23,056,283 2027 2,560,000 7,643,931 8,941,000 2,547,811 - - 21,692,742 2028 2,685,000 7,515,931 8,683,000 2,357,012 - - 21,240,943 2029 2,820,000 7,381,681 11,046,000 2,170,073 - - 23,417,754 2030-34 40,390,000 32,544,008 30,170,000 6,740,637 - - 109,844,645 2035-39 74,965,000 23,185,100 13,895,000 870,877 - - 112,915,977 2040-44 48,375,000 10,389,800 - - - - 58,764,800 2045-49 22,165,000 1,338,600 - - - - 23,503,600 Total $ 198,715,000 $ 105,646,413 $ 94,267,000 $ 20,419,723 $ 69,848 $ - $ 419,117,984 CURRENT YEAR FINANCING ACTIVITIES On November 9, 2023, Collier County issued a $3,000,000 commercial paper loan through the Florida Local Government Finance Commission’s Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services Municipal Services Taxing and Benefit Unit and has a final maturity date of September 5, 2028. The loan bears monthly variable interest and is collateralized by all legally available non-ad valorem revenues as defined in the loan agreement. DEFEASED DEBT The County has defeased certain outstanding bonds by placing the proceeds of new debt in an irrevocable trust to provide for all future debt service payment on the defeased bonds. Accordingly, the trust account and the defeased bonds are not included in the County’s financial statements. As of September 30, 2024, the following issue was considered defeased: Original Debt Defeased Defeased Bonds Outstanding 2016 County Water and Sewer Refunding Revenue Bonds $48,105,000 $48,105,000 RESTRICTIVE COVENANTS According to County resolutions authorizing the issuance of the Series 2020A and 2020B Taxable Special Obligation Refunding Revenue Bonds and Series 2017, 2019 and 2022A and 2022B Special Obligation Refunding Revenue Notes (bank term loan), the County has covenanted, subject to certain restrictions and limitations, to appropriate in its annual budget, by amendment if necessary, from 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, 2024 was $172,373,672. According to County resolutions authorizing the issuance of the Series 2014 Gas Tax Refunding Revenue Bond (bank term loan), the issue is payable from and secured by a lien on gas tax revenues. Total pledged gas tax revenue collections for the fiscal year ended September 30, 2024 were $25,807,582. 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, 2024 were $48,636,665. The covenants of the loan agreement authorizing the Florida Local Government Finance Commission pooled commercial paper loans include appropriation in the annual budget, by amendment, if necessary, of amounts of non-ad valorem revenues or other legally available funds sufficient to satisfy the loan repayments. 62 Notes to the Financial Statements FINANCIAL SECTION Page 893 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) The County Water and Sewer District (District) has pledged future water and sewer customer revenues, net of certain operating expenses, to repay $266,725,000 in Series 2018, 2019, 2021 and 2023 senior lien 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, 2046, 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 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; 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. Fiscal year 2024 pledged revenues, net of operating expenses (excluding depreciation and amortization), were $108,042,222, and $125,391,407 when system development fees were included. Principal and interest paid on the bonds during fiscal year 2024 totaled $16,381,664, providing coverage of 660% and 765%, 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, 2024. In addition, the District has a note outstanding in the amount of $26,257,000 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. The District’s note was in compliance with these covenants for the year ended September 30, 2024. LEGAL DEBT MARGIN The Constitution of the State of Florida and the Florida Statutes set no legal debt limit. LEASES PAYABLE The County is a lessee for noncancellable leases of land, building, office space and equipment. At September 30, 2024, the County’s lease payable of $7,420,630 was composed of the following: GOVERNMENTAL ACTIVITIES Leases with options to purchase equipment - annual payments totaling $392 plus interest at a rate of 2.93%, due date of June 24, 2026. $ 720 Land leases - annual payments totaling $22,255 plus interest at rates ranging from 1.51% to 2.11%, due dates ranging from October 1, 2024 to July 1, 2051. 264,012 Building and office space leases - annual payments totaling $448,700 plus interest at rates ranging from 0.79% to 4.82%, due dates ranging from October 1, 2024 to December 1, 2039. 2,978,445 Equipment and vehicle leases - annual payments totaling $544,282 plus interest at rates ranging from 0.16% to 4.88%, due dates ranging from October 1, 2024 to September 1, 2033. 3,539,126 Total Governmental Activities Leases Payable $ 6,782,303 63 FINANCIAL SECTION Notes to the Financial Statements Page 894 of 5415 NOTE 7 – LONG-TERM DEBT (Continued) BUSINESS-TYPE ACTIVITIES Building and office space leases - annual payments totaling $69,296 plus interest at rates ranging from 1.59% to 1.93%, due dates ranging from October 1, 2024 to September 1, 2034. $ 412,639 Equipment leases - annual payments totaling $4,835, plus interest at rates ranging from 1.55% to 4.17%, due dates ranging from October 1, 2024 to February 1, 2048. 225,688 Total Business-type Activities Leases Payable $ 638,327 The future principal and interest Lease payments as of September 30, 2024, were as follows: Governmental Activities Business-type Activities Fiscal Year Principal Interest Principal Interest 2025 $ 1,015,629 $ 120,853 $ 74,131 $ 16,026 2026 879,834 97,648 74,712 14,689 2027 825,476 77,846 45,640 13,500 2028 739,855 60,380 36,487 12,742 2029 548,118 48,341 35,714 11,941 2030-2034 2,056,740 134,939 186,987 47,634 2035-2039 665,654 39,911 43,186 33,609 2040-2044 49,053 402 71,396 22,037 2045-2049 1,359 141 70,074 4,987 2050-2054 585 15 - - Total $ 6,782,303 $ 580,476 $ 638,327 $ 177,165 SBITA LIABILITY The County is a customer for noncancellable arrangements for software, software as a service and other intangible right of use assets. At September 30, 2024, the County’s SBITA liability of $15,610,977 was composed of the following: GOVERNMENTAL ACTIVITIES SBITA Arrangements - annual payments totaling $4,480,326, plus interest with rates ranging from 0.34% to 5.12%, due dates ranging from October 1, 2024 to August 24, 2033. $ 15,230,116 Total Governmental Activities SBITA Liability $ 15,230,116 BUSINESS-TYPE ACTIVITIES SBITA Arrangements - annual payments totaling $62,246, plus interest at a rate of 4.18%, due dates ranging from February 28, 2024 to February 28, 2029. $ 380,861 Total Business-type Activities SBITA Liability $ 380,861 The future principal and interest SBITA payments as of September 30, 2024, were as follows: Governmental Activities Business-type Activities Fiscal Year Principal Interest Principal Interest 2025 $ 4,480,326 $ 461,227 $ 62,246 $ 13,826 2026 3,314,853 321,152 68,756 11,120 2027 2,292,318 224,007 75,734 8,136 2028 1,560,414 141,171 82,925 5,139 2029 639,742 114,652 91,200 1,266 2030-2034 2,942,463 197,639 - - Total $ 15,230,116 $ 1,459,848 $ 380,861 $ 39,487 64 Notes to the Financial Statements FINANCIAL SECTION Page 895 of 5415 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, has extended any additional commitments for debt service payments of the bonds beyond the collateral and the payments from the private-sector entities on the underlying mortgage or promissory notes and maintenance of the tax-exempt status of the conduit debt obligation and as such are not reported as liabilities in the accompanying financial statements. As of September 30, 2024, the outstanding principal amount payable on all component unit conduit debt was $803,305,272 and is made up of the following: Industrial development revenue bonds $ 536,466,298 Housing finance revenue bonds 76,454,392 Health facilities revenue bonds 180,768,492 Educational facilities revenue bonds 9,616,090 Total $ 803,305,272 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. An annual comprehensive 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 $56,321,786 for both the FRS Pension Plan and HIS Plan for the year ended September 30, 2024. 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. 65 FINANCIAL SECTION Notes to the Financial Statements Page 896 of 5415 NOTE 9 – DEFINED BENEFIT PENSION PLANS (Continued) 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 55 or at any age after 25 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 5 percent 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 96 months after electing to participate. Certain instructional personnel may extend their participation for an additional 24 months beyond their initial 96-month participation period. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. BENEFITS PROVIDED Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the 5 highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the 8 highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. The following chart shows the percentage value for each year of service credit earned: % Value Class, Initial Enrollment and Retirement Age/Years of Service: (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. 66 Notes to the Financial Statements FINANCIAL SECTION Page 897 of 5415 NOTE 9 – DEFINED BENEFIT PENSION PLANS (Continued) 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, 2023 through June 30, 2024 and from July 1, 2024 through September 30, 2024, respectively, were as follows: Regular employees – 13.57% and 13.63%; Special Risk – Regular-32.67% and 32.79%; County Elected Officials – 58.68% and 58.68%; Senior Management Services – 34.52% and 34.52%; and DROP participants – 21.13% and 21.13%. The County’s contributions to the FRS Plan were $47,713,620 for the year ended September 30, 2024. PENSION COSTS At September 30, 2024, the County reported a liability of $322,644,100 for its proportionate share of the FRS Plan’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2024. 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, 2023, through June 30, 2024, relative to the total employer contributions received from all of FRS’s participating employers. At June 30, 2024, the County’s proportion was 0.834035%, which was an increase of 0.005536% from its proportion measured as of June 30, 2023. For the year ended September 30, 2024, the County recognized pension expense of $50,704,713 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 Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ 32,595,717 $ - Changes in Actuarial Assumptions 44,221,325 - Net Difference Between Projected and Actual Earnings on Pension Plan Investments - 21,444,605 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 15,997,611 7,542,232 County Contributions Subsequent to the Measurement Date 11,756,346 - Total $ 104,570,999 $ 28,986,837 Deferred outflows of resources related to pensions of $11,756,346, 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, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as increases or decreases in pension expense as follows: Year Ending September 30 Amount 2025 $ (3,057,843) 2026 55,735,104 2027 6,911,723 2028 1,214,001 2029 3,024,831 ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.50%, including inflation Investment Rate of Return 6.70%, Net of Pension Plan investment expense 67 FINANCIAL SECTION Notes to the Financial Statements Page 898 of 5415 NOTE 9 – DEFINED BENEFIT PENSION PLANS (Continued) Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2021. The actuarial assumptions used in the July 1, 2024 valuation were based on the results of an actuarial experience study for the period July 1, 2018, through June 30, 2023. 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. 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% 3.3% 3.3% 1.1% Fixed income 29.0% 5.7% 5.6% 3.9% Global equity 45.0% 8.6% 7.0% 18.2% Real estate (property) 12.0% 8.1% 6.8% 16.6% Private equity 11.0% 12.4% 8.8% 28.4% Strategic investments 2.0% 6.6% 6.2% 8.7% Totals 100.0% Assumed Inflation - Mean 2.4% 1.5% DISCOUNT RATE The discount rate used to measure the total pension liability for the FRS Plan in fiscal year 2024 was 6.70% which was the same as in fiscal year 2023. 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: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate FRS Plan Discount Rate 5.70% 6.70% 7.70% County’s Proportionate Share of the FRS Plan Net Pension Liability $567,519,677 $322,644,100 $117,508,868 PENSION PLAN FIDUCIARY NET POSITION Detailed information about the FRS Plan’s fiduciary net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. 68 Notes to the Financial Statements FINANCIAL SECTION Page 899 of 5415 NOTE 9 – DEFINED BENEFIT PENSION PLANS (Continued) 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, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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. 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 2.00% HIS Plan subsidy for the periods October 1, 2023 through June 30, 2024 and a 2.00% HIS Plan subsidy from July 1, 2024 through September 30, 2024, 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 $6,284,808 for the year ended September 30, 2024. PENSION COSTS At September 30, 2024, the County reported a liability of $110,162,602 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2024. The projected HIS benefits to be paid out in the next fiscal year exceed the fiduciary net position of the HIS Plan as of the end of the fiscal year. As such, the County has reported its proportion of the excess of the projected benefit payment over the fiduciary net position as a current liability. 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, 2023, through June 30, 2024, relative to the total employer contributions received from all participating employers. At June 30, 2024, the County’s proportion was 0.734370%, which was a decrease of 0.013616% from its proportion measured as of June 30, 2024. For the year ended September 30, 2024, the County recognized pension expense of $5,617,073 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ 1,063,695 $ 211,529 Changes in Actuarial Assumptions 1,949,619 13,041,839 Net Difference Between Projected and Actual Earnings on HIS Program Investments - 39,841 Changes in Proportion and Differences Between County Contributions and Proportionate Share of Contributions 5,660,694 2,675,968 County Contributions Subsequent to the Measurement Date 1,536,736 - Total $ 10,210,744 $ 15,969,177 69 FINANCIAL SECTION Notes to the Financial Statements Page 900 of 5415 NOTE 9 – DEFINED BENEFIT PENSION PLANS (Continued) Deferred outflows of resources related to pensions of $1,536,736, 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, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as increases or decreases in pension expense as follows: Year Ending September 30 Amount 2025 $ (868,515) 2026 (1,246,573) 2027 (2,149,303) 2028 (1,397,189) 2029 (1,206,809) Thereafter (426,780) ACTUARIAL ASSUMPTIONS The total pension liability in the July 1, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% per year Salary Increases 3.50%, including inflation Municipal Bond Rate 3.93% Mortality rates were based on the PUB-2010 base table projected generationally with Scale MP-2021. The actuarial assumptions used in the July 1, 2024 valuation were based on the results of an actuarial experience study for the period July 1, 2018, through June 30, 2023. DISCOUNT RATE The discount rate used to measure the total pension liability for HIS plan increased from 3.65% in fiscal year 2023 to 3.93% in fiscal year 2024. 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: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate HIS Plan Discount Rate 2.93% 3.93% 4.93% County’s Proportionate Share of the HIS Plan Net Pension Liability $125,405,964 $110,162,602 $97,508,147 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 Annual Comprehensive Financial Report. That report may be obtained through the Florida Department of Management Services website at www.dms.myflorida.com. 70 Notes to the Financial Statements FINANCIAL SECTION Page 901 of 5415 NOTE 9 - DEFINED BENEFIT PENSION PLANS (Continued) 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 $ 322,644,100 $ 110,162,602 $ 432,806,702 Deferred outflows of resources related to pensions 104,570,999 10,210,744 114,781,743 Deferred inflows of resources related to pensions 28,986,837 15,969,177 44,956,014 Pension expense 50,704,713 5,617,073 56,321,786 Liabilities associated with the Florida Retirement System and Retiree Health Insurance Subsidy Program in the governmental funds are primarily liquidated from the General Fund, Unincorporated Area MSTD and the Community Development funds. 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 Annual Comprehensive 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, 2023 to June 30, 2024 and .06% of payroll from July 1, 2024 to June 30, 2025 in addition to forfeited benefits of plan members. The County’s Investment Plan pension expense totaled $12,008,678 for the year ended September 30, 2024. 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, 2024, 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. 71 FINANCIAL SECTION Notes to the Financial Statements Page 902 of 5415 NOTE 11 – TRANSFERS Transfers between funds were used to (1) move revenues from the fund that statute or budget requires they be collected into the fund that statute or budget requires they be expended from, (2) account for payments in lieu of taxes not based on an approximation of services rendered, (3) move receipts restricted to debt service to the debt service fund as payments become due and (4) 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 of note include the General Fund transfer of $27.6 million to the Road Districts fund and $29.4 million to the Emergency Medical Services fund to support operations. The General Fund also transferred $52.9 million to the County-Wide Capital Improvements fund to fund various projects such as $6 million for upgrades to the 800 MHz system, $1.4 million for re-roofing projects, $2.5 million for the Golden Gate Golf Course and $1 million for the County’s financial software upgrade. The Road Construction fund transferred $11.3 million to the Gas Tax Revenue Bonds fund for debt service payments. The Unincorporated Area MSTD transferred $13.6 million to the Road Construction fund to help fund various bridge and road resurfacing projects. Conservation Collier transferred $29.6 million to the General Fund to offset a portion of the impact of the roll back millage rate. Transfers for the year ended September 30, 2024 were as follows: Transfers from Fund Transfers to Fund Amount Governmental Activities: General Fund Grants and Shared Revenue $ 1,076,342 Disaster Recovery 2,000,000 Nonmajor Governmental Funds 115,935,515 Emergency Medical Services 29,392,300 Nonmajor Business-type 5,808,702 Internal Service Funds 5,888,500 Infrastructure Sales Tax Grants and Shared Revenue 338,631 Nonmajor Governmental Funds 1,213,335 Nonmajor Governmental Funds General Fund 39,661,141 Grants and Shared Revenue 6,299,693 Nonmajor Governmental Funds 64,551,423 Internal Service Funds 2,013,400 Business-type Activities: County Water and Sewer General Fund 10,614,020 Internal Service Funds 1,682,300 Solid Waste Disposal General Fund 742,426 Internal Service Funds 306,100 Emergency Medical Services Internal Service Funds 8,300 Nonmajor Business-type General Fund 250,000 Internal Service Funds 40,700 Total Transfers $ 287,822,828 72 Notes to the Financial Statements FINANCIAL SECTION Page 903 of 5415 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 community development: Building and permitting fees restricted for licensing, permitting and inspection services. Restricted for tourist development: Tourist development tax proceeds are restricted for tourist related activities. Restricted for Conservation Collier: Balances generated by the 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 infrastructure sales tax capital projects: Infrastructure sales tax proceeds are restricted for infrastructural capital improvements. Restricted for grants: State and federal government grant monies restricted for grant related purposes. 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 court programs: Balances are restricted for court programs. Restricted for public safety: Balances are restricted for public safety programs. 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 73 FINANCIAL SECTION Notes to the Financial Statements Page 904 of 5415 NOTE 12 – NET POSITION/FUND BALANCE CLASSIFICATION (Continued) 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. A detailed schedule of fund balances at September 30, 2024 is as follows: General Fund Bayshore Gateway Community Redevelopment Agency Immokalee Community Redevelopment Agency Grants and Shared Revenue Disaster Recovery Infrastructure Sales Tax Other Governmental Funds Total Governmental Funds Nonspendable: Endowments $ - $ - $ - $ - $ - $ - $ 5,522,800 $ 5,522,800 Inventory 1,175,502 - - - - - 1,813,140 2,988,642 Advances to other funds 7,768,100 - - - - - - 7,768,100 Notes 1,483,909 - - - - - - 1,483,909 Prepaid costs 301,759 - - 7,969 - - 114,701 424,429 Total nonspendable fund balance 10,729,270 - - 7,969 - - 7,450,641 18,187,880 Restricted for: Community redevelopment - 17,137,351 4,162,918 - - - - 21,300,269 Federal and state grants 553,414 - - 17,068,505 - - 12,706,390 30,328,309 Infrastructure sales tax capital projects - - - - - 343,470,879 - 343,470,879 Bond covenants or debt service - - - - - - 5,938,930 5,938,930 Parks and recreation 11,378,141 11,378,141 Parks growth related capital expansion - - - - - - 63,473,494 63,473,494 Transportation capital projects - - - - - - 87,671,414 87,671,414 Transportation growth related capital - - - - - - 147,432,830 147,432,830 Community development - - - - - - 32,726,499 32,726,499 Tourist development - - - - - - 168,721,039 168,721,039 Conservation Collier - - - - - - 66,478,819 66,478,819 Emergency 911 growth related capital expansion - - - - - - 1,444,369 1,444,369 Public safety - - - - - - 13,344,038 13,344,038 General government facilities growth related capital expansion - - - - - - 3,641,765 3,641,765 Water management 16,748,404 16,748,404 Libraries - - - - - - 535,249 535,249 Court functions - - - - - - 12,035,071 12,035,071 Public records modernization - - - - - - 8,079,609 8,079,609 Other purposes - - - - - - 3,558,377 3,558,377 Total restricted fund balance 553,414 17,137,351 4,162,918 17,068,505 - 343,470,879 655,914,438 1,038,307,505 Committed for: Special districts - - - - - - 50,299,731 50,299,731 Natural resource management - - - - - - 6,020,107 6,020,107 Utility regulation - - - - - - 985,107 985,107 Economic development - - - - - - 3,478,193 3,478,193 Other purposes - - - - - - 3,749,233 3,749,233 Total committed fund balance - - - - - - 64,532,371 64,532,371 Assigned for: Parks and recreation - - - - - - 19,978,613 19,978,613 General building & improvements - - - - - - 128,928,707 128,928,707 Water management 3,120,845 - - - - - 40,424,928 43,545,773 Subsequent year budget 44,241,100 - - - - - - 44,241,100 Other purposes 2,660,143 - - - - - 12,256,614 14,916,757 Total assigned fund balance 50,022,088 - - - - - 201,588,862 251,610,950 Unassigned: 133,338,373 - - - (14,650,435) - (5,217,708) 113,470,230 Total Fund Balances $ 194,643,145 $ 17,137,351 $ 4,162,918 $ 17,076,474 $ (14,650,435) $ 343,470,879 $ 924,268,604 $ 1,486,108,936 74 Notes to the Financial Statements FINANCIAL SECTION Page 905 of 5415 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 County’s Coverage Excess Carrier’s Coverage Property and casualty claims $100,000 ‐ $500,000 $500,000 - $75,000,000 ($250,000 named storm deductible; 5% deductible of reported values per damaged building; no deductible cap) Auto liability claims $300,000 $300,000 - $5,000,000 Employee health claims $750,000 $750,000 - Unlimited Workers’ compensation claims $600,000 $600,000 - 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, 2024 the operating departments were charged $58,779,513 for workers’ compensation, health and property and casualty self-insurance programs. The claims loss reserve for workers’ compensation, health and property and casualty of $11,348,334 reported at September 30, 2024 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 3.0%. 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 $9,023,434 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 $1,000,000 of every claim. Re-insurance is provided through a third party insurer for all claims exceeding $1,00,000 up to $18,000,000. 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 2024, there was one covered individual who had higher deductible amounts because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual was for claims exceeding $700,000. 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 $4,311,000 reported at September 30, 2024 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. 75 FINANCIAL SECTION Notes to the Financial Statements Page 906 of 5415 NOTE 13 – RISK MANAGEMENT (Continued) CHANGES IN SELF-INSURANCE CLAIMS PAYABLE Changes in the self-insurance claims payable for fiscal years 2023 and 2024 were as follows for the County and Sheriff self- insurance programs: Property and Group Workers’ Casualty Health Compensation Total Balance at September 30, 2022 $ 1,331,173 $ 9,449,000 $ 1,102,873 $ 11,883,046 Current year claims incurred and changes in estimates 847,107 77,153,658 424,579 78,425,344 Claim payments (657,898) (75,058,658) (518,332) (76,234,888) Balance at September 30, 2023 1,520,382 11,544,000 1,009,120 14,073,502 Current year claims incurred and changes in estimates 1,249,558 86,247,878 569,797 88,067,233 Claim payments (1,235,352) (84,591,878) (654,171) (86,481,401) Balance at September 30, 2024 $ 1,534,588 $ 13,200,000 $ 924,746 $ 15,659,334 NOTE 14 – LANDFILL LIABILITY On May 1, 1995, the County entered into a landfill operating agreement with a third party for the County’s landfill operations. Under the contract, the third party is responsible for the daily operations, regulatory compliance, 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 changes due to inflation, changes in contract terms, 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 a 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 24 retirees. The Tax Collector offers a subsidy of 100% of 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 3 retirees. The County’s OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. 76 Notes to the Financial Statements FINANCIAL SECTION Page 907 of 5415 NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS (Continued) PARTICIPANT DATA As of September 30, 2024, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 60 Active employees 2,526 Total employees 2,586 TOTAL OPEB LIABILITY The County’s total OPEB liability of $11,854,815 was measured as of September 30, 2024 and was determined by an actuarial valuation as of October 1, 2024. The following table shows the changes in the County’s total OPEB liability for the year ended September 30, 2024. Total OPEB Liability Balance, as of October 1, 2023 $ 9,037,961 Changes: Service cost 433,482 Interest on total OPEB liability 375,346 Changes in assumptions or other inputs 2,596,573 Benefit payments (588,547) Net changes 2,816,854 Balance, as of September 30, 2024 $ 11,854,815 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: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate OPEB Plan Discount Rate 2.81% 3.81% 4.81% Total OPEB Liability $ 12,846,077 $ 11,854,815 $ 10,961,299 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: Description 1% Decrease in Healthcare Cost Trend Rate Healthcare Cost Trend Rate 1% Increase in Healthcare Cost Trend Rate Healthcare Cost Trend Rate 4.00% 5.00% 6.00% Total OPEB Liability $ 10,744,491 $ 11,854,815 $ 13,144,961 77 FINANCIAL SECTION Notes to the Financial Statements Page 908 of 5415 NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS (Continued) DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2024, the County’s OPEB expense was $533,307. In addition, the County reported deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ 2,106,759 $ 205,590 Changes in assumptions 603,557 873,026 Total $ 2,710,316 $ 1,078,616 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized over 7.33 years as increases or decreases in OPEB expense as follows: Year Ending September 30 Amount 2025 $ (582) 2026 21,002 2027 284,201 2028 444,707 2029 411,233 Thereafter 471,139 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 3.81% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 6.5%, grading down to 5% over 6 years Salary increase 3% New employees None The discount rate was changed from 4.09% to 3.81% based on the 20 year AA municipal bond rate. Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021. Since the most recent valuation, the following changes have been made: • The discount rate was changed from 4.09% to 3.81%. • The healthcare cost trend rate changed to reflect an initial trend of 6.5% grading down to 5.0% over a six-year period. 78 Notes to the Financial Statements FINANCIAL SECTION Page 909 of 5415 NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS (Continued) 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. 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 9% of retirees receive the subsidy. The Sheriff’s OPEB Plan is currently being funded on a pay as you go basis. No trust fund has been established for the plan. The plan does not issue a separate financial report. PARTICIPANT DATA As of September 30, 2024, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 162 Active employees 1,136 Total employees 1,298 TOTAL OPEB LIABILITY The Sheriff’s total OPEB liability of $47,121,910 was measured as of September 30, 2024 and was determined by an actuarial valuation as of October 1, 2024. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2024. Total OPEB Liability Balance, as of October 1, 2023 $ 37,627,575 Changes: Service cost 838,265 Interest on total OPEB liability 1,525,269 Differences between expected and actual experience 6,781,811 Changes in assumptions or other inputs 2,695,381 Benefit payments (2,346,391) Net changes 9,494,335 Balance, as of September 30, 2024 $ 47,121,910 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: Description 1% Decrease in Discount Rate Current Discount Rate 1% Increase in Discount Rate OPEB Plan Discount Rate 2.81% 3.81% 4.81% Total OPEB Liability $ 51,244,616 $ 47,121,910 $ 43,498,520 79 FINANCIAL SECTION Notes to the Financial Statements Page 910 of 5415 NOTE 15 - OTHER POSTEMPLOYMENT BENEFITS (Continued) 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: Description 1% Decrease in Healthcare Cost Trend Rate Healthcare Cost Trend Rate 1% Increase in Healthcare Cost Trend Rate Healthcare Cost Trend Rate 6.00% 7.00% 8.00% Total OPEB Liability $ 43,332,534 $ 47,121,910 $ 51,471,215 DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended September 30, 2024, the Sheriff’s OPEB expense was $5,403,349. In addition, the Sheriff reported deferred outflows of resources and deferred inflows of resources from the following sources: Description Deferred Outflows of Resources Deferred Inflows of Resources Differences Between Expected and Actual Economic Experience $ 21,848,121 $ 4,090 Changes in assumptions 3,972,578 4,732,162 Total $ 25,820,699 $ 4,736,252 Amounts reported as deferred inflows and outflows of resources related to OPEB will be recognized over 5.69 years as an increase in OPEB expense: Year Ending September 30 Deferred Outflows of Resources 2025 $ 4,712,673 2026 4,583,698 2027 4,267,583 2028 3,416,417 2029 2,954,819 Thereafter 1,149,257 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 3.81% (Based on the 20 year AA municipal bond rate) Healthcare cost trend rate 7.0% Salary increase 3.0% New employees None Mortality rates were based on the Pri-2012 Mortality Fully Generational using Projection Scale MP-2021 80 Notes to the Financial Statements FINANCIAL SECTION Page 911 of 5415 NOTE 15 – OTHER POSTEMPLOYMENT BENEFITS (Continued) Since the most recent valuation, the following changes have been made: • The discount rate was changed from 4.09% to 3.81%. • The health care claim cost assumption has been updated to reflect experience through August 31, 2024. • The health care trend assumption has been updated from 6.5% grading down to 5.0% over six years to 7.0% grading down to 5.0% over eight years. • Benefits for current Medicare eligible retirees enrolled in the health plans are being valued at their current contribution rates. 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 $ 11,854,815 $ 47,121,910 $ 58,976,725 Deferred outflows of resources related to OPEB 2,710,316 25,820,699 28,531,015 Deferred inflows of resources related to OPEB 1,078,616 4,736,252 5,814,868 OPEB expense 533,307 5,403,349 5,936,656 Liabilities associated with the County and Sheriff’s OPEB plan in the governmental funds are primarily liquidated from the General Fund, Unincorporated Area MSTD and the Community Development funds. 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 $3,383,669 as of September 30, 2024. HURRICANE IRMA On September 10, 2017, Category 3 Hurricane Irma made landfall in Collier County. The primary impacts of Hurricane Irma were widespread power outages and debris, coastal flooding and beach erosion. The County has spent approximately $114 million on recovery efforts and has budgeted an additional $1 million in the 2024 fiscal year. The County did not recognize any revenue from the Federal Emergency Management Agency (FEMA) during fiscal year 2024. As of September 30, 2024, the County had $5,309,973 in outstanding receivables related to FEMA claims and continues to expect reimbursements from FEMA as projects close out over the next few years. HURRICANE IAN On September 28, 2022, Hurricane Ian made landfall just north of Collier County as a Category 4 storm, bringing significant storm surge to the coastal areas. The County has spent approximately $84.8 million on recovery efforts and has budgeted an additional $20 million in the 2025 fiscal year. In 2024, the County recognized $101,590 in revenue from FEMA, and $8.4 million in insurance reimbursements. At the end of 2024, the County had $12,407,022 in outstanding receivables related to FEMA claims and expects substantial reimbursements from FEMA and insurance in the years to come. 81 FINANCIAL SECTION Notes to the Financial Statements Page 912 of 5415 NOTE 16 – SIGNIFICANT CONTINGENCIES (Continued) HURRICANE HELENE On September 26, 2024, Hurricane Helene made landfall in the Big Bend area of the Florida Gulf Coast as a Category 4 storm, bringing significant storm surge to coastal Collier County. The county spent approximately $430,000 on recovery in the 2024 fiscal year. The total estimated recovery efforts are anticipated to be just over $7 million over the next few fiscal years, with substantial reimbursement from FEMA and insurance claims expected. NOTE 17 – SIGNIFICANT COMMITMENTS Collier County has active construction projects as of September 30, 2024. The projects include road construction, governmental facilities and utilities capital improvements. At year end, the County’s significant commitments with contractors include the following: Construction Category Commitments Governmental Activities: Grants and Shared Revenue Transportation $ 9,490,423 Disaster Recovery Culture and Recreation 884,508 Infrastructure Sales Tax General Government 7,763,744 Public Safety 8,008,734 Physical Environment 610,704 Culture and Recreation 1,205,556 Other Governmental Funds Public Safety 872,603 Physical Environment 11,865,246 Transportation 71,178,995 Culture and Recreation 3,381,973 Business-type Activities: Water and Sewer Utilities 96,678,118 Other Enterprise Funds Airport Authority 2,337,862 Total $ 214,278,466 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 construction commitments. Collier County had the following significant individual encumbrances as of September 30, 2024: Encumbrance Category Commitments Governmental Activities: Grants and Shared Revenue Physical Environment $ 287,393 Transportation 2,199,558 Economic Environment 3,797,679 Human Services 569,783 Disaster Recovery General Government 1,344,069 Physical Environment 2,551,584 Infrastructure Sales Tax General Government 2,838,206 Public Safety 2,021,283 Transportation 5,649,511 Human Services 880,821 Other Governmental Funds General Government 6,688,113 Public Safety 2,529,281 Physical Environment 8,765,838 Transportation 13,290,144 Economic Environment 5,967,311 Culture and Recreation 2,798,228 Business-type Activities: Water and Sewer Utilities 43,275,685 Emergency Medical Services Emergency Medical Services 5,369,264 Solid Waste Landfill Services 7,688,336 Other Enterprise Funds Collier Area Transit 4,002,897 Internal Service Funds Motor Pool Capital Recovery 1,239,063 Total $ 123,754,047 82 Notes to the Financial Statements FINANCIAL SECTION Page 913 of 5415 NOTE 18 – SUBSEQUENT EVENTS HURRICANE MILTON On October 9, 2024, Hurricane Milton made landfall as a Category 3 storm just over 100 miles to the north of Collier County in Siesta Key, Florida. Hurricane Milton brought significant storm surge to the coastal areas and widespread power outages throughout the County. The estimated financial impact to the County is $15.7 million for fiscal years 2025 and beyond. Insurance reimbursements and Federal Emergency Management Agency assistance is expected to cover the majority of expenditures. NOTE 19 – FUND DEFICITS The following funds had a fund balance deficit at September 30, 2024: Fund Amount Disaster Recovery $ (14,650,435) Amateur Sports Complex (5,216,253) $ (19,866,688) The fund balance deficit in the Disaster Recovery fund is the result of disaster recovery expenditures being made before insurance proceeds and FEMA reimbursement revenues are able to be recognized. Advances from the County Water and Sewer fund, and other governmental funds, were made during a prior fiscal year to provide sufficient cash flow. The Disaster Recovery fund anticipates repaying the remaining advance in the next few years as additional insurance proceeds and FEMA reimbursements are received. The fund balance deficit in the Amateur Sports Complex fund is the result of advances from other governmental funds made in prior years to partially fund construction of the Paradise Coast Sports Complex construction. County management began repayment in this fiscal year and anticipates that the remaining advance will be repaid with future years’ tourist tax revenue. 83 FINANCIAL SECTION Notes to the Financial Statements Page 914 of 5415 Page 915 of 5415 REQUIRED SUPPLEMENTARY INFORMATION Page 916 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF THE COUNTY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2024 2023 2022 2021 2020 County’s Proportion of the Net Pension Liability 0.834035360% 0.828499167% 0.785103420% 0.770303194% 0.794941674% County’s Proportionate Share of the Net Pension Liability $ 322,644,100 $ 330,130,697 $ 292,121,565 $ 58,187,652 $ 344,539,437 County’s Covered Payroll *$ 311,112,807 $ 297,384,952 $ 252,964,206 $ 241,529,826 $ 234,174,659 County’s Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 103.71% 111.01% 115.48% 24.09% 147.13% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 83.70% 82.38% 82.89% 96.40% 78.85% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date, restated for periods 2015 to 2017 pursuant to GASB No. 82, Pension Issues. SCHEDULE OF COUNTY CONTRIBUTIONS FLORIDA RETIREMENT SYSTEM PENSION PLAN Last Ten Fiscal Years 2024 2023 2022 2021 2020 Contractually Required Contribution $ 47,713,620 $ 41,265,309 $ 35,022,631 $ 30,034,061 $ 27,741,964 Contributions in Relation to the Contractually Required Contribution (47,713,620) (41,265,309) (35,022,631) (30,034,061) (27,741,964) Contribution Deficiency (Excess)$ - $ - $ - $ - $ - County’s Covered Payroll - Fiscal Year *$ 314,378,569 $ 298,405,341 $ 261,931,755 $ 241,604,760 $ 240,018,783 Contributions as a Percentage of Covered Payroll 15.18% 13.83% 13.37% 12.43% 11.56% * Covered Payroll - Fiscal Year consists of pensionable wages calculated for the respective fiscal year, restated for periods 2015 to 2017 pursuant to 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 2024 2023 2022 2021 2020 County’s Proportion of the Net Pension Liability 0.734369520% 0.747985695% 0.693371195% 0.682720614% 0.673478223% County’s Proportionate Share of the Net Pension Liability $ 110,162,602 $ 118,790,106 $ 73,439,084 $ 83,745,948 $ 82,230,597 County’s Covered Payroll *$ 311,112,807 $ 297,384,952 $ 252,964,206 $ 241,529,826 $ 234,174,659 County’s Proportionate Share of the Net Pension Liability (Asset) as a Percentage of Its Covered Payroll 35.41% 39.94% 29.03% 34.67% 35.12% Plan Fiduciary Net Position as a Percentage of the total Pension Liability 4.80% 4.12% 4.81% 3.56% 3.00% * 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 2024 2023 2022 2021 2020 Contractually Required Contribution $ 6,284,808 $ 5,184,935 $ 4,341,241 $ 4,008,775 $ 3,982,772 Contributions in Relation to the Contractually Required Contribution (6,284,808) (5,184,935) (4,341,241) (4,008,775) (3,982,772) Contribution Deficiency (Excess)$ - $ - $ - $ - $ - County’s Covered Payroll - Fiscal Year *$ 314,378,569 $ 298,405,341 $ 261,931,755 $ 241,604,760 $ 240,018,783 Contributions as a Percentage of Covered Payroll 2.00% 1.74% 1.66% 1.66% 1.66% * Covered Payroll consists of pensionable wages calculated as of the respective measurement date pursuant to GASB No.82, Pension Issues. 86 FINANCIAL SECTION Required Supplementary Information Page 917 of 5415 2019 2018 2017 2016 2015 0.797837050% 0.804668214% 0.796720676% 0.772938545% 0.736106708% $ 274,763,972 $ 242,370,237 $ 235,664,630 $ 195,167,590 $ 95,078,054 $ 228,455,160 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 120.27% 107.34% 111.06% 97.65% 48.72% 82.61% 84.26% 83.89% 84.88% 92.00% 2019 2018 2017 2016 2015 $ 25,202,730 $ 23,401,059 $ 20,299,090 $ 20,563,824 $ 17,830,147 (25,202,730) (23,401,059) (20,299,090) (20,563,824) (17,830,147) $ - $ - $ - $ - $ - $ 230,500,331 $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 10.93% 10.34% 9.38% 9.97% 9.21% 2019 2018 2017 2016 2015 0.683003525% 0.690065185% 0.665383863% 0.645620406% 0.642983194% $ 76,421,260 $ 73,037,274 $ 71,145,914 $ 75,244,385 $ 65,574,171 $ 228,455,160 $ 225,786,565 $ 212,195,163 $ 199,870,915 $ 195,154,275 33.45% 32.35% 33.53% 37.65% 33.60% 2.63% 2.15% 1.64% 0.97% 0.50% 2019 2018 2017 2016 2015 $ 3,792,652 $ 3,750,438 $ 3,593,353 $ 3,415,537 $ 2,614,704 (3,792,652) (3,750,438) (3,593,353) (3,415,537) (2,614,704) $ - $ - $ - $ - $ - $ 230,500,331 $ 226,283,207 $ 216,521,253 $ 206,179,415 $ 193,543,352 1.65% 1.66% 1.66% 1.66% 1.35% 87 FINANCIAL SECTION Required Supplementary Information Page 918 of 5415 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 2024 2023 2022 2021 2020 2019 2018 2017 Service Cost $ 433,482 $ 463,595 $ 673,684 $ 609,931 $ 609,998 $ 438,933 $ 491,865 $ 464,531 Interest 375,346 327,904 148,910 162,236 190,846 287,048 252,345 248,849 Changes of benefit terms - - - - - - - - Differences between expected and actual experience 2,204,683 290,477 (1,534) (588,396) (1,190) - - (8,258) Changes of assumptions or other inputs 391,890 309,325 (1,585,700) 74,553 322,360 387,596 (221,309) - Benefit payments (588,547) (595,148) (494,511) (574,452) (474,429) (674,797) (625,275) (589,882) Net change in total OPEB liability 2,816,854 796,153 (1,259,151) (316,128) 647,585 438,780 (102,374) 115,240 Total OPEB liability, beginning 9,037,961 8,241,808 9,500,959 9,817,087 9,169,502 8,730,722 8,833,096 8,717,856 Total OPEB liability, ending $ 11,854,815 $ 9,037,961 $ 8,241,808 $ 9,500,959 $ 9,817,087 $ 9,169,502 $ 8,730,722 $ 8,833,096 Covered-employee payroll $ 184,859,953 $ 176,269,735 $ 152,351,768 $ 141,768,412 $ 135,688,734 $ 132,769,448 $ 123,441,030 $ 121,574,778 Total OPEB liability as a percentage of covered employee payroll 6.41% 5.13% 5.41% 6.70% 7.24% 6.91% 7.07% 7.27% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 4.09% as of September 30, 2023 to 3.81% as of September 30, 2024. The defined benefit OPEB plan provided is not administered through a trust that meets the criteria of GASB Statement 75, paragraph 4. 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 2024 2023 2022 2021 2020 2019 2018 2017 Service Cost $ 838,265 $ 778,361 $ 734,513 $ 777,037 $ 555,065 $ 485,365 $ 520,082 $ 491,420 Interest 1,525,269 1,080,092 422,604 448,520 435,838 631,825 503,525 502,621 Changes of benefit terms - - - - - - - - Differences between expected and actual experience 6,781,811 5,877,459 10,708,734 451 5,292,054 - 2,048,462 (83,607) Changes of assumptions or other inputs 2,695,381 (883,713) (5,446,075) 353,427 949,878 2,250,569 (898,977) - Benefit payments (2,346,391) (2,352,648) (1,461,666) (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) Net change in total OPEB liability 9,494,335 4,499,551 4,958,110 249,481 6,134,384 2,293,552 1,232,031 39,081 Total OPEB liability, beginning 37,627,575 33,128,024 28,169,914 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 Total OPEB liability, ending $ 47,121,910 $ 37,627,575 $ 33,128,024 $ 28,169,914 $ 27,920,433 $ 21,786,049 $ 19,492,497 $ 18,260,466 Covered-employee payroll $ 107,517,934 $ 100,636,180 $ 95,742,481 $ 87,324,387 $ 83,944,157 $ 81,378,975 $ 80,473,682 $ 91,192,818 Total OPEB liability as a percentage of covered employee payroll 43.83% 37.39% 34.60% 32.26% 33.26% 26.77% 24.22% 20.02% Notes to the Schedule Changes in Assumptions: Change in the discount rate of 4.09% as of September 30, 2023 to 3.81% as of September 30, 2024. The defined benefit OPEB plan provided is not administered through a trust that meets the criteria of GASB Statement 75, paragraph 4. 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. 88 FINANCIAL SECTION Required Supplementary Information Page 919 of 5415 COMBINING & INDIVIDUAL FUND FINANCIAL STATEMENTS & OTHER SUPPLEMENTAL INFORMATION Page 920 of 5415 Page 921 of 5415 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 (MSTD) – 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. 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 DISTRICT – To account for taxes levied within a 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 (IRCP) – 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 UF/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 ZONES – 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. 91 FINANCIAL SECTION Nonmajor Governmental Funds Page 922 of 5415 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 Euclid and Lakeland Assessment Teen Court Legal Aid Society Animal Control Parks and Recreation Donations Public Library Domestic Violence Law Library Juvenile Cyber Security County Drug Abuse Driver Education Local Provider Participation County Drug Abuse Permanent Funds 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 capital improvements within Pelican Bay. 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. SPECIAL OBLIGATION REFUNDING REVENUE BONDS – To account for the accumulation of resources and payment of interest and principal on the Series 2020A and 2020B (Taxable) Special Obligation 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 and the Series 2022A and 2022B Special Obligation Revenue Notes (bank term loans) used to refinance the Series 2011 and 2013 Special Obligation Refunding Revenue Bonds. 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. 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. 92 FINANCIAL SECTION Nonmajor Governmental Funds Page 923 of 5415 WATER MANAGEMENT – To account for the receipt and expenditure of funds raised specifically for water management purposes. Primary funding is from ad valorem taxes and bond proceeds. 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 capital special assessment and commercial paper proceeds. 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. Primary funding is bonds proceeds and advances from other tourist tax funds. OTHER CAPITAL PROJECTS – To account for major capital expenditures financed from resources other than proceeds from the issuance of long-term debt and the one third mil levy. 93 FINANCIAL SECTION Nonmajor Governmental Funds Page 924 of 5415 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Districts Area MSTD Development Control Bay ASSETS Cash and investments $ 5,261,007 $ 20,906,667 $ 41,118,840 $ 3,658,317 $ 2,682,324 Receivables: Interest 26,708 121,175 147,174 15,404 14,687 Trade, net 14,814 69,212 2,958 - - Notes - - - - - Impact fee - - - - - Special assessments - - - - - Leases 17,936 6,143,410 - - - Due from other funds 4,014 920,555 3 54,181 69,635 Due from other governments 6,950 766,929 112,764 257 840 Deposits - - - - - Inventory for resale - - - - - Inventory 1,575,699 27,769 - 209,672 - Advances to other funds - - 9,264 - - Prepaid costs 42,811 - 70,435 - - Total assets $ 6,949,939 $ 28,955,717 $ 41,461,438 $ 3,937,831 $ 2,767,486 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 576,459 $ 485,688 $ 514,302 $ 28,584 $ 37,117 Wages payable 968,750 855,987 1,275,774 96,690 135,029 Due to other funds 29,921 38,941 32,966 7,034 4 Due to other governments 65 3,378 2,599,702 - 127 Unearned revenues - 3,625 - - - Refundable deposits - 23,894 4,241,760 - - Retainage payable - 771 - - - Advances from other funds - - - - - Total liabilities 1,575,195 1,412,284 8,664,504 132,308 172,277 Deferred inflows of resources: Unavailable revenue - - - - - Related to leases 17,100 5,436,071 - - - Total deferred inflows of resources 17,100 5,436,071 - - - Fund balances: Nonspendable 1,618,510 27,769 70,435 209,672 - Restricted 3,739,134 - 32,726,499 - - Committed - 22,079,593 - 3,595,851 2,595,209 Assigned - - - - - Unassigned - - - - - Total fund balances 5,357,644 22,107,362 32,796,934 3,805,523 2,595,209 Total liabilities, deferred inflows of resources and fund balances $ 6,949,939 $ 28,955,717 $ 41,461,438 $ 3,937,831 $ 2,767,486 See accompanying independent auditors’ report 94 FINANCIAL SECTION Nonmajor Governmental Funds Page 925 of 5415 Special Revenue Funds State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts District Fee Development Partnership IRCP Fund Administration $ 26,376,213 $ 2,110,875 $ 1,056,955 $ 1,534,892 $ 139,192,763 $ 12,930,113 $ 58,311 $ 654,502 98,310 7,656 4,628 7,718 481,656 47,531 1,084 3,535 9,673 - - - 1,941,128 2,424 - - - - - - - 126,286 - - - - - - - - - - - - - - - - - - - - - - - - 350,697 - 104,189 26,024 11,491 - 2,192,098 4,158 406,989 63,054 257 - - 389,501 9,666,889 - 4,707 486 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16,700,000 - - - - - - - - - - - $ 26,588,642 $ 2,144,555 $ 1,073,074 $ 1,932,111 $ 170,174,534 $ 13,110,512 $ 821,788 $ 721,577 $ 236,935 $ - $ 49,045 $ 437,754 $ 1,253,901 $ 392,746 $ 32,498 $ 13,575 33,367 - - - 199,066 11,366 14,185 133,989 330 446 - 49,988 506 10 - 600 - 1,083,121 - - 22 - 29 - - - - - - - - - 6,584 - - - - - - - 4,650 - - - - - - - 74,508 268,100 - - - - - - 356,374 1,351,667 49,045 487,742 1,453,495 404,122 46,712 148,164 - - - - - - - - - - - - - - 309,784 - - - - - - - 309,784 - - - - - - - - - - - - 1,444,369 168,721,039 12,706,390 - - 26,232,268 792,888 1,024,029 - - - 465,292 573,413 - - - - - - - - - - - - - - - - 26,232,268 792,888 1,024,029 1,444,369 168,721,039 12,706,390 465,292 573,413 $ 26,588,642 $ 2,144,555 $ 1,073,074 $ 1,932,111 $ 170,174,534 $ 13,110,512 $ 821,788 $ 721,577 95 FINANCIAL SECTION Nonmajor Governmental Funds Page 926 of 5415 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court University Property and Canals Fee Collier Technology Services Extension ASSETS Cash and investments $ 516,179 $ 2,549,949 $ 957,075 $ 65,191,850 $ 1,221,007 $ 1,564,952 $ 96,105 Receivables: Interest 1,913 8,908 3,617 335,721 4,859 - 348 Trade, net - - 40,301 - - - - Notes - - - - - - - Impact fee - - - - - - - Special assessments - - - - - - - Leases - - - - - - - Due from other funds - - - 396,478 59,336 - - Due from other governments - - - 198 245 63,584 5 Deposits - - - - - - - Inventory for resale - 144,014 - - - - - Inventory - - - - - - - Advances to other funds - - - - - - - Prepaid costs - - - - - 1,455 - Total assets $ 518,092 $ 2,702,871 $ 1,000,993 $ 65,924,247 $ 1,285,447 $ 1,629,991 $ 96,458 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ - $ - $ 72 $ 24,239 $ 264,035 $ 2,073 $ - Wages payable - - 15,814 38,555 7,970 284,533 - Due to other funds - - - 4,324 - 295,580 - Due to other governments - - - - 56,179 1,047,805 - Unearned revenues - - - - - - - Refundable deposits - - - - - - - Retainage payable - - - - - - - Advances from other funds - - - - - - - Total liabilities - - 15,886 67,118 328,184 1,629,991 - Deferred inflows of resources: Unavailable revenue - - - - - - - Related to leases - - - - - - - Total deferred inflows of resources - - - - - - - Fund balances: Nonspendable - - - - - 1,455 - Restricted 518,092 2,702,871 - 65,857,129 957,263 - 96,458 Committed - - 985,107 - - - - Assigned - - - - - - - Unassigned - - - - - (1,455) - Total fund balances 518,092 2,702,871 985,107 65,857,129 957,263 - 96,458 Total liabilities, deferred inflows of resources and fund balances $ 518,092 $ 2,702,871 $ 1,000,993 $ 65,924,247 $ 1,285,447 $ 1,629,991 $ 96,458 96 FINANCIAL SECTION Nonmajor Governmental Funds Page 927 of 5415 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special Facilities Affordable Innovation Revenue Special Revenue Revenue Fee Housing Zones Funds Revenue Funds Funds Funds $ 11,338,943 $ 2,149,514 $ 10,925,046 $ 8,079,609 $ 6,346,330 $ 1,471,462 $ 369,949,800 39,812 7,853 53,147 - 5,790 6,598 1,445,832 - - - - 46,474 - 2,126,984 - - - - - - 126,286 - - - - - - - - - - - - - - - - - - - - 6,512,043 74,078 - - - 79,076 22,348 4,487,707 - - - - - 545 11,014,157 - - - - - - - - - - - - - 144,014 - - - - - - 1,813,140 - - - - - - 16,709,264 - - - - - - 114,701 $ 11,452,833 $ 2,157,367 $ 10,978,193 $ 8,079,609 $ 6,477,670 $ 1,500,953 $ 414,443,928 $ 373,498 $ - $ - $ - $ 19,387 $ 15,357 $ 4,757,265 - 13,176 - - 9,844 4,952 4,099,047 - - - - 93,269 - 553,919 - - - - - 93 4,790,521 - - - - - - 3,625 - - - - - - 4,272,238 1,527 - - - - - 6,948 - - 7,500,000 - - - 7,842,608 375,025 13,176 7,500,000 - 122,500 20,402 26,326,171 - - - - - - - - - - - - - 5,762,955 - - - - - - 5,762,955 - - - - - - 1,927,841 11,077,808 - - 8,079,609 6,355,170 914,214 315,896,045 - 2,144,191 3,478,193 - - 566,337 64,532,371 - - - - - - - - - - - - - (1,455) 11,077,808 2,144,191 3,478,193 8,079,609 6,355,170 1,480,551 382,354,802 $ 11,452,833 $ 2,157,367 $ 10,978,193 $ 8,079,609 $ 6,477,670 $ 1,500,953 $ 414,443,928 97 FINANCIAL SECTION Nonmajor Governmental Funds Page 928 of 5415 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 Permanent Funds Debt Service Funds Resource Pepper Pooled Special Recovery Ranch Total Commercial Gas Tax Obligation Park Conservation Permanent Paper Refunding Refunding Endowment Bank Funds Program Revenue Bonds Revenue Bonds ASSETS Cash and investments $ 1,880,252 $ 4,231,820 $ 6,112,072 $ 49 $ 1,360,430 $ 1,563,629 Receivables: Interest 6,806 15,312 22,118 9 5,461 4,941 Trade, net - 10,506 10,506 - - - Notes - - - - - - Impact fee - - - - - - Special assessments - - - - - - Leases - - - - - - Due from other funds - - - - - - Due from other governments - - - 7,911 364,605 - Deposits - - - - - - Inventory for resale - - - - - - Inventory - - - - - - Advances to other funds - - - - - - Prepaid costs - - - - - - Total assets $ 1,887,058 $ 4,257,638 $ 6,144,696 $ 7,969 $ 1,730,496 $ 1,568,570 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ - $ - $ - $ - $ - $ - Wages payable - - - - - - Due to other funds - - - - - - Due to other governments - 206 206 - - - Unearned revenues - - - - - - Refundable deposits - - - - - - Retainage payable - - - - - - Advances from other funds - - - - - - Total liabilities - 206 206 - - - Deferred inflows of resources: Unavailable revenue - - - - - - Related to leases - - - - - - Total deferred inflows of resources - - - - - - Fund balances: Nonspendable 1,582,800 3,940,000 5,522,800 - - - Restricted 304,258 317,432 621,690 7,969 1,730,496 1,568,570 Committed - - - - - - Assigned - - - - - - Unassigned - - - - - - Total fund balances 1,887,058 4,257,432 6,144,490 7,969 1,730,496 1,568,570 Total liabilities, deferred inflows of resources and fund balances $ 1,887,058 $ 4,257,638 $ 6,144,696 $ 7,969 $ 1,730,496 $ 1,568,570 See accompanying independent auditors’ report 98 FINANCIAL SECTION Nonmajor Governmental Funds Page 929 of 5415 Debt Service Funds Capital Project Funds Tourist Development Total Emergency Tax Debt County-Wide County-Wide Correctional Medical Revenue Service Capital Parks Library Facilities Services Water Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees Management $ 2,622,527 $ 5,546,635 $ 109,476,296 $ 28,230,449 $ 525,227 $ 1,763,492 $ 459,425 $ 54,293,689 9,368 19,779 386,265 106,398 2,653 6,398 1,790 217,653 - - - - - - - - - - - - - - - - - - - - 259,651 208,898 91,794 - - - - - - - - - - - - - - - - - - - 8,077 8,828 - - - 241,221 - 372,516 2,492,112 79,728 7,369 11,140 3,117 703,196 - - - - - - - - - - - - - - - - - - - - - - - - - - 20,000,000 - - - - - - - - - - - - - $ 2,631,895 $ 5,938,930 $ 132,362,750 $ 28,425,403 $ 794,900 $ 1,989,928 $ 556,126 $ 55,455,759 $ - $ - $ 3,071,546 $ 393,479 $ - $ - $ - $ 1,919,215 - - - - - - - - - - 170,515 - - - - 719,803 - - 10,912 - - - - 20,412 - - - - - - - - - - - - - - - - - - 181,070 41,402 - - - 1,074,777 - - - - - - - - - - 3,434,043 434,881 - - - 3,734,207 - - - - 259,651 208,898 91,794 - - - - - - - - - - - - - 259,651 208,898 91,794 - - - - - - - - - 2,631,895 5,938,930 - 11,378,141 535,249 1,781,030 464,332 16,748,404 - - - - - - - - - - 128,928,707 16,612,381 - - - 34,973,148 - - - - - - - - 2,631,895 5,938,930 128,928,707 27,990,522 535,249 1,781,030 464,332 51,721,552 $ 2,631,895 $ 5,938,930 $ 132,362,750 $ 28,425,403 $ 794,900 $ 1,989,928 $ 556,126 $ 55,455,759 99 FINANCIAL SECTION Nonmajor Governmental Funds Page 930 of 5415 COLLIER COUNTY, FLORIDA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 Capital Project Funds Pelican Bay Parks Road Government Law Capital Impact Impact Road Facilities Enforcement Improvements Districts Districts Construction Impact Fees Impact Fees ASSETS Cash and investments $ 6,787,626 $ 64,425,760 $ 152,296,513 $ 78,422,076 $ 3,607,580 $ 3,900,840 Receivables: Interest 30,789 220,880 542,220 288,272 13,681 13,772 Trade, net - - - - - - Notes - - - - - - Impact fee - 2,095,578 5,767,773 - 449,219 238,930 Special assessments - - - - - - Leases - - - - - - Due from other funds 22,255 - - 2,466,992 - - Due from other governments 29,761 60,043 170,698 3,608,359 20,504 - Deposits - 1,250 - - - - Inventory for resale - -- - - - Inventory - -- - - - Advances to other funds - -- - - - Prepaid costs - -- - - - Total assets $ 6,870,431 $ 66,803,511 $ 158,777,204 $ 84,785,699 $ 4,090,984 $ 4,153,542 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities: Accounts payable $ 416,428 $ 883,105 $ 5,073,956 $ 1,359,663 $ -$ - Wages payable - - - - - - Due to other funds - - - - - - Due to other governments - - - - - - Unearned revenues - - - - - - Refundable deposits - - 22,500 81,360 - - Retainage payable 389,300 351,334 480,145 25,319 - - Advances from other funds - - - - - - Total liabilities 805,728 1,234,439 5,576,601 1,466,342 - - Deferred inflows of resources: Unavailable revenue - 2,095,578 5,767,773 - 449,219 238,930 Related to leases - -- - - - Total deferred inflows of resources - 2,095,578 5,767,773 - 449,219 238,930 Fund balances: Nonspendable - - - - - - Restricted 612,923 63,473,494 147,432,830 83,319,357 3,641,765 3,914,612 Committed - - - - - - Assigned 5,451,780 - - - - - Unassigned - - - - - - Total fund balances 6,064,703 63,473,494 147,432,830 83,319,357 3,641,765 3,914,612 Total liabilities, deferred inflows of resources and fund balances $ 6,870,431 $ 66,803,511 $ 158,777,204 $ 84,785,699 $ 4,090,984 $ 4,153,542 See accompanying independent auditors’ report 100 FINANCIAL SECTION Nonmajor Governmental Funds Page 931 of 5415 Capital Project Funds Total Total All Terrain Amateur Other Capital Nonmajor Vehicle Sports Capital Project Governmental Park Complex Projects Funds Funds $ 3,354,099 $ 11,742,606 $ 12,237,667 $ 531,523,345 $ 913,131,852 12,133 42,171 46,508 1,931,583 3,419,312 - -- -2,137,490 - -- -126,286 - -- 9,111,843 9,111,843 - -1,405 1,405 1,405 - -- -6,512,043 - -331 2,747,704 7,235,411 - -61,143 7,247,170 18,633,843 - -- 1,250 1,250 - -- -144,014 - -- - 1,813,140 - -74,508 20,074,508 36,783,772 - -- -114,701 $ 3,366,232 $ 11,784,777 $ 12,421,562 $ 572,638,808 $ 999,166,362 $ - $ 301,030 $ - $ 13,418,422 $ 18,175,687 - -- -4,099,047 - -48 890,366 1,444,285 - -- 31,324 4,822,051 - -- -3,625 - -- 103,860 4,376,098 - -- 2,543,347 2,550,295 -16,700,000 9,264 16,709,264 24,551,872 -17,001,030 9,312 33,696,583 60,022,960 - -- 9,111,843 9,111,843 - -- -5,762,955 - -- 9,111,843 14,874,798 - -- -7,450,641 - -155,636 333,457,773 655,914,438 - -- -64,532,371 3,366,232 -12,256,614 201,588,862 201,588,862 -(5,216,253) - (5,216,253) (5,217,708) 3,366,232 (5,216,253) 12,412,250 529,830,382 924,268,604 $ 3,366,232 $ 11,784,777 $ 12,421,562 $ 572,638,808 $ 999,166,362 101 FINANCIAL SECTION Nonmajor Governmental Funds Page 932 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2024 Special Revenue Funds Water Management Road Unincorporated Community and Pollution Pelican Districts Area MSTD Development Control Bay Revenues: Taxes $-$64,495,675 $-$3,493,594 $ 765,460 Licenses, permits and impact fees -42,988 26,185,373 -- Intergovernmental 1,168,885 261,473 -21,801 5,979 Charges for services 345,446 3,280,049 4,243,426 216,326 10,000 Fines and forfeitures -162,191 --- Interest earnings 292,412 2,118,750 2,638,464 201,854 227,564 Special assessments ----5,027,077 Miscellaneous 39,994 299,959 51,150 -72,392 Total revenues 1,846,737 70,661,085 33,118,413 3,933,575 6,108,472 Expenditures: Current: General government -6,322,126 11,430,786 -- Public safety -4,880,930 22,237,682 -- Physical environment -1,156,761 1,668,253 2,982,789 1,125,093 Transportation 26,187,525 10,067,090 454,217 -3,893,494 Economic environment ----- Human services ----- Culture and recreation -16,044,401 --- Debt service Principal 51,591 59,591 --80,690 Interest 3,862 9,409 --5,849 Fiscal charges ----- Capital outlay 779,604 381,840 6,000 -318,933 Total expenditures 27,022,582 38,922,148 35,796,938 2,982,789 5,424,059 Excess (deficit) of revenues over (under) expenditures (25,175,845) 31,738,937 (2,678,525) 950,786 684,413 Other financing sources (uses): Loans issued ----- SBITAs 179,106 91,374 --- Sale of capital assets 43,394 18,806 402 -35,704 Insurance proceeds 259,961 36,526 1,663 -497 Transfers in 27,629,700 1,174,375 3 1,012,767 69,635 Transfers out (963,400) (34,406,269) (1,046,600) (216,657) (640,177) Total other financing sources (uses)27,148,761 (33,085,188) (1,044,532) 796,110 (534,341) Net change in fund balances 1,972,916 (1,346,251) (3,723,057) 1,746,896 150,072 Fund balances at beginning of year 3,384,728 23,453,613 36,519,991 2,058,627 2,445,137 Fund balances at end of year $ 5,357,644 $ 22,107,362 $ 32,796,934 $ 3,805,523 $ 2,595,209 See accompanying independent auditors’ report 102 FINANCIAL SECTION Nonmajor Governmental Funds Page 933 of 5415 Special Revenue Funds State Fire 911 Housing Improvement Control Lighting Enhancement Tourist Initiative 800 MHz State Court Districts Districts District Fee Development Partnership IRCP Fund Administration $ 7,724,818 $ 1,887,145 $ 874,627 $ - $ 48,636,665 $ - $ - $ - - - - - - - - - 75,585 707 144 2,575,987 9,828,688 4,592,014 - - 421,075 - - - 2,866,160 - 816,780 125,420 - - - - - - - 649,456 1,455,886 87,085 70,666 108,482 7,012,931 691,143 27,959 63,427 - - - - - - - - - - 59,289 50,000 23,081 253,189 169,572 - 9,677,364 1,974,937 1,004,726 2,734,469 68,367,525 5,536,346 1,014,311 838,303 - - - - - - - 1,197,572 - 3,974,128 - 1,923,545 - - 1,666,995 1,840,183 299,889 - - - 1,685,643 - - - 1,616,143 - 833,629 - - - - - - - - - - 2,458,631 - - - - - - - - - - 1,225,168 - - - 19,016,395 - - - - - - - 3,630 - 366,081 - 2,607 - - - 170 - 33,956 - - - - - - - - - 276,985 826,667 - 905,421 634,800 - - - 3,420,792 4,800,795 833,629 2,828,966 21,340,638 2,458,631 2,067,032 3,037,755 6,256,572 (2,825,858) 171,097 (94,497) 47,026,887 3,077,715 (1,052,721) (2,199,452) - - - - - - - - - - - - - - - - 161 11,750 - - 17,070 - - - 32,558 - - - 9,413 - - - 716,754 3,319,724 11,487 - 3,673,600 - 1,278,900 1,907,600 (637,689) (54,470) (25,144) - (7,718,533) (63,143) - (75,700) 111,784 3,277,004 (13,657) - (4,018,450) (63,143) 1,278,900 1,831,900 6,368,356 451,146 157,440 (94,497) 43,008,437 3,014,572 226,179 (367,552) 19,863,912 341,742 866,589 1,538,866 125,712,602 9,691,818 239,113 940,965 $ 26,232,268 $ 792,888 $ 1,024,029 $ 1,444,369 $ 168,721,039 $ 12,706,390 $ 465,292 $ 573,413 103 FINANCIAL SECTION Nonmajor Governmental Funds Page 934 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2024 Special Revenue Funds GAC Land Court Confiscated Sales, Roads Utility Conservation Information Court Property and Canals Fee Collier Technology Services Revenues: Taxes $ - $ - $ 168,994 $ 29,779,742 $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - 186,016 - 730,645 Charges for services - - - 105,785 788,972 7,691,864 Fines and forfeitures 7,573 - - - - - Interest earnings 31,442 177,449 60,900 5,042,700 88,051 63,290 Special assessments - - - - - - Miscellaneous - 116,914 - 163,714 - - Total revenues 39,015 294,363 229,894 35,277,957 877,023 8,485,799 Expenditures: Current: General government - - - - 1,155,417 9,540,943 Public safety 16,000 - - - 15,581 - Physical environment - - 348,637 1,837,878 - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - 41,016 - Culture and recreation - 250,000 - - - - Debt service Principal - - - - - - Interest - - - 25,224 - - Fiscal charges - - - - - - Capital outlay - - - 9,985,743 36,098 - Total expenditures 16,000 250,000 348,637 11,848,845 1,248,112 9,540,943 Excess (deficit) of revenues over (under) expenditures 23,015 44,363 (118,743) 23,429,112 (371,089) (1,055,144) Other financing sources (uses): Loans issued - - - - - - SBITAs - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - - - 396,464 - 1,055,144 Transfers out - - (10,200) (30,509,658) - - Total other financing sources (uses) - - (10,200) (30,113,194) - 1,055,144 Net change in fund balances 23,015 44,363 (128,943) (6,684,082) (371,089) - Fund balances at beginning of year 495,077 2,658,508 1,114,050 72,541,211 1,328,352 - Fund balances at end of year $ 518,092 $ 2,702,871 $ 985,107 $ 65,857,129 $ 957,263 $ - See accompanying independent auditors’ report 104 FINANCIAL SECTION Nonmajor Governmental Funds Page 935 of 5415 Special Revenue Funds Other Other Other Total Court Economic and Court Special Public Safety Special Special University Facilities Affordable Innovation Revenue Special Revenue Revenue Extension Fee Housing Zone Funds Revenue Funds Funds Funds $ - $ - $ - $ 3,276,400 $ - $ - $ - $ 161,103,120 - - - - - - 100,766 26,329,127 - - - - - - - 19,447,924 76,653 - 35,350 - 1,082,950 1,280,689 266,664 23,653,609 - 916,383 - - - 79,592 50,888 1,866,083 3,491 627,282 112,507 680,586 363,557 94,207 178,348 22,520,433 - - - - - - 10,657,446 15,684,523 - - - - - - 155,840 1,455,094 80,144 1,543,665 147,857 3,956,986 1,446,507 1,454,488 11,409,952 272,059,913 - 16,488 - - 39,957 - 186,658 29,889,947 - - - - - 711,980 193,000 37,460,024 9,483 - - - - - - 11,114,426 - - - - - - - 43,052,098 - - 182,246 4,000,000 - - - 6,640,877 - - - - - - 13,076,666 13,117,682 - - - - - - 9,499 36,545,463 - - - - 81,271 - - 642,854 - - - - 2,025 - - 83,102 - - - - - - - - - 446,286 - - 13,187 - - 14,611,564 9,483 462,774 182,246 4,000,000 136,440 711,980 13,465,823 193,158,037 70,661 1,080,891 (34,389) (43,014) 1,310,067 742,508 (2,055,871) 78,901,876 - - - - - - - - - - - - - - - 270,480 - - - - - - 112 127,399 - 105,507 - - - - 3,802 449,927 - - 626,700 - - - 219,500 43,092,353 - - - - - - - (76,367,640) - 105,507 626,700 - - - 223,414 (32,427,481) 70,661 1,186,398 592,311 (43,014) 1,310,067 742,508 (1,832,457) 46,474,395 25,797 9,891,410 1,551,880 3,521,207 6,769,542 5,612,662 3,313,008 335,880,407 $ 96,458 $ 11,077,808 $ 2,144,191 $ 3,478,193 $ 8,079,609 $ 6,355,170 $ 1,480,551 $ 382,354,802 105 FINANCIAL SECTION Nonmajor Governmental Funds Page 936 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2024 Permanent Funds Debt Service Funds Pooled Special Resource Pepper Ranch Total Commercial Gas Tax Obligation Recovery Park Conservation Permanent Paper Refunding Refunding Endowment Bank Funds Program Revenue Bonds Revenue Bonds Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - - 2,211,754 - Charges for services 13,782 - 13,782 - - - Fines and forfeitures - - - - - - Interest earnings 110,780 249,561 360,341 58 85,739 115,461 Special assessments - - - - - - Miscellaneous - 41,200 41,200 - - - Total revenues 124,562 290,761 415,323 58 2,297,493 115,461 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment 100 6,590 6,690 - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service Principal - - - - 12,965,000 16,581,000 Interest - - - 240,999 705,587 6,899,105 Fiscal charges - - - 3,000 1,250 3,750 Capital outlay - - - - - - Total expenditures 100 6,590 6,690 243,999 13,671,837 23,483,855 Excess (deficit) of revenues over (under) expenditures 124,462 284,171 408,633 (243,941) (11,374,344) (23,368,394) Other financing sources (uses): Loans issued - - - 11,605 - - SBITAs - - - - - - Sale of capital assets 5 - 5 - - - Insurance proceeds - - - - - - Transfers in - - - 236,700 11,300,000 22,518,700 Transfers out - - - - - - Total other financing sources (uses) 5 - 5 248,305 11,300,000 22,518,700 Net change in fund balances 124,467 284,171 408,638 4,364 (74,344) (849,694) Fund balances at beginning of year 1,762,591 3,973,261 5,735,852 3,605 1,804,840 2,418,264 Fund balances at end of year $ 1,887,058 $ 4,257,432 $ 6,144,490 $ 7,969 $ 1,730,496 $ 1,568,570 See accompanying independent auditors’ report 106 FINANCIAL SECTION Nonmajor Governmental Funds Page 937 of 5415 Debt Service Funds Capital Project Funds Tourist Total Emergency Development Debt County-Wide County-Wide Correctional Medical Tax Service Capital Parks Library Facilities Services Water Revenue Bonds Funds Improvements Improvements Impact Fees Impact Fees Impact Fees Management $ - $ - $ - $ - $ - $ - $ - $ - - - - 620,168 1,057,855 1,852,895 533,625 - - 2,211,754 - - - - - 60,319 - - - - - - - - - - - - - - - - 122,846 324,104 5,270,640 1,665,318 36,899 98,534 29,808 4,308,954 - - - - - - - - - - 80,467 - - - - 640,522 122,846 2,535,858 5,351,107 2,285,486 1,094,754 1,951,429 563,433 5,009,795 - - 7,546,078 - - - - - - - 2,047,007 - - 10,614 12,376 - - - 32,035 - - - - 6,533,350 - - - - - - - - - - - - - - - - - - - - - - - - - - 218,145 3,109,809 7,711 - - - 1,195,000 30,741,000 53,999 - - - - - 2,524,375 10,370,066 11,142 - - - - - 1,250 9,250 - - - - - - - - 10,827,550 2,313,094 - - 24,914 21,589,436 3,720,625 41,120,316 20,735,956 5,422,903 7,711 10,614 37,290 28,122,786 (3,597,779) (38,584,458) (15,384,849) (3,137,417) 1,087,043 1,940,815 526,143 (23,112,991) - 11,605 - - - - - - - - 310,614 - - - - - - - - 2,000 - - 1 - - - - - - - - - 3,754,500 37,809,900 53,912,600 6,900,000 - - - 8,500,000 - - (2,849,400) (13,383) (1,066,200) (1,628,500) (512,000) (5,911,425) 3,754,500 37,821,505 51,373,814 6,888,617 (1,066,200) (1,628,500) (511,999) 2,588,575 156,721 (762,953) 35,988,965 3,751,200 20,843 312,315 14,144 (20,524,416) 2,475,174 6,701,883 92,939,742 24,239,322 514,406 1,468,715 450,188 72,245,968 $ 2,631,895 $ 5,938,930 $ 128,928,707 $ 27,990,522 $ 535,249 $ 1,781,030 $ 464,332 $ 51,721,552 107 FINANCIAL SECTION Nonmajor Governmental Funds Page 938 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Fiscal Year Ended September 30, 2024 Capital Project Funds Pelican Bay Parks Road Government Law Capital Impact Impact Road Facilities Enforcement Improvements Districts Districts Construction Impact Fees Impact Fees Revenues: Taxes $-$-$-$18,523,675 $-$- Licenses, permits and impact fees -10,685,396 28,605,005 -3,511,978 2,156,407 Intergovernmental ---5,072,153 -- Charges for services ---151,232 -- Fines and forfeitures ------ Interest earnings 514,203 3,524,727 8,380,696 4,313,725 213,052 208,525 Special assessments 1,876,094 ----- Miscellaneous 14,579 --747,456 -- Total revenues 2,404,876 14,210,123 36,985,701 28,808,241 3,725,030 2,364,932 Expenditures: Current: General government ----11,437 - Public safety -----10,800 Physical environment 1,381,357 ----- Transportation --670,138 15,663,753 -- Economic environment ------ Human services ------ Culture and recreation -13,291 ---- Debt service Principal --- 181,984 -- Interest ---25,893 -- Fiscal charges ------ Capital outlay 5,049,297 4,059,008 14,828,453 4,406,634 -- Total expenditures 6,430,654 4,072,299 15,498,591 20,278,264 11,437 10,800 Excess (deficit) of revenues over (under) expenditures (4,025,778) 10,137,824 21,487,110 8,529,977 3,713,593 2,354,132 Other financing sources (uses): Loans issued 2,988,395 ----- SBITAs ------ Sale of capital assets -102 19,577 14,542 4 - Insurance proceeds ---22,097 -- Transfers in 1,015,655 1,887,335 -22,800,000 1,383,900 - Transfers out (283,327) (4,634,000) (1,500,000) (11,431,558) (4,631,900) (1,688,600) Total other financing sources (uses)3,720,723 (2,746,563) (1,480,423) 11,405,081 (3,247,996) (1,688,600) Net change in fund balances (305,055) 7,391,261 20,006,687 19,935,058 465,597 665,532 Fund balances at beginning of year 6,369,758 56,082,233 127,426,143 63,384,299 3,176,168 3,249,080 Fund balances at end of year $ 6,064,703 $ 63,473,494 $ 147,432,830 $ 83,319,357 $ 3,641,765 $3,914,612 See accompanying independent auditors’ report 108 FINANCIAL SECTION Nonmajor Governmental Funds Page 939 of 5415 Capital Project Funds Total Total All Terrain Amateur Other Capital Nonmajor Vehicle Sports Capital Project Governmental Park Complex Projects Funds Funds $ - $ - $ 17,312 $ 18,540,987 $ 179,644,107 - - 11,994 49,035,323 75,364,450 - - - 5,132,472 26,792,150 - - - 151,232 23,818,623 - - - - 1,866,083 198,302 626,252 783,348 30,172,983 53,377,861 - - - 1,876,094 17,560,617 - 200,000 - 1,683,024 3,179,318 198,302 826,252 812,654 106,592,115 381,603,209 - - 509,205 8,066,720 37,956,667 - - 39,985 2,120,782 39,580,806 - - - 7,946,742 19,067,858 - - - 16,333,891 59,385,989 - - - - 6,640,877 - - - - 13,117,682 450 151,299 521,460 4,022,165 40,567,628 - - - 235,983 31,619,837 - - - 37,035 10,490,203 - - - - 9,250 - 380,594 311,155 63,790,135 78,401,699 450 531,893 1,381,805 102,553,453 336,838,496 197,852 294,359 (569,151) 4,038,662 44,764,713 - - - 2,988,395 3,000,000 - - - 310,614 581,094 - - - 36,226 163,630 - - - 22,097 472,024 - 4,198,200 200,330 100,798,020 181,700,273 - - (7,724) (36,158,017) (112,525,657) - 4,198,200 192,606 67,997,335 73,391,364 197,852 4,492,559 (376,545) 72,035,997 118,156,077 3,168,380 (9,708,812) 12,788,795 457,794,385 806,112,527 $ 3,366,232 $ (5,216,253) $ 12,412,250 $ 529,830,382 $ 924,268,604 109 FINANCIAL SECTION Nonmajor Governmental Funds Page 940 of 5415 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, 2024 Infrastructure Sales Tax (Major Fund) Road Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 30,313,400 $ 33,851,124 $ 3,537,724 $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - 1,261,736 1,168,885 (92,851) Charges for services - - - 278,500 345,446 66,946 Fines and forfeitures - - - - - - Interest earnings 600,000 13,123,500 12,523,500 25,000 210,660 185,660 Special assessments - - - - - - Miscellaneous - - - 32,600 39,994 7,394 Total revenues 30,913,400 46,974,624 16,061,224 1,597,836 1,764,985 167,149 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment - - - - - - Transportation - - - 29,210,322 26,365,942 2,844,380 Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - 60,000 55,453 4,547 Capital outlay 223,814,073 54,402,531 169,411,542 666,498 600,498 66,000 Total expenditures 223,814,073 54,402,531 169,411,542 29,936,820 27,021,893 2,914,927 Excess (deficit) of revenues over (under) expenditures (192,900,673) (7,427,907) 185,472,766 (28,338,984) (25,256,908) 3,082,076 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - 43,394 43,394 Insurance proceeds - - - 238,156 259,961 21,805 Transfers in - - - 27,629,700 27,629,700 - Transfers out (5,213,335) (1,551,966) 3,661,369 (963,400) (963,400) - Total other financing sources (uses) (5,213,335) (1,551,966) 3,661,369 26,904,456 26,969,655 65,199 Net change in fund balances (198,114,008) (8,979,873) 189,134,135 (1,434,528) 1,712,747 3,147,275 Fund balances at beginning of year 366,508,766 345,032,703 (21,476,063) 1,554,528 3,384,728 1,830,200 Fund balances at end of year $ 168,394,758 $ 336,052,830 $ 167,658,072 $ 120,000 $ 5,097,475 $ 4,977,475 Reconciliation: Net change in fund balance, budgetary basis $ (8,979,873) $ 1,712,747 Net change in fair value of investments 7,418,049 81,752 Change in inventory - 178,417 SBITA inception related capital outlay - (179,106) SBITA inception proceeds - 179,106 Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ (1,561,824) $ 1,972,916 See accompanying independent auditors’ report 110 FINANCIAL SECTION Nonmajor Governmental Funds Page 941 of 5415 Unincorporated Area MSTD Community Development (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 66,595,100 $ 64,495,675 $ (2,099,425) $ - $ - $ - 33,300 42,988 9,688 26,671,400 26,185,373 (486,027) - 261,473 261,473 - - - 3,450,700 3,280,049 (170,651) 3,930,200 4,243,426 313,226 172,000 162,191 (9,809) - - - 100,000 1,480,533 1,380,533 1,001,600 1,551,440 549,840 - - - - - - 282,900 299,959 17,059 52,000 51,150 (850) 70,634,000 70,022,868 (611,132) 31,655,200 32,031,389 376,189 10,074,013 6,322,126 3,751,887 15,610,433 11,430,786 4,179,647 5,576,500 4,880,930 695,570 26,520,910 22,237,682 4,283,228 1,606,374 1,156,761 449,613 2,044,200 1,668,253 375,947 13,741,750 10,063,464 3,678,286 462,300 454,217 8,083 - - - - - - - - - - - - 17,396,700 16,044,401 1,352,299 - - - 70,000 69,000 1,000 - - - 1,571,769 290,466 1,281,303 47,382 6,000 41,382 50,037,106 38,827,148 11,209,958 44,685,225 35,796,938 8,888,287 20,596,894 31,195,720 10,598,826 (13,030,025) (3,765,549) 9,264,476 - - - - - - - 18,806 18,806 - 402 402 22,532 36,526 13,994 - 1,663 1,663 6,988,600 1,174,375 (5,814,225) - 3 3 (34,775,918) (34,406,269) 369,649 (1,046,600) (1,046,600) - (27,764,786) (33,176,562) (5,411,776) (1,046,600) (1,044,532) 2,068 (7,167,892) (1,980,842) 5,187,050 (14,076,625) (4,810,081) 9,266,544 17,544,678 23,453,613 5,908,935 35,266,125 36,519,991 1,253,866 $ 10,376,786 $ 21,472,771 $ 11,095,985 $ 21,189,500 $ 31,709,910 $ 10,520,410 $ (1,980,842) $ (4,810,081) 638,217 1,087,024 (3,626) - (91,374) - 91,374 - - - - - - - - - $ (1,346,251) $ (3,723,057) 111 FINANCIAL SECTION Nonmajor Governmental Funds Page 942 of 5415 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, 2024 Water Management and Pollution Control Pelican Bay (Budgetary Basis)(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 3,647,000 $ 3,493,594 $ (153,406) $ 800,000 $ 765,460 $ (34,540) Licenses, permits and impact fees ------ Intergovernmental -21,801 21,801 -5,979 5,979 Charges for services 130,000 216,326 86,326 34,100 10,000 (24,100) Fines and forfeitures ------ Interest earnings 7,000 146,041 139,041 31,400 157,710 126,310 Special assessments ---5,215,600 5,027,077 (188,523) Miscellaneous ---61,200 72,392 11,192 Total revenues 3,784,000 3,877,762 93,762 6,142,300 6,038,618 (103,682) Expenditures: Current: General government ------ Public safety ------ Physical environment 4,042,579 3,053,793 988,786 1,239,700 1,125,093 114,607 Transportation --- 4,128,900 3,893,494 235,406 Economic environment ------ Human services ------ Culture and recreation ------ Debt service ---90,000 86,539 3,461 Capital outlay ---336,267 318,933 17,334 Total expenditures 4,042,579 3,053,793 988,786 5,794,867 5,424,059 370,808 Excess (deficit) of revenues over (under) expenditures (258,579) 823,969 1,082,548 347,433 614,559 267,126 Other financing sources (uses): Loans issued ------ Sale of capital assets ----35,704 35,704 Insurance proceeds ----497 497 Transfers in 1,355,700 1,012,767 (342,933) -69,635 69,635 Transfers out (231,700) (216,657) 15,043 (717,300) (640,177) 77,123 Total other financing sources (uses) 1,124,000 796,110 (327,890) (717,300) (534,341) 182,959 Net change in fund balances 865,421 1,620,079 754,658 (369,867) 80,218 450,085 Fund balances at beginning of year 1,741,279 2,058,627 317,348 2,227,167 2,445,137 217,970 Fund balances at end of year $ 2,606,700 $ 3,678,706 $ 1,072,006 $ 1,857,300 $ 2,525,355 $ 668,055 Reconciliation: Net change in fund balance, budgetary basis $ 1,620,079 $80,218 Net change in fair value of investments 55,813 69,854 Change in inventory 71,004 - SBITA inception related capital outlay -- SBITA inception proceeds -- Interfund transfers in -- Interfund transfers out -- Advances budgeted as transfers -- Unbudgeted funds -- Net change in fund balance, GAAP basis $ 1,746,896 $ 150,072 See accompanying independent auditors’ report 112 FINANCIAL SECTION Nonmajor Governmental Funds Page 943 of 5415 Improvement Districts Fire Control Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 8,052,100 $ 7,724,818 $ (327,282) $ 1,989,200 $ 1,887,145 $ (102,055) - - - - - - - 75,585 75,585 - 707 707 226,900 421,075 194,175 - - - - - - - - - 116,100 943,985 827,885 2,000 68,235 66,235 - - - - - - - - - - - - 8,395,100 9,165,463 770,363 1,991,200 1,956,087 (35,113) - - - - - - - - - 4,418,408 3,974,128 444,280 7,269,271 299,889 6,969,382 - - - 4,840,843 1,616,143 3,224,700 - - - - - - - - - - - - - - - 1,402,600 1,225,168 177,432 - - - 3,000 2,607 393 - - - 6,205,084 276,985 5,928,099 850,000 826,667 23,333 19,720,798 3,420,792 16,300,006 5,268,408 4,800,795 467,613 (11,325,698) 5,744,671 17,070,369 (3,277,208) (2,844,708) 432,500 - - - - - - - 161 161 - 11,750 11,750 - 32,558 32,558 - - - 1,589,600 1,693,754 104,154 3,293,700 3,319,724 26,024 (1,671,300) (1,614,689) 56,611 (64,200) (54,470) 9,730 (81,700) 111,784 193,484 3,229,500 3,277,004 47,504 (11,407,398) 5,856,455 17,263,853 (47,708) 432,296 480,004 22,122,598 19,863,912 (2,258,686) 254,708 341,742 87,034 $ 10,715,200 $ 25,720,367 $ 15,005,167 $ 207,000 $ 774,038 $ 567,038 $ 5,856,455 $ 432,296 511,901 18,850 - - - - - - (977,000) - 977,000 - - - - - $ 6,368,356 $ 451,146 113 FINANCIAL SECTION Nonmajor Governmental Funds Page 944 of 5415 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, 2024 Lighting District 911 Enhancement Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 908,300 $ 874,627 $ (33,673) $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - 144 144 2,070,100 2,575,987 505,887 Charges for services - - - - - - Fines and forfeitures - - - - - - Interest earnings 2,500 46,592 44,092 12,000 70,928 58,928 Special assessments - - - - - - Miscellaneous - 59,289 59,289 - 50,000 50,000 Total revenues 910,800 980,652 69,852 2,082,100 2,696,915 614,815 Expenditures: Current: General government - - - - - - Public safety - - - 2,863,000 1,923,545 939,455 Physical environment - - - - - - Transportation 958,600 833,629 124,971 - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay - - - - 905,421 (905,421) Total expenditures 958,600 833,629 124,971 2,863,000 2,828,966 34,034 Excess (deficit) of revenues over (under) expenditures (47,800) 147,023 194,823 (780,900) (132,051) 648,849 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - 11,487 11,487 - - - Transfers out (26,000) (25,144) 856 - - - Total other financing sources (uses) (26,000) (13,657) 12,343 - - - Net change in fund balances (73,800) 133,366 207,166 (780,900) (132,051) 648,849 Fund balances at beginning of year 874,900 866,589 (8,311) 1,467,800 1,538,866 71,066 Fund balances at end of year $ 801,100 $ 999,955 $ 198,855 $ 686,900 $ 1,406,815 $ 719,915 Reconciliation: Net change in fund balance, budgetary basis $ 133,366 $ (132,051) Net change in fair value of investments 24,074 37,554 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 157,440 $ (94,497) See accompanying independent auditors’ report 114 FINANCIAL SECTION Nonmajor Governmental Funds Page 945 of 5415 Tourist Development State Housing Initiativeship Partnership (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 34,476,400 $ 48,636,665 $ 14,160,265 $ - $ - $ - - - - - - - - 9,828,688 9,828,688 15,956,942 4,592,014 (11,364,928) 2,485,800 2,866,160 380,360 - - - - - - - - - 660,100 4,460,647 3,800,547 517,989 453,900 (64,089) - - - - - - 3,000 23,081 20,081 905,358 253,189 (652,169) 37,625,300 65,815,241 28,189,941 17,380,289 5,299,103 (12,081,186) - - - - - - - - - - - - 6,393,540 1,685,643 4,707,897 - - - - - - - - - - - - 17,380,289 2,458,631 14,921,658 - - - - - - 36,168,758 19,016,395 17,152,363 - - - 4,000 3,800 200 - - - 37,054,675 634,800 36,419,875 - - - 79,620,973 21,340,638 58,280,335 17,380,289 2,458,631 14,921,658 (41,995,673) 44,474,603 86,470,276 - 2,840,472 2,840,472 - - - - - - - 17,070 17,070 - - - - 9,413 9,413 - - - 7,686,600 7,186,600 (500,000) - - - (11,323,500) (11,231,533) 91,967 - (63,143) (63,143) (3,636,900) (4,018,450) (381,550) - (63,143) (63,143) (45,632,573) 40,456,153 86,088,726 - 2,777,329 2,777,329 97,109,367 125,712,602 28,603,235 - 9,691,818 9,691,818 $ 51,476,794 $ 166,168,755 $ 114,691,961 $ - $ 12,469,147 $ 12,469,147 $ 40,456,153 $ 2,777,329 2,552,284 237,243 - - - - - - (3,513,000) - 3,513,000 - - - - - $ 43,008,437 $ 3,014,572 115 FINANCIAL SECTION Nonmajor Governmental Funds Page 946 of 5415 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, 2024 800 MHZ IRCP Fund State Court Administration (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services 940,000 816,780 (123,220) 150,000 125,420 (24,580) Fines and forfeitures - - - 607,200 649,456 42,256 Interest earnings 2,000 21,355 19,355 2,000 38,315 36,315 Special assessments - - - - - - Miscellaneous 155,200 169,572 14,372 - - - Total revenues 1,097,200 1,007,707 (89,493) 759,200 813,191 53,991 Expenditures: Current: General government - - - 1,301,100 1,197,572 103,528 Public safety 1,749,942 1,666,995 82,947 1,848,700 1,840,183 8,517 Physical environment - - - - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service 410,000 400,037 9,963 - - - Capital outlay 190,000 - 190,000 - - - Total expenditures 2,349,942 2,067,032 282,910 3,149,800 3,037,755 112,045 Excess (deficit) of revenues over (under) expenditures (1,252,742) (1,059,325) 193,417 (2,390,600) (2,224,564) 166,036 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in 1,278,900 1,278,900 - 1,923,400 1,923,400 - Transfers out - - - (91,500) (91,500) - Total other financing sources (uses) 1,278,900 1,278,900 - 1,831,900 1,831,900 - Net change in fund balances 26,158 219,575 193,417 (558,700) (392,664) 166,036 Fund balances at beginning of year 46,342 239,113 192,771 732,400 940,965 208,565 Fund balances at end of year $ 72,500 $ 458,688 $ 386,188 $ 173,700 $ 548,301 $ 374,601 Reconciliation: Net change in fund balance, budgetary basis $ 219,575 $ (392,664) Net change in fair value of investments 6,604 25,112 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - (15,800) Interfund transfers out - 15,800 Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 226,179 $ (367,552) See accompanying independent auditors’ report 116 FINANCIAL SECTION Nonmajor Governmental Funds Page 947 of 5415 Confiscated Property GAC Land Sales, Roads and Canals (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - 7,573 7,573 - - - 5,000 19,168 14,168 33,900 117,351 83,451 - - - - - - - - - - 116,914 116,914 5,000 26,741 21,741 33,900 234,265 200,365 - - - - - - 16,000 16,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 255,000 250,000 5,000 - - - - - - - - - - - - 16,000 16,000 - 255,000 250,000 5,000 (11,000) 10,741 21,741 (221,100) (15,735) 205,365 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (11,000) 10,741 21,741 (221,100) (15,735) 205,365 522,100 495,077 (27,023) 1,678,300 2,658,508 980,208 $ 511,100 $ 505,818 $ (5,282) $ 1,457,200 $ 2,642,773 $ 1,185,573 $ 10,741 $ (15,735) 12,274 60,098 - - - - - - - - - - - - - - $ 23,015 $ 44,363 117 FINANCIAL SECTION Nonmajor Governmental Funds Page 948 of 5415 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, 2024 Utility Fee Conservation Collier (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ 150,000 $ 168,994 $ 18,994 $ 31,089,400 $ 29,779,742 $ (1,309,658) Licenses, permits and impact fees - - - - - - Intergovernmental - - - - 186,016 186,016 Charges for services 100,000 - (100,000) - 105,785 105,785 Fines and forfeitures - - - - - - Interest earnings 18,800 37,025 18,225 1,723,500 3,261,979 1,538,479 Special assessments - - - - - - Miscellaneous - - - 39,000 163,714 124,714 Total revenues 268,800 206,019 (62,781) 32,851,900 33,497,236 645,336 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment 405,900 348,637 57,263 2,596,067 1,837,878 758,189 Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - 30,000 25,224 4,776 Capital outlay - - - 23,550,985 9,985,743 13,565,242 Total expenditures 405,900 348,637 57,263 26,177,052 11,848,845 14,328,207 Excess (deficit) of revenues over (under) expenditures (137,100) (142,618) (5,518) 6,674,848 21,648,391 14,973,543 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - - - 675,000 1,071,464 396,464 Transfers out (10,200) (10,200) - (55,445,800) (31,184,658) 24,261,142 Total other financing sources (uses) (10,200) (10,200) - (54,770,800) (30,113,194) 24,657,606 Net change in fund balances (147,300) (152,818) (5,518) (48,095,952) (8,464,803) 39,631,149 Fund balances at beginning of year 1,125,400 1,114,050 (11,350) 73,382,217 72,541,211 (841,006) Fund balances at end of year $ 978,100 $ 961,232 $ (16,868) $ 25,286,265 $ 64,076,408 $ 38,790,143 Reconciliation: Net change in fund balance, budgetary basis $ (152,818) $ (8,464,803) Net change in fair value of investments 23,875 1,780,721 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - (675,000) Interfund transfers out - 675,000 Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ (128,943) $ (6,684,082) See accompanying independent auditors’ report 118 FINANCIAL SECTION Nonmajor Governmental Funds Page 949 of 5415 Court Information Technology Court Services (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - - - - - - - - - - 359,600 730,645 371,045 800,000 788,972 (11,028) 6,825,711 7,691,864 866,153 - - - - - - 4,300 51,075 46,775 28,000 63,290 35,290 - - - - - - - - - - - - 804,300 840,047 35,747 7,213,311 8,485,799 1,272,488 1,398,000 1,155,417 242,583 8,488,311 8,408,901 79,410 27,500 15,581 11,919 - - - - - - - - - - - - - - - - - - - - - 63,200 41,016 22,184 - - - - - - - - - - - - - - - 75,000 36,098 38,902 - - - 1,563,700 1,248,112 315,588 8,488,311 8,408,901 79,410 (759,400) (408,065) 351,335 (1,275,000) 76,898 1,351,898 - - - - - - - - - - - - - - - - - - - - - 1,275,000 1,055,144 (219,856) - - - - - - - - - 1,275,000 1,055,144 (219,856) (759,400) (408,065) 351,335 - 1,132,042 1,132,042 1,315,700 1,328,352 12,652 - - - $ 556,300 $ 920,287 $ 363,987 $ - $ 1,132,042 $ 1,132,042 $ (408,065) $ 1,132,042 36,976 - - - - - - - - - - - - - - (1,132,042) $ (371,089) $ - 119 FINANCIAL SECTION Nonmajor Governmental Funds Page 950 of 5415 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, 2024 University Extension Court Facilities Fee (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services 11,500 76,653 65,153 - - - Fines and forfeitures - - - 900,000 916,383 16,383 Interest earnings 400 2,723 2,323 35,000 388,329 353,329 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 11,900 79,376 67,476 935,000 1,304,712 369,712 Expenditures: Current: General government - - - 2,263,464 16,488 2,246,976 Public safety - - - - - - Physical environment 10,200 9,483 717 - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay - - - 5,522,392 446,286 5,076,106 Total expenditures 10,200 9,483 717 7,785,856 462,774 7,323,082 Excess (deficit) of revenues over (under) expenditures 1,700 69,893 68,193 (6,850,856) 841,938 7,692,794 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - 105,507 105,507 Transfers in - - - - - - Transfers out - - - - - - Total other financing sources (uses) - - - - 105,507 105,507 Net change in fund balances 1,700 69,893 68,193 (6,850,856) 947,445 7,798,301 Fund balances at beginning of year 11,500 25,797 14,297 9,917,495 9,891,410 (26,085) Fund balances at end of year $ 13,200 $ 95,690 $ 82,490 $ 3,066,639 $ 10,838,855 $ 7,772,216 Reconciliation: Net change in fund balance, budgetary basis $ 69,893 $ 947,445 Net change in fair value of investments 768 238,953 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 70,661 $ 1,186,398 See accompanying independent auditors’ report 120 FINANCIAL SECTION Nonmajor Governmental Funds Page 951 of 5415 Affordable Housing Economic and Innovation Zones (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 3,276,400 $ 3,276,400 $ - - - - - - - - - - - - - 911,226 35,350 (875,876) - - - - - - - - - 25,100 74,062 48,962 172,500 465,813 293,313 - - - - - - - - - - - - 936,326 109,412 (826,914) 3,448,900 3,742,213 293,313 - - - - - - - - - - - - - - - - - - - - - - - - 3,677,813 182,246 3,495,567 7,796,900 4,000,000 3,796,900 - - - - - - - - - - - - - - - - - - - - - - - - 3,677,813 182,246 3,495,567 7,796,900 4,000,000 3,796,900 (2,741,487) (72,834) 2,668,653 (4,348,000) (257,787) 4,090,213 - - - - - - - - - - - - - - - - - - 626,700 626,700 - 5,500,000 5,500,000 - - - - - - - 626,700 626,700 - 5,500,000 5,500,000 - (2,114,787) 553,866 2,668,653 1,152,000 5,242,213 4,090,213 2,116,987 1,551,880 (565,107) 8,647,600 3,521,207 (5,126,393) $ 2,200 $ 2,105,746 $ 2,103,546 $ 9,799,600 $ 8,763,420 $ (1,036,180) $ 553,866 $ 5,242,213 38,445 214,773 - - - - - - - - - - - (5,500,000) - - $ 592,311 $ (43,014) 121 FINANCIAL SECTION Nonmajor Governmental Funds Page 952 of 5415 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, 2024 Other Court Special Revenue Funds Other Public Safety Revenue Funds (Budgetary Basis)(Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ -$ - $ -$ -$ - $ - Licenses, permits and impact fees -- --- - Intergovernmental -- --- - Charges for services 1,350,000 1,082,950 (267,050) 75,000 76,167 1,167 Fines and forfeitures -- -83,300 79,592 (3,708) Interest earnings 125,000 363,557 238,557 12,500 57,664 45,164 Special assessments -- --- - Miscellaneous -- --- - Total revenues 1,475,000 1,446,507 (28,493) 170,800 213,423 42,623 Expenditures: Current: General government 3,461,600 39,957 3,421,643 -- - Public safety -- -700,000 125,055 574,945 Physical environment -- --- - Transportation -- --- - Economic environment -- --- - Human services -- --- - Culture and recreation -- --- - Debt service 100,000 83,296 16,704 -- - Capital outlay 533,250 13,187 520,063 -- - Total expenditures 4,094,850 136,440 3,958,410 700,000 125,055 574,945 Excess (deficit) of revenues over (under) expenditures (2,619,850) 1,310,067 3,929,917 (529,200) 88,368 617,568 Other financing sources (uses): Loans issued -- --- - Sale of capital assets -- --- - Insurance proceeds -- --- - Transfers in -- --- - Transfers out -- --- - Total other financing sources (uses)-- --- - Net change in fund balances (2,619,850) 1,310,067 3,929,917 (529,200) 88,368 617,568 Fund balances at beginning of year 4,890,006 6,769,542 1,879,536 1,465,200 5,612,662 4,147,462 Fund balances at end of year $ 2,270,156 $ 8,079,609 $ 5,809,453 $ 936,000 $ 5,701,030 $ 4,765,030 Reconciliation: Net change in fund balance, budgetary basis $ 1,310,067 $ 88,368 Net change in fair value of investments - 36,543 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - 617,597 Net change in fund balance, GAAP basis $ 1,310,067 $ 742,508 See accompanying independent auditors’ report 122 FINANCIAL SECTION Nonmajor Governmental Funds Page 953 of 5415 Other Special Revenue Revenue Funds Resource Recovery Park Endowment (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - 61,500 100,766 39,266 - - - - - - - - - 265,000 266,664 1,664 8,200 13,782 5,582 44,700 50,888 6,188 - - - 99,500 93,304 (6,196) 34,200 67,780 33,580 10,657,446 10,657,446 - - - - 161,000 155,840 (5,160) - - - 11,289,146 11,324,908 35,762 42,400 81,562 39,162 193,800 186,658 7,142 - - - 193,000 193,000 - - - - - - - 81,000 100 80,900 - - - - - - - - - - - - 13,870,346 13,076,666 793,680 - - - 275,600 9,499 266,101 - - - - - - - - - - - - - - - 14,532,746 13,465,823 1,066,923 81,000 100 80,900 (3,243,600) (2,140,915) 1,102,685 (38,600) 81,462 120,062 - - - - - - - 112 112 - 5 5 - 3,802 3,802 - - - 219,500 219,500 - - - - - - - - - - 219,500 223,414 3,914 - 5 5 (3,024,100) (1,917,501) 1,106,599 (38,600) 81,467 120,067 3,403,300 3,313,008 (90,292) 1,786,100 1,762,591 (23,509) $ 379,200 $ 1,395,507 $ 1,016,307 $ 1,747,500 $ 1,844,058 $ 96,558 $ (1,917,501) $ 81,467 85,044 43,000 - - - - - - - - - - - - - - $ (1,832,457) $ 124,467 123 FINANCIAL SECTION Nonmajor Governmental Funds Page 954 of 5415 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, 2024 Pepper Ranch Conservation Bank Pooled Commercial Paper Program (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees - - - - - - Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest earnings 76,900 152,533 75,633 - 56 56 Special assessments - - - - - - Miscellaneous 41,200 41,200 - - - - Total revenues 118,100 193,733 75,633 - 56 56 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment 41,200 6,590 34,610 - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - 736,000 243,999 492,001 Capital outlay - - - - - - Total expenditures 41,200 6,590 34,610 736,000 243,999 492,001 Excess (deficit) of revenues over (under) expenditures 76,900 187,143 110,243 (736,000) (243,943) 492,057 Other financing sources (uses): Loans issued - - - - 11,605 11,605 Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - - - 734,500 236,700 (497,800) Transfers out - - - - - - Total other financing sources (uses) - - - 734,500 248,305 (486,195) Net change in fund balances 76,900 187,143 110,243 (1,500) 4,362 5,862 Fund balances at beginning of year 4,089,800 3,973,261 (116,539) 1,500 3,605 2,105 Fund balances at end of year $ 4,166,700 $ 4,160,404 $ (6,296) $ - $ 7,967 $ 7,967 Reconciliation: Net change in fund balance, budgetary basis $ 187,143 $ 4,362 Net change in fair value of investments 97,028 2 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 284,171 $ 4,364 See accompanying independent auditors’ report 124 FINANCIAL SECTION Nonmajor Governmental Funds Page 955 of 5415 Gas Tax Refunding Revenue Bonds Special Obligation Refunding Revenue Bonds (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - - - - - - - 2,100,000 2,211,754 111,754 - - - - - - - - - - - - - - - 1,000 52,403 51,403 5,900 61,408 55,508 - - - - - - - - - - - - 2,101,000 2,264,157 163,157 5,900 61,408 55,508 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 13,687,600 13,671,837 15,763 23,524,300 23,483,855 40,445 - - - - - - 13,687,600 13,671,837 15,763 23,524,300 23,483,855 40,445 (11,586,600) (11,407,680) 178,920 (23,518,400) (23,422,447) 95,953 - - - - - - - - - - - - - - - - - - 11,300,000 11,300,000 - 22,518,700 22,518,700 - - - - - - - 11,300,000 11,300,000 - 22,518,700 22,518,700 - (286,600) (107,680) 178,920 (999,700) (903,747) 95,953 1,582,900 1,804,840 221,940 2,306,100 2,418,264 112,164 $ 1,296,300 $ 1,697,160 $ 400,860 $ 1,306,400 $ 1,514,517 $ 208,117 $ (107,680) $ (903,747) 33,336 54,053 - - - - - - - - - - - - - - $ (74,344) $ (849,694) 125 FINANCIAL SECTION Nonmajor Governmental Funds Page 956 of 5415 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, 2024 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 ------ Charges for services ------ Fines and forfeitures ------ Interest earnings 5,000 65,644 60,644 130,000 3,484,597 3,354,597 Special assessments ------ Miscellaneous --- 1,000,000 80,467 (919,533) Total revenues 5,000 65,644 60,644 1,130,000 3,565,064 2,435,064 Expenditures: Current: General government ---31,477,114 7,546,078 23,931,036 Public safety ---7,706,668 2,047,007 5,659,661 Physical environment --- 108,699 32,035 76,664 Transportation ------ Economic environment ------ Human services ------ Culture and recreation ---252,381 218,145 34,236 Debt service 3,732,900 3,720,625 12,275 70,000 65,141 4,859 Capital outlay ---48,952,997 10,516,936 38,436,061 Total expenditures 3,732,900 3,720,625 12,275 88,567,859 20,425,342 68,142,517 Excess (deficit) of revenues over (under) expenditures (3,727,900) (3,654,981) 72,919 (87,437,859) (16,860,278) 70,577,581 Other financing sources (uses): Loans issued ------ Sale of capital assets ------ Insurance proceeds ------ Transfers in 3,754,500 3,754,500 -53,912,600 53,912,600 - Transfers out ---(17,299,400) (2,849,400) 14,450,000 Total other financing sources (uses)3,754,500 3,754,500 -36,613,200 51,063,200 14,450,000 Net change in fund balances 26,600 99,519 72,919 (50,824,659) 34,202,922 85,027,581 Fund balances at beginning of year 2,475,900 2,475,174 (726) 75,635,664 92,939,742 17,304,078 Fund balances at end of year $ 2,502,500 $ 2,574,693 $ 72,193 $ 24,811,005 $ 127,142,664 $ 102,331,659 Reconciliation: Net change in fund balance, budgetary basis $ 99,519 $ 34,202,922 Net change in fair value of investments 57,202 1,786,043 Change in inventory -- SBITA inception related capital outlay - (310,614) SBITA inception proceeds - 310,614 Interfund transfers in -- Interfund transfers out -- Advances budgeted as transfers -- Unbudgeted funds -- Net change in fund balance, GAAP basis $ 156,721 $ 35,988,965 See accompanying independent auditors’ report 126 FINANCIAL SECTION Nonmajor Governmental Funds Page 957 of 5415 Parks Improvements County-Wide Library Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - 590,000 620,168 30,168 950,000 1,057,855 107,855 - - - - - - - - - - - - - - - - - - 179,000 1,035,645 856,645 5,800 25,641 19,841 - - - - - - - - - - - - 769,000 1,655,813 886,813 955,800 1,083,496 127,696 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,237,785 3,109,809 9,127,976 123,508 7,711 115,797 - - - - - - 12,418,524 2,313,094 10,105,430 - - - 24,656,309 5,422,903 19,233,406 123,508 7,711 115,797 (23,887,309) (3,767,090) 20,120,219 832,292 1,075,785 243,493 - - - - - - - 2,000 2,000 - - - - - - - - - 6,900,000 6,900,000 - - - - (171,436) (13,383) 158,053 (1,066,200) (1,066,200) - 6,728,564 6,888,617 160,053 (1,066,200) (1,066,200) - (17,158,745) 3,121,527 20,280,272 (233,908) 9,585 243,493 25,637,045 24,239,322 (1,397,723) 330,508 514,406 183,898 $ 8,478,300 $ 27,360,849 $ 18,882,549 $ 96,600 $ 523,991 $ 427,391 $ 3,121,527 $ 9,585 629,673 11,258 - - - - - - - - - - - - - - $ 3,751,200 $ 20,843 127 FINANCIAL SECTION Nonmajor Governmental Funds Page 958 of 5415 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, 2024 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 1,710,000 1,852,895 142,895 475,000 533,625 58,625 Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest earnings 10,700 58,454 47,754 7,000 17,640 10,640 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 1,720,700 1,911,349 190,649 482,000 551,265 69,265 Expenditures: Current: General government - - - - - - Public safety 207,283 10,614 196,669 113,622 12,376 101,246 Physical environment - - - - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - - - - Debt service - - - - - - Capital outlay - - - 103,701 24,914 78,787 Total expenditures 207,283 10,614 196,669 217,323 37,290 180,033 Excess (deficit) of revenues over (under) expenditures 1,513,417 1,900,735 387,318 264,677 513,975 249,298 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - 1 1 Insurance proceeds - - - - - - Transfers in - - - - - - Transfers out (1,628,500) (1,628,500) - (512,000) (512,000) - Total other financing sources (uses) (1,628,500) (1,628,500) - (512,000) (511,999) 1 Net change in fund balances (115,083) 272,235 387,318 (247,323) 1,976 249,299 Fund balances at beginning of year 1,695,283 1,468,715 (226,568) 503,922 450,188 (53,734) Fund balances at end of year $ 1,580,200 $ 1,740,950 $ 160,750 $ 256,599 $ 452,164 $ 195,565 Reconciliation: Net change in fund balance, budgetary basis $ 272,235 $ 1,976 Net change in fair value of investments 40,080 12,168 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 312,315 $ 14,144 See accompanying independent auditors’ report 128 FINANCIAL SECTION Nonmajor Governmental Funds Page 959 of 5415 Water Management Pelican Bay Capital Improvements (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ - $ - $ - - - - - - - - 60,319 60,319 5,221 - (5,221) - - - - - - - - - - - - 601,600 2,515,985 1,914,385 82,600 325,341 242,741 - - - 1,946,400 1,876,094 (70,306) - 640,522 640,522 14,579 14,579 - 601,600 3,216,826 2,615,226 2,048,800 2,216,014 167,214 - - - - - - - - - - - - 9,207,902 6,533,350 2,674,552 1,412,543 1,381,357 31,186 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 63,865,995 21,589,436 42,276,559 11,350,864 5,049,297 6,301,567 73,073,897 28,122,786 44,951,111 12,763,407 6,430,654 6,332,753 (72,472,297) (24,905,960) 47,566,337 (10,714,607) (4,214,640) 6,499,967 - - - 4,004,000 2,988,395 (1,015,605) - - - - - - - - - - - - 8,500,000 8,500,000 - 993,400 1,015,655 22,255 (9,781,133) (5,911,425) 3,869,708 (360,600) (283,327) 77,273 (1,281,133) 2,588,575 3,869,708 4,636,800 3,720,723 (916,077) (73,753,430) (22,317,385) 51,436,045 (6,077,807) (493,917) 5,583,890 77,194,378 72,245,968 (4,948,410) 7,262,592 6,369,758 (892,834) $ 3,440,948 $ 49,928,583 $ 46,487,635 $ 1,184,785 $ 5,875,841 $ 4,691,056 $ (22,317,385) $ (493,917) 1,792,969 188,862 - - - - - - - - - - - - - - $ (20,524,416) $ (305,055) 129 FINANCIAL SECTION Nonmajor Governmental Funds Page 960 of 5415 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, 2024 Parks Impact Districts Road Impact Districts (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees 10,800,000 10,685,396 (114,604) 24,984,000 28,605,005 3,621,005 Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest earnings 211,500 2,160,830 1,949,330 993,500 5,233,008 4,239,508 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 11,011,500 12,846,226 1,834,726 25,977,500 33,838,013 7,860,513 Expenditures: Current: General government - - - - - - Public safety - - - - - - Physical environment - - - - - - Transportation - - - 4,058,733 670,138 3,388,595 Economic environment - - - - - - Human services - - - - - - Culture and recreation 217,394 13,291 204,103 - - - Debt service - - - - - - Capital outlay 57,482,651 4,059,008 53,423,643 138,252,491 14,828,453 123,424,038 Total expenditures 57,700,045 4,072,299 53,627,746 142,311,224 15,498,591 126,812,633 Excess (deficit) of revenues over (under) expenditures (46,688,545) 8,773,927 55,462,472 (116,333,724) 18,339,422 134,673,146 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - 102 102 - 19,577 19,577 Insurance proceeds - - - - - - Transfers in 1,887,335 1,887,335 - - - - Transfers out (4,634,000) (4,634,000) - (10,959,738) (1,500,000) 9,459,738 Total other financing sources (uses) (2,746,665) (2,746,563) 102 (10,959,738) (1,480,423) 9,479,315 Net change in fund balances (49,435,210) 6,027,364 55,462,574 (127,293,462) 16,858,999 144,152,461 Fund balances at beginning of year 56,725,345 56,082,233 (643,112) 130,655,763 127,426,143 (3,229,620) Fund balances at end of year $ 7,290,135 $ 62,109,597 $ 54,819,462 $ 3,362,301 $ 144,285,142 $ 140,922,841 Reconciliation: Net change in fund balance, budgetary basis $ 6,027,364 $ 16,858,999 Net change in fair value of investments 1,363,897 3,147,688 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 7,391,261 $ 20,006,687 See accompanying independent auditors’ report 130 FINANCIAL SECTION Nonmajor Governmental Funds Page 961 of 5415 Road Construction Government Facilities Impact Fees (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ 16,291,800 $ 18,523,675 $ 2,231,875 $ - $ - $ - - - - 3,040,000 3,511,978 471,978 4,211,300 5,072,153 860,853 - - - 107,900 151,232 43,332 - - - - - - - - - 500,000 2,769,897 2,269,897 25,000 130,469 105,469 - - - - - - 600,566 747,456 146,890 - - - 21,711,566 27,264,413 5,552,847 3,065,000 3,642,447 577,447 - - - 80,904 11,437 69,467 - - - - - - - - - - - - 26,567,542 15,663,753 10,903,789 - - - - - - - - - - - - - - - - - - - - - 210,000 207,877 2,123 - - - 92,520,140 4,406,634 88,113,506 - - - 119,297,682 20,278,264 99,019,418 80,904 11,437 69,467 (97,586,116) 6,986,149 104,572,265 2,984,096 3,631,010 646,914 - - - - - - - 14,542 14,542 - 4 4 100,000 22,097 (77,903) - - - 22,800,000 22,800,000 - 1,383,900 1,383,900 - (14,464,639) (11,431,558) 3,033,081 (4,631,900) (4,631,900) - 8,435,361 11,405,081 2,969,720 (3,248,000) (3,247,996) 4 (89,150,755) 18,391,230 107,541,985 (263,904) 383,014 646,918 91,191,284 63,384,299 (27,806,985) 3,314,104 3,176,168 (137,936) $ 2,040,529 $ 81,775,529 $ 79,735,000 $ 3,050,200 $ 3,559,182 $ 508,982 $ 18,391,230 $ 383,014 1,543,828 82,583 - - - - - - - - - - - - - - $ 19,935,058 $ 465,597 131 FINANCIAL SECTION Nonmajor Governmental Funds Page 962 of 5415 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, 2024 Law Enforcement Impact Fees All Terrain Vehicle Park (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance Revenues: Taxes $ - $ - $ - $ - $ - $ - Licenses, permits and impact fees 1,900,000 2,156,407 256,407 - - - Intergovernmental - - - - - - Charges for services - - - - - - Fines and forfeitures - - - - - - Interest earnings 18,100 131,708 113,608 15,000 121,111 106,111 Special assessments - - - - - - Miscellaneous - - - - - - Total revenues 1,918,100 2,288,115 370,015 15,000 121,111 106,111 Expenditures: Current: General government - - - - - - Public safety 114,117 10,800 103,317 - - - Physical environment - - - - - - Transportation - - - - - - Economic environment - - - - - - Human services - - - - - - Culture and recreation - - - 222,220 450 221,770 Debt service - - - - - - Capital outlay 200 - 200 - - - Total expenditures 114,317 10,800 103,517 222,220 450 221,770 Excess (deficit) of revenues over (under) expenditures 1,803,783 2,277,315 473,532 (207,220) 120,661 327,881 Other financing sources (uses): Loans issued - - - - - - Sale of capital assets - - - - - - Insurance proceeds - - - - - - Transfers in - - - - - - Transfers out (1,688,600) (1,688,600) - - - - Total other financing sources (uses) (1,688,600) (1,688,600) - - - - Net change in fund balances 115,183 588,715 473,532 (207,220) 120,661 327,881 Fund balances at beginning of year 3,138,017 3,249,080 111,063 3,216,020 3,168,380 (47,640) Fund balances at end of year $ 3,253,200 $ 3,837,795 $ 584,595 $ 3,008,800 $ 3,289,041 $ 280,241 Reconciliation: Net change in fund balance, budgetary basis $ 588,715 $ 120,661 Net change in fair value of investments 76,817 77,191 Change in inventory - - SBITA inception related capital outlay - - SBITA inception proceeds - - Interfund transfers in - - Interfund transfers out - - Advances budgeted as transfers - - Unbudgeted funds - - Net change in fund balance, GAAP basis $ 665,532 $ 197,852 See accompanying independent auditors’ report 132 FINANCIAL SECTION Nonmajor Governmental Funds Page 963 of 5415 Amateur Sports Complex Other Capital Projects (Budgetary Basis) (Budgetary Basis) Budget Actual Variance Budget Actual Variance $ - $ - $ - $ 17,100 $ 17,312 $ 212 - - - 9,000 11,994 2,994 - - - - - - - - - - - - - - - - - - 150,000 374,537 224,537 8,800 476,169 467,369 - - - - - - - 200,000 200,000 - - - 150,000 574,537 424,537 34,900 505,475 470,575 - - - 50,509 509,205 (458,696) - - - 108,917 39,985 68,932 - - - - - - - - - - - - - - - - - - - - - - - - - 151,299 (151,299) 258,263 521,460 (263,197) - - - - - - 12,197,248 380,594 11,816,654 9,733,080 311,155 9,421,925 12,197,248 531,893 11,665,355 10,150,769 1,381,805 8,768,964 (12,047,248) 42,644 12,089,892 (10,115,869) (876,330) 9,239,539 - - - - - - - - - - - - - - - - - - 4,198,200 4,198,200 - 201,800 200,330 (1,470) (500,000) - 500,000 (101,100) (7,724) 93,376 3,698,200 4,198,200 500,000 100,700 192,606 91,906 (8,349,048) 4,240,844 12,589,892 (10,015,169) (683,724) 9,331,445 8,969,135 (9,708,812) (18,677,947) 12,777,969 12,788,795 10,826 $ 620,087 $ (5,467,968) $ (6,088,055) $ 2,762,800 $ 12,105,071 $ 9,342,271 $ 4,240,844 $ (683,724) 251,715 307,179 - - - - - - - - - - - - - - $ 4,492,559 $ (376,545) 133 FINANCIAL SECTION Nonmajor Governmental Funds Page 964 of 5415 Page 965 of 5415 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. 135 FINANCIAL SECTION Nonmajor Enterprise Funds Page 966 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS September 30, 2024 Airport Collier Area Total Nonmajor Authority Transit Enterprise Funds ASSETS Current assets: Cash and investments $ 8,354,055 $ 1,349,452 $ 9,703,507 Receivables: Trade, net 16,140 22,804 38,944 Interest 31,048 9,223 40,271 Leases 211,606 - 211,606 Due from other funds - 22,024 22,024 Due from other governments 2,182 1,079 3,261 Inventory 177,886 - 177,886 Restricted assets: Cash and investments 25,016 411,630 436,646 Due from other governments 551,982 2,961,004 3,512,986 Total current assets 9,369,915 4,777,216 14,147,131 Noncurrent assets: Receivables: Leases 2,629,565 - 2,629,565 Capital assets: Land and nondepreciable capital assets 2,769,982 6,674,806 9,444,788 Depreciable capital assets, net 46,794,226 19,255,240 66,049,466 Total noncurrent assets 52,193,773 25,930,046 78,123,819 Total assets 61,563,688 30,707,262 92,270,950 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB 20,491 5,392 25,883 Deferred outflows of resources related to pensions 317,864 105,607 423,471 Total deferred outflows of resources 338,355 110,999 449,354 LIABILITIES Current liabilities: Accounts payable 328,709 868,146 1,196,855 Wages payable 93,829 31,610 125,439 Retainage payable 4,224 - 4,224 Due to other funds 2,800 - 2,800 Due to other governments 3,826 164 3,990 Unearned revenues 3,117 - 3,117 Compensated absences 75,990 30,306 106,296 Total OPEB Liability 5,380 1,416 6,796 Net pension liability 2,787 696 3,483 Liabilities payable from restricted assets Accounts payable 337,737 1,462,311 1,800,048 Retainage payable 36,257 - 36,257 Due to other governments - 137,060 137,060 Refundable deposits 9,826 100 9,926 Total current liabilities 904,482 2,531,809 3,436,291 Noncurrent liabilities: Compensated absences 18,997 7,576 26,573 Total OPEB liability 84,296 22,183 106,479 Net pension liability 1,354,529 419,572 1,774,101 Total noncurrent liabilities 1,457,822 449,331 1,907,153 Total liabilities 2,362,304 2,981,140 5,343,444 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases 2,752,492 - 2,752,492 Deferred inflows of resources related to OPEB 8,133 2,140 10,273 Deferred inflows of resources related to pensions 155,916 46,183 202,099 Total deferred inflows of resources 2,916,541 48,323 2,964,864 NET POSITION Net investment in capital assets 49,175,138 25,368,804 74,543,942 Restricted for: Grants and other purposes 530,915 2,334,405 2,865,320 Unrestricted 6,917,145 85,589 7,002,734 Total net position $ 56,623,198 $ 27,788,798 $ 84,411,996 See accompanying independent auditors’ report 136 FINANCIAL SECTION Nonmajor Enterprise Funds Page 967 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2024 Airport Collier Area Total Nonmajor Authority Transit Enterprise Funds Operating revenues: Charges for services $ 10,232,540 $ 1,185,371 $ 11,417,911 Miscellaneous 11,912 82,176 94,088 Total operating revenues 10,244,452 1,267,547 11,511,999 Operating expenses: Personal services 1,941,731 615,118 2,556,849 General and administrative 6,832,695 14,686,105 21,518,800 Depreciation and amortization 2,641,043 2,213,634 4,854,677 Total operating expenditures 11,415,469 17,514,857 28,930,326 Operating loss (1,171,017) (16,247,310) (17,418,327) Non-operating revenues (expenses): Operating grants and contributions - 3,893,034 3,893,034 Interest earnings 558,619 178,528 737,147 Insurance reimbursement - 105 105 Gain on disposal of capital assets 11,500 (666) 10,834 Total non-operating revenues (expenses) 570,119 4,071,001 4,641,120 Loss before contributions and transfers (600,898) (12,176,309) (12,777,207) Capital grants and contributions 2,067,191 4,759,169 6,826,360 Transfers in - 5,808,702 5,808,702 Transfers out (290,700) - (290,700) Total transfers and contributions 1,776,491 10,567,871 12,344,362 Change in net position 1,175,593 (1,608,438) (432,845) Net position - beginning 55,447,605 29,397,236 84,844,841 Net position - ending $ 56,623,198 $ 27,788,798 $ 84,411,996 See accompanying independent auditors’ report 137 FINANCIAL SECTION Nonmajor Enterprise Funds Page 968 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS For The Fiscal Year Ended September 30, 2024 Airport Collier Area Total Nonmajor Authority Transit Enterprise Funds Cash flows from operating activities: Cash received for services $ 10,226,646 $ 1,261,748 $ 11,488,394 Cash payments for goods and services (6,316,702) (10,720,859) (17,037,561) Cash payments to employees (1,872,372) (596,880) (2,469,252) Cash payments for interfund services (665,110) (3,774,450) (4,439,560) Net cash provided by (used for) operating activities 1,372,462 (13,830,441) (12,457,979) Cash flows from non-capital financing activities: Cash received from operating grants -3,535,540 3,535,540 Cash transfers from other funds 1,240,262 5,815,396 7,055,658 Cash transfers to other funds (1,528,162) -(1,528,162) Net cash provided by (used for) non-capital financing activities (287,900) 9,350,936 9,063,036 Cash flows from capital and related financing activities: Receipts from insurance reimbursements -105 105 Proceeds from disposal of capital assets 11,500 6,293 17,793 Proceeds from capital grants 1,518,740 4,418,369 5,937,109 Proceeds from leasing activities 204,245 -204,245 Payments for capital acquisitions (2,163,604) (1,156,280) (3,319,884) Net cash provided by (used for) capital and related financing activities (429,119) 3,268,487 2,839,368 Cash flows from investing activities: Interest on investments 537,132 174,094 711,226 Net cash provided by investing activities 537,132 174,094 711,226 Net increase (decrease) in cash and investments 1,192,575 (1,036,924) 155,651 Cash and investments, October 1, 2023 7,186,496 2,798,006 9,984,502 Cash and investments, September 30, 2024 $ 8,379,071 $ 1,761,082 $ 10,140,153 Cash and investments $ 8,354,055 $ 1,349,452 $ 9,703,507 Cash and investments - restricted 25,016 411,630 436,646 Cash and investments, September 30, 2024 $ 8,379,071 $ 1,761,082 $ 10,140,153 Operating loss $ (1,171,017) $ (16,247,310) $ (17,418,327) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation and amortization expense 2,641,043 2,213,634 4,854,677 Net changes in assets and liabilities: Trade receivable (11,573) (5,799) (17,372) Inventory 43,730 -43,730 Prepaid costs -21,350 21,350 Accounts payable 37,905 175,319 213,224 Retainage payable 4,224 -4,224 Wages payable 13,071 3,330 16,401 Due to other governments (2,318) (5,873) (8,191) Compensated absences (11,541) 1,486 (10,055) Unearned revenue (6,233) -(6,233) Total OPEB liability 23,897 5,327 29,224 Deferred outflows of resources related to OPEB (15,336) (3,960) (19,296) Deferred inflows of resources related to OPEB (3,261) (1,025) (4,286) Net pension liability (44,875) (16,318) (61,193) Deferred outflows of resources related to pensions 5,676 (1,602) 4,074 Deferred inflows of resources related to pensions 101,728 31,000 132,728 Deferred inflows of resources related to leases (232,658) -(232,658) Total adjustments 2,543,479 2,416,869 4,960,348 Net cash provided by (used for) operating activities $ 1,372,462 $ (13,830,441) $ (12,457,979) Non-cash investing, capital and financing activities: Change in fair value of investments $ 178,840 $ 69,098 $ 247,938 Change in capital related grant receivable 548,451 325,300 873,751 Capital related accounts payable 352,813 561,242 914,055 Capital related retainage 36,257 -36,257 See accompanying independent auditors’ report 138 FINANCIAL SECTION Nonmajor Enterprise Funds Page 969 of 5415 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. 139 FINANCIAL SECTION Internal Service Funds Page 970 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS September 30, 2024 Self- Sheriff’s Self- Fleet Motor Pool Information Insurance Insurance Management Capital Recovery Technology Total ASSETS Current assets: Cash and investments $ 43,754,367 $ 17,950,285 $ 2,894,777 $ 25,801,144 $ 13,868,318 $ 104,268,891 Receivables: Trade, net 1,321,502 297,398 - - - 1,618,900 Interest 198,351 40,152 8,052 96,515 56,023 399,093 Due from other funds 24,265 - 100 - - 24,365 Due from other governments 313 - 251,017 - 3,597 254,927 Inventory - - 718,370 - - 718,370 Prepaid costs 4,653,356 - - - 2,704,919 7,358,275 Total current assets 49,952,154 18,287,835 3,872,316 25,897,659 16,632,857 114,642,821 Noncurrent assets: Capital assets: Land and nondepreciable capital assets - - 200,039 - - 200,039 Depreciable capital assets, net 1,302,531 - 7,085,496 10,438,851 5,859,937 24,686,815 Total noncurrent assets 1,302,531 - 7,285,535 10,438,851 5,859,937 24,886,854 Total assets 51,254,685 18,287,835 11,157,851 36,336,510 22,492,794 139,529,675 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to OPEB 19,412 - 33,433 1,078 49,611 103,534 Deferred outflows of resources related to pensions 350,411 - 632,291 15,379 1,013,202 2,011,283 Total deferred outflows of resources 369,823 - 665,724 16,457 1,062,813 2,114,817 LIABILITIES Current liabilities: Accounts payable 784,164 - 394,021 242,116 720,278 2,140,579 Wages payable 107,609 - 191,579 4,216 301,758 605,162 Due to other funds 1,519 - 5,385 - 7,200 14,104 Due to other governments 4,994 - 60,321 - - 65,315 Unearned revenues 48,537 118,851 - - - 167,388 Self-insurance claims payable 9,023,434 4,311,000 - - - 13,334,434 Compensated absences 105,519 - 160,667 670 312,835 579,691 Total OPEB Liability 5,097 - 8,778 283 13,026 27,184 Net pension liability 2,525 - 4,325 145 6,272 13,267 Lease payable 280 - - - - 280 SBITA liability 112,934 - - - 1,814,754 1,927,688 Total current liabilities 10,196,612 4,429,851 825,076 247,430 3,176,123 18,875,092 Noncurrent liabilities: Self-insurance claims payable 2,324,900 - - - - 2,324,900 Compensated absences 26,380 - 40,167 168 78,209 144,924 SBITA liability 1,075,060 - - - 597,620 1,672,680 Total OPEB liability 79,859 - 137,535 4,437 204,084 425,915 Net pension liability 1,420,583 - 2,532,534 66,908 3,970,394 7,990,419 Total noncurrent liabilities 4,926,782 - 2,710,236 71,513 4,850,307 12,558,838 Total liabilities 15,123,394 4,429,851 3,535,312 318,943 8,026,430 31,433,930 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to OPEB 7,704 - 13,269 428 19,690 41,091 Deferred inflows of resources related to pensions 158,472 - 280,267 7,796 432,899 879,434 Total deferred inflows of resources 166,176 - 293,536 8,224 452,589 920,525 NET POSITION Net investment in capital assets 114,257 - 7,232,866 10,212,089 3,447,563 21,006,775 Unrestricted 36,220,681 13,857,984 761,861 25,813,711 11,629,025 88,283,262 Total net position $ 36,334,938 $ 13,857,984 $ 7,994,727 $ 36,025,800 $ 15,076,588 $ 109,290,037 See accompanying independent auditors’ report 140 FINANCIAL SECTION Internal Service Funds Page 971 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2024 Self- Sheriff’s Self- Fleet Motor Pool Information Insurance Insurance Management Capital Recovery Technology Total Operating revenues: Charges for services $ 67,532,318 $ 32,961,240 $ 13,388,309 $ 4,622,500 $ 9,627,900 $ 128,132,267 Miscellaneous 3,016,697 - 18,801 - - 3,035,498 Total operating revenues 70,549,015 32,961,240 13,407,110 4,622,500 9,627,900 131,167,765 Operating expenses: Personal services 2,127,106 - 3,837,634 81,793 5,690,740 11,737,273 General and administrative 17,143,424 4,114,199 8,882,750 40,893 3,967,050 34,148,316 Insurance claims paid 58,076,156 30,241,294 - - - 88,317,450 Depreciation and amortization 192,074 - 654,426 2,231,341 3,298,786 6,376,627 Total operating expenditures 77,538,760 34,355,493 13,374,810 2,354,027 12,956,576 140,579,666 Operating income (loss) (6,989,745) (1,394,253) 32,300 2,268,473 (3,328,676) (9,411,901) Non-operating revenues (expenses): Interest earnings 3,085,052 1,035,723 147,200 1,502,321 720,854 6,491,150 Insurance reimbursement 524,828 - 1,225 14,338 - 540,391 Interest expense (35,696) - - - (106,524) (142,220) Gain on disposal of capital assets 176 - 127 196,250 3,744 200,297 Total non-operating revenues (expenses) 3,574,360 1,035,723 148,552 1,712,909 618,074 7,089,618 Income (loss) before contributions and transfers (3,415,385) (358,530) 180,852 3,981,382 (2,710,602) (2,322,283) Transfers in 1,250,000 - - 1,468,400 7,220,900 9,939,300 Total transfers and contributions 1,250,000 - - 1,468,400 7,220,900 9,939,300 Change in net position (2,165,385) (358,530) 180,852 5,449,782 4,510,298 7,617,017 Net position - beginning 38,500,323 14,216,514 7,813,875 30,576,018 10,566,290 101,673,020 Net position - ending $ 36,334,938 $ 13,857,984 $ 7,994,727 $ 36,025,800 $ 15,076,588 $ 109,290,037 See accompanying independent auditors’ report 141 FINANCIAL SECTION Internal Service Funds Page 972 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2024 Self- Sheriff’s Self- Fleet Motor Pool Information Insurance Insurance Management Capital Recovery Technology Total Cash flows from operating activities: Cash received from other funds for services $ 60,836,471 $ 31,350,000 $ 12,973,630 $ 4,622,500 $ 9,627,900 $ 119,410,501 Cash received from other governments for services - - 439,350 - - 439,350 Cash received from employees for services 8,600,548 - - - - 8,600,548 Cash received from retirees for services 689,947 1,621,896 - - - 2,311,843 Cash payments on behalf of retirees (2,620,265) - - - - (2,620,265) Cash payments for goods and services (14,343,468) (4,114,199) (8,638,970) (18,139) (4,060,056) (31,174,832) Cash payments for self insurance claims (56,745,475) (29,484,077) - - - (86,229,552) Cash payments to employees (2,030,195) - (3,675,503) (81,761) (5,521,540) (11,308,999) Cash payments for interfund services (799,918) - (382,235) (7,400) (355,050) (1,544,603) Net cash provided by (used for) operating activities (6,412,355) (626,380) 716,272 4,515,200 (308,746) (2,116,009) Cash flows from non-capital financing activities: Cash transfers from other funds 1,250,000 - - 1,468,400 7,220,900 9,939,300 Net cash provided by non-capital financing activities 1,250,000 - - 1,468,400 7,220,900 9,939,300 Cash flows from capital and related financing activities: Receipts from insurance reimbursements 554,551 - 1,225 14,338 - 570,114 Proceeds from disposal of capital assets 176 - 839 196,250 3,744 201,009 Payments for capital acquisitions - - (532,946) (4,079,846) (298,308) (4,911,100) Principal payments on leases (3,335) - - - - (3,335) Principal payments on SBITA (146,972) - - - (1,732,273) (1,879,245) Interest and fiscal agent fees paid (35,696) - - - (106,524) (142,220) Net cash provided by (used for) capital and related financing activities 368,724 - (530,882) (3,869,258) (2,133,361) (6,164,777) Cash flows from investing activities: Interest on investments 2,948,884 1,022,397 141,622 1,434,195 677,991 6,225,089 Net cash provided by investing activities 2,948,884 1,022,397 141,622 1,434,195 677,991 6,225,089 Net increase (decrease) in cash and investments (1,844,747) 396,017 327,012 3,548,537 5,456,784 7,883,603 Cash and investments, October 1, 2023 45,599,114 17,554,268 2,567,765 22,252,607 8,411,534 96,385,288 Cash and investments, September 30, 2024 $ 43,754,367 $ 17,950,285 $ 2,894,777 $ 25,801,144 $ 13,868,318 $ 104,268,891 142 FINANCIAL SECTION Internal Service Funds Page 973 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Fiscal Year Ended September 30, 2024 Sheriff’s Motor Pool Self- Self- Fleet Capital Information Insurance Insurance Management Recovery Technology Total Operating income (loss)$ (6,989,745) $ (1,394,253) $ 32,300 $ 2,268,473 $ (3,328,676) $ (9,411,901) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation and amortization expense 192,074 - 654,426 2,231,341 3,298,786 6,376,627 Net changes in assets and liabilities: Trade receivable (188,395) 250,217 5,428 - - 67,250 Due from other funds 7,957 - (100) - - 7,857 Due from other governments - - 442 - - 442 Inventory - - (6,486) - - (6,486) Prepaid costs (219,858) - - - (732,648) (952,506) Accounts payable (412,506) - (165,351) 15,354 277,392 (285,111) Wages payable 18,529 - 24,273 (221) 41,791 84,372 Due to other funds 1,519 - 5,385 - 7,200 14,104 Due to other governments (29) - 28,097 - - 28,068 Compensated absences 27,968 - 34,121 (225) 31,467 93,331 Unearned revenue 20,885 10,656 - - - 31,541 Self-insurance claims payable 1,078,832 507,000 - - - 1,585,832 Total OPEB liability 26,486 - 36,681 1,066 63,625 127,858 Deferred outflows of resources related to OPEB (14,830) - (24,842) (792) (37,584) (78,048) Deferred inflows of resources related to OPEB (2,424) - (5,722) (205) (6,897) (15,248) Net pension liability (82,434) - (72,228) (4,999) (240,841) (400,502) Deferred outflows of resources related to pensions 14,342 - (16,641) 686 17,801 16,188 Deferred inflows of resources related to pensions 109,274 - 186,489 4,722 299,838 600,323 Total adjustments 577,390 767,873 683,972 2,246,727 3,019,930 7,295,892 Net cash provided by (used for) operating activities $ (6,412,355) $ (626,380) $ 716,272 $ 4,515,200 $ (308,746) $ (2,116,009) Non-cash investing, capital and financing activities: Change in fair value of investments $ 1,176,105 $ 771,986 $ 60,691 $ 546,700 $ 219,613 $ 2,775,095 SBITA right-to-use assets acquired - - - - 3,971,610 3,971,610 Capital related accounts payable - - 52,669 226,762 - 279,431 See accompanying independent auditors’ report 143 FINANCIAL SECTION Internal Service Funds Page 974 of 5415 Page 975 of 5415 FIDUCIARY FUNDS CLERK OF COURTS CUSTODIAL FUND – To account for monies held in Trust by the Clerk of the Circuit Court prior to disbursement. SHERIFF CUSTODIAL FUND – To account for monies held in a custodial capacity by the Sheriff. TAX COLLECTOR CUSTODIAL FUND – To account for assets held by the Tax Collector prior to legal disbursement. 145 FINANCIAL SECTION Fiduciary Funds Page 976 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS September 30, 2024 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ASSETS Cash and investments $ 21,980,470 $ 408,007 $ 5,274,667 $ 27,663,144 Trade receivable, net - 12,781 9,822 22,603 Due from other governments - - 87,922 87,922 Total assets $ 21,980,470 $ 420,788 $ 5,372,411 $ 27,773,669 LIABILITIES Due to other governments $ 4,362,084 $ 81,477 $ 5,002,641 $ 9,446,202 Due to individuals - 10,137 369,770 379,907 Total liabilities $ 4,362,084 $ 91,614 $ 5,372,411 $ 9,826,109 FIDUCIARY NET POSITION Restricted for individuals and governments $ 17,618,386 $ 329,174 $ - $ 17,947,560 See accompanying independent auditors’ report 146 FINANCIAL SECTION Fiduciary Funds Page 977 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS For The Fiscal Year Ended September 30, 2024 Clerk Tax of Courts Sheriff Collector Custodial Fund Custodial Fund Custodial Fund Total ADDITIONS: Contributions for individuals $ 7,860,181 $ 3,902,479 $ - $ 11,762,660 Fees collected for other governments 152,323,225 292,898 998,640,928 1,151,257,051 Miscellaneous - 16,323 1,104,018 1,120,341 Total additions 160,183,406 4,211,700 999,744,946 1,164,140,052 DEDUCTIONS: Beneficiary payments to individuals 9,258,275 3,903,151 - 13,161,426 Payment of fees to other governments 152,517,809 174,402 999,744,946 1,152,437,157 Payments to other entities - 368,947 - 368,947 Total deductions 161,776,084 4,446,500 999,744,946 1,165,967,530 Net decrease in fiduciary net position (1,592,678) (234,800) - (1,827,478) Fiduciary net position - beginning of year 19,211,064 563,974 - 19,775,038 Fiduciary net position - end of year $ 17,618,386 $ 329,174 $ - $ 17,947,560 147 FINANCIAL SECTION Fiduciary Funds Page 978 of 5415 Page 979 of 5415 COMPONENT UNITS 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 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 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 EDUCATIONAL FACILITIES AUTHORITY – The authority was established for the purpose of assisting institutions of higher education in the construction, financing and refinancing of projects. 149 FINANCIAL SECTION Component Units Page 980 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF NET POSITION COMPONENT UNITS September 30, 2024 Industrial Health Housing Educational Development Facilities Finance Facilities Authority Authority Authority Authority Total ASSETS Cash and investments $ 238,576 $41,242 $231,199 $ 59,477 $ 570,494 Total assets $ 238,576 $41,242 $231,199 $ 59,477 $ 570,494 NET POSITION Unrestricted $ 238,576 $41,242 $231,199 $ 59,477 $ 570,494 Total Net Position $ 238,576 $41,242 $231,199 $ 59,477 $ 570,494 See accompanying independent auditors’ report 150 FINANCIAL SECTION Component Units Page 981 of 5415 COLLIER COUNTY, FLORIDA COMBINING STATEMENT OF ACTIVITIES COMPONENT UNITS For The Fiscal Year Ended September 30, 2024 Net (Expense) Revenue and Changes Program Revenues in Net Position Fees, Fines and Operating Grants Governmental Functions/Programs Expenses Charges for Services and Contributions Activities Industrial Development Authority $ 7,695 $ - $ 152,580 $ 144,885 Health Facilities Authority 6,175 - - (6,175) Housing Finance Authority 53,590 - - (53,590) Educational Facilities Authority 6,175 - - (6,175) Total $ 73,635 $ - $ 152,580 $ 78,945 General revenues: Miscellaneous revenue 7,473 Total general revenues 7,473 Change in net position 86,418 Net position - beginning 484,076 Net position - ending $ 570,494 See accompanying independent auditors’ report 151 FINANCIAL SECTION Component Units Page 982 of 5415 Page 983 of 5415 OTHER SUPPLEMENTAL INFORMATION Schedule of receipts and expenditures of funds related to the Deepwater Horizon Oil Spill. 153 FINANCIAL SECTION Other Supplemental Information Page 984 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF RECEIPTS AND EXPENDITURES OF FUNDS RELATED TO THE DEEPWATER HORIZON OIL SPILL For The Fiscal Year Ended September 30, 2024 Amount Amount Received Expended in the in the 2024 2024 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 2024 fiscal year. 154 FINANCIAL SECTION Other Supplemental Information Page 985 of 5415 STATISTICAL SECTION Page 986 of 5415 Page 987 of 5415 FINANCIAL TRENDS These schedules contain trend information to help the reader understand how the government’s financial perfomance and wellbeing have changed over time. Net Position by Component ��158 Change in Net Position ��160 Governmental Activities Tax Revenues by Source ��162 Fund Balances of Governmental Funds ��163 Changes in Fund Balances of Governmental Funds ��164 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 ��166 Property Tax Rates – All Direct and Overlapping Governments ��168 Principal Taxpayers County-Wide ��169 Property Tax Levies and Collections ��170 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 ��172 Legal Debt Margin Information ��174 Direct, Overlapping and Underlapping Governmental Activities Debt��174 Pledged-Revenue Coverage ��175 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 ��176 Principal Employers ��177 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 ��178 Operating Indicators by Function ��179 Capital Asset Statistics by Function ��180 157 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. 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. STATISTICAL SECTION Page 988 of 5415 COLLIER COUNTY, FLORIDA NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 Governmental Activities: Net investment in capital assets $ 1,671,210 $ 1,604,950 $ 1,509,272 $ 1,396,962 $ 1,331,163 $ 1,302,980 Restricted 1,040,052 932,472 782,820 660,442 559,050 478,719 Unrestricted 179,505 99,589 87,851 42,882 (23,652) (32,158) Total governmental activities net position $ 2,890,767 $ 2,637,011 $ 2,379,943 $ 2,100,286 $ 1,866,561 $ 1,749,541 Business-type Activities: Net investment in capital assets $ 912,382 $ 882,904 $ 870,966 $ 846,257 $ 818,092 $ 777,814 Restricted 49,699 46,639 48,511 50,827 42,036 39,371 Unrestricted 353,649 296,239 240,180 241,239 215,623 205,756 Total business-type activities net position $ 1,315,730 $ 1,225,782 $ 1,159,657 $ 1,138,323 $ 1,075,751 $ 1,022,941 Primary Government: Net investment in capital assets $ 2,583,592 $ 2,487,854 $ 2,380,238 $ 2,243,219 $ 2,149,255 $ 2,080,794 Restricted 1,089,751 979,111 831,331 711,269 601,086 518,090 Unrestricted 533,154 395,828 328,031 284,121 191,971 173,598 Total primary government net position $ 4,206,497 $ 3,862,793 $ 3,539,600 $ 3,238,609 $ 2,942,312 $ 2,772,482 158 STATISTICAL SECTION Page 989 of 5415 Fiscal Year 2018 2017 2016 2015 $ 1,287,184 $ 1,257,685 $ 1,225,520 $ 1,217,176 362,045 336,922 327,968 298,360 (29,328) (24,011) 2,478 13,109 $ 1,619,901 $ 1,570,596 $ 1,555,966 $ 1,528,645 $ 763,259 $ 741,912 $ 723,000 $ 714,239 31,982 32,619 35,760 31,511 143,198 168,602 169,287 165,128 $ 938,439 $ 943,133 $ 928,047 $ 910,878 $ 2,050,443 $ 1,999,597 $ 1,948,520 $ 1,931,415 394,027 369,541 363,728 329,871 113,870 144,591 171,765 178,237 $ 2,558,340 $ 2,513,729 $ 2,484,013 $ 2,439,523 159 STATISTICAL SECTION Page 990 of 5415 COLLIER COUNTY, FLORIDA CHANGE IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 Expenses Governmental activities: General government $ 175,663 $ 179,599 $ 138,961 $ 129,810 $ 135,978 $ 134,018 Public safety 320,976 330,024 274,244 237,435 266,736 254,341 Transportation 97,304 97,579 94,079 88,679 89,954 88,200 Culture and recreation 83,129 86,605 70,800 59,348 56,900 59,401 Other activities 114,212 117,725 97,039 114,798 54,967 52,500 Interest on long-term debt 10,387 10,320 10,818 14,601 12,321 13,223 Total governmental activities expenses $ 801,671 $ 821,852 $ 685,941 $ 644,671 $ 616,856 $ 601,683 Business-type activities: Water and Sewer $ 203,338 $ 190,639 $ 175,794 $ 166,035 $ 155,368 $ 153,602 Solid Waste 61,695 85,475 51,071 51,896 49,158 47,529 Emergency Medical Services 49,100 43,838 41,626 27,782 33,761 34,871 Airport Authority 11,480 11,762 11,612 7,805 6,168 6,361 Mass Transit 17,767 17,200 14,766 13,638 13,716 13,090 Total business-type activities expenses 343,380 348,914 294,869 267,156 258,171 255,453 Total primary government expenses $ 1,145,051 $ 1,170,766 $ 980,810 $ 911,827 $ 875,027 $ 857,136 Program Revenues Governmental activities: Charges for services: General government $46,430 $44,893 $46,133 $ 40,237 $39,204 $39,981 Public safety 26,299 25,318 28,900 29,790 25,037 26,137 Transportation 1,776 1,532 1,700 1,897 1,425 1,206 Culture and recreation 11,336 10,483 10,015 7,617 5,055 7,808 Other activities 1,866 1,513 1,257 3,566 1,959 1,862 Operating Grants and Contributions 82,431 73,672 79,246 98,708 34,025 30,313 Capital Grants and Contributions 61,284 52,102 132,702 50,311 47,343 56,268 Total governmental activities program revenues 231,422 209,513 299,953 232,126 154,048 163,575 Business-type activities: Charges for services: Water and Sewer $ 221,031 $ 192,611 $ 177,260 $ 168,017 $ 162,702 $ 155,839 Solid Waste 71,201 64,854 60,340 59,078 53,885 51,928 Emergency Medical Services 19,172 15,570 18,491 14,206 13,069 13,854 Airport Authority 10,182 9,498 9,633 7,242 4,959 4,639 Mass Transit 1,268 1,081 1,140 1,086 978 1,203 Operating Grants and Contributions 7,358 42,508 8,172 26,394 11,548 46,592 Capital Grants and Contributions 47,371 47,787 48,197 42,974 42,099 37,888 Total business-type activities program revenues 377,583 373,909 323,233 318,997 289,240 311,943 Total primary government program revenues 609,005 583,422 623,186 551,123 443,288 475,518 Net (expense)/revenue: Governmental activities (570,249) (612,339) (385,988) (412,545) (462,808) (438,108) Business-type activities 34,203 24,995 28,364 51,841 31,069 56,490 Total primary government net expense $ (536,046) $ (587,344) $ (357,624) $ (360,704) $ (431,739) $ (381,618) General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property taxes $ 531,452 $ 518,877 $ 447,901 $ 400,607 $ 376,140 $ 356,099 Gas taxes 25,808 24,846 24,196 22,920 21,005 24,485 Sales taxes 64,862 68,746 65,043 55,732 45,228 49,550 Infrastructure sales tax 33,851 124,563 120,376 99,588 81,735 60,787 Tourist taxes 48,637 44,108 47,470 36,192 26,062 31,653 Other taxes 6,694 6,690 6,658 6,289 6,438 7,140 State revenue sharing 18,251 18,831 17,758 13,776 12,343 13,194 Interest earnings 100,307 62,110 (55,942) 1,639 14,336 24,113 Miscellaneous 16,119 18,892 7,899 18,407 11,523 17,594 Transfers, net (21,976) (18,257) (15,714) (8,880) (15,020) (16,837) Total governmental activities $ 824,005 $ 869,406 $ 665,645 $ 646,270 $ 579,790 $ 567,778 Business-type Activities: Interest earnings $33,601 $21,606 $ (22,905) $394 $ 5,870 $9,699 Miscellaneous 168 1,266 161 1,457 851 1,476 Transfers, net 21,976 18,257 15,714 8,880 15,020 16,837 Total business-type activities 55,745 41,129 (7,030) 10,731 21,741 28,012 Total primary government $ 879,750 $ 910,535 $ 658,615 $ 657,001 $ 601,531 $ 595,790 Change in Net Position Governmental activities $ 253,756 $ 257,067 $ 279,657 $ 233,725 $ 116,982 $ 129,670 Business-type activities 89,948 66,124 21,334 62,572 52,810 84,502 Total primary government $ 343,704 $ 323,191 $ 300,991 $ 296,297 $ 169,792 $ 214,172 160 STATISTICAL SECTION Page 991 of 5415 Fiscal Year 2018 2017 2016 2015 $ 126,920 $ 108,388 $ 104,188 $ 93,644 223,177 225,360 205,347 174,874 83,386 75,589 70,560 70,296 58,042 51,889 49,526 45,117 64,822 41,899 48,256 45,621 9,736 11,294 12,077 12,912 $ 566,083 $ 514,419 $ 489,954 $ 442,464 $ 144,113 $ 144,850 $ 130,792 $ 122,858 106,823 43,664 39,271 36,411 32,275 28,644 26,529 24,094 5,533 4,905 4,402 4,771 12,680 11,354 11,333 10,416 301,424 233,417 212,327 198,550 $ 867,507 $ 747,836 $ 702,281 $ 641,014 $ 37,703 $ 33,377 $ 35,184 $ 34,240 28,040 24,240 25,276 25,227 2,111 2,024 4,880 1,094 7,886 8,192 8,393 8,685 2,235 1,467 1,230 4,237 29,549 26,539 26,387 35,521 47,645 38,124 36,818 29,986 155,169 133,963 138,168 138,990 $ 145,757 $ 135,045 $ 123,856 $ 116,645 50,449 45,209 41,918 39,121 12,836 11,812 13,161 12,327 3,951 3,734 3,073 3,350 1,129 1,267 1,225 1,719 16,426 5,025 4,435 5,142 38,670 26,993 25,367 21,165 269,218 229,085 213,035 199,469 424,387 363,048 351,203 338,459 (410,914) (380,456) (351,786) (303,474) (32,206) (4,332) 708 919 $ (443,120) $ (384,788) $ (351,078) $ (302,555) $ 337,447 $ 312,633 $ 281,136 $ 259,779 22,749 21,799 20,478 19,547 44,093 41,799 40,659 38,573 - - - - 27,962 21,961 21,838 21,188 6,914 7,478 7,280 7,322 12,564 11,602 11,100 10,589 6,857 3,574 4,891 5,069 18,121 9,714 5,976 17,510 (16,487) (14,793) (14,250) (14,192) $ 460,220 $ 415,767 $ 379,108 $ 365,385 $ 2,602 $ 1,379 $ 2,011 $ 2,209 8,423 126 200 94 16,487 14,793 14,250 14,192 27,512 16,298 16,461 16,495 $ 487,732 $ 432,065 $ 395,569 $ 381,880 $ 49,306 $ 35,311 $ 27,322 $ 61,911 (4,694) 11,966 17,169 17,414 $ 44,612 $ 47,277 $ 44,491 $ 79,325 161 STATISTICAL SECTION Page 992 of 5415 COLLIER COUNTY, FLORIDA 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 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 7,140 529,714 2020 376,140 21,005 45,228 81,735 26,062 6,438 556,608 2021 400,607 22,920 55,732 99,588 36,192 6,289 621,328 2022 447,901 24,196 65,043 120,376 47,470 6,658 711,644 2023 518,877 24,846 68,746 124,563 44,108 6,690 787,830 2024 531,452 25,808 64,862 33,851 48,637 6,694 711,304 162 STATISTICAL SECTION Page 993 of 5415 COLLIER COUNTY, FLORIDA FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 General fund Nonspendable $ 10,729 $ 5,189 $ 3,811 $ 2,785 $ 2,779 $ 2,383 $ 2,645 $ 3,386 $ 3,675 $ 3,546 Restricted 554 76 197 580 1,087 461 306 2,440 264 345 Assigned 50,022 29,293 35,243 12,281 11,664 1,115 1,736 1,598 1,674 1,299 Unassigned 133,338 129,010 114,549 117,116 104,299 103,707 77,342 54,805 53,961 55,002 Total general fund $ 194,643 $ 163,568 $ 153,800 $ 132,762 $ 119,829 $ 107,666 $ 82,029 $ 62,229 $ 59,574 $ 60,192 All other governmental funds Nonspendable $ 7,459 $ 7,198 $ 6,993 $ 6,623 $ 3,490 $ 2,887 $ 8,135 $ 2,385 $ 3,055 $ 3,112 Restricted 1,037,754 964,567 822,398 722,297 560,480 522,311 354,514 328,447 324,334 293,281 Committed 64,532 58,730 48,432 44,582 41,517 40,355 34,788 32,759 26,069 25,663 Assigned 201,589 161,986 110,481 84,392 52,613 31,977 21,129 33,822 28,644 30,800 Unassigned (19,868) (21,285) (1,636) - - - (246) - (89) (514) Total all other governmental funds $ 1,291,466 $ 1,171,196 $ 986,668 $ 857,894 $ 658,100 $ 597,530 $ 418,320 $ 397,413 $ 382,013 $ 352,342 163 STATISTICAL SECTION Page 994 of 5415 COLLIER COUNTY, FLORIDA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) (amounts expressed in thousands) Fiscal Year 2024 2023 2022 2021 2020 2019 Revenues: Taxes $ 637,365 $ 710,628 $ 637,798 $ 556,387 $ 503,593 $ 471,127 Licenses, permits and impact fees 75,634 74,882 87,077 79,468 68,989 78,182 Intergovernmental 160,021 155,490 159,873 174,230 96,684 100,191 Charges for services 47,956 43,598 44,586 38,570 34,959 37,255 Fines and forfeitures 2,368 2,705 2,498 2,567 2,334 2,491 Interest earnings 93,816 58,191 (51,856) 1,575 13,178 22,046 Special assessments 17,561 12,026 15,228 5,610 5,619 7,452 Miscellaneous 5,981 5,719 6,454 11,851 6,799 5,566 Total revenues 1,040,702 1,063,239 901,658 870,258 732,155 724,310 Expenditures: Current: General government 146,032 140,034 118,232 109,729 108,008 103,445 Public safety 288,393 269,511 247,700 226,655 219,808 213,829 Physical environment 43,483 40,098 25,747 21,050 20,986 23,728 Transportation 60,124 58,366 59,272 53,788 53,316 45,245 Economic environment 27,371 42,700 40,858 13,824 9,395 8,378 Human services 33,771 25,028 25,208 77,191 20,242 17,005 Culture and recreation 65,931 64,120 56,473 49,493 46,246 48,793 Debt service: Principal 34,473 32,456 28,761 31,084 26,507 23,127 Interest 10,958 10,914 13,519 13,151 12,731 11,521 Redemption of debt - - - 10,000 - - Other fiscal charges 9 10 171 1,084 21 801 Capital outlay 170,156 177,660 127,836 164,344 129,056 107,881 Total expenditures 880,701 860,897 743,777 771,393 646,316 603,753 Excess of revenues over expenditures 160,001 202,342 157,881 98,865 85,839 120,557 Other financing sources (uses): Bonds issued - - - 99,175 - 62,965 Loans issued 3,000 1,500 1,000 - - 28,060 Refunding loans issued - - 108,425 - - - Premiums on bonds issued - - - 16,925 - 3,238 Discount on loans issued - - (189) - - - Payment to refunding escrow - - (108,044) - - - Leases 1,347 237 865 2,658 358 - Subscription based information technology arrangements 8,175 7,414 - - - - Sale of capital assets 709 1,219 4,662 337 712 376 Insurance proceeds 9,609 12,834 842 4,157 2,104 6,416 Transfers in 242,683 205,310 185,203 236,502 144,991 140,633 Transfers out (274,179) (236,560) (200,834) (246,785) (161,271) (157,399) Total other financing sources (uses) (8,656) (8,046) (8,070) 112,969 (13,106) 84,289 Net change in fund balances $ 151,345 $ 194,296 $ 149,811 $ 211,834 $ 72,733 $ 204,846 Debt service as a percentage of noncapital expenditures 6.39% 6.35% 6.86% 7.41% 7.59% 6.99% 164 STATISTICAL SECTION Page 995 of 5415 Fiscal Year 2018 2017 2016 2015 $ 386,814 $ 355,885 $ 322,915 $ 300,341 75,102 59,217 61,033 51,319 92,206 86,656 83,949 92,818 36,981 34,008 38,362 37,172 2,375 2,263 2,708 2,866 6,133 3,233 4,440 4,606 4,789 4,350 3,746 3,132 4,527 8,705 6,600 16,063 608,927 554,317 523,753 508,317 101,198 89,193 84,599 78,147 198,097 197,762 177,375 167,788 31,994 12,465 15,283 16,157 45,904 41,003 36,011 36,992 9,942 8,199 11,061 9,159 15,849 15,058 14,038 13,151 47,671 42,889 40,886 37,523 21,864 21,439 20,743 20,039 10,165 11,908 12,713 13,555 - 5,588 - - 128 48 19 21 82,871 80,495 67,198 62,186 565,683 526,047 479,926 454,718 43,244 28,270 43,827 53,599 - - - - 12,000 - - - 43,713 5,293 - - - - - - - - - - (44,525) - - - - - - 1,915 - - - - 1,065 155 306 595 3,762 339 796 379 114,358 117,833 121,654 196,026 (132,910) (133,834) (137,530) (208,760) (2,537) (10,214) (14,774) (9,845) $ 40,707 $ 18,056 $ 29,053 $ 43,754 6.63% 7.58% 8.11% 8.56% 165 STATISTICAL SECTION Page 996 of 5415 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 Agricultural Personal September 30 Property Property Other Property Property Property Property 2015 $ 61,457,718 $ 4,082,445 $4,692,490 $ 651,646 $268,161 $ 2,186,145 2016 66,559,709 4,377,974 5,067,190 682,762 282,725 2,353,841 2017 73,334,846 4,681,110 5,252,880 763,216 282,376 2,342,953 2018 79,459,537 5,047,802 5,438,701 841,128 280,507 2,448,008 2019 83,819,751 5,360,190 5,681,034 923,980 283,625 2,534,892 2020 87,951,024 6,001,743 5,936,391 1,073,086 282,370 2,619,748 2021 93,113,447 6,691,606 6,257,252 1,195,303 276,441 2,755,010 2022 98,746,606 6,636,506 6,516,129 1,274,347 292,672 2,835,230 2023 114,910,903 7,662,665 7,158,582 1,469,083 297,269 3,052,293 2024 129,902,284 8,252,914 7,808,052 1,669,731 313,114 3,292,148 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 166 STATISTICAL SECTION Page 997 of 5415 Total Assessed Centrally Less: Total Taxable Direct Estimated Value as a Assessed Tax Assessed Tax Actual Percentage of Property Exempt Value Rate Value Actual Value (1) $ 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% 221 11,121,148 99,168,132 4.1906 110,289,280 100% 193 11,622,676 104,679,007 4.4407 116,301,683 100% 200 12,400,782 122,150,213 4.4391 134,550,995 100% 178 13,221,848 138,016,573 4.0040 151,238,421 100% 167 STATISTICAL SECTION Page 998 of 5415 COLLIER COUNTY, FLORIDA PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (unaudited) Collier County Other Special Debt Capital Fiscal General Revenue Service Project Collier County Independent Year Fund Funds Funds Funds Total School District Districts Total 2015 3.5645 0.5860 0.0077 0.0000 4.1582 5.5800 1.1853 10.9235 2016 3.5645 0.5856 0.0071 0.0000 4.1572 5.4800 1.1331 10.7703 2017 3.5645 0.6323 0.0061 0.0000 4.2029 5.2450 1.1138 10.5617 2018 3.5645 0.6145 0.0061 0.0000 4.1851 5.1220 1.2375 10.5446 2019 3.5645 0.6122 0.0060 0.0000 4.1827 5.0490 1.2331 10.4648 2020 3.5645 0.6172 0.0059 0.0000 4.1876 5.0830 1.2272 10.4978 2021 3.5645 0.6202 0.0058 0.0001 4.1906 5.0160 1.2262 10.4328 2022 3.5645 0.8761 0.0000 0.0001 4.4407 4.8890 1.2155 10.1152 2023 3.5645 0.8745 0.0000 0.0001 4.4391 4.4590 1.1988 10.0969 2024 3.2043 0.7960 0.0000 0.0001 4.0004 4.2920 1.1905 9.4829 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 168 STATISTICAL SECTION Page 999 of 5415 COLLIER COUNTY, FLORIDA PRINCIPAL TAXPAYERS COUNTY-WIDE 2024 TAX ROLL (unaudited) 2024 2015 Property Percent of Property Percent of Taxes Total Taxes Total Owner/Taxpayer Levied Rank Taxes Levied Levied Rank Taxes Levied Marco Hotel, LLC $ 3,583,801 1 0.24% $ 1,070,714 4 0.14% HHR Naples, LLC 2,853,376 2 0.19% 1,623,995 2 0.21% Siena Lakes, LLC 1,671,531 3 0.11% - 0.00% The Moorings, Inc. 1,488,100 4 0.10% 1,146,311 3 0.15% WSR-NB, LLC 1,459,253 5 0.10% - 0.00% Naples Beach Club Land Trust I 1,447,390 6 0.10% - 0.00% PR Mercato, LLP 1,366,190 7 0.09% 819,225 6 0.11% Pearl at Founders Sq, LLC 1,208,625 8 0.08% - 0.00% Naples Beach Club Land Trust 1 1,110,983 9 0.07% - 0.00% City Gate Naples, LLC 1,061,216 10 0.07% - 0.00% Florida Power & Light Company - 0.00% 2,772,355 1 0.36% Lee County Electric - 0.00% 908,838 5 0.12% Century Link - 0.00% 800,795 7 0.10% Wal-Mart Stores East, LP - 0.00% 793,290 8 0.10% Coastland Center, LLC - 0.00% 782,185 9 0.10% Naple HMA, Inc. - 0.00% 752,471 10 0.08% Total $ 17,250,465 1.15% $ 11,470,179 1.47% Total Property Taxes Levied - County-Wide $ 1,492,209,203 $ 778,888,377 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. 169 STATISTICAL SECTION Page 1000 of 5415 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 (1) Fiscal Year (2) Amount Percentage of Levy Per Person 2015 343,802 $ 268,604 $ 259,121 96.5% $ 781 2016 350,202 291,369 281,114 96.4% 832 2017 357,470 324,123 312,507 96.4% 907 2018 367,347 349,928 337,361 96.4% 953 2019 376,706 369,257 356,075 96.4% 980 2020 375,752 390,115 376,086 96.4% 1,038 2021 382,680 415,635 400,531 96.4% 1,086 2022 390,912 464,860 447,901 96.4% 1,189 2023 399,480 542,294 518,859 95.7% 1,357 2024 408,381 552,067 531,484 96.3% 1,352 Property taxes levied apply only to General, Special Revenue, Debt Service Funds and Capital Projects Funds. Property tax levies are based on assessed values as of January 1st and become due and payable on November 1st 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 1st of each year and tax certificates for the unpaid taxes must be sold no later than June 1st 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, 2024. Sources: (1)https://www.bebr.ufl.edu/population/population-data-archive/ (2)Property Appraiser Recapitulation Report 170 STATISTICAL SECTION Page 1001 of 5415 Page 1002 of 5415 COLLIER COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities Limited General Obligation Bonds (1) Revenue Bonds (1) Direct Placement Loans and Notes Payable Other Loans Financed Purchase Obligations Leases (3)SBITA (3) Fiscal Year 2015 $3,369 $ 259,563 $ 95,116 $- $1,519 $- $- 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 -56 7,255 - 2021 -309,856 111,582 -28 7,425 - 2022 -178,680 208,979 1,000 -7,309 - 2023 -169,849 186,388 2,500 -6,610 7,722 2024 -164,947 159,653 5,500 -6,782 15,230 (1) Amounts include the unamortized premium or discount. (2) Not presented in thousands. See the Schedule of Demographic and Economic Statistics for personal income and population data. (3) Collier County adopted GASB Statement No. 87, Leases in the 2020 fiscal year and GASB Statement 96, Subscription-Based Information Technology Arrangements in the 2023 fiscal year. (4) Does not include private development note payable. 172 STATISTICAL SECTION Page 1003 of 5415 Business-type Activities Revenue Bonds (1) Direct Placement Loans and Notes Payable Other Loans Financed Purchase Obligations Leases (3) SBITA (3) Total Primary Government Percentage of Personal Income (2) Per Capita (2) $ 60,976 $ 28,714 $ 104,475 $ 1,074 $ - $ - $ 554,806 2.05% $ 1,614 59,954 24,727 95,707 1,247 - - 519,008 1.74% 1,482 59,351 108,278 66 865 - - 482,749 1.53% 1,350 58,748 129,141 66 521 - - 469,654 1.38% 1,278 139,382 113,576 66 173 - - 627,758 1.65% 1,666 138,524 98,165 70 59 808 - 592,391 1.44% 1,577 297,456 82,476 70 - 703 - 809,596 1.91% 2,115 293,299 67,624 70 - 607 - 757,568 1.66% 1,938 233,355 106,030 70 - 726 437 713,687 1.37% 1,787 229,645 94,267 70 - 638 381 677,113 1.24% 1,658 173 STATISTICAL SECTION Page 1004 of 5415 COLLIER COUNTY, FLORIDA LEGAL DEBT MARGIN INFORMATION As Of September 30, 2024 (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, 2024 (unaudited) Estimated Estimated Percentage Share of Debt Applicable Based Overlapping Outstanding on Population (2)Debt Direct Debt: Governmental Activities Special Obligation Revenue Bonds (1)(3)$ 104,981,756 100.00% $ 104,981,756 Tourist Development Tax Revenue Bonds (1)59,965,691 100.00% 59,965,691 Direct Placement Loans and Notes Payable (1)(3)159,651,794 100.00% 159,651,794 Leases, SBITA and Other Loans (3)27,559,368 100.00% 27,559,368 Total Governmental Activities Direct Debt 352,158,609 352,158,609 Overlapping Debt: N/A - 0.00% - Underlying Debt: City of Naples (4)22,084,041 4.75% 1,048,992 City of Marco Island (5)16,175,911 3.99% 645,419 City of Everglades (6)- 0.09% - Subtotal, Underlying Debt 38,259,952 8.83% 1,694,411 Total Direct, Overlapping and Underlying Debt $ 390,418,561 $ 353,853,020 (1) Amounts include the unamortized premium or discount. (2) Population numbers obtained from University of Florida Bureau of Economic and Business Research. (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. 174 STATISTICAL SECTION Page 1005 of 5415 COLLIER COUNTY, FLORIDA PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years (amounts expressed in thousands) (unaudited) Governmental Activities: Gas Tax Bonds and Direct Placement Loans Special Obligation Bonds and Direct Placement Loans(4) Legally Available Gas Non-Ad Fiscal Tax Debt Service Valorem Debt Service Year Collections Principal Interest Coverage(1) Collections(2) Principal Interest Coverage(3) 2015 $ 19,547 $ 9,440 $ 3,697 1.49 $ 102,375 $ 8,885 $ 9,426 5.59 2016 20,478 9,900 3,242 1.56 107,268 9,280 9,020 5.86 2017 21,799 10,195 2,939 1.66 108,577 9,705 8,591 5.93 2018 22,749 10,510 2,737 1.72 118,725 10,258 7,012 6.87 2019 22,709 10,830 2,542 1.70 125,162 10,865 7,191 6.93 2020 21,005 11,170 2,178 1.57 124,638 11,362 7,244 6.70 2021 22,920 11,515 1,802 1.72 129,594 11,841 8,458 6.38 2022 24,196 11,875 1,413 1.82 152,914 14,798 9,354 6.33 2023 24,776 12,215 1,046 1.87 165,483 16,885 6,887 6.96 2024 25,808 12,965 706 1.89 162,237 16,581 6,899 6.91 Business-type Activities: Water and Sewer Revenue Bonds and Direct Placement Loans Water/ Sewer Less: Net Fiscal Charges Operating Available Debt Service Year and Other (4) Expenses (5) Revenue Principal Interest Coverage (6) 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 2021 170,927 106,913 64,014 6,500 6,066 5.09 2022 160,302 113,392 46,910 9,016 10,959 2.35 2023 209,447 125,794 83,653 5,610 10,851 5.08 2024 237,413 136,214 101,199 5,795 10,587 6.18 (1) Gas Tax Collections divided by annual total debt service requirements for the respective fiscal year. (2) 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 and are averaged over two fiscal years. (3) Legally Available Non-Ad Valorem Collections divided by annual total debt service requirements for the respective fiscal year. Current year collections are $172,373,671. (4) Operating revenues plus other income; certain interest earnings, gain on disposal of assets, capital grants and contributions and transfers in are not included. (5) Total operating expenses, excluding depreciation and amortization; loss on disposal of assets, interest expense and transfers out are not included. (6) Net available revenue divided by annual total senior lien debt service requirements for the County Water and Sewer District. Coverage must be at least 1.00. 175 STATISTICAL SECTION Page 1006 of 5415 COLLIER COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years (unaudited) Per Capita Fiscal Personal Personal Median School Unemployment Year Population(1)Income(2)Income Age(3)Enrollment(4)Rate(5) 2015 343,802 $ 27,082,008,000 $78,772 48 45,228 5.2% 2016 350,202 29,889,525,000 85,349 48.5 47,289 4.9% 2017 357,470 31,512,180,000 88,153 49.2 49,394 3.6% 2018 367,347 33,958,713,000 92,443 49.7 47,934 3.3% 2019 376,706 38,058,323,000 101,029 50.3 48,441 3.2% 2020 375,752 41,014,314,000 109,153 50.8 47,048 5.7% 2021 382,680 42,413,331,000 110,832 51.3 48,838 3.6% 2022 390,912 45,539,558,000 116,496 51.5 49,692 2.8% 2023 399,480 52,200,912,000 130,672 52.2 49,662 3.3% 2024 408,381 54,390,465,000 133,186 53.1 48,266 3.7% Sources: (1)UF BEBR Florida Estimates of Population 2024 (2)fred.stlouisfed.org/series/PI12021 (3)fred.stlouisfed.org/series/B01002001E012021 (4)collierschools.com/Page/349 (5)floridajobs.org 176 STATISTICAL SECTION Page 1007 of 5415 COLLIER COUNTY, FLORIDA PRINCIPAL EMPLOYERS (unaudited) 2024 2015 Percent of Percent of Total County Total County Employer Employees Rank Employment Employees Rank Employment Collier County Public Schools 5,987 1 3.50% 5,280 1 4.29% NCH Healthcare System 4,385 2 2.56% 4,000 2 3.25% Arthex, Inc. 4,274 3 2.49% 1,709 5 1.39% Publix Supermarkets 3,406 4 1.99% 2,805 3 2.28% Collier County Government (excl. Sheriff) 2,692 5 1.57% 2,137 4 1.74% Collier County Sheriff’s Office 1,503 6 0.88% 1,397 6 1.13% JW Marriott - Marco Island 1,130 7 0.66% Ritz Carlton Hotel 1,100 8 0.64% 1,100 7 0.89% Seminole Casino - Immokalee 900 9 0.52% 875 9 0.70% City of Naples 529 10 0.31% Country Club of Naples 1,050 8 0.85% Marriott Corporation 775 10 0.63% Other employers 145,418 84.88% 102,054 82.85% Totals 171,324 100.00% 123,182 100.00% Sources: Southwest Florida Economic Development Alliance Collier County Public Schools NCH Healthcare System Publix Corporate Office Arthrex, Inc. 177 STATISTICAL SECTION Page 1008 of 5415 COLLIER COUNTY, FLORIDA BUDGETED FULL-TIME EQUIVALENT COUNTY EMPLOYEES BY FUNCTION (1) Last Ten Fiscal Years (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Function: General government 1,487 1,456 1,434 1,374 1,366 1,342 1,299 1,351 1,262 1,217 Public safety 1,110 1,133 1,104 1,111 1,100 1,080 1,089 1,112 1,124 1,096 Physical environment 104 105 97 94 90 80 73 73 70 69 Transportation 255 236 232 233 235 228 224 219 211 192 Economic environment 42 40 31 26 27 31 30 29 26 27 Human services 72 70 70 70 61 58 58 58 56 56 Culture and recreation 363 361 354 370 340 347 337 324 304 298 Water and Sewer 485 476 467 434 438 436 414 410 384 342 Solid Waste 44 44 44 45 44 45 43 31 28 27 Emergency Medical Services 228 228 202 202 202 202 199 194 193 193 Airport Authority 20 18 17 15 15 15 15 15 15 14 Collier Area Transit 5 5 5 5 5 5 5 4 4 3 Total 4,215 4,172 4,057 3,979 3,923 3,869 3,786 3,820 3,677 3,534 (1) Includes the Board of County Commissioners and the Constitutional Officers 178 STATISTICAL SECTION Page 1009 of 5415 COLLIER COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Function: Police: Physical arrests 8,406 8,224 7,285 6,519 6,227 9,072 9,266 8,269 9,359 9,347 Parking violations 689 410 429 362 333 817 894 1,068 867 931 Traffic violations 28,343 30,041 32,146 24,674 22,370 26,773 17,157 15,473 14,462 16,355 Fire: Fires reported ** ** ** ** ** ** ** ** 31 82 Emergency responses (exclude fires)** ** ** ** ** ** ** ** 839 1,093 Number of calls answered 1,126 962 737 886 680 870 804 795 870 1,175 Transportation: Collier Area Transit ridership 755,143 722,918 662,396 649,391 723,423 913,569 944,931 996,687 1,082,519 1,177,029 Street resurfacing (lane miles) 16 57 93 42 34 43 40 38 34 34 Culture and recreation: Beach parking stickers issued 141,452 142,338 150,078 144,254 131,645 146,500 143,500 149,490 139,828 134,051 Library circulation 1,776,128 2,083,700 2,063,261 2,554,082 2,080,277 2,471,878 2,253,555 2,193,351 2,349,418 2,302,017 Water: New connections 1,150 1,695 2,368 2,864 2,031 2,297 2,776 1,951 2,023 2,204 Wastewater: Average daily sewage treatment 24,894 23,586 22,220 21,603 21,015 20,426 18,030 18,555 17,866 17,231 (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 and Road and Bridge Departments Culture and Recreation-Collier County Parks and Recreation and Public Library Departments Water-Collier County Utility Billing Department Wastewater-Collier County Wastewater Department 179 STATISTICAL SECTION Page 1010 of 5415 COLLIER COUNTY, FLORIDA CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years (unaudited) Fiscal Year 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Function: Public Safety: Police stations 7 7 7 7 7 7 7 7 7 7 Patrol units 261 267 268 273 273 272 272 270 274 276 Fire: Fire stations 4 4 4 4 4 4 4 4 4 4 Highways and streets: Streets* (miles) 1,186 1,170 1,170 1,167 1,172 1,169 1,166 1,161 1,159 1,149 Streetlights 5,502 5,511 5,412 5,378 5,364 4,635 5,083 5,074 5,182 4,958 Traffic signals 413 407 382 381 377 377 377 374 365 360 Culture and recreation: Parks acreage 1,524 1,524 1,524 1,561 1,560 1,521 1,521 1,521 1,521 1,521 Parks 67 67 67 66 66 61 61 61 61 61 Swimming pools 17 17 11 9 9 9 9 8 8 8 Tennis courts 32 32 42 40 40 45 45 45 45 45 Community centers 10 10 10 9 9 9 9 9 9 9 Libraries 10 10 10 10 10 10 10 10 10 10 Number of volumes in libraries 664,355 722,042 699,760 653,726 659,112 663,811 593,378 557,188 567,248 605,408 Water: Number of customers 86,414 84,452 82,790 81,339 75,837 73,854 71,614 66,010 61,830 59,443 Water mains (miles) 1,228 1,207 1,205 1,191 1,166 1,149 1,132 1,067 1,015 986 Maximum daily capacity (per million gallons) 34,954 36,373 34,811 32,726 33,658 32,113 30,956 32,243 33,877 31,376 Wastewater: Sanitary sewers (miles) 1,259 1,246 1,212 1,201 1,186 1,181 1,156 1,085 1,021 1,028 Primary and secondary drainage facilities 329 330 330 325 325 322 312 289 294 306 Sources: Police-Collier County Sheriff’s Department Fire-Collier County Bureau of Emergency Services Department Highway and Streets-Collier County Traffic Operations, Transportation Engineering and Road and Bridge Departments Culture and Recreation-Collier County Parks and Recreation and Public Library Departments Water-Collier County Water and Utility Billing Departments Wastewater-Collier County Stormwater and Wastewater Departments 180 STATISTICAL SECTION Page 1011 of 5415 SINGLE AUDIT Page 1012 of 5415 Page 1013 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 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 Board of County Commissioners 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 (the County), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated March 5, 2025. Report on 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. 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 or significant deficiencies may exist that were not identified. 183 Page 1014 of 5415 Honorable Board of County Commissioners Collier County, Florida Report on 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. 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 5, 2025 184 Page 1015 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 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 Opinion on Each Major Federal Program and State Project We have audited Collier County, Florida (the County)’s compliance with the types of compliance requirements identified as subject to audit 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, 2024. 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. In our opinion, the County complied, in all material respects, with the 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, 2024. Basis for Opinion on Each Major Federal Program and State Project We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); 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). Our responsibilities under those standards, the Uniform Guidance and Chapter 10.550 are further described in the Auditors’ Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the County and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program and state project. Our audit does not provide a legal determination of the County’s compliance with the compliance requirements referred to above. 185 Page 1016 of 5415 Honorable Board of County Commissioners Collier County, Florida Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the County’s federal programs and state projects. Auditors’ Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the County’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, and Chapter 10.550 will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the County’s compliance with the requirements of each major federal program and state project as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, and Chapter 10.550, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the County’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. Obtain an understanding of the County’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 186 Page 1017 of 5415 Honorable Board of County Commissioners Collier County, Florida Report on 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 and 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 and state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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. CliftonLarsonAllen LLP Naples, Florida March 5, 2025 187 Page 1018 of 5415 ASSISTANCE GRANT / CONTRACT LISTING IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS U.S. Department of Agriculture Direct Programs: Natural Resources Conservation Service: Emergency Watershed Protection Program 10.923 NR234209XXXXC009 4,109,777$ ‐$ Total U.S Department of Agriculture 4,109,777 ‐ 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 14.218 B‐19‐UC‐12‐0016 23,170 23,170 Community Development Block Grants/Entitlement Grants 14.218 B‐20‐UC‐12‐0016 331,268 331,268 COVID‐19 ‐ Community Development Block Grants/Entitlement Grants 14.218 B‐20‐UW‐12‐0016 1,039,580 930,314 Community Development Block Grants/Entitlement Grants 14.218 B‐21‐UC‐12‐0016 266,913 252,589 Community Development Block Grants/Entitlement Grants 14.218 B‐22‐UC‐12‐0016 703,367 478,123 Community Development Block Grants/Entitlement Grants 14.218 B‐23‐UC‐12‐0016 257,059 27,716 Total Assistance Listing 2,621,357 2,043,180 Total CDBG ‐ Entitlement Grants Cluster 2,621,357 2,043,180 COVID‐19 ‐ Emergency Solutions Grant Program 14.231 E‐20‐UW‐12‐0016 3,061 ‐ Emergency Solutions Grant Program 14.231 E‐21‐UC‐12‐0016 16,036 ‐ Emergency Solutions Grant Program 14.231 E‐22‐UC‐12‐0016 108,597 5,664 Emergency Solutions Grant Program 14.231 E‐22‐UW‐12‐0016 690,014 ‐ Emergency Solutions Grant Program 14.231 E‐23‐UC‐12‐0016 109,068 53,861 Total Assistance Listing 926,776 59,525 Home Investment Partnerships Program 14.239 M18‐UC120217 120,962 11,387 Home Investment Partnerships Program 14.239 M19‐UC120217 166,533 88,635 Home Investment Partnerships Program 14.239 M20‐UC120217 266,478 ‐ Home Investment Partnerships Program 14.239 M21‐UC120217 34,494 34,893 COVID‐19 ‐ Home Investment Partnerships Program 14.239 M21‐UP120217 16,907 ‐ Home Investment Partnerships Program 14.239 M22‐UC120217 76,132 ‐ Home Investment Partnerships Program 14.239 M23‐UC120217 997 ‐ Total Assistance Listing 682,503 134,915 Total U.S. Department of Housing and Urban Development 4,230,636 2,237,620 U.S. Department of the Interior Direct Programs: Departmental Offices: Payments in Lieu of Taxes 15.226 Collier County 1,714,126 ‐ U.S. Fish and Wildlife Service: Partners for Fish and Wildlife 15.631 F20AC10210‐01 25,000 ‐ Total U.S. Department of the Interior 1,739,126 ‐ U.S. Department of Justice Direct Programs: Office of Community Oriented Policing Service: Public Safety Partnership and Community Policing Grants 16.710 2020ULWX0029 61,215 ‐ Office of Justice Programs: Treatment Court Discretionary Grant Program 16.585 2020‐DC‐BX‐0138 138,064 131,271 Treatment Court Discretionary Grant Program 16.585 15PBJA‐23‐GG‐04295‐DGCT 18,254 15,017 Total Assistance Listing 156,318 146,288 Edward Byrne Memorial Justice Assistance Grant Program 16.738 15PBJA‐22‐GG‐04994‐JAGX 72,688 ‐ Pass‐Through Programs: Florida Office of the Attorney General: Florida Department of Legal Affairs: Crime Victim Assistance 16.575 VOCA‐C‐2023‐CCSO‐00187 188,939 ‐ Total U.S. Department of Justice 479,160 146,288 (Continued) See accompanying Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance. FEDERAL PROGRAM PASS‐THROUGH ENTITY COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 FEDERAL AGENCY 188 Page 1019 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 ASSISTANCE GRANT / CONTRACT LISTING IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS (Continued) U.S. Department of Transportation Direct Programs: Federal Aviation Administration: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID‐19 Airports Programs 20.106 3‐12‐0142‐017‐2023 4,424$ ‐$ Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID‐19 Airports Programs 20.106 3‐12‐0142‐018‐2023 638,587 ‐ Total Assistance Listing 643,011 ‐ Office of the Secretary: National Infrastructure Investments 20.933 693JJ32040007 5,783,047 ‐ Federal Highway Administration: Safe Streets and Roads for All 20.939 693JJ32340448 61,835 ‐ Federal Transit Administration: Federal Transit Cluster: Federal Transit Formula Grants 20.507 FL‐95‐X062‐00 21,329 ‐ Federal Transit Formula Grants 20.507 FL‐95‐X086‐00 23,776 ‐ Federal Transit Formula Grants 20.507 FL‐2018‐024‐00 137,444 ‐ Federal Transit Formula Grants 20.507 FL‐2018‐025‐00 99,754 ‐ Federal Transit Formula Grants 20.507 FL‐2019‐028‐00 128,336 ‐ Federal Transit Formula Grants 20.507 FL‐2019‐041‐00 65,987 ‐ COVID‐19 ‐ Federal Transit Formula Grants 20.507 FL‐2020‐046‐00 371,460 ‐ Federal Transit Formula Grants 20.507 FL‐2020‐091‐00 7,140 ‐ Federal Transit Formula Grants 20.507 FL‐2020‐103‐00 149,567 ‐ Federal Transit Formula Grants 20.507 FL‐2020‐115‐00 119,510 ‐ Federal Transit Formula Grants 20.507 FL‐2021‐032‐00 499,500 ‐ Federal Transit Formula Grants 20.507 FL‐2022‐005‐00 71,708 ‐ Federal Transit Formula Grants 20.507 FL‐2023‐011‐00 492,369 ‐ Federal Transit Formula Grants 20.507 FL‐2023‐084‐00 2,429,115 ‐ Federal Transit Formula Grants 20.507 FL‐2024‐066‐00 74,858 ‐ Total Assistance Listing 4,691,853 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL‐2017‐017‐00 53,558 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL‐2018‐008‐00 7,001 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL‐2019‐097‐00 24,672 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL‐2020‐103‐00 48,766 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 FL‐2021‐033‐00 237,970 ‐ Pass‐Through Programs: Florida Department of Transportation: Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G2692 106,935 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G2L70 17,232 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G2U41 500 ‐ Buses and Bus Facilities Formula, Competitive, and Low or No Emissions Programs 20.526 G2W58 500 ‐ Total Assistance Listing 497,134 ‐ Total Federal Transit Cluster 5,188,987 ‐ (Continued) FEDERAL AGENCY PASS‐THROUGH ENTITY FEDERAL PROGRAM 189 Page 1020 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 ASSISTANCE GRANT / CONTRACT LISTING IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS (Continued) Highway Planning and Construction 20.205 G1O02 8,622$ ‐$ Highway Planning and Construction 20.205 G2189 1,264,761 ‐ Highway Planning and Construction 20.205 G2821 679,687 ‐ Highway Planning and Construction 20.205 G2A77 276,000 ‐ Highway Planning and Construction 20.205 G2A87 71,000 ‐ Highway Planning and Construction 20.205 G2M23 81 ‐ Highway Planning and Construction 20.205 G2N19 74 ‐ Highway Planning and Construction 20.205 G2V40 291,982 ‐ Total Assistance Listing 2,592,207 ‐ Metropolitan Transportation Planning and State and Non‐Metropolitan Planning and Research 20.505 G1J00 3,161 ‐ Metropolitan Transportation Planning and State and Non‐Metropolitan Planning and Research 20.505 G1V40 17,102 ‐ Metropolitan Transportation Planning and State and Non‐Metropolitan Planning and Research 20.505 G2594 46,313 ‐ Total Assistance Listing 66,576 ‐ Formula Grants for Rural Areas and Tribal Transit Program 20.509 G2690 152,808 ‐ Formula Grants for Rural Areas and Tribal Transit Program 20.509 G2B95 704,897 ‐ Formula Grants for Rural Areas and Tribal Transit Program 20.509 G2T56 500 ‐ Formula Grants for Rural Areas and Tribal Transit Program 20.509 G2W59 500 ‐ Total Assistance Listing 858,705 ‐ Highway Safety Cluster: State and Community Highway Safety 20.600 G2O78 44,428 ‐ State and Community Highway Safety 20.600 G2Q11 99,890 ‐ Total Assistance Listing 144,318 ‐ Total Highway Safety Cluster 144,318 ‐ Total U.S. Department of Transportation 15,338,686 ‐ U.S. Department of the Treasury Direct Programs: Departmental Offices: COVID‐19 ‐ Emergency Rental Assistance Program 21.023 ERAE0037 170,744 51,540 COVID‐19 ‐ Coronavirus State and Local Fiscal Recovery Funds 21.027 SLFRP3243 11,933,284 5,135,755 COVID‐19 ‐ Local Assistance and Tribal Consistency Fund 21.032 LATCFCO0202 176,498 ‐ Total U.S. Department of the Treasury 12,280,526 5,187,295 Gulf Coast Ecosystem Restoration Council Pass‐Through Programs: The Gulf Consortium: Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program 87.052 200097221.01 37,228 ‐ Total Gulf Coast Ecosystem Restoration Council 37,228 ‐ 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: COVID‐19 ‐ Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 ARPA 203.22 336,649 ‐ Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.23 72,288 ‐ Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.044 OAA 203.24 150,892 ‐ Total Assistance Listing 559,829 ‐ (Continued) FEDERAL AGENCY PASS‐THROUGH ENTITY FEDERAL PROGRAM 190 Page 1021 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 ASSISTANCE GRANT / CONTRACT LISTING IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS FEDERAL AWARDS (Continued) COVID‐19 ‐ Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 ARPA 203.22 310,936$ ‐$ Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.23 309,694 ‐ Special Programs for the Aging, Title III, Part C, Nutrition Services 93.045 OAA 203.24 260,535 ‐ Total Assistance Listing 881,165 ‐ Nutrition Services Incentive Program 93.053 OAA 203.23 11,701 ‐ Nutrition Services Incentive Program 93.053 OAA 203.24 13,839 ‐ Total Assistance Listing 25,540 ‐ Total Aging Cluster 1,466,534 ‐ COVID‐19 ‐ National Family Caregiver Support, Title III, Part E 93.052 ARPA 203.22 14,097 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.23 18,355 ‐ National Family Caregiver Support, Title III, Part E 93.052 OAA 203.24 26,026 ‐ Total Assistance Listing 58,478 ‐ Low‐Income Home Energy Assistance 93.568 EHEAP 203.21 43,385 ‐ Florida Department of Revenue: Child Support Services 93.563 CDC11 11,402 ‐ Child Support Services 93.563 COC11 131,890 ‐ Total Assistance Listing 143,292 ‐ Total U.S. Department of Health and Human Services 1,711,689 ‐ Corporation for National and Community Service Direct Programs: AmeriCorps Seniors Retired and Senior Volunteer Program (RSVP) 94.002 94.002 21SRHFL016 33,986 ‐ AmeriCorps Seniors Retired and Senior Volunteer Program (RSVP) 94.002 94.002 24SRHFL011 20,405 ‐ Total Assistance Listing 54,391 ‐ AmeriCorps September 11th National Day of Service and Remembrance Grants 94.012 94.012 23BIHFL001 120,379 ‐ Total Corporation for National and Community Service 174,770 ‐ U.S. Executive Office of the President Direct Programs: High Intensity Drug Trafficking Areas Program 95.001 G21MI0015A 10,989 ‐ High Intensity Drug Trafficking Areas Program 95.001 G22MI0015A 29,785 ‐ High Intensity Drug Trafficking Areas Program 95.001 G23MI0015A 144,620 ‐ Total U.S. Executive Office of the President 185,394 ‐ 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 57,144 ‐ Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) 97.036 Z2967 10,787,062 ‐ Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) 97.036 Z3092 91,290 ‐ Total Assistance Listing 10,935,496 ‐ Emergency Management Performance Grants 97.042 G0380 15,270 ‐ Emergency Management Performance Grants 97.042 G0449 112,146 ‐ Total Assistance Listing 127,416 ‐ Homeland Security Grant Program 97.067 R0229 8,571 ‐ Homeland Security Grant Program 97.067 R0492 19,436 ‐ Homeland Security Grant Program 97.067 R0552 4,312 ‐ Homeland Security Grant Program 97.067 R0867 72,117 ‐ Total Assistance Listing 104,436 ‐ Total U.S. Department of Homeland Security 11,167,348 ‐ 51,454,340$ 7,571,203$ (Continued) TOTAL EXPENDITURES OF FEDERAL AWARDS FEDERAL AGENCY PASS‐THROUGH ENTITY FEDERAL PROGRAM 191 Page 1022 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 GRANT / CONTRACT CSFA IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS STATE FINANCIAL ASSISTANCE Direct Projects: Florida Division of Emergency Management: Emergency Management Programs 31.063 A0345 105,806$ ‐$ Total Florida Executive Office of the Governor 105,806 ‐ Direct Projects: Beach Management Funding Assistance Program 37.003 20CO2 13,341 ‐ Beach Management Funding Assistance Program 37.003 20CO3 742,301 ‐ Total CSFA 755,642 ‐ Statewide Water Quality Restoration Projects 37.039 LPA0268 212,607 ‐ Statewide Water Quality Restoration Projects 37.039 LPA0495 167,831 ‐ Total CSFA 380,438 ‐ Resilient Florida Program 37.098 23PLN108 4,800 ‐ Total Florida Department of Environmental Protection 1,140,880 ‐ Florida Housing Finance Corporation Direct Projects: 40.901 Collier County FY 2020‐2021 95,149 ‐ 40.901 Collier County FY 2021‐2022 752,700 ‐ 40.901 Collier County FY 2022‐2023 141,777 ‐ 40.901 Collier County FY 2022‐2023 DR 34,039 ‐ 40.901 Collier County FY 2022‐2023 HHRP 674,823 ‐ 40.901 Collier County FY 2023‐2024 760,353 ‐ Total Florida Housing Finance Corporation 2,458,841 ‐ Direct Projects: Acquisition, Restoration of Historic Porperties 45.032 23.h.sc.100.039 64,109 ‐ Total Florida Department of State and Secretary of State 64,109 ‐ Direct Projects: Florida Highway Beautification Grant Program 55.003 G2A94 100,000 ‐ Aviation Grant Programs 55.004 G2861 37,705 ‐ Aviation Grant Programs 55.004 G2J86 247,934 ‐ Aviation Grant Programs 55.004 G2K13 1,108,171 ‐ Total CSFA 1,393,810 ‐ County Incentive Grant Program (CIGP)55.008 G1S82 338,631 ‐ Public Transit Block Grant Program 55.010 GS200 1,097,091 ‐ Transit Corridor Development Program 55.013 G2L71 367,114 ‐ Transit Corridor Development Program 55.013 G2X27 375,350 ‐ Total CSFA 742,464 ‐ Pass‐Through Projects: Florida Commission for the Transportation Disadvantaged: Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G2K36 558,090 ‐ Florida Commission for the Transportation Disadvantaged (CTD) Trip and Equipment Grant Program 55.001 G2Z03 191,365 ‐ Total CSFA 749,455 ‐ (Continued) Florida Executive Office of the Governor Florida Department of Environmental Protection 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 AGENCY PASS‐THROUGH ENTITY STATE PROJECT Florida Department of State and Secretary of State Florida Department of Transportation State Housing Initiatives Partnership Program (SHIP) State Housing Initiatives Partnership Program (SHIP) 192 Page 1023 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 GRANT / CONTRACT CSFA IDENTIFYING TRANSFERS TO NUMBER NUMBER EXPENDITURES SUBRECIPIENTS STATE FINANCIAL ASSISTANCE (Continued) Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G2I78 24,875$ ‐$ Florida Commission for the Transportation Disadvantaged (CTD) Planning Grant Program 55.002 G3000 5,848 ‐ Total CSFA 30,723 ‐ Total Florida Department of Transportation 4,452,174 ‐ Florida Department of Children and Families Direct Projects: Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 60.115 LH823 711,157 700,007 State Opioid Settlement Trust Fund Services 60.355 Collier County Abatement Fund 9,808 ‐ State Opioid Settlement Trust Fund Services 60.355 Collier County Subdivision Fund 866 ‐ Pass‐Through Projects: Central Florida Behavioral Network, Inc.: State Opioid Settlement Trust Fund Services 60.355 PJ290 128,675 ‐ Total CSFA 139,349 ‐ Total Florida Department of Children and Families 850,506 700,007 Direct Projects: Senior Center ‐ Fixed Capital Outlay (FCO)65.013 XF305 189,097 ‐ Pass‐Through Projects: Area Agency on Aging for Southwest Florida, Inc.: COVID‐19 ‐ Home Care for the Elderly 65.001 ENHCE 203.23 8,851 ‐ Home Care for the Elderly 65.001 HCE 203.23 13,221 ‐ Home Care for the Elderly 65.001 HCE 203.24 4,077 ‐ Total CSFA 26,149 ‐ Alzheimer's Respite Services 65.004 ADI 203.23 581,776 ‐ Alzheimer's Respite Services 65.004 ADI 203.24 149,696 ‐ Total CSFA 731,472 ‐ Community Care for the Elderly 65.010 CCE 203.23 731,962 ‐ Community Care for the Elderly 65.010 CCE 203.24 187,582 ‐ Total CSFA 919,544 ‐ Total Florida Department of Elder Affairs 1,866,262 ‐ Florida Department of Law Enforcement Direct Projects: FDLE Drone Replacement Program 71.092 3X016 164,842 ‐ Multi‐County Forensic Genetic Genealogy Testing (Collier, Orange, Hillsborough, Palm Beach)71.104 L8026 174,203 ‐ State Assistance For Fentanyl Eradication (S.A.F.E) In Florida 71.122 2023‐SAFE‐SF‐028 232,247 ‐ Total Florida Department of Law Enforcement 571,292 ‐ Florida Department of Management Services Direct Projects: E911 State Grant Program 72.002 S25‐24‐01‐03 117,093 ‐ Prepaid Next Generation 911 (NG911) State Grant Program 72.003 S20‐22‐02‐03 431,668 ‐ Prepaid Next Generation 911 (NG911) State Grant Program 72.003 S22‐23‐01‐13 87,062 ‐ Total CSFA 518,730 ‐ Local Government Cybersecurity Grant Program 72.009 DMS22/23‐269 367,986 ‐ Local Government Cybersecurity Grant Program 72.016 DMS24/25‐099 20,203 ‐ Total Florida Department of Management Services 1,024,012 ‐ TOTAL EXPENDITURES OF STATE FINANCIAL ASSISTANCE 12,533,882$ 700,007$ Florida Department of Elder Affairs PASS‐THROUGH ENTITY STATE PROJECT STATE AGENCY 193 Page 1024 of 5415 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2024 1.Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (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. 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, 2024. 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.Disaster Grants ‐ Public Assistance (Presidentially Declared Disasters) (97.036) After a presidentially declared disaster, FEMA provides Disaster Grants – Public Assistance (Presidentially Declared Disasters) (Assistance Listing 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. All the $57,144 reported on the Schedule for grant Z0001 was incurred in fiscal year 2019. Hurricane Ian (FEMA‐4673‐DR) made landfall in Collier County on September 28, 2022. Of the $10,787,062 reported on the Schedule for grant Z2967, $10,058,601 was incurred in fiscal year 2023 and for grant Z3092 all of the $91,290 reported on the Schedule was incurred in fiscal years 2022 and 2023. 194 Page 1025 of 5415 COLLIER COUNTY, FLORIDA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2024 5. Local Assistance and Tribal Consistency Fund (21.032) The Department of Treasury awarded the County $1,790,192 from the Local Assistance and Tribal Consistency Fund (LATCF). The two tranches were received in 2023 and of that amount, $198,432 has been expended as of fiscal year 2024. The balance of the revenue is restricted in the fund until the County incurs additional expenditures. Year Ending September 30 Amount 2023 LATCF Revenue $ 1,790,192 2023 LATCF Expenditures (21,934) 2024 LATCF Expenditures (176,498) Total $ 1,591,760 6. State Opioid Settlement Trust Fund Services (60.355) – Qualified‐Regional/Abatement Fund As part of the National Opioid Settlement and the Florida Opioid Allocation and Statewide Response Agreement, the County is set to receive yearly distributions over an 18‐year period from various pharmaceutical companies passed through the State. The County received the first distribution in April 2023 from the Abatement (Regional) Fund. Of the amounts received from 2023 through 2024, $12,760 has been expended. The balance of the revenue is restricted in the fund until the County incurs additional expenditures. Year Ending September 30 Revenues Expenditures Total 2023 (Year 1) $2,628,842 ($2,952) $2,625,890 2024 (Year 2) $1,241,219 ($9,808) $1,231,411 Grand Total $3,870,061 ($12,760) $3,857,301 195 Page 1026 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2024 SECTION I - SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued? Unmodified Internal control over financial reporting: Material weakness(es) identified?No Significant deficiency(s) identified that are not considered to be material weaknesses?None reported Noncompliance material to the financial statements noted? No Federal Awards Section Internal control over major programs: Material weakness(s) identified?No Significant deficiency(s) identified that are not considered to be material weaknesses?None reported Type of auditors’ report issued on compliance for major programs? Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No Identification of major programs: AL Numbers Name of Federal Program or Cluster 10.923 Emergency Watershed Protection Program 15.226 Payments in Lieu of Taxes 20.205 Highway Planning and Construction 20.933 National Infrastructure Investments 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $1,543,630 Auditee qualified as low-risk auditee? No 196 Page 1027 of 5415 COLLIER COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2024 SECTION I - SUMMARY OF AUDITORS’ RESULTS (CONTINUED) State Financial Assistance Section Internal control over major projects: Material weakness(s) identified?No Significant deficiency(s) identified that are not considered to be material weaknesses?None reported Type of auditors’ report issued on compliance for major projects? Unmodified Any audit findings disclosed that are required to be reported in accordance with Chapter 10.557? No Identification of major State projects: State CSFA Name of State Project or Cluster 40.901 State Housing Initiatives Partnership Program (SHIP) 55.004 Aviation Grant Program 55.013 Transit Corridor Development Program 60.115 Criminal Justice, Mental Health, and Substance Abuse Reinvestment Grant Program 65.004 Alzheimer's Respite Services 72.003 Prepaid Next Generation 911 State Grant Program Dollar threshold used to distinguish between type A State projects $750,000 SECTION II - FINANCIAL STATEMENT FINDINGS Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. SECTION III - 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). 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)(I)4, Rules of the Florida Auditor General. 197 Page 1028 of 5415 COLLIER COUNTY, FLORIDA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED SEPTEMBER 30, 2024 U.S. Department of Transportation Collier County respectfully submits the following summary schedule of prior audit findings for the year ended September 30, 2024. Audit period: October 1, 2023 – September 30, 2024 The finding from the prior audit’s schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the prior year. FINDINGS—FINANCIAL STATEMENT AUDIT There were no financial statement findings in the prior year. FINDINGS— FEDERAL AWARD PROGRAMS AUDITS 2023-001 – Highway Planning and Construction – Assistance Listing No. 20.205 Condition: The County’s equipment inventory listing of equipment purchased with grant funds was not maintained in a manner that complied with 2 CFR 200.313 during the year. An inventory listing that complied with 2 CFR 200.313 was prepared once it was requested during the audit. Additionally, for one of eight equipment items selected for testing from the inventory listing, the equipment serial number did not agree with the equipment inventory listing for that equipment’s location. Status: Corrective action was taken. 2023-002 – National Infrastructure Investments – Assistance Listing No. 20.933 Condition: The County did not obtain, maintain, or review certified payrolls as required for special provisions Davis Bacon Act for all vendors. Status: Corrective action was taken. 198 Page 1029 of 5415 COLLIER COUNTY, FLORIDA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED SEPTEMBER 30, 2024 2023-003 - CDBG – Entitlement Grant Cluster – Assistance Listing No. 14.CDBG Condition: The County did submit FFATA reports after grant award or grant award modifications were made by the dates required. For three out of the five FFATA reports selected for testing, the County submitted reports after the due date. Status: Corrective action was taken. If the U.S. Department of Housing and Urban Development has questions regarding this schedule, please call Therese Stanley at (239) 252-2959. FINDINGS— STATE AWARD PROGRAMS AUDITS There were no state award program audit findings in the prior year. 199 Page 1030 of 5415 Page 1031 of 5415 AUDITOR GENERAL Page 1032 of 5415 Page 1033 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 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 Collier County, Florida, (the County) as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated March 5, 2025. 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; 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 Cost; 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 March 5, 2025, 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 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. 203 Page 1034 of 5415 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 conditions 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. Property Assessed Clean Energy (PACE) Programs Section 10.554(1)(i)6.a., Rules of the Auditor General, requires a statement as to whether a PACE program authorized pursuant to Section 163.081 or Section 163.082, Florida Statutes, operated in the County’s geographical boundaries. A PACE program did not operate within the County’s geographical boundaries during the fiscal year under audit. 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. Specific Information (For a dependent special district or an independent special district, or a local government entity that includes the information of a dependent special district) As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Airport Authority reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 20. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 15. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $1,941,731. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $164,393. 204 Page 1035 of 5415 Honorable Board of County Commissioners Collier County, Florida e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $18,562,979. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Community Redevelopment Agency reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 5. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $656,814. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $30,558. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $18,330,479. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Educational Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $6,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. 205 Page 1036 of 5415 Honorable Board of County Commissioners Collier County, Florida As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Health Facilities Authority reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $6,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Housing Finance Authority reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 0. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $10,000. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Industrial Development Authority reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 0. 206 Page 1037 of 5415 Honorable Board of County Commissioners Collier County, Florida b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 1. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $-0-. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $7,500. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $-0-. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Metropolitan Organization reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 4. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 0. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $507,362. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $-0-. e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: None. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $2,826,303. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Collier County Water-Sewer District reported: a. The total number of district employees compensated in the last pay period of the district’s fiscal year as 451. b. The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 50. c. All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $50,944,979. d. All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $702,878. 207 Page 1038 of 5415 Honorable Board of County Commissioners Collier County, Florida e. Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project: See Appendix A. f. A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $679,538,389. Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, of fraud, waste, or abuse, that has occurred or is likely to have occurred, that has an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of County Commissioners, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida March 5, 2025 208 Page 1039 of 5415 Appendix A Listing of Special District Construction Projects September 30, 2024 Affiliated EntityName of ProjectTotal Expenditures300542 - Collier County Water-Sewer District Well/Plant Power Sys161,657$ 300542 - Collier County Water-Sewer District Vanderbilt Bch Road Ext - Util Rel/Build1,734,826 300542 - Collier County Water-Sewer District GGC Transmission Water Main Improvments6,408,426 300542 - Collier County Water-Sewer District Northeast Utility Facilities WTP/WRF10,151,804 300538 - Collier County Airport Authority FDOT 80/20 Immokalee Fuel Farm1,385,214 19,841,927$ 209 Page 1040 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS’ REPORT Honorable Board of County Commissioners Collier County, Florida We have examined Collier County, Florida’s (the County) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2024. 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. 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; Section 365.172(10) and 365.173(2)(d), Florida Statutes, regarding emergency communications number E911 system fund during the year ended September 30, 2024. 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. CliftonLarsonAllen LLP Naples, Florida March 5, 2025 210 Page 1041 of 5415 ANNUAL DEBT REPORT (UNAUDITED) Pursuant to the Collier County Debt Policy, the following Tables were prepared for the fiscal year ended September 30, 2024. Table 1. Calculation of Collier County General Governmental Debt Ratio Table 2. Calculation of Collier County Enterprise Debt Ratios Page 1042 of 5415 Page 1043 of 5415 Bondable revenues, as defined by Collier County Debt Policy: Current Ad Valorem Taxes 531,452,406$ Governmental Impact Fees 48,422,086 Half Cent Sales Tax 64,862,410 Developmental Fees 28,891,142 State Revenue Sharing 18,251,220 5th Cent Local Option Gas Tax 7,101,722 6th Cent Local Option Gas Tax 9,497,737 Constitutional Gas Tax 5,072,153 Seventh Cent Gas Tax 2,211,754 Ninth Cent Gas Tax 1,924,216 Parks and Recreation Fees 6,865,784 Tourist Development Tax 48,636,665 Court Facilities Fee 916,383 Communications Services Tax 4,048,405 Total bondable revenues 778,154,083$ Fiscal 2024 governmental debt service requirements: Series 2014 Gas Tax Refunding Bond Principal:12,965,000$ Interest:705,587 Series 2017 Special Obligation Refunding Note Principal:2,746,000 Interest:1,091,666 Series 2019 Taxable Special Obligation Note Principal:2,255,000 Interest:678,219 Series 2020A Special Obligation Bonds Principal:205,000 Interest:3,103,875 Series 2020B Taxable Special Obligation Bonds Principal:2,590,000 Interest:359,300 Series 2022A Special Obligation Refunding Note Principal:8,215,000 Interest:289,738 Series 2022B Special Obligation Refunding Note Principal:570,000 Interest:1,376,308 Series 2018 Tourist Development Tax Bonds Principal:1,195,000 Interest:2,524,375 Commercial Paper Program Principal:‐ Interest:240,998 Total fiscal 2024 governmental debt service requirements 41,111,066$ Governmental debt ratio of fiscal year 2024 debt service requirements to total bondable revenues (13.0% maximum allowed by County policy) 5.3% 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 1 Calculation of Collier County General Governmental Debt Ratio For the Fiscal Year Ended September 30, 2024 213 Page 1044 of 5415 Collier County Water and Sewer District: Total Sales Revenues 215,046,014$ Miscellaneous Revenues 5,985,124 Total Operating Revenues 221,031,138 Non‐Operating Revenues 24,095,716 Gross Revenues 245,126,854 Less: Operation and Maintenance Expense (excluding Depreciation and Amortization)137,084,632 Net Revenues Available for Debt Service (1)108,042,222$ Total Fiscal Year 2024 Debt Service on Bonds (2)16,381,664$ Net Revenues Debt Service Coverage on Bonded Debt (100% Required) ‐ (1/2)660% Other Pledged Funds: System Development Fees (Impact Fees)17,349,185$ Total Pledged Funds Available for Debt Service (3)125,391,407$ Total Fiscal Year 2024 Debt Service on Bonds (4)16,381,664$ Total Pledged Funds Debt Service Coverage on Bonded Debt (125% Required) ‐ (3/4)765% Total Pledged Funds Available for Debt Service After Payment of Bonds (5)109,009,743$ Total Fiscal Year 2024 Debt Service on Subordinated Indebtedness (6)8,797,830$ Calculated Coverage on Subordinated Indebtedness ‐ (5/6)1239% Total Pledged Funds Available for System Purposes 100,211,913$ 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. TABLE 2 Calculation of Collier County Enterprise Debt Ratios For the Fiscal Year Ended September 30, 2024 214 Page 1045 of 5415 Summary Debt Statement for Fiscal Year 2024 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 for the payment of debt service pursuant to voter referendum. The governmental debt ratio remained unchanged for the fiscal year ended September 30, 2024, at 5.3% (see Table 1), or less than half of the allowable ratio. This is mainly reflective of increases in ad valorem tax and tourist development tax collections. These revenue increases were accompanied by a 0.6% increase in debt service. Overall, governmental revenues increased by 1.8% over fiscal year 2023. Again, this increase was largely the result of a 2.4% increase in FY-2024 ad valorem collections and a 10.3% increase in FY-2024 tourist development tax 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: 6.5%6.0% 6.0% 6.5%6.0%5.8%5.3% 5.3% 13.0% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% FY‐2017 FY‐2018 FY‐2019 FY‐2020 FY‐2021 FY‐2022 FY‐2023 FY‐2024 Comparison of Governmental Debt Ratio to Maximum Allowable Governmental Debt Ratio Collier County, Florida (FY17 ‐FY24) Annual Governmental Debt Ratio Maximum Allowable Governmental Debt Ratio 215 Page 1046 of 5415 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, 2024: Issue Amount Interest Rates Final Maturity Purpose Series 2017 Special Obligation Refunding Revenue Note (Direct Placement Loan) $32,583,000 3.09% July 1, 2034 Advance refund a portion of the Series 2010 Special Obligation Revenue Bonds. Series 2019 Special Obligation Revenue Note (Taxable Direct Placement Loan) $23,625,000 2.74% October 1, 2029 Fund the purchase of the Golden Gate Golf Course. Series 2020A Special Obligation Revenue Bonds $74,535,000 4.00% - 5.00% October 1, 2045 Fund stormwater and parks capital improvements and refinance sports complex land purchase. Series 2020B Special Obligation Revenue Bonds (Taxable) $16,670,000 2.00% October 1, 2029 Fund the purchase of the HHH Ranch and the Camp Keais property. Series 2022A Special Obligation Refunding Revenue Note (Direct Placement Loan) $16,225,000 1.43% October 1, 2029 Refund all outstanding Series 2011 Special Obligation Refunding Revenue Bonds. Series 2022B Special Obligation Refunding Revenue Note (Direct Placement Loan) $74,110,000 1.85% October 1, 2035 Refund all outstanding Series 2013 Special Obligation Refunding Revenue Bonds. Series 2014 Gas Tax Refunding Revenue Bond (Direct Placement Loan) $13,265,000 2.33% June 1, 2025 Advance refund a portion of the Series 2005 Gas Tax Revenue Bonds. Series 2018 Tourist Development Tax Revenue Bonds $57,375,000 4.00% - 5.00% October 1, 2048 Fund the construction and equipping of a regional tournament caliber amateur sports complex. Commercial Paper Loan – Florida Local Government Finance Commission $5,500,000 4.53% - 4.92% (Variable Rate) September 5, 2028 Construct sidewalk improvements in the Pelican Bay Services District. Total $313,888,000 216 Page 1047 of 5415 New General Government Debt On November 9, 2023, Collier County issued a $3,000,000 commercial paper loan through the Florida Local Government Finance Commission’s Pooled Commercial Paper Program. The loan was issued for purposes of sidewalk improvements in the Pelican Bay Services District. The loan bears monthly variable interest and is collateralized by all legally available non-ad valorem revenues as defined in the loan agreement. Collier County Governmental Bonded Debt Ratings Table: Current Ratings (as of 1/23/2025) Fitch Moody’s Standard & Poor’s Gas Tax Revenue Refunding Bond* - - - Special Obligation Bonds** - Aaa AAA Tourist Development Tax Bonds*** AA+ Aa1 - *The Series 2014 Gas Tax Refunding Revenue Bond (Direct Placement Loan) does not carry a rating. ** Fitch does not currently rate the Special Obligation Bonds. *** 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. Fitch also maintains an Issuer Default Rating of AAA for Collier County which indicates the lowest expectation of default risk and exceptionally strong capacity for payment of financial commitments. A Moody’s Investors Service rating of Aaa is indicative of an investment grade instrument of the highest quality, with minimum credit risk. A Moody’s Investors Service rating of Aa is indicative of a high-quality investment grade instrument with very low credit risk. Moody’s uses intermediate modifiers of 1 (higher) to 3 (lower) within the Aa range. Moody’s also maintains an Issuer 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. Standard and Poor’s also maintains an Issuer Credit Rating of AAA for Collier County which indicates excellent overall credit-worthiness. 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 660% and total pledged funds coverage on senior lien bonded debt was 765% for FY-2024, up from 508% and 615%, respectively, for FY-2023 (see Table 2). 217 Page 1048 of 5415 Bonded debt coverages for FY-2024 increased primarily due to increases in non-operating revenues and a decrease in the amount of senior lien debt service paid in FY-2024. Non-operating revenues increased due to increased interest income and the recognition of unrealized gains related to investments when compared to FY-2023. The Federal Reserve’s rate hikes during FY-2022 had a negative impact upon the District’s portfolio valuation and a significant portion of the unrealized loss related to FY-2022 was recovered in FY- 2024. Operating revenues also increased due to increasing user rates during FY-2024. Senior lien debt service decreased by 0.5% for FY-2024. The District’s calculated coverage on subordinated debt, all in the form of a bank loan with Synovus Bank, also increased from 964% to 1,239% (see Table 2). 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 senior lien debt service. User rates for potable water, wastewater and irrigation water, as well as miscellaneous revenues, offset system operating, maintenance, debt service and capital costs. In December of 2023, the following rate increases were adopted by the District Board: Rate Type Effective January 1, 2024 Effective October 1, 2024 Effective October 1, 2025 Water User 9.0% 4.5% 4.5% Wastewater User 9.5% 7.5% 7.5% Irrigation Quality User 9.5% 9.5% 9.5% The District’s focus remains the optimization of resources, risk-based prioritization of capital projects and infrastructure expansion in Golden Gate City and the northeast service area to serve future residents and businesses. Summary of Existing and Newly Issued Enterprise Debt Existing Enterprise Debt The following table lists outstanding Enterprise Debt as of September 30, 2024: Issue Amount Interest Rates Final Maturity Purpose Series 2016 Water and Sewer Refunding Revenue Note (Subordinated) $26,257,000 1.80% July 1, 2029 Refund all outstanding State Revolving Fund Loans. Series 2018 Water and Sewer Revenue Bond (Bank Term Loan) $18,065,000 2.41% July 1, 2029 Fund the purchase of water and wastewater facilities within the Golden Gate Community. Series 2019 Water and Sewer Revenue Bonds $76,185,000 3.00% - 5.00% July 1, 2039 Fund utility improvements in the northeast area of the District. 218 Page 1049 of 5415 Series 2021 Water and Sewer Revenue Bonds $122,530,000 4.00% - 5.00% July 1, 2046 Fund utility improvements in Golden Gate City and the northeast area of the District. Series 2023 Water and Sewer Revenue Bond (Bank Term Loan) (Taxable) $49,945,000 4.15% July 1, 2036 Refund all outstanding Series 2016 Water and Sewer Refunding Revenue Bonds. Total $292,982,000 New Enterprise Debt Collier County had no new enterprise debt issued during FY-2024. Collier County Enterprise Debt Ratings Table: Current Ratings (as of 1/23/2025) 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. 219 Page 1050 of 5415 Page 1051 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Supplemental Reports Year Ended September 30, 2024 Page 1052 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Financial Statements and Other Reports Year Ended September 30, 2024 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds ........................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds ................................................................................................................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 – Custodial Funds .............................................................9 Statement of Changes in Fiduciary Net Position – Custodial Funds ........................................10 Notes to Financial Statements ...................................................................................................11 Supplementary Information Combining Statement of Fiduciary Net Position – All Custodial Funds ..................................29 Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds ...............30 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 ..........................................31 Management Letter ...................................................................................................................33 Independent Accountants’ Report .............................................................................................35 Schedule of Findings and Responses ........................................................................................37 Page 1053 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Collier County, Florida Report on the Audit of the Financial Statements Opinions 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, 2024, and the related notes to the financial statements, which collectively comprise the Clerk’s basic financial statements as listed in the table of contents. 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, 2024, and the respective changes in financial position and the respective budgetary comparisons for the General Fund, Court Services Fund, and Other Special Revenue Fund for the year ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Clerk and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Clerk 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 financial statements are intended to present the financial position and changes in financial position of only that portion of each major fund and the aggregate remaining fund information of the Collier County, Florida that is attributable to the transactions of the Clerk. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2024, or the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Page 1054 of 5415 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Clerk’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Page 1055 of 5415 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller 3 Required Supplementary Information Management has omitted the 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 opinions on the basic financial statements are not affected by this missing information. Supplementary 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 custodial fund statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining custodial fund statements are fairly stated, in all material respects, in relation to the basic 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 January 30, 2025, 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 30, 2025 Page 1056 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Balance Sheet – Governmental Funds September 30, 2024 See accompanying Notes to Financial Statements. 4 Other Total Court Special Governmental General Services Revenue Funds Assets Cash and cash equivalents 2,072,047$ 1,564,952$ 8,079,609$ 11,716,608$ Accounts receivable, net 618 - - 618 Due from Collier County, Florida Board of County Commissioners 6,061 - - 6,061 Due from other governments 9,775 63,584 - 73,359 Prepaid expenditures 12,258 1,455 - 13,713 Total assets 2,100,759$ 1,629,991$ 8,079,609$ 11,810,359$ Liabilities and fund balances Liabilities: Vouchers payable and accrued liabilities 847,648$ 286,606$ -$ 1,134,254$ Due to Collier County, Florida Board of County Commissioners 519,686 295,580 - 815,266 Due to other governments - 1,047,805 - 1,047,805 Deposits 733,425 - - 733,425 Total liabilities 2,100,759 1,629,991 - 3,730,750 Fund balance: Nonspendable 12,258 1,455 - 13,713 Restricted - - 8,079,609 8,079,609 Unassigned (12,258) (1,455) - (13,713) Total fund balance - - 8,079,609 8,079,609 Total liabilities and fund balance 2,100,759$ 1,629,991$ 8,079,609$ 11,810,359$ Page 1057 of 5415 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, 2024 See accompanying Notes to Financial Statements. 5 Other Total Court Special Governmental General Services Revenue Funds Revenues: Intergovernmental -$ 730,645$ -$ 730,645$ Charges for services 3,566,803 7,691,864 1,082,950 12,341,617 Interest income 550,126 63,290 363,557 976,973 Miscellaneous 374 - - 374 Total revenues 4,117,303 8,485,799 1,446,507 14,049,609 Expenditures: General government: Personal services 13,799,507 7,833,574 - 21,633,081 Operating 2,733,855 575,327 39,956 3,349,138 Capital outlay 1,094,911 - 13,187 1,108,098 Debt service principal 395,509 - 81,271 476,780 Debt service interest 16,366 - 2,025 18,391 Total expenditures 18,040,148 8,408,901 136,439 26,585,488 Excess (deficiency) of revenues over (under) expenditures (13,922,845) 76,898 1,310,068 (12,535,879) Other financing sources (uses): Leases 29,106 - - 29,106 Subscription-based information technology arrangements 784,332 - - 784,332 Transfers in: Collier County, Florida Board of County Commissioners appropriations 14,681,000 - - 14,681,000 Operating transfers in 1,055,144 1,055,144 Transfers out: Distribution of excess fees to State of Florida - (1,132,042) - (1,132,042) Distribution of excess appropriations to Collier County, Florida Board of County Commissioners (516,449) - - (516,449) Operating transfers out (1,055,144) - - (1,055,144) Total other financing sources (uses) 13,922,845 (76,898) - 13,845,947 Net change in fund balance - - 1,310,068 1,310,068 Fund balances – beginning of year - - 6,769,541 6,769,541 Fund balances – end of year -$ -$ 8,079,609$ 8,079,609$ Page 1058 of 5415 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, 2024 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 3,397,500$ 3,407,500$ 3,566,803$ 159,303$ Interest income 79,700 524,700 550,126 25,426 Miscellaneous - - 374 374 Total revenues 3,477,200 3,932,200 4,117,303 185,103 Expenditures: General government: Personal services 13,552,900 13,838,000 13,799,507 38,493 Operating expenditures 3,233,500 3,215,200 2,733,855 481,345 Capital outlay 96,800 285,000 1,094,911 (809,911) Debt service principal - - 395,509 (395,509) Debt service interest - - 16,366 (16,366) Total expenditures 16,883,200 17,338,200 18,040,148 (701,948) Excess (deficiency) of revenues over (under) expenditures (13,406,000) (13,406,000) (13,922,845) (516,845) Other financing sources (uses): Leases - - 29,106 29,106 Subscription-based information technology Arrangements - - 784,332 784,332 Transfers in: Collier County, Florida Board of County Commissioners appropriations 14,681,000 14,681,000 14,681,000 - Transfers out: Distribution of excess appropriations to Collier County, Florida Board of County Commissioners - - (516,449) (516,449) Operating transfers out (1,275,000) (1,275,000) (1,055,144) 219,856 Total other financing sources (uses) 13,406,000 13,406,000 13,922,845 516,845 Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budget Page 1059 of 5415 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, 2024 See accompanying Notes to Financial Statements. 7 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Intergovernmental 359,600$ 359,600$ 730,645$ 371,045$ Charges for services 6,825,711 6,825,711 7,691,864 866,153 Interest income 28,000 28,000 63,290 35,290 Total revenues 7,213,311 7,213,311 8,485,799 1,272,488 Expenditures: General government: Personal services 8,151,311 7,874,711 7,833,574 41,137 Operating expenditures 337,000 613,600 575,327 38,273 Total expenditures 8,488,311 8,488,311 8,408,901 79,410 Excess of revenues over expenditures (1,275,000) (1,275,000) 76,898 1,351,898 Other financing uses: Transfers in: Operating transfers in 1,275,000 1,275,000 1,055,144 (219,856) Transfers out: Distribution of excess fees to State of Florida - - (1,132,042) (1,132,042) Total other financing uses 1,275,000 1,275,000 (76,898) (1,351,898) Net change in fund balance - - - - Fund balance – beginning of year - - - - Fund balance – end of year -$ -$ -$ -$ Budg et Page 1060 of 5415 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, 2024 See accompanying Notes to Financial Statements. 8 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Charges for services 1,350,000$ 1,350,000$ 1,082,950$ (267,050)$ Interest income 125,000 125,000 363,557 238,557 Total revenues 1,475,000 1,475,000 1,446,507 (28,493) Expenditures: General government: Personal services 1,392,100 1,392,100 - 1,392,100 Operating expenditures 2,169,500 2,259,500 39,956 2,219,544 Capital outlay 533,250 533,250 13,187 520,063 Debt service principal - - 81,271 (81,271) Debt service interest - - 2,025 (2,025) Total expenditures 4,094,850 4,184,850 136,439 4,048,411 Excess of revenues over expenditures (2,619,850) (2,709,850) 1,310,068 4,019,918 Net change in fund balance (2,619,850) (2,709,850) 1,310,068 4,019,918 Fund balance – beginning of year 4,890,006 6,726,640 6,769,541 42,901 Fund balance – end of year 2,270,156$ 4,016,790$ 8,079,609$ 4,062,819$ Budget Page 1061 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Fiduciary Net Position Custodial Funds September 30, 2024 See accompanying Notes to Financial Statements. 9 Assets Cash and cash equivalents 21,980,470$ Total assets 21,980,470 Liabilities Due to other governments 4,362,084 Total liabilities 4,362,084 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 17,618,386 Total fiduciary net position 17,618,386 Total liabilities and fiduciary net position 21,980,470$ Page 1062 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2024 See accompanying Notes to Financial Statements. 10 Additions Fees/Fines collected for other governments 152,323,225$ Registry and other deposits collected 7,860,181 Total additions 160,183,406 Deductions Fees/Fines disbursed to other governments 152,517,809 Registry and other deposits disbursed 9,258,275 Total deductions 161,776,084 Change in fiduciary net position (1,592,678) Fiduciary net position - beginning of year 19,211,064 Fiduciary net position - end of year 17,618,386$ Page 1063 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 11 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 Florida. 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 fiduciary funds of the Clerk’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 Clerk to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida (the County) that are attributable to the Clerk. They are not intended to present fairly the financial position and results of operations of the County 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 County Annual Comprehensive 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. Page 1064 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 12 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. Page 1065 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 13 1. Summary of Significant Accounting Policies (continued) Governmental Funds (continued) 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. 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 another financing use in the accompanying purpose financial statements. Capital outlays expended in governmental funds are capitalized in the basic financial statements of the County rather than in the governmental funds of the Clerk. Additionally, the Clerk reports the following fund type: Fiduciary Funds – Custodial Funds – Custodial funds are used to account for assets held by the Clerk in a fiduciary capacity or as an agent for individuals, private organizations, and other governments. Custodial funds are accounted for using the 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. Page 1066 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 14 1. Summary of Significant Accounting Policies (continued) 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 440 hours (changed from 240 hours effective January 1, 2024) 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. Employees hired on or after January 1, 2011, are not paid out for unused sick leave upon separation of employment. 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 the County. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as non-spendable fund balance in the fund financial statements, which indicates that these amounts do not constitute “available spendable resources” even though they are a component of current assets. 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. The Clerk’s non-spendable fund balances as of September 30, 2024 were related to postage deposits. Page 1067 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 15 1. Summary of Significant Accounting Policies (continued) Fund Balance Reporting and Governmental Fund-Type Definitions (continued) 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, Fund Balance Reporting and Governmental Fund Type Definitions. The Clerk’s Other Special Revenue funds reported a restricted fund balance of $8,079,609 which includes $2,693,681 for public records modernization and $5,385,928 for court technology. 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 ended September 30, 2024, the Clerk had sufficient revenues to meet expenditures. Page 1068 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 16 2. Budgetary Process (continued) 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 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. The Clerk exceeded appropriations related to capital outlay since the Clerk does not budget for capital outlay related to new leases and Subscription-Based Information Technology Arrangements (SBITA). These items are offset by proceeds from right to use leases and SBITA that are also not budgeted. 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, 2024, the carrying value of the Clerk’s cash and cash equivalents was as follows: Carrying Type Maturity Value Credit Rating Cash on hand N/A 11,200$ N/A Demand deposits N/A 33,685,878 N/A Total cash and cash equivalents 33,697,078$ The Clerk maintains a cash pool for the deposits of all governmental and custodial 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. Page 1069 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 17 3. Cash and Cash Equivalents (continued) Cash and cash equivalents as of September 30, 2024 are reported as $11,716,608 and $21,980,470 in the governmental funds and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2024, 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. Page 1070 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 18 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 $550,126 is reported in the general fund for the year ended September 30, 2024, as the portion of interest earned on Clerk funds. 5. Capital Assets Capital assets used by the governmental fund type operations are capitalized in the basic financial statements of the County rather than in the governmental funds of the Clerk. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk and are capitalized at cost in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at acquisition value on the date received. The Clerk maintains custodial responsibility for capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of the County. The following is a summary of changes in capital assets, which are reported in the basic financial statements of the County: Page 1071 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 19 5. Capital Assets (continued) October 1, Transfer- September 30, 2023 Additions Deductions out 2024 Capital assets not depreciated: Construction in progress subscription-based information technology arrangements 117,653$ -$ -$ (117,653)$ -$ Total assets not depreciated 117,653 - - (117,653) - Capital assets depreciated and amortized Machinery and equipment 6,981,613 281,473 (6,274) - 7,256,812 Right-to-use leased equipment 87,527 29,106 (41,923) - 74,710 Right-to-use subscription-based information technology arrangements 649,232 797,519 (8,392) 117,653 1,556,012 Total assets depreciated and amortized 7,718,372 1,108,098 (56,589) 117,653 8,887,534 Less accumulated depreciation and amortization Machinery and equipment (6,530,610) (215,286) 6,274 - (6,739,622) Right-to-use leased equipment (45,978) (18,030) 41,923 - (22,085) Right-to-use subscription-based information technology arrangements (178,364) (352,773) 8,392 - (522,745) Total accumulated depreciation (6,754,952) (586,089) 56,589 - (7,284,452) and amortization Total capital assets, net 1,081,073$ 522,009$ -$ -$ 1,603,082$ 6. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of the County: October 1, September 30, 2023 Additions Deletions 2024 Accrued compensated absences 2,431,957$ 1,387,455$ (1,317,117)$ 2,502,295$ Of these liabilities, $1,185,178 is expected to be paid during the fiscal year ending September 30, 2025. These long-term liabilities are not reported in the financial statements of the Clerk since they have not matured. Page 1072 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 20 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. Essentially all regular employees of the Clerk are eligible to enroll as members of the State- administered FRS, except for certain re-employed retirees. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. An annual comprehensive 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). Page 1073 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 21 7. 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 (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 if vested, 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 55, if vested, or at any age after 25 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 to eligible participants. Annual cost-of- living adjustments are limited to members initially employed before July 1, 2011. Page 1074 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 22 7. Pension Plans (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 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. 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. Page 1075 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 23 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, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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 Annual Comprehensive 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 Page 1076 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 24 7. Pension Plans (continued) FRS Investment Plan (continued) 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 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, 2024, 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, 2024, 2023, and 2022 were $2,352,909, $2,034,343, and $1,591,676, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County Annual Comprehensive Financial Report or County-wide financial statements. Page 1077 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 25 8. Interfund Transfers During the year, the Clerk’s General Fund transferred $1,055,144 to the Court Services Fund to finance court operations. 9. Related Party Transactions The Board provided funding for the Clerk in the amount of $14,681,000. The Supervisor of Elections provided funding in the amount of a $60,000 fee for financial services performed by the Clerk. At September 30, 2024, the Clerk had a payable due to the Board of $815,266, comprised as follows: Distribution of excess fees 519,686$ Amounts due for various court fees 295,580 Total due to Board of County Commissioners 815,266$ 10. Risk Management The 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, 2024, the Clerk was charged $2,937,645 by the County for participation in the risk management program. Page 1078 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 26 10. Risk Management (continued) The County retains the first $600,000 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 $300,000 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 5 % wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 each claim for public official errors and omissions, automobile liability, 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 $750,000 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. 11. Other Postemployment Healthcare Benefits (OPEB) Plan In accordance with Section 112.0801, Florida Statutes, the Clerk participates with the 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. Page 1079 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 27 12. Commitments and Contingencies Leases 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 County Annual Comprehensive 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, 2024, the Clerk entered into leases in the amount of $29,106. During the year ended September 30, 2024, the Clerk’s payments on leases totaled $19,734. Subscription-Based Information Technology Arrangements The Collier County Clerk contracts for the right to use another party’s information technology software for various terms under certain agreements that meet the definition of a subscription- based information technology arrangement under GASB Statement No. 96 - Subscription-Based Information Technology Arrangements (SBITAs). Detailed information about the Clerk’s SBITAs can be found in the Collier County Annual Comprehensive Financial Report or County- wide financial statements. SBITAs 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 subscription 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, 2024, the Clerk entered into new SBITAs in the amount of $784,332 and payments on SBITAs totaled $475,437. Page 1080 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Notes to Financial Statements September 30, 2024 28 12. Commitments and Contingencies (continued) Litigation The Clerk is routinely involved as defendant, plaintiff and as a “party in interest” in carrying out its statutorily and constitutionally assigned tasks. During the year ended September 30, 2024, the Clerk was involved in approximately 131,766 collection cases. These are court actions designed to collect fees and costs imposed by the courts in criminal cases. The Clerk was involved in 306 bond forfeiture actions. Those cases involve collecting forfeitures of criminal appearance bonds. There are zero active actions for foreclosure of property in which the Clerk has been a named defendant. In the opinion of the Clerk and legal counsel, the range of potential recoveries or liabilities from matters involving litigation will not materially affect the financial position of the Clerk. The Clerk’s Office carries insurance to protect against loss. Page 1081 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Fiduciary Net Position Custodial Funds September 30, 2024 29 Jury and Clerk’s Court Ordinary Total Agency Registry Witness Custodial Funds Assets Cash and cash equivalents 5,913,065$ 16,049,821$ 17,584$ 21,980,470$ Total assets 5,913,065 16,049,821 17,584 21,980,470 Liabilities Due to other governments 4,362,084 - - 4,362,084 Total liabilities 4,362,084 - - 4,362,084 Fiduciary Net Position Restricted for: Individuals, organizations, and other governments 1,550,981 16,049,821 17,584 17,618,386 Total fiduciary net position 1,550,981 16,049,821 17,584 17,618,386 Total liabilities and fiduciary net position 5,913,065$ 16,049,821$ 17,584$ 21,980,470$ Page 1082 of 5415 Collier County, Florida Clerk of the Circuit Court and Comptroller Combining Statement of Changes in Fiduciary Net Position Custodial Funds Year Ended September 30, 2024 30 Jury and Clerk’s Court Ordinary Total Agency Registry Witness Custodial Funds Additions Fees/Fines collected for other governments 152,323,225$ -$ -$ 152,323,225$ Registry and other deposits collected - 7,852,181 8,000 7,860,181 Total additions 152,323,225 7,852,181 8,000 160,183,406 Deductions Fees/Fines disbursed to other governments 152,517,809 - - 152,517,809 Registry and other deposits disbursed - 9,247,547 10,728 9,258,275 Total deductions 152,517,809 9,247,547 10,728 161,776,084 Change in fiduciary net position (194,584) (1,395,366) (2,728) (1,592,678) Fiduciary net position - beginning of year 1,745,565 17,445,187 20,312 19,211,064 Fiduciary net position - end of year 1,550,981$ 16,049,821$ 17,584$ 17,618,386$ Page 1083 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 31 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, 2024, 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 30, 2025. Report on 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) 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 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. Page 1084 of 5415 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller 32 We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2024-001 that we consider to be a material weakness. Report on 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 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 Clerk’s Response to the Finding Government Auditing Standards requires the auditor to perform limited procedures on the Clerk’s response to the finding identified in our audit and described in the accompanying schedule of findings and responses. The Clerk’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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 30, 2025 Page 1085 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 33 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 year ended September 30, 2024, and have issued our report thereon dated January 30, 2025. 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 on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, Schedule of Findings and Responses, 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 30, 2025 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 such findings reported in the prior 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. Page 1086 of 5415 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller 34 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 fraud, waste, or abuse, that has occurred or is likely to have occurred, that has 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 30, 2025 Page 1087 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 35 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, 2024. 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 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. 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, 2024. Page 1088 of 5415 36 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 30, 2025 Honorable Crystal K. Kinzel Clerk of the Circuit Court and Comptroller Page 1089 of 5415 COLLIER COUNTY, FLORIDA CLERK OF THE CIRCUIT COURT AND COMPTROLLER SCHEDULE OF FINDINGS AND RESPONSES YEAR ENDED SEPTEMBER 30, 2024 37 2024 – 001 Audit Adjustments Type of Finding: Material Weakness in Internal Control over Financial Reporting. Condition: As part of the audit, we proposed audit adjustments to correct the Clerk’s accrued wages recorded in Public Records Modernization Fund at year-end. Criteria of specific requirement: 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 Clerk’s ability to ensure financial transactions are authorized and accurate. The Clerk’s management is responsible for establishing and maintaining internal controls for year-end financial reporting and the proper recording of all transactions. Effect: A proposed audit adjustment in the amount of $45,223 was recorded by management to correct the financial statements. Cause: The Clerk’s internal controls over financial reporting did not detect or prevent the misstatements requiring correction. Repeated Finding: No Recommendation: We recommend that Management review and correct the classification of accrued wages to ensure that accruals are recorded in the appropriate fund to match with the related expenditure. We recommend that management strengthen internal controls over the review processes related to the Clerk’s transactions and activity to ensure the financial statements are presented in accordance with accounting principles generally accepted in the United States of America. View responsible official and planned corrective actions: The Clerk’s office will continue to improve and create procedures to make appropriate Journal entries with recommendations from CLA. Page 1090 of 5415 Page 1091 of 5415 Collier County, Florida Property Appraiser Financial Statements and Supplementary Reports Year Ended September 30, 2024 Page 1092 of 5415 Collier County, Florida Property Appraiser Financial Statements and Other Reports Year Ended September 30, 2024 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – General Fund ......................................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund .............................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget (Non-GAAP) and Actual – General Fund ....................................................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 ................................................................22 Management Letter ........................................................................................................................24 Independent Accountants’ Report ..................................................................................................26 Page 1093 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the general fund of the Collier County, Florida, Property Appraiser (the Property Appraiser), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s basic financial statements, as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Property Appraiser as of September 30, 2024, and the changes in financial position and the budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Property Appraiser and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Property Appraiser 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 financial statements are intended to present the financial position and the changes in financial position of only that portion of the general fund of Collier County, Florida that is attributable to the transactions of the Property Appraiser. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2024 and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Page 1094 of 5415 Honorable Abe Skinner Property Appraiser Collier County, Florida 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Property Appraiser’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Page 1095 of 5415 Honorable Abe Skinner Property Appraiser Collier County, Florida 3 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 are 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 December 6, 2024 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 results 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. CliftonLarsonAllen LLP Naples, Florida December 6, 2024 Page 1096 of 5415 Collier County, Florida Property Appraiser Balance Sheet – General Fund September 30, 2024 See accompanying Notes to Financial Statements. 4 Assets Cash and cash equivalents 2,956,084$ Total assets 2,956,084$ Liabilities and fund balance Liabilities: Accounts payable and accrued expenses 230,057$ Due to Collier County, Florida Board of County Commissioners 1,480,175 Due to other taxing districts 1,245,852 Total liabilities 2,956,084 Fund balance - Total liabilities and fund balance 2,956,084$ Page 1097 of 5415 Collier County, Florida Property Appraiser Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2024 See accompanying Notes to Financial Statements. 5 Revenues: Commissions and fees 12,593,993$ Charges for services 245,435 Miscellaneous 6,212 Total revenues 12,845,640 Expenditures: General government: Personal services 7,685,808 Operating 2,308,675 Capital outlay 108,554 Debt service - principal 15,037 Debt service - interest 1,539 Total expenditures 10,119,613 Excess of revenues over expenditures 2,726,027 Other financing sources (uses): Distribution of excess fees and commissions to Collier County, Florida Board of County Commissioners (1,480,175) Distribution of excess fees and commissions to other governmental agencies (1,245,852) Total other financing sources (uses)(2,726,027) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$ Page 1098 of 5415 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, 2024 See accompanying Notes to Financial Statements. 6 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 11,184,360$ 11,200,891$ 11,200,891$ -$ Miscellaneous - - 6,212 6,212 Total revenues 11,184,360 11,200,891 11,207,103 6,212 Expenditures: General government: Personal services 8,790,283 8,806,814 7,685,808 1,121,006 Operating 2,364,077 2,364,077 1,848,459 515,618 Capital outlay 30,000 30,000 - 30,000 Debt service - principal - - 15,037 (15,037) Debt service - interest - - 1,539 (1,539) Total expenditures 11,184,360 11,200,891 9,550,843 1,650,048 Excess of revenues over expenditures - - 1,656,260 1,656,260 Other financing sources (uses): Distribution of excess fees to Collier County, Florida Board of County Commissioners - - (1,480,175) (1,480,175) Distribution of excess commissions and fees to other governmental agencies - - (176,085) (176,085) Total other financing sources (uses) - - (1,656,260) (1,656,260) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Page 1099 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 7 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 Collier County, Florida (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. For financial reporting purposes, the Property Appraiser is deemed to be part of the primary government of the County, and, therefore, is included as such in the County’s Annual Comprehensive Financial Report (ACFR). There are no component units included in the Property Appraiser’s financial statements. 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 ACFR. 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. Page 1100 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 8 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 Property Appraiser’s only governmental fund is the general fund. 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. Charges for services and interest income are recognized as they are earned and become measurable and available to pay liabilities of the current period. 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 fund of the Property Appraiser. Page 1101 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 9 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 another 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 fund when the payments are made to the employees. The Property Appraiser 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 Property Appraiser, but rather is reported in the basic financial statements of the County. Prepaid Expenses The Property Appraiser has elected to follow GASB Codification 1600.127 Other Expenditure Recognition Alternatives and expends costs as they are incurred and does not allocate the cost between periods. Page 1102 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 10 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. 2. 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 from generally accepted accounting principles (GAAP). Certain revenues received from TRIM notices, 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 Page 1103 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 11 2. Budgetary Process (continued) A reconciliation of revenues, expenditures, and other financing uses on a budgetary basis to a GAAP is as follows: Total revenues - budgetary basis 11,207,103$ Revenues not budgeted: Non-ad valorem commissions are not budgeted 1,393,102 TRIM reimbursements are not budgeted 245,435 Total revenues - GAAP basis 12,845,640$ Total expenditures - budgetary basis 9,550,843$ Expenditures not budgeted: Non-ad valorem related expenditures are not budgeted 323,335 TRIM expenditures are not budgeted 245,435 Total expenditures - GAAP basis 10,119,613$ Total other financing sources (uses) - budgetary basis (1,656,260)$ Other financing uses not budgeted: Distribution of non-ad valorem excess fees are not budgeted (1,069,767) Total other financing sources (uses) - GAAP basis (2,726,027)$ Page 1104 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 12 3. Cash At September 30, 2024, the carrying value of the Property Appraiser’s cash was as follows: Carrying Value Cash on hand 125$ Demand deposits 2,955,959 Total cash 2,956,084$ Type Custodial Credit Risk At September 30, 2024, 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 PRIME (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 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. Page 1105 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 13 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, 2024: October 1, September 30, 2023 Additions Deductions 2024 Improvements other than buildings 15,332$ -$ -$ 15,332$ Machinery and equipment 1,583,647 - - 1,583,647 Right-to-use leased equipment 136,628 - (82,443) 54,185 Vehicles - 108,554 - 108,554 Total capital assets 1,735,607 108,554 (82,443) 1,761,718 Accumulated depreciation: Improvements other than buildings (11,010) (927) - (11,937) Machinery and equipment (1,466,256) (32,027) - (1,498,283) Accumulated amortization: Right-to-use leased equipment (85,613) (15,538) 82,443 (18,708) Vehicles - (29,190) - (29,190) Total depreciable capital assets, net (1,562,879) (77,682) 82,443 (1,558,118) Total capital assets, net 172,728$ 30,872$ -$ 203,600$ Page 1106 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 14 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of the County: October 1,September 30, 2023 Increase Decrease 2024 Accrued compensated absences 497,260$ 439,905$ (424,309)$ 512,856$ Of these liabilities, approximately $450,000 is expected to be paid during the fiscal year ending September 30, 2025, 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 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 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 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. An annual comprehensive 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). Page 1107 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 15 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 (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.  Special Risk Administrative Support Class – Members who provide administrative support for a special risk employer. 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, if vested, 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 55, if vested, or at any age after 25 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. Page 1108 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 16 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 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. 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. Page 1109 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 17 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, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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 Annual Comprehensive 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. 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 funds. Page 1110 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 18 6. Pension Plans (continued) FRS Investment Plan (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, 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 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, 2024, 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 Property Appraiser. 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. Page 1111 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 19 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, 2024, 2023, and 2022, were $981,768, $803,360, and $693,093, respectively, equal to the required contributions for each year. Additional information about pension plans can be found in the County’s financial statements. 7. Other Postemployment Benefits In accordance with Section 112.0801, Florida Statutes, the Property Appraiser participates with the 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. 8. Related Party Transactions During the fiscal year ended September 30, 2024, the Board paid fees to the Property Appraiser that amounted to $10,005,329. At September 30, 2024, the Property Appraiser had a payable due to the Board of $1,480,175. Page 1112 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 20 9. Risk Management The 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 Property Appraiser participates in the County’s self-insurance program. During the year ended September 30, 2024, the Property Appraiser was charged $1,234,756 by the County for participation in the risk management program. The County retains the first $600,000 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 $300,000 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 $100,000 deductible for all other perils. The County retains the first $300,000 per claim/$100,000 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 its employees and their eligible dependents. The County retains the first $750,000 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. Page 1113 of 5415 Collier County, Florida Property Appraiser Notes to Financial Statements September 30, 2024 21 10. Commitments and Contingencies Litigation The Property Appraiser is involved as a defendant or plaintiff in 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. 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 County’s financial statements. Leases entered 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 fund balance as they are incurred. During the year ended September 30, 2024, the Property Appraiser did not enter into any new leases. During the year ended September 30, 2024, the Property Appraiser’s payments of principal on leases totaled $15,037. Page 1114 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 22 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 Government 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 (the Property Appraiser), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Property Appraiser’s basic financial statements, and have issued our report thereon dated December 6, 2024. Report on 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) as a basis for designing 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 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 or significant deficiencies may exist that were not identified. Page 1115 of 5415 Honorable Abe Skinner Property Appraiser Collier County, Florida 23 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Property Appraiser’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 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 Government Auditing Standards in considering the Property Appraiser’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida December 6, 2024 Page 1116 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 24 MANAGEMENT LETTER Honorable Abe Skinner Property Appraiser Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Property Appraiser (the Property Appraiser) as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated December 6, 2024. 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 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 December 6, 2024, 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. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Page 1117 of 5415 Honorable Abe Skinner Property Appraiser Collier County, Florida 25 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. 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 fraud, waste or abuse, that has occurred, or is likely to has 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 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 Property Appraiser, 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 December 6, 2024 Page 1118 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 26 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Abe Skinner Property Appraiser Collier County, Florida We have examined the Collier County, Florida, Property Appraiser’s (the Property Appraiser) compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2024. 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. 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, 2024. 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. CliftonLarsonAllen LLP Naples, Florida December 6, 2024 Page 1119 of 5415 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1120 of 5415 Page 1121 of 5415 COLLIER COUNTY, FLORIDA SHERIFF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2024 Page 1122 of 5415 COLLIER COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2024 INDEPENDENT AUDITORS’ REPORT 1 FINANCIAL STATEMENTS BALANCE SHEET – GOVERNMENTAL FUNDS 5 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENT FUNDS 6 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (NON-GAAP) AND ACTUAL – GENERAL FUND 7 STATEMENT OF NET POSITION – INTERNAL SERVICE FUND 8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – INTERNAL SERVICE FUND 9 STATEMENT OF CASH FLOWS – INTERNAL SERVICE FUND 10 STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS 11 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS 12 NOTES TO FINANCIAL STATEMENTS 13 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 36 SUPPLEMENTARY INFORMATION COMBINING STATEMENT OF FIDUCIARY NET POSITION – CUSTODIAL FUNDS 37 COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS 38 Page 1123 of 5415 COLLIER COUNTY, FLORIDA SHERIFF TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2024 OTHER REPORTS INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORT AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 39 MANAGEMENT LETTER 41 INDEPENDENT ACCOUNTANTS’ REPORT 43 INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES 44 Page 1124 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com (1) INDEPENDENT AUDITORS’ REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida Report on the Audit of the Financial Statements Opinions 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, 2024, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements as listed in the table of contents. 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 Sheriff as of September 30, 2024, and the respective changes in financial position, and where applicable, cash flows thereof, and the budgetary comparison for the general fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Sheriff and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Sheriff 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 financial statements are intended to present the financial position, the changes in financial position, and where applicable, cash flows of only that portion of each major fund and the aggregate remaining fund information of Collier County, Florida that is attributable to the transactions of the Sheriff. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2024, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Page 1125 of 5415 Honorable Kevin Rambosk Sheriff (2) Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Sheriff’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Page 1126 of 5415 Honorable Kevin Rambosk Sheriff (3) We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 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, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, 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. Management has omitted the 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 opinions on the basic financial statements are not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Sheriff’s basic financial statements. The combining statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Page 1127 of 5415 Honorable Kevin Rambosk Sheriff (4) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 10, 2025, 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. CliftonLarsonAllen LLP Naples, Florida February 10, 2025 Page 1128 of 5415 COLLIER COUNTY, FLORIDA SHERIFF BALANCE SHEET – GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (5) Grant Other Nonmajor Special Prisoner Special Revenue General Revenue Fund Welfare Funds Total ASSETS Cash and Cash Equivalents 15,700,076$ 2,559,534$ 4,746,544$ -$23,006,154$ Accounts Receivable 147,629 --- 147,629 Other Receivable 66,293 -46,474 - 112,767 Due from Other Funds 156,113 -68,621 - 224,734 Due from Other Governments 87,431 608,754 -- 696,185 Due from Collier County, Florida Board of County Commissioners -300,845 - 499,465 800,310 Prepaid Items 52,462 --- 52,462 Total Assets 16,210,004$ 3,469,133$ 4,861,639$ 499,465$ 25,040,241$ LIABILITIES, DEFERRED INFLOW OF RESOURCES, AND FUND BALANCES LIABILITIES Accounts Payable 2,334,939$ 68,339$ 21,021$ 421,048$ 2,845,347$ Accrued Liabilities 13,620,385 12,542 5,717 19,199 13,657,843 Due to Other Funds --84,039 59,218 143,257 Due to Collier County, Florida Board of County Commissioners 238,407 25 -- 238,432 Unearned Revenue 3,361 9,322 -- 12,683 Total Liabilities 16,197,092 90,228 110,777 499,465 16,897,562 DEFERRED INFLOW OF RESOURCES Unavailable Revenue - Grants -47,429 -- 47,429 Total Deferred Inflow of Resources -47,429 -- 47,429 FUND BALANCES Nonspendable - Prepaid Items 52,462 --- 52,462 Restricted -3,331,476 4,750,862 - 8,082,338 Unassigned (39,550) --- (39,550) Total Fund Balance 12,912 3,331,476 4,750,862 - 8,095,250 Total Liabilities, Deferred Inflow of Resources, and Fund Balances 16,210,004$ 3,469,133$ 4,861,639$ 499,465$ 25,040,241$ Page 1129 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (6) Grant Other Nonmajor Special Prisoner Special Revenue General Revenue Fund Welfare Funds Total REVENUES Grant Revenue 32,085$ 3,274,037$ -$ -$ 3,306,122$ Charges for Services 2,110,098 - 1,204,522 - 3,314,620 Total Revenues 2,142,183 3,274,037 1,204,522 - 6,620,742 EXPENDITURES General Government: Personal Services 5,864,603 - - - 5,864,603 Operating Expenditures 96,086 - - - 96,086 Public Safety: Personal Services 195,056,548 743,412 401,384 666,531 196,867,875 Operating Expenditures 41,570,124 1,715,827 185,541 1,398,068 44,869,560 Capital Outlay 16,611,840 318,505 - 905,421 17,835,766 Debt Service - Principal 1,405,408 18,903 - - 1,424,311 Debt Service - Interest 265,840 1,490 - - 267,330 Total Expenditures 260,870,449 2,798,137 586,925 2,970,020 267,225,531 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (258,728,266) 475,900 617,597 (2,970,020) (260,604,789) OTHER FINANCING SOURCES (USES) Leases 274,311 - - - 274,311 SBITA 7,187,935 - - - 7,187,935 Insurance Proceeds 608,399 608,399 Transfers In: Collier County, Florida Board of County Commissioners Appropriations 250,246,100 - - - 250,246,100 Collier County, Florida Board of County Commissioners 550,000 - - 2,970,020 3,520,020 Transfers Out: Distribution of Excess Appropriations to Collier County, Florida Board of County Commissioners (153,557) - - - (153,557) Total Other Financing Sources (Uses) 258,713,188 - - 2,970,020 261,683,208 NET CHANGE IN FUND BALANCES (15,078) 475,900 617,597 - 1,078,419 Fund Balances - Beginning of Year 27,990 2,855,576 4,133,265 - 7,016,831 FUND BALANCES - END OF YEAR 12,912$ 3,331,476$ 4,750,862$ -$ 8,095,250$ Page 1130 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE – BUDGET (NON-GAAP) AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (7) Variance With Budget Budget Positive Original Final Actual (Negative) REVENUES Charges for Services -$ 1,844,000$ 2,110,098$ 266,098$ Total Revenues - 1,844,000 2,110,098 266,098 EXPENDITURES General Government: Personal Services 5,914,800 5,914,800 5,864,603 50,197 Operating Expenditures 181,800 181,800 96,086 85,714 Public Safety: Personal Services 197,343,800 199,087,800 195,056,548 4,031,252 Operating Expenditures 40,768,400 40,868,400 41,570,124 (701,724) Capital Outlay 6,037,300 6,037,300 16,061,840 (10,024,540) Debt Service - Principal - - 1,405,408 (1,405,408) Debt Service - Interest - - 265,840 (265,840) Total Expenditures 250,246,100 252,090,100 260,320,449 (8,230,349) EXCESS OF EXPENDITURES OVER REVENUES (250,246,100) (250,246,100) (258,210,351) (7,964,251) OTHER FINANCING SOURCES (USES) Leases - - 274,311 274,311 SBITA - - 7,187,935 7,187,935 Insurance Proceeds 608,399 608,399 Transfers In: Collier County, Florida Board of County Commissioners Appropriations 250,246,100 250,246,100 250,246,100 - Other Funds - - Transfers Out:- - Grant and Other Special Revenue Funds - - - - Distribution of Excess Appropriations to Collier County, Florida Board of County Commissioners - - (153,557) (153,557) Total Other Financing Sources 250,246,100 250,246,100 258,163,188 7,917,088 NET CHANGE IN FUND BALANCE - - (15,078) (15,078) Nonspendable Fund Balance - Beginning of Year - - 27,990 27,990 NONSPENDABLE FUND BALANCE - END OF YEAR -$ -$ 12,912$ 12,912$ Total Revenues - Budgetary Basis 2,110,098$ Revenues not Budgeted: Revenues for Disaster Cost Reimbursements that are not Budgeted 32,085 Total Revenues - GAAP Basis 2,142,183$ Total Expenditures - Budgetary Basis 260,320,449$ Expenditures not Budgeted: Expenditures for Multi-Period Projects that are not Budgeted 550,000 Total Expenditure - GAAP Basis 260,870,449$ Total Other Financing Sources - Budgetary Basis 258,163,188$ Transfers in from Collier County Florida Board of County Commissioners (Nonappropriations)550,000 Total Other Financing Sources (Uses) - GAAP Basis 258,713,188$ Page 1131 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF NET POSITION – INTERNAL SERVICE FUND SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (8) ASSETS Cash and Cash Equivalents 5,016,650$ Investments 12,933,635 Due from Stop Loss 297,398 Interest Receivable 40,152 Total Assets 18,287,835 LIABILITIES Self Insurance Claims Payable 4,311,000 Unearned Revenue 118,851 Total Liabilities 4,429,851 NET POSITION Unrestricted 13,857,984 Total Net Position 13,857,984$ Page 1132 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION – INTERNAL SERVICE FUND YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (9) OPERATING REVENUES Charges for Services 32,961,240$ Total Operating Revenues 32,961,240 OPERATING EXPENSES Claims and Claims Expenses 30,241,294 Reinsurance Premiums 3,426,651 Administrative and Other Expenses 687,548 Total Operating Expenses 34,355,493 OPERATING INCOME (1,394,253) NONOPERATING REVENUES Interest Income, Net of Management Fees 263,737 Net Increase in Fair Value of Investments 771,986 Total Nonoperating Revenues 1,035,723 CHANGE IN NET POSITION (358,530) Net Position - Beginning of Year 14,216,514 NET POSITION - END OF YEAR 13,857,984$ Page 1133 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF CASH FLOWS – INTERNAL SERVICE FUND YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (10) CASH FLOWS FROM OPERATING ACTIVITIES Cash Payments for Claims and Claims Related Services (29,484,077)$ Cash Payments for Reinsurance Premiums (3,426,651) Cash Payments for Administrative Services and Supplies (687,548) Cash Received from Other Funds for Services 31,350,000 Cash Received from Retirees for Services 1,621,896 Net Cash Used by Operating Activities (626,380) CASH FLOWS FROM INVESTING ACTIVITIES Interest Earnings, Net of Management Fees 364,140 Purchase of Securities (2,328,254) Proceeds from Sales and Maturities of Securities 1,484,525 Net Cash Used by Investing Activities (479,589) NET DECREASE IN CASH AND CASH EQUIVALENTS (1,105,969) Cash, Cash Equivalents, and Investments - Beginning of Year 6,122,619 CASH AND CASH EQUIVALENTS - END OF YEAR 5,016,650$ RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating Loss (1,394,253)$ Adjustments to Reconcile Operating Loss to Net Cash Used by Operating Activities: Increase in Due from Stop Loss 250,217 Increase in Self-Insurance Claims Payable 507,000 Increase in Unearned Revenue 10,656 Net Cash Used by Operating Activities (626,380)$ SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES Change in Fair Value of Investments 615,013$ Page 1134 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (11) Private Purpose Trust Fund Custodial Funds ASSETS Cash and Cash Equivalents 404,783$ 408,007$ Due from Individuals and Businesses - 12,781 Total Assets 404,783 420,788 LIABILITIES Due to Other Funds - 81,477 Due to Other - 10,137 Total Liabilities - 91,614 FIDUCIARY NET POSITION Restricted for: Individuals and Organizations 404,783$ 329,174$ Page 1135 of 5415 COLLIER COUNTY, FLORIDA SHERIFF STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (12) Private Purpose Trust Fund Custodial Funds ADDITIONS Contributions: Individuals 563,290$ 3,902,479$ Fees Collected for Other Governments -292,898 Miscellaneous -16,323 Total Additions 563,290 4,211,700 DEDUCTIONS Beneficiary Payments to Individuals 534,312 3,903,151 Payment of Fees to Other Governments -174,402 Payments to Other Entities -368,947 Total Deductions 534,312 4,446,500 NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION 28,978 (234,800) Fiduciary Net Position - Beginning of Year 375,805 563,974 FIDUCIARY NET POSITION - END OF YEAR 404,783$ 329,174$ Page 1136 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (13) NOTE 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 fiduciary 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, results of operations, or where applicable, the cash flows 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, 2024 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 Annual Comprehensive Financial Report. 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. However, the Sheriff currently has $52,462 in nonspendable fund balance to account for prepaid items that cover multiple fiscal years. This nonspendable fund balance will be reduced each fiscal year proportionate to the expenditure incurred for each fiscal year until the balance is $-0-. Page 1137 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (14) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) 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, debt service principal and interest on leases, and SBITAs 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. 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. Page 1138 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (15) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) Governmental Funds (Continued) The Sheriff has three 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. The Sheriff also has the following nonmajor funds: Reported as Other Nonmajor 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 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. Page 1139 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (16) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued) Governmental Funds (Continued) 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 Custodial Funds – These funds are used to account for assets held by the Sheriff as an agent for individuals, private organizations, and other governments. Custodial funds are custodial in nature. Custodial funds are accounted for using the accrual basis of accounting. Private Purpose Trust Fund – These funds are used to account for flexible spending contributions from agency members. The private purpose trust fund is accounted for using the accrual basis of accounting. 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. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods. The operating revenues of the internal service fund consists of charges for services. Operating expenses include claims, stop loss premiums, and other administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Cash Equivalents and Investments Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Page 1140 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (17) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash Equivalents and Investments (Continued) 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, 2024, Florida PRIME contained certain floating and adjustable rate securities. These investments represented 27.9% of Florida PRIME’s portfolio at September 30, 2024. 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. 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. 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. At September 30, 2024, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100% of their account value. Page 1141 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (18) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Receivables Receivables are recorded when measurable and available. These include amounts due from grants and other governmental entities. Receivables are reported net of allowances for uncollectible amounts, which are estimated based on historical collection data and current economic conditions. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as nonspendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute “available spendable resources” even though they are a component of current assets. Deferred Inflows of Resources Under the modified accrual basis of accounting, deferred inflows of resources also include revenues not collected within the availability period after the fiscal year-end. The Sheriff has reported deferred inflows of resources related to unavailable grants, These amounts are deferred and will be recognized as an inflow of resources in the period that amounts become available. 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 600 hours of unused vacation leave. 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 immature 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. 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/expenses 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 nonspendable 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. Nonspendable 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. Page 1142 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (19) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance Reporting and Governmental Fund-Type Definitions (Continued) The Sheriff has $52,462 as a nonspendable fund balance as of September 30, 2024. 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 and Prisoner Welfare Fund fall into this category. Fund balances maintained in the Grant Special Revenue Fund and Prisoner Welfare 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 reported as restricted fund balances. The Sheriff has implemented fund balance and spending policies to clearly define the process for tracking the various classifications of fund balance. The policy states when an expenditure is incurred in which restricted, committed, assigned or unassigned amounts are available to be used, the Sheriff will first use restricted amounts, then committed, then assigned amounts, and finally unassigned amounts. NOTE 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 certain expenditures for long-term projects which are reimbursed by the Board, and mutual aid reimbursements for previous year expenditures are not budgeted. Any subsequent amendments to the budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. The Sheriff exceeded appropriations related to capital outlay, the budget was not amended for these additional capital outlay expenditures. 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 fund does not have a legally adopted budget. 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. Page 1143 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (20) NOTE 3 CASH, CASH EQUIVALENTS, AND INVESTMENTS At September 30, 2024, the carrying value of the Sheriff’s cash, cash equivalents, and investments was as follows: Type Maturity Carrying Value Credit Rating * Cash on Hand N/A 19,446$ N/A Demand Deposits N/A 27,922,596 N/A Local Government Surplus Funds Trust Fund: Florida Prime (SBA) N/A 893,552 AAAm Total Cash and Cash Equivalents 28,835,594 Money Market N/A 42,837 Not rated Federal Home Loan Bank 1/15/2025 493,315 AA+ Federal Home Loan Bank STEP 1/29/2026 240,753 AA+ Federal Home Loan Bank 1/29/2026 239,145 AA+ Federal Home Loan Bank 7/18/1905 477,910 AA+ Federal Home Loan Bank STEP 2/18/2026 481,850 AA+ Federal Home Loan Bank 2/26/2027 130,519 AA+ Federal Home Loan Bank STEP 3/23/2026 485,155 AA+ Federal Home Loan Bank 12/9/2024 248,105 AA+ Federal Home Loan Bank 3/28/2025 236,458 AA+ Federal Home Loan Bank 9/30/2026 490,815 AA+ Federal Farm Credit Bank 8/3/2026 94,670 AA+ Federal Farm Credit Bank 9/16/2025 483,570 AA+ Federal Farm Credit Bank 9/1/2026 473,390 AA+ Federal Farm Credit Bank 10/15/2024 499,140 AA+ Federal Farm Credit Bank 1/13/2025 389,999 AA+ Federal Farm Credit Bank 2/4/2026 238,943 AA+ Federal Farm Credit Bank 2/10/2025 492,310 AA+ Federal Home Loan Mortgage Corp. 7/30/2026 118,370 Aaa Federal Home Loan Mortgage Corp. 10/20/2025 474,596 Aaa Federal Home Loan Mortgage Corp. 6/23/2026 340,814 Aaa Federal Home Loan Mortgage Corp. 1/7/2026 241,920 Aaa Federal Home Loan Mortgage Assn. 11/25/2025 482,215 AA+ Treasury Note 3/31/2025 495,815 AA+ Treasury Note 5/31/2025 487,085 AA+ Treasury Note 8/31/2028 910,430 AA+ Treasury Note 11/30/2026 451,621 AA+ Treasury Note 8/28/2027 240,030 AA+ Treasury Note 4/15/2025 495,690 AA+ Treasury Note 11/15/2025 503,185 AA+ Treasury Note 2/29/2028 815,626 AA+ Treasury Note 11/25/2026 637,356 AA+ Total Investments 12,933,635 Total Cash, Cash Equivalents, and Investments 41,769,229$ *Credit ratings are Standard & Poor ratings except for FHLMC which are Moody ratings. Page 1144 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (21) NOTE 3 CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED) The total cash, cash equivalent and investments balances at September 30, 2024, were as follows: General Fund 15,700,076$ Grant Special Revenue Fund 2,559,534 Prisoner Welfare Fund 4,746,544 Internal Service Fund 17,950,285 Custodial Funds 812,790 Total 41,769,229$ Custodial Credit Risk At September 30, 2024, 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. 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, 2024, the Sheriff had $893,552 invested in Florida PRIME. Florida PRIME is rated “AAAm” by Standard and Poor’s. Interest Rate Risk The Sheriff has no specific investment policy regarding interest rate risk. Page 1145 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (22) NOTE 3 CASH, CASH EQUIVALENTS, AND INVESTMENTS (CONTINUED) 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, money market accounts, 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, 2024: % of Portfolio Money Market 0% Treasury Notes 39% Federal Home Loan Mortgage Corp. 9% Federal Home Loan Mortgage Assn. 4% Federal Home Loan Bank 27% Federal Farm Credit Bank 21% Total 100% 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, 2024: 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. Page 1146 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (23) NOTE 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 county’s basic financial statements. 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, 2023 Additions Reclassifications 2024 Governmental Activities: Capital Assets not Depreciated: Construction in Progress 1,297,147$ 3,149,295$ (1,273,242)$ 3,173,200$ Construction in Progress - Right-of-Use Leased Equipment - 454,508 - 454,508 Total Capital Assets not Depreciated 1,297,147 3,603,803 (1,273,242) 3,627,708 Capital Assets Depreciated and Amortized: Machinery and Equipment 129,749,303 7,570,165 (5,272,224) 132,047,244 Right-of-Use Leased Equipment 597,028 274,311 (145,562) 725,777 Subscription Based Information Technology Arrangements 3,233,709 7,187,935 - 10,421,644 Total Capital Assets Depreciated 133,580,040 15,032,411 (5,417,786) 143,194,665 Less: Accumulated Depreciation and Amortization: Machinery and Equipment (88,140,739) (13,673,986) 6,375,232 (95,439,493) Right-of-Use Leased Equipment (335,964) (191,885) 145,562 (382,287) Subscription Based Information Technology Arrangements (580,983) (1,973,293) - (2,554,276) Total Accumulated Depreciation and Amortization (89,057,686) (15,839,164) 6,520,794 (98,376,056) Total Depreciable Capital Assets, Net 44,522,354 (806,753) 1,103,008 44,818,609 Total Governmental Activities Capital Assets, Net 45,819,501$ 2,797,050$ (170,234)$ 48,446,317$ Page 1147 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (24) NOTE 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,Deductions/ September 30, 2023 Additions Reclassifications 2024 Compensated Absences 26,276,501$ 7,758,866$ (4,546,470)$ 29,488,897$ Of these liabilities, approximately $1,375,000 is expected to be paid during the fiscal year ending September 30, 2025. These long-term liabilities are not reported in the financial statements of the Sheriff since they have not matured. Leases 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 Annual Comprehensive 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, 2024, the Sheriff entered into leases in the amount of $274,311. During the year ended September 30, 2024, the Sheriff’s principal and interest payments on leases totaled $202,415. Subscription-Based Information Technology Arrangements (SBITAs) The Sheriff utilizes licensing agreement of various terms for the right to use another party’s computer software that meets the definition of a subscription-based information technology agreement (SBITA) under GASB Statement No. 96- Subscription-Based Information Technology Arrangements. Detailed information about the Sheriff’s SBITAs can be found in the Collier County Annual Comprehensive Financial Report or County-wide financial statements. SBITAs 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, 2024, the Sheriff entered into SBITAs in the amount of $7,187,935. During the year ended September 30, 2024, the Sheriff’s principal and interest payments on leases totaled $1,489,226. Page 1148 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (25) NOTE 6 INTERFUND BALANCES AND TRANSFERS Due from and due to other funds at September 30, 2024, were as follows: Due From Due To General Fund 156,113$ -$ Prisoner Welfare Fund 68,621 84,039 Other Nonmajor Special Revenue Funds -59,218 Fiduciary Funds -81,477 Total 224,734$ 224,734$ Interfund receivables and payables generally represent recurring activities between funds. NOTE 7 RELATED PARTY TRANSACTIONS The Board provided funding for the Sheriff for the year of $250,246,100. At September 30, 2024, the Sheriff had a payable due to the Board of $238,432 comprised of the following: General Fund: Distributions of Excess Appropriations 153,557$ Distribution of Interest Collected 57,611 Miscellaneous Payables 27,264 Total 238,432$ Additionally, the Sheriff had a receivable from the Board related to services provided to the County of $800,310 at September 30, 2024. NOTE 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. Page 1149 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (26) NOTE 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 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. An annual comprehensive 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 (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. 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. Employees enrolled in the FRS Plan prior to July 1, 2011, vest at six 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, if vested, or at any age after 25 years of service. Page 1150 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (27) NOTE 8 PENSION PLANS (CONTINUED) Florida Retirement System Pension Plan (Continued) Plan Description (Continued) 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 55, if vested, or at an age after 25 years of service. Employees enrolled in the FRS Plan may include up to four 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 eight years after electing to participate, except that certain instructional personnel may participate for up to 10 years. 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 five highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight 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. Page 1151 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (28) NOTE 8 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, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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 Plan Description 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 Annual Comprehensive 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% of payroll and by forfeited benefits of plan members. Page 1152 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (29) NOTE 8 PENSION PLANS (CONTINUED) FRS Investment Plan (Continued) Benefits Provided For all membership classes, employees are immediately vested in their own contributions and are vested after one 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. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended June 30, 2024, 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. 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, 2024, 2023, and 2022 were $33,264,308, $28,542,478, and $24,143,503, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s annual comprehensive financial report. NOTE 9 RETIREMENT PLANS The Sheriff offers two additional plans for its members to save for retirement, a voluntary Section 457(b) deferred compensation plan and a Section 401(a) deferred compensation plan. 457(b) Deferred Compensation Plan The 457(b) deferred compensation plan is voluntary and open to all full-time members of the Sheriff. The 457(b) plan has a pre-tax and Roth contribution options. The plan is funded through employee contributions only, there is no employer match, and therefore the employee is always fully vested in their own contributions. Contribution levels allowed under the plan follow all IRS guidelines. Page 1153 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (30) NOTE 9 RETIREMENT PLANS (CONTINUED) 457(b) Deferred Compensation Plan (Continued) The plan allows for the catch-up contribution option for participants ages 50 and older. Contributions to the plan are not considered income until paid or made available to them. The record-keeper for the 457(b) plan is Nationwide, Equitable, Corebridge and Voya. The majority of the asset of the 457(b) plans are administered by Nationwide. The asset to the plan are held in a trust. The Sheriff has an Investment Advisor who is a plan fiduciary for the plan. The Sheriff has an Investment Committee comprised of a cross section of agency members that monitors the plan’s investments and record-keepers. 401(a) Deferred Compensation Plan In 2024, the Sheriff established a new 401(a) deferred compensation plan to address retention of executive level members that have specialized skill set and institutional knowledge. The 401(a) plan is open to members at the Captain and Director level and above. The 401(a) plan is funded through employer contributions solely, there are no employee contributions allowed. Contribution levels allowed under the plan follow all IRS guidelines. The level of pre-tax contribution to the 401(a) plan is set at a fixed percentage of each members pay but can be changed by the plan sponsor (the Sheriff) each plan year based on budgetary considerations. Members in the 401(a) plan are vested after two years of service with the Sheriff. Contribution to the plan are not considered income until distributed after retirement. The record-keeper for 401(a) plan is Nationwide. The asset to the plan are held in a trust. The Sheriff has an Investment Advisor who is a plan fiduciary for the plan. The Sheriff has an Investment Committee comprised of a cross section of agency members that monitors the plan’s investments and record-keepers. NOTE 10 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 9% of retirees receive the subsidy. Page 1154 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (31) NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Plan Description (Continued) 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, 2024, the Sheriff’s plan participation consisted of: Active Employees 1,136 Inactive Employees or Beneficiaries Currently Receiving Benefit Payments 162 Funding Policy The Sheriff has the authority to establish and amend the funding policy. The OPEB Plan is currently being funded on a pay-as-you go basis. No trust fund has been established for the plan. Total OPEB Liability The Sheriff’s OPEB liability of $47,121,910 was measured as of September 30, 2024, and was determined by an actuarial valuation as of October 1, 2024. The following table shows the changes in the Sheriff’s total OPEB liability for the year ended September 30, 2024. Total OPEB Liability Balance, as of October 1, 2023 37,627,575$ Changes: Service Cost 838,265 Interest 1,525,269 Differences Between Expected and Actual Experience 6,781,811 Changes in Assumptions or Other Inputs 2,695,381 Benefit Payments (2,346,391) Net Changes 9,494,335 Balance, as of September 30, 2024 47,121,910$ 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: 1% Decrease Discount Rate 1% Increase (2.81%) (3.81%) (4.81%) Total OPEB Liability 51,244,616$ 47,121,910$ 43,498,520$ Page 1155 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (32) NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) 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 2% point lower (6% decreasing to 4%) or 2% point higher (8% decreasing to 6%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (6.00%/4.00%)(7.00%/5.00%)(8.00%/6.00%) Total OPEB Liability 43,332,534$ 47,121,910$ 51,471,215$ Healthcare Rate Sensitivity Deferred Outflows and Inflows of Resources Related to OPEB For the year ended September 30, 2024, the Sheriff’s OPEB expense was $5,403,349. In addition, the Sheriff had deferred outflow of resources and deferred inflow of resources from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Differences Between Expected and Actual Experience 21,848,121$ 4,090$ Changes in Assumptions 3,972,578 4,732,162 Total 25,820,699$ 4,736,252$ Amounts reported as net deferred outflows of resources and deferred inflows of resources as an increase/decrease to OPEB expense will be recognized as follows: Net Deferred Outflows of Year Beginning October 1,Resources 2024 4,712,673$ 2025 4,583,698 2026 4,267,583 2027 3,416,417 2028 2,954,819 Thereafter 1,149,257 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. Page 1156 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (33) NOTE 10 OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) Actuarial Methods and Assumptions (Continued) Calculations for financial reporting purposes are based on 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 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: 3.81% (20-year AA Municipal bond rate) Healthcare Cost Trend Rate: 7% Salary Increase: 3% New Employees: None Mortality rates were based on the Pri-2012 Mortality Tables, separated for males and females and for employees and retirees, projected using Generational Projection Scale MP- 2021 for retirees and dependents separately. The following changes have been made since the prior year valuation: The discount rate was changed from 4.09% to 3.81% The health care claim cost assumption has been updated to reflect experience through August 31, 2024. The health care trend assumption has been updated from 6.5% grading down to 5.0% over six years to 7.0% grading down to 5.0% over eight years. Benefits for current Medicare eligible retirees enrolled in the health plans are being valued at their current contribution rates. NOTE 11 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. Page 1157 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (34) NOTE 11 SELF-INSURANCE PROGRAM (CONTINUED) 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 FY24 there was one covered individual who had a higher deductible amount because of a history of high claims. This individual had a deductible of $700,000. Specific claim excess coverage for this individual is for claims exceeding $700,000. The maximum annual individual stop loss payment amount is unlimited. Payments to the internal service fund are based on actuarial estimates of amounts needed to pay prior year and current year claims including claims incurred but not yet reported. The Sheriff’s Office uses a Third-Party Administrator (TPA) to administer and pay claims for the health plan. Meritain Health, Inc. has been the TPA since July 1, 2013. Changes in the balance of estimated insurance claims payable for the fiscal year ended September 30, 2024 and 2023 are as follows: New Claims Balance and Changes Claim Balance Fiscal Year Ending: October 1 in Estimates Payments September 30 2023 3,465,000$ 28,777,299$ (28,438,299)$ 3,804,000$ 2024 3,804,000 29,991,077 (29,484,077) 4,311,000 NOTE 12 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. Page 1158 of 5415 COLLIER COUNTY, FLORIDA SHERIFF NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2024 (35) NOTE 12 COMMITMENTS AND CONTINGENCIES (CONTINUED) 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. Page 1159 of 5415 COLLIER COUNTY, FLORIDA SHERIFF REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS SEPTEMBER 30, 2024 (36) 20242023202220212020201920182017Total OPEB LiabilityService Cost838,265$ 778,361$ 734,513$ 777,037$ 555,065$ 485,365$ 520,082$ 491,420$ Interest1,525,269 1,080,092 422,604 448,520 435,838 631,825 503,525 502,621 Differences Between Expected and Actual Experience6,781,811 5,877,459 10,708,734 4515,292,054 - 2,048,462(83,607) Changes in Assumptions or Other Inputs2,695,381 (883,713) (5,446,075) 353,427 949,878 2,250,569 (898,977)-Benefit Payments(2,346,391) (2,352,648) (1,461,666) (1,329,954) (1,098,451) (1,074,207) (941,061) (871,353) Net Change in Total OPEB Liability9,494,335 4,499,551 4,958,110 249,481 6,134,384 2,293,552 1,232,031 39,081 Total OPEB Liability, Beginning37,627,575 33,128,024 28,169,914 27,920,433 21,786,049 19,492,497 18,260,466 18,221,385 Total OPEB Liability, Ending47,121,910$ 37,627,575$ 33,128,024$ 28,169,914$ 27,920,433$ 21,786,049$ 19,492,497$ 18,260,466$ Covered-Employee Payroll107,517,934$ 100,636,180$ 95,742,481$ 87,324,387$ 85,054,216$ 82,604,011$ 80,473,682$ 79,806,491$ Total OPEB Liability as a Percentage of Covered-Employee Payroll43.83%37.39% 34.60% 32.26% 32.83% 26.37% 24.22% 22.88%Notes to Schedule Changes in Assumptions: Change in the discount rate of 4.09% as of September 30, 2023 to 3.81% as of September 30, 2024. The mortality assumption used was the PRI-2012 Mortality Table, separated for males and females and for employees and retirees, projected using Generational Projection Scale MP-2021 for retirees and dependents separately. 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. Page 1160 of 5415 COLLIER COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF FIDUCIARY NET POSITION – CUSTODIAL FUNDS SEPTEMBER 30, 2024 (37) TotalCivil Evidence Inmate CustodialCustodial Fund Custodial Fund Custodial Fund Explorers FundsASSETSCash and Cash Equivalents 33,575$ 229,336$ 101,800$ 43,296$ 408,007$ Due from Individuals and Businesses --12,781 -12,781Total Assets33,575 229,336 114,581 43,296 420,788 LIABILITIESDue to Other Funds--81,477 -81,477Due to Others --10,137 -10,137Total Liabilities--91,614 -91,614FIDUCIARY NET POSITIONRestricted for Individuals and Organizations33,575$ 229,336$ 22,967$ 43,296$ 329,174$ Page 1161 of 5415 COLLIER COUNTY, FLORIDA SHERIFF COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – CUSTODIAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 (38) TotalCivil Evidence Inmate CustodialCustodial Fund Custodial Fund Custodial Fund ExplorersFundsADDITIONSContributions:Individuals-$-$3,892,832$ 9,647$ 3,902,479$ Fees Collected for Other Governments292,898 ---292,898 Miscellaneous-16,323- -16,323 Total Additions292,898 16,323 3,892,832 9,6474,211,700 DEDUCTIONSBeneficiary Payments to Individuals-1,6373,901,514 -3,903,151Payment of Fees to Other Governments174,402 -- -174,402 Payments to Other Entities361,260 -- 7,687368,947 Total Deductions535,662 1,637 3,901,514 7,6874,446,500 NET INCREASE (DECREASE) IN FIDUCIARY NET POSITION(242,764) 14,686 (8,682) 1,960(234,800) Fiduciary Net Position - Beginning of Year276,339 214,650 31,649 41,336 563,974 FIDUCIARY NET POSITION - END OF YEAR33,575$ 229,336$ 22,967$ 43,296$ 329,174$ Page 1162 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com (39) 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, 2024, and the related notes to the financial statements, which collectively comprise the Sheriff’s basic financial statements, and have issued our report thereon dated February 10, 2025. Report on 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 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 the 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 or significant deficiencies may exist that were not identified. Page 1163 of 5415 Honorable Keving Rambosk Sheriff (40) Report on 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 February 10, 2025 Page 1164 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com (41) MANAGEMENT LETTER Honorable Kevin Rambosk Sheriff Collier County, Florida 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, 2024, and have issued our report thereon dated February 10, 2025. 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 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 February 10, 2025, 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 recommendations made in the preceding annual financing 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. Page 1165 of 5415 Honorable Keving Rambosk Sheriff (42) 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 fraud, waste, or abuse, that have occurred, or is likely to have occurred, that has 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, and the Sheriff 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 February 10, 2025 Page 1166 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com (43) 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, 2024. Management of the Sheriff is responsible for the Sheriff’s compliance with the specified requirements. Our responsibility is to express an opinion on 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Sheriff’s 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, 2024. 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. CliftonLarsonAllen LLP Naples, Florida February 10, 2025 Page 1167 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT ACCOUNTANTS' REPORT Honorable Kevin Rambosk Sheriff Collier County, Florida We have performed the procedures enumerated below related to the Collier County, Florida, Sheriff’s (Sheriff) compliance with its policies and procedures as defined by the Sheriff over its investigative funds during the year ended September 30, 2024. The Sheriff’s management is responsible for its compliance with those requirements. The Sheriff has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of applying procedures and reporting associated findings related to the Sheriff's compliance with specified requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures and the associated findings are as follows: We randomly selected 25 investigative fund disbursements during the fiscal year ended September 30, 2024 (the population sampled included transactions from October 1, 2023 through September 30, 2024), 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. We were engaged by the Sheriff to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Sheriff’s compliance with specified requirements. 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. Page 1168 of 5415 Honorable Kevin Rambosk Sheriff Collier County, Florida Page 2 We are required to be independent of the Sheriff and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Sheriff and the management of the Sheriff and is not intended to be, and should not be, used by anyone other than these specified parties. CliftonLarsonAllen LLP Naples, Florida December 16, 2024 Page 1169 of 5415 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1170 of 5415 Page 1171 of 5415 Collier County, Florida Supervisor of Elections Financial Statements and Supplemental Reports Year Ended September 30, 2024 Page 1172 of 5415 Collier County, Florida Supervisor of Elections Financial Statements and Other Reports Year Ended September 30, 2024 Contents Independent Auditors’ Report ..........................................................................................................1 Financial Statements Balance Sheet – Governmental Funds .............................................................................................4 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....................................................................................................................5 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund ..................................................................................................................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 ..............................................22 Management Letter ........................................................................................................................24 Independent Accountants’ Report ..................................................................................................26 Page 1173 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Melissa Blazier Supervisor of Elections Collier County, Florida Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the general fund of the Collier County, Florida, Supervisor of Elections (Supervisor), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Supervisor’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the general fund of the Supervisor as of September 30, 2024, and the respective changes in financial position and budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Supervisor and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter As discussed in Note 1, the financial statements of the Supervisor 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 financial statements are intended to present the financial position and changes in financial position of only that portion of the general fund of Collier County, Florida that is attributable to the transactions of the Supervisor. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2024, 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. Page 1174 of 5415 Honorable Melissa Blazier Supervisor of Elections 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Supervisor’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 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. Page 1175 of 5415 Honorable Melissa Blazier Supervisor of Elections 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 7, 2025 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 January 7, 2025 Page 1176 of 5415 See accompanying Notes to Financial Statements. 4 Collier County, Florida Supervisor of Elections Balance Sheet – Governmental Funds September 30, 2024 General Assets Cash and cash equivalents 422,839$ Prepaid items 6,505 Total assets 429,344$ Liabilities and fund balance Liabilities: Accounts payable 39,210$ Accrued liabilities 111,612 Due to Collier County, Florida Board of County Commissioners 278,522 Total liabilities 429,344 Fund balances: Nonspendable 6,505 Unassigned (6,505) Total fund balances - Total liabilities and fund balances 429,344$ Page 1177 of 5415 See accompanying Notes to Financial Statements. 5 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2024 General Expenditures: General government: Personal services 3,160,518$ Operating 2,530,607 Capital outlay 69,609 Debt service principal 14,690 Debt service interest 544 Total expenditures 5,775,968 Excess (deficiency) of expenditures over revenues (5,775,968) Other financing sources (uses): Subscription Based Information Technology Arrangements 15,609 Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,967,100 Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners (206,741) Total other financing sources (uses)5,775,968 Net change in fund balances - Fund balances – beginning of the year - Fund balances – end of the year -$ Page 1178 of 5415 See accompanying Notes to Financial Statements. 6 Collier County, Florida Supervisor of Elections Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual General Fund Year Ended September 30, 2024 Variance With Final Budget Positive Original Final Actual (Negative) Expenditures: General government: Personal services 3,515,300$ 3,315,300$ 3,160,518$ 154,782$ Operating 2,421,800 2,585,800 2,530,607 55,193 Capital outlay 30,000 50,000 69,609 (19,609) Debt service principal - 15,000 14,690 310 Debt service interest - 1,000 544 456 Total expenditures 5,967,100 5,967,100 5,775,968 191,132 Excess (deficiency) of expenditures over revenues (5,967,100) (5,967,100) (5,775,968) 191,132 Other financing sources (uses): Subscription based information technology arrangements - - 15,609 15,609 Transfers in: Collier County, Florida Board of County Commissioners appropriations 5,967,100 5,967,100 5,967,100 - Transfers out: Distribution of excess appropriations: Collier County, Florida Board of County Commissioners - - (206,741) (206,741) Total other financing sources 5,967,100 5,967,100 5,775,968 (191,132) Net change in fund balance - - - - Fund balance – beginning of the year - - - - Fund balance – end of the year -$ -$ -$ -$ Budget Page 1179 of 5415 7 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 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 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 of the Auditor General – Local Governmental Entity Audits, which allows the Supervisor to only present fund financial statements. These financial statements present only the portion of the funds of Collier County, Florida (County) 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 inanceial activities of the Supervisor, as a constitutional officer, are Ied in the Collier County, Florida Annual Comprehensive Financial Report. There are no separate legal entities (component units) for which the SOE is considered to be financially accountable. The general operations of the Supervisor are funded by appropriations from the 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 general fund. 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 Annual Comprehensive 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. Page 1180 of 5415 8 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 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 fund: 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. 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. Page 1181 of 5415 9 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 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 an other financing use in the accompanying financial statements. Capital outlays expended in general fund operations are capitalized in 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 accumulated 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 fund 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 fund 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. Page 1182 of 5415 10 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 1. Summary of Significant Accounting Policies (continued) 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 Supervisor did not have any non-spendable fund balances as of September 30, 2024. Spendable fund balances are classified based on a hierarchy of the Supervisor’s ability to control the spending of these fund balances and are reported in the following categories: restricted, committed, assigned and unassigned. Prepaid Items Prepaid items consist of certain costs which have been paid prior to the end of the fiscal year, but represent items which are applicable to future accounting periods. Reported amounts in governmental funds are classified as nonspendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute “available spendable resources” even though they are a component of current assets. 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 fund 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. Page 1183 of 5415 11 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 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 major object expenditure categories are made at the discretion of the Supervisor. 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. 3. Cash and Cash Equivalents At September 30, 2024, the carrying value of the Supervisor’s cash and cash equivalents was as follows: Carrying Credit Type Value Rating Cash on hand 200$ N/A Demand on deposits 422,639 N/A Total cash and cash equivalents 422,839$ Custodial Credit Risk At September 30, 2024, 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 Page 1184 of 5415 12 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 3. Cash and Cash Equivalents (continued) Credit Risk The Supervisor’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 Supervisor to invest in Florida PRIME (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 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. 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 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 funds of the Supervisor. Upon acquisition, such assets are recorded as expenditures in the general fund 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 their 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. Page 1185 of 5415 13 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 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,September 30, 2023 Additions Deductions 2024 Machinery and equipment 1,053,730$ 50,000$ (4,170)$ 1,099,560$ Right-to-use leased equipment 36,733 --36,733 Right-to-use SBITA -19,609 -19,609 Total capital assets 1,090,463 69,609 (4,170) 1,155,902 Less accumulated depreciation and amortization: Machinery and equipment (905,527) (56,555) 4,170 (957,912) Right-to-use leased equipment (18,914) (7,045) -(25,959) Right-to-use SBITA -(9,818)-(9,818) Total accumulated depreciation and amortization: (924,441) (73,418) 4,170 (993,689) Total capital assets, net 166,022$ (3,809)$ -$162,213$ Leases The Supervisor of Elections 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 of Elections’ leases can be found in the County Annual Financial Report or County-wide financial statements. Leases entered into by the Supervisor of Elections are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditure, 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, 2024, the Supervisor of Elections did not enter into any new leases. During the year ended September 30, 2024, the Supervisor of Elections’ payments on leases totaled $7,234. Page 1186 of 5415 14 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 4. Capital Assets (continued) Subscription-Based Information Technology Arrangements (SBITAs) The Supervisor contracts for the right to use another party’s information technology software for various terms under certain agreements that meet the definition of a subscription-based information technology Arrangements under GASB Statement No. 96 - Subscription-Based Information Technology Arrangements (SBITAs). Detailed information concerning the Supervisor’s SBITAs can be found in the County Annual Comprehensive Financial Report. SBITAs entered into by the Supervisor of Elections are included as other financing sources and capital outlay expenditures in the statement of revenues, expenditure, and changes in fund balance in the year of inception. Payments made in accordance with the subscription 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, 2024, the Supervisor entered into SBITAs totaling $19,609 and total payments on SBITAs totaled $8,000. 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities, which are reported in the basic financial statements of Collier County, Florida: October 1,September 30, 2023 Additions Deductions 2024 Accrued Compensated Absences 241,681$ 225,926$ (218,500)$ 249,107$ Of these liabilities, approximately $219,214 is expected to be paid during the fiscal year ending September 30, 2025, 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. Page 1187 of 5415 15 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 6. Pension Plans (continued) 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 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 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 (SMSC) – Members in senior management level positions. Page 1188 of 5415 16 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 6. Pension Plans (continued) Florida Retirement System Pension Plan (continued) Plan Description (continued) 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, if vested, 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 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. 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. Page 1189 of 5415 17 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 6. Pension Plans (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 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. Page 1190 of 5415 18 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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. SOE 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. Page 1191 of 5415 19 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 6. Pension Plans (continued) FRS Investment Plan (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 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, 2021, 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 SOE. 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 Supervisor’s contributions made to the plans during the years ended September 30, 2024, 2023 and 2022, were $369,772, $290,917, and $220,264 respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s annual comprehensive financial report. Page 1192 of 5415 20 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 7. Related-Party Transactions For the year ended September 30, 2024, the Board provided funding for the Supervisor that amounted to $5,967,100. At September 30, 2024, the Supervisor had a payable due to the Board of $278,522 comprised as follows: Distribution of excess appropriations 206,741$ Distribution of interest earnings 69,706 Amounts due for various services 2,075 Total due to Board of County Commissioners 278,522$ 8.Risk Management The 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, 2024, the Supervisor was charged $382,250 by the County for participation in the risk management program. The County retains the first $600,000 per claim for workers’ compensation and has purchased excess coverage for up to statutory limit 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 768.28, 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 5 percent wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability, and crime coverage and has purchased 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. Page 1193 of 5415 21 Collier County, Florida Supervisor of Elections Notes to Financial Statements September 30, 2024 8. 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 $750,000 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 GASB Statement No. 75 Accounting and Financial Reporting for Postemployment 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. Page 1194 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 22 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 Melissa Blazier 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 Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the general fund of the Collier County, Florida, Supervisor of Elections (Supervisor) as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Supervisor’s basic financial statements, and have issued our report thereon dated January 7, 2025. Report on 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) as a basis for designing 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 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 or significant deficiencies may exist that were not identified. Page 1195 of 5415 Honorable Melissa Blazier Supervisor of Elections 23 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Supervisor’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 January 7, 2025 Page 1196 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 24 MANAGEMENT LETTER Honorable Melissa Blazier Supervisor of Elections Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Supervisor of Elections (Supervisor) as of and for the fiscal year ended September 30, 2024 and have issued our report thereon dated January 7, 2025. 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 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, 2025, 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(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. Page 1197 of 5415 Honorable Melissa Blazier Supervisor of Elections 25 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 fraud, waste, or abuse, that have occurred, or is likely to have occurred, that has 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 Supervisor, 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, 2025 Page 1198 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 26 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Melissa Blazier 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, 2024. 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 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 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. 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, 2024. 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. CliftonLarsonAllen LLP Naples, Florida January 7, 2025 Page 1199 of 5415 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1200 of 5415 Page 1201 of 5415 Collier County, Florida Tax Collector Financial Statements and Supplemental Reports Year Ended September 30, 2024 Page 1202 of 5415 Collier County, Florida Tax Collector Financial Statements and Other Reports Year Ended September 30, 2024 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 – Custodial Fund.................................................................6 Statement of Changes in Fiduciary Net Position - Custodial Fund ..............................................7 Notes to Financial Statements .......................................................................................................8 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 ..............................................25 Management Letter ........................................................................................................................27 Independent Accountants’ Report ..................................................................................................29 Page 1203 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 1 INDEPENDENT AUDITORS’ REPORT Honorable Rob Stoneburner Tax Collector Collier County, Florida Report on the Audit of the Financial Statements Opinions We have audited the accompanying 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, 2024, 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. 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, 2024, and the respective changes in financial position and the budgetary comparison for the general fund for the year ended September 30, 2024, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Tax Collector and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1, the financial statements of the Tax Collector 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 financial statements are intended to present the financial position and changes in financial position of only that portion of the general fund and the aggregate remaining fund information of Collier County, Florida that is attributable to the transactions of the Tax Collector. They do not purport to, and do not, present fairly the financial position of Collier County, Florida as of September 30, 2024, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Page 1204 of 5415 Honorable Rob Stoneburner Tax Collector 2 Responsibilities of Management 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; and for 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’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 Tax Collector’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Page 1205 of 5415 Honorable Rob Stoneburner Tax Collector 3 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 opinions 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 2, 2025, on our consideration of the Collier County, Florida, 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 2, 2025 Type text here Page 1206 of 5415 Collier County, Florida Tax Collector Balance Sheet – General Fund September 30, 2024 See accompanying Notes to Financial Statements. 3 Assets Cash and cash equivalents 19,537,925$ Accounts receivable 771 Prepaid rent 17,784 Prepaid expenditures 212,750 Security deposit 14,868 Total assets 19,784,098$ Liabilities and fund balance Liabilities: Accounts payable 10,930$ Due to Collier County, Florida Board of County Commissioners 16,809,495 Due to other governmental agencies 2,548,685 Other current liabilities 414,988 Total liabilities 19,784,098 Fund balance: Nonspendable 245,402 Unassigned (245,402) Total fund balance - Total liabilities and fund balance 19,784,098$ Page 1207 of 5415 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance General Fund Year Ended September 30, 2024 See accompanying Notes to Financial Statements. 4 Revenues: Commissions and fees 34,091,079$ Miscellaneous 1,092,452 Total revenues 35,183,531 Expenditures: General government: Personal services 15,620,881 Operating 1,772,235 Capital outlay 206,609 Debt service - principal 580,611 Debt service - interest 129,367 Total expenditures 18,309,703 Excess of revenues over expenditures 16,873,828 Other financing sources (uses): Leases 8,537 Subscription-based information technology arrangements 44,017 Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (14,479,189) Distribution of excess commissions and fees to other governmental agencies (2,447,193) Total other financing sources (uses)(16,873,828) Net change in fund balance - Fund balance, beginning of year - Fund balance, end of year -$ Page 1208 of 5415 Collier County, Florida Tax Collector Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual General Fund Year Ended September 30, 2024 See accompanying Notes to Financial Statements. 5 Variance With Final Budget Positive Original Final Actual (Negative) Revenues: Commissions and fees 32,375,000$ 32,375,000$ 34,091,079$ 1,716,079$ Miscellaneous 397,600 397,600 1,092,452 694,852 Total revenues 32,772,600 32,772,600 35,183,531 2,410,931 Expenditures: General government: Personal services 17,074,114 17,074,114 15,620,881 1,453,233 Operating 3,385,924 3,385,924 1,772,235 1,613,689 Capital outlay 676,865 856,865 206,609 650,256 Debt service - principal - - 580,611 (580,611) Debt service - interest - - 129,367 (129,367) Total expenditures 21,136,903 21,316,903 18,309,703 3,007,200 Excess of revenues over expenditures 11,635,697 11,455,697 16,873,828 5,418,131 Other financing sources (uses): Leases - - 8,537 8,537 Subscription-based information technology arrangements - - 44,017 44,017 Distribution of excess commissions and fees to Collier County, Florida Board of County Commissioners (9,953,424) (9,799,448) (14,479,189) (4,679,741) Distribution of excess commissions and fees to other governmental agencies (1,682,273) (1,656,249) (2,447,193) (790,944) Total other financing sources (uses) (11,635,697) (11,455,697) (16,873,828) (5,418,131) Net change in fund balance - - - - Fund balance, beginning of year - - - - Fund balance, end of year -$ -$ -$ -$ Budget Page 1209 of 5415 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund September 30, 2024 6 Assets Cash and cash equivalents 5,274,667$ Accounts receivable 9,822 Due from other governmental agencies 87,922 Total assets 5,372,411 Liabilities Due to other governmental agencies 5,002,641 Due to individuals and businesses 369,770 Total liabilities 5,372,411 Fiduciary Net Position –$ Page 1210 of 5415 Collier County, Florida Tax Collector Statement of Fiduciary Net Position Custodial Fund Year Ended September 30, 2024 See accompanying Notes to Financial Statements. 7 Additions Tax Collections for Other Governments 952,171,007$ License and Fee Collections for Other Governments 46,469,921 Miscellaneous 1,104,018 Total Additions 999,744,946 Deductions Payments of Tax to Other Governments 952,171,007 Payments of Licenses and Fees to Other Governments 47,573,939 Total Deductions 999,744,946 Change in Fiduciary Net Position – Fiduciary Net Position - Beginning of Year – Fiduciary Net Position - End of Year –$ Page 1211 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 8 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 (the County) that are attributable to the Tax Collector. They are not intended to present fairly the financial position and results of operations of the County 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 County’s Annual Comprehensive Financial Report. These fund financial statements report detailed information about the Tax Collector. Page 1212 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 9 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 the County rather than in the governmental funds of the Tax Collector. Page 1213 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 10 1. Summary of Significant Accounting Policies (continued) Fiduciary Funds Custodial 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. Custodial funds use the economic resources measurement focus and report all assets and liabilities related to the funds held in custody. Custodial 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 employees of the Tax Collector are allowed to accumulate a limited number of PTO hours (between 136 and 240 annually), depending on tenure. Upon separation of service, all employees receive 100% of accumulated PTO hours at their current rate of pay. PTO and sick leave payments are included in the 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 the County. Page 1214 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 11 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. Tax 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. Page 1215 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 12 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, 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 In accordance with Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, fund balances are classified as nonspendable or spendable. Spendable fund balances are further classified in a hierarchy based on the extent to which there are external and internal constraints on the spending of these fund balances. These classifications are described as follows: The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in a spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash. As of September 30, 2024, the Tax Collector’s General Fund reported a nonspendable fund balance of $245,402 for prepaid items and security deposits. Spendable fund balances are classified as follows: Restricted fund balances are constrained for a specific purpose by creditors, grantors, contributors, laws or regulations, or through constitutional provisions or enabling legislation. Committed fund balances are constrained for a specific purpose imposed by a formal action of the Tax Collector’s highest level of decision authority. Assigned fund balances are intended to be used for specific purposes, but which are neither restricted nor committed. Unassigned fund balances represent the residual fund balances that do not meet the other fund balance classification requirements. As of September 30, 2024, the Tax Collector’s General Fund reported a negative unassigned fund balance of $245,402 since all excess fees are returned to the County and the General Fund reports a nonspendable fund balance for its prepaid items. Page 1216 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 13 2. Budgetary Process Florida Statutes govern the preparation, adoption, and administration of the Tax Collector’s annual budget. The Tax Collector submits a budget for the general fund to the Florida Department of Revenue for approval. A copy of the approved budget is provided to the Board. Any subsequent amendments to the Tax Collector’s total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with accounting principles generally accepted in the United States of America. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year- end. Budget control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized. 3. Cash At September 30, 2024, the carrying value of the Tax Collector’s cash was as follows: 2024 Carrying Value Cash on hand 36,758$ Demand deposits 24,775,834 Total cash and cash equivalents 24,812,592$ Type Such amounts are reported as $19,537,925 and $5,274,667 for 2024 in the general and fiduciary funds, respectively. Custodial Credit Risk At September 30, 2024, 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. Page 1217 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 14 3. Cash (continued) 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. 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 the County 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 the County. 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 the County. Page 1218 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 15 4. Capital Assets (continued) The following is a summary of changes in capital assets for the year ended September 30, 2024: October 1, 2023 Additions Deletions/ Reclassifications September 30, 2024 Capital assets not depreciated: Construction in progress 13,002$ 8,121$ (21,123)$ -$ Total assets not depreciated 13,002 8,121 (21,123) - Capital assets - depreciable: Infrastructure 6,117 - - 6,117 Improvements other than buildings 26,760 21,380 (21,380) 26,760 Machinery and equipment 1,387,564 124,553 (57,363) 1,454,754 Right-to-use leased building 1,894,005 8,537 - 1,902,542 Right-to-use leased equipment 35,205 - - 35,205 Right-to-use SBITA equipment 3,296,811 44,017 - 3,340,828 Total depreciable capital assets 6,646,462 198,487 (78,743) 6,766,206 Accumulated depreciation: Infrastructure (6,117) - (6,117) Improvements other than buildings (26,760) - - (26,760) Machinery and equipment (1,041,788) (75,292) 78,486 (1,038,594) Total accumulated depreciation (1,074,665) (75,292) 78,486 (1,071,471) Accumulated amortization: Right-to-use leased building (374,089) (93,751) - (467,840) Right-to-use leased equipment (21,786) (7,056) - (28,842) Right-to-use SBITA equipment (551,818) (557,877) - (1,109,695) Total accumulated amortization (947,693) (658,684) - (1,606,377) Total depreciable capital assets, net 4,624,104 (535,489) (257) 4,088,358 Total capital assets, net 4,637,106$ (527,368)$ (21,380)$ 4,088,358$ During the fiscal year ended September 30, 2024, improvements and equipment of $99,866 were transferred to the County. Page 1219 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 16 5. Long-Term Liabilities The following is a summary of changes in long-term liabilities which are reported in the basic financial statements of the County: October 1, 2023 Increase Decrease September 30, 2024 Accrued compensated absences 418,047$ 871,817$ (909,832)$ 380,032$ Of these liabilities, approximately $376,000 is expected to be paid during the fiscal year ending September 30, 2025, 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. 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. Page 1220 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 17 6. Pension Plans (continued) Background (continued) Essentially all regular employees of the Tax Collector are required to enroll as members of the State-administered FRS, except for some re-employed retirees. Provisions relating to the FRS are established by Chapters 121 and 123, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. The annual comprehensive 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 (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. Special Risk Administrative Support Class – Members who provide administrative support for a special risk employer. Page 1221 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 18 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, if vested, 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 55 or at any age after 25 years of service. Special risk 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, and death benefits to eligible participants. Annual cost-of-living adjustments are limited to members initially employed before July 1, 2011. 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 8 years after electing to participate, except that certain instructional personnel may participate for up to 10 years. 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. Page 1222 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 19 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% 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. 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. Page 1223 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 20 6. Pension Plans (continued) Retiree Health Insurance Subsidy Program (continued) Benefits Provided For the fiscal year ended June 30, 2024, eligible retirees and beneficiaries received a monthly HIS payment of $7.50 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $45 and a maximum HIS payment of $225 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 Annual Comprehensive 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. 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 0.06% of payroll and by forfeited benefits of plan members. Page 1224 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 21 6. Pension Plans (continued) FRS Investment Plan (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 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, 2024, 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. 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 Tax Collector’s contributions made to the plans during the years ended September 30, 2024, 2023, and 2022 were $1,672,154, $1,422,304, and $1,156,878, respectively, equal to the actuarially determined contribution requirements for each year. Additional information about pension plans can be found in the County’s financial statements. Page 1225 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 22 7. Other Postemployment Benefits (OPEB) In accordance with Section 112.0801, Florida Statutes, the Tax Collector participates with the 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. 8. Related Party Transactions During the fiscal year ended September 30, 2024, the Board paid commissions and fees to the Tax Collector that amounted to $25,635,808. At September 30, 2024, the Tax Collector had a payable due to the Board of $16,809,495 comprised as follows: 2024 Distribution of unused commissions and fees 14,479,189$ Tax and fee collections due to the Board 2,384,583 Payable 3,409 Negative Distribution Receivable (57,686) Total 16,809,495$ 9. Risk Management The 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, 2024, the Tax Collector was charged $3,196,326 by the County for participation in the risk management program. Page 1226 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 23 9. Risk Management (continued) The County retains the first $600,000 per claim for workers’ compensation and has purchased excess coverage for up to statutory limit for each injury or illness. The County also provides coverage for up to $300,000 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 5 percent wind deductible and a $100,000 deductible for all other perils. The County retains the first $300,000 per claim for general liability, public official errors and omissions, automobile liability and crime coverage and has purchased 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 $750,000 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 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 Tax Collector’s leases can be found in the County’s financial statements. Leases entered into by the 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. Page 1227 of 5415 Collier County, Florida Tax Collector Notes to Financial Statements September 30, 2024 24 10. Commitments and Contingencies (continued) Leases (continued) During the year ended September 30, 2024, the Tax Collector did not enter into any new leases; however, the right-to-use leased building asset value was increased by $8,537 in response to a correction of lease terms for an existing agreement. During the year ended September 30, 2024, the Tax Collector’s payments on leases totaled $110,580. Subscription-Based Information Technology Arrangements The Tax Collector utilizes licensing agreements of various terms for the right to use another party’s computer software that meet the definition of a subscription-based information technology arrangement (SBITA) under GASB Statement No. 96, Subscription-Based Information Technology Arrangements. Detailed information about the Tax Collector’s SBITAs can be found in the County’s financial statements. SBITAs entered into by the 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 subscription 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, 2024, the Tax Collector’s new SBITAs totaled $44,017 and total payments on SBITAs totaled $599,398. 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. Page 1228 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 25 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 Collier County, Florida, Tax Collector (Tax Collector) as of and for the year ended September 30, 2024, 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 2, 2025. Report on 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) 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 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 or significant deficiencies may exist that were not identified. Page 1229 of 5415 Honorable Rob Stoneburner Tax Collector 26 Report on 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 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 Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Naples, Florida January 2, 2025 Page 1230 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 27 MANAGEMENT LETTER Honorable Rob Stoneburner Tax Collector Collier County, Florida Report on the Financial Statements We have audited the financial statements of the Collier County, Florida, Tax Collector (Tax Collector) as of and for the fiscal year ended September 30, 2024, and have issued our report thereon dated January 2, 2025. 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 2, 2025 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 such findings reported in the prior 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. Page 1231 of 5415 Honorable Rob Stoneburner Tax Collector 28 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 2, 2025 Page 1232 of 5415 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. CliftonLarsonAllen LLP CLAconnect.com 29 INDEPENDENT ACCOUNTANTS’ REPORT Honorable Rob Stoneburner Tax Collector Collier County, Florida We have examined the Collier County, Florida, Tax Collector (Tax Collector)’s compliance with Section 218.415, Florida Statutes, regarding the investment of public funds, during the year ended September 30, 2024. 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. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the Tax Collector’s compliance with specified requirements. In our opinion, the Tax Collector’s complied, in all material respects, with Section 218.415, Florida Statutes, regarding the investment of public funds; during the year ended September 30, 2024. 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. CliftonLarsonAllen LLP Naples, Florida January 2, 2025 Page 1233 of 5415 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1234 of 5415 Page 1235 of 5415 Page 1236 of 5415 Prepared under the supervision of: Crystal K. Kinzel Clerk of the Circuit Court and County Comptroller Prepared and edited by: Derek M. Johnssen, CPA Director of Finance CollierClerk.com Page 1237 of 5415