st. johns county, florida auditor general ... rpts/2016 st...september 30, 2016 prepared by: clerk...

ST. JOHNS COUNTY, FLORIDA AUDITOR GENERAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016

Prepared by:

CLERK OF COURTS FINANCE DEPARTMENT

Hunter S. Conrad Clerk of Court and Comptroller Richard A. MacDonald, Jr. Finance Director

ST. JOHNS COUNTY, FLORIDA COMPREHENSIVE ANNUAL

FINANCIAL REPORT FOR THE FISCAL YEAR ENDED

SEPTEMBER 30, 2016

Prepared by: CLERK OF COURTS FINANCE DEPARTMENT

Hunter S. Conrad Clerk of the Circuit Court & Comptroller

Richard A. MacDonald, Jr. Chief Financial Officer

ST. JOHNS COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED SEPTEMBER 30, 2016

TABLE OF CONTENTS

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INTRODUCTORY SECTION

Page Letter of Transmittal 1 Principal County Officials 11 Certificate of Achievement 12 Organizational Chart 13

FINANCIAL SECTION

Independent Auditors’ Report 15 Management’s Discussion and Analysis 19 Basic Financial Statements County-wide Financial Statements Statement of Net Position 33 Statement of Activities 34 Fund Financial Statements Balance Sheet-Governmental Funds 35 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 36 Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds 37 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 38 Statement of Net Position-Proprietary Funds 39 Statement of Revenues, Expenses and Changes in Fund Net Position- Proprietary Funds 41 Statement of Cash Flows-Proprietary Funds 43 Statement of Fiduciary Net Position-Fiduciary Funds 45 Statement of Changes in Fiduciary Net Position- Other Post-Employment Benefits Trust Fund 46 Notes to the Financial Statements 47 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balances- Budget and Actual - General Fund and Major Special Revenue Funds 98



TABLE OF CONTENTS

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Page

Notes to Budgetary Comparison Schedules 102

Schedules of Proportionate Share of Net Pension Liability 104

Schedules of Employer Contributions 105

Schedules of Funding Progress and Employer Contributions - Other Post-Employment Benefits 106

Supplementary Information

Combining and Individual Fund Statements and Schedules Combining Balance Sheet- Board and Officer General Fund Sub-funds 108

Combining Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and

Actual-Board and Officer General Fund Sub-funds 111

Nonmajor Governmental Funds Descriptions 116

Governmental Funds Combining Balance Sheet-Nonmajor Governmental Funds 121 Combining Statement of Revenues, Expenditures and Changes In Fund Balances-Nonmajor Governmental Funds 137 Schedule of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-Nonmajor Governmental Funds 153

Governmental Activities-Internal Service Funds Descriptions 183 Internal Service Funds

Combining Statement of Net Position-Internal Service Funds 184 Combining Statement of Revenues, Expenses and Changes in Fund Net Position-Internal Service Funds 185 Combining Statement of Cash Flows-Internal Service Funds 186



TABLE OF CONTENTS

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Page

Fiduciary Funds Descriptions 187 Combining Statement of Fiduciary Net Position – Agency Funds 188

Supporting Schedules Combining Statement of Changes in Assets and Liabilities – Agency Funds 190 Board of County Commissioners Schedule of Expenditures by Department – Budget and Actual 193

STATISTICAL SECTION

Descriptions 197 SCHEDULE 1 Net Position by Component, Last Ten Fiscal Years … 198 SCHEDULE 2 Changes in Net Position, Last Ten Fiscal Years 200 SCHEDULE 3 Fund Balances, Governmental Funds, Last Ten Fiscal Years 204 SCHEDULE 4 Changes in Fund Balances, Governmental Funds, Last Ten Fiscal Years 206 SCHEDULE 5 Assessed Value and Actual Value of Taxable Property, Last Ten Fiscal Years 208 SCHEDULE 6 Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years 209 SCHEDULE 7 Principal Property Taxpayers, Current Year and Nine Years Ago 211 SCHEDULE 8 Property Tax Levies and Collections, Last Ten Fiscal Years 212 SCHEDULE 9 Ratios of General Bonded Debt Outstanding, Last Ten Fiscal Years . 213 SCHEDULE 10 Ratios of Outstanding Debt by Type, Last Ten Fiscal Years 214 SCHEDULE 11 Pledged-Revenue Coverage, Last Ten Fiscal Years, 216 SCHEDULE 12 Legal Debt Margin Information, Last Ten Fiscal Years 220 SCHEDULE 13 Demographic and Economic Statistics, Last Ten Fiscal Years 221 SCHEDULE 14 Principal Employers, Current Year and Nine Years Ago 222 SCHEDULE 15 Actual Full-Time Equivalent County Government Employees by Function, Last Ten Fiscal Years 223 SCHEDULE 16 Operating Indicators by Function, Last Ten Fiscal Years 225 SCHEDULE 17 Capital Asset Statistics by Function, Last Ten Fiscal Years 227



TABLE OF CONTENTS

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SINGLE AUDIT

Page Schedule of Expenditures of Federal Awards and State Financial Assistance 229

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance 232

Independent Auditor’s Report on Compliance for Each Major Federal Program and State Project; Report on Internal Control Over compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General; and Report on the Schedule of Federal Awards and State Financial Assistance 233 Schedule of Findings and Questioned Cost 236

Response to Findings 239

Independent Auditor’s 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 240 Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes 242 Independent Accountant’s Report on Compliance with Section 365.172(10), and 365.173(2)(d), Florida Statutes 243 Summary Schedule of Prior Audit Findings 244

MANAGEMENT LETTER

Management Letter 245

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September 20, 2017 The Honorable James K. Johns, Chair Board of County Commissioners 500 San Sebastian View St. Augustine, FL 32084 Dear Chairman Johns: In accordance with Section 218.39 of the Florida Statutes, we are pleased to submit to you, the Board of County Commissioners and the citizens of St. Johns County, the Comprehensive Annual Financial Report of St. Johns County, Florida, for the fiscal year ended September 30, 2016. This report has been prepared by the Comptroller’s Office which is a department of the Clerk of the Circuit Court. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including disclosures, rests with the Clerk of the Circuit Court as Chief Financial Officer of St. Johns County. It is our belief that the data contained in this report is accurate in all material respects and is shown in a manner that fairly presents the financial position of the County at September 30, 2016 and the results of its operations and its cash flows. The County 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, the reliability of financial records for preparing financial statements, and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits. The evaluation of this relationship is a responsibility of County management. We believe these controls adequately safeguard County assets, as well as provide reasonable assurance of properly recording transactions. The independent accounting firm of Carr, Riggs & Ingram, LLC, whose report is included herein, has audited the County’s Financial Statements. The goal of the independent audit was to provide reasonable assurance that the financial statements of the County are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by County management and evaluating the overall financial statement presentation. Based upon the audit, Carr, Riggs & Ingram, LLC concluded that there was a reasonable basis for rendering an unmodified opinion that the County’s financial statements are fairly presented in conformity with accounting principles generally accepted in the United States of America for the fiscal year ended September 30, 2016.

Hunter S. Conrad, Esq. St. Johns County Clerk of the Circuit Court and Comptroller

4010 Lewis Speedway, Saint Augustine, Florida 32084 Office: (904) 819-3600 Fax: (904) 819-3661

The Honorable James K. Johns, Chair September 20, 2017

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Additionally, in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principle and Audit Requirements for Federal Awards (Uniform Guidance), as well as Section 215.97 of the Florida Statutes, the independent audit of the County financial statements was part of mandated “Single Audits” designed to meet the special needs of federal and state grantor agencies. The standards governing these engagements require the auditor to report on the County’s internal controls over compliance, and legal compliance requirements as they specifically relate to federal and state awards. These reports are presented in the section entitled Single Audit. Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The MD&A for St. Johns County can be found in the financial section immediately following the report of independent auditors.

GOVERNMENT PROFILE St. Johns County was established in 1821. St. Augustine, which was the County seat, was founded over 400 years ago by Spanish explorers and is the nation’s oldest city. The County encompasses approximately 608 square miles and is located in the northeast region of the State of Florida directly south of the City of Jacksonville, and is bordered on the west by the St. Johns River, on the south by Flagler County, and on the east by the Atlantic Ocean. The Board of County Commissioners of St. Johns County (“Board”) is organized under Article III of the Constitution of the State of Florida, which empowers the creation of counties as a political subdivision of the State. St. Johns County is a non-chartered County and has the power of self-government as provided by general and special law through County ordinances. Under the Constitution of the State of Florida, the offices of Clerk of the Circuit Court, Property Appraiser, Sheriff, Tax Collector and Supervisor of Elections are specifically authorized and empowered to provide their functional services independently of the Board, and they maintain separate accounting records and budgets. The County School Board is a separately organized taxing entity not under the jurisdiction of the Board of County Commissioners and has specific legislative authority granted by the Constitution. The Board of County Commissioners is composed of five members, one from each district within the County. However, each commissioner is elected Countywide. The Board serves as the taxing authority for those entities authorized by the Constitution of the State of Florida including the constitutional officers and special taxing districts that are authorized under legislation and approved by the Board. Dependent County taxing districts also come under the purview of the Board’s taxing limitation. The County is financially accountable for an organization when the County appoints a voting majority of the organization’s governing body and is able to impose its will on the organization; there is a potential for the organization to provide a financial benefit or impose a financial burden on the County; or the organization is fiscally dependent on the County. The St. Johns County Housing Finance Authority, St. Johns County Industrial Development Authority and the St. Johns County Educational Facilities Authority are included as component units in the County’s reporting entity either because of the significance of the operational relationship or the County is financially accountable for the component unit. Furthermore, the County has determined that the St. Johns County School District, Anastasia Mosquito Control District, the St. Augustine Airport Authority, and the St. Johns Water Management District do not meet the criteria for inclusion in this reporting entity.


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The County budget process begins in January with the Capital Improvement Plan. This Plan not only identifies important capital project funding needs, but may also impact the County debt management plan. The results of this process determine which capital programs appear to be under-funded over the five-year period of the plan. While additional debt financing may be evaluated to resolve the funding requirements, available resources through additional taxes, inter-governmental revenues in the form of additional gas taxes and grants, and possible increases in charges for services are also reviewed and evaluated for consideration. Next, the Office of Management and Budget conducts an operating budget review. The process takes place from March through August and includes public meetings with citizen participation. All County department and agency expenditures, accomplishments and objectives are reviewed. In particular, additional personnel, vehicles, computer equipment and software, and capital outlay appropriation requests are scrutinized. The final adoption of the County budget occurs in September after two advertised public hearings. There are also legal and policy controls over the County's budget. One of the major legal controls establishes the fund as the budget level that actual spending cannot exceed the appropriated (budgeted) amount. This is the legal level of control for the offices of Clerk of the Circuit Court, Property Appraiser, Sheriff, Tax Collector and Supervisor of Elections. The County, however, has adopted, by local ordinance, a more restrictive budget policy requiring County Commission action to change the total of a department's budget. This establishes the department as the legal level of control. As a matter of policy, the County includes in its accounting records a detailed version of each fund's budget. This policy is referred to as formal budgetary integration. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America, and all budgeted amounts lapse at year-end. This means authorization for the use of funds must be restated in the subsequent year's budget and funds are not "rolled over" if not spent. Please refer to Note 2 for further information regarding the dates associated with the property tax calendar, which is an integral part of the budget process, as well as information pertaining to the legal level of control for budget amendments. Finally, the Board enacted Ordinance 96-70. This ordinance established the office of the County Administrator, who serves as an appointed official for the Board and provides for the day-to-day administration of County government as specifically authorized by the Board.

ECONOMIC CONDITION AND OUTLOOK United States Census data indicates that St. Johns County recovered better than Florida overall from 2010 to 2016, after the “Great Recession.” St. Johns County continues to be one of the fastest growing counties in Florida and in the nation. In that five-year timeframe, the county’s population grew 19.4% from 190,039 to 226,640, ranking as the 15th fastest-growing county in the U.S. by percentage of population growth. Since 2000, population has grown 84%. Looking forward, economic growth projections show continued momentum is anticipated for the next several years. As a result, the local economic outlook continues to remain positive. Contributing to St. Johns County’s popularity are noteworthy attributes such as the county’s low tax structure, top-ranked public school system, low overall cost of living, and unique natural amenities – all which make the county a highly-desirable location in Northeast Florida to live, work and play. Flagler College, located in St. Augustine, rose to the #2 ranking in the U.S. News & World Report's Best Colleges guide for the Best Regional Colleges in the South.


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For the fifth year in a row, a University of Wisconsin study ranked St. Johns County Florida’s Healthiest County. Other noteworthy accolades include St. Johns County and St. Augustine being selected by:

CNN Money Magazine– as #5 of Top 25 Counties for Best Places to Live: Where the Jobs Are

U.S. News & World Report – as One of the Ten Best Places to Live in the United States Forbes Magazine – as One of the Ten Prettiest Towns in the United States Coastal Living – as One of America’s Ten Happiest Seaside Towns Liveability.com – as #4 of Top 100 Best Small Towns in the U. S. Travel + Leisure – as #4 in America’s Favorite Towns

Business locations within the county are connected to multi-modal transportation networks through Interstate 95 and U.S. 1 corridors, which provide convenient access to regional assets such as Jacksonville International Airport and JAXPORT, as well as local assets like the Northeast Florida Regional Airport in St. Augustine. Continued improvements to roadway infrastructure such as the 9B project linking St. Johns County to Jacksonville and widening of CR 210 are driving local economic development interests. St. Johns County Commission’s philosophy is to be a pro-business community encouraging a balance in economic growth, environmental stewardship and quality of life. Historically, the county’s primary economic sectors have been agriculture, tourism and retail, which correlate to the state’s economic drivers. As growth continues, the county has made a concerted effort to diversify its economic base and promote high-wage job creation for local residents through the growth of existing businesses and attraction of new businesses to the county. The Board of County Commissioners approved the creation of a County Economic Development Department in 2011 to implement a proactive, sustained effort to attract and retain businesses and work cooperatively with community partners to achieve this goal. This department is a collaborative partner with Enterprise Florida, having been designated by the County Commission as the primary designated economic development office for St. Johns County. The county maintains membership in JAXUSA Partnership to leverage resources with the regional agency promoting Northeast Florida on a national scale to enhance economic development.

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St Johns County Population by Fiscal Year(in thousands)


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Additionally, the county contracts with the St. Johns County Chamber of Commerce to provide support for businesses interested in locating and expanding into the county, and the University of North Florida Small Business Development Center (SBDC), who provides technical assistance to entrepreneurs and small businesses. St. Johns County’s SBDC continues to produce impressive results and has assisted 1,634 individuals and helped open 140 businesses and created/retained 947 jobs since opening in October, 2009. Business prospect activity is solid and it is anticipated to maintain positive momentum into 2017. The county maintains a competitive business incentive program to attract new business development and enhance existing business expansion within the county. The county is also included in the JAXPORT Foreign Trade Zone 64 (FTZ) service area. Job growth increased in 2016, resulting in a continuing decline in the local unemployment rate. St. Johns County has consistently ranked among the state’s lowest unemployment rates in recent years. As of September 2016, the county unemployment rate was 3.9%, and has stayed relatively stable within the last 12 months. The local rate remained lower than the state average of 4.7% and national average of 5.0%, and this trend is expected to continue into 2017. The county’s labor force has grown over 20,000 people from 97,483 in 2010 to 117,681, as of September 2016. St. Johns County has attracted a well-educated population, with statistics reflecting 94.4% of residents (age 25+) having a high school education and 73.4% having attained post-secondary education, including 42% having obtained a bachelor’s degree or higher. The county’s lower-than-average unemployment rate is partly attributed to the high level of resident’s educational attainment. This local employment base continues to provide an educated workforce for local employers and the growing business sector. A correlating factor of a well-educated population is a higher than average household income. The county maintains a relatively wealthy demographic profile with an estimated 2015 median household income of $66,194 (US Census), and 2015 per-capita income of $60,441 (BEA). Local job growth may be attributed to the continued high rate that single family residential permits are being issued, as well as increasing commercial activity. In Northeast Florida, homebuilders secured more permits in St. Johns County than any other regional county again in fiscal year 2016, marking the fifth year in a row that this milestone has been achieved. In FY 2016, the County issued 3,215 residential permits, which represents an 18% increase over 2015. In one month alone (July), St. Johns County issued 328 single-family building permits, 70% more than Jacksonville (Duval County). It is anticipated that this trend will continue into 2017. Additionally, 1,119 commercial permits were issued, which is about the same number as 2015. However, commercial valuation for permitted projects increased more than 61%, which is a positive indicator for future commercial tax base growth. Total building market valuation for permits issued in FY 2016 reflected a 35% increase in total valuation at $1,340,046,491. Total county sales tax revenue increased 7.7% in FY 2016, helped by continued population and tourism growth. Overall, sales tax revenue generated per capita increased from $74.05 in FY 2015 to $77.46 in FY 2016. A significant contributor to the county’s residential growth is Nocatee, where more than 4,200 homes have been sold since the development’s inception. It ranks as the nation’s third top-selling master-planned community in the United States for the third year in a row. Additionally, several new master-planned communities propose to add thousands of new houses in northern St. Johns County over the next decade as residential development continues to flourish within the county.


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Two recently approved residential communities with significant commercial development opportunities include Twin Creeks and Shearwater in northern St. Johns County. Located along CR 210 just east of I-95, Twin Creeks is a shovel-ready 1,000+ acre mixed-use project featuring over 2 million square feet of retail, commercial, office and industrial uses, along with 3,000 residential units. Dirt work is underway and new homes are under construction. Twin Creeks will also feature a unique 14-acre Crystal Lagoons amenity ringed by sandy beaches and mixed-use developments for retail shops and residents. The lagoon is scheduled to open in summer 2017. Also along CR 210 a few miles west of I-95, Shearwater is well underway, having constructed hundreds of homes since its approval in 2015. Build-out will consist of 2,000 homes on 1,500 acres and 250,000 sq. ft. commercial/ retail space. Retail development is starting to make headlines in St. Johns County. Vacancy rates for retail space within the county were the lowest in the metro area, at 2.6 to 2.8 %. Large retail projects announced in the region are led by the 1,600-acre Durbin Park center on the county’s northern border. Since the County Commission approved the project in 2015, the landowner Gate Petroleum has announced a joint venture with premier retail developer Gatlin Development to construct the first two phases of the project, consisting of nearly 2 million square feet of retail space. Phase 1 is anticipated to open with 700,000 square feet of retail, anchored by Walmart Super Center and Home Depot stores in mid-2018, and phase 2 is slated to open in 2020. Durbin Park is located primarily west of I-95 (9B extension) and south of Race Track Road, and is proposed to encompass 2.8 million square feet office, 2.4 million square feet retail, 1,000 multi-family units and 350 hotel units phased out over 20 years. This property constitutes the largest area planned for intensive commercial development in the county and is uniquely situated to provide commercial services and employment opportunities, while generating significant ad valorem and sales tax revenues for the county. Other retail projects approved in 2016 include two developments at the intersection of CR 210 and CR 2209 (St. Johns Parkway). The Forum at Greenbriar, located at the SE corner of the intersection is a 14-acre development featuring 67,000 square feet targeting boutique retail and fine dining options. The NW corner will consist of a 172,000 square-foot center on 38 acres. Office developers are also confident in the St. Johns County market with the first speculative Class A office building having been constructed in Northeast Florida since the recession. The 62,750 square foot property is now available for lease in Nocatee, providing opportunity for new office locations in a tight market with less than a 4% vacancy rate. Some area real estate experts have indicated to the media that there is a shift underway through which the center of the area’s office market is shifting south from J. Turner Butler Blvd. in Jacksonville (Duval County). Citing the population boom and continued residential development in northern St. Johns County, this activity will lead to more office development south of Flagler Center (in southern Duval County). They anticipate that employers are going to follow where their workers live. Real estate sources also predict the continued housing market boom in northern St. Johns County will push development of industrial facilities south, citing low industrial space vacancy in southern Duval County, combined with rising land costs. They acknowledge that many industrial users in southern Duval County serve home builders and they anticipate this trend will continue as homebuilding stays strong in St. Johns County. Several commercial projects were announced or commenced in 2016. The most significant project activity in St. Johns County is Northrop Grumman’s Aircraft Integration Center of Excellence. The first phase of the $80 million, 361,000 sq. ft. facility is complete and the second phase is underway, anticipated to be complete in late 2017. The company will employ 1,400, including the addition of 400 new high-wage manufacturing jobs announced in conjunction with the project.


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Other industrial projects were announced in late 2016, including a local expansion for Burkhardt Distributing Company and relocation of MAS-HVAC corporate headquarters and manufacturing operation. St. Augustine Shipyard, a marina retail development underway on the west bank of the San Sebastian River in St. Augustine, completed a large dry-dock boat storage facility and a flex-office building. The commercial development plans include restaurants, offices, shopping, lodging, and a marina. As part of a public-private partnership (P3) agreement, Nopetro and the county opened a compressed natural gas (CNG) fueling facility. The new station serves both county-owned commercial vehicles and the public at-large. Northeast Florida Regional Airport completed a new $2M terminal building to accommodate increased passenger service by Frontier Airlines and Via Airlines. Frontier flew to Philadelphia, PA and Chicago, IL (O’Hare) in 2016, and Via enhanced their passenger service to Charlotte, NC, going from seasonal to year-round service. Hotel interest remains strong with increased tourism throughout the county. In St. Augustine Beach, a new Courtyard by Marriott opened, just as a new Guy Harvey Outpost Resort begins its redevelopment of the Holiday Isles Oceanfront Resort. Embassy Suites is also underway on construction of an oceanfront property adjacent to the county pier. In downtown St. Augustine, the Wyndham Garden Sebastian Hotel opened along U.S. 1. On Vilano Beach, a local developer received approval to construct Hotel Vilano, a 3-story, 65-room property in the Vilano Town Center, offering new accommodations to complement the recently renovated Hampton Inn and Magic Beach Motel. Two significant Publix-anchored redevelopment projects were completed, including Sawgrass Village in Ponte Vedra and the Moultrie Square shopping center at 4255 U.S. 1 South, just north of St. Augustine Shores. Publix also announced that they will open a new store in Palencia at the former Food Lion location, anticipated to open in 2018. Retail and restaurant activity continues to flourish. In 2016, the county welcomed Lowe’s Home Improvement on their long-awaited new store south of SR 312 along U.S. 1. This is the first Lowe’s store to open in St. Johns County and represents another successful public-private partnership involving the county. Family Dollar opened a new location on West King Street, representing the first national retailer to establish a presence in West Augustine. PGA Tour golfer Graeme McDowell and his partners opened Nona Blue Modern Tavern, a new upscale restaurant at the redeveloped Sawgrass Village in Ponte Vedra. St. Johns County is also seeing continued interest in assisted living and memory care facilities. Silver Creek opened in late 2016 on State Road 207, and the Symphony in St. Augustine opened along State Road 16, indicating continued strength in this market segment.


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FINANCIAL PLAN Goals and Objectives Prudent budgeting, cash management and funding additional resources through debt structuring has allowed the County to meet emerging infrastructure needs while still improving and providing the resources necessary to meet operational and program goals established by the various departments of the Board of County Commissioners. The Board identified and updated their goals and objectives in 2013 and they continued during 2016. They are:

Promote Economic Development. The Board has made this goal its top priority. The goal continues to be twofold: attract new business and industry to the County and help existing businesses and industries prosper. An Economic Development Director was hired in 2012 to help foster a more aggressive and coordinated effort. In 2016, St. Johns County’s unemployment rate was 3.6% as compared to the State of Florida rate of 4.7% and the National rate of 4.9%. The County was also ranked fifth in the nation by CNN and Money Magazine for job creation. Promote the County’s Health, Safety, and Welfare. The transition to a professional firefighter force began in 1997 with over 229 positions added since that time. The County Sheriff’s budget requests have also been consistently addressed by the Board. A new 800-Megahertz emergency radio communications system was completed. A new fire station was opened during 2015 in Nocatee. Nocatee has been ranked as the nation’s third best-selling master-planned community.

Address the County’s Long-term Financial Stability. The Board continues to prioritize the following objectives: County debt restructuring, consideration of new revenue sources, maintaining equitable employee compensation, continued effective and efficient delivery of County services, and contracting for lower cost.

Address the County’s Deferred and Emerging Infrastructure Needs. Several years of budget reductions has resulted in deferred infrastructure needs particularly for transportation infrastructure and pavement management. In addition, emerging federal and state water quality legislation may require significant capital outlays for improvement. Participate in Regional Initiatives. Partnering with other northeast Florida counties or other governmental entities helps coordinate regional efforts and can result in better efficiencies.

Maintain and Enhance the County’s Quality of Life. The Board continues to prioritize the County’s quality of life, including but not limited to: County beaches, parks, libraries and bicycle/hiking trails. A New York Times national study ranked the County first in Florida and in the top 4% nationally for its quality of living. Protect and Promote the County’s Environment. The County’s Environmental Services division was created in 2009 within Growth Management. In addition, water quality improvement remains a continued focus as well as initiating the conversion of a substantial portion of the County vehicle fleet to compressed natural gas (CNG) as an environmental improvement initiative that also will generate significant fuel cost savings. Recent environmental initiatives include water quality improvement and stormwater management as well as the conversion of many County vehicles to compressed natural gas. Enhance County Beautification and Appearance. The Board’s emphasis is the enhancement of County entryways, signage, and scenic corridors.


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Emphasize Community Redevelopment. The Board has emphasized other communities in the County in need of redevelopment or economic revitalization, such as Hastings and Armstrong, in addition to the Community Redevelopment Agency of St. Johns County (the CRA), as formed in 2002 and 2003, which constitutes West Augustine, Vilano Beach, and Flagler Estates. Enhance Communication with Community. Improving communications and citizen services continues as a top objective. Every County department has the objective of improving service and operating more efficiently. County Administration in particular is focusing on enhancing communications.

The Plan The Plan is a set of guidelines for the management of funds or financial resources. It provides for the effective planning of government expenditures and services, revenues and the long term financing of capital improvements and infrastructure. It helps ensure that the County is able to meet its short-term and long-term objectives and helps prevent financial problems or emergencies from unnecessarily changing previous policy decisions. Another primary purpose is to provide guidelines for the issuance and management of debt. Proper debt management promotes the accomplishment of service objectives, contributes to financial health and stability, and assures access to debt markets to meet both scheduled and unscheduled financing needs. The decision to issue debt is made on a case-by-case basis and only after careful and timely evaluation of all relevant factors. Factors, which are considered, are:

Legal constraints on debt capacity and various financing alternatives Constraints contained in currently issued debt offerings The urgency of the capital requirements related to the economic cost of delays The willingness and financial ability of taxpayers to pay the capital improvements Evaluating the balance between internal and external funding mechanisms Current interest rate climate and other market considerations The County’s financial condition The type, availability and stability of revenues pledged for debt repayment The type of debt anticipated to be issued Whether or not the project to be financed creates ongoing operating expenditures

that will be supported by available revenue resources

Additionally, it provides for the services of an outside financial advisor to periodically evaluate the County’s debt management strategies, as well as the County’s debt capacity regarding various intergovernmental and local revenue resources. Another Plan purpose is to provide policies and guidelines for the investment of the County’s limited financial resources. In accordance with Section 218.415, Florida Statutes, the County adopted Ordinance No. 2008-1, which describes the various investment products allowed under the ordinance for County’s surplus assets (“Surplus Fund”) and the Post-Employment Welfare Benefits Program Trust (“Trust Fund”) for assets held on behalf of county retirees for other post-employment benefits than pensions. Additionally, Resolution No. 08-151 was adopted to apply rules pertaining to the Trust Fund. Finally, Resolution No. 2001-58 pertains to the rules that apply to all financial assets of the Board and funds related to the issuance of debt. Funds held by state agencies (e.g., Department of Revenue) are not subject to the provisions of this policy. Additionally, neither policy includes any financial assets


under the direct control of any of the Constitutional Officers of St. Johns County. The policies become applicable at such time as direct control of the funds passes to the Board.

Relevant Financial Policies

Continued tight County budget guidelines for FY 2016 kept total budgeted operating expense increases generally at 3% except for expected increases in insurance and maintenance that largely had been deferred. Employee retirement rates as set by the State Legislature increased almost 13% for Special Risk (i.e. , Sheriff and Fire Rescue) employees. General pay increases of 3.6% were budgeted for the new County pay plan. Fund balance for the General Fund was again utilized to fund deferred maintenance.

The total budget for the County's Capital Improvement funds continues to be diminished. Once the new Public Works facility and combined Fire Station 5 and 11 are completed (the "15 Sales Tax Construction Projects Fund"), these Capital Improvement funds may be negligible by FY 2018.

AWARDS AND ACKNOWLEDGEMENTS

The Government Finance Officers Association of the United States and Canada ("GFOA") awarded a Certificate of Achievement for Excellence in Financial Reporting to St. Johns County for its Comprehensive Annual Financial Report for the year ended September 30, 2015. This was the twenty fourth consecutive year that the County has received this prestigious award. In order to be awarded a Certificate of Achievement, the County must publish an easily readable and efficiently organized comprehensive annual financial report. Th is report satisfies both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our cu rrent comprehensive annual financial report continues to meet the Certificate of Ach ievement Program's requirements, and it will be submitted to the GFOA to determine its eligibility for another certificate.

Additional ly, for the last twenty four years, the County Office of Management and Budget has also received the Distinguished Budget Presentation Award from GFOA for publishing a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device.

Acknowledgments. A Comprehensive Annual Financial Report of this nature could not have been prepared without the dedicated efforts from the staff of the Board of County Commissioners and each of the Elected Officials. Special thanks goes to the staff of the Comptroller's Office, the Office of Management and Budget and the Department of Economic Development. Each member of these departments has our sincere appreciation for their contributions made in the presentation of this report.

Additional ly, we would also like to thank the members of the County Commission for their leadership and support in planning the financial operations of the County in a responsible and progressive manner.

~~ Hunter S. Conrad ~~~9 Clerk of Court and Comptroller Chief Financial Officer

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MEMBERS OF THE BOARD OF COUNTY COMMISSIONERS

James K. Johns, Chair Henry Dean, Vice-Chair

John H. Morris Jeb E. Smith

Paul M. Waldron

CONSTITUTIONAL OFFICERS

David B. Shoar, Sheriff

Hunter S. Conrad, Clerk of Court Dennis Hollingsworth, Tax Collector Eddie Creamer, Property Appraiser

Vicky Oakes, Supervisor of Elections

COUNTY ADMINISTRATION

Michael D. Wanchick, County Administrator Joy Andrews, Assistant County Administrator for Community Services

Darrell M. Locklear, Assistant County Administrator for Operations

COMPTROLLER’S OFFICE

Richard A. MacDonald, Jr., Chief Financial Officer Michael Branson, Assistant Director

OFFICE OF MANAGEMENT AND BUDGET

Jesse Dunn, Director Wade Schroeder, Assistant Director

OFFICE OF ECONOMIC DEVELOPMENT

Melissa S. Glasgow, Director

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15

INDEPENDENT AUDITOR’S REPORT

The Honorable County CommissionersSt. Johns County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate discretely presented component unit and remainingfund information of St. Johns County, Florida (the “County”), as of and for the year ended September 30,2016, and the related notes to the financial statements, which collectively comprise the County's basicfinancial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includesthe design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement.

An audit involves performing procedures to obtain audit evidence supporting the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor’s judgment,including the assessment of the risks of material misstatement of the financial statements, whether dueto fraud or error. In making those risk assessments, the auditor considers internal control relevant tothe entity’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing an opinionon the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An auditalso includes evaluating the appropriateness of accounting principles used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

Carr, Riggs & Ingram, LLC4010 N.W. 25th PlaceGainesville, Florida 32606P.O. Box 13494Gainesville, Florida 32604

(352) 372-6300(352) 375-1583 (fax)www.cricpa.com

16

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business type activities, each majorfund, and the aggregate discretely presented component unit and remaining fund information of theCounty as of September 30, 2016, and the respective changes in financial position and cash flows, whereapplicable, thereof for the year then ended in accordance with accounting principles generally acceptedin the United States of America.Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’sdiscussion and analysis and the required supplementary information listed in the table of contents bepresented to supplement the basic financial statements. Such information, although not a part of thebasic financial statements, is required by the Governmental Accounting Standards Board, who considersit to be an essential part of financial reporting for placing the basic financial statements in anappropriate operational, economic, or historical context. We have applied certain limited procedures tothe required supplementary information in accordance with auditing standards generally accepted inthe United States of America, which consisted of inquiries of management about the methods ofpreparing the information and comparing the information for consistency with management’s responsesto our inquiries, the basic financial statements, and other knowledge we obtained during the audit ofthe basic financial statements. We do not express an opinion or provide any assurance on theinformation because the limited procedures do not provide us with sufficient evidence to express anopinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the County’s basic financial statements as a whole. The introductory section,combining and individual fund financial statements and schedules, and statistical section are presentedfor purposes of additional analysis and are not a required part of the basic financial statements. Thecombining and individual fund financial statements and schedules are the responsibility of managementand were derived from and relate directly to the underlying accounting and other records used toprepare the basic financial statements. The information has been subjected to the auditing proceduresapplied in the audit of the basic financial statements and certain additional procedures, includingcomparing and reconciling such information directly to the underlying accounting and other recordsused to prepare the basic financial statements or to the basic financial statements themselves, andother additional procedures in accordance with auditing standards generally accepted in the UnitedStates of America. In our opinion, the information is fairly stated in all material respects in relation tothe basic financial statements as a whole. The introductory and statistical sections have not beensubjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly, we do not express an opinion or provide any assurance on them.

17

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September20, 2017 on our consideration of the County’s internal control over financial reporting and on our testsof its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the County’s internalcontrol over financial reporting and compliance.

Gainesville, FloridaSeptember 20, 2017

p g p

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ST. JOHNS COUNTY, FLORIDA MANAGEMENT DISCUSSION and ANALYSIS For the year ended September 30, 2016

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MANAGEMENT’S DISCUSSION and ANALYSIS

This section of St. Johns County, Florida’s Comprehensive Annual Financial Report presents a narrative overview and analysis of the County’s financial performance during our most recent fiscal year, which ended September 30, 2016. It is designed to provide an objective and easy to read overview analysis of the County’s financial activities; significant financial issues; material deviations from the Financial Plan (budget); changes in the County’s financial position and individual fund concerns. We encourage readers to consider the information contained in this discussion in conjunction with additional information contained in our transmittal letter in the front of this report and the County’s financial statements. 1. Financial Highlights.

Total assets and deferred outflows of resources exceeded total liabilities and deferred inflows, which are reported as net position, by $1,464,809,703 as of September 30, 2016.

Unrestricted net position of $10,762,336 represents the amount that may be used to meet the County’s ongoing obligations to citizens and creditors.

Total net position of the County increased by $33,519,741. The net change in total governmental fund balance increased by $7,374,739. This is primarily

attributed to total revenues exceeding total expenditures by $4.3 million and the additional $3.1 million in other financing sources for additional debt issuance and capital lease purchases.

2. Overview of the Financial Statements. This discussion is intended to introduce St. Johns County, Florida’s basic financial statements. The basic financial statements are comprised of two kinds of statements that present different views of the County: (1) countywide statements, and (2) fund statements. The basic financial statements also include notes essential to a full understanding of both kinds of statements. This report also has a separate section for supplementary and statistical information in addition to the basic financial statements themselves as indicated below.

Summarized Detailed Information Information

Management Discussion

and Analysis

Basic Financial

Statements

Notes To the

Financial Statements

Fund Financial

Statements

Countywide Financial

Statements


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The first two statements are countywide financial statements that focus on the County as a whole and provide both long-term and short-term information about the County’s overall financial condition. These statements provide readers with a broad view of the County’s finances, similar to a private sector business. The remaining statements are fund financial statements that are similar to traditional governmental financial statements. These statements report on individual parts of the County’s operations and include more detail than the countywide statements.

A. Countywide financial statements. The countywide statements report on St. Johns County as a

whole using accounting rules very similar to those used by private companies. There are two countywide statements. The statement of net position combines and reports all of the County’s assets, deferred outflows, liabilities and deferred inflows. The statement of activities combines and reports all of the County’s revenues and expenses regardless of when cash is paid or received. These two financial statements demonstrate how the County’s net position has changed. Net position is the difference between total assets and deferred outflows of resources, and total liabilities and deferred inflows. It is one way of assessing the County’s current financial condition. Increases or decreases in net position are good indicators of whether the County’s financial health is improving or deteriorating over time. Other non-financial factors, such as diversity in the local economy, are important in evaluating the County’s overall financial condition.

The countywide financial statements are grouped into three categories:

Governmental Activities. Most of the County’s basic services are included here, such as police, fire, public works, recreation, and general administration. Property taxes, sales and gas taxes, and federal and state funding finance most of the cost of these activities.

Business-type Activities. The County and Ponte Vedra water and sewer utilities, solid waste, and convention center are classified here. In these activities, the County charges customer fees to cover all or a portion of the cost of providing these goods and services.

Component Units. These are other governmental units over which the County exercises influence, and are presented as separate columns in the countywide statements. The Component Units are as follows; the St. Johns County Housing Finance Authority, the St. Johns County Industrial Development Authority, and the St. Johns County Educational Facilities Authority.

B. Fund financial statements. The County’s fund statements report in greater detail than the countywide statements the County’s most significant funds. A fund is a group of related accounts used to exercise control over specific resources set apart for specific activities. The County, like other state and local governments, uses funds to ensure and demonstrate compliance with financial requirements imposed by law, bond covenants, and local administrative and legislative actions.

The County maintains 68 individual governmental funds. The General Fund, Transportation Trust, Fire District and the St. Johns County Community Redevelopment Agency are presented separately in the governmental fund balance sheet and in the statement of revenues, expenditures, and changes in fund balances. All other governmental funds are combined into a single, aggregated presentation. Individual fund data for these non-major governmental funds is provided in the form of combining statements in a separate section of this report.


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All of the County’s funds are classified in one of the following categories:

Governmental funds tell how basic governmental services were paid for in the short- term as well as what remains for near future spending. These funds account for essentially the same services as those reported as governmental activities in the countywide statements. Because the fund view does not include the additional long-term focus of the countywide statements, we provide additional information following the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances that explains the differences between the two views.

Enterprise funds report on business-type operations of the utility funds, solid waste fund, and convention center where the fees for services typically cover all or most of the costs of operations. These statements offer both long and short-term financial information and offer more detailed reporting of the amounts classified as business-type activities in the countywide statements.

Internal service funds are used to account for the financing of activities provided by one department or agency to other departments or agencies of the County on a cost reimbursement basis.

Fiduciary funds report information about financial arrangements in which the County acts solely as an agent or trustee for others. The County is responsible for ensuring these resources are used for their intended purposes. Since these funds are not resources of the County, but are held for the benefit of others, we exclude these activities from the countywide statements.

C. Notes to the financial statements. The notes provide additional information and explanation that is

necessary for a full understanding of both the countywide and fund statements.

D. Required supplementary information. Budgetary comparisons between beginning, ending, and actual results for the general fund and each individual major special revenue fund are located in the Supplementary Information section of the report. Additionally, the Schedules of Funding Progress and Employer Contributions – Other Post-Employment Benefits are located here.

E. Other supplementary information. The combining statements for the non-major governmental

funds, non-major enterprise funds, internal service and agency funds, as well as individual fund budget and actual comparison schedules are found in the Supplementary Information section of this report; after the required supplementary information section.

Additional statistical information is presented to give users of the report a historical perspective and to assist in determining current financial trends of the County.


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3. Financial Analysis of the County as a Whole. At the end of fiscal year 2016, the financial position of the County remains stable. However, the impact from the implementation of GASB 68, in the second year of reporting, has driven unrestricted net position from $59.0 million in Fiscal Year 2015 to $10.8 million this year. Although the County is reporting increasing to flat balance changes in each of the other components of net position, which is attributed primarily to increasing capital donations of infrastructure and land as seen in the Summary Statement of Net Position Table below, the unrestricted net position change is approximately dollar for dollar related to the net pension fund changes attributed to deferred inflows, outflows and pension liability increases.

This year, total net position for Governmental activities decreased by slightly less than one percent or $9.4 million dollars. Total assets and deferred outflows increased by $50.2 million during the year. Total liabilities and deferred inflows increased by $59.6 million. The increase in Net Investment in Capital Assets, which is related to the continued increase in donated infrastructure from completed roads within approved subdivisions and projects throughout the County, and the continued acquisition this year of new equipment and vehicles to replace those held beyond their useful lives during the recession, was $28.8 million. Along with the $7.7 million increase in restricted net position, increased unrestricted net position from the previous year’s balance to a negative $52.7 million; essentially eliminating available unrestricted resources for possible future demands and commitments.

Ending net position for Business-type activities changed by $42.9 million. This increase is also attributed to the increase in capital assets net of related debt during the period less any debt repayments used to acquire the assets, and from donated infrastructure.

Governmental activities unrestricted net position decreased by $45.9 million, as previously

mentioned, while Business-type activities unrestricted net position decreased by only $2.3 million.

2016 2015 2016 2015 2016 2015ASSETS

Cash and Investments 181,395$ 174,959$ 103,109$ 103,939$ 284,504$ 278,898$ Other Current Assets 8,357 7,853 5,162 5,039 13,519 12,892 Other Non-current Assets 7,737 5,849 799 105 8,536 5,954 Capital Assets 1,230,464 1,241,213 462,775 425,781 1,693,239 1,666,994

TOTAL ASSETS 1,427,953 1,429,874 571,845 534,864 1,999,798 1,964,738

DEFERRED OUTFLOWS OF RESOURCESBond Refunding Losses 9,599 10,108 4,198 4,653 13,797 14,761 Pension related 90,839 38,159 3,993 1,724 94,832 39,883

TOTAL DEFERRED OUTFLOWS OF RESOURCES 100,438 48,267 8,191 6,377 108,629 54,644

LIABILITIESCurrent Liabilities 37,822 31,576 14,906 14,361 52,728 45,937 Non-current Liabilities 368,442 305,719 193,132 197,367 561,574 503,086

TOTAL LIABILITIES 406,264 337,295 208,038 211,728 614,302 549,023

DEFERRED INFLOWS OF RESOURCESPension related 28,029 37,380 1,287 1,689 29,316 39,069 Advance Grant - -

TOTAL DEFERRED INFLOWS OF RESOURCES 28,029 37,380 1,287 1,689 29,316 39,069

NET POSITIONNet Investment in Capital Assets 1,032,580 1,003,746 293,108 248,866 1,325,688 1,252,612 Restricted 114,266 106,543 14,094 13,116 128,360 119,659 Unrestricted (52,748) (6,823) 63,510 65,842 10,762 59,019

TOTAL NET POSITION 1,094,098$ 1,103,466$ 370,712$ 327,824$ 1,464,810$ 1,431,290$

GovernmentalTotal

Summary Statement of Net PositionSeptember 30, 2016

(In Thousands)

Activities

Business-type

Activities


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Governmental Activities assets and deferred outflows of resources exceeded liabilities and

deferred inflows at the end of this fiscal year remained at $1.5 billion. The greatest portion of net position reflects the County’s investment in capital assets net of the related debt used to acquire them less bond balances remaining within the capital improvement funds. Additionally, $114.2 million of net position is subject to restrictions regarding how it may be used to meet these ongoing obligations; leaving $(52.7) million as unrestricted. Unrestricted net position can be used to meet the County’s ongoing obligations to citizens and creditors. However, this ability ended due to the implementation of GASB68. Since Fiscal Year 2014, unrestricted net position has declined more than $120.7 million.

Finally, included in the $63.5 million of unrestricted net position balances for business-type activities is:

Approximately $5.2 million in approved contract balances for capital improvements

associated with a regional sewer treatment facility and several smaller water and sewer infrastructure projects that will be completed next fiscal year for the County utility funds. Additionally, there is approximately $20.2 million in reserved developer contributions and unit connection fee balances from the utility funds available to offset part of this plan.

$4.9 million in landfill long-term care balance

The balance may be utilized for rate stabilization.

Although accounting principles do not restrict these amounts, they have been earmarked for future uses governed by the County’s capital improvement plan and prudent managerial decisions. The Statement of Activities, which is graphically portrayed in the following chart, illustrates where the program resources came from to cover the expenses associated with the various governmental activities of the County. Program revenues do not include general revenues such as taxes, intergovernmental revenue streams, transfers or interest earnings.

$92.70 $83.97 $75.83

$15.06 $15.51 $14.87

$13.53$44.99

$8.08

$(180.14)

$(93.42) $(151.04)

‐$200.00

‐$150.00

‐$100.00

‐$50.00

$0.00

$50.00

$100.00

$150.00

$200.00

2016 2015 2014

Statement of ActivitiesGovernmental Activities Revenue Resources

(In millions)

Charges for Service Operating Grants

Capital Grants Primary Government Contribution


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With the exception of Governmental Activities, regarding Capital Grants and contributions, the County increasingly relies upon increased charges for service, operational and capital grants, and taxes to meet governmental expenses. GASB 68, once again, had a significant impact on the annual change in net position for governmental activities. Overall, total net position of governmental activities decreased less than one percent. This slight decrease is attributable to significant increases in charges for services and taxes, which were mostly offset by a corresponding decrease in capital grants; and to an increase of $29 million in capital assets and infrastructure. Future growth within the County has a positive impact on net position, but creates additional operational considerations regarding maintenance and replacement in the future. Finally, program revenues were the main resources in meeting business-type expenditures. There were increases between fiscal years in expenses for the County utilities and solid waste programs. The remaining business-type programs were flat in comparison.

2016 2015 2016 2015 2016 2015Revenues:Program Revenues:

Charges for services 92,702$ 83,972$ 67,933$ 62,160$ 160,635$ 146,132$ Operating grants & contributions 15,062 15,509 1,585 26 16,647 15,535 Capital grants & contributions 13,527 44,990 36,872 8,563 50,399 53,553

General Revenues:Taxes 160,971 148,162 160,971 148,162 Intergovernmental 6,464 7,596 6,464 7,596 Unrestricted earnings on investments 1,857 2,472 1,382 1,173 3,239 3,645 Miscellaneous 1,711 3,213 5,000 1,711 8,213

Total Revenues 292,294 305,914 107,772 76,922 400,066 382,836

Expenses:General government 42,314 36,898 42,314 36,898 Public safety 135,342 108,407 135,342 108,407 Physical environment 1,023 1,057 1,023 1,057 Transportation 49,032 35,217 49,032 35,217 Economic environment 3,792 3,613 3,792 3,613 Human services 17,731 8,007 17,731 8,007 Culture and recreation 34,155 26,560 34,155 26,560 Court related 10,013 9,152 10,013 9,152 Interest on long-term debt 8,026 8,980 8,026 8,980 Utilities 45,225 42,866 45,225 42,866 Solid waste 19,280 18,409 19,280 18,409 Golf course - - Convention center 614 1,011 614 1,011

Total Expenses 301,428 237,891 65,119 62,286 366,547 300,177

Increase in Net Position Before Transfers (9,134) 68,023 42,653 14,636 33,519 82,659 Transfers (234) (292) 234 292 - - Change in net position (9,368) 67,731 42,887 14,928 33,519 82,659 Net position, beginning of year 1,103,466 1,035,735 327,824 312,896 1,431,290 1,348,631 Net position, end of year 1,094,098$ 1,103,466$ 370,711$ 327,824$ 1,464,809$ 1,431,290$

TotalActivities Activities


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4. Financial Analysis of the County’s Funds. The focus of St. Johns County’s governmental funds is to provide information on near-term inflows, outflows, and balances of available spending resources. This information is useful in assessing the County’s potential financing requirements. Unassigned fund balance may serve as a useful measure of the County’s net resources available for spending at the end of the fiscal year. At September 30, 2016, the County’s governmental funds reported combined ending fund balances of $164.7 million, which is an increase of $7.4 million when compared with the prior fiscal year balance and can be attributed to total revenues exceeding total expenditures by $4.3 million and other financing resources of approximately $3.1 million. The County expects to see continued declining balances over the next couple of years as a result of Hurricane Matthew, which is due to the length of time necessary for FEMA to reimburse the County on allowed expenditures related to the tragedy; capital and deferred maintenance projects being completed; and operating expenditure increases for related to payroll, pension and health related increases. The additional expenditures cannot be met through increasing property values only.

Taxes $160,971Intergovernmental

$49,126

Charges for Services $40,841

Assessments $11,993

Licenses & Permits $7,560

Fines $4,515 Investment Income$1,829 Miscellaneous

$1,712

Contributions $447

Governmental Funds Revenue(In Thousands)


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The County’s expenditures cover a range of services; over half are related to public safety, general government, and transportation.

Excluding capital outlays and the County debt service requirements, the County’s governmental fund expenditures increased by $7.8 million or 2.85% from prior year expenditures. This was primarily attributed to County wage increases and the continuation of deferred maintenance projects and capital expenditures that were postponed in previous years. The primary functional expenditures, which had the greatest increases, were Public Safety and Culture and Recreation. All other expenditure functions remained flat or decreased slightly from the prior fiscal year. The net change in fund balance for the General Fund, County Transportation Trust Fund and Fire District was an increase of $366 thousand. This represented insignificant adjustments to the funds beginning balances. The General Fund increase is the result of the additional other financing resources used primarily for capital equipment purchases. The increase in CTTF fund balance is the result of the total revenues exceeding total expenditures. And finally, the decrease in Fire District was directly related to increase operational expenditures and the transfer to the County Debt Service Funds.

$121,599

$38,509

$37,375

$30,450

$19,488

$12,337

$9,772$3,683

$2,105

$967

Governmental Funds Expenditures(In Thousands)

Public Safety

General Government

Transportation

Culture & Recreation

Debt Service

Human Services

Court Related

Economic Environment

Capital Outlay

Physical Environment


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The St. Johns County Community Redevelopment Agency net decrease in fund balance was $7,845 due primarily to the slow change in property values in the blighted areas based on the original values at the time the areas were established. This is expected to improve over time as property values begin their recovery in the areas.

As seen in the above table, General Fund ending fund balance increased slightly during the fiscal year. The increase is considerably less than originally projected during the final budget process and amendments. The anticipated ending budget projection was approximately $31.3 million which is $19.8 million less than actually occurred. The difference primarily is based on increased revenues of $6.8 million over budget, which was from the statutory 5% reduction required under statute; and expenditure savings of $6.4 million. The expenditure savings were achieved through the continued use of various measures implemented during the fiscal year by management to ensure sufficient unassigned balances would be available for future years. County Transportation Trust ending fund balance increased to $33.5 million due primarily to management achieving additional capital expenditure savings because of longer time frames to begin construction on numerous infrastructure projects in the County. The anticipated ending budget balance was $8.9 million. The Fire District’s ending fund balance was much more in line with the ending projected balance. There was a difference of $1.5 million. This is attributed to net budgetary expenditure savings of approximately $681 thousand and actual revenue increases compared to ending budget projections of $317 thousand. Although the County anticipated utilizing all the St. Johns County Community Redevelopment Agency fund balances during this fiscal year, there was a negligible balance at the close of the fiscal year. This was primarily achieved through decreased operating costs during the year.

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

07 08 09 10 11 12 13 14 15 16

Fiscal Year

Major Governmental FundsFund Balance Adjusted for Special Items

(In millions)

GeneralFund

County Transportation

Trust


- 28 -

The ending fund balances for the major funds are considerably greater than the County expected, or by guidelines, but were considered prudent by management. 5. General Fund budgetary highlights. Total adjustments that were made to the General Fund’s original budget and final amended budget included the following major transactions:

$346,828 was added in additional General Fund appropriations for various increases relating to unanticipated revenues that were awarded during the fiscal year for grants and various unanticipated receipts.

Additionally, the County borrowed $1,697,000 through the Florida Local Government Finance

Commission Pooled Commercial Paper Loan Program for additional E911 and EMS cardiac monitoring equipment.

Approximately $1.2 million in General Fund appropriations for various increases in operating

expenditures including property acquisition budget increase of $120,000 along Old A1A, additional debt service transfer of $220,257 associated with the new Commercial Paper note and an increase in builder’s construction loan payments for the successful CHWIP housing program of $863,550.

During this year, the difference between the County’s final adopted budget and total General Fund expenditures was $6.4 million. The following table highlights the savings by function/programs:

Function

Appropriation Balance In Thousands Percent

General Government $ 2,700 42.3% Public Safety 1,445 22.7% Culture and Recreation 899 14.1% All other functions 1,333 20.9%

Total $ 6,377 100.0%

Approximately $1.4 million in personnel savings were recognized.

Additionally, the largest savings was $3.4 million in operating appropriations across all County General Fund departments.

And finally, the balance of $.7 million in savings was from equipment or capital projects, which were not completed as anticipated, grants and interagency aid that were not utilized.


- 29 -

6. Capital Asset and Debt Administration.

Capital Assets. The County’s investment in capital assets for its governmental and business-type activities as of September 30, 2016 was $1.693 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, equipment, infrastructure, and construction in progress as presented in the following table.

Business-Governmental type

Activities Activities Total

Land 481,381$ 111,420$ 592,801$ Intangible assets 81 81 Building & improvements 300,046 34,588 334,634 Equipment 89,388 9,688 99,076 Infrastructure 614,379 419,366 1,033,745 Construction in progress 56,088 40,527 96,615 Less accumulated depreciation (310,818) (152,895) (463,713) Total 1,230,464$ 462,775$ 1,693,239$

(In Thousands)as of September 30, 2016

Capital AssetsNet of Depreciation

Additional information on the County’s capital assets can be found in the Notes of this report; Note 5.

Long-term Debt. At the end of fiscal year 2016, the County had total long-term obligations

outstanding of approximately $582 million. The majority of the County’s debt represents bonds secured by specific revenue sources.

Business-Governmental type

Activities Activities Total

Revenue bonds and notes 204,137$ 173,274$ 377,411$

Loans, commercial paper and obligations under capital lease 8,680 14,533 23,213 Landfill Closure/Postclosure care 4,897 4,897 Compensated Absences 10,668 900 11,568 Net pension liability 157,695 6,977 164,672

Total 381,180$ 200,581$ 581,761$

Outstanding Debt(In Thousands)

as of September 30, 2016


- 30 -

Excluding the County’s net state pension liability from total outstanding governmental and

proprietary long-term obligations, the balance decreased by $15.3 million from the prior fiscal year.

Overall, however with the inclusion of the County’s state pension obligations, the

County’s outstanding debt rose 11.1%.

$17.6 million was disbursed to retire principal that was due during the fiscal year on County bonds, notes and capital leases.

$3.8 million in notes, and capital leases was issued during the fiscal year. Additional information on the County’s long-term debt can be found in the Notes of this report; Note 6.

7. Economic Factors and Next Year’s Budgets and Rates.

St. Johns County primarily relies on property taxes, inter-governmental resources, impact fees, and service charges for governmental activities. The County lowered the overall aggregate county millage rate of 5.9371 mills from the prior fiscal year to 5.8746 mills. However, along with the St. Johns County School District, the county-wide millage decreased by 50 basis points to 13.2166 mills. The County will adjust future appropria-tions in accordance with budgetary direction provided by the Board of County Commissioners and adjust the property tax requirements so that there will possibly not be the need for future ad-valorem tax increases. Additionally, the County has been able to hold millage rates steady while meeting new customer demands for public safety and provide additional culture and recreation facilities/programs during this fiscal year. County staff’s ability to provide necessary funding levels for County functions and programs will certainly need to be constantly addressed in future budgets in light of the upcoming referendum to include an additional $25,000 homestead exemption for homeowners of the County.

4.5

5

5.5

6

6.5

07 08 09 10 11 12 13 14 15 16Fiscal Year

St. Johns CountyCountywide Millage Rate


- 31 -

Economic development within the three designated blighted areas within the County continues to be a high priority of the County’s Housing Department and the St. Johns County Community Redevelop-ment Agency. Next, as expressed in the County’s budget documents for fiscal year 2016, there were a number of critical accomplish-ments that were achieved.

The combined effect of property tax reform and the economic downturn led to the County Commission to approve an aggregate millage rate increase in the prior fiscal year after several town hall meetings were held by the County Administrator. However, during this fiscal year the overall millage rate remained unchanged.

The continued implementation of a professional firefighter force; rather than a volunteer force. However, this transition has added increased ad valorem rate pressure due to the increase in personnel, operating and capital expenditures over the last ten years.

The minimal use in unassigned balances to cover governmental activities will allow the County to transition to better economic conditions over the next few years. In addition, the Board of County Commissioners is committed to increase economic development within the County. It is their number one concern and additional resources have been appropriated for that function.

And finally, growth management issues continue to be a critical concern of county residents.

Growth management through revisions of the County’s Comprehensive Plan and stricter land development regulations will provide the necessary tools to help direct county staff in managing future development within the County.

8. Requests for Information. This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of St. Johns County’s finances and to demonstrate the County’s accountability to each of those groups. If you have questions about this report or need additional financial information, please contact the St. Johns County Clerk of the Circuit Court and Comptroller’s Office, Attn: Richard A. MacDonald, Jr., 4010 Lewis Speedway, St. Augustine, FL, 32084.

0

5

10

15

20

25

30

07 08 09 10 11 12 13 14 15 16

St. Johns CountyTaxable Property Values by Fiscal Year

(In Billions)

- 32 -

BASIC FINANCIAL STATEMENTS

St Johns County, FloridaStatement of Net PositionSeptember 30, 2016

St Johns County St Johns County St Johns CountyHousing Industrial Educational

Governmental Business-type Finance Development FacilityActivities Activities Total Authority Authority Authority

ASSETSCash and cash equivalents 62,272,874$ 11,552,803$ 73,825,677$ 17,570$ 144,331$ 4,413$ Investments 119,121,741 76,015,564 195,137,305 2,077 Accounts receivable, net 3,005,754 3,276,134 6,281,888 147 Notes receivable, less than 1-year 501,900 501,900 42,614 Interest receivable 303,554 220,253 523,807 Internal balances 20,336 (20,336) - Due from other governments 4,200,478 329,023 4,529,501 130,056 Inventories 325,248 1,357,150 1,682,398 732,299 Restricted assets:

Cash and cash equivalents 6,366,038 6,366,038 Investments 9,174,233 9,174,233

Other assets 293,838 726,253 1,020,091 Notes receivable 753,907 72,570 826,477 198,259 Negative net OPEB obligation asset 6,689,598 6,689,598 Capital Assets:

Land and construction in progress 537,468,453 151,947,147 689,415,600 Other capital assets, net 692,995,178 310,828,162 1,003,823,340

TOTAL ASSETS 1,427,952,859 571,844,994 1,999,797,853 1,122,875 144,478 4,413

DEFERRED OUTFLOWS OF RESOURCES Bond refunding losses 9,599,507 4,198,100 13,797,607 Pension related 90,838,500 3,993,267 94,831,767 TOTAL DEFERRED OUTFLOW OF RESOURCES 100,438,007 8,191,367 108,629,374 - - -

LIABILITIESAccounts payable and accrued expenses 16,244,846 5,953,524 22,198,370 68,797 500 1,925 Due to other governments 3,476,595 14,131 3,490,726 Estimated liability for self insured losses 2,602,510 2,602,510 Customer deposits 684,826 1,489,325 2,174,151 Due within one year:

Bonds, capital leases, and contracts 10,581,664 6,852,338 17,434,002 501,900 Landfill closure and post-closure costs 326,465 326,465 Compensated absences 3,127,267 222,392 3,349,659 Pension liability 1,104,820 47,580 1,152,400

Due in more than one year: Bonds, capital leases, and contracts 202,234,967 180,954,852 383,189,819 Accrued landfill closure and post-closure costs 4,570,516 4,570,516 Compensated absences 7,483,914 677,731 8,161,645 Pension liability 156,590,430 6,929,224 163,519,654 Unearned revenues 2,132,311 2,132,311 183,154

TOTAL LIABILITIES 406,264,150 208,038,078 614,302,228 753,851 500 1,925

DEFERRED INFLOWS OF RESOURCES Pension related 28,028,665 1,286,632 29,315,297 TOTAL DEFERRED INFLOW OF RESOURCES 28,028,665 1,286,632 29,315,297 - - -

NET POSITIONNet investment in capital assets 1,032,580,465 292,957,607 1,325,538,072 Restricted for: Long-term Receivables 753,907 753,907 Property held for sale - 732,299 Bond construction 15,191,725 269,062 15,460,787 Future Development Impacts 22,656,456 22,656,456 Transportation 31,334,098 31,334,098 Fire District 10,841,609 10,841,609 Community Redevelopment 9,581 9,581 Court operations and improvements 5,751,965 5,751,965 Building Services 13,302,341 13,302,341 Debt service 3,448,401 11,597,468 15,045,869 State Housing Initiatives Program 1,482,281 1,482,281 Tourist Development and Recreation 6,998,295 6,998,295 Law enforcement 1,539,545 1,539,545 Other purposes 955,192 2,227,144 3,182,336 Unrestricted (52,747,810) 63,660,371 10,912,561 (363,275) 143,978 2,488 TOTAL NET POSITION 1,094,098,051$ 370,711,652$ 1,464,809,703$ 369,024$ 143,978$ 2,488$

Component UnitsPrimary Government

The accompanying notes are an integral part of the financial statements

- 33 -

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- 34 -

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ST. JOHNS COUNTY, FLORIDABALANCE SHEET - GOVERNMENTAL FUNDSSeptember 30, 2016

St. Johns CountyCommunity Other Total

General Transportation Fire Redevelopment Governmental GovernmentalASSETS Fund Trust District Agency Funds Funds

Equity in pooled cash and cash equivalents 13,036,556$ 3,411,334$ 539,846$ 15,769$ 40,700,334$ 57,703,839$ Investments 40,809,350 32,718,926 10,902,443 34,691,022 119,121,741 Accounts and notes receivable (net of allowance for uncollectibles) 1,089,971 794,616 56,248 776,720 2,717,555 Notes receivable 450,259 303,648 753,907 Interest receivable 105,475 84,565 28,178 85,336 303,554 Advances to other funds 2,207,694 42,681 2,250,375 Due from other funds 870,263 46,131 916,394 Due from other governments 1,959,316 1,443,616 168,678 562,161 4,133,771 Inventory 279,638 45,610 325,248 Other assets 241,426 10,497 27,630 14,284 293,837

TOTAL ASSETS 60,770,310$ 38,832,004$ 11,723,023$ 15,769$ 77,179,115$ 188,520,221$

LIABILITIES AND FUND BALANCES

LIABILITIESAccounts payable and accrued liabilities 5,475,026$ 5,296,929$ 830,000$ 6,188$ 2,519,590$ 14,127,733$ Customer deposits 676,991 7,835 684,826 Advances from other funds 2,250,375 2,250,375 Due to other funds 177,941 50,150 50,866 878,835 1,157,792 Due to other governments 3,147,834 55 548 328,158 3,476,595 Unearned revenue 181,244 1,951,067 2,132,311

TOTAL LIABILITIES 9,659,036 5,347,134 881,414 6,188 7,935,860 23,829,632

FUND BALANCESNonspendable 2,657,953 279,638 349,258 3,286,849 Restricted 290,334 6,903,229 4,078 63,068,543 70,266,184 Committed 281,671 281,671 Assigned 33,205,232 3,938,380 5,503 7,245,975 44,395,090 Unassigned 48,162,987 (1,702,192) 46,460,795

TOTAL FUND BALANCES 51,111,274 33,484,870 10,841,609 9,581 69,243,255 164,690,589

TOTAL LIABILITIES AND FUND BALANCES 60,770,310$ 38,832,004$ 11,723,023$ 15,769$ 77,179,115$ 188,520,221$

The accompanying notes are an integral part of the financial statements.

- 35 -

Total fund balances- governmental funds 164,690,589$

Amounts reported for governmental activities in the statement of net position are different because: Accrued HFA notes receivable are not reported in the governmental funds. 493,998

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds. 1,230,463,631

Net OPEB obligations are created through the estimated calculation of the county's employer contribution toward the retiree's benefits. The amount greater or less than the 6,689,598 annual required contribution is posted as an asset/(liability).

Deferred outflows for bond refunding losses are not reported in the governmental funds. 9,599,507

Deferred pension outflows are not reported in the governmental funds. 90,838,500

Bonds and notes payable (194,582,217); unamortized bond premiums and discounts (13,766,474); lease obligations ($4,467,940); compensated absences for governmental funds ($10,667,890); and net pension liabilities ($157,695,250) are not due and payable in the current period and therefore are not reported in the funds. (381,179,771)

Accrued interest payable is not reported in the governmental funds. (1,645,086)

Deferred pension inflows are not reported in the governmental funds. (28,028,665)

Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of internal service funds are included in governmental activities in the statement of net assets. 2,175,750

Net position of governmental activitie 1,094,098,051$


St Johns County, FloridaReconciliation of the Governmental Funds Balance Sheetto the Statement of Net PositionSeptember 30, 2016

- 36 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

St. Johns CountyCommunity Other Total

General Transportation Fire Redevelopment Governmental GovernmentalFund Trust District Agency Funds Funds

REVENUES: Taxes 102,134,413$ 19,012,028$ 26,811,731$ 619,983$ 12,392,516$ 160,970,671$ Special assessments 11,992,792 11,992,792 Licenses and permits 293,409 775,980 8,054,691 9,124,080 Intergovernmental 22,532,559 5,731,201 1,039,915 19,822,702 49,126,377 Charges for services 19,210,643 6,228,280 433,428 14,968,266 40,840,617 Fines and forfeitures 2,980,976 1,534,375 4,515,351 Contributions 380,411 25,000 41,579 446,990 Investment income 671,300 420,819 213,818 913 521,714 1,828,564 Miscellaneous revenue 1,532,880 68,198 21,467 88,999 1,711,544

TOTAL REVENUES 149,736,591 32,261,506 28,520,359 620,896 69,417,634 280,556,986

EXPENDITURES: Current: General government 32,593,818 5,914,708 38,508,526 Public safety 83,066,831 27,939,184 10,593,084 121,599,099 Physical environment 666,198 300,445 966,643 Transportation 31,246,859 6,128,445 37,375,304 Economic environment 2,905,525 50,258 727,745 3,683,528 Human services 6,628,116 5,708,572 12,336,688 Culture and recreation 15,367,996 15,082,193 30,450,189 Court Related 8,704,185 1,068,242 9,772,427 Capital Outlay 2,104,598 2,104,598 Debt service: Principal retirement 1,417,278 9,295,638 10,712,916 Interest and fiscal charges 35,481 8,732,218 8,767,699 Issuance costs 7,000 7,000

TOTAL EXPENDITURES 151,385,428 31,246,859 27,939,184 50,258 65,662,888 276,284,617

EXCESS OF REVENUES (UNDER) OVER EXPENDITURES (1,648,837) 1,014,647 581,175 570,638 3,754,746 4,272,369

OTHER FINANCING SOURCES (USES):

Transfers in 3,814,976 11,434,883 15,249,859 Transfers out (5,031,212) (96,471) (963,054) (578,483) (8,814,932) (15,484,152) Long-term debt issued 1,692,530 4,470 1,697,000 Capital lease 1,361,807 - 1,361,807 Sale of capital assets 177,212 199 65,400 35,045 277,856

TOTAL OTHER FINANCING SOURCES (USES) 2,015,313 (96,272) (897,654) (578,483) 2,659,466 3,102,370

NET CHANGE IN FUND BALANCES 366,476 918,375 (316,479) (7,845) 6,414,212 7,374,739

FUND BALANCES, BEGINNING OF YEAR 50,744,798 32,566,495 11,158,088 17,426 62,829,043 157,315,850

FUND BALANCES, END OF YEAR 51,111,274$ 33,484,870$ 10,841,609$ 9,581$ 69,243,255$ 164,690,589$


- 37 -

Net change in fund balances - total governmental funds 7,374,739$

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

Increase in HFA notes receivable 501,900

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Also, certain capital assets are contributed to the County by developers upon completion, requiring recognition of income not reported in the funds: Capital assets acquired by use of financial resources 29,558,356 Capital assets contributed by developers 11,655,219 Reclassification of capital items in construction in progress (18,376,170) Current year depreciation (32,551,603)

(9,714,198)

Repayment of bond principal is an expenditure in governmental funds, but the repayment results in a reduction of long-term liabilities in the statement of net position. Issuing debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. This is the amount by which debt issued of $3,058,807 was less than principal payments of $10,712,914 net of the amortization of bond premiums and issuance discount of $721,129. 8,375,236

Some expenses reported in the statement of activities did not require the use of current financial resources and therefore are not reported as an expenditure in governmental funds:

Loss on the early disposal of assets (1,035,376) Decrease of bond refunding losses (508,252) Increase in compensated absences (440,341) Increase in interest payable (409,245)

The net change in net pension liability and deferred outflows and inflows are reported in the statement of activities, but not in the governmental funds.

Change in net pension liability (70,535,603) Change in deferred outflows related to pensions 52,679,238 Change in deferred inflows related to pensions 9,351,192

OPEB contributions are reported as expenditures in the governmental funds. The difference between the annual required contribution and the county's estimated employer contribution is posted as an (increase)/reduction of the expenditure. 1,140,101

Internal service funds are used to charge the cost of certain activities to individual funds. The net revenue (expense) is reported in the county-wide statements with governmental activities. (6,155,159)

Change in net position of governmental activities (9,375,768)$


For the year ended September 30, 2016

St Johns County, FloridaReconciliation of the Statement of Revenues, Expenditures,and Changes in Fund Balances of Governmental Fundsto the Statement of Activities

- 38 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF NET POSITION - PROPRIETARY FUNDSSEPTEMBER 30, 2016

Business-type Activities - Enterprise Funds

St. Johns County Ponte Vedra SolidUtilities Utilities Waste

ASSETSCurrent assets: Equity in pooled cash and cash equivalents 6,003,582$ 5,004,592$ Investments 60,705,751$ 15,309,813 Accounts receivable, net 1,747,299 708,917 582,083 Unit connection fee notes receivable 52,985 19,585 Interest receivable 171,856 8,828 39,569 Other assets 259,341 465,008 1,904 Due from other funds Due from other governments 329,023 Inventory 1,357,150 Restricted assets: Cash and cash equivalents 3,598,782 1,606,419 28,031 Investments 5,764,829 3,409,404 Total current assets 73,987,016 12,221,743 20,965,992 Non-current assets: Capital assets:

Land 62,314,114 47,378,800 1,727,127 Intangible assets 54,395 26,381 Buildings and improvements 13,206,249 2,019,934 8,335,726 Water and sewer systems 391,537,184 27,828,714 Furniture and equipment 7,029,802 1,300,390 1,358,365 Accumulated intangible asset amortization (5,440) (2,638) Accumulated depreciation (136,644,302) (8,564,044) (3,716,097) Construction in progress 39,816,136 710,970

Total non-current assets 377,308,138 70,698,507 7,705,121 TOTAL ASSETS 451,295,154 82,920,250 28,671,113

DEFERRED OUTFLOWS OF RESOURCES Bond refunding losses 3,422,927

Pension related 3,021,244 597,530 374,493 TOTAL DEFERRED OUTFLOWS OF RESOURCES 6,444,171 597,530 374,493

LIABILITIESCurrent liabilities: Accounts payable and accrued liabilities 2,401,102 892,468 1,385,796 Unit connection fee contract payable 179,388 Estimated liability for self insured losses Customer deposits 1,184,784 276,510 28,031 Due to other funds 20,336 Due to other governments 12,003 2,128 Landfill closure and post-closure costs 326,465 Revenue bonds and notes payable 2,627,731 1,680,000 Interest payable 979,692 67,336 State loan payable 404,545 16,150 Capital lease payable 817,441 14,471 Compensated absences 164,451 50,757 7,184 Pension liabilities 36,177 6,937 4,466 Total current liabilities 8,827,650 3,006,757 1,751,942 Long-term liabilities: Accrued landfill closure and post-closure costs 4,570,516 Revenue bonds and notes payable 110,805,333 51,340,533 State loan payable 7,442,185 5,411,570 Capital lease payable 269,742 157,489 Accrued compensated absences 473,868 146,420 57,443 Pension liabilities 5,234,310 1,045,242 649,672 Total long-term liabilities 124,225,438 58,101,254 5,277,631

TOTAL LIABILITIES 133,053,088 61,108,011 7,029,573

DEFERRED INFLOWS OF RESOURCES Pension related 963,583 202,576 120,473 TOTAL DEFERRED INFLOWS OF RESOURCES 963,583 202,576 120,473

NET POSITION

Net investment in capital assets 272,930,649 12,078,294 7,705,121 Restricted for: Bond construction 269,062 Debt service 6,314,918 4,149,744 Renewal and replacement reserve 1,736,012 491,132 Unrestricted 42,472,014 5,488,023 14,190,439

TOTAL NET POSITION $ 323,722,655 $ 22,207,193 $ 21,895,560 (continued)

MAJOR FUNDS


- 39 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF NET POSITION - PROPRIETARY FUNDSSEPTEMBER 30, 2016

ASSETSCurrent assets: Equity in pooled cash and cash equivalents Investments Accounts receivable, net Unit connection fee notes receivable Interest receivable Other assets Due from other funds Due from other governments Inventory Restricted assets: Cash and cash equivalents InvestmentsTotal current assetsNon-current assets: Capital assets:

Land Intangible assets Buildings and improvements Water and sewer systems Furniture and equipment Accumulated intangible asset amortization Accumulated depreciation Construction in progress

Total non-current assetsTOTAL ASSETS

DEFERRED OUTFLOWS OF RESOURCES Bond refunding losses

Pension relatedTOTAL DEFERRED OUTFLOWS OF RESOURCES

LIABILITIESCurrent liabilities: Accounts payable and accrued liabilities Unit connection fee contract payable Estimated liability for self insured losses Customer deposits Due to other funds Due to other governments Landfill closure and post-closure costs Revenue bonds and notes payable Interest payable State loan payable Capital lease payable Compensated absences Pension liabilitiesTotal current liabilitiesLong-term liabilities: Accrued landfill closure and post-closure costs Revenue bonds and notes payable State loan payable Capital lease payable Accrued compensated absences Pension liabilitiesTotal long-term liabilities

TOTAL LIABILITIES

DEFERRED INFLOWS OF RESOURCES Pension relatedTOTAL DEFERRED INFLOWS OF RESOURCES

NET POSITION

Net investment in capital assetsRestricted for: Bond construction Debt service Renewal and replacement reserveUnrestricted

TOTAL NET POSITION

Enterprise Funds (concluded)Governmental

NONMAJOR FUND Activities -Internal

Convention ServiceCenter Total Funds

$ 544,629 $ 11,552,803 $ 4,569,034 76,015,564

237,835 3,276,134 288,199 72,570 220,253 726,253 - 261,735 329,023 66,707 1,357,150

1,132,806 6,366,038 9,174,233

1,915,270 109,090,021 5,185,675

111,420,041 80,776

11,025,952 34,587,861 419,365,898 9,688,557 (8,078)

(3,962,409) (152,886,852) 40,527,106

7,063,543 462,775,309 - 8,978,813 571,865,330 5,185,675

775,173 4,198,100 3,993,267

775,173 8,191,367 -

4,679,366 407,415 179,388 - 2,602,510 1,489,325 20,336 14,131 326,465

1,292,000 5,599,731 47,742 1,094,770

420,695 831,912 222,392 47,580

1,339,742 14,926,091 3,009,925

4,570,516 5,528,000 167,673,866

12,853,755 427,231 677,731 6,929,224

5,528,000 193,132,323 -

6,867,742 208,058,414 3,009,925

1,286,632 - 1,286,632 -

243,543 292,957,607

269,062 1,132,806 11,597,468

2,227,144 1,509,895 63,660,371 2,175,750

$ 2,886,244 $ 370,711,652 $ 2,175,750 (concluded)The accompanying notes are an integral part of the financial statements.

- 40 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION- PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016



OPERATING REVENUES: Charges for services 30,820,023$ 11,673,606$ 21,176,519$ Special assessment revenue Donation Other operating revenue 2,759,572 170,754 102,141

Total operating revenues 33,579,595 11,844,360 21,278,660

OPERATING EXPENSES: Contractual services 5,391,680 1,682,124 17,232,796 Salaries and benefits 8,673,905 1,867,344 1,020,433 Operating and maintenance expenses 5,364,506 1,769,098 664,014 Amortization of intangible assets 2,720 1,319 Depreciation 11,325,101 1,320,717 362,446

Total operating expenses 30,757,912 6,640,602 19,279,689

OPERATING INCOME (LOSS) 2,821,683 5,203,758 1,998,971

NON-OPERATING REVENUES (EXPENSES): Investment income 1,140,637 73,185 163,963 Interest expense (5,023,029) (2,668,137) Bond issuance expense (134,848) Operating grant revenue 1,567,016 18,300 Unit connection fees 5,156,514 322,301 (Loss) gain from asset disposition (836) 10,076 4

Total non-operating revenues (expenses) 2,840,302 (2,379,123) 163,967

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 5,661,985 2,824,635 2,162,938

Capital contributions 30,417,817 975,593 Transfer in

INCREASE (DECREASE) IN NET POSITION 36,079,802 3,800,228 2,162,938

NET POSITION, BEGINNING OF YEAR 287,642,853 18,406,965 19,732,622

NET POSITION, END OF YEAR 323,722,655$ 22,207,193$ 21,895,560$

(continued)

MAJOR FUNDS


- 41 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION- PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

OPERATING REVENUES: Charges for services Special assessment revenue Donation Other operating revenue

Total operating revenues

OPERATING EXPENSES: Contractual services Salaries and benefits Operating and maintenance expenses Amortization of intangible assets Depreciation

Total operating expenses

OPERATING INCOME (LOSS)

NON-OPERATING REVENUES (EXPENSES): Investment income Interest expense Bond issuance expense Operating grant revenue Unit connection fees (Loss) gain from asset disposition

Total non-operating revenues (expenses)

INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS

Capital contributions Transfer in

INCREASE (DECREASE) IN NET POSITION

NET POSITION, BEGINNING OF YEAR

NET POSITION, END OF YEAR



Convention ServiceCenter Totals Funds

608,943$ 64,279,091$ 22,561,975$ 606,835 606,835

- 50,000 4,521 3,036,988 436,478

1,220,299 67,922,914 23,048,453

24,306,600 28,578,217 11,561,682 380,609

245,265 8,042,883 273,149 4,039

220,741 13,229,005

466,006 57,144,209 29,231,975

754,293 10,778,705 (6,183,522)

3,686 1,381,471 28,363 (147,633) (7,838,799)

(134,848) 1,585,316 5,478,815

9,244

(143,947) 481,199 28,363

610,346 11,259,904 (6,155,159)

31,393,410 234,293 234,293

844,639 42,887,607 (6,155,159)

2,041,605 327,824,045 8,330,909

2,886,244$ 370,711,652$ 2,175,750$

(concluded)


- 42 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF CASH FLOWS - PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016



CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 33,160,466$ 11,799,004$ 21,286,657$ Payments to suppliers (10,734,014) (3,082,489) (18,212,908) Payments to employees (8,165,357) (1,821,025) (956,073) Net cash provided by (used in) operating activities 14,261,095 6,895,490 2,117,676

NONCAPITAL FINANCING ACTIVITIES: Transfer in Grants received 1,567,016 18,300 Net cash provided by noncapital financing activities 1,567,016 18,300 -

CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets (17,623,366) (1,339,725) (193,336)

Sale of capital assets 27,190 10,080 Proceeds from issuance of long-term debt (389,864) 735,374 Principal payments on revenue bonds (2,656,341) (1,610,000) Principal payments on State Revolving Loan (454,188) Principal payments on long-term lease (911,376) (14,108) Interest paid on revenue bonds, loans and lease obligations (5,419,203) (2,635,677) Issuance cost for long-term debt (134,848) Impact and developer fees 5,156,514 322,301 Net cash used in capital and related financing activities (22,270,634) (4,666,603) (193,336)

INVESTING ACTIVITIES: Investment purchases (1,709,906) (4,193,392) (420,535) Proceeds from sale of investments 5,712,836 8,300,359 244,577 Investment income received 1,119,702 79,061 163,126 Net cash provided by (used in) investing activities 5,122,632 4,186,028 (12,832)

NET CHANGE IN CASH AND CASH EQUIVALENTS (1,319,891) 6,433,215 1,911,508

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 4,918,673 1,176,786 3,121,115

CASH AND CASH EQUIVALENTS, END OF YEAR 3,598,782$ 7,610,001$ 5,032,623$

NON-CASH INVESTING, CAPITAL AND RELATED FINANCING ACTIVITIES: Accretion of interest on capital appreciation bonds 2,432,554 Change in fair value of investments 399,755 6,335 (45,240) Capital assets contributed by developers 30,417,817 975,593

Reconciliation of operating income (loss) to net cash provided in (used by) by operating activities: Operating income (loss) 2,821,683$ 5,203,758$ 1,998,971$ Adjustments to reconcile operating income (loss) to cash provided by operating activities: Depreciation 11,325,101 1,320,717 362,446 Amortization of bond debt service reserve insurance premiums 2,720 1,319 Change in accounts receivable (135,514) (115,521) 47,453 Change in notes receivable 28,500 4,301 Change in due from other funds 42,651 - Change in due from other governments (317,853) Change in inventory (176,826) Change in deferred outflows (1,515,123) (330,786) (212,923) Change in other assets 5,740 23,211 234 Change in accounts payable and accrued liabilities 124,382 355,472 (22,266) Change in unit connection fee contract payable (8,489) Change in customer deposits 141,164 23,120 200 Change in estimated liability for self insured losses Change in due to other funds (66,273) (11,671) (17,327) Change in due to other governments 8,213 1,812 Change in deferred inflows (306,205) (58,719) (37,796) Change in accrued landfill closure and post-closure costs (279,874) Change in pension liability 2,309,687 442,911 285,097 Change in accrued compensated absences 20,188 (7,085) (6,539)

Net cash provided by (used in) operating activities 14,261,095$ 6,895,490$ 2,117,676$

(continued)

MAJOR FUNDS


- 43 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF CASH FLOWS - PROPRIETARY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers Payments to employees Net cash provided by (used in) operating activities

NONCAPITAL FINANCING ACTIVITIES: Transfer in Grants received Net cash provided by noncapital financing activities

CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and construction of capital assets

Sale of capital assets Proceeds from issuance of long-term debt Principal payments on revenue bonds Principal payments on State Revolving Loan Principal payments on long-term lease Interest paid on revenue bonds, loans and lease obligations Issuance cost for long-term debt Impact and developer fees Net cash used in capital and related financing activities

INVESTING ACTIVITIES: Investment purchases Proceeds from sale of investments Investment income received Net cash provided by (used in) investing activities

NET CHANGE IN CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

CASH AND CASH EQUIVALENTS, END OF YEAR

NON-CASH INVESTING, CAPITAL AND RELATED FINANCING ACTIVITIES: Accretion of interest on capital appreciation bonds Change in fair value of investments Capital assets contributed by developers

Reconciliation of operating income (loss) to net cash provided in (used by) by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to cash provided by operating activities: Depreciation Amortization of bond debt service reserve insurance premiums Change in accounts receivable Change in notes receivable Change in due from other funds Change in due from other governments Change in inventory Change in deferred outflows Change in other assets Change in accounts payable and accrued liabilities Change in unit connection fee contract payable Change in customer deposits Change in estimated liability for self insured losses Change in due to other funds Change in due to other governments Change in deferred inflows Change in accrued landfill closure and post-closure costs Change in pension liability Change in accrued compensated absences

Net cash provided by (used in) operating activities



Convention ServiceCenter Totals Funds

1,285,646$ 67,531,773$ 24,168,375$ (578) (32,029,989) (28,214,552)

(10,942,455) (322,153) 1,285,068 24,559,329 (4,368,330)

234,293 234,293 1,585,316

234,293 1,819,609 -

(19,156,427) 37,270

345,510 (1,261,000) (5,527,341)

(454,188) (925,484)

(156,462) (8,211,342) (134,848)

5,478,815 (1,417,462) (28,548,035) -

(6,323,833) (115,247) 947,479 15,205,251 6,714,895

5,477 1,367,366 44,245 952,956 10,248,784 6,643,893

1,054,855 8,079,687 2,275,563

622,580 9,839,154 2,293,471

1,677,435$ 17,918,841$ 4,569,034$

2,432,554 (4,385) 356,465

31,393,410

754,293$ 10,778,705$ (6,183,522)$

220,741 13,229,005 244,791 248,830

65,347 (138,235) 541,457 32,801 42,651 636,921 (317,853) (176,826) (2,058,832)

(104) 29,081 457,588 382,944 (8,489) 164,484 - 258,064 (95,271) (4,194) 10,025 (402,720) (279,874) 3,037,695 6,564

1,285,068$ 24,559,329$ (4,368,330)$

(concluded)


- 44 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS

SEPTEMBER 30, 2016

OPEB

Agency Trust

Funds Fund

ASSETS

Equity in pooled cash and cash equivalents 12,490,534$ 583,322$

Accounts receivable 31,588 8,393

Interest receivable

Investments, at fair value:

Money Market Funds 13,658

Other Growth Funds 1,241,841

Taxable Bonds - Fixed Income Funds 9,770,091

Stocks - Equity Funds 17,978,394

TOTAL ASSETS 12,522,122 29,595,699

LIABILITIES

Accounts payable 25,546

Assets held for others 12,522,122

TOTAL LIABILITIES 12,522,122 25,546

NET POSITION

Held in trust for other post employment benefits 29,570,153

TOTAL NET POSITION -$ 29,570,153$


- 45 -

ST. JOHNS COUNTY, FLORIDASTATEMENT OF CHANGES IN FIDUCIARY NET POSITION

OTHER POST-EMPLOYMENT BENEFITS TRUST FUND


ADDITIONS

Contributions:

Employer 2,235,506$

Retirees 1,390,135

Investment income:

Interest 160,218

Dividends 564,328

Net increase in fair value of investments 1,833,553

Total investment earnings 2,558,099

Less investment expense 147,820

Net investment income 2,410,279

TOTAL ADDITIONS 6,035,920

DEDUCTIONS

Benefits 1,822,376

Administrative services 3,000

TOTAL DEDUCTIONS 1,825,376

CHANGE IN NET POSITION 4,210,544

NET POSITION HELD IN TRUST FOR OTHER POST EMPLOYMENT BENEFITS, BEGINNING 25,359,609

NET POSITION HELD IN TRUST FOR OTHER POST EMPLOYMENT BENEFITS, ENDING 29,570,153$


- 46 -

ST. JOHNS COUNTY, FLORIDA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2016

‐ 47 ‐

1. REPORTING ENTITY St. Johns County (“County”) is a political subdivision of the State of Florida established in 1821. The County is organized under Article III of the Constitution of the State of Florida that empowers the creation of political subdivisions of the State. It is governed by an elected Board of County Commissioners (“Board”), which derives its authority by Florida Statutes and regulations. In addition to the members of the Board, there are five elected Constitutional Officers that are legally separate entities: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser and Supervisor of Elections. The Constitutional Officers maintain separate accounting records and budgets. For the purpose of these financial statements the financial reporting entity includes St. Johns County (the primary government) and its component units as required by accounting principles generally accepted in the United State of America (“Generally Accepted Accounting Principles”). The component units discussed below are included in the County’s reporting entity either because the County is considered to be financially accountable for the entity, or it would be misleading to exclude the entity. The County is financially accountable for an organization when the County appoints a voting majority for the organization’s governing body and is able to impose its will on the organization; there is a potential for the organization to provide a financial benefit or impose a financial burden on the County; or the organization is fiscally dependent on the County. Blended Component Units, although legally separate entities, are, in substance, part of the government’s operation and so data from these units is combined with data of the primary government. Blended Component Units

The Anastasia Sanitary District, St. Johns County Community Redevelopment Agency, Elkton Drainage District, Ponte Vedra Zoning & Adjustment Board, and the Vilano Street Lighting District are blended component units of the County. These units are included in the County’s reporting entity because they have the same governing board as the primary government, and county management has operational responsibility. The Anastasia Sanitary District maintains its legal existence; however, there has been no accounting activity for the Anastasia Sanitary District since 1992.

Discretely Presented Component Units

Discretely Presented Component Units are reported in separate columns on the government-wide financial statements to emphasize they are legally separate from the County. The following agencies Board of Directors are appointed by the County, and the County has the ability to impose its will and has final approval authority for the corporate purposes they were chartered under Florida Statute.

The St. Johns County Housing Finance Authority (“HFA”) was created as a Florida public

corporation in accordance with Florida Housing Finance Authority Law, Part IV of Chapter 159, Florida Statutes (1979), following the adoption of an approving ordinance (No. 80-7, dated February 26, 1980) by the Board. The purpose of the HFA is to encourage the investment of private capital and stimulate the construction of residential housing for low to moderate income families through the use of public financing. The


‐ 48 ‐

1. REPORTING ENTITY (continued)

HFA is authorized to issue bonds to fulfill its corporate purpose in principal amounts specifically authorized by the County.

The St. Johns County Industrial Development Authority (“IDA”) was created as a Florida

public corporation in accordance with Florida Finance Authority Law, Part III of Chapter 159, Florida Statutes (1979), following the adoption of an approving ordinance (No. 80-9, dated January 22, 1980) by the Board. The purpose of the IDA is authorized to issue bonds to fulfill its corporate purpose in principal amounts specifically authorized by the County.

The St. Johns County Educational Facilities Authority (“Authority”) was activated as a

Florida public corporation in accordance with the Florida Authority Law, Part II of Chapter 243, Florida Statutes, following the adoption of an approving resolution (No. 2011-94, dated April 19, 2011) by the Board. The purpose of the Authority is to assist institutions for higher education in the construction, financing, and refinancing of projects. The Authority is authorized to issue bonds to fulfill its corporate purpose in principal amounts specifically authorized by the County.

Separately issued financial statements are available as follows:

St. Johns Housing Finance Authority P.O. Box 1533 St. Augustine, Florida 32085-1533 St. Johns County Industrial Development Authority 2825 Lewis Speedway, Suite 104 St. Augustine, Florida 32084 St. Johns County Educational Facilities Authority 2825 Lewis Speedway, Suite 104 St. Augustine, Florida 32084

At September 30, 2016, St. Johns County had not entered into any joint ventures with any other governmental agencies.

The rest of this page left blank.


‐ 49 ‐

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the county conform to Generally Accepted Accounting Principles (“GAAP”) as applicable to governments. The following is a summary of the more significant policies.

A. Basis of Presentation

The accompanying financial statements of the County have been prepared in conformity with GAAP as prescribed by the Governmental Accounting Standards Board (“GASB”), GASB is the accepted standard setting body for establishing governmental accounting and financial reporting principles for units of local government.

B. Basic Financial Statements

The basic financial statements include both government-wide and fund level statements. The government-wide statements report on all of the non-fiduciary activities of the County and its component units. Both the government-wide and fund level statements classify primary activities of the County as either governmental activities, which are primarily supported by taxes and intergovernmental revenues, or business-type activities, which are primarily supported by user fees and charges. The government-wide statement of net position reports all assets and liabilities of the County, including both long-term assets and long-term debt and other obligations. The statement of activities reports the degree to which direct expenses of county functions are offset by program revenues, which include program specific grants and charges for services provided by a specific function. Direct expenses are those that are clearly identifiable with a specific function or program. The net cost of these programs which was not reported in the previous statement model, is funded from general revenues such as taxes, intergovernmental revenue, and interest earnings. The fund level statements are similar to the statements presented in the previous reporting model. The fund level statements report on governmental, proprietary, and fiduciary fund activities. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund level financial statements. Since the fund level statements for governmental activities are presented using a different measurement focus and basis of accounting than the government-wide statements governmental column (as discussed under Basis of Accounting in this summary of significant accounting principles), a reconciliation is presented on the page following governmental fund level statements that briefly explains the adjustments necessary to convert the fund level statements into the government-wide column presentations. Finally, the effect of interfund activity has been eliminated from the government-wide statements unless elimination of the payments, such as the indirect general fund administration charges for services between the several special revenue funds and the proprietary funds, distorts the direct cost reported for these functions.


‐ 50 ‐

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fund Structure

The County’s accounts are maintained in accordance with the principles of fund accounting to ensure compliance with limitations and restrictions placed on the use of resources available to it. Under fund accounting, individual funds are established for the purpose of carrying on activities or attaining objectives in accordance with specific regulations, restrictions, or limitations. Each individual fund is a self-balancing set of accounts recording assets and other financing resources, together with liabilities and residual equities or balances, and changes therein. For financial statement presentation, funds with similar characteristics, including those component units referenced above, are grouped into generic classifications as required by GAAP. A brief description of these classifications follows:

Governmental Funds

These funds report transactions related to resources received and used for those services traditionally provided by governmental agencies. The following are major governmental funds used by the County. General Fund - The General Fund is the general operating fund of the County. It is used to account for and report all financial resources not accounted for and reported in another fund. Transportation Trust Fund – This fund is used to account for all revenues, including ad-valorem taxes, federal and state grants, state shared and local fuel taxes, local charges for services, interest earnings, and expenditures for the County’s transportation system. Fire District – This fund accounts for revenues and expenditures for the operation of the County’s fire stations.

St. Johns County Community Redevelopment Agency – This fund accounts for additional tax increment revenue spending within several County redevelopment areas. The purpose is to increase the economic activity, opportunities and overall development within the areas.

Enterprise Funds

These funds report transactions related to activities similar to those found in the private sector. Major enterprise funds include: St. Johns County Utilities – This fund accounts for the operations of the County’s water and wastewater treatment services in certain areas of St. Johns County. St. Johns County Ponte Vedra Utilities – This fund accounts for the operations of the Ponte Vedra water and wastewater treatment services. St. Johns County Solid Waste – This fund accounts for the operations of the County’s landfill and transfer stations.


‐ 51 ‐

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Enterprise funds distinguish operating revenues and expenses from non-operating revenues and expenses. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the funds’ principal ongoing operation. The principal operating revenues for the County’s enterprise funds are charges to customers for sales and services. Operating expenses include direct expenses of providing the goods or services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenue and expenses.

Other Funds

Internal Service Funds – Internal service funds account for services provided primarily to other departments and elected officials of the County on a cost-reimbursement basis. The county has two internal service funds for collecting premiums and handling the payment of claims. They are the County’s Workers Compensation and Health Insurance Funds. Trust and Agency Funds – Trust and agency funds are used to account for the collection and disbursement of monies by the County on behalf of other governments and individuals. The County reports these funds for the Board of County Commissioners, Clerk of Courts, Sheriff and Tax Collector. These funds account for the receipt and disbursement of funds that are custodial in nature, such as ad valorem taxes, cash bonds, traffic fines, support payments and other post-employment benefits for employees.

C. Basis of Accounting

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and trust fund financial statements. Under this method, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue when all eligibility requirements imposed by the provider are met. Agency fund statements report assets and liabilities on accrual basis of accounting only and, since there is no change in County equity from the receipt and disbursement of funds, it is not necessary to prepare operating statements and therefore agency funds do not have measurement focus of accounting. Governmental fund financial statements are reported using a current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e. when they become both measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenues that are determined to be susceptible to accrual include state shared revenue, intergovernmental revenue, charges for services and investment income.


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Federal grants collected on a reimbursement basis are recognized as revenue when reimbursable expenditures are made. Revenues collected on an advance basis, including certain federal grant revenue, to which the County does not yet have legal entitlement, are not recognized as revenue until the related commitment arises. Generally, the County considers a 60-day availability period of revenue recognition.

Expenditures are recorded when the related fund liability is incurred, except for items that are not planned to be liquidated with expendable available resources. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

D. Pooled Cash and Cash Equivalents

The County maintains a cash and equivalents pool that is available for use by all funds. Each fund’s portion of this pool is displayed on the balance sheet as “Equity in Pooled Cash and Cash Equivalents”. If a fund overdraws its account in the pool, a liability and corresponding receivable (i.e., due to/from other funds) are reported on the balance sheet. This includes cash in banks, petty cash, investments held by US Bank in the First American Funds Money Market Fund, balances in the Local Government Surplus Funds Trust Fund (the “State Pool”) administered by the State Board of Administration; the Florida Local Government Investment Trust (“FLGIT”) administered by the Florida Court of Clerks and Comptrollers and the Florida Association of Counties; and investments in the Fidelity Institutional Money Market Prime Money Market Portfolios.

E. Investments

The County has adopted an investment policy pursuant to Section 218.415, Florida Statutes, which allows surplus and other post-employment benefit funds to be invested in Registered Investment Companies organized under the Investment Company Act of 1940 with holdings of domestic and/or international equities, domestic fixed income investments, real estate; Money Market Mutual Funds; Comingled Trusts organized by banks under the Office of the Controller of Currency; Supranational Agencies; United States Government Securities; United States Government Agencies; Federal Instrumentalities; Certificates of Deposit or Savings Accounts; Repurchase Agreements; Commercial Paper; Corporate Paper or Notes; State and/or Local Government Taxable and/or Tax-Exempt Debt and Inter-governmental Investment Pools.

F. Property Taxes

The Tax Collector bills and collects property taxes. Tax revenues are recognized when levied, to the extent that they result in current receivables. At September 30, 2016, there were no property tax receivables. Details of the County’s tax calendar are presented below: Lien date January 1st Levy date October 1st Delinquent date April 1st


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G. Inventories

Inventories, consisting primarily of expendable items (materials and supplies), are determined by physical count at the fiscal year end and valued at cost on the basis of the “first-in first-out” method of accounting. Governmental Fund and Proprietary Fund inventories are recorded as an expenditure when consumed rather than when purchased (consumption method) for financial statement purposes.

H. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Florida Retirement System Pension Plan and Health Insurance Subsidy Program and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

I. Deferred Outflows and Inflows

Deferred outflows represent the consumption of resources that is applicable to future reporting periods. Deferred inflows represent the acquisition of resources that is applicable to future reporting periods.

J. Restricted Assets

Certain funds of the County are classified as restricted assets on the statement of net position because a restriction is either imposed by law through constitutional provisions or enabling legislation, or imposed externally by creditors, grantors, contributors, or laws or regulations of other governments. Therefore, applicable laws and regulations limit their use. It is the practice of the County to utilize restricted net position before unrestricted net position.

K. Capital Assets

All purchased capital assets are recorded at cost where historical records are available and at estimated cost where no historical records exist. Donated capital assets are valued at their estimated acquisition value on the date received. Generally, capital assets costing more than $1,000 and having a useful life of more than one year are capitalized. However, varying asset capitalization thresholds are established for the various types of infrastructure assets and, normally, the County does not capitalize interest. Intangible assets, including easements and internally generated computer software, are capitalized at cost or at the estimated acquisition value when received from the developer. Easements, which are attached to land, have indefinite useful lives and are not amortized. Internally generated computer software is amortized over the useful life of the software and values as determined by the County’s Information Technology Department.


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The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are reported in the applicable governmental or business-type column in the government-wide financial statements, and in the proprietary fund level statements. The County began prospective reporting of general infrastructure assets as of the effective date of GASB Statement No. 34. Effective October 1, 2005, the County began retroactive reporting of all major general governmental infrastructure assets.

Depreciation on all capital assets is calculated using the straight-line method over the following useful lives: Infrastructure 25-75 years Bridges 35-75 years Buildings and improvements 10-60 years Furniture and equipment 4-10 years Water and Sewer Systems 10-50 years

L. Accrual for Landfill Closure and Post-Closure Costs

Based on the consulting engineer’s cost estimates, a portion of the estimated closure and post-closure cost for the Tillman Ridge Landfill is recognized as expense each year to match the flow of revenues. The estimated closure and post-closure cost accrued at September 30, 2016 is based on the current estimate to perform long-term care annually over the next 15 years.

M. Unearned Revenue

Unearned revenue reported in the Governmental Funds represents revenues that are received, but not earned until a future period. The revenue will be recognized in the fiscal year it is earned. Unearned revenue is recorded in liabilities.

N. Long-Term Obligations

In the government-wide financial statements, governmental long-term debt and other governmental long-term obligations are reported as liabilities in the governmental activities column of the Statement of Net Position. Long-term debt and other long-term obligations of the proprietary funds are reported as liabilities in the business-type activities column of the Statement of Net Position and the appropriate proprietary fund in the fund level statements.

O. Accrued Compensated Absences

County Employees may accumulate earned personal leave benefits (compensated absences) at various rates within limits specified in the County’s Administrative Code. This liability reflects amounts attributable to employee services already rendered, cumulative, probable for payment, and reasonably estimated in conformity with GASB Statement No. 16, Accounting for Compensated Absences.


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Compensated absences liabilities are accrued when incurred in the government-wide financial statements and the proprietary fund level statements. No expenditure is reported in the governmental fund level statements for these amounts until payment is due. No liability is recorded for non-vesting accumulated sick pay benefits. Compensated absences liability is based on current rates of pay.

P. Net Position

Net position represents the difference between assets plus deferred outflows and liabilities plus deferred inflows reported for the governmental activities, business-type activities, proprietary funds and fiduciary funds. Net position is reported as restricted when there are externally imposed restrictions. Unrestricted net position is net position that does not meet the definition of the classification previously described. When both restricted and unrestricted resources are available for use, it is the County's policy to use restricted resources first, and then unrestricted sources as they are needed.

Q. Fund Balances

The County follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions to classify fund balances for governmental funds into specifically defined classifications. The classifications comprise a hierarchy based primarily on the extent to which the County is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balance classifications are described below: Nonspendable Fund Balance – Nonspendable fund balances are amounts that cannot be spent because they are wither (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted Fund Balance – Restricted fund balances are restricted when constraints place on the use of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – Committed fund balances are amounts that can only be used for specific purposes as a result of constraints imposed by formal action of the County’s highest level of decision-making authority, which is by Ordinance approved by the Board. Committed amounts cannot be used for any other purpose unless the Board removes those constraints by taking the same type of action.

Assigned Fund Balance – Assigned fund balances are amounts that are constrained by the County’s intent to be used for specific purposes, but are neither restricted nor committed. Only the Board has the authority to assign amounts used for specific purposes through the St. Johns County Administrative Code adopted by Resolution 2006-128.

Unassigned Fund Balance – Unassigned fund balance is the residual classification for the General Fund. The County’s policy is to expend resources in the following order: restricted, committed, assigned, and unassigned.


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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) R. Use of Estimates

The preparation of financial statements, in accordance with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the financial statements, and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

3. DEPOSITS AND INVESTMENTS

A. Pooled Cash and Cash Equivalents

Pooled cash and cash equivalents are defined as short-term highly liquid investments that are both readily convertible to known amounts of cash and have an original maturity of three months or less when acquired. This includes cash in banks, cash in bank deposit accounts for construction projects and debt service reserve obligations, petty cash, repurchase agreements, investments administered by US Bank in the Money Market Fund and balances in the State Pool administered by the SBA, balances in FLGIT administered by FCCC and FAC, and finally, balances in the Fidelity Institutional Money Market Prime Money Market Portfolio. The State Pool is an investment pool authorized by Section 218.405, Florida Statutes and operates under investment guideline established by Section 215.47, Florida Statutes. The State Pool Florida Prime has adopted operating procedures consistent with GASB’s requirements to measure its investments at amortized cost. Therefore, the Florida Prime balance of $25,430,368 is reported at amortized cost. The fair value of the position in the pool is the same as the value of the pooled shares held at September 30, 2016. The County also has funds invested in the Florida Local Government Trust’s (“FLGIT”) Day-to-Day Fund. FLGIT is an external investment pool administered by the Florida Clerk of Courts and Comptrollers Association and the Florida Association of Counties. The County’s investment in the Day-to-Day Trust is reported at amortized cost. The fair value of the position in the pool is equal to the value of the pool shares of 3,258,222.

The County’s investments in Florida Prime and FLGIT exposes it to credit and interest rate risks.

Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The State Pool and FLGIT are rated by Standard and Poor’s and have a rating at September 30, 2016 of AAAm.

Interest Rate Risk is the risk that changes in interest rates will adversely affect the fair value

of an investment.

The weighted average maturity (WAM) of the Florida PRIME at September 30, 2016 was 50 days.

The weighted average maturity (WAM) of FLGIT’s Day-to-Day Fund at September 30, 2016 was 52.76 days.


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3. CASH AND INVESTMENTS (continued)

Finally, the Fidelity Institutional Money Market Prime Money Market Portfolio, First American Government Obligation Fund and the Wells Fargo Advantage Heritage Money Market Fund are Securities and Exchange Commission investment pools organized under the Investment Company Act 1940. They are required to invest exclusively in securities that mature within 397 days from the date of purchase and to maintain an average weighted maturity of not more than 90 days.

As of September 30, 2016, the Wells Fargo Advantage Heritage Money Market Fund balance was $4,718,632 and had an average of 25 days to maturity.

As of September 30, 2016, the Fidelity Institutional Money Market Prime Money

Market Portfolio balance was $500,000 and the weight average maturity of the fund was 7 days.

The First American Government Obligation Fund balance was $13,629 and had a

weighted average maturity of 36 days. Regarding the implementation of GASB72 Fair Value Measurement and Application, it is the interpretation of the hierarchy disclosure, for FLGIT, that it is exempt. The money market fund’s investment strategy seeks to provide maximum current income and daily liquidity by purchasing high-quality short-term debt securities such as commercial paper, repurchase agreements, variable rate demand notes, and bank instruments.

At September 30, 2016, all of the County’s bank deposits were held in qualified public depositories, pursuant to Chapter 280, Florida Statutes and are fully insured or collateralized. Component Units – At September 30, 2016 the Housing Finance Authority, Industrial Development Authority, and Educational Facilities Authority’s cash on deposit was entirely insured or collateralized pursuant to Chapter 280, Florida Statutes.

B. Investments

On January 8, 2008 and subsequently amended on June 23, 2014, the County formally adopted a comprehensive change to the investment policy pursuant to Section 218.415, Florida Statutes that established permitted investments, asset allocation limits and issuer limits, credit ratings requirements and maturity limits to protect the County’s investment assets. The County maintains common investment pool portfolios for the use of all available surplus funds (“Surplus Funds”) and a separate portfolio which is held in an irrevocable trust for the St. Johns County OPEB Employee Trust Fund (“OPEB Trust Fund”). In addition, investments are separately held by the County’s special revenue, debt service, capital projects and enterprise funds. The County categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.


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The County has the following recurring fair value measurements as of September 30, 2016:

Level One Fixed Income and U. S. Treasury securities – valued daily based on institutional bond

quotes provided by FT Interactive

Domestic equities – valued daily based on market closing price by FT Interactive Data

International equity – valued based on various market factors provided by FT Interactive Data and Extel Financial Ltd.

Other Growth - valued daily based on market closing price by FT Interactive Data

Level Two Federal Instrumentalities – valued daily based on institutional bond quotes provided by

FT Interactive

Commercial paper – valued daily by institutional bond quotes provided by FT Interactive

Supranational Agencies – valued daily based on various market factors provided by Standard & Poor’s and Bloomberg

Municipal Obligations – valued daily based on various market and industry inputs provided by FT Interactive Data and Bloomberg

Corporate notes – valued daily based on various market and industry inputs provided

by FT Interactive Data Finally, Section 218.415, Florida Statutes, limits the types of investments that the County can invest in unless specifically authorized in the County’s investment policy. The County has a formal investment policy that allows for the following investments: the State Pool, United States Government Securities, United States Government Agencies, Federal Instrumentalities, Supranational Agencies, Non-negotiable Interest Bearing Certificates of Time Deposit or Saving Accounts, Repurchase Agreements, Commercial Paper Bankers’ Acceptances, Corporate Paper and Notes, State and/or Local Government Taxable and/or Tax-Exempt Debt, Registered Investment Companies (Mutual Funds) and Inter-governmental Investment Pools. The allowable investments of the OPEB Trust Fund include Registered Investment Companies (Equity, Real Estate and Fixed Income Mutual Funds) organized under the Investment Company Act of 1940 with holdings of domestic and/or international equities, high quality domestic fixed income investments, real estate and/or cash equivalents; Registered Investment Companies (Money Market Mutual Funds) that are rated AAm or AAm-G or better by Standard & Poor’s, or the equivalent by another rating agency; and Commingled Trusts (Equity, Real Estate and Fixed Income Trusts) organized by a bank under the Office of the Controller of the Currency guidelines with holding of domestic and/or international equities, high quality domestic fixed income investments, real estate and/or cash equivalents. Additionally, the OPEB Trust Fund may include Supranational Agencies,


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Banker’s Acceptances; Corporate Paper and Notes, Certificates of Deposits; Savings Accounts; Short-Term Corporate Obligations; Fixed Income Securities; U.S. Treasury, Federal Agencies and U.S. Government Guaranteed Obligation; Investment Grade Municipal Issues: Investment Grade Corporate Issues Including Convertibles; Common and Preferred Stocks; Real Estate Trusts and Private Real Estate in pooled vehicles. 1. Interest Rate Risk

The County’s Surplus Funds investment policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements. Investments of current operating funds will have maturities of no longer than twenty-four (24) months. Investments of bond reserves, construction funds, and other non-operating funds (“core funds”) shall have a term appropriate to the need for funds and in accordance with debt covenants. From time to time the above parameters may require modification in order to meet specific construction draw schedules or other predetermined operating, capital needs or to satisfy debt obligation but in no event shall exceed five years.

As of September 30, 2016, the County’s Surplus Fund portfolios had the following investments for which fair value levels are determined on a recurring basis and their effective duration presented in terms of years:

Surplus Fund Investments

Weighted Duration (Years)

Quoted Prices in Active

Markets for Identical Assets

(Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant Unobservable

Inputs (Level 3)

Total Investments

US Treasury - Bond/Notes 2.20 47,615,600$ 47,615,600$

Federal Instrumentalities - Bond/Notes

FHLB Notes 2.36 45,277,194$ 45,277,194

FHLMC Notes 2.27 14,984,577 14,984,577

FNMA Notes 2.58 25,412,363 25,412,363

- 85,674,134 - 85,674,134

Commercial Paper 0.33 8,546,561 8,546,561

Corporate Notes 1.77 45,213,664 45,213,664

Supranational Agencies 1.72 14,169,262 14,169,262

Municipal Obligations 2.01 3,092,317 3,092,317

- 71,021,804 - 71,021,804

Total Investments 2.08 47,615,600$ 156,695,938$ -$ 204,311,538$


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This risk is minimized in the OPEB Trust Fund because the County utilizes “effective duration” as a measurement of interest rate risk for Trust assets. Trust Assets are a mix of both equity and fixed income-oriented mutual funds. As of September 30, 2016, the portion of assets susceptible to interest rate risk (including Fixed Income and Cash Equivalent asset classes) was 33.7% and had an effective duration of 4.25 years. Effective duration is not a characteristic applicable to equity-oriented mutual funds (including Domestic and International Equity, REIT and inflation Hedged asset classes) and thus is not relevant to GASB Statement No. 40.

As of September 30, 2016, OPEB Trust Fund investment holdings consist of $28,990,326 in Domestic Equity, International Equity, Fixed Income and Other Growth investments which are reported at fair value in accordance with GASB Statement No. 31, “Accounting and Financial Reporting for Certain Investments and for External Investment Pools”.

As of September 30, 2016, the Trust consisted of the following asset classes and percent allocation, as well as fair value levels of those assets for which fair values are determined on a recurring basis:

Asset Class

Percent Allocation

Quoted Prices in Active

Markets for Identical

Assets (Level 1)

Significant Other

Observable Inputs

(Level 2)

Significant Unobservable

Inputs (Level 3)

Total Investments

Domestic Equity 45.51% 13,200,048$ 13,200,048$ International Equity 16.47% 4,778,346 4,778,346

Fixed Income 33.69% 9,770,091 9,770,091

Other Growth 4.28% 1,241,841 1,241,841

Total investments measured at fair value 99.95% 28,990,326$ -$ -$ 28,990,326$

Money Market Funds 0.05% 13,658 Total investments 100.00% 29,003,984$

Interest receivable on the County’s investment portfolios amounted to $303,556 as of September 30, 2016. Included in the Surplus Fund portfolio, the County has $4.04 million in Federal Instrumentalities that have, at the issuer’s discretion, provisions to call their obligations.

2. Credit Risk The County’s Surplus Funds investment policy permits for investments in the following investments, which are limited to credit quality ratings from nationally recognized rating agencies as follows:

Money Market Mutual funds shall be rated “AAm” or “AAm-G” or better by Standard & Poor’s or the equivalent by another national rating agency.


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State and/or local government taxable and/or tax-exempt debt, general obligation and/or revenue Bonds, rated at least “Aa” by Moody’s or “AA” by Standard & Poor’s for long-term debt, or rated at least “MIG-2” by Moody’s and “SP-2” by Standard & Poor’s for short-term debt.

Bankers’ acceptances issued by a domestic bank, which has at the time of purchase an unsecured, uninsured and un-guaranteed obligation rating, at the time of purchase, of at least “Prime-1” by Moody’s Investors Services or “A-1” by Standard & Poor’s. The bank must be ranked in the top fifty (50) United States banks in terms of total assets by the American Banker’s yearly report. Additionally, the bank shall not be listed with any recognized credit watch information service.

Commercial paper of any United States company that is rated, at the time of purchase, “Prime-1” by Moody’s and “A-1” by Standard & Poor’s (prime commercial paper). Additionally, if backed by a letter of credit (LOC”), the long term debt of the LOC provider must be rated at lease “A” by at least two nationally recognized rating agencies and must be ranked in the top fifty (50) United States banks in terms of total assets by the American Banker’s yearly report. The company shall not be listed with any recognized credit watch information service.

Additionally, the OPEB Trust Fund’s investment policy for investments in fixed income securities and cash equivalents that are limited to credit quality ratings from nationally recognized rating agencies as follows:

Fixed Income Fixed Income Investments shall be high quality, marketable securities with a preponderance of the investments in (1) U.S. Treasury, Federal Agencies and U.S. Government guaranteed obligations, and (2) investment grade municipal or corporate issues including convertibles. The overall rating of the fixed income assets shall be at least “A”, according to one of the three rating agencies (Fitch, Moody’s or Standard and Poor’s).

Cash Equivalents

Cash equivalent reserves shall consist of cash instruments having a quality rating of “a-1”, “P-1” or higher, as established by Moody’s or Standard & Poor’s. Bankers’ acceptances, certificate of deposit and savings accounts must be made of United States banks or financial institutions or United States branches of foreign banks, which are federally insured with unrestricted capital of at least $50 million. Short-term corporate obligations must be rated “A” or better by Moody’s or by Standard & Poor’s.


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As of September 30, 2016, the portion of assets susceptible to credit risk (including Fixed Income and Cash Equivalent asset classes) had a weighted average credit quality of “BB-AAA”. Credit quality is not a characteristic applicable to equity-oriented mutual Funds (including Domestic and International Equity, REIT and inflations Hedged asset classes) and this is not relevant for GASB Statement No. 40 purposes.

A

Investment Type Fair Value Exempt AAA or greater

Surplus Fund

Federal Instrumentalities‐Bond Notes 133,289,734 133,318,184$

Commercial Paper 8,546,561 8,546,561

Corporate Notes 45,213,664 45,213,664

Supranational Agencies 14,169,262 14,169,262$

Municipal Obligations 3,092,317 3,092,317

Subtotal 204,311,538$ ‐$ 14,169,262$ 190,170,726$

BB

Investment Type Fair Value Exempt AAA or greater

OPEB Trust Fund

Investment Assets:

Taxable Bonds‐Fixed Income Funds 9,770,091$ 9,770,091$

Stocks‐Equity Funds 17,978,394 17,978,394$

Other Growth 1,241,841 1,241,841

Liquidity Assets:

Cash Equivalents 13,658 13,658$

Subtotal 29,003,984 19,220,235 13,658 9,770,091$

Total 233,315,522$ 19,220,235$ 14,182,920$ 199,940,817$

3. Custodial Credit Risk The County’s investment policy requires securities, with the exception of certificates of deposits, to be held with a third party custodian; an all securities purchased by, and all collateral obtained by the County should be properly designated as an asset of the County. The securities must be held in an account separate and apart from the assets of the financial institution. A third party custodian is defined as any bank depository chartered by the Federal Government, the State of Florida, or any other state or territory of the United States which has a branch or principal place of business in the State of Florida, or by a national association organized and existing under the laws of the United States which is authorized to accept and execute trusts and which is doing business in the State of Florida. Certificates of deposits will be placed in the provider’s safekeeping department for the term of the deposit. Finally, the County’s investment policies require all assets be held with the custodial bank under a contractual agreement signed by the Chairman of the Board and the Clerk as Chief Financial Officer. All securities purchased by and all collateral obtained by the investment managers and/or the Clerk are designated as assets of the Surplus Fund or OPEB Trust Fund respectively. No withdrawal of securities, or transfer of funds, in whole or in part, can be made from safekeeping except by written


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authorization of the Clerk. Securities transactions between a broker/dealer and the custodial bank involving the purchase of sale of securities by transfer of money or securities must be made on a “delivery vs. payment” basis, if applicable, to ensure that the custodial bank will have the security or money, as appropriate, in hand at the conclusion of the transaction.

As of September 30, 2016, The County’s Surplus Fund and OPEB Trust Fund investment portfolios were held with a third-party custodian as required by the County’s investment policies. 4. Concentration of Credit Risk

The County’s investment policies have established asset allocation and issuer limits on the following investments. This is designed to reduce concentration of credit risk of the County’s Surplus Fund and OPEB Trust Fund portfolios. The table below reflects the allowed distribution by investment type.

Surplus Fund Trust FundAlloc a tion Alloc a tion Trust Fund

Pe rmitted by Pe rmitte d by Alloca tionSe c urity Type Policy Polic y Ta rge t

Investment Assets Domestic Equity 26- 46% 36% International Equity 13- 33% 23% REIT 0- 12% 6% Fixed Income 20- 60% 35%Liquidity Assets Cash Equivalents 0% - 100% 100%United States Treasury Securities 100%United States Government Agency Securities 50%Federal Instrumentalities 1 80%Certificates of Deposit 50%Repurchase Agreements 50%Commercial Paper 35%Mortgage- Backed Securities 1 25%Bankers' Acceptances 35%State and/or Local Government Debt 20%Money Market Mutual Funds 50%Intergovernmental Investment Pool 25%

Guaranteed Investment Contracts 2 100%

Notes:

1. The combined total of Federal Instrumentalities and Mortgage Backed Securities can not be more than 80%.

2. The Guaranteed Investment Contracts, which are not allowed under the County Investment Policy, werespecifically adopted and authorized under the terms of the Resolution for the Series 2006, Transportation and SalesTax Revenue Bonds. The permitted allocation was 100% of total bond proceeds.


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Additionally, an effort shall be made, to the extent practical, prudent and appropriate, to select investments, commingled funds and/or mutual funds that have investment objectives and policies that are consistent with the County’s policies. However, given their nature, it is recognized that there may be deviations between the policies and the objectives of the investments. A commingled fund or mutual fund will not be included in OPEB Trust Fund portfolio unless it complies with the Investment Company Act of 1940’s diversification requirement.

Equity

Investment in common stocks, preferred stocks and publicly traded Real Estate Investment Trusts shall be limited to not more than 5% of the total stock portfolio valued at market may be invested in the common stock of any one corporation. Ownership of the shares of one company shall not exceed 2% of those outstanding. Not more than 25% of stock valued at market may be held in any one industry category.

Fixed Income

Fixed income securities of any one issuer shall not exceed 5% of the total bond portfolio, including, U.S. Treasury/Federal Agency issues, at time of purchase. The 5% limitation does not apply to issues of the U.S. Treasury or other Federal Agencies.

5. Foreign Currency Risk

The County investment policy does not allow for investments in foreign currency therefore the County has no exposure to foreign currency risk. However, the Trust’s investment policy allows for non-U.S. investments through the use of commingled funds and/or mutual funds. All assets of the Trust are invested in funds denominated in U.S. Dollars. There is no direct foreign currency risk; however, underlying securities of these funds may be denominated in currencies other than the U.S. Dollar.

4. ACCOUNTS AND NOTES RECEIVABLE

Accounts receivable of the $1.1 million in the General Fund consist primarily of ambulance service accounts of $2.4 million and are reported net of an allowance for doubtful accounts of $1.4 million at September 30, 2016. The allowance represents 59% of the gross ambulance service accounts receivable at September 30, 2016. The balance of the receivable consists of restitution, returned checks, and miscellaneous service fees.

Accounts receivable of the Non-major Governmental Funds consist primarily of cultural event receivables, returned checks, and other miscellaneous fees. An allowance for doubtful accounts is not considered necessary.


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4. ACCOUNTS AND NOTES RECEIVABLE (continued)

Accounts receivable contained in the Enterprise Funds consist of the following receivables and their related allowance for doubtful accounts at September 30, 2016:

Balance Allowance Net

St. Johns County Utilities Fund 1,827,830$ 80,531$ 1,747,299$ Ponte Vedra Utilities Fund 727,356 18,439 708,917 Solid Waste Fund 583,083 1,000 582,083 Convention Center 455,156 217,322 237,834

3,593,425$ 317,292$ 3,276,133$

Notes receivable contained in the Statement of Net Position for Governmental Activities includes $501,900 in General Fund short-term notes with the Housing Finance Authority. The notes were for construction costs on Community Workforce Housing Innovation Pilot homes. The notes require interest at LIBOR plus 150 basis points and will be repaid with the proceeds from the sale of the homes at closing. Also, notes receivable contained in the Statement of Net Position for Governmental Activities includes $300,000 in State Housing Initiatives Partnership (SHIP) program funds. The notes were provided as a “zero-percent interest” loan to assist in the development of multifamily housing units for low and very-low income rental housing. Included in this fiscal year, is the addition of two Impact Fee Notes. Their purpose is to allow homeowners the ability to pay their impact fees over a period that’s no greater than three years and interest rates which are based on LIBOR. Homeowners must meet certain income criteria to be able to participate.

Finally, included in notes receivable on the Statements of Net Position for the Business Activities is $72,570 of unit connection fee notes receivable. The amount due during the next fiscal year is $64,270. Water and sewer unit connection fees are non-refundable fees charged to new customers of the utility system as a capacity charge. The related notes receivable bear interest at 5.00% and are generally due in annual or monthly installments of principal and interest, with maturities of two to twenty years. None of the above notes receivable are collateralized. At September 30, 2016, an allowance for doubtful accounts was not considered necessary.


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5. CAPITAL ASSET ACTIVITY Capital asset activity for the year ended September 30, 2016, is as follows: Primary Government

Beginning Balance September 30, 2015 Additions

Dispositions/ Reclassif ications

Ending Balance September 30, 2016

Governmental activities:

Capital assets not being depreciated: Land 477,103,467$ 4,343,065$ 65,400$ 481,381,132$ Construction in progress 58,692,583 15,770,908 18,376,170 56,087,321 Total capital assets not being depreciated 535,796,050 20,113,973 18,441,570 537,468,453$

Other capital assets: Building & other improvements 298,345,326 2,295,274 594,344 300,046,256 Equipment 85,944,353 11,271,509 7,827,843 89,388,019 Infrastructure 606,846,118 7,532,819 614,378,937 Total other capital assets 991,135,797 21,099,602 8,422,187 1,003,813,212

Less accumulated depreciation for: Building & other improvements 84,959,161 5,370,922 493,113 89,836,970 Equipment 61,537,063 8,575,314 6,959,098 63,153,279 Infrastructure 139,222,418 18,605,367 157,827,785 Total accumulated depreciation 285,718,642 32,551,603 7,452,211 310,818,034 Other capital assets, net 705,417,155 (11,452,001) 969,976 692,995,178 Governmental activities capital assets, net 1,241,213,205$ 8,661,972$ 19,411,546$ 1,230,463,631$



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5. CAPITAL ASSET ACTIVITY (continued)

Primary Government

Beginning Balance September 30, 2015 Additions

Dispositions/ Reclassifications

Ending Balance September 30, 2016

Business-type activities:

Capital assets not being depreciated: Land 109,267,920$ 2,152,121$ 111,420,041$ Construction in progress 43,431,478 11,452,038 14,356,410$ 40,527,106 Total capital assets not being depreciated 152,699,398 13,604,159 14,356,410 151,947,147

Other capital assets: Intangible assets 80,776 80,776 Building & other improvements 34,050,526 537,335 34,587,861 Equipment & systems 379,647,206 50,464,067 1,056,818 429,054,455 Total other capital assets 413,778,508 51,001,402 1,056,818 463,723,092

Less accumulated amortization and depreciation for: Intangible assets 4,039 4,039 8,078 Building & other improvements 33,696,405 983,541 34,679,946 Equipment & systems 106,996,925 12,245,464 1,035,483 118,206,906 Total accumulated depreciation 140,697,369 13,233,044 1,035,483 152,894,930 Other capital assets, net 273,081,139 37,768,358 21,335 310,828,162 Business-type activities capital assets, net 425,780,537$ 51,372,517$ 14,377,745$ 462,775,309$



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5. CAPITAL ASSET ACTIVITY (concluded)

Depreciation expense was charged to the functions of the primary government as follows:

Governmental activities: General government 1,909,577$ Public safety 9,479,290 Physical environment 194,991 Transportation 17,556,997 Economic environment 21,880 Human services 512,172 Culture and recreation 2,759,898 Court related 116,798 Total depreciation expense - Governmental activities 32,551,603$

Depreciation and amortization expense was charged to the functions of the primary government as follows

Business-type activities: Depreciation Amortization St. Johns County Utilities 11,325,101$ 2,720$ Ponte Vedra Utiltiies 1,320,717 1,319 Solid Waste 362,446 Convention Center 220,741 Total depreciation expense - Business-type activities 13,229,005$ 4,039$

13,233,044$

6. LONG-TERM OBLIGATIONS

A. Long-term obligations at September 30, 2016 are comprised of the following: General Long-Term Obligations Revenue Bonds: 52,315,000 – 2015 Sales Tax Revenue and Refunding Bonds: secured by a lien upon and pledge of local government half-cent sales tax to refund a portion of the outstanding Sales Tax Revenue Refunding Bonds, Series 2006, which included funding of various capital improvements within the County, pay the costs of additional County-wide capital improvements, fund the debt service reserve account surety bond and pay certain costs of issuance; due in annual installments of $1,475,000 to $6,290,000 through October 1, 2036, plus interest at 5.0% payable semiannually, plus unamortized premium of $6,801,499. The approximate balance of the pledge, which equals the remaining principal and interest is $88,577,349. During FY16, $17,031,157 was recognized in sales tax revenues and $2,938,275 was paid for debt service. $58,641,499


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6. LONG-TERM OBLIGATIONS (continued) $24,755,000 – 2015 Transportation Improvement Revenue Refunding Bonds;

secured by a lien upon and pledge of gas tax revenues for the cost of refunding a portion of the County’s outstanding Transportation Improvement Revenue Bonds, Series 2006, and pay certain costs of issuance; due in annual installments of $625,000 to $3,610,000 through October 1, 2035, plus interest at 3.125% to 5.0% payable semiannually plus unamortized premium of $1,881,007. The approximate balance of the pledge, which equals the remaining principal and interest is $39,754,313. During FY16, $9,150,467 was recognized in gas tax revenues and $1,040,794 was paid for debt service. $26,636,007 $15,300,000 – 2014 Capital Improvement Revenue Refunding Bonds; secured by a lien upon and pledge of State Revenue Sharing Funds to advance refund a portion of the Series 2005, St Johns County, Florida, Capital Improvement Revenue and Refunding Bonds and pay certain costs of issuance; due in annual installments of $575,000 to $1,020,000 through July 1, 2035 plus interest at 3.0% to 5.0%, payable semiannually plus unamortized premium of $897,830. The approximate balance of the pledge, which equals the remaining principal and interest, is $22,037,222. During FY16, $5,298,895 was recognized as State Revenue Sharing Revenues and $1,165,806 was paid for debt service. $15,642,830 $4,500,000 – 2014 Taxable Capital Improvement Revenue Bonds; secured with a governmental commitment to budget and appropriate necessary non-ad valorem revenues for the construction, equipping, and installation of a new health and human services building and pay certain costs of issuance; due in annual installments of $255,000 to $395,000 through October 1, 2028 and interest at 3.99%, payable semiannually. The approximate balance of the pledge, which equals the remaining principal and interest, is $4,945,106. During FY16 $55,479,000 was recognized as the average legally available amount of non-ad valorem revenues and $414,388 was paid for debt service. $3,870,000 $13,137,000 – 2012 Capital Improvement Revenue Bonds; secured with a Governmental commitment to budget and appropriate necessary non-ad valorem revenues for the construction, equipping, and installation of an intergovernmental communications system and pay certain costs of issuance; due in annual installments of $1,114,000 to $1,255,000 through October 1, 2023 and interest at 1.9999%, payable semiannually. The approximate balance of the pledge, which equals the remaining principal and interest, is $8,957,686. During FY16 $55,479,000 was recognized as the average legally available amount of non-ad valorem revenues and $1,279,471 was paid for debt service. $8,282,000


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6. LONG-TERM OBLIGATIONS (continued)

$41,030,000 - 2012 Sales Tax Revenue Refunding Bonds: secured bya lien upon and pledge of local government half-cent sales tax to refund the outstanding Sales Tax Revenue Refunding Bonds, Series 2004, whichincluded funding of capital improvements for the Vilano Beach CRA, fundthe debt service reserve account surety bond and pay certain costs ofissuance; due in annual installments of $230,000 to $3,180,000 throughOctober 1, 2034, plus interest at 2.5% to 5.0% payable semiannually,plus unamortized premium of $2,925,073. The approximate balance ofthe pledge, which equals the remaining principal and interest is$56,589,977. During FY16, $17,031,157 was recognized in sales taxrevenues and $1,914,369 was paid for debt service. 43,095,073$

$25,050,000 - 2012 Transportation Improvement Revenue RefundingBonds: secured by a lien upon and pledge of gas tax revenues for thecost of refunding a portion of the County's outstanding TransportationImprovement Revenue Bonds, Series 2003, and pay certain costs of issuance; due in annual installments of $1,035,000 to $1,920,000 throughOctober 1, 2032; plus interest at 3.0% to 5.0% payable semiannuallyplus unamortized premium of $1,298,319. The approximate balance ofthe pledge, which equals the remaining principal and interest is$33,534,782. During FY16, $9,150,467 was recognized in gas taxrevenues and $2,012,775 was paid for debt service. 24,283,319$

$10,950,000 - 2009A Sales Tax Revenue Refunding Bonds: secured bya lien upon and pledge of local government half-cent sales tax to refundthe outstanding Sales Tax Revenue Refunding Bonds, Series 1998,fund the debt service reserve account surety bond and pay certain costsof issuance; due in annual installments of $1,395,000 to $1,505,000through October 1, 2019; plus interest at 4.0% to 4.25% payablesemiannually less unamortized discount of $37,254. The approximatebalance of the pledge, which equals the remaining principal and interestis $4,676,433. During FY 16, $17,031,157 was recognized in sales taxrevenues and $1,571,519 was paid for debt service. 4,312,746$

$23,520,000 - 2009 Sales Tax Revenue and Refunding Bonds; secured by a

lien upon and pledge of local government half-cent sales tax revenues forthe construction of various capital improvements, to refund the outstandingCommercial Paper Revenue Note, Draw No. A-2-3, fund the cash debtservice reserve account and pay certain costs of issuance; due in annualinstallments of $1,065,000 to $1,820,000 through October 1, 2028; plusinterest at 4.99% payable semiannually. The approximate balance of thepledge, which equals the remaining principal and interest is $22,937,501.During FY16 $17,031,157 was recognized in sales tax revenues and $1,911,453 was paid for debt service. 16,950,000$


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$4,701,000 - 2011 St. Johns County Community Redevelopment AgencyRedevelopment Revenue Refunding Note - Flagler Estates Project; securedby a lien upon and pledge of tax increment financing revenues within the Flagler Estate Road and Water Control District to refund the outstanding Series2007 note and pay certain costs of issuance; due in annual installments of$466,000 to $504,000 through August 1, 2021; and interest at 1.80%; payablesemiannually. The approximate balance of the pledge, which equals theremaining principal and interest is $2,548,337. During FY16, $77,846 wasrecognized in tax increment financing revenues and $510,921 was paid fordebt service. 2,423,000$

Total Revenue Bonds and Notes Payable 204,136,474$

$2,169,000 Pooled Commercial Paper Loan; secured with a governmentalcommitment to budget and appropriate necessary non-ad valorem revenuesfor the construction of various capital improvement; due in annual installments of$135,000 to $648,000 through December 4, 2018; interest rates vary dependingon market on the day of sale and are charged as a blended rate of the notesoutstanding in any particular month; due monthly. The approximate balance of the pledge, which equals the remaining principal and estimatedinterest, is $1,362,484. During FY16 $55,479,000 was recognized asthe average legally available amount of non-ad valorem revenues and$797,118 was paid for debt service. 1,351,000$

$5,134,778 Obligations under the State Revolving Loan Trust Fund; securedby a lien upon and pledge of revenues received within the Municipal ServiceBenefit Unit ("MSBU") for the construction ($5,134,778) and capitalizedinterest ($134,100) of capital projects within the Ponte Vedra MunicipalService District; due in semiannual installments of $173,777 for principal of$131,574 to $171,251 through October 15, 2025; and interest of 2.95%. Theapproximate balance of the pledge, which equals the remaining principal andinterest, is $3,081,489. During FY16 $346,553 was recognized in MSBUrevenues and $347,554 was paid for debt service. 2,861,217$

Obligations under Capital Leases 4,467,940$ Accrued compensated absences 10,611,181$ Accrued pension liabiity 157,695,250$

Total General Long-Term Obligations 381,123,062$


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Proprietary Fund Long-Term Obligations

Revenue Bonds:

$28,270,000 - 2014 St Johns County Utilities Water and Sewer RevenueRefunding Bonds; secured by a lien upon and pledge of County water andsewer net revenues to advance refund a portion of the County's outstandingWater and Sewer Revenue Refunding bonds, Series 2006 and due in annualinstallments of $880,000 to $2,160,000 through June 1, 2036 interest at 4%to 5%, payable semiannually, plus unamortized premium of $4,228,149. The approximate balance of the pledge, which equals the remaining principal andinterest is $49,055,782. During FY16 $18,584,770 was recognized in netrevenues and $1,171,059 was paid debt service. 32,498,149$

$8,081,000 - 2014 Taxable Capital Improvement Revenue Refunding Bondssecured by a lien upon and pledge of County ConventionCenter revenues and transfers to refund the outstanding Series 2004Convention Center bonds and pay certain costs of issuance; due inannual installments of $1,292,000 to $1,437,000 through December 1,2020; interest at 2.1% payable semiannually. The approximatebalance of the pledge, which equals the remaining principal and interestis $7,137,805. During FY16 $1,450,072 was recognized in ConventionCenter revenues and transfers; $1,408,633 was paid for debt services. 6,820,000$

$55,440,274 - 2013 St Johns County Utilities Water and Sewer RevenueRefunding Bonds; secured by a lien upon and pledge of County water and sewer net revenues for the current refunding of the outstanding Water andSewer Revenue Refunding Bonds, Series 1998 and the advance refundingof a portion of the the outstanding Water and Sewer Revenue Bonds, Series 2004, construct various County utility capital improvements, fund thedebt service reserve account, pay certain cost of issuance and pay capitalizedinterest on the Series 2013 bonds; due in annual installments of $765,000to $3,337,000 through June 1, 2042; interest at 3% to 5%, payable semiannuallyand annually for capital appreciation bonds where interest is due at maturity plusaccredited interest on capital appreciation bonds of $4,306,272 including un-amortized premium of $2,821,018. The approximate balance of the pledge,which equals the remaining principal and interest is $77,852,431. During FY16accrued interest on the capital appreciation bonds was $1,248,260,$18,584,770 was recognized in net revenues and $1,763,920 was paid fordebt service. 60,977,564$


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Proprietary Fund Long-Term Obligations

$30,620,000 - 2007 Ponte Vedra Utilities Water and Sewer RevenueBonds; secured by a lien upon and pledge of the Ponte Vedra water andsewer net revenues for the acquisition of Intercoastal Utility, construction of various Ponte Vedra utility capital improvements, capitalize a portionof the interest, fund the debt service reserve account surety bond andpay certain costs of issuance; due in annual installments of $820,000 to$2,025,000 through October 1, 2037; and interest at 4.0% to 5.0%payable semiannually plus unamortized premium of $258,695. Theapproximate balance of the pledge, which equals the remaining principaland interest, is $44,935,251. During FY16, $6,525,796 was recognizedin net revenues and $2,130,644 was paid for debt service. 27,903,695$

$30,920,000 - 2006 Ponte Vedra Utilities Water and Sewer RevenueBonds; secured by a lien upon and pledge of the Ponte Vedra water andsewer net revenues for the acquisition of St Johns Service Co. Utility,construction of various Ponte Vedra utility capital improvements, fundthe debt service reserve account surety bond and pay certain costs ofissuance; due in annual installments of $860,000 to $1,920,000 throughOctober 1, 2035; interest at 4.0% to 5.0% payable semiannuallyplus unamortized premium of $406,838. The approximate balanceof the pledge, which equals the remaining principal and interest, is$38,727,701. During FY16 $6,525,796 was recognized in net revenuesand $2,014,225 was paid for debt service. 25,116,838$

$42,830,000 - 2006 St. Johns County Utilities Water and SewerRevenue Bonds; secured by a lien upon and pledge of county water andsewer net revenue for the construction of various county utility capitalimprovement, funds the debt service reserve account surety bond andpay certain costs of issuance; due in annual installments of $375,000to $570,000 through June 1, 2026; and interest at 4.0% to 5.0%payable semiannually plus unamortized premium of $189,694.The approximate balance of the pledge, which equals the remainingprincipal and interest is $6,087,040. During FY16 $18,584,770 wasrecognized in net revenues and $1,526,553 was paid for debt service. 4,849,694$


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$14,680,398 - 1991A St. Johns County Utilities Water and SewerRevenue Bonds; secured by a lien upon and pledge of County water andsewer net revenues for the acquisition of St. Augustine Shores Utility,construction of various County utility capital improvements, fund the debtservice reserve account surety bond and pay certain cost of issuance;due in annual installments of $460,629 to $607,731 through June 1, 2021;interest at 7.05% payable annually for capital appreciationbonds where interest is due at maturity including accreted interest oncapital appreciation bonds of $12,483,296; less unamortized discountof $33,851. The approximate balance of the pledge, which equals theremaining principal and interest is $15,107,657. During FY16 accruedinterest on the capital appreciation bonds was $1,176,819; $18,584,770was recognized in net revenues and $3,625,000 was paid for debt service. 15,107,657$

Total Revenue Bonds 173,273,597$

$1,950,268 Obligations under St. Johns County Utilities State Revolving LoanTrust Fund; secured by a subordinated lien upon and pledge of County Waterand Sewer net revenues for the construction $1,924,814 and capitalizedinterest $25,454 of County utility capital projects; due in a final semiannualinstallment of $60,772 on November 15, 2016; with interest of 2.59%. The approximate balance of the pledge, which equals the remaining principal andinterest is $61,035. During FY16 $7,008,804 was recognized in net revenues available for subordinated debt and $122,090 was paid for debt service. 60,772$

$8,503,771 Obligations under St. Johns County Utilites State Revolving LoanTrust Fund; secured by a subordinated lien upon and pledge of County Waterand Sewer net revenues for the construction $8,184,068, loan service feeof $163,681 and capitalized interest $156,022.02 for County utility capitalprojects; due in semiannual installments of $170,771 to $268,982 through July 15, 2034; and interest at 1.305% . The approximate balance of the pledge,which equals the remaining principal and interest is $8,772,479. During FY16$7,008,804 was recognized in net revenues available subordinated debt and$542,805 was paid for debt service. 7,785,958$


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$6,838,510 Obligations under Ponte Vedra Utilities State Revolving

Fund Loan; secured by a subordinated lien upon and pledge of

water and sewer net revenues for the construction of $6,742,410 and

capitalized interest of $96,100 of Ponte Vedra Utility capital projects;

due in semiannual installments of $214,925 through February 15, 2036

at an interest rate of 2.12%. The approximate balance of the pledge,

which equals the remaining principal and interest is $6,350,772. During

FY16, $6,525,796 was recognizedin net revenues available for subordinated

debt and $56,719 was paid fordebt service. $5,427,720

Obligations under Capital Leases $1,259,143

Landfill closure/post-closure care $4,896,981

Accrued Compensated Absences $900,123

Net pension liability $6,976,804

Total Proprietary Fund Long-Term Obligations 200,581,098$

B. Debt service requirements to maturity on the County’s Long-Term Debt at September 30, 2016 are as follows:

Year

Ending

Sept. 30

Interest Principal Interest Principal Interest Principal

2017 8,571,791 9,148,089 8,557,220 6,020,426 17,129,011 15,309,757

2018 8,249,178 9,389,966 8,231,901 6,419,679 16,481,079 15,809,645

2019 7,905,911 9,295,078 7,862,548 6,566,820 15,768,459 15,861,898

2020 7,541,949 9,701,431 7,491,534 6,730,888 15,033,483 16,432,319

2021 7,130,025 10,108,033 7,122,213 6,914,711 14,252,238 17,022,743

2022‐26 29,200,154 50,539,620 23,426,943 39,180,450 52,627,097 89,720,070

2027‐31 18,558,358 50,065,000 17,683,891 41,175,601 36,242,249 91,240,601

2032‐36 7,263,094 46,335,000 9,668,807 37,703,119 16,931,901 84,038,119

2037‐41 2,033,825 9,345,000 2,033,825 9,345,000

2042 121,134 1,690,000 121,134 1,690,000

94,420,460$ 194,582,217$ 92,200,016$ 161,746,694$ 186,620,476$ 356,470,152$

Governmental Activities Business‐Type Activities Totals


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B. Long-term debt transactions of the County Fiscal Year 2016 are summarized below:

Balance BalanceOctober 1, September 30, Due within

2015 Additions Deductions 2016 one yearTaxable capital improvement revenue bonds, Series 2014 4,120,000$ 250,000$ 3,870,000$ 255,000$

Capital improvement revenue bonds, Series 2012 9,374,000 1,092,000 8,282,000 1,114,000

Revenue sharing revenue and refunding revenue bonds, Series 2014 15,300,000 555,000 14,745,000 575,000

Sales tax revenue refunding bonds, Series 2015 52,315,000 475,000 51,840,000 1,475,000

Sales tax revenue refunding bonds, Series 2012 40,395,000 225,000 40,170,000 230,000

Sales tax revenue refunding bonds, Series 2009A 5,695,000 1,345,000 4,350,000 1,395,000

Sales tax revenue bonds, Series 2009 17,965,000 1,015,000 16,950,000 1,065,000

Sales tax revenue refunding bonds, Series 2006 995,000 995,000

Transportation improvement revenue bonds, Series 2015 24,755,000 24,755,000 625,000

Transportation improvement revenue bonds, Series 2012 23,980,000 995,000 22,985,000 1,035,000

Transportation improvement revenue bonds, Series 2006 570,000 570,000

Community Redevelopment Agency refunding note, Series 2012 2,882,000 459,000 2,423,000 466,000

Total Revenue Bonds 198,346,000 7,976,000 190,370,000 8,235,000

Plus original issue premium 14,537,275 733,547 13,803,728

Less original issue discount 49,672 12,418 37,254

Total Revenue Bonds 212,833,603 8,697,129 204,136,474 8,235,000

Obligations under capital leases 4,811,609 1,361,807 1,705,476 4,467,940 1,433,575

Obligations under State Revolving Loan, Series 2005 3,118,655 257,438 2,861,217 265,089

$30M Commercial Paper Program 428,000 1,697,000 774,000 1,351,000 648,000

Accrued compensated absences 10,170,840 11,282,232 10,841,891 10,611,181 3,127,267

Net pension liability 87,159,647 70,535,603 157,695,250 1,104,820

Total General Long-Term Obligations 318,522,354$ 84,876,642$ 22,275,934$ 381,123,062$ 14,813,751$

GOVERNMENTAL ACTIVITIES


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Balance BalanceOctober 1, September 30, Due within

2015 Additions Deductions 2016 one year

Water and sewer revenue bonds

Series 2007, Ponte Vedra 28,435,000$ 790,000$ 27,645,000$ 820,000$ Series 2006, Ponte Vedra 25,530,000 820,000 24,710,000 860,000

Series 2014 28,270,000 - 28,270,000 880,000 Series 2013 54,590,274 740,000 53,850,274 765,000 Series 2006 5,925,000 1,265,000 4,660,000 375,000 Series 1991 3,309,552 651,340 2,658,212 607,731

Taxable capital improvement revenue bonds, Series 2014 8,081,000 1,261,000 6,820,000 1,292,000

Total bonds 154,140,826 -$ 5,527,340 148,613,486 5,599,731

Add accreted interest on capital appreciation bonds

Series 1991A 14,280,137 1,176,819 2,973,660 12,483,296 Series 2013 3,058,012 1,248,260 4,306,272

17,338,149 2,425,079 2,973,660 16,789,568

Plus original issue premium 8,288,237 383,843 7,904,394

Less original issue discount 41,325 7,474 33,851

Total Revenue Bonds 179,725,887 2,425,079 8,877,369 173,273,597 5,599,731

Obligations under State Revolving LoanSeries 1996 179,996 119,224 60,772 60,772 Series 2012 8,120,922 334,964 7,785,958 343,773 Series 2013 4,692,346 735,374 - 5,427,720 16,150

12,993,264 735,374 454,188 13,274,450 420,695

Obligations under capital lease 2,184,627 925,484 1,259,143 831,912

Landfill closure/post closure 5,176,855 279,874 4,896,981 326,465

Arbitrage Rebate -

Accrued compensated absences 893,559 939,357 932,793 900,123 222,392

Net pension liability 3,939,109 3,037,695 - 6,976,804 47,580

Total Proprietary Fund Long-Term Obligations 204,913,301$ 7,137,505$ 11,469,708$ 200,581,098$ 7,448,775$

BUSINESS-TYPE ACTIVITIES


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6. LONG-TERM OBLIGATION (continued)

Compensated absences typically have been liquidated in the general, other governmental and enterprise funds. D. The County has entered into lease agreements for office facilities and equipment that are

cancelable operating leases. The total cost of such leases was $629,109 for governmental activities and $59,492 for business-type activities for the year ended September 30, 2016.

E. The County is obligated under the terms of capital leases as follows:

Governmental Business-TypeActivities Activities

Asset: Building Improvements 3,493,570$ 550,657$ Equipment 5,827,533 Water and Sewer Systems 7,536,304 Less: Accumulated Depreciation 2,779,653 3,092,455 Total 6,541,450$ 4,994,506$

The annual requirements under these capital lease obligations as of September 30, 2016 are as

follows:

Year Ending Governmental Business-TypeSept. 30, Activities Activities

2017 1,517,983 856,353 2018 1,003,105 82,950 2019 477,539 56,759 2020 244,534 45,130 2021 244,523 45,128

2022-26 1,222,436 225,605 2027 122,226 22,557

4,832,346 1,334,482

(364,406) (75,339)

4,467,940$ 1,259,143$

Total minimum lease payment

Less amount representing interest

Present value of minimum payments

F. During the fiscal year, the County issued one financing instrument to finance multiple capital

improvements for the Fire District.

The Florida Local Government Finance Commission Pooled Commercial Paper Loan Program, Draw No. A-3-1 dated December 16, 2015. The $1,697,000 issue provided funds for Fire District E911 equipment, rescue equipment and certain costs of issuance associated with the bonds.


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G. In previous fiscal year, the County advance refunded several bond issues and placed the proceeds in an irrevocable trust to provide for all future debt service payments on the old bonds. As of September 30, 2016, $65,277,127 of the refunded bonds remains outstanding, but they are considered defeased. The amounts in escrow are sufficient to retire all outstanding bonds and interest. Since these bonds are legally defeased, they are not included in the financial statements.

H. Conduit Debt, Component Units

The Industrial Development Authority (“IDA”) has from time to time issued Industrial Development Revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance.

Neither the IDA, the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements.

As of September 30, 2016, there were several series of bonds outstanding. The aggregate principal amount payable could not be determined.

Additionally, the Housing Finance Authority (“HFA”) has issued bonds to provide financial assistance to private sector entities for the acquisition and construction of housing developments deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the HFA, the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2016, the HFA has four notes receivable at September 30, 2016, each secured by a Mortgage and Security Agreement. The first note ($70,000), issued August 31, 2015, and is a receivable over 30 years in monthly installments of $225.15 at 1% interest. The second note ($55,000), issued May 30, 2001 and modified September 26, 2002, is receivable over 20 years in monthly installments of $333 at 4% interest. The third note ($110,580), issued July 9, 2002, and is a receivable in full on or before March 27, 2026 without interest. The fourth note ($37,500), issued December 8, 2005, and is a receivable in full on or before September 15, 2012, with 3% interest. Since the original due date, the HFA has deferred payment on the loan multiple times. The latest due date was March 15, 2014. At September 30, 2016, the HFA has not made progress in restructuring the note. At September 30, 2016, the HFA had outstanding balances of $68,662, $24,131, $110,580, and $37,500 respectively, on these notes.


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Finally, the Educational Facilities Authority (“EFA”) issued bonds to a private sector entity for the acquisition, construction, rehabilitation and/or equipping of various academic buildings. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issuance. Neither the EFA, the County, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2016, there was one series of bonds outstanding. The aggregate principal amount payable could not be determined; however, the aggregate original issue amount was $10,000,000.



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7. INTERFUND BALANCES AND TRANSFERS

A. The compositions of interfund transfers:

Fund Type/Fund Transfer-in Transfer-outMAJOR GOVERNMENTAL FUNDS: General Fund 3,814,976$ 5,031,212$ County Transportation Trust Fund 96,471 Fire District 963,054 Community Redevelopment Agency 578,483 NONMAJOR GOVERNMENTAL FUNDS: SPECIAL REVENUE FUNDS: County Health Department 4,000 Court Facilities 739,169 Law Enforcement Trust 40,000 Community Based Care 89,002 Transit System 276,489 Crime Prevention Fund 84,060 Beach Fund 843,075 466,176 Pier 13,583 Tourist Development Tax 1,388,505 County Cultural Center 384,131 County Gulf Course 830,000 Public Building Impact Fees 2,021,567 Impact Fees Fire/EMS 521,612 Impact Fees Roads 1,500,000 Impact Fees Parks 382,888 E-911 Communications 1,200,955 Alarm Ordinance 19,189 Records Modernization 470,000

Subtotal: 2,459,469 8,814,932 DEBT SERVICE FUNDS: Transportation Refunding Bonds, Series 2012 625,000 Transportation Refunding Bonds, Series 2015 875,000 St Johns County CRA Note 510,834 Trane Capital Lease 241,466 TD Bank Public Facilities Note, Series 2014 414,057 Sales Tax Bonds, Series 2006 1,037,781 Sales Tax Bonds, Series 2009 1,260,781 Sales Tax Bonds, Series 2012 382,888 Sales Tax Refunding & Revenue Bonds, Series 2015 983,786 Chase Note, Series 2012 1,278,566 $30M Commercial Paper Loan Program 791,158

Subtotal: 8,401,317 CAPITAL PROJECT FUNDS: Beach Re-nourishment Project 574,097

Subtotal: 574,097 Non-Major Governmental Funds Total: 11,434,883 8,814,932

PROPRIETARY FUNDS: Convention Center 234,293

Subtotal: 234,293

Total: 15,484,152$ 15,484,152$


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7. INTERFUND BALANCES AND TRANSFERS (continued)

B. At September 30, 2016, interfund balances are as follows:

Fund Type/Fund Due To Due FromMAJOR GOVERNMENTAL FUNDS: General Fund 177,941$ 870,263$ County Transportation Trust Fund 50,150 46,131 Fire District 50,866 NONMAJOR GOVERNMENTAL FUNDS: SPECIAL REVENUE FUNDS:

Building Services 10,312 State Housing Initiatives Program 23 Community Based Care 6,960 Court Technology 202 Transit System 203 Crime Prevention Fund 5,195 Beach Fund 139,868 Pier 504 Tourist Development Tax 666 County Cultural Center 2,296 County Golf Course 766 E-911 91,072 Treasure Beach MSBU 347,179 Paving MSBU 17,680 Sheriff's Canteen 8,375 Sheriff's HIDTA Fund 241,496 Sheriff's Alarm Ordinance 2,177 Clerk's Court Modernization 1,896 Clerk's Teen Court 475 Clerk's Title IVD Fund 1,491

Nonmajor Governmental Funds Total: 878,836 - MAJOR PROPRIETARY FUNDS:

St. Johns County Utilities 20,336 Major Proprietary Funds Total: 20,336

INTERNAL SERVICE FUNDS:Health Insurance 252,043 Workers Compensation 9,692

Internal Service Funds Total: - 261,735 Total: 1,178,129$ 1,178,129$



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7. INTERFUND BALANCES AND TRANSFERS (concluded)

C. Outstanding interfund balances result mainly from working capital loans made from the County’s General Fund, Road Impact Fees Fund and Transportation Trust Fund to other county funds. D. Transfers between funds are used to move unrestricted available revenues from one fund to another

county fund to finance various programs, pay debt service, fund capital acquisitions and to provide subsidies for various grant programs.

E. In addition, long-term advances were made as follows:

The primary purpose of the advances, by the Board of County Commissioners, was to provide Capital and operating resources for private road construction, canal dredging and golf course operations that will be paid back over future periods, including interest, by establishing a Municipal Service Benefit Unit for the residents served by the roads, canals and to provide adequate operating revenues at the golf course. 8. EMPLOYEE BENEFITS

A. State of Florida - Defined Benefit Retirement Plan Plan Description – St. Johns County participates in the Florida Retirement System (the “System”), a cost-sharing multiple-employer public employee retirement system administered by the State of Florida, Department of Management Services, Division of Retirement, to provide retirement and survivor benefits to participating public employees. Chapter 121, Florida Statutes, establishes the authority for participant eligibility, contribution requirements, vesting eligibility and benefit provisions. The System issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by contacting the Florida Department of Management Services, Division of Retirement, and P.O. Box 9000, Tallahassee, Florida 32315-9000 or by calling (850) 488-6491. The Florida Retirement System (FRS) Pension Plan is a cost-sharing, multiple-employer defined benefit pension plan with a

Advance To Advance FromOther Funds Other Funds

General Fund: Treasure Beach 2,194,781$ CH Arnold 12,913Total General Fund: 2,207,694

County Transportation Trust: Deerwood 42,681

Non-major Special Revenue Funds: Treasure Beach (1178) $2,194,781 CH Arnold (1285) 12,913Total General Fund: 2,207,694

Deerwood (1287) 42,681

Total: 2,250,375$ 2,250,375$


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8. EMPLOYEE BENEFITS (continued)

Deferred Retirement Option Program (DROP) available for eligible employees. The FRS was established and is administered in accordance with Chapter 121, Florida Statutes. Retirees receive a lifetime pension benefit with joint and survivor payment options. FRS membership is compulsory for employees filling regularly established positions in a state agency, county agency, state university, state community college, or district school board, unless restricted from FRS membership under Sections 121.053 and 121.122, Florida Statutes, or allowed to participate in a defined contribution plan in lieu of FRS membership. Participation by cities, municipalities, special districts, charter schools and metropolitan planning organizations is optional. The Retiree Health Insurance Subsidy (HIS) Program is a cost-sharing, multiple-employer defined benefit pension plan established and administered in accordance with Section 112.363, Florida Statutes. The benefit is a monthly payment to assist retirees of the state-administered retirement systems in paying their health insurance costs. To be eligible to receive a HIS benefit, a retiree under one of the state administered retirement systems must provide proof of eligible health insurance coverage, which can include Medicare. Benefits Provided Benefits under the FRS Pension Plan are computed on the basis of age and/or years of service, average final compensation, and service credit. Credit for each year of service is expressed as a percentage of the average final compensation. For members initially enrolled before July 1, 2011, the average final compensation is the average of the five highest fiscal years’ earnings; for members initially enrolled on or after July 1, 2011, the average final compensation is the average of the eight highest fiscal years’ earnings. The total percentage value of the benefit received is determined by calculating the total value of all service, which is based on the retirement plan and/or class to which the member belonged when the service credit was earned. Eligible retirees and beneficiaries receive a monthly HIS payment equal to the number of years of service credited at retirement multiplied by $5. The minimum payment is $30 and the maximum payment is $150 per month, pursuant to Section 112.363, Florida Statutes. Contributions The contribution requirements of plan members and the County are established and may be amended by the Florida Legislature. Employees are required to contribute 3.00% of their salary to the FRS. The County’s contribution rates as of September 30, 2016, were as follows:

FRS HIS

Regular Class 5.86% 1.66%

Special Risk Class 20.91% 1.66%

Special Risk Class Administrative Support 26.40% 1.66%

Senior Management Service Class 20.11% 1.66%

Elected Officials 40.81% 1.66%

DROP from FRS 11.33% 1.66%

The County’s contributions for the year ended September 30, 2016, were $12,778,729 to the FRS and $1,816,671 to the HIS.


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Pension Liabilities and Pension Expense At September 30, 2016, the County reported a liability for its proportionate shares of the net pension liabilities. The net pension liabilities were measured as of June 30, 2016, and the total pension liabilities used to calculate the net pension liability were determined by an actuarial valuation dated July 1, 2016. The County’s proportions of the net pension liabilities were based on the County’s share of contributions to the pension plans relative to the contributions of all participating entities, actuarially determined.

FRS HISNet pension liability at September 30, 2016 $124,721,262 $39,950,792

Proportion at:Current measurement date 0.4939% 0.3428%Prior measurement date 0.4456% 0.3289%

Pension expense (benefit), year ended September 30, 2016 $19,795,866 $3,670,992

Deferred Outflows/Inflows of Resources Related to Pensions At September 30, 2016, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of

Resources

Deferred Outflows of Resources

Deferred Inflows of

ResourcesDifferences between expected and actual experience $9,549,619 $1,161,239 $90,993Changes of assumptions 7,545,263 $6,269,295Net difference between projected and actual earnings on pension plan investments 57,376,395 25,137,469 20,200Changes in proportion and differences between employer contributions and proportionate share of contributions 7,975,026 2,876,234 1,982,849 49,363Employer contributions subsequent to the measurement date 3,634,231 478,890Total $86,080,534 $29,174,942 $8,751,234 $140,356

FRS HIS


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Deferred outflows of resources related to employer contributions paid subsequent to the measurement date and prior to the employer’s fiscal year end will be recognized as a reduction of the net pension liability in the reporting period ending September 30, 2016. Other pension-related amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows:

Year ending September 30, FRS HIS2017 7,522,677$ 1,467,331$ 2018 7,522,677 1,467,331 2019 20,047,545 1,467,331 2020 14,191,962 1,467,331 2021 3,079,339 1,220,411 Thereafter 907,161 1,042,253 Total 53,271,361$ 8,131,988$

Actuarial Assumptions The total pension liability for each of the defined benefit plans, measured as of June 30, 2016, was determined by an actuarial valuation as of July 1, 2016, using the entry age normal actuarial cost method and the following significant actuarial assumptions: Inflation 2.60% 2.60%

Salary increases 3.25% 3.25%

Investment rate of return 7.60% N/A

Discount rate 7.60% 2.85%

Mortality assumptions for both plans were based on the Generational RP-2000 with Projection Scale BB. For both plans, the actuarial assumptions used in the July 1, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2008, through June 30, 2013. The following changes in key actuarial assumptions occurred in 2016:

FRS: The long-term expected rate of return and the discount rate was reduced to 7.6% from 7.65% by the 2016 Actuarial Assumption Conference.

HIS: The Municipal rate and the discount rate used to determine the total pension liability,

which was approved by the 2016 Actuarial Assumption Conference decreased from 3.80% to 2.85%.


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The long-term expected investment rate of return was not based on historical returns, but instead was based on a forward-looking capital market economic model. Each asset class assumption is based on a consistent set of underlying assumptions, and includes an adjustment for the inflation assumption. For the FRS Pension Plan, the table below summarizes the consulting actuary’s assumptions based on the long-term target asset allocation. The reduced investment return assumption of 7.60 percent, which was adopted by the FRS Actuarial Assumption Conference, conflicts with the consulting actuary’s judgment of a reasonable assumption as defined by Actuarial Standards of Practice No. 27.

Asset ClassTarget

Allocation

Annual Arithmetic

Return

Compound Annual

(Geometric) Return

Cash 1% 3.0% 3.0%Fixed income 18% 4.7% 4.6%Global equity 53% 8.1% 6.8%Real estate 10% 6.4% 5.8%Private equity 6% 11.5% 7.8%Strategic investments 12% 6.1% 5.6%

100%

Discount Rate The discount rate used to measure the total pension liability for the FRS Pension Plan was 7.60%. FRS’ fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Because the HIS Program is essentially funded on a pay-as-you-go basis, a municipal bond rate of 2.85% was used to determine the total pension liability for the program. The Bond Buyer General Obligation Bond 20-Bond Municipal Bond index was used as the applicable municipal bond index. Sensitivity Analysis The following table demonstrates the sensitivity of the net pension liability to changes in the discount rate. The sensitivity analysis shows the impact to the employer’s proportionate share of the net pension liability if the discount rate was 1.00% higher or 1.00% lower than the current discount rate.

1% DecreaseCurrent Discount

Rate 1% Increase 1% DecreaseCurrent Discount

Rate 1% Increase

6.60% 7.60% 8.60% 1.85% 2.85% 3.85%

Employer's proportionate share

of the net pension liability 229,620,287$ 124,721,262$ 37,406,677$ 45,832,635$ 39,950,792$ 35,069,183$

FRS HIS


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Pension Plans’ Fiduciary Net Position Detailed information about the pension plans’ fiduciary net position is available in the State’s separately issued financial reports.

B. State of Florida - Defined Contribution Retirement Plan Pursuant to Chapter 121, Florida Statutes, the Florida Legislature created the Florida Retirement Investment Plan (“FRS Investment Plan”), a defined contribution pension plan qualified under

Section 401(a) of the Internal Revenue Code. The FRS Investment Plan is an alternative available to members of the Florida Retirement System in lieu of the defined benefit plan. There is a uniform contribution rate covering both the defined benefit and defined contribution plans, depending on membership class. Required net employer contributions made to the plan during the year ended September 30, 2016 totaled $2,162,635.

C. Other Post-Employment Benefits

Plan Description – By County Resolution 08-151, St. Johns County established the St. Johns County Post Employment Welfare Benefits Trust Fund (“SJCPEWB”) which provides partial premium payments of eligible county retirees and their dependents for health care benefits; including health, prescription drugs, dental, vision and life insurance. Benefits are provided through a single employer defined benefit plan for post-employment benefits other than pension benefits for retirees and the eligible dependents of the Clerk of Courts, Sheriff, Tax Collector, Supervisor of elections, Property Appraiser and the County. The Board of County Commissioners can amend the benefits and retiree contributions associated with the plan. The life insurance benefit is provided at no charge to retirees. The life insurance benefit is $5,000 for all retirees. In accordance with Florida Statutes 112.0801, the health insurance subsidy is provided to employees who retire and immediately begin receiving benefits from the Florida Retirement System (“FRS”) after at least 6 years of creditable service. The County will maintain current subsidy levels for all current retirees. However, as of January 1, 2009, future retirees will be expected to share in the increasing costs of the program through increase rate adjustments. Retirees with more than 20 years of creditable service will receive an additional monthly subsidy. The amount of the monthly subsidy is based on the number of years of service with the County or Constitutional Officer, and is equal to one dollar and fifty cents for each year of total service until they are eligible for Medicare. On January 8, 2008, the County adopted Ordinance 2008-1 which established the permitted investments for SJCPEWB, which is a qualifying trust, and began funding its annual required contribution obligation through a direct contribution from unrestricted cash balances. A separate stand-alone financial statement for the Trust is not prepared.


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At October 1, 2015, the date of the latest full actuarial valuation,

Active employees (fully eligible) 546 Active employees (not fully eligible) 1,246

Retirees receiving benefits 257 Total OPEB participants 2,049

Funding Policy – The contribution requirements of plan members and the County are established and may be amended by the St. Johns County Board of County Commissioners. The employer’s contribution to the OPEB Trust Fund to prefund benefits is accounted for in the County’s OPEB Trust Fund. For the year ended September 30, 2016, the County contributed a total of $4,257,027 towards the OPEB Plan, which includes a contribution of $2,235,506 to the Trust Fund from government programs. In subsequent years, the County will base future Trust Fund contributions on the actuarially determined annual required contribution (ARC), less an adjustment for the current asset balance of the County’s Net OPEB Obligation until the balance has been eliminated. However, no future Trust Fund contributions are legally or contractually required. Retiree plan members receiving benefits contributed $1,390,135 through their required monthly premiums towards the OPEB Trust.

Annual OPEB Cost and Net OPEB Obligation – The annual cost (expense) of the County’s OPEB Plan is calculated based on the ARC, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liability over a period not to exceed 30 years. The following table shows the components of the County’s annual OPEB cost for this fiscal year, the amount contributed by the employer, and the changes in the net OPEB asset.

Annual Required Contribution 3,001,940$

Interest on Net OPEB Obligation (388,465)

Adjustment to Annual Required Contribution 503,451

Total Annul OPEB Cost 3,116,926$

Contributions Made:

Contributions of assets to the OPEB Trust Fund (4,257,027)

Change in net OPEB asset (1,140,101)

Net OPEB asset ‐ beginning of year (5,549,497)

Net OPEB asset ‐ end of year (6,689,598)$

DEVELOPMENT OF EMPLOYER CONTRIBUTION FOR FISCAL YEAR

ENDED SEPTEMBER 30, 2016


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Trend Information

Net Ending OPEBAnnual OPEB Actual Employer Percentage Obligation/

Year Ended Cost Contribution Contribution (Asset)

9/30/2014 2,764,698$ 2,731,940$ 98.82% (5,709,332)$ 9/30/2015 2,902,751$ 2,742,916$ 94.49% (5,549,497)$ 9/30/2016 3,116,926$ 4,257,027$ 136.58% (6,689,598)$

Funding Status and Funding Progress – The OPEB payments made for the 2016 fiscal year were 136.58% of the annual OPEB cost. As of the actuarial valuation report dated May 23, 2017 for the actuarial valuation date of September 30, 2015, the actuarial value of assets was $25,359,609; the actuarial accrued liability for benefits was $43,095,844; the unfunded actuarial accrued liability (UAAL) was $17,736,235; the UAAL as a percentage of covered payrolls, which was $86,718,542 as of the valuation date, was 20.45%; and the funded ratio was 58.84%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far in the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding 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.

The required schedule of funding progress immediately following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time, relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions – Projects of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan 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 plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the employer and plan members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that perspective, 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.


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Several acceptable actuarial cost methods were investigated. The County’s goal was to achieve the lowest measure of OPEB Cost and the potential liability.

The actuarial methods are: Actuarial cost method Entry Age Amortization method Level percent of payroll, closed Amortization period 13 years Asset valuation Fair value

The actuarial assumptions are: Investment rate of return 7% Projected annual payroll growth 4.0% (incl. inflation) Inflation rate 2.5% Mortality RP-2000 Combined Healthy Participant Mortality Tables Healthcare cost trend rate Initial trend 6.0%; Ultimate trend 5.38%



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9. FUND BALANCE CLASSIFICATIONS Balances of reported fund balances at September 30, 2016 are as follows:

St. Johns CountyCounty Community Other

General Transportation Fire Redevelopment Governmental Fund Trust Fund District Agency Funds Total

Nonspendable:Notes receivable 450,259$ 303,648$ 753,907$ Advances 2,207,694 2,207,694 Inventory 279,638$ 45,610 325,248

2,657,953 279,638 -$ -$ 349,258 3,286,849 Restricted for: Community Redevelopment Agency debt service 4,078 4,078

Capital outlay for public facilities 2,490,646 2,490,646 Fire Rescue, Sheriff's operations and facilities, County

permitting operations, & public safety grants 6,903,229 16,439,474 23,342,703 Roadway landscaping and maintenance 3,063,209 3,063,209 Roadway capital improvements & operations 11,754,812 11,754,812 State Housing Initiatives Program 1,173,726 1,173,726 Foster Care Program, Alcohol & Drug Abuse 84,010 84,010 Project Buckle Up 12,485 12,485 Tourist development & park improvements 6,037,401 6,037,401 Utility Regulatory Operations 277,849 277,849 Court facilities, technology, record's modernization

& Teen Court 5,694,630 5,694,630 Capital improvement projects 15,076,206 15,076,206 Debt service 1,254,429 1,254,429

290,334 - 6,903,229 4,078 63,068,543 70,266,184 Committed for:

Inmate benefits 281,671 281,671 Assigned for: Community Redevelopment Agency operating expenditures 5,503 5,503

Capital outlay for public facilities 13,734 13,734 Fire Rescue, Sheriff's operations and facilities, &

Inmate benefits 3,938,380 1,600,435 5,538,815 Roadway landscaping and maintenance 60,559 60,559 Roadway capital improvements & operations 33,205,232 1,644,102 34,849,334 State Housing Initiatives Program & CRA Programs 8,555 8,555 Alcohol & Drug Abuse Program 10,242 10,242 Tourist development, cultural entertainment & parks 1,473,696 1,473,696 Court technology 125,161 125,161 Capital improvement projects 115,519 115,519 Debt service 2,193,972 2,193,972

- 33,205,232 3,938,380 5,503 7,245,975 44,395,090 Unassigned: 48,162,987 (1,702,192) 46,460,795

Total: 51,111,274$ 33,484,870$ 10,841,609$ 9,581$ 69,243,255$ 164,690,589$


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10. RISK MANAGEMENT

A. Public Entity Risk Pool

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 disasters. The County belongs to the Florida Association of Counties Trust (the “FACT”), a public entity risk pool currently operating as a common risk management and insurance program for twenty-eight member counties. The County pays an annual premium to FACT for its general liability coverage. The premiums are designed to fund the liability risks assumed by the Trust and are based on certain actual exposures of each member. There were no claims paid which exceeded coverage during the last three fiscal years.

B. Self-Insurance

The Board carries worker’s compensation coverage with Bituminous Insurance. The Board believes it is more economical to manage its risks internally and set aside assets for claim settlement within the Worker’s Compensation Internal Service Fund. The Worker’s Compensation Internal Service Fund paid the monthly premiums. Additionally, St. Johns County provides health, life and accidental death and dismemberment insurance for its employees via a Self-Insurance Internal Service Fund to account for and finance its self-insured risks of loss. Under this program, the Health Insurance Internal Service Fund provides coverage up to a maximum of $250,000 per employee per incident. The Board purchases commercial insurance for claims in excess of coverage provided by the Fund. The County elected to discontinue coverage of the maximum Aggregate Stop Loss re-insurance liability because re-insured claims have historically never reached the maximum threshold and settled amounts have not exceeded collected premiums. During this year, there were claims that exceeded the $250,000 stop loss deductible for a total of $995,756 in anticipated reimbursements. The September 30, 2016 estimated claims liability of $2.6 million is based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior of the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and that the amount of loss can be reasonably estimated, including an estimate for liabilities incurred but not reported. Claims liabilities are an estimate based on the monthly average of lag claims paid for the most recent three quarters that were made between 30 – 120 days after the initiation of the claim plus an annual average of all claims paid that exceeded 120 days. The claims liability at the fiscal year end is shown at current dollar value. Additionally, section 112.08, Florida Statute, requires the County Health Plan to hold a cash surplus of 60-days in anticipated claims. The required level, as determined by the County’s actuary was $1.4 million.


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10. RISK MANAGEMENT (continued)

All County departments and the other elected constitutional officers of the County participate in both programs. The cost of providing claim’s administrative services and payments is allocated by charging a “premium” to each department and constitutional officer based on a fixed premium or a percentage of each organization’s estimated current-year payroll. The premium charged considers recent trends in actual claims experience of the County as a whole and makes provision for catastrophe losses. Changes in the Health Insurance Fund’s claims liability amount were as follows:

Current YearFiscal Beginning Claims/Changes Claim EndingYear Balance in Estimates Payments Balance

2013/2014 2,087,041$ 21,474,341$ 21,318,468$ 2,242,914$

2014/2015 2,242,914$ 24,176,899$ 24,075,367$ 2,344,446$

2015/2016 2,344,446$ 27,402,842$ 27,144,778$ 2,602,510$ C. Conventionally Insured Claims and Losses

The County retains conventional insurance coverage on all other types of insurable risks. Settled claims resulting from these risks have not exceeded conventional insurance coverage in any of the past three fiscal years.

11. DEFICIT BALANCE - INDIVIDUAL FUNDS

At September 30, 2016 the following funds had deficit equity balances in the amounts shown:

Nonmajor Government Funds: Private Roads MSBU 51,722$ Treasure Beach MSBU 2,194,780

Deficits will be corrected by adjusting future revenues through increased charges for services; adding new revenues; or increasing operational transfers.

12. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE DISCLOSURES Accrual for Landfill Closure and Post-Closure Costs - State and Federal laws and regulations require the County to place a final cover on its Tillman ridge Phase II landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Although closure and post-closure care costs will be paid only near or after the date that the landfill stops accepting waste, the County reports a portion of these closure and post-closure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The $4,896,981 reported as landfill closure and post-closure care liability at September 30, 2016, represents the cumulative amount reported as post-closure care costs for both phases of the Tillman Ridge Landfill.


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12. OTHER REQUIRED INDIVIDUAL FUND AND COMPLIANCE DISCLOSURES (continued) The annual estimated cost is approximately $326,465 and there remains 15 years of estimated post-closure care. The amount is estimated based on what it would cost to perform all post-closure care in 2016. The actual cost may be higher 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 provide proof of financial responsibility for closure and post-closure care. The County’s method, which is established by State law, relies on various financial tests to provide this proof. The County is in compliance with these requirements at September 30, 2016. 13. RELATED PARTY DISCLOSURES In Fiscal Year 2010, the County entered into a Revenue Sharing Interlocal Agreement, under Section 163, Florida Statutes, with the City of St. Augustine Beach (“City”) and the Florida Department of Environmental Protection (“FDEP”) Clean Water State Revolving Loan Program (“Program”) to connect approximately 620 residential units in seven neighborhoods to the St. Johns County Utility System. Through the Program, the City obtained funding in the amount of $6,937,571. Upon completion of the project, $4,507,926 of the outstanding loan balance was forgiven. The remaining one third will be amortized and payable over 20 years.

The City contracted with the county to extend their current utility system into these neighborhoods. As construction costs were incurred, the County invoiced the City. The City in turn paid the County from the loan proceeds. The new lines will be operated and maintained by St. Johns County. The City has been deemed the owner of the new utility lines until such time as the debt instrument that was used to finance the project is retired, upon which ownership shall vest solely with the County.

The County shares system revenues generated from the new connections with the City in the amount equal to $83,683 paid semiannually for debt service on the City’s loan which were not forgiven. 14. NET POSITION RESTRICTED BY ENABLING LEGISLATION The government-wide statement of net position reports $128,314,542 of restricted net position, of which, $70,387,715 is restricted by enabling legislation. 15. COMMITMENTS AND CONTINGENCIES

A. Commitments

At September 30, 2016 the County had approximately $33.82 million in outstanding commitments relating to construction contracts.


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15. COMMITMENTS AND CONTINGENCIES (continued)

B. Contingencies Pending Litigation

The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. In the opinion of county management, based on the advice of legal counsel, the ultimate disposition of these lawsuits and claims will not have a material adverse effect on the financial position of the County.

16. SUBSEQUENT EVENTS

After the close of the fiscal year, the County completed the process of compiling the necessary documents to refund the outstanding debt associated with the Ponte Vedra Utility System; to issue additional debt necessary to complete approximately $20 million in system improvements to the Ponte Vedra system; and upon completion of the transaction to merge the system with the St. Johns County Utility System.

17. FUTURE ACCOUNTING PRONOUNCEMENTS The Governmental Accounting Standards Board has issued statements that will become effective in fiscal year 2017. The statements address:

A. Certain pension issues;

B. Other post-employment benefit plans;

C. Tax abatement disclosures; and

D. Blending certain component units.

The County is currently evaluating the effects that these statements will have on its 2017 financial statements.

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REQUIRED SUPPLEMENTARY INFORMATION

ST. JOHNS COUNTY, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016

Original Final Variance withBudget Budget Actual Final Budget

REVENUES: Taxes 105,731,288$ 105,731,288$ 102,134,413$ (3,596,875)$ Licenses and permits 281,000 281,000 293,409 12,409 Intergovernmental 21,801,152 22,627,518 22,532,559 (94,959) Charges for services 14,538,051 15,644,347 19,210,643 3,566,296 Fines and forfeitures 3,199,690 2,961,975 2,980,976 19,001 Contributions 145,000 357,861 380,411 22,550 Investment income 719,925 722,425 671,300 (51,125) Miscellaneous revenue 660,711 1,447,143 1,532,880 85,737 FS 129 statutory reduction (6,678,690) (6,678,690) 6,678,690

TOTAL REVENUES 140,398,127 143,094,867 149,736,591 6,641,724

EXPENDITURES: Current: General government 34,948,654 35,293,716 32,593,818 2,699,898 Public safety 78,601,502 84,511,402 83,066,831 1,444,571 Physical environment 892,525 892,525 666,198 226,327 Economic environment 2,225,821 3,089,371 2,905,525 183,846 Human services 7,084,348 7,172,833 6,628,116 544,717 Culture and recreation 16,075,435 16,267,222 15,367,996 899,226 Court Related 9,165,970 9,101,070 8,704,185 396,885 Debt service: Principal retirement 1,384,842 1,397,783 1,417,278 (19,495) Interest and fiscal charges 41,532 36,537 35,481 1,056

TOTAL EXPENDITURES 150,420,629 157,762,459 151,385,428 6,377,031

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (10,022,502) (14,667,592) (1,648,837) 13,018,755


Transfers in 3,143,994 3,543,085 3,814,976 271,891 Transfers out (4,796,714) (5,081,760) (5,031,212) 50,548 Long-term debt issued 1,690,000 1,692,530 2,530 Capital lease 1,361,807 1,361,807 - Sale of capital assets 70,000 70,000 177,212 107,212

TOTAL OTHER FINANCING SOURCES (USES) (1,582,720) 1,583,132 2,015,313 432,181

NET CHANGE IN FUND BALANCE (11,605,222) (13,084,460) 366,476 13,450,936

FUND BALANCES, BEGINNING OF YEAR 44,396,132 44,396,132 50,744,798 6,348,666

FUND BALANCES, END OF YEAR 32,790,910$ 31,311,672$ 51,111,274$ 19,799,602$

General Fund

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ST. JOHNS COUNTY, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MAJOR SPECIAL REVENUE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016


REVENUES: Taxes 19,199,955$ 19,199,955$ 19,012,028$ (187,927)$ Licenses and permits 625,000 625,000 775,980 150,980 Intergovernmental 7,054,909 7,054,909 5,731,201 (1,323,708) Charges for services 8,259,434 8,259,434 6,228,280 (2,031,154) Contributions 35,000 25,000 (10,000) Investment income 207,210 207,210 420,819 213,609 Miscellaneous revenue 68,198 68,198 FS 129 statutory reduction (1,351,402) (1,351,402) 1,351,402

TOTAL REVENUES 33,995,106 34,030,106 32,261,506 (1,768,600)

EXPENDITURES: Current: Transportation 52,970,180 57,644,635 31,246,859 26,397,776

TOTAL EXPENDITURES 52,970,180 57,644,635 31,246,859 26,397,776

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (18,975,074) (23,614,529) 1,014,647 24,629,176


Transfers out (96,471) (96,471) (96,471) - Sale of capital assets 199 199

TOTAL OTHER FINANCING SOURCES (USES) (96,471) (96,471) (96,272) 199

NET CHANGE IN FUND BALANCE (19,071,545) (23,711,000) 918,375 24,629,375

FUND BALANCES, BEGINNING OF YEAR 32,618,462 32,618,462 32,566,495 (51,967)


Transportation Trust

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ST. JOHNS COUNTY, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MAJOR SPECIAL REVENUE FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2016


REVENUES: Taxes 27,794,856$ 27,794,856$ 26,811,731$ (983,125)$ Licenses and permits - Intergovernmental 1,380,500 1,380,500 1,039,915 (340,585) Charges for services 342,300 342,300 433,428 91,128 Contributions - Investment income 97,105 97,105 213,818 116,713 Miscellaneous revenue 21,467 21,467 FS 129 statutory reduction (1,411,713) (1,411,713) 1,411,713

TOTAL REVENUES 28,203,048 28,203,048 28,520,359 317,311

EXPENDITURES: Current:

Public Safety 28,620,519 28,620,519 27,939,184 681,335

TOTAL EXPENDITURES 28,620,519 28,620,519 27,939,184 681,335

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (417,471) (417,471) 581,175 998,646


Transfers out (963,054) (963,417) (963,054) 363 Sale of capital assets 65,400 65,400

TOTAL OTHER FINANCING SOURCES (USES) (963,054) (963,417) (897,654) 65,763

NET CHANGE IN FUND BALANCE (1,380,525) (1,380,888) (316,479) 1,064,409

FUND BALANCES, BEGINNING OF YEAR 10,742,164 10,742,164 11,158,088 415,924


Fire District

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ST. JOHNS COUNTY, FLORIDASCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - MAJOR SPECIAL REVENUE FUNDFOR THE YEAR ENDED SEPTEMBER 30,2016


REVENUES: Taxes 621,796$ 621,796$ 619,983$ (1,813)$ Investment income 420 420 913 493 FS 129 statutory reduction (21) (21) 21

TOTAL REVENUES 622,195 622,195 620,896 (1,299)

EXPENDITURES: Current: Economic Environment 60,277 60,277 50,258 10,019

TOTAL EXPENDITURES 60,277 60,277 50,258 10,019

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 561,918 561,918 570,638 8,720


Transfers out (578,483) (578,483) (578,483) -

TOTAL OTHER FINANCING SOURCES (USES) (578,483) (578,483) (578,483) -

NET CHANGE IN FUND BALANCE (16,565) (16,565) (7,845) 8,720

FUND BALANCES, BEGINNING OF YEAR 16,565 16,565 17,426 861

FUND BALANCES, END OF YEAR -$ -$ 9,581$ 9,581$

Community Redevelopment AgencySt Johns County

- 101 -

ST. JOHNS COUNTY, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULES FOR THE YEAR ENDED SEPTEMBER 30, 2016

- 102 -

BUDGETS AND BUDGETARY ACCOUNTING

The County uses the following procedures in establishing the budgetary data.

1. The County adopts its budget in accordance with Chapters 129 and 200, Florida Statutes, and County Policy.

a. The County and County Administrator follow an internal hearing process to set

the proposed tentative budget and millage. b. Public hearings are then held to adopt a tentative budget and millage in

accordance with Chapters 129 and 200, Florida Statutes.

2. The County presents a budgetary comparison schedule as a part of the Required Supplementary Section for the General Fund and each major special revenue fund.

3. All other governmental funds with legally adopted annual budgets are included in the

Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual in the Supplementary Information Section of this report.

4. The County, with the exception of certain Special Revenue Funds, adopts budgets for all

Governmental Funds. Appropriations for these limited Special Revenue Funds are approved, as necessary, during the fiscal year.

5. Level of Control - Expenditures may not exceed appropriations and are controlled in the

following manner:

a. The budget is controlled according to Chapter 129, Florida Statutes, at the total fund level.

b. The County has adopted more stringent policies that control expenditures on the

department level within funds.

c. The County has adopted a budget amendment policy that allows the County Administrator to make budget transfers within departments within a fund; therefore the legal level of control is at the department level. However, for the majority of the County’s funds there is only one department within the fund. As a result, when the County reports by fund it is reporting at the legal level of control for those funds. For the funds that have more than one department, supporting schedules are presented in the supplementary information section for a comparison of budget to actual expenditures at the department level.

Those funds are as follows:

Major Funds: General Fund County Transportation Trust

Non-major Governmental Funds: Beach

Tourist Development Tax

ST. JOHNS COUNTY, FLORIDA NOTES TO BUDGETARY COMPARISON SCHEDULES FOR THE YEAR ENDED SEPTEMBER 30, 2016

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BUDGETS AND BUDGETARY ACCOUNTING (concluded) d. The Board of County Commissioners must authorize budget transfers between

departments in a fund.

6. All budgets are adopted in accordance with generally accepted accounting principles.

7. Appropriations lapse at the close of each fiscal year.

8. Formal budgetary integration is used as a management control device for all governmental funds of the Board.

9. Supplemental Appropriations - In certain instances, the County may advertise and hold

public hearings in order to supplement the appropriations in a fund due to unexpected high levels of receipts, unanticipated grants or under estimation of carry forward balances. In fiscal year 2016 supplemental appropriations, greater than $100,000, were approved by resolution in accordance with county policy as follows:

Additional Unanticipated OtherSupplemental Grant UnanticipatedAppropriations Receipts Receipts

Major Funds:General Fund 1,203,807$ 346,828$ 1,697,000$ County Transportation Trust Fund 5,200,000 Fire District 213,378

Nonmajor Governmental Funds:Community Based Care 129,623 Communication Surcharge 268,117 County Cultural Center 1,851,900 Impact Fees Roads 1,430,000 E911 Communications 219,480 Pooled Commercial Paper Loan Program 439,737 Beach Re-nourishment Project 121,334

Proprietary Major Funds:St. Johns County Utilities 130,000

Proprietary Nonmajor Funds:Group Health Insurance 2,674,544


ST. JOHNS COUNTY, FLORIDASCHEDULES OF PROPORTIONATE SHARE OF NET PENSION LIABILITY

LAST 10 FISCAL YEARS (1)

2015 2016

Employer's proportion of the net pension liability (asset) 0.4456% 0.4939%

Employer's proportionate share of the net pension liability (asset) 57,557,730$ 124,721,262$

Employer's covered-employee payroll (2) 99,794,551$ 105,920,653$

Employer's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 57.6762% 117.7497%

Plan fiduciary net position as a percentage of the total pension liability 92.00% 84.88%

2015 2016

Employer's proportion of the net pension liability (asset) 0.3289% 0.3428%

Employer's proportionate share of the net pension liability (asset) 33,541,027$ 39,950,792$


Employer's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll 33.6101% 37.7177%

Plan fiduciary net position as a percentage of the total pension liability 0.50% 0.97%

Notes to schedules:

Health Insurance Subsidy Program

(1) The amounts presented for each fiscal year were determined as of the measurement date, which was June 30th of the current fiscal year.

(2) Covered-employee payroll includes defined benefit plan actives, investment plan members, and members in DROP.

GASB Statement No. 68 was implemented in 2015. Until a full 10-year trend is compiled, information for those years for which it is available will be presented.

Florida Retirement System

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ST. JOHNS COUNTY, FLORIDASCHEDULES OF EMPLOYER CONTRIBUTIONSLAST 10 FISCAL YEARS

2015 2016

Contractually required contribution 11,141,167$ 12,778,729$

Contribution in relation to the contractually required contribution 11,141,167 12,778,729

Contribution deficiency (excess) -$ -$


Contributions as a percentage of covered-employee payroll 11.00% 11.67%

2015 2016

Contractually required contribution 1,376,372$ 1,816,671$

Contribution in relation to the contractually required contribution 1,376,372 1,816,671

Contribution deficiency (excess) -$ -$


Contributions as a percentage of covered-employee payroll 1.36% 1.66%

Notes to schedules:

Florida Retirement System

(1) Covered-employee payroll includes defined benefit plan actives, investment plan members, and members in DROP.

GASB Statement No. 68 was implemented in 2015. Until a full 10-year trend is compiled, information for those years for which it is available will be presented.

Health Insurance Subsidy Program

- 105 -

ST. JOHNS COUNTY, FLORIDASCHEDULES OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS - OTHER POST EMPLOYMENT BENEFITSFOR THE YEAR ENDED SEPTEMBER 30, 2016

Actuarial UAAL as %Actuarial Actuarial Accrued Unfunded Total Annual of CoveredValuation Value of Liability (AAL) AAL (UAAL) Funded Ratio Covered Payroll

Date Assets (A) Entry Age (B) (B-A) (A/B) Payroll (C) (B-A)/C

10/1/2011 14,938,132$ 44,098,194$ 29,160,062$ 33.87% 81,122,307$ 35.95%10/1/2013 21,473,122$ 38,854,386$ 17,381,264$ 55.27% 83,170,894$ 20.90%10/1/2015 25,359,609$ 43,095,844$ 17,736,235$ 58.84% 86,718,542$ 20.45%

End of Plan RequiredYear to which Employer Percentage of Negative Net

Valuation Contribution Employer Annual OPEB Cost OPEB Obligation/Applies Amount (A) Contributions (B) Contributed (B/A) (Asset)

9/30/2014 2,764,698$ 2,731,940$ 98.82% (5,709,332)$ 9/30/2015 2,902,751$ 2,742,916$ 94.49% (5,549,497)$ 9/30/2016 3,116,926$ 4,257,027$ 136.58% (6,689,598)$

Notes to schedules:See Note 8C for detailed information on the St. Johns County OPEB Plan.

Schedule of Funding Progress

Schedule of Employer Contribution

- 106 -

- 107 -

SUPPLEMENTARY INFORMATION

ST. JOHNS COUNTY, FLORIDACOMBINING BALANCE SHEET- BOARD AND OFFICER GENERAL FUNDS September 30, 2016

Board ofCounty Clerk of

Commissioners Circuit Court SheriffSub-fund Sub-fund Sub-fund

ASSETS

Equity in pooled cash and cash equivalents 5,622,502$ 1,564,558$ 1,398,868$ Investments 40,809,350 Accounts receivable 1,074,563 15,408 Interest receivable 105,475 Note receivable 450,259 Advance from other funds 2,207,694

Due from other funds 370,361 257,743 Due from other county agencies 4,917,231 2,667 331,264 Net due from other funds 5,287,592 2,667 589,007

Due from other governments 1,895,413 170 63,690 Other assets 241,426

TOTAL ASSETS 57,694,274$ 1,567,395$ 2,066,973$

LIABILITIES

Accounts payable and accrued liabilities 3,178,235$ 211,125$ 1,957,821$ Customer deposits 676,991

Due to other funds 111,876 Due to other county agencies 113,739 945,557 109,152 Net due to other funds 225,615 945,557 109,152

Due to other governments 2,333,400 410,713 Unearned revenue 181,244

TOTAL LIABILITIES 6,595,485 1,567,395 2,066,973

FUND BALANCES

Nonspendable 2,657,953 Restricted 277,849 Unassigned 48,162,987

TOTAL FUND BALANCES 51,098,789 - -

TOTAL LIABILITIES AND FUND BALANCES 57,694,274$ 1,567,395$ 2,066,973$ (continued)

- 108 -


ASSETS

Equity in pooled cash and cash equivalentsInvestmentsAccounts receivableInterest receivableNote receivableAdvance from other funds

Due from other fundsDue from other county agencies Net due from other funds

Due from other governmentsOther assets

TOTAL ASSETS

LIABILITIES

Accounts payable and accrued liabilitiesCustomer deposits

Due to other fundsDue to other county agencies Net due to other funds

Due to other governmentsUnearned revenue

TOTAL LIABILITIES

FUND BALANCES

NonspendableRestrictedUnassigned

TOTAL FUND BALANCES

TOTAL LIABILITIES AND FUND BALANCES

SupervisorTax Property of

Collector Appraiser ElectionsSub-fund Sub-fund Sub-fund

3,985,454$ 184,976$

129,024 57,057$

129,024 - 57,057

43

4,114,521$ 184,976$ 57,057$

19,680$ 53,280$ 54,885$

3,678,635 131,696 2,172 3,678,635 131,696 2,172

403,721

4,102,036 184,976 57,057

12,485

12,485 - -

4,114,521$ 184,976$ 57,057$ (continued)

- 109 -


ASSETS

Equity in pooled cash and cash equivalentsInvestmentsAccounts receivableInterest receivableNote receivableAdvance from other funds

Due from other fundsDue from other county agencies Net due from other funds

Due from other governmentsOther assets

TOTAL ASSETS

LIABILITIES

Accounts payable and accrued liabilitiesCustomer deposits

Due to other fundsDue to other county agencies Net due to other funds

Due to other governmentsUnearned revenue

TOTAL LIABILITIES

FUND BALANCES

NonspendableRestrictedUnassigned

TOTAL FUND BALANCES

TOTAL LIABILITIES AND FUND BALANCES

InterfundEliminations &

Subtotals Consolidations Total

12,756,358$ 280,198$ 13,036,556$ 40,809,350 40,809,350 1,089,971 1,089,971

105,475 105,475 450,259 450,259

2,207,694 2,207,694

757,128 757,128 5,308,219 (5,195,084) 113,135 6,065,347 (5,195,084) 870,263

1,959,316 1,959,316 241,426 241,426

65,685,196$ (4,914,886)$ 60,770,310$

5,475,026$ 5,475,026$ 676,991 676,991

111,876 111,876 4,980,951 (4,914,886)$ 66,065 5,092,827 (4,914,886) 177,941

3,147,834 3,147,834 181,244 181,244

14,573,922 (4,914,886) 9,659,036

2,657,953 2,657,953 290,334 290,334

48,162,987 48,162,987

51,111,274 - 51,111,274

65,685,196$ (4,914,886)$ 60,770,310$ (concluded)

- 110 -

ST. JOHNS COUNTY, FLORIDACOMBINING SHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL- BOARD AND OFFICER GENERAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016

Board of County Commissioners Clerk of the Circuit CourtSub-fund Sub-fund

Original Final Original FinalBudget Budget Actual Budget Budget Actual

REVENUES: Taxes 105,731,288$ 105,731,288$ 102,134,413$ Licenses and permits 281,000 281,000 293,409 Intergovernmental 21,776,202 22,254,685 22,284,074 24,950$ 213,730$ 89,385$ Charges for services 7,948,889 7,953,313 10,630,317 2,243,830 2,175,230 2,574,019 Fines and forfeitures 623,990 623,990 612,631 2,575,700 2,337,985 2,368,345 Contributions 145,000 357,861 380,411 Investment income 689,954 689,954 639,182 2,000 4,500 7,313 Miscellaneous revenue 656,911 658,936 739,305 3,800 3,100 5,564 FS 129 statutory reduction (6,678,690) (6,678,690) -

TOTAL REVENUES 131,174,544 131,872,337 137,713,742 4,850,280 4,734,545 5,044,626

EXPENDITURES: Current: General government 23,829,295 24,147,443 22,175,216 3,505,530 3,505,530 3,000,138 Public safety 17,431,873 19,475,645 18,161,343 Physical environment 892,525 892,525 666,198 Economic environment 2,225,821 3,089,371 2,905,525 Human services 7,084,348 7,172,833 6,628,116 Culture and recreation 16,075,435 16,267,222 15,367,996 Court related 3,672,738 3,722,067 3,357,694 3,866,250 3,750,515 3,662,352 Debt service: Principal retirement Interest and fiscal charges

TOTAL EXPENDITURES 71,212,035 74,767,106 69,262,088 7,371,780 7,256,045 6,662,490

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 59,962,509 57,105,231 68,451,654 (2,521,500) (2,521,500) (1,617,864)

OTHER FINANCING SOURCES (USES): Transfers in 1,766,413 1,766,413 1,773,266 470,000 470,000 470,000 Transfers in - from Officers 4,150,000 4,150,000 4,811,468 Transfers in - from Board - - - 2,051,500 2,051,500 2,051,500

Net transfers in 5,916,413 5,916,413 6,584,734 2,521,500 2,521,500 2,521,500

Transfers out (4,796,714) (5,081,760) (5,012,025) Transfers out - to Officers (71,531,292) (71,558,206) (71,529,260) Transfers out - to Board - - - (903,636)

Net transfers out (76,328,006) (76,639,966) (76,541,285) - - (903,636)

Long-term debt issued - 1,690,000 1,692,530 Capital lease Sale of capital assets 70,000 70,000 177,212

TOTAL OTHER FINANCING SOURCES (USES) (70,341,593) (68,963,553) (68,086,809) 2,521,500 2,521,500 1,617,864

NET CHANGE IN FUND BALANCE (10,379,084) (11,858,322) 364,845 - - - FUND BALANCES, BEGINNING OF YEAR 44,396,132 44,396,132 50,733,944 - FUND BALANCES, END OF YEAR 34,017,048$ 32,537,810$ 51,098,789$ -$ -$ -$

(continued)

- 111 -


REVENUES: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Contributions Investment income Miscellaneous revenue FS 129 statutory reduction

TOTAL REVENUES

EXPENDITURES: Current: General government Public safety Physical environment Economic environment Human services Culture and recreation Court related Debt service: Principal retirement Interest and fiscal charges

TOTAL EXPENDITURES

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES): Transfers in Transfers in - from Officers Transfers in - from Board

Net transfers in

Transfers out Transfers out - to Officers Transfers out - to Board

Net transfers out

Long-term debt issued Capital lease Sale of capital assets

TOTAL OTHER FINANCING SOURCES (USES)

NET CHANGE IN FUND BALANCE FUND BALANCES, BEGINNING OF YEAR FUND BALANCES, END OF YEAR

Sheriff Tax CollectorSub-fund Sub-fund


132,189$ 132,186$ 1,170,472 1,170,471 8,650,646$ 8,650,646$ 9,129,927

27,971 27,971 24,337 785,107 784,931 3,080

-$ 2,087,768 2,087,588 8,678,617 8,678,617 9,157,344

5,754,755 5,754,755 5,507,951 61,169,629 65,035,757 64,905,488

1,626,982 1,628,488 1,684,139

1,384,842 1,397,783 1,417,278 41,532 36,537 35,481

64,222,985 68,098,565 68,042,386 5,754,755 5,754,755 5,507,951

(64,222,985) (66,010,797) (65,954,798) 2,923,862 2,923,862 3,649,393

64,222,985 64,648,990 64,649,168 64,222,985 64,648,990 64,649,168 - - -

(19,189)

(36,988) (2,923,862) (2,923,862) (3,647,762) - - (56,177) (2,923,862) (2,923,862) (3,647,762)

1,361,807 1,361,807

64,222,985 66,010,797 65,954,798 (2,923,862) (2,923,862) (3,647,762)

- - - - - 1,631

- - - - - 10,854

-$ -$ -$ -$ -$ 12,485$

(continued)

- 112 -



TOTAL REVENUES


TOTAL EXPENDITURES



Net transfers in


Net transfers out




Property Appraiser Supervisor of ElectionsSub-fund Sub-fund


26,914$ 26,914$ 791,425$ 791,425$ 801,144$ 209,000$ 209,000 8,060

468

791,425 791,425 801,612 209,000 235,914 34,974

5,176,019 5,176,019 5,054,637 1,988,794 2,015,708 1,959,171

5,176,019 5,176,019 5,054,637 1,988,794 2,015,708 1,959,171

(4,384,594) (4,384,594) (4,253,025) (1,779,794) (1,779,794) (1,924,197)

4,384,594 4,384,594 4,384,594 1,779,794 1,779,794 2,015,708 4,384,594 4,384,594 4,384,594 1,779,794 1,779,794 2,015,708

(131,569) (91,511) - - (131,569) - - (91,511)

4,384,594 4,384,594 4,253,025 1,779,794 1,779,794 1,924,197

- - - - - -

- - - - - -

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

(continued)

- 113 -



TOTAL REVENUES


TOTAL EXPENDITURES



Net transfers in


Net transfers out




Subtotals Eliminations and Consolidations


105,731,288$ 105,731,288$ 102,134,413$ 281,000 281,000 293,409

21,801,152 22,627,518 22,532,559 19,843,790 20,950,086 24,313,938 (5,305,739)$ (5,305,739)$ (5,103,295)$

3,199,690 2,961,975 2,980,976 145,000 357,861 380,411 719,925 722,425 671,300 660,711 1,447,143 1,532,880

(6,678,690) (6,678,690) -

145,703,866 148,400,606 154,839,886 (5,305,739) (5,305,739) (5,103,295)

40,254,393 40,599,455 37,697,113 (5,305,739) (5,305,739) (5,103,295) 78,601,502 84,511,402 83,066,831

892,525 892,525 666,198 2,225,821 3,089,371 2,905,525 7,084,348 7,172,833 6,628,116

16,075,435 16,267,222 15,367,996 9,165,970 9,101,070 8,704,185

1,384,842 1,397,783 1,417,278 41,532 36,537 35,481

155,726,368 163,068,198 156,488,723 (5,305,739) (5,305,739) (5,103,295)

(10,022,502) (14,667,592) (1,648,837) - - -

2,236,413 2,236,413 2,243,266 4,150,000 4,150,000 4,811,468 (4,150,000) (4,150,000) (4,811,468)

72,438,873 72,864,878 73,100,970 (71,531,292) (71,558,206) (71,529,260) 78,825,286 79,251,291 80,155,704 (75,681,292) (75,708,206) (76,340,728)

(4,796,714) (5,081,760) (5,031,214) (71,531,292) (71,558,206) (71,529,260) 71,531,292 71,558,206 71,529,260

(2,923,862) (2,923,862) (4,811,466) 2,923,862 2,923,862 4,811,468 (79,251,868) (79,563,828) (81,371,940) 74,455,154 74,482,068 76,340,728

- 1,690,000 1,692,530 - 1,361,807 1,361,807

70,000 70,000 177,212

(356,582) 2,809,270 2,015,313 (1,226,138) (1,226,138) -

(10,379,084) (11,858,322) 366,476 (1,226,138) (1,226,138) -

44,396,132 44,396,132 50,744,798

34,017,048$ 32,537,810$ 51,111,274$ (1,226,138)$ (1,226,138)$ -$

(continued)

Interfund

- 114 -



TOTAL REVENUES


TOTAL EXPENDITURES



Net transfers in


Net transfers out




Totals

Original FinalBudget Budget Actual

105,731,288$ 105,731,288$ 102,134,413$ 281,000 281,000 293,409

21,801,152 22,627,518 22,532,559 14,538,051 15,644,347 19,210,643

3,199,690 2,961,975 2,980,976 145,000 357,861 380,411 719,925 722,425 671,300 660,711 1,447,143 1,532,880

(6,678,690) (6,678,690) -

140,398,127 143,094,867 149,736,591

34,948,654 35,293,716 32,593,818 78,601,502 84,511,402 83,066,831

892,525 892,525 666,198 2,225,821 3,089,371 2,905,525 7,084,348 7,172,833 6,628,116

16,075,435 16,267,222 15,367,996 9,165,970 9,101,070 8,704,185

1,384,842 1,397,783 1,417,278 41,532 36,537 35,481

150,420,629 157,762,459 151,385,428

(10,022,502) (14,667,592) (1,648,837)

2,236,413 2,236,413 2,243,266 - - -

907,581 1,306,672 1,571,710 3,143,994 3,543,085 3,814,976

(4,796,714) (5,081,760) (5,031,214) - - - - - 2

(4,796,714) (5,081,760) (5,031,212)

- 1,690,000 1,692,530 - 1,361,807 1,361,807

70,000 70,000 177,212

(1,582,720) 1,583,132 2,015,313

(11,605,222) (13,084,460) 366,476

44,396,132 44,396,132 50,744,798

32,790,910$ 31,311,672$ 51,111,274$

(concluded)

- 115 -

-116 -

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS DESCRIPTIONS

Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. The County maintains the following Special Revenue Funds: County Health Department – To account for revenues and expenditures of the County Health Department. Building Services – To account for revenues and expenditures of the Building Services Department. Court Facilities – To account for the additional applicable civil and probate surcharges levied by the Circuit and County Court for the purpose of providing capital improvements for the Court system. Law Enforcement Trust – To account for revenues received from the sale of confiscated property and law enforcement expenditures. State Housing Initiatives Program – To account for funding of the Local Housing Assistance Program whose purpose is to increase the availability of affordable housing units in St. Johns County. Community Based Care – To account for State and Federally provided resources expended for foster child care and foster child adoptions. Court Technology Fund – To account for revenues from an additional recording fee imposed to fund existing multi-agency criminal justice information systems. Crime Prevention Fund – To account for revenues imposed in certain felony cases and other offenses to fund a portion of the operating expenses relating to crime prevention programs administered by the county sheriff. Beach – To account for beach access fees collected and disbursed for law enforcement, lifesaving, and ramp and general maintenance of the County’s beaches. Pier – To account for all revenues and expenditures for the County fishing pier at St. Augustine Beach. Tourist Development Tax – To account for collection and disbursement of the local option three cent bed tax. Tree Bank – To account for revenues and expenditures related to replacement and mitigation efforts required by County Ordinance. Communications Surcharge – To account for a surcharge collected on traffic fines to be used for improving the Sheriff’s communications equipment. County Cultural Center – (Formerly Known As the Amphitheater) To improve, operate and maintain the St. Augustine Amphitheater and County Fairgrounds for the development of the arts in St. Johns County.

-117 -

SPECIAL REVENUE FUNDS DESCRIPTIONS (continued) County Golf Course – To account for the administration and operations of the County Golf Course. The cost of providing this service to the general public is recovered primarily through user charges. Alcohol and Drug Abuse – To account for County funds, authorized by F.S. 893.165, for use in local substance abuse programs. Boating Improvement – To account for revenues received from motorboat registration fees to be used for recreational channel marking, public launching facilities and other boating related activities. Impact Fees Building – To account for revenues and expenditures from impact fees for capital improvements relating to public buildings, improvements and equipment directly attributed to growth. These fees are collected countywide. Impact Fees Police – To account for revenues and expenditures from impact fees for capital public safety improvements and equipment directly attributed to growth. These fees are collected countywide. Impact Fees Fire/EMS – To account for revenues and expenditures from impact fees for fire and ambulance service public safety capital improvements and equipment directly attributed to growth. These fees are collected countywide. Impact Fees Roads – To account for revenues and expenditures from impact fees for transportation infrastructure improvements and equipment directly attributed to growth. These fees are collected and expended within four delineated zones within the county. The four zones are accounted for in four separate sub-funds within this one fund. Impact Fees Parks – To account for revenues and expenditures from impact fees for park land acquisition improvements and equipment directly attributed to growth. These fees are collected and expended within four delineated zones within the county. The four zones are accounted for in four separate sub-funds within this one fund. E911 Communications – To account for revenues and expenditures related to the Emergency Response System. Vilano Street Lighting – To account for revenues to provide street lighting to certain unincorporated areas. St. Augustine South Street Lighting - To account for revenues to provide street lighting to certain unincorporated areas. Elkton Drainage – To account for tax revenues to maintain the Parker Canal drainage ditch system in Elkton. Private Roads M.S.B.U. – To account for non-ad valorem revenues to provide private road paving and drainage improvements to assessed areas. Treasure Beach MSBU – To account for the financial activities related to the canal improvements made within the Treasure Beach Municipal Services Benefit Unit.

-118 -

SPECIAL REVENUE FUNDS DESCRIPTIONS (concluded) St. Johns County Transit System – To account for federal financial assistance and the Board’s matching funds for the development and operation of the local bus transportation system for St. Johns County. Northwest Recreation – To account for communication tower rentals that are expended for recreational needs in the Northwest quadrant of the County. Driver’s Education Safety Fund – To account for revenues and expenditures related to driver education and safety programs. Summerhaven MSTU – To account for revenues and expenditures from special assessments collected within the MSTU area to determine the feasibility and design options for a durable solution to beach erosion. Court Modernization – To account for revenues from an additional recording fee imposed to fund existing multi-agency criminal justice information systems within the Clerk of Courts office. Records Modernization – To account for revenues and expenditures for equipment upgrades and modernization of the maintenance of all official records of the County. Teen Court – To account for the operation of Teen Court. Title IVD Fund – To account for Title IVD federal grant revenues and expenditures. Equitable Sharing Proceeds Fund – To account for the revenues and expenditures from the proceeds of federal forfeitures. HIDTA Fund – To account for revenues and expenditures of the High Intensity Drug Trafficking Area Grant. Canteen Fund – To account for the Canteen operated within the County jail. Revenues are provided by sales of products, such as candy, cigarettes, etc., to the inmates. The profits can only be spent for the benefit of the inmates. NET Fund – To account for the operations of a multi-jurisdictional law enforcement task force. Alarm Fund – To account for revenues relating to the permitting of alarm systems within the County and the related expenditures.

DEBT SERVICE FUNDS DESCRIPTIONS Debt Service Funds are used to account for the accumulation of resources for, and the payment of general long-term debt principal and interest. The County maintains the following Debt Service Funds:

-119 -

DEBT SERVICE FUNDS DESCRIPTIONS (continued) Transportation Improvement Revenue Bonds, Series 2006 – The bonds account for the debt service requirements to retire the debt issued during fiscal year 2007. These bonds are payable solely from and secured by a lien upon and a pledge of the County’s Local Option Gas tax. Transportation Improvement Revenue Refunding Bonds, Series 2012 – The bonds account for the debt service requirements to retire the debt issued during fiscal year 2012. These bonds are payable solely from and secured by a lien upon and a pledge of the County’s Local Option Gas tax. Transportation Improvement Revenue Refunding Bonds, Series 2015 – The bonds account for the debt service requirements to retire the debt issued during fiscal year 2015. These bonds are payable solely from and secured by a lien upon and a pledge of the County’s Local Option Gas tax. Sales Tax Revenue Refunding Bonds, Series 2006 – To account for debt service requirements to retire the debt issued during fiscal year 2007. These bonds are payable solely from and secured by a lien upon and pledge of sales tax revenue allocated to the County from the State’s Local Government Half-Cent Sales Tax Clearing Trust Fund. Sales Tax Revenue Refunding Bonds, Series 2009 – To account for debt service requirements to retire the debt issued during fiscal year 2009. These bonds are payable solely from and secured by a lien upon and pledge of sales tax revenue allocated to the County from the State’s Local Government Half-Cent Sales Tax Clearing Trust Fund. Sales Tax Revenue Refunding Bonds, Series 2009A – To account for debt service requirements to retire the debt issued during fiscal year 2009. These bonds are payable solely from and secured by a lien upon and pledge of sales tax revenue allocated to the County from the State’s Local Government Half-Cent Sales Tax Clearing Trust Fund. Sales Tax Revenue Refunding Bonds, Series 2012 – To account for debt service requirements to retire the debt issued during fiscal year 2013. These bonds are payable solely from and secured by a lien upon and pledge of sales tax revenue allocated to the County from the State’s Local Government Half-Cent Sales Tax Clearing Trust Fund. Sales Tax Revenue Refunding Bonds, Series 2015 – To account for debt service requirements to partially retire the debt issued during fiscal year 2015. These bonds are payable solely from and secured by a lien upon and pledge of sales tax revenue allocated to the County from the State’s Local Government Half-Cent Sales Tax Clearing Trust Fund. Ponte Vedra MSD State Revolving Loan – To account for debt service requirements to retire the principal balance of a note issued by the Florida Department of Environmental Protection on behalf of St. Johns County. This program is payable solely from the board’s covenant to budget and appropriate necessary funds to cover the annual debt service requirement and the special assessments levied within the boundaries of the Municipal Service District. Pooled Commercial Paper Loan Program – To account for debt service requirements to retire the principal balance of several notes issued by the Florida Local Government Finance Commission. Each loan is issued on behalf of St. Johns County. This program is payable solely from the board’s covenant to budget and appropriate necessary funds to cover the annual debt service requirement. St. Johns County Community Redevelopment Agency Notes – The note accounts for the debt service requirements to retire the annual principal requirements during this fiscal year. This note is payable from and secured by the Board’s promise to budget and appropriate sufficient funds to meet the annual debt service requirements.

- 120 -

DEBT SERVICE FUNDS DESCRIPTIONS (concluded) SunTrust Capital Lease Agreement – The note accounts for the debt service requirements to retire the annual principal requirements during this fiscal year. This note is payable from and secured by a pledge from Trane U.S.A., Inc. that the net present value savings from the higher efficiency electrical equipment installation will meet the annual debt service requirements over the life of the debt. Chase Capital Improvement Revenue Bond, Series 2012 – To account for the debt service requirements to retire the annual principal requirements during this fiscal year. This note is payable from and secured by the Board’s promise to budget and appropriate sufficient funds to meet the annual debt service requirements. TD Bank Capital Improvement Revenue Bonds, Series 2014 – To account for the debt service requirements to retire the annual principal requirements during this fiscal year. This note is payable from and secured by the Board’s promise to budget and appropriate sufficient funds to meet the annual debt service requirements. State Revenue Sharing Revenue Bonds, Series 2014 - To account for debt service requirements to retire the debt issued during fiscal year 2015. These bonds are payable solely from and secured by a lien upon and pledge of approximately 50% of the State Revenue Sharing Funds allocated to the County from the State’s Revenue Sharing Trust Fund.

CAPITAL PROJECTS FUNDS DESCRIPTIONS Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities or improvements (other than those financed by the Proprietary Funds). The County maintains the following Capital Projects Funds: Beach Re-nourishment Project – To account for resources to be used to replenish the sand along approximately 2.5 miles of beach that has been eroded due to storm damage. This project is being done through the joint cooperation of the U.S. Army Corp of Engineers and the Florida Department of Environmental Protection. SR207 Corridor Improvement Group Development Project – (Formerly Known As the SR207 Fair Share Capital Program) To account for developer contributions for transportation infrastructure improvements along the SR207 Corridor under the terms of the development order. Sales Tax Revenue Refunding Bonds, Series 2015 – To account for bond proceeds used for the construction of several projects relating to the County’s capital improvement plan.

ST. JOHNS COUNTY, FLORIDACOMBINING BALANCE SHEET- NONMAJOR GOVERNMENTAL FUNDSSeptember 30, 2016

Special Revenue Funds

County LawHealth Building Court Enforcement

Department Services Facilities Trust

ASSETS

Equity in pooled cash and cash equivalents 10,161$ 5,608,303$ 48,621$ 72,629$ Investments 7,958,396 Accounts receivable 1,876 Notes receivableInterest receivable 20,569 Due from other governments 73,200 InventoryOther assets 4,067

TOTAL ASSETS 10,161$ 13,666,411$ 48,621$ 72,629$


LIABILITIES:Accounts payable and accrued liabilities 281,184$ Customer depositsAdvances from other fundsDue to other funds 10,311 Due to other governments 72,575 Unearned revenue TOTAL LIABILITIES -$ 364,070 -$ -$

FUND BALANCES (DEFICITS)NonspendableRestricted 11,772,514 47,468 72,629 CommittedAssigned 10,161 1,529,827 1,153 Unassigned TOTAL FUND BALANCES (DEFICIT) 10,161 13,302,341 48,621 72,629

TOTAL LIABILITIES AND FUND BALANCES (DEFICIT) 10,161$ 13,666,411$ 48,621$ 72,629$ (continued)

- 121 -


ASSETS

Equity in pooled cash and cash equivalentsInvestmentsAccounts receivableNotes receivableInterest receivableDue from other governmentsInventoryOther assets

TOTAL ASSETS


LIABILITIES:Accounts payable and accrued liabilitiesCustomer depositsAdvances from other fundsDue to other fundsDue to other governmentsUnearned revenue TOTAL LIABILITIES

FUND BALANCES (DEFICITS)NonspendableRestrictedCommittedAssignedUnassigned TOTAL FUND BALANCES (DEFICIT)

TOTAL LIABILITIES AND FUND BALANCES (DEFICIT)

Special Revenue Funds (continued)

StateHousing Community Court CrimeInitiatives Based Technology PreventionProgram Care Fund Fund

1,223,048$ 396,330$ 1,770,653$ 5,195$ 3,048,431

6,959 300,000

7,879

1,523,048$ 403,289$ 4,826,963$ 5,195$

40,744$ 147,665$ 12,370$

23 6,960 202 5,195$ 177,089

40,767 331,714 12,572 5,195

300,000 1,173,726 71,575 4,690,383

8,555 124,008

1,482,281 71,575 4,814,391 -

1,523,048$ 403,289$ 4,826,963$ 5,195$ (continued)

- 122 -


ASSETS


TOTAL ASSETS






TouristDevelopment Tree

Beach Pier Tax Bank

258,349$ 124,034$ 4,042,395$ 1,504,330$ 1,722,354

130 686,984

4,452

841 661

259,320$ 124,695$ 4,729,379$ 3,231,136$

104,847$ 11,124$ 252,562$ 107,368$

139,868 504 666 509 1,238

245,224 12,866 253,228 107,368

4,419,192 3,063,209

14,096 111,829 56,959 60,559

14,096 111,829 4,476,151 3,123,768

259,320$ 124,695$ 4,729,379$ 3,231,136$ (continued)

- 123 -


ASSETS


TOTAL ASSETS






County County AlcoholCommunications Cultural Golf and Drug

Surcharge Center Course Abuse

194,120$ 2,890,323$ 1,260,392$ 12,516$

24,958 3,432

45,610 6,333 2,382

194,120$ 2,921,614$ 1,311,816$ 12,516$

398,623$ 91,259$ 7,835

2,296 766 53,112 4,475

1,915,438 -$ 2,377,304 96,500 -$

45,610 179,828 12,435

14,292 1,169,706 81 544,310

194,120 544,310 1,215,316 12,516

194,120$ 2,921,614$ 1,311,816$ 12,516$ (continued)

- 124 -


ASSETS


TOTAL ASSETS






Impact Impact ImpactBoating Fees Fees Fees

Improvement Buildings Police Fire/EMS

353,020$ 1,518,538$ 602,879$ 1,917,911$ 251,297 925,934

249 124 331649 2,393 826 57 2,084

353,020$ 1,771,559$ 603,060$ 2,848,653$

771$ 97$ 1,009$

-$ 771 97 1,009

249 124 331 349,711 1,756,805 595,024 2,807,494

3,309 13,734 7,815 39,819

353,020 1,770,788 602,963 2,847,644

353,020$ 1,771,559$ 603,060$ 2,848,653$ (continued)

- 125 -


ASSETS


TOTAL ASSETS






Impact Impact E-911Fees Fees Communi-

Roads Parks cations

6,023,159$ 1,102,024$ 897,588$ 7,836,615

2,447 497 20,253 6,593 1,057

13,889,067$ 1,103,578$ 897,588$

680,993$ 359$

91,072$

680,993 359 91,072

2,447 497 11,564,865 987,985 806,516

1,640,762 114,737

13,208,074 1,103,219 806,516

13,889,067$ 1,103,578$ 897,588$

- 126 -


ASSETS


TOTAL ASSETS






St. AugustineVilano South PrivateStreet Street Elkton Roads

Lighting Lighting Drainage M.S.B.U.

9,921$ 14,438$ 2,544$ 21,552$

9,921$ 14,438$ 2,544$ 21,552$

3,065$

55,594$ 17,680

-$ 3,065 -$ 73,274

9,728 10,942 2,462

193 431 82 (51,722)

9,921 11,373 2,544 (51,722)

9,921$ 14,438$ 2,544$ 21,552$ (continued)

- 127 -


ASSETS


TOTAL ASSETS






St. Johns Driver'sCounty Education

Treasure Beach Transit Northwest SafetyMSBU System Recreation Fund

347,180$ 18,616$ 283,573$ 79,042$

126,087

347,180$ 144,703$ 283,573$ 79,042$

100,492$ 49,500$

2,194,781$ 347,179 203

2,541,960 100,695 -$ 49,500

44,008 280,513 28,584

3,060 958 (2,194,780) (2,194,780) 44,008 283,573 29,542

347,180$ 144,703$ 283,573$ 79,042$ (continued)

- 128 -


ASSETS


TOTAL ASSETS






Summerhaven Court Records TeenMSTU Modernization Modernization Court

144,601$ 862,574$ 733,841$ 46,050$

7,429

144,601$ 870,003$ 733,841$ 46,050$

22,050$ 2,679$

1,896 475 19,160$

19,160 23,946 -$ 3,154

122,807 846,057 733,841 42,896

2,634

125,441 846,057 733,841 42,896

144,601$ 870,003$ 733,841$ 46,050$ (continued)

- 129 -


ASSETS


TOTAL ASSETS






EquitableTitle SharingIV D Proceeds HIDTA CanteenFund Fund Fund Fund

40,127$ 176,885$ 259,797$

37,973

33,757 318,500$

73,884$ 176,885$ 318,500$ 297,770$

4,567$ 77,004$

1,491 241,496 8,375$

6,058 -$ 318,500 8,375

67,826 176,885 281,671

7,724

67,826 176,885 - 289,395

73,884$ 176,885$ 318,500$ 297,770$ (continued)

- 130 -


ASSETS


TOTAL ASSETS





Special Revenue Funds (concluded)Debt Service Funds

TransportationImprovement

Total RevenueNET Alarm Special Refunding Bonds, RFund Fund Revenue Series 2012

35,899$ 34,913,158$ 7,466$ 21,743,027

6,979$ 776,720 303,648 56,195

562,161 45,610 14,284

35,899$ 6,979$ 58,414,803$ 7,466$

270$ 4,802$ 2,395,404$ 7,835

2,250,375 2,177 878,835

328,158 35,629 1,951,067 35,899 6,979 7,811,674 -$

349,258 46,737,908

281,671 4,936,484 7,466

(1,702,192) - - 50,603,129 7,466

35,899$ 6,979$ 58,414,803$ 7,466$ (continued)

- 131 -


ASSETS


TOTAL ASSETS





Debt Service Funds (continued)

Transportation Sales Tax Sales Tax Sales TaxImprovement Revenue Revenue Revenue

Revenue Refunding Refunding RefundingRefunding Bonds, Bonds, Bonds, Bonds,

Series 2015 Series 2009 Series 2009A Series 2012

18,586$ 19,875$ 7,601$ 5,921$ 1,913,727

4,946

18,586$ 1,938,548$ 7,601$ 5,921$

379$

-$ 379 -$ -$

18,586 1,938,169 7,601 5,921

18,586 1,938,169 7,601 5,921

18,586$ 1,938,548$ 7,601$ 5,921$ (continued)

- 132 -


ASSETS


TOTAL ASSETS






Sales Tax $45M FLGFC St. Johns CountyRevenue Ponte Vedra Pooled CommunityRefunding MSD State Commercial Redevelopment

Bonds, Revolving Paper Loan Agency RefundingSeries 2015 Loan Program Notes

13,905$ 1,272,341$ 4,093$ 1,516$

13,905$ 1,272,341$ 4,093$ 1,516$

-$ -$ -$ -$

1,254,429

13,905 17,912 4,093 1,516

13,905 1,272,341 4,093 1,516

13,905$ 1,272,341$ 4,093$ 1,516$ (continued)

- 133 -


ASSETS


TOTAL ASSETS






State RevenueChase Capital TD Bank Capital Sharing

SunTrust Capital Improvement Improvement RevenueLease Revenue Bond Revenue Bond Bonds,

Agreement Series 2012 Series 2014 Series 2014

87,121$ 73,589$ 3,456$ 14,637$

87,121$ 73,589$ 3,456$ 14,637$

-$ -$ -$ -$

87,121 73,589 3,456 14,637

87,121 73,589 3,456 14,637

87,121$ 73,589$ 3,456$ 14,637$ (continued)

- 134 -


ASSETS


TOTAL ASSETS





Debt Service Funds (concluded)

Capital Project Funds

SR207 Sales TaxCorridor Revenue

Total Beach Improvement RefundingDebt Re-nourishment Group Development Bonds,

Service Project Project Series 2015

1,530,107$ 103,251$ 155,009$ 3,998,809$ 1,913,727 11,034,268

- -

4,946 24,195 - - -

3,448,780$ 103,251$ 155,009$ 15,057,272$

379$ 123,807$ - - - - -

379 -$ -$ 123,807

- 1,254,429 142,741 14,933,465

- 2,193,972 103,251 12,268

- 3,448,401 103,251 155,009 14,933,465

3,448,780$ 103,251$ 155,009$ 15,057,272$ (continued)

- 135 -


ASSETS


TOTAL ASSETS





Capital Project Funds (concluded)

TotalTotal Other

Capital GovernmentalProjects Funds

4,257,069$ 40,700,334$ 11,034,268 34,691,022

- 776,720 - 303,648

24,195 85,336 - 562,161 - 45,610 - 14,284

15,315,532$ 77,179,115$

123,807$ 2,519,590$ - 7,835 - 2,250,375 - 878,835 - 328,158 - 1,951,067

123,807 7,935,860

- 349,258 15,076,206 63,068,543

- 281,671 115,519 7,245,975

- (1,702,192) 15,191,725 69,243,255

15,315,532$ 77,179,115$ (concluded)

- 136 -

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016


LawCounty Health Building Court Enforcement

Department Services Facilities TrustREVENUES: Taxes 334,784$ Special assessments Licenses and permits 7,887,118$ Intergovernmental Charges for services Fines and forfeitures 475,943$ Contributions Investment income 709 110,030 471 345$ Miscellaneous revenue

TOTAL REVENUES 335,493 7,997,148 476,414 345

EXPENDITURES:Current:

General governmentPublic safety 5,731,187 Physical environmentTransportationEconomic environmentHuman services 334,417 Culture and recreationCourt Related 27,008

Capital Outlay:Debt service:

Principal retirementInterest and fiscal chargesIssuance costs

TOTAL EXPENDITURES 334,417 5,731,187 27,008 -

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,076 2,265,961 449,406 345

OTHER FINANCING SOURCES (USES): Transfers in 4,000 Transfers out (739,169) (40,000) Long-term debt issued Sale of capital assets 34,550

TOTAL OTHER FINANCING SOURCES (USES) 4,000 - (739,169) (5,450)

NET CHANGE IN FUND BALANCES 5,076 2,265,961 (289,763) (5,105)

FUND BALANCES (DEFICITS), BEGINNING OF YEAR 5,085 11,036,380 338,384 77,734

FUND BALANCES (DEFICITS), END OF YEAR 10,161$ 13,302,341$ 48,621$ 72,629$ (continued)

- 137 -


REVENUES: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Contributions Investment income Miscellaneous revenue

TOTAL REVENUES


General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt Related



TOTAL EXPENDITURES


OTHER FINANCING SOURCES (USES): Transfers in Transfers out Long-term debt issued Sale of capital assets


NET CHANGE IN FUND BALANCES

FUND BALANCES (DEFICITS), BEGINNING OF YEAR

FUND BALANCES (DEFICITS), END OF YEAR


State Housing Community Court CrimeInitiatives Based Technology PreventionProgram Care Fund Fund

1,028,401$ 5,315,344$ 151,791

625,042$ 68,892$ 340

3,754 774 33,475

1,183,946 5,316,458 658,517 68,892

727,745 5,369,082

462,306

727,745 5,369,082 462,306 -

456,201 (52,624) 196,211 68,892

89,002 (84,060)

- 89,002 - (84,060)

456,201 36,378 196,211 (15,168)

1,026,080 35,197 4,618,180 15,168

1,482,281$ 71,575$ 4,814,391$ -$ (continued)

- 138 -



TOTAL REVENUES





TOTAL EXPENDITURES








TouristDevelopment Tree

Beach Pier Tax Bank

9,905,875$

821,563$ 330,831$ 700,425$

41,239 2,646 586 7,552 29,345

182

865,448 331,417 9,913,609 729,770

5,742,300 568,789

285,827

794,705 302,418 2,296,451

1,363,494 302,418 8,038,751 285,827

(498,046) 28,999 1,874,858 443,943

843,075 13,583 (466,176) (1,388,505)

376,899 13,583 (1,388,505) -

(121,147) 42,582 486,353 443,943

135,243 69,247 3,989,798 2,679,825

14,096$ 111,829$ 4,476,151$ 3,123,768$ (continued)

- 139 -



TOTAL REVENUES





TOTAL EXPENDITURES








Communi- County Countycations Cultural Golf Alcohol &

Surcharge Center Course Drug Abuse

10,349,913$ 1,267,711$ 147,848$ 7,254$

3,474 11,873 6,599 52 2,400 86,345

151,322 10,364,186 1,360,655 7,306

361,938

5,073 10,166,386 1,491,811

106,732 6,657

361,938 10,166,386 1,605,200 5,073

(210,616) 197,800 (244,545) 2,233

384,131 830,000

- 384,131 830,000 -

(210,616) 581,931 585,455 2,233

404,736 (37,621) 629,861 10,283

194,120$ 544,310$ 1,215,316$ 12,516$ (continued)

- 140 -



TOTAL REVENUES





TOTAL EXPENDITURES








Boating Impact Fees Impact Fees Impact FeesImprovement Buildings Police Fire/EMS

2,251,351$ 331,263$ 2,383,434$

81,365$

1,623 6,417 2,222 17,424

82,988 2,257,768 333,485 2,400,858

59,532 12,214 104,574

16,373

16,373 59,532 12,214 104,574

66,615 2,198,236 321,271 2,296,284

(2,021,567) (521,612)

- (2,021,567) - (521,612)

66,615 176,669 321,271 1,774,672

286,405 1,594,119 281,692 1,072,972

353,020$ 1,770,788$ 602,963$ 2,847,644$ (continued)

- 141 -



TOTAL REVENUES





TOTAL EXPENDITURES








E-911Impact Fees Impact Fees Communi-

Roads Parks cations

5,418,330$ 888,792$

637,813 1,076,361$ 150,554

135,713 4,200 3,100

6,342,410 892,992 1,079,461

3,889,075

12,524

3,889,075 12,524 -

2,453,335 880,468 1,079,461

(1,500,000) (382,888) (1,200,955)

(1,500,000) (382,888) (1,200,955)

953,335 497,580 (121,494)

12,254,739 605,639 928,010

13,208,074$ 1,103,219$ 806,516$

- 142 -



TOTAL REVENUES





TOTAL EXPENDITURES








St. AugustineVilano Street South Street Elkton Private Roads

Lighting Lighting Drainage MSBU

9,429$ 39,292$ 32,063$ 21,926$

59 126 11 97

9,488 39,418 32,074 22,023

6,916 38,084 30,678 2,074

4,118

6,916 38,084 30,678 6,192

2,572 1,334 1,396 15,831

- - - -

2,572 1,334 1,396 15,831

7,349 10,039 1,148 (67,553)

9,921$ 11,373$ 2,544$ (51,722)$ (continued)

- 143 -



TOTAL REVENUES





TOTAL EXPENDITURES








Driver'sTreasure Education

Beach St. Johns County Northwest SafetyMSBU Transit System Recreation Fund

351,143$

1,809,279$ 40,679$

77,867$

1,415 293 1,328 306

352,558 1,809,572 42,007 78,173

99,000

5,378 2,122,558

1,525

126,796

132,174 2,122,558 1,525 99,000

220,384 (312,986) 40,482 (20,827)

276,489

495

- 276,984 - -

220,384 (36,002) 40,482 (20,827)

(2,415,164) 80,010 243,091 50,369

(2,194,780)$ 44,008$ 283,573$ 29,542$ (continued)

- 144 -



TOTAL REVENUES





TOTAL EXPENDITURES








Summerhaven Court Records TeenMSTU Modernization Modernization Court

72,543$

608,659$ 191,723$ 50,095$ 131,529

744 2,198 3,135 206

73,287 610,857 326,387 50,301

112,876

33,682

395,125 83,834

33,682 395,125 112,876 83,834

39,605 215,732 213,511 (33,533)

(470,000)

- - (470,000) -

39,605 215,732 (256,489) (33,533)

85,836 630,325 990,330 76,429

125,441$ 846,057$ 733,841$ 42,896$ (continued)

- 145 -



TOTAL REVENUES





TOTAL EXPENDITURES








EquitableTitle SharingIV D Proceeds HIDTA CanteenFund Fund Fund Fund

167,795$ 11,139$ 3,148,646$ 304,322$

902 46

167,795 12,041 3,148,646 304,368

105,000 3,148,646 247,404

99,969

99,969 105,000 3,148,646 247,404

67,826 (92,959) - 56,964

- - - -

67,826 (92,959) - 56,964

- 269,844 - 232,431

67,826$ 176,885$ -$ 289,395$ (continued)

- 146 -



TOTAL REVENUES





TOTAL EXPENDITURES







Special Revenue Funds (concluded)Debt Service Funds

TransportationTotal Improvement

NET Alarm Special Revenue Bonds,Fund Fund Revenue Series 2006

10,393,986$ 445,572$ 11,646,239

167,573$ 8,054,691 27,570$ 13,303,713

14,968,266 1,534,375

41,579 393,204 2,429

88,973

27,570 167,573 60,425,026 448,001

5,914,708 27,570 186,762 10,593,084

285,827 6,128,445

727,745 5,708,572

15,082,193 1,068,242

-

106,732 570,000 137,571 22,800

-

27,570 186,762 45,753,119 592,800

- (19,189) 14,671,907 (144,799)

19,189 2,459,469 (8,814,932)

- 35,045

- 19,189 (6,320,418) -

- - 8,351,489 (144,799)

- - 42,251,640 144,799

-$ -$ 50,603,129$ -$ (continued)

- 147 -



TOTAL REVENUES





TOTAL EXPENDITURES








Transportation Transportation Sales Tax Sales TaxImprovement Improvement Revenue Revenue

Revenue Revenue Refunding RefundingRefunding Bonds, Refunding Bonds, Bonds, Bonds,

Series 2012 Series 2015 Series 2006 Series 2009

1,387,164$ 165,794$

640,758$

5,783 1,906 2,575$ 19,288

1,392,947 167,700 2,575 660,046

995,000 995,000 1,015,000 1,017,775 1,040,794 49,750 896,453

2,012,775 1,040,794 1,044,750 1,911,453

(619,828) (873,094) (1,042,175) (1,251,407)

625,000 875,000 1,037,781 1,260,781

625,000 875,000 1,037,781 1,260,781

5,172 1,906 (4,394) 9,374

2,294 16,680 4,394 1,928,795

7,466$ 18,586$ -$ 1,938,169$ (continued)

- 148 -



TOTAL REVENUES





TOTAL EXPENDITURES








Sales Tax Sales Tax Sales TaxRevenue Revenue Revenue Ponte Vedra MSDRefunding Refunding Refunding State

Bonds, Bonds, Bonds, RevolvingSeries 2009A Series 2012 Series 2015 Loan

346,553$

1,570,500$ 1,530,659$ 1,954,489$

5,893 5,044 7,586 5,550

1,576,393 1,535,703 1,962,075 352,103

14,618

1,345,000 225,000 475,000 257,438 226,519 1,689,369 2,463,275 90,116

1,571,519 1,914,369 2,938,275 362,172

4,874 (378,666) (976,200) (10,069)

382,888 983,786

- 382,888 983,786 -

4,874 4,222 7,586 (10,069)

2,727 1,699 6,319 1,282,410

7,601$ 5,921$ 13,905$ 1,272,341$ (continued)

- 149 -



TOTAL REVENUES





TOTAL EXPENDITURES








St. Johns CountyCommunity Chase Capital

Pooled Redevelopment SunTrust Capital ImprovementCommercial Paper Agency Refunding Lease Revenue Bond

Loan Program Notes Agreement Series 2012

1,541$ 1,206$ 817$ 4,024$

1,541 1,206 817 4,024

774,000 459,000 181,468 1,092,000 23,118 51,921 60,092 187,471

7,000

804,118 510,921 241,560 1,279,471

(802,577) (509,715) (240,743) (1,275,447)

791,158 510,834 241,466 1,278,566

4,470

795,628 510,834 241,466 1,278,566

(6,949) 1,119 723 3,119

11,042 397 86,398 70,470

4,093$ 1,516$ 87,121$ 73,589$ (continued)

- 150 -



TOTAL REVENUES





TOTAL EXPENDITURES







Debt Service Funds (concluded)Capital Project Funds

TD Bank Capital State RevenueImprovement Sharing Total Beach I

Revenue Bond Revenue Bonds, Debt Re-nourishmentSeries 2014 Series 2014 Service Project

1,998,530$ 346,553

- 767,518$ 6,463,924 55,065$

- - -

1,095$ 3,235 67,972 479 26 26

1,121 770,753 8,877,005 55,544

- -

14,618 - - - - - - 703,360

250,000 555,000 9,188,906 164,388 610,806 8,594,647

7,000

414,388 1,165,806 17,805,171 703,360

(413,267) (395,053) (8,928,166) (647,816)

414,057 8,401,317 574,097 -

4,470 -

414,057 - 8,405,787 574,097

790 (395,053) (522,379) (73,719)

2,666 409,690 3,970,780 176,970

3,456$ 14,637$ 3,448,401$ 103,251$ (continued)

- 151 -



TOTAL REVENUES





TOTAL EXPENDITURES








SR207 Sales TaxCorridor Revenue Total

mprovement Group Refunding Total OtherDevelopment Bonds, Capital Governmental

Project Series 2015 Projects Funds

-$ 12,392,516$ - 11,992,792 - 8,054,691

55,065 19,822,702 - 14,968,266 - 1,534,375 - 41,579

779$ 59,280$ 60,538 521,714 - 88,999

779 59,280 115,603 69,417,634

- 5,914,708 - 10,593,084 - 300,445 - 6,128,445 - 727,745 - 5,708,572 - 15,082,193 - 1,068,242

1,401,238 2,104,598 2,104,598

- 9,295,638 - 8,732,218 - 7,000

- 1,401,238 2,104,598 65,662,888

779 (1,341,958) (1,988,995) 3,754,746

574,097 11,434,883 - (8,814,932) - 4,470 - 35,045

- - 574,097 2,659,466

779 (1,341,958) (1,414,898) 6,414,212

154,230 16,275,423 16,606,623 62,829,043

155,009$ 14,933,465$ 15,191,725$ 69,243,255$ (concluded)

- 152 -

ST. JOHNS COUNTY, FLORIDASCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL- NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016


Beginning Ending Beginning EndingBudget Budget Actual Budget Budget Actual

REVENUES: Taxes 346,680$ 346,680$ 334,784$ Special assessments Licenses and permits 6,352,915$ 6,352,915$ 7,887,118$ Intergovernmental Charges for services Fines and forfeitures Contributions Investment income 155 155 709 83,189 83,189 110,030 Miscellaneous revenue FS 129 statutory reduction (17,342) (17,342) (321,805) (321,805)

TOTAL REVENUES 329,493 329,493 335,493 6,114,299 6,114,299 7,997,148

EXPENDITURES: Current: General government Public safety 9,382,103 9,382,103 5,731,187 Physical environment Transportation Economic environment Human services 335,382 335,382 334,417 Culture and recreation Court related Capital outlay: Debt service: Principal retirement Interest and fiscal charges Issuance costs

TOTAL EXPENDITURES 335,382 335,382 334,417 9,382,103 9,382,103 5,731,187

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (5,889) (5,889) 1,076 (3,267,804) (3,267,804) 2,265,961

OTHER FINANCING SOURCES (USES): Transfers in 4,000 4,000 4,000 Transfers out Long-term debt issued Sale of capital assets

TOTAL OTHER FINANCING SOURCES (USES) 4,000 4,000 4,000 - - -

NET CHANGE IN FUND BALANCES (1,889) (1,889) 5,076 (3,267,804) (3,267,804) 2,265,961

FUND BALANCES (DEFICITS), BEGINNING OF YEAR 1,889 1,889 5,085 10,554,756 10,554,756 11,036,380

FUND BALANCES (DEFICITS), END OF YEAR -$ -$ 10,161$ 7,286,952$ 7,286,952$ 13,302,341$ (continued)

County Health Department Building Services

- 153 -


REVENUES: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Contributions Investment income Miscellaneous revenue FS 129 statutory reduction

TOTAL REVENUES

EXPENDITURES: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court related Capital outlay: Debt service: Principal retirement Interest and fiscal charges Issuance costs

TOTAL EXPENDITURES









592,000$ 592,000$ 475,943$

80 80 471 345$

(29,604) (29,604)

562,476 562,476 476,414 -$ -$ 345

112,082 111,767 27,008

112,082 111,767 27,008 - - -

450,394 450,709 449,406 - - 345

(739,169) (739,169) (739,169) (40,000) (40,000)

34,550

(739,169) (739,169) (739,169) - (40,000) (5,450)

(288,775) (288,460) (289,763) - (40,000) (5,105)

375,350 375,350 338,384 44,503 44,503 77,734

86,575$ 86,890$ 48,621$ 44,503$ 4,503$ 72,629$ (continued)

Court Facilities Law Enforcement Trust

- 154 -



TOTAL REVENUES


TOTAL EXPENDITURES









1,016,151$ 1,016,151$ 1,028,401$ 5,256,704$ 5,435,984$ 5,315,344$ 151,791

340 340 1,900 1,900 3,754 774

(95) (95)

1,017,956 1,017,956 1,183,946 5,256,704 5,436,324 5,316,458

1,670,719 1,670,719 727,745 5,614,279 5,793,899 5,369,082

1,670,719 1,670,719 727,745 5,614,279 5,793,899 5,369,082

(652,763) (652,763) 456,201 (357,575) (357,575) (52,624)

89,002 89,002 89,002

- - - 89,002 89,002 89,002

(652,763) (652,763) 456,201 (268,573) (268,573) 36,378

753,127 753,127 1,026,080 268,573 268,573 35,197

100,364$ 100,364$ 1,482,281$ -$ -$ 71,575$ (continued)

State HousingInitiatives Program Community Based Care

- 155 -



TOTAL REVENUES


TOTAL EXPENDITURES









497,000$ 497,000$ 625,042$ 67,750$ 67,750$ 68,892$

16,500 16,500 33,475

(25,675) (25,675) (3,388) (3,388)

487,825 487,825 658,517 64,362 64,362 68,892

599,237 600,512 462,306

599,237 600,512 462,306 - - -

(111,412) (112,687) 196,211 64,362 64,362 68,892

(68,316) (68,316) (84,060)

- - - (68,316) (68,316) (84,060)

(111,412) (112,687) 196,211 (3,954) (3,954) (15,168)

4,476,802 4,476,802 4,618,180 3,954 3,954 15,168

4,365,390$ 4,364,115$ 4,814,391$ -$ -$ -$ (continued)

Court Technology Fund Crime Prevention Fund

- 156 -



TOTAL REVENUES


TOTAL EXPENDITURES









992,855$ 992,855$ 821,563$ 233,237$ 283,237$ 330,831$

47,253 47,253 41,239 100 100 2,646 70 70 586

(52,010) (52,010) (11,665) (11,665)

988,198 988,198 865,448 221,642 271,642 331,417

646,625 669,402 568,789

999,468 881,482 794,705 291,291 341,291 302,418

1,646,093 1,550,884 1,363,494 291,291 341,291 302,418

(657,895) (562,686) (498,046) (69,649) (69,649) 28,999

843,075 843,075 843,075 13,583 13,583 13,583 (396,550) (466,177) (466,176)

446,525 376,898 376,899 13,583 13,583 13,583

(211,370) (185,788) (121,147) (56,066) (56,066) 42,582

241,551 241,551 135,243 56,066 56,066 69,247

30,181$ 55,763$ 14,096$ -$ -$ 111,829$ (continued)

PierBeach

- 157 -



TOTAL REVENUES


TOTAL EXPENDITURES









8,984,695$ 8,984,695$ 9,905,875$

240,000$ 240,000$ 700,425$

25,000 25,000 2,340 2,340 7,552 5,800 5,800 29,345

182 (450,602) (450,602) (290) (290)

8,561,433 8,561,433 9,913,609 245,510 245,510 729,770

6,312,655 6,279,706 5,742,300

1,667,233 1,667,233 285,827

3,033,918 2,981,377 2,296,451

9,346,573 9,261,083 8,038,751 1,667,233 1,667,233 285,827

(785,140) (699,650) 1,874,858 (1,421,723) (1,421,723) 443,943

(1,355,556) (1,388,505) (1,388,505)

(1,355,556) (1,388,505) (1,388,505) - - -

(2,140,696) (2,088,155) 486,353 (1,421,723) (1,421,723) 443,943

2,518,680 2,518,680 3,989,798 2,736,517 2,736,517 2,679,825

377,984$ 430,525$ 4,476,151$ 1,314,794$ 1,314,794$ 3,123,768$ (continued)

Tourist Development Tax Tree Bank

- 158 -



TOTAL REVENUES


TOTAL EXPENDITURES









8,695,976$ 10,595,976$ 10,349,913$ 166,500$ 166,500$ 147,848$

500 500 3,474 1,175 1,175 11,873 2,400

(8,350) (8,350) (434,858) (434,858)

158,650 158,650 151,322 8,262,293 10,162,293 10,364,186

103,959 372,076 361,938

8,659,463 10,595,224 10,166,386

103,959 372,076 361,938 8,659,463 10,595,224 10,166,386

54,691 (213,426) (210,616) (397,170) (432,931) 197,800

348,370 384,131 384,131

- - - 348,370 384,131 384,131

54,691 (213,426) (210,616) (48,800) (48,800) 581,931

407,497 407,497 404,736 79,041 79,041 (37,621)

462,188$ 194,071$ 194,120$ 30,241$ 30,241$ 544,310$ (continued)

Communications Surcharge County Cultural Center

- 159 -



TOTAL REVENUES


TOTAL EXPENDITURES









1,221,180$ 1,221,180$ 1,267,711$ 6,500$ 6,500$ 7,254$

510 510 6,599 5 5 52 78,360 78,360 86,345

(65,003) (65,003) (325) (325)

1,235,047 1,235,047 1,360,655 6,180 6,180 7,306

5,073 5,073 5,073 3,099,844 3,099,123 1,491,811

107,306 106,733 106,732 6,084 7,378 6,657

3,213,234 3,213,234 1,605,200 5,073 5,073 5,073

(1,978,187) (1,978,187) (244,545) 1,107 1,107 2,233

830,741 830,741 830,000

830,741 830,741 830,000 - - -

(1,147,446) (1,147,446) 585,455 1,107 1,107 2,233

1,147,446 1,147,446 629,861 8,762 8,762 10,283

-$ -$ 1,215,316$ 9,869$ 9,869$ 12,516$ (continued)

County Golf Course Alcohol & Drug Abuse

- 160 -



TOTAL REVENUES


TOTAL EXPENDITURES









1,489,337$ 1,489,337$ 2,251,351$

115,000$ 115,000$ 81,365$

150 150 1,623 750 750 6,417

(3,758) (3,758) (76,040) (76,040)

111,392 111,392 82,988 1,414,047 1,414,047 2,257,768

29,000 59,533 59,532

140,000 116,533 16,373

140,000 116,533 16,373 29,000 59,533 59,532

(28,608) (5,141) 66,615 1,385,047 1,354,514 2,198,236

(2,025,835) (2,025,835) (2,021,567)

- - - (2,025,835) (2,025,835) (2,021,567)

(28,608) (5,141) 66,615 (640,788) (671,321) 176,669

307,485 307,485 286,405 1,385,845 1,385,845 1,594,119

278,877$ 302,344$ 353,020$ 745,057$ 714,524$ 1,770,788$ (continued)

Boating Improvement Impact Fees Building

- 161 -



TOTAL REVENUES


TOTAL EXPENDITURES









242,575$ 242,575$ 331,263$ 1,035,555$ 1,035,555$ 2,383,434$

100 100 2,222 6,410 6,410 17,424

(12,381) (12,381) (53,155) (53,155)

230,294 230,294 333,485 988,810 988,810 2,400,858

4,250 12,215 12,214 96,100 104,574 104,574

4,250 12,215 12,214 96,100 104,574 104,574

226,044 218,079 321,271 892,710 884,236 2,296,284

(521,612) (521,612) (521,612)

- - - (521,612) (521,612) (521,612)

226,044 218,079 321,271 371,098 362,624 1,774,672

271,852 271,852 281,692 770,076 770,076 1,072,972

497,896$ 489,931$ 602,963$ 1,141,174$ 1,132,700$ 2,847,644$ (continued)

Impact Fees Fire/EMSImpact Fees Police

- 162 -



TOTAL REVENUES


TOTAL EXPENDITURES









3,829,619$ 3,829,619$ 5,418,330$ 515,685$ 515,685$ 888,792$

637,813150,544 150,544 150,554

45,550 45,550 135,713 0 0 4,200

(197,706) (197,706) (26,303) (26,303)

3,828,007 3,828,007 6,342,410 489,382 489,382 892,992

7,173,763 8,516,503 3,889,075

23,145 26,190 12,524

7,173,763 8,516,503 3,889,075 23,145 26,190 12,524

(3,345,756) (4,688,496) 2,453,335 466,237 463,192 880,468

0 0 0(1,500,000) (1,500,000) (1,500,000) (382,888) (382,888) (382,888)

(1,500,000) (1,500,000) (1,500,000) (382,888) (382,888) (382,888)

(4,845,756) (6,188,496) 953,335 83,349 80,304 497,580

12,516,323 12,516,323 12,254,739 537,239 537,239 605,639

7,670,567$ 6,327,827$ 13,208,074$ 620,588$ 617,543$ 1,103,219$ (continued)

Impact Fees ParksImpact Fees Roads

- 163 -



TOTAL REVENUES


TOTAL EXPENDITURES









9,592$ 9,592$ 9,429$

1,077,000$ 1,077,000$ 1,076,361$

1,500 1,500 3,100 10 10 59

(53,925) (53,925) (480) (480)

1,024,575 1,024,575 1,079,461 9,122 9,122 9,488

9,533 9,533 6,916

- - - 9,533 9,533 6,916

1,024,575 1,024,575 1,079,461 (411) (411) 2,572

(1,145,528) (1,366,991) (1,200,955)

(1,145,528) (1,366,991) (1,200,955) - - -

(120,953) (342,416) (121,494) (411) (411) 2,572

716,943 716,943 928,010 7,313 7,313 7,349

595,990$ 374,527$ 806,516$ 6,902$ 6,902$ 9,921$ (continued)

E-911 Communications Vilano Street Lighting

- 164 -



TOTAL REVENUES


TOTAL EXPENDITURES









40,748$ 40,748$ 39,292$ 32,000$ 32,000$ 32,063$

30 30 126 11

(2,039) (2,039) (1,600) (1,600)

38,739 38,739 39,418 30,400 30,400 32,074

40,010 40,010 38,084 30,667 30,678 30,678

40,010 40,010 38,084 30,667 30,678 30,678

(1,271) (1,271) 1,334 (267) (278) 1,396

- - - - - -

(1,271) (1,271) 1,334 (267) (278) 1,396

9,974 9,974 10,039 1,216 1,216 1,148

8,703$ 8,703$ 11,373$ 949$ 938$ 2,544$ (continued)

St. Augustine South Elkton DrainageStreet Lighting

- 165 -




REVENUES: Taxes Special assessments 22,701$ 22,701$ 21,926$ 287,100$ 287,100$ 351,143$ Licenses and permits Intergovernmental Charges for services Fines and forfeitures Contributions Investment income 425 425 97 600 600 1,415 Miscellaneous revenue FS129 statutory reduction (1,157) (1,157) (14,385) (14,385)

TOTAL REVENUES 21,969 21,969 22,023 273,315 273,315 352,558

EXPENDITURES: Current: General government Public safety Physical environment Transportation 7,883 7,883 2,074 6,215 6,215 5,378 Economic environment Human services Culture and recreation Court related Capital outlay: Debt service: Principal retirement Interest and fiscal charges 4,120 4,120 4,118 143,655 143,655 126,796 Issuance costs

TOTAL EXPENDITURES 12,003 12,003 6,192 149,870 149,870 132,174

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,966 9,966 15,831 123,445 123,445 220,384

OTHER FINANCING SOURCES (USES): Transfers in - Transfers out (9,966) (9,966) Long-term debt issued Sale of capital assets

TOTAL OTHER FINANCING SOURCES (USES) (9,966) (9,966) - - - -

NET CHANGE IN FUND BALANCES - - 15,831 123,445 123,445 220,384

FUND BALANCES (DEFICITS), BEGINNING OF YEAR - - (67,553) (2,415,164)

FUND BALANCES (DEFICITS), END OF YEAR -$ -$ (51,722)$ 123,445$ 123,445$ (2,194,780)$ (continued)

PrivateRoads MSBU Treasure Beach MSBU

- 166 -


REVENUES: Taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeitures Contributions Investment income Miscellaneous revenue FS129 statutory reduction

TOTAL REVENUES


TOTAL EXPENDITURES








Transit System


3,367,373$ 3,367,373$ 1,809,279$ 55,760$ 55,760$ 45,000 45,000 40,679$

293 200 200 1,328

(2,260) (2,260)

3,367,373$ 3,367,373$ 1,809,572 98,700 98,700 42,007

3,643,862 3,643,862 2,122,558

116,960 116,960 1,525

3,643,862 3,643,862 2,122,558 116,960 116,960 1,525

(276,489) (276,489) (312,986) (18,260) (18,260) 40,482

276,489 276,489 276,489

495

276,489 276,489 276,984 - - -

- - (36,002) (18,260) (18,260) 40,482

80,010 246,452 246,452 243,091

-$ -$ 44,008$ 228,192$ 228,192$ 283,573$ (continued)

St. Johns County NorthwestRecreation

- 167 -



TOTAL REVENUES


TOTAL EXPENDITURES









74,736$ 74,736$ 72,543$

97,000$ 97,000$ 77,867$

100 100 306 200 200 744

(4,855) (4,855) (3,747) (3,747)

92,245 92,245 78,173 71,189 71,189 73,287

99,000 99,000 99,000

147,313 147,313 33,682

99,000 99,000 99,000 147,313 147,313 33,682

(6,755) (6,755) (20,827) (76,124) (76,124) 39,605

- - - - - -

(6,755) (6,755) (20,827) (76,124) (76,124) 39,605

56,973 56,973 50,369 76,124 76,124 85,836

50,218$ 50,218$ 29,542$ -$ -$ 125,441$ (continued)

Summerhaven MSTUDriver's Education Safety Fund

- 168 -



TOTAL REVENUES


TOTAL EXPENDITURES









445,000$ 445,000$ 608,659$ 155,000$ 155,000$ 191,723$ 130,000 130,000 131,529

50 50 2,198 50 50 3,135

445,050 445,050 610,857 285,050 285,050 326,387

91,000 117,300 112,876

441,690 571,390 395,125

441,690 571,390 395,125 91,000 117,300 112,876

3,360 (126,340) 215,732 194,050 167,750 213,511

(470,000) (470,000) (470,000)

- - - (470,000) (470,000) (470,000)

3,360 (126,340) 215,732 (275,950) (302,250) (256,489)

630,325 630,325 630,325 990,330 990,330 990,330

633,685$ 503,985$ 846,057$ 714,380$ 688,080$ 733,841$ (continued)

Records ModernizationCourt Modernization

- 169 -



TOTAL REVENUES


TOTAL EXPENDITURES









90,000$ 149,480$ 167,795$ 59,500$ 59,500$ 50,095$

50 50 206

59,550 59,550 50,301 90,000 149,480 167,795

84,790 88,890 83,834 77,690 101,990 99,969

84,790 88,890 83,834 77,690 101,990 99,969

(25,240) (29,340) (33,533) 12,310 47,490 67,826

- - - - - -

(25,240) (29,340) (33,533) 12,310 47,490 67,826

76,429 76,429 76,429 -

51,189$ 47,089$ 42,896$ 12,310$ 47,490$ 67,826$ (continued)

Teen Court Title IV D Fund

- 170 -



TOTAL REVENUES


TOTAL EXPENDITURES









269,845$ 11,139$ 3,135,210$ 3,148,646$ 3,148,646$

904 902

-$ 270,749 12,041 3,135,210$ 3,148,646 3,148,646

270,749 105,000 3,135,210 3,148,646 3,148,646

- 270,749 105,000 3,135,210 3,148,646 3,148,646

- - (92,959) - - -

- - - - - -

- - (92,959) - - -

269,844 -

-$ -$ 176,885$ -$ -$ -$ (continued)

HIDTA FundEquitable Sharing Proceeds Fund

- 171 -



TOTAL REVENUES


TOTAL EXPENDITURES









47,140$ 27,570$ 225,000$ 225,000$ 304,322$

1,000 1,000 46

226,000 226,000 304,368 -$ 47,140 27,570

477,113 477,113 247,404 47,140 27,570

477,113 477,113 247,404 - 47,140 27,570

(251,113) (251,113) 56,964 - - -

- - - - - -

(251,113) (251,113) 56,964 - - -

251,113 251,113 232,431 -

-$ -$ 289,395$ -$ -$ -$ (continued)

NET FundCanteen Fund

- 172 -



TOTAL REVENUES


TOTAL EXPENDITURES







Special Revenue Funds (completed) Debt Service Funds


448,966$ 448,966$ 445,572$

196,546$ 186,762$ 167,573$

100 100 2,429

(5) (5)

196,546$ 186,762 167,573 449,061 449,061 448,001

196,546 186,762 186,762

570,000 570,000 570,000 22,800 22,800 22,800

196,546 186,762 186,762 592,800 592,800 592,800

- - (19,189) (143,739) (143,739) (144,799)

19,189

- - 19,189 - - -

- - - (143,739) (143,739) (144,799)

- 143,739 143,739 144,799

-$ -$ -$ -$ -$ -$ (continued)

Series 2006Alarm Fund

Transportation ImprovementRevenue Bonds,

- 173 -



TOTAL REVENUES


TOTAL EXPENDITURES









1,387,164$ 1,387,164$ 1,387,164$ 165,794$ 165,794$ 165,794$

500 500 5,783 1,906

(25) (25)

1,387,639$ 1,387,639 1,392,947 165,794$ 165,794$ 167,700

995,000 995,000 995,000 1,017,775 1,017,775 1,017,775 1,040,794 1,040,794 1,040,794

2,012,775 2,012,775 2,012,775 1,040,794 1,040,794 1,040,794

(625,136) (625,136) (619,828) (875,000) (875,000) (873,094)

625,000 625,000 625,000 875,000 875,000 875,000

625,000 625,000 625,000 875,000 875,000 875,000

(136) (136) 5,172 - - 1,906

136 136 2,294 16,680

-$ -$ 7,466$ -$ -$ 18,586$ (continued)

Series 2012

Transportation ImprovementRevenue Refunding Bonds,

Transportation ImprovementRevenue Refunding Bonds,

Series 2015

- 174 -



TOTAL REVENUES


TOTAL EXPENDITURES









640,758$ 640,758$ 640,758$

2,575$ 2,000 2,000 19,288

(100) (100)

-$ -$ 2,575 642,658 642,658 660,046

995,000 995,000 995,000 1,015,000 1,015,000 1,015,000 49,750 49,750 49,750 896,454 896,454 896,453

1,044,750 1,044,750 1,044,750 1,911,454 1,911,454 1,911,453

(1,044,750) (1,044,750) (1,042,175) (1,268,796) (1,268,796) (1,251,407)

1,042,049 1,042,049 1,037,781 1,260,781 1,260,781 1,260,781

1,042,049 1,042,049 1,037,781 1,260,781 1,260,781 1,260,781

(2,701) (2,701) (4,394) (8,015) (8,015) 9,374

2,701 2,701 4,394 1,923,779 1,923,779 1,928,795

-$ -$ -$ 1,915,764$ 1,915,764$ 1,938,169$ (continued)

Series 2009Series 2006Sales Tax Revenue Refunding Bonds, Sales Tax Revenue Refunding Bonds,

- 175 -



TOTAL REVENUES


TOTAL EXPENDITURES









1,570,500$ 1,570,500$ 1,570,500$ 1,530,659$ 1,530,659$ 1,530,659$

5,893 250 250 5,044

(13) (13)

1,570,500 1,570,500 1,576,393 1,530,896 1,530,896 1,535,703

1,345,000 1,345,000 1,345,000 225,000 225,000 225,000 226,519 226,519 226,519 1,689,369 1,689,369 1,689,369

1,571,519 1,571,519 1,571,519 1,914,369 1,914,369 1,914,369

(1,019) (1,019) 4,874 (383,473) (383,473) (378,666)

382,888 382,888 382,888

- - - 382,888 382,888 382,888

(1,019) (1,019) 4,874 (585) (585) 4,222

1,019 1,019 2,727 585 585 1,699

-$ -$ 7,601$ -$ -$ 5,921$ (continued)

Sales Tax Revenue Refunding Bonds,Series 2009A

Sales Tax Revenue Refunding Bonds,Series 2012

- 176 -



TOTAL REVENUES


TOTAL EXPENDITURES









352,000$ 352,000$ 346,553$

1,954,489$ 1,954,489$ 1,954,489$

7,586 275 275 5,550

(17,614) (17,614)

1,954,489 1,954,489 1,962,075 334,661 334,661 352,103

17,290 17,290 14,618

475,000 475,000 475,000 257,439 257,439 257,438 2,463,275 2,463,275 2,463,275 90,116 90,116 90,116

2,938,275 2,938,275 2,938,275 364,845 364,845 362,172

(983,786) (983,786) (976,200) (30,184) (30,184) (10,069)

983,786 983,786 983,786

983,786 983,786 983,786 - - -

- - 7,586 (30,184) (30,184) (10,069)

- - 6,319 1,278,691 1,278,691 1,282,410

-$ -$ 13,905$ 1,248,507$ 1,248,507$ 1,272,341$ (continued)

State Revolving LoanPonte Vedra MSDSales Tax Revenue Refunding Bonds,

Series 2015

- 177 -



TOTAL REVENUES


TOTAL EXPENDITURES









53$ 53$ 1,541$ 50$ 50$ 1,206$

(3) (3) (3) (3)

50$ 50$ 1,541 47 47 1,206

348,000 774,000 774,000 459,000 459,000 459,000 5,043 23,118 23,118 51,876 51,921 51,921

7,000 7,000

353,043 804,118 804,118 510,876 510,921 510,921

(352,993) (804,068) (802,577) (510,829) (510,874) (509,715)

344,421 795,496 791,158 510,834 510,879 510,834

4,470

344,421 795,496 795,628 510,834 510,879 510,834

(8,572) (8,572) (6,949) 5 5 1,119

8,572 8,572 11,042 (5) (5) 397

-$ -$ 4,093$ -$ -$ 1,516$ (continued)

Pooled Commercial Paper Loan Program Agency Refunding NotesSt. Johns County Community Redevelopment

- 178 -



TOTAL REVENUES


TOTAL EXPENDITURES









817$ 4,024$

-$ -$ 817 -$ -$ 4,024

181,468 181,468 181,468 1,092,000 1,092,000 1,092,000 60,093 60,093 60,092 187,472 187,472 187,471

241,561 241,561 241,560 1,279,472 1,279,472 1,279,471

(241,561) (241,561) (240,743) (1,279,472) (1,279,472) (1,275,447)

241,466 241,466 241,466 1,278,566 1,278,566 1,278,566

241,466 241,466 241,466 1,278,566 1,278,566 1,278,566

(95) (95) 723 (906) (906) 3,119

95 95 86,398 906 906 70,470

-$ -$ 87,121$ -$ -$ 73,589$ (continued)

Chase Capital Improvement Revenue BondSeries 2012Agreement

SunTrust Capital Lease

- 179 -


Debt Service Funds (concluded)


REVENUES: Taxes Special assessments Licenses and permits Intergovernmental 767,518$ 767,518$ 767,518$ Charges for services Fines and forfeitures Contributions Investment income 1,095$ 3,235 Miscellaneous revenue 26 FS 129 statutory reduction

TOTAL REVENUES -$ -$ 1,121 767,518$ 767,518 770,753

EXPENDITURES: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Court related Capital outlay: Debt service: Principal retirement 250,000 250,000 250,000 555,000 555,000 555,000 Interest and fiscal charges 164,388 164,388 164,388 610,807 610,807 610,806 Issuance costs

TOTAL EXPENDITURES 414,388 414,388 414,388 1,165,807 1,165,807 1,165,806

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (414,388) (414,388) (413,267) (398,289) (398,289) (395,053)

OTHER FINANCING SOURCES (USES): Transfers in 414,057 414,057 414,057 Transfers out Long-term debt issued Sale of capital assets

TOTAL OTHER FINANCING SOURCES (USES) 414,057 414,057 414,057 - - -

NET CHANGE IN FUND BALANCES (331) (331) 790 (398,289) (398,289) (395,053)

FUND BALANCES (DEFICITS), BEGINNING OF YEAR 331 331 2,666 398,289 398,289 409,690

FUND BALANCES (DEFICITS), END OF YEAR -$ -$ 3,456$ -$ -$ 14,637$ (continued)

State Revenue Sharing Revenue Bonds,Series 2014

TD Bank Capital Improvement Revenue Bonds,Series 2014

- 180 -



TOTAL REVENUES


TOTAL EXPENDITURES







Capital Project Funds


55,065$

500$ 500$ 479 300$ 300$ 779$

(25) (25) (15) (15)

475 475 55,544 285 285 779

603,227 774,561 703,360 154,495 154,495

603,227 774,561 703,360 154,495 154,495 -

(602,752) (774,086) (647,816) (154,210) (154,210) 779

574,097 574,097 574,097

574,097 574,097 574,097 - - -

(28,655) (199,989) (73,719) (154,210) (154,210) 779

199,989 199,989 176,970 154,210 154,210 154,230

171,334$ -$ 103,251$ -$ -$ 155,009$ (continued)

SR207 Corridor Improvement Group DevelopmentProjectProject

Beach Re-nourishment

- 181 -



TOTAL REVENUES


TOTAL EXPENDITURES








Beginning EndingBudget Budget Actual

58,000$ 58,000$ 59,280$

(2,900) (2,900)

55,100$ 55,100 59,280

16,708,126 16,708,126 1,401,238

16,708,126 16,708,126 1,401,238

(16,653,026) (16,653,026) (1,341,958)

- - -

(16,653,026) (16,653,026) (1,341,958)

16,653,026 16,653,026 16,275,423

-$ -$ 14,933,465$ (concluded)

Sales Tax Revenue Bond Projects,Series 2015

- 182 -

- 183 -

GOVERNMENTAL ACTIVITIES

INTERNAL SERVICE FUNDS DESCRIPTIONS

Internal Service Funds are used to account for the financing of goods or services provided by one department to other departments of the government and to other government units, on a cost reimbursement basis. The County maintains the following Internal Service Funds: Workers Compensation Insurance – This fund is used to account for the costs of workers’ compensation insurance to other departments of the Board of County Commissioners and constitutional officers of St. Johns County. Health Insurance – This fund is used to account for the costs of health and accidental death and dismemberment insurance to other departments of the Board of County Commissioners and constitutional officers of St. Johns County.

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF NET POSITION - INTERNAL SERVICE FUNDSSEPTEMBER 30, 2016

Worker'sCompensation Health

Insurance Insurance Totals

ASSETS

Equity in pooled cash and cash equivalents 515,017$ 4,054,017$ 4,569,034$ Accounts receivable, net 288,199 288,199 Due from other funds 9,692 252,043 261,735 Due from other governments 66,707 66,707

TOTAL ASSETS 524,709 4,660,966 5,185,675

LIABILITIES Accounts payable and accrued liabilities 25,311 382,104 407,415 Estimated liability for self insured losses 2,602,510 2,602,510

TOTAL LIABILITIES 25,311 2,984,614 3,009,925

NET POSITION

Unrestricted 499,398 1,676,352 2,175,750

TOTAL NET POSITION 499,398$ 1,676,352$ 2,175,750$

- 184 -

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - INTERNAL SERVICE FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

Worker'sCompensation Health


OPERATING REVENUES: Charges for services 625,421$ 20,114,178$ 20,739,599$ Retiree charges for services 1,822,376 1,822,376 Donation 50,000 50,000 Other operating revenue 436,478 436,478

Total operating revenues 625,421 22,423,032 23,048,453

OPERATING EXPENSES: Salaries and benefits 237,506 143,103 380,609 Contractual services 1,175,375 27,402,842 28,578,217 Operating and maintenance expenses 5,645 267,504 273,149

Total operating expenses 1,418,526 27,813,449 29,231,975

OPERATING LOSS (793,105) (5,390,417) (6,183,522)

NON-OPERATING REVENUES: Investment income (loss) (4,218) 32,581 28,363

DECREASE IN NET POSITION (797,323) (5,357,836) (6,155,159)

NET POSITION, BEGINNING OF YEAR 1,296,721 7,034,188 8,330,909

NET POSITION, END OF YEAR 499,398$ 1,676,352$ 2,175,750$

- 185 -

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF CASH FLOWS - INTERNAL SERVICE FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

Worker's Compensation Health


CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from customers 642,263$ 23,526,112$ 24,168,375$ Payments to suppliers (1,165,844) (27,048,708) (28,214,552) Payments to employees (235,861) (86,292) (322,153)

Net cash used in operating activities (759,442) (3,608,888) (4,368,330)

INVESTING ACTIVITIES: Investment purchases (6,695) (108,552) (115,247) Proceeds from sales of investments 877,167 5,837,728 6,714,895 Investment income (loss) (2,308) 46,553 44,245

Net cash provided by investing activities 868,164 5,775,729 6,643,893

NET CHANGE IN CASH AND CASH EQUIVALENTS 108,722 2,166,841 2,275,563

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 406,295 1,887,176 2,293,471

CASH AND CASH EQUIVALENTS, END OF YEAR 515,017$ 4,054,017$ 4,569,034$

Reconciliation of operating loss to net cash provided by (used in) operating activities: Operating loss (793,105)$ (5,390,417)$ (6,183,522)$ Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Change in accounts receivable 541,457 541,457 Change in due from other funds 18,487 618,434 636,921 Change in accounts payable and accrued liabilities 16,041 366,903 382,944 Change in due to other funds (865) (3,329) (4,194) Change in estimated liability for self insured losses 258,064 258,064

Net cash used in operating activities (759,442)$ (3,608,888)$ (4,368,330)$

- 186 -

- 187 -

FIDUCIARY FUNDS DESCRIPTIONS

Agency Funds – Agency Funds are custodial in nature and do not involve measurement of results of operations. The County maintains the following Agency Funds: Board of County Commissioners:

Pass Through Grants – To account for the collection and disbursement of grant funds to the constitutional officers.

Employee Flexible Spending Accounts – To account for the collection and disbursement of employee pre-tax funds collected for family medical and day-care expenses.

Clerk of Courts:

Agency Fund – To account for the receipt and disbursement of funds used for the judicial law library, fines and service charges, bond funds, fees and related court costs for small claims court, litigants in court cases, juror and witnesses, and court-ordered alimony and child support.

Sheriff:

Levy Account – To account for the collection and disbursement of fees and costs related to enforcement of civil levy action. Restitution – To account for prisoner restitution of funds collected and disbursed pursuant to a court order. Civil Services – To account for process services charged in civil cases and enforceable writ executions. Inmate Trust – To account for the receipt of personal funds from the fund disbursements to inmates.

Tax Collector:

Taxes and Tags – To account for the collection and disbursement of ad valorem taxes, tourist development taxes, non ad valorem assessments, vehicle tags and titles.

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF FIDUCIARY NET

POSITION - AGENCY FUNDSSeptember 30, 2016

Board of Clerk ofCounty Circuit Sheriff Agency

Commissioners Court Funds

EmployeeFlexible Spending Agency Levy

Accounts Fund Account

ASSETS

Equity in pooled cash and cash equivalents 215,835$ 6,725,038$ 1,470$ Accounts receivable 7,239

TOTAL ASSETS 215,835$ 6,732,277$ 1,470

LIABILITIES

Assets held for others 215,835$ 6,732,277 1,470$

TOTAL LIABILITIES 215,835 6,732,277 1,470

NET POSITION -$ -$ -$

- 188 -

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF FIDUCIARY NET

POSITION - AGENCY FUNDSSeptember 30, 2016

ASSETS

Equity in pooled cash and cash equivalents Accounts receivable

TOTAL ASSETS

LIABILITIES

Assets held for others

TOTAL LIABILITIES

NET POSITION

Tax CollectorAgency

Inmate Taxes andTrust Tags Total

27,491$ 5,520,700$ 12,490,534$ 24,349 31,588

27,491$ 5,545,049$ 12,522,122$

27,491$ 5,545,049$ 12,522,122

27,491 5,545,049 12,522,122

-$ -$ -$ (concluded)

- 189 -

ST. JOHNS COUNTY, FLORIDACOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES- AGENCY FUNDSFOR THE YEAR ENDED SEPTEMBER 30, 2016

Balance BalanceOctober 1, September 30,

2015 Additions Deductions 2016

BOARD OF COUNTY COMMISSIONERS

PASS-THROUGH GRANTS

ASSETS

Cash and cash equivalents -$ 98,484$ 98,484$ -$

LIABILITIES

Due to other county agencies -$ 98,484$ 98,484$ -$

EMPLOYEE FLEXIBLE SPENDING ACCOUNTS

ASSETS

Cash and cash equivalents 153,923$ 822,005$ 760,093$ 215,835$

LIABILITIES

Assets held for others 153,923$ 822,005$ 760,093$ 215,835$

CLERK OF COURTS

AGENCY FUND

ASSETS

Cash and cash equivalents 5,286,832$ 83,915,926$ 82,477,720$ 6,725,038$ Accounts receivable 6,977 5,170 4,908 7,239

5,293,809$ 83,921,096$ 82,482,628$ 6,732,277$

LIABILITIES

Assets held for others 5,293,809$ 82,150,064$ 80,711,596$ 6,732,277$ Due to other county agencies - 1,771,032 1,771,032 -

5,293,809$ 83,921,096$ 82,482,628$ 6,732,277$

SHERIFF

LEVY TRUST

ASSETS


LIABILITIES

Assets held for others 11,513$ 66,857$ 76,900$ 1,470$ Due to other county agencies - 8,830 8,830 -

11,513$ 75,687$ 85,730$ 1,470$ (continued)

- 190 -




INMATE TRUST

ASSETS


LIABILITIES

Assets held for others 24,545$ 729,593$ 726,647$ 27,491$ Due to other funds - 69,933 69,933 - Due to other county agencies - 38,817 38,817 -

24,545$ 838,343$ 835,397$ 27,491$

CIVIL SERVICES

ASSETS

Cash and cash equivalents 81,367$ 81,367$ -$ Due from other governments 680 680 -

-$ 82,047$ 82,047$ -$

LIABILITIES


RESTITUTION

ASSETS

Cash and cash equivalents -$ 20,533$ 20,533$ -$

LIABILITIES


TAX COLLECTOR

TAXES, TAGS and DELINQUENCIES

ASSETS


5,343,606$ 685,246,587$ 685,045,144$ $5,545,049

LIABILITIES

Assets held for others 5,343,606$ 668,824,645$ 668,623,202$ 5,545,049$ Due to other funds - 5,719,106 5,719,106 - Due to other county agencies - 10,702,836 10,702,836 -

5,343,606$ 685,246,587$ 685,045,144$ 5,545,049$ (continued)

- 191 -




TOTAL - ALL AGENCY FUNDS

ASSETS


10,827,396$ 771,104,782$ 769,410,056$ 12,522,122$

LIABILITIES

Assets held for others 10,827,396$ 752,691,648$ 750,996,922$ 12,522,122$ Due to other funds - 5,789,039 5,789,039 - Due to other county agencies - 12,624,095 12,624,095 -

10,827,396$ 771,104,782$ 769,410,056$ 12,522,122$ (concluded)

- 192 -

ST. JOHNS COUNTY, FLORIDABOARD OF COUNTY COMMISSIONERSSCHEDULE OF EXPENDITURES BY DEPARTMENT - BUDGET AND ACTUALFOR THE YEAR ENDED SEPTEMBER 30, 2016


GENERAL FUND

General Government

Board of County Commissioners 986,842$ 1,028,439$ 1,026,897$ Clerk of Courts 3,505,530 3,505,530 3,000,138 Tax Collector 5,754,755 5,754,755 5,507,951 Property Appraiser 5,176,019 5,176,019 5,054,637 Supervisor of Elections 1,988,794 2,015,708 1,959,171 County Administrator 1,428,807 1,428,807 1,295,552 Construction Services 566,049 616,049 549,672 Management and Budget 1,025,080 1,025,080 903,494 Risk Management 140,753 140,753 98,668 Management Information Systems 3,485,791 3,485,791 3,114,684 Purchasing 583,666 583,666 524,780 Personnel 753,889 753,889 596,263 County Attorney 1,279,990 1,279,990 1,075,104 Growth Management Services 4,481,040 4,626,040 4,321,488 Regional Planning Council 125,492 125,492 125,492 Ponte Vedra Zoning Board 16,423 16,423 11,971 Building Maintenance Services 3,264,515 3,344,515 3,075,468 Courthouse, Annex Maintenance 385,219 386,770 352,388

Total General Government 34,948,654 35,293,716 32,593,818

Public Safety

Sheriff 61,169,629 65,035,757 64,905,488Juvenile Justice Detention Facility 278,575 287,412 287,412 Public Safety Communications 1,185,996 2,029,496 2,001,134 Detention Facility Subsidy 1,100,000 1,198,357 1,198,357 Codes Compliance 805,652 805,652 711,378 Emergency Management 680,176 687,676 607,429 Emergency Medical Service 9,137,142 10,005,892 9,480,762 Medical Examiner 501,998 501,998 395,120 Sheriff Complex Maintenance 2,778,310 2,648,310 2,293,054 Interoperable Radio Systems (E911) 964,024 1,310,852 1,186,697

Total Public Safety 78,601,502 84,511,402 83,066,831

Physical Environment

Agriculture and Home Economics 732,358 732,358 610,068 Hastings Agricultural Research Center 94,048 94,048 411 St. Johns Soil and Water Conservation 56,070 56,070 55,675 St. Johns River Project 10,049 10,049 44

Total Physical Environment 892,525 892,525 666,198 (continued)

- 193 -



Economic Environment

Economic Development 412,293 412,293 387,431 State Tax Incentive Refunding 126,276 126,276 87,762 Veterans Services 297,425 297,425 272,809 Housing 1,029,356 1,892,906 1,797,800 City of St. Augustine Historic CRA 258,288 258,288 257,953 City of St. Augustine Lincolnville CRA 102,183 102,183 101,770

Total Economic Environment 2,225,821 3,089,371 2,905,525

Human Services

Hospitals 348,565 348,565 281,113 Family Medical and Dental Center 4,620 4,620 1,567 Animal Control 1,139,249 1,150,829 1,030,167 Social Services 1,156,613 1,233,518 1,039,991 Medicaid Participation 1,317,876 1,317,876 1,308,781 Council on Aging 7,751 7,751 4,020 Human Services Support 1,972,252 1,972,252 1,930,505 Health & Human Services Complex 667,422 667,422 561,972 Health Care Clinic 470,000 470,000 470,000

Total Human Services 7,084,348 7,172,833 6,628,116

Culture and RecreationLibraries 5,718,610 5,918,845 5,647,433 Recreation Programs 2,294,011 2,283,538 2,193,034 Recreation and Parks 7,344,048 7,346,073 6,875,667 Aquatics Program 718,766 718,766 651,862

Total Culture and Recreation 16,075,435 16,267,222 15,367,996

Court relatedClerk of Courts 3,866,250 3,750,515 3,662,352 Sheriff 1,626,982 1,628,488 1,684,139 Courthouse Maintenance 2,958,958 3,023,407 2,729,477 FS939 Additional Court Costs 540,672 525,552 487,528 States Attorney 71,377 71,377 57,179 Public Defender 1,510 1,510 665 Circuit Court 17,795 17,795 8,215 Guardian Ad Litem 69,899 69,899 67,761 County Court 10,371 10,371 5,472 Court Reporting 2,156 2,156 1,397

Total Court related 9,165,970 9,101,070 8,704,185

Debt ServiceSheriff 1,426,374 1,434,320 1,452,759

Total Debt Service 1,426,374 1,434,320 1,452,759

Total Expenditures 150,420,629$ 157,762,459$ 151,385,428$ (continued)

- 194 -



COUNTY TRANSPORTATION TRUST FUND

Transportation

Road and Sidewalk Construction 22,321,297$ 31,732,561$ 10,771,463$ Road and Bridge Maintenance 9,307,824 9,271,213 7,926,809 Fleet Services 5,670,553 5,670,553 3,642,095 Traffic and Transportation 2,120,676 2,120,676 1,876,151 Engineering 1,845,206 1,880,206 1,721,920 Capital Maintenance 9,490,865 4,755,667 3,235,160 Land Management Systems 2,213,759 2,213,759 2,073,261

Total Expenditures 52,970,180$ 57,644,635$ 31,246,859$

BEACH FUND

Public Safety

City of St. Augustine Beach Patrol 33,430 56,207 56,206 Life Saving Corps 613,195 613,195 512,583

Total Public Safety 646,625 669,402 568,789

Culture and Recreation

Beach Services 664,513 546,527 530,890 Beach Toll Collection 334,955 334,955 263,815

Total Culture and Recreation 999,468 881,482 794,705

Total Expenditures 1,646,093$ 1,550,884$ 1,363,494$

TOURIST DEVELOPMENT TAX FUND

General Government

Category I 4,769,387 4,769,387 4,447,099 Category IV 1,543,268 1,510,319 1,295,201

Total General Government 6,312,655 6,279,706 5,742,300

Culture and Recreation

Category II 2,085,746 2,085,746 1,738,601 Category III 948,172 895,631 557,850

Total Culture and Recreation 3,033,918 2,981,377 2,296,451

Total Expenditures 9,346,573$ 9,261,083$ 8,038,751$ (concluded)

- 195 -

- 196 -


- 197 -

STATISTICAL SECTION

(Unaudited)

Included in the Statistical Section are financial presentations which are intended to provide a broader and more complete understanding of the government and its financial health than is possible from the basic financial schedules included in the Financial Section, Notes and Supplementary Information. Contents Page Financial Trends – These schedules contain trend information to help the reader understand how St. Johns County’s financial performance and well-being have changed over time. -198- Revenue Capacity – These schedules contain information to help the reader assess the County’s most significant revenue resource; property taxes. -208- Debt Capacity – These schedules present information to help the reader assess the affordability of the current levels of outstanding debt and the County’s ability to issue additional debt in the future. -213- Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader in understanding the environment which St. Johns County operates in. -221- Operating Information – These schedules contain service and infrastructure data to assist the reader in understanding the County’s financial report and how it relates to county services and activities. -223- Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

SCHEDULE 1ST. JOHNS COUNTY, FLORIDANET POSITION BY COMPONENT,LAST TEN FISCAL YEARS

2007 2008 2009 2010 2011

Governmental activitiesNet investment in capital assets 690,372,028$ 900,859,557$ 951,132,013$ 946,351,822$ 965,815,168$ Restricted 179,573,763 127,602,227 83,312,356 89,185,740 81,761,316 Unrestricted (41,584,456) (7,198,199) 40,205,062 49,835,748 50,768,768

Total governmental activities net position 828,361,335$ 1,021,263,585$ 1,074,649,431$ 1,085,373,310$ 1,098,345,252$

Business-type activitiesNet investment in capital assets $186,401,183 $201,669,070 $207,715,274 235,043,091$ 241,598,831$ Restricted 31,776,231 24,731,549 4,409,631 4,465,667 6,130,207 Unrestricted 52,074,473 62,821,688 87,927,808 62,447,123 57,236,592

Total business-type activities net position 270,251,887$ 289,222,307$ 300,052,713$ 301,955,881$ 304,965,630$

Primary governmentNet investment in capital assets 876,773,211$ 1,102,528,627$ 1,158,847,287$ 1,181,394,913$ 1,207,413,999$ Restricted 211,349,994 152,333,776 87,721,987 93,651,407 87,891,523 Unrestricted 10,490,017 55,623,489 128,132,870 112,282,871 108,005,360

Total primary government net position 1,098,613,222$ 1,310,485,892$ 1,374,702,144$ 1,387,329,191$ 1,403,310,882$

(continued)

Fiscal Year

- 198 -

SCHEDULE 1ST. JOHNS COUNTY, FLORIDANET POSITION BY COMPONENT,LAST TEN FISCAL YEARS

2012 2013 2014 2015 2016

Governmental activitiesNet investment in capital assets 966,725,562$ 972,172,160$ 971,829,736$ 1,003,746,338$ 1,032,580,465$ Restricted 82,516,411 80,168,118 83,161,247 106,542,807 114,265,396 Unrestricted 69,041,631 73,802,167 67,978,785 (6,823,228) (52,747,810)

Total governmental activities net position 1,118,283,604$ 1,126,142,445$ 1,122,969,768$ 1,103,465,917$ 1,094,098,051$

Business-type activitiesNet investment in capital assets 250,625,455$ 237,378,440$ 244,655,555$ 248,866,248$ 293,107,832$ Restricted 6,224,724 11,921,216 11,726,589 13,115,398 14,093,674 Unrestricted 58,495,197 68,156,500 65,582,576 65,842,399 63,510,146

Total business-type activities net position 315,345,376$ 317,456,156$ 321,964,720$ 327,824,045$ 370,711,652$

Primary governmentNet investment in capital assets 1,217,351,017$ 1,209,550,600$ 1,216,485,291$ 1,252,612,586$ 1,325,688,297$ Restricted 88,741,135 92,089,334 94,887,836 119,658,205 128,359,070 Unrestricted 127,536,828 141,958,667 133,561,361 59,019,171 10,762,336

Total primary government net position 1,433,628,980$ 1,443,598,601$ 1,444,934,488$ 1,431,289,962$ 1,464,809,703$

(concluded)

Fiscal Year

- 199 -

SCHEDULE 2ST. JOHNS COUNTY, FLORIDACHANGES IN NET POSITION,LAST TEN FISCAL YEARS

2007 2008 2009 2010 2011

ExpensesGovernmental activities:

General government 34,536,755$ 35,069,159$ 46,670,205$ 35,289,534$ 35,398,410$ Public safety 94,693,805 101,588,282 95,645,417 98,205,670 100,967,774 Physical environment 1,711,452 1,924,153 1,912,769 1,865,889 1,740,020 Transportation 31,502,249 42,310,909 36,435,671 39,751,781 39,238,447 Economic environment 7,943,819 11,664,766 4,921,367 5,539,862 12,452,779 Human services 16,812,140 16,017,548 14,704,430 14,130,968 14,609,953 Culture and recreation 17,117,605 18,921,558 19,758,387 19,431,292 20,410,983 Court related 8,235,429 9,791,960 7,611,005 6,540,545 6,516,848 Interest on long term debt 10,278,364 9,406,478 10,128,683 9,681,831 9,450,717

Total governmental activities expenses 222,831,618 246,694,813 237,787,934 230,437,372 240,785,931

Business-type activities:Utilities 31,354,946 36,662,776 39,109,744 37,885,417 38,431,844 Solid waste 14,099,480 15,973,577 16,647,606 16,708,777 17,478,399 Golf course 2,109,415 1,956,160 1,892,427 1,754,951 1,630,202 Convention center 1,148,986 1,122,634 1,093,156 1,062,332 1,254,316 Amphitheater

Total business-type activities 48,712,827 55,715,147 58,742,933 57,411,477 58,794,761

Total primary government expenses 271,544,445$ 302,409,960$ 296,530,867$ 287,848,849$ 299,580,692$

Program RevenuesGovernmental activities:Charges for services

General government 19,659,105$ 21,867,384$ 22,387,754$ 30,794,053$ 25,417,964$ Public safety 5,697,638 6,493,397 7,981,180 5,417,220 5,392,253 Physical environment 721,825 803,100 1,514,193 495,493 425,748 Transportation 3,593,500 3,563,005 11,368,441 9,215,915 13,161,177 Economic environment 350,000 69,396 Human services 441,703 495,335 580,562 464,655 605,417 Culture and recreation 1,267,361 1,307,858 2,863,131 6,975,079 6,111,695 Court related 2,366,708 Interest on long term debt

33,747,840 34,530,079 47,045,261 53,362,415 51,183,650

Operating Grants and Contributions:General government 11,074,141 33,509 38,912 57,556 Public safety 2,310,014 2,838,461 2,785,030 3,942,778 3,921,024 Physical environment 413,720 1,285,325 4,424,156 Transportation 1,007,504 6,419,506 1,047,293 939,527 2,879,015 Economic environment 1,462,356 784,932 1,128,772 1,614,404 324,392 Human services 5,993,633 6,371,829 6,497,205 7,084,782 6,126,758 Culture and recreation 543,864 5,649,428 625,265 1,448,166 543,341 Court relatedInterest on long term debt

11,317,371 33,552,017 12,117,074 16,353,894 18,276,242

Capital Grants and Contributions:General government 2,082,816 2,503,840 2,000 Public safety 2,972,502 2,340,253 1,053,985 1,648,752 Physical environment 918,428 356,748 Transportation 146,385,837 172,089,591 180,724,401 48,539,562 9,338,592 Economic environment 490,225 1,155,586 118,400 132,337 198,172 Human services

Culture and recreation 2,899,769 5,380,690 11,199,068 1,408,752

Court related

Interest on long term debt155,749,577 183,826,708 193,095,854 51,731,403 9,536,764

Total governmental activities program revenues 200,814,788$ 251,908,804$ 252,258,189$ 121,447,712$ 78,996,656$ (continued)

Fiscal Year

- 200 -


ExpensesGovernmental activities:

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long term debt

Total governmental activities expenses

Business-type activities:UtilitiesSolid wasteGolf courseConvention centerAmphitheater

Total business-type activities

Total primary government expenses

Program RevenuesGovernmental activities:Charges for services

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long term debt

Operating Grants and Contributions:General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long term debt

Capital Grants and Contributions:General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman services

Culture and recreation

Court related

Interest on long term debt

Total governmental activities program revenues

2012 2013 2014 2015 2016

37,358,794$ 38,407,779$ 36,167,538$ 36,898,626$ 42,314,248$ 95,408,235 100,359,092 109,468,681 108,407,083 135,342,370 1,830,696 1,769,398 1,772,521 1,056,702 1,023,334

43,205,110 42,912,026 37,875,723 35,216,690 49,032,069 3,460,640 3,485,426 3,144,006 3,612,741 3,791,880

11,673,858 11,110,019 17,232,483 8,007,106 17,730,542 24,350,472 23,193,398 26,520,443 26,559,815 34,154,416 6,259,222 6,613,985 9,108,822 9,152,214 10,012,479 8,779,335 9,092,281 8,532,606 8,980,193 8,026,253

232,326,362$ 236,943,404$ 249,822,823$ 237,891,170$ 301,427,591$

37,742,045 39,091,110 41,169,304 42,930,636 45,225,364 17,848,696 18,832,837 19,950,180 18,384,333 19,279,689 1,349,516 1,341,333 1,476,604

994,046 916,101 872,668 1,010,914 613,639

57,934,303 60,181,381 63,468,756 62,325,883 65,118,692

290,260,665$ 297,124,785$ 313,291,579$ 300,217,053$ 366,546,283$

30,642,728$ 42,463,335$ 41,118,744$ 41,886,268$ 44,861,978$ 5,739,971 6,985,775 10,659,040 11,554,996 14,111,871

349,205 368,516 577,514 593,611 1,046,978 19,090,117 10,146,889 14,163,016 18,780,325 16,556,170

339,359 134,720 53,137 519,507 116,424 103,762 93,388 175,049

4,777,473 7,463,023 9,153,321 10,662,244 14,121,139 1,763,068 1,828,631

61,458,360 67,678,682 75,828,534 85,333,900 92,701,816

25,146 25,615 348,291 208,300 4,107,114 4,660,409 6,032,975 5,890,650 4,642,909 1,722,059 1,950,187 1,485,455 1,693,900 2,275,608 1,270,550 661,730 1,155,260 925,255 934,431

751,214 43,043 457,589 625,599 1,180,192 6,274,867 4,900,509 5,099,458 5,164,632 5,444,824

687,317 1,591,842 614,974 591,886 286,149 268,815 89,385

14,813,121 13,832,866 14,871,326 15,509,028 15,061,798

938,744 21,084 2,795 139,912 334,458 394,000

29,703,235 16,090,602 7,823,469 38,607,976 13,192,880 158,400

4,451 7,125

3,140,796 8,917 252,380 6,242,016

33,945,626 16,521,728 8,078,644 44,989,904 13,527,338 110,217,107$ 98,033,276$ 98,778,504$ 145,832,832$ 121,290,952$

(continued)

Fiscal Year

- 201 -


2007 2008 2009 2010 2011

Program RevenuesBusiness-type activities:Fines and Charges for Services

Utilities 27,649,510$ 29,292,560$ 31,362,910$ 32,972,230$ 35,290,571$ Solid waste 14,203,688 15,205,909 17,722,263 18,052,785 17,901,073 Golf course 1,972,117 1,940,553 1,729,287 1,418,671 1,317,368 Convention center 1,326,378 1,241,022 1,293,694 1,339,537 1,345,802 Amphitheater

45,151,693 47,680,044 52,108,154 53,783,223 55,854,814 Operating Grants and Contributions:

Utilities 66,088 Solid waste 45,338 60,974 Golf courseConvention centerAmphitheater

- - 111,426 60,974 - Capital Grants and Contributions:

Utilities 15,086,845 17,640,265 9,359,365 414,336 2,461,636 Solid wasteGolf course 16,289 58,000 Convention centerAmphitheater

15,086,845 17,656,554 9,359,365 472,336 2,461,636 Total business-type activities program revenues 60,238,538$ 65,336,598$ 61,578,945$ 54,316,533$ 58,316,450$

Net (Expenses) RevenuesGovernmental activities 29,077,186$ 5,563,376$ (116,340,222)$ (151,440,716)$ (130,568,824)$ Business-type activities 11,525,711 9,621,451 2,836,012 (3,094,944) (478,311) Total primary government net (expense) revenues 40,602,897$ 15,184,827$ (113,504,210)$ (154,535,660) (131,047,135)

General Revenues and Other Changes in Net PositionGovernmental activities:

Taxes:Property taxes 149,487,750$ 142,256,850$ 137,273,978$ 134,150,326$ 120,149,274$ Communication services tax 2,089,447 2,091,135 2,298,019 2,290,571 2,183,255 Tourist development tax 5,173,763 5,241,193 4,475,364 4,543,544 4,840,567 Utility regulation tax 146,342 32,369 875 Local option gas tax

Shared revenues - intergovernmental unrestricted 9,733,994 25,728,024 20,940,535 17,800,184 14,157,742 Unrestricted earnings on investments 14,904,102 10,070,408 3,981,653 2,378,012 1,210,296 Miscellaneous 525,782 2,295,630 996,781 1,490,246 1,362,740 Transfers (374,961) (376,735) (241,137) (488,288) (363,108)

Special Items:Sale of utility franchise area

Total governmental activities 181,686,219 187,338,874 169,726,068 162,164,595 143,540,766

Business-type activities:Franchise taxes 573,477 529,039 472,157 Unrestricted earnings on investments 6,384,561 5,488,309 4,509,085 2,211,696 1,015,039 Miscellaneous 12,074,995 3,483,925 2,670,695 1,769,089 1,637,756 Transfers 374,961 376,735 241,137 488,288 363,108

Total business-type activities 18,834,517 9,348,969 7,994,394 4,998,112 3,488,060 Total primary government 200,520,736$ 196,687,843$ 177,720,462$ 167,162,707$ 147,028,826$

Changes in Net PositionGovernmental activities 210,763,405$ 192,902,250$ 53,385,846$ 10,723,879$ 12,971,942$ Business-type activities 30,360,228 18,970,420 10,830,406 1,903,168 3,009,749 Total primary government 241,123,633$ 211,872,670$ 64,216,252$ 12,627,047$ 15,981,691$

(continued)

Fiscal Year

- 202 -


Program RevenuesBusiness-type activities:Fines and Charges for Services

UtilitiesSolid wasteGolf courseConvention centerAmphitheater

Operating Grants and Contributions:UtilitiesSolid wasteGolf courseConvention centerAmphitheater

Capital Grants and Contributions:UtilitiesSolid wasteGolf courseConvention centerAmphitheater

Total business-type activities program revenues

Net (Expenses) RevenuesGovernmental activitiesBusiness-type activitiesTotal primary government net (expense) revenues

General Revenues and Other Changes in Net PositionGovernmental activities:

Taxes:Property taxesCommunication services taxTourist development taxUtility regulation taxLocal option gas tax

Shared revenues - intergovernmental unrestrictedUnrestricted earnings on investmentsMiscellaneousTransfers

Special Items:Sale of utility franchise area

Total governmental activities

Business-type activities:Franchise taxesUnrestricted earnings on investmentsMiscellaneousTransfers

Total business-type activitiesTotal primary government

Changes in Net PositionGovernmental activitiesBusiness-type activitiesTotal primary government

2012 2013 2014 2015 2016

35,419,561$ 36,176,480$ 37,103,770$ 40,619,291$ 45,434,031$ 18,766,111 18,690,559 19,297,954 20,168,857 21,278,664 1,110,816 1,087,990 1,044,964 1,388,673 1,366,779 1,360,726 1,371,417 1,220,299

56,685,161 57,321,808 58,807,414 62,159,565 67,932,994

209,801 89,724 25,556 1,585,31642,987

- 252,788 89,724 25,556 1,585,316

7,101,161 2,078,350 3,250,573 13,315,023 36,872,225

25,951

7,101,161 2,104,301 3,250,573 13,315,023 36,872,225 63,786,322$ 59,678,897$ 62,147,711$ 75,500,144$ 106,390,535$

(134,293,086)$ (144,122,558)$ (151,044,319)$ (92,058,338)$ (180,136,639)$ 5,852,019 (502,484) (1,321,045) 13,174,267 41,271,843

(128,441,067) (144,625,042) (152,365,364) (78,884,071) (138,864,796)

129,505,048$ 125,829,724$ 128,922,091$ 136,704,969$ 141,977,948$ 2,098,637 2,088,801 2,284,924 2,295,948 2,232,246 6,930,989 7,344,606 8,220,259 9,161,380 9,905,875

6,854,602 12,984,921 9,333,363 6,785,968 7,596,158 6,463,924 1,394,471 469,285 904,859 2,471,508 1,856,927 1,936,663 8,750,755 1,859,954 1,851,297 1,711,544 (619,291) (384,492) (1,106,413) (292,773) (234,293)

154,231,438 153,432,042 147,871,642 159,788,487 170,768,773

843,240 593,635 659,238 288,370 534,602 187,169 488,658 1,172,579 1,381,471

2,530,594 3,600,679 3,575,300 619,291 384,492 1,106,413 292,773 234,293

4,527,727 4,765,975 5,829,609 1,753,722 1,615,764 158,759,165$ 158,198,017$ 153,701,251$ 161,542,209$ 172,384,537$

19,938,352$ 9,309,484$ (3,172,677)$ 67,730,149$ (9,367,866)$ 10,379,746 4,263,491 4,508,564 14,927,989 42,887,607 30,318,098$ 13,572,975$ 1,335,887$ 82,658,138$ 33,519,741$

(concluded)

Fiscal Year

- 203 -

SCHEDULE 3ST. JOHNS COUNTY, FLORIDAFUND BALANCES, GOVERNMENTAL FUNDS,LAST TEN FISCAL YEARS

2007 2008 2009 2010 2011

General Fund

NonspendableRestricted 460,264$ Assigned 866,119 Unassigned 36,307,857

Reserved 189,880$ 110,805$ Unreserved

Undesignated 40,259,973$ 34,173,058$ 32,758,485 38,566,895

Total General Fund 40,259,973$ 34,173,058$ 32,948,365$ 38,677,700$ 37,634,240$

All Other Governmental Funds

Nonspendable 580,419$ Restricted 61,927,321CommittedAssigned 29,217,103Unassigned (279,459)

Reserved 86,602,639$ 51,080,069$ 42,795,840$ 22,427,823$ Unreserved

UndesignatedSpecial revenue funds 92,971,122 76,522,158 76,905,797 83,071,544

Total all other governmental funds 179,573,761$ 127,602,227$ 119,701,637$ 105,499,367$ 91,445,384$

Fiscal Year

Fiscal years 2007 through 2010 reflects fund balance classifications used prior to the

implementation of GASB 54.

- 204 -

SCHEDULE 3ST. JOHNS COUNTY, FLORIDAFUND BALANCES, GOVERNMENTAL FUNDS,LAST TEN FISCAL YEARS

General Fund

NonspendableRestrictedAssignedUnassigned

ReservedUnreserved

Undesignated

Total General Fund

All Other Governmental Funds

NonspendableRestrictedCommittedAssignedUnassigned

ReservedUnreserved

UndesignatedSpecial revenue funds

Total all other governmental funds

2012 2013 2014 2015 2016

12,100$ 574,110$ 3,748,240$ 2,883,189$ 2,657,953$ 426,906 255,207 283,564 290,808 290,334

45,498,303 47,341,190 48,856,014 47,570,801 48,162,987

45,937,309$ 48,170,507$ 52,887,818$ 50,744,798$ 51,111,274$

584,463$ 607,695$ 727,113$ 622,558$ 628,896$ 60,134,592 55,248,574 53,352,464 67,196,024 69,975,850

338,782 252,619 274,450 225,361 281,671 38,727,314 40,989,272 34,638,052 41,047,447 44,395,090

(149,790) (757,332) (1,515,323) (2,520,338) (1,702,192)

99,635,361$ 96,340,828$ 87,476,756$ 106,571,052$ 113,579,315$

Fiscal Year

Fiscal years 2007 through 2010 reflects fund balance classifications used prior to the

implementation of GASB 54.

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Schedule 4ST. JOHNS COUNTY, FLORIDACHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS,LAST TEN FISCAL YEARS

2007 2008 2009 2010 2011Revenues

Taxes 156,897,302$ 149,621,547$ 144,048,236$ 140,984,441$ 127,173,096$ Special assessments 16,484,846 9,539,061 7,845,236 5,019,340 3,480,870 Licenses and permits 4,210,126 3,706,650 3,167,690 3,282,375 3,738,436 Intergovernmental 50,975,995 44,628,495 53,062,881 56,627,509 52,623,416 Charges for services 25,935,977 27,382,378 27,745,669 24,247,438 29,505,354 Fines and forfeitures 2,350,708 3,640,852 2,832,645 2,299,217 1,945,319 Contributions 306,420 1,772,617 2,997,532 364,821 341,880 Investment income 14,680,412 9,797,628 3,906,851 2,337,859 1,177,736 Miscellaneous revenue 724,801 2,344,708 1,207,611 1,144,818 1,282,800

Total revenues 272,566,587 252,433,936 246,814,351 236,307,818 221,268,907

ExpendituresCurrent:

General government 38,582,562 41,621,996 37,200,843 34,435,253 34,636,976 Public safety 101,932,615 105,297,992 101,683,339 94,671,418 98,131,776 Physical environment 2,015,223 1,871,770 1,794,919 2,004,074 1,937,788 Transportation 36,564,440 41,916,686 33,637,223 34,021,502 34,533,019 Economic environment 12,970,518 12,391,403 7,296,275 5,537,536 3,873,636 Human services 17,756,069 16,071,694 14,351,542 13,670,440 14,052,862 Culture and recreation 20,361,796 18,214,941 21,225,702 19,139,883 18,536,792 Court related 8,258,199 9,857,963 7,605,980 6,678,086 6,669,588

Capital outlay 44,935,977 48,751,308 27,936,078 18,551,607 8,400,474 Debt service:

Principal retirement 8,478,273 10,338,425 17,141,929 8,558,418 6,002,775 Interest and fiscal charges 9,008,260 9,561,807 9,831,086 9,834,189 9,608,075 Arbitrage rebateIssuance costs 1,413,672 5,000 368,900 5,000

Total expenditures 302,277,604 315,900,985 280,073,816 247,107,406 236,383,761

Excess of revenues over (under)expenditures (29,711,017) (63,467,049) (33,259,465) (10,799,588) (15,114,854)

Other Financing Sources (uses):

Transfers in 23,063,334 20,740,481 18,975,922 18,635,374 11,284,443 Transfers out (23,463,295) (21,117,216) (19,217,059) (19,123,662) (11,647,551) Long-term debt issued 93,625,763 5,602,067 15,536,516 2,310,950 Refunding debt issued 19,280,984 Capital lease proceedsPayment to escrow agent (10,558,814) Premium (discount) on long-term debt issued 5,236,188 (126,250) Sale of capital assets 63,231 183,268 242,883 503,991 380,519

Total other financing sources (uses): 98,525,221 5,408,600 24,134,182 2,326,653 17,411

Net change in fund balances 68,814,204$ (58,058,449)$ (9,125,283)$ (8,472,935)$ (15,097,443)$

Debt service as a percentage of non capital expenditures 6.80% 7.45% 10.70% 8.05% 6.85%

(continued)

Fiscal Year

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Schedule 4ST. JOHNS COUNTY, FLORIDACHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS,LAST TEN FISCAL YEARS

RevenuesTaxesSpecial assessmentsLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresContributionsInvestment incomeMiscellaneous revenue

Total revenues


General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt related

Capital outlayDebt service:

Principal retirementInterest and fiscal chargesArbitrage rebateIssuance costs

Total expenditures

Excess of revenues over (under)expenditures

Other Financing Sources (uses):

Transfers inTransfers outLong-term debt issuedRefunding debt issuedCapital lease proceedsPayment to escrow agentPremium (discount) on long-term debt issuedSale of capital assets

Total other financing sources (uses):

Net change in fund balances

Debt service as a percentage of non capital expenditures

2012 2013 2014 2015 2016

138,534,674$ 135,263,131$ 139,427,274$ 148,162,297$ 160,970,671$ 4,741,638 7,103,347 9,495,586 8,562,206 11,992,792

16,716,135 6,993,671 6,740,934 7,560,131 9,124,080 47,159,869 45,768,736 45,479,725 47,083,136 49,126,377 25,418,627 29,714,847 34,157,049 39,420,555 40,840,617 1,827,567 2,417,386 2,825,572 5,100,101 4,515,351

239,287 458,041 620,522 222,612 446,990 1,360,414 441,093 849,467 2,347,475 1,828,564 1,898,314 1,586,880 1,456,052 1,851,296 1,711,544

237,896,525$ 229,747,132 241,052,181 260,309,809 280,556,986

33,156,074 34,936,830 34,424,372 38,080,978 38,508,526 92,684,443 97,333,608 106,255,265 108,873,123 121,599,099 1,872,703 1,719,504 1,614,707 1,027,646 966,643

31,638,179 30,880,534 27,603,099 37,986,839 37,375,304 3,425,297 3,458,785 2,966,699 3,567,617 3,683,528

10,997,648 10,683,490 11,688,439 12,289,836 12,336,688 20,176,755 21,139,487 24,081,510 26,668,542 30,450,189 6,209,593 6,575,878 9,123,640 13,501,206 9,772,427

19,911,607 16,994,935 15,513,121 7,697,435 2,104,598

6,774,584 8,835,982 8,948,993 9,267,834 10,712,916 9,326,108 8,742,030 8,978,887 8,466,488 8,767,699

631,320 9,874 692,338 796,785 40,250 1,066,394 7,000

237,496,649 242,097,848 251,248,856 268,493,938 276,284,617

399,876 (12,350,716) (10,196,675) (8,184,129) 4,272,369

22,975,315 22,190,376 24,250,511 17,499,050 15,249,859 (23,594,606) (22,574,868) (25,356,924) (17,791,823) (15,484,152) 13,137,000 2,882,000 6,736,879 17,500,000 1,697,000 29,751,000 41,030,000 74,870,000 2,976,023 3,565,279 1,499,909 1,361,807

(31,079,243) (43,973,931) (86,204,222) 1,649,947 10,322,127

277,734 8,170,525 419,448 7,591,741 277,856

16,093,170 11,289,381 6,049,914 25,286,782 3,102,370

16,493,046$ (1,061,335)$ (4,146,761)$ 17,102,653$ 7,374,739$

7.40% 7.81% 7.61% 6.80% 7.11%(concluded)

Fiscal Year

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SCHEDULE 5ST. JOHNS COUNTY, FLORIDAASSESSED VALUE AND ACTUAL VALUE

OF TAXABLE PROPERTY,a.

LAST TEN FISCAL YEARS

Taxable Value Taxable Value Total

Fiscal Taxable Value Personal Centrally Total Taxable Direct

Year Real Property Property Assessed Value Tax Rate b.

2006/07 21,233,616,012 831,854,254 23,410,747 22,088,881,013 5.8457

2007/08 23,671,729,278 869,659,215 26,540,132 24,567,928,625 5.0037

2008/09 22,478,870,762 793,061,691 26,282,262 23,308,214,715 5.0371

2009/10 19,617,725,592 794,162,750 27,277,134 20,439,165,476 5.5471

2010/11 17,565,264,709 762,436,149 24,253,580 18,351,954,438 5.5471

2011/12 16,699,267,764 717,828,512 25,197,373 17,422,293,649 5.9371

2012/13 16,290,224,566 695,545,687 21,844,470 17,007,614,723 5.9371

2013/14 16,777,056,091 695,055,988 23,129,846 17,495,241,925 5.9371

2014/15 17,845,549,178 706,397,144 27,123,973 18,579,070,295 5.9371

2015/16 19,484,986,294 743,519,629 31,566,566 20,260,072,489 5.8746

Source: St. Johns County Property Appraiser

a. Property is assessed at the fair market value determined by guidelines provided by the Florida Department of Revenue.

b. Per $1,000 of value.

Notes: The County assesses property annually. Property is assessed at fair market value, therefore the estimated actual value

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SCHEDULE 6ST. JOHNS COUNTY, FLORIDADIRECT AND OVERLAPPINGPROPERTY TAX RATES,LAST TEN FISCAL YEARS

2006/07 2007/08 2008/09 2009/10 2010/11Board of County Commissioners

General Fund 4.9275 4.2214 4.2900 4.8000 4.9000Transportation Trust 0.9000 0.7652 0.7300 0.7300 0.6300County Health Unit 0.0200 0.0171 0.0171 0.0171 0.0171$8,190,000 Debt ServiceGeneral County 5.8475 5.0037 5.0371 5.5471 5.5471

School BoardSchool District 5.0310 4.9320 5.1110 5.3030 5.5710School Board 2.6380 2.6290 2.3690 2.4980 2.4980School Debt 1989 0.1800 0.1600 0.1620 0.0000 0.0000School Board 7.8490 7.7210 7.6420 7.8010 8.0690

Total County-wide 13.6965 12.7247 12.6791 13.3481 13.6161

MunicipalitiesCity of St. Augustine 6.6000 6.3129 6.8232 7.5000 7.5000Town of Hastings 8.0000 7.7087 8.0000 8.0000 8.0000City of St. Augustine Beach 1.8000 1.5864 1.8011 2.2875 2.3992

0.5000 0.2000

Special DistrictsWater Management 0.4620 0.4158 0.4158 0.4158 0.4158Fire 1.2000 1.0954 1.0620 1.3000 1.2000Anastasia Mosquito Control 0.1500 0.1344 0.1325 0.1325 0.1325St. Augustine Airport Authority 0.2055 0.1807 0.1697 0.1697 0.0000St. Augustine Port, Waterway

and Beach District 0.0473 0.0454 0.0454 0.0539 0.0614Vilano Street Lighting 0.0690 0.0114 0.0500 0.0500 0.0500St. Augustine South Lighting 0.1580 0.1328 0.2100 0.2100 0.2100Ponte Vedra Beach MSD 0.3700 0.3510 0.2750 0.2750 0.2750

Florida Inland Navigation 0.0385 0.0345 0.0345 0.0345 0.0345Summer Haven MSTU 10.0000 10.0000 10.0000 10.0000

(continued)

Source: St. Johns County Tax Collector

(per $1000 of taxable value)

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SCHEDULE 6ST. JOHNS COUNTY, FLORIDADIRECT AND OVERLAPPINGPROPERTY TAX RATES,LAST TEN FISCAL YEARS

2011/12 2012/13 2013/14 2014/15 2015/16Board of County Commissioners

General Fund 5.2900 5.3900 5.3900 5.3900 5.1475Transportation Trust 0.6300 0.5300 0.5300 0.5300 0.7100County Health Unit 0.0171 0.0171 0.0171 0.0171 0.0171$8,190,000 Debt ServiceGeneral County 5.9371 5.9371 5.9371 5.9371 5.8746

School BoardSchool District 5.7310 5.4350 5.2960 5.0940 5.0940School Board 2.2480 2.2480 2.2480 2.2480 5.5480School Debt 1989 0.0000 0.0000 0.0000 0.0000 0.0000School Board 7.9790 7.6830 7.5440 7.3420 7.3420

Total County-wide 13.9161 13.6201 13.4811 13.2791 13.2166

MunicipalitiesCity of St. Augustine 7.5000 7.5000 7.5000 7.5000 7.5000Town of Hastings 8.0000 9.2397 8.6000 8.6000 8.5375City of St. Augustine Beach 2.3992 2.3992 2.3992 2.3992 2.3992Beach Bond 0.0787 0.0787 0.0787 0.0800 0.0500

Special DistrictsWater Management 0.3313 0.3313 0.3313 0.3164 0.3023Fire 1.4000 1.4000 1.4000 1.4000 1.4625Anastasia Mosquito Control 0.1325 0.1325 0.1325 0.2450 0.1773St. Augustine Airport Authority 0.0000 0.0000 0.0000 0.0000 0.0000St. Augustine Port, Waterway

and Beach District 0.0614 0.0638 0.0638 0.0638 0.0638Vilano Street Lighting 0.0500 0.0500 0.0500 0.0500 0.0500St. Augustine South Lighting 0.2100 0.2100 0.2100 0.2100 0.2100Ponte Vedra Beach MSD 0.3430 0.3430 0.3750 0.3750 0.0375

Florida Inland Navigation 0.0345 0.0345 0.0345 0.0345 0.0320Summer Haven MSTU 10.0000 10.0000 8.5000 8.5000 8.5000

(concluded)

(per $1000 of taxable value)

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SCHEDULE 7ST. JOHNS COUNTY, FLORIDA

PRINCIPAL PROPERTY TAXPAYERS,

CURRENT YEAR AND TEN YEARS AGO

Fiscal Year 2016 Fiscal Year 2007Percentage Percentage

of Total County of Total CountyTaxable Taxable

Assessed Assessed Assessed AssessedTaxpayer Value Rank Value Value Rank Value

Florida Power & Light 184,766,147$ 1 .84% 118,959,685$ 1 0.48%

CWI Sawgrass Hotel LLC 111,692,042 2 .51%

Northrop Grumman Systems 88,707,480 3 .40% 110,639,572 2 0.45%

Ponte Vedra Corp 67,922,599 4 .31%

BellSouth Telecommunications 46,007,112 5 .21% 55,322,815 4 0.23%

St Aug-St Johns Co Airport 43,543,826 6 .20%

LifeCare Pastoral Services Inc. 39,983,892 7 .18%

Bluegreen Vacations Unlimited 35,273,248 8 .16% 35,124,408 10 0.14%

Florida East Coasy RY 32,936,975 9 .15%

Remington FL Investors LLC 31,150,800 10 .14%

681,984,121$ 3.09% 320,046,480$ 1.30%

Total


- 211 -

SCHEDULE 8ST. JOHNS COUNTY, FLORIDAPROPERTY TAX LEVIES AND COLLECTIONS,LAST TEN FISCAL YEARS

Delinquent TotalFiscal Property Current Tax Percentage Tax Total Tax Percentage ofYear Taxes Levied Collections (1) of Levy Collections Collections Levy Collected

2006/07 153,766,695 148,588,456 96.63% 68,026 148,655,482 96.68%

2007/08 148,017,827 140,957,073 95.23% 809,001 141,766,074 95.78%

2008/09 140,648,140 134,053,243 95.31% 2,740,377 136,793,620 97.26%

2009/10 136,359,880 131,462,350 96.41% 1,308,771 132,771,127 97.37%

2010/11 122,477,111 117,834,977 96.21% 194,277 118,029,254 96.36%

2011/12 126,442,812 121,803,892 96.33% 1,065,234 122,869,126 97.17%

2012/13 123,347,554 118,930,176 96.42% 390,553 119,320,709 96.74%

2013/14 126,858,600 122,272,125 96.38% 272,640 122,544,765 96.60%

2014/15 134,742,204 129,814,700 96.34% 238,842 130,053,542 96.52%

2015/16 146,862,447 141,462,701 96.32% 361,920 141,824,621 96.57%


(1) Aggregate current taxes collected as of close of fiscal year which includes statutory discounts actually taken of 4% in the first month declining one percent each month thereafter.

- 212 -

SCHEDULE 9ST. JOHNS COUNTY, FLORIDARATIOS OF GENERAL BONDEDDEBT OUTSTANDING, LAST TEN FISCAL YEARS

St. Johns County, Florida has not issued any General Obligation Bonds over the last ten fiscal years.

- 213 -

SCHEDULE 10ST. JOHNS COUNTY, FLORIDARATIOS OF OUTSTANDING DEBT BY TYPE,LAST TEN FISCAL YEARS

General Special TaxFiscal Obligation Revenue Revenue Assessment Increment Line of CapitalYear Bonds Bonds Notes Bonds Notes Credit Leases

2007 179,830,000 19,188,946 6,000,000 3,931,648

2008 176,605,000 16,543,276 6,000,000 782,400 4,283,559

2009 196,900,000 6,355,553 5,645,000 2,514,253

2010 192,590,000 6,351,597 5,275,000 260,950 689,790

2011 188,115,000 5,616,224 4,890,000 543,338

2012 196,419,000 4,979,243 4,210,000 3,295,759

2013 191,220,000 4,437,456 3,773,000 4,419,583

2014 189,255,000 4,562,663 3,332,000 4,503,788

2015 195,464,000 3,546,655 2,882,000 4,811,609

2016 187,947,000 4,212,217 2,423,000 4,467,940

(continued)

Governmental Activities

- 214 -


Convention Golf SolidFiscal Utility Center Course Waste Revenue CapitalYear Bonds Bonds Bonds Bonds Notes Leases

2007 120,921,778 1,480,000 3,950,000 17,085,967 6,712,294

2008 147,241,778 1,450,000 3,735,000 16,093,926 6,636,759

2009 142,436,778 1,420,000 3,510,000 15,069,357 6,028,472

2010 137,046,778 1,390,000 1,675,000 14,012,190 5,379,398

2011 131,426,778 1,355,000 12,927,361 4,717,999

2012 127,923,772 1,320,000 15,118,863 4,630,853

2013 156,582,370 1,285,000 16,818,114 4,039,277

2014 152,520,641 1,250,000 19,866,554 3,451,811

2015 146,059,826 8,081,000 12,993,264 2,184,627

2016 141,793,486 6,820,000 13,274,450 1,259,143

(continued)

Business Type Activities

- 215 -


Total Primary Government

Total PercentageFiscal Primary of Personal PerYear Government Income Capita

2007 359,100,633 4.09% 2,065

2008 379,371,698 4.22% 2,094

2009 379,879,413 4.26% 2,069

2010 364,670,703 3.61% 1,919

2011 349,591,700 3.20% 1,813

2012 357,897,490 3.04% 1,825

2013 382,574,780 3.15% 1,898

2014 378,742,457 2.94% 1,826

2015 376,022,981 2.75% 1,761

2016 362,197,234 2.54% 1,598 *(concluded)

* Information not yet available. Amounts are based on trend estimates from Schedule 13.

- 216 -

SCHEDULE 11ST. JOHNS COUNTY, FLORIDAPLEDGED-REVENUE COVERAGE,LAST TEN FISCAL YEARS

Sales Tax Revenue Bonds Capital Improvement Bonds

FiscalYear Revenue Principal Interest Coverage Revenue Principal Interest Coverage

2007 12,442,597 925,000 4,517,739 2.29 4,104,823 430,000 891,185 1.55

2008 12,077,387 1,665,000 4,954,272 1.82 3,932,145 445,000 877,211 1.55

2009 11,168,656 2,129,167 5,578,984 1.45 3,670,757 450,000 864,393 1.50

2010 11,040,727 2,650,000 5,850,324 1.30 3,792,086 470,000 848,661 1.39

2011 11,679,611 2,755,000 5,746,324 1.37 3,977,931 490,000 832,835 1.43

2012 12,432,706 3,035,000 5,636,712 1.43 4,261,642 505,000 814,460 1.51

2013 13,354,239 3,175,000 5,002,792 1.63 4,383,038 525,000 797,033 1.61

2014 14,519,192 3,305,000 5,087,152 1.70 4,770,748 545,000 776,623 1.66

2015 15,814,098 3,440,000 5,108,096 1.85 5,458,912 - 339,337 7.03 a.

2016 17,031,159 4,055,000 5,325,366 1.82 5,298,895 555,000 610,806 2.34

(continued)

a. Series 2014 Capital Improvement Revenue Refunding Bonds refunded the Series 2005, Capital Improvement Revenue & Refunding

Debt Service Debt Service

- 217 -


Net Revenuewith

Fiscal Unit ConnectionYear Revenue Principal Interest Coverage Fees Principal Interest Coverage

2007 8,483,801 b. 1,075,000 2,530,601 2.35 17,123,318 3,700,000 3,138,416 2.50

2008 7,382,655 1,145,000 2,785,056 1.88 15,088,740 3,855,000 2,945,899 2.22

2009 7,663,772 1,180,000 2,750,129 1.95 14,886,459 4,305,000 2,792,741 2.10

2010 7,977,370 1,220,000 2,708,654 2.03 14,808,908 4,870,000 2,609,551 1.98

2011 8,043,139 1,265,000 2,668,417 2.04 14,695,600 5,080,000 2,375,436 1.97

2012 8,266,409 1,305,000 2,422,926 2.22 15,634,258 2,553,006 4,941,101 2.09

2013 8,108,438 1,405,000 2,443,875 2.11 12,891,502 2,470,296 5,477,824 1.62

2014 8,386,930 1,460,000 2,391,000 2.18 13,958,651 2,571,430 5,622,701 1.70

2015 8,719,733 1,510,000 2,197,880 2.35 16,675,972 2,641,114 5,830,186 1.97

2016 9,150,467 1,565,000 2,081,369 2.51 18,584,770 2,656,340 5,645,183 2.24

(continued)


b. The 2006 Supplemental Resolution amended the definition of "Gas Tax Revenues" to provide that Gas Tax Revenues include both the Local Option Fuel Tax and the Constitutional Fuel Tax and further provided that the amendment apply to all Parity Obligations and Additional Bonds. Revenues, prior to Fiscal Year 2007, reflect only amounts available from Local Option Fuel Taxes. Fiscal Year 2007 reflects revenues available from both.

Transportation Improvement Bonds St. Johns County Water and Sewer Bonds

- 218 -


FiscalYear Net Revenue Principal Interest Coverage Net Revenue Principal Interest Coverage

2007 2,864,980$ 405,000$ 1,385,175$ 1.60 1,097,772$ 205,000$ 154,015$ 3.06

2008 3,020,420 445,000 1,359,722 1.67 321,785 215,000 162,685 0.85

2009 3,320,054 500,000 2,052,659 1.30 2,600,667 225,000 153,830 6.86 c.

2010 4,358,180 520,000 2,745,587 1.33 2,607,090 230,000 144,563 6.96

2011 5,325,843 540,000 2,727,387 1.63

2012 4,748,618 950,000 2,712,813 1.30

2013 4,610,240 1,175,000 2,706,094 1.19

2014 4,942,398 1,490,000 2,658,281 1.19

2015 5,480,240 1,550,000 2,594,881 1.32

2016 6,525,796 1,610,000 2,534,869 1.57

(concluded)

d. The 2004 Gulf Breeze, Florida Local Government Loan Program is not included in the above Schedules because the enabling docouments do not require any coverage calculation to provide assurance of the County's ability to meet the debt service requirements of the loan. It only requires the County's pledge to budget and appropriate sufficient resources to meets the annual obligation.


Ponte Vedra Water and Sewer Bonds Solid Waste Bonds

c. Section 5.8 of the Solid Waste Disposal Revenue Bond, Series 2006 requires that the rates provide net revenues that are at least 100% of the Debt Service Requirement. During FY 2008, this requirement was not met primarily due to the increasing fuel costs and the diesel fuel contractual adjustments paid to the contractors which were higher than anticipated.

- 219 -

SCHEDULE 12ST. JOHNS COUNTY, FLORIDALEGAL DEBT MARGIN INFORMATION,LAST TEN FISCAL YEARS

The Constitution of the State of Florida, Section 200.181 Florida Statutes, and St. Johns County,

Florida have set no legal debt limit.

- 220 -

SCHEDULE 13ST. JOHNS COUNTY, FLORIDADEMOGRAPHIC AND ECONOMIC STATISTICS,

LAST TEN FISCAL YEARS

Personal PerIncome Capita

(thousands Personal Unemployment

Fiscal Year Population of dollars) Incomea Rate

2007 173,935 8,789,293 50,179 2.7%

2008 181,180 8,999,561 49,327 5.6%

2009 183,572 8,911,368 47,544 9.1%

2010 190,039 10,098,018 52,798 9.8%

2011 192,852 10,913,181 55,674 8.8%

2012 196,071 11,783,559 58,265 6.6%

2013 201,541 12,156,922 58,019 5.2%

2014 207,443 12,886,864 59,102 4.8%

2015 213,566 13,698,259 60,441 3.8%

2016 226,640 14,249,912 * 61,856 3.9%

* Information not yet available. Amounts are estimated based on the trend method of least squares.

Source: Bureau of Economic and Demographic Research

Note: a. These data were derived by dividing each type of income by the total population of the area, not just the segment of the population receiving that type of income. All per capita figures are prepared by the Bureau of Economic Analysis using Bureau of the Census population data.

- 221 -

SCHEDULE 14ST. JOHNS COUNTY, FLORIDAPRINCIPAL EMPLOYERS,CURRENT YEAR AND NINE YEARS AGO

2016 2007

Percentage Percentageof Total County of Total County

Employer Employees Rank Employment Employees Rank Employment

St. Johns County School District 4,046 1 3.43% 3,264 1 3.23%

Flagler Hospital 1,900 2 1.61% 1,503 3 1.49%

Northrop Grumman 1,200 3 1.02% 968 5 0.96%

St. Johns County 1,105 4 0.94% 2,013 2 2.00%

Florida School for Deaf and Blind 650 5 0.55% 767 7 0.76%

Carlisle Interconnect Technologies 650 6 0.55% -

PGA Tour/Tournament 625 7 0.53% 625 9 0.62%

St. Johns County Sheriff's Office 560 8 0.47% -

Ponte Vedra Inn & Club 550 9 0.47% 950 6 0.94%

Flagler College 525 10 0.44% -

11,811 10% 10,090 10%

Source: St Johns County Chamber of Commerce

- 222 -

SCHEDULE 15ST. JOHNS COUNTY, FLORIDAACTUAL FULL-TIME EQUIVALENT COUNTY GOVERNMENTEMPLOYEES BY FUNCTION,LAST TEN FISCAL YEARS

Function /Program 2007 2008 2009 2010 2011

General Government 423 464 434.5 418.5 394.5

Public Safety - Fire/Rescue 375 395 379 365 373Public Safety - Sheriff 567 595 592 575 561

Physical Environment 168 183 179 178.5 174

Transportation 182 140 129 150 143

Economic Environment 11 10 10 10 11

Human Services 145 118 101.5 106.5 70

Culture/Recreation 222 236 189.5 186 182

Other Uses 2

Court Related Expenses 1(continued)

Source: St. Johns County Finance Department

Actual Full-Time Equivalent Employees as of September 30

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SCHEDULE 15ST. JOHNS COUNTY, FLORIDAACTUAL FULL-TIME EQUIVALENT COUNTY GOVERNMENTEMPLOYEES BY FUNCTION,LAST TEN FISCAL YEARS


General Government 405 395.5 407 425.5 423

Public Safety - Fire/Rescue 375.5 379 376.5 400 402Public Safety - Sheriff 556 580 579 576 618

Physical Environment 175 172.5 171 170 166

Transportation 138 140 140 140 140

Economic Environment 10 8 8 9 9

Human Services 65.5 65.5 62 69 73

Culture/Recreation 169.5 169 167.5 199 206

Other Uses 2 2 2 2 2

Court Related Expenses 1 1 1 1 1

(concluded)

Actual Full-Time Equivalent Employees as of September 30, 2016

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SCHEDULE 16ST. JOHNS COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTION,LAST TEN FISCAL YEARS


Clerk of Courts Felony and Misdemeanor Cases 14,861 13,598 13,598 13,250 10,200 Civil and Probate Cases 4,841 7,268 7,730 8,700 5,837 Small Claims 2,792 2,822 3,296 2,984 1,622 Library Library Card Holders 93,000 105,369 93,656 97,382 104,131 Animal Control Number of Calls 7,500 7,500 6,800 5,988 4,896 Justice and Law Enforcement

Jail Bookings 7,312 6,576 5,856 6,115 5,787 Average Daily Population 527 545 521 478 538 Fire/Rescue Fire Service Calls 20,991 15,705 21,326 19,596 20,785 EMS Rescue Responses Non-Fire 14,426 13,166 15,072 15,255 16,289 EMS Transports Non-Fire 10,105 10,245 10,562 10,810 11,285 Health Services Social Services Client Case Load 1,188 2,748 3,202 2,786 3,235 Case revisits and Re-applications 2,898 3,158 3,630 3,983 3,684 County Health Department Clients 35,122 35,529 34,000 38,383 29,788 Transportation County Streets and Roads in Miles 856 973 973 930 942 Paved Roads Maintained 830 958 958 915 927 Unpaved Roads Maintained 26 15 15 15 15 County Pier Number of Paying Sightseers 71,000 71,000 58,992 58,891 50,511 Number of Paying Fishermen 9,000 9,500 11,236 13,976 15,581 Number of Paying Visitors under 60 80,000 80,500 70,228 67,867 66,092 Golf Course Rounds of Golf 72,500 75,666 63,152 52,700 51,987 Prepaid Pass Holders 200 212 212 212 217

(continued)

Source: Various St. Johns County Departments

Fiscal Year

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SCHEDULE 16ST. JOHNS COUNTY, FLORIDAOPERATING INDICATORS BY FUNCTION,LAST TEN FISCAL YEARS


Clerk of Courts Felony and Misdemeanor Cases 7,013 7,415 6,727 9,397 9,129 Civil and Probate Cases 8,324 5,977 6,350 5,187 5,086 Small Claims 2,479 1,452 1,905 2,058 1,767 Library Library Card Holders 99,913 101,438 101,593 102,000 95,581 Animal Control Number of Calls 4,569 4,471 6,365 8,669 7,205 Justice and Law Enforcement Jail Bookings 6,608 5,614 5,119 4,851 4,527 Average Daily Population 545 446 418 392 414 Fire/Rescue Fire Service Calls 22,126 23,325 24,220 25,933 27,110 EMS Rescue Responses Non-Fire 15,153 16,030 16,516 17,448 19,983 EMS Transports Non-Fire 11,482 11,739 11,940 12,769 13,574 Health Services Social Services Client Case Load 2,962 1,701 4,587 4,680 Case revisits and Re-applications * * * * County Health Department Clients 31,263 49,340 50,000 51,500 Transportation County Streets and Roads in Miles 942 942 945 945 945 Paved Roads Maintained 927 927 930 930 930 Unpaved Roads Maintained 15 15 15 15 15 County Pier Number of Paying Sightseers 43,896 49,695 49,545 50,689 87,127 Number of Paying Fishermen 7,836 5,133 5,118 5,220 12,080 Number of Paying Visitors under 60 51,732 54,828 54,663 55,909 99,207 Golf Course Rounds of Golf 43,697 43,324 44,741 47,578 50,583 Prepaid Pass Holders 215 227 180 200 220

* Information no longer available (concluded)

Fiscal Year

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SCHEDULE 17ST. JOHNS COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTION,LAST TEN FISCAL YEARS


Justice and Law Enforcement Correction Facility Capacities 756 736 733 733 733

Public WorksMiles of Paved Roads 828.75 958 958 915 927Traffic Signals 104 109 115 115 118Bridges 42 43 44 44 47

Fire/Rescue Number of County Stations 17 18 18 18 19 Number of Volunteer Stations 2 2 2 2 2 Professional Firefighters 255 257 267 270 279 Emergency Medical Professionals 246 260 267 270 278 Volunteer Active Firefighters 17 10 10 10 10

Treatment Plants Water Treatment Plants 5 9 9 9 9 Sewer Treatment Plants 8 10 10 10 10 Lift Stations 217 228 238 243 237 County Laboratory 1 1 1 1 1

Family Nutrition Program Number of Participants 27,538 8,246 8,346 * *

Culture/Recreation County Golf Course 1 1 1 1 1 County Fishing Piers 3 3 3 3 3 Libraries 5 6 6 6 6 Outdoor Amphitheater 1 1 1 1 1 Miles of Beach 42 42 42 42 42 Miles of Guarded Beach 12.5 12.5 12.5 12.5 12.5 Soccer/Softball/Baseball Fields 77 83 83 83 83 Basketball/Tennis Courts 59 59 59 59 59

(continued)

* Information not available

Source: Various St. Johns County Departments

Fiscal Year

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SCHEDULE 17ST. JOHNS COUNTY, FLORIDACAPITAL ASSET STATISTICS BY FUNCTION,LAST TEN FISCAL YEARS


Justice and Law Enforcement Correction Facility Capacities 742 761 761 761 761

Public WorksMiles of Paved Roads 942 942 945 945 945Traffic Signals 118 118 118 118 118Bridges 47 47 47 47 47

Fire/Rescue Number of County Stations 19 18 19 19 19 Number of Volunteer Stations 2 2 2 2 2 Professional Firefighters 280 280 279 283 297 Emergency Medical Professionals 279 279 278 283 297 Volunteer Active Firefighters 10 10 12 14 7

Treatment Plants Water Treatment Plants 9 9 9 10 10 Sewer Treatment Plants 10 10 10 10 10 Lift Stations 239 317 325 323 323 County Laboratory 1 1 1 1 1

Family Nutrition Program Number of Participants * * * * *

Culture/Recreation County Golf Course 1 1 1 1 1 County Fishing Piers 3 3 3 3 3 Libraries 6 6 6 6 6 Outdoor Amphitheater 1 1 1 1 1 Miles of Beach 42 42 42 42 42 Miles of Guarded Beach 12.5 12.5 12.5 12.5 12.5 Soccer/Softball/Baseball Fields 83 83 83 83 83 Basketball/Tennis Courts 59 59 59 59 59

(concluded)

*Information not available

Fiscal Year

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St. Johns County, Florida

Schedule of Expenditures of Federal Awards and State Financial Assistance

Year ended September 30, 2016

Federal Expenditures

CFDA Contract Program to

Number Number Expenditures Totals Subrecipients

Department of Housing & Urban Development

Passed through the Department of Community Affairs:

CDBG 14.228 13DB OI 04 65 01 E 07 973$

Emergency Solution Grant 14.231 NPZ58 36,438

Department of the Interior

Passed through Florida Wildlife Commission

Cooperative Endangered Species Conservation Fund 15.615 F12AP00167 39,355

Passed through Florida Department of State, Division of

Historical Resources:Historic Preservation Fund Grant 15.904 F1501 28,972

Department of Justice

Direct Assistance:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2016 JAGC STJO 3 H3 029 24,680

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2015 DJ BX 0568 32,483 57,163

Passed Through Florida Office of the Attorney General

Victims of Crime Act VOCA 16.575 V15124 75,023

Department of Transportation

Direct Assistance:

Highway Planning and Construction 20.205 433659 2 73 01 397,212

Highway Planning and Construction 20.205 432257 1 38 01 474,535

Highway Planning and Construction 20.205 432257 1 58 01 8,937 880,684

Federal Transit Formula Grants 20.507 FL 90 X830 00 25,441

Federal Transit Formula Grants 20.507 FL 90 X852 00 484,027 484,027



Federal Transit Formula Grants 20.507 FL 90 X894 00 402,020 1,345,080 402,020

Bus and Bus Facilities Formula Program 20.526 437585 1 94 15 64,069

Total Federal Transit Cluster 1,409,149

Election Assistance Commission

Passed through the Florida Department of State, Division

of Elections:

Help America Vote Act 90.401 26,914

Environmental Protection Agency

Passed through the Florida Department of Environmental

Protection:

Nonpoint Source Implementation Grants 66.460 G0393 328,849

Department of Health & Human Services

Passed through the Florida Department of Revenue:

Child Support Enforcement Title IV D 93.563 COC55 99,970

Passed Through Florida Department of Children &

Families:

Promoting Safe and Stable Families 93.556 NJ204 196,771

Temporary Assistance for Needy Families 93.558 NJ204 395,586

Chafee Educational and Training Vouchers Program 93.599 NJ204 17,252

Adoption Incentive Payments 93.603 NJ204 25,320

Child Welfare Services State Grants 93.645 NJ204 89,737

Foster Care Title IV E 93.658 NJ204 923,342

Adoption Assistance 93.659 NJ204 613,296

Social Services Block Grant 93.667 NJ204 216,605

Child Abuse and Neglect 93.669 NJ204 561

Chafee Foster Care Independence 93.674 NJ204 34,045

Medical Assistance Program 93.778 NJ204 9,312

Executive Office of The President

Office of National Drug Control & Policy

Direct Assistance:

High Intensity Drug Trafficking 95.001 G15NF0001A 3,148,646

Department of Homeland SecurityDirect Assistance:

Staffing for Adequate Fire and Emergency Response 97.083 EMW 2014 FH 00196 796,899

Federal Agency

229




Federal Expenditures

CFDA Contract Program to

Number Number Expenditures Totals SubrecipientsFederal Agency

Port Security Grant 97.056 EMW 2015 PU 00044 S01 288,992

Passed through the Department of Community Affairs:

Emergency Management Performance Grant 97.042 15 FS 5A 04 65 01 122 82,725

Emergency Management Performance Grant 97.042 17 FG P9 04 65 01 129 3,670 86,395

Passed through the State of Florida:

Homeland Security Grant Program 97.067 15 DS P4 04 65 01 354 7,500

Homeland Security Grant Program 97.067 16 DS T9 04 65 01 386 13,894

Homeland Security Grant Program 97.067 16 DS P4 04 26 02 257 316,137 337,531

Total expenditures of federal awards 10,163,780$

2




State Expenditures

CSFA Contract Program to

Number Number Expenditures Totals Subrecipients

Executive Office of the Governor

Emergency Management Programs 31.063 16 BG 83 04 65 01 055 89,128$

Emergency Management Programs 31.063 17 BF 83 04 65 01 062 3,770 92,898

Department of Environmental Protection

Beach Management Funding Assistance Program 37.003 16SJ1 55,065

Water Policy/ Ecosystem Restoration Master Tract 37.022 27440 773,195

Reclaimed Water Storage Tank 37.066 28419 158,032

Drinking Water Facility Construction 37.076 DW550110 448,791

Wastewater Treatment Facility Construction 37.077 WW550100 12,219

Florida Housing Finance Corporation

State Housing Initiative Partnership Program 40.901 2015 2016 727,745 727,745

Department of State

State Aid to Libraries 45.030 15 ST 76 49,265

State Aid to Libraries 45.030 16 ST 75 134,929 184,194

Department of Transportation

Public Transit Block Grant Program 55.010 418441 1 84 15 436,919

Department of Children and Families

Homeless Challenge Grant 60.014 NPZ64 18,585

Out of Home Supports 60.074 NJ204 173,798

In Home Supports 60.075 NJ204 15,648

Independent Living Program 60.112 NJ204 222,333

CBC Sexually Exploited Children 60.138 NJ204 213,277

Department of Health

County Grant Awards 64.005 C3058 19,548

County Grant Awards 64.005 C4058 20,801 40,349

Total expenditures of state financial assistance 3,573,048$

State Agency

231


Notes to Schedule of Expenditures of Federal Awardsand State Financial Assistance

232

NOTE 1 – BASIS OF PRESENTATION

The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (theSchedule) includes the Federal and State award activity of St. Johns County, Florida for the year endedSeptember 30, 2016. The information in this schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance) and Chapter 10.550, Rules ofthe Auditor General. Because the Schedule presents only a selected portion of the operations of theCounty, it is not intended to and does not present the financial position, changes in net assets, or cashflows of the County.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Suchexpenditures are recognized when they become a demand on current available financial resources.Expenditures on contracts dated before or on December 26, 2014 are recognized following the costprinciples in OMB Circular A 133, and expenditures on all subsequent contracts are recognized followingthe cost principles contained in the Uniform Guidance, wherein certain types of expenditures are notallowable or are limited as to reimbursement.

NOTE 3– INDIRECT COST RATE

The County did not elect to charge the 10% de minimis indirect cost rate or any other indirect cost rateto any federal or state programs.

NOTE 4– SUBRECIPIENTS

The County provided federal awards to subrecipients as follows:

Federal

CFDA Number Amount

Federal Transit Formula Grants 20.507 886,047$

Federal Programs

The County provided state awards to subrecipients as follows:

CSFA Number Amount

State Housing Initiative Partnership Program 52.901 727,745

State Project

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM ANDSTATE PROJECT; REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORMGUIDANCE AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL; AND REPORT ON THE SCHEDULEOF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE

233


Report on Compliance for Each Major Federal Program and State Project

We have audited St. Johns County, Florida’s (the “County”) compliance with the types of compliancerequirements described in the OMB Compliance Supplement and the requirements described in theDepartment of Financial Services’ State Projects Compliance Supplement that could have a direct andmaterial effect on each of its major federal programs and state projects for the year ended endedSeptember 30, 2016. The County’s major federal programs and state projects are identified in thesummary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.

Management’s Responsibility

Management is responsible for compliance with the federal and state statutes, regulations, and theterms and conditions of its federal programs and state projects.


Our responsibility is to express an opinion on compliance for each of the County’s major federalprograms and state projects based on our audit of the types of compliance requirements referred toabove. We conducted our audit of compliance in accordance with auditing standards generally acceptedin the United States of America; the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States; the audit requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance), and Chapter 10.550, Rules of theAuditor General. Those standards, the Uniform Guidance, and Chapter 10.550, Rules of the AuditorGeneral, require that we plan and perform the audit to obtain reasonable assurance about whethernoncompliance with the types of compliance requirements referred to above that could have a directand 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 suchother procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each majorfederal program and state project. However, our audit does not provide a legal determination of theCounty’s compliance.



234

Opinion on Each Major Federal Program and State Project

In our opinion, the County complied, in all material respects, with the types of compliance requirementsreferred to above that could have a direct and material effect on each of its major federal programs andstate projects for the year ended September 30, 2016.

Report on Internal Control Over Compliance

Management of the County is responsible for establishing and maintaining effective internal controlover compliance with the types of compliance requirements referred to above. In planning andperforming our audit of compliance, we considered the County’s internal control over compliance withthe requirements that could have a direct and material effect on each major federal program and stateproject to determine the auditing procedures that are appropriate in the circumstances for the purposeof expressing our opinion on compliance for each major federal program and state project and to testand report on internal control over compliance in accordance with the Uniform Guidance andChapter 10.550, Rules of the Auditor General, but not for the purpose of expressing an opinion on theeffectiveness of internal control over compliance. Accordingly, we do not express an opinion on theeffectiveness of the County’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control overcompliance does not allow management or employees, in the normal course of performing theirassigned functions, to prevent, or detect and correct, noncompliance with a type of compliancerequirement of a federal program or state project on a timely basis. A material weakness in internalcontrol over compliance is a deficiency, or combination of deficiencies, in internal control overcompliance, such that there is a reasonable possibility that material noncompliance with a type ofcompliance requirement of a federal program or state project will not be prevented, or detected andcorrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, ora combination of deficiencies, in internal control over compliance with a type of compliancerequirement of a federal program or state project that is less severe than a material weakness ininternal control over compliance, yet important enough to merit attention by those charged withgovernance.

Our consideration of internal control over compliance was for the limited purpose described in the firstparagraph of this section and was not designed to identify all deficiencies in internal control overcompliance that might be material weaknesses or significant deficiencies and therefore, materialweaknesses or significant deficiencies may exist that were not identified. We identified a deficiency ininternal control over compliance, as described in the accompanying schedule of findings and questionedcosts as item 2016 001, that we consider to be a material weakness.

The County’s response to the internal control over compliance finding identified in our audit is describedin the accompanying schedule of findings and questioned costs. The County’s response was notsubjected to the auditing procedures applied in the audit of compliance and, accordingly, we express noopinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of ourtesting of internal control over compliance and the results of that testing based on the requirements ofthe Uniform Guidance and Chapter 10.550, Rules of the Auditor General. Accordingly, this report is notsuitable for any other purpose.

235

Report on Schedule of Expenditures of Federal Awards and State Financial Assistance

We have audited the financial statements of the governmental activities, the business type activities,each major fund, and the aggregate discretely presented component unit and remaining fundinformation of the County, as of and for the year ended September 30, 2016, and the related notes tothe financial statements, which collectively comprise the County’s basic financial statements. We issuedour report thereon dated September 20, 2017, which contained unmodified opinions on those financialstatements. Our audit was conducted for the purpose of forming opinions on the financial statementthat collectively comprise the basic financial statements. The accompanying schedule of expenditures offederal awards and state financial assistance is presented for purposes of additional analysis as requiredby the Uniform Guidance and Chapter 10.550, Rules of the Auditor General, and is not a required part ofthe basic financial statements. Such information is the responsibility of management and was derivedfrom and relates directly to the underlying accounting and other records used to prepare the basicfinancial statements. The information has been subjected to the auditing procedures applied in the auditof the financial statements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the basic financialstatements or to the basic financial statements themselves, and other additional procedures inaccordance with auditing standards generally accepted in the United States of America. In our opinion,the schedule of expenditures of federal awards and state financial assistance is fairly stated in allmaterial respects in relation to the basic financial statements as a whole.



Schedule of Findings and Questioned CostsYear ended September 30, 2016

236

SECTION I – SUMMARY OF AUDITOR’S RESULTS

(i) The independent auditor’s report on the financial statements expressed unmodified opinions.

(ii) The audit did not report significant deficiencies or disclose material weaknesses in internalcontrol over financial reporting.

(iii) The audit did not disclose any noncompliance considered material to the financial statements.

(iv) The audit disclosed a significant deficiency in the internal control over the major federalprograms and the major state projects that was considered to be a material weakness.

(v) The auditor’s report on compliance for the major federal award programs and major stateprojects expressed an unmodified opinion.

(vi) The audit disclosed a finding relative to the major federal programs and major state projects asdescribed in (iv) above.

(vii) The County’s major federal programs and state projects were:

Federal

CFDA Number

Federal Transit Cluster 20.507, 20.526

High Intensity Drug Trafficking 95.001

Staffing for Adequate Fire and Emergency Response 97.083

Port Security Grant Program 97.056

CSFA Number

Water Policy/ Ecosystem RestorationMaster Tract 37.022

ReclaimedWater Storage Tank 37.066

State Aid to Libraries 45.030

State Housing Initiative Partnership Program 40.901

Federal Programs

State Projects

(viii) A threshold of $750,000 was used to distinguish between Type A and Type B programs forfederal programs, and $300,000 was used for state projects.

(ix) The County did not qualify as a low risk auditee as that term is defined in OMB Circular A 133.



237

SECTION II – FINANCIAL STATEMENT FINDINGS

There were no findings relative to the financial statements.

SECTION III – FINDINGS AND QUESTIONED COSTS – FEDERAL PROGRAMS

Department of Transportation, Federal Transit Cluster CFDA No. 20.507 FederalTransit Formula Grants, Grant No. FL 90 X830 00, FL 90 X852 00, FL 95 X083 00, FL 90X894 00, FL 90 X894 00, and CFDA 20.526 Bus and Bus Facilities Formula Program,Grant No. 437585 1 94 15;Executive Office of The President, Office of National Drug Control & Policy, CFDA95.001 High Intensity Drug Trafficking, Grant No. G15NF0001A; Department ofHomeland Security, CFDA 97.083 Staffing for Adequate Fire and Emergency Response,Grant No. EMW 2014 FH 00196; andDepartment of Homeland Security, CFDA No. 97.056 Port Security Grant Program,Grant No. EMW 2015 PU 00044 S01.

2016 001 Criteria The Uniform Guidance and the Florida Single Audit Actrequire the preparation of a complete and accurate Schedule ofExpenditures of Federal Awards and State Financial Assistance(SEFA).

Condition – The SEFA did not properly report all awards receivedby the County during the current fiscal year. CFDA 20.507, GrantNo. FL 90 X894 00, and CFDA 95.001 were not included on theoriginal schedule. CFDA 97.056 was overstated by $82,500 on theoriginal schedule. After SEFA corrections and evaluation, theresulting Major programs are those listed above in this Section.

Effect The current year’s SEFA did not include all grants requiredto be on the SEFA, or, in some cases, the information included onthe SEFA was not correct.

Questioned Costs – None.

Cause – Procedures established by the County to assure thecompleteness and accuracy were not followed by all departments.The main cause appears to be inadequate communication fromvarious departments to a central SEFA preparer when grants areawarded.



238

SECTION III – FINDINGS AND QUESTIONED COSTS – FEDERAL PROGRAMS (CONTINUED)

Recommendation – We recommend that management reviewcurrent procedures and make revisions if necessary, so thatcommunications, including providing a copy of the grant contractand subsequent communications from departments at keyreporting intervals, between County departments receiving thegrants and the finance department is required and followed everytime a grant is awarded to the County, in order to facilitate thecompleteness and accuracy of the SEFA at year end.

Views of responsible officials – See County’s response letter on page 239.

SECTION IV – FINDINGS AND QUESTIONED COSTS – STATE PROJECTS

Florida Department of Environmental Protection, CSFA No. 37.022 Water Policy/EcosystemRestoration Master Tract, Grant No. 27440;Florida Department of Environmental Protection, CSFA No. 37.066 Reclaimed Water StorageTank, Grant No. 28419;Department of State, CSFA No. 45.030 State Aid to Libraries, Grant No. 15 ST 76 and 16 ST 75;andFlorida Housing Finance Corporation, CSFA No. 40.901 State Housing Initiative PartnershipProgram, Grant 2015 2016 .

Same finding as item 2016 001 above in Section III, with the following state project expendituredifferences: CSFA 37.022, Grant No. 27415 originally reported expenditures of $118,963.However, no expenditures were incurred for this grant during the current fiscal year. CSFA37.022, Grant No. 27440 was understated by $557,330. CSFA 37.066 was overstated by$119,573. After SEFA corrections and evaluation, the resulting Major state projects are thoselisted above in this Section.

Questioned Costs – None.

Views of responsible officials – See County’s response letter on page 239.

St. Johns County Board of County Commissioners

September 20, 201 7

Mr. Alan G. Nast, C.P.A.P.A., Partner Carr, Riggs & Ingram P.O. Box 13494 4010 N. W. 25 Place Gainesville, FL 32606

Dear Alan:

Office of the County Administrator

Michael D. Wanchick, County Administrator

The St. Johns County Board of County Commissioners has drafted an action plan, in response to Section III - Findings and Questioned Costs - Federal Programs, to address the condition and recommendation as set forth by Carr, Riggs, & Ingram.

Condition: The Uniform Guidance and the Florida Single Audit Act require the preparation of a complete and accurate Schedule of Expenditures of Federal Awards and State Financial Assistance (SEF A). Procedures established by the County to assure the completeness and accuracy were not followed by all departments. The main cause appears to be inadequate communication from various departments to a central SEAF prepared when grants are awarded. AS a result, the current year's SEFA did not include all grants required to be on the SEF A, or, in some cases, the information included on the SEF A was not correct.

Recommendation: We recommend that management review current procedures and make revisions if necessary, so that communications, including providing a copy of the grant contract and subsequent communications from departments at key reporting intervals, between County departments receiving the grants and the finance department is required and followed every time a grant is awarded to the County, in order to facilitate the completeness and accuracy of the SEFA at year end.

St. Johns County Action: Because all grants are recognized by the Board of County Commissioners through the budget process (or as a modification to the budget during the fiscal year), the Office of Management & Budget (OMB) will serve as the centralized department to ascertain, collect, and distribute necessary documentation to the County's Finance Department. OMB will establish a checklist criteria (incorporating necessary documentation including the grant contract, federal/state sources, match requirements) that all County departments must submit to receive a grant project.

If any other information or response is necessary, please contact Jesse Dunn, Director for the Office of Management & Budget at (904) 209-0568.

Sincerely,

Michael D. Wanchick County Administrator

500 San Sebast ian View, St. August ine, FL 32084 I P: 904.209.0530 I F: 904.209.0534 www.sjcfl.us

rmacdonald

Typewritten Text

- 239 -

rmacdonald

Typewritten Text

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED INACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

240


We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the governmentalactivities, the business type activities, each major fund, and the aggregate discretely presentedcomponent unit and remaining fund information of St. Johns County, Florida (the “County”), as of andfor the year ended September 30, 2016, and the related notes to the financial statements, whichcollectively comprise the County’s basic financial statements, and have issued our report thereon datedSeptember 20, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the County’s internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances 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.Accordingly, we do not express an opinion on the effectiveness of the County’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detected and corrected on atimely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal controlthat is less severe than a material weakness, yet important enough to merit attention by those chargedwith governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of thissection and was not designed to identify all deficiencies in internal control that might be materialweaknesses or significant deficiencies. Given these limitations, during our audit we did not identify anydeficiencies in internal control that we consider to be material weaknesses. However, materialweaknesses may exist that have not been identified.



241

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the County’s financial statements are free ofmaterial misstatements, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters thatare required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness of theentity’s internal control or on compliance. This report is an integral part of an audit performed inaccordance with Government Auditing Standards in considering the entity’s internal control andcompliance. Accordingly, this communication is not suitable for any other purpose.


242

INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES


We have examined St. Johns County, Florida’s (the “County”) compliance with the requirements ofSection 218.415, Florida Statutes, Local Government Investment Policies, during the year endedSeptember 30, 2016. Management is responsible for the County’s compliance with the specifiedrequirements. Our responsibility is to express an opinion on the County’s compliance with the specifiedrequirements based on our examination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants. Those standards require that we plan and perform theexamination to obtain reasonable assurance about whether the County complied, in all materialrespects, with the specified requirements referenced above. An examination involves performingprocedures to obtain evidence about whether the County complied with the specified requirements.The nature, timing, and extent of the procedures selected depend on our judgment, including anassessment of the risks of material noncompliance, whether due to fraud or error. We believe that theevidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Our examination does not provide a legal determination on the County’s compliance with specifiedrequirements.

In our opinion, the County complied, in all material respects, with the aforementioned requirements forthe year ended September 30, 2016.

This report is intended solely for the information and use of management and the State of FloridaAuditor General and is not intended to be and should not be used by anyone other than these specifiedparties.




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INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTIONS 365.172(10) AND365.173(2)(d), FLORIDA STATUTES


We have examined St. Johns County, Florida’s (the County) compliance with the requirements of Section365.172(10), Florida Statutes, Authorized Expenditures of E911 Fee, and Section 365.173(2)(d), FloridaStatutes, Distribution and Use of (E911) Funds, during the year ended September 30, 2016. Managementis responsible for the County’s compliance with the specified requirements. Our responsibility is toexpress an opinion on the County’s compliance with the specified requirements based on ourexamination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants. Those standards require that we plan and perform theexamination to obtain reasonable assurance about whether the County complied, in all materialrespects, with the specified requirements referenced above. An examination involves performingprocedures to obtain evidence about whether the County complied with the specified requirements.The nature, timing, and extent of the procedures selected depend on our judgment, including anassessment of the risks of material noncompliance, whether due to fraud or error. We believe that theevidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Our examination does not provide a legal determination on the County’s compliance with specifiedrequirements.

In our opinion, the County complied, in all material respects, with the aforementioned requirements forthe year ended September 30, 2016.






Summary Schedule of Prior Audit Findings(Relative to Federal Programs and State Projects)


244

There were no audit findings contained in the 2015 audit report.

MANAGEMENT LETTER

245


We have audited the financial statements of St. Johns County, Florida (the “County”), as of and for thefiscal year ended September 30, 2016, and have issued our report thereon dated September 20, 2017.We have also issued reports on internal control and on compliance and other matters, and single auditreports. Those reports should be considered in conjunction with this management letter.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America, the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements of Federal Awards (Uniform Guidance). Additionally, our audit was conducted inaccordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern theconduct of local governmental entity audits performed in the State of Florida and require that certainitems be addressed in this letter.

Prior Audit Findings

The Rules of the Auditor General require that we comment as to whether or not corrective actions havebeen taken to address findings and recommendations made in the preceding audit. If the audit findingsin the preceding audit report are uncorrected, we are required to identify those findings that were alsoincluded in the second preceding audit report. The County has no uncorrected prior audit findings thatare required to be identified pursuant to the Rules of the Auditor General.

Financial Condition

As required by the Rules of the Auditor General, the scope of our audit included a review of theprovisions of Section 218.503, Florida Statutes, "Determination of Financial Emergency." In connectionwith our audit, we determined that the County has not met one or more of the conditions described inSection 218.503(1), Florida Statutes, that are indicative of a state of financial emergency.

Also, as required by the Rules of the Auditor General, we applied financial condition assessmentprocedures, as of the end of the fiscal year, pursuant to Rule 10.556(8). It is management’s responsibilityto monitor financial condition, and our financial condition assessment was based in part onrepresentations made by management and the review of financial information provided bymanagement. The application of such procedures did not reveal evidence of “deteriorating financialcondition” as that term is defined in Rule 10.554.



246

Annual Financial Report

As required by the Rules of the Auditor General, we determined that the annual financial report for thefiscal year ended September 30, 2016, filed with the Department of Financial Services pursuant toSection 218.32, Florida Statutes, is in substantial agreement with the audit report for the fiscal yearended September 30, 2016.

Other Matters

As required by the Rules of the Auditor General, we performed separate audits of each of the County’sconstitutional officers. The comments, if any, included in those separately issued reports should beconsidered in conjunction with this management letter.

This management letter is intended solely for the information and use of the Board of CountyCommissioners and management, and the State of Florida Auditor General and is not intended to be andshould not be used by anyone other than these specified parties.

We wish to take this opportunity to thank you and your staff for the cooperation and courtesiesextended to us during the course of the audit. Please let us know if you have any questions or commentsconcerning this letter, our accompanying reports, or other matters.


concerning this letter, our accompanying reports, or othe

Gainesville, Floriddaa

St. Johns County

Clerk of the Circuit Court

and Comptroller Audit Report

September 30, 2016

St. Johns County Clerk of the Circuit Court and Comptroller Table of Contents

September 30, 2016

Page

Independent Auditor's Report 1

Special Purpose Financial Statements

Governmental Funds:

Balance Sheet 3

Statement of Revenues, Expenditures and Changes in Fund Balances 4

Fiduciary Funds:

Statement of Fiduciary Net Position 5

Notes to Financial Statements 6


Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund 11

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Court Modernization Fund 12

Schedule of Revenues, Expenditures and Changes in Fund Balances – Records Modernization Trust Fund 13


Combining Balance Sheet – Nonmajor Governmental Funds 14

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 15

Additional Elements Required by the Rules of the Auditor General


Independent Auditor’s 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 17

Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes 19

St. Johns County Clerk of the Circuit Court and Comptroller Table of Contents

September 30, 2016

Page

Independent Accountant’s Report on Compliance with Sections 28.35 and 28.36, Florida Statutes 20

Independent Accountant’s Report on Compliance with Section 61.181, Florida Statutes 21

Elected Official’s Response to Auditor’s Comments

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The Honorable Hunter S. Conrad Clerk of the Circuit Court and Comptroller St. Johns County, Florida


We have audited the accompanying financial statements of each major fund and the aggregate remaining fund information of the office of the St. Johns County Clerk the Circuit Court and Comptroller (the “Office”) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Office’s special purpose financial statements as listed in the table of contents.


Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.


Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund and the aggregate remaining fund information of the Office as of September 30, 2016, and the respective changes in financial position, where applicable, thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Carr, Riggs & Ingram, LLC1301 Plantation Island DriveSuite 205ASt. Augustine, Florida 32080


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Emphasis of Matter

We draw attention to Note 1 to the financial statements, which describes that the accompanying financial statements were prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida. In conformity with the Rules, the accompanying financial statements are special purpose financial statements that do not constitute a complete presentation, but otherwise constitute financial statements prepared in accordance with generally accepted accounting principles. Our opinions are not modified with respect to this matter.

Other Matters


Accounting principles generally accepted in the United States of America require that the budgetary comparison information be presented to supplement the special purpose financial statements. Such information, although not a part of the special purpose financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the special purpose financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the special purpose financial statements, and other knowledge we obtained during our audit of the special purpose financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Office’s special purpose financial statements. The supplementary information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the special purpose financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the special purpose financial statements. The information has been subjected to the auditing procedures applied in the audit of the special purpose financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the special purpose financial statements or to the special purpose 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 special purpose financial statements as a whole.


In accordance with Government Auditing Standards, we have also issued our report dated March 8, 2017 on our consideration of the Office’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 in considering the Office’s internal control over financial reporting and compliance.

St. Augustine, Florida March 8, 2017

St. Johns County Clerk of the Circuit Court and ComptrollerBalance Sheet - Governmental Funds

September 30, 2016

Records Other TotalGeneral Court Modernization Governmental Governmental

Fund Modernization Trust Fund Funds Funds

AssetsEquity in pooled cash and equivalents 1,564,558$ 862,574$ 733,841$ 86,177$ 3,247,150$Due from other county agencies 2,667 - - - 2,667 Due from other governments 170 - - 33,757 33,927 Accounts receivable - 7,429 - - 7,429

Total assets 1,567,395$ 870,003$ 733,841$ 119,934$ 3,291,173$

Liabilities and fund balancesLiabilities:

Accounts payable and accrued liabilities 201,689$ 22,050$ -$ 7,246$ 230,985$ Due to Individuals 9,436 - - - 9,436 Due to other county agencies 945,557 1,896 - 1,966 949,419 Due to other governments 410,713 - - - 410,713

Total liabilities 1,567,395 23,946 - 9,212 1,600,553

Fund balances:Restricted - 846,057 733,841 110,722 1,690,620

Total liabilities and fund balances 1,567,395$ 870,003$ 733,841$ 119,934$ 3,291,173$

See accompanying notes.

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St. Johns County Clerk of the Circuit Court and ComptrollerStatement of Revenues, Expenditures and Changes in Fund Balances

Governmental FundsYear Ended September 30, 2016

Records Other TotalGeneral Court Modernization Governmental Governmental

Fund Modernization Trust Fund Funds Funds

RevenuesIntergovernmental revenues 231,916$ -$ -$ 167,795$ 399,711$ Charges for services 2,574,019 608,659 191,723 50,095 3,424,496 Fines and forfeitures 2,368,345 - 131,529 - 2,499,874 Investment income (loss) 7,313 2,198 3,135 206 12,852 Miscellaneous revenue 5,564 - - - 5,564

Total revenues 5,187,157 610,857 326,387 218,096 6,342,497


General government services:Personal services 2,693,287 - - - 2,693,287 Operating expenditures 286,494 - 89,334 - 375,828 Capital outlay 20,357 - 23,542 - 43,899

Court related:Personal services 3,504,155 153,631 - 175,381 3,833,167 Operating expenditures 158,197 174,595 - 8,422 341,214 Capital outlay - 66,899 - - 66,899

Total expenditures 6,662,490 395,125 112,876 183,803 7,354,294

Excess of revenues over(under) expenditures (1,475,333) 215,732 213,511 34,293 (1,011,797)

Other financing sources (uses)Transfer to/from funds 470,000 - (470,000) - - Appropriation from Board of County

Commissioners 2,051,500 - - - 2,051,500 Reversion to Board of County

Commissioners (903,636) - - - (903,636) Reversion to Clerks of Court Trust Fund (142,531) - - - (142,531)

Total other financing sources (uses) 1,475,333 - (470,000) - 1,005,333

Net change in fund balances - 215,732 (256,489) 34,293 (6,464)

Fund balances - October 1, 2015 - 630,325 990,330 76,429 1,697,084

Fund balances - September 30, 2016 - 846,057$ 733,841$ 110,722$ 1,690,620$


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St. Johns County Clerk of the Circuit Court and ComptrollerStatement of Fiduciary Net Position

September 30, 2016

AgencyFund

AssetsEquity in pooled cash and equivalents 6,873,606$ Accounts receivable 7,239

Total assets 6,880,845

LiabilitiesAssets held for others 6,732,278 Due to other county agencies 148,567

Total liabilities 6,880,845

Net position -$


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St. Johns County Clerk of the Circuit Court and Comptroller Notes to Financial Statements

September 30, 2016

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the office of the St. Johns County Clerk of the Circuit Court and Comptroller (the “Office”) conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies.

Reporting Entity

The Clerk of the Circuit Court is an elected constitutional officer, whose office is established by Article VIII of the Constitution of the State of Florida and is governed by various provisions of state law.

The Office is an integral part of St. Johns County (the “County”), which is the primary government for financial reporting purposes.

Basis of Presentation

The Office’s financial statements are special purpose financial statements that have been prepared solely for the purpose of complying with the Rules of the Auditor General of the State of Florida (the “Rules”). These special purpose financial statements are the fund financial statements required by generally accepted accounting principles. However, these fund financial statements do not constitute a complete presentation because, in conformity with the Rules, the Office has not presented the government-wide financial statements, the reconciliations to the government-wide financial statements or management’s discussion and analysis. Also, certain notes to the financial statements may supplement rather than duplicate the notes included in the County’s countywide financial statements.

Fund Accounting

Accounts are organized on the basis of funds, each of which is considered 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. Government 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. The focus of fund financial statements is on major funds, each displayed in a separate column. All nonmajor funds are aggregated and displayed in a single column.

The Office reports the following major governmental funds:

General Fund – The General Fund is the primary operating fund. It is used to account for and report all financial resources not accounted for and reported in another fund.

Court Modernization Fund – This fund is primarily used to account for and report additional service charges collected and associated expenditures used exclusively to fund the court-related technology needs of the Office.

Records Modernization Trust Fund – This fund is primarily used to account for and report the additional service charges required by Section 28.24, Florida Statutes, used exclusively to modernize the public records system of the Office. The fund also accounts for the 10 percent of fines retained by the Office as required by Section 28.37(2), Florida Statutes. These funds are used solely for court-related operations and program enhancements.


September 30, 2016

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NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The Office reports the following nonmajor funds:

Title IV D Fund – This fund is used to primarily account for and report Title IV D costs and related federal reimbursement.

Teen Court Fund – This fund is primarily used to account for and report the fines, surcharges and associated expenditures of the operations of Teen Court.

The Office also reports the following fiduciary fund:

Agency Fund - The Agency Fund is primarily used to account for and report resources held in a custodial capacity.

Measurement Focus/Basis of Accounting

All governmental funds are accounted for on a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Their operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets and, accordingly, are said to present a summary of sources and uses of "available spendable resources" during a period.

Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied.

All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. However, principal and interest on long-term debt are recognized when due.

Agency fund assets and liabilities are accounted for on the accrual basis of accounting.

Capital Assets and Long-Term Liabilities

Capital assets used by the Office are recorded and accounted for by the St. Johns County Board of County Commissioners.

Because of their spending measurement focus, expenditure recognition for governmental fund types is limited to exclude 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. They are instead reported as liabilities in the financial statements of the County.

Equity in Pooled Cash and Equivalents

The Office maintains a cash and cash equivalents pool that is available for use by all funds. Each fund’s portion of this pool is displayed on the balance sheet as “Equity in Pooled Cash and Equivalents.” If a fund overdraws its account in the pool, a liability and corresponding receivable (i.e., due to/from other funds) are reported on the balance sheet.


September 30, 2016

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Investments in State Pool and FLGIT

The Office has adopted an investment policy pursuant to Section 218.415, Florida Statutes, which allows for surplus funds to be invested in the Local Government Investment Pool (the “State Pool”) or any intergovernmental investment pool (such as “FLGIT”); Securities and Exchange Commission registered money market funds; certificates of deposits and savings accounts in state-certified qualified public depositories; and direct obligations of the U.S. Treasury.

The Office has funds invested in the State Pool’s PRIME Fund. The State Pool is administered by the Florida State Board of Administration (“SBA”), who provides regulatory oversight. The Florida PRIME has adopted operating procedures consistent with GASB’s requirements to measure its investments at amortized cost. Therefore, the Office’s investment in the Florida PRIME is reported at amortized cost. The fair value of the position in the pool is equal to the value of the pool shares. As of September 30, 2016, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100% of their account value.

The Office has funds invested in the Florida Local Government Trust’s (“FLGIT”) Day-to-Day Fund. FLGIT is administered by the Florida Clerk of Courts and Comptrollers Association and the Florida Association of Counties. The office’s investment in the Day-to-Day Trust is reported at amortized cost. The fair value of the position in the pool is equal to the value of the pool shares.

Fund Balance

The Office follows the provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions to classify fund balances for governmental funds into specifically defined classifications. The classifications comprise a hierarchy based primarily on the extent to which the Office is bound to honor constraints on the specific purposes for which amounts in the funds can be spent.

Fund balance classifications are described below:

Nonspendable Fund Balance – Nonspendable fund balances are amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted Fund Balance – Restricted fund balances are restricted when constraints placed on the use of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – Committed fund balances are amounts that can only be used for specific purposes as a result of constraints imposed by formal action of the Office’s highest level of decision-making authority, which is a policy of the Office. Committed amounts cannot be used for any other purpose unless the Office removes those constraints by taking the same type of action.


September 30, 2016

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Assigned Fund Balance – Assigned fund balances are amounts that are constrained by the Office’s intent to be used for specific purposes, but are neither restricted nor committed. Intent is expressed by (a) the constitutional officer or (b) a body or official to which the constitutional officer has delegated the authority to assign amounts used for specific purposes.

Unassigned Fund Balance – Unassigned fund balance is the residual classification for the General Fund and the negative residual amount in other funds.

The Office’s policy is to expend resources in the following order: restricted, committed, assigned, and unassigned.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make various estimates. Actual results could differ from those estimates.

NOTE 2 – FUND BALANCE CLASSIFICATIONS

Balances of reported fund balance at September 30, 2016 are as follows:

Court RecordsModernization Modernization Other

Fund Trust Fund Funds Total

Restricted for:Court operations -$ 64,900$ 110,722$ 175,622$ Court technology

modernization 846,057 - - 846,057 Records modernization - 668,941 - 668,941

Total fund balances 846,057$ 733,841$ 110,722$ 1,690,620$

NOTE 3 – DEPOSITS AND INVESTMENTS

Deposits

All deposits of the Office are placed in a bank that qualifies as a public depository pursuant to the provisions of the Florida Security For Public Deposits Act. Every qualified public depository is required by this law to deposit with the Chief Financial Officer eligible collateral equal to, or in excess of, an amount to be determined by the Chief Financial Officer. The Chief Financial Officer is required to ensure that all funds are entirely collateralized throughout the fiscal year.


September 30, 2016

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NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)

Investments

At year end, the Office’s investments, included in pooled cash and equivalents in the accompanying financial statements consisted of:

Florida PRIME 161,209$ FLGIT 3,097,013

Total 3,258,222$

The Office’s investments expose it to credit risk and interest rate risks. The Office does not have a formal investment policy relating to these risks, which are hereafter described.

Credit Risk – The risk that an issuer or other counterparty to an investment will not fulfill its obligations.

The Florida PRIME and FLGIT are rated by Standard and Poors and have a rating at September 30, 2016 of AAAm.

Interest Rate Risk – The risk that changes in interest rates will adversely affect the fair value of an investment.

The weighted average maturity (WAM) of the Florida PRIME at September 30, 2016 was 50 days.

The weighted average maturity (WAM) of FLGIT’s Day-to-Day Fund at September 30, 2016 was 52.76 days.

NOTE 4 – RISK MANAGEMENT

For health insurance and worker’s compensation, the Office participates in the risk management program established by the Board of County Commissioners to cover claims against the Board and Constitutional Officers. The risk management program is accounted for in the Board’s financial statements as an Internal Service Fund, in accordance with requirements of GASB 10.

St. Johns County Clerk of the Circuit Court and ComptrollerSchedule of Revenues, Expenditures and Changes in Fund Balances

Budget and Actual - General FundYear Ended September 30, 2016

Budgeted AmountsOriginal Final Actual

RevenuesIntergovernmental revenues 24,950$ 213,730$ 231,916$ Charges for services 2,243,830 2,175,230 2,574,019 Fines and forfeitures 2,575,700 2,337,985 2,368,345 Investment income 2,000 4,500 7,313 Miscellaneous revenue 3,800 3,100 5,564

Total revenues 4,850,280 4,734,545 5,187,157


General government services:Personal services 3,026,360 2,958,860 2,693,287 Operating expenditures 458,170 520,470 286,494 Capital outlay 21,000 26,200 20,357

Court Related:Personal services 3,628,780 3,544,455 3,504,155 Operating expenditures 233,470 195,760 158,197 Capital outlay 4,000 10,300 -

Total expenditures 7,371,780 7,256,045 6,662,490

Excess of revenues over (under) expenditures (2,521,500) (2,521,500) (1,475,333)

Other financing sources (uses)Transfers to/from funds 470,000 470,000 470,000 Appropriation from Board of County

Commissioners 2,051,500 2,051,500 2,051,500 Reversion to Board of County Commissioners - - (903,636) Reversion to Clerks of Court Trust Fund - - (142,531)

Total other financing sources (uses) 2,521,500 2,521,500 1,475,333

Net change in fund balances - - -

Fund balances - October 1, 2015 - - -

Fund balances - September 30, 2016 -$ -$ -$

Notes to Schedule:

Pursuant to Section 28.36, Florida Statutes, the budget for court-related functions of the Office issubject to the General Appropriations Act of the Florida Legislature. The budget is prepared on abasis that does not differ materially from generally accepted accounting principles. The State ofFlorida releases this appropriation on a monthly basis. The noncourt-related functions are funded byBoard appropriations and user fees. The fund is the legal level of control.

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St. Johns County Clerk of the Circuit Court and ComptrollerSchedule of Revenues, Expenditures and Changes in Fund Balances

Budget and Actual - Court Modernization FundYear Ended September 30, 2016


RevenuesCharges for services 445,000$ 445,000$ 608,659$ Investment income 50 50 2,198

Total revenues 445,050 445,050 610,857


Court related:Personal services 290,540 274,690 153,631 Operating expenditures 133,150 226,000 174,595 Capital outlay 18,000 70,700 66,899

Total expenditures 441,690 571,390 395,125

Excess of revenue over (under) expenditures 3,360 (126,340) 215,732

Fund balances - October 1, 2015 630,325 630,325 630,325

Fund balances - September 30, 2016 633,685$ 503,985$ 846,057$

Notes to Schedule:The preparation, adoption, and amendment of the budgets is governed by Florida Statutes, and isprepared on a basis that does not differ materially from generally accepted accounting principles. Thefund is the legal level of control.

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St. Johns County Clerk of the Circuit Court and ComptrollerSchedule of Revenues, Expenditures and Changes in Fund Balances - Records Modernization Trust

Year Ended September 30, 2016


RevenuesCharges for services 155,000$ 155,000$ 191,723$ Fines and forfeitures 130,000 130,000 131,529 Investment Income 50 50 3,135

Total revenues 285,050 285,050 326,387


General government services:Operating expenditures 76,000 93,000 89,334 Capital outlay 15,000 24,300 23,542


Excess of revenues over (under) expenditures 194,050 167,750 213,511

Other financing sources (uses)Transfers to/from funds (470,000) (470,000) (470,000)

Net change in fund balances (275,950) (302,250) (256,489)

Fund balances - October 1, 2015 990,330 990,300 990,330


Notes to Schedule:The preparation, adoption, and amendment of the budgets is governed by Florida Statutes, and is preparedon a basis that does not differ materially from generally accepted accounting principles. The fund is thelegal level of control.

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St. Johns County Clerk of the Circuit Court and ComptrollerCombining Balance Sheet

Nonmajor Governmental FundsSeptember 30, 2016

TotalTitle NonmajorIV D Teen GovernmentalFund Court Funds

AssetsEquity in pooled cash and equivalents 40,127$ 46,050$ 86,177$ Due from other governments 33,757 - 33,757

Total assets 73,884$ 46,050$ 119,934$

Liabilities and fund balancesLiabilities:

Accounts payable and accrued liabilities 4,567$ 2,679$ 7,246$ Due to other county agencies 1,491 475 1,966 Total liabilities 6,058 3,154 9,212

Fund balances:Restricted 67,826 42,896 110,722

Total liabilities and fund balances 73,884$ 46,050$ 119,934$

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St. Johns County Clerk of the Circuit Court and ComptrollerCombining Statement of Revenues, Expenditures and Changes in Fund Balances

Nonmajor Governmental FundsYear Ended September 30, 2016

IV D Teen GovernmentalFund Court Funds

RevenuesIntergovernmental 167,795$ -$ 167,795$ Charges for services - 50,095 50,095 Investment income - 206 206

Total revenues 167,795 50,301 218,096

Current:Court related:

Personal services 96,829 78,552 175,381 Operating expenditures 3,140 5,282 8,422


Excess of revenues over (under) expenditures 67,826 (33,533) 34,293

Fund balances - October 1, 2015 - 76,429 76,429


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Additional Elements Required by the Rules of the Auditor General

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MANAGEMENT LETTER

The Honorable Hunter S. ConradClerk of the Circuit Court and Comptroller St. Johns County, Florida

We have audited the financial statements of the office of the St. Johns County Clerk of the Circuit Court and Comptroller (the “Office”), as of and for the year ended September 30, 2016, and have issued our report thereon dated March 8, 2017. That report should be considered in conjunction with this management letter.

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. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter.

Prior Audit Findings The Rules of the Auditor General require that we comment as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding audit. If the audit findings in the preceding audit are uncorrected, we are required to identify those findings that were also included in the second preceding audit report. The Office has no uncorrected prior audit findings that are required to be identified pursuant to the Rules of the Auditor General.

Other Matters

Our audit did not reveal any other matters that we are required to include in this management letter.

The purpose of this management letter is solely to comply with the requirements of Chapter 10.550, Rules of the Auditor General. Accordingly, this communication is not suitable for any other purpose.

We wish to take this opportunity to thank you and your staff for the cooperation and courtesies extended to us during the course of the audit. Please let us know if you have any questions or comments concerning this letter, our accompanying reports, or other matters.




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INDEPENDENT AUDITOR’S 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


We have audited, in accordance with the 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, the financial statements of each major fund and the aggregate remaining fund information of the office of the St. Johns County Clerk of the Circuit Court and Comptroller (the “Office”), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Office’s special purpose financial statements, and have issued our report thereon dated March 8, 2017.

Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Office’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 Office’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Office’s internal control.

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. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.



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Compliance and Other Matters As part of obtaining reasonable assurance about whether the Office’s financial statements are free from 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.

Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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We have examined the office of the St. Johns County Clerk of the Circuit Court and Comptroller’s (the “Office”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2016. Management is responsible for the Office’s compliance with those requirements. Our responsibility is to express an opinion on the Office’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the Office’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Office’s compliance with specified requirements.

In our opinion, the Office complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016.

This report is intended solely for the information and use of management 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 ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTIONS 28.35 AND 28.36, FLORIDA STATUTES


We have examined the office of the St. Johns County Clerk of the Circuit Court and Comptroller’s (the “Office”) compliance with the requirements of Section 28.35, Florida Statutes, Florida Clerks of Court Operations Corporation, and Section 28.36, Florida Statutes, Budget Procedure, during the year ended September 30, 2016. Management is responsible for the Office’s compliance with those requirements. Our responsibility is to express an opinion on the Office’s compliance based on our examination.







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We have examined the office of the St. Johns County Clerk of the Circuit Court and Comptroller’s (the “Office”) compliance with the requirements of Section 61.181, Florida Statutes, Depository for Alimony Transactions, Support, Maintenance, and Support Payments; Fees, during the year ended September 30, 2016. Management is responsible for the Office’s compliance with those requirements. Our responsibility is to express an opinion on the Office’s compliance based on our examination.




St. Augustine Florida March 8, 2017



St. Johns CountyProperty Appraiser

Audit Report

September 30, 2016

St. Johns County Property Appraiser

Table of ContentsSeptember 30, 2016

REPORTIndependent Auditor's Report 1

SPECIAL PURPOSE FINANCIAL STATEMENTSGovernmental Funds:

Balance Sheet 3

Statement of Revenues, Expenditures and Changes in Fund Balance 4


REQUIRED SUPPLEMENTARY INFORMATIONSchedule of Revenues, Expenditures and Changes in Fund Balances – Budget

and Actual – General Fund 8

ADDITIONAL ELEMENTS REQUIRED BY THE RULES OF THE AUDITORGENERAL

Management Letter 9

Independent Auditor’s Report on Internal Control Over Financial Reporting andon Compliance and Other Matters Based on an Audit of Financial StatementsPerformed in Accordance with Government Auditing Standards 10

Independent Accountant’s Report on Compliance with Section 218.415, FloridaStatutes 12

Elected Official's Response to Auditor's Comments 13


1

The Honorable Eddie CreamerProperty AppraiserSt. Johns County, Florida


We have audited the accompanying financial statements of the office of the St. Johns County PropertyAppraiser (the “Office”) as of and for the year ended September 30, 2016, and the related notes to thefinancial statements, which collectively comprise the Office’s special purpose financial statements aslisted in the table of contents.




Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.



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Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Office as of September 30, 2016, and the changes in its financial position for theyear then ended in accordance with accounting principles generally accepted in the United States ofAmerica.

Emphasis of Matter

We draw attention to Note 1 to the financial statements, which describes that the accompanyingfinancial statements were prepared solely for the purpose of complying with the Rules of the AuditorGeneral of the State of Florida. In conformity with the Rules, the accompanying financial statements arespecial purpose financial statements that do not constitute a complete presentation, but otherwiseconstitute financial statements prepared in accordance with generally accepted accounting principles.Our opinion is not modified with respect to this matter.

Other Matters


Accounting principles generally accepted in the United States of America require that the budgetarycomparison information be presented to supplement the special purpose financial statements. Suchinformation, although not a part of the special purpose financial statements, is required by theGovernmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the special purpose financial statements in an appropriate operational, economic,or historical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s responses to our inquiries, the specialpurpose financial statements, and other knowledge we obtained during our audit of the special purposefinancial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion orprovide any assurance.


In accordance with Government Auditing Standards, we have also issued our report dated February 23,2017, on our consideration of the Office’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Office’s internalcontrol over financial reporting and compliance.

St. Augustine, FloridaFebruary 23, 2017

control over financial reporting and compliance.

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Balance Sheet – Governmental FundsAs of September 30, 2016

General

Fund

Assets

Cash 184,976$

Total assets 184,976$

Liabilities and fund balance

Liabilities:

Accounts payable and accrued liabilities 53,280$

Due to other county agencies 131,696

Total liabilities 184,976

Total liabilities and fund balance 184,976$

The accompanying "Notes to Financial Statements"

form an integral part of this statement.

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Statement of Revenues, Expenditures and Changes in Fund BalanceGovernmental Funds


General

FundRevenues

Charges for services 801,144$

Investment income 468

Total revenues 801,612

Expenditures

Current:

General government:

Personal services 4,172,636

Operating expenditures 840,434

Capital outlay 41,567

Total expenditures 5,054,637

Excess of revenues under expenditures (4,253,025)

Other financing sources (uses)

Appropriation from board of county commissioners 4,384,594

Reversion to board of county commissioners (131,569)

Total other financing sources (uses) 4,253,025

Net change in fund balance

Fund balance October 1, 2015

Fund balance September 30, 2016 $

The accompanying "Notes to Financial Statements"

form an integral part of this statement.

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Notes to Financial Statements

5


The accounting policies of the office of the St. Johns County Property Appraiser (the “Office”) conformto generally accepted accounting principles as applicable to governments. The following is a summary ofthe more significant policies.

Reporting Entity

The Property Appraiser is an elected constitutional officer, whose office is established by Article VIII ofthe Constitution of the State of Florida and is governed by various provisions of state law.

The Office is an integral part of St. Johns County, which is the primary government for financial reportingpurposes.


The Office’s financial statements are special purpose financial statements that have been preparedsolely for the purpose of complying with the Rules of the Auditor General of the State of Florida (the“Rules”). These special purpose financial statements are the fund financial statements required bygenerally accepted accounting principles. However, these fund financial statements do not constitute acomplete presentation because, in conformity with the Rules, the Office has not presentedreconciliations to the government wide financial statements, the government wide financialstatements, or management’s discussion and analysis. Also, certain notes to the financial statementsmay supplement rather than duplicate the notes included in the County’s countywide financialstatements.

Fund Accounting

Accounts are organized on the basis of funds, each of which is considered a separate accounting entity.The operations of each fund are accounted for with a separate set of self balancing accounts thatcomprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources areallocated to, and accounted for in, individual funds based upon the purposes for which they are to bespent and the means by which spending activities are controlled. The focus of fund financial statementsis on major funds, each displayed in a separate column. All nonmajor funds are aggregated anddisplayed in a single column.

The Office reports the following major governmental fund:

General Fund the General Fund is the primary operating fund. It is used to account for and reportall financial resources not accounted for and reported in another fund.

Fund Balance

The Office follows the provisions of GASB Statement No. 54, Fund Balance Reporting and GovernmentalFund Type Definitions to classify fund balances for governmental funds into specifically definedclassifications. The classifications comprise a hierarchy based primarily on the extent to which the Officeis bound to honor constraints on the specific purposes for which amounts in the funds can be spent.



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The fund balance classifications specified in GASB Statement No. 54 are as follows:

Nonspendable Fund Balance – Nonspendable fund balances are amounts that cannot be spentbecause they are either (a) not in spendable form or (b) legally or contractually required to bemaintained intact.

Restricted Fund Balance – Restricted fund balances are restricted when constraints placed on theuse of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws orregulations of other governments; or (b) imposed by law through constitutional provisions orenabling legislation.

Committed Fund Balance – Committed fund balances are amounts that can only be used for specificpurposes as a result of constraints imposed by formal action of the Office’s highest level ofdecision making authority, which is a policy of the Office. Committed amounts cannot be used forany other purpose unless the Office removes those constraints by taking the same type of action.

Assigned Fund Balance – Assigned fund balances are amounts that are constrained by the Office’sintent to be used for specific purposes, but are neither restricted nor committed. Intent is expressedby (a) the constitutional officer or (b) a body or official to which the constitutional officer hasdelegated the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance – Unassigned fund balance is the residual classification for the GeneralFund.

The Office’s policy is to expend resources in the following order: restricted, committed, assigned, andunassigned.


All governmental funds are accounted for on a current financial resources measurement focus. Thismeans that only current assets and current liabilities are generally included on their balance sheets.Their reported fund balance (net current assets) is considered a measure of "available spendableresources." Their operating statements present increases (revenues and other financing sources) anddecreases (expenditures and other financing uses) in net current assets and, accordingly, are said topresent a summary of sources and uses of "available spendable resources" during a period.

Basis of accounting refers to when revenues and expenditures are recognized in the accounts andreported in the financial statements. Basis of accounting relates to the timing of the measurementsmade, regardless of the measurement focus applied.

All governmental funds are accounted for using the modified accrual basis of accounting. Their revenuesare recognized when they become measurable and available as net current assets. Expenditures aregenerally recognized under the modified accrual basis of accounting when the related fund liability isincurred. However, principal and interest on long term debt are recognized when due.



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Capital Assets and Long Term Liabilities

Capital assets used by the Office are recorded and accounted for by the St. Johns County Board ofCounty Commissioners.

Because of their spending measurement focus, expenditure recognition for governmental fund types islimited to exclude amounts represented by noncurrent liabilities. Since they do not affect net currentassets, such long term amounts are not recognized as governmental fund type expenditures or fundliabilities. They are instead reported as liabilities in the financial statements of the County.

Cash

Cash is placed in a bank that qualifies as a public depository pursuant to the provisions of the FloridaSecurity For Public Deposits Act. Every qualified public depository is required by this law to deposit withthe Chief Financial Officer eligible collateral equal to, or in excess of, an amount to be determined by theChief Financial Officer. The Chief Financial Officer is required to ensure that all funds are entirelycollateralized throughout the fiscal year.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted inthe United States requires management to make various estimates. Actual results could differ fromthose estimates.


For health insurance and worker’s compensation, the Office participates in the risk managementprogram established by the Board of County Commissioners to cover claims against the Board andConstitutional Officers. The risk management program is accounted for in the Board’s financialstatements as an Internal Service Fund, in accordance with requirements of GASB 10.

NOTE 3 – CONTINGENCIES

The Office is, during the course of normal operations, involved in various claims regarding theassessments of real and tangible personal property. It is the opinion of management that any uninsuredclaims would not be material in relation to the Office’s financial condition.


Schedule of Revenues, Expenditures and Changes in Fund Balances

Budget and Actual – General Fund


Budgeted Amounts

Original Final Actual

Revenues

Charges for services 791,425$ 791,425$ 801,144$

Investment income 468

Total revenues 791,425 791,425 801,612

Expenditures

Current:

General government:

Personal services 4,249,810 4,249,810 4,172,636

Operating expenditures 872,909 864,909 840,434

Capital outlay 53,300 61,300 41,567


Excess of revenues under expenditures (4,384,594) (4,384,594) (4,253,025)


Appropriation from board of county commissioners 4,384,594 4,384,594 4,384,594




Fund balances October 1, 2015

Fund balances September 30, 2016 $ $ $

Notes to schedule:

The budget is prepared on a basis that does not differ materially from generally accepted accounting

principles. Its preparation, adoption, and amendment is governed by Florida Statutes. The fund is the legal

level of control.

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Additional Elements Required by theRules of the Auditor General

MANAGEMENT LETTER

9


We have audited the financial statements of the office of the St. Johns County Property Appraiser (the“Office”), as of and for the year ended September 30, 2016, and have issued our report thereon datedFebruary 23, 2017. That report should be considered in conjunction with this management letter.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards, issued by the Comptroller General of the United States. Additionally, our audit wasconducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, whichgovern the conduct of local governmental entity audits performed in the State of Florida and requirethat certain items be addressed in this letter.


The Rules of the Auditor General require that we comment as to whether or not corrective actions havebeen taken to address findings and recommendations made in the preceding audit. If the audit findingsin the preceding audit are uncorrected, we are required to identify those findings that were alsoincluded in the second preceding audit report. The Office has no uncorrected prior audit findings thatare required to be identified pursuant to the Rules of the Auditor General.

Other Matters


The purpose of this management letter is solely to comply with the requirements of Chapter 10.550,Rules of the Auditor General. Accordingly, this communication is not suitable for any other purpose.





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We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the office of the St.Johns County Property Appraiser (the “Office”), as of and for the year ended September 30, 2016, andthe related notes to the financial statements, which collectively comprise the Office’s special purposefinancial statements, and have issued our report thereon dated February 23, 2017.


In planning and performing our audit of the financial statements, we considered the Office’s internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinion on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Office’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Office’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct, misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detected and corrected on atimely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal controlthat is less severe than a material weakness, yet important enough to merit attention by those chargedwith governance.




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As part of obtaining reasonable assurance about whether the Office’s financial statements are free frommaterial misstatement, we performed tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements, noncompliance with which could have a direct andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit, and accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters thatare required to be reported under Government Auditing Standards.




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We have examined the St. Johns County Property Appraiser’s (the “Office”) compliance with therequirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during theyear ended September 30, 2016. Management is responsible for the Office’s compliance with thoserequirements. Our responsibility is to express an opinion on the Office’s compliance based on ourexamination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Office’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonablebasis for our opinion. Our examination does not provide a legal determination on the Office’scompliance with specified requirements.

In our opinion, the Office complied, in all material respects, with the aforementioned requirements forthe year ended September 30, 2016.





St. Johns County Sheriff

Audit Report

September 30, 2016





Balance Sheet 4

Statement of Revenues, Expenditures and Changes in Fund Balances 5

Fiduciary Funds:





Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetand Actual – Canteen Fund 13

Schedule of Revenues, Expenditures and Changes in Fund Balances – Budgetand Actual – HIDTA Fund 14

SUPPLEMENTARY INFORMATIONCombining Balance Sheet – Nonmajor Governmental Funds 15

Combining Statement of Revenues, Expenditures and Changes in Fund Balances– Nonmajor Governmental Funds 16

Combining Statement of Fiduciary Net Position – Agency Funds 17





Elected Official's Response to Auditor's Comments

1


The Honorable David B. ShoarSheriffSt. Johns County, Florida


We have audited the accompanying financial statements of each major fund and the aggregateremaining fund information of the office of the St. Johns County Sheriff (the “Office”) as of and for theyear ended September 30, 2016, and the related notes to the financial statements, which collectivelycomprise the Office’s special purpose financial statements as listed in the table of contents.




Our responsibility is to express opinions on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.





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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of each major fund and the aggregate remaining fund information of theOffice as of September 30, 2016, and the respective changes in financial position, where applicable,thereof for the year then ended in accordance with accounting principles generally accepted in theUnited States of America.

Emphasis of Matter

We draw attention to Note 1 to the financial statements, which describes that the accompanyingfinancial statements were prepared solely for the purpose of complying with the Rules of the AuditorGeneral of the State of Florida. In conformity with the Rules, the accompanying financial statements arespecial purpose financial statements that do not constitute a complete presentation, but otherwiseconstitute financial statements prepared in accordance with generally accepted accounting principles.Our opinions are not modified with respect to this matter.

Other Matters



Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the Office’s special purpose financial statements. The supplementary informationlisted in the table of contents is presented for purposes of additional analysis and is not a required partof the special purpose financial statements. Such information is the responsibility of management andwas derived from and relates directly to the underlying accounting and other records used to preparethe special purpose financial statements. The information has been subjected to the auditingprocedures applied in the audit of the special purpose financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlying accountingand other records used to prepare the special purpose financial statements or to the special purposefinancial statements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America. In our opinion, the information is fairly stated in allmaterial respects in relation to the special purpose financial statements as a whole.

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In accordance with Government Auditing Standards, we have also issued our report dated April 19,2017, on our consideration of the Office’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Office’s internalcontrol over financial reporting and compliance.

St. Augustine, FloridaApril 19, 2017

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Balance Sheet – Governmental FundsSeptember 30, 2016


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Other Tota l

Genera l Canteen HIDTA Governmenta l Governmenta l

Fund Fund Fund Funds Funds

Assets

Equity in pooled cash and equiva lents 892,779$ $ $ 212,784$ 1,105,563$

Cash 506,089 257,909 763,998

Due from other funds 257,743 1,888 259,631

Due from other county agencies 331,264 331,264

Due from other governments 63,690 318,500 382,190

Receivables 15,408 37,973 6,979 60,360

Tota l assets 2,066,973$ 297,770$ 318,500$ 219,763$ 2,903,006$

Liabilities and fund balances

Liabi l i ties :

Accounts payable and

accrued l iabi l i ties 1,957,821$ $ 77,004$ 5,072$ 2,039,897$

Due to other funds 8,375 241,496 2,177 252,048

Due to other county agencies 109,152 109,152

Unearned revenue 35,629 35,629

Tota l l iabi l i ties 2,066,973 8,375 318,500 42,878 2,436,726

Fund balances :

Restricted 176,885 176,885

Committed 281,671 281,671

Ass igned 7,724 7,724

Tota l fund balances 289,395 176,885 466,280

Tota l l iabi l i ties and

fund balances 2,066,973$ 297,770$ 318,500$ 219,763$ 2,903,006$


Statement of Revenues, Expenditures and Changes in Fund BalancesYear ended September 30, 2016


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Other Tota l

Genera l Canteen HIDTA Governmenta l Governmental

Fund Fund Fund Funds Funds

Revenues

Licenses and permits $ $ $ 167,573$ 167,573$

Intergovernmental 132,186 3,148,646 38,709 3,319,541

Charges for services 1,170,471 304,322 1,474,793

Investment income 902 902

Miscel laneous 784,931 46 784,977

Tota l revenues 2,087,588 304,368 3,148,646 207,184 5,747,786

Expenditures

Current:

Publ ic safety:

Persona l services 51,059,720 110,675 780,003 165,074 52,115,472

Operating expenditures 10,934,357 136,729 2,356,653 139,192 13,566,931

Capita l outlay 2,911,411 11,990 15,066 2,938,467

Court related:

Persona l services 1,640,578 1,640,578

Operating expenditures 42,054 42,054

Capita l outlay 1,507 1,507

Debt service:

Principa l 1,417,278 1,417,278

Interest 35,481 35,481

Tota l expenditures 68,042,386 247,404 3,148,646 319,332 71,757,768

Excess of revenues over

(under) expenditures (65,954,798) 56,964 (112,148) (66,009,982)

Other financing sources

(uses)

Capita l lease 1,361,807 1,361,807

Transfers in 19,189 19,189

Transfers out (19,189) (19,189)

Appropriation from board of

county commiss ioners 64,649,168 64,649,168

Revers ion to board of county

commiss ioners (36,988) (36,988)

Tota l other financing

sources (uses) 65,954,798 19,189 65,973,987

Net change in fund balances 56,964 (92,959) (35,995)

Fund balances

October 1, 2015 232,431 269,844 502,275

Fund balances

September 30, 2016 $ 289,395$ $ 176,885$ 466,280$


Statement of Fiduciary Net PositionSeptember 30, 2016


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Agency

Funds

Assets

Equity in pooled cash and equivalents 8,821$

Cash 39,295

Due from other governments 680

Total assets 48,796

Liabilities

Assets held for others 28,961

Due to other funds 7,583

Due to county agencies 12,252


Net position $



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The accounting policies of the office of the St. Johns County Sheriff (the “Office”) conform to generallyaccepted accounting principles as applicable to governments. The following is a summary of the moresignificant policies.

Reporting Entity

The Sheriff is an elected constitutional officer, whose office is established by Article VIII of theConstitution of the State of Florida and is governed by various provisions of state law.




Fund Accounting


The Office reports the following major governmental funds:

General Fund – the General Fund is the primary operating fund. It is used to account for and reportall financial resources not accounted for and reported in another fund.

Canteen Fund – This fund is used to account for the operations of the St. Johns County DetentionFacility’s commissary. Revenues are provided by sale of products, through a third party provider, tothe inmates, and profits can only be spent for the benefit of the inmates and other miscellaneousrevenue.

HIDTA Fund – This fund is used to account for revenues and expenditures of the High Intensity DrugTrafficking Area Grant.



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The Office reports the following nonmajor governmental funds:

Equitable Sharing Proceeds Fund – This fund is used to account for the revenues and expenditures ofthe proceeds from federal forfeitures.

NET Fund – This fund is used to account for the operations of a multi jurisdictional law enforcementtask force.

Alarm Ordinance Fund – This fund is used to account for the permitting of alarms and associatedexpenditures.

The Office also reports the following fiduciary fund:

Agency Funds – The Agency Funds are used to account for resources held in a custodial capacity.

Fund Balance









9










Because of the current financial resources measurement focus, the accompanying fund financialstatements do not report capital assets or long term liabilities. Such amounts are instead reported in thegovernment wide financial statements of the County.


The Office maintains a cash and equivalents pool that is available for use by all funds. Each fund’sportion of this pool is displayed on the balance sheet as “Equity in Pooled Cash and Equivalents.” If afund overdraws its account in the pool, a liability and corresponding receivable (i.e., due to/from otherfunds) are reported on the balance sheet.

Investments

The Office has adopted an investment policy pursuant to Section 218.415, Florida Statutes, which allowsfor surplus funds to be invested in the Local Government Surplus Funds Trust fund (the “State Pool”) orany intergovernmental investment pool; Securities and Exchange Commission registered money marketfunds; certificates of deposits and savings accounts in state certified qualified public depositories anddirect obligations of the U.S. Treasury.



10


The Office invests surplus funds in the State Pool. The State Pool is administered by the Florida StateBoard of Administration, who provides regulatory oversight.

Florida PRIME is an external investment pool that meets all of the necessary criteria to elect to measureall of the investments in Florida PRIME at amortized cost. Therefore, the Office’s investment in FloridaPRIME is reported at amortized cost. The fair value of the position in the pool is equal to the value ofthe pool shares. As of September 30, 2016, there were not redemption fees or maximum transactionamounts, or any other requirements that serve to limit a participant’s daily access to 100 percent oftheir account value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make various estimates. Actual results could differ from those estimates.


Deposits

All deposits of the Office are placed in a bank that qualifies as a public depository pursuant to theprovisions of the Florida Security for Public Deposits Act. Every qualified public depository is required bythis law to deposit with the Chief Financial Officer eligible collateral equal to, or in excess of, an amountto be determined by the Chief Financial Officer. The Chief Financial Officer is required to ensure that allfunds are entirely collateralized throughout the fiscal year.

Investment in State Pool

At year end, the Office had investments in the State Pool as summarized below:

General fund 616,621

Other governmental funds 212,784

Total 829,405$

The Office’s investment in the State Pool exposes it to credit risk, defined as the risk that an issuer orother counterparty to an investment will not fulfill its obligations. The Office does not have a formal



11


investment policy relating to that risk. The State Pool is rated by Standard and Poor’s and has a rating ofAAAm at September 30, 2016.

The following represents a reconciliation of the Office’s Equity in Pooled Cash and Equivalents in theaccompanying financial statements:

Equity in

Investments Pooled Cash

Deposits State Pool & EquivalentsGeneral fund 276,158 616,621 892,779$

Other governmental funds 212,784 212,784

Agency fund 8,821 8,821

Totals 284,979$ 829,405$ 1,114,384$

NOTE 3 – 401(a) DEFINED CONTRIBUTION PLAN

The Office also offers a qualified contribution plan, 401(a) Plan, which is a discretionary contributionplan. All full time employees of the Office who have completed twelve (12) months of service areeligible to participate. The Office may make matching contributions in proportion to participant’selective deferrals to the Office’s Section 457 plan. Contributions will be made equal to a discretionarypercentage to be determined by the Office from year to year. In fiscal 2016, the Office contributedapproximately $672,000 to the plan.

NOTE 4 – INTERFUND BALANCES

The following interfund balances arose through the normal course of operations.

Other Funds Other Funds

Major funds:

General fund 257,743$ $

HIDTA fund 241,496

Canteen fund 1,888 8,375

Other governmental funds:

Alarm ordinance fund 2,177

Agency fund 7,583

Totals 259,631$ 259,631$



12


For health insurance, the Office participates in the risk management program established by the Boardof County Commissioners to cover claims against the Board and Constitutional Officers. The riskmanagement program is accounted for in the Board’s financial statements as an Internal Service Fund,in accordance with requirements of GASB 10.

The Office also participates in external public entity self insurance pools for risks related to professionalliability, workers’ compensation, and certain tangible property. For the past three years, there havebeen no insurance settlements significantly in excess of insurance coverage.

NOTE 6 – CONTINGENCIES

The Office is contingently liable with respect to lawsuits and other claims incidental to the ordinarycourse of its operations. In the opinion of management, based on the advice of legal counsel, theultimate disposition of these lawsuits and claims will not have a material adverse effect on the financialcondition of the Office.


Schedule of Revenues, Expenditures and Changes in Fund BalancesBudget and Actual – General FundYear ended September 30, 2016

13

Budgeted Amounts


Revenues

Intergovernmental $ 132,189$ 132,186$

Charges for services 1,170,472 1,170,471

Miscellaneous 785,107 784,931

Total revenues 2,087,768 2,087,588

Expenditures

Current:

Public safety:


Operating expenditures 11,412,225 11,103,100 10,934,357

Capital outlay 1,043,129 2,817,284 2,911,411

Court related:



Capital outlay 1,510 1,507

Debt service:

Principal 1,384,842 1,397,783 1,417,278

Interest 41,532 36,537 35,481


Excess of revenues under

expenditures (64,222,985) (66,010,797) (65,954,798)


Capital lease 1,361,807 1,361,807

Transfers out (19,189)

Appropriation from Board of

County Commissioners 64,222,985 64,648,990 64,649,168

Reversion to Board of County Commissioners (36,988)

Total other financing

sources (uses) 64,222,985 66,010,797 65,954,798




Notes to schedule:


principles. Its preparation, adoption, and amendment is governed by Florida Statutes. The fund is the

legal level of control.


Schedule of Revenues, Expenditures and Changes in Fund BalancesBudget and Actual – Canteen Fund


14

Budgeted Amounts


Revenues


Miscellaneous 1,000 1,000 46

Total revenues 226,000 226,000 304,368

Expenditures

Current:

Public safety:

Personal services 106,000 106,000 110,675


Capital Outlay 206,513 206,513

Total Expenditures 477,113 477,113 247,404

Excess of revenues over (under)

expenditures (251,113) (251,113) 56,964

Fund balances October 1, 2015 251,113 251,113 232,431

Fund balances September 30, 2016 $ $ 289,395$

Notes to schedule:

The budget is prepared on a basis that does not differ materially from generally accepted

accounting principles. Its preparation, adoption and amendment is governed by Florida

Statutes. The fund is the legal level of control.


Schedule of Revenues, Expenditures and Changes in Fund BalancesBudget and Actual – HIDTA FundYear ended September 30, 2016

15


RevenuesIntergovernmental $ 3,135,210$ 3,148,646$


Public safety:Personal services 780,004 780,003Operating expenditures 2,140,206 2,356,653Capital outlay 215,000 11,990

Total expenditures 3,135,210 3,148,646

Excess of revenues over (under)expenditures



Notes to schedule:


accounting principles. Its preparation, adoption, and amendment is governed by Florida



Combining Balance Sheet – Nonmajor Governmental FundsSeptember 30, 2016

16

Equitable Tota l

Alarm Sharing Nonmajor

NET Ordinance Proceeds Governmental

Fund Fund Fund Funds

Assets

Equity in pooled cash and equivalents 35,899$ $ 176,885$ 212,784$

Receivables 6,979 6,979

Total assets 35,899$ 6,979$ 176,885$ 219,763$

Liabilities

Accounts payable and

accrued liabil ities 270$ 4,802$ $ 5,072$

Due to other funds 2,177 2,177


Total liabilities 35,899 6,979 42,878

Fund balances

Restricted 176,885 176,885

Total liabilities and

fund balances 35,899$ 6,979$ 176,885$ 219,763$


Combining Statements of Revenues, ExpendituresAnd Changes in Fund Balances – Nonmajor Governmental Funds


17

Equitable Tota l

Alarm Sharing Nonmajor

NET Ordinance Proceeds Governmenta l


Revenues

Licenses and permits $ 167,573$ $ 167,573$

Intergovernmental 27,570 11,139 38,709


Total revenues 27,570 167,573 12,041 207,184

Expenditures

Current:

Public safety:

Personal services 165,074 165,074

Operating expenditures 12,504 21,688 105,000 139,192

Capital outlay 15,066 15,066

Total expenditures 27,570 186,762 105,000 319,332

Excess of revenues over

(under) expenditures (19,189) (92,959) (112,148)


Transfers in (out) 19,189 19,189

Net change in fund balances (92,959) (92,959)

Fund balances

October 1, 2015 269,844 269,844

Fund balances

September 30, 2016 $ $ 176,885$ 176,885$

18

MANAGEMENT LETTER


We have audited the financial statements of the office of the St. Johns County Sheriff (the “Office”), asof and for the year ended September 30, 2016, and have issued our report thereon dated April 19, 2017.That report should be considered in conjunction with this management letter.




Other Matters







19



We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of each major fund andthe aggregate remaining fund information of the office of the St. Johns County Sheriff (the “Office”), asof and for the year ended September 30, 2016, and the related notes to the financial statements, whichcollectively comprise the Office’s special purpose financial statements, and have issued our reportthereon dated April 19, 2017.


In planning and performing our audit of the financial statements, we considered the Office’s internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances 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 Office’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Office’s internal control.





20






21



We have examined the office of the St. Johns County Sheriff’s (the “Office”) compliance with therequirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during theyear ended September 30, 2016. Management is responsible for the Office’s compliance with thoserequirements. Our responsibility is to express an opinion on the Office’s compliance based on ourexamination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Office’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonable basisfor our opinion. Our examination does not provide a legal determination on the Office’s compliance withspecified requirements.






~beriff DAVID B. SHOAR ST. JOHNS COUNTY SHERIFF'S OFFICE

OFFICE 904/824-8304

Sherill F Norman, CPA Florida Auditor General 111 West Madison Street Tallahassee, FL 32399-1450

4015 LEWIS SPEEDWAY, ST. AUGUSTINE, FLORIDA 32084

WWW.SJSO.ORG

April 20, 2017

SUBJECT: RESPONSE TO 2016 MANAGEMENT LETTER

Management is pleased to report that there are no audit findings in the current year. We at the St. Johns County Sheriffs Office will continue to place a high importance on accurate financial reporting and sound internal controls.

Should you need further information about the financial condition or internal controls at the St. Johns County Sheriffs Office, please contact me directly.

FOR THE SHERIFF:

COPY: David B. Shoar, Sheriff Matthew Cline, Undersheriff Melissa Farris, Finance Supervisor

An Internationally and State Accredited Agency

"First on the First Coast"

Sincerely,

~e~~ Director of Financial Services

St. Johns CountySupervisor of Elections

Audit Report

September 30, 2016

St. Johns County Supervisor of Elections




Balance Sheet 3

Statement of Revenues, Expenditures and Changes in Fund Balance 4





Management Letter 9



Elected Official's Response to Auditor's Comments 13


1

The Honorable Vicky C. OakesSupervisor of ElectionsSt. Johns County, Florida


We have audited the accompanying financial statements of the office of the St. Johns County Supervisorof Elections (the “Office”) as of and for the year ended September 30, 2016, and the related notes to thefinancial statements, which collectively comprise the Office’s special purpose financial statements aslisted in the table of contents.




Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.



2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, thefinancial position of the Office as of September 30, 2016, and the changes in its financial position for theyear then ended in accordance with accounting principles generally accepted in the United States ofAmerica.

Emphasis of Matter

We draw attention to Note 1 to the financial statements, which describes that the accompanyingfinancial statements were prepared solely for the purpose of complying with the Rules of the AuditorGeneral of the State of Florida. In conformity with the Rules, the accompanying financial statements arespecial purpose financial statements that do not constitute a complete presentation, but otherwiseconstitute financial statements prepared in accordance with generally accepted accounting principles.Our opinion is not modified with respect to this matter.

Other Matters




In accordance with Government Auditing Standards, we have also issued our report dated March 6,2017, on our consideration of the Office’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Office’s internalcontrol over financial reporting and compliance.

Gainesville, FloridaMarch 6, 2017


Balance Sheet – Governmental FundsSeptember 30, 2016

General

Fund

Assets

Due from other county agencies 57,057$

Liabilities

Accounts payable and accrued liabilities 54,885$

Due to other county agencies 2,172


Fund balance



3




General

Fund

Revenues

Intergovernmental 26,914$

Charges for services 8,060

Total revenues 34,974

Expenditures

Current:

General government:

Personal services 1,283,498

Operating expenditures 675,673


Excess of revenues under expenditures (1,924,197)


Appropriation from board of county commissioners 2,015,708


Total other financing sources (uses) 1,924,197

Net change in fund balance

Fund balance – October 1, 2015

Fund balance – September 30, 2016 $


4



5


The accounting policies of the office of the St. Johns County Supervisor of Elections (the “Office”)conform to generally accepted accounting principles as applicable to governments. The following is asummary of the more significant policies.

Reporting Entity

The Supervisor of Elections is an elected constitutional officer, whose office is established by Article VIIIof the Constitution of the State of Florida and is governed by various provisions of state law.



The Office’s financial statements are special purpose financial statements that have been preparedsolely for the purpose of complying with the Rules of the Auditor General of the State of Florida (the“Rules”). These special purpose financial statements are the fund financial statements required bygenerally accepted accounting principles. However, these fund financial statements do not constitute acomplete presentation because, in conformity with the Rules, the Office has not presentedreconciliations to the government wide financial statements, the government–wide financialstatements, or management’s discussion and analysis. Also, certain notes to the financial statementsmay supplement rather than duplicate the notes included in the County’s countywide financialstatements.

Fund Accounting

Accounts are organized on the basis of funds, each of which is considered a separate accounting entity.The operations of each fund are accounted for with a separate set of self balancing accounts thatcomprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources areallocated to, and accounted for in, individual funds based upon the purposes for which they are to bespent and the means by which spending activities are controlled. The focus of fund financial statementsis on major funds, each displayed in a separate column. All nonmajor funds are aggregated anddisplayed in a single column. The Office has no nonmajor funds.


General Fund – The General Fund is the primary operating fund. It is used to account for and reportall financial resources not accounted for and reported in another fund.

Fund Balance




6















7





Cash

Cash is placed in a bank that qualifies as a public depository pursuant to the provisions of the FloridaSecurity For Public Deposits Act. Every qualified public depository is required by this law to deposit withthe State Treasurer eligible collateral equal to, or in excess of, an amount to be determined by the StateTreasurer. The State Treasurer is required to ensure that all funds are entirely collateralized throughoutthe fiscal year.

Use of Estimates






Budgeted Amounts

Original Final ActualRevenues

Intergovernmental $ 26,914$ 26,914$

Charges for services 209,000 209,000 8,060

Total revenues 209,000 235,914 34,974

Expenditures

Current:

General government services:




Excess of revenues under expenditures (1,779,794) (1,779,794) (1,924,197)


Appropriation from board of county commissioners 1,779,794 1,779,794 2,015,708

Reversion to the board of county commissioners (91,511)



Fund balances – October 1, 2015

Fund balances – September 30, 2016 $ $ $

Notes to schedule:


principles. Its preparation, adoption, and amendment is governed by Florida Statutes. The fund is the legal

level of control.

8

MANAGEMENT LETTER

9


We have audited the financial statements of the office of the St. Johns County Supervisor of Elections(the “Office”), as of and for the year ended September 30, 2016, and have issued our report thereondated March 6, 2017. That report should be considered in conjunction with this management letter.




Other Matters







10



We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the office of the St.Johns County Supervisor of Elections (the “Office”), as of and for the year ended September 30, 2016,and the related notes to the financial statements, which collectively comprise the Office’s specialpurpose financial statements, and have issued our report thereon dated March 6, 2017.


In planning and performing our audit of the financial statements, we considered the Office’s internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances 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 Office’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Office’s internal control.





11






12



We have examined the office of the St. Johns County Supervisor of Elections’ (the “Office”) compliancewith the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies,during the year ended September 30, 2016. Management is responsible for the Office’s compliance withthose requirements. Our responsibility is to express an opinion on the Office’s compliance based on ourexamination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Office’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonable basisfor our opinion. Our examination does not provide a legal determination on the Office’s compliance withspecified requirements.






‐ 13 ‐

St. Johns County Tax Collector

Audit Report

September 30, 2016





Balance Sheet 3

Statement of Revenues, Expenditures and Changes in FundBalance 4

Fiduciary Funds:





SUPPLEMENTARY INFORMATIONCombining Statement of Fiduciary Net Position – Agency Funds 12



Independent Auditor’s Report on Internal Control Over Financial Reportingand on Compliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance with Government AuditingStandards 14

Independent Accountant’s Report on Compliance with Section 218.415,Florida Statutes 16

Elected Official’s Response to Auditor’s Comments

1


The Honorable Dennis HollingsworthTax CollectorSt. Johns County, Florida


We have audited the accompanying financial statements of the major fund and the aggregate remaining fundinformation of the office of the St. Johns County Tax Collector (the “Office”) as of and for the year endedSeptember 30, 2016, and the related notes to the financial statements, which collectively comprise theOffice’s special purpose financial statements as listed in the table of contents.


Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud orerror.


Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by theComptroller General of the United States. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the major fund and the aggregate remaining fund information of the Office asof September 30, 2016, and the respective changes in financial position, where applicable, thereof for theyear then ended in accordance with accounting principles generally accepted in the United States of America.



2

Emphasis of Matters

We draw attention to Note 1 to the financial statements, which describes that the accompanying financialstatements were prepared solely for the purpose of complying with the Rules of the Auditor General of theState of Florida. In conformity with the Rules, the accompanying financial statements are special purposefinancial statements that do not constitute a complete presentation, but otherwise constitute financialstatements prepared in accordance with generally accepted accounting principles. Our opinions are notmodified with respect to this matter.

Other Matters


Accounting principles generally accepted in the United States of America require that the budgetarycomparison information be presented to supplement the special purpose financial statements. Suchinformation, although not a part of the special purpose financial statements, is required by the GovernmentalAccounting Standards Board, who considers it to be an essential part of financial reporting for placing thespecial purpose financial statements in an appropriate operational, economic, or historical context. We haveapplied certain limited procedures to the required supplementary information in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries of managementabout the methods of preparing the information and comparing the information for consistency withmanagement’s responses to our inquiries, the special purpose financial statements, and other knowledge weobtained during our audit of the special purpose financial statements. We do not express an opinion orprovide any assurance on the information because the limited procedures do not provide us with sufficientevidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Office’s special purpose financial statements. The supplementary information listed in the tableof contents is presented for purposes of additional analysis and is not a required part of the special purposefinancial statements. Such information is the responsibility of management and was derived from and relatesdirectly to the underlying accounting and other records used to prepare the special purpose financialstatements. The information has been subjected to the auditing procedures applied in the audit of the specialpurpose financial statements and certain additional procedures, including comparing and reconciling suchinformation directly to the underlying accounting and other records used to prepare the special purposefinancial statements or to the special purpose financial statements themselves, and other additionalprocedures in accordance with auditing standards generally accepted in the United States of America. In ouropinion, the information is fairly stated in all material respects in relation to the special purpose financialstatements as a whole.


In accordance with Government Auditing Standards, we have also issued our report dated April 6,2017 on ourconsideration of the Office’s internal control over financial reporting and on our tests of its compliance withcertain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and complianceand the results of that testing, and not to provide an opinion on internal control over financial reporting or oncompliance. That report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the Office’s internal control over financial reporting and compliance.

St, Augustine, FloridaApril 6, 2017

g

St Augustine Florida


Balance Sheet – Governmental FundsAs of September 30, 2016

See accompanying notes.3

GeneralFund

AssetsEquity in pooled cash and equivalents 3,985,454$Due from other funds 129,024Due from other governments 43

Total assets 4,114,521$

Liabilities and fund balanceLiabilities:

Accounts payable and accrued liabilities 19,680$Due to other governments 403,721Due to other county agencies 3,678,635


Fund balance restricted for Project Buckle Up 12,485

Total liabilities and fund balance 4,114,521$





GeneralFund

RevenuesCharges for services 9,129,927$Investment revenue 24,337Miscellaneous revenue 3,080

Total revenues 9,157,344


General government services:Personal services 4,478,873Operating expenditures 776,745Capital outlay 252,333


Excess of revenues over expenditures 3,649,393

Other financing usesReversion to board of county commissioners (3,647,762)

Net change in fund balance 1,631

Fund balance, October 1, 2015 10,854

Fund balance, September 30, 2016 12,485$


Statement of Fiduciary Net PositionAs of September 30, 2016


AgencyFund

AssetsEquity in pooled cash and equivalents 6,514,309$Accounts receivable 24,349

Total assets 6,538,658

LiabilitiesAssets held for others 5,545,049Due to other funds 129,024Due to other county agencies 864,585


Net position $



6


The accounting policies of the office of the St. Johns County Tax Collector (the “Office”) conform togenerally accepted accounting principles as applicable to governments. The following is a summary ofthe more significant policies.

Reporting Entity

The Tax Collector is an elected constitutional officer, whose office is established by Article VIII of theConstitution of the State of Florida and is governed by various provisions of state law.




Fund Accounting



General Fund – The General Fund is the primary operating fund. It is used to account for and reportall financial resources not accounted for and reported in another fund.

The Office also reports the following fiduciary funds:

Agency Funds – Agency Funds are used to account for assets held in a custodial capacity.

Fund Balance

The Office follows the provisions of GASB Statement No. 54, Fund Balance Reporting and GovernmentFund Type Definitions to classify fund balances for governmental funds into specifically definedclassifications. The classifications comprise a hierarchy based primarily on the specific purposes forwhich amounts in the funds can be spent.



7
















8






The Office maintains a cash and equivalents pool that is available for use by all funds. Each fund’sportion of this pool is displayed on the balance sheet as “Equity in Pooled Cash and Equivalents.” If afund overdraws its account in the pool, a liability and corresponding receivable (i.e., due to/from otherfunds) are reported on the balance sheet.

Investments

The Office has adopted an investment policy pursuant to Section 218.415, Florida Statutes, which allowsfor surplus funds to be invested in the Local Government Surplus Funds Trust fund (the “State Pool”) orany intergovernmental investment pool; Securities and Exchange Commission registered money marketfunds; certificates of deposits, investment grade obligations of state, provincial and local governmentsand public authorities; investment grade commercial paper and certain repurchase agreements andother securities of registered investment companies in funds meeting specific criteria.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principlesrequires management to make various estimates. Actual results could differ from those estimates.


Deposits

All deposits of the Office are placed in banks that qualify as public depositories pursuant to theprovisions of the Florida Security for Public Deposits Act. Every qualified public depository is required bythis law to deposit with the Chief Financial Officer eligible collateral equal to, or in excess of, an amountto be determined by the Chief Financial Officer. The Chief Financial Officer is required to ensure that allfunds are entirely collateralized throughout the fiscal year.

Investment in State Pool

The Office invests surplus funds in an external investment pool, the Local Government Surplus FundsTrust Fund (“Florida PRIME”) that is administered by the Florida State Board of Administration whoprovides regulatory oversight.



9


The Florida PRIME is an external investment pool that meets all of the necessary criteria to elect tomeasure all of the investments in Florida PRIME at amortized cost. Therefore, the Office’s investment inthe Florida PRIME is reported at amortized cost. The fair value of the position in the pool is equal to thevalue of the pool shares.

As of September 30, 2016, there were no redemption fees or maximum transaction amounts or anyother requirements that serve to limit participant’s access to 100 percent of the account value.

At year end, the Office had investments in the Florida PRIME as summarized below:

General fund 5,983$Agency fund 42,769

Total 48,752$

The Office’s investment in the Florida PRIME exposes it to credit risk, defined as the risk that an issuer orother counterparty to an investment will not fulfill its obligations. The Office has a formal investmentpolicy that addresses credit risk and limits investments to the safest types of securities, pre qualifying allthird party advisors and diversifying the investment portfolio to minimize potential losses on individualsecurities. The Florida PRIME is rated by Standard and Poor’s and has a rating of AAAm at September 30,2016.

The Office’s investments in the Florida PRIME are included in Cash and Equivalents in the accompanyingfinancial statements.

Investment in Money Market Mutual Fund

The Office also invests in the Fidelity Institutional Money Market Prime Money Market Portfolio. Theweighted average maturity of the fund was 7 days. The fund is rated by Standard and Poor’s and has arating of AAAm. At September 30, 2016, $500,000 is included in Cash and Equivalents in theaccompanying financial statement.

NOTE 3 – FAIR VALUE MEASUREMENTS

The Office categorizes its fair value measurements within the fair value hierarchy established bygenerally accepted accounting principles. The hierarchy is based on the valuation inputs used tomeasure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identicalassets; Level 2 inputs are significant other observable inputs; Level 3 are significant unobservable inputs.

The Office has recurring fair value measurements for its investment in mutual funds valued at the dailyclosing price as reported by the fund. The fair value of the Office’s investments in money market mutualfunds totaled $500,000 at September 30, 2016 and are considered Level 1 in the fair value hierarchy.



10

NOTE 4 – INTERFUND BALANCES

The following interfund balances arose through the normal course of operations:

Due From Due ToOther Funds Other Funds

General fund 129,024$ $Agency funds:

Tax fund 21,760Tag fund 74,590Delinquent fund 32,674

Total 129,024$ 129,024$





11


RevenuesCharges for services 8,650,646$ 8,650,646$ 9,129,927$Investment revenue 27,971 27,971 24,337Miscellaneous revenue 3,080

Total revenues 8,678,617 8,678,617 9,157,344


General government services:Personal services 4,718,648 4,687,749 4,478,873Operating expenditures 785,177 814,673 776,745Capital outlay 250,930 252,333 252,333


Excess of revenues over expenditures 2,923,862 2,923,862 3,649,393

Other financing sources (uses)Reversion to board of county commissioners (2,923,862) (2,923,862) (3,647,762)

Net change in fund balances 1,631

Fund balances October 1, 2015 10,854

Fund balances September 30, 2016 $ $ 12,485$

Notes to schedule:

The budget is prepared on a basis that does not differ materially from U.S. generally accepted

accounting principles. Its preparation, adoption, and amendment is governed by Florida



Combining Statement of Fiduciary Net PositionAgency Funds

As of September 30, 2016

12

Total

Tax Tag Delinquent Agency


Assets

Equity in pooled cash and equivalents 5,307,345$ 560,233$ 646,731$ 6,514,309$

Accounts receivable 2,548 21,801 24,349

Total assets 5,309,893 582,034 646,731 6,538,658

Liabilities

Assets held for others 4,563,018 505,822 476,209 5,545,049

Due to other funds 21,760 74,590 32,674 129,024

Due to other county agencies 725,115 1,622 137,848 864,585

Total liabilities 5,309,893 582,034 646,731 6,538,658

Net position $ $ $ $

13

MANAGEMENT LETTER


We have audited the financial statements of the office of the St. Johns County Tax Collector (the“Office”), as of and for the year ended September 30, 2016, and have issued our report thereondated April 6, 2017. That report should be considered in conjunction with this management letter.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Additionally, our auditwas conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General,which govern the conduct of local governmental entity audits performed in the State of Florida andrequire that certain items be addressed in this letter.


The Rules of the Auditor General require that we comment as to whether or not corrective actionshave been taken to address findings and recommendations made in the preceding audit. If the auditfindings in the preceding audit are uncorrected, we are required to identify those findings that werealso included in the second preceding audit report. The Office has no uncorrected prior auditfindings that are required to be identified pursuant to the Rules of the Auditor General.

Other Matters

Our audit did not reveal any other matters that we are required to include in this managementletter.

The purpose of this management letter is solely to comply with the requirements of Chapter10.550, Rules of the Auditor General. Accordingly, this communication is not suitable for any otherpurpose.

We wish to take this opportunity to thank you and your staff for the cooperation and courtesiesextended to us during the course of the audit. Please let us know if you have any questions orcomments concerning this letter, our accompanying reports, or other matters.




comments concerning this letter, our accompanying

St. Augustine, FlFlorida

14

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS


We have audited, in accordance with the auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statements of themajor fund and the aggregate remaining fund information of the office of the St. Johns County TaxCollector (the “Office”), as of and for the year ended September 30, 2016, and the related notes tothe financial statements, which collectively comprise the Office’s special purpose financialstatements, and have issued our report thereon dated April 6, 2017.


In planning and performing our audit of the financial statements, we considered the Office’sinternal control over financial reporting (internal control) to determine the audit procedures thatare appropriate in the circumstances for the purpose of expressing our opinions on the financialstatements, but not for the purpose of expressing an opinion on the effectiveness of the Office’sinternal control. Accordingly, we do not express an opinion on the effectiveness of the Office’sinternal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is adeficiency, or a combination of deficiencies, in internal control such that there is a reasonablepossibility that a material misstatement of the entity’s financial statements will not be prevented,or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combinationof deficiencies, in internal control that is less severe than a material weakness, yet importantenough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph ofthis section and was not designed to identify all deficiencies in internal control that might bematerial weaknesses or significant deficiencies and therefore, material weaknesses or significantdeficiencies may exist that were not identified. Given these limitations, during our audit we did notidentify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified.



15


As part of obtaining reasonable assurance about whether the Office’s financial statements are freefrom 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 andmaterial effect on the determination of financial statement amounts. However, providing anopinion on compliance with those provisions was not an objective of our audit, and accordingly, wedo not express such an opinion. The results of our tests disclosed no instances of noncompliance orother matters that are required to be reported under Government Auditing Standards.




compliance. Accordingly, this communication

St Augustine Florida

-16

INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDASTATUTES


We have examined the office of the St. Johns County Tax Collector’s (the “Office”) compliance withthe requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, duringthe year ended September 30, 2016. Management is responsible for the Office’s compliance withthose requirements. Our responsibility is to express an opinion on the Office’s compliance based onour examination.

Our examination was conducted in accordance with attestation standards established by theAmerican Institute of Certified Public Accountants and, accordingly, included examining, on a testbasis, evidence about the Office’s compliance with those requirements and performing such otherprocedures as we considered necessary in the circumstances. We believe that our examinationprovides a reasonable basis for our opinion. Our examination does not provide a legaldetermination on the Office’s compliance with specified requirements.

In our opinion, the Office complied, in all material respects, with the aforementioned requirementsfor the year ended September 30, 2016.

This report is intended solely for the information and use of management and the State of FloridaAuditor General and is not intended to be and should not be used by anyone other than thesespecified parties.




specified parties.

---

1-~

ST . .JOHNS COUNTY

TAX C OLLECTOR ~ q.NI~ W. HOLLI N GS WORTH.CFC

April 6, 2017

Sherrill F. Norman State of Florida Auditor General Claude Pepper Building, Room 401 111 West Madison Street Tallahassee, FL 32399-1450

To Whom It May Concern:

P . O . Box 900 I

ST , AUOU STINI!'. . FLORIDA 32085

P : 904 209 2250

~ : 904 209 2283

WWW.5JCTAX.US

We are pleased to accept the Audit ending September 30, 2016 with no findings.

Should you have any questions or concerns, please feel free to contact us.

Sincerely,

~w.~J) Dennis W. Hollingsworth, C.F.C. Tax Collector, St. Johns County

DWH/cls

INNOVATION INTEGRITY EXPERTISE ~ MAILING ADDIH '..>'..> I OR ALL LOCATIONS P 0 HOX ')00 I ST AUGUSTINE 11 .l208 5 900 I

ST. AUGUSTINE • MAIN

40.30 L£W1$ SPC.E.DWAY

ST. AUOUSTJt-iE, FL 32084

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ST, AUOUSTINC, fl.. 32086

H"STIMOS 6 190 S. MA•H ST. Sn£

HASTINOa, FL 3 2 I 415

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7Z5 FLORA 8RAHCH 8\.VO 0430 PAL.M VALLEY ROAD

SAINT JOMNS, FL 322&9 Po1nc Ve.ORA BEACH. Fl.. 32082

Housing Finance Authorityof


Audit Report

September 30, 2016

Housing Finance Authority of St. Johns County, Florida


REPORTIndependent Auditor’s Report 1

MANAGEMENT’S DISCUSSION AND ANALYSIS 3

BASIC FINANCIAL STATEMENTSStatement of Net Position and Governmental Fund Balance Sheet 7

Statement of Activities and Governmental Fund Revenues, Expendituresand Changes in Fund Balance 8


REQUIRED SUPPLEMENTARY INFORMATIONSchedule of Revenues, Expenditures and Changes in Fund Balances –

Budget and Actual – General Fund 14



Independent Auditor’s Report on Internal Control Over FinancialReporting and on Compliance and Other Matters Based on an Auditof Financial Statements Performed in Accordance with GovernmentAuditing Standards 17


1


To the MembersHousing Finance Authorityof St. Johns County, Florida


We have audited the accompanying financial statements of the governmental activities and the generalfund of the Housing Finance Authority of St. Johns County, Florida (the “Authority”), a component unitof St. Johns County, Florida, as of and for the year ended September 30, 2016, and the related notes tothe financial statements, which collectively comprise the Authority’s basic financial statements as listedin the table of contents.





An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of risks of material misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.



2


Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities and the general fund of the Authority as ofSeptember 30, 2016, and the respective changes in financial position thereof for the year then ended inconformity with accounting principles generally accepted in the United States of America.

Other Matters


Accounting principles generally accepted in the United States of America require that management’sdiscussion and analysis and the budgetary comparison schedule be presented to supplement the basicfinancial statements. Such information, although not a part of the basic financial statements, is requiredby the Governmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s responses to our inquiries, the basicfinancial statements, and other knowledge we obtained during our audit of the basic financialstatements. We do not express an opinion or provide any assurance on the information because thelimited procedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.


In accordance with Government Auditing Standards, we have also issued our report dated March 8,2017 our consideration of the Authority’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Authority’s internalcontrol over financial reporting and compliance.

St. Augustine, FloridaMarch 8, 2017


Management’s Discussion and Analysis

3

General

The Housing Finance Authority of St. Johns County, Florida (the “Authority”) is a public corporationformed in 1980 to promote and support affordable housing in St. Johns County.

The Authority reviews low income single family and multi family housing projects that are seeking publicfunding in the form of revenue bonds. Projects are reviewed to determine if they comply with theapplicable state statutes and offer a benefit to St. Johns County. Once compliance with these criteria hasbeen determined, the bond issue is recommended to the Board of County Commissioners for finalapproval.

Basic Financial Statements

The Authority is engaged in a single governmental program and administers only one fund, the GeneralFund. It has taken the option of presenting combined fund financial statements and government widestatements using a columnar format that reconciles fund financial data to government wide data in aseparate column.

The Statement of Net Position and Governmental Fund Balance Sheet reports the Authority’s financialposition as of the end of the fiscal year for both the General Fund and the governmental activities.

The Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in FundBalance reports changes in financial position of the General Fund and the governmental activities, andthe degree to which the functional expenses are offset by program revenues for the governmentalactivities.


Management's Discussion and Analysis

As of September 30, 2016 2015

Assets

Non capital assets 1,122,875$ 1,072,727$

Liabilities

Current liabilities 753,851 676,684

Net position

Restricted 732,299 684,151

Unrestricted (363,275) (288,108)

Total net position 369,024$ 396,043$

Year ended September 30, 2016 2015

Program revenues

Charges for services 24,197$ 26,030$

Operating grants 1,685,445 1,740,687

Total program revenues 1,709,642 1,766,717

General revenues

Investment income 5,170 6,885

Total revenues 1,714,812 1,773,602

Program expenses

Economic environment 1,741,831 1,833,581

Change in net position (27,019) (59,979)

Beginning net position 396,043 456,022

Ending net position 369,024$ 396,043$

Change in Net Position

Net Position

4



5

Financial Information

As of September 30, 2016, the Authority had assets of $1,122,875. This represents an increase of$50,148 from the prior year. The following tabulation outlines the components of the Authority’s assetsas of September 30:

Net

2016 2015 Inc/(Dec)

Cash and investments 19,647$ 46,384$ (26,737)$

Due from other governments 130,056 96,769 33,287

Notes receivable 240,873 245,423 (4,550)

Property held for sale 732,299 684,151 48,148

Total assets 1,122,875$ 1,072,727$ 50,148$

Notes Receivable consists of loans made to various organizations to assist with the construction andrenovation of single and multi family low income housing. Lending money is not a primary function ofthe Authority but loans are considered on a project by project basis.

Property Held for Sale is comprised of economic development properties in the amount of $732,299.

Liabilities of the General Fund at September 30, 2016 were $753,851, including $501,900 short termdebt and $183,154 of unearned revenues.

The General Fund had an unassigned fund balance at September 30, 2016 of $(561,534).

The non spendable fund balance is comprised of long term receivables of $198,259 and restricted fundbalance is comprised of property held for sale of $732,299. Those fund balances are not a part of theexpendable assets of the Authority.

The primary sources of revenue for the Authority are operating grants, bond issuance and transfer fees,with additional revenues earned in the form of interest on cash deposits, investments and notesreceivable. For the year ended September 30, 2016, the Authority received operating grants of$1,685,445 and earned bond issue fees of $7,617. Interest earnings on investments for the year were$476. Interest earnings on outstanding notes receivable totaled $4,694.

Budgetary Information

The original budget for the Authority anticipated revenues of $1,765,751 and expenditures of$1,765,751 and an overall zero change in fund balance. Over the course of the fiscal year, budgetamendments were adopted to increase anticipated revenues by $173,873 and increase proposedexpenditures by $145,574.

On the budgetary basis, expenditures were approximately $225,000 less than the budgeted amount.



6

Economic Factors

We are not currently aware of any conditions that are expected to have a significant effect on theAuthority’s financial position or results of operations.

Requests for Information

Questions concerning this report or requests for additional information should be addressed to St. JohnsCounty Housing Finance Authority, PO Box 1533, St. Augustine, Florida 32085 1533.


Statement of Net Position and Governmental Fund Balance Sheet

General Statement of

Fund Adjustments Net Position

Assets

Cash 17,570$ $ 17,570$

Investments 2,077 2,077

Due from other governments 130,056 130,056

Notes receivable:

Due within one year 42,614 42,614

Due after one year 198,259 198,259

Property held for sale 732,299 732,299

Total assets 1,122,875$ 1,122,875

Liabilities

Accounts payable and accrued liabilities 68,797$ 68,797

Short term debt 501,900 501,900


Total liabilities 753,851 753,851

Fund balances

Nonspendable – long term receivables 198,259 (198,259)

Restricted – property held for sale 732,299 (732,299)

Unassigned (561,534) 561,534

Total fund balances 369,024 (369,024)

Total liabilities and fund balances 1,122,875$

Net position

Restricted 732,299 732,299

Unrestricted (363,275) (363,275)


September 30, 2016


7


Statement of Activities and Governmental Fund Revenues,Expenditures and Changes in Fund Balance



Fund Adjustments Activities

Expenditures/expenses

Economic environment:

Operations 1,741,831$ $ 1,741,831$

Program revenues

Operating grants 1,685,445 1,685,445

Charges for services 24,197 24,197

Total program revenues 1,709,642 1,709,642

Net program revenues (32,189)

General revenues

Investment income 5,170 5,170


expenditures (27,019) 27,019


Fund balance / net position, beginning of year 396,043 396,043

Fund balance / net position, end of year 369,024$ $ 369,024$


8



9


Reporting Entity

The Housing Finance Authority of St. Johns County, Florida (the “Authority”) was created as a Floridapublic corporation in accordance with the Florida Housing Finance Authority Law, Part IV of Chapter 159,Florida Statutes, following the adoption of an approving ordinance (No. 80 7, dated February 26, 1980)by the Board of County Commissioners of St. Johns County, Florida (the “Board”). The purpose of theAuthority is to promote and support affordable housing in St. Johns County. The Authority is authorizedto issue bonds to fulfill its corporate purpose in principal amounts specifically authorized by the Board.

The Board appoints the Authority Members, who serve a term of four years. The Board has the power toremove a Member of the Authority from office without cause. For financial reporting purposes theAuthority is considered a component unit of St. Johns County.

The Authority uses the criteria established in Governmental Accounting Standards Board (“GASB”)Statement No. 14, as amended, to identify component units. The Authority’s financial statements do notcontain any component units.

At September 30, 2016, the Authority had not entered into any joint ventures.

Reporting Model

As a dependent special district, the Authority accounts for its activities using the governmental financialreporting model and follows GASB Statement No. 34, Basic Financial Statements – and Management’sDiscussion and Analysis – for State and Local Governments, as amended.






10



The General Fund’s financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soon asthey are both measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose, the Authority considers revenues to be available if they are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are recorded when the related fund liabilityis incurred.

The government wide financial statements are reported using the economic resources measurementfocus and the accrual basis of accounting. Revenues are recorded when earned and expenses arerecorded when a liability is incurred, regardless of the timing of related cash flows.

Property Held for Sale

Property held for sale consists of economic development properties and are stated at cost. Proceedsfrom sales are restricted as to their use.

Net Position/Fund Balance

Net position represents the difference between assets and liabilities reported for the governmentalactivities. Net position is reported as restricted when there are externally imposed restrictions.Unrestricted net position is net position that does not meet the definition of the classification previouslydescribed. When both restricted and unrestricted resources are available for use, it is the Authority’spolicy to use restricted resources first, and then unrestricted resources as they are needed.

The Authority follows the provisions of GASB Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions to classify fund balances for governmental funds into specificallydefined classifications. The classifications comprise a hierarchy based primarily on the extent to whichthe Authority is bound to honor constraints on the specific purposes for which amounts in the funds canbe spent.



Restricted Fund Balance – Restricted fund balances are restricted when constraints placed on theuse of resources are either: (a) externally imposed by creditors, grantors, contributors, or laws or



11


regulations of other governments; or (b) imposed by law through constitutional provisions orenabling legislation.

Committed Fund Balance – Committed fund balances are amounts that can only be used for specificpurposes as a result of constraints imposed by formal action of the Authority’s highest level ofdecision making authority, which is a resolution of the Board of Directors. Committed amountscannot be used for any other purpose unless the Authority removes those constraints by taking thesame type of action.

Assigned Fund Balance – Assigned fund balances are amounts that are constrained by theAuthority’s intent to be used for specific purposes, but are neither restricted nor committed. Intentis expressed by (a) the Board of Directors or (b) a body or official to which the Board has delegatedthe authority to assign amounts to be used for specific purposes.


The Authority’s policy is to expend resources in the following order: restricted, committed, assigned,and unassigned.

Use of Estimates



Deposits

All of the cash deposits of the Authority are placed with qualified public depositories and are entirelyinsured by Federal depository insurance and/or collateralized pursuant to Chapter 280, Florida Statutes.

Investments

Section 218.415, Florida Statutes, authorizes the Authority to invest in the Local GovernmentInvestment Pool (the “State Pool”), Security and Exchange Commission (“SEC”) registered money marketfunds with the highest credit quality rating, interest bearing time deposits or savings accounts inqualified public depositories and direct obligations of the U.S. Treasury.

The Authority invests temporarily idle resources in the State Pool. The State Pool is administered by theFlorida State Board of Administration (“SBA”), who provides regulatory oversight.



12


The Florida PRIME is an external investment pool that meets all of the necessary criteria to elect tomeasure all of the investments in Florida PRIME at amortized cost. Therefore, the Authority’sinvestment in Florida PRIME is reported at amortized cost. The fair value of the position in the pool isequal to the value of the pool shares. The Authority’s investment in the State Pool exposes it to creditrisk. The Authority does not have a formal investment policy relating to this risk, which is hereafterdescribed.

Credit Risk The risk that an issuer or other counterparty to an investment will not fulfill its obligations.

Florida PRIME is rated by Standard and Poor’s and has a rating at September 30, 2016 of AAAm.

Investments in the Florida PRIME at September 30, 2016 was $2,077.

NOTE 3 – NOTES RECEIVABLE

The Authority has four notes receivable at September 30, 2016, each secured by a Mortgage andSecurity Agreement. The first note ($70,000), issued August 31, 2015, is receivable over 30 years inmonthly installments of $225.15 at 1% interest. The second note ($55,000), issued May 30, 2001 andmodified September 26, 2002, is receivable over 20 years in monthly installments of $333 at 4% interest.The third note ($110,580), issued July 9, 2002, is receivable in full on or before March 27, 2026 withoutinterest. The fourth note ($37,500), issued December 8, 2005, was receivable in full on or beforeSeptember 15, 2012, with 3% interest. Since the original due date, the Authority has deferred paymenton the loan multiple times. The latest due date was March 15, 2014. At September 30, 2016, theAuthority has not made progress in restructuring the note. At September 30, 2016, the Authority hadoutstanding balances of $68,662, $24,131, $110,580, and $37,500 respectively, on these notes.



13

NOTE 4 – SHORT TERM DEBT

The Authority obtained a short term note from St. Johns County for construction costs on CommunityWorkforce Housing Innovation Pilot homes. The note requires interest at the LIBOR rate plus 150 basispoints and will be repaid with proceeds from the sale of the homes at closing.

Balance Balance

10/01/15 Additions Deletions 09/30/16

Note payable $ 448,450 $ 501,900 $ 448,450 $ 501,900

NOTE 5 – CONDUIT DEBT OBLIGATIONS

From time to time, the Authority has issued bonds to provide financial assistance to private sectorentities for the acquisition and construction of housing developments deemed to be in the publicinterest. The bonds are secured by the property financed and are payable solely from paymentsreceived on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquiredfacilities transfers to the private sector entity served by the bond issuance.

Neither the Authority, the County, the State, nor any political subdivision thereof is obligated in anymanner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in theaccompanying financial statements.

In December 2015, one bond issuance was satisfied in full through the sale of the related apartmentcomplex. As of September 30, 2016, there was one remaining series of bonds outstanding. Theaggregate principal amount payable could not be determined; however, the aggregate original issueamount was $7,800,000.


The Authority is exposed to various risks of loss related to general liability, property damage, and workrelated injuries of independent contractors. To manage its risk, the Authority carries an umbrellainsurance policy that covers all properties owned by the Authority. The Authority also carries a separateworker’s compensation policy. The Authority pays annual premiums for its coverage. There were noclaims paid which exceeded coverage during the last three fiscal years.



14

Actual

Budgeted Amounts (On Budgetary

Original Final Basis)

Revenues

Intergovernmental $ 1,746,686 $ 1,914,700 $ 1,736,132

Charges for services 16,835 20,000 24,197

Investment and other income 2,230 4,924 9,720

Total revenues 1,765,751 1,939,624 1,770,049

Expenditures


Operations 1,765,751 1,911,325 1,686,876

Excess of revenue over expenditures

Budgetary basis $ $ 28,299 $ 83,173

Basis difference (110,192)

GAAP basis $ (27,019)

Note to Schedule:

The budget is prepared on the cash basis of accounting which differs from U.S. generally acceptedaccounting principles. Its preparation, adoption, and amendment is governed by the AuthorityMembers pursuant to Florida Statutes. The fund is the legal level of control.

Since the budget is prepared on the cash basis of accounting, a budget to GAAP reconciliation ispresented above. Details of the basis difference are as follows:

Revenues (55,237)$

Expenditures (54,955)

Basis difference (110,192)$

MANAGEMENT LETTER

15


We have audited the financial statements of the Housing Finance Authority of St. Johns County,Florida’s, (the “Authority”) as of and for the fiscal year ended September 30, 2016, and have issued ourreport thereon dated March 8, 2017. That report should be considered in conjunction with themanagement letter.



The Rules of the Auditor General require that we comment as to whether corrective actions have beentaken to address findings and recommendations made in the preceding annual financial audit report. Ifthe audit findings in the preceding audit report are uncorrected, we are required to identify thosefindings that were also included in the second preceding audit report. The Authority has no uncorrectedprior audit findings that are required to be identified pursuant to the Rules of the Auditor General.

Financial Condition

As required by the Rules of the Auditor General, the scope of our audit included a review of theprovisions of Section 218.503, Florida Statutes, “Determination of Financial Emergency.” In connectionwith our audit, we determined that the Authority has not met one or more of the conditions describedin Section 218.503(1), Florida Statutes.




16


As a dependent special district, the Authority’s activity is included in the annual financial report of St.Johns County. As required by the Rules of the Auditor General, we determined that the annual financialreport for the fiscal year ended September 30, 2016, filed with the Department of Financial Servicespursuant to Section 218.32, Florida Statutes, is in substantial agreement with the audit report for thefiscal year ended September 30, 2016.

Other Matters



Thank you for the cooperation and courtesies extended to us during the course of the audit. Please letus know if you have any questions or comments concerning this letter, our accompanying reports, orother matters.



17


We have audited, in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States, the financial statements of the governmentalactivities and the general fund of the Housing Finance Authority of St. Johns County, Florida (the“Authority”), a component unit of St. Johns County, Florida, as of and for the year ended September 30,2016, and the related notes to the financial statements, which collectively comprise the Authority’sbasic financial statements, and have issued our report thereon dated March 8, 2017.


In planning and performing our audit of the financial statements, we considered the Authority’s internalcontrol over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances 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 Authority’s internal control.Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detected and corrected on atimely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal controlthat is less severe than a material weakness, yet important enough to merit attention by those chargedwith governance.

Our consideration of internal control over financial reporting was for the limited purpose described inthe first paragraph of this section and was not designed to identify all deficiencies in internal controlthat might be material weaknesses or significant deficiencies. Given those limitations, during our auditwe did not identify any deficiencies in internal control that we consider to be material weaknesses.However, material weaknesses may exist that have not been identified.



18


As part of obtaining reasonable assurance about whether the Authority’s financial statements are freeof 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 andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters thatare required to be reported under Government Auditing Standards.



St. Augustine, Florida

March 8, 2017

19



We have examined the Housing Finance Authority of St. Johns County, Florida’s (the “Authority”)compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment

Policies, during the year ended September 30, 2016. Management is responsible for the Authority'scompliance with those requirements. Our responsibility is to express an opinion on the Authority'scompliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Authority's compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonable basisfor our opinion. Our examination does not provide a legal determination on the Authority's compliancewith specified requirements.

In our opinion, the Authority complied, in all material respects, with the aforementioned requirementsfor the year ended September 30, 2016.





St. Johns CountyIndustrial Development Authority

Audit Report

September 30, 2016

St. Johns County Industrial Development Authority




BASIC FINANCIAL STATEMENTSStatement of Net Position and Governmental Funds Balance Sheet 6

Statement of Activities and Governmental Fund Revenues, Expendituresand Changes in Fund Balances 7


REQUIRED SUPPLEMENTARY INFORMATIONSchedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – General Fund 11





1


To the MembersSt. Johns County IndustrialDevelopment Authority


We have audited the accompanying financial statements of the governmental activities and the generalfund of the St. Johns County Industrial Development Authority (the “Authority”), a component unit of St.Johns County, Florida, as of and for the year ended September 30, 2016, and the related notes to thefinancial statements, which collectively comprise the Authority’s basic financial statements as listed inthe table of contents.








2


Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities and the general fund of the Authority as ofSeptember 30, 2016, and the respective changes in financial position thereof for the year then ended inaccordance with accounting principles generally accepted in the United States of America.

Other Matters


Accounting principles generally accepted in the United States of America require that the management’sdiscussion and analysis and the budgetary comparison schedule be presented to supplement the basicfinancial statements. Such information, although not a part of the basic financial statements, is requiredby the Governmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We have applied certain limited procedures to the required supplementaryinformation in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information andcomparing the information for consistency with management’s responses to our inquiries, the basicfinancial statements, and other knowledge we obtained during our audit of the basic financialstatements. We do not express an opinion or provide any assurance on the information because thelimited procedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.


In accordance with Government Auditing Standards, we have also issued our report dated March 3,2017 on our consideration of the Authority’s internal control over financial reporting and on our tests ofits compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion oninternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Authority’s internalcontrol over financial reporting and compliance.




3

General

The St. Johns County Industrial Development Authority (“IDA”) is a public corporation formed in 1980 tostimulate industrial development through the use of public financing.

Proposed or existing development projects that are seeking public funding in the form of bonds arereviewed by IDA to determine if they comply with the State of Florida Industrial Development Statutes,offer a benefit to the County and the proposed project is financially responsible. Once the IDAdetermines that these criteria have been met, the project and the related bond issue are recommendedto the Board of County Commissioners for approval.

In addition, the IDA promotes industrial and economic development in the County, as allowed by FloridaState Statute, by sponsoring various activities and providing support to other development centeredorganizations such as the St. Johns County Chamber of Commerce.



The Statement of Net Position and Governmental Funds Balance Sheet reports the Authority’s financialposition as of the end of the fiscal year for both the General Fund and the governmental activities.

The Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in FundBalances reports changes in financial position of the General Fund and the governmental activities, andthe degree to which the functional expenses are offset by program revenues for the governmentalactivities.




AssetsNon capital assets 144,478$ 178,109$Capital assets

Total assets 144,478 178,109

LiabilitiesCurrent liabilities 500 325Long term liabilities

Total liabilities 500 325

Net positionRestrictedUnrestricted 143,978 177,784



Program revenuesCharges for services 2,750$ $

General revenuesInvestment earnings 56 140

Total revenues 2,806 140

Program expensesEconomic environment 36,612 16,148




As of September 30, 2016, the IDA had assets of $144,478. These assets consisted of cash deposited in interest

bearing accounts. This represents a $33,631 decrease in total assets over the prior year. Liabilities for the same

period totaled $500 of accounts payable. This represents an increase of $175 in liabilities. Net position of the IDA

at September 30, 2016 was $143,978. This is a decrease in net position from the prior year of $33,806.

The primary source of revenue for the IDA is bond issuance fees, with additional revenues earned from interest

on cash deposits. For the year ended September 30, 2016, the IDA approved one bond for issuance for $1,000 in

fees, and miscellaneous charges of $1,750 for services. During the prior year, the IDA did not approve any bonds

for issuance. Interest earnings for the year were $56, which represents a decrease of $84 from the prior year’s

interest earned.

Net Position

Changes in Net Position

4



5


The original budget for the IDA anticipated revenues of $15,130 and expenditures of $53,075 and anoverall anticipated decrease in fund balance of $37,945. Over the course of the fiscal year, budgetamendments were adopted to decrease anticipated revenues by $12,328 and to decrease proposedexpenditures by $15,500. These amendments were processed to reflect the reduction in expectednumber of bond issuances and changes in interest rates and administrative costs.

The final budget for the fiscal year anticipated a net decrease in fund balance of $34,773. The actualoperating results exhibited a decrease in fund balance of $33,806.

Economic Factors

We are not currently aware of any conditions that are expected to have a significant effect on theAuthority’s financial position or results of operations.


Questions concerning any of the information provided in this report or requests for additional financialinformation should be addressed to 2825 Lewis Speedway, Suite 104, St. Augustine, Florida.


Statement of Net Position and Governmental Funds Balance SheetSeptember 30, 2016

General Statement

Fund Adjustments of Net Position

Assets

Cash 144,331$ $ 144,331$

Accounts receivable 147 147

Total assets 144,478$ 144,478

Liabilities

Accounts payable 500$ 500

Fund balance

Unassigned 143,978 (143,978)


Net positionUnrestricted 143,978$ 143,978$


6








Operations 36,612$ $ 36,612$

Program revenues

Charges for services 2,750 2,750

Net program revenues (33,862)

General revenues





Fund balance/net position, beginning of year 177,784 177,784

Fund balance/net position, end of year 143,978$ $ 143,978$


7



8


Reporting Entity

The St. Johns County Industrial Development Authority (the “Authority”) was created as a Florida publiccorporation in accordance with the Florida Authority Law, Part III of Chapter 159, Florida Statutes,following the adoption of an approving ordinance (No. 80 9, dated January 22, 1980) by the Board ofCounty Commissioners of St. Johns County, Florida (the “Board”). The purpose of the Authority is tostimulate industrial development through the use of public financing. The Authority is authorized toissue bonds to fulfill its corporate purpose in principal amounts specifically authorized by the Board.

The Board appoints the Authority Members, who serve a term of four years. The Board has the power toremove a Member of the Authority from office without cause. For financial reporting purposes theAuthority is considered a component unit of St. Johns County.



Reporting Model

As a dependent special district, the Authority accounts for its activities using the governmental financialreporting model and follows GASB Statement No. 34, Basic Financial Statements – and Management’sDiscussion and Analysis – for State and Local Governments, as amended.


The Statement of Net Position and Governmental Funds Balance Sheet reports the Authority’s financialposition as of the end of the fiscal year for both the General Fund and the governmental activities.

The Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in FundBalances reports changes in financial position of the General Fund and the governmental activities, andthe degree to which the functional expenses are offset by program revenues for the governmentalactivities.


The General Fund’s financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soon asthey are both measurable and available. Revenues are considered to be available when they are



9


collectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose, the Authority considers revenues to be available if they are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are recorded when the related fund liabilityis incurred.


Fund Balance/Net Position

Net position represents the difference between assets and liabilities reported for the governmentalactivities. Net position is reported as restricted when there are externally imposed restrictions.Unrestricted net position is net position that does not meet the definition of the classification previouslydescribed. When both restricted and unrestricted resources are available for use, it is the Authority’spolicy to use restricted resources first, and then unrestricted resources as they are needed. TheAuthority has no restricted net position.

The Authority follows the provisions of GASB Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions to classify fund balances for governmental funds into specificallydefined classifications. The classifications comprise a hierarchy based primarily on the extent to whichthe Authority is bound to honor constraints on the specific purposes for which amounts in the funds canbe spent. Fund balance classifications are described below:






10





Use of Estimates




Section 218.415, Florida Statutes, authorizes the Authority to invest in the Local Government SurplusFunds Trust Fund investment pool, Security and Exchange Commission (“SEC”) registered money marketfunds with the highest credit quality rating, interest bearing time deposits or savings accounts inqualified public depositories and direct obligations of the U.S. Treasury. The Authority had noinvestments during the year.


From time to time, the Authority has issued bonds to provide financial assistance to private sectorentities for the acquisition and construction of industrial and commercial facilities deemed to be in thepublic interest. The bonds are secured by the property financed and are payable solely from paymentsreceived on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquiredfacilities transfers to the private sector entity served by the bond issuance.


As of September 30, 2016, there were several bonds outstanding. The aggregate principal amountpayable and aggregate original issue amount could not be determined.


Schedule of Revenues, Expenditures and Changes in Fund BalanceBudget and Actual – General FundYear ended September 30, 2016

Budgeted Amounts


Revenues


Investment income 130 52 56

Total revenues 15,130 2,802 2,806

Expenditures


Operations 53,075 37,575 36,612


expenditures (37,945)$ (34,773)$ (33,806)

Fund balance, beginning of year 177,784

Fund balance, end of year 143,978$

Notes to Schedule:


accounting principles. Its preparation, adoption, and amendment is governed by the Authority

Members pursuant to Florida Statutes. The fund is the legal level of control.

11

MANAGEMENT LETTER

12


We have audited the financial statements of the St. Johns County Industrial Development Authority (the“Authority”), as of and for the year ended September 30, 2016, and have issued our report thereondated March 3, 2017. That report should be considered in conjunction with this management letter.



The Rules of the Auditor General require that we comment as to whether or not corrective actions havebeen taken to address findings and recommendations made in the preceding audit. If the audit findingsin the preceding audit report are uncorrected, we are required to identify those findings that were alsoincluded in the second preceding audit report. The Authority has no uncorrected prior audit findingsthat are required to be identified pursuant to the Rules of the Auditor General.

Financial Condition





13


As a dependent special district, the Authority’s activity is included in the annual financial report of St.John’s County. As required by the Rules of the Auditor General, we determined that the annual financialreport for the fiscal year ended September 30, 2016, filed with the Department of Financial Servicespursuant to Section 218.32, Florida Statutes, is in substantial agreement with the audit report for thefiscal year ended September 30, 2016.

Other Matters





14



We have audited, in accordance with the auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States, the financial statements of the St. Johns CountyIndustrial Development Authority (the “Authority”), a component unit of St. Johns County, Florida, as ofand for the year ended September 30, 2016, and the related notes to the financial statements, whichcollectively comprise the Authority’s basic financial statements, and have issued our report thereondated March 3, 2017.



A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detected and corrected on atimely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal controlthat is less severe than a material weakness, yet important enough to merit attention by those chargedwith governance.




15


As part of obtaining reasonable assurance about whether the Authority’s financial statements are freeof 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 andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed no instances of noncompliance or other matters thatare required to be reported under Government Auditing Standards.




16


To the MembersSt. Johns County Industrial Development Authority

We have examined the St. Johns County Industrial Development Authority’s (the “Authority”)compliance with the requirements of Section 218.415, Florida Statutes, Local Government InvestmentPolicies, during the year ended September 30, 2016. Management is responsible for the Authority’scompliance with those requirements. Our responsibility is to express an opinion on the Authority’scompliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Authority’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonablebasis for our opinion. Our examination does not provide a legal determination on the Authority’scompliance with specified requirements.






St. Johns County EducationalFacilities Authority

Audit Report

September 30, 2016

St. Johns County Educational Facilities Authority




BASIC FINANCIAL STATEMENTSStatement of Net Position and Governmental Fund Balance Sheet 6

Statement of Activities and Governmental Fund Revenues, Expendituresand Changes in Fund Balance 7






Schedule of Findings 17

Official’s Response to Auditor’s Comments

INDEPENDENT AUDITOR'S REPORT

1

To the MembersSt. Johns County EducationalFacilities Authority


We have audited the accompanying financial statements of the governmental activities and the generalfund of the St. Johns County Educational Facilities Authority (the “Authority”), a component unit of St.Johns County, Florida, as of and for the year ended September 30, 2016, and the related notes to thefinancial statements, which collectively comprise the Authority’s basic financial statements as listed inthe table of contents.









2

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities and the general fund of the Authority as ofSeptember 30, 2016, and the respective changes in financial position thereof for the year then ended inaccordance with accounting principles generally accepted in the United States of America.

Other Matters


Accounting principles generally accepted in the United States of America require that management’sdiscussion and analysis be presented to supplement the basic financial statements. Such information,although not a part of the basic financial statements, is required by the Governmental AccountingStandards Board, who considers it to be an essential part of financial reporting for placing the basicfinancial statements in an appropriate operational, economic, or historical context. We have appliedcertain limited procedures to the required supplementary information in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries ofmanagement about the methods of preparing the information and comparing the information forconsistency with management's responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express an opinionor provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.


In accordance with Government Auditing Standards, we have also issued our report dated April 4, 2017on our consideration of the Authority’s internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control overfinancial reporting and compliance and the results of that testing, and not to provide an opinion on theinternal control over financial reporting or on compliance. That report is an integral part of an auditperformed in accordance with Government Auditing Standards in considering the Authority’s internalcontrol over financial reporting and compliance.




3

General

The St. Johns County Educational Facilities Authority (the “Authority”) is a public corporation activatedin 2011 to assist institutions for higher education in the construction, financing, and refinancing ofprojects.

Proposed or existing higher education projects that seek public funding in the form of bonds arereviewed by the Authority to determine if they comply with the State of Florida Educational FacilitiesStatutes, offer a benefit to the County and that the proposed project is financially responsible. Once theAuthority determines that these criteria have been met, the project and the related bond issue arerecommended to the Board of County Commissioners for approval.





St. John's County Educational Facilities Authority



AssetsNon capital assets 4,413$ 4,588$

LiabilitiesCurrent liabilities 1,925 750



Program revenues

Charges for services $ $

Program expenses

Economic environment 1,350 1,337




Financial Information

As of September 30, 2016, the Authority had assets of $4,413. These assets consisted of cash deposited in

interest bearing accounts. Liabilities for the same period totaled $1,925 of accounts payable. The net position

at September 30, 2016 was $2,488.

The primary source of revenue for the Authority is generally bond issuance fees. For the year ended

September 30, 2016, there were no bonds issued and no related fees or other revenues.

Net Position

Change in Net Position

4



5


Due to the absence of board members, no meetings were held and no budget was adopted for fiscalyear 2015 16.

Economic Factors and Other Conditions of Future Significance

In early fiscal year 2016, the last remaining board member resigned and replacements have not yet beenappointed. Refer to Note 1, Summary of Significant Accounting Policies, Reporting Entity, for additionalinformation.

We are not currently aware of any other conditions that are expected to have a significant effect on theAuthority’s financial position or results of operations.


Questions concerning any of the information provided in this report or requests for additional financialinformation should be addressed to 2825 Lewis Speedway, Suite 104, St. Augustine, Florida.


Statement of Net Position and Governmental Fund Balance SheetSeptember 30, 2016

General Statement

Fund Adjustments of Net Position

AssetsCash 4,413$ $ 4,413$

Liabilities

Accounts payable 1,925$ 1,925

Fund balances

Unassigned 2,488 (2,488)

Total liabilities and fund balances 4,413$



6








Operations 1,350$ $ 1,350$

Program revenues

Charges for services




Fund balance/net position, beginning of year 3,838 3,838

Fund balance/net position, end of year 2,488$ $ 2,488$


7



8


Reporting Entity

The St. Johns County Educational Facilities Authority (the “Authority”) was activated as a Florida publiccorporation in accordance with the Florida Authority Law, Part ll of Chapter 243, Florida Statutes,following the adoption of an approving resolution (No. 2011 94, dated April 19, 2011) by the Board ofCounty Commissioners of St. Johns County, Florida (the “Board”). The purpose of the Authority is toassist institutions for higher education in the construction, financing, and refinancing of projects. TheAuthority is authorized to issue bonds to fulfill its corporate purpose in principal amounts specificallyauthorized by the Board.

The Board appoints the Authority Members, who serve a term ranging from one to five years. The Boardhas the power to remove a Member of the Authority from office without cause. For the entire 2014 15fiscal year, there was only one acting Member. During early fiscal year 2015 16 the last memberresigned and as of the date of our audit report, there are no active Authority board members, howeverthe county is currently advertising to fill the vacancies.

For financial reporting purposes the Authority is considered a component unit of St. Johns County.



Reporting Model

As a dependent special district, the Authority accounts for its activities using the governmental financialreporting model, and follows GASB Statement No. 34, Basic Financial Statements – and Management’sDiscussion and Analysis – for State and Local Governments, as amended.





9




The General Fund’s financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognized as soon asthey are both measurable and available. Revenues are considered to be available when they arecollectible within the current period or soon enough thereafter to pay liabilities of the current period.For this purpose, the Authority considers revenues to be available if they are collected within 60 days ofthe end of the current fiscal period. Expenditures generally are recorded when the related fund liabilityis incurred.


Fund Balance/Net Position

Net position represents the difference between assets and liabilities reported for the governmentalactivities. Net position is reported as restricted when there are externally imposed restrictions.Unrestricted net position is net position that does not meet the definition of the classification previouslydescribed. When both restricted and unrestricted resources are available for use, it is the Authority’spolicy to use restricted resources first, and then unrestricted resources as they are needed. TheAuthority has no restricted net position.

The Authority follows the provisions of GASB Statement No. 54, Fund Balance Reporting andGovernmental Fund Type Definitions to classify fund balances for governmental funds into specificallydefined classifications. The classifications comprise a hierarchy based primarily on the extent to whichthe Authority is bound to honor constraints on the specific purposes for which amounts in the funds canbe spent.






10






Use of Estimates




Section 218.415, Florida Statutes, authorizes the Authority to invest in the Local Government SurplusFunds Trust Fund investment pool, Security and Exchange Commission (“SEC”) registered money marketfunds with the highest credit quality rating, interest bearing time deposits or savings accounts inqualified public depositories and direct obligations of the U.S. Treasury. The Authority had noinvestments during the year.


From time to time, the Authority issues bonds to private sector entities for the acquisition, construction,rehabilitation and/or equipping of various academic buildings. The bonds are secured by the propertyfinanced and are payable solely from payments received on the underlying mortgage loans. Uponrepayment of the bonds, ownership of the acquired facilities transfers to the private sector entity servedby the bond issuance.



11

NOTE 3 – CONDUIT DEBT OBLIGATIONS (CONTINUED)


As of September 30, 2016, there was one series of bonds outstanding. The aggregate principal amountpayable could not be determined; however, the aggregate original issue amount was $10,000,000.

MANAGEMENT LETTER

12


We have audited the financial statements of the St. Johns County Educational Facilities Authority (the“Authority”), as of and for the year ended September 30, 2016, and have issued our report thereondated April 4, 2017. That report should be considered in conjunction with this management letter.



The Rules of the Auditor General require that we comment as to whether or not corrective actions havebeen taken to address findings and recommendations made in the preceding audit. If the audit findingsin the preceding audit report are uncorrected, we are required to identify those findings that were alsoincluded in the second preceding audit report. These requirements of the Rules of the Auditor Generalare addressed in the Schedule of Findings that accompanies this letter.

Financial Condition





13


As a dependent special district, the Authority’s activity is included in the annual financial report of St.Johns County. As required by the Rules of the Auditor General, we determined that the annual financialreport for the fiscal year ended September 30, 2016, filed with the Department of Financial Servicespursuant to Section 218.32, Florida Statutes, is in substantial agreement with the audit report for thefiscal year ended September 30, 2016.

Other Matters



Thank you for the cooperation and courtesies extended to us during the course of the audit. Please letus know if you have any questions or comments concerning this letter, our accompanying reports, orother matters.

St. Augustine, FloridaApril 4, 2017St Augustine Florida

14



We have audited, in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States, the financial statements of the governmentalactivities and the general fund of the St. Johns County Educational Facilities Authority (the “Authority”),a component unit of St. Johns County, Florida, as of and for the year ended September 30, 2016, and therelated notes to the financial statements, which collectively comprise the Authority’s basic financialstatements, and have issued our report thereon dated April 4, 2017.



Our consideration of internal control over financial reporting was for the limited purpose described inthe preceding paragraph of this section and was not designed to identify all deficiencies in internalcontrol that might be material weaknesses or significant deficiencies and therefore, materialweaknesses or significant deficiencies may exist that were not identified. However, as described in theaccompanying schedule of findings, we identified a deficiency in internal control that we consider to bea material weakness.

A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, to prevent, ordetect and correct misstatements on a timely basis. A material weakness is a deficiency, or acombination of deficiencies, in internal control, such that there is a reasonable possibility that a materialmisstatement of the entity’s financial statements will not be prevented, or detected and corrected on atimely basis. We consider the deficiency described in the accompanying schedule of findings as item2016 001 to be a material weakness.



15


As part of obtaining reasonable assurance about whether the Authority’s financial statements are freeof 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 andmaterial effect on the determination of financial statement amounts. However, providing an opinion oncompliance with those provisions was not an objective of our audit and, accordingly, we do not expresssuch an opinion. The results of our tests disclosed an instance of noncompliance required to be reportedunder Government Auditing Standards which is described in the accompanying schedule of findings asitem 2016 002.

The Authority’s Response to Findings

The Authority’s response to the findings identified in our audit is described in its accompanying letter ofresponse. The Authority’s response was not subjected to the auditing procedures applied in the audit ofthe financial statements and, accordingly, we express no opinion on it.




p g y

16



We have examined the St. Johns County Educational Facilities Authority’s (the “Authority”) compliancewith the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies,during the year ended September 30, 2016. Management is responsible for the Authority’s compliancewith those requirements. Our responsibility is to express an opinion on the Authority’s compliancebased on our examination.

Our examination was conducted in accordance with attestation standards established by the AmericanInstitute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidenceabout the Authority’s compliance with those requirements and performing such other procedures as weconsidered necessary in the circumstances. We believe that our examination provides a reasonablebasis for our opinion. Our examination does not provide a legal determination on the Authority’scompliance with specified requirements.







Schedule of Findings

17

2016 001 (Reported in previous audit report as item 2015 001.)

Condition – During the fiscal year 2015 16 and as of mid fiscal year 2016 17, there are noboard members to conduct business for the Authority and provide sufficient oversight,including approving invoices, bank reconciliations and financial statements, signing checksand adopting budgets. The county’s board of county commissioners, who appointsAuthority board members, is currently advertising to fill the vacancies.

Recommendation – Appoint board members to conduct business and provide oversight forthe Authority.

2016 002 Condition – Pursuant to Section 189.016 (3 5) Florida Statutes, the Authority is required toadopt a budget each fiscal year. Due to a lack of board members, the Authority was unableto hold meetings and conduct business, and as a result, expenditures made during the yearwere not regulated by an adopted budget.

Recommendation – Appoint board members to conduct business including adopting anannual budget.

st. johns county, florida auditor general ... rpts/2016 st...september 30, 2016 prepared by: clerk...

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