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2023 Sarasota County Annual Comprehensive Financial Report

Sarasota County, Florida Annual Comprehensive Financial Report Fiscal Year Ended September 30, 2023

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ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED SEPTEMBER 30, 2023 SARASOTA COUNTY SARASOTA, FLORIDA BOARD OF COUNTY COMMISSIONERS MICHAEL MORAN JOE NEUNDER RON CUTSINGER MARK SMITH NEIL RAINFORD 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, 2023 TABLE OF CONTENTS INTRODUCTORY SECTION: Page Letter of Transmittal .............................................................................................................................................................. 11 Certificate of Achievement for Excellence in Financial Reporting for Fiscal Year 2022 ....................................................... 19 Sarasota County Government Organizational Chart ............................................................................................................ 21 FINANCIAL SECTION: Independent Auditor's 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 ..................................................................................................................................................... 104 5) Interfund Receivables, Payables, and Transfers............................................................................................. 105 6) Capital Assets.................................................................................................................................................. 107 3

SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS 7) Long-Term Debt............................................................................................................................................... 116 8) Landfill Closure and Postclosure Care Cost.................................................................................................... 138 9) Risk Management............................................................................................................................................ 138 10) Employee Retirement Plans ............................................................................................................................ 139 11) Deferred Compensation Plan .......................................................................................................................... 150 12) Post-Employment Benefits (Other Than Pensions)......................................................................................... 150 13) Contingencies .................................................................................................................................................. 155 14) Subsequent Events ......................................................................................................................................... 156 15) Deficit Fund Balances...................................................................................................................................... 156 16) Tax Abatement ................................................................................................................................................ 157 Required Supplementary Information: Schedule of Changes in the County’s Net OPEB Liability and Related Ratios ..................................................... 160 Schedule of Contributions for the County’s OPEB Trust Fund .............................................................................. 162 Schedule of Changes in the Sheriff’s Total OPEB Liability and Related Ratios.................................................... 164 Schedule of Proportionate Share of Net Pension Liability ..................................................................................... 166 Schedule of Contributions ...................................................................................................................................... 172 Governmental Funds Financial Statements: Combining and Individual Fund Statements and Other Supplemental Information: Combining Balance Sheet – Nonmajor Governmental Funds ............................................................................... 184 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds ...................................................................................................................... 186 Special Revenue Funds: Subcombining Balance Sheet – Nonmajor Special Revenue Funds........................................................ 188 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds ..................................................................................... 194 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Special Revenue Funds: Transportation Special Revenue Fund ............................................................................................... 200 Building and Zoning Special Revenue Fund ...................................................................................... 201 Tourist Development Special Revenue Fund..................................................................................... 202 Franchise Utilities Special Revenue Fund.......................................................................................... 203 Mosquito Control Special Revenue Fund........................................................................................... 204 Grants in Aid Special Revenue Fund ................................................................................................. 205 Environmental Resources Special Revenue Fund............................................................................. 206 Gifts, Donations and Recreation Special Revenue Fund................................................................... 207 Improvement Districts Special Revenue Fund ................................................................................... 208 Court Improvements Special Revenue Fund ..................................................................................... 209 Street Lighting Districts Special Revenue Fund ................................................................................. 210 Arts in Public Places Special Revenue Fund...................................................................................... 211 Economic Development Special Revenue Fund ................................................................................ 212 Moving Violation Surcharge Special Revenue Fund .......................................................................... 213 Mental Healthcare Special District Fund ............................................................................................ 214 Law Enforcement Special Revenue Fund .......................................................................................... 215 Sheriff’s Special Revenue Fund ........................................................................................................ 216 Clerk’s Special Revenue Fund 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SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS Debt Service Funds: Subcombining Balance Sheet – Nonmajor Debt Service Funds .............................................................. 218 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Debt Service Funds............................................................................................ 222 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Nonmajor Debt Service Funds: Bank Term Loans Debt Service Fund ................................................................................................ 226 Commercial Paper Debt Service Fund ............................................................................................... 227 Second Guaranteed Entitlement Series 2013 Fund........................................................................... 228 Infrastructure Sales Surtax Series 2014A, Series 2015, and Series 2018 Fund ............................... 229 Capital Improvement Series 2017 Fund ............................................................................................. 230 Capital Improvement Series 2018A Fund .......................................................................................... 231 Capital Improvement Series 2018B Fund .......................................................................................... 232 General Obligation Series 2019, and Series 2020 Fund.................................................................... 233 Capital Improvement Series 2019A Fund .......................................................................................... 234 Capital Improvement Series 2019B Fund .......................................................................................... 235 Capital Improvement Series 2019C Fund .......................................................................................... 236 Capital Improvement Series 2020 Fund ............................................................................................. 237 Public Improvement Series 2021A Fund ............................................................................................ 238 Public Improvement Series 2021B Fund ............................................................................................ 239 Capital Improvement Series 2023A Fund .......................................................................................... 241 Capital Projects Funds: Subcombining Balance Sheet – Nonmajor Capital Projects Funds.......................................................... 242 Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Capital Projects Funds ....................................................................................... 244 Permanent Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Library Endowments ......................................................................................................... 247 Internal Service Funds: Combining Statement of Net Position – Internal Service Funds............................................................................ 250 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds ............................................................................................................. 252 Combining Statement of Cash Flows – Internal Service Funds ............................................................................ 254 Fiduciary Funds: Combining Statement of Fiduciary Net Position – Custodial Funds ...................................................................... 260 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds................................................... 262 STATISTICAL SECTION: Financial Trends: Net Position by Component .......................................................................................................................................... 268 Changes in Net Position ............................................................................................................................................... 270 Fund Balances, Governmental Funds .......................................................................................................................... 274 Changes in Fund Balances, Governmental Funds....................................................................................................... 276 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property.............................................................................. 279 Direct and Overlapping Property Tax Rates................................................................................................................. 280 Principal Property Taxpayers ....................................................................................................................................... 282 5

SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS Property Tax Levies and Collections ............................................................................................................................ 283 Property Value, Construction, and Bank Deposits ....................................................................................................... 284 Special Assessment Billings and Collections ............................................................................................................... 285 Coverage of Guaranteed Entitlement for All Counties by Revenue Sharing Trust Fund Receipts for All Counties ......................................................................................................................................... 286 Coverage of Guaranteed Entitlement for Sarasota County by Revenue Sharing Trust Fund Receipts for Sarasota County.................................................................................................................................. 287 State of Florida and Sarasota County Historical Sales Tax Collections....................................................................... 288 State of Florida and Sarasota County Historical Local Government Half-Cent Sales Tax .......................................... 289 Sarasota County and Municipalities Percentage Distributions of Statewide Half-Cent Sales Tax Revenues ............. 291 Debt Capacity: Ratios of Outstanding Debt by Type............................................................................................................................. 292 Ratios of General Bonded Debt Outstanding ............................................................................................................... 294 Direct and Overlapping Governmental Activities Debt ................................................................................................. 295 Legal Debt Margin Information ..................................................................................................................................... 297 Pledged-Revenue Coverage ........................................................................................................................................ 298 Coverage of Maximum Annual Debt Service Requirement by Local Government Half-Cent Sales Tax Revenues ............................................................................................................................... 304 Demographic and Economic Information: Demographic and Economic Statistics ......................................................................................................................... 305 Principal Employers ...................................................................................................................................................... 306 Top Ten Manufacturers ................................................................................................................................................ 307 Miscellaneous Statistics ............................................................................................................................................... 308 Operating Information: Full-Time Equivalent County Government Employees by Function/Program .............................................................. 309 Operating Indicators by Function/Program................................................................................................................... 310 Capital Assets Statistics by Function/Program............................................................................................................. 312 OTHER SUPPLEMENTAL INFORMATION: Summary Schedule of Revenues, Expenditures and Changes in Fund Balances – General Fund................................... 316 Assessed Value of Taxable Property .................................................................................................................................. 317 Pro Forma Debt Service Coverage – Limited Ad Valorem Tax Bonds, Series 2005, Series 2010 and Series 2014......... 318 Commercial Paper - Specific Borrowings ........................................................................................................................... 319 Communication Services Tax Revenue Bonds Series 2010, and Communication Services Tax Revenue Refunding Note, Series 2014 and 2015 Continuing Disclosure..................................................................................................... 320 Infrastructure Sales Surtax Revenue Bonds, Series 2014, 2015 and 2018 Continuing Disclosure and Infrastructure Sales Surtax Revenue Note, 2020......................................................................................................... 321 Pro Forma Debt Service Coverage – Public Improvement Revenue Refunding Bonds, Series 2021A and Series 2021B ................................................................................................................................................................ 323 Historical Collections of Revenues from Revenue Sharing Trust Fund for Counties and Pledged Revenue Sharing Moneys .325 Utility Bond Issue Continuing Disclosure ............................................................................................................................ 326 Schedule of Changes in the County’s Net OPEB Liability and Related Ratios .................................................................. 334 Schedule of Contributions for the County’s OPEB Trust Fund ........................................................................................... 336 Schedule of Changes in the Sheriff’s Total OPEB Liability and Related Ratios................................................................. 338 General Obligation Bonds – Description............................................................................................................................. 341 General Government – Revenue Bonds – Description: Revenue Bond Issues .................................................................................................................................................. 342 Enterprise Funds – Revenue Bonds – Description: 6

SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS Utility System Revenue Bonds ..................................................................................................................................... 346 General Obligation Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – General Obligation Bonds ............................................................................................... 348 General Obligation Bonds, Series 2019 ....................................................................................................................... 349 General Obligation Bonds, Series 2020 ....................................................................................................................... 350 General Government – Revenue Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – Revenue Bonds ............................................................................................................... 351 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 ......................................................................... 352 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 ......................................................................... 353 Capital Improvement Revenue Bonds, Series 2017 .................................................................................................... 354 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2018 ......................................................................... 355 Capital Improvement Revenue Refunding Bonds, Series 2018A ................................................................................ 356 Capital Improvement Revenue Refunding Bonds, Series 2018B ................................................................................ 357 Capital Improvement Revenue Bonds, Series 2019A .................................................................................................. 358 Capital Improvement Revenue Refunding Bonds, Series 2019B ................................................................................ 359 Capital Improvement Revenue Refunding Bonds, Series 2019C ................................................................................ 360 Capital Improvement Revenue Bonds, Series 2020 .................................................................................................... 361 Public Improvement Revenue Refunding Bonds, Series 2021A.................................................................................. 362 Public Improvement Revenue Refunding Bonds, Series 2021B.................................................................................. 363 Capital Improvement Series 2023A Fund .................................................................................................................... 364 Enterprise Funds – Revenue Bonds – Debt Service Requirements to Maturity: Summary of Debt Service – Utility System Revenue Bonds ........................................................................................ 365 Utility System Revenue Bonds, Series 2016A ............................................................................................................. 366 Utility System Revenue Refunding Bonds, Series 2016B ............................................................................................ 367 Utility System Revenue Refunding Bonds, Series 2019A ............................................................................................ 368 Utility System Revenue Refunding Bonds, Series 2020A ............................................................................................ 369 Utility System Revenue Refunding Bonds, Series 2020B ............................................................................................ 370 Utility System Revenue Refunding Bonds, Series 2022 .............................................................................................. 371 Utility System Revenue Refunding Bonds, Series 2023 .............................................................................................. 373 General Government – Bank Term Loans – Description: Bank Term Loans ......................................................................................................................................................... 374 Enterprise Funds – Bank Term Loans – Description: Utility System and Solid Waste System Notes ............................................................................................................. 376 General Government – Bank Term Loans – Debt Service Requirements to Maturity: Summary of Debt Service – Bank Term Loans ............................................................................................................ 378 Bank Term Revenue Note, Series 2013A .................................................................................................................... 379 Bank Term Revenue Note, Series 2014A .................................................................................................................... 380 Communication Services Tax Revenue Refunding Note, Series 2014........................................................................ 381 Five-Cent Local Option Fuel Tax Revenue Refunding Note, Series 2014................................................................... 382 Bank Term Revenue Note, Series 2014B .................................................................................................................... 383 Limited Ad Valorem Tax Refunding Bond, Series 2014 ............................................................................................... 384 Communications Services Tax Revenue Refunding Note, Series 2015 ...................................................................... 385 Infrastructure Sales Surtax Revenue Note, Series 2020.............................................................................................. 386 Enterprise Funds – Bank Term Loans – Debt Service Requirements to Maturity: Summary of Debt Service – Utility System and Solid Waste System Notes................................................................ 387 Utility System Revenue Refunding Note, Series 2015 ................................................................................................. 388 Subordinate Utility System Revenue Refunding Note, Series 2021 ............................................................................ 389 Solid Waste System Revenue Note, Series 2021...................................................................................................... 391 7

SARASOTA COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2023 TABLE OF CONTENTS SINGLE AUDIT GRANTS COMPLIANCE SECTION: Sarasota County Board of County Commissioners: Independent Auditor’s 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 ........................................................................................................................... 394 Independent Auditor’s 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 .................................................................................................................... 396 Schedule of Expenditures of Federal Awards and State Financial Assistance............................................................ 401 Notes to the Schedule of Expenditures of Federal Awards and State Financial Assistance ....................................... 404 Schedule of Findings and Questioned Costs Federal Awards Programs and State Financial Assistance Projects.... 406 Affidavit of the Clerk of Circuit Court and County Comptroller – Annual Impact Fee Report....................................... 415 MANAGEMENT LETTERS / ELECTED OFFICIALS’ FINANCIAL STATEMENTS: SARASOTA COUNTY: Management Letter and Comments SARASOTA COUNTY CLERK OF CIRCUIT COURT: Independent Auditor’s Report Financial Statements Management Letter SARASOTA COUNTY PROPERTY APPRAISER: Independent Auditor’s Report Financial Statements Management Letter SARASOTA COUNTY SHERIFF: Independent Auditor’s Report Financial Statements Management Letter SARASOTA COUNTY SUPERVISOR OF ELECTIONS: Independent Auditor’s Report Financial Statements Management Letter SARASOTA COUNTY TAX COLLECTOR: Independent Auditor’s Report Financial Statements Management Letter 8

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KAREN E. RUSHING Clerk of the Circuit Court and County Comptroller February 20, 2024 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, 2023. 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 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. This requirement has been met for the fiscal year ended September 30, 2023. 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 purpose 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, 2023, 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 464,223. The resident population includes Unincorporated County (pop. 288,097) and four municipalities: the cities of Sarasota (pop. 57,005), Venice (pop. 27,793), North Port (pop. 86,552) and the Town of Longboat Key (pop. 4,776). Sarasota County is empowered to levy a property tax on both real and personal property located within its boundaries. 2000 Main Street • P.O. Box 3079 • Sarasota, FL 34230-3079 • Phone: 941-861-7400 • www.SarasotaClerk.com 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 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 State Constitution. 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; storm water 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 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 The local economy has been steadily improving over the past few years. The unemployment rate for Sarasota County averaged 2.8 percent for fiscal year 2023, which is slightly higher than that of the prior fiscal year and the State rate, but still remains below the National unemployment rate. Taxable property values increased 14.2 percent and County population continued to increase over the prior fiscal year. During fiscal year 2023, Sarasota County saw a 2.0 percent increase in tourists visiting the area with almost 3.1 million visitors. 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 and social assistance, government, accommodation and food service, and retail trade. Sarasota County is the winter home for approximately seventy-nine thousand out-of-town residents. 12

Long-term financial planning The County’s budget is developed for a five-year horizon. Each department prepares a five-year financial plan that 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 $117.8 million at September 30, 2022 to $144.9 million at September 30, 2023. The majority (82.8 percent) of the General Fund’s fund balance of $144.9 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 2024) of $22.9 million (15.8 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 September 2023. 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. Sarasota County continues to uphold prestigious recognition from the Association of Public Treasurers of the United States and Canada (APT US&C) for its investment policy and maintains the Association’s Investment Policy Certificate of Excellence Award. This is the fourth time Sarasota County has received this accreditation and denotes the County has a sound investment policy founded upon professional standards to assist in ensuring prudent management of public funds. Additionally, the Sarasota County Investment Policy holds an “AAAf” International Fund Credit Quality Rating (FCQR) and “S1” Fund Market Risk Sensitivity Rating (MRSR) based on Fitch Ratings. 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. 13

In fiscal year 2023, the County portfolio, under the direction of the Clerk of Circuit Court and County Comptroller, maintained a weighted average yield of 4.92 percent. The following graph illustrates the County’s monthly portfolio yield in comparison to several benchmarks during fiscal year 2023. The County earned a total of $57.2 million in interest income over the past three years, of which $37.0 million was earned in fiscal year 2023. 14

Major Initiatives - Annual Action Agenda Each year the Board adopts a 15-year Strategic Plan that incorporates its Policy Agenda and Action items. That plan provides an opportunity to directly associate the goals of our strategic plan with the annual Financial Plan. In many instances, items selected for the Board Policy Agenda are explored more fully in a strategic plan year, and then become part of future strategic plans as Administration Agenda Items or within the Department Actions or Major Projects. This process ensures that Board driven strategic planning is prioritized as part of the budget process. Our community has seen major initiatives such as the Legacy Trail Extension, water quality, infrastructure improvements, and the future of County Administration locations move through the strategic planning process from Board priorities to departmental implementation. This is an essential component of aligning the Boardadopted Strategic Plan to the annual Financial Plan. The 2023 Strategic Plan identifies 13 Board Policy Items as the Board’s top priorities. The Board Policy Agenda Items include:  Affordable Housing: What’s left  Contracted Social Services  Design Flood Evaluation: FEMA lowering base flood  EDC Future  Fruitville Expansion Phase 1 & 2  Health of the Bay: Midnight Pass and future openings  Indoor Sport Facility Design-Employee Shelter Opportunity  Jail Future State  Review Opportunities for Increased Public Access to Preserve & Protected Lands  South County Regional Park Planning  South River Road  South River Road Public/Private Partners  SWFWMD Project Funding There are 235 actions identified in the 2023 Policy Item and Action Agenda. In each case, a department owner is responsible for the management of the action. Department owners work in collaboration with their counterparts to track and report action progress. Through this process, the organization is evolving to focus efforts on the strategic plan while continuously making improvements. Since the adoption of these priorities, the County has aligned work plans to emphasize efforts in these areas which are funded as part of the fiscal year 2023 Adopted Financial Plan. 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, 2022. This was the thirty-ninth 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. 15

In addition to being awarded the Certificate of Achievement, Sarasota County was issued the Distinguished Budget Presentation Award for fiscal year 2023. This was the thirty-third consecutive year that Sarasota County received this award. Sarasota County and the Clerk of the Circuit Court and County Comptroller received its eleventh 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, 2022. 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: Torrance Colon, Michael Dunlop, CPFIM, Lisa Glover, Anthony Kiwczak, CPA, Leighann Kooy, Luke Ogle, John Oravec, FMVA, Nina Plotkina-Mahadeo, CFE, Elizabeth Ramsden, Marcello Romeiro, Jennifer Wion, and Katherine Woodruff, CGFO, APM, CPRS. 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 Comprehensive Financial Report for the fiscal year ended September 30, 202 . In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized 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, 2022 Executive Director/CEO 19

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Sarasota County Government Organizational Chart State Attorney Public Defender Sheriff Circuit & County Court Board Of County Commissioners Clerk Of The Circuit Court & County Comptroller Property Appraiser Supervisor Of Elections Tax Collector Citizens County Administrator County Attorney Capital Projects Communications Emergency Services Govermental Relations Assistant County Administrator Deputy County Administrator Assistant County Administrator Enterprise Information Technology Health & Human Services Libraries & Historical Resources Public Utilities Financial Management Parks, Recreation & Natural Resources UF/IFAS Extension & Sustainability Public Works Planning & Development Services General Services Solid Waste Human Resources Breeze Transit 21

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