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HomeMy WebLinkAboutCounty of Volusia - Public Financial Report , 14* 4 •./* 9< l. `. . I` 7 a , py it 'l wd,� mow ai' i I� n y'' r . � 4 �; • 4: 44,} N Et Qr 11 t +� 1. ' r; i , r„ ,J LL a *�� r. r } .1 x•a; W Ui ( UDC tr4 LL 0 ❑ �. .,�., ram, $ J Z '> ....00jp,) � ��' • LLB E 1 ' '3 _ I' If. 7 .+ � srr d f • §v ti' .- i Yy"Y(, r • Z Et ❑ 4r. f at'� P. � ,'L J 'Q1 Et 1 I k `� �• LEI I i Weft r' -- hT �P•" ; . �.y. • , r4i.- Y _ 4, : '' a„ _ W; a y = ... - „"�- a f > ` s . ' f I ;'.\ ,:. r " 1rY• ;. r , , i e 10 1 , IZ y1y elici'' f LL• • s �3: - -.Ft q rk-\k� ` •'r'�ji'A��f.`'?. .0 f•�"3•!� f':{-� •-a...,.s. ti„:M . . �. 1+F+2'.... day i. 1 $ 1' � - a!y- n . . ,� f • ' 's a 1y ,a �. TiJ ,s ¢ F{ " sW-44 ' j d ], ra' r • e:47 '. , nn. .' Y; fr ''pp MLU X.l -r, _ .�/ . ...- T. ACKNOWLEDGEMENTS The successful completion of this year's Popular Annual Financial Report is attributed to the group efforts of several individuals deserving of special recognition. The cooperation, contributions, and expertise provided by each one are greatly appreciated. The Accounting team is commended for their expertise and perpetual efforts put forth in the research, analysis, and compilation of this report. Lynne Urice, CGFO, Accounting Director Tommy Long, Accountant Karen Roberts, CPA, Accounting Manager Jason Weaver, Accountant Myriam Lemay, CTP, Activity Project Manager Madeline Nelson, Accountant Svetlana Ries, Senior Accountant Kristen Turner, Accountant Trudi Murdock, Senior Accountant Patti McLauchlin, Administrative Coordinator Tiffany Alvarez, Senior Accountant Penny Hood, Accounting Specialist Additional Acknowledgements: Aaron Van Kleeck, Division Director, Management and Budget Wanda Lindberg, Chief Financial Officer, Volusia County Tax Collector Helga Van Eckert, Division Director, Economic Development Jennifer Madewell, CGFO, Activity Project Manager Roger Wittenberg, Operations Manager TABLE OF CONTENTS Letter of Transmittal 3 Certificate of Achievement 4 The County and its Organization 5 Principal County Officials 6 Volusia County Organizational Chart 7 Economic Condition of the County 8 Annual Budget Cycle 11 Revenues 12 Expenses 16 Balance Sheet 20 Cash and Investments 23 Long-Term Debt 24 County-wide Property Taxes and Assessed Value 25 Demographics 27 Interesting Facts 28 -2 - 4ft. Volusia County FLORIDA May 27, 2022 It is a pleasure to present the eleventh issue of the County of Volusia, Florida, Popular Annual Financial Report for the fiscal year ended September 30, 2021. It represents a brief presentation of financial information and activities of the County, but excludes discretely presented component units. Since the Popular Annual Financial Report contains simplified information, it does not conform to Generally Accepted Accounting Principles (GAAP) for governmental entities. Information contained in this Popular Annual Financial Report was derived from the audited County of Volusia, Florida, Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2021. The ACFR consists of over 450 pages of detailed financial statements, notes, schedules, and reports and, along with this annual report, is published online at www.volusia.org/finance. The Government Finance Officers Association has awarded the County the Certificate of Achievement for Excellence in Financial Reporting for the ACFR, an ongoing tradition since the County received its first award in 1977. Fiscal policy is established by the County Council, implemented by County management, and includes sound management and fiscal practices, continued vigilance in long range monitoring of revenue and expense trends, maintaining strong reserve balances, and a conservative approach to debt management. I would like to thank the County Manager, County Chair, and County Council for their leadership and support in planning the financial operations of the County in a responsible and progressive manner. Sincerely, Ryan Ossowski, CPA Chief Financial Officer - 3 - GD Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to County of Volusia Florida For its �1.rinuenl Financial Report for the Fiscal Year Ended September 30, 2020 ' �� pxecuiive Direcu3r10EO 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 County of Volusia, Florida for its Popular Annual Financial Report for the fiscal year ended September 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 unit must publish a Popular Annual Financial Report, 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 for consideration. -4 - The County and its Organization Volusia County is located in the east-central region of the State of Florida and bordered by the Atlantic Ocean. Volusia County14P ■f 1iroi ; NA, is approximately 40 miles northeast of the City of Orlando and • - --' Ns;approximately 200 miles from Tallahassee, Florida's capital. Volusia County was established in 1854 and became the 30t" � county in the State of Florida. In June 1970, the electorate of Ai Volusia County adopted a Home Rule Charter, effective • I January 1, 1971. The County operates under a Alin', AII Council/Manager form of government. The promulgation and Will adoption of policy are the responsibility of the seven-member Council and the execution of such policy is the responsibility of Ar the council-appointed County Manager. The Council is elected on a non-partisan basis. Voters elect the County Council which consists of seven members that serve four-year terms. Five are elected by district; the County Chair and the At-Large representative are elected countywide. On November 6, 2018, an amendment to the Constitution of the State of Florida was approved by the voters (Amendment 10) to be effective January 5, 2021. As a result, the structure of the County has significantly changed. Amendment 10 supersedes Volusia County's Home Rule Charter, where the Property Appraiser, Tax Collector, Supervisor of Elections, and Sheriff are elected department heads. Amendment 10 confers state Constitutional Officer status on the offices of the Property Appraiser, Tax Collector, Supervisor of Elections, and Sheriff. The County provides a full range of services, including public protection; highway, street, and other infrastructure construction and maintenance; growth management; conservation and resource management; economic development; health and human welfare assistance; and recreational activities and cultural events. In addition, the County operates a water and sewer system, an international airport, a public transportation system, a parking garage, a garbage collection program, and a refuse disposal system. Volusia County Vision and Mission Statement Vision: To be a community rich with resources and opportunities today and for generations to come. Mission: To provide responsive and fiscally responsible services for the health, safety, and quality of life for our citizens. Strategic Goals: • Thriving Communities: Promote health and safety, provide services to meet needs of citizens, and practice stewardship of the environment. • Economic and Financial Vitality: Achieve strong economic health tied to job growth, industry balance, and financial soundness. • Excellence in Government: Foster partnerships to deliver exceptional services. - 5 - Principal County Officials COUNTY COUNCIL Volusia County operates under a Council/Manager form of government. The promulgation and adoption of policy are the responsibility of the seven-member council. Council members at fiscal year-end were: Jeff Brower, County Chair Billie Wheeler District No. 2, Vice Chair Ben Johnson Council Member At-Large Barbara Girtman District No. 1 Danny Robins District No. 3 Heather Post District No. 4 Dr. Fred Lowry District No. 5 ELECTED OFFICIALS Elected officials responsible for specifically designated functions of County government at year-end were: Michael J. Chitwood Sheriff Lisa Lewis Supervisor of Elections Larry Bartlett, J.D. Property Appraiser Will Roberts Tax Collector APPOINTED OFFICIALS The council appoints the County Manager and the County Attorney. George Recktenwald County Manager Michael Dyer County Attorney The County Manager appoints Deputy County Managers. Suzanne Konchan Deputy County Manager - 6 - Volusia County Organizational Chart Volusia County Council I County County Manager Attorney I Internal Deputy County Human Auditor Manager Resources Aviation& Growth& Ocean Center Business Finance,CFO Community Economic Resource Public Works Public Services Services Resources Management Protection - i I Building& Community - Facilities Accounting - Community - Airport - Code Deputy Deputy - Information Management Assistance Director Director Administration - Fleet Information - Library _ Economic _ Environmental - Coastal - Animal Management Technology Services Development Management Control Parks, Planning& Engineering& - Purchasing Management& - Recreation& - Development g - Beach Safety Budget Culture Services - Construction _ Treasury& - Resource - Mosquito - Corrections Billing Stewardship Control - Veterans _ Road& Emergency Bridge Management Votran Emergency - - Solid Waste - Medical Administration Traffic Emergency - Engineering - Medical Services Water - Resources - Fire Rescue &Utilities Medical - Examiner -7- Economic Condition of the County Local Economy Nearly all industry sectors of the Volusia County economy had returned to pre-pandemic operating levels by fiscal 2021 year end. Most notable were the recoveries of sectors experiencing the greatest disruption in 2020, such as professional services, education, and hospitality. Year-over-year combined employment gains within these three sectors reached 4,700 by September 2021. Manufacturing employment also grew by an additional 800 jobs over the same time period. In total, over two hundred forty nine thousand (249,283) Volusia County residents were successful in finding employment, a new record high. Paralleling the growth in hospitality employment was the growth in Volusia County's tourist development tax revenue. Though travel restrictions reduced the number of international tourists coming to the region, increases in domestic visitor traffic made up the difference. Buoyed by higher average daily room rates, fiscal year 2021 collections reached a new peak of over$14 million, a 20 percent increase over pre-pandemic levels. The most resilient industry sector of Volusia County's economy over the past two years has been construction. Though building material supply chain disruptions limited year-over-year growth, construction employment continued its gains with the addition of 900 more jobs in fiscal year 2021. And, for the tenth consecutive year, residential new construction permit value has exceeded the previous year's total. The combined value of both residential and commercial new construction permits in fiscal year 2021 reached nearly $1.6 billion. Business Development Projects Several large commercial projects were launched or brought to completion during the year with each company planning significant job additions. Brown & Brown Insurance completed construction of their new 11-story headquarters building in Daytona Beach. The new 225,000 square foot riverfront building, now occupied, will be home to an estimated 1,100 employees, 600 of which will be new to the Daytona Beach location. Buc-ee's Convenience Store completed facility construction and lane expansions at the LPGA Blvd. / Interstate 95 exchange. This$32.5 million project has already generated 330 new jobs and has become a destination stop for both travelers and residents alike. ALCOM Trailers leased and completed over$3 million in upgrades to a 136,000 square foot facility near DeLand. The company has initiated production and plans to create 100 new skilled jobs. Cookies, LLC has begun renovation of a 400,000 square foot facility in northeast DeLand as a first step in the development of their Florida headquarters, a $100 million capital investment that will bring 400 jobs to Volusia County. Housing Development Projects Volusia County continued to attract both multi-family and single-family housing investments during 2021. Permits for three new multi-family construction projects, valued at $90 million, were submitted and approved during the fiscal year. This brings the two-year total investment in large multi-family housing projects to $353 million. - 8 - Demand for single-family properties also remained strong, including new home construction. Though the typical sale price for an area home increased 25 percent, demand appeared unabated with Volusia County and its municipal jurisdictions receiving and approving 4,338 permits with a combined value of $1.3 billion in fiscal year 2021. This is the second consecutive fiscal year where new single-family permit values exceeded one billion dollars. Higher Education Expansion Embry Riddle Aeronautical University opened its new $40 million residence hall and completed construction of a $4.5 million office building near its Daytona Beach campus on Beville Road. Palmer College completed construction of a new $12 million education complex that will house classrooms, new laboratories and faculty offices. Stetson University completed a $10 million renovation of the Sage Hall science building in 2021. It is phase 1 in the creation of a new science complex for students, who will be studying health sciences, natural and environmental sciences, and other fields. Phase 2 of the complex will include the addition of a new structure, the Cici & Hyatt Brown Hall for Health & Innovation, currently under construction and funded in large part by the generosity of its namesake. Transportation Programs and Initiatives 2021 passenger traffic at Daytona Beach International Airport (DBIA) has increased 53 percent versus the previous year. A portion of this growth came from the successful launch of new seasonal, non-stop service to Philadelphia and Dallas-Fort Worth from DBIA. These new routes were well utilized and will again be offered in 2022. Though year-over-year results represent a significant recovery from 2020's losses, they still lag 2019 passenger traffic levels by 26 percent. Much of the shortfall was due to the lingering effects of the pandemic on airline schedules. Other transportation highlights include road and bridge improvements that will reduce maintenance costs, improve traffic safety and expand vehicle capacity. They include replacement of the $27.2 million SR44 drawbridge, launch of the $12.7 million Orange Camp road widening project and continuation of both the $17.4 million Howland Boulevard and $18.7 million Tenth Street widening projects. Long-term Financial Planning The long-term financial planning process includes an examination of new capital and/or operating initiatives and their impact on the County's financial position. As a result, a long-term capital improvement program (CIP) has been developed to ensure that capital projects (1) match community objectives and goals; (2) encourage efficient government administration by eliminating overlapping or conflicting programs among government agencies; and (3)foster a sound and stable financial program. Each year, the County publishes a County Council approved five-year CIP document. By looking beyond year-to-year budgeting and projecting what, where, when, and how capital investments should be made, capital programming enables the County to maintain an effective level of service to the present and future population. Major capital improvement projects with initial and continued funding during fiscal year 2021 included: • Trails— Spring to Spring and River to Sea Loop • Lemon Bluff Marine Park • Holsonback Wellness Center • Ocean Center low slope roof replacement • Highbridge boat ramp improvements and 27th Avenue vehicular beach ramp • Knox Bridge submarine cable replacement • Medical Examiner facility - 9 - • Deltona North wastewater treatment facility and Gabordy Canal stormwater treatment facility improvements • Solid Waste Tomoka Landfill Class III stormwater improvements • 800 MHz public safety radio system modernization • Street widening of Tenth Street, Orange Camp Road, Howland Boulevard, Williamson Blvd and LPGA to Strickland Budgeted CIP for fiscal year 2021 included $88.8 million in projects funded through a mix of property taxes, gas taxes, impact fees, grants, user fees, and other miscellaneous revenues. Prior year carry- forwards of $34.9 million and new funding allocations of $53.9 million provided the resources to cover project costs. Long-term planning also incorporates multi-year projections for operating funds including the general fund, library, municipal services district, fire service, and other funds that have a significant impact on the County's budget, such as debt service and enterprise funds. Revenue estimates are based on historical data, trend analysis, discussions with department directors, reviews of proposed initiatives, estimates from the U.S. Bureau of Labor Statistics, Florida Department of Revenue, Florida Legislature's Office for Demographic and Economic Research, and an analysis of economic data from various sources, including the University of Florida Bureau of Economic and Business Research. - 10 - Annual Budget The County must prepare an annual budget authorizing the spending of public funds and Florida law requires the County have a balanced budget. Prior to October 1 of each year, the annual budget is legally adopted. Planning and preparation of the budget begins many months prior to its adoption. Two public hearings are held, usually in September, to elicit comments and feedback from County citizens concerning the proposed budget and tax rates. The budget can only be amended with approval of the County Council. January July Property Value Assessed \ Assessment Roll Property Appraiser determines market �. Property Appraiser prepares the value and exemption eligibility for assessment roll with values, submits the property within the County. I preliminary roll for approval to the State, and notifies each taxing authority of its respective valuations. County of Volusia Taxing Cycle November - March September / Funding of Government Services \ Public Hearings Tax Collector distributes property tax Each taxing authority holds two required collections to local governments and public hearings and adopts a budget and taxing authorities. ad valorem tax millage rate(s) for the \ / \ coming fiscal year. November Property Tax Bill Tax Collector mails tax bill to property owners and begins collection of payments. - 11 - Revenues Comparison of Revenues Between Fiscal Years 2021, 2020 and 2019 Fiscal Year Fiscal Year Fiscal Year 2021 2020 2019 (Amounts in Millions) Governmental activities: Property taxes $ 292 $ 286 $ 268 Sales tax 26 22 22 Public service tax 12 12 11 Gas tax 18 16 18 Tourist-related taxes 28 20 24 State revenue sharing 11 9 10 Investment earnings 1 5 9 Charges for services 78 70 70 Grants and contributions 126 132 67 Other revenues 3 4 4 Total governmental activities 595 576 503 Business-type activities: Refuse disposal 22 21 20 Daytona Beach International Airport 28 38 30 Volusia Transportation Authority 27 26 24 Water and sewer utilities 24 24 24 Parking garage 2 2 2 Garbage collection 11 11 11 Total business-type activities 114 122 111 Primary government total $ 709 $ 698 $ 614 - 12 - Revenues - Governmental Activities Governmental Activities are primarily supported by taxes, state shared revenues, or grants. These activities include the following functional areas: general government, public safety, physical environment, transportation, economic environment, health and social services, and culture/recreation. Compared to the prior fiscal year, revenues for the governmental activities increased by $17.9 million (3.1 percent). The increase was primarily due to operating grant revenue received from the federal government. As part of the American Rescue Plan Act (ARPA), Volusia County received a direct allocation of Coronavirus Local Fiscal Recovery Funds (CLFRF) from the federal government in the amount of$107.5 million, approximately. Of the direct allocation, approximately$12.6 million was used. Property tax revenues increased by approximately $6.3 million. The increase is mainly attributed to an additional $5.8 million in revenues due to new construction values added to the tax roll. Charges for services incurred an increase in beach toll collection revenue of approximately $3 million versus the prior year. The increase is entirely due to the increased usage, as no rate changes occurred during the last three fiscal years. Emergency medical transports performed by Volusia County EMS increased by approximately 4,500 billable trips versus the prior year, resulting in an increase of revenues of approximately $2.1 million. Revenues by Source Other Revenues % I 0.6 Grants and Contributions Property Tax 21.2% 49.1% • Charges for Services 13.1% • Sales Tax 4.3% Investment Earnings I N_Public Service Tax 0.1% State Revenue Tourist-Related 2.0% Sharing Taxes Gas Tax 1.8% 4 8% 3.0% - 13 - Revenues - Governmental Activities Comparison of Revenues by Source - Last Three Fiscal Years $30 $250 c $200 0 c $150 c c $100 Q $50 $0 r Q° 5 \ate �J° ° `�°c e tQ- ° ° °• ° G° ° G ■2021 ■2020 ■2019 - 14 - Revenues — Business-Type Activities Business-type Activities are supported by fees and user charges that are set to recover the cost of services provided. Business-type activities consist of the refuse disposal, Daytona Beach International Airport (DBIA), Volusia Transportation Authority (VOTRAN), water and sewer utilities, parking garage (beach side), and garbage collection funds. Revenues for the County's business-type activities decreased by $7.8 million (6.4 percent), when compared to the prior fiscal year. The decrease is due, in large part, to a decrease in airport charges for services. Due to the significant decline in air travel related to the COVID-19 pandemic, the airport negotiated (with County Council approval), rental accommodations for tenant airlines and parking services vendor. The accommodations, which reduced charges for services revenues by approximately $3.0 million versus the prior year, were enabled through the use of federal grant funds to fund the operations of the airport. The accommodations are one-time in nature. Airport capital grants and contributions decreased by approximately $9.6 million when compared to the prior fiscal year. This is mainly attributed to the decrease in federal and state grant receipts for the Taxiway November rehabilitation project totaling approximately$11.7 million. Receipts for the project are recognized at the same time as cash outlays are made for construction. Because the project was completed during fiscal year 2021, both grant revenues and cash outlays on the project decreased for fiscal year 2021 versus fiscal year 2020. Alternatively, airport operating grants and contributions increased from the prior year by approximately $3.0 million, which is primarily due to additional grant funding being available for airports. Specifically, the airport received 100 percent expense reimbursement from Federal Aviation Administration (FAA) grants used to reimburse regular operating expenses of the airport as part of the federal CARES Act. VOTRAN operating grants and contributions also increased by approximately $3.9 million due to additional grant funding being available for transit services. Water and sewer utilities capital grants and contributions increased by approximately$0.5 million compared to the prior fiscal year due to increased grant revenues associated with the Deltona North master lift station project. Comparison of Revenues by Business-type Activity - Last Three Fiscal Years $40 $35 $30 0 _ $25 ▪ $20 -- $15 III ▪ $10 E $5 0 $0 O`y�ya\ a\P\ oL� J�ro`� J�\\��e C41" o\\eG�4o�` � e o� "� ewe ���� oeG cL0 e�� ova a5 Qa spa � 5Q a• Ga Q'eaor -cc°. Oa�•o� v5 •a ■2021 ■2020 ■2019 - 15- Expenses Comparison of Expenses Between Fiscal Years 2021, 2020 and 2019 Fiscal Year Fiscal Year Fiscal Year 2021 2020 2019 (Amounts in Millions) Governmental activities: General government $ 80 $ 78 $ 71 Public safety 210 255 217 Physical environment 12 12 8 Transportation 35 39 39 Economic environment 49 41 25 Human services 32 25 22 Culture/recreation 52 52 61 Interest on long-term debt 3 3 4 Total governmental activities 473 505 447 Business-type activities: Refuse disposal 18 17 16 Daytona Beach International Airport 17 18 19 Volusia Transportation Authority 32 31 31 Water and sewer utilities 16 16 15 Parking garage 2 2 2 Garbage collection 11 11 11 Total business-type activities 96 95 94 Primary government total $ 569 $ 600 $ 541 - 16 - Expenses - Governmental Activities Governmental Activities expenses are grouped and reported by functional area. These functional areas include: • General government includes the county council, county manager, county attorney, elections, property appraiser, growth management commission, judicial, financial services, central services, planning and development, construction engineering and information technology expenses. • Public safety includes the costs for sheriff, corrections, ambulance services, emergency management, fire services, medical examiner, emergency medical administration, public protection administration and building, zoning and code administration operations. • Physical environment includes expenses associated with conserving and managing natural resources such as air, water, soil, wildlife, as well as mitigating pollution. • Transportation includes expenses for roads, bridges, street lighting, storm water systems and other infrastructure, and highway safety operations and projects. • Economic environment includes expenses related to new business promotion and development, housing assistance and rehabilitation programs, and veterans' services. • Human services includes expenses for services such as public health care for the poor, public assistance, care for children and the elderly, mental health and substances abuse assistance, social services, as well as animal and mosquito control. • Culture/recreation expenses include costs related to libraries, parks, and recreational facilities. • Interest on long-term debt includes costs related to interest expense for various bonds and notes issued for capital improvement projects. The cost of all governmental activities for fiscal year 2021 decreased by approximately $32.4 million (6.4 percent) when compared to the prior year. Major factors contributing to the decrease and other offsetting increases are listed below: • Pension Expense as calculated in accordance with GASB Statement No. 68, decreased by approximately $63.4 million compared to prior year. This decrease is related to the strong performance of investments for the multiple employer cost-sharing pension plans in which the County participates. Information on the pension expenses for the County's pension plan can be found in the notes to the financial statements. • A wage adjustment of 3.0 percent resulted in an increase of approximately $6.0 million dollars across all governmental activities. • An increase in liability insurance premiums totaling approximately $2.7 million resulted in an increase in all governmental activities. • An increase in compensated absences due to County employees' utilizing less paid time off, resulted in an increase of approximately $2.7 million across all governmental activities. • Depreciation expense increased by approximately $3.5 million, primarily related to end-of-life software and additional tangible assets acquired. - 17 - Expenses - Governmental Activities Expenses by Function/Program General Public Safety Government 44.4% 16.9% Interest on Long-_/ Term Debt 0.6% Culture/Recreation Physical 11.0% Environment 2.5% Human Services Transportation 6.9% Economic ° Environment 7.4/° 10.3% Comparison of Expenses by Function/Program - Last Three Fiscal Years $300 c $250 0 $200 $150 c $100 Q $50III OM .p NM IIII _ $0 ����0� a\0�� to��0 ot`a�\o �o��0�� co ot�a�o c� 0�� 00 Q\� -. gQ J\ c• Q-e '<' 'eN co G0o Qr� God G c°\. ■2021 ■2020 ■2019 - 18 - Expenses — Business-Type Activities Business-type Activities expenses increased overall by $544,216 (0.6 percent), when compared to the prior fiscal year. Expenses of all six of the County's business-type activities were affected by four broad factors during the fiscal year ended September 30, 2021. First, pension expense decreased by approximately $1.5 million. The decrease is related to strong performance of investments for the multiple employer cost- sharing pension plans in which the County participates. The second factor relates to changes in the net position of the internal service funds. Third, a wage adjustment of 3.0 percent resulted in an increase in expenses of approximately$0.3 million across all business-type activities as compared to the prior fiscal year. Lastly, an increase in liability insurance premiums totaling approximately $0.1 million resulted in increased expenses across all activities. Expenses relating to future landfill closure, and postclosure care, increased by approximately $1.9 million as compared to the prior year. Solid waste capital assets decreased by approximately $0.5 million due to several large pieces of equipment being purchased in the prior year when no such activity occurred in the current fiscal year. Depreciation expense increased, however, due to the annual depreciation expense on the equipment purchased in fiscal year 2020. The Daytona Beach International Airport paid $0.3 million in connection to a coordinated marketing effort with American Airlines for newly establish routes to Philadelphia and Dallas-Fort Worth. This was a one-time increase to expenses in fiscal year 2021. Comparison of Expenses by Business-type Activity - Last Three Fiscal Years 0 $40 0 $30 $20 o $10di $0 0��� P\��o P��r: e1 J�\\\ atao, Go • • `e 510 .c• Ga Q'eaor `�ta 4?) a ■2021 ■2020 ■2019 - 19 - Balance Sheet The balance sheet reflects the financial position of the County on the last day of the fiscal year. Restricted net position represents equity that may be used only as specified by debt covenants, grantors, laws or regulations, other governments, or other external restrictions. A comparison of fiscal years 2021, 2020, and 2019 is provided. Governmental Activities — Last Three Fiscal Years 2021 2020 2019 (Amounts in Millions) ASSETS Cash and investments $ 592 $ 536 $ 412 Due from state/federal governments 34 32 34 Receivables and other current assets 17 19 13 Inventories and prepaid items 5 5 5 Net pension asset 4 4 3 Capital assets, net of depreciation 867 841 820 Total assets 1,519 1,437 1,287 DEFERRED OUTFLOWS OF RESOURCES 91 102 95 LIABILITIES Accounts and contracts payable 25 26 19 Accrued interest payable 2 3 4 Other current liabilities 101 96 23 Notes and bonds, due within one year 3 3 3 Notes and bonds, due in more than one year 73 84 94 Net pension liability 102 337 276 Other long-term liabilities 70 73 94 Total liabilities 376 622 513 DEFERRED INFLOWS OF RESOURCES 211 11 25 NET POSITION (EQUITY) Net investment in capital assets 791 753 720 Net position, restricted 204 192 181 Net position, unrestricted 28 (39) (57) Total net position (equity) $ 1,023 $ 906 $ 844 - 20 - Balance Sheet (cont.) Business-type Activities — Last Three Fiscal Years 2021 2020 2019 (Amounts in Millions) ASSETS Cash and investments $ 106 $ 79 $ 93 Due from state/federal governments 15 25 10 Receivables and other current assets 9 8 7 Inventories and prepaid items 4 4 4 Capital assets, net of depreciation 292 289 263 Total assets 426 405 377 DEFERRED OUTFLOWS OF RESOURCES 5 4 4 LIABILITIES Accounts and contracts payable 7 9 9 Other current liabilities 4 3 2 Notes and bonds, due within one year 2 2 2 Notes and bonds, due in more than one year 17 19 28 Net pension liability 5 12 9 Other long-term liabilities 30 29 31 Total liabilities 65 74 81 DEFERRED INFLOWS OF RESOURCES 8 1 1 NET POSITION (EQUITY) Net investment in capital assets 272 267 241 Net position, restricted 4 4 7 Net position, unrestricted 82 63 51 Total net position (equity) $ 358 $ 334 $ 299 - 21 - Balance Sheet (cont. ) County Total — Last Three Fiscal Years 2021 2020 2019 (Amounts in Millions) ASSETS Cash and investments $ 698 $ 615 $ 505 Due from state/federal governments 49 57 44 Receivables and other current assets 26 27 20 Inventories and prepaid items 9 9 9 Net pension asset 4 4 3 Capital assets, net of depreciation 1,159 1,130 1,083 Total assets 1,945 1,842 1,664 DEFERRED OUTFLOWS OF RESOURCES 96 106 99 LIABILITIES Accounts and contracts payable 32 35 28 Accrued interest payable 2 3 4 Other current liabilities 105 99 25 Notes and bonds, due within one year 5 5 5 Notes and bonds, due in more than one year 90 103 122 Net pension liability 107 349 285 Other long-term liabilities 100 102 125 Total liabilities 441 696 594 DEFERRED INFLOWS OF RESOURCES 219 12 26 NET POSITION (EQUITY) Net investment in capital assets 1,063 1,020 961 Net position, restricted 208 196 188 Net position, unrestricted 110 24 (6) Total net position (equity) $ 1,381 $ 1,240 $ 1,143 - 22 - Cash and Investments The County's investment policy, established by county ordinance, provides investment guidelines for the County. This policy applies to all financial assets held or controlled by the County, with the exception of certain pension, trust, or debt related funds which are controlled by other ordinances or policies. The primary objectives of investment activities, in priority order, are: safety, liquidity, and yield. Safety of principal is the foremost objective of the investment program. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The investment portfolio remains sufficiently liquid to meet all operating requirements that are reasonably anticipated. The portfolio is designed with the objectives of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. As a result, the core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. For safety and flexibility, the County maintains a short overall weighted average maturity on its cash and investments. During fiscal year 2021, the County's cash resources were primarily invested in U.S. Agency and Treasury instruments, and government money market mutual funds regulated by the Securities and Exchange Commission. In order to provide some additional diversification, but still maintain an acceptable level of safety, the County invested in highly rated commercial paper with maturities of 270 days or less and two Florida Local Government Investment Pools (LGIPs). The County did not invest in any derivatives or similar debt and investment instruments because these do not meet its risk mitigation objectives. The interest rates received from individual securities for the fiscal year ranged from 0.01 percent to 2.375 percent. The Federal Reserve System, Federal Open Market Committee (FOMC) left rates unchanged at 0-0.25 percent for the entirety of fiscal year 2021. With rates remaining unchanged at historical lows for the entire fiscal year, we saw the County's average annual return decrease from 1.26 percent for 2020 to .451 percent for 2021. For additional information concerning the investment of County funds, refer to Note 2 of the Notes to the Financial Statements. The chart below shows the County's rate of return on investments (excluding the Volunteer Firefighters pension plan) over the last eight years. 2.50% 2.00% 2.07% iv m 1.50% 1.70% 1.26% . 1.00% o ° 0.45% 0 0 0.72% 0.87% 0.50% 0.72/o 0.00% FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 -23 - Long-Term Debt The County issues debt only for the purposes of constructing or acquiring capital improvements or for making major renovations to existing capital assets. Financing in the form of long-term notes for the acquisition of major equipment is also allowed, provided there is cost justification to do so. As part of its overall monitoring activities, the County assesses existing market conditions to determine the appropriate time to refund or extinguish outstanding debt issues, if appropriate, to realize cost savings. The County paid off the Limited Tax General Obligation Refunding Bond Series 2014 as scheduled during fiscal year 2021. A comparison of the amount of long-term debt owed at the end of fiscal year 2021 to the same time period in 2020 and 2019 is presented below: Fiscal Year Fiscal Year Fiscal Year 2021 2020 2019 (Amounts in Millions) [except debt burden per capita] Bonds payable: Revenue bonds $ 59 $ 65 $ 77 General obligation bonds - 3 6 Notes payable 35 39 43 Total bonds and notes $ 94 $ 107 $ 126 Debt burden per capita $ 168 $ 194 $ 234 - 24 - County-wide Property Taxes and Assessed Value Property Tax Millage Rates for the County of Volusia and School Board Last Five Fiscal Years -El 6 5 N lo C O CO O O4 r` ti o � 6 DC Cfl 3 O `o 2 1 0 2017 2018 2019 2020 2021 County of Volusia School Board Total Assessed Value of Taxable Property $60,000,000,000 $50,000,000,000 $40,000,000,000 1 � $30,000,000,000 ILn °0 °O O LrS rn co rn c $20,000,000,000 N CO u) Lf) LC) CO O) M CO CO LI, In in co ao $10,000,000,000 �' Ea $0 2017 2018 2019 2020 2021 -25- Principal Property Taxpayers Fiscal Year Ended September 30, 2021 2020 Percent of Total Taxpayer Type of Business Taxable Value Taxable Value Florida Power and Light Company Electric utility $ 1,675,545,753 3.92 Duke Energy Florida LLC Electric utility 312,281,850 0.73 International Speedway Corporation Entertainment 130,577,742 0.31 Oceanwalk I/II Condo Association Timeshare Sales 116,941,221 0.27 Wal-Mart Stores East LP Retail sales 111,795,110 0.26 Publix Super Markets Inc Food sales 67,757,771 0.16 Spectrum Sunshine State LLC Entertainment/Cablevision 65,088,763 0.15 BellSouth Telecommunication LLC Telecommunication 58,347,284 0.14 Daytona Beach Owner LP Real estate investment 57,335,753 0.13 LIT Deltona Logistics LLC Warehouse/Distribution 55,775,359 0.13 Subtotal Principal Taxpayers 2,651,446,606 6.20 All Other Taxpayers 40,093,585,118 93.80 Total $ 42,745,031,724 100.00 Property Tax Collected in Fiscal Year Last Five Fiscal Years Collected to Collected in End of Tax Year Fiscal Year Fiscal Current Tax Percent of Delinquent Total Percent of Year Total Tax Levy Collection Levy Collections Collections Levy 2021 $ 301,163,425 $ 290,609,104 96.50 $ 1,080,708 $ 291,689,812 96.85 2020 295,256,364 284,917,936 96.50 812,551 285,730,487 96.77 2019 276,373,617 266,491,152 96.42 1,175,811 267,666,963 96.85 2018 267,847,878 258,323,048 96.44 1,663,097 259,986,145 97.06 2017 250,157,758 241,433,627 96.51 797,561 242,231,188 96.83 - 26 - Demographics Comparison of Population and Per Capita Income Last Five Fiscal Years 600,000 $55,000 $52,500 575,000 $50,000 0 :3E $47,500 0 cz 550,000 $45,000 .Q a o_0 $42,500 525,000 $40,000 0_ $37,500 500,000 $35,000 2017 2018 2019 2020 2021 —Population —Per Capita Income Ten Largest Employers in Fiscal Year 2021 Number Percent of of Total Employer Employees Employment Volusia County School Board 7,997 3.21 AdventHealth 6,448 2.59 Halifax Health 4,000 1.60 Publix Supermarkets Incorporated 3,795 1.52 County of Volusia 3,305 1.33 Walmart Stores Incorporated 3,248 1.30 State of Florida 2,747 1.10 Embry-Riddle Aeronautical University 1,628 0.65 Amazon— Deltona location 1,500 0.60 Daytona State College 1,383 0.55 Total 36,051 14.45 Estimated total workforce 249,283 - 27 - Interesting Facts Did you know that Volusia County... • offers 54 parks that total 11,937 acres, including 274 miles of bike paths and sidewalks, multi- use trails, camping, bird observation towers, fishing, fresh and saltwater boating, historic and archaeological sites, and sports and recreation centers • has 47 miles of beaches on the Atlantic Ocean, including one of the few places you are able to drive on the beach • includes Blue Springs and DeLeon Springs state parks that have swimming and recreation in and around the fresh water springs • is home to the world-famous Daytona 500 NASCAR race and headquarters of the Ladies Professional Golf Association (LPGA) • has a Marine Science Center that includes rehabilitation services for sea turtles and birds, which also offers tours and educational opportunities for all ages • has the Lyonia Environmental Center that provides a unique insight into the County's fragile ecosystems with interactive displays where visitors can learn about the importance of the environment, energy conservation, and natural resources • owns and operates the Daytona Beach International Airport which had 3,336 scheduled flights last year, with 517,625 passengers arriving and departing the airport • owns and operates the Ocean Center, a convention and entertainment complex, located in Daytona Beach, 400 feet from the Atlantic Ocean. Ocean Center includes over 200,000 square feet of flexible exhibit and meeting space, featuring a 9,300 seat, 42,000 square foot arena, and hosting 81 events with over 277,350 attendees per year • has a library system that provided approximately 2.3 million circulation materials to members of the public and over 2 million users took advantage of the electronic resources available during the year • provides information on county services through its website, social media, news releases, live video and audio of County Council meetings, live beach cams, and weekly TV and radio shows • provides an email notification service created to disperse updates from the County Manager's office, emergency management, Ocean Center, parks and recreation, building permit center, University of Florida/Volusia County Extension, revenue services and the Sheriff's Office -.F.sr, Volusia County FLORIDA - 28 - This page is intentionally left blank - 29 - --.= ›.-.& . i- ... ,„ , raj , yi . , li - -- i ,,i 07E 1) , Ar 14 iit ( -Ig -IF 411,4.ir , . � f g5 s I r ' r ,. .r ' da 11441txr i•••?•••.4-• • . r• �' r 1ip s r E Mi, _;,,,. . 2„,..s. i\IP_ • 4 4 A .6 : #..• ii 71 `• JR! a s 1 , S:'. * rirj'•." • ' CI',. r / --4 - r, rt i• s f , f 11� I • • 1 v ;,, fl, „. lir 4 - t . , . 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