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HomeMy WebLinkAbout17-110 Exhibit B - 1.2NEW ISSIIE - BOOK ENTRY ONLY Moody's: "Aa3tt S&P: "AA-" (stable outlook) See "RATINGS" herein In the opi,nion of Nabors, Giblin & Nickerson, P.A. ("Bond, Counsel"), under etisti,ng stqtutes, regulatiorts, ndi,ngs and court dncisions, and, ossuming corry)Liatwe with cqrtain tq,s coaqna,nts descri,bed herei,n, intsrest on the Seri,es 2017 Bottds is eoclu.dnbl.e from gross innome of the owners thvreof for fed,qral innome tnfi pu?poses, and, is not an item of ta,r preference for purposes of the Jederal al.tsmatioe minimum taa i,mptosed on indiuiduak and, corporatiotts. Such interest, howeuer, will be innludnb\e in the cql,culation of certain corytorations' altsrnatiae minimum ta,rable income and mag be subject tn oth,er fed,erd inrome ta,r corsequ,srwes. See 'TAX EXEMPTIOLP hqrei,n for a general d,iscussion of Bond Counsel's opini,on and oth,er to,u cortsid,eratiorx. $46,865,000 sT. LUCrE COUNTY, FLORTDA NON-AD VALOREM REVENIIE BONDS, SERIES 2017 Dated: Date of Delivery Due: October 1, as shown on the inside cover St. Lucie Cor.rnty, Florida (the "County") is issuing its $46,865,000 Non-Ad Valorem Revenue Bonds, Series 2017 (the "Series 2017 Bonds") as firlly registered bonds, which initially will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC). Individuai purchases will be made in book entry form only in denominations of $5,000 and any integral mr:ltiple thereof. Purchasers of the Series 2017 Bonds (the "Beneflcial Owners") will not receive physical delivery of the Series 2017 Bonds. Trarsfer of ownership in the Series 2017 Bonds will be affected by DTC's book- entry system as described herein. As long as Cede & Co. is the registered owner as nominee of DTC, principal and interest payments will be made directly to such registered owner which will in turn remit such payments to the Participants (as defined herein) for subsequent disbursement to the Beneflcial Owners. Interest on the Series 2017 Bonds is payable semi- annually on October 1 and April 1 of each yeax commencing October L,2017. Principal of the Series 2017 Bonds is payable, when due, to the registered owners upon presentation and surrender at the designated corporate offlce ofU.S. Bank National Association, Jacksonville, Florida, as Paying Agent and Registrar. All payments of principal of and interest on the Series 2017 Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. The Series 2017 Bonds are payable from and secured by (i) the Pledged F\mds (as defned herein) and (ii) a covenant to budget and appropriate legally available non-ad valorem revenues sufflcient to pay debt service on the Series 2017 Bonds. See 'SECURITY FOR BONDS" herein. The Series 2017 Bonds are being issued pursuant to the authority and in compliance with the Constitution ofthe State ofFlorida, Chapter 125, Florida Statutes, Section 288.11631, Florida Statutes and other applicable provisions of law, and pursuant to Resolution No. 17-110 adopted by the Board of County Commissioners of the County (the "Board') on May L6,2017, as amended and supplemented from time to time (the'Resolution"). The Series 2017 Bonds are being issued to provide funds to (i) fnance the cost of the Project (as defned herein), and (ii) pay costs associated with the issuance ofthe Series 2017 Bonds. THE SERIES 2017 BONDS SIIALL NOT BE OR CONSTTTUTE GENERAL OBLIGATIONS OB INDEBTEDNESS OFTHECOI]NTYAS "BONDS''WITHINTHEMEANINGOFANYCONSTTIIITIONALORSTATUTORYPROVISION, BI]T SIIALL BE SPECIAL OBLIGATIONS OF TIIE COIJNIY, PAYABLE SOLELYFROM THE PLEDGED FI]NDS AND FROM AMOIJNTS BIIDGETED AND APPROPRTATED BY THE COIINTY FROM NON-AD VALOBEM REVENTTES IN ACCORDANCE WITH TIIE RESOLUTION. NO HOLDER OF ANY SEBIES 2017 BOND SIIALL EVER IIAVE THE BIGIIT TO COMPEL THE E)GRCISE OF ANYAD VALOREM TAXING POWER TO PAY SUCH SERIES 2017 BOND, OR BE ENTTTLED TO PAYMENT OF SUCH SEBIES 2017 BOND FROM ANy MONEYS OF THE COUMY EXCEPT FROM THE PI,EDGED FT]NDS AND THE NON-AD VAIOREM EEVENUES IN TIIE MANNER AND TO THE EXTEIIT PBOVIDED IN THE BESOLI]TION. Certain ofthe Series 2017 Bonds are subject to redemption as provided herein. This cover page contains certain information for quick reference only. It is not, and is not intended to be, a summary of this issue. Investors must read the entire Official Statement to obtain information essential to making an informed investment decision. The Series 2017 Bonns are offered whzn, os and, i,f i,ssued, subject to tlte approuing lcgal opinion of Nabors, Gi,bLin & Nickerson, PA, Tampa, Flnrida, Bond, Cour*el. Certnin l,egal matters will be possed on Jor the County by Daniel S. Mclntyre, Esquire, County Attom,eA, and by Bryant Miher OLfue P.A., Miami, Il,oridn, Disclosure CounseL to the County. HoUand, & Knight LLP, Lakeland,, F'lnr[da, is seruing os Counsel to the Und.etwriters. Pub\i.c Finarwial Management, Inc., Orlnndn, tr'Lorida is Fi,nanci,ol Aduisor to the County in regard to thc i,ssuarwe oJ thn Series 2017 Bonds. It is erpected that settl,ement for thc Series 2017 Bonds will occar through th,e fo,ci\iti,es of DTC in Nan York, Nan York on or about June 29, 2017. Wells Fargo Securities Citigroup Dated: June 16,2017 MATURITIES, AMOUNTS, INTEREST RATES, PRTCE, YIELD AND INITIAL CUSP NUMBERS $46,865,000 ST. LUCIE COUNTY, FLORIDA Non-Ad Valorem Revenue Bonds, Series 2017 $36,235,000 Serial Bonds Maturity (October 1) 2078 2079 2020 2027 2022 2023 2024 2025 2026 2027 2028 2029 2030 2037 2032 2033 2034 2035 2036 2037 Amount $1,125,000 1,160,000 1,205,000 7,270,000 1,330,000 1,395,000 7,465,000 1,540,000 1,615,000 1,700,000 1,795,000 '1,,870,000 7,965,000 2,065,000 2,770,000 2,275,000 2,390,000 2,510,000 2,635,000 2,765,000 lnterest Rate 3.000% 4.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 5.000 s.000 5.000 5.000 Price 702.539% 706.557 712.067 115.088 117.899 720.226 727.975 723.407 724.275 124.U9 723.207* 727.787" 720.878* 720.082+ 1.19.391* 1.1.8.705* 118.120* 777.635* 777.249" 776.865* Yield 0.960% 1.050 1.210 7.340 1.450 1.590 7.760 7.920 2.100 2.270 2.430* 2.570* 2.660* 2.740* 2.810* 2.880* 2.940* 2.990" 3.030* 3.070* lnitial CUSIP Numbers** 79207T4V3 79207T4W7 79207T4X9 79207T4Y7 79207T424 792071848 79207T886 79207T8C4 79207T8D2 79207T8E,0 79207T8F7 79207T8G5 79207T8H3 79207T819 79207TBK6 79207T8L4 79207TBM2 79207T8N0 79207T8P5 79207T8Q3 $10,630,000 5.00% Term Bonds due October 7,2042 Price 116.101%* Yield 3.150%* Initial CUSIP No. 79207TBR1 *Price and yield determined based on first call date of October 7,2027. ** The County is not responsible for the use of the CUSP Numbers referenced herein nor is any representation made by the County as to their correctness. The CUSIP Numbers provided herein are included solely for the convenience of the readers of this Official Statement. ST. LUCIE COUNTY, FLORIDA 2300 Virginia Avenue Fort Pierce, Florida 34982 (772) 462-7450 MEMBERS OF THE BOARD OF COUNTY COMMISSIONERS Chris Dzadovsky, Chairman Tod Mowery, Vice Chair Linda Bartz Frannie Hutchinson Cathy Townsend COUNTY ADMINISTRATOR Howard N. Tipton COUNTYATTORNEY Daniel S. McL:rtyre, Esq. INTERIM MANAGEMENT AND BTIDGET DIRECTOR |enni{er Hill CLERK OF THE CIRCUIT COURT |oseph E. Smith FINANCE DIRECTOR Shai Francis, CPA, CGFO, CGMA FINANCIAL ADVISOR Public Financial Management, Inc. Orlando, Florida BOND COUNSEL Nabors, Giblin & Nickerson, PA Tampa, Florida DISCLOSURE COUNSEL Bryant Miller Olive P.A. Miami, Florida No dealer, broker, salesman or other person has been authorized by the County to give any information or to make any representations in connection with the Series 2017 Bonds other than as contained in this Official Statement, and, if given or made, such inJormation or representations must not be relied upon as having been authorizedby the County. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Series 2017 Bonds by .Lny person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information set forth herein has been obtained from the County, The Depository Trust Company, and other sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the County with respect to any information provided by others. The Underwriters have provided the following sentence for inclusion in this Official Statement. The Underwriters listed on the cover page hereof have reviewed the information in this Official Statement in accordance with and as part of their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accurary or completeness of such information. The information and expressions of opinion stated herein are subject to change, and neither the delivery of this Official Statement nor any sale made hereunder shall create, under any circumstances, any implication that there has been no change in the matters described herein since the date hereof. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2017 BONDS AT LEVELS ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. All summaries herein of documents and agreements are qualitied in their entirety by reference to such documents and agreements, and all summaries herein of the Series 2017 Bonds are qualified in their entirety by reference to the form thereof included in the aforesaid documents and agreements. NO REGISTRATION STATEMENT RELATING TO THE SERIES 2017 BONDS HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION') OR WITH ANY STATE SECURITIES COMMISSION. IN MAKING ANY INVESTMENT DECISION,INVESTORS MUST RELY ON THEIR OWN EXAMINATIONS OF THE COUNTY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SERIES 2017 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. THE FOREGOING AUTHORITIES FIAVE NOT PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. THIS OFFICIAL STATEMENT DOES NOT CONSTITUTE A CONTRACT BETWEEN THE COUNTY OR THE UNDERWRITERS AND ANY ONE OR MORE OF THE OWNERS OF THE SERIES 2017 BONDS. References to website addresses presented in this Official Statement are for informational purposes only and may be in the form of a hyperlink solely for the reader's convenience. Unless specified otherwise, such websites and the information or links contained therein are not incorporated ilto, and are not part of, this Official Statement. TABLE OF CONTENTS Contents Page Authority for and Purpose of Issuance .............1 DESCRIPTION OF THE SERIES 2017 BONDS ......,..,.....2 Book-Entry Only System ...............3 Optional Redemption ....................5 Mandatory Redemption ................5 Selection of Series 2017 Bonds to be Redeemed................. ..........................6 Notice of Redemption................. .........................6 Redemption of Portions of Series 2017 Bonds. .......................7 Payment of Redeemed Series 2017 Bonds.......... .....................7 Interchangeability, Negotiability and Transfer....... ...............7 State Sales Tax Revenues.................... .................9 Covenant To Budget And Appropriate.............. ...................12 Fuads and Accounts .................. ........................72 Issuance of Other Obligations. ..........................14 ESTIMATED SOURCES AND USES OF FUNDS .......,77 DESCRIPTION OF NON-AD VALOREM REVENUES................. .........................19 Intergovemmental Revenues.................. ..........23 Frandrise Fee Revenues.................... .................27 Miscellaneous Non-Ad Valorem Revenue...... ......................29 Tourist Development Tax Revenues.................. ....................29 Historical Receipt of Non-Ad Valorem Revenues.... ...........32 Debt of County Secured by Non-Ad Valorem Revenues .........................33 INVESTMENT CONSIDERATIONS .......35 GENERAL INFORMATION REGARDING ST. LUCIE COUNTY .......................36 County Govemment.................... ......................36 Management Discussion .............37 LIABILITIES OF THE COUNTY ....,.........42 Other Post Employment Benefits..... ................42 DISCLOSURE REQUIRED BY FLORIDA BLUE SKY REGULATIONS ...............48 Opinion of Bond Counsel....... ...........................43 L:rtemal Revenue Code of 7986.............. ...........M Collateral Tax Consequences............ ................M INDEPENDENT ACCOUNTANTS..... ,,,....,..................46 ENFORCEABILITY OF REMEDIES................. .,,.........,.47 ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT................ ..........................48 AUTHORZATION OF OFFICIAL STATEMENT................ .............49 APPENDX A: General Information Conceming the County APPENDIX B: Independent Auditors'Report of the County APPENDX C: Form of the Resolution APPENDIX D: Form of Bond Counsel Opinion APPENDX E: Form of Continuing Disclosure Certificate OFFICIAL STATEMENT relating to $46,955,000 ST. TUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE BONDS, SERIES 2017 INTRODUCTION General This Official Statemenf including the cover page, inside cover page and the Appendices hereto, is fumished with respect to the sale of the $46,865,000 Non-Ad Valorem Revenue Bonds, Series 2017 (the "Series 2017 Bonds") issued by St. Lucie County, Florida (the "County"). This introduction is not, and is not intended to be, a summary of this Official Statement. It is onty a brief description of and guide to, and is qualified by, more complete and detailed inJormation contained in the entire Official Statement, including the cover page, inside cover page and Appendices hereto, and the documents summartzed or described herein. A ful review should be made of the entire Officia] Statement. The offering of the Series 2017 Bonds is made only by means of this Official Statement and is subject in all respects to the information contained herein. For a complete description of the terms and conditions of the Series 2017 Bonds, reference is made to "APPENDIX C - Form of the Resolution" attached hereto. Unless otherwise indicated, capitalized terms used in this Official Statement shall have the same meaning established in "APPENDX C - Form of the Resolution" attached hereto. Authority for and Purpose of Issuance The Series 2017 Bonds are being issued pursuant to the authority and in compliance with the Constitution of the State of Florida, Chapter 125, Florida Statutes, Section 288.77637, Florida Statutes and other applicable provisions of law, and pursuant to Resolution No. 17-110 adopted by the Board of County Commissioners of the County (the "Board") on May 76, 2077, as amended and supplemented from time to time (the "Resolution"). The Series 2017 Bonds are being issued to provide funds to (i) finance the cost of the Project and (ii) pay costs associated with the issuance of the Series 2017 Bonds. See "THE PROJECT" herein for a description of the Project. Security for the Bonds The Series 2017 Bonds will be payable from and secured by (i) Program Revenues (as defined herein) and amounts on deposit in the funds and accounts established in the Resolution ("the Pledged Funds"), and (ii) a covenart to budget and appropriate legally available non-ad valorem revenues sufficient to pay debt service on the Series 2017 Bonds. The Program Revenues will be received by the County for a 20 year period. The Series 2017 Bonds will mature after such 20 year period. See "SECURITY FOR BONDS" herein. Other Inforrration This Official Statement speaks only as of its date, and the information contained herein is subject to change. Copies of the Resolution and other documents and information are available, upon request and upon payment to the County of a charge for copying mailing and handling, from the County Administrator, 2300 Virginia Avenue, Fort Pierce, Florida 34982. For a complete description of the terms and conditions of the Series 2077 Bonds, reference is made to the Resolution, the form of which is included in "APPENDIX C - Form of the Resolution" attached hereto. The description of the Resolution, the Series 2017 Bonds and information from reports contained herein do not purport to be comprehensive or definitive. THE PROJECT The proceeds of the Series 2017 Bonds will be used to acquire and construct improvements to the St. Lucie County Sports Complex (the "Sports Complex") owned by the County (the "Project"). Such improvements include, but are not limited to, a new full-size practice field with artificial turf, new specialty training fields, upgraded batting cages, upgraded Minor League clubhouse facilities, expanded outfield walkway, expanded and upgraded vertical circulatiory new concession stands and restrooms, renovated Home and Visiting Team clubhouses, renovated support facilities, renovated fan and player walkways, signage, graphics, landscaping, youth baseball and softball playing fields, asphalt parking resurfacing, roof replacement/repair, washer/dryer replacements, seat replacements, HVAC and ice machine and cooler replacements. The Sports Complex is located 1/zrnie east of I-95 in the City of Port St. Lucie, Florida. The Sports Complex was completed in 1987 and subsequently renovated in 2003. It has a seating capacity of 7,347 seats and has been the spring training facility for the New York Mets since 1988. DESCRIPTION OF THE SERIES 2017BONDS General The Series 2017 Bonds shall be dated the date of their delivery, shall be numbered consecutively from R-1 upward and shall be issued in the denominations of $5,000 or integral multiples thereof. The Series 2017 Bonds will mature on the dates and will bear interest at the rates set forth on the inside cover page of this Official Statement. Interest on the Series 2017 Bonds shall be payable semi-annually on April 1 and October 1 in each year corunencing October 7,2077 and is payable by che& or draft of U.S. Bank National Associatiory Jacksonville, Florida as initial registrar and paying agent (the "Registrar" and the "Paying Agent"). The principal of, or Redemption Price, if applicable, on the Series 2017 Bonds are payable upon presentation and surrender of the Series 2017 Bonds at the office of the Paying Agent and Registrar for the Series 2017 Bonds. Interest payable on any Series 2017 Bond on any Lrterest Date will be paid by che& or draft of the Paying Agent to the Holder in whose name such Series 2017 Bond shall be registered at the dose of business on the date which shall be the fifteenth day (whether or not a business day) of the calendar month next preceding such Lrterest Date, or at the prior written request and expense of such Holder, by bank wire transfer for the account of such Holder. AII payments of principal of or Redemption Price, if applicable, and interest on the Series 2017 Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Book-Entry Only System THE FOLLOWING INFORMATION CONCERNING DTC AND DTC'S BOOK-ENTRY ONLY SYSTEM HAS BEEN OBTAINED FROM DTC, AND NEITHER THE COUNTY NOR THE UNDERWRITERS TAKE ANY RESPONSIBILITY FOR THE ACCURACY THEREOF. DTC will act as securities depository for the Series 2017 Bonds. The Series 2017 Bonds will be registered in the name of Cede & Co. (DTC's partrership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Series 2017 Bond will be used for each maturity of the Series 2017 Bonds, in the aggregate amount of such maturity, and will be deposited withDTC. SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE SERIES 2017 BONDS, AS NOMINEE OF DTC, CERTAIN REFERENCES IN THIS OFFICIAL STATEMENT TO THE SERIES 2017 BONDHOLDERS OR REGISTERED OWNERS OF THE SERIES 2017 BONDS WILL MEAN CEDE & CO. AND WILL NOT MEAN THE BENEFICIAL OWNERS OF THE SERIES 2017 BONDS. THE DESCRIPTION WHICH FOLLOWS OF THE PROCEDURES AND RECORD KEEPING WITH RESPECT TO BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2017 BONDS, PAYMENT OF INTEREST AND PRINCIPAL ON THE SERIES 2017 BONDS TO DIRECT PARTICIPANTS (AS HEREINAFTER DEFINED) OR BENEFICIAL OWNERS OF THE SERIES 2017 BONDS, CONFIRMATION AND TRANSFER OF BENEFICIAL OWNERSHIP INTERESTS IN THE SERIES 2017 BONDS, AND OTHER RELATED TRANSACTIONS BY AND BETWEEN DTC, THE DIRECT PARTICIPANTS AND BENEFICIAL OWNERS OF THE SERIES 2017 BONDS IS BASED SOLELY ON INFORMATION FURNISHED BY DTC. ACCORDINGLY, NEITHER THE COUNTY NOR THE UNDERWRITERS MAKE NOR CAN MAKE ANY REPRESENTATIONS CONCERNING THESE MATTERS. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the mearLing of the New York BankingLaw, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants (the "Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, tluough electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers, dealers, banks, trust companies and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). DTC has Standard & Poor's highest rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exdrange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Series 2017 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for such Series 2017 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 2017 Bond (the "Beneficial Owner") is in tum to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Series 2017 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of the Beneficial Owners. Beneficial Owners will not receive cerfficates representing their ownership interests in the Series 2077 Bonds, except in the event that use of the book-entry system for the Series 2017 Bonds is discontinued. To facilitate subsequent transfers, all Series 2017 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other nalne as may be requested by an authorized representative of DTC. The deposit of Series 2017 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Series 2017 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2017 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping an account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements made among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Series 2017 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2017 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2077 Bond documents. For example, Beneficial Owners of the Series 2017 Bonds may wish to ascertain that the nominee holding the Series 2017 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the altemative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than a1l of the Series 2017 Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such Series 2017 Bonds to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series 2017 Bonds udess authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the County as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2017 Bonds are credited on *re record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Series 2017 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the County or the Paying Agent and Registrar on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be govemed by standing instructions and customary practiceg as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DT9 the Paying Agent or the County, subject to any statutory and regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the County and/or the Paying Agent for the Series 2017 Bonds. Disbursement of such payments to Direct Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial Owners is the responsibility of the Direct and Lrdirect Participants. DTC may discontinue providing its services as securities depository with respect to the Series 2017 Bonds at any time by glving reasonable notice to the County. Under such circumstances, in the event that a successor securities depository is not obtained, Series 2077 Bond certificates are required to be printed and delivered. The County may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). Lr that event, Series 2017 Bond certificates will be printed and delivered and be subject to transfer and registration as provided in the Resolution and as described below under the subheading " - Interchangeability, Negotiability and Transfer. " Optional Redemption The Series 2017 Bonds maturing on or before October 1, 2027 are not zubject to optional redemption prior to maturity. The Series 2017 Bonds maturing on and after October 7,2028 are subject to redemption at the option of the County from any legally available revenues in whole or in part, at any time, on or after October 7,2027 in such order of maturities as may be determined by the County (less than all of a single maturity to be selected by lot) at a Redemption Price of 700% of the principal amount to be redeemed, plus accrued interest to the date set for redemption. Mandatory Redemption The Series 2017 Bonds maturing on October 7, 2042, are subject to mandatory sinking fund redemption, prior to maturity in part, by lot on October 7, 2038 and on each October 1 thereafter, at a redemption price equal to the principal amount of such Series 2017 Bonds or portions thereof to be redeemed, plus interest accrued thereon to the date of redemptiory on October 1 in the following years and in the following amounts: Year 2038 2039 2040 2041 2042* Amount $1,925,000 2,020,000 2,120,000 2,225,000 2,340.000 *Maturity. Selection of Series 2017 Bonds to be Redeemed The Series 20\7 Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. The County shall, at least 45 days prior to the redemption date (ulless a shorter time period shall be satisfactory to the Registrar), notify the Registrar of such redemption date and of the principal amount of Series 2017 Bonds to be redeemed. For purposes of any redemption of less than all of the Outstanding Series 2017 Bonds of a single maturity, the particular Series 2077 Bonds or portions of Series 2017 Bonds to be redeemed shall be selected not more than 45 days and not less than 35 days prior to the redemption date by the Registrar from the Outstanding Series 2017 Bonds of the maturity or maturities designated by the County by such method as the Registrar shall deem fair and appropriate and which may provide for the selection for redemption of Series 2017 Bonds or portions of Series 2017 Bonds in principal amounts of $5,000 and integral multiples thereof. Notice of Redemption Notice of such redemptiory which shall specify the Series 2077 Bond or Series 2017 Bonds (or portions thereof) to be redeemed and the date and place for redemption, shall be given by the Registrar on behalf of the Counf, ard (A) shall be filed with the Papng Agent of such Series 2017 Bonds, and (B) shall be mailed first class, postage prepaid, not less than 30 days nor more than 45 days prior to the redemption date to all Holders of Series 2017 Bonds to be redeemed at their addresses as they appear on the registration books kept by the Registrar as of the date of mailing of such notice. In addition to the making of the notice described above, the Registrar shall give additional notice of the redemption of Series 2017 Bonds in accordance with any regulation or release of the Municipal Securities Rulemaking Board or goverrrrnental agency or body from time to time applicable to such Series 2017 Bonds. Failure to mail such notice, or any defect thereirl shall not affect the proceedings for redemption of Series 2017 Bonds as to which no such failure or defect has occurred. Such notice shall also be mailed to the Insurer, if any, of such redeemed Series 2017 Bonds. Failure of any Holder to receive any notice mailed as provided in the Resolution shall not affect the proceedings for redemption of such Holder's Series 2017 Bonds. Each notice of redemption shall state: (1) the CUSIP numbers and any other distinguishing number or letter of all Series 2017 Bonds being redeemed, (2) the original issue date of such Series 2017 Bonds, (3) the maturity date and rate of interest borne by each Series 2017 Bond being redeemed (4) the redemption date, (5) the Redemption Price, (5) the date on which such notice is mailed, (7) il less than all Outstanding Series 2017 Bonds are to be redeemed, the certificate number (and, in the case of a partial redemption of any Series 2017 Bond" the principal amount) of each Series 2017 Bond to be redeemed, (8) that on such redemption date there shall become due and payable upon each Series 2017 Bond to be redeemed the Redemption Price thereof, or the Redemption Price of the specffied portions of the principal thereof in the case of Series 2017 Bonds to be redeemed in part only, together with interest accrued thereon to the redemption date, and that from and after such date interest thereon shall cease to accrue and be payable, (9) that the Series 2017 Bonds to be redeemed, whether as a whole or in part, are to be surrendered for payment of the Redemption Price at the designated office of the Registrar at an address specified, (10) the name and telephone number of a person designated by the Registrar to be responsible for such redemption, (11) unless sufficient funds have been set aside by the County for such purpose prior to the mailing of the notice of redemptioru that such redemption is conditioned upon the deposit of sufficient funds for such purpose on or prior to the date set for redemptiory and (12) any other conditions that must be satisfied prior to such redemption. The County may provide that a redemption will be contingent upon the occurrence of certain conditions and that if such conditions do not occur the notice of redemption will be rescinded, provided notice of rescission shall be mailed in the manner described in the Resolution to all affected Bondholders not later than three business days prior to the date of redemption. Redemption of Portions of Series 2017 Bonds Any Series 2077 Bond which is to be redeemed only in part shall be surrendered at any place of payment specified in the notice of redemption (with due endorsement by, or written instrument of transfer in form satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing) and the County shall execute and the Registrar shall authenticate and deliver to the Holder of such Series 2017 Bond, without service charge, a new Series 2017 Bond or Series 2017 Bonds, of any authorized denominatiory as requested by such Holder in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Series 2017 Bonds so surrendered. Payment of Redeemed Series 20L7 Bonds Notice of redemption having been given substantially as aforesaid the Series 2017 Bonds or portions of Series 2017 Bonds to be redeemed sha[ on the redemption date, become due and payable at the Redemption Price therein specffied, and from and after such date (unless the County shall default in the payment of the Redemption Price) such Series 2017 Bonds or portions of Series 2017 Bonds shall cease to bear interest. Upon surrender of such Series 2017 Bonds for redemption in accordance with said notice, such Series 2017 Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate Redemption Price, plus accrued interest. All Series 2017 Bonds which have been redeemed shall be cancelled and destroyed by the Registrar and shall not be reissued. Inte rch an ge ability, N e goti ab ility an d Tra nsf er The folloraing proaisions shall only be applicable if DTC's book-entry only system of registration is discontinued. Series 2017 Bonds, upon surrender thereof at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or his attomey duly authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of registered Series 2017 Bonds of the same maturity of any other authorized denominations. The Series 2017 Bonds issued under the Resolution shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the State of Florida, subject to the provisions for registration and transfer contained in the Resolution and in the Series 2017 Bonds. So long as any of the Series 2017 Bonds shall remain Outstanding, the County shall maintain and keep, at the office of the Registrar, books for the registration and transfer of the Series 2017 Bonds. Each Series 2017 Bond shall be transferable only upon the books of the County, at the office of the Registrar, under such reasonable regulations as the Cotmty may prescribe, by the Holder thereof in person or by his attorney duly authorized in writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or his duly authorized attomey. Upon the transfer of any such Series 2077 Bond, the County shall issue, and cause to be authenticated, in the name of the transferee a new Series 2017 Bond or Series 2017 Bonds of the same aggregate principal amount and maturity as the surrendered Series 2017 Bond. The County, the Registrar and any Paying Agent or fiduciary of the County may deem and treat the Person in whose name any Outstanding Series 2017 Bond shall be registered upon the books of the County as the absolute owrrer of such Series 2017 Bond, whether such Series 2017 Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable, and interest on such Series 2017 Bond and for all other purposes, and all such payments so made to any such Holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Series 2017 Bond to the extent of the sum or sums so paid and neither the County nor the Registrar nor any Payrng Agent or other fiduciary of the County shall be affected by *y notice to the contrary. The Registrar, in any case where it is not also the Paying Agent in respect to any Series 2017 Bonds, forthwith (A) following the fifteenth day prior to an Interest Date for the Series 2017 Bonds; (B) following the fifteenth day next preceding the date of first mailing of notice of redemption of any Series 2017 Bonds; and (C) at any other time as reasonably requested by the Paying Agent of such Series 2017 Bonds, shall certify and fumish to such Payng Agent the names, addresses and holdings of Bondholders and any other relevant information reflected in the registration books. A.y Payrng Agent of any fully registered Series 2017 Bond shall effect payment of interest on such Series 2017 Bonds by mailing a che& to the Holder entitled thereto or may, in Lieu thereof, upon the request and expense of such Holder, transmit such payment by bank wire transfer for the account of sudr Holder. In all cases in which the privilege of exchanging Series 2017 Bonds or transferring Series 2017 Bonds is exercised, the County shall execute and deliver Series 2017 Bonds and the Registrar shall authenticate such Series 2017 Bonds in accordance with the provisions of the Resolution. Execution of Series 2017 Bonds by the Chairman and Clerk for purposes of exchanging, replacing or transferring Series 2017 Bonds may occur at the time of the original delivery of the Series 2017 Bonds. A11 Series 2017 Bonds surrendered i. aoy such exchanges or transfers shall be held by the Registrar in saJekeeping until directed by the County to be cancelled by the Registrar. For every such exchange or transfer of Series 2077 Bonds, the County or the Registrar may make a charge sufficient to reimburse it for any tax, fee, expense or other govemmental charge required to be paid with respect to such exchange or transfer. The County and the Registrar shall not be obligated to make any such exchange or transfer of Series 2017 Bonds during the 15 days next preceding an hrterest Date on the Series 2017 Bonds, or, in the case of any proposed redemption of Series 2017 Bonds, then, for the Series 2017 Bonds subject to redemption, during the 15 days next preceding the date of the first mailing of notice of such redemption and continuing until such redemption date. SECURITY FOR THE BONDS General The Series 2017 Bonds shall be payable from and secured by (i) the Pledged Funds, and (ii) a covenant to budget and appropriate from total revenues of the County derived from any source whatsoever, other than revenues generated from ad valorem taxation on real or personal property, and which are legally available to make the payments required in the Resolution (the "Non Ad Valorem Revenues"). THE SERIES 2017 BONDS SHALL NOT BE OR CONSTITUTE GENERAL OBLIGATIONS OR INDEBTEDNESS OF THE COUNTY AS ''BONDS'' WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY PROVISION, BUT SHALL BE SPECIAL OBLIGATIONS OF THE COUNTY, PAYABLE SOLELY FROM THE PLEDGED FUNDS AND FROM AMOUNTS BUDGETED AND APPROPRIATED BY THE COUNTY FROM NON-AD VALOREM REVENUES IN ACCORDANCE WITH THE RESOLUTION. NO HOLDER OF ANY SERIES 2017 BOND SHALL EVER HAVE THE RIGHT TO COMPEL THE EXERCISE OF ANY AD VALOREM TAXING POWER TO PAY SUCH SERIES 2017 BOND, OR BE ENTITLED TO PAYMENT OF SUCH SERIES 2017 BOND FROM ANY MONEYS OF THE COUNTY EXCEPT FROM THE PLEDGED FUNDS AND THE NON-AD VALOREM REVENUES IN THE MANNER AND TO THE EXTENT PROVIDED IN THE RESOLUTION. Pledged Funds Pledged Funds are defined to mean (i) the Program Revenues, and (ii) until applied for the purposes described in the Resolution, the amounts on deposit in the funds and accounts established thereunder, other than the Rebate Fund. The Program Revenues are defined in the Resolution as the amounts received by the County pursuant to the terms of the Spring Training Program Agreement (as defined below) and are comprised of moneys from the sales tax revenues collected by the State of Florida (the "State") under Section 212.20(6)(d)6.e, Florida Statutes and per Section 288.7763L, Florida Statutes, and directed to certified applicants to be used (i) for the public purpose of constructing or renovati.g a facility for a spring training franchise or (ii) to pay or pledge for the payment of debt service on, or to fund debt service reserve fundE arbitrage rebate obligations or other amounts payable with respect thereto, bonds issued for the construction or renovation of such facility or for the reimbursement of such costs or the refinancing of bond issued for such purpose, upon the entering into an agreement with such certified applicant. See "Sales Tax Revenues" below for a description of the State sales tax revenues. The County was certified by the Florida Department of Economic Opportunity ("DEO") on March 77,2017 and entered into Spring Training Program Agreement Number SB77-007 between DEO and the County on March 28,2077 (the "Spring Training Program Agreement"). The Spring Training Program Agreement provides for an amount of $20,000,000 to be distributed to the County in accordance with the provisions therein for a period of not more than 20 years. The Series 2017 Bonds will mature after such 20 year period. Pursuant to the Spring Training Program Agreement, once the Series 2017 Bonds are issued, the County cannot be decertified. State Sales Tax Revenues The State levies and collects a sales tax or1 among other things, the sales price of each item or article of tangible personal property sold at retail in the Statg subject to certain exceptions and dealer allowances. Section 212.20, Florida Statutes, provides for the distribution of sales tax revenues collected by the State after providing for transfers to the State General Fund. The general rate of sales tax in the State is currently 6%. Unless a transaction is specifically exempt, the State sales and use tax is applicable to sales of tangible personal property at retail in the State including the business of making mail order sales, the rental or furnishing of things or services taxable under Chapter 272, Florida Statutes, as amended, the storage for use or consumption in the State of any item or article of tangible personal property, and the lease or rental of such property within the State. The Florida Department of Revenue ("FDOR") is required to pay over to the Chief Financial Officer of the State all funds received and collected by and under Chapter 272, Floida Statutes, as amended, and Sections 202.18(1)(b) and (2)(b), Florida Statutes, as amended (certain communications services taxes), to be credited to the account of the State General Revenue Fund. Set forth below is the distribution by the State of such proceeds (after reallocation of convention development taxes and discretionary sales surtaxes to their respective clearing trust funds) pursuant to Section 272.20(6), Florida Statutes, as amended: 1. State General Revenue Fund. In any fiscal year, the greater of $500 million, minus an amount equal to 4.6% of the proceeds of the taxes collected pursuant to Chapter 201, Florida Statutes, as amended (documentary taxes), or 5.2Y" of all other taxes and fees imposed pursuant to Chapter 272, Florida Statutes, as amended, or remitted pursuant to Sections 202.18(1Xb) and (2)(b), Florida Statutes, as amended, shall be deposited in monthly installments into the State General Revenue Fund. 2. State Local Govemment HaU-Cent Sales Tax Clearing Trust Fund. After the distributions in (1) above, 8.974o/o of the amount remitted by a sales tax dealer-located within a participating county pursuant to Section 278.67, Florida Statutes, as amended, shall be transferred into the State Local Govemment Half-Cent Sales Tax Clearing Trust Fund. Prior to luly 7, 2003, 9.6530/0 was transferred pursuant to Section 278.67, Florida Statutes. Beginning ]uly 1, 2003, the amount to be transferred was reduced by 0.1 percent and the FDOR shall distribute this amount to the Public Employees Relations Comrnission Trust Fund less $5,000 each month, which is added to the amount calculated in (3) below and distributed accordingly. 3. State Local Govemment Half-Cent Sales Tax Clearing Trust Fund. After the distributions in (1) and (2) above, 0.0966% shall be transferred to the State Local Government HaU-Cent Sales Tax Clearing Trust Fund and distributed pursuant to Section 278.65, Florida Statutes, as amended. 4. Revenue Sharing Trust Fund for Counties. After the distribution in (1), (2) and (3) above, and on parity with the transfer described in paragraph 5 which follows, 2.0870% of the available proceeds shall be transferred monthly to the Revenue Sharing Trust Fund for Counties as set forth in Section 218.275, Florida Statutes, as amended. 5. Revenue Sharing Trust Fund for Municipalities. After the distribution in (1), (2) and (3) above, and on parity with the transfer described in paragraph 4 immediately preceding,7.3653% of the available proceeds shall be transferred monthly to the Revenue Sharing Trust Fund for Municipalities as set forth in Section 278.275, Florida Statues, as amended. If the total revenue to be distributed pursuant to this paragraph is at least as great as the amount due from the Revenue Sharing Trust Fund for Municipalities and the former Municipal Financing Assistance Trust Fund in State Fiscal Year 1,999-2000, no municipality shall receive less than the amount due from the Revenue Sharing Trust Fund for Municipalities and the former Municipal Financial Assistance Trust Fund in State Fiscal Year 7999-2000. If the total proceeds to be distributed are less than the amount received in combination from the Revenue Sharing Trust Fund for Municipalities and the former Municipal 10 Financial Assistance Trust Fund in State Fiscal Year 1999-2000, each municipality shall receive an amount proportionate to the amount it was due in State Fiscal Year 7999-2000. 6. Distribution in Lieu of Funds Previously Distributed Pursuant to the Pari-mutuel Wagering Trust Fund. Of the remaining proceeds, $29,915,500 shall be divided equally among the counties; provided however, pa;..rnents may be made directly to the school boards, special districts or a municipality as provided by * existing local or special law. This dishibution is in lieu of funds previously distributed pursuant to the Pari-mutuel Wagering Trust Fund. 7. Professional Sports. Of the remaining proceeds: (a) $766,667 shall be distributed monthly to each applicant that has been certified as a "facility for a new or retained professional sports franchise" pursuant to Section 288.1162, Florida Statutes, as amended; and (b) up to 941.,667 shall be distributed monthly to each applicant certified for a facility for a spring training franchise pursuant to Section 288.1162, Florida Statutes, as amended; however, not more than $416,670 may be distributed monthly to all such certified applicants for spring training facilities. Distributions begin 60 days after a facility is certified and continue for not more than 30 years, except as otherwise provided in Section 288.77621, Florida Statutes. A certified applicant identified in this paragaph (7) may not receive more in distributions than expended by the applicant for the public purposes provided for in Section 288.7762(5) or Section 288.77627(3), Florida Statutes. 8. Golf Hall of Fame. Of the remaining proceeds $166,667 shatl be distributed monthly for up to 300 months to an applicant which is certified as the "professional golf hall of fame" pursuant to Section 288.1168, Florida Statutes, as amended, and is open to the public. 9. Intemational Game Fish Association. Of the remaining proceeds, $83,333 distributed monthly for up to 168 months to an applicant which is certified as the Intemational Game Fish Association World Center facility pursuant to Section 288.7169, Florida Statutes, as amended, and is open to the public. This distribution is subject to reduction pursuant to Section 288.7769, Florida Statutes, as amended. 10. Additional Spring Training Franchise Distributions. Of the remaining proceeds, up to $83,333 shall be distributed monthly to each applicant certified for a facility used by a single spring training franchise, or up to $166,667 monthly to each certified applicant for a facility used by more than one spring training franchise. Monthly distributions begin 60 days after such certification, and continue for not more than 20 years to each certified applicant for a facility to be used by a single spring training franchise or not more than 25 years to each certified applicant for a facility to be used by more than one spring training franchise. A certified applicant may not receive more in distributions than expended by the applicant for the public purposes provided in Section 288. 11631 (3), Florida Statutes. 11. Additional Sports Venues. Of the remaining proceeds, up to $13 million per year (up to $7 million for State Fiscal Year 2015) may be distributed to an applicant that has been approved by the Florida Legislature and certified by the DEO for the purpose of constructing, reconstructing, renovating, or improving facilities primarily used to host games or events held by a professional sports franchise and certain other sporting events, all as provided pursuant to Section 288.77625, Florida Statutes. Such funds shall be distributed on an equal monthly basis. 11 72. State Transportation Trust Fund. Of the remaining proceeds, $15,333 shall be distributed monthly to the State Transportation Trust Fund. 13. State General Revenue Fund. All other proceeds shall remain with the State General Revenue Fund. Only the "Additional Spring Training Franchise Distributions" described in paragraph 10 above with respect to the facility for the County constitute Program Revenues and are pledged for the security of the Series 2017 Bonds. Covenant To Budget And Appropriate Pursuant to the Resolution, the County covenarts and agrees to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient to (A) pay principal of and interest on the Series 2017 Bonds when due, to the extent amounts deposited into the Debt Service Fund pursuant to the Resolution are insufficient ttrerefor, and (B) pay all required deposits to the Rebate Fund pursuant to the Resolution. Such covenant and agreement on the part of the County to budget and appropriate such amounts of Non-Ad Valorem Revenues shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the County, the County does not covenant to maintain any services or programs, now provided or maintained by the County, which generate Non-Ad Valorem Revenues. Such covenant to budget and appropriate does not create any lien upon or pledge of such Non- Ad Valorem Revenues, nor does it preclude the County from pledging in the future its Non-Ad Valorem Revenues, nor does it require the County to levy and collect any particular Non-Ad Valorem Revenues, nor does it give the Bondholders a prior claim on the Non-Ad Valorem Revenues as opposed to claims of general creditors of the County. Sud:r covenant to appropriate Non-Ad Valorem Revenues is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Revenues heretofore or hereafter entered into (induding the payment of debt service on bonds and other debt instruments). However, the covenant to budget and appropriate for the purposes and in the manner stated in the Resolution shall have the effect of making available for the payment of the Series 2017 Bonds, in the manner described in the Resolution, Non-Ad Valorem Revenues and placing on the County a positive duty to appropriate and budget, by amendment, if necessary, amounts sufficient to meet its obligations under the Resolution; subject, however, in all respects to the payment of essential expenditures for general govemment and safety as shown in the County's audited financial statements. See "DESCRIPTION OF NON-AD VALOREM REVENUES" herein for a description of the various Non- Ad Valorem Revenues of the County. Funds and Accounts The County has covenanted and aBrees to establish separate ftrnds to be known as the "St. Lucie County Non-Ad Valorem Revenue Bond Revenue Fund", the "St. Lucie County Non-Ad Valorem Revenue Bond Debt Service Fund" and the "St. Lucie County Non-Ad Valorem Revenue Bond Rebate Fund." Moneys in the aforementioned funds, other than the Rebate Fund, until applied in accordance with the provisions of the Resolution, shall be subject to a prior lien and charge in favor of the Holders of 72 the Series 2017 Bonds for the security of such Holders. There has been no reserve account established for the Series 2017 Bonds. The County may at any time and from time to time appoint one or more depositories to hold, for the benefit of the Bondholders, any one or more of the funds and accounts established by the Resolution. Such depository or depositories shall perform at the direction of the County, the duties of the County in depositing, transferring and disbursing moneys to and from each of such funds and accounts as set forth in the Resolutiory and all records of such depositary in performing such duties shall be open at all reasonable times to inspection by the County and its agent and employees. Any such depository shall be either the Florida State Board of Administration or a bank or trust company duly authorized to exercise corporate trust powers and subject to examination by federal or state authority, of good standing, and eligible under the laws of the State to receive funds of the County. Flow of Funds (A) The County shall promptly deposit, within two business days after receipt thereof, the Program Revenues into the Revenue Fund. The moneys in the Revenue Fund shall be deposited or credited on or before the last day of each month, commencing in the month immediately following delivery of any of the Series 2017 Bonds to the purchasers thereof, or such later date as hereinafter provided, in the following manner and in the following order of priority: (1) Debt Service Fund. The County shall deposit or credit to the Debt Service Fund from the Revenue Fund the sum which, together with the balance on deposit in said Debt Service Fund (whidr may include any other lawfully available funds transferred by the County into such Fund), shall equal the interest on all Series 2017 Bonds outstanding accrued and unpaid and to accrue to the end of the then orrent calendar month. The County shall also deposit or credit to the Debt Service Fund the sum which, together with the balance in said Fund (which may include any other lawfully available funds transferred by the County into such Fund), shall equal the principal amourts on all Series 2017 Bonds Outstanding due and unpaid and that portion of the principal next due which would have accrued on such Series 2017 Bonds during the then current calendar month if such principal amounts were deemed to accrue monthly (assuming that a year consists of twelve (12) equivalent calendar monttrs having 30 days each) in equal amounts from the next preceding principal payment due date, or, if there be no such preceding principal payment due date from a date one year preceding the due date of such principal amount. Commencing in the month which is one year prior to the first Amortization Lrstallment there shall also be deposited or credited to the Debt Service Fund the sum which, together with the balance in such Fund, shall equal the Amortization Installments on all Term Bonds Outstanding due and unpaid and that portion of the Amortization Installments of all Term Bonds Outstanding next due which would have accrued on such Term Bonds during the then current calendar month if such Amortization lrstallments were deemed to accrue monthly (assuming that a year consists of twelve (12) equivalent calendar months having 30 days each) in equal amounts from the next precedjng Amortization Lrstallment due date, or, if there is no such preceding Amortization Installment due date, from a date one year preceding the due date of such Amortization Installment. Moneys in the Debt Service Fund shall be used to pay interest, principal, Amortization hrstallments and redemption premium, if any, on all Outstanding Series 2017 Bonds, on a pro- rata basit as and when the same become due, whether by redemption or otherwise, and for no other purpose. No further deposit need be made to the Debt Service Fund when the moneys 13 therein are equal to the interest and principal (including Amortization L:rstallments, if any) coming due on the Outstanding Series 2017 Bonds on the next two succeeding Lrterest Pa)..rnent Dates. Amounts accumulated in the Debt Service Fund with respect to any Amortization h:rstallment (together with amounts accumulated in the Debt Service Fund with respect to interest, rI any, on ttre Term Bonds for which such Amortization Lrstallment was established) may be applied by the County, on or prior to the sixtieth (60th) day preceding the due date of such Amortization Installment, (a) to the purchase of Term Bonds of the maturity for which such Amortization Installment was established, or (b) to *re redemption at the applicable Redemption Prices of such Term Bonds, if then redeemable by their terms. The applicable Redemption Price (or principal amount of maturing Term Bonds) of any Term Bonds so purchased or redeemed shall be deemed to constitute part of the Debt Service Fund until such Amortization Installment date, for the purposes of calculating the amount of such Account. As soon as practicable after the sixtieth (60th) day preceding the due date of any such Amortization Lrstallment, the County shall proceed to call for redemption on such due date, by causing notice to be given as provided in the Resolution, Term Bonds of the maturity for which such Amortization Lrstallment was established (except in the case of Term Bonds maturing on an Amortization Installment date) in such amount as shall be necessary to complete the retirement of the unsatisfied balance of such Amortization L:rstallment. The County shall pay out of the Debt Service Fund to the Paying Agent, on or before the day preceding such redemption date (or maturity date), the amount required for the redemption (or for the payment of such Term Bonds then maturing), and such amourt shall be applied by the Paying Agent to such redemption (or payment). All expenses in connection with the purchase or redemption of Term Bonds shall be paid by the County from the Revenue Fund. (2) Surplus Funds. The balance of any moneys remaining in the Revenue Fund, if any, after the payments and deposits required by paragraph (A)(1) above shall be retained therein and applied in the following month as provided in said paragraph (AXl). (B) The County, in its discretion, may use moneys in the Debt Service Fund to purchase or redeem Series 2017 Bonds coming due on the next principal payment date, provided such purchase or redemption does not adversely affect the County's ability to pay the principal or interest coming due on such principal payment date on the Series 2017 Bonds not so purchased or redeemed. (C) At least three (3) business days prior to the date established for payment of any principal of or Amortization Installment, if applicable, or interest on the Series 2017 Bonds, the County shall withdraw from the appropriate account of the Debt Service Fund sufficient moneys to pay such principal or Amortization Installment, if applicable, or interest and deposit such moneys with the Paying Agent. Issuance of Other Obligations [:r the Resolutiory the County has covenanted that except for the Series 2017 Bonds, the County will not (A) issue any additional obligations payable from the Pledged Funds, or (B) issue any additional obligations payable from the Non-Ad Valorem Revenues, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge against the Non-Ad Valorem Revenues, or any part thereof, except as set out below. l4 No additional indebtedness payable from or secured by Non-Ad Valorem Revenues shall be issued by the County unless the average of the annual Net Non-Ad Valorem Revenues Available For Debt Service for the prior two Fiscal Years equals at least 150% of the Maximum Annual Debt Service on all Debt payable from such Non-Ad Valorem Revenues. Lr the event any additional obligations are issued for the purpose of refunding any Debt then outstanding, the conditions of this section shall not apply, provided that the issuance of such additional obligations shall result in a reduction of the aggregate Debt Service on the applicabte Debt. "Adjusted Essential Expenditures" means essential expenditures for general govemment and public safety as shown in the County's audited financial statements less any revenues derived from ad valorem taxation on real and personal property that are legally available to pay for such expenditures. "Debt" means at any date (without duplication) all of the following to the extent that they are secured by or payable in whole or in part from any Non-Ad Valorem Revenues (A) all obligations of the County for borrowed money or evidenced by bonds, debentures, notes or other similar instruments; (B) all obligations of the County to pay the deferred purchase price of property or services, except trade accounts payable under normal trade terms and which arise in the ordinary course of business; (C) an obligations of the County as lessee under capitalized leases; and (D) all indebtedness of other Persons to the extent guaranteed by, or secured by, Non-Ad Valorem Revenues of the County; provided, however, that with respect to any obligation contemplated in (D) above, such obligation shall not be considered "Debt" for purposes of the Resolution unless the County has actually used Non-Ad Valorem Revenues to satisfy such obligation during the immediately preceding Fiscal Year or reasonably expects to use Non- Ad Valorem Revenues to satisfy such obligation in the current or immediately succeeding Fiscal Year. After an obligation is considered "Debt" as a result of the proviso set forth in the immediately preceding sentence, it shall continue to be considered "Debt" until the County has not used any Non-Ad Valorem Revenues to satisfy such obligation for two consecutive Fiscal Years. "Debt Service" means, at any time, the aggregate amount in the then applicable period of time of (1) interest required to be paid on the applicable Debt during such period of time, except to the extent that such interest is to be paid from proceeds of the Debt for such pulpose, (2) principal of outstanding Debt maturing in such period of time, and (3) the Amortization L:rstallments with respect to Outstanding Term Bonds or amortization payments with respect to other Debt maturing in such period of time. "Maximum Annual Debt Service" means *re maximum armual Debt Service on a consolidated basis of all Debt payable from Non-Ad Valorem Revenues then outstanding and the planned additional Debt to be issued for the then-current or any subsequent Fiscal Year. For purposes of the foregoing (a) if said Debt has 25Yo or more of the aggregate principal amount coming due in any one year, Debt Service shall be determined on the Debt during such period of time as if the principal of and interest on suctr Debt were being paid from the date of incurrence thereof in substantially equal annual amounts over a period of 25 years; and @) for the purpose of determining Debt Service as described above, the interest rate on variable rate Debt shall be deemed tobe 720o/" of the average of the SIFMA Index over a two year period of time ending on the date immediately prior to the sale of such additional obligation. "Net Non-Ad Valorem Revenues Available For Debt Service" mezrns the Non-Ad Valorem Revenues minus Adjusted Essential Expenditures. 15 "SIFMA Index" means the Securities Lrdustry and Financial Markets Association Municipal Swap Lrdex, or if that index is no longer published, a successor or similar index of short-term high-grade tax-exempt indebtedness. Investments The Construction Furd, the Revenue Fund and the Debt Service Fund shall be continuously secured in the manner by which the deposit of public funds are authorized to be secured by the laws of the State. Moneys on deposit in the Construction Fund, the Revenue Fund and the Debt Service Fund may be invested and reinvested in Authorized Investments maturing not later than the date on which the moneys therein will be needed for the purposes of such Fund. Any and all income received by the County from the investment of moneys in the Construction Fund, the Revenue Fund and the Debt Service Fund, shall be retained in such respective Fund. All investments shall be valued at the lower of market value (exclusive of accrued interest) and cost. Nothing contained in the Resolution shall prevent any Authorized Investments acquired as investments of or security for funds held under the Resolution from being issued or held in book-entry form on the books of the Department of the Treasury of the United States. Separate Accounts The moneys required to be accounted for in each of the foregoing funds established in the Resolution may be deposited in a single bank account, and funds allocated to the various funds established in the Resolution may be invested in a common investment poof provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit therein and such investments for the various purposes of zuch funds as provided in the Resolution. The designation and establishment of the various funds in and by the Resolution shall not be construed to require the establishment of any completely independent, self-balancing funds as such term is commonly defined and used in govemmental accor:nting, but rather is intended solely to constitute an earmarkirg of certain revenues for certain purposes and to establish certain priorities for application of such revenues as provided in the Resolution. [Remainder of page intentionally left blank] T6 ESTIMATED SOI.JRCES AND USES OF FUNDS The table that follows summarizes the estimated sources and uses of funds to be derived from the sale of the Series 2017 Bonds: SOURCES: Bond Proceeds: Par Amount Original Iszue Premium TOTAL SOURCES USES: Deposit to Construction Fund Cost of [ssu6n6s(1) TOTAL USES $46,865,000.00 8,459.46.00 $55,324,46.00 $55,000,000.00 324,M6.00 $55,324,M6.00 0) L:rcludes Underwriters' discount, financial advisory and legal fees and costs, and miscellaneous costs of issuance. [Remainder of page intentionally left blank] 17 DEBT SERVICE SCHEDULE The following table sets forth the debt service schedule for the Series 2017 Bonds. Bond Year Ending October L 2077 201.8 2079 2020 2021. 2022 2023 2024 2025 2026 2027 2028 2029 2030 2037 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041. 2042 TOTAL Principal $1,125,000 1,150,000 1,205,000 7,270,000 1,330,000 1,3g5,ooo '1,,465,000 1,540,000 1,615,000 1,700,000 7,7g5,ooo 1,870,000 1.,965,000 2,065,000 2,'1,70,000 2,275,000 2,390,000 2,510,000 2,635,000 2,765,000 L,g25,000 2,020,000 2,720,ooo 2,225,000 2.340.000 $46A6s!00 Interest $590,116,11 2,309,150.00 2,275,400.00 2,229,000.00 2,'1,68,750.00 2,105,250.00 2,038,750.00 1,,959,000.00 1,895,750.00 1,818,750.00 1,738,000.00 1,653,000.00 7,563,750.00 1.,470,250.00 7,372,000.00 7,268,750.00 1,160,250.00 1,046,500.00 927,000.00 801,500.00 669,750.00 531,500.00 435,250.00 334,250.00 228,250.00 117.000.00 934.716.916.11 Total $590,116.11 3,434,1,50.00 3,435,400.00 3,434,000.00 3,438,750.00 3,435,250.00 3,433,750.00 3,434,000.00 3,435,750.00 3,433,750.00 3,438,000.00 3,438,000.00 3,433,750.00 3,435,250.00 3,437,000.00 3,438,750.00 3,435,250.00 3,436,500.00 3,437,000.00 3,436,500.00 3,434,750.00 2,456,500.00 2,455,250.00 2,454,250.00 2,453,250.00 2,457,000.00 s81.581.915.11 18 DESCRIPTION OF NON-AD VALOREM REVENUES General The County generally receives two primary sources of revenue: ad valorem taxes and non-ad valorem revenues. Ad valorem taxes may not be pledged for the payment of debt obligations of the County maturing more than twelve months from the date of issuance thereof without approval of the electorate of the CounV. The ail oalorem tax reaenues of the County are not pledged as security for the paymmt of the Seies 2017 Bonds anil the County is not obligated to budget and approprtatu ad oalorem tax reaenues for the paymmt of the Seies 2017 Bonds. Non-ad valorem revenues of the County may be pledged or applied, subject to certain limitations disclosed hereirL for the payment of debt obligations of the County. Such non-ad valorem revenues include a broad category of revenues, including, but not limited to, revenues received from the federal and state govemments, investment income and income produced from certain services and facilities of the County, as described below. As more fully described herein under "SECURITY FOR THE BONDS," the County has covenanted and agreed in the Resolution, subject to certain restrictions and limitations, to budget and appropriate sufficient Non-Ad Valorem Revenues in each year to pay principal of and interest on the Series 2017 Bonds. The Holders of the Series 2017 Bonds do not have a lien on any specffic Non-Ad Valorem Revenues of the County (except the Program Revenues) and the County has certain debt and other obligations payable in the same manner as the Series 2017 Bonds and also has outstanding certain other debt obligations payable from a prior lien upon and pledge of certain specific Non-Ad Valorem Revenues sources of the County. A large percentage of the revenues of the County, including ad valorem taxes and Non-Ad Valorem Revenues, are deposited into the County's Govemmental Funds. Furthermore, as described herein under "SECURITY FOR THE BONDS," the obligation of the County to budget and appropriate Non-Ad Valorem Revenues is subject to a variety of factors, including the payment of services and programs which are for essential services for general government and safety of the hhabitants of the County or which are legally mandated by applicable law, and the obligation of the County to have a balanced budget. See "INVESTMENT CONSIDERATIONS" herein. The County is permitted by the Florida Constitution to levy ad valorem taxes at a rate of up to $10 per $1,000 of assessed valuation for general govemmental expenditures. The General Fund ad valorem tax millage rate for the Fiscal Year ending September 30,2077 is $4.7077 per 91,000. The County is also permitted by the State Constitution to levy ad valorem taxes above the $10 per $1,000 cap to pay debt service on general obligation long-term debt if approved by a voter referendum. The County does not have currently have any general obiigation bond debt outstanding. The Florida Department of Financial Services ("FDFS") has developed, as part of the Uniform Accounting System Manual's Chart of Accounts, six major categories of local government revenues: taxes; permits, fees and special assessments; intergovernmental revenues; charges for services; judgments, fines and forfeitures; and miscellaneous revenues. Using such categories, the following describes the sources of the County's Non-Ad Valorem Revenues and outlines the County's dassification of such Non-Ad Valorem Revenues pursuant to the above-described categories: 19 Taxes Communications S eruices T ax Reaenues The Communications Services Tax Simplification Act, enacted by Chapter 2000-260, Laws of Florida, as amended by Chapter 2007-740, Laws of Florida, and now codified in part as Chapter 202, Florida Statutes (the "CSTA") established, effective October 7,2007, a local communications services tax of 7.6% on the sale of communications services as defined in Section 202.17, Florida Statutes. The rate is in addition to the 0.24o/o add-on permitted by Section 337.401., Florida Statutes, and established by the County for waiving the right to collect permit fees for the use of the rights-of-way by communications providers. The proceeds of the local communications services tax, less the FDOR's cost of administration which may not exceed 1% of the total tax generated, are deposited in the Local Commurications Services Tax Clearing Trust Fund (the "CST Trust Fund") and distributed monthly to the appropriate jurisdiction. The local communicatiorts services tax revenues received by the County are deposited into the County's General Fund and may be used for any public purpose. The revenues that are received by the County from such communications services tax which derive from the CST Trust Fund created with the FDOR pursuant to Section 202.193, Florida Statutes, may be pledged for the repayment of current or future bonded indebtedness. As of November 201.6, lhe County's local communications services tax for Fiscal Year ending September 30,2017 is estimated to be $841,129 (after adjustments) by the FDOR. One effect of the CSTA was to replace the former utilities tax on telecommunications, including pre-paid calling arrangements, as well as any revenues from franchise fees on cable and telecommunications service providers and permit fees relating to placing or maintaining facilities in rights-of-way collected from providers of certain telecommunications services, with the local communications services tax. This change in law was intended to be revenue neutral to the counties and municipalities. The communications services tax applies to a broader base of communications services than the former utilities tax on telecommunications. The local communications services tax applies to the purchase of "communications services" which originated or terminated within the County, with certain exemptions described below. "Communication services" under the CSTA are defined as the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals, including cable services, to a point, or between or amonB points, by or through any electronic, radio, satellite, cable, optical, microwave, or other medium or method now in existence or hereafter devised, regardless of the protocol used for such transmission or conveyzrrce. The term does not include: (a) @) (c) (d) (e) (f) (g) (h) Information services. Lrstallation or maintenance of wiring or equipment on a customer's premises. The sale or rental of tangible personal property. The sale of advertising, including, but not limited to, directory advertising. Bad check charges. Late payment charges. Bilting and collection services. Intemet access service, electronic mail service, electronic bulletin board service, or similar on-Iine services. 20 While, such services have historically been taxed if the charges for such services are not stated separately from the charges for communications services, on a customer's bill, providers now have the ability to exclude such services from the tax if they can be reasonably identified from the selling dealer's books and records kept in the regular course of business. The dealer may support the allocation of charges with books and records kept in the regular course of business covering the dealer's entire service area, including territories outside of Florida. The sale of communications services to (i) the federal govemment, or any instrumentality or agency thereof, or any entity that is exempt from state taxes under federal law, (ii) the State or EU:ry county, municipality or political subdivision of the State when payment is made directly to the dealer by the governmental entity, and (iii) any home for the aged or educational institution (which includes state tax-supported and nonprofit private schools, colleges and universities and nonprofit libraries, art galleries and museums, arnong others) or religious institutions (which include, but are not limited to, organizations having an established physical place for worship at which nonprofit religious services and activities are regularly conducted) that is exempt from federal income tax under Section 501(c)(3) of the hrtemal Revenue Code of 7986, as amended (the "Code"), are exempt from the local communications services tax. The CSTA provides that to the extent that a provider of communications services is required to pay to a local taxing jurisdiction a tax, charge, or other fee under any franchise agreement or ordinance with respect to the services or revenues that are also subject to the local communications services tax, such provider is entitled to a credit against the amount of such local communications services tax payable to the State in the amount of such tax, charge, or fee with respect to such service or revenues. The amount of such credit is deducted from the amount that such local taxing jurisdiction is entitled to receive under Section 202.78(3), Florida Statutes. Under the CSTA, local govemments must work with the FDOR to properly identify service addresses to each municipality and county. If a jurisdiction fails to provide the FDOR with accurate service address informatiory the local govemment risks losing tax proceeds that it should properly receive. The County believes it has provided the FDOR with all information that the FDOR has requested as of the date hereof and that such information is accurate. The federal [rternet Tax Freedom Act ("ITFA") imposed a moratorium on taxation of Lrtemet access by states and political subdivisions. As amended by the Lrtemet Tax Nondiscrimination Act ("ITNA"), "L:rtemet Access" includes telecommunications services (unregulated non-utility telecommudcations, such as cable services) purchased, used or sold by a provider of intemet access to provide Intemet access, including related communication services, such as email and instant messaging. On February 24,20L6, President Obama signed the Trade Facilitation and Trade Enforcement Act of 2015, in which was a provision granting a Permanent Moratorium on Intemet Access Taxes (Pub1ic Law 774-725, Sec.922). Since the moratorium has been in place since the inception of Chapter 202, Florida Stafutes, and Lrtemet Access was not taxable pursuant to State law, the County does not anticipate any negative impact on fufure collections of local communications services tax revenues because of this action. Providers of communications services collect the local communications services tax and may deduct 0.75"/" as a collection fee (or 0.25% in the case of providers who do not employ an enhanced zip code database or a data base that is either supplied or certified by the FDOR). The communications services providers remit the remaining proceeds to the FDOR for deposit into the CST Trust Fund. The FDOR then makes monthly contributions from the CST Trust Fund to the appropriate local govemments after deducting up to 1% of the total revenues generated as an administrative fee. The amount of local commurrications services tax revenues received by the County is subject to increase or decrease due to (i) increases or decreases in the dollar volume of taxable sales within the County, (ii) legislative changes, and/or (iii) technological advances which could affect consumer preferences. The amount of the local communications services tax revenues collected within the County may be adversely affected by de-annexation. Such de-annexation would decrease the number of addresses contained within the County. At this time there are no de-annexations anticipated within the County. In the 2012 Florida Legislative sessioo pursuant to Chapter 2072-70, a Communications Services Tax Working Group ("CST Working Group") was established to study the modemization of the local communications services tax revenues and provide a report regarding its findings. In its report dated February 7,2073, the CST Working Group recommended replacing the existing local communications services tax with an increased sales and use tax. The CST Working Group conditioned their recommendations upon the option being revenue neutral and emphasized the need to hold the State and each municipality and county harmless by ensuring that the amount of revenues received under this new approach would be at least equal to the revenues that each governmental unit is currently receiving from the local communications services tax. The CST Working Group provided that the change to the tax structure must be implemented in a manner that ensures that State and local govemments are able to bond the revenue stream and that existing bonds are not impaired. To date, no legislative action has been taken with respect to the CST Working Group's recommendation. Business Tax Reaenues The "Business Tax" (formerly called the "Occupational License Tax") indudes the business taxes levied and collected by the County pursuant to Chapter 205, Florida Statutes, and Ordinance No. 00-06 enacted by the Board on September 79, 2000, as amended. Section 205.032, Florida Statutes, authorizes the County to levy "a business tax for the privilege of engaging in or managing any business, profession, or occupation within its jurisdiction." The Business Tax may be levied on: (1) Any person who maintains a permanent business location or branch office within the municipality, for the privilege of engaging in or managing any business within its jurisdiction. (2) Any person who maintains a permanent business location or brandr office within the municipality, for the privilege of engaging in or managrng any profession or occupation within its jurisdiction. (3) Any person who does not qualify under subsection (1) or subsection (2) and who transacts any business or engages i. *y occupation or profession in interstate commerce, if the Business Tax is not prohibited by the United States Constitution. All Business Tax receipts are issued for payment by the County beginning August 1 of eadr year and such taxes are due and payable on or before September 30 of each year. Each Business Tax receipt expires on September 30 of the succeeding year. Business Tax receipts that are not renewed when due and payable are delinquent and subject to a delinquency penalty of 10 percent for the month of October, 22 plus an additional 5 percent penalty for each subsequent month of delinquenry until paid. However, the total delinquency penalty may not exceed 25 percent of the Business Tax for the delinquent establishment. Any person who engages in or manages any business, occupation, or profession without first paying the required Business Tax, is subject to a penalty of 25 percent of the tax due, in addition to any other penalty provided by law or ordinance. A.y person who engages in any business, occupation, or profession covered by Chapter 205, Florida Statutes, who does not pay the required Business Tax within 150 days after the initial notice of tax due, and who does not obtain the required Business Tax receipt, is subject to civil actions and penalties, including court costs, reasonable attomeys' fees, additional administrative costs incurred as a result of collection efforts, and a penalty of up to $250. Chapter 205, Florida Statutes, provides that the County may only increase by ordinance the rates of Business Taxes every other year by ,p to 25 percent. The County last increased its Business Tax rates in Fiscal Year 2007 by five percent (5%). Lr past sessions of the Florida Legislature, legislation has been introduced that, had it been enacted, could have reduced the amount of Business Taxes to be collected by the County. Such proposed legislation was not passed. No assurance can be given that sirnilar legislation will not be re-introduced in the future. Fuel Taxes The County receives Constitutional Fuel Tax and County Fuel Tax Revenues which can only be used for transportation pu{poses. Such taxes are not available for payment of the Series 2017 Bonds. lntergovernmental Revenues A11 revenues received by a local unit from federal, state, and other local govemment sources in the form of grants, shared revenues, payments in lieu of taxes and payments in lieu of franchise fees would be included in the intergovemmental revenues category. The category can be further classified into eight subcategories: federal grants, federal payments in lieu of taxes ("PILOT"), state grants, state shared revenues, state PILOT, if any,local grants, local shared revenues, and local PILOT. If a particular grant is funded from separate intergovernmental sources, then the revenue is recorded proportionately. At this time, the County does not receive any PILOT revenues from any other govemment. The largest component is the Local Government Half-Cent Sales Tax. Half-Cent Sqles Tax Reaenues Section 212.05, Florida Statutes (the "Sales Tax Act") authorizes the levy and collection by the State of a sales tax upon, among other things, the sales price of each item or artide of tangible personal property sold at retail in the State, subject to certain exceptions and dealer allowances. In 1982, the Florida Legislature created the Local Govemment Half-Cent Sales Tax Program (the "Half-Cent Sales Tax Program") which distributes a portion of the sales tax revenue and money from the State's General Revenue Fund to counties and municipalities that meet strict eligibility requirements. [n7982, when the Half-Cent Sales Tax Program was created, the general rate of sales tax in the State was increase d from 4"/" to 5o/o, and one-half of the fiJth cent was devoted to the Half-Cent Sales Tax Program, thus giving rise to the name "Half-Cent Sales Tax." Although the amount of sales tax revenue deposited into the Half-Cent Sales Tax Program is no longer one-half of the fifth cent of every dollar of the sales price of an item subject to sales tax, the name "Half-Cent Sales Tax" has continued to be utilized. As of October 7,2001, the Half-Cent Sales Tax Trust Fund (hereinafter defined) began receiving a portion of certain taxes imposed by the State on communications services pursuant to Chapter 202, Florida Statutes. Accordingly, moneys distributed from the Half-Cent Sales Tax Trust Fund now consist of funds derived from both general sales tax proceeds and certain taxes imposed on the sales of communications services required to be deposited into the Half-Cent Sales Tax Trust Fund. The Half-Cent Sales Tax is collected on behalf of the State by businesses at the time of sale at retail, use, consumption, or storage for use or consumption, of taxable property and remitted to the State on a monthly basis. The Sales Tax Act provides for penalties and fines, including criminal prosecution, for non-compliance with the provisions thereof. The general rate of sales tax in the State is currently 6%. Section 212.20, Florida Statutes, provides for the distribution of 8.97Mo/", reduced by 0.71", of sales tax revenues to the Half-Cent Sales Tax Clearing Trust Fund (the "Half-Cent Sales Tax Trust Fund"), after providing for certain transfers to the State's General Fund. Such amount deposited in the Half-Cent Sales Tax Trust Fund is earmarked for distribution to the governing body of such county and each participating municipality within that county pursuant the following distribution formula: County Share (percentage of total Half-Cent Sales Tax receipts) unincorporated * ,lZ incorporated area population area population total county population + 213 incolporated area population municipalig population total county population * ,lg incorporated area population For purposes of the foregoing formula, "population" is based upon the latest official State estimate of population certitied prior to the beginning of the local govemment fiscal year. Should the County annex any area or should any area of the County de-annex from the County, the share of the Half-Cent Sales Tax received by the County would be respectively increased or decreased according to the foregoing formula. The HalJ-Cent Sales Tax is distributed from the Half-Cent Sales Tax Trust Fund on a monthly basis to participating units of local govemment in accordance with the Sales Tax Act and is deposited by the County into the County's General Fr.rnd. The Sales Tax Act permits the County to pledge its share of the Half-Cent Sales Tax for the payment of principal of and interest on any capital project. As of November 2076, the County's Half Cent Sales Tax for Fiscal Year ending September 30,2017 is estimated to be $8,847,287 by the FDOR. To be eligible to participate in the HaU-Cent Sales Tax Program, each municipality and county is required to have satisfied the Eligibility Requirements (defined below). Those requirements include, but are not limited to, the following: Municipality Share (percentage of total Half-Cent Sales Tax receipts) 24 (i) reported its finances for its most recently completed fiscal year to the Florida Department of Banking and Finance ("FDBF") as required by Florida law; (ii) (iii) made provisions for annual post audits of financial accounts in accordance with provisions of law; levied as shown on its most recent financial report, ad valorem taxes, exclusive of taxes levied for debt service or other special millages authorized by the voters, to produce the revenue equivalent to a millage rate of 3 mills on the dollar based upon 1973 taxable values or, in order to produce revenue equivalent to that which would otherwise be produced by sudr 3 mill ad valorem tax, to have received certain revenues from a county (in the case of a municipality), collected an occupational license tax, utility tax, or ad valorem tax, or any combination of those four sources; certified that persons in its employ as law enforcement officers meet certain qualifications for employment, and receive certain compensation; certified that persons in its employ as firefighters meet certain employment qualifications and are eligible for certain compensation; certified that each dependent special district that is budgeted separately from the general budget of such county or municipality has met the provisions for annual post audit of its financial accounts in accordance with law; and (iv) (v) (vi) (vii) certified to the FDOR that it has complied with certain procedures regarding the establishment of the ad valorem tax millage of the county or municipality as required by law. The requirements described in (i) through (vii) are referred to herein as the "Eligibitity Requirements". If the County does not comply with the Eligibility Requirements, the County would lose its Half-Cent Sales Tax Trust Fund distributions for twelve (12) months following a "determination of noncompliance" by the FDOR. The County has continuously maintained eligibility to receive the Half- Cent Sales Tax. Although the Sales Tax Act does not impose any limitation on the number of years during which the County can receive distribution of the Half-Cent Sales Tax revenues from the Half-Cent Sales Tax Trust Fund, there may be amendments to the Sales Tax Act in subsequent years imposing additional requirements of eligibility for counties and municipalities participating in the Half-Cent Sales Tax Program, and it is not unusual for the distribution forrnulas in Sections 212.20(6)(d) or 278.62, Florida Statutes, to be revised from time to time. The amount of Half-Cent Sales Tax revenues received by the County is subject to increase or decrease due to (i) increases or decreases in the dollar volume of taxable sales within the County, (ii) legislative changes relating to the overall sales tax, which may include changes in the scope of taxable sales, changes in the tax rate and changes in the amount of sales tax revenue deposited into the Half- Cent Sales Tax Trust Fund, (iii) changes in the relative population of the County, which affect the percentage of Half-Cent Sales Tax received by the County, and (iv) other factors which may be beyond 25 the control of the County, including but not limited to the potential for increased use of electronic commerce and other intemet-related sales activity that could have a material adverse impact upon the amount of sales tax collected by the State and then distributed to the County. Coun4t Medicaid Contributions Section 409.975, Florida Statutes, requires all counties in the State to pay a portion of the State matching funds required for the federal Medicaid program. Pursuant to Section 409.975, Florida Statutes, for the State Fiscal Years 2015-2016 through and including 2079-2020, the total amount of the Florida counties' arutual contribution will be the total contribution for the prior fiscal year adjusted by 50 percent of the percentage change in the State Medicaid expenditures as determined by the Social Services Estimating Conference of the State ("SSEC"). For each State fiscal year thereafter, the total amount of the Florida counties' arurual contribution shall be the total contribution for the prior fiscal year adjusted by *re percentage change in the State Medicaid expenditures as determined by the SSEC. By ]r;ne 1 of each year, the FDOR must notify each county of its individual required annual contribution which is determined by a formula provided in Section 409.975, Florida Statutes. For the County's Fiscal Year ended September 30, 2016, the County paid its required annual contribution of $3,505,519.08 to the State from the County's General Fund and for the Fiscal Year ended September 30,2077, the County has budgetedfi3,834,320 for its required annual contribution from the County's General Fr.rnd. The County's arurual contribution is due in equal monthly installments by the 5th day of each month. If the County fails to remit the payment by the 5ft of the month, the FDOR shall reduce the monthly distribution to the Cor:nty from the Half-Cent Sales Tax Trust Fund pursuant to Section 278.61,, Florida Statutes and, if necessary,by the amount of the monthly installment from the State Revenue Sharing Trust Fund pursuant to Section 218.26, Florida Statutes. The County has continuously made timely payments of its annual contribution from funds on deposit in the County's General Fund. The County does not anticipate that its receipt of Half-Cent Sales Tax Revenues or State Revenue Sharing Moneys will be affected by its obligation to make the annual contributions required by Section 409.915, Florida Statutes. In addition to the annual contributions described above, the State was required to certify to each county by August 7, 2072, the amount of such county's Medicaid billings from Novemb er 7, 2007 through April 30, 2012, which remained unpaid (the "Prior Disputed Amounts"). The State certified the County's Prior Disputed Amounts in an amount equal to $5,355,000 after the State and County entered into a settlement agreement on February 11,2013, which amount is being paid by the Cotmty from the County's General Fund over a five year period. The balance remaining at |une 30, 2077 will be $262,277.26 and at September 30,2017 such amount will be $0. In additioru certain federal funding to the State through the Low Income Pool Program (the "LIP Program") is currently scheduled to expire in ]une, 2018. The LIP Program provides federal funding to hospitals and other health providers that serve large numbers of uninsured patients. Lr the event that federal funding for the LIP Program is not renewed or substitute frodit g provided, the State Medicaid expenditures would increase. This could cause a material increase in ttre amount of the Florida counties' required contributions based on the current statutory adjustments. State Reaenue Sharing A portion of certain taxes levied and collected by the State is shared with local govemments under provisions of Section 278.275, Florida Statutes. The amount deposited by the FDOR into the State Revenue Sharing Trust Fund for Counties is 2.0810% of available sales and use tax collections after certain required distributions, and2.9"/o of the net collections from the cigarette tax. 26 The amount of revenues from the State Revenue Sharing Trust Fund for Counties distributed to any one county is the average of three factors: an eligible county's percentage of the total population of all eligible counties in the State; an eligible county's percentage of total population of the state residing in unincorporated areas of all eligible counties; and an eligible county's percentage of total sales tax collections in all eligibte counties during the preceding year. As of November 2076, the County's state revenue sharing amount for State Fiscal Year Ending ]une 30, 2017 is estimated to be $4,463,123 by the FDOR (which indudes "guaranteed entitlement", "second guaranteed entitlement", and Growth Monies, as described below). Each eligible county is entitled to receive a minimum amount of State Revenue Sharing Funds, known as *re "guaranteed entitlement" and the "second guaranteed entitlement," the first of which is correlated to amounts received by such county from certain taxes on cigarettes, roads and intangible property in the State Fiscal Year 7977-7972 and the second of which is correlated to the amount received by such county in State Fiscal Year 7987-7982 from the then-existing tax on cigarettes and intangible personal property, less the guaranteed entitlement. The funds remaining in the Revenue Sharing Trust Fund after the distribution of the Guaranteed Entitlement and Second Guaranteed Entitlement are referred to as "growth monies" that are further distributed to eligible counties (the "Growth Monies"). There are no restrictions on the use of the Guaranteed Entitlement, Second Guaranteed Entitlement or the Growth Monies revenues, however there are restrictions on the amount of funds that can be pledged for bond indebtedness. Counties are allowed to pledge the Guaranteed Entitlemgnt and the Second Guaranteed Entitlement revenues. Counties can assign, pledge, or set aside as a trust for the payment of principal or interest on bonds or any other form of indebtedness an amount up to 50 percent of the State Revenue Sharing Funds (including Growth Monies) received by it in the prior State Fiscal Year. To be eligible to participate in State Revenue Sharing in future years, the County must comply with certain eligibility and reporting requirements. If the County fails to comply with such requirementg the FDOR may utilize the best information available to it, if such in-formation is available, or take any necessary action including disqualificatiory either partial or entire, and the County shall further waive any right to challenge the determination of the FDOR as to its disbursemenl rt any. The County's receipt of distributions from the State Revenue Sharing Trust Fund may also be affected i-f the County fails to make required Medicaid contributions to the State. See "- County Medicaid Contributions" above. Franchise Fee Revenues The County is authorized by Section \80.14, Florida Statutes, to grant nonexclusive, revocable franchises to construct, reconstruct, operate and maintain, cable communications systems, telephone and telegraph facilities, and natural gas and electricity transmission and distribution facilities. Electric Franchise Fee Ret:,enues The County imposes an electric franctrise fee upon and collected from the Fort Pierce Utilities Authority ("FPUA") pursuant to Ordinance No. 97-30, enacted by the Board on September 23,7997 (the "FPUA Franchise Fee Ordinance"), whereby the County granted to FPUA, a 30 year electric franchise which is in effect until September 23,2027. Under the FPUA Franchise Fee Ordinance, FPUA is required to pay the County an amount equal to 5 percent of FPUA's Gross Revenues (as defined in Ordinance No. 97-30) received from customers in the unincorporated areas of the County. Additionally, the County imposes an electric franchise fee imposed upon and collected from Florida Power & Light Company pursuant to Ordinance No. 97-29, enacted by the Board on September 23, 1,997 (the "FPL Franchise Fee Ordinance"), whereby the County granted to FPL, a thirty-year electric franchise which is in effect until September 23,2027. Under the FPL Franchise Fee Ordinance, FPL is required to pay the County a percentage of the revenues derived from the sale of electrical energy to residential, commercial and industrial customers within the unincorporated areas of the County. The FPL Franchise Fee Ordinance provides that commencing ninety (90) days after the effective date and each month thereafter for the remainder of the term of the franchise, FPL, its successors and assigns, shall pay to the County and its successors an amount which when added to the amount of all licenses, excises, fees, charges and other impositions of any kind whatsoever (except ad valorem property taxes and non-ad valorem assessments on property, radiological emergenry preparedness paid to or for *re benefit of the County, and any charges to FPL for accepting wastewater) levied or imposed by the County against FPL's property, business or operations, and those of its subsidiaries during FPL's monthly billing period ending 60 days prior to each such payment will equal 5 percent of FPL's billed revenues, less actual write- offs, from the sale of electrical energy to residential, commercial" and industrial customers within the unincorporated areas of the County. Licenses and Pennits These are revenues derived from the issuance of occupational licenses, building permits, cerffication fees, and special assessments. Such fees currently are a minor portion of the Cotrnty's Non- Ad Valorem Revenues. Charges for Services Revenues resulting from a local unit's charges for services are reflected in this category and include those charges received from private individuals or other governmental units. The following functional areas include such charges: (D General govemment; (ii) Public safety; (iii) Physical environment; (iv) Human services; (v) Transportation and parking; (vi) Recreation and culture; and ("ii) Other. Fines and Forfeitures Fines and forfeitures reflect those penalties and fines imposed for the commission of statutory offenses, violation of lawful administrative rules and regulations. Forfeitures include revenues resulting from confiscation of deposits or bonds held as performance guarantees and proceeds from the sale of contraband property seized by law enforcement agencies. 28 Miscellaneous Non-Ad Valorem Revenue This is a broad category that includes a wide variety of revenues, including but not limited to Licensing and regulatory fees, fees for services or publications, transfers from ottrer governmental units, traffic and parking fines, interest eamings and other miscellaneous revenues. Tourist Development Tax Revenues Pursuant to Section 125.0104(3Xb), Florida Statutes, counties may levy and impose a tourist development tax within their boundaries on the exercise of the taxable privilege described in Section 125.0104(3)(a), Florida Statutes. It is the intent of the Florida Legislature that every person who rents, leases or lets for consideration any living quarters or accommodations i. *y hotef apartment hotel, motel, resort motel, apartrnent apartment motel, rooming house, mobile home park, recreational vehicle park, condominium or time share resort for a term of six months or less, subject to certain exemptions described in Chapter 2l2,Florida Statutes, is exercising a taxable privilege. The person receiving the consideration for such rental or lease shall receive, account for, and remit the tax to the County Clerk (the "Clerk") at the time and in the manner provided for persons who collect and remit taxes under Section 272.03, Florida Statutes. The same duties and privileges imposed by Chapter 272, Florida Statutes, upon dealers in tangibte property, respecting the collection and remission of tax, the making of retums, the keeping of books, records and accountq and compliance with the rules of the FDOR in the administration of said drapter shall apply to and be binding upon all persons who are subject to the provisions of Ordinance No. 11-028 enacted by the Board on September 27,2071, (the "Ordinance"). Collections received by the Clerlg less ttre costs of administration shall be paid and returned, on a monthly basis to County for use by the County and shall be placed in the County's Tourist Development Trust Fund in accordance with the County's tourist development plan. Any person who is taxable who fails or refuses to charge and collect from the person paying any rental or lease such tourist development taxes, either by himself or through his agents or employees, shall, in addition to being personally liable for the payment of such taxes, be guitty of a misdemeanor of the first degree, punishable as provided in Sections 775.082 ot 775.083, Florida Statutes. Such tourist development taxes shall constitute a lien on the property of the lessee, customer, or tenant in the same manner as, and shall be collectible as are, liens authorized and imposed in Sections773.67,773.68 and 713.69, Florida Statutes. Pursuant to Section 125.0104(3)(c), Florida Statutes, counties are authorized to levy a tourist development tax at a rate of tp to 2o/o on the exercise of the taxable privilege described above if it was approved by referendum, as required by Section 125.0104(6), Florida Statutes (the "First Cent and Second Cent"). Pursuant to Section 125.0104(3Xd), Florida Statutes, counties are authorized to levy an additional tourist development tax at a rate of 1% if there was either extraordinary approval of their respective governing boardt or referendum approval (the "Third Cent"), provided the First Cent and the Second Cent had been levied for at least three years prior to the imposition of the Third Cent. Pursuant to Section 125.0104(3)(l), Florida Statuteg counties are authorized to levy an additional tourist development tax at a rate of 1% if there is approval by a majority vote of such county's goveming board (the "Fourth Cent," the proceeds of which are referred to herein as "Fourth Cent Revenues"). The County has imposed such 1% additional tourist development tax. Fourth Cent Revenues may be used to: 29 (a) Pay the debt service on bonds issued to finance the construction, reconstruction, or renovation of a professional sports franchise facility, or the acquisitiory construction, reconstruction, or renovation of a retained spring training franchise facility, either publidy owned and operated, or publicly owned and operated by the owrrer of a professional sports franchise or other lessee with sufficient expertise or financial capability to operate such facility, and to pay the planning and design costs incurred prior to the issuance of such bonds. @) Pay the debt service on bonds issued to finance the construction, reconstruction, or renovation of a convention center, and to pay the plarming and design costs incurred prior to the issuance of such bonds. (c) Pay the operation and maintenance costs of a convention center for a period of up to ten (10) years. Only counties that have elected to levy the tax for the purposes authorized in paragraph (b) above may use the tax for the purposes enumerated in this paragraph. Any county that elects to levy the tax for the purposes authorized in paragraph (b) after |uly 1, 2000 may use the proceeds of the tax to pay the operation and maintenance costs of a convention center for the life of the bonds. (d) Promote and advertise tourism in the State and nationally and intemationally; however, if Fourth Cent Revenues are expended for an activity, service, venue, or event, the activity, service, venue/ or event shall have as one of its main purposes the attraction of tourists as evidenced by the promotion of the activity, service, venue, or event to tourists. Any county that elects to levy the Fourth Cent for these purposes after fuly 7,2000 may use the proceeds of the tax to pay the operation and maintenance costs of a convention center for the life of the bonds. A county levying the Fourth Cent may not expend any ad valorem revenues for such construction, reconstruction, or renovation. Pursuant to Section 125.0104(3)(n), Florida Statutes, a county which has imposed the Fourth Cent, is authorized to levy an additional tourist development tax at a rate up lo 1.% rt there is a majority plus one vote of the governing board of such county (the "Fifth Cent," the proceeds of which are referred to herein as "Fifth Cent Revenues"). The County has imposed such 1% additional tourist development tax. Fifth Cent Revenues may be used for the following purposes: (a)Pay the debt service on bonds issued to finance: (i) The constructiory reconstruction, or renovation of a facility either publicly owned and operated, or publicly owned and operated by the owner of a professional sports franchise or other lessee with sufficient expertise or financial capability to operate such facility, and to pay the planning and design costs incurred prior to the issuance of such bonds for a new professional sports franchise as defined in Section 288.7762, Florida Statutes. (ii) The acquisition, construction, reconstruction, or renovation of a facility either publicly owned and operated, or publicly owned and operated by the owrler of a professional sports franchise or other lessee with sufficient expertise or financial capability to operate such facility, and to pay the planning and design costs incurred prior to ttre issuance of such bonds for a retained spring training franchise. 30 (b) Promote and advertise tourism in the State and nationally and internationally; however, if tax revenues are expended for an activity, service, venue, or event, the activity, service, venue/ or event shall have as one of its main pulposes the attraction of tourists as evidenced by the promotion of the activity, service, venue, or event to tourists. A county that imposes the Fifth Cent may not expend any ad valorem tax revenues for the acquisition, constructiory reconstructiorL or renovation of a facility for which such Fifth Cent Revenues are used pursuant to subparagraph (a). Pursuant to Section 125.0104(3)(0, the tourist development tax shall be charged by the person receiving the consideration for the lease or rental, and it shall be collected from the lessee, tenant, or customer at the time of payment of the consideration for such lease or rental. The County levies each of the First Cent, the Second Cent, the Third Cenf the Fourth Cent and the Fifth Cent. As of November 2076, the County's tourist development tax for Fiscal Year ending September 30,2077 is estimated to be $3,814,362by the FDOR. [Remainder of page intentionally teft blank] 31 Historical Receipt of Non-Ad Valorem Revenues The following table shows the historical receipt by the County of significant sources of certain Non-Ad Valorem Revenues for the five Fiscal Years ended September 30 prior to issuance of the Series 2017 Bonds. The table does not include all of the Non-Ad Valorem Revenues of the County which may be available to pay debt service on the County's debt secured by these revenues. NON-AD VALOREM REVENUES OF ST. LUCIE COUNTY, FLORIDA Local communication services taxes Local business taxes Tourist development taxes Licenses and permits Franchise fees Intergovemmental revenues Charges for services Fines and forfeitures Investrnent income Contributions from property owners Miscellaneous Total Legally Available Non-Ad Valorem Revenues Source: St. Lucie County Clerk of the Circuit Court 2016 98s2,7s2 25,119 3,652,354 4,024,278 9,752,209 '1,2,593,975 1,581,158 754,862 49,756 6.345,680 $39.63L543 2015 $909,243 21,773 3,424,762 500 4,775,970 8,761,,096 72,560,347 1,,797,546 91.8,327 56,788 5.550.911 $3&120-603 2014 9927,660 24,967 3,039,203 s00 4,047,236 7,623,999 72,408,743 7,759,935 452,4U 700,639 5,773,697 ffi6lil3w 2013 $ 25,393 2,577,525 2,795,968 70,747,662 8,74L,337 565,333 765,071. 738,369 5,975,320 $31fi1218 2072 $ 24,9U 2,648,898 1,000 2,640,942 73,075,597 6,707,926 35,656 7,380,497 98,792 5,752.043 $2366325 [Remainder of page intentionally left blank] 32 Debt of County Secured by Non-Ad Valorem Revenues The following table represents outstanding debt obligations of the County secured by specific Non-Ad Valorem Revenue sources and or a covenant to budget and appropriate Non-Ad Valorem Revenues. This table is exclusive of the debt of the County's business type activities such as in the water and sewer and solid waste enterprise funds. ST. LUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE OBLIGATIONS OUTSTANDING AS OF SEPTEMBER 30, 207614I Issue Sales Tax Revenue Refunding Bonds, Series 2013A Sales Tax Revenue Refunding Bonds, Series 20138 Capital Improvement Revenue Bond, Series 2015 Transportation (Gas Tax) Revenue Bond, Series 20070) Public lmprovement Revenue Note, Series 20028 Public lmprovement Revenue Note, Series 2008A Capital Improvement Revenue Refunding Note, Series 2011 Capital Improvement Revenue Note, Series 2007 Tourist Development Tax Revenue Bond, $6dgs lQl1A{e) Tourist Development Tax Revenue Bond, $s1lss lQll!{s) Transportation Revenue Refunding Bond, Series 20150) Capital Improvement Revenue Refunding Bond, Series 2014 Capital Improvement Revenue Bond, Series 2016 Special Assessment Bond, Series 2010A Lennard ftsad l{z) Special Assessment Bond, Series 2010A Lennard Pead ltz) Special Assessment Bond, Series 20104 Lennard Road 3(2) Principal Amount Issued $47,295,000 9,405,ooo 2000,000 29,685,000 1,510,000 1,700,000 10,330,000 10,000,000 6,225,000 1,460,000 11,390,000 10,495,000 3,320,000 4,355,000 860,000 260,000 Principal Amount Outstandins $41,195,000 8,190,000 6,760,000 825,000 728,473 950,000 5,830,000 2,927,046 4,355,000 1,040,000 11,250,000 9,200,000 3,195,000 2,890,000 575,000 170,000 Source: Comprehensiae Annual Financial Report for the Fiscal Year Ended September 30, 20L6. (1) Secured by fuel tax revenues and such revenues can only be used for transportation related prdjects. (2) Secured by special assessments and a covenant to budget and appropriate Non-Ad Valorem Revenues. (3) Refinanced by the Taxable Capital Improvement Revenue RefundingNote, Series 20168 on December 22, 2076 in the amount of $4,832,000 payable from a covenant to budget and appropriate Non-Ad Valorem Revenues. See table below. (4) After September 30, 2076, the County issued its Capital Improvement Revenue Bond, Series 2016A on November 22,2016 in the amount of $3,000,000 payable from a covenant to budget arrd appropriate Non- Ad Valorem Revenues. See table below. The County also has several capital leases outstanding totaling $10,001,268 as of September 30, 2076 payable from Non-Ad Valorem Revenues. Not included in this total is a Motorola Lease in the amount of $8,967 ,207. The Motorola equipment was still being built as of Septemb er 30, 2076. From time to time, the County has issued various obligations secured by either a covenant to budget and appropriate from legally available Non-Ad Valorem Revenues or by a pledge of a specilic JJ non-ad valorem revenue source. Indebtedness of the County which is currently secured by a pledge of a specific Non-Ad Valorem Revenue source (except Program Revenues) will have a claim and lien on such source prior to any claim and lien of the Series 2017 Bonds. See below for various indebtedness secured by non-ad valorem revenues and the debt service related thereto. ST. LUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE DEBT SERVICE SCHEDULEO) 2002B Public 2007 Capital Inprove- Imprcve- Period ment ment Ending Note Note@0) 7017/2077 $133,292 $1,016,315 101u2018 1,016,03s 101u2079 "1,0"15,746 "10l"t/2020 7011/2027 101712022 101712023 701112024 70/11202s 10/7/2026 101712027 701"112028 70ft/2029 10/712030 10ft2037 10/712032 701112033 10/1/?034 10/112035 2077 2008A Capital Improve- Improve- 2013A,/B ment ment Sales Tu Note(3) Note(o Bonds(l $161,360 $1.,063,178 $4,737,400 1_65,78 1,062,977 4,729,600 764,648 1,062,222 4,733,000 163,304 7,067,094 4,735,050 761_,71_6'\,059,532 4,736,800 164,884 7,062,537 4,736,550 162,564 4,734,050 4,734,050 4,737,050 3,469,800 3,467,800 3,474,800 3,470,050 3,467,050 3,469,650 3,472,450 3,470,250 2074 201s 2076 Caoital Caoital CaDital ImLrcve- Imprcve- Imorove- ment ment ment Bond(5) Bond(r(lr) Bond(8) 97,281,720 $456,457 $273,070 1,276,774 458,785 273,^130 "t,285,146 455,907 273,060 7,278,275 457,824 277,860 7,280,921 459,467 2n,400 7,"122,845 455,905 276,870 952,90"1 457,137 ?76,090 897,452 458,095 275,240 890,967 458,779 274,260 454,257 273,750 454,530 276,91.0 454,529 275,470 454,254 273,780 453,705 2n,020 457,814 456,580 455,072 453,290 456,165 20768 2015A Taable CaDital Capital Imorove- Inorcve- ment ment Bond(e) Bond(lo) Aggregate $245,73s $n5,668 $10,13&596 291.,258 774,71.5 "10,048,362 297,2M 773,080 10,054,053 297,721 770,900 9,035,428 290,889 n4,775 9,040,900 290548 770,723 8,880,802 290,098 772,725 7,645,565 289,539 6,648,376 288,877 6,643,927 288,094 4,485,307 287,208 4,486,44 297,273 4,495,952 4,798,0U 4,797,775 3,927,444 3,929,030 'ii:i: 9733,292 S3,048,097 $1,7M,224 $6,377,480 $70,363,400 $70,?60,40'.1 58,rJ68,ss2S3,8s3,190 W,436,2t8 $5,47"r,986 $112,690,84n Source: St. Lucie County Clerk of the Circuit Court. (1) Includes both principal and interest. (2) Bears interest at the rate of 2.73Yo and is subject to acceleration upon an event of default. (3) Bears interest at the rate of 4.88% and is subject to acceleration upon an event of default. (a) Bears interest at the rateof2.7670/o and is subject to acceleration upon an event of default. (5) Bears interest at the rate of 2.00-5.00% and is not subject to acceleration upon an event of default. (6) Bears interest at the rate of 2.74"/" and is subject to acceleration upon an event of default for non-payment. (z) Bears interest at the rate ol 2.74"/" and is subject to acceleration upon an event of default for non-payment of any debt and in the case of bankruptry. (8) Bears interest at the rate of 2.60"/" and is subject to acceleration upon an event of default for non-payment (e) Bears interest at the rate of 2.78"/" and is subject to acceleration upon an event of default for non-payment. (10) Bears interest at the rate of 3.03"/" and is subiect to acceleration upon an event of default for non-payment. (u) Ror:nded to the nearest dollar. 34 INVESTMENT CONSIDERATIONS The following discussion provides information relating to certain risks that could affect payments of the principal of, redemption premium, if any, and interest on the Series 2017 Bonds. The order in which the following information is presented is not intended to reflect the relative importance of the risks discussed. The following ilformation is not and is not intended to be, exhaustive and shotrld be read in conjunction with all of the other sections of this Official Statement, including its appendices. Prospective purchasers of the Series 2017 Bonds should carefully analyze the information contained in this Official Statement, including its appendices (and including the additional information contained in the form of the complete documents referenced or summarized herein), for a more complete description of the investment considerations relevant to purchasing the Series 2017 Bonds. Copies of any documents referenced or summarized in this Official Statement are available from the County as described under "INTRODUCTION" herein. 1. There is no assurance that any rating assigned to the Series 2017 Bonds by a rating agency will continue for any given period of time or that such rating will not be lowered or withdrawn entirely by such rating agency, if in its judgment circumstances warrant. A downgrade, change in or withdrawal of any rating may have an adverse effect on the market price of the Series 2077 Bonds. See "RATINGS" herein. 2. The County's covenant to budget and appropriate from Non-Ad Valorem Revenues for the payment of the Series 2017 Bonds is limited by a number of factors. As indicated under the caption "SECURITY FOR THE BONDS - General" hereiru the County is required to operate with a balanced budget. hr additiorU the County is not required and does not covenant to maintain any services or programs which generate Non-Ad Valorem Revenues. Cancellation of any services or programs which are not essential services and that generate Non-Ad Valorem Revenues could have an adverse effect on the County fulfilling its covenant obligations under the Resolution. Certain Non-Ad Valorem Revenues, such as State revenue sharing, may be subject to modification or repeal by the State Legislature. Certain matching Non-Ad Valorem Revenues, such as govemmental, foundation or corporate grants to the County, also may be subject to modification or may be discontinued. 3. Continued consistent receipt of Non-Ad Valorem Revenues is dependent upon a variety of factors, including greater or lesser growth in the unincorporated areas of the County could have positive or negative effects on Non-Ad Valorem Revenues. The amounts and availability of any of the Non-Ad Valorem Revenues to the County are also subject to change, including reduction or elimination by change of State law or changes in the facts or circumstances according to which certain of the Non-Ad Valorem Revenues are allocated. In additiorL the amount of certain of the Non-Ad Valorem Revenues collected by the County is directly related to the general economy of the County. Accordingly, adverse economic conditions could have a material adverse effect on flre amount of Non-Ad Valorem Revenues collected by the County. The County may also specifically pledge certain of the Non-Ad Valorem Revenues or, upon meeting the anti-dilution test described under "SECURITY FOR BONDS - Issuance of Other Obligations," covenant to budget and appropriate legally available Non-Ad Valorem Revenues of the County to future obligations. In the case of a specific pledge, such Non-Ad Valorem Revenues would be required to be applied to such obligations prior to payrng the principal of and interest on the Series 2017 Bonds. 35 4. In the event of a default in the payment of principat of or interest on the Series 2017 Bonds, the remedies of the owners of the Series 2017 Bonds are limited under the Resolution. See "APPENDX C - Form of the Resolution" herein. GENERAL INFORMATION REGARDING ST. LUCIE COUNTY Background The County is located on the east south central coast of Florida, and encompasses an area of approximately 581 square miles. It is bounded on the north by L:rdian River County, on the west by Okeechobee County, on the south by Martin County and on the east by the Atlantic Ocean. Fort Pierce is the County Seat and is located approximately 50 miles north of West Palm Beadr and 100 miles southeast of Orlando. The estimated population of the County as of July 7, 2076, was 306,507. The principal industries of the County include tourism, agriculture, services, and light manufacturing. Lrcorporated areas within the County include the City of Fort Pierce, the City of Port St. Lucie and the Town of St. Lucie Village. See "APPENDX A - General Information Conceming the County" attached hereto. County Government St. Lucie County is govemed by five elected Commissioners and an appointed County Administrator. The Board operates as a non-charter govemment pursuant to Article VIII, Section (1)(f), of the Constitution of the State of Florida. The members of the County Commission and expiration of their current terms of office are: Commission Members Chris Dzadovsky, Chairman Tod Mowery, Vice Chair Linda Bartz Framie Hutchinson Cathy Townsend Date Term Exoires November 2020 November 2018 November 2020 November 2018 November 2020 The Board has entrusted the position of County Administrator to Howard N. Tipton. Mr. Tipton supervises the day-to-day workings of the County, manages the annual budget and oversees the County's operating departments and divisions. Mr. Tipton was appointed County Administrator by the Board in November 2074, having now served a total of 34 years in four different Florida counties. His previous assignments have included Deputy County Administrator for Orange County (Orlando), President/COO for a golf course development company, Chief Administrative Officer for the Orange County Clerk of Courts, and most recently County Manager for Brevard County. He eamed a Bachelor of Science degree from James Madison University, a Masters of Public Administration from the University of Central Florida and completed the program for senior executives in state and local govemment at Harvard University's ]ohn F. Kennedy Sd:rool of Govemment. His community service includes serving on ttre St. Lucie United Way Board of Directors, St. Lucie EDC Board of Directors, and as an Allegany Franciscan Ministries Lincoln Park Council Member. Past service indudes Board Chair of the United Way of Brevard and Chair of the Mental Health Association of 36 Central Florida, Board Member for Goodwill L:rdustries of Central Florida, Board Member for the Brevard Cultural Alliance, and a Stephen Minister for St. Luke's Methodist Church. The County's Finance Director is Shai Francis. Ms. Francis joined the St. Lucie County Clerk's office in October 2007. She is responsible for overseeing the operations for the Board's finance functions, which include flre investrnents, accounting, financial reporting, debt management, accounts payable, accounts receivable, gralts and contracts, Board recording secretary, and Value Adjustment Board administration. She also prepares the Clerk's annual budget and overseas the entire Clerk's finances. Ms. Francis has worked for over twenty-six years in various facets of local governmental accounting and budget. She has a B.A. in accounting from Soochow University, Taipei, Taiwan, and a MBA from Florida Institute of Technology, Florida. She is a certified public accountant and a certified govemment finance officer for the State. She is a member of AICPA (American Lrstitute of Certified Public Accountants), FICPA (Florida Institute of Certified PubLic Accountant), GFOA (Govemment Finance Officers Association), and FGFOA (Florida Govemment Finance Officers Association). The Management and Budget Director, appointed by and serving at the pleasure of the County Administrator, is responsible for preparing the County's annual budget and overseeing the County's Procurement function. The County's Interim Management and Budget Director is ]enrrifer Hill. Ms. Hill was appointed as Lrterim Management and Budget Director on May 5, 2017. She joined the St. Lucie County Office of Management and Budget in December of 2003 and has worked for twenty-two years in governmental budgeting. She eamed a Bachelor of Science degree from the University of Florida and a Masters of Business Administration from Florida Atlantic University. She is also a Certitied Govemment Finance Officer. Management Discussion The Fiscal Year 2076-2017 Budget for the County was adopted by the Board on September 19, 2016 tn the amount of $503,005,127 and was comprised of the General Fund, the Special Revenue Funds, Debt Service Funds, Capital Project Fr:nds, Enterprise Funds, Intemal Service Funds and Trust and Agency Funds. The General Fund Budget for Fiscal Year 2076-2077 was approximately $135,585,459 and represented an increase of 4.03% from the Fiscal Year 2075-2076 adopted General Fund Budget ($130,335,187). [Remainder of page intentionally left blank] 37 ST. LUCIE COUNTY, FLORIDA Fiscal Year 20L6-20L7 Adopted Budget Estimated Revenues Estimated Be ginning Balances Taxes: Ad Valorem Other Taxes & fees Licenses and Permits Intergovernmental Revenues Charges for Services Fines and Forfeits Miscellaneous Revenues Other Financing Sources Interfund Transfers - In Proceeds from LoanslBonds Intemal Services & Other Less 5% Total Estimates Revenue Sources Estimated Expenditures General Govemment Public Safety Physical Environment Transportation Economic Environment Human Services Court Related Culture & Recreation Capital Outlay Debt Service Total Expenditures/Expenses Other Financing Uses L:rterfund Transfers Transfer to Const. Officers Total Expenditures and Uses Estimated Ending Balance Total Expenditures and Uses $ 216,312,757 749,894,763 g,o33,1oo 76,759,037 44,347,766 45,706,630 7,0gg,gg7 9,230,074 1.5,1.86,523 7,965,379 732,672 11,053,515 $503,005,127 $50,777,507 22,263,699 39,510,703 26,489,363 9,795,049 12,366,875 5,9'1,2,894 20,734,208 95,878,623 75,697,672 $298,766,527 1.5,-1.86,523 88,257,241. $402,270,291, s700,794,836 $503,005,127 Source: St. Lucie County Board of County Commissioners Final Budget, Fiscal Year 20L7. 38 Reserves Pursuant to Resolution No. 10-279 adopted on October 79, 201,0, as amended and supplemented, the County established a reserve poliry. Such poliry provides that the County shall maintain a designated Emergency Reserve Fund equal to 5"/" of the total operating budget excluding funds that have a minimum of 70% or $2,000,000 in tesetves, whichever is greater. Such funds shall be used for natural or manmade disasters. Additionally, Resolution No. 10-279 provides that the County shall maintain a fund balance reserve in the General Fund equal to 5% of the General Fund operating budget. Such funds may be used to address unanticipated revenue shortfalls or any unforeseen expenditures not necessarily resulting from a nafural or manmade disaster. The County is in compliance with both of the above policies. Such policies may be modified from time to time. Debt Policy By adoption of the Fiscal Year 2016-2077 Budget the County adopted its debt poticy which establishes the following criteria: . The County will not fund operations or normal maintenance from the proceeds of long-term financing and will confine long-term borrowing and capital leases to capital improvements, projects or equipment that carurot be financed from current or projected financial resources. o The County's debt capacity will be maintained within the following generally accepted benchmarks: - Debt per capita shall remain below four hundred ($400) dollars. Direct debt includes general obligations and governmental fund bond debt. - Direct debt per capita as a percentage of income per capita should not exceed 2%. - Direct debt as a percentage of the final assessment value of taxable property as provided by the Office of the Property Appraiser shall not exceed 1%. - The ratio of direct debt service expenditures as a percentage of general govemmental expenditures will not exceed 10%. o The County strives to maintain a minimum underlying bond rating equivalent to "Upper Medium Grade" (Moody's "A" or S&P "A") and request an evaluation of their underlying rating every five years or as deemed necessary by the Board. e The County shall strive to keep the average maturity of general obligation bonds at or below fifteen years. o When financing capital projects or equipment by issuing bondq the County will amortize the debt over a term not to exceed the useful life of the project or piece of equipment. 39 . Each year the County will review its outstanding debt for the purpose of determining the feasibility of refunding an issue. . To the maximum extent possible, the County will use special assessment or self-supporting bonds in lieu of general obligation bonds. Invesbnent Policy Pursuant to Sections 125.31 and 218.415, Florida Statutes, the Board established an investment policy applicable to all surplus funds held by or for the benefit of the County. Purzuant to such investment policy, the authorized investments are as follows: a. The lntergovemmental Investment Pool rated 'AAAm" by Standard & Poor's or the equivalent by another nationally recognized self-regulatory organization (NRSRO) for a stable Net Asset Value (NAV) furrd. If the stable NAV fund has no rating then the underlying securities must be either FDIC insured; collaterali"ed under the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes; or have a long term rating of "A" or better by a nationally recognized rating agency. For a floating NAV fund, the minimum rating wiII be AAf/S1 or the equivalent by a nationally recognized rating agency. b. Negotiable direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by the United States Govemment. Such securities will include, but not be limited to, the following: 1.. 2. J. Treasury Bills Treasury Notes Treasury Bonds c. Bonds, debenfures, notes or other evidence of indebtedness issued or guaranteed by United States agencies provided such obligations are backed by the full faith and credit of the United States Govemment. Such securities will include, but not be limited to, the following: 1. Farmers Home Administration 2. Govemment National Mortgage Association (GNMA) d. Bonds, debentures, notes of or other evidence of indebtedness issued or guaranteed by United States Govemment agencies (Federal Instrumentalities) which are not backed by the fulI faith and credit of the United States Govemment. Such securities will include, but not be limited to, the following: 1. Federal Farm CreditBank (FFCB) 2. Federal Home Loan Bank or its district banks (FHLB) 3. Federal National Mortgage Association (FNMA) 4. Federal Home Loan Mortgage Corporation (Freddie-Mac) e. Non-negotiable interest-bearing time cerfficates of deposit, money market accounts or savings accounts in financial institutions organtzed under the laws of the United States, doing business and situated in this state, provided that any such deposits are secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes. f. Repurchase agreements collateraLized by Treasury Bills or Notes having a maturity of two (2) years or less. g. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agenry. h. Corporate Obligations or Corporate Notes of U.S. Corporations with at least two of the following three minimum ratings: A- by Standard & Poor's, A3 by Moody's, or A-by Fitch. i. Commercial Paper denominated in United States dollars that is rated, at the time ol purchase, Prime-1 by Moody's and A-1 by Standard & Poor's (Prime Commercial Paper). If the Commercial Paper is backed by a letter of credit (LOC), the long-term debt of the LOC provider must be rated A or better by at least two nationally recognized rating agencies. j. Srpranational Agencies - Debt obligations issued by multilateral organization of govemments of which the U.S. is a shareholder and voting member, and are denominated in U.S. dollars, with highest Short-Term or Long-Term rating (A-7+lP-1, AAA/Aaa, or equivalent). Purchase authorization includes, but is not limited to, obligations of the following multilateral organizations: 1. Intemational Bank for Reconstruction and Development (IBRD) 2. Intemational Finance Corporation (IFC) 3. European Balk for Reconstruction and Development (EBRD) 4. Inter-American Development Bank (IADB) 5. Asian Development Bank (ADB) 6. African Development Bank (AFDB) Lrvestment in derivative products is not authorized. For the purposes of this policy derivative products are defined as financial arrEu:rgements whose value are derived from changes in an underlying variable such as a stock, bond, stock index, interest rate inde>; currenry, commodity, etc. Derivative investments include, but are not limited to: fufures contracts, options contracts, forward contracts, interest tate swaps, interest rate floor or ceiling contracts, and linked index investrnents. k. Equities, Mutual Funds and/or exchange-traded funds (ETFs) - Equities, shares in open-end and no-load equity and/or fixed-income mutual funds, and/or ETFs. The County's investment policy may be modified from time to time. See also "SECURITY FOR THE BONDS" herein for a description of the provisions which govem the investment of moneys on deposit in funds and accounts established in the Resolution. 47 LIABILITIES OF THE COUNTY Pension Plans The County employees participate in the Florida Retirement System ("FRS"). FRS was created pursuant to Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. See "APPENDIX A-General Information Conceming the County-Pension Plans" for additional information on the FRS. Other Post Employment Benefits Pursuant to the provision of Section 112.080T, Florida Statutes, former employees who retire from the County and eligible dependents may continue to participate in the County's respective medicaVprescriptiory vision, dental and life insurance plans as long as they pay the fulI premium applicable to coverage elected. For the St. Lucie County Sheriff's Office employees, the County subsidizes a portion of the premiums. See "APPENDX A-General InJormation Conceming the County- Other Post Employment Benefits" for additional hformation on the County's post employment benefit plans. LEGAL MATTERS Certain legal matters in connection with the issuance of the Series 2017 Bonds are subject to an approving legal opinion of Nabors, Giblin & Nickersory PA, Tampa, Florida, Bond Counsel, whose approving opinion (a form of which is attached hereto as "APPENDX D-Form of Bond Counsel Opinion") will be available at the time of delivery of the Series 2017 Bonds. Certain legal matters will be passed on for the County by Daniel S. Mclntyre, Esq., County Attomey, and Bryant Miller Olive P.A., Miami, Florida, Disclosure Counsel. Holland & Knight LLP, Lakeland, Florida, is serving as Counsel to the Underwriters. Bond Counsel has not been engaged to, nor has it undertaken to, review (1) the accurary, completeness or sufficienry of this Official Statement or any other offering material relating to the Series 2077 Bonds; provided, however, that Bond Counsel will render an opinion to the Underwriters of the Series 2017 Bonds (upon which opinion only the Underwriters may rely) relating to the correctness of the presentation of certain statements contained herein under the heading "TAX EXEMPTION" and certain statements which summarize provisions of the Resolutiory the Series 2017 Bonds and federal tax law, and (2) the compliance with any federal or state law with regard to the sale or distribution of the Series 2017 Bonds. LITIGATION There is no pending or, to the knowledge of the County, any threatened Litigation against the County of any nature whatsoever which io *y way questions or affects the validity of the Series 2017 Bonds, or any proceedings or transactions relating to their issuance, sale, execution, or delivery, or the adoption of the Resolutiory or the collection of the Pledged Funds and the Non-Ad Valorem Revenues or the pledge of the Pledged Revenues. Neither the creatiory organization or existence, nor the title of the present members of the Board, or other officers of the County is being contested. 42 The County experiences claims, litigation, and various legal proceedings which individually are not expected to have a material adverse effect on the operations or financial condition of the County, but may, in the aggregate, have a material impact thereon. hr the opinion of the County Attomey, however, the County will either successfully defend such actions or otherwise resolve such matters without any material adverse consequences on the financial condition of the County. DISCLOSURE REQUIRED BY FLORIDA BLLIE SKY REGULATIONS Pursuant to Section 517.051,, Florida Statutes, as amended, no person may directly or indirectly offer or sell securities of the County except by an offering circular containing fuII and fair disclosure of all defaults as to principal or interest on its obligations since December 31, 7975, as provided by ruIe of the Office of Financial Regulation within the Florida Financial Services Commission (the "Commission"). Pursuant to administrative rulemaking, the Commission has required the disclosure of the amounts and types of defaults, any legal proceedings resulting from such defaults, whether a trustee or receiver has been appointed over ttre assets of the County, and certain additional financial information, unless the County believes in good faith that such information would not be considered material by a reasonable investor. The County is not and has not been in default on any bond issued since December 3'1.,1975 that would be considered material by a reasonable investor. The County has not undertaken an independent review or investigation of securities for which it has served as conduit issuer. The County does not believe that any in-formation about any default on such securities is appropriate and would be considered material by a reasonable investor in the Series 2017 Bonds because the County would not have been obligated to pay the debt service on any such securities except from payments made to it by the private companies on whose behalf such securities were issued and no funds of the County would have been pledged or used to pay such securities or the interest thereon. TAXEXEMPTION Opinion of Bond Counsel In the opinion of Bond Counsel, the form of which is included as APPENDX D hereto, the interest on the Series 2017 Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not a specific item of tax preference for federal income tax purposes under existing statutes, regulations, rulings and court decisions. However, interest on the Series 2017 Bonds is taken into account in determining adjusted current eamings for purposes of computing the alternative minimum tax imposed on corporations pursuant to the Internal Revenue Code of 7986, as amended (the "Code"). Failure by the County to comply subsequently to the issuance of the Series 2017 Bonds with certain requirements of the Code, including but not limited to requirements regarding the use, expenditure and investment of bond proceeds and the timely payment of certain investment earnings to the Treasury of the United States, may cause interest on the Series 2017 Bonds to become includable in gross income for federal income tax purposes retroactive to their date of issue. The County has covenanted in the Resolution to comply with all provisions of the Code necessary to, among other thing+ maintain the exclusion from gross income of interest on the Series 2017 Bonds for purposes of federal income taxation. kr rendering this opinion, Bond Counsel has assumed continuing compliance with such covenants. 43 Internal Revenue Code of 1986 The Code contains a number of provisions that apply to the Series 2017 Bonds, including, among other things, restrictions relating to the use or investnent of the proceeds of the Series 2017 Bonds and the payment of certain arbitrage earnings in excess of the "yield" on the Series 2017 Bonds to the Treasury of the United States. Noncompliance with such provisions may result in interest on the Series 2017 Bonds being included in gross income for federal income tax purposes retroactive to their date of issue. Collateral Tax Consequences Except as described above, Bond Counsel will express no opinion regarding the federal income tax consequences resulting from the ownership of, receipt or accrual of interest on, or disposition of the Series 2017 Bonds. Prospective purchasers of the Series 2017 Bonds should be aware that the ownership of the Series 2017 Bonds may result in other collateral federal tax consequences. For example, ownership of the Series 2017 Bonds may result in collateral tax consequences to various types of corporations relating to (1) denial of interest deduction to purchase or carry such Series 2017 Bonds, (2) the branch profits tax, and (3) the inclusion of interest on the Series 2017 Bonds in passive income for certain Subchapter S corporations. Lr additioru the interest on the Series 2017 Bonds may be included in gross income by recipients of certain Social Security arrd Railroad Retirement benefits. PURCHASE, OWNERSHIP, SALE OR DISPOSITION OF THE SERIES 2017 BONDS AND THE RECEIPT OR ACCRUAL OF THE INTEREST THEREON MAY HAVE ADVERSE FEDERAL TAX CONSEQUENCES FOR CERTAIN INDIVIDUAL OR CORPORATE BONDHOLDERS, INCLUDING, BUT NOT LIMITED TO, THE CONSEQUENCES DESCRIBED ABOVE. PROSPECTIVE BONDHOLDERS SHOULD CONSULT WITH THEIR TAX SPECIALISTS FOR INFORMATION IN THATREGARD. Other Tax Matters Interest on the Series 2017 Bonds may be subject to state or local income taxation under applicable state or local laws in other jurisdictions. Purchasers of the Series 2017 Bonds should consult their tax advisors as to the income tax status of interest on the Series 2017 Bonds in their particular state or local jurisdictions. During previous years legislative proposals have been introduced in Congress, and in some cases enacted, that altered certain federal tax consequences resulting from the ownership of obligations that are similar to the Series 2017 Bonds. hr some cases these proposals have contained provisions that altered these consequences on a retroactive basis. Such alteration of federal tax consequences may have affected the market value of obligations similar to the Series 2017 Bonds. From time to time, legislative proposals are pending which could have an effect on both the federal tax consequences resulting from ownership of the Series 2017 Bonds and their market value. No assurance can be given that additional legislative proposals will not be introduced or enacted that would or might apply to, or have an adverse effect upon, the Series 2017 Bonds. For example, proposals have been discussed in corurection with deficit spending reduction, job creation and other tax reform efforts that could significantly reduce the benefit of, or otherwise effect the exclusion from gross income oi interest on obligations such as the Series 2017 Bonds. The further introduction or enactment of one or more of such proposals could affect the market price or marketability of the Series 2017 Bonds. M Bond Premium The diJference between the principal amount of the Series 2017 Bonds (collectively, the "Premium Bonds") and the initial offering price to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at which price a substantial amount of such Premium Bonds of the same maturity was sold constitutes to an initial purchaser amortizable bond premium which is not deductible from gross income for Federal income tax purposes. The amount of amortizable bond premium for a taxable year is determjned actuarially on a constant interest rate basis over the term of each Premium Bond (or, in the case of certain Premium Bonds callable prior to maturity, the amortization period and yield must be determined on the basis of the earliest call date that results in the lowest yield on the Premium Bond). For purposes of determining gain or loss on the sale or other disposition of a Premium Bond, an initial purchaser who acquires such obligation in the initial offering to the public at the initial offering price is required to decrease such purchaser's adjusted basis in such Premium Bond annuatty by the amount of amortizable bond premium for the taxable year. The amortization of bond premium may be taken into account as a reduction in the amount of tax-exempt income for purposes of determining various other tax consequences of owning such Premium Bonds. Owners of the Premium Bonds are advised that they should consult with their own advisors with respect to the state and local tax consequences of owning such Premium Bonds. RATINGS Moody's hrvestors Service ("Moody's") and S&P Global Ratings ("S&P") are expected to assign their ratings of "Aa3" and "AA-" (stable outlook) respectively, to the Series 2017 Bonds. Generally, a rating agency bases its rating on information and materials and on investigations, studies and assumptions furnished to and obtained and made by the rating agenry. The rating reflects only the view of said rating agency and an explanation of the rating may be obtained only from said rating agency. There can be no assurance that such rating will continue for any given period of time or will not be revised downward or withdrawn entirely by such rating agenry, if in its judgment circumstances so warrant. Aoy such downward revision or withdrawal of the ratings of the Series 2017 Bonds may have an adverse effect on the market price of the Series 2017 Bonds. The County undertakes no responsibility to oppose any such revision or withdrawal. An explanation of the significance of the ratings can be received from the following: Moody's, 7 World Trade Center, 250 Greenwich Street, New York, NY 10007 and S&P, 55 Water Street New York, New York 10041. FINANCIAL ADVISOR The County has retained Public Financial Management, Inc., Orlando, Florida, as Financial Advisor irt corurection with the County's financing plans and with respect to the authorization and issuance of the Series 2017 Bonds. The Financial Advisor is not obligated to undertake and has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in the Official Statement. The Financial Advisor did not participate in the underwriting of the Series 2017 Bonds. 45 INDEPENDENT ACCOUNTANTS The Independent Auditors' Report of the County for the Fiscal Year ending September 30,2076 and report relating to the Basic Financial Statements contained therein of Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL, Fort Pierce, Florida (the "Independent Certified Public Accountants") are attached hereto as "APPENDIX B - Lrdependent Auditors' Report of the County." Such statements speak only as of September 30,2076. The Independent Auditors' Report attached hereto as "APPENDX B - hrdependent Auditors' Report" is presented for general inJormation purposes only. The County covenanted and agreed in the Resolution to, immediately after the dose of each Fiscal Year, cause the financial statements of the County to be properly audited by a recognized independent certified public accountant or recognized independent firm of certified public accountants, and shall require sudr accountants to complete their report on the annual financial statements in accordance with applicable law. The annual financial statement shall be prepared in conformity with generally accepted accounting principles consistently applied. UNDERWRITING The Series 2017 Bonds are being purchased by Wells Fargo Bank, National Association and Citigroup Global Markets Inc. (the "Underwriters") at an aggregate purchase price of $55,255,764.85 (which indudes original issue premium of $8,459,446.00 and Underwriters' discount of $68,681.15). The Underwriters' obligations are subject to certain conditions precedent contained in a contract of purchase entered into with the County, and, it will be obligated to purchase all of the Series 2017 Bonds if *y Series 2017 Bonds are purchased. The Series 2017 Bonds may be offered and sold to certain dealers (including dealers depositing such Series 2017 Bonds into investnnent trusts) at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriters. Wells Fargo Securities is the trade name for certain securities-related capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, National Associatiory which conducts its municipal securities sales, trading and underwriting operations through the Wells Fargo Bank, NA Municipal Products Group, a separately idenffiable department of Wells Fargo Bank, National Associatiory registered with the Securities and Exchange Commission as a municipal securities dealer pursuant to Section 15B(a) of the Securities Exchange Act of 1934. Wells Fargo Bank, National Association, acting through its Municipal Products Group ("WFBNA"), the senior underwriter of the Series 2077 Bonds, has entered into an agreement (the "WFA Distribution Agreement") with its #filiate Wells Fargo Clearing Services, LLC (which uses the trade name "Wells Fargo Advisors") ("WFA"), for the distribution of certain municipal securities offerings, including the Series 2017 Bonds. Pursuant to the WFA Distribution Agreement, WFBNA will share a portion of its underwriting compensation with respect to the Bonds with WFA. WFBNA has also entered into an agreement (the "WFSLLC Distribution Agreement") with its affiliate Wells Fargo Securities, LLC ("WFSLLC"), for the distribution of municipal securities offering+ induding the Series 2017 Bonds. Pursuant to the WFSLLC Distribution Agreement WFBNA pays a portion of \AIFSLLC's expenses based on its municipal securities transactions. WFBNA, WFSLLC and WFA are each wholly-owned subsidiaries of Wells Fargo & Company. 46 Citigroup Global Markets Inc., an underwriter of the Series 2077 Bonds, has entered into a retail distribution agreement with UBS Financial Services Inc. ("L|BSFS"). Under this distribution agreemen! Citigroup Global Markets Inc. may distribute municipal securities to retail investors through the financial advisor network of UBSFS. As part of this arrangement, Citigroup Global Markets Inc. may compensate LIBSFS for its selling efforts with respect to the Series 2017 Bonds. CONTINGENT FEES The County has retained Bond Counsel, the Financial Advisor and Disclosure Counsel with respect to the authorizatron, sale, execution and delivery of the Series 2017 Bonds. Payment of the fees of such professionals and an underwriting discount to the Underwriters (which includes the fees of Underwriters' Counsel) are each contingent upon the issuance of the Series 2017 Bonds. ENFORCEABILITY OF REMEDIES The remedies available to the owners of the Series 2017 Bonds upon an event of default under the Resolution, are in many respects dependent upon judicial actions which are often subject to discretion and delay. Under existing constitutional and statutory law and judicial decisions, including specifically the federal bankruptcy code, the remedies specified by the Resolution and the Series 2017 Bonds, may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Series 2017 Bonds (including Bond Counsel's approving opinion) will be qualified, as to the enforceability of the remedies provided in the various legal instruments, by limitations imposed by bankruptcy, reorganizatiorL insolvency or other similar laws affecting the rights of creditors enacted before or after such delivery. See "APPENDX C - Form of the Resolution" attached hereto for a description of events of default and remedies. CONTINUING DISCLOSURE The County will covenant for the benefit of the owrrers of the Series 2017 Bonds to provide certain financial information and operating data relating to the County (the "Annual Report"), and to provide, or cause to be provided, notices of the occurrence of certain enumerated events. Annual financial information and operating data of the County will be filed by the County with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System ("EMMA"). The notices of material events, when and if they occur, shall be timely filed by the Cor:nty with EMMA. The specffic nature of the financial information, operating dafa, and of the type of events which trigger a disclosure obligation, and other details of the undertaking are described in "APPENDX E - Form of Continuing Disclosure Certificate" attached hereto. The Continuing Disdosure Certificate shall be executed by the County prior to or upon the issuance of the Series 2017 Bonds. These covenants have been made in order to assist the Underwriters in complying with the continuing disclosure requirements of Rule 1,50-12 promulgated by the Securities and Exchange Commission (the "Rule"). With respect to the Series 2017 Bonds, no party other than the County is obligated to provide any continuing disclosure information with respect to the Rule. \Atrhile not considered by the County to be a material failure to comply, at various times during the past five yearg the County has inadvertently failed to file notices of events timely regarding the ratings changes of the insurers of their respective indebtedness. Notices have since been filed indicating the current ratings of the bond insurers which insure their currently outstanding indebtedness. All such failures have been cured as of the date hereof. The County has aligned all of its EMMA filings to ensure compliance under its continuing disclosure undertakings. The County fully anticipates satisfying all future obligations required pursuant to the RuIe. ACCURACY AND COMPLETENESS OF OFFICIAL STATEMENT The references, excerpts, and summaries of all documents, stafutes, and information concerning the County and certain reports and statistical data referred to herein do not purport to be complete, comprehensive and definitive and each such zummary and reference is qualified in its entirety by reference to each such document for full and complete statements of all matters of fact relating to the Series 2017 Bonds, the security for the payment of the Series 2017 Bonds and the rights and obligations of the owners thereof and to each such statute, report or instrument. Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. Neither this Official Statement nor any statement that may have been made verbally or in writing is to be construed as a contract with the owrrers of the Series 2017 Bonds. The appendices attached hereto are integral parts of this Official Statement and must be read in their entirety together with all foregoing statements. [Remainder of page intentionally left blank] 48 AUTHORIZATION OF OFFICIAL STATEMENT The execution and delivery of this Official Statement has been duly authorized and approved by the County. At the time of delivery of the Series 2017 Bonds, the County will furnish a cerfficate to the effect that nothing has come to their attention which would lead it to believe that the Official Statement (other than information herein related to DTC, the book-entry only system of registration and the inJormation contained under the caption "TAX EXEMPTION" as to which no opinion shall be expressed), as of its date and as of the date of delivery of the Series 2017 Bonds, contains an untrue statement of a material fact or omits to state a material fact which should be included therein for the purposes for which the Official Statement is intended to be used, or which is necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading. BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA By: lsl Chris Dzqdoaslcy Chairman, Board of County Commissioners Bv: lsl Howard N. Tiaton County Administrator 49 ITHIS PAGE INTENTIoNALLY LEFT BLANK] APPENDIXA GENERAL INFORMATION CONCERNING THE COUNTY THE FOLLOWING INFORMATION CONCERNING ST. LUCIE COUNTY, FLORIDA (THE ''COUNTY") IS INCLUDED ONLY FOR THE PURPOSE OF PROVIDING GENERAL BACKGROUND INFORMATION. THE INFORMATION HAS BEEN COMPILED ON BEHALF OF THE COUNTY AND SUCH COMPILATION INVOLVED ORAL AND WRITTEN COMMUNICATIONS WITH THE VARIOUS SOURCES INDICATED HEREIN. THE INFORMATION IS SUBIECT TO CFIANGE, ALTHOUGH EFFORTS HAVE BEEN MADE TO UPDATE THE INFORMATION WHERE PRACTICABLE. CERTAIN OF THE TABLES THAT FOLLOW IN THIS APPENDX HAVE BEEN DERTVED FROM THE STATISTICAL SECTION OF THE COUNTY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30,2076. BACKGROUND The County is located on the east south central coast of Florida, and encompasses an area of approximately 572 square miles. It is bounded on the north by Indian River County, on the west by Okeechobee County, on the south by Martin County and on the east by the Atlantic Ocean. Fort Pierce is the County Seat and is located approximately 60 miles north of West Palm Beach and 100 miles southeast of Orlando. As of ]u1y 1, 2076, population of the County was estimated at 306,507. The principal industries of the County include tourism, agriculture, services, and light manufacfuring. Lrcorporated areas within the County include the City of Fort Pierce, the City of Port St. Lucie and the Town of St. Lucie Village. EDUCATIONAL FACILITIES The County public school district has 17 elementary schools grades kindergarten through 5, 9 kindergarten through 8 schools, 4 middle schools, 5 high schools, 1 school which combines a middle school and a high school, 3 non-traditional schools which includes the Dale Cassens Education Complex for the physically and emotionally handicapped students at all grade levels and 4 magnet schools serving grades kindergarten through 8. Of these, there are two magnet schools serving grades kindergarten through 5, one magnet school serving grades kindergarten through 8, and one magnet school which combines a middle school and a high school. There are ten private schools supplementing the public school system. Within the County, there is one private institution of higher education - Keiser University, and four public institutions, Florida Atlantic University (FAU), Fortis Lrstitute, Virginia College and Indian River State College (IRSC). Keiser University focuses on vocational education, and associate, bachelor and graduate degrees for non- traditional students. IRSC is a four-year state college whose main campus is located in Ft. Pierce and offers a diverse range of bachelor degrees, some of which are biology, educatiorL nursing, and digital media as well as associate degrees. The FAU campus located in Ft. Pierce is dedicated to exploring the world's oceans and integrating the science and technology of the sea with the needs of humankind. A-1 CTIMATE St. Lucie County features a warrn humid subtropical climate, falling just short of having a true tropical climate. Summers are usually hot, with temperatures averaging low 90s. Winters are usually mild to warm, with average temperatures around 70oF. The average yearly precipitation is around 53.5 in. AGRICULTURE The County is the 7th largest aquaculture economy in the State, the 6th largest fruit-producing county in the State, and 1't in grapefruit acreage. According to the 2012 census, the County has a total area of approximately 572 square miles. Approximately fifty-three percent (53%) of the County's land is classified as agriculture. According to the U.S. Department of Commerce's 2012 Census of Agriculture, as of 2012 there were 406 counted farms in the County, encompassing approximately 795,755 acres. The market value of a1l agricultural products (i.e., crops and livestock) produced in the County amounted to $168 million in sales. TOURISM AND RECREATION A combination of favorable climate and avai]able recreational assets such as 21 miles of beaches, tennis courts, golf courses, world class fishing, and a thriving arts and culture scene has made tourism an important industry in St. Lucie County. Within the County, there are 63 hotels, motels, RV parks, and campgrounds with approximately 4,800 total units. The County also has over 319 licensed dining establishments with an estimated seating capacity in excess of 27 ,000. The County has one inlet, located at its northeast corner and is connected to the federally-maintained Intracoastal Waterway. County residents have easy access to the ocean by way of the North Fork of the St. Lucie River through its protected, tree-Lined waterway meandering through the County. Besides boating and fishing, the County maintains Regional Parks, St. Lucie County Sports Complex, stadiums, ball fields, natural resource based parks/preserves and a botanical garden. Community Parks have lighted facilities for organized athletic programs. The County also owns and operates the Fairwinds Golf Course, an 18-ho1e championship golf course. TRANSPORTATION FACILITIES The County is situated in an area where the Florida Turnpike, Interstate 95, US Highway 1, the St. Lucie County Intemational Airport, the Port of Fort Pierce and the Florida East Coast Railway system are in close proximity to each other. This provides for easy access to County amenities, commercial opportunities, as well as access to other parts of the state. A-2 POPULATION STATISTICS The County has experienced rapid growth in recent decades which exceeds the state growth rate. The following table presents historical population growth for the County for the period of 2007 to2076. POPULATION STATISTICS FOR ST. LUCIE COUNTY AND STATE OF FLORIDA Year 2007 2008 2009 2010 2071. 2072 2013 2074 2015 2076 ST. LUCIE COLiNTY Population 277,961 276,595 272,964 277,789 279,696 280,355 28'.1,,1.5L 282,827 287,749 306,507 STATE OF FLORIDA Population 78,277,888 78,423,878 1,8,537,969 78,901,,332 78,905,048 79,074,434 19,259,543 79,507,369 19,815,183 20,748,654 7" Chanse 4.9% 7.7 (1.4) 1.8 0.7 0.2 0.3 0.6 1.8 6.5 7" Chanee 7.7 0.8 0.6 1.4 0.6 0.9 1.0 1.3 7.6 7.7 Source:U.S. Department of Commerce, Bureau of Administration, P op ulation Diaision, Bureau Abstract 20L6. Census; Uniaersity of Floridn, College of Business of Economic and Business Research, Florida Statistical A-3 ASSESSED VALUATIONS ST. LUCIE COUNTY, FLORIDA Fiscal Year Real P16Dg1tv(t)(:) 2007 935,297,381,,073 2008 35,927,342,207 2009 30,656,945,464 201.0 23,053,499,012 2011. 20,280,817,028 2072 79,773,039,636 2073 18,590,9s8,586 2074 78,278,465,727 201.5 19,129,945,370 201.6 20,798,536,263 Personal Propertv 93,003,465,947 2,900,867,475 3,061.,594,950 3,278,060,429 3,228,764,567 3,293,34-1.,552 23,238,698,229 22,848,082,159 23,912,431.,713 25,998,770,329 Total Assessed Valuation 0XzXs) $38,336,598,574 38,864,635,859 33,7W,284,975 26,377,942,906 23,543,369,979 22,507,557,897 22,238,606,523 22,970,680,s25 23,880,397,036 25,609,842,91.6 Exemotions $13,923,788,784 13,310,554,702 72,218,435,134 9,340,839,671, 8,377,431,327 7,893,L66,317 7,899,097,097 7,793,183,273 8,252,543,413 9,346,234,656 Ta)(able(4) Valuation $24,412,809,790 2s,554,081.,757 21.,558,849,841. 17,031.,703,295 15,765,938,592 74,608,385,586 741339,509,426 75,177,497,252 1.5,627,853,623 76,263,608,260 Centrally Assessed P.oru11v€) $34,7s7,554 42,426,777 58,744,561. 40,383,465 33,788,294 35,770,709 30,940,040 34,777,318 45,267,354 47,059,179 Source: Department of Reoenue, State of Florida, and St. Lucie County Properly Appraiser. (1) Total assessed value based on approximately 80% of estimated actual value. (2) Centrally assessed property that is assessed by the State of Florida rather than by the Property Appraiser (property located in more than one county). Centrally assessed property is primarily railroad property. (3) The breakdown of commercial and non-comrnercial real property assessed value is not available. ( ) The Taxable Valuation is the difference between the Total Assessed Valuation and the Exemptions. A-4 TAXES LEVIED AND COLLECTED ST. LUCIE COUNTY, FLORIDA Fiscal Year Ending 2007 2008 2009 2070 2077 2072 2013 2014 2075 2076 Tax Roll Year 2006 2007 2008 2009 2070 2077 2012 2073 2074 2015 Total Tax Leviedr) $795,293,400 790,'1,u,760 760,477,667 729,397,667 727,7L4,008 723,794,325 121,326,274 737,375,253 735,356,839 746,099,632 Current Tax Collectionse) $1,87,777,075 1,82,74,255 753,137,U7 724,073,907 722,753,725 717,778,059 776,747,857 726,409,875 730,274,723 740,581.,398 Percentage of Current Tax Collections to Tax Levy 96.15% 96.L0 95.42 95.U 96.72 95.72 95.73 96.26 96.24 95.22 Delinquent Tax Collections0t $4,663 321,,783 335,188 86,720 122,577 256,258 799,245 706,870 782,794 52,463 Total Tax Collections $187,781,678 183,086,038 753,467,029 724,700,627 722,876,296 777,434,317 776,347,096 726,576,745 730,456,377 1.40,633,861. Percent of Total Tax Collections to Total Tax Levy 96.15% 96.27 95.63 95.97 96.21. 95.32 95.90 96.35 96.38 96.25 Source: St. Lucie Au ry Taa Colledor ond the Clc* of t}z Citcuit Court. (1) Total tax levy amounts reflect property taJ@s collected on behrlf of St. Lu.ie County only. This amount represents the odginal levy plus addidons, Fnalties,e ors, and other adiustments. (2) Current Tax cole.tions rePl€sents only the .ash .o[ected. A11 tares are due and payable on November 1, of each year or as soon thereafter as tfu assessmmt ro1l is certified and delivered to the Tax Collector. A[ mpaid t xes become delinquent on Apdl 1 fo[owing the year in which they are assessed. Discounts are allowed fol early paymmt at the rate oI4% in the month of November, 3% in Dec€mber, 2% in January and 1% m February. The taxes paid in March are not discountred. (3) The delinquent tar( .onedions indude delinquent taryible personal property taxes and County taJ< c€rtificates. A-5 Taxpaygr Florida Power & Light Corp. Tropicana Manufacfuring Co. Inc. Wynne Building Corp. Wal-Mart Stores East LP Bellsouth Telecommunications HCA/Lawnwood Medical Center [rc. Florida Gas Transmission Co. LLC KRG Port St. Lucie Landing LLC Sandpiper Resort Properties L:rc. Florida East Coast Railway ASSESSMENT OF TEN LARGEST PRINCIPAL PROPERTY TAXPAYERS ST. LUCIE COUNTY, FLORIDA Total Taxable Value $ 2,687,324,996 725,828,t97 779,965,7ffi 83,932,485 69,U5,695 45,367,930 4,g75,ooo 39,956,150 37,U9,670 37,233,995 Percent of Total Taxes Levied 70.49% 0.49 0.47 0.33 0.27 0.18 0.18 0.16 0.15 0.15 Source: St. Lucie County Tax Collector Olfice and St. Lucie County Property Appraiser. MAIOR EMPLOYERS ST. LUCIE COUNTY, FLORIDA 2015 Emplover St. Lucie County Sctrool Board Lrdian River State College WaI-Mart Retail Stores and Distribution Center HCA/Lawnwood & St. Lucie Medical Center [rc. St. Lucie County Govemment Publix City of Port St. Lucie Convey Health Solutions Liberty Medical Supply Martin Health System Number of Emplovees 5,476 2,N0 2,253 2,'],89 1,,686 1,466 1,015 9s0 920 8s0 Source: Economic Deuelopment Council of St. Lucie County. Note: St. Lucie County Govemment includes the Board of County Commissionerg Clerk of the Circuit Courf Property Appraiser, Tax Collector, Sheriff and Supervisor of Elections. A-5 UNEMPLOYMENT RATES The unemployment rate for the County is generally higher than the unemployrnent rate for the State due, in part to the greater dependence on agricultural and construction employment within the County and seasonal variations related to such employment. hr the latest preliminary figures available, the County's unemployment rate for February 2077 was 5.3%, while the overall unemployment rate for the State was 4.7o/". Labor Force St. Lucie County, Florida Year 2007 2008 2009 2010 2011 2072 2073 2014 2075 2076 Year 2007 2008 2009 2010 2077 2072 2073 2014 2075 201.6 Labor Force 724,273 724,433 723,358 124,666 725,297 125,942 729,282 730,594 731,774 734,379 Labor Force 9,206,000 9,224,000 9,066,000 9,732,000 9,249,000 9,249,000 9,467,000 9,590,000 9,619,000 9,839,000 Emplovment 117,335 773,699 707,729 1.07,327 708,959 712,077 776,348 720,7s3 722,Ul 126,779 State of Florida Emolovment 8,839,000 8,&7,000 8,127,000 8,102000 9,279,000 9,279,000 9,777,000 9,979,000 9,099,000 9,359,000 Unemployment Number 6,878 70,734 76,229 17,345 76,332 73,937 72,934 70,M7 8,273 7,607 Unemployment Number 367,000 577,000 939,000 1,030,000 970,000 970,000 689,000 501,000 521,000 480,000 Unemployment Rate 5.SYo 8.6 13.2 73.9 13.0 77.7 10.0 8.0 6.3 5.7 Unemployment Rate 4.0% 6.3 10.4 11.3 10.5 10.5 /.3 6.3 5.4 4.9 A-7 Source: Florida Agency for Worlcforce Innouation. PERSONALINCOME (n07-z{i/rcl Year 2007 2008 2W Total Personal Income (000s) $7,623,ffi 7,g2g,g5g 7,W,937 8,269,U7 8,526,570 9,070473 9,943,912 9,932,393 10,636,320 N/A Banks 93,139,422 3,71,6,9'1,6 3,573,495 3,11,4,130 294c.,698 3,15L,55g 3,28,78 3,395,9ffi 3,51L243 3,W,495 % Lrcrease 7.1o/o 4.00 (0.8) 5.1 4.3 4.5 (o.n 11.1 7.1 N/A Savines & Loan w9,709 458,455 389221, 370,672 332M7 174,767 74,628 75,40 80,392 52,68 Per Capita Income $30,112 31,165 29,gil 29,[365 31,64 32330 32,932 wze 35,625 N/A Source: Comprehensioe Annual Financial Report for Fiscal Ymr Enileil Sqtmtber 30, 20L6. BANKDEPOSITS Laet 10 Fiecal Years St Lucie County (in thousands) 2010 2017 2012 2013 2014 2015 201.6 2017 2012 2013 2014 20L5 2076 Source: wttno.FDlC.soo - Summmy of Depwih. Year 2W7 2008 2009 2010 Total $3,83&131 4,175,37'1, 3,952,706 3,&1,W2 3,276,739 3326,335 3363,41,6 3,47'1,,@0 3,692,635 3,927,lU A-8 BUILDING PERMIT ACTIVITY ST. LUCIE COUNTY, FLORIDA (2007-20161 Total Value ($000) $30&236 136,066 26,243 32,&2 49,941 57,505 95,383 747,599 196,774 736,697 Number of Units Year 2007 2008 2009 2010 2077 2012 2013 2074 2015 201.6 Sinele Familv 7,690 6U zil 265 266 279 587 682 945 225 Multi-Familv 353 345 10 28 49 36 45 2N 2M 0 Source: Florida Statistical Abstract 201.5, U.S. Bureau of Census; 2016 dnta from St. Lucie County, Florida. A-9 PENSION PLANS The information relating to the Florida Retirement System ("FRS") contained herein has been obtained from the FRS Pension Plan and Other State Administered Systems Comprehensiue Annual Financial Reports aaailable at www. dms.myflorida.comlworkforce_operations/retirementlpublicationsl annual_reports and the Florida Comprehensiae Annual Financial Reports aaailable at wtxt. myfloridacfo.com/diaision/aalReportsl. No representation is made by the County as to the accuracy or adequacy of such information or that there has not been any materinl adaerse change in such information subsequent to the date of such information. The Florida Retirement System (the "FRS") is a cost-sharing multiple-employer public-employee retirement system with two primary plans - the FRS defined benefit pension plan (the "FRS Pension Plan") and the FRS defined contribution plan (the "FRS lrvestrnent Plan"). Florida Retirement System Membership. FRS membership is compulsory for all employees filling a regularly established position in a state agency, county agency, state universiry state community college, or district school board. Participation by cities, municipalities, special districts, charter schools, and metropolitan planning organizations, although optionaf is generally irrevocable after election to participate is made. Members hired into certain positions may be eligible to withdraw from the FRS altogether or elect to participate in the non-integrated optional retirement programs in lieu of the FRS except faculty of a medical college in a state university who must participate in the State University System Optional Retirement Program. There are five general classes of membership, as follows: . Regular Class - Members of the FRS who do not qualify for membership in the other classes. o Senior Management Seraice Class ("SMSC") - Members in senior management level positions in state and local goverrurents as well as assistant state attorneys, assistant statewide prosecutors, assistant public defenders, assistant attomeys general, deputy court administrators, and assistant capital collateral representatives. Members of the Elected Officers' Class may elect to withdraw from the FRS or participate in the SMSC in lieu of the Elected Officers'Class. . Special Risk Class - Members who are employed as law enforcement officers, firefighters, firefighter trainers, fire prevention officers, state fixed-wing pilots for aerial firefighting surveillance, correctional officers, emergency medical technicians, paramedics, community-based correctional probation officers, youth custody officers (from July 7, 2007 through ]une 30, 2014), certain health-care related positions within state forensic or correctional faciJities, or specified forensic employees of a medical examiner's office or a law enforcement agency, and meet the criteria to qualify for this class. . Special Risk Administratiae Support Class - Former Special Risk Class members who are transferred or reassigned to nonspecial risk law enforcement fuefighting, emergency medical care, or correctional administrative support positions within an FRS special risk- employing agency. A-10 orncers ,.0 *"'l',!'i* :f;::-":fl,,:,'3: [.YiTlil1,]f",':iij::':ir',,T.i:1 :ilL? officials in this class. Beginning fly L,2001, through June 30, 2011, the FRS Pension Plan provided for vesting of benefits after six years of creditable service for members initially enrolled during this period. Members not actively working in a position covered by the FRS Pension Plan on luly 7,2001, must retum to covered employment for up to one work year to be eligible to vest with less service than was required under the law in effect before l.iy 7,2001. Members initially enrolled on or after fuly 1.,2001, through ]une 30, 2011, vest after six years of service. Members initially enrolled on or after luly 7,2011, vest after eight years of creditable service. Members are eligible for normal retirement when they have met the requirements listed below. Early retirement may be taken any time after vesting within 20 years of normal refuement age; however, there is a 5% benefit reduction for each year prior to the normal retirement age. -For,,"-o",,tilJjffi ,iil";K"{f:{;:::T';1:T:;:::irff :rrr:K':";#:;!::; of creditable service and age 62, or lhe age after completing six years of creditable service if after age 62. Thrty years of creditable service regardless of age before age 62. For members initially enrolled in the FRS Pension Plan on or after ]uly 1, 2011, eight or more years of creditable service and age 65, or the age after completing eight years of creditable service if after age 65. Thirty-three years of creditable service regardless of age before age 65. . Special Risk Class and Special Risk Administratioe Support Class Members - For members initially enrolled in the FRS Pension Plan before ]uly 1, 2011, six or more years of Special Risk Class service and age 55, or the age after completing six years of Special Risk Class service if after age 55. Twenty-five years of special risk service regardless of age before age 55. A total of 25 years of service including special risk service and up to four years of active duty wartime service and age 52. Without six years of Special Risk Class service, members of the Special Risk Administrative Support Class must meet the requirements of the Regular Class. For members initially eruolled in the FRS Pension Plan on or after fuly 1.,2011, eight or more years of Special Risk Class service and age 60, or the age after completing eight years of Special Risk Class service if after age 60. Thirty years of special risk service regardless of age before age 60. Without eight years of Special Risk Class service, members of the Special Risk Administrative Support Class must meet the requirements of the Regular Class. Benefits. Benefits under the FRS Pension Plan are computed on the basis of age, average final compensation, creditable years of service, and accrual value by membership class. Members are also eligible for in-line-of-duty or regular disability and survivors' benefits. Pension benefits of retirees and annuitants are increased each July 1 by a cost-of-living adjustment. If the member is initially enrolled in the FRS Pension Plan before July 7,2011, and all service credit was accrued before lt;Iry 7,2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before }uly 7,2011, and has service credit on or after luly 7,2011, there is an individually calculated cost-of-living adjustment. The anrrual cost-of-living adjustment is a proportion of 3/" determined by dividing the sum of the pre-]uly 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Pension Plan members initially enrolled on or after ]uly 1, 2011, will not have a cost-of-living adjustment after retirement. A-11 The Deferred Retirement Option Program ("DROP") became effective July 1, 1998. FRS Pension Plan members who reach normal retirement are eligible to defer receipt of monthly benefit payments while continuing employment with an FRS employer. An employee may participate in the DROP for a maximum of 60 months. Authorized instructional personnel may participate in the DROP for up to 36 additional months beyond their initial 60-month participation period. Monthly retirement benefits remain in the FRS Trust Fund during DROP participation and accrue interest. As of fune 30,2076, the FRS Trust Fund held 92,322,967,354 in accumulated benefits for 34,760 DROP participants. Of these 34,760 DROP participants, 29,602 were active in the DROP with balances totaling $7,877,732,532. The remaining 4,558 participants were no longer active in the DROP with balances totaling $451,234,822 to be processed after ]trne 30, 2016, pending a qualifying event. Of the total accumulated DROP benefits, $471.,260,077 was due and payable as of ]une 30,2076. Administration. The Department of Management Services, Division of Retirement administers the FRS Pension Plan. The State Board of Administration (the "SBA") invests the assets of the Pension PIan held in the FRS Trust Fund. Costs of administering the FRS Pension PIan are funded from earnings on investments of the FRS Trust Fund. Reporting of the FRS Pension Plan is on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when the obligation is incurred. Contributions. All participating employers must comply with statutory contribution requirements. Section 121.031(3), Florida Statutes, requires an arurual actuarial valuation of the FRS Pension Plan, which is provided to the Legislature as guidance for funding decisions. Employer and employee contribution rates are established in Section 727.77, Florida Statutes. Employer contribution rates under the uniform rate structure (a blending of both the FRS Pension Plan and Investment Plan rates) are recommended by the actuary but set by the Legislature. Statutes require that any unfunded actuarial liability ('UAL") be amortized within 30 plan years. Pursuant to Section 121.031(3)(f), Florida Statutes, any surplus amounts available to offset total retirement system costs are to be amortized over a 10-year rolling period on a level-dollar basis. The balance of legally required reserves for a1l defined benefit pension plans at June 30, 2076, was $741,780,920,515. These funds were reserved to provide for total current and future benefits, refunds, and administration of the FRS Pension Plan. [Remainder of page intentionally teft blank] A-12 Effective lluly 7, 2011, both employees and employers of the FRS Fare required to make contributions to establish service credit for work performed in a regularly established position. Effective ]uly 1, 2002, the Florida Legislature established a uniform contribution rate system for the FRS, covering both the FRS Pension Plan and the FRS Investment Plan. The uniform rates for Fiscal Year 2015-16 are as follows: Membership Class Employee Contribution Rate Employer Contribution f{2fs(t) Total Contribution Rate Regular Special Risk Special Risk Administrative Support Elected Officers - ]udges Elected Officers - Le gislators/Attomeys/Cabinet Elected Officers - County, City, Special Districts Senior Management Service Deferred Retirement Option Program 3.00"/" 3.00 3.00 3.00 3.00 3.00 3.00 N/A 5.56% 20.34 37.25 34.01 M.70 40.57 79.73 71.22 8.56Yo 23.34 34.25 37.07 47.10 43.57 22.73 1.7.22 (1) These rates include the normal cost and unfunded actuarial liability contributions but do not include the 7.66% contribution for the HIS and the fee of 0.04% for administration of the FRS Investment Plan and provision of educational tools for both plans. Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiae Annual Financial Report for Fiscal Year Ended lune 30, 2016. [Remainder of page intentionally left blank] A-13 Pension Amounts for the FRS Pension Plan. Schedule of Changes in Net Pension Liability and Related Ratios(1) (in thousands) Total Pension Liability June 30, 2014 |une 30,2015 june 30,2016 Effect of assumption changes or inputs 7,256,045 0 Benefit payments (8,774,257) (10,201,501) Service cost Interest on total pension liabitity Effect of plan changes Effect of economic/demographic (gair'rs) or losses Net change in total pension liability Total pension liability, beginning Total pension liability, ending (a) Fiduciary Net Position Employer contributions Member contributions Lrvestment income net of investment expenses Benefit payments Administrative expenses Net change in plan fiduciary net position Fiduciary net position, beginning Fiduciary net position, ending (o) Net pension liability, ending = (a) - (b) Fiduciary net position as a o/o of total pension liability Covered payroll(2) $756,715,763 $767,370,735 767,030,999 $2,256,738 71,489,927 0 (M8,878) 5,939,635 t50,276,728 $2,774,047 71,,721,,563 0 1,620,863 5,254,972 156,1,75,763 $2,732,906 72,709,774 32,370 980,792 7,030,667 (10,624,925) 5,660,264 t67,370,735 (18,352) (78,074) (78,507) $2,1,90,424 682,507 22,872,286 (8,714,250) 16,952,675 't33,061.,677 $2,438,085 698,304 5,523,287 (10,201,s00) (7,559,898) t50,074,292 fi2,439,659 770,777 820,583 (1.0,624,925) (6,673,473) L48,454,394 $7s0,074,292 $1,48,454,394 $747,780,921 $6,101,477 96.09% $24,723,565 24.68% 972,976,341 92.00% $32,726,034 39.470/" $25,250,078 84.88% 33,21,4,277 75.O2%Net pension liability as a !" of covered payroll (1) This schedule will fill in to a ten-year schedule as results for new fiscal years are calculated. (2) For Iune 30, 201,4, covered payroll shown includes defined benefit plan actives and members in DROP, but excludes the payroll for FRS hrvest Plan members and payroll on which only UAL rates are charged. For ]une 30, 2075, and later, covered payroll shown includes the payroll for FRS L:rvestment Plan members and payroll on which only UAL rates are charged. Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiue Annual Financial Report for Fiscal Year Ended June 30,201.6. A-74 Actuarial Methods and Assumptions for the FRS Pension Plan. The total pension liability was determined by an actuarial valuation as of the valuation date of |uly \, 2076, calculated based on the discount rate and acfuarial assumptions below: June 30,2014 |une 30,2015 ]une 30,2016 Discount rate 7.65% 7.65% 7.60% Long-term expected rate of retum, net of investment 7.65% 7.65"/" 7.60"/o expense Bond Buyer General Obligation 2O-Bond Municipal N/A N/A N/A Bond Index Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensioe Annual Financial Rrport for Fiscal Year Ended lune 30, 201.6. The plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees in the determining the projected depletion date. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of refum. The actuarial assumptions used to determine the total pension liability as of ]une 30,2076, were based on the results of an actuarial experience study for the period July 1, 2008 - June 30,2013. Valuation Date July 7,2076 Measurement Date ]une 30, 2016 Asset Valuation Method Fair Market Value h:rflation 2.60% Salary increase induding ffiation 3.25% Mortality Generational RP-2000 with Projection Scale BB Actuarial cost method Lrdividual Entry Age Normal Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensioe Annual Financial Report for Fiscal Year Ended lune 30, 201.6. Sensitivity Analysis for the FRS Pension Plan. The following presents the net pension liability of the FRS, calculated using the discount rate of 7.60"/", as well as what the FRS's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.60%) or one percentage point higher (8.60%) than the current rate. Current 1% Decrease Discount Rate 1% Increase 6.60%7.60"/"8.60o/" Total pension liability $788,268,024,512 $767,030,999,000 9749,353,979,968 Fiduciary net position 747,780,920,5'1.5 747,780,920,515 748,454,393,902 Net pension liability $46,487,703,997 $25,250,078,485 97,573,059,453 Source: Florida Retirement System Pension PIan and Other State Administered Systems Comprehensiae Annual Financial Rrport for Fiscal Year Ended lune 30, 201.6. A-15 Retiree Health Insurance Subsidy The Retiree Health Insurance Subsidy ("HIS") Program is a cost-sharing multiple-employer defined benefit pension plan established under Section 772.363, Florida Statutes. The benefit is a monthly payment to assist retirees of state-administered retirement systems in paying their health insurance costs and is administered by the Division of Retirement within the Department of Management Services. For the State Fiscal Year ended ]une 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment equal to the number of years of creditable service completed at the time of retirement multiplied by $5. The payments are at least $30 but not more than $150 per month, pursuant to Section 772.363, Florida Statutes. To be eligible to receive a HIS benefit, a retiree under a state-administered retirement system must provide proof of health insurance coverage, which can include Medicare. The HIS Program is funded by required contributions from FRS participating employers as set by the Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the State Fiscal Year ended ]une 30, 2016, the contribution rate was 7.66"/o of payroll pursuant to Section 772.363, F.S. The state contributed 100% of its statutorily required contributions for the current and preceding two years. HIS contributions are deposited in a separate trust fund from which HIS payments are authorized. HIS benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide fulI subsidy benefits to all participants, the legislature may reduce or cancel HIS payments. [Remainder of page intentionally left blank] A-16 Pension Amounts for the HIS. Schedule of Changes in Net Pension Liability and Related Ratios(1) (in thousands) Total Pension Liability Service cost L:rterest on total pension liability Effect of plan changes Effect of economic/demographic (gains) or losses Effect of assumption changes or inputs Benefit payments Net change in total pension liabiJity Total pension liability, beginning Total pension liability, ending (a) Fiduciary Net Position Employer contributions Member contributions Lrvestment income net of investment exPenses Benefit payments Administrative expenses Net change in plan fiduciary net position Fiduciary net positiory beginning Fiduciary net position, ending @) Net pension liability, ending: (a) - (b) Fiduciary net position as a "/" of total pension liability Covered payroll Net pension liability as a l" of covered payroll ]une 30, 2014 ]une 30,2015 ]une 30,2016 $790,377 409,907 0 0 386,383 $277,579 405,441 0 $256,770 390,757 0 0 (30,826) 607,698 1,352,459 (407,276) (425,086) (M9,857) 579,385 805,572 r,579,243 8,864,2M 9,443,629 70,249,207 $9,M3,629 $70,249,201. $71,769,M5 $342,566 0 219 (407,275) (54) $382,454 0 208 (42s,08s) (188) $572,564 0 565 (M9,857) (188) 63,0U 50,774 (64,5M) 757,929 (42,617) 93,385 $93,38s $50,774 $113,859 $9,350,2M 0.99% 29,676,340 31.51% 70,798,427 0.50% 30,340,49 33.67% 77,654,586 0.97% 30,875,274 37.75"/" (r) This schedule will fill in to a ten-year schedule as results for new fiscal years are calculated. Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiue Annual Financial Report for Fiscal Year Ended lune 30, 20L6. A-77 Actuarial Methods and Assumptions for the HIS. The total pension liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and then was projected to the measurement date. Any significant dranges during this period have been reflected as prescribed by GASB 67. The same demographic and economic assumptions that were used in the Florida Retirement System Actuarial Valuation as of July 7, 2076 ("funding valuation") were used for the HIS program, unless otherwise noted. Lr a given membership class and tier, the same assumptions for both FRS Investment Plan members and for FRS Pension Plan members were used. june 30,2014 ]une 30, 2015 Iune 30,2016 Discount rate Long-term expected rate of retum, net of investment expense Bond Buyer General Obligation 20-Bond Municipal Bond Index Valuation Date Measurement Date Inflation Salary increase including inflation Mortality Actuarial cost method l:uJy 1,,2076 ]une 30, 2016 2.60% 3.25% Generational RP-2000 with Projection Scale BB Individual Entry Age 4.29% N/A 4.29% 3.80"/o N/A 3.80% 2.85"/o N/A 2.85% Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiae Annual Financial Rrport for Fiscal Year Ended June 30,201,6. Lr general, the discount rate for calculating the total pension liability under GASB 67 is equal to the single rate equivalent to discounting at the long-term expected rate of retum for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-Bo basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the plan sponsor. The discount rate used in the 2015 valuation was updated from 3.80% to 2.85o/", reflecting the change in the Bond Buyer General Obligation 20- Bond Municipal Bond Index as of ]une 30,2076. The actuarial assumptions used to determine the total pension iiability as of ]une 30, 2016, were based on the results of an actuarial experience study for the period lu[y 7,2008 - ]une 30, 2013. Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiae Annual Financial Report for Fiscal Year Ended lune 30, 2076. Sensitivilv Analysis for the HIS. The following presents the net pension liability of the HIS, calculated using the discount rate of 2.85o/o, as well as what the HIS's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (1.85%) or one percentage point higher (3.85%) than the current rate. A-18 1% Decrease 7.85% Current Discount Rate 2.8s% 1% Increase 3.8s% Total pension liability Fiduciary net position Net pension liability $1,3,4U,31,6,752 1 13,859,055 $11,768,M4,807 113,859,05s $70,344,364,746 113,859,055 $73,370,457,697 $77,654,585,746 $70,230,505,691) Source: Florida Retirement System Pension Plan and Other State Administered Systems Comprehensiae Annual Financial Report for Fiscal Year Ended June 30,201.6. FRS Investment Plan The State Board of Administration administers the defined contribution plan officially titled the FRS Investrnent Plan. The Florida Legislature establishes and amends the benefit terms of the p1an. Retirement benefits are based upon the value of the member's account upon retirement. The FRS Investment Plan provides vesting after one year of service regardless of membership class. If an accumulated benefit obligation for service credit originally earned under the FRS Pension Plan is transferred to the FRS Lrvestment PIan, the years of service required for vesting under the Pension Plan (including the service credit represented by the transferred funds) is required to be vested for these funds and the earnings on the funds. The employer pays a contribution as a percentage of salary that is deposited into the individual member's account. Effective I;.:Jy 1.,2011, there is a mandatory employee contribution of 3.00%. The FRS Investment Plan member directs the investment from the options offered under the plan. Costs of administering the plan, including the FRS Financial Guidance Program, are funded through an employer assessment of payroll and by forfeited benefits of plan members. After termination and applying to receive benefitt the member may rollover vested funds to another qualified plan, structure a periodic payment under the FRS Investment Plan, receive a lump-sum distributiory or Ieave the funds invested for future distribution. Disability coverage is provided; the employer pays an employer contribution to fund the disability benefit which is deposited in the FRS Trust Fund. The member may either transfer the account balance to the FRS Pension Plan when approved for disability retirement to receive guaranteed li-fetime monthly benefits under the FRS Pension Plan, or remain in the FRS Investment Plan and rely upon that account balance for retirement income. As of |une 30, 2076, the State reported the following pension amounts related to the FRS Lrvestment Plan: Pension Expense(1)(2) Forfeitures Pension Liability $56,'1,48,707 5,756,M7 133,881 (t) Pension expense excludes the required UAL which is recognized in the FRS statement of contributions. (2) The amount of forfeitures is not reflected in pension expense recognized by the State and issued to offset administrative costs. Source: Florida Comprehensiae Annual Financial Report for Fiscal Year ended June 30, 20L6. A-79 Schedule of Funding Progress for the Florida Retirement System{r) (000 omitted in dollar amounts) Actuarial Valuation Date 7luo8 7lu09?) 71u70(d) 71u77 71u72 71u73 71u74 71u75 71u1.6 Unfunded ML (UAAL) (b-a) $(6,633,333) 77,670,905 78,722,71,1, 1.8,956,422 20,757,875 22,M5,339 27,509,307 22,353,397t6) 24,922,9976) UAAL As %of Covered Payroll &-a)/c (24.67)% 66.27 72.67 73.80 82.31. 97.36 87.00 68.30 74.96 Actuarial Actuarial Accrued Value Liability (AAL) of Assets - Entry Age(a)o) $730,720,547 $124,087,214 778,764,692 736,375,597 720,929,666 739,652,377 726,078,053 745,034,475 127,897,797 149,049,596 737,680,615 754,725,953 738,627,207 760,1,30,502 743,795,537G) 165,549,9296) 745,451.,6\2$) 770,374,6096) Funded Covered Ratio Payroll (a/b) (c)tzr 10s.35% $26,897,340 87.09 26,573,796 86.59 25,765,362 86.93 25,686,1.39 86.38 24,497,377 85.M 24,568,642 86.57 24,723F65(s) 86.50 32,726,034 85.37 33,274,277 Source: The Floida Retirement System, Pension Plan €t Other State-Administered Systems, Annual Report: luly 1., 2072 - lune 30, 20L3; Annual Report: luly L, 201.3 - June 30, 2074; Annual Report: luly 1, 2014 - lune 30, 2075 nnd Annunl Report: luly 1,2015 -lune 30,2015. Source: The Florida Retirement System Pension Plan ActuarialValuation Report.tat (1)Calculations are based on GASB 27 requirements including traditional funding of DROP. (z) For the plan year beginning on the Actuarial Valuation Date shown, includes payroll for members in DROP, Teachers' Retirement. System and hstitute of Food and Agricultural Sciences. (3) As rePorted in JuIy 1, 2009 actuarial valuation report, before impact of House Btll 479 (2009). (a) As reported in July 1, 2010 actuarial valuation report, before impact of Senate Bill 2100 (2011). (5)krcludes Deferred Retirement Option Program (DROP) payroll. The information presented in the above schedule was determined as part of the actuarial valuations performed at the dates indicated. Additional information as of the latest actuarial valuation is as follows: Florida Retirement System Assumptions Valuation Date Actuarial cost method Amortization method Equivalent Single amortization period(1) Asset valuation method Actuarial assumptions: Investment rate of retum Projected salary increases Includes inflation at Cost-of -Living Adjustments luly 7,2076 Entry Age Normal Level Percentage of Pay, Open 30 years S-year Smoothed Method 7.60% 3.25o/o 2.60% 3.0Oo/" (1) Used for GASB Statement 27 reporting purposes. Source: The Floridn Retirement System, Pension Plan €t Other State-Administered Systems, Annual Report: July 1, 2015 - lune 30,201.5. A-20 The County's liability for participation in the FRS is limited to the payment of the required contribution at the rates and frequencies established by law on future payrolls of the County. Effective ]uly 1, 2077, all members of FRS are required to contribute 3% of their gross compensation toward their retirement. The County's contributioru induding employee contributions, to the Pension PIan totaled $8,007,879 for the Fiscal Year ended September 30,2076. Legislation Relating to FRS The Florida Legislature passed Senate Bitl2100 ("SB 2100") during its 2011 session and was signed by Govemor Rick Scott on May 20,2011. SB 2100 makes significant changes to the FRS with respect to employee contributions and employer contributions, among other items. Effective luly 1, 2077, aJJ. members of FRS were required to contribute 3o/" of their gross compensation toward their retirement. In addition, the legislation reduced the required employer contribution rates for each membership dass and subclass of the FRS. Additionally, the biil eliminated the cost of living adjustment for all FRS employees for service eamed on or after luly 7, 2011, although the bill does contemplate reinstatement of the adjustment in 2016 r:nder certain circumstances. SB 2100 makes other changes to the FRS that only apply to employees who initially eruoll on or after ]uly '1., 2077, including: (1) the average final compensation upon which retirement benefits are calculated are based on the eight highest (formerly five highest) fiscal years of compensation prior to retiremen! (2) the DROP is maintained but the interest accrual rate is reduced fuom 6.5o/o to 7.3"/"; (3) the normal retirement age is increased from 62 to 65; and (4) the years of creditable service is increased from 30 to 33 and the vesting period is increased to eight years (formerly six). During the Florida Legislature's 2013 session, the Florida Legislature passed Senate Bill 1810 ("SB 1810"). SB 1810 establishes the contribution rates paid by employers participating in the FRS. These rates are intended to fund the full normal cost and amortization of the unfunded actuariat liabitity of the FRS. The FRS will receive approximately $885 million of additional revenues on an annual basis beginning ltly'),,2013. SB 1810 also increases the contributions paid by employers participating in the retiree health insurance subsidy program. The Retiree Health Insurance Trust Fund will receive roughly $42 mi-llion of additional revenues on an annual basis beginrting July 1, 2013. SB 1810 was signed into law by the Govemor and became effective l;Jy L,2013. The new rates include the additional amount that employers must contribute to the Retiree Health hrsurance Trust Fund and such amounts are included in the County's budget. During the Florida Legislature's 2014 sessiory the Florida Legislature passed Senate Bilt 2506 ("SB 2506"). SB 2506 establishes the contribution rates paid by employers participating in the FRS beginning ]uly 1, 2014. These rates are intended to fund the fulI normal cost and amortization of the UAL of the FRS. These increased contribution rates will provide an additional $131.5 million of revenue on an annual basis beginnin g luly 7, 2074. During the Florida Legislature's 2016 session, the Florida Legislature passed Senate Bill 7012 ("SB 7012"). SB 7012 authorizes payment of death benefits to the surviving spouse or children of Special Risk Class member killed in line of duty; establishes qualifications and eligibility requirementsi prescribes method of calculating benefif speci-fies circumstances under which benefit payments are terminated; requires the State Board of Administration to transfer moneys to fund survivor benefit payments; adjusts employer contribution rates be ginnin g fly 1, 201 6. A-27 Other Post Employment Benefits Plan Description. The County has two single-employer benefit plans, the County plan (the "County Plan") and the St. Lucie Sheriff's Office plan (the "Sheriff's Plan"), both administered by the County. Pursuant to the provision of the Section 772.0807, Florida Statutes, under the County Plan, former employees who retire from the County, and eligible dependents, may continue to participate in the County's respective medicaVprescription, vision, dental and life insurance plans as long as they pay the full premium applicable to coverage elected. The County amended its poliry on October 7,2004, for employee retirements after that date, to provide for payment of the monthly single premium for the employee and $100 toward the cost of eligible dependent coverage, if covered at the time of retiremen! for employees who meet the following eligibility requirements: . Active full-time employee with 10 years of continuous service with the County by the health plan at the time of retirement; o Either 30 years of service under the FRS, vested under the FRS and normal retirement age or 62 years old; and . Monthly premiums will be paid until the retiree becomes Medicare/\{edicaid eligible. The $100 supplement for dependent coverage will continue until the dependent become eligible for coverage under another group plan or becomes MedicareMedicaid eligible. The County further amended its policy in Fiscal Year 2074 to limit the above post-employment benefit to employees hired before October 1,2073. Under the Sheriff's Plan, the County provides medical/prescription, vision and dental benefits for employees and sworn officers upon retirement and subsidizes a portion of the premiums. Retirees with at least 25 years or more of service under the Sheriff are offered free retiree health coverage until they attain eligibility for Medicare benefits. The provisions of the Sheriff's Plan may be amended through negotiations between the St. Lucie Sheriff's Office and its employee bargaining units. The County subsidizes the premium rates for the medicafprescription plan paid by the retirees by allowing them to participate in the plan at the blended group premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. Retirees are required to enroll in the Federal Medicare program for their primary coverage as soon as they are eligible. The vision, dental and life insurance plans do not result in an implicit subsidy. Funding Poligv. The County plans to fund this postemployment benefit on a pay-as-you go basis. As of September 30,201.5,49 retirees received medical/prescription benefits in the County Plan and 61 retirees received medical/prescription benefits in the Sheriffs Plan. The County provided 92,254,994 toward the annual OPEB cost for the County Plan and $2,950,243 toward the annual OPEB cost for the Sheriff's Plan. Annual OPEB Cost and Net OPEB Obligation. The following table shows the Count5/s annual OPEB cost for the year, the amount contributed to the plan, and changes in the County's net OPEB obligation: A-22 Description County Plan Amount Sheriff's Plan Amount Annual Required Contribution L:rterest on Net OPEB Obligation Adjustment to Annual Required Contribution Annual OPEB Cost (Expense) Contribution Toward the OPEB Cost Increase in Net OPEB Obligation Net OPEB Obligation, Beginning of Year NET OPEB Obligation, End of Year $2,254,994 758,749 (728,974) $ 2,950,243 638,138 (725,757) 2,2U,829 (82s,s26) 2,863,224 (929,006\ 7,459,303 18,968,737 1,,934,278 1,5,953,455 $77,887,673 Source: Comprehensiae Annual Financial Report Fiscal Year Ended September 30, 20L6. The Count/s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation as of September 30,2076, were as follows: County Plan: Annual OPEB Cost 92,522,545 2,\99,626 2,2U,U9 Annual OPEB Cost $2,947,936 3,@6,2ffi 2,863,224 $ 20,428,034 Percentage of Annual OPEB Cost Contributed 20.81% 32.11. 36.13 Percentage of Arurual OPEB Cost Contributed 32.M% 37.76 32.45 NetOPEB Oblieation $77,475,939 78,968,737 20,429,0u NetOPEB Oblisation 974,026,327 15,953,455 77,887,673 Fiscal Year 2013174 201.4115 2075176 Sheriff's Plan Fiscal Year 2073174 2074175 201s11,6 Source: Comprehensiae Annual Financinl Report Fiscal Year Ended September 30, 2016. Funded Status and Funding Progress. Funded Status and Funding Progress of the Countv Plan as of October 7,201,4 is as follows: A-23 Actuarial accrued liability Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Fund ratio Covered payroll (active plan members) UAAL as a percentage of covered payroll Actuarial accrued liability Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Fund ratio Covered payroll (active plan members) UAAL as a percentage of covered payroll $24,165,595 0 $24,765,595 Source: Comprehensiae Annual Financial Report Fiscal Year Ended September 30,201.6. Funded Status and Funding Progress of the Sheriff's Plan as of ]uly 7,2075 is as follows: 0Y" $ 42,704,035 s7.40% $ 31,,780,1,71, 0 $ 37,780,\77 0% $ 34,393,1s3 92.40% Source: Comprehensiae Annual Financial Report Fiscal Year Ended September 30,2016. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment and terminatiory mortality, and the healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions. Projection of benefits for financial reporting purposes are based on the substantive plan provisions, as understood by the employer and participating members, and include the type of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and participating members. The actuarial methods and assumptions used include techniques that are designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of calculations. Sherriff's PIan In the report for the OPEB actuarial valuation performed as of ]uly 7, 2075, the results were derived using the entry age actuarial cost method with an amortization of the unfunded actuarial accrued liability as a level percent of expected payroll. The amortization period used is closed, and the remaining amortization period at ]uly 1, 2075, is 22 years. Because the OPEB liability is currently unfunded, the actuarial assumptions include a 4.75% ultimate trend rate, a 3.0 percent inflation rate, a 4.0 percent investment return, and a4.0"/"-7.8% percent projected salary increase. Compared to A-24 the previous valuation, the unfunded actuarial accrued liability and the annual OPEB cost increased moderately. The actuarial assumption annual healthcare cost trend rate for Fiscal Year 2075-76 is 7.0 percent. FLORIDA CONSTITUTIONAL LIMITATIONS AND PROPERTY TAX REFORM Several constitutional and legislative amendments affecting ad valorem taxes have been approved by voters in the past including the following: Saae Our Homes Amendment By voter referendum held on November 3, 1992, Article VII, Section 4 of the State Constitution was amended by adding thereto a subsection which, in effect, Iimits the increases in assessed just value of homestead property to the lesser of (1) three percent of the assessment for the prior year or (2) the percentage change in the Consumer Price Index for all urban consumers, U.S. City Average, all items 7967:700, or successor reports for the preceding calendar year as initially reported by the United States Department of Labor, Bureau of Labor Statistics. Further, the amendment provides that (1) no assessment shall exceed just value, (2) after any change of ownership of homestead property or upon termination of homestead status such property shall be reassessed at just value as of ]anuary 1 of the year following the year of sale or change of status, (3) new homestead property shall be assessed at just value as of ]anuary 7 of the year following the establishment of the homestead, and (4) changes, additions, reductions or improvements to homestead shall initially be assessed as provided for by general law, and thereafter as provided in the amendment. This amendment is known as the "Save Our Homes Amendment." The effective date of the amendment was |anuary 5, 7993 and, pursuant to a ruling by the Florida Supreme Court, it began to affect homestead property valuations commencing |anuary 7, 1995, with7994 assessed values being the base year for determining compliance. Limitations on State Reoenue Amendment In the 1994 general election, State voters approved an amendment to the State Constitution which is commonly referred to as the "Limitation On State Revenues Amendment." This amendment provides that State revenues collected for any fiscal year shall be limited to State revenues allowed under the amendment for the prior fiscal year plus an adjustrnent for growth. Growth is defined as an amount equal to the average annual rate of growth in State personal income over the most recent twenty quarters times the State revenues allowed under the amendment for the prior fiscal year. State revenues collected for any fiscal year in excess of this limitation are required to be transferred to a budget stabilization fund until the fund reaches the maximum balance specified in the amendment to the State Constitution, and thereafter is required to be refunded to taxpayers as provided by general law. The limitation on State revenues imposed by the amendment may be increased by the State Legislature, by a two-thirds vote in each house. The term "State revenues," as used in the amendment, means taxes, fees, Licenses, and charges for services imposed by the State Legislature on individuals, businesses, or agencies outside state govemment. However, the term "State revenues" does not include: (1) revenues that are necessary to meet the requirements set forth in documents authorizing the issuance of bonds by the State; (2) revenues that are used to provide matching funds for the federal Medicaid program with the exception of the revenues used to support the Public Medical Assistance Trust Fund or its successor progrErrn and with the exception of State matching funds used to fund elective expansions made after lluly -)., D9a; Q) proceeds A-25 from the State lottery retumed as prizes; (4) receipts of the Florida Hurricane Catastrophe Fund; (5) balances carried forward from prior fiscal years; (6) taxes, licenses, fees and drarges for seryices imposed by loca| regional, or school district governing bodies, or (7) revenue from taxes, Licenses, fees and charges for services required to be imposed by any amendment or revision to the Florida Constitution after July 1, 1994. This amendment took effect on |anuary 7, 7995, and was first applicable to the State's fiscal year 7995-7996. Millas e Rollb ack Le s isl at io n In2007, the Florida Legislature adopted Chapter 2007-321, Laws of Florida, a property tax plan which significantly impacted ad valorem tax collections for Florida local governments. One component of the adopted legislation required counties, cities and special districts to rollback their millage rates for the 2007-2008 fiscal year to a level that with certain adjustnents and exceptions, would generate the same level of ad valorem tax revenue as in fiscal year 2006-2007; provided, however, depending upon the relative growth of each local govemment's own ad valorem tax revenues from 2001 to 2006, such rolled back millage rates were determined after first reducing 2006-2007 ad valorem tax revenues by zero to nine percent (0% to 9%). Lr additioru the legislation Iimited how mudr the aggregate amount of ad valorem tax revenues may increase in future fiscal years. A local govemment may override certain portions of these requirements by a supermajority, and for certain requirements, a unanimous vote of its goveming body. Constitutionql Amendments Related to Ad Valorem Exemptions On january 29, 2008, in a special election held in conjunction with the State's presidential primary, the requisite number of voters approved amendments to the Florida Constitution exempting certain portions of a property's assessed value from taxation. These amendments were effective for the 2008 tax year (fiscal year 2008-2009 for local goverrunents). The following is a brief summary of certain important provisions contained in such amendments: 7. Provides for an additional exemption for the assessed value of homestead property between $50,000 and $75,000, thus doubling the existing homestead exemption for property with an assessed value equal to or greater than $75,000. 2. Permits owrrers of homestead property to transfer their Save Our Homes Amendment benefit (up to $500,000) to a new homestead property purchased within two years of the sale of their previous homestead property to which such benefit applied if the just value of the new homestead is Breater than or is equal to the just value of the prior homestead. ff the iust value of the new homestead is less than the just value of the prior homestead, then owners of homestead property may transfer a proportional amount of their Save Our Homes Amendment benefit, such proportional amount equaling the just value of the new homestead divided by the just value of the prior homestead multiplied by the assessed value of the prior homestead. As discussed above, the Save Our Homes Amendment generally limits annual increases in ad valorem tax assessments for those properties with homestead exemptions to the lesser of three percent (3%) or the annual rate of inflation. 3. Exempts from ad valorem taxation $25,000 of the assessed value of property subject to tangible personal property tax. A-26 4. Limits increases in the assessed value of non-homestead property to 70% per year, subject to certain adjustrnents. The cap on increases would be in effect for a 10-year period, subject to extension by an affirmative vote of electors. The Save Our Homes Amendment assessment cap and portability provisions described above have been subject to legal challenge. The plaintiffs in such cases have argued that the Save Our Homes Amendment assessment cap constifutes an unlawful residency requirement for tax benefits on substantially similar property in violation of the equal protection provisions of the Florida Constitution and the Privileges and Immunities Clause of the Fourteenth Amendment to the United States Constitution. The plaintiffs also argued that the portability provision simply extends the unconstitutionality of the tax shelters granted to long-term homeowners by the Save Our Homes Amendment. The courts in each case have rejected such constitutional arguments and upheld the constitutionality of such provisions; however, there is no assurance that any future challenges to such provisions will not be successful. In addition to the legislative activity described above, the constitutionally mandated Florida Taxation and Budget Reform Commission (required to be convened every 20 years) (the "TBRC") completed its meetings on April 25,2008 and placed several constitutional amendments on the November 4, 2008 General Election ballot. Three of such amendments were approved by the voters of Florida, whictu among other things, do the following: (a) allow the Florida Legislature, by general law, to exempt from assessed value of residential homes, improvements made to protect property from wind damage and installation of a new renewable energy source device; (b) assess specified working waterfront properties based on current use rather than highest and best use; (c) provide a property tax exemption for (i) real property that is perpetually used for conservation &eBan in 2010), and (ii) land not perpetually encumbered, require the Florida Legislature to provide classification and assessment of land use for conservation purposes solely on the basis of character or use. Exemption for DElolted Military Personnel Lr the November 2010 General Election, voters approved a constitutional amendment which provides an additional homestead exemption for deployed military personnel. The exemption equals the percentage of days during the prior calendar year that the military homeowner was deployed outside of the United States in support of military operations designated by the Legislature. This constitutional amendment took effect on ]anuary 7,201,1,. Lr March of 2076, TIB 7023 was approved by the Govemor, which updated the military operations specified for eligibility under this exemption. The bill also extended the application deadline for qualifying service members. Other Proposals Affectins AdValorem Taxation During the Florida Legislature's 2011 Regular Session, it passed Senate ]oint Resolution 592 ("SfR 592"). SIR 592 allows totally or partially disabled veterans who were not Florida residents at the time of entering mi.litary service to quality for the combat-related disabled veteran's ad valorem tax discount on homestead property. The amendment took effect on |anuary 1,,2013. During the Florida Legislature's 2012 Regular Sessiory it passed House ]oint Resolution 93 ("HfR 93"). HIR 93 allows the Florida Legislature to provide ad valorem tax relief to the surviving spouse of a veteran who died from service-connected causes while on active duty as a member of the United States Armed Forces and to the surviving spouse of a first responder who died in the line of duty. The amount A-27 of tax relief, to be defined by general law, can equal the total amount or a portion of the ad valorem tax otherwise owed on the homestead property. The amendment took effect on fanuary 7,2073. Also during the Florida Legislature's 2012 Regular Sessiory it passed House |oint Resolution 169 ("HIR 169") allowing the Florida Legislature by general law to permit counties and municipalities, by ordinance, to grant an additional homestead tax exemption equal to the assessed value of homestead property to certain low income seniors. To be eligible for the additional homestead exemption the county or municipality must have granted the exemption by ordinance; the property must have a just value of less than $250,000; the owner must have title to the property and maintained his or her permanent residence thereon for at least 25 years; the owner must be age 65 years or older; and the owner's annual household income must be less than $20,000. The additional homestead tax exemption authorizedby HIR 169 would not apply to school property taxes. This bill was approved as an amendment to the Florida Constitution by the voters on November 6,2072. Dotiog the Florida Legislature's 2013 Regular Session, it passed Senate Bill 1830 ("SB 1830"), which was signed into law by the Governor and creates a number of changes affecting ad valorem taxation and which became effective ]uly 1, 2013. Firsf SB 1830 provides long-term lessees the ability to retain their homestead exemption and related assessment Limitations and exemptions in certain instances and extends the time for property owners to appeal value adjustment board decisions on transfers of assessment Limitations to conform with general court filing timeframes. Second, SB 1830 inserts the term "algaculture" in the definition of "agricultural purpose" and iaserts the terms "aquacultural crops" in the provision specifying the valuation of certain annual agricultural crops, nonbearing fruit trees and nursery stock. Third, SB 1830 allows for an automatic renewal for assessment reductions related to certain additions to homestead properties used as living quarters for a parent or grandparent and aligns related appeal and penalty provisions to those for other homestead exemptions. Fourth, SB 1830 deletes a statutory requirement that the owner of the property must reside upon the property to qualify for a homestead exemption. Fifth, SB 1830 clarifies the property tax exemptions counties and cities may provide for certain low income persons age 65 and older. Sixth, SB 1830 removes a residency requirement that a senior disabled veteran must have been a Florida resident at the time they entered the service to qualify for certain property tax exemptions. Seventh, SB 1830 repeals the ability for certain limited liability partnerships to qualify for the affordable housing property tax exemption. Eighth, SB 1830 exempts property used exdusively for educational purposes when the entities that own the property and the educational facility are owned by the same natural persons. During the Florida Legislature's 2013 Regular Sessiory the Florida Legislature passed House BilI 277 ("HB 277"), which was signed into law by the Govemor. HB 277 provides that certain renewable energy devices are exempt from being considered when calculating the assessed value of residential property. llB 277 only applies to devices installed on or after |anuary 1.,2013. HB 277 took effect on July '1,, 2073. The 2016 Florida Legislature passed ]oint Resolution 193 (CS/HJR 193), which proposes an amendment to the Florida Constitution to authorize the Legislature, by general law, to exempt the assessed value of solar devices or renewable energy source devices subject to tangible personal property tax from ad valorem taxation, and to prohibit the consideration of the installation of a solar device or a renewable energy source device in determining the assessed value of real property for the purpose of ad valorem taxatiory with a designated effective date of |anuary 1,201,8 and an expiration date of December 31,,2037. This CS/HIR 193 is tied to House Bill CS/195, approved by the Govemor on March 25,2076 and the electors of Florida on August 30,2076. A-28 Also during the Florida Legislature's 2013 Regular SessiorL the Florida Legislature passed House BiIl 1193 ("FIB 1193"), which was signed into law by the Governor. FIB 1193 eliminated three ways in which the property appraiser had authority to reclassily agricultural land as non-agricultural land. Additionally, HB 7793 relieves the value adjustment board of the authority to review the property appraisers. HB 1193 is effective immediately and will apply retroactively to January 7,201,3. At present, the impact of SB 7830, HB 277 and HB 1193 on the County's finances cannot be accurately ascertained. During the 2016 Regular Session, another |oint Resolution (CS/FIIR 1009) passed, proposing an amendment to the Florida Constitution to grant a fuIl or partial property tax exemption on homestead property to first responders who are totally and permanently disabled as a result of an injury or injuries sustained in the line of duty. The amendment to the constitution was approved by more than 60% of the voters in the 2016 General Election, the effective date is ]anuary 1,2077. The 2016 Legislature further passed an amendment in ]oint Resolunon 275 (CS/HIR 275), clarifying the calculation for use in determining the just value for purposes of homestead tax exemption for certain senior, long-term, low-income residents. The amendment was approved by more than 60% of the voters in the 2016 General Election, the amendment will take effect on ]anuary L,2017, and operates retroactively to ]anuary L, 20'13, for persons who received the exemption prior to ]anuary 1, 2077. Tlte CSAIIR 275 is tied to House 8i11,277, approved by the Govemor on March 25,2076, which states essentially the same intent and purpose, and has the same effective date of CS|HIR271. In the 2017 State legislative session, which concluded on May 8,2017, the State legislature passed House ]oint Resolution 7105 which proposes an amendment to Section 6, Article VII of the State Constitution that would increase the homestead exemption by exempting the assessed valuation of homestead property greater than $100,000 and up to $125,000 for all levies other than school district levies. If approved by the voters in November,2078, such amendment would be effective beginning with the 2019 tax roll. In the 2017 State legislative session, the State legislature passed House ]oint Resolution 21 which proposes an amendment to Section 4, Article VII of the State Constitution to permanently retain the current provisions which would limit the property tax assessment increases on specified non-homestead real property, except for school district levies, to 70% each year. If approved by the voters in November, 2018, such amendment would be effective beginning with the 2019 tax roll. Lesislatiae Provosals Relatins to Ad Valorem Taxation During recent years, various other legislative proposals and constitutional amendments relating to ad valorem taxation and revenue lirnitation have been introduced in the State Legislature. Many of these proposals provide for new or increased exemptions to ad valorem taxation, Iimit increases in assessed valuation of certain types of property or otherwise restrict the ability of local govemments in the State to levy ad valorem taxes at recent, historical levels. There can be no assurance that similar or additional legislation or other proposals will not be introduced or enacted in the future that would, or might apply to, or have a material adverse effect upory the County's finances. A-29 ITHIS PAGE INTENTIONALLY LEFT BI-ANT] APPENDIXB INDEPENDENT AUDITORS' REPORT OF TTIE COUNTY [T}[IS PAGE INTENTIoNALLY LEFT BLANK] COMPREHENS ANNUAL FINANCIAL REPORT St. Lucie County, Floridq "', t,'"rt.r; li , JOSEPH E. SMITH Clerk of the Circuit Court St. Lucie County &r Comprehensive Annucrl Finqrciol Report lor the Fisccrl Yecs Ended September 30, 2016 ST. LUCIE GOUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 The Honorable Joseph E. Smith Clerk of the Circuit Court Prepared By Clerk of the Circuit Court, Financial Operations Department Shai Francis, CPA, CGFO, CGMA Chief Operating Officer of Financial Services THIS PAGE INTENTIONALLYLEFT BLANK TABLE OF CONTENTS LETTER OF TRANSMITTAL ELECTED OFFICIALS ORGANIZATIONAL CHART CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS: Govern ment-wide Financial Statements : Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Transportation Trust Fund Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Fine and Forfeiture Fund Paqe(s) V xiv XV xvi 1 5 17 18 20 22 24 28 26 27 29 TABLE OF CONTENTS - CONTINUED FINANCIAL SECTION - CONTINUED BASIC FINANCIAL STATEMENTS - CONTINUED: Fund Financial Statements: Statement of Fund Net Position - Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Fund Net Position - Agency Funds Notes to Financial Statements REQUIRED SUPPLEMENTAL INFORMATION : Schedule of Funding Progress Schedule of Proportionate Share of Net Pension Liability Schedule of Contributions COMBINING AND INDIVIDUAL FUND STATEMENTS: Nonmajor Governmental Fund Descriptions Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Budgetary Comparison Schedules - Governmental Funds Nonmajor Enterprise Fund Descriptions Combining Statement of Fund Net Position - Nonmajor Enterprise Funds Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - Nonmajor Enterprise Funds Combining Statement of Cash Flows - Nonmajor Enterprise Funds Paqe(s) 30 32 34 36 37 165 90 91 92 94 100 112 124 164 166 167 TABLE OF CONTENTS - GONTINUED FINANCIAL SEGTION - CONTINUED Combining Statement of Changes in Assets and Liabilities - Agency Funds Paqe(s) 169 180 182 184 186 Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 Schedule 8 Schedule 9 Schedule 10 Schedule 11 Schedule 12 Schedule 13 Schedule 14 Schedule 15 Net Position by Component - Last Ten Fiscal Years 172 Changes in Net Position - Last Ten Fiscal Years 174 Fund Balances, Governmental Funds - Last Ten FiscalYears 178 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Tax Revenues by Source, Governmental Funds - Last Ten Fiscal Years Assessed Valuation and Estimated Actual Values of Taxable Property - Last Ten Fiscal Years Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Principal Property Taxpayers - Current Year and Nine Years Ago Property Tax Levies and Collections - Last Ten Fiscal Years Computation of Legal Debt Margin - September 30, 2015 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years Ratios of Net General Bonded Debt - Last Ten Fiscal Years Direct and Overlapping Governmental Activities Debt - September 30, 2016 Pledged-Revenue Coverage - Last Ten Fiscal Years Demographic and Economic Statistics - Last Ten Years 188 189 190 192 194 195 196 200 iii TABLE OF CONTENTS - CONTINUED STATISTIGAL SECTION . GONTINUED Paqe(s) Schedule 16 Principal Employers - Current Year and Nine Years Ago 201 Schedule 17 Fulltime Equivalent County Government Employees by Function/Program - Last Ten Fiscal Years 202 Schedule 18 Operating lndicators by Function/Program - Last Ten FiscalYears 204 Schedule 19 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years 214 FEDERAL AND STATE GRANTS: lndependent Auditor's Report on lnternal Control over Financial Reporting and on Compliance and other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 217 lndependent Auditor's Report on Compliance for each Major Federal Program and Report on lnternal Control over Compliance required by Uniform Guidance and Chapter 10.550 Rules of the Auditor General 219 Schedule of Expenditures of Federal Awards and State Projects 222 Notes to Schedule of Expenditures of Federal Awards and StateProjects 227 Schedule of Findings and Questioned Cost - Federal Awards and State Projects 229 iv JosBns E. Snats ' Cr,enx Or Tne Crncurr Courr Sr. Lucrn Coulcry March 30,2077 To the Citizens of St Lucie County, Florida and the Honorable Members of the Board of County Commissionersr The Comprehensiue Annual Financial Report (C,qFR] of St. Lucie County, Florida for the fiscal year ended September 30, 2016, is submitted foryour review. State law requires that a complete set of hnancial statements be published within nine months after the fiscal year end and presented in conformance with Generally Accepted Accounting Principles ["GAAP') as applicable to governmental entities and audited in accordance with generally accepted auditing standards by Iicensed, independent certified public accountanh. This report is issued to fulfill those statutory requirements. The CAFR was prepared bythe Financial Operations Department of the Clerk of the Circuit Court in accordance rvith Section 218-37., Florida Stahrtes. Responsibility for both the accuracy ofthe data presented, and the completeness and hirness ofthe presentation, including all disclosures, rests with the management ofthe county- We believe the financial and statistical information presented is accurate in all material respects.It is set forth in a manner designed to fairly present the financial position and results of operations of Su Lucie County as measured by the financial activity of its various funds. The report contains all of the disclosures necessary to enable the reader to gain the maximum understanding of the county's [inancial affairs. The county has established a comprehensive internal control framervork to provide reasonahle, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and ensure that the financial records for preparing financial statements and maintaining accountability for assets are reliable. The concept of reasonable assurance recognizes that the cost of controls should not e.rceed the benefrts likely to be derived and that the evaluation of costs and beneflts requires judgments and estimates by management. All internal control evaluations occur within the above ftamework We believe that the county's internal controls adequately safeguard assets and provide reas onable assurance of properly recorded fi nancial transactions. ln accordance with Sections 1 1.45 and 1 25.01, Florida Statutes, the St. Lucie Coungr, Florida financial statements were audited by Berger, Toombs, Elam, Gaines & Franh Certified Public Accountants, PL. This firm is independently licensed to perform the functions of certified public accountants. In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Single Audit Acts of the State of Florida and the government of the United States of America. The standards governing single audit engagements require the independent auditor to report on t}te government's internal controls and compliance with legal requirements with specific emphasis on the administration of federal awards and state projects. This report contains information related to the single audit, including schedules of expenditures of federal awards and sate projects and the independent auditor's reports. Generally accepted auditing standards and the standards set forth in the General Accounting Office's Government AuditiW S?andords were used bythe auditors in conducting the engagement. The audit was performed to provide reasonable assurance that the financial statements are free of material misstatement for the fiscal year ended September 30, 2016. The audit involved examining on a test basis, evidence zupporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by managemen$ and evaluating the overall financial statement presentation. The confogiltv wlth GAAP. The independent auditor's report is presented as the first component of the financial section of this report Management's Discussion and Analysis (MD&AJ immediately follows the independent auditor's report and provides a narrative inroduction, overview, and analysis of the basic financial statements. The MD&A compliments this letter of transmittal and should be read in conjunction with it. PROFILE OF ST. L,UCIE COUNTY The name "St. Lucie" was introduced by the Spanish in 1555 after the Roman Catholic Saint I,ucia. The current St, Lucie Countywas lmown as East Florida in 1810. In 1821the area was renamed St Johns County. St fohns was split into several counties in 1840 and this area became Mosquito County. Fortyyears passed, and in 1880, the borders were again changed and Brevard County became the name. On fuly 1, 1905, SL Lucie County was established with Fort Pierce as the county seat. Portions were stripped away between 1-91-7 andL925 to become part of present-day neighboring counties. St. Lucie County is located on the eastern edge ofthe south-centrd coast of Florida in the heart of the Treasure/Research Coast region. It is bound on the north by Indian River County, the west by Okeechobee County, the south by Martin County and tho east by the environmentally rich Indian River lagoon and 21 miles of unspoiled beaches alongthe Atlantic Ocean. The county is approximately 588 square miles with a diverse population that includes two cities and one village: Fort Pierce, Port St. Lucie, and St. Lucie Village. The City of Fort Pierce is located approximately 60 miles north of West Palm Beach and 100 miles southeast of Orlando. vt St, Lucie County is a political subdivision of t}e State of Florida, pursuant to the provisions of Section 7 59, Florida Statutes. The Board of County Commissioners, is a five-member board elected at-large from the five districts within the county. lt operates as a non-charter governtnent pursuant to Atticle VIII, Section (1) (0, of the Constitution of the State of Florida, In addition to tle commissioners, there are five elected constitutional officers performing . specifically designated governmental functionst Clerk of the Circuit Court, Property Appraiser, Sherif[ Supervisor of Elections, and Tax Collecror. The county commissioners exercise varying degrees of budgetary control, but not administrative control, over the activities of the constitutional officers. During fiscal year 2015-16, the Sheriff and Supervisor of Elections each operated their respective oflices as budget officers with funding provided by the commissioners. In return, each budget officer is responsible forthe collection of revenues within their jurisdictional area and for the subsequent remittance of such collections to the commissioners. The Tar Collector and Property Appraiser operate as fee officers while the Clerk operates a portion of his office as a budget officer, with the rernainder being operated as a fee officer. Fee officers are authorized to retain revenues generated within their oftices for the purpose of defraying the costs of operation. The Clerk serves as ex-officio Clerk to the Board of County Commissio ners, The duties of the Cler\ as set forth in th e Florida C onstitu tion, include those of county auditor, accountant and custodian ofcounty funds. The commissioners and the constitutional officers constitute the primary government. The Board of County Commissioners serves as the ex-officio governingboard and maintains accounting records for the Central Florida Foreign-TradeZone,lnc,, the county's Mosquito Control District, Erosion District Water and Sewer District Sustainability District, the Housing Finance Authority and the Treasure Coast Education Research and Development Authority. These dependent districts and authorities are blended in with the financial activity of the county in the general fund, special revenue fund and proprietary fund rypes, The counly's financial statements also include the county's share of funding for the operations of the Office of the Medical Examiner, 19rtr Judicial Circuit of Florida. Pursuant to Section 200-06, Florida Statutes, budgets are prepared and adopted for the Board of County Commissioners after public hearings for the governmental funds. At varlous times, the constitutional officers submit a proposed operating budget to the commissioners and to certain divisions within the State of Florida Department of Revenue. The operating bu dget is for the fiscal year commencing the following October 1 and includes proposed expenditures and the means of financingthem, as set forth in Chapter 129 Florida SAtutes. The State of Florida Departrnent of Revenue has the fina! authority on the operating budgets fo r the Tax Collector and Property Appraiser included i n the general fund. The county utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds, The legal level of budgetary control is atthe fund leveL All budgeted appropriations lapse at year end. Formal budgets are adopted fur the general, special reverue, debtservice, and capital proiects funds atthe fund levet. As a result, deficits in the budget columns of the accompanying financial statements may occur. vlt The information presented in the financial statements is best understood when considered from the broader percpective of the environment within which the county operates. LOCAL ECONOMY St Lucie County's population in 2015 was estimatedat292,826, which is largely concentrated in the eastern poftion of the county within 5-10 miles of the Atlantic Coast. This is aSZVo increase over figures from the 2000 Census poprrlation of 192,595 and a considerable9SVoincrease since 1990 cen.sus population of 150,171. Based on 2010 census, the county's median age was 42.4 and was ethnicdly comprised of 6\.2oh white, 18.5% blach L6.6Vo Hispanig 1.590 Asian, 0.2% American Indian and Alaskan Natives andZo/o other races. The median age was 43.2 for 20L5. Service, tourism, agriculnrre, construction and light manufachrring are the principal industries within the county. While St Lucie County is poised to take advantage of its location, climate and abundantworKorce; growth in employment opportunities has not kept pace with the grourth in population. In 2010, the county's unemployment rate reached L3.8o/o, the highest point for the past 10 years, while the State's rate wi$ LL.Lo/o. However, the 2015 preliminary unemployment rate is estimated to be 5.6016 while the State's rate is 4.7%. This indicates significant improvement in the job market. The countysaw tremendous growth between 2003 and 2008. From 2008 to 2013, Ule total assessed real property value has decreased by a3%,lnZ0!4,the local economy started to show gror,nth along with tlle rest of the country. 2015 is the 3.a straight year that we have seen orlr propertyvaluations increase, this year by 8o/o countywide. New construction permits for the unincorporated area of the county decreased from 1,078 in 2004, its highest level, to 43 in 2009, its lowest level. For 2076,229 new construction permits were issued. Compared to the 2015 permit number of l40,the 2016 figure reflects a 64Vo increase. Calendar year end foreclosure property inventory was reduced tremendously from 1,835 in 2015 to 1,316 in 2016. The median single-farrily home sales price, including foreclosure and short sdes, was $180,000, which is l6Yo higher than 2015 while the total single family home sales volume (including foreclosure and short sale) reflects a slight decrease of l.6Yo. RELEVANT FINANCIAL POLICIES St. Lucie County has established a fund reserye policy to ensure that sufficient cash is available in the coming year to mect obligations until fuh.rre anticipated revenues are available. The county's goal is to protect essentid service programs during periods of economic downhrrn or unforeseen catasfophic events. A reserve for contingenry may be budgeted in each of the counqy's funds. At the discretion of the Board of county Commissioners, these funds maybe allocated as needed during theyearto fund unexpected operations or events. vlll The following are the relevant financial policies currently in place: 1. A designated emergenry reserve in the General Fund - In line with GFOA guidelines, L2.5oh of the General Fund operating revenues may be set aside for natural disasters/issues that are not anticipated in the normal budget development 2. A designated fund balance reserve in the General Fund - $1+ million has heen set aside for budget stabilization. 3. A designated fund balance reserve in the General Fund - $5 million has been set aside for transportation in frastruchr re ne eds. 4. Maintaining direct debt per capita below four hundred dollars - Direct debt includes general obligation and governmental fund bond debt. 5. Keeping the average mamrity of general obligation bonds at or below fifteen (15) years. 6. Reviewing the outsumding debts on an annual basis for the purpose of the feasibility of refunding. LONG-TERM FINANCIAL PLANNING The county adopts a five-year capital improvements plan annudlywhich includes requests and input from all departrnents and the Constitutional Officers. Each request includes a proposed funding source and estimated operating cost. The dramatic decrease in county tax revenues and impact fees has forced some new proiects to be postponed. The guideline has shifted to limit new projects to ones that will be either funded or matched with special revenug new debt issuance, grants or contributions. In fiscal year 2016, the county issued three capital related debts: 1. A capital lease with Bank of America in the amount of $9.3 million for the acquisition and upgrade of certain energf efficient equipment 2. A eapital lease with Motorola Solutions, Inc. in the amount of $8.9 million for the 800 MHz infrastrucnrre upgrade. 3. A revenue bond in the amount of $3.3 million for the upgrade of the security control system at the counQy's jail. The following major capital projects were on going in fiscal year 2016: o CountyTa:< Collector New Building - $7 million o FPL Enerry Efficiency Project - $9.3 million lx . Rosser Blvd. Branch Library Renovation - $2.1 million o Treasure Coast Education Research and DevelopmentAuthority Sunshine Kitchen - $1.8 million o Airport Parallel RunwayTaxiway Connection - $4 million . Airport US Crrstoms Building Renovations - $2.2 million o Port New North Entrance - $7.6 million . e Rock Road Detention Center Security Upgrade - $3.3 million o 800 MHz Infrastructure Upgrade - $8.9 million r Midway Road (Selvie Rd. to 25o St.) - $ZZ million o KinBs Highway/lndrio Road Intersection - $9 million o Verada Ditch Phase II - $2.3 million Funding for t}ese projects are from charges for services, grants, impact fees, and property taxes and long-term debt. l\4AloR tNITIATTVES For the third year in a row, the countywide property value has shown a healthy increase. The reversing trend has added $1.7 billion in taxable value for fiscal year 2016 alone and the net increase for the three years is $3.37 billion or L5.L6o/o. Both the cities of Port St. Lucie and Fort Pierce saw significant stronger growth in valuations over last year. Fiscal Y ear 2016, overall, is a year of continued improvement. The pace of employment growttr picked up slightly andthe unemploymentrate further eased. Personal income andtaxable sales growth were also more robust With the national and state economies ccntinuing to expand, the county is working diligently in partnership with the cities of Port St Lucie and Fort Pierce, Chamber of Commerce and Economic Development Council on business growth opportuniues. The following are the other major initiatives taken bythe county:. Enerry efficiency - The county issued a $9.3 million capital lease in fiscal year 2016 to acquire/consr'uct certain enerry efficient equipmenL The return on investment is 9 years (guaranteed by Florida Power & Light) and the enerrysavings will be used to paythe debt.o Green 3 Energr - The county contracted with a private company that plans to invest more than $200 million in funds to build a waste to energy production facility, taking garbage that would otherwise be landfilled and hrrning it into synthetic diesel fuel. This sustainability initiative not only extends the life of the landfill and reduce the need for oil e:rploration, but also will create jobs when it is at full production. Tourism - The county is working with the New York Mets on a 2S-year confact extension that would keep major leagrre spring training and minor league baseball in our community for t}e next generation. This initiative, strategicallytied to our tourist market will see the Mets contribute approximately $60 million to our local economy over the life of the agreement. Technolory - The implementation of GovQA Application allows citizens to report service issues to the county and look up information via the internet Culture and Recreation - The county restored all libraries to five day a week serwices in fiscal year 2O16. The $2.1 million Rosser Blvd. library consrudion is under way and is expected to be completed in early summer 2017. Public safety - The countyissued a $8.9 million capital lease in fiscal year 20L6to fundthe county's 800 MHz radio system upgrade. This upgrade will provide critical and significant public safety communication infrastruchrre improvements to all public safety, school boar4 county and cites'staff. AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada IGFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to St Lucie County for its Comprehensive Annual Financid Report for the fiscal year ended September 30, 2015. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both U,S. generally accepted accounUng principles and applicable legal requirements. This is the 12th consecutive year the county has received the award. A Certificate of Achievement is valid for a period of one year. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting this document to the GFOA to determine its eligibility for another certifi cate. The GFOA has also given an Award for Outstanding Achievement in Popular Annual Financid Reporting to SL Lucie County, for its Popular Annual Financial Report (PAFR) for the fiscal year ended September 30, 2015. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards ofcreativity, presentation, undersandability, and reader appeal An Award for OutstandingAchievement in Popular Annual Financial Reporting is valid for a period of one year. This is the 6th consecutive year the award was received. Both publications are written and produced by the Clerk of the Circuit Court as the Chief Financial Officer of St Lucie County, In addition, the county also participates in GFO/fs Distinguished Budget Presentation Award Program. In order to qualify for the Distinguished Budget Presentation Award a budget document must be judged proficient in several categories including policy documentation, financid planning and organization. The county has received this award for eighteen fiscal years. A Comprehensive Annual Financial Report of this magnitude would not be possible without the dedicated service of our hard-working Financial Operations Departrnent professionals of the Clerl(s office, and the accounting firm of Berger, Toombs, Elam, Gaines & Franlq Certified Public Accountants, PL. Their efforts toward improving accounting and financial reporting systems have led to the enhanced quality of information reported to the Board of County Commissioners, state and federal agencies and most importantly, the citizens of SL Lucie County. It is a privilege to share this information with you by virtue of the authority granted to me as the independently-elected Clerk of the Circuit Court in Article VIII, Section (1) (d) of the Constitution ofthe State ofFlorida asauditor,recorder, and custodian ofoll coungrfunds. e7 eHonorable Joseph E. Smith Clerk of the Circuit Court St. Lucie County, Florida Shai Francis, CPA, CGFO, CGMA COO of Financial Services Clerk of the Circuit Court St. Lucie County, Florida xll ST. LUCIE COUNTY, FLORIDA BLECTED OFFICIALS AS OF SEPTEMBER 30,2016 BOARD OF COUNTY COMMISSIONERS Kim Johnson County Commission Chairperson District #5 Chris Dzadovsky County Commission Vice Chairperson District #1 Tod Mowery Paula A. Lewis Frannie Hutchinson CountyCommissioner CountyCommissioner CountyCommissioner District #2 District #3 District #4 ELECTED CONSTITUTIONAL OFFICERS Joseph E. Smith Ken Pruitt Clerk of the Circuit Court Property Appraiser Ken Mascara Gertrude Walker Chris Craft Sheriff Supervisor of Elections Tax Collector xlv xv Government Finance Offi cers As sociation Certificate of Achievement for Excellence in Financial Reporting Presented to St. Lucie County Florida For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2015 ffiirfrfu* Executive Director/CBO xvl THIS PAGE INTENTIONALLY LEF'T BLANK xvu #t Berger, Toombs, Elam,t=qJ Caines & Frank Cenilic{, hjhlt ActouniEnts PL 600 Gtru5 Avenue SuirB 200 fort Ficrce, florida 14950 77 2;451 -6110 tt 461 -1 1 5s lfux: 772i468-9778 REPORT OF INDEPENDENT AUD]TORS The Honorable Board of County Commissioners St. Lucie County, Florida Report on the Financial Statements We have audited the accompanying basic financial statements of St. Lucie County, Florida (the "County") as of and for the year ended September 30, 2016, as listed in the table of contents. Managernent'e Rerponsibility 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 rnaterial misstatement, whether due to fraud or enor. Auditor's Responslb llity Our responsibility is to express an opinion on lhese financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, 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 proceduras selected depend on the auditofs judgmerrt, irrcluding the assessment of the risks of material misstatement of the financial statements, whether due to fraud or enor. ln maklng those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of tlre 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 eflectiveness of the enti!/s intemal 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 opinion. Forf. Fir.rgs ,/ !tua,t I ,llcrt',bor AICPA Divisiorr Ftrr CPA Firms Priv.rle Grnrpanies Prar.lice Sertirrn Merr,ber AICPA I,l.trnrhcr FICFA S n'zu roomrx' Ehm' The Honorable Board of County Commissioners St. Lucie County, Florida Opiniort In our opinion, lhe basic financial statements refened to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, each major fund and the aggregate fund information of St. Lucie County, Florida as of September 30, 2016, and the respective changes in financial position and the budgetary comparison for the General, Transportation Trust and Fine and Forfeiture Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Req u ired S upple me nt a ry I nf orm d ion Accountirp principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedule of Funding Progress - Other Postemployment Benefits Plan, Schedule of the County's Proportionate Share of the Net Pension Liability - Florida Retirement System Pension Plan, Schedule of County Contributions - Florida Retirement System Pension Plan, Schedule of the County's Proportionate Stpre of the Net Pension Liabilily Health Insurance Subsidy Pension Plan, Schedule of County Contributions - Health lnsurance Subsidy Pension Plan, and Notes to Required Supplementary lnformation be presented to supplement the basic financlal statements. Such information, allhough not a part of the basic financial statements, [s required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, Berger. ToombE, Elam, Cai"nes & Frank The Honorable Board of County Commissioners St. Lucie County, Florida Other Informalion Our audit was conducted for the purpose of forming opinions on the basic financial statements of St. Lucie County, Florida. The Non-major Budgetary Comparison Schedules, the Gombining and lndividual Non-Major Fund Financiat Statements, Schedule of Expenditures df Federal Awards and State Projects, as required by Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Frofit Organizations and the Florida Department of Financial Services Projects Compliance Supplement and the other information. such as the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements, The Non-major Budgetary Comparison Schedules, the Combining and lndividual Non-Major Fund Financial Statements. Schedule of Expenditures of Federal Awards and State Projects, as required by Office of Management and Budget Circular 4-133. Audits of States, Local Govemments and Non-Profit Organizations and the Florida Department of Financial Services Projects Compliance Supplement and the other information, such as the introductory and statistical sections are the responsibi{ity of management and was derived frorn and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjecled to the auditing procedures applied in the audit of the baslc financial statements and certain additional proc€dures, including comparing and reconciling such information dlrectly to lhe underlying accounting and other records used to Prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. ln our opinion, the Non-major Budgetary Comparison Schedules, the Combining and lndividual Non-Major Fund Financial Statements, Schedule of Expenditures of Federal Awards and State Pro,lects, as required by Qffice of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and the Florida Deparlment of Financial Services Projects Compliance Supplement and the other information, such as the introductory and slatistical sections are fairly stated, in all material respects, in relation to the basic financial slatements as a whole. Other Reporting Required by Government Auditing Standards ln accordance with Govemment Auditing Sfandards, we have also issued a report dated March 29,2017 on our consideration of the County's intemal control over financial reporting and on oLrr tesls of its compliance with certain provisions of laws, regulations and contrac{s. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral parl of an audit performed in accordance with Goyemment Auditing Standards in considering St. Lucie Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 29,2017 THIS PAGE INTENTIONALLYLEFT BLANK St. Lucie County, Florida Management's Discussion and Analysis September 30,2016 St. Lucie County's (the "County") discussion and analysis is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the County's furancial activity, (c) identify changes in the County's financial position, (d) identiff any material deviations from the financial plan, and (e) identify individual fund issues or concerns. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current years activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page v) and the County's financial statements (beginning on page l7). HIGHLIGHTS Financial Highlights o The assets of the County exceeded its liabilities at September 30,2016 by $613.7 million (net position). None of this amount may be used to meet the government's ongoing obligations to citizens and creditors. This is the result of increase in net pension liability. . The County's total net position decreased by $6.1 million. The decrease is attributed to the increase in net pension liability. o At September 30,2016, the County's governmental funds reported a combined ending fiurd balance of $188.3 million, an increase of $4.7 million in comparison with the prior year. . The County had a $3.1 million decrease in unassigned fund balance in the general fund. The decrease is mainly attributed to the increase il emergency reserve. USING THIS ANNUAL REPORT The annual report consists of a series of financial statements. The government-wide financial statements (on pages I 7, l8 and 19) provide information about the activities of the County as a whole and present a longer-term view of the County's finances. Fund financial statements begin on page 20. For governmental funds, these statements tell how these services were financed in the short term as well as what remains for future spending. For proprietary firnds, these statements provide the same type of information as the government-wide furancial statements, only in more detail. The County uses an internal service frrnd to account for the management of its self-insurance activities. Because the self-insurance flrnd predominantly benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Fund financial statements also report the County's operations in more detail by providing information about the County's most significant funds. The remaining statements provide financial information about activities for which the County acts solely as a trustee or agent for the benefit of those outside of the government. Reporting the County as a Whole Our analysis of the County as a whole begins on page 17. The Statement of Net Position and the Statement of Activities report information about the County as a whole and about its activities in a way that helps to assess the County's financial health. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used in most private-sector companies. All of the current year revenues and expenses are taken into account regardless ofwhen cash is received or paid. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30, 2016 These two statements report the County's net position and the changes in net positior. You can think of the County's net position - the difference between assets plus deferred outflows of resources and liabilities plus the deferred inflows of resowces - as one way to measure the County's financial health, or financial position. Over time, increases or decreases in the County's net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the County's property tax base and the condition of the County's roads, to assess the overall health of the County. ln the Statement of Net Position and the Statement of Activities, we divide the County into two kinds of activities: o Governmental activities - Most of the County's basic services are reported here, including the public safety, public works, parks and recreation, and general administration. Taxes, franchise taxes, charges for services, grants, and interest eamings finance most of these activities. o Business-type activities - The County charges a fee to customers to help it cover all or most of the cost of certail services it provides. The County's Bailing & Recycling, Water and Sewer District, South Hutchinson Utilities, Golf Course, and Building Code operations are reported here. Fund Financial Statements Our analysis of the County's major funds begins on page 20. The fund financial statements provide detailed information about the most significant funds - not the County as a whole. Some funds are required to be established by State law and by bond covenants. However, the Corurty establishes many other funds to help it control and manage money and to show that it is meeting legal responsibilities for using certain taxes, grants, and other monies such as fines and forfeitures. Governmental Funds Most of the County's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. Those funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental frrnd statements provide a detailed short-term view of the County's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Counfy's programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations presented on page 22 andpage 26. The County maintains frfty-nine individual governmental funds. Information is presented separately in the govemmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Transportation Trust Fund, Fine and Forfeiture Fund, SHI Special Assessment Bond Fund, North Lennard Road Bonds I&S Fund and Impact Fee Fund, all of which are considered to be major funds. Data from the other frfty-three governmental flmds are combined into a single, aggregated presentation as "other governmental funds". lndividual fund data for each nonmajor governmental fund is provided in the form of combining statements and begins on page 100. Annual budgets are adopted for all governmental funds. The budgetary comparison statements have been provided for all governmental funds to demonshate compliance with the budget. The basic governmental fund financial statements can be fowrd on pages 20-29 of this report. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 Proprietary Funds When the County charges customers for the services it provides - whether to outside customers or to other units of the County - these services are generally reported in proprietary funds. The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its Bailing & Recycling, Golf Course, Water & Sewer and Building Code operations. The Internal Service Fund is an accounting device used to accumulate and allocate costs internally among the County's various functions. The County uses its Internal Service Fund to account for its insurance progmrns. Because these insurance programs predominantly benefrt governmental functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same O?e of information as the government-wide financial statements, only in more detail. The basic proprietary fund financial statements can be found on pages 30 to 35 of this report. Fiduciary Funds The County holds deposits for various individuals and businesses for contract performance that are then returned when the contract has been completed. The County also holds deposits for special assessment debt which the County is not obligated to repay. These deposits are accounted for in an Agency fund, where assets equal liabilities. The basic fiduciary fund financial statement can be found on page 36 of this report. Notes to Financial Statements The notes provide additional information that is essential to a fi,rll understanding of the data provided in the government- wide and fi.rnd financial statements. The notes to financial statements can be found on pages 38 to 88 of this report. Required Supplementary information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information highlighting the schedule of funding progress for other postemployment benefits, the County's Proportionate Share of Net Pension Liability and the County's statutorily required contributions. The required supplementary information can be found on page 90 to 92 of this report. THE COUNTY AS A WHOLE Financial Analysis of the County as a Whole Over time, net position may serve as a useful indicator of a government's hnancial position. As of September 30, 2016, the assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $613.7 million. Our analysis focuses on net position (Table l) and changes in net position (Table 2) of the County's governmental and business- type activities. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 GOVERNMENT-WIDE STATEMENTS The following table reflects the condensed Statement of Net Position: Table I Statement of Net Position As of September 30, 2015 and 2016 (in millions) Current and other assets Capital assets Total assets Total deferred outflows of resources Cunent liabilities Non-current liabilities Total liabilities Total deferred inflows of resources Net position: Net investment in capital assets Restricted Unrestricted Total net position 2015 2016 20tS 2016 $ 23s.5 $ 238.3 $ 26.9 $ 25.s569.8 s'7 s.2 '77.3 78.0805.3 813.5 104.2 103.5 Governmental Activities Business-type Activities Total 2015 2016 s 262.4 $ 263.8 647.1 653.2 909.5 917.0 Total Percent Change 0s3% 0.94% 0.82% 17.0 4'7 .8 1.0 2.7 49.5 18.0 45.2 252.t 297.3 1 80.56% 2.43% 21.38% 18.50% -85.58% r.41yo 1.78y;o -235.94% -0,98% 41.2 42.0209.5 260.8 250.7 302.8 46.6 46.3 306.0 352.3 10.4 I .5 523.6 531.0 89.8 9r.4 (8.7) $ 619.8 $ 613.7 4.0 42.6 4.) 45.2 9.9 1.5 0.5 56.0 t.7 0.4 $ 58.1 467.6 473.9 88.1 89.5 57.r 1.9 (2.3) $ s6.7 6.0 (6.4) s 561.7 S 557.0 The largest portion (86.51%) of the County's net position reflects its investment in capital assets (i.e. land, buildings, machinery, equipment, and infrastructure); less any related debt used to acquire those assets that is still outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted portion of the County's net position (14.9%) represents resources restricted for purposes other than operations such as debt service and other legally resticted purposes. The total change in net position was a $6.1 million decrease. More detailed information concerning the County's net position is presented on page 17 of the government-wide financial statements. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 Totll l{cr Porfth Comparlron lbr t'lscelY+er l0l5rnd l.kceltclr 1016 ,lllrftnsrrrlla ltt{frfii to.0 srm.o s8fito t3{tro s(tro s6f,t0 Amorul (lr nllllom) $m.o 82015 12016 Major changes in the statement of net position are as follows: o Current and other assets for governmental activities increased by $2.8 million. This is mainly attributed to the positive change in fund balance at the fund level. o Total deferred outflows of resources increased by $32.5 million ($30.8 million for governmental activities and $ I .7 million for business-type activities). This is mainly attributed to pension liability adjusknents for pension assumption, pension experience and the change of Cowrty's proportionate share of the net pension liability. o The deferred inllows of resources decreased by $8.9 million ($8.4 million for governmental activities and $0.5 million for business-type activities) . This is mainly attributed to pension liability adjustments for pension assumption, pension experience, pension investment and the change of County's proportionate share of the net pension liability. o Total liabilities increased $55 million ($52.1 million for governmental activities and $2.9 million for business- type activities). This is athibuted to the pension and OPEB liabilities. . Capital assets increased by $6. 1 million. Refer to the subsequent section on Capital assets for additional detail. The following table shows the revenues and expenses of the total primary government: St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 Table 2 Changes in Net Position For the Fiscal Years Ended September 30, 2015 and 2016 (in millions) Governmental Business-type Activities Activities 2015 2016 2015 2016 2015 2016 Change Total Primary Government Total Percent 5.6% -41.90 -4t.9% -1.7% -1.0% REVENUES Program revenues: Charges for services Operating grants and contributions Capital gants and contributions General revenues: Properfy taxes Other taxes Intergovemmental Other Total revenues EXPENSES General govemment Public safety Physical environment Transportation Economic environment Human services Court related Culture and recreation Bailing & recycling Water and sewer Golf Course Building code Interest and fiscal charges Total expenses Change in net position before transfers Transfers Change in net position Net position - Beginning Net position - Ending $ 2\.7 12.6 15.0 125.7 8.5 18.3 1 1.5 2r3.3 45.5 87.0 6.3 z)- I 5.8 1t.7 21.r 17.7 $ 21.2 tt.2 20.8 136.0 8.5 19.5 12.8 230.0 s 26.9 $ 0.1 1.0 28.0 $ 48.6 t2.6 15.1 r25.7 8.5 18.3 t2.5 24t.3 50.1 3.t% 11.2 -11.10h 20.9 38.4% 28.9 0.1 0.7 47.3 94.8 6.3 22.8 7.0 12.7 20.3 19.9 29.7 136.0 8.5 19.s 13.5 259.7 265.8 (6.1) (6.1 ) 619.8 $ 613.7 8.2% 0.0% 6.6% 8.0% 7.6% 4.00 9.0% 0.004 -3.8% 20,7% 8.s% -3.8% 12.4% 4.0% 8.lYo 7.7% t4.3% 0.0% 45.5 47.3 87.0 94.8 6.3 6.3 23.7 22.8 5.8 7.0 11.7 t2.7 2t.t 20.3 17 .7 19.9 17.5 t8.2 8.6 9.3 1.3 1.4 r.4 1.6 4.2 4.2 17.5 8.6 1.3 t.4 18.2 9.3 t.4 1.6 4.2 223.0 (e.7) 0.3 (e.4) 571 .1 $ 561.7 4.2 235.3 (s.3) 0.6 (4.7) 56r.7 $ 557.0 28.8 (0.8) (0.3) (1.1) 59.2 $ s8.1 (0.8) (0.6) (1.4) 58.1$ s6.7 2s 1.8 (10.s) (10.s) 630.3 $ 619.8 305 Overall the total expenses exceeded revenues by $6.1 million. Program revenues are specific to the functions of the primary govemment such as fees and charges for services, grants and capital conhibutions. The expenses of the primary govemment were $265.8 million with public safety operations comprising the largest expense category at 35.670/o or $94.8 million. Public safety activities include law enforcement, a correction/detention facility, and emergency management. The County's primary govemment total revenues increased by $18.4 million and the total expenses increasedby $14 million from FY 2015. The total revenues increase was primarily due to the increase in property tax, sales tax and capital grants and contibutions categories. The largest expense increase occurred in public safety. The $7.8 million increase was mainly due to increases in pension cost in FY 2016. St. Lucie County, tr'lorida Management's Discussion and Analysis (continued) September 30,2016 Our analysis below separately considers the operations of govemmental and business-type activities. Governmental Activities Governmental activities expenses and transfers exceeded revenues and transfers by $4.7 million. Total revenues increased about $16.7 million from the previous year. This was mainly due to increases in property tax revenues and capital grants and contributions. Total expenses increased $12.3 million from the previous year. The increase was mainly due to the increase in pension and OPEB liabilities. The following is a graphic illustration of the comparison for governmental activities revenues and expenses. Governmental ActMties Comparison for FiscalYear 2015 and FlscalYear 2O16 gE 5Sc= {a s12:tr) stmIl flt0 tso0 sr5,0 s0J) Business-type Activities Revenues of the County's business-type activities (see Table 2) increased by $1.7 million and expenses also increased by $1.7 million. The increase in revenues was mainly due to increases in charges for services. The increase in expenses was primarily due to an increase in pension and OPEB liabilities. Following is a graphic comparison of the County's business-type activities. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30, 2016 Business-Tnle Activities Comparison for FiscalYear 2015 and Fiscal'lleal 2016 r:EIE trE(e g s2s.0 s20.0 sl5-0 sl(t0 $5.0 $.0 t'*d .$s* Revenue/Erpense types FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS As noted earlier, the County uses fimd accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the County's govemmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As the County completed the fiscal year, its governmental funds (as presented in the balance sheet on pages 20 to 2l) reported a combined fund balance of $188.3 million, which is an increase of $4.7 million over the prior year of $183.6 million. The fund balance section is presented in classifications that comprise a hierarchy based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in those fi.mds can be spent. As of September 30,2016, the County had fund balance in I ) a nonspendable category for inventory, prepaid items and advance to other funds ($7 million), 2) a restricted category for resources that are either restricted externally by creditors, grantors, contributors, or law or regulations of other government or imposed by law through constitutional provisions or enabling legislation ($ I 19.7 million), 3) a committed category for contractual obligations that the County has allocated fi.rnding ($ 11.4 million), 4) an assigned category for constraints by the County's intent to use the balance for specific purposes ($46 million), and 5) an unassigned category is available for spending at the County's discretion. As of September 30,2016, the County has $4.2 million in the unassigned category. The Genersl Fundis the chief operating fund of the County. At the end of the fiscal year, the total fund balance was $56.4 million, while the unassigned fund balance was $4.2 million. As a measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 2.91% of total general fund expenditures, while total fund balance represents 38.69% of that same amount. The General Fandhad a $3.5 million increase in total fi.md balance and a $3.1 million decrease in unassigned fund balance during the current fiscal year. The increases in total fund balance was caused by an increase in tax revenues and reduction 12 St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 in interfund transfers out. The decrease in unassigaed flmd balance was caused by an increase in the amount assigned for emergency reserve. The Transporlation Trust Fund fund balance reflects a $0.6 million decrease from the prior fiscal year. The total fund balance was $8.7 million, of which, $0.3 million is nonspendable and $8.4 million is restricted. The decrease of the total fund balance from the prior year is mainly due to an increase in road maintenance expenditures. The Fine and Forfeiture Fand fund balance reflects a $6.8 million decrease from the prior fiscal year. The total fund balance was $14.9 million, all of which is restricted for the law enforcement and court related functions. The decrease of the total fund balance from the prior year is due to the increases in operating expenditures and interfund transfers out. The SHI Special Assessmenl Bond Fand accounts for the special assessment revenues pledged to pay the South Hutchinson Island 1998 special assessment debt. The total fund balance was $2.2 million, all of which is restricted for debt service. The total fund balance reflects a $0.6 million increase from the prior fiscal year. The increase is due to no early bond calls in fiscal year 2016. The N. Lennard Road Bonds I&S Fund accounts for the special assessment revenues pledged to pay the N. Lennard Road Phase I, II, and III special assessment debts. It has a total fund balance of $2.2 million, all of which is restricted for debt service. The total fund balance reflects a $0.16 million increase from the prior fiscal year. The increase reflects the elimination of administrative charges from the general fund. The Impacl Fee Fund accounts for the impact fees used for parks, libraries, public buildings and correctional facilities. It has a total fund balance of $26 million, most of which is restricted for capital projects. The total fund balance reflects a $ 1.3 million increase from the prior fiscal year. The increase is due to an increase in impact fees collections. Proprietary Funds The County's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The total net position of the Bailing & Recycling Facility Fund atthe end of the fiscal year totaled $27.5 million, while the total unreshicted net position was negative $6.9 million. Compared to the prior year, the total net position had a decrease of $1.1 million while the unrestricted net position had a decrease of $3.3 million. This is mainly due to the recognition of the net pension liability. The total net position of the Golf Course Fund at the end of the fiscal year totaled a negative $5 million. Compared to the prior year, the net position had a slight decrease of $58,855. This is attributed to the recognition ofthe net pension liabilify. The total net position of the lilakr and Sewer District Fund at the end of the fiscal year totaled $ 17.9 million, while the unrestricted net position amounted to $3. I million. In comparison to the prior year, the total net position had a decrease of $519,578. This is attributed to the recognition of the net persion liability. Other factors concerning the finances of these funds have already been addressed in the discussion of the County's business- type activities. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 General Fund Budgetary Highlights Variance between Original Budget and Final Budget The General Fund includes activities of the Board of County Commissioners as well as all of the Constitutional Offices. After the original budget is approved, it may be revised for a variety of reasons such as unforeseen circumstances, correctionsoferrors,newbondorloanproceeds,newgrantawards,andotherrevenues. Duringfiscalyear20l6,thebudget for the general fund was amended from its original budget; which consists of total expenditures, transfers out, and ending fund balance; of $197.4 million to its final budget of $202.2 million. The original budget for revenue and other financing sources, which consists oftotal revenues, transfers in, lease pwchase proceeds, and proceeds from the sale of capital assets; was $154.6 million. Throughout the year, changes were made that increased the total revenues by $1.5 million to $156.1 million. The budget for expenditures and financing uses was originally adopted at $159.8 million. The final budget was $164.5 million, which was a $4.7 million increase. The final budget for the General Fund's beginaing fund balance increased by $3.2 million compared to the original budget. Variance Between Final Budget and Actual The actual revenue and other financing sources came in under the final budget by $0.4 million primarily due to intergovernmental revenues coming in under the budgeted amount. Timing of grant revenues caused the intergovernmental revenue variance. Many of the grants the County received were paid on a reimbursement basis. Because not all of the grant projects had been completed by year-end, the associated revenues were not received during the fiscal year. It is anticipated that these grant revenues will be received in fuhre periods. The actual expenditures and other financing uses came in under the final budget by $12.3 million. General government expenditwes came in $4.4 million below the final budget. This was due to the timing of the Veterans' Nursing Home project, funds being carried into fiscal year 2017 related to All Aboard Florida, and variances in operating budgets. Public Safety came in $3.1 million less than the final budget mostly due to the timing of inmate medical expenses. Economic environment came in $1.5 million less than the final budget primarily due to the timing of grant projects and the County's job incentive progam. Human Services came in $0.7 million less than the final budget. This was mainly due to the timing of grant projects. Culture and Recreation came in $ I . I million less than the final budget. This was caused by variances in operating budgets. Capital Outlay expenditures were $1.3 million less than the final budget primarily due to the timing of capital projects. Operating transfers out came in at the frnal budget level, while operating transfers in came in under the final budget by $ 1.5 million. The actual net change in fund balances was $3.5 million. St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of fiscal year 2016, the County had $653.2 million invested in a broad range of capital assets, including land, law enforcement and public works equipment, buildings, park facilities, roads, bridges, and stormwater drainage structures. This amount represents a net increase (including additions and deductions) of $6.1 million, or 0.9o/o, over the prior year. The following table illustrates the changes in capital assets. See pages 57 to 58 in the notes to financial statements for detailed changes in capital assets. Capital Assets (net of depreciation, in millions) Land Buildings and improvements, net of accumulated depreciation Equipment, net of accumulated depreciation Construction in progress Total 201s 2016 $ 160.5 $ 161.1 365.8 355.3 58.1 $ 569.8 $ s7s.2 g 77.3 Total Total Percent 2015 2016 Change $ 1709 $ 171J M% 55.5 423.9 410.8 -3.r% Governmental Activities Business-typ e Activities2015 2016$ 10.4 s 10.4 s 78.0 23.5 21.8 3.7 3.8 27.2 25.6 20.0 )7.0 5.1 8.3 25.1 45.3 -5.9% 80.s% Governmental activities had a major increase in the construction in progress category mainly due to the increase in planned capital project expenditures for the Midway Road project and jail security system upgrade. Business-type activities had a major increase in the construction in progress category mainly due to the recyclables processing facility proj ect. Debt On September 30,2016, the County had $ 133.9 million in bonds, notes and capital leases outstanding versus $129.8 million on September 30, 2015 - an increase of 3.14o/o- as shown in Table 4: The increase in debt is the net result ofthe issuance ofnew debt and scheduled principal payments on long-term debt. See pages 63 to 65 in the notes to financial statements for detailed changes in long-term debt. $ 647.1 $ 653.2 0.9% Total Totals Percent Governmental Activities Table 4 Business-type Activities 2015 $ 290,000 60,320,000 41,026,trs 6,739,690 t,110,962 2016$ 20,000 56,960,000 40,357,751 6,s88,054 10,001 ,268 2015$-$ 290,000 60,320,000 41,026,115 6,739,690 1,r10,962 20,295,000 s 129,781,767 2016$ 20,000 56,960,000 40,35'7,751 6,588,054 10,001 ,268 19,925,000 $ 133,852,073 Change -93.10% -5.5'7% -r.63% a a<o/ 800.23% -1.82% 3.14% 2016 2015 General obligation debt Revenue bonds Revenue notes Special assessment bonds Capital leases Water & sewer debt Totals 20,295,000 $ 20,295,000 1 9,925,000 $ 19,925,000$ 109,486,767 $ t13,927,073 '15 St. Lucie County, Florida Management's Discussion and Analysis (continued) September 30,2016 Additional information on the County's long-term debt can be found on pages 66 to 69 in the notes to financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BTIDGETS AND RATES The County's elected officials considered many factors when setting the fiscal year 2017 budget, tax rates, and fees. One of those factors is the economy. St. Lucie Count5r's local economy consists of services, tourism, agriculture, construction and light manufacturing industries. Employment, income and housing are the three broad indicators that provides the best picture of economic development. Im20l6, St Lucie County's unemployment rate continued its post-recession decline, reaching 5.6%o, signifrcantly lower than rhe 6.2% in previous year. Although these values are still far from the low unemployment rates of the pre-recession period, this decline is consistent with the rest of the economy. Personal income is another good indicator of the local economy. In 2015, St Lucie County personal income increased at a rate of 6.60/o compared to the State of Florida's 5.5%. New construction in the unilcorporated area decreased from 908 new homes :-r;.2004 to 229 in20l6. ln comparison to 2015, the 2016 figure reflects a 640/o increase. Total single family home sales decreased l.60/o from 5,404 in 2015 to 5,3 15 in 2016, while the State is experiencinga0.9o/o increase. The median sale price for an existing single-family home in the area was $180,000, which reflects an increase of l6.lYo from 2015. The State median sale price reflects a 12.2o/o increase. These indicators were taken into account when adopting the county's budget for fiscal year 2017. The economic impacts of the past few years have provided many challenges to the County. The County continues its aggressive assessment of operations of its current and future fiscal position. The adopted budget was established on a combined total operating millage rate of 7.7004 mills (one mill: $1 per $1,000 of assessed properly value) to support the County's operating budget and dependent districts. The rate reflects a 0.4o/o decrease from the prior year. The utilization of reserves remains a budget balancing factor for the general fund. Amounts available for appropriation in the Board of County Commissioners' General Fund budget in2017 are $135.6 million, an increase of 4.03% from the original f,rscal year 2016 budget of $130.3 million and an increase of 0.28o/o from the final fiscal year 2016 budget of $135.2 million. REQUEST FOR INFORMATION This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the County's finances and to show the County's accountability for the money it receives. If you have questions about this report or need additional information, contact the County's Finance Deparfment, 2300 Virginia Avenue, Fort Pierce, Florida 34982. 16 THIS PAGE INTENTIONALLYLEFT BLANK St. Lucie County, Florida Statement of Net Position September 30, 2016 Govermental ActiYities Business-type Activities ASSETS Cuent assets: Cash and investmflts Restricted assets: Cash md investments<ustomer deposits Accomts receivable, net Assessments receivable Interest receivable Due fiom otho govemmts IntemI balmces Inventories Prepaid item Total cwent assels Non-crent ssets: Restricted assels: Cash md investrnents-lmdfill closre Cash and invesheDts-renewal md replacement Capihl 6sets, Dot being depreciated: Iand Construction in progess Capital assets, being depreciated: Buildings and improvements Machinery md equipment Accmulated depreciation Total non-cuent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Defened amout on refunding Defened outflows related to pereion plao Totsl defe[ed outflows of resomes LIABILITIES Cuent liabilities: Accouts payable Mahred bonds payable Mahled interest payable Claim payable Deposis payable from restricted assets Acmed interest Due to other govemetrts Bonds md notes payable - net Spmial assessment debt - govement comihnmt Capital lBse paFble Accrued omlrcnsated absences Unamed revenues Total cuent liabilities Non-cuent liabilities: Liabilities payable from resticted assets Bonds od notes payable - net Special assessment debt - govement comitment, net Capital lease payable - net Accrued compensated absences - net landfill long-tem maintenance liabilities OPEB liability Net pension liability Total non-cEent liabilities Total liabilities DEFERRSD INFLOWS OF RESOURCES DeGred inflows related to pension plan NET POSITION Net investment in capital assets Restricted for: Traroportation Physical mviroment Humn senices Enviromental Imd acquisition Debt service ReDewa[ md replaceEent Capital projects Other purposes Urcstricted Total net Fsition 23,979,112 $ 235,347,708 161,078,1 l6 36,998,798 510,092,494 88,t22,533 (28r,060,083) (67,927,139) 57s,231,858 83,207,516 6s8,439,374 813,s17,585 t03,s2s,146 9t'7,042,',731 3,014,212 29E,682 3,312,894 44,7s9,404 2,366,378 47,t25,',182 47,7'13,616 2,665,060 s0,438,676 $ 211,368,596 1,319,559 I,364,',789 9,874,471 503,249 6,'750,962 6,087,904 543,363 472,834 238,28s,72't 439,160 1,658,837 79,988 36,',715 (6,087,904) 21t,334 388 20,317,630 3,'725,4t'7 I,489,124 t0,356,397 8,304,897 1t4,024,907 13,214,513 1,758,719 3,021,626 9,814,41t 583,231 6,787,617 '754,697 473,222 2s8,603,351 3,725,411 1,489,124 111,434,s13 45,303,695 684,1t7,401 101,357,046 (348,987,822) 309,127 10,267 319,394 42,007,742 4,252,099 46,2s9,841 3,304,953 3,304,953 1,439,330 6s9,238 1,319,s59 515,030 2,090,232 8,026,91 l 360,934 1,0r9,823 6,980,s99 93,411,s55 6,227,t20 8,981,,145 7,926,8'1',7 36,610,87s 473,8s2,620 13,264,250 4,809,944 5,070,r80 692,6ss 21,651,089 40,655,552 3,37 t,971 (6,3s8,167) $ 557,016,100 478,t75 439,160 12,83 I 515,000 2',72,3s'l 14,086,631 1,104,832 1,489,124 420,464 (2260,9r't) $ s6;142,415 20,312,913 113,730,468 - 6,227,120 - 8,981,,145 308,471 8,235,348 14,6s3,573 2,1s4,31s 4,633,386 370,000 r 6,807,888 5,003,386 1,91 7,505 659,238 I,158,7t9 5 15,030 2,103,063 8,541,9r r 360,934 1,019,823 7,252,950 14,086,63 I 38,315,707 13,264,250 4,809,944 5,070,180 692,6ss 21,657,089 1,489,124 40,655,552 3,'792,441 (8,619,084) s 613,758,515 107,620,582 5,470,891 113,09t,479 260,784,4s4 45,188,697 305,973,151 302;192,196 49,440,'196 3s2,232,992 1,482,90s 6,995 1,489,900 57,093,744 530,946,364 The accompanying notes to fmancial statements are an integral part ofthis frnancial staternent. 17 St. Lucie County, Florida Statement of Activities For the Year Ended September 30,2016 Program Revenues Functions/Programs Charges for Services Operating Grants and Capital Grants and Contributions Contributions Primary Government: Govemmental activities : General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court related Interest on longterm debt Total govemmental activities Business-type activities: Bailing & recycling Golf course Water & sewer Building code Toral business-type activities Total primary government Expenses 4'.7,318,679 94,870,7s0 6,314,624 22,789,966 6,978,s00 12,666,374 l 9,880,606 20,289,582 4,207,622 235,316,703 I 8, I 85,680 1,415,595 9,3t5,t47 r,620,227 30,536,649 $ 265,8s3,352 8,707,858 2,6s6,847 493,955 1,807,s56 7,535,935 994,487 3,05 r,89s 865,042 2,425,275 2,208,706 r93,s39 423,118 1,058,s60 s64,406 628,614 6,072,564 rr,384,965 388,834 t,787,887 21,202,t5t 17,318,92t r,236,384 8,282,856 2,068,30t 28,906,462 1,220,622 $ 50,108,613 S rr,220,622 9t,378 $ 20,918,708 20,827,330 9r,378 General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for debt purposes Sales taxes Franchise taxes State shared revenues Investment income Miscellaneous Total general revenues Transfers Total general revenues and transfers Change in net position Net position - beginning ofyear Net position - end ofyear The accompanying notes to financial statements are an integral part ofthis financial statement. Net @xpense) Revenue and Chanqes in Net Position Primary Government Governmental Activities Business-type Activities $ (37,0s1,928) (88,533,334) 622,982 (8,485,77 1) (4,380,960) (12,472,83s) (l s,862,045) (l 1,695,087) (4,207,622) (r 82,066,600) (1 82,066,600) (866,759) (t79,2rr) (940,9 r 3) 448,074 (1,538,809) (1,538,809) (37,0s1,928) (88,533,334) 622,982 (8,485,771) (4,380,960) (t2,472,83s) (15,862,045) (1 1,695,087) (4,207,622) ( 1 82,066,600) (866,7se) (r79,211) (940,913) 448,074 ( r,538,809) (r 83,605,409) 135,745,043 236,359 3,652,354 4,876,430 19,49r,917 2,560,840 t0,227,6s3 t76,790,596 6t0,694 363,s07 377,500 74r,007 (610,694) r35,745,043 236,3s9 3,652,354 4,876,430 19,491,9t7 2,924,347 10,605,1 53 177,s3r,603 177,40r,290 130,313 177,531,603 (4,66s,310) (1,408,496)(6,073,806) 6t9,832,321561,681,410 58,150,91 I $ 557,016,100 $ 56,742,415 $ 613,758,s15 't9 St. Lucie Comty, Florida Balance Sheet Governmental Funds September 30, 2016 Transportation Fine and SHI Special General Trust Forfeiture Assessment Bond ASSETS Cmh md investments Accouts receivable Assessments receivable Interest receivable Due from other fimds Due from otha govemments hventories Prepaid items Advmces to other funds Total assets LIABILITIES Accomts payable and other cuent liabilitis Matured bonds payable Mahued interest payable Deposits payable Due to other funds Due to oitrer govemeDts Unemed revenues - other Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues - spoial assessm€nts Unavailable revenues - grmts Total defened inflows ofresouces FT'ND BALANCES Nonspendable: lnventories of supplies Prepaid items Advmces to other fiuds R6tricted: Port development Erosion Conrol Distict Paks improvernents Court related Court Administator, mediation Tmsportation Debt sewice Enviromencal land acquisition law enforcement Court modemiztion Mosquito Control District Judicial expenditues Housing assistmce progm Boating related prcjects Art in public places Other capital projects Other purposes Committed to: Street lights, roads, drainage imp. to special district Unincorporated Sewices Iaw enforcement Other purposes Assigned to: Emergency resewes Prcjected budget deficit for fiscal ya 2017 Unassigned Total firnd balmces Total liabilities, defened inflows ofresources md fund balmces $ 58,581,594 452,300 5,054 126,176 709,248 5773& 91,306 6,087,904 $ 66,63t,446 s 8,395,?78 t4,459 23,17 5 t7 614,1't0 357,560 62r $ 14,493,269 28,87t 39,563 606,740 536,495 $ 2,148,2'10 5,430,418 4,974 $ 9,405,780 $ 15,704,938 $ 7,583,662 5,660,906 1,307,041 873,984 r,918,591 49,805 9,8t0,32',1 557,1 I I 105,032 4,90r 49 664,887 81,751 56,692 667,093 803,330 393,059 393,059 9 1,306 6,087,904 17,270 36,500,000 9,s00,000 4,231,580 56,428,060 38,22',1 5,430,418 38,221 s,430,418 357,560 621 8,380,506 442,871 r4,420,5t0 2,t53,244 8,738,687 s 66,631,446 S 9,405,780 The accompanying notes to financial statements re m integral part ofthis finmcial statement. 20 14,863,381 2,t53,244 $ 15,704,938 $ 7,s83,662 N Lenngrd Road Bonds I and S Impact Fee $ 2,195,353 S Other Governmentel Funds $ 86,086,7s0 761,236 215,t58 204,964 258,280 4,282,819 159,576 271,703 Total Governmentrl Funds $ 199,184,928 1,269,846 9,874,4'n 469,466 1,583,232 6,592,266 517,136 363,857 6,087,904 s 225,943,t06 13,102,240 4,633,3 86 1,439,330 1,319,559 1,583,232 2,090,232 24,462,'102 4,223,841 4,433 3,973 2'.1,283,9t4 I 2,980 71,155 580,9 I 8 227 $ 6,42't,600 $ 27,949,194 s 92,240,486 1,841,460 4,377,8'16 4,528,3s4 t,434,429 12,518 709,248 89,841 188,226 1,841,460 \ 1,340,492 4,223,841 2t5,158 I 16,820 9,869,4t72,7s4,7t4 3,302,820 2,969,8',12 t3,t'12,2374,223,84t l 16,820 2,203,759 2s,990,687 2,203,759 25,990,914 7',|930,t22 s 92,240,486 5t7,t36 363,857 6,087,904 3,305,541 5,770,007 1,840,867 442,81r 2,10s,092 l 3, l 93,804 '1,399,2s9 692,655 15,651,8s8 632,029 6,25t,291 1,369,386 95,042 I,097,894 72,582 55,989,548 3,833,45 r 230,216 9,252,330 481,133 1,400,834 36,s00,000 9,500,000 4,231,580 r 88,308, l 67 s 22s,943,106 1s9,s76 271,703 3,305,541 5,7',|0,00'7 1,840,867 2,105,092 4,8 13,298 3,042,256 692,6ss 1,231,348 632,029 6,251,291 r,369,386 95,042 1,097,894 't2,582 29,998,86 I 3,833,45 r 230,2t6 9,2s2,130 48 1,1 33 1,383,564 s 6,427,600 S 21,949,194 St. Lucie County, Florida Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities September 30,2016 Total governmental fund balances Amounts reported for govemmental activities in the statement of net position are different because: $ 188,308,167 Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds. 574,971,597 Accrued other post employment benefits and net pension liability are not financial uses, and therefore, are not reported in the funds. (143,981,880) Long-term liabilities are not due and payable in the current period, and therefore, are not reported in the funds. (128,829,515) Bonds premiums are not financial resources, and therefore, are not reported in the funds. (4,106,715) Deferred charges on refunding are not financial uses, and therefore, are not reported in the funds. 3,014,212 Accrued long term debt interest expenses is not a current use of resources, and therefore, is not reported in governmental funds. (515,030) Special assessment receivables are not financial resources in the cr.rrrent period, and therefore, are reported as deferred inflows in the funds. Grant revenues are not recognized in the funds statement because the resources are not available; however, these amounts are reflected as revenues at the government-wide level, and therefore, deferred inflows are no longer applicable. 9,869,411 3,302,920 Intemal service funds are used by management to charge the costs of insurance activities to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the 11,789,753 statement of net position. Deferred outflows and deferred inflows related to the pension plan are not financial resources or hnancial uses, and therefore, are not reported at the fund level. 43,193,274 Net position of governmental activities $ 557,016,100 The accompanying notes to hnancial statements are an integral part of this financial statement. 22 THIS PAGE INTENTIONALLY LEFT BLANK St. Lucie Counfy, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For tle year ended September 30, 2016 General Trsnsportation Trust Fine and Forfeiture SHI Special Assessment Bond REVENUES Taxes: Property Tourist Motor fuel I-ocal communication lncal business Licenses and permits Franchise fees Impact fees SpeciaI assessments Intergovemmental Charges for services Fines and forfeitures Investment income Contributions fiom propert5r owners Miscellaneous Total revenues E)GENDITTJRES Current: General govemment Public safety Physical environment Transportation Economic enviroment Human seruices Culture and recreation Court-related Capital outlay Debt service: Principal retirement Interest Other Total expenditures Excess (defi ciency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out kase purchase proceeds Proceeds from sale of capital assets Issuance of long-tem debt Total other financing sources (uses) Net change in fund balalces Fund balances - beginaing Changes in inventories of supplies Fund balances - endilg 64,',l08,344 852,r52 25,1t9 4,024,278 12,432,s32 12,593,97 5 1,581,158 '154,862 49,756 6,345,680 3',7,522,604 '11,t72,329 2,327,589 r 87,03 I 3,3 88,549 '1,440,534 10,991,1 I 9 | 1,123,441 1,68 r,349 I 3,530 601 5t,291,710 t,897 ,737 1,3 81,936 302,608 2',19,966 2,64t,020 8,866,699 1,499,892 3,944,092 584,682 r92,t62 7,560 788,446 1,5 l0 137,000 1,t43 138,143 651,813 (r0,?95) 1,881,014 1,193,016 3, r 25,1 55 700 43,824 4,335,955 99,471 219,069 782,234 8,502,912 7 s4,700 209,382 t0,484 103,367,8s6 9,70s,188 s6,346,973 ',189,9s6 145,848,676 (42,480,820) 51,524,483 (6,34'.7,220) 782,t53 10,259,7 t2 (ss4,s24\ 87,643 ( 144,5 I 0) 17,736,10',1 3 8,6 1 0,866 3,692,631 (49,098,9 10) 4s,9s9,416 (56,867)(4s,406,273't (10,795) 3,478,s96 s2,949,464 (61 1,391) 9,320,006 30,072 (6,79s,40'.1) 2 1,658,788 641,018 1,512,226 s 56,428,060 $ 8,738,687 $ 14,863,381 $ 2,153,244 The accompanying notes to financial statements are an integral pan of *ris financial statement. 24 N Lennard Road Bonds I and S 629,739 20,915 650,654 Other Governmental Funds Total Governmental Funds l 35,98 1,402 3,652,354 4,271,932 852,1s2 82,622 t82,745 4,024,2',78 7,t02,056 1,7 1 3,1 80 32,299,138 1 8,1 85,270 2,898,407 2,404,958 r,865,010 7,058,232 12,980 298,4',10 r91,9t6 7,56 I,598 19,981,348 3,652,354 I,146,777 57,503 182,04s 294,995 13,619,934 4,209,359 1,014,641 949,764 1,596,185 t,'748,832 l1,360,458 48,453,737 226,875,962 289,r16 5,35 1,813 2,2'14,783 6,010,413 2,687,277 8,021,414 r,947,932 3,107,431 4,s6s,426 2,209,073 l 3,900,9s3 '1,620,464 3,730,788 96,736 s6,172,690 (7,7 l 8,953) r0,903,221 (9,337;72t) 9,305,379 22,359 3,505,468 t4,398,'.l06 6,679,7s3 43,220,641 86,049,441 5,0 14,866 16,711,357 6,836,3 73 10,547,965 I 5,845,66r t7,276,606 22,213,49't 8,3 70,s38 4,033,323 97,879 236,278,t47 (9,402, l 85) 66,20',t,984 (6s,s97,290) 9,305,379 804,s l 2 3,505,468 14,226,051 4,823,868r,271,15',t 24;719,757 33s,000 146.890 481,890 s,640,929 168,764 t,920,669 (8,622)(649,s12) (8,622\ (649,sr2) t60,142 2.043.617 $ 2,203,7s9 25.990.9t4 71,413,761 183,617,619 (163,392) (133,320) s '17,930,122 $ 188,308,167 St. Lucie County, Florida Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances ofGovernmental Funds to the Statement of Activities For the Year Ended September 30, 2016 Net change in fund balances - total govemmental funds Amount reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost ofthose assets are allocated over their estimated useful lives as depreciation. Expenditures for capital assets Less current year depreciation Capital asset contributions from private sources Governmental funds only report the disposal ofassets to the extent proceeds are received from the sale or transfer. In the statement ofactivities, a gain or loss is reported for each disposal. Debt proceeds provide current financial resources to govemmental funds, but debt increases long-term liabilities in the statement ofnet position. Debt proceeds Repayment ofbond principal, notes principal, and capital lease principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Bond principal payment Notes payable principal payment Capital lease principal pa)rrnent Some expenses reported in the statement ofactivities do not require the use ofcurrent financial resources , and therefore, are not reported as expenditures in govemmental funds. Change in accrued interest expense Change in accrued arbitrage estimate Amortization of bond premium Amortization of defened amount on refunding Change in compensated absences Change in other post ernployment benefits Change in net pension expense Governmental funds report non-exchange transactions when the applicable eligibility requirements have been met and resources are available. However, in the statement of activities, non-exchange kansactions are recognized when the eligibility requirements are met. Some revenues (special assessments) reported in the govemmental funds have been recognized as revenues in the prior fiscal year in the statement ofactivities. Change in inventories is reflected as an deduction in fund balance; however, on the statement ofactivities, it is recorded as an increase in expense. Internal service funds are used by management to charge the costs of insurance services to individual funds. The change in net position is reported with governmental activities on the statement ofactivities. Change in net position of govemmental activities $ 22,273,497 (20,064,293) $ 3,967,t04 3,988,364 4ts,073 $ (137,879) 19,0'79 326,448 (264,990) 4t6,256 (3,242,342) (6,1 16,2s0) 4,823,868 2,209,204 3,232,877 47,482 (12,810,847) 8,370,541 (8,999,678) t,751,689 (778,63s) (1 33,320) (2,378,49t) The accompanying notes to financial statements are an integral part of this financial statement. St. Lucie County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended September 30, 2016 Budgeted Amounts REVENUES Property Local communication Local business Franchise fees Intergovernmental Charges for services Fines and forfeitures Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITIIRES General govemment Public safety Physical environrrent Transportation Economic environment Human services Culture and recreation Court-related Capital outlay Principal retirement Interest Total expenditures Excess of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Proceeds from sale of capital assets Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending Original Final 64,708,344 852,r52 25,119 4,024,279 t2,432,532 12,593,975 1,581,l5 8 7s4,862 49,7s6 6,34s,680 102,313,072 103,367,856 41,902,877 37,522,604 74,260,929 11,172,329 2,327,589 187,03 I 3,388,549 7,440,s34 10,991, 1 19 tl,147,897 11,123,44r 3,016,955 1,681,349 13,530 13,530 601 601 154,174,546 158,119,839 t45,848,676 t2,27t,163 (s3,2s3,4s2) (ss,806,767) (42,480,820) r3,32s,947 53,623,954 52,984,667 5t,524,483 (1,460,184) (5,632,48s) (6,397,43s) (6,347,220) s0,21s 30,565 812,391 782,153 (30,238) 48,022,034 47,399,623 45,959,416 (1,440,207) (5,231,418) (8,407,144) 3,478,s96 11,885,740 42,275,486 4s,474,073 s2,949,464 7,475,39t $ 37,044,068 $ 37,066,929 $ s6,428,060 $ 19,361,131 63,237,923 925,000 25,000 3,879,800 t3,45t,476 1 1,91 8, 15 1 1,759,300 s69,4ss 71,150 s,083,839 100,921,094 40,326,t69 73,496,342 2,509,1 13 280,000 4,501,545 7,894,r56 12,463,109 1r,474,446 1,169,394 60,282 $ 63,237,923 92s,000 25,000 3,879,800 14,407,526 1t,632,239 1,598,387 600,467 76,650 s,930,080 2,396,323 300,000 4,907,833 8,129,701 12,043,t93 Actual Amounts Variance with Final Budget Positive (Negative) $ 1,470,421 (72,848) 119 144,418 (1,974,994) 961,736 (r1,22e) I s4,395 (26,894) 41s,600 1,0s4,784 4,380,213 3,099,600 68,734 1t2,969 1,5r9,284 689,167 1,052,074 24,456 1,335,606 The accompanying notes to financial statements are an integral pan of this financial statement. 27 St. Lucie County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Transportation Trust For the Year Ended September 30, 2016 Budseted Amounts Original Variance with Final Budget Actual Positive Amounts (Negative) REVENUES Motor fuel Licenses and permits Impact fees lntergovernmental Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITT]RES General govemment Transportation Capital outlay Principal retirement Interest Total expenditures Excess of revenues under expenditures oTrrER FTNANCTNG SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fimds balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 219,069 219,069 15,856 1,721,884 1,881,014 157,130 6,422,621 8,130,649 9,705,188 1,574,539 782,234 $ 2,442,050 S 3,926,9'78 37,737 828,2r4 I I,l 18,676 t,467,789 208,0t2 2,442,050 g 3,926,978 37,',737 3,125,155 S 700 683,1 05 700 828,214 13,010,024 8,502,912 1,373,867 7 s4,7 00 208,012 209,382 43,824 43,8244,33s,9ss 408,97799,471 6t,734 4s,980 4,s07,112 619,t67 (1,370) tr,844 t1,844 10,484 1,360 13,634,535 t5,431,961 10,259,7t2 5,172,249 (7,211,914) (7,301,3t2) (ss4,s24) 6,746,788 64,075 15 1,7 l9 81,643 (64,076) (218,1ss) (218,1s5) (144,510) 73,64s (154,080) (66,436) (56,867) 9,s69 (7,36s,994) (7,367,748) (611,391) 6,7s6,357 8,73 l , r l0 8,990,998 9,320,006 329,008 - 30,072 30,072 $ 1,365,1 16 $ 1,623,250 $ 8,738,687 $ 7,1 15,437 St. Lucie County, Florida Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Fine and Forfeiture For the Year Ended September 30, 2016 Budseted Amounts Original Variance with Final Budget Actual Positive Amounts (Negative) REVENUES Property lntergovernmental Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues E)(PENDITURES General government Public safety Economic environment Court-related Capital outlay Principal retirement Interest Total expendihres Excess of revenues under expenditures oTHER FINANCING SOURCES (USES) Transfers in Transfers out kase purchase proceeds Total other financing sources (uses) Net change in funds balances Fund balances - beginning Fund balances - ending 1,029,453 1,029,4s3 1,193,016 163,563 ss,266,874 55,913,495 s6,346,973 433,478 $ s0,514,520 s 2,O32,741 1,269,893 3 t 1,067 109,200 50,5 I 4,520 2,672,16s 1,269,893 118,264 r09,200 $ s1,291,710 t,891,737 1,381,936 302,608 279,966 2,64t,020 8,866,699 t,499,892 3,944,O92 s84,682 192,162 7.560 s 777,190 ('774,428) 112,043 (15,656) t70,766 3,777,138 9,520,787 1,5 13,000 4,262,862 I 0,985,905 2t4,422 15,076 15,076 21,263,098 30,289,190 25,624,30s 4,t68,2s0 3,958,622 9,461,472 1,5 I 3,000 4,0r2,6'73 2,08 l,833 2t4.422 17,736,107 38,6 10,866 3,692,637 (49,098,9 l 0) l,l36,l l8 654,088 13,108 3 l 8,770 10,40r,223 22,260 7,516 1 2,553,083 t2,986,56134,003,776 4.168,250 (47 s,613) 1,429,644 (8,967,201 ) (8,013, l 70) 4,913,391 (49,'774,608) (s0,s28,s54) - 8,967,20t (4s,606,3s8) (37,393,103) (4s,406,213) (lt,602,s82) (11,768,798)(6,795,407) 2t,229,884 2r,67r,728 21,658,788 (12,940) s 9,627,302 $ 9,902,930 S 14,863,381 S 4,960,451 29 St. Lucie County, Florida Statement of Fund Net Position Proprietary Funds September 30, 20'16 Business Tvoe Activities Bailing & Recycling Facility Golf Cource Water & Sewer District Nonmajor Enterprise Funds ASSETS Cunenl assets: Cash and investments Restric'ted assets: Cash and investments-customer deposits Accounts receivable, net lnterest receivable Due from other governments lnventories Prepaid items Total cunent assets Non-cunent assets: Restricted assets: Cash and investments-landfill closure Cash and investments-renewal and replacement Land Buildings and improvements Machinery and equipment Accumulated depreciation Construction in progress Total non{unent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred amount on refunding Defened outflows related to pensions Total deferred outflows of resources LIABILITIES Cunent liabilities: Accounts payable and other current liabilities Matured bonds payable Matured interest payable Claims and judgements payable Deposits payable from restricted assets Due to other governments Bonds and notes payable, net Accrued compensated absences Uneamed revenues Total current liabilities Non-cunent liabilities: Advances from other funds Liabilities payable from restricted assets Bonds and notes payable, net Accrued compensated absences, net Landfill long{erm care liabilities OPEB liability Net pension liability Total non-current liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Defened inflows related to pensions NET ASSETS Net investment in capital assets Restricted for: Landfill closure Renewal and replacement Unrestricted Total net position $ 9,986,011 $206,448 $ 201,450 2,000 978.590 32.201 37,1 3s 1,735 36,715 4,U2,173 $ 221,399 443,905 1 3,346 9,744,480 14,311 204,141 27,772 781,187 1,729,310 184,388 26,e46 1; 37; 11,424,289 269,330 4,720,841 9,991,074 3,725,417 4,905,601 1.268.050 2.453.436 40,1 50,788 12,071,268 3,577,069 50,348,423 19,948,627 407,944 281,0U 474,257 (30,302,430) (3,583,888) (19,001,177) (15,040,244) 7jU,785 3,228 946,988 159,896 37 ,745/29 1,672,403 35,736,6s't 8,053,033 49,169,718 1,941,733 40,457,492 18,044j07 298,682 - 707,937 - 6,087,904 3,304,953 1U,629 69,020 77,445 2,000 23,297 507,622 370,000 478,17s 221,399 777 5 1 5,000 22,236 20,312,913 26,988 318,570 14,311 12,O54 82,273 77,834 14,086,631 791,941 271,557 122,117 519,2173,078,268 614,195 4'13,316 1,365,118 21,396,422 7,U2,676 20,875,3U 1,962,169 22,993,095 7,155,685 22,990,543 2,389,377 (10,996) 3,144 8, 167 6,680 u,020,012 1.672.403 14,129,483 7,271,846 420,4U 707,937 781,187(6,901,s12) (6,626,974) 3,088,6s2 8,178,917 $ 27,538,964 $ (4,954,571) $ 17,926,072 $ 16,231,950 1,3s1,345 262,525 168,608 583,9001,351,345 262,525 467 ,290 583,900 1,250,678 201,450 1M,54s The accompanying notes to flnancial statements are an integral part of this financial statement 10,267 1 ,596,673 1 13,009 2j15209 427 ,20A 30 Govemmsntal Acdvftles lntemal S6rvice Total Funds $ 23,979,112 439,160 1,658,837 79,988 36,715 211,3U 388 $ 13,503,227 94,943 33,783 158,636 26,227 108,977 26,405,534 13,925,85s 3,725,417 1.489,124 1 0,356,397 114,024,907 13.234.s13 (67 ,927,739) 216,388 102,926 ('t13,722\ 2,1sr'.,315 370,000 478,'t75 439,160 12,431 515,000 272,351 't,55't,333 659,238 5,034 6,087,904 3,304,953 20,312,913 308,471 14,086,631 1,7U,832 49,597 5,470,897 199,980 51,276,601 249,577 55,528,700 2,479,586 6,995 1,550 57,093,744 260,261 420,464 1,489,124(2,260,9171 11,529,492 $ 56,742,415 $ 11,789,753 2,366,378 U,7752,665,060 U,ns 10,267 14,404 4,252,099 2,230,009 31 St. Lucie County, Florida Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Year Ended September 30, 2016 Business Bailing & Recycling Facility $ 17,318,921 133,63'l Golf Course Water & Sewer District Nonmajor Enterprise Funds Operating revenues: Charges for services Charges for services, pledged for revenue bonds Miscellaneous Miscellaneous, pledged for revenue bonds Tolal operating revenues Operating expenses: Salaries, wages and employee beneflts Contractual services, materials and supplies Depreciation Total operating expenses Operating income (loss) Nonoperatin g revenues (expenses): lnveslment income lnveslment income, pledged for revenue bonds lnterest expense Total nonoperating revenues (expenses) lncome (loss) before contributions and transfers Capital contributions Transfers out Change in net position Net position - beginning Net position - ending - 77,144 17,452,552 1,s6s,063 6,000,449 4,465,898 1,236,384 $ 128,679 -$ 5,923,305 4,427,852 38,046 4,0s5,623 12,637.960 1 85,1 70 7,4U 719,435 474,726 1,5U,221 639,344 3,662,716 1,901,409 56,953. (872,039) 185,'170 7,4U (8'15,086) 113,920 (547,9s8)(43,068)(610,9s6)312,802 (594,907) (15,787) 91,378 (1,1 42,865)(s8,855) (s19,578) 312,802 28,68r,829 (4,895,716) 18,445,650 15,919,148 $ 27,5s8,964 $ (4,954,571) $ 17,926,072 $ 16,231,9s0 1 I 3,920 The accompanying notes to financial statements are an integral part of this flnancial statement. 32 Govemmental Activities lnternal ServiceTotal Funds $ 22,98s,'157 $ 12,369,s86 5,923,305 300,356 763,842 77,144 29,283,962 13,133,428 6,834,005 11,944,542 18,841,429 3,704,190 3,989,176 19,070 29,664,610 15,667,802 (380,648) (2,sv,374\ 306,554 56,953 (872,039) 15s,883 (s08,s32) 155,883 (889,180) (2,s78,491) 91,378 (610,694) (1,408,496) (2,378,491) s8,150,91 1 14J682M $ s6,742,415 $ 11,789,753 St Lucie County, Florida Statement of Cash Flows Proprietary Funds For the year ended September 30, 20 16 Business Tw€ Activities Baillng & Recycling Golf Facility Course $ 17,324,889 $ (12,005,924) (3,750,145) '133,631 (3,663,535) (3,663,535) 1 90,579 (733,128) $ 1,492,097 533,593 (9,927) (2,105) (18,721\ 133,751 12,927 18,000 79,863 1,205,933 (s99,636) (u2,2U\ (3,228], (3,228\ 7,O14 Water & Sewer District $ 5,923.817 (3,873,047) (431,586) 77,144 Nonmalor Enterprise Funds $ 4,429,772 (1,804,738) (1,425,4261 38,046 Cash flows from operating activities Cash received from customers Cash paid to suppliers Cash paid for employee services Other receipts Net cash provided by (used for) opeEting activities Cash flows from noncapital financing activities Transfers out Advances ftom other funds Net cash used for nonc€pital linancing activities Cash flours from capltal and related flnanclng activities Capital contributions Principal paid on capital debt lnterest paid on capital debt Purchases of capital assets Net cash used for capital and related financing activities Cash flows from investing actlvltles lnterest on investments Net increase (decrease) in cash and investments Cash and investments at beginning ofyear Cash and investments at end of year Cash and investments classilied as: Cunent assets Restricted assets Total cash and investments at end of year Reconciliation of net op€rating income (loss) to net cash provided by (used for) operating activities Operating income (lms) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation Landfill closure expense Changes in assels and liabilities: Accounts receivable Due from other governments lnventories Prepaid ltems Accounts payable and accrued liabilities Claims payable Accrued compensated absences Deposits payable Uneamed revenues oPEB liability Pension liability Net cash provided by (used for) op€rating activities '1.702.451'l ,702,451 92,722 1 ,696,328 1,237,654 (594,907) (1s,787) (342,s00)(ss4,907) (358,287) 91,378 (360,000) (ess,e50)(908,89s) (86,s06) (2,137,467\ (86,s06) 57,510 1 09.81 0 (2,365,412) (261,77e\ (383,629) 1,260,95816,278,290 470,227 5,355, 138 9,279,020$ '13,e12,878 $ 208,448 $ 4,971,s09 $ '10,s39,978 9,986,0'11 206,448 4,042j73 9,744,4803,926,867 2,000 929,336 795,498$ 13,912,878 $ 208,448 $ 4,971,s09 $ 10,s39,978 (s0,532) $ 56,816 (30,982) 2,747 6,122 36,145 13,117 530 21,713 2U130 $ 1,658,877 12,500 82 (212,511) 7,674 (5,480) 8,485 '198,882 781,386 .1,673 (370) 111,887 23,807 244 37,686196,101 37,M6 22,571 82,459$ 1,702,451 $ 92,722 $ 'l,696,328 $ 1,237,654 The accompanying notes to flnancial statements are an integral part of this financial statement. 34 Gowmmental Activi6es 28,88/',411 $ 12,394,595(18,283,345) (2,839,4s6)(6,249,411) (12,634,2941 lnternal S€illce Funds 31,382,675 15,658,921 $ 29,6s2,813 $ 13,503,227 23,979j12 13,503,227 5,653,701 $ 29,632,813 $ 13,503,227 (380,648) $ 3,989,176 5Si,593 (26,736) (2,105) (15,974) 5,834 69,272 57,525 12,7il 530 147,747 (2,534,374) 19,070 40,962 (30,3s7) (13,284) 63,626 31s,875 (206.,7621 197 14/U 3,4323s8,177 '11,858 $ 4,729,1ss $ (2,315,35s) 377,500 763,U2 4,729,1s5 (2,315,353) (610,694) (342,500) (9s3,194) 91,378 (360,000) (959,950) (4,662,164) (5,890,736) 364,913 (1,749,862) (2,1341 (2,'t3/.l '161,793 (2,1s5,694) 35 St. Lucie County, Florida Statement of Fiduciary Net Position Fiduciary Funds September 30,2016 ASSETS Cash and investments Accounts receivable Due from other governments Interest receivable Total assets LIABILITIES Accounts payable and other current liabilities Deposits payable Due to other governments Agency funds on hand Total liabilities Agency $ 24,237,721 798 49,838 14.094 $ 24,302,451 67,764 491,563 4,506,969 19,236,255 $ 24,302,451 The accompanying notes to financial statements are an integral part of this financial statement. St. Lucie County, Florida Notes to Financial Statements Year Ended September 30, 2016Note Paqe1. Summary of Significant Accounting Policies 38 Reporting Entity 38 Measurement Focus and Bases of Accounting 39 Bases of Presentation 43 Assets, Liabilities, Deferred Outflows/lnflows of Resources and Net Position/Fund Balance 45 Cash and lnvestments 45 Restricted Assets 45 lnterfund Receivables and Payables 45lnventories 45 Prepaid lnsurance 46CapitalAssets 46Pensions 46 Deferred Outflows/lnflows of Resources 46 Unamortized Bond Discounts and Premiums 47 Unearned Revenues 47 Accrued Compensated Absences 47 Obligation for Bond Arbitrage Rebate 47 Landfill Closure Costs 48 lndirect Costs 48Budgets 482. Reconciliation of Government-wide and Fund Financial Statements 483. Cash and lnvestments 53Deposits 53lnvestments 534. Property Tax Revenues 575. Capital Assets 586. Restricted Cash and lnvestments 607. lnterfund Balances 608. lnterfund Transfers 619. Receivables, Payables and Advances 61Receivables 61Payables 62Advance 63 10. Longterm Liabilities 64 Schedule of Changes in Long-Term Debt 64 Schedule of Outstanding Debt 65 Deferred Amount on Refunding 67 Debt Service Requirements 67 Bond Covenants 68 Summary of Defeased Debt Outstanding 69 SpecialAssessment Debt 69 Capital Leases 69 11. Landfill Closure and Postclosure Care Costs 71 12. Defined Benefit Pension Plans 72 13. Operating Leases 80 14. Conduit Debt 81 15. Fund Balances 8216. Fund Equity Deficit 8317. Risk Management 83 18. Post Employment Benefits 84 19. Commitments and Contingencies 87 20. Subsequent Events 88 St. Lucie County, Florida Notes to Financial Statements Year Ended September 30,2016 NOTE 1 _ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the County have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards that which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. A. Reporting Entity St. Lucie County, Florida (The "County"), is a non-charter govemment pursuant to Article VIII, Section (1X0, of the Constitution of the State of Florida. The County financial statements contained herein include and combine the operations of the Board of County Commissioners (the "Board") and the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector (the "Constifutional Officers"). The Clerk of the Circuit Court serves as ex-officio Clerk of the Board in accordance with Article VIII, Section (1Xd), of the Constitution of the State of Florida, and Section 125.17, Florida Statutes. ln evaluating the County as a reporting entity, management has addressed all potential component units. To be includable within the County's financial statements, the component unit must be financially accountable or the exclusion of the nature and significance of their relationship with the County would cause the financial statements to be misleading or incomplete. Blended component units must be financially accountable to the County; there must be a financial burden/benefit relationship and the entity, although legally separate, must operate like a fund or department of the County. Based on applying the above criteria, the County included the following component units in the financial statements as blended component units. 1. St. Lucie County Mosquito Control District - The District was created by Chapter 29502, Laws of Florida, Acts of 1953. The District controls mosquitoes and other arthropods of public health importance for the County and is governed by a Board comprised of the County's elected Commissioners. The Board establishes the ad valorem millage for the District. The District is reported as a special revenue fund and does not issue separate financial statements. 2. Erosion Control District - The District was created by Chapter 67-200I, Laws of Florida. The District re-nourishes critically-eroded beaches impacted by inlet management and natural processes in order to protect coastal resources, public and private properties and public infrastructures and is governed by a Board comprised of the County's elected Commissioners. The Board establishes the ad valorem millage for the District. The District is reported as a special revenue fund and does not issue separate financial statements. 3. St. Lucie County Water and Sewer District - The District was created by Section 153.53, Florida Statutes. The District provides water, wastewater and reclaimed water service to customers within the unincorporated areas of the County and is govemed by a Board comprised of the County's elected Commissioners. The rates for user charges and bond issuance authorizations are approved by St. Lucie County, tr'lorida Notes to Financial Statements (continued) Year Ended September 30,2016 the Board and the County is legally obligated to provide resources in case there are deficiencies in debt service payments and resources are not available from any other remedies. The District is reported as an enterprise fund and does not issue separate financial statements. 4. St. Lucie County Housing Finance Authority - The Authority was created by Section 159.601, Florida Statutes. The Authority provides administrative services for housing assistance within the County. The main revenue source is the residual funds from loan progmms. The Authority is financially dependent on the County and the Board of County Commissioners appoint a majority of the Authority's Board. The Authority is reported as a special revenue fund and does not issue separate financial statements. 5. Central Florida Foreign-Trade Zone,Inc. (the "Trade Zone") - The Trade Zone was created by Sections 288.35 through 288.38, Florida Statutes h 1997 to facilitate the economic development of the County. The Board of County Commissioners appoint a majority of the Trade Zone's Board. The Trade Zone is reported as part of the general fund and does not issue separate financial statements. 6. St. Lucie County Sustainability District - The District was created by Article VII, Section 10 of the Florida Constitution, Chapter 125, F.S., and Chapter 189, F.S. for the purpose of encouraging, accommodating, and financing energy efficiency and renewable energy improvements on residential and commercial properties in the County through non-ad valorem assessments. The District is reported as a special revenue fund and does not issue separate financial statements. 7. Treasure Coast Education Research and Development Authority - The Authority was created by Section 159.703, Florida Stafutes to foster economic development and broaden the economic base of St. Lucie County. . The Authority is financially dependent on the County and the Board of County Commissioners appoint a majority of the Authority's Board. The Authority is reported as part of the general fund and does not issue separate financial statements. Other Entities St. Lucie, lndian fuver, Martin and Okeechobee counties jointly fund the Office of the Medical Examiner, 19th Judicial Circuit. The County partially funds the Indian fuver Crime Laboratory, which is supported by various local law enforcement agencies. Books and records are maintained by the Sheriff. The Govemor of the State of Florida appoints the Medical Examiner. The County's only financial responsibility for the Medical Examiner is to fund its required percentage of the operating costs of that office out of the General Fund. The other counties participate in funding the Medical Examiner's office in the same manner. lndian River State College maintains the accounting records for the Medical Examiner's office. B. Measurement F ocus and Bases of Accounting The basic financial statements of the County are composed of the following: o Government-wide financial statements o Fund financial statements 39 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 o Notes to financial statements 1. Government-wide Financial Statements The govemment-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. This means that revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. In applying the "susceptible to accrual" concept to intergovernmental revenues pursuant to GASB Statement No. 33, as amended by GASB Statement No. 36, Recipient Reportine of Certain Shared Nonexchange Revenues (the County may act as either provider or recipient), the provider should recognize liabilities and expenses and the recipient should recognize receivables and revenues when the applicable eligibility requirements including time requirements, are met. Resources transmitted before the eligibility requirements are met should, under most circumstances, be reported as advances by the provider and unearned revenues by the recipient. As a general rule the effect of interfirnd activity has been eliminated from the govemment-wide financial statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment arrd 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Business-type activities distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Operating expenses for enterprise funds include cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The government-wide financial statements do not include the fiduciary funds of the County. 2. tr'und f inancial Statements The underlying accounting system of the County is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 equity, revenues and expenditures (or expenses), as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the constraints placed by the revenue sources. Fund financial statements for the primary government's governmental and proprietary funds display information about major funds individually and nonmajor funds in the aggregate. The fiduciary statement includes financial information for the agency fund, which represents assets held by the County in a custodial capacity for other individuals or governments. Governmental Funds Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay current period liabilities. For this purpose, the County considers revenues to be available if they are collected within 45 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Franchise fees, licenses, sales taxes, gas taxes, operating and capital grants, and interest associated with the current fiscal period are all considered to be accrual items and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable only when the County receives cash. Under the current financial resources measurement focus (modified accrual basis), only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of "available spendable resources". Govemmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of"available spendable resources" during a period. The non-current portion of long-term receivables (special assessments) due to govemmental funds are reported on their balance sheets because of their spending measurement focus. The non-current portions of other long-term receivables are offset by fund balance reserve accounts. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as govemmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are not recorded as fund assets; they are recorded as expenditures in the fund financial statements. The proceeds of long-term debt are recorded as an "other financing source". Debt service, compensated absences, and claims and judgments expenditures are recorded when the payment is made. a) Fund Balance Category GASB Statement 54 - Fund Balance Reporting and Governmental Fund Tlpe Definitions requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes St. Lucie County, Florida Notes to tr'inancial Statements (continued) Year Ended September 30,2016 for which amounts in those funds can be spent. There are five categories of fund balance for governmental funds under Statement 54: Nonspendable f,'und Balance - This category includes amounts that cannot be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. Restricted Fund Balance - This category includes amounts that have externally imposed restrictions or restrictions imposed by laws. Committed Fund Balance - This category usually includes the amount that can only be used for specific pulposes adopted by the Board of County Commissioners with an ordinance. This category also includes contractual obligations which require a formal approval from the Board of County Commissioners or a Constitutional Officer and the funding has been set aside for the purpose. This type of fund balance can only be removed by the Board of County Commissioners or a Constitutional Officer through the same approval process. Assigned Fund Balance - This category usually consists of the Board of County Commissioners' intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the County Administrator pursuant to Board action. For fund balance reserye assignments, see the fund balance policy below. Other assigned fund balances are approved by the Board as part ofthe budget approval process through budget resolutions. Unassigned Fund Balance - Residual amounts in the general fund that do not meet any of the other fund balance classifications. b) Fund Balance Policy The County has a fund balance and reserve policy that set forth the following reserves of fund balance: Reserve Policy - The County's financial policy requires the Board of County Commissioners to establish an emergency reserve in the general fund. The amount should be 5o/o of the total operating budget excluding funds that have a minimum of l0%o of the fund's operating budget or $2,000,000 in reserves, whichever is greater. The amount can only be utilized for natural and manmade disasters. The amount is presented as an assigned fund balance of the general fund. Budget Deficit Reserve Policy - The Board of County Commissioners established a budget deficit reserve policy during fiscal year 2010. The intent of the reserve is to assign the needed amount from unassigned fund balance for the following year's budget purposes. The amount may be adjusted by the County Administrator and can only be utilized for budget balancing needs. The amount is presented as an assigned fund balance of the general fund. c) Fund Balance Spending Hierarchy For all governmental funds except special revenue funds, when resfricted, committed, assigned, and unassigned fund balances are combined in a fun{ qualified expenditures are paid first from restricted or St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 committed fund balance, as appropriate, then assigned and finally unassigned fund balances. Qualifred expenditures reduce the appropriate fund balances when the expenditure is incurred. For special revenue funds, when restricted and committed fund balances are combined in a special revenue fund, expenditures are paid first from committed fund balance, as appropriate, then restricted fund balances. Proprietary Funds The County's enterprise funds and internal service fund are proprietary funds and are presented using the economic resources measurement focus (accrual basis of accounting). Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. All current and non-current assets and liabilities are included on the Statement of Net Position. Revenues represent increases and expenses represent decreases in total net position on the Statement of Revenues, Expenses, and Changes in Net Position. Proprietary fund operating revenues, such as charges for services, and operating expenses, such as salaries, supplies, and contracted sewices, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies, taxes, and investment earnings, and non-operating expenses, such as interest expense, loss on sale ofassets, and arbitrage expense, result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are recorded in the fund as assets. The proceeds of long-term debt are recorded as a fund liability. Amounts paid to reduce long-term indebtedness are reported as a reduction ofthe related liabilities. Fiduciary Fund The agency fund reports only assets and liabilities; therefore, it does not have a measurement focus. However, it uses the accrual basis of accounting to recognize receivables and payables. C. Bases of Presentation GASB Statement 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues, or expenditures/expenses of either fund category and the governmental and proprietary combined) for the determination of major funds. The County has elected to use GASB 34 minimum criteria for major fund determination. The nonmajor funds are combined in a column titled, Other Govemmental Funds. The details of the nonmajor funds are listed in the combining section under supplemental information. 1. Governmental Major Funds General Fund - The General Fund is the general operating fund of the County. It is used to account for all financial activity not accounted for in another fund. Transportation Trust Fund - The Transportation Trust Fund accounts for the operations of the road and bridge and engineering departments. Financing is provided primarily by gas taxes. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,,2016 The Transportation Trust Fund did not meet the GASB 34 minimum criteria for major fund determination for fiscal year 2016. However, the County elected this firnd to be a major fund to enhance consistency from the prior fiscal year. Fine and Forfeiture Fund - The Fine and Forfeiture Fund accounts for law enforcement and court-related projects that are funded by ad valorem taxes, fines, filing fees, and proceeds from confiscated property. SHI Special Assessment Bond Fund - The SHI Special Assessment Bond Fund accounts for debt service assessment revenues pledged to pay the South Hutchinson Island 1998 special assessment debts. N.LennardRoadBondsI&SFund-TheN.LennardRoadBondsI&SFundaccountsfordebtservice assessment revenues pledged to pay the N. Lennard Road Phase 1,2 & 3 special assessment debts. Impact Fee Fund - The Impact Fee Fund is used to account for impact fees used for parks, libraries, public buildings and correctional buildings. 2. Proprietary Major tr'unds Bailing & Recycline Facility Fund - The Bailing & Recycling Facility Fund provides funding to operate the County's landfills, a recycling division and the hazardous waste division. In addition, estimated costs of closure and long-term care of the landfill operations are included in this fund. Golf Course Fund - The Golf Course Fund accounts for the operation of a high quality, low cost, service oriented public golfcourse for the County. Water & Sewer District Fund - The Water &Sewer District Fund accounts for the operation of a in various sections of the County.water and sewer facility for certain residents 3. Other Fund Types Internal Service Fund - The Intemal Service Fund accounts for the payment of countywide health and property and casualty liability insurances. Funding is provided by user charges to the various departments of the Board and Constitutional Officers (except the Sheriff). Fiduciary Funds - The Agency Funds are used to account for the collection and disbursement of monies by the County on behalf of other govenrments and individuals, such as Constitutional Officer investments, public law library funds, certain sales tax revenues, various Municipal Service Benefit Units (MSBU), cash bonds, traffic fines, motor vehicle fees, ad valorem taxes, delinquent taxes, and process serving within the County. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 4. Non-current Governmental Assets/Liabilities GASB Statement 34 requires non-current governmental assets (such as land, buildings, and improvements) and non-current governmental liabilities (such as general obligation bonds and capital leases) to be reported in the governmental activities column in the government-wide Statement of Net Position. D. Assets, Liabilities, Deferred Outflowsflnflows of Resources and Net Position/Fund Balance 1. Cash and Investments The County maintains a cash and investment pool that is available for use by all funds. Eamings from the pooled investments are allocated to the respective funds based on applicable cash participation by each fund. The investment pool is managed such that all participating funds have the ability to deposit and withdraw cash as if they were demand deposit accounts. Therefore, all balances representing participants' equity in the investment pool are classified as cash and investments for financial statement purposes. For the statement of cash flows, the County considers cash and investments to include the Local Govemment Surplus Funds Trust Fund (Florida State Board of Administration) and the Florida Local Government Investment Trust Fund. In accordance with Sections 125.3I and 218.415, Florida Statutes, and the Board's investment policy, the Board is authorized to invest in negotiable direct obligations of, or obligations the principal and interest of which are unconditionally guaranteed by, the United States Government, obligations of US corporations, commercial papers, the State lnvestment Pool, Florida Local Government Investment Trust, nonnegotiable interest-bearing time certificates of deposit, money market accounts, repurchase agreements, equities and mutual funds. All investments are reported at fair value. 2. Restricted Assets Certain assets of the County are classified as restricted assets on the Statement of Net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed extemally by creditors, grantors, contributors, or laws or regulations of other governments. 3. Interfund Receivables and Payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due tolfrom other funds". Long term lending/borrowing alrangements between funds are classified as advances. Any residual balances outstanding between the governmental activities and business-type activities are reported in the govemment-wide financial statements as "intemal balances". 4. Inventories Inventories of supplies in the special revenue funds are recognized as expenditures at the time of purchase. Inventories on hand are recorded at cost on a first in-first out or weighted average basis. In addition, a colresponding entry is made for a non-spendable fund balance. Inventories in the proprietary fund types are recorded at cost using the weighted average method and recognized as expenses as they are consumed. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 5. Prepaid Insurance Normal operating prepaid insurance is expensed when paid. Prepaid bond insurance is capitalized as prepaid insurance and amortized over the life of the bonds. 6. Capital Assets Capital assets, which include land, buildings, improvements, equipment and construction in progress, are reported in the applicable governmental or business-type activities column. The County defines software and equipment as capital assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. ln addition, the County defines land, building, infrastructure, and improvements other than buildings as capital assets with an initial cost of $25,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost. Donated capital assets are recorded at estimated fair market value at the date of the donation. The costs of normal maintenance and repairs that do not add to the value of the asset, or materially extend its useful life, are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of assets constructed. Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: buildings, 7-39 years; improvements, 5-50 years; and equipm ent, 2-10 years. The County holds legal title to the capital assets (except the equipment of the Sheriff) used in the operation of the Board, Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. The Sheriff holds legal title to the equipment used in its operations and is accountable for them under Florida law. 7. Pensions In the government-wide statement of net position, liabilities are recognized for the County's proportionate share of each pension plan's net pension liability. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Florida Retirement System (FRS) defined benefit plan and the Health Insurance Subsidy (HIS) defined benefit plan and additions to/deductions from the FRS and the HIS fiduciary net position have been determined on the same basis as they are reported by the FRS and the HIS plans. For this purpose, defined benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported as fair value. 8. Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net position/firnd balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 then. The deferred amount on refunding and deferred outflows related to the pension plan reported on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows related to the pension plan represent the County's share of the FRS (Florida Retirement System) and HIS (Health Insurance subsidy) pension liabilities. Deferred inflows of resources represent an acquisition of net position/fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The unavailable revenues are reported only in the govemmental funds balance sheet. The sources of the unavailable revenues are special assessments on road paving, utility projects and grant reimbursements. This amount is deferred and recognized as revenues in the period the amounts become available. The deferred inflows related to the pension plan represent the County's share of the FRS and HIS pension liabilities, which is only reported on the Statement of Net Position. 9. Unamortized Bond Discounts and Premiums Proprietary firnd revenue bond discounts and premiums are presented on the government-wide and fund financial statements. The costs are amortized over the life of the bonds using the appropriate method of accounting. For financial reporting, the unamortized bond discounts and premiums are netted against the applicable long-term debt. The governmental fund bond discounts and premiums are presented on the government-wide financial statements. The costs are amortized over the life of the bonds using the appropriate method of accounting. For financial reporting, the unamortized bond discounts and premiums are netted against the applicable long-term debt. 10. Unearned Revenues Unearned revenues reported in government-wide financial statements will be recognized as revenues in the fiscal year they are earned in accordance with the accrual basis of accounting. 11. Accrued Compensated Absences The County accrues unused portions of vacation pay and comp time in the period the fund liability is incurred. As permitted by Governmental Accounting Standards Board Statement No. 16, the vesting method is used to accrue the sick leave liability. The liability is based on the sick leave accumulated at year-end by those employees who are currently eligible to receive termination payments as well as other employees who are expected to become eligible to receive such payments. Even though the County has appropriated, accumulated and earmarked expendable available fund resources for these amounts, the portion not normally expected to be liquidated with expendable available financial resources is not reported as a fund liability (in accordance with Interpretation No. 6 of the Governmental Accounting Standards Board - Recognition and Measurement of Certain Liabilities and Expenditures) in governmental fund financial statements. The accrued compensated absence liabilities payable from available resources are recognized as expenditures in governmental funds if they have matured. 12. Obligation for Bond Arbitrage Rebate Pursuant to Section 148(f) of the U.S. lnternal Revenue Code, the County must rebate to the United States Govemment the excess of interest eamed from the investment of certain debt proceeds and 47 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 pledged revenues over the yield rate ofthe applicable debt. This approach treats the rebate as an expense when it is actually payable to the federal government. 13. Landfill Closure Costs Under the terms of current state and federal regulations, the Bailing & Recycling Facility is required to place a final cover on closed landfill areas, and to perform certain monitoring and maintenance functions for a period of up to 30 years after closure. The Bailing & Recycling Facility recognizes these costs of closure and post-closure maintenance over the active life of each landfill area, based on landfill capacity used during the period. Required obligations for closure and post-closure costs are recognized in the Bailing & Recycling Facility Fund. 14. Indirect Costs The County utilizes a pre-determined automatic indirect cost distribution formula to distribute its annual indirect costs. Certain indirect costs are included in the program expense reported for individual functions and activities. E. Budgets Pursuant to Section 129.03, Florida Statutes, budgets are prepared and adopted for the Board after public hearings for the govemmental funds, in accordance with Section 200.65, Florida Statutes. The Constitutional Officers submit, at various times, to the Board and to certain divisions within the Department of Revenue, State of Florida, a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them, as set forth in Chapter 129 Florida Statutes. The Department of Revenue, State of Florida, has the final authority on the operating budgets for the Tax Collector and Property Appraiser included in the General Fund. The Florida Court Clerk Operations Corporation has the final authority on the court related operating budget for the Clerk of the Circuit Court included in the general fund. The County utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general, special revenue, debt service and capital projects funds. The legal level of budgetary control is at the fund level. As a result, deficits in the budget columns of the accompanying financial statements may occur in individual expenditure line items. NOTE 2 _ RECONCILIATION OF GOVERNMENT-WIDE AND FTJND FINANCIAL STATEMENTS A. Explanation of Differences between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position The governmental fund balance sheet includes a reconciliation betu,eenfund balance-total governmental funds and net position-governmental activities as reported in the government-wide statement of net position. "Total fund balances" of the County's governmental funds (S188,308,167) differs from "net position" of governmental activities ($557,016,100) reported in the statement of net position. This difference primarily results from the long-term economic focus of the statement of net position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated below. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Capital related items When capital assets (land, building and improvements, equipment, and construction in progress) that are to be used in the govemmental activities are purchased or constructed, the costs of those assets are reported as expenditures in govemmental funds. However, the statement of net position included those capital assets among the assets of the County as a whole. Other post-employment benefi ts/net pension liabilitv Accrued other post-employment benefits are not financial uses, and therefore, are not reported in the funds. Cost of capital assets Less: Accumulated depreciation Total Other post-employment benefi ts Net pension liability Total Bonds payable Notes payable Special assessment bonds Capital lease payable Compensated absences Total Deferred amount on refundins The deferred amount on refunding of bonds, net of accumulated deferred outflows of resources in the statement of net position. Deferred amount on refunding Les s : Amort ization expense Total Bond premiums Less : Amort ization expense Total $ 855,917,958 (280,946,36t) $ s74,97r,s97 $ (56,980,000) (40,357,751) (6,588,054) (10,001,268) (r4,902,442) $ (128,829,515) amortization, is reflected in the $ 3,279,201 (264,999) $ 3,0t4.2t2 $ (4,433,163) 326,448 $ (4,106,715) Long-term debt transactions Long-term liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported in the funds. Balances at September 30, 2016 were: Bond premiums Certain premiums are reflected net of accumulated amortization in the notes and bonds payable in the statement of net position. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Accrued interest Accrued interest is not a current financial use, and therefore, is not reported in govemmental funds. Bonds interest payable $ (195,614) Notes interest payable (167,729) Capital interest payable (151,687) Total $ (515,030) Deferred inflows of resources Unavailable revenues: Governmental fund financial statements report uneamed revenues or revenues which are measurable but not available as deferred inflows of resources - unavailable revenues. However, unavailable revenues in governmental funds are susceptible to full accrual on the government- wide financial statements. Unearned revenues $ 9,869,417 Deferred inflows related to pension: This represents the County's share of the FRS and HIS pension liabilities. It is an acquisition of net position by the County that is applicable to a future reporting period, and therefore, is not reported in govemmental funds. Deferred inflows related to the pension plan $ (1,481,355) Deferred outflows of resources - deferred outflows related to the pension plan This represents the County's share of the FRS and HIS pension liabilities. It is a consumption of net position by the County that is applicable to a future reporting period and therefore, is not reported in governmental funds. Deferred outflows related to the pension plan $ 44,674,629 Accrued grant revenues Some grant revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the governmental funds financial statements. Accrued grant revenues $ 3,302,820 Internal service fund Management uses the intemal service fund to charge the costs of insurance activities to individual funds. The assets and liabilities of the intemal service fund are included in governmental activities in the statement of net position because they serve the governmental activities of the County. lntemal service fund net position $ t 1,789,753 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Elimination of interfrrnd receivable/payable Interfund receivables and payables in the amount of $1,583,232 between governmental activities have been eliminated for the statement of net position. B. Explanation of Differences Between the Governmental Fund Statement of Revenues, Bxpenditures, and Changes in Fund Balances and the Government-wide Statement of Activities The "net change in fund balances" for governmental funds (an increase of $4,823,868) differs from the "change in net position" for governmental activities (a decrease of $4,665,310) reported in the statement of activities. The differences arise primarily from the long-term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below. Capital related items When capital assets that are to be used in govemmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year. In the statement of activities, the gain and loss on the disposal of capital assets are reported. However, in the governmental funds, only the proceeds from those sales increase financial resources. Capital outlay Depreciation Difference Gain on disposal of capital assets In the statement of activities, the capital assets contributions are However, in the governmental funds, this type of activity is not financial resources focus. $ 22,273,497 (20,064,293) 2.209.204 47.482 reported as program revenues. reported because ofthe current $ 3,232,811Capital asset contributions from private sources Long-term debt transactions Debt proceeds provide current financial resources to governmental funds, but debt increases long- term liabilities in the statement of net position. Debt proceeds $ (12,810,847) Repayments of bond principal, note principal, and capital lease principal are reported as expenditures in the govemmental funds and, thus, have the effect of reducing fund balance 51 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 because current financial resources have been used. However, the principal payments reduce the liabilities in the statement of net position and do not result in an expense in the statement of activities. Some expenses reported in the statement of activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds. Bond principal payments made Note principal payments made Capital lease principal payments made Total Net change in compensated absences Net change in accrued arbitrage estimate Net change in accrued interest expense Amortization of bond premiums Amortization of deferred amount on refunding Net change in other post-employment benefits Net change in net pension liability Net adjustment $ 3,967,104 3,988,364 415,073 $ 8,370,541 $ 416,256 19,079 (r37,879) 326,447 (264,989) (3,242,342) (6,176,250) s (8,999,678) Accrued grant revenues Some grant revenues are not recognized in the current period because the resources are not available; therefore, these revenues are not reported in the fund financial statements. The amount listed below is the net of the prior and current fiscal years and is included in the statement of activities. Net change in accrued grant revenues 1,7s 1,689 Assessment revenues Governmental funds report initial special assessments as uneamed revenues. Revenues are recognized when they are collected. However, in the statement of activities, initial special assessments are set up as receivables and recognized as program revenues. This is the amount collected in fiscal year 2016. Assessment revenues $ (778,635) Chanse in inventories @riesisreflectedasareductiontofundba1anceatthefundlevel'However, in the statement of activities, it is recognized as an expense. Change in inventories 52 $ (133,320) St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Intemal service firnd change in net position The assets and liabilities of the intemal service fund are included in governmental activities in the statement of net position because they primarily serve governmental activities of the County. The change in net position is reported with governmental activities on the statement of activities. lntemal service fund change in net position $ (2,378,497) Reclassifi cation and eliminations Transfers in and transfers out in the amount of $65,597,290 between govemmental activities are eliminated in the government-wide financial statements. NOTE 3 _ CASH AND INVESTMENTS The County maintains a cash and investment pool that is available for use by all funds except those whose cash and investments must be segregated due to bond covenants or other legal restrictions. A. Deposits All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments. The carrying amount of these deposits at September 30, 2016 was $50,724,315 and the bank balance was $54,954,490. All the deposits were covered by the Federal Deposit lnsurance Corporation (FDIC) or collateralized in accordance with the "Florida Security for Public Deposits Act". Under the Act, every qualified public depository shall deposit with the State Treasurer eligible collateral having a market value equal to a percentage of the average daily balance for each month that all public deposits are in excess of any applicable deposit insurance. The collateral percentage ranges from 25%o to 200%o, depending on the credibility of the qualified public depository. B. Investments Section 218.415, Florida Statutes, the County's Investment Policy, and various bond covenants authorize permitted investments, asset allocation limits and issuer limits, credit ratings requirements and maturity limits to protect the County's cash and investment assets. The permitted investments include the following: o Certificates of deposit o Money market accounts o Savings accounts o 2 year Repurchase agreements . Local Government Surplus Funds Trust Fund administered by the Florida State Board of Administration (SBA), also known as Florida Prime . Florida Local Government Investment Trust administered by the Florida Association of Court Clerks, also known as Florida Trust . Obligations of the U.S. Govemment . Obligations of govemment agencies unconditionally guaranteed by the U.S. Govemment . Obligations of the Federal Farm Credit Banks St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 . Obligations of the Federal Home Loan Mortgage Corporation, including Federal Home Loan Mortgage Corporation participation certificates . Obligations of the Federal Home Loan Bank o Obligations of the Government National Mortgage Association o Obligations of the Federal National Mortgage Association o Obligations or Notes of U.S. corporations with at least two of the following three minimum ratings: A- by Standard and Poor's, ,{3 by Moody's, or A- by Fitch o Commercial paper of any United States company that is rated, at the time of purchase, - Prime-1 by Moody's and -A-1 by Standard & Poor's (prime commercial paper). If the commercial paper is backed by a letter of credit (-LOC), the long-term debt of the LOC provider must be rated A or better by at least two nationally recognized rating agencies . Securities of any management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. ss.80a-1 et seq., provided the portfolio is limited to U.S. Govemment obligations and to repurchase agreements fully collateralized by U.S. Government obligations o Supranational Agencies issued by multilateralorganization of governments of which the U.S. is a shareholder and voting member, and are denominated in U.S. dollars o Equities, shares in open-end and no-load equity and./or fixed-income mutual funds and exchange- traded tunds (EFTs) At September 30,2016, the County had the following investments and effective duration presented in terms of years: lnvestment Maturity (Year) lnvestment Type United States Treasuries United States Agencies Supranational Agencies Corporate Obligations Equities Exchange Traded Funds Florida Trust Florida Prime Mutual Fund Money Market Collateralized Money Market Fund Certificate of Deposits Fair Value Less Than I From l-3 From 4-6 80,t04,231 $ 58,857,438 5,4s3,628 48,720,036 4,976,060 843,685 3,064,146 3,710,623 997,721 98s,914 10,399,606 $ 12,583,055 2,499,250 s,740,900 4,976,060 843,68s 3,064,146 3,770,623 991,721 98s,9t4 s7,388,921 $ 4r,723,006 2,954,378 19,055,920 12,315,704 4,551,377 23.923.216 8,000,000 8,000,000 $ 21s,713,482 $ 53,860,960 s 121,122,22s $ 40,790,297 Investment holdings consist of $80, 104,23 1 in direct obligations of the United States Treasury Securities, $58,857,438 in direct debt issued by agencies of the U.S. Government which are backed by the full faith and credit of the United States, $5,453 ,628 in debt issued by multilateral organization of governments of which the U.S is a shareholder,$48,720,036 in Corporate Obligations and $5,819,745 in equities and ETFs. These types of investment are reported at fair value in accordance with GASB Statement No.31 "Accounting and Financial Reporting for certain Investments and for Extemal Investment Pools". These inyestments are held in trust by US Bank, a depository, in the County's name. Investments are reported at fair value based on the average price obtained from an independent source. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 The Corlnty categories its fair value measurements within the fair value hierarchy established by the GASB Statement 12 - Fair Value Measurement and Application. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The County uses a market approach in measuring fair value that uses process and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level I is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level2 uses significant other observable inputs when obtaining prices for identical or similar assets or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances. Based on the criteria in the preceding paragraph, the investments listed above are all Level 1 assets except the Florida Trust, Florida Prime and certificate of deposits. Florida Trust and Florida Prime are 2a7 -llke extemal investment pools. They are measured at the net asset value per share determined by the pool. Certificate of deposits are interest bearing investment contracts with banking institutions and secured by the Florida Security for Public Deposits Act, Chapter 280, Florida Statutes. lnterest receivable on the County's investment portfolios amounted to $597,331 as of September 30, 2016. The amount recorded in the Statement of Net Position was $583,237 and $14,094 was recorded in the Agency Fund. 1. Interest Rate Risk The County's investment policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements. In an effort to minimize interest rate risk, the County's investment policy requires that no individual security can have a maturity greater than five and one-halfyears. 2. Credit Risk Authorized investments include only those securities with the highest credit ratings. The money market funds are rated AAAm by Standard & Poors. The FLGIT Day to Day Fund has an investment rating of AAAm by Standard & Poors. The U.S. Treasuries and the Agencies are rated AA+ by Standard & Poor's and Aaa by Moody's Investor Services. Two exceptions are Corporate Obligations and Commercial Papers. Corporate Obligations are rated with at least two of the following three minimum ratings: A- by Standard and Poor's, ,A,3 by Moody's, or A- by Fitch. Commercial Papers are rated with A-1 by Standard and Poor's or Prime-1 by Moody's at the time of purchase. 3. Custodial Credit Risk The County's investment policy pursuant to Section 218.415(18), Florida Statutes requires that securities, with the exception of certificates of deposits, Florida Trust, Florida Prime and money market accounts, shall be held with a third party custodian; and all securities purchased by, and all collateral obtained by the Board should be properly designated as an asset of the Board. The securities must be held in an account separate and apart from the assets of the financial institution. A third party custodian is defined as any bank depository chartered by the Federal Government, the State of Florida, or any St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 other state or territory of the United States which has a branch or principal place of business in the State of Florida as defined in Section 658.12, Florida Statutes, or by a national association organized and existing under the laws of the United States, which is authorized to accept and execute trusts and which is doing business in the State of Florida. As of September 30,2016, the County's investrnents were held with a third-party custodian as required by the County's investrnent policy. 4. Concentration of Credit risk The County's investrnent policy has established asset allocation and issuer limi15 ea the investments, which are designed to reduce concentration of credit risk of the County's investment portfolio. Florida Prime 40%N/A N/A Florida Trust 35%N/A N/A Certificates of Deoosit 40%t0%2 vears Ireasuries 7s%N/A 5.5 vears United States Government Agencies s0%2s%5.5 vears Federal Instrumentalities (United States Govemment Soonsored Asencies)s0%2s%5.5 years Repurchase Agreement rc%10%I year Monev Market Funds 80o/o 25%N/A Corporate Oblieations or Corporate Notes 2s%s%5 years Commercial Paper 25%5%270 davs Suoranational Asencies 2s%t0%5.5 years Equities and ETFs N/A N/A As of September 30, 2016, all the County's investments were below the maximum allowed limits and the County had the following issuer concentrations based on fair value: Issuer United States Treasuries United States Agencies Supranational Agencies Corporate Obligations Equities Exchange Traded Funds Florida Trust Florida Prime Mutual Fund Money Market Collateralized Money Market Fund Certificate of Deposits Total Amount $ 80,104,231 58,857,438 5,453,628 48,720,036 4,976,060 843,685 3,064,146 3,770,623 997,721 985,914 8,000,000 $ 215,773,482 Percentage of Portfolio 37.11% 27.28% 253% 22.58yo 2.31% 0.39% t.42yo r.75% 0.46% 0.46% 3.71o/o 100% St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 3012016 NOTE 4 _ PROPERTY TAX REVENUES Taxable values for all property are established as of January 1, which is the date of lien, for the fiscal year starting October 1. Properly tax revenues recog:nized for the 2015-2016 fiscal year were levied in October 2015. A11 taxes are due and payable on November I or as soon as the assessments roll is certified and delivered to the Tax Collector. Discounts are allowed for early payment at the rate of 4%o in November,3o/o inDecember, 2o/o in January, and l%o in February. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to June 1; therefore, there were no material taxes receivable at fiscal year end. 57 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 NOTEs_CAPITALASSETS Capital asset activity for the year ended Governmental Activities: Governmental fund: Capital assets, not depreciated: Land Construction in progress Total capital assets, not depreciated Capital assets, depreciated: Buildings Improvements Equipment Total capital assets, depreciated Less accumulated depreciation for: Buildings Improvements Equipment Total accumulated depreciation Total capital assets depreciated, net Govemment Activities capital assets, net lnternal service fund: Capital assets, not being depreciated: Construction in progress Capital assets, depreciated: Buildings Equipment Total capital assets, depreciated Less accumulated depreciation for: Buildings * Equipment * Total accumulated depreciation Total capital assets depreciated, net Intemal service fund capital assets, net September 30,2016, was as follows: Beginning Increases & Decreases & Balance Transfers in Transfers out Ending Balance $ 160,488,649 $s89,467 17,76s,64119,93s,269 180,423,918 1 8,3ss, u4 $- (756,781) (7s6,787) $ 161,078,1 16 36,944,129 198,022,245 218,262,929 3s1,613,177 88,019,607 657 ,895,113 (90,735,786) (123,984,702) (66,22s,873) (280,946,361) 376,949,352 $ s74,971,s97 $ s4,669 218,239,230 348,403,732 84,572,597 651,215,559 (84,786,s79) (116,245,28r) (61,125,583) (262,1s7,443) 389,058,1 16 s 569,482,034 $ 54,669 23,699 3,209,445 4,730,524 7,963,668 (s,949,207) (7,739,421) (6,375,665) (20,064,293) (12,r00,62s) s 6,2s4,489 $- (l,283,5 r4) (1,283,514) 1,275,375 1,275,375 (8, l3e) $ (764,926) $- 216,388 t00,792 2,134 317,180 2,134 216,388 102,926 319,314 (21,742) (85,980) (113,722) 20s,s92 $ 260,261 (22,194)(5,548) $- * The beginning balances for accumulated depreciation are adjusted. The total amount is not affected. 58 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Depreciation was charged to the following functions: Govemmental Activities: General Govemment Public Safety Physical Environment Transportation Human Services Culture/Recreation Court Related Economic Environment Total Govemmental Activities Depreciation Expense 2,894,984 3,791,050 1,022,273 5,454,951 1,603,318 3,336,s44 1,979,861 382 $ 20,083,363 Beginning Balance Increases & Transfers in Decreases & Transfers out Ending Balance Business-Twe Activities: Capital assets, not depreciated: Land Construction in progress Total capital assets, not depreciated Capital assets, depreciated: Buildings Improvements Equipment Total capital assets, depreciated Less accumulated depreciation for: Buildings Improvements Equipment Total accumulated depreciation Total capital assets depreciated, net Business-Type activities capital assets, net $ 10,356,397 5,lll,760 15,468,157 41,3ts,s73 71,782,484 12,673,955 12s,832,012 (21,037,221) (34,011,358) (8,93 1,603) (63,980,1 82) 61,851,830 s 17,3r9,987 $- 3,681,437 3,681,437 866,8s0 602,177 1,469,027 (1,326,062) (2,081,29s) (581,8 l e) (3,989,176) (2,s20,149) (41,619) (41,619) 41,619 41,619 $ r 0,356,397 8,304,897 18,661,294 41,375,573 12,649,334 t3,234,513 127,259,420 (22,363,283) (36,092,6s3) (9,471,803) (67,927,739) s9,331,681 $ (488,300) $ 77,992,97s Depreciation was charged to the following functions: Business-T-'rpe Activiti es : Bailing & Recycling Facility Water and Sewer Golf Course Total Business-Type Activities Depreciation Expense $ 1,492,097 2,440,263 56,816 $ 3,989,176 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 NOTE 6 - RESTRICTED CASH AND INVESTMENTS Various bond covenants, resolutions and state regulations require that the County restrict cash and investments. Restricted cash and investments are as follows: Governmental Activities Business-tyo e Activities Nonmajor Bailing &Water & Nonmajor General Governmental Recycling Golf Sewer Enterprise Assets Fund Funds Facility Course District Funds Total Landfill closing costs $ Landfill postclosure $ $ 3,302,068 $ -$ -$ $ 3,302,068- 420,464 - 420,464 C&D Processing Facility - 2,885 - 2,885 customer deposits 1,301,041 12,518 201,450 2,000 221,399 l4,3ll 1,758,719 Renewal and replacement 701 ,937 181,187 1,489,124 Total $ 1,307,041 $ 12,518$3,926,867 $2,000$ 929,336 $ 795,498$6,973,260 Liabilities payable from restricted assets are as follows: Governmental Activities Business-tvpe Activities Nonmajor Bailing &Water & Nonmajor General Governmental Recycling Golf Sewer EnterpriseLiabilities Fund Funds Facilitv Course District Funds Total Landfillclosingcosts $ - $ $ 3,302,068 $ - $ $ $ 3,302,068 C&D Processing Facility 2,885 - 2,885 customer deposits 1,307,041 12,518 201,450 2,000 221,399 l4,3ll 1,758,719 Total $ 1,307,041 $ 12,518 S 3,506,403 $ 2,000 $ 221,399 $ l4,3ll $ 5,063,672 NOTE 7 _ INTERFTIND BALAIICES Interfi.rnd balances at September 30,2076, consisted of the following: Pavable Fund Nonmajor General Govemmental Receivable Fund Fund Funds Total General Fund Transportation Trust Fund Fine and Forfeiture Fund N. Lennard Road Bonds I&S Fund Nonmajor Govemmental Funds Total $ -$ 709,248$ 709,248 SHI Special Assessment Bond Fund 4,974 t1 606.740 3,973 2s8,280 _t7 - 606,740 - 4,974 - 3,973 - 258,280 $ 873,984 $ 709,248 $ 1,583,232 The General Fund due to other frrnds total balance represents the excess fees from the Property Appraiser, Tax Collector, and Sheriff, which are expected to be paid within 31 days after the fiscal year end as required by Florida State Statutes. The General Fund due from the nonmajor governmental funds St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 represents temporary cash flow loans, which are expected to be repaid within 45 days after the fiscal year end. NOTE 8 _ INTERT'UND TRANSFERS Interfund transfers for the year ended September 30,2016, consisted of the following: Transfers In: Transportation Fine and Nonmajor General Trust Forfeiture Govemmental Transfers Out:Fund Fund Fund Funds Total General Fund Transportation Trust Fund Fine and Forfeiture Fund GolfCourse Fund Total SHI Special Assessment Bond Fund 10,795 N. Lennard Road Bonds I & S Fund 8,622 - 8,622 Impact Fees Fund 649,5t2 649,512 Nonmajor Govemmental Funds 2,589,656 148 3,432,637 3,315,280 9,337,721 Bailing & Recycling Facility Fund 315,907 - 260,000 19,000 s94,907 $ -$ 87,495$ $ 6,2s9,72s$ 6,347,220 48,599,503 - 144,sr0 144,s10-_ 499,407_ ^tn?rr,,1;? 1s.787 1s.787 s 51,524,483 $ 87,643 $ 3,692,637 $ t0,903,221 $ 66,207,984 Customer Miscellaneous Total $ 418,708 $ 33,592 $ 452,300 14,459 28,871 - 12,980 12,980 Transfers are used to 1) move revenues from the fund that is required to collect them by Florida Statutes and/or budgetary requirements to the fund that is required to expend them by those requirements, including amounts provided as matching funds for various programs, aldZ) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due. NOTE 9 _ RECEIVABLES, PAYABLES, AND ADVANCES A. Accounts Receivable Accounts receivable at September 30,2016, were as follows: Governmental Funds: General Fund Transportation Trust Fund Fine and Forfeiture Fund Impact Fee Fund - 14,459- 28,871 Other governmental funds 66,833 694,403 761,236 Total govemmental funds $ 528,871 $ 740,975 $ 1,269,846 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Bailing&RecyclingFacilityFund $ 978,590 $ - $ 978,590 Proprietarv Funds: Golf Course Fund Water & Sewer District Fund Total enterprise funds Intemal Service Fund Customer Miscellaneous Total Nonmajor enterprise funds 204,141 32,201 443,90s 1,658,83 7 94,943 - 32,201 - 443,90s - 204,141- 1,6s8,837 - 94,943 Totalproprietarytunds $ 1,753,780 $ - $ 1,753,780 B. Special Assessments Receivable Special assessments receivable at September 30,2016 were as follows: General Fund - Special Lighting District $ 5,054 SHI Special Assessment Bond Fund N. Lennard Road I & S Bond Fund Nonmajor funds Total 5,430,418 4,223,841 2 15,158 $ 9,8'74,471 The receivables for the SHI Special Assessment Bond Fund, N. Lennard Road I&S Bond Fund and non major fund (SLC Sustainability District Fund) have been reported as Deferred Inflows (Unavailable Revenues) on the Governmental Funds Balance Sheet. C. Payables Payables at September 30,2016, were as follows: AccountsPayableandOlllel_C_rgle_qll,jlbilities Vendors Retainage and Benelits Total Governmental funds: General Fund Transportation Trust Fund Fine and Forfeiture Fund Impact Fee Fund s 2,694,176 $ 26,47s $ 2,940,25s $ 5,660,906 Nonmajor govemmental tunds 3,055,861 1,099,198 222,817 4,377,876 Total govemmental tunds $ 7,757,795 $ 1,870,771 $ 3,473,674 fi 13,102,240 424,029 487,367 1,096,362 74s,098 133,082 557,1 I lr77,s20 664,887- 1,84r,460 62 St. Lucie County, Florida Notes to f inancial Statements (continued) Year Ended September 30,2016 Proprietarv funds: Accrued Salaries Enterprise funds Vendors Retainage and Benefits Total Bailing&RecyclingFacilityFund $ 1,158,829 $ $ 91,849 $ 1,250,678 Fiduciarv Funds: Agency fund D. Deposits Payable Deposits payable at September 30,2016, were as follows: 18,707 77,44513,880 s07,62244,957 3 18,s70 $ 1,953,558 $ 31,364 $ 169,393 $ 2,154,315 2,023,742 - 6,829 2,030,s71 s 67,764 $ $- $ 67,764 Golf Course Fund Water & Sewer District Fund Nonmajor enterprise funds Total enterprise funds Intemal Service Fund Governmental Funds: General Fund s8,73 8462,378 31,364 273,613 Total proprietary tunds $ 3,977,300 $ 31,364 $ 176,222 $ 4,184,886 Vendor Rental Security Customer Total Deposits Deposits Deposits Deposits $ 1,272,891 $ 30,500 $ 3,6s0 $ 1,307,041 Nonmajor govemmental funds 12,518 - 12,518 Total govemmental tunds $ 1,285,409 $ 30,500 $ 3,650 $ 1,319,559 Proprietarv Funds: Bailing&RecyclingFacilityFund $ - $ - $ 201,450 $ 201,450 Golf Course Fund Water & Sewer District Fund Nonmajor enterprise funds 2,000 _ 2,000221,399 221,399 - 14,371 t4,311 Totalproprietarytunds $ 2,000 $ - $ 437,160 $ 439,160 Fiduciarv Funds:Agencytund S $ - $ 491,563 $ 491,563 E. Claims Payable Claims payable, $659,238, represents actuarially determined health insurance claims incurred but not yet reported atyear end in the lntemal Service Fund and are expected to be paid within one year. F. Advances Advances at September 30,2016, were as follows: Receivable Fund Pavable Fund Amount General Fund Golf Course Fund $ 6,087,904 The $6,087,904 advance to the Golf Course Fund is for a land lease of airport property. 63 St. Lucie County, tr'lorida Notes to tr'inancial Statements (continued) Year Ended September 30,2016 NOTE 10 _ LONG-TERM LIABILITIES A. Schedules of Changes in Long-Term Debt Long-term liability activity for the year ended September 30,2076, was as follows: Beginning Balance Additions Ending Reductions Balance Due within One Year Govemmental Activities: Govemmental Funds: Bonds and notes payable: General obligation debt Revenue bonds Revenue notes Special assessment bonds Plus issuance premiums Total bonds and notes payable, net Capital leases Compensated absences Govemmental funds liabilities Intemal Service Fund: Compensated absences Internal Service Fund liabilities Business-tvpe Activities: Bonds and notes payable: Water and sewer revenue bonds/notes Plus issuance premiums Total bonds and notes payable, net Compensated absences I-andfill long-term care liability Business-type activities liabilities $ 290,000 $ 60,320,000 41,026,t15 3,320,000 6,739,690 185,468 4,433,163 1 12,808,968 3,505,468 1,110,962 9,305,379 1s,318,698 6,929,242 $ t29,238,628 $ 19,740,089 $ 4,837 $ 10,i67 $ 4,837 $ 10,167 $ (270,000) $ 20,000 (3,360,000) s6,960,000 (3,988,364) 4o,3s7,751(337,104) 6,588,0s4(326,448) 4,t06,71s (8,281,916) 108,032,s20 (41s,073) 10,001,268 (7,34s,498) 14,902,442 $ (16,042,487) $ 132,936,230 $ 20,000 3,520,000 4,160,463 360,934 326,448 8,387,845 1,0 19,823 6.9't5,565 $ 16,383,233 $ (e,e70) $ (9,e70) $ s,034 $5,034 $ 5,034 s 5,034 $ 20,29s,000 1,028,901 21,323,901 523,29'1 t3,860,720 s 3s,707,91 8 329,87s 225,911 $ 555,786 s (370,000) (12s,988) (49s,e88) (272,3s0) $ (768,338) $ 19,925,000 902,9r) 20,82'7,9t3 580,822 14,086,631 $ 35,49s,366 $ s1s,000 125,988 640,988 )'t) 1\n $ 913,338 For governmental activities, claims and judgments and compensated absences are generally liquidated by the General Fund. The County has general obligation, revenue, and special assessment bonds and revenue notes outstanding at year end. Payments on the general obligation and revenue bonds are made by the debt service funds. Revenue notes such as: South County Regional Stadium, Tourist Development Tax Revenue, Rock Road Jail Security, Fairgrounds, and both special assessment bonds are also paid from debt service funds. The Parks Referendum line of credit, Port Deepening, MSBU interim line of credit and the Energy Efficiency Revenue Nole, all part of the revenue notes, are paid from special revenue funds. In addition, three capital leases are paid from special revenue funds. The following debts were issued in FY 2016: 1. On December 8, 2015, the Board entered into an Equipment Lease/Purchase Agreement with banc of America Public Capital Corp. The lease amount was $9,305,379 with an annual interest rate of 2.37%o. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 The proceeds were used to acquire certain energy efficient equipment. The lease expires on April 1, 2031. 2. On December 31,2015, the Board entered into a Communication System Lease/Purchase Agreement with Motorola Solutions, Inc. The equipment leased is being manufactured and installed by Motorola Solutions, Inc. The lease amount was $8,967,201 with an annual interest rate of 3.547%. The lease expires on January 1,2031. As of September 30, 2016,the equipment was still being built by Motorola Solutions, Inc. No debt proceeds have been recorded. 3. On January 29,2016, the Board issued a Capital Improvement Revenue Bond, Series 20164 in the amount of $3,320,000. The proceeds were used to finance the upgrade of the security control system at the County's Rock Road Jail. The loan has a final maturity of October 1,2030. 4. A Not To Exceed $1,000,000 Taxable Special Assessment Bond, Series 2014 was issued in FY20I4. The Bond is a non-revolving line of credit to pay the costs of certain solar and energy improvements for qualified borrowers (home or business owners of St Lucie County). The loan is paid back by the borrowers through a special assessment progmm. The total amount disbursed to the borrowers is $185,468 in FY 2016. B. Schedule of Outstanding Debt The following is a schedule of bonds outstanding at September 30,2016: Amount Amount Interesl Purpose of Issue Issued Outstanding Rates Governmental Funds: General Obligation Bonds: Port and Airport Authority, Series I 997 Port ofFort Pierce Revenue Bonds: Sales Tax Revenue Refimding Bonds, Countyprojects Series 2013A Sales Tax Revenue Refunding Bonds, County projects Series 20138 Transportation (Gas Tax) Revenue Bond, Countyprojects Series 2007 Capital Improvement Revenue Bond, Tax Collector building project 7,000,000 6,760,000 2.74yo Series 201 5 Total Revenue Bonds Plus: Net Premiums Net Revenue Bonds Revenue Notes: Amy Corps of Engineers, Series 1997 Port deepening Florida Power and Light, Series 2001 S. County Regional Stadium lighting system Special Assessment lrnprovementNote, Interim financing ofconstniction 10,000,000 - variable (2) Series 2006 costs for vmious MSBU projects Public Improvement Revenue Bond, Fairgrounds Series 2002B Public Improvement Revenue Bond, South county regional Note, Series 2008A Capital Improvement Revenue Refunding Parks referendum MSTU Note, Series 201 I $ 3,500,000 $ 20,000 s.00%-s.37sok 47,28s,000 4i,18s,000 2.00%-5.00% 9,40s,000 8,r 90,000 2.00%-5.00% 29,685,000 825,000 4.00%4.2s% s6,960,000 4,106,715 61,066,715 797,960 433,822 6.125% (t) t34,966 54,470 8.82% 1,510,000 128,413 3.80% 1,700,000 950,000 4.88% 10,330,000 6.830,000 2.r7% 65 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Purpose of Issue Amount Issued Amount Outstanding Interest Rates 40357,75r (l) The Amy Corps ofEngineers, Series 1997 was issued with a variable rate. The initial rate was 6.125% and the interest rate is subject to change once every five (5) years. The interest rate has not been changed since issuance. (2) The Special Assessment lmprovement Note, Series 2006 was issued as a line of credit. The interest rate is determined at the t'ime of each draw. Governmental Funds (continued): Capital Improvement Revenue Note, Series 2007 Tourist Development Tax Revenue Bond, Series 201 1A Tourist Development Tax Revenue Bond, Series 201 1B Transportation Revenue Refunding Bond, Series 2015 Capital Improvement Refunding Bond Series 2014 Capital Improvement Refunding Bon4 Series 2016 Total Revenue Notes Soecial Assessment Bonds: Series 1998 Series 2010A Series 2010B Series 2010C Series 2014 (Taxable) Total Special Assessment Bonds $10 Million Cap Imp Note Mets stadium iniprovements Mets stadium improvements Partially refimding Transportation Revenue Bond, Series 2007 Refunding Public knprovement Revenue Refimding Bon Series 2004 and State Revenue Sharing Improvement Revenue Bond. Series 2005 Jail Security Upgrade South Hutchinson Island 98 Lennard Rd I Lennard Rd 2 Ipnnard Rd 3 Sustainability District Water Conseryation Equipment Heary Road & Bridge Equipment ATT Capital Fat Pipe Energy Efficient Equipment Communication Equipment s 10,000,000 6,225,000 1,460,000 1 1,390,000 10,495,000 1,400,000 1,062,889 27,153 9,30s,379 8,967,20r $ 2,92r,046 2.r3% 4,355,000 2.37% 1,040,000 3.31% I1,250,000 2.29% 9.200.000 2.41% 3,320,000 3,195,000 2.600/o 14,920,000 2,740,000 3.6s%-4.90% 4,3ss,000 2,890,000 3;70% 860,000 575,000 3.70% 260,000 170,000 3.70yo 1,000,000 213,054 variable (1) 6,s88,054 (1) The Sustainability District Taxable Special Assessment Bond, Series 2014 was issued as a line ofcredit. The interest rate is determined at the time of each draw. Caoital kases: Water Consewation Prcject - Rock Road Jail Master Equipment Lase Property Appmiser Capital Icase FPL Equipment Lease/Purchme Agreement Motorola Lese/Pucbme Agreement (1 ) Total Capital Leases r9,92s,000 902,913 20,827,913 42,985 644,766 8,1 38 9,305,379 10,001,268 $ r18,033,789 4.03% 1.03% 3.88% 2.37% 3.55% (l) The Motorola commication equipment is still being built m of September 30, 2016 Total Outstanding Debt- Govemmental Funds Proprietary Funds: Revenue Bonds: Utility System knprovement ad Refimding Acquiring plant and Revenue Bonds, Series 2013 plmt expmsion Total Revenue Bonds Plus: Premiums N€t Revenue Bonds Total Outstanding Debt - Proprietary Funds 21,105,000 $ 19,92s,000 2.0%-5.25% $ 20,827,913 The revenue bonds, revenue notes, and special assessment bonds noted above are all secured by pledged revenues. The pledged revenues include special assessments, sales tax, state revenue sharing, transportation gas tax, tourist development tax, impact fees, charges for services, and other special taxes. The revenues are pledged through various commitments through 2034. The pledged revenues are the full amounts of the required annual debt payments. Special assessment debt service costs representedg4%o of bb St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 the pledged revenues collected during the year. The percentage for Sales Tax Bonds was 772o/o and Utility Bonds was 16l%u Business-type activities interest expense totaling $872,039 was expensed in the current year. C. Deferred Amount on Refunding In accordance with GASB Statement No. 63 - Financial Reporting of Deferred Outflows of Resources, Defened Inflows of Resources, and Net Position, GASB Statement No. 65 - Item Previously Reporled as Assets and Liabilities, the deferred charge on refunding is presented as deferred outflows of resources on the statement of net position. The following is a schedule of the deferred amount on refunding outstanding at Septemb er 30, 2016: Beginning Balance Additions Reductions Ending Balance Due within One Year Govemmental Funds Proprietary Funds Total 3,279,201 340,3s9 $ (264,e8e) (4r,677) $ (306,666) 3,014,212 298,682 $ 3,312,894 $ 263,408 41,677 $ 305,085$ 3,619,560 $- D. Debt Service Requirements The following schedule shows debt service requirements to maturity for the County's governmental activities obligations : Fiscal Year General Oblisation Bonds Revenue Bonds Revenue Notes 2017 201 8 2019 2020 2021 2022-2026 2027-2031 2032-2035 Total Principal $ 20,000 $ lnterest s38 $ Principal 3,520,000 $ 2,800,000 2,930,000 3,065,000 3,215,000 17,24s,000 15,975,000 Interest 2,525,856 $ 2,3 88,385 2,259,907 2,727,874 1,981,267 7,444,671 3,649,182 Principal 4,t60,463 $ 4,985,042 5,t13,659 4,212,470 4,309,989 15,258,984 2,317,163 Interest 97s,60s 872,070 751,209 627,073 522,010 1,187 ,945 99,482 $ 20,000 538 8,210,000 553,805 $ 56,960,000 $ 22,929,941 $ 40,3s7,753 $ s,035,394 67 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Fiscal Year Special Assessment District Bonds Capital Leases Total 2017 201 8 2019 2020 2021 2022-2026 2027-2031 2032-2035 Total Principal $ 360,934 $ 372,005 398,1 50 409,371 42s,671 4,621,917 Interest 28s,097 $ 271,314 2s7,093 241,874 226,207 673,s71 Principal 1,019,823 $ 901,41r 934,151 747,40r 779,s32 3,082,888 2,s36,002 Interest Principal Interest 299,233 $ 9,081,220$ 4,086,329 207,563 9,058,518 3,739,332 188,472 9,37s,960 3,4ss,681 169,356 8,434,242 3,166,177 151,643 8,730,179 2,881,127 496,110 40,208,789 9,802,297 186,128 20,828,165 3,934,792 8,210,000 553,805 $ 6,588,054 $ l,9s5,rs6 $ 10,001,268 $ 1,698,505 $ 113,927,073 $ 31,619,540 The following schedule shows debt service requirements to maturity for the County's business-type activities obligations : Fiscal Year Water and Sewer Revenue Bonds 2017 201 8 2019 2020 2021 2022-2026 2021-2031 2032-2035 Total 5,695,000 7,1 oo,ooo 3,339,250 I ,930,9 r 3 Principal Interest $ 515,000 $ 945,250 600,000 924,650 795,000 900,6s0 895,000 860,900 980,000 825,100 3,345,000 26s,6s0 19.925.000 $9,992,363 E. Bond Covenants Water & Sewer District The Utility System Improvement and Refunding Revenue Bonds, Series 2013 require that monies on hand in the revenue fund be applied on a monthly basis; first to pay operating expenses and next to deposit into the sinking fund one-sixth of the interest and one-twelfth of the principal accruing on the next payment dates. Money must next be deposited into the renewal and replacement fi.rnd equal to one- twelfth of the renewal and replacement requirement. The balance of any money remaining shall be deposited in to the surplus fund and may be used for any lawful purposes of the District. The County has agreed on the above bonds to establish and maintain rates that will provide net revenues in each fiscal year equal to one hundred ten percent 110% of the debt service requirement. The net revenues after payment of the debt service requirement should equal to one hundred percent (100%) of the reserve fund and the renewal and replacement fund requirements during the year St. Lucie County, Florida Notes to tr'inancial Statements (continued) Year Ended September 30,2016 The following table indicates the degree of compliance with the bond resolution covenants in the Water & Sewer Dishict at September 30,2016. Gross revenues available for compliance g 6,057,402 Operating and maintenance expenses (does not include depreciation, amortization, and debt payments) 4,221,753 Amount ofrevenues over direct operating expenses $ 1,835,649 Debt service requirement Percent coverage for the year ended September 30, 2016 $ 1,326,350 138% F. Summary of Defeased Debt Outstanding In prior years, the County defeased certain debt, the proceeds of which were placed in an irrevocable trust to provide for all future debt service payments on the defeased bonds. As such, the trust assets and related liability are not included in the accompanying financial statements. Following is a schedule of defeased debt at September 30,2016: Bond lssue Balance Utility Series 1990 $ 14,345,000 Utility Series 1993 13,030,000 Transportation Revenue Bond Series 2007 10,230,000 Total defeased debt $ 37,605,000 G. Special Assessment Debt The County is acting as the agent for the property owners in several municipal service benefit units located within the County. The County is not liable for the repayment of the debt and is only collecting the assessments and forwarding the collections to the paying agent. As such, the debt related to these bond issues is not reflected in the accompanying financial statements. The amount of the debt outstanding at September 30,2016, is as follows: Description Amount Special Assessment Improvement Bond, Series 20068, $168,000 (Greenacres MSBU) Special Assessment Improvement Bond, Series 2007A, $16,000,000 (Indian fuver Estates MSBU) Special Assessment Improvement Bond, Series 2008A, $150,000 (Lake Drive MSBU) $ 59,558 6,s02,022 74,871 Special Assessment Improvement Bond, Series 20098, $3,130,000 (Sunland Gardens Phase II MSBU) 1,500,280 Total $ 8,136,731 H. Capital Leases 1. The County has entered into a lease agreement as lessee with CitiCapital to construct water conservation equipment through Florida Power and Light. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value ofits future St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 minimum lease payments as of the inception date. The property being leased has a cost of $1,400,000 and a carrying value of $175,000. The future minimum lease obligation and the net present value of these minimum lease payments as of September 30,2076 were as follows: Year Ending September 30, Governmental Activities 2017 Less: amount representing interest Present value of minimum lease payments $ 44,288 (l,304) $ 42,984 2. The County entered into a lease/purchase agreement as lessee with Banc of America Corp. to acquire certain road & bridge heavy equipment in f,rscal year 2015. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments as of the inception date. The property being leased has a cost of $ 1,062,889 and a carrying value of $854,052. The future minimum lease obligation and the net present value of these minimum lease payments as of September 30,2016 were as follows: Year Endins September 30. Governmental Activities 2017 201 8 2019 Total minimum lease payments Less: amount representing interest Present value of minimum lease payments $ 219,865 2r9,865 2r9,86s 6s9,59s (14,827) 644.768 3. The County entered into a lease/purchase agreement as lessee with AT&T to acquire certain intemet communication equipment in fiscal year 2015. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments as of the inception date. The property being leased has a cost of $27,153 and a carrying value of $14,331. The future minimum lease obligation and the net present value of these minimum lease payments as of September 30,2016 were as follows: Year Endine September 30. Governmental Activities 2017 Less: amount representing interest Present value of minimum lease payments $ 8,243 (106) s 8,137 4. The County entered into a lease/purchase agreement as lessee in the amount of $9,305,379,with Banc of America Corp. to construct certain energy savings improvements to County facilities in fiscal year 2015 . As of September 30, 2016, the improvements are still under construction and $3,73 8,43 8 has been recqrded as construction in progress with no amortization recorded as of September 30, 2016. St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 NOTE 11 _ LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS Federal and state laws and regulations require the County to incur various estimated costs of closing landfill sites and to provide for the long-term care and maintenance of the landfill sites for up to 30 years after closure. The amounts amortized are placed in interest bearing accounts in accordance with state regulations. The County utilized the landfill capacity used method to determine the amortization expense and accumulated amortization of these estimated costs. As of the balance sheet date, the estimated capacity used was 60.32% for the existing construction debris (C&D) landfill and 62.260/o for the Class I Phase IIIB site, which began accepting waste in March 2010. All capacity has been used for the Class I Phase I site, Class 1 Phase II site, Class 1 Phase IIIA site, and C&D Processing Facility. The Class I Phase 1, Phase II, and Phase IIIA are permanently closed. The County is required by state and federal laws and regulations to fund the liabilities associated with the estimated costs of closure and long-term care and maintenance of its landfill sites. The County has restricted cash in an amount equal to the liability from restricted assets below. The federal and state regulations also require the County to provide for the estimated long-term care and maintenance costs for the next year at the Class I Phase I, Phase II, and IIIA sites. The remaining estimated costs at the existing landfills, which total $2,985 ,477,willbe recognized in future years as the remaining estimated capacity is filled. The amounts are based on the cost estimates for closure and postclosure care as ofthe balance sheet date. The liabilities included in the balance sheet for these estimated costs at September 30, 2016, are as follows: Liability From Restricted Assets Other Non-Current Liabilities Total Existing landfi 11 sites: C&D closure costs C&D Processing Facility closure costs C&D long-term maintenance Class I Phase IIIB closure costs Class I Phase IIIB long-term maintenance Total existing landfill sites Previous landfi ll sites: Phase I long-term maintenance Phase II long-term maintenance Phase IIIA long-term maintenance $ 1,56s,738 2,88s 1,736,330 3,304,9s3 s (22,s67) 220,407 50,609 1,224,260 1,472,709 6,233,529 4,410,749 1,909,644 12,613,922 $ 14,086,63 r $ 1,s43,171 2,885 220,407 l,7g6,939 1,224,260 4,777,662 6,233,529 4,470,749 1,909,644 12,613,922 $ 17,391,584 Class Class Class Total previous landfill sites Total liabilities $ 3,304,953 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Federal and state regulations require $1,565,738 to be set aside in the restricted cash and liabilities from restricted assets for C&D closure costs. GAAP requires the liabilities to reflect the capacity used, which is $1,543,171. Therefore, a negative amount of $22,567 is presented in the other non-current liability column. The County currently expects to close the existing C&D site in 2058 and the existing Class 1 Phase IIIB site in 2021. Acnnl costs may be higher due to inflation, changes in technology, or changes in regulations. The County has established liabilities for the estimated postclosure care and maintenance on the closed landfill sites. The estimated costs for the postclosure care and maintenance of these sites are reflected as landfill closure liabilities in the accompanying balance sheet. NOTE 12 _DEFINED BENEFIT PENSION PLANS Florida Retirement System: General Information - All of the County's employees participate in the Florida Retirement System (FRS). As provided by Chapters l2l and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan ("Pension Plan") and the Retiree Health Insurance Subsidy ("HIS Plan"). Under Section 12I.4501, Florida Statutes, the FRS also provides a defined contribution plan ("Investment Plan") alternative to the FRS Pension Plan, which is administered by the State Board of Administration ("SBA"). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county govemment, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of- living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 605, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida32315-9000, or from the Web site: The County's pension expense totaled $16,394,711 for the fiscal year ended September 30,2016. Pension Plan Plan Description - The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program ("DROP") for eligible employees. Benefits Provided - Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class 72 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to l.60/o of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited servic e or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1 .6% of their final ayerage compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (swom law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0o/o of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers' class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% (3 .33% for judges and justices) of their final average compensation based on the five highest years of salary for each year of credited service. For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Offrcers' class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary. As provided in Section I2l .l0l , Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 20 1 1, and all service credit was accrued before July 1 , 201 I , the annual cost-of- living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employrnent with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. The net pension liability does not include amounts for DROP participants as these members are considered retired and are not accruing additional pension benefits. Contributions - Effective July 1, 2071, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 rates established by the Florida Legislature. These rates are updated as ofJuly 1 ofeach year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1,2016 through September 30,2076, respectively, were as follows: Regular -7.260/o and 7.52%; Special Risk Administrative Support - 32.95% ard28.06%o; Special Risk - 22.04% and22.57oh; Senior Management Service - 21.43% and2l.7lo/o; Elected Officers' - 42.27% and 42.47o/o; and DROP participants - 12.88% and 12.99o/o. These employer contribution rates include 1.66o/o and 1.66% HIS Plan subsidy for the periods October 1,2015 through June 30,2016 and from July 1,2016 through September 30, 2016, respectively. The County's contributions, including employee contributions, to the Pension Plan totaled $8,001,879 for the fiscal year ended September 30,2016. Pension Liabilities. Pension Expense. and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At September 30,2016, the County reported a liability of $8 i,865,847 for its proportionate share of the Pension Plan's net pension liability. The net pension liability was measured as of June 30,2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July I , 2016. The County's proportionate share of the net pension liability was based on the County's 2015-16 fiscal year contributions relative to the 2015-16 fiscal year contributions of all participating members. At June 30,2016, the County's proportionate share was 0.324220168 percent, which was an increase of 9.38 percent from its proportionate share measured as of June 30,2015. For the fiscal year ended September 30,2016, the County recognized pension expense of $13,620,307. In addition the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Differences between expected and actual experience Change of assumptions Net difference between projected and actual eamings on Pension Plan investments Changes in proportion and differences between County Pension Plan contributions and proportionate share of contributions County Pension Plan contributions subsequent to the measurement date Total Deferred Outflows Deferred [nflows ofResources ofResources $ 40,766,sr4 $ (1,303,9s0) The deferred outflows of resources related to the Pension Plan, totaling $2,563,492 resulting from County contributions to the Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30, 2017 . Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the Pension Plan will be recognized in pension expense as follows: $ 6,268,280 $(162,226) 4,952,638 21,161323 s,820,781 2,563,492 (s41,724) 74 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Fiscal Year Ending September 30: Amount $ 5,493,000 5,493,000 13,742,998 9,565, l8 I 1,9s2,798 Thereafter 652,095 Total $ 36,899,072 Actuarial Assumptions - The total pension liability in the June 30, 2016 acttaial valuation was determined using the following actuarial assumption, applied to all period included in the measurement: 2017 201 8 2019 2020 2021 Inflation Salary increases Investment rate of retum 2.60% 3.25Yo, average, including infl ation 7.600/o, net of pension plan investment expense, including inflation Compound Annual AnnualTarget Arithmetic (Geometric) Standard Allocation (1) Return Return Deviation 0 3.0% 3.0% 1.7%0 4.7yo 4.6% 4.6%7 8.to/o 6.9% l7.2%0 6.4% s.8% 12.0%0 t1.s% 7.8% 30.0%0 6.toA 5.6% tt.t% Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables. The actuarial assumptions used in the July 1,2016, valuation were based on the results of an acfuarial experience study for the period July 1, 2008 through June 30, 2013. The long-term expected rate of return on Pension Plan investments was not based on historical retums, but instead is based on a forward-looking capital market economic model. The allocation policy's description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions and includes an adjustment for the inflation assumption. The target allocation and best estimates of arithmetic and geometric real rates of return for each major asset class are summarizedinthe following table: Asset Class Cash Fixed Income Global Equities Private Equities Strategic Investments Real Estate Total Assumed Inflation - Mean 2.6% 1.9% (l) As outlined in the Pension Plan's investment policy 75 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Discount Rate - The discount rate used to measure the total pension liability was I .60/o. The Pension Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculation the total pension liability is equal to the long-term expected rate of retum. Rate - The following represents the County's proportionate share of the net pension liability calculated using the discount rate of 7 .60/o, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.6%) or one percentage point higher (8.6%) than the current rate: County's proportionate share of the net pension liability Current 1oZ Decrease Discount Rate 1%o Increase (6.6%) (7.6%) (8.6%) $ 150,720,567 $ 81,865,847 $ 24,553,386 Pension Plan Fiduciary Net Position - Detailed information regarding the Pension Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. Payables to the Pension Plan - At Septemb er 30,2016, the County reported a payable in the amount of $531,670 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30,2016. HIS Plan Plan Description - The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided - For the fiscal year ended September 30,2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions - The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30,2016, the HIS contribution for the period October I,2015 throughJune 30,2016ardfromJuly I,2016 through September 30,2016was7.66oh a;ad I .66%o, respectively. The County contribute d 100% of its statutorily required contributions for the current and preceding three years. HIS Plan contribution are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled. The County's contributions to the HIS PIan totaled $1,376,328 for the fiscal year ended September 30, 20t6. Pension Liabilities. Pension Expense. and Deferred Outflows of Resources and Deferred lnflows of Resources Related to Pensions - At September 30, 2016, the County reported a liability of $31 ,225 ,637 for its proportionate share of the HIS Plan's net pension liability. The net pension liability was measured as of June 30,2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 7,2016. The County's proportionate share of the net pension liability was based on the County's 2015-16 fiscal year contributions relative to the 2015-16 fiscal year contributions of all participating members. At June 30,2016, the County's proportionate share was 0.267925759 percent, which was an increase of 2.32 percent from its proportionate share measured as of June 30,2015. For the fiscal year ended September 30,2016, the County recognized pension expense of $2,714,404.In addition the County reported deferred outflows of resources and deferred in flows of resources related to pensions from the following sources: Description Differences between expected and actual experience Change of assumptions Net difference between projected and actual eamings on Pension Plan investments Changes in proportion and differences between County Pension Plan contributions and proportionate share ofcontributions County Pension Plan contributions subsequent to the measurement date Total Deferred Outflows Deferred Inflows ofResources ofResources (r14,829) $ 6,3s9,267 $ (18s,9s0) The deferred outflows of resources related to the HIS Plan, totaling $351,989 resulting from County contributions to the HIS Plan subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the fiscal year ended September 30,2017 . Other amounts reported as deferred outflows of resources and deferred inflows of resources related to the HIS Plan will be recognized in pension expense as follows: $ (7t,t2t) 4,900,096 15,788 r,091,394 3s 1,989 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Fiscal Year Ending September 30: Amount 2017 $ 1,047,49s2018 1,047,49s2019 1,044,4892020 1,043,046202t 89s,878Thereafter 7 42,925Total $ 5,821,328 Actuarial Assumptions - The total pension liability in the July 1,2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% Salary increases 3.25%o, average, including inflation Municipal bond rate 2.85% Mortality rates were based on the Generational RP-2000 with Projection Scale BB tables. The acfuarial assumptions used in the July 1,2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008 through June 30, 2013. Discount Rate - The discount rate used to measure the total pension liability was 2.85%o.In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond lndex was adopted as the applicable municipal bond index. Rate - The following represents the County's proportionate share of the net pension liability calculated using the discount rate of 2.85o/o, as well as what the County's proportionate share of the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (1.85%) or one percentage point higher (3.85%) than the current rate: lolo Decrease ,,r"tJlrit"" loz Increase(1.85%) (2.8s%) (3.8s%) County's proportionate share of the net pension liability $ 35,822,900 $ 31,225,637 $ 27,410,160 HIS Pension Plan Fiduciary Net Position - Detailed information regarding the HIS Plan's fiduciary net position is available in the separately issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. 78 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Payables to the HIS Pension Plan - At September 30, 2076, the County reported a payable in the amount of $ I 10,455 for outstanding contributions to the HIS Plan required for the fiscal year ended September 30,2016. Investment Plan The SBA administers the def,rned contribution plan officially titled the FRS Investment Plan. The lnvestment Plan is reported in the SBA's annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided by Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the lnvestment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04 percent of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2015-16 fiscal year, as established by Section I21.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class 6.300/o, Special Risk Administrative Support class 7.95o/o, Special Risk class 14.00oA, Senior Management Service class 7 .67Y, and County Elected Officers class 1 1.34%. For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally eamed under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The County's contributions, including employee contributions, to the lnvestment Plan totaled $4,398,866 for the fiscal year ended September 30,2016. The County's Investment Plan pension expense totaled $3,621,808 for the fiscal year ended September 30,2016, which is included in the pension plan expense. Payable to the Investment Plan - At September 30, 2016,the County reported a payable in the amount of $302,028 for outstanding contributions to the Investment Plan required for the fiscal year ended September 30,2016. NOTE 13 - OPERATING LEASES A. Operating Leases - Governmental Activities The County has entered into various operating leases both as lessor and lessee. Lease revenues totaled $1,250,341 and lease expenditures totaled $2,088,658 for the current fiscal year. The following is a schedule, by year, of the fufure minimum lease receipts and payrnents of the various non-cancelable operating leases in which the County is involved: Year Ending September 30,Receipts Payments 2017 2018 2019 2020 2021 2022 -2026 2027 -2031 2032 - 2036 2031 -204t 2042 - 2046 2047 -2051 2052 - 2056 20s6 - 2061 2062 - 2066 2067 -2071 Total $ s67,143 $ s6s,793 560,993 53 8,033 438,747 1,899,987 1,734,793 1,6s8,864 t,6s7,002 t,657,002 t,611,243 1,523,206 510,735 647,146 355,403 )41 o1') I 59,8 14 153,066 464,275 t5,375 15,375 t2,975 12,07s 7,575 4,500 1 qoo 2,400 900 $ 14,923,s41 $ 2,098,7s1 Most leases provide for future increases based upon the consumer price index. Those increases are not reflected in the computation of future lease receipts. The property being leased included in the Statement of Net Position has a cost of $6,248,91 6 and a carrying value $2,366,107 . For fiscal year 2016,total depreciation for depreciable property being leased is $148,519. 80 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 B. Operating Leases - Business-type Activities 1. The County is obligated under an airport land lease for the Golf Course Fund. The lease does not give rise to property rights or lease obligations. Total costs for such lease was $82,500 for fiscal year 2016. The following is a schedule by year of the future minimum lease payments of the airport land lease in which the County is involved: Year Ending September 30, Payments 2017 82,s00 2018 82,500 20t9 82,s00 2020 82,500 Total $ 330,000 2. The County is obligated under various operating leases for the proprietary funds. The leases do not give rise to property rights or lease obligations. Total costs for such leases were $72,906 for fiscal year 2016. The following is a schedule by year of the future minimum lease payments of the operating leases in which the County is involved: Year Ending September 30, 2017 201 8 2019 Total Gotf Carts OffifC XSgtp-941 66,720 66,720 180,480 $ 313,920 $ 36,488 17,283 t5,645 3,s60 NOTE 14 _ CONDUIT DEBT From time to time, the County has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The County has also participated with other counties in the issuance of Housing Authority Bonds to provide down payment and other financial assistance to low and moderate income individuals and families. The bonds are secured by the property financed and are payable solely from payments received on the underlying debt. Upon repayment of the bonds, ownership of the required facilities transfers to the private-sector entity, or individuals, served by the bond issuance. Neither the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanyrng financial statements. As of September 30, 2016 there were two Industrial Revenue Bonds Series outstanding. The aggregate outstanding principal amount for these series as of September 30,2016, was $320,995,000. The St. Lucie County Housing Finance Authority has participated with other authorities on four Housing Finance Authority bonds. The aggregate outstanding principal amount for these series as of September 30, 2016, was $32,089,7 I 2. 81 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 The Reserve Community Development District outstanding conduit debt totaled $2,345,000. The Reserve Community Development District II outstanding conduit debt was $2,025,000. NOTE 15 _ F'UND BALANCES A. Restricted Fund Balances for Other Capital Projects The following nonmajor governmental funds have restricted fund balances in the restricted fund balances for other capital projects category as of September 30, 2016: Restricted Fund Balances for Other Capital Projects County Capital Fund County Capital State Revenue Share Bond Fund County Capital Transportation Bond Fund Jail Security Upgrade Fund Capital Improvement Revenue Bonds 2015 Fund Energy Efficiency FPL 2015 Fund Sports Complex Improvements Fund MSBU Intemal Financed Projects Fund MSBU External Financed Projects Fund Total Nonmajor Govemmental Funds Restricted Fund Balances for Other Purposes Grants and Donation Fund Library Special Fund Drug Abuse Fund Plan Maintenance RAD Fund Tourist Development lst, 2nd, 3rd & 5th Cent Fund SLC Housing Finance Authority Fund Bluefield Ranch Improvements Fund Florida Housing Grant Fund Sports Complex Fund SLC Sustainability District Fund Total Nonmajor Govemmental Funds 6,457,151 2,850,642 4,693,447 1,893,942 6,720,s77 5,551,944 419,348 605,262 806,548 $ 29,998,861 B. Restricted Fund Balances for Other Purposes The following nonmajor governmental funds have restricted fund balances in the restricted fund balances for other purposes category as of September 30, 2016: $ 266,805 205 120,598 29,736 2,093,709 81,589 135,999 8,548 t,091,101 4,556 $ 3,833,451 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 C. Committed Fund Balances for Other Purposes The following nonmajor governmental funds have committed fund balances in the committed fund balances for other purposes category as of September 30,2016: Law Enforcement MSTU Fund Impact Fee Collections Fund Law Enforcement Fund SLC Economic Development Fund Supervisor of Elections Total Nonmajor Govemmental Funds $ 1,383,564 NOTE 16 - FrrND EQUITY DEFTCTT The Golf Course Fund has a deficit net position balance of $4,954,571 at September 30,2016. NOTE 17 _ RISK MANAGEMENT General Liability, Property and Worker's Compensation The County is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors or omissions, injuries to employees, and nafural disasters. The Board and other Constitutional Officers (other than the Sheriffl comprising the primary govemment, participate in a public entity risk pool - Treasure Coast Risk Management Program (TRICO) for the purpose of obtaining various insurance coverage other than health and life insurance. Other members of the pool consist of Martin County, Florida, City of Port St. Lucie, Florida and City of Stuart, Florida. The pool was created by an interlocal agreement under the provisions of Section 1 63.01 , Florida Statutes. The goveming Board of Directors of the pool, which is comprised of representatives of each of the members, has the authority to contract for claims servicing and risk management and loss prevention services. The Board and other Constitutional Officers (other than the Sheriff) pay their share of contributions into the pool based on the value of covered property, prior claims experience, and allocated expenses. Required contributions are considered expenditures when the liability is incurred. Members of the pool are responsible for deficiencies arising from specific claims if claims are in excess of reinsurance limits. The County has no other costs, other than deductible amounts, in connection with the risk pool. TRICO issues a publicly available financial report that includes financial statements and required supplementary information for the program. That report may be obtained by writing to the Employers Mutual Inc., 700 Central Parkway, Stuart, Florida 34994. The County is self insured for group health insurance covering employees and their eligible dependents. As required by Section 1 12.08 1 , Florida Statutes, retirees and their eligible dependents are provided the same health care coverage as is offered to active employees; however, the retirees are responsible for payment of the premiums. Medical claims are paid from premiums contributed by employees, retirees, and the County. Premiums and contributions are determined by projected claims based on historical and actuarial experience. The self insurance plan assumes all risk for claims up to $135,000 per individual, per year, and has purchased a reinsurance policy to cover claims in excess of this amount. $ I,176,309 tt2,tt4 81,733 13,373 35 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 There were eight claims in excess of the limit for fiscal year 2016, nine claims in excess of the limit for fiscal year 2015, and five claims in fiscal year 2014. The IBNR (incurred but not reported) claims liability of $659,23 8, reported at September 30, 20 16, is based on the requirements of generally accepted governmental accounting standards, which require that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements, and the amount of the loss can be reasonably estimated. Estimates for claims incurred but not reported are actuarially determined and recorded and are generally payable within the next year. Nonincremental claims and adjustment expenses have been included as part of the claims liability. Changes in Fiscal Beginning Estimates and Claim Ending Year Balance Claims Incurred Payments Balance 2013-2014 $ 1,000,000$ 10,107,100$ 10,117,100$ 990,000 2014-201s $ 990,000$ 10,696,964 $ 10,820,964$ 866,0002015-2016$866,000$10,530,228$10,736,990$6s9,238 The Sheriffjoined with other Sheriffs in the State to form the Florida Sheriff Self Insurance Fund, a public entity risk pool, under the provision of state statutes. The Sheriff pays its share of contributions into the pool based on the value of the property covered, prior claims experience and allocation of experience. These contributions are considered expenditures when the liability is incurred. The Sheriff has no other costs other than deductible amounts in connection with the risk pool. The Sheriff also participated in a group health insurance risk pool and a workman's compensation risk pool together with other sheriffs in the state. These plans are administered by the Florida Sheriff s Association Multiple Employer Trust and the Florida Sheriff s Association respectively. An expenditure is recognized for contributions made by the Sheriff into the pools based on historical claims information. The Sheriff also continues to carry commercial insurance for the risk of loss on watercraft and aviation equipment. NOTE 18 _ POST EMPLOYMENT BENEFITS The County has two single employer defined benefit healthcare plans, the County Plan and the St. Lucie Sheriff Plan. The County Plan allows its employees and their beneficiaries to continue obtaining health, dental, and other insurance benefits upon retirement. The County amended its policy effective October 1,2004, for employee retirements after that date, to provide for payment of the monthly single premium for the employee and $ 100 toward the cost of eligible dependent coverage, if covered at the time of retirement, for employees who meet the following eligibility requirements: o Active fulI time employees with 10 years of continuous service with the County covered by the health plan at the time of retirement. o Either 30 years of service under the Florida Retirement System (FRS), or vested under the FRS and St. Lucie County, f,'lorida Notes to Financial Statements (continued) Year Ended September 30,2016 reach normal retirement age or 62 years old. o Monthly premiums will be paid until the retiree becomes MedicareAyledicaid eligible. The $ 100 supplement for dependent coverage will continue until the dependent becomes eligible for coverage under another group plan or becomes Medicare/Medicaid eligible. The County further amended its policy in fiscal year 2074 to limit the above post-employment benefit to employees hired before October 1,2013. The St. Lucie Sheriff Plan provides postemployment health insurance benefits for employees and sworn officers upon retirement and subsidizes a portion of the premiums. Retirees with at least 25 years or more of service under the Sheriff are offered free retiree health coverage until they attain eligibility for Medicare benefits. The provisions of the plan for the St. Lucie Sheriff Office may be amended through negotiations between the St. Lucie Sheriff and its employee bargaining units. The benefits of both the County Plan and the Sheriff Plan conform to Florida Statutes, which are the legal authority for the plan. Both plans have no assets and do not issue separate financial reports. The numbers of plan participants for the County Plan and the St. Lucie Sheriff Plan are as follows: St. Lucie County Plan SheriffPlan Active employees Retirees and spouses Total participants 986 49 s99 6t 1,03s The County and St. Lucie Sheriff annual other postemployment benefit (OPEB) cost for the plan is calculated based on the annual required contribution of the employer, aL amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The annual required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. Neither plan funds its OPEB plan in a trust. The annual OPEB cost for the County and the St. Lucie Sheriff for the current year and the related information are as follows: St. Lucie County Plan Sheiff Plan Required contribution rates: Employer Pay-as-you-go Pay-as-you-go Active plan members N/A N/A Annual required contribution S 2,254,994 S 2,950,243 Interest on net OPEB obligation 758,749 638,138 Adjustment to annual required contribution (728,914) (725,157) Annual OPEB cost 2,284,829 2,863,224 Employer contributions (825,526) (929,006) Increase in net OPEB obligation 1,459,303 1,934,218 Net OPEB obligation at beginning of year 18,968,731 15,953,455 Net OPEB obligation at end of year $ 20,428,034 $ 17,887,673 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 The annual OPEB cost, the percentage of annual OPEB cost contributed and the net OPEB obligation for 2014,2015, and2016 for each of the plans were as follows: Fiscal Year Ending Annual Percentage OPEB Cost Contributed Net OPEB Oblisation County Plan: September 30,2014 September 30, 2015 September 30,2016 St. Lucie Sheriff Plan: September 30,2014 September 30,2075 September 30,2016 $ $ $ $ $ $ 2,522,545 2,198,626 2,284,829 2,941,936 3,096,283 2,863,224 20.8r% 32.1r% 36.13% 32.04% 37.76% 32.450h 17,475,939 18,968,731 20,428,034 14,026,327 15,9s3,45s 17,887,673 Funded Stafus and Funding Progress The funding status of the County Plan as of October 1,2014 was as follows: Actuarial accrued liability Actuarial value ofplan assets Unfunded actuarial accrued liability Funded ratio Covered papoll Unfunded actuarial accrued liability as a percentage of covered payoll $ 24,165,595 $ $ 24,165,595 0% $ 42,104,035 s7.40% The funding status of the St. Lucie Sheriff Plan as of July 1,2015 was as follows: 3t,780,171 31,780,171 0% $ 34,393,153 92.40% Actuarial valuations involve estimates of the value of reported amounts and assumptions about the possibility of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the fufure. The required schedule of funding progress presented as required supplementary information (page 90) is designed to provide multi-year trend information to show whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial liability for benefits. However, neither plan has contributed assets to its plan at this time. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, present multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing in time relative to the actuarial accrued liability. Actuarial accrued liability Actuarial value of plan assets Unfu nded actuarial accrued liability Funded ratio Covered payroll Unfunded actuarial accrued liability as a percentage of covered palroll $ $ $ 86 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 Actuarial Methods and Assumptions Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattem of sharing benefit costs between the County and the plan members to that point. Actuarial calculations reflect a long-term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows: St. Lucie County Plan Sheriff Plan Actuarial valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of refurn * Projected salary increases * Payoll growth assumptions Health inflation rate - initial Ultimate trend rate * Includes inflation at 10fit20t4 7 fit20t5 Entry age Entry age Level percent Level percent ofpay, open ofpay, closed 30 years 22years Unfunded Unfunded 4% 4% 3.7% -7.8% 4% -7.8% 3% 4% 8% 7% 4.s% 4.7s% 3% 3% NOTE 19 _ COMMITMENTS AND CONTINGENCIES A. Litigation Various suits and claims arising in the ordinary course of County operations are pending. The County is aparty to litigation under which in the opinion of the County Attorney the potential amount of the County's liability will not be material to the financial statements. Accordingly, no provision has been made in the financial statements for these contingencies. B. Construction Contracts At September 30,2016, the County has various contracts for engineering and construction projects in process totaling $ 18,837,43 I for which goods and services have not been received. Governmental Funds: General Fund S 17,270 Transportation Trust Fund 468,688 Impact Fee Fund 6,852,501 Other govemmental funds 11,078,625 Total govemmental funds $ 18,417,084 Proprietarv Funds: Water & Sewer District Fund $ 420,341 Total proprietary tund S 420,347 St. Lucie County, Florida Notes to Financial Statements (continued) Year Ended September 30,2016 C. Grants Amounts received, or receivable, from grantor agencies are subject to audit and adjustment by grantor agencies. If any expenditure is disallowed as a result of these audits the claims for reimbursement to the grantor agency would become a liability of the County. In the opinion of management, any such adjustrnent would not be significant. NOTE 20 - SUBSEQUENT EVENTS 1. On December 22,2016, the County issued a Taxable Capital Improvement Revenue Refunding Note, Series 20168 in the amount of $4,832,000. The proceeds were used to pay off the County's Tourist Development Tax Improvement and Refunding Revenue Bond, Series 2011A and Tourist Development Tax Refunding Revenue Bond, Taxable Series 2011B. The loan has a final maturity of November 1,2023. REQUIRED SUPPLEMENTAL INFORMATION 89 Actuarial Valuation Date ST. LUCIE COUNTY, FLORIDA OTHER POSTEMPLOYMENT BENEFITS Schedule of Funding Progress For the Fiscal Year Ended September 30,2016 (Ln Thousands) Actuarial Actuarial Unfirnded Value of Accrued AAL Funded Assets Liability (AAL) (UAAL) Ratio(a) (b)(b-a) (a/b) UAAL as a Percentage Covered ofCovered Payroll Payroll(c) ((b-a)/c) County Plan: October l,20lO October 1,2012 October 1,2014 St. Lucie Sheriff Plan: July 1,2011 July 1,2013 July l, 2015 $ $ $ $ $ $ $ $ $ $ $ $ 22,061 23,835 24,166 27,367 32,337 31,780 s 22,061 $ 23,835 $ 24,166 $ 27,367 s 32,337 $ 31,780 0% $ 40,227 0% $ 38,910 0% $ 42,104 0% $ 31,378 0% $ 31,808 0% $ 34,393 s4.84% 6t.26% s7A0% 87.22% t01.66% 92.40% ST. LUCIE COT]NTY, FLORIDA SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY Florida Retirement System Last 10 Fiscal Years* (1) 2014 20t5 2016 County's proportion of the net pension liability County's proportionate share of the net pension County's covered-employee payroll County's proportionate share of the net pension liability liabilify as a percentage 0.286699638% $ 17,492,894 $ 76,135,364 22.98 % 96.09 % 0.296434600% 38,288,s04 $ 77,028,679 $ 49.71% 92.00 % 0.324220168% 81,865,847 82,847,038 49.7t % 92.00 % $ $ * The amounts presented for each fiscal year were determined as of June 30. (l) - GASB 68 requires information for 10 years. However, FY 2007 through FY 2013 information is not available. (2) - Information came from FRS Pension Plan and Other State Administered Systems CAFR for each respected year. SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY Health Insurance Subsidy Program Last 10 Fiscal Years*(l) 2014 20ts of its covered-employee payroll Plan fiduciary net position as a percentage ofthe total pension liability (2) County's proportion of the net pension liability County's proportionate share of the net pension liability County's covered-employee payroll County's proportionate share of the net pension liability as a percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability (2) 2,016 0.256871781% 24,018,699 $ 76,135,364 $ 31.55 % 0.99 % 0.2618s0034% 26,704,585 $ '17,028,679 $ 34.67 % 0.50 % 0.26792s7s9% 31,225,637 82,847,038 37.69 % 0.97 % * The amounts presented for each fiscal year were determined as of June 30. (1) - GASB 68 requires information for 10 years. However, FY 2007 through FY 2013 information is not available. (2) - Information came from FRS Pension Plan and Other State Administered Systems CAFR for each respected year. ST. LUCIE COUNTY, FLORIDA SCHEDULE OF CONTRIBUTIONS Florida Retirement System Last 10 Fiscal Years* (1) 20t4 2015 2016 Contractually required contribution Contributions i relation to the contractually req ired contribution Contribution defi ciency (excess) County's covered-employee payroll Contributions as a percentage of covered-employee payroll $ 8,493,239 $ 8,493,239 $- $ 9,358,753 $ 10,063,078 $ 9,358,753 $ 10,063,078 $ -$ * The amounts presented for each fiscal year were determined as of September 30. (l) - GASB 68 requires information for 10 years. However, FY 2007 through FY 2013 information is not available. 74,229,560 11.44% SCHEDULE OF CONTRIBUTIONS Health Insurance Subsidy Program Last 10 Fiscal Years* (1) 20r4 903,402 903.402 80,243,983 $ 83,487,575 rt.66% 12.06% Contractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) County's covered-employee payroll Contributions as a percentage of covered-employee payroll * The amounts presented for each fiscal year were determined as of September 30. (1) - GASB 68 requires information for 10 years. However, FY 2007 through FY 2013 information is not available. $ $ $ S 20ts 1,093,673 1,093,673 20t6 $ 1,376,328 $ 1,376,328 $- $ 83,487,515 1.6501n 74,229,560 $ 80,243,983 _ 136% NONMAJOR GOVERNMENTAL FUNDS ST. LUCIE COUNTY, FLORIDA Nonmaior Governmental Fund Descriptions Special Revenue Funds Special Revenue Funds are used to accountfor specitic tevenue soarces that are legaUy restricted to expenditures for specijic purposes. Unincorporated Services Fund - The fund is used to account for Ad Valorem taxes, fees and fines that are restricted to the Unincorporated District for economic development expenditures. Law Enforcement MSTU Fund - The fund is used to account for Ad Valorem taxes that are transferred to the Fine & Forfeiture Fund for the Unincorporated Area Road patrol expenditures. Grants and Donations Fund - The fund is used to account for Federal, State, Local and other grant revenue sources. Librarv Special Fund - The fund is used to account for State grants and donations made to the library. Drug Abuse Fund - The fund is used to account for Drug Abuse Court fines. Special Assessment District Fund - The fund is used to account for Ad Valorem taxes that are restricted to Unincorporated District for economic development. Parks MSTU Fund - The fund is used to account for Ad Valorem taxes that are restricted to capital improvements to recreational facilities. SLC Public Transit MSTU Fund - The fund is used to account Ad Valorem taxes that are used for local public transportation expenditures. Port Fund - The fund is used to account for Special Assessments, Federal and State grants used for Port development. Airport Fund - The fund is used to account for Federal and State grants used for expansion and operations of the Airport. Mosquito Control Fund - The fund is used to account for the operations of the Mosquito Control District, which are funded by Ad Valorem taxes. Impact Fee Collections Fund - The fund is used to account for the administration of impact fee collections. Plan Maintenance RAD Fund - The fund is used to account other contributions and State grants for the radiological planning and exercises. Tourism Development 1$-2nd, 3!d & 51h Cent Fund - The fund is used to account for Tourism Development taxes which are used for Sports Complex parks and to pay for capital facilities that promote tourism at the St. Lucie County Fairgrounds and the area north of Midway Road. Court Facility Fund - The flrnd is used to account for Court Fees restricted to Judicial maintenance & capital improvements. SLC Housing Finance Authoritv Fund - The fund is used to account for residual funds from loan programs. Environmental Land Acquisitions Fund - The fund is used to account for the purchase of environmentally sensitive land. Court Administrator Fund - The fund is used to account for Court Administration, Mediation through fines and forfeitures, other Circuit Counties Share and Grant funding. Erosion Control Fund - The fund is used to account for Ad Valorem taxes restricted to erosion control operations, maintenance and construction. Housing Assistance SHIP Fund - The fund is used to account for Grant funding for Housing Assistance Programs. Boating Improvement Projects Fund - The fund is used to account for Vessel fees used for boating improvements. Bluefield Ranch Improvements Fund - The fund is used to account for private contributions and Campsite User fees for property management and restoration. Florida Housing Grant Fund - The fund is used to account for Federal, State and other grant funding that provide housing related assistance for eligible County residents. Sports Complex Fund - The fund is used to account for operating revenues and the 2-cent tourism tax revenues to pay for the operation and maintenance of the facility. SLC Sustainabilitlr District Fund - The fi,rnd is used to account for bond proceeds and special assessment revenues for sustainability and renewable energy improvement programs. Law Enforcement Fund - The fund is used to account for the proceeds from the sale of confiscated property through the Sheriff s office. SLC Art in Public Places Fund - The fund is used to account for art work per local ordinance through various capital projects. SLC Economic Development Fund - The fund is used to account for local business taxes and delinquent taxes. Clerk of the Circuit Court Fund - The fund is used to account for Clerk's Court Modemization Trust Fund. Sheriff Fund - The fund is used to account for grant funds and other revenue received for specific ptu?oses. Supervisor of Elections Furd - The fund is used to account for the receipt of grant funds. Debt Service Funds Debt Service Funds are used to accountfor the accumulation of pledgedfands that are legally restricted to pay debts. Impact Fees I & S Fund - The fund is used to account for the accumulation of Special Assessments and Impact Fees pledged to pay the principal, interest, and fiscal charges on the Rock Road Jail security system. Sales Tax Revenue Bonds I&S - The Sales Tax Revenue Bonds I&S Fund accounts for the accumulation of sales tax revenues pledged to pay the principal, interest, and other fiscal charges on the Sales Tax Refunding Revenue Bonds. Countv Capital I & S Fund - The fund is used to account for the accumulation of interfund transfers pledged to pay the principal, interest, and fiscal charges on the Capital Improvement Revenue note. Transportation I & S Fund - The fund is used to account for the accumulation of interfund transfers pledged to pay the principal, interest, and fiscal charges on the Transportation Revenue note. Capital Improvement Revenue Refundins 2014 Fund - The fund is used to account for the State Revenue Sharing revenue and lntergovernmental Radio Communication surcharges pledged to pay the principal, interest and fiscal charges on the Capital Improvement note. Capital Improvement Revenue Bonds Series 2016 Jail Fund - The fund is used to account for the accumulation of interfund transfers pledged to pay the principal, interest, and fiscal charges on the Capital Improvement note. Capital Improvement Revenue Bonds 2015 Fund - The fund is used to account for the accumulation of Tax Collector debt reimbursement revenue pledged to pay the principal, interest, and fiscal charges on the Capital Improvement Revenue bond. Lease Purchase FPL 2015 Fund - The fund is used to account for the accumulation of interfund transfers pledged to pay the principal, interest, and fiscal charges on the purchasing ofcertain energy equipment. Lease Purchase Motorola Fr.rnd - The fund is used to account for the accumulation of interfund transfers pledged to pay the principal, interest, and fiscal charges on the purchasing ofa communication system. Port I & S Fund - The fund is used to account for the accumulation of Ad Valorem taxes pledged to pay the principal, interest, and fiscal charges on the purchasing of land in the Port of Fort Pierce Bond. Capital Projects I & S Fund - The f,rnd is used to account for the accumulation of Interfund Transfers pledged to pay the principal, interest, and fiscal charges on the line of credit for the MSBU's. Sports Complex Fund - The fund is used to account for the accumulation of Sales, Use and Fuel taxes pledged to pay the principal, interest, and fiscal charges on the Improvement of the Thomas J. White Stadium bond. Capital Proiects Funds Capital projects funds are used to accountfor the acquisition and construction of major capital projects other than those financed by proprietary funds. Countv Capital Fund - The fund is used to account for the transpoftation and park capital projects, which are funded by gas tax and franchise fees. Count-v Capital State Revenue Share Bond Fund - The fund is used to account for state revenue sharing monies used for capital improvements. Countv Capital Transportation Bond Fund - The fund is used to account for the transportation capital projects funded by bond proceeds pledged by gas tax revenues. Jail Securitv Uperade Fund - The fund is used to account for the upgrade of security system at the Rock Road Correction Center projects funded by proceeds from the issuance of debt. Capital Improvement Revenue Bonds 2015 Fund - The firnd is used to account for bond proceeds used for the construction of the Tax Collector Building. Energ.v Efficiency FPL 2015 Fund - The fund is used to account for the FPL upgrade of energy efficiency funded by capital lease proceeds. Sports Complex Improvements Fund - The fund is used to account for cash balances from bond proceeds used for sports complex projects. Environmental Land Capital Fund - The fund is used to account for cash balances from bond proceeds used for land acquisitions. 97 MSBU Internal Financed Projects Fund - The fund is used to account for the assessment proceeds from property owners and to pay for capital project related expenditures. MSBU External Financed Projects Fund - The fund is used to account for the assessment proceeds from properly owners and debt proceeds to pay for capital projects and project related expenditures. 98 THIS PAGE INTENTIONALLY LEFT BLANK 99 St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2016 Soecial Revenue Unincorporated Services Lew Enforcement MSTU Grants and Library Donstions Special 2s7,820 $ 6,464 810 30 8,1 7s ASSETS Cash and investments Accounts receivable Assessments receivable lnterest receivable Due from other firnds Due from other governments Inventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Matured interest payable Deposits payable Due to other funds Due to other govemments Unearned revenues - other Total liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenues - special assessments Unavailable revenues - grants Total deferred inflows ofresources FUND BALANCE Nonspendable: Inventories of supplies Prepaid items Restricted: Port development Erosion Control District Parks improvements Court Administrator, mediation Transportation Debt service Environmental land acquisition Public safety Court modemization Mosquito Control District Judicial expenditures Housing assistance program Boating related projects Art in public places Other capital projects Other purposes Commltted to: Street lights, roads, drainage imp. to special district Unincorporated Services Law enforcement Other purposes Total fi:nd balances Total liabilities and fi:nd balances 9,s88,482 $ 221,138 2s,914 63,725 742,s66 967 r , r 43,808 3,334 4,635 24,s32 $ 10,642,792 $ 1,176,309 $ 266,805 $ 6,494 628,640 $ 628,640 760,855 760,85s 6,289 6,289 967 266.805 205 9,252,330 l, l 76,309 l, l 76,309 s 1,176,309 9,253,297 s 10,642,792 266,805 $ 266,805 205s 6,494 Special Revenue Drug Abuse Special Assessment District Parks MSTU SLC Public Transit MSTU Port Airport 3,s80,009 $ 2,2s9,r 15 90,136 127,809 9,s99 6,049 28s l15,13l $ 299 5,1 68 236,006 $ 663 1,547 136 1,92r,594 $ 5,042 27,677 752 2,816,270 $ 7,t16 15,143 874,342 315,128 3s 1,863 $ 120,s98 $ 238,3s2 $ 1,95s,065 $ 3,712,871 $ 3,995,157 $ 2,744,836 -$8,136 $30,856 $ 83,342 737,182 $371,833 $285,512 12,518 8,136 114,198 737,182 374,334 298,030 423,469 315,282 185,728 423,469 315,282 185.728 120,598 230,216 1,840,867 2,5s2,220 3,305,541 2,26r,078 120,598 230,216 1,840,867 2,552,220 3,305,541 2,261,078 $ 120,598 $ 238,3s2 $ 1,95s,065 $ 3,712,871 $ 3,99s,157 $ 2,744,836 Continued St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2016 Special Revenue Mosquito Control Impact Fee Collections PIan Maintenance RAD Tourism Development lst 2nd,3rd & 5th Cent t,941,395 1,000 5,104 21,403 t49,536 ASSETS Cash and investrnents Accounts receivable Assessments receivable Interest receivable Due from other funds Due from other govemments lnventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Matured interest payable Deposits payable Due to other fimds Due to other goverfinents Uneamed revenues - other Total liabilities DEFERRED INFLOWS OF' RESOURCES Unavailable revenues - special assessments Unavailable revenues - grants Total deferred inflows ofresources FTJND BALANCE Nonspendable: Inventories of supplies Prepaid items Restricted: Port development Erosion Control District Parks improvements Court Administrator, mediation Transportation Debt service Environmental land acqui sition Public safety Court modemization Mosquito Control District Judicial expenditures Housing assistaoce program B oating related projects Art in public places Other capital projects Other purposes Committed to: Steet lights, roads, drainage imp. to special district Unincorporated Services Law enforcement Other purposes Total fund balances Total liabilities and firnd balances $ 7,192,926 $ 118,871 $ 2s9,183 $ 6,7s7 $ 52,743 $ 2,118,438 6,428,997 $ 5l 17,433 28,s23 5s8,346 1s9,576 118,511 $ 360 s2,469 $ 274 6,757 $ I 1,943 $ 1 1,064 23,007 24,710 259,1 83 522,876 522,876 t59,576 6,251,291 6,410,867 $ 7,192,926 24,730 29,736 2,093,'.l08 tt2,tt4 112,114 29,736 2,093,708 $ 118,871 $ s2,743 $ 2,118,438 Special Revenue SLC Housing Court Finance Environmental Housing Land Court Erosion Assistance 322,538 $2,025,406 $_ 4s0 836 4,287 Fecility Authority Acquisitions Administrator Control SHIP $ 1,320,126 $ 49,49t 3,369 213 8l,376 $ I 08,639 _ t79 s,816,160 $ 302,683 1s,4s6 688 I 1,039339,413 6s,074 $ t,3'72,986 $ 82,089 S 123,314 $ 2,138,961 $ 6,182,068 $ 368,445 3,600 s -$-$ 3,013 30,67',1 $72,954 $4t,280 95,042 - 167,049 3,600 33,690 72,9s4 208,329 339,t07 6s,074339,107 6s,074 r,369,386 323,374 t'79 2,105,092 5,770,007 s00 8r,589 1,369,386 82,089 323,3'14 2,105,271 5.770,007 95,042 $ 1,372,986 $ 82,089 S 323,374 $ 2,138,961 $ 6,182,068 $ 368,445 '103 Continued St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30,2016 Snecial Revenue ASSETS Cash and investrnents Accounts receivable Assessments receivab Ie lnterest receivable Due from other funds Due from other governments Inventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Matured interest payable Deposits payable Due to other funds Due to other governments Uneamed revenues - other Total liabilities DEFERRED INT'LOWS OF RESOI.]RCES Unavailable revenues - special assessments Unavailable revenues - grants Total deferred inflows ofresources FTJND BAIANCE Nonspendable: Inventories of supplies Prepaid items Restricted: Port development Erosion Control District Parks improvements Coun Administrator, mediation Transportation Debt service Environmental land acquisition Public safety Court modemization Mosquito Control District Judicial expenditures Housing assistance program Boating related projects Art in public places Other capital projects Other purposes Committed to: Street lights, roads, drainage imp. to special districl Unincorporated Sewices Law enforcement Other purposes Total firnd balances Total liabilities and fund balances $ 135,999 $ 76,154 $ 1,203,884 $ 25,012 $ Boating Improvement Projects $ 1,001,743 Bluefield Ranch Improvements s 135,646 Florida Housing Grant $ 294 Sports Complex $ 1,200,414 206 3,2042,6t5 99,036 3s3 45 75,815 s,s00 $ I 5,500 r,323 41,835 r 08,863 3,314 t12,t775,500 _ 25,'771 1,097,894 25,771 8,548r35.999 t,091,707 1,097,894 135,999 $ 1,103,394 $ 135,999 8,548 1,091,'.107 $ 76,rs4 $ 1,203,884 Special Revenue SLC Sustainability SLC Art in Public SLC Economic District Law Enforcement Places Development Clerk of Cour( 4,517 $ 21 5,158 8t,s2t $ 212 72,194 $ 188 12,540 $ 2l 14,654 6s5,19r $ 19,439 1,870,377 299,769 66,821 290,976 l1 27 $ 219,714 $ 81,733 $ 72,582 $ 27,215 $ 674,630 $ 2,527,943 -$-s -$13,842 $42,429 $ 172 23,915 693,748 t3,842 42,60t 71'.1,663 215,158 97,799 97,799215,158 4,556 _ 81,733 - 13,373 1,23t,348 - 481,133 72,582 632,029 81,733 72,s82 t3,373 632,029 1,712,48t4,556 $ 2t9,714 $ 81,733 $ 72,s82 27,2ts $ 674,630 $ 2,s27,943 Continued St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2016 Special Revenue Supervisor of Elections Debt Service Impact Fees I&S Sales Tax Revenue Bonds I&S County Capital I&S ASSETS Cash and investments Accounts receivable Assessments receivable lnterest receivable Due from other funds Due from other govemments lnventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Maflred interest payable Deposits payable Due to other funds Due to other govemments Uneamed revenues - other Total liabilities DEFERRED INFLOWS OF RESOTJRCES Unavailable revenues - special assessments Unavailable revenues - grants Total defened inflows ofresources FUND BAIANCE Nonspendable: Inventories of supp lies Prepaid items Restricted: Port development Erosion Control District Parks improvements Court Administrator, mediation Transportation Debt service Environmental land acquisition Public safety Court modemization Mosquito Control District Judicial expenditures Housing assistance program B oating related proj ects Art in public places Other capital projects Other purposes Committed to: Street lights, roads, drainage imp. to special district Unincorporated Services Law enforcement Other purposes Total fund balances Total liabilities and fi.rnd balances 3s$135,864 $ 35 $ 135,864 3,984,562 10.362 270,057 $ 4,264,981 r,335,333 3,645 $ 1,338,978 -$ I 10,000 25,864 2,330,000 1,200,400 933,354 41,734 135,864 3,s30,400 975,088 270,057 464,524 363,890 35 734,581 363,890 $ 4,264,981 $ r,338,978 106 $ 135,864 Debt Service $ 214,089 $ 1,279,4s6 $ 168,906 $ 4,451 $ - $ I -$-$ 1,030,000 t23,271 -$ 125,000 43,160 -$-$ 1,t53,271 168,160 126,185 746 4,451 - I2t4,089 214,089 126,185 746 4,45r - 1$ 214,089 $ 1,279,4s6 $ 168,906 $ 4,4s1 $ - $ I Continued 107 St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30, 2016 Debt Service Port I&S Capital Projects r&s Sports Complex Debt 6,5t2,0t9 17,t42 1 13,306 ASSETS Cash and investrnents Accounts receivable Assessments receivable lnterest receivable Due from other fimds Due from other governments lnventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Matured interest payable Deposits payable Due to other funds Due to other governments Unearned revenues - other Total liabilities DEFERRI,D INFLOWS OF RESOTJRCES Unavailable revenues - special assessments Unavailable revenues - grants Total deferred inflows ofresources FUND BALANCE Nonspendable: Inventories of supplies Prepaid items Restricted: Port development Erosion Control District Parks improvements Court Administrator, mediation Transportation Debt service Environmental land acquisition Public safety Court modemization Mosquito Control District Judicial expenditures Housing assistance program Boating related projects Art in public places Other capital projects Other purposes Committed to: Street lights, roads, drainage imp. to special district Unincorporated Services Law enforcement Other purposes Total firnd balances Total liabilities and flmd balances $ t92,654 $ 26,465 s 1,649,2s1 $ 6,642,467 166,563 r66,563 I 8,753 l 8,7s3 t92,654 26,465 r,649,25t 6,457,1sr t90,241 499 1,863 5l 26,397 68 t,ss9,792 3,733 t0,7J3 74,993 t92,654 26,465 $ r92,6s4 $ 26,46s t,649,25t 6,457,t51 $ 1,649,2sr $ 6,642,467 Capital Proiects County Capital State Revenue Share Bond County Capital Transportation Jail Security Bond Upgrede Energy Efficiency Sports Complex FPL 2015 Improvements 5,551,944 $9r0,r06 2,369 $ 5,ss1,944 $ 912,4'75 s - s 493,127 493,127 Capital Improvement Revenue Bonds 2015 2,874,816 $ 7,477 5,t62,199 $ 13,615 2,339,838 $ 6,2t4 6,72t,495 S 17,479 $ 2,882,293 $ s,17s,814 $ 2,346,0s2 $ 6,738,974 $ 18,397s 31,651 s 482,36'7 $ 4s2,110 3 l,6s l 482,367 452,tt0 18,397 2,850,642 4,693,447 1,893,942 6,720,577 5,551,944 4t9,348 2,850,642 4,693,447 1,893,942 6,720,577 5,55t,944 4t9,348 $ 2,882,293 $ 5,175,814 $ 6,738,974 $ s,s51,944 $ 9t2,475 Continued St. Lucie County, Florida Combining Balance Sheet Nonmajor Governmental Funds September 30,2016 Canitel Proiects MSBU MSBU Environmental Internal External Land Finance Financed Capital Proiects Proiects Total Nonmajor Governmental Funds ASSETS Cash and investments Accounts receivable Assessments receivable lnterest receivable Due from other funds Due from other govemments Inventories Prepaid items Total assets LIABILITIES Accounts payable and other current liabilities Matured bonds payable Maored interest payable Deposits payable Due to odrer funds Due to other govemrnents Uneamed revenues - other Total liabilities DEFERRED INFLOWS OF RESOI,JRCES Unavailable revenues - special assessments Unavailable revenues - grants Total deferred inflows ofresources FT]ND BALAI\CE Nonspendable: Inventories of supplies Prepaid items Restricted: Port development Erosion Control District Parks improvements Court Adminishator, rnediation Transportation Debt service Environmental land acquisition Public safety Court modernization Mosquito Control District Judicial expenditures Housing assistance program Boating related projects Art in public places Other capital projects Other purposes Committed to: Street lights, roads, drainage imp. to special district Unincorporated Services Law enforcement Other purposes Total fund balances Total liabilities and fund balances $ 369,433 $ 605,927 $ r52 S $ 367,241 $ |,238 604,074 $ l,605 248 86,086,750 7 61,236 2l 5,1 58 204,964 258,280 4,282,819 159,576 1 59,576 271,703 3,305,541 5,770,007 1,840,867 2,105,092 4,8 r3,298 3,042,256 692,655 1,231,348 632,029 6,251,291 1,369,386 95,042 I,097 ,894 72,582 29,998,86 1 3,833,451 230,216 9,2s2,330 48 1,1 33 r,383,564 77,930,122 $ 92,240,486 799,882 2,031 4,61t 24 271,703 $ 92,240,486 s 4,377,816 4,s28,3s4 1,434,429 12,518 709,248 89,84 1 188,226 tr,340,492 215,158 2,754,714 2,969,872 r52 665 369,281 60s,262 806,548 369,28t 605,262 $ 369,433 S 60s,927 806,548 $ 806,548 THIS PAGE INTENTIONALLY LEF'T BLANK St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended September 30,2016 Soecial Revenue Unincorporated LawEnforcement Services MSTU Grants and Donations 109,776 204 REVENUES Taxes: Property Tourist Motor fuel Local business Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeitures Investrnent income Contributions from property owners Miscellaneous Total revenues EXPENDITURES Crlrrent: General govemrnent Public safety Physical environment Jpansportation Economic environment Human services Culture and recreation Court-related Capital outlay Debt service: Principal retirement Interest Other Total expendihues Excess (deficiency) of revenues over (under) expenditures oTHER FTNATICTNG SOURCES (USES) Transfers in Transfers out Lease purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balance - ending s,424,940 S '77,384 24,5t0 r90,440 124,325 i99,583 1 19,343 3,514,322 s 2l ,895 20,847 74,080 105,068 3,683 196,3 l l 6,3 s6,836 3,557,064 1 82,83 1 109,980 i,665,783 684, I 96 l,537,758 41,080 505,8 1 7 3 1,661 867,833 2,051 74,080 1,233 96,438 13,33 7 s,334,).28 2,051 t,022,708 3,555,013 107,518 75,313 109,775 205 (l rs,000)(2s'7;708)(3,419,718) (2s7,708) (3,419,718) (11s,000) 765,000 135,295 8,488,297 1,041,014 (7,482) 274,287 $ 9,2s3,297 $ 1, r 76,309 $ 266,805 $ 205 Special Revenue Drug Abuse 69,163 1,164 Special Assessment District Parks MSTU SLC Public Transit MSTU -$ - 24s,26t 3,072 -$3,636,7 t5 $ 9,924 28,198 1,990,05s $ 2,479,032 53,41l 32,814 Port Airport -$ 752 rss,642 1,402,237 27,r2s 28,233 962,307 733,649 20,82; - 662,925 400,264 - 440,544 43,t27 t9,963- 3,750- 283,t77 - 28,223 1t4,'/8870,327 248,333 3,958,014 4,ss9,062 7ss,095 975,559 t,892 210,626 2,0t9,827 s33,779 895,000 157,703 4,670,9s2 3,384 1,892 210,626 3,606,309 4,674,336 1,613,989 t,695,956 68.435 37,707 3sl,70s (115,274\ (858,894) (720,397) (40,000) (5,s1s) (103,707) (s6,72s) 42,013 936,031 28,435 92,163 32,192 198,024 24'.7,998 t.s92,869 (17 t,999) 2,724,219 4,122,422 2,045,444 (816,881) 2t5,634 $ 120,598 $ 230.2t6 $ 1,840,867 $ 2,552,220 $ 1,305,541 $ 2,261,078 Continued St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended September 30,2016 Special Revenue Mosquito Control Impact Fee Collections Plan Maintenance RAD Tourism Development lst 2nd,3rd & 5th Cent 2,432,468 19,594 17,287 2,469,349 REVENUES Taxes: Property Tourist Motor fuel Local business Licenses and permits SpeciaI assessments Intergovernmental Charges for services Fines and forfeitures Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITURI,S Current: General govemment Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court-related Capital outlay Debt service: Principal retirement Interest Other Total expendirures Excess (defi ciency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Lease purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total other financing sources (uses) Net change in fiurd balances Fund balances - beginniag Change in inventories ofsupplies Fund balance - ending 3,3 14,591 53,1 5 8 1,145,386 (35,1 18) 427,080 771,s80 1,208 t,697,769 s 3,719,67 | 523,15 t 89,6s3 127,502 4,459,977 I,635 16,405 1 8,040 1,1 l6 42'.1,1'12 428,288 223,779 2,600,38 l 490,431 s3,15 8 427,080 61,868 709,712 (108,504) (108,s04) 1,036,882 s,s37,3'77 ( 1 63,392) s 6,410,867 (1,128,985) (3s, r l 8) t47,232 1,208 28,528 (1,128,985 ) s68,784 t,524,924 $ 2,093,708 Special Revenue Court Finance Land Facility Authority Acquisitions SLC Housing -$ 625,983 16,392 891 Environmental 3,418 -$ - 5,625 - 440,2'18 - 169,905 20,937 23,9t3 1,142,268 Housing Assistance SHIP 432,677 24,39t s02,753 Court Administrator Erosion Control -$-$1,450,727 $ 403,9t9 67,437 64n7; il,l3i 11,?11 $6,74; ------Bd;;. ----+i# _ |,428 51,095 1,109,266 261,199 34,000 24,240 42.868 r,898 53 101,108 53 1,166,181 t,421,560 s02,753 541,267 16,796 52,306 (529,436) sO2,027 (34,454) (s rs,34r) 439,329 (74,314)(24t,3s4) (5 1s,341) 1,143,460 365,015 (24t,354\ 25,926 16,796 65,291 52,306 27t,068 (164,42r) 2,269,692 260,673 s,s09,334 (34,4s4) 129,496 $ 1,369,386 $ 82,089 $ 323,374 g 2,t0s,271 $ 5,770,007 $ 9s,042 Continued St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmaj or Governmental Funds For the Year Ended September 30,2016 Special Revenue Boating Bluefield Improvement Ranch Projects Improvements Florida Ilousing Grant 263,826 736,551 t2,744 3t9,299 1,332,420 REVENUES Taxes: Property Tourist Motor fuel Local business Licenses aad permits Special assessments Intergovernmental Charges for services Fines and forfeitures Investnent income Contributions from property owners Miscellaneous Total revenues EXPENDITURES Current: General govemment Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court-related Capital ouflay Debt service: Principal retirement Interest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out kase purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fr:nd balances - begiming Change in inventories of supplies Fund balance - ending 110,390 t,'133 546,998 99,036 I t,354 21t I,512 l0 546,802 196 40,107 20,745 735,467 1,090 2,r76,730 60,852 49,538 r,733 736,557 2,176,730 (189,s59) (844,3101 t,077,387 49,538 1,048,356 1,733 134,266 ( 1 89,s59) 1 98,1 07 1,077,387 231,077 8s8,630 $ i,097,894 $ 13s,999 $ 8,s48 $ 1,091,707 116 Special Revenue SLC Sustainability SLC Art in Public SLC Economic District Law Enforcement Places Development Clerk ofCourt -$ 4,404 3,709 75,000 478 -$ s7,503 56,1 98 6,t6s 4,825,057 630,390 -$-$-s - 2,t22,3s0 682,009 t,372,7r1 32s,033 201 *o: r: 2,s22_ 32, l 088,314 7s,478 806 s7,583 1,041,672 3,50r,226 176,800 2,104 s,316 s,s64 t89,784 (61) 185,468 18s,407 3,937 619 r,042,s6s 13,757 (181,470) '75,478 806 1,38s (14,6s0) (1,9s4,221) s6,198 t,0s6,322 s,455,447 3,139,97 t (1,10s,379) - 2,034,592 75,478 6,255 806 71,776 r,38s I 1,988 646,679 1,632,1 10 (14,650) 80,371 $ 4,556 $ 81,733 $ 72,582 $ 13,373 $ 632,029 $ 1,712,48t Contlnued 't17 St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended September 30,2016 Special Revenue Supervisor of Elections Debt Service Impact Fees I&S Sales Tax Revenue Bonds I&S County Capital r&s REVENUES Taxes: Property Tourist Motor fuel Local business Licenses and permits Special assessments Intergovernmental Charges for services Fines and forfeitures Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES Current: General govemment Public safety Physical environment Transportation Economic environment Human sewices Culture and recreation Court-related Capital outlay Debt service: Principal retirement Interest Other Total expenditures Excess (deficiency) of revenues over (ulder) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out Lease purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balance - ending 38,t2'.1 3,953,807 36,611 8,864 38,r27 42.71,0 3,990,418 8,864 1.071 l 10,000 51,'728 2,330,000 2,400,800 18,325 4,7 50,196 t,066,235 98,284 42,710 r,t64,sl9 (4,583) (161,728) (1s9,778) (1,15s,6s5) 4,s83 ts2,002 865,34 r 1,1 55,97 1 4,s83 rs2,002 86s,341 1,155,971 - (e,726) 35 9,726 I 05,563 629,018 316 363,574 15$$ 734,s81 $ 363,890 Debt Service Transportation I&S Capital Improvement Revenue Refunding 2014 Cap Impr Rev Bds Series 2016 Jail Capital Imp Rev Lease Purchase Bonds 2015 FPL 2015 Lease Purchase Motorola -$ ) )<) -$ 946,000 240,794 13,366 745 443 433,307 433,7502,252 1,200,160 745 930,000 325,431 1,717 1,030,000 246,543 240,000 193,307 12s,000 58,026 3t,278 20,000 10,569 t83,027 s,000 r 5,000 10,570 - 31,278 t,r70,842 (82,337) 296,426 - 214,305 - 20,000 10,s70 (78,100) 204,285 443 4,008 t,2ss,43t 1,278,260 2r4,3M 433,307 20,000 10,569 (1,2s3,179) (78,100) (213,s59)(20,000) (10,569) t,170,842 $214,089$126,18s$746$4,4s1$-$ '1 19 Continued R.E\'ENUES Taxes: Property Tourist Motor fuel Local business Licenses and permits Specia[ assessments lntergovemmental Charges for sewices Fines and forfeitures Investment income Contributions from propert5r owners Miscellaneous Total revenues EXPENDITURES Current: General govemment Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court-related Capital outlay Debt service: Principal retirement Interest Other Total expenditures Excess (defi ciency) of revenues over (under) expenditures oTHER FINANCING SOURCES (USES) Transfers in Transfers out Lease purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total otler financing sources (uses) Net change il fund balances Fund balances - beginning Change in inventories ofsupplies Fund balance - ending St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended September 30,2016 Debt Service Capital Projects I&S 244,918 661 2,136 Port r&s Sports Complex Debt $ 293 1,219,886 16,556 313,342 1,t46,771 78,322 75,000 1,300,099247,7t5 293 t,s49,784 2,460 270,000 8,331 1,000 28r,791 (34,076\ 293 - 48,434 - 40,200 - 66r,217 - t,t62,421 - 595,000 - t45,205 740,205 1,912,274 809,579 (612,175) (779,s27) 884,7 r 8 (1,204,s l 6) (6,985) (41,061) 231,7t5 (779,s27) (319,798) 293 26,t72 30,0s2 1,619,199 (931,973) 7,389,124 s 192,654 $ 26,46s $ 1,649,2s1 $ 6,457,151 120 Capital Proiects County Capital State Revenue Share Bond County Capital Transportation Bond Jail Security Capital Improvement Revenue Energy Efficiency Upgrade Bonds 2015 FPL 2015 Improvements Sports Complex -$ 32,009 -$ 64,339 -$ 2s,848 -$ 76,713 s,690 32,009 64,339 25,848 76,713 5,690 1,15 8 200,663 42t,8993 1,6s0 2,060,586 1,33s,830 396,630 3,738,435 31,650 2,060,586 1,335,830 396,630 3,738,435 623,720 3s9 (1,996,247) (1,309,982) (319,917) (3,738,43s) (618,030) - (84,798) - 9,290,379 - 3,288,722 753,651 _ 3,203,924 - 9,290,379 753,651 359 2,850,283 (1,996,247) 6,689,694 r,893,942 (3 19,9 1 7) 7,040,494 5,55r,944 l 35,62 I 283,727 $ 2,8s0,642 $ 4,693,447 $ 1,893,942 $ 6,720,577 $ 5,ss1,944 $ 419,348 Continued 121 St. Lucie County, Florida Combining Statement of Revenues, Expenditures and Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended September 30,2016 CaDital Proiects MSBU Environmental Internal Land Finance Capital Projects REvENUES Taxes: Property Tourist Motor fuel Local business Licenses and permits Special assessments Intergoverrunental Charges for sewices Fines and forfeitures Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES Current: General govemment Public safety Physical environment Transportation Economic environment Human sewices Culture and recreation Coud-related Capital outlay Debt service: Principal retirement Interest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers in Transfers out kase purchase proceeds Proceeds from sale of capital assets Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balance - ending t4,692 12,682 145,346 70,713 693,438 26,73s 854,856 l r,881 10,000 864,856846 38,616 (687) 22.359 (1 77,s30) 984,078 $ 369,28r $ 60s,262 $ 806,s48 144,500 32,097 (171,418) (7,718,953) 3,013 t27,64r l 8,673 39,358 MSBU External Financed Pro_iects $- 9,954 683,484 Total Nonmajor Governmental Funds r 9,981,348 3,6s2,3s4 t,t46,777 57,503 t82,045 294,995 13,619,934 4,209,359 1,0t4,641 949,'164 1,596, I 85 1,748,832 48,4s3,737 2,274,783 6,0I0,413 2,687,277 8,021,414 t,947,932 3,r07,431 4,s6s,426 2,209,073 l 3,900,9s3 7,620,464 3,730,788 96,736 56,r72,690 (6, r 12) (6s7) (6,1;) ,i,l3i,i8l 10,903,221 (9,33',7,72t) 9,30s,379 22,359 6,679,753 7t,4r3,76t (163,392) $ 77,930,t22 22,359 166,8s9 202,422 3 1,410 573,852 122 THIS PAGE INTENTIONALLY LEFT BLAIIK 123 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Unincorporated Services Final Budget 1s0,88 1 I,7 6t,3t3 '702,236 2,t54,805 101,308 5t6,327 30.933 8,878,969 Variance Positive (Negative) 89,1 3 3 15,799 24,5t0 (l,883, l 07) 29,651 8s,233 69,343 Actual REVENUES Property Licenses and permits Special assessments Intergovemmental Charges for services Fines and forfeitures Investment income Miscellaneous Total revenues EXPENDITURES General govemment Public safety Physical environment Transportation Human services Culture and recreation Capital outlay Total expendihres Excess (defi ciency) of revenues over (under) expenditures OTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 7,880,844 6,356,836 (r,524,008) $ 5,335,807 $ 61 ,s85 2,073,547 94,674 114,350 50,000 s,424,940 7'7,384 24,5t0 190,440 t24,325 199,583 l 19,343 196.3 1 1 45.430 12,288,908 5,334,128 6,9s4,780 (4,408,064) 1,022,708 s,430,772 '7,02t,986 867,833 (2s7 ,708) 4t,679 (2s7 ,708) 4t,6',79 1,665,783 684,196 1,537,758 41,080 505,8 17 3 1,661 765,000 8,488,297 95,530 18,040 617,047 60,228 10,510 (728) 6.154,153 5,4'72,4st (390,672) r'71 $ 9,253,297 S 5,081,779518 Law Enforcement MSTU Grants and Donations Variance Final Actual Positive Final Budget Amounts (Negative) Budqet 3,47r,4'15 $ 2t,024 533 3,514,322 $ 2 1,895 20,847 -$ 69,880 140,000 1,100 -$ 74,080 105,068 3,683 Variance Positive (Negative) 4,200 (34,932) 2,583 Actual Amounts 42,847 $ 871 20,314 3,493,032 3,ss'7,064 64,032 210,980 182,831 (28,149) 2,051 2,0st 74,080 r0s,672 655 74,080 1,233 t04,439 655 2,05t 2,0st - 180,407 7s,313 105,094 3,490,981 3,555,013 64,032 30,573 107,518 76,945 (3,448,896) (3,4t9,718) 29,t78 (175,343) (11s,000) (3,448,896) (3,419,718) 29,t78 (175,343) (l1s,000) 60,343 42,085 1,041,014 13s,295 r,041,014 93,2t0 (r44,770) 274,287 (7,482) 274,287 r 37,288 $ 1,083,099 $ 1,176,309 $ 93,210 $ r29,5r7 $ 266,805 $t37,288 125 St. Lucie Count5i, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Librarv Special Finel Budget 238,41'1 Actual Amounts Variance Positive (Negadve) (128,641) 204 REVENI]ES Property Special assessments Intergovemmental Fines and forfeitures Investnent income Total revenues EXPENDITURES General government Transportation Culture and recreation Capital outlay Total expenditures Excess (defi ciency) of revenues over (under) expenditures oTIIER FTNANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balances - endirg 109,776 204 238,417 2r7,614 t3,4r2 231,026 '1,391 109.980 (128,437) 96,438 t3,337 t2t,t76 75 t09,77 5 l2l,25l 205 (7,1 86) '7,39t 205 (7,1 86) $ 7,391 $205 $ (7,186) Drus Abuse Special Assessment District Variance Final Actual Positive Final Budget Amounts (Negative) Budget Variance Actual Positive Amounts (Negative) -$ 48,001 69,1 63 -s 2t,162 1.164 -$ 25t,48'7 -$ 245,26t (6,226) 48,001 70,327 4,is; 3,oi; (r,687'l 22,326 2s6,246 248,333 (7,913) 249,060 210,626 38,434 t,t64 1,892 1,892 (40,000) (40,000) (40,000) (40,000) 249,060 210,626 38,434 7.1 86 3'.7,707 30,521 (9,195) (s,sls) 3,680 (e,1e5) (s,sls)3,680 1,892 t,892 46. l 09 68.435 22,326 6,1 09 92,163 28,435 92,t63 22,326 (2,009) 198,024 32,192 t98,024 34,201 $ 98,272 S 120,598 S 22.326 S 196,015 $230.2r6 $ 34,201 127 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30,2016 Parks MSTU Fioal Budget Actual Amounts Variance Positive (Negative) REVENUES Property Special assessments Intergovemmental Charges for services Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES General government Transportation Culture and recreation Capital outlay Principal retirement Interest Total expenditures Excess (defi ciency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 3,933,866 3,958,014 24,t48 3,591,38 r q 5rq s0,000 282,956 3,63 6,71 5 $ 9,924 28,198 45,334 395 (21,802) 221283.1'77 2,239,896 2,019,827 533,7'79 895,000 220,069 1,096,098r,629,877 895,000 r57.703 157.703 4,922,4'76 3,606,309 1,316,167 (988,6 l 0)351 705 I ,340,3 1s (134,307) (103,707) 30,600 (134,30'7) (103,707) 30,600 1,370,915 s 469,952 $ 1,840,867 $ 1,370,91s (1,122,9t7) |,592,869 247,998 t,s92,869 SLC Public Transit MSTU Variance VarianceFinal Actual Positive Final Actual Positive Budget Amounts (Negative) Budget Amounts (Negative) 1,966,561 $ 5,429,743 50,000 4,000 3,750 1,990,05s $ 2,479,032 53,411 32,8r4 3,750 (2,9s0,7tr\ 3,411 28,814 -$ 20,820 662,92s 43,t27 1,868 (3,293,867) 39,62'1 46 23,494 $ - $ 18,9s2 3,956,'192 3,500 - 28,177 28,223 7,4s4,054 4,ss9,062 (2,894,992) 4,007,421 755,095 (3,252,326) 8,860,21 3 298,553 4,670,9s2 3,384 4,t89,261 29s,t69 155,642 1,402,237 27,125 (8 16,88 l ) 4,122,422 rr4,022 6,433,879 - 752 752 269,664 7,836,1 l6 - 27,125 - 28,233 28,233 9,t58,766 4,674,336 4,484,430 8,161,890 1,613,989 6,547,90t (t,704,7t2\ (11s,274) 1,s89,438 (4,154,469) (8s8,894) 3,29s,s7s - +L|Z>O +ZrZy6 19,785 (805) (28s) 42,298 42,298 2,372,810 56,725 520 r9.78s 4t,493 42,013 (t1r,999) 2,724,219 t,609,223 351,409 (4,r12,976) 4,346,493 3,296,09s (224,07 t) s s91,588 $ 2,ss2,220 $ 1,960,632 $ 233,517 $ 3,30s,541 $ 3,072,024 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Airnort Final Budget Variance Positive Amounts (Negative) REVENUES Property Intergovemmental Charges for services Investment income Miscellaneous Total revenues EXPENDITURES General govemment Transportation Human services Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balances - endilg '7,999,t'75 733,649 7,265,526 9,185,234 1,69s,9s6 7,489,278 (2,249;798) (720,397\ 1,s29,401 1,018,53 I r,018,531 (82,s00) (82,500) 936,031 936,031 $- (5,966,199) (42,e2e) r6,963 32,288 (s,9s9,877)6,93s,436 1,186,059 (1,3t3,7 67) r,947,t6s 6,366,463 483,473 3,000 82.500 400,264 440,544 t9,963 1 14.788 975 55q 962,307 2t5,634 2,04s,444 223;752 r,529,40r 98,279 s 633,398 $ 2,26r,018 $ 1,627,680 130 Mosouito Control Impact Fee Collections Final Budget $ 3,67r,4s3 $ r 97,883 223,779 3,526,932 (59s,288) 6, l 35,903 Variance Positive Final (Negative) Budget Actual Amounts Actual Amounts Variance Positive (Negative) 1,635 3,7t9,6'71 $ 48,218 $ 523,151 325,268 89,653 84,653 -$-$ 1,63 55,000 2'7,872 3,902,208 4,4s9,977 t27.502 99,630 1,500 16,405 14,905 557,'769 1,500 18,040 t6,540 595,585 490,431 223,'7'19 2,600,381 1,036,882 5,s37,3't't 926,551 tt9,77s 53, I s8 66,617 105.1 54 4,346,296 3,3r4,59t 1,031,70s tt9;17s 53, I 58 66,6t',| (444,088) 1,145,386 t,s89,474 (118,275) (35,118) (1s1,200) (108,s04) 42,696 (151,200) (108,504) 42,696 83.1 57 t,632,t70 (5e8,526) (l 18,275) t47,232 (35,1 1 8) r47,232 83,1 57 - (t63,392) (163,392) $ s,s40,615 $ 6,410,867 $ 870,252 $ 28,957 $ 112,114 $83.r57 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Plan Maintenance RAD Final Budget -$ 374,769 -$ 1,1 16 427,t72 Variance Positive (Negative) l,l l6 52,403 Actual Amounts REVENIJES Property Tourist Charges for services Investment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES General government Public safety Economic environment Court-related Capital ouflay Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNAITCTNG SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - begiming Change in inventories ofsupplies Fund balances - ending 374,769 428,288 53,519 453,565 427,080 26,485 4s3,565 427,080 26,485 ('18,796) 1,208 80,004 ('78,796) 82,s93 1,208 80,004 28,s28 (54,06s) 3.797 $29,736 $ 25,939 Tourism Development Ist. 2nd.3rd and 5th Cent Court Facilify Final Budget Actual Variance Positive Final Amounts (Negative) Budget Actual Amounts Variance Positive (Negative) -s t,'745,707 850 -$ 2,432,468 t9,594 -$ 686,76t t8;744 -$ 787,9s0 1 1,000 -$ 62s,983 t6,392 (16t,967) s,392 - t'7,287 t'7.28'7 1,746,ss7 2,469,349 722,792 798,950 642,375 (156,575) 6 1,868 715,278 61,868 709,712 5,566 34,000 24,240 42,868 443,8s4 43,000 - 4'7'7,8s4 67,240 - t46,275 103.407 717,146 771,580 5,s66 69t,369 101,108 590,26t 969,411 1,697,769 728,3s8 107,s81 s4t,267 433,686 (1,117,560) (1,128,98s) (11,425) (s18,034) (515,341) 2,693 (l,r 17,s60) (1,128,98s) (r 1,42s) (518,034) (s15,341) 2,693 (148,14e) 1,s24,924 568,784 1,s24,924 716,933 (410,4s3) t,343,460 25,926 t,343,460 436,379 $ 1,376,7'75 $ 2,093,708 $ 716,933 $ 933,007 S 1,369,386 $ 436,379 St. Lucie Count5r, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 SLC Housine Finance Authoritv Finel Budget Actual Amounts Variance Positive Olegative) $- 664 13,064 t3,'728 REVENI]ES Property Licenses and permits- lntergovemmental Charges for services lnvestment income Miscellaneous Total revenues EXPENDITURES General government Physical environment Courl-related Capital outlay Total expenditures Excess (defi ciency) of revenues over (under) expendihres orHER FINANCING SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 4,739 17,803 4,966 18,694 -$ 227 89r 14,369 1,898 12,471 t4,369 (9,403) 1,898 t2,471 16;796 26,t99 (9,403) 6s,293 16,796 6s,293 26,t99 $ 55,890 $ 82,089 $ 26,199 Environmental Land Acquisitions Court Administrator Variance Positive Variance PositiveFinal Budget Actual Actual Amounts (Negative) Budget Amounts (Negative) 15,000 48,94t 233,84s 52,359 ( 181,486) s70,513 -$ 218,745 100 30,000 -$ 3,418 -$ (2t8,74s) 3,3 18 33,941 -$ 379,652 184,361 6,500 -$ 5,625 440,278 169,905 20,937 5,625 60,626 (14,4s6) t4,437 636,74s 66,232 53 29,947 - 23,913 1,341,130 23,9t3 t,142,268 l 98,862 345.447 - 345,447 37s,447 s3 375,394 1,36s,043 1,166,181 198,862 (14r,602) s2,306 193,908 (794,s30) (s29,436) 26s,094 570,269 439,329 (130,940) (20s,2s4) (74,3t4) 130,940 365,015 36s,015 (141,602) 271,068 52,306 271,068 193,908 (429,sls)(t64,421) 2,25t,594 2,269,692 26s,094 18,098 $ 129,466 $323.374 $ 193,908 $ 1,822,079 $ 2,105,271 $ 283,t92 135 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Erosion Control Final Budget t,433,262 $ 2,6t7,505 7,000 1,428 1,450,727 $ 403,919 67,437 1,428 76 Variance Positive (Negative) 17,465 (2,2t3,s86) 60,437 '76 Actual Amounts REVENI]ES Property Licenses and permits lntergovemmental lnvestment income Contributions from propert5r owners Miscellaneous Total revenues EXPENDITURES General govemment Physical environment Transportation Economic environment Culnrre and recreation Capital ouflay Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Intrafirnd Transfers Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories ofsupplies Fund balances - ending 4,0s9,19s 1,923,s87 (2,135,608) 51,095 6,100,682 3t4,842 51,09s t,t09,266 26t,199 4,991,416 53,643 6,466,619 1,42t,s60 s,045,059 (2,407,424) s02,027 2,909,4st 162,913 (417,s25)(241,3s4) (t62,913) t7 6,171 (254,6t2) (241,3s4\13,258 (2,662,036) 5,511,54',7 260,673 5,509,334 2,922,709 (2,213) $ 2,849,511 $ 5,770,007 $ 2,920,496 136 Housins Assistance SHIP Boatin g Improvement Proiects Final Budget $- 1,30s,69s 20,0r 1 t,394,595 -$ 432,677 24,391 502,'753 -$ (8 73,0 I 8) 4,380 Actual Amounts Variance Positive Final (Negative) Budget Actual Variance Positive Amounts (Negative) 66,425 1,500 99,036 l 1,354 32,61t 9,854 88,900 rr,23t (77 ,669) 468,299 (946,307)6'7.925 110,390 42,465 891,842 66,064 40,101 ,5 057 477,t06 20,'745 456,361 1,394,595 502,7s3 891,842 543,170 60,852 20,01I (34,4s4) (s4,46s) (47s,24s) 49,538 524.783 482.31 8 (20,0r r) (20,011) - (s,800)5,800 (5,800) 20,011 (34,4s4) t29,496 5,800 530,583(34,4s4) 129,496 (481,045) 1,048,356 49,538 1,048,356 $ -$95.O42 $ 9s,042 $ s67,3rt S 1,097,894 $ 530,s83 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Bluefield Ranch Imorovements REVENTJES Properly htergovemmental Charges for services lnvestment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES Physical environment Economic environment Culture and recreation Capital outlay Total expenditures Excess (dehciency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balaoces - beginning Change in inventories ofsupplies Fund balances - ending Final Budget s- 33 1,500 Variance Positive 200'133533 108 108 108108 t,425 /11 308 t,425 t34,266 t,733 t34,266 308 $ l3s,69l $r3s.999 $308 138 Florida Housins Grant Sports Complex Variance Final Actual Positive Final Budget Amounts (Negative) Budget Actual Amounts 263,826 93,204 Variance Positive (Negative) $- 228,0s1 11,444 ('70,267) -$ 1,254,t96 205,246 -$ 546,802 196 -$ (707,394) 196 722,647 238 -$ 170,622 s08,s00 r,300 736,5s1 12,744 - (20s,246) 276,901 319,299 42,398 1,459,442 546,998 (912,444) 957,323 1,332,420 3'75,097 1,458,114 735,467 2,t06,463 2,t76,730 1,328 r,090 1,459,442 736,55'1 722,88s 2,106,463 2,176,730 (70,267) - (189,5s9) (189,559) (844,310) 304,830 - 1,07'7,387 t,07'1,387 - t,077,387 r,07't,387 ( 1 89,559) 198,107 (1 89,5s9) 1 98,1 07 (71,7s3) 858,630 233,077 8s8,630 304,830 $ 8,548 $ 8,548 $ 786,877 $ 1,091,707 $ 304,830 St. Lucie CounQr, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 SLC Sustainabilitv District Variance Actual Positive Budget Amounts (Negative) REVENIIES Property Special assessments Charges for services Fines and forfeitures Investment income Total revenues EXPENDITURES Transportation Culture and recreation Principal retirement Interest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Issuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 20,800 8,314 (t2,486) $- 20,800 -$ 4,404 3,709 20t ( 16,396) 3,'709 20r 184,664 r76,800 2,104 s,316 - (61) - 619 7,864 (2,r04) (5,3 16) (61) s,564 (5,s64) 184,664 189,784 (s,120) (163,864) (181,470) (17,606) 172,964 185,468 12,504 172,964 185,407 12,443 9,100 3,937 (s,1 63) 619 $ 9,100 $ 4,s56 $ (4,s44) 140 Law Enforcement SLC Art in Public Places Variance VarianceFinel Actual Positive Final Actual positive Budget Amounts (Negative) Budget Amounts (Negative) 9s,47s -$ 94,9',75 s00 75,000 478 -$ 47 -$ 806 7s9 75,478 80647 '759 t0,047 - t0,047 9s,4'7s 7s.478 (19,997\ (10,000)806 10,047 (r01,730)r01,730 t7s,t28 ( l 75,128) (10r,730) (6,2ss) 6,255 l0l .730 175,128 (1 75, l 28) (t64,322)75,478 6,25s 8 1,733 I 65,128 71,'176 806 '7 r,776 81.733 $8 r.733 $_______2!p94 L_12;u $__!5!;22L St. Lucie Count5r, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 SLC Economic Develooment Final Actual Variance Positive Budget Amounts Grlegative) REVENIIES Propefty Local business lntergovemmental Charges for services Fines and forfeitures lnvesfonent income Miscellaneous Total revenues EXPENDITURES General government Public safety Court-related Capital outlay Total expendih.res Excess (defi ciency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending 55 s7,s83 2,388 56, l 98 56,1 98 56,198 56,198 (1,003) 1,385 2,388 s- 55,195 -$ 57,503 80 2,308 80 l9s (1,003) 11,988 1,3 85 11,988 2,388 $ 10,98s $ 13,373 2.388 Clerk of Court Sheriff Final Budget -$ 682,009 325,033 2s22 -$ 682,009 325,033 ) <)) -$ 2,972,350 1,372,711 6,1 6s -$ 2,122,350 t,3'72,'7t1 6,165 Variance Positive (Negative) (8s0,000) Actual Amounts Variance Positive Final (Negative) Budget Actual Amounts -$ 32,108 32,108 t,041,672 t,041,672 4,351,226 3,50r,226 (850,000) I,056,322 1,056,322 (14,6s0) (r4,6s0) 4,825,057 630,390 4,825,057 630,390 5,455,447 5,4ss,447 (1,104,221) (r,9s4,22r) (850,000) 2,387,770 3,139,9'71 752,201 (r,10s,379) (1,105,379) 1,282,391 2,034,s92 7 s2,201 1,042,565 t3,7 57 1,042,565 t3.757 (r4,650) 579,24'1 (14,6s0) 646,679 67,432 t78,t'10 t,632,1t0 80,371 r,632,r l0 (97,79e) $ 564,597 $ 632,029 $67.432 $ __tIt92!q_$______l42A8l_$______:plt22l 143 St. Lucie Count5r, Florida Budgetary Comparison Schedules Governmental Funds For the Year Ended September 30, 2016 Supervisor of Elections Final Budget $ 38,127 38,t27 42,7t0 Actual Amounts Variance Positive (Negative) REVENTJES Intergovemmental Total revenues EXPENDITURES General government Total expendifwes Excess (defi ciency) of revenues over (under) expenditures oTHER FINANCTNG SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances - beginning Change in inventories of supplies Fund balances - ending $ 38,t27 $ 38.t27 42,7 t0 42,7t0 42,7t0 (4,583) (4,583) 4,583 4,583 4,583 4,583 35 35 35$ 't44 THIS PAGE INTENTIONALLY LEFT BLANK St. Lucie County, Florida Budgetary Comparison Schedule Governmental Funds For the Year Ended September 30, 2016 -$ 1 10,000 51,728 lmpactFeesl&S Variance Final Positive Budget Actual (Negative) REVENUES Propefi lntergovernmental lnvestment income Miscellaneous Total revenues EXPENDITURES General government Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending 161,728 161,728 (161,728) (161,728\ 1s2,OO2 152,002 152,002 152,002 (e,726)(s,726) 9,726 9,726 -$ 110,000 51,728 Sales Tax Revenue Bonds I & S CountvCapital l&S Variance Final Positive Final Budget Actual (Negative) Budget 3,755,78; 6,s88 3,953,80; 36,61'1 -$ 198,020 30,023 -$ 14,348 Variance Positive (Negative) (s,484) -$ 8,864 3,762,375 3,990,418 228.O43 14,348 8,864 (s,484) (971,496) (759,778) 865,341 865,341 865,341 865,341 1,066,235 98,284 1,066,235 98,284 211,718 (1,150,171) (1,155,6s5) (5,484) 1,155,971 1,155,971 1,155,971 1,155,971 1,071 2,330,000 1,071 2,330,0002,400,800 2,400,8002,000 18,325 (16,325) 4,733,871 4,750,196 (16,325) 1,164,519 1,164,519 (106,155) 105,563 . 211,718 5,800 316 (5,484) 341,136 629,018 287,882 363,574 363,574 $ 234,981 $ 734,581 $499,600$ 369,s74$ 363,8s0$ (5,484) St. Lucie Coun$r, Florida Budgetary Comparison Schedule Governmental Funds For the Year Ended September 30, 2016 $ 3,040 3,040 930,000 325,431 5,000 1,170,842 Transoortation I & S Variance Positive Budget Actual (Negative) REVENUES lntergovernmental Fines and forfeitures lnvestment income Total revenues EXPENDITURES General government Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCING SOURCES (USES) Transfers in Lease purchase proceeds lssuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending $ 2,252 (788\ 2,252 (788) 930,000 325,431- 5,000 1,260,431 1,255,431 5,000 (1,257,391) (1,253,17s) 4,212 1,170,842 1,170,842 1,170,842 (86,549) 296,426 (82,337) 296/26 4,212 $ 209,877 $214,O89 $ t,ztz Capital lmprovement Revenue Refundinq 2014 Cap lmpr Rev Bds Series 2016 Jail Final Budget Variance Positlve Final(Negative) Budget $ 745 Variance Positive (Negative) 745 946,000 $ 946,000 $324,809 240,794 -$ (84,015) 13,366 13,366 1 ,270,809 1 ,200,'t 60 (70,649)745 745 125,000 58,026- 2,000 31,278 31,278 1,280,260 1,278,260 2,000 214,305 214,304 (s,451) (78,100) (68,64e) (214,305) (213,559) 746 183,027 183,027 (31,278)31,278 - 31,278 31,278 214,305 214,305 (e,451)(78,100)(68,64e)746 204,285 204,285 $ ts+,834 $ 126,18s $ (68,649)$ - S 746 $ 1,717 1,030,000 246,543 2,000 1,717 1,030,000 246,543 125,000 58,027 746 746 St. Lucie County, Florida Budgetary Comparison Schedule Governmental Funds For the Year Ended September 30, 2016 Gapital lmp Rev Bonds 2015 Final Budget 240,000 193,307 Variance Positive (Negative) REVENUES lnvestment income Miscellaneous Total revenues EXPENDlTURES Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FINANCING SOURCES (USES) Transfers in Lease purchase proceeds Total other fi nancing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending $ -$443 $443 455,093 433,307 (21,786\ 455,093 433,750 (21,343) 240,000 193,307 433,307 433,307 21.786 443 (21,343\ 21,786 443 (21,343) 4,008 4,008 $ 21,786 $ +,+Sr $ (17,335) Lease Purchase FPL 2015 Lease Purchase Motorola Varlance Final Positive Flnal Budget Actual (Negative) Budget Varlance Positlve Actual (Negative) :$$-$-$:$ 5,000 5,00015,000 15,000 20,000 20,000 - 10,569 10,569 - 10,569 10,569 - (10,569) (10,56e) - 10,570 10,570 10 570 -11- -$-$ -$1$ 1$ 't51 St. Lucie County, Florida Budgetary Comparison Schedule Governmental Funds For the Year Ended September 30, 2016 Portl&S Final Budget REVENUES Property Tourist lntergovernmental lnvestment income Contributions from property owners Total revenues EXPENDITURES General government Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FINANCING SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending 241,717 634 3,120 244,918 $ 661 2,136 Variance Positive (Negative) 3,201 27 (e84) 245,471 247,715 2,244 1,000 1,000 281,791 281,791 (36,320) (34,076) (8,848) (8,848) (6,985) 2,460 270,000 8,331 2.244 1,863 (6,985) 1,863 (41,061) 233,715 2,460 270,000 8,331 (45,168) 233.715 4,107 $ 188,547 $ 192,654 $ +,rOZ Capital Proiectsl&S Sports Complex Debt Final Budget Variance Positive Final(Negative) Budget Variance Positive (Negative) 359,1 89 14,681 -$ 332 l$ 293 loz762 -$ (3s) -$ 860,697 1,875 595,000 145,205 1,219,886 16,556 595,000 145,205 1,113 (1,113) 250,000 313,342 63,342 (1,152\ 1,112,572 1,549,784 437,2121.445 762 740,205 740,205 683 293 (390) 372,367 809,579 437.212 - (771,139) (77s,527\ (8,388) - (771,139) (779,5271 (8,388) (3e0) (3e8,772)30,052 428,824 26,172 26,172 1 ,6't 9,1 99 1 ,61 9,1 99 $ 26,855 $ 26,46s $ (390) $ 1,220,427 $ 1,649,251 $ +ZA,eZq St. Lucle County, Florida Budgetary Comparison Schedules Govemmental Funds For the year ended September 30, 2016 SHI Special Assessment Bond Final Budget Actual Variance Positive (Negative) 123,828 1,361 REVENUES Property lmpact fees Special assessments lntergovemmental lnvestment income Miscellaneous Total revenues EXPENDITURES Culture and recreation Capital outlay Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers out Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending -$ 664,618 '149 788,446 't ,5'10 664,767 789,956 9.685 9,685 '141,398 521.154 1 37,000 '137,000 7,667 1,143 144,667 138,143 520,100 651,813 (20,480) (10,7s5) (20,480) (10,795) 499,620 641 ,018 $ 1,490,692 $ 2,'153,244 154 N Lennard Road Bonds I and S lmpact Fee Variance Final Positive Final Budget Actual (Nogative) Budget -$ 634,628 1 ,913 -$ 629,739 20,915 -$ 1,960,108 500,000 175,600 -$ 7,058,232 12,980 298,470 289,1 16 5,35'1 ,813 Variance Positive (Negative) 5,098,124 (487,02o) 122,870 29,884 16,245,441 21,201,215 -$ (4,88e) 19,002 - 191,916 191,916636,541 650,654 14,113 2,635,708 7,561,598 4,925,890 $5,00; sg5,00;'146,890 146,890 - 319,000-_-r,,597,254_ (19,930,058) 2,000 2,000 483,890 481,890 '-OO0 21 .916,254 5,640,929 16,275.325 152,651 168,764 16,113 (19,280,s46) 1,920,669 21,2O1,21s (1 10,200) (8,622\ 101,578 (649,s12) (649,512)(110,200) (8,622\ 101,578 (649,512) (649,512) 42,451 1,553,168 $ 1 ,595,619 $ 160,142 1 17,691 1,271,157 26,243,542 24,7,t9,757 (1,523,785) 0___________aa9J4q_ $_________!J!44_ $________2ff90,9!_ $_______I!SZ4A9_ 155 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the year ended September 30, 2016 Countv Capital REVENUES Property Motor fuel lntergovernmental lnvestment income Miscellaneous Total revenues EXPENDITURES General government Physical environment Transportation Capitaloutlay Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FtNANCING SOURCES (USES) Transfers in Transfers out lssuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending (35e,368) (319,7e8) (s,6s8,570) 7,388,473 $ 1,729,903 (931,973) 7.389.124 39,570 4,726,597 651 $ 6,457,151 4,727.248 Final Budget 1,001,500 895,000 20,000 75,000 1,991,500 556,135 159,310 1,479,307 5,095,950 7,290,702 (5,299,202\ 884,718 (1,244,086) Actual 1,146,777 78,322 75,000 1,300,099 48,434 40,200 661,217 1,162,423 1,912,274 (612,175\ 884,718 (1 ,204,516) Variance Positive (Negative) $ 145,277 (895,000) 58,322 (691,401) 507,701 119,110 818,090 3,933,527 5,378,428 4,687,027 39,570 Countv Capita! State Revenue Share Bond County Capital Transportation Bond Final Budget -$ 14,250 -$ 32,009 :$ 28,500 :$ 64,339 Variance Positive (Negative) 35,839 Variance Positive Final (Negative) Budget fi,75;_ 14,250 32,009 17,759 28,500 64,339 35,839 1,000,000 1 ,413,888 1,000,000 31,650 1,382,238 5,047,763 2,060,586 2.987.1772,413,888 31,650 2,382,238 s,047,763 2,060,586 2,987,177 (2,399,638)2,399,997 (5,019,26s) (1,996,247\ 3,023,016 (109,421)109,421 (2,399,6s8) 2,850,283 2,850,283$ 450,645 $ 2,850,642 2,399,997 (1O9,421) (s,128,684)(1,996,247\ 109,421 3,132,437 6,689,694 6,689,694$ 2,399,997 $ 1,561,010 $ 4,693,447 $ 3,132,437 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the year ended September 30, 2016 Jail Security Upgrade REVENUES lnvestment income Total revenues EXPENDITURES Capitaloutlay Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FINANCING SOURCES (USES) Transfers out Lease purchase proceeds lssuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending $ 25,848 25,848 3,203,924 1,335,830 3,203,924 1,335,830 1,868,094 1,868,094 (1,309,982) 1,8e3,e42 Final Budget Actual (84,798) 3,288,722 3,203,924 1,893,942 Variance Positive (Negative) 25,848 25,848 1,893,942 1 Capital lmprovement Revenue Bonds 2015 Enerqy Efficiencv FPL 2015 Variance Positive Final(Negative) Budget $ z0,zra$ z0,zrs$ -$ 9,290,379 Variance Positive (Negative) $76,713 76,713 6,960,000 396,630 6,563,370 9,290,379 3,738,435 5,551,9446,960,000 396,630 6,563,370 9,290,379 3,738,435 5,s51,944 (6,960,000) (31e,917) 6,640,083 (e,2e0,379) (s,738,435) 5,551,944 9,290,379 - 9,290,s79 9,290,379 (6,960,000) (319,917) 6,640,083 - 5,551,944 5,551,944 7,040,494 7,040,494 $ 80,4s4 $ 6,720,577 $ 6,640,083 $ - $ 5,551,944 $ 5,551,944 't59 St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the year ended September 30, 2016 Soorts Complex lmorovements Final Budget Variance Positive (Negative) 4,740 Actual REVENUES Property lnvestment income Contributions from property owners Miscellaneous Total revenues EXPENDITURES General government Transportation Culture and recreation Capitaloutlay lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers in Transfers out Proceeds from sale of capital assets lssuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending 753,651 753,651 -$ 950 -$ 5,690 7409505,690 1,158 249,266 608,517 1,158 200,663 421,899 48,603 186,618 623,720 (618,030) 235,221 239,961 753,651 753,651 (104,340) 283,727 135,621 239,961 283.727 179.387 $419,348 $ 239,961 Environmental Land Caoital MSBU lnternal Financed Proiects Final Budget $ - $ .,0',i- 127,6412,850 14,692 2,850 145,346 Variance Positive Fina! (Negative) Budget -$ 3,013 127,641 -$ 14,333 107,313 -$ 18,673 39,358 Variance Positive (Negative) 4,340 (67,e55) 12.68211,842 142,496 - 12,682 121,646 70,713 (50,933) 846 10,941 846 10,941 10,941 153,437 196,800 5,000 201,800 (80,154) (e,130) 161 ,000 71,716 38,616 1 63,1 84 26,735 11,881 170,065 (11,881) 5,000 11 787 (8,937) 144,500 32.097 112.251 22,359 22,359 (687) (40,306) 69,587 29,281 22,359 151 ,870 (687) (8,e37)166,859 175,796 31,410 202,422 202,422 - 504,265 573,852 69,587$ rgs,+as $ s6g,zar $ 17s,796 $ szs,gar $ 0os,zoz $ zg,zet St. Lucie County, Florida Budgetary Comparison Schedules Governmental Funds For the year ended September 30, 2016 MSBU External Financed Proiects 683,484 693,438 Variance Positive (Negative) 6,1 04 658.484 664,588 Actual REVENUES Property lnvestment income Contributions from property owners Total revenues EXPENDITURES Transportation Principal retirement lnterest Other Total expenditures Excess (deficiency) of revenues over (under) expenditures oTHER FTNANCTNG SOURCES (USES) Transfers out lssuance of long-term debt Total other financing sources (uses) Net change in fund balances Fund balances - beginning Fund balances - ending -$ 9,954 1 ,1 1 0,887 209,000 39,1 99 854,8s6 10,000 256,031 209,000 39,1 99 10,000 369,086 (942,468) 27,120 (431,000) 864,856 504,230 (171,418) 1,168,818 (6,112) (6,112) (403,880) (177,530) 984,078 764,938 764 THIS PAGE INTENTIONALLY LEFT BLANK sT. LUCIE COUNTY, FLORTDA Nonmaior Enterorise Fund Descriptions Enterprise Funds Enterprise funds impose fees or charges on those who use their services, primarily to customers outside the ftnancial reporting entity. South Hutchinson Utilities Fund - The fund is used to account for the operation of a wastewater freatment plant for certain residents in various sections of the County. Building Code Fund - The fund is used to account for permit fees to pay for the expenses for building code compliance. 164 St. Lucie County, Florida Combining Statement of Fund Net Position Nonmajor Enterprise Funds September 30,2016 South Hutchinson Utilities $ 6,048,730 14,31 I 199,948 18,024 6,281,013 781,187 1,729,310 19,948,62',7 186,028 (t4,7s2,0t5) I s9,896 8,053,033 14,334,046 109,515 2'.72,853 14,311 I 0,594 297,758 12,582 39,3 r 6 252,915 304,8 1 3 602,571 Building Code ASSETS Current assets: Cash and investaents Restricted assets: Cash and investments-customer deposits Accounts receivable, net Irterest receivable Prepaid items Total current assets Non-curent assets: Restricted assets: Cash and investrnents--renewal and replacement I-and Buildings and improvements Machinery and equipment Accumulated depreci ation Construction in progress Total non-current assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions LIABILITIES Curent liabilities: Accounts payable and other current liabitities Deposits payable from restricted assets Due to other govemments Accrued compensated absences Tohl current liabilities Non-cr:rrent liabilities: Accrued compensated absences, net OPEB tiability Net pension liability Total non-curent liabilities Total liabilities DEFERRED INFLOWS OF RESOURCES Defened inflows related to pensions NET ASSETS Net investment in capital assets Restricted for: Renewal md replacement Unrestricted Total net position 3,69s,750 4,193 9,748 370 9,744,480 14,31 I 204,14r 27,772 370 234 3,710,061 288,229 (288,229) 3,710,061 4'74,38s 45,717 12,054 7t,679 129,450 65,252 479,901 r,r12,203 1,657,356 1,786,806 6,446 9,991,074 78 1,1 87 1,729,310 19,948,627 474,257 (1s,040,244) 1 s9,896 8,053,033 18,044,t07 583,900 3 18,570 14,31 1 12,054 82,273 427,208 7'.|,834 5t9,217 1,36s,1 18 1,962,169 2,389,377 6,680 7,271,846'7.2',71.846 165 St. Lucie County, Florida Combining Statement of Revenues, Expenses, and Changes in f,'und Net Position Nonmajor Enterprise Funds For the Year Ended September 30,2016 Operating revenues: Charges for services Miscellaneous Total operating revenues Operating erpenses: Salaries, wages and employee benefits Contractual services, materials and supplies Depreciation Total operating expenses Operating income Nonoperating revenues (expenses): Investuent income Total nonoperating revenues (expenses) Change in net position Net position - beginning Net position - ending South Hutchinson Utilities $ 2,359,551 37,388 2,396,939 303, r62 1,562,24t 781,3 86 2.646,789 (249,8s0) 74,864 74.864 (r74,986) t4,015,742 $ 13,840,756 Buildlng Code $ 2,068,301 6s8 2,068,959 1,281,059 339,168 r.620.227 448,732 39,056 39,056 487,788 1,903,406 s 2,391,194 Total $ 4,427,852 38,046 4,465.898 1,584,221 1,901,409 781,386 4.267,016 198,882 I 13,920 I 13,920 312,802 15,919,148 $ 16,231,9s0 Cash flows from operating activities Cash received from customers Cash paid to suppliers Cash paid for employee services Other receipts Net cash provided by operating activities Cash flows from noncapital financing activities Purchases of capital assets Net cash used for capital and related financing activities Cash flows from capital and related financing activities Interest on investrnents Net increase in cash and investments Cash and investrnents at beginning ofyear Cash and investments at end of year Cash and investments classified as: Current assets Restricted assets Total cash and investments at end ofyear Reconciliation of net operating income Qoss) to net cash provided by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Accounts receivable Prepaid items Accounts payable and accrued liabilities Accrued compensated absences Deposits payable OPEB liability Pension liability Net cash provided by operating activities St. Lucie County, Florida Combining Statement of Cash tr'lows Nonmajor Enterprise Funds For the year ended September 30,2016 South Hutchinson Utilities 2,36s,664 ( r,458,048) (27s,896) 37,3 88 669, l 08 (86,s06) (86,506) 72,'720 6\\ 1,)) 6,1 88,906 6,844,228 568,546 t,23'1,654 (86,s06) (86,s06) 37 ,090 109,8 10 605,636 1,260,958 3,090,114 9,279,020 3,695,7s0 10,539,978 Building Code 2,064,t08 (346,690) (i,149,s30) 6s8 Total $ 4,429,112 (1,804,738) (t,42s,426) 38,046 $ 6,048,730 795,498 6,844,228 3,695,7s0 $ 9,744,480 795,498 3,695,'750 10,539,978 $ (249,8s0) 781,386 5,866 r06,409 4,r44 244 5,24t 15.668 448,732 (4,1 93) (370) 5,478 19,663 32,445 66,'791 $ s68,s46 37,686 82,459 $ t,23'.7,6s4 r 98,882 781,386 r,673 (370) r 1 1,887 23,807 244 167 AGENCY FUNDS St. Lucie County, Florida Combining Statement of Changes in Assets and Liabilities Agency Funds For the year ended September 30,2016 Board of Countv Commissioners Beginning Balance Additions Deletions Ending Balance Assets Cash and investments Accounts receivable Due from other governments Interest receivable Total assets Liabilities Accounts payable and other current liabilities Deposits payable Due to other governments Agency funds on hand Total liabilities 7,35t,411 29,664 14,804 14,095 $ 6,369,819 $ 7,39s,170 $ 6,3 1s,787 $ 798 38,430 $ 7,933,049 39,055 14,805 $ 7,986,909 s 5,734,149 798 29,039 14,094 $ 5,778,080 5,335,225 $ 6,369,81e 63,328 $ 530,2s2 441,0t4 1,473,270 579,983 1,070,869 7,074,174 $ 10,198,296 $ 1,499,885 6t8,672 t,097,343 7,574,135 $ 10,790,035 $ 36,713 491,s63 414,540 4,935,264 $ 5.778.080 Clerk of the Circuit Court Beginning Balance Additions Deletions Ending Balance Assets Cash and investments Total assets $ 13,766,416 $ 189,138,629 $ 13,766,416 $ 189,138,629 $ 19t,324,336 $ 11,580,709 s 191,324,336 $ 11,580,709 Liabilities Accounts payable and other current liabilities $ Due to other governments Agency funds on hand Total liabilities $ 954$ 40,410,286 41,148,396 148,727,389 150,17s,940 $ 189,138,629 g 191,324,336 3,9ss,921 9,810,495 $ t3,766,416 $ 9s4 3,277,911 8,361,944 $ r 1.580.709 Beginning Balance Additions Deletions Ending Balance Assets Cash and investments Accounts receivable Due from other governments Total assets Liabilities Accounts payable and other current liabilities Agency firnds on hand Total liabilities 93,739 2,383,477 $ 1,7t7,747 $ 6,161,513 1,624,008 $3,561,878 216,158 3,616,780 216,158 2,410,602 $ 6,303,540 1,569,106 6,614 $ r,57s,720 $ 11,337 $ 1,792,604t,706,4r0 2,482,978 $ t,717,747 $ 4,275,582 $ 1,773,844 $ 30,097 2,643,765 t,545,623 $ 4,417,609 $ t,57 5,720 169 TaY Cnllecfnr Assets Cash and investrnents Due from other governments Total assets Liabilities Due to other governments Agency firnds on hand Total liabilities Tnfql Aoencw I'rrnds Assets Cash and investments Accounts receivable Due from other governrnents Interest receivable Total assets Liabilities Accounts payable and other current liabilities Deposits payable Due to other govemments Agency f,mds on hand Total liabilities Beginning Ending Balance Additions Deletions Balance s 5,225,077 10.437s 5,235,508 $ s34,534,704 $ s34,406,018 $ s,353,757 40.479 36.13t 14.185$ 534.575.183 S s34.442.149 S s.367942 1,285,009 1t2,778,839 3,950,499 564,t68,674s 5.23s.s08 s 676.947.s13 I 13,189,330 563.625,749s 676.815.079 BeginningBalance Additions $ 26,931,282 $ 734,586,622 798 2l6,ls8142,606 2,453,62014,804 14.095s 27.089,490 S 731.270.495 EndingDeletions Balance $ 737,280,183 s 24,237 ,721216,158 7982,546,388 49,83814,805 14.094s 740,057,534 S 24.302.4sr s 74,665 $ 3,266,828530,252 579,983 5,681,944 154,259,994 20,802,629 722,453,215s 27J189,490 S 880.560.020 $ 3,213,729 $ 67,7646t8,672 491,563155,435,069 4,506,869724.019.589 t9,236,255$ 883.347.0s9 S 24.302.451 170 Sfafisfical Section This part of the St. Lucie County, Florida's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County's overall financial health. Contents Page (s) Financial Trends (Schedules 1-5) 172-182 These schedules contain trend information to help the reader understand how the County's financial performance and well-being have changed over time. RevenueCapacity (Schedules 6-9) 184-189 These schedules contain information to help the reader assess the factors affecting the County's ability to generate its property and sales taxes. DebtCapacity (Schedales 10-14) 190-198 These schedules present information to help the reader assess the affordabiliry of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Demographic and Economic lnformation (Schedules 15-16) 200-201 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Operating lnformation (Schedules 17-19) 202-215 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. St. Lucie County, Florida Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 200920082007 $ 387,33',1,46s 1t6,843,373 r 08,991,758 $ 613,172,596 2010 $ 393,795,950 105,210,654 125,436,t64 $ 624,442,768 Governmental Activities Net Investrnent in Capital Assets Restricted Unrestricted Total Governmental Activities Net Position Business-Type Activities Net Investment in Capital Assets Restricted Unrestricted Total Business-Type Activities Net Position Primary Government Net Investment in Capital Assets Restricted Unrestricted Total Primary Government Net Position Notes: $ 238,439,239 $ 355,838,268 145,009,148 119,697,213 105,237,97r 94,912,306 $ 488,686,358 S 570,447,787 $ 67,383,013 3,332,278 2,425,365 $ 73,140,6s6 s 65,548,641 $ 74,634,626 $ 69,955,818 2,666,696 2,093,927 t,425,t4s 3,294,028 641,560 6,t30,912 $ 71,509,365 $ '17,370,113 $ 77,511,875 $ 30s,822,2s2 $ 421,386,909 148,341,426 122,363,909 107,663,336 98,206,334 $ s61,827,014 $ 64r,9s7,rs2 $ 46r,972,091 $ 463,7s1,768 118,937,300 106,635,799 109,633,3 18 131 ,567 ,076 $ 690,542,709 $ 701,9s4,643 (1) The County implemented GASB Statement No. 63 and Statement No. 65 effective October l, 2012. Pdor periods are not restated. (2) The County implemented GASB Statement No. 68 effective October 1 ,2014. Prior periods are not restated. 172 Schedule I 201t $ 417,878,513 103,302,009 tt0,728,785 $ 631,909,307 2012 s 433,4s't,698 1 1 7,580,1 60 74,043,785 $ 625,081,643 $ 446,676,1t4 I 08,397,750 s9,598,364 $ 614,672,228 2013 (1) 2014 20ts (2) 20t6 $ 459,074,5s1 S 467,s9s,932 130,699,394 88,036,716 42,527,312 6,048,762 s 632,30r,2s't $ s61,681,410 $ 4'73,852,620 89,52r,647 (6,358,1 67) $ ss7,016,100 $ s7,7 s2,922 $ s4,461,4472,138,626 2,226,077(1s,793) 7,026,387$ 59,875,755 $ 63,713,91 I $ s2,s38,483 $ 55,721,56s2,021,94t 4,580,'177 8,236,652 1,'197,072 $ 62,79'.7,076 $ 62,099,414 $ 55,9'.16,445 $ 57,093,744 t,7 s6,949 1,909,s8841'7,sr7 (2,260,917) $ 58,1s0,9r1 $ 56,742,4t5 $ 47s,631,435 105,440,635 rt0,7t2,992 s 691,785,062 $ 487,919,145 $ 499,214,597 $ 514,796,116 $ 523,572,3'77 tt9,806,237 r 10,419,691 135,280,171 89,193,665 81,070,172 67,835,016 44,324,384 6,466,279 $ 688,795,554 $ 677,469,304 $ 694,400,67r S 619,832,32r $ s30,946,364 91,43r,235 (8,619,084) $ 613,758,515 173 St. Lucie Counfy, Florida Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 2010 Expenses Governmental Activities: General govemment Public safety Physical environment Transportation Econornic environment Human services Culture and recreation Court related Interest on long-term debt Total Govemmental Activities Expenses Business-Type Activities: Bailing & recycling Golfcourse Water & sewer Spots complex (l) Building code Total Business-Type Activities Expenses Total Primary Government Expenses Program Revenues Govemental Activities: Charges for Services: General govemment Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court-related Operating Gralts and Contributions Capital Grants and Contributions Total Govemmental Activities Program Revenues Business-Type Activi ties: Charges for Services: Bailing & recycling Golf coune Water & sewer Sports complex (l) Building code Operating grants md contributions Capital grants and contributions Total Business-Type Activities Progam Revenues Total Primary Government Program Revenues Notes: $ 63,614,16r 78,240,462 8,042,29',7 29,664,790 8,422,428 1 3,364,830 19,947,!72 1 8,6 I 5,706 5,919,086 24s,830,932 14,96'7,247 2,901,0t'1 8,027,3t3 2,327,224 3,104,806 31,327,607 $ 277,1s8,539 $ 44,2',77,856 84,?80,648 6,222,927 24,824,s86 7,4',73,221 13,499,3 l s 21,223,80s 19,69t,162 6,888,49 I 228,882,01 I I 5,140,88 I 2,t93,506 7,819,445 2,474,503 2.518,70',7 30,147,042 $ 259,029,053 $ 42,87',1,l',l5 89,424,347 8,094,926 27,406,2U 7,100,209 I 5,524,800 t7,908,t92 2t,2',15,9t4 7,84s,84 l 237,4s7,668 17,177,740 1,896,586 7.920,678 2,560,552 t,877,438 31,632,994 s 269,090,662 $ 39,7'.13,965 83,268,746 6,333,69',7 20,902,s01 5,526,431 1s,333,1 75 tt,738,266 17,459,274 7,514,820 207,8s0,88 l 17,953,102 1,839,557 '1,968,786 2,591,057 1,604,352 3 1,9s6,854 $ 239,807,73s $ 24,734,123 7,322,t88 53,506 622,268 63,986 1,050,27 4 12,891,1 l0 3 1,301,616 18,066,436 96,1 05,507 l5,l l 1,647 1,397 ,833 6, I 06,403 4',70,160 2,299,363 220,29r 25,605,697 $ r2r,7l 1,204 $ s,361,96s t,099,729 5,842 767,088 1,089,601 10,095,860 16,966,342 43,900,419 '19,286,846 13,467,086 t,320,r23 6,1 10,07s 529,1 t7 1,590,565 314,540 32r,270 23,652,',|76 $ 102,939,622 s 9,838,157 1,7 48,90r 760,338 3,090 |,079,522 7,228,192 12,262,s76 60,4 I 8,960 93,339,736 tL,285,719 I,2 I 9,908 6,634,292 56'1,9t1 I,105,81 I r,641,479 r2,693,462 35,148,582 $ 128,488,318 s 9,309,384 2,354,431 300 606,167 37,500 t,004,7 56 1,482,202 18,980,12? 30,660,239 64,435,106 14,408,053 807,279 7,249,242 505,1 9 1 1,060,278 s,228,948 287,153 29,546,144 $ 93,981,2s0 (1) Sports Complex moved from Business-T1pe Activities to Govemmtal Activities in FY 2011 (2) The County implemented GASB Statement No. 63 and Statement No. 65 effective October l, 20i2. Prior periods are not reslated (3) The County implernented GASB Statement No. 68 effective October 1,2014. Prior periods are not restated. Schedule 2 20tt 2ot2 2013 (2) 2014 2015 (3) 2016 $ 38,s78,353 82,023, l 53 6,892,704 22,854,975 8,838,s69 8,',|72,655 18,772,290 t7 ,62',7,4t7 6,s08,621 210,868,737 23,335,807 1,713,005 7,761,091 N/A 9s 1,883 33,761,',786 $ 244,630,s23 s 9,189,285 1,468,71s 637,1 l0 1,637,068 1,709,8 19 14,155,043 2t,515,877 s0,312,917 14,1 30,388 1,033,500 7,697,212 N/A 1,0 1 8,835 94,868 23,9'.14,803 $ 74,287,720 $ 38,949,324 78,369,804 s,294,586 24,933,466 10,736,029 t4,225,839 l ?,848,82s r'7,917 ,521 5,942,286 214,2t7,680 10,063,706 r,60t,420 9,3 l 1,539 N/A 928,933 2 1,905,598g 236,123,278 $ 39,189,800 80,824,313 1 1,024,908 23,936,104 8,659,048 12,733,22',7 18,'713,322 l 7,983,0 1 3 5,1 I 6,657 2 I 8,1 80,392 I 3,8 I 5,36 I 1,615,468 10,002,8 l4 N/A 1,028,274 26,52t,917 $ 244,',102,309 $ 41,069,060 83,550,7 l 5 7,84 1,1 05 2t,829,373 8,214,241 11,207,697 \9,465,292 t9,r9s,928 4,725,479 2 1 7,098,890 1s,306,490 1,33s,004 8,689,146 N/A 1,089,766 26,420,406 $ 243,519,296 s 45,51?,639 86,992,156 6,346,886 23,659,348 5,819,303 I 1,651,205 17,743,969 21,12r,793 4,25t,736 223,t04,035 t7,456,246 1,282,908 8,s93,889 N/A 1,360,909 28,693,9s2 $ 251,797 ,987 $ 8,38s,062 2,340,823 528,1 80 1,77',|,3\2 8,686,681 12,s79,675 t5,021,976 49,32s,709 15,938,866 t,337,670 8,058,73 I N/A 1,606,662 87,089 27,029,0t8 $ 76,354,727 s 47,318,679 94,870,7 50 6,314,624 22,789,966 6,978,500 12,666,374 1 9,880,606 20,289,s82 4,207,622 235,316,703 I 8, r 8s,680 1,415,595 9,315,147 N/A t,620,227 30,s36,649 $ 265,853,352 $ 9,167,598 2,232,876 450 464,318 37,500 1,671,311 1,785,069 18,47 4,7 t8 19,691,9s9 s3,szs,799 13,926,123 r,036,431 '7,833,662 N/A 1,167,284 73,828 24,03',1,328 $ 77,563,12',7 s 10,386,676 2,179,484 452,t01 37,500 1,603,674 3,858,576 26,818,476 25,232,741 '10,569,228 t4,463,656 985, l 64 '7,689,312 N/A I,1 8 1,389 99,213 24,418,734 s 94,987,962 $ 8,128,47s 4,265,688 503,1 95 r,698,425 8,933,783 12,741,988 16,932,960 53,204,514 14,322,64t 1,256,972 7,820,638 N/A t ,51s,156 4t6,739 2s,392,146 s 78,596,660 $ 8,707,8s8 2,656,847 493,955 r,807,s56 7,53s,935 11,220,622 20,82',7,330 s3,250,103 17,318,92t r,236,384 8,282,856 N/A 2,068,301 91,378 28,997,840 s 82,247,943 St. Lucie County, Florida Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) 200'1 20092008 2010 Net @xpense)/Revenue Govemmental Activities Business-Type Activities Total Primary Government net expense General Revenues and Other Change in Net Position Governmental activities: Taxes Property Taxes, Levied for General Purposes Property Taxes, Levied for Debt Service Sales taxes Franchise fees State shared revenues Investment income Miscellaneous Transfers Total Governmental Activities Business-Type Activities: Investment income Miscellaneous Transfers Total Business-Type Activities Total Primary Government Change in Net Position Govemmental Activities Business-Type Activities Total Primary Government Change in Net Position $ 90,716,643 $ 78,2s3,7t2(r,688,971) (1,63t,29t) $ 89,027,672 $ 76,622,42t s 42,724,809 $ 11,269,898s,860,748 r4r,7 62 $ 48,58s,557 $ 11,411,660 $ (t49,72s,42s) (s,721 ,910) $ (1ss,447,33s) $ (149,59s,r65) (6,494,266) s (1s6,089,43r) $ (r44,r17,932) (3,s 1s,s88) $ (147,633,s20) $ (r43,41s,77s) (2,4t0,'710) $ (14s,826,485) $ 182,683,813 2,305,99r 1,566,034 5,591,827 19,607,348 |,97r,202 r1,677 ,tt4 (e6t,26r) 240,442,068 2,084,544 987,134 96r,26r 4,032,939s 244,475,007 $ 178,834,085 3,074,8 15 1,572,275 5,434,244 t8,309,t62 9,300,268 t2,206,83r (882,803) 227,848,877 I,005,541 2,9'74,631 882,803 4,862,975 $ 232,'711,852 $ r47,915,327 r,262,653 2,1t4,215 5,488,297 17,313,499 s,8s I,706 7,92t,087 (t,024,043) 186,842,74r 619,3 81 701,736 r,024,043 2,345,160 $ 189,187,901 $ 119,485,011 1,0 r 5,405 2,053,2r3 5,145,1 3 1 14,875,936 '7,t25,340 6,0'16,644 (1,09r,007) 154,685,673 902,793 558,672 1,09r,007 2,552,4'72 $ 157,238,145 176 Schedule 2 201 I 2012 2013 (2)2014 2015 20r6 $ (160,5s5,820) $ (160,691,881) (9,786,983) 2,131,730 $ (r70,342,803) $ (1s8,560,151) s (147,611,164) $ (r63,894,376) (2,103,183) (1,028,260) $ (149,714,347) S (164,922,636\ s (173,7'78,326) (1,664,934) $ (17s,443,260) $ (182,066,600) (r,s3 8,809) $ (183,605,409) $ I 18,930,802 9t3,744 2,396,83s 5,041,2'70 2r,744,t29 3,203,3s9 6,946,70t 8,672,785 t67,849,62s 436,61't 387,031 (8,672,78s) (7,849,t37) $ 160,000,488 $ t13,449,923 2t9,556 2,648,898 4,913,92s 21,874,447 4,22'7,957 6,328,011 201 ,500 153,864,217 622,t26 1,285,800 (20 1,500) t,706,426 $ 1s5,570,643 $ t12,622,033 2t6,583 2,577,525 4,828,039 rr,t90,464 472,t22 6,455,599 213,000 I 38,575,365 68,051 1,60t,473 (213,000) ),,4s6,524 $ 140,03r,889 $ 122,546,89s 230,022 3,039,203 4,974,923 16,723,847 1,558,294 7,432,358 344,891 156,850,433 268,820 406,669 (344,89 I ) 330,598 $ 157,1 8 1,03 I $ t2s,44t,070 235,548 3,424,'162 5,085,1 53 18,286,865 3,279,721 8,228,573 34t,233 t64,322,925 488,034 484,323 (341,233) 631,124 $ r64,9s4,049 $ 13s,745,043 236,359 3,652,354 4,876,430 19,491,9t7 2,560,840 10,227,653 610,694 r77,40t,290 363,s07 377,500 (610,694) 130,313 $ 177,s3 1,603 $ 7,293,805 $ (6,827,664) (t7,636,t20) 3,838,156 $ (r0,342,315) $ (2,989,508) $ (7,043,943) $ (9,4ss,40r)(6e't,662) (1,033,810) $ (7,741,60s) $ (10,48e,21 l) $ (9,03s,799) (646,6s9) $ (9,682,458) $ (4,66s,310) (1,408,496) $ (6,073,806) St. Lucie County, Florida Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2007 2008 2009 (1) 2010 General Fund Reserved Unreserved Total General Fund All Other Governmental Funds Reserved Unreserved, reported in: Designated for specific purposes Special Revenue Funds Debt Service Funds Capital Project Funds Total All Other Governmental Funds Total Governmental Funds General Fund Nonspendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Nonspendable Restricted Committed Assigned Unassigned Total AII Other Governmental F unds Total Governmental Funds $ 4,28s,030 $ 5,062,045 s7,99s,353 84,743,t4s 62,280,383 89,805,190 N/A N/A N/A N/A N/A N/A 86,533, l 70 858,361 57,s61,499 (2s0,1 4 I ) 144,702,889 78,668,669 932,430 6t,002,2r7 (199,20 1) 146,404,1,t5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A s 206,983,272 $ 236,209,305 N/A N/A s,274,420 r 8,039,1 I I 3'.7,908,24r 45,t'70,714 106,392,486 38 1,845 l 19,703,082 14,578,5 13 (967,746) t33,695,694 $ 240,088,180 $ 8,039,227 I 8,507,370 66,98r,827 1 99,865 93,728,289 750,416 103,558,1 l2 3 1,053,837 (673,530) 134,688,835 $ 228,41'1,124 Notes: (1) The County implemented GASB Statement 54 (The New Fund Balance) in FY 2009 Schedule 3 20tr 20t2 2015 2016 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 20t3 N/A N/A 2014 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AN/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A $ 6,893,317 99,69r t5,696,427 53,230,218 15,1 58,3 71 91,078,024 440,592 99,072,434 26,663,s78 (309,673) 125,866,93 I $ 6,849,s25 330,802 46,941,637 20,971,9ss 7s,093,919 490,'195 101,I 80,610 22,438,762 (t,323,932) 122,'t86,23s $ 6,692,9s6 85,000 34,1 90,835 25,073,'t95 66,042,586 840,s88 98,999,661 tt,26s,465 2,190 (107,1 80) rr1,000,724 $ 6,463,s14 32,5 I 9,000 1 8,748,635 57,73t,t49 940,694 r22,794,044 t0,466,190 $ 6,s63,346 15,305 39,073,863 7,296,9s0 s2,949,464 94r,147 t18,684,477 1r,042,531 I 30,668,155 $ 6,179,210 17,270 46,000,000 4,231,s80 56,428,060 789,687 119,743,r77 lt,347,243 13 1,880,107134,200,928 $ 2t6,944,9ss $ 197,880,1s4 $ 177,043,310 S 191,932,077 $ 183,617,619 $ 188,308,167 '179 St. Lucie County, Florida Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) $ 193,583,292 256,134 4,564,374 13,308,03 I 43,780 59,667,926 20,955,1 I 8 4,t49,254 tt,971,202 3,83 r,876 rr,267,ts0 323,598,137 42,91t,984 73,1 61,s80 7,716,324 24,650,454 8,015,255 13,094,573 I 8,161,566 t8,047,417 69,438,799 7,138,3r3 5,878,550 58 1,880 289,396,695 34,201,442 76,844,321 (78,3 12,355) 507,366 40,579,37'1 804,856 $ 189,518,405 204,456 4,r24,277 8,968,297 49,r78 59,949,846 18,193,222 3,817,596 9,334,070 2,447,306 rt,2tr,973 307,8 1 8,626 4s,076,s49 '79,924,687 5,914,003 20,367,74t 7,505,642 12,495,062 r9,555,121 1 8,673,806 60,483,258 8,271,407 7,0 15,87 r 50, I 02 285,333,249 22,485,377 76,055,402 (76,938,20s) 1,400,000 322,291 6,060,360 12,485,000 (r2,243,422) 7,t4t,426 $ 29,626,803 $ 156,982,368 i48,201 4,390,38 1 3,941,083 1,07 5,654 57,487,887 I 7,510,145 3, r40,560 5,85 1,706 10, I 85,576 t0,s23,0t2 271,236,573 43,621,'732 19,736,822 6,8s6,456 22,96t,0t5 1,211,448 14,687,243 1 7,088,853 I 8,028,834 47,596,383 14,583,046 7,70s,88s 90,393 280,174,110 (8,937,s37) 74,071,888 (74,09s,931) 1,032,468 9, 181 ,468 2010 $ 127,979,788 r40,023 4,068,691 5,320,499 1,086,058 47,888,602 t2,770,777 r,726,r84 6,357,503 3,528,013 8,801,787 219,667,925 40,245,337 80,29 I ,804 5,745,479 r 5,91 8,3 89 5,658,948 14,476,809 16,155,246 9,316,039 28,878,1 53 12,981 ,712 6,924,93t 96,8t7 236,69s,664 (t'7,027,739) s9,860,674 (60,95 1,681) 332,500 '7,750 6,037,000 2007 2008 Revenues Taxes Licenses and permits Franchise fees Impact fees Special assessments Intergovernmental Charges for service Fines and forfeitures lnvestment income Contribution from property owners Miscellaneous Total Revenues Expenditures General govemment Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court-related Capital outlay Debt Service: Principal retirement Interest Other Total Expenditures Excess ofRevenues Over (Under) Expenditures Other Financing Sources (Uses) Transfers in Transfers out Capital lease proceeds Proceeds from sale ofcapital assets Issuance of long-tenn debt Issuance ofrefunding bonds/note - principal Issuance of refunding bonds/note - premium Premium on long-term debt issued Payment to refunded bond escrow agent Payrnent to refund line of credit Total Other Financing Sources Net Change in Fund Balances Debt Service as a Percentage of Noncapital Expenditures 40,423,565 $ 74,625,007 10,189,893 5,286,243 s r,2s2,3s6 $ (11,741,496) 6 80%6.19o/"9.58y"9.5804 Schedule 4 2011 2012 2013 2014 2015 20t6 $ 127,432,07s 137,244 4,0t8,52t 6,269,0'72 r,662,089 43,69t,947 l 2,903,8 19 1,410,011 2,790,273 3,438,930 8,866,992 212,620,973 39,043,253 76,629,952 6,340,s89 n,s58,437 8,853, l 58 '7,869,397 15,452,465 I 6,1 68,803 24,183,348 10,'791,45r 6,603,340 174,307 229,668,500 (t'7,041,s27) '73,655,102 (7 1,1 8 1,537) 3,000,000 4,68s,000 (4,7 t9,767) 5,438,798 $ (l 1,608,729) $ r21,196,187 184,064 3,923,6t5 2,947,t01 1,763,0t6 48,272,899 13,276,780 1,440,389 3,7 67 ,497 1,08s,797 8,494,'126 2063s2,071 37,526,438 71 ,97 5,t35 4,551,777 19,105,458 10,7 r 3,840 13,1 13,546 14,12s,9s7 15,956,719 27,858,3 10 19,980,413 5,981,782 52,588 240,942,023 (34,s89,9s2) 63,826,069 (s9,t27,4tt) t78,325 257,t36 I 0,330,000 $ r20,293,24s 149,013 3,845,968 9,tr7,34r 1,893,355 43,947,867 i 6,3s5,682 2,022,187 420,903 5,662,0s0 7,994,049 2tr,101,660 37,048,451 73,688,2ss 10,284,179 t8,164,647 8,571,258 11,212,739 I 4,658,608 1s,871,553 27,845,598 59,986,084 4,765,904 2,035,344 284,132,620 (72,430,960) s8,s22,091 (58,309,09 l) 1t5,232 s6,690,000 5,204,242 (10,666,732) $ 130,6s4,898 145,101 4,047,263 2,386,609 1,830,1 37 4t,501,566 20,0 l 0,805 3,381, r 25 1,403,'136 r,092,t98 8,397,988 2t4,85t,426 37,853,765 7'.7,006,903 6,780,010 15,861,230 8,012,462 9,5s6,810 15,355,532 r6,862,823 23,167,896 9,730,297 4,91s,883 21,214 225,184,825 (l 0,333,399) 6s,343,646 (64,996,894) 8s, l 54 $ t34,049,428 t61,454 4,17 5,910 5,65 I ,9 l0 1,680,237 34,971,691 17,994,376 3,464,666 3,039,035 974,380 8,913,302 2ts,076,39s 40,91s,97'7 82,056,8 19 5,234,383 17,805,459 5,670,134 9,874,89 I 1 s,1 60,363 16,783,994 24,627,r02 20,380,913 4,2r0,s63 s88,779 243,309,977 (28,233,s82) 69,077,s8s (68,736,3s2) I,090,042 880,680 7,029,690 21,885,000 (t t,34s,782) l 9,880,863 $ (8,352,719) $ t44,840,462 r82,745 4,024,278 7,102,056 1,7 13,1 80 32,299,138 1 8,1 85,270 2,898,407 2,404,957 r,86s,010 I 1,360,4s9 226,875,962 43,220,64r 86,049,441 5,014,866 16,'7 rt,3s1 6,836,373 10,54'7,965 15,84s,661 17,216,606 22,213,491 8,370,538 4,033,323 97,879 236,278,147 (e,402,t8s) 66,207,984 (6s,597,290) 9,305,379 804,512 3,505,468 1s,464,119 $ (19,125,833) 51,555,742 $ (20,87s,218) 43t,906 $ (9,901,493) 14,226,053 $ 4,823,868 7.250h 5 80%8.47%12.18%2s.21% 181 11.25% St. Lucie County, Florida Tax Revenues By Source, Governmental Funds Last Ten Fiscal Years (modffied accrual basis of accounting) Schedule 5 Fiscal Year Properfy Taxes Tourist Development Tax Fuel Taxes Other Taxes Total 2008 184,989,804 181,120,404 149,177,980 120,500,416 119,844,546 113,669,479 112,838,616 122,776,9r7 125,676,618 135,981,402 2,501,499 2,360,774 2,077,270 2,017,003 2,396,83s 2,64g,ggg 2,577,525 3,039,203 3,424,762 3,6s2,3s4 5,064,535 4,s54,203 4,532,318 4,291,s42 4,077,571 3,904,221 3,81 1,548 3,927,996 3,954,894 4,271,932 1,027,453 1,483,024 t, I 94,800 1,170,821 l, I 13,123 1,073,589 l,06s,s56 1,010,882 993,ts4 934,774 193,583,291 189,518,405 t56,982,368 127,979,188 121 ,432,075 121,796,187 t20,293,245 r30,654,898 t34,049,428 144.840,462 2009 20t0 201 I 20t2 2013 2014 20t5 20t6 Source: St. Lucie County, Clerk of the Circuit Court, Finance Departrnent 182 THIS PAGE INTENTIONALLY LEFT BLANK 183 St. Lucie County, Florida Assessed Valuation and Estimated Actual Values of Taxable Properly Last Ten Fiscal Years Fiscal Year Real Property (1)Personal Property (2) Assessed Value Estimated Actual Value Assessed Value Estimated Actual Value 2007 2008 2009 2010 20tt 20t2 2013 2014 20t5 2016 35,298,381,073 $ 35,921,342,207 30,6s6,94s,464 23,053,499,012 20,280,8t7,028 19,173,039,636 18,590,958,583 18,278,465,727 19,r29,945,370 20,798,536,263 44,122,976,341 s 44,901,677,7s9 3 8,321,181,830 28,816,873,76s 25,35t,021,285 23,966,299,545 23,238,698,229 22,848,082,t59 23,912,43r,713 2s,998,170,329 3,003,465,947 $ 2,900,861,47 5 3,061,594,950 3,278,060,429 3,228,764,597 3,293,34r,552 3,616,707,900 4,657,503,480 4,705,r84,3t2 4,764,247,s34 3,003,465,947 2,900,867,47 s 3,061,594,950 3,278,060,429 3,228,164,597 3,293,341,552 3,616,707,900 4,657,503,480 4,70s,184,3t2 4,764,247,s34 Notes:(l) (2) (3) The breakdown of commercial and non-commercial real property assessed value is not available. Total assessed value is based on approximately 80 percent ofestimated actual value. Centrally assessed value represents value ofproperty that is assessed by the State ofFlorida rather than by the Property Appraiser when the property is located in more than one county. Centrally assessed property is primarily railroad property. 184 Schedule 6 (3) Centrally Assessed Value Exemptions ReaUPersonal Property $ 13,923,188,784 13,370,554,702 12,2t8,435,134 9,340,839,61I 8,377,431,327 7,893,166,31 I 1,899,097,097 7,793,r83,273 8,252,543,413 9,346,234,6s6 38,336,598,574 $ 38,864,635,859 33,777,284,915 26,311,942,906 23,543,369,9t9 22,501,551,897 22,238,606,523 22,970,680,525 23,880,397,036 25,609,842,916 47,126,442,288 47,802,545,234 41,382,776,780 32,094,934,194 28,519,785,882 27,259,641,097 26,8ss,406,t29 27,505,585,639 28,617,616,025 30,762,417,863 Total Assessed Value Total Estimated Value Total Direct Tax Rate 34,751,554 42,426,177 58,744,561 40,383,465 33,788,294 35,170,709 30,940,040 34,711,318 45,267,354 47,0s9,119 6.9712 6.4612 6.46t2 6.4612 7.1367 7.188r 7.1881 7.3910 7.3910 7.7310 St. Lucie County, Florida Direct and Overlapping Property Tax Rates (rate per $1,000 ofassessed value) Last Ten Fiscal Years 2007 2008 2009 2010 County direct rates General Fund Fine & Forfeiture Other county-wide Total direct rate 4.2734 4.2299 3.6t73 2.7694 2.3778 1.9352 2.5478 3.3957 0.3200 0.296t 0.2961 0.2961 6.9712 6.4612 6.46t2 6.4612 18.3891 17.2875 t7.45t8 17.8442 1.631 1 1.5993 1.5993 1.5993 County-wide debt maximum millage 0.0977 0.0920 0.0613 0.0613 Total County-wide district school board 7.7370 7.4900 7.6850 7.9760 Total Other taxing authorities Total County-wide rate Unincorporated Area 3.5832 3.2443 3.2443 3.34s7 Municipalities City of Fort Pierce 5.9823 5.4674 5.4674 5.4674 City of Port St. Lucie 4.4399 4.2172 4.2172 4.6866 Town of St. Lucie Village 1.5000 1.2500 1.3400 1.6100 Source: St Lucie County, Office of Management and Budget Schedule 7 20tl 2012 2013 20t4 20t5 2016 2.8707 2.9221 3.9699 3.9699 0.2961 0.2961 7 .1367 7. 1 881 0.0613 0.0154 8.1770 7.8780 2.922r 3.9699 0.296r 7.1881 0.0154 7.7710 3.6017 2.9221 3.9699 0.4990 3.7764 3.2699 0.3447 4.t273 3.2699 0.3338 3.6296 3.6080 19.0046 18.6895 18.5762 7.39t0 7.39t0 7.7310 0.0154 0.0154 0.0154 7.2570 7.2410 7.2830 3.9327 3.89s2 3.8636 18.5961 t8.5426 18.8930 1.7796 5.4674 5.4723 1.6700 1.6562 5.4674 5.7289 1.7300 1.6562 5.7131 5.6289 r.7200 1.6562 6.6050 5.6289 r.7200 1.6562 6.5786 5.6289 1.7500 t.6562 6.9000 6.6289 1.8500 187 St. Lucie County, Florida Principal Property Taxpayers Current Year and Nine Years Ago Schedule 8 2016 2007 Taxoaver Total Assessed Valuation Percent of Total County Assessed Valuation Total Assessed Valuation Percent of Total County Assessed Valuation Florida Power & Light Corp. $ Tropicana Manufacturing Co. lnc. Wynne Building Corp. Wal-Mart Stores East LP Bellsouth Telecommunications HCA./Lawnwood Medical Center Inc. Florida Gas Transmission Co. LLC KRG Port St Lucie Landing LLC Sandpiper Resort Properties Inc. Florida East Coast Railway Ginn-La St Lucie Ltd, LLLP Wal-Mart Stores East lnc St Lucie Land Ltd. 2,687,324,996 t25,828,19t 1 1 9,965,780 83,932,48s 69,845,695 4s,367930 44,875,000 39,956,1 50 37,848,610 37,233,99s t0.49% $ 0.49% 0.47% 033Yo 0.2704 0.18% 0.t8% 0.l6Yo 0.t504 0.l5Yo t,497,827,258 t60,943,936 1 36,200,598 68,s30,789 106,000,001 58,550,000 66,09r,572 72,275,800 55,935,400 60,041,300 $ 2,282,396,654 3.91% 0.42Yo 0.36% 0.t8% 0.28% 0.15% 0.t7% 0.t9yo 0.15o/o 0.16Y" 5.9'1y, I 2 3 4 5 6 7 8 9 10 I 2 J 6 4 9 7 5 10 8 Total Principal Property Taxpayers $ 3,292,1'78,832 Total County Assessed Valuation S 25,609,842,916 Source: St. Lucie County Tax Collector Office and Property Appraiser $ 38,336,598,574 188 St. Lucie County, Florida Properly Tax Levies and Collections Last Ten Fiscal Years Schedule 9 Fiscal Year Ending Tax Roll Year (r) Total Tax Levy (2) Percentage of Current Tax Current Tax Collections to Collections Tax Lew (3) Delinquent Tax Collections Total Tax Percentage of Total Tax Collections to Collections Total Tax Lew 2007 2008 2009 2010 201 I 2012 2013 2014 2015 2016 2006 s 195,293,400 $ 2007 190,184,760 2008 160,47'.1,66'.7 2009 129,397,667 2010 127,',714,008 2011 123,r94,32s 20t2 121,326,2t4 2013 131,315,251 2014 1r5,3s6,839 20ls 146,099,632 187,777,}ts r82,764,255 153,r31,841 t24,013,907 t22,7 53,725 1 1 7,1 78,059 r 16,147,851 t26,409,8',15 t30,274,123 r40,581,398 96.15o/o 96.10o/o 9s.42% 95.840/0 96.12o/o 95.12% 95.73% 96.26% 96.24% 96.22o/o 4,663 $ 321,783 335, r 88 86,720 t22,s7r 256,2s8 t99,245 l 06,870 182,194 s2.463 1 8 7,78 1,678 183,086,038 153,467,029 124,100,627 122,876,296 117,434,317 r16,347,096 126,5t6,745 I 30,456,3 I 7 140,633,86r 96.ls%o 96.27o/o 9s.63% 95.91% 96.21o/o 95.32% 95.900/0 96.35o/o 96.38o/o 96.26% Source: St. Lucie Couty Tax Collector and tlre Clerk of the Circuit Cout Notes: (1)TotaltaxleryamountsreflectpropeftytaxescollectedonbehalfofSt.LucieCountyonly. Thisamountrepresentsthe original levy plus additions, penalties, errors, and other adjustments. (2) Curenttax collections represents oDly the cash collected. All taxes are due andpayable on November 1, ofeach year or as soon thereafter as the assessment roll is certified and delivered to the Tax Collector. All unpaid taxes become delinquent on April 1 following the year in which they are assessed. Discounts are allowed for early palment at the rateof4o/ointhemonthofNovembet,3%inDecember,2Yoinlantnryandl% inFebruary. Thetaxespaidin March are not discomted. (3) The detinquent tax collections include the collections for delinquent tangible personal property taxes md County tax certificates. 189 St. Lucie County, tr'lorida Computation of Legal Debt Margin September 30,2016 Schedule 10 The Constitution of the State of Florida, Florida Statute 200. I 8 I , and St. Lucie County set no legal debt limit. THIS PAGE INTENTIONALLY LEFT BLANK 19'l St. Lucie County, Florida Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmentel Activities Fiscal Year General Obligation Bonds (l) Revenue Bonds Revenue Notes Special Assessment Bonds Capital Leases 2007 $ 7,74s,000 $ 119,813,493 $ 31,493,730 2008 6,275,000 tr4,728,232 32,165,592 2009 4,74s,000 t09,496,942 34,s2s,836 2010 3,150,000 t04,09't,524 30,070,252 2011 r,225,000 99,114,801 29,896,255 2012 1,010,000 93,953,568 2'1,540,942 2013 785,000 90,235,689 24,611,853 20t4 545,000 84,459,535 22,038,154 20t5 290,000 64,753,t63 4r,026,1t5 2016 20,000 61,066,715 40,35'1,'151 Notes: (1) Revenue Bonds are net ofbondpremiums/discounts. $ 5,403,303 $ 9,396,306 7,723,908 12,501,087 12,217,819 10,6M,078 9,024,837 7,865,000 6,739,690 131,443 1,282,109 2,05 1,890 t,956,528 1,4s2,948 1,189,542 759,499 4r9,792 t,110,962 6,588,055 10,014,798 (2) Information comes from State of Florida Office of Economic and Demographic Research (http://www.edr.state.fl.us/Content/area-profiles/county/stlucie.pdf). See Schedule 15. Detail regarding the County's outstanding debt can be found in the notes to the financial statements. N/A - Information not available Schedule 11 Business - Tvpe Activities (t) Revenue Bonds Revenue Notes Capital Leases Total Primary Government A\ Outstanding Percentage Debt ofPersonal Per Income Caoita $ 21,880,497 $ 20,684,085 20,05t,847 t9,66s,7'7s r 9,259,s5 8 18,833,400 t8,377,325 21,809,889 21,323,901 20,827,913 94,033 94,033 68,002 38,483 31,218 21,369 r0,624 4,362 r,493 t86,467,466 t84,531,324 r78,720,674 r 7l,556,568 163,245,007 t53,1'74,375 r43,795,696 137,r37,370 135,243,831 138,875,232 2.4s% $ 233% 2.27Yo 2.07% t.89% t.70% 1.61% t.38% t.27% NiA 686 667 655 6r8 584 546 5ll 485 470 474 193 St. Lucie County, Florida Ratios of Net General Bonded Debt Last Ten Fiscal Years Schedule 12 a) Total Fiscel Yeer Endins (l) Pooulation Tsreble Velue (a) Gross General Bonded Debt Resfricted Resources Ratio of Net NetGeneral General Bonded Bonded Net Genersl Debt to Totel Debt Per Bonded Debt Taxable Value Carita 200't 2008 2009 2010 20r l 2012 20t3 20t4 2015 20t6 Sources: 7,745,000 $ 6,275,000 4,745,000 3,150,000 1,225,000 1,0 r 0,000 785,000 545,000 290,000 20,000 3,531,522 $ 2,s8r,052 3,489,1t2 3,0r4,209 453,311 394,869 33 I,328 279,44t 23r,142 20,000 4,213,478 3,693,948 1,255,288 135,791 7'11,629 615,131 453,672 265,559 s8,658 0.0002 $ 0.0001 0.0001 0.0000 0.0001 0.0000 0.0000 0.0000 0.0000 0.0000 27t,96r $ 24,412,809,790 $ 276,585 25,554,081,157 272,864 21,558,849,841 277,789 17,031,103,29s 279,696 15,165,938,592 280,355 14,608,385,586 28r,l5l 14,319,s09,426 282,821 1s,177,497,2s2 287,749 15,627,853,623 292,826 16,261,608,260 l5 l3 5 0 3 2 ) I 0 0 (l) Office of Economic & Demogra.phic Research - (http://www.e&.state.fl.us/Content/area-profi1es/county/stlucie.pdf) (2) St. LucieCounty, PropertyAppraiser. (a) There were no issuance premiums/discounts associated with the general bonded debt. 194 St. Lucie County, f,'lorida Direct and Overlapping Govemmental Activities Debt September 30,2016 Schedule 13 Government Unil Gross Debt Estimated Percentage Estimated Share of Direct and Overlappins DebtOutstanding Applicable(l) City of Fort Pierce Revenue Bonds City of Port St. Lucie Special Assessment District Bonds Sales Tax Bonds Public Service Tax Bonds Certifi cate of Participations CRA Tax Increment Bonds General Obligation Bonds Revenue Bonds St. Lucie County School Board Certificates of Parti cipation Sales Tax Revenue Bonds State School Bonds Subtotal, overlapping debt St. Lucie County Direct Debt (2) Total direct and overlapping debt: 70,233,369 1 87, l 75,000 12,670,000 I 9,775,000 32,360,000 38,260,000 1 08,560,000 55,8 10,000 r 90, l 29,000 79,755,000 8 13,000 70,233,369 l 87, I 75,000 12,670,000 19,775,000 32,360,000 38,260,000 r 08,560,000 55,8 10,000 r 90, I 29,000 79,75s,000 8 13,000 r00% 100% 100y, t00% t00% r00% l00o/o t00% t0004 t00% t00% 795,540,369 r r8,033,789 $ 913,574,158 Source: Outstanding debt data for the overlapping governments is provided by the applicable government. Notes: Govemment units that are included in this schedule are those whose geographic boundaries overlap, at least in part, with the boundaries ofthe County. This schedule estimates the portion ofthe overlapping govemment's outstanding debt that is bome by the residents and businesses ofSt. Lucie County. This process recognizes that, when considering the County's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore, responsible for repaying the debt of each overlapping government. (l) These percentages are estimated using assessed values oftaxable property less homestead exemptions and other adjustments (taxable value). Applicable percentages were estimated by determining the portion ofanother governmental units taxable value fliat is within the County's boundaries and dividing it by each unit's total taxable value. (2) The St. Lucie County direct debt amount includes bond premiums. St. Lucie County, Florida Pledged-Revenue Coverage Last Ten Fiscal Years Utilin Bonds (1) Less:Annual Debt Service Fiscal Gross Operating Available Year Revenues Expenses Revenue Principal Interest Coverage 2007 s 4,279,233 S 3,363,090 S 916,143 S 34s,000 S s88,724 0.98 2008 4,ss2,96s 3,282,219 1,270,',146 360,000 s72,610 1.36 2009 4,ss9,s74 3,340,929 1,2t8,645 380,000 884,140 0.96 2010 5,046,710 3,t71,381 1,8'75,329 395,000 990,254 1.35 2011 5,522,045 3,093,679 2,428,366 415,000 873,978 1.88 2012 s,697,46s 3,190,460 2,s07,005 43s,000 8s3,884 1.95 2013 s,4s6,262 3,306,083 2,ts0,119 46s,000 830,849 1.66 2014 5,747,198 3,568,929 2,r',18,269 450,000 780,',742 1 .77 2015 5,971,548 3,823,848 2,141,700 360,000 963,550 t.62 2016 6,Os7,402 4,23t,930 1,82s,472 370,000 956,350 1.38 Source: St. Lucie County, Clerk ofthe Circuit Court, Finance Department Notes: (1) The County has agreed on the Utiliy bonds to establish and maintain rates that will provide 1 l0% ofthe debt service requirement and 100% ofthe operating expenses, excluding the reserve accourt credit facility costs, and the renewal ald replacement fund during the year. Therefore the numbers for Utility gross revenues and operating expenses do not include numbers pertaining to those funds and accomts. Gross revenues includes charges for services, rniscellaneous revenue and interest revenue. Operating expenses do not include interest, depreciation, or amortization expenses. (2) The County issued Special Assessment Bonds for South Hutchison Island in previous years but reclassified the bonds as a county debt in FY 2009. The SHI bond and revenue collections are not presented in the schedule from FY 2005 through FY 2008. (3) The Special Assessment Collections section reflects revenue for current year collections. The decline in revenue for FY 2010 and FY 201 I is due to prepayments ofassessments in prior fiscal years. (4) The Public lnprovement Revenue Bonds were refunded in FY 2004. The principal payments in prior years were structured to be higher in tbe years the County had interlocal agreements to pay on the bonds. The interlocals ended in FY 2010 and the principal payments were stmctured to be lower for FY 201 I and forward. The Public Improvement Revenue Bond were refunded in FY 2015 by the Capital Improvement Refunding Bond Series 2014. (5) The Sales Tax Refunding Revenue Bonds Series 2003 and Series 2005 were refunded by the Sales Tax Refunding Revenue Bonds Series 2013A and 2013B in FY 2013. Details regarding the County's outstanding debt can be found in the notes to the financial statements. Net 196 Schedule 14 Soecial Assessment Bonds (2) Special Annual Debt Service _ Assessment Collections (3) Principal Interest Coverage 00122,9'11 832,084 2,336,403 t,928,394 1,875,973 1,805,904 1,668,684 1,6 l 5,586 1,399,330 |,370,156 1,900,236 243,997 5,250,020 2,263,890 283,268 1,613,74\ 1,579,241 I , I 59,837 I , I 55,000 337,t04 5q 51q 30,s0 I t,433,05 8 512,010 557,474 521,493 47 5,651 390,7 I 5 337,415 289,206 3.03 035 0.69 223 0.85 0.81 104 094 2t9 197 St. Lucie County, Florida Pledged-Revenue Coverage (Continued) Last Ten Fiscal Years Schedule 14 Public ImprovementRevenue Bonds (4) Sales Tax Relanding Revenae Bonds (5) Annual Debt Service Annuel Deht Service Fiscal Fines & SalesYear Forfeitures Principal Interest Coverage Tax Principal Interest Coverage 3,130,280 200'1 $ 409,637 $ 720,000 $ 238,150 0.43 S 8,091,600 $ 1,7s0,000 s 1.66 2008 356,189 740,000 216,2s0 0.37 7,30'1,343 1,790,000 2009 330,928 765,000 t93,6'7s 0.35 6,49'1,123 1,840,000 2010 361,431 785,000 166,906 0.38 6,256,288 1,895,000 20rt 306,950 220,000 148,313 0.83 6,516,396 1,95s,000 2012 338,281 230,000 r4t,4r9 0.91 6,648,623 2,030,000 2013 324,809 230,000 133,944 0.89 6,969,385 s60,000 2014 337,150 240,000 t25,863 0.92 7,596,586 2,180,000 2015 N/A N/A N/A N/A 8,12r,225 2,245,000 2016 N/A N/A N/A N/A 7,802,490 2,330.000 3,2t2,519 3,164,056 3,1 08,1 06 3,046,13 I 2,973,619 3,218,516 2,552,250 2,486,850 2,400,800 1.25 146 130 130 133 182 165 THIS PAGE INTENTIONALLY LEFT BLANK 199 St. Lucie County, Florida Demographic and Economic Statistics Last Ten Years Schedule 15 Fiscal Year (1) Population (2) Total Personal Income (3) School Enrollment (4) Unemployment Rate (2) Per Capita Income 2007 2008 2009 2010 201t 2012 20t3 20t4 20r5 2016 Sources: 2'.1r,961 276,585 272,864 27',7,789 279,696 280,355 281,151 282,821 287,749 292,826 7,623,686,000 7,928,9s9,000 7,868,83 1,000 8,269,84r,000 8,626,570,000 9,0r0,473,000 8,943,912,000 9,932,383,000 r 0,636,320,000 N/A 30,112 3 1 ,165 29,950 29,865 3t,644 32,330 32,832 34,t29 35,625 N/A 40,127 39,963 4r,619 40,374 38,082 40,807 40,965 40,173 41,442 41,396 5.8o/o 8.9% 13.4% 13.8Yo l2.6Yo 11.0Y. r0.0% 8.0% 6.2% s.6% Notes: (1) State of Florida Office of Economic and Demographic Research (http://www.edr.state.fl.us/Content/area-profiles/county/stlucie.pdf). (2) State of Florida OfIice of Economic and Demographic Research (http://www.edr.state.fl.us/Content/area-profiles/county/stlucie.pdf). (3) St. Lucie County School Board (4) Labor Market Information (http://www.floridajobs.orgllabor-market-information) N/A - Information not available St. Lucie County, Florida Principal Employers Current Year and Nine Years Ago Schedule 16 2016 Q\2007 (2\ Employer Number of Emplovees Percentage of Total County Rank Emplovment Number of Percentage ofTotal County 0.89o/o 0.92o/. t3.7t% St. Lucie County School Board Indian River State College Wal-Mart Retail Stores & Distribution Center HCA./Lawnwood & St. Lucie Medical Center Inc. St. Lucie County Govemment Publix City of Port St. Lucie Convey Health Solutions Liberty Medical Supply Martin Health System QVC TD Bank (formerly Riverside National) Total: Total County Employees: 5,4t6 2,400 ) )\7 2,r89 1,686 r,466 1,015 9s0 920 850 I 2 3 4.29% r.90% r.78% t.73% 1.34% t.L6% 0.80% 0.75% 0.73% 0.67% 15.t5% 1,66s 4 r,525 5 2,753 1 r,037 8 2,068 2 t,2t8 7 1,231 6 Employees Rank Employment r.50% t.37% 2.47% 0.93o/o 1.86% 1.09% l.llo/o t,752 3 1.5'7% 4 5 6 7 8 9 l0 993 1,029 t5,271 rtr,344 (r) 10 9 19,145 126,242 (t) Source: (1) I-abor Market Info (http://www.floridajobs.org/labor-market-information) Notes: (2) St. Lucie County, Florida - Economic Development Council (most recent data available) St. Lucie County Govemment includes the Board of County Commissioners, Clerk of the Circuit Court, Property Appraiser, Tax Collector, Sheriff and Supewisor of Elections. 201 St. Lucie County, tr'lorida Full-Time Equivalent County Govemment Employees by Function/Program [,ast Ten Fiscal Years Generel Governmenl 200'7 2008 2009 z0t1 2012 t0 l0 99 55 85.80 81.80 17 15 41 40 31 34.45 65 65 t7 17 7t 86 2010 Boad of Couty Comissioners Couoty Attomey Administration FinmciaVAdministmtive Seruice Plming & Developoent Other Clerk oftbe Circuit Court Property Appniser Superuisor of Elections Tu Collector Public Safety Code Compliance Criminal Jutice Sheriff{orections SheriFCourt Sewices Sheriff-[:w Enforcement Other Physicel Environment Solid Waste Utilities-water md sewer Conseroation & Resouce Managemef,l Environmental Resowces Erosion Transportation Public Works Administration Road md Bridges County Eugineer Airport Port Economic Environment Comprehensive Plmning Housing Vetems Human Services Commity Seroices Mosquito Control C ulture/Recreatio n Comtal Mmagement Libroies Paks Recreation Department Sports Complex GolfCourse Cultural Affaim Fairgrouds Touism ed Venues Other Court Relat€d Clerk ofthe Circuit Court Totsl: Sources: l0 ll 9 1t9.76 70.50 57 15 19 80 75 4 262 JJ 337 92 53 10.33 26.50 22.t7 2 5 8l 28 10.50 N/A 5 N/A r0.37 t6 20 3 1.90 N/A 7't 52 85.02 39 35 14.88 25 16 50 I 1.50 N/A ,] 153 2.018.00 10 l1 8 112.76 27 64.50 59 /J l9 80 43 ll 251 37 250 93 48 l0 26.50 22.t',] 2 5 83 26 9.50 N/A l0 N/A 815 16.20 32.t4 N/A 77.52 78.76 32.85 14.88 25 9 7.83 N/A 2r.'16 152 1.869.52 l0 ll 7 t12.26 27 62.50 42 59 l8 16 43 l3 264 34 238 92 48 l0 25.50 22 2 5 83 26 9.50 N/A 8.50 N/A 8.15 16.20 32.64 N/A 73.52 83.59 32.85 14.88 25 9 2 N/A 22.',l6 14',1 1,815.85 l0 l0 7 92.s0 23 46.50 35 58 l8 73 3t l3 260 34 3l r .50 88 39 9 I 6.50 t7 2 4 59 2t.25 8.50 N/A 3 7 8.16 8.20 25.84 N/A 55.46 64.92 27.05 14.05 20.80 5.70 0.50 N/A l7.l 8 148 1,692.6r 22 16.50 260 34 31 1.50 85 38 9 l6 l5 2 3 52 20 7.50 N/A 3 7 1.t6 9.20 23.88 2 43 36.45 33.42 13.33 16.60 1.67 I N/A 8.25 144 1,593.26 23.50 16.50 260 34 296.50 85 37 9 l6 l5 2 3 50 20 7.50 N/A 1.50 7 8 8.20 23.86 2 44 36.45 33.42 13.33 16 70 155 I NiA I 0.75 141.55 1,593.56 St. Lucie County, Office of Mmagement md Budget, Clerk of the Circuit Court, Property Appmiser, Supenisor of Elrctiom, Tu Collector md Sheriff Notes: N/A - Infomation not available 202 Schedule l7 2013 t0 9 450 86 13 l6 39 43 t4 10 t1 9l 22 50 16.s0 2',74 50 33 281 50 8s 34 9 l6 l6 2 3 50 20 750 N/A 2.25 7 8 10.20 25.86 2 44.50 25 40 51,.21 l3 33 t7 40 250 N/A '1'1s 3 12t 6l 1.598.34 20t4 l0 9 4.50 86 13 l5 39 43 35 14 t7 97 23 s0 I 8.50 2.t0 35 334 85 35 l0 t7.25 l6 2 3 49 20 7.50 N/A 225 1 8 12.70 25 86 2 46 00 25.40 5t 21 l3 33 t7 40 2.50 N/A 7 75 3 I 25.90 1.671.09 20r5 l0 9 4.50 85.1 3 14 39 45 73 74 l8 97 21 l8 50 2t5 33.s0 309 85 5l t0 r 8.2s t'7 2 3 55 20 750 N/A 2.25 7 8 12.'70 26.86 2 46 31 30 51,.21 I t ,t 17 40 2 N/A 3 124 28 1,624.25 20t6 t0 9 1 .39 92.10 l5 39.30 41.39 72 l8 ll5 26 18.50 215 33.50 309 85 64 I1 t8 26 T] I 4 55 20 8 I I '1 9 13.70 26 86 2 63 33.30 41.60 13.33 t'].40 2 N/A 9 4 r3 1.61 1,686.24 St. Lucie County, Florida Operating Indicators by Function/Program Last Ten Fiscal Years Function/Prosram Getreral Covernment Administration Media Relations Nmber of press releases sent out on a weekly basis Number of local, SLCTV originated progms produced monthly Nmber of monthly visits to tle County's main web page Central Senices Maintenance/Custodial Sqwe footage of buildings (maintained) Seruice Gmge Gmoline/Diesel - Gallons sold Comty Attomey Nmber of Ordinmces per calendr yer Nmber of Resolutions per calendar yea Nmber of Public Records Requests per year Economic & Stmtegic Development Provide for expansion in employment as measured by Qualterly Ceosus ofEmployment (lst quarter only) Plming & Development Services Response time for all public inquiries (hours) Plaming Notifietion tetters for petirions (days) Hmm Resources Number of training sessions Risk Mmagement Nmber of workers compensation claims Nmber of auto liability claims Nmber of general liability md property claims lnfomation Technology Nmber of work orders per calendr yer Nmber of baining claess offered per calendr yea Cl6s records - comty employees per calendar yer Class records - outside agency employees per calendar yeu MmagemeDt md Budget Achieve a 33-ll3Vo success rate in applying for grmts Nmber of gmts awrded Dolld momt of grant funds awaded Puchasing Nmber of puchming crd rransactions Nmber of purchase orders < 52,500 Nmber of puchme orden between $2,500 to $20,000 Nmber of puchase ordere > $20,000 Total puchase order value Material center copies Source: St- Lucie County, OfEce ofMalagement md Budget Notes: N/A - InformatioD not available 200't 2008 8 4 68,000 t,687,238 348,342 60 4r9 44 69,934 48 l5 100 42 t2 ll t0,934 123 s9l N/A s6% N/A N/A 14,006 t,669 989 494 tt't,983,52't 3,2'12,'199 7 5 49,000 t,692,095 312,166 34 367 45 64,604 48 l5 7 2010 8 4 62,573 t,653,293 298,53't 38 320 57 63,949 48 l5 7 9,120 82 221 53 2009 ,1 4 60,000 1,418,007 395,095 54 428 43 7r,225 48 l0 120 54 t4 48 14,134 108 433 N/A 52.8yo N/A N/A 14,7t3 2,911 I,3'76 714 t42,405,033 3,33 8,373 46 44 2t 21 40 48 I 1,836 98 382 N/A 520/o 45% N/A 14 N/A 10,000,000 15,379 12,863 1,529 1,243 1,005 839 435 3',16 t02,194,899 S 7s,443,440 2,764,r6',1 I,920,772 204 Schedule 18 2011 2012 2013 2014 20t5 20t6 8 6 62,000 r,649,7t2 278,763 36 218 6l 8 4 65,000 1,654,542 275,854 25 235 100 8 4 65,750 1,654,542 281,762 46 253 73 68,598 48 l0 22 50 4 57 8,323 83 353 70 50yo l0 $ 1,946,291 I 1,13 I 1,162 899 397 $ 83,164,435 t,4t1.412 8 6 73,160 t,660,232 282,000 25 200 69 66,76'1 48 l0 ls0 35 4 44 7,622 94 476 99 33.30/o 8 $ 1,162,468 tt,997 1,170 950 43,1 $ 74,045,269 1251.015 7 5 79,000 2,r08,35 I 276,199 t7 257 41 48,326 24 l0 180 32 3 4l 10,980 89 522 239 ss% ll $ 2,020,469 12,405 1,t44 951 438 $ 101,279,342 1,335,394 ,l 5 80,1 l 8 2,108,35 I 265,676 22 23s 28 59,s88 24 10 300 26 7 36 12,t42 8l 382 t3.1 46% t4 $ 1,458,756 12,918 1,060 946 437 s 72,s29,24s 1,254,653 64,844 67,4t2 48 48 15 10 26 34 45 3t2 39 35 8,462 8,853 ll5 98 353 474 74 t74 50o/o 38o/o 107 t,0M,692 $ 905,462 I 1,685 l 1,805 1,107 1,125 824 863 358 319 74,331,63t $ 78,784,058 1,239,607 1,836,467 205 St. Lucie County, Florida Operating Indicators by Function/Program (Continued) Last Ten Fiscal Years 20092008 PubUc Safety Criminal Justice Number ofnew SLC defendats per yeu Nmber of SLC Drug Lab tests per yetr Nmber of Okeechobee Drug Lab tests per year Number ofSLC jail bed days saved by Pretrial per yer Yerly savings ofSLC jail bed days (at $71.3 I per day) Previously $60 Nmber of SI.C Pretrial field/residence visits per yer Number ofnew Okeechobee defendants per year Number ofOkeehobee jail bed days saved by Pretrial per yer Yealy savings of Okmhobee jail bed days (bmed on $70.00 per day) Number ofOkeecbobee Pretrial field/residence visits per year Public Safety Central Commuications Dispatched calls 91 I catls to SO, FPPD, PSLPD md non emergency lines Avemge uswer time for 91 1 calls (seconds) Animal Control Animal complaints raeived Cruelty complaints investigated Nmber of animals picked up Code Complimce Average response time on code enforcement complaints (hous) Average response tirne on building inspection requests (hours) Time to certil, applications for a contractors certificate (days) Avemge processing time for single fmily home pemits (days) Avemge processing tinre for comercial development applications (days) Emergency MaDagement Public presentations of hwicme prepredness Public presentations on nuclear preparedness Mrine Safery Participation /Swim-Visitors Rescues Medical Aids Enforcement Actions Radiological Plmning Radiological Emergency Response Training Radiological Orientation Tminin g Physicel Environment Couty Extemion Office Visits to clients/site visits Visits to oIfice by clients Telephone calls received Nmber of panicipmts attending progms offered Email contacts Website conLacts Environmental Resouces Education & Outr€ch Number of visitors Nmber ofparticipmts in Education progrms Nmber of volmteers Nmber of voluteer hous Iads Nmbers of Environmental lands Nature Progrms Nmbers of participmts in Environmental lands Nature Progms N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 456,812 l5 1 2,809 304 I,9t2 24 24 30 l4 28 21 3 5t3,3',t4 66 74 l8 809 140 7,380 3,190 I 5,330 82,624 N/A 96,256 27,000 t0,286 52 2,400 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 362,t69 l5 13,156 337 2,682 24 24 30 l0 20 25 3 436,447 40 t4 I,023 140 6,160 3,31 I 14,532 78,865 N/A r 17,938 35,000 7,000 4l 1,000 N/A N/A 480,252 15 12,724 340 1,598 72 24 60 10 20 25 5 427,78t 30 85 25 614 159 480,688 t5 12,034 282 t,'132 72 24 60 t0 20 25 5 4 l 3,660 25 t24 20 833 210 36,3 I 3 s,000 34 9',16 N/A N/A N/A 750 N/A t',7,672 N/A N/A N/A 56,802 N/A 3,408,120 N/A 5,300 N/A N/A N/A N/A N/A N/A N/A N/A 1,1 13 785 3,382 3,924 7,590 8,099 10,092 63,401 N/A t0,49't 855,499 2,507.637 36,500 8,334 27 758 N/A N/A 206 Schedule 18 201t 2012 2013 2014 2015 20t6 615 r8,300 N/A 54,2U 7,009 N/A N/A N/A N/A 482,655 l5 t2,314 233 1,642 72 24 60 l0 20 t2 6 420,185 23 205 8 965 10.1 515 2,726 8,269 102,883 9,491 615,429 42,629 8,103 32 1,457 N/A N/A N/A '12,662 7,327 N/A N/A 5,7 10 u,494 3,91l 98 7,660 8,895 N/A N/A N/A N/A 483,0 l0 15 t2,642 197 t,547 48 24 60 10 20 t7 6 418,708 54 52 ll 642 l4l 525 2,833 8,060 102,658 10,025 1,100,018 35,t74 7,431 39 2,309 N/A N/A N/A N/A N/A 57,304 87,',il4 74,085 762 1,004 24,046 29,'1s4 912 29,398 8.152 8,923 N/A N/A N/A N/A N/A N/A N/A N/A 893 6t2 30,361 25,O2',1 s 3,254,40 $ 3,438,240 $ 5,262,840 $ 4,445,100 S 4,359,120 $ 3,172,867 N/A $ 536,200 485,254 l0 t2,82'1 287 1,451 48 24 60 26 26 22 394,880 24 48 l0 1,025 106 109 4,002 5,908 70,899 11,622 224,733 36,007 8,394 43 ) {r? N/A N/A 487,058 10 12,838 258 1,274 48 24 45 l5 l5 36 I 423,927 38 45 l0 926 83 372 4,024 1,349 s9,680 12,262 2t3,t65 38, I 70 14,130 49 s,071 N/A N/A N/A 480,846 l0 12,s',t0 296 1,085 48-72 24 60 35 29 24 I9 410,692 57 58 3 1,008 lll 732 3,31 I 5,353 39,092 11,428 424,435 35,071 1,5 l0 58 4,932 52 4,14 617 490,206 10 t2,250 308 1,057 48-72 24 60 20 35 22 27 387,021 32 50 7 663 46 158 1,719 5,470 20,0u 8,626 326,305 34,532 6,314 108 5,553 84 750 207 St. Lucie County, Florida Operating Indicators by Function/Program (Continued) Last Ten Fiscal Years Function/Program Physical Enwionment - continued Enviromental Regulations Vegetztion removal permits issued Dme Triming pemits issued Dock pemits issued Sea wall pemits issued Site plms - Pre-Apps reviewed Zoning Complince Code Revisions Consulting Sewices provided to SLC Departments (hous) Enviromental Imds Greenways ad Tmils opened (mles) Miles of Trails Maintained by Division (Greenways & Presenes) Nmber of Preserues Maintained by Division for Public Access Acres Mmaged for Invaive Plmt Species (Annual Projects) Acres of Habitat Enhancement/Restomtion (fue, invasives, wetlands, etc.) Acres Maintained by Division (Staff& Contractors) Assistace to SLC Departments (Nmber of requests) Department Acquired Grots & Fmdjng Assistance Hours of Assistance to Departments md Partners Community Plmting Projects (Honrs) Erosion Sea TMle Monitoring - Total false cmwls Cyds ofbeach renouishment oferosion areas Public Works Nmber of Artificial Reef Construction (Deployments) Solid W6te Clms I Waste (Tons) Constructiotr & Demolition (tons) Yud Waste (toos) Sirgle Stream Recycling (tons) Uti[ties Customer Base Avemge calls per month Gallons of watewater treated Gallons of water treated Puchmed water (gallons) Gallons of reue made T ra nsport2tion Airport Aviation Fuel Sales (Gallons) Itinemt Aircmft Opemtions Incal (Tmining) Aircmft Operations Based Aircnft Customs Aircraft Arrivals Comuiry Sewices Coordinated Tmsportation Trips Treasue Coast Connector-Fixed Route Bus Service Ridership Engineering Total Capital Improvement Projects in design md-/or construction Total Stomwater Mmagement Projects in design md/or cons truction Total MSBU Projects being administered md implemeoted Total Utility md fught-of-Way pemits issued 2007 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 69 N/A 4 244.147 t55,2t2 57,802 N/A lt,449 800 312,80?,000 48,800,000 2t 1,323,000 N/A t,678,941 73,951 46, r 83 168 6,059 670,486 79,722 73 t8 43 242 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A ll2 N/A 4 213,984 81,930 s4,464 N/A I 1,943 1,020 3 18,373,000 46,227,000 231,316,000 N/A 1,540,188 't3,9sl 46,1 83 196 6,lll '73',1,534 101,328 N/A N/A N/A N/A 180 N/A N/A N/A 45 46 25 400 56't N/A N/A N/A N/A N/A 69 N/A 7 r89,178 31,5'17 47,670 N/A t2,373 I,2t5 3 r 5,349,000 35,680,688 303,443,000 N/A 1,289,249 '10,747 43,228 231 4,',l36 336,327 I I 8,637 288 N/A N/A N/A 108 N/A N/A N/A 2 48 26 525 1,000 N/A N/A N/A N/A N/A 84 N/A 3 182,0',12 27,316 52,681 N/A 12,478 t,263 267,432,000 43,202,724 329,494,000 2 13,000,000 r,396,481 6',1,196 68,687 235 5,208 296,899 l 16,000 2008 2009 2010 73 80 t7 45 275 80 20 45 r36 t8 43 250 208 Schedule 1820tt 2012 2013 2014 2015 350 N/A N/A N/A 73 N/A N/A N/A 0 48 26 610 1,073 N/A N/A N/A N/A N/A N/A 62,000 4 t78,214 14,869 47,790 N/A t2,584 |,295 3s5,60 1,000 42,7',|2,t40 355,246,000 2 r 3,488,000 1,230,r 63 70,834 74,860 234 5,128 315,371 136,334 286 N/A N/A N/A 11 N/A N/A N/A l0 58 27 s69 1,25 | N/A N/A N/A N/A N/A N/A 48 1,000 4 l 70,148 l 7,6 l0 45,623 N/A 12,667 I,241 399,598,000 47,553,900 167,585,000 249,300,000 1,279,0',10 67,808 69,050 234 5,151 215,363 152,56t 439 N/A N/A N/A 84 N/A N/A N/A I 59 28 200 188 N/A N/A NiA N/A N/A N/A 1,065,475 4 l 75,089 24,0t7 45,430 N/A 12,763 l,l l0 294,91 8,000 45,73 1,000 340,052,000 2l r,307,000 t,243,867 6',1,130 12,898 252 4,934 296,6s8 167,681 469 524 34 34 34 40 39 1 13 l3l N/A 26 N/A I N/A 189 6'1s 3l 53 8 t24 26 I 104 N/A N/A 3 19,091 0 20t6 5 t72,980 40;7-15 55,164 40,821 t2,966 1,489 3 1 3,1 07,000 46,680,400 328,096,000 225,267,000 260,9s2 295,350 81 l1 5.1 220 2t00 60 60 60 22127 52 2,211 3,492 124 2,281 4,092 N/A 9,181 10,000 N/A 56 15 N/A $76r,876 $3,712,s90N/A 1,614 996 N/A 256 260 N/A r64,r00 3 163,281 31320 47,267 N/A t2,814 1,440 308,743,000 46,240,455 304,690,000 255,499,000 1,233,399 76,398 81,692 264 4,516 277,846 188,127 J t67,638 36,834 49,002 36,993 12,94t 1,482 293, I 55,000 47,371,000 320,084,000 215,423.000 1,157,647 t,176,656 69,238 69,350 89,728 86,319 262 275 4,849 4,971 83 2t 42 t25 88 80 14 55 200 83 l6 57 180 265,516 t8'1,t42 86 l6 57 180 25 44 200 209 St. Lucie County, Florida Operating Indicators by Function/Pro gram (Continued) Last Ten Fiscal Years Function/Prosram Transportation - continued Public Works Grmts maaaged Grmt dollm managed Grant dollas reimbused Road & Bridge Feet of culvert installed Roads surfaced with asphalt mitlings per year (nriles) Roads surfaced with chip-s€l per yer (miles) Road miles graded per week Road miles resurfaced per ym Tmffic signs made Traffic signs installed Major dminage cmals clemed (miles) Water Quality Division Linear feet ofswal€ excavated and restored (feet) - Conhactor Squde feet of swale exmvated md rstored (feet) - In House Economic Environment Veteran's Seryice Veterms medical tmsportation provided Veterms, widows, dependents & others couseled Telephone Inquires Benefits claims filed Infomation and Refenal Concacts Nmber of Veterm Sewices Provided Nmber of Outreach Events in the Comunity ComuDity Services Phone inquiries, interuiews and office visits for all seruices Contracts, grants, md applications administered Nmber of Foreclosure Homes Purcbased Nuber of Homes Rebabilitated Social sewice application received Residents assisted with tax rehms throught IRS VITA progm Ntmber of Residents/Clients Assisted with Home Puchase Nmber of Residents/Clients Assisted by the Hadest Hit Fund Humsn Services Mosquito Control Adulticiding Acres Aerial kwiciding Acres 200't N/A N/A N/A 2,707 0 4 ill N/A 1,869 r,898 27 42,356 N/A 20092008 20 r0 N/A N/A N/A 2,283 0 20 103 N/A I,141 r,092 22 32,608 431,999 5,980 4,960 16,359 16,910 57,294 52,488 7,197 3,952 N/A N/A N/A N/A N/A N/A 41,02't 39,530 23,806,343 $ 18.930,258 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,009,950 1,299,49s 5.788 4.855 N/A 12 N/A S 9,273,s92 N/A $ 5,452,138 2,001 6,253 25 97 99 97 N/A 8 1,390 844 1,891 431 27 t9 27,218 38,250 417,460 100,622 4,840 4,738 17,4tt 16,623 53,020 69,959 4,075 4,108 N/A 52,3'14 N/A 67,244 N/A 100 61,579 7t,932 22,547,427 $ 33,373,236 N/A 30 N/A 27 N/A 850 99 125 N/A 7O N/A NiA 922,528 738,030 s,362 5,490 210 Schedule 18 2012 2013 201 5 20t6 ll 14 s 1,923,786 $ 11,,rc5,419 $ 1,900,7s0 $ 2,683,969 5,156 0 4 93 0 935 541 l3 39,333 189,863 4,94s 13,824 72,358 5,546 54,537 60,3 l8 120 897,980 3,220 't,251 I 4 90 2 954 467 16 38,982 45,23'.1 5,300 t1,703 74,258 s,001 N/A N/A It0 I3 $ 17,985,323 $ 5,069,301 5,319 4 9 84 2 949 447 20 32,06s l 38,789 6,142 t1,772 22,588 7,040 N/A N/A 47 68,320 s 16,671,961 8 33 t,624 453 12 46 977,s09 r.033 8 $ 14,691,234 s 2,869,848 6,559 9 3 75 7 1,1 33 423 14 25,9t6 17,580 s,790 3,801 3t,697 2,97't N/A N/A 0 76,468 $ 23,367,1'17 0 t9 984 654 9 35 87 t,752 342 8 $ ri,840,872 $ 1,036,813 3,767 3 2 74 22 987 393 6 4s,650 2,500 6,1o2 4,370 32,020 3,902 N/A N/A 152 55,285 $ 15,617,949 4 15 1,172 917 l0 2t 488,9't2 686 l0 $ 10,027,584 $ 1,114,402 4,292 4.06 2.43 1) 0.20 842 446 12.85 32,030 95,875 6,204 4,242 32,147 3,984 N/A N/A 196 40,688 $ 16,475,420 0 l8 1,398 t,172 l2 ll 734,o',t2 1,551 85,070 81,328 2',1,286,509 $ 42,s35,006 27 4'l 22 1,145 I,316 338 453 18 19 N/A 34 1,004,026 3.62',1 211 St. Lucie County, Florida Operating Indicators by Function/Program (Continued) Last Ten Fiscal Years 2001 2008 2l t7,947 10,425 100,799 657,078 N/A 263,577 N/A 892,849 N/A 40,910 NiA 237,056 30 176,779 l'r)t 4,988 35t 47,230 N/A N/A N/A 2,56',1,239 N/A 35 3,300 t48,293 6 57,308 48 7 49,768 850 700 30 b6v 30 20,009 ts,7t9 104,701 '137,752 N/A 254,232 N/A 962,300 N/A 42,724 N/A 260,000 41 t9r,334 4,372 4,466 165 42,699 N/A N/A N/A 2,415,321 N/A 35 3,300 t29,261 5 I 14,096 50 9 47,33',1 850 700 52 600 26 I 5,82 I l3,l8l 118,'129 759,3s0 N/A 272,972 N/A 823,632 N/A 32,0s9 N/A 212,599 4,4s3 5,866 136 39,65 l t4 40.354 228,099 $ 4l 5,200 l2l,0l8 2 t'l4,'132 66 6 3,-125 889 '790 58 600 2010 N/A 16,285 10,614 13r,420 669,772 N/A 283,42',1 N/A 653,786 N/A 19,767 N/A I 88,01 I 2009 Culture & Recreation Culnml Affaire - no longer dept Number of Mini-Grmts Awtrded to Community Non-Profits St Lucie County Aqurim Attendmce (Mrine Center) Regional History Center Attendilce (Historic Museum) Libruies Registered librry patrons Material circulation Ebooks circulated Reference transactions Database seilches Traffic count - in person Traffic comt - virtual Progm attendmce Wireless Sessions Intemet usage Prks md Recreation Fairgromds Special Events Facility Revenue Golf Couse 9 Holes Walking 9 Hotes Riding l8 Holes Walking l8 Holes Riding Havert L Fem Center (opened in FY 2009) Nmrber of events held Nmber of patons served Facility Revenue Touism Touist Development Tu Revenue Amul visits to website Paks Nmber of acres maintained per staff Nmber of gmes md practices played in relationship to balVsoccer field maintenmce Savannas Recreati oD Area User Fee Revenue Special Events Held [:mwood Fmtball Stadim Facility Revenue High School Fmtball & Soccer Gmes Special Events South Couty Regional Stadim Facility Revenue Tradition Field (Stadim) Fields prepaed for practice gmes Number of players trained Nmber of non-baseball events per yeil Number of ganes (bmeball) per yw N/A - Not Available 23 49 97,263 S 69,951 t,963,3s2 $ 2,039,593 N/A N/A 2,24',t 2,732 136 28,316 72 55,298 25r,504 < 10< t26,924 2 193,818 66 14 55,74t 921 783 52 602 43 212 Schedule 18 201 r N/A 18,655 3,837 l4 l,953 699,3 I 5 N/A 266,684 N/A 459,229 N/A 24,681 N/A tt4,5t2 N/A 24,251 9,474 151,795 719,823 N/A 299,310 N/A 544,t42 269,773 22,',l85 N/A r r3,068 2',1 15,151 2,584 2,628 124 34,105 55 82,995 ))o 1)a 2,6'18,874 93,60r 62 4,275 I 38,407 2 t34,995 6',1 8 105,971 892 766 28 617 N/A 32,t37 6,934 t61,880 708,864 N/A 2',10,564 N/A 555,707 298,838 25,604 N/A 102,578 34 t42,673 2,007 2,460 143 34,123 68 69,192 t72,589 2,s90,245 103,518 93 5,104 t65,537 2 70,7 53 32 1 75,846 1,002 808 33 109 N/A 33,378 8,948 171,7 t4 781,325 N/A I 89,673 N/A 565,188 324,81_4 28,t97 N/A 95,5 r 8 39 110,222 r,807 2,856 t40 40,552 't't 44,990 t64,028 3,01 5, r 99 124,392 75 5,075 t79,2tt 2 120,7'7L 14 13 47,694 1,030 840 40 '140 2015 N/A 47,2s9 9,83s 114,t8't 839,492 76,39s I 82,086 132,405 548,090 358,652 25,949 41,515 116,2'14 N/A 42,9t7 8,24s t]1,2t2 858,204 82,666 183,950 180,401 585,905 344,972 28,536 45,910 100,169 53 91,711 1,131 3,541 125 36,211 216 t03,022 190,448 43 5,230 237,452 2 136,401 22 t1 64,189 1,030 840 40 '140 2012 2013 2014 2016 25 66,844 2,836 3,546 129 35,089 t46 58,000 292,583 2,368,356 N/A 39 4,4t9 130,346 2 209,858 6l l6 163,909 908 762 49 629 3,400,825 $ 3,691,053 156,580 215,744 53 111,044 s 2,004 3,'161 9l 35,044 91 75,000 110,233 S 43 s,102 232,57t S 3 146,869 28 t9 85,934 1,030 840 40 740 213 St. Lucie County, Florida Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function/Program zo0l 2008 2009 2010 Physical Environment Utilities Wastewater Trarsmission Lines (miles) Water Transmission Lines (miles) Wastewater Treatment Plants Water Treatment Plants Transportation Airport Number ofRunways Road & Bridge Drainage Miles of Major Canals Miles of Ditches and Swales Traffic Traffi c Si gnats Maintained Traffic Sips Made Maintenance Miles of Paved Roadways Responsible Miles of Asphalt Milled Roads Miles of Rock/Dirt Roads Miles of Chip-Sealed Roads Culture & Recreation Environmental Resources Oxbow Eco-Center Exhibits New/Improved Passive Recreational Amenities on Preserves Librries Number of County Libraries Bookmobile Parks and Recreation Number of acres maintained Number of facilities: Regional History Center (Historical Museum) Number of exhibits St Lucie County Aquarium (Smithsonian) UDT-SEAL Museum County Golf Course Havert L. Fenn Center South County Stadium Tradition Field (Stadium) Number of basebatl fields Acres ofBermuda Turf Common Gromd Grass Acrs Source: St. Lucie County, Office ofManagement and Budget N/A - Not available 2 50 1,100 40 1,869 370 104 4 1 t N/A 5 I 2,139 I N/A I I I N/A I I 7 52 24 57 30 4 2 2 50 1,100 48 t,t47 3'.70 42 104 24 i I N/A 5 N/A 2,139 I N/A 3 52 1,100 48 1,390 370 33 99 33 I 2 N/A 5 N/A 2,572 3 52 1,100 51 844 370 28 97 38 1 2 N/A 5 N/A 2,599 52 24 58 5/ 4 2 58 32 4 2 55 11 4 2 52 24 7 52 24 2't4 Schedule l9 20ll 2012 2013 2014 2015 20),6 58 32 4 2 3 52 1,100 49 935 376 25 93 4l 3 52 t,100 3 52 t,100 3 52 1,100 57 1.133 J 52 1,100 57 981 3 52 1,100 l5 60 58 32 5 2 1 l5 60 58 32 5 2 58 32 5 2 58 32 5 2 58 32 5 2 49 954 375 27 90 44 I 3 N/A 5 NiA I 3 N/A 382 33 74 53 50 949 377 24 83 52 I 22 379 30 74 58 I 4 26 5 N/A I 22 '7 l5 60 57 842 379 30 67 62 I 4 26 I 4 N/A 1 4 N/A 5 N/A 1,525 5 N/A 430 5 N/A 1,245 1,245 5 N/A t,245 I r6 I 22 1 I5 60 I z0 15 60 52 215 THIS PAGE INTENTIONALLY LEFT BLANK 216 tts B:',H:?l'P#ff,' Eram' Ccrtilieil Public Accouofants Pt 600 Citrus Avenue Suite 200 Fort Pierce, Flo:ida 34950 7721161 -E i 20 i I 46:| -1 1Ss FAX| 7721458-9?78 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPUANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEHENTS PERFORIIED IN ACCORDANCE WITH GO YERATMETTJ T A U D ITI NG S 7A II'OARD S The Honorable Board of County Commissioners St. Lucie County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of Arnerica and the slandards applicable to financial audits contained in Govemment Auditing Standards issued by the Comptroller General of the United States, the financial statements of St. Lucie County, Florida, as of and for the year ended September 30, 2016, and the related notes to the financial statements, and have issued our reporl thereon dated March 29,2017. lnterna! Contsol Over Flnancial Repofting ln planning and performing our audit, we considered St. Lucie County, Florida's intemal control over financial reporting to detennine the audit procedures that are appropriate in the circumstences for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness sf St. Lucie County, Florida's internal control. Accordingly. we do not express an opinion on the effectiveness of St. Lucie County, Florida's intemal control over financial reporting. A deficiency irt internal corttrolexists when the design or operation of a control does not allow menagement or employees, in the normal course of performing tlrcir assigned functions, to prevent, or detect and conect misstatements on a timely basis, A material weafiness is a deficiency, or combination of deficiencies. in internal control, such that there is a reasonable possiht'lity that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a matarial waakness, yet important enough to merit atterrtion by those charged with governance. Our consideretion of internal corrtrol over financial repoding vvas for the limited putpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not iderttify arry deficiencies in irrterrral corrtrol that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. ror Pi2r1f strart Menilrer AI(.PA Division For CPA Firr:rs Private Companies Proclice .Sectlon Merr.lxr AICPA Mern!>er l-ICPA # g:lf""l r<r.mls' Elorn' The Honorable Board of County Commissioners St. Lucie County, Florida Compliance and Other Matters As paft of obtaining reasonable assurance about whether St. Lucie Gounty, Florida's financial statements are free of material misstatement, we performed tests of its compliance with certain provisiors of laws. regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govemment Audiling Slarrdards. Purpose of thls Report The purpose of this repoft is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This repoft is an integral part of an audil peformed in accordance with Government Auditing Standards in considering tlre entitt's internal control and compliance. Accordingly, this communication is not suitable for any other Purpose. Certified Public Accountants Fort Pierce, Florida March 29,2017 218 S BHf,:!I"fl#fi' Eram' Cirliliad PJllic A(cor.intant! PL 600 Citrus Avenue Suile 200 Fort Pierce, Florida 34950 772t461-61 20 // 4 61 -1 1 ss FAX: 7721460-9278 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE AND CHAPTER {0.550 RULES OF THE AUDITOR GENERAL The Honorable Board of County Commissioners St. Lucie County, Florida Report on Compliance for Each Major Federal Program and Sfafe Project We have audited St. Lucie County, Florida's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement and the Florida Department of Financial Services Projects Compliance Supplement that could have a direct and material effecl on each of St. Lucie County, Florida's major federal programs and state projects forthe yearended September30,2016. St. Lucie County, Florida's majorfederalprograms and state projects are identifled in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. M anag ant en f 's Respo n s i b i I ity Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs ard state projects. Audito r" s Res p o ns i bi lity Our responsibility is to express an opinion on compliance for each of St. Lucie County. Florida's major federal programs and state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally acrepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Sfandards, issued by the Comptroller General of the United States and OMB Circular A-133 Audits of Stales, Local Govemnpnfs and Non-Profit Organizations and the Flori<la Departmenl of Financial Seruices Projects Compliance Supplement. Those standards, OMB Circular A.133 and the Florida Department of Financial Services Projects Compliance Supplement require that we plan and perform the audit io obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred.to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about St, Lucie County, Florida's compliance with those requirements and performing such other procedures as we considercd necessary in the circumstances. Fort Pierce / Stuu,t 219 Member .A|CPA Diyisiorr Fr:r CPA Firnrs Private Com pani es Prl: cticr' Scclioe Member AICPA Member FTCPA B Berger, Tooinb,s, Eiam, Gaiies & Frank CfliH *. klrnr.s r The Honorable Board of County Commissioners St. Lucie County, Florida We believe that our audit provides a reasonable basis for our opirrion on compliance for each major federal program. However, our audit does rrot provide a legal determination of St. Lucie County, Florida's compliance, Opinion on Each Major Federal Program and Sfafe Project ln our opinion, St. Lucie County. Florida complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its maior federal programs and state projeds for the year ended September 30, 2016. Reporf on lnternal Control Over Compliance Management of St, Lucie County, Florida is responsible for establishing and maintaining effestive internal control over compliance with the types of compliance requirements referred to above. ln planning and peforming our audit of compliance, we considered St. Lucie County. Florida's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and repoft on internal controJ over compliance in accordance with OMB Circular A-133 and the Florida Deparfrnent of Financial Services Proiects Compliance Supplement but not for the purpose of expressing an opinion on the effectivenesE of internal control over comptiance. Accordingly, we do not epress an opinion on the effectiveness of St. Lucie County, Florida's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow managernent or employees, in Ure normal course of performing their assigned functions, to prevent, or detect and correct noncompliance with a type of cornpliance requirement of a federal program on a timely basis. A material uueakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected, on a timely basis. A signlficant deficiency in intemal contrcl over compliance is a deficiency or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than materiat weakness in internal control over complianoe, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the purpose described in the first paragraph of this section and was not designed to identify alldeficiencies in intemal controlover compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be materialweaknesses. Hewever, material weaknesses may exist that have not beerr identified. 220 S *ru roornlP' rlam' The Honorable Board of County Commissioners St. Lucie County, Florida The purpose of this report on internal control over compliance is solely to describe the scope of our testing of intemal control over compliance and the results of that testing based on the requirements of OMB Circular A-133 and the Florida Department of Financial Services Projecls Compliance Supplement, Accordingly, this report is not suitable for any other purpose, Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 29.2017 ?21 St. Lucie County, Flodda Schedule of Erpenditu16 of Federal Awards and State Projets For rhe Fircal Yw Ended September 30, 201 6 Federavstrate Agency Pass-throqh Entjty FedeBI ProcBn/State Proiect FEDERALAWARDS: US Departmetrt of Agricultue DirutProgm: Rural BuiDess Development GIilt (RBDG) Totsl US Departmetrt ofAgriculture US Depsrtment of CoEEerce DirotProgm: lDvestments for Public Works md Ercnomic Development Facilities IndirectPrcgm: Pased ttrcugh The Florida Departmot of Envircmmtal Protection Coretal Zone Moagemcnt Administration Awds Totd US DepartDetrt of Commerce US Department of Holth atrd Hmsn Senicd Indirect Progm: Passed Through the Flodda DepiltmeDt ofFronomic Opportunity Comuity Sewies Block Gmt Passed Tfuough dre Florida Departuimt of Revenue Child Support Enforment Passed Thrcugh the Florida Deparhot of State Division of Elections - IIAVA Smtion Voting Access for Individuls with Disabilities Total US Deprrtment of Health atrd lluman Seryices US Departmetrt of Ilomeland Security Di@tProgIam: PoIt S@uity Gmt Progm IndirctPrcgm: Passed Through the Florida Division ofEmergmcy Mmgement Homelmd Ssuity Grot Prepuedness Technical Assistance Progm Emogenry Mmagment Perfommce Gcnts Total US Departmetrt of Homeland Security US Deprrtment of Houring and Urban Development DirutProgre: Shelter Plus Cre Continumof CrePrcgm Total Prcgm: Home Investmflt Parhuships Progm Total Progm: IndirectPrcgm: Passed through the City ofFort Pierce Commity Development Block Gmt -Special Purposc Grots Passed Thrcugh Florida Departmflt of Economic Opportuity Co,muity Development B lock Gmtystate's Progm Total US DepartEent ofHousing and Urban Development 10.351 Cue451923213?ifrl CFDA CSFA Pass Through Entity Identifring Number TBNfen to SubreipientsExpqrditures $ 40,083 40,083 I 8,753 30,000 48,'153 312,192 452,287 7,5'77 172,0s6 325.633 t7,7'18 94,665 438,076 14,502 118,622 122,329 21,565 19,663 282,t79 24,342 307,841 237,959 570,t48 4,000 700,2 l3 t,631,M2 No. CoDtracVcmt Numher ll 300 1l 419 0,+{l{7042 cM6l7 16SB4D-12-00-0t-023 cD356 20 I 5-20 1 6.0004-STL 072215403 0369919s9 Unable to Incate CMM6O 93 s69 93.s63 93.6t7 97.056 97.067 91.042 14.238 14.267 ls-DS-P+t 0-6641468 l6-FG-54{15641-123 Fr.04l9c4H09l r0 FLfr191I.r'.H09t4M FIr3l0r.4H09l406 FL03 I 01,4H091 507 FI 397t4H091505 MI3-DC-120234 Mt4-DC-120234 Mls-DC-120234 EMW-20t 5-PU40461 TsDBOJ-10-66-01-H0l 0't221s403 012215401 Umble to loacate 012215403 t4.239 t4.225 t4.228 222 St. Lucie Couty, Florida Schedule ofExpendiaures of Fedenl Awards and State Projmts For the Fiscal Yw Ended September 30, 201 6 FedtraVState Agflcy Pass-through Entity CFDA CSFA No Pass Though Entity Identiling Nmber Tmnsfen to Subrrcipims Contract/Grol Nmber US Departm€trt of the Interior - Fish and Wildlife Di@tProgrm: Fedeml Aid in Sport Fish Restoration Indirect Prcgm: Passed Through Florida Fish md Wildlife Conseryation Comission Costal Wetlmds Plming, Protection ud Restoratioo Progm Totll US Department of the Itrterior - Fish and Wildlife US Department of Justice Dirct Progrms: State Criminal Alien Assistance Progm Total Progm: Public Safety Partreship md Comuity Policing G6ts DNA Backlog Reduction ProgED Paul Covqdell Forensic Scienres Irnprcvemmt Grmt Progm Total Progm; Edwd Byme Memodal Justice Assistance GrotProglm Indirect Progm: Pmsed Thrcugh Florida Department of Iiw Enforcement EdMd Byme Memorial Justice Assistance GmtProglm Total Progm: Tot2l US Departnetrt ofJustice US Departmeot of TraNportation Direct Progrm: Fedffil TEnsit Cluter Fedeml Tmmit Capital Investnent Crmts Federal Tmsit - Fomula Crots Total Prcgm: Bus md Facilities Fomula Prcgm Total Fedeal Tansit Cluter: Public TBnspodation Reslch Tmnsit Sewiaes Progro Cluster: Job Access ud ReveEe Comute Progm New Freedom Progrm Total Trmsit Seruices Progm Cluter: 15 605 FLF-FlsAFor24r t5 614 FWC-12395 Expenditures 40,000 55,282 9s,282 4,487 35,4',12 39,9s9 29,410 31,128 91,899 I 1,500 ! 09,399 I t,1 l5 615 27,tt2 15,315 54,t57 264,113 28,128 30,1 69 14,416 467,46s 2,033 1,065,789 44,277 1,624,149 88,545 t,740,822 t3,444 41,799 34,926 '16,725 4,48'l 1\ L1) 39,9s9 97,899 97,899 I I,l l5 615 27,112 15,315 54,157 t92,0ts 16,842 22,561 437,819 1,068,789 1,529,169 88,545 1,634,556 21,800 31,424 55,224 16606 r6 710 t6 741 t6 742 16.738 2013-AP-BX4s28 2014-A!-BX-0129 2013-uM-wx-0072 2015-DN-BX4049 2015-CD-BX-0028 2015{D-BX{048 201 3-DJ-BX-o373 16 738 2014-DJ-BX-0391 201 5-Dl-BX-0743 20r 6-JAGC-STLU-3-H34s2 07221s403 0'72215403 07221 s403 20.500 Ft {4417640 20.50'7 FL90-X765{0 Fr-90-x72140 FL90-X846{0 FL90-X70440 FL90-X866{0 FL90-X793{0 20.526 FL34402440 20 514 20.516 20 s2r FL26-002440 FL-37-X080-00 FL57-X045-00 223 St. lxcie Couty, Florida Schedule ofExpetrditures ofFederal Awards atrd State Projects For the Fiscal Yw Ended September 30, 201 6 Federavstate Agency Pass-tltrough Entity Fedeml Prosram,/State Proiect CFDA Pass Through Entity CSFA Contact/Gmt Identirying No. Nmber Number TEnsfm to Expenditures Sub{ipiots Iodirect Progro: Highwy Plaming md Construction Clutil: Passed through the Florida Departrnent of T@portation Highwy Plming md Construction Passed tluough the Univmity of Florida Highwy Plming md Comtruction Total Progm: Passed thrcugh the Florida Departnent of Enyiomotal Prctection Re@tional TBils Prcgm Total Highmy Plming od Conshuction Clusier: Passed thrcugh the Florida Depaftnent of Tmprtation Non-metropolit n Planning od Reswch Fomula Grots for Rual Ares Total US Departmetrt of Trensportltion US DepartEetrt of Vetemtrs AffaiN hdirect Progm: Pasrd Thrcugh Trrure Coast Homeless Services VA Supportive Series for Vetenn Fmilies Progrm Total US Department ofVeterans Affairs US Election Assistance Commission IndirectPrcgm: Passed Through Florida Departuimt of Sbte Help Amerjca Vote Act Requiremots Payments Total US Electioo Assistance Commission US Environmental Protetion Agency Indirect Proglm: Passed Through The Ftorida Department of Envirmmtal Prctrction Nonpoint Sowe Implmentation Gmts Passed Thrcugh the Indiu fuver Lagmn Coucil Natioml Estuary PrcgEm Total US Environmental Protectiotr Agetrcy TOTAL E)GENDITURES OF FEDERAL AWARDS * indietes grants swarded prior to December 26, 2014 20.205 A5l 15 PL03r1(52) 07221s4O3 520,460 G0c98 PL03r l(54) 07221s4O3 I 18,367 UFDSP00010854 BDV3I 0000080s13 s3,924 692,7s1 20219 T130321T1332 CMM60 20 s05 Go358 20.509 ARR39 66.456 2844',7 1,810 694.561 64.033 t+FL3222015:2016 Ct6-12-636 35,263 35.263 90.401 2015-20164001-STL Unable to Iocate 30,550 ?o 5so 66.460 C9-9945r513{ 99451513 l48.6ls 072215403 128,500 0'72215403 50,169 50,169 2,704,221 t;139,949 Grrl-1814 29,469 178,084 $ 6,237,523 $ 1,931,964 224 St. IJcie Comty, Florida Schedule ofExpenditures of Federd Awards atrd State ProJmts For the Fiscal Yeu Ended Sept€mb€r 30, 2016 FedffiYStaae Agocy Pass-through Entity FedeEl Profr aft-lstate Pmiecl STATE PROJECTS: florida Department of Agriculture 8trd Consumer Senices DirutProgm: Mosquito Contsol Total Florida Department ofAgriculture and Consumer Seryices Florida DepartmeDt of Etrvirotrmetrtal Protstiotr DirutProgm: Beach Mmagemot Fmding Assistance Prcgm Total Progm: Florida Rreation Development Assistance Prcgm Stabwide Surfae Water Restoration ed W6lewter Projets Indirect Prcgm; Passed Thrcugh The South Florida Water Milagment District Statewide Surf@ Water RestoBtion md Wdtewier Projects Total Progm: Totsl Florida Dep8rtmetrt of Enyironmentsl Protection F'lorida Department of Health - Bureu of EMS DietProgm: Comty Gmt Awards Tot l Florida DepartDetrt of Hslth - Bureau of EMS Florids Department of State and SEretary ofState DirectProgm: State Aid to Libruies Totd Prcgu: Public Library Constuction Progro Total Florida DepartDetrt of State and Secret8ry of State Florida Departmetrt of TransportatioD DimtProgm: Comission for fte Tmsportation Disadvmtaged (CTD) Trip md Equipment Gmt Progro Total Prcgm: Com.ission for dre Trasportation Disadwtaged (CTD)Plming Grot Prcgm Total Prcgm: Aviation Development Gnnts Total Prcgm: Seaport Gmts Pubtic Ttffiit Block Grot Ploglu Public Tmsit Swie Developmmt Prcgm Total Prcgm: Intmodal Development Progre Totsl Florid8 DepsrtEeDt of Transportation CFDA CSFA No. 42003 Conkact/Gmt Nubq Pass Through Entity ldentif,ing Nmbq Tnnsfen to Expenditures Subrecipients 37 011 37 039 3?.039 020321 I5SI2 I5SI3 l5sLt 09s12 I3SLl 13SI2 l6SLl A5013 s0820 460000279s $56 56 64.005 45.030 45.020 c4059 l5-sT-77 l6-sT-76 t6-Prc44 10,000 106,600 126,476 12,'t82 5,505 15,749 202,595 4'19,701 50,000 136,984 26,461 163,445 693,152 74,080 74,080 74,080 74,080 12,913 96,863 109,776 r29,800 239,s76 406,161 136,733 s42,894 20,331 6,731 27,068 19,320 5,916 5s8,935 584,t'.t2 15,660 388,473 13,368 11,t62 84,530 685,247 2,328,044 388,473 72,064 11,162 55 001 s5.002 55.004 55 005 5s 010 55.012 55.014 GOl97 c,0c06 GO260 G0c80 ARI32 AQV/o2 AQFO9 G0678 ARR14 ARR83 AR225 AQK84 225 471,699 St Lucie Couty, Florida Schedule of Expenditurm of Fedeml Awsrdr 8nd Strte ProjEts For the Fircal Yer Ended September 30, 2016 FedqaYstate Agmcy Pass-tluough Entity Federal Prosu/State Prciet CFDA CSFA No ContracL/Gmt Nmbs Pass Through Entity IdentiSing Numbc florida Ereutive Ome of the Goyertror Di@tProgm: Emrgency Mmagemflt Prcglm Tohl Prcgm: Residmtia.l Constsuction Mitigation Prcject Totrl Floridr Exrcutiye OIfice of the Govemor Floridr Fish atrd Wildlife Comenation Commission Dirot Progro: Artilicial Ref G@ts Prcg@ Total Prcgm: Total F'loridr Fish and Wildlife Consenation Commission t'lorida Houing Finance Corpomtion DiretProgm: State Houing Initiative Partrership (SHIP) Prcgnm Total Prcgro: Totsl Floridr Housing Fioance Corporation f'lorida Tourism, Trade, and Eonomic Development DiEtProgm: Facilities for New Prcfessional Sports, Retained Professional Sports or Retained Spring Tmining Frochise Totrl Florida Tourism, Trade, and Economic Development Floridr Deplrtmetrt ol Lrw EnforcemeDt DirutPrcgm: Statewide Criminal Analysis Iabontory Syslem Total Florida DepsrtmeDt ofLsw Etrforcement TOTAL E)CENDITIJRES OF STATE PROJECTS TmsfeE to Expsrditues Subr@ipients 't8,247 26,243 104,490 107,836 11,356 19,998 91,354 91,354 227,711 l8l,00r AO 9)L=478,s36 418,536 263,826 263,826 189,89s 189,89s $ 4,466,3ss $ 54s,779 31.063 3l ,066 r 6-BG-83-t0-66{1-056 r 7-BG-83-10-66{1463 l TRC-Al-t 0-6641-145 77.00'1 40.90r FWC-15135 FWC-15099 SHIP FY 2014/2015 SHIP FY 2015/2016 SHIP FY 2OI 6/20 17 73 016 11.002 ct 01 226 St. Lucie County, Florida Notes to Schedule of Expenditures of Federal Awards and State Projects Year Ended September 30,2016 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards and State Projects (the "Schedule") includes the federal award and state project activity of St. Lucie County, Florida under programs of the federal government for the year ended September 30,2076. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Jniform Guidance) and Chapter 10.550, Rules of the Auditor General. Because the Schedule presents only a selected portion of the operations of St. Lucie County, Florida, it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. Lucie County, Florida. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported using the modified accrual basis of accounting. The modified accrual basis of accounting recognizes revenues when they become measurable and available as net current assets and expenditures when the related fund liability is incurred. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governmenls, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. St. Lucie County, Florida has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 3. Program Clusters The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, similar programs deemed to be a cluster of programs are tested accordingly. 4. Contingency The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of St. Lucie County, Florida. ln the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal and state laws and regulations. 5. Program Income The federal expenditures presented in the Schedule of Expenditures of Federal Awards and State Projects (SEFA) for St. Lucie County, Florida, do not include expenditures funded by program income. The following schedule shows total grant-related expenditures and their funding source (federal, program income, or general fund match) for HUD grants, as these are the only grants with program income. St. Lucie County, Florida Notes to Schedule of Expendifures of Federal Awards and State Projects Year Ended September 30,2016 CDFA/CFSA FederaVState Total Program or Cluster Title Number Expenditures Expenditures Community Development Block Grants/ Entitlement Grants - Neighborhood Stabilization Program Federal Expenditures reported 14.218 Plus: Expenditures funded by Program Income 84.621 Total Grant Related Expenditures $ 8+.62t Community Development B lock Grants/ State Program Federal Expenditures reported 14.228 $ 700.213 700,273 Plus: Expenditures funded by Program lncome 12.748 Total Grant Related Expenditures $ 712.961 Home Investment Partnership Program Federal Expenditures reported 14.239 $ 570.148 570,148 Plus: Expenditures funded by Program Income 200.277 Total Grant Related Expenditures $ 770.425 State Housing Initiative Partnership Program State Expenditures reported 40901 $ 478.536 478,536 Plus: Expenditures funded by Program Income 50.983 Total Grant Related Expenditures $ 529.519 228 September 30. 2016 Section I - Summary of Auditor's Results FinanciaI Statements Tyne of auditor's report issued lnternal control over financial reporting: Material vreakness(es) identified? Significant detrciency(ies) identified not considered to be material weakness (es)? Noncompiiance material to financial statements noted? Federal Av;A:Ce _qnd_State P roiects lnternal control over major programlproject: Materia I weakne ss(es) identified? Srgnificanl deficiencyiies) identified not considered to be material weakness(es)? Reported Type of auditor's report issued on compliance Auditee qualifies as low-risk auditee, pursuant to tne Uniform Guidance St. Lucie County, Florida Schedule of Findings and Questioned Cost * FederalAwards and State Projects Unmodified Yes X No Yes __ X .. . None Reported Yes X No Yes X No Yes X None Yes X No for major federal programs and state projects Unmodified Any audil findings disclosed l.rat are required to be reporied in accordance with section 2 CFR 2OD.516(a) or Chapter 10.557? identification of majo r prog ramsiprojects: CFDANumber Naf,r,e of FederaiPJoqrqlr or Cluster14.?28 Communily Development Block Grants/State's Program14.239 Home lnvestnrent Partnership Program 20 205120.219 tiighway Planning and Construclion Cluster93.563 Child Support Enforcenrent97.056 Port Security Grant Program CSFAN-Unbg Name q_f.f,tae fuqicels37.003 Beach lvlanagement Fund:ng Assistance Program37.039 Statewide Surface \I,later Restoralion40.301 State llousing initiative Partnership (St-llP) Program45.C20 Public Library Construction Program55.004 Aviation Development Grants55.014 lntermodal Development Program Dollar threshold used to distinguish between Type A and B Federal programs $750,000 Dollar lhreshold used to distinguish betr,rreen Type A and B State programs $300,000 NoX Yes St. Lucie Counly, Florida $chedule of Findings and Questioned Cost - Federal Ar,vards and State Projects (Continued) September 30, 2016 Section ll - Financial Statement Findings There were no material weaknesses, significant deficiencies or instances of noncompliance related :o the financial stalenrents. Section ill- Maior Federal Programs Findings and Questioned Cost There were no audit findings related to federal programs required to be reporled by, Section 2 CFR 200.516(a), Uniform Guidance. Section IV - Major State Projects Findings and Questioned Gost There were no audit findings related to stale projects required lo be reported by Chapter 10.550, Ruies of the Aud.tor General. Section V - Summary of Prior Audit Findings There is no Summary of Prior Audit Findings or Corrective Actron Plan required to be repo6ed under Federal or Florida Single Audit Acts, as there were no prlor year findings, 230 JOSEPH E. SMITH Clerk of the Circuit Court St. Lucie County Comprehensive Annuol Fincrrciol Report Ior the Fiscol Yecs Ended September 30, 2016 www.stlucieclerk.com ITHIS PAGE INTENTIONALLY LEF.I BLANK] APPENDIX C FORM OF THE RESOLUTION ITHIS PAGE INreNrroNRLLy LEFI BLANKI EXECUTION COPY ST. LUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE BONDS, SERTES 2017 BOND RESOLUTION ADOPTED MAY 16,2017 SECTION 1.01. SECTION 1.02. SECTION 1.03. SECTION I.04. SECTION 1.05. SECTION 2.01. SECTION 2.02. SECTION 2.03. SECTION 2.04. SECTION 2.05. SECTION 2.06. SECTION 2.07. SECTION 2.08. SECTION 2.09. SECTION 3.01. SECTION 3.02. SECTION 3.03. SECTION 3.04. SECTION 3.05. SECTION 4.01. SECTION 4.02. SECTION 4.03. SECTION 4.04. SECTION 4.05. SECTION 4.06. SECTION 4.07. SECTION 4.08. ARTICLE II AUTHORZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS TABLE OF CONTENTS ARTICLE I GENERAL PAGE AUTHORZATION AND DESCRIPTION OF BONDS ,,..,...9 APPLICATION OF BOND PROCEEDS. ............... ............... 9 EXECUTION OF BONDS. ............. 10 AUTHENTICATION. ..................... 10 TEMPORARY BONDS. ............... ..................... 10 BONDS MUTILATED, DESTROYED, STOLEN OR LOST................ 1O INTERCHANGEABILITY, NEGOTIABILITY AND TRANSFER. ..... 1 1 FULL BOOK ENTRY FOR 8ONDS................ .................... t2 FORM OF BONDS ....... 13 ARTICLE III REDEMPTION OF BONDS PRIVILEGE OF REDEMPTION. ......................22 SELECTION OF BONDS TO BE REDEEMED. .............. ......................22 NOTICE OF REDEMPTION. ..,...,,.22 REDEMPTION OF PORTIONS OF BONDS .......................23 PAYMENT OF REDEEMED BONDS............. ,,,,....,,,.,,,.,...23 ARTICLE TV SECURITY; FUNDS; COVENANTS OF THE ISSUERS BONDS NOT TO BE INDEBTEDNESS OF ISSUER .........24 SECURITY FOR BONDS................ ..................24 CONSTRUCTION FLIND. .....,.,....,,24 FUNDS AND ACCOUNTS. .......,,..25 FLOW OF FLINDS ......,.25 COVENANT TO BUDGET AND APPROPRIATE; PAYMENT oF BONDS ....................27 REBATE FUND. ........,.28 ISSUANCE OF OTHER OBLIGATIONS.......... ..................28 SECTION 4.09. SECTION 4.10. SECTION 5.01. SECTION 5.02. SECTION 5.03. SECTION 5.04. SECTION 6.01. SECTION 6.02. SECTION 6.03. SECTION 6.04. SECTION 6.05. SECTION 6.06. SECTION 6.07. SECTION 7.01. SECTION 7.02. SECTION 7.03. SECTION 8.01. SECTION 9.01. SECTION 9.02. SECTION 9.03. SECTION 9.04. SECTION 9.05. ARTICLE V COVENANTS GENERAL ..................... 30 ANNUAL BUDGET. ......................30 ANNUAL AUDIT. ........ 30 FEDERAL INCOME TAXATION COVENANTS. .............30 ARTICLE VI DEFAULTS AND REMEDIES EVENTS OF DEFAULT............. .......................31 REMEDIES ...................31 DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS. ....,,....32 REMEDIES CUMULATIVE. .......... ..................32 WAIVER OF DEFAULT. ............ ......................32 APPLICATION OF MONEYS AFTER DEFAULT ,,..........32 CONTROL BY INSURER............... .................. 33 ARTICLE VII SUPPLEMENTAL RESOLUTIONS SUPPLEMENTAL RESOLUTION WITHOUT BONDHOLDERS'CONSENT ........35 SUPPLEMENTAL RESOLUTION WITH BONDHOLDERS' AND INSURER'S CONSENT .........35 AMENDMENT WITH CONSENT OF INSURER ONLY. .................... 36 ARTICLE VIII DEFEASANCE DEFEASANCE............. ................... 38 ARTICLE IX MISCELLANEOUS SALE OF BONDS .........40 OFFICIAL STATEMENT; CONTINUING DISCLOSURE .........40 APPOINTMENT OF REGISTRAR AND PAYING AGENT..... 41 PURCHASE OF BOND INSURANCE POLICY ..................41 GENERAL AUTHORITY............. .....................41 SECTION 9.06. SEVERABILITY OF INVALID PROVISIONS......... ,,,.......41 SECTION 9.07. REPEAL OF INCONSISTENT RESOLUTIONS. ................41 SECTION 9.08. EFFECTIVE DATE. ,,,..42 EXHIBIT A - FORM OF BOND PURCHASE CONTRACT EXHIBIT B - FORM OF OFFICIAL STATEMENT EXHIBIT C - FORM OF CONTINUING DISCLOSURE CERTIFICATE 111 RESOLUTION A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COLINTY, FLORIDA AUTHORIZING THE ISSUANCE OF NOT EXCEEDING S56,000,000 IN AGGREGATE PRINCIPAL AMOTINT OF ST. LUCIE COLINTY, FLORIDA NON-AD VALOREM REVENUE BONDS, SERIES 2017, TO FINANCE CERTAIN IMPROVEMENTS TO THE TRADITION FIELD SPORTS COMPLEX OWNED BY THE COUNTY; PLEDGING THE COTINTY'S RECEIPTS PURSUANT TO THE SPRING TRAINING PROGRAM AGREEMENT WITH THE FLORIDA DEPARTMENT OF ECONOMIC OPPORTTINITY TO PAY DEBT SERVICE ON THE BONDS; COVE,NANTING TO BUDGET AND APPROPRIATE CERTAIN LEGALLY AVAILABLE NON-AD VALOREM REVENUES TO PAY DEBT SERVICE ON THE BONDS; PROVIDING FOR THE RIGHTS OF THE HOLDERS OF THE BONDS; PROVIDING CERTAIN TERMS AND DETAILS OF SUCH BONDS, INCLUDING AUTHORIZING A NEGOTIATED SALE OF SAID BONDS AND THE EXECUTION AND DELTVERY OF A BOND PURCHASE CONTRACT WITH RESPECT THERETO UPON COMPLIANCE WITH CERTAIN PARAMETERS; APPOINTING THE PAYING AGENT AND REGISTRAR WITH RESPECT TO SAID BONDS; AUTHORZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT WITH RESPECT THERETO; AUTHORZNG THE PURCHASE OF BOND INSURANCE AND, IF SO PURCHASED, THE EXECUTION AND DELIVERY OF AN INSURANCE AGREEMENT; AUTHORZING THE EXECUTION OF A CONTINUING DISCLOSURE CERTIFICATE; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH THE BONDS; AND PROVIDING FOR AN EFFECTIVE DATE FOR THIS RESOLUTION. BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA: ARTICLE I GENERAL SECTION 1.01. DEFINITIONS. When used in this Resolution, the following terms shall have the following meanings, unless the context clearly otherwise requires: rrAcflr shall mean Chapter 125, Florida Statutes, Section 288.11631, Florida Statutes, and other applicable provisions of law. "Adjusted Essential Expenditures" means government and public safety as shown in the Issuer's essential expenditures for general audited financial statements less any revenues derived from ad valorem taxation on real and personal properly that are legally available to pay for such expenditures. "Amortization Installments" shall mean an amount designated as such pursuant to the provisions of this Resolution and established with respect to Term Bonds. "Annual Audit" shall mean the annual audited financial statements prepared pursuant to the requirements of Section 5.03 hereof. "Annual Budget" shall mean the annual budget prepared pursuant to the requirements of Section 5.02 hereof. "Authorized Investments" means any obligations, deposit certificates, or other evidence of indebtedness legal for investment pursuant to law, to the extent not inconsistent with the terms of the investment policy of the Issuer and applicable law. "Authorized Issuer Officer" shall mean the Chairman and the Clerk and when used in reference to any act or document, also means any other person authorized by resolution of the Board to perform such act or sign such document. "Board" shall mean the Board of County Commissioners of St. Lucie County, Florida, or any successor thereto. "Bond Counsel" shall mean Nabors, Giblin & Nickerson, P.A. or any other attorney at law or firm of attorneys, of nationally recognized standing in matters pertaining to the federal tax exemption of interest on obligations issued by states and political subdivisions, and duly admitted to practice law before the highest court of any state of the United States of America. "Bond Insurance Policy" shall mean the insurance policy, if any, issued by the Insurer guaranteeing the scheduled payment of principal of and interest on the Bonds when due. "Bondholder" or "Holdertt or I'holder" or any similar term, when used with reference to a Bond or Bonds, shall mean any person who shall be the registered owner of any Outstanding Bond or Bonds as provided in the registration books of the Issuer. "Bonds" shall mean the St. Lucie County, Florida Non-Ad Valorem Revenue Bonds, Series 2017. "Chairman" shall mean the Chairman of the Board or, in his or her absence or unavailability, the Vice Chairman. "Clerk" shall mean the Clerk of the Circuit Court, ex officio Clerk of the Board, and such other person as may be duly authorized to act on her or his behalf, including any Deputy Clerk. "Code" shall mean the Intemal Revenue Code of 1986, as amended, and the regulations and rules thereunder in effect or proposed. rrcostrr or "Costs" shall mean (1) the Issuer's cost of physical construction; (2) costs of acquisition by or for the Issuer of the Project; (3) costs of land and interests therein and the costs of the Issuer incidental to such acquisition; (4) the cost of any indemnity and surety bonds and premiums for insurance during construction; (5) all interest due to be paid on the Bonds and other obligations relating to the Project during, and if advisable by the Issuer, for up to one (1) year after the end of, the construction period of such Project; (6) engineering, legal and other consultant fees and expenses; (7) costs and expenses of the financing incurred during, and if advisable by the Issuer, for up to one (1) year after the end of, the construction period for such Project, including audits, fees and expenses of any Paying Agent, Registrar, or depository; (8) payments, when due (whether at the maturity of principal or the due date of interest or upon redemption) on any indebtedness of the Issuer (other than the Bonds) incurred for such Project; (9) costs of machinery or equipment required by the Issuer for the commencement of operation of such Project; (10) any other costs properly attributable to such construction or acquisition, as determined by generally accepted accounting principles, and shall include reimbursement to the Issuer for any such items of Cost heretofore paid by the Issuer. Any Supplemental Resolution may provide for additional items to be included in the aforesaid Costs. "Debt" means at any date (without duplication) all of the following to the extent that they are secured by or payable in whole or in part from any Non-Ad Valorem Revenues (A) all obligations of the Issuer for borrowed money or evidenced by bonds, debentures, notes or other similar instruments; (B) all obligations of the Issuer to pay the deferred purchase price of property or services, except trade accounts payable under normal trade terms and which arise in the ordinary course of business; (C) all obligations of the Issuer as lessee under capitalized leases; and (D) all indebtedness of other Persons to the extent guaranteed by, or secured by, Non- Ad Valorem Revenues of the Issuer; provided, however, that with respect to any obligation contemplated in (D) above, such obligation shall not be considered "Debt" for purposes of this Resolution unless the Issuer has actually used Non-Ad Valorem Revenues to satisflz such obligation during the immediately preceding Fiscal Year or reasonably expects to use Non-Ad Valorem Revenues to satisfii such obligation in the current or immediately succeeding Fiscal Year. After an obligation is considered "Debt" as a result of the proviso set forth in the immediately preceding sentence, it shall continue to be considered "Debt" until the Issuer has not used any Non-Ad Valorem Revenues to satisfu such obligation for two consecutive Fiscal Years. "Debt Service" shall mean, at any time, the aggregate amount in the then applicable period of time of (1) interest required to be paid on the applicable Debt during such period of time, except to the extent that such interest is to be paid from proceeds of the Debt for such pu{pose, (2) principal of outstanding Debt maturing in such period of time, and (3) the Amortization Installments with respect to Outstanding Term Bonds or amortization payments with respect to other Debt maturing in such period of time. "Essential Expenditures" means essential expenditures for general government and safety as shown in the Issuer's audited financial statements. "Federal Securities" shall mean non-callable direct obligations of the United States of America (including obligations issued or held in book-entry form on the books of the Department of Treasury) or non-callable obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. "Financial Advisor" shall mean Public Financial Management, Inc., or its successor, as financial advisor to the Issuer. "Fiscal Year" shall mean the period commencing on October 1 of each year and continuing through the next succeeding September 30, or such other period as may be prescribed by law. "Fitch" shall mean Fitch Ratings, and any assigns and successors thereto. "Insurer" shall mean the municipal bond insurer, if any, designated pursuant to Section 9.04 hereof. rrlnterest Date" or "Interest Payment Date" shall be April 1 and October 1 of each year, commencing October 1,2017 , and any date of redemption of the Bonds, or such other dates as established by the County Administrator, based on advice of the County's Financial Advisor, prior to the issuance of the Bonds. "Issuer" or "County" shall mean St. Lucie County, Florida. "Maximum Annual Debt Service" means the maximum annual Debt Service on a consolidated basis of all Debt payable from Non-Ad Valorem Revenues then outstanding and the planned additional Debt to be issued for the then-current or any subsequent Fiscal Year. For purposes of the foregoing (a) if said Debt has 25o/o or more of the aggregate principal amount coming due in any one year, Debt Service shall be determined on the Debt during such period of time as if the principal of and interest on such Debt were being paid from the date of incurrence thereof in substantially equal annual amounts over a period of 25 years; and (b) for the purpose of determining Debt Service as described above, the interest rate on variable rate Debt shall be deemed tobe l20Yo of the average of the SIFMA Index over a two year period of time ending on the date immediately prior to the sale of such additional obligation. "Moody's" shall mean Moody's Investors Service, and any assigns and successors thereto. "Net Non-Ad Valorem Revenues Available For Debt Service" means the Non-Ad Valorem Revenues minus Adjusted Essential Expenditures. "Non-Ad Valorem Revenues" shall mean total revenues of the Issuer derived from any source whatsoever, other than revenues generated from ad valorem taxation on real or personal property, and which are legally available to make the payments required herein. "Outstanding," when used with reference to Bonds and as of any particular date, shall describe all Bonds theretofore and thereupon being authenticated and delivered except, (1) any Bond in lieu of which other Bond or Bonds have been issued under Section 2.06 hereof to replace lost, mutilated or destroyed Bonds, (2) any Bond surrendered by the Holder thereof in exchange for other Bond or Bonds under Sections 2.05 and 2.07 hereof, (3) Bonds deemed to have been paid pursuant to Section 8.01 hereof and (4) Bonds cancelled after purchase in the open market or because of payment at or redemption prior to maturity. "Paying Agent" shall mean the paying agent appointed by the Issuer for the Bonds and its successor or assigns, ifany. "Person" or "person" shall mean an individual, a corporation, a partnership, an association, a joint stock compafiy, a trust, any unincorporated organization, governmental entity or other legal entity. "Pledged Funds" shall mean (i) the Program Revenues, and (ii) until applied for the purposes described herein, the amounts on deposit in the funds and accounts established hereunder, other than the Rebate Fund. "Prerefunded Obligations" shall mean any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state (1) which are (A) not callable prior to maturity or (B) as to which irrevocable instructions have been given to the fiduciary for such bonds or other obligations by the obligor to give due notice of redemption and to call such bonds for redemption on the date or dates specified in such instructions, (2) which are fully secured as to principal, redemption premium, if any, and interest by a fund held by a fiduciary consisting only of cash or Federal Securities, secured in substantially the manner set forth in Section 8.01 hereof, which fund may be applied only to the payrnent of such principal of, redemption premium, if any, and interest on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as the case may be, (3) as to which the principal of and interest on the Federal Securities, which have been deposited in such fund along with any cash on deposit in such fund are sufficient, as verified by an independent certified public accountant or other expert in such matters, to pay principal of, redemption premium, if any, and interest on the bonds or other obligations on the maturity date or dates thereof or on the redemption date or dates specified in the irrevocable instructions referred to in clause (1) above and are not available to satisfiz any other claims, including those against the fiduciary holding the same, and (4) which are rated in the highest rating category (without regard to gradations, such as "+" or "-" or " 1, 2 or 3 " of such categories) of one of the Rating Agencies. "Program Revenues" shall mean the amounts received by the Issuer pursuant to the terms of the Spring Training Program Agreement. "Project" shall mean the acquisition and construction of improvements to the Tradition Field Sports Complex owned by the Issuer. "Rating Agencies" means Fitch, Moody's and Standard & Poor's. "Rebate Fund" shall mean the Rebate Fund established pursuant to Secti on 4.07 hereof. "Redemption Price" shall mean, with respect to any Bond or portion thereof, the principal amount or portion thereof, plus the applicable premium, if any, payable upon redemption thereof pursuant to such Bond or this Resolution. "Refunding Securities" shall mean Federal Securities and, to the extent approved in writing by the Insurer, if a Bond Insurance Policy is in place, Prerefunded Obligations. "Registrar" shall mean the bond registrar appointed by the Issuer for the Bonds and its successor or assigns, ifany. "Resolution" shall mean this Resolution, as the same may from time to time be amended, modified or supplemented by Supplemental Resolution. "Spring Training Program Agreement" shall mean that certain Spring Training Program Agreement Number 5B17-007, dated April 10,2017, between the Florida Department of Economic Opportunity and the Issuer. "Serial Bonds" shall mean all of the Bonds other than the Term Bonds. "SIFMA Index" shall mean the Securities Industry and Financial Markets Association Municipal Swap Index, or if that index is no longer published, a successor or similar index of short-term high-grade tax-exempt indebtedness. "Standard and Poor's" or rrS&P, shall mean S&P Global Ratings, and any assigns and successors thereto. "State" shall mean the State of Florida. "Supplemental Resolution. shall mean any resolution of the Issuer amending or supplementing this Resolution enacted and becoming effective in accordance with the terms of Sections 7.01,7.02 and 7.03 hereof. "Term Bonds" shall mean those Bonds which shall be designated as Term Bonds hereby. The terms "herein," "hereunder," "hereby," "hereto," "hereof," and any similar terms, shall refer to this Resolution; the term "heretofore" shall mean before the date of adoption of this Resolution; and the term "hereafter" shall mean after the date of adoption of this Resolution. Words importing the masculine gender include every other gender. Words importing the singular number include the plural number, and vice versa. SECTION 1.02. AUTHORITY FOR RESOLUTION. This Resolution is adopted pursuant to the provisions of the Act. The Issuer has ascertained and hereby determines that adoption of this Resolution is necessary to carry out the powers, purposes and duties expressly provided in the Act, that each and every matter and thing as to which provision is made herein is necessary in order to carry out and effectuate the purposes of the Issuer in accordance with the Act and to carry out and effectuate the plan and purpose of the Act, and that the powers of the Issuer herein exercised are in each case exercised in accordance with the provisions of the Act and in furtherance of the purposes of the Issuer. SECTION 1.03. RESOLUTION TO CONSTITUTE CONTRACT. In consideration of the purchase and acceptance of any or all of the Bonds by those who shall hold the same from time to time, the provisions of this Resolution shall be apart of the contract of the Issuer with the Holders of the Bonds, and shall be deemed to be and shall constitute a contract between the Issuer, the Holders from time to time of the Bonds and the Insurer, if any. The pledge made in the Resolution and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the Issuer shall be for the equal benefit, protection and security of the Holders of any and all of said Bonds and the lnsurer, but only in accordance with the terms hereof. A1l of the Bonds, regardless of the time or times of their issuance or maturity, shall be of equal rank without preference, priority or distinction of any of the Bonds over any other thereof except as expressly provided in or pursuant to this Resolution. SECTION 1.04. FINDINGS. It is hereby ascertained, determined and declared that: (A) The Issuer has deemed it in the best interest of its citizens to acquire and construct the improvements consisting of the Project. (B) The Issuer deems it to be in its best interest to issue the Bonds for the principal purpose of financing the Project, as determined pursuant to the provisions herein. (C) The Bonds shall be secured solely by a pledge of the Pledged Funds and a covenant of the Issuer, subject to certain conditions set forth herein, to budget and appropriate from Non-Ad Valorem Revenues amounts sufficient to pay the principal of and interest, and premium, if any, on the Bonds, when due. (D) The principal of and interest on the Bonds to be issued pursuant to this Resolution, and all other payments provided for in this Resolution, will be paid solely from the Pledged Funds and from Non-Ad Valorem Revenues in accordance with the terms hereof; and the ad valorem taxing power of the Issuer will never be necessary or authoized to pay the principal of and interest on the Bonds to be issued pursuant to this Resolution, or to make any other payments provided for in this Resolution, and the Bonds shall not constitute a lien upon any property whatsoever of or in the Issuer. (E) Due to the present volatility of the market for tax-exempt obligations such as the Bonds, it is in the best interest of the Issuer to sell the Bonds by a negotiated sale, allowing the Issuer to enter the market at the most advantageous time, rather than at a specified advertised date, thereby permitting the Issuer to obtain the best possible price and interest rate for the Bonds. The Issuer's receipt of the information required by Section 218.385, Florida Statutes, is a condition to the execution of the Purchase Contract (as defined below) in connection with the negotiated sale of the Bonds. A copy of the letter of the underwriters for said Bonds containing the aforementioned information is a condition precedent to the execution and delivery by the Issuer of the Purchase Contract referred to below. (F) Wells Fargo Bank, National Association, on behalf of itself and Citigroup Global Markets Inc. (collectively, the "Underwriters") expects to offer to purchase the Bonds from the Issuer and submit a Bond Purchase Contract in the form attached hereto as Exhibit A (the "Purchase Contract") expressing the terms of such offer, and, assuming compliance with the provisions of Section 9.01 hereof, the Issuer does hereby find and determine that it is in the best financial interest of the Issuer that the terms expressed in the Purchase Contract be accepted by the Issuer. SECTION 1.05. AUTHORIZATION OF THE PROJECT. The acquisition and construction ofthe Project is hereby authorized. ARTICLE II AUTHORIZATION, TERMS, EXECUTION AND REGISTRATION OF BONDS SECTION 2.01. AUTHORIZATION AND DESCRIPTION OF BONDS. This Resolution creates an issue of Bonds of the Issuer to be designated as "St. Lucie County, Florida Non-Ad Valorem Revenue Bonds, Series 2017," issued in the aggregate principal amount of not exceeding $56,000,000, the exact amount to be set forth in the Purchase Contract. The Bonds are issued for the principal purposes of financing the Project and paying certain costs of issuance incurred with respect to the Bonds. The Chairman is authoized and directed to determine whether the Bonds or any portion thereof shall be insured by the Bond Insurance Policy or whether the Bonds or any portion thereof will be issued uninsured, as set forth in Section 9.04 hereof. The Bonds shall be dated as of their date of delivery (or such other date as the Chairman may determine), shall be numbered consecutively from one upward in order of maturity preceded by the letter "R", shall be issued in the form of fully registered Bonds in denominations of $5,000 and any integral multiple thereof, shall be initially in book entry-only form of registration, shall bear interest from their date of delivery (or such other date as the Chairman may determine), payable semi-annually on each Interest Date, at such rates and mafuring in such amounts as set forth in the Purchase Contract. The Bonds shall bear interest computed on the basis of a 360-day year consisting of twelve 3O-day months. Subject to the provisions of the book entry-only system of registration described in Section 2.08 hereof, the principal of, and Redemption Price, if applicable, on the Bonds is payable upon presentation and surrender of the Bonds at the office of the Paying Agent. Interest payable on any Bond on any Interest Date will be paid by check or draft of the Paying Agent to the Holder in whose name such Bond shall be registered at the close of business on the date which shall be the fifteenth day (whether or not a business day) of the calendar month next preceding such Interest Date, or at the request of such Holder, by bank wire transfer for the account of such Holder. Al1 payments of principal of, or Redemption Price, if applicable, and interest on the Bonds shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 2.02. APPLICATION OF BOND PROCEEDS. The proceeds derived from the sale of the Bonds, including premium, if any, shall be applied by the Issuer as follows: (A) If the Chairman determines that the Bonds will be insured by the Bond Insurance Policy in accordance with Section 9.04 hereof, a sufficient amount of the Bond proceeds will be applied to the payment of the premium for the Bond Insurance Policy. (B) A sufficient amount of Bond proceeds necessary to pay costs and expenses relating to the issuance of the Bonds shall be used for such purpose. (C) The remaining Bond proceeds shall be deposited into the Construction Fund and used to pay the costs of the Project. SECTION 2.03. EXECUTION OF BONDS. The Bonds shall be executed in the name of the Issuer with the manual or facsimile signature of the Chairman and the official seal of the Issuer shall be imprinted thereon, attested with the manual or facsimile signature of the Clerk. ln case any one or more of the officers who shall have signed or sealed any of the Bonds or whose facsimile signature shall appear thereon shall cease to be such officer of the Issuer before the Bonds so signed and sealed have been actually sold and delivered, such Bonds may nevertheless be sold and delivered as herein provided and may be issued as if the person who signed or sealed such Bonds had not ceased to hold such office. Any Bond may be signed and sealed on behalf of the Issuer by such person who at the actual time of the execution of such Bond shall hold the proper office of the Issuer, although at the date of such Bond such person may not have held such office or may not have been so authorized. The Issuer may adopt and use for such purposes the facsimile signatures of any such persons who shall have held such offices at ary time after the date of the adoption of this Resolution, notwithstanding that either or both shall have ceased to hold such office at the time the Bonds shall be actually sold and delivered. SECTION 2.04. AUTHENTICATION. No Bond shall be secured hereunder or entitled to the beneht hereof or shall be valid or obligatory for any purpose unless there shall be manually endorsed on such Bond a certificate of authentication by the Registrar or such other entity as may be approved by the Issuer for such purpose. Such certificate on any Bond shall be conclusive evidence that such Bond has been duly authenticated and delivered under this Resolution. The form of such certificate shall be substantially in the form provided in Section 2.09 hereof. SECTION 2.05. TEMPORARY BONDS. Until definitive Bonds are prepared, the Issuer may execute, in the same manner as is provided in Section 2.03, and deliver, upon authentication by the Registrar pursuant to Section 2.04 hereof, in lieu of definitive Bonds, but subject to the same provisions, limitations and conditions as the definitive Bonds, except as to the denominations thereof, one or more temporary Bonds substantially of the tenor of the definitive Bonds in lieu of which such temporary Bond or Bonds are issued, in denominations authorized by the Issuer by subsequent resolution and with such omissions, insertions and variations as may be appropriate to temporary Bonds. The Issuer, at its own expense, shall prepare and execute definitive Bonds, which shall be authenticated by the Registrar. Upon the surrender of such temporary Bonds for exchange, the Registrar, without charge to the Holder thereof, shall deliver in exchange therefor definitive Bonds, of the same aggregate principal amount and maturity as the temporary Bonds surrendered. Until so exchanged, the temporary Bonds shall in all respects be entitled to the same benefits and security as definitive Bonds issued pursuant to this Resolution. All temporary Bonds surrendered in exchange for another temporary Bond or Bonds or for a definitive Bond or Bonds shall be forthwith cancelled by the Registrar. SECTION 2.06. BONDS MUTILATED, DESTROYED, STOLEN OR LOST. In case any Bond shall become mutilated, or be destroyed, stolen or lost, the Issuer may, in its discretion, issue and deliver, and the Registrar shall authenticate, a new Bond of like tenor as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, and upon the Holder furnishing the Issuer and the Registrar 10 proof of his ownership thereof and satisfactory indemnity and complying with such other reasonable regulations and conditions as the Issuer or the Registrar may prescribe and paying such expenses as the Issuer and the Registrar may incur. All Bonds so surrendered shall be cancelled by the Registrar. If any of the Bonds shall have matured or be about to mature, instead of issuing a substitute Bond, the Issuer may pay the same or cause the Bond to be paid, upon being indemnified as aforesaid, and if such Bonds be lost, stolen or destroyed, without surrender thereof. Any such duplicate Bonds issued pursuant to this Section 2.06 shall constitute original, additional contractual obligations on the part of the Issuer whether or not the lost, stolen or destroyed Bond be at any time found by anyone, and such duplicate Bond shall be entitled to equal and proportionate benefits and rights to the same extent as all other Bonds issued hereunder. SECTION 2.07. INTERCHANGEABILITY, NEGOTIABILITY AND TRAI\SFER. Bonds, upon surrender thereof at the office of the Registrar with a written instrument of transfer satisfactory to the Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing, may, at the option of the Holder thereof, be exchanged for an equal aggregate principal amount of registered Bonds of the same maturiry of any other authorized denominations. The Bonds issued under this Resolution shall be and have all the qualities and incidents of negotiable instruments under the law merchant and the Uniform Commercial Code of the State of Florida, subject to the provisions for registration and transfer contained in this Resolution and in the Bonds. So long as any of the Bonds shall remain Outstanding, the Issuer shall maintain and keep, at the office of the Registrar, books for the registration and transfer of the Bonds. Each Bond shall be transferable only upon the books of the Issuer, at the office of the Registrar, under such reasonable regulations as the Issuer may prescribe, by the Holder thereof in person or by his attorney duly authoized rn writing upon surrender thereof together with a written instrument of transfer satisfactory to the Registrar duly executed and guaranteed by the Holder or his duly authorized attomey. Upon the transfer of any such Bond, the Issuer shall issue, and cause to be authenticated, in the name of the transferee a new Bond or Bonds of the same aggregate principal amount and maturity as the surrendered Bond. The Issuer, the Registrar and any Paying Agent or hduciary of the Issuer may deem and treat the Person in whose name any Outstanding Bond shall be registered upon the books of the Issuer as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal or Redemption Price, if applicable, and interest on such Bond and for all other purposes, and all such payments so made to any such Holder or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid and neither the Issuer nor the Registrar nor any Paying Agent or other fiduciary of the Issuer shall be affected by any notice to the contrary. The Registrar, in any case where it is not also the Paying Agent in respect to any Bonds, forthwith (A) following the fifteenth day prior to an Interest Date for the Bonds; (B) following t1 the fifteenth day next preceding the date of first mailing of notice of redemption of any Bonds; and (C) at any other time as reasonably requested by the Paying Agent of such Bonds, shall certifli and furnish to such Paying Agent the names, addresses and holdings of Bondholders and any other relevant information reflected in the registration books. Any Paying Agent of any fully registered Bond shall effect payment of interest on such Bonds by mailing a check to the Holder entitled thereto or may, in lieu thereof, upon the request and expense of such Holder, transmit such payment by bank wire transfer for the account of such Holder. In all cases in which the privilege of exchanging Bonds or transferring Bonds is exercised, the Issuer shall execute and deliver Bonds and the Registrar shall authenticate such Bonds in accordance with the provisions of this Resolution. Execution of Bonds by the Chairman and Clerk for purposes of exchanging, replacing or transferring Bonds may occur at the time of the original delivery of the Bonds. All Bonds surrendered in any such exchanges or transfers shall be held by the Registrar in safekeeping until directed by the Issuer to be cancelled by the Registrar. For every such exchange or transfer of Bonds, the Issuer or the Registrar may make a charge sufficient to reimburse it for any tax, fee, expense or other governmental charge required to be paid with respect to such exchange or transfer. The Issuer and the Registrar shall not be obligated to make any such exchange or transfer of Bonds during the 15 days next preceding an Interest Date on the Bonds, or, in the case of any proposed redemption of Bonds, then, for the Bonds subject to redemption, during the 15 days next preceding the date of the first mailing of notice of such redemption and continuing until such redemption date. SECTION 2.08. FULL BOOK ENTRY FOR BONDS. Notwithstanding the provisions set forth in Section 2.07 hereof, the Bonds shall be initially issued in the form of a separate single certificated fully registered bond certificate for each of the maturities of the Bonds. Upon initial issuance, the ownership of each such Bond shall be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). All of the Outstanding Bonds shall be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. As long as the Bonds shall be registered in the name of Cede & Co., all payments of principal on the Bonds shall be made by the Paying Agent by check or draft or by bank wire transfer to Cede & Co., as Holder of the Bonds, upon presentation of the Bonds to be paid, to the Paying Agent. With respect to the Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, the Issuer, the Registrar and the Paying Agent shall have no responsibility or obligation to any direct or indirect participant in the DTC book-entry program (the "Participants"). Without limiting the immediately preceding sentence, the Issuer, the Registrar and the Paying Agent shall have no responsibility or obligation with respect to (A) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest on the Bonds, (B) the delivery to any Participant or any other Person other than a Bondholder, as shown in the registration books kept by the Registrar, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant or any other Person, other than a Bondholder, as shown in the registration books kept by the Registrar, of any amount with respect to principal of, redemption premium, if any, or interest on the Bonds. The Issuer, the Registrar and the Paying Agent shall treat and consider the Person in whose name each Bond is registered in the registration books kept by the Registrar as the Holder and absolute 12 owner of such Bond for the purpose of payment of principal, redemption premium, if any, and interest with respect to such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent shall pay all principal of, redemption premium, if any, and interest on the Bonds only to or upon the order of the respective Holders, as shown in the registration books kept by the Registrar, or their respective attorneys duly authorizedrn writing, as provided herein and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal, redemption premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No Person other than a Holder, as shown in the registration books kept by the Registrar, shall receive a certificated Bond evidencing the obligation of the Issuer to make pa5rments of principal, redemption premium, if any, and interest pursuant to the provisions of this Resolution. Upon delivery by DTC to the Issuer of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in Section 2.07 with respect to transfers during the 15 days next preceding an Interest Date or mailing of notice of redemption, the words "Cede & Co." shall refer to such new nominee of DTC; and upon receipt of such notice, the Issuer shall promptly deliver a copy of the same to the Registrar and the Paying Agent. Upon (A) receipt by the Issuer of written notice from DTC (i) to the effect that a continuation of the requirement that all of the Outstanding Bonds be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, is not in the best interest of the beneficial owners of the Bonds or (ii) to the effect that DTC is unable or unwilling to discharge its responsibilities and no substitute depository willing to undertake the functions of DTC hereunder can be found which is willing and able to undertake such functions upon reasonable and customary terms, or (B) determination by the Issuer that such book-entry only system is burdensome or undesirable to the Issuer and compliance by the Issuer of all applicable policies and procedures of DTC regarding discontinuance of the book entry registration system, the Bonds shall no longer be restricted to being registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, but may be registered in whatever name or names Holders shall designate, in accordance with the provisions of this Resolution. In such event, the Issuer shall issue, and the Registrar shall authenticate, transfer and exchange the Bonds of like principal amount and maturity, in denominations of $5,000 or any integral multiple thereof to the Holders thereof. The foregoing notwithstanding, until such time as participation in the book-entry only system is discontinued, the provisions set forth in the Blanket Letter of Representations previously executed by the Issuer and delivered to DTC shall apply to the payment of principal of and interest on the Bonds. SECTION 2.09. FORM OF BONDS. The text of the Bonds shall be in substantially the following form, with such omissions, insertions and variations as may be necessary and./or desirable and approved by the Chairman prior to the issuance thereof (which necessity and/or desirability and approval shall be presumed by such officer's execution of the Bonds and the Issuer's delivery of the Bonds to the purchaser or purchasers thereof): 13 No. R- UNITED STATES OF AMERICA STATE OF FLORIDA ST. LUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE BONDS, SERIES 2017 Interest Rate Maturity Date Date of Orisinal lssue CUSIP Number Registered Holder: Principal Amount: KNOW ALL MEN BY THESE PRESENTS, that St. Lucie County, Florida, a political subdivision of the State of Florida (the "Issuer"), for value received, hereby promises to pay, solely from the Pledged Funds and Non-Ad Valorem Revenues hereinafter described, to the Registered Holder identified above, or registered assigns as hereinafter provided, on the Maturity Date identified above, the Principal Amount identified above and to pay interest on such Principal Amount from the Date of Original Issue identified above or from the most recent interest payment date to which interest has been paid at the Interest Rate per annum identified above on _ 1 and _ 1 of each year, commencing 1, _ until such Principal Amount shall have been paid, except as the provisions hereinafter set forth with respect to redemption prior to maturity may be or become applicable hereto. Such Principal Amount and interest and the premium, if any, on this Bond are payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. Such Principal Amount and the premium, if any, on this Bond, are payable at the designated corporate trust office of , _, Florida, as Paying Agent. Payment of each installment of interest shall be made to the person in whose name this Bond shall be registered on the registration books of the Issuer maintained by ) _, Florida, as Registrar, at the close of business on the date which shall be the fifteenth day (whether or not a business day) next preceding each interest payment date and shall be paid by a check of such Paying Agent mailed to such Registered Holder at the address appearing on such registration books or, at the request of such Registered Holder, by bank wire transfer for the account of such Holder. Interest shall be calculated on the basis of a 360-day year of twelve 30-day months. t4 This Bond is one of an authorized issue of Bonds in the aggregate principal amount of (the "Bonds") of like date, tenor and effect, except as to maturity date, interest rate, denomination and number issued under the authority of and in full compliance with the Constitution and laws of the State of Florida, particularly Chapter 125, Florida Statutes, Section 288.11631, Florida Statutes, and other applicable provisions of law (collectively, the "Act"), and a resolution duly adopted by the Board of County Commissioners of the Issuer on May 16,2017 , as the same may be amended and supplemented (the "Resolution"), and is subject to allthe terms and conditions of the Resolution. The Bonds are being issued to finance certain capital improvements in and for the Issuer. Pursuant to the Resolution, the Issuer has pledged the Pledged Funds, as more fully defined in the Resolution, and has covenanted to appropriate in its annual budget, by amendment, if necessary, such amounts of Non-Ad Valorem Revenues (as defined in the Resolution) as shall be necessary to pay the principal of and interest on the Bonds when due and all required arbitrage rebate payments. Such covenant to appropriate Non-Ad Valorem Revenues is not a pledge by the Issuer of such Non-Ad Valorem Revenues and is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Revenues heretofore or hereafter entered into (including the payment of Debt Service on bonds or other debt instruments) and also to the payment of Essential Expenditures (as defined in the Resolution). IT IS EXPRESSLY AGREED BY THE REGISTERED HOLDER OF THIS BOND THAT THE FULL FAITH AND CREDIT OF THE ISSUER, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF, ARE NOT PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THIS BOND AND THAT SUCH HOLDER SHALL NEVER HAVE THE RIGHT TO REQUIRE OR COMPEL THE EXERCISE OF ANY TAXING POWER OF THE ISSUER, THE STATE OF FLORIDA, OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF, TO THE PAYMENT OF SUCH PRINCIPAL, PREMruM, fF ANY, AND INTEREST. EXCEPT AS EXPRESSLY SET FORTH HEREIN, THIS BOND AND THE OBLIGATION EVIDENCED HEREBY SHALL NOT CONSTITUTE A LIEN UPON ANY PROPERTY OF THE ISSUER, BUT SHALL BE PAYABLE SOLELY FROM THE PLEDGED FTINDS AND THE AMOI.INTS BUDGETED AND APPROPRIATED BY THE ISSUER AS DESCRIBED ABOVE AND AS PROVIDED IN THE RESOLUTION. The Issuer has established a book-entry system of registration for the Bonds. Except as specifically provided otherwise in the Resolution, an agent will hold this Bond on behalf of the beneficial owner thereof. By acceptance of a confirmation of purchase, delivery or transfer, the beneficial owner of this Bond shall be deemed to have agreed to such arrangement. This Bond is transferable in accordance with the terms of the Resolution only upon the books of the Issuer kept for that purpose at the designated corporate trust office of the Registrar by the Registered Holder hereof in person or by his attorney duly authorized in writing, upon the surrender of this Bond together with a written instrument of transfer satisfactory to the Registrar duly executed by the Registered Holder or his attorney duly authorized in writing, and thereupon a new Bond or Bonds in the same aggregate principal amount shall be issued to the transferee in 15 exchange therefor, and upon the payment of the charges, if any, therein prescribed. The Bonds are issuable in the form of fully registered Bonds in the denomination of $5,000 and any integral multiple thereof, not exceeding the aggregate principal amount of the Bonds. The Issuer, the Registrar and any Paying Agent may treat the Registered Holder of this Bond as the absolute owner hereof for all purposes, whether or not this Bond shall be overdue, and shall not be affected by any notice to the contrary. The Issuer shall not be obligated to make any exchange or transfer of the Bonds during the 15 days next preceding an interest payment date or, in the case of any proposed redemption of the Bonds, then, for the Bonds subject to such redemption, during the I 5 days next preceding the date of the first mailing of notice of such redemption. (INSERT REDEMPTION PROVISIONS) Redemption of this Bond under the preceding paragraphs shall be made as provided in the Resolution upon notice given by first class mail sent at least 30 days prior to the redemption date to the Registered Holder hereof at the address shown on the registration books maintained by the Registrar; provided, however, that failure to mail notice to the Registered Holder hereof, or any defect therein, shall not affect the validity of the proceedings for redemption of other Bonds as to which no such failure or defect has occurred. In the event that less than the full principal amount hereof shall have been called for redemption, the Registered Holder hereof shall surrender this Bond in exchange for one or more Bonds in an aggregate principal amount equal to the unredeemed portion of principal, as provided in the Resolution. As long as the book-entry only system is used for determining beneficial ownership of the Bonds, notice of redemption will only be sent to Cede & Co. Cede & Co. will be responsible for noti8zing the DTC Participants, who will in turn be responsible for notifiiing the beneficial owners of the Bonds. Any failure of Cede & Co. to notiSr any DTC Participant, or of any DTC Participant to notiff the beneficial owner of any such notice, will not affect the validity of the redemption of the Bonds. Reference to the Resolution and any and all resolutions supplemental thereto and modifications and amendments thereof and to the Act is made for a description of the pledge and covenants securing this Bond, the nature, manner and extent of enforcement of such pledge and covenants, and the rights, duties, immunities and obligations of the Issuer. It is hereby certified and recited that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Bond, exist, have happened and have been performed, in regular and due form and time as required by the laws and Constitution of the State of Florida applicable thereto, and that the issuance of the Bonds does not violate any constitutional or statutory limitations or provisions. Neither the Chairman nor the members of the Board of County Commissioners of the Issuer nor any person executing this Bond shall be liable personally hereon or be subject to any personal liability or accountability by reason of the issuance hereof. This Bond shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed by the Registrar. t6 IN WITNESS WHEREOF, St. Lucie County, Florida has issued this Bond and has caused the same to be executed by the manual or facsimile signature of the Chairman of its Board of County Commissioners and attested by the manual or facsimile signature of its Clerk, and its official seal or a facsimile thereof to be affixed or reproduced hereon, all as of the Date of Original lssue. ST. LUCIE COUNTY, FLORIDA (sEAL) Chairman, Board of County Commissioners Clerk of the Circuit Court, ex officio Clerk of the Board of County Commissioners L7 CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the Issue described in the within-mentioned Resolution. DATE OF AUTHENTICATION: Registrar By: Authorized Officer t8 Unless this certificate is presented by an authorized representative of The Depository Trust Company to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or such other name as requested by the authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. t9 ASSIGNMENT FOR VALUE RECEMD, the undersigned sells, assigns and transfers unto Insert Social Security or Other Identifying Number of Assignee (Name and Address of Assignee) books kept for registration thereof with full power of substitution in the premises. Dated: Signature guaranteed: the within Bond and NOTICE: Signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program. does hereby irrevocably constitute and appoint , as attom.eys to register the transfer of the said Bond on the NOTICE: The signature to this assignment must correspond with the name of the Registered Holder as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever and the Social Security or other identifying number of such assignee must be supplied. 20 The following abbreviations, when used in the inscription on the face of the within Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common TEN ENT -- as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common UNIF TRANS MIN ACT -- (Cust.) Custodian for under Uniform Transfers to Minors Act of (State) Additional abbreviations may also be used though not in list above. 21 ARTICLE III REDEMPTION OF BONDS SECTION 3.01. PRMLEGE OF REDEMPTION. (A) The terms of this Article III shall apply to redemption of Bonds. (B) The Bonds shall be subject to such optional and mandatory sinking fund redemption provisions as are set forth in the Purchase Contract. SECTION 3.02. SELECTION OF BONDS TO BE REDEEMED. The Bonds shall be redeemed only in the principal amount of $5,000 each and integral multiples thereof. The Issuer shall, at least 45 days prior to the redemption date (unless a shorter time period shall be satisfactory to the Registrar), notifu the Registrar of such redemption date and of the principal amount of Bonds to be redeemed. For purposes of any redemption of less than all of the Outstanding Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected not more than 45 days and not less than 35 days prior to the redemption date by the Registrar from the Outstanding Bonds of the maturity or maturities designated by the Issuer by such method as the Registrar shall deem fair and appropriate and which may provide for the selection for redemption of Bonds or portions of Bonds in principal amounts of $5,000 and integral multiples thereof. SECTION 3.03. NOTICE OF RLDEMPTION. Notice of such redemption, which shall specifii the Bond or Bonds (or portions thereof) to be redeemed and the date and place for redemption, shall be given by the Registrar on behalf of the Issuer, and (A) shall be filed with the Paying Agent of such Bonds, and (B) shall be mailed first class, postage prepaid, not less than 30 days nor more than 45 days prior to the redemption date to all Holders of Bonds to be redeemed at their addresses as they appear on the registration books kept by the Registrar as of the date of mailing of such notice. In addition to the making of the notice described above, the Registrar shall give additional notice of the redemption of Bonds in accordance with any regulation or release of the Municipal Securities Rulemaking Board or governmental agency or body from time to time applicable to such Bonds. Failure to mail such notice, or any defect therein, shall not affect the proceedings for redemption of Bonds as to which no such failure or defect has occurred. Such notice shall also be mailed to the Insurer, if any, of such redeemed Bonds. Failure of any Holder to receive any notice mailed as herein provided shall not affect the proceedings for redemption of such Holder's Bonds. Each notice of redemption shall state: (1) the CUSIP numbers and aty other distinguishing number or letter of all Bonds being redeemed, (2) the original issue date of such Bonds, (3) the maturity date and rate of interest borne by each Bond being redeemed, (4) the redemption date, (5) the Redemption Price, (6) the date on which such notice is mailed, (7) if less than all Outstanding Bonds are to be redeemed, the certificate number (and, in the case of a partial redemption of any Bond, the principal amount) of each Bond to be redeemed, (8) that on such redemption date there shall become due and payable upon each Bond to be redeemed the Redemption Price thereof, or the Redemption Price of the specified portions of the principal thereof in the case of Bonds to be redeemed in part only, together with interest accrued thereon 22 to the redemption date, and that from and after such date interest thereon shall cease to accrue and be payable, (9) that the Bonds to be redeemed, whether as a whole or in part, are to be surrendered for payment of the Redemption Price at the designated office of the Registrar at an address specified, (10) the name and telephone number of a person designated by the Registrar to be responsible for such redemption, (11) unless sufficient funds have been set aside by the Issuer for such pu{pose prior to the mailing of the notice of redemption, that such redemption is conditioned upon the deposit of sufficient funds for such purpose on or prior to the date set for redemption, and (12) any other conditions that must be satisfied prior to such redemption. The Issuer may provide that a redemption will be contingent upon the occurrence of certain conditions and that if such conditions do not occur the notice of redemption will be rescinded, provided notice of rescission shall be mailed in the manner described above to all affected Bondholders not later than three business days prior to the date of redemption. SECTION 3.04. REDEMPTION OF PORTIONS OF BONDS. Any Bond which is to be redeemed only in part shall be surrendered at any place of payment specified in the notice of redemption (with due endorsement by, or written instrument of transfer in form satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Issuer shall execute and the Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds, of any authorized denomination, as requested by such Holder in an aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bonds so surrendered. SECTION 3.05. PAYMENT OF REDEEMED BONDS. Notice of redemption having been given substantially as aforesaid, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Issuer shall default in the payment of the Redemption Price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Registrar and/or Paying Agent at the appropriate Redemption Price, plus accrued interest. Al1 Bonds which have been redeemed shall be cancelled and destroyed by the Registrar and shall not be reissued. 23 SECURITY; FUNDS'"H9,^T^T1S oF THE ISSUERS SECTION 4.01. BONDS NOT TO BE INDEBTEDNESS OF ISSUER. The Bonds shall not be or constitute general obligations or indebtedness of the Issuer as "bonds" within the meaning of any constitutional or statutory provision, but shall be special obligations of the Issuer, payable solely from the Pledged Funds and from amounts budgeted and appropriated by the Issuer from Non-Ad Valorem Revenues in accordance with Section 4.06 hereof. No Holder of any Bond shall ever have the right to compel the exercise of any ad valorem taxing power to pay such Bond, or be entitled to payment of such Bond from any moneys of the Issuer except from the Pledged Funds and the Non-Ad Valorem Revenues in the manner and to the extent provided herein. SECTION 4.02. SECURITY FOR BONDS. The payment of the principal of or Redemption Price, if applicable, and interest on the Bonds shall be secured forthwith equally and ratably by a pledge of and prior lien upon the Pledged Funds, in addition to the covenant to budget and appropriate Non-Ad Valorem Revenues described in Section 4.06 hereof. The Issuer does hereby irrevocably pledge the Pledged Funds to the payment of the principal of or Redemption Price, if applicable, and interest on the Bonds in accordance with the provisions hereof. The Pledged Funds shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Issuer. SECTION 4.03. CONSTRUCTION FUND. The Issuer covenants and agrees to establish a separate fund, to be known as the "St. Lucie County, Florida Non-Ad Valorem Revenue Bonds, Series 2017 Construction Fund," which shall be used only forpayment of the Costs of the Project. Moneys in the Construction Fund, until applied in payment of any item of the Cost of the Project in the manner hereinafter provided, shall be held in trust by the Issuer and shall be subject to a lien and charge in favor of the Holders of the Bonds and for the further security of such Holders. There shall be paid into the Construction Fund the amounts required to be so paid by the provisions of this Resolution or a Supplemental Resolution. The Issuer covenants that the acquisition, construction and installation of the Project will be completed without delay and in accordance with sound engineering practices. The Issuer shall make disbursements or payments from the Construction Fund to pay the Cost of the Project upon the filing with the Clerk of documents and,/or certificates signed by an Authorized Issuer Officer, stating with respect to each disbursement or payment to be made: (1) the item number of the payment, (2) the name and address of the Person to whom payment is due, (3) the amount to be paid, (4) the purpose, by general classification, for which payment is to be made, and (5) that (A) each obligation, item of cost or expense mentioned therein has been properly incurred, is in payment of a part of the Cost of the Project and is a proper charge against the Construction Fund and has not been the basis of any previous disbursement or payment, or (B) each obligation, item of cost or expense mentioned therein has been paid by the Issuer, is a reimbursement of a part of the Cost of a Project, is a proper charge against the account of the Construction Fund from which payment is to be made, has not been theretofore reimbursed to the 24 Issuer or otherwise been the basis of any previous disbursement or payment and the Issuer is entitled to reimbursement thereof. The Clerk shall retain all such documents and/or certificates of the Authorized Issuer Officer for seven (7) years from the dates of such documents and/or certificates. The C1erk shall make available the documents and/or certificates at all reasonable times for inspection by any Holder of any of the Bonds or the agent or representative of any Holder of any of the Bonds. Notwithstanding any of the other provisions of this Section 4.03, to the extent that other moneys are not available therefor, amounts in the Construction Fund shall be applied to the payment of principal and interest on Bonds when due. The date of completion of the Project shall be determined by the Authorized Issuer Officer, who shall certiff such fact in writing to the Board. Promptly after the date of the completion of the Project, and after paying or making provisions for the payment of a1l unpaid items of the Cost of such Project, the Issuer shall deposit any balance of moneys remaining in the Construction Fund in such other fund or account established hereunder as shall be determined by the Board, provided the Issuer has received an opinion of Bond Counsel to the effect that such transfer shall not adversely affect the exclusion, if any, of interest on the Bonds from gross income for purposes of federal income taxation. SECTION 4.04. FUNDS AND ACCOUNTS. The Issuer covenants and agrees to establish separate funds to be known as the "St. Lucie County Non-Ad Valorem Revenue Bond Revenue Fund", the "St. Lucie County Non-Ad Valorem Revenue Bond Debt Service Fund" and the "St. Lucie County Non-Ad Valorem Revenue Bond Rebate Fund." Moneys in the aforementioned funds, other than the Rebate Fund, until applied in accordance with the provisions hereof, shall be subject to a prior lien and charge in favor of the Holders of the Bonds for the security of such Holders. The Issuer may at any time and from time to time appoint one or more depositories to hold, for the benefit of the Bondholders, any one or more of the funds and accounts established hereby. Such depository or depositories shall perform at the direction ofthe Issuer the duties of the Issuer in depositing, transferring and disbursing moneys to and from each of such funds and accounts as herein set forth, and all records of such depositary in performing such duties shall be open at all reasonable times to inspection by the Issuer and its agent and employees. Any such depository shall be either the Florida State Board of Administration or a bank or trust company duly authorizedto exercise corporate trust powers and subject to examination by federal or state authority, of good standing, and eligible under the laws of the State to receive funds of the Issuer. SECTION 4.05.FLOW OF FUNDS. (A) The Issuer shall promptly deposit, within two business days after receipt thereof, the Program Revenues into the Revenue Fund. The moneys in the Revenue Fund shall be deposited or credited on or before the last day of each month, commencing in the month immediately following delivery of any of the Bonds to the purchasers thereof, or such later date as hereinafter provided, in the following manner and in the following order of priority: 25 (1) Debt Service Fund. The Issuer shall deposit or credit to the Debt Service Fund from the Revenue Fund the sum which, together with the balance on deposit in said Debt Service Fund (which may include any other lawfully available funds transferred by the Issuer into such Fund), shall equal the interest on all Bonds outstanding accrued and unpaid and to accrue to the end of the then current calendar month. The Issuer shall also deposit or credit to the Debt Service Fund the sum which, together with the balance in said Fund (which may include any other lawfully available funds transferred by the Issuer into such Fund), shall equal the principal amounts on all Bonds Outstanding due and unpaid and that portion of the principal next due which would have accrued on such Bonds during the then-current calendar month if such principal amounts were deemed to accrue monthly (assuming that a year consists of twelve (12) equivalent calendar months having 30 days each) in equal amounts from the next preceding principal payment due date, or, if there be no such preceding principal payment due date from a date one year preceding the due date of such principal amount. Commencing in the month which is one year prior to the first Amortization lnstallment, there shall also be deposited or credited to the Debt Service Fund the sum which, together with the balance in such Fund, shall equal the Amortization Installments on all Term Bonds Outstanding due and unpaid and that portion of the Amortization Installments of all Term Bonds Outstanding next due which would have accrued on such Term Bonds during the then current calendar month if such Amortization Installments were deemed to accrue monthly (assuming that a year consists of twelve (12) equivalent calendar months having 30 days each) in equal amounts from the next preceding Amortization Installment due date, or, if there is no such preceding Amortization Installment due date, from a date one year preceding the due date of such Amortization Installment. Moneys in the Debt Service Fund shall be used to pay interest, principal, Amortization Installments and redemption premiums, if any, on all Outstanding Bonds, on a pro-rata basis, as and when the same become due, whether by redemption or otherwise, and for no other purpose. No further deposit need be made to the Debt Service Fund when the moneys therein are equal to the interest and principal (including Amortization Installments, if any) coming due on the Outstanding Bonds on the next two succeeding Interest Payment Dates. Amounts accumulated in the Debt Service Fund with respect to any Amortization Installment (together with amounts accumulated in the Debt Service Fund with respect to interest, if any, on the Term Bonds for which such Amortization Installment was established) may be applied by the Issuer, on or prior to the sixtieth (60th) day preceding the due date of such Amortization Installment, (a) to the purchase of Term Bonds of the maturity for which such Amortization Installment was established, or (b) to the redemption at the applicable Redemption Prices of such Term Bonds, if then redeemable by their terms. The applicable Redemption Price (or principal amount of maturing Term Bonds) of any Term Bonds so purchased or redeemed shall be deemed to constitute part of the Debt Service Fund until such Amortization Installment date, for the purposes of calculating the amount of such Account. As soon as practicable after the sixtieth (60th) day preceding the due date of any such Amortization Installment, the Issuer shall proceed to call for redemption on such due date, by causing notice to be given as provided in Section 3.03 hereof, Term Bonds of the maturity for which such Amortization Installment 26 was established (except in the case of Term Bonds maturing on an Amortization Installment date) in such amount as shall be necessary to complete the retirement of the unsatisfied balance of such Amortization Installment. The Issuer shall pay out of the Debt Service Fund to the Paying Agent, on or before the day preceding such redemption date (or maturity date), the amount required for the redemption (or for the payment of such Term Bonds then maturing), and such amount shall be applied by the Paying Agent to such redemption (or payment). A11 expenses in connection with the purchase or redemption of Term Bonds shall be paid by the Issuer from the Revenue Fund. (2) Sumlus Funds. The balance of any moneys remaining in the Revenue Fund, if any, after the payments and deposits required by Section 4.05(AX1) above shall be retained therein and applied in the following month as provided in said Section 4.0s(AX1). (B) The Issuer, in its discretion, may use moneys in the Debt Service Fund to purchase or redeem Bonds coming due on the next principal payment date, provided such purchase or redemption does not adversely affect the Issuer's ability to pay the principal or interest coming due on such principal payment date on the Bonds not so purchased or redeemed. (C) At least three (3) business days prior to the date established for payment of any principal of or Amortization Installment, if applicable, or interest on the Bonds, the Issuer shall withdraw from the appropriate account of the Debt Service Fund sufficient moneys to pay such principal or Amortization Installment, if applicable, or interest and deposit such moneys with the Paying Agent. SECTION 4.06. COVENANT TO BT]DGET AND APPROPRIATE; PAYMENT OF BONDS. The Issuer covenants and agrees to appropriate in its annual budget, by amendment, if necessary, from Non-Ad Valorem Revenues amounts sufficient to (A) pay principal of and interest on the Bonds when due, to the extent amounts deposited into the Debt Service Fund pursuant to Section 4.05 hereof are insufficient therefor, and (B) pay all required deposits to the Rebate Fund pursuant to Section 4.07 hereof. Such covenant and agreement on the part of the Issuer to budget and appropriate such amounts of Non-Ad Valorem Revenues shall be cumulative to the extent not paid, and shall continue until such Non-Ad Valorem Revenues or other legally available funds in amounts sufficient to make all such required payments shall have been budgeted, appropriated and actually paid. Notwithstanding the foregoing covenant of the Issuer, the Issuer does not covenant to maintain any services or programs, now provided or maintained by the Issuer, which generate Non-Ad Valorem Revenues. Such covenant to budget and appropriate does not create any lien upon or pledge ofsuch Non-Ad Valorem Revenues, nor does it preclude the Issuer from pledging in the future its Non- Ad Valorem Revenues, nor does it require the Issuer to levy and collect any particular Non-Ad Valorem Revenues, nor does it give the Bondholders a prior claim on the Non-Ad Valorem Revenues as opposed to claims of general creditors of the Issuer. Such covenant to appropriate Non-Ad Valorem Revenues is subject in all respects to the payment of obligations secured by a pledge of such Non-Ad Valorem Revenues heretofore or hereafter entered into (including the 27 payment of debt service on bonds and other debt instruments). However, the covenant to budget and appropriate for the purposes and in the manner stated herein shall have the effect of making available for the payment of the Bonds, in the manner described herein, Non-Ad Valorem Revenues and placing on the Issuer a positive duty to appropriate and budget, by amendment, if necessary, amounts sufficient to meet its obligations hereunder; subject, however, in all respects to the payment of Essential Expenditures. The Issuer covenants and agrees to transfer to the Paying Agent for the Bonds, solely from funds budgeted and appropriated as described in this Section 4.06, at least three business days prior to the date designated for payment of any principal of or interest on the Bonds, sufficient moneys to pay such principal or interest. The Registrar and Paying Agent shall utilize such moneys for payment of the principal and interest on the Bonds when due. SECTION 4.07. REBATE F[IND. The Issuer covenants and agrees to establish a special fund to be known as the "St. Lucie County, Florida Non-Ad Valorem Revenue Bonds, Series 2017 Rebate Fund," which shall be held in trust by the Issuer and used solely to make required rebates to the United States (except to the extent the same may be used to pay Debt Service on the Bonds) and the Bondholders shall have no right to have the same applied for Debt Service on the Bonds. The Issuer agrees to undertake all actions required of it in its arbitrage certificate relating to the Bonds, including, but not limited to: (A) making a determination in accordance with the Code of the amount required to be deposited in the Rebate Fund; (B) depositing the amount determined in clause (A) above into the Rebate Fund; (C) paying on the dates and in the manner required by the Code to the United States Treasury from the Rebate Fund and any other legally available moneys of the Issuer such amounts as shall be required by the Code to be rebated to the United States Treasury; and (D) keeping such records of the determinations made pursuant to this Section 4.04 as shall be required by the Code, as well as evidence of the fair market value of any investments purchased with proceeds of the Bonds. The provisions of the above-described arbitrage certificate may be amended without the consent of any Holder or the Insurer, if any, from time to time as shall be necessary, in the opinion of Bond Counsel, to comply with the provisions of the Code. SECTION 4.08. ISSUAIICE OF OTHER OBLIGATIONS. Except for the Bonds, the Issuer will not (A) issue any additional obligations payable from the Pledged Funds, or (B) issue any additional obligations payable from the Non-Ad Valorem Revenues, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance or other charge against the Non-Ad Valorem Revenues, or any part thereof, except as set out below. No additional indebtedness payable from or secured by Non-Ad Valorem Revenues shall be issued by the Issuer unless the average of the annual Net Non-Ad Valorem Revenues 28 Available For Debt Service for the prior two Fiscal Years equals at least 150% of the Maximum Annual Debt Service on all Debt payable from such Non-Ad Valorem Revenues. In the event any additional obligations are issued for the purpose of refunding any Debt then outstanding, the conditions of this Section 4.08 shall not apply, provided that the issuance of such additional obligations shall result in a reduction of the aggregate Debt Service on the applicable Debt. SECTION 4.09. INVESTMENTS. The Construction Fund, the Revenue Fund and the Debt Service Fund shall be continuously secured in the manner by which the deposit of public funds are authorized to be secured by the laws of the State. Moneys on deposit in the Construction Fund, the Revenue Fund and the Debt Service Fund may be invested and reinvested in Authorized Investments maturing not later than the date on which the moneys therein will be needed for the purposes of such Fund. Any and all income received by the Issuer Construction Fund, the Revenue Fund and the Debt respective Fund. A11 investments shall be valued at accrued interest) and cost. from the investment of moneys in the Service Fund, shall be retained in such the lower of market value (exclusive of Nothing contained in this Resolution shall prevent any Authorized Investments acquired as investments of or security for funds held under this Resolution from being issued or held in book-entry form on the books of the Department of the Treasury of the United States. SECTION 4.10. SEPARATE ACCOUNTS. The moneys required to be accounted for in each of the foregoing funds established herein may be deposited in a single bank account, and funds allocated to the various funds established herein may be invested in a common investment pool, provided that adequate accounting records are maintained to reflect and control the restricted allocation of the moneys on deposit therein and such investments for the various purposes of such funds as herein provided. The designation and establishment of the various funds in and by this Resolution shall not be construed to require the establishment of any completely independent, self-balancing funds as such term is commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of certain revenues for certain purposes and to establish certain priorities for application ofsuch revenues as herein provided. 29 ARTICLE V COVENANTS SECTION 5.01. GENERAL. The Issuer hereby makes the following covenants, in addition to all other covenants in this Resolution, with each and every successive Holder of any of the Bonds so long as any of said Bonds remain Outstanding. SECTION 5.02. ANNUAL BUDGET. The Issuer shall annually prepare and adopt, prior to the beginning of each Fiscal Year, an Annual Budget in accordance with applicable law. Iffor any reason the Issuer shall not have adopted the Annual Budget before the first day of any Fiscal Year, the preliminary budget for such year shall be deemed to be in effect for such Fiscal Year until the Annual Budget for such Fiscal Year is adopted. The Issuer shall provide the Annual Budget to any Holder or Holders of Bonds upon wriffen request. The Issuer shall be permitted to make a reasonable charge for fumishing such information to such Holder or Holders. SECTION 5.03. AI\NUAL AUDIT. The Issuer shall, immediately after the close of each Fiscal Year, cause the books, records and accounts relating to the Issuer to be properly audited by a recognized independent firm of certified public accountants, and shall require such accountants to complete their report of such Annual Audit in accordance with applicable law. Each Annual Audit shall be in conformity with generally accepted accounting principles as applied to governmental entities. The Issuer shall provide the Annual Audit to any Holder or Holders of Bonds upon written request. The Issuer shall be permitted to make a reasonable charge for fumishing such information to such Holder or Holders. SECTION 5.04. FEDERAL INCOME TAXATION COVENANTS. The Issuer covenants with the Holders of the Bonds that it shall not use the proceeds of the Bonds in any manner which would cause the interest on such Bonds to be or become included in gross income for purposes of federal income taxation. The Issuer covenants with the Holders of the Bonds that neither the Issuer nor any Person under its control or direction will make any use of the proceeds of the Bonds (or amounts deemed to be proceeds under the Code) in any manner which would cause the Bonds to be "arbitrage bonds" within the meaning of the Code, and neither the Issuer nor any other Person shall do any act or fail to do any act which would cause the interest on the Bonds to become subject to inclusion within gross income for purposes of federal income taxation. The Issuer hereby covenants with the Holders of the Bonds that it will comply with all provisions of the Code necessary to maintain the exclusion from gross income of interest on the Bonds for purposes of federal income taxation, including, in particular, the payment of any amount required to be rebated to the U.S. Treasury pursuant to the Code. 30 ARTICLE VI DEFAULTS AND REMEDIES SECTION 6.01. EVENTS OF DEFAULT. The following events shall each constifute an "Event of Default": (A) Default shall be made in the payment of the principal of, Amortization Installment, redemption premium, if any, or interest on any Bond when due. In determining whether a payment default has occurred, no effect shall be given to payment made under the Bond Insurance Policy, if any. (B) There shall occur the dissolution or liquidation of the Issuer, or the filing by the Issuer of a voluntary petition in bankruptcy, or the commission by the Issuer of any act of bankruptcy, or adjudication of the Issuer as a bankrupt, or assignment by the Issuer for the benefit of its creditors, or appointment of a receiver for the Issuer, or the entry by the Issuer into an agreement of composition with its creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Issuer in any proceeding for its reorganization instituted under the provisions of the Federal Bankruptcy Act, as amended, or under any similar act in any jurisdiction which may now be in effect or hereafter enacted. (C) The Issuer shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or in this Resolution on the part of the Issuer to be performed, and such default shall continue for a period of 30 days after written notice of such default shall have been received from the Holders of not less than 25o/o of the aggregate principal amount of Bonds Outstanding. Notwithstanding the foregoing, the Issuer shall not be deemed to be in default hereunder if such default can be cured within a reasonable period of time and if the Issuer in good faith institutes appropriate curative action and diligently pursues such action until default has been corrected; provided, however, no such curative action shall exceed 60 days without the prior written consent of the Insurer, if any. SECTION 6.02. REMEDIES. Any Holder of Bonds issued under the provisions of this Resolution or any trustee or receiver acting for such Bondholders may either at law or in equity, by suit, action, mandamus or other proceedings in any court of competent jurisdiction, protect and enforce any and all rights under the Laws of the State of Florida, or granted and contained in this Resolution, and may enforce and compel the performance of all duties required by this Resolution or by any applicable statutes to be performed by the Issuer or by any off,rcer thereof; provided, however, that no Holder, trustee or receiver shall have the right to declare the Bonds immediately due and payable. The Holder or Holders of Bonds in an aggregate principal amount of not less than 25o/o of the Bonds then Outstanding may by a duly executed certificate in writing appoint a trustee for Holders of Bonds issued pursuant to this Resolution with authority to represent such Bondholders in any legal proceedings for the enforcement and protection of the rights of such Bondholders, and such certihcate shall be executed by such Bondholders or their duly authorized attorneys or representatives, and shall be filed in the office of the Clerk. Notice of such appointment, together with evidence of the requisite signatures of the Holders of not less than 31 25o/o in aggregate principal amount of Bonds Outstanding and the trust instrument under which the trustee shall have agreed to serve, shall be filed with the Issuer and the trustee and notice of such appointment shall be given to all Holders of Bonds in the same manner as notices of redemption are given hereunder. After the appointment of the first trustee hereunder, no further trustees may be appointed; however, the Holders of a majority in aggregate principal amount of all the Bonds then Outstanding may remove the trustee initially appointed and appoint a successor and subsequent successors at any time. SECTION 6.03. DIRECTIONS TO TRUSTEE AS TO REMEDIAL PROCEEDINGS. The Holders of a majority in principal amount of the Bonds then Outstanding (or the Insurer, if any, insuring any then Outstanding Bonds so long as such Insurer is not in payment default under its Bond Insurance Policy) have the right, by an instrument or concurrent instruments in writing executed and delivered to the trustee, to direct the method and place of conducting all remedial proceedings to be taken by the trustee hereunder with respect to the Bonds owned by such Holders or insured by the Insurer, if any, provided that such direction shall not be otherwise than in accordance with law or the provisions hereof (including the prohibition contained in Section 6.02 hereof on declaring the Bonds immediately due and payable), and that the trustee shall have the right to decline to follow any direction which in the opinion of the trustee would be unjustly prejudicial to Holders of Bonds not parties to such direction. SECTION 6.04. REMEDIES CUMULATM. No remedy herein conferred upon or reserved to the Bondholders is intended to be exclusive of any other remedy or remedies, and each and every such remedy shall be cumulative, and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. SECTION 6.05. WAMR OF DEFAULT. No delay or omission of any Bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default, or an acquiescence therein; and every power and remedy given by Section 6.02 to the Bondholders may be exercised from time to time, and as often as may be deemed expedient. SECTION 6.06. APPLICATION OF MONEYS AFTER DEFAULT. If an Event of Default shall happen and shall not have been remedied, the Issuer or a trustee or receiver appointed for the purpose shall apply all moneys received from the Issuer for payment of the Bonds as follows and in the following order: (A) To the payment of the reasonable and proper charges, expenses and liabilities of the trustee or receiver and Registrar hereunder; (B) To the payment of the interest and principal or Redemption Price, if applicable, then due on the Bonds, as follows: (1) Unless the principal of all the Bonds shall have become due and payable, all such moneys shall be applied: 32 FIRST:to the payment to the Persons entitled thereto of all installments of interest then due, in the order of the maturity of such installments, and, if the amount available shall not be sufficient to pay in fulI any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, without any discrimination or preference; SECOND: to the payment to the Persons entitled thereto of the unpaid principal of any of the Bonds which shall have become due at maturity or upon mandatory redemption prior to maturity (other than Bonds called for redemption for the payrnent of which moneys are held pursuant to the provisions of Section 8.01 of this Resolution), in the order of their due dates, with interest upon such Bonds from the respective dates upon which they became due, and, if the amount available shall not be sufficient to pay in full Bonds due on any particular date, together with such interest, then to the payment first of such interest, ratably according to the amount of such interest due on such date, and then to the payment of such principal, ratably according to the amount of such principal due on such date, to the Persons entitled thereto without any discrimination or preference; and THIRD: to the payment of the Redemption Price of any Bonds called for optional redemption pursuant to the provisions of this Resolution. (2) If the principal of all the Bonds shall have become due and payable, all such moneys shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, with interest thereon as aforesaid, without preference or priority of principal over interest or of interest over principal, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Persons entitled thereto without any discrimination or preference. (c)To the payment of all amounts owed to the lnsurer not covered bV (A) or (B) above. SECTION 6.07. CONTROL BY INSURER. If the Bonds or any portion thereof (the "Insured Bonds") are insured by the Bond Insurance Policy, to the extent the Insurer makes any payment of principal of or interest on Insured Bonds in accordance with the Bond lnsurance Policy, such Insurer shall become subrogated to the rights of the recipients of such payments in accordance with the terms of the Bond Insurance Policy. Upon the occurrence and continuance of an Event of Default, the Insurer, if it shall not be in payment default under the Bond Insurance Policy, shall be deemed to be the sole owner of such Insured Bonds for purposes of (A) directing and controlling the enforcement of all rights and remedies with respect to the Insured Bonds, including any waiver of an Event of Default and removal of any trustee, and (B) exercising any voting right or privilege or giving any consent or direction or taking any other action that the Holders of such Insured Bonds are entitled to take pursuant to this Article VI. No provision JJ expressly recognizing or granting rights in or to the Insurer shall be modified without the consent of the Insurer. The Insurer's rights under this Section 6.07 shall be suspended during any period in which the Insurer is in default in its payment obligations under the Bond Insurance Policy (except to the extent of amounts previously paid by the Insurer and due and owing to it) and shall be of no force or effect if the Bond Insurance Policy is no longer in effect or if the Insurer asserts that the Bond Insurance Policy is not in effect or if the Insurer waives such rights in writing. The rights granted to the Insurer under this Section 6.07 are granted in consideration of the Insurer issuing the Bond Insurance Policy. The Issuer shall provide the Insurer immediate notice of any Event of Default described in Section 6.01(A) hereof and notice of any other Event of Default occurring hereunder within 30 days of the occurrence thereof. The Insurer hereunder shall be considered a third-party beneficiary to the Resolution with respect to the Insured Bonds. 34 ARTICLE VII SUPPLEMENTAL RESOLUTIONS SECTION 7.01. SUPPLEMENTAL RESOLUTION WITHOUT BONDHOLDERS' CONSENT. The Issuer, from time to time and at any time, may adopt such Supplemental Resolutions without the consent of the Bondholders (which Supplemental Resolution shall thereafter form apart hereof) for any of the following purposes: (A) To cure any ambiguity or formal defect or omission or to correct any inconsistent provisions in this Resolution or to clarify any matters or questions arising hereunder. (B) To grant to or confer upon the Bondholders any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Bondholders. (C) To add to the conditions, limitations and restrictions on the issuance of Bonds under the provisions of this Resolution other conditions, limitations and restrictions thereafter to be observed. (D) To add to the covenants and agreements of the Issuer in this Resolution other covenants and agreements thereafter to be observed by the Issuer or to surrender any right or power herein reserved to or conferred upon the Issuer. (E) To specify and determine the matters and things referred to in Section 2.01 hereof and also any other matters and things relative to such Bonds which are not contrary to or inconsistent with this Resolution as theretofore in effect, or to amend, modifu or rescind any such authorization, specification or determination at any time prior to the first delivery of the Bonds. (F) To make any other change that, in the reasonable opinion of the Issuer, would not materially adversely affect the interests of the Holders of the Bonds. In making such determination, the Issuer shall not take into consideration the Bond Insurance Policy, if any. SECTION 7.02. SUPPLEMENTAL RESOLUTION WITH BONDHOLDERS' AND INSURER'S CONSENT. Subject to the terms and provisions contained in this Section 7.02 and Sections 7.01 and 7.03 hereof, the Holder or Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have the right, from time to time, anything contained in this Resolution to the contrary notwithstanding, to consent to and approve the adoption of such Supplemental Resolutions hereto as shall be deemed necessary or desirable by the Issuer for the purpose of supplementing, modiffing, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Resolution; provided, however, that if such modification or amendment will, by its terms, not take effect so long as any Bonds of any specified maturity remain Outstanding, the consent of the Holders of such Bonds shall not be required and such Bonds shall not be deemed to be Outstanding for the purpose of any calculation of Outstanding Bonds under this Section 7.02. Any Supplemental Resolution which is adopted in accordance with the provisions of this Section 7.02 shall also require the written consent of the Insurer, if any, of Bonds which are Outstanding at the time 35 such Supplemental Resolution shall take effect. No Supplemental Resolution may be approved or adopted which shall permit or require, without the consent of all affected Bondholders, (A) an extension of the maturity of the principal of or the payment of the interest on any Bond issued hereunder, (B) reduction in the principal amount of any Bond or the Redemption Price or the rate of interest thereon, (C) a preference or priority of any Bond or Bonds over any other Bond or Bonds, or (D) a reduction in the aggregate principal amount of the Bonds required for consent to such Supplemental Resolution. Nothing herein contained, however, shall be construed as making necessary the approval by Bondholders or the Insurer of the adoption of any Supplemental Resolution as authorized in Section 7.01 hereof. If at any time the Issuer shall determine that it is necessary or desirable to adopt any Supplemental Resolution pursuant to this Section 7 .02, the Clerk shall cause the Registrar to give notice of the proposed adoption of such Supplemental Resolution and the form of consent to such adoption to be mailed, postage prepaid, to all Bondholders at their addresses as they appear on the registration books. Such notice shall briefly set forth the nature of the proposed Supplemental Resolution and shall state that copies thereof are on file at the offices of the Clerk and the Registrar for inspection by all Bondholders. The Issuer shall not, however, be subject to any liability to any Bondholder by reason of its failure to cause the notice required by this Section 7.02 to be mailed, and any such failure shall not affect the validity of such Supplemental Resolution when consented to and approved as provided in this Section 7.02. Whenever the Issuer shall deliver to the Clerk an instrument or instruments in writing purporting to be executed by the Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding, which instrument or instruments shall refer to the proposed Supplemental Resolution described in such notice and shall specifically consent to and approve the adoption thereof in substantially the form of the copy thereof referred to in such notice, thereupon, but not otherwise, the Issuer may adopt such Supplemental Resolution in substantially such form, without liability or responsibility to any Holder of any Bond, whether or not such Holder shall have consented thereto. If the Holders of not less than a majority in aggregate principal amount of the Bonds Outstanding at the time of the adoption of such Supplemental Resolution shall have consented to and approved the adoption thereof as herein provided, no Holder of any Bond shall have any right to object to the adoption of such Supplemental Resolution, or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the Issuer from adopting the same or from taking any action pursuant to the provisions thereof. Upon the adoption of any Supplemental Resolution pursuant to the provisions of this Section 7.02, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the Issuer and all Holders of Bonds then Outstanding shall thereafter be determined, exercised and enforced in all respects under the provisions of this Resolution as so modified and amended. SECTION 7.03. AMENDMENT WITH CONSENT OF INSURER ONLY. For purposes of amending this Resolution pursuant to Section 7.02 hereof, so long as the Insurer is 36 not in default in its payment obligations under the Bond Insurance Policy (except to the extent of amounts previously paid by the Insurer and owing to it) the Insurer, if any, of Bonds shall be considered the Holder of such Insured Bonds which it has insured. The consent of the Holders of such Insured Bonds shall not be required if the Insurer of such Insured Bonds shall consent to the amendment as provided by this Section 7.03. Prior to adoption of any amendment made pursuant to this Section 7.03, notice of such amendment shall be delivered to the Rating Agencies then rating the Bonds. Upon filing with the Clerk of evidence of such consent the Insurer as aforesaid, the Issuer may adopt such Supplemental Resolution. After the adoption by the Issuer of such Supplemental Resolution, notice thereof shall be mailed in the same manner as notices of an amendment under Section 7.02bereof. 37 ARTICLE VIII DEFEASANCE SECTION 8.01. DEFEASANCE. If the Issuer shall pay or cause to be paid or there shall otherwise be paid to the Holders of any Bonds, the principal and interest or Redemption Price due or to become due thereon, at the times and in the manner stipulated therein and in this Resolution, all covenants, agreements and other obligations of the Issuer to the holders of such Bonds shall thereupon cease, terminate and become void and be discharged and satisfied. In such event, the Paying Agent shall pay over or deliver to the Issuer all money or securities held by it pursuant to this Resolution which are not required for payment or redemption of any Bonds not theretofore surrendered for such payment or redemption. Any Bonds or interest installments appertaining thereto shall be deemed to have been paid within the meaning of this Section 8.01 if (i) in case any such Bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such Bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (ii) there shall have been deposited in irrevocable trust with a banking institution or trust company by or on behalf of the Issuer either moneys in an amount which shall be sufficient, or Refunding Securities verified by an independent certified public accountant to be in such amount that the principal of and the interest on which, when due, will provide moneys which, together with the moneys, if any, deposited with such banking institution or trust company at the same time shall be sufficient, to pay the principal of, Redemption Price, if applicable and interest due and to become due on said Bonds on and prior to the redemption date or maturity date thereof, as the case may be. Except as hereafter provided, neither the Refunding Securities nor any moneys so deposited with such banking institution or trust company nor any moneys received by such bank or trust company on account of principal of or interest on said Refunding Securities shall be withdrawn or used for any purpose other than, and all such moneys shall be held in trust for and be applied to, the payment, when due, of the principal of or Redemption Price of the Bonds for the payment of which they were deposited and the interest accruing thereon to the date of redemption or maturity, as the case may be; provided, however, the Issuer may substitute new Refunding Securities and moneys for the deposited Refunding Securities and moneys if the new Refunding Securities and moneys are sufficient to pay the principal of and interest on or Redemption Price, if applicable, of the refunded Bonds. If Bonds are not to be redeemed or paid within 60 days after any such defeasance described in this Section 8.01, the Issuer shall cause the Registrar to mail a notice to the Holders of such Bonds that the deposit required by this Section 8.01 of moneys or Refunding Securities has been made and said Bonds are deemed to be paid in accordance with the provisions of this Section 8.01 and stating such maturity date upon which moneys are to be available for the payment of the principal of and interest on or redemption price of said Bonds. Failure to provide said notice shall not affect the Bonds being deemed to have been paid in accordance with the provisions of this Section 8.01. Nothing herein shall be deemed to require the Issuer to call any of the Outstanding Bonds for redemption prior to maturity pursuant to any applicable optional redemption provisions, or to 38 impair the discretion of the Issuer in determining whether to exercise any such option for early redemption. Notwithstanding anything herein to the contrary, in the event that the principal of or interest due on the Bonds shall be paid by the Insurer, such Bonds shall remain Outstanding, shall not be defeased or otherwise satisfied and shall not be considered paid by the Issuer, and all covenants, agreements and other obligations of the Issuer to the Bondholders shall continue to exist and the Insurer shall be subrogated to the rights of such Bondholders. 39 ARTICLE IX MISCELLANEOUS SECTION 9.01. SALE OF BONDS. Upon the delivery to the Chairman and Clerk of a Purchase Contract substantially in the form of Exhibit A attached hereto, evidencing: (A) (B) (c) annum; and (D) SECTION 9.02. CERTIFICATE. Bonds in an aggregate principal amount not exceeding $56,000,000; A final maturity of such Bonds of not later than October 1,2042; A true interest cost with respect to the Bonds of not greater than 5.00% per An underwriting discount of not greater than $3.50 per $1,000 of Bonds; the Bonds shall be sold to the Underwriters pursuant to the Purchase Contract at the purchase price provided therein (including any original issue discounts or original issue premiums), all terms and conditions set forth in said Purchase Contract being hereby approved. Upon compliance with the foregoing, the Chairman is hereby authorized and directed to execute said Purchase Contract and to deliver the same to the Underwriters. OFFICIAL STATEMENT; CONTINUING DISCLOSURE (A) The form, terms and provisions of the Official Statement, dated the date of execution of the Purchase Contract, in substantially the form attached hereto as Exhibit B, which shall include the terms and provisions set forth in the executed version of the Purchase Contract, relating to the Bonds, be and the same hereby are approved with respect to the information therein contained. The Chairman and the County Administrator, upon execution of the Purchase Contract described above, are hereby authorized and directed to execute and deliver said Official Statement in the name and on behalf of the County, and thereupon to cause such Official Statement to be delivered to the Underwriter with such changes, amendments, omissions and additions as may be approved by the Chairman. The use of the Preliminary Official Statement, in the form attached hereto as Exhibit B, in the marketing of the Bonds is hereby authorized, and the Official Statement, including any such changes, amendments, modifications, omissions and additions as approved by the Chairman, and the information contained therein are hereby authorized to be used in connection with the sale of the Bonds to the public. Execution by the Chairman and the County Administrator of the Official Statement shall be deemed to be conclusive evidence of approval of such changes, amendments, modifications, omissions and additions. The Chairman and County Administrator are hereby authorized to deem the Preliminary Official Statement "final," within the meaning of Securities and Exchange Commission Rule l5c2-12, except for permitted omissions as described therein. (B) In order to enable the Underwriters to comply with the provisions of SEC Rule l5c2-12 relating to secondary market disclosure, the Chairman is hereby authorized and directed to execute and deliver the Continuing Disclosure Certificate in the name and on behalf of the 40 County substantially in the form attached hereto as Exhibit C, with such changes, amendments, omissions and additions as shall be approved by the Chairman, his execution and delivery thereof being conclusive evidence of such approval. SECTION 9.03. APPOINTMENT OF REGISTRAR AND PAYING AGENT. U.S. Bank National Association, Jacksonville, Florida, is hereby designated Registrar and Paying Agent for the Bonds. The Chairman and the Clerk are hereby authorized to enter into any agreement which may be necessary to effect the transactions contemplated by this Section 9.03. SECTION 9.04. PURCHASE OF BOND INSURANCE POLICY. Pursuant to Section 2.01 hereof, the Chairman, upon advice of the County's Financial Advisor, is delegated the authority to determine whether a Bond Insurance Policy should be purchased with respect to all or a portion of the Bonds. In connection therewith, in the event bond insurance is so utilized, the Issuer hereby authorizes and directs the Chairman to execute and deliver a standard insurance agreement and a bond insurance commitment, and the Clerk to attest the same under the official seal of the Issuer. All of the provisions of the insurance agreement, when executed and delivered by the Issuer as authorized herein and when duly authorized, executed and delivered by the Insurer, shall be deemed to be a part of this Resolution as fully and to the same extent as if incorporated verbatim herein. SECTION 9.05. GENERAL AUTHORITY. The members of the Board of County Commissioners of the Issuer and the officers, attorneys and other agents or employees of the Issuer and the Clerk are hereby authorized to do all acts and things required of them by this Resolution, or desirable or consistent with the requirements hereof, including the execution of such documents necessary to establish a book-entry system of registration with respect to the Bonds, for the fulI puncfual and complete performance hereof or thereof. Each member, employee, attorney and officer of the Issuer is hereby authorized and directed to execute and deliver any and all papers and instruments and to be and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereunder. The Chairman and/or the Clerk are hereby authorized to execute such tax forms or agreements as shall be necessary to effect the transactions contemplated hereby, including designating Bond Counsel to assist or act as agent with respect thereto. SECTION 9.06. SEVERABILITY OF INVALID PROVISIONS. If any one or more of the covenants, agreements or provisions of this Resolution shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements and provisions of this Resolution and shall in no way affect the validity of any of the other covenants, agreements or provisions hereof or of the Bonds issued hereunder. SECTION 9.07. REPEAL OF INCONSISTENT RESOLUTIONS. AII ordinances, resolutions or parts thereof in conflict herewith are hereby superseded and repealed to the extent of such conflict. 41 SECTION 9.08. EFFECTIVE DATE. This Resolution shall become effective immediately upon its passage and adoption. 42 PASSED AND DULY ADOPTED this 16m day of May,2Ol7. ST. LUCIE COUNTY, FLORIDA Chairman, Board of County Commissioners (SEAL) ATTEST: Clerk of the Circuit Court, ex officio Clerk of the Board of County Commissioners 43 EXHIBITS INTENTIONALLY OMITTED APPENDIX D FORM OF BOND COUNSEL OPINION ITHIS PAGE INTENTIONALLY LEFT BLANK] Upon deliaery of the Series 2077 Bonds P.A., Tampa, Florida, Bond Counsel, proposes 2017 Bonds in substantially the following form: definitiae form, Nabors, Giblin I Nickerson, render its opinion with respect to the Series in to hme 29,2017 Board of County Commissioners of St. Lucie County, Florida Commissioners: We have examined a record of proceedings relating to the issuance of $46,865,000 Non- Ad Valorem Revenue Bonds, Series 2017 (the "Bonds") of St. Lucie County, Florida (the "Count5r"). The Bonds are issued under the authority of the Laws of the State of Florida, including Chapter 125, Florida Statutes, and other applicable provisions of law, and pursuantto Resolution No. 17-1 10, adopted by the Board of County Commissioners of the County on May 16, 2017 (the "Resolution"). The Bonds are dated and shall bear interest from their date of delivery, except as otherwise provided in the Resolution. The Bonds will mature on the dates and in the principal amounts and will bear interest at the respective rates per annum, as provided in the Resolution and set forth in the Bond Purchase Contract executed in connection with the sale of the Bonds (the "Purchase Contract"). Interest on the Bonds shall be payable on each April 1 and October I of each year, commencing October 1,2017. The Bonds are subject to redemption prior to maturity in accordance with the Resolution and as set forth in the Purchase Contract. The Bonds are issued for the principal purpose of providing funds which will be sufficient to (l) finance the acquisition and construction of improvements to the Tradition Field Sports Complex, and (2) pay related costs of issuance as more particularly described in the Resolution. As to questions of fact material to our opinion, we have relied upon the representations of the County contained in the Resolution, and in the certified proceedings relating thereto and to the issuance of the Bonds and other certifications of public officials furnished to us in connection therewith, without undertaking to verifu the same by independent investigation. Furthermore, we have assumed continuing compliance with the covenants and agreements contained in the Resolution. We have not undertaken an independent audit, examination, investigation or inspection of the matters described or contained in any agreements, documents, certificates, D-1 Board of County Commissioners of St. Lucie County, Florida Page 2 Jlune 29,2017 representations and opinions relating to the Bonds, and have relied solely on the facts, estimates and circumstances described and set forth therein. In our examination of the foregoing, we have assumed the genuineness of signatures on all documents and instruments, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. Based on the foregoing, under existing law, we are of the opinion that: l. The County is a duly created and validly existing political subdivision of the State of Florida. 2. The County has the right and power under the Constitution and Laws of the State of Florida to adopt the Resolution, and the Resolution has been duly and lawfully adopted by the County, is in full force and effect in accordance with its terms and is valid and binding upon the County and enforceable in accordance with its terms, and no other authorization for the Resolution is required. 3. The Resolution creates the valid pledge which it purports to create of the Pledged Funds (as such term is defined in the Resolution), subject to the provisions of the Resolution permitting the application thereof for the purposes and on the terms and conditions set forth in the Resolution. The County is duly authorized and entitled to issue the Bonds, and the Bonds have been duly and validly authorized and issued by the County in accordance with the Constitution and Laws of the State of Florida and the Resolution. The Bonds constitute valid and binding obligations of the County as provided in the Resolution, are enforceable in accordance with their terms and the terms of the Resolution, and are entitled to the benefits of the Resolution and the laws pursuant to which they are issued. The Bonds do not constitute a general indebtedness of the County or the State of Florida or any agency, department or political subdivision thereof, or a pledge of the faith and credit of such entities, but are solely payable from the Pledged Funds and from Non-Ad Valorem Revenues (as defined in the Resolution) budgeted and appropriated in the manner and to the extent provided in the Resolution. No holder of the Bonds shall ever have the right to compel the exercise of any ad valorem taxing power of the County or the State of Florida or any political subdivision, agency or department thereof to pay the Bonds. 4. Under existing statutes, regulations, rulings and court decisions, the interest on the Bonds (a) is excluded from gross income for federal income tax purposes and (b) is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, it should be noted that with respect to certain corporations, such interest is taken into account in determining adjusted current earnings for the purpose of computing the alternative minimum tax. The opinions set forth in this paragraph are subject to the condition that the County comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continues to be) excluded from gross income for federal income tax purposes. Failure to comply with cer{ain of such requirements could cause the interest on the Bonds to be so included in gross income retroactive to the date of issuance of the Bonds. The County has covenanted in the D-2 Board of County Commrsstoners of St. Lucie County, Florida Page 3 Jtne 29,2017 Resolution to comply with all such requirements. Ownership of the Bonds may result in collateral federal tax consequences to certain taxpayers. We express no opinion regarding such federal tax consequences arising with respect to the Bonds. The opinions expressed in paragraphs 2 and 3 hereof are qualified to the extent that the enforceability of the Resolution and the Bonds may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors' rights generally, or by the exercise ofjudicial discretion in accordance with general principles of equity. The opinions set forth herein are expressly limited to, and we opine only with respect to, the laws of the State of Florida andthe federal income tax laws of the United States of America. The only opinions rendered hereby shall be those expressly stated as such herein, and no opinion shall be implied or infered as a result of anything contained herein or omitted herefrom. This opinion is given as of the date hereof and we assume no obligation to update, revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur. We have examined the form of the Bonds and, in our opinion, the form of the Bonds is regular and proper. Very truly yours, D-3 ITHIS PAGE INTENTIoNALLY LEFT BLANK] APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE [THIS PAGE INTENTIoNALLY LEFT BLANK] CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by St. Lucie County, Florida (the "Issuer") in connection with the issuance of its $46,865,000 Non-Ad Valorem Revenue Bonds, Series 2017 (the "Series 2077 Bonds"). The Series 2017 Bonds are being issued pursuant to the authority and in compliance with the Constitution of the State of Florid4 Chapter 125, Florida Statutes, Section 288.11631, Florida Statutes and other applicable provisions of law, and pursuant to Resolution No. 17-110 adopted by the Board of County Commissioners of the Issuer (the "Board") on May 16,2017, as amended and supplemented from time to tirne (the "Resolution"). Capitalized terms used but not otherwise defined herein shall have the same meaning as when used in the Resolution unless the context would clearly indicate otherwise. The Issuer covenants and agrees as follows: SECTION 1. PURPOSE OF THE DISCLOSURE CERTIFICATE. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the holders and Beneficial Owners (defined below) of the Series 2017 Bonds and in order to assist the Participating Underwriters in complying with the continuing disclosure requirements of the Rule (defined below). SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Resolution which apply to any capitalized term used in this Disclosure Certificate, unless otherwise defined herein, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Series 2077 Bonds (including persons holding Series 2077 Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Series 2017 Bonds for federal income tax purposes. "Dissemination Agent" shall mean the Issuer, ot ar.y successor Dissemination Agent designated in writing by the Issuer, and which has filed with the Issuer a written acceptance of such designation. "EMMA" shall mean the Electronic Municipal Market Access web portal of the MSRB, located at http://www.emma.msrb.org. "Event of Bankruptcy" shall be considered to have occurred when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an E-1 Obligated Person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Obligated Petson, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Obligated Person. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate. "MSRB" shall mean the Municipal Securities Rulemaking Board. "Obligated Person" shall mean any person, including the Issuer, who is either generally or through an enterprise, fund, or account of such person committed by contract or other arrangement to support payment of all, or part of the obligations on the Bonds (other than providers of municipal bond insurance, letters of credit, or other liquidity or credit facilities). "Participating Underwriters" shall mean the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Rule" shall mean the continuing disclosure requirements of Rule L5c2-1.2 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1,934, as the same may be amended from time to time. SECTION 3. PROVISION OF ANNUAL REPORTS. (^) The Issuer shall, or shall cause the Dissemination Agent to, not later than July 30th after the end of the Issuer's last fiscal year (presently ends September 30), commencing with the report for the 2016-2017 fiscal year, provide to EMMA an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; p_Ievided that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report only if they are not available by that date so long as they are provided when they become available. If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5. E-2 (b) Not later than fifteen (15) Business Days prior to said date, the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). If the Issuer is unable to provide to EMMA an Annual Report by the date required in subsection (a), the Issuer shall send a notice to EMMA, in substantially the form attached as Exhibit A. accompanied by a cover sheet in the form set forth as Exhibit B. (.) The Dissemination Agent shall, if the Dissemination Agent is other than the Issuer, file a report with the Issuer certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided to EMMA. SECTION 4. CONTENT OF ANNUAL REPORTS. The Issuer's Annual Report shall contain or include by reference the following: (r) The audited financial statements of the Issuer for the prior fiscal year, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the Issuer's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) An update of the information contained in the tables from the Official Statement entitled NON-AD VALOREM REVENUES OF ST. LUCIE, COUNTY, FLORIDA; and ST. LUCIE COUNTY, FLORIDA NON-AD VALOREM REVENUE DEBT SERVICE SCHEDULE, in each case, presented in a mcrnner consistent with the presentation of such information in the Official Statement. Relating to information to be provided to EMMA, the information provided under Section 4(b) may be included by specific reference to other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from EMMA. The Issuer shall clearly identify each such other document so included by reference. SECTION 5. REPORTING OF SIGNIFICANT EVENTS. Pursuant to the provisions of this Section 5, the Issuer shall give, or cause to be given, notice with EMMA of the occurrence in a timely manner not in excess of ten (10) business days after the occurrence of any of the following events with respect to the Series 2077 Bonds, with the exception of the event described in number 15 below, which notice shall be given in a timely manner: 1. Principal and interest payment delinquencies; E-3 2. 3. 4. 5. 6. 7. B. 9. 10. 11.. 1,2. 13. Non-payment related defaults, if material; Unscheduled draws on debt service reserves reflecting financial difficulties; Unscheduled draws on credit enhancements reflecting financial difficulties; Substitution of credit or liquidity providers, or their failure to perform; Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Series 2017 Bonds, or other material events affecting the tax status of the Series 2077 Bonds; Modifications to rights of the holders of the Series 2017 Bonds, if material; Series 2017 Bond calls, if material, and tender offers; Defeasances; Release, substitution, or sale of property securing repayment of the Series 2017 Bonds, if material; Ratings changes; An Event of Bankruptcy or similar event of an Obligated Person; The consummation of a merger, consolidation, or acquisition involving the Issuer or the sale of all or substantially all of the assets of the Issuer, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and Appointment of a successor or additional trustee or paying agent or the change of name of a trustee or paying agen! if material; and Notice of any failure on the part of the Issuer to meet the requirements of Section 3 hereof. 1,4. 15. SECTION 6. TERMINATION OF REPORTING OBLIGATION. The Issuer's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Series 2077 Bonds, so long as there is no remaining liability of the Issuer, or if the Rule is repealed or no longer in effect. If such terrnination occurs E-4 prior to the final maturity of the Series 2077 Bonds, the Issuer shall give notice of such termination in the same manner as for a Listed Event under Section 5. SECTION 7. DISSEMINATION AGENT. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agen! with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be the Issuer. SECTION 8. AMENDMENT; WAIVER. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4, or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or stafus of the Issuer, or the type of business conducted; (b) The undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the Series 2017 Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either (i) is approved by the holders or Beneficial Owners of the Series 2017 Bonds in the same manner as provided in the Resolution for amendments to the Resolution with the consent of holders or Beneficial Owners, or (ii) does not in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or Beneficial Owners of the Series 2017 Bonds. Notwithstanding the foregoing, the Issuer shall have the right to adopt amendments to this Disclosure Certificate necessary to comply with modifications to and interpretations of the provisions of the Rule as alnounced by the Securities and Exchange Commission from time to time. In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the Issuer. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the sarne manner as for a Listed Event under Section 5, and (ii) the Annual Report for the year in which the change is made should present a comparison (in E-5 narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. SECTION 9. ADDITIONAL INFORMATION. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer, as applicable, shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. DEFAULT. The continuing disclosure obligations of the Issuer set forth herein constitute a contract with the holders of the Series 2017 Bonds. In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Series 2017 Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer, as applicable, to comply with its obligations under this Disclosure Certificate; provided, howevet, the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with the provisions of this Disclosure Certificate shall be an action to compel performance. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Resolution. SECTION 11. DUTIES, IMMUNITIES AND LIABILITIES OF DISSEMINATION AGENT. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorney's fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Series 2017 Bonds. E-6 SECTION 12. BENEFICIARIES. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent the Participating Underwriters and holders and Beneficial Owners from time to time of the Series 2017 Bonds, and shall create no rights io *y other person or entity. Dated: June 29,201,7 ST. LUCIE COUNTY, FLORIDA Name: Title: Chairman ATTEST: Clerk E-7 EXHIBIT A NOTICE TO REPOSITORY OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: St. Lucie County, Florida Obligated Person: Name(s) of Bond Issue(s): St. Lucie County, Florida Non-Ad Valorem Revenue Bonds, Series 2017 Date(s) of Issuance: Iune 29,2017 Date(s) of Disclosure !tne29,20\7 Certificate: CUSIP Number: NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Certificate. [The Issuer has notified the Dissernination Agent that it anticipates that the Annual Report will be filed by I Dated: [Dissemination Agent] E-8 EXHIBIT B EVENT NOTICE COVER SHEET This cover sheet and accompanying "event notice" will be sent to the MSRB, pursuant to Securities and Exchange Commission Rule 15c2-12@)(5xi)(C) and (D). Issuer's and/or Other Obligated Person's Name: Issuer's Six-Digit CUSIP Number: or Nine-Digit CUSP Number(s) of the Series 2017 Bonds to which this event notice relates: Number of pages attached: _ _ Description of Notice Events (Check One): 1._"Principal and interest payment delinquencies;" 2._"Non-Payment related defaults, iI material;" 3. "Unscheduled draws on debt service reserves reflecting financial difficulties;" 4. "Unscheduled draws on credit enhancements reflecting financial difficulties;" 5.-"Substitution of credit or liquidity providers, or their failure to perform;" 6.-" Adverse tax opinions, IRS notices or events affecting the tax status of the security;" 7._"Modifications to rights of securities holders, if material;" 8._"Bond calls, if material;" 9._"Defeasances;" 10.-"Release, substitutiorL or sale of property securing repayment of the securities, if material;" 11._"Rating changes;" 72._"Bankruptcy, insolvenry, receivership or similar event of the obligated person;" l3.-"Merger, consolidation, or acquisition of the obligated persorL if material;" and 1,4._" Appointment of a successor or additional trustee, or the change of name of a trustee, if material." _ Failure to provide annual financial information as required. I hereby represent that I am authorized by the Issuer or its agent to distribute this information pubLicly: Signature: Name: Date: Title: E-9 ITI{IS PAGE INTENTIoNALLY LEFT BLANK] ITHIS PAGE INTENTIoNALLY LEtrt BLANK] [TTilS PAGE INTENTIONALLY LEFI BLANK] Mixed Sources M'atud'Edl!6ffired Printed b!,: lmageMaster, LLC wlDg.cld.m