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    Comprehensive Annual FinancialReport

    Fiscal Year Ended September 30, 2010

    Lee County,Florida

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    Comprehensive Annual Financial ReportFor the

    Lee County, Florida

    Fiscal Year Ended September 30, 2010

    Charlie Green

    Prepared by:General Accounting Office, Finance & Records Department

    Clerk to Board of County Commissioners

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    Board of County Commissioners, Port Commissioners:

    Commissioner, District 1 John Manning

    Commissioner, District 2 Brian Bigelow

    Commissioner, District 3 Ray Judah

    Commissioner, District 4 Tammara Hall * **

    Commissioner, District 5 Frank Mann

    County Manager Karen Hawes

    Lee County Attorney David Owen

    Executive Director, Port Authority Robert Ball

    Hearing Examiner(s) Diana ParkerRichard Gescheidt

    * Chairman for Board of County Commissioners** Chairman for Board of Port Commissioners

    Lee County, Florida

    PRINCIPAL OFFICIALSAs of September 30, 2010

    Photographs provided by Ed Clement Photographic Services, Inc., Lee County Public Resources, Lee County Visitor & Convention Bureau,Lee County Port Authority, Lee County Water & Wastewater System, Lee County Solid Waste System, Lee County TransportationFacilities, and Lee County Transit.

    Elected Officials

    Appointed Officials

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    PAGELetter of Transmittal ixOrganizational Charts xviGovernment Finance Officers Association Certificate of Achievement xviii

    Independent Auditors' Report 2Management's Discussion and Analysis (unaudited) 4

    Basic Financial StatementsGovernment-Wide Financial Statements

    Statement of Net Assets . 16Statement of Activities ... 17

    Fund Financial StatementsGovernmental Fund Financial Statements

    Governmental Funds Balance Sheet .. 18Reconciliation of the Balance Sheet of Governmental Funds to the Statement of

    Net Assets...... 20Statement of Revenues, Expenditures, and Changes in

    Fund Balances- Governmental Funds 21Reconciliation of the Statement of Revenues, Expenditures, and Changesin Fund Balances of Governmental Funds to the Statement of Activities..... 23

    Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget (Non-GAAP Budgetary Basis) and Actual- General Fund. 24

    Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget (Non-GAAP Budgetary Basis) and Actual- Lee County Library ... 25

    Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget (Non-GAAP Budgetary Basis) and Actual- MSTU . 26

    Statement of Revenues, Expenditures, and Changes in Fund Balance-Budget (Non-GAAP Budgetary Basis) and Actual- Tourist Development Trust Fund 27

    Proprietary Fund Financial StatementsStatement of Net Assets .... 28Statement of Revenues, Expenses, and Changes in Fund Net Assets .... 30Statement of Cash Flows . 32

    Fiduciary Fund StatementsStatement of Fiduciary Net Assets ... 34Statement of Changes in Plan Net Assets ... 35

    Notes to the Financial Statements . 38

    Lee County, Florida

    Introductory Section

    COMPREHENSIVE ANNUAL FINANCIAL REPORTSeptember 30, 2010

    TABLE OF CONTENTS

    Financial Section

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    PAGE

    Required Supplementary InformationSchedule of Funding Progress (unaudited) .. 83

    General Fund Combining SchedulesBalance Sheet ..... 88Schedule of Revenues, Expenditures, and Changes in Fund Balances . 90Schedule of Revenues, Expenditures, and Changes in Fund Balances-

    Budget (Non-GAAP Budgetary Basis) and Actual.. 92Major Governmental Fund Schedule

    Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation

    to GAAP- Capital Improvement .. 96Non-Major Governmental Funds Combining Statements

    Non-Major Governmental Fund Descriptions ... 98Balance Sheet . 101Statement of Revenues, Expenditures, and Changes in Fund Balances ... 110Schedule of Revenues, Expenditures, and Changes in Fund Balances-

    Budget (Non-GAAP Budgetary Basis) and Actual- Special Revenue Funds 119Schedule of Revenues, Expenditures, and Changes in Fund Balances-

    Budget (Non-GAAP Budgetary Basis) and Actual- Debt Service Funds .. 125Schedule of Revenues, Expenditures, and Changes in Fund Balances-

    Budget (Non-GAAP Budgetary Basis) and Actual- Capital Project Funds 128Enterprise Funds Combining Schedule

    Enterprise Fund Descriptions .... 134Schedule of Revenues, Expenses, and Changes in Net Assets-

    Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP 135Internal Service Funds Combining Statements

    Internal Service Fund Descriptions . 138

    Statement of Net Assets ... 139Statement of Revenues, Expenses, and Changes in Fund Net Assets ... 140Statement of Cash Flows ... 141Schedule of Revenues, Expenses, and Changes in Net Assets-

    Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP 143Fiduciary Funds Combining Statements

    Fiduciary Fund Descriptions ... 148Statement of Net Assets.. 149Statement of Changes in Assets and Liabilities- Agency Funds 152

    Supplemental Financial Information

    Lee County, Florida

    TABLE OF CONTENTSSeptember 30, 2010

    COMPREHENSIVE ANNUAL FINANCIAL REPORT

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    PAGE

    Descriptions ... 156Schedule 1- Net Assets.. 157Schedule 2- Changes in Net Assets 158Schedule 3- Fund Balances of Governmental Funds 160Schedule 4- Changes in Fund Balances of Governmental Funds 161Schedule 5- Assessed Value and Estimated Actual Value of Taxable Property 162Schedule 6- Property Tax Rates- Direct and Overlapping Governments 163Schedule 7- Principal Property Taxpayers 164

    Schedule 8- Property Tax Levies and Collections 165Schedule 9- Ratio of Outstanding Debt by Type 166Schedule 10- Pledged Revenue Bond Coverage 167Schedule 11- Demographic and Economic Statistics 169Schedule 12- Principal Employers 170Schedule 13- Government Employees by Function/Program 171Schedule 14- Operating Indicators by Function/Program 172Schedule 15- Capital Asset Statistics by Function 173

    Tourist Development Tax Refunding Revenue Bonds, Series 2004 - Historical Tourist Develop-ment Tax Revenues and Gross Revenues and Debt Service Coverage 176

    Capital Revenue Bonds- Pledged Revenues and Debt Service Coverage 177Five Cent Local Option Gas Tax Refunding Revenue Bonds, Series 2004- Gas Tax Revenues and

    Number of Taxable Gallons Sold, Debt Service Coverage, and Allocation of Gas Tax Revenues 178Monthly Water Rates .. 179Water Restriction Surcharge Adjustment ... 179Monthly Wastewater Rates ... 180Water and Wastewater- Connection Fees ... 180Water Meter Installation and Service Connection Fees 180Water and Wastewater- Historical Revenues, Expenses and Debt Service Coverage ... 181Water and Wastewater- Customer Statistics 182Water and Wastewater- County System Top Ten Retail Utility Customers 183Historic Tipping Fees for Solid Waste System. 184Solid Waste- Historic Revenue and Operating Expenses .. 184Historic Number of Tons of Solid Waste Delivered to the System 185Solid Waste Historical Revenues and Expenses 186Solid Waste Notes to Historical Revenues and Expenses for Fiscal Year 2010 187

    Other Supplemental Schedules

    September 30, 2010

    Lee County, Florida

    COMPREHENSIVE ANNUAL FINANCIAL REPORT

    (unaudited)

    Statistical Section

    (unaudited)

    TABLE OF CONTENTS

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    PAGETransportation Facilities Toll Rates .. 191Transportation Facilities Traffic, Revenues and Expenses by Bridge 194Transportation Facilities- Revenues, Operating Expenses, and Debt Service Coverage 195Port Authority- Airlines Serving the Airport 196Port Authority- Airport Enplanements October 2009 - September 2010 197Port Authority- Historical Enplanements by Carrier Type 197Port Authority- Historical Landed Weight by Airline 198Port Authority- Historical Enplanements by Airline 198Port Authority- Primary Domestic Origin & Destination Passenger Markets 199

    Port Authority- Historical Aircraft Operations 200Port Authority- Historical Statement of Net Revenues 201Port Authority- Passenger Facility Charge Revenue Report, and Estimated Debt Service Coverage 202

    Other Supplemental Schedules (continued)(unaudited)

    TABLE OF CONTENTS

    Lee County, Florida

    COMPREHENSIVE ANNUAL FINANCIAL REPORTSeptember 30, 2010

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    Introductory Section

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    February 28, 2011

    To the Citizens of Lee County:

    e are pleased to present to you the accompanying Comprehensive Annual Financial Report of LeeCounty (the County) for the fiscal year ended September 30, 2010. State law requires that a

    complete set of financial statements, presented in conformance with generally accepted accountingprinciples (GAAP), audited by licensed independent certified public accountants be released to the publicwithin one year of the fiscal year end. This report is being issued in fulfillment of these statutoryrequirements.

    Responsibility for both the accuracy of the presented data and the completeness and fairness of thepresentation, including all disclosures, rests with the Clerk of Circuit Court as Chief Financial Officer ofthe County. We believe the data, as presented, is accurate in all material respects, that it is presented in amanner designed to fairly set forth the financial position and the results of operations of the County, andthat all disclosures necessary to enable the reader to obtain a comprehensive understanding of theCounty's financial activity have been included.

    Internal Controls

    he County has established a comprehensive internal control framework that is designed to providereasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized

    use or disposition, and ensure that the financial records for preparing financial statements andmaintaining accountability for assets are reliable. The concept of reasonable assurance recognizes that thecost of control should not exceed the benefits likely to be derived and that the evaluation of costs andbenefits requires estimates and judgments by management. All internal control evaluations occur withinthe above framework. We believe that the County's internal controls adequately safeguard assets andprovide reasonable assurance of properly recorded financial transactions.

    Independent Audit

    ancial statements have been auditedby KPMG LLP, a firm of licensed independent certified public accountants. The audit was performed

    to provide reasonable assurance that the financial statements for the fiscal year ended September 30, 2010,are free of material misstatement. The audit involved examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements; assessing the accounting principles used andsignificant estimates made by management; and evaluating the overall financial statement presentation.The independent auditor concluded, based upon the audit, that there was a reasonable basis for

    September 30, 2010, arepresented in the Financial Section of this report.Report is the 4-14) and should be read in conjunction withthis transmittal letter.

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    County Structure and Services

    ee County was founded in 1887 and named in honor of General Robert E. Lee. The County is locatedon the Gulf of Mexico in the southwestern portion of Florida and encompasses approximately 811

    square miles, including several small islands in the Gulf of Mexico. Threeincorporated municipalities are located on the mainland: Fort Myers (one of twocounty seats), Bonita Springs, and Cape Coral (second county seat). The Town of FortMyers Beach is located on Estero Island and the City of Sanibel is situated on SanibelIsland. The unincorporated communities include Lehigh Acres, Estero, North FortMyers, Tice, Alva, Matlacha, Bokeelia, St. James City, and Captiva Island. LeeCountys climate can be classified as subtropical with temperatures averaging from 66 degrees (F) inwinter to 83 degrees (F) in summer.

    Lee County experienced significant growth between 2000 and 2010 increasing itspopulation by approximately 41 percent to a projected 622,900 for 2010. Lee Countycontinues to grow and the projected population for 2015 is 701,000. With 24 percentof its residents age 65 and older, the County is well known as a retirement destinationand therefore growth is projected to continue through the next decade, although at a

    slower rate than originally anticipated.

    County Services and Reporting Entity

    he County provides its citizens with a wide range of services that include lawenforcement, human and community assistance-related services, civil and criminal

    justice system services, road and bridge maintenance, park operation, library services,economic and physical environment, as well as other general andadministrative support services. In addition, airport facilities, transitsystem, water and wastewater system, toll bridge facilities, and a waste-to-energyfacility are provided under an enterprise concept with user charges set by the Board ofCounty Commissioners.

    The Board of County Commissioners (the Board) is the legislative body for the County, having theresponsibility of budgeting and providing all the funding used by the various Countydepartments and the separate Constitutional Officers, with the exception of fees collectedby the Clerk of Circuit Court, Property Appraiser, and Tax Collector. Under the direction ofthe Clerk of Circuit Court, the Finance & Records Department maintains the accountingsystem for the Boards operations. The other Constitutional Officers maintain their ownaccounting systems. For purposes of this report the operations of the County as a whole, including allConstitutional Officers, have been presented.

    In addition to the divisions of the Board and the Constitutional Officers, the Lee County Port Authority, ablended component unit, is included in the Comprehensive Annual Financial Report.

    Budgetary Controls

    he adopted budget is controlled in accordance with Chapter 129, Florida Statutes , and a formalbudget policy which is incorporated into the Countys Administrative Code. The

    Director of Budget Services, on behalf of the County Manager, is responsible for thepreparation of the Boards budget. The legally adopted total appropriation for a fundmay only be changed by resolution of the Board. Full authority to transfer budgetary

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    amounts other than these instances is delegated to the County Manager or the Director of BudgetServices. When the Board adopts the program budget it is integrated into thereporting system for management reporting purposes. Budget-to-actualcomparisons are provided in the report for each fund for which an appropriatedannual budget has been adopted. Original and final budgets for major

    governmental funds are also provided. The Constitutional Officers budgets control isretained at the fund level; the budgets of the Property Appraiser and Tax Collector are

    approved by the Florida Department of Revenue and those of the Clerk of the CircuitCourt (excluding fees and court-related budgets), Sheriff, and Supervisor of Electionsare approved by the Board. The court-related portion of the Clerk of Circuit Courts

    budget is determined by the State of Floridas legislature in the General Appropriations Act anddistributed to the Clerk via an appropriation from the State.

    Financial Condition of the County

    Local Economy

    ee County has long been a popular vacation and retirement spot with 50 miles of sandy beaches and97 local, state, and national parks. Lee County contains more than 90 golf courses and ranks fifth in

    the nation for hole-per-person ratio. Lee County is also home to the Boston Red Sox and MinnesotaTwins spring training. Although Lee County experiences year-round tourism, the number of touristincreases in winter as does the retiree population.

    The figures provided by Lee Countys Visitor and Convention Bureau for the calendaryear-to-date period as of September show a slight increase in tourist visits. Despite theslight increase in tourism this year, passenger traffic at SouthwestFlorida International Airport (SWFIA) reflected a 1.0 percent decrease

    from the previous fiscal year. However, Southwest Florida International Airport hasserved more than five million passengers each year since 2000 and continues to rankamong the 50 busiest airports in the nation, according to the U.S. Department ofTransportation. Although the effect cannot be quantified, the BP oil spill in the Gulf of Mexico caused

    visit cancellations thereby reducing the number of expected visitors to the area this year.

    Employment

    Lee County has seen tremendous growth in the past. According to the United StatesDepartment of Labor, Bureau of Labor Statistics, the labor force has increased 32 percentfrom 2000 to 2010, and 79 percent from 1990 to 2010. The labor force at September 30, 2010,2009, and 2008 was 275,472, 275,493, and 282,071, respectively. Employment in the Countyas of September 30, 2010 is estimated at 238,208 and is predicted to increase by 12.8 percent to 268,728 by2017.

    Lee County experienced a housing boom in recent years that is now contracting and consequently theCounty is experiencing its related effects. As unemployment peaked and declinedthroughout the nation during this past fiscal year, it vacillated from month-to-month inthe County. The unemployment rate for September 2010 for the County was 13.5 percentcompared to 11.9 percent for Florida, and 9.6 percent nationally.

    According to the United States Department of Labor, Bureau of Labor Statistics, in 2010the non-agricultural employment for the Lee County Metropolitan Area was comprised of21.4 percent in Trade, Transportation and Utilities, 18.4 percent in Government (Federal,

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    State and local), 14.1 percent in Leisure and Hospitality, 12.1 percent in Professional and BusinessServices, 12.0 percent in Education and Health Services, 8.5 percent in Natural Resources, Mining andConstruction, and 13.5 percent in all other.

    Economic Conditions

    The mainstays of the Countys economy are tourism and retirement, and their associated

    services, such as health, trade, and other service-orientated industries. The County also hasreal estate development, agribusiness, high-tech manufacturing, corporate and regionalheadquarters, warehousing and distribution, and financial service industries.

    Foreclosures in the County decreased significantly this fiscal year to 12,839, which is a40.6 percent decrease from prior year. According to the Florida Realtors and theUniversity of Florida Bergstrom Center for Real Estate Studies, the median sales price ofan existing single-family home for the Fort Myers-Cape Coral metropolitan area in

    September 2010 and 2009 was $94,400 and $89,700, respectively. The median price forexisting condominiums at September 2010 and 2009 was $105,500 and $102,900,respectively. Sales of existing single-family homes in the current fiscal year were 16,277, ascompared to 14,270 in the previous year, which is an increase of 14 percent. Sales ofexisting condos in the current fiscal year were 4,913, as compared to 3,257 in the previous year, which is a50.8 percent increase.

    Current and Long-Term Capital Initiatives

    he Countys Capital Improvement Program (CIP) consists of capital projects which reflect theCountys infrastructure needs over a five-year time frame and include assets with long-term value

    such as buildings, roads, bridges, and parks.

    Significant capital projects and other initiatives completed in fiscal year 2010 include:

    Expanded Gateway Wastewater Treatment Plant at a cost of $38.7 million.Widened Gladiolus Drive from Winkler Road to Pine Ridge Road including widening of BassRoad and A&W Bulb Road at a cost of $24 million.Constructed a multi-level parking garage as part of the expansion of the Justice Center at a cost of$17 million.Constructed Northwest Regional Library, a 41,000 square foot regional library located betweenMariner High School and Mariner Middle School at a cost of $14.1 million.Expanded the Corkscrew Water Treatment Plant and well fields for a projected cost of $9.5million.Expanded the recycling facility including converting to a single-stream process at a cost of $8million.Completed Phase I of improvements to the Olga Water Treatment Plant and well fields at a cost

    of $5 million.Completed Phase I of the North Lee County well field expansion at a cost of $4.8 million.Relocated Gladiolus Water and Sewer main lines between Pine Ridge Road and Winkler Road ata cost of $4.4 million.Constructed a composting facility at the Lee/Hendry Landfill at a cost of $3.5 million.Completed the Matanzas Pass Force Main Replacement project at a cost of $3.3 million.Installed replacement force main lines in the East Lee County area at a cost of $2.7 million.Summerlin Road Waterline Relocation at a cost of $2.1 million.

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    Constructed a maintenance and storage facility at the Waste to Energy site at a cost of $1.7million.Sewer lining in various areas to reduce inflow and infiltration at a project cost of $1.6 million.

    Projects currently in progress include the following :

    Construction of a new baseball stadium and practice fields for the Boston Red Sox for a projected

    cost of $75 million.Widening of Summerlin Road from Boy Scout Road to Cypress Lake Drive including an overpassat College Parkway for a projected cost of $33 million.Widening of Colonial Boulevard from Six Mile Cypress/Ben C. Pratt Parkway to State Road 82for a projected cost of $31 million.Replacement of the 2-lane, bascule Matlacha Pass Bridge for a projected cost of $23 million.Construction of a two story library in Fort Myers for a projected cost of $20 million.Expansion of the North Lee County RO Water Treatment Plant for a projected cost of $18.5million.Construction of a new Public Safety/Emergency Operations Center Complex for a projected costof $15 million.Reconstruction of the Cape Coral and Midpoint toll plazas for a projected cost of $14.8 million.

    Waterway Estates Wastewater Treatment Plant flow diversion to North Fort Myers WastewaterTreatment Plant for a projected cost of $10.8 million.Widening of Six Mile Cypress from north of Daniels Parkway to south of Winkler Extension for aprojected cost of $10.5 million.Phase 2 of the North Lee County RO well field expansion for a projected cost of $9.5 million.Construction of an injection well for the disposal of leachate and leachate handling infrastructureat the Lee Hendry landfill for a projected cost of $5 million.Design of the Green Meadows Water Treatment Plant for a projected cost of $4.2 million.Construction of a construction debris recycling facility for a projected cost of $3.5 million.Corkscrew Water Plant filter conversion and rehabilitation for a projected cost of $1.9 million.Improvements to the Olga Water Treatment Plant process controls for a projected cost of $1.7million.

    Replacement of the sewer force main along Pine Ridge Road from San Carlos to Fort Myers BeachWastewater Treatment Plant for a projected cost of $1.6 million.Improvements to the Corkscrew Water Plant high service pump and chemical storage tank for aprojected cost of $1.0 million.Replacement of the sewer force main San Carlos Blvd. from Main Street to Hurricane Pass for aprojected cost of $1.0 million.Replacement of the Fort Myers Beach influent pipe for a projected cost of $1.0 million.

    Cash Management and Investments

    ash that was temporarily idle during the year was invested. Cash in a depository

    account is either invested in overnight repurchase agreements, one-day discountnotes, or transferred to qualified money market funds. The County also had fundsinvested in the State Board of Administrations (SBA) Local Government Surplus FundsInvestment Pool Trust Fund (please refer to the Cash and Investment footnote). TheBoards repurchase agreements (repos) require the investments to be collateralized at 101 percent forTreasuries or 102 percent for Agencies. The risk of loss is considered minimal to the County due to theshort-term nature of these investments.

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    Investments during the year were :

    Repurchase agreements with primary United States broker/dealer firms, reporting daily to theNew York Federal Reserve Bank. All term repurchase agreements (except those held by theCountys trustees) are collateralized by 101 to 105 percent with the collateral held in the Countysname by a third-party safekeeping agent. The collateral is valued weekly and interest earnedranged from 0.01 percent to 0.25 percent.

    Treasury bills and notes, government agencies and instrumentalities, and money market mutualfunds whose investments consist primarily of municipals and U.S. government obligations. Atfiscal year-end the maturities of the investments ranged from two to eighteen months andinterest earned ranged from 0.34 percent to 2.125 percent.

    The Florida State Board of Administration operates an investment pool for local governments,which was split into two funds: Fund A, which paid interest, and Fund B, which does not payinterest but allowed periodic transfers to Fund A as the underlying investments matured. Theaverage yield for the pool for the fiscal year was 0.27 percent.

    Risk Managementhe Board maintains self-insurance programs to administer insurance activities related to propertyand casualty, county-wide employee health and dental programs, general liability, and workers

    compensation. The concept of the self-insurance programs is to allow the County to absorb losses up to aspecific annual amount. Excess and other specific coverages are purchased from third-party carriers.

    Funding for these programs is generated by charges to the operating departmentsbased on managements annual estimates of claim loss funding andadministration/operating costs. The Lee County Sheriffs Office does notparticipate in the Countys insurance programs and maintains a separate self-insurance fund for their employee health and dental coverage. The Port Authority

    does not participate in the property and casualty self-insurance program.

    Awards and Acknowledgments

    Awards

    he Government Finance Officers Association of the United States and Canada (GFOA) awarded aCertificate of Achievement for Excellence in Financial Reporting to the County for its

    Comprehensive Annual Financial Report for the fiscal year ended September 30, 2009.This was the twenty-fifth consecutive year that the County has received this prestigiousaward. To be awarded a Certificate of Achievement, the County had to publish an easily

    readable and efficiently organized Comprehensive Annual Financial Report whichsatisfied both generally accepted accounting principles and applicable legalrequirements. A Certificate of Achievement is valid for a period of one year only. Webelieve our current Comprehensive Annual Financial Report continues to meet theCertificate of Achievement Program's requirements, and we are submitting it to GFOA to determine itseligibility for another certificate.

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    Acknowledgements

    The preparation of the Comprehensive Annual Financial Report on a timely basis was made possible bythe dedicated service of the entire staff of the Finance Department and the various managers and fiscalofficers of the County Departments. The efforts of Finance's General Accounting personnel, specificallySean ONeill, Rose Hardt, Pat Stokes, Melinda Pensinger, Kirk Knowles, Laz Rodriguez-Delgado, MarionPacelli, and Tracy Kepes are especially noteworthy.

    Respectfully submitted,

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    Financial

    Section

    1

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    Managements Discussion and Analysis(unaudited)

    his discussion and analysis of Lee Countys (the County) financial statements is designed to introduce thebasic financial statements and provide an analytical overview of the Countys financial activities for the

    fiscal year ended September 30, 2010. The basic financial statements are comprised of the government-widefinancial statements, fund financial statements, and footnotes to the financial statements. We hope this willassist readers in identifying significant financial issues and changes in the Countys financial position.

    Financial Highlights

    At the close of fiscal year 2010 the Countys assets exceeded its liabilities, resulting in total net assets of$3,588,443,000. Governmental and business-type assets exceeded its liabilities by $2,200,683,000 and$1,387,760,000, respectively.

    The Countys total net assets decreased $19,442,000, or -0.5 percent, in comparison to prior year. The County had $884,143,000 of unrestricted net assets that can be used to meet the Countys ongoing

    operations.

    Total revenues decreased $114,758,000, or -10.6 percent, in comparison to prior year. Total expenses decreased $6,816,000, or -0.7 percent, in comparison to prior year. The Countys governmental activities reported total net assets of $2,200,683,000, which is a decrease of

    $40,082,000, or -1.8 percent, in comparison to prior year. Approximately 27.8 percent of the total, or$612,235,000, is unrestricted, undesignated, and thus available for use at the Countys discretion.

    The Countys business-type activities reported total net assets of $1,387,760,000, which is an increase of$20,640,000, or 1.5 percent, in comparison to prior year. Approximately 19.6 percent of the total, or$271,908,000, is unrestricted, and thus available for spending at the Countys discretion.

    Government-wide Financial Statements

    he government-wide financial statements (statement of net assets and statement of activities found onpages 16-17) concentrate on the County as a whole and do not emphasize fund types but rather a

    governmental or a business-type classification, which are presented in separate columns. The governmentaland business-type activities comprise the primary government. Fiduciary funds are not included in thegovernment-wide financial statements.

    General governmental and intergovernmental revenues support the governmental activities, whereas thebusiness-type activities are primarily supported by user fees and charges for services. The purpose of thegovernment-wide financial statements is to allow the user to be able to analyze the Countys total financialposition.

    The statement of activities reflects the expenses of a given function or program, which are offset by programrevenues. Program revenues are defined as charges for services, operating grants and contributions, andcapital grants and contributions directly associated with a given function. Taxes are reported under generalrevenue. The County maintains an allocation program for indirect expenses and therefore reports thisallocation in a separate column on the government-wide statement of activities.

    The effect of the interfund activity has been removed from the government-wide financial statements.However, the interfund services between functions are not eliminated. The internal service activity has beeneliminated except for the outside activity on the government-wide financial statements.

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    Fund Financial Statements

    he accounts of the County are organized on the basis of funds, each of which is considered a separateaccounting entity. The operations of each fund are accounted for with a separate set of self-balancing

    accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues, and expenditures orexpenses, as appropriate. Government resources are allocated to and accounted for in individual funds basedupon the purpose for which they are to be spent and the means by which spending activities are controlled.

    The Countys funds are presented in separate fund financial statements. These funds are presented on agovernmental fund financial statement and a proprietary fund financial statement. The Countys major fundsare presented in separate columns on the fund financial statements. The definition of a major fund is one thatmeets certain criteria set-forth in Governmental Accounting Standards Board Statement Number 34, BasicFinancial Statements- and Managements Discussion and Analysis- for State and Local Governments (GASB 34). Thefunds that do not meet the criteria of a major fund are considered non-major funds and are combined into asingle column on the fund financial statements. However, a non-major fund can be designated as a majorfund if the County chooses to do so.

    The County adopts an annual budget for all funds except for agency funds, Sheriffs internal service andspecial revenue funds, and the Property Appraisers special revenue fund. A budgetary comparison has beenpresented for the General Fund, Library, MSTU, and Tourist Development Trust Fund which compares notonly actual results to budget but also the original adopted budget to final budget.

    Governmental Fund Financial Statements

    overnmental fund financial statements (found on pages 18-27) are prepared on the modified accrualbasis using the current financial resources measurement focus. Under the modified accrual basis,

    revenues are recognized when they become measurable and available as net current assets. Although theactivity of the internal service funds is reported with the governmental activities on the government-widefinancial statements they are not combined on the government fund financial statements.

    Five of the Countys governmental funds, the General Fund, Lee County Library, Municipal Service TaxingUnit (MSTU), Tourist Development Trust Fund, and Capital Improvement are classified as major funds. Allother governmental funds are combined into a single column on the governmental fund financial statements.Individual fund data for the non-major funds are found in combining statements as supplemental financialdata.

    Proprietary Fund Financial Statements

    roprietary fund financial statements (found on pages 28-33), like government-wide financial statements,are prepared on the full accrual basis. Proprietary funds record both operating and non-operating

    revenues and expenses. Operating revenues are those that are obtained from the operations of the proprietaryfund.

    The County reports the Port Authority, Water and Wastewater, Transportation Facilities, and Solid Waste asmajor funds in the proprietary fund financial statements. These enterprise funds are used to present the samefunctions that are presented in the government-wide financial statements. The only non-major fund, Transit,is reported in a separate column. The internal service funds are presented in their entirety combined in asingle column on the proprietary fund financial statements.

    The internal service funds are used to account for data processing, risk management, radio communications,telecommunications, fleet management, and health, dental, liability self-insurance, and workers

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    compensation services on a cost reimbursement basis. Individual fund data is in the combining statements assupplemental financial data.

    Fiduciary Fund Financial Statement

    he fiduciary fund financial statement (found on pages 34-35) is not included in the government-widefinancial statements because the resources of those funds are not available to support the Countys

    programs. The County maintains an other postemployment benefits trust fund that is used to hold the plansassets, and agency funds that are used to account for assets held by the County as an agent for individualsand other governments.

    Government-Wide Financial Analysis

    he government-wide financial statements were designed so that the user could determine if the County isin a better or worse financial condition from the prior year.

    The following is a condensed summary of net assets for the primary government for fiscal years 2010 and

    2009.

    Lee County, FloridaSummary of Net Assets

    September 30, 2010 and 2009(amounts expressed in thousands)

    Governmental Business-typeActivities Activities Total

    2010 2009 2010 2009 2010 2009Current and other assets $837,635 $938,172 $514,310 $534,823 $1,351,945 $1,472,995Capital assets 1,774,663 1,697,103 1,868,416 1,877,601 3,643,079 3,574,704

    Total assets 2,612,298 2,635,275 2,382,726 2,412,424 4,995,024 5,047,699Other liabilities 57,680 100,349 60,328 80,362 118,008 180,711Non-current liabilities 353,935 294,161 934,638 964,942 1,288,573 1,259,103

    Total liabilities 411,615 394,510 994,966 1,045,304 1,406,581 1,439,814

    Net Assets:Invested in capital assets, netof related debt 1,547,366 1,456,025 1,010,013 971,317 2,557,379 2,427,342

    Restricted 41,082 344,343 105,839 111,201 146,921 455,544Unrestricted 612,235 440,397 271,908 284,602 884,143 724,999

    Total net assets $2,200,683 $2,240,765 $1,387,760 $1,367,120 $3,588,443 $3,607,885

    Invested in capital assets, net of related debt is the largest portion of the net assets. This represents capitalassets (land, buildings, improvements, equipment, furniture, vehicles and rolling stock, and infrastructure),net of accumulated depreciation, and the outstanding related debt (less unspent proceeds) used to acquire theassets. The invested in capital assets, net of related debt balance of $2,557,379,000 (71.3 percent of total netassets) increased $130,037,000, or 5.4 percent, in comparison to prior year.

    The restricted net asset balance of $146,921,000 (4.1 percent of total net assets), decreased $308,623,000, or-67.7 percent, in comparison to prior year. This balance represents assets that are subject to externalrestrictions imposed by creditors, through bond covenants, by grantors, or by law, on how they are used.

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    The unrestricted net asset balance of $884,143,000 (24.6 percent of total net assets), increased $159,144,000 or22.0 percent, in comparison to prior year. This balance represents assets that are available for spending at theCountys discretion.

    The following schedule compares the revenues, expenses, and changes in net assets for the primarygovernment for the current and previous fiscal years:

    Lee County, FloridaSummary of Revenues, Expenses, and Changes in Net Assets

    For the Years Ended September 30, 2010 and 2009(amounts expressed in thousands)

    Governmental Business-typeActivities Activities Total

    2010 2009 2010 2009 2010 2009

    Revenues:Program revenues:Charges for services $109,542 $121,787 $309,974 $310,058 $419,516 $431,845Operating grants and contributions 58,707 35,215 8,405 5,749 67,112 40,964Capital grants and contributions 13,761 10,342 22,045 46,122 35,806 56,464

    General revenues:Taxes 367,597 460,133 3,703 3,110 371,300 463,243Impact fees 3,127 7,003 3,127 7,003Grants and contributions notrestricted to specific programs 44,151 44,666 44,151 44,666

    Other 20,599 30,405 3,004 4,783 23,603 35,188Total revenues 617,484 709,551 347,131 369,822 964,615 1,079,373

    Expenses:Program activities:General government 226,744 221,292 226,744 221,292Public safety 222,842 234,004 222,842 234,004

    Physical environment 12,249 15,869 12,249 15,869Transportation 57,757 64,026 57,757 64,026Economic environment 35,113 24,886 35,113 24,886Human services 26,170 24,891 26,170 24,891Culture and recreation 60,476 64,625 60,476 64,625Interest on long-term debt 11,380 12,144 11,380 12,144Indirect expenses (3,751) (3,807) 3,751 3,807 - -

    Business-type activities:Airport 98,917 103,029 98,917 103,029Water and wastewater 103,476 95,782 103,476 95,782Transit 22,347 22,769 22,347 22,769Transportation Facilities 28,455 28,022 28,455 28,022Solid Waste 78,131 79,534 78,131 79,534Total expenses 648,980 657,930 335,077 332,943 984,057 990,873

    Total change in net assetsbefore transfers (31,496) 51,621 12,054 36,879 (19,442) 88,500

    Transfers (8,586) (9,580) 8,586 9,580 - -Increase (decrease) in net assets (40,082) 42,041 20,640 46,459 (19,442) 88,500Net assets October 1 2,240,765 2,198,724 1,367,120 1,320,661 3,607,885 3,519,385Net assets September 30 $2,200,683 $2,240,765 $1,387,760 $1,367,120 $3,588,443 $3,607,885

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    Total revenues decreased $114,758,000, or -10.6 percent, in comparison to prior year. Total expenses decreased$6,816,000, or -0.7 percent, in comparison to prior year.

    Governmental Activities

    he governmental activities increased or (decreased) the Countys total assets, total liabilities, and total netassets by ($22,977,000), $17,105,000, and ($40,082,000), respectively. The decrease in total net assets

    resulting from governmental activities is 206.2 percent of the total decrease in total net assets. The increase inthe governmental activities invested in capital assets net of related debt is $91,341,000, or 6.3 percent, incomparison to prior year.

    The following is a chart of revenues by source for governmental activities by percent of total revenues forfiscal year 2010.

    Total revenues for governmental activities decreased $92,067,000 or -13.0 percent, in comparison to prior year.

    The following is a chart of revenues by source for governmental activities for fiscal years 2010 and 2009.

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    The main components of the change in total revenues for governmental activities were as follows:

    Charges for services decreased $12,245,000, or -10.1 percent, in comparison to prior year. The mainreason for the decrease is a direct result of a state senate bill that changed Section 28.37(2), FloridaStatutes , so that effective July 1, 2009 all court-related fines, fees, and service charges are consideredState funds and are remitted to the States Department of Revenue for deposit into the Clerks of theCourt Trust Fund within the Justice Administrative Commission.

    Operating grants and contributions increased $23,492,000, or 66.7 percent, in comparison to prioryear. The main reason for the increase is a direct result of a state senate bill that changed Section28.37(2), Florida Statutes , so that effective July 1, 2009 funding for the court-related operations is amonthly appropriation from the State, which is determined by the legislature in the GeneralAppropriations Act. In addition, in the current year the County received $9,986,000 more for theNeighborhood Stabilization Grant than in the prior year.

    Taxes decreased $92,536,000, or -20.1 percent, in comparison to prior year, due to the decrease inproperty values.

    Other governmental revenues decreased $9,806,000, or -32.3 percent, in comparison to prior year,primarily due to lower investment earnings.

    Total expenses for governmental activities decreased $8,950,000, or -1.4 percent, in comparison to prior year.

    The following is a chart of expenses by program for governmental activities for fiscal years 2010 and 2009.

    The main components of the change in total expenses for governmental activities were as follows:

    General government expenses reported in governmental activities increased $5,452,000, or 2.5

    percent, in comparison to prior year. The major component of the increase is due to the increase inthe other postemployment benefit liability. Public safety expenses decreased $11,162,000, or -4.8 percent, in comparison to prior year. The EMS

    bad debt adjustment was $4,746,000 lower in the current year than prior year. The Sheriff reducedstaffing and lowered costs which resulted in a decrease of $4,787,000 from prior year. In the prioryear the Sheriff offered a voluntary incentive separation program at a cost of $1,952,000.

    Physical environment decreased $3,620,000, or -22.8 percent, in comparison to prior year primarilydue to fewer project expenses related to the Blind Pass Restoration Project.

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    Transportation expenses decreased $6,269,000, or -9.8 percent, in comparison to prior year due topayments made in the prior year of $5,000,000 to the City of Fort Myers for the State Road 82Corridor Interlocal Agreement, and $1,661,000 to the Town of Fort Myers Beach for the local optiongas tax settlement agreement.

    Economic environment increased $10,227,000, or 41.1 percent, in comparison to prior year primarilydue to expenditures related to the Neighborhood Stabilization grant.

    Culture and recreation expenses decreased $4,149,000 or -6.4 percent, in comparison to prior year dueto lower expenditures for Buckingham Community Center improvements, Countywide Poolimprovements, Art of the Olympians funding, Library personnel and operating costs, and a reductionin Parks personnel costs. In addition, in the prior year there was a one-time payment to the Town ofFort Myers Beach to assume operations of the Bay Oaks Park.

    Business-Type Activities

    he business-type activities increased or (decreased) the Countys total assets, total liabilities, and total netassets by ($29,698,000), ($50,338,000), and $20,640,000, respectively. The increase in the business-type

    activities invested in capital assets net of related debt is $38,696,000, or 4.0 percent, in comparison to prior

    year.

    Total revenues reported in business-type activities decreased $22,691,000, or -6.1 percent in comparison toprior year. In the prior year there was a one-time payment of $7,939,000 from Florida Gulf Coast Universityfor connection fees. There was also a decrease of $6,650,000 in Water and Wastewater developer contributedassets. In addition, the Port Authority had fewer capital grants in the current year.

    The following is a chart of revenues by source for business-type activities for fiscal years 2010 and 2009.

    The following is a chart of expenses by program for business-type activities for fiscal years 2010 and 2009.

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    Total business-type expenses increased $2,134,000, or 0.6 percent, in comparison to prior year.

    Financial Analysis of the Governments FundsGovernmental Funds

    overnmental funds are comprised of the General Fund, special revenue funds, debt service funds, andcapital projects funds. As noted earlier governmental funds use the current financial resources

    measurement focus that focuses on near-term inflows and outflows. The General Fund is the generaloperating fund that is used to account for all financial resources, except those required to be accounted for inanother fund.

    The following are noteworthy facts and changes from prior year for major funds.

    General Fund- Total ad valorem taxes decreased $68,028,000, or -29.72 percent, due to a decrease in propertyvalues. Franchise fees decreased $886,000 or -10.5 percent, which is a direct relationship to usage.

    Lee County Library- Ad valorem taxes decreased $5,069,000, or -32.4 percent, due to a decrease in propertyvalues.

    Municipal Service Taxing Unit (MSTU)- Ad valorem taxes decreased $8,230,000, or -30.6 percent, due to adecrease in property values. Communication Services Tax revenue decreased $752,000, or -7.4 percent, whichis a direct relationship to usage. Licenses and permit revenue increased $1,754,000, or 32.0 percent, due to anincrease in permit fees.

    Tourist Development Trust Fund- Tourist Tax revenue increased $875,000, or 3.9 percent, due to an increase intourists visiting the area.

    Capital Improvement- Ad valorem taxes decreased $9,310,000, or -29.7 percent, due to a decrease in propertyvalues.

    Proprietary Funds

    roprietary funds are comprised of enterprise funds and internal service funds. An enterprise fund is usedto account for activities for which a fee is charged to external users for goods and services. Internal

    service funds are those that provide a service, primarily within the government, and charge a recovery fee.

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    The following are noteworthy facts and changes from prior year for major funds.

    Port Authority- User fees increased $2,016,000, or 4.4 percent; however rebates increased $3,035,000, or 128.2percent for a net decrease in operating revenue of $694,000, or -0.8 percent. Most costs decreased for a totaldecrease in operating expenses of $3,550,000, or -4.4 percent.

    Water and Wastewater- User fees decreased $471,000, or -0.6 percent, due to the downturn in the economy thathas adversely affected consumers water consumption patterns. Most operating expenses decreased or didnot change significantly, however depreciation which increased $3,377,000, or 11.4 percent due to an$88,853,000 increase in capital assets. Capital contributions decreased $16,221,000, or -75.7 percent, due to areduction of developer contributed assets.

    Transportation Facilities Toll revenue decreased $487,000, or -1.3 percent, due to a continued downturn intraffic crossing the bridges. Total operating expenses decreased $19,000, or -0.1 percent. A loss ondiscontinued projects in the amount of $1,163,000 was due to the cancellation of the Colonial Road project.

    Solid Waste User fees and rentals increased $933,000, or 1.3 percent, due to increases in the Hendry Countytipping fees, recycling plant materials, and the recycling surcharge. Miscellaneous revenue increased$712,000, or 4.2 percent, due to electric revenues from the third burner. Most costs either increased ordecreased slightly except utilities which decreased $438,000, or -35.1 percent, due to a decrease in utility bills.

    General Fund Budgetary and Actual Highlights

    The difference between the original adopted and final amended budget in the General Fund is $14,312,000.The major differences include:

    $6,000,000 increase for the incentive payment to Algenol Biofuels, Inc. via the FIRST IncentiveProgram.

    $2,000,000 increase for the Estero Island Beach Renourishment.

    $1,640,000 increase for the Low Income Energy Assistance Program. $1,431,000 increase for the Neighborhood Stabilization Program grant.

    The remaining amendments are a combination of increases and decreases for various reasons whichseparately are not noteworthy.

    The variance between the final amended budget and actual expenditure results for the General Fund is afavorable variance of $57,524,000. The major differences include:

    $5,790,000 is due to Human Services for the Neighborhood Stabilization Program grant $5,244,000 due to Justice Center renovations $3,212,000 is due to the Admin East Building renovations

    $2,194,000 is due to landscaping $2,000,0000 is due to cost savings from the Sheriffs Office $2,000,000 is due to Estero Island Beach Renourishment $1,818,000 is due to unfilled EMS positions $1,748,000 is due to the WCIND Navigational Improvements grant $1,481,000 is due to a grant for the Emergency Operations Center $1,595,000 is due to the LIHEAP grant

    The remaining differences are for various reasons which separately are not noteworthy.

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    Capital Assets

    on-depreciable capital assets include land, construction in progress, software in progress, and artwork.Depreciable assets include buildings, improvements other than buildings, machinery and equipment,

    software, and infrastructure.

    The following is a schedule of the Countys capital assets as of September 30, 2010 and 2009:

    Lee County, FloridaSummary of Capital AssetsSeptember 30, 2010 and 2009

    (amounts expressed in thousands)

    Governmental Business-typeActivities Activities Total

    2010 2009 2010 2009 2010 2009Artwork $331 $304 $50 $381 $304Land 532,157 553,679 220,969 $232,938 753,126 786,617Easements & rights of way 59,350 16,821 76,171Construction in progress 203,508 319,058 97,431 154,307 300,939 473,365Software in progress 475 2,916 195 139 670 3,055Buildings 435,245 329,074 502,568 477,905 937,813 806,979Improvement other than buildings 153,732 126,416 417,444 378,185 571,176 504,601Machinery & equipment 229,494 214,622 373,922 351,068 603,416 565,690Software 13,219 10,988 2,999 2,878 16,218 13,866Infrastructure 628,906 578,068 902,234 876,255 1,531,140 1,454,323Total capital assets 2,256,417 2,135,125 2,534,633 2,473,675 4,791,050 4,608,800Accumulated depreciation (481,754) (438,022) (666,217) (596,074) (1,147,971) (1,034,096)

    Total $1,774,663 $1,697,103 $1,868,416 $1,877,601 $3,643,079 $3,574,704

    Noteworthy capital asset purchases/completed projects that took place in fiscal year 2010 were as follows:

    Completed expansion of the Gateway Wastewater Treatment Plant Completed expansion of Gladiolus Drive Completed construction of a multi-level parking garage as part of the Justice Center expansion Completed construction of the Northwest Regional Library Completed the expansion of the Corkscrew Water Treatment Plant Completed expansion of the recycling facility including converting to a single-stream process Completed Phase I of improvements to the Olga Water Treatment Plant

    Additional information on the Countys capital assets can be found in Note V on pages 54-57.

    Debt Administration

    t September 30, 2010, the County had $1,069,803,000 of outstanding bonded debt. The revenue bonds,which are each payable from a specific revenue stream, had an outstanding balance of $1,069,803,000, or

    100 percent of the total bonded debt. The outstanding bond balance decreased $60,450,000, or -5.3 percent, incomparison to prior year.

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    Lee County, Florida

    Total long-term liabilities of $1,288,320,000, which includes bonds payable (net of unamortizeddiscounts/premiums and gains/losses), variable debt, notes payable, self-insurance claims payable,compensated absences, landfill closure and postclosure costs, and arbitrage payable increased $29,584,000, or2.4 percent, in comparison to prior year. The following is a schedule of outstanding bonds as of September30, 2010 and 2009.

    Lee County, FloridaSummary of Outstanding Debt

    September 30, 2010 and 2009(amounts expressed in thousands)

    Governmental Business-typeActivities Activities Total

    2010 2009 2010 2009 2010 2009Revenue Bonds $214,773 $233,558 $855,030 $896,695 $1,069,803 $1,130,253Total $214,773 $233,558 $855,030 $896,695 $1,069,803 $1,130,253

    Standard and Poors Rating Group suggests that debt service should not exceed 10-15 percent ofappropriations. The fiscal year 2010 debt service was 6.5 percent, which is well within the suggestedguidelines.

    Additional information on the Countys long-term debt can be found in note V on pages 61-73.

    Economic Factors and Next Years Budget Rates

    The following were factors considered when next years budget was prepared:

    Lee County had a higher unemployment rate compared to the state and nation. Utilizing September2010, as a benchmark, Lee County had a 13.5 percent unemployment rate as compared to the Statewhich had an 12.0 percent unemployment rate, and the nation which had a 9.2 percentunemployment rate, as reported by the Florida Agency for Workforce Innovation, Labor MarketStatistics Center, Local Area Unemployment Statistics Program in cooperation with the U.S.Department of Labor, Bureau of Labor Statistics.

    There was no salary or pay for performance increases budgeted in the fiscal year 2010 budget. There was a decline in the property values from fiscal year 2010 to fiscal year 2010 of 14.2 percent

    based upon values determined by the Property Appraiser.

    Request for information

    This financial report is designed to provide the reader an overview of the County. Questions regarding anyinformation provided in this report should be directed to: Lee County Clerk of Courts, Finance and RecordsDepartment, 2115 Second Street, 3 rd Floor, Fort Myers, Florida, 33901, phone (239) 533-2100.

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    Basic Financial

    Statements

    15

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    Lee County, FloridaSTATEMENT OF NET ASSETS

    As of Se tember 30, 2010(amounts expressed in thousands)

    Cash and equity in pooled cash

    Internal balancesDue from other governments

    InventoryPrepaids

    ASSETS

    Receivables (net)

    Restricted assetsCapital assets:

    Non-depreciableDepreciable, net

    Total assets

    LIABILITIESContracts and accounts payableAccrued liabilities

    Refunds and rebates

    Due to other governmentsCustomer depositsUnearned revenues

    Liabilities payable from restricted assetsNoncurrent liabilities:

    Due within one yearDue in more than one year

    Total liabilities

    NET ASSETSInvested in capital assets,

    Restricted for:Capital projectsDebt service

    Renewal and replacementUnrestricted

    Total net assets

    Governmental Business-typeActivities Activities Total

    Primary Government

    $710,123

    8,74511,52516,6798,709

    740

    79,082

    795,821978,842

    Other assets 2,032

    28,6155,4946,0732,194

    14,092

    29,403324,532411,615

    net of related debt

    18,556

    612,235

    $2,200,683

    $270,092

    27,7931,623

    4871,0277,530

    186,860

    335,4661,532,9502,382,726

    19,2401,136

    890603

    1,2686,987

    68,151

    2,364894,327994,966

    39,901

    13,619

    1,010,013

    271,908

    $1,387,760

    $980,215

    36,53813,148

    09,1961,7679,562

    265,942

    1,131,2872,511,7924,995,024

    47,8556,6306,9632,7972,4806,987

    82,243

    31,7671,218,8591,406,581

    2,557,379

    52,31958,457

    13,619884,143

    $3,588,443

    2,612,298

    1,547,366

    52,319

    )(16,679

    1,212

    and investmentsInvestments 35,577 35,577

    S ecial revenue funds 22,526 22,526

    The notes to the financial statements are an integral part of this statement.

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    L e e C o u n t y , F l o r i d a

    S T A T E M E N T O F A C T I V I T I E S

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    t h e

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    Tourist

    Lee County DevelopmentGeneral Library MSTU Trust Fund

    ASSETSCash and equity in pooled cash and investments $235,985 $40,144 $26,986 $12,866Cash and cash equivalents

    with fiscal agentReceivables (net)

    Accounts 6,970 30 2Special assessmentsAccrued interest 219 41 33 13

    Due from other funds 2,701 169 682 3

    Due from other governments 5,402 961Inventory 6,017 26Advances 17,931 58,000

    Total assets 275,225 40,354 86,718 12,884

    LIABILITIES AND FUND BALANCESLiabilities:

    Contracts and accounts payable 11,142 600 466 751Accrued liabilities 4,566 156 268 25Due to other funds 2,377 46 1,724 45Due to other governments 4,934 77 135 12Deposits and overbids 2,450

    Unearned revenues 135 227Deferred revenuesAdvances 75,000Other 79

    Total liabilities 25,683 1,106 2,593 75,833Fund Balances:

    Nonspendable 23,948 58,026RestrictedCommitted 8,380 39,248 26,099Assigned 26,102Unassigned 191,112 (62,949)

    Total fund balances 249,542 39,248 84,125 (62,949)Total liabilities and fund balances $275,225 $40,354 $86,718 $12,884

    (continued)The notes to the financial statements are an integral part of this statement.

    Lee County, FloridaBALANCE SHEET

    GOVERNMENTAL FUNDSAs of September 30, 2010

    (amounts expressed in thousands)

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    Lee County, FloridaBALANCE SHEET

    GOVERNMENTAL FUNDSAs of September 30, 2010

    (amounts expressed in thousands)

    Other TotalCapital Governmental Governmental

    Improvement Funds Funds

    ASSETSCash and equity in pooled cash and investments $164,752 $189,049 $669,782Cash and cash equivalents

    with fiscal agent 23,322 23,322Receivables (net)

    Accounts 43 436 7,481Special assessments 6,603 6,603Accrued interest 167 1,034 1,507

    Due from other funds 347 3,966 7,868Due from other governments 539 6,513 13,415Inventory 2,407 8,450Advances 15,795 91,726

    Total assets 165,848 249,125 830,154

    LIABILITIES AND FUND BALANCESLiabilities:

    Contracts and accounts payable 3,149 12,813 28,921Accrued liabilities 9 740 5,764Due to other funds 80 2,182 6,454Due to other governments 167 859 6,184Deposits and overbids 4,650 7,100Unearned revenues 4 1,496 1,862Deferred revenues 6,316 6,316Advances 16,611 91,611Other 79

    Total liabilities 3,409 45,667 154,291Fund Balances:

    Nonspendable 18,150 100,124Restricted 176,552 176,552Committed 162,439 20,780 256,946Assigned 196 26,298Unassigned (12,220) 115,943

    Total fund balances 162,439 203,458 675,863

    Total liabilities and fund balances $165,848 $249,125 $830,154

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    Fund balances - total governmental funds $675,863Amounts reported for governmental activities in the statement of net assets are different because:

    Capital assets used in governmental activities are not financial resources andtherefore are not reported in the governmental funds.

    Non-depreciable governmental capital assets $793,526Depreciable governmental capital assets, net 967,798 1,761,324

    Other long-term assets are not available to pay for current period expenditures andtherefore, are deferred in the funds. 6,316

    Prepaid assets are not recorded in governmental funds under the modified accrual basisof accounting however they are recorded in the statement of net assets under fullaccrual accounting. 550

    Contracts and accounts payable in the statement of net assets includes GASB 49pollution remediation accruals for governmental funds which because of themodified accrual basis of accounting are not recorded in the governmental funds.These liabilities will be paid in fiscal year 2011. (551)

    Long-term liabilities, including bonds payable are not due and payable in the currentperiod and therefore are not reported in the governmental funds.

    Governmental bonds payable (216,243)Accrued interest payable (5,274)Accreted interest payable (10,221)Variable debt payable (195)Notes payable (22,722)Arbitrage payable (304)Other post employment benefits (58,753)Compensated absences (22,883) (336,595)

    Internal service funds are used by management to charge the cost of certain activitiesto the individual funds.

    Assets and liabilities of the internal service funds that are reported withgovernmental activities. 93,776

    Net assets of governmental activities $2,200,683

    The notes to the financial statements are an integral part of this statement.

    (amounts expressed in thousands)

    TO THE STATEMENT OF NET ASSETS

    Lee County, FloridaRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

    As of September 30, 2010

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    Lee County, FloridaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

    GOVERNMENTAL FUNDSFor the Year Ended September 30, 2010

    (amounts expressed in thousands)

    Lee TouristCounty Development

    General Library MSTU Trust Fund

    REVENUESTaxes $237,340 $15,658 $36,981 $22,75Licenses and permits 110 5,513n ergovernmen a , ,

    Charges for services 53,533 100 5,199Fines and forfeitures 182 409Impact feesSpecial assessmentsMiscellaneous 7,215 486 2,003 597

    Total revenues 362,052 17,871 50,620 23,353

    EXPENDITURESCurrent

    General government 96,935 472 8,993 1,025Public safety 193,456 9,070Physical environment 6,169 3,746Transportation 1,254Economic environment 13,585 14,792Human services 19,665 3,836Culture and recreation 12,757 24,302 12,015

    Capital outlayGeneral government 1,467 3Public safety 4,802 1Physical environment 55TransportationEconomic environment 9Human servicesCulture and recreation 379 1,058 64

    Debt servicePrincipal retirementInterest and fiscal charges 9Bond issuance costs

    Total expenditures 350,542 25,832 37,728 15,817Excess (deficiencies) of revenues

    over (under) expenditures 11,510 (7,961) 12,892 7,536

    OTHER FINANCING SOURCESAND (USES)

    Transfers in 6,261 154 264 5,193rans ers ou , , ,

    Debt issuanceTotal other financing sources and (uses) (40,166) 154 (26,312) (6,331)

    Net change in fund balances (28,656) (7,807) (13,420) 1,205Fund balances - beginning 278,198 47,055 97,545 (64,154Fund balances - ending $249,542 $39,248 $84,125 $(62,949

    The notes to the financial statements are an integral part of this statement. (continued)

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    Lee County, FloridaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

    GOVERNMENTAL FUNDSFor the Year Ended September 30, 2010

    (amounts expressed in thousands)

    Other TotalCapital Governmental Governmental

    Improvement Funds FundsREVENUES

    Taxes $31,371 $23,491 $367,597Licenses and permits 369 44 6,036n ergovernmen a , , ,

    Charges for services 112 16,616 75,560Fines and forfeitures 813 1,404Impact fees 3,123 3,123Special assessments 2,015 2,015Miscellaneous 4,353 6,607 21,261

    Total revenues 39,753 92,060 585,709

    EXPENDITURESCurrent

    General government 1,070 34,801 143,296Public safety 12,463 214,989Physical environment 670 1,160 11,745Transportation 40,550 41,804Economic environment 6,817 35,194Human services 2,643 26,144Culture and recreation 5,369 874 55,317

    Capital outlayGeneral government 40,047 1,243 42,760Public safety 1,711 6,514Physical environment 1,478 833 2,366Transportation 3,487 34,180 37,667Economic environment 822 831Human services 2 2Culture and recreation 32,970 5,835 40,306

    Debt servicePrincipal retirement 19,365 19,365Interest and fiscal charges 10,818 10,827Bond issuance costs 297 297

    Total expenditures 85,091 174,414 689,424Excess (deficiencies) of revenues

    over (under) expenditures (45,338) (82,354) (103,715)

    OTHER FINANCING SOURCESAND (USES)Transfers in 9,184 110,107 131,163

    rans ers ou , , ,Debt issuance 18,798 18,798

    Total other financing sources and (uses) 4,714 76,264 8,323Net change in fund balances (40,624) (6,090) (95,392)Fund balances - beginning 203,063 209,548 771,255Fund balances - ending $162,439 $203,458 $675,863

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    Net change in fund balances - total governmental funds: ($95,392)Amounts reported for governmental activities in the statement of activities are different because:

    Governmental funds report capital outlays as expenditures. However, in the statementof activities the cost of those assets is depreciated/amortized over theirestimated useful lives.

    Expenditures for capital assets $130,446Less current year depreciation and amortization (48,950) 81,496

    The net effect of various miscellaneous transactions involving capital and intangibleassets (i.e., disposals, transfers, donations) is to decrease net assets. (3,755)

    Prepaid expenses are not recorded in governmental funds under the modified accrual basisof accounting however they are recorded in the statement of activities under full

    accrual accounting. (1,27Revenues that were previously reported in the statement of activities and are recognized asrevenue in the funds. 185

    Debt proceeds provide current financial resources for governmental funds, but issuing debtincreases long-term liabilities in the statement of net assets. Repayment of debt principalis an expenditure in the governmental funds, but the repayment reduces long-termliabilities in the statement of net assets. Also, governmental funds report the effect ofissuance costs, premiums and similar items when debt is first issued. These amounts aredeferred and amortized in the statement of activities.

    Long- term debt proceeds (18,798)Bond issuance costs 297

    Principal payments 19,365 864Some 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.OPEB (24,707)GASB 49 pollution remediation liability (551)Change in arbitrage payable (11)Change in compensated absences (3) (25,272

    Interest on long-term debt in the statement of activities is recognized as the interest accrues,regardless of when it is due. In the governmental funds interest is recognized as anexpenditure when it is due. Issue costs, premiums, and similar items are deferred andamortized in the statement of activities.

    Accrued interest on bonds 310Accreted interest on capital appreciation bonds (909)Amortization of bond issue costs (13) (612

    Internal service funds are used by management to charge the costs of certain activities toindividual funds.

    The net revenue of the internal service funds isreported with governmental activities. 3,676

    Change in net assets of governmental activities