Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 Such rates, fees, rentals or other charges shall not be reduced so as to be insufficient to provide net revenues for such purposes. The Solid Waste System Funds were in compliance with these covenants at year-end. Arbitrage Rebate Liability The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax- exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service at least every five years. At September 30, 2019 the County reported a total arbitrage rebate liability of $9,844 in governmental activities. 1B Changes in Long-term Liabilities The following is a summary of changes in long-term liabilities for the year-ended September 30, 2019: Additions to general obligations is comprised of one new bond issue at a premium totaling $36,384,825 Additions to revenue bonds are comprised of one revenue bond issued at a premium totaling $17,570,308, two revenue refunding bonds issued at a premium totaling $34,034,60 2 . Retirement of revenue bonds includes current year principal payments, amortization of bond premiums, and advance refunding of three bonds. Additions to commercial paper are for three new notes. Retirements of commercial paper are for current year principal payments. Retirements of notes payable are for current year principal payments. Claims and judgements in the governmental activities are liquidated in the internal service funds. Compensated absences and rebatable arbitrage are liquidated in the respective funds from which expenses are paid. Beginning Balance Additions Retirements Ending Balance Amounts Due Within One Year Governmental Activities General obligation bonds $ - $ 36,384,825 $ - $ 36,384,825 $ 800,000 Revenue bonds 202,368,000 51, 604 , 910 52, 234 , 050 201,738,860 17,415,000 Commercial paper debt 7,703,000 10,795,000 506,000 17,992,000 511,000 Notes and loans payable from direct placements 122,568,000 - 11,544,000 111,024,000 13,465,000 Notes and loans payable from direct borrowings 589,631 - 62,512 527,119 67,555 Compensated absences 25,020,531 17,946,523 15,286,755 27,680,299 19,057,219 Rebatable arbitrage - 9,844 - 9,844 - Claims and judgments 26,941,681 56,805,133 56,616,761 27,130,053 9,962,227 Total long-term liabilities – governmental activities $385,190,843 $173, 546 , 235 $136, 250 , 078 $422,487,000 $ 61,278,001 120