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HomeMy WebLinkAboutCollier County Clerk of the Circuit Court - Public Financial ReportDOLLAR$ AND $EN$E A CITIZEN’S GUIDE TO COUNTY FINANCES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 COLLIER COUNTY, FLORIDA TABLE OF CONTENTS MESSAGE FROM THE CLERK Dear Collier County Residents, It is my great pleasure to present the first annual edition of DOLLARS AND SENSE for the fiscal year ended September 30,2021. In 2021,our community continued dealing with the lingering impacts of the COVID pandemic.Despite COVID,Collier County continues to be strong financially.County Government has been able to provide the residents of Collier County with the quality public services,programs,and facilities that truly make Collier County the best community in America to live,work and play. We do this through the diligent efforts of the Constitutional Officers and the Board of County Commissioners and the dedicated employees of each of the agencies.As the Collier County Clerk of the Circuit Court &Comptroller it is my duty and pleasure to provide Collier County residents with a clear and concise examination of all expenditures and investments.My primary focus is to make sure that Collier County tax dollars are being spent with the upmost accountability.This financial guide will provide the clear and transparent information that you deserve. It is my honor to serve Collier County residents as the Clerk of the Circuit Court &Comptroller and I promise to continue providing the very best in accountability for the years to come. Thank you for your continued trust and support. Sincerely, Crystal K. Kinzel Collier County Clerk of the Circuit Court & Comptroller Crystal K. Kinzel Clerk of the Circuit Court & Comptroller Collier County Clerk & Comptroller Crystal K. Kinzel is a Certified Government Financial Manager with over 35 years of local government finance and accounting experience. Elected to office in 2018, Clerk Kinzel’s top priorities are to safeguard public funds, ensure transparency and access to public records and to provide first-class customer service to the citizens and taxpayers of Collier County. Mission Statement: “To provide the highest quality services to the citizens of Collier County while being a steadfast custodian of public funds.” ROLE OF THE CLERK The Florida Constitution,which has governed Florida citizens for more than 175 years,established a Clerk &Comptroller as an independently elected public trustee,and established at the county level a system of “checks and balances”to serve citizens and taxpayers by helping ensure taxpayer dollars are spent according to law and follow all financial reporting guidelines.Florida Statutes assign more than 1,000 tasks to the Clerk of the Circuit Court & Comptroller. The role of the Clerk of the Circuit Court &Comptroller as an elected public trustee is one of the most important aspects of the position because she serves at the will of the people.It is the Clerk’s responsibility to serve as the “watchdog”of the taxpayer dollars to ensure funds are expended to serve a public purpose and for the benefit of the public as a whole. 2 As Clerk of the Courts,the Clerk maintains custody of court records and all related pleadings filed,secures evidence entered in court and ensures that the integrity of court files is protected.The Clerk also collects and disburses court fines and fees and summons prospective jurors. As Recorder of Official Land Records,the ClerkmaintainsOfficialRecordsoftheCountyandensures their integrity is protected.Collier County records date back to 1923 when Collier County was established. As Clerk to the Board of County Commissioners,the Clerk produces,records and distributes the officialminutesoftheBoardofCountyCommissionmeetings, maintains custody of all county resolutions and ordinances and is the administrator of the Value Adjustment Board. As Comptroller,the Clerk provides accounting services to all divisions under the Board of County Commissioners and is responsible for processing accounts payable, accounts receivable and payroll transactions.The Clerk also maintains the financial accounting software and prepares a variety of financial reports. As County Auditor,the Clerk audits invoices for legality and public purpose prior to payment.The Clerk also serves as an Inspector General Office. ABOUT THIS GUIDE DOLLARS AND SENSE is part of our ongoing effort to keep the residents of Collier County informed of all Collier County financial transactions.It is our goal to create a clear and concise evaluation of the County’s finances,so that you have a quick and concise summary of annual financial information. This report is created from financial reporting information derived from the Collier County Comprehensive Annual Financial Report for the fiscal year ended September 30,2021.The report is available at collierclerk.com in the Finance section.The Comprehensive Annual Financial Report includes more than 375 pages of audited County financial statements,notes,schedules,and reports. DOLLARS AND SENSE,which is also known as the Popular Annual Financial Report (PAFR),is a recommended best practice of the Government Finance Officers Association (GFOA),North America’s leading authority on governmental accounting and financial reporting. This guide does not conform to generally accepted accounting principles (GAAP)because this is a summary.It is intended to give you an overview of fiscal trends and summaries of major activities. 3 COUNTY OVERVIEW Collier County was established on May 8,1923 under theConstitutionandthelawsoftheStateofFlorida.The County is located on the southern end of Florida’s Gulf Coast,due west of Miami and is the largest county in land area in the State of Florida.With a 2021 population of 389,754 (a 20.4%increase over the last ten years),Collier County isoneofthefastestgrowingcountiesinthestateoverthelast ten years. Collier County,known as “the Paradise Coast”is known for beautiful beaches,bountiful fishing opportunities and wildlife sightings.Collier County stretches from Barefoot Beach Preserve to the southern tip of Marco Island’s South Beach.Collier County also has numerous state parks and protected sanctuaries,including the Everglades National Park and Big Cypress National Preserve,attracting visitors from around the world. The County provides its citizens with a wide range of services that include tax assessment and collections,law enforcement,emergency management,fire and emergency medical services,animal services,library,museum and cultural services,parks and recreation operations,road maintenance and construction, economic development and social and human services.Additionally,the County owns and operates a water and wastewater utility,a solid waste landfill and recycling program,a landfill gas to energy facility,three airports,a transit system and an amateur sports complex. 4 300,000 310,000 320,000 330,000 340,000 350,000 360,000 370,000 380,000 390,000 400,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Population GrowthLast Ten Years BOARD OF COUNTY COMMISSIONERS Collier County is a non-charter county established under the Constitution and the Laws of the State of Florida. The Collier County Board of County Commissioners is comprised of five members elected in the five different districts of the county.The Board of County Commissioners serves as the governing body of the county and has the responsibility of setting policies that protect the health,safety,welfare and quality of life of our residents and visitors.The Board of County Commissioners appoints a County Manager to carry out policies and oversee the county’s day-to-day operations. Rick LoCastro CommissionerDistrict 1Rick.LoCastro@colliercountyfl.gov(239) 252-8601 Andy Solis, Esq. CommissionerDistrict 2 Andy.Solis@colliercountyfl.gov(239) 252-8602 Burt L. SaundersCommissioner District 3Burt.Saunders@colliercountyfl.gov(239) 252-8603 Penny Taylor ChairmanDistrict 4Penny.Taylor@colliercountyfl.gov(239) 252-8604 William L. McDaniel, Jr. Vice Chairman District 5Bill.McDaniel@colliercountyfl.gov (239) 252-8605 5 ELECTED CONSTITUTIONAL OFFICERS In addition to the Board of County Commissioners,there are five elected Constitutional Officers serving specific government functions:Clerk of the Circuit Court &Comptroller (Clerk),Property Appraiser,Sheriff,Supervisor of Elections and Tax Collector. Although the funding for Constitutional Officers is included in the County’s General Fund,the Board does not have responsibility for their operations.Each Office is operated separately within the legal constructs and guidelines of their Office. The Clerk,Sheriff and Supervisor of Elections submit proposed operating budgets to the Board by May 1st for the subsequent year. The Florida Department of Revenue receives budgets from the Property Appraiser prior to June 1st and from the Tax Collector prior to August 1st.When the State approves these budgets,they are forwarded to the Board.The Clerk’s court related functions budget is submitted to the Florida Clerks of Court Operations Corporation (CCOC)prior to June 1st.The Clerk’s court related operating budget includes proposed expenditures and the resources to finance court services as set forth in Florida Statutes,Section 28.36. Abe Skinner, CFA Property Appraiser 239-252-8141 feedback@collierappraiser.com Crystal K. Kinzel Clerk of the Circuit Court & Comptroller 239-252-2646 Collierclerk@collierclerk.com Kevin Rambosk Sheriff Non-emergency number 239-252-9300 sheriff@colliersheriff.org Jennifer Edwards Supervisor of Elections 239-252-8683 Supervisor.Elections@CollierVotes.gov Rob Stoneburner Tax Collector239-252-8171 rstoneburner@colliertax.com 6 SOURCES OF COUNTY FUNDS –GOVERNMENTAL ACTIVITIES REVENUES General Revenues Property Taxes are ad valorem taxes levied on an assessed valuation of real and/or personal property and are considered general revenue for theCounty.Property tax revenue increased by $24.5 million,or 6.5%compared to last year due to an increase in property values of 6.1%. Sales Tax and Infrastructure Sales Tax consist of the County’s share of the State imposed Sales Tax and the additional one-cent sales surtax passed by voters to enhance the safety,mobility and hurricane preparedness in Collier County.Sales Tax and Infrastructure Sales Tax generated$155.3 million in fiscal year 2021,an increase of 22.3%over the prior fiscal year. Other Taxes and Revenues consist of Gas Tax,Tourist Taxes,Communication Services Taxes,State Revenue Sharing and other taxes. Interest and Miscellaneous Revenue is comprised of revenues earned from investments and other miscellaneous revenues. Program Revenues Fines,Fees and Charges for Services are fees that are collected for services rendered such as building permits,park program registration fees and pet licenses. Operating Grants and Contributions include grants from the Federal and State government to fund operating expenses of specific programs.Therewasanincreaseof$64.7 million or 190.1%primarily as a result of State and Federal grants related to the COVID-19 pandemic for community assistance. Capital Grants and Contributions include grants from the Federal and State government to fund the acquisition of capital assets such asroadsandequipment. 7 Capital Grants and Contributions Operating Grants and Contributions Fines, Fees and Charges for Services Interest and Miscellaneous Revenue Other Taxes and Revenues Sales Tax and Infrastructure Sales Tax Property Taxes Governmental Activities Revenues(Amounts in Thousands) 2019 2020 2021 School Board$1,288.70 Mosquito Control$38.39 Fire Control$357.89 Conservation Collier$59.65 County Lighting District$31.37 County Government$1,049.97 Water Management$51.94 SOURCES OF COUNTY FUNDS –PROPERTY TAXES This example is based on a taxable value of $238,592 (assessed value of $288,592 with $50,000 in exemptions for all taxing authorities except the School Board which has exemptions of $25,000). The County’s largest source of operating revenue is the property or “ad valorem”tax.This tax is based on the value of all land and buildings (real property)as well as business equipment and machinery (tangible personal property)within the County asdeterminedannuallybythePropertyAppraiser.The Board of County Commissioners,school board,cities and other levying bodies also set millage rates.A “mil”is equal to $1 per $1,000 of taxable property value.The County’s millage for General Fund operations in the 2021 fiscal year is under 36%of the statutory 10millimit,or $3.56 per thousand dollars of taxable value.For 2021, the taxable value was $110,289,280,000 which is a 65.3% increase over the 2012 fiscal year. Example –Unincorporated Collier County Resident Breakdown of Property Tax Bill Total Tax bill of $2,877.91 8 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 $110,000,000 $120,000,000 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Taxable Assessed ValueLast Ten Fiscal Years(Amounts in Thousands) USES OF COUNTY FUNDS –GOVERNMENTAL ACTIVITIES EXPENSES Governmental activities overall expenses increased by 4.5% or $27.8 million from the prior year as the County shifted from COVID-19 pandemic response in 2020 to assisting community recovery in 2021. Human services increased $56.3 million, or 269.3%, as a result of state and local grants related to the COVID- 19 pandemic for community assistance. Public safety expenses decreased $29.3 million, or 11.0%, as operations return to pre-pandemic levels. Governmental activities are comprised of the main services provided to citizens and include law enforcement,election services,tax assessment and collections,court services,emergency management,construction and maintenance of roads and other infrastructure, social services and culture and recreation services.These services are funded primarily by property and sales taxes, intergovernmental revenues and user fees. 9 General government Public safety Physical environment Transportaiton Economic environment Human services Culture and recreation Interest and fiscal charges Governmental Activities Expenses (Amounts in Thousands) 2019 2020 2021 GENRAL FUND REVENUES AND EXPENDITURES The general fund is the primary operating fund for Collier County.All general tax revenues and other receipts that are not accounted for in other funds are accounted for in the general fund. Key financial factors for the year were as follows: Public safety expenditures increased $8 million or 4.3% as a result of step raises and retirement pay outs in the Sheriff’s Office. Intergovernmental revenues increased $11.5 million or 19.2% due to an increase in the half cent sales tax and state revenue sharing. Tax revenue increased by $19.6 million primarily due to a 6.1% increase in taxable value. Overall General Fund revenues and other financing sources increased by $66.5 million or 16.0% from the previous year. Capital outlay expenditures increased $10.7 million or 60.5% primarily for the construction of the Heritage Bay Government Center. 10 Other Financing Sources/Transfers In$48,756,714 Miscellaneous$8,213,343 Interest income$631,077 Fines and forfeitures$578,961 Charges for services$15,958,531 Intergovernmental$71,504,172 Licenses, permits and impact fees$388,820 Taxes$336,470,724 General Fund RevenuesFiscal Year 2021 Other Financing Sources/Transfers Out$131,850,735 Capital outlay$28,377,497 Debt service$851,331 Culture and recreation$18,052,787 Human services$13,498,007 Economic environment$1,752,853 Transportation$243,616 Physical environment$758,771 Public safety$193,802,036 General government$80,381,511 General Fund ExpendituresFiscal Year 2021 ENTERPRISE FUND REVENUES AND EXPENSES Collier County Water and Sewer District (District) The District was established by Special Act to provide water,sewer andeffluentservicestoportionsoftheunincorporatedareaofCollierCounty.Net operating income decreased by $2,529,195 or 18.4%whencomparedtofiscalyear2020.The decrease in net operating income wasprimarilytheresultofa2.9%rate increase offset by a 5.3%increase intotaloperatingexpensesasaresultofincreasesintemporarylaborandutilitypartscosts. Solid Waste Disposal The Solid Waste Disposal fund is used to account for the provision of solid waste disposal services to users throughout the county.The Solid Waste Disposal fund’s net income increased by $2,532,093 or 52.0% when compared to fiscal year 2020.The increase in net operating income was primarily the result of a 2.9%increase in charges for services offset by a 5.4%increase in total operating expenses. Emergency Medical Services The Emergency Medical Services fund is used to account for the provision of emergency ambulance and paramedical services to users throughout the County.The net operating loss decreased by $7,161,461 or 34.5%when compared to fiscal year 2020.The decrease in net operating loss was mainly due to the decrease in personal services as a result of a reduction in the allocated pension plan expense. Airport Authority The Airport Authority fund is used to account for the provision of airportfacilitiesandthesaleoffuelattheairports.The net operating lossdecreasedby$751,897 or 67.5%as a result of an increase in fuel sales.Pandemic restrictions on commercial aviation influenced the increaseddemandforprivateairtravelresultingina43.5%increase in gallons offuelsold. Collier Area Transit The Collier Area Transit fund is used to account for the provision of public transportation throughout the County.The net operating loss decreased by $318,106 or 2.5%due to a 12.1%increase in ridership as levels return to pre-pandemic levels. 11 Collier Area Transit Airport Authority Emergency Medical Services Solid Waste Disposal County Water and Sewer District Enterprise FundRevenue and Expenses Fiscal Year 2021(Amounts in Thousands) Revenue Expense LOCAL ECONOMY Top five industries: Retail trade Healthcare Real Estate Construction Hospitality and Food Service Sports tourism is a growing segment of Collier County’s economy.The MintoUnitedStatesOpenPickleballChampionshipcontinuestoexpandandgenerallyattractsnationalandinternationalparticipation.The Paradise Coast Sports Complex is a multipurpose entertainment facility situated near I-75 and Collier Boulevard.At completion,the Complex will contain twenty-one multipurpose fields,an outdoor fitness center,a food truck pavilion and a championshipstadium.The first phase of the facility opened in October of 2020 and finalcompletionisexpectedin2022.The Complex is designed to attract national tournaments,while at the same time providing additional fields needed for local field play for sports such as soccer and baseball. To further promote economic growth,diversify the economy and encourage high-wage job creation,the Board of County Commissioners created three Economic Innovation Zones.The Ave Maria Innovation Zone,the Interchange Activity Center No.9 Innovation Zone and the Golden Gate City Economic Development Zone were created to provide specific geographic areas a dedicated source ofeconomicdevelopmentfundingthroughtaxincrementrevenues.Flexible zoning overlays that will allow for reduced developmental timeframes for qualified target industry uses within the Zones are in process. 12 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Unemployment RatesLast Ten Years Collier County State Average CASH AND INVESTMENTS The Clerk of the Circuit Court and Comptroller is responsible for all investment activity of the Board of County Commissioners in accordance with Florida Statutes 218.415 and 28.33 and the County Investment Policy authorized by Resolution 2014-260.The investment policy and ordinance can be found at collierclerk.com/finance. Primary Objectives: Preservation of capital and protection of investment principal. Match assets to liabilities by maintaining sufficient liquidity to meet reasonably anticipated operating and capital requirements. Secondary Objective: Return on Investment -The investment portfolio shall be designed with the objective of attaining a market rate of return,taking into account the investment risk constraints and liquidity needs. Return on investment is of least importance compared to the safety and liquidity objectives described above.The core of investments is limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.Despite this,the County may trade to recognize a loss from time to time to achieve a perceived relative value based on its potential to enhance the return of the portfolio. 13 DEBT On September 30,2021,Collier County had total bonded debt,notes,loans,leases and financed purchase obligations of $809,595,785, an increase of $217,204,627 from the previous year.Our Debt Per Capita is $2,077.20.On November 3,2020,Collier County issued the Series 2020A Special Obligation Revenue Bonds and the Series 2020B Taxable Special Revenue Bonds in the respective par amounts of $75,100,000 and $24,075,000.The Series 2020A bonds were issued for various stormwater and aquatic facility improvements as well as to refinance an outstanding commercial paper loan.The Series 2020B bonds were issued for purposes of acquiring certain real property. On July 27,2021,the Board of County Commissioners of Collier County,Florida and ex-officio as the governing Board of the Collier County Water-Sewer District (District)issued the Series 2021 Water and Sewer Revenue Bonds in the par amount of $128,900,000. These bonds were issued for purposes of financing the acquisition,construction and equipping of various utility capital improvements related to Golden Gate City and surrounding areas,the northeast service area and the utilities’portion of the planned Government Operations Business Park. 14 Current Ratings (as of 3/14/2022)Fitch Moody’s Standard & Poor’s Gas Tax Revenue Bonds AA-A2 A+ Special Obligation Bonds AA Aa1 AAA Tourist Development Tax Bonds*AA+Aa3 - Current Ratings (as of 3/14/2022)Fitch Moody’s Standard & Poor’s* Water and Sewer Revenue Bonds AAA Aaa - Collier County Governmental Bonded Debt Ratings Table: Collier County Enterprise Debt Ratings Table: *Standard & Poor’s does not currently rate these bonds. CAPITAL ASSETS As of September 30,2021,Collier County’s investment in capital assets for the governmental and business-type activities amounted to $2.8 billion,net of accumulated depreciation.This investment in capital assets includes land,buildings and improvements,water and wastewater plants,machinery and equipment,parks,roads,beach renourishment and drainage structures.There was a total increase in capital assets net of depreciation of 4.5%over the prior fiscal year. 15 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Capital Assets By Type(Amounts in Thousands) Governmental Activities Business-type Activities Land19.8% Construction in progress8.2% Buildings11.7% Infrastructure23.0% Improvements32.9% Machinery and Equipment4.1% Right-to-use assets0.3% Capital Assets Category By PercentGovernmental and Business-Type Activities MAJOR INITIATIVES AND ACCOMPLISHMENTS The following major projects are currently underway in Collier County: Vanderbilt Beach Road Extension Location:Golden Gate Project Status:The design phase of this project was completed in fiscal year 2021andconstructionisexpectedtobegininfiscalyear2022.Project includes a 7-mile extension of Vanderbilt Beach Road from east of Collier Blvd.to Wilson Blvd.,new intersections at Wilson Boulevard,8th Street N.E.and 16th Street N.E.and improvements to existing intersecting streets including Weber Boulevard,Massey Street and Douglas Street.This project receives $74 million in infrastructure surtaxfunds. The following major projects or initiatives were completed during FY-2021: •Paradise Coast Sports Complex Championship Stadium,Food Truck Pavilion •Marco Island Executive Airport Terminal Building •EMS Station Medic 25 •Big Island Corkscrew Regional Park Baseball,Softball and Multipurpose Fields,Playground,Picnic Pavilions and Concession Stands Collier County Mental Health Facility Location:Golden Gate Parkway near the David Lawrence Center Complex Project Status:This project is currently in the programming phase for a feasibility study and subsequent design and construction of a 54,000 square foot Mental Health Facility.The new facility will increase crisis support,inpatient and addiction treatment capacity and will serve as the Central Receiving Center for those receiving services under both the Baker and Marchman Acts. Paradise Coast Sports Complex Location:City Gate Project Status:Phases 2.1 and 2.2 have begun with five artificial turf multipurpose fields,one large pavilion and restrooms are currently under construction. 16 Big Island Corkscrew Regional Park Location:Golden Gate Project Status:Additional amenities consisting of an aquatic complex,community center,basketball courts,and pickleball and tennis courts are currently under construction. MAJOR INITIATIVES AND ACCOMPLISHMENTS 108th and 109th Avenues Public Utilities Renewal Project Location:108th and 109th Avenues between US41 and Vanderbilt Drive Project Status:Construction started in May 2021.Currently,the contractor is finishing sewer installation on the 700 blocks of both avenues.Once this activity is completed,the contractor will start restoration on the 700 blocks.This project posts updates every week on www.CollierPUR.com. Heritage Bay Government Center and EMS Station Location:Immokalee Road and CR951 Project Status:The new 20,000 square foot government services facility building is expected to be completed in the 2022 fiscal year.This facility will serve as a satellitelocationfortheTaxCollector,Property Appraiser,Clerk of Courts and Supervisor ofElectionstoprovideservicestothegeneralpublic.Construction of a new 5,000 square foot Emergency Medical Services (EMS)facility at that site is currently in the programming and design phase. Northeast Service Area Utility Expansion Location:Northeast Collier County Project Status:This project includes construction of raw water,potable water,IQ water,and wastewater transmission mains and pipelines;deep injection,monitoring,and raw water wells;storage tanks;pump stations;and vertical facilities necessary to enable production,distribution,collection, and treatment in the northeast service area.This is a multi-year project funded primarily by bond proceeds of approximately $124 million. 17 Vanderbilt MSTU Bluebill Avenue and Vanderbilt Drive Sidewalk Enhancements Location:Northwest and Southwest Corners of Bluebill Avenue and Vanderbilt Drive Project Status:Sidewalk improvements at the Northwest and Southwest corners of Bluebill Avenue and Vanderbilt Drive started May 2021.Approximately 5,600 square feet of pavers will be installed along with concrete curbing,gutters and curb ramps. Caxambas Park Community Center Location:909 Collier Court,Marco Island Project Status:The design process has started for a new 2,400 square foot Community Center located at the Caxambas Park on Marco Island.The building will include a large meeting/training room,restrooms,offices and a small break room. Crystal K. Kinzel Clerk of the Circuit Court & Comptroller Collier County, Florida 3315 Tamiami Trail East, Ste. 102 Naples, FL 34112-5324 (239) 252-2646 www.collierclerk.com DOLLARS AND SENSE was prepared by the Clerk’s Department of Finance and Accounting. Thank you for reading DOLLAR$ AND $EN$E