Lee County, Florida Fiscal Year Ended September 30, 2019 Lee County, Florida
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Comprehensive Annual Financial Report Lee County, Florida Fiscal Year Ended September 30, 2019 Lee County, Florida Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 ~ LEE COUNTY SOUTHWEST FLORIDA Prepared by: General Accounting Office, Finance & Records Department Clerk to Board of County Commissioners Linda Doggett Lee County, Florida PRINCIPAL OFFICIALS As of September 30, 2019 Elected Officials Board of County Commissioners, Port Commissioners: Commissioner, District 1 …………………………………… John Manning Commissioner, District 2 …………………………………… Cecil Pendergrass Commissioner, District 3 …………………………………… Ray Sandelli Commissioner, District 4 …………………………………… Brian Hamman * ** Commissioner, District 5 …………………………………… Frank Mann Appointed Officials County Manager ………………………………………………… Roger Desjarlais County Attorney ………………………………………………… Richard Wm. Wesch Executive Director, Port Authority ………………………………Jeff A. Mulder Hearing Examiner(s) ………………………………………………Donna Marie Collins Amanda L. Rivera * Chairman for Board of County Commissioners ** Chairman for Board of Port Commissioners Photographs provided by Ed Clement Photographic Services, Inc., Lee County Public Resources, Lee County Visitor & Convention Bureau, Lee County Port Authority, Lee County Water & Wastewater System, Lee County Solid Waste System, Lee County Transportation Facilities, and Lee County Transit. ii Lee County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2019 TABLE OF CONTENTS Introductory Section PAGE Letter of Transmittal …………………………………………………………………………………………… 2 Organizational Charts ………………………………………………………………………………………… 9 Government Finance Officers Association Certificate of Achievement ………………………………… 11 Financial Section Independent Auditors' Report ……………………………………………………………………………… 14 Management's Discussion and Analysis (unaudited) ……………………………………………………… 17 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ……………………………………………………………………….……………… 30 Statement of Activities ……………………………………………………………...…………………………… 32 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet- Governmental Funds……………………………………………………………..………… 33 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position……… 34 Statement of Revenues, Expenditures, and Changes in Fund Balances- Governmental Funds………………………………………………………………… 35 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.………..…………..…… 36 Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget (Non-GAAP Budgetary Basis) and Actual- General Fund…………….…………………… 37 Proprietary Fund Financial Statements Statement of Net Position- Proprietary Funds …………………………………………………………… 38 Statement of Revenues, Expenses, and Changes in Net Position- Proprietary Funds …….………… 41 Statement of Cash Flows- Proprietary Funds ………………………………………………….………… 43 Fiduciary Fund Statements Statement of Fiduciary Net Position- Agency Funds ……………………………………….…………… 45 Notes to the Financial Statements ………………………………………………………….……………………..… 47 Required Supplementary Information Other Postemployment Benefits Plans (unaudited) - Schedule of Total OPEB liability - Group Health Program for Lee County Plan and Lee County Sheriff Health Care Plan…………………………………… 102 Florida Retirement System Pension Plan - Schedule of the County's Proportionate Share of the Net Pension Liability and Schedule of the County Contributions…………………………………………… 104 Retiree Health Insurance Subsidy Program - Schedule of the County's Proportionate Share of the Net Pension Liability and Schedule of the County Contributions…………………………………………… 105 iii Lee County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2019 TABLE OF CONTENTS Supplemental Financial Information PAGE General Fund Combining Schedules Balance Sheet …………………………………………...………………………..…………………………………… 110 Schedule of Revenues, Expenditures, and Changes in Fund Balances …………………….…………………… 112 Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget (Non-GAAP Budgetary Basis) and Actual……….……………………………….…………………… 114 Non-Major Governmental Funds Combining Statements and Schedules Non-Major Governmental Fund Descriptions ……………………………………………...……………………… 118 Balance Sheet …………………………………………………………….…………………………………………… 121 Statement of Revenues, Expenditures, and Changes in Fund Balances ……………...………………………… 131 Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget (Non-GAAP Budgetary Basis) and Actual- Special Revenue Funds ……………………………… 141 Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget (Non-GAAP Budgetary Basis) and Actual- Debt Service Funds ……………………………..…… 148 Schedule of Revenues, Expenditures, and Changes in Fund Balances- Budget (Non-GAAP Budgetary Basis) and Actual- Capital Projects Funds ………………………..……… 151 Enterprise Funds Combining Schedule Enterprise Fund Descriptions …………………...……………………………………………………………….…… 158 Schedule of Revenues, Expenses, and Changes in Net Position- Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP………………..………… 159 Internal Service Funds Combining Statements and Schedule Internal Service Fund Descriptions …………………………………………………………………….…………… 162 Statement of Net Position …………………………………………………………………...………………………… 163 Statement of Revenues, Expenses, and Changes in Net Position …………….………..………………………… 165 Statement of Cash Flows ……………………………………………………….………………………..…………… 166 Schedule of Revenues, Expenses, and Changes in Net Position- Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP……………...………… 168 Agency Funds Combining Statements Agency Fund Descriptions …………………………………………………………………...……………………… 172 Statement of Fiduciary Net Position- Agency Funds………………………..……………………………………… 173 Statement of Changes in Assets and Liabilities- Agency Funds………………...………………………………… 176 iv Lee County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2019 TABLE OF CONTENTS Statistical Section (unaudited) PAGE Statistical Section Descriptions ……………………………………………………………………………………… 180 Schedule 1- Net Position………………..……………………………………………………………………………… 181 Schedule 2- Changes in Net Position………………………………………………………………………………… 182 Schedule 3- Fund Balances of Governmental Funds……………………………………………………………… 184 Schedule 4- Changes in Fund Balances of Governmental Funds………………………………………………… 185 Schedule 5- Assessed Value and Estimated Actual Value of Taxable Property………………………………… 186 Schedule 6- Property Tax Rates- Direct and Overlapping Governments………………………………………… 187 Schedule 7- Principal Property Taxpayers…………………………………………………………………………… 188 Schedule 8- Property Tax Levies and Collections…………………………………………………………………… 189 Schedule 9- Ratio of Outstanding Debt by Type…………………………………………………………………… 190 Schedule 10- Pledged Revenue Bond Coverage…………………………………………………………………… 191 Schedule 11- Demographic and Economic Statistics……………………………………………………………… 193 Schedule 12- Principal Employers…………………………………………………………………………………… 194 Schedule 13- Government Employees by Function/Program…………………………………………………… 195 Schedule 14- Operating Indicators by Function/Program………………………………………………………… 196 Schedule 15- Capital Asset Statistics by Function…………………………………………………………………… 197 Other Supplemental Information (unaudited) Tourist Development Tax Revenue Bonds- Historical Tourist Development Tax Revenues, Gross Revenues and State Funds and Pro Forma Debt Service Coverage …………………….…………… 200 Tourist Development Tax Revenue Bonds- Statement of Historical Collections and Distributions of the General Sales and Use Tax……………………………………………………………….…………………… 201 Non-Ad Valorem Revenue Bonds- Historical Major Sources of Non-Ad Valorem Revenues……….………… 202 Non-Ad Valorem Revenue Bonds- Statement of Revenues, Expenditures, and Changes in Fund Balances- Total Governmental Funds……………………………..……………..……………………………… 203 Lee County Water and Wastewater Systems- Monthly Water Rates …………………………………………… 204 Lee County Water and Wastewater Systems- Water Restriction Surcharge Adjustment ……………………… 204 Lee County Water and Wastewater Systems- Monthly Wastewater Rates ……………………………………… 205 Lee County Water and Wastewater Systems- Connection Fees ……………………………………………...…… 205 Lee County Water and Wastewater Systems- Water Meter Installation and Service Connection Fees……… 205 Lee County Water and Wastewater Systems- Historical Revenues, Expenses and Debt Service Coverage ……………………………………………………………………………...……...…… 206 Lee County Water and Wastewater Systems- Customer Statistics……………………………………………… 208 Lee County Water and Wastewater Systems- County System Top Ten Retail Utility Customers…………… 209 Lee County Solid Waste System- System Historical Operating Results and Indenture Rate Covenant Compliance…………………………………………………………………………………………… 210 Lee County Solid Waste System-Summary of Historical Charges …………………………………………..…… 211 v Lee County, Florida COMPREHENSIVE ANNUAL FINANCIAL REPORT September 30, 2019 TABLE OF CONTENTS Other Supplemental Information (continued) (unaudited) PAGE Lee County Solid Waste System- Summary of Historical Inbound Waste Deliveries (Tons) by Type of Waste…………………………………………………………………………………..….……………… 212 Lee County Solid Waste System- Summary of Historical Waste-to-Energy (WTE) Processing Satistics……… 213 Lee County Transportation Facilities- Toll Rates ………………………………………………………………..… 214 Lee County Transportation Facilities- Variable Pricing Program ………………………………………………… 216 Lee County Transportation Facilities- Traffic, Revenues and Expenses