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HomeMy WebLinkAboutPasco County - Public Financial ReportPasco County, Florida Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2021 PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 Prepared in the Office of the Honorable Nikki Alvarez-Sowles, Esq., CPM Clerk of Circuit Court and County Comptroller Chief Financial Officer Heather Grimes, MBA, CPM Chief Administrative Officer Matthew Lazar, MBA., CPM Finance Director TABLE OF CONTENTS PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 i TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal ......................................................................................................................... A-1 GFOA Certificate of Achievement .................................................................................................... A-9 Organizational Chart ........................................................................................................................ A-10 List of Elected and Appointed Officials ............................................................................................. A-11 FINANCIAL SECTION Independent Auditors’ Report .................................................................................................................... B-1 Management’s Discussion and Analysis ................................................................................................... C-1 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ..................................................................................................... D-1 Statement of Activities .......................................................................................................... D-3 Fund Financial Statements: Balance Sheet – Governmental Funds ................................................................................. D-5 Reconciliation of Balance Sheet – Governmental Funds to the Government-wide Statement of Net Position ......................................................... D-6 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ............................................................................ D-7 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds to the Government-wide Statement of Activities ...................................................................................................... D-8 Statement of Net Position – Proprietary Funds ..................................................................... D-9 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds...................................................................................... D-11 Statement of Cash Flows – Proprietary Funds ..................................................................... D-12 Statement of Fiduciary Net Position – Custodial Funds ........................................................ D-14 Statement of Changes in Fiduciary Net Position – Custodial Funds .................................... D-15 Notes to the Financial Statements .............................................................................................. E-1 Summary of Significant Accounting Policies ......................................................................... E-1 Reporting Entity .............................................................................................................. E-1 Government-wide and Fund Financial Statements ........................................................ E-3 Measurement Focus, Basis of Accounting, and Financial Statement Presentation ....... E-5 Assets, Liabilities, Deferred Inflows/Outflows and Net Position ..................................... E-7 Receivables, Payables, and Amounts Due From/Due To .............................................. E-7 Inventories and Assets Held for Resale ......................................................................... E-8 Restricted Assets ............................................................................................................ E-8 Capital Assets ................................................................................................................. E-8 Deferred Outflows/Inflows of Resources ........................................................................ E-9 Long-term Obligations and Amortization ........................................................................ E-10 Unearned Revenue ......................................................................................................... E-10 Pension Costs ................................................................................................................. E-10 Postemployment Benefits Other Than Pensions ............................................................ E-10 Compensated Absences ................................................................................................ E-11 Property Taxes ............................................................................................................... E-11 Tax Abatements .............................................................................................................. E-11 Classification of Fund Balances and Net Position .......................................................... E-11 Adoption of New Accounting Principles .......................................................................... E-13 Future Accounting Pronouncements .............................................................................. E-13 Subsequent Events......................................................................................................... E-13 ii PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS (CONTINUED) Notes to the Financial Statements (continued) Stewardship, Compliance & Accountability ........................................................................... E-13 Cash and Investments .......................................................................................................... E-16 Insurance and Collateralization of Demand Deposits .................................................... E-16 Investments .................................................................................................................... E-17 Reconciliation of Cash and Cash Equivalents and Investments to Basic Financial Statements ...................................................................................... E-18 Fair Value Measurements .............................................................................................. E-19 Receivables and Due From Other Governments .................................................................. E-21 Accounts, Assessments, and Notes Receivable ............................................................ E-21 Due from Other Governments ........................................................................................ E-21 Payables and Due to Other Governments ............................................................................ E-22 Payables ......................................................................................................................... E-22 Due to Other Governments ............................................................................................ E-22 Interfund Balances and Interfund Transfers.......................................................................... E-23 Interfund Balances .......................................................................................................... E-23 Interfund Transfers ......................................................................................................... E-24 Capital Assets ....................................................................................................................... E-25 Capital Assets Activity .................................................................................................... E-25 Depreciation Expense .................................................................................................... E-28 Long-Term Liabilities ............................................................................................................. E-29 Changes in Long-Term Liabilities ................................................................................... E-29 Debt Service Requirements ............................................................................................ E-33 Debt Issues ..................................................................................................................... E-35 Other Long-Term Liabilities Information ......................................................................... E-40 Due From Tampa Bay Water ................................................................................................ E-44 Restricted Assets of Enterprise Funds .................................................................................. E-45 Landfill Closure and Long-Term Care Costs – Solid Waste Disposal and Resource Recovery System Operations .......................................................................... E-46 Pollution Remediation ........................................................................................................... E-47 Employee Retirement Plans.................................................................................................. E-48 Other Postemployment Benefits (OPEB) .............................................................................. E-53 Plan Description.............................................................................................................. E-53 Summary of Membership Information ............................................................................ E-53 Changes in the Total OPEB Plan Liability ...................................................................... E-54 Actuarial Valuation Date ................................................................................................. E-54 Actuarial Methods and Assumptions .............................................................................. E-54 Discount Rate ................................................................................................................. E-55 Sensitivity of Total OPEB Plan Liability to Changes in the Discount Rate ..................... E-59 Sensitivity of Total OPEB Plan Liability to Healthcare Cost Trend Rate Assumption .... E-59 Risk Management ................................................................................................................. E-60 Expenditures in Excess of Appropriations ............................................................................ E-61 Deficit Fund Equity ................................................................................................................ E-64 Commitments, Contingencies, and Other Matters ................................................................ E-65 Prior Period Adjustment ........................................................................................................ E-66 Fund Balances ...................................................................................................................... E-68 Subsequent Events ............................................................................................................... E-70 Required Supplementary Information: General Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ................................................................................................ F-1 American Rescue Plan Act Fund – Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual ................................................................................................ F-3 iii PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS (CONTINUED) Required Supplementary Information (continued): Schedule of County’s Proportionate Share of the Net Pension Liability and Related Ratios Florida Retirement System Pension Plan ............................................................................... F-4 Contribution Requirements – Florida Retirement System Pension Plan ..................................... F-5 Notes to Required Supplementary Information – Florida Retirement System (FRS) Pension Plan ...... F-6 Schedule of County’s Proportionate Share of the Net Pension Liability and Related Ratios Florida Retirement System Retiree Health Insurance Subsidy Program ................................ F-7 Contribution Requirements – Florida Retirement System Retiree Health Insurance Subsidy Program ........................................................................................ F-8 Notes to Required Supplementary Information Health Insurance Subsidy Program ....................................................................................... F-9 Schedule of Changes in Total OPEB Liability and Related Ratios - Other Post-Employment Benefits ........................................................................................... F-10 Notes to Required Supplementary Information ......................................................................... F-11 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet – General Fund ............................................................................... G-1 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – General Fund ....................................................................................................... G-3 Combining Balance Sheet – Nonmajor Governmental Funds ................................................... G-5 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ........................................................................... G-37 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Municipal Service Fund .......................................................................................................... G-69 Building Inspections and Permitting Fund .............................................................................. G-70 County Transportation Fund ................................................................................................... G-71 Law Enforcement Fund .......................................................................................................... G-72 Coronavirus Relief (CARES ACT) Fund ................................................................................. G-73 Tourist Development Tax Fund .............................................................................................. G-74 Special Assessment Fund ...................................................................................................... G-75 Intergovernmental Radio Communication Fund ..................................................................... G-76 Restore Act Fund .................................................................................................................... G-77 Federal Forfeiture Fund .......................................................................................................... G-78 Quail Hollow Village MSBU Fund ........................................................................................... G-79 Municipal Fire Service Unit Fund ............................................................................................ G-80 Criminal Justice (FDLE) Fund ................................................................................................ G-81 HUD Housing and Recovery NSP - II Fund ............................................................................ G-82 American Recovery Reinvestments Act Fund ........................................................................ G-83 HUD Housing and Recovery Fund ......................................................................................... G-84 Department of Housing and Urban Development (HUD) Fund .............................................. G-85 Department of Community Affairs Grants Fund ..................................................................... G-86 Department of Transportation Fund ....................................................................................... G-87 Home Program Fund .............................................................................................................. G-88 HUD Housing and Recovery NSP - III Fund ........................................................................... G-89 US Department of Health and Human Services Fund ............................................................ G-90 Project Ledger Grants Fund ................................................................................................... G-91 Parks Fund ............................................................................................................................. G-92 Division of Library Services Fund ........................................................................................... G-93 Department of Elder Affairs Fund ........................................................................................... G-94 US Department of Justice Fund ............................................................................................. G-95 Public Transportation Fund .................................................................................................... G-96 Title III-B Transportation Fund ................................................................................................ G-97 Department of Children and Families Fund ............................................................................ G-98 iv PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS (CONTINUED) Combining and Individual Fund Financial Statements and Schedules (continued): Elderly Nutrition Fund ............................................................................................................. G-99 Department of Homeland Security Fund ................................................................................ G-100 Florida Office of Tourism Trade and Economic Development Fund ...................................... G-101 Department of Environmental Protection Fund ...................................................................... G-102 My Safe Florida Home Grant Fund ........................................................................................ G-103 US Environmental Protection Agency Fund ........................................................................... G-104 Williamsburg West MSTU Fund ............................................................................................. G-105 911 Emergency Services Fund .............................................................................................. G-106 School Impact Fee Fund ........................................................................................................ G-107 Highlands MSBU Fund ........................................................................................................... G-108 Court Facilities Improvement 939.185, F.S. Fund .................................................................. G-109 Alcohol and Other Drug Abuse Fund ..................................................................................... G-110 Teen Court Fund ..................................................................................................................... G-111 Plantation Palms MSBU Fund ................................................................................................ G-112 Multi-Modal Transportation Fund ............................................................................................ G-113 Fire Impact Fee Fund ............................................................................................................. G-114 Rescue Impact Fee Fund ....................................................................................................... G-115 Hurricane Mitigation Fee Fund ............................................................................................... G-116 Grants Fund ............................................................................................................................ G-117 Stormwater Management Fund .............................................................................................. G-118 Fox Ridge MSBU Fund ........................................................................................................... G-119 Tree Fund ............................................................................................................................... G-120 Municipal Service Benefit Units Fund ..................................................................................... G-121 Timber Oaks MSBU Fund ....................................................................................................... G-122 Magnolia Valley MSBU Fund .................................................................................................. G-123 Street Lighting Assessment Fund ........................................................................................... G-124 Library Projects GO Bond Series 2021A Fund ....................................................................... G-125 Park Projects Non-Ad Valorem Revenue Bond Series 2020A Fund ...................................... G-126 Second Local Option Fuel Tax Refunding Revenue Bond Series 2020 Fund ....................... G-127 Fire-Rescue Projects GO Bond Series 2020A Fund .............................................................. G-128 Second Local Option Fuel Tax Refunding Bond Series 2021 Fund ....................................... G-129 Tourist Development Tax Revenue Bond Series 2021 Fund ................................................. G-130 HUD Section 108 Note, Series 2006 Fund ............................................................................. G-131 Guaranteed Entitlement Refunding Revenue Bond Series 2013A Fund ................................ G-132 Half-Cent Sales Tax Refunding Bond Series 2013A Fund ..................................................... G-133 Guaranteed Entitlement Loan Series 2013B Fund ................................................................. G-134 Penny for Pasco Public Safety Note Series 2016 Fund ......................................................... G-135 Sheriff GO Bond Series 2019A Fund ..................................................................................... G-136 Public Safety GO Bond Series 2019B Fund ........................................................................... G-137 Parks and Recreation GO Bond Series 2019C Fund ............................................................. G-138 Library GO Bond Series 2019D Fund ..................................................................................... G-139 Sheriff Go Bond Series 2021B Fund ...................................................................................... G-140 Debt Service Fund .................................................................................................................. G-141 Penny for Pasco Fund ............................................................................................................ G-142 Board Capital Improvements Fund ......................................................................................... G-143 Sunlake Blvd Project Series 2021 Fund ................................................................................. G-144 Second Local Option Fuel Tax Fund ...................................................................................... G-145 Libraries Projects GO Bond Series 2021A Fund .................................................................... G-146 Capital Improvement Plan Fund ............................................................................................. G-147 Sheriff Projects Go Bond Series 2021B Fund ........................................................................ G-148 Fire-Rescue Projects Go Bond Series 2020A Fund ............................................................... G-149 Parks Projects Go Bond Series 2020A Fund ......................................................................... G-150 v PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS (CONTINUED) Combining and Individual Fund Financial Statements and Schedules (continued): Penny for Pasco JEO Trust Fund ........................................................................................... G-151 Penny for Pasco Public Safety Fund ...................................................................................... G-152 Penny for Pasco Environmental Lands Fund ......................................................................... G-153 Penny for Pasco Transportation Infrastructure Fund ............................................................. G-154 Transportation CIP Fund ........................................................................................................ G-155 Road and Bridge Transportation Trust Fund .......................................................................... G-156 Paving Special Assessment Fund .......................................................................................... G-157 Stormwater Fund .................................................................................................................... G-158 HUD Section 108 Fund ........................................................................................................... G-159 Fire Impact Fee (Land) Fund .................................................................................................. G-160 Fire Impact Fee (Facilities) Fund ............................................................................................ G-161 Rescue Impact Fee (Land) Fund ............................................................................................ G-162 Rescue Impact Fee (Facilities) Fund ...................................................................................... G-163 Library Impact Fee (Land) Fund ............................................................................................. G-164 Library Impact Fee (Facilities) Fund ....................................................................................... G-165 General Obligations Fund ....................................................................................................... G-166 Park Impact Fee West (Land) Fund ....................................................................................... G-167 Park Impact Fee West (Fields) Fund ...................................................................................... G-168 Park Impact Fee West (Water Access) Fund ......................................................................... G-169 Park Impact Fee West (Other) Fund ...................................................................................... G-170 Park Impact Fee Central (Land) Fund .................................................................................... G-171 Park Impact Fee Central (Fields) Fund .................................................................................. G-172 Park Impact Fee Central (Water Access) Fund ...................................................................... G-173 Park Impact Fee Central (Other) Fund ................................................................................... G-174 Park Impact Fee East (Land) Fund ........................................................................................ G-175 Park Impact Fee East (Fields) Fund ....................................................................................... G-176 Park Impact Fee East (Water Access) Fund .......................................................................... G-177 Park Impact Fee East (Other) Fund ....................................................................................... G-178 Florida Boating Improvement Fund ........................................................................................ G-179 Mobility Fee West (Road) Fund .............................................................................................. G-180 Mobility Fee West (Transit) Fund ........................................................................................... G-181 Mobility Fee West (Bike) Fund ............................................................................................... G-182 Mobility Fee Central (Road) Fund .......................................................................................... G-183 Mobility Fee Central (Transit) Fund ........................................................................................ G-184 Mobility Fee Central (Bike) Fund ............................................................................................ G-185 Mobility Fee East (Road) Fund ............................................................................................... G-186 Mobility Fee East (Transit) Fund ............................................................................................ G-187 Mobility Fee East (Bike) Fund ................................................................................................ G-188 Mobility Fee VOPH (Road) Fund ............................................................................................ G-189 Mobility Fee VOPH (Transit) Fund ......................................................................................... G-190 Mobility Fee VOPH (Bike) Fund ............................................................................................. G-191 Capital Projects Fund ............................................................................................................. G-192 Combining Statement of Net Position – Internal Service Funds ................................................ G-193 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Internal Service Funds .................................................................................... G-194 Combining Statement of Cash Flows – Internal Service Funds ................................................. G-195 Combining Statement of Fiduciary Net Position – Custodial Funds ............................................ G-197 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ........................ G-198 vi PASCO COUNTY, FLORIDA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS (CONTINUED) STATISTICAL SECTION Financial Trends: Net Position by Component – Last Ten Fiscal Years ................................................................ H-1 Changes in Net Position – Last Ten Fiscal Years ...................................................................... H-2 Fund Balances, Governmental Funds – Last Ten Fiscal Years ................................................. H-4 Net Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................... H-5 Direct and Overlapping Property Tax Rates (Millage Rate) – Last Ten Fiscal Years ................ H-6 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .... H-7 Principal Taxpayers – Current Year and Ten Years Ago .......................................................... H-8 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................... H-9 Debt Capacity: Outstanding Debt by Type – Last Ten Fiscal Years ................................................................... H-10 Direct and Overlapping Governmental Activities Debt as of September 30, 2021 .................... H-11 Schedule of General Government Bond Coverage – Last Ten Fiscal Years: Gas Tax Refunding Revenue Bonds .................................................................................... H-12 Guaranteed Entitlement Refunding Revenue Bonds ............................................................ H-12 Half-Cent Sales Tax Revenue Bonds ................................................................................... H-12 Tourist Development Tax Bonds ........................................................................................... H-13 General Obligation Bonds ..................................................................................................... H-13 Schedule of Water and Sewer Unit Bond Coverage – Last Ten Fiscal Years ........................... H-14 Schedule of Solid Waste Disposal and Resource Recovery System Bond Coverage .............. H-15 Demographic and Economic Information: Demographic and Economic Information – Last Ten Fiscal Years ............................................ H-16 Principal Employers – Current and Ten Years Ago ................................................................... H-17 Operating Information: Employment Statistics by Function – Last Ten Fiscal Years ..................................................... H-18 Operating Indicators by Function/Program – Last Ten Fiscal Years ......................................... H-19 Capital Assets and Infrastructure Statistics by Function/Program – Last Ten Fiscal Years ...... H-20 BOND COMPLIANCE Schedules of Receipts, Disbursements and Balances – All Funds and Accounts in Compliance with Section 714(3), Indenture of Trust between Pasco County, Florida And First Union National Bank of Florida (“US Bank”) as Trustee (Bond Compliance Disclosure) ............................................................................................................. I-1 COMPLIANCE SECTION Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................................................................... J-1 Independent Auditors’ Report on Compliance for Each Major Federal Program and State Project and on Internal Control Over the Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General............................................................................ J-3 Schedule of Expenditures and Federal Awards ..................................................................................... J-5 Schedule of Expenditures of State Financial Assistance ....................................................................... J-13 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance ....................... J-16 Schedule of Findings and Questioned Costs.......................................................................................... J-17 Corrective Action Plan ............................................................................................................................ J-21 Management Letter ................................................................................................................................. J-24 Independent Accountant’s Report on Compliance with Sections 365.172(10) and 365.173(2)(d), Florida Statutes .................................................................................................... J-26 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes ................... J-27 Florida Impact Fee Act Affidavit .............................................................................................................. J-28 INTRODUCTORY SECTION       May 31, 2022 The Honorable Jack Mariano, Chairman Board of County Commissioners Pasco County, Florida 37918 Meridian Avenue Dade City, FL 33525 Dear Chairman Mariano: The Annual Comprehensive Financial Report (ACFR) of Pasco County, Florida (County), for the fiscal year ended September 30, 2021, is respectfully submitted. The Financial Services Department, within the Office of the Clerk of Circuit Court and County Comptroller (Clerk & Comptroller), prepared this report. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data, as presented, are accurate in all material respects and are presented in a manner designed to present fairly the financial position and results of operations of the various funds. All disclosures necessary to enable the reader to gain an understanding of the County's financial activities have been included. The report fulfills the requirements set forth in Section 218.39, Florida Statutes, and the Rules of the Florida Auditor General, Chapter 10.550. In accordance with Section 218.39, Florida Statutes, each county is required to have an annual financial audit of its accounts and records by an independent certified public accountant. The County has complied with this requirement, engaging the firm of Carr, Riggs & Ingram, LLC, Certified Public Accountants, to perform the audit for the fiscal year ended September 30, 2021. The goal of an independent audit is to obtain reasonable assurance that the financial statements are free of material misstatement. The independent audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Carr, Riggs & Ingram, LLC, concluded, based on the audit, there was a reasonable basis for rendering an unmodified (clean) opinion that Pasco County’s financial statements for the fiscal year ended September 30, 2021, are fairly presented, in all material respects, and in conformity with U.S. generally accepted accounting principles (GAAP). ORGANIZATION AND CONTENT OF THE ACFR The ACFR complies with the financial reporting model, as required by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments. A-1 The ACFR is organized into four sections: Introductory Section This section is intended to familiarize the reader with the organizational structure of the County, the nature and scope of the services it provides, and the specifics of its legal environment. It also provides economic and major initiative highlights. Financial Section This section includes the audited basic financial statements, notes to the financial statements, and supporting statements and schedules necessary to fairly present the financial position and the results of operations of the County, in conformity with GAAP and the independent auditors’ report. Also included in this section are the narrative introduction, overview, and analysis found in Management’s Discussion and Analysis (MD&A). MD&A is intended to disclose any known significant events or decisions that affect, or may affect, the financial condition of the County. Statistical Section This section includes selected financial and demographic information, generally presented on a multi-year basis. Compliance Section This section includes the independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards, Management Letter, Independent Accountant’s Report on Compliance with Sections 365.173(10) and 365.173(2) (d), Florida Statutes, and the Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes.   THE REPORTING ENTITY AND ITS SERVICES Pasco County is a non-charter county established under the Constitution and the laws of the State of Florida. The ACFR is a county-wide report which discloses the results of operations for the following entities: Board of County Commissioners (BCC), Clerk & Comptroller, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector. The BCC is the legislative body for Pasco County and, as such, it budgets and provides all funding used by the BCC's departments and the separate Constitutional Officers, with the exception of certain fees and service charges collected by the Clerk & Comptroller, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector. Under the direction of the Clerk & Comptroller, the Financial Services Department maintains the accounting records for the BCC and the Clerk & Comptroller operations. The Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector maintain their own accounting systems and records. However, for purposes of the ACFR, the operations of the County, as a whole, including those of the Constitutional Officers, have been presented. The process of evaluating potential component units involves the application of criteria set forth by the GASB. The financial reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The definition of the reporting entity is based primarily on the notion of financial accountability. The primary government is financially accountable for the organizations that make up its legal entity - the Board and the Constitutional Officers. The primary government is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and, either it is able to impose its will on that A-2         organization, or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. Based on the application of the aforementioned criteria, the Pasco County Housing Finance Authority, the J. “Ben” Harrill Villages of Pasadena Hills Stewardship District, and Connected Cities Stewardship District were determined to be discretely presented component units properly included in the County's reporting entity. Pasco County provides a full range of services. These include public safety (law enforcement and fire), culture and recreation, health and social services, streets and highways, public improvements, planning and zoning, utility services, resource recovery, and general and administrative services. ECONOMIC CONDITION AND OUTLOOK Pasco County is part of the nine-county region commonly referred to as the “Nature Coast.” Sitting approximately 30 miles north of Tampa and 50 miles west of Orlando, Pasco County can be defined by three distinct demographic areas:  Eastern Pasco County is defined as being a largely rural and agriculturally diverse region. It is also home to the County Seat, located in Dade City.  Central Pasco County remains the main contributor in regard to development. Once considered a discreet area of the county, it has quickly developed into the county’s main tourist draw with various forms of shopping and entertainment.  Western Pasco County is highly developed suburban area of the county. The West Pasco Government Center and West Pasco Judicial Center are located on this side of the county, in New Port Richey.  According to the Florida Office of Economic and Demographic Research (EDR), the per capita personal income level was $45,461 in 2020, up 7.0% from the prior year. The median household income level was $53,431.  Pasco County is considered by many to be located in the heart of the “Super Region.” The population of Pasco County increased from 479,340 in 2014 to 575,891 as of April 2021. Currently coming in as the 11th most populous county in Florida, the population is projected to grow another 19.1% (or to 651,000) by 2025. 479 488 496 506 515 527  542  575  450  470  490  510  530  550  570  590 2014 2015 2016 2017 2018 2019 2020 2021 Pasco County Population (in thousands) Source: Florida Legislature, Office of Economic & Demographic Research A-3          As of September 30, 2021, Pasco County’s unemployment rate stood at 4.4%. This is a decrease from the previous year’s rate of 7.7%, is 0.2% below the state average, and 0.4% below the national average, respectively. The expectation for 2022 is to see the unemployment rate for the county remain in line with the state and national averages. The economy bounced back in 2021, following a profound impact from the global shutdown resulting from the COVID-19 pandemic.  As of September 30, 2021, the median sale price of a single-family home in Pasco County was $325,745. This is 23.0% higher than in the same period 12 months earlier ($264,900), according to Pinellasrealtor.org, which tracks local real estate data. With higher home prices and a 19.6% reduced inventory of active listings, Pasco proves to be a county where new and existing residents want to live.  According to the cost of living calculator at www.bestplaces.net, and using Pasco County’s most populated cities, it costs an overall average of 19.5% less to live in Pasco than in major cities like New York or Chicago, 15.1% less than in smaller cities like Boston or Tampa, and 2.3% less than in popular suburbs or emerging areas like Hackensack or Valdosta.  Following five years of decline due to the Great Recession, total taxable assessed values (TTAV) have increased each year since 2014. In fact, TTAV increased by more than 56% since 2014, with the value of new construction accounting for a significant portion of that increase. 6.7%6.0% 5.1%5.2%4.4%3.8% 7.7% 4.4% 6.3% 5.2%4.9% 4.5%4.0% 3.6% 8.2% 4.6% 6.3% 5.0%4.9%4.5%3.7%3.6% 7.9% 4.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2014 2015 2016 2017 2018 2019 2020 2021 Unemployment Rate Pasco County Florida National $20,261,141  $21,433,772  $22,522,061  $22,922,358  $24,668,410  $26,992,520  $29,390,564  $31,743,617   $‐  $10,000,000  $20,000,000  $30,000,000  $40,000,000 2014 2015 2016 2017 2018 2019 2020 2021 Total  Taxable Assessed Value (in thousands) A-4          Following a COVID-related increase in outstanding delinquent taxes in 2020, totals decreased by 35.9% and fell to a low rate of only .05% of the total tax levy, which is .02% lower than 2019 and .09% lower than 2018. MAJOR COUNTY INITIATIVES  Abate flood impacts on life and property. ($866,576)  Plan, build, operate and maintain a safe, resilient, and efficient multi-modal transportation and roadway infrastructure system. ($395,329)  Efficiently operate, maintain, and expand utilities systems to provide potable water, wastewater, reclaimed water, and solid waste services to our customers. ($3,045,076)  Incorporate sustainable practices into the development and redevelopment of Pasco communities in order to provide a diversity of land uses while prioritizing alternative modes of transportation and promoting great public spaces for everyone. ($973,245)  Improve public safety response and service delivery capabilities to meet resiliency in the community’s growing and challenging needs. ($13,200,570)  Deliver services creating impactful change that enhance self-sufficiency and quality of life. ($397,428)  Provide cultural, educational, recreational, and social opportunities in Pasco County to improve overall quality of life. ($895,226)  Protect, conserve, manage, and restore the County’s natural resources including land, water, and wildlife habitat. ($324,898)  Employ sound financial management practices leading to sustainable fiscal decision-making. ($245,382)  Become a regional leader attracting, retaining, and growing businesses to achieve a strong, stable, diversified business mix, and tax and employment base. ($2,000,000)  Simplify and streamline review, inspections, and permitting processes to facilitate commercial growth to make Pasco a great place to locate and operate a business. ($1,559,535)  ‐  200  400  600  800  1,000 2014 2015 2016 2017 2018 2019 2020 2021 $970  $819  $397 $320 $254  $136 $194 $125 Outstanding Delinquent Taxes  as of September 30, 2021 (in thousands) A-5          Foster and promote relationships through a collaborative environment that provides for positive economic and community outcomes. ($258,148)  Deliver Services that exceed customer expectations in a manner that builds trust, inspires confidence, and promotes accountability. ($924,766)  Foster a Safe Organizational Culture that is characterized by open communication, high performance, and an engaged workforce. ($428,487)  Systematically develop, evaluate, and improve organizational performance. ($143,150)  Foster a transformational culture that promotes innovation. ($65,418) The following schedule reflects capital projects budgeted for $500,00 or more in CFY 2021-2022:  The complete CFY 2021-2022 Pasco County CIP consists of 101 projects for a total of $180 million. FINANCIAL INFORMATION The County's accounting records for general governmental operations are maintained on the modified accrual basis, with revenues recorded when measurable and available. Expenditures are recorded when the services or goods are received. Except for principal and interest on general long-term debt and compensated absences, liabilities, are recognized as expenditures to the extent that they have matured. Accounting records for the County's enterprise and internal service operations are maintained on the accrual basis, with the revenues recorded when earned and expenses recorded when the liabilities are incurred. Procedures have been developed for financial reporting adjustments and reconciling data in order to apply the accrual method of accounting across all funds and in accordance with GASB Statement No. 34. In developing the County's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, A-6         assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, reliability of financial records for preparing financial statements, and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the Office’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the department level by encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders, which would result in an overrun of sub-function balances, are not released until additional appropriations are made available. Depending on how the original resources were classified, encumbrances open at September 30, 2021, are reported as “unassigned” or “assigned.” Capital Assets Under Section 273.02, Florida Statutes, “property” means equipment, fixtures, and other tangible personal property of a non-consumable and non-expendable nature, costing over $1,000, with a normal expected life of one year or more, and which shall be periodically reviewed for inventory purposes. These properties, as well as the capital assets of the County, are used in the performance of governmental and business-type activities. The County capitalizes all tangible assets with a value in excess of $5,000 and recognizes depreciation based upon their useful lives (see Note 1H in the Notes to Financial Statements). In accordance with U.S. GAAP, capital assets in Pasco County are recorded at either historical (original) cost, or estimated historical cost, if original cost data is not available, except for contributed property, which is recorded at its estimated fair value at the date of contribution. In accordance with GASB Statement No. 34, the County has recorded and reported all infrastructure assets acquired since 1980. Infrastructure assets include streets, roads, sidewalks, and bridges. Independent Audit Section 218.39, Florida Statutes, requires an independent certified public accountant's financial audit of counties in the State. Pasco County has complied with this requirement, and the report of our independent auditor, Carr, Riggs & Ingram LLC, has been included in this report. As a recipient of federal awards and state assistance, the County is responsible for maintaining an adequate internal control framework to ensure compliance with applicable laws and regulations related to these assistance programs. The independent certified public accountant issues a report on compliance and internal control over compliance in the annual Single Audit, which covers major federal grant programs, and in the annual Florida Single Audit, which covers major state grant programs. The federal and state single audits were designed to meet the requirements of Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as well as Section 215.97, Florida Statutes, respectively. The independent certified public accountants’ Single Audit Report is issued separately. Reporting Achievement The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Pasco County, Florida, for its ACFR for the fiscal year ended September 30, 2020. This was the thirty-eighth consecutive year Pasco County has achieved this prestigious award. To be awarded a certificate of achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both GAAP and applicable legal requirements. A certificate of achievement is valid for a period of one year only. A-7 We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements We would like to express our appreciation to the Financial Services Management Team and all teammates of the Pasco County Clerk & Comptroller’s Financial Services Department, for their dedicated service in preparing the Annual Comprehensive Financial Report. We would also like to offer our gratitude to the Board of County Commissioners and its staff, as well as the respective offices and staff of the Pasco County Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector, all of whom have been instrumental in the completion of this report. We want to further extend our thanks to all the departments and agencies outside the County that contributed financial information for use in this report. Sincerely, Nikki Alvarez-Sowles, Esq., CPM Clerk of Circuit Court and County Comptroller Chief Financial Officer Heather Grimes, MBA, CPM Chief Administrative Officer Matthew Lazar MBA, CPM Finance Director A-8         A-9         A-10         PASCO COUNTY, FLORIDA FOR THE YEAR ENDED SEPTEMBER 30, 2021 PRINCIPAL OFFICIALS as of September 30, 2021 BOARD OF COUNTY COMMISSIONERS Ron Oakley, Chairman – District 1 Kathryn Starkey, Vice Chairman – District 3 Mike Moore – District 2 Christina Fitzpatrick – District 4 Jack Mariano – District 5 COUNTY ADMINISTRATOR COUNTY ATTORNEY Dan Biles Jeffrey Steinsnyder CLERK OF CIRCUIT COURT AND COUNTY COMPTROLLER Nikki Alvarez-Sowles, Esq., CPM PROPERTY APPRAISER Mike Wells SHERIFF Chris Nocco SUPERVISOR OF ELECTIONS Brian Corley TAX COLLECTOR Mike Fasano A-11 FINANCIAL SECTION •Independent Auditors’ Report •Management’s Discussion and Analysis •Basic Financial Statements Government-Wide Financial Statements Fund Financial Statements Notes to Financial Statements •Required Supplementary Information •Combining and Individual Fund Statements and Schedules       INDEPENDENT AUDITORS’ REPORT      Distinguished Members of the   Board of County Commissioners  Pasco County, Florida     Report on the Financial Statements  We have audited the accompanying financial statements of the governmental activities, the business‐type  activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining  fund information of Pasco County, Florida (the County) as of and for the year ended September 30, 2021 and  the related notes to the financial statements, which collectively comprise the County’s basic financial  statements as listed in the table of contents.   Management’s Responsibility for the Financial Statements  Management is responsible for the preparation and fair presentation of these financial statements in  accordance with accounting principles generally accepted in the United States of America; this includes the  design, implementation, and maintenance of internal control relevant to the preparation and fair presentation  of financial statements that are free from material misstatement, whether due to fraud or error.  Auditors’ Responsibility  Our responsibility is to express opinions on these financial statements based on our audit. We conducted our  audit in accordance with auditing standards generally accepted in the United States of America and the  standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller  General of the United States. Those standards require that we plan and perform the audit to obtain reasonable  assurance about whether the financial statements are free from material misstatement.  An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the  financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of  the risks of material misstatement of the financial statements, whether due to fraud or error. In making those  risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair  presentation of the financial statements in order to design audit procedures that are appropriate in the  circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal  control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of  accounting policies used and the reasonableness of significant accounting estimates made by management, as  well as evaluating the overall presentation of the financial statements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our  audit opinions.  Opinions  In our opinion, the financial statements referred to above present fairly, in all material respects, the respective  financial position of the governmental activities, the business‐type activities, the aggregate discretely  presented component units, each major fund, and the aggregate remaining fund information  of Pasco County,  Florida, as of September 30, 2021, and the respective changes in financial position, and, where applicable, cash  flows thereof for the year then ended in accordance with accounting principles generally accepted in the  United States of America.   B-1 Emphasis of Matters  Corrections of Prior Period  As described in Note 19 to the financial statements; governmental activities – net position beginning of the  year and aggregate remaining fund information – fund balance beginning of the year, were restated in the  amount of $6,125,936 and component units – fund balance beginning of the year, were restated in the amount  of $2,160,062 due to a correction of the prior period.  Our opinions were not modified with respect to these  matters.  Corrections of Misstatements  As discussed in Note 19 to the financial statements, the 2021 financial statements have been restated to  correct a misstatement. Our opinion is not modified with respect to this matter.   Changes in Accounting Principle  As discussed in Note 1 to the financial statements, in the year ended September 30, 2021, the County adopted  the provisions of Governmental Accounting Standards Board (“GASB”) Number 84, Fiduciary Activities. As a  result of the implementation of GASB Number 84, the County reported a restatement for the change in  accounting principle which is described in Note 19. Our opinion is not modified with respect to this matter.    As discussed in Note 19 to the financial statements, in the year ended September 30, 2021, the County has  adjusted opening net position for the discretely presented component units due to evaluation of GASB Number  61, The Financial Reporting Entity: Omnibus. Our opinion is not modified with respect to this matter.  Other Matters  Required Supplementary Information   Accounting principles generally accepted in the United States of America require that the management’s  discussion and analysis, budgetary comparison information, and other required supplementary information as  listed in the table of contents be presented to supplement the basic financial statements. Such information,  although not a part of the basic financial statements, is required by the Governmental Accounting Standards  Board, who considers it to be an essential part of financial reporting for placing the basic financial statements  in an appropriate operational, economic, or historical context. We have applied certain limited procedures to  the required supplementary information in accordance with auditing standards generally accepted in the  United States of America, which consisted of inquiries of management about the methods of preparing the  information and comparing the information for consistency with management’s responses to our inquiries, the  basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.  We do not express an opinion or provide any assurance on the information because the limited procedures do  not provide us with sufficient evidence to express an opinion or provide any assurance.  Other Information   Our audit was conducted for the purpose of forming opinions on the financial statements that collectively  comprise the County’s basic financial statements. The introductory section, combining and individual nonmajor  fund financial statements, budgetary comparison schedules, statistical section and the schedules of receipts,  disbursements, and balances in compliance with Section 714(3) of the indenture trust are presented for  purposes of additional analysis and are not a required part of the basic financial statements. The schedule of  expenditures of federal awards and state financial assistance and related notes is presented for purposes of  additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative  Requirements, Cost Principles, and Audit Requirements for Federal Awards and Chapter 10.550, Rules of the  Auditor General, and is also not a required part of the basic financial statements.     B-2 The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal  awards and state financial assistance are the responsibility of management and were derived from and relate  directly to the underlying accounting and other records used to prepare the basic financial statements. Such  information has been subjected to the auditing procedures applied in the audit of the basic financial statements  and certain additional procedures, including comparing and reconciling such information directly to the  underlying accounting and other records used to prepare the basic financial statements or to the basic financial  statements themselves, and other additional procedures in accordance with auditing standards generally  accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial  statements and the schedule of expenditure of federal awards and state financial assistance are fairly stated  in all material respects in relation to the basic financial statements as a whole.  The introductory and statistical sections and the schedules of receipts, disbursements, and balances in  compliance with Section 714(3) of the indenture trust have not been subjected to the auditing procedures  applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide  any assurance on them.  Other Reporting Required by Government Auditing Standards   In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2022, on our  consideration of Pasco County, Florida’s internal control over financial reporting and on our tests of its  compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.  The purpose of that report is solely to describe the scope of our testing of internal control over financial  reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of  Pasco County, Florida’s internal control over financial reporting or on compliance. That report is an integral  part of an audit performed in accordance with Government Auditing Standards in considering the Pasco County,  Florida’s internal control over financial reporting and compliance.     Tampa, Florida  May 31, 2023     B-3 MANAGEMENT’S DISCUSSION AND ANALYSIS Provides an objective analysis of the County’s financial activities. MANAGEMENT’S DISCUSSION AND ANALYSIS Management’s discussion and analysis provides an overview of the financial activities of Pasco County, Florida (County), for the fiscal year ended September 30, 2021. Readers are encouraged to consider the information presented here in conjunction with additional information provided in the Letter of Transmittal, on page A-1, and in the County’s financial statements that begin on page D-1. FINANCIAL HIGHLIGHTS Government-wide Statement As of September 30, 2021, the County’s assets and deferred outflow of resources exceeded its liabilities and deferred inflow of resources by $2.655 billion (net position), an increase of $273.2 million over the prior year. The total net position of $2.655 billion is comprised of the following: (1) $947.3 million is restricted as a result of constraints imposed by parties outside the County, such as debt covenants, laws, or regulation; (2) $1.735 billion of net investment in capital assets, which includes property and equipment, net of accumulated depreciation, reduced for outstanding debt related to the purchase or construction of those capital assets; and (3) a deficit of $27.6 million in unrestricted net position. Fund Statements For the fiscal year ended September 30, 2021, governmental funds reported a combined ending fund balance of $847.6 million, an increase of $152.3 million (or 21.9%) over the prior year. Of the total, $267.4 million is available for spending at the County’s discretion (assigned or unassigned fund balance), subject to the intent of the Board of County Commissioners or the Office of the Clerk & Comptroller, to which the authority to assign amounts for specific purposes has been delegated by the Board. On September 30, 2021, the fund balance of the County’s General Fund was $84.0 million, representing an increase of $15.9 million (or 23.4%) over the prior year. $80.8 million of the fund balance total was assigned or unassigned. Governmental fund revenues increased by an overall $35.4 million, or 4.8%, from the prior year. This can be attributed to an increase of $51.7 million in charges for services and fines and forfeitures, an $46.8 million increase in special assessments, a $29.7 million increase in taxes, a decrease in intergovernmental revenues of $63.0 million, and a decrease of $18.0 million in licenses and permits, a $15.1 million decrease in interest, and an increase in miscellaneous revenue of $3.3 million. As of September 30, 2021, there was a $192.1 million net increase in bonds payable. This can be attributed mostly due to the additional tranches for the general obligation bonds referendum passed November 6, 2018. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Pasco County’s Basic Financial Statements. The Basic Financial Statements include three components: (1) Government-wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Financial Statements. This Annual Comprehensive Financial Report also contains other required supplementary information and supplemental information, in addition to the basic financial statements themselves. C-1 Government-wide Financial Statements The government-wide financial statements are designed to provide a broad overview of the County’s finances in a manner similar to a private-sector business. The information consists of the following statements: The Statement of Net Position presents information on all of the County’s assets and liabilities, as well as the deferred inflows/outflows of resources. The differences between the two are then reported as net position. Over time, changes in net position may serve as an indicator as to whether the financial position of the County is strengthening or weakening. The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. Changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Therefore, some of the revenues and expenses reported in the statement of activities will only result in cash flows in future periods. For example, certain uncollected taxes are shown as revenues, although cash receipts will occur in the following year. Also, an increase in earned, unused vacation leave is recorded as an expense, but the related cash outflows will occur in the future. Both financial statements distinguish between activities of the County supported primarily by program revenues, taxes, and intergovernmental revenues (governmental activities) and activities that recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, physical environment, transportation, economic environment, human services, culture and recreation, and court-related functions. The business-type activities of the County are the Water and Wastewater Unit and the Solid Waste Disposal and Resource Recovery System. In the government-wide financial statements, emphasis is placed on the position of governmental activities and business-type activities and on the change in net position. The government-wide financial statements include not only the County itself (known as the primary government), but also legally separate entities, the Pasco County Housing Finance Authority and Connected Cities, for which the County is financially accountable. The financial information for these component units is reported separately from the financial information of the primary government. To obtain financial statements of theses discretely presented component units, see Note 1, Summary of Significant Accounting Policies, Reporting Entity, in the Notes to Financial Statements. The J. “Ben” Harrill Villages of Pasadena Hills Stewardship District, the other discretely presented component unit, had no financial activities during the year. Fund Financial Statements A fund is a subgrouping of related accounts used to maintain control over resources segregated for specific activities or objectives. The County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements, including those involving legislative, administrative and contractual obligations. All of the County’s funds can be divided into three categories: governmental, proprietary, and fiduciary. Governmental Funds Most of the County’s basic services are reported in governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. Consequently, governmental fund financial statements provide a detailed focus on near-term inflows and outflows of spendable resources, as well as on C-2 balances of spendable resources available at the end of the fiscal year. This information may be useful in evaluating a government’s near-term financing requirements. Since the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to perform a comparison of the information presented for the governmental funds with similar information for governmental activities in the governmental-wide financial statements. This will provide readers with a better understanding the long-term impact of the government’s near-term financing decisions. As of September 30, 2021, the County maintains 148 individual governmental funds. Information regarding these funds can be located within both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and changes in fund balance on pages D-5 and D-7 respectively. The financial information represented in these statements shows a breakdown of the County’s General Fund and American Rescue Plan Act Fund, with the remaining funds represented as Other Governmental Funds. To view financial information for the remaining non-major funds readers should reference the Combining and Individual Fund Statements and Schedules section of this document. Within this section, readers will not only see financial information related to the Board of County Commissioners, but also the Constitutional Officers’. The County also adopts an annual budget for its general, special revenue, debt service, and capital project funds. Budgetary comparison schedules have been provided for these funds to demonstrate budgetary compliance. Proprietary Funds The County maintains two different types of proprietary funds. The County uses enterprise funds to account for its major business-type funds: the Water and Wastewater Unit and the Solid Waste Disposal and Resource Recovery System, which are presented as business-type activities in the government-wide financial statements. In addition, internal service funds are used to accumulate and allocate costs among the County’s various functions. The County uses the internal service funds to account for equipment service, County insurance, County self- insurance, Clerk and Comptroller’s insurance, and the Sheriff’s health insurance. As these operations predominantly benefit governmental, rather than business-type functions, they are included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements can be found in the Basic Financial Statements. Individual fund data for the internal service funds are provided in the Combining and Individual Fund Statements and Schedules section of this report. The basic proprietary fund financial statement can be found on pages D-9 to D-13 of this document. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not included in the government-wide financial statements because the resources of these funds are not available to support the County’s own programs. However, the separate Statement of Fiduciary Net Position – Custodial Funds and Statement of Changes in Fiduciary Net Position – Custodial Funds are included in the Basic Financial Statements since the County has custodial responsibility. Additionally, the individual custodial funds are included in the Combining and Individual Fund Statements and Schedules section of this report. The basic fiduciary fund financial statements can be found on page D-14 of this document. C-3 Notes to the Financial Statements The notes provide additional information essential for a full understanding of the data provided in both the government-wide financial and fund financial statements. The notes to the financial statements can be found starting on page E-1, with the index starting on the first page. Other Information The combining statements for the non-major funds, internal service funds, agency funds, and individual fund budget-to-actual comparison schedules, are found in the Combining and Individual Fund Statements and Schedules section of this report beginning on G-1. Additional information of interest to the reader can be found within the Statistical Section, which starts on page H-1. Government-Wide Financial Analysis In accordance with the requirements of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments (GASBS No. 34), the government-wide financial statements have been prepared using accrual accounting for all of the County’s activities. Accrual accounting measures not just current assets and liabilities, but also long-term assets and liabilities like capital assets and bond-issue debt. The use of accrual accounting results in the reporting of all revenues and all costs of providing services each year, not just those received or paid in the current year or soon after year-end, as does modified accrual basis accounting. As noted earlier, net position may serve, over time, as a useful gauge of a government’s financial position. As of September 30, 2021, the County is able to report positive balances in all three categories of net position for both governmental and business-type activities. C-4 NET POSITION AND ACTIVITIES The County’s total net position on September 30, 2021, was $2.655 billion. The largest portion of the County’s net position, $1.735 billion (or 65.4%), is reflected in its investment in capital assets (e.g., land, buildings, equipment, and infrastructure), less any related debt outstanding used to acquire those assets. Since Pasco County uses these capital assets to provide services to its citizens, the net assets represented by “investment in capital assets, net of related debt” are not available for future spending. Although the County’s investment in capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Pasco County’s net position includes a restricted $947.3 million (or 35.7%) subject to external restrictions on how funds may be used, such as those imposed by debt covenants, grantors, laws, and regulations. The deficit balance of $27.6 million (or 1.0%) is unrestricted, and accounts for the shortfall the county would face in the event it would have to liquidate all non- capital liabilities. These deficits can be partly attributed to the implementation of GASB Statements No. 68, 71 and 75. The changes in net position for the years ended September 30, 2021, and 2020 are presented in the following table, followed by information regarding those governmental and business-type activities contributing most significantly to the changes. 2020 2021 2020 2021 2020 2021 Current Assets: Unrestricted 881,002$ 1,116,366$ 396,962$ 354,758$ 1,277,964$ 1,471,125$ 15.1% Noncurrent assets: Restricted - - 193,522 301,096 193,522 301,096 55.6% Unrestricted 52,034 51,467 11,466 9,981 63,500 61,448 -3.2% Capital, net 1,199,714 1,360,463 782,566 826,878 1,982,280 2,187,341 10.3% Total assets 2,132,750 2,528,296 1,384,516 1,492,713 3,517,266 4,021,009 14.3% Deferred outflows of resources: Pension related 163,756 112,174 8,897 3,832 172,653 116,006 -32.8% OPEB related 15,382 14,839 808 779 16,190 15,618 -3.5% Deferred amounts on debt refundings - - 5,383 3,693 5,383 3,693 -31.4% Deferred amounts related to acquisition - - 6,653 6,357 6,653 6,357 -4.4% Total deferred outflows 179,138 127,013 21,741 14,661 200,879 141,674 -29.5% Liabilities: Payable from current assets 100,701 105,204 16,734 13,810 117,435 119,014 1.3% Payable from restricted assets - - 25,422 26,285 25,422 26,285 3.4% Noncurrent liabilities 757,343 735,988 394,474 326,679 1,151,817 1,062,667 -7.7% Total liabilities 858,044 841,192 436,630 366,774 1,294,674 1,207,966 -6.7% Deferred inflows of resources: Deferred amounts on pension 6,012 253,272 461 20,317 6,473 273,589 4126.6% Deferred amounts related OPEB 27,733 24,907 1,457 1,308 29,190 26,215 -10.2% Total deferred inflows of resources 33,745 278,179 1,918 21,625 35,663 299,804 740.7% Net Position: Net investment in capital assets 865,085 1,152,236 506,048 582,956 1,371,133 1,735,191 26.6% Restricted 483,811 646,191 193,522 301,096 677,333 947,288 39.9% Unrestricted 71,203 (262,490) 268,139 234,924 339,342 (27,566) -108.1% Total net position 1,420,099$ 1,535,938$ 967,709$ 1,118,975$ 2,387,808$ 2,654,913$ 11.2% Net Position Pasco County, Florida Percent Change (in thousands) Governmental Business-Type Activities Activities Total – All Activities C-5 Governmental Activities Governmental activities increased Pasco County’s net position by $122.0 million, or 8.6%, during fiscal year 2021. The cost of all governmental activities in 2021 was $723.8 million, 14.0% higher than in 2020. In addition, the amount taxpayers paid through property, sales, communications, fuel, and tourist development taxes increased by approximately 6.9%, to $355.7 million, in 2021. This increase can be attributed to the continued influx of population during fiscal year 2021. Those who directly benefit from the programs paid some of the cost ($308.2 million) through charges for services, while other governments and organizations subsidized programs with grants and contributions, as well as shared revenues ($157.2 million). The pie chart in the diagram on the next page demonstrates how the County earns and receives a majority of the available revenue during the course of the fiscal year. The largest portion, at 35% of the total revenue receipted, is related to charges for services. Property taxes also increased by 8.7% due to a rise in home ownership and improved property values. Percent Change 2020 2021 2020 2021 2020 2021 Revenues: Program revenues: Charges for services 168,249 308,192 207,278$ 287,114$ 375,527$ 595,306$ 58.5% Operating grants and contributions 160,915 71,955 - - 160,915 71,955 -55.3% Capital grants and contributions 3,734 15,899 20,088 32,923 23,822 48,822 104.9% General revenues: Property taxes 266,656 289,826 - - 266,656 289,826 8.7% State-shared revenue 49,724 69,395 - - 49,724 69,395 39.6% Other taxes 65,954 65,894 - - 65,954 65,894 -0.1% Interest earnings 16,556 1,442 12,952 1,263 29,508 2,705 -90.8% Miscellaneous 18,909 23,153 1,372 1,936 20,281 25,089 23.7% Total revenues 750,697 845,756 241,690 323,236 992,387 1,168,992 17.8% Expenses: General government 112,870 72,691 - - 112,870 72,691 -35.6% Public Safety 317,024 309,562 - - 317,024 309,562 -2.4% Physical environment 14,556 40,029 - - 14,556 40,029 175.0% Transportation 78,383 98,387 - - 78,383 98,387 25.5% Economic environment 16,865 51,611 - - 16,865 51,611 206.0% Human services 22,328 27,338 - - 22,328 27,338 22.4% Culture and recreation 40,406 60,542 - - 40,406 60,542 49.8% Court-related 17,170 387 - - 17,170 387 -97.7% Interest/LT Debt 15,590 63,244 - - 15,590 63,244 305.7% Water/Sewer - - 130,448 134,606 130,448 134,606 3.2% Solid Waste Disposal/Resource Recovery - - 36,029 37,364 36,029 37,364 3.7% Total expenses 635,192 723,791 166,477 171,970 801,669 895,761 11.7% Increase in net position before transfers 115,505 121,965 75,213 151,266 190,718 273,231 43.3% Transfers (net) 1,089 - (1,089) - -- - Change in net position 116,594 121,965 74,124 151,266 190,718 273,231 43.3% Net position, beginning as restated - Note 19 1,303,505 1,413,973 893,585 967,709 2,197,090 2,381,682 8.4% Net position, ending 1,420,099$ 1,535,938$ 967,709$ 1,118,975$ 2,387,808$ 2,654,913$ 11.2% Pasco County, Florida Net Position (in thousands) Governmental Business-Type Activities Activities Total – All Activities C-6 C-7 Business-type Activities As stated earlier, the County has two business-type major funds, the Water and Wastewater Unit and the Solid Waste Disposal and Resource Recovery System. The Water and Wastewater Unit provides a potable water supply and its distribution, as well as wastewater collection and treatment, disposal, and reuse. These services are provided through facilities owned by the County and through contracts with other entities. The water distribution system, including pump stations, treatment plants, water mains, and water storage facilities, is connected to two major supply sources - Tampa Bay Water (Starkey, Cypress Creek, and Lake Bridge) and twenty-five individual water-supply wells throughout the County. The County also operates thirteen wastewater treatment plants, a residual management facility, and a grease facility. Disposal of wastewater is primarily accomplished through the use of reclaimed water systems, spray irrigation, evaporation/percolation ponds, and cooling tower water for the County’s Waste-to Energy Facility. As is expected in a growing county, the County’s enterprise fund revenue continues to experience an overall increase. The increase in revenue has also led to a corresponding increase in expenses, as the County attempts to maintain the expected levels of service that come with Water and Wastewater and the Solid Waste Disposal and Resource Recovery Units. As can be seen in the diagram on the next page, a majority of the receipted revenue for the enterprise funds comes in the form of the always increasing charges for services. With an increase in county population, this has led to an increase in the number of customers the enterprise funds serve during the course of the fiscal year. C-8 The County annually updates its Capital Improvement Plan, which produces population and wastewater flow projections, examines service areas, wastewater treatment, and disposal alternatives, and includes recommendations concerning construction and implementation schedules. The Solid Waste Disposal and Resource Recovery System is an integrated approach to waste management. Collection is primarily achieved by private hauling firms licensed by the Board of County Commissioners. Processed solid waste is trucked to the mass-burn Resource Recovery Facility (the “Facility”) or to the East Pasco Transfer Station for subsequent transportation to the Facility. The Facility converts solid waste to electrical power through a combustion process that generates approximately 31 megawatts of electricity, for sale to Duke Energy under a power purchase agreement. The Facility has a current capacity of 1,200 tons per day. Non-processed solid waste disposal is provided for by landfill facilities. The County also actively pursues recycling, following the mandate provided for in the Recycling Act. The recycling rate in the County was 56.9% with the addition of waste-to-energy credits (2020 rate published by the State of Florida, the latest reporting period available). This is above with the State’s rate of 50%. The activities of the Water and Wastewater Unit, and the Solid Waste Disposal and Resource Recovery System are analyzed at C-11 in the proprietary funds section of the Financial Analysis of the County’s Funds. FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS As noted earlier, Pasco County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. This information is useful in assessing Pasco County’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the net resources available for spending at the end of the fiscal year. Governmental fund types include the general, special revenue, debt service, and capital projects funds. C-9 As noted previously, as of September 30, 2021, Pasco County governmental funds reported an increase in combined fund balances of $146.2 million over the prior year. Of the total combined ending fund balances of $847.6 million, 68.4%, or $580.2 million, represents restricted amounts that can only be used for specific purposes imposed by external constraints such as bond covenants, grantors, or regulations of other governments; $61.7 million or 7.3% is non- restricted; and 24.3%, or $205.7 million, are amounts assigned by either the Board, or the Office of the Clerk Comptroller, to be used for specific purposes that are neither restricted nor committed, such as disaster recovery. Major Governmental Funds The General Fund, the chief operating fund of the County, increased by $15.9 million during fiscal year 2021. In FY 2021, General Fund revenues increased by $50.7 million, or 15.9%, from fiscal year 2020. The net increase in revenue is attributed to an increase of $17.2 million in the collection of taxes, a net decrease in intergovernmental revenues of $2.0 million, a $34.7 million increase in charges for services, a minor net decrease in licenses and permits and fines and forfeitures, $3.3 million decrease in interest and other earnings, and a $4.1 million increase in miscellaneous revenue. With Pasco’s expansion, expenditures also grew by $35.7 million, or 13.7%. The increased total ending fund balance is comprised of the additional revenue, together with increased expenses, transfers, and adjustments to the beginning fund balance. For fiscal year 2021, the American Rescue Plan Act met the requirements to be reported as a major fund. The American Rescue Plan Act Fund is used to account for funding received from the American Rescue Plan Act of 2021, to assist in the recovery from the economic and health effects of the COVID-19 pandemic. This was a newly established fund for fiscal year 2021 and due to federal requirements only $6.6 million in revenues were recorded with $47.2 million being deemed unearned revenue. Non-major Governmental Funds Those funds that do not meet GASB Statement No. 34 criteria for major fund classification are considered non-major. Total fund balances of all non-major special revenue funds decreased by $43.4 million from the prior year. The decrease in fund balance is, in part, due to the net effect of a significant increase in general government expenditures. Debt service funds, all of which are classified as non-major, are used to account for the accumulation of resources for, and the payment of long-term debt principal and interest. During fiscal year 2021, there was an overall fund balance decrease of $3.3 million. Capital projects service funds, which account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds), exhibited an overall increase in fund balances of $183.2 million. General Governmental Functions For the purpose of this section, general governmental functions are defined as those that include the General, Special Revenue, Debt Service, and Capital Projects Funds. This data is the result of the application of the modified accrual basis of accounting for general governmental functions. Revenues for general governmental functions totaled $845.8 million in fiscal year 2021, an increase of $95.1 million, or 12.7% over the prior year. An increase of $23.2 million in tax revenue was realized, along with a $46.7 million increase in special assessments. Licenses and permits decreased by $18.0 million, intergovernmental revenues decreased $62.9 million, charges for services, fines, and forfeitures increased by $51.7 million, and interest, other earnings, and miscellaneous revenues decreased by $11.8 million. C-10 Expenditures for general fund governmental functions totaled $723.8 million in fiscal year 2021, an increase of $88.6 million, or 14.0%, from 2020. The cost of general government decreased by $40.2 million, public safety decreased $7.5 million, physical environment and transportation increased by $23.7 million, economic environment increased by $34.8 million, human services increased $5.0 million, culture and recreation increased $20.1 million, court-related expenditures decreased $16.8 million, and interest and long-term debt increased by $69.5 million. Proprietary Funds Proprietary funds statements provide the same type of information found in the government- wide financial statements, because they follow the accrual method of accounting; however, the information is in more detail. The County’s proprietary funds include enterprise funds, comprised of the Water and Wastewater Unit Fund and the Solid Waste Disposal and Resource Recovery System Fund, both of which are classified as major funds of the County, and internal service funds that account for equipment and insurance services. The Water and Wastewater Unit Fund had total net position of $884.3 million on September 30, 2021, which represented a $121.3 million increase over fiscal year 2020. The increase was driven by operating income increasing by $72.0 million to $96.1 million, while non-operating revenues decreased by $9.1 million, resulting in a net contribution before capital grants and contributions of $62.9 million; capital grants contributed $11.6 million. The Solid Waste Disposal and Resource Recovery System Fund’s net position at year-end was $234.7 million, which represented an increase of $30.0 million over 2020, and includes the operating net income and non-operating revenues for 2021. This increase was the result of an increase of $2.5 million in charges for services revenue, an increase of just under $485,000 in operating expenses, and a $28.5 million increase in funds available at the start of the year. The Internal Service Funds had net position at year-end of $106.8 million, an increase of $15.6 million over the prior year net position of $91.2 million. An increase in charges for services revenue, along with lesser increases in operating expenses netted an operating income of $5.5 million. Interest and investment earnings declined by almost $1.5 million due to changes in the economy. Capital contributions increased from $1.3 to $1.7 million, and transfers netted an $8.1 million increase over 2020. General Fund Budgetary Highlights The budget and actual comparison statement for the General Fund displays the original adopted budget, the final revised budget, and actual costs. The original budget, as approved, may be revised during the year for a number of reasons. The General Fund’s amendments and supplemental appropriations for the year were not material. Actual revenues for fiscal year 2021 fell short of the final budget by $15.1 million. While there were an additional $16.8 million in intergovernmental revenues and charges for services came in $15.2 million over budget, miscellaneous revenue received was $47.5 less than what was budgeted. The largest decrease in expenses was in the general government category, with only $5.6 million expended, compared to the $40.1 million budgeted. C-11 Capital Assets The County’s capital assets, for both governmental and business-type activities on September 30, 2021, totaled approximately $2.2 billion, net of accumulated depreciation. Capital assets include land, buildings, improvements other than buildings, equipment, construction in process, infrastructure, and intangibles. Infrastructure includes roads, streets, and sidewalks. The County’s intangible assets include easements and internally generated software. The balances are summarized below (in thousands). The increase in total capital assets from the prior year was 10.3%. Additional information about Pasco County’s capital assets can be found in the Notes to Financial Statements (Note 7). Debt Administration For the fiscal year ending September 30, 2021, Pasco County had (net) total outstanding bonded debt of $584.1 million. Of this amount, $329.1 million comprises debt related to governmental activities, and $255.0 million is related to business-type activities. All bonded debt of the County is in the form of revenue bonds. Additional information about Pasco County’s long-term debt issues can be found in the Notes to Financial Statements (Note 8). Percent Change 2020 2021 2020 2021 2020 2021 Land $ 217,703 $ 226,470 $ 24,942 25,083$ 242,645$ 251,553$ 3.7% Buildings 249,371 266,638 169,860 169,910 419,231 436,548 4.1% Improvements 108,033 111,973 1,065,660 1,151,259 1,173,693 1,263,232 7.6% Equipment 223,142 233,113 11,802 13,343 234,944 246,456 4.9% Construction in process 271,649 401,939 89,825 76,019 361,474 477,958 32.2% Infrastructure 687,258 714,046 - - 687,258 714,046 3.9% Intangibles 24,538 29,285 14,302 18,513 38,840 47,798 23.1% Total capital assets 1,781,694 1,983,464 1,376,391 1,454,127 3,158,085 3,437,591 8.9% Accumulated depreciation (581,980) (623,001) (593,825) (627,248) (1,175,805) (1,250,249) 6.3% Total capital assets, net $ 1,199,714 $ 1,360,463 $ 782,566 826,879$ 1,982,280$ 2,187,342$ 10.3% Governmental Business-Type Total Activities Activities All Activities C-12 Debt Ratings The following table shows the ratings for each County bond issue on September 30, 2021: C-13 The highest quality ratings available from the respective services are as follows: Fitch AAA; Moody’s Aaa. With the exception of the bank qualified issue (1) and those issues which are uninsured, and for which a stand-alone rating is presented (2), all Pasco County bond issues are insured, and the payment of principal and interest is guaranteed. Such insurance is non- cancellable. (Note: Bonds with higher ratings offer cost savings to issuers like Pasco County) Currently Known Facts and Conditions Since 2014, there has been an increase of taxable assessed values of about 57%. The main source of this increase is due to increased new construction that comes with the growing county population. The approved total County budget for fiscal year 2022 increased by $336.5 million, or 24.0%, to $1.736 billion. The County continues to cautiously pursue new initiatives by ensuring they can be sustained in the long run. Many actions have taken place that will have long-standing effects. To ensure a safe and secure community, the County has invested funds to update and add existing infrastructure for multiple fire stations throughout the community. State roads, as well as county-maintained thoroughfares, are being expanded to accommodate Pasco’s burgeoning population. Single- family home development is in full swing and affordable housing remains in Pasco’s sights as new residents from other parts of the U.S. continue to arrive at a steady pace. Economic Factors and Next Year’s Budgets and Rates Pasco County considered many factors in preparing the budget for the 2022 fiscal year, including the following: - Total taxable assessed values have increased each year since 2014, following five years of decline. In fact, TTAV has increased by approximately 57%, with the value of new construction accounting for a significant portion of that increase. - In 2021, the amount of delinquent taxes totaled $124,904. This is about 35.9% lower than 2020, and well below the 10-year average of $513,654. - The population of Pasco County has experienced rapid growth every year since 2010 (437,500), hitting an all-time high in 2021 of 575,891. The County’s population is projected to continue growing at a steady pace for the foreseeable future. - Pasco County’s unemployment rate for the fiscal year ended September 30, 2021, was 4.4%. This reflects a decrease of 3.3% from 2020, when the COVID-19 pandemic greatly affected the survival of local business and commerce. With mandated stay-at-home orders being lifted and reduced public health risks due to vaccinations, work-at-home arrangements, and social distancing, the community is once again thriving. Requests for Information This financial report is designed to provide users with a general overview of Pasco County’s finances, as well as demonstrate the County’s accountability. Any questions concerning information provided in this report, or requests for additional information, should be addressed to the Finance Director, Clerk of the Circuit Court, Pasco County, 38053 Live Oak Avenue, Dade City, FL 33523. Additional financial information, including financial reports from prior years, can also be found at the following website: https://www.pascoclerk.com/ C-14 BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FUND FINANCIAL STATEMENTS PASCO COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2021 PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE COMPONENT ACTIVITIES ACTIVITIES TOTAL UNIT ASSETS Current assets: Cash and cash equivalents 532,455,951$ 167,725,961$ 700,181,912$ 121,849$ Investments 490,494,936 168,517,727 659,012,663 122,424 Accounts receivable, net 21,384,397 15,280,066 36,664,463 74,690 Notes receivable 5,718,560 - 5,718,560 - Assessments receivable 17,550,678 - 17,550,678 - Due from other governments 35,883,727 1,370,705 37,254,432 - Prepaid items 10,619,337 - 10,619,337 - Inventories 267,931 1,864,011 2,131,942 - Other assets 1,990,649 - 1,990,649 - Total current assets 1,116,366,166 354,758,470 1,471,124,636 318,963 - - Noncurrent assets: Restricted cash and cash equivalents - 216,783,147 216,783,147 - Restricted investments - 84,312,432 84,312,432 - Notes receivable 51,467,038 - 51,467,038 - Due from other governments - 9,500,257 9,500,257 - Water entitlements - 480,302 480,302 - Capital assets: Land 226,469,643 25,082,593 251,552,236 - Intangibles 29,285,282 18,512,680 47,797,962 - Buildings 266,637,985 169,909,792 436,547,777 - Improvements other than buildings 111,972,846 1,151,259,076 1,263,231,922 - Equipment 233,113,625 13,342,868 246,456,493 - Contruction in process 401,938,612 76,018,731 477,957,343 - Infrastructure 714,046,409 - 714,046,409 - Less accumulated depreciation (623,001,307) (627,247,796) (1,250,249,103) - Capital assets, net 1,360,463,095 826,877,944 2,187,341,039 - Total noncurrent assets 1,411,930,133 1,137,954,082 2,549,884,215 - Total assets 2,528,296,299 1,492,712,552 4,021,008,851 318,963 - - DEFERRED OUTFLOWS OF RESOURCES Pension related 112,173,645 3,831,917 116,005,562 - OPEB related 14,838,861 779,349 15,618,210 - Deferred charges on debt refundings - 3,693,408 3,693,408 - Deferred charges on acquisitons - 6,357,120 6,357,120 - Total deferred outflows of resources 127,012,506 14,661,794 141,674,300 - - - - The notes to financial statements are an integral part of this statement. D-1 PASCO COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2021 PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE COMPONENT ACTIVITIES ACTIVITIES TOTAL UNIT LIABILITIES Current liabilities: Accounts payable 36,091,156$ 10,996,682$ 47,087,838$ -$ Contracts payable 6,805,483 1,021,140 7,826,623 - Accrued liabilites 12,702,239 1,579,283 14,281,522 - Claims payable 7,872,202 - 7,872,202 - Due to other governments 19,739,031 22,849 19,761,880 12,938 Deposits 6,531,026 - 6,531,026 - Interest payable 4,756,861 - 4,756,861 - Other liabilities 22,289 - 22,289 - Compensated absences 2,673,485 189,931 2,863,416 - Notes payable 2,645,000 - 2,645,000 - Bonds payable, net 5,365,077 - 5,365,077 - Payable from restricted assets: Deposits - 10,018,822 10,018,822 - Interest payable - 4,058,031 4,058,031 - Bonds payable, net - 12,208,525 12,208,525 - Total current liabilities 105,203,849 40,095,263 145,299,112 12,938 - - Noncurrent liabilities: Estimated landfill closure costs - 30,702,564 30,702,564 - Claims payable 9,347,652 - 9,347,652 - Compensated absences 26,771,799 3,293,532 30,065,331 - Unearned revenue 104,703,654 35,250,663 139,954,317 74,690 Notes payable 9,507,000 - 9,507,000 - Total OPEB liability 71,686,089 3,602,240 75,288,329 - Net pension liability 156,953,944 7,073,948 164,027,892 - Bonds payable, net 357,018,326 246,755,783 603,774,109 - Total noncurrent liabilities 735,988,464 326,678,730 1,062,667,194 74,690 Total liabilities 841,192,313 366,773,993 1,207,966,306 87,628 - - DEFERRED INFLOWS OF RESOURCES Pension related 253,272,068 20,316,763 273,588,831 - OPEB related 24,907,329 1,308,153 26,215,482 - Total deferred inflows of resources 278,179,397 21,624,916 299,804,313 - - - NET POSITION Net investment in capital assets 1,152,235,576 582,955,831 1,735,191,407 - Restricted for: Debt service 5,386,508 55,211,036 60,597,544 - Public safety 260,592,534 - 260,592,534 - Physical environment 111,194,120 83,130,796 194,324,916 - Transportation 107,725,078 - 107,725,078 231,335 Economic environment 23,396,182 - 23,396,182 - Human services 22,342,336 - 22,342,336 - Culture and recreation 17,575,229 - 17,575,229 - Court-related 7,756,563 - 7,756,563 - Educational 13,726 - 13,726 - Impact fees 90,209,149 119,444,140 209,653,289 - Renewal and replacement - 4,822,090 4,822,090 - Landfill closure - 38,487,517 38,487,517 - Unrestricted (262,489,906) 234,924,027 (27,565,879) - Total net position 1,535,937,095$ 1,118,975,437$ 2,654,912,532$ 231,335$ - The notes to financial statements are an integral part of this statement. D-2 PASCO COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2021 PROGRAM REVENUES OPERATING CAPITAL CHARGES FOR GRANTS AND GRANTS AND FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS PRIMARY GOVERNMENT Governmental activities: General government 72,961,719$ 112,980,758$ 6,928,430$ -$ Public safety 309,783,245 48,117,831 13,794,973 885,239 Physical environment 40,058,284 50,054,106 223,584 8,263,103 Transportation 98,467,205 27,196,528 15,566,319 5,575,597 Economic environment 51,621,361 - 3,544,643 936,522 Human services 27,362,145 4,563,234 25,434,852 121,448 Culture and recreation 60,605,056 53,249,747 72,776 117,250 Court-related 393,603 12,029,850 6,389,857 - Interest and debt service charges 62,539,528 - - - Total governmental activities 723,792,146 308,192,054 71,955,434 15,899,159 Business-type activities: Water and Wastewater unit 134,605,215 222,656,617 - 31,670,493 Solid waste disposal and resource recovery 37,364,274 64,457,768 - 1,252,374 Total business-type activities 171,969,489 287,114,385 - 32,922,867 - Total primary government 895,761,635$ 595,306,439$ 71,955,434$ 48,822,026$ COMPONENT UNIT: Housing Finance Authority 29,279 - - - Total component units 29,279$ -$ -$ -$ The notes to financial statements are an integral part of this statement. D-3 PASCO COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2021 NET (EXPENSE) REVENUE AND CHANGES IN NET POSITION PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE COMPONENT FUNCTIONS/PROGRAMS ACTIVITIES ACTIVITIES TOTAL UNIT PRIMARY GOVERNMENT Governmental activities: General government 46,947,469$ -$ 46,947,469$ -$ Public safety (246,985,202) - (246,985,202) - Physical environment 18,482,509 - 18,482,509 - Transportation (50,128,761) - (50,128,761) - Economic environment (47,140,196) - (47,140,196) - Human services 2,757,389 - 2,757,389 - Culture and recreation (7,165,283) - (7,165,283) - Court-related 18,026,104 - 18,026,104 - Interest and debt service charges (62,539,528) - (62,539,528) - Total governmental activities (327,745,499) - (327,745,499) - Business-type activities: Water and sewer unit - 119,721,895 119,721,895 - Solid waste disposal and resource recovery - 28,345,868 28,345,868 - Total business-type activities - 148,067,763 148,067,763 - Total primary government (327,745,499)$ 148,067,763$ (179,677,736)$ -$ COMPONENT UNITS: Housing Finance Authority - - - (29,279) Total component units -$ -$ -$ (29,279)$ General revenues and transfers: General revenues: Property taxes 289,826,011 - 289,826,011 - Sales tax 36,530,330 - 36,530,330 - Communications tax 4,076,264 - 4,076,264 - Fuel taxes 21,807,280 - 21,807,280 - Tourist development tax 3,479,805 - 3,479,805 - State shared revenues not restricted to specific programs 69,394,686 - 69,394,686 - Interest earnings 1,441,921 1,262,645 2,704,566 (16) Miscellaneous 23,152,830 1,935,610 25,088,440 79,454 Total general revenues 449,709,127 3,198,255 452,907,382 79,438 Change in net position 121,963,628 151,266,018 273,229,646 50,159 Net position - beginning as restated - Note 19 1,413,973,467 967,709,419 2,381,682,886 181,176 Net position - ending 1,535,937,095$ 1,118,975,437$ 2,654,912,532$ 231,335$ - - - - The notes to financial statements are an integral part of this statement. D-4