HomeMy WebLinkAboutSchool District of Marion County - Public Financial Report
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TABLE OF CONTENTS
Please click on the title to be taken directly to the related section.
Message from the Chief Financial Officer ___________________________________ 3
School Board Members _________________________________________________ 4
About Marion County Public Schools ______________________________________ 5
Financial Summary _____________________________________________________ 8
Accounting and Reporting ______________________________________________ 10
Where The Money Comes From _________________________________________ 11
How the Money is Spent _______________________________________________ 14
Fund Balance – General Fund ___________________________________________ 16
Long Term Debt ______________________________________________________ 17
Capital Assets ________________________________________________________ 18
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MESSAGE FROM THE CHIEF FINANCIAL OFFICER
Dear Citizens and Taxpayers of Marion County:
Business Services is pleased to present Marion County Public School’s
Popular Annual Financial Report (Citizen’s Report) for the community.
This report is an opportunity to present the District’s finances in a more
condensed format. We hope this provides an understanding of the basic
financial health and operations of our District.
The intention of this report is to summarize the financial activities and
operating results reported in Marion County Public School’s audited Annual Comprehensive Financial
Report (ACFR). The ACFR is a more detailed and complete financial presentation prepared in
accordance with Generally Accepted Accounting Principles (GAAP) and was audited by the District’s
independent external auditors. The Citizen’s Report, however, is unaudited and presented on a non-
GAAP basis. It does not include full disclosures or segregated funds. For more detailed information,
the Annual Comprehensive Financial Report is available by clicking on the District’s website below at:
https://www.marionschools.net/Page/71511.
If you have any questions regarding this report, please contact Valerie Brown (352) 671-7713, or write
to: Director of Finance, 406 SE Alvarez Avenue, Ocala, FL 34471-2241.
Respectfully,
Theresa Boston-Ellis,
Chief Financial Officer
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SCHOOL BOARD MEMBERS AS OF JUNE 30, 2021
During the 2020-2021 fiscal year, the position for District 2 became vacant.
School Board Commitment Statement
We are the Marion County Leadership Team. If we chose one word to describe us, it would be student-
centered because student success is our mission. When we come together to work, we are efficient,
effective and relevant. Our three most important characteristics are dedicated, diverse, and dynamic.
To work well together we must demonstrate respect, confront reality, clarify expectations and get
better. We do not accept excuses. We will not accept mediocrity. We will always put students first. We
will leave a legacy of success.
Business Service’s Mission
To serve as stewards of Marion County’s resources; to provide outstanding financial services; and to
provide guidance, advice and recommendations for best practices in accordance with Board policies,
Florida Statutes, and Federal regulations.
Mrs. Nancy Thrower
School Board Chair, District 4
Mrs. Kelly King
Vice-Chair, District 5
Mrs. Allison Campbell
Member, District 1
Mr. Eric Cummings
Member, District 3
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ABOUT MARION COUNTY PUBLIC SCHOOLS
The School Board of Marion County, Florida, is generally referred to as Marion County Public Schools
(MCPS). It is an independent taxing and reporting entity managed, controlled, operated, administered
and supervised by District school officials in accordance with Chapter 1001, Florida Statutes. The
School Board is comprised of a five-member board elected on staggered terms in a county-wide
election. The School Board is the policy making and legislative authority for the school district. It is
responsible for the organization and control of the district’s public schools, determining policy,
adopting budget and other matters related to the effective operation and general improvement of the
school system. The Superintendent is responsible for the administration and management of the
schools within the applicable parameters of state laws, State Board of Education Rules, and School
Board Policies.
Dr. Diane Gullett
Superintendent
In 2018, Marion County voters approved that school board members could now appoint superintendents
instead of being elected. Dr. Diane Gullett is the first appointed superintendent for Marion County Public
Schools.
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ABOUT MARION COUNTY PUBLIC SCHOOLS
The geographic boundaries of the District are the same as those of Marion County. The county covers
1,663 square miles and is one of the largest counties in Florida.
There are 33 elementary schools, 8 middle schools, 2 K-8
schools, 7 high schools, and 12 other specialty schools and
programs. As of June 2021, we have 5,951 full-time
employees and a student population that totaled 41,324 at
the 180 day count.
The mission of our district is to empower every student to
become a life-long learner who possesses the requisite skills
and attitudes to be a responsible, productive and engaged citizen.
Award for Outstanding Achievement in Popular Annual Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding
Achievement in Popular Annual Financial Reporting to the Marion County District School Board for its PAFR for the fiscal
year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious
national award-recognizing conformance with the highest standards for
preparation of state and local government popular reports.
In order to receive an Award for Outstanding Achievement in Popular
Annual Financial Reporting, a government must publish a PAFR, whose
contents conform to program standards of creativity, presentation,
understandability and reader appeal.
An Award for Outstanding Achievement in Popular Annual Financial
Reporting is valid for a period of one year only. We believe our current
report continues to conform to the Popular Annual Financial Reporting
requirements, and we are submitting it to the GFOA. This was the second
year the District has received the award.
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ABOUT MARION COUNTY PUBLIC SCHOOLS
The Florida Standards Assessment (FSA) measures student achievement and is divided into 5
performance levels. Levels 3 and above is considered satisfactory and is usually required for graduation.
Percentages of students with test scores that were at a level 3 or above for 10th grade English Language
Arts (ELA) with similar size counties are shown below:
13 schools requested an “opt-in” to receive a letter grade for the 2020-2021 school year and of those,
4 earned a grade of “A”, 2 earned a grade of “B” and 7 earned a grade of “C”.
During the first two weeks of 2021 Summer School, Food Service workers served more than 65,000
meals and snacks – all free to students.
Marion County Public Schools finished the 2020-21 school year with nearly 90% of students in brick-
and-mortar classrooms and the average daily attendance was 90.2%.
In 2020-21, employee salaries and benefits accounted for 82% of the district’s $651 million-dollar
budget.
38
40
42
44
46
48
50
2016 2017 2018 2019 2021
10th Grade ELA Scores -Percentage of Students
at Level 3 or Above
ESCAMBIA COUNTY LAKE COUNTY MARION COUNTY
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FINANCIAL SUMMARY
Government-wide Financial Information
The Government-wide financial statements include the Statement of Net Position and the Statement
of Activities. This information is designed to provide readers with a long-term overview of the District’s
finances similar to the private sector. All governmental funds are consolidated and presented as
Governmental Activities which are normally supported by taxes and intergovernmental revenues.
The Statement of Net Position (below) provides information on all of Marion County Public School’s
assets and liabilities, with the difference between the two reported as net position or “net worth”.
Increases or decreases in the net position serves as an indicator of whether the financial position of
the District is improving or declining. Component Units (charter schools and the Public Education
Foundation) information are not included in this financial summary.
6-30-21 (a)6-30-20
Current Assets 148,222,167$ 124,791,636$
Capital Assets, Net of Depreciation 510,085,358 510,896,722
Total Assets 658,307,525 635,688,358
Deferred Outflows of Resources 99,269,297 88,555,243
Current Liabilities 20,977,001 15,661,340
Noncurrent Liabilities 421,156,480 387,171,421
Total Liabilities 442,133,481 402,832,761
Deferred Inflows of Resources 20,362,710 28,861,036
Net Position:
Net Investment in Capital Assets 447,024,967 436,909,134
Restricted 55,197,063 53,631,332
Unrestricted (Deficit)(207,141,399) (197,990,662)
Total Net Position 295,080,631$ 292,549,804$
Net Position, End of Year
Governmental Activities
(a) Beginning net position was restated for a change in accounting principle.
The District has a reported deficit unrestricted net position due to long-term liabilities such as Other
Post-Employment Benefits and Pension Liabilities but has financially improved from the previous
year.
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FINANCIAL SUMMARY
Government-wide Financial Information
The Statement of Activities (below) provides information on all of MCPS’s revenues and expenditures,
with the difference between the two reported as net position or “net worth”. Increases or decreases
in the net position serves as an indicator of whether the financial position of the District is improving
or declining. Component Units (charter schools and the Public Education Foundation) information
are not included in this financial summary.
6-30-21 6-30-20
Program Revenues:
Charges for Services 7,230,747$ 8,079,496$
Operating Grants and Contributions 23,950,096 22,108,361
Capital Grants and Contributions 1,848,385 1,982,457
General Revenues:
Property Taxes Levied for Operational Purposes 120,297,916 114,954,917
Property Taxes Levied for Capital Projects 32,691,158 30,332,362
Grants and Contributions Not Restricted
to Specific Programs 285,889,161 267,735,554
Unrestricted Investment Earnings 332,416 2,800,887
Miscellaneous 5,987,298 5,978,721
Total Revenues 478,227,177 453,972,755
Functions/Program Expenses:
Instruction 274,724,517 268,339,463
Student Personnel Services 33,080,645 32,023,172
Instructional Media Services 4,719,476 4,983,809
Instruction and Curriculum Development 7,986,796 7,766,711
Instructional Staff Training Services 10,579,815 10,953,527
Instruction Related Technology 2,686,068 2,696,383
Board of Education 819,394 1,116,072
General Administration 3,667,305 3,454,028
School Administration 23,977,751 23,974,881
Facility Services 874,759 4,474,895
Fiscal Services 3,883,438 3,447,126
Food Services 26,381,209 27,592,616
Central Services 5,695,528 5,606,928
Student Transportation Services 21,926,717 22,628,422
Operation of Plant 31,045,173 29,457,066
Maintenance of Plant 10,726,118 11,241,356
Administrative Technology Services 5,381,432 5,171,426
Community Services 8,014,579 5,569,166
Unallocated Interest on Long-Term Debt 2,286,926 2,674,342
Total Functions/Program Expenses 478,457,646 473,171,389
Decrease in Net Position (230,469) (19,198,634)
Net Position - Beginning 292,549,804 311,748,438 Adjustment to Restate Beginning Net Position 2,761,296
Net Position - Beginning - Restated 295,311,100 311,748,438 Net Position - Ending 295,080,631$ 292,549,804$
Governmental Activities
Operating Results for the Fiscal Year Ended
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ACCOUNTING AND REPORTING
Budget
Under state law, the District is required to prepare an annual
budget. The budget is prepared for each governmental fund type
prescribed by law and State Board of Education rules. Original
budgets are submitted to the Florida Department of Education for
approval.
The budget is prepared by fund, function, object, and department.
Management may make budget transfers between departments
and objects and may only be amended by resolution of the Board.
The original budget is amended monthly based upon transfers at the
function and object level.
The initial Board approved budget is referred to as the original
budget. At fiscal year end, the final amended budget contains all of
the adjustments for legally authorized revisions of the original
budget throughout the year.
The district prepares a “budget to actual” comparison for School
Board review on a monthly basis.
Budgets are prepared using the modified accrual basis, which is the
method used to account for actual transactions in the governmental
funds. In modified accrual, revenue is recorded in the period it
becomes available and measureable whereas expenditures are
recognized in the period the liability is incurred.
Accounting Terminology
Net Investment in Capital Assets is the
difference between the value of capital assets
and the unpaid portion of debt that is financing
those capital assets.
Net Position is the difference between assets and deferred outflow of resources and liabilities
and deferred inflow of resources for the District as a whole. Restricted Net Position is the amount of assets or resources limited for a specific purpose. Unrestricted Net Position is the difference between assets and liabilities not already included in net investment in capital assets, and restricted net position. Government-wide is the district as a whole. Governmental Activities is the District’s basic services funded by property taxes, grants, and the Florida Education Finance Program (FEFP). Deferred Outflows of Resources are a
consumption of net position that is applicable to
a future reporting period.
Deferred Inflows of Resources are an
acquisition of net position that is applicable to a
future reporting period.
Capital Assets are assets that the District
intends to hold or continue to use over a long
period of time.
Appropriation is setting aside of budget for
specific uses.
Estimated Revenue is setting aside budget for
expected revenue.
Fund is a fiscal and accounting entity that are
segregated for the purpose of carrying on a
specific activity.
Function is a classification that indicates the
overall purpose or objective of an expenditure
such as instruction, transportation, etc.
Object is an indication of the type of goods or
services obtained as a result of the expenditure
such as salaries, benefits, and supplies.
Salaries
62%
Employee
Benefits20%
Purchased
Services
9%
Energy
Services
2%
Materials &
Supplies
4%
Capital
Outlay
2%
Other
Expenses
1%
General FundBudgeted Expenditures by Object
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WHERE THE MONEY COMES FROM
Sources of Revenue
Adequate resources are necessary in order to provide quality educational services. There are three types of
revenue sources that sustain our school district: local, state, and federal dollars. While the District utilizes other
funds that are presented in the financial statements, most of the daily operations are in the General Fund. As
such, it will be the primary focus of discussion.
Local Sources
Local revenue sources made up 36% of General Fund
revenues in fiscal year 2021; those revenues totaled $133
million. The majority of those funds, $119 million (89% of
local sources) are from Marion County property taxes.
Understanding Property Tax
Owners of residential or business real estate pay taxes to
fund services and agencies within the community --
education is just one of those services. Taxes are levied by the taxing authorities empowered by the State
Legislature. The taxable valuation of real estate or personal property is established by the County Property
Appraiser. The Florida Legislature sets the millage, or rate of taxation, for schools. Millage rate is the rate of
taxes levied based on a mill (1/10 of a cent), or one dollar per one thousand dollars of taxable value.
State Sources
State revenue sources made up 63% of General Fund revenues in fiscal year 2021; those revenues totaled $232
million. The majority of those funds, $180 million (78% of state sources) are from the Florida Education Finance
Program.
Florida Education Finance Program (FEFP)
The FEFP is a funding formula that was adopted by the Florida Legislature
in 1973 to allocate funds appropriated by the Legislature to school districts
for K-12 public school operations. The FEFP implements the constitutional
requirement for a uniform system of free public education. The funds are
allocated using a unit of measurement for each student called a “full-time
equivalent” or (FTE). In order to obtain the correct FEFP funding for each
district in the State of Florida, the Commissioner of Education annually
prescribes survey periods. For FTE reporting, the survey periods are:
• Survey Period 1 (July): Beginning of the fiscal year (July 1)
to the beginning of the 180-day school year
• Survey Period 2 (October): First 90 days of the 180-day
school year
• Survey Period 3 (February): Second 90 days of the 180-day
school year
• Survey Period 4 (June): End of the 180-day school
program to the end of the fiscal year (June 30)
$232
$133
$3
General Fund Revenue
(in millions)
State
Local
Federal
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WHERE THE MONEY COMES FROM
Federal Sources
Federal revenue sources made up 1% of General Fund revenues in fiscal year 2021; those revenues
totaled $3 million. There are two types of federal sources. Direct federal grants made up less than $1
million. Federal through state grants made up $2.2 million and are primarily received from the Florida
Department of Education.
Types of Federal Sources
The majority of federal revenue sources to the General Fund are Junior Reserve Officers’ Training Corps
(JROTC) and Medicaid revenue. The District has an agreement with the Department of Defense to
contribute a percentage of salary for retired military personnel who are hired to teach JROTC at our
high schools. Medicaid reimbursement is claimed for services provided to our Medicaid eligible
students with Individualized Education Plans (IEPs).
Total Revenues
Overall, the total amount of General Fund revenue from the three sources: local, state, and federal,
totaled $368 million for the 2021 fiscal year.
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
2019 2020 2021
$217,777,163 $227,382,513 $232,144,949
$126,584,522 $129,076,199 $133,289,146
$4,500,398 $4,121,046 $2,872,699
GENERAL FUND REVENUES BY SOURCE
State Local Federal
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WHERE THE MONEY COMES FROM
Over the last five years, revenue was in a growth pattern. The increase in revenue from 2017 to 2021
has been approximately 2.6% annually.
While there was a decrease in federal revenue sources there was an increase in total state and local
revenue sources. Regarding Categorical Programs, although we did not receive revenue for Florida
School Recognition due to letter grades not being issued, we did receive an increase in Class Size
Reduction funds. Categorical Program revenue is revenue that the state earmarks for specific uses
which cannot be used for any other purpose. An example of this type of revenue would be funds for
textbooks, transportation of students, and security.
While FTE decreased due to COVID 19 the District was held harmless by Florida Department of
Education (FDOE) and revenues actually increased.
$332 $339
$348
$360
$368
$310
$320
$330
$340
$350
$360
$370
$380
2017 2018 2019 2020 2021
GENERAL FUND REVENUE
General Fund Revenue (in millions)
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HOW THE MONEY IS SPENT
Instruction is the largest expenditure category. Students are directly impacted by this category, which
relate to direct classroom instruction.
Operation and Maintenance of Plant relate to maintenance, grounds, and custodial services of
buildings and schools.
Student Personnel Services provides administrative, technical (guidance and health) support to
facilitate and enhance instruction.
Food Services are expenditures resulting from preparing and servicing food to students.
Student Transportation Services relates to the transporting of students to and from school activities,
either between home and school, from school to school, or on trips for curricular activities.
School Administration expenditures are due to activities concerned with directing and managing the
operation of a school.
Technology Related relate to all computer and technology expenditures.
Fiscal and Central Services are expenditures concerned with the fiscal operation of the school system
and other support related service activities.
General Administration are expenditures from activities performed by operating schools and the
school system and providing the essential facilities and services for the pupils and staff.
$- $50 $100 $150 $200 $250 $300
Instruction
Operation and Maintenance of Plant
Student Personnel Services
Food Services
Student Transportation Services
School Administration
Technology Related
Fiscal and Central Services
General Administration
Interest on Long-Term Debt
Expenditures (in millions)
2021 2020 2019
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HOW THE MONEY IS SPENT
Expenditures by Object
While it is important to identify expenditures at the function level, or purpose, the object reveals the
type of goods or services received.
The expenditures for the General Fund total $364 million. Out of this amount: salaries and benefits are
$299 million or 82%; purchased services are $33 million or 9%; energy services are $9 million or 2%;
materials and supplies are $13 million or 4%; capital outlay are $6 million or 2%; and other types of
expenses are $4 million or 1% of the total expenditures.
Salaries and Benefits
In fiscal year 2021, employee compensation made up 82% of the District General Fund expenditures.
MCPS had 2,882 instructors, 204 administrators, 1,261 non-instructional and 1,604 educational
support personnel totaling 5,951 full time employees.
Purchased Services
Dollars paid for personal services delivered by people who are not on the District payroll.
Energy Services
Expenditures in this category are: natural gas, bottled gas, electricity, gasoline, and diesel fuel.
Materials and Supplies
Expenditures in this object are for items that are expendable or consumable such as: supplies, vehicle
repair parts, tires, oil, and grease.
Capital Outlay
Expenditures for acquisition or improving capital assets including buildings, land, equipment, and
motor vehicles.
Other
Items not previously classified: dues and fees or temporary personnel.
0%
20%
40%
60%
80%
100%
Percentage of
Expenditures for General
Fund
$333
$339
$353
$359 $364
$315
$320 $325
$330 $335
$340 $345 $350 $355 $360 $365 $370
2017 2018 2019 2020 2021
General Fund Expenditures
General Fund Expenditures (in millions)
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FUND BALANCE – GENERAL FUND
Fund Balance
Fund balance is the net worth of a fund measured by assets minus liabilities. At the end of each fiscal
year, the difference between revenue minus expenditures will affect fund balance. If revenue is higher,
it will increase fund balance. If expenditures are higher, it will decrease fund balance. For example,
when expenditures exceed revenue at the end of a fiscal year, cash (which is an asset) is reduced. This
results in having less assets available for use.
The General Fund fund balance has been improving over the last few years as a result of stringent fiscal
policies and keeping District expenditures in line with the goals of the District.
One-mill Referendum
On August 28, 2018, 73 percent of Marion County voters APPROVED a one-mill funding referendum
benefitting students and teachers in Marion County Public Schools.
With this approval and grateful thanks to Marion County voters, the district receives approximately
$20 million each year for the next four years. What do these funds pay for? Additional teachers,
specifically in art, music, physical education, and library media services. Referendum dollars also help
the District meet class size requirements, attract, train, and retain highly-qualified teachers, and help
expand vocational programs and services as well as school safety.
As part of its promise, the Marion County School Board established an Independent Citizens
Referendum Oversight Committee (ICROC) to ensure the School District spends these tax dollars as
promised. The ICROC committee meets throughout the year and reports directly to the Marion County
School Board. Unexpended funds are shown as restricted fund balances.
Fund balances can be also be classified as nonspendable, assigned and unassigned. Nonspendable fund
balance is the net current financial resources that cannot be spent because they are either not in
spendable form or are legally or contractually required to be maintained intact. Assigned fund balance
is intended to be used by the District for specific purposes. Unassigned fund balance is the portion of
fund balance that is the residual classification for the General Fund.
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2017 2018 2019 2020 2021
General Fund Fund Balance
Nonspendable Restricted Assigned Unassigned
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LONG-TERM DEBT
Long-Term Debt
For financial statement reporting purposes the District reports long term liabilities that include certificates of
participation, bonds payable, note payable, compensated absences, other post-employment benefits payable,
and net pension liability.
2021
Certificates of Participation 45,596,374$
Bonds Payable 2,504,000
Notes Payable 12,998,760
Compensated Absences 33,382,887
Other Postemployment Benefits 21,238,339
Estimated Insurance Claims 12,809,452
Net Pension Liability 292,626,668
421,156,480$
Certificates of Participation
(COPs)
Certificates of Participation are a
financing mechanism that allow a
school district to finance property
to be paid over time in the form of
lease payments. The proceeds are
used for construction and
renovation of facilities. The
funding source for repayment of
this type of debt come from
property taxes.
Bonds Payable
Bonds are similar to a mortgage on
a home. The district sells bonds to
investors who will pay principal
and interest. The proceeds are
used for construction and
renovation of facilities. State
School bonds are issued by the
State of Florida on behalf of the
District and are repaid from motor
vehicle license taxes. District
Revenue bonds are secured from
pari-mutuel tax proceeds
distributed annually to the District.
Note Payable
In 2019, the District borrowed
approximately $15 million to
purchase 150 additional buses.
Compensated Absences Payable
This represents paid absences for
employee vacation leave and sick
leave that are accrued as liabilities
to the extent that it is probable
that the benefits will result in
termination payments. The
liability is paid as employees who
have vested by Board policy resign
or retire. The liability includes
salary-related benefits, where
applicable.
Other Postemployment Benefits
Pursuant to the provisions of
Florida Statutes, employees who
retire from the District are eligible
to participate in the District’s
health and hospitalization plan for
medical, prescription drug, dental,
and vision coverage. The District
subsidizes the premium rates paid
by retirees by allowing them to
participate in the plan. The liability
balance is actuarially calculated.
Estimated Insurance Claims
The District is exposed to various
risks of loss related to torts; theft
of, damage to, and destruction of
assets; errors and omissions;
injuries to employees; and natural
disasters. Workers’ compensation,
health insurance, automobile
liability, general liability, property
damage, and boiler and machinery
coverage are being provided on a
self-insured basis up to specified
limits. The District has entered into
agreements with various insurance
companies to provide specific
excess and aggregate excess
coverages. The liability balance is
actuarially calculated.
Pension Liabilities
The District participates in the
Florida Retirement System’s
defined pension benefit plans (FRS)
and the Health Insurance Subsidy
(HIS). The liability is the District’s
proportionate share of the net
pension liabilities of the State’s
retirement program. Essentially all
regular employees of the District
are eligible to enroll as members of
the State-administered FRS.
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CAPITAL ASSETS
What are capital assets?
All district owned property such as land, buildings, equipment, motor vehicles (including buses), and
software make up the value of our capital assets. The total value of our capital assets, net of
depreciation was $510,085,358 in fiscal year 2021.
Due to limited funding, the District has directed their primary efforts to significant maintenance,
renovation, and remodeling projects. During the year several heating, ventilating, and air conditioning
and reroofing projects were completed.
As assets age, the maintenance cost increases, buildings need new roofs, or air-conditioning systems
need to be overhauled. Likewise, aging buses need constant repair. This includes minor parts such as
belts, batteries, or tires to major parts such as engines or transmissions. While most of the funding
for capital assets come from the Capital Projects Funds, the General Fund does absorb some of the
expenditures