Sarasota County Comprehensive Annual Financial Report 2020

8B8BUUU UUU UUU U Sarasota County, Florida Notes to Financial Statements September 30, 2020 In March 2021, the County issued Subordinate Utility System Refunding Revenue Note, Series 2021 in the amount of $36,740,000 to (a) refinance the outstanding loans to the County from the State of Florida Department of Environmental Protection or related entities related to the County’s water and sewer utility system, (b) refund the outstanding Sarasota County, Florida Subordinate Utility System Refunding Revenue Note, Series 2012, and (c) to pay the costs of such loan. In late March 2020 the Coronavirus Aid, Relief, and Economic Security Act (Act) was signed into law. This Act provided substantial federal government support to individuals, businesses, hospitals, and specific industries dealing with the pandemic and its associated economic consequences. Among other things, the legislation created the Coronavirus Relief Fund (CRF) within the U.S. Department of the Treasury to fund necessary state and local government expenditures incurred due to the COVID-19 public health emergency. The U.S. Department of the Treasury distributed funds directly to the State and local governments with populations greater than 500,000 based on a percentage allocation. Since Sarasota County’s population is under 500,000, in July 2020 the County executed an agreement with the State of Florida Division of Emergency Management, as a subrecipient. The County was allocated $75.6 million, and initially received $18.9 million in July 2020 for use on eligible expenditures. The remainder of the allocated funding was disbursed on a reimbursement basis upon submission of eligible expenditures. The County subsequently received the remainder of the allocation, or $56.7 million in January 2021. NOTE 16. DEFICIT FUND BALANCES The following Major Governmental fund ended the year with a deficit balance in unassigned fund balance: Federal, State and Local Grants Fund The Federal, State and Local Grants Fund has a negative unassigned fund balance of $6,897,806 as of September 30, 2020. This negative balance is a result of Hurricane Irma making landfall on September 10, 2017 and the Coronavirus Disease (COVID-19) public health emergency. This negative balance will clear after the Federal Emergency Management Agency (FEMA) project worksheets are finalized and approved for reimbursement for both related events. The following Enterprise fund ended the year with a deficit balance in unrestricted net position: Non-major Transportation Authority The Non-major Transportation Authority Fund has a negative unrestricted net position of $3,568,548 as of September 30, 2020. This negative balance is due to the application of pension related accounts as required in GASB 68. The following Internal Service funds ended the year with a deficit balance in unrestricted net position: Workers’ Compensation The Workers’ Compensation Fund has a negative unrestricted net position of $6,001,256 as of September 30, 2020. This increase in negative net position is due to an unforeseen increase in claims paid of $1.1 million. Public Works The Public Works Fund has a negative unrestricted net position of $2,489,073 as of September 30, 2020. This negative balance is due to the application of pension related accounts as defined in GASB 68. 143