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HIGHLANDS COUNTY

HIGHLANDS COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT

FISCAL YEAR ENDED SEPTEMBER 30, 2011

Celebrating the Past

Preparing for the Future

Celebrating the Past, Preparing for the Future The theme for this year’s Annual Financial Report was chosen as a celebration of the past 90 years of Highlands County history. As the County celebrates 90 wonderful years, we reflect on the progress that has been made and look forward to what is yet to come. We hope that you enjoy the pictures that are featured throughout this publica-tion. For some, the pictures may bring back memories of days gone by while for others, they may provide a glimpse into the history of this great County. We see the pictures as a celebration of the past, a reminder of the present, and a vision of what is yet to come!

“The City on the Circle” The picture featured on the cover of this publication is an aerial photo of downtown Sebring taken in the 1950’s. Sebring has been referred to as “The City on the Circle”, in reference to Cir-cle Drive. The Circle is the center of the Sebring Downtown Historic District, which was desig-nated as a U.S. Historic District on March 16, 1990. The Sebring Downtown Historic District en-compasses Circle Drive and Ridgewood Drive from Mango Street to Magnolia Avenue. Above, Circle Drive is featured in a “then and now” photo, providing a glimpse of the Circle in 1915 and 2004. The photo under laid on this page is a picture of the Circle in 1925.

We would like to thank the Sebring Historical Society for allowing use of the historical

pictures that are displayed throughout the publication.

HIGHLANDS COUNTY, FLORIDA

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

YEAR ENDED SEPTEMBER 30, 2011

PREPARED BY THE OFFICE OF ROBERT W. GERMAINE CLERK OF COURTS

TASHA L. MORGAN PATTI W. HOWERTON DIRECTOR OF ACCOUNTING ACOUNTING MANAGER

HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS


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INTRODUCTORY SECTION

Principal Officials 1

Letter of Transmittal 2

Certificate of Achievement for Excellence in Financial Reporting 13

Organizational Chart 14

FINANCIAL SECTION

Independent Auditors’ Report 15

Management’s Discussion and Analysis 17

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Assets 31

Statement of Activities 32

Fund Financial Statements:

Balance Sheet – Governmental Funds 34

Reconciliation of Fund Balances for Governmental Funds to Net Assets of Governmental Activities – Governmental Funds 35

Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 36

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 37

Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 38

Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – County Transportation Trust Fund 39

Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Local Government Infrastructure Surtax Fund 40

Statement of Net Assets – Proprietary Funds 42

Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds 44

Statement of Cash Flows – Proprietary Funds 45

Statement of Fiduciary Net Assets – Agency Funds 47

Notes to the Financial Statements 48

HIGHLANDS COUNTY, FLORIDA TABLE OF CONTENTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

ii

FINANCIAL SECTION (CONTINUED)

Required Supplementary Information

Modified Approach for Infrastructure Assets 94

Postemployment Benefits Other than Pension 95

Combining and Individual Fund Statements and Schedules

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund 96

Nonmajor Governmental Funds Descriptions 99

Combining Balance Sheet – Nonmajor Governmental Funds 105

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 119

Budgetary Comparison Schedules:

Lake Placid Sun-N-Lake Estates Fire District Fund 133

DeSoto City Special Benefit Fire District Fund 134

Orange Villa Special Benefit District Fund 135

Hickory Hills Special Benefit District Fund 136

Placid Lakes Special Benefit District Fund 137

Sebring Country Estates Special Benefit District Fund 138

Istokpoga Marsh Watershed Improvement District Fund 139

Avon Park Estates Special Benefit District Fund 140

Highlands Lakes Special Tax District Fund 141

Highlands Park Special Benefit Fire District Fund 142

Highlands Park Estates Improvement Trust Fund 143

Leisure Lakes Special Benefit Fire District Fund 144

Sebring Hills Special Benefit District Fund 145

Red Hill Farms Improvement District Fund 146

E911 Emergency Operations Fund 147

Orange Blossom Estates Special Benefit District Fund 148

Sun-N-Lake Lake Placid Recreation District Fund 149

Conservation Trust Fund 150

Intergovernmental Radio Communications Fund 151

Sebring Acres Special Benefit District Fund 152

Orange Blossom (Unit 12) Special Benefit District Fund 153

Lake Haven Estates Special Benefit District Fund 154


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Combining and Individual Fund Statements and Schedules (Continued)

Budgetary Comparison Schedules (Continued):

Legal Aid Program Fund 155

Lorida Special Benefit Fire District Fund 156

Lake Placid Special Benefit Fire District Fund 157

Law Enforcement Education Fund 158

Building Code Enforcement 159

Florida Boating Improvement Fund 160

Special Law Enforcement Trust Fund 161

Highway Park Special Benefit District Fund 162

Community Development Block Grant Fund 163

Affordable Housing Assistance Trust Fund 164

Sun n Lake 1-20 Improvement Trust 165

Highlands Park Estates Special Benefit District Fund 166

Development Transportation Improvement Fund 167

West Sebring Special Benefit Fire District Fund 168

Driver Education Safety Trust Fund 169

Tourist Development Trust Fund 170

Domestic Violence Training Fund 171

Fire Inspection and Safety Fund 172

Venus Special Benefit Fire District Fund 173

Sebring Parkway Maintenance Fund 174

State Court Facilities Trust Fund 175

Innovations and Supplemental Courts Funding Trust Fund 176

Crime Prevention Fund 177

Court Tech 28.24(12)(E)1 Fund 178

Hurricane Housing Trust Fund 179

Home Initiatives Partnership Fund 180

Placid Lakes Fire District Fund 181

Court Services Fund (120) 182

Court Services Fund (121) 183


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Combining and Individual Fund Statements and Schedules (Continued)

Budgetary Comparison Schedules (Continued):

Affordable and Workforce Trust 184

Impact Fee – Transportation – Avon Park 185

Impact Fee – Transportation – Lake Placid 186

Impact Fee – Transportation – Sebring 187

Impact Fee – Parks and Recreation – Avon Park 188

Impact Fee – Parks and Recreation – Lake Placid 189

Impact Fee – Parks and Recreation – Sebring 190

Impact Fee – Correctional Facilities 191

Impact Fee – Fire 192

Impact Fee – Libraries 193

Impact Fee – Law Enforcement 194

Impact Fee – Emergency Medical Services 195

Thunderbird Hill Waste Water 196

HCISSRB Construction 197

Nonmajor Enterprise Funds Descriptions 198

Combining Statement of Net Assets – Nonmajor Enterprise Funds 199

Combining Statement of Revenues, Expenses and Changes in Fund Net Assets – Nonmajor Enterprise Funds 200

Combining Statement of Cash Flows – Nonmajor Enterprise Funds 201

Internal Service Funds Descriptions 203

Combining Statement of Net Assets – Internal Service Funds 204

Combining Statement of Revenues, Expenses and Changes in Net Assets – Internal Service Funds 205

Combining Statement of Cash Flows – Internal Service Funds 206

Trust and Agency Funds Descriptions 208

Combining Statement of Fiduciary Net Assets – Agency Funds 210

Schedule of Changes in Assets and Liabilities – Agency Funds 212


v

STATISTICAL SECTION

Statistical Section 217

Net Assets by Components 218

Changes in Net Assets 219

Fund Balances, Governmental Funds 223

Change in Fund Balances, Governmental Funds 224

Taxable Value and Actual Value of Property 226

Direct and Overlapping Property Tax Rates 227

Principal Property Tax Payers 228

Property Tax Levies and Collections 229

Ratios of Outstanding Debt by Type 230

Ratios of General Bonded Debt Outstanding 232

Overlapping Governmental Activities Debt 233

Pledged-Revenue Coverage 234

Demographic and Economic Statistics 235

Principal Employers 236

Full-time Equivalent County Government Employees by Function 237

Operating Indicators by Function 238

Capital Assets Statistics by Function 240

COMPLIANCE SECTION

Schedule of Expenditures of Federal Awards and State Financial Assistance 241

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 244

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 245

Independent Auditors’ Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Federal Program and State Project and on Internal Control Over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General 247

Schedule of Findings and Questioned Costs – Federal Programs and State Projects 249

Summary Schedule of Prior Audit Findings 252

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Highlands County Courthouse

1931 Courthouse Staff

Sebring Public Library The Sebring Library serves as the ad-ministrative headquarters of the High-lands County Library System. Pictured above, the Sebring Library in 1969. Pictured to the right, the Sebring Li-brary at its current location.

HIGHLANDS COUNTY, FLORIDA PRINCIPAL OFFICIALS


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BOARD OF COUNTY COMMISSIONERS Barbara Stewart, Chairperson

(District 1)

Don Elwell (District 2)

Vacant (District 3)

Jack Richie (District 4)

R. Greg Harris (District 5)

COUNTY ADMINISTRATOR

Rick Helms

CLERK OF COURTS and

CHIEF FINANCIAL OFFICER Robert W. Germaine

TAX COLLECTOR

Eric T. Zwayer PROPERTY APPRAISER

C. Raymond McIntyre

SHERIFF Susan Benton

SUPERVISOR OF ELECTIONS Joe Campbell

COUNTY ATTORNEY

J. Ross MacBeth

SENIOR DIRECTOR

BUSINESS SERVICES Jerome Kaszubowski

DIRECTOR OF ACCOUNTING Tasha L. Morgan

ACCOUNTING MANAGER Patti W. Howerton

INDEPENDENT AUDITORS CliftonLarsonAllen LLP

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March 7, 2012 To the Citizens of Highlands County, Florida: I am pleased to present to you, the citizens of Highlands County, the Comprehensive Annual Financial Report (CAFR) of Highlands County, Florida (County), for the fiscal year ended September 30, 2011. This report was prepared in accordance with generally accepted accounting principles by the Clerk of Courts’ Accounting Division. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the Clerk of Courts as Chief Financial Officer of Highlands County. We believe the data, as presented, is accurate in all material respects and is presented in a manner designed to fairly set forth the financial position and results of operations of the County, as measured by the financial activity of its various funds. In addition, all disclosures necessary to enable the reader to gain a thorough understanding of the County’s financial affairs have been included.

REPORT FORMAT

This report (and particularly this transmittal letter) is intended to provide informative and relevant financial information for the citizens of the County, Board Members, investors, creditors and other concerned readers. In accordance with generally accepted accounting principles (GAAP), this CAFR includes a narrative introduction from management, in the form of Management’s Discussion and Analysis (MD&A), which provides an overview and analysis to accompany the basic financial statements. This letter of transmittal is designed to complement MD&A, and should be read in conjunction with it. The County’s MD&A can be found immediately following the report of the independent auditors. The remainder of this letter provides an overview of the local economy and a report on some of the County’s current and future initiatives.

ROBERT W. GERMAINE CLERK OF COURTS – HIGHLANDS COUNTY, FLORIDA OFFICE LOCATION: 430 SOUTH COMMERCE AVENUE THE COURTHOUSE PLEASE REPLY TO:

CLERK OF CIRCUIT COURT CLERK OF COUNTY COURT COUNTY AUDITOR COUNTY RECORDER CLERK TO THE BOARD OF COUNTY COMMISSIONERS

590 SOUTH COMMERCE AVENUE SEBRING, FLORIDA 33870-3867

PHONE (863) 402-6564 SUNCOM 742-6564 FAX (863) 402-6768

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REPORT FORMAT (CONTINUED)

The accompanying report consists of five parts:

1) Management’s Discussion and Analysis, which is a narrative report providing significant information

about the County and how the County’s financial position has changed from September 30, 2010 to September 30, 2011 and the reason for the change;

2) Government-wide financial statements, which report on the government and business-type assets, liabilities, revenues, and expenditures or expenses, as appropriate;

3) Fund financial statements, which report on the major funds and non major funds in the aggregate;

4) Budgetary comparisons for the County’s general fund and major special revenue funds; and

5) Notes to the financial statements.

County Profile

Highlands County is a non-charter county established under the Constitution and laws of the State of Florida. Established on April 23, 1921 from a segment of Desoto County, Highlands County is Florida’s 56th county. The County is located in the south central part of Florida and is within close proximity to all major attractions and ports. Over 85% of the state’s population is within a 150 mile radius of the County. The County encompasses 1,029 square miles of the state’s heartland and 78 square miles of water. The resident population served is approximately 99,215, which includes the unincorporated County and three municipalities - the cities of Avon Park, Sebring and Lake Placid. The County operates under a commission form of government. The citizens of the County elect a five member Board of County Commission to serve as the legislative body for the County. The County Commissioners appoint a County Administrator who is responsible for the operation of all County departments. The citizens of the county also elect a Clerk of Courts, Property Appraiser, Tax Collector, Sheriff, and Supervisor of Elections. The Board of County Commissioners, as the legislative body, budgets and provides the funding used by the County departments and the separate Constitutional Officers, with the exception of fees collected by the Clerk of Courts, Property Appraiser and Tax Collector. Under the direction of the Clerk of Courts, the Clerk’s Business Services Divisions maintain the accounting system for the Board of County Commissioners’ operations. The Clerk of Courts, Property Appraiser, Tax Collector, Sheriff, and Supervisor of Elections each maintain a separate accounting system; however, the operations of each agency have been combined for presentation in this report. This CAFR is a countywide report, which discloses the combined results of operations for the Board of County Commissioners, Clerk of Courts, Property Appraiser, Tax Collector, Sheriff, Supervisor of Elections, and all component units. This report includes all funds and account groups of governmental operations where the Board of County Commissioners is financially accountable, the exclusion of which would render the financial statements misleading or incomplete. The County provides a full range of services and this report includes all activities of the County.

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County Profile (Continued)

The Highlands County District School Board, the Highlands County Hospital District, the South Florida Water Management District, and the Southwest Florida Water Management District have not met the established criteria for inclusion in the reporting entity and, accordingly, are excluded from this report. The Industrial Development Authority is included as a discretely presented component unit.

Economic Condition Citrus, cattle and dairy operations provide the primary source of economic activity within the County. During the 2010-2011 crop year, Highlands County ranked second in the State for citrus production, with an estimated 23 million boxes of citrus produced in the County. The cattle industry accounts for the greatest land use, estimated at 60%. According to the Florida Department of Agriculture, there are over 72,000 head of beef cattle and 121,000 total cattle grazing annually on over 425,000 acres. Tourism also plays a vital role in the local economy. Highlands County is known for the annual 12 Hours of Sebring endurance race, North America’s longest running and most prestigious road race. The race is held annually at the Sebring International Raceway. Located adjacent to the Sebring Regional Airport and Commerce Park and nestled among orange groves and cattle ranches, it is the oldest permanent road racing track in North America, evolving from a World War II air base. The first 12-hour race was held on March 15, 1952 with approximately 7,000 spectators in attendance. The admission price was $2. The 2011 race marked the 59th running of the 12-hour race, with an estimated 160,000 spectators on hand for the event. Highlands County has experienced a slowdown it its economic environment, reflective of the economic conditions seen throughout the State and Country. We believe that the County’s conservative approach has assisted in minimizing the local impact of the economic downturn. The County’s population continues to trend downward, from a high of 100,207 in 2008. The County’s unemployment rate is 12.6%, down from 13.2% in 2010. These rates are slightly higher than the Florida and national averages.

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Major Initiatives

During the 2010-2011 fiscal year the following was expended for assets and infrastructure projects:

Description Amount Ambulance $ 80,220 Animal Control Improvements 1,900 City of Avon Park Recreation Facilities 117,390 Communications Towers 18,173 EDP Equipment 244,303 Improvements to Roads and Streets 1,493,755 Jail Renovations 995,368 Kenilworth Building 8,789 Lake Charlotte Canal Crossing 31,609 Land Projects 251,216 Landscaping in Lake Placid 123,907 Max Long Complex Renovations to Multi-Use Field 24,625 Memorial Dr. & College Dr. Multi-Use Path 12,819 Public Defender's Building 565,671 Radio Equipment 26,200 Road and Bridge Equipment 381,750 Shell Pit Mitigation 54,996 Sun 'n Lakes of Sebring Playground Equipment 13,221 Toni Dr. Mining Permit 34,996 Town of Lake Placid Miracle League Baseball Field 60,000 Traffic Operations Equipment 77,826 Vehicles 208,524 Waterway Signage 33,297 Total $ 4,860,555

The major initiatives have been funded through a one-cent local option sales surtax for the purpose of financing, planning, and constructing infrastructure. The surtax was approved on August 22, 1989, and on July 20, 1999, the electorate of Highlands County approved extending this tax an additional fifteen years.

Major Accomplishments for 2010-2011

Public Defender’s Building – Construction of a 5,000 square foot building and relocation of the Public

Defender’s Office was complete. The new building provides offices for eight lawyers and four support staff, a small law library, a deposition room and a conference room. The project was completed under budget.

Sheriff’s Office Renovations – HVAC, electrical and dispatch renovations were essentially complete. Construction began in January 2010. The new Consolidated Dispatch Center features seven 911 lines, rollover capabilities to Hardee county, a computer-aided dispatch system, Federal Crime Information Center and National Crime Information Center communications and several other capabilities.

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Major Accomplishments for 2010-2011 (Continued)

Sparrow Avenue Improvements – An additional lane was constructed on Sparrow Avenue from Limpkin Street to U.S. Highway 27, providing dual left-turn lanes from Sparrow Avenue onto U.S. Highway 27. This project included construction of concrete traffic separator, concrete curbs and gutters, drainage improvements, resurfacing and right-of-way restoration.

U.S. Highway 27 Landscaping Project, Lake Placid - Landscaping along U.S. Highway 27 in Lake Placid was complete.

Shell Pit Mitigation – Reconstruction of the 17 acre shell pit mitigation area began in February 2011. The entire 17 acre mitigation area was lowered, as much as 2 feet. Approximately 40,000 cubic yards of material was excavated and removed out of the mitigation area. After completing the excavation, approximately two acres of approved wetland plant species were installed. This effort was complete in June 2011.

Water Plant Excellence Award – The Placid Utilities water plant was awarded the Water Plant Excellence Award for small water systems by the Florida Department of Environmental Protection (FDEP) for the south district. The award was presented to staff on December 7, 2010.

Major Projects Scheduled for the Future

Sheriff’s Office Law Enforcement Facility – Discussion continues regarding the construction or renovations of an existing facility for the Sheriff’s Office. The Sheriff’s Office continues to lease a building to house a portion of the Department, providing time for the Board to approve a permanent solution.

Waterway Marker Replacement – Replacement of all Idle Speed / No Wake and Resume Normal Safe Operation signage located in County lakes and canals to Florida Fish and Wildlife Commission (FWC) standards. Commencement of the project began in September 2011.

Highlands Ethanol SR70 Improvements - Highlands County was awarded a grant on behalf of Highlands Ethanol LLC, to design and construct acceleration and deceleration lanes along State Road 70, turn lane and intersection improvements, and signal light improvements at the intersection of County Road 721 and State Road 70. Upon request, the Governor’s Office of Tourism, Trade and Economic Development (OTTED) will reimburse the County 100% of the cost associated with the project, up to $1,640,000.00. The project is in the permitting phase.

Hammock Road and Lakewood Road Intersection Improvements - The improvements will consist of constructing both the eastbound right-turn lane and westbound left-turn lane from Hammock Road onto Lakewood Road, widening of approximately 1,100 feet of Hammock Road and approximately 500 feet of Lakewood Road. This project will include construction of concrete curb and gutter, certain drainage improvements and resurfacing.

Sebring Parkway Phase III Project - The Sebring Parkway Phase III project will involve the construction of a new two-lane facility on the north and northwest sides of the City of Sebring. The improvement will begin at the intersection of Sebring Parkway Phase I and continue northwest ending at CR 17 A (Memorial Drive) directly across from College Drive, a distance of approximately 4.1 miles. The proposed construction of the Sebring Parkway is required to meet future traffic demands, safety needs, and to improve emergency access. The improvement will include the design and construction of an 8 foot wide multi-use path on the west side of the Sebring Parkway Phase III and approximately three traffic signals at Memorial Drive, Scenic Highway and Sebring Parkway Phase I.

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Financial Information

Readers of this report are encouraged to read the MD&A, which provides basic financial information about the County and an overview of the County’s activities. The government-wide financial statements, consisting of a statement of net assets and a statement of activities, provides a comprehensive financial picture of the County, split between governmental activities and business-type activities. These statements are prepared using the economic resources measurement focus and the accrual basis of accounting, where all assets, liabilities, revenues, and expenses of the County are reported. The fund financial statements provide information concerning the County’s funds and are prepared from the County’s accounting records. The County’s accounting records for general governmental operations are maintained on a modified accrual basis, with revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the County’s proprietary funds are maintained on the accrual basis. The County operates on a fiscal year of October 1st to September 30th. The Clerk of Courts, through the Clerk’s Business Services Division, and County Management is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of 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 County’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgeting Controls. Formal budgetary integration is employed as a management control device for the General, Special Revenue, and Capital Project Funds. Budgets for these funds are legally adopted on an annual basis consistent with generally accepted accounting principles (GAAP). The level of budgetary control exists with the Board of County Commissioners, and the Board follows the laws of Florida regarding the control, adoption, and amendment of the budget during each fiscal year. Open encumbrances are reported as assigned fund balance at year-end and reappropriated the following year. Unencumbered appropriations lapse at fiscal year-end. Relevant Financial Policies. The fiscal year 2010-2011 budget was adopted with a millage rate of 7.10, which was consistent with the millage rate for fiscal year 2009-2010 and approximately 1.2349 mils less than the allowable rollback rate. Staggering economic conditions and budget reductions were managed by a consolidation of services and a prioritization of spending. Services utilized by the public were reduced as little as possible and reductions in work force were countered with efforts targeted toward realizing efficiencies.

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General Government Functions and General Fund Balance. General government functions are reflected in the General, Special Revenue, and Capital Project Funds. The composition of general governmental revenues for the current year was as follows:

Revenues for general functions totaled $80,805,536 in 2011, a decrease of 16.1% from 2010. The decrease was primarily reflected in the Intergovernmental functions and was contributed to grant funding that was received in fiscal year 2010 from the South Florida Water Management District. The composition of general governmental expenditures for the current year was as follows:

Expenditures for general government purposes totaled $86,368,341 in 2011, an decrease of 12.3% from 2010.

General Government

18.0%

Public Safety38.5%

Court Related2.1%

Transportation14.0%

Other27.4%

General Governmental Expenditures by Function

Taxes58.7%

Intergovernmental23.7%

Charges for Services

9.1%

Assessments2.6%

Other5.9%

General Governmental Revenues by Function

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General Government Functions and General Fund Balance (Continued) The following graphs illustrate a ten-year history for revenues and expenditures:

General Governmental Revenue by Source

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General Governmental Expenditures by Function

The unassigned fund balance of the general fund totaled $19,725,387 as of September 30, 2011, a decrease from prior year of 11.5%. The fund balance is used to provide the cash necessary to pay operating expenditures at the beginning of the fiscal year until ad valorem tax revenues become available. Proprietary Fund Type Operations. Proprietary funds are used to account for activities similar to those found in the private sector where the determination of net income is necessary for sound financial administration. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds). The County maintains four (4) Enterprise Funds: Solid Waste, Water and Sewer, Highway Park Utility, and Energy Recovery. Solid Waste revenue is derived from non-ad valorem assessments, recycling, tipping fees, grants, and interest that fund the capital and operating costs of the landfill and recycling center. Water and Sewer, and Highway Park Utilities’ revenues come from residential and commercial service fees and interest. The primary use of funds is for expansion of water and sewer lines and operating expenses. Revenue of the Energy Recovery fund is derived from the sale of asphalt to pave and maintain the county’s road system. The revenue is used to fund the operating and capital costs of the Asphalt Plant.

The County maintains Internal Service Funds for liability coverage (property, general liability, public officials and employment practices liability, automobile, crimes and worker’s compensation liability); dental self-insurance; and compensated absences.

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Fiduciary Fund Type Operations. The County maintains Agency Funds to account for assets held in a trustee capacity or as an agent for individuals, private organization, or other governments.

Payroll deductions, tax deed surplus, child support, suspense collections, cash bonds, individual depositors, unclaimed evidence, inmate funds, tax redemptions, vehicle registrations and title transfers, taxes and licenses, Hospital District pass thru and Board escrows are accounted for as Agency Funds. Debt Administration. On October 6, 2010 the County secured an $11,890,000 Infrastructure Sales Surtax Refunding Revenue Note. The proceeds of the 2010 Revenue Note were used to refund the Series 2002 Infrastructure Sales Surtax Revenue Bonds, dated June 13, 2002. The 2010 Revenue Note bears interest at a fixed rate of 2.48% and matures on November 1, 2019. As a result of the refinancing, all of the refunded 2002 Bonds were legally defeased and therefore, no longer represent obligations of the County. The advance refunding and refinancing of the debt resulted in an economic gain of $1,383,543. Single Audit. The County is a recipient of federal and state financial assistance, making it mandatory that proper internal controls are in place to ensure that compliance with applicable laws and regulations related to those programs are met. This internal control structure is audited each year by our independent auditors.

Other Information County Road System. In order to fund new road construction, resurfacing, safety projects and improvements, purchases of rights-of-way, bridge replacements, traffic signals, and establish, operate, and maintain a transportation system and related facilities, the County receives a portion of the State of Florida’s gasoline taxes, as well as County local option gas taxes. In turn, the County distributes a portion of the sixth-cent local option gas tax to each municipality in the County pursuant to an Interlocal Agreement. The total gasoline tax revenue received by the County amounted to $7,245,874 for the fiscal year ended September 30, 2011, from the taxes shown below:

HIGHLANDS COUNTY, FLORIDA ORGANIZATIONAL CHART


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Kenilworth Lodge The Kenilworth Lodge was built in 1916 by George Se-bring. Designed in the Mediterranean Revival style, the Lodge was considered the grandest resort in the area for its time. The Lodge has hosted a number of celebrities and notable guests over the years, including the 1924 Governor’s Conference. The Lodge has remained open for the past 95 years and continues to serve guests today. The Lodge was added to the U.S. National Register of His-toric Places on June 15, 2000.

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Harder Hall Construction on Harder Hall began in 1925 and took three years to complete. Located on Little Lake Jackson, the Hall was designed in the Spanish Colonial Revival style and contained 134 rooms. The hotel was closed in 1986.

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INDEPENDENT AUDITORS’ REPORT Board of County Commissioners Highlands County, Florida We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Highlands County, Florida (County), as of and for the fiscal year ended September 30, 2011, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the County’s discretely presented component unit. Those financial statements were audited by other auditors whose reports thereon have been furnished to us. Our opinion, insofar as it relates to data included for the discretely presented component unit, is based solely on the reports of the other auditors. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit, and the reports of the other auditors, provides a reasonable basis for our opinions. In our opinion, based on our audit and the reports of the other auditors, 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 discretely presented component unit, each major fund, and the aggregate remaining fund information of Highlands County, Florida, at September 30, 2011 and the respective changes in financial position and cash flows, where applicable, thereof and the budgetary comparison for the general fund and major special revenue funds for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1, the County has adopted the provisions of Government Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, for the year ended September 30, 2011. In accordance with Governmental Auditing Standards, we have also issued a report dated March 7, 2012, on our consideration of the County's internal control over financial reporting and our tests of its compliance with laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

Board of County Commissioners Highlands County, Florida

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Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 17 through 30, information on infrastructure using the modified approach on page 94 and information on other postemployment benefits on page 95 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 inquires 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the financial statements. The schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General, and is also not a required part of the financial statements. The combining and individual nonmajor fund financial statements and schedules and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statement that collectively comprise the County’s basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has 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 it.

CliftonLarsonAllen LLP

Sebring, Florida March 7, 2012

HIGHLANDS COUNTY, FLORIDA MANAGEMENT’S DICUSSION AND ANALYSIS

SEPTEMBER 30, 2011

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The management of Highlands County (County) offers this narrative overview and analysis of the financial activities of the County for the fiscal year ended September 30, 2011. We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in our Letter of Transmittal.

FINANCIAL HIGHLIGHTS The following are key financial highlights for the fiscal year: The County’s assets exceeded its liabilities at September 30, 2011 by $260.9 million (net

assets). Of this amount, $198.0 million was invested in capital assets, net of related debt, and $45,215 was restricted by law, grant agreements, debt covenants, or for capital projects. As a result, $62.9 million (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors.

The County’s total net assets decreased by ($0.65) million, of which ($1.21) million was a decrease from governmental funds and $0.56 million was an increase from business-type activities.

As of September 30, 2011, the County General Fund’s fund balance was $21.4 million which represents a decrease of ($2.4) million or 10% less than the previous year. The County’s governmental funds, in total, reported combined ending fund balances of $60.4 million, a decrease of $5.7 million from the prior year. Of this amount, $19.5 million is available for use at the County's discretion (unassigned fund balance).

At September 30, 2011, the unassigned fund balance for the General Fund was $19.7 million or 34% of total general fund expenditures.

The County’s total liabilities decreased by $5.4 million or 12% during the fiscal year.

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the County's basic financial statements. The County's basic financial statements comprise three components: government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances using the accrual basis of accounting in a manner similar to a private-sector business. The statement of net assets presents information on all the County's assets and liabilities with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The statement of activities presents information showing how the County’s net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods.


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Government-Wide Financial Statements (Continued)

The government-wide financial statements distinguish functions of the County (known as the primary government) that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to 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, and culture and recreation. The business-type activities of the County include water, wastewater, energy recovery, and solid waste. The government-wide financial statements include not only the County itself, but also legally separate entities for which the County is financially accountable (known as component units) such as the Industrial Development Authority. Financial information for these component units is reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on pages 31-33 of this report. Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the County can be divided into three categories: governmental, proprietary and fiduciary funds. Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Highlands County maintains 75 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the County Transportation Trust Fund, and the Local Government Infrastructure Surtax Fund which are considered to be major funds. Data from the other 72 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund and other major special revenue funds to demonstrate compliance with these budgets.


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Proprietary Funds - The County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses enterprise funds to account for its water, wastewater, solid waste, and energy recovery operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the County's various functions. The County uses internal service funds to account for its dental insurance and risk retention operations. Because these services benefit governmental and business-type functions, they have been allocated to the governmental activities and business-type 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 provide separate information for the proprietary operations, two of which are considered to be major funds of the County. Data from the other two enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major enterprise funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Financial Statements - The notes provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. Other Information - The combining statements referred to earlier in connection with non-major governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information (RSI).


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GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $260.9 million as of September 30, 2011.

2010 2011 2010 2011 2010 2011Current and Other Assets 81,836,007$ 74,597,581$ 9,000,845$ 9,758,722$ 90,836,852$ 84,356,303$ Capital Assets 198,437,237 199,692,532 15,931,275 15,065,497 214,368,512 214,758,029

Total Assets 280,273,244 274,290,113 24,932,120 24,824,219 305,205,364 299,114,332

Long-Term Debt Outstanding 26,860,913 23,269,068 9,417,068 8,836,149 36,277,981 32,105,217 Other Liabilities 6,632,557 5,452,311 726,272 643,567 7,358,829 6,095,878

Total Liabilities 33,493,470 28,721,379 10,143,340 9,479,716 43,636,810 38,201,095

Net Assets:Invested in Capital Assets Net of Related Debt 180,707,464 185,194,317 12,884,172 12,797,355 193,591,636 197,991,672 Restricted 4,902,857 2,456 42,752 42,759 4,945,609 45,215 Unrestricted 61,169,453 60,371,961 1,861,856 2,504,389 63,031,309 62,876,350

Total Net Assets 246,779,774$ 245,568,734$ 14,788,780$ 15,344,503$ 261,568,554$ 260,913,237$

Highlands County's Net Assets

Governmental Activities Business-Type Activities Total

The largest portion of the County’s net assets reflects investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets still outstanding. These capital assets are used to provide services to citizens; consequently, these assets are not available for future spending. It should also be noted that the resources required to repay the related debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the County’s net assets represents resources that are subject to external restrictions such as by debt covenants, grantors, laws or regulations, or are subject to restrictions through enabling legislation on how they may be used. The remaining balance of unrestricted net assets may be used to meet the County's ongoing obligations to citizens and creditors. As such, unrestricted net assets are net assets remaining after removing “net assets invested in capital assets, net of related debt” and “restricted assets” from total net assets. Therefore, the change in the unrestricted net assets of governmental activities from $61.2 million at September 30, 2010 to $60.4 million at September 31, 2011 was due to the net effect of the change in overall net assets from the prior year as adjusted by changes in “net assets invested in capital assets, net of related debt” and “restricted net assets.” Significant changes from the prior year that are responsible for the $0.8 million decrease in unrestricted net assets of governmental activities are described later in the analysis. As of September 30, 2011, the County reports positive balances in all three categories of net assets, both for the government as a whole as well as for its separate governmental and business-type activities.


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2010 2011 2010 2011 2010 2011Revenues: Program Revenues: Charges for Services 15,011,224$ 14,982,072$ 11,632,475$ 11,370,004$ 26,643,699$ 26,352,076$ Operating Grants

and Contributions 4,844,910 3,793,275 4,301 88,974 4,849,211 3,882,249 Capital Grants

and Contributions 9,122,642 593,277 - - 9,122,642 593,277 General Revenues: Property Taxes 39,721,800 34,215,713 - - 39,721,800 34,215,713 Other Taxes 12,725,809 13,237,288 - - 12,725,809 13,237,288 Other 14,625,315 13,704,344 22,784 (31,142) 14,648,099 13,673,202

Total Revenues 96,051,700 80,525,969 11,659,560 11,427,836 107,711,260 91,953,805

Expenses: General Government 15,153,253 18,086,207 - - 15,153,253 18,086,207 Public Safety 39,105,729 37,834,107 - - 39,105,729 37,834,107 Physical Environment 1,642,807 1,839,208 - - 1,642,807 1,839,208 Transportation 11,561,212 12,263,525 - - 11,561,212 12,263,525 Economic Environment 3,461,633 2,908,356 - - 3,461,633 2,908,356 Human Services 2,766,189 2,939,280 - - 2,766,189 2,939,280 Culture and Recreation 3,540,024 3,289,267 - - 3,540,024 3,289,267 Court Related 2,275,428 2,133,649 - - 2,275,428 2,133,649 Interest on Long-Term Debt 854,292 443,410 - - 854,292 443,410 Solid Waste - - 8,741,009 8,226,418 8,741,009 8,226,418 Energy Recovery - - 2,100,444 2,005,691 2,100,444 2,005,691 Highway Park Utility - - 140,377 140,108 140,377 140,108 Water and Sewer - - 614,668 499,896 614,668 499,896

Total Expenses 80,360,567 81,737,009 11,596,498 10,872,113 91,957,065 92,609,122

Change in Net Assets - Before Transfers 15,691,133 (1,211,040) 63,062 555,723 15,754,195 (655,317) Transfers 423,028 - (423,028) - - - Change in Net Assets 16,114,161 (1,211,040) (359,966) 555,723 15,754,195 (655,317)

Net Assets - Beginning 230,665,613 246,779,774 15,148,746 14,788,780 245,814,359 261,568,554 Net Assets - Ending 246,779,774$ 245,568,734$ 14,788,780$ 15,344,503$ 261,568,554$ 260,913,237$

Highlands County's Changes in Net Assets

Governmental Activities TotalBusiness-Type Activities

Governmental Activities

Governmental activities decreased the County’s net assets by $1.21 million while Business-Type Activities were responsible for a $0.56 million increase. Key elements of the governmental activities decrease are as follows: Charges for Services revenue decreased $29,152 overall for the County from the fiscal year

ending 2010 to 2011. The State changed the receipt of some court charges to be remitted to the State instead of to the County. The County has seen decreases in some court related fees, permits and inspections, rental fees for buildings and parks, and the continued suspension of impact fees.

Operating Grants and Contributions decreased $1,051,635. The County received $1.4 million less in funding for mitigation projects and hurricane damage reimbursements in FY 10/11. The County did not apply for funding of mitigation projects. In addition, the Law Enforcement Block Grant and the FDLE Grants decreased in FY 10/11. Funding did increase for Conservation projects in excess of $500,000 in FY 10/11.


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Governmental Activities (Continued)

Capital Grants and Contributions decreased $8.53 million. The decrease is due mostly to the prior year restoration project funding for Lake Istokpoga. In addition, the State has delayed, reduced or cut some grant funding because of State’s budget reductions.

Property tax revenues decreased $5.51 million or 13.9%. This is a result of the decrease in property values due to the economic issues and continued depressed housing market. Highlands County had 601 foreclosures in FY 2011. The State Legislature increased the exemption on property tax in 2008 and put statutory limitations on Ad Valorem tax rates.

Sales tax revenues increased by 2.0% or $141,410 due to the economy starting to stabilize. Fuel tax revenues increased from prior fiscal year by 9.9% or $431,991 as fuel prices continue to fluctuate with the uncertainty of economy even as fuel consumption increases.

State Revenue Sharing revenues increased by $0.30 million due to additional funding received from the State because of additional funding set aside because of property tax reform. The State continues to have its own revenue problems due to the downturn in the economy. There was also a decrease of 5.5% in the Tourism Tax revenue as people continue to travel less.

Investment earnings decreased by $815,334 overall due to changing of investment mix and short term investments earnings continue to decline due to a near zero rate of return.

General government expenses increased by $2.93 million due to the change in capital assets and delinquent tax properties. The County recognized software purchases from FY 09/10 and prior years as capital assets in FY 09/10 as part of the changes in asset reporting requirements according to GASB 51. This reduced the County’s expenditures in FY 09/10 by $2 million dollars. The County built a Public Defenders building and received $100,000 from the County health care provider that was spent on a wellness program as a way of reducing long term health care costs. The County also provided to the Tax Collector $360 thousand on tax deed related costs due to a high number of delinquent tax properties.

Public safety expenses decreased by $1.27 million due to projects for the Agricultural Civic Center and Health Department being completed, reductions to the Sheriff’s and Emergency Medical Services expenditures.

Transportation expenses increased by $0.70 million due to less capital purchases and more funding spent on maintenance and other operational costs.

Economic environment expenses decreased by $0.55 million due to decreases in housing grant expenditures and operational costs for the Housing departments. The Community Redevelopment Agencies (CRA) also had decreases in expenses due to continued decline of overall property values.

Human Services expenses increased by $173,091. The increase in expenses was due to the increase in the Medicaid expenditures charged to the County.

Physical environment expenses increased by $196,401 due to projects in the Natural Resources area such as Lake Istakpoga Canal, Lake Placid Watershed Management Master and others.

Court related expenses decreased by $141,779. The State continues to decrease funding for local court related activities.

Interest on long-term debt decreased by $410,882. The County refinanced the 2002 Bonds which also contributed to the decrease in interest on long-term debt.


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Governmental Activities (Continued)

Key elements of the business-type activities decrease are as follows: Charges for Services revenue decreased $262,741 due to the decreased revenue received for

landfill tipping fees, refuse collection fees from the franchise hauler, and the production of asphalt. The utilities experienced a small decrease in the total charges for services for fiscal year ending 2010 to 2011.

Operating Grants and Contributions increased $84,673, primarily due to receiving the Small County Solid Waste Grant.

Capital Grants and Contributions have not been received in the last three years. There has been no change.

Solid Waste decreased expenses $514,589 due to decreases in operating costs and reductions in personnel. The landfill continues to receive less tipping fees but increases in the sale of recyclable materials helped offset a portion of the decrease in operating revenues.

The Asphalt Plant decreased expenses $94,753 due to reduction in start up costs such as mix designs and increased efficiency in the production of asphalt. More landfill gas was also used in the production process which lowered fuel costs.

Water and sewer expenses decreased $114,772 for Placid Utilities and decreased $269 for Highway Park Utilities. Personal services repair & maintenance, and depreciation expenses had the most significant decreases for Placid Utilities. Personal services decreased dramatically but Operating expense increases offset most of that change for Highway Park Utilities. Expenses continue to be cut in an effort to minimize operating income loss for the utilities.

In summary, the County’s governmental activities had expenses of $81.7 million and business-type activities had expenses of $10.9 million. Governmental activities are intended to be primarily funded by taxes as opposed to charges for services and grants; business activities are funded from charges for services. The County experienced a decrease in property tax revenue as a result of the continued decline of the economy. The County’s business-type activities have also seen a decline in revenues due to the economic conditions. Overall the County decreased its net assets for governmental activities by 0.49% and increased net assets 3.8% for business activities.


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FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS As noted earlier, the 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. Such information is useful in assessing the County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of its fiscal year. At September 30, 2011, the County's governmental funds reported combined ending fund balances of $60.4 million. Approximately 32.3% or $19.5 million of the combined fund balances constitutes the unassigned fund balance which is available for spending at the government’s discretion. The remainder of the balance is not available for new spending because it has already been committed: (1) to nonspendable of $0.61 million; (2) to restricted funding of $39.14 million; (3) for assigned funding of $1.1 million. The general fund is the chief operating fund of the County. At September 30, 2011, the unassigned fund balance of the general fund was $19.7 million and the total fund balance was $21.4 million. As a measure of the general fund’s liquidity, the total fund balance represents 37% of total general fund expenditures. The unassigned fund balance decreased in the General Fund by $2.5 million. Of the $2.5 million decreased fund balance, $0.10 million came from a reduction in encumbered funds and the remaining $2.4 million came from the difference between revenues collected and expenditures. As of September 30, 2011, the total fund balance for the Transportation Trust Fund was $6.4 million as compared to $5.4 million as of September 30, 2010. The $1.0 million increase in the total fund balance came from the difference between revenues collected and expenditures. The revenues exceeded projections primarily in the reimbursements for labor for the placement of asphalt. In addition, gas tax revenue was higher than budgeted for the fiscal year. Expenditures for personal services, fuel, asphalt materials and reserves were less than anticipated. As of September 30, 2011, the total fund balance for the Local Government Infrastructure Surtax Fund was $20.5 million as compared to $23.4 million the prior year. The overall decrease in fund balance is due to completion of projects from prior years. Proprietary Funds

The County's proprietary funds provide the same type of information found in the government-wide financial statements but in more detail. Solid Waste operating revenues decreased $166,624 or 2.0% primarily due to the decrease in landfill tipping fee revenue. Unrestricted net assets of the Solid Waste Department were $1.26 million at September 30, 2011, an increase of $303,000 from the prior year. There was also a decrease in operating expenses of 5.7% or $495,000 for Solid Waste.


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Proprietary Funds (Continued)

The Energy Recovery Fund has total net assets of $1.95 million, which is an increase of $295,000. Unrestricted net assets are $272,000. This fund accounts for the operation of the County’s Asphalt Plant and was constructed at the landfill site in order to use methane gas produced by the landfill as an energy source for powering the plant. In addition, the amount of materials that can be recycled from the landfill to be used in the making of asphalt will reduce the price of the asphalt and allow the County to pave additional roads and better maintain the road system due to cost savings in producing asphalt. The change in total net assets and unrestricted net assets is due in part mostly to a decrease in the asphalt production costs with revenues staying relatively the same. The expenditure reduction is a direct result of better efficiency in the production of asphalt process.

BUDGETARY HIGHLIGHTS Budget and actual comparison schedules are provided in the Basic Financial Statements for the General Fund and all major special revenue funds. Budget and actual comparison schedules are also provided in the Combining and Individual Fund Statements and Schedules for all non-major funds with annually appropriated budgets. The budget and actual comparison schedules show the original adopted budgets, the final revised budget, actual results, and variance between the final budget and actual results for the general and major special revenue funds. After the original budget is approved, it may be revised for a variety of reasons such as unforeseen circumstances, new bond or loan proceeds, new grant awards, or other unanticipated revenues.

The variances between the original budget and the final amended budget can be summarized as follows: Revenues and expenditures were increased by $23.8 million or 19.7% increase over the

adopted budget due primarily to an increase in roll-forward encumbrances related to projects and service contracts and additional appropriations for projects funded mostly through grants.

In the General Fund, roll-forward encumbrances included a Habitat Conservation project and designs for new Fire Stations. In the Transportation Fund, roll-forward encumbrances included hauling, rentals and leases, repairs and maintenance and road patching materials. Other major project roll-forwards were the Sebring Parkway Phase II & III, Memorial/College Drive multipath and several lighting projects.

Some of the additional appropriations in the General Fund were for various Law Enforcement grants and programs. Other funds’ additional appropriations were Jail Renovations, West Sebring Fire Station, Leisure Lakes Fire Station, Lake Istokpoga Canal, Supervisor of Elections Building, Public Defender’s Building, ITS Strategic Plan, APAFR Encroachment Prevention and APAFR Noise Study, and the Highlands Ethanol/SR 70 project.


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Differences between the General Fund final amended budget and actual expenditures are briefly summarized as follows:

General Fund Department

Positive Variance Reason for Variance

County Planning & Development

289,043

Appropriations for OTTED projects not spent in the current fiscal year

Facilities Management

435,007

Appropriations for Personnel Services, Utilities, Repairs, and Operating Sup-plies not spent in current fiscal year

Emergency Medical Services

645,074

Appropriations for Personnel Services, Repairs and Operating Supplies not spent in current fiscal year

Local Emergency Management

233,271

Appropriations for Personnel Services and several projects not spent in the current fiscal year

Supervisor of Elections

197,893

Appropriations for Supervisor of Elections not expended in the current fiscal year

Sheriff 458,436

Appropriations for the Sheriff not expended in the current fiscal year

Tax Collector 154,336 Appropriations for the Tax Collector not expended in the current fiscal year

Detention & Corrections

355,313 Appropriations for Detention & Corrections not expended in the current fiscal year

Detention Medical 255,178 Appropriations for Detention Medical not expended in the current fiscal year


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Differences between the other funds final amended budget and actual expenditures are briefly summarized as follows:

Major Fund Department

Positive Variance Reason for Variance

Conservation Trust 435,191 Appropriations for OTTED grant project not spent in the current fiscal year

Affordable & Workforce Trust

431,500 Appropriations for grant project not spent in the current fiscal year

Road & Bridge 891,501 Appropriations for Personnel Services, fuel, and resurfacing supplies not spent in the current fiscal year

Road & Bridge Projects

14,688,342 Various projects that were not completed in the current fiscal year

Central Services - 151

383,555 Appropriations for VOIP project not spent in the current fiscal year

Supervisor of Elections - 151

632,465 Appropriations for building renovation not spent in the current fiscal year

HOME Investment Partnership

911,091 Appropriations not spent in current fiscal year

State Housing Initiative Partnership


Refuse Disposal System


Asphalt Plant 339,650 Appropriations not spent in current fiscal year

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The County's investment in capital assets for its governmental and business-type activities as of September 30, 2011 amounted to $214.8 million (net of accumulated depreciation) compared to $214.4 million for the prior year. This investment in capital assets includes land, buildings, improvements, machinery and equipment, parks, roads, highways, bridges, software, and land use rights. Major capital asset events during the fiscal year included the following:

Partial Completion of Sebring Parkway Phase II Recreation Improvements Istokpoga Marsh Water Shed Land Purchase Public Defender Building Jail Renovations Lake Istokpoga Canal Data Center in a Row (DCR)


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Capital Assets (Continued)

Additional information on the County's capital assets can be found in Note 4 to the financial statements.

2010 2011 2010 2011 2011 2011Land 41,492,646$ 41,861,280$ 1,864,131$ 1,864,131$ 43,356,777$ 43,725,411$ Infrastructure 76,495,826 77,478,723 - - 76,495,826 77,478,723 Land Use Rights 1,508,562 1,582,353 - - 1,508,562 1,582,353 Buildings 32,433,853 33,844,794 351,601 369,524 32,785,454 34,214,318 Improvements 7,664,893 7,277,125 8,592,165 8,213,823 16,257,058 15,490,948 Equipment 15,632,964 15,355,770 5,032,114 4,526,755 20,665,078 19,882,525 Computer Software 1,809,489 1,519,508 - 1,809,489 1,519,508 Construction in Progress 21,399,004 20,772,979 91,264 91,264 21,490,268 20,864,243

Total 198,437,237$ 199,692,532$ 15,931,275$ 15,065,497$ 214,368,512$ 214,758,029$

Activities TotalBusiness-Type Entity

Highlands County's Capital Assets(Net of Depreciation)

ActivitiesGovernmental

Long-Term Debt

At September 30, 2011, the County had total debt outstanding of $16.8 million compared to $22 million in the prior year. Of this amount, all $16.8 million represents loans payable and other obligations. The decrease in total outstanding debt is mostly due to the retirement of the 2002 Bonds as well as the continued pay downs on the other debt instruments and the capital leases.

2010 2011 2010 2011 2010 2011Notes Payable, Revenue Certificates and Capital Leases 3,069,133$ 14,498,215$ 3,047,103$ 2,268,142$ 6,116,236$ 16,766,357$ Revenue Bonds 15,480,000 - - - 15,480,000 -

Total 18,549,133$ 14,498,215$ 3,047,103$ 2,268,142$ 21,596,236$ 16,766,357$

EntityTotal

Highlands County's Outstanding Debt

Business-TypeActivities

GovernmentalActivities

The County continues to meet its financial needs through prudent use of its revenues and creative debt financing programs. The Series 2002 Infrastructure Sales Surtax Bonds were refinanced through a secured Infrastructure Sales Surtax Refunding Revenue Note, Series 2010. As a result of the refinancing, all of the refunded 2002 Bonds were legally redeemed and defeased and no longer represent obligations of the County. This was done to take advantage of lower interest rates and lowering the annual debt service obligations of the County. Please refer to Note 7 of the Notes to Financial Statements for a complete presentation of all long term liabilities. The above table does not present information for compensated absences, other post employment benefits or landfill closure liability. The County’s required Annual Disclosure Statement is available upon request. This disclosure report details and updates certain statistics and financial performance which form the basis for the security of the County’s indebtedness.


SEPTEMBER 30, 2011

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES Local, national and international economic factors influence the County's revenues. The economic recession is correlated with decreased revenues from property taxes, sales taxes, gas taxes, charges for services, as well as state and federal grants. The economic slowdown in the local economy may be measured by a variety of indicators such as unemployment, new construction, assessed valuation, and tax base. For the month of December 2011, the unemployment rate for the County was 10.4% which was

higher than the rate for the State of Florida (9.7%) and higher than the nation (8.3%).

The taxable value of property in Highlands County decreased 5.27% below last year.

Population decrease for last year was 2.05% in the unincorporated area of Highlands County for a total county population of 98,786 residents. All three cities showed population increases over the last year according to the Office of Economic & Demographic Research.

Highlands County has a diversified property tax base. The ten largest property taxpayers in the County still represent only 6.12% of the total ad valorem property tax levy.

All these factors were considered in preparing the County's budget for the 2012 fiscal year. More information on economic factors is provided in the Statistical Section and the transmittal letter. Infrastructure

The County has elected to use the modified approach to account for its bridges and roadways included on the County road and bridge network. Under this approach, the County made the commitment to preserve and maintain these assets at levels established and approved by the Board of County Commissioners. No depreciation expenses are reported for such assets nor are amounts capitalized in connection with improvements that lengthen the life of such assets unless the improvements also increase their service potential. The County maintains an inventory of these assets and performs periodic condition assessments to establish that the predetermined condition level is being maintained. The condition assessments performed during fiscal year 2011-2010 show that the roadway and bridges included on the County road and bridge network are being maintained at or above established County standards. In addition, the County makes annual estimates of the amounts that must be expended to preserve and maintain the roadways and bridges included on the County road and bridge network at the predetermined condition levels. There were no significant differences from the estimated annual amount to preserve and maintain these assets compared with the actual amounts spent during the current period. For further information on the County’s established condition standards, recent condition assessments or other information on infrastructure reported on the modified approach, refer to the RSI section of this report.


SEPTEMBER 30, 2011

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REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County's finances for all those with an interest in the government’s finances. Questions concerning budgets, long-term financial planning, future debt issuances, or questions related to the management of County operations should be addressed to the County Administrator at:

Office of the County Administrator Highlands County Board of County Commissioners 600 S Commerce Ave Sebring, FL 33870

If you have any questions concerning the Basic Financial Statements or other accounting information in this report, please contact the Clerk of Courts at:

Clerk of Courts Business Services Director 590 S Commerce Avenue Sebring, FL 33870

BASIC FINANCIAL STATEMENTS

HIGHLANDS COUNTY, FLORIDA STATEMENTS OF NET ASSETS

SEPTEMBER 30, 2011

See accompanying Notes to Financial Statements.

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ComponentUnit

IndustrialGovernmental Business-Type Development

Activities Activities Total Authority

ASSETSCash and Cash Equivalents 44,092,020$ 8,600,851$ 52,692,871$ 165,300$ Investments 23,670,290 - 23,670,290 - Accounts Receivable - Net 1,026,200 341,615 1,367,815 4,537 Interest Receivable - 960 960 - Internal Balances (472,264) 472,264 - - Due from Other Governmental Units 5,867,645 72,263 5,939,908 4,184

Inventory 362,959 73,100 436,059 - Prepaid 40,731 108 40,839 - Other Assets 10,000 - 10,000 - Restricted Assets:

Cash and Cash Equivalents - 197,561 197,561 - Capital Assets not being Depreciated/Amortized 141,695,335 1,955,395 143,650,730 - Capital Assets - Net of Accumulated Depreciation/Amortization 57,997,197 13,110,102 71,107,299 -

Total Assets 274,290,113 24,824,219 299,114,332 174,021

LIABILITIESVouchers Payable 2,721,354 444,921 3,166,275 2,400 Claims Payable 25,888 - 25,888 - Contracts Payable - Retained Percentage 82,402 - 82,402 - Due to Other Governmental Units 214,286 - 214,286 - Due to Others 82,700 - 82,700 - Accrued Interest Payable 163,022 21,712 184,734 - Accrued Wages Payable 880,855 11,724 892,579 6,780 Deposits 39,534 154,802 194,336 - Unearned Revenue 1,242,270 10,408 1,252,678 - Noncurrent Liabilities:

Due within One Year 1,977,200 809,335 2,786,535 - Due in More than One Year 21,291,868 8,026,814 29,318,682 4,110

Total Liabilities 28,721,379 9,479,716 38,201,095 13,290

NET ASSETSInvested in Capital Assets, Net of Related Debt 185,194,317 12,797,355 197,991,672 - Restricted for:

Debt Service - 42,759 42,759 - Capital Projects 2,456 - 2,456 -

Unrestricted 60,371,961 2,504,389 62,876,350 160,731

Total Net Assets 245,568,734$ 15,344,503$ 260,913,237$ 160,731$

Primary Government

HIGHLANDS COUNTY, FLORIDA STATEMENT OF ACTIVITIES



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Operating CapitalCharges for Grants and Grants and

Functions/Programs Expenses Services Contributions ContributionsPrimary Government:

Governmental Activities:General Government 18,086,207$ 2,815,601$ 250,310$ -$ Public Safety 37,834,107 6,573,661 818,288 25,139 Physical Environment 1,839,208 230,925 950,632 - Transportation 12,263,525 2,001,802 7,466 536,922 Economic Environment 2,908,356 - 1,301,191 - Human Services 2,939,280 89,708 185,995 - Culture and Recreation 3,289,267 231,266 279,393 31,216 Court Related 2,133,649 3,039,109 - - Debt Service:

Interest on Long-Term Debt 443,410 - - - Total Governmental Activities 81,737,009 14,982,072 3,793,275 593,277

Business-Type Activities:Solid Waste 8,226,418 8,375,167 88,974 - Energy Recovery 2,005,691 2,302,421 - - Highway Park Utility 140,108 125,499 - - Water and Sewer 499,896 566,917 - -

Total Business-Type Activities 10,872,113 11,370,004 88,974 -

Total Primary Government 92,609,122$ 26,352,076$ 3,882,249$ 593,277$

Component Unit:Industrial Development Authority 293,389$ 18,600$ 27,947$ -$

General Revenues:Taxes:

Property TaxesFuel TaxesSales TaxServices Taxes

Other TaxesUnrestricted State Shared Revenues Net Change in Fair Value of InvestmentsGain (Loss) on Sale of Capital AssetsMiscellaneous

Payment from Highlands CountyTotal General Revenues and TransfersChange in Net AssetsNet Assets - BeginningNet Assets - Ending

Program Revenues

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ComponentUnit

IndustrialGovernmental Business-Type Development

Activities Activities Total Authority

(15,020,296)$ -$ (15,020,296)$ -$ (30,417,019) - (30,417,019) -

(657,651) - (657,651) - (9,717,335) - (9,717,335) - (1,607,165) - (1,607,165) - (2,663,577) - (2,663,577) - (2,747,392) - (2,747,392) -

905,460 - 905,460 -

(443,410) - (443,410) - (62,368,385) - (62,368,385) -

- 237,723 237,723 - - 296,730 296,730 - - (14,609) (14,609) - - 67,021 67,021 - - 586,865 586,865 -

(62,368,385) 586,865 (61,781,520) -

(246,842)

34,215,713 - 34,215,713 - 4,803,043 - 4,803,043 - 7,280,803 - 7,280,803 -

804,349 - 804,349 - 349,093 - 349,093 -

12,735,009 - 12,735,009 - 370,769 21,099 391,868 - 14,954 (52,241) (37,287) -

583,612 - 583,612 - - - - 266,704

61,157,345 (31,142) 61,126,203 266,704 (1,211,040) 555,723 (655,317) 19,862

246,779,774 14,788,780 261,568,554 140,869 245,568,734$ 15,344,503$ 260,913,237$ 160,731$

Primary Government

Net Revenue (Expense) and Changes in Net Assets

HIGHLANDS COUNTY, FLORIDA BALANCE SHEET

GOVERNMENTAL FUNDS SEPTEMBER 30, 2011


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LocalCounty Government Nonmajor Total

Transportation Infrastructure Governmental GovernmentalGeneral Trust Surtax Funds Funds

ASSETSCash and Cash Equivalents 10,336,900$ 3,653,319$ 10,368,996$ 12,299,633$ 36,658,848$ Investments 11,067,859 2,059,318 9,328,010 1,041,539 23,496,726 Accounts Receivable - Net 986,855 216 17,025 21,755 1,025,851 Due from Other Funds 35,939 - - 116,961 152,900 Due from Other Governmental Units 1,705,977 941,751 3,017,003 202,742 5,867,473 Other Assets 10,000 - 10,000 Advances to Other Funds 203,845 - - - 203,845 Prepaid Items 39,271 368 - 1,092 40,731 Inventory 362,959 - - - 362,959

Total Assets 24,749,605$ 6,654,972$ 22,731,034$ 13,683,722$ 67,819,333$

LIABILITIES AND FUND BALANCESLiabilities:

Vouchers Payable 2,118,222$ 129,228$ 231,063$ 232,468$ 2,710,981$ Contracts Payable-Retained Percentage - - 69,802 12,600 82,402 Customer Deposits 39,534 - - - 39,534 Due to Other Governmental Units 83,682 5,017 117,391 8,196 214,286 Due to Other Funds 146,625 - - 2,691 149,316 Due to Others - - - 82,700 82,700 Advances from Other Funds - - - 203,845 203,845 Accrued Wages Payable 759,074 55,919 - 65,862 880,855 Deferred Revenue 155,230 - 1,800,000 1,087,040 3,042,270

Total Liabilities 3,302,367 190,164 2,218,256 1,695,402 7,406,189

Fund Balances:Nonspendable 606,075 368 - 1,092 607,535 Restricted - 6,464,440 20,512,778 12,166,103 39,143,321 Assigned 1,115,776 - - - 1,115,776 Unassigned 19,725,387 - - (178,875) 19,546,512

Total Fund Balances 21,447,238 6,464,808 20,512,778 11,988,320 60,413,144

Total Liabilities and Fund Balances 24,749,605$ 6,654,972$ 22,731,034$ 13,683,722$ 67,819,333$

HIGHLANDS COUNTY, FLORIDA RECONCILIATION OF FUND BALANCES FOR GOVERNMENTAL

FUNDS TO NET ASSETS OF GOVERNMENTAL ACTIVITIES GOVERNMENTAL FUNDS

SEPTEMBER 30, 2011


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Fund balances - total governmental funds $ 60,413,144

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources, and therefore are not reported in the funds. 199,692,532

Deferred revenue is recorded in the funds to offset receivables that do not meet the criteria for revenue recognition in the current period. 1,800,000

Long-term liabilities, including bonds payable, notes payable, capital leases and other post-employment benefits are not due and payable in the current period, and therefore are not reported in the funds. (18,663,670)

Accrued general long-term debt interest expenses are not financial uses, and therefore are not reported in the funds. (163,022)

The assets and liabilities of the internal service funds, used by management to charge the costs of certain activities to individual funds, are included in governmental activities in the statement of net assets. 2,489,750

Net assets of governmental activities 245,568,734$

HIGHLANDS COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS



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LocalCounty Government Nonmajor Total

Transportation Infrastructure Governmental GovernmentalGeneral Trust Surtax Funds Funds

REVENUESTaxes 34,915,497$ 4,907,608$ 7,280,803$ 289,442$ 47,393,350$ Licenses and Permits 17,690 32,790 - 538,327 588,807 Intergovernmental 12,767,670 2,671,171 331,356 3,414,479 19,184,676 Charges for Services 5,804,315 66,484 - 1,473,763 7,344,562 Fines and Forfeitures 114,898 - - 26,497 141,395 Assessments - - - 2,089,742 2,089,742 Net Change in Fair Value of Investments 170,519 21,742 94,224 63,839 350,324 Miscellaneous 1,398,007 1,536,716 16,571 761,386 3,712,680

Total Revenues 55,188,596 9,236,511 7,722,954 8,657,475 80,805,536

EXPENDITURESCurrent:

General Government 14,765,545 - 817,606 2,123,271 17,706,422 Public Safety 32,615,295 - 1,181,162 4,056,871 37,853,328 Physical Environment 1,699,887 - - 63,323 1,763,210 Transportation 53,632 8,196,259 5,033,337 452,189 13,735,417 Economic Environment 1,303,732 - - 1,572,385 2,876,117 Human Services 2,825,242 - 3,158 - 2,828,400 Culture and Recreation 2,525,424 - 215,236 88,005 2,828,665 Court Related 1,331,000 - - 756,156 2,087,156

Debt Service:Principal Retirement 142,399 - 3,811,733 96,955 4,051,087 Interest and Fiscal Charges 5,897 - 560,697 33,965 600,559 Debt Issuance Costs - - 37,980 - 37,980

Total Expenditures 57,268,053 8,196,259 11,660,909 9,243,120 86,368,341

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,079,457) 1,040,252 (3,937,955) (585,645) (5,562,805)

OTHER FINANCING SOURCES (USES)Transfers In 55,037 - 1,349,826 564,801 1,969,664 Transfers Out (368,557) - (118,224) (1,482,883) (1,969,664) Issuance of Refunding Note - - 11,890,000 - 11,890,000 Payment to Refunded Bond Escrow Agent - - (12,031,932) - (12,031,932)

Total Other Financing Sources (Uses) (313,520) - 1,089,670 (918,082) (141,932)

NET CHANGE IN FUND BALANCES (2,392,977) 1,040,252 (2,848,285) (1,503,727) (5,704,737)

Fund Balances, October 1, 2010 23,840,215 5,424,556 23,361,063 13,492,047 66,117,881

FUND BALANCES, SEPTEMBER 30, 2011 21,447,238$ 6,464,808$ 20,512,778$ 11,988,320$ 60,413,144$

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

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2011


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Net change in fund balances - total governmental funds (5,704,737)$

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statementof activities, the cost of those assets is allocated over their estimated useful livesas depreciation or amortization expense. This is the amount by which net capital outlayexceeded depreciation and amortization in the current period. 1,398,157

In the statement of activities, only the gain on the sale of capital assets is reported. However,in the governmental funds, the proceeds from the sale increase financial resources. Thusthe change in net assets differs from the change in fund balance by the cost of capitalassets sold. (142,862)

Long-term liabilities are reported in the statement of net assets but not in the governmentalfunds because they are not due and payable in the current period. Also, governmental fundsreport the effect of issuance costs, premiums, discounts and similar items when debt is firstissued, whereas these amounts are deferred and amortized in the statement of activities. Thisamount is the net effect of these differences in the treatment of long-term debt and related items. 3,303,088

Some revenues reported in the statement of activities will not be collected for several monthsafter the fiscal year and, therefore, are not reported as revenue in the governmental funds. (300,000)

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and, therefore, are not reported as expenditures in governmentalfunds. 175,491

Internal service funds are used by management to charge the costs of insuranceto individual funds. The net revenue of certain activities ofinternal service funds is reported with governmental activities. 59,823

Change in net assets of governmental activities (1,211,040)$

HIGHLANDS COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL GENERAL FUND



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Variance withFinal Budget

PositiveOriginal Final Actual (Negative)

REVENUESTaxes 33,890,955$ 33,890,955$ 34,915,497$ 1,024,542$ Licenses and Permits 23,000 23,000 17,690 (5,310) Intergovernmental 10,655,121 11,296,789 12,767,670 1,470,881 Charges for Services 5,166,875 5,166,875 5,804,315 637,440 Fines and Forfeitures 68,500 68,500 114,898 46,398 Net Change in Fair Value of Investments 217,000 217,009 170,519 (46,490) Miscellaneous 1,354,214 1,481,489 1,398,007 (83,482)

Total Revenues 51,375,665 52,144,617 55,188,596 3,043,979


General Government 15,616,104 16,866,656 14,765,545 2,101,111 Public Safety 33,912,169 34,916,771 32,615,295 2,301,476 Physical Environment 2,460,173 2,423,710 1,699,887 723,823 Transportation 53,682 53,682 53,632 50 Economic Environment 1,368,636 1,388,346 1,303,732 84,614

Human Services 3,065,288 2,987,160 2,825,242 161,918 Culture and Recreation 2,839,294 2,927,077 2,525,424 401,653 Court Related 1,445,992 1,487,027 1,331,000 156,027

Debt Service:Principal Retirement 142,399 142,399 142,399 - Interest and Fiscal Charges 5,897 5,897 5,897 -

Total Expenditures 60,909,634 63,198,725 57,268,053 5,930,672

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (9,533,969) (11,054,108) (2,079,457) 8,974,651

OTHER FINANCING SOURCES (USES)Transfers In - - 55,037 55,037 Transfers Out (587,683) (694,947) (368,557) 326,390

Total Other Financing Sources (Uses) (587,683) (694,947) (313,520) 381,427

NET CHANGE IN FUND BALANCE (10,121,652) (11,749,055) (2,392,977) 9,356,078

Fund Balance, October 1, 2010 10,121,652 11,749,055 23,840,215 12,091,160

FUND BALANCE, SEPTEMBER 30, 2011 -$ -$ 21,447,238$ 21,447,238$

Budget


BUDGET AND ACTUAL COUNTRY TRANSPORTATION TRUST FUND



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REVENUESTaxes 4,510,000$ 4,510,000$ 4,907,608$ 397,608$ Licenses and Permits 30,000 30,000 32,790 2,790 Intergovernmental 2,507,050 2,507,050 2,671,171 164,121 Charges for Services 100,000 100,000 66,484 (33,516) Net Change in Fair Value of Investments 48,000 48,000 21,742 (26,258) Miscellaneous 1,132,357 1,214,285 1,536,716 322,431

Total Revenues 8,327,407 8,409,335 9,236,511 827,176


Transportation:County Engineer 1,565,219 1,632,442 1,363,946 268,496 Roads and Bridges 5,317,231 5,646,496 4,497,111 1,149,385 Bridge and Concrete 281,346 287,337 232,381 54,956 Maintenance Shop 726,585 808,545 647,458 161,087

Traffic Operations 867,298 927,352 753,284 174,068 Mowing - Right of Ways 513,724 535,358 499,921 35,437 County Shell Pit 189,951 236,921 202,158 34,763 Multi-Use Paths 98,324 98,324 - 98,324


NET CHANGE IN FUND BALANCE (1,232,271) (1,763,440) 1,040,252 2,803,692

Fund Balance - October 1, 2010 1,232,271 1,763,440 5,424,556 3,661,116

FUND BALANCE - SEPTEMBER 30, 2011 -$ -$ 6,464,808$ 6,464,808$

Budget


BUDGET AND ACTUAL LOCAL GOVERNMENT INFRASTRUCTURE SURTAX FUND



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REVENUES Taxes 7,000,000$ 7,000,000$ 7,280,803$ 280,803$ Intergovernmental 341,510 2,048,750 331,356 (1,717,394) Net Change in Fair Value of Investments 150,000 150,524 94,224 (56,300) Miscellaneous - 72,328 16,571 (55,757)

Total Revenues 7,491,510 9,271,602 7,722,954 (1,548,648)


General Government:Central Services 401,702 626,702 243,147 383,555 Supervisor of Elections 650,491 641,254 8,789 632,465 Public Defender 650,000 584,119 565,670 18,449

Total General Government 1,702,193 1,852,075 817,606 1,034,469

Public Safety:Sheriff - - - - County Jail 532,359 1,147,902 1,041,999 105,903 Emergency Management 55,000 55,000 - 55,000 Communications Program 59,000 59,000 58,943 57 Ambulance Service 402,508 252,508 80,220 172,288

Total Public Safety 1,048,867 1,514,410 1,181,162 333,248

Physical Environment:Natural Resources 120,000 120,000 - 120,000

Total Natural Resources 120,000 120,000 - 120,000

Transportation:Road and Bridges 18,639,878 21,189,553 4,978,341 16,211,212 County Shell Pit - 200,000 54,996 145,004 Sebring Airport Authority 54,349 54,349 - 54,349 Avon Park Airport 250,000 250,000 - 250,000

Total Transportation 18,944,227 21,693,902 5,033,337 16,660,565

Economic Environment:Veteran's Services 50,982 50,982 - 50,982

Total Economic Environment 50,982 50,982 - 50,982

Human Services:Animal Control - 15,385 3,158 12,227

Total Human Services - 15,385 3,158 12,227

Culture and Recreation:Recreation Department 659,571 608,034 215,236 392,798 Parks Department 1,319 - - -

Total Culture and Recreation 660,890 608,034 215,236 392,798

Budget


BUDGET AND ACTUAL LOCAL GOVERNMENT INFRASTRUCTURE SURTAX FUND (CONTINUED)



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EXPENDITURES (CONTINUED)Current (Continued):

Debt Service:Principal Retirement 2,066,565 4,386,733 3,811,733 575,000 Interest and Fiscal Charges 961,959 646,326 560,697 85,629 Debt Issuance Costs - - 37,980 (37,980)

Total Debt Service 3,028,524 5,033,059 4,410,410 622,649


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (18,064,173) (21,616,245) (3,937,955) 17,678,290

OTHER FINANCING SOURCES (USES)Transfers In 651,943 781,936 1,349,826 567,890 Transfers Out (769,514) (770,167) (118,224) 651,943 Issuance of Refunding Note - 11,890,000 11,890,000 - Payment to Refunded Bond Escrow Agent - (12,032,100) (12,031,932) 168

Total Other Financing Sources (Uses) (117,571) (130,331) 1,089,670 1,220,001


Fund Balance - October 1, 2010 18,181,744 21,746,576 23,361,063 1,614,487

FUND BALANCE - SEPTEMBER 30, 2011 -$ -$ 20,512,778$ 20,512,778$

Budget

HIGHLANDS COUNTY, FLORIDA STATEMENT OF NET ASSETS

PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2011


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GovernmentalActivities -

Nonmajor InternalSolid Energy Enterprise Service

Waste Recovery Funds Total Funds

ASSETSCurrent Assets:

Cash and Cash Equivalents 7,478,783$ 538,858$ 583,210$ 8,600,851$ 7,433,172$ Investments - - - - 173,564 Accounts Receivable - Net 320,356 - 21,259 341,615 349 Interest Receivable 960 - - 960 - Due from Other Funds 29,663 - - 29,663 - Due from Other Governmental Units 72,263 - - 72,263 172 Prepaid Items - 108 - 108 - Inventory - 73,100 - 73,100 -

Total Current Assets 7,902,025 612,066 604,469 9,118,560 7,607,257

Noncurrent Assets:Restricted Cash and Cash Equivalents 80,833 - 116,728 197,561 - Advances to Other Funds 329,591 - - 329,591 -

Total Restricted Assets 410,424 - 116,728 527,152 -

Capital Assets:(Net of $10,764,892 Accumulated Depreciation) 9,063,552 3,009,391 2,992,554 15,065,497 -

Total Noncurrent Assets 9,473,976 3,009,391 3,109,282 15,592,649 -

Total Assets 17,376,001$ 3,621,457$ 3,713,751$ 24,711,209$ 7,607,257$

Business-Type Activities - Enterprise Funds

HIGHLANDS COUNTY, FLORIDA STATEMENT OF NET ASSETS (CONTINUED)



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LIABILITIESCurrent Liabilities:

Vouchers Payable 428,877$ 1,210$ 14,834$ 444,921$ 10,373$ Due to Other Funds - - 33,247 33,247 - Accrued Interest Payable 7,440 9,481 4,791 21,712 - Accrued Wages Payable 9,825 - 1,899 11,724 - Deferred Revenue - - 10,408 10,408 - Compensated Absences - Current Portion 7,956 - 2,004 9,960 - Note Payable and Capital Leases - Current Portion 410,927 189,616 113,812 714,355 - Landfill Closure Liability - Current Portion 85,020 - - 85,020 - Claims Payable - - - - 25,888

Total Current Liabilities 950,045 200,307 180,995 1,331,347 36,261

Long-Term Liabilities:Payable from Restricted Assets - Customer Deposits 80,833 - 73,969 154,802 - Compensated Absences Payable 71,604 - 18,034 89,638 4,605,398 Advances from Other Funds - 329,591 - 329,591 - Notes Payable and Capital Leases 168,609 1,143,420 241,758 1,553,787 - Other Post-Employment Benefits 120,254 - 24,417 144,671 - Landfill Closure Liability 6,238,718 - - 6,238,718 -

Total Long-Term Liabilities 6,680,018 1,473,011 358,178 8,511,207 4,605,398

Total Liabilities 7,630,063 1,673,318 539,173 9,842,554 4,641,659

Net Assets:Invested in Capital Assets, Net of Related Debt 8,484,016 1,676,355 2,636,984 12,797,355 - Restricted for Debt Service - - 42,759 42,759 - Unrestricted 1,261,922 271,784 494,835 2,028,541 2,965,598

Total Net Assets 9,745,938$ 1,948,139$ 3,174,578$ 14,868,655 2,965,598$

Adjustment to Reflect Consolidation of Internal Service Fund Activities Related to Enterprise Funds 475,848

Net Assets of Business-Type Activities 15,344,503$


HIGHLANDS COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS



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OPERATING REVENUESCharges for Services 3,412,650$ 2,291,746$ 675,902$ 6,380,298$ -$ Special Assessments 4,486,036 - - 4,486,036 - Sale of Recyclable Materials 401,291 - - 401,291 - Miscellaneous 22,949 10,675 3,055 36,679 2,012,055

Total Operating Revenues 8,322,926 2,302,421 678,957 11,304,304 2,012,055

OPERATING EXPENSESPersonal Services 1,146,005 - 175,019 1,321,024 - General and Administrative 6,366,149 1,817,782 297,087 8,481,018 524,911

Insurance and Claims - - - - 1,437,917 Depreciation 685,351 120,303 153,509 959,163 -

Total Operating Expenses 8,197,505 1,938,085 625,615 10,761,205 1,962,828

Operating Income (Loss) 125,421 364,336 53,342 543,099 49,227

NONOPERATING REVENUES (EXPENSES)Operating Grants 88,974 - - 88,974 - Net Change in Fair Value of Investments 19,375 573 1,151 21,099 20,433 Water Impact Fees - - 13,459 13,459 - Interest Expense (35,100) (69,431) (16,214) (120,745) -

Total Nonoperating Revenues (Expenses), Net 73,249 (68,858) (1,604) 2,787 20,433

Change In Net Assets 198,670 295,478 51,738 545,886 69,660

Net Assets, October 1, 2010 9,547,268 1,652,661 3,122,840 - 2,895,938

Total Net Assets, September 30, 2011 9,745,938$ 1,948,139$ 3,174,578$ 2,965,598$

Adjustment to Reflect Consolidation of Internal Service Fund Activities Related to Enterprise Funds 9,837 Change in Net Assets of Business-Type Activities 555,723$


HIGHLANDS COUNTY, FLORIDA STATEMENTS OF CASH FLOWS



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CASH FLOWS FROM OPERATING ACTIVITIESCash Received from Customers 7,880,566$ 2,304,062$ 674,731$ 10,859,359$ 2,011,332$ Cash Payments for Personal Services (1,183,760) - (186,800) (1,370,560) - Cash Payments to Vendors (6,205,247) (1,834,371) (307,947) (8,347,565) (1,466,959) Cash Payments to Employees for Services - - - - (786,878) Customer Deposits 29,145 - 315 29,460 - Other Miscellaneous Cash Received 401,291 - - 401,291 -

Net Cash Provided (Used) by Operating Activities 921,995 469,691 180,299 1,571,985 (242,505)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Impact Fees Received - - 13,459 13,459 - Grant Funds Received 18,178 - - 18,178 - Advances from (to) Other Funds 49,025 (49,025) - - - Transfers from (to) Other Funds 18,741 - - 18,741 -

Net Cash Provided (Used) by Noncapital Financing Activities 85,944 (49,025) 13,459 50,378 -

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Capital Grants - 86,101 - 86,101 - Acquisition of Capital Assets (93,385) - - (93,385) - Principal Payments on Borrowings (488,099) (181,516) (109,348) (778,963) - Interest Payments on Borrowings (39,806) (70,734) (17,687) (128,227) -

Net Cash (Used) by Capital And Related Financing Activities (621,290) (166,149) (127,035) (914,474) -

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Investments - - - - (70,826) Sale of Investments - - - - 20,613 Net Investment Income 19,517 573 1,151 21,241 9,661

Net Cash Provided (Used) by Investing Activities 19,517 573 1,151 21,241 (40,552)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 406,166 255,090 67,874 729,130 (283,057)

Cash and Cash Equivalents - October 1, 2010 7,153,450 283,768 632,064 8,069,282 7,716,229

CASH AND CASH EQUIVALENTS - SEPTEMBER 30, 2011 7,559,616$ 538,858$ 699,938$ 8,798,412$ 7,433,172$


HIGHLANDS COUNTY, FLORIDA STATEMENTS OF CASH FLOWS (CONTINUED)



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RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating Income 125,421$ 364,336$ 53,342$ 543,099$ 49,227$ Adjustments To Reconcile Operating Income to Net Cash Provided (Used) by Operating Activities:

Depreciation 685,351 120,303 153,509 959,163 - Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable (39,565) 1,641 (3,515) (41,439) 1,009 (Increase) Decrease in Due from Other Governmental Units - - - - (71) (Increase) Decrease in Inventory - (10,101) - (10,101) - (Increase) Decrease in Prepaid Items - (108) - (108) - Increase (Decrease) in Vouchers Payable (41,230) - (9,410) (50,640) (2,823) Increase (Decrease) in Due to Other Funds - - (1,450) (1,450) - Increase (Decrease) in Accrued Wages Payable (39,922) (6,380) (5,524) (51,826) - Increase (Decrease) in Compensated Absences (19,968) - (10,282) (30,250) (288,756) Increase (Decrease) in Landfill Closure Liability 202,132 - - 202,132 - Increase (Decrease) in Deferred Revenues (1,504) - (711) (2,215) (1,091) Increase (Decrease) in Customer Deposits 29,145 - 315 29,460 - Increase (Decrease) in Other Post- Employment Benefits 22,135 - 4,025 26,160 -

Total Adjustments 796,574 105,355 126,957 1,028,886 (291,732)

Net Cash Provided (Used) by Operating Activities 921,995$ 469,691$ 180,299$ 1,571,985$ (242,505)$

RECONCILIATION OF ENTERPRISE FUND CASH AND CASH EQUIVALENTS TO COMBINING BALANCE SHEET CASH AND CASH EQUIVALENTS

Cash and Temporary Investments 7,559,616$ 538,858$ 699,938$ 8,798,412$ 7,433,172$ Less: Restricted Cash and Investments 80,833 - 116,728 197,561 -

Total Unrestricted Cash and Cash Equivalents 7,478,783$ 538,858$ 583,210$ 8,600,851$ 7,433,172$


HIGHLANDS COUNTY, FLORIDA STATEMENT OF FIDUCIARY ASSETS

AGENCY FUNDS SEPTEMBER 30, 2011


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AgencyFunds

ASSETSCash and Cash Equivalents 2,544,933$ Investments 232,814 Accounts Receivable - Net 8,196 Due from Other Governmental Units 31,751

Total Assets 2,817,694$

LIABILITIESVouchers Payable 7,886$ Due to Other Governmental Units 1,815,975 Due to Others 345,673 Deposits 551,962 Tax Deed Surplus 96,198

Total Liabilities 2,817,694$

NOTES TO FINANCIAL STATEMENTS Note Page

1. Summary of Significant Accounting Policies ........................................................... 48-70

2. Cash, Cash Equivalents and Investments .............................................................. 70-72

3. Accounts Receivable .............................................................................................. 73

4. Capital Assets ......................................................................................................... 74-76

5. Interfund Balances .................................................................................................. 76-77

6. Restricted Assets .................................................................................................... 77

7. Long-Term Liabilities ............................................................................................... 78-83

8. Leases .................................................................................................................... 84

9. Personnel Commitments ......................................................................................... 84-87

10. Landfill Closure and Postclosure Care Cost ........................................................... 88

11. Miscellaneous Revenue .......................................................................................... 88

12. Major Customers ..................................................................................................... 89

13. Contingent Liabilities ............................................................................................... 89

14. Risk Management ................................................................................................... 89-90

15. Retirement Plan ...................................................................................................... 91-92

16. Fund Balance Deficit ............................................................................................... 92

17. Interfund Transfers .................................................................................................. 93

HIGHLANDS COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

Highlands County (County) is a non-charter County established under the Constitution and the laws of the State of Florida. The six offices elected county-wide are as follows: Board of County Commissioners composed of five members, Clerk of Courts, Property Appraiser, Tax Collector, Sheriff, and Supervisor of Elections. The Board of County Commissioners (Board), as the legislative body for the County, budgets and provides the funding used by the separate constitutional offices with the exception of fees collected by the Tax Collector, Property Appraiser, and the Clerk’s court operations. Under the direction of the Clerk of Courts, the Division of Business Services maintains the accounting system for the Board's operations. The Clerk of Courts (Clerk), Property Appraiser (Appraiser), Tax Collector (Collector), Sheriff, and Supervisor of Elections (Supervisor) each maintain their own accounting system. The operations of the Board and each constitutional office have been combined in these financial statements. As required by accounting principles generally accepted in the United States of America (GAAP), these financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the government's operations and so data from these units are combined with data of the primary government. The discretely presented component unit, on the other hand, is reported in a separate column in the combined financial statements to emphasize that it is legally separate from the government. The discretely presented component unit has a September 30 fiscal year-end. Blended Component Units

The following component units are included in the accompanying financial statements as part of the primary government because they satisfy the criteria in Governmental Accounting Standards Board (GASB) Statement No. 14 for blending:

Lake Placid Sun-N-Lake Estates Fire District was established by Ordinance 81-2 to provide fire protection services to the residents of the District. The Board is the ex- officio board of supervisors, the governing board of the District, and approves the annual budget of the District. The Fire District is operated as a special revenue fund of the Board. DeSoto City Special Benefit Fire District was established by Ordinance 82-6 to provide fire protection services to the residents within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board.


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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A. Reporting Entity (Continued)

Blended Component Units (Continued)

Orange Villa Special Benefit District was established by Ordinance 79-1 to provide street and recreational lights within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Hickory Hills Special Benefit District was established by Ordinance 87-3 to provide street and recreational facilities within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Placid Lakes Special Benefit District was established by Ordinance 92-10 to provide maintenance of recreational areas, streets, fire protection, and canals. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Sebring Country Estates Special Benefit District was established by Ordinance 78-4 to provide installation and maintenance of street lighting within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Istokpoga Marsh Watershed Improvement District was established by Ordinance 80-2 to provide flood and erosion control and improvements to waterways within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Improvement District is operated as a special revenue fund of the Board. Avon Park Estates Special Benefit District was established by Ordinance 80-5 to provide road maintenance, improvements, reconstruction and paving, drainage maintenance, maintenance of streetlights, and other purposes within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board.


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Highlands Lakes Special Tax District was established by Ordinance 84-1 to provide fire protection services within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Tax District is operated as a special revenue fund of the Board. Highlands Park Special Benefit Fire District was established by Ordinance 87-3 to provide fire protection services directly, or by assistance, to local volunteer fire departments on property located within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board. Highlands Park Estates Improvement Trust was established by resolution in 1981 (Resolution Book 6, Page 20) to assure maintenance, construction and repairs on public thoroughfares in Highlands Park Estates Subdivision. The Improvement Trust is operated as a special revenue fund of the Board. Leisure Lakes Special Benefit Fire District was established by Ordinance 85-4 to provide fire protection services within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board. Sebring Hills Special Benefit District was established by Ordinance 89-5 to provide street lights within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Red Hill Farms Improvement District was established by Ordinance 89-16 to provide construction and maintenance of roads and drainage facilities within the District. The Board serves as the governing body of the District and approves the annual budget of the District. The Improvement District is operated as a special revenue fund of the Board. Orange Blossom Estates Special Benefit District was established by Ordinance 90-16 to provide road maintenance, construction of roads, and drainage facilities. The Board serves as the governing body of the District and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board.


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Sun-N-Lakes of Lake Placid Recreation District was established by Ordinance 92-35 to provide recreational facilities, maintenance of parks and installation and maintenance of streetlights within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Recreation District is operated as a special revenue fund of the Board. Sebring Acres Special Benefit District was established by Ordinance 94-14 and Section 125.01(1)(q), Florida Statutes, to provide flood and erosion control, water and sewer systems, road maintenance, fire protection, recreational facilities, and street lighting within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Orange Blossom (Unit 12) Special Benefit District was established by Ordinance 95-39 and Section 125.01(1)(q), Florida Statutes, to provide flood and erosion control, water and sewer systems, fire protection services, recreational facilities, road maintenance, and street lighting within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Lake Haven Estates Special Benefit District was established by Ordinance 95-34 and Section 125.01(1)(q), Florida Statutes, to provide street lighting within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Lorida Special Benefit Fire District was established by Ordinance 96-20 to provide fire protection services within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board. Lake Placid Special Benefit Fire District was established by Ordinance 98-03 to provide fire protection services within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board.


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Highway Park Special Benefit District was established by Ordinance 98-36 to provide and maintain street lighting within the District and pay the electrical bills incurred. The Board is the ex-officio board of supervisors, is the governing body of the District and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. Sun-N-Lake 1-20 Improvement Trust was established by Resolution 2001-96 to assure construction of drainage and paved streets in Units 1 through 20 of Sun-n-Lake Estates of Lake Placid Subdivision. The Improvement Trust is operated as a special revenue fund of the Board. Highlands Park Estates Special Benefit District was established by Ordinance 00-25 to provide facilities and improvements within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board. West Sebring Special Benefit Fire District was established by Ordinance 01-02-6 to provide fire protection services within the District. The Board is the ex-officio board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board. Venus Special Benefit Fire District was established by Ordinance 96-19 to provide fire protection services within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit Fire District is operated as a special revenue fund of the Board. Placid Lakes Fire District was established by Ordinance 03-04-6 to provide fire protection services within the District. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the district. The Fire District is operated as a special revenue fund of the Board. Thunderbird Hill Wastewater Special Benefit District was established by Ordinance 07-08-13 to track the special assessment financing of the upgrade, construction and operations of the wastewater infrastructure for the Thunderbird Hills area. The Board serves as the board of supervisors, the governing body of the District, and approves the annual budget of the District. The Special Benefit District is operated as a special revenue fund of the Board.


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Discretely Presented Component Unit

The financial statements include the following discretely presented component unit:

Industrial Development Authority The Highlands County Industrial Development Authority (Authority), established by a resolution of the Board, is a legally separate entity governed by a board appointed by the County Commission. The Authority’s function is to finance and refinance public purpose projects as described in Sections 159.44-159.53, Florida Statutes, and to foster economic development of the County. The Authority is dependent upon the Board for a significant portion of its funding and is presented as a governmental fund type. Complete financial statements for the Industrial Development Authority may be obtained at 2113 US 27 South, Sebring, Florida 33870.

B. Measurement Focus and Basis of Accounting

The basic financial statements of the County are composed of the following:

Government-wide financial statements Fund financial statements Notes to the financial statements

Government-Wide Financial Statements

Government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include separate columns for the governmental and business-type activities of the primary government, as well as its discretely presented component unit. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33 – Accounting and Financial Reporting for Nonexchange Transactions.


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B. Measurement Focus and Basis of Accounting (Continued)

Government-Wide Financial Statements (Continued)

Program revenues derive directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry, as a whole; they reduce the cost of the function to be financed from the government’s general revenues. Program revenues include charges for services, program specific operating grants and contributions and program specific capital grants and contributions. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. In the State of Florida, certain state shared revenues are considered to be unrestricted general revenues. Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure. As a general rule, the effect of interfund activity, except for interfund services provided and used, has been eliminated from the government-wide financial statements. The County chooses to eliminate the indirect costs between governmental activities to avoid a “doubling up” effect. The County’s fiduciary funds are presented in the fund financial statements by type (agency). Since these assets are being held for the benefit of a third party and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. Fund Financial Statements

The underlying accounting system of the County is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.


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Fund Financial Statements (Continued)

Fund financial statements for the primary government’s governmental, proprietary and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental and enterprise funds. The fiduciary statement includes financial information for the agency funds. The agency funds of the County primarily represent assets held by the County in a custodial capacity for other individuals or governments. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources and then from unrestricted resources. Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Property taxes, intergovernmental revenues and interest earned associated with the current fiscal period are all considered to be susceptible to accrual and have been recorded in the current fiscal period. All other revenue items are considered to be measurable only when cash is received by the County. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental funds operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Noncurrent portions of long-term receivables (special assessment) due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.


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Governmental Funds (Continued)

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as another financing source rather than as a fund liability. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Proprietary Funds

The County’s enterprise funds and internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. The Board applies all Statement of Financial Accounting Standards and Interpretations issued before November 30, 1989 except those that conflict with or contradict Statements of Government Accounting Standards. The County has elected not to apply Financial Accounting Standards Board Pronouncements issued after November 30, 1989. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The operating revenues of the County’s enterprise funds, the Water and Sewer Units, the Solid Waste Disposal System, and Energy Recovery System are charges for services to customers. Operating expenses of these operations include salaries, contractual services, materials and supplies, utilities, equipment rental and maintenance, administrative charges, and depreciation. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the County’s policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted assets are available. Amounts paid to acquire capital assets are capitalized as assets in the fund financial statements, rather than reported as an expense. Proceeds of long-term debt are recorded as a liability in the fund financial statements, rather than as an other financing source. Amounts paid to reduce long-term indebtedness are reported as a reduction of the related liabilities, rather than as an expense.


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Basis of Presentation

GASB Statement No. 34 sets forth minimum criteria (percentage of the assets, liabilities, revenues, or expenditures/expenses of either fund category and the governmental and enterprise combined) for the determination of major funds. The nonmajor funds are combined in a column in the fund financial statements and detailed in the combining section. Governmental Major Funds

General Fund – The General Fund is the general operating fund of the County. It is used to account for all financial resources, except those required to be accounted for in another fund. County Transportation Trust – To account for the operations of the road and bridge department. Financing is provided principally by the County's share of state gasoline taxes and the sixth-cent local option gas tax. Local Government Infrastructure Surtax – To account for the voted one-cent local option sales surtax. The proceeds for this surtax may only be expended on infrastructure (fixed capital outlay) projects which have a life expectancy of five or more years.

Proprietary Major Funds

Solid Waste – This fund accounts for all facilities and administration relating to the sanitary disposal of solid waste (refuse) including debt service payments on all outstanding Solid Waste Facility long-term debt. Energy Recovery – This fund accounts for the operation of a County owned and operated asphalt plant.

Other Fund Types

Internal Service Funds – Internal Service Funds account for risk retention, employee benefit, insurance, and compensated absences provided to other departments of the County on a cost reimbursement basis. Agency Funds – The Agency Funds account for all assets held by the County in its capacity as custodian or agent for individuals, other governmental units and non-public organizations. The Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. A description of each agency fund can be found on pages 208-209.


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C. Budgets and Budgetary Accounting

The following are the procedures followed by the Board in establishing the budget for Highlands County:

1. On or before June 1 of each year, the Sheriff, the Clerk, the Collector and the Supervisor submit to the Board a tentative budget for their respective offices for the ensuing fiscal year.

2. Within fifteen days after certification of the ad valorem tax roll by the Appraiser, the Office of Management and Budget submits to the Board a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them.

3. By Board resolution, a tentative budget is submitted to the public and public hearings are held to obtain taxpayers' comments.

4. Within twenty days after adoption of the tentative budget, a final budget is submitted for review and adoption at a final public hearing.

5. The County's operating budget is legally enacted through passage of a resolution at the final public hearing. Accordingly, all fund types have an adopted budget as required by Section 129.03, Florida Statutes.

6. Section 129.07, Florida Statutes, as amended in 1978, provides that only expenditures in excess of total fund budgets are unlawful. However, because the Board acts on all budget changes between departments, this becomes the level of control. The budgetary data presented herein was amended by the Board during the year in a legally permissible manner.

7. Formal budgetary integration is employed as a management control device during the year for all Governmental and Proprietary Fund Types except for Court, Public Records Modernization Trust Fund, Teen Court Operations Fund, Court Related Technology Modernization Trust Fund, Court Operations Modernization Trust Fund, Community Donations Fund, and the Inmate Welfare Fund, which do not have legally adopted budgets.


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C. Budgets and Budgetary Accounting (Continued)

8. Annual appropriated budgets for the General, Special Revenue, Capital Projects, and Proprietary Funds are legally adopted on a basis consistent with GAAP. However, the only funds legally required to report budgets are the General and Special Revenue Funds.

9. It is the Board's policy to amend the budget when unanticipated revenues and expenditures occur.

10. All appropriations lapse at the close of the fiscal year.

D. Reconciliation of Government-Wide and Fund Financial Statements

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets

Total fund balances” of the County’s governmental funds ($60,413,144) differs from “net assets” of governmental activities ($245,568,734) reported in the statement of net assets. This difference primarily results from the long-term economic focus of the statement of net assets versus the current financial resources focus of the governmental fund balance sheet.

Capital Related Items

When capital assets (property, plant, equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the statement of net assets included those capital assets among the assets of the County as a whole.

Cost of Capital Assets 248,497,620$ Accumulated Depreciation/Amortization (48,805,088)

Total Capital Assets 199,692,532$

Receivable Transactions

Certain receivables are not available to pay current period expenditures, and therefore are reported as deferred revenue in the funds. Balances as of September 30, 2011 were:

Deferred Revenue 1,800,000$


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D. Reconciliation of Government-Wide and Fund Financial Statements (Continued)

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Assets (Continued)

Long-Term Debt Transactions

Long-term liabilities applicable to the County’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the statement of net assets. Balances as of September 30, 2011 were:

Notes and Revenue Certificates Payable (14,318,841)$ Capital Leases (179,374) Other Postemployment Benefits (4,327,193)

Total Long-Term Liabilities (18,825,408) Less deferred charges on refunding of bonds 161,738

(18,663,670)$

Accrued Interest

Accrued liabilities in the statement of net assets differ from the amount reported in governmental funds due to accrued interest on notes payable and revenue certificates.

Accrued Interest on Notes Payable and Revenue Certificates (163,022)$

Internal Service Funds

Internal service funds are used by management to charge the costs of risk retention, employee benefits and compensated absences to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets because they primarily serve governmental activities of the County.

Internal Service Funds 2,489,750$

Elimination of Interfund Receivables/Payables

Interfund receivables and payables in the amount of $323,501 between governmental funds must be eliminated from the statement of net assets.


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Explanation of Differences Between the Governmental Fund Operating Statement and the Statement of Activities:

The “net change in fund balances” for governmental funds ($5,704,737) differs from the “change in net assets” for governmental activities ($1,211,040) reported in the statement of activities. The differences arise primarily from the long-term economic focus of the statement of activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

Capital Related Items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation/amortization expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net assets decrease by the amount of depreciation/amortization expense charged for the year.

Capital Outlay 7,026,625$ Depreciation/Amortization Expense (5,628,468)

Difference 1,398,157$

In the statement of activities, the gain/loss on the sale of capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the capital assets sold.

Sale of Capital Assets (142,862)$

Long-Term Debt Transactions

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.


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Explanation of Differences Between the Governmental Fund Operating Statement and the Statement of Activities (Continued)

Long-Term Debt Transactions (Continued)

Increase in Other Post-Employment Benefits (909,568)$ Issue of Notes Payable (11,890,000) Bond Refunding Costs 161,738 Principal Repayments:

Bonds Payable 15,480,000 Notes Payable 231,782 Revenue Certificates 61,667 Capital Leases 167,469

Net Adjustment 3,303,088$

Revenue Transactions

Some revenue reported in the statement of activities will not be collected for several months after the fiscal year-end and, therefore, are not reported as revenue in the governmental funds.

Intergovernmental Revenue (300,000)$

Accrued Interest

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Net Change in Interest Payable 175,491$

Internal Service Funds Operating Loss

The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets because they primarily serve governmental activities of the County.

Internal Service Funds Operating Income Allocated to Governmental Activities 39,390$ Internal Service Funds Non-Operating Revenues Allocated to Governmental Activities 20,433

Net Adjustment 59,823$


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E. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand as well as demand deposits and investments with original maturities of three months or less from the date of acquisition. Cash balances from the majority of funds are pooled for investment purposes. Earnings from such investments are allocated to the respective funds based on applicable cash participation by each fund. The investment pools are managed such that all participating funds have the ability to deposit and withdraw cash as if they were demand deposit accounts and, therefore, all balances representing participants' equity in the investment pools are classified as cash equivalents for purposes of these financial statements. For the purpose of the statement of cash flows, each fund's equity in the investment pool is considered to be a cash equivalent since deposits and withdrawals can be made at anytime without prior notice or penalty.

F. Investments

In accordance with the provisions of GASB Statement No. 31, the County reports investments at their fair value on the balance sheet with unrealized gains and losses charged or credited to the net change in fair value of investments. The fair value of each security is based on the quoted market value provided by the broker. Money market investments and investments in SEC Rule 2a-7 like pools, which include the Local Government Surplus Funds Trust Funds PRIME fund, are reported as cash equivalents at amortized cost. The County invests surplus public funds in accordance with Section 218.415, Florida Statutes.

G. Accounts Receivable

Receivables are shown net of allowance for doubtful accounts. Doubtful accounts are those unpaid more than 180 days for Emergency Medical Services (EMS) and 90 days for all other accounts. Receivables are set up when services are rendered for EMS, Landfill, and Utilities. The retired employees’ health insurance premiums receivables are billed on a monthly basis. Receivables related to grants are not reflected until expenditures are recorded against that grant. Reinsurance recovery receivable is determined by those insurance claims that exceed the County's insurance limit, but are covered by the County's excess coverage.


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H. Interfund Transactions

Interfund transactions are accounted for in the following manner:

Transactions for services rendered are recorded as revenues in the receiving fund and as expenditures or expenses (as appropriate) in the disbursing fund. Transactions to reimburse a fund for expenditures made by it for the benefit of another fund are recorded as expenditures or expenses (as appropriate) in the disbursing fund and as a reduction of expenditures or expenses (as appropriate) in the receiving fund, and transactions to shift revenues from the fund budgeted to receive them to the fund budgeted to expend them are recorded as operating transfers in and out, respectively. Transactions recording equity transfers to Proprietary Funds are reported as deductions from the beginning balance of Governmental Funds and as additions to contributed capital of Proprietary Funds. Transfers are reported in the "Other Financing Sources (Uses)" section in the statement of revenues, expenditures, and changes in fund balances and in the "Transfers" section in the statement of revenues, expenses, and changes in fund net assets. As of fiscal year end, any unpaid amounts related to these transactions are reported as due to/from other funds on the balance sheet. Assets acquired or constructed by resources of a Governmental Fund which are subsequently transferred to a Proprietary Fund are accounted for as expenditures within the Governmental Fund and as contributed capital in the Proprietary Fund. Long-term interfund advances are recorded as reductions in fund balance by the advancing fund in the Governmental Fund Types. The amount advanced is reported as "Advances To Other Funds" and as "Nonspendable Fund Balance" to maintain the accountability and to properly disclose the amount available for appropriation. Repayments are credited to fund balance, and corresponding reductions are made in the receivable.

I. Inventories

Inventories are stated at cost using the moving average cost basis. The consumption method is used to account for inventories. The cost is recorded as an expenditure at the time individual inventory items are consumed. Inventories reported in the General Fund are equally offset by nonspendable fund balance which indicates they are unavailable for appropriation.


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J. Prepaid Items

Prepaid insurance and similar items are recorded using the consumption method of accounting. Under the consumption method, services paid for in advance are reported as an asset until the period in which the services are actually consumed.

K. Property Tax

The County's property tax roll is as follows: Valuation Date January 1, 2011

Appraiser prepares the assessment roll with values as of January 1, 2011, submits this preliminary roll for approval by the Department of Revenue and notifies each taxing authority of their respective valuations. July 1, 2011

Each taxing authority holds two required public hearings and adopts a budget and ad valorem tax millage rates for the coming year. September 2011

Appraiser certifies the assessment roll and all real and tangible personal property taxes are due and payable (levy date). November 2011

Collector mails a notice of taxes to each property owner on the assessment roll. Taxes may be paid November 2011 through March 2012 with the following applicable discounts:

Month Discount PercentNovember 4December 3January 2February 1

March 0

All unpaid taxes on real and tangible personal property become delinquent. April 1, 2012

A list of unpaid tangible personal property taxes and a list of unpaid real property taxes are advertised. April and May 2012

Tax certificates are sold on all real estate parcels with unpaid real property taxes (lien date). June 1, 2012

A court order is obtained authorizing the seizure and sale of personal property if the taxpayer fails to pay the delinquent personal property taxes. June 1, 2012


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K. Property Tax (Continued)

Ad valorem taxes on any real property with more than $100 of estimated taxes due may be prepaid in installments as follows:

Payment Discount DiscountDue Amount Due Percent Due Date

First 25% of estimated tax 6.00 June 30, 2011

Second 25% of estimated tax 4.50 September 30, 2011

Third 25% of estimated tax plus 50%adjustment to actual tax 3.00 December 31, 2011

Fourth 25% of estimated tax plus 50%adjustment to actual tax 0.00 March 31, 2012

No accrual for the property tax levy becoming due in November 2011 is included in the accompanying financial statements since such taxes are collected to finance expenditures of the subsequent period. Property taxes receivable and a corresponding allowance for uncollectible property taxes are not included in the financial statements.

L. Capital Assets

Capital assets, which include property, plant, equipment, intangibles (e.g., software, easements, websites, radio frequencies, land use rights, patents, trademarks and copyrights) and infrastructure assets (e.g., roads, bridges, rights-of-way, water and sewer distribution systems and similar items) are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Governmental Accounting Standards Board Statement No. 51 established accounting and financial reporting requirements for intangible assets. Highlands County has implemented this statement by incorporating software, easements, patents, copyrights, water, timber, and land use rights as intangible assets. Information regarding intangible assets is included in Note 4 in the financial statements. The Board holds legal title for the capital assets used in the operations of the Board, the Clerk, the Appraiser, the Supervisor, and the Collector, and is accountable for them under Florida Law. Capital assets used by the Board’s governmental funds are reported in the financial statements of the County. Capital assets of the Board’s enterprise and internal service funds are reported in the Proprietary Funds financial statements.


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L. Capital Assets (Continued)

Capital assets are defined by the County as having a minimum established cost (in the table listed below) and an estimated useful life in excess of one year. Capital assets are valued at historical cost or estimated historical cost if actual is not available. Donated capital assets are recorded at estimated fair market value at the date of donation. Property, plant, equipment and intangibles are depreciated or amortized using the straight-line method over the following generally applied estimated useful lives:

Assets Years ThresholdBuildings 10 – 40 $5,000Improvements Other Than Buildings 3 – 40 $5,000Operating Machinery and Equipment 4 – 20 $5,000Software – Internally Generated 3 – 10 $15,000Software – Purchased/Leased 3 – 10 $25,000Land Use Rights – Permanent N/A $15,000Land Use Rights – Term Term $25,000Other Capital Intangibles Varies $20,000

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Capital assets acquired by lease/purchase agreements or multiple year installment purchase contracts are recorded in the governmental funds in the year acquired as capital outlay expenditures and as other financing sources in the amount of the discounted present value of the total stipulated payments. The County has elected to use the modified approach for accounting for its bridges and roadways included in the County highway system. Under this approach, the County has made the commitment to preserve and maintain these assets at levels established by the County and approved by the Board. No depreciation expense is reported for such assets, nor are amounts capitalized in connection with improvements that lengthen the lives of such assets, unless the improvements also increase their service potential. The County maintains an inventory of these assets and performs periodic condition assessments to establish that the predetermined condition level is being maintained. In addition, the County makes annual estimates of the amounts that must be expended to preserve and maintain these assets at the predetermined condition levels. Refer to RSI for additional information on infrastructure using the modified approach.


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M. Deferred Revenues

Revenues in the Governmental Fund Types which are measurable but not available are reported in accordance with the modified accrual basis of accounting as deferred revenue. The deferred revenues will be recognized as revenue in the fiscal year they become available. Revenues in the Proprietary Fund Types which have not been earned are reported in accordance with the accrual basis of accounting as deferred revenue. The deferred revenue will be recognized as revenues in the fiscal year they are earned.

N. Compensated Absences

County policy permits employees to accumulate annual and sick leave credits in varying amounts, which will be paid to employees upon termination of employment. Accumulated annual and sick leave is recorded as an expenditure/expense in an Internal Service Fund for governmental activities and in Proprietary Fund Types for the vested annual and sick leave credits. The liability for compensated absences is liquidated in the fund in which an employee’s payroll expense is normally recorded.

O. Landfill Closure Costs

The County has obtained engineering estimates of future costs to close and monitor sanitary landfill sites in accordance with State and Federal guidelines. Estimated landfill closing and monitoring costs are being accrued in the Solid Waste Enterprise Fund over the operating life of the landfill representing the commitment to fund such costs for the future.

P. Encumbrances

Encumbrance accounting, under which purchase orders, contracts and other commitments for expenditure of funds are recorded to reserve that portion of the applicable appropriation, is employed in the Governmental Fund Types. Encumbrances are not the equivalent of expenditures; but rather represent a future commitment to purchase goods or services. Although encumbrances lapse at fiscal year-end, it is the County’s intention to honor these encumbrances under authority provided in the subsequent years budget. Encumbrances outstanding as of September 30, 2011 totaled $4,067,284. Encumbrances of the major funds totaled $3,329,676 and consisted of the following: General Fund, $1,115,776; County Transportation Trust $417,816; and Local Government Infrastructure Surtax, $1,796,084. Nonmajor fund encumbrances, in the aggregate, totaled $737,608.


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Q. Operating Subsidies and Grants

Operating subsidies and grants which finance current operations are generally recorded as nonoperating revenue in the Enterprise Funds when earned and as intergovernmental revenue in the Governmental Fund Types when they become measurable and available.

R. Self-Insurance

Employee dental insurance is provided under an externally administrated self-insured plan. Contributions from the County (single rate) and the employees (family rate) pay the dental insurance plan. Contributions are based in part on the annual actuarial study performed by an enrolled actuary. The self-insurance dental plan is accounted for in an Internal Service Fund.

S. Eliminations

Eliminating entries were made between departments in the general fund.

T. Fund Balance

Governmental funds report fund balances as either spendable or nonspendable. Spendable fund balances are further classified based on the extent to which there are external and internal constraints on the spending of the fund balances. The classifications of fund balances are described as follows:

Nonspendable Fund Balance – Amounts that cannot be spent because they are either not in spendable form (such as inventories and prepaid amounts) or are legally or contractually required to be maintained intact.

Restricted Fund Balance – Amounts that can be spent only for specific purposes because of constraints imposed by external providers (such as grantors, bondholders, and higher levels of government), or imposed by constitutional provisions or enabling legislation.

Committed Fund Balance – Amounts that can be spent only for specific purposes determined by a formal action of the Board of County Commissioners, the County’s highest level of decision-making authority. Commitments may be changed or lifted only by the Board of County Commissioners taking the same formal action (ordinance) that originally imposed the constraint.

Assigned Fund Balance – Amounts intended to be used by the County for specific purposes. This includes spendable fund balance amounts established by management of the County that are neither restricted or committed.

Unassigned Fund Balance – Amounts that are available for any purpose; these amounts can be reported only in the Board’s General Fund.


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T. Fund Balance (Continued)

When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the County considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the County considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the Board has provided otherwise in its commitment or assignment actions. The Board of County Commissioners adopted a fund balance policy for the county as a whole. The County intends to maintain unassigned fund balance in the General Fund of not less than three months of the following year’s General Fund budgeted expenditures.

U. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make use of estimates that affect reported amounts in the financial statements. Actual results could differ from estimates.

V. Implementation of New Accounting Standard

The County implemented Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions, during the fiscal year ended September 30, 2011. The requirements of this statement are effective for financial statement periods beginning after June 15, 2010. GASB 54 provides more detailed fund balance classifications than in the past, and it clarifies the existing governmental fund type definitions. It bases the divisions of fund balance on the types of constraints which limit the use of resources reported in governmental funds. These individual classifications are described in the Fund Balance section of this footnote.

NOTE 2 CASH, CASH EQUIVALENTS AND INVESTMENTS

Cash and cash equivalents at September 30, 2011 consist of:

Demand Deposits 43,488,543$ Petty Cash and Change Funds 22,545 Local Government Surplus Trust Fund PRIME Fund 11,924,277

55,435,365$

Custodial Credit Risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. At year-end, the government’s deposits were entirely covered by federal depository insurance or guaranteed by qualified public depositories in Florida pursuant to Chapter 280, Florida Statutes. Other than the preceding, the County has no policy on custodial credit risk.


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NOTE 2 CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED)

Collateral is provided for demand deposits through the Florida Security for Public Deposits Act. This law establishes guidelines for qualification and participation by banks and savings associations, procedures for the administration of the collateral requirements and characteristics of eligible collateral. Under this law, the qualified public depository must pledge at least 25% of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance. Additional collateral, up to a maximum of 200%, may be required if deemed necessary under the conditions set forth in this law. Eligible collateral consists of obligations of the United States and its agencies and obligations of states and their local political subdivisions and unaffiliated corporations. Obligations pledged to secure deposits must be delivered to the State Treasurer or, with the approval of the State Treasurer, to a bank, savings association or trust company provided a power of attorney is delivered to the State Treasurer. On a monthly basis, the State Treasurer determines that the collateral has a market value adequate to cover the deposits under the provisions of this law. The County invests funds throughout the year with Florida PRIME, an investment pool administered by the State Board of Administration (SBA) under the regulatory oversight of the State of Florida. Investments in Florida PRIME are made pursuant to Chapter 125.31, Florida Statutes. The investments are not categorized because they are not evidenced by securities that exist in physical or book entry form. Throughout the year and as of September 30, 2011, Florida PRIME contained certain floating and adjustable rate securities which were indexed based on the prime rate and/or one and three month LIBOR rates. These investments represented 22% of the Florida PRIME’s portfolio at September 30, 2011. Florida PRMIE is considered to be a Rule 2a-7 like pool and is reported, at amortized cost, as a cash equivalent. On September 30, 2011, Standard and Poor’s Ratings Services assigned the Florida PRIME an “AAAm” principal stability fund rating. The weighted average days to maturity (WAM) of Florida PRIME as of September 30, 2011 was 38 days. The County also has funds invested in the Fund B Surplus Trust Fund (Fund B), an investment fund administered by the SBA. Fund B is accounted for as a fluctuating NAV pool and is reported at fair value, determined by the fair value per share of the pool’s underlying portfolio. The investment objective for Fund B is to maximize the present value of distributions to participants, to the extent reasonable and prudent, net of fees; thus weight is given not only to the realized value of security sales, but also to the speed with which monies are distributed (liquidity). As cash becomes available in Fund B, it is distributed among participant accounts in the Florida PRIME, according to each participant’s pro rata share of Fund B. All distributions from Fund B are 100% available liquid balance (ALB) upon transfer. The fair value factor for Fund B for September 30, 2011 is .7568386. As of September 30, 2011, the Board has $531,999 invested in Fund B. The weighted average life (WAL) of Fund B at September 30, 2011 was 4.82 years.


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NOTE 2 CASH, CASH EQUIVALENTS AND INVESTMENTS (CONTINUED)

Interest Rate Risk

The County’s investment pool also includes investment in the Florida Local Government Investment Trust (FLGIT), which is a public entity investment trust organized under the laws of the State of Florida. At September 30, 2011, the FLGIT portfolio included certain floating and adjustable rate securities. These securities amounted to 13.14% of the FLGIT portfolio and included 26 investments indexed on the one month LIBOR and/or the one-year CMT index. The Florida Local Government Investment Trust reports all share information at Net Asset Value (NAV) and reflects fair value accounting in accordance with GASB Statement No. 31. The value of the County’s position in the FLGIT external investment pool is the same as the value of the pools shares. Interest Rate Risk (Continued)

The County has no policy on interest rate risk. Investments and related level of risk at September 30, 2011, were as follows:

InvestmentMaturity

Investment Type Fair Value (in years)Certificates of Deposit 3,387,706$ Less than 1Florida Local Government Investment Trust Fund 19,983,399 Less than 1Local Government Surplus Funds Trust Fund - Fund B 531,999 1 - 5

23,903,104$

Credit Risk

Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The County has no policy on credit risk. Presented below is the actual rating as of September 30, 2011 for each type of investment:

CreditInvestment Type RatingCertificates of Deposit No RatingFlorida Local Government Investment Trust Fund AAAfLocal Government Surplus Funds Trust Fund - Fund B No Rating


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NOTE 3 ACCOUNTS RECEIVABLE

Accounts receivable for the individual major and nonmajor and internal service funds in the aggregate consisted of the following at September 30, 2011:

Local

County Government Nonmajor

Transportation Infrastructure Solid and Other

General Trust Surtax Waste Funds Total

Emergency Medical Services 3,694,053$ -$ -$ -$ -$ 3,694,053$

Landfill Charges - - - 274,545 - 274,545

Water and Sewer Charges - - - - 49,377 49,377

Reinsurance Recovery - - - - 349 349

Miscellaneous 256,855 216 17,025 45,811 21,755 341,662

Accounts Receivable-Gross 3,950,908 216 17,025 320,356 71,481 4,359,986

Allowance for Doubtful

Accounts (2,964,053) - - - (28,118) (2,992,171) Accounts Receivable-Net 986,855$ 216$ 17,025$ 320,356$ 43,363$ 1,367,815$

Activity in Emergency Medical Services accounts receivable was as follows: Balance - September 30, 2010 3,317,620$

Billings 5,413,415 Less:

Cash Receipts (3,347,029) Medical/Medicaid Adjustments (1,034,937) Sent to Collection (541,769) Other Adjustments (113,247)

Balance - September 30, 2011 3,694,053$


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NOTE 4 CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2011 was as follows:

Beginning Ending

Balance Increases Decreases Balances

Governmental Activities Capital Assets, not being Depreciated/Amortized:

Land 41,492,646$ 368,634$ -$ 41,861,280$

Construction in Progress 21,399,004 2,201,553 (2,827,578) 20,772,979

Infrastructure 76,495,826 982,897 - 77,478,723

Land use Rights, Permanent 1,508,562 73,791 - 1,582,353

Total Capital Assets, Not Being

Depreciated/Amortized 140,896,038 3,626,875 (2,827,578) 141,695,335

Capital Assets, Being Depreciated/Amortized:

Buildings 49,581,745 2,993,865 (165,901) 52,409,709

Improvements Other Than Buildings 10,295,199 5,883 (61,751) 10,239,331

Machinery and Equipment 38,356,926 3,121,581 (1,559,000) 39,919,507

Computer Software 4,127,739 105,999 - 4,233,738

Total Capital Assets Being

Depreciated/Amortized 102,361,609 6,227,328 (1,786,652) 106,802,285

Less: Accumulated Depreciation/Amortization for:

Buildings (17,147,892) (1,558,069) 141,046 (18,564,915)

Improvements Other Than Buildings (2,630,306) (367,979) 36,079 (2,962,206)

Machinery and Equipment (22,723,962) (3,306,440) 1,466,665 (24,563,737)

Computer Software (2,318,250) (395,980) - (2,714,230)

Total Accumulated Depreciation/Amortization (44,820,410) (5,628,468) 1,643,790 (48,805,088)

Total Capital Assets, Being Depreciated/

Amortized, Net 57,541,199 598,860 (142,862) 57,997,197

Governmental Activities Capital Assets, Net 198,437,237$ 4,225,735$ (2,970,440)$ 199,692,532$

Business-Type Activities Capital Assets, Not Being Depreciated/Amortized:

Land 1,864,131$ -$ -$ 1,864,131$

Construction in Progress 91,264 - - 91,264

Total Capital Assets, Not Being

Depreciated/Amortized 1,955,395 - - 1,955,395

Capital Assets, Being Depreciated/Amortized:

Buildings and System 695,209 51,448 - 746,657

Improvements Other Than Buildings 15,194,423 10,465 - 15,204,888

Machinery and Equipment 8,155,399 95,705 (327,655) 7,923,449

Total Capital Assets Being

Depreciated/Amortized 24,045,031 157,618 (327,655) 23,874,994

Less: Accumulated Depreciation/Amortization for:

Buildings and System (343,608) (33,525) - (377,133)

Improvements Other Than Buildings (6,602,258) (388,807) - (6,991,065)

Machinery and Equipment (3,123,285) (536,831) 263,422 (3,396,694)

Total Accumulated Depreciation/Amortization (10,069,151) (959,163) 263,422 (10,764,892)

Total Capital Assets, Being Depreciated/

Amortized, Net 13,975,880 (801,545) (64,233) 13,110,102

Business-Type Activities Capital Assets, Net 15,931,275$ (801,545)$ (64,233)$ 15,065,497$


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NOTE 4 CAPITAL ASSETS (CONTINUED)

Governmental activities construction in progress is comprised of the following:

Expended toProject September 30,

Project Authorization 2011 CommitmentInfrastructure 29,580,243$ 16,429,579$ 13,150,664$ Law Enforcement Facility 955,886 955,886 - Multi-Use Path on Memorial & College 1,723,988 64,988 1,659,000 Sebring Library Renovation 136,376 24,800 111,576 Shell Pit Mitigation 200,000 54,995 145,005 Sheriff's Office Renovations 2,127,505 750,514 1,376,991 Software 213,887 196,060 17,827 Supervisor of Elections Building Improvements 1,976,748 71,835 1,904,913 Toni Drive Mining Permit 2,412,638 2,224,322 188,316

Total 39,327,271$ 20,772,979$ 18,554,292$

Business-type activities construction in progress is comprised of the following:

Expended toProject September 30,

Project Authorization 2011 CommitmentLandfill Gas to Energy 237,586$ 54,969$ 182,617$ Leachate Recirculation and Gas Collection Expansion 200,000 36,295 163,705

Total 437,586$ 91,264$ 346,322$


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NOTE 4 CAPITAL ASSETS (CONTINUED)

Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental Activities:

General Government 1,529,590$ Public Safety 2,390,856 Physical Environment 52,499 Transportation 983,349 Human Services 129,113 Economic Environment 22,177 Culture/Recreation 434,901 Court Related 85,983

Total Depreciation/Amortization Expense - Governmental Activities 5,628,468$

Business-Type Activities:Solid Waste 685,351$ Energy Recovery 120,303 Highway Park Utility 41,731 Water and Sewer 111,778

Total Depreciation/Amortization Expense - Business-Type Activities 959,163$

NOTE 5 INTERFUND BALANCES

Interfund balances at September 30, 2011 consisted of the following amounts: Due To/From Other Funds

Due From Due ToOther Funds Other Funds

Major Funds:General Fund 35,939$ 146,625$ Solid Waste Fund 29,663 -

Nonmajor Governmental Funds 116,961 2,691 Nonmajor Enterprise Funds - 33,247

Total 182,563$ 182,563$

Amounts due to and from other funds arise from timing differences as a result of transactions and cash transfers for operating purposes.


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NOTE 5 INTERFUND BALANCES (CONTINUED)

Advances

In 2010, the General Fund advanced a nonmajor governmental fund money for wastewater improvements. The outstanding balance as of September 30, 2011 was $194,254.

In 2010, the General Fund advanced a nonmajor governmental fund money for operational cash flow. As of September 30, 2011, the outstanding balance was $9,591.

In 2010, the Solid Waste Fund advanced the Energy Recovery Fund money to cover a negative cash position. The outstanding balance as of September 30, 2011 was $329,591.

NOTE 6 RESTRICTED ASSETS

Restricted assets include those provided for by resolutions adopted by the Board. Total restricted assets as of September 30, 2011 were as follows:

Cashand Cash

Enterprise Funds EquivalentsSolid Waste:

Customer Deposits 80,833$

Water and Sewer:Customer Deposits 57,849 Sinking Fund 42,759

Total Water and Sewer 100,608

Highway Park Utility:Customer Deposits 6,920 Customer Deposits - Grant 9,200

Total Highway Park Utility 16,120

Total Restricted Assets 197,561$


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NOTE 7 LONG-TERM LIABILITIES

The summary of changes in long-term debt for the fiscal year ended September 30, 2011 is as follows:

Balance Balance

September 30, September 30, Due Within

2010 Additions Reductions 2011 One year

Governmental Activities:

Bonds Payable 15,480,000$ -$ (15,480,000)$ -$ -$

Notes Payable 2,570,623 11,890,000 (231,782) 14,228,841 1,415,847

Revenue Certificates 151,667 - (61,667) 90,000 15,000

Capital Leases 346,843 - (167,469) 179,374 85,813

Compensated Absences 4,894,155 1,522,611 (1,811,368) 4,605,398 460,540

Other Post-Employment Benefits 3,417,625 909,568 - 4,327,193 -

Less: Deferred Amounts on Refunding - (180,080) 18,342 (161,738) -

Governmental Activity

Long-Term Liabilities 26,860,913$ 14,142,099$ (17,733,944)$ 23,269,068$ 1,977,200$

Business-Type Activities:

Notes Payable 2,796,430$ -$ (608,165)$ 2,188,265$ 634,478$

Landfill Closure Liability 6,121,606 202,132 - 6,323,738 85,020

Capital Leases 250,673 - (170,796) 79,877 79,877

Compensated Absences 129,848 - (30,250) 99,598 9,960

Other Post-Employment Benefits 118,511 26,160 - 144,671 -

Business-Type Activity

Long-Term Liabilities 9,417,068$ 228,292$ (809,211)$ 8,836,149$ 809,335$


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NOTE 7 LONG-TERM LIABILITIES (CONTINUED)

The following notes payable and revenue certificates were outstanding at September 30, 2011:

RemainingPrincipalAmount

Governmental Activities Notes Payable:

$153,250 with a fixed interest rate equal to 5.78% dated December 4, 2001 with final payment due September 1, 2016. Beginning March 1, 2002, payments due in equal semiannual installments of approximately $5,108 plus interest, until maturity date, serviced from the Lorida Special Benefit Fire District for the purchase of a fire truck. The note is payable solely from the revenues generated by the service assessment on the lots benefited in the Lorida Special Benefit Fire District. This note does not constitute an indebtedness of Highlands County. 51,083$

$3,448,637 with a fixed interest rate equal to 5.78% dated October 3, 2005 with final payment due November 1, 2019. Beginning November 1, 2005, payments due in equal semiannual installments of approximately $123,200 plus interest until maturity date. Serviced from and secured by designated revenues derived from the County’s share of the one cent local discretionary infrastructure sales surtax. The note is to finance a portion of the cost of certain capital improvement projects. 2,287,758

$11,890,000 with a fixed interest rate equal to 2.48% dated October 6, 2010 with final payment due November 1, 2019. Interest payments are due on May 1 and November 1. Beginning November 1, 2011, payments are due in annual installments averaging $1,321,111 plus interest until maturity date. Serviced from and secured by designated revenues derived from the County's share of the one cent local discretionary infrastructure sales surtax. 11,890,000

Total Governmental Activities Notes Payable 14,228,841$


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Business Type Activities Notes Payable:Promissory note - $1,008,675 at 4.04% interest dated October 1, 2004 with a final payment due June 1, 2014. Beginning December 1, 2004, payments due in equal semi-annual installments of approximately $50,400 plus interest until maturity date, serviced from and secured by designated revenues derived from the Water and Sewer Utility Fund. 355,570$

Promissory note - $2,800,000 at 4.44% interest dated December 3, 2002 due in 20 semi-annual installments of $174,854 including interest beginning December 3, 2002, final payment due November 30, 2012, serviced from and secured by net revenues of the Solid Waste System. 499,657

Promissory note - $2,480,388 at 4.39% interest dated May 20, 2009 due in quarterly installments of $88,545 including interest beginning August 8, 2009, final payment due November 8, 2017, serviced from and secured by non-ad valorem revenues of the County. 1,333,036

Total Business Type Activities Notes Payable 2,188,263$


Governmental Activities Revenue Certificates:

$300,000 with a floating interest rate equal to 54% of the prime rate dated August 19, 1997 with a final payment due on June 1, 2017. Commencing on December 1, 1997, semi-annual payment of $7,500 in principal plus interest are due until maturity, serviced from the Sun-N-Lake Lake Placid Recreation Special District Fund for the construction of the Recreation Center. The revenue certificate is payable solely from the service assessments on the lots benefited in the Sun-N-Lake Recreation District. This certificate does not constitute an indebtedness of Highlands County. 90,000$

Total Governmental Activities Revenue Certificates 90,000

Total Revenue Certificates 90,000$


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On October 6, 2010, the County secured a $11,890,000 Note with an interest rate of 2.48%. The note was secured to advance refund $15,480,000 of outstanding Series 2002 Infrastructure Sales Surtax Revenue Bonds bearing an interest rate of 3% to 5%. On October 6, 2010, the County deposited the net proceeds from the Note, along with other resources, in an irrevocable trust to provide for future debt service on the refunded portion of the 2002 Series Bonds. The 2002 Bonds are considered defeased and have been removed as a liability. The remaining 2002 Bonds were called on November 10, 2010. The outstanding principal of the defeased bonds is $-0-, as of September 30, 2011. The advance refunding reduced total debt service payments over the next nine (9) years by nearly $5.4 million. This results in an economic gain (difference between the present value of the debt service payments on the old and new debt) of $1,383,543. There are a number of limitations and restrictions contained in the various notes and certificate indentures. The Board is in compliance with all significant limitations and restrictions. The annual debt service requirements to amortize all debts outstanding as of September 30, 2011 are as follows:

Year EndingSeptember 30, Principal Interest Principal Interest

2012 1,415,847$ 373,473$ 15,000$ 3,959$ 2013 1,475,283 343,713 15,000 3,270 2014 1,520,105 302,874 15,000 2,582 2015 1,560,329 260,843 15,000 1,893 2016 1,600,970 217,666 15,000 1,205

2017-2021 6,656,307 333,661 15,000 516 Total 14,228,841$ 1,832,230$ 90,000$ 13,425$

Notes Payable Revenue CertificatesGovernmental Activities

Principal Interest634,478$ 95,408$ 485,147 67,800 330,215 50,703 216,153 38,125 225,799 28,891 296,471 29,076

2,188,263$ 310,003$

Year EndingSeptember 30,

Business-Type Activities

Total

20122013201420152016

2017-2021


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As a means to lower its borrowing costs, when compared against fixed-rate notes payable at the time of issuance in December 2001, the Lorida Special Benefit Fire District entered into a fixed/float interest rate swap agreement in connection with its notes payable. The intention of the swap was to effectively change the District’s variable interest rate on the note to a synthetic fixed rate of 5.78% against a six-month floating LIBOR (variable, 2.04% plus 67% of the LIBOR rate, adjusted the first day of each March and September). The terms, including the counterparty credit rating of the outstanding swap as of September 30, 2011 are shown in the table below. The swap agreement contains scheduled reductions to the outstanding notional amounts that are expected to follow scheduled principal reductions in the debt issues. Related Debt Issue Lorida Special Benefit Fire District Fire Truck

Notional Amount $51,083

Effective Date 12/4/2001

Counterparty Bank of America, N. A.

Credit Rating (S&P) A+

Fixed Rate Paid 5.78%

Variable Rate Received USD LIBOR BBA

Termination Date 9/1/2016 Based on the swap agreement, the District owes interest calculated at a fixed rate to the counterparty (Bank of America). A series of payments calculated by applying a fixed rate of interest to a notional principal amount is exchanged for a stream of payments similarly calculated but using a floating rate of interest based off of the six month US LIBOR. In these fixed-for-floating interest rate swaps, the principal amounts are not actually exchanged between the counterparties, rather, interest payments are exchanged based on “notional amounts” or “notional principals”. Because interest rates have declined since execution of the swap, the swap had a de minimus negative fair value as of September 30, 2011.


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Credit Risk – The County is exposed to credit risk on the swap only when its fair value is positive or an asset. As of September 30, 2011, the District was not exposed to credit risk because the swap had negative fair value. However, should interest rates change and the fair value of the swap become positive, the District would be exposed to credit risk in the amount of the derivative's fair value. The swap counterparty was rated A+ by Standard & Poor's as of September 30, 2011. In addition, because a swap is a notional principal contract, no credit risk arises in respect of an amount of principal advanced by a lender to a borrower. Interest Rate Risk – The County is exposed to interest rate risk on its swap. When LIBOR decreases, the County receives a lower payout from the swap, and its net payment on the swap increases. Termination Risk – The district or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. The District will be exposed to interest at the lesser of 18% per annum or the maximum lawful rate per annum on the entire principal balance owing in the event of default. Also, if at the time of termination the swap has negative fair value, the district would be liable to the counterparty for payments equal to the fair value of the swap. Arbitrage Liability

The Tax Reform Act of 1986 instituted arbitrage regulations which address the investment of tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Federal tax law requires issuers of tax exempt bonds to rebate positive arbitrage no later than 60 days after each installment computation date and as of the final maturity date of the issue. Installment computation periods can be no longer than five years, but can be shorter at the issuer’s discretion. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service as required.

For fixed rate bond issues, the Federal Regulation permit issuers to treat any date as an installment computation date. The end of the first and second installment computation periods was June 13, 2005 and June 13, 2010, respectively, at which time the Bonds had not accrued a liability. The end of the third and final installment computation period was November 10, 2010, at which time the Bonds had been fully refunded. The arbitrage rebate liability and the yield restriction liability as of November 10, 2010 was $-0-. The gross proceeds of the Bonds did not accrue a positive arbitrage rebate liability or a positive yield restriction liability.


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NOTE 8 LEASES

Capital Leases

The Board has entered into a lease agreement as lessee for financing the acquisition of communication equipment for the Sheriff and a fire truck for the Placid Lakes Fire District. The Board has also financed the acquisition of a bulldozer, a loader, and a dump truck for the solid waste operations. These leases qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the inception date. The assets acquired through capital leases are as follows:

Governmental Business-TypeActivities Activities

Assets:Machinery and Equipment 905,698$ 804,724$ Less: Accumulated Depreciation (336,363) (373,793)

Total 569,335$ 430,931$

The future minimum lease obligations and the net present value of these minimum lease payments as of September 30, 2011 are as follows:

Year Ending Governmental Business-TypeSeptember 30 Activities Activities

2012 91,605$ 81,024$ 2013 31,157 - 2014 31,157 - 2015 31,157 - 2016 7,997 -

Total Minimum Lease Payment 193,073 81,024 Less: Amount Representing Interest (13,699) (1,147)

Present Value of Minimum Lease Payment 179,374$ 79,877$

NOTE 9 PERSONNEL COMMITMENTS

Deferred Compensation Plan

The County offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all County employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency.


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NOTE 9 PERSONNEL COMMITMENTS (CONTINUED)

Deferred Compensation Plan (Continued)

Effective January 1, 1997, Federal legislation converted the Section 457 deferred compensation assets from County assets to employee assets. As a result of these changes, plan assets are no longer subject to the claims of the County’s general creditors. The County had previously reported the assets and associated liabilities of the deferred compensation plan in its financial statements as an agency fund. Effective with the change in legislation, these assets are no longer County assets and fiduciary responsibility has been transferred to the third party plan administrator. Consequently, these assets are no longer reported in the accompanying financial statements in compliance with Governmental Accounting Standards Board Statement No. 32. The County is obligated to make available to qualified retired employees the option to maintain coverage with the group health, life and dental insurance plans. Postemployment Health Care Benefits

Effective for the 2007 – 2008 fiscal year, Highlands County implemented Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pension, for certain postemployment health benefits provided by the County. The requirements of this Statement are being implemented prospectively, with the actuarially determined liability of $11,126,851 at the October 1, 2007 date of transition amortized over 30 years. Accordingly, for financial reporting purposes, no liability is reported for postemployment health care benefits liability at the date of transition. Plan Description – The Postemployment Health Care Benefits Plan is a single-employer defined benefit plan administered by the County. Pursuant to the provisions of Section 112.0801, Florida Statutes, former employees and eligible dependents who retire from the County may continue to participate in the County’s self-funded health and hospitalization plan for medical, prescription drug and dental coverage. The County subsidizes the premium rates paid by retirees by allowing them to participate in the plans at reduced or blended group (implicitly subsidized) premium rates for both active and retired employees. These rates provide an implicit subsidy for retirees because, on an actuarial basis, their current and future claims are expected to result in higher costs to the plan on average than those of active employees. Retirees are required to enroll in the Federal Medicare program for their primary coverage as soon as they are eligible. The plan does not issue a publicly available financial report.


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Postemployment Health Care Benefits (Continued)

Funding Policy – For the Postemployment Health Care Benefits Plan, contribution requirements of the County are established and may be amended through the County. The County has not advanced-funded or established a funding methodology for the annual Other Postemployment Benefit (OPEB) costs or the net OPEB obligation. As of October 1, 2009 there were 38 retirees and 23 eligible dependents receiving postemployment health care benefits. For the 2010-2011 fiscal year the County provided required contributions of $167,879 toward annual OPEB costs, comprised of benefit payments made on behalf of retirees for claims, retention costs, and net of retiree contributions totaling $360,581. Required contributions are based on projected pay-as-you-go financing. Annual OPEB Cost and Net OPEB Obligation – The following table shows the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and the changes in the County’s net OPEB obligation:

Fiscal YearEnding

September 30,2011

Normal Cost 712,814$ Amortization of Unfunded Accrued Liability 333,678 Interest 41,859 Annual Required Contribution 1,088,351 Interest on Net OPEB Obligation (NOO) 142,400 Amortization of NOO (127,145) Total Expense or Annual OPEB Cost (AOC) 1,103,606 Actual Credit/(Contribution) Toward OPEB Cost (167,879) Increase in NOO 935,727 NOO Beginning of Year 3,536,137 NOO End of Year 4,471,864$

The County’s historical annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation are as follows:

Percent ofAOC

Fiscal Year AOC Contribution Contribution NOO9/20/2009 1,489,298$ 100,031$ 6.7% 2,733,542$ 9/30/2010 1,030,727 228,132 22.1% 3,536,137 9/30/2011 1,103,607 167,879 15.2% 4,471,865


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Postemployment Health Care Benefits (Continued)

Funded Status and Funding Progress – As of September 30, 2011, the actuarial accrued liability for benefits was $9,033,802, and the actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability of $9,033,802. The covered payroll (annual payroll for active participating employees) was $33,032,550 for the 2010 – 2011 fiscal year, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 27.3%. Actuarial Methods and Assumptions – Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment and termination, mortality, and the healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projection of benefits for financial reporting purposes are based on the substantive plan provisions, as understood by the employer and participating members, and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and participating members. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The County’s OPEB actuarial valuation for the 2010 – 2011 fiscal year used the entry age normal cost actuarial method to estimate the unfunded actuarial liability and to determine the annual required contribution. Because the OPEB liability is currently unfunded, the actuarial assumptions included a 4% rate of return on invested assets, which is the County’s long-term expectation of investment returns. The actuarial assumptions also included a discount rate of 4%, payroll growth rate of 3.5% per year, and an annual healthcare cost trend rate of 9.5% initially for the 2010 – 2011 fiscal year, grading to 5.5% for the fiscal year ending September 30, 2017. The unfunded actuarial accrued liability and gains/losses are being amortized as a level percentage of projected payroll on a closed basis over 30 years.


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NOTE 10 LANDFILL CLOSURE AND POSTCLOSURE CARE COST

Highlands County has three landfill sites which are comprised of a total of 14 cells, four of which are currently in operation. State and Federal laws and regulations require the County to place a final cover on the four cells currently in use when they are closed and to perform maintenance and monitoring functions for all landfill sites for thirty years after closure. Landfill operations and landfill closure and postclosure care costs are accounted for in the Solid Waste Enterprise Fund. Although closure and postclosure care costs will be paid only near or after the date the landfill stops accepting waste, the County reports as a liability a portion of closure and postclosure care costs based on landfill capacity used as of the balance sheet date. The landfill closure and postclosure care liability of $6,323,738 at September 30, 2011 represents the cumulative amount reported to date based on an average use of 42% of the total estimated capacity. The portion of the liability related to 2011 usage is an increase of $202,132. It is estimated that an additional liability totaling $8,832,972 for Arbuckle Creek Cell 1A, 1B, Cell 3, Arbuckle Creek Cell C&D and Arbuckle Creek Cell AG will be recognized between the balance sheet date and the dates these cells will be filled to capacity in the years 2024, 2024, 2024, 2026 and 2099, respectively. Actual costs may differ due to inflation, changes in technology or changes in landfill laws and regulations. The County is required by State and Federal laws and regulations to make annual contributions to a landfill management escrow account to finance closure and postclosure care financial assurance requirements. The County is in compliance with these requirements at September 30, 2011 with cash and investments of $6,467,752 held for these purposes. The County expects that future inflation costs will be paid from future contributions and interest earnings on these contributions. In the event closure escrows and interest earnings prove inadequate due to higher than expected inflation, changes in technology or changes in laws or regulations, these costs may need to be financed by future landfill users or future tax revenue.

NOTE 11 MISCELLANEOUS REVENUE

Miscellaneous revenue included in the Governmental Funds for the fiscal year ended September 30, 2011 consists of the following:

County Government OtherTransportation Infrastructure Governmental

General Trust Surtax FundsReimbursements 625,378$ 1,298,333$ -$ -$ Insurance Surplus 3,079 - - - Prior Year Refund 885 - - - Tourist Development - - - 2,021 Commissions on Inmate Phone Calls - - - 172,262 Other 768,665 238,383 16,571 587,105

Total 1,398,007$ 1,536,716$ 16,571$ 761,388$


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NOTE 12 MAJOR CUSTOMERS

A significant amount of the Solid Waste Fund revenue for 2011 is derived from one major customer as follows: Percentage of Total Revenue

Choice Environmental Services 24% The Solid Waste Fund revenue is comprised of charges for services to residential and commercial customers and a special non-ad valorem assessment of $130 per property owner.

NOTE 13 CONTINGENT LIABILITIES

The County is currently receiving, and has received in the past, grants which are subject to special compliance audits by the grantor agency and which may result in disallowed expenditure/expense amounts. These amounts, if any, constitute a contingent liability of the County. Accordingly, such liabilities are not reflected within the financial statements. Management does not believe the effects of contingent liabilities, if any, will be material to the financial statements. The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of legal counsel for the County, the resolution of these matters will not have a materially adverse affect on the financial condition of the County.

NOTE 14 RISK MANAGEMENT

Risk Retention Fund

The County is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disaster. Between October 1, 1994 and March 31, 2009, the Board was a member of Public Risk Management (PRM), formerly known as Southwest Florida Intergovernmental Risk Management Association, a local government liability risk pool. PRM administers insurance activities relating to property; general, automobile and public officials' liability; workers' compensation; and auto physical damage. PRM absorbed losses up to a specified amount annually and purchased excess and other specific coverage from third-party carriers. Transactions related to activities between the Board and PRM are presented within the Risk Retention Internal Service Fund. All funds of the County participated in the program and made payments to the Risk Retention Fund. The reserve of $2,228,291 remains designated for possible future claims in the Risk Retention Fund at September 30, 2011.


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NOTE 14 RISK MANAGEMENT (CONTINUED)

Insurance Fund

Effective April 1, 2009, the County became a member of Preferred Governmental Insurance Trust (PGIT), a governmental insurance carrier. PGIT administers insurance activities relating to property, general liability, public official’s and employment practices liability, automobile, crime, and worker’s compensation. The County is liable for deductible on certain coverages. PGIT meets the GASB Statement No. 10 guidelines for governmental entity pools and provides audited financial statements annually. Transactions related to activities related to PGIT are presented within the Insurance Internal Service Fund. Employee Benefit Fund

On October 1, 1977, the County established the Employee Benefit Fund which was formerly an expendable trust fund. In 1989, the County transferred its assets, liabilities and fund equity to an internal service fund. This fund was created to self-insure County employees and their dependents for group medical costs. Medical claims are paid from premiums generated by employees’ dependents and contributions by the County. Premiums and contributions are determined by projected losses based on historical claims experience. Employee Benefit Fund (Continued)

Effective October 1, 2001, the County obtained private insurance and discontinued its self-insurance plan for health insurance; however, the County continued its self-insurance plan for dental costs. Dental claim liabilities are recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated, including an estimate for claims incurred but not reported. This estimate is based on historical experience and current trends and it is computed by an actuarial firm. The claims liability for estimated dental claims payable as of September 30, 2011 is $25,770. Dental claims are adjudicated by a third party administrator under contract. The following table shows the changes in aggregate liabilities for dental claims for the past two fiscal years:

Fiscal Beginning Incurred EndingYear Balance Claims Payments Balance2010 25,770$ 230,210$ 230,210$ 25,770$ 2011 25,770 198,905 198,905 25,770$


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NOTE 15 RETIREMENT PLAN

Substantially all full-time employees are participants in the Florida Retirement System (the System), a multiple-employer, cost-sharing public retirement system. The System, which is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of Retirement, covers approximately 655,367 full-time employees of various governmental units within the State of Florida. For employees enrolled prior to July 1, 2011, the System provides for vesting of benefits after 6 years of creditable service. Normal retirement benefits are available to regular employees who retire at or after age 62 with six (6) or more years of service. Early retirement is available after 6 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation and years of service credit where average compensation is computed as the average of an individual’s five (5) highest years of earnings. For employees enrolled in the System on or after July 1, 2011, vesting of benefits begins after 8 years of creditable service. Normal retirement benefits are available to these employees who retire at or after age 65 with eight (8) or more years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation and years of service credit where average compensation is computed as the average of an individual’s eight (8) highest years of earnings. Effective with the State fiscal year 2002, the State created a new retirement plan within the System: the Public Employee Optional Retirement Program (the “FRS Investment Plan”). Any regular member not in the Deferred Retirement Option Program (DROP) is eligible to participate in the RFS Investment Plan. Employer contributions are made to the FRS Investment Plan, which holds the contributions in individual investment accounts for each participating employee. The employee directs the investment funds available through the Plan. Investment accounts vest after one (1) year of service and may be withdrawn by the employee 90 days after termination or retirement from a participating employer in the System. Alternately, the funds may remain in the investment account until the employee reaches normal retirement age or some earlier date, at the employee’s choosing. The County has no responsibility to the System other than to make the periodic contributions required by state statutes. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the System. he report may be obtained by writing the Florida Division of Retirement, 2639 Monroe Street, Building C, Tallahassee, FL 32399-1560.


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NOTE 15 RETIREMENT PLAN (CONTINUED)

Participating employer contributions are based upon statewide rates established by the State of Florida. These rates, which include the health insurance subsidy contribution of 1.11% and the 0.03% administrative/educational fee, were applied to employee salaries as follows: regular employees, 10.77% and 9.85%; DROP employees, 12.25% and 10.91%; senior management, 14.57% and 13.12%; special risk, 23.25% and 20.92%; and elected officials, 18.64% and 16.53%; for the System years ended June 30, 2011 and 2010, respectively. Effective July 1, 2011, the rates were changed as follows: regular employees, 4.91%; DROP employees, 4.42%; senior management, 6.27%; special risk, 14.10%; and elected officials, 11.14%. In addition, all employees (except for those in DROP) were required to make contribution of 3% on a pretax basis, deductible from their gross salaries for each payroll beginning in July 2011. The County’s contributions made during the years ended September 30, 2011, 2010, and 2009 were $5,007,191 $5,359,852, and $5,415,238 respectively, equal to the actuarially determined contribution requirements for each year.

NOTE 16 FUND BALANCE DEFICIT

Special Revenue Funds

Sebring Hills Special Benefit District – The fund balance deficit of $7,665 resulted from expenditures exceeding assessment collections. The district’s assessment was increased for fiscal year 2010 – 2011 which reduced the deficit from prior years. Home Initiatives Partnership – The fund balance deficit of $56,372 resulted from expenditures being charged to the fund which had not been reported to the grantor agency for reimbursement. The County intends to draw down these funds from the State in fiscal year 2011-2012. Thunderbird Hill Waste Water – The fund balance deficit of $113,798 is a result of an arms length transaction loan that was initiated to pay the City of Sebring for improvements needed with the City taking over the Landmark Utility System. The $200,000 General Fund loan is to be paid back with the assessments collected from this district.


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NOTE 17 INTERFUND TRANSFERS

Transfers for the year ended September 30, 2011, consisted of the following: Transfers to the General Fund from:

Nonmajor Governmental Funds 55,037$

Transfers to the Local Government Infrastructure Surtax Fund from:Nonmajor Governmental Funds 1,349,826

Transfers to Nonmajor Governmental Funds from:General Fund 368,557 Local Government Infrastructure Surtax Fund 118,224 Nonmajor Governmental Funds 78,020

Total 564,801

Total Interfund Transfers 1,969,664$

Transfers are used to: 1) move revenues from the fund that state law requires to collect them to the fund that state law requires to expend them; 2) provide matching funds for grants; and 3) use unrestricted General Fund and other fund revenues to finance transportation or other activities which must be accounted for in another fund.

HIGHLANDS COUNTY, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION

MODIFIED APPROACH FOR INFRASTRUCTURE ASSETS YEAR ENDED SEPTEMBER 30, 2011

(94)

Condition Rating of Highlands County Roadway System

Overall Minimum Average Condition Level (Fair Condition 51 – 75)

FY 2009 FY 2010 FY 2011

Road System 54.50 56.63 58.26

Comparison of Estimated to Actual Maintenance/Preservation

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Budgeted 1,864,307$ 1,217,961$ 2,554,030$ 2,333,590$ 2,844,812$ Actual 1,455,532 1,133,093 1,915,998 1,512,499 2,504,051

The condition of a road segment is measured using the Road Evaluation Standards Version 1 (RES) that is based on weighted averages or distress factors of the pavement surface. The RES system uses a measurement scale to evaluate the Pavement Condition Level (PCL) ranging from zero for a failed pavement to 100 for pavement in perfect condition. The PCL index is used to classify road segments in good condition (76–100), fair condition (51-75), poor condition (26-50), and needs reconstruction (25 or below). An overall minimum average condition level is then determined from the individual road segments and the total lane miles of roads. It is the County’s policy to maintain the road system at an overall minimum average condition level not less than 45. Road segment condition is determined annually for all arterial roads and all of the local roads are inspected annually.

Condition Rating of Highlands County Bridge System

Overall Average Sufficiency Rating

FY 2009 FY 2010 FY 2011

Bridge System 76.94 76.90 84.85

Comparison of Estimated to Actual Maintenance/Preservation

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011Budgeted 150,000$ 137,200$ 150,000$ 150,000$ 150,000$ Actual 127,060 133,968 54,762 52,760 24,445

The condition of the County’s bridges is determined using the inspection program that follows state mandates and regulations. The bridge sufficiency rating is a weighted average of an assessment of the ability of individual components to meet necessary performance requirements and uses a numerical condition scale ranging from 0 to 100. It is the County’s policy to maintain an overall minimum average sufficiency rating for the County maintained bridges of not less than 60%.

HIGHLANDS COUNTY, FLORIDA REQUIRED SUPPLEMENTARY INFORMATION

POSTEMPLOYMENT BENEFITS OTHER THAN PENSION YEAR ENDED SEPTEMBER 30, 2011

(95)

Unfunded Unfunded

Actuarial Actuarial Actuarial Actuarial as a Percent

Valuation Value of Accrued Accrued Funded Covered of Covered

Date Assets Liability Liability Ratio Payroll Payroll

9/30/2009 -$ 13,905,850$ 13,905,850$ 0% 38,673,886$ 36.0%

9/30/2010 - 8,261,191 8,261,191 0% 35,432,809 23.3%

9/30/2011 - 9,033,802 9,033,802 0% 33,032,550 27.3%

Schedule of Funding Progress

HIGHLANDS COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL GENERAL FUND


(96)



REVENUESTaxes 33,890,955$ 33,890,955$ 34,915,497$ 1,024,542$ Licenses and Permits 23,000 23,000 17,690 (5,310) Intergovernmental 10,655,121 11,296,789 12,767,670 1,470,881 Charges for Services 5,166,875 5,166,875 5,804,315 637,440 Fines and Forfeitures 68,500 68,500 114,898 46,398 Net Change in Fair Value of Investments 217,000 217,009 170,519 (46,490) Miscellaneous 1,354,214 1,481,489 1,398,007 (83,482)

Total Revenues 51,375,665 52,144,617 55,188,596 3,043,979


General Government: Board of County Commissioners 348,965 350,339 287,640 62,699 County Administrator 481,765 479,821 425,806 54,015 Clerk to Board-Financial and Administration 2,533,066 2,657,054 2,526,751 130,303 County Audits-CPA 211,690 227,365 196,005 31,360 Office of Management and Budget 406,867 441,302 414,216 27,086 Human Resources 415,844 436,232 376,907 59,325 Non-Ad Valorem Assessments 103,089 103,532 60,440 43,092 Public Information 33,726 35,126 32,832 2,294 Central Services 1,063,003 1,576,832 1,463,420 113,412 Property Appraiser 2,795,133 2,813,104 2,541,103 272,001 Tax Collector 2,328,845 2,348,197 2,193,861 154,336 Supervisor of Elections 754,539 779,424 581,531 197,893 Purchasing 452,134 493,191 414,490 78,701 County Attorney 355,499 355,499 273,891 81,608 County Planning and Development 500,514 762,321 473,278 289,043 Clerk to Board - Other General Government Services 753,031 747,937 679,001 68,936 Facilities Management 2,078,394 2,259,380 1,824,373 435,007

Total General Government 15,616,104 16,866,656 14,765,545 2,101,111

Public Safety: Sheriff 14,451,008 15,510,544 15,052,108 458,436 Fire Department 78,000 79,781 74,047 5,734 County Fire Coordinator 572,105 574,464 498,686 75,778 Division of Forestry 35,935 35,935 35,179 756 County Jail Maintenance 707,446 803,105 752,663 50,442 Detention and Correction 8,964,035 9,066,815 8,711,502 355,313 Detention Medical 1,050,000 1,050,000 794,822 255,178 Law Enforcement Maintenance 115,000 115,000 104,321 10,679 Law Enforcement Other 484,530 - - - Zoning Department 652,993 661,483 525,979 135,504 Local Emergency Management Agency 424,651 591,283 358,012 233,271 Communications Program 383,772 343,680 292,113 51,567 Information Technology 80,715 80,985 71,702 9,283 Ambulance Services 5,526,590 5,595,538 4,950,464 645,074 Medical Examiner 236,372 246,372 245,709 663 Children's Advocacy Center 149,017 161,786 147,988 13,798

Total Public Safety 33,912,169 34,916,771 32,615,295 2,301,476

Budget


BUDGET AND ACTUAL GENERAL FUND (CONTINUED)


(97)




Physical Environment: County Extension 252,618 260,527 209,062 51,465 Natural Resources 1,473,216 1,563,216 1,039,482 523,734 Aquatic Plant Program 641,339 498,777 370,497 128,280 Nuisance Abatement 93,000 101,190 80,846 20,344

Total Physical Environment 2,460,173 2,423,710 1,699,887 723,823

Transportation: Avon Park Airport 22,281 22,281 22,281 - Avon Park Southside 31,401 31,401 31,351 50

Total Transportation 53,682 53,682 53,632 50

Economic Environment: Industrial Development Authority 266,002 266,002 266,002 - Community Redevelopment - Sebring 284,425 284,425 283,738 687 Community Redevelopment - Avon Park 94,715 94,715 92,820 1,895 Sebring Regional Airport/Industrial Park 352,882 352,882 350,947 1,935 Veteran Service Office 165,057 173,793 165,584 8,209 Community Housing Program 205,555 216,529 144,641 71,888

Total Economic Environment 1,368,636 1,388,346 1,303,732 84,614

Human Services: Health Care Responsibility Act 398,852 94,217 78,651 15,566 Health Unit 270,000 272,364 202,368 69,996 Animal Control 489,290 511,447 494,075 17,372 Mental Health 432,531 432,531 432,531 - Public Assistance Programs 123,417 129,678 117,825 11,853 State County Assistance Program 850,000 1,070,000 1,068,280 1,720 Human Services - Project Hope 32,500 32,500 32,500 - Children's Services Council 49,750 49,750 47,142 2,608 Transportation for Disadvantaged 59,972 59,972 51,626 8,346 Community Program Services 137,114 107,166 90,204 16,962 Healthy Families Grant 221,862 227,535 210,040 17,495

Total Human Services 3,065,288 2,987,160 2,825,242 161,918

Culture and Recreation: Library - Avon Park 185,617 176,269 151,657 24,612 Library - Sebring 296,049 440,077 277,489 162,588 Library - Lake Placid 179,745 180,684 150,729 29,955 Libraries - Countywide 274,564 230,970 214,619 16,351 Recreation Department 560,674 500,000 468,160 31,840 Parks Department 730,700 738,896 684,841 54,055 Parks Administration 157,089 165,229 163,510 1,719 Sports Complex 219,576 251,084 175,162 75,922 Historic District Site Survey 1,550 1,550 700 850 Heartland Library Cooperative 233,730 242,318 238,557 3,761

Total Culture and Recreation 2,839,294 2,927,077 2,525,424 401,653

Budget


BUDGET AND ACTUAL GENERAL FUND (CONTINUED)


(98)




Court Related: Court General Administration:

Circuit Court Administration 4,000 4,383 3,240 1,143 County Court Administration 2,350 2,350 1,234 1,116 State Attorney 15,700 17,025 4,198 12,827 Public Defender 4,950 4,950 2,965 1,985 Law Library 100,411 104,131 103,449 682 Circuit Court Criminal - Public Defender Conflicts 3,600 3,600 3,477 123

Circuit Court Juvenile:Circuit Court Juvenile Guardian Ad Litem 1,240 1,240 846 394

Court General Operations:General Operations Courthouse Security 1,032,802 1,037,852 958,951 78,901 General Operations Courthouse Facilities 280,939 311,496 252,640 58,856

Total Court Related 1,445,992 1,487,027 1,331,000 156,027

Debt Service:Principal Retirement 142,399 142,399 142,399 - Interest and Fiscal Charges 5,897 5,897 5,897 -


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (9,533,969) (11,054,108) (2,079,457) 8,974,651

OTHER FINANCING SOURCES (USES)Transfers In - - 55,037 55,037 Transfers Out (587,683) (694,947) (368,557) 326,390



Fund Balance, October 1, 2010 10,121,652 11,749,055 23,840,215 12,091,160

FUND BALANCE, SEPTEMBER 30, 2011 -$ -$ 21,447,238$ 21,447,238$

Budget

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

HIGHLANDS COUNTY, FLORIDA NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

(99)

Special Revenue Funds account for revenues from specific taxes or other earmarked revenue sources which, by law, are designated to finance particular functions or activities of government which include special benefit districts that account for the cost of street lighting, paving and maintaining streets, water control, fire protection, and recreation within certain benefit areas (districts) of the County. The purpose of the individual funds is depicted as follows: Lake Placid Sun-N-Lake Estates Fire - To account for assessments relating to fire protection. DeSoto City Special Benefit Fire - To account for assessments relating to fire protection. Orange Villa Special Benefit - To account for assessments relating to recreation and street lighting. Hickory Hills Special Benefit - To account for assessments relating to street maintenance and recreation. Placid Lakes Special Benefit - To account for assessments relating to maintenance of recreational areas, cleaning canals and fire protection, etc. Sebring County Estates Special Benefit - To account for assessments relating to street lighting. Istokpoga Marsh Watershed Improvement - To account for assessments relating to water control and improvements. Avon Park Estates Special Benefit - To account for assessments relating to street maintenance. Highlands Lakes Special Tax - To account for assessments relating to fire protection. Highlands Park Special Benefit Fire - To account for assessments relating to fire protection. Highlands Park Estates Improvement Trust - To account for funds available for street maintenance. Leisure Lakes Special Benefit Fire - To account for assessments relating to fire protection. Sebring Hills Special Benefit - To account for assessments relating to street lighting. Red Hill Farms Improvement - To account for assessments relating to constructing road and drainage facilities. E911 Emergency Operations - To account for the ongoing fiscal activity relating to the collection and use of the $.50 user fee for the E911 emergency telephone number system.


SPECIAL REVENUE FUNDS (CONTINUED)

(100)

Orange Blossom Estates Special Benefit - To account for assessments relating to constructing roads and drainage facilities. Sun-N-Lake Lake Placid Recreation - To account for assessments relating to recreation and street lighting. Conservation Trust - To account for assessments relating to land preservation. Intergovernmental Radio Communications - To account for the additional surcharge, up to $12.50 for each moving traffic violation, to assist in funding the County's participation in the intergovernmental radio communication program approved by the Division of the Department of General Services. Sebring Acres Special Benefit - To account for assessments relating to road construction, drainage and maintenance. Orange Blossom (Unit 12) Special Benefit - To account for assessments relating to road and rights-of-way maintenance. Lake Haven Estates Special Benefit - To account for assessments relating to street lighting. Legal Aid Program - To account for additional civil court fees collected to provide legal aid within the County to those in need. Lorida Special Benefit Fire District - To account for assessments relating to fire protection. Lake Placid Special Benefit Fire District - To account for assessments relating to fire protection. Law Enforcement Education - To account for a $2 court cost added to all fines and forfeitures. These monies can only be used for approved education and training of law enforcement, correctional and administrative personnel per s 318.18(11)(d) and s 938.15, FS. Building Code Enforcement Fund - To account for operations of the building department. Financing is provided primarily from building department permits and fees. Florida Boating Improvement - To account for the operation and maintenance of County boat ramps. Special Law Enforcement Trust - To account for the sale of confiscated property. These monies are used for the purchase of equipment and materials to be used in specialized law enforcement activities as well as to defray the cost of protracted or complex investigations. Highway Park Special Benefit District - To account for assessments relating to street maintenance.



(101)

Community Development Block Grant - To account for revenues and expenditures of community development block grant projects. Affordable Housing Assistance Trust – To account for the revenues and expenditures of the State Housing Initiatives Partnership which aids low income persons seeking housing loans. Sun-N-Lakes 1-20 Improvement Trust - To account for funds available for the construction of drainage and paved streets. Highlands Park Estates Special Benefit District - To account for assessments relating to facilities and improvements. Development Transportation Improvement - To account for grants-in-aid of construction for Wolf Creek Development and Vizcaya Lakes Development. West Sebring Special Benefit Fire District - To account for assessments relating to fire protection. Driver Education Safety Trust - To account for funds for driver education programs in schools of Highlands County per s 318.1215 FS. Tourist Development Trust - To account for the expenditure of tax revenues collected to promote and assist tourism in Highlands County, Florida. Domestic Violence Training - To account for a domestic violence surcharge used to defray the costs of incarcerating persons sentenced under s 938.08 FS and provide additional training to law enforcement personnel in combating domestic violence. Fire Inspection and Safety - To account for fees collected to be used for paying the cost of inspections conducted pursuant to s 633.081(1) FS and related administrative expenses and to account for fire safety enforcement fees and fire safety program fees collected and appropriated for these purposes. Venus Special Benefit Fire District - To account for assessments relating to fire protection. Sebring Parkway Maintenance - To account for the costs associated with the interlocal agreement (07/01/03) with the City of Sebring for maintenance of the Sebring Parkway. State Court Facilities Trust Fund - To account for the surcharge imposed per s 318.18(13) FS that shall be used to fund state court facilities. Innovations and Supplemental Courts Funding Trust Fund - To account for the additional court cost imposed by s 939.185 FS used to fund innovations to supplement state funding for the elements of the state court system identified in s 29.004 FS and county funding for local requirements under s 29.008(2)(a)2 FS. Crime Prevention - To account for the court cost imposed per s 775.083(2) FS for crime prevention programs in the county, including safe neighborhood programs.



(102)

Court Technology 28.24(12)(E)1 - To account for recording fees used to fund court related technology and court technology needs for the state trial courts, state attorney and public defender in the county. Court - To account for IV-D reimbursements, Child Support activity and bond estreature activity. Hurricane Housing Trust - To account for funds available through the Hurricane Housing Recovery Program under the State Housing Initiatives Partnership Act. Home Initiatives Partnership - To account for HUD funds to be used for housing rehabilitation, tenant based rental assistance, assistance to home buyers, acquisition of housing, and new construction of housing. Placid Lakes Fire District - To account for assessments for fire protection. Public Records Modernization Trust - To account for the additional service charges on recorded instruments for modernizing the official record keeping systems in the Clerk’s office per s 28.24(12)(d) FS. Teen Court Operations - To account for assessment of mandatory court costs for the operation and administration of the Highlands County Court Program per s 939.185 (1)(a)4 FS. Court Related Technology Modernization Trust - To account for the recording fees used to fund court related technology information needs for the Clerk of Courts. Court Operations Modernization Trust - To account for retainage of 10% of all court-related fines collected by the Clerk to be used exclusively for additional Clerk court-related operation needs and program enhancements. Court Services (120) - To account for state appropriated court related operations. Court Services (121) - To account for state appropriated court related operations. Community Donations - To account for public donations received by the Sheriff’s Office. Inmate Welfare Fund - To account for the commissary operated at the County jail. Revenues are provided by sales of products such as candy, cigarettes, toothpaste, etc., to the inmates. Profits from these sales can only be spent on educational and vocational training for the inmates. Affordable and Workforce Trust - To account for a permanent endowment and a continually renewable source of funds to meet, in part, the need for Affordable and Workforce Housing in the County pursuant to County Resolution no. 07-08-163 and Section 4.08 of the Highlands County Impact Fee Ordinance.



(103)

Impact Fee Transportation Avon Park - Pursuant to County Ordinance 05-06-44, transportation impact fees are collected by the County based on the transportation impact of new development. Impact Fee Transportation Lake Placid - Pursuant to County Ordinance 05-06-44, transportation impact fees are collected by the County based on the transportation impact of new development. Impact Fee Transportation Sebring - Pursuant to County Ordinance 05-06-44, transportation impact fees are collected by the County based on the transportation impact of new development.

Impact Fee Parks and Recreation Avon Park - Pursuant to County Ordinance 05-06-44, parks and recreation impact fees are collected by the County to provide growth-necessitated capital improvements in the area of parks and recreation. Impact Fee Parks and Recreation Lake Placid - Pursuant to County Ordinance 05-06-44, parks and recreation impact fees are collected by the County to provide growth-necessitated capital improvements in the area of parks and recreation. Impact Fee Parks and Recreation Sebring - Pursuant to County Ordinance 05-06-44, parks and recreation impact fees are collected by the County to provide growth-necessitated capital improvements in the area of parks and recreation. Impact Fee Correctional Facilities - Pursuant to County Ordinance 05-06-44, correctional facility impact fees are collected by the County to provide growth-necessitated capital improvements in the area of correctional facilities. Impact Fee Fire - Pursuant to County Ordinance 05-06-44, fire services impact fees are collected by the County to accommodate new development without decreasing the current level of fire services. Impact Fee Libraries - Pursuant to County Ordinance 05-06-44, library services impact fees are collected by the County to accommodate new development without decreasing the current level of library services. Impact Fee Law Enforcement - Pursuant to County Ordinance 05-06-44, law enforcement impact fees are collected by the County to provide growth-necessitated capital improvements in the area of law enforcement. Impact Fee Emergency Medical Services - Pursuant to County Ordinance 05-06-44, emergency medical services impact fees are collected by the County to provide growth-necessitated capital improvements in the area of emergency medical services. Thunderbird Hill Wastewater - To account for assessments relating to financing the upgrade, construction and operations of the wastewater infrastructure for the Thunderbird Hills area.



(104)

CAPITAL PROJECTS FUND

HCISSRB Construction - These funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities and infrastructure projects (other than those financed by proprietary funds).

HIGHLANDS COUNTY, FLORIDA COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2011

(105)

Lake Placid DeSoto Orange Hickory

Sun-N-Lake City Villa Hills

Estates Special Special Special

Fire Benefit Benefit Benefit

District Fire District District District

ASSETS

Cash and Cash Equivalents 258,819$ 77,396$ 3,292$ 16,704$

Investments - - - -

Accounts Receivable - Net - 860 - -

Due from Other Funds 1,192 1,162 9 16

Due from Other Governmental Units 688 62 - -

Prepaid Items - - - -

Total Assets 260,699$ 79,480$ 3,301$ 16,720$

LIABILITIES AND FUND BALANCES

Liabilities:

Vouchers Payable 7,503$ 5,867$ 134$ 86$

Contracts Payable-Retained Percentage - - - -

Due to Other Funds - - - -

Due to Other Governmental Units - - - -

Due to Others - - - -

Accrued Wages Payable 494 756 - -

Advances from Other Funds - - - -

Deferred Revenue - - - -

Total Liabilities 7,997 6,623 134 86

Fund Balances:

Nonspendable - - - -

Restricted 252,702 72,857 3,167 16,634

Unassigned - - - -

Total Fund Balances 252,702 72,857 3,167 16,634

Total Liabilities and Fund Balances 260,699$ 79,480$ 3,301$ 16,720$


(106)

Sebring Istokpoga Avon Highlands

Placid Country Marsh Park Highlands Park

Lakes Estates Watershed Estates Lakes Special

Special Special Improve- Special Special Benefit

Benefit Benefit ment Benefit Tax Fire

District District District District District District

459,229$ 58,884$ 597,185$ 852,800$ 270,279$ 131,240$

- - - - - -

22 - - - - -

1,110 129 476 604 1,388 314

4 - - - 397 28

- - - - - 52

460,365$ 59,013$ 597,661$ 853,404$ 272,064$ 131,634$

6,077$ 1,637$ 10,385$ 675$ 1,112$ 3,970$

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - 814 -

- - - - - -

- - - - - -

6,077 1,637 10,385 675 1,926 3,970

- - - - - 52

454,288 57,376 587,276 852,729 270,138 127,612

- - - - - -

454,288 57,376 587,276 852,729 270,138 127,664

460,365$ 59,013$ 597,661$ 853,404$ 272,064$ 131,634$


(Continued)


NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) SEPTEMBER 30, 2011

(107)

Highlands Leisure Red

Park Lakes Sebring Hill

Estates Special Hills Farms

Improve- Benefit Special Improve-

ment Fire Benefit ment

Trust District District District

ASSETS


Investments - - - -

Accounts Receivable - Net - - - -

Due from Other Funds - 867 173 40

Due from Other Governmental Units - 104 17 -


Total Assets 59,087$ 395,335$ 3,665$ 88,803$


Liabilities:

Vouchers Payable 493$ 6,874$ 1,739$ -$





Accrued Wages Payable - - - -

Advances from Other Funds - - 9,591 -


Total Liabilities 493 6,874 11,330 -

Fund Balances:


Restricted 58,594 388,461 - 88,803

Unassigned - - (7,665) -

Total Fund Balances 58,594 388,461 (7,665) 88,803



(108)

Orange

Blossom Intergov-

Estates Sun-N-Lake ernmental

E911 Special Lake Placid Radio

Emergency Benefit Recreation Conservation Communi-

Operations District District Trust cations

228,315$ 107,172$ 61,033$ 281,948$ 1$

- - - 910,405 -

- - - - -

101,210 - 411 - -

103,220 - 97 - 4,808

- - - - -

432,745$ 107,172$ 61,541$ 1,192,353$ 4,809$

-$ -$ 4,484$ -$ -$

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

296,362 - - 113,604 -

296,362 - 4,484 113,604 -

- - - - -

136,383 107,172 57,057 1,078,749 4,809

- - - - -

136,383 107,172 57,057 1,078,749 4,809

432,745$ 107,172$ 61,541$ 1,192,353$ 4,809$




(109)

Orange Lake

Sebring Blossom Haven Lorida

Acres (Unit 12) Estates Special

Special Special Special Legal Benefit

Benefit Benefit Benefit Aid Fire

District District District Program District

ASSETS

Cash and Cash Equivalents 117,231$ 7,975$ 28,660$ -$ 77,449$

Investments - - - - -

Accounts Receivable - Net - - - - -

Due from Other Funds 65 - 67 - 491

Due from Other Governmental Units - - - - -

Prepaid Items - - - - -

Total Assets 117,296$ 7,975$ 28,727$ -$ 77,940$


Liabilities:

Vouchers Payable 209$ -$ 773$ -$ 702$

Contracts Payable-Retained Percentage - - - - -

Due to Other Funds - - - - -

Due to Other Governmental Units - - - - -

Due to Others - - - - -

Accrued Wages Payable - - - - -

Advances from Other Funds - - - - -

Deferred Revenue - - - - -

Total Liabilities 209 - 773 - 702

Fund Balances:

Nonspendable - - - - -

Restricted 117,087 7,975 27,954 - 77,238

Unassigned - - - - -

Total Fund Balances 117,087 7,975 27,954 - 77,238

Total Liabilities and Fund Balances 117,296$ 7,975$ 28,727$ -$ 77,940$


(110)

Lake

Placid Highway

Special Special Park

Benefit Law Building Florida Law Special

Fire Enforcement Code Boating Enforcement Benefit

District Education Enforcement Improvement Trust District

356,137$ 104,466$ 541,201$ 120,191$ 349,037$ 30,701$

- - - - - -

- - - - - -

917 - - - - 49

56 2,567 - 2,714 - 22

- - - - - -

357,110$ 107,033$ 541,201$ 122,905$ 349,037$ 30,772$

655$ -$ 3,354$ 300$ -$ 512$

- - - - - -

- - - - - -

- - 7,046 - - -

- - - - - -

- - 4,950 - - -

- - - - - -

- - - - - -

655 - 15,350 300 - 512

- - - - - -

356,455 107,033 525,851 122,605 349,037 30,260

- - - - - -

356,455 107,033 525,851 122,605 349,037 30,260

357,110$ 107,033$ 541,201$ 122,905$ 349,037$ 30,772$




(111)

Community Highlands

Devel- Affordable Sun-N-Lake Park Estates

opment Housing 1 - 20 Special

Block Assistance Improvement Benefit

Grant Trust Trust District

ASSETS


Investments - - - -

Accounts Receivable - Net - 2 - -

Due from Other Funds - - - 385

Due from Other Governmental Units - - - 114


Total Assets 264,367$ 671,832$ 56,741$ 341,068$


Liabilities:

Vouchers Payable -$ 11,556$ -$ 695$

Contracts Payable-Retained Percentage 12,600 - - -



Due to Others - - - 200

Accrued Wages Payable - 222 - -


Deferred Revenue - 660,054 - -

Total Liabilities 12,600 671,832 - 895

Fund Balances:


Restricted 251,767 - 56,741 340,173

Unassigned - - - -

Total Fund Balances 251,767 - 56,741 340,173



(112)

West

Sebring Driver

Development Special Education Tourist Domestic Fire

Transportation Benefit Fire Safety Development Violence Inspection

Improvement District Trust Trust Training And Safety

84,701$ 637,965$ 31,796$ 552,326$ 46,987$ 75,816$

- - - - - -

- - - - - -

- 2,690 - - - -

- 132 2,811 26,364 230 -

- - - - - -

84,701$ 640,787$ 34,607$ 578,690$ 47,217$ 75,816$

-$ 6,265$ 24,841$ 12,725$ -$ -$

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - 1,242 - -

- - - - - -

- - - - - -

- 6,265 24,841 13,967 - -

- - - - - -

84,701 634,522 9,766 564,723 47,217 75,816

- - - - - -

84,701 634,522 9,766 564,723 47,217 75,816

84,701$ 640,787$ 34,607$ 578,690$ 47,217$ 75,816$




(113)

Venus Innovations and

Special Sebring State Court Supplemental

Benefit Parkway Facilities Courts Funding

Fire District Maintenance Trust Fund Trust Fund

ASSETS


Investments - - - -


Due from Other Funds 175 - - -

Due from Other Governmental Units - - 17,488 4,872


Total Assets 118,895$ 366,762$ 902,879$ 265,613$


Liabilities:

Vouchers Payable 615$ 4,364$ 1,396$ 3,638$





Accrued Wages Payable - - 287 -



Total Liabilities 615 4,364 1,683 3,638

Fund Balances:


Restricted 118,280 362,398 901,196 261,975

Unassigned - - - -




(114)

Hurricane Home Placid Lakes

Crime Court Tech Housing Initiatives Fire

Prevention 28.24(12)(E)1 Court Trust Partnership District

153,668$ 30,143$ 49,192$ 65$ -$ 113,146$

- - 25,304 - - -

- - - - - -

2,284 - - - - 624

2,011 8,024 12,131 - 13,777 4

- - - - - -

157,963$ 38,167$ 86,627$ 65$ 13,777$ 113,774$

-$ 34,665$ -$ -$ 67,264$ 1,188$

- - - - - -

- - - - 2,691 -

- - 416 - - -

- - 82,500 - - -

- 1,265 3,711 - 194 -

- - - - - -

- - - 65 - -

- 35,930 86,627 65 70,149 1,188

- - - - - -

157,963 2,237 - - - 112,586

- - - - (56,372) -

157,963 2,237 - - (56,372) 112,586

157,963$ 38,167$ 86,627$ 65$ 13,777$ 113,774$




(115)

Court

Public Related Court

Records Teen Technology Operations

Modernization Court Modernization Modernization

Trust Operations Trust Trust

ASSETS


Investments 80,698 - - 25,132


Due from Other Funds - - - -

Due from Other Governmental Units - - - -


Total Assets 195,129$ 24,494$ 61,998$ 123,070$


Liabilities:

Vouchers Payable -$ 177$ -$ -$





Accrued Wages Payable - 764 2,688 -



Total Liabilities - 941 2,688 -

Fund Balances:


Restricted 195,129 23,553 59,310 123,070

Unassigned - - - -




(116)

Affordable Impact Fee Impact Fee Impact Fee

Court Court and Trans- Trans- Trans-

Services Services Community Inmate Workforce portation portation portation

Fund (120) Fund (121) Donations Welfare Trust Avon Park Lake Placid Sebring

67,571$ -$ 3,285$ 208,815$ 432,443$ 238,843$ 422,292$ 48,895$

- - - - - - - -

- - - 20,871 - - - -

- - - - - - - -

- - - - - - - -

1,040 - - - - - - -

68,611$ -$ 3,285$ 229,686$ 432,443$ 238,843$ 422,292$ 48,895$

3,104$ -$ -$ 934$ -$ -$ -$ -$

- - - - - - - -

- - - - - - - -

734 - - - - - - -

- - - - - - - -

47,818 - - 657 - - - -

- - - - - - - -

16,955 - - - - - - -

68,611 - - 1,591 - - - -

1,040 - - - - - - -

- - 3,285 228,095 432,443 238,843 422,292 48,895

(1,040) - - - - - - -

- - 3,285 228,095 432,443 238,843 422,292 48,895

68,611$ -$ 3,285$ 229,686$ 432,443$ 238,843$ 422,292$ 48,895$




(117)

Impact Fee Impact Fee Impact Fee

Parks and Parks and Parks and Impact Fee

Recreation Recreation Recreation Correctional

Avon Park Lake Placid Sebring Facilities

ASSETS


Investments - - - -


Due from Other Funds - - - -

Due from Other Governmental Units - - - -


Total Assets 4,499$ 1,669$ 16,476$ 4,442$


Liabilities:

Vouchers Payable -$ -$ -$ -$





Accrued Wages Payable - - - -



Total Liabilities - - - -

Fund Balances:


Restricted 4,499 1,669 16,476 4,442

Unassigned - - - -




(118)

Capital Projects

Fund

Impact Fee Thunderbird Total All

Impact Fee Emergency Hill Nonmajor

Impact Fee Impact Fee Law Medical Waste HCISSRB Governmental

Fire Libraries Enforcement Services Water Construction Funds

4,701$ 36,273$ 1,302$ 1,007$ 80,343$ 3,956$ 12,299,633$

- - - - - - 1,041,539

- - - - - - 21,755

- - - - 113 - 116,961

- - - - - - 202,742

- - - - - - 1,092

4,701$ 36,273$ 1,302$ 1,007$ 80,456$ 3,956$ 13,683,722$

-$ -$ -$ -$ -$ 1,500$ 232,468$

- - - - - - 12,600

- - - - - - 2,691

- - - - - - 8,196

- - - - - - 82,700

- - - - - - 65,862

- - - - 194,254 - 203,845

- - - - - - 1,087,040

- - - - 194,254 1,500 1,695,402

- - - - - - 1,092

4,701 36,273 1,302 1,007 - 2,456 12,166,103

- - - - (113,798) - (178,875)

4,701 36,273 1,302 1,007 (113,798) 2,456 11,988,320

4,701$ 36,273$ 1,302$ 1,007$ 80,456$ 3,956$ 13,683,722$


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

NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2011

(119)

DeSotoLake Placid City Orange HickorySun-N-Lake Special Villa Hills

Estates Benefit Special SpecialFire Fire Benefit Benefit

District District District DistrictREVENUES

Taxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures - - - - Assessments 180,183 175,477 1,392 2,380 Net Change in Fair Value of Investments 486 244 8 34 Miscellaneous 1,200 10,168 - -

Total Revenues 181,869 185,889 1,400 2,414


General Government - - - - Public Safety 141,883 165,021 - - Physical Environment - - - - Transportation - - 1,728 1,236 Economic Environment - - - - Culture and Recreation - - - - Court Related - - - -

Debt Service:Principal Retirement - 46,667 - - Interest and Fiscal Charges - 3,020 - -

Total Expenditures 141,883 214,708 1,728 1,236

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 39,986 (28,819) (328) 1,178

OTHER FINANCING SOURCES (USES)Transfers In - - - - Transfers Out - - - -

Total Other Financing Sources (Uses) - - - -

NET CHANGE IN FUND BALANCE 39,986 (28,819) (328) 1,178

Fund Balances - October 1, 2010 212,716 101,676 3,495 15,456

FUND BALANCES - SEPTEMBER 30, 2011 252,702$ 72,857$ 3,167$ 16,634$


(120)

Sebring Istokpoga Avon Highlands Placid Country Marsh Park Highlands ParkLakes Estates Watershed Estates Lakes Special

Special Special Improve- Special Special BenefitBenefit Benefit ment Benefit Tax FireDistrict District District District District District

-$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - -

167,689 19,548 71,974 91,246 209,711 47,478 1,021 141 1,193 1,700 664 208

- - 30,074 - - - 168,710 19,689 103,241 92,946 210,375 47,686

- - - - - - - - - - 205,300 131,836 - - 57,621 - - -

169,313 21,473 - 34,061 - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - -

169,313 21,473 57,621 34,061 205,300 131,836

(603) (1,784) 45,620 58,885 5,075 (84,150)

- - - - - 4,446 - - - - - - - - - - - 4,446

(603) (1,784) 45,620 58,885 5,075 (79,704)

454,891 59,160 541,656 793,844 265,063 207,368

454,288$ 57,376$ 587,276$ 852,729$ 270,138$ 127,664$


(Continued)


NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

(121)

Highlands Leisure RedPark Lakes Sebring Hill

Estates Special Hills FarmsImprove- Benefit Special Improve-

ment Fire Benefit mentTrust District District District

REVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures - - - - Assessments - 130,967 26,090 6,284 Net Change in Fair Value of Investments 380 886 32 130 Miscellaneous - - - -

Total Revenues 380 131,853 26,122 6,414


General Government - - - - Public Safety - 390,133 - - Physical Environment - - - - Transportation 118,682 - 23,382 577 Economic Environment - - - - Culture and Recreation - - - - Court Related - - - -

Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - 200 -

Total Expenditures 118,682 390,133 23,582 577

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (118,302) (258,280) 2,540 5,837



NET CHANGE IN FUND BALANCE (118,302) (258,280) 2,540 5,837

Fund Balances - October 1, 2010 176,896 646,741 (10,205) 82,966

FUND BALANCES - SEPTEMBER 30, 2011 58,594$ 388,461$ (7,665)$ 88,803$


(122)

OrangeBlossomEstates Sun-N-Lake

E911 Special Lake Placid Conserva-Emergency Benefit Recreation tionOperations District District Trust

-$ -$ -$ -$ - - - - - - - 11,396

434,682 - - 6,450 - - - - - - 62,171 -

39 237 148 9,287 - - 3,581 -

434,721 237 65,900 27,133

- - - - 806,745 - - -

- - - 4,099 - 258 - - - - - - - - 44,009 - - - - -

- - 15,000 - - - 1,794 -

806,745 258 60,803 4,099

(372,024) (21) 5,097 23,034

189,971 - - - - - - -

189,971 - - -

(182,053) (21) 5,097 23,034

318,436 107,193 51,960 1,055,715

136,383$ 107,172$ 57,057$ 1,078,749$



(123)

Orange LakeIntergov- Sebring Blossom Haven ernmental Acres (Unit 12) Estates

Radio Special Special SpecialCommuni- Benefit Benefit Benefit

cations District District DistrictREVENUES

Taxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental (2,806) - - - Charges for Services 64,613 - - - Fines and Forfeitures - - - - Assessments - 9,886 - 10,042 Net Change in Fair Value of Investments - 255 18 45 Miscellaneous - - 1,497 -

Total Revenues 61,807 10,141 1,515 10,087


General Government - - - - Public Safety 207,768 - - - Physical Environment - - - - Transportation - 3,362 - 10,165 Economic Environment - - - - Culture and Recreation - - - - Court Related - - - -

Debt Service:Principal Retirement - - - - Interest and Fiscal Charges - - - -

Total Expenditures 207,768 3,362 - 10,165

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (145,961) 6,779 1,515 (78)

OTHER FINANCING SOURCES (USES)Transfers In 138,021 - - - Transfers Out - - - -

Total Other Financing Sources (Uses) 138,021 - - -

NET CHANGE IN FUND BALANCE (7,940) 6,779 1,515 (78)




(124)

LakeLorida Placid SpecialSpecial Special Building Florida Law

Legal Benefit Benefit Law Code Boating Enforce-Aid Fire Fire Enforcement Enforce- Improve- ment

Program District District Education ment ment Trust

-$ -$ -$ -$ -$ -$ -$ - - - - 537,743 - - - - - - - 36,466 - - - - 36,791 54,761 - - - - - - - - 26,497 - 74,174 138,435 - - - - 7 217 849 245 1,193 276 743 - 481 5,400 - 2,633 - - 7 74,872 144,684 37,036 596,330 36,742 27,240

- - - - - - - - 58,042 155,318 74,916 609,144 - 76,018 - - - - - - - - - - - - - - - - - - - - - - - - - - 43,900 - - - - - - - -

- 10,217 - - - - - - 3,394 - - - - - - 71,653 155,318 74,916 609,144 43,900 76,018

7 3,219 (10,634) (37,880) (12,814) (7,158) (48,778)

- - - - - - - (11,474) - - - - - - (11,474) - - - - - -

(11,467) 3,219 (10,634) (37,880) (12,814) (7,158) (48,778)

11,467 74,019 367,089 144,913 538,665 129,763 397,815

-$ 77,238$ 356,455$ 107,033$ 525,851$ 122,605$ 349,037$




(125)

Highway Park Community Affordable Sun-N-Lake

Special Development Housing 1 - 20Benefit Block Assistance ImprovementDistrict Grant Trust Trust

REVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - 635 404,575 - Charges for Services - - - - Fines and Forfeitures - - - - Assessments 7,384 - - - Net Change in Fair Value of Investments 47 564 - 72 Miscellaneous - - 193,200 -

Total Revenues 7,431 1,199 597,775 72


General Government - - - - Public Safety - - - - Physical Environment - - - - Transportation 6,838 - - - Economic Environment - - 597,775 - Culture and Recreation - - - - Court Related - - - -


Total Expenditures 6,838 - 597,775 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 593 1,199 - 72

OTHER FINANCING SOURCES (USES)Transfers In - 9,365 - - Transfers Out - - - -

Total Other Financing Sources (Uses) - 9,365 - -

NET CHANGE IN FUND BALANCE 593 10,564 - 72

Fund Balances - October 1, 2010 29,667 241,203 - 56,669

FUND BALANCES - SEPTEMBER 30, 2011 30,260$ 251,767$ -$ 56,741$


(126)

HighlandsPark West

Estates Sebring DriverSpecial Development Special Education Tourist Domestic FireBenefit Transportation Benefit Fire Safety Development Violence InspectionDistrict Improvement District Trust Trust Training And Safety

-$ -$ -$ -$ 289,442$ -$ -$ - - - - - - 584 - - - - - - - - - - 30,318 - 8,000 5,710 - -

58,301 - 406,520 - - - - 744 104 1,417 46 764 69 118

- - 5,864 - 2,084 - - 59,045 104 413,801 30,364 292,290 8,069 6,412

- - - - - - - - - 601,152 - - - 4,776 - - - - - - -

14,758 - - - - - - - - - 25,006 258,894 - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - -

14,758 - 601,152 25,006 258,894 - 4,776

44,287 104 (187,351) 5,358 33,396 8,069 1,636

- - - - - - - - - - - - - - - - - - - - -

44,287 104 (187,351) 5,358 33,396 8,069 1,636

295,886 84,597 821,873 4,408 531,327 39,148 74,180

340,173$ 84,701$ 634,522$ 9,766$ 564,723$ 47,217$ 75,816$




(127)

InnovationsVenus andSpecial SupplementalBenefit Sebring State Court Courts

Fire Parkway Facilities FundingDistrict Maintenance Trust Trust

REVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - 253,578 103,621 Fines and Forfeitures - - - - Assessments 26,454 - - - Net Change in Fair Value of Investments 183 670 1,459 611 Miscellaneous - - - -

Total Revenues 26,637 670 255,037 104,232


General Government - - - - Public Safety 14,126 - - - Physical Environment - - - - Transportation - 45,461 - - Economic Environment - - - - Culture and Recreation - - - - Court Related - - 93,037 43,477

Debt Service: Principal Retirement - - - - Interest and Fiscal Charges - - - -


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 12,511 (44,791) 162,000 60,755

OTHER FINANCING SOURCES (USES)Transfers In - 117,571 - 21,174 Transfers Out - - (25,504) (91,633)

Total Other Financing Sources (Uses) - 117,571 (25,504) (70,459)

NET CHANGE IN FUND BALANCE 12,511 72,780 136,496 (9,704)




(128)

PlacidHurricane Home Lakes

Crime Court Tech Housing Initiatives FirePrevention 28.24(12)(E)1 Court Trust Partnership District

-$ -$ -$ -$ -$ -$ - - - - - - - - 162,969 - 606,018 -

43,569 104,034 16,228 - - - - - - - - - - - - - - 94,226

290 237 484 27,763 - 335 - 10,000 68,446 - - -

43,859 114,271 248,127 27,763 606,018 94,561

- - - - - - 28,036 - - - - 92,211

- - - - - - - - - - - - - - - 27,763 662,947 - - - - - - - - 371,515 248,127 - - -

- - - - - 25,071 - - - - - 6,085

28,036 371,515 248,127 27,763 662,947 123,367

15,823 (257,244) - - (56,929) (28,806)

- 83,600 - - - - - - - - - - - 83,600 - - - -

15,823 (173,644) - - (56,929) (28,806)

142,140 175,881 - - 557 141,392

157,963$ 2,237$ -$ -$ (56,372)$ 112,586$




(129)

CourtPublic Related Court

Records Teen Technology OperationsModernization Court Modernization Modernization

Trust Operations Trust TrustREVENUES

Taxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services 35,531 29,378 98,794 113,169 Fines and Forfeitures - - - - Assessments - - - - Net Change in Fair Value of Investments 887 76 170 427 Miscellaneous - - - 723

Total Revenues 36,418 29,454 98,964 114,319


General Government 22,995 26,695 83,614 94,741 Public Safety - - - - Physical Environment - - - - Transportation - - - - Economic Environment - - - - Culture and Recreation - - - - Court Related - - - -



EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 13,423 2,759 15,350 19,578



NET CHANGE IN FUND BALANCE 13,423 2,759 15,350 19,578




(130)

Affordable Impact Fee Impact FeeCourt Court and Trans- Trans-

Services Services Community Inmate Workforce portation portationFund (120) Fund (121) Donations Welfare Trust Avon Park Lake Placid

-$ -$ -$ -$ -$ -$ -$ - - - - - - -

443,653 1,451,573 - - - - - - - - 34,536 - - - - - - - - - - - - - - - 50,137 - - - - - 784 345 491 - - 7,342 172,262 - - -

443,653 1,451,573 7,342 206,798 784 50,482 491

443,653 1,451,573 - - - - - - - 7,127 160,671 - - - - - - - - - - - - - - - 87 237 - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - -

443,653 1,451,573 7,127 160,671 - 87 237

- - 215 46,127 784 50,395 254

- - - - - - - - - - - - - - - - - - - - -

- - 215 46,127 784 50,395 254

- - 3,070 181,968 431,659 188,448 422,038

-$ -$ 3,285$ 228,095$ 432,443$ 238,843$ 422,292$




(131)

Impact Fee Impact Fee Impact Fee Impact FeeTrans- Parks and Parks and Parks and

portation Recreation Recreation RecreationSebring Avon Park Lake Placid Sebring

REVENUESTaxes -$ -$ -$ -$ Licenses and Permits - - - - Intergovernmental - - - - Charges for Services - - - - Fines and Forfeitures - - - - Assessments - - - - Net Change in Fair Value of Investments 265 11 16 22 Miscellaneous - - - -

Total Revenues 265 11 16 22


General Government - - - - Public Safety - - - - Physical Environment - - - - Transportation 571 - - - Economic Environment - - - - Culture and Recreation - 12 19 40 Court Related - - - -

Debt Service:Principal Retirement - - - - Interest and Fiscal Charges 996 - - -

Total Expenditures 1,567 12 19 40

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,302) (1) (3) (18)



NET CHANGE IN FUND BALANCE (1,302) (1) (3) (18)




(132)

Capital ProjectsFund

Impact Fee Thunderbird Total AllImpact Fee Impact Fee Emergency Hill NonmajorCorrectional Impact Fee Impact Fee Law Medical Waste HCISSRB Governmental

Facilities Fire Libraries Enforcement Services Water Construction Funds

-$ -$ -$ -$ -$ -$ -$ 289,442$ - - - - - - - 538,327 - - - - - - 300,000 3,414,479 - - - - - - - 1,473,763 - - - - - - - 26,497 - 4,053 - - 366 17,174 - 2,089,742

71 24 81 40 2 213 3,251 63,839 - - - - - - 246,431 761,386

71 4,077 81 40 368 17,387 549,682 8,657,475

- - - - - - - 2,123,271 96,892 57 - 29,695 4 - - 4,056,871

- - - - - 1,603 - 63,323 - - - - - - - 452,189 - - - - - - - 1,572,385 - - 25 - - - - 88,005 - - - - - - - 756,156

- - - - - - - 96,955 - - - - - 1,976 16,500 33,965

96,892 57 25 29,695 4 3,579 16,500 9,243,120

(96,821) 4,020 56 (29,655) 364 13,808 533,182 (585,645)

- - - - - - 653 564,801 - (4,446) - - - - (1,349,826) (1,482,883) - (4,446) - - - - (1,349,173) (918,082)

(96,821) (426) 56 (29,655) 364 13,808 (815,991) (1,503,727)

101,263 5,127 36,217 30,957 643 (127,606) 818,447 13,492,047

4,442$ 4,701$ 36,273$ 1,302$ 1,007$ (113,798)$ 2,456$ 11,988,320$



BUDGET AND ACTUAL LAKE PLACID SUN-N-LAKE ESTATES FIRE DISTRICT FUND


(133)



REVENUESAssessments 185,604$ 185,604$ 180,183$ (5,421)$ Net Change in Fair Value of Investments 500 500 486 (14) Miscellaneous - - 1,200 1,200

Total Revenues 186,104 186,104 181,869 (4,235)


Public Safety:Special Benefit Districts 199,813 201,353 141,883 59,470


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (13,709) (15,249) 39,986 (63,705)


FUND BALANCES - SEPTEMBER 30, 2011 -$ -$ 252,702$ 252,702$

Budget


BUDGET AND ACTUAL DESOTO CITY SPECIAL BENEFIT FIRE DISTRICT FUND


(134)



REVENUESAssessments 169,756$ 169,756$ 175,477$ 5,721$ Net Change in Fair Value of Investments 300 300 244 (56) Miscellaneous - 9,308 10,168 860

Total Revenues 170,056 179,364 185,889 6,525



Total Public Safety 166,814 176,905 165,021 11,884

Debt Service:Principal Retirement 13,333 48,333 46,667 1,666 Interest 2,115 4,115 3,020 1,095

Total Debt Service 15,448 52,448 49,687 2,761


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (12,206) (49,989) (28,819) 21,170



Budget


BUDGET AND ACTUAL ORANGE VILLA SPECIAL BENEFIT DISTRICT FUND


(135)



REVENUESAssessments 1,397$ 1,397$ 1,392$ (5)$ Net Change in Fair Value of Investments - - 8 8

Total Revenues 1,397 1,397 1,400 3


Transportation:Special Benefit Districts 1,834 1,834 1,728 106


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (437) (437) (328) 109

Fund Balances - October 1, 2010 437 437 3,495 3,058


Budget


BUDGET AND ACTUAL HICKORY HILLS SPECIAL BENEFIT DISTRICT FUND


(136)



REVENUESAssessments 2,377$ 2,377$ 2,380$ 3$ Net Change in Fair Value of Investments - - 34 34

Total Revenues 2,377 2,377 2,414 37


Transportation:Special Benefit Districts 2,377 2,377 1,236 1,141


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - 1,178 1,178

Fund Balances - October 1, 2010 - - 15,456 15,456


Budget


BUDGET AND ACTUAL PLACID LAKES SPECIAL BENEFIT DISTRICT FUND


(137)



REVENUESAssessments 166,336$ 166,336$ 167,689$ 1,353$ Net Change in Fair Value of Investments 1,200 1,200 1,021 (179)

Total Revenues 167,536 167,536 168,710 1,174




EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (159,572) (287,522) (603) 286,919



Budget


BUDGET AND ACTUAL SEBRING COUNTRY ESTATES SPECIAL BENEFIT DISTRICT FUND


(138)



REVENUESAssessments 19,445$ 19,445$ 19,548$ 103$ Net Change in Fair Value of Investments 275 275 141 (134)

Total Revenues 19,720 19,720 19,689 (31)







Budget


BUDGET AND ACTUAL ISTOKPOGA MARSH WATERSHED IMPROVEMENT DISTRICT FUND


(139)



REVENUESAssessments 74,737$ 74,737$ 71,974$ (2,763)$ Net Change in Fair Value of Investments 2,200 2,200 1,193 (1,007) Miscellaneous - - 30,074 30,074

Total Revenues 76,937 76,937 103,241 26,304


Physical Environment:Istokpoga Marsh Improvements 201,654 223,814 57,621 166,193





Budget


BUDGET AND ACTUAL AVON PARK ESTATES SPECIAL BENEFIT DISTRICT FUND


(140)



REVENUESAssessments 89,085$ 89,085$ 91,246$ 2,161$ Net Change in Fair Value of Investments 3,200 3,200 1,700 (1,500)

Total Revenues 92,285 92,285 92,946 661







Budget


BUDGET AND ACTUAL HIGHLANDS LAKES SPECIAL TAX DISTRICT FUND


(141)



REVENUESAssessments 205,438$ 205,438$ 209,711$ 4,273$ Net Change in Fair Value of Investments 660 660 664 4

Total Revenues 206,098 206,098 210,375 4,277


Public Safety:Special Benefit Districts 217,290 228,079 205,300 - 22,779





Budget


BUDGET AND ACTUAL HIGHLANDS PARK SPECIAL BENEFIT FIRE DISTRICT FUND


(142)



REVENUESAssessments 46,093$ 46,093$ 47,478$ 1,385$ Net Change in Fair Value of Investments 350 350 208 (142) Miscellaneous - - - -

Total Revenues 46,443 46,443 47,686 1,243





OTHER FINANCING USESTransfers In - - 4,446 4,446

Total Other Financing Sources - - 4,446 4,446

NET CHANGE IN FUND BALANCE (15,736) (98,908) (79,704) 19,204



Budget


BUDGET AND ACTUAL HIGHLANDS PARK ESTATES IMPROVEMENT TRUST FUND


(143)



REVENUESNet Change in Fair Value of Investments -$ -$ 380$ 380$

Total Revenues - - 380 380


Transportation:Improvement Trust 156,466 156,466 118,682 37,784





Budget


BUDGET AND ACTUAL LEISURE LAKES SPECIAL BENEFIT FIRE DISTRICT FUND


(144)



REVENUESAssessments 130,478$ 130,478$ 130,967$ 489$ Net Change in Fair Value of Investments 1,200 1,200 886 (314)

Total Revenues 131,678 131,678 131,853 175







Budget


BUDGET AND ACTUAL SEBRING HILLS SPECIAL BENEFIT DISTRICT FUND


(145)



REVENUESAssessments 13,472$ 24,672$ 26,090$ 1,418$ Net Change in Fair Value of Investments - - 32 32

Total Revenues 13,472 24,672 26,122 1,450



Debt Service:Interest - 200 200 -



Fund Balances - October 1, 2010 - - (10,205) (10,205)

FUND BALANCES - SEPTEMBER 30, 2011 -$ -$ (7,665)$ (7,665)$

Budget


BUDGET AND ACTUAL RED HILL FARMS IMPROVEMENT DISTRICT FUND


(146)



REVENUESAssessments 6,024$ 6,024$ 6,284$ 260$ Net Change in Fair Value of Investments 100 100 130 30

Total Revenues 6,124 6,124 6,414 290


Transportation:Special Benefit Districts 20,340 20,340 577 19,763

Total Expenditures 20,340 20,340 577 19,763




Budget


BUDGET AND ACTUAL E911 EMERGENCY OPERATIONS FUND


(147)



REVENUESIntergovernmental -$ 296,207$ -$ (296,207)$ Charges for Services 436,514 436,514 434,682 (1,832) Net Change in Fair Value of Investments - - 39 39

Total Revenues 436,514 732,721 434,721 (298,000)


Public Safety:E911 Operations 816,455 1,204,162 806,745 397,417

Total Expenditures 816,455 1,204,162 806,745 397,417


OTHER FINANCING SOURCESTransfers In 379,941 379,941 189,971 (189,970)

Total Other Financing Sources 379,941 379,941 189,971 (189,970)

NET CHANGE IN FUND BALANCE - (91,500) (182,053) (90,553)

Fund Balances - October 1, 2010 - 91,500 318,436 226,936


Budget


BUDGET AND ACTUAL ORANGE BLOSSOM ESTATES SPECIAL BENEFIT DISTRICT FUND


(148)



REVENUESNet Change in Fair Value of Investments 200$ 200$ 237$ 37$

Total Revenues 200 200 237 37


Transportation:Special Benefit Districts 21,484 89,230 258 88,972





Budget


BUDGET AND ACTUAL SUN-N-LAKE LAKE PLACID RECREATION DISTRICT FUND


(149)



REVENUESAssessments 65,402$ 65,402$ 62,171$ (3,231)$ Net Change in Fair Value of Investments 405 405 148 (257) Miscellaneous - 1,531 3,581 2,050

Total Revenues 65,807 67,338 65,900 (1,438)


Culture and Recreation:Special Benefit Districts 76,690 79,581 44,009 35,572

Total Culture and Recreation 76,690 79,581 44,009 35,572

Debt Service:Principal Retirement 15,000 15,000 15,000 - Interest 4,648 4,648 1,794 2,854






Budget


BUDGET AND ACTUAL CONSERVATRION TRUST FUND


(150)



REVENUESIntergovernmental - 405,000 11,396 (393,604) Charges for Services - - 6,450 6,450 Net Change in Fair Value of Investments - - 9,287 9,287

Total Revenues - 405,000 27,133 (377,867)


Physical Environment:Conservation and Resource Management 37,884 439,290 4,099 435,191



Fund Balances - October 1, 2010 37,884 34,290 1,055,715 1,021,425

FUND BALANCES - SEPTEMBER 30, 2011 -$ -$ 1,078,749$ 1,078,749$

Budget


BUDGET AND ACTUAL INTERGOVERNMENTAL RADIO COMMUNICATIONS FUND


(151)



REVENUESIntergovernmental -$ -$ (2,806)$ (2,806)$ Charges for Services 70,569 70,569 64,613 (5,956)

Total Revenues 70,569 70,569 61,807 (8,762)


Public Safety:Other Public Safety 215,911 222,597 207,768 14,829





NET CHANGE IN FUND BALANCE - (6,686) (7,940) (1,254)



Budget


BUDGET AND ACTUAL SEBRING ACRES SPECIAL BENEFIT DISTRICT FUND


(152)



REVENUESAssessments 9,500$ 9,500$ 9,886$ 386$ Net Change in Fair Value of Investments 360 360 255 (105)

Total Revenues 9,860 9,860 10,141 281

EXPENDITURES:Current:






Budget


BUDGET AND ACTUAL ORANGE BLOSOM (UNIT 12) SPECIAL BENEFIT DISTRICT FUND


(153)



REVENUESNet Change in Fair Value of Investments -$ -$ 18$ 18$ Miscellaneous - - 1,497 1,497

Total Revenues - - 1,515 1,515


Transportation:Special Benefit Districts 6,437 6,437 - 6,437



Fund Balances - October 1, 2010 6,437 6,437 6,460 23


Budget


BUDGET AND ACTUAL LAKE HAVEN ESTATES SPECIAL BENEFIT DISTRICT FUND


(154)



REVENUESAssessments 10,044$ 10,044$ 10,042$ (2)$ Net Change in Fair Value of Investments 40 40 45 5

Total Revenues 10,084 10,084 10,087 3







Budget


BUDGET AND ACTUAL LEGAL AID PROGRAM FUND


(155)





OTHER FINANCING USESTransfers Out - - (11,474) (11,474)

Total Other Financing Uses - - (11,474) (11,474)

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (11,467) (11,467)


FUND BALANCES - SEPTEMBER 30, 2011 -$ -$ -$ -$

Budget


BUDGET AND ACTUAL LORIDA SPECIAL BENEFIT FIRE DISTRICT FUND


(156)



REVENUESAssessments 73,420$ 73,420$ 74,174$ 754$ Net Change in Fair Value of Investments 200 200 217 17 Miscellaneous - - 481 481

Total Revenues 73,620 73,620 74,872 1,252




Debt Service:Principal Retirement 15,217 15,217 10,217 5,000 Interest 6,000 6,000 3,394 2,606






Budget


BUDGET AND ACTUAL LAKE PLACID SPECIAL BENEFIT FIRE DISTRICT FUND


(157)



REVENUESAssessments 133,898$ 133,898$ 138,435$ 4,537$ Net Change in Fair Value of Investments 1,000 1,000 849 (151) Miscellaneous - - 5,400 5,400

Total Revenues 134,898 134,898 144,684 9,786




EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (122,959) (124,565) (10,634) (94,359)



Budget


BUDGET AND ACTUAL LAW ENFORCEMENT EDUCATION FUND


(158)



REVENUESCharges for Services 35,350$ 35,350$ 36,791$ 1,441$ Net Change in Fair Value of Investments 400 400 245 (155)

Total Revenues 35,750 35,750 37,036 1,286


Public Safety:Sheriff 35,750 78,750 74,916 3,834


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (43,000) (37,880) 5,120



Budget


BUDGET AND ACTUAL BUILDING CODE ENFORCEMENT


(159)



REVENUESLicenses and Permits 405,000$ 410,500$ 537,743$ 127,243$ Charges for Services 51,000 51,000 54,761 3,761 Net Change in Fair Value of Investments - - 1,193 1,193 Miscellaneous - - 2,633 2,633

Total Revenues 456,000 461,500 596,330 134,830


Public Safety: Protective Inspections 723,215 753,356 609,144 144,212





Budget


BUDGET AND ACTUAL FLORIDA BOATING IMPROVEMENT FUND


(160)



REVENUESIntergovernmental 40,000$ 40,000$ 36,466$ (3,534)$ Net Change in Fair Value of Investments - - 276 276

Total Revenues 40,000 40,000 36,742 (3,258)


Culture and Recreation:Parks Department 48,000 48,000 43,900 4,100


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (8,000) (8,000) (7,158) 842



Budget


BUDGET AND ACTUAL SPECIAL LAW ENFORCEMENT TRUST FUND


(161)



REVENUESFines and Forfeitures -$ -$ 26,497$ 26,497$ Net Change in Fair Value of Investments - - 743 743



Public Safety:County Jail - 397,000 76,018 320,982

Total Expenditures - 397,000 76,018 320,982

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (397,000) (48,778) 348,222

Fund Balances - October 1, 2010 - 397,000 397,815 815


Budget


BUDGET AND ACTUAL HIGHWAY PARK SPECIAL BENEFIT DISTRICT FUND


(162)




Total Revenues 6,995 6,995 7,431 436




EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (20,910) (20,910) 593 21,503



Budget


BUDGET AND ACTUAL COMMUNITY DEVELOPMENT BLOCK GRANT FUND


(163)



REVENUESIntergovernmental -$ -$ 635$ 635$ Net Change in Fair Value of Investments - - 564 564



Economic Environment:Community Development Block Grant 678,846 - - -

Total Expenditures 678,846 - - -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (678,846) - 1,199 1,199

OTHER FINANCING SOURCES (USES)Transfers In - - 9,365 9,365 Transfers Out (10,000) - - -

Total Other Financing Sources (Uses) (10,000) - 9,365 9,365

NET CHANGE IN FUND BALANCE (688,846) - 10,564 10,564

Fund Balances - October 1, 2010 688,846 - 241,203 241,203


Budget


BUDGET AND ACTUAL AFFORDABLE HOUSING ASSISTANCE TRUST FUND


(164)



REVENUESIntergovernmental 434,351$ 412,540$ 404,575$ (7,965)$ Miscellaneous - - 193,200 193,200

Total Revenues 434,351 412,540 597,775 185,235


Economic Environment:State Housing Assistance Grant 434,351 1,125,698 597,775 527,923


EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - (713,158) - 713,158

Fund Balance - October 1, 2010 - 713,158 - (713,158)

FUND BALANCE - SEPTEMBER 30, 2011 -$ -$ -$ -$

Budget


BUDGET AND ACTUAL SUN N LAKE 1 - 20 IMPROVEMENT TRUST


(165)






Transportation:Special Benefit Districts 56,616 56,616 - 56,616





Budget


BUDGET AND ACTUAL HIGHLANDS PARK ESTATES SPECIAL BENEFIT DISTRICT FUND


(166)



REVENUESAssessments 62,255$ 62,255$ 58,301$ (3,954)$ Net Change in Fair Value of Investments 950 950 744 (206)

Total Revenues 63,205 63,205 59,045 (4,160)


Transportation:Improvement Trust 191,638 191,638 14,758 176,880





Budget


BUDGET AND ACTUAL DEVELOPMENT TRANSPORTATION IMPROVEMENT FUND


(167)






Transportation:Improvement Trust - - - -

Total Expenditures - - - -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - 104 104



Budget


BUDGET AND ACTUAL WEST SEBRING SPECIAL BENEFIT FIRE DISTRICT FUND


(168)



REVENUESAssessments 397,888$ 397,888$ 406,520$ 8,632$ Net Change in Fair Value of Investments 300 300 1,417 1,117 Miscellaneous - - 5,864 5,864

Total Revenues 398,188 398,188 413,801 15,613


Public Safety:Fire Control 418,123 769,021 601,152 167,869





Budget


BUDGET AND ACTUAL DRIVER EDUCATION SAFETY TRUST FUND


(169)



REVENUESCharges for Services 36,000$ 36,000$ 30,318$ (5,682)$ Net Change in Fair Value of Investments - - 46 46

Total Revenues 36,000 36,000 30,364 (5,636)


Economic Environment:Other Human Services 46,000 46,000 25,006 20,994



Fund Balances - October 1, 2010 10,000 10,000 4,408 (5,592)


Budget


BUDGET AND ACTUAL TOURIST DEVELOPMENT TRUST FUND


(170)



REVENUESTaxes 313,433$ 313,433$ 289,442$ (23,991)$ Net Change in Fair Value of Investments 384 384 764 380 Miscellaneous - - 2,084 2,084

Total Revenues 313,817 313,817 292,290 (21,527)


Economic Environment:Industry Development 313,817 441,721 258,894 182,827


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (127,904) 33,396 161,300

OTHER FINANCING USESTransfers Out - (40,000) - 40,000

Total Other Financing Uses - (40,000) - 40,000

NET CHANGE IN FUND BALANCE - (167,904) 33,396 201,300



Budget


BUDGET AND ACTUAL DOMESTIC VIOLENCE TRAINING FUND


(171)



REVENUESCharges for Services 5,972$ 5,972$ 8,000$ 2,028$ Net Change in Fair Value of Investments - - 69 69

Total Revenues 5,972 5,972 8,069 2,097


Public Safety:Sheriff 5,972 5,972 - 5,972





Budget


BUDGET AND ACTUAL FIRE INSPECTION AND SAFETY FUND


(172)



REVENUESLicenses and Permits 250$ 250$ 584$ 334$ Charges for Services 9,500 9,500 5,710 (3,790) Net Change in Fair Value of Investments - - 118 118

Total Revenues 9,750 9,750 6,412 (3,338)


Public Safety:Fire Control 9,750 9,750 4,776 4,974





Budget


BUDGET AND ACTUAL VENUS SPECIAL BENEFIT FIRE DISTRICT FUND


(173)




Total Revenues 25,893 25,893 26,637 744







Budget


BUDGET AND ACTUAL SEBRING PARKWAY MAINTENANCE FUND


(174)



REVENUESIntergovernmental 41,304$ 73,804$ -$ (73,804)$ Net Change in Fair Value of Investments - - 670 670

Total Revenues 41,304 73,804 670 (73,134)





OTHER FINANCING SOURCESTransfers In 117,571 117,571 117,571 -

Total Other Financing Sources 117,571 117,571 117,571 -




Budget


BUDGET AND ACTUAL STATE COURT FACILITIES TRUST FUND


(175)



REVENUESCharges for Services 281,300$ 281,300$ 253,578$ (27,722)$ Net Change in Fair Value of Investments 2,761 2,761 1,459 (1,302)

Total Revenues 284,061 284,061 255,037 (29,024)


Court Related:Operating Expenses 255,631 287,266 93,037 194,229


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 28,430 (3,205) 162,000 165,205

OTHER FINANCING USESTransfers Out (28,430) (28,430) (25,504) 2,926

Total Other Financing Uses (28,430) (28,430) (25,504) 2,926




Budget


BUDGET AND ACTUAL INNOVATIONS AND SUPPLEMENTAL COURTS FUNDING TRUST FUND


(176)



REVENUESCharges for Services 99,200$ 101,410$ 103,621$ 2,211$ Net Change in Fair Value of Investments 400 451 611 160

Total Revenues 99,600 101,861 104,232 2,371




EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 600 28,362 60,755 32,393

OTHER FINANCING SOURCES (USES)Transfers In 19,400 22,307 21,174 (1,133) Transfers Out (148,999) (179,677) (91,633) 88,044


NET CHANGE IN FUND BALANCE (128,999) (129,008) (9,704) 119,304



Budget


BUDGET AND ACTUAL CRIME PREVENTION FUND


(177)



REVENUESCharges for Services 30,184$ 30,184$ 43,569$ 13,385$ Net Change in Fair Value of Investments 136 136 290 154

Total Revenues 30,320 30,320 43,859 13,539


Public Safety:Operating Expenses 30,320 30,320 28,036 2,284





Budget


BUDGET AND ACTUAL COURT TECH 28.24(12)(E)1 FUND


(178)



REVENUESCharges for Services 120,000$ 120,000$ 104,034$ (15,966)$ Net Change in Fair Value of Investments - - 237 237 Miscellaneous - 10,000 10,000 -

Total Revenues 120,000 130,000 114,271 (15,729)







NET CHANGE IN FUND BALANCE (134,561) (138,073) (173,644) (35,571)



Budget


BUDGET AND ACTUAL HURRICANE HOUSING TRUST FUND YEAR ENDED SEPTEMBER 30, 2011

(179)



REVENUESIntergovernmental 94,241$ 27,806$ -$ (27,806)$ Net Change in Fair Value of Investments - 22 27,763 27,741

Total Revenues 94,241 27,828 27,763 (65)


Economic Environment:Operating Expenses 94,241 27,828 27,763 65


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - - -

Fund Balances - October 1, 2010 - - - -


Budget


BUDGET AND ACTUAL HOME INITIATIVES PARTNERSHIP FUND


(180)



REVENUESIntergovernmental 576,135$ 1,613,709$ 606,018$ (1,007,691)$

Total Revenues 576,135 1,613,709 606,018 (1,007,691)


Economic Environment:Operating Expenses 576,135 1,624,038 662,947 961,091


EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (10,329) (56,929) (46,600)

Fund Balances - October 1, 2010 - 10,329 557 (9,772)


Budget


BUDGET AND ACTUAL PLACID LAKES FIRE DISTRICT FUND YEAR ENDED SEPTEMBER 30, 2011

(181)



REVENUESAssessments 92,551$ 92,551$ 94,226$ 1,675$ Net Change in Fair Value of Investments 300 300 335 35

Total Revenues 92,851 92,851 94,561 1,710




Debt Service:Principal Retirement 25,072 25,072 25,071 1 Interest 6,086 6,086 6,085 1

Total Debt Service 31,158 31,158 31,156 2





Budget


BUDGET AND ACTUAL COURT SERVICES FUND (120)


(182)



REVENUESIntergovernmental 1,842,432$ 443,653$ 443,653$ -$

Total Revenues 1,842,432 443,653 443,653 -


General Government:Operating Expenses 1,842,432 443,653 443,653 -

Total Expenditures 1,842,432 443,653 443,653 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - - -



Budget


BUDGET AND ACTUAL COURT SERVICES FUND (121)


(183)



REVENUESIntergovernmental 1,862,581$ 1,451,573$ 1,451,573$ -$

Total Revenues 1,862,581 1,451,573 1,451,573 -


General Government:Operating Expenses 1,862,581 1,451,573 1,451,573 -

Total Expenditures 1,862,581 1,451,573 1,451,573 -

NET CHANGE IN FUND BALANCE - - - -



Budget


BUDGET AND ACTUAL AFFORDABLE AND WORKFORCE TRUST


(184)






Economic Environment:Operating Expenses 431,500 431,500 - 431,500





Budget


BUDGET AND ACTUAL IMPACT FEE - TRANSPORTATION - AVON PARK


(185)



REVENUESAssessments -$ -$ 50,137$ 50,137$ Net Change in Fair Value of Investments - - 345 345



Transportation:Impact Fees 188,326 181,227 87 181,140





Budget


BUDGET AND ACTUAL IMPACT FEE - TRANSPORTATION - LAKE PLACID


(186)






Transportation:Impact Fees 421,561 1,017 237 780

Total Expenditures 421,561 1,017 237 780




Budget


BUDGET AND ACTUAL IMPACT FEE - TRANSPORTATION - SEBRING


(187)






Transportation:Impact Fees 1,038,453 1,889 571 1,318

Debt Service:Interest - 1,000 996 4

Total Expenditures 1,038,453 2,889 1,567 1,322

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,038,453) (2,889) (1,302) 1,587

Fund Balances - October 1, 2010 1,038,453 2,889 50,197 47,308


Budget


BUDGET AND ACTUAL IMPACT FEE - PARKS AND RECREATION - AVON PARK


(188)






Culture and Recreation:Impact Fees 4,484 3,802 12 3,790





Budget


BUDGET AND ACTUAL IMPACT FEE - PARKS AND RECREATION - LAKE PLACID


(189)






Culture and Recreation:Impact Fees 34,340 127 19 108

Total Expenditures 34,340 127 19 108

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (34,340) (127) (3) 124

Fund Balances - October 1, 2010 34,340 127 1,672 1,545


Budget


BUDGET AND ACTUAL IMPACT FEE - PARKS AND RECREATION - SEBRING


(190)











Budget


BUDGET AND ACTUAL IMPACT FEE - CORRECTIONAL FACILITIES


(191)






Public Safety:Impact Fees 101,159 96,892 96,892 -

Total Expenditures 101,159 96,892 96,892 -




Budget


BUDGET AND ACTUAL IMPACT FEE – FIRE


(192)



REVENUESAssessments -$ 4,053$ 4,053$ -$ Net Change in Fair Value of Investments - 22 24 2

Total Revenues - 4,075 4,077 2


Public Safety:Impact Fees 5,067 57 57 -

Total Expenditures 5,067 57 57 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5,067) 4,018 4,020 2

OTHER FINANCING USESTransfers Out - (4,446) (4,446) -

Total Other Financing Uses - (4,446) (4,446) -

NET CHANGE IN FUND BALANCE (5,067) (428) (426) 2

Fund Balances - October 1, 2010 5,067 428 5,127 4,699


Budget


BUDGET AND ACTUAL IMPACT FEE - LIBRARIES


(193)











Budget


BUDGET AND ACTUAL IMPACT FEE - LAW ENFORCEMENT YEAR ENDED SEPTEMBER 30, 2011

(194)






Public Safety:Impact Fees 30,912 29,695 29,695 -

Total Expenditures 30,912 29,695 29,695 -




Budget


BUDGET AND ACTUAL IMPACT FEE - EMERGENCY MEDICAL SERVICES


(195)



REVENUESAssessments -$ -$ 366$ 366$ Net Change in Fair Value of Investments - - 2 2


EXPENDITURES:Current:

Public Safety:Impact Fees 639 52 4 48

Total Expenditures 639 52 4 48

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (639) (52) 364 416

Fund Balances - October 1, 2010 639 52 643 591


Budget


BUDGET AND ACTUAL THUNDERBIRD HILL WASTE WATER YEAR ENDED SEPTEMBER 30, 2011

(196)



REVENUESAssessments 17,247$ 17,247$ 17,174$ (73)$ Net Change in Fair Value of Investments - - 213 213

Total Revenues 17,247 17,247 17,387 140


Physical Environment:Operating Expenses 1,245 1,720 1,603 117

Total Physical Environment 1,245 1,720 1,603 117

Debt Service:Principal Retirement 16,002 13,551 - 13,551 Interest - 1,976 1,976 -




Fund Balances - October 1, 2010 - - (127,606) (127,606)


Budget


BUDGET AND ACTUAL HCISSRB CONSTRUCTION


(197)



REVENUESIntergovernmental -$ -$ 300,000$ 300,000$ Net Change in Fair Value of Investments - - 3,251 3,251 Miscellaneous - 964 246,431 245,467

Total Revenues - 964 549,682 548,718

EXPENDITURESDebt Service:

Interest - 19,800 16,500 3,300

Total Debt Service - 19,800 16,500 3,300

Total Expenditures - 19,800 16,500 3,300

DEFICIENCY OF REVENUES UNDER EXPENDITURES - (18,836) 533,182 552,018

OTHER FINANCING USESTransfers In - 653 653 - Transfers Out - (1,352,281) (1,349,826) 2,455

Total Other Financing Uses - (1,351,628) (1,349,173) 2,455

NET CHANGE IN FUND BALANCE - (1,370,464) (815,991) 554,473

Fund Balances - October 1, 2010 - 1,370,464 818,447 (552,017)


Budget

HIGHLANDS COUNTY, FLORIDA NONMAJOR ENTERPRISE FUNDS

(198)

Enterprise funds account for activities for which a fee is charged to external users for goods or services. The purpose of the individual nonmajor funds is depicted as follows: Highway Park Utility - To account for the water and sewer services provided by the County to Highway Park in Lake Placid. Water and Sewer - To account for the facilities and administration relating to residential and commercial sewer and water services provided to residents of Lake Placid, including debt service payments on the water utilities system long-term debt and to further construct and expand the system.

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF NET ASSETS

NONMAJOR ENTERPRISE FUNDS SEPTEMBER 30, 2011

(199)

Highway Water andPark Utility Sewer Total

ASSETSCurrent Assets:

Cash and Cash Equivalents 258,640$ 324,570$ 583,210$ Accounts Receivable - Net 17,358 3,901 21,259

Total Current Assets 275,998 328,471 604,469

Noncurrent Assets:Restricted Cash and Cash Equivalents 16,120 100,608 116,728

Total Restricted Assets 16,120 100,608 116,728

Capital Assets: (Net of Accumulated Depreciation) 1,068,103 1,924,451 2,992,554

Total Noncurrent Assets 1,084,223 2,025,059 3,109,282

Total Assets 1,360,221 2,353,530 3,713,751


Vouchers Payable 2,326 12,508 14,834 Due to Other Funds 5,784 27,463 33,247 Accrued Interest Payable - 4,791 4,791 Accrued Wages Payable 301 1,598 1,899 Deferred Revenue 501 9,907 10,408 Compensated Absences - Current Portion 301 1,703 2,004 Note Payable and Capital Leases - Current Portion - 113,812 113,812

Total Current Liabilities 9,213 171,782 180,995

Long-Term Liabilities:Payable from Restricted Assets - Customer Deposits 16,120 57,849 73,969 Compensated Absences Payable 2,709 15,325 18,034 Advances from Other Funds - - - Notes Payable and Capital Leases - 241,758 241,758 Other Post-Employment Benefits - 24,417 24,417

Total Long-Term Liabilities 18,829 339,349 358,178

Total Liabilities 28,042 511,131 539,173

Net Assets:Invested in Capital Assets, Net of Related Debt 1,068,103 1,568,881 2,636,984 Restricted for Debt Service - 42,759 42,759 Unrestricted 264,076 230,759 494,835

Total Net Assets 1,332,179$ 1,842,399$ 3,174,578$

Enterprise Funds

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS

NONMAJOR ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 2011

(200)


OPERATING REVENUESCharges for Services 124,132$ 551,770$ 675,902$ Miscellaneous 617 2,438 3,055

Total Operating Revenues 124,749 554,208 678,957

OPERATING EXPENSESPersonal Services 29,419 145,600 175,019 General and Administrative 69,566 227,521 297,087 Depreciation 41,731 111,778 153,509

Total Operating Expenses 140,716 484,899 625,615

Operating Income (Loss) (15,967) 69,309 53,342

NONOPERATING REVENUES (EXPENSES)Net Change in Fair Value of Investments 437 714 1,151 Water Impact Fees 750 12,709 13,459 Interest Expense - (16,214) (16,214)

Total Nonoperating Revenues (Expenses), Net 1,187 (2,791) (1,604)

CHANGE IN NET ASSETS (14,780) 66,518 51,738

Net Assets, October 1, 2010 1,346,959 1,775,881 3,122,840

TOTAL NET ASSETS, SEPTEMBER 30, 2011 1,332,179$ 1,842,399$ 3,174,578$

Enterprise Funds

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF CASH FLOWS

NONMAJOR ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 2011

(201)


CASH FLOWS FROM OPERATING ACTIVITIESCash Received from Customers 119,018$ 555,713$ 674,731$ Cash Payments for Personal Services (31,609) (155,191) (186,800) Cash Payments to Vendors (71,360) (236,587) (307,947) Customer Deposits (249) 564 315

Net Cash Provided by Operating Activities 15,800 164,499 180,299

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Impact Fees Received 750 12,709 13,459 Net Cash Provided by Noncapital Financing Activities 750 12,709 13,459

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Principal Payments on Borrowings - (109,348) (109,348) Interest Payments on Borrowings - (17,687) (17,687)

Net Cash Used by Capital and Related Financing Activities - (127,035) (127,035)

CASH FLOWS FROM INVESTING ACTIVITIESNet Investment Income (Loss) 437 714 1,151

Net Cash Provided by Investing Activities 437 714 1,151

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 16,987 50,887 67,874

Cash and Cash Equivalents - October 1, 2010 257,773 374,291 632,064

CASH AND CASH EQUIVALENTS - SEPTEMBER 30, 2011 274,760$ 425,178$ 699,938$

Enterprise Funds


NONMAJOR ENTERPRISE FUNDS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

(202)


RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating Income (Loss) (15,967)$ 69,309$ 53,342$ Adjustments To Reconcile Operating Income (Loss) to Net Cash Used By Operating Activities:

Depreciation 41,731 111,778 153,509 Changes in Assets and Liabilities:

(Increase) Decrease in Accounts Receivable (5,413) 1,898 (3,515) Increase (Decrease) in Vouchers Payable (1,820) (7,590) (9,410) Increase (Decrease) in Due to Other Funds 26 (1,476) (1,450) Increase (Decrease) in Accrued Wages Payable (843) (4,681) (5,524) Increase (Decrease) in Compensated Absences (1,347) (8,935) (10,282) Increase (Decrease) in Deferred Revenues (318) (393) (711) Increase (Decrease) in Customer Deposits (249) 564 315 Increase (Decrease) in Other Postemployment Benefits - 4,025 4,025

Total Adjustments 31,767 95,190 126,957

Net Cash Used by Operating Activities 15,800$ 164,499$ 180,299$

RECONCILIATION OF ENTERPRISE FUND CASH AND CASH EQUIVALENTS TO COMBINING BALANCE SHEET CASH AND CASH EQUIVALENTS

Cash and Temporary Investments 274,760$ 425,178$ 699,938$ Less: Restricted Cash and Investments 16,120 100,608 116,728

Total Unrestricted Cash and Cash Equivalents 258,640$ 324,570$ 583,210$

Enterprise Funds

HIGHLANDS COUNTY, FLORIDA INTERNAL SERVICE FUNDS

(203)

The Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the Board and to other governmental units on a cost reimbursement basis. The Board maintains the following Internal Service Funds: Risk Retention - To account for possible future claims related to the previous self-insurance of the general liability, property and workers’ compensation needs of County departments and elected officials. Employee Benefit - To account for employer, employee and retiree contributions to the County's dental plan and the payment of dental expenses. Insurance - To account for activity related to property, general liability, public officials and employment practices liability, automobile, crime and worker’s compensation needs of County departments and elected officials. Compensated Absences - To account for accumulated annual and sick leave which will be paid to employees upon termination of employment.

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF NET ASSETS

INTERNAL SERVICE FUNDS SEPTEMBER 30, 2011

(204)

Risk Employee CompensatedRetention Benefit Insurance Absences

Fund Fund Fund Fund TotalASSETS

Current Assets:Cash and Cash Equivalents 2,228,291$ 421,404$ 351,510$ 4,431,967$ 7,433,172$ Investments - - - 173,564 173,564 Accounts Receivable - 349 - - 349 Due from Other Governmental Units - 172 - - 172

Total Assets 2,228,291 421,925 351,510 4,605,531 7,607,257


Vouchers Payable - 10,240 - 133 10,373 Claims Payable - 25,770 118 - 25,888 Deferred Revenues - - - - -

Total Current Liabilities - 36,010 118 133 36,261

Noncurrent Liabilities:Compensated Absences - - - 4,605,398 4,605,398

Total Liabilities - 36,010 118 4,605,531 4,641,659

NET ASSETSUnrestricted 2,228,291 385,915 351,392 - 2,965,598

Total Net Assets 2,228,291$ 385,915$ 351,392$ -$ 2,965,598$

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

INTERNAL SERVICE FUNDS YEAR ENDED SEPTEMBER 30, 2011

(205)

Risk Employee CompensatedRetention Benefit Insurance Absences

Fund Fund Fund Fund TotalOPERATING REVENUES

Miscellaneous Income -$ 228,403$ 1,299,854$ 483,798$ 2,012,055$ Other Miscellaneous Income - - - - -

Total Operating Revenues - 228,403 1,299,854 483,798 2,012,055

OPERATING EXPENSESGeneral and Administrative - 26,086 - 498,825 524,911 Insurance and Claims - 198,905 1,239,012 - 1,437,917

Total Operating Expenses - 224,991 1,239,012 498,825 1,962,828

Operating Income (Loss) - 3,412 60,842 (15,027) 49,227

NONOPERATING REVENUES (EXPENSES)

Net Change in Fair Value of Investments 4,465 941 - 15,027 20,433 Total Nonoperating Revenues (Expenses) 4,465 941 - 15,027 20,433

CHANGE IN NET ASSETS 4,465 4,353 60,842 - 69,660

Net Assets, October 1, 2010 2,223,826 381,562 290,550 - 2,895,938

NET ASSETS, SEPTEMBER 30, 2011 2,228,291$ 385,915$ 351,392$ -$ 2,965,598$


INTERNAL SERVICE FUNDS SEPTEMBER 30, 2011

(206)

Risk EmployeeRetention Benefit

Fund FundCASH FLOWS FROM OPERATING ACTIVITIES

Cash Received from Customers -$ 227,042$ Cash Paid to Suppliers for Goods and Services - (228,065) Cash Paid to Employees for Services - -

Net Cash Provided (Used) by Operating Activities - (1,023)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Investments - - Sale of Investments - - Net Investment Income (Loss) 4,465 941

Net Cash Provided (Used) by Investing Activities 4,465 941

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,465 (82)

Cash and Cash Equivalents - October 1, 2010 2,223,826 421,486

CASH AND CASH EQUIVALENTS - SEPTEMBER 30, 2011 2,228,291$ 421,404$

RECONCILIATION OF NET OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES

Operating Income (Loss) -$ 3,412$ Adjustments To Reconcile Operating Income to Net Cash Provided (Used) By Operating Activities:

Changes in Assets and Liabilities:(Increase) Decrease in Accounts Receivable - (199) (Increase) Decrease in Due from Other Governmental Units - (71) Increase (Decrease) in Vouchers Payable - (3,074) Increase (Decrease) in Compensated Absences - - Increase (Decrease) in Deferred Revenues - (1,091)

Total Adjustments - (4,435)

Net Cash Provided (Used) by Operating Activities -$ (1,023)$

(207)

CompensatedInsurance Absences

Fund Fund Total

1,301,062$ 483,228$ 2,011,332$ (1,238,894) - (1,466,959)

- (786,878) (786,878) 62,168 (303,650) (242,505)

- (70,826) (70,826) - 20,613 20,613 - 4,255 9,661 - (45,958) (40,552)

62,168 (349,608) (283,057)

289,342 4,781,575 7,716,229

351,510$ 4,431,967$ 7,433,172$

60,842$ (15,027)$ 49,227$

1,208 - 1,009 - - (71)

118 133 (2,823) - (288,756) (288,756) - - (1,091)

1,326 (288,623) (291,732)

62,168$ (303,650)$ (242,505)$

HIGHLANDS COUNTY, FLORIDA TRUST AND AGENCY FUNDS

(FIDUCIARY FUNDS)

(208)

These funds account for assets held by the County in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. The County maintains the following Fiduciary Funds:

Agency Funds: Sheriff's Inmates - To account for monies collected from inmates who have money in their possession at the time of their arrest and subsequent incarceration. Sheriff's Cash Bonds - To account for cash appearance bonds. These funds are maintained until disposition is ordered by the court. Sheriff’s Unclaimed Evidence - To account for monies seized by law enforcement. These funds are maintained until final determination by the court. Sheriff's Individual Depositors - To account for fees charged to serve civil process. Fees are collected and held until service is complete and then remitted to other governmental agencies. Sheriff's Suspense - To account for fees and court ordered payments collected for various agencies. These funds are remitted to the County or other governmental agencies. Tax Collector's Tag Agency - Used by the Collector to account for motor vehicle and vessel registrations and title transfer fees remitted to the State of Florida. Tax Collector's Tax and License - Used by the Collector to account for the collection of ad valorem and non-ad valorem taxes, tangible personal property taxes, occupational licenses, and hunting and fishing licenses remitted to various taxing agencies and the State of Florida. Tax Collector's Tax Redemption - Used by the Collector to account for the collection of redeemed tax certificates issued in connection with delinquent ad valorem taxes and remittance to the certificate holders. Tax Collector's Special Payroll - Used by the Collector to account for payroll deductions withheld from the Collector's employees for remittance to other governmental agencies and benefits paid on behalf of employees by the Collector. Clerk's Child Support - To account for child support and/or alimony payments collected by the Clerk and remitted to the appropriate recipients.

HIGHLANDS COUNTY, FLORIDA TRUST AND AGENCY FUNDS (CONTINUED)

(FIDUCIARY FUNDS)

(209)

Clerk's Suspense - To account for amounts collected through various court, recording and tax deed application transactions that are to be remitted to other governmental agencies, businesses, and individuals. Board’s Agency Escrow - To account for the collection of funds held in escrow by the Board. Board's Tax Deed Surplus - To account for funds paid in excess of the delinquent taxes, fees and other costs due on real property sold through the tax deed process. These funds are held for two years in accordance with the provisions of Section 197.582, Florida Statutes, and, unless claimed by the original property owner, they are transferred to the General Fund and become property of the County. Board's Hospital District Pass Thru - To account for the transfer of funds between the Board of County Commissioners and the Highlands County Hospital District. Funds are required to be used exclusively for health services in Highlands County.

HIGHLANDS COUNTY, FLORIDA COMBINING STATEMENT OF FIDUCIARY NET ASSETS

AGENCY FUNDS SEPTEMBER 30, 2011

(210)

Sheriff's Sheriff's TaxSheriff's Sheriff's Unclaimed Individual Sheriff's Collector'sInmates Cash Bonds Evidence Depositors Suspense Tag Agency

ASSETSCash and Cash Equivalents 25,586$ 1,250$ 55,040$ 23,692$ 5,410$ 227,809$ Investments - - - - - - Accounts Receivable-Net 5,077 - - - - 2,377 Due from Other Governmental Units - - - - 379 -

Total Assets 30,663$ 1,250$ 55,040$ 23,692$ 5,789$ 230,186$

LIABILITIESVouchers Payable 1,957$ -$ -$ -$ 227$ -$ Due to Other Governmental Units 10,337 - - - 5,562 229,627 Due to Others 18,369 - 55,040 23,692 - 559 Deposits - 1,250 - - - - Tax Deed Surplus - - - - - -

Total Liabilities 30,663$ 1,250$ 55,040$ 23,692$ 5,789$ 230,186$

(211)

Tax Tax Tax Board's Collector's Collector's Collector's Clerk's Board's Board's HospitalTax and Tax Special Child Clerk's Agency Tax Deed DistrictLicense Redemption Payroll Support Suspense Escrow Surplus Pass Thru Total

1,181,605$ 61,003$ -$ 1,465$ 836,175$ 29,700$ 96,198$ -$ 2,544,933$ - - - - 232,814 - - - 232,814 - - - - 742 - - - 8,196 - - - - 1,165 - - 30,207 31,751

1,181,605$ 61,003$ -$ 1,465$ 1,070,896$ 29,700$ 96,198$ 30,207$ 2,817,694$

-$ -$ -$ -$ 5,702$ -$ -$ -$ 7,886$ 1,178,965 - - - 391,484 - - - 1,815,975

2,640 61,003 - 1,465 122,998 29,700 - 30,207 345,673 - - - - 550,712 - - - 551,962 - - - - - - 96,198 - 96,198

1,181,605$ 61,003$ -$ 1,465$ 1,070,896$ 29,700$ 96,198$ 30,207$ 2,817,694$

HIGHLANDS COUNTY, FLORIDA SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS YEAR ENDED SEPTEMBER 30, 2011

(212)

Balance BalanceOctober 1, September 30,

2010 Additions Deductions 2011

SHERIFF'S INMATESASSETS

Cash and Cash Equivalents 9,925$ 436,708$ 421,047$ 25,586$ Accounts Receivable-Net 3,585 6,503 5,011 5,077

Total Assets 13,510$ 443,211$ 426,058$ 30,663$

LIABILITIESVouchers Payable -$ 1,957$ -$ 1,957$ Due to Other Governmental Units 10,397 1,176 1,236 10,337 Due to Others 3,113 439,162 423,906 18,369

Total Liabilities 13,510$ 442,295$ 425,142$ 30,663$

SHERIFF'S CASH BONDSASSETS


LIABILITIESVouchers Payable -$ 455,243$ 455,243$ -$ Deposits 188,250 268,493 455,493 1,250


SHERIFF'S UNCLAIMED EVIDENCEASSETS


LIABILITIESDue to Others 51,033$ 42,772$ 38,765$ 55,040$

SHERIFF'S INDIVIDUAL DEPOSITORSASSETS


LIABILITIESVouchers Payable -$ 149,146$ 149,146$ -$ Due to Others 3,976 176,042 156,326 23,692



AGENCY FUNDS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

(213)



SHERIFF'S SUSPENSEASSETS

Cash and Cash Equivalents 2,437$ 244,538$ 241,565$ 5,410$ Accounts Receivable-Net 19,569 - 19,569 - Due from Other Governmental Units 606 3,373 3,600 379

Total Assets 22,612$ 247,911$ 264,734$ 5,789$

LIABILITIESVouchers Payable 667$ 241,136$ 241,576$ 227$ Due to Other Governmental Units 21,945 225,269 241,652 5,562


TAX COLLECTOR'S TAG AGENCYASSETS

Cash and Cash Equivalents 130,221$ 13,087,139$ 12,989,551$ 227,809$ Accounts Receivable-Net 2,179 20,210 20,012 2,377

Total Assets 132,400$ 13,107,349$ 13,009,563$ 230,186$

LIABILITIESVouchers Payable -$ 10,504$ 10,504$ -$ Due to Other Governmental Units 130,662 13,005,932 12,906,967 229,627 Due to Others 1,738 74,154 75,333 559

Total Liabilities 132,400$ 13,090,590$ 12,992,804$ 230,186$

TAX COLLECTOR'S TAX AND LICENSEASSETS

Cash and Cash Equivalents 1,232,673$ 207,310,755$ 207,361,823$ 1,181,605$

LIABILITIESVouchers Payable -$ 87,022$ 87,022$ -$ Due to Other Governmental Units 1,232,673 11,386,878 11,440,586 1,178,965 Due to Others - 214,352 211,712 2,640

Total Liabilities 1,232,673$ 11,688,252$ 11,739,320$ 1,181,605$



(214)



TAX COLLECTOR'S TAX REDEMPTIONASSETS

Cash and Cash Equivalents 246,211$ 7,167,176$ 7,352,384$ 61,003$

LIABILITIESVouchers Payable -$ 98,568$ 98,568$ -$ Due to Others 246,211 7,183,926 7,369,134 61,003

Total Liabilities 246,211$ 7,282,494$ 7,467,702$ 61,003$

TAX COLLECTOR'S SPECIAL PAYROLLASSETS

Cash and Cash Equivalents -$ 1,055,722$ 1,055,722$ -$

LIABILITIESVouchers Payable -$ 330,024$ 330,024$ -$ Accrued Payroll Deductions and Matching Expense - 750,961 750,961 -

Total Liabilities -$ 1,080,985$ 1,080,985$ -$

CLERK'S CHILD SUPPORTASSETS

Cash and Cash Equivalents -$ 1,420,288$ 1,418,823$ 1,465$ Accounts Receivable 270 - 270 -

Total Assets 270$ 1,420,288$ 1,419,093$ 1,465$

LIABILITIESDue to Others 270$ 1,465$ 270$ 1,465$



(215)



CLERK'S SUSPENSEASSETS

Cash and Cash Equivalents 1,370,051$ 18,335,930$ 18,869,806$ 836,175$ Investments 480,500 232,814 480,500 232,814 Accounts Receivable-Net 251 8,703 8,212 742 Due from Other Governmental Units 739 7,460 7,034 1,165

Total Assets 1,851,541$ 18,584,907$ 19,365,552$ 1,070,896$

LIABILITIESVouchers Payable 106,147$ 3,514,053$ 3,614,498$ 5,702$ Due to Other Governmental Units 361,971 9,714,079 9,684,566 391,484 Due to Others 79,092 746,418 702,512 122,998 Deposits 1,304,331 6,771,936 7,525,555 550,712


BOARD'S AGENCY ESCROW FUNDASSETS


LIABILITIESDue to Others 29,700$ -$ -$ 29,700$

BOARD'S TAX DEED SURPLUSASSETS


LIABILITIESTax Deed Surplus 299,880$ 242,662$ 446,344$ 96,198$



(216)



BOARD'S HOSPITAL DISTRICT PASS THRU FUNDASSETS

Cash and Cash Equivalents -$ 451,000$ 451,000$ -$ Due from Other Governmental Units - 30,207 - 30,207

Total Assets -$ 481,207$ 451,000$ 30,207$

LIABILITIESVouchers Payable -$ 504,750$ 504,750$ -$ Due to Others - 534,957 504,750 30,207

Total Liabilities -$ 1,039,707$ 1,009,500$ 30,207$

TOTAL ALL AGENCY FUNDSASSETS

Cash and Cash Equivalents 3,564,357$ 250,201,946$ 251,221,370$ 2,544,933$ Investments 480,500 232,814 480,500 232,814 Accounts Receivable-Net 25,854 35,416 53,074 8,196 Due from Other Governmental Units 1,345 41,040 10,634 31,751

Total Assets 4,072,056$ 250,511,216$ 251,765,578$ 2,817,694$

LIABILITIESVouchers Payable 106,814$ 5,392,403$ 5,491,331$ 7,886$ Due to Other Governmental Units 1,757,648 34,333,334 34,275,007 1,815,975 Due to Others 415,133 9,413,248 9,482,708 345,673 Accrued Payroll Deductions and Matching Expense - 750,961 750,961 - Deposits 1,492,581 7,040,429 7,981,048 551,962 Tax Deed Surplus 299,880 242,662 446,344 96,198


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Sebring International Raceway The first 12 hour race was held on March 15, 1952 with approximately 7,000 spectators in atten-dance. The admission price was $2. The 2011 race marked the 59th running of the 12 Hours of Sebring, with an estimated 160,000 spectators in attendance.

Highlands Hammock State Park Highlands Hammock opened in 1931. At that time, local citizens promoted the Ham-mock as a candidate for national park status. Although never becoming a national park, Highlands Hammock became one of four original Florida State Parks in 1935.

HIGHLANDS COUNTY, FLORIDA STATISTICAL SECTION

(217)

Contents Page

Financial Trends

Net Assets by Components, Last Nine Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218Changes in Net Assets, Last Nine Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219Fund Balances, Governmental Funds, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223Change in Fund Balances, Governmental Funds, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . 224

Revenue Capacity

Taxable Value and Actual Value of Property, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . 226Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227Principal Property Tax Payers, Current Fiscal Year and Nine Years Prior. . . . . . . . . . . . . . . . . . . . . . . . 228Property Tax Levies and Collections, Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229

Debt Capacity

Ratios of Outstanding Debt by Type, Last Ten Fiscal Years. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 230Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . 232Overlapping Governmental Activities Debt, As of September 30, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . 233Pledged-Revenue Coverage, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 234

The table which concerns computation of legal debt margins is omitted because the Constitution ofthe State of Florida, Section 200.181, Florida Statutes, and Highlands County set no legal debt limit.

Demographic and Economic Information

Demographic and Economic Statistics, Last Ten Fiscal Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235Principal Employers, Current Fiscal Year and Nine Years Prior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Operating Information

Full-time Equivalent County Government Employees by Function, Last Ten Fiscal Years . . . . . . . . . 237Operating Indicators by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238Capital Asset Statistics by Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240

These schedules contain service and capital asset data to help the reader understand how the informationin the County's financial report relates to the services provided by the County and the activities it performs.

Sources: Unless otherwise noted, the information contained in the schedules in this Statistical Section are derived fromthe comprehensive annual financial reports for the relevant year. Highlands County implemented GASB Statement No. 34in 2003; schedules presenting government-wide information include information beginning in that year.

This section of the County's Comprehensive Annual Financial Report represents detailed information as a context forunderstanding what the information in the financial statements, note disclosures and required supplementary informationsays about the County's overall financial health.

These schedules contain trend information to help the reader understand how the County's financialperformance and well-being have changed over time.

These schedules contain information to help the reader assess the County's most significant local revenuesource, ad valorem taxes.

These schedules present information to help the reader assess the affordability of the County's currentlevels of outstanding debt and the County's ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand theenvironment which the County's financial activities take place.

HIGHLANDS COUNTY, FLORIDA NET ASSETS BY COMPONENTS

LAST NINE FISCAL YEARS (IN THOUSANDS)

(218)

2011 2010 2009 2008 2007 2006 2005 2004 2003GOVERNMENTAL ACTIVITIES

Invested in Capital Assets, Net of Related Debt 185,195$ 180,707$ 159,411$ 151,795$ 136,608$ 126,606$ 121,407$ 116,471$ 105,927$ Restricted 2 4,904 5,928 5,577 8,973 13,195 12,636 13,707 17,801 Unrestricted 60,372 61,169 61,741 63,565 62,836 49,416 40,485 25,183 23,289

Total Governmental Activities Net Assets 245,569$ 246,780$ 227,080$ 220,937$ 208,417$ 189,217$ 174,528$ 155,361$ 147,017$

BUSINESS-TYPE ACTIVITIESInvested in Capital Assets, Net of Related Debt 12,797$ 12,884$ 12,712$ 11,336$ 10,475$ 10,010$ 10,123$ 9,685$ 9,844$ Restricted 43 43 43 43 43 43 43 - 44 Unrestricted 2,504 1,862 2,394 5,715 5,585 5,584 4,682 4,489 1,137

Total Business-Type Activities Net Assets 15,344$ 14,789$ 15,149$ 17,094$ 16,103$ 15,637$ 14,848$ 14,174$ 11,025$

PRIMARY GOVERNMENTInvested in Capital Assets, Net of Related Debt 197,992$ 193,591$ 172,123$ 163,131$ 147,083$ 136,616$ 131,530$ 126,156$ 115,771$ Restricted 45 4,947 5,971 5,620 9,016 13,238 12,679 13,707 17,845 Unrestricted 62,876 63,031 64,135 69,280 68,421 55,000 45,167 29,672 24,426

Total Primary Government Net Assets 260,913$ 261,569$ 242,229$ 238,031$ 224,520$ 204,854$ 189,376$ 169,535$ 158,042$

Note: 2009 numbers have been restated from prior year due to the retroactive reporting requirement of GASB 51 for Infrastructure Assets.

Fiscal Year

HIGHLANDS COUNTY, FLORIDA CHANGES IN NET ASSETS LAST NINE FISCAL YEARS

(219)

2011 2010 2009 2008 2007 2006 2005 2004 2003EXPENSES

Governmental Activities:General Government 18,086,207$ 15,153,253$ 19,968,990$ 21,162,088$ 19,309,283$ 17,311,569$ 15,043,416$ 12,174,487$ 10,445,874$ Public Safety 37,834,107 39,105,729 39,023,524 39,539,716 37,587,087 32,707,118 29,138,885 26,415,525 25,642,705 Physical Environment 1,839,208 1,642,807 1,701,146 1,558,585 1,445,740 1,475,436 1,146,635 1,240,704 1,471,317 Transportation 12,263,525 11,561,212 13,388,256 13,075,768 15,067,226 11,336,681 10,117,959 10,783,574 10,993,934 Economic Environment 2,908,356 3,461,633 4,526,853 5,204,115 7,526,683 3,286,915 1,778,190 3,396,508 1,820,635 Human Services 2,939,280 2,766,189 3,191,173 3,088,096 2,696,525 2,267,454 2,550,432 2,300,600 2,539,159 Culture and Recreation 3,289,267 3,540,024 3,923,557 3,635,532 3,290,438 3,119,978 2,285,674 2,556,588 2,579,957 Court Related 2,133,649 2,275,428 3,804,237 4,784,819 4,519,434 4,428,799 4,066,663 3,766,910 4,034,636 Debt Service:

Interest on Long-Term Debt 443,410 854,292 958,961 1,008,366 633,515 1,072,180 997,479 1,005,415 1,537,524 Other Debt Service - - - - 4,435 3,715 3,997 3,314 8,898

Total Governmental Activities Expenses 81,737,009 80,360,567 90,486,697 93,057,085 92,080,366 77,009,845 67,129,330 63,643,625 61,074,639

Business-Type Activities:Solid Waste 8,226,418 8,741,009 9,390,492 9,395,253 9,292,480 9,033,198 8,365,204 7,107,739 8,661,065 Water and Sewer 499,896 614,668 719,812 771,680 797,427 707,697 707,207 526,183 528,148 Highway Park Utility 140,108 140,377 171,354 179,888 192,073 166,666 156,264 116,331 125,874 Energy Recovery 2,005,691 2,100,444 2,211,423 173,975 27,833 - - - -

Total Business-Type Activities Expenses 10,872,113 11,596,498 12,493,081 10,520,796 10,309,813 9,907,561 9,228,675 7,750,253 9,315,087

Total Primary Government Expenses 92,609,122$ 91,957,065$ 102,979,778$ 103,577,881$ 102,390,179$ 86,917,406$ 76,358,005$ 71,393,878$ 70,389,726$

PROGRAM REVENUESGovernmental Activities:

Charges for Services:General Government 2,815,601$ 2,806,369$ 4,772,852$ 5,499,361$ 5,738,638$ 4,817,950$ 3,306,051$ 2,250,153$ 2,030,220$ Public Safety 6,573,661 6,493,030 6,197,193 5,923,168 7,386,221 6,996,469 6,653,507 5,740,591 5,576,672 Physical Environment 230,925 195,153 118,093 109,388 194,114 214,099 197,156 190,731 144,910 Transportation 2,001,802 2,203,767 2,567,381 2,221,887 2,403,335 1,770,813 991,141 849,634 737,314 Economic Environment - - - - 12,500 - - 50 - Human Services 89,708 81,750 148,869 81,145 79,823 81,771 56,207 38,001 39,460 Culture and Recreation 231,266 433,233 457,156 690,455 882,273 232,243 224,711 150,486 138,709 Court Related 3,039,109 2,797,922 3,104,665 3,737,205 4,151,942 4,170,953 3,398,645 2,384,219 1,709,947

Fiscal Year

HIGHLANDS COUNTY, FLORIDA CHANGES IN NET ASSETS

LAST NINE FISCAL YEARS (CONTINUED)

(220)

2011 2010 2009 2008 2007 2006 2005 2004 2003PROGRAM REVENUES (CONTINUED):

Governmental Activities (Continued):Operating Grants and Contributions:

General Government 250,310 231,849 230,248 205,450 48,961 146,106 195,594 1,015,001 566,434 Public Safety 818,288 2,207,940 1,259,652 1,363,811 741,103 1,055,670 679,399 417,094 438,249 Physical Environment 950,632 424,632 562,796 342,730 391,634 533,650 288,508 619,717 548,717 Transportation 7,466 9,753 - - 149,132 135,585 2,389 40,000 (41,445) Economic Environment 1,301,191 1,182,786 2,488,147 3,053,474 5,106,185 710,085 430,759 1,325,416 277,294 Human Services 185,995 245,450 632,921 325,594 23,651 - - 5,088 16,818 Culture and Recreation 279,393 542,500 98,546 300,323 346,383 339,310 325,462 278,477 298,525 Court Related - - - - - - - 160,123 167,192

Capital Grants and Contributions:General Government - 415,238 - - - - 2,298 727,161 1,146,210 Public Safety 25,139 6,071,478 692,231 218,611 73,159 43,344 355,293 36,822 67,208 Physical Environment - 2,635,926 - - - - - - - Transportation 536,922 - 3,522,737 3,538,340 978,890 322,013 946,346 321,842 300,000 Economic Environment - - 176,472 - 487,190 882,254 277,727 - - Human Services - - 285,538 - - - - - 140,000 Culture and Recreation 31,216 - - 2,248 397,752 460,274 502,301 - - Court Related - - - - - - - - -

Total Governmental Activities Program Revenues 19,368,624 28,978,776 27,315,497 27,613,190 29,592,886 22,912,589 18,833,494 16,550,606 14,302,434

Business-Type Activities:Charges for Services:

Solid Waste 8,375,167 8,489,550 8,614,972 9,471,676 10,007,203 9,884,632 10,107,665 8,706,567 8,130,090 Water and Sewer 566,917 588,292 622,442 906,009 773,013 711,727 739,968 587,552 632,335 Highway Park Utility 125,499 116,094 138,759 148,440 159,859 143,415 130,302 99,383 110,988 Energy Recovery 2,302,421 2,438,539 1,987,506 56,690 - - - - -

Operating Grants and Contributions:Solid Waste 88,974 - 130,652 283,770 215,622 458,966 208,892 177,294 289,299 Water and Sewer - - - - - - - - - Highway Park Utility - - - - - - - - - Energy Recovery - 4,301 9,790 - - - - - -

Fiscal Year



(221)

2011 2010 2009 2008 2007 2006 2005 2004 2003PROGRAM REVENUES (CONTINUED):

Business-Type Activities (Continued):Capital Grants and Contributions:

Solid Waste - - - - - - - - - Water and Sewer - - - 1,650,000 255,348 - - - - Highway Park Utility - - - - - - 161,526 - - Energy Recovery - - - - - - - - -

Total Business-Type Activities Program Revenues 11,458,978 11,636,776 11,504,121 12,516,585 11,411,045 11,198,740 11,348,353 9,570,796 9,162,712

Total Primary Government Program Revenues 30,827,602$ 40,615,552$ 38,819,618$ 40,129,775$ 41,003,931$ 34,111,329$ 30,181,847$ 26,121,402$ 23,465,146$

NET REVENUE (EXPENSE)Governmental Activities (62,368,385)$ (51,381,791)$ (63,171,200)$ (65,443,895)$ (62,487,480)$ (54,097,256)$ (48,295,836)$ (47,093,019)$ (46,772,205)$ Business-Type Activities 586,865 40,278 (988,960) 1,995,789 1,101,232 1,291,179 2,119,678 1,820,543 (152,375)

Total Primary Governmental Net Expense (61,781,520)$ (51,341,513)$ (64,160,160)$ (63,448,106)$ (61,386,248)$ (52,806,077)$ (46,176,158)$ (45,272,476)$ (46,924,580)$

GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS:

Governmental Activities:Taxes:

Property Taxes 34,215,713$ 39,721,800$ 42,754,541$ 49,240,654$ 48,952,589$ 36,201,450$ 31,587,749$ 28,778,216$ 26,511,859$ Fuel Taxes 4,803,043 4,371,052 4,509,364 4,409,584 4,423,210 4,491,005 4,554,251 4,428,675 3,702,865 Sales Tax 7,280,803 7,139,393 7,266,949 8,197,815 9,159,885 9,471,209 8,672,935 7,711,242 6,639,940 Services Taxes 804,349 844,997 1,082,703 839,218 815,566 797,295 716,320 465,888 412,025

Other Taxes 349,093 370,367 390,818 419,278 416,879 410,012 399,007 346,480 235,363 State Shared Revenues 12,735,009 12,401,913 10,626,342 9,876,705 10,704,175 10,806,441 10,569,151 9,665,466 8,779,948 Net Change in Fair Value of Investments 370,769 1,168,838 133,948 2,354,339 4,719,371 3,267,968 1,277,866 640,221 852,735 Gain (Loss) on Sale of Capital Assets 14,954 40,487 388,965 39,884 131,464 122,709 66,448 34,999 92,402 Miscellaneous 583,612 1,014,077 1,161,287 1,336,361 1,114,021 2,219,070 7,868,343 3,365,594 1,963,181 Transfers - 423,028 1,000,000 1,250,000 1,250,000 1,000,000 1,750,000 - -

Total Governmental Activities 61,157,345 67,495,952 69,314,917 77,963,838 81,687,160 68,787,159 67,462,070 55,436,781 49,190,318

Fiscal Year



(222)

2011 2010 2009 2008 2007 2006 2005 2004 2003GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS (CONTINUED):

Business-Type Activities:Net Change in Fair Value of Investments 21,099 22,784 43,552 245,495 614,499 487,002 253,917 89,761 86,129 Gain (Loss) on Sale of Capital Assets (52,241) - - - - - (63,061) - (35,616) Miscellaneous - - - - - 11,228 113,363 485,014 - Transfers - (423,028) (1,000,000) (1,250,000) (1,250,000) (1,000,000) (1,750,000) - -

Total Business-Type Activities (31,142) (400,244) (956,448) (1,004,505) (635,501) (501,770) (1,445,781) 574,775 50,513

Total Primary Government 61,126,203$ 67,095,708$ 68,358,469$ 76,959,333$ 81,051,659$ 68,285,389$ 66,016,289$ 56,011,556$ 49,240,831$

Change in Net Assets:Government Activities (1,211,040)$ 16,114,161$ 6,143,717$ 12,519,943$ 19,199,680$ 14,689,903$ 19,166,234$ 8,343,762$ 2,418,113$ Business-Type Activities 555,723 (359,966) (1,945,408) 991,284 465,731 789,409 673,897 2,395,318 (101,862)

Total Primary Government (655,317)$ 15,754,195$ 4,198,309$ 13,511,227$ 19,665,411$ 15,479,312$ 19,840,131$ 10,739,080$ 2,316,251$

Fiscal Year

HIGHLANDS COUNTY, FLORIDA FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS

(223)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002GENERAL FUND

Nonspendable 606,075$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Restricted - - - - - - - - - - Assigned 1,115,776 - - - - - - - - - Unassigned 19,725,387 - - - - - - - - - Reserved - 1,565,101 2,859,901 2,900,779 3,082,747 1,279,553 2,221,948 2,016,546 598,098 799,352 Unreserved - 22,275,114 19,796,301 24,491,485 24,289,659 16,922,380 14,025,705 7,296,255 6,003,861 3,562,119

Total General Fund 21,447,238$ 23,840,215$ 22,656,202$ 27,392,264$ 27,372,406$ 18,201,933$ 16,247,653$ 9,312,801$ 6,601,959$ 4,361,471$

ALL OTHER GOVERNMENTAL FUNDSNonspendable 1,460$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Restricted 39,143,321 - - - - - - - - - Assigned - - - - - - - - - - Unassigned (178,875) - - - - - - - - - Reserved - 7,887,418 9,137,019 9,127,039 10,057,881 10,270,341 7,591,699 7,992,241 11,509,812 15,479,710 Unreserved, Reported in:

Special Revenue Funds - 33,589,983 34,148,889 33,764,236 27,646,106 23,557,029 18,957,721 11,340,363 12,266,756 12,223,806 Capital Project Funds - 800,265 1,861,663 1,586,738 5,090,701 9,427,565 9,154,497 9,214,077 9,732,879 10,633,306

Total all Other Governmental Funds 38,965,906$ 42,277,666$ 45,147,571$ 44,478,013$ 42,794,688$ 43,254,935$ 35,703,917$ 28,546,681$ 33,509,447$ 38,336,822$

Fiscal Year

Note: In FY 2011 the County implemented GASB 54, under which governmental fund balances are reported as nonspendable, restricted, committed, assigned and unassigned. Prior year numbers have not been restated.

HIGHLANDS COUNTY, FLORIDA CHANGE IN FUND BALANCES, GOVERNMENTAL FUNDS


(224)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002REVENUES

Taxes 47,393,350$ 52,383,527$ 55,938,981$ 63,028,603$ 63,694,906$ 51,322,436$ 45,886,814$ 41,690,802$ 37,266,689$ 34,704,725$ Licenses and Permits 588,807 626,285 469,927 669,696 1,720,033 1,731,578 1,920,223 1,382,320 864,197 753,911 Intergovernmental 19,184,676 28,655,078 18,306,649 19,325,422 20,165,057 15,917,094 18,026,266 15,436,986 12,959,807 14,697,545 Charges for Services 7,344,562 7,702,508 9,088,110 9,669,202 10,186,909 11,598,937 9,839,861 7,380,846 6,955,483 5,939,379 Fines and Forfeitures 141,395 86,258 631,108 962,446 1,049,868 871,765 687,660 509,446 596,594 585,902 Assessments 2,089,742 2,045,674 2,271,304 2,966,861 3,134,252 2,154,004 2,275,218 1,938,776 1,833,235 1,401,018 Net Change in Fair Value of Investments 350,324 1,161,410 127,481 2,267,463 4,614,155 3,191,611 1,241,334 553,042 828,954 870,052 Miscellaneous 3,712,680 3,683,528 4,392,297 3,127,998 3,143,265 2,122,582 2,683,717 3,075,845 2,090,215 1,353,002

Total Revenues 80,805,536 96,344,268 91,225,857 102,017,691 107,708,445 88,910,007 82,561,093 71,968,063 63,395,174 60,305,534


General Government 17,706,422 17,019,808 17,845,124 19,541,745 17,046,449 14,799,296 15,354,262 15,149,612 15,132,677 11,659,962 Public Safety 37,853,328 40,982,588 39,125,774 39,698,422 37,879,697 33,778,083 30,790,619 27,502,647 26,086,150 24,256,540 Physical Environment 1,763,210 7,592,052 1,666,698 1,598,727 1,442,740 1,466,948 1,109,342 1,244,046 1,248,172 1,261,856 Transportation 13,735,417 18,560,988 18,673,605 20,917,966 20,649,778 13,099,383 12,175,099 14,432,139 13,287,196 13,549,825 Economic Environment 2,876,117 3,429,422 4,863,344 5,315,427 7,568,796 3,286,915 1,778,190 3,396,508 1,787,449 1,526,858 Human Services 2,828,400 2,929,756 3,582,048 3,208,246 2,670,759 2,430,866 2,679,567 2,338,271 2,169,214 2,006,368 Culture and Recreation 2,828,665 3,118,665 3,685,114 3,824,583 6,073,634 4,679,289 3,800,941 3,869,108 2,194,196 2,444,132 Court Related 2,087,156 2,304,739 3,741,089 4,821,183 4,627,215 4,437,878 4,104,173 3,833,697 3,709,524 3,249,794

Debt Service:Principal Retirement 4,051,087 1,637,315 2,122,952 1,609,015 1,882,592 1,590,685 1,441,337 1,409,706 437,895 1,158,449 Interest 600,559 866,990 980,629 1,024,646 1,071,889 1,081,651 1,005,695 1,040,939 951,725 119,715 Bond Administration - - - - - - - - - 334,297 Other Debt Service 37,980 10,865 5,984 4,548 4,435 3,715 3,997 3,314 8,898 -

Total Expenditures 86,368,341 98,453,188 96,292,361 101,564,508 100,917,984 80,654,709 74,243,222 74,219,987 67,013,096 61,567,796

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5,562,805) (2,108,920) (5,066,504) 453,183 6,790,461 8,255,298 8,317,871 (2,251,924) (3,617,922) (1,262,262)

Fiscal Year

HIGHLANDS COUNTY, FLORIDA CHANGE IN FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (CONTINUED)

(225)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002OTHER FINANCING SOURCES (USES)

Transfers In 1,969,664 3,136,525 4,986,465 5,021,659 1,514,882 1,032,763 2,155,272 294,777 27,990 400,000 Transfers Out (1,969,664) (2,713,497) (3,986,465) (3,771,659) (264,882) (32,763) (405,272) (294,777) (27,990) (283,786) Issuance of Refunding Note 11,890,000 - - - - - - - - - Loan Proceeds - - - - 669,765 250,000 4,024,217 - 640,000 24,099,692 Payment to Refunded Bond Escrow Agent (12,031,932) - - - - - - - - -

Total Other Financing Sources (Uses) (141,932) 423,028 1,000,000 1,250,000 1,919,765 1,250,000 5,774,217 - 640,000 24,215,906

Net Change in Fund Balances (5,704,737)$ (1,685,892)$ (4,066,504)$ 1,703,183$ 8,710,226$ 9,505,298$ 14,092,088$ (2,251,924)$ (2,977,922)$ 22,953,644$

Debt Service as a Percentage of Noncapital Expenditures 5.91% 2.94% 3.73% 3.10% 3.40% 3.65% 4.04% 3.99% 2.62% 2.94%

Fiscal Year

HIGHLANDS COUNTY, FLORIDA TAXABLE VALUE AND ACTUAL VALUE OF PROPERTY


(226)

Assessed Valuea of Total Total

Fiscal Residential Commercial Personal Less: Allowable Taxable Direct

Year Property Agriculture Property Other Property Exemptions Valueb Tax Ratec

2011 4,333,665,684$ 661,062,597$ 858,201,822$ 1,021,215,059$ 632,201,205$ 2,584,930,120$ 4,921,416,247 7.1000

2010 5,390,566,985 722,240,630 973,110,137 1,157,498,279 640,605,018 3,166,988,865 5,717,032,184 7.1000

2009 6,311,674,643 783,215,760 968,560,507 1,191,522,801 627,224,780 3,591,019,986 6,291,178,505 7.1000

2008 6,832,027,709 721,118,570 901,197,025 1,175,437,888 611,327,180 3,373,338,257 6,867,770,115 7.3544

2007 5,841,496,016 559,941,177 695,806,213 1,174,231,933 575,561,210 2,959,552,552 5,887,483,997 8.5000

2006 3,738,996,088 519,852,336 571,063,103 880,799,061 533,684,140 2,077,560,654 4,166,834,074 9.0000

2005 2,807,195,061 614,210,251 522,151,126 745,125,927 476,210,400 1,681,969,990 3,482,922,775 9.0000

2004 2,392,669,161 614,207,984 487,448,360 700,618,824 464,849,960 1,454,173,652 3,205,620,637 9.0000

2003 2,213,235,341 604,517,443 467,127,022 664,520,804 480,914,910 1,375,756,381 3,054,559,139 8.5000

2002 2,111,352,052 567,005,911 450,413,929 611,691,735 468,447,904 1,273,716,696 2,935,194,835 8.5000

Source: Highlands County Property Appraiser

Notes:aAssessed value is determined by the Highlands County Property Appraiser on January 1 of each year at 100% of fair market value, as required by Section 192.042, Florida Statutes.

bTaxable values are based on the assessed value after deducting allowable statutory exemptions.

cPer $1,000 of value

Real Property (Assessed Valuea)

HIGHLANDS COUNTY, FLORIDA DIRECT AND OVERLAPPING PROPERTY TAX RATES

(PER $1,000 OF ASSESSED VALUE) LAST TEN FISCAL YEARS

(227)

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002

COUNTY 7.1000 7.1000 7.1000 7.3544 8.5000 9.0000 9.0000 9.0000 9.0000 8.5000

SCHOOL DISTRICTGeneral 5.1180 5.2640 5.2420 4.9610 5.1780 5.3750 5.7870 6.0390 6.0570 5.9870Discretionary 0.9980 0.9980 0.6950 0.7030 0.7310 0.7600 0.6880 0.6980 0.7090 0.7070Capital Improvement 1.5000 1.4250 1.7500 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000

Total School District 7.6160 7.6870 7.6870 7.6640 7.9090 8.1350 8.4750 8.7370 8.7660 8.6940

SOUTH FLORIDA WATER DISTRICT 0.6240 0.6240 0.6240 0.6240 0.6970 0.6970 0.6970 0.6970 0.6970 0.6970

SOUTHWEST FLORIDA WATER DISTRICT 0.5597 0.5693 0.5693 0.5693 0.6170 0.6170 0.6170 0.6170 0.6170 0.6170

CITY OF AVON PARK 5.8745 5.8745 5.8745 6.3115 7.5000 7.7500 7.7500 7.7500 7.7500 7.7500

CITY OF SEBRINGGeneral 5.4338 5.4965 5.5204 5.6271 6.5000 6.5000 6.5000 6.5000 6.5000 6.5000

Total City of Sebring 5.4338 5.4965 5.5204 5.6271 6.5000 6.5000 6.5000 6.5000 6.5000 6.5000

TOWN OF LAKE PLACID 3.8100 3.8100 3.8100 3.9500 5.0000 5.0000 5.0000 4.0000 5.3000 5.3000

Total 31.0180 31.1613 31.1852 32.1003 36.7230 37.6990 38.0390 37.3010 38.6300 38.0580


HIGHLANDS COUNTY, FLORIDA PRINCIPAL PROPERTY TAX PAYERS

CURRENT FISCAL YEAR AND NINE YEARS PRIOR

(228)

Percentage Percentageof Total County of Total County

Assessed Assessed Assessed AssessedTaxpayer Type of Business Value Rank Value Value Rank ValueProgress Energy Florida, Inc. Electric Utility 111,911,750$ 1 1.49% 77,653,294$ 1 1.84%

Sebring Airport Authority Industrial/Entertainment 61,246,172 2 0.82% 16,384,629 9 0.39%

Gulfstream Natural Gas System, LLC Gas System 60,434,780 3 0.81% - - -

Lykes Brothers, Inc. Cattle & Citrus 48,640,154 4 0.65% 60,103,046 2 1.43%

Glades Electric Cooperative, Inc. Electric Utility 35,822,800 5 0.48% 22,591,811 7 0.54%

Embarq-Florida, Inc. Telephone Services 32,522,070 6 0.43% 53,982,254 3 1.28%

Tanglewood Investors Limited Real Estate 31,796,799 7 0.42% - - -

Highlands County Hospital Hospital 28,600,627 8 0.38% 18,968,956 8 0.45%

Walmart Retail 26,033,528 9 0.35% - - -

809 Lake Jackson LLC Real Estate 22,050,578 10 0.29% - - -

Lakeshore/Sebring Limited Retail - - - 27,898,951 5 0.66%

Tampa Electric Company Electric Utility - - - 31,071,093 4 0.74%

Ben Hill Griffin, Inc. Citrus - - - 22,945,732 6 0.55%

Sun-N-Lake of Sebring Real Estate - - - 14,931,995 10 0.35%

Total Assessed Value of Ten Largest Taxpayers 459,059,258 6.12% 346,531,761 8.23%

Total Assessed Value of All Other Taxpayers 7,047,287,109 93.88% 3,862,379,770 91.77%

Total Assessed Value of All Taxpayers 7,506,346,367$ 100.00% 4,208,911,531$ 100.00%


Note: The assessed value includes real and personal property.

Fiscal Year 2011 Fiscal Year 2002

HIGHLANDS COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS


(229)

Taxes Levied

for the Collections

Fiscal Fiscal YearaPercentage of in Subsequent Percentage of

Year (Original Levy) Amountb Original Levy YearsbAmount Original Levy

2011 34,942,081$ 33,766,320$ 96.64% N/A N/A N/A

2010 40,590,957 39,186,283 96.54% 280,218 39,466,501 97.23%

2009 44,667,387 42,692,654 95.58% 649,940 43,342,594 97.03%

2008 50,508,381 49,064,462 97.14% 89,822 49,154,284 97.32%

2007 50,043,678 46,310,231 92.54% *** *** ***

2006 37,501,546 34,793,807 92.78% *** *** ***

2005 31,346,313 29,479,267 94.04% *** *** ***

2004 28,850,618 26,915,429 93.29% *** *** ***

2003 27,491,064 25,537,624 92.89% *** *** ***

2002 25,061,090 23,335,100 93.11% *** *** ***

***Information was not available.


Notes:

Collected within the

Fiscal Year of the Levy Total Collections to Dateb

aProperty taxes become due and payable on November 1 of each year. A four percent discount is allowed if taxes are paidin November, with the discount declining by one percent each month thereafter. Accordingly, taxes collected will never be100% of the tax levy. Taxes become delinquent on April 1 of each year and tax certificates for the full amount of any unpaidtaxes must be sold no later than June 1 of each year.

Property taxes receivable and a corresponding reserve for uncollectible property taxes are not included in the financialstatements as there are no delinquent taxes as of September 30, 2011.

Information regarding the Original Levy was obtained from the Property Appraiser.

bInformation was obtained from the Tax Collector's Recapitulation of the Tax Roll report.

HIGHLANDS COUNTY, FLORIDA RATIOS OF OUTSTANDING DEBT BY TYPE


(230)

GeneralFiscal Obligation Notes Revenue Mortgage Capital Notes Capital Year Bonds Payable Certificates Payable Leases Payable Leases

2011 -$ 14,228,841$ 90,000$ -$ 179,374$ 2,188,265$ 79,877$

2010 15,480,000 2,570,623 151,667 - 346,843 2,796,430 250,673

2009 16,705,000 2,793,696 180,000 - 507,752 3,375,273 435,539

2008 17,885,000 3,553,724 208,333 - 662,343 2,082,273 3,379,820

2007 19,025,000 3,834,368 236,667 - 822,380 2,457,241 1,027,176

2006 20,135,000 4,105,310 267,576 - 623,356 2,816,390 458,511

2005 21,215,000 4,324,498 312,803 100,000 520,333 3,160,420 615,507

2004 22,270,000 956,401 358,272 200,000 105,081 3,458,308 -

2003 23,295,000 1,035,817 464,418 300,000 204,224 3,763,395 -

2002 23,295,000 857,033 647,555 400,000 297,766 1,144,424 -

Notes: Details regarding the County's outstanding debt can be found in the notes to the financial statements.

Governmental Activities Business-Type Activities

(231)

Total PercentagePrimary of Personal Per Personal

Government Income Capita Income Population

16,766,357$ N/A -$ -$ -

21,596,236 N/A - - 99,215

23,997,260 11.75% 240 2,819,310 100,111

27,771,493 10.01% 277 2,780,429 100,207

27,402,832 9.94% 277 2,722,913 98,768

28,406,143 9.05% 299 2,570,214 94,950

30,248,561 7.80% 324 2,359,230 93,456

27,348,062 7.74% 297 2,117,816 92,057

29,062,854 6.93% 322 2,014,682 90,393

26,641,778 7.36% 299 1,959,546 89,038

HIGHLANDS COUNTY, FLORIDA RATIOS OF GENERAL BONDED DEBT OUTSTANDING


(232)

Less:Amounts Percentage of

General Restricted to Percentage Actual ValueFiscal Obligation Repaying Principal of Personal of Taxable PerYear Bondsa

and Interest Total Income Property Capita

2011 -$ -$ -$ N/A 0.00% N/A

2010 15,480,000 1,645,020 13,834,980 N/A 0.16% N/A

2009 16,705,000 1,965,968 14,739,032 N/A 0.15% 147.23

2008 17,885,000 1,962,960 15,922,040 0.59% 0.16% 158.89

2007 19,025,000 1,936,737 17,088,263 0.64% 0.19% 173.01

2006 20,135,000 1,942,395 18,192,605 0.71% 0.29% 191.60

2005 21,215,000 1,973,435 19,241,565 0.82% 0.37% 205.89

2004 22,270,000 1,966,972 20,303,028 0.96% 0.44% 220.55

2003 23,295,000 1,953,666 21,341,334 1.06% 0.48% 236.09

2002 23,295,000 1,122,404 22,172,596 1.13% 0.53% 249.02

Notes:

General Bonded Debt Outstanding

aHighlands County Florida Infrastructures Sales Surtax Revenue Bond Series 2002, delivered 6/13/02. Refunded and redeemed 11/10/10.

HIGHLANDS COUNTY, FLORIDA OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

SEPTEMBER 30, 2011

(233)

EstimatedEstimated Share of

Debt Percentage OverlappingGovernmental Unit Outstanding Applicablea Debt

Debt repaid with property taxes: County 61,240,000$ 100% 61,240,000

Total overlapping debt 61,240,000$

Source: Debt outstanding data provided by the Highlands County School Board.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundariesof the county. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Highlands County. This process recognizesthat, when considering the government's ability to issue and repay long-term debt, the entire debtburden borne by the residents and businesses should be taken into account. However, this does notimply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

a The percentage of overlapping debt applicable is estimated using taxable assessed property values.Applicable percentages were estimated by determining the portion of the county's taxable assessedvalue that is within the government's boundaries and dividing it by the county's total taxable assessedvalue.

HIGHLANDS COUNTY, FLORIDA PLEDGED-REVENUE COVERAGE


(234)

InfrastructureSales

Fiscal SurtaxYear Revenue Principal Interest Total Coverage

2011 7,280,190$ 3,811,733$ 560,697$ 4,372,430$ 1.67

2010 7,153,417 1,437,856 838,824 2,276,680 3.14

2009 7,267,213 1,384,490 891,665 2,276,155 3.19

2008 8,226,463 1,336,452 940,174 2,276,626 3.61

2007 9,035,773 1,298,730 983,820 2,282,550 3.96

2006 9,199,530 1,216,786 986,558 2,203,344 4.18

2005 8,672,935 1,055,000 910,731 1,965,731 4.41

2004 7,711,243 1,025,000 938,239 1,963,239 3.93

2003 6,725,356 - 842,359 842,359 7.98

2002 ** ** ** ** **

Notes: Details regarding the County's outstanding debt can be found in the notes to the financial statements.

** No restricted revenue

Infrastructure Sales Surtax Pledged Revenue Coverage

Debt Service Requirements

The 2002 Bond issue and the 2005 Infrastructure Sales Surtax Revenue Note are serviced from and securedby designated revenues derived from the County's share of the one cent local discretionary infrastructuresales surtax.

HIGHLANDS COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS


(235)

Total Personal Per Capita PublicIncomeb Personal School Unemployment

Year Populationa (in thousands) Incomec Enrollmentd Ratee

2011 - -$ -$ 12,012 12.60%

2010 99,125 - - 12,059 13.20%

2009 100,111 2,819,310 28,563 12,148 11.60%

2008 100,207 2,780,429 28,075 12,328 8.30%

2007 98,768 2,722,913 27,640 12,391 5.20%

2006 94,950 2,570,214 26,425 12,456 4.00%

2005 93,456 2,359,230 24,789 12,133 4.70%

2004 92,057 2,117,816 22,813 12,004 6.80%

2003 90,393 2,014,682 22,195 11,625 6.20%

2002 89,038 1,959,546 21,799 11,459 7.40%

Notes:

dInformation was provided by the Highlands County District School Board.

eInformation was provided by the Florida Agency for Workforce Innovation, Bureau of Labor Statistics.

aInformation was provided by the Office of Economic and Demographic Research, Florida Legislature, and Bureau of Economic and Business Research, University of Florida.

bInformation was provided by the U.S. Department of Commerce, Bureau of Economic Analysis.

cInformation was provided by Bureau of Economic and Business Research, U.S. Department of Commerce, and State of Florida.

HIGHLANDS COUNTY, FLORIDA PRINCIPAL EMPLOYERS

CURRENT FISCAL YEAR AND NINE YEARS PRIOR

(236)

Percentage Percentageof Total County of Total County

Employer Employees Rank Employment Employees Rank Employment

Highlands County School Board 1,574 1 4.01% *** *** ***

Florida Hospital 1,500 2 3.82% *** *** ***

Wal-Mart 796 3 2.03% *** *** ***

Agero f/k/a Cross Country Automotive Services 600 4 1.53% *** *** ***

Highlands Regional Medical Center 413 5 1.05% *** *** ***

Highlands County Board of County Commissioners 374 6 0.95% *** *** ***

DelRay Plants 350 7 0.89% *** *** ***

Highlands County Sheriff's Office 328 8 0.83% *** *** ***

The Palms of Sebring 257 9 0.65% *** *** ***

Alan Jay Automotive 250 10 0.64% *** *** ***

Total 6,442 16.40% - -

Labor Force Employed 39,282

Labor force employed numbers were obtained from the Florida Research and Economic Database.

*** Information not available.

2011 2002

Source: Top employer information was provided by the Highlands County Economic Development Commission.

HIGHLANDS COUNTY, FLORIDA FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION


(237)

Function 2011 2010 2009 2008 2007 2006 2004 2003 2002 2001

GENERAL GOVERNMENTLegislative 5 5 5 5 5 5 * * * *Executive 5 4 5 4 4 4 * * * *Financial and Administrative 123 124 98 112 120 112 * * * *Comprehensive Planning 7 7 6 9 9 7 * * * *Other General Government 34 35 36 34 34 36 * * * *

PUBLIC SAFETYLaw Enforcement 197 210 219 200 203 192 * * * *Fire Control 22 23 20 15 12 12 * * * *Detention / Correction 118 120 120 121 117 107 * * * *Protective Inspection 17 18 19 21 23 26 * * * *Emergency and Disaster 4 5 7 6 6 6 * * * *Ambulance and Rescue 70 80 78 59 57 59 * * * *Other Public Safety 2 2 2 2 2 1 * * * *

PHYSICAL ENVIRONMENTWater Utility Services 27 29 30 31 31 27 * * * *Conservation and Rescue 10 13 14 15 15 12 * * * *

TRANSPORTATIONRoad and Street Facilities 111 113 114 123 123 118 * * * *

ECONOMIC ENVIRONMENTHousing 1 4 4 5 4 5 * * * *Veteran Services 3 3 3 3 3 3 * * * *Other 1 2 2 2 2 3 * * * *

HUMAN SERVICESHealth 8 8 7 7 6 7 * * * *Welfare 7 8 10 12 8 4 * * * *Other Human Services - - - - - 1 * * * *

CULTURE AND RECREATIONLibraries 17 19 20 20 23 22 * * * *Parks & Recreation 15 15 15 13 16 14 * * * *

COURT RELATEDCourt General Administration 8 9 10 12 12 13 * * * *Circuit Court Criminal 6 6 6 7 7 7 * * * *Circuit Court Civil 4 5 5 3 5 4 * * * *Circuit Court Family 5 7 8 7 7 7 * * * *Circuit Court Juvenile 4 4 4 4 5 4 * * * *Court General Operations 8 7 8 23 23 17 * * * *County Court Traffic 7 7 7 7 7 8 * * * *

Total 846 892 880 882 889 843 * * * *

* Information is not available

Full-Time Equivalent Employees as of September 30

HIGHLANDS COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION

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FunctionProgram 2011 2010 2009 2008 2007 2006

GENERAL GOVERNMENTNew Hires 35 20 20 67 60 122 Purchase Orders Issued 2,069 2,107 2,398 2,758 3,572 2,733 Comp Plan Amendments 563 17 21 39 30 38 IT Work Orders Completed 5,097 5,804 5,402 5,190 4,702 1,672 IT Users Served 614 613 530 535 514 560

PUBLIC SAFETYEmergency Medical Services:

Emergency 911 Call Volume: EMS Calls 14,243 13,628 13,781 12,713 12,970 12,644 Fire Department Calls 6,567 7,156 6,893 5,330 5,567 6,520 Average EMS Response Time (in Minutes) 6 6 6 5.57 6.50 6.54 Air Medical Service (Number of Flights) 142 149 156 78 69 82

Sheriff:Arrests Made 5,920 6,021 6,452 7,314 7,372 6,984 Traffic Citations Issued 3,852 4,747 4,614 5,694 7,027 15,705

Detentions and Correction:Jail Average Daily Population 406 388 403 471 456 328

Building Department:Permits Issued 3,784 3,788 3,606 4,798 7,743 10,273 Inspections Performed 6,162 6,279 5,529 7,646 14,808 16,791

Zoning Department:Code Enforcement Complaints Received 1,756 2,782 2,354 2,441 644 2,745

Code Enforcement Inspections Performed 4,689 4,574 4,937 6,424 3,584 6,585

PHYSICAL ENVIRONMENTRecycled Waste (Tons) 48 112 3,059 25,790 3,354 3,315 Landfill Waste:

Residential Household Waste (Tons) 39,601 42,268 46,097 53,396 54,901 59,073 Commercial Waste (Tons) 27,010 27,779 26,576 30,774 39,614 42,008

TRANSPORTATIONMiles of Road Constructed 2 1 0 0.28 1.02 0.57 Miles of Road Reconstructs 2 1 1 1.04 - 0.97 Miles of Road Resurfaced 33 29 32 6.72 16.26 19.52

ECONOMIC ENVIRONMENTDown Payment Assistance Loan Program * * * * * 9 Veterans' Services:

In Office Visits 6,262 8,216 19,168 15,384 8,137 4,341 Phone Calls Received 24,672 34,360 24,834 19,895 29,874 19,608 Home Visits 151 215 259 169 107 48 Transportation Trips * * * * 731 539 Presentations 310 453 526 607 528 255

(continued)

Fiscal Year

HIGHLANDS COUNTY, FLORIDA OPERATING INDICATORS BY FUNCTION (CONTINUED)

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HUMAN SERVICESAnimal Control:

Number of Complaints Received 8,643 9,457 8,673 7,730 6,382 7,265 Number of Impoundments 7,201 6,408 6,183 4,919 4,039 4,212 Animals Reclaimed 509 487 459 461 363 36,453 Animals Adopted 286 293 310 155 66 53 Animals Donated to Humane Society 1,021 829 481 78 68 65 Animals Euthanized 4,917 4,173 4,139 3,650 3,089 3,183 Wildlife Relocated 378 512 401 517 413 454

Transportation Trips for Disadvantaged Persons 70,631 73,855 52,894 73,160 30,824 29,715

CULTURE AND RECREATIONLibrary Operations:

Registered Borrowers in Highlands County 61,513 57,614 54,109 48,914 41,700 41,557 Library Visitors 303,053 331,523 330,167 297,748 325,182 288,332 Items Circulated: Adult 304,191 338,950 358,708 313,774 279,438 168,471 Children 96,903 86,000 69,517 76,360 85,129 162,727 Adult Programs: Number of Programs 174 276 143 171 165 629 Number of Attendees 2,097 2,218 4,140 1,075 1,786 2,955 Children's Programs: Number of Programs 243 293 312 170 288 279 Number of Attendees 2,235 1,832 4,017 4,077 7,011 5,319 Volunteer Hours 8,465 8,393 6,709 5,354 6,202 8,570 Library Webpage Visits 954,110 1,003,689 729,660 381,732 * *Public Internet Usage (Hours) * 53,978 55,732 47,714 * *

Park Rentals:H.L. Bishop 40 43 * * * 62

Boat Ramps Maintained 39 39 38 39 39 39

COURT RELATEDCases in Court 30,887 27,726 28,451 36,629 30,942 31,915 Individuals thru Security 149,639 172,518 156,498 207,058 139,066 119,052

* Information not available

Fiscal Year

Source: Information was obtained from various County departments. In future years, the information will be expanded to reflect 10 years of history.

HIGHLANDS COUNTY, FLORIDA CAPITAL ASSETS BY FUNCTION

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GENERAL GOVERNMENTIT Networked Buildings 34 34 31 28 27 25

PUBLIC SAFETYEMS Vehicles Ambulances 15 15 14 15 14 14 Jaws 2 2 2 2 2 2 Administrative 2 2 2 2 2 2Paid/Volunteer Fire Stations * * * * * *

Stations 1 1 1 1 1 1 Sub-Stations 3 3 3 3 3 3 Patrol Vehicles 85 89 87 89 80 87 Command Center 1 1 3 3 3 1 Special Operations Vehicle 2 4 3 3 2 1 Aircraft 1 1 1 1 1 1 Watercraft 4 4 4 4 4 2Correction Facility Capacity 504 504 524 524 512 512

TRANSPORTATIONMiles of County Road: Paved 998.26 984.34 984.34 984.02 980.06 977.08 Unpaved 220.01 206.93 206.93 206.65 204.76 202.93Number of Airports 3 3 3 3 3 2

CULTURE AND RECREATIONNumber of County Libraries 3 3 3 3 3 3Library Books 208,778 196,583 191,525 183,934 166,139 193,943Library Audio Materials 10,890 10,158 10,455 10,860 10,409 - Library Video Materials 20,767 19,116 18,143 18,390 16,955 14,755Number of County Boat Ramps 39 39 38 39 39 39Number of County Parks 21 21 21 21 21 18 Parks with Playgrounds 4 4 5 5 5 4 Parks with Baseball/Softball Fields 6 6 6 6 6 2Park Acreage (Estimated): Developed 1464.83 1464.83 1464.83 1469.83 1469.83 1,447.83 Undeveloped 30.67 30.67 30.67 30.67 30.67 52.67

Source: Information was obtained from various County departments. In future years, the information will be expanded to

reflect 10 years of history.

Fiscal Year

CO

MPLIA

NC

E S

EC

TIO

N

Avon Park Citrus Packing House 1924

Lake Placid Tower 1960

The Lake Placid Tower was constructed in 1960 and stands 225-feet tall. The tower was proclaimed as Florida’s tallest observation tower and the tallest concrete block structure in the world. From one of three observation decks, visitors were offered a bird’s eye view of citrus groves, lakes and the roll-ing hills of the Lake Wales Ridge.

Sebring’s Fly Factory 1958

Using the USDA’s discovery, Sebring became the home of a “fly factory” capable of produc-ing 50 million sterile male screwworm flies per week. The idea was to inundate the screw-worm population with sterile male flies by releasing them from airplanes. In 1959, the Screwworm Eradication Pro-gram was deemed a success and the “fly factory” was de-commissioned.

HIGHLANDS COUNTY, FLORIDA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

AND STATE FINANCIAL ASSISTANCE YEAR ENDED SEPTEMBER 30, 2011

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CFDA GrantFederal/State agency CSFA Contract Transfers toPass-Through Entity Number Number Expenditures Subrecipients U.S. Department of Agriculture:Direct Programs:

Cooperative Forestry Assistance 10.664 05H-60 900$ - Total U.S. Department of Agriculture 900 -

U.S. Department of Housing and Urban DevelopmentDirect Programs:

Home Investment Partnerships Program 14.239 M-06-DC-12-0233 2,234 - Home Investment Partnerships Program 14.239 M-07-DC-12-0253 53,093 - Home Investment Partnerships Program 14.239 M-08-DC-12-0233 300,136 - Home Investment Partnerships Program 14.239 M-09-DC-12-0233 250,555 -

Total Home Investment Partnerships Program 606,018 Pass-Through from Florida Department ofCommunity Affairs:

Homelessness Prevention and Rapid Re-housing Program 14.257 TFZ10-01 100,969 -

Total U.S. Department of Housing and Urban Development 706,987

U.S. Department of the Interior:Pass-Through from Florida Fish and WildlifeConservation Commission:

Cooperative Endangered Species Conservation Fund 15.615 FL E-32-1 HP 119,123 - Total U.S. Fish and Wildlife Service 119,123

U.S. Department of Justice:Direct Programs:

State Criminal Alien Assistance Program 16.606 2009-G4587-FL-AP 27,944 - Bulletproof Vest Partnership Program 16.607 N/A 20,821 - Public Safety Partnership & Community Policing 16.710 2007CKWX0321 4,432 -

JAG Program Cluster:Edward Byrne Memorial Justice Assistance Grant Program 16.738 2010-DJ-BX-1479 16,244 - Pass-Through from Florida Department of Law Enforcement:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2011-JAGC-HIGH-1-B2-167 112,974 - ARRA - Edward Byrne Memorial Justice Assistance Grant Program / Grants to States and Territories 16.803 2010-ARRC-HIGH-1-W7-013 112,983 -

Total JAG Program Cluster 242,201Pass-Through from Florida Attorney General:

Crime Victim Assistance 16.575 V10029 96,224 - Residential Substance Abuse Treatment for State Prisoners 16.593 2011-RSAT-HIGH-1-A9-002 50,000 -

Total U.S. Department of Justice 441,622



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CFDA GrantFederal/State agency CSFA Contract Transfers toPass-Through Entity Number Number Expenditures Subrecipients

U.S. Department of Transportation:Pass-Through from Florida Department of Transportation:

AARA - Highway Planning and Construction 20.205 412566-1 105,577 - AARA - Highway Planning and Construction 20.205 FM# 407994-1 10,719 - AARA - Highway Planning and Construction 20.205 410277-4-58-01 177 - AARA - Highway Planning and Construction 20.205 FPN #417950-1 144,542 -

Total U.S. Department of Transportation 261,015

U.S. Department of EnergyDirect Programs:

Energy Efficiency and Conservation Block Grant Program 81.128 ARE005 45 -

Total U.S. Department of Energy 45

Election Assistance Commission:Pass-Through from Florida Division of Elections:

Help America Vote Act Requirement Payments 90.401 N/A 11,752 - Total Election Assistance Commission 11,752

U.S. Department of Health and Human ServicesPass-Through from Ounce of Prevention Fund of Florida, Inc.:

TANF - Healthy Families Highlands 93.558 HF-10-11-42 142,698 - TANF - Healthy Families Highlands 93.558 HF-11-12-42 43,296 -

Total TANF - Healthy Families Highlands 185,994 Pass-Through U.S. Agency for Children and Families, Office of Child Support Enforcement, Florida Department of Revenue:

Child Support Enforcement 93.563 CD328 162,969 - Total U.S. Department of Health and Human Services 348,963 -

Department of Homeland Security:Direct Programs:

Emergency Management Preparedness 97.042 11-FG-7W-07-38-01-047 51,768 - Emergency Management Preparedness 97.042 10-DS-39-13-00-16-414 7,000 -

Total Emergency Management Preparedness 58,768 Pass-Through from Florida Division of Emergency Management:

Emergency Food and Shelter National Board Program 97.024 LRO #163600-013 1,002 - Emergency Food and Shelter National Board Program 97.024 LRO #163600-012 7,028 -

Total Emergency Food and Shelter National Board Program 8,030 Homeland Security Grant Program 97.039 08DS-60-09-36-01-215 21,207 - Homeland Security Grant Program 97.039 10-DS-39-07-38-01-39 2,396 -

Total Homeland Security Grant Program 23,603 Total Department of Homeland Security 90,401

TOTAL EXPENDITURES OF FEDERAL AWARDS 1,980,808$



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CFDA GrantFederal/State agency CSFA Contract Transfers toPass-Through Entity Number Number Expenditures Subrecipients

STATE FINANCIAL ASSISTANCEOffice of the Governor:Pass-Through from Office of Tourism, Trade, and Economic Development:

Enterprise Florida, Inc. - Encroachment Preventionand Sustainability 31.003 DIG 11-05 13,111$ -

Enterprise Florida, Inc - Noise Study 31.003 DIG 11-11 5,751 - Total Office of the Governor 18,862

Florida Department of Environmental Protection:Cooperative Collection Center Grant 37.007 SO495 15,162 - Small County Consolidated Waste Grant 37.012 116SC 70,588 - Pass-Through South Florida Water Management District:

Statewide Surface Water Restoration and Wastewater Projects 37.039 OT050887 99,513 - Statewide Surface Water Restoration and Wastewater Projects 37.039 LP8927 454,539 -

Total Statewide Surface Water Restoration and Wastewater Projects 554,052 - Total Florida Department of Environmental Protection 639,802

Florida Department of State & Secretary of State Division of Library & Information Services:State Aid to Libraries 45.030 09-ST-18 2,213 - State Aid to Libraries 45.030 11-ST-17 252,380 - State Aid to Libraries 45.030 08-ST-19 24,800 -

Total Florida Department of State, Division of Library and Information Services 279,393

Florida Department of Community Affairs:Emergency Management Programs 52.008 11-FG-15-07-38-01 77,043 - Emergency Management Programs 52.008 12-BG-__-07-38-028 21,156 -

Total Florida Department of Community Affairs 98,199

Florida Housing Finance Corporation:State Housing Initiatives Partnership (SHIP) Program 52.901 N/A 597,775 - Hurricane Housing Recovery Program 52.902 N/A 27,763 -

Total Florida Housing Finance Corporation 625,538

Florida Department of Transportation:State Highway Project Reimbursement 55.023 414509 2 38 1 16,770 - State Highway Project Reimbursement 55.023 414512 2 38 01 10,347 - State Highway Project Reimbursement 55.023 412644 1 38 01 18,622 - State Highway Project Reimbursement 55.023 414510 1 38 01 5,410 -

Total Florida Department of Transportation 51,149

Florida Fish and Wildlife Conservation Commission:Waterway Marker Replacement 77.006 10244 31,216 -

Total Florida Department of Management Services 31,216

TOTAL STATE FINANCIAL ASSISTANCE 1,744,159$

HIGHLANDS COUNTY, FLORIDA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL

AWARDS AND STATE FINANCIAL ASSISTANCE FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2011

(244)

NOTE 1 - GENERAL The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance presents the activity of all federal and state financial award programs of Highlands County, Florida (County). The County reporting entity is defined in Note 1 to the County’s basic financial statements for the year ended September 30, 2011. All federal financial awards received directly from federal agencies as well as federal financial awards passed through other government agencies are included in the schedule. NOTE 2 - BASIS OF ACCOUNTING The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance is presented using the modified accrual basis of accounting for awards recorded in governmental fund types and the accrual basis of accounting for awards recorded in the proprietary fund types which are described in Note 1 to the County’s general purpose financial statements for the year ended September 30, 2011. NOTE 3 - CONTINGENCIES Grant monies received and disbursed by the County are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the County does not believe that such disallowances, if any, would have a material effect on the financial position of the County. As of March 7, 2012, there were no material questioned or disallowed costs as a result of grant audits in process or completed.

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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

Board of County Commissioners Sebring, Florida We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Highlands County, Florida (County) as of and for the year ended September 30, 2011, which collectively comprise the County’s basic financial statements and have issued our report thereon dated March 7, 2012. 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses as defined above.

Board of County Commissioners Sebring, Florida

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Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the County in a separate letter dated March 7, 2012. This report is intended solely for the information and use of the Board of County Commissioners, management, federal and state awarding agencies, and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.



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INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE

A DIRECT AND MATERIAL EFFECT ON EACH MAJOR FEDERAL PROGRAM AND STATE PROJECT AND ON INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL

Board of County Commissioners Highlands County, Florida Compliance We have audited Highlands County, Florida’s (County) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement, and the requirements described in the Department of Financial Services’ State Projects Compliance Supplement, that could have a direct and material effect on each of the County’s major Federal programs and state projects for the year ended September 30, 2011. The County’s major federal programs and state projects are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs and state projects is the responsibility of the County’s management. Our responsibility is to express an opinion on the County’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; and Chapter 10.550, Rules of the Auditor General. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the County’s compliance with those requirements. In our opinion, the County complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs and state projects for the year ended September 30, 2011.

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Internal Control Over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs and state projects. In planning and performing our audit, we considered the County's internal control over compliance with the requirements that could have a direct and material effect on a major federal program or state project to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control over compliance that we consider to be significant deficiencies as described in the accompanying schedule of findings and questioned costs as item 2011-01. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program or state project that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. The County’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the County’s responses and, accordingly, we express no opinion on the responses. This report is intended solely for the information and use of management, the Board of County Commissioners, others within the entity, and federal and state awarding agencies and is not intended to be and should not be used by anyone other than these specified parties.



HIGHLANDS COUNTY, FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS-

FEDERAL PROGRAMS AND STATE PROJECTS YEAR ENDED SEPTEMBER 30, 2011

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SECTION I – SUMMARY OF AUDITOR’S RESULTS

1. The type of report issued on the financial statements: Unqualified opinion 2. Internal control over financial reporting: Material weaknesses identified None reported Significant deficiencies identified that are not considered to be material weaknesses None reported 3. Noncompliance material to the financial statements noted: None reported 4. Internal control over major programs: Material weaknesses identified None reported Significant deficiencies identified that are not Considered to be material weaknesses Yes 5. Type of auditor’s report issued on compliance for major programs: Unqualified opinion 6. Any audit findings which are required to be reported under Section 510(a) of Circular A-133 or Chapter 10.650, Rules of the Auditor General: Yes 7. Major Federal programs:

CFDA # Home Investment Partnerships Program 14.239 AARA - Highway Planning and Construction 20.205 Healthy Families 93.558

8. Major state projects: CSFA #

Istokpoga Residential Canal Maintenance 37.039 State Housing Initiatives Partnership (SHIP) Program 52.901

9. Dollar threshold used to distinguish between Type A and Type B programs for Federal programs and state projects: $300,000 10. Auditee qualified as low-risk auditee under OMB Circular A-133? No


FEDERAL PROGRAMS AND STATE PROJECTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

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SECTION II – FINANCIAL STATEMENT FINDINGS

No significant deficiencies, material weaknesses or instances of noncompliance related to the financial statements were noted.

SECTION III – FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

2011-01 – Grant Administration CFDA 14.239 – U.S. Department of Housing and Urban Development – Home Investments Partnership CSFA 52.901 – Florida Housing Finance Corporation – State Housing Initiatives Partnership Criteria: Each federal program and state project should be administered by a grant manager with knowledge of the grant’s compliance requirements. Condition: Administrative expenditures reported for the State Housing Initiatives Partnership (SHIP) grant were not reconciled to the accounting records. County staff was unaware of the methodology used to derive and report the administrative expenditures. During the course of the audit, the County’s consultant was able to reconcile the administrative expenditures reported and determined that the amounts reported were within the allowable amount under the grant. Match amounts reported on HOME grant reports were incorrect. The County has provided match in excess of the grant requirement; therefore, the County is in compliance with the grant agreement. The instances noted above were undetected during the year due to lack of review and supervision of reports by a grant manager. Questioned Costs: None Context: SHIP and HOME compliance requirements were tested as part of the Single Audit of the County. Effect: The County may not comply with program requirements, and the noncompliance may remain undetected. Cause: The Housing Department staff was restructured. Current staffing levels provide daily administration of the programs but do not allow for supervision and the technical understanding needed to ensure compliance with the grants.


FEDERAL PROGRAMS AND STATE PROJECTS (CONTINUED) YEAR ENDED SEPTEMBER 30, 2011

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SECTION III – FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE (CONTINUED)

2011-01 – Grant Administration (Continued) Recommendation: We recommend designating an individual to directly oversee the SHIP and HOME grants. The individual should have experience in grant management or be provided training in grant management and compliance requirements. Management Response: Management Concurs. The Board will hire an outside firm with experience in grant management, reporting, and compliance to oversee SHIP and HOME grants. The Firm hired will also work as necessary with Board staff assigned to SHIP and HOME grants.

HIGHLANDS COUNTY, FLORIDA SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


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2010-02: Preparation of the Schedule of Expenditures of Federal Awards and State Financial Assistance CSFA 45.030 – Florida Department of State – State Aid to Libraries CSFA 52.901 – Florida Housing Finance Corporation – State Housing Initiatives Partnership Condition: Our audit procedures identified material misstatements in the amount of expenditures reported on the Schedule for the State Aid to Libraries grant and the State Housing Initiatives Partnership grant. Recommendation: Internal controls related to grant reporting should be reviewed to determine procedures that can be implemented to ensure the County has the ability to properly identify and report all grant expenditures. We also recommend developing a process so that an individual other than the preparer of the Schedule reviews the Schedule prior to it being submitted for audit. Current Status: No similar findings were noted in the 2011 audit.

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