2022 Comprehensive Annual Financial Report for Sarasota Coun

Governmental activities. Governmental activities resulted in a $129.3 million increase in net position because of current fiscal year activities.  Revenues related to governmental activities increased by $62.5 million, or 9.6 percent. The change in revenue is largely due to the following: o Property tax revenues increased by $18.2 million, or 7.2 percent reflective of the increases in taxable assessed property values. o Local government sales tax revenue increased by $16.1 million, or 18.5 percent, due to continued economic recovery. o Operating grants and contributions revenue increased by $23.1 million, or 46.3 percent due to the receipt of grant revenue related to the American Rescue Plan federal grant. o Capital grants and contributions revenue decreased by $7.4 million or 15.6 percent due to a nonrecurring one-time capital contribution received in the prior year. o Investment earnings revenue decreased by $41.2 million due to market changes in the current year compared to the prior year.  Expenses in governmental activities increased approximately $9.3 million, or 1.7 percent. Key factors that contributed to the increase in expenses are identified below. o General government expenses increased by $23.5 million, or 22.7 percent largely due to an increase in pension expense and an increase in lease expense. o Public Safety expenses decreased by $11.7 million, or 4.2 percent mainly due to one-time expenditures that incurred in the prior year due to the global health crisis - COVID-19. o Transportation expenses decreased by $12.9 million, or 21.3 percent largely due to a reduction in project spending. Business-type activities. Business-type activities were responsible for $11.1 million of the total growth in Sarasota County’s net position for the current fiscal year.  Revenues for business-type activities increased by $12 thousand, or less than 1 percent. Key factors that contributed to the increase in revenues are identified below. o Charges for services increased by $15.3 million, or 7.5 percent largely due to overall growth in the County impacting water and wastewater charges. o Capital Grants and Contributions revenue increased by $3.7 million, or 9.6 percent due to an increase of water and wastewater impact fees collected. o Investment earnings revenue decreased by $20.9 million due to market changes in current year compared to the prior year.  Expenses for business-type activities increased by $48.3 million, or 23.0 percent. Key factors that contributed to the increase in expenses are identified below. o The Utility System (water and wastewater utilities) expenses increased by $10.4 million, or 9.0 percent due to water purchases and treatment costs. o The Solid Waste System expenses increased by $32.8 million, or 67.9 percent due to landfill closure and post closure costs increasing. 36

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