highlands county · pdf filehighlands county government ... clerk of circuit court, property...

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Highlands County

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HIGHLANDS COUNTY GOVERNMENT FY2014-2015 RECOMMENDED BUDGET

Highlands County Commission

Jim Brooks District 1 Don Elwell District 2 Ron Handley District 3 Jack Richie District 4 Greg Harris District 5

June Fisher County Administrator

Randal Vosburg Assistant County Administrator

Support Personnel

Timothy R. Mechling, OMB Senior Manager David M. Nitz, Budget Manager

Angela M. Bollinger, Budget Analyst, II Kimberly A. Middleton, Office Manager

Highlands County


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The vision of the Highlands County Board of County Commissioners is to preserve and enhance the outstanding quality of life which has made our community a desirable place to live, work and raise our children. Through the provisions of cost effective superior services, County Government will insure the promotion of orderly growth for the economic health and safety of its citizens.

District 1 – James L. (Jim) Brooks District 2 – Don Elwell

District 3 – Ron Handley District 4 – Jack Richie District 5 – R. Greg Harris

Highlands County


HIGHLANDS COUNTY

BOARD OF COUNTY COMMISSIONERS OFFICE OF THE COUNTY ADMINISTRATOR

P. O. Box 1926 Sebring, Florida 33871-1926

Phone (863) 402-6500 Fax (863) 402-6835

July 1, 2014 To the Honorable Chair and the Members of the Board of County Commissioners:

I appreciate your guidance and support as we develop the budget in this period of continued fiscal stress. The last several years have been very hard, and the County continues to face serious challenges. Public revenue streams remain weak as the costs of maintaining the capacity to deliver basic services and maintain public infrastructure continue to rise. The Recommended Budget represents a transitional document as we continue our work to fully implement a program budget. This budget document presents the FY14-15 Recommended Budget and offers the Board options regarding balancing strategies that will be used in determining the FY14-15 tentative countywide maximum millage rate and budget to be presented at the September public budget hearings.

This budget year will be no different than those in recent history; the County will collect less in property tax revenue and the cost to maintain existing services will increase. We are faced again with the challenge of providing quality service the citizens expect with declining resources. We reacted early and have maintained the course, keeping our eye on the fiscal health of the organization and making tough decisions when needed. While Florida and the nation begin to recover from one of the worst recessions in history, we continue to see a slight improvement in our unemployment rates, consumer spending, and building activity. However, the values of property did have a slight increase but the reduction to tangible personal property and little new construction has created another decrease in overall property values.

To compensate for this loss of resources, the Board has made significant budget reductions and utilized reserves to fund the operating budget over the past fiscal years. During this time, the Board has been extremely disciplined regarding the budget and has added few new discretionary operating expenses. Also during this period of property value decline, the Board reduced property taxes and held the millage rate flat; thereby, allowing property value reductions to result in corresponding tax savings to property owners in the amount of nearly $18 million dollars over the past 8 years.

As you review the FY14-15 Recommended Budget you will see there are significant programmatic reductions for the functions of the Board of County Commissioners. While we have been able to absorb the reductions of the last six years, our capacity has been significantly reduced.

FY2014-2015 RECOMMENDED BUDGET

GENERAL INFORMATION The Office of Management and Budget (OMB) begins to collect data for the development of the budget and adoption process in mid-January. Through various meetings and interaction with Administration, funding priorities are reviewed and financial policies are discussed and adjusted if deemed necessary. The OMB office develops the budget calendar for the approaching budget cycle. The funding priorities and financial policies of the BCC are translated into the budget instructions provided to the departments and constitutional officers. The County budget process is based on an evaluation of the cost of providing selected services. Each department and agency develops detailed information for each cost center used. Management determines whether funds are used efficiently and effectively to accomplish the goals and objectives of a department. Revenues are broken into details based on any restrictions that apply to their use. Expenditures are divided based on any funding restrictions and based on how different types of expenditures must be reported to the State of Florida.

OVERVIEW The County's total Recommended FY2014-2015 Budget is $122,720,903. County staff as directed by the County Administrator formulated the Recommended FY2014-2015 Budget. This budget will be presented to the Board of County Commissioners on July 15, 2014. The Recommended FY2014-2015 Budget for Highlands County is prepared in accordance with Chapter 129 of the Florida Statutes and TRUTH IN MILLAGE (TRIM) requirements as promulgated by the Department of Revenue. Specific requirements are detailed in the budget process calendar. The FY2014-2015 Budget is prepared on a basis consistent with Generally Accepted Accounting Principles (GAAP). Governmental Funds are accounted for on the modified accrual basis of accounting. The Board of County Commissioners, Sheriff, Clerk of Circuit Court, Property Appraiser, Tax Collector, and the Supervisor of Elections maintain separate accounting systems and budgets. Expenditures by the Constitutional Officers (Sheriff, Clerk of Circuit Court, Property Appraiser, Tax Collector, and Supervisor of Elections) are controlled by appropriations in accordance with budget requirements set forth in the Florida Statutes. The expenditure summary for the Recommended Budget is included beginning on page 31 of this summary.

1

The Reco$ 122,720

Note : Perc

B

ommended F0,903. The ex

entages display

PTGPHCEOCR

To

BUDGETB

FY2014-2015 xpenditures g

yed in the char

Public SafetyTransportatioGeneral GovPhysical EnviHuman ServicCulture/ RecEconomic EnOther FinancCourt RelateReservesotal

T EXPENDBY FUNC

Budget, inclgrouped by f

rt may not total

yionvernmentironmentcescreationnvironmentcing Usesed

Budget Ex

DITURESCTIONAL

luding both cfunctional ar

l 100 percent du

( 35.53% )( 25.76% )( 12.32% )( 12.33% )( 4.92% )( 2.72% )( 2.05% )( 0.95% )( 1.88% )( 1.54% )( 100.00% )

xpenditure

S HIGHLIL AREA

capital and orea are as foll

ue to rounding

) 43$ ) 31$ ) 15$ ) 15$ ) 6$ ) 3$ ) 2$ ) 1$ ) 2$ ) 1$ ) 122$

es (all)

IGHTS

operating exlows:

g issues.

3,605,5481,614,6195,119,0695,133,8456,037,5733,341,0952,515,5611,160,8882,301,3501,891,3552,720,903

xpenditures, totals

2

Public Safety: Services in this functional area are provided by Highlands County Board of County Commissioners and the Sheriff for the security of county residents and their properties. The major areas included are the Sheriff's Department, EMS, Emergency Management, and Fire Services.

Transportation: Services in this functional area are provided by Highlands County to offer safe

and adequate flow of vehicles, travelers, and pedestrians. The major areas include the County Engineer, the Road and Bridge Department, and the road improvement districts.

General Government: Services in this functional area are provided by the Legislative and

Administrative branches of Highlands County Government for the benefit of the public and the County Government as a whole. The major areas include Board of County Commissioners, Tax Collector, Property Appraiser, Clerk of Courts, County Administrator, Office of Management and Budget, General Services, Human Resources, and Development Department.

Physical Environment: Services in this functional area are provided by Highlands County for the

primary purpose of achieving a satisfactory living environment by controlling and utilizing elements of the environment. Solid waste operations comprise the majority of these services.

Human Services: This functional area provides health and human services. The major areas

include the Highlands County Public Health Unit and Community Program Services Department.

Culture/Recreation: This functional area offers the provision and maintenance of cultural and

recreational facilities and activities for the benefit of citizens and visitors of Highlands County. The major areas include Parks and Recreation Department and the Countywide Library System.

Economic Environment: This functional area provides services that develop and improve the

economic condition of the community. The major areas include Industrial Development Authority, State Housing Initiatives Partnership and Veterans Services.

Court Related: This functional area provides services for court administration, criminal court, civil

court, juvenile court, traffic court, court reporting, courthouse security, and maintenance of court related facilities. This function is intended to quantify expenditures by the counties in the State of Florida in support of the state court system created by Article V of the state constitution Adopted in 1972.

Reserves: This functional area provides reserves for contingencies for unanticipated events and

associated expenditures (i.e. natural disasters). Interfund Transfers: Includes transfers of moneys between funds, which are not classified as

expenditures.

3

The Counmajor revTaxes, Indirectly uuses a vaof monthmajor revmanagem

Property in Highlproperty trends ofback milHighlandProperty constructto the hoconstructthe ad vamillion frthe 97% property FY1990-9budgeted Half-Cengovernmthe procesales tax

nty's FY2014venue sourcenfrastructure used for the ariety of inforhly collectionvenue sourc

ment review.

Taxes: For ands Count value as a w

f the State of llage rate fods County in Taxes for tion is 2.65%ousing marktion, which ialorem taxes rom FY2013-minimum a

taxes. The c91 to presentd to comply w

nt Sales Taxments based o

eeds based o on boats an

BUDG

4-2015 Recomes are: Prope Surtax, and operation armation and n data has beces. The co

the FY2014-2ty has continwhole, espec Florida and or FY2014-2

ncludes a miFY2014-2015. The combi

ket, the ad vis not part of collected. T-2014. The aanticipated rchart on paget. A minimuwith Truth In

x: The half-on taxable san a populati

nd expanded

GET REVE

mmended Buerty Tax, Had Solid Wastand services statistical meen develop

ollections are

2015 Recommnued to deccially along t the coastal a2015 of 7.13llage rate of 5 decreasedined decrease

valorem taxef the roll bacThe combineadopted millrevenue. The 26 provideum of 95% on Millage (TR

-cent sales taales within thion formula. d the sales ta

ENUE HI

udget is fundalf Cent Saleste Assessmenof the Coun

methods to esped that conte monitored,

mended Budcrease. Thethe coastal aareas in rega314. The F 7.10 mils. T 0.45% ovee in propertys decreased

ck millage raed effect on aage rate willhis is an incs a look at thof the anticiRIM) require

ax is collecthe County. Chapter 92-ax base by in

IGHLIGH

ded by a vars Tax, State Rnt. The larg

nty is the Prtimate thesetains ten (10, and month

dget, the ovee State of Fareas. Highlards to propeFY2014-2015 The taxable ver last year y tax value fo $0.0961 mil

ate calculatioad valorem tl generate $3crease of 0.0he growth of ipated revenements.

ted by the SThe cities an-319 of the 1ncluding the

HTS

riety of revenRevenue Shagest single sroperty Tax. e revenue sou) years of inhly reports

erall taxable vFlorida has slands Countyerty value. T Recommenvalue amounand the gr

or FY2014-20llion. The g

on, will add $taxes is an in30,512,061 in 0075% from f the ad valornue from thi

State and disnd county go1992 Amendme sale of rare

nue sources.aring, Motorsource of rev The OMB urces. A datanformation o

are prepare

value of proseen increasy lags behinThe result is nded Budgent of Ad Valrowth from 015 is 0.44%.growth from$0.0984 millincrease of $0 property tax the FY2013rem tax base is source mu

stributed to overnments ments revisee coins, dete

. The r Fuel venue office abase

on the ed for

operty ses in nd the a roll et for lorem new Due

m new ion to 0.0023 xes at

3-2014 from

ust be

local share

ed the ective,

4

burglar expandedthe state.Local Gofurther dThe addifund for provide $

State RevState levdistributireplaced the loss o2001 andpercentag$2,001,27

protection, d sales tax b. However,

overnment Hecreased theitional reduc distribution$4,460,850 w

venue Sharivied tax moion is based the intangibof income. Td subsequenge to 2.044%

75 in FY2014-

nonresidentase will resu this chapter

Half-Cent Sale percentage ction represen to the couhich is a 3.50

ng: The Statoneys to be upon popu

bles tax with This still resnt years. In, which repr

-2015, which

tial cleaningult in an incrr reduced thes Tax Trust to 8.814% asented an 8.6unties. In F0% increase o

te Revenue Se shared wiulation and sa share of thulted in a mn addition, resents a red is a 2.78% in

g, and nonrrease in the ahe proportiot Fund to 9.6s part of the f9% reductioY2014-2015, of the FY2013

Sharing Act ith counties sales tax col

he state sales major reducti

Chapter 20duction of 9.1ncrease of the

residential pamount of saon of sales ta653%. Chapfunding refo

on in the am the half-cen3-2014 estim

of 1972 estab and municllections. Th tax of 2.25 pion in this so003-402, Law16%. The Coe FY2013-201

pest controlales tax reveax revenues

pter 2003-402orms of the st

mount transfent sales tax

mate.

blished trustcipalities. he legislativpercent, to asource of rev

ws of Floridounty anticip14 estimate.

l services. enues collecte deposited i

2, Laws of Fltate court syerred to the is anticipat

t funds for ceThe formule session of ssist in recovvenue for FYda decreasedpates revenu

The ed by in the lorida

ystem. trust ed to

ertain la for f 2000 vering Y2000-d the ues of

5

Motor Fu The Congovernmroad conbridge reincludes the Counretiremendoes not$1,673,00

The Coufor fundmaintenarevenues.

uel Taxes: Fi

nstitutional ments effectivnstruction, replacements about 206 m

nty as they nt of Road Rt have any

00 in FY2014-

unty Gas Taxding the acance and reps of $730,000

ive (5) types

Gas Tax is ve July 1, 197resurfacing, and traffic

miles of unpaare collected

Revenue BonRoad Reven

-2015, which

x is a 1-cent cquisition opairs of tranin FY2014-20

of motor fue

a 2-cent ta78. The Cousafety proje signals on aved roads. d. The rem

nds and any nue Bonds is a decrease

tax imposedof rights-of-nsportation fa015, which is

el taxes comp

ax imposed unty may usects and imthe 1,183 m Twenty per

maining eightexcess is remoutstanding

e of 0.47% of

d by the State-way, the cacilities, roas a 0.69% incr

prise this sou

by the Statse this excis

mprovements,miles of the rcent (20%) oty percent (mitted to theg. The Couf the FY 2013

e and distribconstructionds and bridrease of the F

urce of reven

te and distrie tax for the, purchases County roaof these fun(80%) is firste County. Hunty anticip3-2014 estima

buted to coun, reconstrudges. The CFY2013-2014

nue:

ibuted to coe funding of of right-of-

ad system, wds are payabt applied to

Highlands Copates revenuate.

unty governmuction, opera

ounty antici4 estimate.

ounty f new -way,

which ble to

oward ounty

ues of

ments ation, ipates

6

The LocaCounty othe cities expire ontax was imat a rate 2004 andenacted fanticipatecent gas t$1,550,00

al Option Gaordinance on and County

n August 1, 2mposed by eof 3-cents ef

d will remainfor the fifth ed is shown tax in FY201

00 for the 5-ce

as Taxes aren all motor fuy based on a2016. The seextraordinarffective on Ja

n in effect un five-year pe in the graph

14-2015, whicent gas tax w

e two separatuel and specan inter-localecond tax is ay vote of theanuary 1 of ntil midnighteriod when h below. Thch is a 0.83%

which is a 3.33

te levies. Thcial fuel, collel agreement. a 0 to 5-cent e Board of Co1993. The rt on Decembit was exten

he County an% increase of

3% increase

he first is a 0ected by the The first 6- levy on moounty Commrate increaseber 31st of 20nded througnticipates rev the FY2013- of the FY201

0 to 6-cent ga State and di-cent local optor fuel only

missioners (med to 5-cents 014. This adgh 2019. Thvenue of $2,-2014 estimat13-2014 estim

as tax imposeistributed baption gas tax

y. This additmajority plus on January

dditional levyhe revenue th,420,000 for tte and reven

mate.

ed by ack to x will tional s one) 1st of y was hat is the 6-

nue of

7

The Nintdiesel fueelected toDecembeThe CounFY2013-2

These fivcurrent fapproximresurfacin Infrastrubased onpublic faanticipateestimated

th Cent Gas el effective Jo impose thiser 31, 2014 bunty anticipa

2014 estimate

ve gas taxes afiscal year e

mately threeng approxim

ucture Surtaxn a referenduacilities pursed to generad collections.

Tax is a 1-ceJanuary 1, 1s tax on motout the Boardtes revenue

e.

are expectedestimates.

e (3) miles mately thirty

x: The infrasum vote for suant to Chate $8,158,19.

ent gas tax on1994 (F.S. 336or fuel also b

d elected to e of $518,654

d to yield $6,8County roaof county r(30) miles of

structure sur the purposehapter 212.093 in FY2014

n motor fuel 6.021(6)). Tby extraordinextend the O in FY2014-2

891,654 in FY

ad projects roads classiff county pave

rtax is a 1-cee of construc055 Florida 4-2015 whic

and diesel fThe Board ofnary vote an

Ordinance fo2015, which

Y2014-2015 wfor FY2014-fied as beloed roads as w

ent sales tax ction, reconsStatutes.

ch is a 5.58%

fuel. This taxf County Co

nd was schedor an additio is a 2.20% i

which is 1.15-2015 includow standardwell as routin

levied by Hstruction, orThe infrastr

% increase fr

x is mandatoommissionerduled to sunsnal five (5) yincrease from

5% more thade reconstrud condition,ne maintena

Highlands Cor improvemeructure surtrom FY2013

ory on rs has set on years. m the

an the ucting , and

ance.

ounty ent of tax is 3-2014

8

Solid WaordinancThe solidand recycis expectFY2014-2result beiand an inthe previa single h2011 with

These revoperation

aste Assessme against eac

d waste assescling programted to come 2015. Duringing to retain ncrease of seious once a mhauler for thh no increase

venues mentns on an ann

ment The sch residentiassment fundms. For the in at the org Fiscal Yea the haulers ervice was omonth schedhe same servie in the asses

tioned aboveual basis.

solid waste aal dwelling uds mandatory

current 2013riginal estim

ar 1999-2000 in both distrbtained, namule. In Fiscaices and asse

ssment.

e represent so

assessment iunit in the uny garbage co3-2014 Fiscal

mates and is the contractricts. Howevmely to remoal Year 2005-essment amo

ome of the m

is a $130.00 anincorporate

ollection and Year, the so anticipatedts were re-bver, there waove yard wa-2006, the conount. The co

major funding

assessment led area of H

d disposal, laolid waste assd to remain bid to waste as no increasaste twice a ntract was amontract was

g sources for

levied by CoHighlands Coandfill operasessment revrelatively fla haulers witse of fees reqmonth instemended to ure-bid in FY

r county

ounty ounty. ations, venue at for th the quired ead of utilize Y2010-

9

The comp

Note : Perc

parison of al

centages displa

TaxeLicenInterCharFinesMisceOtheInterFundTota

ll revenue so

ayed in the char

esnses & Permrgovtrges for Sersellaneouser Sourcesrfund Transd Balanceal

ources by ca

rt may not tota

(mits (

(rvices (

(((

fers (((

Revenu

ategory revea

l 100 percent du

( 41.63% )( 0.41% )( 15.33% )( 8.47% )( 0.08% )( 7.51% )( 0.00% )( 1.04% )( 25.54% )( 100.00% )

ue Sources

als the comp

ue to rounding

$ $ $ $ $ $ $ $ $

1$

(all)

position of th

g issues.

51,084,122 502,800

18,812,520 10,400,206

99,500 9,213,265

- 1,271,238

31,337,252 122,720,903

hose sources

200605

823

s.

10

Taxes: The largest source of revenue is from taxes. This category includes ad valorem taxes, sales and uses taxes, and franchise fees. Intergovernmental Revenues: These are comprised of state and federal grants, as well as state shared revenues such as the half-cent sales tax, motor fuel tax, and the cigarette tax. Miscellaneous: Revenues considered in the miscellaneous category are interest earnings, rents and royalties, special assessments, disposition of fixed assets, sales of surplus material, and contributions from private organizations. Charges for services: This category encompasses ambulance fees, clerk of court fees, public safety inspection fees, and other fees that are charged by various departments for operating services rendered. Licenses and Permits: Revenues from licenses and permits include professional/occupational licenses, building permits, and other licenses and permits. Fines and forfeitures: Library fines, violations of local ordinances, and other fines and forfeitures are included in this designation.

BUDGETARY FUNDS In order to budget and account for governmental receipts and expenditures, the Board of County Commissioners has created various "funds" within the budget. Fund accounting is required by State and Federal regulations as well as by generally accepted accounting principles. This budget uses the following types of funds to account for revenues and expenditures:

General Fund: This fund accounts for 49.48% of the Recommended FY2014-2015 budget and supports the vast majority of County government services as well as the budgets of the Elected Officials.

Special Revenue Funds: These funds are used to account for revenues that are restricted

in their use by the State or Board of County Commissioners and must be kept separate from other County revenues. These funds include Transportation Trust Fund, Public Improvement Districts, E-911 Operations, Infrastructure Surtax and Impact Fee Funds.

Debt Service Funds: These funds are used to separately account for the principal and

interest payments on 2010 Revenue Note and the 2005 Revenue Note. The Board of County Commissioners utilizes the distributions from the Infrastructure Sales Surtax to retire the bonds.

Capital Project Funds: These funds record expenditures for capital projects. During

FY2014-2015 there will be some capital projects under construction.

11

Enterprise Funds: These funds are used to account for certain self-supporting public services provided by County Government - services that generate their own revenues from fees, charges, and other receipts. The Solid Waste Enterprise Fund was implemented in FY94-95. The Asphalt Plant was constructed and operating in FY07-08 at the landfill site. The Water and Sewer Utilities ownership and operations were transferred to the Town of Lake Placid on June 1, 2012. Currently, the County does not have any responsibility or interest in any utility systems.

A more detailed explanation of the revenues, expenditures, and services provided through each fund is contained in the following pages. In addition to the budgetary funds, the BCC maintains two Internal Service Funds for the financing of goods or services provided by one department or agency to other departments or agencies of the BCC and to other governmental units, on a cost reimbursement basis. Those funds are:

Risk Retention - to account for the fiscal activity related to an insurance trust program for general liability, property and workers’ compensation needs of the County departments and elected officials through Preferred Governmental Insurance Trust (PGIT). Claims for this insurance coverage are administered by PGIT.

Employee Benefit - to account for employer and employee contributions to the County’s

medical insurance plan and the payment of insurance premiums. Health benefits are provided by the County through Blue Cross Blue Shield of Florida network and Blue Cross Blue Shield is our plan administrator. This is the eleventh year the County has used Blue Cross Blue Shield for medical insurance coverage.

12

The Geneas well aGeneral F Property the CounState of FOther taxfund tranaccounts.investmecontracto

eral Fund cos, the budgeFund are as f

Taxes are mnty. IntergoFlorida. Chaxes are the frnsfers, admi. Fines and

ents, contracor’s licenses.

ProperLicensIntergoChargeFines &CommFund BInterfuMiscellTotal

ontains the oets of the Cofollows:

moneys colleovernmentalarges for servranchise feesinistrative fe

d forfeitures ts, and note Fund Balan

rty Taxeses & Permi

overnmentes for Serv& Forfeitur

municationsBalanceund Transfelaneous

GE

perating exponstitutional

ected througl revenues invices are pris received byees for spec include all es. License

nce is the fun

(its (al (

vices (res ( Services (

(ers (

((

REVEN

ENERAL F

penditures foOfficers. Th

gh an ad valonclude sales imarily fees cy the Countycial tax distrcourt fines. s and perm

nd balance br

( 50.66% )( 0.03% )( 19.06% )( 8.84% )( 0.16% )( 0.97% )( 17.89% )( 0.07% )( 2.30% )( 100.00% )

NUE SOURC

FUND

or services thhe projected

orem levy on tax and Stacharged for y. Miscellanricts and re Interest inc

mits include rought forwa

) $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ ) $ ) $

CES

hat are coun revenues by

n all non-exate revenue Emergency neous revenucovery of ucludes all m animal conard for budg

30,764,6 18,0

11,574,2 5,369,6

99,5 590,1

10,863,5 45,3

1,398,7 60,723,8

ntywide in nay category fo

empt propersharing fromMedical Servues include

uncollectible moneys earnentrol licensesgetary purpos

09009683001714506029

ature, or the

rty in m the vices. inter- EMS ed on s and ses.

13

The Reco

Services band RecrAdministOfficers: Collectorof County

ommended G

budgeted inreation, Plantration. Addthe Sheriff,

r. The operay Commissio

PerOpeOpeTot

General Fun

n the Generanning, Zoninditionally, th Clerk of th

ations of thesoners.

sonal Servierating Experating Captal

BUDGE

nd expenditu

l Fund inclung, Human he General Fhe Court, Suse elected off

icesenses

pital

ET EXPEND

ures by majo

ude EmergenResources, O

Fund supporupervisor of ficials are fun

( 58.82% )( 40.59% )( 0.59% )( 100.00% )

DITURES BY

or categories

ncy Medical Office of Mrts the budg Elections, Pnded by, but

) 3$ ) 2$ ) $ ) 6$

Y CATEGOR

are as follow

Services, Firanagement

gets of the fiProperty Apt not control

35,716,99924,646,566

360,264 60,723,829

RY

ws:

re Services, Pand Budget

ive Constitutppraiser, andlled by, the B

Parks t, and tional d Tax Board

14

General various e

Note: TheOperatin

Fund expenelected officia

e Reserves fong Departmen

BOCSheCleProTaxSupTot

nses are distals:

or Contingennt’s cost cent

BUD

CCeriff's Officrk of the Cperty Appr

x Collectorpervisor of tal

tributed as

ncy for the vters.

GET BY CON

ceCourtraiser

Elections

follows amo

various Electe

NSTITUTION

( 46.14% )( 40.07% )( 5.57% )( 4.48% )( 2.48% )( 1.25% )( 100.00% )

ong the ope

ed Officials a

NAL OFFICER

) 2$ ) 2$ ) $ ) $ ) $ ) $ ) 6$

erating depa

are containe

R

28,019,85124,330,934

3,383,926 2,723,310 1,505,430

760,378 60,723,829

artments and

d within the

d the

e BCC

15

The Tranconstructthe Trans

nsportation tion and maisportation Tr

InterOtheFundMiscCharLicenInterInterTota

TRAN

Trust Fundintenance of rust Fund are

rgovter Taxesd Balanceellaneousrges for Sernses & Permrestrfund Transal

NSPORTA

d contains t the County e as follows:

((((

rvices (mits (

(fer (

(

Reven

ATION TR

the operatin road system

( 24.88% )( 43.31% )( 16.67% )( 14.31% )( 0.47% )( 0.16% )( 0.19% )( 0.00% )( 100.00% )

nue Source

RUST FUN

ng expenditum. The projec

$ $ $ $ $ $ $ $ $

es

ND

ures for sercted revenue

2,629,250 4,576,832 1,761,911 1,511,654

50,000 17,000 20,000

- 10,566,647

rvices relatees by categor

0214000

7

ed to ry for

16

IntergoveCounty GInternal reimbursinspectioand Permfunds on The Tran

Note : Perc The depaEngineerdrainage maintena Projects nthirty (30roads claportion oof county

ernmental rGas Tax distServices are

sements fromn fees. Inter

mits are driv deposit.

nsportation T

entages display

artments funr. Services pr projects, f

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DITURES BY

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5,981,64 4,490,47

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17

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18

Detailed descriptions of the individual projects are contained in the CFS Plan. Copies of the plan are available for review or purchase from the Office of Management and Budget (OMB). As previously mentioned, road resurfacing, road construction and reconstruction are funded through the infrastructure surtax fund. Some projects in the budget are: construction of Sebring Phase III & IV, Public Radio System, EMS Buildings and the Law Enforcement Building. Enterprise Funds: There are two enterprise funds contained in the budget. These funds are used to account for certain self-supporting public services provided by County Government - services that generate their own revenues from fees, charges, and other receipts. The Solid Waste Enterprise Fund was implemented in FY 94-95. The Energy Recovery Fund was created in FY 07-08. The Water and Sewer Utilities ownership and operations were transferred to the Town of Lake Placid on June 1, 2012. Currently, the County does not have any responsibility or interest in any utility systems. The Solid Waste Enterprise Fund This fund includes projects for the operation of the Arbuckle Landfill site, recycling operations at the Desoto City site, and maintenance of a wetlands mitigation area at the Arbuckle site. The mandatory garbage collection program is also operated from this fund. One private company has an exclusive franchise for residential garbage collection service. A non-ad valorem assessment of $130.00 is levied for each residential unit annually. This assessment covers the cost of curbside pick up, disposal of the garbage in the landfill, removal of yard waste, and processing of recyclable materials for resale by Highlands County. This will provide additional funds for future expansion at the landfill. Construction of Cell 3 at the Arbuckle Creek Road facility was completed during FY2002-03. This cell is twice as large as the two previous cells that were constructed and completes the base of the first pyramid for the above ground landfill. The projection for the capacity of the combined cells is approximately 20 years. Landfill Closure And Post Closure Care Cost Highlands County has three landfill sites that are comprised of a total of 14 cells, one of which is currently in operation. State and Federal laws and regulations require the County to place a final cover on the one cell currently in use when it closed, and to perform maintenance and monitoring functions for all landfill sites for thirty years after closure. Landfill operations and landfill closure and post closure care costs are accounted for in the Solid Waste Enterprise Fund. Although closure and post closure care costs will be paid only near or after the date the landfill stops accepting waste, the County reports as a liability a portion of closure and post closure care costs based on landfill capacity used as of the balance sheet date. The landfill closure and post closure care liability of $6,947,853 at September 30, 2013 represents the cumulative amount reported to date based on an average use of 45% of the total estimated capacity. The portion of the liability related to 2013 usage is an increase of $316,537. It is estimated that an additional liability totaling $8,615,692, for Arbuckle Creek Cell lA, lB, Cell 3, Arbuckle Creek Cell C&D, and Arbuckle Creek Cell AG will be recognized between the balance sheet date and the dates these cells will be filled to

19

capacity in the years 2024, 2024, 2024, 2015 and 2099, respectively. Actual costs may differ due to inflation, changes in technology, or changes in landfill laws and regulations. The County is required by State and Federal laws and regulations to make annual contributions to a landfill management escrow account to finance closure and post closure care financial assurance requirements. The County is in compliance with these requirements at September 30, 2013, with cash and investments of $6,697,990 held for these purposes. The County expects that future inflation costs will be paid from future contributions and interest earnings on these contributions. In the event closure escrows and interest earnings prove inadequate due to higher than expected inflation, changes in technology or changes in laws or regulations, these costs may need to be financed by future landfill users or future tax revenue.

Energy Recovery Fund

This fund accounts for the operation of the Asphalt Plant that was approved and constructed in FY 2007-2008. The Asphalt Plant was constructed at the landfill site in order to use methane gas produced by the landfill as an energy source for powering the plant. The amount of materials that can be recycled from the landfill to use in the making of asphalt will greatly reduce the price of the asphalt. This will allow the County to pave additional roads and better maintain the road system due to the savings in producing our own asphalt. Impact Fee Funds

Highlands County adopted impact fees on September 5, 2006. Tindale-Oliver & Associates, Inc. provided an impact fees study with the estimated cost for eight different impact fees. Transportation, Park & Recreation, Correctional Facilities, Fire, Libraries, Law Enforcement, EMS, and Public Schools were all adopted impact fees by the Board of County Commissioners. All impact fees except for the Public Schools are at 30% of Tindale-Oliver & Associates, Inc. estimated impact fees. The Public Schools impact fees were implemented at 50% of Tindale-Oliver & Associates, Inc. estimated impact fees. The Board of County Commissioners voted unanimously to approve the impact fees with indexing of the fees being evaluated each year. The Board of County Commissioners agreed to revisit the impact fees annually and make any adjustments to the implementation percentage or indexing for inflation. In June of 2010 the Board of County Commissioners adopted the methodology of Duncan and Duncan to replace and update the original Tindale-Oliver & Associates, Inc. study. In June of 2009 the Board of County Commissioners suspended impact fees for one year effective July 1, 2009. In June of 2010, 2011, 2012 and in 2013, the Board of County Commissioners agreed to suspend impact fees for an additional year. The impact fees were suspended until June 30, 2014 and in June 2014, the Board of County Commissioners again agreed to suspend fees for an additional year until July 1, 2015. For the Fiscal Year 2014-2015 Recommended Budget, there is no revenue budgeted for impact fees. The fund balance is budgeted in FY 2014-2015 for impact fees.

20

DEBT SERVICE Debt service is comprised of notes payable, revenue certificates, and certificates of indebtedness. The debt service information is contained in Section I.

CASH MANAGEMENT The Accounting and Finance Division under the Clerk of Courts invests cash that is temporarily idle during the year. The funds are invested in the Local Government Surplus Funds Trust Fund, Certificates of Deposit and with TD Bank. The Local Government Surplus Funds Trust Fund was established to assist units of local government in maximizing net earnings on invested surplus funds, reducing the need for the imposition of additional taxes on county taxpayers. The portfolio objective is to provide a short-term, very liquid high quality investment vehicle to participating local governments. The pooled account emphasizes liquidity, and participants’ funds are made available on a daily basis period. Investments consist of U.S. Government and agency repurchase agreements and certain corporate short-term obligations. The pooled fund minimizes interest rate risk by keeping average maturities short. Due to management issues in the past associated with the pools investments in sub prime mortgages, the fund has under gone management and policy changes. During this time of change the County did not invest funds in the pool. However, due to the changes in management and policy, idle funds are once again being invested in the pool. The TD Bank was established as the primary bank in July 2011 replacing Bank of America. The funds are on a Public Funds Interest on Checking Account (collateralized per Florida Statutes Chapter 280), and it earns interest of 0.3 bases points on the standard checking account. Interest earned on pooled investments is allocated to the participating funds based on their average monthly balance held in cash and investments.

21

RISK MANAGEMENT Risk Retention Fund: The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disaster. Effective April 1, 2009, the County became a member of Preferred Governmental Insurance Trust (PGIT), a local government liability risk trust. PGIT administers insurance activities relating to property, general, automobile, and public officials’ liability, workers’ compensation, and auto physical damage. PGIT provides insurance coverage directly with insurance providers for insurance cover of the County. Employee Benefit Fund: On October 1, 1977, the County established the Employee Benefit Fund to self insure County employees and their dependents for group medical costs. In 1989, the County transferred its assets, liabilities and fund equity to an internal service fund. Medical claims are paid for by the premiums generated by employee contributions for dependents and contributions by the County for employees. This Fund was reestablished during FY2012-2013. The County has approved medical insurance coverage through Blue Cross and Blue Shield of Florida for employees and optional coverage for spouse and dependents for FY2014-2015. This is an insured plan that also includes optional dental coverage; $15,000 in life insurance is also provided for each employee and is included in the premium for health coverage.

RETIREMENT PLAN All full time employees of the County are participants in the Florida Retirement System (FRS), a defined benefit, multiple employer cost sharing public retirement system, which is controlled by the State Legislature and administered by the State of Florida, Department of Administration, and Division of Retirement. The FRS plan covers a total of 621,774 active members including 514,436 Pension Plan members and 107,338 Investment Plan members of various governmental units within the State of Florida. Since in FY2002-2003, employees have had the option to convert to an alternative plan referred to as the Public Employees Optional Retirement Plan (PEORP) or FRS Investment Plan. This plan provides for vesting after one (1) year of employment and provides portability if the employee leaves employment within the FRS system. The PEORP provides the employee with various investment options at the discretion of the employee. Such control of the investment of retirement benefits is not permitted under the FRS Pension Plan. Members of the FRS Investment Plan are not eligible for the Deferred Retirement Option Program (DROP). The FRS Pension Plan provides for vesting of benefits after 6 years of creditable service for employees hired prior to July 1, 2011 and vesting of benefits after 8 years for employees hired after July 1, 2011. Effective July 1, 2011, all FRS members must contribute 3% of their salary as retirement contributions, on a pre-tax basis to the retirement plan. For FRS members hired before July 1, 2011, normal retirement benefits are available to employees who retire at or after age 62 with 6 or more years of service. Early retirement is available after 6 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. There is no age restriction or penalty for early retirement after 30 years of service. For FRS members hired after July 1, 2011

22

normal retirement benefits are available to employees who retire at or after age 65 with 8 or more years of services. The average final compensation used in calculating retirement benefits will be the highest 8 fiscal years of salary. Maximum benefits are earned after 33 years of service for Regular class, Senior Management Service Class and Elected Officers’ Class. The DROP program permits employees with 30 or more years of service to process their retirement yet continue to work. The monthly benefits for the participants are placed in an investment account for the period of time the employee participates in DROP. The maximum period that an employee may participate in the DROP program is 5 years. Employees in the DROP program do not contribute 3% of their salary to the FRS retirement system. Participating employer contributions are based upon statewide rates established by the Legislature for FY2014-2015. The current rates applied to employee salaries are as follows:

*DROP denotes Deferred Retirement Option Program & **H.I.S. denotes a health insurance subsidy.

MembershipAdopted

Rate Actuarial HIS PEORPPrior Rate

Proposed Rate Actuarial HIS PEORP

Total Rate

Class 7/1/2013 Liabilities Admin 7/1/2014 7/1/2014 Liabilities Admin 7/1/2014

Regular HA 3.53% 2.19% 1.20% 0.03% 6.95% 3.53% 2.54% 1.26% 0.04% 7.37%

Special Risk HB 11.00% 6.83% 1.20% 0.03% 19.06% 11.01% 7.51% 1.26% 0.04% 19.82%Special Risk HJ 4.17% 30.56% 1.20% 0.03% 35.96% 4.18% 36.59% 1.26% 0.04% 42.07%Administrative

Elected Officials HI 8.44% 23.36% 1.20% 0.03% 33.03% 8.36% 33.58% 1.26% 0.04% 43.24%Senior Mgmt HM 4.81% 12.27% 1.20% 0.03% 18.31% 4.80% 15.04% 1.26% 0.04% 21.14%DROP DP 4.63% 7.01% 1.20% 0.00% 12.84% 4.30% 6.72% 1.26% 0.04% 12.32%

23

Highlands County


24

Please Note: The Sum of ALL pecrents of total may not always be equal to 100.00% due to rounding.

FY 2014/2015 RECOMMENDED BUDGET - $122,720,903

Taxes $51,084,122

41.63%

Licenses & Permits$502,800

0.41%

Intergovt$18,812,520

15.33%Charges For Services$10,400,206

8.47%Fines & Forfeits $99,5000.08%

Misc Revenues $9,213,265

7.51%

Interfund Transfers $1,271,238

1.04%

Fund Balance$31,337,252

25.54%

WHERE THE MONEY COMES FROM

General Government $15,119,069

12.32%

Public Safety $43,605,548

35.53%

Physical Environment $15,133,845

12.33%

Transportation $31,614,619

25.76%

Economic Environment $2,515,561

2.05%

Human Services $6,037,573

4.92%

Culture/ Recreation $3,341,095

2.72%

Reserves$1,891,355

1.54%

Other FinancingUses

$1,160,8880.95%

Court Related $2,301,350

1.88%

WHERE THE MONEY GOES

25

TAXROLL FISCAL ACTUAL JUST TAXABLE RATIO OFYEAR YEAR REVENUE RATE $/MILL VALUE VALUE TAXABLE vs.

ASSESSED1990 90/91 13,902,373 7.9500 1,748,726 2,781,560,373 1,812,174,613 65%1991 91/92 14,838,661 7.9500 1,866,498 2,981,424,850 1,950,159,680 65%1992 92/93 15,260,559 7.9500 1,919,567 3,146,471,610 2,078,389,640 66%1993 93/94 16,899,975 8.5000 1,988,232 3,231,108,200 2,148,265,140 66%1994 94/95 18,180,685 8.5000 2,138,904 3,363,831,600 2,238,543,830 67%1995 95/96 18,954,515 8.5000 2,229,943 3,507,205,040 2,334,971,490 67%1996 96/97 19,348,446 8.5000 2,276,288 3,543,744,977 2,371,710,135 67%1997 97/98 20,468,967 8.5000 2,408,114 3,803,303,511 2,515,370,860 66%1998 98/99 20,609,122 8.5000 2,424,603 3,673,327,614 2,539,698,769 69%1999 99/00 21,778,338 8.5000 2,562,157 4,036,391,045 2,688,132,008 67%2000 00/01 22,905,570 8.5000 2,694,773 4,115,626,246 2,838,025,292 69%2003 03/04 27,562,147 9.0000 3,062,461 4,659,794,289 3,205,620,639 69%2004 04/05 30,208,582 9.0000 3,356,509 5,164,892,765 3,482,922,775 67%2005 05/06 35,749,748 9.0000 3,972,194 6,244,394,728 4,166,834,074 67%2006 06/07 48,301,755 8.5000 5,682,559 8,847,036,549 5,887,483,997 67%2007 07/08 48,909,129 7.3544 6,650,322 10,241,108,372 6,867,770,115 67%2008 08/09 42,105,026 7.1000 5,930,285 9,834,084,705 6,274,707,840 64%2009 09/10 39,077,186 7.1000 5,503,829 8,879,070,978 5,717,032,184 64%2010 10/11 33,603,010 7.1000 4,732,818 7,506,346,367 4,921,416,247 66%2011 11/12 32,121,427 7.1000 4,524,145 7,130,916,862 4,662,113,828 65%2012 12/13 31,164,910 7.1000 4,389,424 6,830,031,493 4,547,821,035 67%

* 2013 13/14 30,509,765 7.1000 4,297,150 6,727,859,938 4,449,817,579 66%** 2014 14/15 30,512,061 7.1000 4,297,473 4,430,384,977 #DIV/0!

** Calculated from the DR420 from the Property Appraiser.

AD VALOREM TAX DATA

* This data is unaudited until revenue collections are complete and Certification of Final Taxable Value from the Department of Revenue is received. Includes reductions from Value Adjustments Board

-

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

AD VALOREM TAX GRAPH

JUST VALUE TAXABLE VALUE

26

Operating Departments *** 26,046,460 42.89% ***Mandatory Components:Law Enforcement - BOCC 1,973,391 3.25% Detention Medical 929,260Sheriff 24,330,934 40.07% State County Assistance 1,300,000Clerk of Courts 3,383,926 5.57% County Jail Building Maint. 763,048Property Appraiser 2,723,310 4.48% CRAs 795,279Tax Collector 1,505,430 2.48% Op. Courthouse Facilities 184,925Supervisor of Elections 760,378 1.25% Mental Health 438,818 Total General Fund 60,723,829 100.00% HCRA 396,368

Board Attorney 374,148Auditors 186,000Division of Forestry 35,935Court Communications 25,816Medical Examiner 327,365Total 5,756,962

Outside Agencies 1,087,736

Board Departments 17,431,073 0.287055

Transfers to Other Funds 1,019,189Reserve for Contingency 751,500

Total Operating Departments 26,046,460Updated 6-24-2014

Recommended Budget FY 14/15

HIGHLANDS COUNTYGENERAL FUND ALLOCATION

27

STAFFING SUMMARY

COST FY11-12 FY12-13 FY13-14 FY14-15 FY14-15 FY14-15CENTER Adopted Adopted Adopted Continue Issues Recomm

BOARD OF COUNTY COMMISSIONERS:Courthouse Facilities 2.00 1.00 0.00 0.00 0.00 0.00Board of Commissioners 5.00 5.00 5.00 5.00 0.00 5.00County Administrator 4.50 4.50 4.50 4.50 0.00 4.50County Attorney 0.00 0.00 2.00 2.00Office of Management & Budget 6.24 5.94 5.60 5.60 0.00 5.60Human Resources 6.33 6.33 5.00 4.00 0.00 4.00Risk Mangement 0.00 1.00 1.00 0.00 1.00Non-ad Valorem Assessments 0.40 0.80 0.80 0.80 0.00 0.80Public Information 0.50 0.50 0.50 0.50 0.00 0.50General Services 4.93 4.33 4.00 4.00 0.00 4.00Facilities Management 22.00 21.50 18.50 18.50 0.00 18.50County Extension 4.00 4.00 4.00 5.00 1.00 6.00Emergency Management 4.00 4.00 4.00 4.00 0.00 4.00E-911 Program (formerly E-911 Dispatch Center) 0.00 0.00 0.00 0.00 0.00 0.00County Fire Coordinator 6.00 6.00 6.00 6.00 0.00 6.00Children's Advocacy Center 2.00 2.00 2.00 2.00 0.00 2.00Emergency Medical Service 59.00 59.00 59.00 59.00 0.00 59.00Animal Control 8.00 8.00 9.00 9.00 0.00 9.00Heartland Library Coop 4.20 3.20 3.20 3.20 0.00 3.20Library-Avon Park 3.00 3.00 3.00 3.00 0.00 3.00Library-Sebring 6.00 6.00 6.00 6.00 0.00 6.00Library-Lake Placid 3.00 3.00 3.00 3.00 0.00 3.00Library-Countywide 2.80 2.80 2.80 2.80 0.00 2.80Parks 11.00 11.00 14.00 14.00 0.00 14.00Parks Administration 2.00 2.00 2.00 2.00 0.00 2.00Sports Complex 2.00 2.00 2.00 2.00 0.00 2.00Veterans Service 3.00 3.00 3.00 3.00 0.00 3.00Healthy Families Highlands 5.00 4.90 8.00 8.00 0.00 8.00Community Program Services 2.00 2.10 2.00 2.00 0.00 2.00Community Program Housing 0.50 0.00 0.00 0.00 0.00 0.00State Housing Initiatives Partnership 0.50 0.00 0.00 0.00 0.00 0.00Home Investment Partnership 0.00 1.00 1.00 1.00 0.00 1.00Hurricane Housing Plan 0.00 0.00 0.00 0.00 0.00 0.00Natural Resources 3.00 3.00 3.00 3.00 0.00 3.00Weed Control 5.00 5.00 5.00 5.00 0.00 5.00County Engineer 18.50 18.45 18.35 17.98 0.00 17.98Road and Bridge 59.50 60.10 61.10 61.00 0.00 61.00Bridge and Concrete 7.00 7.00 7.00 7.00 0.00 7.00Maintenance Shop 11.00 11.00 11.00 11.00 0.00 11.00Traffic Operations 8.00 8.00 8.00 8.00 0.00 8.00Mowing 10.00 10.00 10.00 10.00 0.00 10.00Shell Pit 2.00 2.00 2.00 2.00 0.00 2.00Geographic Information System (new cost ctr for FY14/15) 2.00 0.00 2.00Solid Waste 17.50 17.05 17.15 17.69 0.00 17.69Recycling Operations/Recovery Facility 5.23 1.00 3.00 1.33 0.00 1.33Solid Waste Administration 0.00 0.00 0.00 0.00 0.00 0.00Recycling Grant 0.77 0.00 0.00 0.00 0.00 0.00Refuse Collection Program 0.70 0.60 0.60 0.60 0.00 0.60County Planning/Development 6.50 5.50 5.50 5.50 0.00 5.50Zoning 9.30 9.30 9.30 9.30 0.00 9.30Placid Utilities 2.03 0.00 0.00 0.00 0.00 0.00Sewer 1.31 0.00 0.00 0.00 0.00 0.00Tourist Development 2.00 2.00 2.00 2.00 0.00 2.00Court Facilities 1.00 2.50 2.50 2.50 0.00 2.50E-911 Communications (formerly E-911 Emerg Oper.) 0.00 0.00 0.00 0.00 0.00 0.00Communications Program 0.00 0.00 0.00 0.00 0.00 0.00Geographic Information Sys (switched to 414998 for FY14/15) 0.90 1.90 1.90 0.00 0.00 0.00Building 8.20 8.20 8.20 9.20 0.00 9.20Water (Highway Park) 0.66 0.00 0.00 0.00 0.00 0.00Judicial Technology 2.00 2.00 2.00 2.00 0.00 2.00Law Library 0.00 0.00 0.00 0.00 0.00 0.00BOARD TOTAL 362.00 351.50 356.50 356.00 3.00 359.00

28

STAFFING SUMMARY

COST FY11-12 FY12-13 FY13-14 FY14-15 FY14-15 FY14-15CENTER Adopted Adopted Adopted Continue Issues Recomm

SPECIAL ASSESSMENT DISTRICTS:Desoto City Fire District 2.00 2.00 2.00 2.00 0.00 2.00Highlands Lakes Fire District 2.00 2.00 2.00 2.00 0.00 2.00Lake Placid Spc Ben Dist 2.00 2.00 2.00 2.00 0.00 2.00Placid Lakes Special Benefit District 0.00 0.00 0.00 0.00 0.00 0.00Sun n Lakes Lake Placid VFD 2.00 2.00 2.00 2.00 -2.00 0.00West Sebring Special Benefit Fire District 2.00 2.00 2.00 2.00 0.00 2.00SPECIAL DISTRICTS TOTAL 10.00 10.00 10.00 10.00 -2.00 8.00

ELECTED OFFICIALS:CLERK OF COURTS : Board Funded Positions 40.08 40.18 40.18 40.55 0.00 40.55CLERK OF COURTS : State Funded Positions 37.36 36.48 36.48 33.87 0.00 33.87CLERK OF COURTS : Trust Funded Positions 9.05 0.00 9.05PROPERTY APPRAISER 30.00 29.00 29.00 28.00 0.00 28.00SHERIFF : Board Funded Positions 326.25 323.10 323.10 314.56 0.00 314.56SHERIFF : Grant Funded Positions 20.75 18.90 18.90 37.20 0.00 37.20SUPERVISOR OF ELECTIONS 5.00 5.00 5.00 5.00 0.00 5.00TAX COLLECTOR 33.00 33.00 39.00 39.00 0.00 39.00OFFICIALS TOTAL 492.44 485.66 491.66 507.23 0.00 507.23

STAFFING TOTAL 864.44 847.16 858.16 873.23 1.00 874.23

29

FY10-11 FY11-12 FY12-13 FY13-14 FY14-15

ORGANIZATION ADOPTED ADOPTED ADOPTED ADOPTED RECOMM

RECREATION:

AVON PARK RECREATION (INTERLOCAL) $256,732 $110,000 $110,000 $110,000 $110,000

SEBRING RECREATION (INTERLOCAL) $189,632 $110,000 $110,000 $110,000 $110,000

LAKE PLACID RECREATION (INTERLOCAL) $114,310 $110,000 $110,000 $110,000 $110,000

CFS:

SEBRING AIRPORT (INTERLOCAL) $0 $0 $0 $0 $0

AVON PARK AIRPORT (INTERLOCAL) $0 $0 $0 $0 $0

OTHER AGENCIES:

NU-HOPE $32,500 $29,250 $29,250 $29,250 $35,000

RIDGE AREA ARC $18,000 $16,200 $7,800 $0 $0

IDA-ECONOMIC DEVELOPMENT $266,002 $239,401 $215,461 $0 $240,377

HEALTH UNIT $270,000 $243,000 $243,000 $243,000 $243,000

BOYS & GIRLS CLUB OF HIGHLANDS CO $22,500 $18,000 $0 $0 $0

SAFEHOUSE $27,000 $30,000 $27,000 $30,000 $30,000

LAKE PLACID CHAMBER OF COMMERCE $2,500 $2,000 $250 $0 $0

AVON PARK CHAMBER OF COMMERCE $2,500 $2,000 $250 $0 $0

SEBRING CHAMBER OF COMMERCE $2,500 $2,000 $250 $0 $0

COMMUNITY RE-DEVELOPMENT AGENCY

AVON PARK $94,715 $89,460 $82,153 $79,482 $81,167

AVON PARK SOUTHSIDE $31,401 $25,195 $18,863 $15,753 $12,293

AVON PARK AIRPORT $22,281 $23,735 $23,932 $24,341 $24,921

SEBRING

Sebring Original $239,419 $410,239 $389,471 $286,146 $275,153

Sebring Expanded $45,006 $43,553 $42,066 $42,718 $40,537

Sebring Harder Hall $0 $0 $0 $0 $0

SEBRING AIRPORT $352,882 $355,811 $354,364 $361,208 $361,208

TOTAL $1,989,880 $1,859,844 $1,764,110 $1,441,898 $1,673,656

AGENCY FUNDING

30

BOARD OF COUNTY COMMISSIONERS

TITLE FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 CONT ISSUE FY 2014-15 PERCENT

ADOPTED ADOPTED ADOPTED ADOPTED TOTAL TOTAL RECOMMEND CHANGE

GENERAL ADMINISTRATION

Board of County Commissioners 348,965 342,487 320,971 385,000 423,876 0 423,876 10.10%

County Administrator 481,765 474,982 460,915 455,000 469,247 0 469,247 3.13%

TOTAL 830,730 817,469 781,886 840,000 893,123 0 893,123 6.32%

ADMINISTRATIVE SERVICES

County Attorney 355,499 300,000 300,000 300,000 300,000 74,148 374,148 24.72%

County Audits-CPA 211,690 216,070 180,000 184,000 186,000 0 186,000 1.09%

Office of Management & Budget 406,867 420,460 393,409 362,507 365,896 0 365,896 0.93%

Human Resources 415,844 409,290 379,665 272,392 228,457 0 228,457 -16.13%

Risk Management 0 0 0 71,691 73,241 0 73,241 2.16%Non-Ad Valorem Assessments 103,089 22,754 44,308 47,640 47,319 0 47,319 -0.67%

Public Information 33,726 34,353 34,416 36,000 38,555 0 38,555 7.10%

General Services 452,134 379,131 356,684 240,741 251,347 723 252,070 4.71%

Facilities Management 2,078,394 1,744,233 1,559,508 1,467,022 1,459,223 0 1,459,223 -0.53%

Courthouse Facilities 280,939 259,207 204,801 182,400 184,925 0 184,925 1.38%

Court Facilities 255,631 260,301 209,250 208,343 217,758 34,800 254,088 21.96%

Work Study Program 0 0 0 0 0 0 0 0.00%

Historic Preservation Commission 1,550 1,550 1,550 1,550 1,550 0 1,550 0.00%

Tourist Development - Operations 282,475 90,635 85,655 129,328 140,432 0 142,788 10.41%

Tourist Dev - Promote/Advertise Offseason 0 100,012 94,528 0 0 0 0 0.00%

Tourist Development - Arts & Culture 0 53,131 50,217 31,734 35,465 0 35,465 11.76%

Tourist Development - Local Events 0 37,504 35,447 126,938 141,859 0 141,859 11.75%

Tourist Development - Lakes 0 31,254 49,540 52,000 35,264 0 35,264 -32.18%

Central Services 1,063,003 1,108,749 1,296,819 1,313,902 1,724,523 0 1,724,523 31.25%

Interfund Transfers-005 587,683 895,238 866,492 817,480 1,019,189 0 1,019,189 24.67%

Budgetary Expenditure Accounts 921,500 973,889 751,500 751,500 751,500 0 751,500 0.00%

TOTAL 7,450,024 7,337,761 6,893,789 6,597,168 7,202,503 109,671 7,316,060 10.90%

COMMUNITY SERVICES

COUNTY EXTENSION

County Extension 252,618 209,139 212,319 244,052 232,346 22,257 254,603 4.32%

Subtotal 252,618 209,139 212,319 244,052 232,346 22,257 254,603 4.32%

31




EMERGENCY MANAGEMENT

Local Emergency Management Agency 424,651 577,398 439,747 471,788 460,770 0 460,770 -2.34%

Intergovt Radio Communication 215,911 218,000 242,550 230,000 298,300 0 298,300 29.70%

E911 Program - Landlines 816,455 833,575 897,476 867,310 958,471 0 958,471 10.51%

E911 Dispatch Center 148,296 60,448 60,450 60,450 0 0 0 -100.00%

Communications Program 383,772 472,838 404,762 101,011 119,465 0 119,465 18.27%

Geographic Information System 80,715 65,278 103,709 118,842 119,557 0 119,557 0.60%

Geographic Information System 0 0 0 146,740 12,000 158,740 100.00%

E911 Program - Wireless 0 0 0 0 0 0 0 0.00%

Subtotal 2,069,800 2,227,537 2,148,694 1,849,401 2,103,303 12,000 2,115,303 14.38%

PUBLIC SAFETY

Crime Prevention 30,320 36,000 36,000 36,000 36,000 0 36,000 0.00%

Law Enforcement Education 35,750 78,750 36,500 32,000 32,000 0 32,000 0.00%

Domestic Violence Training 5,972 5,972 5,577 6,975 7,050 0 7,050 1.08%

Community Traffic Safety 0 0 0 0 0 0 0 0.00%

Fire Departments - VFD #1 78,000 78,000 78,000 78,000 78,000 0 78,000 0.00%

County Fire Coordinator 572,105 552,049 538,792 537,310 535,413 0 535,413 -0.35%

Division of Forestry 35,935 35,935 35,935 35,935 35,935 0 35,935 0.00%

Fire Safety Inspections 9,750 9,750 10,750 10,750 10,750 0 10,750 0.00%

County Jail Maintenance 707,446 641,445 702,295 734,248 763,048 0 763,048 3.92%

Detention & Correction-Medical 1,050,000 990,000 953,260 927,760 929,260 0 929,260 0.16%

Law Enforcement Maintenance 115,000 115,000 255,374 260,374 264,307 0 264,307 1.51%

Detention & Correction-Other 79,167 129,167 66,667 66,667 91,667 0 91,667 37.50%

Law Enforcement - Other 484,530 432,391 1,508,127 1,622,379 1,617,417 0 1,617,417 -0.31%

Children's Advocacy Center 149,017 142,792 142,217 142,340 142,264 0 142,264 -0.05%

Emergency Medical Service 5,526,590 4,987,833 5,074,389 5,168,197 5,030,052 0 5,030,052 -2.67%

Animal Control 489,290 483,913 523,012 551,506 576,023 0 576,023 4.45%

Subtotal 9,368,872 8,718,997 9,966,895 10,210,441 10,149,186 0 10,149,186 -0.60%

LIBRARIES

Libraries - Heartland Coop 233,730 225,033 199,912 188,454 177,550 0 180,547 -4.20%

Libraries - Avon Park 185,617 159,081 153,473 156,488 132,396 24,259 156,655 0.11%

Libraries - Sebring 296,049 263,976 264,726 271,137 223,433 48,519 271,952 0.30%

Libraries - Lake Placid 179,745 153,946 152,283 157,206 130,409 24,259 154,668 -1.61%

Libraries - Countywide 274,564 204,697 212,080 216,877 172,789 43,405 216,194 -0.31%

Subtotal 1,169,705 1,006,733 982,474 990,162 836,577 140,442 980,016 -1.02%

32




PARKS AND RECREATION

Recreation Department 560,674 330,000 330,000 330,000 330,000 0 330,000 0.00%

Parks Department 730,700 679,194 672,142 821,308 813,206 0 813,206 -0.99%

Florida Boating Improvement Program 48,000 48,000 48,000 48,000 48,000 0 48,000 0.00%

Parks Administration 157,089 147,929 155,788 160,000 168,091 0 168,091 5.06%

Sports Complex 219,576 198,034 187,312 184,465 175,447 0 175,447 -4.89%

Subtotal 1,716,039 1,403,157 1,393,242 1,543,773 1,534,744 0 1,534,744 -0.58%

HUMAN SERVICES

Hospital District 0 0 0 2,207,768 0 2,207,768 100.00%

Veteran Service Office 165,057 164,420 154,605 171,036 166,481 0 166,481 -2.66%

Mental Health 432,531 436,617 434,252 430,414 438,818 0 438,818 1.95%

Health Care Responsibility Act 398,852 395,144 394,848 395,820 396,368 0 396,368 0.14%

Human Services Administration 0 0 0 0 0 0 0 0.00%

Public Assistance Programs 123,417 125,964 41,540 64,516 75,295 0 75,295 16.71%

State-County Assistance Programs 850,000 850,000 1,451,000 1,300,000 1,300,000 0 1,300,000 0.00%

Nu-Hope 32,500 29,250 29,250 29,250 35,000 0 35,000 19.66%

Children's Services Council 49,750 48,250 27,250 30,250 30,970 0 30,970 2.38%

Transportation for Disadvantaged Program 59,972 70,729 70,725 71,297 192,908 2,931 195,839 174.68%

Drivers Ed Safety 46,000 46,000 37,570 34,500 36,000 0 36,000 4.35%

Healthy Families - Highlands 221,862 205,521 212,784 354,066 364,532 0 364,532 2.96%

Community Program Services 137,114 105,297 93,353 90,129 90,520 0 90,520 0.43%

Community Program Housing 205,555 50,255 898 898 0 0 0 -100.00%

Community Development Block Grant-Housing 688,846 0 0 0 0 0 0 0.00%

State Housing Initiatives Partnership 434,351 642,094 453,741 337,295 120,000 0 120,000 -64.42%

Housing Department 0 0 0 0 0 0 0 0.00%

Home Investment Partnership 576,135 829,415 351,211 145,148 49,735 0 49,735 -65.73%

Hurricane Housing as Plan 94,241 0 0 0 0 0 0 0.00%

State Housing Initiatives Partnership - Admin 0 0 0 57,858 0 57,858 100.00%

State Housing Initiatives Partnership - Program 0 0 0 765,719 0 765,719 100.00%

Affordable & Workforce Trust 431,500 431,659 0 0 0 0 0 0.00%

Subtotal 4,947,683 4,430,615 3,753,027 3,454,619 6,327,972 2,931 6,330,903 83.26%

ENVIRONMENT

Natural Resources 1,473,216 247,852 228,541 306,263 198,849 159,913 358,762 17.14%

Cooperative Aquatic Plant Program 641,339 546,793 534,780 678,271 590,101 39,000 629,101 -7.25%

Tourist Dev Tax - Lakes 31,342 0 0 0 0 0 0 0.00%

Conservation Trust 37,884 438,903 485,000 70,000 0 70,000 70,000 0.00%

Litter & Marine Debris 0 0 0 0 0 0 0 0.00%

Subtotal 2,183,781 1,233,548 1,248,321 1,054,534 788,950 268,913 1,057,863 0.32%

TOTAL 21,708,498 19,229,726 19,704,972 19,346,982 21,973,078 446,543 22,422,618 15.90%

33




GROWTH MANAGEMENT

TRANSPORTATION

County Engineer 1,565,219 1,451,807 1,484,105 1,441,449 1,441,637 0 1,441,637 0.01%

Road & Bridge 5,317,231 4,985,248 5,391,904 5,751,298 5,560,004 0 5,560,004 -3.33%

Bridge & Concrete 281,346 344,273 344,918 379,586 385,908 0 385,908 1.67%

Maintenance Shop and Warehouse 726,585 673,782 691,595 705,153 704,736 0 704,736 -0.06%

Traffic Operations 867,298 846,336 886,423 930,523 956,465 (1,250) 955,215 2.65%

Mowing - Right of Ways 513,724 543,586 585,767 586,657 588,998 0 588,998 0.40%

County Shell Pit 189,951 319,549 316,826 300,000 288,329 0 288,329 -3.89%

Sebring Parkway Maintenance 158,875 103,992 165,733 163,412 208,132 75,000 283,132 73.26%

Multi Use Path / Sidewalks 98,324 108,522 108,522 139,645 104,526 0 104,526 -25.15%

Interfund Transfers- 110 0 0 45,233 3,044,073 66,433 0 66,433 -97.82%

Budgetary Expenditure Accounts 110 451,515 550,000 200,000 200,000 200,000 0 312,121 56.06%

Subtotal 10,170,068 9,927,095 10,221,026 13,641,796 10,505,168 73,750 10,691,039 -21.63%

SOLID WASTE

Refuse Disposal System 2,437,086 2,537,984 2,851,112 2,688,377 3,082,932 198,388 3,281,320 22.06%

Recycling Operations/Recovery Facility 637,486 591,577 286,671 683,668 636,915 102,378 739,293 8.14%

Solid Waste System Administration 358,620 0 0 0 0 0 0 0.00%

Waste Tire Processing 0 0 0 4,055 1,179 0 1,179 -70.92%

Landfill Closure Program 160,399 90,916 37,080 45,813 40,750 0 40,750 -11.05%

Recycling Grant 70,588 70,588 0 35,500 37,292 0 37,292 5.05%

Refuse Collection Program 4,513,759 4,481,942 4,489,867 4,789,350 4,542,454 0 4,542,454 -5.16%

Asphalt Plant 2,340,088 2,602,714 2,621,825 2,789,000 3,768,089 359,728 4,127,817 48.00%

Interfund Transfers-401 0 0 0 0 0 0 0 0.00%

Budgetary Expenditure Accounts-401 396,272 716,175 365,631 579,561 559,416 0 577,734 -0.32%

Subtotal 10,914,298 11,091,896 10,652,186 11,615,324 12,669,027 660,494 13,347,839 14.92%

DEVELOPMENT DEPARTMENT

County Planning and Development 500,514 798,101 635,635 450,000 407,469 309,962 717,431 59.43%

Zoning Department 652,993 624,068 627,824 622,583 550,584 41,000 591,584 -4.98%

Building Department - 180 723,215 616,026 546,416 569,980 590,742 41,338 642,098 12.65%

Nuisance Abatement 93,000 92,600 93,600 93,600 93,600 0 93,600 0.00%

Subtotal 1,969,722 2,130,795 1,903,475 1,736,163 1,642,395 392,300 2,044,713 17.77%

TOTAL 23,054,088 23,149,786 22,776,687 26,993,283 24,816,590 1,126,544 26,083,591 -3.37%

34




COURTS AND ELECTED OFFICIALS

COURTS

Circuit Court Administration 4,000 4,000 3,500 3,500 3,861 0 3,861 10.31%

Judicial Technology 173,860 182,322 188,394 197,989 174,474 26,500 200,974 1.51%

County Court Administration 2,350 2,348 2,348 3,341 1,007 0 1,007 -69.86%

State Attorney 15,700 15,700 15,700 15,700 15,700 0 15,700 0.00%

State Attorney Technology 165,350 165,350 140,350 142,300 142,300 0 142,300 0.00%

Public Defender 4,950 4,950 4,950 4,950 4,550 0 4,550 -8.08%

Public Defender Technology 82,550 82,550 82,550 82,550 88,962 0 88,962 7.77%

Pre-Trial Release Circuit Criminal 0 0 0 95,395 97,022 0 97,022 1.71%

Cir Ct Family Pre Se Services 52,690 43,960 0 43,960 -16.57%

Guardian Ad Litem Circuit Juvenile 1,240 1,340 990 990 698 0 698 -29.49%

Gen Oper Public Law Library 0 0 0 0 0 0 0 0.00%

Law Library - 177A 24,800 24,800 25,000 23,800 22,100 0 22,100 -7.14%

Law Library - 176 28,430 24,050 23,250 23,250 23,250 0 23,250 0.00%

Law Library CCC - 005 100,411 84,037 101,669 90,165 85,158 0 85,158 -5.55%

Legal Aid 0 0 0 0 0 0 0 0.00%

Legal Aid - 177B 44,200 44,200 46,500 46,510 47,440 0 47,440 2.00%

Teen Court - 177C 24,800 24,800 25,000 23,800 22,100 0 22,100 -7.14%

Conflict Council 3,600 0 0 0 0 0 0 0.00%

Conflict Council Technology 0 3,367 0 0 0 0 0 0.00%

Innonvations & Support 154,199 25,200 80,000 65,000 65,000 0 65,000 0.00%

Subtotal 830,440 689,014 740,201 871,930 837,582 26,500 864,082 -0.90%

ELECTED OFFICIALS

Clerk to Board 2,533,066 2,380,485 2,365,014 2,587,736 2,609,192 0 2,609,192 0.83%

Clerk to Board - Other 753,031 712,047 747,207 531,628 548,594 0 548,594 3.19%

Courthouse Security Sheriff 1,032,802 839,326 867,281 853,917 900,695 0 900,695 5.48%

Sheriff 14,451,008 13,622,645 13,576,152 14,075,373 14,641,500 0 14,641,500 4.02%

Detention and Correction 8,884,868 8,194,640 8,213,178 8,278,887 8,788,739 0 8,788,739 6.16%

Tax Collector 1,575,110 1,530,694 1,469,450 1,505,430 1,505,430 0 1,505,430 0.00%

Property Appraiser 2,699,993 2,520,302 2,495,757 2,769,537 2,723,310 0 2,723,310 -1.67%

Supervisor of Elections 754,539 944,160 702,947 854,351 760,378 0 760,378 -11.00%

Subtotal 32,684,417 30,744,299 30,436,986 31,456,859 32,477,838 0 32,477,838 3.25%

TOTAL 33,514,857 31,433,313 31,177,187 32,328,789 33,315,420 26,500 33,341,920 3.13%

35




OTHER AGENCIES

Medical Examiner 236,372 267,489 268,116 287,488 327,365 0 327,365 13.87%

Health Unit 270,000 243,000 243,000 243,000 243,000 0 243,000 0.00%

Industrial Development Authority 266,002 239,401 215,461 0 240,377 0 240,377 100.00%

Community Redevelopment Agency-Sebring 284,425 453,792 431,537 328,864 315,690 0 315,690 -4.01%

Community Redevelopment Agency-Avon Park 94,715 89,460 82,153 79,482 81,167 0 81,167 2.12%

Sebring Regional Airport/Industrial Park CRA 352,882 355,811 354,364 361,208 361,208 0 361,208 0.00%

Community Redevelopment Agency-AP Airport 22,281 23,735 23,932 24,341 24,921 0 24,921 2.38%

Community Redevelopment Agency-AP Southside 31,401 25,195 18,863 15,753 12,293 0 12,293 -21.96%

TOTAL 1,558,078 1,697,883 1,637,426 1,340,136 1,606,021 0 1,606,021 19.84%

DEBT SERVICE

Ball Field Complex Debt 320,995 320,995 320,995 264,500 272,498 0 272,498 3.02%

Long Term Notes - 151 751,700 1,455,302 1,520,485 1,479,728 1,478,108 0 1,478,108 -0.11%

Long Term Notes - 401 349,708 349,709 174,855 0 0 0 0 0.00%

Bond Administration Costs 0 0 0 0 0 0 0 0.00%

2002 Bond Issue Debt Service 1,955,829 0 0 0 0 0 0 0.00%

TOTAL 3,378,232 2,126,006 2,016,335 1,744,228 1,750,606 0 1,750,606 0.37%

INFRASTRUCTURE CAPITAL PROJECTS

Sebring Parkway Phase II 0 0 0 0 0 0 0 0.00%

Transportation Projects -151 18,639,878 20,810,647 20,316,364 20,854,702 3,038,141 8,252,737 11,290,878 -45.86%

Shell Pit Mitigation - 151 0 93,658 60,903 60,903 0 0 0 -100.00%

Sebring Airport Authority 54,349 54,349 0 0 0 0 0 0.00%

Avon Park Airport 250,000 250,000 250,000 250,000 0 250,000 250,000 0.00%

Utilities - General 0 0 0 0 0 0 0 0.00%

Recreation Department - 151 659,571 724,436 600,100 731,202 427,932 0 427,932 -41.48%

Parks Projects - 151 1,319 0 51,200 35,300 0 0 0 -100.00%

Natural Resources - 151 120,000 120,000 75,975 510,000 0 0 0 -100.00%

Libraries - Lake Placid - 151 0 0 0 6,000 0 0 0 -100.00%

Courthouse Facilities -151 0 0 0 0 0 145,000 145,000 100.00%

Central Services - 151 401,702 484,572 290,000 0 0 0 0 0.00%

Property Appraiser - 151 0 0 0 0 0 0 0 0.00%

Public Defender - 151 650,000 0 0 0 0 0 0 0.00%

Elections - 151 650,491 637,260 700,447 547,781 0 547,781 547,781 0.00%

Building Operation & Maintenance - 151 0 0 2,713,174 2,853,000 0 8,604,207 8,604,207 201.58%

2002 Bond Trans Out 651,943 0 0 0 0 0 0 0.00%

Veterans Services 151 50,982 50,982 0 0 0 0 0 0.00%

Sheriff - 151 0 0 250,000 250,000 0 250,000 250,000 0.00%

36




County Jail - 151 532,359 66,383 0 281,600 0 375,000 375,000 33.17%

Medical Examiner 0 0 0 0 0 0 0 0.00%

Emergency Operations Ctr - 151 55,000 55,000 221,362 0 0 0 0 0.00%

Communications Program - 151 59,000 0 37,907 1,706,459 1,163,123 0 1,163,123 -31.84%

Emergency Medical Services - 151 402,508 607,534 1,439,600 1,257,900 0 1,201,850 1,201,850 -4.46%

Animal Control - 151 0 0 13,695 0 0 0 0 0.00%

Interfund Transfer - 151 117,571 72,395 75,267 75,266 75,266 0 75,266 0.00%

Budgetary Expenditure Accounts - 151 200,000 400,000 1,250,000 250,000 250,000 0 250,000 0.00%

TOTAL 23,496,673 24,427,216 28,345,994 29,670,113 4,954,462 19,626,575 24,581,037 -17.15%

IMPACT FEES

Transportation Impact Fees - Avon Park 188,326 238,606 245,228 240,238 83,376 0 83,376 -65.29%

Transportation Impact Fees - Lake Placid 421,561 421,937 422,922 371,012 14,815 0 14,815 -96.01%

Transportation Impact Fees - Sebring Area 1,038,453 49,810 48,994 49,229 49,292 0 49,292 0.13%

Parks & Rec Impact Fees - Avon Park 4,484 4,492 4,508 4,529 4,536 0 4,536 0.15%

Parks & Rec Impact Fees - Lake Placid 34,340 1,667 1,673 1,681 1,681 0 1,681 0.00%

Parks & Rec Impact Fees - Sebring Area 16,446 16,461 16,501 16,569 16,569 0 16,569 0.00%

Correctional Facilities Impact Fees 101,159 4,405 4,449 4,467 4,467 0 4,467 0.00%

Fire Services Impact Fees 5,067 9,133 4,712 4,735 4,735 0 4,735 0.00%

Library Impact Fees 36,156 36,218 1,686 1,694 1,694 0 1,694 0.00%

Law Enforcement Impact Fees 30,912 1,283 1,305 1,311 1,311 0 1,311 0.00%

Emergency Medical Services Impact Fees 639 1,005 1,009 1,014 1,014 0 1,014 0.00%

TOTAL 1,877,543 785,017 752,987 696,479 183,490 0 183,490 -73.65%

SPECIAL DISTRICTS

ROAD AND DRAINAGE DISTRICTS

Thunderbird Hill Wastewater Treatment 17,247 16,910 17,137 17,198 17,450 0 17,450 1.47%

Sun 'N Lakes 1-20 Improvement Trust 56,616 56,669 56,828 56,919 57,118 0 57,118 0.35%

Highlands Park Estates Spc Ben Dist 191,638 61,000 241,560 242,960 61,300 379,274 440,574 81.34%

Orange Blossom Est Unit 12 Sp Benefit Dist 6,437 6,460 7,974 8,005 8,005 0 8,005 0.00%

Sebring Acres Special Benefit 32,736 9,500 9,500 9,500 9,600 0 9,600 1.05%

Sun'n Lakes LP Recreational Dist 96,338 108,348 82,360 81,927 99,875 0 99,875 21.91%

Orange Blossom Est Sp Benefit Dist (1-19) 21,484 107,193 107,173 63,717 19,800 43,482 63,282 -0.68%

Red Hill Farms Improvement District 20,340 10,621 9,635 9,635 9,600 0 9,600 -0.36%

Placid Lakes Special Benefit Dist 327,108 351,397 162,925 246,010 259,052 0 259,052 5.30%

Istokpoga Marsh Imp Dist 201,654 175,531 181,422 315,170 904,960 0 904,960 187.13%

Avon Park Estates Spc Ben Dist 664,807 232,762 208,362 209,784 130,700 0 130,700 -37.70%

Hickory Hills Special Tax District 2,377 2,328 2,328 2,330 2,330 0 2,330 0.00%

Highlands Park Estates Imp Trust Account 156,466 157,230 20,430 20,430 20,000 0 20,000 -2.10%

Subtotal 1,795,248 1,295,949 1,107,634 1,283,585 1,599,790 422,756 2,022,546 57.57%

37




LIGHTING DISTRICTS

Highway Park Lighting Sp Benefit Dist 27,905 10,756 9,885 9,557 9,830 0 9,830 2.86%

Lake Haven Estates Sp Benefit District 25,363 13,278 11,878 11,305 11,470 0 11,470 1.46%

Sebring Hills Lighting Sp Benefit Dist 13,472 25,588 25,588 25,590 26,100 0 26,100 1.99%

Orange Villa Spc Benefit Dist 1,834 1,946 1,793 1,687 1,745 0 1,745 3.44%

Sebring Country Estates Special District 43,599 26,604 26,370 23,805 24,558 0 24,558 3.16%

Subtotal 112,173 78,172 75,514 71,944 73,703 0 73,703 2.44%

FIRE DISTRICTS

West Sebring Fire District 418,123 414,487 452,886 423,014 382,445 453,088 836,937 97.85%

Lake Placid Fire District 257,857 166,254 229,392 246,906 305,018 30,000 336,422 36.26%

Lorida Special Benefit Fire District 93,611 87,877 87,529 98,880 92,040 7,022 99,062 0.18%

Venus Special Benefit Fire District 30,203 30,285 29,603 39,529 32,301 7,933 40,234 1.78%

Lake Placid Sun 'N Lakes Fire Dist 199,813 193,565 195,129 223,171 206,052 89,254 295,306 32.32%

Desoto City Spc Fire Dist 182,262 190,334 205,473 218,324 219,740 14,322 235,725 7.97%

Highlands Lakes Fire District 217,290 241,179 212,798 257,192 256,965 14,322 272,919 6.11%

Placid Lakes Fire District 99,940 100,003 103,496 107,436 92,657 15,000 107,657 0.21%

Leisure Lakes Spc Tax Fire District 137,345 136,944 136,689 156,268 114,587 42,011 156,598 0.21%

Highlands Park Estates Spc Tax Fire Dist 62,179 48,757 49,447 69,359 60,328 5,000 65,328 -5.81%

Subtotal 1,698,623 1,609,685 1,702,442 1,840,079 1,762,133 677,952 2,446,188 32.94%

TOTAL 3,606,044 2,983,806 2,885,590 3,195,608 3,435,626 1,100,708 4,542,437 42.15%

GRAND TOTAL 121,215,802 114,718,963 116,972,853 122,752,786 100,130,919 22,436,541 122,720,903 -0.03%

38

YEAR FYTOTAL

COUNTY UNINCORPTOTAL POP %

CHANGEUNINCORP % CHANGE INCORP

*1980 81/82 47,528 29,808 -1.53% -0.55% 17,7201981 82/83 49,759 31,543 4.69% 5.82% 18,2161982 83/84 52,037 33,130 4.58% 5.03% 18,9071983 84/85 53,282 34,196 2.39% 3.22% 19,0861984 85/86 56,009 36,612 5.12% 7.07% 19,3971985 86/87 58,151 38,736 3.82% 5.80% 19,4151986 87/88 60,192 40,768 3.51% 5.25% 19,4241987 88/89 63,540 43,929 5.56% 7.75% 19,6111988 89/90 66,380 46,803 4.47% 6.54% 19,5771989 90/91 69,089 49,311 4.08% 5.36% 19,778*1990 91/92 68,432 50,322 -0.95% 2.05% 18,1101991 92/93 70,609 52,308 3.18% 3.95% 18,3011992 93/94 72,157 53,966 2.19% 3.17% 18,1911993 94/95 73,203 54,793 1.45% 1.53% 18,4101994 95/96 75,860 57,493 3.63% 4.93% 18,3671995 96/97 77,270 58,832 1.86% 2.33% 18,4381996 97/98 77,914 59,504 0.83% 1.14% 18,4101997 98/99 79,465 61,099 1.99% 2.68% 18,3661998 99/00 80,458 61,952 1.25% 1.40% 18,5061999 00/01 81,143 62,713 0.85% 1.23% 18,430*2000 01/02 87,366 67,489 7.67% 7.62% 19,8772001 02/03 88,212 68,288 0.97% 1.18% 19,9242002 03/04 89,038 69,011 0.94% 1.06% 20,0272003 04/05 90,393 70,258 1.52% 1.81% 20,1352004 05/06 92,057 71,531 1.84% 1.81% 20,5262005 06/07 93,456 72,793 1.52% 1.76% 20,6632006 07/08 96,672 75,900 3.44% 4.27% 20,7722007 08/09 98,727 77,642 2.13% 2.30% 21,0852008 09/10 100,207 79,150 1.50% 1.94% 21,0572009 10/11 99,713 78,851 -0.49% -0.38% 20,862*2010 11/12 98,786 77,236 -0.93% -2.05% 21,5502011 12/13 98,712 77,132 -0.07% -0.13% 21,5802012 13/14 98,955 77,041 0.25% -0.12% 21,914

**2013 14/15 99,092 77,026 0.14% -0.02% 22,066*Actual Census Count (once every 10 years).**Data Source: Office of Economic & Demographic Research (http://www.state.fl.us/edr/population.htm)

Note: All other population numbers are estimates/projections based upon data from the Bureau of Economic and Business Research (BEBR).

POPULATION DATA FOR HIGHLANDS COUNTY

0

20,000

40,000

60,000

80,000

100,000

120,000

*1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 *2010 **2013

HIGHLANDS COUNTYPOPULATION GROWTH

Total County Unincorporated Incorporated

39

Highlands County


40

Highlands County


206

BUDGET

226

1

243

1

416

2

417

3

418

1

ROLLOVER ROJECT

543

2

ROLLOVER ROJECT

544

3

ROLLOVER ROJECT

545

1

551

1

560

2

561

3

562

Highlands County


564

.

Hearings, Remote

that the entire

ghlands unty

569

Highlands County


606

1.

2.

3.

4.

613

5

617

6

618

7

619

8

620

9

621

0

622

1

623

2

624

3

625

4

626

5

627

16

628

7

629

18

630

19

631

0

632

1

633

2

634

3

635

4

636

25

637

26

638

7

639

28

(S)

( ) ( )

640

29

641

0

(S)

( ) ( )

642

2

660

3

661

4

662

5

663

fails.

668

Highlands County


690

1

695

2

696

3

728

4

729

5

730

6

731

7

732

8

733

8

734

9

735

1

746

2

747

3

748

4

749

5

750

3

787

4

788

5

789

6

790

1

800

2

801

3

802

4

803

5

804

Highlands County


862

ACCRUAL BASIS – A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or spent. AD VALOREM – A tax levied by a local government against the assessed valuation of real or personal property. The amount of tax is determined by multiplying the taxable value of the property times the millage rate. AGGREGATE MILLAGE RATE – A rate obtained by dividing the sum of all ad valorem taxes levied by the Board of County Commissioners by the taxable value of the county or municipality. Expresses an average tax rate. ALS – Advanced Life Support ANNUAL CAPITAL BUDGET – Represents the first year of a Capital Financial Strategy. It is the appropriation of capital spending legally adopted by the Board of County Commissioners. The annual capital budget is adopted in conjunction with Highlands County’s annual operating budget and provides legal authority to proceed with specific projects. APPROPRIATION – A legal authorization granted by the Board of County Commissioners to make expenditures and to incur obligations for specific purposes. Appropriations are usually made for fixed amounts and are typically granted for a one year period in operating funds. ASSESSED VALUATION – A valuation established for real estate or specific personal property by a government as a basis for levying taxes. Assessed valuation is required to approach 100% of market value in Florida. Real property is appraised as to assessed valuation at time of construction or major remodeling, and all property is reappraised as to assessed valuation every two years. BCC – Board of County Commissioners BALANCED BUDGET – Is when there is neither a budget deficit nor a budget surplus – when revenues equal expenditures ("the accounts balance") – particularly by a government. BIENNIAL BUDGET PROCESS – Is one in which two (2) one-year budgets are prepared at the same time. The first year is adopted as part of the Truth In Millage (TRIM) requirements, with the second year being used as a planning tool, reviewed and updated, if necessary, midway thru the biennium. BOND – A written promise to pay a sum of money on a specific date at a specified interest rate as detailed in a bond ordinance. BUDGET – A plan of financial operation embodying an estimate of proposed expenditures for a given period and the proposed means of financing those expenditures. The budget plan is identified as to the period for which it will be effective and if it is a proposed budget or has been approved and adopted by the Board of County Commissioners. The budget, once adopted,

863

is the legal authorization to expend county funds during the fiscal year identified. The budget may be amended during the fiscal year by the Board of County Commissioners and/or management but only within the limitations specified by state statutes and/or administrative rules and regulations. BUDGET ISSUES REQUESTS – Includes personnel and non-personnel funding required for new programs or major enhancement of current programs. BUDGET MESSAGE – A general discussion of the proposed budget as presented in writing by the budget-making authority to the legislative body. CAPITAL EXPENDITURES – Expenditures of a non-recurring nature related to the acquisitions, expansion or major rehabilitation of an element of the County’s physical structure, sometimes referred to as the infrastructure. Examples include: buildings, roads, bridges, parks, computers and communications networks. These capital expenditures fall into either of two categories: Capital Improvements, which are included in the ten-year CFS or Capital Outlay, which is included in the departmental operating budgets and includes such items as furniture and small equipment. CAPTIAL ASSETS – A new or rehabilitated physical asset that is non-recurring in nature has a useful life of more than three to five years and costs at least $5,000. CAPITAL PROJECT – An undertaking to acquire a capital asset. Examples include the construction of public buildings and improvements to major roads. Highlands County’s capital financial strategy is a multiyear program that identifies capital projects to be funded during a ten - year period. It specifies each capital project to be undertaken, the year it will begin, the anticipated expenses for each year and the method of financing. The Capital Financial Strategy is a resource that helps Highlands County government ensure that decisions on project and funding are made wisely and is a well planned manner. CASH BASIS – A basis of accounting where transactions are recognized only when cash is increased or decreased. CDBG – Community Development Block Grant CAPITAL IMPROVEMENTS BUDGET – Includes budgets for the purchase of land or land improvements thereto; purchase or construction of buildings or major improvements thereto; purchase or construction of improvements to items other than buildings such as roads, bridges, sidewalks and fences, etc. CAPITAL IMPROVEMENT PROGRAM – A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long-term work program or otherwise. It sets forth each project or other contemplated expenditure in which the government is to have a part and specifies the full resources estimated to be available to finance the projected expenditures.

864

COMPREHENSIVE PLAN – Growth Management Act approved by the State legislature that requires each local government entity to assure that all future development is consistent with its adopted Comprehensive Plan governing future land use, infrastructure, natural resource protection, affordable housing, transportation facilities, recreation, and intergovernmental coordination. The major planning functions associated with plan implementation are plan management, vesting, land use amendments, community studies, land development regulations, environmental clearance, growth monitoring, and information services. CONSTITUTIONAL OFFICERS – Elected County government officials other than members of the Board of County Commissioners. The Clerk of Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector are Constitutional Officers, so called because their positions are authorized in the state Constitution. CONTINUATION BUDGET REQUESTS – Includes personnel and non-personnel funding required to continue the existing level of service in the department/division. The non-personnel portion of the request is limited to 100% of the aggregate budget for those controllable accounts (i.e. office supplies, travel, etc.) in the previous year. COMMERCIAL PAPER – A competitive short term loan financing alternative issued at a variable interest rate. Commercial paper generally offers low cost borrowing, flexible terms and repayment schedules, and a simplified application process than other instruments to finance capital and other governmental projects. COST CENTER – An individual set of expenditure accounts within a fund, separated for the purpose of identifying specific resources that will be applied toward a specific goal. DEBT SERVICE – Payments of principal and interest to bondholders. Generally, annual debt service for a bond issue is comprised of two payments each year. One payment on the bond anniversary date will be equal to the annual principal payment and six months of accumulated interest and the other payment will be 180 days later and be equal to six months of accumulated interest. DEPENDENT SPECIAL DISTRICT – A special district whose governing body and budget are established by the Board of County Commissioners.

DEPRECIATION – The decrease in value of assets (fair value depreciation), and the allocation of the cost of assets to periods in which the assets are used (depreciation with the matching principle).

DROP – Deferred Retirement Option Program provides you with an alternative method for payment of your retirement benefits for a specified and limited period if you are an eligible Florida Retirement System (FRS) Pension Plan member. EMS – Emergency Medical Services

865

ENCUMBRANCE – The commitment of appropriated funds to purchase an item or service. ENTERPRISES – Activities of government that are operated and accounted for as businesses. Enterprises rely principally on user fees earned by the business to fund operations. EOC – Emergency Operations Center FBIP – Florida Boating Improvement Program FDEP – Florida Department of Environmental Protection FDOT – Florida Department of Transportation FLGIT – Florida Local Government Investment Trust FEMA – Federal Emergency Management Agency EXPENDITURES – Decreases in net financial resources. Expenditures include operating expenses, capital outlays and debt service payments that require current or future use of current assets. FISCAL YEAR – A 12 month period of time to which the annual operating budget applies and at the end of which a government determines its financial position and the results of its operations. In Florida, the fiscal year for all local governments extends from October 1 to September 30. FIXED ASSETS – Assets of a long-term character such as land, buildings, improvements other than buildings, machinery, equipment and furniture whose life expectancy is in excess of one year. Such assets are entered into a computer program that controls the location and value of each item until it looses its usefulness, and is traded on a replacement asset or is otherwise disposed of. FUNCTIONS – Expenditure classification according to the principal purpose for which the expenditures were made. The Florida Uniform Accounting System specifies the functions to be identified such as: general government service, public safety, physical environment, etc. FUNDAMENTAL SERVICE – A distinct programmatic service of Highlands County Government provided to the public or providing support to the operations and services of other County departments. FUND – A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or

866

attaining certain objectives in accordance with special regulations, restrictions, or limitations of that fund. FUND BALANCE – A term used to express the equity (assets minus liabilities) of governmental type funds and trust funds. GAS TAX – The gas tax imposed for the benefit of Highlands County is 12 cents per gallon made up of the following:

County Taxes Local Option Gas Tax (Chapter 336.025 F.S.) 6 cents

Tax enacted upon notification to State Department of Revenue

Local Option Gas Tax (Chapter 336.025 F.S.) 5 cents

Imposed by extraordinary vote of the Board of County Commissioners (majority plus one)

State Taxes Ninth Cent Gas Tax (Chapter 336.021(6)) 1 cent

Board of County Commissioners has elected to impose this tax on motor fuel also by extraordinary vote

County Gas Tax (Chapter 206.40 F.S.) 1 cent

Tax enacted upon approval of Florida Statute

Constitutional Gas Tax (Chapters 206.41 & 206.47 F.S.) 2 cents

Tax enacted by Florida Statute All gas tax is collected by the State of Florida Department of Revenue, and the revenue from each is distributed, less a service fee, to the counties according to a specific formula. GASB – Governmental Accounting Standards Board. GENERAL OBLIGATION BONDS – Debt which is secured by the full faith and credit of government. Property taxes are the main revenue used to repay general obligation bonds, but if bondholders are not repaid, they have a legal claim against any revenue or asset of the government. G.O. debt, as these bonds are called, may only be incurred in Florida if approved by voters in a referendum.

867

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) – Uniform standards of and guidelines for financial accounting and reporting under which Highlands County budget is prepared and adopted. These standards govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practices and procedures. GAAP provides a standard by which to measure financial presentations. The primary authoritative statement on the application of GAAP to state and local governments are National Committee on Governmental Accounting (NCGA) pronouncements. Every government should prepare and publish financial statements in conformity with GAAP. The objectives of government GAAP financial reports are different from, and much broader than, the objectives of business GAAP financial reports. HIS – Health Insurance Subsidy IMPACT FEES – Fees charged to land developers at the time of development for the cost of construction of facilities to serve the development site (roads, parks, etc.). INFRASTRUCTURE SURTAX – A one-cent sales tax levied by Highlands County for the purpose of construction, reconstruction, or improvements of public facilities, pursuant to Chapter 212.055, Florida Statutes. INTERGOVERNMENTAL REVENUE – Revenue collected by one government and distributed (usually through some predetermined formula) to another level of government(s). INTERNAL SERVICE FUND – A fund used to account for goods or services given to one department by another on a cost reimbursement basis.

LEGALLY ADOPTED BUDGET – The total of the budgets of each County fund including budgeted transactions between funds. MAJOR FUND – Funds whose revenues, expenditures/expenses, assets, or liabilities (excluding extraordinary items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds. Any other fund may be reported as a major fund if the government's officials believe that fund is particularly important to financial statement users. MERIT INCREASE – An upward incremental pay for employees within a given salary range in recognition of a period of satisfactory employment. MILLAGE RATE – A rate expressed in thousands. As used with ad valorem (property) taxes, the rate expresses the dollars of tax per one thousand dollars of taxable values. MODIFIED ACCRUAL BASIS – The basis of accounting adopted for governmental funds and used in measuring financial position and operating results. Revenues are recognized when they become both measurable and available to finance expenditures of the current period. Expenditures are recognized when the related fund liability is incurred with a few exceptions.

868

All governmental and expendable trust funds are accounted for using the modified accrual basis of accounting. NET BUDGET – The legally adopted budget less all interfund transactions. These amounts in the budget represent transfers and interfund reimbursements which appear in both fund budgets and therefore inflate the budget total. By subtracting these amounts from the legally adopted budget, the net budget reflects the current position of the operating costs of the county. OBJECTIVES – A broad, yet measurable, statement of the actual programmatic services a County department is striving to provide. OMB – Office of Management and Budget OPERATING CAPITAL BUDGETS – Includes budgets for purchase of machinery, equipment, furniture and vehicles that are to be used in the operations of the department/division. These items cost $1,000 or more and have a useful life of one year or more. OPERATING TRANSFERS – Legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended, transfers of tax revenues from a Special Revenue Fund to a Debt Service Fund, transfers from the General Fund to a Special Revenue or Capital Projects Fund, operating subsidy transfers from the General or a Special Revenue Fund to an Enterprise Fund, and transfers from an Enterprise Fund, other than payments in lieu of taxes, to finance General Fund expenditures. PERFORMANCE MEASURES – A unit of measurement used in decision making that will ultimately improve service performance. The intended result is more effective and efficient services - services that are more responsive to the needs and desires of the community, and that return more to the community for each tax dollar. PERSONNEL:

Authorized Positions – Number of positions authorized for a department/division. They may be full time or part time positions which are filled all year long rather than only seasonal or temporary positions. Full-Time Equivalent (FTE) – A full time position requires 80 or more hours per pay period (14 days) and is considered 1.00 FTE or 100%. All positions requiring less than 80 hours per pay period are considered part time and are designated as a percentage of full time. Therefore, a position requiring only 40 hours per pay period is designated as 0.50 FTE or 50% of a full time position. A total of all the percentages for all positions gives the total full time equivalent positions assigned to a department.

PGIT – Preferred Government Insurance Trust PEORP – Public Employee Optional Retirement Program

869

RESERVE FOR CONTINGENCIES – An amount set aside, consistent with statutory authority that can subsequently be appropriated to meet unexpected needs. REVENUE BONDS – Debt which is secured only by specific identified revenues. Revenue bonds are explicitly not secured by the full faith and credit of the government. If bondholders are not repaid, they have a legal claim only against the particular revenues used to secure the debt. REVENUES – (1) Increases in governmental fund type net assets from other than expenditure refunds and residual equity transfers. Under National Committee on Governmental Accounting (NCGA) Statement 1: general long-term debt proceeds and operating transfers-in are classified as "other financing sources" rather than revenues. (2) Increases in proprietary fund type net total assets from other than expense refunds, capital contributions, and residual equity transfers. Under NCGA Statement 1: operating transfers-in are classified separately from revenues. ROLLED-BACK RATE – The millage rate which would generate the same ad-valorem tax revenue as was generated the previous year excluding changes in taxable valuation resulting from new construction, annexation or de-annexation. If the proposed aggregate millage rate exceeds the aggregate rolled-back rate, then by law the advertisement for the public hearings to adopt the millage and budget must contain a prominent notice of the tax increase. The advertisement must state the percentage by which the rolled-back rate is exceeded as the percentage of the proposed tax increase. The rolled-back rate is used in the same manner for individual millage levies. SALES TAX – Taxes imposed upon the sale of designated goods, rentals, leases and specific services as part of the sale (Section 212.054 F.S.). These taxes are collected and retained by the State with the exception of the Local Government Half-Cent Sales Tax Program (effective July 1, 1988) which returns to the cities and counties almost all the funds collected for that portion of the tax on the basis of specific formulas. In Florida, local governments may use the half-cent sales tax for any lawful purpose. The Local Option Sales Tax program is a county levied tax which allows counties to levy, for a period up to 15 years, a one cent discretionary surcharge on all transactions subject to taxation under Florida Statutes, Section 212.054. However, the maximum amount to be taxed per transaction is limited to $5,000. Highlands County adopted the additional one cent sales tax for a fifteen year period which was passed by a majority vote of the residents on August 22, 1989. It became effective November 1, 1989. A subsequent referendum vote extended the local option sales tax for an additional fifteen years to 2019. The local option sales tax may be used only for capital improvements. SHIP – State Housing Initiatives Partnership. Created by the Florida Legislature in the Sadowski Housing Act. SPECIAL ASSESSMENTS – Collections resulting from compulsory levies against certain properties to defray all or part of the cost of specific improvements or services presumed to be of general benefit to the public and of special benefit to the assessed property.

870

SPECIAL REVENUE FUND – A fund that is legally restricted for a specific purpose only and are utilized to account for the proceeds for these funds. (Does not include expendable trusts or capital projects.) STATE SHARED REVENUES – Revenues collected by the state and proportionately shared with counties and/or municipalities on the basis of specific formulas. Such revenues include: Intangible Personal Property Taxes, Insurance Agents County Licenses, Mobile Home Licenses, Alcoholic Beverage Licenses and Local Government Half-Cent Sales Tax. STATUTE – A written law enacted by a duly organized and constituted legislative body. TAX RATE – The amount of tax stated in terms of a unit of the tax base; for example, five mills equal five dollars per thousand of taxable value. TAXES – Compulsory charges levied by a government for the purpose of financing services performed for the common benefit. This term does not include specific charges made against particular persons or property for current or permanent benefits such as special assessments. Neither does the term include charges for services rendered only to those paying such charges as, for example, sewer service charges. TAXABLE VALUATION – The value used for computing the ad-valorem taxes levied against property. The taxable value is the assessed value less any exemptions allowed by law. The most common exemption is the $50,000 homestead exemption allowed if the owner uses the property as the principal residence. The first $25,000 homestead exemption applies to all property taxes, including school district taxes. The additional homestead exemption, up to $25,000, applies to the assessed value between $50,000 - $75,000 and only to non-school taxes. There are also exemptions for disability, government owned and non-profit owned property. TRANSFERS IN/OUT – Amounts transferred from one fund to another to assist in financing the services of the recipient fund. Transfers do not constitute revenues or expenditures of the governmental unit but only of the individual funds. Thus, they are budgeted and accounted for separately from other revenues and expenditures. TRIM – Truth in Millage UNINCORPORATED AREA – That portion of the County which is not within the boundaries of any municipality. USER FEES – A charge to a customer for a service that is provided.

871

Highlands County


872

Highlands County

TITLE PAGE #

Animal Control 337Animal Control 151 676Asphalt Plant 531Avon Park Airport 151 646Avon Park Estates Special Benefit District 711Ball Field/Complex Debt 603Board Attorney 221Board of County Commissioners 207Bridge & Concrete 451Budgetary Expenditure Accounts - 005 266Budgetary Expenditure Accounts - 110 493Budgetary Expenditure Accounts - 401 537Budgetary Expenditure Accounts 151 678Building Department - 180 553Building Operations/Maintenance 151 657Central Services 252Central Services 151 654Children's Advocacy Center 315Children's Services Council 387Circuit Court Administration 565Circuit Court Family Prgram Services 578Clerk to Board 587Clerk to Board Other Services 588Communications Program 289Communications Program 151 670Community Program Housing 398Community Program Services 395Confiscated Property - Federal 297Confiscated Property - State 298Conservation Trust 427Cooperative Aquatic Plant Program 419County Administrator 209County Auditors - CPA 224County Court Administration 571County Engineer 431County Extension 267County Fire Coordinator 301

INDEX TO COST CENTERS

FY14-15 Recommended Budget

873

Highlands County

TITLE PAGE #


County Health Dept. 596County Jail ( Maintenance) 309County Jail 151 666County Planning and Development 539County Shell Pit 479Court Facilities - 176 217Courthouse Facilities 213Courthouse Facilities - 151 652Courthouse Security Sheriff 589CRA - Avon Park Airport 601CRA - Avon Park Southside 602CRA - Sebring Regional Airport/Ind Park 600CRA- Avon Park 599CRA- Sebring 598Crime Prevention 294Department of General Services 239Desoto City Special Fire District 772Detention and Correction 591Detention and Correction ( Medical) 311Detention and Correction (Other) 313Division of Forestry 306Domestic Violence Training 296Driver Education Safety 390E-911 Dispatch Center 287E-911 Program - Land 285Elections 151 655Emergency Medical Service 319Emergency Medical Services 151 671Emergency Operations Center 151 669Emergency/Disaster Relief 283Facilities Management 245Fire Departments - VFD #1 299Fire Safety Inspections 307Florida Boating Improvement Program 369Geographic Information System 292Geographic Information Systems 487Guardian Ad Litem Circuit Juvenile 579


874

Highlands County

TITLE PAGE #


Health Care Responsibility Act 383Healthy Families Highlands 391Heartland Library Co-Op 343Hickory Hills Special Benefit District 713Highlands Lakes Fire District 780Highlands Park Estates Improvement Trust Account 714Highlands Park Estates Special Benefit District 693Highlands Park Estates Special Tax Fire District 805Highway Park Lighting District 715Historic Preservation Commission 251Home Investment Partnership 404Hospital District 378Human Resources 227Impact Fee For Correctional Facilities 685Impact Fee For Emergency Medical Services 689Impact Fee For Fire 686Impact Fee For Law Enforcement 688Impact Fee For Libraries 687Impact Fee For Parks & Rec - Avon Park 382Impact Fee For Parks & Rec - Lake Plaicd 683Impact Fee For Parks & Rec - Sebring 684Impact Fee For Transportation - Avon Park 679Impact Fee For Transportation - Lake Plaicd 680Impact Fee For Transportation - Sebring 681Industrial Development Authority 597Innovations & Support 586Interfund Transfers - 005 265Interfund Transfers - 110 492Interfund Transfers - 401 536Interfund Transfers 151 677Intergovernmental Radio Communication Program 282Istokpoga Marsh Improvement District 708Judicial Technology 567Lake Haven Estates Special Benefit District 716Lake Placid Special Benefit Fire District 736Lake Placid Sun 'N Lakes Fire District 760Landfill Closure Program 525


875

Highlands County

TITLE PAGE #


Law Enforcement (Other) 314Law Enforcement ( Maintenance) 312Law Library - 176 582Law Library - 177A 581Law Library CCC - 005 583Legal Aid Program - 177B 584Leisure Lake Special Fire District 796Libraries - Avon Park 345Libraries - Countywide 354Libraries - Lake Placid 351Libraries - Lake Placid 151 651Libraries - Sebring 348Local Emergency Management Agency 273Long Term Notes - 151 604Long Term Notes - 401 605Lorida Special Benefit Fire District 742Maintenance Shop and Warehouse 456Medical Examiner 595Mental Health 382Multi Use Paths/Sidewalks 486Natural Resources 411Natural Resources 151 650Non-Ad Valorem Assessments 233Nu Hope 386Nuisance Abatement 563Office of Management & Budget 225Orange Blossom Est. Special Benefit District (1-19) 702Orange Blossom Est. Unit 12 Special Benefit District 697Orange Villa Special Benefit District 718Parks Administration 371Parks Department 359Parks Department 151 649Placid Lakes Fire District 791Placid Lakes Special Benefit District 705Pre-Trial Release Circuit Criminal 576Property Appraiser 593Public Assistance Program 384


876

Highlands County

TITLE PAGE #


Public Defender 574Public Defender Technology 575Public Information 235Recreation 357Recreation 151 648Recycling Grant 528Recycling Operations/Recovery Facility 513Red Hill Farms Improvement District 704Refuse Collection Program 530Refuse Disposal System 495Right of Way Maintenance 476Risk Management 231Road & Bridge 441Sebring Acres Special Benefit District 698Sebring Country Estates Special District 719Sebring Hills Lighting Special Benefit District 717Sebring Parkway Maintenance 483Shell Pit Mitigation 151 643Sheriff 590Sheriff 151 664Sheriff Education and Training 295Sports Complex 373State Attorney 572State Attorney Technology 573State Housing Initiatives Partnership 400State Housing Initiatives Partnership Admin 408State Housing Initiatives Partnership Program 409State-County Assistance Program 385Sun 'N Lakes 1-20 Improvement Trust 692Sun 'N Lakes LP Recreational District 699Supervisor of Elections 594Tax Collector 592Teen Court - 177C 585Thunderbird Hill Waste Water 691Tourist Development - Arts & Culture 261Tourist Development - Lakes 264Tourist Development - Marketing & Promotion 262


877

Highlands County

TITLE PAGE #


Tourist Development - Operations 257Tourist Development - Promote/Adv Offseason 260Traffic Operations 461Transportation for Disadvantaged Program 388Transportation Projects 151 607Venus Special Benefit Fire District 751Veterans Service Office 379Waste Tire Processing Grant 524West Sebring Special Benefit Fire District 720Zoning Department 547


878

Appendix A

Classification of Expenditures/Object Codes 10 Personal Services

Includes 11 through 25

Expense for salaries, wages, and related employee benefits are provided for all persons employed by the reporting entity whether on full-time, part-time, temporary, or seasonal basis. Employee benefits include employer contributions to a retirement system, social security, insurance, sick leave, terminal pay, and similar direct benefits as well as other costs such as Other Post-Employment Benefits (OPEB) expense accrual, Worker’s Compensation and Unemployment Compensation Insurance.

11 Executive Salaries - Elected Officials

Includes salaries for elected and constitutional officials, and top level management, and if earned, qualification salary for elected officials and constitutional officers.

12 Regular Salaries and Wages

Employees who are or will be members of a retirement system as a condition of employment. Includes all full-time and part-time employees who make up the regular work force.

13 Other Salaries and Wages

Employees who are not or will not be members of a retirement system as a condition of their employment. Includes all full-time and part-time employees who are not part of the regular work force.

14 Overtime

Payments in addition to regular salaries and wages for services performed by non exempt employees in excess of the regular work hour requirement.

15 Special Pay - Holidays

Includes incentive pay for sheriffs, law enforcement officers and firefighters.

16 Compensated Annual Leave

Use this object code to capture payments for non-productive salary-related time.

17 Compensated Sick Leave


879

18 Compensated Compensatory Leave


21 FICA Taxes

Social Security matching/Medicare matching. 22 Retirement Contributions

Amounts contributed to a retirement fund.

23 Life and Health Insurance

Includes life and health insurance premiums and benefits paid for employees.

24 Workers’ Compensation

Premiums and benefits paid for Workers’ Compensation insurance. 25 Unemployment Compensation

Amounts contributed to the unemployment compensation fund. 30 Operating Expenses


Includes expenditures for goods and services, which primarily benefit the current period, and are not defined as personal services or capital outlays.

31 Professional Services

Legal, medical, dental, engineering, architectural, appraisal, technological, and other services procured by the local unit as independent professional assistance even if the service can be procured by a contract. Includes such financial service as bond rating, etc., where the service received is not directly involved with accounting and/or auditing. Includes fees paid for competency and/or psychiatric evaluations and court appointed attorneys.

32 Accounting and Auditing

Generally includes all services received from independent certified public accountants. 33 Court Reporter Services

This includes the costs of appearance fees and transcript fees for in-court proceedings, appeals, and depositions.

880

34 Other Services Custodial, janitorial, and other services procured independently by contract or agreement with persons, firms, corporations, or other governmental units. Does not include contracts or services, which are defined under object codes 31, 32, 33, 46, or 47.

35 Investigations

Cost incurred for confidential matters handled pursuant to criminal investigations.

36 Pension Benefits

Benefits paid to participants in the pension program. 40 Travel and Per Diem

This includes the costs of public transportation, motor pool charges, reimbursements for use of private vehicles, per diem, meals, and incidental travel expenses.

41 Communications Services

Use for internet services, communication devices and accessories as well as for service plans for long distance and local service. Similarly, this code should include charges to maintain the phone systems within the facility and any other electronic signal. Examples: Telephone, internet, cellular telephone, phone charger, telegraph.

42 Freight & Postage Services Use for freight and express charges along with drayage, postage and messenger service. 43 Utility Services

Electricity, gas, water, waste disposal, landfill, and other public and/or private utility services.

44 Rentals and Leases

Amounts paid for the lease or rent of land, buildings, or equipment. This would also include the leasing of vehicles.

45 Insurance

Includes all insurance carried for the protection of the local government such as fire, theft, casualty, general and professional liability, auto coverage, surety bonds, etc.

46 Repair and Maintenance Services

This account code should include costs incurred for the repair and maintenance of buildings, vehicles, and equipment, including all maintenance and service contracts as well as non-capital renovation. This does not include custodial or janitorial services, which are recorded under object code 34 or communication maintenance (phone systems, etc.), which are recorded under object code 41.

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47 Printing and Binding

Costs of printing, binding, and other reproduction services, which are contracted for or purchased from outside vendors. Also, include charges for printing, etc., which are performed by an in-house print shop.

48 Promotional Activities

Includes any type of promotional advertising on behalf of the local unit. 49 Other Current Charges and Obligations

Includes current charges and obligations not otherwise classified. 51 Office Supplies

This object includes materials and supplies such as stationary, preprinted forms, paper, charts, and maps.

52 Operating Supplies

All types of supplies consumed in the conduct of operations. This category may include food, fuel, lubricants, chemicals, laboratory supplies, household items, institutional supplies, computer software, uniforms and other clothing. Also includes recording tapes and transcript production supplies. This does not include materials and supplies unique to construction or repair of roads and bridges.

53 Road Materials and Supplies

Those materials and supplies used exclusively in the repair and reconstruction of roads and bridges.

54 Books, Publications, Subscriptions, and Memberships

Includes books, or sets of books if purchased by set, and not purchases for use by libraries, educational institutions, and other institutions where books and publications constitute capital outlay when the purchases exceed the capitalization threshold. This object also includes subscriptions, memberships, and professional data costs.

54 Training Includes training and educational costs.

59 Depreciation

Depreciation of general fixed assets should not be recorded in the accounts of governmental funds. Depreciation of general fixed assets may be recorded in cost accounting systems or calculated for cost finding analyses; and accumulated depreciation may be recorded in the general fixed assets account group. Depreciation of fixed assets accounted for in a proprietary

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fund should be recorded in the accounts of that fund. Depreciation is also recognized in those trust funds where expenses, net income, and/or capital maintenance are measured.

60 Capital Outlay

Includes 61 through 66 Outlays for the acquisition of or additions to fixed assets. 61 Land

Land acquisition cost, easements, and right-of-way. 62 Buildings

Office buildings, firehouses, garages, jails, zoos, and parks and recreational buildings.

63 Infrastructure

Structures and facilities other than buildings such as roads, bridges, curbs, gutters, docks, wharves, fences, landscaping, light systems, parking areas, storm drains, athletic fields, etc.

64 Machinery and Equipment

Includes motor vehicles, heavy equipment-transportation, other heavy equipment, office furniture and equipment, and other machinery and equipment with a minimum purchase price of $1,000.00. Also includes court recording, duplicating, and transcribing equipment.

65 Construction in Progress

Used to account for undistributed work in progress on construction projects. 66 Books, Publications, and Library Materials

Includes all books, publications, and other media, regardless of value, when purchased for use by libraries, educational institutions, and other institutions or facilities.

67 Works of Art / Collections

Works of art, historical treasures, etc. that (1) are held for the benefit of the public, education or research, rather than for financial gain, (2) are protected, unencumbered, cared for and preserved, and (3) are subject to an organizational policy regarding the proceeds from the sale of the items and acquisition of other collection items.

67 Intangible Assets Per GASB Statement #51

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70 Debt Service

Includes 71 through 73 Outlays for debt service purposes. 71 Principal 72 Interest 73 Other Debt Service Costs 80 Grants and Aids


Includes all grants, subsidies, and contributions to other government agencies/reporting units and private organizations. All Constitutional Fee Officers are considered part of the county government for AFR reporting purposes. Therefore, any exchanges between officers are considered transfers and should not be categorized as grants, subsidies, or contributions. Transfers should be placed in the 91 object code series.

81 Aids to Government Agencies

Includes all grants, subsidies and contributions to other governmental entities/reporting units. Exclude transfers to agencies within the same governmental entity like Constitutional Fee Officer transfers.

82 Aids to Private Organizations

Include all grants, subsidies and contributions to private organizations. 83 Other Grants and Aids

Include all other contributions (not including transfers within the same reporting unit) not otherwise classified.

90 OTHER USES

Includes 91 through 99 91 Intragovernmental Transfers

All Monies exchanged within the same governmental entity (also called AFR reporting unit) should be classified as intragovernmental transfers. Therefore, transfers to Constitutional Fee Officers (including charges for services) are considered intragovernmental transfers for AFR reporting purposes and should be classified as this object code.

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92 Advances

Includes advances to establish working capital and petty cash funds, which are expected to be returned when the fund is liquidated.

93 Nonoperating Interest – Proprietary Funds 94 Nonoperating Grant Expense – Proprietary Funds 95 Other Nonoperating Uses – Proprietary Funds

(Object codes 93, 94, and 95 would be used by proprietary funds only). 99 Other Uses

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Appendix B

Capitalization Policy Fixed assets are specific items of property that:

1. are tangible in nature 2. have a life longer than one year 3. are non-consumable, and 4. have a significant value of $1,000 or more.

The significant value test is important because the County has many individual assets that are tangible and long-lived, but whose value is so small that the time and expense of maintaining detailed accounting and inventory records for them is not justified. Outlays smaller than $1,000, are not capitalized. An exception to the above statements is the purchase of software with a value greater than $25,000 should be capitalized even though it is non-tangible in nature. The purchase of software less than $25,000 is not capitalized. Regarding enterprise funds, additions and betterment to existing fixed assets, which significantly prolong a fixed asset's economic life or expand its usefulness, should be capitalized. Normal repairs that merely maintain the asset in its present condition should be recorded as an expense and should not be capitalized. Capital outlay expenditures are expenditures that result in the acquisition of or addition to the County's general fixed assets. Capital expenditures are classified as follows: Object Code/Description 56100 Land - Land acquisition cost 56101 Land B - Infrastructure costs i.e. right-of-way and easements 56200 Buildings - Office buildings, firehouses, garages, jails, zoos, and park and recreational

buildings. 56300 Infrastructure - Structures and facilities other than buildings such as roads, bridges, curbs,

gutters, docks, wharves, fences, landscaping, lighting systems, parking areas, storm drains, athletic fields etc.

56301 Infrastructure not capitalized - Costs for roads, bridges, curbs, gutters and storm drains

(includes land for these purposes).

Note: There should be no direct charges for materials, supplies, or labor when improvements are constructed by County personnel. See Clerk’s Office Memo Nos. 86-10 and 81-8.

56400 Machinery and Equipment - Includes motor vehicles, heavy equipment, office furniture,

computers and printers.

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Note: Equipment items costing less than $1,000 should be charged to account numbers 55100 (office supplies) or 55200 (operating supplies). These items will not be capitalized nor will they be tagged for the fixed asset inventory system. Computers, printers, scanners and fax machines costing more than $300 but less than $1,000 must be identified as an issue.

56600 Books, Publications, and Library Materials - This includes all books and publications, regardless of value, when purchased for use by libraries, educational institutions, and other institutions or facilities where such items constitute a major capital outlay category. This object code is also used for these items when they exceed $1,000 unit value regardless of the institution or facility purchasing them.

56810 Software – Includes the purchase of software costing $25,000 or greater.

Note: Software costing less than $25,000 should be charged to account numbers 55200 (operating supplies). These items will not be capitalized.

Fixed assets include land, buildings, infrastructure, and machinery and equipment. The value of a fixed asset includes the cost, installation/set-up charges, and shipping for that asset. Trade-ins need to be identified as they increase the value of the fixed assets and the assets traded in must be disposed. Only machinery and equipment are to be physically tagged with a property identification number. For internal control purposes, fixed assets such as land, buildings, and infrastructure are assigned sequential property numbers in the accounting records; however, these assets are not physically tagged with said number. Enterprise funds must recognize the gain or loss on the sale of each asset. Therefore, when budgeting for the disposition of an asset, you must carefully watch the value that is assigned. Governmental funds, however, may budget whatever is received.

Force Account “Force account" construction is the cost of buildings and infrastructure accumulated through construction by County personnel. Materials, supplies and other contractual services that are purchased for the purpose of being converted later into capital assets must be charged to their correct accounts - 54600 (repair and maintenance), 53400 (other contractual services), 54900 (other charges and obligations), and 55200 (operating supplies) and must have a project number assigned. These items should not be charged directly to object accounts 56100 (land), 56200 (buildings), 56300 (infrastructure), and 56400 (machinery and equipment). Requisitions, purchase orders and vouchers must show the project number and description of the project for "force account" construction of general fixed assets. Also, the cost of labor performed for each project must be accumulated by project number for "force account" construction. Hours assigned to each "force account" construction job must be accumulated by project number by the laborer's supervisor. The Accounting Department will accumulate records on each "force account" construction project. The project sheet will show the cost of materials purchased for the project and the cost of labor performed for the project.

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Appendix C

Budget Philosophy and Process

Philosophy Highlands County is committed to providing high levels of service to its residents at the lowest possible cost in order to minimize taxpayer burden. In developing the County's budget, attention is first given to assuring that the budget will be in balance, both on an overall basis and within each of the funds. Any imbalances are eliminated through the Office of Management and Budget prior to submission of the County Administrator's Recommended Budget to the Board of County Commissioners. The Highlands County Office of Management and Budget (OMB) is charged with the responsibility of financial planning for the Board of County Commissioners (the “Board”) including the operating budget, the Capital Financial Statement, and the allocation of financial resources to facilitate accomplishment of the Board’s goals and objectives. It is important to have sound fiscal policies and related procedures that complement the statutory requirements and professional standards which establish a local government’s financial management framework. The OMB staff is constantly pursuing methods to quantify and document fiscal policies and guidelines in order to efficiently and effectively carry out these responsibilities and maintain sound financial practices.

Process Fiscal Year Highlands County's budget is based on a fiscal, rather than calendar, year. The fiscal year begins October 1 and ends September 30. Commencing with fiscal year 2013-2014, the County implemented a new biennial budget process. The biennial budget process is one in which two (2) one-year budgets are prepared at the same time. The first year is adopted as part of the Truth In Millage (TRIM) requirements, with the second year being used as a planning tool, reviewed and updated, if necessary, midway thru the biennium. Statutory Requirements There are two Florida Statutes that regulate local government budget development and implementation, Chapters 129 and 200. Chapter 129, which is entitled “County Annual Budget”, establishes a system for controlling the finances of local governments throughout the state and specifically directs (among other requirements) that a budget be prepared annually, that it be balanced, and that in no case shall total appropriations of any part of the budget be exceeded (Florida Statutes 129.07). Chapter 200, “Determination of Millage”, defines the duty of the Board in setting the rate of taxation. The State of Florida Department of Revenue has implemented Section 12D-17 in the Florida Administrative Code to interpret these requirements and establish guidelines to follow. In addition, Generally Accepted Accounting Principles for state and local governments as set forth by the Governmental Accounting Standards Board provides professional standards that guide public financial management and reporting. Funds Included The County's budget is consolidated and presents planned disposition of all available resources in all funds. The Board of County Commissioners' adopted budget serves as the County's financial plan for the ensuing fiscal year. The first year’s budget of the biennial budget process is still called the Adopted

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Budget whereas the second year budget is referred to as the Planned Budget which allows departments and administration to revisit revenue projections, expenditure needs, fund balances based on more current data, and consideration of issues not known when developing the Planned Budget. Basis of Budgeting The accounts of the County are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts, which comprise its assets, fund equity, revenues and expenditures. The modified accrual basis of accounting is used for Governmental Funds (General, Special Revenue, Debt Service and Capital Projects). Revenues are recognized in the accounting period in which they become available and measurable. Expenditures are recognized in the accounting period in which services or goods are received and liabilities are incurred. The basis of budgeting and the basis of accounting are the same for all funds with the exclusion of Proprietary Funds. Proprietary Funds are budgeted using the modified accrual basis and accounted for using the accrual basis. Adjustments are made at fiscal yearend as part of the fiscal year closing. Revenue is considered available when it is collectable during the current period, and the actual collection will occur either during the current period, or after the end of the period but in time to pay current year-end liabilities. Generally, property taxes, grants and interfund transfers are accounted for on a modified accrual basis. Revenue is generally considered to be measurable if it has the ability to provide a reasonable estimate of actual cash flow. Expenditures, for the most part, are recorded on an accrual basis because they are measurable when they are incurred. In Proprietary Funds (Enterprise and Internal Service), the accrual basis of accounting is used. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenditures are recognized in the accounting period in which they are incurred. The essential elements of the accrual accounting method include:

1. Deferral of expenditures and the subsequent amortization of the deferred costs (pre-paid expenses, supplies, etc.)

2. Deferral of revenues until they are earned (property taxes received in advance) 3. Capitalization of certain expenditures and the subsequent depreciation of the capitalized

assets (depreciation of the cost of machinery) 4. Accrual of revenues that have been earned and expenses that have been incurred.

Adoption Process The annual budget process is based on Florida statutory requirements. In February, OMB, in conjunction with input received from the departments, updates revenue projections for the budget year. OMB finalizes these projections and determines projected available resources for the budget year. During March, the Board provides the County Administrator with the direction and funding priorities for the ensuing fiscal year. Based on this direction, OMB prepares the budget instructions for development of budget requests by the departments. Departmental requests are submitted to the OMB in May. Workshops are held with the departments early in June. The County Administrator's Recommended Budget is presented to the Board in July.

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The Board holds additional work sessions during July and August to review the County Administrator's Recommended Budget and provides OMB with direction in developing the proposed budget, which is made available to the public and forms the basis for the first public hearing in September. Any changes directed by the Board at the first public hearing are incorporated into the tentative budget, which forms the basis for the second public hearing in September. During the second public hearing, the Board adopts a resolution stating the millage rates to be levied and adopts the final budget per Florida statutory requirements which becomes effective on October 1. Amendments after Adoption Florida Statutes specifically direct that upon final adoption, the budget shall regulate the expenditures of the County. The itemized estimates of expenditures shall have the effect of fixed appropriations and shall not be amended or altered or exceeded except as provided by State statute. The Board of County Commissioners at any time within a fiscal year may amend a budget for that year as follows:

1. Appropriations for expenditures in any fund may be increased or decreased and other appropriations in the same fund correspondingly increased or decreased with the approval of the Board. Provided that the total of appropriations of the fund not be changed.

2. Appropriations from the reserve for contingencies may be made to increase the appropriation for any particular expense in the same fund for any lawful purpose, but no expenditures shall be charged directly to the reserve for contingencies.

3. A reserve for future construction and improvements may be appropriated by the Board of County Commissioners for the purpose or purposes for which the reserve was established.

4. Revenues from a source not anticipated in the budget and received for a particular purpose (including, but not limited to, grants, donations, gifts or reimbursement for damages) may, upon approval of a resolution by the Board of County Commissioners, be appropriated and expended for that purpose. Such receipts and appropriations shall be added to the budget of the proper fund. The resolution may amend the budget to transfer revenue between funds to properly account for unanticipated revenue.

5. Increased receipts for Proprietary Funds received for a particular purpose may, upon approval of a resolution by the Board, be appropriated and expended for that purpose, in addition to the appropriations and expenditures provided for in the budget.

6. If an amendment to the budget is required for a purpose not specifically authorized in Florida Statutes 129.06 (2) (a-e), amendment may be authorized by resolution of the Board at a public meeting.

Florida Statutes provide for the delegation of authority to approve certain types of budget transfers. The County Administrator or the Assistant County Administrator act on intradepartmental budget changes that do not alter the total revenue or expenditures budgeted to a cost center. These requests for transfer of funds within a department are first submitted to OMB for review prior to submittal to the Administration. The Board approves all other budget changes (whether they are transfers between departments or alterations of total revenues or expenditures in a fund). These requests for budget amendment are first submitted to the OMB office for review and analysis. After review and signature by OMB, they are forwarded to the County Administrator for review and placed on the agenda for consideration by the Board.

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Financial Policies Relating To FY 14-15 Budget Highlands County's Fiscal Year 2014-2015 budget is being developed using the policies described in this segment of the budget document and is intended to facilitate Management’s actions regarding financial decisions, as well as, to assist other readers of this document in understanding financial matters of the County. The establishment of consolidated financial policies will also have the following beneficial results:

1. Provide a concise reference guide for consideration of County financial matters. 2. Direct attention to overall financial condition rather than a narrow focus on single issues. 3. Exhibit a commitment to sound financial management and fiscal integrity, establishing

credibility and confidence for citizens, investors and rating agencies. 4. Demonstrate compliance with applicable Florida statutory requirements.

The financial policies on the following pages are grouped into the following categories:

I. Budget Policies II. Revenue Policies III. Expenditure Policies IV. Accounts Receivable Policies V. Reserve Policies VI. Fund Balance Policies VII. Debt Policies VIII. Capital Financial Strategies IX. Infrastructure Asset Policy

I. BUDGET POLICIES: Balanced Budget The County's annual budget shall be balanced; that is, the total of the estimated receipts, including balances brought forward shall equal the total of the appropriations and reserves (Florida Statutes, 129.01 (2)(b)). Budget Adoption The County's annual budget shall be adopted by the Board of County Commissioners at a fund level. Estimates of Receipts The estimated receipts shall include a minimum of 95% of anticipated ad valorem tax proceeds. All other anticipated receipts shall be reasonably estimated by the OMB office based on the technique most suitable to the individual revenue source. The full amount (100%) of the estimated balance to be brought forward at the beginning of the fiscal year shall be included in the budget (Florida Statutes, 129.01(2)(b) and 200.065(2)(a)). Contingencies A reserve for contingencies will be budgeted in each operating and capital fund in an amount not more

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than 10% of the total fund budget, for reallocation by the Board as needed to fund unforeseen needs during the budget year (Florida Statutes, 129.01(2(c)(1)). Reserve for Cash Carry Forward A reserve for cash carryover will be budgeted in any fund which requires moneys to be carried forward into the budget year to support operations until sufficient current revenues are received. This reserve will not exceed 20% of the fund budget (Florida Statutes, 129.01 (2)(c)(2)). Budget Transfers The County Administrator has the authority to approve intradepartmental transfers up to $5,000, and the Assistant County Administrator is authorized to act in the absence of the County Administrator. The County Administrator has the authority to approve budget transfers that are mechanical in nature for the assigning of a project number to an approved project/grant already approved in the annual budget. All budget transfers impacting the capital budget including new equipment over $5,000 and utilizing capital savings for items not approved in the budget, interdepartmental transfers and transfers out of contingency accounts or reserves require approval of the Board. New Positions Submission of partial year funding requests for new permanent full time positions is prohibited unless specifically authorized by the Board as a special or emergency need. II. REVENUE POLICIES: General Revenue Policy Generally, the County reviews estimated revenue and fee schedules as part of the budget process. Estimated revenue for each of the various revenue sources is conservatively projected and is updated annually. Proposed rate increases are based upon the following:

1. Fee policies applicable to each fund or activity; 2. The related cost of the service provided; 3. The impact of inflation in the provision of services; and 4. The equity of comparable fees.

The revenue policy of Highlands County includes these informal policies with the addition of maintenance of a diversified and stable revenue system to shelter the County from short run fluctuations in any one revenue source. Revenue Summaries As part of the annual budget process, a consolidated summary of revenue sources will be prepared and incorporated into the County's budget documents. Ad Valorem Taxes The use of ad valorem tax revenues will be generally limited to the General Fund.

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Gas Taxes The use of gas tax revenues will be limited to the construction and maintenance of the county road system. The Transportation Trust Fund will be used to account for revenues and expenditures associated with these activities. Sales Taxes The use of sales tax revenues will be generally limited to the Infrastructure Surtax Fund. This fund will provide for the majority of the Capital Financial Strategy projects. Grants Only such grants that can reasonably be expected to be received will be considered as revenue sources for budget development purposes. The County shall amend its budget to reflect additional grants received during the budget year. Impact Fees Impact fees went into effect on January 1, 2007 on all new construction. These fees have been implemented to help offset the expanding costs associated with the high growth that existing revenue could not keep up with. Impact fees have been implemented in transportation, parks and recreation, law enforcement, corrections, fire services, libraries, and emergency medical service. The moneys collected from these fees will offset costs for new infrastructure and equipment that will be needed to handle future growth. Effective July 1, 2009, the Board of County Commissioners passed Ordinance 08-09-80 to suspend all impact fees, with said vote to sunset in twelve months. In the five (5) subsequent years, the Board has continued to extend the impact fees extension, the last commencing July 1, 2014, and will sunset on June 30, 2015. Restricted Revenues - Bonds Revenues, which have been pledged to bondholders, will be restricted and shall conform in every respect to the established bond covenants. Countywide Revenues Revenues collected on a countywide basis will be allocated only to funds which provide countywide services. User fees, where appropriate, should be established to offset the cost of providing specific services, and will be reviewed annually. Private Contributions The County provides many services to its residents, thereby enhancing the "Quality of Life" in our County. To the extent possible, efforts should be made to secure private contributions, whether in the form of volunteer services, equipment, or cash contributions. This is particularly important in helping to defray the taxpayer burden of providing programs and activities which may be considered primarily "Quality of Life" in nature, such as various community services, cultural events and recreational activities.

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III. EXPENDITURE POLICIES: Community Service Agencies As part of its annual budget process, the County identifies amounts to be granted to various community agencies that provide valuable services to the County's residents. Because of increasing demands on the County's limited resources, the County will provide a maximum of the amount budgeted to each grant recipient. In the event that a grant recipient requests additional county funding, such request will be considered in the next year's budget. Grant Supported County Programs The County conducts a variety of programs which depend on outside grants to the County for partial funding. In the event of reductions in such outside funding amounts, the program service levels will be reduced, and additional County support will not be provided to compensate for the reduction of outside funding. Full recovery of annual and sick leave for employees working under a grant shall be undertaken. Performance Measures The County will develop "performance measures" for each of its departments in order to assure that maximum productivity is being achieved. Where performance measures demonstrate that activities could be more cost effective if provided by outsiders, contracting of such activities will be considered. Performance measures will also provide management with criteria to use in evaluating departmental requests for increased funding levels. Categorization of Services The County will segregate its budget into two distinct categories in order to set priorities for allocating available money. The categories can be generally defined as follows:

1. Continuation Budget - These are services, which are best performed at the County level and are most closely linked to protecting the health and safety of citizens. Legally mandated services or commitments are also included in this category.

2. Budget Issues – These are proposed requests that offer an improvement and/or

enhancement to the programmatic service level. Also included are all operating capital requests.

IV. ACCOUNTS RECEIVABLE POLICIES: EMS BILLING AND COLLECTIONS POLICY The EMS Patient Billing life cycle will consist of four stages: Initial Billing; Collections Agency; Credit Bureau Reporting; and Closed Accounts.

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Stage 1 - Initial Billing This stage of billing will consist of filing any Medicare, Medicaid, or insurance claims, and patient billing. Payments will be pursued for up to 12 months from the original date of service. This stage applies to EMS and contracted billing. Stage 2 - Collections Agency Accounts with no response or without a valid address may be turned over to a contracted collection agency after six months from the date of service. Accounts one year old, having a balance of $10.00 or greater, and no “current activity,” shall be considered delinquent accounts and accordingly turned over to a contracted collection agency which will endeavor to collect on these accounts for a period of up to one year. Any account that is turned over to the collection agency will a) not be billed any further by EMS or the contracted biller; and b) not be included in the active aged receivable amount for the purpose of County financial statements.

Stage 3 - Credit Bureau Reporting Any account that has been with a collection agency for one year without “current activity” shall be reported to a credit bureau as a delinquent account and continue as a collectable account with the collection agency for another year. Stage 4 - Closed Account After two years with the collection agency and with no “current activity,” accounts shall be “closed.” Exceptions to the Four Stages

1. Accounts one year old, having balances of less than $10.00, with no current activity, shall be “closed.”

2. Accounts with the debt forgiven by Board of County Commissioners’ approval will be written off.

Definitions

1. Closed: The account balance is reduced to zero with no expectation of payment. 2. Current Activity: A payment has been received within the last 60 days.

SOLID WASTE COLLECTIONS POLICY This policy addresses only those transactions/accounts less than $30.00. When a cash customer at the landfill has an insufficient amount to pay the tipping fee after depositing solid waste in the designated disposal area, the cashier requires the individual to fill out a form that provides a minimum of the individual’s identity, home address, phone number and tag number. The individual is then permitted to leave and return within 24 hours to settle the account. This procedure is necessary due to the need to weigh the vehicle loaded versus unloaded to determine the required fee. The County Engineer is granted discretional authority to close (see definition above) unpaid fee accounts under these circumstances with no current activity after efforts to locate the individuals are unsuccessful.

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V. RESERVE POLICIES: A formally adopted reserve policy is an important factor in maintaining the fiscal health of Highlands County. There are three primary types of reserves:

1. Operating Reserves 2. Capital Reserves 3. Debt Reserves

The degree of need for these reserves differs based upon the type of fund or operation involved. However, one policy statement for each type of reserve can be uniformly applied to most funds. Board approval is required to move funds from reserve accounts into expenditure line items. Operating Reserves It is the goal of the County to maintain adequate undesignated reserves in all County operating funds to provide a buffer against revenue fluctuations and unforeseen emergencies. Two types of undesignated operating reserves are appropriated in the budget:

1. Reserve for Contingency 2. Reserve for Cash Carry Forward

Capital Reserves Capital reserves are established primarily to set aside funds to provide for additional projects, or additions to existing budgeted projects, which may be deemed appropriate for funding after the annual budget is adopted. Debt Reserves Debt reserves are established to protect bondholders from payment defaults. Adequate debt reserves are essential in maintaining good bond ratings and enhancing the marketability of bonds. The amount of debt reserves is established by bond indenture in association with each bond issuance. These policy statements are intended to apply to various funds of the County. It is recognized that various federal, state and local laws and regulations and specific financial policies, may supersede these policies. VI. FUND BALANCE POLICIES: General Fund Undesignated Fund Balance

The County will maintain reservations of Fund Balance in the General Fund to provide stability and flexibility to respond to unexpected adversity. It is the County’s goal to maintain, at fiscal yearend, an unassigned fund balance of not less than three (3) months of the following year’s General Fund budgeted expenditures with the following exclusions from the budgeted expenditures; transfers to other funds, reserve for contingency, grant programs 100% depended on the grant, and capital. In any fiscal year where the County is unable to maintain a three (3) month unassigned fund balance, the County shall maintain a minimum unassigned fund

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balance of not less than two (2) months or 17% of General Fund operating expenditures for the next fiscal year. In the event of a declared emergency by the Board of County Commissioners, such as a hurricane disaster, the County may use the unassigned fund balance as needed to address the financial requirements to insure the safety, security and needs of Highlands County and its citizens. If the unassigned fund balance drops below the two (2) month minimum, the County shall develop a strategy to return to a level of adequate fund balance. The County’s basic goal is to limit the estimated budgeted expenditures for a fiscal year to the anticipated increases or decreases in the estimated budgeted revenues for that fiscal year, in order to limit the use of fund balance within the budget. The County’s position for maintaining a minimum unassigned fund balance of not less than 17% of next year’s General Fund operating expenditures is based on the following:

This amount provides adequate funding to cover approximately two (2) months of General Fund operating expenses.

This amount provides the liquidity necessary to accommodate the County’s uneven cash flow,

which is inherent in its periodic tax collection schedule.

This amount provides the liquidity to respond to contingent liabilities.

The Government Finance Officers Association recommends the minimum General Fund unassigned fund balance to be maintained should be no less than either two (2) months of regular operating revenues or expenditures.

The County will spend, unless prohibited from doing so, the most restricted dollars before less restricted in the following order:

a. Nonspendable (if funds becomes spendable) b. Restricted c. Committed d. Assigned e. Unassigned

Fund Balance – As defined by the Governmental Accounting, Auditing and Financial Reporting of the Government Finance Officers Association, fund balance is “The difference between assets and liabilities reported in a governmental fund.” Nonspendable Fund Balance – Amounts that are (a) not in a spendable form or (b) legally or contractually required to be maintained intact. “Not in spendable form” includes items that are not expected to be converted to cash (such as inventories and prepaid amounts) and items such as long-term amount of loans and notes receivable, as well a property acquired for resale. The corpus (or principal) of a permanent fund is an example of an amount that is legally or contractually required to be maintained intact. Restricted Fund Balance – Amounts that can be spent only for the specific purposes stipulated by (a) external resource providers such as creditors (by debt covenants), grantors, contributors, or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

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Committed Fund Balance – Amounts that can be used only for the specific purposes determined by the highest level of formal action (ordinance) of the Board of County Commissioners, the County’s highest level of decision making authority. Commitments may be changed or lifted only by the Board of County Commissioners taking the same formal action (ordinance) that imposed the constraint originally. Assigned Fund Balance – Amounts intended to be used by the County for specific purposes. This includes spendable fund balance amounts established by management of the County that are neither restricted nor committed. Unassigned Fund Balance – Unassigned fund balance is the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. Unassigned fund balance may also include negative balances for any governmental fund if expenditures exceed amounts restricted, committed, or assigned for those purposes. This revised policy and the fund balance designations will be effective as of October 1, 2014. This policy may be amended from time to time per the Board of County Commissioners. VII. DEBT POLICIES: A formal debt policy is an important factor to insure the most efficient methods of financing are utilized by the County resulting in the lowest total cost of borrowing. It is the County's policy to use competitive bidding, whenever possible, for all debt issued by the County. The complexity of the debt issuance process varies depending on the type of financing requiring the County to employ qualified consultants (bond counsel, financial advisor, independent accountants, etc.) to assist the County in obtaining the most cost effective financing. County staff and consultants should follow the following guidelines in structuring each debt issuance. Method of Financing The County will use a "pay as you go" policy unless internal funding is not sufficient to meet capital needs or a significant portion of the benefit of a project will be realized by future citizens. Financing Parameters (Guidelines) Projects will not be financed for greater than the useful life of the improvement. Whenever economically feasible, the County will use revenue, special assessment or other self-supporting bonds instead of general obligation bonds. The County will utilize the competitive method of sale unless one or more of the following conditions exists:

1. Unstable market conditions, which require flexibility in pricing or precise timing, which would not be expected through a competitive sale.

2. Concerns regarding credit quality and availability of credit enhancements. 3. Security for repayment is new, unproven or may be perceived as unreliable by the market.

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4. Innovative or unusual structuring techniques are required. 5. Changes or anticipated changes in laws or regulations would make the prompt sale of the

bonds desirable. Credit enhancement will be utilized when necessary to lower total borrowing costs. The County will competitively bid investment of escrow funds for advance refunding if it is expected that bids will result in lower costs and the required securities are available in the market. The County will include debt issuance plans in its long-term capital plan. VIII. CAPITAL FINANCIAL STRATEGIES: Ten Year Program

Prior to this year, Highlands County has utilized a Capital Improvement Program to determine what funding is available for projects that will help keep infrastructure needs in step with growth. In order to meet the changing requirements of the Florida Department of Community Affairs (DCA), the County has developed a 10 year Capital Financial Strategy (CFS) to address long term planning needs. The County utilizes the CFS to develop the 5 year Capital Improvement Element to report to DCA for approval of large and small scale Comprehensive Plan Amendments. The County will develop a ten-year CFS as part of each year's annual budget process, and will make all capital improvements in accordance with the adopted annual County budget. The County will identify the estimated costs and potential funding sources for each capital project before it is submitted to the Board of County Commissioners as a component of the ten-year program.

Operating Costs

The costs of operating and maintaining all proposed projects will be identified and incorporated into ten-year financial projections for operations.

Renewal and Replacement

The County shall develop and implement a program to identify, schedule and budget the renewal and replacement requirements of capital facilities. IX. ASSET POLICIES A. Definitions

1. Infrastructure Assets - Long-lived capital assets that are a part of a network of assets that can have service potential for an extended period and that are normally stationary.

2. Modified Approach - measures the cost of using infrastructure assets. The modified approach measures the cost of preservation of the asset at a predetermined condition level. Under the modified approach, future infrastructure costs incurred after GASB statement 34 implementation are capitalized only if they result in capital additions or improvements. All other infrastructure expenditures are reported as expense (in lieu of depreciation expense). Therefore, depreciation expense is not recorded on assets reported using the modified approach.

B. Reporting Method - Highlands County will use the modified approach method to report the

following asset systems. 1. Roads 2. Bridges

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C. Asset Management System - The modified approach is a shift in focus from replacement of fixed assets once fully depreciated, to one of maintaining those assets at a given condition level. In order to apply the modified approach under GASB 34, the County would need to adopt a policy statement setting the acceptable condition level at which relevant assets would be maintained and document over time that those assets were indeed maintained at that level. The asset management system must demonstrate either that maintenance spending is adequate to prevent infrastructure deterioration or that infrastructure condition is being maintained at or above explicitly stated minimum acceptable standards.

D. Condition Levels 1. Roads – The condition of a road segment is measured using the Road Evaluation Standards

Version 1 (RES) that is based on weighted averages of distress factors of the pavement surface. The RES system uses a measurement scale to evaluate the Pavement Condition Level (PCL) ranging from zero for a failed pavement to 100 for pavement in perfect condition. The PCL index is used to classify road segments in good condition (76-100), fair condition (51-75), poor condition (26-50), and needs reconstruction (25 or below). An overall minimum average condition level is then determined from the individual road segments and the total lane miles of roads. The County shall maintain the road system at an overall minimum average condition level not less than 45. Road segment condition shall be determined annually for all arterial roads and all of the local roads shall be inspected annually.

2. Bridges – The condition of the County’s bridges shall be determined using the inspection program that follows state mandates and regulations. The bridge sufficiency rating is a weighted average of an assessment of the ability of individual components to meet necessary performance requirements and uses a numerical condition scale ranging from 0 to 100. The County shall maintain an overall sufficiency rating for all County maintained bridges of not less than 60%.

E. Other Asset Classes

1. Right-of-Way - These are determined to be inexhaustible capital assets and will not be depreciated.

2. Sidewalks - These are determined to not meet the materiality test and will not be depreciated. F. Reporting Level Threshold - A fixed asset threshold is the minimum amount of an item's cost that

will cause that item to be recorded as an asset. Highlands County shall use the property accountability threshold limit as set by the State of Florida which is currently $1,000 for recording assets. For GASB 34 purposes, the capitalization thresholds for reporting (and depreciation) purposes shall be $5,000.00. Assets with a value between the property accountability threshold and $4,999.99 will be recorded in the fixed asset system for inventory purposes and not depreciated.

G. Asset Lives - Statement No. 34 does not recommend specific useful lives. An asset's present

condition, use, construction type, maintenance policy, and expected service/technological demands should be considered in determining its useful life. Useful lives should also reflect the government's own experience and plans. Sources of this information include professional or industry guidelines, information for comparable assets of other governments or other organizations, and internal property replacement policies (Florida Government Finance Officers Association, January/February 2003). Useful lives should be based upon the government's own experience and plans for the assets. Although comparison with other governments or other organizations may provide some guidance, property management practices, asset usage, and other variables (such as weather) may vary significantly between governments. (Item 47 in the GASB 34 Q&A). Highlands County will continue to base the useful life of an asset upon our own experience and plans for the assets.

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