PASCO COUNTY, FLORIDA - flauditor.gov rpts/2016 pasco county.pdf · Pasco County, Florida . 37918...

COMPREHENSIVE ANNUAL FINANCIAL REPORT OF PASCO COUNTY, FLORIDA FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 Prepared in the Office of Honorable Paula S. O’Neil, Ph.D., CPM Clerk of Circuit Court and County Comptroller

Chief Financial Officer Nichole Alvarez-Sowles, Esq., Chief Operations Officer Chief Administrative Officer Manny Long, M.S. Director of Finance

PASCO COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 BOARD OF COUNTY COMMISSIONERS

Honorable Kathryn Starkey, Chairman Honorable Mike Moore, Vice Chairman

Honorable Jack Mariano Honorable Ted Schrader Honorable Mike Wells

CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER

CHIEF FINANCIAL OFFICER Honorable Paula S. O’Neil, Ph.D., CPM COUNTY ADMINISTRATOR Michele L. Baker

TABLE OF CONTENTS

PAGEINTRODUCTORY SECTION (UNAUDITED)

A-1A-10

ORGANIZATIONAL CHART A-11

FINANCIAL SECTION

B-1C-1

D-1D-3

D-5

to the Statement of Net Position D-6

Fund Balances - Governmental Funds D-7

In Fund Balances - Governmental Funds to the Statement of Activities D-8

Fund Balances – Budget and Actual – General Fund - Budget Basis D-9D-11

Net Position – Proprietary Funds D-13D-14D-16E-1

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)F-1F-2F-3

F-4F-5

F-6

PASCO COUNTY, FLORIDACOMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

TABLE OF CONTENTS

Statement of Cash Flows – Proprietary Funds

LETTER OF TRANSMITTAL

Statement of Net PositionStatement of Activities

Statement of Net Position – Proprietary Funds

Florida Retirement System Retiree Health Insurance Subsidy ProgramContribution Requirements - Florida Retirement System Retiree Health Insurance Subsidy Program

Schedule of Funding Progess - Other Postemployment BenefitsSchedule of Employer Contributions - Other Postemployment BenefitsSchedule of the County's Proportionate Share of the Net Pension Liability and Related Ratios

GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

BASIC FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT

Statement of Revenues, Expenses, and Changes in

Reconciliation of the Statement of Revenues, Expenditures, and Changes

Statement of Revenues, Expenditures, and Changes in

MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

Government-wide Financial Statements:

Reconciliation of the Balance Sheet – Governmental Funds

Fund Financial Statements:Balance Sheet - Governmental Funds

Statement of Revenues, Expenditures, and Changes in

Notes to Financial Statements

Contribution Requirements - Florida Retirement System Pension PlanSchedule of the County's Proportionate Share of the Net Pension Liability and Related Ratios

Statement of Fiduciary Net Position – Agency Funds

Florida Retirement System Pension Plan

i

PAGE

G-1

G-2Penny for Pasco Fund - Statement of Revenues, Expenditures, and Changes in

Fund Balance - Budget and Actual G-3G-4

G-20

G-36G-37G-38G-39G-40G-41G-42G-43G-44G-45G-46G-47G-48G-49

Grants Fund G-50G-51G-52G-53G-54G-55G-56G-57G-58G-59G-60G-61

School Impact Fees Fund G-62G-63G-64G-65

Lacoochee/Trilby Redevelopment Fund G-66G-67G-68G-69G-70G-71G-72G-73G-74

Fox Ridge MSBU Fund G-75G-76Tree Fund

Special Assessment Fund

East Pasco Law Library Fund

Quail Hollow Village MSBU Fund

Road and Bridge FundLaw Enforcement Fund

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Municipal Services Fund

Tourist Development Tax Fund

Combining Balance Sheet – Nonmajor Governmental Funds

TABLE OF CONTENTS (CONTINUED)

Combining Schedule of Revenues, Expenditures, and Changes in FundBalances – General Fund

Combining Balance Sheet – General Fund

Local Option Gas Tax FundBuilding Inspections and Permitting Fund

Intergovernmental Radio Communication Fund

Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budgeted and Actual:

Combining Statement of Revenues, Expenditures, and Changes inFund Balances – Nonmajor Governmental Funds

West Pasco Law Library Fund

Department of HUD FundHome Program Fund

Library Cooperative Grant Fund

Transportation Impact Fee Fund – CentralTransportation Impact Fee Fund – East

Court Facilities Improvement 939.15 F.S. Fund

Park Impact Fee Fund – East

Transportation Impact Fee Fund – West

Stormwater Management Fund

Florida Boating and Improvement Fund

Public Transportation FundDepartment of Children and Families Fund

Municipal Fire Service Unit Fund

Affordable Housing FundWilliamsburg West MSTU Fund911 Emergency Services Fund

US 19 Concurrency Fund

Alcohol and Other Drug Abuse Fund

Library Impact Fee FundHurricane Mitigation Fee Fund

Teen Court Fund

Combat Impact Fee FundPark Impact Fee Fund – WestPark Impact Fee Fund – Central

Rescue Impact Fee Fund

ii

PAGE

G-77G-78

Guaranteed Entitlement Refunding Revenue Bonds, Series 2013 Fund G-79Half-Cent Sales Tax Revenue Bonds, Series 2013 Fund G-80Guaranteed Entitlement Loan, Series 2014 Fund G-81Public Safety Note, Series 2016 Fund G-82Board Capital Improvements Fund G-83Mobility Fee District 1 - West G-84Mobility Fee District 2 - Central G-85Mobility Fee District 3 - East G-86VOPH Transportation Fund G-87Tommytown Capital Fund G-88

G-89Capital Projects Fund G-90

G-91

G-92G-93G-95G-96

H-1H-2H-4H-5

Direct and Overlapping Property Tax Rates (Millage Rate) – Last Ten Fiscal Years H-6Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years H-7Principal Taxpayers – Current Year and Ten Years Ago H-8Property Tax Levies and Collections – Last Ten Fiscal Years H-9Outstanding Debt by Type – Last Ten Fiscal Years H-10

H-11Schedules of General Government Bond Coverage – Last Ten Fiscal Years (or as indicated):

H-12H-12H-12H-13H-13

Schedule of Water and Sewer Unit Bond Coverage H-14Schedule of Solid Waste Disposal and Resource Recovery System Bond Coverage H-15

H-16H-17H-18H-19H-20


Fund Balances, Governmental Funds – Last Ten Fiscal Years

Gas Tax Refunding Revenue BondsPublic Improvement Refunding Revenue Bonds

Net Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years

Combining Statement of Fiduciary Net Position – Agency FundsCombining Statement of Changes in Assets and Liabilities – Agency Funds

STATISTICAL SECTION (UNAUDITED)

Net Position – Internal Service Funds

Half-Cent Sales Tax Revenue Bonds

Refunding Improvement Revenue Bonds

Combining Statement of Cash Flows – Internal Service Funds

Employment Statistics by Function – Last Ten YearsOperating Indicators by Function/Program – Last Ten Fiscal YearsCapital Assets and Infrastructure Statistics by Function/Program – Last Ten Fiscal Years

Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budgeted and Actual (Continued):

Guaranteed Entitlement Refunding Revenue Bonds

Demographic and Economic Information – Last Ten YearsPrincipal Employers – Current and Ten Years Ago

Combining Statement of Revenues, Expenses, and Changes in Fund

Direct and Overlapping Governmental Activities Debt as of September 30, 2016

Changes in Net Position – Last Ten Fiscal Years

Half-Cent Sales Tax Construction Fund

Combining Statement of Net Position – Internal Service Funds

Net Position by Component – Last Ten Fiscal Years

HUD Section 108 Note, Series 2006 FundLighting Districts Fund

iii

I-1


and First Union National Bank of Florida (“U.S. Bank”)as Trustee (Bond Compliance Disclosure)

in Compliance With Section 714(3), Indenture of Trust Between Pasco County, FloridaSchedules of Receipts, Disbursements and Balances - All Funds and Accounts,

iv

INTRODUCTORY SECTION

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August 7, 2017

The Honorable Mike Moore, Chairman Board of County Commissioners Pasco County, Florida 37918 Meridian Avenue Dade City, FL 33525 Dear Chairman Moore: The Comprehensive Annual Financial Report (CAFR) of Pasco County, Florida (the "County") for the fiscal year ended September 30, 2016 is submitted herewith. The Financial Services Department, within the Office of the Clerk of Circuit Court and County Comptroller, prepared this report. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data, as presented, are accurate in all material aspects and are presented in a manner designed to present fairly the financial position and results of operations of the various funds. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. In accordance with Florida Statutes that require each county to have an annual financial audit of its accounts and records by an independent certified public accountant, the firm of KPMG LLP has audited Pasco County’s financial statements. The goal of the independent audit was to obtain reasonable assurance about whether the financial statements are free of material misstatement. The independent audit included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also included assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. KPMG LLP concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that Pasco County, Florida’s financial statements for the fiscal year ended September 30, 2016, are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles (GAAP). KPMG LLP’s independent auditors’ report is presented as the first component of the Financial Section of the CAFR.

ORGANIZATION AND CONTENT OF THE CAFR

The Comprehensive Annual Financial Report complies with the financial reporting model as required by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments.

Phone: (727) 847-8199 Fax: (727) 847-8121

www.pascoclerk.com

[email protected]

Excellence…Always

Office Locations:

Robert D. Sumner Judicial Center 38053 Live Oak Avenue, Suite 205

Dade City, FL 33523-3894

West Pasco Judicial Center 7530 Little Road, Suite 106 New Port Richey, FL 34654

East Pasco Government Center 14236 Sixth Street, Suite 201

Dade City, FL 33523

West Pasco Government Center 8731 Citizens Drive, Suite 220

New Port Richey, FL 34654

East Pasco Records Center 38319 McDonald Street

Dade City, FL 33525

West Pasco Records Center Jack Albert Records Retention Center

8902 Government Drive New Port Richey, FL 34654

Mailing Addresses:

Dade City: 38053 Live Oak Avenue

Dade City, FL 33523-3894

New Port Richey: P.O. Box 338

New Port Richey, FL 34656-0338

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The CAFR is organized into three sections:

Introductory Section This section is intended to familiarize the reader with the organizational structure of the County, the nature and scope of the services it provides, and the specifics of its legal environment. It also provides economic and major initiative highlights.

Financial Section This section includes the audited Basic Financial Statements, notes to the financial statements, and supporting statements and schedules necessary to fairly present the financial position and the results of operations of the County in conformity with U.S. generally accepted accounting principles, as well as the independent auditors’ report on the Basic Financial Statements. Also included in this section are the narrative introduction, overview, and analysis found in Management’s Discussion and Analysis (MD&A). MD&A is intended to disclose any known significant events or decisions that affect, or may affect, the financial condition of the County.

Statistical Section

This section includes selected financial and demographic information, generally presented on a multi-year basis.

THE REPORTING ENTITY AND ITS SERVICES

Pasco County is a Non-Charter County established under the Constitution and the laws of the State of Florida. This Comprehensive Annual Financial Report is a County-wide report which discloses the results of operations for the following entities: the Board of County Commissioners (the “Board”); the Clerk of Circuit Court and County Comptroller (the “Clerk and Comptroller”); the Property Appraiser; the Sheriff; the Supervisor of Elections; and the Tax Collector. The Board of County Commissioners is the legislative body for Pasco County and, as such, it budgets and provides all funding used by the Board's departments and the separate Constitutional Officers, with the exception of certain fees and service charges collected by the Clerk and Comptroller, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector. Under the direction of the Clerk and Comptroller, the Financial Services Department maintains separate accounting systems for the Board of County Commissioners and the Clerk and Comptroller operations. The Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector maintain their own accounting systems. However, for purposes of this Comprehensive Annual Financial Report, the operations of the County as a whole, including those of the Constitutional Officers, have been presented. The process of evaluating potential component units involved the application of criteria set forth in Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39, Determining Whether Certain Organizations Are Component Units, and GASB Statement No. 61, The Financial Reporting Entity: Omnibus. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The definition of the reporting entity is based primarily on the notion of financial accountability. The primary government is financially accountable for the organizations that make up its legal entity - the Board of County Commissioners and the Constitutional Officers. The primary government is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and, either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government.

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Based on the application of the aforementioned criteria, the Pasco County Housing Finance Authority and the J. “Ben” Harrill Villages of Pasadena Hills Stewardship District were determined to be discretely presented component units properly included in the County's reporting entity. Pasco County provides a full range of services. These include public safety (law enforcement and fire), culture and recreation, health and social services, streets and highways, public improvements, planning and zoning, water and sewer, resource recovery, as well as general and administrative services. ECONOMIC CONDITION AND OUTLOOK Pasco County is comprised of three distinct demographic areas:

The largely rural, agricultural eastside is the location of the County Seat in Dade City.

The heavily developed, residential west side is home to the Government and Judicial Centers in New Port Richey.

The developing central part of the County contains growing office space and a correctional facility in

Land O’Lakes. In general, the Tampa Bay area was named one of the fastest growing areas in the country. Pasco

County is the only government in the area that has a portion (20% of the county’s 45% portion) of the Local Government Infrastructure Surtax (additional 1% sales tax) dedicated to economic development.

Resident income levels have increased since 2000 – Median Household Income levels are now $44,518

versus $32,969 in 2000. The population of Pasco County increased from 487,588 in 2015 to 495,868 in 2016, the sixth year in a

row of growth. The County’s population is projected to grow 9.0% by the year 2020.

438

465 469 474

479 488

496

410

420

430

440

450

460

470

480

490

500

2010 2011 2012 2013 2014 2015 2016

Pasco County Population (in thousands)

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The County’s unemployment rate as of September 30, 2016 was 5.1%, a drop of 0.9% from the September 30, 2015 rate of 6.0%.

The number of foreclosures has declined dramatically as evidenced by the number of new filings falling

from a high of 837 in February 2010 to 96 in October 2016. This is the lowest amount of filings in the last 6 years. The monthly average of 149 new filings a month is also the lowest it has been over the past 6 years.

The median value of a single-family home in Pasco County increased from $108,000 in September of

2012 to $155,000 in September of 2016. In the past year alone the median value of a single-family home has increased by 13.6% with an additional 4.1% increase expected by the end of 2017.

The County’s 2016 Florida Price Level Index of 98.43 calculated by the Director of Economic Analysis at

Florida Polytechnic University, under the direction of the Florida Legislature, ranks Pasco County 20th in the State. The County was ranked 21st in 2015. The index indicates, in general, that Pasco County’s cost of living compares favorably with the Florida State average of 100.00.

Total Taxable Assessed Values have increased each year since 2013 following five years of decline. In

fact, TTAV increased by more than 12% since 2013 with the value of new construction accounting for a significant portion of that increase. It is projected that Taxable Value of new construction will grow from a low of $243 million, in 2012, to $687 million in 2017.

$23,127,467

$20,727,431

$20,301,342

$19,239,063

$20,261,141

$21,433,772

$22,522,061

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

2010 2011 2012 2013 2014 2015 2016

Total Taxable Assessed Value (in thousands)

13.2% 11.7%

9.7%

7.8% 6.7%

6.0% 5.1%

11.8% 10.4%

8.6% 6.9%

6.3% 5.2%

4.9%

9.2% 9.0% 7.6% 7.5%

6.3% 5.0% 4.9%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2010 2011 2012 2013 2014 2015 2016

Unemployment Rate

Pasco CountyFloridaNational

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The level of outstanding delinquent property taxes rose to a high of $1,996,617 in 2009. In 2016 the amount of delinquent taxes was $396,692, reaching the lowest point since 2008.

The County's Economic Development Incentive Ordinance, adopted in 1995, is used to attract value-

added jobs. Incentives are available to companies that create jobs, construct facilities, and pay wages above stated minimum standards. The incentives are in the form of reduced transportation, water, and sewer impact fees.

Mettler-Toledo announced its planned relocation to Pasco County in September 2016. The company

plans to build a 27,000 square foot manufacturing facility along S.R. 54 near the Suncoast Parkway and bring 775 jobs to Pasco.

The County executed Economic Incentive Agreements creating an additional 228 jobs: Nicopure Labs

LLC (60); GIC Engineering Inc. (11); Crestmark Pharmacy Services (26); Trxade Group (54); and Otho Technologies Inc. (77).

There is significant growth in the medical sector with expansions at Trinity Medical Center and Florida

Hospital.

To help fuel Pasco’s employers, Pasco County authorized $400,000 in funding for the AmSkills Industry Certification Training Center for a German-style dual apprenticeship program for Pasco’s manufacturers and local high school students.

A Cooperative Funding Agreement was executed with the PascoEDC providing them $2,983,000 in

funding from the Jobs and Economic Opportunities Trust Fund (Penny for Pasco Fund) for job creation and economic development projects.

Pasco County conducted its first economic development trip to Gemersheim Germany.

The County has joined the Tampa Bay Export Alliance to bring more international investment to Pasco

County.

The Office of Economic Growth secured $694,000 in grant funds from the United States Environmental

-

500

1,000

1,500

2,000

2009 2010 2011 2012 2013 2014 2015 2016

Outstanding Delinquent Taxes at September 30, 2016 (in thousands)

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Protection Agency to perform environmental assessments and clean up contamination in Lacoochee’ s Stanley Park.

Raymond James Financial received permission from the U.S. Army Corps of Engineers to build a

satellite campus in Wesley Chapel. The company has announced it will build two to four office towers on the Wesley Chapel site. The company has announced it could hire as many as 750 new employees.

MAJOR INITIATIVES The following capital projects give only a partial listing of major improvements recently completed or currently under construction by the County:

Extended Interlaken Road from east of Community Drive to Gunn Highway (CR 587) and resulted in

the construction of a new 2-lane roadway with a 5’ sidewalk, an 8’ multi-use path and a traffic signal at Interlaken Road and Gunn Highway (CR 587). This project was jointly funded with the Florida Department of Transportation through the School Transportation Infrastructure Program.

Completed the connection of Chancey Road between Double Branch Elementary School and Foxwood Boulevard. This was a new 2-lane roadway that extended 230’ from its terminus adjacent to the school to the Foxwood Subdivision and added .14 miles of new 5’ sidewalk. The project was funded by Penny for Pasco.

Widened Ridge Road between Broad Street and Moon Lake Road from 2-lanes to 4-lanes for a

distance of 3.0 miles, and added a new 6’ sidewalk and an 8’ multi-use path. This project was jointly funded with the Florida Department of Transportation through the County Incentive Grant Program (CIGP) and the Transportation Regional Incentive Program (TRIP).

Completed several sidewalk projects along County roads including: 1) Milestretch Drive from US 19 to

Arcadia, 2) Moog Road from Springfield Drive to US 19, 3) Rowan Road from Massachusetts Avenue to Ridge Road, and 4) Trouble Creek Road from Springfield Drive to Eagle Point Park. These projects received funding from the Florida Department of Transportation and were administered under the Local Agency Planning (LAP) program.

Added 10.8 miles of new sidewalks and/or multi-use paths to the County’s transportation network,

exceeding the County’s Strategic Goal of adding 8 miles of sidewalk, multi-use path and/or trails annually.

Completed the re-paving of Trinity Boulevard.

Completed Phase II of the Lacoochee paving project.

Replaced two 96” culverts under Majestic Boulevard and replaced the Jarvis Street culvert.

Started the Anclote River Debris Removal project in cooperation with the Natural Resources

Conservation Service.

Conducted $3,500,000 in paving of roads damaged by spring floods and completed an additional $1,800,000 in temporary repairs to other storm damaged roads.

Acquired the Magnolia Valley Golf Course for use in flood control. Replaced the large electric flood

control pump at the golf course.

Purchased the Timber Oaks Golf Course for use in flood control by converting it into multiple Stormwater retention areas.

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Completed the Parks Master Plan and adopted the Ecological Corridors Ordinance.

Acquired an additional 744 acres of environmentally sensitive land, through the Environmental Lands

and Management Program (ELAMP), bringing the total to 4,121 acres since the inception of the program.

Pasco County Public Transportation implemented service improvements on the S.R. 54 Connector route and completed connector service to Hernando County Public Transportation.

Implemented Phase II of Accela which is an online permitting and plan review system.

Established a Strategic Code Compliance Team to focus its efforts on the Harbors District and the

creation of a Commercial Minimum Standards Team to enforce codes along all commercial corridors.

Completed its migration from the legacy financial system (i.e., FASBE) to a new ERP system (i.e., Tyler Munis).

Replaced the analog emergency dispatch equipment with state-of-the-art digital equipment known as

P25. The project consists of upgrading the infrastructure and radios to P25 Phase II which consisted of digitizing the system, allowing interoperability with neighboring radio systems, and building ten transmission towers throughout the County.

Completed construction of the largest reclaimed water reservoir in the world and started construction of

236 acres of wetland construction with the Central Pasco County Beneficial Water Reuse Project.

The Boyette Reclaimed Water Reservoir was completed and went into operation on July 25, 2016. At 500 million gallons it is the largest of its kind in the nation.

FINANCIAL INFORMATION

The County's accounting records for general governmental operations are maintained on the modified accrual basis, with revenues recorded when measurable and available, and expenditures recorded when the services or goods are received and the liabilities are incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent that they have matured. Accounting records for the County's enterprise and internal service operations are maintained on the accrual basis, with the revenues recorded when earned and expenses recorded when the liabilities are incurred. Procedures have been developed for financial reporting adjustments and reconciliation data in order to apply the accrual method of accounting across all funds in accordance with GASB Statement No. 34.

In developing the County's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding:

the safeguarding of assets against loss from unauthorized use or disposition; and

the reliability of financial records for preparing financial statements and maintaining

accountability for assets.

The concept of reasonable assurance recognizes that: the cost of a control should not exceed the benefits likely to be derived; and

the evaluation of costs and benefits requires estimates and judgments by management.

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All internal control evaluations occur within the above framework. We believe that the internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Budgetary control is maintained at the sub-function level by encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders, which would result in an overrun of sub-function balances, are not released until additional appropriations are made available. Open encumbrances at September 30, 2016 are reported in the assigned classification of fund balance.

Capital Assets

The capital assets of the County are used in the performance of governmental and business-type activities. Under Florida Statutes, only assets that cost $1,000 or more, and which have a useful life of one year or more, are considered capital assets. In accordance with U.S. generally accepted accounting principles, capital assets in Pasco County are recorded at either historical (original) cost, or estimated historical cost if original cost data is not available, except for contributed property which is recorded at its estimated fair value at the date of contribution. In accordance with GASB Statement No. 34, the County has recorded and reported all infrastructure acquired since 1980. Infrastructure includes streets, roads, sidewalks, and bridges.

Independent Audit

Section 218.39 of the Florida Statutes requires an independent certified public accountant's financial audit of counties in the State. Pasco County has complied with this requirement, and the report of our independent auditor, KPMG LLP, has been included in this report. As a recipient of federal and state assistance, the County is responsible for maintaining an adequate internal control framework to ensure compliance with applicable laws and regulations related to these assistance programs. The independent certified public accountant issues a separate report on compliance and internal control over compliance in the annual Single Audit, which covers major federal grant programs, and in the annual Florida Single Audit, which covers major state grant programs. The federal and state Single Audits were designed to meet the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as Section 215.97, Florida Statutes, respectively. The independent certified public accountants’ Single Audit Report is issued separately.

Reporting Achievement

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Pasco County, Florida for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2015. This was the thirty-third consecutive year that Pasco County has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

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Acknowledgements

We would like to express our appreciation to the teammates of the Financial Services Department, who so greatly contributed to the preparation of this report. In particular, we acknowledge the hard work and professionalism of Matthew Lazar, and Brenda Blake, Managers of Financial Services and CliftonLarsonAllen LLP for their assistance in the preparation of the CAFR document.

We would also like to offer our gratitude to the Board of County Commissioners and its staff, and Pasco County's Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector, to name a few, who have been instrumental in the completion of this report.

We want to further extend our thanks to all of the departments and agencies outside the County that contributed financial information for use in this report. Sincerely, Paula S. O’Neil, Ph.D., CPM Nichole Alvarez-Sowles, Esq. Clerk of Circuit Court and County Comptroller Chief Operations Officer Manny Long, M.S. Director of Finance

FINANCIAL SECTION

Independent Auditors' Report

Management’s Discussion and Analysis (Unaudited)

Basic Financial Statements

Government-Wide Financial Statements Fund Financial Statements


Required Supplementary Information

Combining and Individual Fund Statements and Schedules

KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

KPMG LLPSuite 1700100 North Tampa StreetTampa, FL 33602-5145

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Independent Auditors’ Report

Distinguished Members of the Board of County Commissioners Pasco County, Florida:

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Pasco County, Florida (the County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Pasco County, Florida, as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows

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thereof, and the general fund budgetary comparison for the year then ended in accordance with U.S. generally accepted accounting principles.

Emphasis of Matter

As discuss in note 1 P to the financial statements, the County adopted the provisions of Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles require that the management’s discussion and analysis, schedule of funding-progress-other postemployment benefits, schedule of employer contributions-other postemployment benefits, schedules of the County’s proportionate share of the net pension liability and related ratios, and contribution requirements for the Florida Retirement System Pension Plan and Florida Retirement System Retiree Health Insurance Subsidy Program on pages C-1 through C-14 and F-1 through F-6, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Pasco County, Florida’s basic financial statements. The combining and individual fund financial statements and schedules, the introductory and statistical sections, and the schedules of receipts, disbursements and balances in compliance with Section 714(3) of the indenture of trust are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections and the schedules of receipts, disbursements and balances in compliance with Section 714(3) of the indenture of trust have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated August 7, 2017 on our consideration of Pasco County, Florida’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pasco County, Florida’s internal control over financial reporting and compliance.

August 7, 2017 Certified Public Accountants

MANAGEMENT’S DISCUSSION AND ANALYSIS Provides an objective analysis of the County’s financial activities.

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MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

Management’s discussion and analysis provides an overview of the financial activities of Pasco County, Florida (the “County”) for the fiscal year ended September 30, 2016. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Letter of Transmittal on page A-1, and in the County’s financial statements that begin on page D-1. Financial Highlights At September 30, 2016, the County’s total assets and deferred outflows exceeded its total liabilities

and deferred inflows by $1.859 billion (net position), an increase of $67.0 million over the prior year. At September 30, 2016, governmental funds reported a combined ending fund balance total of

$482.06 million, an increase of $48.37 million (or 11.15%) over the prior year. Of the total, $66.95 million is available for spending at the County’s discretion (assigned or unassigned fund balance), subject to the intent of the Board of County Commissioners or the Office of the Clerk & Comptroller, to which the authority to assign amounts for specific purposes has been delegated by the Board.

At September 30, 2016, the fund balance of the County’s General Fund was $72.2 million,

representing an increase of $11.8 million (or 19.53%) from the prior year. $66.9 million of the fund balance total was assigned or unassigned.

The County’s total long-term liabilities increased by $241.8 million during the fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Pasco County’s Basic Financial Statements. The Basic Financial Statements include three components: government-wide financial statements, fund financial statements, and notes to the financial statements. This comprehensive annual financial report also contains other statements and schedules which are presented as supplemental information. Government-wide Financial Statements The government-wide financial statements provide a broad overview of Pasco County’s finances, using the accrual basis of accounting that is similar to the accounting method used by private-sector business. They are comprised of the statement of net position and the statement of activities. The statement of net position presents information on the assets and deferred outflows and liabilities and deferred inflows of the County as a whole. The difference between assets and deferred outflows and liabilities and deferred inflows is reported as net position. Net position is reported in three categories: net investment in capital assets; restricted; and unrestricted. The assets, deferred outflows, liabilities, deferred inflows, and net position of governmental activities, are reported separately from those of business-type activities. The governmental activities of the County include general government, public safety, physical environment, transportation, economic environment, human services, culture and recreation, and court-related functions. The business-type activities of the County are the Water and Sewer Unit and the Solid Waste Disposal and Resource Recovery System. In the government-wide financial statements, emphasis is placed on the position of governmental activities and business-type activities and on the change in net position. Over time, changes in net position may serve as an indicator as to whether the financial position of the County is improving or deteriorating. The statement of activities presents information on all revenues and expenses of the County and shows how the County’s net position changed during the fiscal year. Expenses are reported by major function. Program revenues related to those functions are reported, resulting in the net cost of all functions provided by the County. Changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Therefore, some of the revenues and

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expenses reported in the statement of activities will only result in cash flows in future periods. For example, certain uncollected taxes are shown as revenues although cash receipts will occur in the following year. Also, an increase in earned, unused vacation leave is recorded as an expense although the related cash outflows will occur in the future. Both of the government-wide financial statements distinguish between activities of the County that are supported primarily by program revenues, taxes, and intergovernmental revenues (governmental activities) and activities that recover all or most of their costs through user fees and charges (business-type activities). Within the government-wide financial statements, all assets of the County, including land, intangibles, buildings, improvements other than buildings, equipment, construction in process, and infrastructure, are reported in the statement of net position. All liabilities, including the principal outstanding on bonds, and future employment benefits obligated but not yet paid by the County, are reported. The statement of activities includes depreciation on all long lived assets of the County, but transactions between the different functions of the County have been eliminated in order to avoid “doubling up” the revenues and expenses. The government-wide financial statements include not only the County itself (known as the primary government), but also a legally separate entity, the Pasco County Housing Finance Authority, for which the County is financially accountable. The financial information for this component unit is reported separately from the financial information of the primary government. To obtain separately issued financial statements of this discretely presented component unit, see Note 1, Summary of Significant Accounting Policies, Reporting Entity, in the Notes to Financial Statements. The J. “Ben” Harrill Villages of Pasadena Hills Stewardship District, the other discretely presented component unit, had no financial activities during the year. 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. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements, including those involving legislative, administrative and contractual obligations. The fund financial statements provide a picture of each of the major funds of the County as well as a column that groups all nonmajor funds. All of the County’s funds can be divided into three categories: governmental, proprietary, and fiduciary. The governmental fund financial statements provide information on the current assets and liabilities of the funds, as well as changes in current financial resources (revenues and expenditures) and current available resources. In the case of governmental activities, outlays for long-lived assets are reported as expenditures and long-term liabilities, such as bonds, are not included in the fund financial statements. The proprietary fund financial statements provide information on all assets and liabilities of the funds, as well as changes in economic resources (revenues and expenses), and total economic resources. The fiduciary fund statement provides information concerning assets held in an agency capacity by the County on behalf of others. Notes to the Financial Statements The notes provide additional information that is essential for a full understanding of the data provided in both the government-wide financial and fund financial statements. The notes begin on page E-1 of this report. Reconciliations – The Link between Government-Wide and Fund Financial Statements The government-wide financial statements and the fund financial statements provide different pictures of the County. In order to link the fund financial statements to the government-wide financial statements, reconciliations are provided from the fund financial statements to the government-wide financial statements.

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The reconciliations describe the relationship (or differences) between governmental activities (reported in the statement of net position and the statement of activities --- in the government-wide financial statements) and governmental funds (reported in the fund financial statements). These reconciliations are located after the balance sheet – governmental funds and after the statement of revenues, expenditures, and changes in fund balances – governmental funds, in the Basic Financial Statements. The Funds of the County Governmental Funds Most of the County’s basic services are reported in governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Consequently, governmental fund financial statements provide a detailed focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. This information may be useful in evaluating a government’s near-term financing requirements. Funds that are most significant in terms of revenues, expenditures, assets or liabilities are identified as major funds in the Basic Financial Statements. In addition, budget and actual comparison statements are presented in the Basic Financial Statements for the General Fund and Penny for Pasco Fund, the County’s two major funds for 2016. The County’s nonmajor funds, and budget and actual comparison schedules for any nonmajor funds with legally adopted annual budgets, are presented as supplemental information in the Combining and Individual Fund Statements and Schedules section of this report. Proprietary Funds The County maintains two types of proprietary funds. The first type, enterprise funds, is used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its Water and Sewer Unit and its Solid Waste Disposal and Resource Recovery System. Both of these operations are considered to be major funds of the County. The second type of proprietary funds, internal service funds, is used to account for the Equipment Service, County Insurance, County Self Insurance, Clerk and Comptroller’s Insurance, and the Sheriff’s Health Insurance. Internal service funds are used to accumulate and allocate costs internally among the County’s various functions. As these operations predominantly benefit governmental rather than business-type functions, they are included within governmental activities in the government-wide financial statements. The five internal service funds are combined into a single column in the proprietary fund financial statements. The proprietary fund financial statements can be found in the Basic Financial Statements. Individual fund data for the internal service funds are provided in the Combining and Individual Fund Statements and Schedules section of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Agency funds are the only type of fiduciary fund used by the County in fiscal year 2016. These agency funds are not included in the government-wide financial statements because the resources of these funds are not available to support the County’s own programs. However, the separate statement of fiduciary net position – agency funds is included in the Basic Financial Statements, since the County has custodial responsibility. Additionally, the individual agency funds are included in the Combining and Individual Fund Statements and Schedules section of this report.

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Other Information The combining statements for the nonmajor funds, internal service funds, agency funds, as well as individual nonmajor governmental fund budget and actual comparison schedules, are found in the Combining and Individual Fund Statements and Schedules section of this report beginning on G-1. Also, see the Statistical Section beginning on H-1 for additional financial, demographic and economic information about the County. Government-Wide Financial Analysis In accordance with the requirements of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments (GASBS No. 34), the government-wide financial statements have been prepared using accrual accounting for all of the County’s activities. Accrual accounting measures not just current assets and liabilities but also long-term assets and liabilities, such as capital assets and bond issue debt. The use of accrual accounting results in the reporting of all revenues and all costs of providing services each year, not just those received or paid in the current year or soon after year-end, as does the modified accrual basis accounting. As noted earlier, net position may serve, over time, as a useful gauge of a government’s financial position. At September 30, 2016, the County’s total net position, or total assets and deferred outflows, less total liabilities and deferred inflows, was $1.859 billion. The largest portion of the County’s net position, $1.28 billion (or 68.95%), is reflected in its investment in capital assets (e.g., land, buildings, equipment, and infrastructure), less any related debt outstanding that was used to acquire those assets. Since Pasco County uses these capital assets to provide services to its citizens, the net assets represented by “net investment in capital assets” are not available for future spending. Although the County’s investment in capital assets is reported net of related debt, 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. Pasco County’s net position includes restricted net position of $483.5 million (or 26.01%) that are subject to external restrictions on how they may be used, such as those imposed by debt covenants, grantors, laws and regulations. The balance in net position, $93.6 million (or 5.04%), is unrestricted and may be used to meet the County’s ongoing obligations to citizens and creditors.

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Table of Net Position and Table of Changes in Net Position As shown in the table of Net Position below, the County reported positive Net Position balances at September 30, 2016 and 2015 for both governmental activities and business-type activities.

2016 2015 2016 2015 2016 2015

Current Assets: Unrestricted 632,894$ 575,560$ 120,674$ 118,465$ 753,568$ 694,025$ Restricted - - 136,601 103,735 136,601 103,735 Noncurrent assets: Restricted - - 144,081 150,270 144,081 150,270 Unrestricted 44,689 48,758 16,507 17,645 61,196 66,403 Capital, net 862,288 830,894 707,300 700,053 1,569,588 1,530,947 Total assets 1,539,871 1,455,212 1,125,163 1,090,168 2,665,034 2,545,380

Deferred Outflows of Resources:Deferred amounts on pension 193,364 30,018 14,063 2,239 207,427 32,257 Deferred amounts on debt refundings - - 6,188 6,697 6,188 6,697 Total deferred outflows of resources 193,364 30,018 20,251 8,936 213,615 38,954

Current Liabilities:Payable from current assets 64,846 50,433 16,203 19,106 81,049 69,539 Payable from restricted assets - - 25,264 24,287 25,264 24,287 Noncurrent liabilities 503,910 266,327 395,191 390,960 899,101 657,287 Total liabilities 568,756 316,760 436,658 434,353 1,005,414 751,113

Deferred inflows of Resources:Deferred amounts on pension 13,763 38,987 781 2,531 14,544 41,518 Total deferred inflows of resources 13,763 38,987 781 2,531 14,544 41,518

Net Position:Net investment in capital assets 789,226 772,236 492,337 474,895 1,281,563 1,247,131 Restricted 319,123 320,899 165,304 156,238 484,427 477,137 Unrestricted 42,367 36,348 50,334 31,086 92,701 67,434 Total net position 1,150,716$ 1,129,483$ 707,975$ 662,219$ 1,858,691$ 1,791,702$

Governmental Business-TypeActivities Activities Total – All Activities

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The changes in net position for the years ended September 30, 2016 and 2015 are presented below, followed by information regarding those governmental and business-type activities contributing most significantly to the changes.

2016 2015 2016 2015 2016 2015Revenues:Program revenues: Charges for services 112,236$ 87,921$ 157,370$ 152,141 269,606$ 240,062 Operating grants and contributions 28,519 41,460 - 890 28,519 42,350 Capital grants and contributions 14,189 22,718 32,995 26,346 47,184 49,064 General revenues: Property taxes 193,198 174,916 - - 193,198 174,916 State-shared revenue 42,382 36,632 - - 42,382 36,632 Grants/contributions 801 983 - - 801 983 Other taxes 57,537 54,518 - - 57,537 54,518 Investment earnings 4,716 2,617 3,363 3,433 8,079 6,050 Miscellaneous 10,241 18,732 599 2,324 10,840 21,056

Total revenues 463,819 440,497 194,327 185,134 658,146 625,631

Expenses: General government 109,189 87,185 - - 109,189 87,185 Public Safety 202,889 159,264 - - 202,889 159,264 Physical environment 18,641 563 - - 18,641 563 Transportation 42,266 63,987 - - 42,266 63,987 Economic environment 13,607 10,314 - - 13,607 10,314 Human services 11,864 14,865 - - 11,864 14,865 Culture and recreation 20,152 15,115 - - 20,152 15,115 Court-related 21,025 19,777 - - 21,025 19,777 Interest/LT Debt 2,885 2,930 - - 2,885 2,930 Water/Sewer - - 116,512 110,296 116,512 110,296 Solid Waste Disposal/ Resource Recovery - - 32,127 32,683 32,127 32,683

Total expenses 442,518 374,000 148,639 142,979 591,157 516,979

Increase in net position before transfers 21,301 66,497 45,688 42,155 66,989 108,652 Transfers (net) (68) (231) 68 231 - -

Change in net position 21,233 66,266 45,756 42,386 66,989 108,652 Net position, beginning of year 1,129,483 1,063,217 662,219 619,833 1,791,702 1,683,050 Net position,

ending 1,150,716$ 1,129,483$ 707,975$ 662,219$ 1,858,691$ 1,791,702$

Activities Activities Total – All ActivitiesGovernmental Business-Type

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Governmental Activities

Fiscal Year 2016

‐

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

200.0

220.0

240.0

13.5

46.1

1.8

51.4

7.2 2.6

15.9 16.5

‐

109.2

202.8

18.6

42.3

13.6 11.9

20.2 21.0

2.9

In M

illions

Program Revenue versus Total Expenses

Revenues

Expenses

Operating Grants$28.5 6.1%

Charges for Services$112.2 24.2%

Capital Grants$14.2 3.1%

Property Taxes$193.2 41.6%

Other Taxes$31.4 6.8%

Other Revenues*$15.73.4%

Local Government Sales Tax

$26.2 5.7%

State Shared Revenue

$42.3 9.1%

Total Revenues by Type(in Millions)

* Includes Interest earnings, Unrestricted Grants and Contributions, and Miscellaneous* Includes Interest earnings, Unrestricted Grants and Contributions, and Miscellaneous

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Business-type Activities Fiscal Year 2016

‐

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Water and Sewer Unit Solid Waste Disposal andResource Recovery

143.0

47.3

116.5

32.1 In M

illions

Program Revenues and Expenses

Revenues

Expenses

Charges for Services$157.4 81.0%

Capital Grants and Contributions

$33.0 17.0%

Interest Earnings$3.4 1.7%

Miscellaneous$0.6 0.3%

Total Revenues by Type(in Millions)

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Governmental Activities Governmental activities increased Pasco County’s net position by $21.2 million, or 1.9%, during fiscal year 2016. In 2016, the change in net position decreased by 68% from the previous year. The cost of all governmental activities in 2016 was $442.5 million, an increase of 18.3% from 2015. The amount that taxpayers paid for these activities through property, sales, telecommunications, gasoline, and tourist development taxes was $250.7 million. Those who directly benefit from the programs paid some of the cost ($112.2 million) through charges for services, while other governments and organizations subsidized programs with grants and contributions, and shared revenues ($85.1 million). Business-type Activities As stated earlier, the County has two business-type activities, the Water and Sewer Unit and the Solid Waste Disposal and Resource Recovery System. The Water and Sewer Unit provides a potable water supply, and its distribution, as well as wastewater collection and treatment, disposal and reuse. These services are provided through facilities owned by the County and through contracts with other entities. The water distribution system, including pump stations, treatment plants, water mains, and water storage facilities, is connected to two major supply sources - Tampa Bay Water (Starkey, Cypress Creek, and Lake Bridge) and forty-three individual water supply wells throughout the County. The County also operates seven wastewater treatment plants, in addition to a Residual Management Facility and a Grease Facility. Disposal of wastewater is primarily accomplished through the use of reclaimed water systems, spray irrigation evaporation/percolation ponds, and cooling tower water for the County’s Waste-to Energy Facility (see below). The County annually updates its Capital Improvements Plan which will produce population and wastewater flow projections, examine service areas, wastewater treatment and disposal alternatives, and include recommendations concerning construction and implementation schedules. In addition, a Sanitary Sewer Management Plan and the Water Quality and Water Distribution Management Plan have been undertaken to evaluate and address the Unit’s infrastructure. The Solid Waste Disposal and Resource Recovery System provides an integrated approach to waste management. Collection is primarily achieved by private hauling firms that are licensed by the Board of County Commissioners. Processible solid waste is trucked either directly to the mass-burn resource recovery facility (the “Facility”) or to the East Pasco Transfer Station, for subsequent transportation to the Facility. The Facility converts solid waste to electrical power through a combustion process that generates approximately 23 megawatts of electricity per hour for sale to Duke Energy (Formerly Progress Energy) under a power purchase agreement. The facility has a current capacity of 1,050 tons per day. Non-processible solid waste disposal is provided for by landfill facilities. The County also actively pursues recycling, following the mandate provided for in the Recycling Act. The recycling rate in the County was 66% (2016 rate published by the Florida Department of Environmental Protection, the latest reporting period available). The activities of the Water and Sewer Unit, and the Solid Waste Disposal and Resource Recovery System are analyzed below in the proprietary funds section of the Financial Analysis of the County’s Funds.

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Financial Analysis of the County’s Funds As noted earlier, Pasco County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing Pasco County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the net resources available for spending at the end of the fiscal year. The governmental fund types include the general, special revenue, debt service, and capital projects funds. As noted above, at September 30, 2016, Pasco County governmental funds reported an increase in combined fund balances of $48.37 million over the prior year. Of the total combined ending fund balances of $482.1 million, 83.5%, or $402.6 million, represents restricted amounts that can only be used for specific purposes that are imposed by external constraints such as bond covenants, grantors, or regulations of other governments; 2.1%, or $10.3 million, are committed amounts that can only be used in accordance with the formal action taken by the Board of County Commissioners; and 2.9%, or $14.2 million, are amounts assigned by either the Board, or the Office of the Clerk Comptroller, to be used for specific purposes that are neither restricted nor committed, such as disaster recovery. Major Governmental Funds As noted above, the fund balance of the General Fund, the chief operating fund of the County, increased by $11.8 million during fiscal year 2016. In 2016 revenues increased by $27.4, or by 13%, from fiscal year 2015. The main increase was related to a $13.1 million, or 9.0%, increase in tax revenue for 2016. Also for 2016 there was an increase in intergovernmental revenue of $16.7 million from 2015; a large portion of this amount was due to the 107% increase in state revenue. For fiscal year 2016, the Penny for Pasco Fund, was classified as a major fund as it meets the criteria set forth in GASB Statement No. 34. The Penny for Pasco Fund is used account for construction costs of renovations, additions, or new construction of various government facilities of diverse types and uses. Financing is provided through a local option sales surtax and the interest revenue earned. This fund is in accordance with Chapter 102 of the County Code of Ordinance (§ 102-205) and Section 212.054, Florida Statutes. Fund balance increased $16.8 million during the current fiscal year primarily due to the issuance of $15.1 million in Public Safety notes to fund communications equipment. Nonmajor Governmental Funds Those funds that do not meet GASB No. 34 criteria for major fund classification are considered nonmajor. Total fund balances of all nonmajor special revenue funds increased by $22.2 million from the prior year. The most significant increases occurred in the Road and Bridge ($9.6 million) and Multi-modal Transportation ($5.0 million) nonmajor special revenue funds. Debt service funds, all of which are classified as nonmajor, are used to account for the accumulation of resources for, and the payment of long-term debt principal and interest. During fiscal year 2016, there was an overall fund balance decrease of $10 million resulting primarily from a decrease of $5.1 million for the Guaranteed Entitlement Refunding Revenue Bonds Series 2013 and a $4.9 million decrease in the Guaranteed Entitlement Loan Series 2014 nonmajor debt service funds. Overall, the decrease for 2016

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was related to the transferring of excess funds to the General Fund. Overall the transfer out was $20.7 million with no similar transfers in the prior fiscal year. Capital projects funds, which account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds), exhibited an overall increase in fund balances of $7.5 million during fiscal 2016, primarily coming from increases in the 3 mobility fee districts ($13.8 million) offset by the additional $5.3 million in expenses in regards to the Capital Projects Fund. General Governmental Functions For the purpose of this section, general governmental functions are defined as those that include the General, Special Revenue, Debt Service, and Capital Projects Funds. This data is the result of the application of the modified accrual basis of accounting for general governmental functions. Revenues for general governmental functions totaled $475.7 million in fiscal 2016, an increase of $28.1 million, or 6.3% from the prior year. While current tax collections were 99.80% of the tax levy (0.04% higher than the prior year), and the ratio of total collections (current and delinquent) to the current tax levy was 99.86% (0.06% higher than the prior year), there was a resulting $23.1 million in total tax revenues over 2015. Expenditures for general governmental functions totaled $441.3 million in fiscal 2016, an increase of $23.9 million, or 5.7%, from fiscal year 2015. Proprietary Funds Proprietary funds statements provide the same type of information found in the government-wide financial statements, because they follow the accrual method of accounting; however, the information is in more detail. As noted above, the County’s proprietary funds include enterprise funds, comprised of the Water and Sewer Unit Fund and the Solid Waste Disposal and Resource Recovery System Fund, both of which are classified as major funds of the County, and internal service funds that account for equipment and insurance services. The Water and Sewer Unit Fund had total net position of $611.6 million at September 30, 2016, which represented a $29.8 million increase over fiscal year 2015. This increase was due to a number of factors. Charges for services rose by $5.8 million in 2016 while operating expenses increased by $6.8 million compared to the prior year, in large part due to a $5.1 million increase in personal services and an increase of $2.3 million in contractual services. The result of the increase in operating revenues and expenses lead to a decrease of $1.0 million in operating income. The current year net position increase as compared to prior year was further the result of an increase in capital contributions and grants of $6.6 million in 2016. This increase is mainly due to additional developer contributions and impact fees collected in fiscal year 2016. The Solid Waste Disposal and Resource Recovery System Fund’s net position at year-end was $96.4 million, which represented an increase of $16 million over 2015. This increase was comparable to the prior year’s net position growth of $16.7 million. The Internal Service Funds had net position at year-end of $81.6 million, an increase of $6.6 million over the prior year net position of $75 million. This increase was comparable to the prior year’s growth in net position of $5.4 million. Overall income before contributions and transfers was $1.2 million larger than in 2015.

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General Fund Budgetary Highlights The budget and actual comparison statement for the General Fund displays the original adopted budget, the final revised budget, and actual costs. The original budget, as approved, may be revised during the year for a number of reasons. The General Fund’s amendments and supplemental appropriations for the year were not material. Actual expenditures for fiscal year 2016 were $36.6 million less than budgeted. This included $19.7 million less in general government (noncourt-related) costs, with the largest reductions being in Information Technology ($15.1million), Information Technology Projects and Capital ($1.4 million), and Facilities Management ($2.0 million). Total Economic environment expenditures were less than budgeted by $1.8 million, with the largest reduction being in Economic Development-Reverse Frontage Roads ($1.76 million). Overall, actual revenues in the General Fund exceeded budgeted revenues by $14.2 million. The largest positive variances were found in charges for services ($5.3 million) and Taxes ($3.0 million). Capital Assets The County’s capital assets, for both governmental and business-type activities at September 30, 2016, totaled approximately $1.6 billion, net of accumulated depreciation. Capital assets include land, buildings, improvements other than buildings, equipment, construction in process, infrastructure, and intangibles. Infrastructure includes roads, streets, and sidewalks. The County’s intangible assets include easements and internally generated software. The balances are summarized below.

2016 2015 2016 2015 2016 2015Land $ 159,354 $ 144,666 $ 25,791 25,767 185,145$ 170,433 Buildings 246,745 232,447 153,297 152,302 400,042 384,749 Improvements 55,334 40,965 956,376 880,650 1,011,710 921,615 Equipment 176,516 165,440 7,313 6,879 183,829 172,319 Construction in process 117,831 119,176 18,611 53,768 136,442 172,944 Infrastructure 535,818 534,814 - - 535,818 534,814 Intangibles 12,974 8,889 2,626 2,626 15,600 11,515

1,304,572 1,246,397 1,164,014 1,121,992 2,468,586 2,368,389 Accumulated depreciation (442,284) (415,503) (456,714) (421,939) (898,998) (837,442)

Total capital assets $ 862,288 $ 830,894 $ 707,300 700,053$ 1,569,588$ 1,530,947$

Governmental Business-Type TotalActivities Activities All Activities

The increase in total capital assets from the prior year was a nominal amount of 2.5%. Additional information about Pasco County’s capital assets can be found in Note 7.

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Debt Administration At September 30, 2016, Pasco County had total bonded debt outstanding of $346.6 million. Of this amount, $55 million comprises debt related to governmental activities, and $291.6 million of the total is bonded debt of business-type activities. All bonded debt of the County is in the form of revenue bonds. Additional information regarding bond issues can be found in Note 9. Debt Ratings The following table shows the ratings for each County bond issue as of September 30, 2016:

Standard and

Debt Issues Poor’s Fitch Moody’s

Governmental Activities:$15,310,000 Guaranteed Entitlement Refunding Revenue Bonds, Series 2013B - AA A1$9,985,000 Guaranteed Entitlement Refunding Revenue Bonds, Series 2013A - AA A1$33,785,000 Half-cent Sales Tax Refunding Revenue Bonds, Series 2013A - AA Aa3Business-Type Activities:$71,160,000 Water and Sewer Refunding Revenue Bonds, Series 2006 AA+ AA Aa2$31,715,000 Water and Sewer Revenue Bonds, Series 2009A (1) AA+ AA Aa2$115,655,000 Water and Sewer Revenue Bonds, Series 2009B (1) AA+ AA Aa2$39,150,000 Solid Waste Disposal and Resource Recovery System Refunding Revenue Bonds, Series 2011 (AMT) AA - Aa3$54,290,000 Water and Sewer Refunding Revenue Bonds, Series 2014A AA+ AA Aa2$50,620,000 Water and Sewer Improvement Revenue Bonds, Series 2014B AA+ AA Aa2$18,170,000 Solid Waste and Resource Recovery System Refunding Revenue - _ _ Bond, Series 2015

The highest quality ratings available from the respective services are as follows: S&P AAA; Fitch AAA; Moody’s Aaa. With the exception of the bank qualified issue (1), all Pasco County bond issues are insured, and the payment of principal and interest is guaranteed.

(Note: Bonds with higher ratings offer cost savings to issuers like Pasco County)

C-14

Currently Known Facts and Conditions Since 2013 there has been a increase of taxable assessed values of about 17%. The main source of this increase is due to the significant increase in new construction throughout the county. The county has projected that, during fiscal year 2017, it will surpass the property value of nearly $30 billion in 2008. The approved total County budget for fiscal 2017 is $1.592 billion, an increase of 17.7% over last year’s budget. Many events took place in 2016 that will have a long standing effect on the community as a whole. Pasco County executed the Economic Incentive Agreements, which in turn will create an additional 228 jobs. Also, Pasco County authorized $400,000 in funding for the AmSkills Industry Certification Training Center. This center will help draw in manufacturers from all over the county, as well as provide skills training to local high school students. This will allow for the creation of future jobs within the county as well as having the people necessary to fulfill the necessary requirements. The County also expects to see an increase in revenue as it relates to the Half Cent Sales Tax Revenue. This is a State Shared Revenue; however it is paid based on population not actual sales. As a result of the continued exponential growth of the county there will be a proportionate rise in the revenue obtained. If population growth remains on track it is expected that a 6.0% growth in the Half Cent Sales Tax will lead to an additional $1.5 million in revenue. Economic Factors and Next Year’s Budgets and Rates Pasco County considered many factors in preparing the budget for the 2017 fiscal year, including the following: Total Taxable Assessed Values (TTAV) have increased each year since 2013 following five years of

decline. In fact, TTAV increased by more than 17% since 2013 with the value of new construction accounting for a significant portion of that increase.

The median value of a single-family home in Pasco County increased from $108,000 in September of

2012 to $155,000 in September of 2016. The level of outstanding delinquent property taxes rose to a high of $1,996,617 in 2009. In 2016 the

amount of delinquent taxes was $396,692, reaching the lowest point since 2008. The population of Pasco County increased from 487,588 in 2015 to 495,868 in 2016, the sixth year in a

row of growth. The County’s population is projected to grow 9.0% by the year 2020.

Pasco County’s unemployment rate as of September 30, 2016 was 5.1%, a decrease of 0.9% from 2015.

Resident income levels have increased since 2000 – Median Household Income levels were $44,518, in

2016, versus $32,969 in 2000. Requests for Information This financial report is designed to provide a general overview of Pasco County’s finances. Questions concerning information provided in this report, or requests for additional information, should be addressed to the Director of Finance, Clerk of the Circuit Court and County Comptroller, Pasco County, 38053 Live Oak Avenue, Dade City, FL 33523.

BASIC FINANCIAL STATEMENTS

The Basic Financial Statements include:

Government-Wide Financial Statements

Fund Financial Statements


The Government-Wide Financial Statements are prepared using the accrual method of accounting

and provide a broad overview of the County’s finances. The Government-Wide Financial Statements include

the Statement of Net Position and the Statement of Activities.

The Fund Financial Statements are prepared using the modified accrual or accrual basis of accounting

and provide additional and detailed information for the County’s major funds, individually,

and nonmajor funds, in the aggregate, for governmental, proprietary, and fiduciary fund types,

including budgetary comparison statements.

Notes to Financial Statements include disclosures necessary

to provide a complete picture of the financial statements.

GOVERNMENT-WIDE FINANCIAL STATEMENTS

AND

FUND FINANCIAL STATEMENTS

PASCO COUNTY, FLORIDA STATEMENT OF NET POSITION

SEPTEMBER 30, 2016

D-1

PRIMARY GOVERNMENTGOVERNMENTAL BUSINESS-TYPE COMPONENT

ACTIVITIES ACTIVITIES TOTALS UNIT

ASSETS Current assets: Cash and cash equivalents 360,739,764$ 77,473,000$ 438,212,764$ 69,876$ Investments 218,998,266 23,509,498 242,507,764 45,529 Restricted assets: Cash and cash equivalents - 136,600,900 136,600,900 - Accounts receivable, net 8,283,751 17,607,492 25,891,243 42,822 Notes receivable 4,965,477 - 4,965,477 - Assessments receivable 15,891,063 - 15,891,063 - Due from other governments 22,297,586 1,041,654 23,339,240 - Prepaid Items 31,447 462 31,909 - Inventories 857,609 1,030,176 1,887,785 - Other 828,921 11,549 840,470 - Total current assets 632,893,884 257,274,731 890,168,615 158,227

Noncurrent assets: Restricted cash and cash equivalents - 39,105,120 39,105,120 - Restricted investments - 104,976,136 104,976,136 - Notes receivable 44,689,289 - 44,689,289 - Due from other governments - 15,538,516 15,538,516 - Water entitlements - 968,610 968,610 - Capital assets: Land 159,354,417 25,791,246 185,145,663 - Intangibles 12,974,937 2,626,006 15,600,943 - Buildings 246,745,176 153,296,785 400,041,961 - Improvements other than buildings 55,333,716 956,376,285 1,011,710,001 - Equipment 176,515,511 7,312,770 183,828,281 - Construction in process 117,831,025 18,610,740 136,441,765 - Infrastructure 535,817,836 - 535,817,836 - Less accumulated depreciation (442,284,355) (456,714,407) (898,998,762) - Capital assets, net 862,288,263 707,299,425 1,569,587,688 - Total noncurrent assets 906,977,552 867,887,807 1,774,865,359 - Total assets 1,539,871,436 1,125,162,538 2,665,033,974 158,227

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts on pension 193,364,338 14,063,521 207,427,859 - Deferred amounts on debt refundings - 6,187,756 6,187,756 - Total deferred outflows of resources 193,364,338 20,251,277 213,615,615 -

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

D-2


ACTIVITIES ACTIVITIES TOTALS UNIT

LIABILITIES Current liabilities: Vouchers payable 35,120,579$ 14,194,347$ 49,314,926$ 130$ Contracts payable 2,094,492 999,100 3,093,592 - Accrued liabilities 11,011,917 883,853 11,895,770 - Claims payable 4,640,580 - 4,640,580 - Due to other governments 760,534 22,547 783,081 12,938 Deposits 4,014,736 - 4,014,736 - Interest payable 936,302 - 936,302 - Other liabilities 18,537 - 18,537 - Compensated absences 1,776,627 103,179 1,879,806 - Notes payable 2,322,000 - 2,322,000 - Bonds payable, net 2,150,000 - 2,150,000 - Payable from restricted assets: Deposits - 6,929,600 6,929,600 - Interest payable - 7,478,521 7,478,521 - Bonds payable, net - 10,855,980 10,855,980 - Total current liabilities 64,846,304 41,467,127 106,313,431 13,068

Noncurrent liabilities: Estimated landfill closure costs - 50,154,759 50,154,759 - Pollution remediation costs - 430,000 430,000 - Claims payable 8,387,851 - 8,387,851 - Compensated absences 16,467,400 1,829,658 18,297,058 - Unearned revenue 6,084,642 22,623,147 28,707,789 42,536 Notes payable 20,294,000 - 20,294,000 - Other post employee benefits 31,750,336 3,502,487 35,252,823 - Net pension liability 368,096,219 28,034,331 396,130,550 - Bonds payable, net 52,830,000 288,616,655 341,446,655 - Total noncurrent liabilities 503,910,448 395,191,037 899,101,485 42,536 Total liabilities 568,756,752 436,658,164 1,005,414,916 55,604

DEFERRED INFLOWS OF RESOURCES Deferred amounts on pension 13,763,391 780,594 14,543,985 - Total deferred inflows of resources 13,763,391 780,594 14,543,985 -

NET POSITIONNet investment in capital assets 789,225,985 492,337,020 1,281,563,005 - Restricted for: Debt service 2,790,867 56,882,704 59,673,571 - Road projects 151,406,009 - 151,406,009 - Public safety 32,662,358 - 32,662,358 - Economic environment 83,278,766 - 83,278,766 - Culture and recreation 20,303,151 - 20,303,151 - Impact fees - 55,447,501 55,447,501 - Renewal and replacement - 19,451,147 19,451,147 - Landfill closure - 26,635,955 26,635,955 - Other purposes 28,681,556 6,886,211 35,567,767 102,623 Unrestricted 42,366,939 50,334,519 92,701,458 -

Total net position 1,150,715,631$ 707,975,057$ 1,858,690,688$ 102,623$

PASCO COUNTY, FLORIDA STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED SEPTEMBER 30, 2016

D-3

PROGRAM REVENUESOPERATING CAPITAL

CHARGES FOR GRANTS AND GRANTS ANDFUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS

PRIMARY GOVERNMENT: Governmental activities: General government 109,189,939$ 13,303,610$ 176,481$ -$ Public safety 202,889,097 35,035,971 9,474,891 1,578,403 Physical environment 18,640,500 1,428,035 359,008 - Transportation 42,266,205 37,196,624 4,414,560 9,741,871 Economic environment 13,606,526 182,477 6,934,284 92,619 Human services 11,863,678 797,789 1,838,747 - Culture and recreation 20,151,727 12,793,736 305,855 2,775,823 Court-related 21,025,250 11,497,685 5,015,578 - Interest and debt service charges 2,885,155 - - -

Total governmental activities 442,518,077 112,235,927 28,519,404 14,188,716

Business-type activities: Water and sewer unit 116,511,847 110,031,611 - 32,995,306 Solid waste disposal and resource recovery 32,127,432 47,338,103 - -

Total business-type activities 148,639,279 157,369,714 - 32,995,306

Total primary government 591,157,356$ 269,605,641$ 28,519,404$ 47,184,022$

COMPONENT UNIT: Housing Finance Authority 58,639$ -$ 121,931$ -$

General revenues: Taxes: Property taxes Sales tax Telecommunications tax Gas taxes Tourist development tax State shared revenues not restricted to specific programs Grants and contributions not restricted to specific programs Interest earnings

MiscellaneousTransfers

Total general revenues and transfers

Change in net positionNet position- beginning of year

Net position - ending


D-4

NET (EXPENSE) REVENUE ANDCHANGES IN NET ASSETS


ACTIVITIES ACTIVITIES TOTAL UNIT

(95,709,848)$ -$ (95,709,848)$ -$ (156,799,832) - (156,799,832) -

(16,853,457) - (16,853,457) - 9,086,850 - 9,086,850 -

(6,397,146) - (6,397,146) - (9,227,142) - (9,227,142) - (4,276,313) - (4,276,313) - (4,511,987) - (4,511,987) - (2,885,155) - (2,885,155) -

(287,574,030) - (287,574,030) -

- 26,515,070 26,515,070 - - 15,210,671 15,210,671 -

- 41,725,741 41,725,741 -

(287,574,030) 41,725,741 (245,848,289) -

- - - 63,292

193,198,363 - 193,198,363 - 26,165,678 - 26,165,678 - 4,894,076 - 4,894,076 -

25,398,754 - 25,398,754 - 1,078,399 - 1,078,399 -

42,381,660 - 42,381,660 - 800,969 - 800,969 -

4,715,824 3,362,785 8,078,609 367

10,241,376 599,730 10,841,106 - (68,250) 68,250 - -

308,806,849 4,030,765 312,837,614 367

21,232,819 45,756,506 66,989,325 63,659 1,129,482,812 662,218,551 1,791,701,363 38,964

1,150,715,631$ 707,975,057$ 1,858,690,688$ 102,623$

PASCO COUNTY, FLORIDA BALANCE SHEET – GOVERNMENTAL FUNDS

SEPTEMBER 30, 2016

D-5

PENNY OTHER TOTAL

GENERAL FOR GOVERNMENTAL GOVERNMENTAL

FUND PASCO FUNDS FUNDS

ASSETS

Cash and cash equivalents 40,481,629$ 52,802,289$ 219,978,554$ 313,262,472$ Investments 28,980,703 34,404,012 131,910,439 195,295,154 Accounts receivable, net 6,266,426 - 1,950,853 8,217,279 Notes receivable 20,132,869 - 29,521,897 49,654,766 Assessments receivable 164 - 15,890,899 15,891,063 Due from: Other funds 18,006,980 - 2,191,161 20,198,141 Other governments 2,832,397 2,690,501 16,768,234 22,291,132 Advances to other funds 1,534,000 - - 1,534,000 Prepaid items 19,751 - 11,696 31,447 Inventories 187,350 - 462,721 650,071 Other assets 10,026 - 679,595 689,621 Total assets 118,452,295$ 89,896,802$ 419,366,049$ 627,715,146$

LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES

Liabilities: Vouchers payable 9,687,343$ 1,498,416$ 20,277,441$ 31,463,200$ Contracts payable - 137,904 1,956,588 2,094,492 Accrued liabilities 8,450,371 - 2,535,865 10,986,236 Due to: Other funds 84,390 - 20,113,751 20,198,141 Other governments 168,146 - 592,388 760,534 Deposits 3,378,829 - 635,907 4,014,736

Unearned revenue 1,113,539 - 4,930,654 6,044,193 Other liabilities 7,625 - 10,912 18,537 Total liabilities 22,890,243 1,636,320 51,053,506 75,580,069 Deferred inflows of resources: Unavailable revenue 23,329,479 - 46,747,776 70,077,255 Total deferred inflows of resources 23,329,479 - 46,747,776 70,077,255

Fund balances:Nonspendable: Advances to other funds, inventories and prepaid items 1,741,101 - 474,417 2,215,518 Spendable:Restricted for: Bond covenants or debt service - - 3,727,169 3,727,169 Grant programs and projects 523,913 - 9,530,039 10,053,952 Federal or state law 17,014 88,260,482 184,263,507 272,541,003 Impact fees - - 106,521,234 106,521,234 Other purposes 96,018 - 9,663,446 9,759,464 Committed to: Capital projects - - 5,765,974 5,765,974 By ordinances or other 2,923,703 - 1,603,898 4,527,601 Assigned to: Contracted services 2,500,000 - - 2,500,000 Other purposes 3,368,347 - 8,339,801 11,708,148 Unassigned 61,062,477 - (8,324,718) 52,737,759 Total fund balances 72,232,573 88,260,482 321,564,767 482,057,822

Total liabilities, deferred inflows of resources, and fund balances 118,452,295$ 89,896,802$ 419,366,049$ 627,715,146$


PASCO COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2016

D-6

Total fund balances for governmental funds 482,057,822$

Total Net Position reported for governmental activities in theStatement of Net Position is different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 832,368,701

Long-term liabilities, including bonds payable ($54,980,000),notes payable ($22,616,000) and accrued compensated absences($18,064,411) are not due and payable in the current periodand, therefore, are not reported in the funds. (95,660,411)

Accrued interest on long-term debt is not a financial useand, therefore, is not reported in the funds. (936,302)

Notes receivables and certain accounts receivables are not financial resources in the current period and, therefore, are deferred in the funds. 56,195,142

Certain special assessment receivables are not financial resources in thecurrent period and, therefore, are deferred in the funds. 13,882,113

Other post employee benefits are not due and payable in the current period and, therefore, are not reported in the funds. (31,750,336)

Net Pension liability ($365,424,251) and related deferred outflows ($192,044,081) and inflows ($13,672,977) of resources are not due and payable in the current period and, therefore, are not reported in the funds. (187,053,147)

Internal service funds are used by management to charge thecosts of certain activities, such as insurance and equipmentservices, to individual funds. The assets and liabilities of theinternal service funds are included in governmental activitiesin the Statement of Net Position. 81,612,049

Total net position of governmental activities 1,150,715,631$


PASCO COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES – GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016

D-7

PENNY OTHER TOTALGENERAL FOR GOVERNMENTAL GOVERNMENTAL

FUND PASCO FUNDS FUNDS

REVENUES Taxes 157,709,497$ 26,165,678$ 63,715,363$ 247,590,538$ Special assessments - - 35,938,431 35,938,431 Licenses and permits 229,311 - 24,014,919 24,244,230 Intergovernmental: Federal 680,178 - 14,575,149 15,255,327 State 32,556,629 - 40,516,497 73,073,126 Local 94,670 - 101,237 195,907 Charges for services 30,354,669 - 20,946,385 51,301,054 Fines and forfeitures 236,378 - 2,465,672 2,702,050 Interest and other earnings 1,648,740 316,775 2,638,002 4,603,517 Miscellaneous 14,791,389 - 6,019,456 20,810,845 Total revenues 238,301,461 26,482,453 210,931,111 475,715,025

EXPENDITURES Current: General government (noncourt-related) 62,340,948 - 21,329,355 83,670,303 Public safety 126,015,643 - 57,545,780 183,561,423 Physical environment 373,266 - 1,403,525 1,776,791 Transportation - - 56,435,723 56,435,723 Economic environment 6,462,838 - 6,660,322 13,123,160 Human services 10,686,586 - 3,356,670 14,043,256 Culture and recreation 14,588,701 - 3,419,782 18,008,483 Court-related 5,924,546 - 14,278,777 20,203,323 Miscellaneous 4,988,736 - 6,687,900 11,676,636 Capital outlay - 21,894,724 10,475,167 32,369,891 Debt service: Principal - - 3,433,000 3,433,000 Interest and debt service charges - - 2,963,447 2,963,447 Total expenditures 231,381,264 21,894,724 187,989,448 441,265,436

Excess of revenues over expenditures 6,920,197 4,587,729 22,941,663 34,449,589

OTHER FINANCING SOURCES (USES) Transfers in 22,583,594 - 23,514,127 46,097,721 Transfers out (17,702,405) (2,878,552) (26,675,680) (47,256,637) Note proceeds - 15,080,000 - 15,080,000 Total other financing sources (uses) 4,881,189 12,201,448 (3,161,553) 13,921,084

Net change in fund balances 11,801,386 16,789,177 19,780,110 48,370,673

Fund balances at beginning of year 60,431,187 71,471,305 301,784,657 433,687,149

Fund balances at end of year 72,232,573$ 88,260,482$ 321,564,767$ 482,057,822$


PASCO COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


D-8

Net change in fund balances reported on theStatement of Revenues, Expenditures, and Changes inFund Balances – Governmental Funds 48,370,673$

The change in net position reported for governmental activities in the Statement of Activities is different because:

Governmental funds report capital outlays as expenditures.However, in the Statement of Activities, the cost of thoseassets is allocated over their estimated useful lives as depreciationexpense. This is the amount by which capital outlay for governmental funds($60,138,737) exceeded depreciation ($34,498,374) in the current period. 25,640,363

In the Statement of Net Position, the loss on the sale of capital assets is reported. However, in the governmental funds the proceeds from the sale of capital assetsincreases financial resources. The change in net position differs from the change infund balance by the net book value of assets disposed. (608,010)

Repayments of bond principal ($2,090,000) and notes payable($1,343,000) are expenditures in the governmental funds, butthe repayments reduce long-term liabilities in the Statement of Net Position.Proceeds from the issuance of debt ($15,080,000) are other sources of fundsin governmental funds but increase long-term liabilities in the Statementof Net Position (11,647,000)

Some expenses reported in the Statement of Activities do not requirethe use of current financial resources and, therefore, are not reported asexpenditures in governmental funds (increase in compensated absences of $1,396,562 and decrease in accrued bond and note interest of $78,291when comparing prior year accrual and current year accrual). (1,318,271)

Internal service funds are used by management to charge the costs of insuranceand equipment services to individual funds. $3,846,607 of total operating incomeand $2,726,404 of total non-operating expenses, capital contributions, and transfersof the internal service funds are reported with governmental activities. 6,573,011

Other post - employment benefits reported in the Statementof Activities do not require the use of current financial resources and,are not reported as expenditures in governmental funds. (4,644,750)

Some special assessment charges and change in deferred inflows ofresources related to accounts receivable and notes receivable andchange in unavailable revenue of impact fees do not provide currentfinancial resources and, therefore, are not reported as revenues ingovernmental funds. (7,263,225)

Changes in the pension liability reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. (33,869,972)

Change in net position of governmental activities 21,232,819$


PASCO COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL – BUDGET BASIS GENERAL FUND


D-9

VARIANCE WITHBUDGETED AMOUNTS FINAL BUDGET ACTUAL AMOUNTS POSITIVE

ORIGINAL FINAL Budget Basis (NEGATIVE)

REVENUES Taxes 154,718,840$ 154,718,840$ 157,709,497$ 2,990,657$ Licenses and permits 217,550 217,550 229,311 11,761 Intergovernmental: Federal 372,723 372,723 625,752 253,029 State 26,620,431 26,620,431 30,203,338 3,582,907 Local 138,706 138,706 94,670 (44,036) Charges for services 25,080,480 25,082,440 30,354,669 5,272,229 Fines and forfeitures 238,340 238,340 236,378 (1,962) Interest and other earnings 120,671 120,671 1,525,891 1,405,220 Miscellaneous 12,620,408 12,677,029 13,387,478 710,449 Total revenues 220,128,149 220,186,730 234,366,984 14,180,254

EXPENDITURES Current: General government (noncourt-related): Board of County Commissioners 1,044,906 1,105,778 1,098,139 7,639 County administration 546,990 597,422 569,117 28,305 Customer service department 462,908 464,108 452,629 11,479 Office of management and budget 4,467,561 4,632,107 4,584,190 47,917 Internal Service Administration 267,078 267,078 242,419 24,659 Fiscal Services 4,914,110 4,894,571 4,523,537 371,034 County Attorney 1,515,482 1,554,244 1,422,795 131,449 Property Appraiser 4,782,021 4,782,350 4,347,812 434,538 Tax Collector 11,667,524 12,162,721 12,248,794 (86,073) Supervisor of Elections 3,471,346 3,471,346 3,380,225 91,121 Clerk & Comptroller 9,011,961 8,866,172 8,863,179 2,993 Facilities management 12,657,716 12,960,895 10,940,811 2,020,084 Information technology 4,363,524 18,923,408 3,852,810 15,070,598 Information technology projects and capital 3,790,616 4,188,009 2,769,848 1,418,161 Purchasing 580,371 580,987 568,707 12,280 Central stores 333,470 343,326 326,120 17,206 County personnel 824,700 826,168 816,178 9,990 GIS 321,242 338,725 330,970 7,755 Public services - administration 409,446 409,446 390,188 19,258 Detention Control Center 643,104 643,104 612,480 30,624 Total general government (noncourt-related) 66,076,076 82,011,965 62,340,948 19,671,017 Public safety: Sheriff 100,872,912 101,040,378 106,075,869 (5,035,491) Medical examiner 1,275,000 1,254,637 1,226,524 28,113 Public defender-jail diversion 331,099 331,099 229,568 101,531 S.A.V.E. Program - - 205 (205) Ambulance billing 749,152 749,152 721,389 27,763 Rescue 17,646,290 17,651,344 17,139,659 511,685 OEM Administration 717,083 707,470 558,642 148,828 Incident support unit 80,960 80,960 63,787 17,173 Total public safety 121,672,496 121,815,040 126,015,643 (4,200,603) Physical environment: Cooperative extension 217,613 224,332 223,011 1,321 Florida yards and neighborhoods 143,044 144,628 143,853 775 Total physical environment 360,657 368,960 366,864 2,096

(Continued)


PASCO COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL – BUDGET BASIS GENERAL FUND


D-10

VARIANCE WITH

BUDGETED AMOUNTS FINAL BUDGET ACTUAL POSITIVE

ORIGINAL FINAL Budget Basis (NEGATIVE)

Economic environment: Economic Development-Reverse Frontage Roads 3,921,488$ 3,921,488$ 2,162,486$ 1,759,002$ Veteran services 288,604 288,604 272,146 16,458 Total economic environment 4,210,092 4,210,092 2,434,632 1,775,460

Human services: Human services 10,728,124 10,728,124 9,941,963 786,161 Contracts - ADA 2/3 53,350 310,203 57,780 252,423 Elderly nutrition 717,350 762,307 686,843 75,464 Total human services 11,498,824 11,800,634 10,686,586 1,114,048 Culture and recreation: Parks and recreation 9,052,919 9,323,143 8,953,572 369,571 Libraries - community services 6,069,727 5,962,007 5,635,129 326,878 Total culture and recreation 15,122,646 15,285,150 14,588,701 696,449 Court-related: Misdemeanor program 735,511 735,511 655,823 79,688 Guardian ad litem 16,097 13,343 11,075 2,268 Court tech-administration 507,852 473,052 433,983 39,069 Court tech-state attorney 163,935 163,935 131,864 32,071 Court tech-public defender 74,795 74,795 67,399 7,396 Court tech-CJIS 658,374 680,946 427,056 253,890 Court technology - G.A.L. 7,635 10,389 8,905 1,484 Court innovations 386,915 340,648 239,448 101,200 State attorney administration 72,243 72,243 63,344 8,899 Public defender administration 15,580 50,380 13,576 36,804 Sheriff 3,668,090 3,668,090 3,872,073 (203,983) Total court-related 6,307,027 6,283,332 5,924,546 358,786 Miscellaneous: Intergovernmental services 4,923,478 4,923,478 4,923,478 - Refund prior year revenue 10,000 10,000 1,491 8,509 Reserve for contingencies 37,480,890 17,143,056 - 17,143,056 Total miscellaneous 42,414,368 22,076,534 4,924,969 17,151,565 Total expenditures 267,662,186 263,851,707 227,282,889 36,568,818

Excess (deficiency) of revenues over expenditures (47,534,037) (43,664,977) 7,084,095 50,749,072

OTHER FINANCING SOURCES (USES) Transfers in 8,026,140 8,243,816 22,583,594 14,339,778 Transfers out (11,447,082) (17,643,356) (17,702,405) (59,049) Total other financing sources (uses) (3,420,942) (9,399,540) 4,881,189 14,280,729

Net change in fund balances (50,954,979) (53,064,517) 11,965,284 65,029,801


Fund balances at end of year -$ -$ 68,745,846$ 68,745,846$


PASCO COUNTY, FLORIDA STATEMENT OF NET POSITION – PROPRIETARY FUNDS

SEPTEMBER 30, 2016

D-11

BUSINESS-TYPE ACTIVITIES-ENTERPRISE FUNDS

SOLID WASTE GOVERNMENTALDISPOSAL ACTIVITIES-

WATER AND RESOURCE INTERNALAND RECOVERY SERVICE

SEWER UNIT SYSTEM TOTALS FUNDS

ASSETS Current assets: Cash and cash equivalents 9,938,837$ 67,534,163$ 77,473,000$ 47,477,292$ Investments 20,541,391 2,968,107 23,509,498 23,703,112 Accounts receivable, net 12,030,016 5,577,476 17,607,492 66,472 Restricted assets: Cash and cash equivalents 117,730,805 18,870,095 136,600,900 - Due from: Other governments 1,041,654 - 1,041,654 6,454 Inventories 1,030,176 - 1,030,176 207,538 Prepaid Items 280 182 462 - Other - 11,549 11,549 139,300 Total current assets 162,313,159 94,961,572 257,274,731 71,600,168

Noncurrent assets: Restricted cash and cash equivalents 39,079,435 25,685 39,105,120 - Restricted investments 69,506,255 35,469,881 104,976,136 - Due from other governments 15,538,516 - 15,538,516 - Water entitlements 968,610 - 968,610 - Capital assets: Land 20,419,552 5,371,694 25,791,246 1,889,479 Intangibles 2,626,006 - 2,626,006 - Buildings 120,565,495 32,731,290 153,296,785 2,368,321 Improvements other than buildings 826,592,846 129,783,439 956,376,285 2,326,545 Equipment 6,036,905 1,275,865 7,312,770 73,037,166 Construction in process 17,367,318 1,243,422 18,610,740 - Less accumulated depreciation (359,866,951) (96,847,456) (456,714,407) (49,701,949) Capital assets, net 633,741,171 73,558,254 707,299,425 29,919,562 Total noncurrent assets 758,833,987 109,053,820 867,887,807 29,919,562 Total assets 921,147,146 204,015,392 1,125,162,538 101,519,730

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts on pension 12,417,728 1,645,793 14,063,521 1,320,257 Deferred charges on debt refundings 3,481,896 2,705,860 6,187,756 - Total deferred outflows of resources 15,899,624$ 4,351,653$ 20,251,277$ 1,320,257$


PASCO COUNTY, FLORIDA STATEMENT OF NET POSITION – PROPRIETARY FUNDS

SEPTEMBER 30, 2016

D-12





LIABILITIES Current liabilities: Vouchers payable 9,686,629$ 4,507,718$ 14,194,347$ 3,657,379$ Contracts payable 970,067 29,033 999,100 - Accrued liabilities 755,115 128,738 883,853 25,681 Claims payable - - - 4,640,580 Due to: Other governments 17,300 5,247 22,547 - Compensated absences 89,421 13,759 103,179 14,369 Unearned revenue - - - 40,449 Payable from restricted assets: Deposits 6,903,927 25,673 6,929,600 - Interest payable 6,630,597 847,924 7,478,521 - Bonds payable (net) 5,958,662 4,897,318 10,855,980 - Total current liabilities 31,011,718 10,455,410 41,467,127 8,378,458

Noncurrent liabilities: Claims payable - - - 8,387,851 Advances from other funds - - - 1,534,000 Compensated absences 1,527,120 302,537 1,829,658 165,247 Estimated landfill closure and post closure costs - 50,154,759 50,154,759 - Pollution remediation costs - 430,000 430,000 - Unearned revenue 17,756,120 4,867,027 22,623,147 - Other post employment benefits 1,803,325 1,699,162 3,502,487 - Net pension liability 24,709,576 3,324,755 28,034,331 2,671,968 Revenue bonds (net) 247,972,611 40,644,044 288,616,655 - Total noncurrent liabilities 293,768,752 101,422,284 395,191,037 12,759,066

Total liabilities 324,780,470 111,877,694 436,658,164 21,137,524

DEFERRED INFLOWS OF RESOURCES Deferred amounts on pension 687,896 92,698 780,594 90,414 Total deferred inflows of resources 687,896 92,698 780,594 90,414

NET POSITIONNet investment in capital assets 461,856,742 30,480,278 492,337,020 29,919,562 Restricted for: Debt service 32,030,674 24,852,030 56,882,704 - Impact fees 55,447,501 - 55,447,501 - Renewal and replacement 17,447,080 2,004,067 19,451,147 - Landfill closure - 26,635,955 26,635,955 - Other purposes 6,886,211 - 6,886,211 - Unrestricted 37,910,196 12,424,323 50,334,519 51,692,487

Total net positon 611,578,404$ 96,396,653$ 707,975,057$ 81,612,049$


PASCO COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES, AND CHANGES

IN NET POSITION - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016

D-13





OPERATING REVENUES Charges for services 110,031,611$ 47,338,103$ 157,369,714$ 60,733,187$

OPERATING EXPENSES Personal services 25,242,461 3,840,269 29,082,730 2,732,690 Contractual services 32,197,417 19,280,463 51,477,880 29,024,220 Travel 15,264 6,100 21,364 3,642 Materials and supplies 5,851,560 1,066,880 6,918,440 4,547,195 Heat, light and power 4,808,084 200,819 5,008,903 45,032 Equipment rental and maintenance 4,111,923 645,782 4,757,705 939,238 Communications 200,158 21,954 222,112 9,941 Administrative charge from General Fund 1,680,108 156,735 1,836,843 2,658,783 Health Insurance - - - 8,795,526 Current charges/stop loss fees - - - 1,961,435 Depreciation 30,623,812 4,325,541 34,949,353 6,146,985 Miscellaneous 2,496,101 685,365 3,181,466 21,893 Total operating expenses 107,226,888 30,229,908 137,456,796 56,886,580

Operating income 2,804,723 17,108,195 19,912,918 3,846,607

NONOPERATING REVENUES (EXPENSES) Interest and other earnings 2,684,388 678,397 3,362,785 109,623 Interest and debt service charges (9,945,913) (2,146,574) (12,092,487) - Net amortization of bond premium (discount) 672,481 249,050 921,531 - Loss on sale of capital assets (11,527) - (11,527) - Miscellaneous 478,234 121,496 599,730 725,146 Total nonoperating revenues (expenses) (6,122,337) (1,097,631) (7,219,968) 834,769

Income (loss) before contributions and transfers (3,317,614) 16,010,564 12,692,950 4,681,376

Capital grants and contributions 32,995,306 - 32,995,306 800,969

Transfers in 88,250 - 88,250 2,290,666 Transfers out - (20,000) (20,000) (1,200,000) Change in net position 29,765,942 15,990,564 45,756,506 6,573,011

Net position - beginning 581,812,462 80,406,089 662,218,551 75,039,038

Net position - ending 611,578,404$ 96,396,653$ 707,975,057$ 81,612,049$


PASCO COUNTY, FLORIDA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS


D-14





CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 114,107,689$ 47,388,470$ 161,496,159$ 1,342,250$ Receipts from employees - - - 1,937,724 Receipts from interfund services provided - - - 55,168,149 Payments to suppliers for goods and services (41,834,796) (23,359,005) (65,193,801) (41,900,627) Payments for interfund services used (5,605,567) (760,847) (6,366,414) (4,907,109) Payments for personal services (22,559,150) (3,069,855) (25,629,005) (2,553,752) Payments for other operating activities (1,583,369) (685,365) (2,268,734) - Net cash provided by operating activities 42,524,807 19,513,398 62,038,205 9,086,635

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in 88,250 337,533 425,783 1,090,666 Transfers out (357,533) - (357,533) - Net cash provided by (used for) noncapital financing activities (269,283) 337,533 68,250 1,090,666

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal payments - bonds and notes (5,160,000) (4,505,000) (9,665,000) - Interest and fiscal charges paid (13,372,519) (1,700,954) (15,073,473) - Proceeds from sale of assets 510,073 121,496 631,569 707,234 Acquisition and construction of capital assets (39,826,100) (1,482,243) (41,308,343) (11,707,947) Capital grants and contributions 32,995,306 - 32,995,306 - Net cash used for capital and related financing activities (24,853,240) (7,566,701) (32,419,941) (11,000,713)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the sale of investment securities 18,116,892 46,931,375 65,048,267 3,673,319 Purchase of investment securities - (554,173) (554,173) - Investment income 2,684,388 678,397 3,362,785 131,475 Net cash provided by investing activities 20,801,280 47,055,599 67,856,879 3,804,794

Net increase in cash and cash equivalents 38,203,564 59,339,829 97,543,393 2,981,382

Cash and cash equivalents at October 1, 2015 128,545,513 27,090,114 155,635,627 44,495,910 Cash and cash equivalents at September 30, 2016 166,749,077$ 86,429,943$ 253,179,020$ 47,477,292$

Reconciliation of cash and cash equivalents:

Unrestricted cash and cash equivalents 9,938,837$ 67,534,163$ 77,473,000$ 47,477,292$ Restricted cash and cash equivalents - current 117,730,805 18,870,095 136,600,900 - Restricted cash and cash equivalents - noncurrent 39,079,435 25,685 39,105,120 -

166,749,077$ 86,429,943$ 253,179,020$ 47,477,292$


PASCO COUNTY, FLORIDA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS


D-15





Reconciliation of operating income to net cash provided by operating activities: Operating income 2,804,723$ 17,108,195$ 19,912,918$ 3,846,607$

Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 30,623,812 4,325,541 34,949,353 6,146,985 Claim settlement - - - 17,912 Bad debt expense 991,377 - 991,377 - Changes in assets and liabilities: (Increase) decrease in accounts receivable 3,277,543 (36,198) 3,241,345 (44,253) (Increase) decrease in due to/ from other funds - - - 512,446 (Increase) decrease in due from other governments 993,092 - 993,092 2,943 (Increase) decrease in inventory (35,344) - (35,344) - (Increase) in prepaid items (280) (182) (462) - Decrease in other assets - 14,509 14,509 480,200 Increase (decrease) in vouchers payable 1,459,775 (1,800,909) (341,134) (1,599,266) Increase (decrease) in accrued liabilities 183,514 51,978 235,492 (41,484) Decrease in claims payable - - - (432,414) Increase (decrease) in compensated absences 16,207 11,618 27,825 (15,994) (Decrease) in due to other governments (78,645) (380) (79,025) - Increase (decrease) in unearned revenue (1,090,412) 86,565 (1,003,847) (23,463) Increase (decrease) in deposits 895,855 (12) 895,843 - Increase in other post employment benefits 240,145 410,519 650,664 - Increase in net pension liability and

related deferred items 2,243,445 296,299 2,539,744 236,416 Decrease in estimated landfill closure costs - (954,145) (954,145) - Total adjustments 39,720,084 2,405,203 42,125,287 5,240,028

Net cash provided by operating activities 42,524,807$ 19,513,398$ 62,038,205$ 9,086,635$

Noncash capital activities: Contributed capital assets -$ -$ -$ 800,969$ Capital asset purchases in contracts payable 2,620,787 96,500 2,717,287 -

Total noncash capital activities 2,620,787$ 96,500$ 2,717,287$ 800,969$

PASCO COUNTY, FLORIDA STATEMENT OF FIDUCIARY NET POSITION - AGENCY FUNDS

SEPTEMBER 30, 2016

D-16

TOTALAGENCY FUNDS

ASSETS

Cash and cash equivalents 23,546,157$ Investments 1,546,589 Total assets 25,092,746$

LIABILITIES

Vouchers payable 536$ Due to other governments 11,490,814 Deposits 13,601,396 Total liabilities 25,092,746$


NOTES TO FINANCIAL STATEMENTS

PASCO COUNTY, FLORIDANOTES TO THE FINANCIAL STATEMENTS

September 30, 2016

INDEX

Note Page

1. Summary of Significant Accounting Policies E-1

A. Reporting Entity E-1B. Basic Financial Statements E-4C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation E-5D. Cash, Cash Equivalents, and Investments E-7E. Receivables, Payables, and Amounts Due From/Due To E-8F. Inventories E-8G. Restricted Assets E-8H. Capital Assets E-9I. Deferred Outflows/Inflows of Resources E-9J. Long-term Obligations and Amortization E-10K. Unearned Revenues E-10L. Fund Equity E-10M. Pension Costs E-12N. Compensated Absences E-12O. Property Taxes E-12P. Adoption of New Accounting Principle E-12Q. Future Accounting Pronouncements E-13

2. Budgets and Budgetary Data E-14

3. Cash, Cash Equivalents and Investments E-16

A. Insurance and Collateralization of Demand Deposits E-17B. Investments E-17C. State Board of Administration (“SBA”) Investment Holdings E-19D. Reconciliation of Cash and Cash Equivalents and Investments

to Basic Financial Statements E-19E. Fair Value Measurements E-19

4. Accounts and Notes Receivable and Due From Other Governments E-21

A. Account and Notes Receivable E-21B. Due from Other Governments E-22

5. Payables and Due To Other Governments E-22

A. Payables E-22B. Due To Other Governments E-23

6. Interfund Balances and Interfund Transfers E-24

A. Interfund Balances E-24B. Interfund Transfers E-25

PASCO COUNTY, FLORIDANOTES TO THE FINANCIAL STATEMENTS

September 30, 2016

INDEX (CONTINUED)

Note Page

7. Capital Assets E-26

A. Captial Assets Activity E-26B. Depreciation Expense E-29

8. Capitalization of Interest E-29

9. Long-Term Liabilities E-30

A. Changes in Long-Term Liabilities E-30B. Debt Service Requirements E-32C. Debt Issues E-33D. Other Long-term Liabilities Matters E-37

10. Due From Tampa Bay Water E-38

11. Restricted Assets of Enterprise Funds E-39

12. Enterprise Funds' Restricted Net Position E-40

13. Landfill Closure and Long-term Care Costs - Solid Waste Disposal E-40

14. Pollution Remediation E-41

15. Employee Retirement Plans E-42

A. Plan Descriptions E-42

16. Other Postemployment Benefits (OPEB) E-52

A. Plan Description E-52B. Funding Policy E-52C. Annual OPEB Cost and Net OPEB Obligation E-54D. Funded Status and Funding Progress of OPEB Plans E-55E. Actuarial Methods and Assumptions E-56

17. Risk Management E-56

18. Expenditures in Excess of Appropriations E-58

19. Deficit Fund Equity E-59

20. Commitments, Contingencies and Other Matters E-60

21. Fund Balances E-61

PASCO COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2016

E-1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements in this report have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) as applied to governmental units. The Governmental Accounting Standards Board (“GASB”) is the standard-setting body for governmental accounting and financial reporting. The following is a summary of Pasco County’s significant accounting policies. The following is a brief overview of major components of the current reporting model, as prescribed by GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments:

Management’s Discussion and Analysis This is a narrative introduction and analytical overview of the County’s financial activities and is similar to the analysis provided in private sector annual reports.

Government-wide Financial Statements These financial statements are prepared using full accrual accounting for all of the County’s activities. This approach includes not just current assets and liabilities but also capital assets and long-term liabilities. Accrual accounting also reports all of the revenues and costs of providing services each year, not just those received or paid in the current year or soon thereafter. Included in the government-wide financial statements are the following:

Statement of Net Position This statement is designed to display the financial position of the County, as to both its government and business-type activities. In this statement, the County reports all capital assets, including infrastructure acquired since 1980. The net assets of the County are reported in three categories: net investment in capital assets, restricted; and unrestricted. Statement of Activities This statement reports revenues and expenses in a format that focuses on each of the government’s functions. It identifies the extent to which each function draws from the general revenues of the County or is self-financing through program revenue (fees and intergovernmental aid).

A. Reporting Entity Pasco County (the “County”), founded in 1887, is a non-chartered political subdivision of the State of Florida and is authorized the power of self-government by the Constitution of the State of Florida and Florida Statutes. The Board of County Commissioners (the “Board”) is the legislative and governing body of the County. A County Administrator is appointed by the Board and is responsible for administrative and budgetary control of the resources of the Board. The Constitution of the State of Florida also provides for five Constitutional Officers with specific duties and reporting responsibilities prescribed by Statute. These Officers are as follows: Clerk of Circuit Court and County Comptroller (“Clerk & Comptroller”), Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector. The Constitutional Officers and the Board maintain separate accounting records and budgets. Annual operating budgets of the Clerk & Comptroller, Sheriff, and Supervisor of Elections are submitted to the Board for approval, as the Board’s share of the funding for the operations of these Officers is provided primarily from general revenues of the County and is supplemented by fees charged by these Officers pursuant to Statute. The budgets of the Property Appraiser and the Tax Collector are submitted to the State’s Department of Revenue for approval. The budget for court-related functions of the Clerk & Comptroller’s operations is submitted to and approved by the Florida Clerks of Court Operations Corporation, a public corporation created under Section 28.35, Florida Statutes.


SEPTEMBER 30, 2016

E-2

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Reporting Entity (Continued) Separate financial reports are prepared for each of the Constitutional Officers. The financial statements in this report represent a combination of those separate financial reports, together with the operations of the Board. The Board and the Constitutional Officers constitute the Pasco County primary government. As required by generally accepted accounting principles, these financial statements comprise the Pasco County reporting entity, which includes the primary government and its component units. The process of evaluating potential component units involves the application of criteria set forth in GASB Statement No. 14, The Financial Reporting Entity, GASB Statement No. 39, Determining Whether Certain Organizations are Component Units (an amendment of GASB Statement No. 14) and GASB Statement No. 61, The Financial Reporting Entity: Omnibus. In accordance with the criteria of GASB Statement No. 14, component units are organizations for which the primary government is financially accountable, or other organizations, for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. GASB Statement No. 39 provides additional guidance to determine whether certain organizations for which the primary government is not financially accountable should be reported as component units based on the nature and significance of their relationship with the primary government. Generally, it requires reporting, as a component unit, an organization that raises and holds economic resources for the direct benefit of a governmental unit. Based on the aforementioned criteria, the following determinations have been made:

Discretely Presented Component Unit

Pasco County Housing Finance Authority The Pasco County Housing Finance Authority was created by County ordinance as a public body corporate and politic under authority granted by Sec. 159.604, Florida Statutes. The Housing Finance Authority functions to alleviate a shortage of housing and capital for investment in housing within the territorial boundaries of Pasco County. The Board appoints all members of the Housing Finance Authority and may remove members without cause. The Board is empowered to terminate the Housing Finance Authority and may, at its sole discretion, and at any time, alter or change the structure, organization, programs, or activities of the Authority. All rules, regulations, and program guidelines of the Authority are effective only upon approval by the Board. Any and all fees earned by the Authority are required to be placed in a separate fund and the Board shall determine how such funds are to be used; funds are to be used only for low and moderate income housing purposes in Pasco County. The component unit column in the government-wide financial statements includes the financial data of the Pasco County Housing Finance Authority.


SEPTEMBER 30, 2016

E-3


A. Reporting Entity (Continued)

J. “Ben” Harrill Villages of Pasadena Hills Stewardship District The J. “Ben” Harrill Villages of Pasadena Hills Stewardship District (the “District”) was created and incorporated as a public body corporate and politic, a limited, special-purpose dependent district, under Chapters 125 and 189, Florida Statutes, and as defined in the Pasco County Land Development Code (the “Code”). The District functions to provide a framework for the delivery of infrastructure, facilities and services to accommodate growth, as well as the financing and oversight of lands, within the District boundaries. The governing board of the District is the Board of Supervisors, which is the Pasco County Board of County Commissioners. The Board exercises general and special powers as provided in the Code and District charter, respectively, as well as other powers, authority, and functions in accordance with Chapter 189, Florida Statutes. The District will remain in existence until terminated and dissolved pursuant to amendment to the Code by the Board, after retirement of any bonds or other obligations of the District. There were no financial activities conducted by the District during the year. However, under current reporting entity criteria, any future activity of the District would be included by the discrete presentation method. There are no separately issued financial statements for these discretely presented component units.

Related Organizations

Pasco County Health Facilities Authority The Pasco County Health Facilities Authority was created by County ordinance as a public body corporate and politic under Sec. 154.207, Florida Statutes. It functions to assist health facilities in the acquisition, construction, financing, and refinancing of projects within Pasco County. Pasco County Educational Facilities Authority The Pasco County Educational Facilities Authority was created by County resolution as a public body corporate and politic under authority granted by Sec. 243.21, Florida Statutes. The Educational Facilities Authority functions to assist institutions of higher education in the construction, financing, and refinancing of facilities or projects. While the Board appoints the members of these authorities, and may abolish the authorities by ordinance or resolution, the Board is not able to impose its will on these organizations. In addition, the Board is not able to gain access to their economic resources and the authorities are neither financially accountable to nor fiscally dependent upon the Board. Consequently, these related organizations are not component units and are not included in the accompanying financial statements.


SEPTEMBER 30, 2016

E-4


B. Basic Financial Statements The County’s Basic Financial Statements consist of the government-wide financial statements (based on the County as a whole) and the fund financial statements, with the focus on the County, as a whole, as well as on its major individual funds. Government-wide Financial Statements The government-wide financial statements include the statement of net position and the statement of activities. These statements report information on the government’s activities as a whole, which include the primary government and its component unit. For the most part, the effect of interfund activity has been eliminated from these statements in order to avoid a distortion of financial results. Net residual amounts due between governmental and business-type activities are presented as internal balances on the Statement of Net Position where they are eliminated in the total primary government column. Fiduciary funds of the government are also excluded from this presentation since their resources are not available for government funding purposes. The Statement of Net Position reports all financial and capital resources of the governmental and business-type activities. It is presented in a net position format (assets and deferred outflows, less liabilities and deferred inflows, equal net position) and is shown with three components: net investment in capital assets, restricted net assets; and unrestricted net assets. The Statement of Activities reports functional categories of programs provided by the County, and demonstrates the degree to which the direct expenses of a given function are offset by program revenues. In addition, the County chooses to eliminate indirect costs between governmental activities to avoid a “doubling up” effect. Program revenues are classified into three categories: charges for services; operating grants and contributions; and capital grants and contributions. Charges for services refer to direct recovery of costs from customers for services rendered, such as those for emergency services, libraries, court operations, etc. Grants and contributions refer to revenues restricted for specific programs whose use may be restricted further to operational or capital items. The general revenues section displays revenue collected which helps support all functions of Pasco County government and contribute to the change in the net position for the fiscal year. General revenues include all taxes. Fund Financial Statements The fund financial statements appear after the government-wide financial statements and report additional and detailed information about Pasco County’s operations for its major funds, individually, and nonmajor funds, in the aggregate, for governmental, proprietary and fiduciary fund types. A major fund is one that meets the criteria set forth in GASB Statement No. 34 or one which the County considers to be of particular importance. If neither of these conditions exists, funds are considered to be nonmajor funds. Included are budgetary comparison statements, which report the County’s original budget together with the comparison of final budget and actual results. In addition, reconciliations are provided that convert the results of governmental fund accounting to the government-wide presentation.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus is used to describe the types of transactions and events that are reported, or measured. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements and to the timing of the measurements made, regardless of the measurement focus applied. The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, respectively. Under the economic resources measurement focus, net position (total assets and deferred outflows less total liabilities and deferred inflows) is measured. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned and expenses are recognized in the period incurred. 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 operating revenues of the County’s enterprise funds, the Water and Sewer Unit and the Solid Waste Disposal and Resource Recovery System, are charges for services to customers. Operating expenses of these operations include salaries, contractual services, materials and supplies, utilities, equipment rental and maintenance, communications, administrative charges, and depreciation. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. In addition, when both restricted and unrestricted resources are available for use, it is the County’s policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted assets are available. All governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, under this measurement focus, only current assets, except as noted below, and current liabilities are included on their balance sheets, and the reported fund balances provide an indication of available spendable or appropriable resources. Statements of Revenues, Expenditures and Changes in Fund Balances report increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables due in governmental funds are reported on their balance sheets. However, recognition of governmental fund type revenues represented by these noncurrent receivables is deferred until they become current receivables since they do not represent "available spendable resources" in the spending measurement focus used for governmental funds. All governmental funds follow the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual; that is, measurable and available to finance expenditures of the current period. Available means collectible within the current period or soon enough thereafter to be used 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, except for grant revenues for which the collection period is 365 days. Expenditures are recorded when the related liability is incurred except for: (1) principal and interest on general long-term debt, which are recognized when due; (2) the noncurrent portion of accrued compensated absences, which is recorded as a long-term liability on the government-wide financial statements; and (3) prepaid items, reported only on the balance sheet when they occur, and do not affect expenditures.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) In applying the susceptibility-to-accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of these revenues. In one, monies must be expended for the specific purpose or project before any amounts will be paid to the County; therefore, revenues are recognized based upon the expenditures recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and are substantially irrevocable, the exception being a failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt, or earlier if they meet the availability criterion. Licenses and permits and miscellaneous revenues (except investment earnings) are not recorded until actually received, as, generally, these revenues are not measurable and available until that time. Property taxes and investment earnings are recorded as earned since they are considered to be measurable and available. Special assessments are measurable when they are levied. They become available when they are due as long as the County receives them soon enough after year-end to pay current liabilities. Amounts that are measurable but not available are recorded as deferred inflows. Major and Nonmajor Funds GASB Statement No. 34 establishes criteria for the determination of major funds. The nonmajor funds are combined in a column in the fund financial statements and are detailed in the combining statements. Major Funds of the County: The following governmental funds are reported as major funds:

General Fund The General Fund is the County’s primary operating fund. It accounts for all financial resources of the County, except for those required to be accounted for in another fund. Penny for Pasco Fund This fund is to account for construction costs of renovations, additions, or new construction of various government facilities of diverse types and uses. Financing is provided through a local option sales surtax and the interest revenue earned. This fund is in accordance with Chapter 102 of the County Code of Ordinance (§ 102 -205) and Section 212.054, Florida Statutes.

Both of the County’s enterprise funds are reported as major funds:

Water and Sewer Unit and Solid Waste Disposal and Resource Recovery System Funds These funds account for the financing of their respective services to the general public where all or most of the costs involved are paid in the form of charges to the users of such services.


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C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

Nonmajor Funds In addition to those funds that are reported as major, the County also reports as nonmajor all funds that are included in the following fund types:

Special Revenue Funds These funds are used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditure for specified purposes. Debt Service Funds These funds are used to account for the accumulation of resources for, and the payment of, principal, interest and related costs of governmental activities long-term debt. Capital Projects Funds These funds account for resources provided by transfers from the General Fund that are used for the acquisition or construction of capital facilities and other projects (other than those financed by Proprietary Fund Types), as well as bond proceeds.

In addition, the County reports the following:

Internal Service Funds These funds account for the County insurance, County self-insurance, Clerk & Comptroller’s insurance, Sheriff’s Health Insurance, and equipment service operations that provide respective services and commodities to other operations of the County. Agency Funds These funds account for assets and liabilities held in an agency capacity for other governments and individuals.

D. Cash, Cash Equivalents, and Investments Cash, cash equivalents and investments consist of cash on hand (petty cash), demand deposits, deposits with the Florida State Board of Administration’s (“SBA”) Florida PRIME and deposits with the Florida Local Government Investment Trust (“FLGIT”). In addition, the County considers short-term, highly liquid investments with a maturity of three months or less when purchased, that are both readily convertible to cash and so near their maturity that any changes in interest rates would cause only immaterial risk of change in value, as cash equivalents. The County pools substantially all cash and investments, except for those situations requiring separate cash and investment accounts in accordance with legal restrictions. Each fund’s equity in pooled cash and investments is stated at the respective fund's contributed cost plus earnings thereon. Earnings from pooled cash and investments are allocated to each fund based on a three-month average of the equity balance of each fund. In fiscal 2016 deposits earned interest at the following rates: SBA’s Florida PRIME, .27% to .78%; FLGIT Investment Trust Fund (reported at NAV) .83% to .93% (SEC yield); FLGIT Day to Day Fund (reported at NAV) .83% to .97%; and money market funds at .10%.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. Cash, Cash Equivalents, and Investments (Continued) The County accounts for its investments in accordance with the provisions of GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools and GASB Statement No. 72, Fair Value Measurement and Application. This statement requires governmental entities to report investments at fair value (see Note 3). All changes in fair value of investments are recognized as gains or losses in the Statement of Activities. The SBA’s Florida PRIME is a 2a7-like pool and is, therefore, reported at its actual pooled share price (its value) as the pool account balance (amortized cost) is the same as its fair value. A 2a7-like pool is an external investment pool that is not registered with the SEC as an investment company, but nevertheless has a policy that it will, and does operate in a manner consistent with the SEC's Rule 2a7. Rule 2a7 allows SEC-registered mutual funds to use amortized cost to report net assets to compute share prices if certain conditions are met (see Notes 3.B. and 3.C.). For purposes of the statement of cash flows, investments in money market funds are considered cash and cash equivalents. E. Receivables, Payables, and Amounts Due From/Due To Trade accounts receivable and various payables of the County are recorded in the government-wide, and in the governmental and proprietary fund financial statements. In proprietary fund types, accounts receivable are recorded with appropriate allowances for uncollectible accounts, which totaled approximately $5,143,000 at September 30, 2016. Related revenues are recognized as earned. In governmental funds, accounts receivable are recorded with appropriate allowances for uncollectible accounts, which totaled approximately $71,023,000 at September 30, 2016, primarily related to ambulance billings. In governmental fund types, amounts generated as a result of operations of the County are not recognized as revenue until the amounts are both measurable and available. In addition, a receivable was recorded and revenue recognized in the Water and Sewer Unit Fund for estimated unbilled consumption at year-end. Such unbilled receivables totaled approximately $6,746,000 at September 30, 2016. Activities between funds resulting in balances at year-end are reported as “Due From” and “Due To” amounts and represent interfund loans. Any residual balances outstanding between governmental and business-type activities are reported in the government-wide Statement of Net Position as internal balances. F. Inventories Inventories are determined by physical count and are stated at average cost using a moving average cost basis. Purchases of inventories for governmental fund types are reported as expenditures when used (consumption method). Inventories for governmental funds are reported on the balance sheet as an asset of their respective funds with a corresponding classification as a nonspendable amount in fund balance since they do not represent “available spendable resources”. Inventories of proprietary fund types, consisting primarily of operating materials held for consumption, are reported as an expense when consumed in the operations of the fund. Inventories that consist of homes held for resale are stated at cost. G. Restricted Assets Certain assets are classified as restricted on the Statement of Net Position because of requirements imposed by law, regulation, creditors, grantors, contributors or other controlling provisions.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (roads, streets, bridges and sidewalks) acquired subsequent to October 1, 1980, as well as intangible assets acquired subsequent to October 1, 2009, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund financial statements. Capital assets are defined as those assets with an initial, individual cost of $1,000 or more ($5,000 in the case of intangible assets) and a useful life of at least one year. Capital contributions or donations are recorded at their estimated fair value at the time received. The cost of normal maintenance and repairs that do not add to the value of a capital asset or materially extend its useful life are not capitalized. Depreciation (termed amortization for intangible assets with identifiable useful lives) is recorded on capital assets on a government-wide basis. Capital outlays of proprietary funds are recorded as capital assets that are depreciated over their estimated useful lives on a straight-line basis on both the fund basis and the government-wide basis. Depreciation is provided over the following estimated useful lives (straight-line method):

Assets YearsBuildings 20 - 50Improvements Other than Buildings 10 - 40Machinery and Equipment 3 - 10Infrastructure 35 -40Intangibles:

Computer Software 3 - 5Easements and Rights-of-Ways See (1)

(1) If the value is separable from the underlying land, the useful life is the shorter of the legal or the estimated useful life; if the life is indefinite or unlimited, then it is not amortized. If the value is inseparable from the underlying land, it is not amortized.

I. Deferred Outflows/ Inflows of Resources In addition to assets, the statement of net position and the balance sheet includes a separate section for the deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County has multiple items that qualify for reporting in this category including the deferred charge on bond refunding and pension related items such as: differences between expected and actual experience, changes in actuarial assumptions, net difference between projected and actual earnings on pension plan investments, changes in proportion and differences between the County’s contributions and proportionate share of contributions, and the County’s contributions subsequent to the measurement date, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. A deferred charge on bond refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other amounts will be recognized as increases in pension expense in future years. In addition to liabilities, the statement of net position and the balance sheet include a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.


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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Deferred Outflows/ Inflows of Resources (Continued) The County has multiple items that qualify for reporting in this category including differences between expected and actual experience, net difference between projected and actual earnings on pension plan investments, and changes in the proportion and differences between the County’s contributions and proportionate share of contributions, relating to the Florida Retirement System Pension Plan and the Retiree Health Insurance Subsidy Program. The County also has several items, which arise only under a modified accrual basis of accounting that qualified for reporting in this category. Accordingly, the items are reported in the governmental fund’s balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues and charges for emergency medical services. The amounts are deferred and recognized as an inflow of resources in the period in which the amounts become available. J. Long-term Obligations and Amortization In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statements of net position, net of unamortized bond discount or premium. Bond discounts and premiums related to Water and Sewer and to Solid Waste Disposal and Resource Recovery System revenue bonds have been capitalized and are amortized over the term of the bonds using the effective interest method. Bond issue costs are expensed/expended in the period incurred. Gains and losses related to the refunding and legal defeasance of certain Water and Sewer and Solid Waste Disposal and Resource Recovery System Fund debt have been recorded as deferred inflows and outflows and are being amortized as a component of interest expense in accordance with GASB Statement No. 65. K. Unearned Revenues Unearned revenues will be recognized as revenue in the fiscal year they are earned. L. Fund Equity Governmental Funds The County follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The objective of this Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Governments are required to classify fund balance in governmental funds as nonspendable, restricted, committed, assigned, and unassigned. In accordance with GASB Statement No. 54, the components of the fund balances of governmental funds are classified as follows:

Nonspendable Fund Balance Amounts that are not in spendable form, either because they are legally or contractually required to be maintained intact or are not spendable as to form, such as long term advances to other funds, inventory or prepaid items.


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L. Fund Equity (Continued) Spendable Fund Balance:

Restricted Fund Balance Amounts that can be spent only for specific purposes because of constitutional provisions, enabling legislation, or because of constraints by third parties, such as creditors, grants, contributors, or laws and regulations of other governments.

Committed Fund Balance Amounts that can be used only for the specific purposes determined by a formal action of the Board of County Commissioners, the County’s highest level of decision making authority, such as an establishment of an ordinance or resolution of the Board. These commitments may be modified or removed by the Board of County Commissioners through an amendment or repeal of the ordinance or resolution. Assigned Fund Balance Amounts reflecting a government’s intended use of resources. This intent must be established by the County Administrator, or his or her designee, and approved by the Board of County Commissioners. These amounts are intended to be used for specific purposes that are neither considered restricted or committed. Unassigned Fund Balance This is the residual spendable funds that have not been classified as restricted, committed, or assigned to a specific purpose.

Fund Balance Policy The Board of County Commissioners has approved a Fund Balance and Reserve Policy that set forth the following reserves of fund balances:

General Fund The policy set forth and adopted by the County is to set aside an emergency fund amount equal to 9.6% of budgeted expenditures for the fiscal year. Committed Reserve The policy states that the following funds should have a reserve balance set aside in order to continue operations in case of an emergency. The reserve balance should equal 16.7% of the budgeted expenses within the fiscal year: Municipal Services Fund, Municipal Fire Service Unit Fund, Building Inspections and Permitting Fund, Road and Bridge Fund, Stormwater Management Fund, Solid Waste Disposal and Recovery System Fund, and Water and Sewer Unit.

Spending Hierarchy The County considers that it has implemented fund balance and spending policies whenever a general fund expenditure is incurred and where restricted, committed, assigned, or unassigned amounts are available to be used. The policy states that the County will first use restricted amounts, then committed amounts, then assigned amounts, and lastly unassigned amounts. For all other funds in which expenditures are incurred and where restricted, committed, assigned, or unassigned amounts are available to be used, the County will first use unassigned amounts, then assigned amounts, then committed amounts, and finally restricted amounts.

When an expense is incurred for purposes for which both restricted and unrestricted net position is available, it is the County’s policy to first use restricted net position and then unrestricted net position.


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M. Pension Costs The County participates in the Florida Retirement System (FRS) defined benefit plan and Health Insurance Subsidy (HIS). In the government-wide and proprietary fund statements of net position, liabilities are recognized for the County’s proportionate share of each pension plan’s net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the FRS defined benefit plan and the HIS and additions to/deductions from FRS’s and HIS’s fiduciary net position have been determined on the same basis as they are reported by the FRS and HIS plans. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms (see Note 15). N. Compensated Absences The County accrues accumulated, unpaid vacation, sick pay and associated fringe benefits when such benefits are earned. Both the current and long-term portion of these compensated absences are accrued and reported in the government-wide and proprietary fund financial statements. In governmental funds, compensated absences that have matured are accrued as current year expenditures. O. Property Taxes Property taxes are levied each November 1, based on assessed values on the previous January 1 (the lien date). Property taxes become due and payable on November 1 of each year. The Pasco County Tax Collector bills and collects property taxes on behalf of the County. The tax rate to finance general governmental services for the fiscal year ended September 30, 2016 was $7.6076 per $1,000 of assessed taxable property value. Taxes become delinquent on April 1 of each year. The County records delinquent property tax collections on a cash basis as delinquent taxes receivable are immaterial at September 30. This is primarily due to an annual tax certificate sale, held each year, which is advertised by law and creates a lien on the property which must be paid in full with interest. P. Adoption of New Accounting Principle The County adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application for the fiscal year ending September 30, 2016. The scope of this Statement addresses accounting and financial reporting issues related to fair value measurements of the assets and liabilities of the governmental entity. This also includes the fair value measurement and hierarchy levels of valuation techniques used to measure fair value for the County’s investments and long term liabilities. Required disclosures are included in Note 3-E. GASB Statement No. 73, “Accounting and Financial Reporting for Pension and Related Assets that are not within the Scope of GASB Statement 68, and Amendments to Certain Provision of GASB Statements 67 and 68”, improves the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. The requirements of this Statement that address financial reporting for assets accumulated for purposes of providing those pensions are effective for fiscal years beginning after June 15, 2015. This portion of the statement has no impact on the County’s financial statements. The requirements of this Statement that amend Statements 67 and 68 are effective for fiscal years beginning after June 15, 2015.


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P. Adoption of New Accounting Principle (CONTINUED) GASB issued GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments which is effective for the fiscal year ending September 30, 2016. This Statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. It also amends Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, paragraphs 64, 74, and 82. This Statement establishes the hierarchy of GAAP for state and local governments and this Statement applies to all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that the County should apply and requires that the County use the sources of authoritative GAAP for financial reporting in a hierarchical descending manner as follows: Officially established accounting principles-GASB Statements, (Category A) GASB Technical Bulletins, GASB Implementation Guides, and literature of the AICPA cleared by the GASB (Category B). Statement No. 79, Certain External Investment Pools and Pool Participants – The Statement establishes accounting and financial reporting standards for qualifying external investment pools that elect to measure for financial reporting purposes all of their investments at amortized costs. This statement will enhance comparability of financial statements among governments by establishing specific criteria used to determine whether a qualifying external investment pool may elect to use an amortized cost exception to fair value measurement. Q. Future Accounting Pronouncements The following statements will be effective for the fiscal year ending September 30, 2017:

Statement 74 – Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans Statement 77 – Tax Abatement Disclosures Statement 78 – Pensions Provided through Certain Multiple-Employer Defined Benefit Pension

Plans Statement 80 – Blending Requirements for Certain Component Units – an amendment of GASB

Statement No. 14 Statement 82 – Pension Issues, an amendment of GASB Statement No. 67,68, and 73

The County has not yet determined the impact of adopting these new pronouncements on its financial statements.


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2. BUDGETS AND BUDGETARY DATA

Chapters 129 and 200, Florida Statutes govern the preparation, adoption, and administration of the County’s annual appropriated budget. Pursuant to those Statutes, the following procedures are followed by the County in establishing the operating budget:

The Clerk & Comptroller, the Sheriff and the Supervisor of Elections must submit a tentative budget to the Board by June 1. In addition to the budget for funding provided by the Board, the Clerk & Comptroller submits a budget, for court-related functions, to the Florida Clerks of Court Corporation, a public corporation, for approval.

The Property Appraiser and the Tax Collector prepare budgets, which are approved by the Florida Department of Revenue.

No later than 15 days after certification of the ad valorem tax roll by the Property Appraiser, the County budget officer submits, to the Board, a tentative budget for the fiscal year beginning on the following October 1.

The public is informed of the proposed budget and tentative millage rates through legal advertising. Public hearings are held to hear comments from the public regarding the budget.

Prior to September 30 the Board legally adopts the budget by resolution.

Budgetary control is generally maintained at the departmental level. The County Administrator acts on intradepartmental budget changes that do not alter a total departmental budget. All other budgetary changes must be submitted to and approved by the Board in open session.

Budgets are monitored at varying levels of classification detail with control generally maintained at the subfunction level. In accordance with Sec. 129.07, Florida Statutes, expenditures cannot legally exceed total appropriations.

Beginning funds available for financing current appropriations are considered in the budgetary process but are not included in the financial statements of the Governmental Fund Types as budgeted revenue.

Formal budgetary integration is employed as a management control device during the year for the General, Special Revenue, Debt Service and Capital Projects Funds.

The actual results of operations in the Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund are presented on a budgetary basis. Adjustments to convert the results of operations at the end of the year from the budgetary basis of accounting to the GAAP basis of accounting for the General Fund are as follows:

Total Total Fund Revenue Expenditures Balance

Budgetary Basis 234,366,984$ 227,282,889$ 68,745,846$

Non-Budgeted ActivityOffice of State Courts Admin. 32 - 3,288 Rural Economic and Development Admin. 67,393 - 88,479 Park Development Fund 67 - 22,097 Education Fund - - 13,726 Environmental Lands Mgmt. 8,879 6,402 2,923,703 S.H.I.P. 3,858,106 4,091,973 435,434

GAAP Basis 238,301,461$ 231,381,264$ 72,232,573$


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2. BUDGETS AND BUDGETARY DATA (CONTINUED)

Budgets for certain Capital Projects Funds, certain Special Revenue Funds, and certain Debt Service Funds are adopted on a basis consistent with GAAP. Budgets were not prepared for the Restore Act, Department of Juvenile Justice, Criminal Justice (“FDLE”), HUD Housing and Recovery NSP II, American Recovery and Reinvestment Act, HUD Housing and Recovery, Department of Community Affairs Grants, Department of Transportation, HUD Housing and Recovery NSP III, U.S. Department of Health and Human Services, Division of Library Services, Department of Elder Affairs (Florida and Federal), U.S. Department of Justice, Transportation Services, Title III-B Transportation, Elderly Nutrition, Department of Homeland Security, Office of Tourism, Trade and Economic Development, Department of Environmental Protection, U.S. Environmental Protection Agency, Multi-Model Transportation, Clerk & Comptroller, Sheriff, and Supervisor of Elections’ special revenue funds. A budget also was not prepared for the Guaranteed Entitlement Refunding Revenue Bonds Series 2003 and Half-Cent Sales Tax Revenue Bonds Series 2003 debt service funds, and the Guaranteed Entitlement CIP capital projects fund.

All appropriations, except those of Special Revenue Funds representing grants that overlap fiscal

years and are budgeted on a life-to-date basis, lapse at year-end, even if encumbered. However, the County intends to honor those purchase orders, contracts and commitments represented by encumbrances outstanding at year-end and reported as assigned fund balance. The subsequent year's appropriations will provide authority to complete these encumbered transactions.

For comparative purposes, certain line items of the budgets in the financial statements have been reclassified to conform to reporting classifications of actual revenues and expenditures. In accordance with Sec. 129.01, Florida Statutes, only 95% of receipts reasonably anticipated from all appropriate sources, including taxes to be levied, are included in the budgetary data for revenues.


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3. CASH, CASH EQUIVALENTS AND INVESTMENTS The County maintains a pooled cash program that is available for use by all Board and Clerk & Comptroller controlled funds. Earnings are allocated to each of the participating funds based on a three-month average of the equity balance of each fund. Cash and investments which must be segregated due to bond covenants or other legal restrictions are not included in this program. Cash, cash equivalents and investments consist of the following at September 30, 2016:

PortfolioMaturity Fair Value Percentage Rating (1)

Petty Cash N/A 48,535$ - N/ACash in Bank N/A 76,068,071 - N/ACash with Fiscal Agent N/A 18,981,251 - N/A

Total Cash 95,097,857

Florida Fixed Income Trust 1 day 1,001,516 0.11% Not ratedMoney Market Fund N/A 11,813,686 1.33% N/AFlorida Prime (SBA) 49.5 Days 138,363,831 15.52% AAAm

(Weighted Avg. Days)Florida Trust (2) 1.61 Years (Avg.) 287,869,460 32.29% AAAfFlorida Trust Day-to-Day (2) 52.76 Days 330,365,441 37.06% AAAmFirst America Treasury

Obligations Money Market Fund N/A 84,670,447 9.50% AAAm

SunTrust ST Leasing CorpMoney Market Fund N/A 20,052,015 2.25% Not rated

U.S. Government and Agency Bonds:Federal Home Loan Bank 10 /15 - 8/17 14,193,089 1.59% N/AUnited States Treasury Notes 11/15 - 9/17 3,068,088 0.35% N/A

Total Cash Equivalents and Investments 891,397,573 100.00%

Total Pooled Cash, Cash Equivalents, and

Investments 986,495,430$

(1) All ratings are Standard & Poor’s (2) Florida Local Government Investment Trust (Florida Trust)


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3. CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED) A. Insurance and Collateralization of Demand Deposits The County’s demand deposits are insured by Federal depository insurance or collateralized in accordance with Chapter 280, Florida Statutes. This Statute establishes a multiple financial institution collateral pool in which all financial institutions holding public deposits together pledge a pool of collateral against all public deposits they collectively hold. In the event of a default or insolvency by a qualified public depository, any loss not covered by deposit insurance or the proceeds from the sale of securities pledged by the defaulting depository is covered by an assessment against the other qualified public depositories of the same type as the depository in default. The assessment is based upon the average share of the public fund deposits held by each of these depositories during the previous 12 months in relation to total public deposits held by all depositories of the same type during the same period. B. Investments The County’s formally adopted Investment Policy, developed in accordance with Section 218.415, Florida Statutes, gives the County the authority to invest surplus public funds in certain permitted investments, suggested limits for investment allocation, issuers and maturities, and prescribes collateralization and safekeeping requirements, among other controls. Credit Risk The Investment Policy limits credit risk by restricting authorized investments to the following:

• State of Florida Local Government Surplus Funds Trust Fund Investment Pool or any

intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act of 1969 as provided in Section 163.01.

• Securities and Exchange Commission registered money market funds with the highest credit

quality rating from a nationally recognized rating agency.

• Interest-bearing time deposits or savings accounts in qualified public depositories as defined in Section 280.02, Florida Statutes.

• Direct obligations of the United States Treasury.

• Federal agencies and instrumentalities.

• Securities of, or other interests in, any open-end or closed-end management-type investment

company or investment trust registered under the Investment Company Act of 1940 provided the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian.

• Other investments authorized by law or by ordinance for a county or a municipality. In

addition to Section 218.415(16), the investment of county funds is authorized by Sections 28.33 and 219.075, Florida Statutes:

Deposits with the State Board of Administration

Qualified Public Depositories

Repurchase Agreements


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3. CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Custodial Credit Risk The Investment Policy, pursuant to Section 218.415(18), Florida Statutes, requires that all securities purchased by, and all collateral obtained by the County, must be held in the County’s name through execution of a third-party custodial safekeeping agreement. Interest Rate Risk The Investment Policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements. In addition, the investment portfolio must be diversified as to maturity. The maximum stated investment maturity is 10 years, and applies to direct obligations of the United States Treasury and to designated United States Government Agencies and Instrumentalities only. At September 30, 2016, maturities of investments in U.S. Government and Agency Bonds ranged from less than 12 months to no more than one year. Concentration of Credit Risk The County diversifies its investments by security type, institution, and maturities in order to reduce overall portfolio risk while attaining acceptable rates of return. To manage concentration of investment risk, the County’s investment policy establishes guidelines for diversification by instruments of the following:

Maximum Issuer LimitLocal Government Surplus Funds Trust Fund (SBA) 100% NAFlorida Prime 25% NAUnited States Government Securities: Direct Obligations of the U.S. Treasury 100% NAUnited States Government Agencies:

Government Nat'l Mortgage Assoc. (GNMA) 50% 25%United State Government Instrumentalities:

Federal Nat'l Mortgage Assoc. (FNMA) 20% 10%Federal Home Loan Bank or District Banks 20% 10%Federal Farm Credit Banks 20% 10%Federal Home Loan Mortgage Corp. (FHLMC) 20% 10%

Certificates of Deposit with Qualified Public Depositories 50% 30%Non-negotiable Interest Bearing Time Deposits 50% 25%Repurchase Agreements 15% 15%Commercial Paper 20% 5%Fixed Income Money Market/Mutual Funds 20% 15%Florida Local Government Investment Trust (FL TRUST) (formerly known as FLGIT) 20% 20%Registered Investment Companies (Mutual Funds) 25% 10%Bankers Acceptance 35% 20%State and Local Taxable and Tax-Exempt 20% 20%Mutual Funds Money Market 40% 25%Mortgage Back Securities 15% 10%


SEPTEMBER 30, 2016

E-19

3. CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED) C. State Board of Administration (“SBA”) Investment Holdings

The SBA administers the Florida Local Government Surplus Funds Trust Fund (Florida PRIME). Florida PRIME’s investment policies can be found at www.sbafla.com/prime. As stated in Note 1.D., Florida PRIME is a 2A-7 like external investment pool and is rated AAAm by Standard & Poor’s. D. Reconciliation of Cash and Cash Equivalents and Investments to Basic Financial Statements

Primary Government:Current Assets

Cash and Cash Equivalents 438,212,764$ Investments 242,507,764 Restricted Assets:

Cash and Cash Equivalents 136,600,900 Noncurrent Assets:

Restricted Cash and Cash Equivalents 39,105,120 Restricted Investments 104,976,136

Agency Funds:Cash and Cash Equivalents 23,546,157 Investments 1,546,589

Total 986,495,430$

E. Fair Value Measurements

GASB Statement No. 72, Fair Value Measurements and Application, sets forth the necessary framework needed to improve financial reporting as it relates to the definition of fair value. GASB Statement No. 72 lays the foundation and establishes the necessary hierarchy in regards to financial reporting for assets and liabilities measured at fair value. The hierarchy will allocate the highest priority for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of fair value hierarchy established under GASB Statement No. 72 are: Level 1 – Investments reflect prices quoted in active markets for identical assets or liabilities in active markets that a government can access at the measurement date. Level 2 – Investments reflect prices that are based on similar observable assets either directly or indirectly, which may include input in markets that are not considered to be active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Investments reflect prices based upon unobservable sources. “NAV” – Investments in Florida Trust represent $618,280,430 in pooled investment programs. No specific investments are assigned to the County, rather the County’s investment is equal to the total fund net asset value times the District’s units as a percentage of total units outstanding. Any dividends or interest of the programs are reinvested. In addition, the County may withdraw either a portion of or its entire investment at any time in the Program.


SEPTEMBER 30, 2016

E-20

3. CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED) Investments classified as Level 1 Inputs are based on a quoted price for identical assets or liabilities in an active market. The fair values of these investments are based on the last reported sales prices on the last day of the fiscal year. Level 1 Inputs are investments that are traded in daily public markets within the United States. Investments that are traded in markets, but are not considered to be actively traded on a daily basis are classified as Level 2 Inputs. Other criteria that satisfy the Level 2 hierarchy are: valued based on quoted market prices, dealer and broker quotations, bid prices, or alternative pricing sources using observable inputs. Inputs used in fair value measurement should be consistent with the inputs that market participants would use in pricing the asset or liability. Investments that commonly fall within the Level 2 hierarchy are: investment grade corporate bonds, mortgage-backed securities, bank loans, and municipal bonds. The fair values of these investments are based on the last reported observable input on the last day of the year. The most complex and lowest priority investments are the Level 3 Inputs. These investments have a substantial unobservable input, as they are rarely traded. Level 3 investments include private equity, distressed debt, and non-standard derivatives. The fair values of these investments are determined by estimation with the best information available. All reasonably available information will be used to determine fair value without incurring an excessive cost for this effort. The County has the following recurring fair value measurements as of September 30, 2016:

Fair Value Measurements

Quoted Prices in SignificantActive Markets for Significant Other UnobservableIdentical Assets Observable Inputs Inputs September 30,

Investments by Fair Value Level (Level 1) (Level 2) (Level 3) 2016Debt Securities Federal Home Loan Bank -$ 14,193,089$ -$ 14,193,089$ United States Treasury Notes - 3,068,088 - 3,068,088 Total Investments by Fair Value Level -$ 17,261,177$ -$ 17,261,177

Investments Measured at Net Asset Value (NAV) Florida Trust 618,280,430 Total Investments Measured at NAV 618,280,430

Money Market Funds 116,536,148

Total Investments at Fair Value 752,077,755

Investments Measured at Amortized Cost State Board of Administration - FL Prime 138,363,831 Florida Fixed Income Trust 1,001,516 Total Investments Measured at Amortized Cost 139,365,347

Total Investments 891,443,102$


SEPTEMBER 30, 2016

E-21

4. ACCOUNTS AND NOTES RECEIVABLE, AND DUE FROM OTHER GOVERNMENTS A. Account and Notes Receivable Accounts and notes receivable at September 30, 2016, for the County’s individual major funds and for the total of nonmajor funds, including related allowances for doubtful accounts, were as follows:

Accounts/ Allowance Accounts/Notes for Notes

Receivable Doubtful ReceivableAccounts Receivable (Gross) Accounts (Net)Major Funds:

General 77,289,837$ 71,023,411$ 6,266,426$ Water and Sewer Unit 17,023,391 4,993,375 12,030,016 Solid Waste Disposal and

Resource Recovery System 5,727,476 150,000 5,577,476 Total, Major Funds 100,040,704 76,166,786 23,873,918

Nonmajor Funds 1,950,853 - 1,950,853

Internal Service Funds 66,472 - 66,472 Total, All Funds 102,058,029$ 76,166,786$ 25,891,243$

Notes ReceivableMajor Fund:

General 20,132,869$ -$ 20,132,869$

Nonmajor Funds 29,521,897 - 29,521,897 Total, All Funds 49,654,766$ -$ 49,654,766$


SEPTEMBER 30, 2016

E-22

4. ACCOUNTS AND NOTES RECEIVABLE, AND DUE FROM OTHER GOVERNMENTS (CONTINUED) B. Due from Other Governments The amounts due from other governments, excluding long-term amounts which are discussed in Note 10, at September 30, 2016, for the County’s individual major funds and for the total of nonmajor funds, were as follows:

AmountsMajor Funds:

General 2,832,397$ Penny for Pasco 2,690,501 Water and Sewer Unit 1,041,654

Total, Major Funds 6,564,552

Nonmajor Funds 16,768,234 Internal Service Funds 6,454

Total, All Funds 23,339,240$

5. PAYABLE AND DUE TO OTHER GOVERNMENTS

A. Payables Payables (vouchers and contracts) at September 30, 2016, for the County’s individual major funds and for the nonmajor funds, are as follows:

Vouchers ContractsMajor Funds:

General 9,687,343$ -$ Penny for Pasco 1,498,416 137,904 Water and Sewer Unit 9,686,629 970,067 Solid Waste Disposal and

Resource Recovery System 4,507,718 29,033 Total, Major Funds 25,380,106 1,137,004

Nonmajor Funds 20,277,441 1,956,588 Internal Service Funds 3,657,379 -

Total, All Funds 49,314,926$ 3,093,592$


SEPTEMBER 30, 2016

E-23

5. PAYABLE AND DUE TO OTHER GOVERNMENTS (CONTINUED)

B. Due to Other Governments Amounts due to other governments at September 30, 2016, for the County’s individual major funds and for the nonmajor funds, are as follows:

AmountsMajor Funds:

General 168,146$ Water and Sewer Unit 17,300 Solid Waste Disposal and

Resource Recovery System 5,247 Total, Major Funds 190,693

Nonmajor Funds 592,388 Total, All Funds 783,081$


SEPTEMBER 30, 2016

E-24

6. INTERFUND BALANCES AND INTERFUND TRANSFERS

A. Interfund Balances Amounts due from/due to other funds and advances to/from other funds at September 30, 2016, were as follows: Due From/To Other Funds

Due From Due ToOther Funds Other Funds

Major Funds:General 18,006,980$ 84,390$

Total, Major Funds 18,006,980 84,390

Nonmajor Funds:Special Revenue 2,191,161 11,958,213 Debt Service - 6,266,793 Capital Projects - 1,888,745

Total, Nonmajor Funds 2,191,161 20,113,751 Total, All Funds 20,198,141$ 20,198,141$

Advance To/From Other Funds

Advance To Advance FromOther Funds Other Funds

Major Funds:General Fund 1,534,000$ -$

Internal Service Funds:Sheriff's Health Insurance - 1,534,000

Total, All Funds 1,534,000$ 1,534,000$

The purpose of these interfund transactions are to:

Provide short-term and long-term loans to other funds Eliminate deficits in the equity in pooled cash Establish necessary reserves to create a health insurance fund


SEPTEMBER 30, 2016

E-25

6. INTERFUND BALANCES AND INTERFUND TRANSFERS (CONTINUED)

B. Interfund Transfers Amounts transferred between funds for the fiscal year ended September 30, 2016 were as follows:

Transfers In Transfers OutMajor Funds:

General 22,583,594$ 17,702,405$ Penny for Pasco - 2,878,552 Water and Sewer Unit 88,250 - Solid Waste Disposal and

Resource Recovery System - 20,000 Total, Major Funds 22,671,844 20,600,957

Nonmajor Funds:Special Revenue 16,633,729 5,943,009 Debt Service 5,129,226 20,732,671 Capital Project 1,751,172 -

Total, Nonmajor Funds 23,514,127 26,675,680

Internal Service Funds: Equipment Service 25,000 - County Insurance 1,200,000 - County Self-Insurance - 1,200,000 Clerk& Comptroller Insurance 564,003 - Sheriff's Health Insurance 501,663 -

Total Internal Service Funds 2,290,666 1,200,000 Total, All Funds 48,476,637$ 48,476,637$

Transfers are used to:

Provide matching funds for grants Provide unrestricted General Fund revenues to finance capital projects which must be accounted for in

another fund Distribute excess amounts to other funds after all debt service reserve amounts have been satisfied for

the period in the debt service funds Provide funding from the Municipal Service Fund to the General Fund for the Sheriff’s road patrol in the

unincorporated area of the County


SEPTEMBER 30, 2016

E-26

7. CAPITAL ASSETS

A. Capital Assets Activity Capital assets activity for the fiscal year ended September 30, 2016 was as follows:

Balance BalanceGovernmental September 30, September 30,

Activities: 2015 Additions Deletions 2016

Capital Assets,not being depreciated:

Land 144,666,457$ 14,738,171$ (50,211)$ 159,354,417$ Intangibles - easements 6,403,262 4,039,556 - 10,442,818 Construction in process 119,176,227 22,179,127 (23,524,329) 117,831,025 Total capital assets

not being depreciated 270,245,946 40,956,854 (23,574,540) 287,628,260

Capital assets, being depreciated:

Buildings 232,446,592 14,419,175 (120,591) 246,745,176 Improvements

other than buildings 40,964,651 14,369,065 - 55,333,716 Equipment 165,439,527 25,713,145 (14,637,161) 176,515,511 Infrastructure 534,814,896 1,002,940 - 535,817,836 Intangibles - other 2,485,331 46,788 - 2,532,119 Total capital assets

being depreciated 976,150,997 55,551,113 (14,757,752) 1,016,944,358

Less accumulateddepreciation for:

Buildings (131,875,071) (9,680,659) - (141,555,730) Improvements

other than buildings (35,672,093) (1,712,048) - (37,384,141) Equipment (112,993,823) (15,180,253) 13,863,968 (114,310,108) Infrastructure (133,608,429) (13,555,088) - (147,163,517) Intangibles (1,353,548) (517,311) - (1,870,859) Total accumulated

depreciation (415,502,964) (40,645,359) 13,863,968 (442,284,355)

Total capital assets,being depreciated, net 560,648,033 14,905,754 (893,784) 574,660,003

Governmental activitiescapital assets, net 830,893,979$ 55,862,608$ (24,468,324)$ 862,288,263$


SEPTEMBER 30, 2016

E-27

7. CAPITAL ASSETS (CONTINUED)

A. Capital Assets Activity (Continued)

Balance BalanceBusiness-type September 30, September 30,

Activities: 2015 Additions Deletions 2016

Water and Sewer Unit:


Land 20,395,338$ 141,792$ (117,578)$ 20,419,552$ Intangibles - easements 2,626,006 - - 2,626,006 Construction in process 53,671,048 20,007,308 (56,311,038) 17,367,318 Total capital assets

not being depreciated 76,692,392 20,149,100 (56,428,616) 40,412,876

Capital assets,being depreciated:

Buildings 119,571,136 994,359 - 120,565,495 Improvements

other than buildings 750,869,992 75,722,854 - 826,592,846 Equipment 5,869,857 384,680 (217,632) 6,036,905 Total capital assets

being depreciated 876,310,985 77,101,893 (217,632) 953,195,246


Buildings (35,153,287) (4,397,623) - (39,550,910) Improvements

other than buildings (290,966,603) (25,607,399) - (316,574,002) Equipment (3,297,515) (618,790) 174,266 (3,742,039) Total accumulated

depreciation (329,417,405) (30,623,812) 174,266 (359,866,951)

Total capital assets,being depreciated, net 546,893,580 46,478,081 (43,366) 593,328,295

Water and Sewer UnitTotal capital assets, net 623,585,972$ 66,627,181$ (56,471,982)$ 633,741,171$


SEPTEMBER 30, 2016

E-28


A. Capital Assets Activity (Continued)

Balance BalanceBusiness-type September 30, September 30,

Activities (Continued): 2015 Additions Deletions 2016

Solid Waste Disposal and Resource Recovery System:


Land 5,371,694$ -$ -$ 5,371,694$ Construction in process 96,932 1,146,490 - 1,243,422 Total capital assets

not being depreciated 5,468,626 1,146,490 - 6,615,116

Capital assets,being depreciated:

Buildings 32,731,290 - - 32,731,290 Improvements

other than buildings 129,779,487 3,952 - 129,783,439 Equipment 1,009,577 923,852 (657,564) 1,275,865 Total capital assets

being depreciated 163,520,354 927,804 (657,564) 163,790,594


Buildings (20,156,170) (868,258) - (21,024,428) Improvements

other than buildings (71,743,037) (3,296,788) - (75,039,825) Equipment (622,710) (160,495) 2 (783,203) Total accumulated

depreciation (92,521,917) (4,325,541) 2 (96,847,456)

Total capital assets,being depreciated, net 70,998,437 (3,397,737) (657,562) 66,943,138

Solid Waste Disposal and Resource Recovery System

Total capital assets, net 76,467,063 (2,251,247) (657,562) 73,558,254

Business-Type ActivitiesTotal Capital Assets, Net 700,053,035$ 64,375,934$ (57,129,544)$ 707,299,425$


SEPTEMBER 30, 2016

E-29


B. Depreciation Expense Depreciation expense in fiscal year 2016 was charged to the functions or programs of the County as follows:

Governmental ActivitiesGeneral government 16,590,565$ Public safety 7,309,199 Physical environment 600,672 Transportation 14,512,087 Economic environment 650 Human services 377,837 Culture and recreation 778,110 Court-related 476,239

Total 40,645,359$

Business-type ActivitiesWater and Sewer Unit 30,623,812$ Solid Waste Disposal and Resource Recovery System 4,325,541

Total 34,949,353$

8. CAPITALIZATION OF INTEREST

Interest costs incurred in enterprise funds during the period of construction of qualifying assets are capitalized as a part of the historical cost of those assets. For the fiscal year ended September 30, 2016, the Water and Sewer Unit Fund incurred total interest expense of $13,453,927 of which $3,521,003 was capitalized; the Solid Waste Disposal and Resource Recovery System Fund incurred total interest expense of $2,014,300 of which $32,050 was capitalized.


SEPTEMBER 30, 2016

E-30

9. LONG-TERM LIABILITIES

A. Changes in Long-Term Liabilities Changes in long-term liabilities for the year ended September 30, 2016 were as follows:

Balance BalanceOctober 1, Issuances/ September 30, Amount Due

2015 Additions Retirements 2016 In One YearGovernmental Activities:$9,985,000 Guaranteed Entitlement

Refunding Revenue Bonds, Series 2013A $ 9,610,000 $ - $ 380,000 $ 9,230,000 $ 390,000

$33,785,000 Half-Cent Sales TaxRefunding Revenue Bonds, Series 2013A 32,710,000 - 1,100,000 31,610,000 1,135,000

$15,310,000 Guaranteed EntitlementRefunding Revenue Bonds, Series 2013B 14,750,000 - 610,000 14,140,000 625,000

Total, Bonded Debt 57,070,000 - 2,090,000 54,980,000 2,150,000

$13,000,000 Note, HUD Section 108, 2006 8,879,000 - 588,000 8,291,000 622,000

$15,080,000 Note,Public Safety, Series 2016 - 15,080,000 755,000 14,325,000 1,700,000

Compensated absences (1) 16,863,459 8,739,325 7,358,757 18,244,027 1,776,627

Total Long-Term Liabilities,Governmental Activities $ 82,812,459 $ 23,819,325 $ 10,791,757 $ 95,840,027 $ 6,248,627

(1) Compensated absences typically have been liquidated in the General and other governmental funds.

Balance Balance

October 1, Issuances/ September 30, Amount Due2015 Additions Retirements 2016 In One Year

Business-Type Activities:

Water and Sewer Unit:$71,160,000 Water and Sewer Refunding

Revenue Bonds, Series 2006 4,255,000$ -$ 1,710,000$ 2,545,000$ 95,000$

$31,715,000 Water and Sewer RevenueBonds, Series 2009A 27,545,000 - 3,450,000 24,095,000 3,680,000

$115,655,000 Water and Sewer RevenueBonds, Series 2009B - "Build AmericaBonds" 115,655,000 - - 115,655,000 -

$54,290,000 Water and Sewer RefundingRevenue Bonds, Series 2014A 54,290,000 - - 54,290,000 1,555,000

$50,620,000 Water and Sewer ImprovementRevenue Bonds, Series 2014B 50,620,000 - - 50,620,000 -

Total bonded debt 252,365,000 - 5,160,000 247,205,000 5,330,000

Less: unamortized bond discount (premium) (7,398,754) - 672,481 (6,726,273) (628,662)

Total bonded debt, net 259,763,754 - 5,832,481 253,931,273 5,958,662

Compensated absences 1,600,334 1,070,757 1,054,550 1,616,541 89,421

Total long-term liabilities,Water and Sewer Unit 261,364,088$ 1,070,757$ 6,887,031$ 255,547,814$ 6,048,083$


SEPTEMBER 30, 2016

E-31

9. LONG-TERM LIABILITIES (CONTINUED)

A. Changes in Long-Term Liabilities (Continued)

Balance BalanceOctober 1, Issuances/ September 30, Amount Due

2015 Additions Retirements 2016 In One YearBusiness-Type Activities:

Solid Waste Disposal and ResourceRecovery System:

$39,150,000 Solid Waste Disposal andResource Recovery System RefundingRevenue Bonds, Series 2011 (AMT) 30,700,000$ -$ 4,505,000$ 26,195,000$ 4,685,000$

$18,170,000 Solid Waste Disposal and Resource Recovery System Refunding Revenue Bonds, Series 2015 18,170,000 - - 18,170,000 -

Total, Bonded Debt 48,870,000 - 4,505,000 44,365,000 4,685,000

Less: unamortized bond discount (premium) (1,281,871) - (105,509) (1,176,362) (212,318)

Total Bonded Debt, Net 50,151,871 - 4,610,509 45,541,362 4,897,318

Compensated Absences 304,678 150,831 139,213 316,296 13,759

Total long-term liabilities,Solid Waste Disposal andResource Recovery System 50,456,549 150,831 4,749,722 45,857,658 4,911,077

Total long-term liabilities,Business-Type Activities 311,820,637 1,221,588 11,636,753 301,405,472 10,959,160

Total Long-Term Liabilities 394,633,096$ 25,040,913$ 22,428,510$ 397,245,499$ 17,207,787$


SEPTEMBER 30, 2016

E-32


B. Debt Service Requirements

Debt service requirements on long-term debt, including current maturities, at September 30, 2016 are as follows:

Governmental Activities:

September 30, 2016 Principal Interest Principal Interest Total

2017 2,150,000$ 2,257,206$ 2,322,000$ 664,438$ 7,393,644$ 2018 2,215,000 2,187,881 2,385,000 605,990 7,393,871 2019 2,305,000 2,100,640 2,450,000 544,628 7,400,268 2020 2,395,000 2,009,583 2,518,000 480,252 7,402,835 2021 2,495,000 1,914,568 2,594,000 412,677 7,416,245

2022-2026 14,050,000 7,999,216 10,347,000 979,871 33,376,087 2027-2031 17,200,000 4,836,942 - - 22,036,942 2032-2035 12,170,000 1,055,830 - - 13,225,830

Total 54,980,000$ 24,361,866$ 22,616,000$ 3,687,856$ 105,645,722$

Business-Type Activities:

Water and Sewer Unit:

September 30, 2016 Principal Interest Total

2017 5,330,000$ 13,219,886$ 18,549,886$ 2018 5,710,000 12,951,761 18,661,761 2019 5,475,000 12,704,948 18,179,948 2020 5,865,000 12,429,911 18,294,911 2021 6,240,000 12,068,154 18,308,154

2022-2026 31,980,000 56,513,762 88,493,762 2027-2031 39,015,000 47,159,376 86,174,376 2032-2036 48,885,000 34,668,937 83,553,937 2037-2041 57,395,000 17,713,533 75,108,533 2042-2045 41,310,000 4,425,750 45,735,750

Total 247,205,000$ 223,856,018$ 471,061,018$

Solid Waste Disposal and Resource Recovery System:

September 30, 2016 Principal Interest Total

2017 4,685,000$ 1,695,843$ 6,380,843$ 2018 4,965,000 1,461,593 6,426,593 2019 5,245,000 1,213,343 6,458,343 2020 5,525,000 951,093 6,476,093 2121 10,170,000 654,520 10,824,520

2022-2025 13,775,000 477,866 14,252,866 Total 44,365,000$ 6,454,258$ 50,819,258$

Total, Business-Type Activities 291,570,000$ 230,310,276$ 521,880,276$

Revenue Bonds Notes Payable

Revenue Bonds

Revenue Bonds


SEPTEMBER 30, 2016

E-33


C. Debt Issues Governmental Activities Governmental Activities

Amount $9,985,000 Guaranteed Entitlement Refunding Revenue Bonds, Series 2013A

Purpose: To advance refund and legally defease all of the outstanding Guaranteed Entitlement Refunding Revenue Bonds, Series 2003.

Range of principal installments: $375,000 to $470,000 ($4,175,000 serial bonds through 2023); $490,000 to $585,000 ($3,220,000 term bonds with mandatory redemptions from 2024 through 2029); $610,000 to $685,000 ($2,590,000 term bonds with mandatory redemptions from 2030 through 2033).

Range of interest rates: 2.0% to 4.0% (serial bonds); 3.75% (2029 term bonds); 4.0% (2033 term bonds).

Source of payments: Guaranteed entitlement and second guaranteed entitlement monies from State of Florida Revenue Sharing Trust Funds.

Year of final maturity: 2033

$33,785,000 Half-cent Sales Tax Refunding Revenue Bonds, Series 2013APurpose: To advance refund and legally defease all of the outstanding Half-cent

Sales Tax Revenue Bonds, Series 2003.Range of principal installments: $1,075,000 to $1,740,000 ($16,305,000 serial bonds through 2025);

$1,830,000 to $2,020,000 ($5,775,000 term bonds with mandatory redemptions from 2026 through 2028); $2,115,000 to $2,575,000 ($11,705,000 term bonds with mandatory redemptions from 2029 through 2033).

Range of interest rates: 2.5% to 5.0% (serial bonds); 5.0% (2028 term bonds); 5.0% (2033 term bonds).

Source of payments: Half-cent local sales tax.Year of final maturity: 2033

$15,310,000 Guaranteed Entitlement Refunding Revenue Bonds, Series 2013BPurpose: To refund the portion of the County's Guaranteed Entitlement Refunding

Revenue Bonds, Series 2003 and pay the cost of issuanceRange of principal installments: $560,000 to $965,000 from 2014 to 2033

Range of interest rates: 2.58%Source of payments: Guaranteed entitlement and second guaranteed entitlement monies from

State of Florida Revenue Sharing Trust Funds.Year of final maturity: 2033


SEPTEMBER 30, 2016

E-34


C. Debt Issues (Continued) Governmental Activities (Continued)

Amount $13,000,000 Housing and Urban Development (HUD) Section 108 Note, Series 2006

Purpose: To provide funding for the Tommytown Neighborhood revitalization project.

Range of principal installments: $394,000 to $1,077,000Interest rate: 4.96 to 5.77%

Source of payments: Pledged future Community Development Block Grant (CDBG) funds and other non Ad Valorem funds as security for the guaranteed loan funds.


$15,080,000 Public Safety Note, Series 2016Purpose: To provide funding for public safety communications equipment.

Range of principal installments: $755,000 to $1,885,000Interest rate: 1.488% per annum

Source of Payments: Pledged local option sales surtax of the "Penny for Pasco" fund and, to the extent necessary, Non-Ad Valorem revenues.


Business-Type Activities - Enterprise Funds

Amount $71,160,000 Water and Sewer Refunding Revenue Bonds, Series 2006

Purpose: To advance refund and legally defease the outstanding Subordinate Water and Sewer Revenue Bonds, Series 2003 (East Pasco Utilities, Inc.) and 2004 (Forest Hills Utilities, Inc.), pay certain issuance costs, and finance certain costs associated with the 2006 Project.

Range of principal installments: $65,000 to $19,965,000Range of interest rates: 3.75% to 5.00% (serial bonds); 4.75% (2031 term bonds); 5% (2036 term

bonds).

Source of payments: Revenues of the Water and Sewer System and available impact fees.

Year of final maturity: 2036Insured by Financial Security Assurance,

Inc. (FSA):Guaranteed payment of principal and interest; insurance is noncancelable.


SEPTEMBER 30, 2016

E-35


C. Debt Issues (Continued)

Business-Type Activities - Enterprise Funds (Continued)

Amount $31,715,000 Water and Sewer Revenue Bonds, Series 2009A

Purpose: To pay the cost of terminating, canceling, and unwinding the County's rights, duties, and obligations under the forward interest Swap Agreement, funding the 2009A Bonds' Reserve Account Requirement in the 2009A Bonds' Reserve Subaccount, and pay certain costs associated with the issuance of the 2009A Bonds.

Range of principal installments: $1,000,000 to $4,570,000Range of interest rates: 3.00% to 5.00%




$115,655,000 Water and Sewer Revenue Bonds, Series 2009B - "Build America Bonds"Purpose: To pay the cost of acquiring, constructing, and erecting a portion of the

2009 Project, funding capitalized interest, funding the 2009B Bonds' Reserve Account Requirement in the 2009B Bonds' Reserve Subaccount, and to pay certain costs associated with the issuance of the 2009B Bonds.

Range of principal installments: $3,455,000 to 12,715,000Range of interest rates: 5.36% to 6.76%




$54,290,000 Water and Sewer Refunding Revenue Bonds, Series 2014APurpose: To advance refund and legally defease certain of the outstanding Water

and Sewer Refunding Revenue Bonds, Series 2006 , and pay certain issuance costs.

Range of principal installments: $1,555,000 to $3,758,000 ($54,290,000 serial bonds with redemptions through 2036).

Range of interest rates: 3.00% to 5.00% (serial bonds).Source of payments: Revenues of the Water and Sewer System and available impact fees.

Year of final maturity: 2036Insured by Assured Guaranty Municipal

Corp (AGM):Guaranteed payment of principal and interest; insurance is noncancelable.


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C. Debt Issues (Continued)

Business-Type Activities - Enterprise Funds (Continued)

Amount $50,620,000 Water and Sewer Improvement Revenue Bonds, Series 2014B

Purpose: To (i) acquire, construct, and erect a portion of the 2014 Project, (ii) fund the 2014 Bonds Reserve Subaccount, and (iii) pay certain issuance costs.

Range of principal installments: $9,310,000 to $10,975,000 ($10,000,000 5.00% term bonds due October 1, 2044 and $40,620,000 4% term bonds due October 1, 2044).

Range of interest rates: 4.00% to 5.00% Source of payments: Revenues of the Water and Sewer System and available impact fees.



$39,150,000Purpose: To advance refund and legally defease the outstanding Solid Waste

Disposal and Resource Recovery System Revenue Bonds, Series 2008A, and terminate the Swap Agreement associated with Series 2008A.

Range of principal installments: $4,505,000 to $5,775,000Range of interest rates: 3.00% to 5.00%

Source of payments: Assessment revenues and net revenues of the Solid Waste Disposal and Resource Recovery System and available impact fees.



$18,170,000Purpose: To advance refund and legally defease the outstanding Solid Waste

Disposal and Resource Recovery System Revenue Bonds, Series 2008D, and to pay certain costs of issuance.

Range of principal installments: $4,395,000 to $4,695,000Range of interest rates: 2.29%

Source of payments: Assessment revenues and net revenues of the Solid Waste Disposal and Resource Recovery System.



Solid Waste Disposal and Resource Recovery System Refunding Revenue Bonds, Series 2011 (AMT)

Solid Waste Disposal and Resource Recovery System Refunding Revenue Bonds, Series 2015


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D. Other Long-term Liabilities Information

Arbitrage Rebate The Tax Reform Act of 1986 generally requires earnings from investments of bond proceeds that exceed the issuer's bond yield to be rebated to the U.S. Treasury at periodic intervals, usually every five years. Computations are performed to determine the yield on the bonds, the yield on the invested funds and the determination of the resulting arbitrage rebate liability. The computation period begins at issue date and extends to the 2016 fiscal year-end. When arbitrage rebate liabilities occur they are included in amounts Due to Other Governments and are charged against interest income. The County had no rebate liability as of September 30, 2016. Legal Debt Limits The Florida Constitution and Pasco County set no legal debt limits. Restrictions The official statements and Board resolutions authorizing the issuance of the bonds contain certain restrictive covenants. The Board of County Commissioners has covenanted that, on a monthly basis, it will deposit specified amounts derived from specific revenue sources into accounts and funds established by resolutions. The deposits into these accounts and funds are used to repay principal and interest coming due on the bonds and to provide sinking funds established for the purpose of retiring term bonds due in future years. The most restrictive of these covenants include rate covenants of not less than 125% of the current Debt Service Requirements and 100% of all reserve and other required payments. Conduit Debt Pasco County, through the Board, has issued various bonded debt to provide financial assistance to private-sector entities for the acquisition, construction and equipping of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. As of September 30, 2016, there were several series of industrial revenue and industrial development bonds outstanding for which the Board was unable to determine the outstanding balances; however, the original aggregate principal amount payable of these bonds was approximately $46.9 million. Additionally, as of September 30, 2016, the Pasco County Housing Finance Authority, a discretely presented component unit, had issued $8.4 million Multifamily Housing Revenue Bonds and $500,000 Taxable Multifamily Housing Revenue Bonds to provide assistance in the construction of an apartment project; the bonds are secured by loan payments and other trust funds. Also, the Pasco County Educational Facilities Authority, a related organization, had issued $60 million Variable Rate Demand Revenue Bonds (the Saint Leo Project) in order to provide financial assistance to Saint Leo University for construction of facilities and retirement of previously issued bond indentures.

Neither the Board, State, nor any political subdivision thereof is obligated in any manner for the repayment of bonds issued by the Pasco County Housing Finance Authority or the Pasco County Educational Facilities Authority. Accordingly, these bonds are not reported as liabilities in the accompanying financial statements.


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10. DUE FROM TAMPA BAY WATER

In May, 1998, the County, along with the counties of Hillsborough and Pinellas, and the cities of New Port Richey, St. Petersburg and Tampa, entered into an interlocal agreement to reorganize the West Coast Regional Water Supply Authority (the "Authority") from which the County purchased the majority of its water. In October 1998, the Authority was reorganized under the new name of Tampa Bay Water, a Regional Water Supply Authority. As part of this agreement, each party conveyed certain assets (consisting primarily of land, equipment, and water rights) to the Authority in exchange for credits to be applied against the cost of purchased water over the next 30 years. These credits are applied on a monthly basis, with interest (4.865%) compounded semi-annually. Pasco County conveyed 6.328 acres at the North Pasco Wellfield, its production capacity at the North Pasco and Starkey Wellfields, and its equity in the Regional System and Cypress Creek Wellfield for a net amount of $32,235,683 ($3,000,000 in cash and $29,235,683 recorded as due from other governments, a receivable that will be received in the form of credits as noted above). These credits are recognized as a reduction of the cost of purchased water as the credits are received from the Authority. These deferred credits are recorded in the Water and Sewer Fund. The amount outstanding at September 30, 2016 totaled $16,580,170 and is receivable in future fiscal years as follows:

Fiscal Year Credits

2017 1,041,654$ 2018 1,092,800 2019 1,146,893 2020 1,204,582 2021 1,265,172

2022-2026 7,346,919 2027-2030 3,482,150

Total Credits 16,580,170$


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11. RESTRICTED ASSETS OF ENTERPRISE FUNDS

Amounts accumulated as restricted assets at September 30, 2016, in the County’s two Enterprise Funds (Water and Sewer Unit Fund, and Solid Waste Disposal and Resource Recovery System Fund, both classified as major funds), in accordance with the terms of bond indentures and state grant requirements, consisted of the following:

Cash and Cash

Equivalents Investments Total Water and Sewer Unit:Cash with Fiscal Agent 10,148,299$ -$ 10,148,299$ Construction Funds 53,259,513 54,304,225 107,563,738 Debt Service 6,720,029 15,202,030 21,922,059 Impact Fees 55,447,501 - 55,447,501 Operations and Maintenance 6,886,211 - 6,886,211 Renewal and Replacement 17,447,080 - 17,447,080 Customer Deposits 6,901,607 - 6,901,607

Total 156,810,240$ 69,506,255$ 226,316,495$

Solid Waste Disposal and Resources Recovery System Cash with Fiscal Agent -$ 8,833,926$ 8,833,926$ Debt Service 13,033,744 - 13,033,744 Renewal and Replacement 2,004,067 - 2,004,067 System Reserve 3,832,284 - 3,832,284 Customer Deposits 25,685 - 25,685 Landfill Closure - 26,635,955 26,635,955

Total 18,895,780$ 35,469,881$ 54,365,661$


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12. ENTERPRISE FUNDS’ RESTRICTED NET POSITION

At September 30, 2016, restrictions of net position in the County’s Enterprise Funds comprised the following:

Solid Wasteand Resource

Water and Recovery Sewer Unit System Total

Debt Service 32,030,674$ 24,852,030$ 56,882,704$ Operations and Maintenance 6,886,211 - 6,886,211 Renewal and Replacement 17,447,080 2,004,067 19,451,147 Impact Fees 55,447,501 - 55,447,501 Landfill Closure - 26,635,955 26,635,955

Total 111,811,466$ 53,492,052$ 165,303,518$

13. LANDFILL CLOSURE AND LONG-TERM CARE COSTS - SOLID WASTE DISPOSAL AND RESOURCE

RECOVERY SYSTEM OPERATIONS

State and federal laws require that Pasco County place a final cover on its landfill sites when it stops accepting waste and that these sites be monitored for 30 years after closure. Although closure and long-term care costs will be paid only near or after the date that the landfills stop accepting waste, the County reports a portion of these costs as an operating expense in each period based on landfill capacity used as of the balance sheet date. For the year ending September 30, 2016, the combined liability for landfill closure and post-closure costs decreased by $954,145. The accrued costs of closure and long-term care as of September 30, 2016 totaled $50,154,759. The estimated total current costs of closure and long-term care remaining to be recognized are $14,952,854 and $35,201,905, respectively. Amounts related to cost are based on an estimate by the County consulting engineer of the cost to perform all closures and long-term care as of September 30, 2016. Actual costs may be higher due to inflation. The amounts in escrow at September 30, 2016 include $21,191,695 for closure and $5,444,260 for long-term care. The total escrow balance of $26,635,955 is reported as restricted investments in the Solid Waste Disposal and Resource Recovery System Fund to fund post-closure costs of the West Pasco Class III, West Pasco Class I-SW-I and SW-II, West Pasco Class I – AI, AII, AIII, and AIV, and East Pasco landfills. The County is required by state and federal laws to make annual contributions to an escrow account to meet financial assurances requirements. At September 30, 2016, the County has funded the total accrual liability for closure and long-term care at approximately 53%, with restricted investments of $26,635,955 held for this purpose. In the event that the annual escrow contributions and interest earnings prove to be inadequate due to inflation, changes in technology, or additional closure and long-term requirement, these costs may need to be covered by charges to future landfill users.


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13. LANDFILL CLOSURE AND LONG-TERM CARE COSTS - SOLID WASTE DISPOSAL AND RESOURCE RECOVERY SYSTEM OPERATIONS (CONTINUED)

The capacity utilized and estimated remaining useful life for each of the County's landfills is as follows:

Estimated Capacity Remaining

Landfills Utilized Life (Years)East Pasco Class I (13 and 107 acres) 100.00% - West Pasco Class I - AI, AII, AIII,AIV 66.39% 14 West Pasco Class III 52.34% 34 West Pasco Class I - SW-I and SW-2 73.81% 60

14. POLLUTION REMEDIATION

GASB 49 provides guidance for estimating and reporting the potential costs of pollution remediation. While GASB 49 does not require the County to search for pollution, it does require the County to reasonably estimate and report a remediation liability when any of the following obligating events has occurred:

Pollution poses an imminent danger to the public and the County is compelled to take action;

The County is in violation of a pollution related permit or license;

The County is named or has evidence that it will be named as a responsible party by a regulator;

The County is named or has evidence that it will be named in a lawsuit to enforce a cleanup; or

The County commences or legally obligates itself to conduct remediation activities.

Site investigation, planning and design, cleanup and site monitoring are typical remediation activities under way in the County. The County has knowledge and expertise to estimate the remediation obligations presented herein based upon prior experience in identifying and funding similar remediation activities. The standard requires the County to calculate pollution remediation liabilities using the expected cash flow technique. Where the County cannot reasonably estimate a pollution remediation obligation, it does not report a liability; however, the County has not identified any of these situations. The remediation obligation estimates that appear in this report are subject to change over time. Cost may vary due to price fluctuations, changes in technology, changes in potential responsible parties, results of environmental studies, changes to statutes or regulations and other factors that could result in revisions to these estimates. Prospective recoveries from responsible parties may reduce the County’s obligation. Capital assets may be created when pollution remediation outlays are made under specific circumstances.


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14. POLLUTION REMEDIATION (CONTINUED)

At September 30, 2016, the County has recorded estimated liabilities of $430,000 as a result of exceedances of certain groundwater quality limits at the East Pasco Sanitary Landfill. The Florida Department of Environmental Protection is requiring further investigation and monitoring to determine whether remediation is necessary. A contract with the County’s Consultant has been executed in the amount of $430,000 to perform investigation and an assessment of the exceedances, in addition to beginning the initial stages of formal closure of this solid waste facility. It is anticipated that the Florida Department of Environmental Protection will issue a Case Closure Letter with all terms and conditions having been complied with and the recorded estimated liability will be removed in fiscal year 2017. The County has not received any other information and does not have any evidence regarding any other violations of a pollution related permit or license. The County has not been named as a responsible party in a lawsuit to enforce a cleanup nor is it aware of any other conditions requiring pollution remediation.

15. EMPLOYEE RETIREMENT PLANS

A. Plan Descriptions

Background The Florida Retirement System (FRS) was created by Chapter 121, Florida Statutes, to provide a defined benefit pension plan for participating public employees. The FRS was amended in 1998 to add the Deferred Retirement Option Program under the defined benefit plan and amended in 2000 to provide a defined contribution plan alternative to the defined benefit plan for FRS members effective July 1, 2002. This integrated defined contribution pension plan is the FRS Investment Plan. Chapter 112, Florida Statutes, established the Retiree Health Insurance Subsidy (HIS) Program, a cost-sharing multiple-employer defined benefit pension plan, to assist retired members of any State-administered retirement system in paying the costs of health insurance. Essentially all regular employees of the County are eligible to enroll as members of the State-administered FRS. Provisions relating to the FRS are established by Chapters 121 and 122, Florida Statutes; Chapter 112, Part IV, Florida Statutes; Chapter 238, Florida Statutes; and FRS Rules, Chapter 60S, Florida Administrative Code; wherein eligibility, contributions, and benefits are defined and described in detail. Such provisions may be amended at any time by further action from the Florida Legislature. The FRS is a single retirement system administered by the Florida Department of Management Services, Division of Retirement, and consists of the two cost-sharing, multiple-employer defined benefit plans and other nonintegrated programs. A comprehensive annual financial report of the FRS, which includes its financial statements, required supplementary information, actuarial report, and other relevant information, is available from the Florida Department of Management Services' Web site (www.dms.myflorida.com). The County’s pension expense totaled $36,646,133 for both the FRS Pension Plan and HIS Plan for the fiscal year ended September 30, 2016. Florida Retirement System Pension Plan Plan Description The Florida Retirement System Pension Plan (FRS Plan) is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees. The general classes of membership are as follows:

Regular Class - Members of the FRS who do not qualify for membership in the other classes.

Elected County Officers Class - Members who hold specified elective offices in local government.

Senior Management Service Class (SMSC) - Members in senior management level positions.


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15. EMPLOYEE RETIREMENT PLANS (CONTINUED)

Florida Retirement System Pension Plan (Continued) Plan Description (Continued)

Special Risk Class - Members who are special risk employees, such as law enforcement officers and firefighters, meet the criteria to qualify for this class.

Employees enrolled in the FRS Plan prior to July 1, 2011, vest at six years of creditable service and employees enrolled in the FRS Plan on or after July 1, 2011, vest at eight years of creditable service. All vested members, enrolled prior to July 1, 2011, are eligible for normal retirement benefits at age 62 or at any age after 30 years of service, except for members classified as special risk who are eligible for normal retirement benefits at age 55 or at any age after 25 years of service. All members enrolled in the FRS Plan on or after July 1, 2011, once vested, are eligible for normal retirement benefits at age 65 or any time after 33 years of creditable service, except for members classified as special risk who are eligible for normal retirement benefits at age 60 or at any age after 30 years of service. Employees enrolled in the FRS Plan may include up to four years of credit for military service toward creditable service. The FRS Plan also includes an early retirement provision; however, there is a benefit reduction for each year a member retires before his or her normal retirement date. The FRS Plan provides retirement, disability, death benefits, and annual cost-of-living adjustments to eligible participants. DROP, subject to provisions of Section 121.091, Florida Statutes, permits employees eligible for normal retirement under the FRS Plan to defer receipt of monthly benefit payments while continuing employment with an FRS participating employer. An employee may participate in DROP for a period not to exceed 60 months after electing to participate, except that certain instructional personnel may participate for up to 96 months. During the period of DROP participation, deferred monthly benefits are held in the FRS Trust Fund and accrue interest. The net pension liability does not include amounts for DROP participants, as these members are considered retired and are not accruing additional pension benefits. Benefits Provided Benefits under the FRS Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement class to which the member belonged when the service credit was earned. Members are eligible for in-line-of-duty or regular disability and survivors’ benefits. The following chart shows the percentage value for each year of service credit earned:


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Florida Retirement System Pension Plan (Continued) Benefits Provided (Continued)

Class, Initial Enrollment, and Retirement Age/Years of Service: % ValueRegular Class members initially enrolled before July 1, 2011

Retirement up to age 62 or up to 30 years of service 1.60Retirement up to age 63 or up to 31 years of service 1.63Retirement up to age 64 or up to 32 years of service 1.65Retirement up to age 65 or up to 33 years of service 1.68

Regular Class members initially enrolled on or after July 1, 2011Retirement up to age 65 or up to 33 years of service 1.60Retirement up to age 66 or up to 34 years of service 1.63Retirement up to age 67 or up to 35 years of service 1.65Retirement up to age 68 or up to 36 years of service 1.68

Elected County Officers 3.00

Senior Management Service Class 2.00

Special Risk RegularService from December 1, 1970, through September 30, 1974 2.00Service on and after October 1, 1974 3.00

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the FRS before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is 3% per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of 3% determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by 3%. FRS Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. Contributions The Florida Legislature establishes contribution rates for participating employers and employees. Effective July 1, 2011, all FRS Plan members (except those in DROP) are required to make 3% employee contributions on a pretax basis. The contribution rates attributable to the County, effective July 1, 2015, were applied to employee salaries as follows: regular employees 7.26%, special risk 22.04%, county elected officials 42.27%, senior management 21.43%, and DROP participants 12.88%. The County’s contributions to the FRS Plan were $22,238,121 for the year ended September 30, 2016.


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15. EMPLOYEE RETIREMENT PLANS (CONTINUED) Florida Retirement System Pension Plan (Continued) Pension Costs At September 30, 2016, the County reported a liability of $326,959,680 for its proportionate share of the FRS Plan’s net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability was based on the County’s contributions received by FRS during the measurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016, relative to the total employer contributions received from all of FRS’s participating employers. At June 30, 2016, the County’s proportion was 0.861563652%, which was an increase of 0.089762926% from its proportion measured as of June 30, 2015. For the year ended September 30, 2016, the County recognized pension expense of $33,540,951 for its proportionate share of FRS’s pension expense. In addition, the County reported its proportionate share of FRS’s deferred outflows of resources and deferred inflows of resources from the following sources:

Deferred DeferredOutflows of Inflows of

Description Resources ResourcesDifferences Between Expected and Actual

Experience 16,656,958$ (2,025,495)$ Changes of Assumptions 99,276,050 - Net Difference Between Projected and Actual Earnings

on Pension Plan Investments 56,232,859 - Changes in Proportion and Differences Between County

Contributions and Proportionate Share of Contributions 13,557,140 (11,487,093) County Contributions Subsequent to the Measurement

Date 6,133,972 - Total 191,856,979$ (13,512,588)$


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Florida Retirement System Pension Plan (Continued) Pension Costs (Continued) $6,133,972 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows:

Year Ended September 30, Amount2017 24,338,572$ 2018 24,338,572 2019 46,261,631 2020 37,697,337 2021 18,863,562

Thereafter 20,710,745 172,210,419$

Actuarial Assumptions The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 2.10% per yearSalary Increases 3.25%, Average, Including InflationInvestment Rate of Return 7.00%

Mortality rates were based on the Generational RP-2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. The long-term expected rate of return on pension plan investments was not based on historical returns, but instead is based on a forward-looking capital market economic model. The allocation policy’s description of each asset class was used to map the target allocation to the asset classes shown below. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption.


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Florida Retirement System Pension Plan (Continued) Actuarial Assumptions (Continued) The target allocation, as outlined in the FRS Plan’s investment policy, and best estimates of arithmetic and geometric real rates of return for each major asset class are summarized in the following table:

AnnualTarget Arithmetic

Asset Class Allocation ReturnCash 1.0% 2.6%Fixed Income 18.0% 3.6%Global Equity 53.0% 7.0%Real Estate (Property) 10.0% 6.6%Private Equity 6.0% 8.9%Strategic Investments 12.0% 4.3%

Totals 100.0%

Assumed Inflation - Mean 2.1% Discount Rate The discount rate used to measure the total pension liability was 7.0% for the FRS Plan. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following presents the County’s proportionate share of the net pension liability for the FRS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:

1% Decrease Current Discount 1% Increase in

Description Discount Rate Rate Discount Rate

FRS Plan Discount Rate 6.00% 7.00% 8.00%County's Proportionate Share of theFRS Plan Net Pension Liability 523,846,515$ 326,959,680$ 163,085,459$

Pension Plan Fiduciary Net Position Detailed information about the FRS Plan’s fiduciary’s net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com.


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Retiree Health Insurance Subsidy Program Plan Description The Retiree Health Insurance Subsidy Program (HIS Plan) is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida Legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month, pursuant to Section 112.363, Florida Statutes. To be eligible to receive a HIS Plan benefit, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare. Contributions The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the contribution rate was 1.66% of payroll pursuant to section 112.363, Florida Statutes. The County contributed 100% of its statutorily required contributions for the current and preceding three years. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event the legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or canceled. The County’s contributions to the HIS Plan were $3,132,295 for the year ended September 30, 2016.

Pension Costs At September 30, 2016, the County reported a liability of $69,170,870 for its proportionate share of the HIS Plan’s net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of July 1, 2016. The County’s proportion of the net pension liability was based on the County’s contributions received during the measurement period for employer payroll paid dates from July 1, 2015 through June 30, 2016, relative to the total employer contributions received from all participating employers. At June 30, 2015, the County’s proportion was 0.593507750%, which was an increase of 0.028221271% from its proportion measured as of June 30, 2015. For the year ended September 30, 2016, the County recognized pension expense of $3,105,182 for its proportionate share of HIS’s pension expense. In addition, the County reported its proportionate share of HIS’s deferred outflows of resources and deferred inflows of resources from the following sources:


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Retiree Health Insurance Subsidy Program (Continued) Pension Costs (Continued)

Deferred DeferredOutflows of Inflows of

Description Resources ResourcesDifferences Between Expected and Actual

Experience -$ (157,547)$ Changes in Actuarial Assumptions 10,854,668 - Net Difference Between Projected and Actual Earnings

on Pension Plan Investments 34,975 - Changes in Proportion and Differences Between County

Contributions and Proportionate Share of Contributions 3,861,840 (873,850) County Contributions Subsequent to the Measurement

Date 819,397 - Total 15,570,880$ (1,031,397)$

$819,397 reported as deferred outflows of resources related to pensions resulting from County contributions to the FRS Plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized as an increase (decrease) in pension expense as follows:

Year Ended September 30, Amount2017 2,412,031$ 2018 2,412,031 2019 2,405,371 2020 2,402,174 2021 2,200,735

Thereafter 1,887,744 13,720,086$

Actuarial Assumptions The total pension liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.60% per yearSalary Increases 3.25%, Average, Including InflationMunicipal Bond Rate 2.85%


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Retiree Health Insurance Subsidy Program (Continued) Mortality rates were based on the Generational RP-2000 with Projection Scale BB. The actuarial assumptions used in the July 1, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. Discount Rate The discount rate used to measure the total pension liability was 2.85% for the HIS Plan. In general, the discount rate for calculating the total pension liability is equal to the single rate equivalent to discounting at the long-term expected rate of return for benefit payments prior to the projected depletion date. Because the HIS benefit is essentially funded on a pay-as-you-go basis, the depletion date is considered to be immediate, and the single equivalent discount rate is equal to the municipal bond rate selected by the HIS Plan sponsor. The Bond Buyer General Obligation 20-Bond Municipal Bond Index was adopted as the applicable municipal bond index. Pension Liability Sensitivity The following presents the County’s proportionate share of the net pension liability for the HIS Plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the County’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:

Current Discount 1% Increase in

Description 1% Decrease Rate Discount Rate

HIS Plan Discount Rate 1.85% 2.85% 3.85%County's Proportionate Share of theHIS Plan Net Pension Liability 79,354,703$ 69,170,870$ 60,718,844$

Pension Plan Fiduciary Net Position Detailed information about the HIS Plan’s fiduciary’s net position is available in a separately-issued FRS Pension Plan and Other State-Administered Systems Comprehensive Annual Financial Report. That report may be obtained through the Florida Department of Management Services website at http://www.dms.myflorida.com. Investment Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan.


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15. EMPLOYEE RETIREMENT PLANS (CONTINUED) Investment Plan (continued) Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2015-16 fiscal year, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class 6.30%, Special Risk Administrative Support class 7.95%, Special Risk class 14.00%, Senior Management Service class 7.67% and County Elected Officers class 11.34%. For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The County’s Investment Plan pension expense totaled approximately $2,735,000 for the fiscal year ended September 30, 2016.

16. OTHER POSTEMPLOYMENT BENEFITS (“OPEB”)

A. Plan Description Pasco County Board of County Commissioners

The Board of County Commissioners defined benefit postemployment healthcare plan, the Group Health Program for Pasco County (“GHPPC”), is a cost-sharing multiple-employer health care plan that primarily provides medical, dental, vision and life insurance benefits (OPEB benefits) to eligible County retirees and their spouses. The Board of County Commissioners and the Constitutional Officers, except the Pasco County Sheriff and Pasco County Clerk & Comptroller, participate in GHPPC.


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16. OTHER POSTEMPLOYMENT BENEFITS (CONTINUED)

A. Plan Description (Continued)

In order to be eligible for benefits an employee must satisfy either normal or early retirement conditions under the Florida Retirement System (“FRS”). The Board of County Commissioners has the authority to establish and amend the benefit provisions of the plan in accordance with Sec. 110.123, Florida Statutes.

Pasco County Sheriff The Pasco County Sheriff’s Office (“PCSO”) operates a separate, single-employer cost-sharing health care plan. Pasco County Sheriff Health Care Plan (“PCSOHP”) offers medical and free life insurance paying double the employee’s salary, up to $50,000. The Sheriff provides postretirement healthcare benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employ of the Sheriff. To be eligible for postretirement healthcare benefits, the retiree must have at least six years of service or attain normal retirement age as defined by Social Security. Retirees with more than 6 years of service, but less than 30 years of service, pay 100% of the premium cost to receive postretirement healthcare benefits. Retirees with 30 or more years of service do not pay a premium to receive postretirement healthcare benefits; however, they surrender their monthly state subsidy of $150 per month. Pasco County Clerk & Comptroller The Pasco County Clerk & Comptroller’s Office (“PCCC”) offers a separate single-employer self-funded HMO health care plan (“PCCCHP”) that offers medical, dental, vision and life insurance benefits (OPEB benefits) to eligible retirees and their dependents. In order to be eligible for benefits, a Clerk & Comptroller’s office employee must satisfy either normal or early retirement conditions under the Florida Retirement System (“FRS”). Authority to establish and amend the benefit provisions of the plan is in accordance with Sec. 110.123, Florida Statutes. Membership of each plan consisted of the following at September 30, 2016 the date of the latest actuarial valuation:

GHPPC PCSOHP PCCCHPRetirees and Beneficiaries Receiving Benefits 324 303 137 Active Plan Members 2,423 1,228 315

Total 2,747 1,531 452 The County follows the provisions of Governmental Accounting Standards Board Statement No. 45 (“GASB 45”), Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, in accounting for these plans. Although all three plans are cost-sharing, they are not administered as formal trusts, nor are they an equivalent arrangement as of September 30, 2016, and, as such, in accordance with GASB 45, the plans must follow the accounting and reporting requirements of an agent multi-employer retirement plan. Separate financial statements are not prepared for the three other postemployment benefit plans. B. Funding Policy Pasco County Board of County Commissioners Eligible employees with less than 30 years of service may elect to continue medical coverage after they retire, for themselves and their dependents, by paying the full premium. Retirees under age 65, with 30 or more years of service, receive subsidized medical benefits from the County, and pay $150 per month towards medical benefits for single coverage, with the balance paid by the County, until they reach age 65. No subsidy exists for spousal or other dependent medical coverage. Surviving spouses of retired employees are eligible for health care benefits if they were covered as dependents of the retirees prior to their demise. Spouses are not eligible for continuing retiree benefits if retirees cancel coverage due to Medicare eligibility/enrollment. Dental coverage is voluntary, and the cost is fully covered by retirees. Retirees are eligible to continue $2,500 in life insurance coverage after retirement, and the premiums are paid for, in full, by retirees. The Program is currently unfunded.


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B. Funding Policy (Continued)

Pasco County Board of County Commissioners (Continued) There is no separate trust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for this purpose. All approved benefits are paid from the County’s general assets, when due. The GHPPC is funded on a pay-as-you-go basis. Pasco County Sheriff Eligible employees may elect to continue medical coverage after they retire, for themselves and their dependents, by paying the blended premium. Covered Spouses of retirees may remain covered under the retiree health insurance program (”PCSOHP”) even when the retiree is not covered or becomes ineligible upon eligibility for Medicare, by payment of the full blended premium for spousal coverage. For members who retire with 30 years of service or more, and who receive benefits from the Florida Retirement System (“FRS”), the Sheriff’s Office pays for individual coverage in the lowest cost plan, less the amount of health insurance subsidy received from FRS, until age 65. Retirees with less than 30 years of service are required to pay the total blended premium cost less FRS subsidies, if any. After attainment of age 65, all retirees are required to pay the total blended premium in order to continue coverage. Group dental, vision and life insurance are 100% paid by retirees. The Program is currently unfunded. There is no separate trust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for this purpose. All approved benefits are paid from the Sheriff’s general assets when due. The PSCOHP is funded on a pay-as-you-go basis.

Pasco County Clerk & Comptroller In order to be eligible for benefits, a Clerk’s office employee must satisfy either normal or early retirement conditions under the Florida Retirement System (“FRS”). Medical benefits for retirees are subsidized by the Clerk & Comptroller. For retirees under age 65, with less than 30 years of service, the Clerk & Comptroller pays $5 per month per year of service for Pre-65 medical coverage. Retirees under age 65 with 30 or more years of service pay $150 per month for single coverage, plus the full difference in the blended premium between single and employee-plus-one coverage if they cover their spouses. Retirees over age 65 pay 100% of the blended premium if they wish to continue coverage. Spouses of retired employees are only eligible to receive health care benefits as dependents of retirees. Coverage is not extended to surviving spouses of deceased retirees, except as provided by COBRA. Dental and vision benefits are elected separately. The retiree may elect to continue or terminate each benefit on an individual basis. For purposes of the actuarial calculation of the OPEB liability, dental and vision benefits are part of the overall Medical package and are not separated out. There is no additional premium/contribution for dental and vision benefits. The Clerk & Comptroller’s Office pays for 100% of the group life insurance premiums for all retirees (Accidental Death & Dismemberment benefit is terminated). The amount of life insurance coverage varies based on retirement date, job classification, and age. Employees who retire(d) on or after October 1, 2007 receive(d) life insurance in the amount equal to their annual salary as of the January 1 prior to their retirement. Employees who retired prior to October 1, 2007 received life insurance based on their job classification as follows: Regular Non-Exempt, $20,000; Regular Exempt, $30,000; Directors, $40,000; Chief Deputy Clerk, $50,000; Clerk, $100,000. Life insurance coverage for all retirees reduces to 50% of the above amounts at age 65, and to 35% at age 70. The Program is currently unfunded. There is no separate trust through which benefits for retirees are funded. No assets are currently accumulated or earmarked for this purpose. All approved benefits are paid from the Clerk’s general assets, when due. The PCCCHP is funded on a pay-as-you-go basis.


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C. Annual OPEB Cost and Net OPEB Obligation The annual other postemployment benefit (“OPEB”) cost (expense) is calculated based on the Annual Required Contribution (“ARC”) of the employer, an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over 30 years. The current ARC rate as a percentage of annual covered payroll is 3.3%, 4.6% and 3.8% for the GHPPC, PCSOHP and PCCCHP, respectively. The following table shows the components of the County, Sheriff, and Clerk & Comptroller’s OPEB cost for the year, the estimated contributions to the plan per the actuary report, and the changes in the net OPEB obligation (“NOO”).

GHPPC PCSOHP PCCCHPARC 3,445,443$ 2,925,419$ 433,221$ Interest 467,301 472,184 109,024 Adjustment to ARC (476,960) (481,944) (111,278) Annual OPEB Cost 3,435,784 2,915,659 430,967 Employer Contribution (648,462) (603,983) (234,551) Increase (Decrease) in NOO 2,787,322 2,311,676 196,416 NOO (Beginning of Year) 13,351,459 13,490,977 3,114,973 NOO (End of Year) 16,138,781$ 15,802,653$ 3,311,389$

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2016 and the two preceding years were as follows:

Percentage ofAnnual OPEB

Annual OPEB Cost Contributed Net OPEBYear Ended Cost to the Plan Obligation

GHPPC 9/30/2016 3,435,784$ 18.87% 16,138,781$ 9/30/2015 2,788,290$ 11.62% 13,351,459$ 9/30/2014 2,685,304$ 11.55% 10,887,216$

PCSOHP 9/30/2016 2,915,659$ 20.70% 15,802,653$ 9/30/2015 2,390,338$ 16.28% 13,490,977$ 9/30/2014 2,285,881$ 16.30% 11,489,892$

PCCCHP 9/30/2016 430,967$ 54.42% 3,311,389$ 9/30/2015 366,488$ 58.23% 3,114,973$ 9/30/2014 351,516$ 58.10% 2,961,890$


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D. Funded Status and Funding Progress of OPEB Plans The funded status of each plan as of the most recent actuarial valuation date is as follows:

Actuarial Actuarial Accrued Unfunded UAAL as a Actuarial Value of Liability (AAL) AAL Funded Covered Percentage of Valuation Assets Entry Age (UAAL) Ratio Payroll Covered Payroll

Date ( a ) ( b ) ( b - a ) ( a / b ) ( c ) ([ b - a ] / c )

GHPPC9/30/2016 -$ 38,303,081$ 38,303,081$ 0.00% 104,736,151$ 36.6%

PCSOHP9/30/2016 -$ 28,598,379$ 28,598,379$ 0.00% 63,058,847$ 45.4%

PCCCHP9/30/2016 -$ 5,577,236$ 5,577,236$ 0.00% 11,416,522$ 48.9%

Schedule of Funding ProgressPay-As-You-Go-Funding

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Actuarially determined amounts are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.


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16. OTHER POSTEMPLOYMENT BENEFITS (CONTINUED) E. Actuarial Methods and Assumptions Significant methods and assumptions were as follows:

GHPPC PCSOHP PCCCHPContribution Rate 3.30% 4.60% 3.80%Actuarial Valuation Date 9/30/2016 9/30/2016 9/30/2016Actuarial Cost Method Entry Age Entry Age Entry AgeAmortization Method Level percent, open Level percent, open Level percent, openRemaining Amortization Period 30 Years 30 Years 30 YearsAsset Valuation Method Unfunded Unfunded UnfundedActuarial Assumptions:

Investment Rate of Return* 3.50% 3.50% 3.50%Project Salary Increases* 3.70% to 7.80% 3.70% to 7.80% 3.70% to 7.80%Payroll Growth Assumption 3.25% 3.25% 3.25%Initial Trend Rate 7.50% 7.50% 7.50%Ultimate Trend Rate 4.00% 4.00% 4.00%

* Includes inflation at 2.60%

17. RISK MANAGEMENT

Self-insurance fund operations have been established to handle the County's worker's compensation, general liability, automobile liability, health claims and the Clerk & Comptroller and Sheriff health claims. The County uses a combination of self-insurance and third-party insurance to protect itself against risks that cannot be eliminated. The Clerk & Comptroller has an insurance fund that accounts for a self-insured plan for employee group health, dental, vision and prescription drugs. As of September 30, 2016, the insurance fund had $5,188,430 of available net position to fund claims liabilities. The claims liability of $270,622 reported in the Statement of Net Position – Proprietary Funds at September 30, 2016 is based on the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for unpaid claims costs, including estimates of costs related to incurred but not reported claims, be accrued when insured events occur. The Sheriff has an insurance fund that accounts for a self-insured plan for employee group medical and prescription drug coverage. As of September 30, 2016, the health insurance fund had $2,050,381 of available net position to fund claims liabilities. The claims liability of $877,000 reported in the Statement of Net Position - Proprietary Funds at September 30, 2016 is based on the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for unpaid claims costs, including estimates of costs related to incurred but not reported claims, be accrued when insured events occur. The County has worker's compensation insurance with a $650,000 deductible per occurrence for police/fire and a $500,000 deductible per occurrence for all others. The County’s general liability insurance has a $500,000 retention per claim with $1,000,000 retention per occurrence and $2,000,000 aggregate. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature. Effective October 1, 2011, sovereign immunity limits were increased to $200,000 per claim and $300,000 per occurrence for claims incurred after that date.


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17. RISK MANAGEMENT (CONTINUED) Settlements have not exceeded coverage in any of the past three fiscal years. All liabilities associated with these self–insured risks are reported in the basic financial statements of the County.

The automobile liability is self-insured. Almost all funds of the County participate in the worker's compensation, general liability, and automobile liability program and make payments to the County's Insurance Fund in accordance with cost allocations based upon the level of personnel staffing. Effective October 1, 2013, the County transitioned to self-insured coverage for medical and other health related benefits for its employees in order to better insulate the County against increasing health care costs. All claims activity associated with the County’s self-insured health plan is reported in the County Self Insurance Internal Service Fund. Total outstanding claim liabilities, inclusive of current claims payable and incurred but not reported claims, were $549,840 as of September 30, 2016. For the year ended September 30, 2016, the County reviewed its historical claims experience for purposes of determining estimates of the total claims and loss reserves for all self-insurance risks. The claim liability of $13,028,431 at September 30, 2016, of which an estimated $4,640,580 is due within one year, is based on the provisions of GASB Statement No. 10 which requires that a liability for unpaid claims costs, including estimates of costs related to incurred but not reported claims, be accrued when insured events occur. Changes in the funds claims liability amounts during the past two fiscal years are as follows:

Current Year ClaimsFiscal Beginning of Fiscal and Changes in Claims Balance at Year Year Liability Estimates Payments Fiscal Year End2015 12,062,250$ 32,788,761$ 31,390,166$ 13,460,845$ 2016 13,460,845$ 36,231,581$ 36,663,995$ 13,028,431$

The County had no significant reductions in insurance coverage during the fiscal year ended September 30, 2016. There were no settlements which exceeded the County's insurance coverage in any of the past three fiscal years.


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18. EXPENDITURES IN EXCESS OF APPROPRIATIONS The following excesses are noted at September 30, 2016:

AmountsMunicipal Services Fund

Physical Environment (6,455)$ Transportation (223,058)

West Pasco Law Library FundCourt-related (1,201)$

Special Assessment FundEconomic Environment (35)$

School Impact Fees FundGeneral Government (noncourt-related) (1,787,132)$

Public Safety Note, Series 2016Interest and debt service charges (178,352)$

Board Capital Improvements FundCourt-related (57,600)$

Capital Projects FundGeneral Government (noncourt-related) (3,446,514)$ Transportation (1,846,088)

The excesses noted in the Municipal Services, West Pasco Law Library, Special Assessment, School Impact Fees, Public Safety Note, Series 2016, Board Capital Improvements, and Capital Projects Funds are the result of overages of line item expenditures. Overall appropriations are not exceeded in the Municipal Services, Special Assessment, Public Safety Note, Series 2016, and Board Capital Improvements funds; overall appropriations are exceeded in the West Pasco Law Library, School Impact Fees, and Capital Projects funds.


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19. DEFICIT FUND EQUITY The following nonmajor governmental funds had deficit fund balances at September 30, 2016:

Criminal Justice (FDLE) ($16,908) – This fund had higher than expected expenditures related to Public Safety for 2016. No continued recurring deficits are anticipated in this fund with anticipated additional intergovernmental revenues in 2017.

Department of HUD ($310,218) – While this fund’s expenditures were less than the budgeted amount of expenditures, anticipated revenue was less than originally planned. It is anticipated that this deficit will be resolved in 2017 through the additional receipting of Federal intergovernmental revenue in 2017.

Department of Community Affairs Grants ($752,978) – Public Safety expenditures were higher than

expected in 2016. No continued recurring deficits are anticipated in this fund. U.S. Department of Health and Human Services ($150,728) – Additional intergovernmental revenues

are anticipated in 2017. No continued recurring deficits are anticipated in this fund.

Grants ($502,806) – While this fund incurred lower than expected expenditures in this fund in 2016, no continued recurring deficits are anticipated in this fund.

Division of Library Services ($26) – This deficit is the result of an unanticipated expense in 2016. No

continued recurring deficits are anticipated in this fund.

Florida Department of Elder Affairs ($38) – This deficit is the result of an unanticipated expense in 2016. No continued recurring deficits are anticipated in this fund.

Department of Elder Affairs (Federal) ($10,222) – Anticipated intergovernmental revenue was less than expected in 2016. No continued recurring deficits are anticipated in this fund.

Title III-B Transportation ($2) – No continued recurring deficits are anticipated in this fund.

Department of Homeland Security ($87,024) – Revenues were less than anticipated in this fund in

2016. No continued recurring deficits are anticipated in this fund.

Office of Tourism, Trade, and Economic Development ($1,274,086) – Expenditures were greater than anticipated in this fund in 2016. No continued recurring deficits are anticipated in this fund.

U.S. Environmental Protection Agency ($98,062) – Expenditures were greater than anticipated in this

fund in 2016. No continued recurring deficits are anticipated in this fund. Capital Projects ($5,116,732) – This is a new fund in 2016; anticipated revenues were not realized while

expenditures were greater than expected. No continued recurring deficits are anticipated in this fund.


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20. COMMITMENTS, CONTINGENCIES AND OTHER MATTERS

General Government Construction Commitments At September 30, 2016, the County had various contract commitments for general government construction projects totaling approximately $21.9 million. Enterprise Funds Commitments At September 30, 2016, purchase and construction contract commitments in the Enterprise Funds were approximately $13.3 million. On March 28, 1989, the Board entered into a service agreement with Covanta Pasco, Inc. ("Covanta"), formerly known as Ogden Martin Systems of Pasco, Inc., for the operation and maintenance of the Solid Waste Disposal and Resource Recovery System Facility. The agreement commenced on May 15, 1991 and was extended through December 31, 2024. Under the updated agreement, Covanta is paid a monthly service fee based on an annual operation and maintenance charge of $11,773,915, as adjusted by additional revenues and expenses related to the operation and maintenance of the Facility, as defined in the service agreement. For the year ended September 30, 2016, charges to the Board under the service agreement totaled $17,060,128. Also, on March 28, 1989, the Board entered into an agreement with Duke Energy (formerly Progress Energy Corporation) wherein the Board sells and Duke Energy purchases the net electrical energy generated from the Solid Waste Disposal Resource Recovery System Facility. For the year ended September 30, 2016, the Board's power sales to Duke Energy totaled $24,575,035. Under the terms of the agreement, the Board has committed to having available annually, 23 megawatts of electrical energy for purchase by Duke Energy through December 2024. The capacity of energy committed by the Board is subject to adjustment for the period January 2015 through December 2024, as defined in the agreement. Grants All expenditures financed by Federal and State of Florida grants are subject to audit by the granting agencies to determine if such expenditures comply with the conditions of a grant. Management believes that no material liability will arise from any such audits. Claims and Lawsuits A number of claims and lawsuits are pending against the County. However, based on knowledge of facts and advice of the County Attorney and outside counsel, Management believes that the outcome of these actions will not have a material adverse effect on the County's financial position or results of operations. In March 2009, a verdict was asserted against the Pasco County Sheriff's office awarding approximately $8.7 million to the claimant. The Florida statutory sovereign immunity provisions at that time put a cap on damages of $100,000 and such damages were paid through the Florida Sheriff's Automobile Risk Program (SHARP). However, the claimant pursued the remaining verdict award through a claim bill with the Florida Legislature. Subsequent to fiscal year end, a settlement agreement was reached between the parties in the amount of $325,000 per year for eight consecutive years, for a total of $2.6 million. The first payment is to be made by SHARP, due by 10/31/2017, with the remaining years to be paid by the Sheriff's office. The Sheriff's office will make its first payment no later than 10/31/2018 and each consecutive year thereafter until paid in full.


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21. FUND BALANCES

The details of the specific purposes of the various categories of fund balance are as follows:

Restricted for Federal or State Law Provide for 1) various municipal services 2) construction, improvements, and major maintenance of County roads 3) a radio communications system that increases the capability of public entities for intergovernmental communications 4) fire prevention and suppression services 5) maintenance of an enhanced emergency communications system 6) construction of courthouses and court-related buildings and maintenance of court facilities and 7) identification, design and construction of drainage projects and maintenance of various drainage components. Restricted for Impact Fees Provide for 1) increased capacity for the major road network system 2) additional schools, libraries, and parks and 3) purchase of land and equipment and construction of facilities to assist in providing fire prevention and suppression services. Restricted for Other Purposes Provide for 1) modernization of the Clerk’s official records system 2) maintenance of facilities for use of the courts 3) a vocational facility for incarcerated aliens and 4) child care and protective services. Committed by Ordinances or Other Provide for 1) affordable housing and 2) purchase, planting, and maintenance of native trees throughout the County. Assigned for Other Purposes Provide for 1) transportation-related capital improvements and 2) purchase of books and equipment and payment of librarian salaries.


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21. FUND BALANCES (CONTINUED)

Nonmajor TotalPenny for Governmental Governmental

General Fund Pasco Fund Funds FundsNonspendable:Advances to other funds 1,534,000$ -$ -$ 1,534,000$ Prepaids 19,751 - 11,696 31,447 Inventories 187,350 - 462,721 650,071 Total Nonspendable 1,741,101 - 474,417 2,215,518

Restricted:Bond Covenants or Debt Service - - 3,727,169 3,727,169 Culture and Recreation, Boating and Improve. - - 1,128,163 1,128,163 Culture and Recreation, Impact Fees - - 13,066,282 13,066,282 Culture and Recreation, Library Impact Fees - - 2,686,886 2,686,886 Economic Environment, Housing 435,434 - 8,225,359 8,660,793 Economic Environment, Rural 88,479 - - 88,479 Economic Environment, Tourism Development - - 12,632,461 12,632,461 General Government, Court Facilities - - 10,590,999 10,590,999 General Government, Impact Fees - - 4,713 4,713 General Government, Facilities - 88,260,482 2,974,363 91,234,845 General Government, Radio Communications - - 1,925,210 1,925,210 General Government, State Courts Admin. 3,288 - - 3,288 Human Services, Education and Treatment Prog. 13,726 - 665 14,391 Human Services, Nutrition - - 248,492 248,492 Human Services, Teen Court - - 134,957 134,957 Municipal Services, Various - - 62,301 62,301 Other Grant Programs - - 5,900 5,900 Other Purposes 96,018 - 9,231,276 9,327,294 Physical Environment - - 1,099,932 1,099,932 Physical Environment, Restore Act - - 48,541 48,541 Public Safety, 911 Services - - 3,003,930 3,003,930 Public Safety, Building Inspections and Permits - - 8,484,430 8,484,430 Public Safety, Fire Services - - 9,465,148 9,465,148 Public Safety, Fox Ridge MSBU - - 364,436 364,436 Public Safety, Hurricane Mitigation - - 273,240 273,240 Public Safety, Impact Fees - - 10,064,836 10,064,836 Public Safety, Law Enforcement and equipment - - 462,742 462,742 Public Safety, prehospitalization EMS - - 22,057 22,057 Quail Hollow Village MSBU - - 56,268 56,268 Road Assessments - - 13,813,312 13,813,312 Transportation - - 55,269,887 55,269,887 Transportation, Capital - - 53,488,167 53,488,167 Transportation, Impact Fees - - 80,002,906 80,002,906 Transportation, Lighting - - 2,387,640 2,387,640 Transportation, Stormwater Management - - 8,752,727 8,752,727 Total Restricted 636,945 88,260,482 313,705,395 402,602,822

Committed:Economic Environment, Affordable Housing - - 302,728 302,728 Physical Environment 2,923,703 - 1,301,170 4,224,873 General Government, Facilities - - 5,765,974 5,765,974 Total Committed 2,923,703 - 7,369,872 10,293,575

Major Funds


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21. FUND BALANCES (CONTINUED)

Nonmajor TotalPenny for Governmental Governmental

General Fund Pasco Fund Funds FundsAssigned:Culture and Recreation, Law Library - - 81,004 81,004 Culture and Recreation, Parks 22,097 - - 22,097 Economic Environment, Incentive Projects 2,500,000 - - 2,500,000 Economic Environment, Redevelopment - - 8,478 8,478 General Government, Court Technology 1,394,630 - - 1,394,630 Human Services, Medicaid related 1,624,352 - - 1,624,352 Human Services, ADA related 290,473 - - 290,473 Public Safety, Other Purposes 36,795 - - 36,795 Transportation, Multi-Modal - - 8,250,319 8,250,319 Total Assigned 5,868,347 - 8,339,801 14,208,148

Unassigned (deficit) 61,062,477 - (8,324,718) 52,737,759

Total Fund Balances 72,232,573$ 88,260,482$ 321,564,767$ 482,057,822$

Major Funds

REQUIRED SUPPLEMENTARY INFORMATION

PASCO COUNTY, FLORIDA OTHER POSTEMPLOYMENT BENEFITS

REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2016

(UNAUDITED)

F-1

Schedule of Funding Progress for Pasco Coupnty:


Date ( a ) ( b ) ( b - a ) ( a / b ) ( c ) ([ b - a ] / c )9/30/2016 -$ 38,303,081$ 38,303,081$ 0.00% 104,736,151$ 36.6%9/30/2014 -$ 26,935,910$ 26,935,910$ 0.00% 89,390,765$ 30.1%9/30/2012 -$ 19,954,739$ 19,954,739$ 0.00% 82,847,911$ 24.1%


Date ( a ) ( b ) ( b - a ) ( a / b ) ( c ) ([ b - a ] / c )9/30/2016 -$ 28,598,379$ 28,598,379$ 0.00% 63,058,847$ 45.4%9/30/2014 -$ 22,722,417$ 22,722,417$ 0.00% 54,938,687$ 41.4%9/30/2012 -$ 18,375,400$ 18,375,400$ 0.00% 56,541,529$ 32.5%


Date ( a ) ( b ) ( b - a ) ( a / b ) ( c ) ([ b - a ] / c )9/30/2016 -$ 5,577,236$ 5,577,236$ 0.00% 11,416,522$ 48.9%9/30/2014 -$ 4,356,226$ 4,356,226$ 0.00% 11,691,362$ 37.3%9/30/2012 -$ 4,793,018$ 4,793,018$ 0.00% 11,626,888$ 41.2%

Group Health Plan for Pasco Board of County Commissioners

Pasco County Sheriff's Office Health Plan

Pasco County Clerk & Comptroller's Office Health Plan

See accompanying independent auditors’ report.

PASCO COUNTY, FLORIDA OTHER POSTEMPLOYMENT BENEFITS

REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2016

(UNAUDITED)

F-2

Schedule of Employer Contributions for Pasco County:

Fiscal Annual Year Ended Required Percentage

September 30, Contribution Contributed2016 Group Health Plan for Pasco Board of County Commissioners 3,445,443$ 18.8%

Pasco County Sheriff's Office Health Plan 2,925,419$ 20.7%

Pasco County Clerk & Comptroller's Office Health Plan 433,221$ 54.4%

2014 Group Health Plan for Pasco Board of County Commissioners 2,691,461$ 11.5%



2012 Group Health Plan for Pasco Board of County Commissioners 1,834,383$ 38.4%




PASCO COUNTY, FLORIDA SCHEDULE OF THE COUNTY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS -

FLORIDA RETIREMENT SYSTEM PENSION PLAN1 REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2016 (UNAUDITED)

F-3

2016 2015

County's Proportion of the Net Pension Liability 0.861563652% 0.771800726%

County's Proportionate Share of the Net Pension Liability 326,959,680$ 99,688,415$

County's Covered-Employee Payroll 158,066,946$ 149,032,321$

County's Proportionate Share of the Net Pension Liability (Asset) as aPercentage of Its Covered-Employee Payroll 206.85% 66.89%

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 84.88% 92.00%

*The Amounts Presented for Each Fiscal Year were Determined as of June 30.

1 Note: Information is required to be presented for 10 years. However, until a full 10-year trend is compiled, the County will present information for only those years for which information is available.


PASCO COUNTY, FLORIDA CONTRIBUTION REQUIREMENTS-

FLORIDA RETIREMENT SYSTEM PENSION PLAN1 REQUIRED SUPPLEMENTARY INFORMATION


F-4

2016 2015

Contractually Required Contribution 22,238,121$ 19,207,013$ Contributions in Relation to the Contractually Required Contribution 22,238,121 19,207,013 Contribution Deficiency (Excess) -$ -$

County's Covered-Employee Payroll 162,553,167$ 150,898,162$ Contributions as a Percentage of Covered Employee Payroll 13.68% 12.73%



PASCO COUNTY, FLORIDA SCHEDULE OF THE COUNTY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS-

FLORIDA RETIREMENT SYSTEM RETIREE HEALTH INSURANCE SUBSIDY PROGRAM REQUIRED SUPPLEMENTARY INFORMATION


F-5

2016 2015

County's Proportion of the Net Pension Liability 0.593507750% 0.565286480%

County's Proportionate Share of the Net Pension Liability 69,170,870$ 57,650,329$

County's Covered-Employee Payroll 179,734,292$ 168,677,283$

County's Proportionate Share of the Net Pension Liability (Asset) as aPercentage of Its Covered-Employee Payroll 38.49% 34.18%

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 0.97% 0.50%


See accompanying independent auditors’ report

PASCO COUNTY, FLORIDA CONTRIBUTION REQUIREMENTS

FLORIDA RETIREMENT SYSTEM RETIREE HEALTH INSURANCE SUBSIDY PROGRAM REQUIRED SUPPLEMENTARY INFORMATION


F-6

2016 2015

Contractually Required Contribution 3,042,106$ 2,367,902$ Contributions in Relation to the Contractually Required Contribution 3,042,106 2,367,902 Contribution Deficiency (Excess) -$ -$

County's Covered-Employee Payroll 185,237,025$ 171,055,043$ Contributions as a Percentage of Covered Employee Payroll 1.64% 1.38%


See accompanying independent auditors’ report

COMBINING AND INDIVIDUAL FUND STATEMENTS

AND SCHEDULES

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS MUNICIPAL SERVICES FUND To account for various municipal services, including Planning & Growth Management, Zoning & Site Development, Code Enforcement, Animal Services, Emergency Services Administration, and Engineering Services that are provided in the unincorporated areas of the County. LOCAL OPTION GAS TAX FUND To account for transportation expenditures needed to meet the requirements of the capital improvements element of the comprehensive plan, expenditures needed to meet immediate local transportation problems and for other transportation-related expenditures that are critical for building comprehensive roadway networks. Expenditures for the construction of new roads shall be deemed to increase capacity and such projects shall be included in the capital improvements element of the adopted comprehensive plan. This fund shall not include routine maintenance of roads. These expenditures are funded by the Five-Cent Second Local Option Fuel Tax in accordance with Chapter 102, Article III of County Code of Ordinances (§ 102-162), Section 336.025(1)(b), Florida Statutes, and Chapter 206, Florida Statutes. The Board of County Commissioners passed this ordinance on September 9, 2014. BUILDING INSPECTIONS AND PERMITTING FUND To account for the administration of the Florida Building Code pursuant to Chapter 553.79, Florida Statutes, and in accordance with Chapter 18, Article III (§ 18-40) of County Code of Ordinance. EAST AND WEST PASCO LAW LIBRARY FUNDS To account for the purchase of books and equipment and the payment of librarian salaries in the East and West Pasco Law Libraries. Effective July 1, 2004, the legislature gave the counties authority to impose a surcharge on court costs of an amount up to $65 to be imposed when a person pleads guilty or nolo contendere to or is found guilty of any felony, misdemeanor, or criminal traffic offense under the laws of the State. The Board of County Commissioners passed this ordinance (§ 34-33) on June 8, 2004. The law specifies that twenty-five percent of the amounts collected shall be allocated to fund personnel and legal materials for the public as part of a law library. These funds are in accordance with Section 939.185, Florida Statutes. ROAD AND BRIDGE FUND To account for major and minor maintenance of County roads, bridges, bicycle paths, and sidewalks; roadway and right-of-way maintenance and drainage; traffic signs, traffic engineering, signalization, and pavement markings installation, operation, maintenance, and repair; and street lighting installation, operation, maintenance, and repair. These expenditures are funded by the Two-Cent Constitutional Fuel Tax (Section 206.41(1)(a), Florida Statutes), One-Cent County Fuel Tax (Section 206.41(1)(b), Florida Statutes), Six-Cent First Local Option Fuel Tax (Section 336.025(1)(a), Florida Statutes and Chapter 102, Article III of County Code of Ordinances (§ 102-151)), and One-Cent Ninth-Cent Fuel Tax (Section 206.41(1)(d), Florida Statutes and Chapter 102, Article III of County Code of Ordinances (§ 102-160)). LAW ENFORCEMENT FUND To account for the proceeds from the sale of forfeited property to be expended for law enforcement purposes such as protracted or complex investigations, additional technical equipment or expertise, or matching funds to obtain federal grants, or other law enforcement purposes, which the Board of County Commissioners deems appropriate in accordance with Section 932.7055, Florida Statutes.


(CONTINUED) SPECIAL REVENUE FUNDS (CONTINUED) TOURIST DEVELOPMENT TAX FUND To account for the collection and use of a two percent Tourist Development Tax imposed pursuant to Chapter 102 of County Code of Ordinances (§ 102-190) and in accordance with Section 125.0104, Florida Statutes. SPECIAL ASSESSMENT FUND To account for special assessments levied to finance road improvements deemed to benefit the properties against which the assessments are levied in accordance with Chapter 2, Article IV of the County Code of Ordinances (§ 2-155).

INTERGOVERNMENTAL RADIO COMMUNICATION FUND To account for money received from the moving violation surcharge for use in providing a radio communications system that allows access to or increases the capability of public entities for intergovernmental communications in accordance with Section 318.21, Florida Statutes. Twelve dollars and fifty cents from each moving traffic violation must be used by the County to fund an intergovernmental radio communication program approved by the Department of Management Services. RESOURCES AND ECOSYSTEMS SUSTAINABILITY, TOURISM OPPORTUNITIES AND REVIVED ECONOMY (RESTORE) ACT FUND To account for grant funding for the Gulf Coast Oil Spill to restore, protect, make sustainable use or the natural resources, ecosystems, fisheries, marine habitats, coastal wetlands, and economy of the Gulf Coast. On October 19, 2012 Pasco County entered into a Consortium Interlocal Agreement with the other 22 gulf coast counties in Florida, and this fund accounts for the grant funding received through the RESTORE Act. QUAIL HOLLOW VILLAGE MSBU FUND To account for special assessments levied to finance services provided for the common area of the unit, created at the request of the residents. This fund is in accordance with Chapter 98 of the County Code of Ordinance (§ 03-41) adopted in December of 2003. MUNICIPAL FIRE SERVICE UNIT FUND To account for fire prevention and suppression services provided to properties within municipal fire service area of the County (Ordinance 79-28 and 01-012). DEPARTMENT OF JUVENILE JUSTICE FUND To account for funds received for the Teen Court Grant. CRIMINAL JUSTICE (FDLE) FUND To account for Byrne grants for the Sheriff’s Office and Clerk & Comptroller’s Office in accordance with Section 943.25, Florida Statutes. HUD HOUSING AND RECOVERY NEIGHBORHOOD STABILIZATION PROGRAM (NSP) (II AND III) FUND To account for the second and third editions of NSP grant funds to be used for neighborhood stabilization programs to combat the effects of home foreclosures.


(CONTINUED) SPECIAL REVENUE FUNDS (CONTINUED) AMERICAN RECOVERY AND REINVESTMENT ACT FUND To account for funds obtained by the Act enacted by Congress on February 17, 2009, to stimulate the economy. HUD HOUSING AND RECOVERY FUND To account for Neighborhood Stabilization Program (NSP) funds to be used for the purchase and redevelopment of foreclosed and abandoned homes in order to stabilize communities with Pasco County. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FUND To account for the provision of infrastructure improvements, public facilities, parks and recreation improvements, housing assistance and other activities, which are related to improvements of moderate-to-low-income areas of the County; to account for the provision of emergency shelters for the County’s homeless; and to account for the Rental Rehabilitation Program, which provides grants to property owners to improve rental property provided to lower income families. DEPARTMENT OF COMMUNITY AFFAIRS GRANTS FUND To account for the maintenance of local emergency plans and implementation procedures through the Emergency Management Assistance Program; to account for housing rental assistance provided to qualified citizens of the County. DEPARTMENT OF TRANSPORTATION FUND To account for the transportation planning process as approved by the Florida State Department of Transportation, the purchase of certain equipment used in the Pasco County Transportation System, the provision of capital equipment as it relates to the transportation disadvantaged, and the provision of improvements for intermodal access to U.S. 19. This fund is in accordance with Section 341.052, Florida Statutes. HOME PROGRAM FUND To account for the expansion and supply of decent, safe, sanitary, and affordable housing for low-income residents of Pasco County. U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES FUND To account for grants received from the U.S. Department of Health and Human Services. GRANTS FUND To account for various grants not otherwise displayed separately. DIVISION OF LIBRARY SERVICES FUND To account for grants received to improve the capabilities of the public library system. LIBRARY COOPERATIVE GRANT FUND To account for grants received to benefit the County’s libraries through the Pasco County Library Cooperative Board. FLORIDA DEPARTMENT OF ELDER AFFAIRS FUND To account for a grant to construct, repair, and maintain the Elfers Senior Center. DEPARTMENT OF ELDER AFFAIRS (FEDERAL) FUND To account for the provision of emergency funding to elderly residents of the County and to assist in the payment of energy bills pursuant to Chapter 430, Florida Statutes. U.S. DEPARTMENT OF JUSTICE FUND To account for assistance provided to the Sheriff for certain law enforcement activities and the purchase of equipment.

NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)

SPECIAL REVENUE FUNDS (CONTINUED) TRANSPORTATION SERVICES FUND To account for the undertaking of non-urbanized area public transportation projects consisting of operating assistance for Pasco County Public Transportation System; to account for the operating, administrative, and management costs in providing public transportation and planning related services to the transportation disadvantaged. PUBLIC TRANSPORTATION FUND To account for the provision of para-transit services and the undertaking of a non-urbanized area public transportation project consisting of operating assistance for the transportation system, to account for the operating requirements related to an urban transportation demand response and the purchase of equipment, and to account for the completion of a locally-adopted Transit Development program. TITLE III-B TRANSPORTATION FUND To account for transportation services provided to citizens of the County, who are 60 years of age and older. DEPARTMENT OF CHILDREN AND FAMILIES FUND To account for grants received to improve or enhance pre-hospitalization emergency medical services. This fund is in accordance with Chapter 39, Florida Statutes. ELDERLY NUTRITION FUND To account for congregate and home delivered meals, nutrition education services, and outreach services provided to citizens of the County, who are 60 years of age and older. This fund is in accordance with Chapter 430, Florida Statutes. DEPARTMENT OF HOMELAND SECURITY FUND To account for those funds received from the Department of Homeland Security used for enhancement of safety and security issues for the protection of County citizens. This fund is in accordance with Chapter 943, Florida Statutes. OFFICE OF TOURISM, TRADE AND ECONOMIC DEVELOPMENT FUND To account for those grants received to improve the economic base or tourist-related activities in the County. This fund is in accordance with Chapter 125, Florida Statutes. DEPARTMENT OF ENVIRONMENTAL PROTECTION FUND To account for the grant portion of services for the Jumping Gully Preserve Grant and the Florida Communities Trust. This fund is in accordance with Chapter 403, Florida Statutes. U.S. ENVIRONMENTAL PROTECTION AGENCY FUND To account for grant funds received from the U.S. Department of Environmental Protection for the Brownfield’s Coalition Assessment Grant. AFFORDABLE HOUSING FUND To account for funds related to development orders for affordable housing. WILLIAMSBURG WEST MUNICIPAL SERVICE TAXING UNIT (MSTU) FUND To account for services provided within the confines of the service unit.


SPECIAL REVENUE FUNDS (CONTINUED) 911 EMERGENCY SERVICES FUND To account for the maintenance of an enhanced emergency communications system that links ambulance, law enforcement, and fire dispatching service for the County and all cities within the County. This fund is in accordance with Sections 365.127-173, Florida Statutes. FLORIDA BOATING AND IMPROVEMENT FUND To account for the improvement of boating facilities to include docks, channel markers, restrooms, sidewalks, and those items which improve facilities for boating or boaters. This fund is in accordance with Section 328.72(15), Florida Statutes. U.S. 19 CONCURRENCY FUND To account for impact fees charged to new construction activity near U.S. 19 under the County's New Development Fair Share Contribution for Road Improvement Ordinance (04-07). These fees will assist in providing increased capacity for U.S. 19 to accommodate the increased demand. This fund is in accordance with Chapter 163, Florida Statutes. TRANSPORTATION IMPACT FEE (WEST, CENTRAL, AND EAST) FUNDS To account for impact fees charged to new construction activity in the County under the County's New Development Fair Share Contribution for Road Improvements Ordinance. These fees will assist in providing increased capacity for the major road network system to accommodate the increased demand and is in accordance with Chapter 78 of the County Code of Ordinances. SCHOOL IMPACT FEES FUND To account for impact fees charged to new construction activity. These fees will assist in providing for additional schools to accommodate the growth in the County and is in accordance with Chapter 78 of the County Code of Ordinances and Section 1302.3, Land Development Code. COURT FACILITIES IMPROVEMENT 939.185 F.S. FUND To account for additional court costs assessed to any person pleading guilty or nolo contendere to, or found guilty of, any felony, misdemeanor or criminal traffic offense under the laws of the State, so long as the person has the ability to pay and will not be prevented from making restitution or other compensation to victims or from paying child support. Pursuant to Florida Statutes 939.18, a court may assess up to $150 in additional court costs which may be used for the construction of courthouses and court-related buildings and for maintenance or repair of court facilities, exclusive of janitorial or custodial services. This was modified in the 2004 legislative session to include a surcharge of up to $15 for any infraction or violation if passed by ordinance. The Board of County Commissioners passed this ordinance on June 8, 2004. ALCOHOL AND OTHER DRUG ABUSE FUND To account for additional court costs assessed against any person found guilty of a misdemeanor involving illegal use of alcohol or drugs. The additional money is to be allocated to local drug and alcohol abuse treatment programs. This fund is in accordance with Section 938.23, Florida Statutes.


SPECIAL REVENUE FUNDS (CONTINUED) TEEN COURT FUND To account for additional court costs assessed to any person pleading guilty or nolo contendere to, or convicted of, regardless of adjudication, a violation of a state criminal statute or a county ordinance, or who pays a fine or civil penalty for any violation of Chapter 316, Florida Statutes. Any person whose adjudication is withheld pursuant to the provisions of Chapter 313.14(9) or (10), Florida Statutes, shall also be assessed such cost. Pursuant to Chapter 938.19, Florida Statutes, the circuit and county court shall assess a sum of $3 in additional court costs, which may be used to provide services to an array of youth referred from law enforcement agencies, the state attorney, the sheriff, county schools and the court system. This was modified in the 2004 legislative session to include a surcharge of up to $15 for any infraction or violation if passed by ordinance. The Board of County Commissioners passed this ordinance on June 8, 2004. MULTI-MODAL TRANSPORTATION FUND To account for the finance or refinance of transportation capital improvements, transportation capital expenses, and transportation operation and maintenance expenses. This fund receives 33.33% of tax increment revenues from the General Fund to pay for these expenses. This fund is in accordance with Chapter 2, Article VI, of the County Code of Ordinances (§ 2-331). LACOOCHEE/TRILBY REDEVELOPMENT FUND To account for the tax increment financing revenues in the Lacoochee/Trilby Redevelopment Area established by Chapter 2, Article VI of the Pasco County Code of Ordinances No. 13-22. The Ordinance requires the tax increment revenue to be earmarked for essential infrastructure including transportation, building, utility, and park infrastructure. COMBAT IMPACT FEE FUND To account for impact fees charged to new construction activity. These fees will be used to purchase land and equipment and to build facilities, which will assist in providing fire prevention and suppression services to accommodate the growth in the County. This fund is in accordance with Chapter 78 of the County Code of Ordinances and Section 1302.6, Land Development Code. PARK IMPACT FEE (WEST, CENTRAL, AND EAST AREAS) FUNDS To account for impact fees charged to new construction activity. These fees will assist in providing additional parks to accommodate the growth in the County. These funds are in accordance with Chapter 78 of the County Code of Ordinances and Section 1302.4, Land Development Code. RESCUE IMPACT FEE FUND To account for impact fees charged to new construction activity. These fees will assist in rescue services to accommodate the growth in the County. This fund is in accordance with Chapter 78, Article II of the County Code of Ordinances and included in Section 1302.5, Land Development Code. LIBRARY IMPACT FEE FUND To account for impact fees charged to new construction activity. These fees will assist in providing additional libraries to accommodate the growth in the County. This fund is in accordance with Chapter 78, Article II, of the County Code of Ordinances and included in Section 1302.5, Land Development Code.


SPECIAL REVENUE FUNDS (CONTINUED) HURRICANE MITIGATION FEE FUND To account for hurricane shelter retrofitting and traffic management services in Pasco County. This fund is included in part of Section 1302.7, Land Development Code. STORMWATER MANAGEMENT FUND To account for non Ad Valorem assessments based on an equivalent residential unit (ERU) of impervious service area. Funds are used to identify, design, and construct drainage projects and maintain various drainage components. This fund is in accordance with Chapter 125, Florida Statutes, and Chapter 110 of the County Code of Ordinances (§110-372). FOX RIDGE MSBU FUND To account for non Ad Valorem assessments based on an equivalent residential unit (ERU) of impervious service area. Funds are used to identify, design, and construct drainage projects and maintain various drainage components. This fund is in accordance with Section 125.01(q-r), Florida Statutes and County Ordinances (§14-18). TREE FUND To account for monies collected for the removal, topping, or irreversible damage of trees, as per Section 802.3.E., Land Development Code; to purchase, plant, and maintain native trees on land within Pasco County. LIGHTING DISTRICTS FUND To account for special assessments levied to finance street lighting services deemed to benefit the properties against which the assessments are levied. This fund is in accordance with Chapter 94, Article II, of the County Code of Ordinances (§ 94-46) and Section 125.01, Florida Statutes. CLERK & COMPTROLLER SPECIAL REVENUE FUND To account for service charges paid to the Clerk for recording instruments in the official records, which are to be used exclusively for equipment, personnel training, and technical assistance in modernizing the official records system, in accordance with Florida Statutes; to account for additional fees paid to the Clerk by parties instituting or filing probate matters, civil actions, or proceedings, which are to be used for providing and maintaining facilities for the use of the courts, including court support services, in accordance with County ordinance. SHERIFF SPECIAL REVENUE FUND To account for the receipt and expenditure of non-criminal traffic infraction collections, confiscated funds resulting from arrests, unclaimed evidence, fines and filing fees related to juvenile court, parking citations collections, net proceeds under federal forfeitures, federal funds received to provide a vocational facility for incarcerated aliens, funding to provide child care and protective services, and various federal and state grants. SUPERVISOR OF ELECTIONS SPECIAL REVENUE FUND To account for funds received from the State of Florida for various Voter Education Grants.


(CONTINUED) DEBT SERVICE FUNDS HUD SECTION 108 NOTE, SERIES 2006 FUND To account for the payment of principal and interest on the Section 108, Housing and Urban Development (HUD) $13,000,000 Note for the Tommytown Neighborhood revitalization project. The County has pledged future Community Development Block Grant (CDBG) grants and other non Ad Valorem funds as security for the Guaranteed Loan Funds in the HUD contract. GUARANTEED ENTITLEMENT REFUNDING REVENUE BONDS, SERIES 2003 FUND To account for the payment of principal and interest on the Guaranteed Entitlement Refunding Revenue Bonds, Series 2003. Amounts are payable from the guaranteed entitlement portion of Revenue Sharing Trust Funds of the State of Florida and from various investments and deposits. HALF-CENT SALES TAX REVENUE BONDS, SERIES 2003 FUND To account for the payment of principal and interest on the Half-Cent Sales Tax Revenue Bonds, Series 2003. Amounts are payable from the proceeds of the one-half cent sales tax distributed to the County by the State of Florida. GUARANTEED ENTITLEMENT REFUNDING REVENUE BONDS, SERIES 2013 FUND To account for the partial payment of principal and interest on the Guaranteed Entitlement Refunding Revenue Bonds, Series 2013 (other partial payment from the Guaranteed Entitlement Loan, Series 2014 Fund). Amounts are payable from the guaranteed entitlement portion of Revenue Sharing Trust Funds of the State of Florida and from various investments and deposits. This fund is in accordance with Chapter 2, Article IV, of the County Ordinances (§ 2-170). HALF-CENT SALES TAX REVENUE BONDS, SERIES 2013 FUND To account for the payment of principal and interest on the Half-Cent Sales Tax Revenue Bonds, Series 2013. Amounts are payable from the proceeds of the one-half cent sales tax distributed to the County by the State of Florida. This fund is in accordance with Chapter 2, Article IV, of the County Ordinances (§ 2-170). GUARANTEED ENTITLEMENT LOAN, SERIES 2014 FUND To account for the partial payment of principal and interest on the Guaranteed Entitlement Refunding Revenue Bonds, Series 2014 (other partial payment from the Guaranteed Entitlement Refunding Revenue Bonds, Series 2013 Fund). Amounts are payable from the guaranteed entitlement portion of Revenue Sharing Trust Funds of the State of Florida and from various investments and deposits. This fund is in accordance with Chapter 2, Article IV, of the County Ordinances (§ 2-170). PUBLIC SAFETY NOTE, SERIES 2016 FUND To account for costs associated with the upgrade of the Public Safety System, along with the acquisition of certain public safety equipment. This Note is in accordance with Chapter 125, Florida Statutes; Chapter 2, Article IV, Division 3, Subdivision II, Sec. 2-150 and Chapter 102, Article V, Section 102-205, Code of Ordinances of Pasco County Florida, Section 212.055(2), Florida Statutes.


CAPITAL PROJECTS FUNDS BOARD CAPITAL IMPROVEMENTS FUND To account for the construction costs of renovations, additions, or new construction of various government facilities of diverse types and uses. Financing is provided through operating transfers from several funds, federal and state grants, the sale of bonds, and the interest revenue earned. This fund is in accordance with Chapter 2, Article IV, of the County Code of Ordinances. MOBILITY FEE (WEST, CENTRAL AND EAST AREAS) FUNDS To recoup the proportionate cost of transportation demand generated by all new development. This fee, which includes assessments for roadways, transit, and bicycle/pedestrian facilities, is designed to encourage development of specific land uses in specific locations and promote compact, mixed-use and energy-efficient development. This fund is in accordance with Chapter 2, Article VI, of the County Code of Ordinances and Section 1302.2, Land Development Code. VILLAGES OF PASADENA HILLS (VOPH) TRANSPORTATION FUND To account for the portion of the countywide 33.3% home rule tax increment revenues and the amount equivalent to 24% of the mobility fees and mobility fee surcharges that are generated from the real property in the Villages of Pasadena Hills Dependent District and earmarked for transportation improvements that benefit the Villages of Pasadena Hills, including the planned I-75/Overpass Road interchange. This fund is in accordance with Chapter 2, Article IV, of the County Code of Ordinances (§ 2-334). TOMMYTOWN CAPITAL FUND To account for the infrastructure construction costs of the Tommytown Neighborhood revitalization project funded through the Section 108, Housing and Urban Development (HUD) $13,000,000 note. This fund is in accordance with Chapters 18 and 84 of the County Code of Ordinances. GUARANTEED ENTITLEMENT CIP FUND To account for the construction costs of renovations, additions, or new construction of various government facilities of diverse types and uses. Financing is provided through operating transfers from several funds, federal and state grants, the sale of bonds, a local option sales surtax, and the interest revenue earned. HALF-CENT SALES TAX CONSTRUCTION FUND To account for the construction costs of renovations, additions, or new construction of various government facilities of diverse types and uses. Financing is provided through the half cent sales tax and interest revenue earned. This fund is in accordance with Chapters 202, 212, 218, and 409, Florida Statutes. CAPITAL PROJECTS FUND To account for various multi-year capital projects not otherwise displayed separately.

PASCO COUNTY, FLORIDA GENERAL FUND

COMBINING BALANCE SHEET SEPTEMBER 30, 2016

G-1

RURAL STATEOFFICE OF ECONOMIC AND ENVIRONMENTAL HOUSING TOTAL

GENERAL STATE COURTS DEVELOPMENT PARK LANDS INITIATIVES GENERALFUND ADMIN ADMIN. DEVELOPMENT EDUCATION MANAGEMENT PART. FUND

ASSETS

Cash and cash equivalents 36,798,522$ 42,049$ 42,324$ 13,379$ 8,311$ 1,771,653$ 1,805,391$ 40,481,629$ Investments 26,580,929 27,397 27,576 8,718 5,415 1,154,343 1,176,325 28,980,703 Accounts receivable, net 6,036,820 - 229,606 - - - - 6,266,426 Notes receivable - - - - - - 20,132,869 20,132,869 Assessments receivable 164 - - - - - - 164 Due from: Other funds 18,006,980 - - - - - - 18,006,980 Other governments 2,180,711 - 63,024 - - - 588,662 2,832,397 Advances to other funds 1,534,000 - - - - - - 1,534,000 Inventories 187,350 - - - - - - 187,350 Prepaid items 19,751 19,751 Other assets 10,026 - - - - - - 10,026

Total assets 91,355,253$ 69,446$ 362,530$ 22,097$ 13,726$ 2,925,996$ 23,703,247$ 118,452,295$


Liabilities: Vouchers payable 9,477,950$ 179$ -$ -$ -$ 2,293$ 206,921$ 9,687,343$ Accrued liabilities 8,446,603 - - - - - 3,768 8,450,371 Due to: Other funds 84,390 - - - - - - 84,390 Other governments 166,450 - - - - - 1,696 168,146 Deposits 3,378,829 - - - - - - 3,378,829 Unearned revenue 1,047,560 65,979 - - - - - 1,113,539 Other liabilities 7,625 - - - - - - 7,625 Total liabilities 22,609,407 66,158 - - - 2,293 212,385 22,890,243

DEFERRED INFLOWS OF RESOURCES Revenue unavailable - - 274,051 - - - 23,055,428 23,329,479 Deferred inflows of resources - - 274,051 - - - 23,055,428 23,329,479

Fund balances:Nonspendable: Advances to other funds, inventories and prepaid items 1,741,101 - - - - - - 1,741,101 Spendable:Restricted for: Grant programs and projects - - 88,479 - - - 435,434 523,913 Federal or state law - 3,288 - - 13,726 - - 17,014 Other purposes 96,018 - - - - - - 96,018 Committed to: By ordinances or other - - - - - 2,923,703 - 2,923,703 Assigned to: Contracted services 2,500,000 - - - - - - 2,500,000 Other purposes 3,346,250 - - 22,097 - - - 3,368,347 Unassigned: 61,062,477 - - - - - - 61,062,477 Total fund balances 68,745,846 3,288 88,479 22,097 13,726 2,923,703 435,434 72,232,573

Total liabilities, deferred inflows of resources, and fund balances 91,355,253$ 69,446$ 362,530$ 22,097$ 13,726$ 2,925,996$ 23,703,247$ 118,452,295$


PASCO COUNTY, FLORIDA GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED SEPTEMBER 30, 2016

G-2

RURAL STATEOFFICE OF ECONOMIC AND ENVIRONMENTAL HOUSING TOTAL

GENERAL STATE COURTS DEVELOPMENT PARK LANDS INITIATIVES GENERAL FUND ADMIN ADMIN. DEVELOPMENT EDUCATION MANAGEMENT PART. FUND

REVENUES Taxes 157,709,497$ -$ -$ -$ -$ -$ -$ 157,709,497$ Licenses and permits 229,311 - - - - - - 229,311 Intergovernmental: Federal 625,752 - 54,426 - - - - 680,178 State 30,203,338 - - - - - 2,353,291 32,556,629 Local 94,670 - - - - - - 94,670 Charges for services 30,354,669 - - - - - - 30,354,669 Fines and forfeits 236,378 - - - - - - 236,378 Interest and other earnings 1,525,891 32 172 67 - 8,879 113,699 1,648,740 Miscellaneous 13,387,478 - 12,795 - - - 1,391,116 14,791,389 Total revenues 234,366,984 32 67,393 67 - 8,879 3,858,106 238,301,461

EXPENDITURES Current: General government (noncourt-related) 62,340,948 - - - - - - 62,340,948 Public safety 126,015,643 - - - - - - 126,015,643 Physical environment 366,864 - - - - 6,402 - 373,266 Economic environment 2,434,632 - - - - - 4,028,206 6,462,838 Human services 10,686,586 - - - - - - 10,686,586 Culture and recreation 14,588,701 - - - - - - 14,588,701 Court-related 5,924,546 - - - - - - 5,924,546 Miscellaneous 4,924,969 - - - - - 63,767 4,988,736 Total expenditures 227,282,889 - - - - 6,402 4,091,973 231,381,264

Excess (deficiency) of revenues over expenditures 7,084,095 32 67,393 67 - 2,477 (233,867) 6,920,197

OTHER FINANCING SOURCES (USES) Transfers in 22,583,594 - - - - - - 22,583,594 Transfers out (17,702,405) - - - - - - (17,702,405) Total other financing sources (uses) 4,881,189 - - - - - - 4,881,189

Net change in fund balances 11,965,284 32 67,393 67 - 2,477 (233,867) 11,801,386

Fund balances at beginning of year 56,780,562 3,256 21,086 22,030 13,726 2,921,226 669,301 60,431,187

Fund balances at end of year 68,745,846$ 3,288$ 88,479$ 22,097$ 13,726$ 2,923,703$ 435,434$ 72,232,573$


PASCO COUNTY, FLORIDA PENNY FOR PASCO FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGETED AND ACTUAL


G-3

VARIANCE WITHBUDGETED AMOUNTS FINAL BUDGET

POSITIVEORIGINAL FINAL ACTUAL (NEGATIVE)

REVENUES

Taxes 22,817,459$ 22,817,459$ 26,165,678$ 3,348,219$ Interest and other earnings 205,357 205,357 316,775 111,418 Miscellaneous 417,099 417,099 - (417,099)

Total revenues 23,439,915 23,439,915 26,482,453 3,042,538

EXPENDITURESCapital outlay:

General government (noncourt-related) 20,723,878 20,800,322 5,574,656 15,225,666 Public safety 9,446,700 11,001,557 4,266,029 6,735,528 Physical environment 25,535,197 25,535,197 7,818,868 17,716,329 Transportation 24,085,446 27,798,670 3,847,756 23,950,914 Human services - 35,000 - 35,000 Court-related 199,365 437,365 387,415 49,950

Total capital outlay 79,990,586 85,608,111 21,894,724 63,713,387


OTHER FINANCING SOURCES (USES)

Transfers out (1,918,650) (1,918,650) (2,878,552) (959,902) Note proceeds - - 15,080,000 15,080,000

Total other financing sources (uses) (1,918,650) (1,918,650) 12,201,448 14,120,098




See accompanying independent auditors' report.

PASCO COUNTY, FLORIDA NONMAJOR GOVERNMENTAL FUNDS


G-4

LOCAL BUILDING WEST PASCO EAST PASCOMUNICIPAL OPTION INSPECTIONS LAW LAWSERVICES GAS TAX AND PERMITTING LIBRARY LIBRARY

ASSETS

Cash and cash equivalents 88,572$ 16,321,324$ 5,534,668$ 26,380$ 23,022$ Investments 57,045 10,634,369 3,606,120 17,188 15,001 Accounts receivable, net 49,444 139 - - - Notes receivable - - - - - Assessments receivable - - - - - Due from:

Other funds 399,868 66,110 - - - Other governments 554,000 703,008 - 3,824 3,929

Prepaid items 108 - - - - Inventories - - - - - Other assets - - - - -

Total assets 1,149,037$ 27,724,950$ 9,140,788$ 47,392$ 41,952$


Liabilities:Vouchers payable 440,633$ 214,107$ 210,584$ 595$ 805$ Contracts payable - 314,690 - - - Accrued liabilities 580,161 - 164,165 6,924 16 Due to:

Other funds - 419 - - - Other governments 65,234 - 281,609 - -

Deposits 600 - - - - Unearned revenue - 291,366 - - - Other liabilities - - - - -

Total liabilities 1,086,628 820,582 656,358 7,519 821

Deferred inflows of resources: Unavailable revenue - - - - - Total deferred inflows of resources - - - - -

Fund balances:Nonspendable:

Advances to other funds, inventories and prepaid items 108 - - - -

Spendable:Restricted for:

Bond covenants or debt service - - - - - Grant programs and projects - - - - - Federal or state law 62,301 26,904,368 8,484,430 - - Impact fees - - - - - Other purposes - - - - -

Committed to:Capital projects - - - - - By ordinances or other - - - - -

Assigned to:Other purposes - - - 39,873 41,131

Unassigned: - - - - - Total fund balances (deficit) 62,409 26,904,368 8,484,430 39,873 41,131

Total liabilities, deferred inflows of resources, and fund balances 1,149,037$ 27,724,950$ 9,140,788$ 47,392$ 41,952$


SPECIAL REVENUE FUNDS

G-5

INTER-TOURIST GOVERNMENTAL

ROAD AND LAW DEVELOPMENT SPECIAL RADIO RESTOREBRIDGE ENFORCEMENT TAX ASSESSMENT COMMUNICATION ACT

15,593,501$ 285,826$ 7,628,038$ 8,835,705$ 1,186,512$ 29,534$ 10,160,146 186,233 4,970,147 5,757,018 773,088 19,243

11,540 - - - - - - - - - - - - - - 13,882,113 - -

- - - - - - 1,302,145 800 69,629 - 16,634 -

- - - - 210 - - - - - - - - - - - - -

27,067,332$ 472,859$ 12,667,814$ 28,474,836$ 1,976,444$ 48,777$

603,311$ -$ 28,787$ 522,628$ 50,916$ 199$ 145,147 - - 88,253 - - 207,599 - 6,566 - - 37

- - - - 108 - 34,272 50,488 - 1,894 - -

- - - - - - - - - 166,636 - - - - - - - -

990,329 50,488 35,353 779,411 51,024 236

- - - 13,882,113 - - - - - 13,882,113 - -

- - - - 210 -

- - - - - - - - - - - 48,541

26,077,003 - 12,632,461 13,813,312 1,925,210 - - 422,371 - - - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - - - - -

26,077,003 422,371 12,632,461 13,813,312 1,925,420 48,541

27,067,332$ 472,859$ 12,667,814$ 28,474,836$ 1,976,444$ 48,777$ (Continued)




G-6

QUAIL HUD HOUSINGHOLLOW MUNICIPAL DEPT. OF CRIMINAL AND VILLAGE FIRE SERVICE JUVENILE JUSTICE RECOVERY

MSBU UNIT JUSTICE (FDLE) NSP - II

ASSETS

Cash and cash equivalents 34,912$ 6,253,968$ -$ 37,084$ -$ Investments 22,748 4,074,853 - 24,162 - Accounts receivable, net - - - - 243,161 Notes receivable - - - - 9,285,643 Assessments receivable - - - - - Due from:

Other funds - 47,764 - - - Other governments - 10,507 940 - 1,504,536

Prepaid items - - - - - Inventories - - - - - Other assets - - - - -

Total assets 57,660$ 10,387,092$ 940$ 61,246$ 11,033,340$


Liabilities:Vouchers payable 1,392$ 40,055$ -$ 131$ 22,398$ Contracts payable - - - - - Accrued liabilities - 879,564 - - 16,563 Due to:

Other funds - 2,325 940 - 1,386,012 Other governments - - - 77,846 12,201

Deposits - - - - - Unearned revenue - - - 177 - Other liabilities - - - - -

Total liabilities 1,392 921,944 940 78,154 1,437,174

Deferred inflows of resources: Unavailable revenue - - - - 9,512,788 Total deferred inflows of resources - - - - 9,512,788


Advances to other funds, inventories and prepaid items - - - - -


Bond covenants or debt service - - - - - Grant programs and projects - - - - 83,378 Federal or state law 56,268 9,465,148 - - - Impact fees - - - - - Other purposes - - - - -


Assigned to:Other purposes - - - - -

Unassigned: - - - (16,908) - Total fund balances (deficit) 56,268 9,465,148 - (16,908) 83,378

Total liabilities, deferred inflows of resources, and fund balances 57,660$ 10,387,092$ 940$ 61,246$ 11,033,340$



G-7


HUD DEPT. OFAMERICAN HOUSING COMMUNITY DEPT. OFRECOVERY AND DEPT. OF AFFAIRS TRANS- HOME

& REINV.ACT RECOVERY HUD GRANTS PORTATION PROGRAM

2,995$ 162,577$ -$ -$ 7,848$ 424,426$ 1,952 105,929 - - 5,113 276,540

- 304,506 715,536 - - - - 7,081,120 116,234 - - 11,541,335 - - 1,875,477 - - -

- - - 10,376 - - - - 725,466 39,548 7,819,167 1,232,088 - - - - - - - - - - - - - 679,595 - - - -

4,947$ 8,333,727$ 3,432,713$ 49,924$ 7,832,128$ 13,474,389$

13$ 40,212$ 230,247$ 30,659$ 482,164$ 22,955$ - - - - 545,580 - - - 7,655 1,354 - -

- - 485,581 668,888 3,601,250 - - 10 29,028 - - 60 - - - - - -

4,932 - - 102,001 982,354 - - - - - - -

4,945 40,222 752,511 802,902 5,611,348 23,015

- 7,354,255 2,990,420 - - 11,510,181 - 7,354,255 2,990,420 - - 11,510,181

- - - - - -

- - - - - - 2 939,250 - - - 1,941,193 - - - - 2,220,780 - - - - - - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - (310,218) (752,978) - - 2 939,250 (310,218) (752,978) 2,220,780 1,941,193

4,947$ 8,333,727$ 3,432,713$ 49,924$ 7,832,128$ 13,474,389$ (Continued)



G-8


HUD HOUSING U.S. DEPT. OF

AND HEALTH AND DIVISION LIBRARYRECOVERY HUMAN OF LIBRARY COOPERATIVE

NSP III SERVICES GRANTS SERVICES GRANT

ASSETS

Cash and cash equivalents 81,115$ -$ -$ 82$ 2,372$ Investments 52,851 - - 54 1,546 Accounts receivable, net 2,016 - - - - Notes receivable 1,497,565 - - - - Assessments receivable - - - - - Due from:

Other funds - - - - - Other governments 1,491,751 151,140 - - -


Total assets 3,125,298$ 151,140$ -$ 136$ 3,918$


Liabilities:Vouchers payable 13,006$ 117,249$ 405,873$ 162$ 3,918$ Contracts payable - - 51,901 - - Accrued liabilities 6,586 672 - - - Due to:

Other funds - 183,947 45,032 - - Other governments - - - - -

Deposits - - - - - Unearned revenue - - - - - Other liabilities - - - - -

Total liabilities 19,592 301,868 502,806 162 3,918

Deferred inflows of resources: Unavailable revenue 1,498,019 - - - - Total deferred inflows of resources 1,498,019 - - - -




Bond covenants or debt service - - - - - Grant programs and projects 1,607,687 - - - - Federal or state law - - - - - Impact fees - - - - - Other purposes - - - - -



Unassigned: - (150,728) (502,806) (26) - Total fund balances (deficit) 1,607,687 (150,728) (502,806) (26) -

Total liabilities, deferred inflows of resources, and fund balances 3,125,298$ 151,140$ -$ 136$ 3,918$


G-9

FLORIDA DEPT. OF DEPT. OF ELDER TRANS- PUBLIC TITLE III-B

ELDER AFFAIRS U.S. DEPT. PORTATION TRANS- TRANS-AFFAIRS (FEDERAL) OF JUSTICE SERVICES PORTATION PORTATION

125$ -$ 13,569$ -$ 99,850$ -$ 81 - 8,841 - 65,058 -

- 7,504 - 4,408 125,156 23,147 - - - - - - - - - - - -

- - - - - - 1 - 63,926 126,167 - 21 - - - 608 - - - - - - - - - - - - - -

207$ 7,504$ 86,336$ 131,183$ 290,064$ 23,168$

-$ 5,862$ 16,916$ -$ 112,312$ -$ - - - - - - - - - - 110,018 -

- 11,799 - 69,198 - 23,170 - - 28,181 - - - - - - - - -

245 65 868 61,985 - - - - - - - -

245 17,726 45,965 131,183 222,330 23,170

- - - - - - - - - - - -

- - - 608 - -

- - - - - - - - 40,371 - - - - - - - - - - - - - - - - - - - 67,734 -

- - - - - - - - - - - -

- - - - - - (38) (10,222) - (608) - (2) (38) (10,222) 40,371 - 67,734 (2)

207$ 7,504$ 86,336$ 131,183$ 290,064$ 23,168$ (Continued)




G-10

OFFICE OFDEPT. OF DEPT. OF TOURISM, TRADE, DEPT. OF

CHILDREN ELDERLY HOMELAND AND ECONOMIC ENVIRONMENTALAND FAMILIES NUTRITION SECURITY DEVELOPMENT PROTECTION

ASSETS

Cash and cash equivalents 85,371$ 50,409$ -$ -$ 652,427$ Investments 55,625 32,845 - - 425,098 Accounts receivable, net - 212,671 - - - Notes receivable - - - - - Assessments receivable - - - - - Due from:

Other funds 15,979 - 2,325 1,529,674 - Other governments - 264,820 - 150,828 676


Total assets 156,975$ 560,745$ 2,325$ 1,680,502$ 1,078,201$


Liabilities:Vouchers payable -$ -$ 60$ -$ 234$ Contracts payable - - - - - Accrued liabilities - - 2,899 - - Due to:

Other funds 45,439 310,770 86,390 2,954,588 - Other governments - - - - -

Deposits - - - - - Unearned revenue 89,479 1,483 - - 602 Other liabilities - - - - -

Total liabilities 134,918 312,253 89,349 2,954,588 836





Bond covenants or debt service - - - - - Grant programs and projects 22,057 248,492 - - 1,077,365 Federal or state law - - - - - Impact fees - - - - - Other purposes - - - - -



Unassigned: - - (87,024) (1,274,086) - Total fund balances (deficit) 22,057 248,492 (87,024) (1,274,086) 1,077,365

Total liabilities, deferred inflows of resources, and fund balances 156,975$ 560,745$ 2,325$ 1,680,502$ 1,078,201$



G-11

U.S. FLORIDAENVIRONMENTAL 911 BOATING

PROTECTION AFFORDABLE WILLIAMSBURG EMERGENCY AND U.S. 19AGENCY HOUSING WEST MSTU SERVICES IMPROVEMENT CONCURRENCY

-$ 183,298$ 15,603$ 1,760,033$ 878,167$ 714,662$ - 119,430 10,167 1,146,772 572,181 465,647 - - - 164,301 - - - - - - - - - - - - - -

- - - - - - - - - - 9,182 - - - - - - - - - - - - - - - - - - - -$ 302,728$ 25,770$ 3,071,106$ 1,459,530$ 1,180,309$

25,002$ -$ 3,203$ 60,437$ 305,473$ -$ - - - - 25,894 - - - - 6,739 - -

73,040 - - - - - - - - - - - - - - - - -

20 - - - - - - - - - - -

98,062 - 3,203 67,176 331,367 -

- - - - - - - - - - - -

- - - - - -

- - - - - - - - - - 1,128,163 - - - 22,567 3,003,930 - - - - - - - 1,180,309 - - - - - -

- - - - - - - 302,728 - - - -

- - - - - - (98,062) - - - - - (98,062) 302,728 22,567 3,003,930 1,128,163 1,180,309

-$ 302,728$ 25,770$ 3,071,106$ 1,459,530$ 1,180,309$ (Continued)




G-12

TRANS- TRANS- TRANS- COURTPORTATION PORTATION PORTATION FACILITIESIMPACT FEE IMPACT FEE IMPACT FEE SCHOOL IMPROVEMENT

WEST CENTRAL EAST IMPACT FEES 939.185 F.S.

ASSETS

Cash and cash equivalents 7,511,008$ 36,915,495$ 5,073,372$ 3,568,810$ 6,369,450$ Investments 4,893,894 24,052,767 3,305,621 2,325,304 4,150,098 Accounts receivable, net - - 1,218 - - Notes receivable - - - - - Assessments receivable - - - - - Due from:

Other funds - - 57,148 - - Other governments - - - - 71,451


Total assets 12,404,902$ 60,968,262$ 8,437,359$ 5,894,114$ 10,590,999$


Liabilities:Vouchers payable 107,825$ 38,588$ 11,082$ 5,883,234$ -$ Contracts payable 241,122 48,259 114,950 - - Accrued liabilities - - - - - Due to:

Other funds - 1,529,674 - - - Other governments - - - 6,167 -

Deposits - - - - - Unearned revenue 50,245 846,181 - - - Other liabilities - - - - -

Total liabilities 399,192 2,462,702 126,032 5,889,401 -





Bond covenants or debt service - - - - - Grant programs and projects - - - - - Federal or state law - - - - 10,590,999 Impact fees 12,005,710 58,505,560 8,311,327 4,713 - Other purposes - - - - -



Unassigned: - - - - - Total fund balances (deficit) 12,005,710 58,505,560 8,311,327 4,713 10,590,999

Total liabilities, deferred inflows of resources, and fund balances 12,404,902$ 60,968,262$ 8,437,359$ 5,894,114$ 10,590,999$



G-13

ALCOHOLAND MULTI-MODAL LACOOCHEE/ COMBAT PARK

OTHER TEEN TRANS- TRILBY IMPACT IMPACT FEEDRUG ABUSE COURT PORTATION REDEVELOPMENT FEE WEST

-$ 76,130$ 4,995,462$ 5,133$ 2,725,866$ 5,578,525$ - 49,604 3,254,857 3,345 1,776,073 3,634,760 - - - - - - - - - - - - - - - - - -

- - - - - - 1,105 14,866 - - - -

- - - - - - - - - - - - - - - - - -

1,105$ 140,600$ 8,250,319$ 8,478$ 4,501,939$ 9,213,285$

-$ 706$ -$ -$ 497$ 1,691,805$ - - - - - - - 4,937 - - - -

440 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

440 5,643 - - 497 1,691,805

- - - - - - - - - - - -

- - - - - -

- - - - - - - - - - - -

665 134,957 - - - - - - - - 4,501,442 7,521,480 - - - - - -

- - - - - - - - - - - -

- - 8,250,319 8,478 - - - - - - - -

665 134,957 8,250,319 8,478 4,501,442 7,521,480

1,105$ 140,600$ 8,250,319$ 8,478$ 4,501,939$ 9,213,285$ (Continued)




G-14

PARK PARK RESCUE HURRICANEIMPACT FEE IMPACT FEE IMPACT LIBRARY MITIGATION

CENTRAL EAST FEE IMPACT FEE FEE

ASSETS

Cash and cash equivalents 3,472,651$ 415,089$ 3,496,348$ 1,652,684$ 165,443$ Investments 2,262,651 270,457 2,278,090 1,076,827 107,797 Accounts receivable, net - - - - - Notes receivable - - - - - Assessments receivable - - - - - Due from:

Other funds - - - - - Other governments - - - - -


Total assets 5,735,302$ 685,546$ 5,774,438$ 2,729,511$ 273,240$


Liabilities:Vouchers payable 31,225$ -$ 211,044$ 42,625$ -$ Contracts payable - - - - - Accrued liabilities - - - - - Due to:


Deposits - - - - - Unearned revenue 844,821 - - - - Other liabilities - - - - -

Total liabilities 876,046 - 211,044 42,625 -





Bond covenants or debt service - - - - - Grant programs and projects - - - - - Federal or state law - - - - - Impact fees 4,859,256 685,546 5,563,394 2,686,886 273,240 Other purposes - - - - -



Unassigned: - - - - - Total fund balances (deficit) 4,859,256 685,546 5,563,394 2,686,886 273,240

Total liabilities, deferred inflows of resources, and fund balances 5,735,302$ 685,546$ 5,774,438$ 2,729,511$ 273,240$



G-15

CLERK & SUPERVISORCOMPTROLLER SHERIFF OF ELECTIONS

STORMWATER FOX RIDGE LIGHTING SPECIAL SPECIAL SPECIALMANAGEMENT MSBU TREE DISTRICTS REVENUE REVENUE REVENUE TOTAL

5,697,551$ 220,661$ 796,631$ 2,131,097$ 4,257,817$ 6,524,430$ -$ 168,663,628$ 3,712,313 143,775 519,056 1,388,544 - - - 102,868,924

- - - - - 85,860 - 1,950,607 - - - - - - - 29,521,897 - - - 133,309 - - - 15,890,899

- - - - - 29,683 32,234 2,191,161 33,203 - - - - 402,876 - 16,768,234

90 - - - 10,680 - - 11,696 - - - - - 462,721 - 462,721 - - - - - - - 679,595

9,443,157$ 364,436$ 1,315,687$ 3,652,950$ 4,268,497$ 7,505,570$ 32,234$ 339,009,362$

403,046$ -$ 14,517$ 353,070$ 238,514$ 373,815$ -$ 13,414,091$ 170,437 - - - - - - 1,746,233 116,821 - - - 270,665 145,924 - 2,535,865

- - - - - - 479,203 - 11,958,213

36 - - 470 - 4,766 - 592,262 - - - - 781 - - 1,381 - - - 911,770 13,487 535,603 26,334 4,930,654 - - - - 10,912 - - 10,912

690,340 - 14,517 1,265,310 534,359 1,539,311 26,334 35,189,611

- - - - - - - 46,747,776 - - - - - - - 46,747,776

90 - - - 10,680 462,721 - 474,417

- - - - - - - - - - - 2,387,640 - - 5,900 9,530,039

8,752,727 - - - - - - 124,147,126 - - - - - - - 106,521,234 - 364,436 - - 3,727,738 5,503,538 - 9,663,446

- - - - - - - - - - 1,301,170 - - - - 1,603,898

- - - - - - - 8,339,801 - - - - (4,280) - - (3,207,986)

8,752,817 364,436 1,301,170 2,387,640 3,734,138 5,966,259 5,900 257,071,975

9,443,157$ 364,436$ 1,315,687$ 3,652,950$ 4,268,497$ 7,505,570$ 32,234$ 339,009,362$ (Continued)




G-16

DEBT SERVICE FUNDS

GUARANTEED GUARANTEEDHUD ENTITLEMENT HALF-CENT ENTITLEMENT HALF-CENT

SECTION 108 REFUNDING SALES TAX REFUNDING SALES TAXNOTE REVENUE BONDS REVENUE BONDS REVENUE BONDS REVENUE BONDS

SERIES 2006 SERIES 2003 SERIES 2003 SERIES 2013 SERIES 2013

ASSETS

Cash and cash equivalents 1,199,017$ 635,342$ 10$ 265,627$ 1,626,126$ Investments - 413,966 6 173,072 1,059,524 Accounts receivable, net 246 - - - - Notes receivable - - - - - Assessments receivable - - - - - Due from:



Total assets 1,199,263$ 1,049,308$ 16$ 438,699$ 2,685,650$


Liabilities:Vouchers payable -$ -$ -$ -$ -$ Contracts payable - - - - - Accrued liabilities - - - - - Due to:

Other funds 51,906 - - - 2,258,711 Other governments - - - - -

Deposits - - - - - Unearned revenue - - - - - Other liabilities - - - - -

Total liabilities 51,906 - - - 2,258,711





Bond covenants or debt service 1,147,357 1,049,308 16 438,699 426,939 Grant programs and projects - - - - - Federal or state law - - - - - Impact fees - - - - - Other purposes - - - - -



Unassigned: - - - - - Total fund balances (deficit) 1,147,357 1,049,308 16 438,699 426,939

Total liabilities, deferred inflows of resources, and fund balances 1,199,263$ 1,049,308$ 16$ 438,699$ 2,685,650$


G-17

DEBT SERVICE FUNDS CAPITAL PROJECTS FUNDS

GUARANTEED BOARD MOBILITY ENTITLEMENT PUBLIC SAFETY CAPITAL FEE

LOAN NOTE IMPROVE- DISTRICT 1SERIES 2014 SERIES 2016 TOTAL MENTS WEST

2,797,972$ -$ 6,524,094$ 3,566,542$ 8,925,874$ 1,823,054 - 3,469,622 2,323,827 5,815,769

- - 246 - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - -

4,621,026$ -$ 9,993,962$ 5,890,369$ 14,741,643$

-$ -$ -$ 118,366$ 1,113,910$ - - - 4,435 128,724 - - - - -

- 3,956,176 - 6,266,793 2,567 -

- - - 126 - - - - - 350,219 - - - - - - - - - -

3,956,176 - 6,266,793 125,494 1,592,853

- - - - - - - - - -

- - - - -

664,850 - 3,727,169 - - - - - - - - - - - 13,148,790 - - - - - - - - - -

- - - 5,764,875 - - - - - -

- - - - - - - - - -

664,850 - 3,727,169 5,764,875 13,148,790

4,621,026$ -$ 9,993,962$ 5,890,369$ 14,741,643$ (Continued)



G-18

CAPITAL PROJECTS FUNDS

MOBILITY MOBILITY FEE FEE VOPH TOMMY - GUARANTEED

DISTRICT 2 DISTRICT 3 TRANS- TOWN ENTITLEMENTCENTRAL EAST PORTATION CAPITAL CIP

ASSETS

Cash and cash equivalents 12,146,365$ 12,446,985$ 247,111$ 5,543,829$ 665$ Investments 7,914,121 8,109,993 161,009 - 434 Accounts receivable, net - - - - - Notes receivable - - - - - Assessments receivable - - - - - Due from:



Total assets 20,060,486$ 20,556,978$ 408,120$ 5,543,829$ 1,099$


Liabilities:Vouchers payable 270,016$ 54,688$ -$ 3,800$ -$ Contracts payable 77,196 - - - - Accrued liabilities - - - - - Due to:

Other funds - - - 1,886,178 - Other governments - - - - -

Deposits - 284,307 - - - Unearned revenue - - - - - Other liabilities - - - - -

Total liabilities 347,212 338,995 - 1,889,978 -





Bond covenants or debt service - - - - - Grant programs and projects - - - - - Federal or state law 19,713,274 20,217,983 408,120 3,653,851 - Impact fees - - - - - Other purposes - - - - -

Committed to:Capital projects - - - - 1,099 By ordinances or other - - - - -


Unassigned: - - - - - Total fund balances (deficit) 19,713,274 20,217,983 408,120 3,653,851 1,099

Total liabilities, deferred inflows of resources, and fund balances 20,060,486$ 20,556,978$ 408,120$ 5,543,829$ 1,099$


G-19


TOTALHALF-CENT NONMAJORSALES TAX CAPITAL GOVERNMENTAL

CONSTRUCTION PROJECTS TOTAL FUNDS

1,806,974$ 106,487$ 44,790,832$ 219,978,554$ 1,177,357 69,383 25,571,893 131,910,439

- - - 1,950,853 - - - 29,521,897 - - - 15,890,899

- - - - 2,191,161 - - - 16,768,234 - - - 11,696 - - - 462,721 - - - 679,595

2,984,331$ 175,870$ 70,362,725$ 419,366,049$

9,968$ 5,292,602$ 6,863,350$ 20,277,441$ - - 210,355 1,956,588 - - - 2,535,865

- - - 1,888,745 20,113,751 - - 126 592,388 - - 634,526 635,907 - - - 4,930,654 - - - 10,912

9,968 5,292,602 9,597,102 51,053,506

- - - 46,747,776 - - - 46,747,776

- - - 474,417

- - - 3,727,169 - - - 9,530,039

2,974,363 - 60,116,381 184,263,507 - - - 106,521,234 - - - 9,663,446

- - 5,765,974 5,765,974 - - - 1,603,898

- - - 8,339,801 - (5,116,732) (5,116,732) (8,324,718)

2,974,363 (5,116,732) 60,765,623 321,564,767

2,984,331$ 175,870$ 70,362,725$ 419,366,049$


COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES


G-20

LOCAL BUILDING WEST PASCO EAST PASCOMUNICIPAL OPTION INSPECTIONS LAW LAWSERVICES GAS TAX AND PERMITTING LIBRARY LIBRARY

REVENUESTaxes 4,894,076$ 8,449,505$ 102,775$ -$ -$ Special assessments - - - - - Licenses and permits 1,740,441 - 6,364,011 - - Intergovernmental:

Federal - - - - - State 194,127 - - - - Local - - - - -

Charges for services 4,277,626 - 3,830,653 71,796 59,326 Fines and forfeitures 1,278 - 43,001 - - Interest and other earnings 82,992 103,123 35,499 124 83 Miscellaneous 414,879 1,158,633 273,560 - -

Total revenues 11,605,419 9,711,261 10,649,499 71,920 59,409

EXPENDITURESCurrent:

General government (noncourt-related) 6,295,693 - 1,622,186 - - Public safety 5,689,299 - 5,262,255 - - Physical environment 167,973 - - - - Transportation 1,550,247 4,186,690 - - - Economic environment 144,023 - - - - Human services 2,251,538 - - - - Culture and recreation - - - - - Court-related - - - 63,871 38,338 Miscellaneous 3,219,424 33,310 1,069,261 - -

Capital outlayDebt service:

Principal - - - - - Interest and debt service charges - - - - -

Total expenditures 19,318,197 4,220,000 7,953,702 63,871 38,338

Excess (deficiency) of revenues over expenditures (7,712,778) 5,491,261 2,695,797 8,049 21,071

OTHER FINANCING SOURCES (USES)Transfers in 903,072 - - - - Transfers out (9,543) (3,021,893) - - - Note proceeds - - - - -

Total other financing sources (uses) 893,529 (3,021,893) - - -

Net change in fund balances (6,819,249) 2,469,368 2,695,797 8,049 21,071

Fund balances (deficit) at beginning of year 6,881,658 24,435,000 5,788,633 31,824 20,060

Fund balances (deficit) at end of year 62,409$ 26,904,368$ 8,484,430$ 39,873$ 41,131$



G-21

INTER-TOURIST GOVERNMENTAL

ROAD AND LAW DEVELOPMENT SPECIAL RADIO RESTORE BRIDGE ENFORCEMENT TAX ASSESSMENT COMMUNICATION ACT

13,944,626$ -$ 1,078,399$ -$ -$ -$ 6,218 - - 1,476,839 - -

- - - - - -

- - - - - - 5,845,692 - - - - -

- - - - - - 802,330 - 50,000 - 249,728 -

- 89,050 - - - - 126,565 2,100 38,998 535,657 5,963 333 46,808 - 2,344 2,480 - -

20,772,239 91,150 1,169,741 2,014,976 255,691 333

- - - - 242,249 - - 91,480 - - 42,731 - - - - - - -

14,624,134 - - 3,605,247 - - - - 706,089 35 - 8,676 - - - - - - - - 22,694 - - - - - - - - -

969,296 - 29,132 86,140 488 -

- - - - - - - - - - - -

15,593,430 91,480 757,915 3,691,422 285,468 8,676

5,178,809 (330) 411,826 (1,676,446) (29,777) (8,343)

4,821,893 - - 3,873,434 - 21,233 (373,434) (116,295) (150,870) - - -

- - - - - - 4,448,459 (116,295) (150,870) 3,873,434 - 21,233

9,627,268 (116,625) 260,956 2,196,988 (29,777) 12,890

16,449,735 538,996 12,371,505 11,616,324 1,955,197 35,651

26,077,003$ 422,371$ 12,632,461$ 13,813,312$ 1,925,420$ 48,541$ (Continued)





G-22

QUAIL HUD HOUSINGHOLLOW MUNICIPAL DEPT. OF CRIMINAL AND VILLAGE FIRE SERVICE JUVENILE JUSTICE RECOVERY

MSBU UNIT JUSTICE (FDLE) NSP - II

REVENUESTaxes -$ 35,178,016$ -$ -$ -$ Special assessments 5,706 - - - - Licenses and permits - 1,630 - - - Intergovernmental:

Federal - - - 95,804 1,365,022 State - 40,168 - - - Local - - - - -

Charges for services - 86,810 - - - Fines and forfeitures - - - - - Interest and other earnings 216 442,681 - 71 1,463 Miscellaneous - 1,025 - - 154,627

Total revenues 5,922 35,750,330 - 95,875 1,521,112


General government (noncourt-related) - - - - - Public safety - 32,535,722 - 112,764 - Physical environment - - - - - Transportation 6,381 - - - - Economic environment - - - - 1,434,533 Human services - - - - - Culture and recreation - - - - - Court-related - - - - - Miscellaneous 831 841,930 - - -

Capital outlay - Debt service:


Total expenditures 7,212 33,377,652 - 112,764 1,434,533

Excess (deficiency) of revenues over expenditures (1,290) 2,372,678 - (16,889) 86,579

OTHER FINANCING SOURCES (USES)Transfers in - - - - - Transfers out - - - - - Note proceeds - - - - -

Total other financing sources (uses) - - - - -

Net change in fund balances (1,290) 2,372,678 - (16,889) 86,579

Fund balances (deficit) at beginning of year 57,558 7,092,470 - (19) (3,201)

Fund balances (deficit) at end of year 56,268$ 9,465,148$ -$ (16,908)$ 83,378$



G-23

HUD DEPT. OFAMERICAN HOUSING COMMUNITY DEPT. OFRECOVERY AND DEPT. OF AFFAIRS TRANS- HOME

& REINV. ACT RECOVERY HUD GRANTS PORTATION PROGRAM

-$ -$ -$ -$ -$ -$ - - 143,650 - - - - - - - - -

- - 1,998,773 126,350 5,226,212 1,512,349 - - - 112,305 7,602,677 - - - - - - - - 10,136 38,827 - - - - - - - - - 2 26,922 41,654 - - 15,280 - 142,138 25,911 - - 1,496,977 2 179,196 2,248,815 238,655 12,828,889 3,024,606

- - - - 706,578 - - - - 980,201 1,902 - - - - - - - - - - - 10,772,883 - - 225,053 1,331,745 - - 1,077,664 - - - 14,000 - - - - - - - - - - - - - - - - 145,312 - - 5,749

- -

- - - - - - - - - - - - - 225,053 1,477,057 994,201 11,481,363 1,083,413

2 (45,857) 771,758 (755,546) 1,347,526 1,941,193

- - - - 873,254 - - - (1,081,976) - - - - - - - - - - - (1,081,976) - 873,254 -

2 (45,857) (310,218) (755,546) 2,220,780 1,941,193

- 985,107 - 2,568 - -

2$ 939,250$ (310,218)$ (752,978)$ 2,220,780$ 1,941,193$ (Continued)





G-24

HUD HOUSING U.S. DEPT. OFAND HEALTH AND DIVISION LIBRARY

RECOVERY HUMAN OF LIBRARY COOPERATIVENSP III SERVICES GRANTS SERVICES GRANT

REVENUESTaxes -$ -$ -$ -$ -$ Special assessments - - - - - Licenses and permits - - - - - Intergovernmental:

Federal 1,188,417 508,982 135,095 12,000 - State - - - - 168,253 Local - - - - -

Charges for services 400 - - - - Fines and forfeitures - - - - - Interest and other earnings - - - - - Miscellaneous 807,288 - - - -

Total revenues 1,996,105 508,982 135,095 12,000 168,253


General government (noncourt-related) - - - - - Public safety - - - - - Physical environment - - 637,901 - - Transportation - - - - - Economic environment 388,418 - - - - Human services - - - - - Culture and recreation - - - 12,000 168,253 Court-related - 659,710 - - - Miscellaneous - - - - -



Total expenditures 388,418 659,710 637,901 12,000 168,253

Excess (deficiency) of revenues over expenditures 1,607,687 (150,728) (502,806) - -



Net change in fund balances 1,607,687 (150,728) (502,806) - -

Fund balances (deficit) at beginning of year - - - (26) -

Fund balances (deficit) at end of year 1,607,687$ (150,728)$ (502,806)$ (26)$ -$



G-25

FLORIDA DEPT. OF DEPT. OF ELDER TRANS- PUBLIC TITLE III-B

ELDER AFFAIRS U.S. DEPT. PORTATION TRANS- TRANS-AFFAIRS (FEDERAL) OF JUSTICE SERVICES PORTATION PORTATION

-$ -$ -$ -$ -$ -$ - - - - - - - - - - - -

- 58,947 147,372 - - 262,508 - - - - - 48,406 - - - - - - - - - - 772,754 92 - - - - - - - - - - - - - - - - 137,318 11,907 - 58,947 147,372 - 910,072 322,913

- - - - - - - - 106,892 - - - - - - - - - - - - - 724,899 363,922 - - - - - - - 69,169 - - - - - - - - - - - - - - - - - - 109 - 50,591 - - - -

- - - - - - - - - - - - - 69,169 107,001 - 775,490 363,922

- (10,222) 40,371 - 134,582 (41,009)

- - - - - 41,007 - - - - - - - - - - - - - - - - - 41,007

- (10,222) 40,371 - 134,582 (2)

(38) - - - (66,848) -

(38)$ (10,222)$ 40,371$ -$ 67,734$ (2)$ (Continued)





G-26

OFFICE OFDEPT. OF DEPT. OF TOURISM, TRADE, DEPT. OF

CHILDREN ELDERLY HOMELAND AND ECONOMIC ENVIRONMENTALAND FAMILIES NUTRITION SECURITY DEVELOPMENT PROTECTION

REVENUESTaxes -$ -$ -$ -$ -$ Special assessments - - - - - Licenses and permits - - - - - Intergovernmental:

Federal - 1,120,674 - - - State 53,165 121,238 - - 129,243 Local - - - - -

Charges for services - - - - - Fines and forfeitures - - - - - Interest and other earnings 1,296 - - - - Miscellaneous - 14,906 - - 15,699

Total revenues 54,461 1,256,818 - - 144,942


General government (noncourt-related) - - - - - Public safety 32,195 - 87,024 - - Physical environment - - - - 12,690 Transportation - - - - - Economic environment - - - 1,274,086 - Human services - 1,008,326 - - - Culture and recreation - - - - - Court-related - - - - - Miscellaneous - - - - -



Total expenditures 32,195 1,008,326 87,024 1,274,086 12,690

Excess (deficiency) of revenues over expenditures 22,266 248,492 (87,024) (1,274,086) 132,252



Net change in fund balances 22,266 248,492 (87,024) (1,274,086) 132,252

Fund balances (deficit) at beginning of year (209) - - - 945,113

Fund balances (deficit) at end of year 22,057$ 248,492$ (87,024)$ (1,274,086)$ 1,077,365$



G-27

U.S. FLORIDAENVIRONMENTAL 911 BOATING

PROTECTION AFFORDABLE WILLIAMSBURG EMERGENCY AND U.S. 19AGENCY HOUSING WEST MSTU SERVICES IMPROVEMENT CONCURRENCY

-$ -$ -$ -$ -$ -$ - - 16,452 - - 1,814 - - - - - -

- - - - - - - - - 2,192,334 125,602 - - - - - - - - 65,832 - 3,511 - - - - - - - - - 891 274 8,456 5,450 3,584 - - - - - - - 66,723 16,726 2,204,301 131,052 5,398

- - - - - - - - - 1,329,482 - -

98,062 - 13,241 - - - - - - - - - - 70,000 - - - - - - - - - - - - - - 587,317 - - - - - - - - - 1,004 13,522 - -

- - - - -

- - - - - - - - - - - -

98,062 70,000 14,245 1,343,004 587,317 -

(98,062) (3,277) 2,481 861,297 (456,265) 5,398

- - - - - - - - (901,333) - - - - - - - - - - - (901,333) - -

(98,062) (3,277) 2,481 (40,036) (456,265) 5,398

- 306,005 20,086 3,043,966 1,584,428 1,174,911

(98,062)$ 302,728$ 22,567$ 3,003,930$ 1,128,163$ 1,180,309$ (Continued)





G-28

TRANS- TRANS- TRANS- COURTPORTATION PORTATION PORTATION FACILITIESIMPACT FEE IMPACT FEE IMPACT FEE SCHOOL IMPROVEMENT

WEST CENTRAL EAST IMPACT FEES 939.185 F.S.

REVENUESTaxes -$ -$ -$ -$ -$ Special assessments 18,460 10,302 - 11,496,150 - Licenses and permits - - - - - Intergovernmental:

Federal - - - - - State - - - - - Local - - - - -

Charges for services - - - - 937,404 Fines and forfeitures - - - - - Interest and other earnings 38,516 184,493 26,518 - 36,868 Miscellaneous - - 143,585 - -

Total revenues 56,976 194,795 170,103 11,496,150 974,272


General government (noncourt-related) - - - 11,487,132 - Public safety - - - - - Physical environment - - - - - Transportation 399,485 308,779 523,728 - - Economic environment - - - - - Human services - - - - - Culture and recreation - - - - - Court-related - - - - 47,979 Miscellaneous - - - - -

Capital outlay - - - - - Debt service:


Total expenditures 399,485 308,779 523,728 11,487,132 47,979

Excess (deficiency) of revenues over expenditures (342,509) (113,984) (353,625) 9,018 926,293



Net change in fund balances (342,509) (113,984) (353,625) 9,018 926,293

Fund balances (deficit) at beginning of year 12,348,219 58,619,544 8,664,952 (4,305) 9,664,706

Fund balances (deficit) at end of year 12,005,710$ 58,505,560$ 8,311,327$ 4,713$ 10,590,999$



G-29

ALCOHOLAND MULTI-MODAL LACOOCHEE/ COMBAT PARK

OTHER TEEN TRANS- TRILBY IMPACT IMPACT FEEDRUG ABUSE COURT PORTATION REDEVELOPMENT FEE WEST

-$ -$ -$ -$ -$ -$ - - - - 931,741 750,532 - - - - - -

- - - - - - - - - - - - - - - - - -

16,825 201,183 - - - - - - - - - -

39 478 92,440 100 18,929 32,635 - - - - - -

16,864 201,661 92,440 100 950,670 783,167

- - - - - - - - - - 3,356 - - - - - - - - - 213,945 - - - - - - - - -

13,637 - - - - - - - - - - 2,478,631 - 156,581 - - - - - - - - - - - - - - -

- - - - - - - - - - - -

13,637 156,581 213,945 - 3,356 2,478,631

3,227 45,080 (121,505) 100 947,314 (1,695,464)

- - 5,077,089 5,492 - - - - - - - - - - - - - - - - 5,077,089 5,492 - -

3,227 45,080 4,955,584 5,592 947,314 (1,695,464)

(2,562) 89,877 3,294,735 2,886 3,554,128 9,216,944

665$ 134,957$ 8,250,319$ 8,478$ 4,501,442$ 7,521,480$ (Continued)





G-30

PARK PARK RESCUE HURRICANEIMPACT FEE IMPACT FEE IMPACT LIBRARY MITIGATION

CENTRAL EAST FEE IMPACT FEE FEE

REVENUESTaxes -$ -$ -$ -$ -$ Special assessments 1,601,182 37,051 644,867 387,058 42,619 Licenses and permits - - - - - Intergovernmental:

Federal - - - - - State - - - - - Local - - - - -

Charges for services - - - - - Fines and forfeitures - - - - - Interest and other earnings 22,711 2,185 21,262 10,116 984 Miscellaneous - - - - -

Total revenues 1,623,893 39,236 666,129 397,174 43,603


General government (noncourt-related) - - - - - Public safety - - 291,775 - - Physical environment - - - - - Transportation - - - - - Economic environment - - - - - Human services - - - - - Culture and recreation 102,580 5,794 - 42,513 - Court-related - - - - - Miscellaneous - - - - -



Total expenditures 102,580 5,794 291,775 42,513 -

Excess (deficiency) of revenues over expenditures 1,521,313 33,442 374,354 354,661 43,603

OTHER FINANCING SOURCES (USES)Transfers in 292,853 - - - - Transfers out - - - - - Note proceeds - - - - -

Total other financing sources (uses) 292,853 - - - -

Net change in fund balances 1,814,166 33,442 374,354 354,661 43,603

Fund balances (deficit) at beginning of year 3,045,090 652,104 5,189,040 2,332,225 229,637

Fund balances (deficit) at end of year 4,859,256$ 685,546$ 5,563,394$ 2,686,886$ 273,240$



G-31

CLERK &COMPTROLLER SHERIFF

STORMWATER FOX RIDGE LIGHTING SPECIAL SPECIALMANAGEMENT MSBU TREE DISTRICTS REVENUE REVENUE

59,396$ -$ -$ -$ -$ -$ 14,423,855 251,454 - 3,658,671 - -

- - - - - -

- - - - - 672,478 - - - - 4,512,217 7,463,968

101,237 - - - - - 10,050 - 32,577 680 7,133,063 2,294,782

- - - - 1,847,443 480,721 176,629 3,796 4,037 54,759 8,752 1,024 183,828 - - - 469,950 515,593

14,954,995 255,250 36,614 3,714,110 13,971,425 11,428,566

- - - - 831,351 - - 79,681 - - - 10,899,021

285,123 - 188,535 - - - 15,918,074 - - 3,237,309 - -

- - - - - - - - - - - - - - - - - - - - - - 13,312,298 -

221,801 - - - - - - - - - - -

- - - - - - - - - - - -

16,424,998 79,681 188,535 3,237,309 14,143,649 10,899,021

(1,470,003) 175,569 (151,921) 476,801 (172,224) 529,545

- - - - 724,402 - (93,631) - - (69,989) (124,045) -

- - - - - - (93,631) - - (69,989) 600,357 -

(1,563,634) 175,569 (151,921) 406,812 428,133 529,545

10,316,451 188,867 1,453,091 1,980,828 3,306,005 5,436,714

8,752,817$ 364,436$ 1,301,170$ 2,387,640$ 3,734,138$ 5,966,259$ (Continued)





G-32

SPECIAL REVENUE FUNDS DEBT SERVICE FUNDSGUARANTEED

SUPERVISOR HUD ENTITLEMENT HALF-CENTOF ELECTIONS SECTION 108 REFUNDING SALES TAX

SPECIAL NOTE REVENUE BONDS REVENUE BONDSREVENUE TOTAL SERIES 2006 SERIES 2003 SERIES 2003

REVENUESTaxes -$ 63,706,793$ -$ -$ -$ Special assessments - 35,904,621 - - - Licenses and permits - 8,106,082 - - - Intergovernmental:

Federal 144,166 14,575,149 - - - State - 28,609,395 - - - Local - 101,237 - - -

Charges for services - 20,946,385 - - - Fines and forfeitures - 2,461,493 - - - Interest and other earnings 96 2,217,044 3,242 40 16 Miscellaneous - 6,019,456 - - -

Total revenues 144,262 182,647,655 3,242 40 16


General government (noncourt-related) 144,166 21,329,355 - - - Public safety - 57,545,780 - - - Physical environment - 1,403,525 - - - Transportation - 56,435,723 - - - Economic environment - 6,660,322 - - - Human services - 3,356,670 - - - Culture and recreation - 3,419,782 - - - Court-related - 14,278,777 - - - Miscellaneous - 6,687,900 - - -


Principal - - 588,000 - - Interest and debt service charges - - 493,976 - -

Total expenditures 144,166 171,117,834 1,081,976 - -

Excess (deficiency) of revenues over expenditures 96 11,529,821 (1,078,734) 40 16

OTHER FINANCING SOURCES (USES)Transfers in - 16,633,729 1,081,976 - - Transfers out - (5,943,009) - - (428,248) Note proceeds - - - - -

Total other financing sources (uses) - 10,690,720 1,081,976 - (428,248)

Net change in fund balances 96 22,220,541 3,242 40 (428,232)

Fund balances (deficit) at beginning of year 5,804 234,851,434 1,144,115 1,049,268 428,248

Fund balances (deficit) at end of year 5,900$ 257,071,975$ 1,147,357$ 1,049,308$ 16$


G-33

GUARANTEEDENTITLEMENT HALF CENT GUARANTEEDREFUNDING SALES TAX ENTITLEMENT PUBLIC SAFETY

REVENUE BONDS REVENUE BONDS LOAN NOTESERIES 2013 SERIES 2013 SERIES 2014 SERIES 2016 TOTAL

-$ -$ -$ -$ -$ - - - - - - - - - -

- - - - - 833,497 - 11,073,605 - 11,907,102

- - - - - - - - - - - - - - -

20,467 1,289 106,406 - 131,460 - - - - -

853,964 1,289 11,180,011 - 12,038,562

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

380,000 1,100,000 610,000 755,000 3,433,000 328,742 1,588,248 374,129 178,352 2,963,447 708,742 2,688,248 984,129 933,352 6,396,447

145,222 (2,686,959) 10,195,882 (933,352) 5,642,115

- 3,113,898 - 933,352 5,129,226 (5,216,119) - (15,088,304) - (20,732,671)

- - - - - (5,216,119) 3,113,898 (15,088,304) 933,352 (1,448,493)

(5,070,897) 426,939 (4,892,422) - (9,961,330)

5,509,596 - 5,557,272 - 13,688,499

438,699$ 426,939$ 664,850$ -$ 3,727,169$ (Continued)

DEBT SERVICE FUNDS




G-34

BOARD MOBILITY MOBILITY MOBILITY CAPITAL FEE FEE FEE

IMPROVE- DISTRICT 1 DISTRICT 2 DISTRICT 3MENTS WEST CENTRAL EAST

REVENUESTaxes -$ -$ -$ -$ Special assessments - - - 33,810 Licenses and permits - 4,985,656 4,240,267 6,682,914 Intergovernmental:

Federal - - - - State - - - - Local - - - -

Charges for services - - - - Fines and forfeitures - - - - Interest and other earnings 22,594 66,028 76,632 101,030 Miscellaneous - - - -

Total revenues 22,594 5,051,684 4,316,899 6,817,754


General government (noncourt-related) - - - - Public safety - - - - Physical environment - - - - Transportation - - - - Economic environment - - - - Human services - - - - Culture and recreation - - - - Court-related - - - - Miscellaneous - - - -

Capital outlay 2,148,410 1,252,480 822,101 274,043 Debt service:

Principal - - - - Interest and debt service charges - - - -

Total expenditures 2,148,410 1,252,480 822,101 274,043

Excess (deficiency) of revenues over expenditures (2,125,816) 3,799,204 3,494,798 6,543,711

OTHER FINANCING SOURCES (USES)Transfers in 1,350,000 - - - Transfers out - - - - Note proceeds - - - -

Total other financing sources (uses) 1,350,000 - - -

Net change in fund balances (775,816) 3,799,204 3,494,798 6,543,711

Fund balances (deficit) at beginning of year 6,540,691 9,349,586 16,218,476 13,674,272

Fund balances (deficit) at end of year 5,764,875$ 13,148,790$ 19,713,274$ 20,217,983$



G-35

TOTALVOPH TOMMY - GUARANTEED HALF-CENT NONMAJOR

TRANS- TOWN ENTITLEMENT SALES TAX CAPITAL GOVERNMENTALPORTATION CAPITAL CIP CONSTRUCTION PROJECTS TOTAL FUNDS

8,570$ -$ -$ -$ -$ 8,570$ 63,715,363$ - - - - - 33,810 35,938,431 - - - - - 15,908,837 24,014,919

- - - - - - 14,575,149 - - - - - - 40,516,497 - - - - - - 101,237 - - - - - - 20,946,385

4,179 - - - - 4,179 2,465,672 - 13,853 4 9,357 - 289,498 2,638,002 - - - - - - 6,019,456

12,749 13,853 4 9,357 - 16,244,894 210,931,111

- - - - - - 21,329,355 - - - - - - 57,545,780 - - - - - - 1,403,525 - - - - - - 56,435,723 - - - - - - 6,660,322 - - - - - - 3,356,670 - - - - - - 3,419,782 - - - - - - 14,278,777 - - - - - - 6,687,900 - 459,480 - 226,051 5,292,602 10,475,167 10,475,167

- - - - - - 3,433,000 - - - - - - 2,963,447 - 459,480 - 226,051 5,292,602 10,475,167 187,989,448

12,749 (445,627) 4 (216,694) (5,292,602) 5,769,727 22,941,663

225,302 - - - 175,870 1,751,172 23,514,127 - - - - - - (26,675,680) - - - - - - -

225,302 - - - 175,870 1,751,172 (3,161,553) -

238,051 (445,627) 4 (216,694) (5,116,732) 7,520,899 19,780,110 -

170,069 4,099,478 1,095 3,191,057 - 53,244,724 301,784,657

408,120$ 3,653,851$ 1,099$ 2,974,363$ (5,116,732)$ 60,765,623$ 321,564,767$


PASCO COUNTY, FLORIDA MUNICIPAL SERVICES FUND



G-36



REVENUES

Taxes 4,916,250$ 4,916,250$ 4,894,076$ (22,174)$ Licenses and permits 1,465,680 1,465,680 1,740,441 274,761 Intergovernmental:

State 190,000 190,000 194,127 4,127 Charges for services 4,124,377 4,124,377 4,277,626 153,249 Fines and forfeitures 655 655 1,278 623 Interest and other earnings 47,500 47,500 82,992 35,492 Miscellaneous 219,363 221,863 414,879 193,016

Total revenues 10,963,825 10,966,325 11,605,419 639,094

EXPENDITURES Current:

General government (noncourt-related) 7,661,994 7,622,994 6,295,693 1,327,301 Public safety 6,044,882 6,044,882 5,689,299 355,583 Physical environment 161,518 161,518 167,973 (6,455) Transportation 1,325,450 1,327,189 1,550,247 (223,058) Economic environment 149,281 149,281 144,023 5,258 Human services 2,328,863 2,331,363 2,251,538 79,825 Miscellaneous 3,239,255 3,239,255 3,219,424 19,831

Total expenditures 20,911,243 20,876,482 19,318,197 1,558,285

Excess (deficiency) of revenues over expenditures (9,947,418) (9,910,157) (7,712,778) 2,197,379


Transfers in 832,000 833,739 903,072 69,333 Transfers out (31,783) (70,783) (9,543) 61,240

Total other financing sources (uses) 800,217 762,956 893,529 130,573

Net change in fund balances (9,147,201) (9,147,201) (6,819,249) 2,327,952

Fund balances at beginning of year 9,147,201 9,147,201 6,881,658 (2,265,543)

Fund balances at end of year -$ -$ 62,409$ 62,409$


PASCO COUNTY, FLORIDA LOCAL OPTION GAS TAX FUND



G-37



REVENUES

Taxes 8,436,000$ 8,436,000$ 8,449,505$ 13,505$ Interest and other earnings 49,105 49,105 103,123 54,018 Miscellaneous 46,433 46,433 1,158,633 1,112,200

Total revenues 8,531,538 8,531,538 9,711,261 1,179,723


Transportation 22,634,838 26,187,458 4,186,690 22,000,768 Miscellaneous 33,310 33,310 33,310 -




Transfers out - (3,021,893) (3,021,893) - Total other financing sources (uses) - (3,021,893) (3,021,893) -





PASCO COUNTY, FLORIDA BUILDING INSPECTIONS AND PERMITTING FUND



G-38



REVENUES

Taxes 170,000$ 170,000$ 102,775$ (67,225)$ Licenses and permits 4,326,789 4,326,789 6,364,011 2,037,222 Charges for services 2,172,296 2,172,296 3,830,653 1,658,357 Fines and forfeitures 63,603 63,603 43,001 (20,602) Interest and other earnings 6,175 6,175 35,499 29,324 Miscellaneous 98,044 98,044 273,560 175,516

Total revenues 6,836,907 6,836,907 10,649,499 3,812,592


General government (noncourt-related) 1,690,137 1,779,958 1,622,186 157,772 Public safety 5,730,035 5,773,316 5,262,255 511,061 Miscellaneous 1,078,969 1,078,969 1,069,261 9,708

Total expenditures 8,499,141 8,632,243 7,953,702 678,541






PASCO COUNTY, FLORIDA WEST PASCO LAW LIBRARY FUND



G-39



REVENUES

Charges for services 64,220$ 64,220$ 71,796$ 7,576$ Interest and other earnings 48 48 124 76

Total revenues 64,268 64,268 71,920 7,652


Court-related 62,670 62,670 63,871 (1,201) Total expenditures 62,670 62,670 63,871 (1,201)

Excess (deficiency) of

revenues over expenditures 1,598 1,598 8,049 6,451

Net change in fund balances 1,598 1,598 8,049 6,451

Fund balances (deficit) at beginning of year (1,598) (1,598) 31,824 33,422



PASCO COUNTY, FLORIDA EAST PASCO LAW LIBRARY FUND



G-40



REVENUES

Charges for services 56,810$ 56,810$ 59,326$ 2,516$ Interest and other earnings 38 38 83 45

Total revenues 56,848 56,848 59,409 2,561


Court-related 73,757 73,757 38,338 35,419 Total expenditures 73,757 73,757 38,338 35,419


revenues over expenditures (16,909) (16,909) 21,071 37,980

Net change in fund balances (16,909) (16,909) 21,071 37,980

Fund balances at beginning of year 16,909 16,909 20,060 3,151



PASCO COUNTY, FLORIDA ROAD AND BRIDGE FUND



G-41



REVENUES

Taxes 12,801,250$ 12,801,250$ 13,944,626$ 1,143,376$ Special assessments - - 6,218 6,218 Intergovernmental:

State 5,742,750 5,742,750 5,845,692 102,942 Charges for services 561,794 561,794 802,330 240,536 Interest and other earnings 39,248 39,248 126,565 87,317 Miscellaneous 11,115 11,115 46,808 35,693

Total revenues 19,156,157 19,156,157 20,772,239 1,616,082


Transportation 25,456,623 29,059,594 14,624,134 14,435,460 Miscellaneous 969,296 969,296 969,296 -



OTHER FINANCING SOURCES

Transfers in - 4,821,893 4,821,893 - Transfers out (344,708) (344,708) (373,434) (28,726)

Total other financing sources (uses) (344,708) 4,477,185 4,448,459 (28,726)





PASCO COUNTY, FLORIDA LAW ENFORCEMENT FUND



G-42



REVENUES

Fines and forfeitures 190,000$ 190,000$ 89,050$ (100,950)$ Interest and other earnings 855 855 2,100 1,245

Total revenues 190,855 190,855 91,150 (99,705)


Public safety 200,000 200,000 91,480 108,520 Total expenditures 200,000 200,000 91,480 108,520


revenues over expenditures (9,145) (9,145) (330) 8,815

OTHER FINANCING SOURCES (USES) Transfers out - - (116,295) (116,295)

Total other financing sources (uses) - - (116,295) (116,295)

Net change in fund balances (9,145) (9,145) (116,625) (107,480)




PASCO COUNTY, FLORIDA TOURIST DEVELOPMENT TAX FUND



G-43



REVENUES

Taxes 874,000$ 874,000$ 1,078,399$ 204,399$ Charges for services - 50,000 50,000 - Interest and other earnings 19,000 19,000 38,998 19,998 Miscellaneous - - 2,344 2,344

Total revenues 893,000 943,000 1,169,741 226,741


Economic environment 778,996 930,433 706,089 224,344 Culture and recreation 8,500,000 8,501,402 22,694 8,478,708 Miscellaneous 39,481 29,132 29,132 -

Total expenditures 9,318,477 9,460,967 757,915 8,703,052

Excess (deficiency) of revenues over expenditures (8,425,477) (8,517,967) 411,826 8,929,793


Transfers out - (150,870) (150,870) - Total other financing sources (uses) - (150,870) (150,870) -

Net change in fund balances (8,425,477) (8,668,837) 260,956 8,929,793




PASCO COUNTY, FLORIDA SPECIAL ASSESSMENT FUND



G-44



REVENUES

Special assessments 1,995,000$ 1,995,000$ 1,476,839$ (518,161)$ Interest and other earnings 365,750 365,750 535,657 169,907 Miscellaneous - - 2,480 2,480

Total revenues 2,360,750 2,360,750 2,014,976 (345,774)


Transportation 11,903,579 15,403,579 3,605,247 11,798,332 Economic environment - - 35 (35) Miscellaneous 86,140 86,140 86,140 -




Transfers in 344,708 3,844,708 3,873,434 28,726 Total other financing sources (uses) 344,708 3,844,708 3,873,434 28,726





PASCO COUNTY, FLORIDA INTERGOVERNMENTAL RADIO COMMUNICATION FUND



G-45



REVENUES

Charges for services 270,750$ 270,750$ 249,728$ (21,022)$ Interest and other earnings 3,800 3,800 5,963 2,163

Total revenues 274,550 274,550 255,691 (18,859)


General government (noncourt-related) 265,784 265,784 242,249 23,535 Public safety 77,200 77,200 42,731 34,469 Miscellaneous 488 488 488 -

Total expenditures 343,472 343,472 285,468 58,004

Excess (deficiency) of revenues over expenditures (68,922) (68,922) (29,777) 39,145

Net change in fund balances (68,922) (68,922) (29,777) 39,145

Fund balances at beginning of year 68,922 68,922 1,955,197 1,886,275



PASCO COUNTY, FLORIDA QUAIL HOLLOW VILLAGE MSBU FUND



G-46



REVENUES

Special assessments 5,605$ 5,605$ 5,706$ 101$ Interest and other earnings 109 109 216 107

Total revenues 5,714 5,714 5,922 208


Transportation 28,640 28,640 6,381 22,259 Miscellaneous 831 831 831 -







PASCO COUNTY, FLORIDA MUNICIPAL FIRE SERVICE UNIT FUND



G-47



REVENUES

Taxes 34,110,187$ 34,110,187$ 35,178,016$ 1,067,829$ Licenses and permits 1,324 1,324 1,630 306 Intergovernmental:

State 48,000 48,000 40,168 (7,832) Charges for services - 266,000 86,810 (179,190) Interest and other earnings 10,450 10,450 442,681 432,231 Miscellaneous 2,622 2,622 1,025 (1,597)

Total revenues 34,172,583 34,438,583 35,750,330 1,311,747


Public safety 32,579,242 32,579,242 32,535,722 43,520 Miscellaneous 841,930 841,930 841,930 -


Excess (deficiency) of revenues over expenditures 751,411 1,017,411 2,372,678 1,355,267

Net change in fund balances 751,411 1,017,411 2,372,678 1,355,267

Fund balances (deficit) at beginning of year (751,411) (1,017,411) 7,092,470 8,109,881



PASCO COUNTY, FLORIDA DEPARTMENT OF HUD FUND



G-48



REVENUES

Special assessments 74,700$ 74,700$ 143,650$ 68,950$ Intergovernmental:

Federal 4,361,127 4,515,367 1,998,773 (2,516,594) Charges for services 25,000 25,000 38,827 13,827 Interest and other earnings 45,000 45,000 41,654 (3,346) Miscellaneous 35,300 35,300 25,911 (9,389)

Total revenues 4,541,127 4,695,367 2,248,815 (2,446,552)


Economic environment 3,312,833 3,467,073 1,331,745 2,135,328 Miscellaneous 146,317 146,317 145,312 1,005


Excess (deficiency) of revenues over expenditures 1,081,977 1,081,977 771,758 (310,219)


Transfers out (1,081,977) (1,081,977) (1,081,976) 1 Total other financing sources (uses) (1,081,977) (1,081,977) (1,081,976) 1

Net change in fund balances - - (310,218) (310,218)

Fund balances at beginning of year - - - -

Fund balances (deficit) at end of year -$ -$ (310,218)$ (310,218)$


PASCO COUNTY, FLORIDA HOME PROGRAM FUND



G-49



REVENUES

Intergovernmental: Federal 1,633,960$ 1,633,960$ 1,512,349$ (121,611)$ Interest and other earnings 10,000 10,000 15,280 5,280 Miscellaneous 380,000 380,000 1,496,977 1,116,977

Total revenues 2,023,960 2,023,960 3,024,606 1,000,646


Economic environment 2,012,460 2,012,460 1,077,664 934,796 Miscellaneous 11,500 11,500 5,749 5,751


Excess (deficiency) of revenues over expenditures - - 1,941,193 1,941,193

Net change in fund balances - - 1,941,193 1,941,193




PASCO COUNTY, FLORIDA GRANTS FUND



G-50



REVENUES

Intergovernmental:Federal -$ 641,750$ 135,095$ (506,655)$ State - 250,000 - (250,000)

Total revenues - 891,750 135,095 (756,655)


Physical environment - 830,500 637,901 192,599 Culture and recreation - 250,000 - 250,000

Total expenditures - 1,080,500 637,901 442,599

Excess (deficiency) of revenues over expenditures - (188,750) (502,806) (314,056)


Transfers in - 188,750 - (188,750) Total other financing sources (uses) - 188,750 - (188,750)

Net change in fund balances - - (502,806) (502,806)


Fund balances (deficit) at end of year -$ -$ (502,806)$ (502,806)$


PASCO COUNTY, FLORIDA LIBRARY COOPERATIVE GRANT FUND



G-51



REVENUES

Intergovernmental:State 7,824$ 168,253$ 168,253$ -$

Total revenues 7,824 168,253 168,253 -


Culture and recreation 7,824 168,253 168,253 - Total expenditures 7,824 168,253 168,253 -

Excess (deficiency) of revenues over expenditures - - - -

Net change in fund balances - - - -


Fund balances at end of year -$ -$ -$ -$


PASCO COUNTY, FLORIDA PUBLIC TRANSPORTATION FUND



G-52



REVENUES

Charges for services 950,570$ 950,570$ 772,754$ (177,816)$ Miscellaneous 150,000 150,000 137,318 (12,682)

Total revenues 1,100,570 1,100,570 910,072 (190,498)


Transportation 898,208 898,208 724,899 173,309 Miscellaneous 202,362 202,362 50,591 151,771


Excess (deficiency) of revenues over expenditures - - 134,582 134,582

Net change in fund balances - - 134,582 134,582

Fund balances (deficit) at beginning of year - - (66,848) (66,848)



PASCO COUNTY, FLORIDA DEPARTMENT OF CHILDREN AND FAMILIES FUND



G-53



REVENUES

Intergovernmental: State -$ 53,165$ 53,165$ -$ Interest and other earnings - - 1,296 1,296

Total revenues - 53,165 54,461 1,296


Public safety - 53,165 32,195 20,970 Total expenditures - 53,165 32,195 20,970



Fund balances (deficit) at beginning of year - - (209) (209)



PASCO COUNTY, FLORIDA AFFORDABLE HOUSING FUND



G-54



REVENUES

Charges for services 15,000$ 15,000$ 65,832$ 50,832$ Interest and other earnings - - 891 891

Total revenues 15,000 15,000 66,723 51,723


Economic environment 298,606 298,606 70,000 228,606 Total expenditures 298,606 298,606 70,000 228,606






PASCO COUNTY, FLORIDA WILLIAMSBURG WEST MSTU FUND



G-55



REVENUES

Special assessments 16,198$ 16,198$ 16,452$ 254$ Interest and other earnings 68 68 274 206

Total revenues 16,266 16,266 16,726 460


Physical environment 25,960 25,960 13,241 12,719 Miscellaneous 1,004 1,004 1,004 -


Excess (deficiency) of revenues over expenditures (10,698) (10,698) 2,481 13,179





PASCO COUNTY, FLORIDA 911 EMERGENCY SERVICES FUND



G-56



REVENUES

Intergovernmental:State 2,033,000$ 2,033,000$ 2,192,334$ 159,334$

Charges for services - - 3,511 3,511 Interest and other earnings 7,600 7,600 8,456 856

Total revenues 2,040,600 2,040,600 2,204,301 163,701


Public safety 1,473,949 1,605,606 1,329,482 276,124 Miscellaneous 13,522 13,522 13,522 -


Excess (deficiency) of revenues over expenditures 553,129 421,472 861,297 439,825


Transfers out (832,000) (832,000) (901,333) (69,333) Total other financing sources (uses) (832,000) (832,000) (901,333) (69,333)





PASCO COUNTY, FLORIDA FLORIDA BOATING AND IMPROVEMENT FUND



G-57



REVENUES

Intergovernmental:State 128,250$ 128,250$ 125,602$ (2,648)$

Interest and other earnings 2,375 2,375 5,450 3,075 Total revenues 130,625 130,625 131,052 427

EXPENDITURES

Current: Culture and recreation 1,401,313 1,526,478 587,317 939,161


Excess (deficiency) ofrevenues over expenditures (1,270,688) (1,395,853) (456,265) 939,588

Net change in fund balances (1,270,688) (1,395,853) (456,265) 939,588

Fund balances at beginning of year 1,270,688 1,395,853 1,584,428 188,575



PASCO COUNTY, FLORIDA U.S. 19 CONCURRENCY FUND



G-58

VARIANCE WITHFINAL BUDGET


REVENUES

Special assessments -$ -$ 1,814$ 1,814$ Interest and other earnings 1,900 1,900 3,584 1,684

Total revenues 1,900 1,900 5,398 3,498


Transportation 1,172,056 1,172,056 - 1,172,056 Total expenditures 1,172,056 1,172,056 - 1,172,056






BUDGETED AMOUNTS

PASCO COUNTY, FLORIDA TRANSPORTATION IMPACT FEE WEST FUND



G-59



REVENUES

Special assessments -$ -$ 18,460$ 18,460$ Interest and other earnings 55,592 55,592 38,516 (17,076)

Total revenues 55,592 55,592 56,976 1,384


Transportation 1,581,569 1,581,569 399,485 1,182,084 Total expenditures 1,581,569 1,581,569 399,485 1,182,084

Excess (deficiency) of revenues over expenditures (1,525,977) (1,525,977) (342,509) 1,183,468

Net change in fund balances (1,525,977) (1,525,977) (342,509) 1,183,468




PASCO COUNTY, FLORIDA TRANSPORTATION IMPACT FEE CENTRAL FUND



G-60



REVENUES

Special assessments -$ -$ 10,302$ 10,302$ Interest and other earnings 274,310 274,310 184,493 (89,817) Miscellaneous 16,955 16,955 - (16,955)

Total revenues 291,265 291,265 194,795 (96,470)








PASCO COUNTY, FLORIDA TRANSPORTATION IMPACT FEE EAST FUND



G-61



REVENUES

Interest and other earnings 52,487$ 52,487$ 26,518$ (25,969)$ Miscellaneous 750,000 750,000 143,585 (606,415)

Total revenues 802,487 802,487 170,103 (632,384)








PASCO COUNTY, FLORIDA SCHOOL IMPACT FEES FUND



G-62



REVENUES

Special assessments 9,700,000$ 9,700,000$ 11,496,150$ 1,796,150$ Total revenues 9,700,000 9,700,000 11,496,150 1,796,150

EXPENDITURES

Current: General government (noncourt-related) 9,700,000 9,700,000 11,487,132 (1,787,132)

Total expenditures 9,700,000 9,700,000 11,487,132 (1,787,132)



Fund balances (deficit) at beginning of year - - (4,305) (4,305)



PASCO COUNTY, FLORIDA COURT FACILITIES IMPROVEMENT 939.185 F.S. FUND



G-63



REVENUES

Charges for services 950,000$ 950,000$ 937,404$ (12,596)$ Interest and other earnings 13,300 13,300 36,868 23,568

Total revenues 963,300 963,300 974,272 10,972

EXPENDITURES Current: Court-related 250,000 373,402 47,979 325,423


Excess (deficiency) of revenues over expenditures 713,300 589,898 926,293 336,395


Fund balances (deficit) at beginning of year (713,300) (589,898) 9,664,706 10,254,604



PASCO COUNTY, FLORIDA ALCOHOL AND OTHER DRUG ABUSE FUND



G-64



REVENUES

Charges for services 16,198$ 16,198$ 16,825$ 627$ Interest and other earnings - - 39 39

Total revenues 16,198 16,198 16,864 666


Human services 13,637 13,637 13,637 - Total expenditures 13,637 13,637 13,637 -

Excess (deficiency) of revenues over expenditures 2,561 2,561 3,227 666

Net change in fund balances 2,561 2,561 3,227 666

Fund balances (deficit) at beginning of year (2,561) (2,561) (2,562) (1)

Fund balances at end of year -$ -$ 665$ 665$


PASCO COUNTY, FLORIDA TEEN COURT FUND



G-65



REVENUES

Charges for services 190,000$ 190,000$ 201,183$ 11,183$ Interest and other earnings 713 713 478 (235)

Total revenues 190,713 190,713 201,661 10,948


Court-related 206,465 207,995 156,581 51,414 Total expenditures 206,465 207,995 156,581 51,414






PASCO COUNTY, FLORIDA LACOOCHEE/TRILBY REDEVELOPMENT FUND



G-66



REVENUES

Interest and other earnings -$ -$ 100$ 100$ Total revenues - - 100 100

EXPENDITURES

Total expenditures - - - -

Excess (deficiency) of revenues over expenditures - - 100 100


Transfers in 5,556 5,556 5,492 (64) Total other financing sources (uses) 5,556 5,556 5,492 (64)

Net change in fund balances 5,556 5,556 5,592 36




PASCO COUNTY, FLORIDA COMBAT IMPACT FEE FUND



G-67



REVENUES

Special assessments 643,344$ 643,344$ 931,741$ 288,397$ Interest and other earnings 6,194 6,194 18,929 12,735

Total revenues 649,538 649,538 950,670 301,132


Public safety 3,128,634 3,131,990 3,356 3,128,634 Miscellaneous 1,200 1,200 - 1,200







PASCO COUNTY, FLORIDA PARK IMPACT FEE WEST FUND



G-68



REVENUES


Total revenues 450,367 450,367 783,167 332,800


Culture and recreation 4,887,925 8,932,302 2,478,631 6,453,671 Miscellaneous 1,500 1,500 - 1,500







PASCO COUNTY, FLORIDA PARK IMPACT FEE CENTRAL FUND



G-69



REVENUES

Special assessments 613,681$ 613,681$ 1,601,182$ 987,501$ Interest and other earnings 8,351 8,351 22,711 14,360

Total revenues 622,032 622,032 1,623,893 1,001,861


Culture and recreation 3,006,361 3,030,105 102,580 2,927,525 Miscellaneous 1,500 1,500 - 1,500




Transfers in - - 292,853 292,853 Total other financing sources (uses) - - 292,853 292,853





PASCO COUNTY, FLORIDA PARK IMPACT FEE EAST FUND



G-70



REVENUES

Special assessments 48,201$ 48,201$ 37,051$ (11,150)$ Interest and other earnings 5,637 5,637 2,185 (3,452)

Total revenues 53,838 53,838 39,236 (14,602)


Culture and recreation 540,767 549,767 5,794 543,973 Miscellaneous 1,500 1,500 - 1,500







PASCO COUNTY, FLORIDA RESCUE IMPACT FEE FUND



G-71



REVENUES


Total revenues 455,347 455,347 666,129 210,782


Public safety 5,446,536 5,448,214 291,775 5,156,439 Miscellaneous 1,200 1,200 - 1,200







PASCO COUNTY, FLORIDA LIBRARY IMPACT FEE FUND



G-72



REVENUES


Total revenues 223,197 223,197 397,174 173,977


Culture and recreation 2,413,307 2,413,307 42,513 2,370,794 Miscellaneous 550 550 - 550







PASCO COUNTY, FLORIDA HURRICANE MITIGATION FEE FUND



G-73



REVENUES

Special assessments 22,614$ 22,614$ 42,619$ 20,005$ Interest and other earnings 425 425 984 559

Total revenues 23,039 23,039 43,603 20,564

EXPENDITURES Total expenditures - - - -







PASCO COUNTY, FLORIDA STORMWATER MANAGEMENT FUND



G-74



REVENUES

Taxes -$ -$ 59,396$ 59,396$ Special assessments 13,902,160 13,902,160 14,423,855 521,695 Intergovernmental:

Local 300,000 300,000 101,237 (198,763) Charges for services 15,010 15,010 10,050 (4,960) Interest and other earnings 22,052 22,052 176,629 154,577 Miscellaneous 161,671 161,671 183,828 22,157

Total revenues 14,400,893 14,400,893 14,954,995 554,102


Physical environment 400,000 400,000 285,123 114,877 Transportation 17,551,866 21,714,080 15,918,074 5,796,006 Miscellaneous 221,801 221,801 221,801 -


Total capital outlay 18,173,667 22,335,881 16,424,998 5,910,883



Transfers out - (282,381) (93,631) 188,750 Total other financing sources (uses) - (282,381) (93,631) 188,750





PASCO COUNTY, FLORIDA FOX RIDGE MSBU FUND



G-75



REVENUES

Special assessments 247,106$ 247,106$ 251,454$ 4,348$ Interest and other earnings - - 3,796 3,796

Total revenues 247,106 247,106 255,250 8,144


Public safety 335,854 335,854 79,681 256,173 Total expenditures 335,854 335,854 79,681 256,173 Total capital outlay 335,854 335,854 79,681 256,173


revenues over expenditures (88,748) (88,748) 175,569 264,317





PASCO COUNTY, FLORIDA TREE FUND



G-76



REVENUES

Charges for services 14,250$ 14,250$ 32,577$ 18,327$ Interest and other earnings 2,392 2,392 4,037 1,645

Total revenues 16,642 16,642 36,614 19,972


Physical environment 275,000 275,000 188,535 86,465 Transportation 40,000 40,000 - 40,000 Economic environment 30,000 30,000 - 30,000







PASCO COUNTY, FLORIDA LIGHTING DISTRICTS FUND



G-77



REVENUES

Special assessments 3,693,610$ 3,693,610$ 3,658,671$ (34,939)$ Charges for services 7,182 7,182 680 (6,502) Interest and other earnings 15,455 15,455 54,759 39,304 Miscellaneous 34,300 34,300 - (34,300)

Total revenues 3,750,547 3,750,547 3,714,110 (36,437)


Transportation 3,683,665 3,681,926 3,237,309 444,617 Total expenditures 3,683,665 3,681,926 3,237,309 444,617



OTHER FINANCING SOURCES (USES) Transfers out (63,000) (64,739) (69,989) (5,250)

Total other financing sources (uses) (63,000) (64,739) (69,989) (5,250)





PASCO COUNTY, FLORIDA HUD SECTION 108 NOTE, SERIES 2006 FUND



G-78



REVENUES

Interest and other earnings 200$ 200$ 3,242$ 3,042$ Total revenues 200 200 3,242 3,042

EXPENDITURES

Debt service:Principal 588,000 588,000 588,000 - Interest and debt service charges 494,177 494,177 493,976 201

Total debt service expenditures 1,082,177 1,082,177 1,081,976 201

Excess (deficiency) of revenues over expenditures (1,081,977) (1,081,977) (1,078,734) 3,243


Transfers in 1,081,977 1,081,977 1,081,976 (1) Total other financing sources (uses) 1,081,977 1,081,977 1,081,976 (1)


Fund balances at beginning of year - - 1,144,115 1,144,115



PASCO COUNTY, FLORIDA GUARANTEED ENTITLEMENT REFUNDING REVENUE BONDS, SERIES 2013 FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGETED AND ACTUAL FOR THE YEAR ENDED SEPTEMBER 30, 2016

G-79



REVENUES

Intergovernmental: State 703,486$ 703,486$ 833,497$ 130,011$

Interest and other earnings 1,425 1,425 20,467 19,042 Total revenues 704,911 704,911 853,964 149,053

EXPENDITURES

Debt service:Principal 380,000 380,000 380,000 - Interest and debt service charges 323,344 331,044 328,742 2,302

Total debt service expenditures 703,344 711,044 708,742 2,302

Excess (deficiency) of revenues over expenditures 1,567 (6,133) 145,222 151,355


Transfers out - - (5,216,119) (5,216,119) Total other financing sources (uses) - - (5,216,119) (5,216,119)

Net change in fund balances 1,567 (6,133) (5,070,897) (5,064,764)

Fund balances (deficit) at beginning of year (1,567) 6,133 5,509,596 5,503,463



PASCO COUNTY, FLORIDA HALF-CENT SALES TAX REVENUE BONDS, SERIES 2013 FUND



G-80



REVENUES

Interest and other earnings 1,140$ 1,140$ 1,289$ 149$ Total revenues 1,140 1,140 1,289 149

EXPENDITURES

Debt service:Principal 1,100,000 1,100,000 1,100,000 - Interest and debt service charges 1,550,450 1,589,650 1,588,248 1,402

Total debt service expenditures 2,650,450 2,689,650 2,688,248 1,402

Excess (deficiency) of revenues over expenditures (2,649,310) (2,688,510) (2,686,959) 1,551


Transfers in 2,667,510 2,667,510 3,113,898 446,388 Total other financing sources (uses) 2,667,510 2,667,510 3,113,898 446,388

Net change in fund balances 18,200 (21,000) 426,939 447,939

Fund balances (deficit) at beginning of year (18,200) 21,000 - (21,000)



PASCO COUNTY, FLORIDA GUARANTEED ENTITLEMENT LOAN, SERIES 2014 FUND



G-81



REVENUES

Intergovernmental:State 9,007,041$ 9,007,041$ 11,073,605$ 2,066,564$

Interest and other earnings 1,140 1,140 106,406 105,266 Total revenues 9,008,181 9,008,181 11,180,011 2,171,830

EXPENDITURES

Debt service:Principal 610,000 610,000 610,000 - Interest and debt service charges 360,750 376,681 374,129 2,552

Total debt service expenditures 970,750 986,681 984,129 2,552

Excess (deficiency) of revenues over expenditures 8,037,431 8,021,500 10,195,882 2,174,382


Transfers out (8,026,140) (8,026,140) (15,088,304) (7,062,164) Total other financing sources (uses) (8,026,140) (8,026,140) (15,088,304) (7,062,164)

Net change in fund balances 11,291 (4,640) (4,892,422) (4,887,782)

Fund balances (deficit) at beginning of year (11,291) 4,640 5,557,272 5,552,632



PASCO COUNTY, FLORIDA PUBLIC SAFETY NOTE, SERIES 2016 FUND



G-82



REVENUES

Total revenues -$ -$ -$ -$

EXPENDITURESDebt service:

Principal 1,918,650 1,918,650 755,000 1,163,650 Interest and debt service charges - - 178,352 (178,352)

Total debt service expenditures 1,918,650 1,918,650 933,352 985,298

Excess (deficiency) of revenues over expenditures (1,918,650) (1,918,650) (933,352) 985,298


Transfers in 1,918,650 1,918,650 933,352 (985,298) Total other financing sources (uses) 1,918,650 1,918,650 933,352 (985,298)

Net change in fund balances - - - -


Fund balances at end of year -$ -$ -$ -$


PASCO COUNTY, FLORIDA BOARD CAPITAL IMPROVEMENTS FUND



G-83



REVENUES

Interest and other earnings 12,250$ 12,250$ 22,594$ 10,344$ Total revenues 12,250 12,250 22,594 10,344

EXPENDITURES

Capital outlay:General government (noncourt-related) 5,661,005 5,498,049 1,504,680 3,993,369 Public safety 50,000 224,000 88,700 135,300 Culture and recreation 464,000 505,896 497,430 8,466 Court-related - - 57,600 (57,600)




Transfers in 1,350,000 1,350,000 1,350,000 - Total other financing sources (uses) 1,350,000 1,350,000 1,350,000 -





PASCO COUNTY, FLORIDA MOBILITY FEE DISTRICT 1 WEST FUND



G-84



REVENUES

Licenses and permits 1,660,025$ 1,660,025$ 4,985,656$ 3,325,631$ Interest and other earnings 43,662 43,662 66,028 22,366

Total revenues 1,703,687 1,703,687 5,051,684 3,347,997

EXPENDITURES Capital outlay:

Transportation 5,395,576 5,395,576 1,252,480 4,143,096 Total expenditures 5,395,576 5,395,576 1,252,480 4,143,096


revenues over expenditures (3,691,889) (3,691,889) 3,799,204 7,491,093





PASCO COUNTY, FLORIDA MOBILITY FEE DISTRICT 2 CENTRAL FUND



G-85



REVENUES

Licenses and permits 2,537,712$ 2,537,712$ 4,240,267$ 1,702,555$ Interest and other earnings 76,272 76,272 76,632 360

Total revenues 2,613,984 2,613,984 4,316,899 1,702,915

EXPENDITURES Capital Outlay:

Transportation 1,640,900 1,640,900 822,101 818,799 Total expenditures 1,640,900 1,640,900 822,101 818,799

Excess (deficiency) of revenues over expenditures 973,084 973,084 3,494,798 2,521,714

Net change in fund balances 973,084 973,084 3,494,798 2,521,714




PASCO COUNTY, FLORIDA MOBILITY FEE DISTRICT 3 EAST FUND



G-86



REVENUES

Special assessments -$ -$ 33,810$ 33,810$ Licenses and permits 2,835,306 2,835,306 6,682,914 3,847,608 Interest and other earnings 53,916 53,916 101,030 47,114

Total revenues 2,889,222 2,889,222 6,817,754 3,928,532


Transportation 7,805,654 7,843,873 243,283 7,600,590 Culture and recreation - 40,000 30,760 9,240







PASCO COUNTY, FLORIDA VOPH TRANSPORTATION FUND



G-87



REVENUES

Taxes -$ -$ 8,570$ 8,570$ Fines and forfeitures - - 4,179 4,179 Interest and other earnings 807 807 - (807)

Total revenues 807 807 12,749 11,942

EXPENDITURES Total expenditures - - - -


revenues over expenditures 807 807 12,749 11,942

OTHER FINANCING SOURCES (USES) Transfers in 211,633 211,633 225,302 13,669

Total other financing sources (uses) 211,633 211,633 225,302 13,669


Fund balances at beginning of year (212,440) (212,440) 170,069 382,509



PASCO COUNTY, FLORIDA TOMMYTOWN CAPITAL FUND



G-88



REVENUES

Interest and other earnings -$ -$ 13,853$ 13,853$ Total revenues - - 13,853 13,853


Economic environment 1,100,000 1,100,000 459,480 640,520 Total expenditures 1,100,000 1,100,000 459,480 640,520


revenues over expenditures (1,100,000) (1,100,000) (445,627) 654,373

Net change in fund balances (1,100,000) (1,100,000) (445,627) 654,373




PASCO COUNTY, FLORIDA HALF-CENT SALES TAX CONSTRUCTION FUND



G-89



REVENUES

Interest and other earnings -$ -$ 9,357$ 9,357$ Total revenues - - 9,357 9,357

EXPENDITURES

Capital outlay:Human services 14,041 14,041 - 14,041 Culture and recreation 2,701,789 2,701,789 226,051 2,475,738







PASCO COUNTY, FLORIDA CAPITAL PROJECTS FUND



G-90



REVENUES

Total revenues -$ -$ -$ -$


General government (noncourt-related) - - 3,446,514 (3,446,514) Transportation - - 1,846,088 (1,846,088) Culture and recreation - 175,870 - 175,870

Total expenditures - 175,870 5,292,602 (5,116,732)

Excess (deficiency) of revenues over expenditures - (175,870) (5,292,602) (5,116,732)


Transfers in - 175,870 175,870 - Total other financing sources (uses) - 175,870 175,870 -

Net change in fund balances - - (5,116,732) (5,116,732)


Fund balances (deficit) at end of year -$ -$ (5,116,732)$ (5,116,732)$


INTERNAL SERVICE FUNDS EQUIPMENT SERVICE, COUNTY HEALTH INSURANCE, COUNTY SELF INSURANCE, CLERK & COMPTROLLER’S INSURANCE, AND SHERIFF’S HEALTH INSURANCE FUNDS; To account for respective services and commodities furnished by one operation to other operations of the County.

PASCO COUNTY, FLORIDA INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION SEPTEMBER 30, 2016

G-91

COUNTY COUNTY CLERK & SHERIFF'SEQUIPMENT SELF HEALTH COMPTROLLER'S HEALTH

SERVICE INSURANCE INSURANCE INSURANCE INSURANCE TOTALSASSETSCurrent assets: Cash and cash equivalents 13,214,080$ 15,721,100$ 7,949,674$ 5,319,752$ 5,272,686$ 47,477,292$ Investments 8,609,805 9,913,595 5,179,712 - - 23,703,112 Accounts receivable, net 27,814 2,624 - - 36,034 66,472 Due from other governments 6,454 - - - - 6,454 Inventories 207,538 - - - - 207,538 Other - - - 139,300 - 139,300 Total current assets 22,065,691 25,637,319 13,129,386 5,459,052 5,308,720 71,600,168

Capital assets: Land 1,889,479 - - - - 1,889,479 Buildings 2,368,321 - - - - 2,368,321 Improvements other than buildings 2,326,545 - - - - 2,326,545 Equipment 73,037,166 - - - - 73,037,166 Less accumulated depreciation (49,701,949) - - - - (49,701,949) Capital assets, net 29,919,562 - - - - 29,919,562

Total assets 51,985,253 25,637,319 13,129,386 5,459,052 5,308,720 101,519,730

DEFERRED OUTFLOWS OF RESOURCES Deferred amounts on pension 1,320,257 - - - - 1,320,257 Total deferred outflows of resources 1,320,257 - - - - 1,320,257

LIABILITIESCurrent liabilities: Vouchers payable 344,137 232,013 2,233,890 - 847,339 3,657,379 Accrued liabilities 69,007 (43,326) - - - 25,681 Claims payable - 3,331,305 161,653 270,622 877,000 4,640,580 Unearned revenue - - 40,449 - - 40,449 Compensated absences 11,267 3,102 - - - 14,369 Total current liabilities 424,411 3,523,094 2,435,992 270,622 1,724,339 8,378,458

Noncurrent liabilities: Claims payable - 7,999,664 388,187 - - 8,387,851 Advances from other funds - - - - 1,534,000 1,534,000 Compensated absences 129,572 35,675 - - - 165,247 Net pension liability 2,671,968 - - - - 2,671,968 Total noncurrent liabilities 2,801,540 8,035,339 388,187 - 1,534,000 12,759,066

Total liabilities 3,225,951 11,558,433 2,824,179 270,622 3,258,339 21,137,524

DEFERRED INFLOWS OF RESOURCES Deferred amounts on pension 90,414 - - - - 90,414 Total deferred inflows of resources 90,414 - - - - 90,414

NET POSITION Net investment in capital assets 29,919,562 - - - - 29,919,562 Unrestricted 20,069,583 14,078,886 10,305,207 5,188,430 2,050,381 51,692,487

Total net position 49,989,145$ 14,078,886$ 10,305,207$ 5,188,430$ 2,050,381$ 81,612,049$



COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2016

G-92


SERVICE INSURANCE INSURANCE INSURANCE INSURANCE TOTALS

OPERATING REVENUES Charges for services 16,786,735$ 7,859,402$ 20,963,785$ 3,474,814$ 11,648,451$ 60,733,187$

OPERATING EXPENSES Personal services 2,333,410 399,280 - - - 2,732,690 Contractual services 1,354,744 7,106,653 16,600,947 3,961,876 - 29,024,220 Health Insurance - - - - 8,795,526 8,795,526 Current charges/stop loss fees - - - - 1,961,435 1,961,435 Travel 3,642 - - - - 3,642 Materials and supplies 4,535,391 6,900 4,904 - - 4,547,195 Heat, light and power 42,732 - 2,300 - - 45,032 Equipment rental and maintenance 870,839 1,765 66,634 - - 939,238 Communications 8,286 - 1,655 - - 9,941 Administrative charge from General Fund 385,018 268,792 2,004,973 - - 2,658,783 Depreciation 6,146,985 - - - - 6,146,985 Miscellaneous 3,140 - 18,753 - - 21,893 Total operating expenses 15,684,187 7,783,390 18,700,166 3,961,876 10,756,961 56,886,580

Operating income (loss) 1,102,548 76,012 2,263,619 (487,062) 891,490 3,846,607

NONOPERATING REVENUES (EXPENSES) Interest and other earnings (21,852) 70,191 47,832 12,736 716 109,623 Miscellaneous 707,234 17,912 - - - 725,146 Total nonoperating revenues (expenses) 685,382 88,103 47,832 12,736 716 834,769

Income (loss) before contributions 1,787,930 164,115 2,311,451 (474,326) 892,206 4,681,376

Capital contributions 800,969 - - - - 800,969

Transfers in 25,000 1,200,000 - 564,003 501,663 2,290,666 Transfers out - - (1,200,000) - - (1,200,000)

Change in net position 2,613,899 1,364,115 1,111,451 89,677 1,393,869 6,573,011

Net position - beginning 47,375,246 12,714,771 9,193,756 5,098,753 656,512 75,039,038

Net position - ending 49,989,145$ 14,078,886$ 10,305,207$ 5,188,430$ 2,050,381$ 81,612,049$



COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2016

G-93



CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers -$ 606,569$ 297,152$ 438,529$ -$ 1,342,250$ Receipts from employees - - 1,364,323 573,401 - 1,937,724 Receipts from interfund services provided 16,778,516 7,270,745 19,278,847 2,462,884 9,377,157 55,168,149 Payments to suppliers for goods and services (5,340,615) (6,747,812) (16,686,498) (4,093,078) (9,032,624) (41,900,627) Payments for interfund services used (2,633,344) (268,792) (2,004,973) - - (4,907,109) Payments for personal services (2,106,617) (447,135) - - - (2,553,752) Net cash provided by (used in) operating activities 6,697,940 413,575 2,248,851 (618,264) 344,533 9,086,635

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in (out) 25,000 1,200,000 (1,200,000) 564,003 501,663 1,090,666 Net cash provided by (used in) noncapital financing activities 25,000 1,200,000 (1,200,000) 564,003 501,663 1,090,666

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of assets 707,234 - - - - 707,234 Acquisition of capital assets (11,707,947) - - - - (11,707,947) Net cash used for capital and related financing activities (11,000,713) - - - - (11,000,713)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investments/securities 2,892,611 652,248 128,460 - - 3,673,319 Investment income - 70,191 47,832 12,736 716 131,475 Net cash provided by investing activities 2,892,611 722,439 176,292 12,736 716 3,804,794

Net increase (decrease) in cash and cash equivalents (1,385,162) 2,336,014 1,225,143 (41,525) 846,912 2,981,382

Cash and cash equivalents at October 1, 2015 14,599,242 13,385,086 6,724,531 5,361,277 4,425,774 44,495,910

Cash and cash equivalents at September 30, 2016 13,214,080$ 15,721,100$ 7,949,674$ 5,319,752$ 5,272,686$ 47,477,292$


G-94



Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) 1,102,548$ 76,012$ 2,263,619$ (487,062)$ 891,490$ 3,846,607$

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 6,146,985 - - - - 6,146,985 Claim settlement - 17,912 - - - 17,912 Changes in assets and liabilities: (Increase) decrease in accounts receivable (8,219) - - - (36,034) (44,253) (Increase) decrease in due from other governments 2,943 - - - - 2,943 (Increase) decrease in due to/from other funds - - - - 512,446 512,446 (Increase) decrease in other assets - 481,000 - (800) - 480,200 Increase (decrease) in vouchers payable (773,110) (557,915) 741,128 - (1,009,369) (1,599,266) Increase (decrease) in accrued liabilities 9,568 (51,052) - - - (41,484) Increase (decrease) in claims payable - 444,421 (732,433) (130,402) (14,000) (432,414) Increase (decrease) in unearned revenue - - (23,463) - - (23,463) Increase (decrease) in net pension liability and related deferred items 236,416 - - - - 236,416 Increase (decrease) in compensated absences (19,191) 3,197 - - - (15,994) Total adjustments 5,595,392 337,563 (14,768) (131,202) (546,957) 5,240,028

Net cash provided by (used in) operating activities 6,697,940$ 413,575$ 2,248,851$ (618,264)$ 344,533$ 9,086,635$

Noncash capital activities: Contributed capital assets 800,969$ -$ -$ -$ -$ 800,969$ Total noncash capital activities 800,969$ -$ -$ -$ -$ 800,969$

FIDUCIARY FUNDS AGENCY FUNDS To account for assets held in an agency capacity for other governmental units and individuals by the Board of County Commissioners, Clerk of Circuit Court and County Comptroller, Tax Collector, and Sheriff.

PASCO COUNTY, FLORIDA AGENCY FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION SEPTEMBER 30, 2016

G-95

AGENCY FUNDS BOARD OFCOUNTYCOMMIS- CLERK & TAXSIONERS COMPTROLLER COLLECTOR SHERIFF TOTAL

ASSETS

Cash and cash equivalents 836,562$ 16,998,147$ 5,068,164$ 643,284$ 23,546,157$ Investments 545,073 - 1,001,516 - 1,546,589 Total assets 1,381,635$ 16,998,147$ 6,069,680$ 643,284$ 25,092,746$

LIABILITIES

Liabilities: Vouchers payable -$ -$ -$ 536$ 536$ Due to other governments - 6,359,541 5,131,273 - 11,490,814 Deposits 1,381,635 10,638,606 938,407 642,748 13,601,396 Total liabilities 1,381,635$ 16,998,147$ 6,069,680$ 643,284$ 25,092,746$


PASCO COUNTY, FLORIDA AGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED SEPTEMBER 30, 2016

G-96

BALANCE BALANCEOCTOBER 1, SEPTEMBER 30,

2015 ADDITIONS DELETIONS 2016BOARD OF COUNTY COMMISSIONERSAssets: Cash and cash equivalents 860,397 321,380$ 345,215$ 836,562$ Investments 479,155 65,918 - 545,073 Total Assets 1,339,552$ 387,298$ 345,215$ 1,381,635$

Liabilities: Deposits 1,339,552$ 656,182$ 614,099$ 1,381,635$

CLERK & COMPTROLLERAssets: Cash and cash equivalents 12,655,746$ 129,390,299$ 125,047,898$ 16,998,147$

Liabilities: Due to other governments 3,625,877$ 187,883,675$ 185,150,011$ 6,359,541$ Deposits 9,029,869 68,056,710 66,447,973 10,638,606 Total liabilities 12,655,746$ 255,940,385$ 251,597,984$ 16,998,147$

TAX COLLECTORAssets: Cash and cash equivalents 3,928,517$ 524,546,316$ 523,406,669$ 5,068,164$ Investments 2,000,923 127,307,709 128,307,116 1,001,516 Total Assets 5,929,440$ 651,854,025$ 651,713,785$ 6,069,680$

Liabilities: Due to other governments 4,701,312$ 356,716,036$ 356,286,075$ 5,131,273$ Deposits 1,228,128 19,468,188 19,757,909 938,407 Total liabilities 5,929,440$ 376,184,224$ 376,043,984$ 6,069,680$

SHERIFFAssets: Cash and cash equivalents 588,106$ 1,590,233$ 1,535,055$ 643,284$ Cash and cash equivalents 588,106$ 1,590,233$ 1,535,055$ 643,284$

Liabilities: Deposits 588,088$ 1,034,660$ 980,000$ 642,748$ Vouchers payable 18 74,094 73,576 536

588,106$ 1,108,754$ 1,053,576$ 643,284$

TOTAL - ALL AGENCY FUNDSAssets: Cash and cash equivalents 18,032,766$ 655,848,228$ 650,334,837$ 23,546,157$ Investments 2,480,078 127,373,627 128,307,116 1,546,589 Total Assets 20,512,844$ 783,221,855$ 778,641,953$ 25,092,746$

Liabilities: Vouchers payable 18$ 74,094$ 73,576$ 536$ Due to other governments 8,327,189 544,599,711 541,436,086 11,490,814 Deposits 12,185,637 89,215,740 87,799,981 13,601,396 Total liabilities 20,512,844$ 633,889,545$ 629,309,643$ 25,092,746$


STATISTICAL SECTION The Computation of Legal Debt Margin table is excluded from this section

as the Florida Constitution and Pasco County set no legal debt limits.

This part of Pasco County’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements and note disclosures says about the County’s overall health. Contents Page Financial Trends H-1 These schedules contain trend information to help the reader understand how the County’s financial performance and well-being have changed over time. Revenue Capacity H-6 These schedules contain information to help the reader assess the County’s most significant local revenue source, the property tax. Debt Capacity H-10 These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and its ability to issue additional debt in the future. Demographic and Economic Information H-16 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place. Operating Information H-19 These schedules contain service and infrastructure data to help the reader understand how the information in the County’s financial report relates to the services the County provides and the activities it performs.

PASCO COUNTY, FLORIDA NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)

(IN THOUSANDS)

(UNAUDITED)

H-1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Governmental activities: (Note 1) (Note 2)Net investment in capital assets 435,255$ 525,317$ 635,571$ 628,162$ 656,243$ 704,806$ 733,178$ 758,990$ 772,236$ 789,226$ Restricted 287,408 180,065 183,647 258,878 183,279 163,700 165,451 304,182 320,899 319,123 Unrestricted 175,199 307,379 287,115 202,111 275,773 289,423 299,143 166,461 36,348 42,367 Total governmental activities net position 897,862$ 1,012,761$ 1,106,333$ 1,089,151$ 1,115,295$ 1,157,929$ 1,197,772$ 1,229,633$ 1,129,483$ 1,150,716$

Business-type activities:Net investment in capital assets 359,798$ 433,848$ 416,362$ 447,067$ 451,324$ 452,675$ 435,701$ 434,666$ 474,895$ 492,337$ Restricted 78,961 75,161 99,310 110,989 111,889 105,309 114,383 154,947 156,238 165,304 Unrestricted 24,448 8,913 (11,048) (13,726) (10,214) 30,739 52,743 43,105 31,086 50,334 Total business-type activities net position 463,207$ 517,922$ 504,624$ 544,330$ 552,999$ 588,723$ 602,827$ 632,718$ 662,219$ 707,975$

Primary government:Net investment in capital assets 795,053$ 959,165$ 1,051,933$ 1,075,229$ 1,107,567$ 1,157,481$ 1,168,879$ 1,193,656$ 1,247,131$ 1,281,563$ Restricted 366,369 255,226 296,952 369,867 295,168 269,009 279,834 459,129 477,137 484,427 Unrestricted 199,647 316,292 262,072 188,385 265,559 320,162 351,886 209,566 67,434 92,701 Total primary government net position 1,361,069$ 1,530,683$ 1,610,957$ 1,633,481$ 1,668,294$ 1,746,652$ 1,800,599$ 1,862,351$ 1,791,702$ 1,858,691$

Note 1 - The County adopted GASB Statement No. 65 during fiscal year 2014. Prior year amounts have not been restated.Note 2 - The County adopted GASB Statements No. 68 and 71 during fiscal year 2015. Prior year amounts have not been restated.

PASCO COUNTY, FLORIDA CHANGES IN NET POSITION


(IN THOUSANDS)

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H-2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016ExpensesGovernmental activities:General government 88,258$ 88,666$ 64,985$ 78,208$ 71,687$ 67,812$ 67,833$ 86,693$ 87,185$ 109,190$ Public safety 152,172 161,257 174,785 158,504 152,617 149,111 153,005 168,136 159,264 202,889 Physical environment 2,676 5,713 3,894 1,809 2,066 722 1,222 859 563 18,641 Transportation 42,110 35,630 31,514 121,436 66,416 61,374 64,910 83,651 63,987 42,266 Economic environment 14,600 18,279 18,488 30,985 25,284 16,134 14,498 13,843 10,314 13,606 Human services 11,483 12,051 3,586 8,408 15,141 13,796 16,194 15,792 14,865 11,864 Culture and recreation 21,297 20,025 19,237 16,920 16,431 17,292 15,436 19,910 15,115 20,152 Court-related 24,148 25,914 22,469 21,672 20,492 21,301 21,067 21,123 19,777 21,025 Interest and debt service charges 7,336 6,962 4,892 4,626 4,383 4,112 3,736 4,974 2,930 2,885 Total governmental activities expenses 364,080$ 374,497$ 343,850$ 442,568$ 374,517$ 351,654$ 357,901$ 414,981$ 374,000$ 442,518$ Business-type activities:Water and sewer unit 75,063$ 84,093$ 119,764$ 92,664$ 95,309$ 100,879$ 112,087$ 106,507$ 110,296$ 116,512$ Solid waste and resource recovery 30,333 31,176 57,745 35,723 41,080 24,035 32,135 33,387 32,683 32,127 Total business-type activities expenses 105,396$ 115,269$ 177,509$ 128,387$ 136,389$ 124,914$ 144,222$ 139,894$ 142,979$ 148,639$ Total primary government expenses 469,476$ 489,766$ 521,359$ 570,955$ 510,906$ 476,568$ 502,123$ 554,875$ 516,979$ 591,157$

Program RevenuesCharges for services:General government 12,375$ 20,128$ 20,472$ 10,109$ 9,899$ 11,098$ 11,559$ 13,428$ 14,421$ 13,303$ Public safety 23,777 27,934 20,680 27,932 24,875 24,704 30,827 27,248 27,627 35,036 Physical environment 118 992 2,341 529 630 994 1,187 1,408 1,123 1,428 Transportation 10,313 10,064 8,375 6,904 8,553 24,335 24,363 36,290 27,689 37,197 Economic environment 41,998 3,524 4,091 6,206 2,164 - 23 91 - 182 Human services 1,064 938 614 677 724 725 690 427 654 798 Culture and recreation 1,066 1,188 1,258 1,166 1,289 4,910 5,042 5,161 5,210 12,794 Court-related 14,433 13,938 11,917 2,344 2,482 15,150 16,425 11,788 11,197 11,498 Operating grants and contributions 42,500 56,357 53,419 76,855 80,959 40,263 40,528 47,842 41,460 28,519 Capital grants and contributions 73,970 67,951 66,680 31,743 23,250 27,489 17,782 37,952 22,717 14,189 Total governmental activities prog. revenues 221,614$ 203,014$ 189,847$ 164,465$ 154,825$ 149,668$ 148,426$ 181,635$ 152,098$ 154,944$ Business-type activities:Charges for services:Water and sewer unit 75,966$ 82,250$ 80,924$ 86,197$ 86,403$ 91,643$ 95,682$ 98,719$ 104,230$ 110,032$ Solid waste and resource recovery 36,965 38,552 40,726 42,163 42,087 42,695 44,691 45,231 47,911 47,338 Operating grants and contributions 2,204 250 474 592 867 1,935 696 177 890 - Capital grants and contributions 38,856 42,178 39,064 32,009 12,631 19,421 14,163 23,632 26,346 32,995 Total business-type activities prog. revenues 153,991$ 163,230$ 161,188$ 160,961$ 141,988$ 155,694$ 155,232$ 167,759$ 179,377$ 190,365$ Total primary government prog. revenues 375,604$ 366,244$ 351,035$ 325,426$ 296,813$ 305,362$ 303,658$ 349,394$ 331,475$ 345,309$

Net (Expense) RevenueGovernmental activities (142,466)$ (171,483)$ (154,003)$ (278,103)$ (219,692)$ (201,986)$ (209,475)$ (233,346)$ (221,902)$ (287,574)$ Business-type activities 48,595 47,961 (16,321) 32,575 5,599 30,780 11,010 27,865 36,398 41,726 Total primary government net expense (93,871)$ (123,522)$ (170,324)$ (245,528)$ (214,093)$ (171,206)$ (198,465)$ (205,481)$ (185,504)$ (245,848)$

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PASCO COUNTY, FLORIDA CHANGES IN NET POSITION


(IN THOUSANDS)

(UNAUDITED)

H-3

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016General Revenues and Other Changes in Net PositionGovernmental activities:Taxes: Property taxes 175,580$ 182,972$ 163,458$ 168,384$ 154,299$ 151,064$ 154,280$ 167,809$ 174,916$ 193,198$ Sales taxes 15,199 13,467 12,005 12,597 13,921 15,188 16,629 17,757 25,347 26,165 Franchise taxes - 20 5 381 429 - - - - - Telecommunications taxes 5,177 5,683 6,510 5,950 5,662 5,502 5,427 5,383 5,136 4,894 Gas taxes 12,891 12,301 12,278 12,416 11,992 12,066 12,901 12,832 23,055 25,399 Tourist development tax 752 842 640 642 685 822 768 812 980 1,079 State shared revenues 33,655 32,172 29,743 29,804 30,876 32,989 34,702 36,651 36,632 42,381 Unrestricted grants and contributions 6,202 8,208 4,511 936 6,333 2,084 3,106 1,765 983 801 Interest earnings 27,111 9,980 370 5,698 2,691 3,794 1,997 1,264 2,617 4,716 Miscellaneous 20,436 20,794 18,112 24,170 19,004 21,167 19,776 21,160 18,732 10,241 Transfers (57) (57) (57) (57) (57) (57) (267) (229) (231) (68) Total governmental activities 296,946$ 286,382$ 247,575$ 260,921$ 245,835$ 244,619$ 249,319$ 265,204$ 288,167$ 308,806$ Business-type activities:Interest earnings 11,821$ 6,697$ 2,966$ 6,244$ 2,962$ 4,467$ 2,339$ 1,953$ 3,432$ 3,363$ Transfers 57 57 57 57 57 57 266 229 231 599 Miscellaneous - - - 830 52 421 489 1,077 2,324 68 Total business-type activities 11,878$ 6,754$ 3,023$ 7,131$ 3,071$ 4,945$ 3,094$ 3,259$ 5,987$ 4,030$ Total primary government 308,824$ 293,136$ 250,598$ 268,052$ 248,906$ 249,564$ 252,413$ 268,463$ 294,154$ 312,836$

Change in Net PositionGovernmental activities 154,480$ 114,899$ 93,572$ (17,182)$ 26,143$ 42,633$ 39,844$ 31,858$ 66,266$ 21,233$ Business-type activities 60,473 54,714 (13,298) 39,706 8,670 35,725 14,104 31,124 42,386 45,756 Total primary government 214,953$ 169,613$ 80,274$ 22,524$ 34,813$ 78,358$ 53,948$ 62,982$ 108,652$ 66,989$

Note 1 - The County adopted GASB Statement No. 65 during fiscal year 2014, prior year amounts have not been restated.Note 2 - The County adopted GASB Statements No. 68 and 71 during fiscal year 2015. Prior year amounts have not been restated.

(continued from the previous page)

PASCO COUNTY, FLORIDA FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(IN THOUSANDS)

(UNAUDITED)

H-4

2007 2008 2009 2010

General Fund:Reserved 8,221$ 6,232$ 2,990$ 2,094$ Unreserved 47,415 52,852 43,819 54,769 Total General Fund 55,636$ 59,084$ 46,809$ 56,863$

All other governmental funds:Reserved 37,118$ 48,281$ 37,247$ 52,529$ Unreserved, reported in:Special revenue funds 267,354 261,048 246,654 224,282 Capital projects funds 66,397 61,465 61,067 63,694 Total all other governmental funds 370,869$ 370,794$ 344,968$ 340,505$

2011 2012 2013 2014 2015 2016General Fund:Nonspendable 170$ 162$ 160$ 177$ 1,720$ 1,741$ Restricted 268 257 805 803 724 637 Committed 120 14 3,028 2,960 2,921 2,924 Assigned 2,171 2,121 2,218 4,946 6,617 5,868 Unassigned 51,451 56,385 63,132 61,508 48,449 61,063 Total General Fund 54,180$ 58,939$ 69,343$ 70,394$ 60,431$ 72,233$

Penny for Pasco Fund: (Note 3)Nonspendable -$ -$ -$ -$ -$ -$ Restricted - - - - - 88,260 Committed - - - - - - Assigned - - - - - - Unassigned - - - - - - Total Penny for Pasco Fund -$ -$ -$ -$ -$ 88,260$

All other governmental funds:Nonspendable 524$ 561$ 587$ 696$ 620$ 474$ Restricted 183,011 170,147 164,648 325,936 361,143 313,705 Committed 164,605 166,507 169,641 8,035 8,301 7,370 Assigned 101 93 89 703 3,350 8,340 Unassigned (deficit) (202) (60) (43) (145) (158) (8,324) Total all other governmental funds 348,039$ 337,248$ 334,922$ 335,225$ 373,256$ 321,565$

Note 2 - The County adopted GASB Statements No. 68 and 71 during fiscal year 2015. Prior year amounts have not been restated.Note 3 - The Penny for Pasco fund is a major fund in 2016; prior year amounts have not been restated.

Pre-GASB Statement No. 54 "Fund Balance Reporting and Governmental Fund Type Definitions"

Note 1 - GASB Statement No. 54 was implemented in fiscal year 2011.

PASCO COUNTY, FLORIDA NET CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)

(IN THOUSANDS)

(UNAUDITED)

H-5

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016RevenuesTaxes 209,620$ 215,850$ 195,449$ 200,227$ 187,032$ 185,133$ 190,413$ 205,145$ 224,470$ 247,591$ Special assessments 57,017 48,806 42,820 38,459 32,936 24,515 24,397 27,747 30,599 35,938 Licenses and permits 6,691 4,946 4,076 4,051 6,055 11,686 14,156 15,718 19,802 24,244 Intergovernmental 70,930 74,310 84,564 107,054 110,385 87,027 88,330 83,797 88,299 88,524 Charges for services 42,914 45,553 37,798 37,409 36,768 35,910 42,816 46,733 47,600 51,302 Fines and forfeitures 4,044 3,716 3,050 2,282 2,975 1,595 2,293 3,892 2,813 2,702 Interest 26,016 96 5,329 2,512 3,484 1,847 1,250 2,382 4,604 Miscellaneous 25,208 21,974 18,095 23,391 22,398 21,668 19,683 20,840 31,651 20,811 Total revenues 442,440$ 424,627$ 385,948$ 418,202$ 401,061$ 371,018$ 383,935$ 405,122$ 447,616$ 475,716$

ExpendituresGeneral government 79,872$ 73,763$ 69,847$ 62,315$ 61,074$ 59,845$ 62,919$ 69,113$ 76,530$ 83,670$ Public safety 148,132 156,968 152,334 150,997 148,998 145,307 150,159 159,702 170,571 183,561 Physical environment 1,162 1,232 1,018 1,332 3,760 1,833 1,402 874 1,032 1,777 Transportation 35,723 70,239 86,058 80,717 76,819 74,860 62,181 64,593 68,348 56,436 Economic environment 13,652 18,239 14,805 30,589 25,288 14,770 12,436 13,533 10,335 13,123 Human services 13,237 13,459 13,556 11,635 13,319 12,446 16,557 14,829 15,408 14,043 Culture and recreation 30,172 18,781 16,186 15,282 14,090 13,914 16,527 17,189 17,942 18,008 Court-related and miscellaneous 35,719 36,226 31,070 32,756 31,745 32,450 33,287 32,908 31,580 31,880 Capital outlay 20,516 21,041 28,170 16,797 10,926 11,436 9,830 25,465 20,229 32,370 Debt service:Principal 3,531 3,379 6,001 5,459 5,700 5,964 6,244 15,759 2,566 3,433 Interest and charges 7,319 7,370 4,946 4,674 4,435 4,168 4,048 4,885 2,867 2,963 Total expenditures 424,791$ 420,697$ 423,991$ 412,553$ 396,154$ 376,993$ 375,590$ 418,850$ 417,408$ 441,264$

Excess of revenues over (under) expenditures 17,649$ 3,930$ (38,043)$ 5,649$ 4,907$ (5,975)$ 8,345$ (13,728)$ 30,208$ 34,452$

Other Financing Sources (Uses)Transfers in 50,347 53,947 48,746 35,833 20,295 23,561 26,324 24,821 16,571 46,098 Notes issued - - - - - - - - - 15,080 Transfers out (50,404) (54,504) (48,803) (35,890) (20,352) (23,618) (26,591) (25,050) (18,710) (47,257) Issuance of debt - - - - - - 48,399 15,310 - - Payment to escrow agents - - - - - - (48,399) - - - Total other financing sources (uses) (57)$ (557)$ (57)$ (57)$ (57)$ (57)$ (267)$ 15,081$ (2,139)$ 13,921$

Net change in fund balances 17,592$ 3,373$ (38,100)$ 5,592$ 4,850$ (6,032)$ 8,078$ 1,353$ 28,069$ 48,373$

Debt service as a percentage of noncapital expenditures* 3.20% 3.20% 3.38% 3.25% 2.86% 3.09% 3.03% 5.25% 1.37% 1.68%

* Effective 2016: Noncapital expenditures are calculated by using the capitalized capital outlay represented within the Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities.

PASCO COUNTY, FLORIDA DIRECT AND OVERLAPPING PROPERTY TAX RATES (MILLAGE RATE*)

LAST TEN FISCAL YEARS

(UNAUDITED)

H-6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016DirectCountywide:Pasco County operating 5.9880 5.4333 5.4333 6.3668 6.3668 6.3668 6.8623 7.3441 7.3441 7.6076 Unincorporated fire districts 1.1000 0.9955 0.9955 1.1991 1.4267 1.5405 1.5405 1.7165 1.7165 1.8036

Overlapping Countywide:Pasco County School District 7.4090 7.2080 7.2080 7.3400 7.7670 7.6440 7.3410 7.1490 7.1490 7.1090 Southwest Florida Water Management District 0.4220 0.3866 0.3866 0.3866 3.7700 0.3928 0.3928 0.3658 0.3658 0.3488 Pasco County Mosquito Control District 0.1599 0.1448 0.1567 0.1883 0.1989 0.1920 0.1630 0.2400 0.2400 0.2336 Non-countywide:City and town:Dade City 7.8400 7.1040 7.1040 7.1000 7.1000 7.1000 7.1000 7.1549 7.1549 7.1540 New Port Richey 7.0000 6.7840 6.6274 8.1037 8.1037 8.3877 9.5799 9.5000 9.5000 9.2500 Port Richey 4.7000 3.9000 3.9000 5.2260 4.6250 5.0000 5.3202 5.4348 5.4348 5.7666 Saint Leo 1.5000 1.3780 13.7800 1.3000 1.3000 1.3000 1.1500 0.7500 0.7500 0.7500 San Antonio 2.4155 2.0735 2.1077 2.4086 2.7434 2.7434 2.9000 3.1350 3.1350 3.5000 Zephyrhills 6.4200 5.5708 5.5708 5.5708 5.9999 5.9999 6.1415 6.1415 6.1415 6.3500 Special districts 1.1550 1.0441 1.0340 0.9814 0.9093 - - - - -

* Millage Rate per $1,000 of assessed taxable property value.

Source: Pasco County Property Appraiser

PASCO COUNTY, FLORIDA ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS (IN THOUSANDS)

(UNAUDITED)

H-7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Estimated Actual Value (1)Real property 37,956,299$ 42,731,726$ 39,790,826$ 32,681,664$ 29,126,577$ 28,013,760$ 24,887,946$ 28,735,532$ 28,722,124$ 30,333,782$ Personal property 2,912,306 3,026,634 3,474,265 3,238,561 3,111,657 3,039,321 2,876,461 2,834,203 2,972,944 3,043,789

Net Exemptions (2)Real property 14,134,555 15,219,564 14,964,346 11,481,883 10,180,753 9,442,866 7,336,025 7,291,068 8,349,318 8,895,013 Personal property 843,243 847,859 1,324,268 1,324,084 1,342,488 1,322,493 1,203,332 1,209,055 1,928,658 1,977,458

Taxable Assessed ValueReal property 23,821,744 27,512,162 24,826,480 21,199,781 18,945,824 18,570,894 17,551,921 18,748,189 20,372,806 21,438,769 Personal property 2,069,063 2,178,775 2,149,997 1,914,477 1,769,169 1,716,828 1,673,129 1,497,656 1,044,286 1,066,331 Centrally-assessed property 3,186 3,678 12,816 13,209 12,438 13,620 14,013 15,296 16,680 16,961 Total taxable assessed value 25,893,993 29,694,615 26,989,293 23,127,467 20,727,431 20,301,342 19,239,063 20,261,141 21,433,772 22,522,061

Assessed Value as a Percentage of Estimated Actual Value (3) 63.36% 64.89% 62.38% 64.39% 64.29% 65.38% 69.29% 64.18% 67.62% 67.48%

Total Direct Tax Rate (4) 5.99 5.43 5.43 6.37 6.37 6.37 6.86 7.04 6.98 7.24

(1) Section 192.00(2), Florida Statutes, defines assessed value of property as “an annual determination of the just or fair market value of an item or property….” Consequently, estimated actual value, above, is assessed value before exemptions.(2) Chapter 196, Florida Statutes, grants various exemptions for qualifying economic development, governmental, historic, and institutional property; the latter including charitable, educational, literary, religious, and scientific property. Exemptions are also granted for residential property for the disabled, blind, widows and widowers as well as the homestead exemption ($25,000), additional homestead exemption (age 65 or older, $25,000), and homestead differential (just value minus a capped value). [Note: the classified use value of land classified as agricultural (Chapter 193, Florida Statutes) is netted against all real property exemptions in arriving at the net exemptions noted, above, for real property.](3) Centrally-assessed property has been added to the total estimated actual value of real and personal property when computing this percentage.(4) Total Tax Levy (refer to Property tax Levies and Collections) to Total Taxable Assessed Value (above). Tax rates are in dollars per $1,000 of taxable assessed value.


PASCO COUNTY, FLORIDA PRINCIPAL TAXPAYERS

CURRENT YEAR AND TEN YEARS AGO

(UNAUDITED)

H-8

Percentage of Percentage ofTaxable Total Taxable Taxable Total Taxable

Assessed Assessed Assessed AssessedTaxpayer Value Rank Value Value Rank Value

Duke Energy (1) 290,142,970$ 1 0.70% 451,510,860$ 1 1.97%

Withlacoochee River Electric Cooperative 185,484,679 3 0.45% 242,743,304 2 1.05%

HCA Health Services of Florida 115,099,325 5 0.28% 179,161,340 3 0.78%

Frontier Communicatons (2) 267,758,723 2 0.65% 115,400,141 4 0.50%C/O Duff & Phelps

Tampa Premium Outlets LLC (3) - - - 98,576,175 5 0.43%

Florida Gas Transmission Company - - - 87,235,815 6 0.38%

Wal-Mart Stores 83,048,152 7 0.20% 83,180,668 7 0.36%

Shady Hills Power Company 152,823,989 4 0.37% 81,802,471 8 0.35%

Goodforest LLC - - - 78,798,641 9 0.34%

Bright House Networks 95,946,811 6 0.23% 72,072,552 10 0.31%

Zephryhills Bottled Water, America, Inc. 74,101,681 8 0.18%

Gulf View Associates 50,525,630 9 0.12%

Target Corporatoin 47,223,174 10 0.11%

(1) Formerly known as Florida Power Corporation(2) Formerly known as Verizon Communications(3) Opened October 2015


20162007

PASCO COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS


(UNAUDITED)

H-9

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Total Tax Levy 155,045,174$ 161,339,729$ 146,665,245$ 147,262,098$ 132,033,454$ 129,270,424$ 132,024,326$ 142,552,886$ 149,619,895$ 163,097,584$

Tax CollectionsCurrent (1) 149,923,317 154,193,198 138,784,006 141,523,432 127,155,960 124,421,515 126,993,043 142,106,781 149,262,158 162,771,044 Percentage of total tax levy 96.70% 95.57% 94.63% 96.10% 96.31% 96.25% 96.19% 99.69% 99.76% 99.80%Delinquent 246,807 230,589 259,403 191,546 81,251 133,558 67,324 5,601 61,864 97,741 Total tax collections 150,170,124 154,423,787 139,043,409 141,714,978 127,237,211 124,555,073 127,060,367 142,162,781 149,324,022 162,868,785 Percentage of total tax levy 96.86% 95.71% 94.80% 96.23% 96.37% 96.35% 96.24% 99.73% 99.80% 99.86%

Delinquent TaxesOutstanding (2) 480,128 488,739 1,996,617 1,062,595 1,004,313 1,023,166 970,367 819,038 897,190 396,692 Percentage of total tax levy 0.31% 0.30% 1.36% 0.72% 0.76% 0.79% 0.73% 0.57% 0.60% 0.24%

(1) Net of allowable discounts. [Note: Property taxes become due and payable on November 1st of each year. A 4-percent discount is allowed if the taxes are paid in November with the discount declining by 1 percent each month thereafter. Accordingly, tax collections will never equal 100 percent of the tax levy. Taxes become delinquent on April 1st of each year and tax certificates for the full amount of any unpaid taxes and assessments must be sold not later than June 1st of each year.(2) As of September 30th of each year.

Source: Pasco County Tax Collector

PASCO COUNTY, FLORIDA OUTSTANDING DEBT BY TYPE (1)

LAST TEN FISCAL YEARS (IN THOUSANDS, EXCEPT FOR PER CAPITA AMOUNTS)

(UNAUDITED)

H-10

2007 2008 2009 2010 2011 2012 2013 2014 (3) 2015 2016Governmental activities:Revenue and refunding revenue bonds 93,651$ 90,815$ 85,640$ 80,610$ 75,360$ 69,870$ 59,000$ 59,080$ 57,070$ 54,980$ Notes payable 13,185 12,642 11,816 11,387 10,937 10,463 9,964 9,435 8,879 22,616 Total governmental activities debt 106,836$ 103,457$ 97,456$ 91,997$ 86,297$ 80,333$ 68,964$ 68,515$ 65,949$ 77,596$

Business-type activities:Water and Sewer Unit bonds 97,201$ 89,186$ 228,664$ 219,149$ 517,575$ 215,937$ 214,243$ 211,474$ 259,764$ 253,931$ Solid Waste Disposal and Resource Recovery System bonds 63,741 82,393 83,198 79,728 71,092 65,946 59,874 56,438 50,152 45,541 Total business-type activities debt 160,942$ 171,579$ 311,862$ 298,877$ 588,667$ 281,883$ 274,117$ 267,912$ 309,916$ 299,472$

Total primary government debt 267,778$ 275,036$ 409,318$ 390,874$ 674,964$ 362,216$ 343,081$ 336,427$ 375,865$ 377,068$

Percentage of personal income (2) 2.01% 2.16% 3.21% 2.87% 4.89% 2.56% 2.18% 2.15% 2.28% 2.09%

Debt per capita (2) 616$ 627$ 931$ 893$ 1,452$ 773$ 724$ 702$ 771$ 760$

(1) Details regarding the county's outstanding debt can be found in the notes to the financial statements.(2) Refer to Demographic and Economic Information for total personal income and population data.(3) The County adopted GASB Statement No. 65 during fiscal year 2014. Prior year amounts have not been restated.

PASCO COUNTY, FLORIDA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

AS OF SEPTEMBER 30, 2016

(UNAUDITED)

H-11

PercentageApplicable to

Pasco County Total Amount of Board of Total Direct

Governmental Unit Debt Outstanding County Commissioners Debt OutstandingDirect: Pasco County, Florida 77,596,000$ 100% 77,596,000$

Overlapping: Overlapping debt for governmental entities within Pasco County is not presented.

PASCO COUNTY, FLORIDA SCHEDULES OF GENERAL GOVERNMENT BOND COVERAGES


(UNAUDITED)

H-12

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenues 1,796,974$ 1,695,294$ -$ -$ -$ -$ -$ -$ -$ -$

Debt Service RequirementsPrincipal 215,000 45,000 - - - - - - - - Interest 8,108 1,024 - - - - - - - - Total debt service requirements 223,108 46,024 - - - - - - - -

Coverage 8.05 36.83 N/A N/A N/A N/A N/A N/A N/A N/A

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenues 27,741,805$ 25,888,748$ 21,161,969$ -$ -$ -$ -$ -$ -$ -$

Debt Service RequirementsPrincipal 325,000 345,000 360,000 - - - - - - - Interest 49,753 34,044 17,125 - - - - - - - Total debt service requirements 374,753 379,044 377,125 - - - - - - -

Coverage 74.03 68.30 56.11 N/A N/A N/A N/A N/A N/A N/A

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenues 10,678,348$ 10,193,672$ 10,177,942$ 10,298,219$ 9,948,726$ 10,015,349$ 10,705,803$ -$ -$ -$

Debt Service RequirementsPrincipal 921,136 871,414 3,195,000 3,365,000 3,540,000 3,725,000 3,920,000 - - - Interest 3,208,871 3,256,599 932,238 764,350 591,449 401,363 208,125 - - - Total debt service requirements 4,130,007 4,128,013 4,127,238 4,129,350 4,131,449 4,126,363 4,128,125 - - -

Coverage 2.59 2.47 2.47 2.49 2.41 2.43 N/A N/A N/A N/A

(continued on the next page)

Gas Tax Refunding Revenue Bonds

Public Improvement Refunding Revenue Bonds

Refunding Improvement Revenue Bonds

PASCO COUNTY, FLORIDA SCHEDULES OF GENERAL GOVERNMENT BOND COVERAGES


(UNAUDITED)

H-13

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenues 2,092,907$ 2,092,907$ 2,092,907$ 2,092,907$ 2,092,907$ 2,092,907$ 2,092,907$ 10,517,332$ 11,565,081$ 12,033,975$

Debt Service RequirementsPrincipal 645,000 655,000 670,000 685,000 705,000 730,000 755,000 14,125,000 935,000 990,000 Interest 1,302,022 1,281,173 1,275,202 1,256,251 1,239,272 1,210,953 1,188,485 2,859,565 727,679 702,871 Total debt service requirement 1,947,022 1,936,173 1,945,202 1,941,251 1,944,272 1,940,953 1,943,485 16,984,565 1,662,679 1,692,871

Coverage 1.07 1.08 1.08 1.08 1.08 1.08 1.08 0.62 6.96 7.11

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Gross Revenues 22,984,773$ 21,985,043$ 20,535,216$ 20,545,872$ 21,158,340$ 22,452,753$ 23,754,693$ 16,512,851$ 23,942,725$ 29,270,418$

Debt Service RequirementsPrincipal 905,000 920,000 950,000 980,000 1,005,000 1,035,000 1,070,000 1,105,000 1,075,000 1,100,000 Interest 2,090,611 2,080,918 2,040,712 2,011,612 1,983,540 1,949,225 1,922,080 1,476,340 1,617,588 1,588,248 Total debt service requirement 2,995,611 3,000,918 2,990,712 2,991,612 2,988,540 2,984,225 2,992,080 2,581,340 2,692,588 2,688,248

Coverage 7.67 7.33 6.87 6.87 7.08 7.52 7.94 6.40 8.89 10.89

Guaranteed Entitlement Refunding Revenue Bonds

Half-Cent Sales Tax Revenue Bonds

(continued from the previous page)

PASCO COUNTY, FLORIDA SCHEDULE OF WATER AND SEWER UNIT BOND COVERAGE


(UNAUDITED)

H-14

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Revenues Available for Debt ServiceGross revenues (1) 86,264,142$ 87,043,115$ 83,603,799$ 91,904,436$ 88,921,490$ 95,529,940$ 103,600,537$ 117,835,365$ 107,170,312$ 110,031,611$ Less expenses (2) (59,390,355) (64,157,353) (62,906,360) (60,972,218) (60,442,432) (63,581,818) (70,137,377) (69,065,219) (72,707,580) (76,603,076) Net revenues available for debt service 26,873,787 22,885,762 20,697,439 30,932,218 28,479,058 31,948,122 33,463,160 48,770,146 34,462,732 33,428,535

Debt Service RequirementsPrincipal 7,900,000 8,235,000 8,635,000 9,330,000 1,395,000 1,510,000 1,510,000 4,815,000 5,160,000 5,330,000 Interest 4,128,780 4,463,484 4,019,097 9,123,912 9,970,325 12,118,152 12,045,804 11,730,792 11,535,642 13,219,886 Total debt service requirements 12,028,780 12,698,484 12,654,097 18,453,912 11,365,325 13,628,152 13,555,804 16,545,792 16,695,642 18,549,886

Coverage 2.23 1.80 1.64 1.68 2.51 2.34 2.47 2.95 2.06 1.80

(1) Gross revenues include both operating and non-operating revenues; however, impact fees have been excluded from the calculation. Bond covenants permit the use of some impact fees in calculating rate covenant coverage levels. Refer to Note 9 for more information.(2) Expenses exclude depreciation of fixed assets and amortization of deferred charges that are reflected as expenses elsewhere in the financial statements.

PASCO COUNTY, FLORIDA SCHEDULE OF SOLID WASTE DISPOSAL AND RESOURCE RECOVERY SYSTEM BOND

COVERAGE LAST TEN FISCAL YEARS

(UNAUDITED)

H-15

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Revenues Available for Debt ServiceGross revenues (1) 48,585,881$ 46,640,192$ 61,814,504$ 73,665,153$ 68,757,968$ 67,023,467$ 66,064,547$ 45,636,724$ 48,403,165$ 47,338,103$ Less expenses (2) (20,182,633) (21,509,490) (26,518,237) (22,188,115) (21,880,163) (16,746,169) (26,043,223) (27,122,805) (26,778,140) (25,904,367) Net revenues available for debt servic 28,403,248 25,130,702 35,296,267 51,477,038 46,877,805 50,277,298 40,021,324 18,513,919 21,625,025 21,433,736

Debt Service RequirementsPrincipal 11,760,000 - - 4,295,000 4,600,000 5,810,000 4,125,000 4,325,000 4,505,000 4,685,000 Interest 4,524,050 4,009,515 4,033,320 3,519,083 3,475,524 2,724,219 2,842,250 2,502,250 2,277,000 1,695,843 Total debt service requirements 16,284,050 4,009,515 4,033,320 7,814,083 8,075,524 8,534,219 6,967,250 6,827,250 6,782,000 6,380,843

Coverage 1.74 6.27 8.75 6.59 5.80 5.89 5.74 2.71 3.19 3.36

(1) Gross revenues include operating revenues and assessments as well as the balances in the system reserve, renewal and replacement, and landfill closure accounts.(2) Expenses exclude depreciation of fixed assets that are reflected as expenses elsewhere in the financial statements.

PASCO COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC INFORMATION


(UNAUDITED)

H-16

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total County Population (1) 434,425 438,668 439,702 437,500 464,697 468,562 473,566 479,340 487,588 495,868 Median Age (1) 45.1 45.1 41.6 45.6 43.6 43.6 43.6 43.8 44.1 44.1

Public School Enrollment (2) 63,713 64,674 67,143 66,994 67,337 66,497 67,374 66,904 70,169 69,813 Four-Year Graduation Rate (2) 73.7% 79.5% 83.5% 87.2% 88.5% 76.6% 75.9% 79.4% 78.6% 78.6%

Civilian Labor Force (1) 193,657 198,664 194,135 190,679 191,175 193,142 194,523 195,847 212,112 216,923 Total County Civilian Employment (1) 183,849 182,020 170,236 166,872 169,518 175,690 180,516 182,252 199,310 205,758 Countywide Unemployment Rate (3) 4.6% 8.1% 12.5% 13.2% 11.7% 9.7% 7.8% 6.7% 6.0% 5.1%

Total Personal Income (in thousands of dollars) (4) 13,304,700$ 12,750,465$ 12,750,465$ 13,635,875$ 13,790,695$ 14,163,668$ 15,735,511$ 15,679,803$ 16,478,279$ 18,017,635$ Per Capita Personal Income (in dollars) 30,626$ 29,066$ 28,998$ 31,168$ 29,677$ 30,228$ 33,228$ 32,711$ 33,795$ 36,336$

(1) Source: Florida Research and Economic Database (2) Source: Florida Legislature, Office of Economic and Demographic Research(3) Source: Pasco County School District(4) Source: Bureau of Labor Statistics

PASCO COUNTY, FLORIDA PRINCIPAL EMPLOYERS

CURRENT AND TEN YEARS AGO

(UNAUDITED)

H-17

Percentage Percentage of Total County of Total County

Employer Employees Rank Employment Employees Rank Employment

Pasco County School District 9,002 1 5.01% 10,344 1 5.19%

Pasco County Government 2,245 2 1.25% 2,795 2 1.40%

HCA Healthcare (2) 1,000 6 0.56% 2,794 3 1.40%

State of Florida Government 1,281 3 0.71% 1,225 4 0.61%

Pasco County Sheriff 1,149 4 0.64% 1,219 5 0.61%

Saint Leo University 400 - 0.22% 1,056 6 0.53%

Walmart Supercenters 600 - 0.33% 1,012 7 0.51%

Morton Plant North Bay Hospital / Recovery Center 400 - 0.22% 985 8 0.49%

Florida Medical Clinic 350 - 0.19% 982 9 0.49%

Florida Hospital Wesley Chapel - - - 915 10 0.46%

Community Hospital 1,050 5 0.58%

Regional Medical Center Bayonet Point 976 7 0.54%

Saddlebrook Resort 720 8 0.40%

Florida Hosptial Zephyrhills 708 9 0.39%

Pasco-Hernando Community College 609 10 0.34%

(1) Source: Pasco Economic Development Council(2) Formerly reported separately as Regional Medical Center Bayonet Point and Medical Center of Trinity

2016(1)2007 (1)

PASCO COUNTY, FLORIDA EMPLOYMENT STATISTICS BY FUNCTION


(UNAUDITED)

H-18

2007 2008 2009 2010 2011 2012 2013* 2014 2015 2016General GovernmentBoard of County Commissioners 8 9 9 9 9 9 9 8 9 10 County Administration 5 5 5 16 16 22 5 5 33 36 Office of Management and Budget 10 11 10 10 10 8 10 9 8 8 County Attorney 21 20 20 21 21 20 21 20 19 20 Facilities Management 90 90 84 78 78 51 55 54 60 60 Information Technology 78 76 69 64 64 67 65 62 68 68 Central Administration 49 51 51 45 45 42 15 17 - - Fleet Services 40 40 38 38 38 38 40 39 38 40 Development Services 328 304 285 295 295 288 213 271 240 260 Internal Services - - - - - - 45 39 41 45 Public Services - - - - - - 34 26 35 37

Constitutional officers:Clerk of the Circuit Court 344 389 326 316 344 330 339 336 335 316 Property Appraiser 59 58 56 55 52 48 48 48 50 49 Supervisor of Elections 25 32 27 25 22 26 23 23 23 27 Tax Collector 151 158 152 150 140 158 173 202 206 204

Fire Rescue 406 431 410 410 422 427 499 549 469 479 Emergency Management 80 67 76 67 67 65 7 8 90 94 S.A.V.E. 1 2 1 1 1 1 1 - - -

Sheriff (constitutional officer) 1,193 1,208 1,150 1,126 1,126 1,318 1,319 1,336 1,189 1,219

Physical EnvironmentCooperative Extension 11 10 10 7 7 7 7 7 7 7

TransportationRoad and Bridge 125 131 126 102 102 105 170 100 96 102 Pasco County Public Transportation 73 77 73 69 69 68 71 69 74 80

Economic EnvironmentVeteran Services 6 6 4 5 5 5 6 5 6 6

Human ServicesAnimal Services - - - - - - 30 36 38 37 Community Services 57 57 47 48 48 46 27 22 16 16 Nutrition 41 41 35 23 23 21 15 24 22 21

Culture and RecreationLibraries 132 133 125 113 113 105 100 108 104 103 Parks and Recreation 148 141 136 115 115 116 115 110 117 122

Court-RelatedJudicial / Legal 15 14 16 16 16 16 17 13 17 10

UtilitiesWater and Sewer 163 183 188 177 177 203 393 365 279 277 Solid Waste and Resource Recovery 212 230 229 223 223 221 56 52 230 261

Total 3,687 3,871 3,974 3,758 3,624 3,648 3,928 3,963 3,919 4,014

* Pasco County's departments underwent a restructuring in fiscal year 2013 resulting in the addition of new departments to this table.

PASCO COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION / PROGRAM


(UNAUDITED)

H-19

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

General GovernmentNew construction permits* - - - - - - 1,745 1,842 2,278 3,117

Registered voters 263,886 289,424 294,431 297,993 297,993 310,322 296,938 303,881 307,437 332,000 Voting precincts* - - - - - - 111 111 111 112

Public SafetyNumber of Sheriff calls for service 228,559 252,664 275,807 238,221 228,738 227,351 216,054 246,968 254,393 256,314 Number of Sheriff reports taken (1) 135,488 135,999 64,623 62,612 61,942 58,531 53,741 46,495 46,622 48,828 Number of fire alarms answered 33,682 33,589 35,689 35,103 35,222 56,875 58,755 60,546 61,704 65,285 Medical calls for service* - - - - - - 41,499 45,746 50,286 52,395 Non-medical calls for service* - - - - - - 17,256 14,800 11,418 12,890

TransportationPassenger trips 906,000 1,052,630 926,076 779,606 919,183 1,115,862 1,003,572 959,855 868,242 855,872

Human Services Number of Elderly Nutrition meals served 273,000 276,905 223,000 224,758 205,347 211,866 194,979 188,787 206,060 192,548 Number of Citizens Served * - - - - - - 1,741 1,708 1,827 1,619

Culture and RecreationNumber of volumes (2) 543,268 533,000 552,305 539,801 495,475 539,691 558,411 564,545 556,236 553,898 Number of items circulated 2,100,000 2,017,391 2,262,919 2,439,731 2,308,011 2,300,842 2,336,204 2,594,073 2,722,363 2,338,521

Water SystemDaily average consumption (millions of gallons) 33 29 25 24 24 24 23 23 24 26 Daily plant capacity (millions of gallons) 62 62 62 62 62 82 82 80 87 79 Water customers 92,134 91,572 97,000 83,224 91,687 92,756 95,758 98,631 99,218 104,232

Sewer (wastewater) SystemDaily average treatment (millions of gallons) 20 19 18 17 18 15 19 19 22 23 Daily maximum treatment capacity plants (millions of gallons) 27 26 26 38 38 38 35 35 33 33 Sewer customers 76,832 77,598 77,872 67,593 78,708 80,288 82,235 84,702 86,566 92,402

Reclaimed Water SystemDaily average consumption (millions of gallons) 19 20 20 20 21 14 21 21 21 20 Storage capacity (millions of gallons)* - - - - - - 245 39 130 713 Reclaimed water customers* - - - - - - 12,386 13,264 13,851 14,437

(1) In 2007 and 2008, the total includes initial and supplemental reports.(2) Includes print, electronic, audio, and video materials.(3) Boyette Reservoir opened in fiscal year 2016

* These fields were added to the table in fiscal year 2013.

PASCO COUNTY, FLORIDA CAPITAL ASSETS AND INFRASTRUCTURE STATISTICS BY FUNCTION / PROGRAM


(UNAUDITED)

H-20

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Public SafetySheriff district offices 3 3 3 3 3 5 3 3 3 3 Sheriff substations (1) - - - - - - 4 5 6 5 Fire stations 26 26 26 25 27 28 23 23 23 23

TransportationBus routes (1) - - - - - - 10 10 10 9 Bus stops (1) - - - - - - 847 847 864 872

Culture and RecreationNumber of libraries (1) - - - - - - 7 7 7 7Number of parks 38 38 38 38 37 35 35 35 35 35 Acreage 10,372 10,425 10,425 10,410 10,541 10,524 10,580 10,617 10,622 10,622 Baseball / softball fields (1) - - - - - - 59 59 117 117 Playgrounds 30 30 29 30 34 32 32 33 33 33 Racquetball / tennis courts 17 22 22 22 21 21 24 25 25 25 Basketball / Volleyball Courts (2) - - - - - - - - - 63 Swimming pools 4 4 4 4 2 2 2 2 2 2

Deep wells 58 58 58 58 58 58 58 57 57 43 Miles of water mains (greater than 4" diameter) 1,608 2,906 3,210 1,504 1,523 1,636 1,636 1,152 1,250 1,306 Number of service connections 92,134 91,572 97,000 95,338 97,887 98,795 100,003 102,003 103,867 107,341

Sewer (wastewater) SystemNumber of pump stations 579 553 573 574 569 567 575 582 581 595 Miles of sanitary sewers (greater than 4" diameter) 1,365 863 1,342 1,079 1,090 1,105 1,269 1,266 1,405 1,347 Number of service connections 76,832 77,598 77,872 67,593 78,708 80,288 91,153 92,976 94,840 94,207

Reclaimed Water SystemNumber of storage pumping sites 24 25 25 25 25 25 9 9 10 10 Miles of reclaimed water mains 576 646 648 314 314 360 332 361 365 353 Number of service connections 10,898 11,315 11,452 12,054 11,724 12,040 12,386 13,264 13,851 14,591

(1) These fields were added to the table in fiscal year 2013.(2) This field was added to the table in fiscal year 2016.

PASCO COUNTY, FLORIDA SOLID WASTE DISPOSAL

AND RESOURCE RECOVERY SYSTEM

SCHEDULES OF RECEIPTS, DISBURSEMENTS, AND BALANCES ALL FUNDS AND ACCOUNTS

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

In compliance with Section 714(3) of

The Indenture of Trust between Pasco County, Florida

and First Union National Bank of Florida (“U.S. Bank”), as Trustee

(BOND COMPLIANCE DISCLOSURE)

PASCO COUNTY, FLORIDA SOLID WASTE DISPOSAL AND RESOURCE RECOVERY SYSTEM

REVENUE BONDS, SERIES 2008D & SERIES 2011 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

(UNAUDITED)

I-1

2008D, RENEWAL AND2011 & 2015 REPLACEMENT

REVENUE FUND RESERVE FUND FUND

Balance, October 1, 2015 9,361,256$ 43,344,141$ 2,001,562$

Receipts: System revenues 42,270,547 - - Transfer in 27,791,491 86,808,387 2,505 Total available 79,423,294 130,152,528 2,004,067

Disbursements: Payments to county's operating account 25,480,313 - - Transfers out 45,110,030 67,174,627 - Total disbursements 70,590,343 67,174,627 -

Balance, September 30, 2016 8,832,951$ 62,977,901$ 2,004,067$

Balance is comprised of the following:

Cash and cash equivalents -$ 62,977,901$ 2,004,067$ Temporary investments 8,832,951 - -

Balance, September 30, 2016 8,832,951$ 62,977,901$ 2,004,067$


PASCO COUNTY, FLORIDA SOLID WASTE DISPOSAL AND RESOURCE RECOVERY SYSTEM

REVENUE BONDS, SERIES 2008D & SERIES 2011 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

(UNAUDITED)

I-2

DEBT SERVICE FUND2008D, 2008D, 2008D,

2011 & 2015 2011 & 2015 2011 & 2015DEBT SERVICE INTEREST PRINCIPAL

RESERVE ACCOUNT ACCOUNT ACCOUNT

Balance, October 1, 2015 3,827,494$ 162,856$ -$

Receipts: Transfer in 4,790 499,639 - Total available 3,832,284 662,495 -

Disbursements: Debt service - - - Transfers out - 450,653 - Total disbursements - 450,653 -

Balance, September 30, 2016 3,832,284$ 211,842$ -$

Balance is comprised of the following:

Cash and cash equivalents 3,832,284$ 211,842$ -$ Balance, September 30, 2016 3,832,284$ 211,842$ -$


PASCO COUNTY, FLORIDA

Schedules of Expenditures of Federal Awards and State Financial Assistance and Reports as Required by the

Uniform Guidance and Chapter 10.550, Rules of the Auditor General

September 30, 2016

(With Independent Auditors’ Report Thereon)


Table of Contents

Page

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 1

Independent Auditors’ Report on Compliance for Each Major Federal Program and Major State Project; Report on Internal Control over Compliance; and Report on Schedules of Expenditures of Federal Awards and State Financial Assistance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General 3

Schedule of Expenditures of Federal Awards 6

Schedule of Expenditures of State Financial Assistance 8

Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance 10

Schedule of Findings and Questioned Costs 11



Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in

Accordance With Government Auditing Standards

Distinguished Members of the Board of County Commissioners:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Pasco County, Florida (the County) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated August 7, 2017.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weakness and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as Finding 2016-001 to be a material weakness.

A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as Finding 2016-002 to be a significant deficiency.

2

Compliance and Other Matters As part of obtaining reasonable assurance about whether the County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

County’s Response to Finding The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs as Findings 2016-001 and 2016-002. The County’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.




3

Independent Auditors’ Report on Compliance for Each Major Federal Program and Major State Project; Report on Internal Control over Compliance; and Report on

Schedules of Expenditures of Federal Awards and State Financial Assistance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General

Distinguished Members of the Board of County Commissioners:

Report on Compliance for Each Major Federal Program and Major State Project We have audited Pasco County, Florida’s (the County) compliance with the types of compliance requirements described in the OMB Compliance Supplement and the requirements described in the Florida Department of Financial Services’ State Projects Compliance Supplement that could have a direct and material effect on each of the County’s major federal programs and major state projects for the year ended September 30, 2016. The County’s major federal programs and major state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.

Management’s Responsibility

Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal and state awards applicable to its federal programs and state projects.


Our responsibility is to express an opinion on compliance for each of the County’s major federal programs and major state projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and Chapter 10.550, Rules of the Auditor General (Chapter 10.550). Those standards, the Uniform Guidance, and Chapter 10.550 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or major state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and major state project. However, our audit does not provide a legal determination of the County’s compliance.

Opinion on Each Major Federal Program and Major State Project

In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and major state projects for the year ended September 30, 2016.

4

Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program and major state project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and major state project and to test and report on internal control over compliance in accordance with the Uniform Guidance and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or state project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified one deficiency in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as item 2016-003 that we consider to be a significant deficiency in internal control over compliance over state programs.

The County’s response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The County’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance and Chapter 10.550. Accordingly, this report is not suitable for any other purpose.

5

Report on Schedules of Expenditures of Federal Awards and State Financial Assistance Required by the Uniform Guidance and Chapter 10.550 We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the County as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements. We have issued our report thereon dated August 7, 2017, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedules of expenditures of federal awards and state financial assistance are presented for purposes of additional analysis as required by the Uniform Guidance and Chapter 10.550 and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules of expenditures of federal awards and state financial assistance are fairly stated in all material respects in relation to the basic financial statements as a whole.

September 27, 2017 Certified Public Accountants


Schedule of Expenditures of Federal Awards

Fiscal year ended September 30, 2016

CFDA Grantor/Contract Program Amounts PassedGrantor agency and program title number number expenditures through to subrecipients

U.S. Department of Agriculture:Emergency Watershed Protection Program:

USDA NRCS Anclote River Watershed EWP 10.923 68-4209-16-200 $ 389,258 $

Total U.S. Department of Agriculture 389,258 —

U.S. Department of Housing and Urban Development:Community Development Block Grants / Entitlement Grants Cluster:

Community Development Block Grant / Entitlement Grant 14.218 Program Income 336,307 Community Development Block Grant / Entitlement Grant 14.218 B15-UC-120009 2,052,675 Community Development Block Grant / Entitlement Grant 14.218 Outstanding loans 9,608,359 Neighborhood Stabilization Program NSP 1 14.218 Program Income 225,053 Neighborhood Stabilization Program NSP 3 14.218 B11-UN-12-0014 11,656 Neighborhood Stabilization Program NSP 3 14.218 Program Income 376,784

Total Community Development Block Grant / Entitlement Grants Cluster 12,610,834 454,367

Emergency Solutions Grant Program:Emergency Solutions Program 14.231 E15-UC12-0009 146,525 Emergency Solutions Program 14.231 E14-UC-12-0017 23,551

Total Emergency Solutions Grant Program 170,076 93,834

Home Investment Partnerships Program:Home Investment Partnership Program 14.239 M10-DC-12-0216 118,240 Home Investment Partnership Program 14.239 M11-DC-12-0216 37,981 Home Investment Partnership Program 14.239 M12-DC-12-0216 626,435 Home Investment Partnership Program 14.239 M13-DC-12-0216 177,056 Home Investment Partnership Program 14.239 M15-DC-12-0216 102,869 Home Investment Partnership Program 14.239 M14-DC-12-0216 25,771 Home Investment Partnership Program 14.239 Program Income 10,074 Home Investment Partnership Program 14.239 Outstanding loans 12,533,279

Total Home Investment Partnerships Program 13,631,705 —

Neighborhood Stabilization Program (Recovery Act Funded):Passed through Neighborhood Lending Association:

ARRA – Neighborhood Stabilization Program NSP 2 14.256 B09-CN-FL-0023 989,945 ARRA – Neighborhood Stabilization Program NSP 2 14.256 Program Income 444,692 ARRA – Neighborhood Stabilization Program NSP 2 14.256 Outstanding loans 10,285,005

Total ARRA – Neighborhood Stabilization Program NSP 2 11,719,642 69,861

Public Housing Capital Fund:Passed through Florida Office of Attorney General:

HUD Capital Fund Drug Elimination 14.872 None 30,000 —

Total U.S. Department of Housing and Urban Development 38,162,257

U.S. Department of Justice:Missing Alzheimer’s Disease Patient Assistant Program:

Endangered Adult 16.015 2015-SJ-BX-0001 15,914 — National Institute of Justice Research, Evaluation, and Development Project Grants:

Solving Cold Cases with DNA 16.560 2014-DN-BX-K466 39,471 — Crime Victim Assistance:

Passed through Office of Attorney General:Victims of Crime Act 16.575 V125-14003 41,868 —

Violence Against Women Formula Grants:STOP Enhanced Law Enforcement Response Grant 16.588 16-8009-LE-EHN 84,115 STOP Invest Grant 16.588 17-8009-LE-INV 2,825

Total Violence Against Women Formula Grants 86,940 —

Edward Byrne Memorial Justice Assistance Grant Program:Federal Justice Assistance Grant (JAG) V&G Gang Suppression (6) 16.738 2014-DJ-BX-0495 317 Multi-Jurisdictional Task Force – SNAP 16.738 2016-JAGC-PASC-1-H3-085 112,761 Federal Justice Assistance Grant (JAG) Gang Suppression (7) 16.738 2015-DJ-BX-0482 65,040

Total Edward Byrne Memorial Justice Assistance Grant Program 178,118 —

Equitable Sharing Program:Federal Equitable Sharing 16.922 None 114,863 —

Total U.S. Department of Justice 477,174

U.S. Department of Transportation:Highway Planning and Construction Cluster:

Passed through Florida Department of Transportation:Sec1107PLFAPN 1157052 20.205 A5208 15-16; FPN: 259342-1-14-16 493,381 LAP Lake Iola (Blanton-Her. Co. Line) 20.205 ARC04 FPN: 433438 1 58/68 01 273,773 Trouble Creek Sidewalk 20.205 ARQ49 FPN: 43035915801 & 43035916801 230,953 Moon Road Sidewalk 20.205 FPN 433698-1-58/68-01 492,139 MPO FY 16-17 5305(D) 20.205 A5208 FY 16-17 117,766 CR77/Rowan Sidewalk Project 20.205 ARQ50 FPN 43035815801 & 43035816801 316,500 Mile Stretch Drive Sidewalk 20.205 FPN 4339715801 & 43369716801 99,163 HVE Pedestrian Safety Grant 20.205 #BDV25 / 945-002 18,483

Total Highway Planning and Construction Cluster 2,042,158 —

Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research:Passed through Florida Department of Transportation:

MPO Section 5305(d) 20.505 ARA88 2013-14 Federal 53,562 MPO Section 5305(d) 20.505 ARM21 2014-15 Federal 22,783

Total Metropolitan Transportation Planning and State Non- Metropolitan Planning and Research 76,345 —

Federal Transit Cluster:Urban Mass Transportation Capital and Operating Assistance Formula Grant – Capital 20.507 FL90X-814 557,341 Urban Mass Transportation Capital and Operating Assistance Formula Grant – Capital 20.507 FL90X-847 1,345,519 Urban Mass Transportation Capital and Operating Assistance Formula Grant 20.507 FL90X-654 30,956 Urban Mass Transportation Capital and Operating Assistance Formula Grant – Operating 20.507 FL90X-847 134,723 Urban Mass Transportation Capital and Operating Assistance Formula Grant 20.507 FL90X-695 81,706 Urban Mass Transportation Capital and Operating Assistance Formula Grant 20.507 FL90X-732 156,131 Urban Mass Transportation Capital and Operating Assistance Formula Grant 20.507 FL90X-753 66,856 Urban Mass Transportation Capital and Operating Assistance Formula Grant – Capital 20.507 FL90X-780 71,510 FTA Capital 20.526 FL-34-0022 261,099

Total Federal Transit Cluster 2,705,841 —

Formula Grants for Rural Areas:Passed through Florida Department of Transportation:

Capital McKendree Project 20.509 APV-21 4,375 Rural 5311 FY13 Ops 20.509 APV20 48,220 Rural 5311 ART64 FY15 20.509 ART64 36,343

Total Formula Grants for Rural Areas 88,938 —

6 (Continued)


Schedule of Expenditures of Federal Awards

Fiscal year ended September 30, 2016

CFDA Grantor/Contract Program Amounts PassedGrantor agency and program title number number expenditures through to subrecipients

Highway Safety Cluster:Passed through Florida Department of Transportation:

DOT Motorcycle Safety Grant 20.600 MC-16-10-08 $ 58,000 DOT Enhanced DUI Enforcement 20.616 MHVE 16-06-09 / G0456 25,282

Total Highway Safety Cluster 83,282 —

Total U.S. Department of Transportation 4,996,564

Institute of Museum and Library Services:Grants of States:

E-Gov Services to FL Public Libraries 2015-Get Help 45.310 15-LSTA-A-04-B 12,000

Total Institute of Museum and Library Services 12,000 —

U.S. Election Assistance Commission:Help America Vote Act Requirements Payments:

Grant Election Activities 90.401 MOA 43,555 Federal Election Activities 90.401 MOA 9,040

Total Help America Vote Act Requirements Payments 52,595 —

Total U.S. Election Assistance Commission 52,595

U.S. Department of Health and Human Services:Aging Cluster:

Passed through Florida Department of Elder Affairs:Title IIIB Transportation FY15 93.044 OAA-EA015-Pasco-Transportation 81,301 Title IIIB Transportation – FY16 93.044 OAA-ELO16 48,406

Total Program 129,707 —

Passed through Florida Department of Elder Affairs, then through West Central Florida Agency on Aging:Elderly Nutrition Title IIIC 93.045 C-1 EA015 Nutrition FY15 – Federal 66,176 Elderly Nutrition Title IIIC 93.045 C-1 EA015 Nutrition FY15 – PI 2,713 Elderly Nutrition Title IIIC 93.045 C-2 EA015 Nutrition FY15 144,777 Elderly Nutrition Title IIIC 93.045 C-1 EA-016 Nutrition FY16 1,552 Elderly Nutrition Title IIIC 93.045 C-2 EA-016 Nutrition FY16 431,658 Elderly Nutrition Title IIIC 93.045 C-2 EA015 Nutrition FY15 – PI 622 Nutrition Services Incentive Program 93.045 C-1 EU-016 Nutrition FY16 30,843 Nutrition Services Incentive Program 93.045 C-2 EU-016 Nutrition FY16 84,960

Total Program 763,301 —

Passed through Area Agency on Aging of Pasco Pinellas Inc:Nutrition Services Incentive Program 93.053 C-2 EU015 Nutrition FY15 – Fed NSIP 12,647 —

Total Aging Cluster 905,655

Substance Abuse and Mental Health Services Projects of Regional and National Significance:Passed through Florida Department of Health:

Pasco County Adult Drug Court Expansion – Dependency 93.243 5H79TI026111-02 226,743 Pasco County Veterans Treatment Court Grant FY16 93.243 5H79TI025040-03 432,966

Total Substance Abuse and Mental Health Services Projects of Regional and National Significance 659,709 —

Temporary Assistance for Needy Families (TANF) Cluster:Passed through Florida Department of Children and Families:

Child Protection Investigation 93.558 QJZ33 1,163,648

Total TANF Cluster 1,163,648 —

Child Support Enforcement:Passed through Florida Department of Revenue:

Child Support Enforcement 93.563 COC51 402,294 —

Low-Income Home Energy Assistance:Passed through Florida Department of Elder Affairs:

Emergency Home Energy Assistance for Elderly 93.568 EHEAP EP015-PASCO 9,495 Emergency Home Energy Assistance for Elderly 93.568 EHEAP EP016-PASCO 59,674

Total Low-Income Home Energy Assistance 69,169 —

Foster Care Title IV-E:Passed through Florida Department of Children and Families:

Temporary Assistance for Needy Families Block Grant 93.658 QJZ33 118,968 — Social Services Block Grant

Passed through Florida Department of Children and Families:Social Services Block Grant 93.667 QJZ33 1,105,900 —

Total U.S. Department of Health and Human Services 4,425,343

Executive Office of the President:High Intensity Drug Trafficking Areas Program:

Pasco HIDTA 95.001 G14CF0014B 330 Pasco HIDTA 95.001 G15CF0014A 38,299 Pasco HIDTA 95.001 G16CF0014A 109,332

Total High Intensity Drug Trafficking Areas Program 147,961 —

Total Executive Office of the President 147,961

U.S. Department of Homeland Security:Emergency Food and Shelter National Board Program:

Emergency Food and Shelter Program 97.024 FEMA XXXII 14,000 — Hazard Mitigation Grant:

Hazard Mitigation Grant FY 15 97.039 15-HM-6B-08-61-01-172 553,928

Emergency Management Performance Grants:Passed through Florida Division of Emergency Management:

EOC A/V Enhancement EMPG 97.042 17-FG-4D08-61-01-188 150,871 EMPG Trust Grant FY 15-16 97.042 16-FG-5A-08-61-01-118 130,209 Community Emergency Response Team (CERT) FY 15-16 97.042 16-CI-S9-08-61-02-392 6,500 Citizen Corps Grant (FY15/16) 97.042 16-CC-59-08-61-02-393 2,420

Total Emergency Management Performance Grants 290,000 —

Homeland Security Grant Program:Passed through Florida Department of Community Affairs:

Homeland Security Grant Program (FY14/15) 97.067 15-DS-P4-08-61-01-377 16,050 Operation Stonegarden – Paradise Lost 97.067 15-DS-P9-08-61-01-482 66,904 Operation Stonegarden – Choke Point 97.067 16-DS-U8-08-61-01-374 24,882

Total Homeland Security Grant Program 107,836 —

Staffing for Adequate Fire and Emergency Response (SAFER):SAFER Grant 97.083 EMW-2014-FF00387 87,016 —

Total U.S. Department of Homeland Security 1,052,780

Total Expenditures of Federal Awards $ 49,715,932 $ 618,062

See accompanying notes to schedules of expenditures of federal awards and state financial assistance.

7


Schedule of Expenditures of State Financial Assistance

Year ended September 30, 2016

CSFA GrantorGrantor agency and project title number number Expenditures

Executive Office of the Governor:Emergency Management Programs:

Emergency Management Preparation and Assistance 31.063 16-BG-83-08-61-01-051 $ 105,806

Emergency Management Projects:Hazardous Materials Plan Agreement Planning 31.067 16-CP-11-08-61-01-198 3,389 Hazardous Materials Plan Agreement Planning 31.067 15-CP-11-08-61-01-257 4,853

Total Emergency Management Projects 8,242

Total Executive Office of the Governor 114,048

Florida Department of Environmental Protection:Water Management Districts – Land Acquisition and Improvement:

Implementation of BMP’s in the Duck Slough Watershed N502 37.022 13C00000015 55,359 Statewide Surface Water Restoration and Wastewater Projects:

LP51020 Lacoochee Trilby Water 37.039 LP51020 500,000 Florida Springs Grant Program:

N547 – Heritage Pines 37.052 14C00000013 300,000

Total Florida Department of Environmental Protection 855,359

Florida Department of Economic Opportunity:Economic Development Transportation Fund:

Economic Development Transportation Trust Fund 40.002 SB12-081 1,274,086 Local Economic Development Initiatives:

Florida Sports Foundation Grant 40.012 TD15-069 13,230

Total Florida Department of Economic Opportunity 1,287,316

Florida Department of State and Secretary of State:State Aid to Libraries:

State Aid to Libraries 45.030 16-ST-70 168,253

Total Florida Department of State and Secretary of State 168,253

Florida Housing Finance Corporation:State Housing Initiatives Partnership (SHIP) Program:

State Housing Initiative Partnership Program FY 2015/2016 52.901 M01-UC-18-0216 2,353,291 State Housing Initiative Partnership Program 52.901 Program Income 1,738,694

Total SHIP Program 4,091,985

Total Florida Housing Finance Corporation 4,091,985

Florida Department of Transportation:Florida Commission for the Transportation Disadvantaged Trip and Equipment Grant Program:

Transportation Disadvantaged Trip and Capital TD Operating 55.001 G0B92 170,892 Transportation Disadvantaged Planning Grant TD Operating FY15 55.001 G0182 487,425

Total Florida Commission for the Transportation Disadvantaged Trip and Equipment Grant Program 658,317

Florida Commission for the Transportation Disadvantaged Planning Grant Program:Transportation Disadvantaged Planning Grant FY 2016 55.002 G0250 25,748

County Incentive Grant Program:CIGP SR54 & Morris Bridge Rd/Eiland Blvd Intersection 55.008 ARE33 FPN: 416561 3 48 01 418,917 CIGP CR54 at US 301 55.008 FPN 08857243190915801 316,219 CIGP Moon Lake Rd @ SR52 55.008 AQQ83 FPN: 430383 1 48 01 153,057

Total County Incentive Grant Program 888,193

Public Transit Block Grant Program:Transit Block Grant FY16 – State 55.010 G0920 579,293 Transit Block Grant – State FY15 55.010 ARQ83 402,454

Total Public Transit Block Grant Program 981,747

Transit Corridor Program:MPO Section 5305(d) 55.013 ARA88 2013-14 State 6,695 MPO Section 5305(d) 55.013 ARM21 2014-15 State 2,848 US19 FDOT 408319-1-84-14 FY15 55.013 ARQ84 200,000 SR 54 Capital 55.013 AR932 953,392 SR 54 TRANSIT CORRIDOR FY15 55.013 ARQ85 222,390

Total Transit Corridor Program 1,385,325

Transportation Regional Incentive Program (TRIP):TRIP Ridge Rd (Little Road to Moon LK) 55.026 AQQ73 FPN 422712 1 58 01 82,833

Transportation Infrastructure Program:TIP Interlaken Road, from Community Drive to Gunn Highway (CR 587) 55.029 ARA82 FPN: 430446 1 38/48/58 01 1,108,129

Total Florida Department of Transportation 5,130,292

Florida Department of Health:County Grant Awards:

EMS "C" Grant County Award 15-16 64.005 C4051 32,195

Total Florida Department of Health 32,195

Florida Department of Elder Affairs:Local Services Programs:

Passed through Area Agency on Aging of Pasco-Pinellas Inc:Elderly Nutrition Title IIIC 65.009 C-1 EL-015 Nutrition FY16 72,745 Elderly Nutrition Title IIIC 65.009 C-2 EL-015 Nutrition FY16 48,493 Title IIIB Transportation – FY16 65.009 OAA-EAO16 181,206

Total Local Services Programs 302,444

Total Florida Department of Elder Affairs 302,444

8 (Continued)


Schedule of Expenditures of State Financial Assistance


CSFA GrantorGrantor agency and project title number number Expenditures

Florida Department of Juvenile Justice:Juvenile Assessment Centers:

Juvenile Assessment 80.020 10368 $ 22,997 Juvenile Assessment 80.020 1638 205,827

Total Juvenile Assessment Centers 228,824

Diversion Services:At Risk Youth 80.022 X1598 21,507 At Risk Youth Diversion 80.022 10350 140,740

Total Diversion Services 162,247

Total Florida Department of Juvenile Justice 391,071

Total Expenditures of State Financial Assistance $ 12,372,963

See accompanying notes to schedules of expenditures of federal awards and state financial assistance.

9

PASCO COUNTY, FLORIDA Notes to Schedules of Expenditures of Federal Awards and State Financial Assistance

September 30, 2016

10

(1) Basis of Presentation The accompanying schedules of expenditures of federal awards and state financial assistance (the Schedules) include the federal and state grant activity of the County, and are presented on the accrual basis of accounting. The information in these schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), and Chapter 215.97, Florida Statutes. Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.

(2) Loans Outstanding The County had the following loan balances outstanding at September 30, 2016. For federal programs, the outstanding loan balance at the beginning of the year and the current year additions related to the loans are included in the schedule of expenditures of federal awards as expenditures. For state programs, only the current year additions related to the loans are included in the schedule of expenditures of state financial assistance.

CFDA/CSFA # Program Amount

14.218 Community Development Block Grant / Entitlement Grants $ 8,578,68514.256 Neighborhood Stabilization Program NSP2 9,285,64314.239 HOME Investment Partnerships Program 11,541,33552.901 State Housing Initiative Partnership (SHIP) Program 20,132,869

$ 49,538,532

(3) Administrative Cost Allowance The County has elected not to use the 10% deminimus indirect cost rate as outlined in the Uniform Guidance.

(4) Contingencies and Other Matters Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the County. The County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. As of September 30, 2016, management is not aware of any material questioned or disallowed costs as a result of grant audits in process or completed.

PASCO COUNTY, FLORIDA Schedule of Findings and Questioned Costs

September 30, 2016

11 (Continued)

(1) Section I – Summary of Auditors’ Results (a) Type of report issued on whether the financial statements were

prepared in accordance with U.S. generally accepted accounting principles: Unmodified

(b) Internal control deficiencies over financial reporting disclosed by the audit of the financial statements:

Material weaknesses: Yes

Significant deficiencies: Yes

(c) Noncompliance material to the financial statements: No

Federal Awards (d) Internal control deficiencies over major programs disclosed by the audit:

Material weaknesses: No

Significant deficiencies: No

(e) Type of report issued on compliance for major programs: Unmodified

(f) Audit findings that are required to be reported in accordance with 2 CFR 200.516(a) No

(g) Major federal programs

Federal awards CFDA number

U.S. Department of Housing and Urban Development:Community Development Block Grants / Entitlement Grants 14.218

U.S. Department of Transportation:Federal Transit Cluster 20.507, 20.526

U.S. Department of Health and Human Services:Temporary Assistance for Needy Families 93.558Social Services Block Grant 93.667

(h) Dollar threshold used to distinguish between Type A and Type B programs:

Federal awards $750,000 (i) Auditee qualified as a low-risk auditee: No

State Projects

(j) Internal control deficiencies over major projects disclosed by the audit:

Material weaknesses: No


September 30, 2016

12 (Continued)

Significant deficiencies: Yes

(k) Type of report issued on compliance for major programs: Unmodified

(l) Audit findings that are required to be reported in accordance with Chapter 10.550 Yes

(m) Major state projects

State projects CSFA number

Florida Department of Environmental Protection:Statewide Surface Water Restoration and Wastewater Projects 37.039

Florida Department of Economic Opportunity:Economic Development Transportation Fund 40.002

Florida Department of Community Affairs:State Housing Initiative Partnership 52.901

Florida Department of Transportation:Florida Commission for the Transportation Disadvantaged

Trip and Equipment Grant Program 55.001

(n) Dollar threshold used to distinguish between Type A and Type B programs:

State projects $371,189

(2) Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards Finding 2016-001 Criteria

Proper reporting of financial results in a timely and accurate manner is an important component of internal control. Controls should be in place to monitor account balances on a regular basis to detect potential errors that could impact the accurate reporting of financial results.

Condition

In performing our audit procedures we identified several audit differences and adjusting entries, primarily in the areas of capital assets, cash, accounts payable, accounts receivable, and restricted cash and investments.

Context

The finding is systemic in nature as several audit adjustments were needed to finalize year end account balances.


September 30, 2016

13 (Continued)

Effect

Ineffective design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements may prevent management from identifying a material misstatement, whether due to fraud or error.

Cause

Continued transition of key finance department personnel involved in the financial reporting process, along with a conversion of the general ledger system in the current year have caused the deficiency. Additionally, specific to capital assets, the fact that capital asset activity is only entered annually creates the potential for errors to occur.

Recommendation

Management should establish policies and procedures to monitor and reconcile account balances on a monthly basis. There should be adequate supervision and effective review performed to ensure all reconciliations are taking place on a timely basis and that journal entries related to reconciliations are properly reviewed. When errors are identified that require adjustment, the nature of the error needs to be identified and corrected in the appropriate accounting period so that similar errors in the future do not occur. Additionally, the County should consider the development of a year-end checklist and timeline to include key elements to consider in closing the books at year end as well as critical elements for review in the draft financial statements; for example a review of balances relative to prior year for those that remain unchanged, a review of construction work in progress balances for projects with no activity, and a review of reimbursement-based grant funds to ensure that proper accruals of unreimbursed costs have been made at year-end in order to avoid presentation of deficit fund balances.

View of Responsible Officials

The implementation of the new ERP System, Tyler Munis in August 2016 led to various resource constraints as the end of the fiscal year approached. The implementation of the new ERP System went live in late August which put a halt in the day-to-day operations for both the Clerk & Comptroller’s Office, as well as, county staff. The Financial Services Management Team, in conjunction with various members of county staff, has worked to develop and enhance the necessary controls used to monitor account balances and detect potential errors.

The Financial Services Management Team has also worked within the organization to develop new policies and procedures and set the necessary expectations related to the implementation of the new ERP System. These policies and procedures will enhance the Clerk & Comptroller’s Office and Pasco County’s internal controls to ensure that account balances are reconciled and reviewed on a monthly basis. The Director and Managers of Financial Services will review all reconciliations to ensure that they are being completed timely and that the necessary adjusting entries are made in the appropriate periods. These policies and procedures, along with the necessary month and year end checklist, have been developed to set expectations for both the Clerk & Comptroller’s Office and Pasco County staff to ensure that processes are completed in a timely manner. These procedures include, but are not limited to, the entry and reconciliation of capital asset related items and the review of reimbursement based grant funds. This will result in limiting the number of post-closing entries and allowing for the preparation and fair presentation of financial statements.


September 30, 2016

14 (Continued)

Finding 2016-002 Criteria

Management is responsible for the preparation and fair presentation of financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Condition

The Community Development loan tracking database does not track payoff of loans receivable or payments on these loans. As a result, County personnel from Community Development are currently unable to create properly supported roll-forwards and reconciliations to ensure the completeness and accuracy of loans receivable and deferred revenue. Similarly, Community Development is unable to reconcile its records to the information reported by the third party loan servicer, MFS. Therefore, Community Development is unable to identify any errors that may occur related to the completeness or accuracy of MFS’ reports, including the balance of loans receivable, loan delinquency, and other relevant account information.

Context

Total loans receivable of the Community Development function of the County amounted to approximately $50,000,000 at September 30, 2016.

Effect

Ineffective design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements may prevent management from identifying a material misstatement, whether due to fraud or error.

Cause

The County does not have effective reconciliation controls in place to ensure the completeness and accuracy of notes receivable.

Recommendation

A knowledgeable person should reconcile the general ledger balance of loans receivable to the outstanding loan balances reported by the third-party loan servicer and maintained internally by the Community Development department on a consistent basis throughout the year and maintain documentation to support additions, deletions and other activity affecting the loan balance. Additionally, such reconciliation should be reviewed by someone other than the preparer to help identify errors in supporting documentation and calculations.


September 30, 2016

15 (Continued)

View of Responsible Officials

After audit differences of incorrect balances in the reporting on the loans outstanding in prior years, the County has decided to bring those functions in-house and bring all loan information and balances in to one database. A software system was purchased in FY 2017, and an agreement has been signed with the Tax Collector for payment collection. While no mistakes were found on the FY 2016 database and balances, it is acknowledged this is an ineffective system. Because of the transition in loan database management, the suggestions to better track with the current database was not implemented, but will be corrected when the new system is in place. The goal is to implement daily reconciliations.

(3) Findings and Questioned Costs Relating to Federal Awards None

(4) Findings and Questioned Costs Relating to Major State Projects Finding 2016-003 - Eligibility State Agency

Florida Department of Transportation

State Project

Florida Commission for the Transportation Disadvantaged Trip and Equipment Grant Program, CSFA #55.001, Projects G0B92 and G0182, State fiscal years 2015-2016 and 2016-2017

Criteria

Section 215.97(1), Florida Statutes, the Florida Single Audit Act, requires nonstate entities, including management and other personnel, to develop processes designed to provide reasonable assurance of compliance with the provisions of laws, regulations, and other rules pertaining to state awards that have a material effect on each major state project.

Condition Found

During the test of operating effectiveness of internal controls surrounding eligibility for free or discounted bus passes, we identified that the County was unable to provide evidence to demonstrate that segregation of duties exists between performing the review of bus pass applications, determining eligibility, and entering the individuals into the Transview system for tracking. Therefore, we were unable to determine that effective segregation of duties exists within the eligibility control process to prevent, or detect and correct, noncompliance on a timely basis.

Based on walkthroughs performed with management, the County appears to have a process in place in which a preliminary review of eligibility is performed by an individual separate from the individual who finalizes the determination, creates a unique identification code, and enters the applicant into the Transview system tracking. However, evidence to support this understanding was not able to be produced.


September 30, 2016

16

Cause and Possible Asserted Effect

Evidence of segregation of duties within management controls surrounding the determination of eligibility for free or discounted bus passes is not maintained by the County.

Assigning the responsibility for authorizing transactions, recording transactions, and maintaining custody of assets to different people is intended to reduce the opportunities for any one person to be in a position to both perpetrate and conceal errors, fraud, or noncompliance in the normal course of his or her duties. Not having proper segregation of duties could inhibit the County’s ability to prevent, or detect and correct, noncompliance on a timely basis.

Questioned Costs

None

Whether the Sample Was a Statistically Valid Sample

The sample was not intended to be, and was not, a statistically valid sample.

Identification of Whether the Audit Finding Was a Repeat Finding in the Immediately Prior Audit

A similar finding was reported in the prior year’s audit as finding 2015-005.

Recommendation

We recommend the County maintain evidence of proper segregation of duties when approving bus pass eligibility determination to substantiate that controls exist to prevent, or detect and correct noncompliance on a timely basis.

Views of Responsible Officials

Pasco County Public Transportation Department Management has worked to ensure that procedures have been established regarding the separation of duties in regards to determining the eligibility for free or discounted bus passes as identified in the year prior audit. It has been determined during this audit that these new procedures established will require some additional refinement to the tracking and documentation of determination of eligibility. Pasco County Public Transportation is currently developing a checklist to implement to ensure all proper steps are documented and signed off by the appropriate authority.

CORRECTIVE ACTION PLAN

Pasco County, Florida 09/30/2016

Finding No. Name of Responsible Official Description of Corrective Action Anticipated Completion Date

2016-001 Manny Long, Director of Finance

The Financial Services Management Team, in conjunction with various members of county staff, has worked to develop and enhance the necessary controls used to monitor account balances and detect potential errors. The Financial Services Management Team has also worked within the organization to develop new policies and procedures which will ensure that account balances are reconciled and reviewed on a monthly basis.

Corrective action is ongoing with the development of additional

amendments to current processes and procedures for the new Enterprise Resource Planning (ERP) System and

management review.

2016-002 George Romagnoli,

Community Development Director

The County has decided to bring those functions in-house and bring all loan information and balances in one database. A software system was purchased in FY 2017, and an agreement has been signed with the Tax Collector for payment collection. The goal is to implement daily reconciliations.

Corrective action is pending implementation of the new

software and payment collection with the Tax Collector.

2016-003 Kurt Scheible, Public

Transportation Director

Pasco County Public Transportation Department Management has worked to ensure that procedures have been established regarding the separation of duties in regards to determining the eligibility for free or discounted bus passes. Additional refinement to the established procedures in tracking and documentation of determination of eligibility is required along with a checklist to ensure all proper steps are documented and signed off by the appropriate authority.

Corrective action is pending additional modification to current

procedures and management review.

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS


Finding No. Name of Responsible Official Description of Corrective Action Status

2015-001 Manny Long, Director of Finance

The Financial Services Management Team, in conjunction

with various members of county staff, has worked to develop and enhance the necessary controls

used to monitor account balances and detect potential errors. The Financial Services Management Team has also worked within the

organization to develop new policies and procedures which will ensure that account balances are

reconciled and reviewed on a monthly basis.

Partially Corrected, See Finding 2016-001

2015-002

Robert Sigmond, Utilities Fiscal &

Business Services Director

Corrective Action Taken Corrected

2015-003 George Romagnoli,

Community Development Manager

The County has decided to bring those functions in-house and bring all loan information and balances in one database. A software system

was purchased in FY 2017, and an agreement has been signed with

the Tax Collector for payment collection. The goal is to implement

daily reconciliations.

Partially Corrected. See Finding 2016-002

2015-004 Kristina McGonigal,

Fiscal Services Manager

Corrective Action Taken Corrected

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS


Finding No. Name of Responsible Official Description of Corrective Action Status

2015-005 Kurt Scheible, Public

Transportation Director

Pasco County Public Transportation Department

Management has worked to ensure that procedures have been established regarding the

separation of duties in regards to determining the eligibility for free or discounted bus passes. Additional

refinement to the established procedures in tracking and

documentation of determination of eligibility is required along with a

checklist to ensure all proper steps are documented and signed off by

the appropriate authority.

Partially Corrected. See Finding 2016-003

When reporting the status of prior audit findings, the status is described in one of the following ways:•When audit findings were fully corrected, the summary schedule need only list the audit findings and state that

corrective action was taken.•When audit findings were not corrected or were only partially corrected, the summary schedule describes the

planned corrective action as well as any partial corrective action taken.•When the corrective action taken is significantly different from the corrective action previously reported in a corrective action plan or in the federal agency's or pass-through entity's management decision, the summary schedule

provides an explanation.•When the auditee believes the audit findings are no longer valid or do not warrant further action, the reasons for this position are described in the summary schedule. A valid reason for considering an audit finding as not warranting

further action is that all of the following have occurred: -Two years have passed since the audit report in which the finding occurred

was submitted to the Federal Clearinghouse, -The federal agency or pass-through entity is not currently following up with

the auditee on the audit finding, and -A management decision was not issued.

The Distinguished Members of the Board of County Commissioners Pasco County, Florida:

We have audited the financial statements of the governmental activities, the business–type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Pasco County, Florida as of and for the year ended September 30, 2016, which collectively comprise Pasco County, Florida’s basic financial statements and have issued our report thereon dated August 7, 2017.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). We have also issued our report dated August 7, 2017 on our consideration of Pasco County, Florida’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters, as well as our report dated September 27, 2017, on our consideration of Pasco County, Florida’s compliance and internal control over compliance that could have a direct and material effect on each major federal program and major state project, and the related schedule of findings and questioned costs. Disclosures in those reports and schedule should be considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter.

Prior Audit Findings The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. The status of findings and recommendations made in the preceding financial audit report is included in Appendix A.

Other Matters The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, any recommendations to improve Pasco County, Florida’s financial management. Current year recommendations are included in Appendix B.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.

Official Title and Legal Authority The Rules of the Auditor General, Section 10.554(1)(i)(4), also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the



The Distinguished Members of the Board of County Commissioners September 27, 2017 Page 2 of 2

management letter, unless disclosed in the notes to the financial statements. Pasco County, Florida was established by the Constitution of the State of Florida, Article VIII, Section 1(d). Additional disclosure regarding the reporting entity is included in the notes to the financial statements.

Condition of Financial Emergency The Rules of the Auditor General, Section10.554(1)(i)(5)(a), require that a management letter include the results of our determination as to whether Pasco County, Florida has met one or more of the conditions described in Section 218.503(1), Florida Statutes, regarding a financial emergency.

Management of Pasco County, Florida has determined that Pasco County, Florida is not in a state of financial emergency as defined in Section 218.503(1), Florida Statutes. In connection with our audit of the financial statements, the results of our tests did not indicate that Pasco County, Florida has met any of the conditions described in Section 218.503(1), Florida Statutes.

Financial Condition Assessment As required by the Rules of the Auditor General, Section 10.554(1)(i)(5)(c), we applied financial condition assessment procedures pursuant to Section 10.556(8). It is management’s responsibility to monitor Pasco County, Florida’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Annual Financial Report The Rules of the Auditor General, Section 10.554(1)(i)(5)(b), require that we determine whether the annual financial report for Pasco County, Florida for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these reports were in agreement.

* * * * * * *

This management letter is intended solely for the information and use of the Board of County Commissioners, management of Pasco County, Florida, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.

September 27, 2017 Certified Public Accountants

A-1

Appendix A

Prior Year Recommendations

2014–BCC–ML–2/3 Capital Assets

While the County maintains detailed records of its capital assets as required by Florida Statutes, there is a significant amount of effort that takes place at the end of the fiscal year to reconcile these records internally to the general ledger and to prepare the information necessary for reporting in the County’s annual financial statements. We identified several errors related to: a lack of verification over the mathematical accuracy of project schedules to support additions of intangible assets, improper accounting for the deletion of capital assets and related depreciation, and reporting of capital asset activity in the incorrect accounting period. While some of these issues are related to limitations of the County’s current general ledger system, they are also related to a lack of thorough review of supporting documentation provided for journal entries to record capital asset activity, as well as reconciling such information to the footnote disclosures. We suggest management enhance its current process to ensure that an effective review is performed over capital asset activity for inclusion in the financial statements.

Management Response Another member of the management team will review the capital assets year end spreadsheets and documentation to ensure accuracy in the reporting of capital asset activity.

2015 Status

While a review was performed, there were errors identified as a result of the audit procedures performed.

2016 Status

While a review was performed, there were errors identified as a result of the audit procedures performed.

2014–BCC–ML–3/3 Developer Credits

As a result of our audit procedures and through review of the process for the tracking of developer credits, we identified management does not have an effective process in place to monitor and update the status of developer credits available to contractors. While the Clerk’s office uses a schedule titled “Transportation Impact Fee – Developer Credit Accounts,’ this schedule was not updated for current year activity and is not reconciled with the developer credit memos issued by the permitting department. We recommend the Clerk’s office create a formal procedure to periodically reconcile their data to the permitting department activity to ensure its completeness and accuracy.

Management Response

County management has designated an accountant to oversee all Developer Credits. Central Permitting will submit Developer Credit balances and documentation monthly to the Clerk’s Office for audit review to ensure completeness and accuracy.

2015 Status

Uncorrected. In reviewing the process to track developer credits, we continue to note that there is not a timely reconciliation being performed between amounts per the Clerk’s office and the amounts per the Permitting Department. We recommend the Clerk’s office create a formal procedure to periodically reconcile their data to the Permitting Department activity to ensure the completeness and accuracy.

A-2

2016 Status

Uncorrected

BCC GAS Finding 2014–001 Criteria:

Proper reporting of financial results in a timely and accurate manner is an important component of internal control. Controls should be in place to monitor account balances on a regular basis to detect potential errors that could impact the accurate reporting of financial results.

Condition:

In performing our audit procedures we received multiple versions of supporting schedules and other audit evidence which did not agree, nor had been reconciled to, the general ledger. Such differences generally resulted in additional journal entries that needed to be posted to the general ledger, primarily in the areas of investments, allowance for doubtful accounts, debt, compensated absences, vouchers payable, and capital assets..

2015 Status

Uncorrected. See GAS Finding 2015-001

2016 Status


BCC GAS Finding 2014–002 Criteria

Management is responsible for the preparation and fair presentation of financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. A key component of an effective internal control environment is the timely reconciliation of accounts to the general ledger.

Condition

Subsequent to the County’s conversion of the utility billing system in June 2014, there were several key controls that did not take place from June through September 30, 2014 which included:

A monthly reconciliation of customers deposits to the general ledger

A daily reconciliation of cash receipts to the bank statement and general ledger

A periodic reconciliation of meter readings to the amount of water usage billed to customers. Context

While the unreconciled differences, if any, at year end were not material to the financial statements, given the volume of transactions that are processed by the utility department on a daily basis increases the likelihood that a significant error could go uncorrected.

Effect

Ineffective design, implementation, and maintenance of internal control may prevent management from identifying a material misstatement, whether due to fraud or error.

A-3

Cause

At the time of the utility billing system conversion, the County had not completely evaluated the necessary changes that would be required to its business processes to ensure that existing reconciliations could continue to be performed effectively.

Recommendation

The County continue to review the modifications that are needed to its internal reconciliation processes to ensure that reconciliations of cash receipts and billings are being performed effectively and in a timely manner.

2015 Status


2016 Status

Corrected.

BCC GAS Finding 2014–003 Criteria:

Management is responsible for the preparation and fair presentation of financial statements in accordance with U.S. generally accepted accounting principles; this included the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud.

Condition:

The Community Development loan tracking database does not track payoff loans receivable or payments on these loans. As a result, Community Development is currently unable to create properly supported rollforwards and reconciliations to ensure the completeness and accuracy of loans receivable and deferred revenue. Similarly, Community Development is unable to reconcile its records to the information reported by the third party loan servicer, MFS. Therefore, Community Development is unable to identify any errors that may occur related to the completeness or accuracy of MFS’ reports, including the balance of loans receivable, loan delinquency, and other relevant account information.

2015 Status


2016 Status


Tabulation of Uncorrected Audit Findings

Current Year Finding # 2014/2015 Finding # 2013/2014 Finding #

GAS Finding 2016 -001 GAS Finding 2015 -001 GAS Finding 2014-001

N/A GAS Finding 2015 -002 GAS Finding 2014-002

GAS Finding 2016 -002 GAS Finding 2015 -003 GAS Finding 2014-003

GAS Finding 2016 -001 GAS Finding 2015 -001 2014-BCC-ML-2/3

2016-BCC-ML-1/1 2015-BCC-ML-1/1 2014-BCC-ML-3/3

B-1

Appendix B

Current Year Recommendations

2016-BCC-ML-1/1 Developer Credits

In reviewing the process to track developer credits, we continue to note that there is not a timely reconciliation being performed between amounts per the Clerk’s office and the amounts per the Permitting Department. We recommend the Clerk’s office create a formal procedure to periodically reconcile their data to the Permitting Department activity to ensure the completeness and accuracy.

Management Response

Management from the Clerk’s Office and Central Permitting will work on developing a set of policies and procedures to ensure that developer credit accounts are periodically reconciled. These procedures will define the process that will be followed when reconciliation discrepancies are discovered between Central Permitting’s new system Accela, and General Ledger’s new Enterprise Resource Planning system Tyler Munis. These policies and procedures will be followed to make the necessary adjustments required to present complete and accurate balances.



Independent Accountants’ Report Distinguished Members of the Board of County Commissioners Pasco County, Florida: We have examined Pasco County, Florida’s (the County) compliance with Section 218.415, Florida Statutes as of September 30, 2016. Management of the County is responsible for the County’s compliance with the specified requirements. Our responsibility is to express an opinion on the County’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, Pasco County, Florida complied, in all material respects, with Section 218.415, Florida Statutes as of September 30, 2016.




Independent Accountants’ Report Distinguished Members of the Board of County Commissioners Pasco County, Florida: We have examined Pasco County, Florida’s (the County) compliance with Section 365.172(10), Florida Statutes during the year ended September 30, 2016. Management of the County is responsible for the County’s compliance with the specified requirements. Our responsibility is to express an opinion on the County’s compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the County complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the County complied with the specified requirements. The nature, timing and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the County’s compliance with specified requirements. In our opinion, Pasco County, Florida complied, in all material respects, with Section 365.172(10), Florida Statutes during the year ended September 30, 2016.


PASCO COUNTY, FLORIDA CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER

FINANCIAL STATEMENTS

YEAR ENDED SEPTEMBER 30, 2016

(WITH INDEPENDENT AUDITORS’ REPORT THEREON)


TABLE OF CONTENTS YEAR ENDED SEPTEMBER 30, 2016

INDEPENDENT AUDITORS’ REPORT 1

FINANCIAL STATEMENTS

Balance Sheet – Governmental Funds 4

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 5

Statement of Net Position – Internal Service Fund 6

Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Fund 7

Statement of Cash Flows – Internal Service Fund 8

Statement of Fiduciary Net Position – Agency Fund 9

Notes to Financial Statements 10


Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund (Budgetary Basis) 25

Notes to the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General Fund (Budgetary Basis) 26

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Fine and Forfeiture Fund 27

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Public Records Modernization Fund 28

Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Records Modernization Article V Fund 29

SUPPLEMENTARY INFORMATION

Combining Balance Sheet – General Fund 30

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – General Fund 31

Combining Balance Sheet – Nonmajor Governmental Funds 32

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 33

Statement of Changes in Assets and Liabilities – Agency Fund 34


TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2016

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 35

MANAGEMENT LETTER 37

INDEPENDENT ACCOUNTANTS' REPORT – SECTION 218.415, FLORIDA STATUTES 39

INDEPENDENT ACCOUNTANTS' REPORT – SECTION 28.35 AND 28.36, FLORIDA STATUTES 40

1


Honorable Paula S. O’Neil, Ph.D., Clerk of Circuit Court and County Comptroller, Pasco County, Florida:

Report on the Financial Statements We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Pasco County, Florida Clerk of Circuit Court and County Comptroller (the Clerk & Comptroller), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk & Comptroller’s basic financial statements as listed in the table of contents.





An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.


Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Clerk & Comptroller as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with U.S. generally accepted accounting principles.



2

Emphasis of Matter

As discussed in note 1(a) to the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Clerk & Comptroller as of September 30, 2016, and the changes in its financial position and, where applicable, its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles. Our opinions are not modified with respect to this matter.

Other Matters

Required Supplementary Information U.S. generally accepted accounting principles require that the budgetary comparison information for the General, Fine and Forfeiture, Public Records Modernization, and Records Modernization Article V funds on pages 25–29 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Clerk & Comptroller’s basic financial statements. The Combining Balance Sheets for the General and Nonmajor Governmental funds, the Combining Statement of Revenues, Expenditures and Changes in Fund Balances for the General and Nonmajor Governmental funds, and the Statement of Changes in Assets and Liabilities – Agency funds are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining Balance Sheets for the General and Nonmajor Governmental funds, the Combining Statement of Revenues, Expenditures and Changes in Fund Balances for the General and Nonmajor Governmental funds, and the Statement of Changes in Assets and Liabilities – Agency funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining Balance Sheets for the General and Nonmajor Governmental funds, the Combining Statement of Revenues, Expenditures and Changes in Fund Balances for the General and Nonmajor Governmental funds, and the Statement of Changes in Assets and Liabilities – Agency funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

3

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2017 on our consideration of the Clerk & Comptroller’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Clerk & Comptroller’s internal control over financial reporting and compliance.

May 15, 2017 Certified Public Accountants


BALANCE SHEET GOVERNMENTAL FUNDS

SEPTEMBER 30, 2016

See accompanying Notes to Financial Statements. 4

Public Records Nonmajor TotalFine and Records Modernization Governmental Governmental

Assets General Forfeiture Modernization Article V Funds Funds

Cash and cash equivalents 3,449,924$ 2,325,723$ 1,832,746$ 84,339$ 15,009$ 7,707,741$ Accounts receivable 374,227 - - - - 374,227 Due from: - -

Board of County Commissioners 29,396 - - - - 29,396 Other governments 2,597 - - - - 2,597 Constitutional officers 2,394 - - - - 2,394

Prepaid expenditures 16,899 - 6,400 4,280 - 27,579 Total assets 3,875,437$ 2,325,723$ 1,839,146$ 88,619$ 15,009$ 8,143,934$

Liabilities and Fund BalancesLiabilities:

Vouchers payable 214,698$ 18,968$ 170,053$ 49,493$ -$ 453,212$ Accrued liabilities 183,521 231,539 - 39,126 - 454,186 Escrow deposits 3,373,575 781 - - - 3,374,356 Unearned revenue - 13,487 - - - 13,487 Other current liabilities 7,625 10,912 - - - 18,537

Total liabilities 3,779,419 275,687 170,053 88,619 - 4,313,778 Fund balances:

Nonspendable - prepaids 16,899 - 6,400 4,280 - 27,579 Restricted 96,018 2,050,036 1,662,693 - 15,009 3,823,756 Unassigned (16,899) - - (4,280) - (21,179)

Total fund balances 96,018 2,050,036 1,669,093 - 15,009 3,830,156 Total liabilities and fund balances 3,875,437$ 2,325,723$ 1,839,146$ 88,619$ 15,009$ 8,143,934$


STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS



Public Records Nonmajor Total

Fine and Records Modernization Governmental GovernmentalGeneral Forfeiture Modernization Article V Funds Funds

Revenues:Intergovernmental 503,361$ 4,512,217$ -$ -$ -$ 5,015,578$ Charges for services 2,876,535 5,950,762 291,425 888,188 2,688 10,009,598Fines and forfeitures - 1,847,443 - - - 1,847,443Interest and other earnings 32,570 4,348 4,958 (588) 34 41,322Miscellaneous 2,976,135 11,447 - 458,503 - 3,446,085

Total revenues 6,388,601 12,326,217 296,383 1,346,103 2,722 20,360,026

Expenditures:Current:

General government (noncourt related) 8,622,562 - 831,351 - - 9,453,913 Court related - 11,241,793 - 2,070,505 - 13,312,298

Total expenditures 8,622,562 11,241,793 831,351 2,070,505 - 22,766,211

Excess (deficiency) ofrevenues over expenditures (2,233,961) 1,084,424 (534,968) (724,402) 2,722 (2,406,185)

Other financing sources (uses):Transfers in:

Appropriations from the Board ofCounty Commissioners 3,398,561 - - - - 3,398,561

From other funds 124,045 - - 724,402 - 848,447 Transfers out:

To other funds (1,288,405) - - - (124,045) (1,412,450) Total other financing sources 2,234,201 - - 724,402 (124,045) 2,834,558

Net change in fund balances 240 1,084,424 (534,968) - (121,323) 428,373

Fund balances at beginning of year 95,778 965,612 2,204,061 - 136,332 3,401,783 Fund balances at end of year 96,018$ 2,050,036$ 1,669,093$ -$ 15,009$ 3,830,156$


STATEMENT OF NET POSITION INTERNAL SERVICE FUND

SEPTEMBER 30, 2016


Assets

Cash and cash equivalents 5,319,752$ Other assets 139,300

Total assets 5,459,052 Liabilities and Net Position

Liabilities:Claims payable 270,622

Total liabilities 270,622 Net position:

Unrestricted 5,188,430$


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUND



Operating revenues:

Charges for services 3,474,814$ Operating expenses:

Contractual services 3,961,876 Operating loss (487,062)

Nonoperating revenues:Interest and other earnings 12,736

Total nonoperating revenues 12,736

Transfers in 564,003 Change in net position 89,677

Net position at beginning of year 5,098,753 Net position at end of year 5,188,430$


STATEMENT OF CASH FLOWS INTERNAL SERVICE FUND



Cash flows from operating activities:

Receipts from customers 438,529$ Receipts from employees 573,401 Receipts from interfund services provided 2,462,884 Payments to suppliers for goods and services (4,093,078)

Net cash used in operating activities (618,264)

Cash flows from noncapital financing activity:Transfers from other funds 564,003

Net cash provided by noncapital financing activity 564,003

Cash flows from investing activity:Interest and other earnings 12,736

Net cash provided by investing activity 12,736

Net decrease in cash and cash equivalents (41,525)

Cash and cash equivalents at October 1, 2015 5,361,277

Cash and cash equivalents at September 30, 2016 5,319,752$

Reconciliation of operating loss to net cash used in operating activities:Operating loss (487,062)$ Adjustments to reconcile operating loss to net cash used in operating

activities:Changes in assets and liabilities:

Increase in other assets (800) Decrease in claims payable (130,402)

Total adjustments (131,202)

Net cash used in operating activities (618,264)$


STATEMENT OF FIDUCIARY NET POSITION AGENCY FUND

SEPTEMBER 30, 2016


Assets:

Cash and cash equivalents 17,318,118$ Total assets 17,318,118$

Liabilities:Due to Board of County Commissioners 319,971$ Due to other governments 2,688,474 Due to others 3,671,067 Deposits 10,638,606

Total liabilities 17,318,118$


NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2016

10

(1) Summary of Significant Accounting Policies

(a) Reporting Entity

The Pasco County, Florida, Clerk of Circuit Court and County Comptroller (the Clerk & Comptroller) is an elected constitutional officer as provided for by Article VIII, Section 1(d) of the Constitution of the State of Florida. Governmental Accounting Standards Board (GASB) Statement No. 14, The Financial Reporting Entity as amended by GASB Statement No. 61, The Financial Reporting Entity: Omnibus, requires the financial statements of a reporting entity to include its component units, if any. A component unit is a legally separate organization for which the elected officials of the primary government or financial reporting entity are financially accountable. Based on the aforementioned criteria, there are no component units included in the Clerk & Comptroller’s financial statements. The financial statements include the general, special revenue, proprietary (internal service), and agency funds of the Clerk & Comptroller. These financial statements have been prepared for the purpose of complying with Section 218.39(2), Florida Statutes, and Chapter 10.550, Rules of the Auditor General – Local Governmental Entity Audits, which allows the Clerk & Comptroller to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and certain disclosures, as well as management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Clerk & Comptroller as of September 30, 2016, and the changes in its financial position and its cash flows, where applicable, for the year then ended, in conformity with GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with U.S. generally accepted accounting principles (GAAP). As a constitutional officer, the financial activities of the Clerk & Comptroller are included in the Pasco County, Florida, (the County) Comprehensive Annual Financial Report.

(b) Measurement Focus, Basis of Accounting, and Basis of Presentation Fund financial statements report detailed information about the Clerk & Comptroller. The focus of governmental fund financial statements is on major funds rather than on reporting funds by type. Each major fund is reported in a separate column. Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in fund balance. In addition to the general fund, the Clerk & Comptroller has special revenue funds to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Clerk & Comptroller reports the following major funds, all of which are governmental:



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(1) Summary of Significant Accounting Policies (Continued) (b) Measurement Focus, Basis of Accounting, and Basis of Presentation (Continued)

General Fund The general fund is used to account for the general operations of the Clerk & Comptroller, and includes all transactions, which are not accounted for in another fund. With the implementation of Revision 7 to Article V on July 1, 2004, the Clerk & Comptroller’s activities are classified as court-related and non-court related. The Clerk & Comptroller’s General Fund activity is funded through service charges for recording instruments and documents into the official records, and through appropriations from the Pasco County Board of County Commissioners (the Board). Excess revenues at the end of the year if any, due back to the Board, are shown as a liability to the Board of County Commissioners in the General Fund. Special Revenue Funds Fine and Forfeiture Fund

This special revenue fund was established to account for court-related filing fees, service charges, fines, and court costs of the Clerk of Circuit Court and County Comptroller, as mandated by Section 28.35 and 28.37, Florida Statutes. The Fine and Forfeiture fund accounts for court-related activities that are funded by the collection of charges for services, fines and forfeitures. In the event the collection of such fees does not cover expenditures of the fund, the State will fund the difference up to the annual budget authority. Revenue in this fund is restricted and is to be used exclusively for funding court-related operations and, therefore, is reported as a special revenue fund. Public Records Modernization Fund

This special revenue fund accounts for service charges paid to the Clerk & Comptroller, for recording instruments in the official records, which are used exclusively for equipment, personnel training, and technical assistance in modernizing the official records system, as mandated by Section 28.24(12)(d), Florida Statutes. The Public Records Modernization fund is funded by a portion of recording fees. Since Revision 7 of Article V, Florida Constitution, went into effect on July 1, 2004, an additional amount is collected pursuant to Section 28.24(12)(e), Florida Statutes, and is used exclusively for funding court-related technology needs. In addition, Section 28.37(5), Florida Statutes, mandates that 10% of all court-related fines collected by the Clerk & Comptroller shall be deposited into the Clerk & Comptroller’s Public Records Modernization Trust Fund and used exclusively for additional court-related operational needs and program enhancements.



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Records Modernization Article V Fund

This special revenue fund was established to account for the additional amounts collected pursuant to Section 28.24(12)(e), Florida Statutes, which is used exclusively for funding court-related technology needs. Transfers from the general fund to the Article V fund occur when expenditures in the Article V fund exceed revenues. Nonmajor Funds – Governmental In previous fiscal years, The Clerk & Comptroller had the Child Support Incentive Fund in addition to the Foreclosure Surplus Fee Fund. However, during fiscal year 2016 the Child Support Incentive Fund was closed with all remaining balances being transferred to the General Fund. Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Proprietary Fund Proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services, and from producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Internal Service Fund This fund is used to account for the health insurance services provided to departments of the Clerk & Comptroller on a cost reimbursement basis. The operating revenues of the Clerk & Comptroller’s internal service fund are charges for services to other funds. Operating expenses of this fund include claims payments and other contracted services. Transfers from the general fund to the internal service fund occur when expenditures in the internal service fund exceed revenues. Fiduciary Funds Agency Funds These funds are used to account for assets held by the Clerk & Comptroller in an agency capacity for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting.



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Basis of Accounting The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenue is recognized when susceptible to accrual (i.e., when it becomes measurable and available to finance liabilities of the current fiscal year). For this purpose, the Clerk & Comptroller considers revenues to be available if they are collected within sixty days of the end of the current period. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, funds must be expended for the specific purpose or project before any amounts will be paid to the Clerk & Comptroller; therefore, revenue is recognized based upon the expenditures incurred. Grant revenue is recorded in this manner. In the other, funds are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the “susceptible to accrual” criteria are met. Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period. The general operations of the Clerk & Comptroller are funded principally by fees from third parties and appropriations from the Board. The appropriations from the Board are presented in the Clerk & Comptroller’s financial statements as transfers in. Florida Statutes provide that, in those years when there exists an excess of revenues and other financing sources over expenditures, other uses, and encumbrances held by the Clerk & Comptroller at fiscal year-end, such excess is to be distributed to the Board immediately following the fiscal year during which other revenues were recognized. The amount of such excess appropriations at the end of a fiscal year is recorded as a liability and as other financing use in the accompanying financial statements. Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of the Board rather than in the governmental funds of the Clerk & Comptroller.

(c) Cash and Cash Equivalents

Cash balances are pooled for investment purposes, with the exception of some minor balances. Interest earned from pooled cash is allocated to the respective funds based on each fund’s average equity in the pooled fund. For purposes of the statement of cash flows, the Clerk & Comptroller considers highly liquid investments with a maturity of three months or less when purchased to be cash and cash equivalents.



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(1) Summary of Significant Accounting Policies (Continued)

(c) Cash and Cash Equivalents (Continued) The Clerk & Comptroller participates in Florida PRIME, the local government investment pool of the Florida State Board of Administration (SBA), which represents a 2a-7 like pool. A “2a-7 like” pool is an external investment pool that operates in conformity with the Securities and Exchange Commission’s (SEC) Rule 2a-7 as promulgated under the Investment Company Act of 1940, as amended. Rule 2a-7 permits money market funds to use amortized cost to maintain a constant net asset value (“NAV”) of $1.00 per share, provided that such funds meet certain conditions. Accordingly, The Clerk & Comptroller’s investment in the Florida PRIME is reported at the account balance, which is considered fair value.

(d) Fund Balances and Spending Policy The components of the Clerk & Comptroller’s fund balances are classified as follows: Non-spendable Fund Balance Amounts that are not in spendable form (such as inventory and prepaid items), or are legally or contractually required to be maintained intact. Spendable Fund Balance Restricted Fund Balance – Amounts that can be used only for the specific purposes stipulated by (a) external resource providers such as creditors, grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Assigned Fund Balance – Includes spendable fund balance amounts established by the Clerk & Comptroller, or by the Clerk & Comptroller’s designee that are intended to be used for specific purposes that are considered neither restricted or committed. The Clerk & Comptroller has implemented fund balance and spending policies to clearly define the process for tracking the various classifications of fund balance. The policy states that when a general fund expenditure is incurred and where restricted, assigned, or unassigned amounts are available to be used, the Clerk & Comptroller will first use restricted amounts, then committed amounts, then assigned amounts, and finally unassigned amounts. All other funds in which an expenditure is incurred and where restricted, committed, assigned, or unassigned amounts are available to be used, the Clerk & Comptroller will first use unassigned amounts, then assigned amounts, then committed amounts, and finally restricted amounts.



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(1) Summary of Significant Accounting Policies (Continued) (e) Compensated Absences

The Clerk & Comptroller’s employees accumulate annual leave based on years of continuous service. Upon termination of employment, employees can receive payment for accumulated leave time, if they meet certain criteria. Payments for accumulated leave time are included in operating costs when the payments are made to employees. The Clerk & Comptroller does not, and is not legally required to accumulate expendable financial resources for those obligations that have not matured. Accordingly, the liability for compensated absences is not reported in the governmental funds, but rather is reported in the government-wide financial statements of the County.

(f) Use of Estimates The preparation of the financial statements in accordance with U.S. GAAP requires management of the Clerk & Comptroller to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

(g) Reclassifications Certain 2015 amounts have been reclassified to conform to the 2016 financial statement presentation.

(h) New Accounting Pronouncement The Clerk & Comptroller adopted GASB Statement No. 72, Fair Value Measurement and Application. The objective of GASB Statement No. 72 is to address issues related to accounting and financial reporting of fair value measurements. GASB Statement No. 72 also provides direction with regard to applying fair value to investments as well as disclosures related to all fair value measurements.



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(2) Budgetary Process The portion of the annual operating budget of the Clerk & Comptroller that is funded through an appropriation from the Board is submitted to the Board for approval. Consequently, funding for the operations of the Clerk & Comptroller is provided from general revenues of the Board and is supplemented by fees charged by the Clerk & Comptroller pursuant to Florida Statutes. Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or before October 1 and submitted to the Florida Clerks of Court Operations Corporation (the Corporation). The Corporation shall complete its review and adjustments to the various clerks’ budget requests and make its recommendations to the Legislature and Supreme Court by December 1 each year. The budget for the general fund, except for the court facilities revenues and expenditures, which are not budgeted, are prepared in accordance with GAAP. The budget for special revenue funds, except for the child support incentive and foreclosure surplus fee funds, which are not budgeted, are prepared in accordance with GAAP. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Clerk & Comptroller’s appropriation funded by the Board must be approved by the Board, and any subsequent amendments of the court-related budget must be approved by the Corporation. Expenditures may not legally exceed appropriations at the fund level. Budgetary control is maintained at the fund level. Budgetary changes within major object expenditure categories are made at the discretion of the Clerk & Comptroller. The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all supplemental appropriations and other legally authorized changes applicable to the fiscal year, whenever legally authorized.

(3) Cash and Cash Equivalents At September 30, 2016, the carrying value of the Clerk & Comptroller’s cash and cash equivalents was as follows:

Carrying CreditValue Rating Maturities

Cash and cash equivalents:Cash on hand 21,550$ N/A N/ADemand Deposits 14,220,791 N/A N/AMoney Market Fund 7,906,075 N/A N/AFlorida PRIME 8,197,195 AAAm 44 days

Total cash and cash equivalents 30,345,611$

Type

Such amounts are reported as $7,707,741, $5,319,752, and $17,318,118 in the governmental funds, proprietary fund, and agency fund, respectively.



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(a) Fair Value Measurement As required by GASB Statement No. 72, Fair Value Measurement and application, the Clerk & Comptroller categorizes its assets and liabilities carried at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset. Level I inputs are quoted market prices in active markets for identical assets; Level II inputs are significant other observable inputs; Level III inputs are significant unobservable inputs. The Clerk & Comptroller has no assets or liabilities that are carried at fair value that are subject to the leveling disclosures.

(b) Custodial Credit Risk

At September 30, 2016, the Clerk & Comptroller’s deposits were entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss.

(c) Credit Risk The Clerk & Comptroller’s policy is to follow the guidance in Sections 219.075 and 218.415, Florida Statutes. Investment transactions are limited to qualified public depositories or Florida PRIME, an external investment pool administered by the Florida State Board of Administration (SBA).

(d) Interest Rate Risk The Clerk & Comptroller’s investment policy limits investment maturities to less than five years. As of September 30, 2016, the only investments held by the Clerk & Comptroller were Florida PRIME and SunTrust Federated Money Market, which are treated as cash equivalents. These investments are in compliance with the Clerk & Comptroller’s investment policy.

(4) Capital Assets Capital assets used in governmental fund type operations are capitalized by the Board of County Commissioners and reported in the basic financial statements of the County rather than in the governmental funds of the Clerk & Comptroller. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Clerk & Comptroller. Capital assets are valued at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Clerk & Comptroller has custodial responsibility for the capital assets of the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these capital assets is reported in the basic financial statements of the County.



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(5) Long-Term Liabilities The amount of compensated absences recorded as expenditures in the general fund, if any, is the amount accrued during the year that have matured and would normally be liquidated with expendable available financial resources. The amount of compensation earned is reported as net additions. Amounts no longer payable, due to employee termination and amounts used during the year for all employees, are reported as reductions. The Clerk & Comptroller has accrued compensated absences in accordance with GASB Statement No. 16, Accounting for Compensated Absences. This statement requires the compensated absences liability to be measured using pay or salary rates in effect at the balance sheet date. It also requires additional amounts to be accrued for certain salary-related payments associated with the payment of compensated absences. The following is a summary of changes in general long-term liabilities, which are reported in the basic financial statements of the County:

Balance, Balance,October 1, September 30,

2015 Additions Reductions 2016Accrued compensated

absences 756,795$ 149,366$ (163,310)$ 742,851$

Of these liabilities, approximately $156,000 is expected to be paid during the fiscal year ended September 30, 2017. These long-term liabilities are not reported in the financial statements of the Clerk & Comptroller since they have not matured.

(6) Employee Retirement Plan Florida Retirement System: General Information - All of the Clerk & Comptroller’s employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (“Pension Plan”) and the Retiree Health Insurance Subsidy (“HIS Plan”). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (“Investment Plan”) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (“SBA”). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement,



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(6) Employee Retirement Plan (Continued) Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the Web site: www.dms.myflorida.com/workforce_operations/retirement/publications. Pension Plan Plan Description – The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (“DROP”) for eligible employees. Benefits Provided - Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers’ class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service



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(6) Employee Retirement Plan (Continued) credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement. In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants. Contributions – Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows: Regular—7.26% and 7.52%; Senior Management Service—21.43% and 21.77%; Elected Officers’—42.27% and 42.47%; and DROP participants—12.88% and 12.99%. These employer contribution rates include a HIS Plan subsidy of 1.66% for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016. The Clerk & Comptroller’s contributions, excluding employee contributions, to the Pension Plan totaled approximately $957,000 for the fiscal year ended September 30, 2016. Payables to the Pension Plan - At September 30, 2016, The Clerk & Comptroller reported a payable of approximately $105,000 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2016. Such amounts are recorded as accrued liabilities in the accompanying balance sheet – governmental funds. HIS Plan Plan Description – The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement. Benefits Provided – For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare.



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(6) Employee Retirement Plan (Continued) Contributions – The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016 was 1.66%. The County, on behalf of the Clerk & Comptroller, contributed 100% of its statutorily required contributions for the current year. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.

Investment Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report. As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member's accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. Allocations to the investment member's accounts during the 2015-16 fiscal year, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class 6.30%, Special Risk Administrative Support class 7.95%, Special Risk class 14.00%, Senior Management Service class 7.67% and County Elected Officers class 11.34%. For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the



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(6) Employee Retirement Plan (Continued) transferred funds) to be vested for these funds and the earnings on the funds. Non-vested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the County. After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump- sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income. The Clerk & Comptroller’s Investment Plan pension expense totaled approximately $207,000 for the fiscal year ended September 30, 2016. As required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, liabilities related to the Clerk & Comptroller’s participation in the Pension and HIS Plans are reported in the government wide financial statements of the County.

Other Postemployment Benefits The Clerk & Comptroller provides postretirement healthcare benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employment of the Clerk & Comptroller. To be eligible for postretirement healthcare benefits, the retiree must have at least six years of service. For retirees with more than six years of service, but less than 30 years of service, the Clerk & Comptroller provides a health subsidy service credit. The monthly premium for medical insurance is discounted $5.00 per month, per year of service, until the retiree turns 65 years of age. Retirees with 30 or more years of service pay $150 per month to receive postretirement healthcare benefits; however, they are reimbursed by the state subsidy which is included with their retirement check. At 65 years of age, retirees who wish to continue coverage will pay the full monthly premium in effect at that time, and the coverage will be secondary to Medicare. As required by GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postretirement Benefits Other Than Pensions, liabilities and activities related to these benefits are reported in the government-wide financial statements of the County.



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(7) Risk Management The Clerk & Comptroller is exposed to various risks of loss, including, but not limited to, general liability, auto liability, and workers’ compensation. The County has established a risk management program to self-insure claims against the Board and the constitutional officers for various risks. The Clerk & Comptroller participates in the County’s risk management program. The County has general liability insurance with $500,000 retention per claim and $1,000,000 retention per occurrence and $2,000,000 aggregate. Negligence claims in excess of the statutory limits set in Florida Statutes, Section 768.28, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature. Effective October 1, 2011, sovereign immunity limits were increased to $200,000 per claim and $300,000 per occurrence for claims incurred after that date. The County had workers’ compensation insurance with a $650,000 deductible per occurrence for police/fire and a $500,000 deductible per occurrence for all other coverages. Settlements have not exceeded coverage in any of the past three fiscal years. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County. The Clerk & Comptroller has an insurance fund that accounts for a self-insured plan for employee group health, dental, vision, and prescription drugs. As of September 30, 2016, the insurance fund had $5,188,430 of available net assets to fund claims liabilities. The claims liability of $270,622 reported in the Internal Service fund Statement of Net Position at September 30, 2016 is based on the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for unpaid claims costs, including estimates of costs related to incurred but not reported claims, be accrued when insured events occur. Changes in claims liability amounts during the past two fiscal years are as follows:

New ClaimsBalance, and Changes Claim Balance,

October 1, in Estimates Payments September 30,Fiscal year:

403,069$ 3,120,095$ 3,122,140$ 401,024$ 401,024 2,868,024 2,998,426 270,622

20152016 `



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(8) Claims and Contingencies (a) Federal and State Grants

Grant funds received by the Clerk & Comptroller are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Clerk & Comptroller. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Clerk & Comptroller.

(b) Litigation The Clerk & Comptroller is involved as defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. Any judgments against the Clerk & Comptroller would be settled by the Board. In the opinion of the Clerk & Comptroller and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Clerk & Comptroller.


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL– GENERAL FUND (BUDGETARY BASIS)


See accompanying Note to Schedule and accompanying Independent Auditors’ Report. 25

Variance with

Actual Final BudgetBudgeted amounts (Budgetary Positive

Original Final Basis) (Negative)Revenues:

Intergovernmental 372,723$ 372,723$ 503,361$ 130,638$ Charges for services 2,994,479 2,990,296 2,876,535 (113,761) Interest and other earnings 1,667 1,667 32,330 30,663 Miscellaneous 3,132,115 3,132,115 2,976,135 (155,980)

Total revenues 6,500,984 6,496,801 6,388,361 (108,440) Expenditures:

Current:General government (noncourt related) 8,759,921 8,614,132 8,622,562 (8,430)

Total expenditures 8,759,921 8,614,132 8,622,562 (8,430) Excess (deficiency) of

revenues over expenditures (2,258,937) (2,117,331) (2,234,201) (116,870) Other financing sources (uses):

Transfers in:Appropriations from the Board of

County Commissioners 3,398,561 3,398,561 3,398,561 - From other funds - 124,045 124,045 -

Transfers out:To other funds (773,043) (1,288,405) (1,288,405) -

Total other financing sources 2,625,518 2,234,201 2,234,201 - Net change in fund balances 366,581 116,870 - (116,870)

Fund balances at beginning of year - - - - Fund balances at end of year 366,581$ 116,870$ -$ (116,870)$


NOTES TO THE SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND (BUDGETARY BASIS)


See accompanying Independent Auditors’ Report. 26

(1) Reconciliation of Budgeted Revenues and Expenses to Actual

The actual results of operations in the statement of revenues, expenditures, and changes in fund balances – budget to actual – general fund are presented on a budgetary basis. Adjustments to convert the results of operations at the end of the year from the budgetary basis of accounting to the GAAP basis of accounting are as follows:

Total Total FundRevenues Expenditures Balance

General Fund - Budgetary basis 6,388,361$ 8,622,562$ -$ Court Facilities - Nonbudgeted activity 240 - 96,018

Total General Fund 6,388,601$ 8,622,562$ 96,018$


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL – FINE AND FORFEITURE FUND


See accompanying Independent Auditors’ Report.

27

Variance withFinal Budget

Budgeted amounts PositiveOriginal Final Actual (Negative)

Revenues:Intergovernmental 4,430,160$ 4,430,160$ 4,512,217$ 82,057$ Charges for services 5,596,638 5,596,638 5,950,762 354,124 Fines and forfeitures 1,667,002 1,667,002 1,847,443 180,441 Interest and other earnings 287 287 4,348 4,061 Miscellaneous 5,525 5,525 11,447 5,922

Total revenues 11,699,612 11,699,612 12,326,217 626,605 Expenditures:

Current:Court related 11,630,557 11,643,812 11,241,793 402,019 Total expenditures 11,630,557 11,643,812 11,241,793 402,019 Excess (deficiency) of

revenues over expenditures 69,055 55,800 1,084,424 1,028,624 Fund balances at beginning of year 965,612 965,612 965,612 - Fund balances at end of year 1,034,667$ 1,021,412$ 2,050,036$ 1,028,624$


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL – PUBLIC RECORDS MODERNIZATION FUND



28



Revenues:Charges for services 315,411$ 315,411$ 291,425$ (23,986)$ Interest and other earnings 387 387 4,958 4,571

Total revenues 315,798 315,798 296,383 (19,415) Expenditures:

Current:General government (noncourt related) 843,119 843,119 831,351 11,768 Total expenditures 843,119 843,119 831,351 11,768 Excess (deficiency) of

revenues over expenditures (527,321) (527,321) (534,968) (7,647) Fund balances at beginning of year 2,204,061 2,204,061 2,204,061 - Fund balances at end of year 1,676,740$ 1,676,740$ 1,669,093$ (7,647)$


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL – RECORDS MODERNIZATION ARTICLE V FUND



29



Revenues:Charges for services 954,915$ 954,915$ 888,188$ (66,727)$ Interest and other earnings 35 35 (588) (623) Miscellaneous 533,025 533,025 458,503 (74,522)

Total revenues 1,487,975 1,487,975 1,346,103 (141,872) Expenditures:

Current:Court related 2,158,388 2,179,197 2,070,505 108,692

Total expenditures 2,158,388 2,179,197 2,070,505 108,692 Excess (deficiency) of revenues

over expenditures (670,413) (691,222) (724,402) (33,180) Other financing sources (uses):

Transfers in 773,043 724,402 724,402 - Total other financing sources 773,043 724,402 724,402 - Net change in fund balances 102,630 33,180 - (33,180)

Fund balances at beginning of year - - - - Fund balances at end of year 102,630$ 33,180$ -$ (33,180)$

SUPPLEMENTARY INFORMATION


COMBINING BALANCE SHEET GENERAL FUND

SEPTEMBER 30, 2016


30

Total

Assets General Court Facilities General Fund

Cash and cash equivalents 3,353,906$ 96,018$ 3,449,924$ Accounts receivable 374,227 - 374,227 Due from:

Board of County Commissioners 29,396 - 29,396 Other governments 2,597 - 2,597 Constitutional officers 2,394 - 2,394

Prepaid expenditures 16,899 - 16,899 Total assets 3,779,419$ 96,018$ 3,875,437$

Liabilities and Fund BalancesLiabilities:

Vouchers payable 214,698$ -$ 214,698$ Accrued liabilities 183,521 - 183,521 Escrow deposits 3,373,575 - 3,373,575 Other current liabilities 7,625 - 7,625

Total liabilities 3,779,419 - 3,779,419 Fund balances:

Nonspendable - prepaids 16,899 - 16,899 Restricted - 96,018 96,018 Unassigned (16,899) - (16,899)

Total fund balances - 96,018 96,018 Total liabilities and

fund balances 3,779,419$ 96,018$ 3,875,437$

PASCO COUNTY, FLORIDA CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - GENERAL FUND YEAR ENDED SEPTEMBER 30, 2016


31

Court Total

General Facilities General FundRevenues:

Intergovernmental 503,361$ -$ 503,361$ Charges for services 2,876,535 - 2,876,535 Interest and other earnings 32,330 240 32,570 Miscellaneous 2,976,135 - 2,976,135

Total revenues 6,388,361 240 6,388,601 Expenditures:

Current:General government (noncourt related) 8,622,562 - 8,622,562

Total expenditures 8,622,562 - 8,622,562 Excess (deficiency) of -

revenues over expenditures (2,234,201) 240 (2,233,961) Other financing sources (uses):

Transfers in:Appropriations from the Board of

County Commissioners 3,398,561 - 3,398,561 From other funds 124,045 - 124,045

Transfers out:To other funds (1,288,405) - (1,288,405)

Total other financingsources (uses) 2,234,201 - 2,234,201

Net change in fund balances - 240 240 Fund balances at beginning of year - 95,778 95,778 Fund balances at end of year -$ 96,018$ 96,018$


COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS

SEPTEMBER 30, 2016


32

Total

Child NonmajorSupport Foreclosure Governmental Incentive Surplus Fee Funds

AssetsCash and cash equivalents -$ 15,009$ 15,009$

Total assets -$ 15,009$ 15,009$

Liabilities and Fund BalancesTotal liabilities -$ -$ -$ Fund balances:

Restricted - 15,009 15,009 Total fund balances - 15,009 15,009 Total liabilities and

fund balances -$ 15,009$ 15,009$

PASCO COUNTY, FLORIDA CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2016


33

Total

Child NonmajorSupport Foreclosure GovernmentalIncentive Surplus Fee Funds

Revenues:Charges for services -$ 2,688$ 2,688$ Interest and other earnings - 34 34

Total revenues - 2,722 2,722 Other financing sources (uses):

Transfers out:To other funds (124,045) - (124,045)

Total other financingsources (uses) (124,045) - (124,045)

Net change in fund balances (124,045) 2,722 (121,323) Fund balances at beginning of year 124,045 12,287 136,332

Fund balances at end of year -$ 15,009$ 15,009$


STATEMENT OF CHANGES IN ASSETS AND LIABILITIES – AGENCY FUND SEPTEMBER 30, 2016

34


Balance, Balance,

October 1, September 30,2015 Additions Deletions 2016

Assets:Cash and cash equivalents 12,900,893$ 132,467,793$ 128,050,568$ 17,318,118$

Total assets 12,900,893$ 132,467,793$ 128,050,568$ 17,318,118$

Liabilities:

Due to: Board of County Commissioners 245,147$ 3,077,494$ 3,002,670$ 319,971$ Other governments 2,029,318 110,961,962 110,302,806 2,688,474 Others 1,596,559 76,921,713 74,847,205 3,671,067 Deposits 9,029,869 68,056,710 66,447,973 10,638,606

Total liabilities 12,900,893$ 259,017,879$ 254,600,654$ 17,318,118$

35

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government

Auditing Standards

Honorable Paula S. O’Neil, Ph.D., Clerk of Circuit Court and County Comptroller Pasco County, Florida:

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of each major fund, and the aggregate remaining fund information of the Pasco County, Florida Clerk of Circuit Court and County Comptroller, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Clerk of Circuit Court and County Comptroller’s basic financial statements, and have issued our report thereon dated May 15, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements. However, our report was not modified with respect to this matter.

Internal Control over Financial Reporting

In planning and performing our audit of the basic financial statements, we considered Pasco County, Florida Clerk of Circuit Court and County Comptroller’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of Pasco County, Florida Clerk of Circuit Court and County Comptroller’s internal control. Accordingly, we do not express an opinion on the effectiveness of Pasco County, Florida Clerk of Circuit Court and County Comptroller’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.



36

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Pasco County, Florida Clerk of Circuit Court and County Comptroller’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of Pasco County, Florida Clerk of Circuit Court and County Comptroller’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Pasco County, Florida Clerk of Circuit Court and County Comptroller’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


37

Management Letter


We have audited the financial statements of each major fund and the aggregate remaining fund information of the Pasco County, Florida Clerk of Circuit Court and County Comptroller (the Clerk & Comptroller) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Clerk & Comptroller’s basic financial statements, and have issued our report thereon dated May 15, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements. However, our report was not modified with respect to this matter.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have also issued our report dated May 15, 2017 on our consideration of the Clerk & Comptroller’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be considered in conjunction with this management letter.


Prior Audit Findings The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding financial audit report.

Other Matters The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, any recommendations to improve the Clerk & Comptroller’s financial management. In connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.



38

The Rules of the Auditor General, Section 10.556(10)(d), require an examination pursuant to AICPA Professional Standards, AT Section 601 regarding a clerk of the courts’ compliance with Section 61.181, Florida Statutes. Because the Florida Department of Revenue has access to the Pasco County, Florida Clerk of Circuit Court and County Comptroller’s CSE System, and all transactions are processed through State Disbursement Units, this examination was not required.

Official Title and Legal Authority The Rules of the Auditor General, Section 10.554(1)(i)(4), also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. In that regard, the Clerk & Comptroller was established by the Constitution of the State of Florida, Article VIII, Section 1(d). The Clerk & Comptroller does not have any component units.

* * * * * * *

This management letter is intended solely for the information and use of the Clerk & Comptroller, management, the Board of County Commissioners of Pasco County, Florida, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.


39

Independent Accountants’ Report

Honorable Paula S. O’Neil, Ph.D., Clerk of Circuit Court and County Comptroller Pasco County, Florida:

We have examined the Pasco County, Florida Clerk of Circuit Court and County Comptroller’s (the Clerk & Comptroller) compliance with Section 218.415, Florida Statutes, as of September 30, 2016. Management is responsible for the Clerk & Comptroller’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk & Comptroller’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accounts and, accordingly, included examining, on a test basis, evidence about the Clerk & Comptroller’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk & Comptroller’s compliance with specified requirements.

In our opinion, the Clerk & Comptroller complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




40



We have examined the Pasco County, Florida Clerk of Circuit Court and County Comptroller’s (the Clerk & Comptroller) compliance with Sections 28.35 and 28.36, Florida Statutes, as of September 30, 2016. Management is responsible for the Clerk & Comptroller’s compliance with those requirements. Our responsibility is to express an opinion on the Clerk & Comptroller’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accounts and, accordingly, included examining, on a test basis, evidence about the Clerk & Comptroller’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Clerk & Comptroller’s compliance with specified requirements.

In our opinion, the Clerk & Comptroller complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




PASCO COUNTY PROPERTY APPRAISER

Financial Statements

September 30, 2016



Table of Contents

Page

Independent Auditors’ Report 1

Financial Statements:

Balance Sheet – General Fund 3

Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund 4

Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund 5


Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15

Management Letter 17

Independent Accountants’ Report 19


Honorable Mike Wells, Property Appraiser Pasco County, Florida:

Report on the Financial Statements We have audited the accompanying financial statements of the general fund of the Pasco County Property Appraiser as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County Property Appraiser’s basic financial statements as listed in the table of contents.




Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund of the Pasco County Property Appraiser as of September 30, 2016, and the changes in financial position, and the budgetary comparison for the general fund for the year then ended in accordance with U.S. generally accepted accounting principles.



2

Emphasis of Matter

As discussed in note 1(a) to the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Pasco County Property Appraiser as of September 30, 2016, and the changes in its financial position for the year then ended, in conformity with U.S. generally accepted accounting principles. Our opinion is not modified with respect to this matter.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 20, 2017 on our consideration of the Pasco County Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County Property Appraiser’s internal control over financial reporting and compliance.

March 20, 2017 Certified Public Accountants

PASCO COUNTYPROPERTY APPRAISER

Balance Sheet – General Fund

September 30, 2016

Assets

Cash and cash equivalents $ 526,282 Accounts receivable 251

Total assets $ 526,533

Liabilities and Fund Balance

Liabilities:Accounts payable and accrued liabilities $ 77,673 Due to Pasco County Board of County Commissioners 433,786 Due to other taxing districts 15,074

Total liabilities 526,533

Fund balance —

Total liabilities and fund balance $ 526,533

See accompanying notes to financial statements.

3


Statement of Revenues, Expenditures, and Changes inFund Balance – General Fund


Revenues:Commissions and fees:

Pasco County Board of County Commissioners $ 4,505,771 Other taxing districts:

Southwest Florida Water Management District 94,547 West Pasco Mosquito Control District 62,032

Total commissions and fees 4,662,350

Interest 4,592 Other 12,348

Total revenues 4,679,290

Expenditures:General government:

Personal services 3,785,842 Operating 384,393 Capital outlay 60,195

Total expenditures 4,230,430

Excess of revenues over expenditures 448,860

Other financing uses:Transfers out:

Distribution of excess commissions and fees to the Pasco CountyBoard of County Commissioners (433,786)

Distribution of excess commissions and fees to other taxing districts (15,074)

Total other financing uses (448,860)

Excess of revenues over expenditures and other financing uses —

Fund balance – beginning of year —

Fund balance – end of year $ —


4


Statement of Revenues, Expenditures, and Changesin Fund Balance – Budget and Actual – General Fund


Budget Variance withOriginal Final Actual final budget

Revenues:Commissions and fees:

Pasco County Board of CountyCommissioners $ 4,505,453 4,505,771 4,505,771 —

Other taxing districts:Southwest Florida Water

Management District 94,541 94,547 94,547 — West Pasco Mosquito Control

District 62,027 62,032 62,032 —

Total commissions and fees 4,662,021 4,662,350 4,662,350 —

Interest — — 4,592 4,592 Other — — 12,348 12,348

Total revenues 4,662,021 4,662,350 4,679,290 16,940


Personal services 3,928,028 3,928,357 3,785,842 142,515 Operating 482,834 482,834 384,393 98,441 Capital outlay 70,566 70,566 60,195 10,371

Contingency 180,593 180,593 — 180,593


Excess of revenues overexpenditures — — 448,860 448,860

Other financing uses:Transfers out:

Distribution of excess commissionsand fees to the Pasco CountyBoard of County Commissioners — — (433,786) (433,786)

Distribution of excess commissionsand fees to other taxing districts — — (15,074) (15,074)

Total other financing uses — — (448,860) (448,860)

Excess of revenues overexpenditures and otherfinancing uses $ — — — —




5


Notes to Financial Statements September 30, 2016

6 (Continued)

(1) Summary of Significant Accounting Policies (a) Reporting Entity

The Pasco County Property Appraiser (Property Appraiser) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 195.087, Florida Statutes, the Property Appraiser’s budget is submitted to the Florida Department of Revenue for approval, and a copy is forwarded to the Pasco County Board of County Commissioners (the Board).

The financial statements presented include the general fund of the Property Appraiser’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits.

Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires the Property Appraiser to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Property Appraiser as of September 30, 2016 and the changes in its financial position for the year then ended in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with accounting principles generally accepted in the United States of America.

The financial activities of the Property Appraiser, as a constitutional officer, are included in the Pasco County Comprehensive Annual Financial Report.

(b) Measurement Focus, Basis of Accounting, and Basis of Presentation Fund financial statements report detailed information about the Property Appraiser. The focus of governmental fund financial statements is on major funds rather than reporting funds by type.

Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included in the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Property Appraiser’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Property Appraiser.

The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Property Appraiser considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured.



7 (Continued)

Substantially, all of the Property Appraiser’s revenue is received from taxing authorities. These moneys are unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt; earlier if the “susceptible to accrual” criteria are met.

Interest income and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period.

Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year during which the other revenues were recognized.

Florida Statutes further provide that the excess of revenues over expenditures held by the Property Appraiser be distributed to each governmental agency in the same proportion as the fees paid by each governmental agency bear to total fee revenues. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements.

Capital outlays expended in the general fund operations are capitalized in the basic financial statements of the Board rather than in governmental funds of the Property Appraiser.

(c) Cash and Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash equivalents of $400,313 at September 30, 2016 consist of a money market account.

(d) Compensated Absences All full-time employees of the Property Appraiser are entitled to paid time off (PTO) and major medical leave. The employees are generally allowed to accumulate PTO with an unlimited amount of hours that can be carried into the next fiscal year. Major medical leave is accrued at a maximum of 80 hours per year and is the maximum amount that can be used during the year. PTO and major medical leave payments are included in personal services expenditures when the payments are made to the employees. The liability for compensated absences is not reported in the general fund, but rather is reported in the basic financial statements of the Board.

(e) Use of Estimates The preparation of the financial statements requires management of the Property Appraiser to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

(f) Accounting Standards During the fiscal year ended September 30, 2016, the Property Appraiser adopted GASB Statement No 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issues related to fair value measurements.



8 (Continued)

(2) Budgetary Process Section 195.087, Florida Statutes, governs the preparation, adoption, and administration of the Property Appraiser’s annual budget. The Property Appraiser prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. Any subsequent amendments to the total budget must be approved by the Florida Department of Revenue. The budget for the general fund is prepared on a basis consistent with U.S. generally accepted accounting principles. The annual budget serves as the legal authorization for expenditures. Budgetary control is maintained at the major object expenditure level. Expenditures may not legally exceed appropriations at the fund level and appropriations lapse at year-end. Budgetary changes within major object expenditure categories are made at the discretion of the Property Appraiser.

The original budget is the first complete appropriated budget. The final budget is the original budget adjusted by all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized.

(3) Cash and Cash Equivalents At September 30, 2016, the carrying value of the Property Appraiser’s cash and cash equivalents was as follows:

CarryingType value

Cash on hand $ 105 Demand deposits 125,864 Money market account 400,313

Total cash and cash equivalents $ 526,282

(a) Fair Value Measurement As required by Governmental Accounting Standards Board Statement No. 72, Fair Value Measurements and Application, the Property Appraiser categorizes its assets and liabilities at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant observable inputs; Level 3 input are significant unobservable inputs.

The Property Appraiser has no assets or liabilities that are carried at fair value that are subject to the leveling disclosures.

(b) Custodial Credit Risk At September 30, 2016, the Property Appraiser’s deposits were entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public



9 (Continued)

depository), all participating institutions are obligated to reimburse the governmental entity for the loss.

(c) Interest Rate Risk The Property Appraiser has no specific investment policy regarding interest rate risk.

(d) Credit Risk The Property Appraiser has no written investment policy and therefore follows the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Property Appraiser to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and direct obligations of the U.S. Treasury. Additionally, Florida Statutes allow local governments to place public funds in interest bearing time deposits or savings accounts in qualified public depositories that participate in a collateral pool under the Florida Security for Public Deposits Act (Section 280.02 Florida Statutes). The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost.

(4) Capital Assets Capital assets used by the Property Appraiser are reported in the basic financial statements of the Board rather than in the governmental funds of the Property Appraiser. Upon acquisition, such assets are recorded as expenditures in the general fund of the Property Appraiser and are capitalized in the basic financial statements of the Board. Capital assets are valued at historical cost, or estimated historical cost, if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Property Appraiser maintains custodial responsibility for the capital assets used by the office. The office space used in the Property Appraiser’s operations is provided at no cost by the Board. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these capital assets is recorded in the basic financial statements of the Board.

(5) Long-Term Liabilities The following is a summary of changes in general long-term liabilities, which are reported in the basic financial statements of the Board:

October 1, September 30,2015 Additions Retirements 2016

Accrued compensatedabsences $ 491,239 269,385 (308,223) 452,401

Of these liabilities, approximately $279,000 is expected to be paid during the fiscal year ending September 30, 2017. These long-term liabilities are not reported in the financial statements of the Property Appraiser since they have not matured.



10 (Continued)

(6) Related Party Transactions During the year ended September 30, 2016, the Board provided funding for the Property Appraiser that amounted to $4,505,771. At September 30, 2016, the Property Appraiser had a payable due to the Board of $433,786 related to the distribution of excess appropriations.

(7) Retirement Plans Florida Retirement System General Information

All of the Property Appraiser’s employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature.

The State of Florida annually issues a publicly available financial report that includes financial statements and required supplementary information for the FRS. The latest available report may be obtained by writing to the State of Florida Division of Retirement, Department of Management Services, P.O. Box 9000, Tallahassee, Florida 32315-9000, or from the Web site:

http://www.dms.myflorida.com/workforce_operations/retirement/publications

(a) Pension Plan (i) Plan Description

The Pension Plan is a cost-sharing multiple-employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees.

(ii) Benefits Provided

Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of





11 (Continued)

their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service.

For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and increasing normal retirement to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers’ class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement.

In addition to the above benefits, the DROP program allows eligible members to defer receipt of monthly retirement benefit payments while continuing employment with a FRS employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the FRS Trust Fund and accrue interest. There are no required contributions by DROP participants.

(iii) Contributions

Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows: Regular – 7.26% and 7.52%; Special Risk Administrative Support –32.95% and 28.06%; Special Risk – 22.04% and 22.57%; Senior Management Service –21.43% and 21.77%;



12 (Continued)

Elected Officers’ – 42.27% and 42.47%; and DROP participants – 12.88% and 12.99%. These employer contribution rates include a HIS Plan subsidy of 1.66% for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016.

The Property Appraiser’s contributions, excluding employee contributions, to the Pension Plan totaled approximately $288,000 for the fiscal year ended September 30, 2016.

(iv) Payables to the Pension Plan

At September 30, 2016, the Property Appraiser reported a payable in the amount of $5,366 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2016. Such amounts are recorded as accounts payable and accrued liabilities in the accompanying balance sheet – general fund.

(b) HIS Plan (i) Plan Description

The HIS Plan is a cost-sharing multiple-employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of State-administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement.


For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include medicare.

(iii) Contributions

The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution for both the period October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016 was 1.66%. The Property Appraiser contributed 100% of his statutorily required contributions for the current year. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.

The Board makes contributions to the HIS Plan on behalf of the Property Appraiser.



13 (Continued)

(c) Investment Plan The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report.

As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. Allocations to the investment member’s accounts during the 2015-16 fiscal year, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class – 6.30%, Special Risk Administrative Support class – 7.95%, Special Risk class – 14%, Senior Management Service class – 7.67% and County Elected Officers class – 11.34%.

For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial.

After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided as follows; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.

The Property Appraiser’s Investment Plan pension expense totaled approximately $26,000 for the fiscal year ended September 30, 2016.



14

As required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, liabilities related to the Property Appraiser’s participation in the Pension and HIS Plans are reported in the government wide financial statements of the Board.

(8) Other Postemployment Benefits The Property Appraiser provides postretirement healthcare benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employ of the Property Appraiser. To be eligible for postretirement healthcare benefits, the retiree must have at least six years of service. Retirees with more than six years of service, but less than 30 years of service pay 100% of the premium cost to receive postretirement healthcare benefits. Retirees with 30 or more years of service do not pay a premium to receive postretirement healthcare benefits; however, they surrender their monthly state subsidy of $150 per month. As required by GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, liabilities and activities related to these benefits are reported in the government-wide financial statements of the Board.

(9) Risk Management Pasco County (the County) is exposed to various risks of loss, including but not limited to general liability, auto liability, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risks of uninsured loss through an internal service fund. The Property Appraiser participates in the County’s risk management program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Board.

The County has general liability insurance with $500,000 retention per claim with $1,000,000 retention limit per occurrence and $2,000,000 aggregate. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence, can only be recovered through an act of the State Legislature. Effective October 1, 2011, sovereign immunity limits were increased to $200,000 per claim and $300,000 per occurrence for claims incurred after that date. The County has workers’ compensation insurance with a $650,000 deductible per occurrence for police/fire, and a $500,000 deductible per occurrence for all others. Settlements have not exceeded coverage in any of the past three fiscal years. All liabilities associated with these self–insured risks are reported in the basic financial statements of the County.

(10) Litigation The Property Appraiser is involved as defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations, primarily relating to challenges on property value assessments. Any judgments against the Property Appraiser would be settled by the Board. In the opinion of the Property Appraiser and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Property Appraiser.

15

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the general fund of the Pasco County Property Appraiser, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County Property Appraiser’s basic financial statements, and have issued our report thereon dated March 20, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified with respect to this matter.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Pasco County Property Appraiser’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Pasco County Property Appraiser’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Pasco County Property Appraiser’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described below, we identified certain deficiencies in internal control that we consider to be material weaknesses.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described below to be a material weakness.

PA-GAS-2016-001 Review of Journal Entries

During the audit we noted that there is no formal review and approval process for journal entries. Certain budgetary and payroll entries were recorded incorrectly during the year. Additionally, the risk of management override of controls through topside journal entries should be considered by management. Review and approval of journal entries by someone other than the preparer should be implemented and documentation should be maintained to evidence the appropriateness of amounts recorded.



16

Management Response

Management will review the existing journal entry processes and determine controls needed to identify or prevent potential misstatements.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Compliance and Other Matters As part of obtaining reasonable assurance about whether the Pasco County Property Appraiser’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Property Appraiser’s Response to Finding The Property Appraiser’s response to the finding identified in our audit is described previously. The Property Appraiser's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Pasco County Property Appraiser’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County Property Appraiser’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


17

Management Letter


We have audited the financial statements of the general fund of the Pasco County Property Appraiser, as of and for the year ended September 30, 2016, and have issued our report thereon dated March 20, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements however, our report was not modified with respect to this matter.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have also issued our report dated March 20, 2017 on our consideration of the Pasco County Property Appraiser’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter.

Prior Audit Findings The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. The status of recommendations made in the preceding annual financial audit are included below.

PA-ML-2015-001 Reconciliation of Cash Accounts

During our audit we noted that the Property Appraiser’s cash accounts were not being reconciled to the bank statements throughout the fiscal year. Timely reconciliations of cash accounts is critical to an effective system of internal control. We recommend the Property Appraiser review its existing processes to determine whether they can be enhanced to allow for reconciliations to be performed on a timely basis throughout the fiscal year.

2016 Status

Partially corrected. Management prepared reconciliations of cash accounts during the fiscal year, however due to a change in personnel the September 2016 reconciliation was not prepared correctly.

Management Response

Management will prepare accurate reconciliations of cash accounts on a timely basis throughout the fiscal year.



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Other Matters The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, any recommendations to improve the Pasco County Property Appraiser’s financial management. In connection with our audit, there were no additional matters to be reported.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Official Title and Legal Authority The Rules of the Auditor General, Section 10.554(1)(i)(4), require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. In that regard, the Pasco County Property Appraiser was established by the Constitution of the State of Florida, Article VIII, Section 1(d). The Pasco County Property Appraiser does not have any component units.

Purpose of this Letter This management letter is intended solely for the information and use of the Pasco County Property Appraiser, management, the Board of County Commissioners of Pasco County, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.


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We have examined the Pasco County Property Appraiser’s compliance with Section 218.415, Florida Statutes as of September 30, 2016. Management is responsible for the Pasco County Property Appraiser’s compliance with those requirements. Our responsibility is to express an opinion on the Pasco County Property Appraiser’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Pasco County Property Appraiser’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Pasco County Property Appraiser’s compliance with specified requirements.

In our opinion, the Pasco County Property Appraiser complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




PASCO COUNTY, FLORIDA SHERIFF


September 30, 2016



Table of Contents

Page(s)

Independent Auditors’ Report 1–2




Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – General Fund 5

Statement of Net Position – Internal Service Fund 6

Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund 7

Statement of Cash Flows – Internal Service Fund 8

Balance Sheet – Agency Funds 9

Notes to Financial Statements 10–23

Combining Information:

Combining Balance Sheet – General Fund 24

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund 25

Nonmajor Special Revenue Funds 26–27

Combining Balance Sheet – Nonmajor Special Revenue Funds 28–31

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds 32–35

Fiduciary Funds 36

Combining Balance Sheet – Agency Funds 37

Combining Statement of Changes in Assets and Liabilities – Agency Funds 38

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 39–41


Table of Contents

Page(s)

Management Letter 42–43



Honorable Chris Nocco, Sheriff Pasco County, Florida:

We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the Pasco County, Florida Sheriff as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Sheriff’s basic financial statements as listed in the table of contents.







Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Pasco County, Florida Sheriff as of September 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary comparison for the general fund for the year then ended, in conformity with U.S. generally accepted accounting principles.



2

Emphasis of Matter

As discussed in note 1 (a) to the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Pasco County, Florida Sheriff as of September 30, 2016, and the changes in its financial position for the year then ended, in conformity with U.S. generally accepted accounting principles. Our opinion is not modified with respect to this matter.

Other Matters

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Pasco County, Florida Sheriff’s basic financial statements. The combining information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The combining information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated August 7, 2017 on our consideration of the Pasco County, Florida Sheriff’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Sheriff’s internal control over financial reporting and compliance.


/s/ KPMG LLP


Balance Sheet – Governmental Funds

September 30, 2016

NonmajorChild special

Protective revenueAssets General Services Commissary funds Total

Cash $ 50 — 3,654,465 832,601 4,487,116Equity in pooled cash 7,424,629 618,968 — 1,418,396 9,461,993Accounts receivable 38,092 — 85,860 — 123,952Due from Pasco County, Florida Board of

County Commissioners 446,255 — — 238,991 685,246Due from other funds 478,307 — — 29,683 507,990Due from other governments 522,620 2,082 — 161,803 686,505Inventory 187,350 — 462,721 — 650,071

Total assets 9,097,303 621,050 4,203,046 2,681,474 16,602,873

Liabilities and Fund Balances

Liabilities:Accounts payable 3,470,101 58,559 186,732 128,524 3,843,916Accrued salaries and benefits 4,799,835 109,247 8,243 28,434 4,945,759Due to other funds 28,051 — 95,003 384,200 507,254Due to Pasco County, Florida Board of

County Commissioners 574,703 — — 337 575,040Due to other governments 468 — 553 3,876 4,897Unearned revenue — 472,198 — 63,405 535,603

Total liabilities 8,873,158 640,004 290,531 608,776 10,412,469

Fund balances:Nonspendable 187,350 — 462,721 — 650,071Restricted — (18,954) 3,449,794 2,072,698 5,503,538Assigned 36,795 — — — 36,795

Total fund balances (deficit) 224,145 (18,954) 3,912,515 2,072,698 6,190,404

Total liabilities and fund balances $ 9,097,303 621,050 4,203,046 2,681,474 16,602,873


3


Statement of Revenues, Expenditures, and Changesin Fund Balances – Governmental Funds


NonmajorChild special

Protective revenueGeneral Services Commissary funds Total

Revenues:Intergovernmental revenue $ 122,391 6,738,067 — 1,398,379 8,258,837Fines and forfeitures — — — 480,721 480,721Charges for services 3,919,033 — 2,294,782 — 6,213,815Interest revenue 26 8 576 440 1,050Miscellaneous revenue 361,871 (127) 205,734 309,986 877,464

Total revenues 4,403,321 6,737,948 2,501,092 2,189,526 15,831,887


Personal services 3,630,585 — — — 3,630,585Operating 171,188 — — — 171,188

Total general government 3,801,773 — — — 3,801,773

Public safety:Personal services 81,904,814 5,608,160 562,474 1,198,364 89,273,812Operating 20,539,244 932,420 1,406,380 678,515 23,556,559

Total public safety 102,444,058 6,540,580 1,968,854 1,876,879 112,830,371

Capital outlay 3,451,611 218,168 — 297,272 3,967,051

Total expenditures 109,697,442 6,758,748 1,968,854 2,174,151 120,599,195

Excess (deficiency) of revenuesover expenditures (105,294,121) (20,800) 532,238 15,375 (104,767,308)


Pasco County, Florida Board of CountyCommissioners appropriations 104,284,770 — — — 104,284,770

Pasco County, Florida Board of CountyCommissioners Interlocal Agreement 1,956,554 — — — 1,956,554

Transfers out:Distribution of excess appropriations to

the Pasco County, Florida Board ofCounty Commissioners (474,099) — — — (474,099)

Distribution of excess from interlocalagreement to Pasco County, FloridaBoard of County Commissioners (11,354) — — — (11,354)

Internal service fund (501,663) — — — (501,663)

Total other financing sources 105,254,208 — — — 105,254,208

Excess (deficiency) of revenuesand other financing sourcesover expenditures (39,913) (20,800) 532,238 15,375 486,900

Fund balances, beginning of year 264,058 1,846 3,377,545 2,057,323 5,700,772Increase in reserve for inventory — — 2,732 — 2,732

Fund balances (deficit), end of year $ 224,145 (18,954) 3,912,515 2,072,698 6,190,404


4


Statement of Revenues, Expenditures, and Changesin Fund Balances – Budget and Actual (Budgetary Basis) – General Fund


Budgetary VarianceBudget basis with final

Original Final actual budget

Revenues:Charges for services $ — — 2,665,706 2,665,706 Miscellaneous revenue — — 361,871 361,871

Total revenues — — 3,027,577 3,027,577


Personal services 3,463,440 3,463,440 3,630,585 (167,145) Operating 204,650 204,650 171,188 33,462

Public safety:Personal services 78,174,510 78,174,510 80,552,301 (2,377,791) Operating 20,857,462 20,857,462 20,449,998 407,464

Capital outlay 1,584,708 1,584,708 3,451,611 (1,866,903)

Total expenditures 104,284,770 104,284,770 108,255,683 (3,970,913)

Deficiency of revenues overexpenditures (104,284,770) (104,284,770) (105,228,106) (943,336)


Pasco County, Florida Board of CountyCommissioners appropriations 104,284,770 104,284,770 104,284,770 —

Pasco County, Florida Board of CountyCommissioners Interposal Agreement — — 1,956,554 1,956,554


the Pasco County, Florida Board ofCounty Commissioners — — (474,099) (474,099)

Distribution of excess from interlocalagreement to Pasco County, FloridaBoard of County Commissioners — — (11,354) (11,354)

Internal service fund — — (501,663) (501,663)

Total other financing sources 104,284,770 104,284,770 105,254,208 969,438

Excess of revenuesand other financing sourcesover expenditures — — 26,102 26,102

Fund balance, beginning of year — — 161,248 161,248

Fund balance, end of year $ — — 187,350 187,350


5


Statement of Net Position – Internal Service Fund

September 30, 2016

Assets

Cash $ 4,770,907 Equity in pooled cash 501,779 Accounts receivable 36,034

Total assets $ 5,308,720

Liabilities and Net Position

Liabilities:Accounts payable $ 847,339 Claims payable 877,000 Advance from Pasco County Board of County Commissioners 1,534,000

Total liabilities 3,258,339

Net Position:Unrestricted 2,050,381

Total liabilities and net position $ 5,308,720


6


Statement of Revenues, Expenses, and Changes in Net Position – Internal Service Fund


Operating revenue:Charges for services $ 11,648,451


Operating expenses:Health insurance 8,795,526Current charges/stop loss fees 1,961,435

Total expenses 10,756,961

Operating income 891,490

Nonoperating revenues – interest income 716

Total nonoperating revenues 716

Transfers in – general fund 501,663

Change in net position 1,393,869

Net position – beginning of year 656,512

Net position – end of year $ 2,050,381


7


Statement of Cash Flows – Internal Service Fund


Cash flows from operating activities:Cash received from other funds for services provided $ 9,377,157 Cash payments for claims and claims related services (7,071,187) Cash payments for administrative services and supplies (1,961,437)

Net cash provided by operating activities 344,533

Cash flows from noncapital financing activities:Transfer from other funds 501,663

Net cash provided by noncapital financing activities 501,663

Cash flows from investing activity:Interest earned 716

Net cash provided by investing activities 716

Net increase in cash 846,912

Cash – Beginning of year 4,425,774

Cash – End of year $ 5,272,686

Reconciliation of operating income to net cash provided by operating activities:Operating income $ 891,490 Adjustments to reconcile operating income to net cash provided by operating activities:

Increase (decrease) in accounts receivable (36,034) Increase (decrease) in due from other funds 617,156 Increase (decrease) in accounts payable (1,009,369) Increase (decrease) in claims payable (14,000) Increase (decrease) in due to other funds (104,710)

Net cash provided by operating activities $ 344,533


8


Balance Sheet – Agency Funds

September 30, 2016

Assets

Cash $ 61,485Equity in pooled cash 581,799

Total assets $ 643,284

LiabilitiesVouchers payable $ 536Due to other funds 736Due to individuals 642,012

Total liabilities $ 643,284


9

PASCO COUNTY, FLORIDA SHERIFF Notes to Financial Statements

September 30, 2016

10 (Continued)


The Pasco County, Florida Sheriff (the Sheriff) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 129, Florida Statutes, the Sheriff’s budget is submitted to the Pasco County, Florida Board of County Commissioners (Board) for approval.

The Sheriff is the chief law enforcement officer of Pasco County, Florida (the County) and is responsible for operating the County’s corrections facilities. The financial statements include the general fund, special revenue funds, internal service fund, and agency funds of the Sheriff’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits.

Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires the Sheriff to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Sheriff as of September 30, 2016, and the changes in its financial position for the year then ended in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with U.S. generally accepted accounting principles (GAAP).

As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Sheriff, as a constitutional officer, are included in the Pasco County, Florida Comprehensive Annual Financial Report.

Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Sheriff is required to refund to the Board all excess appropriations annually; therefore, no unappropriated fund balance is carried forward.

(b) Measurement Focus, Basis of Accounting, and Basis of Presentation

Fund financial statements report detailed information about the Sheriff. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column.

(i) Governmental Funds

Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Sheriff reports the following major governmental funds:

General Fund – The general fund is used to account for the general operations of the Sheriff and includes all transactions, which are not accounted for in another fund.


September 30, 2016

11 (Continued)

Child Protective Services Fund – This fund accounts for funding provided by the Department of Children and Family Services necessary for the Sheriff to assume responsibility for protective services. Funds can only be expended in accordance with the agreement with the state.

Commissary Fund – This fund accounts for the receipts and disbursement of the Sheriff’s Commissary activity.

The Sheriff also has 27 nonmajor special revenue funds, the majority of which account for various individual grants.

The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenue is recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, with the exception of grants, the Sheriff considers revenues to be available if they are collected within 60 days of the end of the current period. Grant revenues are considered available if collected within one year of the current period. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured.

Substantially, all of the Sheriff’s funding is appropriated by the Board. In applying the susceptible to accrual concept to intergovernmental revenue, there are essentially two types of revenue. In one, moneys must be expended on the specific purpose or project before any amounts will be paid to the Sheriff; therefore, revenue is recognized based upon the expenditures incurred. Grant revenue is recorded in this manner. In the other, moneys are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt, or earlier, if the “susceptible to accrual” criteria are met.

Charges for services, interest income, and other revenue are recognized as they are earned and become measurable and available to pay liabilities of the current period.

Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as another financing use in the accompanying financial statements.

Capital outlays expended in governmental fund operations are capitalized in the basic financial statements of the County rather than in the governmental funds of the Sheriff.

(ii) Proprietary Fund

Proprietary funds are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.


September 30, 2016

12 (Continued)

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services, and from producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

The Sheriff has one proprietary fund.

Internal Service Fund – This fund is used to account for the health insurance services provided to departments of the Sheriff’s Office on a cost reimbursement basis. The operating revenues of the Sheriff’s internal service fund are charges for services to other funds. Operating expenses of this fund include claims payments and other contracted services.

(iii) Fiduciary Funds

Agency Funds – These funds are used to account for assets held by the Sheriff in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting.

(c) Cash and Equity in Pooled Cash

Cash balances are pooled for investment purposes, with the exception of some special revenue and agency funds. Interest earned from pooled cash is allocated to the respective funds based on each fund’s average equity in the pooled fund.

(d) Unearned Revenue

The Sheriff receives grant awards from various federal and state agencies. These awards are recorded as unearned revenue until amounts have been earned or expended.

(e) Inventory

The general fund maintains inventories of supplies, uniforms, and accessories, which are stated at cost. Inventory items are considered expenditures when they are used (consumption method).

Inventory also consists of materials and supplies used in the inmate commissary major special revenue fund operations, which are stated at cost, determined in accordance with the specific-identification method. The cost is recorded as an expenditure at the time of purchase (purchase method).

Reported inventory, based on physical inventory of supplies on hand at September 30, 2016, does not constitute an available expendable resource and, thus, is reflected in nonspendable fund balance.


September 30, 2016

13 (Continued)

(f) Deficit Fund Balances

The deficit fund balances in the V & N Gang Suppression (6), Pasco HIDTA Task Force and InVEST nonmajor special revenue funds are a result of timing differences between accruing expenses at year-end and requesting reimbursement from the grant agency. Therefore, the Sheriff will fund the deficit through future billings to the granting agency.

(g) Compensated Absences

The Sheriff’s employees accumulate annual leave based on years of continuous service. Upon termination of employment, employees can receive payment for accumulated leave time, if they meet certain criteria. Payments for accumulated leave time are included in operating costs when the payments are made to employees. The liability for compensated absences is not reported in the governmental funds but rather is reported in the basic financial statements of the County.

(h) Advances

During the year ended September 30, 2015, the Board of County Commissioners advanced $1,534,000 to the Sheriff for the purpose of establishing the health insurance internal service fund. Such amounts remain outstanding at September 30, 2016, do not accrue interest and are expected to be repaid with future savings of the fund.

(i) Use of Estimates

The preparation of the financial statements requires management of the Sheriff to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

(j) Fund Balance Classification

The Sheriff follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions (GASB 54). GASB 54 established a fund balance classification hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balances are differentiated between those amounts that are nonspendable and spendable. Further, spendable fund balances are classified as restricted, committed, assigned, or unassigned.

The classifications are as follows:

Nonspendable Fund Balance – Amounts that are not in spendable form (such as inventory and prepaid items), or are legally or contractually required to be maintained intact.

Restricted Fund Balance – Amounts that can be used only for the specific purposes stipulated by (a) external resource providers such as creditors, grantors, contributors, or laws and regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.


September 30, 2016

14 (Continued)

Committed Fund Balance – Amounts that can be used only for the specific purposes determined by a formal action (ordinance or resolution) by the Board of County Commissioners, with formal action occurring prior to fiscal year end. Commitments may be changed or removed only by the Commissioners taking the same formal action (resolution) that imposed the constraint originally.

Assigned Fund Balance – Includes spendable fund balance amounts established by the Sheriff or his designee that are intended to be used for specific purposes that are neither considered restricted or committed.

Unassigned Fund Balance – This is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. Unassigned fund balance may also include the negative balance for any governmental fund, except the General Fund, if expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

At September 30, 2016, the Sheriff has classified its fund balances based on the GASB 54 hierarchy as follows:

Child NonmajorGeneral protective Commissary special

fund fund fund revenue fund Total

Nonspendable – inventory $ 187,350 — 462,721 — 650,071 Restricted – inmate welfare — — 3,449,794 — 3,449,794 Restricted – grants — (18,954) — 2,072,698 2,053,744 Assigned – other 36,795 — — — 36,795

$ 224,145 (18,954) 3,912,515 2,072,698 6,190,404

When both restricted and unrestricted fund balances are available for expenditure, the Sheriff considers available restricted amounts to have been spent first. Further, when assigned or unassigned funds are available for expenditure, the Sheriff considers available assigned amounts to have been spent first. Assigned fund balances can be authorized by management as long as the assignment relates to an authorized budget expenditure.

(k) Accounting Standards

During the fiscal year ended September 30, 2016, the Sheriff adopted GASB Statement No. 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issues related to fair value measurements.


September 30, 2016

15 (Continued)

(2) Budgetary Process Florida Statutes Sections 30.49, 129.021, and 129.03 govern the preparation, adoption, and administration of the Sheriff’s annual budget. The Sheriff prepares a budget for the general fund and submits it to the Board for approval. The budget for the general fund is prepared on a basis that differs from U.S. GAAP. Certain revenues and expenditures related to extra duty activities, and activity under MOU agreements are not budgeted. Any subsequent amendments to the total budget must be approved by the Board. The annual budget serves as the legal authorization for expenditures. Budgetary control is maintained at the major object expenditure level. Expenditures may not legally exceed appropriations at the fund level, and appropriations lapse at year-end. Budgetary changes within major object expenditure categories are made at the discretion of the Sheriff.


Budgets for other funds, while prepared, are not submitted to the Board for approval as they generally are governed by federal or state grant agreements.

The actual results of operations in the statement of revenues, expenditures, and changes in fund balance – budget to actual – general fund are presented on a budgetary basis. Adjustments to convert the results of operations at the end of the year from the budgetary basis of accounting to the GAAP basis of accounting are as follows:

Total Total Fundrevenues expenditures balance

Budgetary basis $ 3,027,577 108,255,683 187,350 Nonbudgetary activity:

Extra Duty Program 1,253,353 1,319,368 36,795 MOU Agreements 122,391 122,391 —

GAAP basis $ 4,403,321 109,697,442 224,145

(3) Cash and Equity in Pooled Cash At September 30, 2016, the carrying value of the Sheriff’s cash and equity in pooled cash was as follows:

Cash on hand $ 50 Demand deposits 19,865,029

Total cash and equity inpooled cash $ 19,865,079


September 30, 2016

16 (Continued)

Such amounts are reported as $13,949,109 in the governmental funds, $5,272,686 in the internal service fund, and $643,284 in the agency funds.

(a) Fair Value Measurement

As required by Governmental Accounting Standards Board Statement No. 72, Fair Value Measurements and Application, the Sheriff categorizes its assets and liabilities carried at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant observable inputs; Level 3 inputs are significant unobservable inputs.

The Sheriff has no assets or liabilities that are carried at fair value that are subject to the leveling disclosures.

(b) Custodial Credit Risk

At September 30, 2016, the Sheriff’s deposits were entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss.

(c) Interest Rate Risk

The Sheriff has no specific investment policy regarding interest rate risk.

(d) Credit Risk

The Sheriff has no written investment policy and therefore follows the guidance in Section 219.075, Florida Statutes regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes authorize the Sheriff to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and direct obligations of the U.S. Treasury. Additionally, Florida statutes allow local governments to place public funds in interest-bearing time deposits or savings accounts in qualified public depositories that participate in a collateral pool under the Florida Security for Public Deposits Act (Section 280.02 Florida Statutes). The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost.

(4) Capital Assets Capital assets used in governmental fund type operations are reported in the basic financial statements of the County rather than in the governmental funds of the Sheriff. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Sheriff and are capitalized in the basic financial statements of the County. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated or confiscated capital assets are valued at their estimated fair value on the date received. The Sheriff maintains custodial and record-keeping responsibility for the capital assets of the office. No depreciation expense has been provided on capital assets in these


September 30, 2016

17 (Continued)

financial statements. However, depreciation expense is recorded in the basic financial statements of the County.

Capital asset activity for the year ended September 30, 2016, which is reported in the basic financial statements of the County, was as follows:


Automobiles and othervehicles $ 20,217,859 2,861,248 (1,288,902) 21,790,205

Furniture and equipment 17,441,883 1,845,317 (681,591) 18,605,609

37,659,742 4,706,565 (1,970,493) 40,395,814 Less accumulated

depreciation 27,687,122 4,010,664 (1,941,310) 29,756,476

$ 9,972,620 695,901 (29,183) 10,639,338

Additions to capital assets of $4,706,565 include amounts charged to capital outlay of $3,967,051, equipment acquired through trade or other recoveries of $119,191, and assets purchased by the County of $620,323.



Accrued compensatedabsences $ 7,691,222 2,292,654 (1,199,313) 8,784,563

Of these liabilities, approximately $732,000 is expected to be paid during the fiscal year ended September 30, 2017.

(6) Related-Party Transactions At September 30, 2016, the Sheriff had a payable due to the Board of $575,040, of which $474,099 is related to distribution of excess appropriations, $11,354 is related to a distribution of excess in a Board Interlocal Agreement, $85,291 is related to fees earned, and the balance of $4,296 is related to miscellaneous amounts. During the year ended September 30, 2016, the Sheriff received appropriations from the Board amounting to $104,284,770 and funds from an interlocal agreement of $1,956,554.


September 30, 2016

18 (Continued)

(7) Employee Retirement Plan Florida Retirement System General Information

Substantially all full-time and part-time employees of the Sheriff are eligible to participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature. The Sheriff participates in the special risk class.


www.dms.myflorida.com/workforce_operations/retirement/publications.

(a) Pension Plan

(i) Plan Description



Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life,


September 30, 2016

19 (Continued)

equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service.


As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of-living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement.


(iii) Contributions

Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows: Regular – 7.26% and 7.52%; Special Risk Administrative Support –32.95% and 28.06%; Special Risk – 22.04% and 22.57%; Senior Management Service – 21.43% and 21.77%; Elected Officers’ – 42.27% and 42.47%; and DROP participants – 12.88% and 12.99%. These employer contribution rates include a HIS Plan subsidy of 1.66% for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016.


September 30, 2016

20 (Continued)

The Sheriff’s contributions, excluding employee contributions, to the Pension Plan totaled $10,143,638 for the fiscal year ended September 30, 2016.


At September 30, 2016, the Sheriff reported a payable in the amount of $1,628,860 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2016. Such amounts are recorded as accrued salaries and benefits in the accompanying balance sheet – governmental funds.

(b) HIS Plan

(i) Plan Description



For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare.

(iii) Contributions

The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution for the period October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016 was 1.66%. The Sheriff contributed 100% of its statutorily required contributions for the current year. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.

The Board makes contributions to the HIS Plan on behalf of the Sheriff.

(c) Investment Plan

The SBA administers the defined contribution plan officially titled the FRS Investment Plan. The Investment Plan is reported in the SBA’s annual financial statements and in the State of Florida Comprehensive Annual Financial Report.


September 30, 2016

21 (Continued)

As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. Allocations to the investment member’s accounts during the 2015-16 fiscal year, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class – 6.30%, Special Risk Administrative Support class – 7.95%, Special Risk class – 14.00%, Senior Management Service class – 7.67% and County Elected Officers class – 11.34%.

For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial to the Sheriff and the County.

After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.

The Sheriff’s Investment Plan pension expense totaled approximately $1,523,000 for the fiscal year ended September 30, 2016.

As required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, liabilities related to the Sheriff’s participation in the Pension and HIS Plans are reported in the government-wide financial statements of the County.


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22 (Continued)

(8) Other Postemployment Benefits The Sheriff provides postretirement healthcare benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employ of the Sheriff. To be eligible for postretirement healthcare benefits, the retiree must have at least six years of service or attain normal retirement age as defined by Social Security. Retirees with more than six years of service, but less than 30 years of service, pay 100% of the premium cost to receive postretirement healthcare benefits. Retirees with 30 or more years of service do not pay a premium to receive postretirement healthcare benefits; however, they surrender their monthly state subsidy of $150 per month. As required by GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, liabilities and activities related to these benefits are reported in the government-wide financial statements of the County.

(9) Risk Management The Sheriff is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and injuries to employees. The County has established a risk management program to self-insure claims against the Board and the constitutional officers for various risks.

The Sheriff participates in the County’s risk management program to insure against workers’ compensation insurance risks and the Statewide Florida Sheriff’s Self-Insurance Fund (the Fund) to insure against general liabilities claims. The Fund is managed by representatives of the participating sheriff offices and provides professional liability insurance to participating agencies. The Fund provides liability insurance coverage subject to the following limitations: $5,000,000 for any claim involving a single individual, $5,000,000 for any incident that involves multiple claims, and an aggregate of $10,000,000 ultimate net loss per Sheriff during any policy period. The Sheriff carries insurance through the Florida Sheriff’s Automobile Risk program related to automobile insurance. There have been no significant reductions in insurance coverage in the last year. Settlements have not exceeded coverage for each of the past three fiscal years.

Premiums charged to participating sheriffs are based upon amounts believed by the Fund management to meet the estimated annual payout during the fiscal year and to pay for the estimated operating costs of the program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the County or the Statewide Florida Sheriff’s Fund.

The Sheriff has an insurance fund that accounts for a self-insured plan for employee group medical and prescription drug coverage. At September 30, 2016, the claims liability of $877,000 reported in the Internal Service fund Statement of Net Position is based on the provisions of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires that a liability for unpaid claims costs, including estimates of costs related to incurred but not reported claims, be accrued when insured events occur.


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23

Changes in claims liability amounts during the past two fiscal years is as follows:

Incurredclaims

Balance and change Claim BalanceOctober 1 in estimates payments September 30

2015 $ — 9,134,111 (8,243,111) 891,000 2016 891,000 10,742,963 (10,756,963) 877,000

(10) Contingencies (a) Litigation

The Sheriff is involved as defendant or plaintiff in certain litigations and claims arising from the ordinary course of operations. Funding for any judgments against the Sheriff in excess of available budget funds would be requested from the Board. In the opinion of the Sheriff and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Sheriff.

In March 2009, a verdict was asserted against the Pasco County Sheriff's office awarding approximately $8.7 million to the claimant. The Florida statutory sovereign immunity provisions at that time put a cap on damages of $100,000 and such damages were paid through the Florida Sheriff's Automobile Risk Program (SHARP). However, the claimant pursued the remaining verdict award through a claim bill with the Florida Legislature.

Subsequent to fiscal year end, a settlement agreement was reached between the parties in the amount of $325,000 per year for eight consecutive years, for a total of $2.6 million. The first payment is to be made by SHARP, due by 10/31/2017, with the remaining years to be paid by the Sheriff's office. The Sheriff's office will make the first payment no later than 10/31/2018, and each consecutive year thereafter until paid in full. As this obligation will not be paid with current available resources, no liability has been recorded in the accompanying financial statements.

(b) Federal and State Grants

Grant funds received by the Sheriff are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Sheriff. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Sheriff.


Combining Balance Sheet – General Fund

September 30, 2016

Extra duty MOUAssets General program Agreements Total

Cash $ 50 — — 50 Equity in pooled cash 7,365,432 59,197 — 7,424,629 Accounts receivable 38,092 — — 38,092 Due from Pasco County, Florida Board of

County Commissioners 446,255 — — 446,255 Due from other funds 478,307 — — 478,307 Due from other governments 491,178 — 31,442 522,620 Inventory 187,350 — — 187,350

Total assets $ 9,006,664 59,197 31,442 9,097,303


Liabilities:Accounts payable $ 3,462,860 4,860 2,381 3,470,101 Accrued salaries and benefits 4,781,283 17,542 1,010 4,799,835 Due to other funds — — 28,051 28,051 Due to Pasco County, Florida Board of

County Commissioners 574,703 — — 574,703 Due to other governments 468 — — 468

Total liabilities 8,819,314 22,402 31,442 8,873,158

Fund balances:Nonspendable 187,350 — — 187,350 Assigned — 36,795 — 36,795

Total fund balances 187,350 36,795 — 224,145

Total liabilities and fund balances $ 9,006,664 59,197 31,442 9,097,303


24


Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund


Extra duty MOUGeneral program Agreements Total

Revenues:Intergovernmental revenue $ — — 122,391 122,391 Charges for services 2,665,706 1,253,327 — 3,919,033 Interest revenue — 26 — 26 Miscellaneous revenue 361,871 — — 361,871

Total revenues 3,027,577 1,253,353 122,391 4,403,321


Personal services 3,630,585 — — 3,630,585 Operating 171,188 — — 171,188

Total general government 3,801,773 — — 3,801,773

Public safety:Personal services 80,552,301 1,232,427 120,086 81,904,814 Operating 20,449,998 86,941 2,305 20,539,244

Total public safety 101,002,299 1,319,368 122,391 102,444,058

Capital outlay 3,451,611 — — 3,451,611


Excess (deficiency) of revenuesover expenditures (105,228,106) (66,015) — (105,294,121)


Pasco County, Florida Board of CountyCommissioners appropriations 104,284,770 — — 104,284,770

Pasco County, Florida Board of CountyCommissioners Interlocal Agreement 1,956,554 — — 1,956,554


the Pasco County, Florida Board ofCounty Commissioners (474,099) — — (474,099)

Distribution of excess from interlocalagreement to Pasco County, FloridaBoard of County Commissioners (11,354) — — (11,354)

Internal Service Fund (501,663) — — (501,663)

Total other financing sources 105,254,208 — — 105,254,208

Excess (deficiency) of revenuesand other financing sourcesover expenditures 26,102 (66,015) — (39,913)

Fund balances, beginning of year 161,248 102,810 — 264,058

Fund balances, end of year $ 187,350 36,795 — 224,145


25

PASCO COUNTY, FLORIDA SHERIFF Nonmajor Special Revenue Funds

September 30, 2016

26 (Continued)

Special Revenue Funds are used to account for the proceeds of special revenue sources that are legally restricted to specified purposes. The Pasco County, Florida Sheriff (the Sheriff) has the following nonmajor special revenue funds:

Training Fund – This fund accounts for fines and forfeitures for noncriminal traffic infraction payments that are paid to the Clerk of the Circuit Court and remitted to the Sheriff to be used for agency training programs.

Confiscation Fund – These funds are generated at the Sheriff’s Office level from funds confiscated as a result of an arrest and forwarded to the Board of County Commissioners. Each expenditure within the fund must be approved by the Board of County Commissioners before the funds are transferred to the Sheriff to be expended for the specified purpose.

Unclaimed Evidence Fund – Funds are collected within the Unclaimed Evidence Fund when evidence related to formally resolved legal matters is not claimed in a timely manner and the Sheriff has exhausted all of the necessary procedures in an effort to remit payment to the appropriate individual. The money is then deposited into and accounted for in the Unclaimed Evidence Fund. Funds can be expended at the discretion of the Sheriff in accordance with Florida Statute 705.

VOCA Grant Fund – This Fund accounts for federal awards passed through from the Florida Office of Attorney General and are used to provide assistance for victims of crime.

Officer Friendly Grant Fund – This fund accounts for funds received under a grant agreement with the federal government.

At Risk Youth Grant Fund – This fund accounts for funds received from the Department of Juvenile Justice.

Juvenile Assessment Fund – This fund accounts for funds received from the Department of Juvenile Justice to staff the Juvenile Assessment Center.

Parking Enforcement Fund – Parking citations for illegally parking in a disabled parking area are paid to the Clerk of the Circuit Court, per County Ordinance 97-14. A portion of the amount collected is remitted to the Sheriff and accounted for in the Parking Enforcement Fund. These funds are to be used to defray expenses for the administration and enforcement of the disabled parking sections.

Federal Forfeiture Fund – In accordance with the Federal Government Controlled Substances Act, in an effort to enhance the cooperation of state and local law enforcement offices, any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture. The amount to be requested can be calculated by using the Guide to Equitable Sharing of Federally Forfeited Property for State and Local Law Enforcement Agencies. Once the funds have been collected by the Sheriff from the federal government, the funds can be used toward activities to enhance future investigations, law enforcement training, and the purchase of law enforcement equipment such as body armor and firearms.

Criminal Alien Assistance Fund – This fund accounts for funds received from the United States Department of Justice through the Pasco County Board in order to offset the cost of housing illegal aliens. The funds are used based upon program guidelines.

PASCO COUNTY, FLORIDA SHERIFF Nonmajor Special Revenue Funds

September 30, 2016

27

HUD Drug Elimination Grant Fund – This fund accounts for funds received under a grant agreement with the federal government to help at risk communities with their drug problems.

Pasco Task Force Fund – This fund accounts for funds passed through the Florida Department of Law Enforcement from the U.S. Department of Justice. These funds provide for a multi-jurisdictional drug task force involving all of the local police departments.

Stop Violence vs. Women Fund – This fund accounts for funds passed through the Florida Coalition Against Violence from the Department of Children and Families. These funds provide for assistance for domestic violence.

DOT DUI Enforcement Fund – This fund accounts for funds provided by the Florida Department of Transportation to reduce driving under the influence incidents in Pasco County.

V&N Gang Suppression (6) Fund – This fund accounts for funds used to target gang activity funded through the U.S. Department of Justice, and are used to continue our program targeting gang activity.

Pasco HIDTA Task Force Fund – A program to fight drug trafficking.

HVE Pedestrian Grant Fund – This fund is used to inform and enforce pedestrian and bicycle statutes in Florida.

Domestic Marijuana Eradication Fund – This fund is used to support detection, dismantling, and eradication of domestically grown marijuana.

Crime Prevention Fund – This fund is used to account for funds received in accordance with the Crime Prevention ordinance per Florida Statute 775.083.

Community Projects Fund – This fund is used to account for funds received to implement various projects to enhance community relations and safety.

Solving Cold Cases Fund – This fund allows for old case files to be re-evaluated and sent for DNA analysis.

Operation Stonegarden Fund – This fund supports joint missions with Homeland Security to secure water boarders of the United States.

Endangered Adult Fund – This program focuses on developing community partnerships to assist law enforcement with Alzheimer and dementia persons.

DOT Motorcycle Fund – This program targeted education and enforcement activities of motorcyclists.

Operation Stonegarden Choke Point Fund – This program supports joint missions with Homeland Security to secure land-based and waterborne smuggling routes.

InVEST Fund – This fund provides a dedicated detective to serve victims of domestic and dating violence.

SNAP PGI Fund – also known as “program generated income.” This fund consists of the net proceeds of a forfeiture in which a detective(s) of the Pasco Task Force fund directly participated in the investigation or prosecution.


Combining Balance Sheet – Nonmajor Special Revenue Funds

September 30, 2016

OfficerUnclaimed VOCA Friendly At Risk Juvenile

Assets Training Confiscation Evidence Grant Grant Youth Grant Assessment

Cash $ — — — — — — — Equity in pooled cash 338,111 — 109,459 — — 42,595 — Due from Pasco County, Florida Board of

County Commissioners 11,770 80,443 — — 28,768 — — Due from other funds — — — — — — — Due from other governments 3,660 — — 9,912 — 22,462 22,997

Total assets $ 353,541 80,443 109,459 9,912 28,768 65,057 22,997


Liabilities:Accounts payable $ 9,366 700 — — — — — Accrued salaries and benefits — 1,568 — 837 1,422 3,635 5,528 Due to other funds — 78,175 — 9,075 27,346 — 17,469 Due to Pasco County, Florida Board of

County Commissioners 337 — — — — — — Due to other governments — — — — — — — Unearned revenue — — — — — 61,422 —

Total liabilities 9,703 80,443 — 9,912 28,768 65,057 22,997

Fund balances – restricted for fund purposes 343,838 — 109,459 — — — —

Total fund balances (deficit) 343,838 — 109,459 — — — —

Total liabilities and fund balances $ 353,541 80,443 109,459 9,912 28,768 65,057 22,997

28 (Continued)



September 30, 2016

Criminal HUD Drug Pasco Stop DOTParking Federal Alien Elimination Task Violence DUI

Assets Enforcement Forfeiture Assistance Grant Force vs. Women Enforcement

Cash $ — 446,907 — — — — — Equity in pooled cash 97,027 15,033 205,105 — — 1,071 — Due from Pasco County, Florida Board of

County Commissioners 1,541 — — — 77,846 — — Due from other funds — — — — — — — Due from other governments — — — 8,257 — — 14,817

Total assets $ 98,568 461,940 205,105 8,257 77,846 1,071 14,817


Liabilities:Accounts payable $ 590 85,710 — — — — — Accrued salaries and benefits — — — — 2,037 1,071 — Due to other funds — — — 8,257 71,933 — 14,044 Due to Pasco County, Florida Board of

County Commissioners — — — — — — — Due to other governments — — — — 3,876 — — Unearned revenue — — — — — — 773

Total liabilities 590 85,710 — 8,257 77,846 1,071 14,817

Fund balances – restricted for fund purposes 97,978 376,230 205,105 — — — —

Total fund balances (deficit) 97,978 376,230 205,105 — — — —

Total liabilities and fund balances $ 98,568 461,940 205,105 8,257 77,846 1,071 14,817

29 (Continued)



September 30, 2016

V&N Pasco HVE DomesticGang HIDTA Pedestrian Marijuana Crime Community Solving

Assets Suppression (6) Task Force Grant Eradication Prevention Projects Cold Cases

Cash $ — — — — — 306,942 — Equity in pooled cash — — — — 580,313 — — Due from Pasco County, Florida Board of

County Commissioners 28,180 — — — 10,443 — — Due from other funds — — — — — — — Due from other governments — 22,974 — 1,743 — — 10,251

Total assets $ 28,180 22,974 — 1,743 590,756 306,942 10,251


Liabilities:Accounts payable $ — — — — 2,475 — — Accrued salaries and benefits 1,207 2,396 — — — — — Due to other funds 28,279 22,197 — 807 — — 10,251 Due to Pasco County, Florida Board of

County Commissioners — — — — — — — Due to other governments — — — — — — — Unearned revenue — 1,210 — — — — —

Total liabilities 29,486 25,803 — 807 2,475 — 10,251

Fund balances – restricted for fund purposes (1,306) (2,829) — 936 588,281 306,942 —

Total fund balances (deficit) (1,306) (2,829) — 936 588,281 306,942 —

Total liabilities and fund balances $ 28,180 22,974 — 1,743 590,756 306,942 10,251

30 (Continued)



September 30, 2016

OperationOperation Endangered DOT Stonegarden SNAP

Assets Stonegarden Adult Motorcycle Choke Point InVEST PGI Total

Cash $ — — — — — 78,752 832,601 Equity in pooled cash — — — — — 29,682 1,418,396 Due from Pasco County, Florida Board of

County Commissioners — — — — — — 238,991 Due from other funds — — — — — 29,683 29,683 Due from other governments 8,032 15,834 5,649 6,048 8,630 537 161,803

Total assets $ 8,032 15,834 5,649 6,048 8,630 138,654 2,681,474


Liabilities:Accounts payable $ — — — — — 29,683 128,524 Accrued salaries and benefits — — — — 8,733 — 28,434 Due to other funds 8,032 15,834 5,649 6,048 1,438 59,366 384,200 Due to Pasco County, Florida

Board of County Commissioners — — — — — — 337 Due to other governments — — — — — — 3,876 Unearned revenue — — — — — — 63,405

Total liabilities 8,032 15,834 5,649 6,048 10,171 89,049 608,776

Fund balances – restricted for fund purposes — — — — (1,541) 49,605 2,072,698

Total fund balances (deficit) — — — — (1,541) 49,605 2,072,698

Total liabilities and fund balances $ 8,032 15,834 5,649 6,048 8,630 138,654 2,681,474


31


Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds


OfficerUnclaimed VOCA Friendly At Risk Juvenile

Training Confiscation Evidence Grant Grant Youth Grant Assessment

Revenues:Intergovernmental revenue $ — — — 41,868 99,626 162,247 228,824 Fines and forfeitures 128,716 121,432 3,963 — — — — Interest revenue 50 — — — — — — Miscellaneous revenue — — — — — — —

Total revenues 128,766 121,432 3,963 41,868 99,626 162,247 228,824

Expenditures:Public safety:

Personal services — 84,455 — 41,868 87,626 156,829 228,824 Operating 239,293 34,097 — — 12,000 5,418 —

Capital outlay — 2,880 — — — — 23,906

Total expenditures 239,293 121,432 — 41,868 99,626 162,247 252,730

Excess (deficiency) ofrevenues over expenditures (110,527) — 3,963 — — — (23,906)

Fund balances (deficit), beginning of year 454,365 — 105,496 — — — 23,906

Fund balances (deficit), end of year $ 343,838 — 109,459 — — — —

32 (Continued)




Criminal HUD Drug Pasco Stop DOTParking Federal Alien Elimination Task Violence DUI

Enforcement Forfeiture Assistance Grant Force vs. Women Enforcement

Revenues:Intergovernmental revenue $ — — 25,961 30,000 112,761 84,155 25,282 Fines and forfeitures 18,594 203,425 — — — — — Interest revenue — 317 — — — — — Miscellaneous revenue — — — — — — —

Total revenues 18,594 203,742 25,961 30,000 112,761 84,155 25,282


Personal services — 18,014 — 30,000 87,761 80,334 25,282 Operating 7,801 9,627 — — 15,025 3,781 —

Capital outlay — 87,221 — — 9,975 — —

Total expenditures 7,801 114,862 — 30,000 112,761 84,115 25,282

Excess (deficiency) ofrevenues over expenditures 10,793 88,880 25,961 — — 40 —

Fund balances (deficit), beginning of year 87,185 287,350 179,144 — — (40) —

Fund balances (deficit), end of year $ 97,978 376,230 205,105 — — — —

33 (Continued)




V&N Gang Pasco HVE DomesticSuppression HIDTA Pedestrian Marijuana Crime Community Solving

(6) Task Force Grant Eradication Prevention Projects Cold Cases

Revenues:Intergovernmental revenue $ 64,063 145,129 18,483 6,851 146,674 — 39,471 Fines and forfeitures — (10,345) — — — — — Interest revenue — — — — — — — Miscellaneous revenue — — — — 2,564 307,422 —

Total revenues 64,063 134,784 18,483 6,851 149,238 307,422 39,471


Personal services 62,616 143,732 18,483 5,714 — — 39,471 Operating 2,741 4,229 — 1,137 69,657 265,218 —

Capital outlay — — — — 64,496 — —

Total expenditures 65,357 147,961 18,483 6,851 134,153 265,218 39,471

Excess (deficiency) ofrevenues over expenditures (1,294) (13,177) — — 15,085 42,204 —

Fund balances (deficit), beginning of year (12) 10,348 — 936 573,196 264,738 —

Fund balances (deficit), end of year $ (1,306) (2,829) — 936 588,281 306,942 —

34 (Continued)




OperationOperation Endangered DOT Stonegarden SNAP

Stonegarden Adult Motorcycle Choke Point InVEST PGI Total

Revenues:Intergovernmental revenue $ 66,904 15,914 58,000 24,882 1,284 — 1,398,379Fines and forfeitures — — — — — 14,936 480,721Interest revenue — — — — — 73 440Miscellaneous revenue — — — — — — 309,986

Total revenues 66,904 15,914 58,000 24,882 1,284 15,009 2,189,526


Personal services 21,253 80 58,000 5,197 2,825 — 1,198,364Operating 1,208 — — 851 — 6,432 678,515

Capital outlay 44,443 15,834 — 18,834 — 29,683 297,272

Total expenditures 66,904 15,914 58,000 24,882 2,825 36,115 2,174,151

Excess (deficiency) ofrevenues over expenditures — — — — (1,541) (21,106) 15,375

Fund balances (deficit), beginning of year — — — — — 70,711 2,057,323

Fund balances (deficit), end of year $ — — — — (1,541) 49,605 2,072,698


35

PASCO COUNTY, FLORIDA SHERIFF Fiduciary Funds

September 30, 2016

36

Fiduciary Funds are used to account for assets held by a governmental unit as trustee or agent for individuals, private organizations, and other governmental units.

Agency Funds – To account for the receipt and subsequent activity of moneys temporarily held for others. These moneys include amounts held for inmates of the County jail system, cash (appearance) bonds of accused individuals, and other miscellaneous items.


Combining Balance Sheet – Agency Funds

September 30, 2016

Cash Inmate EvidenceBonds Cash HoldingFund Fund Fund Total

Assets

Cash $ 23,522 37,963 — 61,485Equity in pooled cash — — 581,799 581,799

Total assets $ 23,522 37,963 581,799 643,284

Liabilities

Voucher payable $ — — 536 536Due to other funds 736 — — 736Due to individuals 22,786 37,963 581,263 642,012

Total liabilities $ 23,522 37,963 581,799 643,284


37


Combining Statement of Changes in Assets and Liabilities – Agency Funds


October 1, September 30,Cash Bonds Fund 2015 Additions Deductions 2016

Assets:Cash $ 550 531,289 508,317 23,522

$ 550 531,289 508,317 23,522

Liabilities:Due to individuals $ 550 531,289 509,053 22,786Due to other funds — 736 — 736

$ 550 532,025 509,053 23,522

Inmate Cash Fund

Assets:Cash $ 27,908 288,098 278,043 37,963

$ 27,908 288,098 278,043 37,963

Liabilities:Due to individuals $ 27,908 288,098 278,043 37,963

$ 27,908 288,098 278,043 37,963

Evidence Holding Fund

Assets:Cash $ 559,648 79,092 638,740 —Equity in pooled cash — 691,754 109,955 581,799Due from other funds 13 — 13 —

$ 559,661 770,846 748,708 581,799

Liabilities:Voucher payable $ 18 74,094 73,576 536Due to individuals 559,643 214,537 192,917 581,263

$ 559,661 288,631 266,493 581,799

Total – Agency Funds

Assets:Cash $ 588,106 898,479 1,425,100 61,485Equity in pooled cash — 691,754 109,955 581,799Due from other funds 13 — 13 —

$ 588,119 1,590,233 1,535,068 643,284

Liabilities:Vouchers payable 18 74,094 73,576 536Due to other funds — 736 — 736Due to individuals 588,101 1,033,924 980,013 642,012

$ 588,119 1,108,754 1,053,589 643,284


38

39

Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government

Auditing Standards


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of each major fund and the aggregate remaining fund information of the Pasco County, Florida Sheriff, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Sheriff’s basic financial statements, and have issued our report thereon dated August 7, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however our report was not modified for this matter. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Pasco County, Florida Sheriff’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Pasco County, Florida Sheriff’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Pasco County, Florida Sheriff’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described below as finding 2016-001 that we consider to be a significant deficiency.

Finding 2016 – 001 Criteria

Management is responsible for the preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP).



40

Condition

We identified several adjusting entries required to present the financial statements in accordance with GAAP which included:

Improper initial presentation of due to and due from other funds such that they did not reconcile

Improper classification of transfers from the general fund to the internal service fund as charges forservices instead of transfers

Improper calculation of compensated absences, as certain individuals had balances in excess of themaximum 500 hours upon which the liability was initially calculated

Context

Continued transition of key finance department personnel involved in the financial reporting process.

Effect

Ineffective design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements may prevent management from identifying a material misstatement, whether due to fraud or error

Cause

Continued transition of key finance department personnel involved in the financial reporting process.

Recommendation

Management should establish policies and procedures to monitor and reconcile due to and due from account balances on a monthly basis. There should be adequate supervision and effective review performed to ensure such reconciliations are taking place on a timely basis. As it relates to the annual preparation of the financial statements, review by someone other than the preparer of the financial statements and supporting documentation may help alleviate similar issues going forward.

Management’s Response

Concur with the recommendation. Internal procedures are now in place to monitor and reconcile due to and due from account balances monthly. Monthly reconciliations are reviewed and approved by management. Two staff members will review financial statements and supporting documentation for additional scrutiny going forward.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Pasco County, Florida Sheriff’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Pasco County, Florida Sheriff’s Response to Findings

The Pasco County, Florida Sheriff’s response to the finding identified in our audit is described previously. The Pasco County, Florida Sheriff’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

41

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Pasco County, Florida Sheriff’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Sheriff’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


/s/ KPMG LLP

42

Management Letter


We have audited the financial statements of each major fund and the aggregate remaining fund information of the Pasco County, Florida Sheriff, as of and for the year ended September 30, 2016, and have issued our report thereon dated August 7, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified for this matter.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have also issued our report dated August 7, 2017 on our consideration of the Pasco County, Florida Sheriff’s internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida, and require that certain items be addressed in this letter.

Prior Audit Findings

The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Finding 2015-001 was not completely corrected and has been repeated as current year finding 2016-001. Finding 2015-002 was corrected.

Other Matters

The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, any recommendations to improve the Pasco County, Florida Sheriff’s financial management. In connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter any violations of provisions of contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.



43

Official Title and Legal Authority

The Rules of the Auditor General, Section 10.554(1)(i)(4), require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. In that regard, the Pasco County, Florida Sheriff was established by the Constitution of the State of Florida, Article VIII, Section 1(d). The Pasco County, Florida Sheriff does not have any component units.

* * * * * * *

This management letter is intended solely for the information and use of the Pasco County, Florida Sheriff, management, the Board of County Commissioners of Pasco County, Florida, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.


/s/ KPMG LLP

44



We have examined the Pasco County, Florida Sheriff’s compliance with Section 218.415, Florida Statutes as of September 30, 2016. Management is responsible for the Pasco County, Florida Sheriff’s compliance with those requirements. Our responsibility is to express an opinion on the Pasco County, Florida Sheriff’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Pasco County, Florida Sheriff’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Pasco County, Florida Sheriff’s compliance with specified requirements.

In our opinion, the Pasco County, Florida Sheriff complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




/s/ KPMG LLP

PASCO COUNTY, FLORIDA SUPERVISOR OF ELECTIONS


September 30, 2016



Table of Contents

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Honorable Brian E. Corley, Supervisor of Elections Pasco County, Florida:

Report on the Financial Statements We have audited the accompanying financial statements of each major fund of the Pasco County, Florida Supervisor of Elections as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Supervisor of Elections’ basic financial statements as listed in the table of contents.







Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each major fund of the Pasco County, Florida Supervisor of Elections as of September 30, 2016, and the respective changes in financial position, and the budgetary comparison for the general fund for the year then ended in accordance with U.S. generally accepted accounting principles.



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Emphasis of Matter

As discussed in note 1(a) to the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Pasco County, Florida Supervisor of Elections as of September 30, 2016, and the changes in its financial position for the year then ended, in conformity with U.S. generally accepted accounting principles. Our opinion is not modified with respect to this matter.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 11, 2017 on our consideration of the Pasco County, Florida Supervisor of Elections’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Supervisor of Elections’ internal control over financial reporting and compliance.

April 11, 2017 Certified Public Accountants

PASCO COUNTY, FLORIDASUPERVISOR OF ELECTIONS

Balance Sheet – Governmental Funds

September 30, 2016

Grant PollworkerElection Recruitment

General Activities and TrainingAssets Fund Fund Fund Total

Cash $ 332,288 — — 332,288 Due from other funds — 15,286 16,948 32,234

Total assets $ 332,288 15,286 16,948 364,522

Liabilities and Fund Balance

Liabilities:Accounts payable $ 89,217 — — 89,217 Accrued salaries and benefits 105,266 — — 105,266 Unearned revenue — 13,350 12,984 26,334 Due to other funds 32,234 — — 32,234 Due to Pasco County, Florida Board

of County Commissioners 105,571 — — 105,571

Total liabilities 332,288 13,350 12,984 358,622

Fund balance – restricted for grant activity — 1,936 3,964 5,900

Total fund balance — 1,936 3,964 5,900

Total liabilities and fund balance $ 332,288 15,286 16,948 364,522


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Statement of Revenues, Expenditures, and Changes inFund Balances – Governmental Funds


Grant PollworkerElection Recruitment

General Activities and TrainingFund Fund Fund Total

Revenues:Intergovernmental $ — 135,126 9,040 144,166 Charges for services 11,248 — — 11,248 Interest 3,202 73 23 3,298

Total revenues 14,450 135,199 9,063 158,712


Personal services 2,305,210 — — 2,305,210 Operating 1,041,498 135,126 9,040 1,185,664

Capital outlay 33,517 — — 33,517

Total expenditures 3,380,225 135,126 9,040 3,524,391

Excess (deficiency) of revenuesover expenditures (3,365,775) 73 23 (3,365,679)


Pasco County, Florida Board of CountyCommissioners appropriations 3,471,346 — — 3,471,346

Transfers out:Distribution of excess appropriations to the

Pasco County, Florida Board of CountyCommissioners (105,571) — — (105,571)

Total other financing sources 3,365,775 — — 3,365,775

Excess of revenues and otherfinancing sources over expendituresand other financing uses — 73 23 96

Fund balance – beginning of year — 1,863 3,941 5,804

Fund balance – end of year $ — 1,936 3,964 5,900


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Statement of Revenues, Expenditures, and Changes inFund Balance – Budget and Actual – General Fund


VarianceBudget with final

Original Final Actual budget

Revenues:Charges for services $ — — 11,248 11,248 Interest — — 3,202 3,202

Total revenues — — 14,450 14,450


Personal services 2,398,691 2,398,691 2,305,210 93,481 Operating 1,072,655 1,072,655 1,041,498 31,157

Capital outlay — — 33,517 (33,517)


Excess (deficiency) of revenuesover expenditures (3,471,346) (3,471,346) (3,365,775) 105,571


Pasco County, Florida Board of CountyCommissioners appropriations 3,471,346 3,471,346 3,471,346 —

Transfers out:Distribution of excess appropriations to the

Pasco County, Florida Board of CountyCommissioners — — (105,571) (105,571)

Total other financing sources 3,471,346 3,471,346 3,365,775 (105,571)

Excess of revenues and otherfinancing sources overexpenditures and otherfinancing uses $ — — — —


Fund balance – end of year —


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Financial Statements September 30, 2016

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The Pasco County, Florida Supervisor of Elections (Supervisor of Elections) is an elected constitutional officer as provided for by the Constitution of the state of Florida. Pursuant to Chapter 129, Florida Statutes, the Supervisor of Elections’ budget is submitted to the Pasco County, Florida Board of County Commissioners (Board) for approval.

The financial statements presented include the general fund and special revenue funds of the Supervisor of Elections’ office. The accompanying financial statements were prepared for purposes of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits.

Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires the Supervisor of Elections to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Supervisor of Elections as of September 30, 2016 and the changes in its financial position for the year then ended in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with generally accepted accounting principles.

As a result of the budgetary oversight by the Board and financial dependency on the Board, the financial activities of the Supervisor of Elections, as a constitutional officer, are included in the Pasco County, Florida Comprehensive Annual Financial Report.

Transfers are provided by appropriations from the Board pursuant to law. Estimated receipts and budgeted fund balances must equal appropriations. The Supervisor of Elections is required to refund to the Board all excess appropriations annually; therefore, no unappropriated fund balance is carried forward.

(b) Measurement Focus, Basis of Accounting, and Basis of Presentation Fund financial statements report detailed information about the Supervisor of Elections. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Each major fund is reported in a separate column.

(i) Governmental Funds

Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities, generally, are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in current assets and liabilities.



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The Supervisor of Elections reports the following major governmental funds:

General Fund – The general fund is used to account for the general operations of the Supervisor of Elections and includes all transactions, which are not accounted for in another fund.

Grant Election Activities Fund – This fund accounts for funds received from the state of Florida. The fund is used to provide sample ballots.

Poll Worker Recruitment and Training Fund – This fund accounts for funds received from the state of Florida. The funds in this account are to be used to help recruit and train poll workers.

The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance current liabilities of the fiscal year). For this purpose, the Supervisor of Elections considers revenues to be available if they are collected within 60 days of the end of the current period. Grant revenues are considered susceptible to accrual if collected within one year of the end of the current period. Expenditures are recorded when the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured.

The appropriations from the Board are the primary source of funds considered to be susceptible to accrual.

Intergovernmental revenues are recognized when eligibility requirements are met and related amounts are available from the grantor. Interest income is recognized as it is earned and becomes measurable and available to pay liabilities of the current period.

Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which other revenue was recognized. The amount of this distribution is recorded as a liability and as an other financing use in the accompanying financial statements.

Capital outlays expended in the governmental fund operations are capitalized in the basic financial statements of the Board rather than in the governmental funds of the Supervisor of Elections.

(c) Unearned Revenue Unearned revenue represents grant funds received which have not been expended at September 30, 2016. Revenue will be recognized in subsequent years when all eligibility requirements have been met.

(d) Compensated Absences All regular full-time employees of the Supervisor of Elections are entitled to annual leave with pay pending completion of 90 days of continuous service. The employees are generally allowed to accumulate annual leave up to a maximum of 224 hours, depending on the number of years of service. An employee’s accumulated leave that exceeds 187.5 hours as of November 1 of each year is paid out



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at the first payroll in December of each year if funding permits. Upon termination, the employee is paid for unused annual leave. Annual leave payments are included in operating costs when the payments are made to the employees. The liability for compensated absences is not reported in the governmental funds, but rather is reported in the basic financial statements of the Board.

(e) Use of Estimates The preparation of the financial statements requires management of the Supervisor of Elections to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the period. Actual results could differ from those estimates.

(f) Accounting Standards During the fiscal year ended September 30, 2016, the Supervisor of Elections adopted GASB Statement No. 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issued related to fair value measurements.

(2) Budgetary Process Florida Statutes 129.03 and 129.201 govern the preparation, adoption, and administration of the Supervisor of Elections’ annual budget. The Supervisor of Elections submits a budget for the general fund to the Board for approval. The annual budget serves as the legal authorization for expenditures. Any subsequent amendments to the Supervisor of Elections’ total budget must be approved by the Board. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Supervisor of Elections.


Budgets for other funds, while prepared, are not submitted to the Board for approval as they generally are governed by federal or state grant agreements.

(3) Cash At September 30, 2016, the carrying value of the Supervisor of Election’s cash was as follows:

CarryingType value

Cash on hand $ 100 Demand deposits 332,188

Total cash $ 332,288



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(a) Fair Value Measurement As required by Governmental Accounting Standards Board Statement No. 72, Fair Value Measurements and Application, the Supervisor of Elections categorizes its assets and liabilities carried at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset or liability. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant observable inputs; Level 3 inputs are significant unobservable inputs.

The Supervisor of Elections has no assets or liabilities that are carried at fair value that are subject to the leveling disclosures.

(b) Custodial Credit Risk At September 30, 2016, the Supervisor of Elections’ deposits were entirely covered by federal depository insurance or by collateral pledged with the state treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss.

(c) Credit Risk The Supervisor of Elections has no written investment policy and therefore follows the guidance in Section 219.075, Florida Statutes regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes authorize the Supervisor of Elections to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and direct obligations of the U.S. Treasury. Additionally, Florida statutes allow local governments to place public funds in interest-bearing time deposits or savings accounts in qualified public depositories that participate in a collateral pool under the Florida Security for Public Deposits Act (Section 280.02 Florida Statutes). The pool is administered by the State Treasurer, who may make additonal assessments to ensure that no public funds will be lost.

(d) Interest Rate Risk The Supervisor of Elections has no specific investment policy regarding interest rate risk.

(4) Capital Assets Capital assets used by the Supervisor of Elections are reported in the basic financial statements of the Board rather than in the governmental funds of the Supervisor of Elections. Upon acquisition, such assets are recorded as expenditures in the governmental funds of the Supervisor of Elections, and are capitalized in the basic financial statements of the Board. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date received. The Supervisor of Elections maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense is recorded in the basic financial statements of the Board.



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September 30, September 30,2015 Additions Retirements 2016


Of these liabilities, approximately $131,000 is expected to be paid during the fiscal year ended September 30, 2017. These long-term liabilities are not reported in the financial statements of the Supervisor of Elections since they have not matured.

(6) Related Party Transactions During the year ended September 30, 2016, the Board provided funding for the Supervisor of Elections that amounted to $3,471,346. At September 30, 2016, the Supervisor of Elections had a payable due to the Board of $105,571 related to the distribution of excess appropriations.

(7) Retirement Plan Florida Retirement System General Information

All of the Supervisor of Elections’ employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature.





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Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service.


As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost-of- living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost-of-living adjustment. The annual cost-of-living adjustment is a proportion of three percent determined by dividing the sum of the pre-July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost-of-living adjustment after retirement.



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(iii) Contributions

Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on state-wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows:

Regular – 7.26% and 7.52%; Special Risk Administrative Support – 32.95% and 28.06%; Special Risk – 22.04% and 22.57%; Senior Management Service – 21.43% and 21.77%; Elected Officers’ – 42.27% and 42.47%; and DROP participants – 12.88% and 12.99%. These employer contribution rates include a HIS Plan subsidy of 1.66% for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016.

The Supervisor of Elections’ contributions, excluding employee contributions, to the Pension Plan totaled $151,205 for the fiscal year ended September 30, 2016.


At September 30, 2016, the Supervisor of Elections reported a payable in the amount of $5,645 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2016. Such amounts are recorded as accrued salaries and benefits in the accompanying balance sheet – governmental funds.




For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State-administered retirement system must provide proof of health insurance coverage, which may include Medicare.



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(iii) Contributions

The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution for both the period October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016 was 1.66%. The Supervisor of Elections contributed 100% of its statutorily required contributions for the current year. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.

The Board makes contributions to the HIS Plan on behalf of the Supervisor of Elections.


As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.04% of payroll and by forfeited benefits of plan members. Allocations to the investment member’s accounts during the 2015-16 fiscal year, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular class-6.30%, Special Risk Administrative Support class-7.95%, Special Risk class-14.00%, Senior Management Service class-7.67% and County Elected Officers class-11.34%.

For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS-covered employment within the five-year period, the employee will regain control over their account. If the employee does not return within the five-year period, the employee will forfeit the accumulated account balance. For the fiscal year ended



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September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial.

After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump-sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.

The Supervisor of Elections’ Investment Plan pension expense totaled $4,640 for the fiscal year ended September 30, 2016.

As required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, liabilities related to the Supervisor of Elections’ participation in the Pension and HIS Plans are reported in the government wide financial statements of the Board.

(8) Other Postemployment Benefits The Supervisor of Elections provides postretirement healthcare benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employ of the Supervisor of Elections, until they are eligible for Medicare. To be eligible for postretirement healthcare benefits, the retiree must have at least six years of service. Retirees with more than six years of service, but less than 30 years of service pay 100% of the premium cost to receive postretirement healthcare benefits. Retirees with 30 or more years of service do not pay a premium to receive postretirement healthcare benefits; however, they surrender their monthly state subsidy of $150 per month. As required by GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, liabilities and activities related to these benefits are reported in the government-wide financial statements of the Board.

(9) Risk Management The County is exposed to various risks of loss, including but not limited to general liability, auto liability, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risks of uninsured loss through an internal service fund. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Board. The Supervisor of Elections participates in the County’s risk management program.

The County has general liability insurance with $500,000 retention per claim with $1,000,000 retention limit per occurrence and $2,000,000 aggregate. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence can only be recovered through an act of the State Legislature. Effective October 1, 2011, sovereign immunity limits were increased to $200,000 per claim and $300,000 per occurrence for claims incurred after that date. The County has worker’s compensation insurance with a $650,000 deductible per occurrence for police/fire, and a $500,000 deductible per occurrence for all others. Settlements have not exceeded coverage in any of the past three fiscal years. All liabilities associated with these self–insured risks are reported in the basic financial statements of the County.



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(10) Lease Commitments The Supervisor of Elections has entered into certain noncancelable operating leases for election support equipment and office equipment necessary for the conduct of operations that expire at various dates during the next three years. Future minimum lease payments under these noncancelable lease agreements provide for aggregate minimum annual rental payments as follows:

Fiscal years:2017 $ 9,945 2018 8,280 2019 4,814

$ 23,039

Rental expense for all operating leases was $61,679 for the year ended September 30, 2016. There were no contingent rentals or sublease rentals associated with leases in effect at September 30, 2016.

(11) Contingencies Grant funds received by the Supervisor of Elections are subject to audit by grantor agencies. Audits of these grants may result in disallowed costs, which may constitute a liability of the Supervisor of Elections. In the opinion of management, disallowed costs, if any, would be immaterial to the financial position of the Supervisor of Elections.

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Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of each major fund of the Pasco County, Florida Supervisor of Elections, as of and for the year then ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Supervisor of Elections’ basic financial statements, and have issued our report thereon dated April 11, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified for this matter.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Pasco County, Florida Supervisor of Elections’ internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Pasco County, Florida Supervisor of Elections’ internal control. Accordingly, we do not express an opinion on the effectiveness of the Pasco County, Florida Supervisor of Elections’ internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.


Compliance and Other Matters As part of obtaining reasonable assurance about whether the Pasco County, Florida Supervisor of Elections’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.



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Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Pasco County, Florida Supervisor of Elections’ internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Supervisor of Elections’ internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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Management Letter


We have audited the financial statements of each major fund of the Pasco County, Florida Supervisor of Elections as of and for the year ended September 30, 2016, and have issued our report thereon dated April 11, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified with respect to this matter.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have also issued our report dated April 11, 2017 on our consideration of the Pasco County, Florida Supervisor of Elections’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be considered in conjunction with this management letter.


Prior Audit Findings The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit.

Other Matters The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and compliance and other matters, any recommendations to improve the Pasco County, Florida Supervisor of Elections’ financial management. In connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter any noncompliance with provisions of contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.



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Official Title and Legal Authority The Rules of the Auditor General, Section 10.554(1)(i)(4), require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. In that regard, the Pasco County, Florida Supervisor of Elections was established by the Constitution of the State of Florida, Article VIII, Section 1(d). The Pasco County, Florida Supervisor of Elections has no component units.

Purpose of this Letter This management letter is intended solely for the information and use of the Pasco County, Florida Supervisor of Elections, management, the Board of County Commissioners of Pasco County, Florida, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.


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We have examined the Pasco County, Florida Supervisor of Elections’ compliance with Section 218.415, Florida Statutes as of September 30, 2016. Management is responsible for the Pasco County, Florida Supervisor of Elections’ compliance with those requirements. Our responsibility is to express an opinion on the Pasco County, Florida Supervisor of Elections’ compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Pasco County, Florida Supervisor of Elections’ compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Pasco County, Florida Supervisor of Elections’ compliance with specified requirements.

In our opinion, the Pasco County, Florida Supervisor of Elections complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




PASCO COUNTY, FLORIDA TAX COLLECTOR


September 30, 2016



Table of Contents

Page



Balance Sheet – General Fund 3

Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund 4


Balance Sheet – Agency Funds 6


Combining Information:

Combining Balance Sheet – Agency Funds 20

Combining Statement of Changes in Assets and Liabilities – Agency Funds 21





The Honorable Mike Fasano, Tax Collector Pasco County, Florida:

Report on the Financial Statements We have audited the accompanying financial statements of the general fund and the aggregate remaining fund information of the Pasco County, Florida Tax Collector, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Tax Collector’s basic financial statements as listed in the table of contents.







Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the general fund and the aggregate remaining fund information of the Pasco County, Florida Tax Collector as of September 30, 2016, and the respective changes in financial position, and the budgetary comparison – general fund, for the year then ended, in accordance with U.S. generally accepted accounting principles.



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Emphasis of Matter

As discussed in note 1(a) to the financial statements, the accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a complete presentation of the financial position of the Pasco County, Florida Tax Collector as of September 30, 2016, and the changes in its financial position for the year then ended, in conformity with U.S. generally accepted accounting principles. Our opinions are not modified with respect to this matter.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Pasco County, Florida Tax Collector’s basic financial statements. The combining balance sheet and combining statement of changes in assets and liabilities – agency funds are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining balance sheet and combining statement of changes in assets and liabilities – agency funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining balance sheet and combining statement of changes in assets and liabilities – agency funds are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2017 on our consideration of the Pasco County, Florida Tax Collector’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Tax Collector’s internal control over financial reporting and compliance.


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PASCO COUNTY, FLORIDATAX COLLECTOR

Balance Sheet – General Fund

September 30, 2016

Assets

Cash and cash equivalents $ 2,493,834 Due from other funds 39,960 Due from other governments 30,572 Deposits 10,026



Liabilities:Accrued liabilities $ 820,122 Due to Pasco County, Florida Board of County Commissioners 1,603,362 Due to other governments 150,908

Total liabilities 2,574,392

Fund balance: —

Total liabilities and fund balance $ 2,574,392


4


Statement of Revenues, Expenditures, and Changesin Fund Balance – General Fund


Revenues:Commissions:

Pasco County, Florida Board of County Commissioners $ 7,558,406 Other governmental units 1,187,554

Charges for services 5,053,981 Interest 5,117



Personnel services 10,134,595 Operating 1,372,021

Capital outlay 544,172

Total expenditures 12,050,788

Excess of revenues over expenditures 1,754,270

Other financing sources (uses):Transfers out:

Distribution of excess commissions to Pasco County, Florida Board of CountyCommissioners (1,603,362)

Distribution of excess commissions to other governmental units (150,908)

Total other financing sources (uses) (1,754,270)

Excess of revenues over expenditures and other financing sources (uses) —

Fund balance – beginning of year



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Statement of Revenues, Expenditures, and Changesin Fund Balance – Budget and Actual – General Fund


Budget Variance withOriginal Final Actual final budget

Revenues:Commissions:

Pasco County, Florida Board ofCounty Commissioners $ 7,250,000 7,250,000 7,558,406 308,406

Other governmental units 1,150,000 1,150,000 1,187,554 37,554 Charges for services 4,263,560 4,263,560 5,053,981 790,421 Interest 5,000 5,000 5,117 117

Total revenues 12,668,560 12,668,560 13,805,058 1,136,498


Personnel services 10,229,484 10,134,805 10,134,595 (210) Operating 1,278,597 1,373,276 1,372,021 (1,255)

Capital outlay — 544,172 544,172 —

Total expenditures 11,508,081 12,052,253 12,050,788 (1,465)

Excess of revenues overexpenditures 1,160,479 616,307 1,754,270 1,137,963

Other financing sources (uses):Transfers out:

Distribution of excess commissions toPasco County, Florida Board of CountyCommissioners (1,056,036) (560,839) (1,603,362) (1,042,523)

Distribution of excess commissions toother governmental units (104,443) (55,468) (150,908) (95,440)

Total other financing sources (uses) (1,160,479) (616,307) (1,754,270) (1,137,963)

Excess of revenues overexpenditures and otherfinancing sources (uses) $ — — — —




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Balance Sheet – Agency Funds

September 30, 2016

Assets

Cash and cash equivalents $ 5,341,414 Investments 1,001,516 Due from other funds 10,410


Liabilities

Due to Pasco County, Florida Board of County Commissioners $ 233,290 Due to individuals 938,407 Due to other funds 50,370 Due to other constitutional officers 8 Due to other governments 5,131,265

Total liabilities $ 6,353,340




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The Pasco County, Florida Tax Collector (Tax Collector) is an elected constitutional officer as provided for by the Constitution of the State of Florida. Pursuant to Chapter 195.087, Florida Statutes, the Tax Collector’s budget is submitted to the Florida Department of Revenue for approval and a copy is forwarded to the Pasco County, Florida Board of County Commissioners (the Board).

As an elected official of Pasco County, Florida (the County), the Tax Collector is charged with responsibility for the collection of ad valorem taxes levied by the County, the School Board, special taxing districts, municipalities, and other taxes and fees levied by the County. The office is funded by commissions charged based on the amount of collections. Additionally, the Tax Collector performs services for various state agencies. The following are the State of Florida agencies for which the Tax Collector collects fees:

Department of Highway Safety and Motor Vehicles – serves as agent for the Division of Motor Vehicles, processes title applications and transfers, renews and issues license plates and decals, processes transfers of boat titles, and registers both pleasure and commercial boats on an annual basis. The Tax Collector also serves as agent for the Division of Drivers Licenses.

Department of Revenue – collects sales tax on vessels, motor vehicles, and Lemon Law fees.

Florida Fish and Wildlife Conservation Commission – issues hunting and fishing permits and licenses.

Department of Agriculture – issues concealed weapon permits (new and renewals).

Pasco County Department of Health – issues Florida native born official birth certificates.

The financial statements presented include the general fund and agency funds of the Tax Collector’s office. The accompanying financial statements were prepared for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for Local Governmental Entity Audits.

Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires the Tax Collector to only present fund financial statements. Accordingly, due to the omission of government-wide financial statements and related disclosures, including a management’s discussion and analysis, these financial statements do not constitute a complete presentation of the financial position of the Tax Collector as of September 30, 2016 and the changes in its financial position for the year then ended in conformity with Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, but otherwise constitute financial statements prepared in conformity with U.S. generally accepted accounting principles.



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The financial activities of the Tax Collector, as a constitutional officer, are included in Pasco County, Florida’s Comprehensive Annual Financial Report.

(b) Measurement Focus, Basis of Accounting, and Basis of Presentation Fund financial statements report detailed information about the Tax Collector’s operations. The focus of governmental fund financial statements is on major funds rather than reporting funds by type.

Governmental Funds Governmental funds are accounted for using the flow of current financial resources measurement focus. Only current assets and current liabilities are generally included on the balance sheet. Operating statements for these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The Tax Collector’s only governmental fund is the general fund. The general fund is used to account for the general operations of the Tax Collector’s office and includes all transactions that are not accounted for in another fund.

The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become measurable and available to finance liabilities of the current fiscal year). For this purpose, the Tax Collector considers revenues to be available if they are collected within 60 days of the end of the current period. Expenditures are recorded when the related fund liability is incurred, except for certain compensated absences, which are recognized as expenditures to the extent they have matured.

A significant amount of the Tax Collector’s revenue is received from taxing authorities. These monies are virtually unrestricted and are revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenue at the time of receipt; earlier if the “susceptible to accrual” criteria are met.

Interest income is recognized when earned and becomes measurable and available to pay liabilities of the current period.

Florida Statutes provide that the amount by which revenues and transfers exceed annual expenditures be remitted to the Board immediately following the fiscal year for which the funding was provided or following the fiscal year during which revenue was recognized.

Florida Statutes further provide that the excess of revenues over expenditures held by the Tax Collector be distributed to each governmental agency in the same proportion as the commissions and fees paid by each governmental agency bear to total commission and fee revenue. The amounts of these distributions are recorded as liabilities and as other financing uses in the accompanying financial statements.



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Capital outlays expended in the general fund are capitalized in the basic financial statements of the Board rather than in governmental funds of the Tax Collector.

Fiduciary Funds Agency Funds – These funds are used to account for assets held by the Tax Collector in a trustee capacity or as an agent for individuals, private organizations, and other governments. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting.

(c) Cash Equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less. Cash equivalents of $3,507,298 at September 30, 2016 consist of money market funds, $1,455,207 of which is recorded within the General Fund and $2,052,091 of which is recorded within the Agency Fund.

(d) Investments The Tax Collector participates in the Florida Fixed Income Trust Fund (the Fund), which is a preferred deposit fund consisting of money market funds carried at amortized cost to maintain a constant net asset value (NAV) of $1.00. The Fund was formed through indenture of trust pursuant to Florida Statutes, Sections 163.01 and 218.415.

(e) Compensated Absences All full-time employees of the Tax Collector are entitled to annual leave and medical leave with pay. The employees are generally allowed to accumulate annual leave up to a maximum of 360 hours and medical leave without limit. Upon termination, the employee is paid for up to one-fourth of accumulated medical leave, depending on length of service, not to exceed 100 hours, and all of the accumulated annual leave. Annual leave and medical leave payments are included in personnel services when the payments are made to the employees. The liability for compensated absences is not reported in the general fund but rather is reported in the basic financial statements of the Board.

(f) Use of Estimates The preparation of the financial statements in accordance with U.S. generally accepted accounting principles requires management of the Tax Collector to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

(g) Reclassifications Certain 2015 amounts have been reclassified to conform to the 2016 financial statement presentation.



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(h) Accounting Standards During the fiscal year ended September 30, 2016, the Tax Collector adopted GASB Statement Number 72, Fair Value Measurement and Application, which addresses accounting and financial reporting issues related to fair value measurements.

(2) Property Taxes Taxes in Pasco County are levied by the Board and other taxing authorities. The millage levies are determined on the basis of estimates of revenue needs and the total taxable valuations within the jurisdiction of the Board and other taxing authorities. No aggregate ad valorem tax millage in excess of 10 mills on the dollar can be levied by the Board against property in the County as specified in Section 200.071, Florida Statutes.

Each year the total taxable property valuation is established by the Pasco County Property Appraiser, and the list of property assessments is submitted to the State Department of Revenue for approval. Taxes, assessed as of January 1 of each year, are due and payable on November 1 of each year or as soon thereafter as the assessment roll is opened for collection. Pursuant to Florida law, all owners of property have the responsibility of ascertaining the amount due and paying it before April 1 of the year following the year in which the tax was assessed.

Chapter 197, Florida Statutes, governs property tax collections.

(a) Current Taxes All property taxes become due and payable on November 1 and are delinquent on April 1 of the following year. Discounts are allowed for early payment of 4% in November, 3% in December, 2% in January, and 1% in February.

(b) Unpaid Taxes – Sale of Tax Certificates The Tax Collector advertises, as required by Florida Statutes, and sells tax certificates on all real property for unpaid taxes. The tax receivable is struck off the tax roll to the person who purchased the tax certificate and has paid the taxes. Certificates not sold are transferred to the County. The Tax Collector must receive payment before the certificates are recorded. Any person owning land upon which a tax certificate has been sold may redeem the tax certificate by paying the Tax Collector the face amount of the tax certificate plus interest and other costs.

(c) Tax Deeds Two years after the purchase of a tax certificate, the certificate holder may file an application for tax deed sale. The County, as a certificate owner, exercises similar procedures. Tax deeds are awarded to the highest bidder for the property, which is sold at public auction by the Clerk of the Circuit Court.

(3) Budgetary Process Section 195.087, Florida Statutes, governs the preparation, adoption, and administration of the Tax Collector’s annual budget. The Tax Collector prepares a budget for the general fund and submits it to the Florida Department of Revenue for approval. Any subsequent amendments to the total budget must be approved by the Florida Department of Revenue. The budget is prepared on a basis consistent with



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U.S. generally accepted accounting principles. The annual budget serves as the legal authorization for expenditures. Expenditures may not legally exceed appropriations at the fund level. Appropriations lapse at year-end. Budgetary control is maintained at the departmental major object expenditure level. Budgetary changes within major object expenditure categories are made at the discretion of the Tax Collector.

The original budget is the first complete appropriated budget. The final budget is the original budget adjusted for all reserves, transfers, allocations, supplemental appropriations, and other legally authorized changes applicable to the fiscal year, whenever legally authorized.

(4) Cash, Cash Equivalents, and Investments As of September 30, 2016, the Tax Collector had the following cash, cash equivalents, and investments:

Carrying CreditType value rating Maturities

Cash and cash equivalents:Cash on hand $ 20,675 N/A N/ADemand deposits 4,307,275 N/A N/AMoney market funds 3,507,298 AAAm N/A

Total cash and cashequivalents 7,835,248

Investments:Florida Fixed Income Trust 1,001,516 Unrated 1 day

Total cash, cash equivalents,and investments $ 8,836,764

Such amounts are reported as $2,493,834 and $6,342,930 in the general fund and agency funds, respectively.

(a) Fair Value Measurement As required by Governmental Accounting Standards Board Statement No. 72, Fair Value Measurement and Application, the Tax Collector categorizes its assets and liabilities carried at fair value within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

The Tax Collector has no assets or liabilities that are carried at fair value that are subject to the leveling disclosures.



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(b) Custodial Credit Risk At September 30, 2016, the Tax Collector’s deposits were entirely covered by federal depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida Statutes. Under this Chapter, in the event of default by a participating financial institution (a qualified public depository), all participating institutions are obligated to reimburse the governmental entity for the loss.

(c) Interest Rate Risk The Tax Collector has no specific investment policy regarding interest rate risk.

(d) Credit Risk The Tax Collector has no written investment policy and therefore follows the guidance in Section 219.075, Florida Statutes, regarding the deposit of funds received and the investment of surplus funds. Sections 219.075 and 218.415, Florida Statutes, authorize the Tax Collector to invest in the Local Government Surplus Funds Trust Fund or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; Securities and Exchange Commission registered money market funds with the highest credit quality ratings from a nationally recognized rating agency; and direct obligations of the U.S. Treasury. Additionally, Florida Statutes allow local governments to place public funds in interest-bearing time deposits or savings accounts in qualified public depositories that participate in a collateral pool under the Florida Security for Public Deposits Act (Section 280.02 Florida Statutes). The pool is administered by the State Treasurer, who may make additional assessments to ensure that no public funds will be lost.

(5) Capital Assets Capital assets used by the Tax Collector are reported in the basic financial statements of the Board rather than in the governmental funds of the Tax Collector. Upon acquisition, such assets are recorded as expenditures in the general fund of the Tax Collector and are capitalized in the basic financial statements of the Board. Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, if any, are valued at their estimated fair value on the date received. The Tax Collector maintains custodial responsibility for the capital assets used by the office. No depreciation expense has been provided on capital assets in these financial statements. However, depreciation expense on these assets is recorded in the basic financial statements of the Board.

(6) Long-Term Liabilities The following is a summary of changes in general long-term liabilities which are reported in the basic financial statements of the Board:

October 1, September 30,2015 Additions Retirements 2016




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Of these liabilities, approximately $520,000 is expected to be paid during the fiscal year ending September 30, 2017. These long-term liabilities are not reported in the financial statements of the Tax Collector since they have not matured.

(7) Related-Party Transactions The Board paid commissions to the Tax Collector that amounted to $7,558,406 during the year ended September 30, 2016. At September 30, 2016, the Tax Collector had a payable due to the Board of $1,603,362, for excess commissions received. The Tax Collector also had a payable due to the Board of $233,290 for delinquent taxes and other amounts received in connection with the Tax Collection Agency fund.

(8) Florida Retirement System General Information

All of the Tax Collector’s employees participate in the Florida Retirement System (FRS). As provided by Chapters 121 and 112, Florida Statutes, the FRS provides two cost sharing, multiple employer defined benefit plans administered by the Florida Department of Management Services, Division of Retirement, including the FRS Pension Plan (Pension Plan) and the Retiree Health Insurance Subsidy (HIS Plan). Under Section 121.4501, Florida Statutes, the FRS also provides a defined contribution plan (Investment Plan) alternative to the FRS Pension Plan, which is administered by the State Board of Administration (SBA). As a general rule, membership in the FRS is compulsory for all employees working in a regularly established position for a state agency, county government, district school board, state university, community college, or a participating city or special district within the State of Florida. The FRS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefits are established by Chapter 121, Florida Statutes, and Chapter 60S, Florida Administrative Code. Amendments to the law can be made only by an act of the Florida State Legislature.




The Pension Plan is a cost sharing, multiple employer defined benefit pension plan, with a Deferred Retirement Option Program (DROP) for eligible employees.


Benefits under the Pension Plan are computed on the basis of age, average final compensation, and service credit. For Pension Plan members enrolled before July 1, 2011, Regular class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to



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1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Vested members with less than 30 years of service may retire before age 62 and receive reduced retirement benefits. Special Risk Administrative Support class members who retire at or after age 55 with at least six years of credited service or 25 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 1.6% of their final average compensation based on the five highest years of salary, for each year of credited service. Special Risk class members (sworn law enforcement officers, firefighters, and correctional officers) who retire at or after age 55 with at least six years of credited service, or with 25 years of service regardless of age, are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service. Senior Management Service class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 2.0% of their final average compensation based on the five highest years of salary for each year of credited service. Elected Officers’ class members who retire at or after age 62 with at least six years of credited service or 30 years of service regardless of age are entitled to a retirement benefit payable monthly for life, equal to 3.0% of their final average compensation based on the five highest years of salary for each year of credited service.

For Plan members enrolled on or after July 1, 2011, the vesting requirement is extended to eight years of credited service for all these members and normal retirement is increased to age 65 or 33 years of service regardless of age for Regular, Senior Management Service, and Elected Officers’ class members, and to age 60 or 30 years of service regardless of age for Special Risk and Special Risk Administrative Support class members. Also, the final average compensation for all these members will be based on the eight highest years of salary.

As provided in Section 121.101, Florida Statutes, if the member is initially enrolled in the Pension Plan before July 1, 2011, and all service credit was accrued before July 1, 2011, the annual cost of living adjustment is three percent per year. If the member is initially enrolled before July 1, 2011, and has service credit on or after July 1, 2011, there is an individually calculated cost of living adjustment. The annual cost of living adjustment is a proportion of three percent determined by dividing the sum of the pre July 2011 service credit by the total service credit at retirement multiplied by three percent. Plan members initially enrolled on or after July 1, 2011, will not have a cost of living adjustment after retirement.


(iii) Contributions

Effective July 1, 2011, all enrolled members of the FRS, other than DROP participants, are required to contribute three percent of their salary to the FRS. In addition to member contributions, governmental employers are required to make contributions to the FRS based on



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the blended state wide contribution rates established by the Florida Legislature. These rates are updated as of July 1 of each year. The employer contribution rates by job class for the periods from October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016, respectively, were as follows: Regular – 7.26% and 7.52%; Special Risk Administrative Support – 32.95% and 28.06%; Special Risk – 22.04% and 22.57%; Senior Management Service – 21.43% and 21.77%; Elected Officers’ – 42.27% and 42.47%; and DROP participants – 12.88% and 12.99%. These employer contribution rates include a HIS Plan subsidy of 1.66% for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016.

The Tax Collector’s contributions, excluding employee contributions, to the Pension Plan totaled approximately $421,000 for the fiscal year ended September 30, 2016.


At September 30, 2016, the Tax Collector reported a payable in the amount of $88,095 for outstanding contributions to the Pension Plan required for the fiscal year ended September 30, 2016. Such amounts are recorded as accrued liabilities in the accompanying balance sheet – general fund.


The HIS Plan is a cost sharing multiple employer defined benefit pension plan established under Section 112.363, Florida Statutes, and may be amended by the Florida legislature at any time. The benefit is a monthly payment to assist retirees of State administered retirement systems in paying their health insurance costs and is administered by the Florida Department of Management Services, Division of Retirement.


For the fiscal year ended September 30, 2016, eligible retirees and beneficiaries received a monthly HIS payment of $5 for each year of creditable service completed at the time of retirement, with a minimum HIS payment of $30 and a maximum HIS payment of $150 per month. To be eligible to receive these benefits, a retiree under a State administered retirement system must provide proof of health insurance coverage, which may include Medicare.

(iii) Contributions

The HIS Plan is funded by required contributions from FRS participating employers as set by the Florida Legislature. Employer contributions are a percentage of gross compensation for all active FRS members. For the fiscal year ended September 30, 2016, the HIS contribution for both the periods October 1, 2015 through June 30, 2016 and from July 1, 2016 through September 30, 2016 was 1.66%. The Tax Collector contributed 100% of its statutorily required contributions for the current year. HIS Plan contributions are deposited in a separate trust fund from which payments are authorized. HIS Plan benefits are not guaranteed and are subject to annual legislative appropriation. In the event legislative appropriation or available funds fail to provide full subsidy benefits to all participants, benefits may be reduced or cancelled.



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The Board makes contributions to the HIS Plan on behalf of the Tax Collector.


As provided in Section 121.4501, Florida Statutes, eligible FRS members may elect to participate in the Investment Plan in lieu of the FRS defined benefit plan. County employees participating in DROP are not eligible to participate in the Investment Plan. Employer and employee contributions, including amounts contributed to individual member’s accounts, are defined by law, but the ultimate benefit depends in part on the performance of investment funds. Benefit terms, including contribution requirements, for the Investment Plan are established and may be amended by the Florida Legislature. The Investment Plan is funded with the same employer and employee contribution rates that are based on salary and membership class (Regular Class, Elected County Officers, etc.), as the Pension Plan. Contributions are directed to individual member accounts, and the individual members allocate contributions and account balances among various approved investment choices. Costs of administering the Investment Plan, including the FRS Financial Guidance Program, are funded through an employer contribution of 0.06% of payroll and by forfeited benefits of plan members. Allocations to the investment member’s accounts during the fiscal year ended September 30, 2016, as established by Section 121.72, Florida Statutes, are based on a percentage of gross compensation, by class, as follows: Regular Class – 6.30%, Special Risk Administrative Support Class – 7.95%, Special Risk Class – 14.00%, Senior Management Service Class – 7.67%, and County Elected Officers Class – 11.34%.

For all membership classes, employees are immediately vested in their own contributions and are vested after one year of service for employer contributions and investment earnings. If an accumulated benefit obligation for service credit originally earned under the Pension Plan is transferred to the Investment Plan, the member must have the years of service required for Pension Plan vesting (including the service credit represented by the transferred funds) to be vested for these funds and the earnings on the funds. Nonvested employer contributions are placed in a suspense account for up to five years. If the employee returns to FRS covered employment within the five year period, the employee will regain control over their account. If the employee does not return within the five year period, the employee will forfeit the accumulated account balance. For the fiscal year ended September 30, 2016, the information for the amount of forfeitures was unavailable from the SBA; however, management believes that these amounts, if any, would be immaterial.

After termination and applying to receive benefits, the member may rollover vested funds to another qualified plan, structure a periodic payment under the Investment Plan, receive a lump sum distribution, leave the funds invested for future distribution, or any combination of these options. Disability coverage is provided; the member may either transfer the account balance to the Pension Plan when approved for disability retirement to receive guaranteed lifetime monthly benefits under the Pension Plan, or remain in the Investment Plan and rely upon that account balance for retirement income.



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The Tax Collector’s Investment Plan pension expense totaled approximately $191,000 for the fiscal year ended September 30, 2016.

As required by GASB Statement No. 68, Accounting and Financial Reporting for Pensions, liabilities related to the Tax Collector’s participation in the Pension and HIS Plans are reported in the government wide financial statements of the Board.

(9) Other Post Employment Benefits The Tax Collector provides post retirement health care benefits in accordance with Section 110.123, Florida Statutes, to all employees who retire from the employment of the Tax Collector. To be eligible for post retirement health care benefits, the retiree must have at least six years of service. Retirees with more than six years of service, but less than 30 years of service pay 100% of the premium cost to receive post retirement health care benefits. Retirees with 30 or more years of service do not pay a premium to receive post retirement health care benefits; however, they surrender their monthly state subsidy of $150 per month. As required by GASB Statement No. 45 (GASB 45), Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions, liabilities and activities related to these benefits are reported in the government-wide financial statements of the Board.

(10) Risk Management Pasco County (the County) is exposed to various risks of loss, including but not limited to general liability, auto liability, and workers’ compensation. The County is substantially self-insured and accounts for and finances its risks of uninsured loss through an internal service fund. The Tax Collector participates in the County’s risk management program. All liabilities associated with these self-insured risks are reported in the basic financial statements of the Board.

The County has general liability insurance with $500,000 retention per claim with $1,000,000 retention limit per occurrence and $2,000,000 aggregate. Negligence claims in excess of the statutory limits set in Section 768.28, Florida Statutes, which provide for limited sovereign immunity of $100,000/$200,000 per occurrence, can only be recovered through an act of the State Legislature. Effective October 1, 2011, sovereign immunity limits were increased to $200,000 per claim and $300,000 per occurrence for claims incurred after that date. The County had workers’ compensation insurance with a $650,000 deductible per occurrence for police/fire, and a $500,000 deductible per occurrence for all others. Settlements have not exceeded coverage in any of the past three fiscal years. All liabilities associated with these self–insured risks are reported in the basic financial statements of the County.


Agency Funds September 30, 2016

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(11) Lease Commitments The Tax Collector leases certain office facilities, under noncancelable operating leases, which are utilized solely by the Tax Collector. The commitments under these lease agreements provide for aggregate minimum annual rental payments as follows:

Fiscal years:2017 $ 125,761 2018 128,601 2019 131,830 2020 135,155 2021 138,579 2022 through 2024 409,008

$ 1,068,934

Rental expense for all operating leases aggregated $58,498 for the year ended September 30, 2016. There were no contingent rentals or sublease rentals associated with the leases in effect at September 30, 2016.

(12) Litigation The Tax Collector is involved as defendant or plaintiff in certain litigation and claims arising from the ordinary course of operations. Any judgments against the Tax Collector would be settled by the Board. In the opinion of the Tax Collector and legal counsel, the range of potential recoveries or liabilities will not materially affect the financial position of the Tax Collector.


Agency Funds September 30, 2016

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Agency Funds are used to account for assets held by a governmental unit as trustee or agent for individuals, private organizations, and other governmental units.

Tax Collection Fund – This fund is used to account for the receipt and distribution of ad valorem taxes, hunting and fishing licenses, and permits collected for Pasco County and other independent taxing authorities.

Motor Vehicle Fund – This fund is used to account for the receipt and distribution of moneys collected for motor vehicle registrations, titles, sales tax, and driver licenses.

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Combining Balance Sheet – Agency Funds

September 30, 2016

Tax MotorCollection Vehicle

Assets Fund Fund Total

Cash and cash equivalents $ 4,485,136 856,278 5,341,414 Investments 1,001,516 — 1,001,516 Due from other funds 10,410 — 10,410

Total assets $ 5,497,062 856,278 6,353,340

Liabilities

Due to Pasco County, Florida Board of CountyCommissinoers $ 233,290 — 233,290

Due to individuals 931,512 6,895 938,407 Due to other funds 41,653 8,717 50,370 Due to other constitutional officers — 8 8 Due to other governments 4,290,607 840,658 5,131,265

Total liabilities $ 5,497,062 856,278 6,353,340


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Combining Statement of Changes in Assetsand Liabilities – Agency Funds


Balance, Balance,October 1, September 30,

Tax Collection Fund 2015 Additions Deductions 2016

Assets:Cash and cash equivalents $ 3,222,854 690,722,483 689,460,201 4,485,136 Investments 2,000,923 127,307,709 128,307,116 1,001,516 Due from other funds — 10,410 — 10,410

Total assets $ 5,223,777 818,040,602 817,767,317 5,497,062

Liabilities:Due to Pasco County, Florida Board of

County Commissioners $ 102,622 216,449,979 216,319,311 233,290 Due to individuals 1,219,789 19,186,740 19,475,017 931,512 Due to other funds 61,535 229,560 249,442 41,653 Due to other governments 3,839,831 304,381,539 303,930,763 4,290,607

Total liabilities $ 5,223,777 540,247,818 539,974,533 5,497,062

Motor Vehicle Fund

Assets:Cash and cash equivalents $ 1,052,773 54,507,896 54,704,391 856,278

Total assets $ 1,052,773 54,507,896 54,704,391 856,278

Liabilities:Due to individuals $ 8,339 281,448 282,892 6,895 Due to other funds 182,953 4,014,934 4,189,170 8,717 Due to other constitutional officers 8 159 159 8 Due to other governments 861,473 52,334,338 52,355,153 840,658

Total liabilities $ 1,052,773 56,630,879 56,827,374 856,278

Total – All Agency Funds

Assets:Cash and cash equivalents $ 4,275,627 745,230,379 744,164,592 5,341,414 Investments 2,000,923 127,307,709 128,307,116 1,001,516 Due from other funds — 10,410 — 10,410

Total assets $ 6,276,550 872,548,498 872,471,708 6,353,340

Liabilities:Due to Pasco County, Florida Board of

County Commissioners $ 102,622 216,449,979 216,319,311 233,290 Due to individuals 1,228,128 19,468,188 19,757,909 938,407 Due to other funds 244,488 4,244,494 4,438,612 50,370 Due to other constitutional officers 8 159 159 8 Due to other governments 4,701,304 356,715,877 356,285,916 5,131,265

Total liabilities $ 6,276,550 596,878,697 596,801,907 6,353,340


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Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed

in Accordance with Government Auditing Standards


We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the general fund and the aggregate remaining fund information of the Pasco County, Florida Tax Collector as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Pasco County, Florida Tax Collector’s basic financial statements, and have issued our report thereon dated April 28, 2017 which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified with respect to this matter.

Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Pasco County, Florida Tax Collector’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Pasco County, Florida Tax Collector’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Pasco County, Florida Tax Collector’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to warrant attention by those charged with governance.


Compliance and Other Matters As part of obtaining reasonable assurance about whether the Pasco County, Florida Tax Collector’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.



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Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Pasco County, Florida Tax Collector’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County, Florida Tax Collector’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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Management Letter


We have audited the financial statements of the general fund and the aggregate remaining fund information of the Pasco County, Florida Tax Collector as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated April 28, 2017, which contains an emphasis of matter to refer to a basis of accounting required for compliance with state filing requirements, however, our report was not modified with respect to this matter.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have also issued our report dated April 28, 2017 on our consideration of the Pasco County, Florida Tax Collector’s internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with the provision of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida, and require that certain items be addressed in this letter.

Prior Audit Findings The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit.

Other Matters The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we address in the management letter, if not already addressed in the auditors’ report on internal control over financial reporting and on compliance and other matters, any recommendations to improve the Pasco County, Florida Tax Collector’s financial management. In connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management letter, if not already addressed in the auditors' report on internal control over financial reporting and on compliance and other matters, any noncompliance with the provisions of contracts or grant agreements, or abuse that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any such findings.

Official Title and Legal Authority The Rules of the Auditor General, Section 10.554(1)(i)(4), require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. In that regard, the Pasco



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County, Florida Tax Collector was established by the Constitution of the State of Florida, Article VIII, Section 1(d). The Pasco County, Florida Tax Collector does not have any component units.

Purpose of this Letter This management letter is intended solely for the information of the Pasco County, Florida Tax Collector, management, the Board of County Commissioners of Pasco County, Florida, and the Auditor General of the State of Florida, and is not intended to be and should not be used by anyone other than these specified parties.


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We have examined the Pasco County, Florida Tax Collector’s compliance with Section 218.415, Florida Statutes as of September 30, 2016. Management is responsible for the Pasco County, Florida Tax Collector’s compliance with those requirements. Our responsibility is to express an opinion on the Pasco County, Florida Tax Collector’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Pasco County, Florida Tax Collector’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Pasco County, Florida Tax Collector’s compliance with specified requirements.

In our opinion, the Pasco County, Florida Tax Collector complied, in all material respects, with the aforementioned requirements as of September 30, 2016.




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