september30,2003 forthefiscalyearended county...

COUNTY OF FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2003

COUNTY OF

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FLORIDA

COMPREHENSIVE

ANNUAL

FINANCIAL

REPORT

(CAFR)

FOR THE FISCAL YEAR ENDEDSEPTEMBER 30, 2003

COMPREHENSIVE ANNUAL FINANCIAL REPORT ESCAMBIA COUNTY, FLORIDA

YEAR ENDED SEPTEMBER 30, 2003

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION Title Page ................................................................................................................................i Letter of Transmittal ..................................................................................................................ii - vi Certificate of Achievement .........................................................................................................vii Organizational Charts ...............................................................................................................viii – ix List of Officials ..........................................................................................................................x

FINANCIAL SECTION REPORT OF INDEPENDENT AUDITORS .................................................................................1 – 2 MANAGEMENTS’ DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTARY INFORMATION) .......................................................................................................................3 - 18 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets............................................................................................................19 Statement of Activities ..............................................................................................................20 - 21 FUND FINANCIAL STATEMENTS Balance Sheet – Governmental Funds .......................................................................................22 Reconciliation of the Balance Sheet to the Statement of Net Assets ............................................23 Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................24 Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................25 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund and Transportation and Drainage Fund ..............................................26 - 27 Statement of Net Assets – Proprietary Funds .............................................................................28 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds ...................29 Statement of Cash Flows – Proprietary Funds ...........................................................................30 - 31 Statement of Fiduciary Net Assets – Fiduciary Funds .................................................................32

COMPREHENSIVE ANNUAL FINANCIAL REPORTESCAMBIA COUNTY, FLORIDA


TABLE OF CONTENTS

INTRODUCTORY SECTION

Title Page ................................................................................................................................ iLetter of Transmittal .................................................................................................................. ii - viCertificate of Achievement ......................................................................................................... viiOrganizational Charts ............................................................................................................... viii — ixList of Officials .......................................................................................................................... x

FINANCIAL SECTION

REPORT OF INDEPENDENT AUDITORS ................................................................................. 1 — 2

MANAGEMENTS’ DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTARYINFORMATION) ....................................................................................................................... 3 - 18

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements

Statement of Net Assets ............................................................................................................ 19

Statement of Activities .............................................................................................................. 2O - 21

FUND FINANCIAL STATEMENTS

Balance Sheet — Governmental Funds ....................................................................................... 22Reconciliation of the Balance Sheet to the Statement of Net Assets ............................................ 23Statement of Revenues, Expenditures, and Changes in Fund Balances ...................................... 24Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund

Balances of Governmental Funds to the Statement of Activities ................................................ 25Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget to

Actual — General Fund and Transportation and Drainage Fund .............................................. 26 - 27

Statement of Net Assets — Proprietary Funds ............................................................................. 28Statement of Revenues, Expenses, and Changes in Net Assets — Proprietary Funds ................... 29Statement of Cash Flows — Proprietary Funds ........................................................................... 3O - 31

Statement of Fiduciary Net Assets — Fiduciary Funds ................................................................. 32



TABLE OF CONTENTS (CONTINUED)

Page Component Units Financial Statements Statement of Net Assets .........................................................................................................33 Statement of Activities ............................................................................................................34 - 35 Notes to Financial Statements ..................................................................................................36 - 63 COMBINING FINANCIAL STATEMENTS Combining Balance Sheet - Non-major Governmental Funds .....................................................64 - 65 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds .............................................................................................66 - 67 Statements of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Comparison – All Other Governmental Funds .................................................68 - 80 Combining Statement of Net Assets – Non-major Proprietary Funds ...........................................81 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Non-major Proprietary Funds ..................................................................................................82 Combining Statement of Cash Flows – Non-major Proprietary Funds ..........................................83 - 84 Combining Statement of Fiduciary Net Assets – Agency Funds ..................................................85 Statement of Changes in Assets and Liabilities – Agency Funds .................................................86 - 87

STATISTICAL SECTION (UNAUDITED) General Government Revenue by Source – Last Ten Fiscal Years .............................................88 General Government Expenditures by Function – Last Ten Fiscal Years .....................................89 Schedule of Property Taxes Levied and Collected – Last Ten Fiscal Years ..................................90 Assessed and Actual Value of Taxable Property – Last Ten Fiscal Years ....................................91 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ...................92 Direct Debt of County-wide Organizations .................................................................................93 - 94 Special Assessment Collections – Last Ten Fiscal Years ...........................................................95 Revenue Bond Coverage – Civic Center Enterprise Bond Funds – Last Ten Fiscal Years ............96 Demographic Statistics – Last Ten Fiscal Years .........................................................................97 Property Value, Construction, and Bank Deposits – Last Ten Fiscal Years ..................................98 Principal Taxpayers .................................................................................................................99 Major Employers ......................................................................................................................100 Special Tax Collections Last Ten Fiscal Years ...........................................................................101 Schedule of Insurance ..............................................................................................................102 - 109




Page

Component Units Financial StatementsStatement of Net Assets ......................................................................................................... 33Statement of Activities ............................................................................................................ 34 - 35

Notes to Financial Statements .................................................................................................. 36 - 63

COMBINING FINANCIAL STATEMENTS

Combining Balance Sheet - Non-major Governmental Funds ..................................................... 64 - 65Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —

Non-major Governmental Funds ............................................................................................. 66 - 67Statements of Revenues, Expenditures, and Changes in Fund Balances —

Budget to Actual Comparison — All Other Governmental Funds ................................................. 68 - 80

Combining Statement of Net Assets — Non-major Proprietary Funds ........................................... 81Combining Statement of Revenues, Expenses, and Changes in Net Assets —

Non-major Proprietary Funds .................................................................................................. 82Combining Statement of Cash Flows — Non-major Proprietary Funds .......................................... 83 - 84

Combining Statement of Fiduciary Net Assets — Agency Funds .................................................. 85

Statement of Changes in Assets and Liabilities — Agency Funds ................................................. 86 - 87

STATISTICAL SECTION (UNAUDITED)

General Government Revenue by Source — Last Ten Fiscal Years ............................................. 88General Government Expenditures by Function — Last Ten Fiscal Years ..................................... 89Schedule of Property Taxes Levied and Collected — Last Ten Fiscal Years .................................. 90Assessed and Actual Value of Taxable Property — Last Ten Fiscal Years .................................... 91Property Tax Rates — Direct and Overlapping Governments — Last Ten Fiscal Years ................... 92Direct Debt of County-wide Organizations ................................................................................. 93 - 94Special Assessment Collections — Last Ten Fiscal Years ........................................................... 95Revenue Bond Coverage — Civic Center Enterprise Bond Funds — Last Ten Fiscal Years ............ 96Demographic Statistics — Last Ten Fiscal Years ......................................................................... 97Property Value, Construction, and Bank Deposits — Last Ten Fiscal Years .................................. 98Principal Taxpayers ................................................................................................................. 99Major Employers ...................................................................................................................... 100Special Tax Collections Last Ten Fiscal Years ........................................................................... 101Schedule of Insurance .............................................................................................................. 102 - 109




Page

CONTINUING DISCLOSURE SECTION (UNAUDITED) PLEDGED REVENUES Summarized Schedule .............................................................................................................110 Bob Sikes Toll Bridge Revenues ...............................................................................................111 Constitutional Gas Tax .............................................................................................................112 Half-Cent Sales Tax .................................................................................................................113 Tourist Development Tax .........................................................................................................114 Lease Revenues ......................................................................................................................115 OUTSTANDING BONDS Road Improvement Revenue Bonds, Series 1993B ....................................................................116 - 117 Sales Tax Revenue Refunding Bonds, Series 2002 ...................................................................118 - 119 Tourist Development Revenue Refunding Bonds, Series 2002 ...................................................120 - 121 Capital Improvement Revenue Bonds, Series 2002 ....................................................................122 - 123 OTHER COUNTY DEBT Summarized Statement ............................................................................................................124 Sun Trust Bank Line of Credit ...................................................................................................125 City of Gulf Breeze Capital Improvement Bond, Series 1997 .......................................................126 City of Gulf Breeze Capital Improvement Bond, Series 1998 .......................................................127 City of Gulf Breeze Capital Improvement Bond, Series 1999B ....................................................128 City of Gulf Breeze Capital Improvement Bond, Series 1999C ....................................................129 State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ...................................................130 REFUNDED BONDS Schedule of Outstanding Refunded Debt ..................................................................................131 Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 .................................132 Solid Waste Disposal System Revenue Bonds, Series 1978 .......................................................133 Capital Improvement Refunding and Revenue Bonds, Series 1980-1 ..........................................134 Special Obligation Bonds, Series 1980A ....................................................................................135 Capital Improvement Refunding Revenue Bonds, Series 1983 ...................................................136 Sales Tax Revenue Bonds, Series 1989A .................................................................................137 Tourist Development Tax Revenue Bonds, Series 1992 .............................................................138 Road Improvement Revenue Bonds, Series 1993A ....................................................................139 Sales Tax Revenue Refunding Bonds, Series 1993 ....................................................................140 ECONOMIC INDICATORS Per Capita Income – Comparison .............................................................................................141 Employment by Industry ...........................................................................................................142 Unemployment Rate ................................................................................................................143 Florida Price Level Index ..........................................................................................................144 Taxable Retail Sales ................................................................................................................145 Visitors by Air ..........................................................................................................................146 Comparison of Lodging and Restaurants ...................................................................................147 Age of Escambia County Population .........................................................................................148




CONTINUING DISCLOSURE SECTION (UNAUDITED)

PLEDGED REVENUESSummarized Schedule ............................................................................................................. 110Bob Sikes Toll Bridge Revenues ............................................................................................... 111Constitutional Gas Tax ............................................................................................................. 112Half-Cent Sales Tax ................................................................................................................. 113Tourist Development Tax ......................................................................................................... 114Lease Revenues ...................................................................................................................... 115

OUTSTANDING BONDSRoad Improvement Revenue Bonds, Series 19938 .................................................................... 116 - 117Sales Tax Revenue Refunding Bonds, Series 2002 ................................................................... 118 - 119Tourist Development Revenue Refunding Bonds, Series 2002 ................................................... 120 - 121Capital Improvement Revenue Bonds, Series 2002 .................................................................... 122 - 123

OTHER COUNTY DEBTSummarized Statement ............................................................................................................ 124Sun Trust Bank Line of Credit ................................................................................................... 125City of Gulf Breeze Capital Improvement Bond, Series 1997 ....................................................... 126City of Gulf Breeze Capital Improvement Bond, Series 1998 ....................................................... 127City of Gulf Breeze Capital Improvement Bond, Series 19998 .................................................... 128City of Gulf Breeze Capital Improvement Bond, Series 1999C .................................................... 129State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ................................................... 130

REFUNDED BONDSSchedule of Outstanding Refunded Debt .................................................................................. 131Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 ................................. 132Solid Waste Disposal System Revenue Bonds, Series 1978 ....................................................... 133Capital Improvement Refunding and Revenue Bonds, Series 1980—1 .......................................... 134Special Obligation Bonds, Series 1980A .................................................................................... 135Capital Improvement Refunding Revenue Bonds, Series 1983 ................................................... 136Sales Tax Revenue Bonds, Series 1989A ................................................................................. 137Tourist Development Tax Revenue Bonds, Series 1992 ............................................................. 138Road Improvement Revenue Bonds, Series 1993A .................................................................... 139Sales Tax Revenue Refunding Bonds, Series 1993 .................................................................... 140

ECONOMIC INDICATORSPer Capita Income — Comparison ............................................................................................. 141Employment by Industry ........................................................................................................... 142Unemployment Rate ................................................................................................................ 143Florida Price Level Index .......................................................................................................... 144Taxable Retail Sales ................................................................................................................ 145Visitors by Air .......................................................................................................................... 146Comparison of Lodging and Restaurants ................................................................................... 147Age of Escambia County Population ......................................................................................... 148


This section contains the following subsections:

TITLE PAGE

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT FOR

EXCELLENCE IN FINANCIAL REPORTING

ESCAMBIA COUNTY ORGANIZATIONAL CHARTS

LIST OF OFFICIALS



TITLE PAGE

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT FOREXCELLENCE IN FINANCIAL REPORTING

ESCAMBIA COUNTY ORGANIZATIONAL CHARTS

LIST OF OFFICIALS

i

COMPREHENSIVE ANNUAL FINANCIAL REPORT

ESCAMBIA COUNTY, FLORIDA

PREPARED BY

ERNIE LEE MAGAHA CLERK OF THE CIRCUIT COURT

FINANCE DEPARTMENT

Wanda M. McBrearty, CPA, CGFO Deputy Finance Director


COMPREHENSIVE ANNUAL FINANCIAL REPORT


PREPARED BY

ERNIE LEE MAGAHACLERK OF THE CIRCUIT COURT

FINANCE DEPARTMENT

Wanda M. McBrearty, CPA, CGFODeputy Finance Director


ERNIE LEE MAG-AHA BRANCH OFFICES

CLERK OF THE CiRCUiT COURT ARCHEVES AND RECORDSJUVENILE DIViSiON

ARCHIVES AND RECORDS CENTURY

CHILD suppom COUN I Y OF ESCAMBIAClRCUIT CEVIL

CiRCUlTCRtMINAL. OFFICE OF THECOUNTY CIVi L

COUNWCH‘M‘NA“ CLERK OF THE CIRCUIT COURThomes-rm RELATIONS CLERK To THE. some or:FAMILY LAW COUNTY COMMISSiONERS

JURY ASSEMBLYJUVENELE ossrcw. esconosMARRIAGE counw TREASURY

MENTAL HEALTH AUDETORMts

OPERATtONAL SERVICESPROBATETRAFFIC

January 31. 2004

"to the Honorable Members of the Board of CountyCommissioners and Citizens of Escambia County, Fiorida

We are pleased to present the Comprehensive Annuai Financlai Report (CAFR) of EsoambiaCounty, Florida, for the fiscal year ended September 30. 2003, The report has been prepared inaccordance with generally accepted accounting principles by the highty professional anddedicated staff of the Finance Department of the Clerk of the Circuit Court, The Clerk of theCircuit Court is mandated by the Constitution of the State of Fiorida to serve as the ChiefFinanclai Officer of the County, and is reaponsibie for both the accuracy of the presented data,and the compieteness and fairness of the presentation, including all disclosures. We believe thedata as presented is accurate in all material aspects; that it is presented in a manner designed tofairly set forth the financial position and resuits of operations of the County as measured by thefinancial activity of its various funds; and that ail disclosures necessary to enabie the reader togain a comprehensive understanding of the County’s financial activity have been included

This report consists of management's representations concerning the finances of EscambiaCounty Consequently, to provide a reasonabie basis for making these representations.management of Escambia County is responsibie for estabiishing and maintaining an internalcontrol structure designed to provide reasonabte, but not absoiute, assurance that the assets ofthe County are protected from ioss, theft or misuse; reliabiiity of financiai records for preparingfinancial statements; and maintaining accountabitity for assets. The concept of reasonableassurance recognizes that the cost of a control should not exceed the benefits likely to bederived, and the evaluation of costs and benefits requires estimates and iudgments bymanagement, We believe that the County's internat accounting controls adequately safeguardassets and provide reasonabie assurance of proper recording of financiai transactions

‘ _ The Comprehensive Annual Financiai Report is required by Florida Statute_ / 11,45 and is required to be audited by an independent firm of certified public

,- accountantsi The Board of County Commissioners has seiected O'SuttivanCreel, LLP to perform this audit, The goal of the independent audit is to

\ provide reasonable assurance that the financiai statements of EscambtaCounty are free of material misstatement, The independent audit involved

examining, on a test basis, evidence supporting the amounts and disciosures inthe financial statements; assessing the accounting principies used and significant estimatesmade by management; and evaluating the overaii financial statement presentation. Theindependent auditor concluded, based upon the audit, that there was a reasonable basis for

2.23 PALAFOX PLACE. ° PENfiACOLA, FLORIDA 32502‘5845

(850) 595"4845 ° FAX (850) 595-4827

iii

rendering an unqualified opinion that Escambia County’s financial statements for the fiscal year ended September 30, 2003, are fairly presented in conformity with generally accepted accounting principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report. In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal 1996 Single Audit Act Amendments and the related OMB Circular A-133. The standards governing single audit engagements require the independent auditor to report on the government’s internal controls and compliance with legal requirements with special emphasis on the administration of federal awards. These reports are available in a separately issued report, available on file with the Clerk to the Board. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. Escambia County’s MD&A can be found immediately following the report of the independent auditors. County Organization

Escambia County, located in the northwestern part of the state, was established July 21, 1821 as a non-charter government when the Provisional Governor Andrew Jackson signed an ordinance making the County one of the first two counties in Florida, the other being St. John's County. Escambia County encompasses approximately 661 square miles, or 420,480 acres, with an additional 64,000 acres of water area and serves a population of 297,280. Although northwest Florida has not

experienced the rapid growth that southern and central Florida has experienced, the area has grown significantly during the past two decades. There are two municipalities within the County: Century and Pensacola, the County seat. Pursuant to Florida Statutes, the legislative and policy-making powers are vested with the five-member Board of County Commissioners who is elected by district for four-year terms. The Chairman presides over the Board and is elected by the members annually. Separate powers for operation of specific functions of County government are vested with the five Constitutional Officers--the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The Board of County Commissioners’ responsibilities include: passing ordinances and resolutions, adopting the budget and levying a property tax on real and personal property, appointing boards and committees and hiring the County Administrator and County Attorney. The Clerk of the Circuit Court serves as the Chief Financial Officer for the County acting as accountant, auditor, recorder, the custodian of all county funds and ex-officio Clerk to the Board. The County Administrator is the chief administrative official of the County responsible for carrying out the policies of the Board and overseeing the day -to-day operations of the County. The County Attorney represents the County Commission and all other departments, divisions, boards, and offices in legal matters affecting the County. Escambia County provides a full range of services, including the construction and maintenance of highways, streets, and other infrastructure, sheriff and fire protection, health and social services, emergency medical services, landfill operations, mass transportation services and cultural and recreational programs. Certain employee services are provided through a legally separate Civil Service Board which is financially dependent on Escambia County but does not provide services exclusively for Escambia County and therefore is reported separately within Escambia County’s financial statements. The Santa Rosa Island Authority (SRIA) provides management services for Escambia County’s Beach Toll Facility and serves as the County’s leasing agent for property on Santa Rosa Island owned by the County. The County approves the SRIA’s annual budget and

rendering an unqualified opinion that Escambia County’s financial statements for the fiscal yearended September 30, 2003, are fairly presented in conformity with generally accepted accountingprinciples (GAAP). The independent auditor’s report is presented as the first component of thefinancial section of this report.

In addition to meeting the requirements set forth in state statutes, the audit was also designed tomeet the requirements of the Federal 1996 Single Audit Act Amendments and the related OMBCircular A133. The standards governing single audit engagements require the independentauditor to report on the government’s internal controls and compliance with legal requirementswith special emphasis on the administration of federal awards. These reports are available in aseparately issued report, available on file with the Clerk to the Board.

GAAP requires that management provide a narrative introduction, overview, and analysis toaccompany the basic financial statements in the form of Management’s Discussion and Analysis(MD&A). This letter of transmittal is designed to complement MD&A and should be read inconjunction with it. Escambia County’s MD&A can be found immediately following the report ofthe independent auditors.

County Organization

Escambia County, located in the northwestern part of the state, wasestablished July 21, 1821 as a non-charter government when theProvisional Governor Andrew Jackson signed an ordinance making theCounty one of the first two counties in Florida, the other being St. John‘sCounty. Escambia County encompasses approximately 661 squaremiles, or 420,480 acres, with an additional 64,000 acres of water areaand serves a population of 297,280. Although northwest Florida has not

experienced the rapid growth that southern and central Florida has experienced, the area hasgrown significantly during the past two decades. There are two municipalities within the County:Century and Pensacola, the County seat.

Pursuant to Florida Statutes, the legislative and policy-making powers are vested with the five-member Board of County Commissioners who is elected by district for four-year terms. TheChairman presides over the Board and is elected by the members annually. Separate powers foroperation of specific functions of County government are vested with the five ConstitutionalOfficers--the Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections andTax Collector. The Board of County Commissioners’ responsibilities include: passing ordinancesand resolutions, adopting the budget and levying a property tax on real and personal property,appointing boards and committees and hiring the County Administrator and County Attorney. TheClerk of the Circuit Court serves as the Chief Financial Officer for the County acting asaccountant, auditor, recorder, the custodian of all county funds and ex-officio Clerk to the Board.The County Administrator is the chief administrative official of the County responsible for carryingout the policies of the Board and overseeing the day-to-day operations of the County. TheCounty Attorney represents the County Commission and all other departments, divisions, boards,and offices in legal matters affecting the County.

Escambia County provides a full range of services, including the construction and maintenance ofhighways, streets, and other infrastructure, sheriff and fire protection, health and social services,emergency medical services, landfill operations, mass transportation services and cultural andrecreational programs. Certain employee services are provided through a legally separate CivilService Board which is financially dependent on Escambia County but does not provide servicesexclusively for Escambia County and therefore is reported separately within Escambia County’sfinancial statements. The Santa Rosa Island Authority (SRIA) provides management services forEscambia County’s Beach Toll Facility and serves as the County’s leasing agent for property onSanta Rosa Island owned by the County. The County approves the SRIA’s annual budget and

iv

has veto power over decisions of the Authority. It too is reported separately within Escambia County’s financial statements. The Housing Finance Authority (HFA) is also presented separately within the County’s financial statements. Although the County appoints the members of the HFA’s board and must approve it’s budget, the HFA and the County are not substantially the same and the HFA does not provide services almost exclusively for the County. The Law Library is fiscally dependent on Escambia County therefore it is discretely presented in this report. For additional information on Escambia County’s Component Units, please refer to the Notes. Escambia County is committed to providing high levels of service to its residents, at the lowest possible cost, in order to minimize taxpayer burden. As required by Florida Statutes, Chapter 129, on an annual basis, the County must prepare and adopt a balanced budget. The annual budget serves as the foundation for Escambia County’s financial planning and control. The County adopts formal budgets for all funds prior to October 1 of each fiscal year. During the year the County Administrator approves intra-departmental budget amendments that do not change the department total budget or change the personal services budget. The Board must approve budget amendments affecting personal services or reserve for contingencies. Supplemental budgets for revenues not anticipated must also receive Board approval. Encumbrance accounting is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Project Funds. Although appropriations lapse at year end, outstanding encumbrances are generally re-appropriated as a part of the following year's budget. The County's Law Library does not use encumbrance accounting for its operations. The elected officials, funded as a part of the County's annual budget, maintain their own budgetary systems consistent with the requirements of state law. As demonstrated by the statements and schedules included in the financial section of this report, Escambia County continues to meet its responsibility for sound financial management. The County also prepares a Capital Improvements Program (CIP) annually. The CIP provides a planned and programmed approach to utilizing the County's financial resources in the most responsive and efficient manner to meet its service and facility needs. It serves as a five year "blue print" for the future of the community's capital projects. The first year of this "blueprint" serves as the annual capital budget for the County. Budget-to-actual comparisons are presented in this report for each governmental fund for which an annual budget has been adopted. The general fund comparison is included in the basic financial statement section. All other governmental funds’ budget-to-actual comparisons are included in the combining and individual statements and schedules section of this report. Local Economy The future is bright for Escambia County and its residents. Efforts toward creating a positive business environment are paying off. The strong vitality of the area is the result of collaborative efforts taking place among local governments, other public organizations and the private sector. The overall financial condition of the County continues to improve. Although the property tax millage remained at 8.756, an increase in assessed property values allowed the County to realize an increase in ad valorem revenue from the previous fiscal year. The County continues to update capital improvement plans to adequately forecast long-term needs. A firm commitment to planning, together with enhanced economic development efforts and strong civic leadership should result in sufficient revenue growth to sustain the quality of life enjoyed by our residents and propel the area’s economy to new heights. The County population is projected to be 317,262 in the year 2010. Nearly 64% of the population is in the prime working age group of 18-64. Per capita income in the county continues to rise, now over $26,000 per year.

has veto power over decisions of the Authority. It too is reported separately within EscambiaCounty’s financial statements. The Housing Finance Authority (HFA) is also presentedseparately within the County’s financial statements. Although the County appoints the membersof the HFA’s board and must approve it’s budget, the HFA and the County are not substantiallythe same and the HFA does not provide services almost exclusively for the County. The LawLibrary is fiscally dependent on Escambia County therefore it is discretely presented in this report.For additional information on Escambia County’s Component Units, please refer to the Notes.

Escambia County is committed to providing high levels of service to its residents, at the lowestpossible cost, in order to minimize taxpayer burden. As required by Florida Statutes, Chapter129, on an annual basis, the County must prepare and adopt a balanced budget. The annualbudget serves as the foundation for Escambia County’s financial planning and control.

The County adopts formal budgets for all funds prior to October 1 of each fiscal year. During theyear the County Administrator approves intra-departmental budget amendments that do notchange the department total budget or change the personal services budget. The Board mustapprove budget amendments affecting personal services or reserve for contingencies.Supplemental budgets for revenues not anticipated must also receive Board approval.Encumbrance accounting is employed as an extension of formal budgetary integration in theGeneral Fund, Special Revenue Funds and Capital Project Funds. Although appropriations lapseat year end, outstanding encumbrances are generally re-appropriated as a part of the followingyear‘s budget. The County's Law Library does not use encumbrance accounting for itsoperations. The elected officials, funded as a part of the County's annual budget, maintain theirown budgetary systems consistent with the requirements of state law. As demonstrated by thestatements and schedules included in the financial section of this report, Escambia Countycontinues to meet its responsibility for sound financial management.

The County also prepares a Capital Improvements Program (CIP) annually. The CIP provides aplanned and programmed approach to utilizing the County's financial resources in the mostresponsive and efficient manner to meet its service and facility needs. It serves as a five year"blue print" for the future of the community's capital projects. The first year of this "blueprint"serves as the annual capital budget for the County.

Budget-to-actual comparisons are presented in this report for each governmental fund for whichan annual budget has been adopted. The general fund comparison is included in the basicfinancial statement section. All other governmental funds’ budget-to-actual comparisons areincluded in the combining and individual statements and schedules section of this report.

Local Economy

The future is bright for Escambia County and its residents. Efforts toward creating a positivebusiness environment are paying off. The strong vitality of the area is the result of collaborativeefforts taking place among local governments, other public organizations and the private sector.

The overall financial condition of the County continues to improve. Although the property taxmillage remained at 8.756, an increase in assessed property values allowed the County to realizean increase in ad valorem revenue from the previous fiscal year. The County continues to updatecapital improvement plans to adequately forecast long-term needs. A firm commitment toplanning, together with enhanced economic development efforts and strong civic leadershipshould result in sufficient revenue growth to sustain the quality of life enjoyed by our residentsand propel the area’s economy to new heights.

The County population is projected to be 317,262 in the year 2010. Nearly 64% of the populationis in the prime working age group of 18-64. Per capita income in the county continues to rise,now over $26,000 per year.

v

The building industry remains strong in Escambia County. This past year, 2,210 residential building permits were issued with a value over $280 million. Escambia County is somewhat insulated against a volatile marketplace through factors such as low unemployment, recent commercial expansion, tourism, and the high percentage of military personnel and retirees. Goals and Objectives Management’s goals and objectives are to continue to provide infrastructure for future growth and sound fiscal management of County resources while maintaining the quality of life we enjoy here in Escambia County. Some examples of these goals and objectives are as follows: v Increased efforts designed to encourage business development in the area v Increased efforts designed to promote tourism to the area v Road paving and improved drainage throughout the County v Continued upgrade of Public Safety vehicles and equipment such as new fire pumper

trucks, to provide even more efficient service to the community Cash Management

At the end of fiscal year 2003 the County's investment portfolio consisted primarily of federal instrumentalities discount notes, certificates of deposit, securities held by the Florida State Board of Administration Local Government Pool, a bank repurchase agreement,

and interest earning bank deposits. The County's investment policy sets forth all criteria for approved investments; limits the percent of the total portfolio that can be in one category of investment; limits the percent of total portfolio that can be placed with only one institution; and the internal control procedures such as "delivery versus payment" and "custodial arrangements". This policy also requires monthly reporting of portfolio activity to the Board of County Commissioners by the Clerk of the Circuit Court and it provides for oversight by an investment advisory committee comprising volunteer citizens, a County Commissioner, the County Administrator, and the Clerk of the Circuit Court. The investments made by the Clerk of Court’s Finance Department earned an average yield of 1.59% and generated over $3 million in investment earnings for the fiscal year ending September 30, 2003. Risk Management Escambia County has established a risk management program to retain some risk of certain claims against the Board of County Commissioners, the Constitutional Officers, Civil Service Board, and the Santa Rosa Island Authority, including workers compensation and casualty and property. The County is protected by sovereign immunity for all liability claims in excess of $100,000. Umbrella coverage is purchased for property claims in excess of $100,000 and worker's compensation claims in excess of $350,000. Additional information on Escambia County’s risk management activity can be found in the notes to the financial statements.

The building industry remains strong in Escambia County. This past year, 2,210 residentialbuilding permits were issued with a value over $280 million.

Escambia County is somewhat insulated against a volatile marketplace through factors such aslow unemployment, recent commercial expansion, tourism, and the high percentage of militarypersonnel and retirees.

Goals and Objectives

Management’s goals and objectives are to continue to provide infrastructure for future growth andsound fiscal management of County resources while maintaining the quality of life we enjoy herein Escambia County. Some examples of these goals and objectives are as follows:

0:. Increased efforts designed to encourage business development in the area

0:. Increased efforts designed to promote tourism to the area

0:. Road paving and improved drainage throughout the County

0:. Continued upgrade of Public Safety vehicles and equipment such as new fire pumpertrucks, to provide even more efficient service to the community

Cash Management

imdfi At the end of fiscal year 2003 the County's investment portfolio.. consisted primarily of federal instrumentalities discount notes,

._ . , {$1 _q certificates of deposit, securities held by the Florida State Board of3...; .nm-....m.-L‘IJ Administration Local Government Pool, a bank repurchase agreement,

and interest earning bank deposits. The County's investment policy sets forth all criteria forapproved investments; limits the percent of the total portfolio that can be in one category ofinvestment; limits the percent of total portfolio that can be placed with only one institution; and theinternal control procedures such as "delivery versus payment" and "custodial arrangements".This policy also requires monthly reporting of portfolio activity to the Board of CountyCommissioners by the Clerk of the Circuit Court and it provides for oversight by an investmentadvisory committee comprising volunteer citizens, a County Commissioner, the CountyAdministrator, and the Clerk of the Circuit Court. The investments made by the Clerk of Court’sFinance Department earned an average yield of 1.59% and generated over $3 million ininvestment earnings for the fiscal year ending September 30, 2003.

Risk Management

Escambia County has established a risk management program to retainsome risk of certain claims against the Board of County Commissioners,the Constitutional Officers, Civil Service Board, and the Santa Rosa IslandAuthority, including workers compensation and casualty and property. TheCounty is protected by sovereign immunity for all liability claims in excessof $100,000. Umbrella coverage is purchased for property claims inexcess of $100,000 and worker's compensation claims in excess of $350,000. Additionalinformation on Escambia County’s risk management activity can be found in the notes to thefinancial statements.

vi

Pension Benefits Escambia County provides pension benefits for its employees through a multiple employer, cost sharing defined benefit pension plan managed by the Florida State Board of Administration. Participating employer contributions are based on statewide rates developed through actuarial analysis. Escambia County has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payment based on the actuarial estimates. Additional information on Escambia County’s pension arrangements can be found in the notes to the financial statements. Awards and Acknowledgments

The Government Finance Officers Association (GFOA) awarded Escambia County the Certificate of Achievement for Excellence in Financial Reporting for 21 of the past 22 years (did not apply in 1994). In order to be awarded a Certificate of Achievement, Escambia County must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report meets the Certificate of Achievement Program's standards and it will be submitted to the GFOA for consideration for the award. In addition, Escambia County also received the GFOA’s Distinguished Budget Presentation Award for its Annual Budget for fiscal year ended 2002. This is the eighth consecutive year that Escambia County has received this award. In order to qualify for this award, Escambia County’s budget document was judged to be proficient in several categories, including a policy document, a financial plan, an operations guide, and a communications device. This report is a product of the hard work and dedication of the Finance Department of the Clerk of the Circuit Court of Escambia County as Auditor and Accountant of the Board of County Commissioners. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. We appreciate the support and cooperation of the Board of County Commissioners and the departments that serve under them and thank the auditing firm of O'Sullivan Creel, LLP for their guidance. Respectfully submitted, Ernie Lee Magaha Wanda M. McBrearty Ernie Lee Magaha Wanda M. McBrearty, CPA, CGFO Clerk of the Circuit Court Deputy Finance Director

Pension Benefits

Escambia County provides pension benefits for its employees through a multiple employer, costsharing defined benefit pension plan managed by the Florida State Board of Administration.Participating employer contributions are based on statewide rates developed through actuarialanalysis. Escambia County has no obligation in connection with employee benefits offeredthrough this plan beyond its annual contractual payment based on the actuarial estimates.

Additional information on Escambia County’s pension arrangements can be found in the notes tothe financial statements.

Awards and Acknowledgments

The Government Finance Officers Association (GFOA) awardedEscambia County the Certificate of Achievement for Excellence inFinancial Reporting for 21 of the past 22 years (did not apply in 1994). Inorder to be awarded a Certificate of Achievement, Escambia Countymust publish an easily readable and efficiently organized comprehensiveannual financial report. This report must satisfy both generally acceptedaccounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our currentcomprehensive annual financial report meets the Certificate of Achievement Program's standardsand it will be submitted to the GFOA for consideration for the award.

In addition, Escambia County also received the GFOA’s Distinguished Budget PresentationAward for its Annual Budget for fiscal year ended 2002. This is the eighth consecutive year thatEscambia County has received this award. In order to qualify for this award, Escambia County’sbudget document was judged to be proficient in several categories, including a policy document,a financial plan, an operations guide, and a communications device.

This report is a product of the hard work and dedication of the Finance Department of the Clerk ofthe Circuit Court of Escambia County as Auditor and Accountant of the Board of CountyCommissioners. We would like to express our appreciation to all members of the departmentwho assisted and contributed to the preparation of this report. We appreciate the support andcooperation of the Board of County Commissioners and the departments that serve under themand thank the auditing firm of O'Sullivan Creel, LLP for their guidance.

Respectfully submitted,

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Ernie Lee Magaha Wanda M. McBrearty, CPA, CGFOClerk of the Circuit Court Deputy Finance Director

vi

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COUNTY COMMISSIONERS

Clifford W. Barnhart, District 1 William “Bill” Dickson, District 2 Marie Young, District 3 – Chair

Thomas G. “Tom” Banjanin, District 4 - Vice Chair Janice E. Gilley, District 5

OTHER ELECTED OFFICIALS

Ernie Lee Magaha, Clerk of the Circuit Court Ron McNesby, Sheriff

Janet Holley, Tax Collector Chris Jones, Property Appraiser

Bonnie Jones, Supervisor of Elections

OTHER OFFICIALS

George Touart, County Administrator Janet Lander, County Attorney

COUNTY COMMISSIONERS

Clifford W. Barnhart, District 1William “Bill” Dickson, District 2Marie Young, District 3 — Chair

Thomas G. “Tom” Banjanin, District 4 - Vice ChairJanice E. Gilley, District 5

OTHER ELECTED OFFICIALS

Ernie Lee Magaha, Clerk of the Circuit CourtRon McNesby, Sheriff

Janet Holley, Tax CollectorChris Jones, Property Appraiser

Bonnie Jones, Supervisor of Elections

OTHER OFFICIALS

George Touart, County AdministratorJanet Lander, County Attorney

FINANCIAL SECTION This section contains the following subsections: REPORT OF INDEPENDENT AUDITORS

MANAGEMENT’S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS

FINANCIAL SECTION


REPORT OF INDEPENDENT AUDITORS

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

FUND FINANCIAL STATEMENTS

23%% O’SULLIVAN CREEL,LLP§ Certified Public Accountanls 81 Consultants

In: South iinylen St ' Smile 200 t Pensacola FL 323302

REPORT OF iNDEPENDENT AUDETORS

Honorable Board of County ConnnissionersEscambia County, Fiorida

We have audited the accompanying financial statements of the governmental activities, thebusiness~type activities, the aggregate discretely presented component units, each major fund,and the aggregate remaining fund information of Escainbia County, Florida, as of and for theyear ended September 30, 2003, which collectively comprise the County’s basic financialstatements as listed in the table of contents, These financial statements are the responsibility ofEscambia County, Fiorida’s management, Our responsibility is to express an opinion on thesefinancial statements based on our audit. We did not audit the financial statements of thefollowing component units, as of and for the year ended September 30, 2003, which statementsreflect total assets and total revenues as diSplayed below:

Total Total Type ofAssets Revenues Component Unit

Escambia Connty HousingFinance Authority 3; 6,875,274 $ 574,626 Business Type Activities—Discrete

Santa Rosa Island Authority $38,372,} ll $ 45,186,435 Business type Activitiesiscrtete

These financial statements were audited by other auditors whose reports have been furnished tous, and our opinion, insofar as it relates to the amounts included for the component units in thebusiness—type activities component unit column, is based on the reports of the other auditors,

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Cornptroiler General of the United States, Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement, An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements, An audit alsoincludes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation We believe thatour audit and the reports of other auditors provide a reasonable basis for our opinion,

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In our opinion, based on our audit and the reports of other auditors, the financial statementsreferred to above, present fairly, in all material respects, the respective financial position of thegovernmental activities, the business—type activities, the aggregate discretely presentedcomponent units, each major fund, and the aggregate remaining fund information of EscambiaCounty, Florida, as of September .30, 2003, and the respective changes in financial position andcash flows, where applicable, thereof and the respective budgetary comparison for the generaland transportation and drainage funds for the year then ended in conformity with accountingprinciples generally accepted in the United States of America,

In accordance with Government Auditing Standards, we have also issued our report datedJanuary 30, 2004 on our consideration of Escambia County, Florida’s internal control overfinancial reporting and our tests of its compliance with certain provisions of laws, regulations,contracts and grants, That report is an integral part of an audit performed in accordance withGovernment Auditing Standards and should be read in conjunction with this report inconsidering the results of our audit.

The management’s discussion and anaiysis on pages 3 through i8 is not a required part of thebasic financial statements but is supplementary information required by the GovernmentalAccounting Standards Board, We have applied certain limited procedures, which consistedprincipally of inquiries of management regarding the methods of measurement and presentationof the required supplementary information. However, we did not audit the information andexpress no opinion on it,

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise Escambia County, Florida’s basic financial statements, The accompanyinginformation identified in the table of contents as combining and individual fund financialstatements are presented for purposes of additional anaiysis and are not a required part of thebasic financial statements. Such information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and, in our opinion, is fairly stated in allmaterial respects in relation to the basic financial statements taken as a whole.

The accompanying Introductory Section, Statistical Section, and Continuing Disclosure Sectionare presented for purposes of additional analysis and are not a required part of the basic financialstatements This information has not been subjected to the auditing procedures applied in theaudit of the basic financial statements and, accordingly, we express no opinion on them.

Maw 6W, up

January 30, 2004

3

Management’s Discussion and Analysis As fiscal managers of Escambia County, we offer readers of Escambia County’s financial statements this narrative overview and analysis of the financial activities of Escambia County for the fiscal year ended September 30, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found within this report.

Financial Highlights v The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by

$382,096,867 for fiscal 2003. Of this amount, $48,207,804 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. Unrestricted net assets increased $5,121,073 over the previous year.

v The County’s total net assets this fiscal year decreased $16,738,409 from the previous year with

a decrease of $34,306,652 resulting from governmental activities and an increase of $17,568,243 resulting from business-type activities. This decrease in governmental activities is partly due to the $32,000,000 of bonds issued that was transferred to the Santa Rosa Island Authority as part of their capital improvement plan on the Island. The increase in net assets in the business-type activities is mainly due to the reduction in the required landfill closure liability of $10,367,898 based upon reduced cost estimates from an independent engineering firm.

v At September 30, Escambia County’s governmental funds reported combined ending fund

balances of $126,413,623 an increase of $41,015,908 in comparison with the prior year. Of this amount, $92,433,829 remains in the various fund types of the County as unreserved.

v The General Fund reported an unreserved fund balance of $17,091,937; an increase from last

fiscal year of $1,950,585. v Escambia County’s total bonded debt, leases and loans increased $67,571,683 from the previous

fiscal year. The key factor in this increase was the issuance of three new bond issues. These issues refunded some of the old debt as well as provided new monies for additional capital projects.

v Governmental Funds’ revenues increased $4,748,594 or 2.19% over the prior fiscal year. v Governmental Funds’ expenditures increased $44,980,084 or 20.75% over the prior fiscal year.

The key factors in this increase were the inception of the new Public Safety Building Project, and the County Courthouse Complex project. Also, included in the increase is the transfer of $32,000,000 of new bond money to the Santa Rosa Island Authority for the beach nourishment project and the road improvements project on the Island.

v New closure estimates of the County’s Perdido Landfill approved by State Authorities resulted in

a decrease to the cash closure reserve of $535,527 for fiscal year 2003. The new estimates also contributed to a $10,367,898 increase in the Solid Waste Fund’s net assets. The County now holds $8,789,328 for closure purposes with the current estimated remaining landfill life of 7 years.

v Interest rates continued to fall over the last fiscal year, resulting in reduced interest earnings for

the County. The County’s average interest rate fell from 2.28% in 2002 to 1.59% in 2003. As a benchmark, the County’s average yield of 1.59% should be compared to the 90-day Treasury Bill rate and the State Board of Administration’s rate at September 30, 2003 of .94% and 1.30%, respectively.

Management’s Discussion and Analysis

As fiscal managers of Escambia County, we offer readers of Escambia County’s financial statements thisnarrative overview and analysis of the financial activities of Escambia County for the fiscal year endedSeptember 30, 2003. We encourage readers to consider the information presented here in conjunctionwith additional information that we have furnished in our letter of transmittal, which can be found withinthis report.

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Financial Highlights

The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by$382,096,867 for fiscal 2003. Of this amount, $48,207,804 (unrestricted net assets) may be usedto meet the government’s ongoing obligations to citizens and creditors. Unrestricted net assetsincreased $5,121,073 over the previous year.

The County’s total net assets this fiscal year decreased $16,738,409 from the previous year witha decrease of $34,306,652 resulting from governmental activities and an increase of $17,568,243resulting from business-type activities. This decrease in governmental activities is partly due tothe $32,000,000 of bonds issued that was transferred to the Santa Rosa Island Authority as partof their capital improvement plan on the Island. The increase in net assets in the business-typeactivities is mainly due to the reduction in the required landfill closure liability of $10,367,898based upon reduced cost estimates from an independent engineering firm.

At September 30, Escambia County’s governmental funds reported combined ending fundbalances of $126,413,623 an increase of $41,015,908 in comparison with the prior year. Of thisamount, $92,433,829 remains in the various fund types of the County as unreserved.

The General Fund reported an unreserved fund balance of $17,091,937; an increase from lastfiscal year of $1,950,585.

Escambia County’s total bonded debt, leases and loans increased $67,571,683 from the previousfiscal year. The key factor in this increase was the issuance of three new bond issues. Theseissues refunded some of the old debt as well as provided new monies for additional capitalprojects.

Governmental Funds’ revenues increased $4,748,594 or 2.19% over the prior fiscal year.

Governmental Funds’ expenditures increased $44,980,084 or 20.75% over the prior fiscal year.The key factors in this increase were the inception of the new Public Safety Building Project, andthe County Courthouse Complex project. Also, included in the increase is the transfer of$32,000,000 of new bond money to the Santa Rosa Island Authority for the beach nourishmentproject and the road improvements project on the Island.

New closure estimates of the County’s Perdido Landfill approved by State Authorities resulted ina decrease to the cash closure reserve of $535,527 for fiscal year 2003. The new estimates alsocontributed to a $10,367,898 increase in the Solid Waste Fund’s net assets. The County nowholds $8,789,328 for closure purposes with the current estimated remaining landfill life of 7 years.

Interest rates continued to fall over the last fiscal year, resulting in reduced interest earnings forthe County. The County’s average interest rate fell from 2.28% in 2002 to 1.59% in 2003. As abenchmark, the County’s average yield of 1.59% should be compared to the 90-day Treasury Billrate and the State Board of Administration’s rate at September 30, 2003 of .94% and 1.30%,respectively.

4

Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Escambia County’s basic financial statements. Escambia County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements Government-wide financial statements are designed to provide a broad overview of the financial position of Escambia County and are similar to private-sector financial statements. They include a statement of net assets and a statement of activities. The Statement of Net Assets shows the County’s assets less its liabilities as of September 30, 2003. The difference between these assets and liabilities is reported as net assets. Changes in net assets over time may be helpful in indicating an improving or deteriorating financial position. The Statement of Activities presents information showing how the net assets changed during the most recent fiscal year. The statement presents all underlying events giving rise to the change, regardless of the timing of the related cash flows . Some included items, such as accounts payable or earned but unused vacation leave, will produce changes in cash in a future fiscal period. Both government-wide statements distinguish functions of Escambia County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). Governmental activities reported in the statements include general government, public safety, physical environment, transportation, economic environment, human services and culture and recreation. Major business activities in Escambia County include landfill operations, civic center operations, and the economic development and industrial park operations. Other business activities include inspections and emergency medical services (ambulance services). The government-wide financial statements include not only Escambia County itself (known as the “primary” government), but also the Santa Rosa Island Authority, the Housing Finance Authority, the Escambia County Law Library, and the Civil Service Board, all legally separate entities for which Escambia County is financially accountable. Financial information for these component units is reported separately from the financial information for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, Escambia County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of Escambia County government can be divided into three categories: governmental, proprietary and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions as those reported in the government-wide statement of net assets and statement of activities. However, unlike the government-wide financial statements, governmental fund financial statements focus on events that produce near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year and is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating Escambia County’s near-term financing requirements and available resources.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to Escambia County’s basicfinancial statements. Escambia County’s basic financial statements comprise three components: 1)government-wide financial statements, 2) fund financial statements, and 3) notes to the financialstatements. This report also contains other supplementary information in addition to the basic financialstatements themselves.

Government-Wide Financial Statements

Government-wide financial statements are designed to provide a broad overview of the financial positionof Escambia County and are similar to private-sector financial statements. They include a statement ofnet assets and a statement of activities

The Statement of Net Assets shows the County’s assets less its liabilities as of September 30, 2003.The difference between these assets and liabilities is reported as net assets. Changes in net assets overtime may be helpful in indicating an improving or deteriorating financial position.

The Statement of Activities presents information showing how the net assets changed during the mostrecent fiscal year. The statement presents all underlying events giving rise to the change, regardless ofthe timing of the related cash flows. Some included items, such as accounts payable or earned butunused vacation leave, will produce changes in cash in a future fiscal period.

Both government-wide statements distinguish functions of Escambia County that are principallysupported by taxes and intergovernmental revenues (governmental activities) from other functions thatare intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

Governmental activities reported in the statements include general government, public safety, physicalenvironment, transportation, economic environment, human services and culture and recreation. Majorbusiness activities in Escambia County include landfill operations, civic center operations, and theeconomic development and industrial park operations. Other business activities include inspections andemergency medical services (ambulance services). The government-wide financial statements includenot only Escambia County itself (known as the “primary’ government), but also the Santa Rosa IslandAuthority, the Housing Finance Authority, the Escambia County Law Library, and the Civil Service Board,all legally separate entities for which Escambia County is financially accountable. Financial informationfor these component units is reported separately from the financial information for the primarygovernment itself.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have beensegregated for specific activities or objectives. Like other state and local governments, Escambia Countyuses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Allfunds of Escambia County government can be divided into three categories: governmental, proprietaryand fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions asthose reported in the government-wide statement of net assets and statement of activities. However,unlike the government-wide financial statements, governmental fund financial statements focus on eventsthat produce near-term inflows and outflows of spendable resources as well as on the balances ofspendable resources available at the end of the fiscal year and is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating Escambia County’s near-termfinancing requirements and available resources.

5

By comparing functions between the two sets of statements for governmental funds and governmental activities, readers may better understand the long-term impact of the government’s near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison. Governmental funds individually presented in Escambia County’s statements include five major funds, the General Fund, the Transportation and Drainage Fund, the Debt Service Fund, the Capital Improvement Program Fund, and the Local Option Sales Tax Fund. Although there are many smaller governmental funds in Escambia County’s government, they have been presented in a total column termed as “other governmental funds.” Combining statements for these other governmental funds have been presented in the combining statements and schedules section of this report. Escambia County adopts an annual appropriated budget for its general fund, special revenue funds (except for the General Trust Fund), debt service fund, and capital projects funds. Budgetary comparison statements and schedules have been provided for these funds to demonstrate budgetary compliance. Proprietary Funds. Escambia County maintains and presents two different types of proprietary funds--enterprise and internal service. Enterprise funds report, in greater detail, the same information presented as business-type activities in the government-wide financial statements for landfill operations, inspections, emergency medical services, civic center, and industrial parks. Inspections and emergency medical services are presented in one total column but may be separately reviewed in the combining statements elsewhere in the report. The internal service fund is an accounting mechanism to accumulate and allocate costs internally for Escambia County’s government. The County uses an internal service fund to account for the risk financing activities for the County’s insurance program. The risk management program is established to retain some risk of certain claims including worker’s compensation and casualty and property insurance. The internal service fund is presented in the Proprietary Funds financial statements. Fiduciary Funds. Escambia County uses fiduciary agency funds to account for resources held for the benefit of parties outside of county government. Although these funds are presented in the fund financial statements, they do not appear in the government-wide financial statements because the resources of these agency funds are not available to support Escambia County’s own programs. Agency funds are unlike all other fund types in that agency funds report only assets and liabilities. They do however, use the accrual basis of accounting to recognize receivables and payables. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in both the government-wide and fund financial statements. Other Information. Combining and individual statements and schedules referred to earlier, which present more detailed views of nonmajor funds used in governmental and enterprise funds, includes schedules for nonmajor special revenue funds, capital project funds, enterprise funds, and agency funds. Additional information about the County is found under the Statistical and Continuing Disclosure sections of this report.

Government-Wide Financial Analysis The Government Accounting Standards Board (GASB) mandated the “total” approach to governmental accounting with its Statement No. 34. Governmental accounting falls under their auspices to insure the uniform presentation of governmental financial statements that are accurate and complete in their presentation. This is the second fiscal year that the County has reported under this new model. Comparative data for fiscal years ending September 30, 2003 and 2002 are included in the analysis this year.

By comparing functions between the two sets of statements for governmental funds and governmentalactivities, readers may better understand the long-term impact of the government’s near term financingdecisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,expenditures and changes in fund balances provide a reconciliation to facilitate this comparison.

Governmental funds individually presented in Escambia County’s statements include five major funds, theGeneral Fund, the Transportation and Drainage Fund, the Debt Service Fund, the Capital ImprovementProgram Fund, and the Local Option Sales Tax Fund. Although there are many smaller governmentalfunds in Escambia County’s government, they have been presented in a total column termed as “othergovernmental funds.’ Combining statements for these other governmental funds have been presented inthe combining statements and schedules section of this report.

Escambia County adopts an annual appropriated budget for its general fund, special revenue funds(except for the General Trust Fund), debt service fund, and capital projects funds. Budgetary comparisonstatements and schedules have been provided for these funds to demonstrate budgetary compliance.

Proprietary Funds. Escambia County maintains and presents two different types of proprietary funds--enterprise and internal service.

Enterprise funds report, in greater detail, the same information presented as business-type activities inthe government-wide financial statements for landfill operations, inspections, emergency medicalservices, civic center, and industrial parks. Inspections and emergency medical services are presented inone total column but may be separately reviewed in the combining statements elsewhere in the report.

The internal service fund is an accounting mechanism to accumulate and allocate costs internally forEscambia County’s government. The County uses an internal service fund to account for the riskfinancing activities for the County’s insurance program. The risk management program is established toretain some risk of certain claims including worker’s compensation awd casualty and property insurance.The internal service fund is presented in the Proprietary Funds financial statements.

Fiduciary Funds. Escambia County uses fiduciary agency funds to account for resources held for thebenefit of parties outside of county government. Although these funds are presented in the fund financialstatements, they do not appear in the government-wide financial statements because the resources ofthese agency funds are not available to support Escambia County’s own programs. Agency funds areunlike all other fund types in that agency funds report only assets and liabilities. They do however, usethe accrual basis of accounting to recognize receivables and payables.

Notes to the Financial Statements. The notes provide additional information that is essential to a fullunderstanding of the data provided in both the government-wide and fund financial statements.

Other Information. Combining and individual statements and schedules referred to earlier, whichpresent more detailed views of nonmajor funds used in governmental and enterprise funds, includesschedules for nonmajor special revenue funds, capital project funds, enterprise funds, and agency funds.Additional information about the County is found under the Statistical and Continuing Disclosure sectionsof this report.

Government-Wide Financial Analysis

The Government Accounting Standards Board (GASB) mandated the “total" approach to governmentalaccounting with its Statement No. 34. Governmental accounting falls under their auspices to insure theuniform presentation of governmental financial statements that are accurate and complete in theirpresentation. This is the second fiscal year that the County has reported under this new model.Comparative data for fiscal years ending September 30, 2003 and 2002 are included in the analysis thisyeah

6

Net Assets Governmental Business-type Activities Activities Total 2003 2002 2003 2002 2003 2002 Current and other assets $161,508,167 $114,490,722 $19,610,048 $19,106,576 $181,118,215 $133,597,298 Capital assets 410,536,379 408,334,808 44,301,985 40,895,046 454,838,364 449,229,854

Total assets $572,044,546 $522,825,530 $63,912,033 $60,001,622 $635,956,579 $582,827,152 Long-term liabilities 222,311,663 143,421,363 11,057,125 26,178,841 233,368,788 169,600,204

Other liabilities 16,576,916 11,941,548 3,914,008 2,450,124 20,490,924 14,391,672 Total liabilities 238,888,579 155,362,911 14,971,133 28,628,965 253,859,712 183,991,876 Net assets: Invested in capital assets net of related debt 259,610,770 299,735,630 40,298,499 30,632,502 299,909,269 330,368,132 Restricted 33,979,794 25,111,677 0 268,736 33,979,794 25,380,413

Unrestricted 39,565,403 42,615,312 8,642,401 471,419 48,207,804 43,086,731

$333,155,967 $367,462,619 $48,940,900 $31,372,657 $382,096,867 $398,835,276

The overall financial position of the County decreased in fiscal year 2003 after seeing an increase in fiscal year 2002. As noted earlier, changes in net assets over time can be one of the best and most useful indicators of the County’s financial position. Excluding the $32,000,000 transfer of assets to the Santa Rosa Island Authority, Escambia County’s increase in net assets for the fiscal years ending September 30, 2003 and 2002 amounted to $15,261,591 and $15,368,303, respectively. Overall the County experienced a 4.2% decrease in total net assets. The majority of the decrease is due to increased personnel costs and increased interest costs due to new and refunded bond activity. As mentioned previously, $32,000,000 of bond funds was transferred to the Santa Rosa Island Authority for road improvement projects and sand nourishment on the Island. There is an inter-local agreement between the Santa Rosa Island Authority and Escambia County in which the Santa Rosa Island Authority has pledged to pay Escambia County $600,000 annually of it’s lease revenues through the year 2032. This payment is pledged for repayment on the Tourist Development Refunding Revenue Bonds, Series 2002 and the Capital Improvement Revenue Bonds, Series 2002. The County’s unemployment rate went up 5% in fiscal 2003, but remains below average for the State. Despite the increase in unemployment, the County’s fiscal outlook remains positive as evidenced by the contained increases in property value assessments throughout the County.

Net Assets

Governmental Business-typeActivities Activities Total

Current and other assetsCapital assets

Total assets

Long-term liabilities

Other liabilitiesTotal liabilities

Net assets:Invested in capital assets

net of related debtRestricted

Unrestricted

2003 2002 2003 2002 2003 2002

$161,508,167410,536,379

$114,490,722408,334,808

$19,610,04844,301,985

$19,106,57640,895,046

$181,118,215454,838,364

$133,597,298449,229,854

$572,044,546

222,311,66316,576,916

$522,825,530

143,421,36311,941,548

$63,912,033

11,057,1253,914,008

$60,001,622

26,178,8412,450,124

$635,956,579

233,368,78820,490,924

$582,827,152

169,600,20414,391,672

238,888,579

259,610,77033,979,79439,565,403

155,362,911

299,735,63025,111,67742,615,312

14,971,133

40,298,4990

8,642,401

28,628,965

30,632,502268,736471 ,419

253,859,712

299,909,26933,979,79448,207,804

183,991,876

330,368,13225,380,41343,086,731

$333,155,967 $367,462,619 $48,940,900 $31,372,657 $382,096,867 $398,835,276

The overall financial position of the County decreased in fiscal year 2003 after seeing an increase in fiscalyear 2002. As noted earlier, changes in net assets over time can be one of the best and most usefulindicators of the County’s financial position. Excluding the $32,000,000 transfer of assets to the SantaRosa Island Authority, Escambia County’s increase in net assets for the fiscal years ending September30, 2003 and 2002 amounted to $15,261,591 and $15,368,303, respectively. Overall the Countyexperienced a 4.2% decrease in total net assets.

The majority of the decrease is due to increased personnel costs and increased interest costs due to newand refunded bond activity.

As mentioned previously, $32,000,000 of bond funds was transferred to the Santa Rosa Island Authorityfor road improvement projects and sand nourishment on the Island. There is an inter-local agreementbetween the Santa Rosa Island Authority and Escambia County in which the Santa Rosa Island Authorityhas pledged to pay Escambia County $600,000 annually of it’s lease revenues through the year 2032.This payment is pledged for repayment on the Tourist Development Refunding Revenue Bonds, Series2002 and the Capital Improvement Revenue Bonds, Series 2002.

The County’s unemployment rate went up 5% in fiscal 2003, but remains below average for the State.Despite the increase in unemployment, the County’s fiscal outlook remains positive as evidenced by thecontained increases in property value assessments throughout the County.

7

As in the prior year, at the end of the fiscal year 2003, the County is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for it’s separate governmental and business-type activities. The County’s unrestricted net assets at September 30, 2003 increased $5,121,073 from 2002. The County’s restricted net assets also increased from 2002 by $8,599,381. Unrestricted net assets are County resources that may be used to meet the County’s ongoing obligations to citizens and creditors while restricted net assets are resources subject to external restriction.

Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery and equipment, as a percentage of net assets, amounts to 78% and 83% at September 2003, and 2002, respectively. These asset values are presented less any outstanding debt related to the acquisition and accumulated depreciation of those assets. The County uses capital assets to provide services to the citizens and consequently these assets are not available for future spending. Although our investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Cash and investment accounts of the County’s funds increased a total of $41,673,724 from the previous year, increasing $41,833,940 of that amount in the current asset category and decreasing $160,216 in the restricted asset category. Unspent bond proceeds were the major source of the increase. A comparison of current unrestricted assets as compared to current unrestricted liabilities for both governmental and business-type activities can be a good indication of the County’s ability to meet its current and existing operational responsibilities. The ratios for both years are as follows:

Escambia County, Florida Comparison of Current Unrestricted Assets and Liabilities (in thousands)

Governmental Business-type

Activities Activities Fiscal year ending September 30, 2003: Current unrestricted assets $159,467 $14,125 Current unrestricted liabilities $16,577 $3,622 Ratio of current assets to current liabilities 9.62 3.90

Fiscal year ending September 30, 2002: Current unrestricted assets $114,403 $13,457 Current unrestricted liabilities $11,885 $1,036 Ratio of current assets to current liabilities 9.62 12.99

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

2003 2002 2003 2002

Net Capital Assets

Restr ic ted Net Assets

Unrestr ic ted Net Assets

As in the prior year, at the end of the fiscal year 2003, the County is able to report positive balances in allthree categories of net assets, both for the government as a whole, as well as for it’s separategovernmental and business-type activities. The County’s unrestricted net assets at September 30, 2003increased $5,121,073 from 2002. The County’s restricted net assets also increased from 2002 by$8,599,381. Unrestricted net assets are County resources that may be used to meet the County’songoing obligations to citizens and creditors while restricted net assets are resources subject to externalrestriction.

350,000,000

300,000,000

250,000,000

200,000,000 D NelCepltal Assets

E Restricted NelAssels

150,000,000 D Unrestricted NelAsSetS

100,000,000

50,000,000

0

Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery andequipment, as a percentage of net assets, amounts to 78% and 83% at September 2003, and 2002,respectively. These asset values are presented less any outstanding debt related to the acquisition andaccumulated depreciation of those assets. The County uses capital assets to provide services to thecitizens and consequently these assets are not available for future spending. Although our investment incapital assets is reported net of related debt, it should be noted that the resources needed to repay thisdebt must be provided from other sources, since the capital assets themselves cannot be used toliquidate these liabilities.

Cash and investment accounts of the County’s funds increased a total of $41,673,724 from the previousyear, increasing $41,833,940 of that amount in the current asset category and decreasing $160,216 in therestricted asset category. Unspent bond proceeds were the major source of the increase.

A comparison of current unrestricted assets as compared to current unrestricted liabilities for bothgovernmental and business-type activities can be a good indication of the County’s ability to meet itscurrent and existing operational responsibilities. The ratios for both years are as follows:

Escambia County, FloridaComparison of Current Unrestricted Assets and Liabilities (in thousands)

Governmental Business-type

Activities ActivitiesFiscal year ending September 30, 2003:

Current unrestricted assets $159,467 $14,125Current unrestricted liabilities $16,577 $3,622Ratio of current assets to current liabilities 9.62 3.90

Fiscal year ending September 30, 2002:

Current unrestricted assets $114,403 $13,457Current unrestricted liabilities $11,885 $1,036Ratio of current assets to current liabilities 9.62 12.99

8

The main factor for the increase in business-type liabilities is the increased activity in the Economic Development and Industrial Fund. The County actively began developing two commerce parks this fiscal year causing an increase in amounts due and payable to vendors at year end. The County continues to maintain healthy ratios as noted above which indicates and reflects the more than adequate cash flows of Escambia County.

Escambia County, Florida Changes In Net Assets

Year Ended September 30, 2003 Governmental Business-type Activities Activities Totals 2003 2002 2003 2002 2003 2002

Revenues: Program Revenues: Charges for Services $31,749,597 $28,912,755 $24,237,909 $21,638,502 $55,987,506 $50,551,257 Operating Grants and Contributions 12,472,683 13,429,813 21,097 820 12,493,780 13,430,633 Capital Grants and Contributions 7,470,179 10,815,605 1,380,745 204,348 8,850,924 11,019,953

General Revenues: Property Taxes 91,944,193 87,147,301 0 0 91,944,193 87,147,301 Other Taxes 65,587,305 63,630,521 1,426,110 3,787,384 67,013,415 67,417,905 Other 14,455,771 13,015,384 1,096,190 1,264,158 15,551,961 14,279,542

Total Revenues 223,679,728 216,951,379 28,162,051 26,895,212 251,841,779 243,846,591 Expenses: General Government 32,475,261 35,989,263 0 0 32,475,261 35,989,263 Public Safety 105,844,911 92,078,863 0 0 105,844,911 92,078,863 Physical Environment 11,608,537 1,609,876 0 0 11,608,537 1,609,876

Transportation 74,160,788 48,392,098 0 0 74,160,788 48,392,098 Economic Environment 11,194,640 10,754,806 0 0 11,194,640 10,754,806 Human Services 4,340,688 4,143,983 0 0 4,340,688 4,143,983 Culture/Recreation 4,187,822 5,695,732 0 0 4,187,822 5,695,732 Interest on Long-Term Debt 8,584,343 5,316,046 0 0 8,584,343 5,316,046 Landfill Operations 0 0 6,702,610 5,378,050 6,702,610 5,378,050 Building Inspections 0 0 3,217,414 3,451,648 3,217,414 3,451,648 Ambulance Service 0 0 11,076,762 10,520,370 11,076,762 10,520,370

Civic Center 0 0 5,046,735 4,663,308 5,046,735 4,663,308 Industrial Parks 0 0 507,575 484,245 507,575 484,245 Total Expenses 252,396,990 203,980,667 26,551,096 24,497,621 278,948,086 228,478,288 Landfill Closure Estimate 0 0 10,367,898 0 10,367,898 0 Increase (Decreas e) in Net Assets

before Transfers (28,717,262) 12,970,712 11,978,853 2,397,591 (16,738,409) 15,368,303 Transfers (5,589,390) 2,540,496 5,589,390 (2,540,496) 0 0 Increase (Decrease) in Net Assets (34,306,652) 15,511,208 17,568,243 (142,905) (16,738,409) 15,368,303 Net Assets, beginning 367,462,619 351,951,411 31,372,657 31,515,562 398,835,276 383,466,973

Net Assets, ending $333,155,967 $367,462,619 $48,940,900 $31,372,657 $382,096,867 $398,835,276

The main factor for the increase in business-type liabilities is the increased activity in the EconomicDevelopment and Industrial Fund. The County actively began developing two commerce parks this fiscalyear causing an increase in amounts due and payable to vendors at year end.

The County continues to maintain healthy ratios as noted above which indicates and reflects the morethan adequate cash flows of Escambia County.

Escambia County, FloridaChanges In Net Assets

Year Ended September 30, 2003

Governmental Business-typeActivities Activities Totals

Revenues:Program Revenues:

Charges for ServicesOperating Grants and

ContributionsCapital Grants and

Contributions

General Revenues:Property TaxesOther Taxes

Other

Total Revenues

Expenses:General GovernmentPublic SafetyPhysical Environment

TransportationEconomic EnvironmentHuman ServicesCulture/RecreationInterest on Long-Term DebtLandfill OperationsBuilding InspectionsAmbulance Service

Civic CenterIndustrial Parks

Total Expenses

Landfill Closure Estimate

Increase (Decreas e) in Net Assets

before TransfersTransfersIncrease (Decrease) in Net AssetsNet Assets, beginning

Net Assets, ending

2003 2002 2003 2002 2003 2002

$31,749,597

12,472,683

7,470,179

91,944,19365,587,30514,455,771

$28,912,755

13,429,813

10,815,605

87,147,30163,630,52113,015,384

$24,237,909

21,097

1 ,380,745

01,426,1101,096,190

$21,638,502

820

204,348

03,787,3841,264,158

$55,987,506

12,493,780

8,850,924

91,944,19367,013,41515,551,961

$50,551,257

13,430,633

11,019,953

87,147,30167,417,90514,279,542

223,679,728 216,951,379 28,162,051 26,895,212 251,841,779 243,846,591

32,475,261105,844,911

11,608,53774,160,78811,194,6404,340,6884,187,8228,584,343

OO

OO

O

35,989,26392,078,863

1,609,87648,392,09810,754,8064,143,9835,695,7325,316,046

000O0

00

00

00

0

06,702,6103,217,414

11,076,7625,046,735

507,575

OO

OO

OO

OO

5,378,0503,451,648

10,520,3704,663,308

484,245

32,475,261105,844,91111,608,53774,160,78811,194,6404,340,6884,187,8228,584,3436,702,6103,217,414

11,076,7625,046,735

507,575

35,989,26392,078,863

1,609,87648,392,09810,754,8064,143,9835,695,7325,316,0465,378,0503,451,648

10,520,3704,663,308

484,245252,396,990

(28,717,262)(5,589,390)

203,980,667

12,970,7122,540,496

26,551,096

10,367,898

11,978,8535,589,390

24,497,621

2,397,591(2,540,496)

278,948,086

10,367,898

(16,738,409)0

228,478,288

15,368,3030

(34,306,652)367,462,619

15,511,208351,951,411

17,568,24331,372,657

(142,905)31,515,562

(16,738,409)398,835,276

15,368,303383,466,973

$333,155,967 $367,462,619 $48,940,900 $31,372,657 $382,096,867 $398,835,276

9

Governmental Activities Increased revenues and expenses over fiscal year 2002 can be noted in most areas of governmental activity in fiscal year 2003; the largest expense increase occurred in the two largest functions of our County government, public safety and transportation. Reasons for increased costs as explained earlier, particularly those of public safety, reflect the County’s commitment to efficiently manage the basic needs of our growing population. The increase in the transportation and the physical environment functions is attributed to the County’s commitment to renourish the sand at the beach as well as enhance the roads on the Island. Due to growing tourism and growth in popularity of living at the beach, the need for sand renourishment and new and enhanced roads prompted the County to issue bonds to finance the costs of the projects. Custody of the bond proceeds was transferred to the Santa Rosa Island Authority, as they are managing the projects. As mentioned above, governmental expense and revenue activity increased due to the continued growth of the County. The County’s population increased 571 in this fiscal year and 2,299 in fiscal year 2002. These increased costs caused governmental net assets to decrease $2,306,652 (excluding the $32,000,000 transfer to Santa Rosa Island Authority mentioned earlier) from last year’s net assets increase of $15,511,208.

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$10,000,000

$20,000,000

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$70,000,000

$80,000,000

$90,000,000

Do

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Governmental Activities - Expenses and Program RevenuesFor the Fiscal Year 2003

Expenses

Program Revenues

Governmental Activities

Increased revenues and expenses over fiscal year 2002 can be noted in most areas of governmentalactivity in fiscal year 2003; the largest expense increase occurred in the two largest functions of ourCounty government, public safety and transportation. Reasons for increased costs as explained earlier,particularly those of public safety, reflect the County’s commitment to efficiently manage the basic needsof our growing population. The increase in the transportation and the physical environment functions isattributed to the County’s commitment to renourish the sand at the beach as well as enhance the roadson the Island. Due to growing tourism and growth in popularity of living at the beach, the need for sandrenourishment and new and enhanced roads prompted the County to issue bonds to finance the costs ofthe projects. Custody of the bond proceeds was transferred to the Santa Rosa Island Authority, as theyare managing the projects.

As mentioned above, governmental expense and revenue activity increased due to the continued growthof the County. The County’s population increased 571 in this fiscal year and 2,299 in fiscal year 2002.

These increased costs caused governmental net assets to decrease $2,306,652 (excluding the$32,000,000 transfer to Santa Rosa Island Authority mentioned earlier) from last year’s net assetsincrease of $15,511,208.

Governmental Activities - Expenses and Program RevenuesFor the Fiscal Year 2003

$90,000,000 —]

$80,000,000 —

$70,000,000 —/

$60,000,000 —" \

$50,000,000-

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$20,000,000-

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10

Business-type Activities Business-type activities increased the County’s net assets by $17,568,243 for the fiscal year 2003 as compared to a decrease of $142,905 for fiscal year 2002. Key elements of this increase are: v The general government assumed the debt connected to the Civic Center through the refunding

of the Tourist Development Revenue Bonds, which allowed the Civic Center to remove their liability for the bonds in the amount of $4,650,000.

v Due to a change in estimate of the landfill’s closure and postclosure care costs, the Solid Waste

Fund reduced the landfill closure and postclosure care liability, which offset their expenses for the year by $10,367,898.

v Increased activity in the development of the County’s two industrial parks resulted in an increase

of grant revenues to help fund those projects.

Governmental Activities - Revenue by SourceFor the Fiscal Year 2003

Charges for Services14%

Operating grants and contributions6%

Capital grants and contributions3%

Property taxes42%

Sales taxes22%

Rents and royalties0%

Tourist development taxes2%

Licenses, permits, and franchise fees0%

Payments in lieu of taxes0%

Gas taxes6%

Unrestricted interest1%

Sale of assets0%

Miscellaneous revenues1%

State shared revenue3%

Governmental Activities - Revenue by SourceFor the Fiscal Year 2003

Sale of assetsRents and royalties 0%

0%Miscellaneous revenues

. . oUnrestricted Interest 1 4’

1%

Charges for Sen/ices14%

Gas taxes6%

Operating grants and contributionsSales taxes 6“/

22% Capital grant; and contributions3%

State shared revenue3%

Licenses, permits, and franchise fees0%

Property taxesPayments in lieu of taxes 42%

0%

Tourist development taxes2%

Business-type Activities

Business-type activities increased the County’s net assets by $17,568,243 for the fiscal year 2003 ascompared to a decrease of $142,905 for fiscal year 2002. Key elements of this increase are:

0:. The general government assumed the debt connected to the Civic Center through the refundingof the Tourist Development Revenue Bonds, which allowed the Civic Center to remove theirliability for the bonds in the amount of $4,650,000.

0:. Due to a change in estimate of the landfill’s closure and postclosure care costs, the Solid WasteFund reduced the landfill closure and postclosure care liability, which offset their expenses for theyear by $10,367,898.

0:. Increased activity in the development of the County's two industrial parks resulted in an increaseof grant revenues to help fund those projects.

10

11

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

$11,000,000

$12,000,000

Solid Waste Civic Center Inspections Ambulance Economic Development

Business-type ActivitiesExpenses and Program Revenues

For the Fiscal Year 2003

Expenses

Program Revenues

Business-type ActivitiesRevenues by Source


Charges for services79%



Licenses and permits9%

Franchise fees5%

Interest revenues1%

Other1%

Business-type ActivitiesExpenses and Program Revenues


$12,000,000

$11,000,000

$10,000,000

$9,000,000

$8,000,000

$7, 000, 000

$6 000 000n Expenses

Program Revenues

$5, 000, 000

$4, 000, 000

$3, 000, 000

$2, 000, 000

$1,000,000

$0Solid Waste Civic Center Inspections Ambulance Economic Development

Business-type ActivitiesRevenues by Source


Other1%

Interest revenues1%

Franchise fees5%

Licenses and permits9%



Charges for services79%

11

12

Financial Analysis of Escambia County’s Funds

As noted earlier, Escambia County employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. Governmental funds focus on providing information on near-term inflows, outflows, and balances of spendable resources . In assessing Escambia County’s financing requirements, unreserved fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year. The governmental fund types include the general fund, special revenue, debt service, and capital projects funds. As of September 30, 2003, Escambia County governmental funds reported combined fund balances of $126,413,623, an increase/decrease of $41,015,908 over prior year balances. Governmental funds reserved $24,414,372 of fund balance to meet current commitments in the next fiscal year, $985,292 for inventory, $393,537 for advances made to other funds, and $8,186,593 to meet debt service requirements next fiscal year. Major Fund Information (in Thousands) Transportation Capital Local General and Debt Improvement Option Sales Fund Drainage Service Program Tax (LOST) Fiscal Year 2003 Revenues and other sources $139,331 $20,936 $67,939 $127,181 $35,293 Expenditures and other sources 137,431 19,875 71,553 88,493 29,731 Increase (decrease) in fund balance $1,900 $1,061 ($3,614) $38,688 $5,562

Fiscal Year 2002 Revenues and other sources $135,423 $17,652 $16,056 $256 $30,446 Expenditures and other sources 137,058 16,699 16,014 2,752 32,843 Increase (decrease) in fund balance ($1,635) $953 $42 ($2,496) ($2,397)

The General Fund is the chief operating fund of the County. At September 30, 2003, total fund balance in the general fund was $17,923,822 of which $17,091,937 was unreserved. As a measure of the general fund’s liquidity, a comparison of both total and unreserved fund balances compared to total fund expenditures shows percentages of 13% and 12.4%, respectively. The fund balances of the County’s General Fund increased by $1,899,826 during the current fiscal year. Key factors in this increase are as follows: v Even though the millage rate remained constant at 8.756 mills, the County experienced an

increase in property tax revenues due to an increase in assessed/taxable property values. v Total revenues increased 4.6% from fiscal year 2002 while expenditures increased at a slightly

lower rate of 1.7% from fiscal year 2002. That net increase, when combined with transfer activity, resulted in an increase to fund balance of $1,899,826.

The Other Major Governmental Funds include the Transportation and Drainage Fund, Debt Service Fund, Capital Improvement Program Fund, and the Local Option Sales Tax (LOST) Fund. Data for these funds is presented above for fiscal years 2003 and 2002. Taxes are a major source of revenue for both the Transportation and Drainage Fund and the LOST Fund. Gas taxes are used by the Transportation Fund for the construction and maintenance of roads in the

Financial Analysis of Escambia County’s Funds

As noted earlier, Escambia County employs fund accounting to ensure and demonstrate compliance withfinance-related legal requirements.

Governmental Funds. Governmental funds focus on providing information on near-term inflows,outflows, and balances of spendab/e resources. In assessing Escambia County’s financing requirements,unreserved fund balance is a particularly useful measure of net resources available for spending at theend of the fiscal year. The governmental fund types include the general fund, special revenue, debtservice, and capital projects funds.

As of September 30, 2003, Escambia County governmental funds reported combined fund balances of$126,413,623, an increase/decrease of $41,015,908 over prior year balances. Governmental fundsreserved $24,414,372 of fund balance to meet current commitments in the next fiscal year, $985,292 forinventory, $393,537 for advances made to other funds, and $8,186,593 to meet debt servicerequirements next fiscal year.

Major Fund Information (in Thousands)Transportation Capital Local

General and Debt Improvement Option SalesFund Drainage Service Program Tax (LOST)

Fiscal Year 2003Revenues and other sources $139,331 $20,936 $67,939 $127,181 $35,293Expenditures and other sources 137,431 19,875 71,553 88,493 29,731Increase (decrease) in fund balance $1,900 $1,061 ($3,614) $38,688 $5,562

Fiscal Year 2002Revenues and other sources $135,423 $17,652 $16,056 $256 $30,446Expenditures and other sources 137,058 16,699 16,014 2,752 32,843Increase (decrease) in fund balance ($1,635) $953 $42 ($2,496) ($2,397)

The General Fund is the chief operating fund of the County. At September 30, 2003, total fund balancein the general fund was $17,923,822 of which $17,091,937 was unreserved. As a measure of the generalfund’s liquidity, a comparison of both total and unreserved fund balances compared to total fundexpenditures shows percentages of 13% and 12.4%, respectively. The fund balances of the County’sGeneral Fund increased by $1,899,826 during the current fiscal year. Key factors in this increase are asfollows:

0:. Even though the millage rate remained constant at 8.756 mills, the County experienced anincrease in property tax revenues clue to an increase in assessed/taxable property values.

0:. Total revenues increased 4.6% from fiscal year 2002 while expenditures increased at a slightlylower rate of 1.7% from fiscal year 2002. That net increase, when combined with transfer activity,resulted in an increase to fund balance of $1,899,826.

The Other Major Governmental Funds include the Transportation and Drainage Fund, Debt ServiceFund, Capital Improvement Program Fund, and the Local Option Sales Tax (LOST) Fund. Data for thesefunds is presented above for fiscal years 2003 and 2002.

Taxes are a major source of revenue for both the Transportation and Drainage Fund and the LOST Fund.Gas taxes are used by the Transportation Fund for the construction and maintenance of roads in the

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County. The LOST imposed on Escambia County is used by the LOST Fund to acquire and construct capital projects within the County. Revenues and expenditures in the Transportation and Drainage Fund appear to remain stable over the two-year period. The LOST Fund was able to sell some property it had acquired two years ago and received almost $4.4 million from the sale. This is not expected to recur in future years. New bond issues in 2003 were the major source of revenue for both the Debt Service Fund and the Capital Improvement Fund. Details on the bonds issued and the bonds refunded can be found on the Notes to the Financial Statements. Between the two funds, $123,253,235 was received as revenue from bonds issued, while $53,857,245 was used to refund outstanding bonds. Proprietary Funds. Proprietary fund statements provide the same information as in the business activities column of the government-wide statements, but in greater detail, and on a fund basis for enterprise funds and the internal service fund. The major enterprise funds reported are the Solid Waste Fund, the Civic Center Fund, and the Economic Development and Industrial Fund. Enterprise Funds. At September 30, 2003, total net asset amounted to $48,940,900 for enterprise funds, as compared to $31,372,657 at September 30, 2002. Changes to net assets are a result of operations, other non-operating revenues and expenses, capital contributions and grants. The increase in net assets for enterprise funds was $17,568,243 over fiscal year 2002, a 56% increase. As explained earlier, $10,367,898 of this increase was a result of new landfill closure estimates. Operating income is the result of operating revenues less operating expenses. The chart below compares operating income or loss for all enterprise funds. While operating revenues in the Solid Waste Fund remained fairly stable, the fund experienced an increase in operating expenses of nearly 25%. The re-organization and merging of the Code Enforcement Division from the General Fund into the Solid Waste Fund accounts for the majority of this increase. Although the Civic Center saw an increase in operating revenues of $131,516, there was an offsetting increase in contractual services of $273,331. This increase was caused by rising personnel and general operating costs. In addition, new portable seating was purchased that could be set up on the floor of the arena as needed at a cost of $94,500. The major source of revenue in the Economic Development and Industrial Fund this fiscal year resulted from funding from the State of Florida for the development of one of the County’s two commerce parks. Once the parks are developed, the land sites will be sold to prospective business ventures as part of the County’s economic development plan to bring industry to the area. A slight increase in operating revenues, combined with a decrease in operating expenses resulted in a decrease in net loss to the Inspection Fund of $381,504 as compared to fiscal 2002. However, the Ambulance Fund, while maintaining a steady revenue stream experienced an increase in personal services, causing the fund to increase its operating loss by $40,838 compared to fiscal year 2002.

Operating Income (Loss) 2003 2002 Solid Waste Fund $2,461,898 $4,277,334 Civic Center Fund (1,825,877) (1,464,627)Economic Development and Industrial Fund 1,002,548 (234,193)Inspection Fund (510,552) (892,056)Ambulance Fund (229,013) (188,175) Total $899,004 $1,498,283

County. The LOST imposed on Escambia County is used by the LOST Fund to acquire and constructcapital projects within the County. Revenues and expenditures in the Transportation and Drainage Fundappear to remain stable over the two-year period. The LOST Fund was able to sell some property it hadacquired two years ago and received almost $4.4 million from the sale. This is not expected to recur infuture years.

New bond issues in 2003 were the major source of revenue for both the Debt Service Fund and theCapital Improvement Fund. Details on the bonds issued and the bonds refunded can be found on theNotes to the Financial Statements. Between the two funds, $123,253,235 was received as revenue frombonds issued, while $53,857,245 was used to refund outstanding bonds.

Proprietary Funds. Proprietary fund statements provide the same information as in the businessactivities column of the government-wide statements, but in greater detail, and on a fund basis forenterprise funds and the internal service fund. The major enterprise funds reported are the Solid WasteFund, the Civic Center Fund, and the Economic Development and Industrial Fund.

Enterprise Funds. At September 30, 2003, total net asset amounted to $48,940,900 for enterprise funds,as compared to $31,372,657 at September 30, 2002. Changes to net assets are a result of operations,other non-operating revenues and expenses, capital contributions and grants. The increase in net assetsfor enterprise funds was $17,568,243 over fiscal year 2002, a 56% increase. As explained earlier,$10,367,898 of this increase was a result of new landfill closure estimates.

Operating income is the result of operating revenues less operating expenses. The chart belowcompares operating income or loss for all enterprise funds.

While operating revenues in the Solid Waste Fund remained fairly stable, the fund experienced anincrease in operating expenses of nearly 25%. The re-organization and merging of the CodeEnforcement Division from the General Fund into the Solid Waste Fund accounts for the majority of thisincrease.

Although the Civic Center saw an increase in operating revenues of $131,516, there was an offsettingincrease in contractual services of $273,331. This increase was caused by rising personnel and generaloperating costs. In addition, new portable seating was purchased that could be set up on the floor of thearena as needed at a cost of $94,500.

The major source of revenue in the Economic Development and Industrial Fund this fiscal year resultedfrom funding from the State of Florida for the development of one of the County’s two commerce parks.Once the parks are developed, the land sites will be sold to prospective business ventures as part of theCounty’s economic development plan to bring industry to the area.

A slight increase in operating revenues, combined with a decrease in operating expenses resulted in adecrease in net loss to the Inspection Fund of $381,504 as compared to fiscal 2002. However, theAmbulance Fund, while maintaining a steady revenue stream experienced an increase in personalservices, causing the fund to increase its operating loss by $40,838 compared to fiscal year 2002.

Operating Income (Loss)2003 2002

Solid Waste Fund $2,461,898 $4,277,334Civic Center Fund (1,825,877) (1,464,627)Economic Development and Industrial Fund 1,002,548 (234,193)Inspection Fund (510,552) (892,056)Ambulance Fund (229,013) (188,175)

Total $899,004 $1,498,283

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Major enterprise funds are shown in the Financial Statements Section and the Non-Major enterprise funds are shown in the “Combining Statements” section of the annual report. Other factors concerning the finances of these funds have been addressed in the discussion of the County’s business-type activities. Internal Service Fund. The Internal Service Fund is designed to recover the internal costs of general services provided to the other fund groups. The decrease in total net asset balance for the internal service fund this fiscal year over last fiscal year was $3,885,061, a 258% decrease. Losses were once again posted for the Internal Service Fund. Increased costs in the County’s insurance programs accounted for most of the change and were a result of increased workers compensation claims filed and additional funding for insurance claims incurred but not reported. The net asset total for the internal service fund is ($2,381,675) and $1,503,386 for the fiscal years 2003 and 2002, respectively.

General Fund Budgetary Highlights Operating a government the size of Escambia County is a dynamic business and budget amendments are approved throughout the year. When comparing the original revenue budget to the final revenue budget, budget adjustments occurred in charges for services and miscellaneous income. The increase in the charges for services and miscellaneous revenue budgets is related to amounts received by the County from outside agencies for various items such as court-related services, recreational park fees and various reimbursements. Differences between the original budgeted expenditures and the final amended budget were relatively minor with an increase of $594,960 in appropriations, and can be briefly summarized as follows: v Increase in general government activities of $365,174 v Increase in public safety activities of $534,048 v Increase in physical environment activities of $7,200 v Decrease in transportation of $148,910 v Decrease in human services of $183,112 v Increase in culture and recreation of $20,560 Although revenues fell short of budgetary estimates, expenditures were less than budgetary estimates as well, thereby eliminating the need to draw upon existing fund balance.

Capital Asset and Debt Administration Capital Assets. The financial statements present capital assets in two groups: those assets subject to depreciation, such as equipment or operational facilities and those assets not subject to depreciation such as land and construction-in-progress. Escambia County’s investment in capital assets for both governmental and business-type activities, net of accumulated depreciation totaled $454,838,364 and $449,229,854 for fiscal years 2003 and 2002, respectively. This investment in capital assets, both purchased and donated, includes land, buildings, improvements, machinery and equipment, parks, roads, bridges and other major infrastructure. The total increase in Escambia County’s investment in capital assets for the current fiscal year was 1.25% (a .5% increase for governmental activities and a 8.3% increase for business-type activities).

Major enterprise funds are shown in the Financial Statements Section and the Non-Major enterprisefunds are shown in the ”Combining Statements” section of the annual report.

Other factors concerning the finances of hese funds have been addressed in the discussion of theCounty’s business-type activities.

Internal Service Fund. The Internal Service Fund is designed to recover the internal costs of generalservices provided to the other fund groups. The decrease in total net asset balance for the internalservice fund this fiscal year over last fiscal year was $3,885,061, a 258% decrease. Losses were onceagain posted for the Internal Service Fund. Increased costs in the County’s insurance programsaccounted for most of the change and were a result of increased workers compensation claims filed andadditional funding for insurance claims incurred but not reported. The net asset total for the internalservice fund is ($2,381,675) and $1,503,386 for the fiscal years 2003 and 2002, respectively.

General Fund Budgetary Highlights

Operating a government the size of Escambia County is a dynamic business and budget amendmentsare approved throughout the year. When comparing the original revenue budget to the final revenuebudget, budget adjustments occurred in charges for services and miscellaneous income. The increase inthe charges for services and miscellaneous revenue budgets is related to amounts received by theCounty from outside agencies for various items such as court-related services, recreational park fees andvarious reimbursements.

Differences between the original budgeted expenditures and the final amended budget were relativelyminor with an increase of $594,960 in appropriations, and can be briefly summarized as follows:

0:. Increase in general government activities of $365,1740:. Increase in public safety activities of $534,0480:. Increase in physical environment activities of $7,2000:. Decrease in transportation of $148,9100:. Decrease in human services of $183,1120:. Increase in culture and recreation of $20,560

Although revenues fell short of budgetary estimates, expenditures were less than budgetary estimates aswell, thereby eliminating the need to draw upon existing fund balance.

Capital Asset and Debt Administration

Capital Assets. The financial statements present capital assets in two groups: those assets subject todepreciation, such as equipment or operational facilities and those assets not subject to depreciationsuch as land and construction-in-progress.

Escambia County’s investment in capital assets for both governmental and business-type activities, net ofaccumulated depreciation totaled $454,838,364 and $449,229,854 for fiscal years 2003 and 2002,respectively. This investment in capital assets, both purchased and donated, includes land, buildings,improvements, machinery and equipment, parks, roads, bridges and other major infrastructure. The totalincrease in Escambia County's investment in capital assets for the current fiscal year was 1.25% (a .5%increase for governmental activities and a 8.3% increase for business-type activities).

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Major capital asset events during the current fiscal year include the following: v Construction continued on many of the County’s capital projects including road reconstruction,

dirt road paving, and various drainage projects amounting to an $11 million increase in infrastructure capital assets.

v The Mass Transit system (ECAT) purchased several new handicap equipped vans this year, in the amount of $1,335,992.

v The County purchased land and buildings for future use by the Public Safety Department at a cost of almost $1 million. The Public Safety Department also purchased a new fire ladder truck and five new pumper trucks at a cost of $1.8 million.

v Continued construction of the various Sheriff’s buildings such as the Administration Building and the Central Booking and Detention Center amounted to $2 million.

v Construction began on the new Public Safety Building and improvements were undertaken at the road prison in the amount of $4.2 million.

v The Road Department purchased significant pieces of new heavy equipment such as road sweepers, tractors, and dump trucks at a cost of over $2.7 million.

Governmental ActivitiesEscambia County, Florida

Capital Assets (net of depreciation)

Land

5%

Buildings and Improvements

22%

Infrastructure

64%

Equipment

6%

Construction in Progress

3%

Major capital asset events during the current fiscal year include the following:

0:. Construction continued on many of the County’s capital projects including road reconstruction,dirt road paving, and various drainage projects amounting to an $11 million increase ininfrastructure capital assets.

0:. The Mass Transit system (ECAT) purchased several new handicap equipped vans this year, inthe amount of $1,335,992.

0:. The County purchased land and buildings for future use by the Public Safety Department at acost of almost $1 million. The Public Safety Department also purchased a new fire ladder truckand five new pumper trucks at a cost of $1.8 million.

0:. Continued construction of the various Sheriff’s buildings such as the Administration Building andthe Central Booking and Detention Center amounted to $2 million.

0:. Construction began on the new Public Safety Building and improvements were undertaken at theroad prison in the amount of $4.2 million.

0:. The Road Department purchased significant pieces of new heavy equipment such as roadsweepers, tractors, and dump trucks at a cost of over $2.7 million.

Governmental ActivitiesEscambia County, Florida

Capital Assets(net of depreciation)

Constructionin Progress LandE ui ment

q p 3% 5%6%

Infrastructure64%

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Buildings and Improvements

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Sources of donated assets each year stem from new subdivisions in the County. New subdivisions are required to meet the County’s comprehensive planning requirements and, in doing so, provide additions to the County’s infrastructure for roads, sidewalks, stormwater drainage, and in some cases parks and recreational facilities. Additional information on Escambia County’s capital assets can be found in the Notes of this report. Long-Term Debt. At the end of the fiscal year 2003, the County had total bonded debt of $134,790,000, or $453 per capita, which is secured solely by specified revenue sources (e.g., toll bridge revenues, tourist development taxes, and half-cent sales taxes). The County has no general obligation debt. The County’s outstanding notes, leases, and bonded debt increased by $67,571,683 during fiscal year 2003. The key factor in this increase was the issuance of three new bond issues that provided new dollars to the County to provide funding for new major capital projects.

Business-type Activites Escambia County, Florida

Capital Assets(net of accumulated depreciation)

Land16%

Buildings and Improvements37%

Infrastructure34%

Equipment13%

Business-type ActivitesEscambia County, Florida

Capital Assets(net of accumulated depreciation)

Equipment Land13% 16%

“‘Infrastructu re

34% Buildings and Improvements37%

Sources of donated assets each year stem from new subdivisions in the County. New subdivisions arerequired to meet the County’s comprehensive planning requirements and, in doing so, provide additionsto the County’s infrastructure for roads, sidewalks, stormwater drainage, and in some cases parks andrecreational facilities.

Additional information on Escambia County’s capital assets can be found in the Notes of this report.

Long-Term Debt. At the end of the fiscal year 2003, the County had total bonded debt of $134,790,000,or $453 per capita, which is secured solely by specified revenue sources (e.g., toll bridge revenues,tourist development taxes, and half-cent sales taxes). The County has no general obligation debt.

The County’s outstanding notes, leases, and bonded debt increased by $67,571,683 during fiscal year2003. The key factor in this increase was the issuance of three new bond issues that provided newdollars to the County to provide funding for new major capital projects.

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Governmental Business-type Activities Activities Total

2003 2002 2003 2002 2003 2002 Revenue Bonds: Sales tax revenue bonds $89,730,000 $51,430,000 $0 $0 $89,730,000 $51,430,000 Road improvement bonds 6,055,000 8,795,000 0 0 6,055,000 8,795,000 Tourist development bonds 16,700,000 0 0 4,650,000 16,700,000 4,650,000 Capital improvement bonds 22,305,000 0 0 0 22,305,000 0

Total revenue bonds 134,790,000 60,225,000 0 4,650,000 134,790,000 64,875,000 Notes and loans: Capital improvement notes 41,747,000 47,974,872 0 829,128 41,747,000 48,804,000

FAC 0 850,000 0 0 0 850,000 State of Florida Toll Fac. Note 469,167 500,000 0 0 469,167 500,000 Line of Credit 0 0 1,184,362 1,579,149 1,184,362 1,579,149 Capital Leases 6,388,609 399,306 0 0 6,388,609 399,306

Total notes/loans/leases 48,604,776 49,724,178 1,184,362 2,408,277 49,789,138 52,132,455

Total Long-Term Debt $183,394,776 $109,949,178 $1,184,362 $7,058,277 $184,579,138 $117,007,455

Escambia County currently holds a bond rating from Standard & Poor’s of A+ with a positive outlook. The positive outlook indicates that a rating is expected to improve with the County’s continued growth and sound fiscal practices. The County has met and complied with all technical and financial covenants in the bond contracts. The Constitution of the State of Florida, Florida Statute 200.181 and Escambia County set no legal debt limit. Additional information on Escambia County’s long-term debt can be found in the Notes of this report.

Economic Factors and Year 2004 Budgets and Rates Factors considered in preparing Escambia County’s budget for the 2004 fiscal year included: v Residential building permit activity increased 17% during fiscal year 2003. v The assessed value of real and personal property both increased by 8% in the 2003 fiscal year. v Although the population increase in fiscal year 2003 was a modest .2% from the previous fiscal

year, the per capita income continues to grow in Escambia County. v Interest rates for earnings remain low and are conservatively budgeted for revenue purposes. During the current fiscal year, unreserved fund balance in the general fund increased to $17,091,937. An amount of $10,141,780 has been appropriated for spending in the 2004 fiscal year budget. Our healthy fund balance, combined with growth rates in the County, did not indicate the need for an increase in the ad valorem tax rates in Escambia County Government for fiscal year 2004. Escambia County continues to review various service fees and charges to meet the ongoing needs of infrastructure and services for County residents.

Governmental Business-typeActivities Activities Total

2003 2002 2003 2002 2003 2002Revenue Bonds:Sales tax revenue bonds $89,730,000 $51,430,000 $0 $0 $89,730,000 $51,430,000Road improvement bonds 6,055,000 8,795,000Tourist development bonds 16,700,000 0Capital improvement bonds 22,305,000 0

0 6,055,0004,650,000 16,700,000

0 22,305,000

8,795,0004,650,000

0

00

00

Total revenue bonds 134,790,000 60,225,000 4,650,000 134,790,000 64,875,000

Notes and loans:Capital improvement notes 41,747,000 47,974,872 0 829,128 41,747,000

FAC 0 850,000 0 O 0State of Florida Toll Fac. Note 469,167 500,000 0 0 469,167Line of Credit 0 0 1,184,362 1,579,149 1,184,362Capital Leases 6,388,609 399,306 0 0 6,388,609

48,804,000850,000500,000

1,579,149399,306

Total notes/loans/Ieases 48,604,776 49,724,178 1,184,362 2,408,277 49,789,138 52,132,455Total Long-Term Debt $183,394,776 $109,949,178 $1,184,362 $7,058,277 $184,579,138 $117,007,455

Escambia County currently holds a bond rating from Standard & Poor’s of A+ with a positive outlook. Thepositive outlook indicates that a rating is expected to improve with the County’s continued growth andsound fiscal practices. The County has met and complied with all technical and financial covenants in thebond contracts.

The Constitution of the State of Florida, Florida Statute 200.181 and Escambia County set no legal debtlimit. Additional information on Escambia County’s long-term debt can be found in the Notes of thisreport.

Economic Factors and Year 2004 Budgets and Rates

Factors considered in preparing Escambia County’s budget for the 2004 fiscal year included:

0:. Residential building permit activity increased 17% during fiscal year 2003.

0:. The assessed value of real and personal property both increased by 8% in the 2003 fiscal year.

0:. Although the population increase in fiscal year 2003 was a modest .2% from the previous fiscalyear, the per capita income continues to grow in Escambia County.

0:. Interest rates for earnings remain low and are conservatively budgeted for revenue purposes.

During the current fiscal year, unreserved fund balance in the general fund increased to $17,091,937. Anamount of $10,141,780 has been appropriated for spending in the 2004 fiscal year budget. Our healthyfund balance, combined with growth rates in the County, did not indicate the need for an increase in thead valorem tax rates in Escambia County Government for fiscal year 2004.

Escambia County continues to review various service fees and charges to meet the ongoing needs ofinfrastructure and services for County residents.

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Requests for Information. This financial report is designed to provide a general overview of Escambia County Government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information may be addressed to the Clerk of the Circuit Court, Finance Department, 223 Palafox Place, Pensacola, Florida 32501. The Clerk’s office may also be contacted through the Website address: www.clerk.co.escambia.fl.us/.

Requests for Information. This financial report is designed to provide a general overview of EscambiaCounty Government’s finances. Questions concerning any of the information provided in this report orrequests for additional financial information may be addressed to the Clerk of the Circuit Court, FinanceDepartment, 223 Palafox Place, Pensacola, Florida 32501. The Clerk’s office may also be contactedthrough the Website address: www.clerk.co.escambia.fl.us/.

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STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2003Primary Government Component Units

Governmental Business-type TotalActivities Activities Primary Government Total

ASSETSCash and cash equivalents $14,486,796 $39,375 $14,526,171 $2,576,621Equity in pooled cash and investments 127,934,522 11,912,622 139,847,144 0Investments 200,000 0 200,000 27,764,101Receivables (net of allowance for uncollectibles) 2,166,137 3,426,360 5,592,497 439,485Internal balances 2,587,564 (2,587,564) 0 0Due from other governmental units 11,103,315 1,112,676 12,215,991 790,450Inventory 985,292 186,347 1,171,639 0Other current assets 0 36,100 36,100 69,827Restricted assets 0 5,484,132 5,484,132 511,865Bank participation agreements 0 0 0 123,685Unamortized bond issuance costs 2,044,541 0 2,044,541 0Other assets 0 0 0 3,324,180Capital assets: Land and construction in progress non-depreciable 31,987,279 7,284,080 39,271,359 0 Depreciable (net) 378,549,100 37,017,905 415,567,005 11,009,410 Total assets 572,044,546 63,912,033 635,956,579 46,609,624

LIABILTIESVouchers payable 7,978,325 1,148,691 9,127,016 1,312,912Contracts payable 770,905 444,752 1,215,657 0Salaries and benefits payable 3,695,539 235,372 3,930,911 69,268Due to other governmental units 1,434,965 16,973 1,451,938 425,486Other current liabilities 2,697,182 1,776,486 4,473,668 691,432Payable from restricted assets 0 291,734 291,734 0Non-current liabilities: Due within one year: Notes and bonds payable 9,597,333 394,787 9,992,120 18,444 Capital leases 922,258 0 922,258 8,139 Interest payable 328,607 0 328,607 0 Compensated absences 3,983,567 22,203 4,005,770 308,393 Deferred revenues 0 0 0 195,333 Due in more than one year: Compensated absences 16,583,628 1,153,016 17,736,644 0 Notes and bonds payable 167,408,834 789,575 168,198,409 0 Capital leases 5,466,351 0 5,466,351 0 Unamortized bond premium 1,069,710 0 1,069,710 0 Landfill closure and postclosure care payable 0 8,697,544 8,697,544 0 Claims liabilities 16,951,375 0 16,951,375 0 Total liabilities 238,888,579 14,971,133 253,859,712 3,029,407

NET ASSETSInvested in capital assets (net of related debt) 259,610,770 40,298,499 299,909,269 10,982,827Restricted 33,979,794 0 33,979,794 24,113,406Unrestricted 39,565,403 8,642,401 48,207,804 8,483,984 Total net assets $333,155,967 $48,940,900 $382,096,867 $43,580,217

The accompanying notes are an integral part of the financial statements.

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STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2003

ASSETSCash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Internal balancesDue from other governmental unitsInventoryOther current assetsRestricted assetsBank participation agreementsUnamortized bond issuance costsOther assetsCapital assets:

Land and construction in progress non-depreciableDepreciable (net)

Total assets

LIABILTIESVouchers payableContracts payableSalaries and benefits payableDue to other governmental unitsOther current liabilitiesPayable from restricted assetsNon-current liabilities:

Due within one year:Notes and bonds payableCapital leasesInterest payableCompensated absencesDeferred revenues

Due in more than one year:Compensated absencesNotes and bonds payableCapital leasesUnamortized bond premium

Landfill closure and postclosure care payableClaims liabilities

Total liabilities

NET ASSETSInvested in capital assets (net of related debt)RestrictedUnrestricted

Total net assets

The accompanying notes are an integral part of thefinancial statements.

Primary Government Component UnitsGovernmental

ActivitiesBusiness-type

ActivitiesTotal

Primary Government Total

$14,486,796127,934,522

200,0002,166,1372,587,564

11,103,315985,292

000

2,044,5410

31,987,279378,549,100

$39,37511,912,622

03,426,360

(2,587,564)1,112,676

186,34736,100

5,484,132000

7,284,08037,017,905

$14,526,171139,847,144

200,0005,592,497

012,215,991

1,171,63936,100

5,484,1320

2,044,5410

39,271,359415,567,005

$2,576,6210

27,764,101439,485

0790,450

069,827

511,865123,685

03,324,180

011,009,410

572,044,546 63,912,033 635,956,579 46,609,624

7,978,325770,905

3,695,5391,434,9652,697,182

0

9,597,333922,258328,607

3,983,5670

16,583,628167,408,834

5,466,3511,069,710

016,951,375

1,148,691444,752235,372

16,9731,776,486

291,734

394,78700

22,2030

1,153,016789,575

00

8,697,5440

9,127,0161,215,6573,930,9111,451,9384,473,668

291,734

9,992,120922,258328,607

4,005,7700

17,736,644168,198,409

5,466,3511,069,7108,697,544

16,951 ,375

1,312,9120

69,268425,486691,432

0

18,4448,139

0308,393195,333

238,888,579 14,971,133 253,859,712

00000073,029,40

259,610,77033,979,79439,565,403

40,298,4990

8,642,401

299,909,26933,979,79448,207,804

10,982,82724,113,4068,483,984

$333,155,967 $48,940,900 $382,096,867 $43,580,217


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2003

Program RevenuesOperating Capital

Charges for Grants and Grants andExpenses Services Contributions Contributions

Function/Program ActivitiesGovernmental activities: General government $27,824,278 $27,193,180 $254,316 $938,768 Public safety 105,844,911 11,833,673 2,892,713 510,642 Physical environment 1,608,537 329,027 621,502 300,479 Transportation 52,160,788 1,300,496 4,260,026 1,157,060 Economic environment 11,194,640 182,370 2,953,738 4,385,876 Human services 4,340,688 0 1,162,626 0 Culture and recreation 4,187,822 162,940 302,137 177,354 Court related 4,650,983 2,449,366 25,625 0 Interest on long term debt 8,584,343 0 0 0 Total governmental activities 220,396,990 43,451,052 12,472,683 7,470,179

Business-type activities: Solid waste 6,702,610 9,137,234 0 0 Civic center 5,046,735 3,008,088 0 0 Industrial park 507,575 0 0 1,380,745 Other 14,294,176 13,518,697 21,097 0 Total business-type activities 26,551,096 25,664,019 21,097 1,380,745 Total primary government $246,948,086 $69,115,071 $12,493,780 $8,850,924

Component units: Civil Service Board $943,014 $977,390 $0 $0 Law Library Board 118,966 174,122 0 0 Santa Rosa Island Authority 21,197,122 5,038,553 0 40,118,321 Housing Finance Authority 691,286 469,933 0 0 Total component units $22,950,388 $6,659,998 $0 $40,118,321

General Revenues: Property taxes Tourist development taxes State shared revenue Sales taxes Gas taxes Unrestricted interest Rents and royalties Sale of assets Miscellaneous revenuesCapital contributionsTransfers - internal activitiesSpecial Items: Landfill Closure Estimates Payment to SRIA of bonds issued Total general revenues, special items, and transfers Change in net assetsNet assets - beginning (restated)Net assets - ending

The accompanying notes are an integral part of the financial statements

20


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2003

Function/Program ActivitiesExpenses

Program Revenues

Charges forServices

OperatingGrants and

Contributions

CapitalGrants and

Contributions

Governmental activities:General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long term debtTotal governmental activities

Business-type activities:Solid wasteCivic centerIndustrial parkOther

Total business-type activitiesTotal primary government

Component units:Civil Service BoardLaw Library BoardSanta Rosa Island AuthorityHousing Finance Authority

Total component units

The accompanying notes are an integral part of thefinancial statements

$27,824,278105,844,911

1,608,53752,160,78811,194,6404,340,6884,187,8224,650,9838,584,343

$27,193,1801 1 ,833,673

329,0271 ,300,496

182,3700

162,9402,449,366

0

$254,3162,892,713

621,5024,260,0262,953,7381,162,626

302,13725,625

0

$938,768510,642300,479

1 ,157,0604,385,876

0177,354

00

220,396,990 43,451 ,052 12,472,683 7,470,179

6,702,6105,046,735

507,57514,294,176

9,137,2343,008,088

013,518,697

000

21,097

00

1,380,7450

26,551,096 25,664,019 21,097 1,380,745$246,948,086

$943,014118,966

21,197,122691,286

$69,115,071

$977,390174,122

5,038,553469,933

$12,493,780 $8,850,924

$00

40,118,3210

$22,950,388

20

$6,659,998

General Revenues:Property taxesTourist development taxesState shared revenueSales taxesGas taxesUnrestricted interestRents and royaltiesSale of assetsMiscellaneous revenues

Capital contributionsTransfers - internal activitiesSpecial Items:

Landfill Closure Estimates

$40,118,321

Payment to SRIA of bonds issuedTotal general revenues, special items, and transfers

Change in net assetsNet assets - beginning (restated)Net assets - ending

Net (Expense) Revenue andChanges in Net Assets

Primary GovernmentGovernmental Business-type Component

Activities Activities Total Units

$561,986 $0 $561,986 $0(90,607,883) 0 (90,607,883) 0

(357,529) 0 (357,529) 0(45,443,206) 0 (45,443,206) 0(3,672,656) 0 (3,672,656) 0(3,178,062) 0 (3,178,062) 0(3,545,391) 0 (3,545,391) 0(2,175,992) 0 (2,175,992) 0(8,584,343) 0 (8,584,343) 0

(157,003,076) 0 (157,003,076) 0

0 2,434,624 2,434,624 00 (2,038,647) (2,038,647) 00 873,170 873,170 00 (754,382) (754,382) 00 514,765 514,765 0

(157,003,076) 514,765 (156,488,311) 0

0 0 0 34,3760 0 0 55,1560 0 0 23,959,7520 0 0 (221,353)0 0 0 $23,827,931

80,315,156 0 80,315,156 04,338,875 0 4,338,875 07,117,329 0 7,117,329 0

48,305,787 0 48,305,787 012,913,107 0 12,913,107 02,760,429 273,906 3,034,335 139,549

417,290 0 417,290 079,773 98,446 178,219 0

2,028,087 61,189 2,089,276 30,1092,009,981 662,649 2,672,630 0

(5,589,390) 5,589,390 0 0

0 10,367,898 10,367,898 0(32,000,000) 0 (32,000,000) 0122,696,424 17,053,478 139,749,902 169,658(34,306,652) 17,568,243 (16,738,409) 23,997,589367,462,619 31,372,657 398,835,276 19,582,628

$333,155,967 $48,940,900 $382,096,867 $43,580,217

21

Net (Expense) Revenue andChanges in Net Assets

Primaw GovernmentGovernmental

ActivitiesBusiness-type

Activities TotalComponent

Units

$561 ,986(90,607,883)

(357,529)(45,443,206)

(3,672,656)(3,178,062)(3,545,391 )(2,175,992)(8,584,343)

en $561 ,986(90,607,883)

(357,529)(45,443,206)

(3,672,656)(3,178,062)(3,545,391 )(2,175,992)(8,584,343)

en

(157,003,076) OO

OO

OO

OO

OO

(157,003,076) OO

OO

OO

OO

OO

2,434,624(2,038,647)

873,170(754,382)

2,434,624(2,038,647)

873,170(754,382)

514,765 514,765

CD

OO

OO

O

(157,003,07 ) 514,765 (156,488,311) OO

OO

OO

34,37655,156

23,959,752(221 ,353)

00

00

0

00

00

0

00

00

0

$23,827,931

80,315,1564,338,8757,117,329

48,305,78712,913,1072,760,429

417,29079,773

2,028,0872,009,981

(5,589,390)0

(32,000,000)

OO

OO

O

273,9060

98,44661 ,189

662,6495,589,390

10,367,8980

80,315,1564,338,8757,117,329

48,305,78712,913,1073,034,335

417,290178,219

2,089,2762,672,630

0

10,367,898(32,000,000)

122,696,424 17,053,478 139,749,902 169,658(34,306,652)367,462,619

17,568,24331,372,657

(16,738,409)398,835,276

23,997,58919,582,628

$333,155,967 $48,940,900 $382,096,867 $43,580,217

21


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2003 Transportation Capital Other Total

and Debt Improvement Governmental GovernmentalGeneral Drainage Service Program LOST Funds Funds

ASSETSCash and cash equivalents $6,116,160 $4,175,731 $0 $1,907,323 $0 $2,190,266 $14,389,480Equity in pooled cash and investments 16,264,402 2,648,718 8,186,593 37,579,175 34,554,429 17,510,878 116,744,195Investments 0 0 0 0 0 200,000 200,000Receivables (net of allowance for uncollectibles) 911,287 361 0 0 0 465,931 1,377,579Due from other funds 1,303,352 6,895 0 0 523 91,981 1,402,751Due from other governmental units 2,331,476 1,025,073 0 326,400 5,315,967 2,092,414 11,091,330Inventory 479,597 320,428 0 0 0 185,267 985,292Advance to other funds 259,389 0 0 0 134,148 0 393,537 Total assets $27,665,663 $8,177,206 $8,186,593 $39,812,898 $40,005,067 $22,736,737 $146,584,164

LIABILITIESVouchers payable $1,882,545 $2,003,692 $0 $802,352 $1,413,696 $1,605,958 $7,708,243Contracts payable 2,785 0 0 74,868 585,340 98,974 761,967Salaries and compensated absences payable 5,116,407 334,797 0 1,235 3,313 131,860 5,587,612Due to other funds 500,581 0 0 0 0 438,963 939,544Due to other governmental units 1,158,911 82,102 0 0 24,758 168,926 1,434,697Other current liabilities 1,080,612 15,264 0 0 0 825,881 1,921,757Long-term liabilities: 0 Advance from other funds 0 0 0 134,148 1,682,573 0 1,816,721 Total liabilities 9,741,841 2,435,855 0 1,012,603 3,709,680 3,270,562 20,170,541

FUND BALANCESReserved for encumbrances 92,899 175,142 0 15,973,748 6,552,008 1,620,575 24,414,372Reserved for advances to other funds 259,389 0 0 0 134,148 0 393,537Reserved for debt service 0 0 8,186,593 0 0 0 8,186,593Reserved for inventory 479,597 320,428 0 0 0 185,267 985,292Unreserved, reported in: General fund 17,091,937 0 0 0 0 0 17,091,937 Special revenue funds 0 5,245,781 0 0 0 15,671,404 20,917,185 Debt service 0 0 0 0 0 0 0 Capital projects 0 0 0 22,826,547 29,609,231 1,988,929 54,424,707 Grants 0 0 0 0 0 0 0 Total fund balances 17,923,822 5,741,351 8,186,593 38,800,295 36,295,387 19,466,175 126,413,623

Total liabilities and fund balances $27,665,663 $8,177,206 $8,186,593 $39,812,898 $40,005,067 $22,736,737 $146,584,164


22


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2003

ASSETSCash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventoryAdvance to other funds

Total assets

LIABILITIESVouchers payableContracts payableSalaries and compensated absences payableDue to other fundsDue to other governmental unitsOther current liabilitiesLong-term liabilities:Advance from other funds

Total liabilities

FUND BALANCESReserved for encumbrancesReserved for advances to other fundsReserved for debt serviceResen/ed for inventoryUnreserved, reported in:

General fundSpecial revenue fundsDebt serviceCapital projectsGrants

Total fund balances

Total liabilities and fund balances


General

$6,116,16016,264,402

0911,287

1,303,3522,331,476

479,597259,389

Transportationand

Drainage

$4,175,7312,648,718

0361

6,8951,025,073

320,4280

DebtService

$08,186,593

0

CapitalImprovement

Program

$1,907,32337,579,175

LOST

$034,554,429

00

5235,315,967

0134,148

OtherGovernmental

Funds

$2,190,26617,510,878

200,000465,931

91,9812,092,414

185,2670

TotalGovernmental

Funds

$14,389,480116,744,195

200,0001,377,5791,402,751

11,091,330985,292393,537

$27,665,663

$1,882,5452,785

5,116,407500,581

1,158,9111,080,612

0

$8,177,206

$2,003,6920

334,7970

82,10215,264

0

000003$8,186,59

650

00

00

00

$39,812,898

$802,35274,868

1,2350000

134,148

$40,005,067

$1,413,696585,340

3,3130

24,7580

1,682,573

$22,736,737

$1,605,95898,974

131,860438,963168,926825,881

0

$146,584,164

$7,708,243761,967

5,587,612939,544

1,434,6971,921,757

1,816,7219,741,841 2,435,855 1,012,603 3,709,680 3,270,562 20,170,541

92,899259,389

0479,597

17,091,9370000

175,14200

320,428

05,245,781

000

00

8,186,5930

15,973,748000

00

0

22,826,5470

6,552,008134,148

00

00

0

29,609,2310

1,620,57500

185,267

015,671,404

01,988,929

0

24,414,372393,537

8,186,593985,292

17,091,93720,917,185

054,424,707

017,923,822 5,741,351

0000038,186,59 38,800,295 36,295,387 19,466,175 126,413,623

$27,665,663 $8,177,206 $8,186,593 $39,812,898

22

$40,005,067 $22,736,737 $146,584,164


RECONCILIATION OF THE BALANCE SHEETTO THE STATEMENT OF NET ASSETSGOVERNMENTAL FUNDS


Fund balances - total governmental funds $126,413,623

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. The cost of the assets is $676,886,593 and the accumulated 410,512,940 depreciation is $266,373,653

Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds. Governmental bonds, notes and loans payable ($177,006,167) Compensated absences (18,640,369) Leases (6,388,609) Unamortized bond issuance costs 2,044,541 Unamortized original issue bond premium (1,069,710) ($201,060,314)

Interest payable in governmental funds is susceptable to full accrual on the entity-wide statements. (328,607)

Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service fund are reported with governmental activities. (2,381,675)

Net assets of governmental activities $333,155,967


23


RECONCILIATION OF THE BALANCE SHEETTO THE STATEMENT OF NET ASSETSGOVERNMENTAL FUNDS


Fund balances - total governmental funds

Amounts reported for governmental activities in thestatement of net assets are different because:

Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds.The cost of the assets is $676,886,593 and the accumulateddepreciation is $266,373,653

Long-term liabilities, including bonds payable are not due andpayable in the current period and therefore are not reportedin the governmental funds.

Governmental bonds, notes and loans payableCompensated absencesLeasesUnamortized bond issuance costsUnamortized original issue bond premium

Interest payable in governmental funds is susceptable tofull accrual on the entity-wide statements.

Internal service funds are used by management to charge the costsof certain activities to individual funds. The assets and liabilitiesof the internal service fund are reported with governmental activities.

Net assets of governmental activities


$126,413,623

410,512,940

($177,006,167)(18,640,369)

(6,388,609)2,044,541

(1,069,710) ($201,060,314)

(328,607)

(2,381,675)

W

23


STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2003 Transportation Capital Other Totaland Debt Improvement Governmental Governmental

General Drainage Service Program LOST Funds Funds

Revenues: Taxes $91,944,193 $6,612,220 $0 $0 $29,642,829 $5,893,953 $134,093,195 Licenses and permits 447,824 0 0 0 0 0 447,824 Intergovernmental 26,844,931 4,704,462 593,333 300,649 300,479 17,891,157 50,635,011 Charges for services 9,462,596 184,620 0 0 10,215 6,654,187 16,311,618 Fines and forfeitures 1,884,838 0 0 0 0 612,572 2,497,410 Investment income 510,292 43,899 125,271 952,513 490,608 311,888 2,434,471 Special assessments 865,748 587,010 0 0 0 6,894,892 8,347,650 Miscellaneous 4,967,233 160,861 354,340 0 15,011 960,349 6,457,794 Total revenues 136,927,655 12,293,072 1,072,944 1,253,162 30,459,142 39,218,998 221,224,973

Expenditures: Current: General government 54,933,527 0 0 0 0 2,756,700 57,690,227 Public safety 67,592,677 3,989,754 0 0 0 14,514,574 86,097,005 Physical environment 561,777 235,736 0 0 0 692,420 1,489,933 Transportation 14,905 14,424,590 0 0 0 9,177,441 23,616,936 Economic environment 180,645 0 0 0 0 10,188,566 10,369,211 Human services 2,737,956 0 0 0 0 1,042,434 3,780,390 Culture and recreation 1,927,475 0 0 0 0 320,304 2,247,779 Capital improvements 0 0 0 35,964,500 20,346,416 0 56,310,916 Debt service Principal retirement 92,536 0 10,516,833 0 0 0 10,609,369 Interest and fiscal charges 17,801 28,000 7,179,133 2,152,270 114,861 7,264 9,499,329 Total expenditures 128,059,299 18,678,080 17,695,966 38,116,770 20,461,277 38,699,703 261,711,095

Excess (deficiency) of revenue over (under) expenditures 8,868,356 (6,385,008) (16,623,022) (36,863,608) 9,997,865 519,295 (40,486,122)

Other financing sources (uses): Capital lease(s) issued 0 4,174,516 0 1,907,323 0 0 6,081,839 Bond(s) issued 0 0 0 123,253,235 0 6,779,357 130,032,592 Note proceeds 0 0 0 0 483,128 0 483,128 Proceeds from the sale of capital assets 0 0 0 0 4,351,106 0 4,351,106 Payments made to refund bonds 0 0 (53,857,245) 0 0 0 (53,857,245) Transfers in 2,403,444 4,468,358 66,866,617 766,825 0 1,943,234 76,448,478 Transfers out (9,371,974) (1,197,372) 0 (50,375,966) (9,269,675) (11,822,881) (82,037,868) Total other financing sources (uses) (6,968,530) 7,445,502 13,009,372 75,551,417 (4,435,441) (3,100,290) 81,502,030

Net change in fund balances 1,899,826 1,060,494 (3,613,650) 38,687,809 5,562,424 (2,580,995) 41,015,908

Fund balances at beginning of year 16,023,996 4,680,857 11,800,243 112,486 30,732,963 22,047,170 85,397,715Fund balances (deficit) at end of year $17,923,822 $5,741,351 $8,186,593 $38,800,295 $36,295,387 $19,466,175 $126,413,623


24


STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2003

Revenues:TaxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues

Expenditures:Current:

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreation

Capital improvementsDebt service

Principal retirementInterest and fiscal chargesTotal expenditures

Excess (deficiency) of revenue over (under)expenditures

Other financing sources (uses):Capital Iease(s) issuedBond(s) issuedNote proceedsProceeds from the sale of capital assetsPayments made to refund bondsTransfers inTransfers out

Total other financing sources (uses)

Net change in fund balances

Fund balances at beginning of yearFund balances (deficit) at end of year


General

$91,944,193447,824

26,844,9319,462,5961,884,838

510,292865,748

4,967,233

Transportationand

Drainage

$6,612,2200

4,704,462184,620

043,899

587,010160,861

DebtService

$00

593,33300

125,2710

354,340

CapitalImprovement

Program

$00

300,64900

952,51300

LOST

$29,642,8290

300,47910,215

0490,608

015,011

OtherGovernmental

Funds

$5,893,9530

17,891,1576,654,187

612,572311,888

6,894,892960,349

TotalGovernmental

Funds

$134,093,195447,824

50,635,01116,311,6182,497,4102,434,4718,347,6506,457,794

136,927,655 12,293,072 1,072,944 1,253,162 30,459,142 39,218,998 221,224,973

54,933,52767,592,677

561,77714,905

180,6452,737,9561,927,475

0

92,53617,801

03,989,754

235,73614,424,590

0000

028,000

OO

OO

OO

OO

10,516,8337,179,133

OO

OO

OO

O

35,964,500

02,152,270

0OOOOOO620,346,41

0114,861

2,756,70014,514,574

692,4209,177,441

10,188,5661,042,434

320,3040

07,264

57,690,22786,097,005

1,489,93323,616,93610,369,2113,780,3902,247,779

56,310,916

10,609,3699,499,329

128,059,299 18,678,080 17,695,966 38,116,770 20,461,277 38,699,703 261,711,095

8,868,356 (6,385,008) (16,623,022) (36,863,608) 9,997,865 519,295 (40,486,122)

OO

OO

O

2,403,444(9,371,974)

4,174,5160000

4,468,358(1,197,372)

00

0

0(53,857,245)66,866,617

0

1,907,323123,253,235

000

766,825(50,375,966)

00

483,1284,351,106

00

(9,269,675)

06,779,357

000

1,943,234(11,822,881)

6,081,839130,032,592

483,1284,351,106

(53,857,245)76,448,478

(82,037,868)(6,968,530) 7,445,502 13,009,372 75,551,417 (4,435,441) (3,100,290) 81,502,030

1,899,826 1,060,494 (3,613,650) 38,687,809 5,562,424 (2,580,995) 41,015,908

16,023,996 4,680,857 11,800,243 112,486 30,732,963 22,047,170 85,397,715$17,923,822 $5,741,351 $8,186,593

24

$38,800,295 $36,295,387 $19,466,175 $126,413,623


RECONCILIATION OF THE STATEMENTOF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESOF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds $41,015,908

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives: Expenditures for capital assets $34,718,739 Less current year depreciation (27,806,665) 6,912,074

Repayment of borrowed funds - principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net assets: Principal payments 10,609,369 Payments made to refund bonds 51,430,000 62,039,369

Governmental funds report new issues of debt as revenue. However, in the statement of activities, the issuance of debt is recorded as a long term liability as follows: Bonds/notes payable (129,403,128) Leases payable (6,081,839) (135,484,967)

Expenses and revenues related to the issuance of bonds is amortized over the life of the bonds: Bond issuance costs 2,044,541 Original issue premium/discount (1,069,710) 974,831

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Interest expense 897,185 Salary expense associated with compensated absences (2,079,274)

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net (expenses) revenue of the internal service fund is reported with governmental activities (3,885,061)

Loss on disposal of capital assets do not reduce financial resources of governmental funds. (2,355,591)

Receipts from the sale of assets do not increase financial resources of governmental funds. (4,351,107)

Donations of capital items increase financial resources of governmental funds. 2,009,981

Change in net assets of governmental activities ($34,306,652)


25


RECONCILIATION OF THE STATEMENTOF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESOF GOVERNMENT FUNDS TO THESTATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds

Amounts reported for governmental activities in thestatement of activities are different because:

Governmental funds report capital outlays as expenditures.However, in the statement of activities, the cost of those assetsis depreciated over their estimated useful lives:

Expenditures for capital assetsLess current year depreciation

Repayment of borrowed funds - principal is an expenditure ingovernmental funds, but the repayment reduces long—termliabilities in the statement of net assets:

Principal paymentsPayments made to refund bonds

Governmental funds report new issues of debt as revenue.However, in the statement of activities, the issuance of debt isrecorded as a long term liability as follows:

Bonds/notes payableLeases payable

Expenses and revenues related to the issuance of bonds is amortized overthe life of the bonds:

Bond issuance costsOriginal issue premium/discount

Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are notreported as expenditures in governmental funds:

Interest expenseSalary expense associated with compensated absences

Internal sen/ice funds are used by management to charge the costsof certain activities to individual funds. The net (expenses) revenueof the internal service fund is reported with governmental activities

Loss on disposal of capital assets do not reduce financial resources ofgovernmental funds.

Receipts from the sale of assets do not increase financial resources ofgovernmental funds.

Donations of capital items increase financial resources ofgovernmental funds.

Change in net assets of governmental activities


$34,718,739(27,806,665)

10,609,36951,430,000

(129,403,128)(6,081,839)

2,044,541(1,069,710)

$41,015,908

6,912,074

62,039,369

(135,484,967)

974,831

897,185(2,079,274)

(3,885,061)

(2,355,591)

(4,351,107)

2,009,981

($34,306,652)

25


GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL

FOR THE YEAR ENDED SEPTEMBER 30, 2003 Variance withFinal Budget

Original Final PositiveBudget Budget Actual (Negative)

Revenues: Taxes $93,760,691 $93,760,691 $91,944,193 ($1,816,498) Licenses and permits 556,374 556,374 447,824 (108,550) Intergovernmental 26,242,309 26,245,914 26,844,931 599,017 Charges for services 10,393,951 10,765,413 9,462,596 (1,302,817) Fines and forfeitures 1,962,226 1,962,226 1,884,838 (77,388) Investment income 2,021,000 2,021,000 510,292 (1,510,708) Special assessments 726,120 726,120 865,748 139,628 Miscellaneous 4,542,272 4,728,369 4,967,233 238,864 Total revenues 140,204,943 140,766,107 136,927,655 (3,838,452)

Expenditures: Current: General government 66,524,242 66,889,416 54,933,527 11,955,889 Public safety 68,304,148 68,838,196 67,592,677 1,245,519 Physical environment 557,488 564,688 561,777 2,911 Transportation 164,525 15,615 14,905 710 Economic environment 211,301 211,301 180,645 30,656 Human services 3,028,457 2,845,345 2,737,956 107,389 Culture and recreation 2,182,776 2,203,336 1,927,475 275,861 Debt service Principal retirement 2,759 2,759 92,536 (89,777) Interest and fiscal charges 12 12 17,801 (17,789) Total expenditures 140,975,708 141,570,668 128,059,299 13,511,369

Excess (deficiency) of revenue over (under) expenditures (770,765) (804,561) 8,868,356 9,672,917

Other financing sources (uses): Lease proceeds 0 0 0 0 Transfers in 2,295,720 2,325,376 2,403,444 78,068 Transfers out (11,202,634) (10,429,593) (9,371,974) 1,057,619 Total other financing sources (uses) (8,906,914) (8,104,217) (6,968,530) 1,135,687

Net change in fund balances (9,677,679) (8,908,778) 1,899,826 10,808,604

Fund balances at beginning of year 9,677,679 8,908,778 16,023,996 7,115,218Fund balances (deficit) at end of year $0 $0 $17,923,822 $17,923,822


26


GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt servicePrincipal retirementInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Lease proceedsTransfers inTransfers out





OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive(Negative)

$93,760,691556,374

26,242,30910,393,951

1,962,2262,021,000

726,1204,542,272

$93,760,691556,374

26,245,91410,765,413

1,962,2262,021,000

726,1204,728,369

$91,944,193447,824

26,844,9319,462,5961,884,838

510,292865,748

4,967,233

($1,816,498)(108,550)599,017

(1,302,817)(77,388)

(1,510,708)139,628238,864

140,204,943 140,766,107 136,927,655 (3,838,452)

66,524,24268,304,148

557,488164,525211,301

3,028,4572,182,776

2,75912

66,889,41668,838,196

564,68815,615

211,3012,845,3452,203,336

2,75912

54,933,52767,592,677

561,77714,905

180,6452,737,9561,927,475

92,53617,801

11,955,8891,245,519

2,911710

30,656107,389275,861

(89,777)(17,789)

140,975,708 141,570,668 128,059,299 13,511,369

(770,765)

02,295,720

(11,202,634)

(804,561)

02,325,376

(10,429,593)

8,868,356

02,403,444

(9,371,974)

9,672,917

078,068

1,057,619(8,906,914) (8,104,217) (6,968,530) 1,135,687

(9,677,679) (8,908,778) 1,899,826 10,808,604

9,677,679 8,908,778 16,023,996 7,115,218$0 $0 $17,923,822

26

$17,923,822


TRANSPORTATION AND DRAINAGESTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $6,885,258 $6,885,258 $6,612,220 ($273,038) Intergovernmental 4,683,982 4,717,955 4,704,462 (13,493) Charges for services 95,032 193,032 184,620 (8,412) Investment income 130,930 130,930 43,899 (87,031) Special assessments 434,534 448,610 587,010 138,400 Miscellaneous 2,160,634 2,181,663 160,861 (2,020,802) Total revenues 14,390,370 14,557,448 12,293,072 (2,264,376)

Expenditures: Current: Public safety 3,970,459 4,012,314 3,989,754 22,560 Physical environment 278,129 407,050 235,736 171,314 Transportation 16,084,491 21,486,696 14,424,590 7,062,106 Debt service Interest and fiscal charges 0 30,000 28,000 2,000 Total expenditures 20,333,079 25,936,060 18,678,080 7,257,980

Excess (deficiency) of revenue over (under) expenditures (5,942,709) (11,378,612) (6,385,008) 4,993,604

Other financing sources (uses): Capital lease(s) issued 0 4,174,516 4,174,516 0 Transfers in 4,693,104 4,628,044 4,468,358 (159,686) Transfers out (1,170,372) (1,170,372) (1,197,372) (27,000) Total other financing sources (uses) 3,522,732 7,632,188 7,445,502 (186,686)


Fund balances at beginning of year 2,419,977 3,746,424 4,680,857 934,433Fund balances (deficit) at end of year $0 $0 $5,741,351 $5,741,351


27


TRANSPORTATION AND DRAINAGESTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


OriginalBudget

Revenues:Taxes $6,885,258Intergovernmental 4,683,982Charges for services 95,032Investment income 130,930Special assessments 434,534Miscellaneous 2,160,634

Total revenues 14,390,370


Public safety 3,970,459Physical environment 278,129Transportation 16,084,491

Debt serviceInterest and fiscal charges 0Total expenditures 20,333,079

Excess (deficiency) of revenue over (under)expenditures (5,942,709)

Other financing sources (uses):Capital Iease(s) issued 0Transfers in 4,693,104Transfers out (1,170,372)

Total other financing sources (uses) 3,522,732

Net change in fund balances (2,419,977)

Fund balances at beginning of year 2,419,977Fund balances (deficit) at end of year $0


FinalBudget

$6,885,2584,717,955

193,032130,930448,610

2,181,66314,557,448

4,012,314407,050

21,486,696

30,00025,936,060

(11,378,612)

4,174,5164,628,044(1,170,372)7,632,188

(3,746,424)

3,746,424$0

27

Actual

$6,612,2204,704,462

184,62043,899

587,010160,861

12,293,072

3,989,754235,736

14,424,590

28,00018,678,080

(6,385,008)

4,174,5164,468,358(1,197,372)7,445,502

1,060,494

4,680,857$5,741,351


Positive(Negative)

($273,038)(13,493)

(8,412)(87,031)138,400

(2,020,802)(2,264,376)

22,560171,314

7,062,106

2,0007,257,980

4,993,604

0(159,686)(27,000)

(186,686)

4,806,918

934,433$5,741,351


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2003Business-type Activities

EconomicDevelopment Governmental

and ActivitiesASSETS Solid Waste Civic Center Industrial Other Non-major Total Internal Service FundCurrent assets: Cash and cash equivalents $1,525 $37,200 $0 $650 $39,375 $97,316 Equity in pooled cash and investments 6,653,798 1,345,924 243,672 3,669,228 11,912,622 11,190,327 Receivables (net of allowance for uncollectibles) 823,566 30,187 0 2,572,607 3,426,360 700,047 Due from other funds 0 0 0 0 0 19,965 Due from other governmental units 0 0 1,112,676 0 1,112,676 11,985 Inventory 0 44,689 0 141,658 186,347 0 Other current assets 9,680 26,210 0 210 36,100 0 Total current assets 7,488,569 1,484,210 1,356,348 6,384,353 16,713,480 12,019,640

Noncurrent assets: Restricted assets Cash and cash equivalents 2,999,139 1,298,627 1,053,797 132,569 5,484,132 0 Capital assets: Land and other non-depreciable assets 3,362,172 0 3,915,465 6,443 7,284,080 0 Capital assets (net of depreciation) 17,864,302 14,468,310 2,320,214 2,365,079 37,017,905 23,439 Intangible assets 0 0 0 0 0 0 Other assets 0 0 0 0 0 Advance to other funds 626,200 0 0 0 626,200 3,616,108 Total noncurrent assets 24,851,813 15,766,937 7,289,476 2,504,091 50,412,317 3,639,547 Total assets 32,340,382 17,251,147 8,645,824 8,888,444 67,125,797 15,659,187

LIABILITIESCurrent liabilities: Vouchers payable 696,585 157,956 248,038 46,112 1,148,691 270,082 Contracts payable 337,795 0 106,957 0 444,752 0 Salaries, benefits and compensated absences payable 83,335 0 0 174,240 257,575 8,938 Due to other funds 1,806 0 392,834 0 394,640 21 Due to other governmental units 5,862 0 3,760 7,351 16,973 268 Current portion of notes, loans, and bonds payable 394,787 0 0 0 394,787 0 Other current liabilities 2,022 669,786 1,104,678 0 1,776,486 710,038 Total current liabilities 1,522,192 827,742 1,856,267 227,703 4,433,904 989,347

Liabilities payable from restricted assets: Customer deposits 28,710 0 0 132,569 161,279 65,387 Landfill closure 91,784 0 0 0 91,784 0 Interest payable 0 0 38,671 0 38,671 0 Total payable from restricted assets 120,494 0 38,671 132,569 291,734 65,387

Non-current liabilities: Compensated absences 339,393 0 0 813,623 1,153,016 34,753 Advance from other funds 0 259,389 2,559,735 0 2,819,124 0 Notes, bonds, and loans payable 789,575 0 0 0 789,575 0 Landfill closure and postclosure care payable 8,697,544 0 0 0 8,697,544 0 Claims liabilities 0 0 0 0 0 16,951,375 Total non-current liabilities 9,826,512 259,389 2,559,735 813,623 13,459,259 16,986,128 Total liabilities 11,469,198 1,087,131 4,454,673 1,173,895 18,184,897 18,040,862

NET ASSETSInvested in capital assets, net of related debt 20,042,112 14,208,921 3,675,944 2,371,522 40,298,499 23,439Unrestricted 829,072 1,955,095 515,207 5,343,027 8,642,401 (2,405,114) Total net assets $20,871,184 $16,164,016 $4,191,151 $7,714,549 $48,940,900 ($2,381,675)


28


STATEMENT OF NET ASSETSPROPRIETARY FUNDS


ASSETSCurrent assets:

Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventoryOther current assets

Total current assets

Noncurrent assets:Restricted assetsCash and cash equivalents

Capital assets:Land and other non—depreciable assetsCapital assets (net of depreciation)

Intangible assetsOther assetsAdvance to other funds

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:Vouchers payableContracts payableSalaries, benefits and compensated absences payableDue to other fundsDue to other governmental unitsCurrent portion of notes, loans, and bonds payableOther current liabilitiesTotal current liabilities

Liabilities payable from restricted assets:Customer depositsLandfill closureInterest payable

Total payable from restricted assets

Non-current liabilities:Compensated absencesAdvance from other fundsNotes, bonds, and loans payableLandfill closure and postclosure care payableClaims liabilities

Total non-current liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debtUnrestricted

Total net assets

The accompanying notes are an integral partof the financial statements.

Business—type Activities

Solid Waste

$1,5256,653,798

823,566000

9,680

EconomicDevelopment

Civic Center

$37,2001,345,924

30,18700

44,68926,210

andIndustrial

$0243,672

00

1,112,67600

Other Non-ma'or

$6503,669,2282,572,607

00

141,658210

Total

$39,37511,912,6223,426,360

01,112,676

186,34736,100

GovernmentalActivities

Internal Service Fund

$97,31611,190,327

700,04719,96511,985

00

7,488,569 1,484,210 1,356,348 6,384,353 16,713,480 12,019,640

2,999,139

3,362,17217,864,302

00

626,200

1,298,627

014,468,310

000

1,053,797

3,915,4652,320,214

000

132,569

6,4432,365,079

000

5,484,132

7,284,08037,017,905

00

626,200

23,439

3,616,10824,851,813 15,766,937 7,289,476 2,504,091 50,412,317 3,639,54732,340,382 17,251,147 8,645,824 8,888,444 67,125,797 15,659,187

696,585337,795

83,3351,8065,862

394,7872,022

157,9560

00

00

669,786

248,038106,957

0392,834

3,7600

1,104,678

46,1120

174,2400

7,35100

1,148,691444,752257,575394,640

16,973394,787

1,776,486

270,0820

8,93821

2680

710,0381,522,192 827,742 1,856,267 227,703 4,433,904 989,347

28,71091,784

0 38,671

132,56900

161,27991,78438,671

65,387

120,494 00

00

38,671 132,569 291,734 65,387

339,3930

789,5758,697,544

0

0259,389

000

02,559,735

000

813,6230000

1,153,0162,819,124

789,5758,697,544

0

34,753000

16,951,3759,826,512 259,389 2,559,735 813,623 13,459,259 16,986,128

11,469,198 1,087,131 4,454,673 1,173,895 18,184,897 18,040,862

20,042,112829,072

14,208,9211,955,095

3,675,944515,207

2,371,5225,343,027

40,298,4998,642,401

23,439(2,405,114)

$20,871,184 $16,164,016

28

$4,191,151 $7,714,549 $48,940,900 ($2,381,675)


STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2003 Business-type Activities

EconomicDevelopment Governmental

and ActivitiesSolid Waste Civic Center Industrial Other Non-major Total Internal Service Fund

Operating revenues: Licenses and permits $1,426,110 $0 $0 $2,515,838 $3,941,948 $0 Intergovernmental 0 0 1,380,745 0 1,380,745 0 Charges for services 7,711,124 3,008,088 0 10,897,756 21,616,968 13,667,788 Fines and forfeitures 0 0 0 2,104 2,104 0 Miscellaneous income 13,020 12,255 0 138,913 164,188 67,915 Total operating revenues 9,150,254 3,020,343 1,380,745 13,554,611 27,105,953 13,735,703

Operating expenses: Personal services 2,555,185 0 0 7,920,295 10,475,480 374,424 Contractual services 724,993 3,168,019 35,178 326,028 4,254,218 3,088,644 Claims expense 0 0 0 0 0 3,934,179 Materials and supplies 435,220 94,500 2,952 468,917 1,001,589 99,329 Travel and vehicle costs 19,046 0 4,419 152,163 175,628 3,149 Depreciation 1,675,797 1,116,154 300,353 630,935 3,723,239 14,932 Bad debts 877 0 0 3,624,830 3,625,707 0 Memberships, dues and subscriptions 27,894 0 172 17,729 45,795 16,644 Insurance and bonds 208,990 87,927 0 107,739 404,656 9,720,774 Communications and freight services 32,470 0 546 105,718 138,734 6,280 Utilities 160,776 249,193 4,101 27,650 441,720 0 Maintenance 303,273 7,360 1,021 348,198 659,852 6,364 Rentals and leases 46,087 0 0 103,946 150,033 751 Amortization 0 93,736 0 0 93,736 0 Advertising and promotion 64,512 0 0 3,430 67,942 0 Aids to private organizations 0 0 28,152 0 28,152 0 Miscellaneous 433,236 29,331 1,303 456,598 920,468 757,187 Total operating expenses 6,688,356 4,846,220 378,197 14,294,176 26,206,949 18,022,657Operating income (loss) 2,461,898 (1,825,877) 1,002,548 (739,565) 899,004 (4,286,954)

Non-operating revenues (expenses): Interest income 162,727 44,533 6,956 59,690 273,906 401,893 Interest expense (14,254) (200,239) (129,378) 0 (343,871) 0 Other debt service costs 0 (276) 0 0 (276) 0 Gain (loss) on disposal of assets (1,783) (59,980) 236,653 (76,444) 98,446 0 Other income 0 0 0 21,097 21,097 0 Total non-operating revenues (expenses) 146,690 (215,962) 114,231 4,343 49,302 401,893

Income (loss) before contributions and transfers 2,608,588 (2,041,839) 1,116,779 (735,222) 948,306 (3,885,061)

Capital contributions 125,880 0 0 536,769 662,649 0 Transfers in 850,000 6,587,320 0 0 7,437,320 0 Transfers (out) (1,692,930) 0 0 (155,000) (1,847,930) 0 Total contributions and transfers (717,050) 6,587,320 0 381,769 6,252,039 0

Special item: Provision for closure and long-term care 10,367,898 0 0 0 10,367,898 0

Change in net assets 12,259,436 4,545,481 1,116,779 (353,453) 17,568,243 (3,885,061)

Net assets at beginning of year 8,611,748 11,618,535 3,074,372 8,068,002 31,372,657 1,503,386Net assets at ending of year $20,871,184 $16,164,016 $4,191,151 $7,714,549 $48,940,900 ($2,381,675)


29


STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSPROPRIETARY FUNDS


Operating revenues:Licenses and permitsIntergovernmentalCharges for servicesFines and forfeituresMiscellaneous income

Total operating revenues

Operating expenses:Personal servicesContractual servicesClaims expenseMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesAmortizationAdvertising and promotionAids to private organizationsMiscellaneous

Total operating expensesOperating income (loss)

Non-operating revenues (expenses):Interest incomeInterest expenseOther debt service costsGain (loss) on disposal of assetsOther income

Total non-operating revenues (expenses)

Income (loss) before contributions and transfers

Capital contributionsTransfers inTransfers (out)

Total contributions and transfers

Special item: Provision for closure and long-term care

Change in net assets

Net assets at beginning of yearNet assets at ending of year


Solid Waste

$1,426,1100

7,711,1240

13,020

Civic Center

EconomicDevelopment

andIndustrial

$0 $00 1 ,380,745

3,008,088 00 0

12,255 0

Other Non-ma'or

$2,515,8380

10,897,7562,104

138,913

Total

$3,941,9481,380,745

21,616,9682,104

164,188


Internal Service Func

$00

13,667,7880

67,9159,150,254 3,020,343 1,380,745 13,554,611 27,105,953 13,735,703

2,555,185724,993

0435,220

19,0461 ,675,797

87727,894

208,99032,470

160,776303,27346,087

064,512

0433,236

0 03,168,019 35,178

0 094,500 2,952

0 4,4191,116,154 300,353

0 00 172

87,927 00 546

249,193 4,1017,360 1,021

0 093,736 0

0 00 28,152

29,331 1,303

7,920,295326,028

0468,917152,163630,935

3,624,83017,729

107,739105,71827,650

348,198103,946

03,430

0456,598

10,475,4804,254,218

01 ,001 ,589

175,6283,723,2393,625,707

45,795404,656138,734441 ,720659,852150,03393,73667,94228,152

920,468

374,4243,088,6443,934,179

99,3293,149

14,9320

16,6449,720,774

6,2800

6,364751

000

757,1876,688,356 4,846,220 378,197 14,294,176 26,206,949 18,022,6572,461,898 (1,825,877) 1,002,548 (739,565) 899,004 (4,286,954)

162,727(14,254)

0(1,783)

0

44,533 6,956(200,239) (129,378)

(276) 0(59,980) 236,653

0 0

59,69000

(76,444)21,097

273,906(343,871 )

(276)98,44621 ,097

401,8930000

146,690 (215,962) 114,231 4,343 49,302 401,893

2,608,588 (2,041,839) 1,116,779 (735,222) 948,306 (3,885,061)

125,880850,000

(1,692,930)

06,587,320

0

536,7690

(155,000)

662,6497,437,320

(1 ,847,930)(717,050) 0

00

0

6,587,320 381,769 6,252,039 00

00

10,367,898 10,367,898

12,259,436 4,545,481 1,116,779 (353,453) 17,568,243 (3,885,061)

8,611,748 11,618,535 3,074,372 8,068,002 31,372,657 1,503,386$20,871,184


$16,164,016 $4,191,151

29

$7,714,549 $48,940,900 ($2,381,675)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2003 Business-type ActivitiesEconomic

Development Governmentaland Activities

Solid Waste Civic Center Industrial Other Non-major Total Internal Service FundCash flows from operating activities: Cash received from customers $9,204,613 $3,541,035 $1,575,203 $12,985,326 $27,306,177 $14,377,166 Cash payments to suppliers for goods and services (2,038,103) (3,696,001) (154,705) (5,774,291) (11,663,100) (14,063,640) Cash payments to employees for services (2,441,106) 0 0 (7,835,853) (10,276,959) (364,548) Other non-operating revenues (expenses) 0 0 0 121,899 121,899 0 Net cash provided by (used in) operating activities 4,725,404 (154,966) 1,420,498 (502,919) 5,488,017 (51,022)

Cash flows from noncapital financing activities: Transfers in 850,000 4,587,320 0 0 5,437,320 0 Transfers out (1,692,930) 0 0 (155,000) (1,847,930) 0 Principal (paid)/received on interfund advance 373,800 (64,847) (373,800) 0 (64,847) 927,100 Interest (paid)/received on interfund advance 13,366 (4,183) (129,378) 0 (120,195) 230,873 Net cash provided by (used in) noncapital financing activities (455,764) 4,518,290 (503,178) (155,000) 3,404,348 1,157,973

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (5,090,839) (279,337) (560,596) (45,502) (5,976,274) (1,145) Principal paid on revenue bonds, notes and lease purchase contracts (394,787) (5,425,625) 0 0 (5,820,412) 0 Interest paid on revenue bonds, notes and lease purchase contracts (14,254) (297,376) 0 0 (311,630) 0 Proceeds from sale of assets 0 0 588,800 1,395 590,195 0 Received from bond financing 0 2,000,000 0 0 2,000,000 0 Other debt service costs 0 (276) 0 0 (276) 0 Net cash used in capital and related financing activities (5,499,880) (4,002,614) 28,204 (44,107) (9,518,397) (1,145)

Cash flow from investing activities: Interest on investments 149,361 44,533 6,956 59,690 260,540 171,020 Net cash provided by investing activities 149,361 44,533 6,956 59,690 260,540 171,020

Net increase (decrease) in cash & cash equivalents (1,080,879) 405,243 952,480 (642,336) (365,492) 1,276,826

Cash and cash equivalents at beginning of year 10,735,341 2,276,508 344,989 4,444,783 17,801,621 10,010,817Cash and cash equivalents at end of year $9,654,462 $2,681,751 1,297,469$ $3,802,447 $17,436,129 $11,287,643

Non-cash investing, capital and financing activities Capital contributions $125,880 $0 $0 $536,769 $662,649 $0The accompanying notes are an integral part of the financial statements. (Continued)

30


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS


Cash flows from operating activities:Cash received from customersCash payments to suppliers for goods and servicesCash payments to employees for servicesOther non-operating revenues (expenses)

Net cash provided by (used in) operating activities

Cash flows from noncapital financing activities:Transfers inTransfers outPrincipal (paid)/received on interfund advanceInterest (paid)/received on interfund advance

Net cash provided by (used in) noncapital financing activities

Cash flows from capital and related financing activities:Acquisition and construction of capital assetsPrincipal paid on revenue bonds, notes and lease purchase contractsInterest paid on revenue bonds, notes and lease purchase contractsProceeds from sale of assetsReceived from bond financingOther debt service costs

Net cash used in capital and related financing activities

Cash flow from investing activities:Interest on investments

Net cash provided by investing activities

Net increase (decrease) in cash 8. cash equivalents

Cash and cash equivalents at beginning of yearCash and cash equivalents at end of year

Non-cash investing, capital and financing activitiesCapital contributions



Solid Waste

$9,204,613(2,038,103)(2,441,106)

0

EconomicDevelopment

andCivic Center Industrial Other Non-ma'or

$3,541,035 $1,575,203 $12,985,326(3,696,001) (154,705) (5,774,291)

0 0 (7,835,853)0 0 121,899

Total

$27,306,177(11,663,100)(10,276,959)

121,899



$14,377,166(14,063,640)

(364,548)0

4,725,404 (154,966) 1,420,498 (502,919) 5,488,017 (51,022)

850,000(1,692,930)

373,80013,366

4,587,320 0 00 0 (155,000)

(64,847) (373,800) 0(4,183) (129,378) 0

5,437,320(1,847,930)

(64,847)(120,195)

00

927,100230,873

(455,764) 4,518,290 (503,178) (155,000) 3,404,348 1,157,973

(5,090,839)(394,787)(14,254)

000

(279,337) (560,596) (45,502)(5,425,625) 0 0

(297,376) 0 00 588,800 1,395

2,000,000 0 0(276) 0 0

(5,976,274)(5,820,412)

(311,630)590,195

2,000,000(276)

(1,145)

(5,499,880) (4,002,614) 28,204 (44,107) (9,518,397)

000005(1,14 )

149,361 44,533 6,956 59,690 260,540 171,020149,361

(1,080,879)

10,735,341

44,533 6,956 59,690

405,243 952,480 (642,336)

2,276,508 344,989 4,444,783

260,540

(365,492)

17,801,621

171,020

1,276,826

10,010,817$9,654,462

$125,880

$2,681,751 $ 1,297,469 $3,802,447

$0 $0 $536,769

30

$17,436,129

$662,649

$11,287,643

$0(Continued)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS Business-type Activities(CONTINUED) EconomicFOR THE YEAR ENDED SEPTEMBER 30, 2003 Development Governmental

and ActivitiesSolid Waste Civic Center Industrial Other Non-major Total Internal Service Fund

Reconciliation of cash and cash equivalents at end of year to Statement of Net Assets: Current assets: Cash and cash equivalents $1,525 $37,200 $0 $650 $39,375 $97,316 Equity in pooled cash and investments 6,653,798 1,345,924 243,672 3,669,228 11,912,622 11,190,327 Restricted assets: Cash and cash equivalents 2,999,139 1,298,627 1,053,797 132,569 5,484,132 0 Total cash and cash equivalents at end of year $9,654,462 $2,681,751 1,297,469$ $3,802,447 $17,436,129 $11,287,643

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $2,461,898 ($1,825,877) $1,002,548 ($739,565) $899,004 ($4,286,954) Other non-operating revenues 0 0 0 796 796 0 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 1,675,797 1,116,154 300,353 630,935 3,723,239 14,932 Amortization 0 93,736 0 0 93,736 0 Provision for uncollectible accounts 877 0 0 3,624,830 3,625,707 0 (Increase) decrease in assets: Accounts receivable 74,033 26,141 15,203 (4,069,226) (3,953,849) (53,322) Due from other governments 0 0 (925,423) 0 (925,423) (11,671) Inventory 0 (11,928) 0 (6,068) (17,996) 0 Prepaid expense 0 (22,689) 0 1,801 (20,888) 1,998 Increase (decrease) in liabilities: Vouchers payable 482,346 (23,786) (80,621) (718) 377,221 (3,238) Salaries and benefits payable 23,157 0 0 33,204 56,361 2,115 Compensated absences 90,922 0 0 51,238 142,160 0 Accrued taxes payable 0 (1,269) 0 0 (1,269) 7,761 Deposits (20,551) 0 0 (5,587) (26,138) 9,078 Due to other governments 7,624 0 3,760 (24,559) (13,175) 271 Deferred revenue 0 494,552 1,104,678 0 1,599,230 706,456 Landfill closure and long-term care payable (70,699) 0 0 0 (70,699) 0 Claims payable 0 0 0 0 0 3,561,552

Net cash provided by (used in) operating activities $4,725,404 ($154,966) 1,420,498$ ($502,919) $5,488,017 ($51,022)


31


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS(CONTINUED)FOR THE YEAR ENDED SEPTEMBER 30, 2003

Reconciliation Of cash and cash equivalents at end Of year to Statement ofNet Assets:Current assets:

Cash and cash equivalentsEquity in pooled cash and investments

Restricted assets:Cash and cash equivalents

Total cash and cash equivalents at end of year

Reconciliation Of operating income (loss) to net cash provided by(used in) operating activities:

Operating income (loss)Other non-Operating revenuesAdjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:DepreciationAmortizationProvision for uncollectible accounts

(Increase) decrease in assets:Accounts receivableDue from other governmentsInventoryPrepaid expense

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesAccrued taxes payableDepositsDue to other governmentsDeferred revenueLandfill closure and long-term care payableClaims payable

Net cash provided by (used in) Operating activities



Solid Waste

$1,5256,653,798

2,999,139

Civic Center

$37,2001,345,924

1,298,627

EconomicDevelopment

andIndustrial

$0243,672

1,053,797

Other Non-ma'Or

$6503,669,228

132,569

Total

$39,37511,912,622

5,484,132



$97,31611,190,327

0$9,654,462

$2,461,8980

1,675,7970

877

74,0330O0

482,34623,15790,922

0(20,551)

7,6240

(70,699)0

$2,681,751

($1,825,877)0

1,116,15493,736

0

26,1410

(11,928)(22,689)

(23,786)

$ 1,297,469

$1,002,5480

300,35300

15,203(925,423)

$3,802,447

($739,565)796

630,9350

3,624,830

(4,069,226)0

(6,068)1,801

(718)33,20451,238

0(5,587)

(24,559)000

$17,436,129

$899,004796

3,723,23993,736

3,625,707

(3,953,849)(925,423)

(17,996)(20,888)

377,22156,361

142,160(1,269)

(26,138)(13,175)

1,599,230(70,699)

0

$11,287,643

($4,286,954)0

14,93200

(53,322)(11,671)

01,998

(3,238)2,115

07,7619,078

271706,456

03,561,552

$4,725,404 ($154,966)

31

$ 1,420,498 ($502,919) $5,488,017 ($51,022)


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2003

TotalAssets Agency Funds

Cash and cash equivalents $5,961,724Receivables (net of allowance for uncollectibles) 59,702Due from other funds 432,563Due from other governments 508 Total assets $6,454,497

Liabilities

Payable to others $889,692Due to other funds 521,074Due to other governmental units 2,647,567Other current liabilities 2,396,164 Total liabilities $6,454,497


32


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2003

TotalAssets Agency Funds

Cash and cash equivalents $5,961,724Receivables (net of allowance for uncollectibles) 59,702Due from other funds 432,563Due from other governments 508

Total assets $6,454,497

Liabilities

Payable to others $889,692Due to other funds 521,074Due to other governmental units 2,647,567Other current liabilities 2,396,164

Total liabilities $6,454,497


32


STATEMENT OF NET ASSETSCOMPONENT UNITS


Governmental Activities Business-Type ActivitiesTotal

Escambia Governmental County Escambia County and

Civil Service Law Library Santa Rosa Housing Business-Type ASSETS Board Board Island Authority Finance Authority ActivitiesCurrent assets: Cash and cash equivalents $168,092 $26,025 $2,229,680 $152,824 $2,576,621 Investments 0 76,534 25,095,930 2,591,637 27,764,101 Receivables (net of allowance for uncollectibles) 12,064 1,627 335,097 90,697 439,485 Due from other governmental units 0 14,372 89,063 687,015 790,450 Other current assets 0 0 42,347 27,480 69,827 Total current assets 180,156 118,558 27,792,117 3,549,653 31,640,484

Noncurrent assets: Restricted assets Cash and cash equivalents 0 0 511,865 0 511,865 Capital assets: Capital assets (net of depreciation) 0 1,063,525 9,505,748 440,137 11,009,410 Supplemented mortgage loans 0 0 0 2,761,799 2,761,799 Bank participation agreements 0 0 0 123,685 123,685 Other noncurrent assets 0 0 562,381 0 562,381 Total noncurrent assets 0 1,063,525 10,579,994 3,325,621 14,969,140 Total assets 180,156 1,182,083 38,372,111 6,875,274 46,609,624

LIABILITIESCurrent liabilities: Vouchers payable 3,230 5,622 1,241,864 62,196 1,312,912 Salaries, benefits and compensated absences payable 16,061 5,950 47,257 0 69,268 Due to other governmental units 695 0 424,791 0 425,486 Current portion of notes, loans, and bonds payable 0 0 18,444 0 18,444 Other current liabilities 0 0 691,432 0 691,432 Total current liabilities 19,986 11,572 2,423,788 62,196 2,517,542

Non-current liabilities: Compensated absences 124,565 0 183,828 0 308,393 Leases payable 0 8,139 0 8,139 Deferred revenues 0 0 195,333 0 195,333 Total non-current liabilities 124,565 0 387,300 0 511,865 Total liabilities 144,551 11,572 2,811,088 62,196 3,029,407

NET ASSETSInvested in capital assets, net of related debt 0 1,063,525 9,479,165 440,137 10,982,827Restricted net assets 0 23,718,623 394,783 24,113,406Unrestricted net assets 35,605 106,986 2,363,235 5,978,158 8,483,984 Total net assets $35,605 $1,170,511 $35,561,023 $6,813,078 $43,580,217


33


STATEMENT OF NET ASSETSCOMPONENT UNITS



Cash and cash equivalentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other governmental unitsOther current assets


Noncurrent assets:Restricted assets

Cash and cash equivalentsCapital assets:

Capital assets (net of depreciation)Supplemented mortgage loansBank participation agreementsOther noncurrent assets

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:Vouchers payableSalaries, benefits and compensated absences payableDue to other governmental unitsCurrent portion of notes, loans, and bonds payableOther current liabilitiesTotal current liabilities

Non-current liabilities:Compensated absencesLeases payableDeferred revenues

Total non-current liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debt

Restricted net assetsUnrestricted net assets

Total net assets


Governmental Activities Business-Type Activities

Civil ServiceBoard

EscambiaCounty

Law LibraryBoard

Santa RosaIsland Authority Finance Authority

Escambia CountyHousing

TotalGovernmental

andBusiness-Type

Activities

$168,0920

12,06400

$26,02576,534

1,62714,372

0

$2,229,68025,095,930

335,09789,06342,347

$152,8242,591,637

90,697687,015

27,480

$2,576,62127,764,101

439,485790,45069,827

180,156 118,558 27,792,117 3,549,653 31,640,484

1,063,525000

511,865

9,505,74800

562,381

440,1372,761,799

123,6850

511,865

11,009,4102,761 ,799

123,685562,381

OO

OO

O

1,063,525 10,579,994 3,325,621 14,969,140180,156 1,182,083 38,372,111 6,875,274 46,609,624

3,23016,061

695

5,6225,950

1,241,86447,257

424,79118,444

691,432

1,312,91269,268

425,48618,444

691,43219,986 11,572 2,423,788 2,517,542

124,565

0

183,8288,139

195,333

00 308,393

8,139195,333

124,565 00

00

387,300 00

511,865144,551 11,572 2,811,088 62,196 3,029,407

35,605

1,063,525

106,986

9,479,16523,718,6232,363,235

440,137394,783

5,978,158

10,982,82724,113,4068,483,984

$35,605 $1,170,511

33

$35,561,023 $6,813,078 $43,580,217


STATEMENT OF ACTIVITIESCOMPONENT UNITS

FOR THE YEAR ENDED SEPTEMBER 30, 2003 Program Revenues

Operating CapitalCharges for Grants and Grants and

Expenses Services Contributions ContributionsFunction/Program ActivitiesGovernmental Activities: Civil Service Board $943,014 $977,390 $0 $0 Escambia County Law Library 118,966 174,122 0 0 Total Governmental activities 1,061,980 1,151,512 0 0

Business-type activities: Santa Rosa Island Authority 21,197,122 5,038,553 0 40,118,321 Housing Finance Authority 691,286 469,933 0 0 Total business-type activities 21,888,408 5,508,486 0 40,118,321 Total component units $22,950,388 $6,659,998 $0 $40,118,321

General RevenuesInvestment earningsMiscellaneousSale of assets Total general revenues Change in net assetsNet assets - beginning (restated)Net assets - ending


34


STATEMENT OF ACTIVITIESCOMPONENT UNITS


Function/Program ActivitiesGovernmental Activities:

Civil Service BoardEscambia County Law Library

Total Governmental activities

Business-type activities:Santa Rosa Island AuthorityHousing Finance AuthorityTotal business-type activitiesTotal component units

Expenses

$943,014118,966

Program Revenues

OperatingCharges for Grants and

Services Contributions

$977,390 $0174,122 0

CapitalGrants and

Contributions

$00

1,061,980

21,197,122691,286

1,151,512 0

5,038,553 0469,933 0

0

40,118,3210

21,888,408 5,508,486 0 40,118,321$22,950,388


34

$6,659,998 $0

General RevenuesInvestment earningsMiscellaneousSale of assets

Total general revenuesChange in net assets

Net assets - beginning (restated)Net assets - ending

$40,118,321

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities Business-type ActivitiesCivil Service Law Santa Rosa Housing Finance

Board Library Island Authority Authority Totals

$34,376 $0 $0 $0 $34,3760 55,156 0 0 55,156

34,376 55,156 0 0 89,532

0 0 23,959,752 0 23,959,7520 0 0 (221,353) (221,353)0 0 23,959,752 (221,353) 23,738,399

34,376 55,156 23,959,752 (221,353) 23,827,931

3,882 1,413 29,561 104,693 139,54929,949 160 0 0 30,109

0 0 0 0 033,831 1,573 29,561 104,693 169,65868,207 56,729 23,989,313 (116,660) 23,997,589

(32,602) 1,113,782 11,571,710 6,929,738 19,582,628$35,605 $1,170,511 $35,561,023 $6,813,078 $43,580,217

35

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities Business-type ActivitiesCivil Service

BoardLaw

LibrarySanta Rosa

Island AuthorityHousing Finance

Authority Totals

$34,3760

$055,156

$00

$0 $34,37655,156

34,376 55,156 0

23,959,7520

0(221,353)

89,532

23,959,752(221,353)

23,959,752 (221,353) 23,738,39934,376 55,156 23,959,752 (221,353) 23,827,931

3,88229,949

0

1,413160

0

29,56100

104,69300

139,54930,109

033,831 1,573 29,561 104,693 169,65868,207

(32,602)56,729

1,113,78223,989,31311,571,710

(116,660)6,929,738

23,997,58919,582,628

$35,605 $1,170,511 $35,561,023 $6,813,078

35

$43,580,217

NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS


NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2003

36

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Escambia County, Florida (the County) is a political subdivision of the State of Florida created pursuant to Chapter 7 of the Florida Statutes. The County is governed by a five member Board of County Commissioners (the Board), elected from single-member districts. The Board has no powers other than those expressly vested in it by State Statute and their governmental powers cannot be delegated. The Board appoints an administrator to administer all policies emanating from its statutory powers and authority. In addition to the Board, there are five elected Constitutional Officers, pursuant to Article 8, Section 1(d), of the Constitution of the State of Florida: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections. The accounting policies of the County conform to accounting principles generally accepted in the United States (US) as applicable to governments. The following is a summary of the more significant accounting policies. A. Financial Reporting Entity These combined financial statements include the operations of the Board of County Commissioners, Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections and those separately administered organizations for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government operations. Discretely presented component units are reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the government. Blended Component Units Community Redevelopment Agency (CRA) – In 1995, the Board of County Commissioners adopted Ordinance No. 95-6 which established the Community Redevelopment Agency (CRA) of Escambia County pursuant to “The Community Redevelopment Act of 1969”. The Board serves as the CRA Board and has all rights, powers, duties, privileges and immunities authorized by the Act. The CRA is reported as a special revenue fund. Five redevelopment areas are included under the CRA jurisdiction. Discretely Presented Component Units Governmental Fund Type: Escambia County Civil Service Board – The Escambia County Civil Service Board (CSB), established by the provisions of Chapter 83-405 Laws of Florida, is responsible for the administration of the career civil service system for certain employees of Escambia County and the Escambia County Utilities Authority. The governing body is not substantively the same as that of Escambia County. The Board consists of five (5) members, appointed by the Governor to serve four (4) year terms. Although the CSB is a separate legal entity that does not operate for the exclusive use of Escambia County, the CSB is fiscally dependent on Escambia County. Therefore, the operations of the CSB are reported as a discrete component unit in this report. Separate financial statements for the CSB can be obtained at 3300 North Pace Blvd., Ste. 172, Pensacola, Florida 32505.


NOTES TO COMBINED FINANCIAL STATEMENTSSEPTEMBER 30, 2003

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Escambia County, Florida (the County) is a political subdivision of the State of Florida created pursuant toChapter 7 of the Florida Statutes. The County is governed by a five member Board of CountyCommissioners (the Board), elected from single-member districts. The Board has no powers other thanthose expressly vested in it by State Statute and their governmental powers cannot be delegated. TheBoard appoints an administrator to administer all policies emanating from its statutory powers andauthority. In addition to the Board, there are five elected Constitutional Officers, pursuant to Article 8,Section 1(d), of the Constitution of the State of Florida: Clerk of the Circuit Court, Sheriff, Tax Collector,Property Appraiser, and Supervisor of Elections.

The accounting policies of the County conform to accounting principles generally accepted in the UnitedStates (US) as applicable to governments. The following is a summary of the more significant accountingpolicies.

A. Financial Reporting Entity

These combined financial statements include the operations of the Board of County Commissioners,Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections and thoseseparately administered organizations for which the government is considered to be financiallyaccountable. Blended component units, although legally separate entities, are, in substance, part of thegovernment operations. Discretely presented component units are reported in a separate column in thegovernment-wide financial statements to emphasize that they are legally separate from the government.

Blended Component Units

Community Redevelopment Agency (CRA) — In 1995, the Board of County Commissioners adoptedOrdinance No. 95-6 which established the Community Redevelopment Agency (CRA) of EscambiaCounty pursuant to “The Community Redevelopment Act of 1969“. The Board serves as the CRA Boardand has all rights, powers, duties, privileges and immunities authorized by the Act. The CRA is reportedas a special revenue fund. Five redevelopment areas are included under the CRA jurisdiction.

Discretely Presented Component Units

Governmental Fund Type:

Escambia County Civil Service Board — The Escambia County Civil Service Board (CSB), establishedby the provisions of Chapter 83-405 Laws of Florida, is responsible for the administration of the careercivil service system for certain employees of Escambia County and the Escambia County UtilitiesAuthority. The governing body is not substantively the same as that of Escambia County. The Boardconsists of five (5) members, appointed by the Governor to serve four (4) year terms. Although the CSBis a separate legal entity that does not operate for the exclusive use of Escambia County, the CSB isfiscally dependent on Escambia County. Therefore, the operations of the CSB are reported as a discretecomponent unit in this report. Separate financial statements for the CSB can be obtained at 3300 NorthPace Blvd., Ste. 172, Pensacola, Florida 32505.

36


NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2003

37

Escambia County Law Library Board – The Escambia County Law Library Board, created under Special Act, Chapter 69-1048, Laws of Florida, provides for the maintenance of a central law library for the use of citizens, county officials, judges and officers of the courts of Escambia County. The operations of the Law Library Board are funded by collection of fees by the Clerk of the Circuit Court on civil cases filed in the courts in addition to other costs provided by law. The Law Library Board is composed of two (2) circuit judges, two (2) county judges and one (1) lawyer appointed by the local bar association. The operations of the Law Library are reported in the Law Library Fund, a special revenue fund, as a discrete component unit. Financial statements for the Escambia County Law Library Board can be obtained at 190 Governmental Center, Pensacola, Florida 32502-5773. Proprietary Fund Type: Santa Rosa Island Authority (SRIA) – The Santa Rosa Island Authority (SRIA) was established by the provisions of Chapter 24-500, Laws of Florida, Special Acts of 1947, as amended. The County appoints five (5) members of the Authority’s six (6) member Board, and one (1) member is elected by the eligible voters who are full time residents of the Island. The County approves the Authority’s budget and issuance of debt. The County has veto power over decisions of the Authority. The SRIA serves as the County’s leasing agent for property on Santa Rosa Island owned by the County. The operations of SRIA are reported in the SRIA Fund, a discrete component unit in this report. Financial statements for the SRIA can be obtained at 1 Via Deluna, Pensacola Beach, Florida 32561. Escambia County Housing Finance Authority – The Escambia County Housing Finance Authority (HFA) was created in 1982 by Ordinance No. 80-12 pursuant to Chapter 78-89, Laws of Florida codified as Chapter 159, Part IV, Section 159.601 through 159.23. The County appoints five (5) members of the HFA and must approve by resolution any rules or regulations, the issuance of revenue bonds and all contracts and agreements. The Escambia County HFA and the County are not substantially the same. The HFA does not provide services almost entirely for the County. Therefore, the operations of the Escambia County HFA are reported as a discrete component unit in this report. Financial statements for the Escambia County HFA can be obtained at 25 West Cedar Street, Suite 530, Pensacola, Florida 32502-5945. Because these component units have been reported as a part of the County, there are limited instances where special note references or separation will be required. If no separate note reference or categorization is made, the user should assume that information presented is equally applicable. Joint Ventures – As defined in GASB Statement Number 14, a joint venture is a separate legal entity or other organization that results from a contractual arrangement (or interlocal agreement) and that is owned, operated or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain (a) an on-going financial interest or (b) an on-going financial responsibility. The County participates and provides financial support to the following nonequity joint ventures:

Human Relations Commission (HRC) – The Commission was created by an Interlocal Agreement between Escambia County and the City of Pensacola in 1978, pursuant to Florida Statutes, Chapter 163.01, for the purpose of being “responsible for the promotion of fair treatment and equal opportunity to all citizens of the local community.” The Commission is composed of fourteen (14) members; seven (7) selected by the County and seven (7) selected by the City of Pensacola. The duration of this agreement is for a period of two (2) years, with a renewal provision. The County does not control budgeting or financing for the Commission. Separate financial statements are available from the Commission at 29 South Spring St., Pensacola, Florida 32501.


NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)SEPTEMBER 30, 2003

Escambia County Law Library Board — The Escambia County Law Library Board, created underSpecial Act, Chapter 69-1048, Laws of Florida, provides for the maintenance of a central law library forthe use of citizens, county officials, judges and officers of the courts of Escambia County. The operationsof the Law Library Board are funded by collection of fees by the Clerk of the Circuit Court on civil casesfiled in the courts in addition to other costs provided by law. The Law Library Board is composed of two(2) circuit judges, two (2) county judges and one (1) lawyer appointed by the local bar association. Theoperations of the Law Library are reported in the Law Library Fund, a special revenue fund, as a discretecomponent unit. Financial statements for the Escambia County Law Library Board can be obtained at190 Governmental Center, Pensacola, Florida 32502-5773.

Proprietary Fund Type:

Santa Rosa Island Authority (SRIA) — The Santa Rosa Island Authority (SRIA) was established by theprovisions of Chapter 24-500, Laws of Florida, Special Acts of 1947, as amended. The County appointsfive (5) members of the Authority’s six (6) member Board, and one (1) member is elected by the eligiblevoters who are full time residents of the Island. The County approves the Authority’s budget andissuance of debt. The County has veto power over decisions of the Authority. The SRIA serves as theCounty’s leasing agent for property on Santa Rosa Island owned by the County. The operations of SRIAare reported in the SRIA Fund, a discrete component unit in this report. Financial statements for theSRIA can be obtained at 1 Via Deluna, Pensacola Beach, Florida 32561.

Escambia County Housing Finance Authority — The Escambia County Housing Finance Authority(HFA) was created in 1982 by Ordinance No. 80-12 pursuant to Chapter 78-89, Laws of Florida codifiedas Chapter 159, Part IV, Section 159.601 through 159.23. The County appoints five (5) members of theHFA and must approve ty resolution any rules or regulations, the issuance of revenue bonds and allcontracts and agreements. The Escambia County HFA and the County are not substantially the same.The HFA does not provide services almost entirely for the County. Therefore, the operations of theEscambia County HFA are reported as a discrete component unit in this report. Financial statements forthe Escambia County HFA can be obtained at 25 West Cedar Street, Suite 530, Pensacola, Florida32502-5945.

Because these component units have been reported as a part of the County, there are limited instanceswhere special note references or separation will be required. If no separate note reference orcategorization is made, the user should assume that information presented is equally applicable.

Joint Ventures— As defined in GASB Statement Number 14, a joint venture is a separate legal entity orother organization that results from a contractual arrangement (or interlocal agreement) and that isowned, operated or governed by two or more participants as a separate and specific activity subject tojoint control in which the participants retain (a) an on—going financial interest or (b) an on—going financialresponsibility. The County participates and provides financial support to the following nonequity jointventures:

Human Relations Commission (HRC) — The Commission was created by an lnterlocalAgreement between Escambia County and the City of Pensacola in 1978, pursuant to FloridaStatutes, Chapter 163.01, for the purpose of being “responsible for the promotion of fair treatmentand equal opportunity to all citizens of the local community.” The Commission is composed offourteen (14) members; seven (7) selected by the County and seven (7) selected by the City ofPensacola. The diration of this agreement is for a period of two (2) years, with a renewalprovision. The County does not control budgeting or financing for the Commission. Separatefinancial statements are available from the Commission at 29 South Spring St., Pensacola,Florida 32501.

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Pensacola – Escambia Governmental Center Authority (PEGCA) – This Authority was created in 1969 by Chapter 69-1049, Laws of Florida, as amended in 1971 by Chapter 71-631, for the purpose of acquiring, constructing, improving, operating, and maintaining facilities for occupancy by the City of Pensacola, the County, their agencies and departments and other governmental agencies and departments. The Authority consists of a five (5) member Board. Two (2) members are appointed by the Board of County Commissioners, two (2) members are appointed by the City Council and one (1) member is appointed by the other four (4) members of the Authority. The Authority prepares budgets which are subject to the approval of the City and the County. Separate financial statements are available from the Authority at 15 W. Main Street, Pensacola, FL 32502-5927. Pensacola – Escambia County Promotion and Development Commission (PEDC) – This Commission was created in 1967 by Chapter 67-1365, Laws of Florida, amended in 1980 by Chapter 80-579, to promote and develop tourism and industry in Escambia County and in the City of Pensacola. The nine (9) member Commission consists of two (2) members of the Pensacola City Council, two (2) members of the Escambia County Commission, one (1) member of the Century City Council, the President of the Chamber of Commerce (1), one (1) representative of the Committee of 100 or the Tourist Advisory Council, one (1) at-large member appointed by the Pensacola City Council and one (1) at-large member appointed by the Escambia County Commission. The County and the City of Pensacola each contribute funds annually for the operation and maintenance of the Commission, but neither has control of the budget or finances of the Commission. The Commission has no outstanding debt. Separate financial statements are available from the Pensacola – Escambia County Promotion and Development Commission at 117 West Garden Street, Pensacola, Florida 32593-0550.

Summary financial statements as of September 30, 2003 for the joint ventures are as follows: BALANCE SHEET SEPTEMBER 30, 2003 PEGCA HRC PEDC

Assets and other debits $35,093 $70,597 $402,343

Liabilities $0 $69,175 $0 Fund equity and other credits Investment in general fixed assets 400 34,720 0 Reserved for restricted assets 1,275 0 171,342 Reserved for debt service 0 0 0 Reserved for expenditures 6,274 0 0

Unreserved 27,144 (33,298) 231,001 Total fund equity 35,093 1,422 402,343

Total liabilities and fund equity $35,093 $70,597 $402,343



Pensacola — Escambia Governmental Center Authority (PEGCA) — This Authority wascreated in 1969 by Chapter 69-1049, Laws of Florida, as amended in 1971 by Chapter 71-631,for the purpose of acquiring, constructing, improving, operating, and maintaining facilities foroccupancy by the City of Pensacola, the County, their agencies and departments and othergovernmental agencies and departments. The Authority consists of a five (5) member Board.Two (2) members are appointed by the Board of County Commissioners, two (2) members areappointed by the City Council and one (1) member is appointed by the other four (4) members ofthe Authority. The Authority prepares budgets which are subject to the approval of the City andthe County. Separate financial statements are available from the Authority at 15 W. Main Street,Pensacola, FL 32502-5927.

Pensacola — Escambia County Promotion and Development Commission (PEDC) — ThisCommission was created in 1967 by Chapter 67-1365, Laws of Florida, amended in 1980 byChapter 80-579, to promote and develop tourism and industry in Escambia County and in the Cityof Pensacola. The nine (9) member Commission consists of two (2) members of the PensacolaCity Council, two (2) members of the Escambia County Commission, one (1) member of theCentury City Council, the President of the Chamber of Commerce (1), one (1) representative ofthe Committee of 100 or the Tourist Advisory Council, one (1) at-Iarge member appointed by thePensacola City Council and one (1) at-Iarge member appointed by the Escambia CountyCommission. The County and the City of Pensacola each contribute funds annually for theoperation and maintenance of the Commission, but neither has control of the budget or financesof the Commission. The Commission has no outstanding debt. Separate financial statementsare available from the Pensacola — Escambia County Promotion and Development Commissionat 117 West Garden Street, Pensacola, Florida 32593-0550.

Summary financial statements as of September 30, 2003 for the joint ventures are as follows:

BALANCE SHEETSEPTEMBER 30, 2003

Assets and other debits

Liabilities

Fund equity and other creditsInvestment in general fixed assetsReserved for restricted assetsReserved for debt serviceReserved for expenditures

UnreservedTotal fund equity

Total liabilities and fund equity

PEGCA

$35,093

HRC

$70,597

$0 $69,175

4001,275

06,274

27,144

34,720000

(33,298)

0171,342

00

231,00135,093 1,422 402,343

$35,093 $70,597

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$402,343



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STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR FISCAL YEAR ENDED SEPTEMBER 30, 2003 PEGCA HRC PEDC

Revenues $166,430 $238,829 $375,595 Expenditures (1,091,940) (242,865) (370,242)Excess (deficiency) of revenues over expenditures (925,510) (4,036) 5,353 Fund balance beginning 960,203 (29,262) 396,990

Fund balance ending $34,693 ($33,298) $402,343

B. Basic Financial Statements – GASB Statement #34 Government-Wide and Fund Financial

Statements The basic financial statements consist of the government-wide (based on the County as a whole, including its component units) and fund financial statements. Both sets of statements categorize primary activities as either governmental or business-type activities. The government -wide financial statements include a Statement of Net Assets and a Statement of Activities which report on the government as a whole and provide a consolidated financial picture of the government. For the most part, interfund activities are eliminated to avoid distorted financial results. The amounts reported as internal balances represent the residual amounts due between governmental and business-type activities. Fiduciary funds of the government are also eliminated from this presentation since these resources are not available for general government funding purposes. The Statement of Activities reports functional categories of programs provided by the County and demonstrates how and to what degree those programs are supported by specific revenue. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on external fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given program are supported by specific revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. General revenues consist of all taxes and other items collected that help support all functions of Escambia County government. Individual fund fi nancial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.



STATEMENT OF REVENUES,EXPENDITURES AND CHANGESIN FUND BALANCE FORFISCAL YEAR ENDEDSEPTEMBER 30, 2003

PEGCA fl: PEDC

Revenues $166,430 $238,829 $375,595Expenditures (1,091,940) (242,865) (370,242)Excess (deficiency) of revenues over expenditures (925,510) (4,036) 5,353Fund balance beginning 960,203 (29,262) 396,990

Fund balance ending $34,693 ($33,298) $402,343

B. Basic Financial Statements — GASB Statement #34 Government-Wide and Fund FinancialStatements

The basic financial statements consist of the government-wide (based on the County as a whole,including its component units) and fund financial statements. Both sets of statements categorize primaryactivities as either governmental or business-type activities.

The government-wide financial statements include a Statement of Net Assets and a Statement ofActivities which report on the government as a whole and provide a consolidated financial picture of thegovernment. For the most part, interfund activities are eliminated to avoid distorted financial results. Theamounts reported as internal balances represent the residual amounts due between governmental andbusiness-type activities. Fiduciary funds of the government are also eliminated from this presentationsince these resources are not available for general government funding purposes.

The Statement of Activities reports functional categories of programs provided by the County anddemonstrates how and to what degree those programs are supported by specific revenue. Governmentalactivities, which normally are supported by taxes and intergovernmental revenues, are reportedseparately from business-type activities, which rely to a significant extent on external fees and charges forsupport. Likewise, the primary government is reported separately from certain legally separatecomponent units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given program aresupported by specific revenues. Direct expenses are those that are clearly identifiable with a specificprogram. Program revenues include 1) charges to customers or applicants who purchase, use, or directlybenefit from goods, services, or privileges provided by a given function or segment and 2) grants andcontributions that are restricted to meeting the operational or capital requirements of a particular functionor segment. General revenues consist of all taxes and other items collected that help support allfunctions of Escambia County government.

Individual fund financial statements are provided for governmental funds, proprietary funds and fiduciaryfunds, even though the latter are excluded from the government-wide financial statements. Majorindividual governmental funds and major individual enterprise funds are reported as separate columns inthe fund financial statements.

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The County reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Transportation and Drainage Fund accounts for monies collected from the unincorporated area of the County and expended on transportation projects that benefit those citizens of the unincorporat ed areas of the County, including street lighting, and to account for monies to provide drainage within specific districts. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds. The Capital Improvement Program Fund accounts for resources designated for use on various capital improvements.

The Local Option Sales Tax Fund accounts for monies collected pursuant to Florida Statutes 212.055, which authorized counties to impose a one percent (1%) local option infrastructure sales surtax upon taxable transactions occurring within Escambia County, to provide for road and drainage projects and improvements, recreation projects, public safety, expansion of jail and court facilities, and community redevelopment projects.

The County reports the following major proprietary funds:

The Solid Waste Fund accounts for solid waste services provided to the residents of Escambia County, Florida. Activities necessary to provide such services include administration, operations, maintenance, and billing and collection.

The Civic Center Fund accounts for the operation, maintenance and improvements of the County’s Civic Center. The Economic Development and Industrial Fund accounts for the construction and operation of the industrial parks of Escambia County.

Additionally, the government reports the following fund types:

The Internal Service Fund accounts for the retention of some risk of certain claims against Escambia County including workers compensation and casualty and property. The County is protected by sovereign immunity for all liability claims in excess of $100,000. Umbrella coverage is purchased for property claims in excess of $75,000 and worker’s compensation claims in excess of $350,000.

Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Agency funds are merely clearing accounts for assets held by a government as an agent for individuals, private organizations, other governments or other funds.

C. Basis of Presentation, Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the



The County reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financialresources of the general government, except those required to be accounted for in another fund.

The Transportation and Drainage Fund accounts for monies collected from the unincorporatedarea of the County and expended on transportation projects that benefit those citizens of theunincorporated areas of the County, including street lighting, and to account for monies to providedrainage within specific districts.

The Debt Service Fund accounts for the resources accumulated and payments made for principaland interest on long-term debt of governmental funds.

The Capital Improvement Program Fund accounts for resources designated for use on variouscapital improvements.

The Local Option Sales Tax Fund accounts for monies collected pursuant to Florida Statutes212.055, which authorized counties to impose a one percent (1%) local option infrastructure salessurtax upon taxable transactions occurring within Escambia County, to provide for road anddrainage projects and improvements, recreation projects, public safety, expansion of jail andcourt facilities, and community redevelopment projects.

The County reports the following major proprietary funds:

The Solid Waste Fund accounts for solid waste services provided to the residents of EscambiaCounty, Florida. Activities necessary to provide such services include administration, operations,maintenance, and billing and collection.

The Civic Center Fund accounts for the operation, maintenance and improvements of theCounty’s Civic Center.

The Economic Development and Industrial Fund accounts for the construction and operation ofthe industrial parks of Escambia County.

Additionally, the government reports the following fund types:

C.

The Internal Service Fund accounts for the retention of some risk of certain claims againstEscambia County including workers compensation and casualty and property. The County isprotected by sovereign immunity for all liability claims in excess of $100,000. Umbrella coverageis purchased for property claims in excess of $75,000 and worker’s compensation claims inexcess of $350,000.

Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement ofresults of operations. Agency funds are merely clearing accounts for assets held by agovernment as an agent for individuals, private organizations, other governments or other funds.

Basis of Presentation, Basis of Accounting

The government-wide financial statements are reported using the economic resources measurementfocus and the accrual basis of accounting, as are the proprietary find and fiduciary fund financialstatements. Revenues are recorded when earned and expenses are recorded when a liability isincurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the

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year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. State shared revenues, sales taxes, franchise taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, which are recorded only when payment is due. Capital asset acquisitions are expenditures in governmental funds. Monies received from issuing long term debt and acquisitions under capital leases are reported as other financing sources. Escambia County chooses to allocate the indirect costs to functional activities through various automatic allocation charge methods. Therefore, expenses reported for functional activities include these allocated indirect costs. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Under the terms of grant agreements, the County funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. The County has elected to follow FASB statements and interpretations issued on or before November 30, 1989, for all governmental and business-type activities and enterprise funds, unless those standards conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB) pronouncements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenue include 1) charges to customers for goods, services, or privileges provided; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds and the internal service fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported on nonoperating revenues and expenses. D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents are considered to be cash on hand, demand deposits, and short -term investments with original maturities of three months or less from date of acquisition.



year for which they are levied. Grants and similar items are recognized as revenue as soon as alleligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soon asthey are both measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the current period. Forthis purpose, the County considers revenues to be available if they are collected within 60 days of the endof the current fiscal period. State shared revenues, sales taxes, franchise taxes, and interest associatedwith the current fiscal period are all considered to be susceptible to accrual and so have been recognizedas revenues of the current fiscal period. Expenditures generally are recorded when a liability is incurred,except debt service expenditures, as well as expenditures related to compensated absences and claimsand judgments, which are recorded only when payment is due. Capital asset acquisitions areexpenditures in governmental funds. Monies received from issuing long term debt and acquisitions undercapital leases are reported as other financing sources.

Escambia County chooses to allocate the indirect costs to functional activities through various automaticallocation charge methods. Therefore, expenses reported for functional activities include these allocatedindirect costs. Elimination of these charges would distort the direct costs and program revenues reportedfor the various functions concerned.

Under the terms of grant agreements, the County funds certain programs by a combination of specificcost-reimbursement grants, categorical block grants, and general revenues. Thus, when programexpenses are incurred, there are both restricted and unrestricted net assets available to finance theprogram. It is the County’s policy to first apply cost-reimbursement grant resources to such programs,followed by categorical block grants, and then by general revenues.

The County has elected to follow FASB statements and interpretations issued on or before November 30,1989, for all governmental and business-type activities and enterprise funds, unless those standardsconflict with or contradict guidance of the Governmental Accounting Standards Board (GASB)pronouncements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financialstatements.

Amounts reported as program revenue include 1) charges to customers for goods, services, or privilegesprovided; 2) operating grants and contributions; and 3) capital grants and contributions, including specialassessments. hternally dedicated resources are reported as general revenues rather than programrevenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund’s principal ongoing operations. The principal operating revenues of theCounty's enterprise funds are charges to customers for sales and services. Operating expenses forenterprise funds and the internal service fund include the cost of sales and services, administrativeexpenses, and depreciation on capital assets. All revenues and expenses not meeting this definition arereported on nonoperating revenues and expenses.

D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents are considered to be cash on hand, demand deposits, and short-terminvestments with original maturities of three months or less from date of acquisition.

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Equity in Pooled Cash and Investments are monies which are not legally restricted to separate administration that are pooled for investment purposes with each individual fund and/or account maintained on a daily transaction basis. Investment earnings are distributed in accordance with the participating funds’ relative percentage of investments. Only the Board of County Commissioners utilizes “Equity in Pooled Cash and Investments.” “Equity in Pooled Cash and Investments” consists of demand deposits, certificates of deposit, discount and premium notes of certain instrumentalities, and monies placed with the State Board of Administration for participation in the State investment pool. The Proprietary Fund Types use this pool as a demand deposit account and all amounts in the pool are considered cash and cash equivalents for purposes of the Statement of Cash Flows. As prescribed by GASB Statement No. 31, money market investments are reported at amortized cost rather than fair value. The County’s investment of surplus funds and restricted reserve funds is governed by Florida Statutes, which permits adoption of an investment policy in accordance with specific requirements of Florida Statute 218.415 (1) – (16). The County has adopted such policy and its authorized investments include direct obligations of the U.S. Treasury, Federal Instrumentalities, time deposits and savings accounts in qualified public depositories, tax exempt obligations of the State of Florida, the Florida Counties Investment Trust, Securities and Exchange qualified open-end money market mutual funds, and repurchase agreements. The County is also permitted to invest in the Local Government Surplus Trust Fund, an external investment pool administered by the Florida State Board of Administration (SBA) in accordance with appropriate state laws and regulations. Investments held in the SBA consist largely of treasury instruments, federal agency obligations, certificates of deposit, repurchase agreements, bankers’ acceptance, and commercial paper. The SBA meets the criteria to be a “2-a-7 like” pool as defined in GASB Statement No. 31 and therefore, the reported investment balance is equal to the value of pooled shares. The Office of the Auditor General performs an operational audit of the activities and investments of the State Board of Administration. Investments not included in equity in pooled cash consist of certificates of deposit held by the Sheriff at local banks which are qualified public depositories. As such, they are considered to be fully insured for risk categorization purposes. Trade Receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 120 days comprise the trade accounts receivable allowance for uncollectibles, with the exception that a 90 day policy is used by the Solid Waste Fund. Escambia County Ordinance 82-7 provides for the collection of security deposits to be applied to delinquent Solid Waste accounts receivables. The County records unbilled service receivables for services that have been rendered but not billed at the end of the fiscal year. Property tax revenues and collection procedures for real and personal property valuations are determined each year as of January 1 by the Property Appraiser’s Office. Florida Statutes require that all property be assessed at 100% of just value. For 2003, the County-wide millage rate was 8.756 mills. All property taxes become due and payable on November 1, and are delinquent on April 1 of the following year. The legal lien date is January 1 of each year. Property taxes are billed in arrears. Discounts of 4, 3, 2, and 1 percent are allowed for early payment in November through February, respectively. The Tax Collector advertises as required by statute and on June 1st sells tax certificates for unpaid taxes on real property. After two years, the certificate holder has the option to make a tax deed application or to continue holding the certificate until it is redeemed. Billed and collected during the fiscal year, there are no significant amounts outstanding as of September 30, 2003.



Equity in Pooled Cash and Investments are monies which are not legally restricted to separateadministration that are pooled for investment purposes with each individual fund and/or accountmaintained on a daily transaction basis. Investment earnings are distributed in accordance with theparticipating funds’ relative percentage of investments.

Only the Board of County Commissioners utilizes “Equity in Pooled Cash and Investments.” ”Equity inPooled Cash and Investments” consists of demand deposits, certificates of deposit, discount andpremium notes of certain instrumentalities, and monies placed with the State Board of Administration forparticipation in the State investment pool.

The Proprietary Fund Types use this pool as a demand deposit account and all amounts in the pool areconsidered cash and cash equivalents for purposes of the Statement of Cash Flows.

As prescribed by GASB Statement N0. 31, money market investments are reported at amortized costrather than fair value. The County’s investment of surplus funds and restricted reserve funds is governedby Florida Statutes, which permits adoption of an investment policy in accordance with specificrequirements of Florida Statute 218.415 (1) — (16). The County has adopted such policy and itsauthorized investments include direct obligations of the US. Treasury, Federal lnstrumentalities, timedeposits and savings accounts in qualified public depositories, tax exempt obligations of the State ofFlorida, the Florida Counties Investment Trust, Securities and Exchange qualified open-end moneymarket mutual funds, and repurchase agreements. The County is also permitted to invest in the LocalGovernment Surplus Trust Fund, an external investment pool administered by the Florida State Board ofAdministration (SBA) in accordance with appropriate state laws and regulations. Investments held in theSBA consist largely of treasury instruments, federal agency obligations, certificates of deposit, repurchaseagreements, bankers’ acceptance, and commercial paper. The SBA meets the criteria to be a “2-a-7 like”pool as defined in GASB Statement No. 31 and therefore, the reported investment balance is equal to thevalue of pooled shares. The Office of the Auditor General performs an operational audit of the activitiesand investments of the State Board of Administration.

Investments not included in equity in pooled cash consist of certificates of deposit held by the Sheriff atlocal banks which are qualified public depositories. As such, they are considered to be fully insured forrisk categorization purposes.

Trade Receivables are shown net of an allowance for uncollectibles. Trade accounts receivable inexcess of 120 days comprise the trade accounts receivable allowance for uncollectibles, with theexception that a 90 day policy is used by the Solid Waste Fund. Escambia County Ordinance 82-7provides for the collection of security deposits to be applied to delinquent Solid Waste accountsreceivables. The County records unbilled service receivables for services that have been rendered butnot billed at the end of the fiscal year.

Property tax revenues and collection procedures for real and personal property valuations are determinedeach year as of January 1 by the Property Appraiser’s Office. Florida Statutes require that all property beassessed at 100% of just value. For 2003, the County-wide millage rate was 8.756 mills. All propertytaxes become due and payable on November 1, and are delinquent on April 1 of the following year. Thelegal lien date is January 1 of each year. Property taxes are billed in arrears. Discounts of 4, 3, 2, and 1percent are allowed for early payment in November through February, respectively. The Tax Collectoradvertises as required by statute and on June 1St sells tax certificates for unpaid taxes on real property.After two years, the certificate holder has the option to make a tax deed application or to continue holdingthe certificate until it is redeemed. Billed and collected during the fiscal year, there are no significantamounts outstanding as of September 30, 2003.

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Due From/(To) Other Funds are activities between funds. Such amounts are representative of lending/borrowing arrangements outstanding at the end of the fiscal year and referred to as either “due to /from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non—current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances To/(From) Other Funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Inventory for Escambia County is valued at cost (first-in, first-out). Inventory balances in general, special revenue and enterprise funds are accounted for on the consumption method, i.e., expenditures and expenses are recognized when inventories are used. Reported inventories are equally offset by a fund balance reserve to indicate that they are not “available spendable resources” even though they are a component of net current assets. Restricted Assets are comprised of certain assets of both governmental and business-type activities that are restricted by specific provisions of bond resolutions and agreements with various parties. Assets so designated are identified as restricted assets on the balance sheet since their use is limited. Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government -wide financial statements. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The County maintains a $750 threshold and an estimated useful life in excess of one year for additions to equipment. Buildings, public domain and system infrastructure assets which represent major expenditures for such items as roads, water and sewer lines, landfill improvements, and parks and drainage systems are capitalized at historical cost. Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation has been provided using the straight-line method. The estimated useful lives of the various classes of depreciable capital assets are as follows: Buildings 10 – 50 years Improvements 20 – 50 years Infrastructure 20 – 50 years Equipment 3 – 10 years Unamortized Debt Expense is recorded as a deferred asset and is amortized using the straight -line method over the life of the related debt. In the fund financial statements, governmental fund types recognize bond issuance costs during the current period as debt service expenditures. Amortization of Premium and Discounts on Bonds is determined using the straight-line method over the life of the related debt. The amortization of premium is recorded as an adjustment to revenue. The balance of unamortized bond premium is reported as a long-term liability. In the fund financial statements, governmental fund types recognize bond premiums during the current period. The face



Due From/(To) Other Funds are activities between funds. Such amounts are representative oflending/borrowing arrangements outstanding at the end of the fiscal year and referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., thenon—current portion of interfund loans). Any residual balances outstanding between the governmentalactivities and business-type activities are reported in the government-wide financial statements as“internal balances.”

Advances Tol(From) Other Funds as reported in the fund financial statements, are offset by a fundbalance reserve account in applicable governmental funds to indicate that they are not available forappropriation and are not expendable available financial resources.

Inventory for Escambia County is valued at cost (first-in, first-out). Inventory balances in general, specialrevenue and enterprise funds are accounted for on the consumption method, i.e., expenditures andexpenses are recognized when inventories are used. Reported inventories are equally offset by a fundbalance reserve to indicate that they are not “available spendable resources” even though they are acomponent of net current assets.

Restricted Assets are comprised of certain assets of both governmental and business-type activities thatare restricted by specific provisions of bond resolutions and agreements with various parties. Assets sodesignated are identified as restricted assets on the balance sheet since their use is limited.

Capital Assets which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,sidewalks, and similar items), are reported in the applicable governmental or business-type activitiescolumns in the government-wide financial statements. Such assets are recorded at historical cost orestimated historical cost if purchased or constructed. Donated capital assets are recorded at estimatedfair market value at the date of donation.

The County maintains a $750 threshold and an estimated useful life in excess of one year for additions toequipment. Buildings, public domain and system infrastructure assets which represent majorexpenditures for such items as roads, water and sewer lines, landfill improvements, and parks anddrainage systems are capitalized at historical cost. Major outlays for capital assets and improvements arecapitalized as projects are constructed.

The costs of normal maintenance and repairs that do not add to the value of the asset or materiallyextend assets lives are not capitalized.

Depreciation has been provided using the straight-line method. The estimated useful lives of the variousclasses of depreciable capital assets are as follows:

Buildings 10 — 50 yearsImprovements 20 — 50 yearsInfrastructure 20 — 50 yearsEquipment 3 — 10 years

Unamortized Debt Expense is recorded as a deferred asset and is amortized using the straight-linemethod over the life of the related debt. In the fund financial statements, governmental fund typesrecognize bond issuance costs during the current period as debt service expenditures.

Amortization of Premium and Discounts on Bonds is determined using the straight-line method overthe life of the related debt. The amortization of premium is recorded as an adjustment to revenue. Thebalance of unamortized bond premium is reported as a long-term liability. In the fund financialstatements, governmental fund types recognize bond premiums during the current period. The face

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amount of debt issued and premiums received on debt issuances are reported as other financing sources. Compensated Absences are accrued in accordance with GASB Statement No. 16. It is the policy of the County to permit employees to accumulate a limited amount of earned but unused leave benefits which will be paid to employees upon separation from service. Unpaid compensated absences are recorded as a liability when the benefits are earned in the government-wide and proprietary fund financial statements. For governmental funds, there is no legal requirement to accumulate expendable available financial resources to liquidate the obligation; these expenditures are recognized in the governmental funds when payments are made to employees. Deferred Revenues include amounts collected before revenue recognition criteria are met. Self Insurance Claims Payable represents liabilities for reported claims and incurred but not reported claims based on an actuarial review of claims pending and historical experience. Landfill Closure and Postclosure Care Payable represents the recognition of municipal solid waste landfill closure and postclosure care costs under the State of Florida’s Solid Waste Management Act of 1988 (the “1988 Act”), regulations of the Federal Environmental Protection Agency (EPA) and Governmental Accounting Standards Board Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs. MSWLF costs incurred for landfills accepting solid waste after final implementation of the 1988 Act and EPA regulations are recognized as an expense and a liability in each year that the MSWLF accepts solid waste based upon the landfill capacity used during that year. Long Term Obligations in the government-wide financial statements, and the proprietary fund types in the fund financial statements are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Fund Equity in the governmental fund’s financial statements report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Net Assets The government-wide and business type fund financial statements utilize a net asset presentation. Net assets are categorized as invested in capital assets (net of related debt), restricted and unrestricted. Invested in Capital Assets (net of related debt) is intended to reflect the portion of net assets which are associated with non-liquid, capital assets less outstanding capital asset related debt. Restricted Net Assets are liquid assets (generated from revenues and net bond proceeds) which are not accessible for general use because of third-party (statutory, bond covenant or granting agency) limitations.



amount of debt issued and premiums received on debt issuances are reported as other financingsources.

Compensated Absencesare accrued in accordance with GASB Statement No. 16. It is the policy of theCounty to permit employees to accumulate a limited amount of earned but unused leave benefits whichwill be paid to employees upon separation from service. Unpaid compensated absences are recorded asa liability when the benefits are earned in the government-wide and proprietary fund financial statements.For governmental funds, there is no legal requirement to accumulate expendable available financialresources to liquidate the obligation; these expenditures are recognized in the governmental funds whenpayments are made to employees.

Deferred Revenues include amounts collected before revenue recognition criteria are met.

Self Insurance Claims Payable represents liabilities for reported claims and incurred but not reportedclaims based on an actuarial review of claims pending and historical experience.

Landfill Closure and Postclosure Care Payable represents the recognition of municipal solid wastelandfill closure and postclosure care costs under the State of Florida’s Solid Waste Management Act of1988 (the “1988 Act“), regulations of the Federal Environmental Protection Agency (EPA) andGovernmental Accounting Standards Board Statement No. 18, Accounting for Municipal Solid WasteLandfill Closure and Postclosure Care Costs. MSWLF costs incurred for landfills accepting solid wasteafter final implementation of the 1988 Act and EPA regulations are recognized as an expense and aliability in each year that the MSWLF accepts solid waste based upon the landfill capacity used duringthat year.

Long Term Obligations in the government-wide financial statements, and the proprietary fund types inthe fund financial statements are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets.

Fund Equity in the governmental fund’s financial statements report reservations of fund balance foramounts that are not available for appropriation or are legally restricted by outside parties for use for aspecific purpose. Designations of fund balance represent tentative management plans that are subject tochange.

Net Assets

The government-wide and business type fund financial statements utilize a net asset presentation. Netassets are categorized as invested in capital assets (net of related debt), restricted and unrestricted.

Invested in Capital Assets (net of related debt) is intended to reflect the portion of net assets which areassociated with non-liquid, capital assets less outstanding capital asset related debt.

Restricted Net Assets are liquid assets (generated from revenues and net bond proceeds) which are notaccessible for general use because of third-party (statutory, bond covenant or granting agency)limitations.

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Unrestricted Net Assets represent unrestricted liquid assets. While County management may have categorized and segmented portions for various purposes, the Board of County Commissioners has the unrestricted authority to revisit or alter these managerial decisions.

NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles as required by Florida Statute 129 for all governmental funds, except the General Trust Special Revenue Fund. All annual appropriations lapse at fiscal year end. On or before May 1 of each year, the Sheriff, Clerk of the Circuit Court, Tax Collector, Property Appraiser, Supervisor of Elections and the Civil Service Board each submit to the Board of County Commissioners a tentative budget for the ensuing fiscal year. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County Budget Officer submits to the Board a proposed budget for the fiscal year commencing the following October 1st. The Budget includes proposed expenditures and the means of financing them. The Board holds public hearings and a final budget must be prepared and adopted no later than September 30. The County’s budget is legally enacted through passage of a resolution. The appropriated budget is prepared by fund, function and department. The Office of Management and Budget is authorized to transfer budgeted amounts within departments of a fund and between departments of a fund; however, the Board of County Commissioners must approve any revisions that alter the total expenditures of any fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The Board of County Commissioners approved supplemental budget amendments during the year that increased the original budget.

NOTE 3 – DETAIL NOTES ON ALL FUNDS A. Assets Cash, Investments and Equity in Pooled Cash and Investments Cash consists of monies placed on deposit with financial institutions in the form of demand deposit accounts, time deposit accounts and certificates of deposit. All of the “public deposits” are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, “Florida Security for Public Deposit Act.” Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository’s collateral pledging level. The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in the event of a default or insolvency. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. Accordingly, these deposits are considered to be fully insured.



Unrestricted Net Assets represent unrestricted liquid assets. While County management may havecategorized and segmented portions for various purposes, the Board of County Commissioners has theunrestricted authority to revisit or alter these managerial decisions.

NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles asrequired by Florida Statute 129 for all governmental funds, except the General Trust Special RevenueFund. All annual appropriations lapse at fiscal year end.

On or before May 1 of each year, the Sheriff, Clerk of the Circuit Court, Tax Collector, Property Appraiser,Supervisor of Elections and the Civil Service Board each submit to the Board of County Commissioners atentative budget for the ensuing fiscal year.

Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the CountyBudget Officer submits to the Board a proposed budget for the fiscal year commencing the followingOctober 15‘. The Budget includes proposed expenditures and the means of financing them.

The Board holds public hearings and a final budget must be prepared and adopted no later thanSeptember 30. The County’s budget is legally enacted through passage of a resolution.

The appropriated budget is prepared by fund, function and department. The Office of Management andBudget is authorized to transfer budgeted amounts within departments of a fund and betweendepartments of a fund; however, the Board of County Commissioners must approve any revisions thatalter the total expenditures of any fund. The legal level of budgetary control (i.e., the level at whichexpenditures may not legally exceed appropriations) is the fund level. The Board of CountyCommissioners approved supplemental budget amendments during the year that increased the originalbudget.

NOTE 3 — DETAIL NOTES ON ALL FUNDS

A. Assets

Cash, Investments and Equity in Pooled Cash and Investments

Cash consists of monies placed on deposit with financial institutions in the form of demand depositaccounts, time deposit accounts and certificates of deposit. All of the “public deposits” are held inqualified public depositories pursuant to Florida Statutes, Chapter 280, “Florida Security for PublicDeposit Act.” Under the Act, all qualified public depositories are required to pledge eligible collateralhaving a market value equal to or greater than the average daily or monthly balance of all public deposits,times the depository’s collateral pledging level. The Public Deposit Security Trust Fund has a procedureto allocate and recover losses in the event of a default or insolvency. When public deposits are made inaccordance with Chapter 280, no public depositor shall be liable for any loss thereof. Any losses to publicdepositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, ifnecessary, assessments against other qualified public depositories of the same type as the depository indefault. Accordingly, these deposits are considered to be fully insured.

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The carrying amount of deposits for the County and its discretely presented component units at September 30, 2003, are as follows: Carrying Amount Bank Balance

Escambia County $46,372,669 $45,096,391 Escambia County Civil Service Board 168,092 175,699 Santa Rosa Island Authority 2,741,545 2,904,510 Escambia County Housing Authority 2,744,461 2,756,567 Law Library Board 26,025 32,569 Investments as of September 30, 2003, are categorized in accordance with GASB Statement No. 3 to indicate the level of risk assumed by the County: Category (1) includes investments that are insured or registered or for which the securities are held by the County or its agent in the County’s name; Category (2) includes uninsured or unregistered investments for which the securities are held by the counter party’s trust department or agent in the County’s name; Category (3) includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the County’s name. Category Carrying Fair (1) (2) (3) Amount Value U.S. Agencies $4,996,014 $0 $0 $4,996,014 $4,997,000 U.S. Treasuries 4,995,570 0 0 4,995,570 4,996,800

$9,991,584 $0 $0

Investments not subject to categorization: Local Government Surplus Funds Trust Fund - Investment Pool - Collateral held by State Board of Administration 68,351,141 68,351,141Investment in money market funds 41,303,777 41,303,777

Total Investments $119,646,502 $119,648,718

A reconciliation of cash and cash equivalents, equity in pooled cash and investments, and investments as shown in the Statement of Net Assets for the primary government is shown below: Pooled Cash and Investments Deposits with financial institutions $46,372,669 Investments 119,646,502

$166,019,171

Government-Wide Fiduciary Funds Statement of Statement of Net Assets Net Assets Total Cash and cash equivalents $14,526,171 $5,961,724 $20,487,895 Equity in pooled cash 139,847,144 0 139,847,144 Investments 200,000 0 200,000 Other restricted cash 5,484,132 0 5,484,132

Total $160,057,447 $5,961,724 $166,019,171



The carrying amount of deposits for the County and its discretely presented component units atSeptember 30, 2003, are as follows:

Escambia CountyEscambia County Civil Service BoardSanta Rosa Island AuthorityEscambia County Housing AuthorityLaw Library Board

Carrying Amount Bank Balance

$46,372,669168,092

2,741,5452,744,461

26,025

$45,096,391175,699

2,904,5102,756,567

32,569

Investments as of September 30, 2003, are categorized in accordance with GASB Statement No. 3 toindicate the level of risk assumed by the County: Category (1) includes investments that are insured orregistered or for which the securities are held by the County or its agent in the County’s name; Category(2) includes uninsured or unregistered investments for which the securities are held by the counter party’strust department or agent in the County’s name; Category (3) includes uninsured and unregisteredinvestments for which the securities are held by the counter party, or by its trust department or agent, butnot in the County’s name.

U.S. AgenciesU.S. Treasuries

Category

(1) (2) (3)$4,996,014 $0 $04,995,570 0 0

Investments not subject to categorization:Local Government Surplus Funds Trust Fund -

Investment Pool - Collateral held by StateBoard of Administration

Investment in money market funds

Total Investments

$9,991,584 $0 $0

CarryingAmount

$4,996,0144,995,570

68,351,14141,303,777

FairValue

$4,997,0004,996,800

68,351,14141,303,777

$119,646,502 $119,648,718

A reconciliation of cash and cash equivalents, equity in pooled cash and investments, and investments asshown in the Statement of Net Assets for the primary government is shown below:

Deposits with financial institutionsInvestments

Cash and cash equivalentsEquity in pooled cashInvestmentsOther restricted cash

Total

Government-WideStatement ofNet Assets

Pooled Cashand Investments

$46,372,669119,646,502

$166,019,171

Fiduciary FundsStatement ofNet Assets Total

$14,526,171139,847,144

200,0005,484,132

$5,961,724 $20,487,8950 139,847,1440 200,0000 5,484,132

$160,057,447 $5,961,724 $166,019,171

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Receivables at year end for the government’s individual major funds and nonmajor, internal service and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Accrued Gross for

Accounts Notes Interest Receivables Uncollectible Net

Governmental activities: General $957,187 $0 $60,982 $1,018,169 ($18,371) $999,798 Transportation and drainage 361 0 0 361 0 361 Other nonmajor funds 399,270 91,935 0 491,205 (25,274) 465,931 Internal Service Fund 820,138 0 38,671 858,809 (158,762) 700,047

Total governmental activities $2,176,956 $91,935 $99,653 $2,368,544 ($202,407) $2,166,137

Business-type activities: Solid Waste $823,652 $0 $0 $823,652 ($86) $823,566 Civic Center 44,869 0 0 44,869 (14,682) 30,187

Nonmajor and other funds 7,688,295 0 0 7,688,295 (5,115,688) 2,572,607

Total business-type activities $8,556,816 $0 $0 $8,556,816 ($5,130,456) $3,426,360

Component units:

Civil Service Board $12,064 $0 $0 $12,064 $0 $12,064 Law Library 1,627 0 0 1,627 0 1,627 Santa Rosa Island Authority 335,097 0 0 335,097 0 335,097 Housing Finance Authority 0 0 90,697 90,697 0 90,697

Total component units $348,788 $0 $90,697 $439,485 $0 $439,485

There were no unbilled receivables at September 30, 2003.



Receivables at year end for the government’s individual major funds and nonmajor, internal service andfiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are asfollows:

AllowanceAccrued Gross for

Accounts Notes Interest Receivables Uncollectible Net

Governmental activities:General $957,187 $0 $60,982 $1,018,169 ($18,371) $999,798Transportation and drainage 361 0 O 361 0 361Other nonmajor funds 399,270 91,935 0 491,205 (25,274) 465,931Internal Service Fund 820,138 0 38,671 858,809 (158,762) 700,047

Total governmental activities $2,176,956 $91,935 $99,653 $2,368,544 ($202,407) $2,166,137

Business-type activities:Solid Waste $823,652 $0 $0 $823,652 ($86) $823,566Civic Center 44,869 0 0 44,869 (14,682) 30,187

Nonmajor and other funds 7,688,295 0 0 7,688,295 (5,115,688) 2,572,607

Total business-type activities $8,556,816 $0 $0 $8,556,816 ($5,130,456) $3,426,360

Component units:

Civil Service Board $12,064 $0 $0 $12,064 $0 $12,064Law Library 1,627 0 0 1,627 0 1,627Santa Rosa Island Authority 335,097 0 0 335,097 0 335,097Housing Finance Authority 0 0 90,697 90,697 0 90,697

Total component units $348,788 $0 $90,697 $439,485 $0 $439,485

There were no unbilled receivables at September 30, 2003.

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Capital Assets activity for the year ended September 30, 2003 was as follows: Balance at Balance at 10/01/02 Increases Decreases 09/30/03 Primary Government: Governmental activities:

Capital assets not depreciated: Land $23,423,543 $397,233 ($3,913,668) $19,907,108 Construction in progress 9,193,724 8,976,170 (6,089,723) 12,080,171 Total capital assets not depreciated 32,617,267 9,373,403 (10,003,391) 31,987,279 Capital assets depreciated: Infrastructure 414,574,096 21,586,948 0 436,161,044 Buildings and improvements 124,690,100 1,630,046 (2,309,308) 124,010,838

Equipment 78,776,633 10,229,191 (4,143,462) 84,862,362 Total capital assets depreciated 618,040,829 33,446,185 (6,452,770) 645,034,244 Less accumulated depreciation: Infrastructure 156,951,297 15,219,872 0 172,171,169 Building and improvements 32,059,644 3,591,704 (51,318) 35,600,030 Equipment 53,312,347 9,010,020 (3,608,422) 58,713,945

Total accumulated depreciation 242,323,288 27,821,596 (3,659,740) 266,485,144 Total capital assets depreciated, net 375,717,541 5,624,589 (2,793,030) 378,549,100 Governmental-type activities

capital assets, net $408,334,808 $14,997,992 ($12,796,421) $410,536,379

Business-type activities: Land $6,706,749 $928,535 ($351,204) $7,284,080 Capital assets depreciated: Buildings 30,033,646 185,240 0 30,218,886 Infrastructure 19,531,099 4,421,238 (145,901) 23,806,436 Equipment 11,723,418 2,011,385 (563,323) 13,171,480

Total capital assets depreciated 61,288,163 6,617,863 (709,224) 67,196,802 Less accumulated depreciation:

Buildings 12,873,729 1,072,058 0 13,945,787 Infrastructure 7,721,115 1,150,528 (85,920) 8,785,723 Equipment 6,505,022 1,500,653 (558,288) 7,447,387 Total accumulated depreciation 27,099,866 3,723,239 (644,208) 30,178,897 Total capital assets depreciated, net 34,188,297 2,894,624 (65,016) 37,017,905 Business-type activities

capital assets, net $40,895,046 $3,823,159 ($416,220) $44,301,985



Capital Assets activity for the year ended September 30, 2003 was as follows:

Primam Government:Governmental activities:

Capital assets not depreciated:LandConstruction in progress

Total capital assets not depreciated

Capital assets depreciated:InfrastructureBuildings and improvements

EquipmentTotal capital assets depreciated

Less accumulated depreciation:Infrast'uctureBuilding and improvementsEquipment

Total accumulated depreciationTotal capital assets depreciated, net

Governmental-type activities

capital assets, net

Business-type activities:LandCapital assets depreciated:

BuildingsInfrastructureEquipment

Total capital assets depreciated

Less accumulated depreciation:

BuildingsInfrastructureEquipment

Total accumulated depreciationTotal capital assets depreciated, net

Business-type activities

capital assets, net

Balance at10/01 /02 Increases Decreases

Balance at09/30/03

$23,423,5439,193,724

$397,2338,976,170

($3,913,668)(6,089,723)

$19,907,10812,080,171

32,617,267 9,373,403 (10,003,391) 31,987,279

414,574,096124,690,10078,776,633

21,586,9481,630,046

10,229,191

0(2,309,308)(4,143,462)

436,161,044124,010,83884,862,362

618,040,829

156,951,29732,059,64453,312,347

33,446,185

15,219,8723,591,7049,010,020

(6,452,770)

0(51,318)

(3,608,422)

645,034,244

172,171,16935,600,03058,713,945

242,323,288 27,821,596 (3,659,740) 266,485,144375,717,541 5,624,589 (2,793,030) 378,549,100

$408,334,808

$6,706,749

$14,997,992

$928,535

($12,796,421)

($351,204)

$410,536,379

$7,284,080

30,033,64619,531,09911,723,418

185,2404,421,2382,011,385

0(145,901)(563,323)

30,218,88623,806,43613,171,480

61,288,163 6,617,863 (709,224) 67,196,802

12,873,7297,721,1156,505,022

1,072,0581,150,5281,500,653

0(85,920)

(558,288)

13,945,7878,785,7237,447,387

27,099,866 3,723,239 (644,208) 30,178,89734,188,297 2,894,624 (65,016) 37,017,905

$40,895,046

48

$3,823,159 ($416,220) $44,301,985



49

Depreciation expense was charged to functions/programs of the primary government as follows: Depreciation Ex pense

Governmental activities: Business-type activities: General government $3,553,522 Sanitation $1,675,797 Public safety 7,252,626 Inspections 69,424 Physical environment 82,569 Ambulance 561,511 Transportation, Civic center 1,116,154 including depreciation of general Industrial parks 300,353

infrastructure assets 14,658,753 Total depreciation expense $3,723,239

Economic environment 574,638 Human services 468,865 Culture and recreation 1,230,623

Total depreciation expense $27,821,596

Depreciation on capital assets held by the government’s internal service funds are charged to the general government function. Discretely Presented Component Units for the year ended September 30, 2003, had the following activity: SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITY Buildings $1,584,148 Land $413,071

Improvements other than buildings 10,031,033 Improvements other than buildings 14,539 Equipment 1,216,563 Equipment 57,346

Construction in progress 675,549 Total at historical cost 484,956 Total at historical cost 13,507,293 Less accumulated depreciation: Less accumulated depreciation (4,001,545) Improvements other than buildings (11,631) Equipment (33,188)Santa Rosa Island Authority Total accumulated depreciation (44,819)

capital assets, net $9,505,748

Housing Finance Authority

capital assets, net $440,137



Depreciation expense was charged to functions/programs of the primary government as follows:

Depreciation Ex pense

Governmental activities: Business-type activities:General government $3,553,522 Sanitation $1,675,797Public safety 7,252,626 Inspections 69,424Physical environment 82,569 Ambulance 561,511Transportation, Civic center 1,116,154

including depreciation of general Industrial parks 300,353

infrastructure assets 14,658,753 Total depreciation expense $3,723,239

Economic environment 574,638Human services 468,865Culture and recreation 1,230,623

Total depreciation expense $27,821,596

Depreciation on capital assets held by the government’s internal service funds are charged to the generalgovernment function.

Discretely Presented Component Units for the year ended September 30, 2003, had the followingactivity:

SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITYBuildings $1,584,148 Land $413,071Improvements other than buildings 10,031,033 Improvements other than buildings 14,539Equipment 1,216,563 Equipment 57,346

Construction in progress 675,549 Total at historical cost 484,956Total at historical cost 13,507,293

Less accumulated depreciation:Less accumulated depreciation (4,001,545) Improvements other than buildings (11,631)

Equipment (33,188)Santa Rosa Island Authority Total accumulated depreciation (44,819)

capital assets, net $9,505,748

Housing Finance Authority

capital assets, net $440,137

49



50

Interfund Receivables / Payables: During the course of its operations, the County has numerous transactions between funds to finance operations, provide services, construct assets, and service debt to the extent that certain transactions between funds have not been paid or received as of September 30, 2003. Balances of interfund receivables, payables, and advances are as follows: Interfund Interfund Advances Advances Receivables Payables To From General fund $1,303,352 $500,581 $259,389 $0 Transportation and drainage 6,895 0 0 0 Local option sales tax 523 0 134,148 1,682,573 Nonmajor governmental 91,981 438,963 0 134,148 1,402,751 939,544 393,537 1,816,721

Solid waste 0 1,806 626,200 0 Civic center 0 0 0 259,389 Economic development and industrial fund 0 392,834 0 2,559,735 Nonmajor business-type 0 0 0 0 Internal service 19,965 21 3,616,108 0 Fiduciary - agency 432,563 521,074 0 0

Total major and nonmajor $1,855,279 $1,855,279 $4,635,845 $4,635,845

Interfund Transfers: Transfer Transfer In Out Major Governmental Funds: General fund $2,403,444 $9,371,974

Transportation and drainage 4,468,358 1,197,372 Debt service 66,866,617 0 Capital improvements 766,825 50,375,966 Local option sales tax 0 9,269,675 Non-major Governmental Funds:

Mass transit 1,200,262 0 Grant projects 17,957 959,466 Tourist promotion 0 7,589,568

Public safety programs 2,650 917,981 Toll facilities 0 1,972,425 Community redevelopment agency 722,365 0 Road construction 0 383,441 Major Business-type Activities: Solid waste 850,000 1,692,930 Civic center 6,587,320 0

Non-major Business-type Activities: Ambulance 0 155,000

Total $83,885,798 $83,885,798



Interfund Receivables / Payables:

During the course of its operations, the County has numerous transactions between funds to financeoperations, provide services, construct assets, and service debt to the extent that certain transactionsbetween funds have not been paid or received as of September 30, 2003. Balances of interfundreceivables, payables, and advances are as follows:

InterfundReceivables

Inte rfund Advances AdvancesPayables To From

General fundTransportation and drainageLocal option sales taxNonmajor governmental

Solid wasteCivic centerEconomic development and industrial fundNonmajor business-typeInternal serviceFiduciary - agency

Total major and nonmajor

Interfund Transfers:

Major Governmental Funds:General fund

Transportation and drainageDebt serviceCapital improvementsLocal option sales tax

Non-major Governmental Funds:

Mass transitGrant projectsTourist promotion

Public safety programsToll facilitiesCommunity redevelopment agencyRoad construction

Major Business-type Activities:Solid wasteCivic center

Non-major Business-type Activities:Ambulance

Total

$1,303,3526,895

52391,981

$500,58100

438,963

$259,3890

134,1480

$00

1,682,573134,148

1,402,7510

00

0

19,965432,563

939,544

1,806

392,8340

21521,074

393,537

626,200000

3,616,1080

1,816,721

0259,389

2,559,735000

$1,855,279

TransferIn

$1,855,279

TransferOut

$4,635,845

$2,403,4444,468,358

66,866,617766,825

0

1 ,200,26217,957

02,650

0722,365

0

850,0006,587,320

0

$9,371,9741,197,372

050,375,966

9,269,675

0959,466

7,589,568917,981

1 ,972,4250

383,441

1,692,9300

155,000

$83,885,798 $83,885,798

50

$4,635,845



51

Transfers to or from other funds are based on budgetary requirements. Transfers are also used to move receipts restricted for debt service from the funds collecting the receipts to the debt service fund as required for bond coverage. Restricted Assets for business activities contain the following balances: Economic Development

Solid Civic and Waste Inspections Center Industrial Total Deposits $28,710 $132,569 $664,311 $0 $825,590 Landfill closure 2,970,429 0 0 0 2,970,429 Renewal and replacement 0 0 634,316 0 634,316 Grant obligations 0 0 0 1,053,797 1,053,797

$2,999,139 $132,569 $1,298,627 $1,053,797 $5,484,132

B. Liabilities Payable from Restricted Assets in the business activities contain the following balances: Economic Development Total Solid and Enterprise Internal

Waste Inspections Industrial Funds Service Deposits $28,710 $132,569 $0 $161,279 $65,387 Accrued interest payable 0 0 38,671 38,671 0 Landfill closure and postclosure 91,784 0 0 91,784 0

$120,494 $132,569 $38,671 $291,734 $65,387



Transfers to or from other funds are based on budgetary requirements. Transfers are also used to movereceipts restricted for debt service from the funds collecting the receipts to the debt service fund asrequired for bond coverage.

Restricted Assets for business activities contain the following balances:

EconomicDevelopment

Solid Civic andWaste Inspections Center Industrial Total

Deposits $28,710 $132,569 $664,311 $0 $825,590Landfill closure 2,970,429 0 0 0 2,970,429Renewal and replacement 0 0 634,316 0 634,316Grant obligations O O 0 1,053,797 1,053,797

$2,999,139 $132,569 $1,298,627 $1,053,797 $5,484,132

B. Liabilities

Payable from Restricted Assets in the business activities contain the following balances:

EconomicDevelopment Total

Solid and Enterprise Internal

Waste Inspections Industrial Funds ServiceDeposits $28,710 $132,569 $0 $161,279 $65,387Accrued interest payable 0 0 38,671 38,671 0Landfill closure and postclosure 91,784 0 0 91,784 0

$120,494 $132,569 $38,671 $291,734 $65,387

51



52

Long-Term Debt Changes in long-term bonds, notes payable, loans, capital leases, and compensated absences during 2003 are as follows: Amounts Due Long-Term Beginning Within Balance

Balance One Year Remaining

Long-Term Debt 10/01/02 Additions (Retirements) of 09/30/03 09/30/03

Governmental-type activities: Sales Tax Revenue Bonds $51,430,000 $89,730,000 ($51,430,000) $0 $89,730,000 Road Improvement Revenue Bonds 8,795,000 0 (2,740,000) (895,000) 5,160,000 Capital Improvement Bonds 0 22,305,000 0 (415,000) 21,890,000 Tourist Development Bonds 0 16,885,000 (185,000) (840,000) 15,860,000 Capital Improvement Notes 47,974,872 483,128 (6,711,000) (7,364,000) 34,383,000

FAC 850,000 0 (850,000) 0 0 State of Florida's Toll Facility Note 500,000 0 (30,833) (83,333) 385,834 Capital Leases 399,306 6,081,839 (92,536) (922,258) 5,466,351 General Compensated Absences 4,046,320 207,667 (13,132) (2,091,494) 2,149,361 Internal Service Compensated Absences 26,992 7,761 0 0 34,753 Elected Officials Compensated Absences: Clerk of the Circuit Court 1,206,742 0 (3,619) (163,165) 1,039,958 Sheriff 12,556,782 1,509,302 0 (1,688,033) 12,378,051

Tax Collector 619,560 0 (2,455) (40,875) 576,230 Property Appraiser 400,174 5,191 0 0 405,365

Total $128,805,748 $137,214,888 ($62,058,575) ($14,503,158) $189,458,903

Business-type activities: Revenue Bonds Payable: Civic Center Bond (Tourist Development) $4,650,000 $0 ($4,650,000) $0 $0 Notes Payable: Civic Center Note 829,128 0 (829,128) 0 0 Solid Waste Note 1,579,149 0 (394,787) (394,787) 789,575

2,408,277 0 (1,223,915) (394,787) 789,575

Total bonds, notes and loans payable $7,058,277 $0 ($5,873,915) ($394,787) $789,575

Compensated Absences: Solid Waste Compensated Absences $270,674 $90,922 $0 ($22,203) $339,393 Inspections Compensated Absences 390,238 48,303 0 0 438,541 Ambulance Compensated Absences 372,147 2,935 0 0 375,082

Total $1,033,059 $142,160 $0 ($22,203) $1,153,016

The Internal Service fund predominantly serves the governmental funds. Accordingly, long-term liabilities are included as part of the above totals for governmental activities. At year end, $34,753 of internal service fund’s compensated absences are included in the above amounts. Claims and judgments, and compensated absences for governmental activities, are generally liquidated by the General Fund.



Long-Term Debt Changesin long-term bonds, notes payable, loans, capital leases, and compensatedabsences during 2003 are as follows:

Long-Term Debt

Beginning

Balance

10/01/02 Additions (Retirements)

Amounts DueWithin

One Year

of 09/30/03

Long-TermBalance

Remaining

09/30/03Governmental-type activities:Sales TaX Revenue BondsRoad Improvement Revenue BondsCapital Improvement BondsTourist Development BondsCapital Improvement Notes

FACState of Florida's Toll Facility NoteCapital LeasesGeneral Compensated AbsencesInternal Service Compensated AbsencesElected Officials Compensated Absences:Clerk of the Circuit CourtSheriff

TaX CollectorProperty Appraiser

Total

Business-type activities:Revenue Bonds Payable:

Civic Center Bond (Tourist Development)

Notes Payable:Civic Center NoteSolid Waste Note

Total bonds, notes and loans payable

Compensated Absences:Solid Waste Compensated AbsencesInspections Compensated AbsencesAmbulance Compensated Absences

Total

$51,430,0008,795,000

00

47,974,872850,000500,000399,306

4,046,32026,992

1,206,74212,556,782

619,560400,174

$89,730,0000

22,305,00016,885,000

483,12800

6,081,839207,667

7,761

01,509,302

05,191

($51,430,000)(2,740,000)

0(185,000)

(6,711,000)(850,000)(30,833)(92,536)(13,132)

0

(3,619)0

(2,455)0

$0(895,000)(415,000)(840,000)

(7,364,000)0

(63,333)(922,258)

(2,091,494)0

(163,165)(1,688,033)

(40,875)0

$89,730,0005,160,000

21,890,00015,860,00034,383,000

0385,834

5,466,3512,149,361

34,753

1,039,95812,378,051

576,230405,365

$128,805,748

$4,650,000

829,1281,579,149

$137,214,888

$0

OO

($62,058,575)

($4,650,000)

(829,128)(394,767)

($14,503,158)

$0

0(394,787)

$189,458,903

$0

0789,575

2,408,277 (1,223,915) (394,787) 789,575$7,058,277

$270,674390,238372,147

$0

$90,92248,303

2,935

($5,873,915)

$0

($394,787)

($22,203)00

$789,575

$339,393438,541375,082

$1,033,059 $142,160 $0 ($22,203) $1,153,016

The Internal Service fund predominantly serves the governmental funds. Accordingly, long-term liabilitiesare included as part of the above totals for governmental activities. At year end, $34,753 of internalservice fund’s compensated absences are included in the above amounts. Claims and judgments, andcompensated absences for governmental activities, are generally liquidated by the General Fund.

52



53

Long-term Debt for governmental activities consists of the following: Interest Annual Final Amount

Governmental Activities Rates % Principal Maturity Outstanding

Bonds: Road Improvement Bonds Series 1993B 4.625 - 5.000 895,000 to 1,135,000 01/01/09 $6,055,000 Total Road Improvement Bonds 6,055,000 Sales Tax Revenue Bonds

Serial Bonds - Series 2002 2.000 - 5.250 1,680,000 to 3,290,000 10/01/22 41,355,000 Term Bond - Series 2002 4.75 3,450,000 to 5,485,000 10/01/33 48,375,000 Total Sales Tax Revenue Bonds 89,730,000 Capital Improvement Bonds

Serial Bonds - Series 2002 2.75 - 4.50 415,000 to 510,000 10/01/17 4,885,000 Term Bonds - Series 2002 4.75 - 5.25 530,000 to 1,375,000 10/01/32 17,420,000

Total Road Improvement Bonds 22,305,000 Tourist Development Bonds Series 2002 2.00 - 5.00 840,000 to 1,355,000 10/01/19 16,700,000

Total Tourist Development Bonds 16,700,000 Total Long-term Bonds 134,790,000 Notes:

Capital Improvement Notes City of Gulf Breeze - Series 1997 Variable 315,000 to 1,085,000 10/01/17 9,445,000 City of Gulf Breeze - Series 1998 Variable 2,539,000 to 2,856,000 02/01/07 10,782,000 City of Gulf Breeze - Series 1999B 4.5462 1,010,000 to 4,510,000 12/01/04 5,520,000 City of Gulf Breeze - Series 1999C 4.5462 3,695,000 to 7,385,000 05/01/07 16,000,000 * Total Capital Improvement Notes 41,747,000

Other Notes State of Florida's Toll Facilities Note Interest free 52,500 to 83,334 06/16/09 469,167 Total Long-term Notes 42,216,167

Capital Leases SunTrust - Chiller Lease 3.55 22,574 to 300,304 04/01/11 1,907,323 SunTrust - Heavy Equipment Lease 2.605 792,118 to 878,813 08/14/08 4,174,515 Tax Collector 5.00 8,964 to 107,566 09/30/07 306,771 Total Capital Leases 6,388,609 *Principal annual payments are not due until 12/01/04--only three annual principal payments.

(Continued)



Long-term Debt for governmental activities consists of the following:Interest Annual Final Amount

Governmental Activities Rates % Principal Maturity Outstanding

Bonds:Road Improvement BondsSeries 19938 4.625 - 5.000 895,000 to 1,135,000 01/01/09 $6,055,000

Total Road Improvement Bonds 6,055,000

Sales TaX Revenue Bonds

Serial Bonds - Series 2002 2.000 - 5.250 1,680,000 to 3,290,000 10/01/22 41,355,000Term Bond - Series 2002 4.75 3,450,000 to 5,485,000 10/01/33 48,375,000

Total Sales Tax Revenue Bonds 89,730,000

Capital Improvement Bonds

Serial Bonds - Series 2002 2.75 - 4.50 415,000 to 510,000 10/01/17 4,885,000Term Bonds - Series 2002 4.75 - 5.25 530,000 to 1,375,000 10/01/32 17,420,000

Total Road Improvement Bonds 22,305,000

Tourist Development BondsSeries 2002 2.00 - 5.00 840,000 to 1,355,000 10/01/19 16,700,000

Total Tourist Development Bonds 16,700,000

Total Long-term Bonds 134,790,000

Notes:

Capital Improvement NotesCity of Gulf Breeze - Series 1997 Variable 315,000 to 1,085,000 10/01/17 9,445,000City of Gulf Breeze - Series 1998 Variable 2,539,000 to 2,856,000 02/01/07 10,782,000City of Gulf Breeze - Series 19998 4.5462 1,010,000 to 4,510,000 12/01/04 5,520,000City of Gulf Breeze - Series 19990 4.5462 3,695,000 to 7,385,000 05/01/07 16,000,000 *

Total Capital Improvement Notes 41,747,000

Other NotesState of Florida's ToII Facilities Note Interest free 52,500 to 83,334 06/16/09 469,167

Total Long-term Notes 42,216,167

Capital LeasesSunTrust - Chiller Lease 3.55 22,574 to 300,304 04/01/11 1,907,323SunTrust - Heavy Equipment Lease 2.605 792,118 to 878,813 08/14/08 4,174,515Tax Collector 5.00 8,964 to 107,566 09/30/07 306,771Total Capital Leases 6,388,609

*Principal annual payments are not due until 12/01/04—only three annual principal payments.(Continued)

53



54

Interest Annual Final Amount Governmental Activities (continued) Rates % Principal Maturity Outstanding

Compensated Absences: Board of County Commissioners N / A -- N / A 4,275,608 Clerk of the Circuit Court N / A -- N / A 1,203,123 Sheriff N / A -- N / A 14,066,084 Tax Collector N / A -- N / A 617,105 Property Appraiser N / A -- N / A 405,365

Total Compensated Absences 20,567,285

Total Long-Term Debt $203,962,061

Business activity long-term debt consists of the following: Amount

Interest Annual Final Outstanding

Business Activities Rates % Principal Maturity 9/30/2003

Solid Waste Fund Other Notes Sun Trust Line of Credit Variable $394,787 12/31/05 1,184,362

Less: Current portion (394,787)

Total Other Notes 789,575

Compensated Absences-Business Activities: Solid Waste Fund N / A N / A $339,393 Inspections Fund N / A N / A 438,541 Ambulance N / A N / A 375,082

Total Business Activities Compensated Absences $1,153,016



Governmental Activities (continued)

Compensated Absences:Board of County CommissionersClerk of the Circuit CourtShenfiTax CollectorProperty Appraiser

Total Compensated Absences

Total Long-Term Debt

InterestRates %

N/AN/AN/AN/AN/A

AnnualPrincipal

Business activity long-term debt consists of the following:

Business Activities

Solid Waste FundOther NotesSun Trust Line of Credit

Less: Current portion

Total Other Notes

Compensated Absences -Business Activities:Solid Waste FundInspections FundAmbulance

Total Business Activities Compensated Absences

Interest

Rates %

Variable

N/AN/AN/A

54

FinalMaturity

N/AN/AN/AN/AN/A

Annual Final

Principal Maturity

$394,787 12/31/05

N/AN/AN/A

AmountOutstanding

4,275,6081,203,123

14,066,084617,105405,365

20,567,285

$203,962,061

AmountOutstanding

9/30/2003

1,184,362(394,787)

789,575

$339,393438,541375,082

$1,153,016



55

Annual debt service requirements to maturity to retire long-term bonds, notes, and loans are as follows: Governmental Long-Term Debt

Fiscal Total

Year Principal Ending Revenue Bonds Notes and Loans and

September 30, Principal Interest Principal Interest Interest

2004 $2,150,000 $5,960,352 $7,447,333 $1,118,667 $16,676,352 2005 3,900,000 5,889,236 7,774,333 876,700 18,440,269 2006 4,010,000 5,780,043 8,129,333 619,086 18,538,462 2007 4,125,000 5,660,731 10,739,334 335,677 20,860,742 2008 4,260,000 5,526,741 585,834 95,852 10,468,427

2009-2013 18,635,000 25,629,645 2,950,000 361,684 47,576,329 2014-2018 21,400,000 21,708,914 4,590,000 129,812 47,828,726 2019-2023 21,105,000 16,289,851 0 0 37,394,851 2024-2028 25,025,000 10,949,439 0 0 35,974,439 2029-2033 30,180,000 4,336,777 0 0 34,516,777

Total governmental debt $134,790,000 $107,731,729 $42,216,167 $3,537,478 $288,275,374

Business-Type Activities Long-Term Debt

Fiscal Total Year Principal

Ending Notes and

September 30, Principal Interest Interest

2004 $394,787 $8,049 $402,836 2005 394,787 4,464 399,251 2006 394,788 899 395,687

Total 1,184,362 13,412 1,197,774 Less: Current (394,787) 0 (394,787)

Total business-type debt $789,575 $13,412 $802,987

Long-Term Debt – Bonds Road Improvement Revenue Bonds Series 1993B in aggregate principal amount of $12,630,000 was issued under and pursuant to Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, ordinances and resolution adopted by the Commission of the County. The proceeds of the bonds were used for various road improvement projects throughout the County. The Series 1993B Bonds and the interest thereon are payable solely from and collateralized by the irrevocable lien upon and pledge of (i) the uncommitted Surplus Gas Tax Revenues, and (ii) until otherwise applied as provided in the Resolution, the moneys held in the funds and accounts thereunder (except the Rebate Fund) and in the income and investment thereof (collectively called the “Pledged Revenues”). Sales Tax Revenue Refunding Bonds Series 2002 in aggregate principal amount of $89,730,000, were issued under and pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, and ordinances and resolutions adopted by the Commission of the County. The Bonds are limited special



Annual debt service requirements to maturity to retire long-term bonds, notes, and loans are asfollows:

Governmental Long-Term DebtFiscal

YearEnding

September 30,

20042005200620072008

2009-20132014-20182019-20232024-20282029-2033

Total governmental debt

Business-Type Activities Long-Term DebtFiscalYear

Ending

September 30,

200420052006

TotalLess:Current

Total business-type debt

Long-Term Debt — Bonds

Revenue Bonds Notes and Loans

Principal

$2,150,0003,900,0004,010,0004,125,0004,260,000

18,635,00021,400,00021,105,00025,025,00030,180,000

Interest

$5,960,3525,889,2365,780,0435,660,7315,526,741

25,629,64521,708,91416,289,85110,949,4394,336,777

Principal

$7,447,3337,774,3338,129,333

10,739,334585,834

2,950,0004,590,000

0O0

Interest

$1,118,667876,700619,086335,67795,852

361,684129,812

000

Total

Principaland

Interest

$16,676,35218,440,26918,538,46220,860,74210,468,42747,576,32947,828,72637,394,85135,974,43934,516,777

$134,790,000

Notes

$107,731,729

Principal

$394,787394,787394,788

Interest

$8,0494,464

899

$42,216,167

TotalPrincipal

and

Interest

$402,836399,251395,687

1,184,362 13,412 1,197,774

(394,787) 0 (394,787)$789,575 $13,412 $802,987

$3,537,478 $288,275,374

Road Improvement Revenue Bonds Series 1993B in aggregate principal amount of $12,630,000 wasissued under and pursuant to Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74—8 of the County, as amended, ordinances and resolution adopted by the Commission of the County. Theproceeds of the bonds were used for various road improvement projects throughout the County. TheSeries 1993B Bonds and the interest thereon are payable solely from and collateralized by theirrevocable lien [port and pledge of (i) the uncommitted Surplus Gas Tax Revenues, and (ii) untilotherwise applied as provided in the Resolution, the moneys held in the funds and accounts thereunder(except the Rebate Fund) and in the income and investment thereof (collectively called the “PledgedRevenues”).

Sales Tax Revenue Refunding Bonds Series 2002 in aggregate principal amount of $89,730,000, wereissued under and pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125,Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, andordinances and resolutions adopted by the Commission of the County. The Bonds are limited special

55



56

obligations of the County collateralized by a lien on and pledge of, among other things, the proceeds of the local government half-cent sales tax distributed to the County from the Local Government Half-Cent Sales Tax Clearing Trust Fund. The proceeds of the bonds were used to finance the costs of a current refunding of all of the County’s Sales Tax Revenue Refunding Bonds Series 1993, originally issued in the amount of $50,355,000, with a balance of $48,830,000 at the date of refunding, and to provide approximately $39,000,000 to finance the cost of certain capital improvement projects of the County including (1) renovating and expanding the Sheriff’s administrative building; (2) renovating the jail infirmary; (3) expanding the jail annex; (4) expanding the road prison; (5) acquiring and constructing a parking garage; (6) constructing, renovating and expanding certain facilities contained within the administrative master plan; (7) constructing a library facility in Perdido Key; (8) renovating the juvenile justice addition; (9) constructing a new one-stop permitting building; (10) finishing out the third, fourth and fifth floors of the M.C. Blanchard Judicial Building; and (11) making certain stormwater improvements. The Project also includes construction and/or equipping of other capital improvements to be determined by the County. Simultaneously with the issuance of the 2002 Bonds, the County used other legally available moneys to fully defease the remaining balance outstanding of $2,600,000 on the Sales Tax Revenue Bonds, Series 1989A, originally issued in the amount of $20,675,000. The 1989A Bonds were fully redeemed on November 15, 2002, the first available redemption date after providing notice to bondholders. Tourist Development Revenue Refunding Bonds Series 2002 in aggregate principal amount of $16,885,000 were issued pursuant to the authority of the Constitution, and the laws of the State of Florida, including the County’s Home Rule Ordinances 74-8 and 89-7, and resolutions adopted by the Board of County Commissioners. The proceeds, together with other available moneys, were used to finance the costs of refunding all of the County’s Tourist Development Revenue Bonds, Series 1992, originally issued in the amount of $6,915,000, with a balance of $4,650,000 at the date of refunding, and the County’s outstanding promissory note payable to the Florida Local Government Finance Commission in the amount of $850,000, and to provide approximately $12,000,000 for certain improvements on Santa Rosa Island consisting of beach nourishment and certain capital improvements to the Civic Center. The principal and interest on the 2002 Bonds are payable solely from and collateralized by a lien upon and a pledge of the Tourist Development Tax levied and collected by the County. Capital Improvement Revenue Bonds Series 2002 in aggregate principal amount of $22,305,000 were issued pursuant to the authority of the Constitution, the laws of the State of Florida, County ordinances, the Santa Rosa Island Authority Special Act and various resolutions, including the interlocal agreement entered into by the Authority and the County. The proceeds will be used to finance the construction of certain capital improvements on Santa Rosa Island including road improvements to Via DeLuna Drive and Fort Pickens Road, constructing a water reclamation and reuse system, making improvements to the stormwater management system, burying existing above-ground utilities, and making certain landscaping improvements. The 2002 Bonds are special limited obligations of the County, payable solely from and secured by pledge of residential and commercial lease revenues collected by Santa Rosa Island Authority from island leaseholders (per interlocal agreement) and net toll revenues collected for passage across Bob Sikes Bridge to Santa Rosa Island. Advance Refundings As discussed above, the County issued $89,730,000 Sales Tax Revenue Refunding Bonds, Series 2002 with an average interest rate of 4.7% in part, to current refund $48,830,000 of the Sales Tax Refunding Revenue Bonds, Series 1993 with an average interest rate of 5.7%. Net proceeds applicable to the refunding transaction of $50,375,966 (after payment of underwriting fees, insurance, and other issuance costs) plus an additional $812,566 of 1993 Series sinking fund monies were irrevocably deposited with the paying agent for the refunded bonds. The refunded bonds were subsequently fully redeemed on January 1, 2003, the first available early redemption date. As a result, the 1993 Bonds are considered to



obligations of the County collateralized by a lien on and pledge of, among other things, the proceeds ofthe local government half-cent sales tax distributed to the County from the Local Government Half-CentSales Tax Clearing Trust Fund. The proceeds of the bonds were used to finance the costs of a currentrefunding of all of the County’s Sales Tax Revenue Refunding Bonds Series 1993, originally issued in theamount of $50,355,000, with a balance of $48,830,000 at the date of refunding, and to provideapproximately $39,000,000 to finance the cost of certain capital improvement projects of the Countyincluding (1) renovating and expanding the Sheriff’s administrative building; (2) renovating the jailinfirmary; (3) expanding the jail annex; (4) expanding the road prison; (5) acquiring and constructing aparking garage; (6) constructing, renovating and expanding certain facilities contained within theadministrative master plan; (7) constructing a library facility in Perdido Key; (8) renovating the juvenilejustice addition; (9) constructing a new one-stop permitting building; (10) finishing out the third, fourth andfifth floors of the MC. Blanchard Judicial Building; and (11) making certain stormwater improvements.The Project also includes construction and/or equipping of other capital improvements to be determinedby the County.

Simultaneously with the issuance of the 2002 Bonds, the County used other legally available moneys tofully defease the remaining balance outstanding of $2,600,000 on the Sales Tax Revenue Bonds, Series1989A, originally issued in the amount of $20,675,000. The 1989A Bonds were fully redeemed onNovember 15, 2002, the first available redemption date after providing notice to bondholders.

Tourist Development Revenue Refunding Bonds Series 2002 in aggregate principal amount of$16,885,000 were issued pursuant ’o the authority of the Constitution, and the laws of the State ofFlorida, including the County’s Home Rule Ordinances 74-8 and 89-7, and resolutions adopted by theBoard of County Commissioners. The proceeds, together with other available moneys, were used tofinance the costs of refunding all of the County’s Tourist Development Revenue Bonds, Series 1992,originally issued in the amount of $6,915,000, with a balance of $4,650,000 at the date of refunding, andthe County's outstanding promissory note payable to the Florida Local Government Finance Commissionin the amount of $850,000, and to provide approximately $12,000,000 for certain improvements on SantaRosa Island consisting of beach nourishment and certain capital improvements to the Civic Center. Theprincipal and interest on the 2002 Bonds are payable solely from and collateralized by a lien upon and apledge of the Tourist Development Tax levied and collected by the County.

Capital Improvement Revenue Bonds Series 2002 in aggregate principal amount of $22,305,000 wereissued pursuant to the authority of the Constitution, the laws of the State of Florida, County ordinances,the Santa Rosa Island Authority Special Act and various resolutions, including the interlocal agreemententered into by the Authority and the County. The proceeds will be used to finance the construction ofcertain capital improvements on Santa Rosa Island including road improvements to Via DeLuna Driveand Fort Pickens Road, constructing a water reclamation and reuse system, making improvements to thestormwater management system, burying existing above-ground utilities, and making certain landscapingimprovements. The 2002 Bonds are special limited obligations of the County, payable solely from andsecured by pledge of residential and commercial lease revenues collected by Santa Rosa Island Authorityfrom island Ieaseholders (per interlocal agreement) and net toll revenues collected for passage acrossBob Sikes Bridge to Santa Rosa Island.

Advance Refundings

As discussed above, the County issued $89,730,000 Sales Tax Revenue Refunding Bonds, Series 2002with an average interest rate of 4.7% in part, to current refund $48,830,000 of the Sales Tax RefundingRevenue Bonds, Series 1993 with an average interest rate of 5.7%. Net proceeds applicable to therefunding transaction of $50,375,966 (after payment of underwriting fees, insurance, and other issuancecosts) plus an additional $812,566 of 1993 Series sinking fund monies were irrevocably deposited withthe paying agent for the refunded bonds. The refunded bonds were subsequently fully redeemed onJanuary 1, 2003, the first available early redemption date. As a result, the 1993 Bonds are considered to

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be defeased and the liability for those bonds has been removed from the government-wide statement of net assets. By extending the payback period an additional 18 years, the debt service payments under the refunding portion will now exceed the old payments schedule by $29.4 million. However, the extended payout also creates a reduction of required debt service payments over the next 12 years by approximately $33 million. The difference between the present values of the old and new debt service payments resulted in an economic gain of approximately $950 thousand. The Civic Center Fund’s liability for the $4,650,000 Tourist Development Revenue Bonds, Series 1992 with an average rate of 5.8% was effectively converted to general government long-term debt through elimination of the liability via recording a transfer-in from the Tourist Promotion Fund. The County simultaneously issued $16,885,000 Tourist Development Refunding Revenue Bonds, Series 2002 with an average rate of 3.9% in part, to current refund the $4,650,000 Series 1992 bonds. Net proceeds applicable to the refunding transaction of $3,929,357 (after payment of underwriting fees, insurance, and other issuance costs) plus an additional $942,214 of 1992 Series sinking fund monies were irrevocably deposited with the paying agent for the refunded bonds. The refunded bonds were subsequently fully redeemed on December 1, 2002, the first available early redemption date. As a result, the 1992 Bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net assets. Although the cash flow outlays attributable to the new debt are approximately $88 thousand higher than the requirements of the old debt, the difference between the present values of the old and new debt service payments results in an economic gain of approximately $360 thousand. Long-Term Debt – Notes Line of Credit for Escambia County with SunTrust Bank allowed the Board to borrow up to $9,600,000 (through December 31, 1997) to finance certain capital projects. Amounts borrowed require monthly interest payments at the rate of 68% of LIBOR plus .20% per annum, adjusted quarterly. The interest rate at September 30, 2003 was .89%. Annual principal payments are required through 2006. The note is collateralized by the County’s electric franchise fee. Capital Improvement Revenue Bond Series 1997 allowed the County to borrow $10,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capital improvement projects. Pledged revenues toward payment of the loan are the electric franchise fees. The loan requires monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. At September 30, 2003, the rate was 1.25%. Capital Improvement Revenue Bond Series 1998 permitted borrowing $20,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loan are the infrastructure sales tax revenues. Repayments under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. At September 30, 2003, the rate was 1.25%. Capital Improvement Revenue Bonds Series 1999B and 1999C permitted the County to borrow $14,000,000 and $16,000,000, respectively, from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loans are the infrastructure sales tax revenues. Repayments under the loan require semi-annual interest payments (with the interest rate set at 4.5462%). Florida’s Toll Facilities Revolving Trust Fund (TFRTF) allowed the County, in 1996, to enter into a loan agreement with the State of Florida’s TFRTF. The TFRTF was created by the Florida Legislature to encourage the development and enhancement of the financial feasibility of revenue-producing road projects undertaken by local governmental entities. These interest-free advances are to be repaid either



be defeased and the liability for those bonds has been removed from the government-wide statement ofnet assets. By extending the payback period an additional 18 years, the debt service payments under therefunding portion will now exceed the old payments schedule by $29.4 million. However, the extendedpayout also creates a reduction of required debt service payments over the next 12 years byapproximately $33 million. The difference between the present values of the old and new debt servicepayments resulted in an economic gain of approximately $950 thousand.

The Civic Center Fund’s liability for the $4,650,000 Tourist Development Revenue Bonds, Series 1992with an average rate of 5.8% was effectively converted to general government long-term debt throughelimination of the liability via recording a transfer-in from the Tourist Promotion Fund. The Countysimultaneously issued $16,885,000 Tourist Development Refunding Revenue Bonds, Series 2002 with anaverage rate of 3.9% in part, to current refund the $4,650,000 Series 1992 bonds. Net proceedsapplicable to the refunding transaction of $3,929,357 (after payment of undenNriting fees, insurance, andother issuance costs) plus an additional $942,214 of 1992 Series sinking fund monies were irrevocablydeposited with the paying agent for the refunded bonds. The refunded bonds were subsequently fullyredeemed on December 1, 2002, the first available early redemption date. As a result, the 1992 Bondsare considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net assets. Although the cash flow outlays attributable to the new debt areapproximately $88 thousand higher than the requirements of the old debt, the difference between thepresent values of the old and new debt service payments results in an economic gain of approximately$360 thousand.

Long-Term Debt — Notes

Line of Credit for Escambia County with SunTrust Bank allowed the Board to borrow up to $9,600,000(through December 31, 1997) to finance certain capital projects. Amounts borrowed require monthlyinterest payments at the rate of 68% of LIBOR plus .20% per annum, adjusted quarterly. The interestrate at September 30, 2003 was .89%. Annual principal payments are required through 2006. The noteis collateralized by the County’s electric franchise fee.

Capital Improvement Revenue Bond Series 1997 allowed the County to borrow $10,000,000 from theGulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capitalimprovement projects. Pledged revenues toward payment of the loan are the electric franchise fees. Theloan requires monthly interest payments at variable rates equal to the PSA Municipal Market, plus amaximum 34 basis points. At September 30, 2003, the rate was 1.25%.

Capital Improvement Revenue Bond Series 1998 permitted borrowing $20,000,000 from the GulfBreeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towardspayment of the loan are the infrastructure sales tax revenues. Repayments under the loan requiremonthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basispoints. At September 30, 2003, the rate was 1.25%.

Capital Improvement Revenue Bonds Series 19998 and 1999C permitted the County to borrow$14,000,000 and $16,000,000, respectively, from the Gulf Breeze, Florida Capital Funding Program tofund additional capital projects. Pledged revenues towards payment of the loans are the infrastructuresales tax revenues. Repayments under the loan require semi-annual interest payments (with the interestrate set at 4.5462%).

Florida’s Toll Facilities Revolving Trust Fund (TFRTF) allowed the County, in 1996, to enter into aloan agreement with the State of Florida’s TFRTF. The TFRTF was created by the Florida Legislature toencourage the development and enhancement of the financial feasibility of revenue-producing roadprojects undertaken by local governmental entities. These interest-free advances are to be repaid either

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from proceeds from the project’s anticipated bond issue or by installment payments over a five year period beginning in the seventh year from the date of the advance. Payments began in 2003. These advances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of I-110). Capital Leases The Tax Collector and the Board of County Commissioners are obligated under lease-purchase agreements for purchases of software, heavy equipment and a new piece of chiller equipment. These leases qualify as capital leases for accounting purposes and are recorded at the present value of the future minimum lease payments at the inception of the lease. The acquired assets have been recorded in the governmental fund assets of Escambia County, Florida. Board of Tax County

Collector Commissioners Balance 10/01/02 $396,548 $0 Additions 0 6,081,839 Principal payments (89,777) 0

Balance 09/30/03 $306,771 $6,081,839

Future lease payments 2004 $107,566 $971,979 2005 107,566 1,208,411 2006 107,566 1,208,411

2007 8,964 1,208,411 2008 0 1,208,411 2009 - 2011 0 866,915 Total minimum lease payments 331,662 6,672,538 Less amount representing interest (24,891) (590,699)

Net minimum lease payments $306,771 $6,081,839

Refunding of Outstanding Debt in prior years permitted the County to defease certain special obligation and other revenue bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust account asset and liabilities are not included in the County’s financial statements. On September 30, 2003, five bond issues are outstanding with an aggregate principal amount of $85,205,000. Long-Term Debt – Arbitrage Liability represents the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. Pursuant to Section 148 (f) of the U.S. Internal Revenue Code, the County must rebate any excess to the United States Government. Arbitrage rebate, if any, is due and payable on each five-year anniversary of the respective bond issue. For the fiscal year ended September 30, 2003, there is no arbitrage rebate liability outstanding. Conduit Debt Obligations have been established for the sole purpose of providing financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities deemed



from proceeds from the project’s anticipated bond issue or by installment payments over a five yearperiod beginning in the seventh year from the date of the advance. Payments began in 2003. Theseadvances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of l-110).

Capital Leases

The Tax Collector and the Board of County Commissioners are obligated under lease-purchaseagreements for purchases of software, heavy equipment and a new piece of chiller equipment. Theseleases qualify as capital leases for accounting purposes and are recorded at the present value of thefuture minimum lease payments at the inception of the lease. The acquired assets have been recorded inthe governmental fund assets of Escambia County, Florida.

Board ofTax County

Collector CommissionersBalance 10/01/02 $396,548 $0Additions 0 6,081,839Principal payments (89,777) 0

Balance 09/30/03 $306,771 $6,081,839

Future lease payments2004 $107,566 $971,9792005 107,566 1,208,4112006 107,566 1,208,4112007 8,964 1,208,4112008 0 1,208,411

2009 - 2011 0 866,915Total minimum lease payments 331,662 6,672,538Less amount representing interest (24,891) (590,699)

Net minimum lease payments $306,771 $6,081,839

Refunding of Outstanding Debt in prior years permitted the County to defease certain special obligationand other revenue bonds by placing the proceeds of new bonds in irrevocable trusts to provide for allfuture debt service payments on the old bonds. Accordingly, the trust account asset and liabilities are notincluded in the County’s financial statements. On September 30, 2003, five bond issues are outstandingwith an aggregate principal amount of $85,205,000.

Long-Term Debt — Arbitrage Liability represents the excess of interest earned from the investment ofcertain debt proceeds and pledged revenues over the yield rate of the applicable debt. Pursuant toSection 148 (f) of the US Internal Revenue Code, the County must rebate any excess to the UnitedStates Government. Arbitrage rebate, if any, is due and payable on each five-year anniversary of therespective bond issue. For the fiscal year ended September 30, 2003, there is no arbitrage rebate liabilityoutstanding.

Conduit Debt Obligations have been established for the sole purpose of providing financial assistanceto private sector entities for the acquisition and construction of industrial and commercial facilities deemed

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to be in the public interest. Under the provisions of Chapter 159, Part II, Florida Statutes, the County has the right to issue Industrial Development Revenue bonds to provide such assistance. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Neither the County, the State nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2003, the outstanding conduit debt of Escambia County is $1,980,719,186. Landfill Closure and Postclosure Care Payable represents the accrued liability for closure and post-closure costs for the County’s landfills. Regulations require the County to cover landfills when they stop accepting waste and to perform certain maintenance and monitoring functions for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date the landfills stop accepting waste, the County reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill is the only site accepting waste. New closure estimates for the County’s landfills approved by State Authorities resulted in an approximate $10.8 million decrease in the Closure and Postclosure liability as of September 30, 2003. The new estimates were developed by an independent third-party engineering firm, which estimated the long-term care annual cost at a greatly reduced cost than had been estimated in the past. Initial estimates recorded in 1996 have been adjusted annually using the Florida Department of Environmental Protection’s published inflation factor. The most significant change is a reduction in water quality monitoring costs and the costs for landfill gas extraction. At year end, $8,789,328 was reported ($91,784 payable from restricted assets and $8,697,544 as long-term liability) as the landfill closure and postclosure care liability in the statement of net assets. This amount is based upon estimated costs to perform closure and postclosure care in 2003, determined from the most recently available engineering studies computed on the ratio of landfill capacity filled at year end to total estimated capacity (66.67%). The County will recognize the remaining estimated costs of closure and postclosure care of approximately $3,317,152 as the remaining estimated capacity is filled. The Perdido Landfill is expected to be filled between early 2005 and mid-2008. Actual cost may be higher due to inflation, changes in technology or changes in regulations. The County is required by state and federal laws and regulations to make annual contributions to a cash escrow account to accumulate funds for future closure and maintenance costs. The County is in compliance with these requirements at September 30, 2003 with restricted cash and investments of $2,970,429 held for these purposes. In the event closure escrows and interest earnings prove inadequate due to inflation, changes in technology or additional closure/postclosure care requirements, these costs may need to be covered by increased user charges. Restricted Net Assets at September 30, 2003 contain the following balances: Restricted Net Assets - Governmental Activities: General $831,885 Transportation and drainage $495,570 Debt service 8,186,593 Capital improvement program 15,973,748 Local option sales tax 6,686,156

Non-major governmental funds 1,805,842

$33,979,794



to be in the public interest. Under the provisions of Chapter 159, Part II, Florida Statutes, the County hasthe right to issue Industrial Development Revenue bonds to provide such assistance. The bonds aresecured by the property financed and are payable solely from payments received on the underlyingmortgage loans. Neither the County, the State nor any political subdivision thereof is obligated in anymanner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in theaccompanying financial statements. As of September 30, 2003, the outstanding conduit debt ofEscambia County is $1,980,719,186.

Landfill Closure and Postclosure Care Payable represents the accrued liability for closure and post-closure costs for the County’s landfills. Regulations require the County to cover landfills when they stopaccepting waste and to perform certain maintenance and monitoring functions for thirty years afterclosure. Although closure and postclosure care costs will be paid only near or after the date the landfillsstop accepting waste, the County reports a portion of these closure and postclosure care costs as anoperating expense in each period based on landfill capacity used as of each balance sheet date.Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill isthe only site accepting waste.

New closure estimates for the County’s landfills approved by State Authorities resulted in an approximate$10.8 million decrease in the Closure and Postclosure liability as of September 30, 2003. The newestimates were developed by an independent third-party engineering firm, which estimated the long-termcare annual cost at a greatly reduced cost than had been estimated in the past. Initial estimates recordedin 1996 have been adjusted annually using the Florida Department of Environmental Protection’spublished inflation factor. The most significant change is a reduction in water quality monitoring costs andthe costs for landfill gas extraction.

At year end, $8,789,328 was reported ($91,784 payable from restricted assets and $8,697,544 as long-term liability) as the landfill closure and postclosure care liability in the statement of net assets. Thisamount is based upon estimated costs to perform closure and postclosure care in 2003, determined fromthe most recently available engineering studies computed on the ratio of landfill capacity filled at year endto total estimated capacity (66.67%). The County will recognize the remaining estimated costs of closureand postclosure care of approximately $3,317,152 as the remaining estimated capacity is filled. ThePerdido Landfill is expected to be filled between early 2005 and mid-2008. Actual cost may be higher dueto inflation, changes in technology or changes in regulations.

The County is required by state and federal laws and regulations to make annual contributions to a cashescrow account to accumulate funds for future closure and maintenance costs. The County is incompliance with these requirements at September 30, 2003 with restricted cash and investments of$2,970,429 held for these purposes. In the event closure escrows and interest earnings proveinadequate due to inflation, changes in technology or additional closure/postclosure care requirements,these costs may need to be covered by increased user charges.

Restricted Net Assets at September 30, 2003 contain the following balances:

Restricted Net Assets- Governmental Activities:General $831,885Transportation and drainage $495,570Debt service 8,186,593Capital improvement program 15,973,748Local option sales tax 6,686,156

Non-major governmental funds 1,805,842

$33,979,794

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NOTE 4 – OTHER INFORMATION

The Risk Management program was established by the Board to self-insure certain types of claims against the Board of County Commissioners, Constitutional Officers, Civil Service Board and Santa Rosa Island Authority including losses related to theft, damage and destruction of assets; torts; errors and omissions; injuries to employees; and natural disasters. The following are the types of risks and coverage: Workers Compensation – self insured up to a limit of $350,000 per occurrence with excess limits to $1,000,000. Casualty and Property – Casualty limits are $100,000 per claim with a $200,000 aggregate. Property limits are $75,000 self insured retentions per occurrence with excess limits to $200,000,000. During the fiscal year ended September 30, 2003, the County had no significant reductions in insurance coverage from the prior year. In addition, there have been no settlements which exceeded the County’s insurance coverage for the last three fiscal years. The County currently reports all of its risk management activities, including claims liabilities, in the Internal Service Fund. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). The claims liabilities totaling $16,951,375 reported in the Internal Service Fund at September 30, 2003 are actuarially determined based on historical and current information regarding the Fund. Changes in the estimated liability for self-insured losses for the past two years are as follows: 2003 2002 Unpaid claims, beginning $13,389,823 $11,668,419 Claims incurred 7,544,771 6,638,443 Less: claims paid (3,983,219) (4,917,039)

Unpaid claims, ending $16,951,375 $13,389,823

Employee Retirement Systems and Pension Plans utilized by the County consists of a multiple employer, cost sharing defined benefit pension plan for most full-time County employees through the Florida Retirement System (FRS). The FRS, established in 1970 by Chapter 121, Florida Statutes is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of Retirement. Changes to the law can be made only by an act of the Florida Legislature. Rules governing the operation and administration of the system may be found in Chapter 60S of the Florida Administrative Code. The FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Florida Retirement System, 2639-C North Monroe Street, Tallahassee, Florida 32399-1560. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with 10 or more years of service, or to those employees who have at least 30 years of creditable service, regardless of age. Early retirement is available after 10 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation



NOTE 4 — OTHER INFORMATION

The Risk Management program was established by the Board to self-insure certain types of claimsagainst the Board of County Commissioners, Constitutional Officers, Civil Service Board and Santa RosaIsland Authority including losses related to theft, damage and destruction of assets; torts; errors andomissions; injuries to employees; and natural disasters. The following are the types of risks andcoverage:

Workers Compensation — self insured up to a limit of $350,000 per occurrence with excess limits to $1,000,000.

Casualty and Property— Casualty limits are $100,000 per claim with a $200,000 aggregate. Property limits are $75,000 self insuredretentions per occurrence with excess limits to $200,000,000.

During the fiscal year ended September 30, 2003, the County had no significant reductions in insurancecoverage from the prior year. In addition, there have been no settlements which exceeded the County’sinsurance coverage for the last three fiscal years.

The County currently reports all of its risk management activities, including claims liabilities, in the InternalService Fund. Liabilities are reported when it is probable that a loss has occurred and the amount of theloss can be reasonably estimated. Liabilities include an amount for claims that have been incurred butnot reported (IBNR). The claims liabilities totaling $16,951,375 reported in the Internal Service Fund atSeptember 30, 2003 are actuarially determined based on historical and current information regarding theFund.

Changes in the estimated liability for self-insured losses for the past two years are as follows:

2003 2002Unpaid claims, beginning $13,389,823 $11,668,419Claims incurred 7,544,771 6,638,443Less: claims paid (3,983,219) (4,917,039)

Unpaid claims, ending $16,951,375 $13,389,823

Employee Retirement S/stems and Pension Plans utilized by the County consists of a multipleemployer, cost sharing defined benefit pension plan for most full-time County employees through theFlorida Retirement System (FRS). The FRS, established in 1970 by Chapter 121, Florida Statutes iscontrolled by the State Legislature and administered by the State of Florida, Department ofAdministration, Division of Retirement. Changes to the law can be made only by an act of the FloridaLegislature. Rules governing the operation and administration of the system may be found in Chapter608 of the Florida Administrative Code. The FRS issues a publicly available financial report that includesfinancial statements and required supplementary information. The report may be obtained by writing tothe Florida Retirement System, 2639-0 North Monroe Street, Tallahassee, Florida 32399-1560.

The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefitsto plan members and beneficiaries. The FRS provides for vesting of benefits after six years of creditableservice. Normal retirement benefits are available to employees who retire at or after age 62 with 10 ormore years of service, or to those employees who have at least 30 years of creditable service, regardlessof age. Early retirement is available after 10 years of service with a 5% reduction of benefits for eachyear prior to the normal retirement age. Retirement benefits are based upon age, average compensation

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and years-of-service credit where average compensation is computed as the average of an individual’s five highest years of earnings. The Deferred Retirement Option Program (DROP) is a program under which an eligible member of the FRS may elect to participate, deferring receipt of retirement benefits while continuing employment with a FRS employer. The deferred monthly benefit accrues on behalf of the participant, plus interest compounded monthly, for the specified period of the DROP participation. Upon termination of employment, the participant receives the total DROP benefits and begins to receive previously determined retirement benefits. The FRS is noncontributory for employees and all contributions are made by participating FRS employers. Participating employer contributions are based upon state-wide rates established by the State of Florida. Average contribution rates for the year ended September 30, 2003 were as follows: regular employees, 6.17%, special risk employees, 16.64%, elected officials, 12.70%, senior management employees, 6.89%, and DROP participants, 9.11%. Contributions made are equal to the actuarially determined contribution requirements for each year and are funded on a pay-as-you-go basis. Contributions for the past three years were as follows: 2003 2002 2001 Primary government $9,048,365 $9,176,385 $10,231,059 Discretely presented component units: Civil Service Board 33,445 42,446 82,014 Santa Rosa Island Authority 83,667 82,027 101,696 Law Library Board 1,753 1,632 1,873

$9,167,230 $9,302,490 $10,416,642

Leasing Arrangements provide almost all of the revenues for the Santa Rosa Island Authority. The Authority leases the land on County-owned Santa Rosa Island under residential and commercial leases that typically run for a period of 99 years. Many of the 99-year leases have options to renew for another 99-year term. Many leases, particularly those for restaurants and concessions, are generally for a shorter period. Lease payments in future years are estimated to average approximately $2,697,800 per year. Construction Commitments - The County has active construction projects as of September 30, 2003 as follows: Engineering Services - Building $2,870,317 Engineering Services - Road Paving and Drainage 1,451,967 Engineering Services - Parks 99,859 Engineering Services - Solid Waste 679,754

Building Contract - Building Construction 16,712,925 Road Contract - Road Paving and Drainage 3,653,261 Construction Contract - Parks and Recreation 2,298,582 Construction Contract - Solid Waste 416,230 Miscellaneous Contracts 829,903

$29,012,798



and years-of—service credit where average compensation is computed as the average of an individual’sfive highest years of earnings.

The Deferred Retirement Option Program (DROP) is a program under which an eligible member of theFRS may elect to participate, deferring receipt of retirement benefits while continuing employment with aFRS employer. The deferred monthly benefit accrues on behalf of the participant, plus interestcompounded monthly, for the specified period of the DROP participation. Upon termination ofemployment, the participant receives the total DROP benefits and begins to receive previouslydetermined retirement benefits.

The FRS is noncontributory for employees and all contributions are made by participating FRSemployers. Participating employer contributions are based upon state-wide rates established by theState of Florida. Average contribution rates for the year ended September 30, 2003 were as follows:regular employees, 6.17%, special risk employees, 16.64%, elected officials, 12.70%, seniormanagement employees, 6.89%, and DROP participants, 9.11%.

Contributions made are equal to the actuarially determined contribution requirements for each year andare funded on a pay-as-you-go basis. Contributions for the past three years were as follows:

2003 2002 2001Primary government $9,048,365 $9,176,385 $10,231,059Discretely presented component units:

Civil Service Board 33,445 42,446 82,014Santa Rosa Island Authority 83,667 82,027 101,696Law Library Board 1,753 1,632 1,873

$9,167,230 $9,302,490 $10,416,642

Leasing Arrangements provide almost all of the revenues for the Santa Rosa Island Authority. TheAuthority leases the land on County-owned Santa Rosa Island under residential and commercial leasesthat typically run for a period of 99 years. Many of the 99-year leases have options to renew for another99-year term. Many leases, particularly those for restaurants and concessions, are generally for a shorterperiod. Lease payments in future years are estimated to average approximately $2,697,800 per year.

Construction Commitments - The County has active construction projects as of September 30, 2003 asfollows:

Engineering Services- Building $2,870,317Engineering Services- Road Paving and Drainage 1,451,967Engineering Services- Parks 99,859Engineering Services- Solid Waste 679,754

Building Contract - Building Construction 16,712,925Road Contract - Road Paving and Drainage 3,653,261Construction Contract - Parks and Recreation 2,298,582Construction Contract - Solid Waste 416,230Miscellaneous Contracts 829,903

$29,012,798

61



62

Of these commitments, $24,337,280 is reported in the governmental fund financial statements as reserved for encumbrances. The remaining $4,675,518 represents commitments in proprietary type funds which are not included in the financial statements in accordance with GAAP. These commitments are evidenced by signed purchase orders and contracts which were entered into prior to September 30, 2003. Other Commitments - The County has various non-construction contractual commitments at fiscal year end that will be re-appropriated in the new fiscal year. These commitments of $77,092 are included in Reserve for Encumbrances at September 30, 2003. The County contracts with Facility Management Corporation of Pensacola, c/o SMG for management and catering services for the Pensacola Civic Center. The management fee is $247,144 with an allowance for a consumer price index increase that is limited to three percent. The Santa Rosa Island Authority entered into various capital improvement contracts during the year. As of September 30, 2003, the Authority had outstanding commitments under these contracts totaling $286,855. On September 30, 2002 the Santa Rosa Island Authority’s Board of Directors approved an interlocal agreement with Escambia County in connection with certain plans for economic development, transportation and beach improvements at Pensacola Beach. By resolution approved by the Santa Rosa Island Authority Board, the Authority’s lease fee revenues are pledged for repayment of Tourist Development Refunding Revenue Bonds, Series 2002 and the Capital Improvement Revenue Bonds, Series 2002. The Authority is scheduled to make payments to Escambia County of at least $600,000 each year through 2032. Effective on August 31, 2001, the Sheriff entered into a cancelable agreement with a vendor to provide for the delivery of reasonably necessary medical care to individuals under the custody and control of the Sheriff. The agreement has an initial term of three years, and is renewable under terms for two additional one-year terms thereafter, unless either party delivers written notice of nonrenewal. Under this agreement, the Sheriff will pay the base price of $3,262,020 for the first twelve months, $3,451,944 for the second twelve months, and $3,622,224 for the third twelve months. The Sheriff has also agreed to pay a rate of $.69, $.72, and $.75 per inmate per day for those inmates assigned to the Work Camp for the first, second, and third twelve month periods. All financial considerations are based on predetermined inmate populations and adjustments to the payments will be based on variations from the monthly population. Medical service expense under this contract for the year ended September 30, 2003 was $3,728,022. The Sheriff entered into a cancelable agreement with a vendor to provide management, food, materials and supplies to feed the inmate population at the corrections facility and the Escambia County Jail. Food service expense under this contract for the year ended September 30, 2003 was $1,648,749. Operating leases for the Board of County Commissioners are for various spaces throughout the County containing minimum guaranteed rentals averaging $37,753 monthly. The Board of County Commissioners has the option to extend lease terms annually. Lease expense for the year ended September 30, 2003 was $453,039. The Civil Service Board leases office space under a three year lease containing a monthly minimum guaranteed rental of $4,018. Rental expense for a fiscal year ended September 30, 2003 was $93,674. The Tax Collector is obligated under operating leases for office space with noncancellable terms in excess of one year as of September 30, 2003. Rent expense for the year ended September 30, 2003 was $182,605.



Of these commitments, $24,337,280 is reported in the governmental fund financial statements asreserved for encumbrances. The remaining $4,675,518 represents commitments in proprietary typefunds which are not included in the financial statements in accordance with GAAP. These commitmentsare evidenced by signed purchase orders and contracts which were entered into prior to September 30,2003.

Other Commitments - The County has various non-construction contractual commitments at fiscal yearend that will be re-appropriated in the new fiscal year. These commitments of $77,092 are included inReserve for Encumbrances at September 30, 2003.

The County contracts with Facility Management Corporation of Pensacola, c/o SMG for management andcatering services for the Pensacola Civic Center. The management fee is $247,144 with an allowance fora consumer price index increase that is limited to three percent.

The Santa Rosa Island Authority entered into various capital improvement contracts during the year. Asof September 30, 2003, the Authority had outstanding commitments under these contracts totaling$286,855.

On September 30, 2002 the Santa Rosa Island Authority’s Board of Directors approved an interlocalagreement with Escambia County in connection with certain plans for economic development,transportation and beach improvements at Pensacola Beach. By resolution approved by the Santa RosaIsland Authority Board, the Authority’s lease fee revenues are pledged for repayment of TouristDevelopment Refunding Revenue Bonds, Series 2002 and the Capital Improvement Revenue Bonds,Series 2002. The Authority is scheduled to make payments to Escambia County of at least $600,000each year through 2032.

Effective on August 31, 2001, the Sheriff entered into a cancelable agreement with a vendor to provide forthe delivery of reasonably necessary medical care to individuals under the custody and control of theSheriff. The agreement has an initial term of three years, and is renewable under terms for two additionalone-year terms thereafter, unless either party delivers written notice of nonrenewal. Under thisagreement, the Sheriff will pay the base price of $3,262,020 for the first twelve months, $3,451,944 for thesecond twelve months, and $3,622,224 for the third twelve months. The Sheriff has also agreed to pay arate of $.69, $.72, and $.75 per inmate per day for those inmates assigned to the Work Camp for the first,second, and third twelve month periods. All financial considerations are based on predetermined inmatepopulations and adjustments to the payments will be based on variations from the monthly population.Medical service expense under this contract for the year ended September 30, 2003 was $3,728,022.

The Sheriff entered into a cancelable agreement with a vendor to provide management, food, materialsand supplies to feed the inmate population at the corrections facility and the Escambia County Jail. Foodservice expense under this contract for the year ended September 30, 2003 was $1,648,749.

Operating leases for the Board of County Commissioners are for various spaces throughout the Countycontaining minimum guaranteed rentals averaging $37,753 monthly. The Board of CountyCommissioners has the option to extend lease terms annually. Lease expense for the year endedSeptember 30, 2003 was $453,039.

The Civil Service Board leases office space under a three year lease containing a monthly minimumguaranteed rental of $4,018. Rental expense for a fiscal year ended September 30, 2003 was $93,674.

The Tax Collector is obligated under operating leases for office space with noncancellable terms inexcess of one year as of September 30, 2003. Rent expense for the year ended September 30, 2003was $182,605.

62



63

The Sheriff leases equipment under an agreement effective through January 30, 2006. Rental expense for the year ended September 30, 2003 was $85,800. Future minimum payments, as of September 30, 2003 for the Sheriff and Tax Collector, are as follows: Tax Collector Sheriff Year Amount Amount 2004 $208,672 $85,800

2005 212,068 67,800 2006 222,860 22,600 2007 226,256 0 2008 243,048 0 2009-2012 1,197,480 0

$2,310,384 $176,200

NOTE 5 – RELATED PARTY TRANSACTIONS During the fiscal year ended September 30, 2003, the Board of County Commissioners purchased operating supplies of $117,808 and fixed assets of $1,481,695 on behalf of the Sheriff’s office. These purchases are included in the Board of County Commissioner’s expenditures for the year. The fixed assets were transferred to the Sheriff during the year and are included in the Sheriff’s current year fixed asset additions.

NOTE 6 – CONTINGENT LIABILITIES The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County Attorney the resolution of these matters will not have a material adverse effect on the financial condition of the County. The County receives significant financial assistance from federal and state agencies primarily in the form of capital and operating grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by grantor agencies. Disallowed claims, if any, resulting from such audits may become liabilities of the County. However, in the opinion of management, disallowed claims, if any, will not have a material effect on the County’s financial statements.



The Sheriff leases equipment under an agreement effective through January 30, 2006. Rental expensefor the year ended September 30, 2003 was $85,800.

Future minimum payments, as of September 30, 2003 for the Sheriff and Tax Collector, are as follows:

TaxCollector Sheriff

Year Amount Amount2004 $208,672 $85,8002005 212,068 67,8002006 222,860 22,6002007 226,256 02008 243,048 0

2009-2012 1,197,480 0

$2,310,384 $176,200

NOTE 5 — RELATED PARTY TRANSACTIONS

During the fiscal year ended September 30, 2003, the Board of County Commissioners purchasedoperating supplies of $117,808 and fixed assets of $1,481,695 on behalf of the Sheriff’s office. Thesepurchases are included in the Board of County Commissioner’s expenditures for the year. The fixedassets were transferred to the Sheriff during the year and are included in the Sheriff's current year lixedasset additions.

NOTE 6 — CONTINGENT LIABILITIES

The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presentlydeterminable, in the opinion of the County Attorney the resolution of these matters will not have a materialadverse effect on the financial condition of the County.

The County receives significant financial assistance from federal and state agencies primarily in the formof capital and operating grants. The disbursement of funds received under these programs generallyrequires compliance with terms and conditions specified in the grant agreements and is subject to auditby grantor agencies. Disallowed claims, if any, resulting from such audits may become liabilities of theCounty. However, in the opinion of management, disallowed claims, if any, will not have a material effecton the County’s financial statements.

63

NON-MAJOR FINANCIAL STATEMENTS NON-MAJOR FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Mass Transit Fund - to account for the operation and maintenance of the Escambia County Transit System. Financing is provided from user fees, reimbursement from the City of Pensacola and an Urban Mass Transit Administration operating grant. Grant Projects – to account for financing provided from various State and Federal grants, such as Federal Emergency Management Agency (FEMA), Mosquito and Anthropod control, affordable housing programs and CDBG and HUD Housing programs. Tourist Promotion Fund - to account for revenues restricted for promotion, development and advertisement of Escambia County tourism. Financing is provided by a tourist development tax levied under Chapter 125.0104 Florida Statutes. Public Safety Programs – to account for revenues and costs associated with various programs such as the misdemeanor probation program, deputies training programs, law enforcement forfeiture proceedings, traffic control and parking violations, family mediation, fire protection and emergency 9-1-1 operations. Bob Sikes Toll Facilities Fund - to account for monies received from tolls, rates, fees, permits and passes for the operation, maintenance and debt service of the bridge, and other expenses for parks and recreation on Santa Rosa Island as approved by the Board of County Commissioners. Clerk’s Public Records Modernization Trust Fund- to account for monies collected according to Chapter 28.24, Florida Statutes to be used exclusively for equipment, personnel training, and technical assistance in modernizing the official records system and to pay for equipment and start up costs necessitated by a statewide recording system. Sheriff’s Programs – to account for the collection and expenditure of U.S. Treasury and U.S. Justice forfeiture sharing programs, as well as monies received from various Federal and State grants. This also includes the revenues and expenditures generated by the jail commissary. Community Redevelopment Agency (CRA) – to account for the revenues and expenditures for the redevelopment areas established by the County. General Trust Fund – to account for monies donated to the County for a specific purpose. CAPITAL PROJECTS FUNDS Federal Transit Administration Fund - to account for the cost of machinery, equipment, and office furniture for the Mass Transit activity for the County. Financing was provided by an Urban Mass Transportation Administration Grant (80%), State matching funds (10%), and Escambia County matching funds (10%). Road Construction – to account for local option gas taxes used for the acquisition and construction of new roads, special assessments to property owners for the specifically benefited properties and loan proceeds used for the engineering study on the feasibility of Interstate 110 extension.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Mass Transit Fund - to account for the operation and maintenance of the Escambia County Transit System.Financing is provided from user fees, reimbursement from the City of Pensacola and an Urban Mass TransitAdministration operating grant.

Grant Projects — to account for financing provided from various State and Federal grants, such as FederalEmergency Management Agency (FEMA), Mosquito and Anthropod control, affordable housing programs andCDBG and HUD Housing programs.

Tourist Promotion Fund -to account for revenues restricted for promotion, development and advertisement ofEscambia County tourism. Financing is provided by a tourist development tax levied under Chapter 125.0104Florida Statutes.

Public Safety Programs— to account for revenues and costs associated with various programs such as themisdemeanor probation program, deputies training programs, law enforcement forfeiture proceedings, trafficcontrol and parking violations, family mediation, fire protection and emergency 9-1-1 operations.

Bob Sikes Toll Facilities Fund - to account for monies received from tolls, rates, fees, permits and passes forthe operation, maintenance and debt service of the bridge, and other expenses for parks and recreation on SantaRosa Island as approved by the Board of County Commissioners.

Clerk’s Public Records Modernization Trust Fund- to account for monies collected according to Chapter28.24, Florida Statutes to be used exclusively for equipment, personnel training, and technical assistance inmodernizing the official records system and to pay for equipment and start up costs necessitated by a statewiderecording system.

Sheriff’s Programs— to account for the collection and expenditure of US. Treasury and US. Justice forfeituresharing programs, as well as monies received from various Federal and State grants. This also includes therevenues and expenditures generated by the jail commissary.

Community Redevelopment Agency (CRA) — to account for the revenues and expenditures for theredevelopment areas established by the County.

General Trust Fund — to account for monies donated to the County for a specific purpose.

CAPITAL PROJECTS FUNDS

Federal Transit Administration Fund - to account for the cost of machinery, equipment, and office furniturefor the Mass Transit activity for the County. Financing was provided by an Urban Mass TransportationAdministration Grant (80%), State matching funds (10%), and Escambia County matching funds (10%).

Road Construction — to account for local option gas taxes used for the acquisition and construction of newroads, special assessments to property owners for the specifically benefited properties and loan proceeds usedfor the engineering study on the feasibility of Interstate 110 extension.


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET Special Revenue Funds

Bob Clerk'sSEPTEMBER 30, 2003 Public Sikes Public Records

Mass Grant Tourist Safety Toll ModernizationAssets Transit Projects Promotion Programs Facilities Trust

Cash and cash equivalents $0 $1,457,638 $0 $0 $600 $0Equity in pooled cash and investments 175,928 1,944,929 5,065,427 4,107,447 3,240,534 357,124Investments 0 0 0 0 0 0Receivables (net of allowance for uncollectibles) 231,810 67,086 0 73,168 0 10Due from other funds 0 5,677 249 59,446 0 0Due from other governmental units 498,510 1,291,724 0 22,365 53,597 0Inventory 185,267 0 0 0 0 0 Total assets $1,091,515 $4,767,054 $5,065,676 $4,262,426 $3,294,731 $357,134

Liabilities and Fund Balances

Liabilities: Vouchers payable $187,455 $294,549 $327,804 $172,886 $484,239 $2,572 Contracts payable 0 30,713 0 0 53,160 0 Salaries and compensated absences payable 0 16,236 0 109,160 0 0 Due to other funds 331,623 27,808 0 2,483 0 0 Due to other governmental units 2,589 44,309 63,342 42,337 12,876 0 Other current liabilities 0 622,324 0 0 0 0 Total liabilities 521,667 1,035,939 391,146 326,866 550,275 2,572

Fund balances: Reserved for encumbrances 0 741,134 0 4,625 725,887 0 Reserved for inventory 185,267 0 0 0 0 0 Unreserved - undesignated 384,581 2,989,981 4,674,530 3,930,935 2,018,569 354,562 Total fund balances 569,848 3,731,115 4,674,530 3,935,560 2,744,456 354,562 Total liabilities and fund balances $1,091,515 $4,767,054 $5,065,676 $4,262,426 $3,294,731 $357,134

(Continued)

64


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET

SEPTEMBER 30, 2003

Assets

Special Revenue Funds

Cash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventory

Total assets


MassTransit

$0175,928

0231,810

0498,510185,267

GrantPro'ects

$1,457,6381,944,929

067,086

5,6771,291,724

0

TouristPromotion

$05,065,427

PublicSafety

Programs

$04,107,447

073,16859,44622,365

0

BobSikesToll

Facilities

$6003,240,534

000

53,5970

Clerk'sPublic RecordsModernization

M

$0357,124

010

OOO

Liabilities:Vouchers payableContracts payableSalaries and compensated absences payableDue to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

Fund balances:Reserved for encumbrancesReserved for inventoryUnreserved - undesignated

Total fund balancesTotal liabilities and fund balances

$1,091,515

$187,45500

331,6232,589

0

$4,767,054

$294,54930,71316,23627,80844,309

622,324

$5,065,676

$327,804000

63,3420

$4,262,426

$172,8860

109,1602,483

42,3370

$3,294,731

$484,23953,160

00

12,8760

$357,134

521,667 1,035,939 391,146 326,866 550,275

0185,267384,581

741,1340

2,989,981

00

4,674,530

4,6250

3,930,935

725,8870

2,018,569 354,562569,848 3,731,115 4,674,530 3,935,560 2,744,456 354,562

$1,091,515 $4,767,054

64

$5,065,676 $4,262,426 $3,294,731 $357,134(Continued)


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2003

Assets

Cash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventory Total assets


Liabilities: Vouchers payable Contracts payable Salaries and compensated absences payable Due to other funds Due to other governmental units Other current liabilities Total liabilities

Fund balances: Reserved for encumbrances Reserved for inventory Unreserved - undesignated Total fund balances Total liabilities and fund balances

Special Revenue Funds Capital Project Funds

Community General FederalSheriff's Redevelopment Trust Transit Road

Programs Agency Fund Administration Construction Totals

$732,028 $0 $0 $0 $0 $2,190,2660 437,947 146,673 214,591 1,820,278 17,510,878

200,000 0 0 0 0 200,00093,857 0 0 0 0 465,93126,516 93 0 0 0 91,98150,533 0 0 33,207 142,478 2,092,414

0 0 0 0 0 185,267$1,102,934 $438,040 $146,673 $247,798 $1,962,756 $22,736,737

$64,169 $10,515 $0 $0 $61,769 $1,605,958

0 0 0 0 15,101 98,9740 6,464 0 0 0 131,860

77,049 0 0 0 0 438,9630 3,473 0 0 0 168,926

203,557 0 0 0 0 825,881344,775 20,452 0 0 76,870 3,270,562

0 4,174 0 0 144,755 1,620,5750 0 0 0 0 185,267

758,159 413,414 146,673 247,798 1,741,131 17,660,333758,159 417,588 146,673 247,798 1,885,886 19,466,175

$1,102,934 $438,040 $146,673 $247,798 $1,962,756 $22,736,737

65


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2003

Assets


Cash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventory

Total assets


Sheriff'sPrograms

$732,0280

200,00093,85726,51650,533

0

CommunityRedevelopment

Agency

$0437,947

00

9300

GeneralTrustFund

$0146,673

0

FederalTransit

Administration

$0214,591

0O0

33,2070

RoadConstruction

$01 ,820,278

0O0

142,4780

Totals

$2,190,26617,510,878

200,000465,931

91,9812,092,414

185,267

Liabilities:Vouchers payableContracts payableSalaries and compensated absences payableDue to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

Fund balances:Reserved for encumbrancesReserved for inventoryUnreserved - undesignated

Total fund balancesTotal liabilities and fund balances

$1,102,934

$64,169

77,049

203,557

$438,040

$10,5150

6,4640

3,4730

00003$146,67 $247,798 $1,962,756 $22,736,737

$1,605,95898,974

131,860438,963168,926825,881

344,775 20,452 OO

OO

OO

O

OO

OO

OO

O

3,270,562

O0

758,159

4,1740

413,414

00

146,673

00

247,798

144,7550

1,741,131

1,620,575185,267

17,660,333758,159 417,588 146,673 247,798 1,885,886 19,466,175

$1,102,934 $438,040

65

$146,673 $247,798 $1,962,756 $22,736,737



COMBINING STATEMENT OF REVENUES, EXPENDITURES Special Revenue FundsAND CHANGES IN FUND BALANCES Bob Clerk's

Public Sikes Public RecordsYEAR ENDED SEPTEMBER 30, 2003 Mass Grant Tourist Safety Toll Modernization Sheriff's

Transit Projects Promotion Programs Facilities Trust ProgramsRevenues: Taxes $0 $0 $4,338,875 $0 $0 $0 $0 Intergovernmental 4,460,550 11,403,114 0 587,914 0 0 866,778 Charges for services 866,885 85,171 0 2,028,024 3,202,117 282,333 144,075 Fines and forfeitures 0 0 0 403,178 0 0 209,394 Investment income 7,429 69,629 53,674 82,721 44,137 5,497 3,746 Special assessments 0 0 0 6,894,892 0 0 0 Miscellaneous 74,128 362,526 0 25,588 1,493 0 496,614 Total revenues 5,408,992 11,920,440 4,392,549 10,022,317 3,247,747 287,830 1,720,607

Expenditures: Current: General government 0 402,089 0 34,166 1,452,896 376,655 0 Public safety 0 937,142 0 11,770,732 0 0 1,806,700 Physical environment 0 691,384 0 0 0 0 0 Transportation 6,522,736 359,746 0 0 0 0 0 Economic environment 0 8,312,214 1,861,033 0 0 0 0 Human services 0 1,040,949 0 1,485 0 0 0 Culture and recreation 0 320,304 0 0 0 0 0 Debt service Interest and fiscal charges 7,264 0 0 0 0 0 0 Total expenditures 6,530,000 12,063,828 1,861,033 11,806,383 1,452,896 376,655 1,806,700

Excess (deficiency) of revenue over (under) expenditures (1,121,008) (143,388) 2,531,516 (1,784,066) 1,794,851 (88,825) (86,093)

Other financing sources (uses): Bond(s) issued 0 0 6,779,357 0 0 0 0 Transfers in 1,200,262 17,957 0 2,650 0 0 0 Transfers out 0 (959,466) (7,589,568) (917,981) (1,972,425) 0 0 Net other financing sources (uses) 1,200,262 (941,509) (810,211) (915,331) (1,972,425) 0 0

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses 79,254 (1,084,897) 1,721,305 (2,699,397) (177,574) (88,825) (86,093)

Fund balances at beginning of year 490,594 4,816,012 2,953,225 6,634,957 2,922,030 443,387 844,252Fund balances at end of year $569,848 $3,731,115 $4,674,530 $3,935,560 $2,744,456 $354,562 $758,159

(Continued)

66



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES


Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt sen/iceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Bond(s) issued

Transfers inTransfers out

Net other financing sources (uses)

Excess (deficiency) of revenues and other sourcesover (under) expenditures and other uses

Fund balances at beginning of yearFund balances at end of year

Special Revenue Funds

MassTransit

$04,460,550

866,8850

7,4290

74,128

GrantPro'ects

$011,403,114

85,1710

69,6290

362,526

TouristPromotion

$4,338,875

PublicSafety

Programs

$0587,914

2,028,024403,178

82,7216,894,892

25,588

BobSikesToll

Facilities

$00

3,202,1170

44,1370

1,493

Clerk'sPublic RecordsModernization

M

$00

282,3330

5,49700

Sheriff‘sPrograms

$0866,778144,075209,394

3,7460

496,6145,408,992 11,920,440 4,392,549 10,022,317 3,247,747 287,830 1,720,607

000

6,522,736000

7,264

402,089937,142691,384359,746

8,312,2141,040,949

320,304

0

00

00

1,861,033

0

34,16611,770,732

1,452,896

00

00

00

0

376,655

00

00

00

01,806,700

0

00

00

06,530,000 12,063,828 1,861,033 11,806,383 1,452,896 376,655 1,806,700

(1,121,008) (143,388) 2,531,516 (1,784,066) 1,794,851 (88,825) (86,093)

01,200,262

0

017,957

(959,466)

6,779,3570

(7,589,568)

02,650

(917,981)

00

(1,972,425)1,200,262 (941,509) (810,211) (915,331) (1,972,425) 0

00

0

00

00

79,254 (1,084,897) 1,721,305 (2,699,397) (177,574) (88,825) (86,093)

490,594 4,816,012 2,953,225 6,634,957 2,922,030 443,387 844,252$569,848 $3,731,115 $4,674,530

66

$3,935,560 $2,744,456 $354,562 $758,159(Continued)



COMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES(Continued)


Revenues: Taxes Intergovernmental Charges for services Fines and forfeitures Investment income Special assessments Miscellaneous Total revenues

Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Interest and fiscal charges Total expenditures

Excess (deficiency) of revenue over (under) expenditures

Other financing sources (uses): Bond(s) issued Transfers in Transfers out Net other financing sources (uses)

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses



Community General FederalRedevelopment Trust Transit Road

Agency Fund Administration Construction Totals

$0 $0 $0 $1,555,078 $5,893,9530 20,814 551,987 0 17,891,1570 45,582 0 0 6,654,1870 0 0 0 612,572

5,277 1,611 3,380 34,787 311,8880 0 0 0 6,894,8920 0 0 0 960,349

5,277 68,007 555,367 1,589,865 39,218,998

490,894 0 0 0 2,756,7000 0 0 0 14,514,5740 1,036 0 0 692,4200 0 533,925 1,761,034 9,177,441

15,319 0 0 0 10,188,5660 0 0 0 1,042,4340 0 0 0 320,304

0 0 0 0 7,264506,213 1,036 533,925 1,761,034 38,699,703

(500,936) 66,971 21,442 (171,169) 519,295

0 0 0 0 6,779,357722,365 0 0 0 1,943,234

0 0 0 (383,441) (11,822,881)722,365 0 0 (383,441) (3,100,290)

221,429 66,971 21,442 (554,610) (2,580,995)

196,159 79,702 226,356 2,440,496 22,047,170$417,588 $146,673 $247,798 $1,885,886 $19,466,175

67



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES(Confinued)YEAR ENDED SEPTEMBER 30, 2003

Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt sen/iceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Bond(s) issued

Transfers inTransfers out

Net other financing sources (uses)

Excess (deficiency) of revenues and other sourcesover (under) expenditures and other uses



CommunityRedevelopment

Agency

GeneralTrustFund

$020,81445,582

1,611

FederalTransit

Administration

$0551,987

RoadConstruction

$1,555,078

Totals

$5,893,95317,891,1576,654,187

612,572311,888

6,894,892960,349

68,007 555,367 1,589,865 39,218,998

1,036

00

0

000

533,925000

0

000

1,761,034000

0

2,756,70014,514,574

692,4209,177,441

10,188,5661,042,434

320,304

7,264506,213 1,036 533,925 1,761,034 38,699,703

(500,936) 66,971 21,442 (171,169) 519,295

0722,365

0

00

(383,441)

6,779,3571,943,234

(11,822,881)722,365 0

00

0

00

00

(383,441) (3,100,290)

221 ,429 66,971 21,442 (554,610) (2,580,995)

196,159 79,702 226,356 2,440,496 22,047,170$417,588 $146,673 $247,798

67

$1,885,886 $19,466,175


MASS TRANSITSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $4,749,115 $4,753,839 $4,460,550 ($293,289) Charges for services 2,057,207 2,057,207 866,885 (1,190,322) Investment income 5,000 5,000 7,429 2,429 Miscellaneous 3,780 3,780 74,128 70,348 Total revenues 6,815,102 6,819,826 5,408,992 (1,410,834)

Expenditures: Current: Transportation 7,915,608 7,870,332 6,522,736 1,347,596 Debt service Interest and fiscal charges 0 50,000 7,264 42,736 Total expenditures 7,915,608 7,920,332 6,530,000 1,390,332

Excess (deficiency) of revenue over (under) expenditures (1,100,506) (1,100,506) (1,121,008) (20,502)

Other financing sources (uses): Transfers in 1,200,262 1,200,262 1,200,262 0 Total other financing sources (uses) 1,200,262 1,200,262 1,200,262 0

Net change in fund balances 99,756 99,756 79,254 (20,502)

Fund balances at beginning of year (99,756) (99,756) 490,594 590,350Fund balances (deficit) at end of year $0 $0 $569,848 $569,848

68


MASS TRANSITSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Intergovernmental $4,749,115 $4,753,839 $4,460,550 ($293,289)Charges for services 2,057,207 2,057,207 866,885 (1,190,322)Investment income 5,000 5,000 7,429 2,429Miscellaneous 3,780 3,780 74,128 70,348

Total revenues 6,815,102 6,819,826 5,408,992 (1,410,834)

Expenditures:Current:Transportation 7,915,608 7,870,332 6,522,736 1,347,596

Debt serviceInterest and fiscal charges 0 50,000 7,264 42,736Total expenditures 7,915,608 7,920,332 6,530,000 1,390,332

Excess (deficiency) of revenue over (under)expenditures (1,100,506) (1,100,506) (1,121,008) (20,502)

Other financing sources (uses):Transfers in 1,200,262 1,200,262 1,200,262 0

Total other financing sources (uses) 1,200,262 1,200,262 1,200,262 0

Net change in fund balances 99,756 99,756 79,254 (20,502)

Fund balances at beginning of year (99,756) (99,756) 490,594 590,350Fund balances (deficit) at end of year $0 $0 $569,848 $569,848

68


GRANT PROJECTSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $18,990,130 $24,609,902 $11,403,114 ($13,206,788) Charges for services 16,000 27,986 85,171 57,185 Investment income 102,269 102,269 69,629 (32,640) Miscellaneous 80,651 103,855 362,526 258,671 Total revenues 19,189,050 24,844,012 11,920,440 (12,923,572)

Expenditures: Current: General government 502,790 605,482 402,089 203,393 Public safety 595,502 2,282,108 937,142 1,344,966 Physical environment 597,369 1,629,891 691,384 938,507 Transportation 0 538,000 359,746 178,254 Economic environment 16,889,750 17,709,430 8,312,214 9,397,216 Human services 966,163 2,084,060 1,040,949 1,043,111 Culture and recreation 305,021 450,021 320,304 129,717 Total expenditures 19,856,595 25,298,992 12,063,828 13,235,164

Excess (deficiency) of revenue over (under) expenditures (667,545) (454,980) (143,388) 311,592

Other financing sources (uses): Transfers in 51,957 51,957 17,957 (34,000) Transfers out (350,000) (781,449) (959,466) (178,017) Total other financing sources (uses) (298,043) (729,492) (941,509) (212,017)

Net change in fund balances (965,588) (1,184,472) (1,084,897) 99,575

Fund balances at beginning of year 965,588 1,184,472 4,816,012 3,631,540Fund balances (deficit) at end of year $0 $0 $3,731,115 $3,731,115

69


GRANT PROJECTSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesInvestment incomeMiscellaneous

Total revenues



Total expenditures


Other financing sources (uses):Transfers inTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$18,990,13016,000

102,26980,651

$24,609,90227,986

102,269103,855

$11,403,11485,17169,629

362,526

($13,206,788)57,185

(32,640)258,671

19,189,050 24,844,012 11,920,440 (12,923,572)

502,790595,502597,369

016,889,750

966,163305,021

605,4822,282,1081,629,891

538,00017,709,4302,084,060

450,021

402,089937,142691,384359,746

8,312,2141,040,949

320,304

203,3931,344,966

938,507178,254

9,397,2161,043,111

129,71719,856,595 25,298,992 12,063,828 13,235,164

(667,545) (454,980) (143,388) 311,592

51,957(350,000)

51,957(781,449)

17,957(959,466)

(34,000)(178,017)

(298,043) (729,492) (941,509) (212,017)

(965,588) (1,184,472) (1,084,897) 99,575

965,588 1,184,472 4,816,012 3,631,540$0 $0

69

$3,731,115 $3,731,115


TOURIST PROMOTION FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $4,118,302 $4,118,302 $4,338,875 $220,573 Investment income 0 32,000 53,674 21,674 Miscellaneous 32,000 0 0 0 Total revenues 4,150,302 4,150,302 4,392,549 242,247

Expenditures: Current: Economic environment 1,886,693 3,027,710 1,861,033 1,166,677 Culture and recreation 2,784,462 2,276,462 0 2,276,462 Debt service Interest and fiscal charges 0 18,227 0 18,227 Total expenditures 4,671,155 5,322,399 1,861,033 3,461,366

Excess (deficiency) of revenue over (under) expenditures (520,853) (1,172,097) 2,531,516 3,703,613

Other financing sources (uses): Bond(s) issued 0 868,227 6,779,357 5,911,130 Transfers out (1,444,593) (2,294,593) (7,589,568) (5,294,975) Total other financing sources (uses) (1,444,593) (1,426,366) (810,211) 616,155



70


TOURIST PROMOTION FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesInvestment incomeMiscellaneous

Total revenues


Economic environmentCulture and recreation

Debt serviceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Bond(s) issuedTransfers out




OriginalBudget

$4,118,3020

32,0004,150,302

1,886,6932,784,462

04,671,155

(520,853)

0(1,444,593)(1,444,593)

(1,965,446)

1,965,446$0

FinalBudget

$4,118,30232,000

04,150,302

3,027,7102,276,462

18,2275,322,399

(1,172,097)

868,227(2,294,593)(1,426,366)

(2,598,463)

2,598,463$0

Actual

$4,338,87553,674

04,392,549

1,861,0330

01,861,033

2,531,516

6,779,357(7,589,568)

(810,211)

1,721,305

2,953,225$4,674,530

70


Positive(Negative)

$220,57321,674

0242,247

1,166,6772,276,462

18,2273,461,366

3,703,613

5,911,130(5,294,975)

616,155

4,319,768

354,762$4,674,530


PUBLIC SAFETY PROGRAMSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $540,000 $540,000 $587,914 $47,914 Charges for services 1,630,053 1,958,553 2,028,024 69,471 Fines and forfeitures 338,500 247,000 403,178 156,178 Investment income 363,300 363,300 82,721 (280,579) Special assessments 6,840,014 6,840,014 6,894,892 54,878 Miscellaneous 181,000 181,000 25,588 (155,412) Total revenues 9,892,867 10,129,867 10,022,317 (107,550)

Expenditures: Current: General government 143,514 161,658 34,166 127,492 Public safety 14,817,809 15,116,448 11,770,732 3,345,716 Human services 119,808 198,264 1,485 196,779 Total expenditures 15,081,131 15,476,370 11,806,383 3,669,987


Other financing sources (uses): Transfers in 2,650 2,650 2,650 0 Transfers out (917,981) (917,981) (917,981) 0 Total other financing sources (uses) (915,331) (915,331) (915,331) 0

Net change in fund balances (6,103,595) (6,261,834) (2,699,397) 3,562,437


71


PUBLIC SAFETY PROGRAMSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues


General governmentPublic safetyHuman servicesTotal expenditures


Other financing sources (uses):Transfers inTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$540,0001,630,053

338,500363,300

6,840,014181,000

$540,0001,958,553

247,000363,300

6,840,014181,000

$587,9142,028,024

403,17882,721

6,894,89225,588

$47,91469,471

156,178(280,579)

54,878(155,412)

9,892,867 10,129,867 10,022,317 (107,550)

143,51414,817,809

119,808

161,65815,116,448

198,264

34,16611,770,732

1,485

127,4923,345,716

196,77915,081,131 15,476,370 11,806,383 3,669,987

(5,188,264) (5,346,503) (1,784,066) 3,562,437

2,650(917,981)

2,650(917,981)

2,650(917,981)

00

(915,331) (915,331) (915,331) 0

(6,103,595) (6,261,834) (2,699,397) 3,562,437

6,103,595 6,261,834 6,634,957 373,123$0 $0 $3,935,560 $3,935,560


BOB SIKES TOLL FACILITIESSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $2,752,083 $2,752,083 $3,202,117 $450,034 Investment income 15,000 15,000 44,137 29,137 Miscellaneous 0 0 1,493 1,493 Total revenues 2,767,083 2,767,083 3,247,747 480,664

Expenditures: Current: General government 3,878,690 3,578,931 1,452,896 2,126,035 Total expenditures 3,878,690 3,578,931 1,452,896 2,126,035

Excess (deficiency) of revenue over (under) expenditures (1,111,607) (811,848) 1,794,851 2,606,699

Other financing sources (uses): Transfers out 0 (1,972,677) (1,972,425) 252 Total other financing sources (uses) 0 (1,972,677) (1,972,425) 252

Net change in fund balances (1,111,607) (2,784,525) (177,574) 2,606,951


72


BOB SIKES TOLL FACILITIESSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:Charges for servicesInvestment incomeMiscellaneous

Total revenues


General governmentTotal expenditures


Other financing sources (uses):Transfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$2,752,08315,000

0

$2,752,08315,000

0

$3,202,11744,137

1,493

$450,03429,137

1,4932,767,083 2,767,083 3,247,747 480,664

3,878,690 3,578,931 1,452,896 2,126,0353,878,690 3,578,931 1,452,896 2,126,035

(1,111,607) (811,848) 1,794,851 2,606,699

0 (1,972,677) (1,972,425) 2520 (1,972,677) (1,972,425) 252

(1,111,607) (2,784,525) (177,574) 2,606,951

1,111,607 2,784,525 2,922,030 137,505$0 $0 $2,744,456

72

$2,744,456


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $251,600 $282,334 $282,333 ($1) Investment income 8,400 5,505 5,497 (8) Total revenues 260,000 287,839 287,830 (9)

Expenditures: Current: General government 260,000 376,664 376,655 9 Total expenditures 260,000 376,664 376,655 9

Excess (deficiency) of revenue over (under) expenditures 0 (88,825) (88,825) 0

Net change in fund balances 0 (88,825) (88,825) 0

Fund balances at beginning of year 0 88,825 443,387 354,562Fund balances (deficit) at end of year $0 $0 $354,562 $354,562

73


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:Charges for servicesInvestment income

Total revenues


General governmentTotal expenditures




OriginalBudget

FinalBudget Actual


Positive(Negative)

$251,6008,400

260,000

260,000

$282,3345,505

287,839

376,664

$282,3335,497

287,830

376,655

($1)(8)(9)

260,000 376,664 376,655

(88,825) (88,825) 0

(88,825) (88,825) 0

88,825 443,387 354,562$0

73

$354,562 $354,562


SHERIFF'S PROGRAMSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $1,272,688 $866,778 ($405,910) Charges for services 0 93,770 144,075 50,305 Fines and forfeitures 0 344,781 209,394 (135,387) Investment income 0 3,747 3,746 (1) Miscellaneous 0 452,869 496,614 43,745 Total revenues 0 2,167,855 1,720,607 (447,248)

Expenditures: Current: Public safety 0 2,347,998 1,806,700 541,298 Total expenditures 0 2,347,998 1,806,700 541,298

Excess (deficiency) of revenue over (under) expenditures 0 (180,143) (86,093) 94,050

Net change in fund balances 0 (180,143) (86,093) 94,050

Fund balances at beginning of year 0 844,252 844,252 0Fund balances (deficit) at end of year $0 $664,109 $758,159 $94,050

74


SHERIFF'S PROGRAMSSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesFines and forfeituresInvestment incomeMiscellaneous

Total revenues


Public safetyTotal expenditures




OriginalBudget

$

00

00

00

FinalBudget

$1,272,68893,770

344,7813,747

452,8692,167,855

Actual

$866,778144,075209,394

3,746496,614

1,720,607


Positive(Negative)

($405,910)50,305

(135,387)(1)

43,745(447,248)

2,347,998 1,806,700 541,2982,347,998

(180,143)

1,806,700

(86,093)

541,298

94,050

(180,143) (86,093) 94,050

844,252 844,252 0$664,109

74

$758,159 $94,050


COMMUNITY REDEVELOPMENT AGENCYSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Investment income $0 $0 $5,277 $5,277 Total revenues 0 0 5,277 5,277

Expenditures: Current: General government 640,165 768,074 490,894 277,180 Economic environment 0 81,449 15,319 66,130 Total expenditures 640,165 849,523 506,213 343,310

Excess (deficiency) of revenue over (under) expenditures (640,165) (849,523) (500,936) 348,587

Other financing sources (uses): Transfers in 558,838 722,365 722,365 0 Total other financing sources (uses) 558,838 722,365 722,365 0

Net change in fund balances (81,327) (127,158) 221,429 348,587

Fund balances at beginning of year 81,327 127,158 196,159 69,001Fund balances (deficit) at end of year $0 $0 $417,588 $417,588

75


COMMUNITY REDEVELOPMENT AGENCYSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Investment income $0 $0 $5,277 $5,277

Total revenues 0 0 5,277 5,277


General government 640,165 768,074 490,894 277,180Economic environment 0 81,449 15,319 66,130Total expenditures 640,165 849,523 506,213 343,310

Excess (deficiency) of revenue over (under)expenditures (640,165) (849,523) (500,936) 348,587

Other financing sources (uses):Transfers in 558,838 722,365 722,365 0

Total other financing sources (uses) 558,838 722,365 722,365 0

Net change in fund balances (81,327) (127,158) 221,429 348,587

Fund balances at beginning of year 81,327 127,158 196,159 69,001Fund balances (deficit) at end of year $0 $0 $417,588 $417,588

75


DEBT SERVICE FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $600,000 $593,333 ($6,667) Investment income 0 0 125,271 125,271 Miscellaneous 0 0 354,340 354,340 Total revenues 0 600,000 1,072,944 472,944

Expenditures: Debt service Principal retirement 11,692,834 63,916,369 10,516,833 53,399,536 Interest and fiscal charges 5,339,941 6,499,041 7,179,133 (680,092) Total expenditures 17,032,775 70,415,410 17,695,966 52,719,444


Other financing sources (uses): Transfers in 16,902,025 69,526,419 66,866,617 (2,659,802) Payments made to refund bonds (10,728,930) (10,570,689) (53,857,245) (43,286,556) Total other financing sources (uses) 6,173,095 58,955,730 13,009,372 (45,946,358)

Net change in fund balances (10,859,680) (10,859,680) (3,613,650) 7,246,030


76


DEBT SERVICE FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment incomeMiscellaneous

Total revenues

Expenditures:Debt service



Other financing sources (uses):Transfers inPayments made to refund bonds




OriginalBudget

FinalBudget Actual


Positive(Negative)

$600,000 $593,3330 125,2710 354,340

($6,667)125,271354,340

00

00

600,000 1,072,944 472,944

11,692,8345,339,941

63,916,369 10,516,8336,499,041 7,179,133

53,399,536(680,092)

17,032,775 70,415,410 17,695,966 52,719,444

(17,032,775) (69,815,410) (16,623,022) 53,192,388

16,902,025(10,728,930)

69,526,419 66,866,617(10,570,689) (53,857,245)

(2,659,802)(43,286,556)

6,173,095 58,955,730 13,009,372 (45,946,358)

(10,859,680) (10,859,680) (3,613,650) 7,246,030

10,859,680 10,859,680 11,800,243 940,563$0 $0 $8,186,593

76

$8,186,593


CAPITAL IMPROVEMENT PROGRAMSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $516,526 $516,526 $300,649 ($215,877) Investment income 10,000 10,000 952,513 942,513 Total revenues 526,526 526,526 1,253,162 726,636

Expenditures: Capital improvements 2,481,641 125,333,411 35,964,500 89,368,911 Debt service Principal retirement 121,498 657,350 0 657,350 Interest and fiscal charges 26,322 2,569,542 2,152,270 417,272 Total expenditures 2,629,461 128,560,303 38,116,770 90,443,533


Other financing sources (uses): Capital lease(s) issued 0 41,380,658 1,907,323 (39,473,335) Bond(s) issued 0 84,983,441 123,253,235 38,269,794 Transfers in 351,340 887,192 766,825 (120,367) Transfers out 0 0 (50,375,966) (50,375,966) Total other financing sources (uses) 351,340 127,251,291 75,551,417 (51,699,874)

Net change in fund balances (1,751,595) (782,486) 38,687,809 39,470,295

Fund balances at beginning of year 1,751,595 782,486 112,486 (670,000)Fund balances (deficit) at end of year $0 $0 $38,800,295 $38,800,295

77


CAPITAL IMPROVEMENT PROGRAMSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment income

Total revenues

Expenditures:Capital improvementsDebt service



Other financing sources (uses):Capital Iease(s) issuedBond(s) issuedTransfers inTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$516,52610,000

$516,52610,000

$300,649952,513

($215,877)942,513

526,526 526,526 1,253,162 726,636

2,481,641

121,49826,322

125,333,411

657,3502,569,542

35,964,500

02,152,270

89,368,911

657,350417,272

2,629,461 128,560,303 38,116,770 90,443,533

(2,102,935) (128,033,777) (36,863,608) 91,170,169

00

351,3400

41,380,65884,983,441

887,1920

1,907,323123,253,235

766,825(50,375,966)

(39,473,335)38,269,794

(120,367)(50,375,966)

351,340 127,251,291 75,551,417 (51,699,874)

(1,751,595) (782,486) 38,687,809 39,470,295

1,751,595 782,486 112,486 (670,000)$0 $0

77

$38,800,295 $38,800,295


FEDERAL TRANSIT ADMINISTRATIONSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $1,336,097 $1,452,897 $551,987 ($900,910) Investment income 0 0 3,380 3,380 Total revenues 1,336,097 1,452,897 555,367 (897,530)

Expenditures: Capital improvements 1,336,097 1,452,897 533,925 918,972 Total expenditures 1,336,097 1,452,897 533,925 918,972

Excess (deficiency) of revenue over (under) expenditures 0 0 21,442 21,442

Net change in fund balances 0 0 21,442 21,442

Fund balances at beginning of year 0 0 226,356 226,356Fund balances (deficit) at end of year $0 $0 $247,798 $247,798

78


FEDERAL TRANSIT ADMINISTRATIONSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment income

Total revenues

Expenditures:Capital improvements

Total expenditures




OriginalBudget

FinalBudget Actual


Positive(Negative)

$1,336,0970

$1,452,8970

$551,9873,380

($900,910)3,380

1,336,097 1,452,897 555,367 (897,530)

1,336,097 1,452,897 533,925 918,9721,336,097 1,452,897 533,925 918,972

21,442 21,442

21,442 21,442

226,356 226,356

78

$247,798 $247,798


ROAD CONSTRUCTIONSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $1,644,322 $1,644,322 $1,555,078 ($89,244) Investment income 50,000 50,000 34,787 (15,213) Special assessments 0 0 0 0 Total revenues 1,694,322 1,694,322 1,589,865 (104,457)

Expenditures: Capital improvements 4,157,590 3,900,994 1,761,034 2,139,960 Total expenditures 4,157,590 3,900,994 1,761,034 2,139,960

Excess (deficiency) of revenue over (under) expenditures (2,463,268) (2,206,672) (171,169) 2,035,503

Other financing sources (uses): Transfers out 0 0 (383,441) (383,441) Total other financing sources (uses) 0 0 (383,441) (383,441)



79


ROAD CONSTRUCTIONSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Taxes $1,644,322 $1,644,322 $1,555,078 ($89,244)Investment income 50,000 50,000 34,787 (15,213)Special assessments 0 O 0 0

Total revenues 1,694,322 1,694,322 1,589,865 (104,457)

Expenditures:Capital improvements 4,157,590 3,900,994 1,761 ,034 2,139,960

Total expenditures 4,157,590 3,900,994 1,761,034 2,139,960

Excess (deficiency) of revenue over (under)expenditures (2,463,268) (2,206,672) (171,169) 2,035,503

Other financing sources (uses):Transfers out 0 0 (383,441) (383,441)

Total other financing sources (uses) 0 0 (383,441) (383,441)



79


LOCAL OPTION SALES TAXSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $28,275,655 $28,275,655 $29,642,829 $1,367,174 Intergovernmental 0 18,836 300,479 281,643 Charges for services 0 0 10,215 10,215 Investment income 1,000,000 1,000,000 490,608 (509,392) Miscellaneous 0 2,837,961 15,011 (2,822,950) Total revenues 29,275,655 32,132,452 30,459,142 (1,673,310)

Expenditures: Capital improvements 45,964,503 52,946,141 20,346,416 32,599,725 Debt service Principal retirement 927,100 927,100 0 927,100 Interest and fiscal charges 156,580 156,580 114,861 41,719 Total expenditures 47,048,183 54,029,821 20,461,277 33,568,544

Excess (deficiency) of revenue over (under) expenditures (17,772,528) (21,897,369) 9,997,865 31,895,234

Other financing sources (uses): Note proceeds 0 0 483,128 483,128 Proceeds from sale of capital assets 0 0 4,351,106 4,351,106 Transfers out (9,208,080) (10,058,080) (9,269,675) 788,405 Total other financing sources (uses) (9,208,080) (10,058,080) (4,435,441) 5,622,639


Fund balances at beginning of year 26,980,608 31,955,449 30,732,963 (1,222,486)Fund balances (deficit) at end of year $0 $0 $36,295,387 $36,295,387

80


LOCAL OPTION SALES TAXSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesIntergovernmentalCharges for servicesInvestment incomeMiscellaneous

Total revenues

Expenditures:Capital improvementsDebt service



Other financing sources (uses):Note proceedsProceeds from sale of capital assetsTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$28,275,65500

1,000,0000

$28,275,65518,836

01,000,0002,837,961

$29,642,829300,479

10,215490,608

15,011

$1,367,174281,643

10,215(509,392)

(2,822,950)29,275,655 32,132,452 30,459,142 (1,673,310)

45,964,503

927,100156,580

52,946,141

927,100156,580

20,346,416

0114,861

32,599,725

927,10041,719

47,048,183 54,029,821 20,461,277 33,568,544

(17,772,528) (21,897,369) 9,997,865 31,895,234

00

(9,208,080)

00

(10,058,080)

483,1284,351,106(9,269,675)

483,1284,351,106

788,405(9,208,080) (10,058,080) (4,435,441) 5,622,639

(26,980,608) (31,955,449) 5,562,424 37,517,873

26,980,608 31,955,449 30,732,963 (1,222,486)$0 $0

80

$36,295,387 $36,295,387

NON-MAJOR PROPRIETARY FUNDS Inspection Fund - to account for building inspection services provided to the residents of Escambia County. All activities necessary to provide such services are accounted for in this fund. Ambulance Fund - to account for the cost of emergency medical services provided in Escambia County. All activities necessary to provide such services are accounted for in this fund.

NON-MAJOR PROPRIETARY FUNDS

Inspection Fund - to account for building inspection services provided to the residents of Escambia County. Allactivities necessary to provide such services are accounted for in this fund.

Ambulance Fund - to account for the cost of emergency medical services provided in Escambia County. Allactivities necessary to provide such services are accounted for in this fund.


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2003

ASSETS Inspection Ambulance TotalsCurrent assets: Cash and cash equivalents $500 $150 $650 Equity in pooled cash and investments 1,600,083 2,069,145 3,669,228 Receivables (net of allowance for uncollectibles) 777 2,571,830 2,572,607 Inventory 0 141,658 141,658 Other current assets 0 210 210 Total current assets 1,601,360 4,782,993 6,384,353

Noncurrent assets: Restricted assets Cash and cash equivalents 132,569 0 132,569 Capital assets: Land and other non-depreciable assets 0 6,443 6,443 Capital assets (net of depreciation) 111,155 2,253,924 2,365,079 Total noncurrent assets 243,724 2,260,367 2,504,091 Total assets 1,845,084 7,043,360 8,888,444

LIABILITIESCurrent liabilities: Vouchers payable 12,375 33,737 46,112 Salaries, benefits and compensated absences payable 58,386 115,854 174,240 Due to other governmental units 2,729 4,622 7,351 Total current liabilities 73,490 154,213 227,703

Current liabilities payable from restricted assets: Customer deposits 132,569 0 132,569 Total payable from restricted assets 132,569 0 132,569

Non-current liabilities: Compensated absences 438,541 375,082 813,623 Total non-current liabilities 438,541 375,082 813,623 Total liabilities 644,600 529,295 1,173,895

NET ASSETSInvested in capital assets, net of related debt 111,155 2,260,367 2,371,522RestrictedUnrestricted 1,089,329 4,253,698 5,343,027 Total net assets $1,200,484 $6,514,065 $7,714,549

81


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2003


Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)InventoryOther current assets


Noncurrent assets:Restricted assets

Cash and cash equivalentsCapital assets:

Land and other non-depreciable assetsCapital assets (net of depreciation)Total noncurrent assets

Total assets

LIABILITIESCurrent liabilities:Vouchers payableSalaries, benefits and compensated absences payableDue to other governmental unitsTotal current liabilities

Current liabilities payable from restricted assets:Customer depositsTotal payable from restricted assets

Non-current liabilities:Compensated absencesTotal non-current liabilities

Total liabilities

NET ASSETSInvested in capital assets, net of related debtRestrictedUnrestricted

Total net assets

Inspection

$5001,600,083

777OO

Ambulance

$1502,069,1452,571,830

141,658210

Totals

$6503,669,2282,572,607

141,658210

1,601,360 4,782,993 6,384,353

132,569

0111,155

0

6,4432,253,924

132,569

6,4432,365,079

243,724 2,260,367 2,504,0911,845,084 7,043,360 8,888,444

12,37558,386

2,729

33,737115,854

4,622

46,112174,240

7,35173,490 154,213 227,703

132,569 132,569132,569 132,569

438,541 375,082 813,623438,541 375,082 813,623644,600 529,295 1,173,895

111,155

1,089,329

2,260,367

4,253,698

2,371,522

5,343,027$1 ,200,484

81

$6,514,065 $7,714,549


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

YEAR ENDED SEPTEMBER 30, 2003 Inspection Ambulance Totals

Operating revenues: Licenses and permits $2,515,838 $0 $2,515,838 Charges for services 171,110 10,726,646 10,897,756 Fines and forfeitures 2,104 0 2,104 Miscellaneous income 17,810 121,103 138,913 Total operating revenues 2,706,862 10,847,749 13,554,611

Operating expenses: Personal services 2,609,396 5,310,899 7,920,295 Contractual services 22,426 303,602 326,028 Materials and supplies 42,085 426,832 468,917 Travel and vehicle costs 140,474 11,689 152,163 Depreciation 69,424 561,511 630,935 Bad debts 0 3,624,830 3,624,830 Memberships, dues and subscriptions 7,625 10,104 17,729 Insurance and bonds 13,757 93,982 107,739 Communications and freight services 42,008 63,710 105,718 Utilities 26,380 1,270 27,650 Maintenance 13,931 334,267 348,198 Rentals and leases 92,640 11,306 103,946 Advertising and promotion 0 3,430 3,430 Miscellaneous 137,268 319,330 456,598 Total operating expenses 3,217,414 11,076,762 14,294,176 Operating income (loss) (510,552) (229,013) (739,565)

Non-operating revenues (expenses): Interest income 28,948 30,742 59,690 Gain (loss) on disposal of assets (67,334) (9,110) (76,444) Other income 0 21,097 21,097 Total non-operating revenues (expenses) (38,386) 42,729 4,343

Income (loss) before contributions and transfers (548,938) (186,284) (735,222)

Capital contributions 1,999 534,770 536,769Transfers out 0 (155,000) (155,000) Total other financing sources (uses) 1,999 379,770 381,769

Change in net assets (546,939) 193,486 (353,453)

Net assets - beginning 1,747,423 6,320,579 8,068,002Net assets - ending $1,200,484 $6,514,065 $7,714,549

82


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS


Operating revenues:Licenses and permitsCharges for servicesFines and forfeituresMiscellaneous income

Total operating revenues

Operating expenses:Personal servicesContractual servicesMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesAdvertising and promotionMiscellaneous

Total operating expensesOperating income (loss)

Non-operating revenues (expenses):Interest incomeGain (loss) on disposal of assetsOther income

Total non-operating revenues (expenses)

Income (loss) before contributions and transfers

Capital contributionsTransfers out


Change in net assets

Net assets - beginningNet assets - ending

Inspection

$2,515,838171,110

2,10417,810

Ambulance

$010,726,646

0121,103

Totals

$2,515,83810,897,756

2,104138,913

2,706,862 10,847,749 13,554,611

2,609,39622,42642,085

140,47469,424

07,625

13,75742,00826,38013,93192,640

0137,268

5,310,899303,602426,832

11,689561,511

3,624,83010,10493,98263,710

1,270334,267

11,3063,430

319,330

7,920,295326,028468,917152,163630,935

3,624,83017,729

107,739105,71827,650

348,198103,946

3,430456,598

3,217,414 11,076,762 14,294,176(510,552) (229,013) (739,565)

28,948(67,334)

0

30,742(9,110)

21,097

59,690(76,444)21 ,097

(38,386) 42,729 4,343

(548,938) (186,284) (735,222)

1,9990

534,770(155,000)

536,769(155,000)

1,999 379,770 381,769

(546,939) 193,486 (353,453)

1,747,423 6,320,579 8,068,002

82

$1,200,484 $6,514,065 $7,714,549


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

YEAR ENDED SEPTEMBER 30, 2003Inspection Ambulance Totals

Cash flows from operating activities: Cash received from customers $2,700,936 $10,284,390 $12,985,326 Cash payments to suppliers for goods and services (555,570) (5,218,721) (5,774,291) Cash payments to employees for services (2,549,765) (5,286,088) (7,835,853) Other non-operating revenues (expenses) 0 121,899 121,899 Net cash provided by (used in) operating activities (404,399) (98,520) (502,919)

Cash flows from noncapital financing activities: Transfers out 0 (155,000) (155,000) Net cash provided by (used in) noncapital financing activities 0 (155,000) (155,000)

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (985) (44,517) (45,502) Proceeds from sale of assets 1,395 0 1,395 Net cash used in capital and related financing activities 410 (44,517) (44,107)

Cash flow from investing activities: Interest on investments 28,948 30,742 59,690 Net cash provided by investing activities 28,948 30,742 59,690

Net increase (decrease) in cash & cash equivalents (375,041) (267,295) (642,336)

Cash and cash equivalents at beginning of year 2,108,193 2,336,590 4,444,783Cash and cash equivalents at end of year $1,733,152 $2,069,295 $3,802,447

Non-cash investing, capital and financing activities: Capital contributions $1,999 $534,770 $536,769

(Continued)

83




Cash flows from operating activities:Cash received from customersCash payments to suppliers for goods and servicesCash payments to employees for servicesOther non-operating revenues (expenses)


Cash flows from noncapital financing activities:Transfers out

Net cash provided by (used in) noncapital financing activities

Cash flows from capital and related financing activities:Acquisition and construction of capital assetsProceeds from sale of assets

Net cash used in capital and related financing activities

Cash flow from investing activities:Interest on investments

Net cash provided by investing activities

Net increase (decrease) in cash & cash equivalents

Cash and cash equivalents at beginning of yearCash and cash equivalents at end of year

Non-cash investing, capital and financing activities:Capital contributions

83

Inspection

$2,700,938(555,570)

(2,549,765)0

Ambulance

$10,284,390(5,218,721)(5,286,088)

121,899

Totals

$12,985,328(5,774,291)(7,835,853)

121,899(404,399) (98,520) (502,919)

(155,000) (155,000)(155,000) (155,000)

(985)1,395

(44,517)0

(45,502)1,395

410 (44,517) (44,107)

28,948 30,742 59,69028,948 30,742 59,690

(375,041) (287,295) (642,338)

2,108,193 2,336,590 4,444,783$1,733,152

$1,999

$2,069,295

$534,770

$3,802,447

$536,769(Continued)


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Continued)

YEAR ENDED SEPTEMBER 30, 2003Inspection Ambulance Totals

Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet: Current assets: Cash and cash equivalents $500 $150 $650 Equity in pooled cash and investments 1,600,083 2,069,145 3,669,228 Restricted assets: Equity in pooled cash and investments 132,569 0 132,569 Total cash and cash equivalents at end of year $1,733,152 $2,069,295 $3,802,447

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) ($510,552) ($229,013) ($739,565) Other non-operating revenues 0 796 796 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 69,424 561,511 630,935 Provision for uncollectible accounts 0 3,624,830 3,624,830 (Increase) decrease in assets: Accounts receivable (339) (4,068,887) (4,069,226) Inventory 0 (6,068) (6,068) Prepaid expense 0 1,801 1,801 Increase (decrease) in liabilities: Vouchers payable 7,015 (7,733) (718) Salaries and benefits payable 11,328 21,876 33,204 Compensated absences 48,303 2,935 51,238 Deposits (5,587) 0 (5,587) Due to other governments (23,991) (568) (24,559)

Net cash provided by (used in) operating activities ($404,399) ($98,520) ($502,919)

84



(Continued)


Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet:Current assets:

Cash and cash equivalentsEquity in pooled cash and investments

Restricted assets:Equity in pooled cash and investmentsTotal cash and cash equivalents at end of year

Reconciliation of operating income (loss) to net cash provided by(used in) operating activities:

Operating income (loss)Other non-operating revenuesAdjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:DepreciationProvision for uncollectible accounts

(Increase) decrease in assets:Accounts receivableInventoryPrepaid expense

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesDepositsDue to other governments


84

Inspection

$5001,600,083

132,569

Ambulance

$1502,069,145

0

Totals

$6503,669,228

132,569$1,733,152

($510,552)0

69,424

(339)

7,01511,32848,303(5,587)

(23,991)

$2,069,295

($229,013)796

561,5113,624,830

(4,068,887)(6,068)1,801

(7,733)21,876

2,9350

(568)

$3,802,447

($739,565)796

630,9353,624,830

(4,069,226)(6,068)1,801

(718)33,20451,238(5,587)

(24,559)

($404,399) ($98,520) ($502,919)

FIDUCIARY FUNDS Clerk of the Circuit Court: Agency Fund: To account for the collection and disbursement of deposits which are required to be filed with the court pending the outcome of civil suits; to account for the collection and disbursement of deposits received by the Clerk from the State and County governments for payment of citizen services; and to account for the collection and disbursement of cash bonds, overpayments and miscellaneous items. Sheriff: Agency Fund: To account for the collection and disbursement of monies posted by individuals upon arrest and held by the Sheriff until final disposition by the court; to account for the collection and disbursement of monies forfeited by court order, that are designated to be used by the Sheriff for purposes other than meeting normal operating needs; to account for the collection and disbursement of monies deposited by insurance companies and attorneys awaiting civil execution, and monies obtained from Sheriff’s sale of abandoned and confiscated property, various court levies, writs of execution and miscellaneous receipts; to account for monies received from auction of unclaimed property held by the Sheriff; and to account for bond and purge monies and monies held on behalf of the inmates. Tax Collector: Agency Fund: To account for the collection and disbursement of ad valorem taxes, tangible personal property taxes and occupational licenses, as agent for other governments; and to account for the collection and disbursement of automobile registration, sales tax, boat licenses, hunting and fishing licenses and property appraiser fees, as agent for other governments.

FIDUCIARY FUNDS

Clerk of the Circuit Court:

Agency Fund:

To account for the collection and disbursement of deposits which are required to be filed with the court pendingthe outcome of civil suits; to account for the collection and disbursement of deposits received by the Clerk fromthe State and County governments for payment of citizen services; and to account for the collection anddisbursement of cash bonds, overpayments and miscellaneous items.

Sheriff:

Agency Fund:

To account for the collection and disbursement of monies posted by individuals upon arrest and held by theSheriff until final disposition by the court; to account for the collection and disbursement of monies forfeited bycourt order, that are designated to be used by the Sheriff for purposes other than meeting normal operatingneeds; to account for the collection and disbursement of monies deposited by insurance companies andattorneys awaiting civil execution, and monies obtained from Sheriff’s sale of abandoned and confiscatedproperty, various court levies, writs of execution and miscellaneous receipts; to account for monies receivedfrom auction of unclaimed property held by the Sheriff; and to account for bond and purge monies and moniesheld on behalf of the inmates.

Tax Collector:

Agency Fund:

To account for the collection and disbursement of ad valorem taxes, tangible personal property taxes andoccupational licenses, as agent for other governments; and to account for the collection and disbursement ofautomobile registration, sales tax, boat licenses, hunting and fishing licenses and property appraiser fees, asagent for other governments.


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2003

Clerk Sheriff Tax CollectorGeneral General General

Assets Agency Funds Agency Funds Agency Funds Total

Cash and cash equivalents $2,468,084 $171,530 $3,322,110 $5,961,724Receivables (net of allowance for uncollectibles) 14,758 0 44,944 59,702Due from other funds 0 0 432,563 432,563Due from other governments 508 0 0 508 Total assets $2,483,350 $171,530 $3,799,617 $6,454,497

Liabilities

Payable to others $194,101 $0 $695,591 $889,692Due to other funds 0 61,631 459,443 521,074Due to other governmental units 0 2,984 2,644,583 2,647,567Other current liabilities 2,289,249 106,915 0 2,396,164 Total liabilities $2,483,350 $171,530 $3,799,617 $6,454,497

85


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2003

Clerk Sheriff Tax CollectorGeneral General General

Assets Aqencv Funds Aqencv Funds Aqencv Funds Total

Cash and cash equivalents $2,468,084 $171,530 $3,322,110 $5,961,724Receivables (net of allowance for uncollectibles) 14,758 0 44,944 59,702Due from other funds 0 0 432,563 432,563Due from other governments 508 0 0 508

Total assets $2,483,350 $171,530 $3,799,617 $6,454,497

Liabilities

Payable to others $194,101 $0 $695,591 $889,692Due to other funds 0 61,631 459,443 521,074Due to other governmental units 0 2,984 2,644,583 2,647,567Other current liabilities 2,289,249 106,915 0 2,396,164

Total liabilities $2,483,350 $171,530 $3,799,617 $6,454,497

85


STATEMENT OF CHANGES IN ASSETS AND LIABILITIESAGENCY FUNDS


Balance BalanceOctober 1, September 30,

2002 Additions Deductions 2003Clerk of the Circuit Court: Assets: Cash and cash equivalents $3,190,305 $24,853,573 $25,575,794 $2,468,084 Accounts receivable (net of allowance for uncollectibles) 14,877 78,885 79,004 14,758 Due from other governments 11,036 508 11,036 508 Total assets $3,216,218 $24,932,966 $25,665,834 $2,483,350

Liabilities: Payable to others $231,506 $11,744,842 $11,782,247 $194,101 Due to other governmental units 13 148,460 148,473 0 Other current liabilities 2,984,699 13,113,623 13,809,073 2,289,249 Total liabilities $3,216,218 $25,006,925 $25,739,793 $2,483,350

Sheriff: Assets: Cash and cash equivalents $157,896 $4,004,061 $3,990,427 $171,530 Total assets $157,896 $4,004,061 $3,990,427 $171,530

Liabilities: Due to other funds $27,867 $61,631 $27,867 $61,631 Due to other governmental units 0 2,984 0 2,984 Other current liabilities 130,029 3,569,245 3,592,359 106,915 Total liabilities $157,896 $3,633,860 $3,620,226 $171,530

(Continued)

86





2002 Additions Deductions 2003Clerk of the Circuit Court:

Assets:Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other governments

Total assets

Liabilities:Payable to othersDue to other governmental unitsOther current liabilities

Total liabilities

Sheriff:Assets:

Cash and cash equivalentsTotal assets

Liabilities:Due to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

$3,190,305

14,87711,036

$24,853,573

78,885508

$25,575,794

79,00411,036

$2,468,084

14,758508

$3,216,218

$231,50613

2,984,699

$24,932,966

$11,744,842148,460

13,113,623

$25,665,834

$11,782,247148,473

13,809,073

$2,483,350

$194,1010

2,289,249$3,216,218

$157,896

$25,006,925

$4,004,061

$25,739,793

$3,990,427

$2,483,350

$171,530$157,896

$27,8670

130,029

$4,004,061

$61 ,6312,984

3,569,245

$3,990,427

$27,8670

3,592,359

$171,530

$61,6312,984

106,915$157,896

86

$3,633,860 $3,620,226 $171 ,530(Continued)





2002 Additions Deductions 2003Tax Collector: Assets: Cash and cash equivalents $2,435,325 $295,633,627 $294,746,842 $3,322,110 Accounts receivable (net of allowance for uncollectibles) 48,585 2,843,027 2,846,668 44,944 Due from other funds 0 38,189,758 37,757,195 432,563 Total assets $2,483,910 $336,666,412 $335,350,705 $3,799,617

Liabilities: Payable to others $107,186 $9,479,806 $8,891,401 $695,591 Due to other funds 34,841 40,058,437 39,633,835 459,443 Due to other governmental units 2,341,883 233,564,250 233,261,550 2,644,583 Total liabilities $2,483,910 $283,102,493 $281,786,786 $3,799,617

Total Agency Funds: Assets: Cash and cash equivalents $5,783,526 $324,491,261 $324,313,063 $5,961,724 Accounts receivable (net of allowance for uncollectibles) 63,462 2,921,912 2,925,672 59,702 Due from other funds 0 38,189,758 37,757,195 432,563 Due from other governmental units 11,036 508 11,036 508 Total assets $5,858,024 $365,603,439 $365,006,966 $6,454,497

Liabilities: Payable to others $338,692 $21,224,648 $20,673,648 $889,692 Due to other funds 62,708 40,120,068 39,661,702 521,074 Due to other governmental units 2,341,896 233,715,694 233,410,023 2,647,567 Other current liabilities 3,114,728 16,682,868 17,401,432 2,396,164 Total liabilities $5,858,024 $311,743,278 $311,146,805 $6,454,497

87




Balance BalanceOctober 1,

Tax Collector:Assets:

Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other funds

Total assets

Liabilities:Payable to othersDue to other fundsDue to other governmental units

Total liabilities

Total Agency Funds:Assets:

Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other fundsDue from other governmental units

Total assets

Liabilities:Payable to othersDue to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

2002 Additions DeductionsSeptember 30,

2003

$2,435,325

48,5850

$295,633,627

2,843,02738,189,758

$294,746,842

2,846,66837,757,195

$3,322,110

44,944432,563

$2,483,910

$107,18634,841

2,341,883

$336,666,412

$9,479,80640,058,437

233,564,250

$335,350,705

$8,891,40139,633,835

233,261,550

$3,799,617

$695,591459,443

2,644,583$2,483,910

$5,783,526

63,4620

11,036

$283,102,493

$324,491,261

2,921,91238,189,758

508

$281,786,786

$324,313,063

2,925,67237,757,195

11,036

$3,799,617

$5,961,724

59,702432,563

508$5,858,024

$338,69262,708

2,341,8963,114,728

$365,603,439

$21,224,64840,120,068

233,715,69416,682,868

$365,006,966

$20,673,64839,661,702

233,410,02317,401,432

$6,454,497

$889,692521,074

2,647,5672,396,164

$5,858,024

87

$311,743,278 $311,146,805 $6,454,497

STATISTICAL SECTION Statistical schedules, which are unaudited, differ from financial statements because they usually cover more than one fiscal year and may present nonaccounting data. These schedules reflect social and economic data, and financial trends of the government. The following tables did not have any activity for the last ten fiscal years:

1. Ratio of net general bonded debt to assessed value and net bonded debt per capita;

2. Computation of legal debt margin;

3. Ratio of annual debt service expenditures for general bonded debts for total general expenditures; and

4. Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds.

STATISTICAL SECTION

Statistical schedules, which are unaudited, differ from financial statements because they usually cover morethan one fiscal year and may present nonaccounting data. These schedules reflect social and economic data,and financial trends of the government.

The following tables did not have any activity for the last ten fiscal years:

1. Ratio of net general bonded debt to assessed value and net bonded debt per capita;

2. Computation of legal debt margin;

3. Ratio of annual debt service expenditures for general bonded debts for total general expenditures; and

4. Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds.

TABLE 1


GENERAL GOVERNMENT REVENUE BY SOURCE (1)

Last Ten Fiscal Years

(Unaudited)

LicensesFiscal and Intergovernmental Charges for Fines and Miscellaneousyear Taxes permits revenue services forfeits revenue Total

1994 $57,421,274 $333,966 $36,906,497 $6,832,316 $3,565,513 ($493,577) $104,565,9891995 $64,157,004 $485,414 $41,520,459 $8,492,067 $4,107,372 $12,319,027 $131,081,3431996 $67,069,414 $279,527 $50,897,177 $8,713,330 $5,112,759 $12,128,764 $144,200,9711997 $69,225,980 $681,430 $42,991,749 $12,073,181 $2,402,829 $12,015,262 $139,390,4311998 $72,317,428 $633,420 $46,798,921 $11,925,100 $2,213,993 $11,561,838 $145,450,7001999 $79,510,677 $669,113 $53,397,616 $12,905,312 $2,535,876 $13,828,485 $162,847,0792000 $83,793,166 $383,474 $48,304,693 $14,498,900 $2,003,118 $18,337,066 $167,320,4172001 $91,894,364 $619,375 $47,965,336 $14,646,341 $2,294,324 $17,255,612 $174,675,3522002 $97,942,585 $438,953 $52,329,254 $14,768,171 $2,118,861 $15,780,817 $183,378,6412003 $102,895,288 $447,824 $49,481,896 $16,301,403 $2,497,410 $15,743,616 $187,367,437

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds.

88

Fiscalyear

1994199519961997199819992000200120022003


Taxes

$57,421,274$64,157,004$67,069,414$69,225,980$72,317,428$79,510,677$83,793,166$91,894,364$97,942,585

$102,895,288

Licensesand

permits

$333,966$485,414$279,527$681,430$633,420$669,1 13$383,474$619,375$438,953$447,824



Intergovernmentalrevenue

$36,906,497$41,520,459$50,897,177$42,991,749$46,798,921$53,397,616$48,304,693$47,965,336$52,329,254$49,481,896

(Unaudited)

88

Charges forservices

$6,832,316$8,492,067$8,713,330

$12,073,181$11,925,100$12,905,312$14,498,900$14,646,341$14,768,171$16,301,403

GENERAL GOVERNMENT REVENUE BY SOURCE (1)

Fines andforfeits

$3,565,513$4,107,372$5,112,759$2,402,829$2,213,993$2,535,876$2,003,118$2,294,324$2,118,861$2,497,410

Miscellaneousrevenue

($493,577)$12,319,027$12,128,764$12,015,262$11,561,838$13,828,485$18,337,066$17,255,612$15,780,817$15,743,616

TABLE 1

Total

$104,565,989$131,081,343$144,200,971$139,390,431$145,450,700$162,847,079$167,320,417$174,675,352$183,378,641$187,367,437

TABLE 2ESCAMBIA COUNTY, FLORIDA

GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)


(Unaudited)

Fiscal General Public Physical Economic Human Culture and Debtyear government safety environment Transportation environment services recreation service Total

1994 $29,714,425 $42,868,793 $2,553,771 $13,094,899 $4,915,401 $4,533,402 $1,494,682 $10,127,016 $109,302,3891995 $32,666,905 $48,782,783 $3,151,893 $16,045,640 $6,966,389 $4,951,022 $616,004 $9,320,550 $122,501,1861996 $41,386,816 $47,428,730 $3,076,171 $20,723,028 $3,539,719 $4,446,676 $2,526,853 $8,425,553 $131,553,5461997 $41,931,953 $53,229,976 $1,376,393 $17,064,791 $6,109,967 $4,206,141 $1,447,311 $8,251,510 $133,618,0421998 $43,895,993 $55,123,516 $1,458,898 $18,378,723 $6,917,201 $3,719,108 $1,391,876 $8,996,629 $139,881,9441999 $48,925,697 $65,783,177 $1,576,278 $19,770,574 $7,063,034 $3,714,999 $1,836,727 $7,905,654 $156,576,1402000 $50,169,585 $66,788,679 $927,820 $23,475,899 $9,414,742 $4,054,694 $3,098,851 $12,151,499 $170,081,7692001 $54,808,217 $73,761,542 $999,564 $24,614,330 $9,901,839 $3,844,566 $2,222,289 $12,547,222 $182,699,5692002 $56,090,652 $80,333,498 $1,314,708 $18,834,814 $10,082,849 $3,885,068 $2,326,902 $16,157,238 $189,025,7292003 $57,690,227 $86,097,005 $1,489,933 $21,321,977 $10,369,211 $3,780,390 $2,247,779 $17,841,567 $200,838,089


89

Fiscalyear

Generalgovernment

Publicsafety


GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)

Physicalenvironment


(Unaudited)

TransportationEconomic

environmentHuman

servicesCulture andrecreation

Debtservice

TABLE 2

Total

1994199519961997199819992000200120022003

$29,714,425$32,666,905$41,386,816$41 ,931 ,953$43,895,993$48,925,697$50,169,585$54,808,217$56,090,652$57,690,227

$42,868,793$48,782,783$47,428,730$53,229,976$55,123,516$65,783,177$66,788,679$73,761,542$80,333,498$86,097,005

$2,553,771$3,151,893$3,076,171$1,376,393$1,458,898$1,576,278

$927,820$999,564

$1,314,708$1,489,933

$13,094,899$16,045,640$20,723,028$17,064,791$18,378,723$19,770,574$23,475,899$24,614,330$18,834,814$21,321,977

$4,915,401$6,966,389$3,539,719$6,109,967$6,917,201$7,063,034$9,414,742$9,901,839

$10,082,849$10,369,211


89

$4,533,402$4,951,022$4,446,676$4,206,141$3,719,108$3,714,999$4,054,694$3,844,566$3,885,068$3,780,390

$1,494,682$616,004

$2,526,853$1,447,311$1,391,876$1,836,727$3,098,851$2,222,289$2,326,902$2,247,779

$10,127,016$9,320,550$8,425,553$8,251,510$8,996,629$7,905,654

$12,151,499$12,547,222$16,157,238$17,841,567

$109,302,389$122,501,186$131,553,546$133,618,042$139,881,944$156,576,140$170,081,769$182,699,569$189,025,729$200,838,089


SCHEDULE OF PROPERTY TAXES LEVIED AND COLLECTED


(Unaudited)

Percent of Percent ofDelinquent total tax Outstanding delinquent

Fiscal Property taxes Property taxes Percent (%) tax Total tax collections delinquent taxes toyear levied collected collected collections collections to tax levy taxes tax levy

1994 $49,380,762 $47,384,625 95.96% $167,713 $47,552,338 96.3% $677,062 1.4%1995 $51,535,469 $49,326,462 95.71% $205,491 $49,531,953 96.1% $286,875 0.6%1996 $51,327,079 $48,996,226 95.46% $171,394 $49,167,620 95.8% $258,444 0.5%1997 $52,878,465 $50,661,508 95.81% $179,773 $50,841,281 96.1% $256,930 0.5%1998 $55,227,269 $53,041,240 96.04% $136,922 $53,178,162 96.3% $260,741 0.5%1999 $63,784,341 $61,340,967 96.17% $178,305 $61,519,272 96.4% $334,503 0.5%2000 $67,988,129 $65,012,144 95.62% $328,331 $65,340,474 96.1% $507,901 0.7%2001 $74,441,707 $70,920,865 95.27% $684,398 $71,605,263 96.2% $595,133 0.8%2002 $79,338,248 $76,446,757 96.36% $0 $76,446,757 96.4% $401,843 0.5%2003 $82,944,351 $79,837,671 96.25% $477,485 $80,315,156 96.8% $414,621 0.5%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does not include the School Board.

90

Fiscalyear

1994199519961997199819992000200120022003

Property taxeslevied

$49,380,762$51,535,469$51,327,079$52,878,465$55,227,269$63,784,341$67,988,129$74,441,707$79,338,248$82,944,351


SCHEDULE OF PROPERTY TAXES LEVIED AND COLLECTED

Property taxescollected

$47,384,625$49,326,462$48,996,226$50,661,508$53,041,240$61,340,967$65,012,144$70,920,865$76,446,757$79,837,671

Percent (%)collected

95.96%95.71%95.46%95.81%96.04%96.17%95.62%95.27%96.36%96.25%


(Unaudited)

Delinquenttax

collections

$167,713$205,491$171,394$179,773$136,922$178,305$328,331$684,398

$0$477,485

Total taxcollections

$47,552,338$49,531,953$49,167,620$50,841,281$53,178,162$61,519,272$65,340,474$71,605,263$76,446,757$80,315,156

Percent oftotal tax

collectionsto tax levy

96.3%96.1%95.8%96.1%96.3%96.4%96.1%96.2%96.4%96.8%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does notinclude the School Board.

90

Outstandingdelinquent

taxes

$677,062$286,875$258,444$256,930$260,741$334,503$507,901$595,133$401,843$414,621

TABLE 3

Percent ofdelinquenttaxes totax levy

1.4%0.6%0.5%0.5%0.5%0.5%0.7%0.8%0.5%0.5%


ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY


(Unaudited)

Real Property Personal Property Total Ratio of totalFiscal Estimated Estimated Centrally Estimated assessed toyear Assessed value actual value Assessed value actual value assessed Assessed value actual value total estimated

1994 $5,532,772,190 $8,325,541,400 $1,345,367,160 $1,583,760,760 $13,822,880 $6,891,962,230 $9,923,125,040 69.45%1995 $5,686,309,150 $8,494,180,430 $1,347,101,120 $1,594,848,070 $17,847,500 $7,051,257,770 $10,106,876,000 69.77%1996 $5,933,495,090 $8,753,826,710 $1,383,706,390 $1,631,463,540 $13,732,100 $7,330,933,580 $10,399,022,350 70.50%1997 $6,071,636,210 $8,907,368,300 $1,450,253,010 $1,733,169,700 $16,435,970 $7,538,325,190 $10,656,973,970 70.74%1998 $6,898,837,840 $9,980,580,030 $1,483,806,610 $1,782,792,320 $26,030,830 $8,408,675,280 $11,789,403,180 71.32%1999 $7,602,283,900 $11,046,665,930 $1,563,845,812 $1,864,294,192 $21,403,570 $9,187,553,282 $12,932,363,692 71.04%2000 $8,796,084,360 $12,428,794,460 $1,667,787,720 $1,952,344,370 $19,933,910 $10,483,805,990 $14,401,072,740 72.80%2001 $9,525,466,400 $13,106,468,240 $1,688,806,660 $1,870,757,698 $16,822,410 $11,231,095,470 $14,994,048,348 74.90%2002 $9,894,481,610 $13,632,390,600 $1,760,295,384 $1,942,601,673 $18,318,380 $11,673,095,374 $15,593,310,653 74.86%2003 $10,792,411,230 $13,315,119,120 $1,780,386,101 $2,083,218,610 $25,607,560 $12,598,404,891 $15,423,945,290 81.68%

Source: Escambia County Property Appraiser

91

Fiscalyear

1994199519961997199819992000200120022003

Real Property

Assessed value

$5,532,772,190$5,686,309,150$5,933,495,090$6,071 ,636,210$6,898,837,840$7,602,283,900$8,796,084,360$9,525,466,400$9,894,481,610

$10,792,411,230

Estimatedactual value

$8,325,541,400$8,494,180,430$8,753,826,710$8,907,368,300$9,980,580,030

$11,046,665,930$12,428,794,460$13,106,468,240$13,632,390,600$13,315,119,120




(Unaudited)

Personal Property

Assessed value

$1,345,367,160$1,347,101,120$1,383,706,390$1,450,253,010$1,483,806,610$1,563,845,812$1,667,787,720$1,688,806,660$1,760,295,384$1,780,386,101


$1 ,583,760,760$1 ,594,848,07O$1 ,631,463,54O$1 ,733,169,700$1 ,782,792,320$1 ,864,294,192$1 ,952,344,37O$1 ,870,757,698$1 ,942,601 ,673$2,083,218,610

91

ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY

Centrallyassessed

$13,822,880$17,847,500$13,732,100$16,435,970$26,030,830$21,403,570$19,933,910$16,822,410$18,318,380$25,607,560

Total

Assessed value

$6,891 ,962,230$7,051 ,257,770$7,330,933,580$7,538,325,190$8,408,675,280$9,187,553,282

$10,483,805,990$11,231,095,470$11,673,095,374$12,598,404,891


$9,923,125,040$10,106,876,000$10,399,022,350$10,656,973,970$11,789,403,180$12,932,363,692$14,401 ,072,740$14,994,048,348$15,593,310,653$15,423,945,290

TABLE 4

Ratio of totalassessed to

total estimated

69.45%69.77%70.50%70.74%71.32%71.04%72.80%74.90%74.86%81.68%

TABLE 5


PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $1000 OF ASSESSED VALUE)


(Unaudited)

City of Pensacola Northwest

Escambia Escambia County Downtown FloridaFiscal Escambia County Municipal Service City of Improvement Water Town of TotalYear County School Board Taxing Unit Pensacola Board Management Century County

1994 8.817 9.447 0.784 5.057 1.9860 0.050 1.265 27.40601995 8.817 9.814 1.027 5.057 2.0000 0.050 1.265 28.03001996 8.789 9.919 0.495 5.057 2.0000 0.050 1.155 27.46501997 8.756 9.616 0.495 5.057 2.0000 0.050 1.128 27.10201998 8.260 9.565 0.466 5.057 2.0000 0.050 1.091 26.48901999 8.756 9.556 0.495 5.057 2.0000 0.050 1.091 27.00502000 8.756 9.011 0.747 5.057 2.0000 0.050 1.086 26.70702001 8.756 9.249 0.747 5.057 2.0000 0.050 1.031 26.89002002 8.756 8.986 0.747 5.057 2.0000 0.050 0.998 26.59402003 8.756 8.887 0.747 5.057 1.0000 0.050 0.981 25.4780


92

FiscalYear

1994199519961997199819992000200120022003

EscambiaCounty

8.8178.8178.7898.7568.2608.7568.7568.7568.7568.756

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $1000 0F ASSESSED VALUE)

EscambiaCounty

School Board

9.4479.8149.9199.6169.5659.5569.0119.2498.9868.887




Escambia CountyMunicipal Service

Taxing Unit

0.7841 .0270.4950.4950.4660.4950.7470.7470.7470.747

(Unaudited)

City ofPensacola

5.0575.0575.0575.0575.0575.0575.0575.0575.0575.057

92

City ofPensacolaDowntown

ImprovementBoard

1 .98602.00002.00002.00002.00002.00002.00002.00002.00001 .0000

NorthwestFloridaWater

Management

0.0500.0500.0500.0500.0500.0500.0500.0500.0500.050

Town ofCentury

1.2651.2651.1551.1281.0911.0911.0861.0310.9980.981

TABLE 5

TotalCou nty

27.406028.030027.465027.102026.489027.005026.707026.890026.594025.4780

TABLE 6


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2003

(Unaudited)

Direct Debt of Escambia County Non-Self SelfAs of September 30, 2003 Supporting Supporting

Road Improvement Revenue Bonds, Series 1993A, due 2004 $0 $0Road Improvement Revenue Bonds, Series 1993B, due 2009 6,055,000 0Sales Tax Revenue Bonds, Series 2002, due 10/01/2033 89,730,000 0Tourism Development Revenue Bonds, Series 2002, due 10/01/2019 16,700,000 0Capital Improvement Bonds, Series 2002, due 10/01/2032 22,305,000 0Capital Improvement Revenue Note, Series 1997 9,445,000 0Capital Improvement Revenue Note, Series 1998 10,782,000 0Capital Improvement Revenue Note, Series 1999B 5,520,000 0Capital Improvement Revenue Note, Series 1999C 16,000,000 0SunTrust Line of Credit 0 1,184,362Toll Facility Revolving Trust Fund 469,167 0Obligations under Capital Lease(s) 6,388,609 0Total Escambia County Direct Debt $183,394,776 $1,184,362

Direct Debt of Escambia County School BoardAs of June 30, 2003

State Board of Education Bonds, 1992A; 1994A; 1995A; 1996A; 1996B; 1997A, 1998A, and 2001B $12,055,000 $0Certificates of Participation 62,840,000 0Obligations under Capital Lease 7,486,257 0Long-Term Notes Payable 6,700,000 0Total Escambia County School Board Direct Debt $89,081,257 $0

Direct Debt of Escambia County Utilities AuthorityAs of September 30, 2003

Utility System Revenue Bonds, Series 1992A, due 1/1/03 $0 $0Utility System Revenue Bonds, Series 1992B, due 1/1/15 0 38,088,291Utility System Revenue Bonds, Series 1996, due 1/1/27 0 16,020,000Sanitation System Improvement and Refunding Revenue Bonds, Series 1998, due 1/1/22 0 13,880,000Utility System Revenue Bonds, Series 1998A, due 1/1/28 0 10,385,000Utility System Refunding Revenue Bonds, Series 1998B, due 1/1/23 0 14,155,000Utility System Revenue Bonds, Series 1998C, due 1/1/11 0 3,235,000Utility System Revenue Bonds, Series 1998D, due 1/1/11 0 28,410,000Utility System Revenue Bonds, Series 1999, due 1/1/29 0 25,460,000Utility System Revenue Bonds, Series 2001, due 1/1/31 0 9,980,000State of Florida Department of Environmental Protection, Revolving Loan, due 9/15/14 0 567,643Utility System Revenue Bonds, Series 2001B, due 1/1/22 0 5,675,000Utility System Revenue Bonds, Series 2003, due 1/1/33 0 23,150,000Total Escambia County Utilities Authority Direct Debt $0 $189,005,934

Notes: (1) Financial data is reported as of the entity's fiscal year ending date.

93


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2003

(Unaudited)

Direct Debt of Escambia County Non-SelfAs of September 30, 2003 Supporting

TABLE 6

SelfSupporting

Road Improvement Revenue Bonds, Series 1993A, due 2004 $0Road Improvement Revenue Bonds, Series 1993B, due 2009 6,055,000Sales Tax Revenue Bonds, Series 2002, due 10/01/2033 89,730,000Tourism Development Revenue Bonds, Series 2002, due 10/01/2019 16,700,000Capital Improvement Bonds, Series 2002, due 10/01/2032 22,305,000Capital Improvement Revenue Note, Series 1997 9,445,000Capital Improvement Revenue Note, Series 1998 10,782,000Capital Improvement Revenue Note, Series 1999B 5,520,000Capital Improvement Revenue Note, Series 1999C 16,000,000SunTrust Line of Credit 0To“ Facility Revolving Trust Fund 469,167Obligations under Capital Lease(s) 6,388,609

OO

OO

OO

OO

O

1,184,3620O

Total Escambia County Direct Debt $183,394,776

Direct Debt of Escambia County School BoardAs of June 30, 2003

State Board of Education Bonds, 1992A; 1994A; 1995A; 1996A; 1996B;1997A, 1998A, and 2001B $12,055,000

Certificates of Participation 62,840,000Obligations under Capital Lease 7,486,257Long-Term Notes Payable 6,700,000

$1,184,362

Total Escambia County School Board Direct Debt $89,081,257

Direct Debt of Escambia County Utilities AuthorityAs of September 30, 2003

Utility System Revenue Bonds, Series 1992A, due 1/1/03 $Utility System Revenue Bonds, Series 1992B, due 1/1/15Utility System Revenue Bonds, Series 1996, due 1/1/27Sanitation System Improvement and Refunding Revenue Bonds, Series 1998, due 1/1/22Utility System Revenue Bonds, Series 1998A, due 1/1/28Utility System Refunding Revenue Bonds, Series 1998B, due 1/1/23Utility System Revenue Bonds, Series 1998C, due 1/1/11Utility System Revenue Bonds, Series 1998D, due 1/1/11Utility System Revenue Bonds, Series 1999, due 1/1/29Utility System Revenue Bonds, Series 2001, due 1/1/31State of Florida Department of Environmental Protection, Revolving Loan, due 9/15/14Utility System Revenue Bonds, Series 2001B, due 1/1/22Utility System Revenue Bonds, Series 2003, due 1/1/33

$038,088,29116,020,00013,880,00010,385,00014,155,0003,235,000

28,410,00025,460,000

9,980,000567,643

5,675,00023,150,000

OO

OO

OO

OO

OO

OO

OO

Total Escambia County Utilities Authority Direct Debt $

Notes:(1) Financial data is reported as of the entity's fiscal year ending date.

93

$189,005,934

TABLE 6


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2003

(Unaudited)

Overlapping Long Term Debt of the City of Pensacola Non-Self SelfAs of September 30, 2003 Supporting Supporting

Airport Revenue Bonds, Series 1993, due 10/1/18 $0 $4,455,000Airport Revenue Bonds, Series 1997A, due 10/1/28 0 14,280,000Airport Revenue Bonds, Series 1997B, due 10/1/15 0 5,800,000Airport Revenue Refunding Bonds, Series 1998A, due 10/1/18 0 15,995,000Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07 0 5,810,000Gas System Revenue Refunding Bonds, Series 1999, due 12/1/19 0 8,000,000Gulf Breeze Loan Pool Note, Series 1997, due 12/1/14 2,698,500 0Gulf Breeze Loan Pool Note, Series 1998, due 12/1/14 1,898,500 0Public Improvement Refunding Revenue Bonds, Series 1995, due 11/1/03 755,000 0Redevelopment Refunding, Series 1994, due 4/1/14 3,815,000 0Sales and Excise Tax Revenue Bonds, CABS, Series 1990, due 10/1/05 5,501,312 0Sales and Excise Tax Revenue Bonds, Series 1995, due 10/1/12 13,575,000 0Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08 8,600,000 0Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07 5,275,000 0Capital Improvement Revenue Note, Series 1992, due 2/1/02 0 0Capital Improvement Revenue Note, Series 1996, due 10/1/06 230,000 0Gulf Breeze Loan Pool Note, Series 2000A, due 10/01/17 6,500,000 0Gulf Breeze Loan Pool Note, Series 2000B, due 10/01/17 13,500,000 0Pensacola-Escambia Governmental Center Authority Revenue Bonds, Series 1974-1, due 7/1/04 0 0Pensacola-Escambia Governmental Center Authority Revenue Bonds, Series 1974-2, due 7/1/04 0 0

$62,348,312 $54,340,000

Source : City of Pensacola, Florida, Comprehensive Annual Financial Report Escambia County, Florida, Comprehensive Annual Financial Report

94


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2003

(Unaudited)

Overlapping Long Term Debt of the City of PensacolaAs of September 30, 2003

Non-SelfSupporting

TABLE 6

SelfSupporting

Airport Revenue Bonds, Series 1993, due 10/1/18Airport Revenue Bonds, Series 1997A, due 10/1/28Airport Revenue Bonds, Series 1997B, due 10/1/15Airport Revenue Refunding Bonds, Series 1998A, due 10/1/18Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07Gas System Revenue Refunding Bonds, Series 1999, due 12/1/19Gulf Breeze Loan Pool Note, Series 1997, due 12/1/14Gulf Breeze Loan Pool Note, Series 1998, due 12/1/14Public Improvement Refunding Revenue Bonds, Series 1995, due 11/1/03Redevelopment Refunding, Series 1994, due 4/1/14Sales and Excise Tax Revenue Bonds, CABS, Series 1990, due 10/1/05Sales and Excise Tax Revenue Bonds, Series 1995, due 10/1/12Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07Capital Improvement Revenue Note, Series 1992, due 2/1/02Capital Improvement Revenue Note, Series 1996, due 10/1/06Gulf Breeze Loan Pool Note, Series 2000A, due 10/01/17Gulf Breeze Loan Pool Note, Series 2000B, due 10/01/17Pensacola-Escambia Governmental Center Authority Revenue Bonds, Series 1974-1, duePensacola-Escambia Governmental Center Authority Revenue Bonds, Series 1974-2, due

Source : City of Pensacola, Florida, Comprehensive Annual Financial ReportEscambia County, Florida, Comprehensive Annual Financial Report

94

00

00

0

02,698,5001,898,500

755,0003,815,0005,501,312

13,575,0008,600,0005,275,000

0230,000

6,500,00013,500,000

00

$4,455,00014,280,0005,800,000

15,995,0005,810,0008,000,000

0

$62,348,312

OOOOOOOOOOOOOO$54,340,00

TABLE 7


SPECIAL ASSESSMENT COLLECTIONS


(Unaudited)

Current CurrentFiscal assessments assessmentsyear billed collected

1994 $7,872,525 $7,409,3011995 $8,805,017 $8,382,4821996 $6,751,067 $5,924,7311997 $6,777,001 $6,223,6361998 $7,345,942 $7,607,9761999 $7,806,678 $7,280,3392000 $11,288,376 * $10,843,7682001 $12,098,838 $11,340,2232002 $12,622,286 $12,157,7942003 $12,953,773 $12,586,943

Note: The above amounts are comprised of collections from the MunicipalServices Taxing Unit, the Navarre Beach Fire District, the Fire ProtectionFund, E-911 Operations and Santa Rosa Island Authority-MSBU

*Effective October 1, 1999, the Fire Protection MSBU rate was increased from $32 to $50 for a single-family residence, a 56% increase.

95

TABLE 7


SPECIAL ASSESSMENT COLLECTIONS


(Unaudited)

Current CurrentFiscal assessments assessmentsyear billed collected

1994199519961997199819992000200120022003

$7,872,525$8,805,017$6,751,067$6,777,001$7,345,942$7,806,678

$11,288,376$12,098,838$12,622,286$12,953,773

$7,409,301$8,382,482$5,924,731$6,223,636$7,607,976$7,280,339

$10,843,768$11,340,223$12,157,794$12,586,943

Note: The above amounts are comprised of collections from the MunicipalServices Taxing Unit, the Navarre Beach Fire District, the Fire ProtectionFund, E-911 Operations and Santa Rosa Island Authority-MSBU

*Effective October 1, 1999, the Fire Protection MSBU rate was increasedfrom $32 to $50 for a single-family residence, a 56% increase.

95

TABLE 8


REVENUE BOND COVERAGE - CIVIC CENTERENTERPRISE BOND FUNDS


(Unaudited)

Net revenueFiscal Gross Operating available for Debt service requirementYear revenue (2) expenses (3) debt service (1) Principal Interest (4) Total Coverage

1994 $2,418,183 $1,877,411 $540,772 $215,000 $368,310 $583,310 0.931995 $2,733,275 $2,213,778 $519,497 $220,000 $361,127 $581,127 0.891996 $2,921,460 $1,939,381 $982,079 $230,000 $352,563 $582,563 1.691997 $4,429,859 $2,556,546 $1,873,313 $235,000 $342,678 $577,678 3.241998 $4,269,790 $2,059,011 $2,210,779 $250,000 $331,758 $581,758 3.801999 $3,557,183 $2,493,250 $1,063,933 $260,000 $318,985 $578,985 1.842000 $5,376,114 $3,576,146 $1,799,968 $270,000 $350,123 $620,123 2.902001 $4,543,189 $3,464,884 $1,078,305 $285,000 $335,760 $620,760 1.742002 $3,653,545 $3,275,426 $378,119 $300,000 $308,853 $608,853 0.622003* $9,652,196 $3,696,586 $5,955,610 $4,650,000 $185,161 $4,835,161 1.23

NOTE:

(1) Tourist Development Serial and Term Bonds issued December 1, 1987 for $6,300,000. Refunded for $6,915,000, dated September 1, 1992.

(2) Operating revenue, other revenue and transfers in.

(3) Operating expense other than interest on debt, depreciation and amortization.

(4) Includes interest paid.

*Note - During FY03 the Revenue Bonds were refunded by the Tourist Development Bonds Series 2002. These new bonds are now being carried as a governmental-type bond.

96

TABLE 8


REVENUE BOND COVERAGE - CIVIC CENTERENTERPRISE BOND FUNDS


(Unaudited)

Net revenueFiscal Gross Operating available for Debt service requirementYear revenue (2) expenses (3) debt service (1) Principal Interest (4) Total Coverage

1994 $2,418,183 $1,877,411 $540,772 $215,000 $368,310 $583,310 0.931995 $2,733,275 $2,213,778 $519,497 $220,000 $361,127 $581,127 0.891996 $2,921,460 $1,939,381 $982,079 $230,000 $352,563 $582,563 1.691997 $4,429,859 $2,556,546 $1,873,313 $235,000 $342,678 $577,678 3.241998 $4,269,790 $2,059,011 $2,210,779 $250,000 $331,758 $581,758 3.801999 $3,557,183 $2,493,250 $1,063,933 $260,000 $318,985 $578,985 1.842000 $5,376,114 $3,576,146 $1,799,968 $270,000 $350,123 $620,123 2.902001 $4,543,189 $3,464,884 $1,078,305 $285,000 $335,760 $620,760 1.742002 $3,653,545 $3,275,426 $378,119 $300,000 $308,853 $608,853 0.622003* $9,652,196 $3,696,586 $5,955,610 $4,650,000 $185,161 $4,835,161 1.23

NOTE:

(1) Tourist Development Serial and Term Bonds issued December 1, 1987 for $6,300,000.Refunded for $6,915,000, dated September 1, 1992.

(2) Operating revenue, other revenue and transfers in.

(3) Operating expense other than interest on debt, depreciation and amortization.

(4) Includes interest paid.

*Note - During FY03 the Revenue Bonds were refunded by the Tourist Development Bonds Series 2002. These new bonds are now being carried as agovernmental-type bond.

96

TABLE 9


DEMOGRAPHIC STATISTICS


(Unaudited)

UnemploymentFiscal Per capita School Percentage Medianyear Population (1) income (2) enrollment (3) rate (4) age (1)

1994 277,067 $16,474 44,568 4.9% 32.41995 282,742 $16,899 44,725 5.1% 32.41996 280,900 $18,509 47,748 5.0% 33.51997 286,301 $18,639 46,248 4.0% 34.01998 291,135 $19,253 44,648 4.2% 34.61999 296,164 $21,638 44,742 3.6% 34.82000 301,613 * $22,441 45,165 3.5% 35.12001 294,410 $24,487 43,508 3.8% 35.42002 296,709 $25,359 43,319 3.8% 35.42003 297,280 $26,230 42,944 4.0% 35

Sources:(1) Florida Legislative Committee on Intergovernmental Relations (Source: www.fcn.state.fl.us/lcir/estimates/2002%20ADJPOPS.pdf )

(2) Pensacola Chamber of Commerce (Source: Pensacola MSA Personal Income Projection)

(3) Escambia County School District, Pensacola, Florida (Source: Escambia School Board Budget Department)

(4) Labor Market Information Labor Market Statitistics (State of Florida)

* This figure was an estimation based on the anticipated 2000 census results.

97


DEMOGRAPHIC STATISTICS


(Unaudited)

UnemploymentFiscal Per capita School Percentageyear Population (1) income (2) enrollment (3) rate (4)

1994 277,067 $16,474 44,568 4.9%1995 282,742 $16,899 44,725 5.1%1996 280,900 $18,509 47,748 5.0%1997 286,301 $18,639 46,248 4.0%1998 291,135 $19,253 44,648 4.2%1999 296,164 $21,638 44,742 3.6%2000 301,613 * $22,441 45,165 3.5%2001 294,410 $24,487 43,508 3.8%2002 296,709 $25,359 43,319 3.8%2003 297,280 $26,230 42,944 4.0%

Sources:(1) Florida Legislative Committee on Intergovernmental Relations

(Source: www.fcn.state.fl.us/Icir/estimates/2002%20ADJPOPS.pdf)

(2) Pensacola Chamber of Commerce(Source: Pensacola MSA Personal Income Projection)

(3) Escambia County School District, Pensacola, Florida(Source: Escambia School Board Budget Department)

(4) Labor Market InformationLabor Market Statitistics (State of Florida)

* This figure was an estimation based on the anticipated 2000 census results.

97

TABLE 9

Medianage (1)

32.432.433.534.034.634.835.135.435.435


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS


(Unaudited)

Commercial ResidentialConstruction (1) Construction (1) Assessed property value (3)

Fiscal Number Number Bank deposits (2) Totalyear of Permits Value of units Value (in thousands) Commercial Residential Other (4) non-exempt Exempt

1994 128 $40,323,914 1,380 $95,713,079 $2,177,484 $1,096,490,060 $2,736,081,690 $195,790,870 $4,028,362,620 $4,084,082,7201995 156 $62,310,433 1,483 $90,748,585 $2,133,606 $1,133,966,250 $2,819,093,180 $196,850,770 $4,149,910,200 $4,132,336,6301996 160 $30,466,727 2,548 $174,388,336 $2,174,967 $1,177,602,740 $2,974,731,980 $186,966,470 $4,339,301,190 $4,205,158,1501997 242 $48,810,935 2,565 $156,490,686 $2,167,786 $1,197,867,170 $3,065,967,870 $183,352,870 $4,447,187,910 $4,251,813,2401998 170 $60,379,912 1,922 $131,189,646 $2,431,851 $1,263,252,180 $3,491,493,360 $203,117,850 $4,957,863,390 $4,816,063,2101999 233 $114,281,178 1,859 $138,809,008 $2,492,956 $1,392,554,800 $3,834,057,270 $211,949,870 $5,438,561,940 $5,403,299,6302000 161 $93,395,963 1,795 $137,967,235 $2,605,174 $1,555,377,130 $4,529,524,834 $216,001,140 $6,306,600,794 $5,921,972,7562001 98 $139,613,959 1,766 $133,486,782 $2,576,000 $1,642,142,290 $4,984,898,442 $237,399,005 $6,861,406,007 $6,043,943,1932002 1,170 $295,355,073 1,889 $206,560,069 $2,622,000 $1,653,677,610 $5,358,150,292 $241,740,610 $7,235,640,132 $6,195,466,0382003 1,165 $402,131,370 2,210 $280,371,488 $3,063,000 $1,781,301,980 $5,848,440,689 $272,803,070 $7,876,938,179 $4,143,391,901

Source: (1) Data provided by Escambia County Building Inspections Department.

(2) FDIC, information is as of June 30, 2003

(3) Value and number of parcels on the real property assessment roll by category schedule, prepared by Escambia County Property Appraiser. (Taxable value for operating purposes basis.)

(4) Agricultural, institutional, leasehold interests, government, miscellaneous and non-agricultural acreage.

98

Fiscalyear

1994199519961997199819992000200120022003

Source:(1) Data provided by Escambia County Building Inspections Department.

(2) FDIC, information is as of June 30,2003

CommercialConstruction (1)


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS

ResidentialConstruction (1 )

Numberof Permits Value

12815616024217023316198

1,1701,165

$40,323,914$62,310,433$30,466,727$48,810,935$60,379,912

$114,281,178$93,395,963

$139,613,959$295,355,073$402,131,370

Numberof units

1,3801,4832,5482,5651,9221,8591,7951,7661,8892,210

Value

$95,713,079$90,748,585

$174,388,336$156,490,686$131,189,646$138,809,008$137,967,235$133,486,782$206,560,069$280,371,488


(Unaudited)

Bank deposits (2)(in thousands)

$2,177,484$2,133,606$2,174,967$2,167,786$2,431,851$2,492,956$2,605,174$2,576,000$2,622,000$3,063,000

Assessed property value (3)

TABLE 10

Commercial

$1,096,490,060$1,133,966,250$1,177,602,740$1,197,867,170$1,263,252,180$1,392,554,800$1,555,377,130$1,642,142,290$1,653,677,610$1,781,301,980

Residential

$2,736,081,690$2,819,093,180$2,974,731,980$3,065,967,870$3,491 ,493,360$3,834,057,270$4,529,524,834$4,984,898,442$5,358,150,292$5,848,440,689

(3) Value and number of parcels on the real property assessment roll by category schedule, prepared by Escambia County Property Appraiser.(Taxable value for operating purposes basis.)

(4) Agricultural, institutional, leasehold interests, government, miscellaneous and non-agricultural acreage.

98

Other (4)

$195,790,870$196,850,770$186,966,470$183,352,870$203,117,850$211,949,870$216,001,140$237,399,005$241,740,610$272,803,070

Totalnon-exempt

$4,028,362,620$4,149,910,200$4,339,301,190$4,447,187,910$4,957,863,390$5,438,561,940$6,306,600,794$6,861 ,406,007$7,235,640,132$7,876,938,179

Exempt

$4,084,082,720$4,132,336,630$4,205,158,150$4,251 ,813,240$4,816,063,210$5,403,299,630$5,921 ,972,756$6,043,943,193$6,195,466,038$4,143,391,901

TABLE 11


PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2003

(Unaudited)

PercentageAssessed value Amount paid of tax levy

Gulf Power Company $387,269,840 $7,436,220 * 3.46 %

International Paper $230,508,660 $3,769,312 2.30 %

Solutia, Inc. $170,014,080 $3,185,232 2.11 %

Bell South Telecommunication $106,020,270 $2,105,369 * 0.96 %

West Florida Regional Medical Center $75,726,820 $1,420,649 0.84 %

Simon Group $50,354,560 $1,079,668 * 0.51 %

Walmart Stores $46,236,120 $963,389 * 0.44 %

Cox Communications $42,802,000 $809,679 0.98 %

Cordova Community $34,918,620 $773,511 * 0.27 %

Armstrong World $33,277,750 $753,774 * 0.48 %

Grand Total $1,177,128,720 $22,296,805

NOTE: Discrepancies between taxes paid and assessed value occur due to payment dates involving discounts and/or penalties and industrial exemptions where applicable. Taxes paid followed by an * include city millage.

SOURCE: Escambia County Tax Roll compiled by the Escambia County Property Appraiser and tangible personal property records on file in the Escambia County Tax Collector's office.

99

TABLE 11


PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2003

(Unaudited)

PercentageAssessed value Amount paid of tax levy

Gulf Power Company

International Paper

Solutia, Inc.

Bell South Telecommunication

West Florida Regional Medical Center

Simon Group

$387,269,840

$230,508,660

$170,014,080

$106,020,270

$75,726,820

$50,354,560

$7,436,220 * 3.46 %

$3,769,312

$3,185,232

$2,105,369

$1,420,649

$1,079,668

2.30

2.11

0.96

0.84

0.51

%

%

%

%

%

WalmartStores $46,236,120 $963,389 * 0.44 %

Cox Communications $42,802,000 $809,679 0.98 %

CordovaCommunity $34,918,620 $773,511 * 0.27 %

Armstrong World $33,277,750 $753,774 * 0.48 %

Grand Total $1,177,128,720 $22,296,805

NOTE: Discrepancies between taxes paid and assessed value occur due to payment datesinvolving discounts and/or penalties and industrial exemptions where applicable.Taxes paid followed by an * include city millage.

SOURCE: Escambia County Tax Roll compiled by the Escambia County Property Appraiserand tangible personal property records on file in the Escambia CountyTax Collector's office.

99

TABLE 12


MAJOR EMPLOYERS

(Unaudited)

Number ofCompany Product employees

Local government Government services 15,790 *Federal government Government services 7,403 *State of Florida Government services 5,970Sacred Heart Health System Health care service 3,500Baptist Health Care Health care service 3,470University of West Florida Education 2,267Solutia, Inc. Nylon fiber/chemicals 1,800Lakeview Health care service 1,500Gulf Power Company Electric utility 1,400West Florida Hospital Health care service 1,200Pensacola Christian College School and publishing 1,078International Paper Paper products 1,000Pensacola Junior College Education 770West Corporation Broadband wireless support 750Medical Center Clinic Health care service 725Network Telephone Communications services 582ECUA Public utilities 510SMG Food Services Entertainment and food services 475Santa Rosa Medical Center, Inc. Health care service 450Washington Mutual Finance Financial services 430Wayne Dalton Corporation Garage door manufacturer 350DANA Coupled Products Automobile brake systems 300Armstrong World Industries Acoustical ceiling 300General Electric Wind energy systems 250TRX, Incorporated Online fulfillment 241

SOURCE: Pensacola Chamber of Commerce

* This figure includes all government employees in both Santa Rosa and Escambia Counties (Pensacola MSA) including both County's School Boards.

100

TABLE 12


MAJOR EMPLOYERS

(Unaudited)

Company ProductNumber ofemployees

Local governmentFederal governmentState of FloridaSacred Heart Health SystemBaptist Health CareUniversity of West FloridaSolutia, Inc.LakeviewGulf Power CompanyWest Florida HospitalPensacola Christian CollegeInternational PaperPensacola Junior CollegeWest CorporationMedical Center ClinicNetwork TelephoneECUASMG Food ServicesSanta Rosa Medical Center, Inc.Washington Mutual FinanceWayne Dalton CorporationDANA Coupled ProductsArmstrong World IndustriesGeneral ElectricTRX, Incorporated

Government servicesGovernment servicesGovernment servicesHealth care serviceHealth care serviceEducationNylon fiber/chemicalsHealth care serviceElectric utilityHealth care serviceSchool and publishingPaper productsEducationBroadband wireless supportHealth care serviceCommunications servicesPublic utilitiesEntertainment and food servicesHealth care serviceFinancial servicesGarage door manufacturerAutomobile brake systemsAcoustical ceilingWind energy systemsOnline fulfillment

SOURCE: Pensacola Chamber of Commerce

15,790 *7,403 *5,9703,5003,4702,2671,8001,5001,4001,2001,0781,000

770750725582510475450430350300300250241

* This figure includes all government employees in both Santa Rosa and Escambia Counties(Pensacola MSA) including both County's School Boards.

100

TABLE 13


SPECIAL TAX COLLECTIONS


(Unaudited)

Local OptionFiscal Local Option 1/2 Cent Local Option Infrastructure SalesYear Tourist Tax (1) Sales Tax Gas Tax (2) Surtax (3) Total

1994 $1,909,283 $11,932,144 $6,275,925 $19,324,089 $39,441,4411995 $2,109,896 $13,297,438 $6,224,824 $21,522,630 $43,154,7881996 $2,446,325 $14,555,787 $6,486,024 $23,470,551 $46,958,6871997 $3,252,203 $14,795,651 $6,525,632 $23,520,634 $48,094,1201998 $3,292,209 $15,472,523 $6,509,218 $24,406,953 $49,680,9031999 $3,019,965 $16,357,676 $6,629,389 $26,627,130 $52,634,1602000 $2,774,474 $17,009,339 $6,756,194 $27,501,268 $54,041,2752001 $3,784,756 $16,695,742 $6,653,803 $27,588,432 $54,722,7332002 $3,930,893 $18,174,776 $6,889,022 $28,337,618 $57,332,3082003 $4,338,875 $18,662,958 $6,612,220 $29,642,829 $59,256,882

Note 1 - Additional one-cent tax in effect May 1996 - April 1999 and August 1, 2000 to present. Note 2 - The Local Option Gas Tax became effective September 1, 1986.

Note 3 - The Local Option Infrastructure Sales Tax became effective June 1, 1992.

101

FiscalYear

1994199519961997199819992000200120022003

Local OptionTourist Tax (1)

$1,909,283$2,109,896$2,446,325$3,252,203$3,292,209$3,019,965$2,774,474$3,784,756$3,930,893$4,338,875


SPECIAL TAX COLLECTIONS


1/2 CentSales Tax

$11,932,144$13,297,438$14,555,787$14,795,651$15,472,523$16,357,676$17,009,339$16,695,742$18,174,776$18,662,958

(Unaudited)

Local OptionGas Tax (2)

$6,275,925$6,224,824$6,486,024$6,525,632$6,509,218$6,629,389$6,756,194$6,653,803$6,889,022$6,612,220

Local OptionInfrastructure Sales

Surtax (3)

$19,324,089$21,522,630$23,470,551$23,520,634$24,406,953$26,627,130$27,501,268$27,588,432$28,337,618$29,642,829

TABLE 13

Total

$39,441,441$43,154,788$46,958,687$48,094,120$49,680,903$52,634,160$54,041,275$54,722,733$57,332,308$59,256,882

Note 1 - Additional one-cent tax in effect May 1996 - April 1999 and August 1, 2000 to present.

Note 2 - The Local Option Gas Tax became effective September 1, 1986.

Note 3 - The Local Option Infrastructure Sales Tax became effective June 1, 1992.

101

Table 14ESCAMBIA COUNTY, FLORIDA

INSURANCE SCHEDULEFOR FISCAL YEAR ENDED SEPTEMBER 30, 2003

As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUMBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package Blue Cross Blue Shield 5/1/03-5/1/04 97305

Employee Dental Package Delta Dental Services, Inc. 6/1/00-10/1/03 1440

Employee Life and AD&D Standard Life 10/1/99-9/30/04 638071

Law Enforcement Statutory A. Downing Gray/ 1/1/03-06 ETB 105347 $100,000.00 $20,969.00 Death Benefits The Hartford Group

Worker's Compensation Self Insured $350,000.00

Excess Worker's Compensation Lon Bryan & Company 1/1/03-04 544-000151-7 $350,000.00 Statutory Limits $180,000.00 & Excess General Liability North River Insurance Co. 1mil/2mil

PROPERTY AND CASUALTY INSURANCE

BCC: Commercial Crime Policy Lon Bryan & Company 1/1/03-04 3136382 $5,000.00 $500,000.00 $11,834.00National Union Fire

Commercial Package - (TIV $246,231,570) Lon Bryan & Company $100,000.00 Primary $2.5mil CRC/Lloyds Underwriters 1/1/03-04 CRC-12615 $2,500,000.00 $332,504.00 $5m Excess of $2.5m CRC/United States Fire Ins. Co. 1/1/03-04 245003111 $7,500,000.00 $225,229.00 $7.5m Excess of $7.5m CRC/Hartford Fire Ins. Co. 1/1/03-04 GX0001427 $15,000,000.00 $90,094.00 $2.5m Excess of $15m CRC/Excess Ins. Co. 1/1/03-04 ESP0085 $17,500,000.00 $27,504.00 $2.5m Excess of $17.5m CRC/Great American E&S Ins. Co. 1/1/03-04 GP5904332 $20,000,000.00 $27,504.00 $5m Excess of $20m CRC/Glencoe Ins. Ltd. 1/1/03-04 AR-25050-00 $25,000,000.00 $25,004.00 $175m Excess of $25m CRC/Royal Surlus Lines Ins., Co. 1/1/03-04 K2HD322728 $200,000,000.00 $82,504.00

Boiler and Machinery Lon Bryan & Company 1/1/03-04 FBP2286547 $10,000.00 $50,000.00 $19,300.00Hartford SteamBoiler or 10% (>)

Bob Sikes Bridge/SR Sound Bridge Department of Transportation 7/1/03-7/1/04 Structure #4801139$25,000.00 $20,330,296.00 $23,953.00Arthur J. Gallagher and #480123 or 1% (>)

FLOOD & WINDSTORM INSURANCE

C&P Bank Building Lon Bryan & Company 12/01/02-03 6500354995 (B) $500.00 (B) $250,000.00 $1,308.00213 Palafox PL Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Courthouse & Annex Lon Bryan & Company 10/04/02-03 6500277840 (B) $500.00 (B) $250,000.00 $1,866.00223 S. Palafox Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Judicial Building Lon Bryan & Company 10/04/02-03 6500277832 (B) $500.00 (B) $250,000.00 $1,169.00190 W. Government St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Property Appraiser Lon Bryan & Company 10/04/02-03 6500277865 (B) $500.00 (B) $250,000.00 $1,170.00213 West Garden St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

USO Building Lon Bryan & Company 07/27/03-04 6500216798 (B) $500.00 (B) $84,000.00 $1,606.0025 S. Spring St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Booking & Detention Lon Bryan & Company 10/07/02-03 6500277873 (B) $500.00 (B) $250,000.00 $1,176.001200 West Leonard St. Travelers Property & Casualty (B) $500.00 (C) $250,000.00

(Continued)

102

As of 9/15/03

ESCAMBIA COUNTY, FLORIDAINSURANCE SCHEDULE

FOR FISCAL YEAR ENDED SEPTEMBER 30, 2003

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE

Table 14

POLICY LIMITS PREMIUMBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package

Employee Dental Package

Employee Life and AD&D

Law Enforcement StatutoryDeath Benefits

Worker's Compensation

Excess Worker's Compensation& Excess General Liability

Blue Cross Blue Shield

Delta Dental Services, Inc.

Standard Life

A. Downing Gray/The Hartford Group

Self Insured

Lon Bryan & CompanyNorth River Insurance Co.


BCC: Commercial Crime Policy

Commercial Package - (TIV $246,231,570)Primary $2.5mil$5m Excess of $2.5m$7.5m Excess of $7.5m$2.5m Excess of $15m$2.5m Excess of $17.5m$5m Excess of $20m$175m Excess of $25m

Boiler and Machinery

Bob Sikes Bridge/SR Sound Bridge

FLOOD & WINDSTORM INSURANCE

C&P Bank Building213 Palafox PL

Courthouse & Annex223 S. Palafox

Judicial Building190 W. Government St.

Property Appraiser213 West Garden St.

USO Building25 S. Spring St.

Booking & Detention1200 West Leonard St.

Lon Bryan & CompanyNational Union Fire

Lon Bryan & CompanyCRC/Lloyds UndenNritersCRC/United States Fire Ins. Co.CRC/Hartford Fire Ins. Co.CRC/Excess Ins. Co.CRC/Great American E&S Ins. Co.CRC/Glencoe Ins. Ltd.CRC/Royal Surlus Lines Ins., Co.

Lon Bryan & CompanyHartford SteamBoiler

Department of TransportationArthur J. Gallagher

Lon Bryan & CompanyTravelers Property & Casualty






5/1/03-5/1/04

6/1/00-10/1/03

10/1/99-9/30/04

1/1/03—06

1/1/03—04

1/1/03—04

1/1/03—041/1/03—041/1/03—041/1/03—041/1/03—041/1/03—041/1/03—04

1/1/03—04

7/1/03-7/1/04

12/01/02-03

10/04/02-03

10/04/02-03

10/04/02-03

07/27/03-04

10/07/02-03

97305

1440

638071

ETB 105347

544-000151-7 $350,000.00

3136382 $5,000.00

$100,000.00ORG-12615245003111GX0001427ESP0085GP5904332AR-25050-00K2HD322728

FBP2286547 $10,000.00or 10% (>)

Structure #480113 $25,000.00and #480123 or 1% (>)

6500354995 (B) $500.00(C) $500.00

6500277840 (B) $500.00(C) $500.00

6500277832 (B) $500.00(C) $500.00

6500277865 (B) $500.00(C) $500.00

6500216798 (B) $500.00(C) $500.00

6500277873 (B) $500.00(B) $500.00

102

$100,000.00

$350,000.00

Statutory Limits1miI/2mil

$500,000.00

$2,500,000.00$7,500,000.00$15,000,000.00$17,500,000.00$20,000,000.00$25,000,000.00$200,000,000.00

$50,000.00

$20,330,296.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $84,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

$20,969.00

$180,000.00

$11,834.00

$332,504.00$225,229.00$90,094.00$27,504.00$27,504.00$25,004.00$82,504.00

$19,300.00

$23,953.00

$1,308.00

$1,866.00

$1,169.00

$1,170.00

$1,606.00

$1,176.00

(Continued)


INSURANCE SCHEDULEFOR FISCAL YEAR ENDED SEPTEMBER 30, 2003 (CONTINUED)

As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUMOld Heath Dpt/Public Defenders Lon Bryan & Company 03/06/03-04 6500406662 (B) $500.00 (B) $250,000.00 $1,920.002251 North Palafox St. Travelers Property & Casualty (C) 0 (C) $250,000.00

Sheriffs Sub-Station Lon Bryan & Company 12/30/02-03 6500359150 (B) $500.00 (B) $348,000.00 $4,741.0041 Ft. Pickens Rd. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Old Orvis (Ordon's) Bldg Lon Bryan & Company 04/12/03-04 6500677452 (B) $500.00 (B) $250,000.00 $730.00201/207 South Palafox St. Travelers Property & Casualty (C) 0

Facilities Management Lon Bryan & Company 08/04/03-04 6004401664 (B) $500.00 (B) $500,000.00 $2,415.00100/120 East Blount Travelers Property & Casualty (C) $500.00 (C) $245,000.00

Sheriffs Sub-Station - WINDSTORM Lon Bryan & Company 11/03/02-03 353438 (B) $11,310.00 (B) $377,000.00 $1,142.0041 Ft. Pickens Rd. Citizens Property Insurance Corp

Santa Rosa Toll Booth Lon Bryan & Company 10/16/02-03 6500316960 (B) $500.00 (B) $500,000.00 $1,145.00451 Pensacola Blvd Travelers Property & Casualty (C) $500.00 (C) $281,700.00

Santa Rosa Toll Booth - WINDSTORM Lon Bryan & Company 10/15/02-03 1119917 (B) $21,546.00 (B) $718,212.00 $2,141.00451 Pensacola Blvd Citizens Property Insurance Corp (C) $8,453.00 (C) $281,788.00

BONDS

Public Official Dist 1 Fisher Brown/ 5/10/02-11/16/04 POB8526338 $0.00 $2,000.00 $109.00Clifford Barnhart Fidelity & Deposit

Public Official Dist 2 Fisher Brown/ 5/10/02-11/18/02 POB8526339 $0.00 $2,000.00 $100.00Timothy Wright Fidelity & Deposit

Public Official Dist 2 Fisher Brown/ 11/19/02-11/20/06 POB8526374 $0.00 $2,000.00 $121.00Bill Dickson Fidelity & Deposit

Public Official Dist 3 Fisher Brown/ 5/10/02-11/21/04 POB8526340 $0.00 $2,000.00 $109.00Marie Young Fidelity & Deposit

Public Official Dist 4 Fisher Brown/ 11/19/02-11/20/06 POB8117136 $0.00 $2,000.00 $121.00Thomas Banjamin Fidelity & Deposit

Public Official Dist 5 Fisher Brown/ 5/10/02-11/16/04 POB8526341 $0.00 $2,000.00 $109.00Janice Gilley Fidelity & Deposit

Overweight Penalty Fisher Brown/ 8/22/03-04 400MA6122 $0.00 $10,000.00 $100.00USF&G (Continued)

103

As of 9/15/03

FOR FISCAL YEAR ENDED SEPTEMBER 30, 2003 (CONTINUED)



Table 14

POLICY LIMITS PREMIUMOld Heath Dpt/Public Defenders2251 North Palafox St.

Sheriffs Sub-Station41 Ft. Pickens Rd.

Old Orvis (Ordon's) Bldg201/207 South Palafox St.

Facilities Management100/120 East Blount

Sheriffs Sub-Station - WINDSTORM41 Ft. Pickens Rd.

Santa Rosa Toll Booth451 Pensacola Blvd

Santa Rosa Toll Booth - WINDSTORM451 Pensacola Blvd

BONDS

Public Official Dist 1Clifford Barnhart

Public Official Dist 2Timothy Wright

Public Official Dist 2Bill Dickson

Public Official Dist 3Marie Young

Public Official Dist 4Thomas Banjamin

Public Official Dist 5Janice Gilley

Oven/veight Penalty





Lon Bryan & CompanyCitizens Property Insurance Corp


Lon Bryan & CompanyCitizens Property Insurance Corp

Fisher Brown/Fidelity & Deposit






Fisher Brown/USF&G

03/06/03-04

12/30/02-03

04/ 1 2/03-04

08/04/03-04

1 1/03/02-03

10/16/02-03

10/15/02-03

5/10/02-11/16/04

5/10/02-11/18/02

11/19/02-11/20/06

5/10/02-11/21/04

11/19/02-11/20/06

5/10/02-11/16/04

8/22/03-04

6500406662

6500359150

6500677452

6004401664

353438

6500316960

1119917

P088526338

P088526339

P088526374

P08852634O

POBB117136

P088526341

400MA6122

(B) $500.00(C) 0

(B) $500.00(C) $500.00

(B) $500.00

(B) $500.00(C) $500.00

(B) $11,310.00

(B) $500.00(C) $500.00

(B) $21,548.00(C) $8,453.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

103

(B) $250,000.00 $1,920.00(C) $250,000.00

(B) $348,000.00 $4,741.00(C) $250,000.00

(B) $250,000.00 $730.00(C) 0

(B) $500,000.00 $2,415.00(C) $245,000.00

(B) $377,000.00 $1,142.00

(B) $500,000.00 $1,145.00(C) $281,700.00

(B) $718,212.00 $2,141.00(C) $281,788.00

$2,000.00 $109.00

$2,000.00 $100.00

$2,000.00 $121.00

$2,000.00 $109.00

$2,000.00 $121.00

$2,000.00 $109.00

$10,000.00 $100.00(Continued)



As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUM

ECAT, ELECTED OFFICIALS, AND MISC.

EMPLOYEE RELATED INSURANCE

Volunteers Death and CIMA 07/01/02-03 5P5900304 $7,125.00Dismemberment and Medical

ECAT - ATC/VANCOM Fisher BrownECAT Workers' Comp Bridgefield Employers Reinsurance 12/01/01-03 BEI 0830-25835-0000None Statutory $175,295.00ECAT Employers Liability Group Travel CAN Insurance Company 07/08/03-04 SR-83096773 $1,000.00ECAT - ERISA Bond Travelers Indemnity Company 10/31/02-03 35BZ1032386928CM $128.00


Third Party Pollution Liability (VFD) Southeast Ins. Association 10/01/02-03 02-TO-00008993 $5,000.00 $1,000,000/$2,000,000 $960.00Great American

Third Party Pollution Liability (County) FPLIPA/Commerce & Industry 10/1/02-03 FPL1953729 $5,000.00 $1,000,000/$2,000,000 $3,279.00

ECAT: Required Liability Southeast Specialty UnderwritersECAT: Commercial General Liability National Interstate Insurance Company 07/01/03-04 CRTGLF098121 $10,000,000.00 $16,679.00ECAT: Automobile Liability National Interstate Insurance Company 07/01/03-04 CRTCAF097923 $5,000.00 $10,000,000.00 $330,983.00ECAT: Garage Liability Colony Insurance Company 07/01/03-04 CP3033075 $1,000,000.00 $9,681.00ECAT: Garage Keepers Legal Liability Essex Insurance Company 07/01/03-04 5CA0336 $5,000.00 $500,000.00 $6,755.00

WILDLIFE: Commercial General Liability Hiles-McLeod Insurance, Inc. 01/08/03-04 535B001293 $0.00 $1,000,000.00 $715.00Burlington Insurance Company

FLOOD

Wildlife Sanctuary of NW Florida Hiles-McLeod Insurance, Inc. 04/03/03-04 3008243796 $500.00 (B)$121,000.00 $823.00105 N. "S" STREET Omaha Property & Casualty (C)$33,100.00

BONDS

Clerk of the Courts Fisher Brown/ 1/2/01-1/4/05 30560701 $0.00 $50,000.00 $689.00Ernie Lee Magaha Fidelity & Deposit

Clerk Honesty & Faithful Holloway Insurance/Performance Blanket Fidelity & Deposit 9/30/01-04 CCP-0013678 $0.00 $25,000.00 $1,284.00

Property Appraiser Fisher Brown/ 1/2/01-1/4/05 POB8526408 $0.00 $25,000.00 $383.00Chris Jones USF&G

Tax Collector Holloway Insurance/ 01/02/01-01/04/05 POB30560701 $0.00 $50,000.00 $962.00Janet Holley Fidelity & DepositPublic Official Bond

Tax CollectorEmployee Honesty & Holloway Insurance/ 09/30/98-2/16/05 18244320 $0.00 $50,000.00 $1,059.24Faithful Perf. Bond Western Surety/C N A

Tax CollectorCommercial Crime Policy Holloway Insurance/ 02/16/97-3/7/05 CCP30508701 $0.00 $100,000.00 $4,502.00Faithful Performance Blanket Western Surety Deposit

(Continued)

104



As of 9/15/03DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUM

ECAT ELECTED OFFICIALS AND MISC.


Volunteers Death andDismemberment and Medical

ECAT - ATCNANCOMECAT Workers' CompECAT Employers Liability Group TravelECAT - ERISA Bond

CIMA

Fisher BrownBridgefield Employers ReinsuranceCAN Insurance CompanyTravelers Indemnity Company


Third Party Pollution Liability (VFD)

Third Party Pollution Liability (County)

ECAT: Required LiabilityECAT: Commercial General LiabilityECAT: Automobile LiabilityECAT: Garage LiabilityECAT: Garage Keepers Legal Liability

WILDLIFE: Commercial General Liability

FLOOD

Wildlife Sanctuary of NW Florida105 N. "S" STREET

BONDS

Clerk of the CourtsErnie Lee Magaha

Clerk Honesty & FaithfulPerformance Blanket

Property AppraiserChris Jones

Tax CollectorJanet HolleyPublic Official Bond

Tax CollectorEmployee Honesty &Faithful Perl. Bond

Tax CollectorCommercial Crime PolicyFaithful Performance Blanket

Southeast Ins. AssociationGreat American

FPLIPA/Commerce & Industry

Southeast Specialty UndenNritersNational Interstate Insurance CompanyNational Interstate Insurance CompanyColony Insurance CompanyEssex Insurance Company

HiIes-McLeod Insurance, Inc.Burlington Insurance Company

HiIes-McLeod Insurance, Inc.Omaha Property & Casualty


Holloway Insurance!Fidelity & Deposit

Fisher Brown/USF&G

Holloway Insurance!Fidelity & Deposit

Holloway Insurance!Western Surety/C N A

Holloway Insurance!Western Surety Deposit

07/01/02-03

12/01/01 -0307/08/03-0410/31/02-03

10/01/02-03

10! 1 !02-03

07/01/03-0407/01/03-0407/01/03-0407/01/03-04

01/08/03-04

04/03/03-04

1/2/01-1/4/05

9/30/01 -04

1/2/01-1/4/05

01/02/01-01/04/05

09/30/98-2/16/05

02/16/97-3/7/05

5P5900304

BEI 0830-25835-0 NoneSR-8309677335BZ1032386928CM

02-TO-00008993 $5,000.00

FPL1953729 $5,000.00

CRTGLF098121CRTCAF097923 $5,000.00CP30330755CA0336 $5,000.00

535B001293 $0.00

3008243796 $500.00

30560701 $0.00

CCP-0013678 $0.00

P088526408 $0.00

POB30560701 $0.00

18244320 $0.00

CCP30508701 $0.00

104

Statutory

$1 ,000,000/$2,000,000

$1 ,000,000/$2,000,000

$10,000,000.00$10,000,000.00$1,000,000.00$500,000.00

$1,000,000.00

(B)$121,000.00(C)$33,100.00

$50,000.00

$25,000.00

$25,000.00

$50,000.00

$50,000.00

$100,000.00

$7,125.00

$175,295.00$1,000.00

$128.00

$960.00

$3,279.00

$16,679.00$330,983.00

$9,681.00$6,755.00

$715.00

$823.00

$689.00

$1,284.00

$383.00

$962.00

$1,059.24

$4,502.00

(Continued)



As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUMVOLUNTEER FIRE DEPARTMENTS

WORKER'S COMPENSATION

*VFDBellview Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Beulah Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Brent Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Cantonment Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Century Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Ensley Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Ferry Pass Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Innerarity Point Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75McDavid Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Molino Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Myrtle Grove Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Pensacola Beach Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Pleasant Grove Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Walnut Hill Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75Warrington Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75West Pensacola Whitman & Whitman Inc./Gallagher Bassett 01/01/03 thru 01/01/04 CSW0000104 00 Statutory $3,118.75

*Accident & Health Whitman & Whitman, Inc. 01/01/03 thru 01/01/04 1028613 $75,000.00 $10,602.00All Depts/ VFD Standard Security $75,000.00 -Death

CASUALTY INSURANCE

*Commercial Package Whitman & Whitman, Inc. 01/01/03 thru 01/01/04 MEPK040919 $102,948.00All Depts/ VFD Arch Insurance Company -Property (all locations) Agreed Value/$9,373,540 -Flood $1,000.00 $1,000,000/each location -Other including wind $250.00 $1,000,000/each location -Auto Policy -Physical Damage $100 $250 -Liability None - General Liability None -Professional

Inland Marine Whitman & Whitman, Inc. 01/01/03 thru 01/01/04 MEIM040920 $61,545.00All Depts/ VFD Arch Insurance Company per schedule -Portable Equipment 100 -Boats 100 -Auto Physical Damage $100 $250 Agreed Value (Fire Apparatus)

*Commercial Umbrella Whitman & Whitman, Inc. 01/01/03 thru 01/01/04 MEUM040921 $1,000,000.00 per occ.All Depts/ VFD Arch Insurance Company $1,000,000 aggregate $10,895.00

(Continued)

105

As of 9/15/03




Table 14

POLICY LIMITS PREMIUMVOLUNTEER FIRE DEPARTMENTS

WORKER'S COMPENSATION

*VFDBellviewBeulahBrentCantonmentCenturyEnsleyFerw Passlnnerarity PointMcDavidMolinoMyrtle GrovePensacola BeachPleasant GroveWalnut HillWarringtonWest Pensacola

*Accident & HealthAll Depts/ VFD

-Death

CASUALTY INSURANCE

*Commercial PackageAll Depts/ VFD

-Property (all locations)-Flood-Other including wind

-Auto Policy-Physical Damage-Liabi|ity

- General Liability-Professional

Inland MarineAll Depts/ VFD

-Portable Equipment-Boats-Auto Physical Damage

(Fire Apparatus)

*Commercial UmbrellaAll Depts/ VFD

Whitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher BassettWhitman & Whitman Inc/Gallagher Bassett

Whitman & Whitman, Inc.Standard Security

Whitman & Whitman, Inc.Arch Insurance Company



01/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/0401/01/03thru 01/01/04

01/01/03thru 01/01/04

01/01/03thru 01/01/04

01/01/03thru 01/01/04

01/01/03thru 01/01/04

CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00CSW0000104 00

1028613

MEPK040919

MEIM040920

MEUM040921

StatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutoryStatutory

$75,000.00$75,000.00

Agreed Value/$9,373,540$1,000.00 $1 ,000,000/each location

$250.00 $1 ,000,000/each location

$100 $250NoneNone

per schedule100100

$250$100 Agreed Value

$1,000,000.00 per occ.$1,000,000 aggregate

105

$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75$3,118.75

$10,602.00

$102,948.00

$61,545.00

$10,895.00(Continued)



As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUMSANTA ROSA ISLAND AUTHORITYWINDSTORM COVERAGEVarious locations Molton, Allen & Williams 9/27/02-03 99530 3% various $16,946.00

Citizens Property Ins. Co.

BUSINESS AUTOMolton, Allen & Williams 10/01/02-03 C2022778756 (Com) $250.00 $1,000,000.00 $29,102.00Transportation Co. (Coll) $500.00

PROPERTY INSURANCEVarious locations Molton, Allen & Williams 10/01/02-03 C2022778773 $2,500.00 various $25,385.00

Continental Casualty Co.

NATIONAL FLOOD#1 Via DeLuna Drive Molton, Allen & Wms 12/11/02-03 133260100 $1,000.00 (B) 500,000 $892.00

Catawba Ins. Co. (C) 300,000

Maintenance Bldg 1 Molton, Allen & Wms 10/30/02-03 144093900 $1,000.00 (B) 300,000 $3,243.00Catawba Ins. Co. (C) 100,000

Visitor's Info Center Molton, Allen & Wms 1/22/03-04 1445987002003 $1,000.00 (B) 200,000 $426.00Catawba Ins. Co. (C) 50,000

Quietwater Rest Station #2 Molton, Allen & Wms 10/16/02-03 145705700 $1,000.00 (B) 100,000 $902.00Catawba Ins. Co.

Casino Beach Restrooms Molton, Allen & Wms 10/01/02-03 145705900 $1,000.00 (B) 125,000 $1,090.00Catawba Ins. Co.

Maintenance Vehicle Shed Molton, Allen & Wms 6/14/03-04 1477946002003 $1,000.00 (B) 150,000 $1,947.00Catawba Ins. Co. (C) 50,000

Quietwater Restrooms Molton, Allen & Wms 9/8/02-03 148048600 $1,000.00 (B) 100,000 $226.00Catawba Ins. Co.

Maintenance Bldg #3 Molton, Allen & Wms 1/26/03-04 1484524002003 $1,000.00 (B) $80,000 $1,569.00Catawba Ins. Co. (C) $60,000

Ft. Pickens Restrooms Molton, Allen & Wms 8/30/02-03 2495303011 $1,000.00 (B)225,000 $1,454.00Catawba Ins. Co.

BONDSEmployee Dishonesty Molton, Allen & Wms 10/01/02-03 PEBKQ1977 $10,000 $471.00

Hartford Ins. Co.

SRIA Public Officials Bonds:Donald L. Ayres Old Republic Surety Co. 9/5/02-continuous OFL0474653 $0.00 $10,000.00 $100.00Thomas E. Blas Old Republic Surety Co. 11/19/02-continuous OFL0474657 $0.00 $10,000.00 $100.00Thomas A. Campanella Old Republic Surety Co. 11/5/02-continuous OFL0474655 $0.00 $10,000.00 $100.00Jimmie Perkins Old Republic Surety Co. 10/17/02-continuous OFL0474656 $0.00 $10,000.00 $100.00William H. Griffith Old Republic Surety Co. 9/17/02-continuous OFL0474654 $0.00 $10,000.00 $100.00W. McGuire Martin Old Republic Surety Co. 11/4/02-11/1/06 POB8117145 $0.00 $10,000.00 $225.00

(Continued)

106

As of 9/15/03




Table 14

POLICY LIMITS PREMIUMSANTA ROSA ISLAND AUTHORITYWINDSTORM COVERAGEVarious locations

BUSINESS AUTO

PROPERTY INSURANCEVarious locations

NATIONAL FLOOD#1 Via DeLuna Drive

Maintenance Bldg 1

Visitor's Info Center

Quietwater Rest Station #2

Casino Beach Restrooms

Maintenance Vehicle Shed

Quietwater Restrooms

Maintenance Bldg #3

Ft. Pickens Restrooms

BONDSEmployee Dishonesty

SRIA Public Officials Bonds:Donald L. AyresThomas E. BlasThomas A. CampanellaJimmie PerkinsWilliam H. GriffithW. McGuire Martin

Molton, Allen & WilliamsCitizens Property Ins. Co.

Molton, Allen & WilliamsTransportation Co.

Molton, Allen & WilliamsContinental Casualty Co.

Molton, Allen & WmsCatawba Ins. Co.









Molton, Allen & WmsHartford Ins. Co.

Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.

9/27/02-03

10/01/02-03

10/01/02-03

12/11/02-03

10/30/02-03

1/22/03-04

10/16/02-03

10/01/02-03

6/1 4/03-04

9/8/02-03

1/26/03-04

8/30/02-03

10/01/02-03

9/5/02-continuous11/19/02-continuous11/5/02-continuous10/17/02-continuous9/17/02-continuous11/4/02-11/1/06

99530

02022778756

02022778773

133260100

144093900

1445987002003

145705700

145705900

1477946002003

148048600

1484524002003

2495303011

PEBKQ1977

OFL0474653OFL0474657OFL0474655OFL0474656OFL0474654P0881 1 7145

3%

(Com) $250.00(Coll) $500.00

$2,500.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$0.00$0.00$0.00$0.00$0.00$0.00

106

various

$1,000,000.00

various

(B) 500,000(C) 300,000

(B) 300,000(C) 100,000

(B) 200,000(C) 50,000

(B) 100,000

(B) 125,000

(B) 150,000(C) 50,000

(B) 100,000

(B) $80,000(C) $60,000

(B)225,000

$10,000

$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00

$16,946.00

$29,102.00

$25,385.00

$892.00

$3,243.00

$426.00

$902.00

$1,090.00

$1,947.00

$226.00

$1,569.00

$1,454.00

$471.00

$100.00$100.00$100.00$100.00$100.00$225.00

(Continued)



As of 9/15/03


CIVIC CENTER


Pensacola Civic Center Near North Insurance Brokerage 10/1/02-10/1/03 WC791391809 None $1,000,000 90,020.00Worker's Compensation Statutory


Pensacola Civic Center/ American Specialty Insurance Services, Inc. 10/1/02-10/1/03 DO64Y00208 None $5,000,000 see belowCommercial Umbrella Liability United States Fidelity & Guaranty Co.

Pensacola Civic Center/ American Specialty Insurance Services, Inc. 10/1/02-10/1/03 DO64L00414 None $1,000,000 see belowCommercial General Liability United States Fidelity & Guaranty Co.

Pensacola Civic Center/ Near North Insurance Brokerage 7/7/01-7/7/03 CRP2171332 $10,000.00 $1,000,000 see belowCrime Insurance

Business Automobile Liability American Specialty Insurance Services, Inc. 10/1/02-10/1/03 D64A00226 None $1,000,000 see belowUnited States Fidelity & Guaranty Co.

TOTAL PREMIUM (1 POLICY): $75,352.00

INCLUDED IN COUNTY'S PACKAGE

Commercial Property Lon Bryan & Company 3/2/03-3/2/04 CRC10167 $100,000.00 $1,000,000 Inc. w/ CountyClarendon National Insurance

Flood Insurance Lon Bryan & Company 3/2/03-3/2/04 6500419822 (B) $500 $250,000 $1,527.00Travelers Property & Casualty (C) $500 $250,000

(Continued)

107

As of 9/15/03




Table 14

POLICY LIMITS PREMIUM

CIVIC CENTER


Pensacola Civic CenterWorker's Compensation

Near North Insurance Brokerage


Pensacola Civic Center!Commercial Umbrella Liability

Pensacola Civic Center!Commercial General Liability

Pensacola Civic Center!Crime Insurance

Business Automobile Liability

TOTAL PREMIUM (1 POLICY):

INCLUDED IN COUNTY'S PACKAGE

Commercial Property

Flood Insurance

American Specialty Insurance Services, Inc.United States Fidelity & Guaranty Co.


Near North Insurance Brokerage


Lon Bryan & CompanyClarendon National Insurance


10!1!02-10/1/03

10!1!02-10/1/03

10!1!02-10/1/03

7/7/01-7/7/03

10!1!02-10/1/03

3/2/03-3/2/04

3/2/03-3/2/04

WC791391809

DO64Y00208

DO64L00414

CRP2171332

D64A00226

CRC10167

6500419822

None

None

None

$10,000.00

None

$100,000.00

(B) $500(0) $500

107

$1,000,000Statutory

$5,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$250,000$250,000

90,020.00

see below

see below

see below

see below

$75,352.00

Inc. w/ County

$1,527.00

(Continued)



As of 9/15/03

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS PREMIUMSHERIFF'S OFFICE

PROPERTY & CASUALTY INSURANCE:

Sheriff's Auto Liability/Physical Damage Hunt Ins. Grp/Sharp 10/1/02-10/1/03 BA02A-17-87 None $100,000/person $318,393.00$200,000/occurrence$500,000 contingencies

Law Enforcement Professional Liability Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 02P-17-81 None $3,100,000/person $793,140.00$3,300,000/occurrence

Inmate Medical Excess Loss Hunt Ins. Grp/ 10/1/02-10/1/03 200-5191 None $1,000,000 $52,925.00Lexington Insurance Co.

Horse Accidental Death & Destruction Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 03P-17-81 None $17,500 $350.00

Watercraft Liability Coverage Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 03P-17-81 None Legal liability of operation $1,000.00

Watercraft Hull Coverage Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 03P-17-81 $1000/claim $32,500 $813.00

Aircraft Liability Hunt Ins. Grp/ 11/5/02-11/5/03 ACN770338 None Physical Damage $10,010.00Westchester Fire Ins.

BONDS:

Sheriff Ron McNesby Fisher Brown/ Fidelity 01/2/01-1/4/05 POB8526402 None $25,000 $383.00Deposit Co.

Sheriff Ron McNesby Excess Hunt Ins./FSSIF 10/1/02-10/1/03 03P-17-81 None $100,000/300,000 $25,000.00

Deputy Sheriff's Blanket Hunt Ins./Western 10/1/02-10/1/03 18258230 None $1000 Per Deputy $2,265.00Surety Deposit

Sheriff's Public Employee Blanket Hunt Ins./FSSIF 10/1/02-10/1/03 03P-17-81 $200/claim $50,000 $897.00

Sheriff's Broad Form Money & Hunt Ins./FSSIF 10/1/02-10/1/03 03P-17-81 $200/claim $10,000 $832.00Securities Coverage

Sheriff's Flash Roll Money Coverage Hunt Ins./FSSIF 10/1/02-10/1/03 03P-17-81 $5000/claim $50,000 $2,750.00(Continued)

108

As of 9/15/03




Table 14

POLICY LIMITS PREMIUMSHERIFF'S OFFICE

PROPERTY & CASUALTY INSURANCE:

Sheriffs Auto Liability/Physical Damage

Law Enforcement Professional Liability

Inmate Medical Excess Loss

Horse Accidental Death & Destruction

Watercraft Liability Coverage

Watercraft Hull Coverage

Aircraft Liability

BONDS:

Sheriff Ron McNesby

Sheriff Ron McNesby Excess

Deputy Sheriffs Blanket

Sheriffs Public Employee Blanket

Sheriffs Broad Form Money &Securities Coverage

Sheriffs Flash Roll Money Coverage

Hunt Ins. Grp/Sharp

Hunt Ins. Grp/FSSIF

Hunt Ins. Grp/Lexington Insurance Co.

Hunt Ins. Grp/FSSIF

Hunt Ins. Grp/FSSIF

Hunt Ins. Grp/FSSIF

Hunt Ins. Grp/Westchester Fire lns.

Fisher Brown/ FidelityDeposit Co.

Hunt lns./FSS|F

Hunt Ins/WesternSurety Deposit

Hunt lns./FSS|F

Hunt lns./FSS|F

Hunt lns./FSS|F

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

11/5/02-11/5/03

01/2/01-1/4/05

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

10/1/02-10/1/03

BA02A-17-87

02P-17-81

200-5191

03P-17-81

03P-17-81

03P-17-81

ACN770338

P088526402

03P-17-81

18258230

03P-17-81

03P-17-81

03P-17-81

None

None

None

None

None

$1 DOG/claim

None

None

None

None

$200/claim

$200/claim

$5000/claim

108

$100,000/person$200,000/occurrence$500,000 contingencies

$3,100,000/person$3,300,000/occurrence

$1,000,000

$1 7,500

Legal liability of operation

$32,500

Physical Damage

$25,000

$100,000/300,000

$1000 Per Deputy

$50,000

$10,000

$50,000

$318,393.00

$793,140.00

$52,925.00

$350.00

$1,000.00

$813.00

$10,010.00

$383.00

$25,000.00

$2,265.00

$897.00

$832.00

$2,750.00(Continued)



As of 9/15/03


SELF INSURANCE


Commercial Package - (TIV $246,231,570) Lon Bryan & Company $100,000.00 Primary $2.5mil CRC/Lloyds Underwriters 1/1/03-04 CRC-12615 $2,500,000.00 $332,504.00 $5m Excess of $2.5m CRC/United States Fire Ins. Co. 1/1/03-04 245003111 $7,500,000.00 $225,229.00 $7.5m Excess of $7.5m CRC/Hartford Fire Ins. Co. 1/1/03-04 GX0001427 $15,000,000.00 $90,094.00 $2.5m Excess of $15m CRC/Excess Ins. Co. 1/1/03-04 ESP0085 $17,500,000.00 $27,504.00 $2.5m Excess of $17.5m CRC/Great American E&S Ins. Co. 1/1/03-04 GP5904332 $20,000,000.00 $27,504.00 $5m Excess of $20m CRC/Glencoe Ins. Ltd. 1/1/03-04 AR-25050-00 $25,000,000.00 $25,004.00 $175m Excess of $25m CRC/Royal Surlus Lines Ins., Co. 1/1/03-04 K2HD322728 $200,000,000.00 $82,504.00

Boiler and Machinery Lon Bryan & Company 1/1/03-04 FBP2286547 $10,000.00 $50,000.00 $19,300.00

109

As of 9/15/03




Table 14

POLICY LIMITS PREMIUM

SELF INSURANCE


Commercial Package - (TIV $246,231,570) Lon Bryan & CompanyPrimary $2.5mil CRC/Lloyds Underwriters$5m Excess of $2.5m CRC/United States Fire Ins. Co.$7.5m Excess of $7.5m CRC/Hartford Fire Ins. Co.$2.5m Excess of $15m CRC/Excess Ins. Co.$2.5m Excess of $17.5m CRC/Great American E&S Ins. Co.$5m Excess of $20m CRC/Glencoe Ins. Ltd.$175m Excess of $25m CRC/Royal Surlus Lines Ins., Co.

Boiler and Machinery Lon Bryan & Company

1/1/03-041/1/03-041/1/03-041/1/03-041/1/03-041/1/03-041/1/03-04

1/1/03-04

CRC-126152450031 1 1GX0001427ESP0085GP5904332AR-25050-00K2HD322728

FBP2286547

$100,000.00

$10,000.00

109

$2,500,000.00$7,500,000.00$15,000,000.00$17,500,000.00$20,000,000.00$25,000,000.00$200,000,000.00

$50,000.00

$332,504.00$225,229.00$90,094.00$27,504.00$27,504.00$25,004.00$82,504.00

$19,300.00

CONTINUING DISCLOSURE SECTION

(Unaudited) The continuing disclosure section includes information on each outstanding bond, other county debt and refunded bonds.

CONTINUING DISCLOSURE SECTION

(Unaudited)

The continuing disclosure section includes information on each outstanding bond, other county debtand refunded bonds.

PLEDGED REVENUES

(Unaudited)

PLEDGED REVENUES

(Unaudfled)

110

REVENUES PLEDGED TO BONDS BOB TOURIST SIKES CONSITUTIONAL HALF-CENT DEVELOPMENT LEASE YEAR BRIDGE GAS TAX SALES TAX TAX REVENUES 1986 $7,194,143 $702,296 1987 7,606,855 886,713 1988 8,994,282 1,102,545 1989 9,226,659 1,624,092 1990 $2,717,934 9,878,328 1,538,823 1991 2,637,060 9,684,913 1,620,017 1992 2,585,446 10,362,850 1,720,792 1993 2,670,116 11,394,208 1,827,822 1994 $1,345,920 2,561,665 11,932,144 1,909,283 1995 1,172,523 3,051,326 13,294,438 2,109,896 1996 1,295,335 2,857,933 14,555,787 2,446,325 1997 1,714,785 2,869,447 14,795,651 3,252,203 1998 1,472,784 3,009,212 15,472,523 3,292,209 1999 849,649 3,090,775 16,357,673 3,236,485 2000 1,312,361 3,160,798 17,009,339 2,774,474 2001 1,977,972 3,151,753 16,695,742 3,784,756 2002 1,988,431 3,113,561 18,174,275 3,930,893 2003 1,307,046 1,854,716 10,543,353 2,118,435 593,333

BOBSIKES

YEAR BRIDGE

198619871988198919901991199219931994199519961997199819992000200120022003

$1,345,9201,172,5231,295,3351,714,7851,472,784

849,6491,312,3611,977,9721,988,4311,307,046

REVENUES PLEDGED TO BONDS

GAS TAX

$2,717,9342,637,0602,585,4462,670,1162,561,6653,051,3262,857,9332,869,4473,009,2123,090,7753,160,7983,151,7533,113,5611,854,716

CONSITUTIONAL HALF-CENTSALES TAX

$7,194,1437,606,8558,994,2829,226,6599,878,3289,684,913

10,362,85011,394,20811,932,14413,294,43814,555,78714,795,65115,472,52316,357,67317,009,33916,695,74218,174,27510,543,353

110

TOURISTDEVELOPMENT LEASETAX

$702,296886,713

1,102,5451,624,0921,538,8231,620,0171,720,7921,827,8221,909,2832,109,8962,446,3253,252,2033,292,2093,236,4852,774,4743,784,7563,930,8932,118,435

REVENUES

593,333

111


BOB SIKES TOLL BRIDGE REVENUES

OVERVIEW The Bob Sikes Bridge connects Gulf Breeze, Florida, located in Santa Rosa County, to Pensacola Beach which is Escambia County. The bridge was operated and owned by the State of Florida, Department of Transportation prior to the County acquiring the bridge. Funding to purchase the bridge from the State was obtained from the issuance of the Road Improvement Revenue Bonds, Series 1993A (Refunded by Capital Improvement Revenue Bonds Series 2002) and 1993B. This bridge was opened in 1972 and is a two-mile long four-lane facility. Users of the bridge must pay tolls of: Cash Tolls – One way onto Santa Rosa Island Passenger Cars $1.00 Trucks/Buses/3 or more Axles (plus 50 cents per Axle) $1.00 Trailers $1.00 Annual Permits – Good for unlimited trips Passenger Cars & Trucks $50.00 Commercial Trucks/ Buses (3 or more axles) $70.00 (1993A Revenue Bonds were Redeemed by the Capital Improvement Bonds Series 2002.)

PLEDGE: The net revenues generated from the Bob Sikes tolls, other incomes and the Constitutional Gas Tax revenues are pledged to payment of principal and interest of the Road Improvement Revenue Bonds, Series 1993B. The required debt coverage test for Additional Parity Bonds equals 1.75 times the Maximum Bond Service Requirement for all debt. Additionally, the toll bridge revenue, along with the Santa Rosa Island Authority lease fees are pledged to the payment of the Capital Improvement Revenue Bonds Series 2002. TAX INFORMATION: Tax Rate – Tolls/ Permits Year Began – 1972

REVENUES PLEDGED TO BONDSBOB SIKES TOLL BRIDGE REVENUES

OVERVIEWThe Bob Sikes Bridge connects Gulf Breeze,Florida, located in Santa Rosa County, toPensacola Beach which is Escambia County.The bridge was operated and owned by theState of Florida, Department of Transportationprior to the County acquiring the bridge.Funding to purchase the bridge from the Statewas obtained from the issuance of the RoadImprovement Revenue Bonds, Series 1993A(Refunded by Capital Improvement RevenueBonds Series 2002) and 19938. This bridgewas opened in 1972 and is a two-mile longfour-lane facility. Users of the bridge must paytolls of:

Cash Tolls — One way onto Santa Rosa IslandPassenger Cars $1.00Trucks/Buses/3 or moreAxles (plus 50 cents perAxle)Trailers

$1.00$1.00

Annual Permits — Good for unlimited tripsPassenger Cars & Trucks $50.00Commercial Trucks/Buses (3 or more axles) $70.00

(1993A Revenue Bonds were Redeemed bythe Capital Improvement Bonds Series 2002.)

111

PLEDGE:The net revenues generated from the BobSikes tolls, other incomes and theConstitutional Gas Tax revenues are pledgedto payment of principal and interest of theRoad Improvement Revenue Bonds, Series19938. The required debt coverage test forAdditional Parity Bonds equals 1.75 times theMaximum Bond Service Requirement for alldebt. Additionally, the toll bridge revenue,along with the Santa Rosa Island Authoritylease fees are pledged to the payment of theCapital Improvement Revenue Bonds Series2002.

TAX INFORMATION:Tax Rate — Tolls/ PermitsYear Began — 1972

112

REVENUES PLEDGED TO BONDS 80% AND 20% PORTION OF CONSTITUTIONAL GAS TAX

OVERVIEW: Surplus Gas Tax Revenues are collected by the State from the sales by retailers of gasoline, gasohol and special fuel within the boundaries of the County. Pursuant to Section 206.47(7), FS, the Constitutional Gas Tax proceeds must first be used to meet the debt service requirements, if applicable, from the 80% portion and, if necessary, from the 20% portion. The remaining proceeds distributed back to the counties must be used for the acquisition, construction, and maintenance of roads. The distribution of monies from this tax is computed by a formula comprised of three components: an area component, a population component, and a collection component. The distribution factor is as follows: 1 X County Area 4 State Area + 1 X County Population

4 State Population + 1 X # of Fuel Gals. (Co.) 4 # of Fuel Gals. (State) = County’s Distribution Factor

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Road Improvement Revenue Bonds, Series 1993B. Required debt coverage test for Additional Parity Bonds equals 1.75 times the Maximum Bond Service Requirement of the Road Improvement Revenue Bonds, Series 1993A (Refunded by the Capital Improvement Revenue Bonds, Series 2002) and 1.50 times the Maximum Bond Service Requirement of the Road Improvement Revenue Bonds, Series 1993B. TAX INFORMATION: Tax Rate – 2 cents per gallon Year Began – 1943

REVENUES PLEDGED TO BONDS80% AND 20% PORTION OF CONSTITUTIONAL GAS TAX

OVERVIEW:Surplus Gas Tax Revenues are collected bythe State from the sales by retailers ofgasoline, gasohol and special fuel within theboundaries of the County. Pursuant toSection 206.47(7), FS, the Constitutional GasTax proceeds must first be used to meet thedebt service requirements, if applicable, fromthe 80% portion and, if necessary, from the20% portion. The remaining proceedsdistributed back to the counties must be usedfor the acquisition, construction, andmaintenance of roads. The distribution ofmonies from this tax is computed by a formulacomprised of three components: an areacomponent, a population component, and acollection component. The distribution factoris as follows:

X County AreaState Aream—

x

X County PopulationState Population

X # of Fuel Gals. (00.)# of Fuel Gals. (State)

m—x

m—x

= County’s Distribution Factor

112

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Road Improvement RevenueBonds, Series 19938. Required debtcoverage test for Additional Parity Bondsequals 1.75 times the Maximum Bond ServiceRequirement of the Road ImprovementRevenue Bonds, Series 1993A (Refunded bythe Capital Improvement Revenue Bonds,Series 2002) and 1.50 times the MaximumBond Service Requirement of the RoadImprovement Revenue Bonds, Series 1993B.

TAX INFORMATION:Tax Rate — 2 cents per gallonYear Began — 1943

113


LOCAL GOVERNMENT HALF-CENT SALES TAX

OVERVIEW: Pursuant to Chapter 212, Florida Statutes, the State of Florida is authorized to levy and collect a sales tax on, among other things, the sales price of each item or article of tangible personal property sold at retail in the State of Florida, subject to certain exceptions and dealer allowances. Chapter 212 was amended in 1982 to increase the sales tax from 4% to 5% and was further amended in 1988 to increase the sales tax from 5% to 6%. One-half of the fifth cents was devoted to the Program, thus giving rise to the name “Half-Cent Sales Tax.” Since 1993, the proportion of sales tax revenue deposited in the Local Government Half-Cent Sales Tax Trust Fund in the State Treasury has been constant at 9.653%. The funds are earmarked for distribution to the governing body of such county and of each participating municipality within that county pursuant to the following distribution formula: unincorporated area 2/3 incorporated population + area population total county 2/3 incorporated population + area population Section 218.64, Florida Statutes, permits local governments to pledge their share of the proceeds for the payment of the principal and interest on bonds issued for the financing of any capital project.

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Sales Tax Refunding Revenue Bonds, Series 2002 issued by the County. Required debt coverage for Additional Parity Bonds equals 1.35 times the Maximum Bond Service Requirement for all debt. TAX INFORMATION: Tax Rate – 9.653% of Adjusted Sales Tax Collections. Year Began – 1982

REVENUES PLEDGED TO BONDSLOCAL GOVERNMENT HALF-CENT SALES TAX

OVERVIEW:Pursuant to Chapter 212, Florida Statutes, theState of Florida is authorized to levy andcollect a sales tax on, among other things, thesales price of each item or article of tangiblepersonal property sold at retail in the State ofFlorida, subject to certain exceptions anddealer allowances. Chapter 212 wasamended in 1982 to increase the sales taxfrom 4% to 5% and was further amended in1988 to increase the sales tax from 5% to 6%.One-half of the fifth cents was devoted to theProgram, thus giving rise to the name “Half-Cent Sales Tax.” Since 1993, the proportionof sales tax revenue deposited in the LocalGovernment Half-Cent Sales Tax Trust Fundin the State Treasury has been constant at9.653%. The funds are earmarked fordistribution to the governing body of suchcounty and of each participating municipalitywithin that county pursuant to the followingdistribution formula:

2/3 incorporatedarea population2/3 incorporatedarea population

unincorporated areapopulation +total countypopulation +

Section 218.64, Florida Statutes, permits localgovernments to pledge their share of theproceeds for the payment of the principal andinterest on bonds issued for the financing ofany capital project.

113

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Sales Tax Refunding RevenueBonds, Series 2002 issued by the County.Required debt coverage for Additional ParityBonds equals 1.35 times the Maximum BondService Requirement for all debt.

TAX INFORMATION:Tax Rate — 9.653% of Adjusted Sales TaxCollections.Year Began — 1982

114

REVENUES PLEDGED TO BONDS TOURIST DEVELOPMENT TAX

OVERVIEW: Florida Statute 125.0104 provides for the imposition of the Tourist Development Tax. Three taxes are levied by the County: Original 2% Tax, Additional 1% Tax and the Professional Sports Franchise Facility Tax. Transient rental transactions and the sale of food and beverages consumed on hotel or motel premises located in specified charter counties are subject to the tax. The revenues generated from the tax may be used for certain types of capital construction, tourist promotion, and beach and shoreline maintenance. The utilization of the funds collected from the Tourist Development Tax is governed by County Ordinance 2003-11. Revenues are allocated and applied only in order of priority as follows: 1) The operation, maintenance, improvement, etc. of civic arenas (sports, cultural, convention complexes) within the boundaries of Escambia County, including any payments required for debt service on obligations incurred for such purposes. 2) The financing of beach improvement, maintenance, erosion control, etc. of tourist facilities at Pensacola Beach and Perdido Key. 3) A minimum of 30% of the Tourist Tax collected (remaining after payment of 1 and 2) for the promotion, development and advertisement of Escambia County tourism. 4) Allocate a minimum of $200,000 annually (remaining after payment of 1, 2, and 3) to the renewal and replacement fund for the Pensacola Civic Center financed from the Tourist Development Tax Revenues. 5) Any unspent and unencumbered Tourist Development Tax revenues will be used for any lawful purpose for Tourist Development.

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Tourist Development Refunding Revenue Bonds, Series 2002 issued by the County. The debt coverage test for Additional Parity Bonds equals 1.5 times the Maximum Bond Service Requirement for all debt. TAX INFORMATION: Tax Rate – 3% Year Began – 1977 Additional Tax Rate – 1% Dates Effective: May 1, 1996 – April 30, 1999 August 1, 2000 – The 1% tax shall automatically expire upon the retirement of all debt financing for the expanded soccer center.

REVENUES PLEDGED TO BONDSTOURIST DEVELOPMENT TAX

OVERVIEW:Florida Statute 125.0104 provides for theimposition of the Tourist Development Tax.Three taxes are levied by the County: Original2% Tax, Additional 1% Tax and theProfessional Sports Franchise Facility Tax.Transient rental transactions and the sale offood and beverages consumed on hotel ormotel premises located in specified chartercounties are subject to the tax. The revenuesgenerated from the tax may be used forcertain types of capital construction, touristpromotion, and beach and shorelinemaintenance.

The utilization of the funds collected from theTourist Development Tax is governed byCounty Ordinance 2003-11. Revenues areallocated and applied only in order of priorityas follows: 1) The operation, maintenance,improvement, etc. of civic arenas (sports,cultural, convention complexes) within theboundaries of Escambia County, including anypayments required for debt service onobligations incurred for such purposes. 2) Thefinancing of beach improvement,maintenance, erosion control, etc. of touristfacilities at Pensacola Beach and Perdido Key.3) A minimum of 30% of the Tourist Taxcollected (remaining after payment of 1 and 2)for the promotion, development andadvertisement of Escambia County tourism.4) Allocate a minimum of $200,000 annually(remaining after payment of 1, 2, and 3) to therenewal and replacement fund for thePensacola Civic Center financed from theTourist Development Tax Revenues. 5) Anyunspent and unencumbered TouristDevelopment Tax revenues will be used forany lawful purpose for Tourist Development.

114

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Tourist Development RefundingRevenue Bonds, Series 2002 issued by theCounty. The debt coverage test for AdditionalParity Bonds equals 1.5 times the MaximumBond Service Requirement for all debt.

TAX INFORMATION:Tax Rate — 3%Year Began — 1977

Additional Tax Rate — 1%Dates Effective:

May 1, 1996 —April 30, 1999August 1, 2000 — The 1% tax shallautomatically expire upon theretirement of all debt financing for theexpanded soccer center.

115

REVENUES PLEDGED TO BONDS SANTA ROSA ISLAND AUTHORITY LEASE FEES

OVERVIEW: The Santa Rosa Island Authority was created in 1947 as the governing body for Pensacola Beach. Because of a deed restriction placed on the transfer of title from the US Department of Interior to Escambia County, the fee estate to all property on Pensacola Beach is owned by Escambia County. The Authority has leased such property to private individuals and corporations pursuant to leases that generally are for a term of ninety-nine (99) years. Leaseholders pay annual lease fees as follows: Commercial – minimum fee ranging from $100 to $50,000 depending on type of lease or percentage of leaseholder’s gross income (1% - 5% depending on type of lease); whichever is greater. Residential - $100 - $3,000 per year.

PLEDGE: Santa Rosa Island Authority has pledged a guaranteed $560,000 of lease fees annually toward the payment of principal and interest of the Capital Improvement Revenue Bonds Series 2002. Additionally, the Santa Rosa Island Authority has pledged a guaranteed $40,000 of lease fees annually toward the payment of principal and interest of the Tourist Development Refunding Revenue Bonds, Series 2002. Both bonds have a required debt coverage test for Additional Parity Bonds equals 1.50 times the maximum Bond Service Requirement for all bonds then outstanding. TAX INFORMATION: Tax Rate – Lease Fees. Year Began – 2003

REVENUES PLEDGED TO BONDSSANTA ROSA ISLAND AUTHORITY LEASE FEES

OVERVIEW:The Santa Rosa Island Authority was createdin 1947 as the governing body for PensacolaBeach. Because of a deed restriction placedon the transfer of title from the US Departmentof Interior to Escambia County, the fee estateto all property on Pensacola Beach is ownedby Escambia County. The Authority hasleased such property to private individuals andcorporations pursuant to leases that generallyare for a term of ninety-nine (99) years.Leaseholders pay annual lease fees asfollows:

Commercial — minimum fee ranging from $100to $50,000 depending on type of lease orpercentage of Ieaseholder’s gross income (1%- 5% depending on type of lease); whicheveris greater.

Residential - $100 - $3,000 per year.

115

PLEDGE:Santa Rosa Island Authority has pledged aguaranteed $560,000 of lease fees annuallytoward the payment of principal and interest ofthe Capital Improvement Revenue BondsSeries 2002. Additionally, the Santa RosaIsland Authority has pledged a guaranteed$40,000 of lease fees annually toward thepayment of principal and interest of the TouristDevelopment Refunding Revenue Bonds,Series 2002. Both bonds have a required debtcoverage test for Additional Parity Bondsequals 1.50 times the maximum Bond ServiceRequirement for all bonds then outstanding.

TAX INFORMATION:Tax Rate — Lease Fees.Year Began — 2003

OUTSTANDING BONDS

(Unaudited)

OUTSTANDING BONDS

(Unaudited)

116

$12,630,000 ESCAMBIA COUNTY, FLORIDA

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B Dated: December 1, 1993

(Unaudited) PURPOSE: 1. Finance a portion of the amounts

payable to the State of Florida pursuant to a Transfer Agreement between the County and the State in connection with the acquisition of the Bob Sikes Bridge connecting Gulf Breeze, Florida with Pensacola Beach, Florida.

2. Pay the costs of issuing the Series B Bonds.

3. Establish required reserves. SECURITY: The Series 1993B Bonds and the interest thereon are payable solely from and secured by an irrevocable lien upon and pledge of: 1. Surplus Gas Tax Revenues, and 2. Moneys held in the funds and

accounts thereunder and the income investment thereof on a parity with the Road Improvement Revenue Bonds, Series 1993A, until otherwise applied as provided in the Resolution.

AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Berkeley Street, 7-E, New York, NY 10286, (800) 254-2826 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984

RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Fitch’s – AAA Insurer – FGIC FORM: The Bonds were issued in denomination of $5,000 or any integral multiple thereof. Interest on the 1993B Bonds became payable July 1, 1994 and semiannually thereafter on January 1 and July 1. ISSUED AS: $12,630,000 Serial Bonds REDEMPTION PROVISIONS: The Series 1993B Bonds maturing on or before January 1, 2004 are not subject to optional redemption prior to their respective dates of maturity.

Optional Redemption The Series 1993B Bonds maturing on or after January 1, 2005 are subject to redemption prior to their respective stated dates of maturity at the option of the County, in whole or in part in such order of maturity as the County may determine on any date on or after January 1, 2004, at the following redemption prices together with accrued interest to the redemption rate. Redemption Period Redemption (dates inclusive) Price 01/01/04 through 12/30/04 102% 01/01/05 through 12/31/05 101% 01/01/06 and thereafter 100%

$12,630,000ESCAMBIA COUNTY, FLORIDA

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993BDated: December 1, 1993

(Unaudited)

PURPOSE:1. Finance a portion of the amounts

payable to the State of Floridapursuant to a Transfer Agreementbetween the County and the State inconnection with the acquisition of theBob Sikes Bridge connecting GulfBreeze, Florida with PensacolaBeach, Florida.

2. Pay the costs of issuing the Series BBonds.

3. Establish required reserves.

SECURITY:The Series 1993B Bonds and the interestthereon are payable solely from and securedby an irrevocable lien upon and pledge of:1. Surplus Gas Tax Revenues, and2. Moneys held in the funds and

accounts thereunder and the incomeinvestment thereof on a parity with theRoad Improvement Revenue Bonds,Series 1993A, until othenNise appliedas provided in the Resolution.

AGENTS:Registrar— The Bank of New York, CorporateTrust Department, 10161 Centurion Parkway,Jacksonville, FL or The Bank of New York,Trust Company of Florida, NA, Church StreetStation, PO Box 11214, New York, NY 10286-1214Paying Agent — The Bank of New York, BondRelations, Corporate Trust Operations, FiscalAgencies Department, 101 Berkeley Street, 7-E, New York, NY 10286, (800) 254-2826Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

116

RATINGS:Moody’s — AaaStandard & Poor’s — AAAFitch’s — AAAInsurer — FGIC

FORM:The Bonds were issued in denomination of$5,000 or any integral multiple thereof.Interest on the 19938 Bonds became payableJuly 1, 1994 and semiannually thereafter onJanuary 1 and July 1.

ISSUED AS:$12,630,000 Serial Bonds

REDEMPTION PROVISIONS:The Series 1993B Bonds maturing on orbefore January 1, 2004 are not subject tooptional redemption prior to their respectivedates of maturity.

Optional RedemptionThe Series 1993B Bonds maturing on or afterJanuary 1, 2005 are subject to redemptionprior to their respective stated dates ofmaturity at the option of the County, in wholeor in part in such order of maturity as theCounty may determine on any date on or afterJanuary 1, 2004, at the following redemptionprices together with accrued interest to theredemption rate.

RedemptionPrice102%101%100%

Redemption Period(dates inclusive)01/01/04 through 12/30/0401/01/05 through 12/31/0501/01/06 and thereafter

117

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B

(Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/03)

(Unaudited)

Bond Year % Ending Interest Total

January 1 Rate Principal Interest Debt Service

2004 4.625 $895,000 $297,056 $1,192,056 2005 4.750 935,000 255,663 1,190,663 2006 5.000 980,000 211,250 1,191,250 2007 5.000 1,030,000 162,250 1,192,250 2008 5.000 1,080,000 110,750 1,190,750 2009 5.000 1,135,000 56,750 1,191,750

TOTALS $6,055,000 $1,093,719 $7,148,719

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B(Continued)

DEBT SERVICE SCHEDULE:(As of 09/30/03)

(Unaudited)

Bond Year %Ending Interest

January 1 Rate Principal Interest

2004 4.625 $895,000 $297,0562005 4.750 935,000 255,6632006 5.000 980,000 211,2502007 5.000 1,030,000 162,2502008 5.000 1,080,000 110,7502009 5.000 1,135,000 56,750

TotalDebt Service

$1,192,0561,190,6631,191,2501,192,2501,190,7501,191,750

TOTALS $6,055,000 $1,093,719

117

$7,148,719

118


SALES TAX REVENUE REFUNDING BONDS, SERIES 2002 Dated: September 1, 2002

(Unaudited) PURPOSE: The Sales Tax Refunding Revenue Bonds, Series 2002 were issued to finance the costs of refunding all of the Sales Tax Revenue Refunding Bonds, Series 1993; to finance the cost of certain capital improvement projects; and to pay a portion of the costs of issuance of the 2002 Bonds. SECURITY: The Bonds are secured by a pledge of, among other things, the proceeds of the Local Government Half-Cent Sales Tax, as defined and described in, and distributed to the County under, Part VI of Chapter 218, Florida Statutes, as amended, and by amounts held in certain funds and accounts held pursuant to the Bond Resolution on a parity with the Sales Tax Revenue Bonds, Series 1993. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Garden Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Insurer – Ambac Assurance FORM: The 2002 Bonds are issued in fully registered form, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds began payment on October 1, 2003, and semiannual thereafter on April 1 and October 1 of each year.

ISSUED AS: $41,355,000 Serial Bonds $48,375,000 Term Bonds due 10/01/2033 REDEMPTION PROVISIONS: 2002 Bonds maturing prior to October 1, 2013, are not subject to redemption prior to their respective stated dates of maturity. Optional Redemption 2002 Bonds maturing on October 1, 2013, and thereafter are subject to redemption in whole or in part on any interest payment date thereafter. Redemption Period Redemption (dates inclusive) Price 10/01/2012 through 09/30/2013 101% 10/01/2013 and thereafter 100% Sinking Fund Redemption The 2002 Bonds due October 1, 2033 are subject to mandatory redemption in part prior to maturity by lot through Amortization Installments by operation of the Bond Amortization Account, at redemption prices equal to 100% of the principal amount thereof plus interest accrued to the redemption date.


SALES TAX REVENUE REFUNDING BONDS, SERIES 2002Dated: September 1, 2002

(Unaudited)

PURPOSE:The Sales Tax Refunding Revenue Bonds,Series 2002 were issued to finance the costsof refunding all of the Sales Tax RevenueRefunding Bonds, Series 1993; to finance thecost of certain capital improvement projects;and to pay a portion of the costs of issuance ofthe 2002 Bonds.

SECURITY:The Bonds are secured by a pledge of, amongother things, the proceeds of the LocalGovernment Half-Cent Sales Tax, as definedand described in, and distributed to the Countyunder, Part VI of Chapter 218, FloridaStatutes, as amended, and by amounts held incertain funds and accounts held pursuant tothe Bond Resolution on a parity with the SalesTax Revenue Bonds, Series 1993.

AGENTS:Registrar — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631Paying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Garden Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s — AAAInsurer — Ambac Assurance

FORM:The 2002 Bonds are issued in fully registeredform, in denominations of $5,000 or anyintegral multiple thereof. Interest on the 2002Bonds began payment on October 1, 2003,and semiannual thereafter on April 1 andOctober 1 of each year.

118

ISSUED AS:$41,355,000 Serial Bonds$48,375,000 Term Bonds due 10/01/2033

REDEMPTION PROVISIONS:2002 Bonds maturing prior to October 1, 2013,are not subject to redemption prior to theirrespective stated dates of maturity.

Optional Redemption2002 Bonds maturing on October 1, 2013, andthereafter are subject to redemption in wholeor in part on any interest payment datethereafter.

Redemption Period(dates inclusive)10/01/2012 through 09/30/201310/01/2013 and thereafter

RedemptionPrice101%100%

Sinking Fund RedemptionThe 2002 Bonds due October 1, 2033 aresubject to mandatory redemption in part priorto maturity by lot through Amortizationlnstallments by operation of the BondAmortization Account, at redemption pricesequal to 100% of the principal amount thereofplus interest accrued to the redemption date.

119

SALES TAX REVENUE REFUNDING BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/03) (Unaudited)

Bond Year %Ending Interest TotalOctober Rate Principal Interest Debt Service

Serial Bonds: ($41,355,000)2004 2.00 $0 $4,065,545 $4,065,5452005 2.00 1,680,000 4,065,545 5,745,5452006 2.25 1,715,000 4,031,945 5,746,9452007 2.60 1,755,000 3,993,358 5,748,3582008 3.65 1,800,000 3,947,728 5,747,7282009 3.00 1,865,000 3,880,328 5,745,3282010 3.25 1,925,000 3,824,378 5,749,3782011 3.25 1,985,000 3,761,815 5,746,8152012 3.40 2,050,000 3,695,318 5,745,3182013 3.65 2,120,000 3,625,618 5,745,6182014 5.25 2,200,000 3,548,238 5,748,2382015 5.25 2,315,000 3,432,738 5,747,7382016 5.25 2,435,000 3,311,200 5,746,2002017 5.25 2,565,000 3,183,363 5,748,3632018 5.25 2,700,000 3,048,700 5,748,7002019 5.00 2,840,000 2,906,950 5,746,9502020 5.00 2,985,000 2,764,950 5,749,9502021 5.00 3,130,000 2,615,700 5,745,7002022 4.81 3,290,000 2,459,196 5,749,196

SUBTOTAL $41,355,000 $66,162,609 $107,517,609

Term Bonds: ($48,375,000)2023 4.75 $3,450,000 $2,297,813 $5,747,8132024 4.75 3,615,000 2,133,938 5,748,9382025 4.75 3,785,000 1,962,225 5,747,2252026 4.75 3,965,000 1,782,438 5,747,4382027 4.75 4,155,000 1,594,100 5,749,1002028 4.75 4,350,000 1,396,738 5,746,7382029 4.75 4,555,000 1,190,113 5,745,1132030 4.75 4,775,000 973,750 5,748,7502031 4.75 5,000,000 746,938 5,746,9382032 4.75 5,240,000 509,438 5,749,4382033 4.75 5,485,000 260,538 5,745,538

SUBTOTAL 48,375,000 14,848,026 63,223,026TOTAL $89,730,000 $81,010,634 $170,740,634

SALES TAX REVENUE REFUNDING BONDS, SERIES 2002(Continued)


(Unaudited)Bond Year %

Ending Interest TotalOctober Rate Principal Interest Debt Service

Serial Bonds: ($41,355,000)2004 2.00 $0 $4,065,545 $4,065,5452005 2.00 1,680,000 4,065,545 5,745,5452006 2.25 1,715,000 4,031,945 5,746,9452007 2.60 1,755,000 3,993,358 5,748,3582008 3.65 1,800,000 3,947,728 5,747,7282009 3.00 1,865,000 3,880,328 5,745,3282010 3.25 1,925,000 3,824,378 5,749,3782011 3.25 1,985,000 3,761,815 5,746,8152012 3.40 2,050,000 3,695,318 5,745,3182013 3.65 2,120,000 3,625,618 5,745,6182014 5.25 2,200,000 3,548,238 5,748,2382015 5.25 2,315,000 3,432,738 5,747,7382016 5.25 2,435,000 3,311,200 5,746,2002017 5.25 2,565,000 3,183,363 5,748,3632018 5.25 2,700,000 3,048,700 5,748,7002019 5.00 2,840,000 2,906,950 5,746,9502020 5.00 2,985,000 2,764,950 5,749,9502021 5.00 3,130,000 2,615,700 5,745,7002022 4.81 3,290,000 2,459,196 5,749,196

SUBTOTAL $41,355,000 $66,162,609 $107,517,609

Term Bonds: ($48,375,000)2023 4.75 $3,450,000 $2,297,813 $5,747,8132024 4.75 3,615,000 2,133,938 5,748,9382025 4.75 3,785,000 1,962,225 5,747,2252026 4.75 3,965,000 1,782,438 5,747,4382027 4.75 4,155,000 1,594,100 5,749,1002028 4.75 4,350,000 1,396,738 5,746,7382029 4.75 4,555,000 1,190,113 5,745,1132030 4.75 4,775,000 973,750 5,748,7502031 4.75 5,000,000 746,938 5,746,9382032 4.75 5,240,000 509,438 5,749,4382033 4.75 5,485,000 260,538 5,745,538

SUBTOTAL 48,375,000 14,848,026 63,223,026TOTAL $89,730,000 $81,010,634 $170,740,634

119

120


TOURIST DEVELOPMENT REVENUE REFUNDING BONDS, SERIES 2002 Dated: October 1, 2002

(Unaudited) PURPOSE: The 2002 Bonds were issued to: 1. Refund all of the County’s Tourist

Development Revenue Bonds, Series 1992.

2. Refund the County’s outstanding promissory note payable to the Florida Local Government Finance Commission.

3. To finance the costs of acquiring, constructing and equipping certain capital improvement projects.

4. Pay the costs of issuance of the 2002 Bonds.

SECURITY: The Bonds are payable solely from the Tourist Development Tax levied and collected by the County, and the income and earnings from investments in any fund or account created and held under the resolution. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch’s – AAA Insurer – MBIA

FORM: The Bonds are issued in fully registered form, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds became payable October 1, 2003 and semiannually thereafter on April 1 and October 1. ISSUED AS: $16,885,000 Serial Bonds, due 10/01/2019 REDEMPTION PROVISIONS: The 2002 Bonds maturing October 1, 2013 and thereafter are subject to redemption prior to their stated dates of maturity at the option of the County, in whole, on any date, or in part, in such order of maturity as the County may elect on or after October 1, 2012 at the redemption price plus accrued interest to the redemption date. Redemption Period Redemption (dates inclusive) Price Oct. 1, 2012 and thereafter 100%


TOURIST DEVELOPMENT REVENUE REFUNDING BONDS, SERIES 2002Dated: October 1, 2002

(Unaudited)

PURPOSE:The 2002 Bonds were issued to:1. Refund all of the County’s Tourist

Development Revenue Bonds, Series1992.

2. Refund the County's outstandingpromissory note payable to the FloridaLocal Government FinanceCommission.

3. To finance the costs of acquiring,constructing and equipping certaincapital improvement projects.

4. Pay the costs of issuance of the 2002Bonds.

SECURITY:The Bonds are payable solely from the TouristDevelopment Tax levied and collected by theCounty, and the income and earnings frominvestments in any fund or account createdand held under the resolution.

AGENTS:Registrar— The Bank of New York, CorporateTrust Department, 10161 Centurion Parkway,Jacksonville, FL or The Bank of New York,Trust Company of Florida, NA, Church StreetStation, PO Box 11214, New York, NY 10286-1214

Paying Agent — The Bank of New York,Corporate Trust Department, 10161 CenturionParkway, Jacksonville, FL or The Bank of NewYork, Trust Company of Florida, NA, ChurchStreet Station, PO Box 11214, New York, NY10286-1214

Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s and Fitch's — AAAInsurer — MBIA

120

FORM:The Bonds are issued in fully registered form,in denominations of $5,000 or any integralmultiple thereof. Interest on the 2002 Bondsbecame payable October 1, 2003 andsemiannually thereafter on April 1 and October1.

ISSUED AS:$16,885,000 Serial Bonds, due 10/01/2019

REDEMPTION PROVISIONS:The 2002 Bonds maturing October 1, 2013and thereafter are subject to redemption priorto their stated dates of maturity at the option ofthe County, in whole, on any date, or in part, insuch order of maturity as the County may electon or after October 1, 2012 at the redemptionprice plus accrued interest to the redemptiondate.

Redemption Period(dates inclusive)Oct. 1,2012 and thereafter

RedemptionPrice100%

121

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/03)

(Unaudited)


October Rate Principal Interest Debt Service

Serial Bonds: 2004 2.00 $840,000 $586,750 $1,426,7502005 2.00 860,000 569,950 1,429,9502006 2.10 875,000 552,750 1,427,7502007 2.40 890,000 534,375 1,424,3752008 2.70 915,000 513,015 1,428,0152009 3.00 935,000 488,310 1,423,3102010 3.10 970,000 460,260 1,430,2602011 3.20 995,000 430,190 1,425,1902012 3.30 1,025,000 398,350 1,423,3502013 3.50 1,065,000 364,525 1,429,5252014 3.65 1,100,000 327,250 1,427,2502015 5.00 1,145,000 287,100 1,432,1002016 4.00 1,195,000 229,850 1,424,8502017 4.00 1,245,000 182,050 1,427,0502018 5.00 1,290,000 132,250 1,422,2502019 5.00 1,355,000 67,750 1,422,750

TOTAL $16,700,000 $6,124,725 $22,824,725

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002(Continued)


(Unaudited)

Bond Year %Ending Interest Total


Serial Bonds:2004 2.00 $840,000 $586,75C $1,426,7502005 2.00 860,000 569,95C 1,429,9502006 2.10 875,000 552,75C 1,427,7502007 2.40 890,000 534,375 1,424,3752008 2.70 915,000 513,015 1,428,0152009 3.00 935,000 488,31C 1,423,3102010 3.10 970,000 460,26C 1,430,2602011 3.20 995,000 430,19C 1,425,1902012 3.30 1,025,000 398,35C 1,423,3502013 3.50 1,065,000 364,525 1,429,5252014 3.65 1,100,000 327,25C 1,427,2502015 5.00 1,145,000 287,10C 1,432,1002016 4.00 1,195,000 229,85C 1,424,8502017 4.00 1,245,000 182,05C 1,427,0502018 5.00 1,290,000 132,25C 1,422,2502019 5.00 1,355,000 67,75C 1,422,750

TOTAL $16,700,000 $6,124,725 $22,824,725

121

122


CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002 Dated: November 15, 2002

(Unaudited) PURPOSE: The bonds are being issued to finance the costs of acquiring, constructing and equipping certain capital improvements on Santa Rosa Island and to pay a portion of the costs of issuance of the 2002 bonds. SECURITY: The Bonds are payable solely from and secured by a lien upon and pledge of the Lease Revenues and the Net Toll Revenues. AGENTS: Registrar – JP Morgan, 10151 Deerwood Park Blvd., Bldg. 200, Ste. 250, Jacksonville, FL 32256, (904) 996-3041 Paying Agent – JP Morgan, 10151 Deerwood Park Blvd., Bldg. 200, Ste. 250, Jacksonville, FL 32256, (904) 996-3041 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Garden Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch – AAA Insurer – MBIA FORM: The 2002 Bonds are issued as fully registered bonds, without coupons, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds began payment on October 1, 2003, and semiannual thereafter on April 1 and October 1 of each year.

ISSUED AS: $4,885,000 Serial Bonds $17,420,000 Term Bonds due 10/01/2032 REDEMPTION PROVISIONS: 2002 Bonds maturing prior to October 1, 2013, are not subject to redemption prior to their respective stated dates of maturity. Optional Redemption 2002 Bonds maturing on October 1, 2013, and thereafter are subject to redemption in whole or in part on any interest payment date thereafter. Redemption Period Redemption (dates inclusive) Price 10/01/2012 through 09/30/2013 101% 10/01/2013 and thereafter 100% Sinking Fund Redemption The 2002 Bonds due October 1, 2032 are subject to mandatory redemption in part prior to maturity by lot through Amortization Installments by operation of the Bond Amortization Account, at redemption prices equal to 100% of the principal amount thereof plus interest accrued to the redemption date.


CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002Dated: November 15, 2002

(Unaudited)

PURPOSE:The bonds are being issued to finance thecosts of acquiring, constructing and equippingcertain capital improvements on Santa RosaIsland and to pay a portion of the costs ofissuance of the 2002 bonds.

SECURITY:The Bonds are payable solely from andsecured by a lien upon and pledge of theLease Revenues and the Net To|| Revenues.

AGENTS:Registrar — JP Morgan, 10151 DeenNoodPark Blvd., Bldg. 200, Ste. 250, Jacksonville,FL 32256, (904) 996-3041Paying Agent — JP Morgan, 10151 DeenNoodPark Blvd., Bldg. 200, Ste. 250, Jacksonville,FL 32256, (904) 996-3041Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Garden Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s and Fitch — AAAInsurer — MBIA

FORM:The 2002 Bonds are issued as fully registeredbonds, without coupons, in denominations of$5,000 or any integral multiple thereof.Interest on the 2002 Bonds began payment onOctober 1, 2003, and semiannual thereafteron April 1 and October 1 of each year.

122

ISSUED AS:$4,885,000 Serial Bonds$17,420,000 Term Bonds due 10/01/2032

REDEMPTION PROVISIONS:2002 Bonds maturing prior to October 1, 2013,are not subject to redemption prior to theirrespective stated dates of maturity.

Optional Redemption2002 Bonds maturing on October 1, 2013, andthereafter are subject to redemption in wholeor in part on any interest payment datethereafter.

RedemptionPrice101%100%

Redemption Period(dates inclusive)10/01/2012 through 09/30/201310/01/2013 and thereafter

Sinking Fund RedemptionThe 2002 Bonds due October 1, 2032 aresubject to mandatory redemption in part priorto maturity by lot through Amortizationlnstallments by operation of the BondAmortization Account, at redemption pricesequal to 100% of the principal amount thereofplus interest accrued to the redemption date.

123

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/03) (Unaudited)


Serial Bonds: ($4,885,000)

2004 2.75 415,000 1,031,698 1,446,698 2005 2.75 425,000 1,020,285 1,445,285 2006 2.75 440,000 1,008,598 1,448,598 2007 3.13 450,000 996,498 1,446,498 2008 3.00 465,000 982,248 1,447,248 2009 3.20 480,000 968,298 1,448,298 2010 3.40 495,000 952,938 1,447,938 2011 3.60 510,000 936,108 1,446,108 2012 3.85 530,000 917,748 1,447,748 2013 0 0 0 2014 0 0 0 2015 0 0 0 2016 0 0 0 2017 4.43 675,000 772,137 1,447,137

SUBTOTAL $4,885,000 $9,586,552 $14,471,552 Term Bonds: ($17,420,000)

2014 5.25 $1,130,000 $1,765,300 $2,895,300 2016 5.25 1,250,000 1,643,500 2,893,500 2022 4.75 3,870,000 3,361,313 7,231,313 2027 5.00 4,910,000 2,325,500 7,235,500 2032 5.00 6,260,000 969,000 7,229, 000

SUBTOTAL 17,420,000 10,064,613 27,484,613 TOTAL $22,305,000 $19,651,165 $41,956,165

October

Serial Bonds:20042005200620072008200920102011201220132014201520162017

SUBTOTAL

Term Bonds:20142016202220272032

SUBTOTALTOTAL

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002(Continued)

Rate

($4,885,000)2.752.752.753.133.003.203.403.603.85

4.43

($17,420,000)5.255.254.755.005.00

Principal

415,000425,000440,000450,000465,000480,000495,000510,000530,000

0000

675,000


(Unaudited)

Interest

1,031,6981,020,2851,008,598

996,498982,248968,298952,938936,108917,748

0000

772,137

Debt Service

1,446,6981,445,2851,448,5981,446,4981,447,2481,448,2981,447,9381,446,1081,447,748

0000

1,447,137$4,885,000

$1,130,0001,250,0003,870,0004,910,0006,260,000

$9,586,552

$1,765,3001,643,5003,361,3132,325,500

969,000

$14,471,552

$2,895,3002,893,5007,231,3137,235,5007,229, 000

17,420,000 10,064,613 27,484,613$22,305,000

123

$19,651,165 $41,956,165

OTHER COUNTY DEBT

(Unaudited)

OTHERCOUNTYDEBT

(Unaudfled)

124

OTHER COUNTY DEBT

(Unaudited) Escambia County had available a line of credit with SunTrust Bank which permitted the borrowing (through December 31, 1997) of up to $9,600,000 to finance certain capital projects. Amounts borrowed require monthly interest payments at the rate of 68% of LIBOR plus .20% per annum, to be adjusted quarterly. Annual principal payments are required through 2006. The note is collateralized by the County’s electric franchise fee. The outstanding balance at September 30, 2003 is $1,184,362. Through issuance of its Capital Improvement Revenue Bond, Series 1997, the County was entitled to borrow up to $10,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capital improvement projects. Pledged revenues toward payment of the loan are electric franchise fees. Draws under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. Annual principal payments began in October 2001. As of September 30, 2003, the note balance was $9,445,000. The County also issued its Capital Improvement Revenue Bond, Series 1998, which permits borrowing up to $20,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loan are the infrastructure sales tax revenues. Draws under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. As of September 30, 2003, the note balance was $10,782,000. On October 1, 1999, Escambia County issued Governmental Unit Notes, Series 1999B and Series 1999C for $14,000,000 and $16,000,000, respectively, with the City of Gulf Breeze, Florida Local Government Loan Program, Floating Rate Demand Revenue Bonds, Series 1985B and Series 1985C. Collateral for these loans are pledged infrastructure sales tax revenues from June 1,

1999 through May 1, 2007. Annual principal payments on the 1999B Series began in December 2001. As of September 30, 2003, the balance of both notes is $21,520,000. On July 18, 1996, Escambia County entered into a loan agreement with the State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF). The TFRTF was created by the Florida Legislature in 1986 to encourage the development and enhancement of the financial feasibility of revenue-producing road projects undertaken by local governmental entities. These interest-free advances are to be repaid either from the proceeds from the project’s anticipated bond issue or by installment payments over a five year period beginning in the seventh year from the date of the advance. Although these advances are interest-free, the interest earnings attributable to temporary investment of the advances by the County is required to be repaid to the TFRTF. These advances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of I-110). The balance outstanding at September 30, 2003 is $469,166.

OTHER COUNTY DEBT(Unaudited)

Escambia County had available a line of creditwith SunTrust Bank which permitted theborrowing (through December 31, 1997) of upto $9,600,000 to finance certain capitalprojects. Amounts borrowed require monthlyinterest payments at the rate of 68% of LIBORplus 20% per annum, to be adjustedquarterly. Annual principal payments arerequired through 2006. The note iscollateralized by the County’s electricfranchise fee. The outstanding balance atSeptember 30, 2003 is $1,184,362.

Through issuance of its Capital ImprovementRevenue Bond, Series 1997, the County wasentitled to borrow up to $10,000,000 from theGulf Breeze, Florida Capital Funding Programto fund the acquisition and construction ofcertain capital improvement projects. Pledgedrevenues toward payment of the loan areelectric franchise fees. Draws under the loanrequire monthly interest payments at variablerates equal to the PSA Municipal Market, plusa maximum 34 basis points. Annual principalpayments began in October 2001. As ofSeptember 30, 2003, the note balance was$9,445,000.

The County also issued its CapitalImprovement Revenue Bond, Series 1998,which permits borrowing up to $20,000,000from the Gulf Breeze, Florida Capital FundingProgram to fund additional capital projects.Pledged revenues towards payment of theloan are the infrastructure sales tax revenues.Draws under the loan require monthly interestpayments at variable rates equal to the PSAMunicipal Market, plus a maximum 34 basispoints. As of September 30, 2003, the notebalance was $10,782,000.

On October 1, 1999, Escambia County issuedGovernmental Unit Notes, Series 19998 andSeries 1999C for $14,000,000 and$16,000,000, respectively, with the City of GulfBreeze, Florida Local Government LoanProgram, Floating Rate Demand RevenueBonds, Series 1985B and Series 1985C.Collateral for these loans are pledgedinfrastructure sales tax revenues from June 1,

124

1999 through May 1, 2007. Annual principalpayments on the 1999B Series began inDecember 2001. As of September 30, 2003,the balance of both notes is $21,520,000.

On July 18, 1996, Escambia County enteredinto a loan agreement with the State ofFlorida’s Toll Facilities @volving Trust Fund(TFRTF). The TFRTF was created by theFlorida Legislature in 1986 to encourage thedevelopment and enhancement of thefinancial feasibility of revenue-producing roadprojects undertaken by local governmentalentities. These interest-free advances are tobe repaid either from the proceeds from theproject’s anticipated bond issue or byinstallment payments over a five year periodbeginning in the seventh year from the date ofthe advance. Although these advances areinterest-free, the interest earnings attributableto temporary investment of the advances bythe County is required to be repaid to theTFRTF. These advances were used toconduct feasibility studies on the proposedEscambia Expressway (extension of M10).The balance outstanding at September 30,2003 is $469,166.

125

LONG-TERM NOTE

SUNTRUST BANK LINE OF CREDIT

(Unaudited) Original Amount: $9,600,000 Dated: December 19, 1995 Purpose: Finance certain capital projects through December 31, 1997 Collateral: Escambia County Electric Franchise Fees

Interest Rate: 68% LIBOR + 0.20% Assumed Rate: 2.81% Maturity Date: December 31, 2005 Term: Monthly Interest Payments Annual Principal Payments

SCHEDULE OF PAYMENTS

(As of 09/30/03)

Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2004 $394,787 $8,049 $402,8369/30/2005 394,787 4,464 399,2519/30/2006 394,788 899 395,687

TOTALS $1,184,362 $13,412 $1,197,774

LONG-TERM NOTE

SUNTRUST BANKLINE OF CREDIT

(Unaudited)

Original Amount: $9,600,000 Interest Rate: 68% LIBOR + 0.20%

Dated: December 19, 1995 Assumed Rate: 2.81%

Purpose: Finance certain capital projects Maturity Date: December 31, 2005through December 31, 1997

Term: Monthly Interest PaymentsCollateral: Escambia County Electric Annual Principal PaymentsFranchise Fees

SCHEDULE OF PAYMENTS(As of 09/30/03)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2004 $394,787 $8,049 $402,8369/30/2005 394,787 4,464 399,2519/30/2006 394,788 899 395,687

TOTALS $1,184,362 $13,412 $1,197,774

125

126

LONG-TERM NOTE

CITY OF GULF BREEZE CAPITAL IMPROVEMENT BOND, SERIES 1997

(LOAN #1) (Unaudited)

Line of Credit: $10,000,000 Dated: May 20, 1997 Purpose: Fund acquisition and construction of capital improvement projects. Collateral: Escambia County Electric Franchise Fees

Term: Annual principal payments to begin October 1, 2001 Interest Rate: PSA Municipal Market Rate (Limit 34 Basis Points) Assumed Rate: 2.47% Maturity Date: October 1, 2017

SCHEDULE OF PAYMENTS

(As of 09/30/03)

Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2004 $315,000 $114,766 $429,7669/30/2005 345,000 110,460 455,4609/30/2006 380,000 105,734 485,7349/30/2007 415,000 100,569 515,5699/30/2008 450,000 94,965 544,9659/30/2009 490,000 88,665 578,6659/30/2010 535,000 82,206 617,2069/30/2011 585,000 74,925 659,9259/30/2012 640,000 66,960 706,9609/30/2013 700,000 58,249 758,2499/30/2014 765,000 48,728 813,7289/30/2015 835,000 38,335 873,3359/30/2016 910,000 27,007 937,0079/30/2017 995,000 14,624 1,009,6249/30/2018 1,085,000 1,118 1,086,118

TOTALS $9,445,000 $1,027,311 $10,472,311

LONG-TERM NOTECITY OF GULF BREEZE

CAPITAL IMPROVEMENT BOND, SERIES 1997(LOAN #1)(Unaudited)

Line of Credit: $10,000,000 Term: Annual principal payments to beginOctober 1, 2001

Dated: May 20, 1997Interest Rate: PSA Municipal Market Rate

Purpose: Fund acquisition and construction (Limit 34 Basis Points)of capital improvement projects.

Assumed Rate: 2.47%Collateral: Escambia County ElectricFranchise Fees Maturity Date: October 1, 2017


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2004 $315,006 $114,766 $429,7669/30/2005 345,006 110,460 455,4609/30/2006 380,006 105,734 485,7349/30/2007 415,006 100,569 515,5699/30/2008 450,006 94,965 544,9659/30/2009 490,006 88,665 578,6659/30/2010 535,006 82,206 617,2069/30/2011 585,006 74,925 659,9259/30/2012 640,006 66,96C 706,9609/30/2013 700,006 58,249 758,2499/30/2014 765,006 48,728 813,7289/30/2015 835,006 38,335 873,3359/30/2016 910,006 27,007 937,0079/30/2017 995,006 14,624 1,009,6249/30/2018 1,085,006 1,118 1,086,118

TOTALS $9,445,006 $1,027,311 $10,472,311

126

127

LONG-TERM NOTE CITY OF GULF BREEZE

CAPITAL IMPROVEMENT BOND, SERIES 1998 (LOAN #2) (Unaudited)

Line of Credit: $20,000,000 Dated: May 26, 1997 Purpose: Fund acquisition and construction of capital improvement projects Collateral: Infrastructure Sales Tax Revenue

Term: Annual principal payments to begin February 1, 2000 Interest Rate: PSA Municipal Market Rate (Limit 34 Basis Points) Assumed Rate: 2.47% Maturity Date: February 1, 2007

SCHEDULE OF PAYMENTS (As of 09/30/03)

Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2004 $2,539,000 $116,666 $2,655,6669/30/2005 2,641,000 84,086 2,725,0869/30/2006 2,746,000 50,222 2,796,2229/30/2007 2,856,000 15,005 2,871,005

TOTALS $10,782,000 $265,979 $11,047,979


CAPITAL IMPROVEMENT BOND, SERIES 1998(LOAN #2)(Unaudited)

Line of Credit: $20,000,000 Term: Annual principal payments to beginFebruary 1, 2000

Dated: May 26, 1997Interest Rate: PSA Municipal Market Rate

Purpose: Fund acquisition and construction (Limit 34 Basis Points)of capital improvement projects

Assumed Rate: 2.47%Collateral: Infrastructure Sales Tax Revenue

Maturity Date: February 1, 2007


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2004 $2,539,00C $116,666 $2,655,6669/30/2005 2,641 ,OOC 84,086 2,725,0869/30/2006 2,746,00C 50,222 2,796,2229/30/2007 2,856,00C 15,005 2,871,005

TOTALS $10,782,006 $265,979 $11,047,979

127

128


CAPITAL IMPROVEMENT BOND, SERIES 1999B (LOAN #3) (Unaudited)

Line of Credit: $14,000,000 Dated: October 1, 1999 Purpose: Acquisition, construction, equipping of capital projects for infrastructure

Collateral: Pledged Infrastructure Sales Tax Revenues from 06/01/99 to 12/01/04 Interest Rate: 4.5462% Maturity Date: December 1, 2004


Fiscal Year Principal Interest Total

Ended Payments Payments Debt Service 9/30/2004 $4,510,000 $144,670 $4,654,6709/30/2005 1,010,000 22,725 1,032,725

TOTALS $5,520,000 $167,395 $5,687,395


CAPITAL IMPROVEMENT BOND, SERIES 1999B(LOAN #3)(Unaudited)

Line of Credit: $14,000,000 Collateral: Pledged Infrastructure Sales TaxRevenues from 06/01/99 to 12/01/04

Dated: October 1, 1999Interest Rate: 4.5462%

Purpose: Acquisition, construction, equippingof capital projects for infrastructure Maturity Date: December 1, 2004


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2004 $4,510,00C $144,67C $4,654,67C9/30/2005 1,010,000 22,725 1,032,725

TOTALS $5,520,00C $167,395 $5,687,395

128

129


CAPITAL IMPROVEMENT BOND, SERIES 1999C (LOAN #4) (Unaudited)

Line of Credit: $16,000,000 Dated: October 1, 1999 Purpose: Acquisition, construction, equipping of capital projects for infrastructure

Collateral: Pledged Infrastructure Sales Tax Revenues from 06/01/99 to 05/01/07 Interest Rate: 4.5462% Maturity Date: May 1, 2007


Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2004 $0 $741,930 $741,9309/30/2005 3,695,000 658,793 4,353,7939/30/2006 4,920,000 462,495 5,382,4959/30/2007 7,385,000 219,468 7,604,468

TOTALS $16,000,000 $2,082,686 $18,082,686


CAPITAL IMPROVEMENT BOND, SERIES 1999C(LOAN #4)(Unaudited)

Line of Credit: $16,000,000 Collateral: Pledged Infrastructure Sales TaxRevenues from 06/01/99 to 05/01/07

Dated: October 1, 1999Interest Rate: 4.5462%

Purpose: Acquisition, construction, equippingof capital projects for infrastructure Maturity Date: May 1, 2007


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2004 $0 $741,930 $741 ,93C9/30/2005 3,695,000 658,793 4,353,7939/30/2006 4,920,000 462,495 5,382,4959/30/2007 7,385,000 219,468 7,604,468

TOTALS $16,000,000 $2,082,686 $18,082,686

129

130

LONG-TERM NOTE STATE OF FLORIDA’S TOLL FACILITIES

REVOLVING TRUST FUND (TFRTF) (Unaudited)

Loan Amount: $500,000 Dated: July 18, 1996 Purpose: Conduct feasibility studies on the proposed Escambia Expressway (extension of I-110)

Collateral: Unsecured Interest: Payable to TFRTF Maturity Date: January 16, 2009 Term: Installment payments begin seven years after final advance


Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2004 $83,333 $635 $83,9689/30/2005 83,334 635 83,9699/30/2006 83,333 635 83,9689/30/2007 83,333 635 83,9689/30/2008 83,334 635 83,9699/30/2009 52,500 252 52,752

TOTALS $469,167 $3,427 $472,594

LONG-TERM NOTESTATE OF FLORIDA’S TOLL FACILITIES

REVOLVING TRUST FUND (TFRTF)(Unaudited)

Loan Amount: $500,000 Collateral: Unsecured

Dated: July 18, 1996 Interest: Payable to TFRTF

Purpose: Conduct feasibility studies on the Maturity Date: January 16, 2009proposed Escambia Expressway (extension ofI-110)

Fiscal YearEnded

Term: Installment payments begin sevenyears after final advance


Principal Interest TotalPayments Payments Debt Service

9/30/20049/30/20059/30/20069/30/20079/30/20089/30/2009

$83,333 $635 $83,96883,334 635 83,96983,332 635 83,96883,332 635 83,96883,334 635 83,96952,50C 252 52,752

TOTALS $469,167 $3,427 $472,594

130

REFUNDED BONDS

(Unaudited)

REFUNDED BONDS

(Unaudited)

131

ESCAMBIA COUNTY OUTSTANDING REFUNDED DEBT

As of September 30, 2003

(Unaudited)

Some bond issues have been refunded by other bond issues. This schedule traces each bond issue from its origination to the bond issue currently outstanding. Details of each outstanding refunded bond issue are provided in this section.

Capital Improvement Refunding & Revenue Series 1977-1 - $10,210,000 Series 1977-2 - $10,580,000

Tourist Development Revenue Bonds Series 1992 $6,915,000

Solid Waste Disposal System Revenue Series 1978 - $3,500,000

Capital Improvement Refunding & Revenue Series 1980-1 - $30,595,000

Capital Improvement Refunding & Revenue Series 1980-2 – Redeemed 01/01/00

Special Obligation Bonds (Funded from Escrow Deposit) Series 1980A - $42,360,000

Capital Improvement Refunding & Revenue Series 1983 - $47,615,000

Capital Improvement Revenue Refunding Series 1985 – Redeemed 01/01/89

Public Improvement Revenue Refunding Series 1988A - $20,565,000

Public Improvement Revenue Refunding Series 1988B – Redeemed 01/01/00

Sales Tax Revenue Series 1989A - $20,675,000

Sales Tax Revenue Refunding Series 1993 - $50,355,000

Tourist Development Revenue Bonds Series 2002 $16,885,000

Sales Tax Revenue Refunding Series 2002 - $89,730,000,000

Road Improvement Revenue Bonds Series 1993A $7,870,000

Capital Improvement Bonds Series 2002 $22,305,000

ESCAMBIA COUNTYOUTSTANDING REFUNDED DEBT

As of September 30, 2003

(Unaudited)

Some bond issues have been refunded by other bond issues. This schedule traces each bond issuefrom its origination to the bond issue currently outstanding. Details of each outstanding refundedbond issue are provided in this section.

Sales Tax RevenueRefunding Series 2002- $89,730,000,000

Sales TaX RevenuSeries 1989A-$20,675,000

Sales Tax RevenueRefunding Series 1993- $50,355,000

Capital Improvement BondsSeries 2002$22,305,000

Public ImprovementRevenue RefundingSeries 1988A-$20,565,000

Public ImprovementRevenue RefundingSeries 19888 —Redeemed 01/01/00

Road Improvement RevenueBonds Series 1993A$7,870,000

Capital ImprovementRevenue RefundingSeries 1985 — Redeemed01/01/89

Capital ImprovementRefunding & RevenueSeries 1983- $47,615,000

Tourist Development RevenueBonds Series 2002$16,885,000

Special ObligationBonds (Funded fromEscrow Deposit) Series1980A- $42,360,000

Tourist Development RevenueBonds Series 1992$6,915,000

Capital ImprovementRefunding & RevenueSeries 1980-2 —Redeemed 01/01/00

Capital ImprovementRefunding & RevenueSeries 1980-1 -$30,595,000

Solid Waste Disposal SystemRevenue Series 1978 -$3,500,000

Capital Improvement Refunding &RevenueSeries 1977-1 - $10,210,000Series 1977-2 - $10,580,000

131

132


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDS SERIES 1977-1 & 1977-2

Dated: July 1, 1977

(Unaudited)

FORM: The Bonds were issued in coupon form in the denomination of $5,000 each; registered as to principal only. REFUNDED BY: Escambia County, Florida, Captial Improvement Refunding and Revenue Bonds, Series 1980-1. AGENTS: Registrar – Escambia County, Florida Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL 32256 or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 112114, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Slade, McCarty & Kelly, PA, Jacksonville, FL INTIAL RATINGS: Standard & Poor’s – BBB+ (Series 1977-2) Moody’s – A (Series 1977-2) Insurer – MBIA (Series 1977-1) CALL PROVISIONS: Escrowed to maturity

SUMMARY OF REMAINING DEBT SERVICE (As of 09/30/03)

%

July 1, Interest Total Maturities Rate Principal Interest Debt Service

2004 6.050 $1,350,000 $359,835 $1,709,835 2005 6.100 1,430,000 278,160 1,708,160 2006 6.100 1,520,000 190,390 1,710,390 2007 6.100 1,610,000 98,210 1,708,210

TOTALS $5,910,000 $926,595 $6,836,595


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDSSERIES 1977-1 & 1977-2

Dated: July 1, 1977(Unaudited)

FORM:The Bonds were issued in coupon form inthe denomination of $5,000 each; registeredas to principal only.

REFUNDED BY:Escambia County, Florida, CaptialImprovement Refunding and RevenueBonds, Series 1980-1.

AGENTS:Registrar— Escambia County, FloridaPaying Agent — SunTrust Bank, Trust and

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL 32256or The Bank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box112114, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Slade, McCarty & Kelly, PA,Jacksonville, FL

INTIAL RATINGS:Standard & Poor’s — BBB+ (Series 1977-2)Moody’s — A (Series 1977-2)Insurer — MBIA (Series 1977-1)

Investment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

CALL PROVISIONS:Escrowed to maturity

SUMMARY OF REMAINING DEBT SERVICE(As of 09/30/03)

%July 1, Interest Total

Maturities Rate Principal Interest Debt Service

2004 6.0502005 6.1002006 6.1002007 6.100

TOTALS

$1,350,000 $359,8351,430,000 278,1601,520,000 190,3901,610,000 98,210

$5,910,000 $926,595

$1,709,8351,708,1601,710,3901,708,210

$6,836,595

132

133


SOLID WASTE DISPOSAL SYSTEM REVENUE BONDS SERIES 1978

Dated: July 1, 1978

(Unaudited)

FORM: The Bonds were issued as coupon bonds, registered as to principal only, in the denomination of $5,000 each. REFUNDED BY: Escambia County, Florida, Capital Improvement Refunding and Revenue Bonds, Series 1980. AGENTS: Registrar – Escambia County, Florida Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Slade, McCarthy & Kelly, PA, Jacksonville, FL INITIAL RATINGS: Moody’s – A Insurer – None CALL PROVISIONS: Escrowed to maturity.


% July 1, Interest Total

Maturities Rate Principal Interest Debt Service

2004 6.850 $245,000 $99,283 $344,283 2005 6.875 265,000 82,500 347,500 2006 6.875 285,000 64,281 349,281 2007 6.875 310,000 44,688 354,688 2008 6.875 340,000 23,375 363,375

TOTALS $1,445,000 $314,127 $1,759,127


SOLID WASTE DISPOSAL SYSTEM REVENUE BONDSSERIES 1978

Dated: July 1, 1978

(Unaudited)

FORM:The Bonds were issued as coupon bonds,registered as to principal only, in thedenomination of $5,000 each.

REFUNDED BY:Escambia County, Florida, CapitalImprovement Refunding and RevenueBonds, Series 1980.

AGENTS:Registrar— Escambia County, FloridaPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 BarkleyStreet, 7—E, New York, NY 10286, (800)254-2826

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Slade, McCarthy & Kelly, PA,Jacksonville, FL

INITIAL RATINGS:Moody’s — AInsurer — None

CALL PROVISIONS:Escrowed to maturity.


%July 1, Interest

Maturities Rate PrincipalTotal

Interest Debt Service

20042005200620072008

TOTALS

6.8506.8756.8756.8756.875

$245,000265,000285,000310,000340,000

$99,28382,50064,28144,68823,375

$344,283347,500349,281354,688363,375

$1,445,000 $314,127 $1,759,127

133

134


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDS SERIES 1980-1

Dated: December 1, 1980

(Unaudited) FORM: The Series 1980-1 Bonds were issued as coupon bonds, registered as to principal only, in the denomination of $5,000. REFUNDED BY: Escambia County, Florida, Capital Improvement Refunding Revenue Bonds, Series 1983. AGENTS: Registrar – AmSouth Bank, Birmingham, AL Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Kelly & Livermore, PA, Jacksonville, FL Transfer Agent – Bank of New York, 101 Barclay Street, Lobby Level, Corporate Trust Service Window, New York, NY 10286, Attention: Fiscal Agency Department INITIAL RATINGS: Standard & Poor’s – AAA Insurer – MBIA CALL PROVISIONS: Escrowed to maturity.




2004 11.000 $1,710,000 $1,513,625 $3,223,625 2005 11.000 1,900,000 1,325,525 3,225,525 2006 11.000 2,105,000 1,116,525 3,221,525 2007 11.000 2,335,000 884,975 3,219,975 2008 7.500 2,595,000 628,125 3,223,125 2009 7.500 2,785,000 433,500 3,218,500 2010 7.500 2,995,000 224,625 3,219,625

TOTALS $16,425,000 $6,126,900 $22,551,900


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDSSERIES 1980-1

Dated: December 1, 1980(Unaudited)

FORM:The Series 1980-1 Bonds were issued ascoupon bonds, registered as to principalonly, in the denomination of $5,000.

REFUNDED BY:Escambia County, Florida, CapitalImprovement Refunding Revenue Bonds,Series1983.

AGENTS:Registrar — AmSouth Bank, Birmingham,ALPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Kelly & Livermore, PA,Jacksonville, FLTransfer Agent — Bank of New York, 101Barclay Street, Lobby Level, Corporate TrustService Window, New York, NY 10286,Attention: Fiscal Agency Department

INITIAL RATINGS:Standard & Poor’s — AAAInsurer — MBIA




January 1 Rate

2004200520062007200820092010

11.00011.00011.00011.0007.5007.5007.500

Principal

$1,710,0001,900,0002,105,0002,335,0002,595,0002,785,0002,995,000

TotalInterest Debt Service

$1,513,6251,325,5251,1 16,525

884,975628,125433,500224,625

$3,223,6253,225,5253,221,5253,219,9753,223,1253,218,5003,219,625

TOTALS $16,425,000

134

$6,126,900 $22,551,900

135

$42,360,000 ESCAMBIA COUNTY, FLORIDA SPECIAL OBLIGATION BONDS

SERIES 1980A

Dated: December 1, 1980 (Unaudited)

FORM: The Special Bonds were issued as coupon bonds, registered as to principal only, or as to both principal and interest, in the denomination of $5,000. REFUNDED BY: The Special Bonds are payable solely from amounts available pursuant to the Escrow Deposit Agreement. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214, (800) 254-2826, Bond Relations Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley

Street, 7-E, New York, NY 10286, (800) 254-2826 Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Kelly & Livermore, PA, Jacksonville, FL INTITAL RATINGS: Standard & Poor’s – AAA Insurer – None CALL PROVISIONS: The Special Bonds are not subject to redemption prior to maturity, and additional Special Bonds may not be issued under the Special Bond Resolution.

SUMMARY OF REMAINING DEBT SERVICE

(As of 09/30/03)

% Interest Total

Date Rate Principal Interest Debt Service

01/2004 10.500 $325,000 $92,748 $417,748 07/2004 10.500 345,000 75,685 420,685 01/2005 10.500 265,000 57,573 322,573 07/2005 10.500 280,000 43,660 323,660 01/2006 10.500 185,000 28,960 213,960 07/2006 10.500 195,000 19,248 214,248 01/2007 10.600 80,000 9,010 89,010 07/2007 10.600 90,000 4,770 94,770

TOTALS $1,765,000 $331,654 $2,096,654

$42,360,000ESCAMBIA COUNTY, FLORIDASPECIAL OBLIGATION BONDS

SERIES 1980A


FORM:The Special Bonds were issued as couponbonds, registered as to principal only, or asto both principal and interest, in thedenomination of $5,000.

REFUNDED BY:The Special Bonds are payable solely fromamounts available pursuant to the EscrowDeposit Agreement.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214, (800)254-2826, Bond RelationsPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 Barkley

Street, 7-E, New York, NY254-2826Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Kelly & Livermore, PA,Jacksonville, FL

10286, (800)

INTITAL RATINGS:Standard & Poor’s — AAAInsurer — None

CALL PROVISIONS:The Special Bonds are not subject toredemption prior to maturity, and additionalSpecial Bonds may not be issued under theSpecial Bond Resolution.


%Interest

Date Rate Princ

01/200407/200401/200507/200501/200607/200601/200707/2007

10.50010.50010.50010.50010.50010.50010.60010.600

$

ipal

325,000345,000265,000280,000185,000195,00080,00090,000


$92,74875,68557,57343,66028,96019,248

9,0104,770

$417,748420,685322,573323,660213,960214,248

89,01094,770

TOTALS $1 , 765,000 $331,654 $2,096,654

135

136


CAPITAL IMPROVEMENT REFUNDING REVENUE BONDS SERIES 1983

Dated: September 22, 1983

(Unaudited)

FORM: The Series 1983 Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Capital Improvement Revenue and Refunding Bonds, Series 1985. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Livermore, Klein & Lott, PA, Jacksonville, FL INITIAL RATINGS: Standard & Poor’s – AAA Insurer – MBIA CALL PROVISIONS: Paid from Escrow Account at the following schedule: 1993 – 2009 called January 1, 1993 2010 – 2011 paid as scheduled


(As of 09/30/03)



2010 7.500 $4,455,000 $451,500 $4,906,500 2011 7.500 1,565,000 117,376 1,682,376

TOTALS $6,020,000 $568,876 $6,588,876


CAPITAL IMPROVEMENT REFUNDING REVENUE BONDSSERIES 1983

Dated: September 22, 1983(Unaudited)

FORM:The Series 1983 Bonds were issued as fullyregistered bonds, in the denomination of$5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, CapitalImprovement Revenue and RefundingBonds, Series 1985.

AGENTS:Registrar — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631Paying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Livermore, Klein & Lott,PA, Jacksonville, FL

INITIAL RATINGS:Standard & Poor’s — AAAInsurer — MBIA

CALL PROVISIONS:Paid from Escrow Account at the followingschedule:

1993 — 2009 called January 1, 19932010 — 2011 paid as scheduled



January 1 Rate

2010 7.5002011 7.500

Principal

$4,455,0001,565,000 117,376


$451,500 $4,906,5001,682,376

TOTALS $6,020,000 $568,876 $6,588,876

137

$20,675,000 ESCAMBIA COUNTY, FLORIDA SALES TAX REVENUE BONDS

SERIES 1989A

Dated: December 1, 1989 (Unaudited)

FORM: The Series 1989A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Sales Tax Revenue and Refunding Bonds, Series 2002. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s - Aaa Standard & Poor’s – AAA Insurer – FGIC CALL PROVISIONS: Escrowed to maturity. Bonds matured in full on January 1, 2003.

$20,675,000ESCAMBIA COUNTY, FLORIDASALES TAX REVENUE BONDS

SERIES 1989A


FORM:The Series 1989A Bonds were issued asfully registered bonds, in the denominationof $5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, SalesRevenue and Refunding Bonds,2002.

TaxSenes


137

Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street,Suite 500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s - AaaStandard & Poor’s — AAAInsurer — FGIC


Bonds matured in full on January 1, 2003.

138


TOURIST DEVELOPMENT REVENUE BONDS SERIES 1992

Dated: September 1 1992

(Unaudited)

FORM: The Series 1992 Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Tourist Development Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations,

Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826. Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Insurer – FGIC CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 – 2012 as scheduled


% Interest Total Rate Principal Interest Debt Service

12/01/04 6.000 $350,000 $235,070 $585,07012/01/05 6.000 370,000 215,820 585,82012/01/06 6.000 390,000 195,100 585,10012/01/07 6.000 415,000 172,870 587,87012/01/08 6.000 440,000 148,800 588,80012/01/09 6.000 465,000 122,400 587,40012/01/10 6.000 495,000 94,500 589,50012/01/11 6.000 525,000 64,800 589,80012/01/12 6.000 555,000 33,300 588,300

TOTALS $4,005,000 $1,282,660 $5,287,660


TOURIST DEVELOPMENT REVENUE BONDSSERIES 1992

Dated: September1 1992(Unaudited)

FORM:The Series 1992 Bonds were issued as fullyregistered bonds, in the denomination of$5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, TouristDevelopment Revenue Refunding Bonds,Series 2002.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286—1214Paying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,

Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826.Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street,Suite 500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — AaaStandard & Poor’s — AAAInsurer — FGIC


2004 — 2012 as scheduled


%Interest

RateTotal

Interest Debt Service12/01/0412/01/0512/01/0612/01/0712/01/0812/01/0912/01/1012/01/1112/01/12

TOTALS

6.0006.0006.0006.0006.0006.0006.0006.0006.000

Principal$350,000

370,000390,000415,000440,000465,000495,000525,000555,000

$235,070215,820195,100172,870148,800122,40094,50064,80033,300

$585,070585,820585,100587,870588,800587,400589,500589,800588,300

$4,005,000 $1 ,282,66C $5,287,660

138

139


ROAD IMPROVEMENT REVENUE BONDS SERIES 1993A

Dated: December 1, 1993

(Unaudited)

FORM: The Series 1993A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Capital Improvement Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – The Bank of New York, Corporate Trust Department 10161 Centurion Parkway, Jacksonville, FL or the Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations Corporate Trust Operations,

Fiscal Agencies Department, 101 Berkley Street, 7-E, New York, NY 10286, (800) 254-2826 Bond Counsel – Miller, Canfield, Paddock and Stone, PA, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Baa Standard & Poor’s – BBB Insurer – None CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 called January 1, 2004


Bond Year %

Ending Interest Total January 1 Rate Principal Interest Debt Service

2004 5.2500 $965,000 $50,663 $1,015,663

TOTALS $965,000 $50,663 $1,015,663


ROAD IMPROVEMENT REVENUE BONDSSERIES 1993A



REFUNDED BY:Escambia County, Florida, CapitalImprovement Revenue Refunding Bonds,Series 2002.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department 10161Centurion Parkway, Jacksonville, FL or theBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Paying Agent — The Bank of New York,Bond Relations Corporate Trust Operations,

Fiscal Agencies Department, 101 BerkleyStreet, 7—E, New York, NY 10286, (800)254-2826Bond Counsel — Miller, Canfield, Paddockand Stone, PA, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — BaaStandard & Poor’s — BBBInsurer — None


2004 called January 1, 2004



January 1 Rate

2004 5.2500TOTALS

Principal

$965,000 $50,663$965,000 $50,663


$1,015,663$1,015,663

140


SALES TAX REVENUE REFUNDING BONDS SERIES 1993

Dated: April 1, 1993

(Unaudited)

FORM: The Series 1989A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Sales Tax Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Bond Counsel – Miller, Canfield, Paddock and Stone, PA, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch’s – AAA Insurer – FGIC CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 – 2015 as scheduled


(As of 09/30/03)



2004 5.8000 $2,950,000 $2,761,945 $5,711,9452005 5.8000 3,105,000 2,605,595 5,710,5952006 5.8000 3,280,000 2,437,925 5,717,9252007 5.8000 3,460,000 2,257,525 5,717,5252008 5.8000 3,655,000 2,065,495 5,720,4952009 5.8000 3,860,000 1,860,815 5,720,8152010 5.8000 4,085,000 1,860,795 5,945,7952011 5.8000 4,325,000 1,407,950 5,732,9502012 5.8000 4,570,000 1,157,100 5,727,1002013 5.8000 4,835,000 892,040 5,727,0402014 5.8000 5,120,000 611,610 5,731,6102015 5.8000 5,425,000 314,650 5,739,650

TOTALS $48,670,000 $20,233,445 $68,903,445


SALES TAX REVENUE REFUNDING BONDSSERIES 1993

Dated: April 1, 1993(Unaudited)


REFUNDED BY:Escambia County, Florida, SalesRevenue Refunding Bonds, Series 2002.

Tax

Bond Counsel — Miller, Canfield, Paddockand Stone, PA, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — AaaStandard & Poor’s and Fitch's — AAAInsurer — FGIC



2004 — 2015 as scheduled


Bond YearEnding

January 1

%Interest

RateTotal

Principal Interest Debt Service

2004200520062007200820092010201 12012201320142015

TOTALS

5.80005.80005.80005.80005.80005.80005.80005.80005.80005.80005.80005.8000

$2,950,0003,105,0003,280,0003,460,0003,655,0003,860,0004,085,0004,325,0004,570,0004,835,0005,120,0005,425,000

$48,670,000

$2,761,9452,605,5952,437,9252,257,5252,065,4951,860,8151,860,7951,407,9501,157,100

892,040611,610314,650

$20,233,445

$5,711,9455,710,5955,717,9255,717,5255,720,4955,720,8155,945,7955,732,9505,727,1005,727,0405,731,6105,739,650

$68,903,445

140

ECONOMIC INDICATORS (Unaudited)

ECONOMIC INDICATORS

(Unaudited)

(Unaudited)

Year Escambia County Florida United States1994 $16,474 $21,758 $22,0561995 $16,899 $22,665 $23,0631996 $18,509 $23,833 $24,1691997 $18,639 $24,795 $25,2981998 $19,253 $25,922 $26,4821999 $21,638 $27,124 $27,3322000 $22,441 $26,884 $26,8852001 $24,487 $30,164 $30,4042002 $25,359 $31,322 $31,5292003 $26,230 $32,479 $32,653

Source: Pensacola Area Chamber of Commerce (Pensacola MSA Personal Income Projection)(http://www.pensacolachamber.com/)

PER CAPITA INCOME - COMPARISON

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

YEARS

DO

LL

AR

S

Escambia County Florida United States

141

PER CAPITA INCOME - COMPARISON

$35,000V

/$30,000 1‘/‘

,/—‘=§7

$25,000 I/' M_V

$20,000

DOLL

ARS

$15,000

$10,000

$5,000

$0 l | | | | | l l

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003YEARS

+Escambia County +F|orida — —United States

(Unaudited)

fl Escambia County Florida United States1994 $16,474 $21,758 $22,0561995 $16,899 $22,665 $23,0631996 $18,509 $23,833 $24,1691997 $18,639 $24,795 $25,2981998 $19,253 $25,922 $26,4821999 $21,638 $27,124 $27,3322000 $22,441 $26,884 $26,8852001 $24,487 $30,164 $30,4042002 $25,359 $31,322 $31,5292003 $26,230 $32,479 $32,653

Source: Pensacola Area Chamber of Commerce (Pensacola MSA Personal Income Projection)(http://www.pensacolachamber.com/)

141

(Unaudited)

Industry Employees % of TotalServices 49,800 29.60%Information, Financial Activities, and Professional Services 29,900 17.77%Government 29,100 17.29%Retail Trade 19,700 11.71%Agricultural and Fishing 13,366 7.94%Natural Resources, Mining, and Construction 10,900 6.48%Manufacturing 6,900 4.10%Wholesale Trade 5,300 3.15%Transportation, Warehousing, and Utilities 3,300 1.96%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation)(www.labormarketinfo.com)

EMPLOYMENT BY INDUSTRY IN ESCAMBIA COUNTY

30%

18%

17%

12%

8%

6%

4%3% 2%

Services

Information, Financial Activities, andProfessional Services

Government

Retail Trade

Agricultural and Fishing

Natural Resources, Mining, andConstruction

Manufacturing

Wholesale Trade

Transportation, Warehousing, andUtilities

142

EMPLOYMENT BY INDUSTRY INESCAMBIA COUNTY

3% 2%

8%

12%

UServices

llnformation, Financial Activities, andProfessional Services

UGovernment

URetaiI Trade

lAgriculturaI and Fishing

UNatural Resources, Mining, andConstruction

lManufacturing

UWholesale Trade

lTransportation, Warehousing, andUtilities

Source:

(Unaudited)

Industry Emgloyees % of TotalServicesInformation, Financial Activities, and Professional ServicesGovernmentRetail TradeAgricultural and FishingNatural Resources, Mining, and ConstructionManufacturingWholesale TradeTransportation, Warehousing, and Utilities

Labor Market Statistics (Florida Agency for Workforce Innovation)(www.Iabormarketinfocom)

142

49,800 29.60%29,900 17.77%29,100 17.29%19,700 11.71%13,366 7.94%10,900 6.48%6,900 4.10%5,300 3.15%3,300 1.96%

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 137,731,000 8,436,000 5.8%Florida 7,685,000 439,000 5.4%Escambia County 117,288 4,937 4.0%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept., 2003) www.labormarketinfo.com/laus/

UNEMPLOYMENT RATE

5.8%

5.4%

4.0%

United States Florida Escambia County

143

UNEMPLOYMENT RATE

4.0%

5.8%

5.4%

EIUnited States IFlorida ElEscambia County

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 137,731,000 8,436,000 5.8%Florida 7,685,000 439,000 5.4%Escambia County 117,288 4,937 4.0%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept, 2003)www.labormarketinfo.com/Iaus/

143

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

Year Index Level Rank (out of 67)1994 93.55 421995 95.11 331996 93.83 381997 94.86 341998 93.16 411999 93.84 362000 93.22 452001 93.57 482002 92.24 422003 96.34 unavailable

The Florida Price Level Index measures the difference from county to county in the cost of purchasinga specific market basket of goods and services at a particular point in time.

Source: Bureau of Labor Statistics--Table 6 Consumer Price Index (www.bls.gov)The 2002 Florida Price Level Index, Florida Department of Education (www.firn.edu/doe)

FLORIDA PRICE LEVEL INDEX

90.00

91.00

92.00

93.00

94.00

95.00

96.00

97.00

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Escambia County

144

97.00

96.00

95.00

94.00

93.00

92.00

91.00

90.00

FLORIDA PRICE LEVEL INDEX

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

+Escambia County

Exam1994199519961997199819992000200120022003

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

Index Level Rank (out of 67)93.55 4295.11 3393.83 3894.86 3493.16 4193.84 3693.22 4593.57 4892.24 4296.34 unavailable

The Florida Price Level Index measures the difference from county to county in the cost of purchasinga specific market basket of goods and services at a particular point in time.

Source: Bureau of Labor Statistics--Table 6 Consumer Price Index (www.b|s.gov)The 2002 Florida Price Level Index, Florida Department of Education (www.firn.edu/doe)

144

(Per $1,000)

(Unaudited)

Year Florida Escambia County Escambia / Florida1994 $165,911,752,000 $2,687,570,000 1.62%1995 $177,448,027,000 $2,952,818,000 1.66%1996 $188,509,273,000 $3,125,296,000 1.66%1997 $173,600,000,000 $3,077,864,000 1.77%1998 $183,800,000,000 $3,120,950,400 1.70%1999 $196,000,000,000 $3,195,358,300 1.63%2000 $207,409,799,600 $3,389,615,300 1.63%2001 $217,304,369,500 $3,389,946,900 1.56%2002 $228,751,266,400 $3,421,082,300 1.50%2003 $235,060,576,500 $3,582,899,500 1.52%

Source: Local Government Financial Information Handbook (www.fcn.state.fl.us/lcir)

TAXABLE RETAIL SALES

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Escambia County


$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Florida

145


$300,000,000,000

$250,000,000,000

$200,000,000,000

$150,000,000,000

$100,000,000,000

$50,000,000,000

$01994 1995 1996 1997 1998 1999 2000 2001 2002 2003


$4,000,000,000

$3,000,000,000 - 4"

$2,000,000,000

$1,000,000,000

$0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

. Escambia County

(Per $1,000)

(Unaudited)

fl Florida Escambia County Escambia / Florida1994 $165,911,752,000 $2,687,570,000 1.62%1995 $177,448,027,000 $2,952,818,000 1.66%1996 $188,509,273,000 $3,125,296,000 1.66%1997 $173,600,000,000 $3,077,864,000 1.77%1998 $183,800,000,000 $3,120,950,400 1.70%1999 $196,000,000,000 $3,195,358,300 1.63%2000 $207,409,799,600 $3,389,615,300 1.63%2001 $217,304,369,500 $3,389,946,900 1.56%2002 $228,751,266,400 $3,421 ,082,300 1.50%2003 $235,060,576,500 $3,582,899,500 1.52%

Source: Local Government Financial Information Handbook (www.fcn.state.fl.us/lcir)

145

(Unaudited)

Year Arrivals Departures1994 577,705 580,5861995 554,730 550,5971996 545,918 546,2141997 534,375 525,8751998 575,052 581,4321999 552,057 558,6392000 489,011 507,5732001 533,513 541,2632002 637,885 643,7302003 672,397 677,554

Source: Pensacola Municipal Airport

VISITORS BY AIR

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Arrivals Departures

146

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

VISITORS BY AIR

1994 1995 1996 1997 1998 1999 2000 2001

iArrivals El Departures

2002 2003

Egg!1994199519961997199819992000200120022003

(Unaudited)

Arrivals577,705554,730545,918534,375575,052552,057489,011533,513637,885672,397

Source: Pensacola Municipal Airport

146

Degartures580,586550,597546,214525,875581,432558,639507,573541,263643,730677,554

(Unaudited)

Escambia/Items Florida Escambia Florida

Lodging 34,895 403 1.15%Restaurants 38,810 601 1.55%

Source: Department of Business and Professional RegulationDivision of Hotels and RestaurantsBureau of Licensure

COMPARISON OF LODGING AND RESTAURANT ACCOUNTS

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Lodging Restaurants

FloridaEscambia

147

COMPARISON OF LODGING AND RESTAURANT ACCOUNTS

40,000

35,000 7

30,000 —

25,000 —

20,000 —

15,000 7

10,000 7

5,000 —

Lodging Restaurants

lFloridalEscambia

0 _—l—l

(Unaudited)

Items Florida EscambiaLodging 34,895 403Restaurants 38,810 601

Source: Department of Business and Professional RegulationDivision of Hotels and RestaurantsBureau of Licensure

147

Escambia/Florida

1.15%1.55%

(Unaudited)County of

Age Florida Age Escambia0-17 3,773,990 % of Population 21.86% 0-17 68,652 % of Population 22.50%

18-64 10,393,841 % of Population 60.22% 18-64 194,838 % of Population 63.86%

65 + 3,093,068 % of Population 17.92% 65 + 41,621 % of Population 13.64%

Source: (http://www.state.fl.us/edr/population/) (Updated: 09/2003)

AGE OF POPULATION

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

0-17 18-64 65 +

Florida Escambia

148

70.00%

AGE OF POPULATION

60.00%

50.00%

40.00%

30.00%

20.00% -—

10.00%

0.00%

0-17 18-64 65+

UFIorida ElEscambia

Source:

(DA9.047 3,773,990

18-64 10,393,841

65 + 3,093,068

% of Population

% of Population

% of Population

(Unaudited)

Florida Agg21.86% 0-17

60.22% 18-64

17.92% 65 +

(http://www.state.fl.us/edr/populationl) (Updated: 09/2003)

148

County ofEscambia

68,652 % of Population



22.50%

63.86%

13.64%

september30,2003 forthefiscalyearended county...

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