2021 Sarasota County, Florida • Fiscal Year Ended September 30, 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT
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ANNUALCOMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2021 SARASOTA COUNTY SARASOTA, FLORIDA BOARD OF COUNTY COMMISSIONERS ALAN MAIO CHRISTIAN ZIEGLER MICHAEL MORAN NANCY DETERT RON CUTSINGER COUNTY ADMINISTRATOR JONATHAN R. LEWIS CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER KAREN E. RUSHING DIRECTOR OF FINANCE NICOLE E. JOVANOVSKI, CPA Prepared by the Office of the Clerk of Circuit Court and County Comptroller 1
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SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS INTRODUCTORY SECTION: Page Letter of Transmittal .............................................................................................................................................................. 11 Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year 2020 ....................................................... 18 Sarasota County Government Organizational Chart ............................................................................................................ 21 FINANCIAL SECTION: Independent Auditors’ Report ............................................................................................................................................... 25 Management’s Discussion and Analysis............................................................................................................................... 29 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ........................................................................................................................................ 44 Statement of Activities.............................................................................................................................................. 46 Fund Financial Statements: Governmental Funds: Balance Sheet – Governmental Funds.............................................................................................................. 48 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................... 51 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds.......................................................................................................... 52 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities............................................................................................. 55 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual - General Fund ............................................................................................................................................... 56 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual - Emergency Services Special Revenue Fund............................................................................................... 58 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual - Capital Revenue Programs Special Revenue Fund .................................................................................... 59 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual - Federal, State & Local Grants Special Revenue Fund ................................................................................ 61 Proprietary Funds: Statement of Net Position – Proprietary Funds ................................................................................................. 62 Reconciliation of the Proprietary Funds Statement of Net Position to the Statement of Net Position .................................................................................................................... 67 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ......................... 68 Reconciliation of the Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position to the Statement of Activities ...................................................................................................... 71 Statement of Cash Flows – Proprietary Funds.................................................................................................. 72 Fiduciary Funds: Statement of Fiduciary Net Position – Fiduciary Funds .................................................................................... 76 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ................................................................. 77 Notes to the Financial Statements: 1) Summary of Significant Accounting Policies ..................................................................................................... 79 2) Stewardship, Compliance, and Accountability .................................................................................................. 96 3) Cash, Investments and Securities Lending ....................................................................................................... 97 4) Receivables ..................................................................................................................................................... 105 5) Interfund Receivables, Payables, and Transfers............................................................................................. 105 6) Capital Assets.................................................................................................................................................. 107 3
SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS 7) Long-Term Debt............................................................................................................................................... 111 8) Lease Obligations ............................................................................................................................................ 131 9) Landfill Closure and Postclosure Care Cost.................................................................................................... 131 10) Risk Management............................................................................................................................................ 131 11) Employee Retirement Plans ............................................................................................................................ 132 12) Deferred Compensation Plan .......................................................................................................................... 143 13) Post-Employment Benefits (Other Than Pensions)......................................................................................... 143 14) Contingencies .................................................................................................................................................. 148 15) Subsequent Events ......................................................................................................................................... 149 16) Deficit Fund Balances...................................................................................................................................... 149 17) Tax Abatement ................................................................................................................................................ 150 18) Change in Accounting Principal ...................................................................................................................... 150 Required Supplementary Information: Schedule of Changes in the County’s Net OPEB Liability and Related Ratios ..................................................... 152 Schedule of Contributions for the County’s OPEB Trust Fund.............................................................................. 153 Schedule of Changes in the Sheriff’s Net OPEB Liability and Related Ratios...................................................... 155 Schedule of Proportionate Share of Net Pension Liability ..................................................................................... 156 Schedule of Contributions ...................................................................................................................................... 162 Governmental Funds Financial Statements: Combining and Individual Fund Statements and Other Supplemental Information: Combining Balance Sheet – Nonmajor Governmental Funds ............................................................................... 174 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds ...................................................................................................................... 176 Special Revenue Funds: Subcombining Balance Sheet – Nonmajor Special Revenue Funds........................................................ 178 Subcombining Statement of Revenues, Expenditures and Changes in Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds: Balances – Nonmajor Special Revenue Funds ..................................................................................... 184 Transportation Special Revenue Fund ............................................................................................... 190 Building and Zoning Special Revenue Fund ...................................................................................... 191 Tourist Development Special Revenue Fund..................................................................................... 192 Franchise Utilities Special Revenue Fund.......................................................................................... 193 Mosquito Control Special Revenue Fund........................................................................................... 194 Grants in Aid Special Revenue Fund ................................................................................................. 195 Environmental Resources Special Revenue Fund............................................................................. 196 Gifts, Donations and Recreation Special Revenue Fund................................................................... 197 Improvement Districts Special Revenue Fund ................................................................................... 198 Court Improvements Special Revenue Fund ..................................................................................... 199 Street Lighting Districts Special Revenue Fund ................................................................................. 200 Arts in Public Places Special Revenue Fund ..................................................................................... 201 Economic Development Special Revenue Fund ................................................................................ 202 Moving Violation Surcharge Special Revenue Fund .......................................................................... 203 Law Enforcement Special Revenue Fund .......................................................................................... 204 Sheriff’s Special Revenue Fund ........................................................................................................ 205 Clerk’s Special Revenue Fund........................................................................................................... 207 4
SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Debt Service Funds: Subcombining Balance Sheet – Nonmajor Debt Service Funds .............................................................. 208 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Debt Service Funds: Balances – Nonmajor Debt Service Funds............................................................................................ 212 Bank Term Loans Debt Service Fund ................................................................................................ 216 Commercial Paper Debt Service Fund ............................................................................................... 217 Second Guaranteed Entitlement Series 2013 Fund........................................................................... 218 Infrastructure Sales Surtax Series 2014A, Series 2015, and Series 2018 Fund ............................... 219 Capital Improvement Series 2017 Fund............................................................................................. 220 Capital Improvement Series 2018A Fund .......................................................................................... 221 Capital Improvement Series 2018B Fund .......................................................................................... 222 General Obligation Series 2019, and Series 2020 Fund.................................................................... 223 Capital Improvement Series 2019A Fund .......................................................................................... 224 Capital Improvement Series 2019B Fund .......................................................................................... 225 Capital Improvement Series 2019C Fund .......................................................................................... 226 Capital Improvement Series 2020 Fund............................................................................................. 227 Capital Projects Funds: Subcombining Balance Sheet – Nonmajor Capital Projects Funds.......................................................... 228 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Capital Projects Funds ....................................................................................... 230 Permanent Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Library Endowments ......................................................................................................... 232 Internal Service Funds: Combining Statement of Net Position – Internal Service Funds............................................................................ 234 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds ............................................................................................................. 236 Combining Statement of Cash Flows – Internal Service Funds ............................................................................ 238 Fiduciary Funds: Combining Statement of Fiduciary Net Position – Custodial Funds ...................................................................... 244 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds................................................... 246 STATISTICAL SECTION: Financial Trends: Net Position by Component .......................................................................................................................................... 252 Changes in Net Position ............................................................................................................................................... 254 Fund Balances, Governmental Funds .......................................................................................................................... 258 Changes in Fund Balances, Governmental Funds....................................................................................................... 260 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property .............................................................................. 263 Direct and Overlapping Property Tax Rates................................................................................................................. 264 Principal Property Taxpayers ....................................................................................................................................... 266 Property Tax Levies and Collections ............................................................................................................................ 267 Property Value, Construction, and Bank Deposits ....................................................................................................... 268 Special Assessment Billings and Collections ............................................................................................................... 269 5
SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Coverage of Guaranteed Entitlement for All Counties by Revenue Sharing Trust Fund Receipts for All Counties ......................................................................................................................................... 270 Coverage of Guaranteed Entitlement for Sarasota County by Revenue Sharing Trust Fund Receipts for Sarasota County.................................................................................................................................. 271 State of Florida and Sarasota County Historical Sales Tax Collections....................................................................... 272 State of Florida and Sarasota County Historical Local Government Half-Cent Sales Tax .......................................... 273 Sarasota County and Municipalities Percentage Distributions of Statewide Half-Cent Sales Tax Revenues ............. 275 Debt Capacity: Ratios of Outstanding Debt by Type............................................................................................................................. 276 Direct and Overlapping Governmental Activities Debt Coverage of Maximum Annual Debt Service Requirement by Local Government ................................................................................................. 278 Legal Debt Margin Information ..................................................................................................................................... 279 Pledged-Revenue Coverage ........................................................................................................................................ 280 Half-Cent Sales Tax Revenues ............................................................................................................................... 287 Demographic and Economic Information: Demographic and Economic Statistics ......................................................................................................................... 288 Principal Employers ...................................................................................................................................................... 289 Top Ten Manufacturers ................................................................................................................................................ 290 Miscellaneous Statistics ............................................................................................................................................... 291 Operating Information: Full-Time Equivalent County Government Employees by Function/Program .............................................................. 293 Operating Indicators by Function/Program................................................................................................................... 294 Capital Assets Statistics by Function/Program............................................................................................................. 296 OTHER SUPPLEMENTAL INFORMATION: Summary Schedule of Revenues, Expenditures and Changes in Fund Balances – General Fund................................... 300 Assessed Value of Taxable Property.................................................................................................................................. 301 Pro Forma Debt Service Coverage – Limited Ad Valorem Tax Bonds, Series 2005, Series 2010 and Series 2014 ......... 302 Commercial Paper - Specific Borrowings ........................................................................................................................... 303 Communication Services Tax Revenue Bonds Series 2010, and Communication Services Tax Revenue Refunding Note, Series 2014 and 2015 Continuing Disclosure..................................................................................................... 304 Infrastructure Sales Surtax Revenue Bonds, Series 2014, 2015 and 2018 Continuing Disclosure and Infrastructure Sales Surtax Revenue Note, 2020......................................................................................................... 305 Pro Forma Debt Service Coverage - Second Guaranteed Entitlement Revenue Bonds Series 2013 ............................... 307 Utility Bond Issue Continuing Disclosure ............................................................................................................................ 308 Schedule of Changes in the County’s Net OPEBLiability and Related Ratios .................................................................. 316 Schedule of Contributions for the County’s OPEB Trust Fund........................................................................................... 317 Schedule of Changes in the Sheriff’s Net OPEB Liability and Related Ratios ................................................................... 318 General Obligation Bonds – Description............................................................................................................................. 319 General Government – Revenue Bonds – Description: Revenue Bond Issues................................................................................................................................................... 320 Enterprise Funds – Revenue Bonds – Description: Utility System Revenue Bonds ..................................................................................................................................... 324 General Obligation Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – General Obligation Bonds ............................................................................................... 326 General Obligation Bonds, Series 2019 ....................................................................................................................... 327 General Obligation Bonds, Series 2020 ....................................................................................................................... 328 General Government – Revenue Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – Revenue Bonds ............................................................................................................... 329 6
SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Second Guaranteed Entitlement Revenue Bonds, Series 2013 .................................................................................. 330 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 ......................................................................... 331 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 ......................................................................... 332 Capital Improvement Revenue Bonds, Series 2017 .................................................................................................... 333 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2018 ......................................................................... 334 Capital Improvement Revenue Refunding Bonds, Series 2018A ................................................................................ 335 Capital Improvement Revenue Refunding Bonds, Series 2018B ................................................................................ 336 Capital Improvement Revenue Bonds, Series 2019A .................................................................................................. 337 Capital Improvement Revenue Refunding Bonds, Series 2019B ................................................................................ 338 Capital Improvement Revenue Refunding Bonds, Series 2019C ................................................................................ 339 Capital Improvement Revenue Bonds, Series 2020 .................................................................................................... 340 Enterprise Funds – Revenue Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – Utility System Revenue Bonds ........................................................................................ 341 Utility System Revenue Refunding Bonds, Series 2011B ............................................................................................ 342 Utility System Revenue Bonds, Series 2013 ................................................................................................................ 343 Utility System Revenue Bonds, Series 2016A ............................................................................................................. 344 Utility System Revenue Refunding Bonds, Series 2016B ............................................................................................ 345 Utility System Revenue Refunding Bonds, Series 2019A ............................................................................................ 346 Utility System Revenue Refunding Bonds, Series 2020A ............................................................................................ 347 Utility System Revenue Refunding Bonds, Series 2020B ............................................................................................ 349 General Government – Bank Term Loans – Description: Bank Term Loans ......................................................................................................................................................... 350 Enterprise Funds – Bank Term Loans – Description: Utility System and Solid Waste System Notes ............................................................................................................. 352 General Government – Bank Term Loans – Debt Service Requirements to Maturity: Summary of Debt Service – Bank Term Loans ............................................................................................................ 354 Bank Term Revenue Note, Series 2013A .................................................................................................................... 355 Bank Term Revenue Note, Series 2014A .................................................................................................................... 356 Communication Services Tax Revenue Refunding Note, Series 2014 ........................................................................ 357 Five-Cent Local Option Fuel Tax Revenue Refunding Note, Series 2014................................................................... 358 Bank Term Revenue Note, Series 2014B .................................................................................................................... 359 Limited Ad Valorem Tax Refunding Bond, Series 2014 ............................................................................................... 360 Communications Services Tax Revenue Refunding Note, Series 2015 ...................................................................... 361 Infrastructure Sales Surtax Revenue Note, Series 2020.............................................................................................. 362 Enterprise Funds – Bank Term Loans – Debt Service Requirements to Maturity: Summary of Debt Service – Utility System and Solid Waste System Notes................................................................ 363 Utility System Revenue Refunding Note, Series 2012 ................................................................................................. 364 Utility System Revenue Refunding Note, Series 2015 ................................................................................................. 365 Solid Waste System Revenue Refunding Note, Series 2015 ...................................................................................... 366 Subordinate Utility System Revenue Refunding Note, Series 2021 ............................................................................ 367 Solid Waste System Revenue note, Series 2021......................................................................................................... 368 SINGLE AUDIT GRANTS COMPLIANCE SECTION: Sarasota County Board of County Commissioners: 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 Governmental Auditing Standards..........................................................................................................................370 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 ...................................................................................................................372 7
SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Schedule of Expenditures of Federal Awards and State Financial Assistance...........................................................374 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ......................................377 Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects ..379 8
Introductory Section 9
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KAREN E. RUSHING Clerk of the Circuit Court and County Comptroller 2000 Main Street P.O. Box 3079 Sarasota, FL 34230-3079 Phone: 941-861-7400 www.SarasotaClerk.com March 30, 2022 To the Citizens of Sarasota County, Florida: We are pleased to present to you the Annual Comprehensive Financial Report of Sarasota County, Florida for the fiscal year ended September 30, 2021. The Clerk of the Circuit Court and County Comptroller, by authority of the Constitution of the State of Florida, is responsible for both the accuracy of the presented data as well as the completeness and fairness of the presentation. We believe the data, as presented, is accurate in all material aspects, that it is presented in a manner designed to fairly set forth the financial position and results of the operations of the County, and that all disclosures necessary to enable the reader to obtain a comprehensive understanding of the County have been included. Internal controls for the County have been designed to provide reasonable assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintain accountability for 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 judgements by management. Chapter 218.39 of the Florida Statutes requires an annual independent certified public accountant’s financial audit of counties in the State. This requirement has been met for the fiscal year ended September 30, 2021. In addition to meeting the requirements set forth in the state statutes, the audit was designed to meet the requirements of the Government Auditing Standards, the audit requirement of title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance or UG), and the Rules of the Auditor General, Chapter 10.550. The County’s financial statements were audited by Carr, Riggs & Ingram, LLC., an independent certified public accounting firm. The goal of the audit is to provide reasonable assurance that the financial statements are free from material misstatement. Based on their audit, the independent auditors concluded that there was a reasonable basis for rendering an unmodified opinion that the County’s financial statements, for the fiscal year ended September 30, 2021, were fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditors’ report is located at the front of the Financial Section of this report. The independent auditors' reports related specifically to Government Auditing Standards and the single audit are included in the Single Audit Grants Compliance Section. Management’s Discussion and Analysis (MD&A) can be found immediately following the independent auditors’ report. The MD&A provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. County profile Sarasota County is a political subdivision of the State of Florida and was formally incorporated in 1921. Located on the southwest coast of Florida, the County is a 725 square mile area with outstanding natural beauty. The resident population served is approximately 441,508. The resident population includes Unincorporated County (pop. 277,128) and four municipalities: the cities of Sarasota (pop. 55,386), Venice (pop. 26,103), North Port (pop. 78,129) and the Town of Longboat Key (pop. 4,762). Sarasota County is empowered to levy a property tax on both real and personal property located within its boundaries. Clerk of Circuit and County Court Clerk of Board of County Commissioners County Comptroller, Auditor and Recorder 11
On November 3, 1971, the citizens of Sarasota County adopted a Home Rule Charter in accordance with the Constitution and Statutes of the State of Florida. The Home Rule Charter sets forth a “commission” form of government under which a five member Board of County Commissioners is elected to serve as the executive and legislative body for the County. The County Commissioners appoint both a County Administrator and a County Attorney. The County Administrator’s duties include the administration of directives and policies of the Commissioners, responsibility for the operation of all Departments and provision of services under the purview of the Commissioners. The County Attorney represents the officials and employees of Sarasota County in all civil and legal matters relating to the discharge of their official duties. The citizens of the County also elect a Sheriff, a Clerk of the Circuit Court and County Comptroller, a Supervisor of Elections, a Tax Collector and a Property Appraiser, whose responsibilities and duties are set forth in the Home Rule Charter. Sarasota County offers many services to its citizens including fire and police protection; emergency medical services; construction and maintenance of street and traffic systems, highways, bridges and other infrastructure; preservation and maintenance of beaches, parks and environmentally sensitive lands; recreational facilities, programs and cultural activities; comprehensive planning and community development; community information and education programs; health and human services; water and wastewater utilities; solid waste disposal facilities; stormwater utility facilities; and public transportation activities. The financial statements of Sarasota County include all governmental functions and operations for which the County is financially accountable. The financial statements include the General Fund and all of the elected officials referred to above, since the County Commissioners are responsible for reviewing and incorporating the annual operating budget for each elected official into the County’s budget. Separate financial statements may be obtained for these constitutional officers through the Clerk of the Circuit Court and County Comptroller’s office. The financial statements also include various other special taxing districts which are defined in Note 1, Section A to the financial statements. The Clerk of the Circuit Court and County Comptroller publishes two supplementary documents each fiscal year to provide citizens additional information relating to financial matters of the County. The Consolidated Major Revenue and Debt Report provides a summary and description of the County’s primary revenue sources along with information related to the extent, nature and purpose of the County’s indebtedness, including arbitrage. In addition, the Popular Annual Financial Report (PAFR), also known as the IMPACT Report, is designed to provide the citizens of the County with an understanding of where County revenues came from and how those dollars were managed and spent in an easy to read format. These publications may be obtained from the Clerk of the Circuit Court and County Comptroller’s website (www.sarasotaclerk.com). Sarasota County follows the laws of the State of Florida regarding the control, adoption and amendment of the budget during each fiscal year. Formal budgetary integration is employed as a management control device during the year for all fund types. The County Budget Officer must submit a tentative budget to the County Commissioners prior to July 15th of each year for the following fiscal year. The budget may be amended up until 60 days after the end of the fiscal year. Budgets for all funds, except for capital project funds and proprietary funds, are adopted on a basis consistent with GAAP. Capital project funds are prepared for the project life rather than for the current fiscal year. The financial plan may be obtained from the Office of Financial Management’s website (www.scgov.net). Local economy Sarasota County continues to maintain financial strength and stability while simultaneously implementing policies to further enhance the health, safety, and welfare enjoyed by its citizens. In response to the continuing global health crisis - COVID 19, Sarasota County continued to partner with the Florida Department of Health and other State and local partner agencies for citizens and local businesses. While all local industries were impacted by the global health crisis – COVID 19, the County has seen positive recovery momentum locally. The unemployment rate for Sarasota County averaged 4.1 percent for fiscal year 2021, which is significantly lower than that of the prior fiscal year, and is below the National and State unemployment rates. 12
Taxable property values increased 7.1 percent and County population continued to increase over the prior fiscal year. During fiscal year 2021, Sarasota County saw a 28.5 percent increase in tourists visiting the area with nearly 2.9 million visitors. Tourism rebounded this year to record numbers after the global health crisis – COVID-19 that impacted this activity in 2020. Local beach communities have earned an international reputation as a family vacation destination. The County is known for its thriving art community, with world class facilities including the Van Wezel Performing Arts Center. Sports tourism is strong with two Major League Baseball spring training stadiums and a premier rowing facility. The area is service industry oriented and the largest job sectors are healthcare, retail trade, accommodation and food service. Sarasota County is the winter home for approximately ninety six thousand out-of-town residents. Long-term financial planning The County’s budget is developed for a five-year horizon. Each department prepares a five-year financial plan which addresses financial sustainability and efficient delivery of services. A five-year capital improvement program has been developed and integrated into the five-year financial plans. Management has developed fiscal policies for the adopted financial plan regarding reserves, transfers, capital improvements, fund balances, and revenues. The Board of County Commissioners has formally adopted a Debt Management Policy, an Investment Policy, and a Financial Reserves Policy. The Investment Policy is described in Note 1, Section D to the financial statements and the Financial Reserves Policy is described in Note 1, Section Q to the financial statements. Both Fitch and Standard & Poor’s, national bond rating agencies, reflect the County as having a AAA General Obligation (G.O.) Bond rating. The General Fund’s fund balance increased from $111.4 million at September 30, 2020 to $130.5 million at September 30, 2021. The majority (77.8 percent) of the General Fund’s fund balance of $130.5 million has been classified in accordance with the Financial Reserves Policy including provisions for a Contingency/Emergency/Disaster Relief Reserve, a Budget Stabilization/Economic Uncertainty Reserve, and a reserve for compensated absences (unpaid but earned vacation and sick leave), leaving an assigned subsequent years expenditure budgetary fund balance (fund balance budgeted to be used in fiscal year 2022) of $22.8 million (17.5 percent). Relevant financial policies Consistent with the 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, the debt will be refunded. The Investment Policy was established by ordinance in 1989 and most recently amended in October 2018. The Investment Policy emphasizes safety of capital as the highest priority. To ensure the safety and the protection of the public’s assets, the investment portfolio shall be designed with the annual objective of exceeding the average return on the corresponding Treasury maturity, based on the portfolio’s average duration. The portfolio is actively managed to maximize the return on investments by diversifying maturity dates and asset classes. The portfolio is structured to provide sufficient liquidity to pay current obligations. The Association of Public Treasurers of the United States and Canada (APT US&C) awarded Sarasota County, during fiscal year 2019, a Certificate of Excellence for its investment policy. This is the fourth time Sarasota County has received this certification and denotes the County has a sound investment policy founded upon professional standards to assist in ensuring prudent management of public funds. This certification should be renewed every three years. Additionally, in September 2021 Fitch Ratings affirmed a “AAAf” International Fund Credit Quality Rating (FCQR) and “S1” Fund Market Risk Sensitivity Rating (MRSR) for the Sarasota County Investment Portfolio. 13
The rating reflects Fitch’s review of the portfolio’s investment and credit guidelines, the portfolio’s credit quality and diversification. The “AAAf” FCQR indicates the highest underlying credit quality (or lowest vulnerability to default.) The “S1” MRSR indicates a very low sensitivity to market risk. In fiscal year 2021, the County portfolio, under the direction of the Clerk of Circuit Court and County Comptroller, maintained a weighted average yield of 0.46 percent. The following graph illustrates the County’s monthly portfolio yield in comparison to several benchmarks during fiscal year 2021. The County earned a total of $49.2 million in interest income over the past three years, of which $8.7 million was earned in fiscal year 2021. 14
Major Initiatives - Annual Action Agenda The Sarasota County Strategic Plan outlines five key goals for the next five years. The annual policy item and action agenda has been developed to support the County’s strategic goals and to provide value to residents simultaneously. The agenda lays out a tactical plan that is prioritized to include the Board Policy and Administration Agendas. Sarasota County’s strategic planning process has resulted in a Board-directed strategic plan that has provided guidance to staff on actions to be considered in budget planning and agenda setting. In 2021, the Board adopted seven priorities in the Board Policy Agenda, to include: Destination Athletic Field Complex and Destination Playgrounds Mental Health Special Taxing District New Light Industrial and Manufacturing (ILW) Options Post Census Redistricting and Single Member District Review State Road 681 Full Interchange Streamline Permitting Process Review Workforce/Affordable Housing with Mixed Use and Redevelopment Options In addition to the Board Policy Agenda, Sarasota County also adopted an Administration Agenda for 2021 which is closely monitored by County Administration throughout the year. The County’s Annual Policy and Action Agenda has been summarized by goal, status, department, and action type. Awards and acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Sarasota County for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2020. This was the thirty-seventh consecutive year that Sarasota County received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report satisfied 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 Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program requirements and we will submit it to the GFOA to determine its eligibility for another certificate. In addition to being awarded the Certificate of Achievement, Sarasota County was issued the Distinguished Budget Presentation Award for fiscal year 2021. This was the thirty-first consecutive year that Sarasota County received this award. Sarasota County and the Clerk of the Circuit Court and County Comptroller received its ninth consecutive Outstanding Achievement in Popular Annual Financial Reporting (PAFR) recognition from the Government Finance Officers Association for its IMPACT Report for the year ended September 30, 2020. This Annual Comprehensive Financial Report is a product of the dedication of the Finance Department of the Clerk of the Circuit Court and County Comptroller of Sarasota County as Auditor and Accountant for the Board of County Commissioners. Recognition goes to: Joni Brown, Tanya Copeland, Michael Dunlop, Anthony Kiwczak, CPA, Leighann Kooy, Nina Plotkina-Mahadeo, CFE, John Oravec, Carlos Pellecer, Elizabeth Ramsden, Marcello Romeiro, Blaine Waldhalm, Jennifer Wion, and Katherine Woodruff. 15
We would like to thank the County Administrator and his staff, the County Attorney, the Board of County Commissioners, and the other Constitutional Officers for their dedicated support in planning and conducting the financial operations of the County in a responsible and fiscally prudent manner. Sincerely, Karen E. Rushing, Clerk of the Circuit Court and County Comptroller Nicole E. Jovanovski, CPA Director of Finance 16
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Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement for Excellence in Financial Reporting to Sarasota County for its Annual Comprehensive Financial Report for the fiscal year ended September 30, 2020. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. Such reports 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 our current report continues to conform to the Certificate of Achievement Program requirements, and we are submitting to GFOA for review. 18
Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Sarasota County Florida For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2020 Executive Director/CEO 19
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Sarasota County Government Organizational Chart State Attorney Public Defender Sherif Circuit & County Court Board Of County Commissioners Clerk Of The Circuit Court & County Comptroller Property Appraiser Supervisor Of Elections Tax Collector Citizens Citizen Boards & Commissions County Administrator Ofce Of County Attorney Community Services Administrative Services Emergency Services Health & Human Services Libraries & Historical Resources Parks, Recreation & Natural Resources UF/IFAS Extension & Sustainability Commission Services Enterprise Information Technology Financial Management Human Resources Planning & Development Services Public Utilities Public Works Sarasota County Area Transit (SCAT) Community Development/ Infrastructure Communications Community/ Intergovernmental Relations Economic Development Ethics & Compliance 21
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Financial Section 23
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INDEPENDENT AUDITORS’ REPORT Honorable Members of the Board of County Commissioners Sarasota County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, businesstype activities, each major fund, and the aggregate remaining fund information of Sarasota County, Florida (the “County”), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County as of September 30, 2021, and the 25
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