COUNTYOFESCAMBIAFLORIDApublic.escambiaclerk.com/Clerk/forms/cafr/CAFR_2005.pdf · ii 223 Palafox Place Pensacola, Florida 32502-5845 (850) 595-4845 FAX (850) 595-4798 January 31,

COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005

COUNTY OF ESCAMBIA FLORIDACOUNTY OF ESCAMBIA FLORIDA

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COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005

COMPREHENSIVE ANNUAL FINANCIAL REPORT ESCAMBIA COUNTY, FLORIDA

YEAR ENDED SEPTEMBER 30, 2005

TABLE OF CONTENTS

Page

INTRODUCTORY SECTION Title Page .......................................................................................................................................... i Letter of Transmittal ........................................................................................................................... ii - vi Certificate of Achievement ................................................................................................................. vii Organizational Charts ........................................................................................................................ viii – ix List of Officials.................................................................................................................................... x

FINANCIAL SECTION REPORT OF INDEPENDENT AUDITORS ....................................................................................... 1 – 2 MANAGEMENTS’ DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTARY INFORMATION)................................................................................................................................. 3 - 18 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets .................................................................................................................... 19 Statement of Activities ....................................................................................................................... 20 - 21 FUND FINANCIAL STATEMENTS Balance Sheet – Governmental Funds .............................................................................................. 22 Reconciliation of the Balance Sheet to the Statement of Net Assets ............................................... 23 Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................... 24 Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................... 25 Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual – General Fund, Disaster Recovery Fund, and Transportation and Drainage Fund ......... 26 - 28 Statement of Net Assets – Proprietary Funds ................................................................................... 29 Statement of Revenues, Expenses, and Changes in Net Assets – Proprietary Funds .................... 30 Statement of Cash Flows – Proprietary Funds ................................................................................. 31 - 32 Statement of Fiduciary Net Assets – Fiduciary Funds ...................................................................... 33

COMPREHENSIVE ANNUAL FINANCIAL REPORTESCAMBIA COUNTY, FLORIDA


TABLE OF CONTENTS

INTRODUCTORY SECTION

Title Page .......................................................................................................................................... iLetter of Transmittal ........................................................................................................................... ii - viCertificate of Achievement ................................................................................................................. viiOrganizational Charts ........................................................................................................................ viii — ixList of Officials .................................................................................................................................... x

FINANCIAL SECTION

REPORT OF INDEPENDENT AUDITORS ....................................................................................... 1 — 2

MANAGEMENTS’ DISCUSSION AND ANALYSIS (REQUIRED SUPPLEMENTARYINFORMATION) ................................................................................................................................. 3 - 18

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements

Statement of Net Assets .................................................................................................................... 19

Statement of Activities ....................................................................................................................... 20 - 21

FUND FINANCIAL STATEMENTS

Balance Sheet — Governmental Funds .............................................................................................. 22Reconciliation of the Balance Sheet to the Statement of Net Assets ............................................... 23Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................... 24Reconciliation of the Statement of Revenues Expenditures, and Changes in Fund

Balances of Governmental Funds to the Statement of Activities .................................................... 25Statement of Revenues, Expenditures, and Changes in Fund Balances — Budget to

Actual — General Fund, Disaster Recovery Fund, and Transportation and Drainage Fund ......... 26 - 28

Statement of Net Assets — Proprietary Funds ................................................................................... 29Statement of Revenues, Expenses, and Changes in Net Assets — Proprietary Funds .................... 30Statement of Cash Flows — Proprietary Funds ................................................................................. 31 - 32

Statement of Fiduciary Net Assets — Fiduciary Funds ...................................................................... 33



TABLE OF CONTENTS (CONTINUED)

Page Component Units Financial Statements Statement of Net Assets ................................................................................................................. 34 Statement of Activities ..................................................................................................................... 35 - 36 Notes to Financial Statements .......................................................................................................... 37 - 64 COMBINING FINANCIAL STATEMENTS Combining Balance Sheet - Non-major Governmental Funds ......................................................... 65 - 66 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds ..................................................................................................... 67 - 68 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Comparison – All Other Governmental Funds .................................................... 69 - 83 Combining Statement of Net Assets – Non-major Enterprise Funds ................................................ 84 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Non-major Enterprise Funds ........................................................................................................... 85 Combining Statement of Cash Flows – Non-major Enterprise Funds .............................................. 86 – 87 Combining Statement of Net Assets – Internal Service Funds ......................................................... 88 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Internal Service Funds .................................................................................................................... 89 Combining Statement of Cash Flows – Internal Service Funds ....................................................... 90 - 91 Combining Statement of Fiduciary Net Assets – Agency Funds ...................................................... 92 Statement of Changes in Assets and Liabilities – Agency Funds ..................................................... 93 - 94

STATISTICAL SECTION (UNAUDITED) Government-Wide Expenses by Function and Government-Wide Revenues................................... 95 General Government Revenue by Source – Last Ten Fiscal Years ................................................. 96 General Government Expenditures by Function – Last Ten Fiscal Years ........................................ 97 Schedule of Property Taxes Levied and Collected – Last Ten Fiscal Years .................................... 98 Assessed and Actual Value of Taxable Property – Last Ten Fiscal Years ....................................... 99 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years .................... 100 Direct Debt of County-wide Organizations ........................................................................................ 101 - 102 Special Assessment Collections – Last Ten Fiscal Years ................................................................ 103 Revenue Bond Coverage – Civic Center Enterprise Bond Funds – Last Ten Fiscal Years ............. 104 Demographic Statistics – Last Ten Fiscal Years .............................................................................. 105 Property Value, Construction, and Bank Deposits – Last Ten Fiscal Years ..................................... 106 Principal Taxpayers ........................................................................................................................... 107 Major Employers ............................................................................................................................... 108 Special Tax Collections Last Ten Fiscal Years ................................................................................. 109 Schedule of Insurance ...................................................................................................................... 110 - 117




Page

Component Units Financial StatementsStatement of Net Assets ................................................................................................................. 34Statement of Activities ..................................................................................................................... 35 - 36

Notes to Financial Statements .......................................................................................................... 37 - 64

COMBINING FINANCIAL STATEMENTS

Combining Balance Sheet - Non-major Governmental Funds ......................................................... 65 - 66Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —

Non-major Governmental Funds ..................................................................................................... 67 - 68Schedules of Revenues, Expenditures, and Changes in Fund Balances —

Budget to Actual Comparison — All Other Governmental Funds .................................................... 69 - 83

Combining Statement of Net Assets — Non-major Enterprise Funds ................................................ 84Combining Statement of Revenues, Expenses, and Changes in Net Assets —

Non-major Enterprise Funds ........................................................................................................... 85Combining Statement of Cash Flows — Non-major Enterprise Funds .............................................. 86 — 87

Combining Statement of Net Assets — Internal Service Funds ......................................................... 88Combining Statement of Revenues, Expenses, and Changes in Net Assets —

Internal Service Funds .................................................................................................................... 89Combining Statement of Cash Flows — Internal Service Funds ....................................................... 90 - 91

Combining Statement of Fiduciary Net Assets — Agency Funds ...................................................... 92

Statement of Changes in Assets and Liabilities — Agency Funds ..................................................... 93 - 94

STATISTICAL SECTION (UNAUDITED)

Government-Wide Expenses by Function and Government-Wide Revenues ................................... 95General Government Revenue by Source — Last Ten Fiscal Years ................................................. 96General Government Expenditures by Function — Last Ten Fiscal Years ........................................ 97Schedule of Property Taxes Levied and Collected — Last Ten Fiscal Years .................................... 98Assessed and Actual Value of Taxable Property — Last Ten Fiscal Years ....................................... 99Property Tax Rates — Direct and Overlapping Governments — Last Ten Fiscal Years .................... 100Direct Debt of County-wide Organizations ........................................................................................ 101 - 102Special Assessment Collections — Last Ten Fiscal Years ................................................................ 103Revenue Bond Coverage — Civic Center Enterprise Bond Funds — Last Ten Fiscal Years ............. 104Demographic Statistics — Last Ten Fiscal Years .............................................................................. 105Property Value, Construction, and Bank Deposits — Last Ten Fiscal Years ..................................... 106Principal Taxpayers ........................................................................................................................... 107Major Employers ............................................................................................................................... 108Special Tax Collections Last Ten Fiscal Years ................................................................................. 109Schedule of Insurance ...................................................................................................................... 110 - 117




Page

CONTINUING DISCLOSURE SECTION (UNAUDITED) PLEDGED REVENUES Summarized Schedule ...................................................................................................................... 118 Bob Sikes Toll Bridge Revenues ...................................................................................................... 119 Constitutional Gas Tax ...................................................................................................................... 120 Half-Cent Sales Tax .......................................................................................................................... 121 Tourist Development Tax .................................................................................................................. 122 Lease Revenues ............................................................................................................................... 123 OUTSTANDING BONDS Road Improvement Revenue Bonds, Series 1993B ......................................................................... 124 - 125 Sales Tax Revenue Refunding Bonds, Series 2002 ......................................................................... 126 - 127 Tourist Development Revenue Refunding Bonds, Series 2002 ....................................................... 128 - 129 Capital Improvement Revenue Bonds, Series 2002 ......................................................................... 130 - 131 OTHER COUNTY DEBT Summarized Statement ..................................................................................................................... 132 Sun Trust Bank Line of Credit ........................................................................................................... 133 City of Gulf Breeze Capital Improvement Bond, Series 1997 ........................................................... 134 City of Gulf Breeze Capital Improvement Bond, Series 1998 ........................................................... 135 City of Gulf Breeze Capital Improvement Bond, Series 1999B ........................................................ 136 City of Gulf Breeze Capital Improvement Bond, Series 1999C ........................................................ 137 City of Gulf Breeze Capital Improvement Bond, Series 2003............................................................ 138 State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ....................................................... 139 REFUNDED BONDS Schedule of Outstanding Refunded Debt ........................................................................................ 140 Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 ................................... 141 Solid Waste Disposal System Revenue Bonds, Series 1978 ........................................................... 142 Capital Improvement Refunding and Revenue Bonds, Series 1980-1 ............................................. 143 Special Obligation Bonds, Series 1980A .......................................................................................... 144 Capital Improvement Refunding Revenue Bonds, Series 1983 ....................................................... 145 Sales Tax Revenue Bonds, Series 1989A ........................................................................................ 146 Tourist Development Tax Revenue Bonds, Series 1992 .................................................................. 147 Road Improvement Revenue Bonds, Series 1993A ......................................................................... 148 Sales Tax Revenue Refunding Bonds, Series 1993.......................................................................... 149 ECONOMIC INDICATORS Per Capita Income – Comparison ..................................................................................................... 150 Employment by Industry .................................................................................................................... 151 Unemployment Rate ......................................................................................................................... 152 Florida Price Level Index ................................................................................................................... 153 Taxable Retail Sales ......................................................................................................................... 154 Visitors by Air .................................................................................................................................... 155 Comparison of Lodging and Restaurants ......................................................................................... 156 Age of Escambia County Population ................................................................................................ 157




CONTINUING DISCLOSURE SECTION (UNAUDITED)

PLEDGED REVENUESSummarized Schedule ...................................................................................................................... 118Bob Sikes Toll Bridge Revenues ...................................................................................................... 119Constitutional Gas Tax ...................................................................................................................... 120Half-Cent Sales Tax .......................................................................................................................... 121Tourist Development Tax .................................................................................................................. 122Lease Revenues ............................................................................................................................... 123

OUTSTANDING BONDSRoad Improvement Revenue Bonds, Series 1993B ......................................................................... 124 - 125Sales Tax Revenue Refunding Bonds, Series 2002 ......................................................................... 126 - 127Tourist Development Revenue Refunding Bonds, Series 2002 ....................................................... 128 - 129Capital Improvement Revenue Bonds, Series 2002 ......................................................................... 130 - 131

OTHER COUNTY DEBTSummarized Statement ..................................................................................................................... 132Sun Trust Bank Line of Credit ........................................................................................................... 133City of Gulf Breeze Capital Improvement Bond, Series 1997 ........................................................... 134City of Gulf Breeze Capital Improvement Bond, Series 1998 ........................................................... 135City of Gulf Breeze Capital Improvement Bond, Series 19998 ........................................................ 136City of Gulf Breeze Capital Improvement Bond, Series 19990 ........................................................ 137City of Gulf Breeze Capital Improvement Bond, Series 2003 ............................................................ 138State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ....................................................... 139

REFUNDED BONDSSchedule of Outstanding Refunded Debt ........................................................................................ 140Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 ................................... 141Solid Waste Disposal System Revenue Bonds, Series 1978 ........................................................... 142Capital Improvement Refunding and Revenue Bonds, Series 1980-1 ............................................. 143Special Obligation Bonds, Series 1980A .......................................................................................... 144Capital Improvement Refunding Revenue Bonds, Series 1983 ....................................................... 145Sales Tax Revenue Bonds, Series 1989A ........................................................................................ 146Tourist Development Tax Revenue Bonds, Series 1992 .................................................................. 147Road Improvement Revenue Bonds, Series 1993A ......................................................................... 148Sales Tax Revenue Refunding Bonds, Series 1993 .......................................................................... 149

ECONOMIC INDICATORSPer Capita Income — Comparison ..................................................................................................... 150Employment by Industry .................................................................................................................... 151Unemployment Rate ......................................................................................................................... 152Florida Price Level Index ................................................................................................................... 153Taxable Retail Sales ......................................................................................................................... 154Visitors by Air .................................................................................................................................... 155Comparison of Lodging and Restaurants ......................................................................................... 156Age of Escambia County Population ................................................................................................ 157


This section contains the following subsections:

TITLE PAGE

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT FOR

EXCELLENCE IN FINANCIAL REPORTING

ESCAMBIA COUNTY ORGANIZATIONAL CHARTS

LIST OF OFFICIALS



TITLE PAGE

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT FOREXCELLENCE IN FINANCIAL REPORTING

ESCAMBIA COUNTY ORGANIZATIONAL CHARTS

LIST OF OFFICIALS

i

COMPREHENSIVE ANNUAL FINANCIAL REPORT

ESCAMBIA COUNTY, FLORIDA

PREPARED BY

ERNIE LEE MAGAHA CLERK OF THE CIRCUIT COURT

FINANCE DEPARTMENT

Patricia L. Sheldon, CPA, CGFO, CPFO Administrator for Financial Services

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005

COMPREHENSIVE ANNUAL FINANCIAL REPORT


PREPARED BY

ERNIE LEE MAGAHACLERK OF THE CIRCUIT COURT

FINANCE DEPARTMENTPatricia L. Sheldon, CPA, CGFO, CPFOAdministrator for Financial Services


ii

223 Palafox Place Pensacola, Florida 32502-5845 (850) 595-4845 FAX (850) 595-4798 www.escambiaclerk.com

January 31, 2006 To the Honorable Members of the Board of County Commissioners and Citizens of Escambia County, Florida We are pleased to present the Comprehensive Annual Financial Report (CAFR) of Escambia County, Florida, for the fiscal year ended September 30, 2005. The report has been prepared in accordance with generally accepted accounting principles by the highly professional and dedicated staff of the Finance Department of the Clerk of the Circuit Court. The Clerk of the Circuit Court is mandated by the Constitution of the State of Florida to serve as the Chief Financial Officer of the County, and is responsible for both the accuracy of the presented data, and the completeness and fairness of the presentation, including all disclosures. We believe the data as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the County as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain a comprehensive understanding of the County’s financial activity have been included. This report consists of management’s representations concerning the finances of Escambia County, Florida. Consequently, to provide a reasonable basis for making these representations, management of Escambia County is responsible for establishing and maintaining an internal control structure designed to provide reasonable, but not absolute, assurance that the assets of the County are protected from loss, theft or misuse; reliability of financial records for preparing financial statements; and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. We believe that the County’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

The Comprehensive Annual Financial Report is required by Florida Statute 11.45 and is required to be audited by an independent firm of certified public accountants. The Board of County Commissioners has selected O'Sullivan Creel, LLP to perform this audit. The goal of the independent audit is to provide reasonable assurance that the financial statements of Escambia 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 management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for

ERNIE LEE MAGAHA CLERK OF THE CIRCUIT COURT

BRANCH OFFICES ARCHIVES AND RECORDS

JUVENILE DIVISION CENTURY

ARCHIVES AND RECORDS CHILD SUPPORT

CIRCUIT CIVIL CIRCUIT CRIMINAL

COUNTY CIVIL DOMESTIC RELATIONS

JURY ASSEMBLY JUVENILE

MENTAL HEALTH PROBATE TRAFFIC

WITNESS MANAGEMENT

COUNTY OF ESCAMBIA

OFFICE OF THE CLERK OF THE CIRCUIT COURT

CLERK TO THE BOARD OF COUNTY COMMISSIONERS

OFFICIAL RECORDS COUNTY TREASURY

AUDITOR

ERNIE LEE MAGAHA BRANCH OFFICESARCHIVES AND RECORDSCLERK OF THE CIRCUIT COURT JUVENILE DIVISIONCENTURY

ARCHIVES AND RECORDSCHILD SUPPORT

c.§é%?¥ERflilltAL COUNTY OF ESCAMBIADOMZEIETEETXEONS OFFICE OF THE

JURIU‘IEEFEB” CLERK OF THE CIRCUIT COURT Satfi'éi‘égflfié‘éltDEfiéMENTAL HEALTH

PROBATE OFFICIAL RECORDSTRAFFIC COUNTY TREASURY

WITNESS MANAGEMENT AUDITOR

January 31, 2006

TO the Honorable Members of the Board of CountyCommissioners and Citizens of Escambia County, Florida

We are pleased to present the Comprehensive Annual Financial Report (CAFR) of EscambiaCounty, Florida, for the fiscal year ended September 30, 2005. The repOIt has been prepared inaccordance with generally accepted accounting principles by the highly professional anddedicated staff of the Finance Department of the Clerk of the Circuit Court. The Clerk Of theCircuit COUIt is mandated by the Constitution of the State of Florida tO serve as the ChiefFinancial Officer Of the County, and is responsible for both the accuracy of the presented data,and the completeness and fairness of the presentation, including all disclosures. We believe thedata as presented is accurate in all material aspects; that it is presented in a manner designed tOfairly set forth the financial position and results of operations Of the County as measured by thefinancial activity Of its various funds; and that all disclosures necessary tO enable the reader tOgain a comprehensive understanding of the County’s financial activity have been included.

This report consists Of management’s representations concerning the finances Of EscambiaCounty, Florida. Consequently, to provide a reasonable basis for making these representations,management of Escambia County is responsible for establishing and maintaining an internalcontrol structure designed tO provide reasonable, but not absolute, assurance that the assets Ofthe County are protected from loss, theft or misuse; reliability of financial records for preparingfinancial statements; and maintaining accountability for assets. The concept Of reasonableassurance recognizes that the cost Of a control should not exceed the benefits likely tO bederived, and the evaluation of costs and benefits requires estimates and judgments bymanagement. We believe that the County’s internal accounting controls adequately safeguardassets and provide reasonable assurance Of proper recording of financial transactions.

‘ The Comprehensive Annual Financial Report is required by Florida Statute\ / 11.45 and is required tO be audited by an independent firm of certified public

/ accountants. The Board of County Commissioners has selected O'SullivanCreel, LLP to perform this audit. The goal of the independent audit is to

/\ provide reasonable assurance that the financial statements Of Escambia1 County are free of material misstatement. The independent audit involved

examining, on a test basis, evidence suppOIting the amounts and disclosures inthe financial statements; assessing the accounting principles used and significant estimatesmade by management; and evaluating the overall financial statement presentation. Theindependent auditor concluded, based upon the audit, that there was a reasonable basis for

3/

223 Palafox Place Pensacola, Florida 32502-5845(850) 595-4845 FAX (850) 595-4798 www.escambiaclerk.com

iii

rendering an unqualified opinion that Escambia County’s financial statements for the fiscal year ended September 30, 2005 are fairly presented in conformity with generally accepted accounting principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report. In addition to meeting the requirements set forth in state statutes, the audit was also designed to meet the requirements of the Federal 1996 Single Audit Act Amendments and the 2003 related OMB Circular A-133. The standards governing single audit engagements require the independent auditor to report on the government’s internal controls and compliance with legal requirements with special emphasis on the administration of federal awards. These reports are available in a separately issued report, available on file with the Clerk to the Board. GAAP requires 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. Escambia County’s MD&A can be found immediately following the report of the independent auditors. County Organization

Escambia County, located in the northwestern part of the state, was established July 21, 1821 as a non-charter government when the Provisional Governor Andrew Jackson signed an ordinance making the County one of the first two counties in Florida, the other being St. John's County. Escambia County encompasses approximately 661 square miles, or 420,480 acres, with an additional 64,000 acres of water area and serves a population of 304,731. Although northwest Florida has not

experienced the rapid growth that southern and central Florida has experienced, the area has grown significantly during the past two decades. There are two municipalities within the County, the City of Pensacola, the County seat, and the Town of Century. Pursuant to Florida Statutes, the legislative and policy-making powers are vested with the five-member Board of County Commissioners who is elected by district for four-year terms. The Chairman presides over the Board and is elected by the members annually. Separate powers for operation of specific functions of County government are vested with the five Constitutional Officers--Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and Tax Collector. The Board of County Commissioners’ responsibilities include: passing ordinances and resolutions, adopting the budget and levying a property tax on real and personal property, appointing boards and committees and hiring the County Administrator and County Attorney. The Clerk of the Circuit Court serves as the Chief Financial Officer for the Board of County Commissioners acting as accountant, auditor, recorder, the custodian of all County funds and ex-officio Clerk to the Board. The County Administrator is the chief administrative official of the County responsible for carrying out the policies of the Board and overseeing the day-to-day operations of the County. The County Attorney represents the County Commission and all other departments, divisions, boards, and offices in legal matters affecting the County. Escambia County provides a full range of services, including the construction and maintenance of highways, streets, and other infrastructure, sheriff and fire protection, health and social services, emergency medical services, landfill operations, mass transportation services and cultural and recreational programs. Certain employee services were provided through a legally separate Civil Service Board which was financially dependent on Escambia County but did not provide services exclusively for Escambia County. The Civil Service Board is reported separately within Escambia County’s financial statements at September 30, 2005. The Civil Service Board sunsetted September 30, 2005 and was dissolved. The Board of County Commissioners Human Resources Department absorbed all the duties of recruiting and hiring of personnel. The Santa Rosa Island Authority (SRIA) provides management services for Escambia County’s Beach Toll

rendering an unqualified opinion that Escambia County’s financial statements for the fiscal yearended September 30, 2005 are fairly presented in conformity with generally accepted accountingprinciples (GAAP). The independent auditor’s report is presented as the first component of thefinancial section of this report.

In addition to meeting the requirements set forth in state statutes, the audit was also designed tomeet the requirements of the Federal 1996 Single Audit Act Amendments and the 2003 relatedOMB Circular A-133. The standards governing single audit engagements require theindependent auditor to report on the government’s internal controls and compliance with legalrequirements with special emphasis on the administration of federal awards. These reports areavailable in a separately issued report, available on file with the Clerk to the Board.

GAAP requires that management provide a narrative introduction, overview, and analysis toaccompany 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 inconjunction with it. Escambia County’s MD&A can be found immediately following the report ofthe independent auditors.

County Organization

Escambia County, located in the northwestern part of the state, wasestablished July 21, 1821 as a non-charter government when theProvisional Governor Andrew Jackson signed an ordinance making theCounty one of the first two counties in Florida, the other being St. John'sCounty. Escambia County encompasses approximately 661 squaremiles, or 420,480 acres, with an additional 64,000 acres of water areaand serves a population of 304,731. Although northwest Florida has not

experienced the rapid growth that southern and central Florida has experienced, the area hasgrown significantly during the past two decades. There are two municipalities within the County,the City of Pensacola, the County seat, and the Town of Century.

Pursuant to Florida Statutes, the legislative and policy-making powers are vested with the five-member Board of County Commissioners who is elected by district for four-year terms. TheChairman presides over the Board and is elected by the members annually. Separate powers foroperation of specific functions of County government are vested with the five ConstitutionalOfficers--Clerk of the Circuit Court, Property Appraiser, Sheriff, Supervisor of Elections and TaxCollector. The Board of County Commissioners’ responsibilities include: passing ordinances andresolutions, adopting the budget and levying a property tax on real and personal property,appointing boards and committees and hiring the County Administrator and County Attorney. TheClerk of the Circuit Court serves as the Chief Financial Officer for the Board of CountyCommissioners acting as accountant, auditor, recorder, the custodian of all County funds and ex-officio Clerk to the Board. The County Administrator is the chief administrative official of theCounty responsible for carrying out the policies of the Board and overseeing the day-to-dayoperations of the County. The County Attorney represents the County Commission and all otherdepartments, divisions, boards, and offices in legal matters affecting the County.

Escambia County provides a full range of services, including the construction and maintenance ofhighways, streets, and other infrastructure, sheriff and fire protection, health and social services,emergency medical services, landfill operations, mass transportation services and cultural andrecreational programs. Certain employee services were provided through a legally separate CivilService Board which was financially dependent on Escambia County but did not provide servicesexclusively for Escambia County. The Civil Service Board is reported separately within EscambiaCounty’s financial statements at September 30, 2005. The Civil Service Board sunsettedSeptember 30, 2005 and was dissolved. The Board of County Commissioners HumanResources Department absorbed all the duties of recruiting and hiring of personnel. The SantaRosa Island Authority (SRIA) provides management services for Escambia County’s Beach Toll

iv

Facility and serves as the County’s leasing agent for property on Santa Rosa Island owned by the County. The County approves the SRIA’s annual budget and has veto power over decisions of the Authority. It too is reported separately within Escambia County’s financial statements. The Housing Finance Authority (HFA) is also presented separately within the County’s financial statements. Although the County appoints the members of the HFA’s board and must approve it’s budget, the HFA and the County are not substantially the same and the HFA does not provide services almost exclusively for the County. The Law Library is fiscally dependent on Escambia County therefore it is discretely presented in this report. For additional information on Escambia County’s Component Units, please refer to the Notes. Escambia County is committed to providing high levels of service to its residents, at the lowest possible cost, in order to minimize taxpayer burden. As required by Florida Statutes, Chapter 129, on an annual basis, the County must prepare and adopt a balanced budget. The annual budget serves as the foundation for Escambia County’s financial planning and control. The County adopts formal budgets for all funds prior to October 1 of each fiscal year. During the year the County Administrator approves intra-departmental budget amendments that do not change the fund total budget or change the personal services budget. The Board must approve budget amendments affecting personal services or reserve for contingencies. Supplemental budgets for revenues not anticipated must also receive Board approval. Encumbrance accounting is employed as an extension of formal budgetary integration in the General Fund, Special Revenue Funds and Capital Project Funds. Although appropriations lapse at year end, outstanding encumbrances are generally re-appropriated as a part of the following year's budget. The elected officials, funded as a part of the County's annual budget, maintain their own budgetary systems consistent with the requirements of state law. As demonstrated by the statements and schedules included in the financial section of this report, Escambia County continues to meet its responsibility for sound financial management. The County also prepares a Capital Improvements Program (CIP) annually. The CIP provides a planned and programmed approach to utilizing the County's financial resources in the most responsive and efficient manner to meet its service and facility needs. It serves as a five year "blue print" for the future of the community's capital projects. The first year of this "blueprint" serves as the annual capital budget for the County. Budget-to-actual comparisons are presented in this report for each governmental fund. The general fund and the major special revenues funds’ comparisons are included in the basic financial statement section. All other governmental funds’ budget-to-actual comparisons are included in the combining and individual statements and schedules section of this report. Local Economy Escambia County experienced a direct hit by Hurricanes Ivan (September 2004) and Dennis (July 2005) and has suffered effects from Hurricanes Katrina and Rita (August 2005). Hurricane damage has affected nearly 51,000 homes in Escambia County, a figure that represents nearly one-half on the homes in Escambia County, with nearly 6,000 of those being complete and total losses. Despite the destruction caused by these hurricanes, the residents and businesses of Escambia County are rebuilding their homes and the community. Although fiscal year 2005 was not adversely affected, projections at this point in time indicate a possible decrease in ad valorem revenues during fiscal year 2006 by as much as $15 million. This is mostly due to the loss of property and reduced values on the property tax assessment rolls taken on January 1, 2005. The County received $5 million from the State of Florida to replace some of the loss of ad valorem revenues. Sales tax dollars are strong and have increased due to the rebuilding efforts taking place in the County.

Facility and serves as the County’s leasing agent for property on Santa Rosa Island owned by theCounty. The County approves the SRIA’s annual budget and has veto power over decisions ofthe Authority. It too is reported separately within Escambia County’s financial statements. TheHousing Finance Authority (HFA) is also presented separately within the County’s financialstatements. Although the County appoints the members of the HFA’s board and must approveit’s budget, the HFA and the County are not substantially the same and the HFA does not provideservices almost exclusively for the County. The Law Library is fiscally dependent on EscambiaCounty therefore it is discretely presented in this report. For additional information on EscambiaCounty’s Component Units, please refer to the Notes.

Escambia County is committed to providing high levels of service to its residents, at the lowestpossible cost, in order to minimize taxpayer burden. As required by Florida Statutes, Chapter129, on an annual basis, the County must prepare and adopt a balanced budget. The annualbudget serves as the foundation for Escambia County’s financial planning and control.

The County adopts formal budgets for all funds prior to October 1 of each fiscal year. During theyear the County Administrator approves intra-departmental budget amendments that do notchange the fund total budget or change the personal services budget. The Board must approvebudget amendments affecting personal services or reserve for contingencies. Supplementalbudgets for revenues not anticipated must also receive Board approval. Encumbranceaccounting is employed as an extension of formal budgetary integration in the General Fund,Special Revenue Funds and Capital Project Funds. Although appropriations lapse at year end,outstanding encumbrances are generally re-appropriated as a part of the following year's budget.The elected officials, funded as a part of the County's annual budget, maintain their ownbudgetary systems consistent with the requirements of state law. As demonstrated by thestatements and schedules included in the financial section of this report, Escambia Countycontinues to meet its responsibility for sound financial management.

The County also prepares a Capital Improvements Program (CIP) annually. The CIP provides aplanned and programmed approach to utilizing the County's financial resources in the mostresponsive and efficient manner to meet its service and facility needs. It serves as a five year"blue print" for the future of the community's capital projects. The first year of this "blueprint"serves as the annual capital budget for the County.

Budget-to-actual comparisons are presented in this report for each governmental fund. Thegeneral fund and the major special revenues funds’ comparisons are included in the basicfinancial statement section. All other governmental funds’ budget-to—actual comparisons areincluded in the combining and individual statements and schedules section of this report.

Local Economy

Escambia County experienced a direct hit by Hurricanes Ivan (September 2004) and Dennis (July2005) and has suffered effects from Hurricanes Katrina and Rita (August 2005). Hurricanedamage has affected nearly 51,000 homes in Escambia County, a figure that represents nearlyone-half on the homes in Escambia County, with nearly 6,000 of those being complete and totallosses. Despite the destruction caused by these hurricanes, the residents and businesses ofEscambia County are rebuilding their homes and the community. Although fiscal year 2005 wasnot adversely affected, projections at this point in time indicate a possible decrease in ad valoremrevenues during fiscal year 2006 by as much as $15 million. This is mostly due to the loss ofproperty and reduced values on the property tax assessment rolls taken on January 1, 2005. TheCounty received $5 million from the State of Florida to replace some of the loss of ad valoremrevenues. Sales tax dollars are strong and have increased due to the rebuilding efforts takingplace in the County.

v

Efforts toward creating a positive business environment are paying off. The strong vitality of the area is the result of collaborative efforts taking place among local governments, other public organizations and the private sector. Although the property tax millage remained at 8.756 during fiscal year 2005, an increase in assessed property values allowed the County to realize an increase in ad valorem revenue from the previous fiscal year. The County continues to update capital improvement plans to adequately forecast long-term needs. A firm commitment to planning, together with enhanced economic development efforts and strong civic leadership should result in sufficient revenue growth to sustain the quality of life enjoyed by our residents and propel the area’s economy to new heights. Escambia County is somewhat insulated against a volatile marketplace through factors such as low unemployment and the high percentage of military personnel and retirees. The County population is projected to be 317,262 in the year 2010. Over 63% of the population is in the prime working age group of 18-64. The unemployment rate is at 3.6% and the estimated median household income for 2005 was $26,503. The building industry remains strong in Escambia County. This past year, 151 commercial building permits were issued with a value over $285 million and over 1,900 residential units were built. Goals and Objectives Management’s goals and objectives are to continue to provide infrastructure for future growth and sound fiscal management of County resources while maintaining the quality of life we enjoy here in Escambia County. Some examples of these goals and objectives are as follows: Increased efforts designed to encourage business development in the area Increased efforts designed to promote tourism to the area Road paving and improved drainage throughout the County Improve delivery of Neighborhood and Public Services to the highest level possible Efforts to capitalize on alternative revenue generation without increasing the tax burden

Cash Management

At the end of fiscal year 2005 the County's investment portfolio consisted primarily of federal instrumentalities discount notes, certificates of deposit, securities held by the Florida State Board of Administration Local Government Pool, a bank repurchase agreement,

and interest earning bank deposits. The Florida Statutes and the County's investment policy sets forth all criteria for approved investments; limits the percent of the total portfolio that can be in one category of investment; limits the percent of total portfolio that can be placed with only one institution; and the internal control procedures such as "delivery versus payment" and "custodial arrangements". This policy also requires monthly reporting of portfolio activity to the Board of County Commissioners by the Clerk of the Circuit Court and it provides for oversight by an investment advisory committee comprising volunteer citizens, the County Administrator, and the Clerk of the Circuit Court. The investments made by the Clerk of Court’s Finance Department earned an average yield of 2.77% and generated over $6.5 million in investment earnings for the fiscal year ending September 30, 2005. Risk Management Escambia County has established a risk management program to retain some risk of certain claims against the Board of County Commissioners, the Constitutional Officers, Civil Service

Efforts toward creating a positive business environment are paying off. The strong vitality of thearea is the result of collaborative efforts taking place among local governments, other publicorganizations and the private sector.

Although the property tax millage remained at 8.756 during fiscal year 2005, an increase inassessed property values allowed the County to realize an increase in ad valorem revenue fromthe previous fiscal year. The County continues to update capital improvement plans toadequately forecast long-term needs. A firm commitment to planning, together with enhancedeconomic development efforts and strong civic leadership should result in sufficient revenuegrowth to sustain the quality of life enjoyed by our residents and propel the area’s economy tonew heights. Escambia County is somewhat insulated against a volatile marketplace throughfactors such as low unemployment and the high percentage of military personnel and retirees.

The County population is projected to be 317,262 in the year 2010. Over 63% of the populationis in the prime working age group of 18-64. The unemployment rate is at 3.6% and the estimatedmedian household income for 2005 was $26,503.

The building industry remains strong in Escambia County. This past year, 151 commercialbuilding permits were issued with a value over $285 million and over 1,900 residential units werebuilt.

Goals and Objectives

Management’s goals and objectives are to continue to provide infrastructure for future growth andsound fiscal management of County resources while maintaining the quality of life we enjoy herein Escambia County. Some examples of these goals and objectives are as follows:

’9 ’9 Increased efforts designed to encourage business development in the areaIncreased efforts designed to promote tourism to the areaRoad paving and improved drainage throughout the CountyImprove delivery of Neighborhood and Public Services to the highest level possibleEfforts to capitalize on alternative revenue generation without increasing the tax burden

’9 ’9’9 ’9

’9 ’9’9 ’9

Cash Management

;'3- firm...“ At the end of fiscal year 2005 the County's investment portfolio' Q ' consisted primarily of federal instrumentalities discount notes,

4.} . ‘ Qt certificates of deposit, securities held by the Florida State Board of. mama. , Administration Local Government Pool, a bank repurchase agreement,

nd interest earning bank deposits. The Florida Statutes and the County's investment policy setsforth all criteria for approved investments; limits the percent of the total portfolio that can be in onecategory of investment; limits the percent of total portfolio that can be placed with only oneinstitution; and the internal control procedures such as "delivery versus payment" and "custodialarrangements". This policy also requires monthly reporting of portfolio activity to the Board ofCounty Commissioners by the Clerk of the Circuit Court and it provides for oversight by aninvestment advisory committee comprising volunteer citizens, the County Administrator, and theClerk of the Circuit Court. The investments made by the Clerk of Court’s Finance Departmentearned an average yield of 2.77% and generated over $6.5 million in investment earnings for thefiscal year ending September 30, 2005.

Risk Management

Escambia County has established a risk management program to retain some risk of certainclaims against the Board of County Commissioners, the Constitutional Officers, Civil Service

vi

Board, and the Santa Rosa Island Authority, including workers compensation and casualty and property. The County is protected by sovereign immunity for all liability claims in excess of $100,000. Umbrella coverage is purchased for property claims in excess of $100,000 and worker's compensation claims in excess of $550,000. Additional information on Escambia County’s risk management activity can be found in the notes to the financial statements. Pension Benefits Escambia County provides pension benefits for its employees through a multiple employer, cost sharing defined benefit pension plan managed by the Florida State Board of Administration. Participating employer contributions are based on statewide rates developed through actuarial analysis. Escambia County has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payment based on the actuarial estimates. Additional information on Escambia County’s pension arrangements can be found in the notes to the financial statements. Awards and Acknowledgments

The Government Finance Officers Association (GFOA) awarded Escambia County the Certificate of Achievement for Excellence in Financial Reporting for 23 of the past 24 years (did not apply in 1994). In order to be awarded a Certificate of Achievement, Escambia County must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report meets the Certificate of Achievement Program's standards and it will be submitted to the GFOA for consideration for the award. In addition, Escambia County also received the GFOA’s Distinguished Budget Presentation Award for its Annual Budget for fiscal year ended 2004. This is the tenth consecutive year that Escambia County has received this award. In order to qualify for this award, Escambia County’s budget document was judged to be proficient in several categories, including a policy document, a financial plan, an operations guide, and a communications device. This report is a product of the hard work and dedication of the Finance Department of the Clerk of the Circuit Court of Escambia County as Auditor and Accountant of the Board of County Commissioners. We would like to express our appreciation to Arlene Curb, Administrative Assistant, and all members of the department who assisted and contributed to the preparation of this report. We appreciate the support and cooperation of the Board of County Commissioners and the departments that serve under them and thank the auditing firm of O'Sullivan Creel, LLP for their guidance. Respectfully submitted, Ernie Lee Magaha Patricia L. Sheldon Ernie Lee Magaha Patricia L. Sheldon, CPA, CGFO, CPFO Clerk of the Circuit Court Administrator for Financial Services

Board, and the Santa Rosa Island Authority, including workerscompensation and casualty and property. The County is protected bysovereign immunity for all liability claims in excess of $100,000. Umbrellacoverage is purchased for property claims in excess of $100,000 andworker's compensation claims in excess of $550,000. Additionalinformation on Escambia County’s risk management activity can be found in the notes to thefinancial statements.

Pension Benefits

Escambia County provides pension benefits for its employees through a multiple employer, costsharing defined benefit pension plan managed by the Florida State Board of Administration.Participating employer contributions are based on statewide rates developed through actuarialanalysis. Escambia County has no obligation in connection with employee benefits offeredthrough this plan beyond its annual contractual payment based on the actuarial estimates.

Additional information on Escambia County’s pension arrangements can be found in the notes tothe financial statements.

Awards and Acknowledgments

The Government Finance Officers Association (GFOA) awardedEscambia County the Certificate of Achievement for Excellence inFinancial Reporting for 23 of the past 24 years (did not apply in 1994). Inorder to be awarded a Certificate of Achievement, Escambia Countymust publish an easily readable and efficiently organized comprehensiveannual financial report. This report must satisfy both generally acceptedaccounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our currentcomprehensive annual financial report meets the Certificate of Achievement Program's standardsand it will be submitted to the GFOA for consideration for the award.

In addition, Escambia County also received the GFOA’s Distinguished Budget PresentationAward for its Annual Budget for fiscal year ended 2004. This is the tenth consecutive year thatEscambia County has received this award. In order to qualify for this award, Escambia County’sbudget document was judged to be proficient in several categories, including a policy document,a financial plan, an operations guide, and a communications device.

This report is a product of the hard work and dedication of the Finance Department of the Clerk ofthe Circuit Court of Escambia County as Auditor and Accountant of the Board of CountyCommissioners. We would like to express our appreciation to Arlene Curb, AdministrativeAssistant, and all members of the department who assisted and contributed to the preparation ofthis report. We appreciate the support and cooperation of the Board of County Commissionersand the departments that serve under them and thank the auditing firm of O'Sullivan Creel, LLPfor their guidance.

Respectfully submitted,

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Ernie Lee Magaha Patricia L. Sheldon, CPA, CGFO, CPFOClerk of the Circuit Court Administrator for Financial Services

vi

vii

Certificate ofAchievementfor Excellencein FinancialReporting

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Citizens of Escambia County

Supervisor Of

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Tax Collector

Property Appraiser

Board of County Commissioners

(BOCC)

Sheriff

Clerk of the Circuit Court

County Administrator*

County Attorney

BOCC Finance

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viii

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Finance

ix

IADMINISTRATIVE SERVICES DEPARTMENTW—IOfiice of Public Information 8. Communication

THE CITIZENS OF ESCAMBIA COUNTY

IBOARD OF COUNTY COMMISSIONERS

IEOUNTY ADMINISTRATOR I ICOUNTY ATTORNEYI

D‘fioe c.Iansge11e*:& EudgecEfioe cf P'-:pe—.y' Msnagsn'ent

Contraztua EeruicesC. '.'i: IC'.en1erECAT=ub 0 Heath Llni'.

Office of Purchasing

Corrrrunty RelationsTcursl =ror‘iccio"

Human Resources DepartmentEm:o'ee E-snioss St BenefitsCl‘fioa of Risk Mange-neat

Economic Development

|PUBLIC WORKS 3L LAND MANAGEMENT AGENCY COMMUNITY SERVICES 8. PUBLIC SAFETY AGENCY

Assistant County Administrator Assistant County Administrator

—INFORMATION RESOURCES

.AdrrinistraflonI-Iscworx' Se'uizesG ESysten's Eeruioes

— ROAD DEPARTMENTAzmnist'atcnFIee: I~‘ain:e'.3n:eRoses & E'idgesRos: =i'iscnFue Dist-ibuticr'

— PLANNING AND ENGINEERINGAd'n "istrstiznConsimctcn Managerren:Cel.e|o:rrent ServicesLo"g Range Pann "gTemnix‘ Eem'ossTraf-‘c Engineering

—BU|LDING INSPECTIONS DEPARTMENT

Acrrinist'alicnContraztor Li:e*sngPsn'ritin; 3 Inspectio's

—SOLID WASTE MANAGEMENT

.i-firrinislrationEnforcewiE't

Engineer '9 3. Enuiro'rnenlal Quality_an:FIII lCkera'jo'sRecycling

3:»:e

Ad'n 'is'.r5'.i:nCcrrn'un 7y Redevelcpn'en:En'.lir-:nrren:a QualityEscarrbia 3:i| and Water Ccrrsewatio' :Islric‘.heig'bor'cod E"'.EIT.I'IEE Fou'daiion. "c.Nosqu'o Manager-19":Home Ross-mes

—ENL'|RONIIIENTAL HEALTH

—FAC|LITIES MANAGEMENT DEPARTMENT—A-:n‘inist'au'n:n_Cusb:di3|—DCa'J.‘—I.Iai':snan:e—'eIso:m'n.ni:atioi-rs S. '4'. tie;

—PARKS AND RECREATION DEPARTMENT.A-an‘inist'alicn S: Spec al Sweets—E-:uesirian Center—L-3ks Stine Carrpgrcun:—I-‘Iai snares rd Capital 'np'cwerrents—F'.e:rr:-3'.-:n and Steo'al Sew-:93

_C0hI.lUNIT‘r' SERVICES DEPARTMENT—.-‘-1:lr1in-stra'.io"—-Lm3n Assistaws—=ub c Sec-3| Services

—PLIBLIC SAFETY DEPARTMENT.AdrrinistrafionCmrnu"ioaficnsEn'isngE-"c',I In‘ansgemE-"tEn'isngE-"c',I Ned-:3 EenicesEME Cpenatcns.Anirral Rnalicn & Contra

—EJ(TENSIDN SERVICES

— NEIGHBORHOOD 3. ENVIRONMENTAL SERVICES DEPARTMENT

x

COUNTY COMMISSIONERS

D.M. “Mike” Whitehead, District 1 J.W. “Bill” Dickson, District 2 – Chair

Marie K. Young, District 3 - Vice Chair Thomas G. “Tom” Banjanin, District 4

Kevin W. White, District 5

OTHER ELECTED OFFICIALS

Ernie Lee Magaha, Clerk of the Circuit Court Ron McNesby, Sheriff

Janet Holley, Tax Collector Chris Jones, Property Appraiser

David Stafford, Supervisor of Elections

OTHER OFFICIALS

George Touart, County Administrator Janet Lander, County Attorney

COUNTY COMMISSIONERS

D.M. “Mike” Whitehead, District 1J.W. “Bill” Dickson, District 2 — Chair

Marie K. Young, District 3 - Vice ChairThomas G. “Tom” Banjanin, District 4

Kevin W. White, District 5

OTHER ELECTED OFFICIALS

Ernie Lee Magaha, Clerk of the Circuit CourtRon McNesby, Sheriff

Janet Holley, Tax CollectorChris Jones, Property Appraiser

David Stafford, Supervisor of Elections

OTHER OFFICIALS

George Touart, County AdministratorJanet Lander, County Attorney

FINANCIAL SECTION This section contains the following subsections: REPORT OF INDEPENDENT AUDITORS

MANAGEMENT’S DISCUSSION AND ANALYSIS BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS

FINANCIAL SECTION


REPORT OF INDEPENDENT AUDITORS

MANAGEMENT’S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

FUND FINANCIAL STATEMENTS

O’SULLIVAN CREEL, LLrColtiiiutl Public Accountants & Consultants

3H1 Soulh iiiiyicn St - Suite It)” ' Pensacola i-L 32503

REPORT OF INDEPENDENT AUDiTORS

Honorabie Board of County ConnnissionersEscambia County, Florida

We have audited the accompanying financiai statements of the govennnental activities, thebusiness-type activities, the aggregate discreteiy presented component units, each major fund,and the aggregate remaining fund information of Escarnbia County, Florida, as of and for theyear ended September 30, 2005, which collectively comprise the County’s basic financialstatements as listed in the table of contents. These financial statements are the responsibility ofEscambia County, Florida’s management, Our responsibility is to express opinions on thesefinanciai statements based on our audit. We did not audit the financial statements of thefoilowing component units, as of and for the year ended September 30, 2005, which statementsreflect total assets and totai revenues as displayed below:

Total Total Type ofAssets Revenues Component Unit

Escamhia County HousingFinance Authority 5 6,919,558 $ 2,254,671 Business Type Activities-Discrete

Santa Rosa Island Authority $34,794,560 $ 5,092,194 Business Type Activities~Disctete

Those financial statements were audited by other auditors whose reports have been furnished tous, and our opinion, insofar as it relates to the amounts included for the component units in thebusiness—type activities component unit coiumn, is based solely on the reports of the otherauditors.

We conducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards appiicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. These standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes consideration ofinternal control over financial reporting as a basis for designing audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the County’s internal control over financial reporting. Accordingly, we expressno such opinion. An audit also includes examining, on a test basis, evidence suppozting theamounts and disclosures in the financial statements, assessing the accounting principies used andsignificant estimates made by management, as welt as evaiuating the overail financial statementpresentation. We believe that our audit and the reports of other auditors provide a reasonablebasis for our opinions.

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In our opinion, based on our audit and the reports of other auditors, the financial statementsreferred to above, present fairly, in all material respects, the respective financial position of thegovernmental activities, the business-type activities, the aggregate discretely presentedcomponent units, each major fund, and the aggregate remaining fund information of EscambiaCounty, Florida, as of September 30, 2005, and the respective changes in financiai position andcash flows, where appiicable, thereof and the respective budgetary comparison for the general,disaster recovery, and transportation and drainage funds for the year then ended in conformitywith accounting principles generally accepted in the United States of America,

in accordance with Government Auditing Standards, we have also issued our report datedJanuary 27, 2006 on our consideration of Escambia County, Florida’s internal control overfinancial 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 thescope of our testing of internal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or oncompliance, That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards and should be considered in assessing the results of our audit,

The management’s discussion and anaiysis on pages 3 through 18 is not a required part of thebasic financial statements but is supplementary information required by accounting principlesgenerally accepted in the United States of America. We have applied certain limited procedures,which consisted principally of inquiries of management regarding the methods of measurementand presentation of the required supplementary information. However, we did not audit theinformation and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise Escambia County, Florida’s basic financial statements, The accompanyingintroductory section, combining and individual fund financial statements, statistical section, andcontinuing disclosure section are presented for purposes of additional analysis and are not arequired part of the basic financial statements, The combining and individual fund financialstatements have been subjected to the auditing procedures applied in the audit of the basicfinancial statements and, in our opinion, are fairly stated in ail material respects in relation to thebasic financial statements taken as a whole, The introductory section, statistical section, andcontinuing disclosure section have not been subjected to the auditing procedures applied in theaudit of the basic financial statements, and, accordingly, we express no opinion on them

rim did} (.00January 27, 2006

3

Management’s Discussion and Analysis As fiscal managers of Escambia County, we offer readers of Escambia County’s financial statements this narrative overview and analysis of the financial activities of Escambia County for the fiscal year ended September 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found within this report.

Financial Highlights The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by

$452,816,896 for fiscal year 2005. Of this amount, $7,255,301 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. Unrestricted net assets decreased $31,787,992 from the previous year.

The County’s total net assets this fiscal year increased $49,483,011 from the previous year with

an increase of $46,844,241 resulting from governmental activities and an increase of $2,638,770 resulting from business-type activities.

At September 30, Escambia County’s governmental funds reported combined ending fund

balances of $147,683,316 an increase of $17,009,934 in comparison with the prior year. Of this amount, $50,037,717 remains in the various fund types of the County as unreserved.

The General Fund reported an unreserved fund balance of $40,697,524; an increase from last

fiscal year of $21,630,294. Escambia County’s total bonded debt, leases and loans decreased $13,924,278 from the

previous fiscal year. No new notes, leases or bonds were entered into, therefore principal repayments account for the decrease.

Governmental Funds’ revenues increased $224,926,737 or 90% over the prior fiscal year.

Federal Emergency Management Agency (FEMA) dollars and insurance reimbursements paid to the County due to Hurricanes Ivan and Dennis account for 82% of the increase, while increased sales tax and property tax revenues account for an additional 8% of the increase.

Governmental funds’ expenditures for fiscal year 2005 experienced a 81.8% increase in spending

mainly due to hurricane related expenditures across all areas of public safety, physical environment, and culture and recreation.

Interest rates continued to rise over the last fiscal year, resulting in increased interest earnings for

the County. The County’s average interest rate rose from 1.41% in 2004 to 2.77% in 2005.

Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Escambia County’s basic financial statements. Escambia County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Management’s Discussion and Analysis

As fiscal managers of Escambia County, we offer readers of Escambia County’s financial statements thisnarrative overview and analysis of the financial activities of Escambia County for the fiscal year endedSeptember 30, 2005. We encourage readers to consider the information presented here in conjunctionwith additional information that we have furnished in our letter of transmittal, which can be found withinthis report.

Financial Highlights

v The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by$452,816,896 for fiscal year 2005. Of this amount, $7,255,301 (unrestricted net assets) may beused to meet the government’s ongoing obligations to citizens and creditors. Unrestricted netassets decreased $31,787,992 from the previous year.

no The County’s total net assets this fiscal year increased $49,483,011 from the previous year withan increase of $46,844,241 resulting from governmental activities and an increase of $2,638,770resulting from business-type activities.

so At September 30, Escambia County’s governmental funds reported combined ending fundbalances of $147,683,316 an increase of $17,009,934 in comparison with the prior year. Of thisamount, $50,037,717 remains in the various fund types of the County as unreserved.

v The General Fund reported an unreserved fund balance of $40,697,524; an increase from lastfiscal year of $21,630,294.

v Escambia County’s total bonded debt, leases and loans decreased $13,924,278 from theprevious fiscal year. No new notes, leases or bonds were entered into, therefore principalrepayments account for the decrease.

v Governmental Funds’ revenues increased $224,926,737 or 90% over the prior fiscal year.Federal Emergency Management Agency (FEMA) dollars and insurance reimbursements paid tothe County due to Hurricanes Ivan and Dennis account for 82% of the increase, while increasedsales tax and property tax revenues account for an additional 8% of the increase.

so Governmental funds’ expenditures for fiscal year 2005 experienced a 81.8% increase in spendingmainly due to hurricane related expenditures across all areas of public safety, physicalenvironment, and culture and recreation.

v Interest rates continued to rise over the last fiscal year, resulting in increased interest earnings forthe County. The County’s average interest rate rose from 1.41% in 2004 to 2.77% in 2005.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to Escambia County’s basic financialstatements. Escambia County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. Thisreport also contains other supplementary information in addition to the basic financial statementsthemselves.

4

Government-Wide Financial Statements Government-wide financial statements are designed to provide a broad overview of the financial position of Escambia County and are similar to private-sector financial statements. They include a statement of net assets and a statement of activities. The Statement of Net Assets shows the County’s assets less its liabilities as of September 30, 2005. The difference between these assets and liabilities is reported as net assets. Changes in net assets over time may be helpful in indicating an improving or deteriorating financial position. The Statement of Activities presents information showing how the net assets changed during the most recent fiscal year. The statement presents all underlying events giving rise to the change, regardless of the timing of the related cash flows. Some included items, such as accounts payable or earned but unused vacation leave, will produce changes in cash in a future fiscal period. Both government-wide statements distinguish functions of Escambia County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). Governmental activities reported in the statements include general government, public safety, physical environment, transportation, economic environment, human services, culture and recreation, and court related functions. Major business activities in Escambia County include landfill operations, civic center operations, and the economic development and industrial park operations. Other business activities include inspections and emergency medical services (ambulance services). The government-wide financial statements include not only Escambia County itself (known as the “primary” government), but also the Santa Rosa Island Authority, the Housing Finance Authority, the Escambia County Law Library, and the Civil Service Board, all legally separate entities for which Escambia County is financially accountable. Financial information for these component units is reported separately from the financial information for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Like other state and local governments, Escambia County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All funds of Escambia County government can be divided into three categories: governmental, proprietary and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions as those reported in the government-wide statement of net assets and statement of activities. However, unlike the government-wide financial statements, governmental fund financial statements focus on events that produce near-term inflows and outflows of spendable resources as well as on the balances of spendable resources available at the end of the fiscal year and is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating Escambia County’s near-term financing requirements and available resources. By comparing functions between the two sets of statements for governmental funds and governmental activities, readers may better understand the long-term impact of the government’s near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison. Governmental funds individually presented in Escambia County’s statements include five major funds, the General Fund, the Disaster Recovery Fund, the Transportation and Drainage Fund, the Debt Service Fund, and the Local Option Sales Tax Fund. Although there are many smaller governmental funds in Escambia County’s government, they have been presented in a total column termed as “other non-major

Government-Wide Financial Statements

Government-wide financial statements are designed to provide a broad overview of the financial positionof Escambia County and are similar to private-sector financial statements. They include a statement ofnet assets and a statement of activities.

The Statement of Net Assets shows the County’s assets less its liabilities as of September 30, 2005.The difference between these assets and liabilities is reported as net assets. Changes in net assets overtime may be helpful in indicating an improving or deteriorating financial position.

The Statement of Activities presents information showing how the net assets changed during the mostrecent fiscal year. The statement presents all underlying events giving rise to the change, regardless ofthe timing of the related cash flows. Some included items, such as accounts payable or earned butunused vacation leave, will produce changes in cash in a future fiscal period.

Both government-wide statements distinguish functions of Escambia County that are principallysupported by taxes and intergovernmental revenues (governmental activities) from other functions thatare intended to recover all or a significant portion of their costs through user fees and charges (business-type activities).

Governmental activities reported in the statements include general government, public safety, physicalenvironment, transportation, economic environment, human services, culture and recreation, and courtrelated functions. Major business activities in Escambia County include landfill operations, civic centeroperations, and the economic development and industrial park operations. Other business activitiesinclude inspections and emergency medical services (ambulance services). The government-widefinancial statements include not only Escambia County itself (known as the “primary” government), butalso the Santa Rosa Island Authority, the Housing Finance Authority, the Escambia County Law Library,and the Civil Service Board, all legally separate entities for which Escambia County is financiallyaccountable. Financial information for these component units is reported separately from the financialinformation for the primary government itself.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have beensegregated for specific activities or objectives. Like other state and local governments, Escambia Countyuses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Allfunds of Escambia County government can be divided into three categories: governmental, proprietaryand fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions asthose reported in the government-wide statement of net assets and statement of activities. However,unlike the government-wide financial statements, governmental fund financial statements focus on eventsthat produce near-term inflows and outflows of spendable resources as well as on the balances ofspendable resources available at the end of the fiscal year and is a narrower focus than the government-wide financial statements. Such information may be useful in evaluating Escambia County’s near-termfinancing requirements and available resources.

By comparing functions between the two sets of statements for governmental funds and governmentalactivities, readers may better understand the long-term impact of the government’s near term financingdecisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,expenditures and changes in fund balances provide a reconciliation to facilitate this comparison.

Governmental funds individually presented in Escambia County’s statements include five major funds, theGeneral Fund, the Disaster Recovery Fund, the Transportation and Drainage Fund, the Debt ServiceFund, and the Local Option Sales Tax Fund. Although there are many smaller governmental funds inEscambia County’s government, they have been presented in a total column termed as “other non-major

5

governmental funds.” Combining statements for these other governmental funds have been presented in the “Combining Statements and Schedules” section of this report. Escambia County adopts an annual appropriated budget for all its governmental funds. Budgetary comparison statements and schedules have been provided for these funds to demonstrate budgetary compliance. Proprietary Funds. Escambia County maintains and presents two different types of proprietary funds--enterprise and internal service. Enterprise funds report, in detail, the same information presented as business-type activities in the government-wide financial statements for landfill operations, inspections, ambulance and emergency medical services, civic center, and industrial parks. Inspections and ambulance are presented in one total column but may be separately reviewed in the combining statements elsewhere in the report. The internal service fund is an accounting mechanism to accumulate and allocate costs internally for Escambia County’s government. The County uses several internal service funds to account for the risk financing activities for the County’s insurance program. The risk management program is established to retain some risk of certain claims including worker’s compensation and casualty and property insurance, as well as accumulate certain compensated absences liabilities. The internal service fund is presented in one total column in the Proprietary Funds’ financial statements but may be separately reviewed in the combining statements elsewhere in the report. Fiduciary Funds. Escambia County uses fiduciary agency funds to account for resources held for the benefit of parties outside of county government. Although these funds are presented in the fund financial statements, they do not appear in the government-wide financial statements because the resources of these agency funds are not available to support Escambia County’s own programs. Agency funds are unlike all other fund types in that agency funds report only assets and liabilities. They do however, use the accrual basis of accounting to recognize receivables and payables. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in both the government-wide and fund financial statements. Other Information. Combining and individual statements and schedules referred to earlier, which present more detailed views of nonmajor funds used in governmental and proprietary funds, includes schedules for nonmajor special revenue funds, capital project funds, enterprise funds, internal service funds, and agency funds. Additional information about the County is found under the Statistical and Continuing Disclosure sections of this report.

Government-Wide Financial Analysis This is the fourth fiscal year that the County has reported under the “total” approach to governmental accounting, promulgated by the GASB with its Statement No. 34 model. Comparative data for fiscal years ending September 30, 2005 and 2004 are included in the analysis.

governmental funds.” Combining statements for these other governmental funds have been presented inthe ”Combining Statements and Schedules” section of this report.

Escambia County adopts an annual appropriated budget for all its governmental funds. Budgetarycomparison statements and schedules have been provided for these funds to demonstrate budgetarycompliance.

Proprietary Funds. Escambia County maintains and presents two different types of proprietary funds--enterprise and internal service.

Enterprise funds report, in detail, the same information presented as business-type activities in thegovernment-wide financial statements for landfill operations, inspections, ambulance and emergencymedical services, civic center, and industrial parks. Inspections and ambulance are presented in onetotal column but may be separately reviewed in the combining statements elsewhere in the report.

The internal service fund is an accounting mechanism to accumulate and allocate costs internally forEscambia County’s government. The County uses several internal service funds to account for the riskfinancing activities for the County’s insurance program. The risk management program is established toretain some risk of certain claims including worker’s compensation and casualty and property insurance,as well as accumulate certain compensated absences liabilities. The internal service fund is presented inone total column in the Proprietary Funds’ financial statements but may be separately reviewed in thecombining statements elsewhere in the report.

Fiduciary Funds. Escambia County uses fiduciary agency funds to account for resources held for thebenefit of parties outside of county government. Although these funds are presented in the fund financialstatements, they do not appear in the government-wide financial statements because the resources ofthese agency funds are not available to support Escambia County’s own programs. Agency funds areunlike all other fund types in that agency funds report only assets and liabilities. They do however, usethe accrual basis of accounting to recognize receivables and payables.

Notes to the Financial Statements. The notes provide additional information that is essential to a fullunderstanding of the data provided in both the government-wide and fund financial statements.

Other Information. Combining and individual statements and schedules referred to earlier, whichpresent more detailed views of nonmajor funds used in governmental and proprietary funds, includesschedules for nonmajor special revenue funds, capital project funds, enterprise funds, internal servicefunds, and agency funds. Additional information about the County is found under the Statistical andContinuing Disclosure sections of this report.

Government-Wide Financial Analysis

This is the fourth fiscal year that the County has reported under the ”total” approach to governmentalaccounting, promulgated by the GASB with its Statement No. 34 model. Comparative data for fiscalyears ending September 30, 2005 and 2004 are included in the analysis.

6

The overall financial position of the County improved in both fiscal years 2005 and 2004. As noted earlier, changes in net assets over time can be one of the best and most useful indicators of the County’s financial position. Escambia County’s increase in net assets for the fiscal years ending September 30, 2005 and 2004 amounted to $49,483,011 and $21,237,018, respectively. Overall, the County experienced an increase in net assets of 12.3%. Escambia County’s growth rate continued during fiscal year 2005; the County’s unemployment rate remained steady and continues to remain below the national and state average. This trend supports a positive fiscal outlook for Escambia County. As in the prior year, at the end of the fiscal year 2005, the County as a whole, is able to report positive balances in all three categories of net assets. The County’s unrestricted net assets at September 30, 2005 decreased $31,787,992 from 2004. This decrease is directly attributable to the $30 million interfund loan from the LOST Fund to the Disaster Recovery Fund. Cash flow needs during the hurricane recovery precipitated the need for an in-flux of available cash from the LOST Fund while waiting for FEMA dollars. Net assets are restricted in order to cover the advance which will be repaid during Fiscal Year 2006 after receipt of all the FEMA and State funding for their portion of the disaster recovery programs. The County’s restricted net assets increased from 2004 by $57,830,426. Fifty-one percent (51%) of this increase is caused by the interfund advance described above. The remaining 49% of the increase is due mainly to the increase in encumbrances for hurricane related recovery projects, as well as the ongoing master courthouse complex project. Unrestricted net assets are County resources that may be used to meet the County’s ongoing obligations to citizens and creditors while restricted net assets are resources subject to external restriction. Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery and equipment, as a percentage of net assets, amounts to 77% and 80% at September 2005, and 2004, respectively. These asset values are presented less any outstanding debt related to the acquisition and accumulated depreciation of those assets. The County uses capital assets to provide services to the citizens and consequently these assets are not available for future spending. Although our investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

Escambia County, Florida Net Assets

Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 Current and other assets $251,600,464 $179,785,581 $26,948,625 $17,430,465 $278,549,089 $197,216,046 Capital assets 437,583,744 426,095,530 45,662,537 48,137,197 483,246,281 474,232,727 Total assets 689,184,208 605,881,111 72,611,162 65,567,662 761,795,370 671,448,773 Long-term liabilities 202,868,493 220,159,483 16,203,371 11,277,116 219,071,864 231,436,599 Other liabilities 86,828,693 33,078,847 3,077,917 3,599,442 89,906,610 36,678,289 Total liabilities 289,697,186 253,238,330 19,281,288 14,876,558 308,978,474 268,114,888 Net assets: Invested in capital assets net of related debt 304,720,076 279,785,705 43,195,920 44,689,714 347,915,996 324,475,419 Restricted 97,645,599 39,815,173 0 0 97,645,599 39,815,173 Unrestricted (2,878,653) 33,041,903 10,133,954 6,001,390 7,255,301 39,043,293

$399,487,022 $352,642,781 $53,329,874 $50,691,104 $452,816,896 $403,333,885

Current and other assetsCapital assets

Total assets

Long-term liabilitiesOther liabilitiesTotal liabilities

Net assets:Invested in capital assets

net of related debtRestrictedUnrestricted

Escambia County, FloridaNet Assets

GovernmentalActivities

Business-typeActivities Total

2005 2004 2005 2004 2005 2004

$251,600,464437,583,744

$179,785,581426,095,530

$26,948,62545,662,537

$17,430,46548,137,197

$278,549,089483,246,281

$197,216,046474,232,727

689,184,208 605,881,111 72,611,162 65,567,662 761,795,370 671,448,773

202,868,49386,828,693

220,159,48333,078,847

16,203,3713,077,917

11,277,1163,599,442

219,071,86489,906,610

231,436,59936,678,289

289,697,186

304,720,07697,645,599(2,878,653)

253,238,330

279,785,70539,815,17333,041,903

19,281,288

43,195,9200

10,133,954

14,876,558

44,689,7140

6,001,390

308,978,474

347,915,99697,645,599

7,255,301

268,114,888

324,475,41939,815,17339,043,293

$399,487,022 $352,642,781 $53,329,874 $50,691,104 $452,816,896 $403,333,885

The overall financial position of the County improved in both fiscal years 2005 and 2004. As notedearlier, changes in net assets over time can be one of the best and most useful indicators of the County’sfinancial position. Escambia County’s increase in net assets for the fiscal years ending September 30,2005 and 2004 amounted to $49,483,011 and $21,237,018, respectively. Overall, the Countyexperienced an increase in net assets of 12.3%. Escambia County’s growth rate continued during fiscalyear 2005; the County’s unemployment rate remained steady and continues to remain below the nationaland state average. This trend supports a positive fiscal outlook for Escambia County.

As in the prior year, at the end of the fiscal year 2005, the County as a whole, is able to report positivebalances in all three categories of net assets. The County’s unrestricted net assets at September 30,2005 decreased $31,787,992 from 2004. This decrease is directly attributable to the $30 million interfundloan from the LOST Fund to the Disaster Recovery Fund. Cash flow needs during the hurricane recoveryprecipitated the need for an in-flux of available cash from the LOST Fund while waiting for FEMA dollars.Net assets are restricted in order to cover the advance which will be repaid during Fiscal Year 2006 afterreceipt of all the FEMA and State funding for their portion of the disaster recovery programs. TheCounty’s restricted net assets increased from 2004 by $57,830,426. Fifty-one percent (51%) of thisincrease is caused by the interfund advance described above. The remaining 49% of the increase is duemainly to the increase in encumbrances for hurricane related recovery projects, as well as the ongoingmaster courthouse complex project. Unrestricted net assets are County resources that may be used tomeet the County’s ongoing obligations to citizens and creditors while restricted net assets are resourcessubject to external restriction.

Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery andequipment, as a percentage of net assets, amounts to 77% and 80% at September 2005, and 2004,respectively. These asset values are presented less any outstanding debt related to the acquisition andaccumulated depreciation of those assets. The County uses capital assets to provide services to thecitizens and consequently these assets are not available for future spending. Although our investment incapital assets is reported net of related debt, it should be noted that the resources needed to repay thisdebt must be provided from other sources, since the capital assets themselves cannot be used toliquidate these liabilities.

7

(50,000,000)

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

2005 2004 2005 2004

Gover nmental Activi ties Business-Type Activi ties

Net Capi tal Assets

Restr icted Net Assets

Unr estr icted Net Assets

Cash and investment accounts of the County’s funds increased a total of $20,144,690 from the previous year, increasing $17,114,417 of that amount in the current asset category and increasing $3,030,273 in the restricted asset category. Increased sales tax and ad-valorem revenues were the major source of the positive cash accumulations. A comparison of current unrestricted assets as compared to current unrestricted liabilities for both governmental and business-type activities can be a good indication of the County’s ability to meet its current and existing operational responsibilities. The ratios for both years are as follows:

Escambia County, Florida Comparison of Current Unrestricted Assets and Liabilities (in thousands)

Governmental Business-type Activities Activities Fiscal year ending September 30, 2005: Current unrestricted assets $249,630 $20,433 Current unrestricted liabilities $36,743 $2,543 Ratio of current assets to current liabilities 6.79 8.03 Fiscal year ending September 30, 2004: Current unrestricted assets $177,748 $13,932 Current unrestricted liabilities $33,006 $3,218 Ratio of current assets to current liabilities 5.39 4.33

350.000, 000 -

300.000, 000 -

250.000, 000 -

200.000, 000 -

150,000,000 -

100,000,000 ,

50.000, 000 ,

I_| l—l

(50,000,000) .

2005 ' 2004

Governmental Activities Busi ness-TypeActi vitia

D Net Capilal AssetsI Restricted Net AssetsU Unrestricted Net Assets

Cash and investment accounts of the County’s funds increased a total of $20,144,690 from the previousyear, increasing $17,114,417 of that amount in the current asset category and increasing $3,030,273 inthe restricted asset category. Increased sales tax and ad-valorem revenues were the major source of thepositive cash accumulations.

A comparison of current unrestricted assets as compared to current unrestricted liabilities for bothgovernmental and business-type activities can be a good indication of the County’s ability to meet itscurrent and existing operational responsibilities. The ratios for both years are as follows:

Escambia County, FloridaComparison of Current Unrestricted Assets and Liabilities (in thousands)

Fiscal year ending September 30, 2005:

Current unrestricted assetsCurrent unrestricted liabilitiesRatio of current assets to current liabilities

Fiscal year ending September 30, 2004:

Current unrestricted assetsCurrent unrestricted liabilitiesRatio of current assets to current liabilities


Business-typeActivities

$249,630$36,743

6.79

$177,748$33,006

5.39

$20,433$2,543

8.03

$13,932$3,218

4.33

8

The main factor for the increase in governmental-type liabilities is the continuing activity across all funds due to Hurricanes Ivan and Dennis. At September 30, 2005, there were a number of invoices being processed for payment for which checks were not cut until October 2005. The County continues, however, to maintain healthy ratios as noted above which indicates more than adequate cash flows of Escambia County.

Escambia County, Florida Changes In Net Assets

Year Ended September 30, 2005 Governmental Business-type Activities Activities Totals 2005 2004 2005 2004 2005 2004 Revenues: Program Revenues: Charges for Services $55,181,470 $48,231,562 $37,337,824 $28,137,451 $92,519,294 $76,369,013 Operating Grants and Contributions 212,135,132 14,699,665 337 408 212,135,469 14,700,073 Capital Grants and Contributions 6,715,361 16,878,811 379,170 2,980,413 7,094,531 19,859,224 General Revenues: Property Taxes 98,901,932 85,558,122 0 0 98,901,932 85,558,122 Other Taxes 79,231,162 68,252,393 0 0 79,231,162 68,252,393 Other 29,371,016 22,589,675 1,324,500 1,445,901 30,695,516 24,035,576 Total Revenues 481,536,073 256,210,228 39,041,831 32,564,173 520,577,904 288,774,401 Expenses: General Government 39,400,122 30,841,180 0 0 39,400,122 30,841,180 Public Safety 319,042,002 129,147,683 0 0 319,042,002 129,147,683 Physical Environment 2,306,914 1,081,449 0 0 2,306,914 1,081,449 Transportation 46,601,198 48,510,758 0 0 46,601,198 48,510,758 Economic Environment 9,115,413 12,049,668 0 0 9,115,413 12,049,668 Human Services 4,662,761 4,706,530 0 0 4,662,761 4,706,530 Culture/Recreation 5,497,253 4,179,058 0 0 5,497,253 4,179,058 Interest on Long-Term Debt 7,850,023 7,517,482 0 0 7,850,023 7,517,482 Solid Waste 0 0 13,931,979 8,411,321 13,931,979 8,411,321 Building Inspections 0 0 3,354,100 3,306,029 3,354,100 3,306,029 Ambulance Service 0 0 13,011,213 11,760,637 13,011,213 11,760,637 Civic Center 0 0 5,712,799 5,244,904 5,712,799 5,244,904 Industrial Parks 0 0 609,116 780,684 609,116 780,684 Total Expenses 434,475,686 238,033,808 36,619,207 29,503,575 471,094,893 267,537,383 Increase (Decrease) in Net Assets before Transfers 47,060,387 18,176,420 2,422,624 3,060,598 49,483,011 21,237,018 Transfers (216,146) 1,310,394 216,146 (1,310,394) 0 0 Increase (Decrease) in Net Assets 46,844,241 19,486,814 2,638,770 1,750,204 49,483,011 21,237,018 Net Assets, beginning 352,642,781 333,155,967 50,691,104 48,940,900 403,333,885 382,096,867

Net Assets, ending $399,487,022 $352,642,781 $53,329,874 $50,691,104 $452,816,896 $403,333,885

The main factor for the increase in governmental-type liabilities is the continuing activity across all fundsdue to Hurricanes Ivan and Dennis.processed for payment for which checks were not cut until October 2005.

At September 30, 2005, there were a number of invoices being

The County continues, however, to maintain healthy ratios as noted above which indicates more thanadequate cash flows of Escambia County.

Escambia County, FloridaChanges In Net Assets

Year Ended September 30, 2005

Governmental Business-typeActivities Activities Totals

Revenues:Program Revenues:

Charges for ServicesOperating Grants and

ContributionsCapital Grants and

ContributionsGeneral Revenues:

Property TaxesOther Taxes

Other

Total Revenues

Expenses:General GovernmentPublic SafetyPhysical EnvironmentTransportationEconomic EnvironmentHuman ServicesCulture/RecreationInterest on Long-Term DebtSolid WasteBuilding InspectionsAmbulance ServiceCivic CenterIndustrial Parks

Total Expenses

Increase (Decrease) in Net Assetsbefore Transfers

TransfersIncrease (Decrease) in Net AssetsNet Assets, beginning

Net Assets, ending

2005 2004 2005 2004 2005 2004

$55,181,470

212,135,132

6,715,361

98,901,93279,231,16229,371,016

$48,231,562

14,699,665

16,878,811

85,558,12268,252,39322,589,675

$37,337,824

337

379,170

00

1,324,500

$28,137,451

408

2,980,413

00

1,445,901

$92,519,294

212,135,469

7,094,531

98,901,93279,231,16230,695,516

$76,369,013

14,700,073

19,859,224

85,558,12268,252,39324,035,576

481,536,073 256,210,228 39,041,831 32,564,173 520,577,904 288,774,401

39,400,122319,042,002

2,306,91446,601,198

9,115,4134,662,7615,497,2537,850,023

OO

OO

O

30,841,180129,147,683

1,081,44948,510,75812,049,6684,706,5304,179,0587,517,482

00

00

0

00

00

00

00

13,931,9793,354,100

13,011,2135,712,799

609,116

OO

OO

OO

OO

8,411,3213,306,029

11,760,6375,244,904

780,684

39,400,122319,042,002

2,306,91446,601,198

9,115,4134,662,7615,497,2537,850,023

13,931,9793,354,100

13,011,2135,712,799

609,116

30,841,180129,147,683

1,081,44948,510,75812,049,6684,706,5304,179,0587,517,4828,411,3213,306,029

11,760,6375,244,904

780,684434,475,686

47,060,387(216,146)

238,033,808

18,176,4201,310,394

36,619,207

2,422,624216,146

29,503,575

3,060,598(1,310,394)

471,094,893

49,483,0110

267,537,383

21,237,0180

46,844,241352,642,781

19,486,814333,155,967

2,638,77050,691,104

1,750,20448,940,900

49,483,011403,333,885

21,237,018382,096,867

$399,487,022 $352,642,781 $53,329,874 $50,691,104 $452,816,896 $403,333,885

9

Governmental Activities Overall, increased revenues and increased expenses over fiscal year 2004 can be noted in the governmental activity in fiscal year 2005. As noted in the Financial Highlights, governmental expenditures increased due to the devastating effect on Escambia County by two major hurricanes. Fiscal year 2005 shows a 147% increase in public safety related expenses, 28% in the general government category, 32% in the culture and recreation category, and a 113% increase in the physical environment category. These increased costs reflects the County’s commitment to achieve a successful recovery from the recent hurricanes as well as continue to manage the basic needs of our growing population. As mentioned above, governmental revenue activity increased due to the continued growth of the County. The County’s population increased 1.3% in this fiscal year and 1.2% in fiscal year 2004. Population is projected to be 317,262 in the year 2010 as the County continues to grow and expand. Offset by increases in FEMA and State intergovernmental revenues, these overall increased costs resulted in an increase in governmental net assets of $46,844,241 from last year’s net assets increase of $19,486,814.

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$25,000,000

$50,000,000

$75,000,000

$100,000,000

$125,000,000

$150,000,000

$175,000,000

$200,000,000

$225,000,000

$250,000,000

$275,000,000

$300,000,000

$325,000,000

$350,000,000

Dol

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Governmental Activities - Expenses and Program RevenuesFor the Fiscal Year 2005

ExpensesProgram Revenues

Governmental Activities

Overall, increased revenues and increased expenses over fiscal year 2004 can be noted in thegovernmental activity in fiscal year 2005. As noted in the Financial Highlights, governmentalexpenditures increased due to the devastating effect on Escambia County by two major hurricanes.Fiscal year 2005 shows a 147% increase in public safety related expenses, 28% in the generalgovernment category, 32% in the culture and recreation category, and a 113% increase in the physicalenvironment category. These increased costs reflects the County’s commitment to achieve a successfulrecovery from the recent hurricanes as well as continue to manage the basic needs of our growingpopulation.

As mentioned above, governmental revenue activity increased due to the continued growth of the County.The County’s population increased 1.3% in this fiscal year and 1.2% in fiscal year 2004. Population isprojected to be 317,262 in the year 2010 as the County continues to grow and expand.

Offset by increases in FEMA and State intergovernmental revenues, these overall increased costsresulted in an increase in governmental net assets of $46,844,241 from last year’s net assets increase of$19,486,814.

Governmental Activities - Expenses and Program Revenues$350,000,000 For the Fiscal Year 2005

$325,000,000—/\

$300,000,000 — \

$275,000,000 2 \

$250,000,000 i \

$225,000,000 i \

$200,000,000 2 \

$175,000,000 * \

Dol

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$150,000,000 * \

$125,000,000 ,/\

$100,000,000 4/\ EIExpenses\ I Program Revenues

$75,000,000 ,/\

$50,000,000 —

$25,000,000 4 Ci I

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10

Governmental Activities - Revenue by SourceFor the Fiscal Year 2005

Charges for Services12%

Operating grants and contributions45%

Capital grants and contributions1%

Property taxes21%

Unrestricted interest1%

Tourist development taxes1%

State shared revenue3%

Sales taxes13%

Sale of assets0%

Miscellaneous revenues0%

Gas taxes3%

Business-type Activities Business-type activities increased the County’s net assets by $2,638,770 for the fiscal year 2005 as compared to an increase of $1,750,204 for fiscal year 2004. Key elements of difference between the years can be explained as follows: The Solid Waste Fund experience a 57% increase in charges for services as a result of additional

usage of the landfill for the construction and vegetative debris that had to be disposed of after the hurricanes.

As a direct correlation with the increased use of the landfill, additional cell capacity had to be

opened in order to handle the demand. This necessitated a revised engineering estimate of future landfill maintenance and closure costs. As a result of the revised estimate, the Solid Waste Fund expensed an additional $4,708,059 in fiscal 2005 over fiscal 2004 to fund the Department of Environmental Protection required landfill closure liability.

The Inspections Fund experienced a 101% increase in licenses and permits revenues directly

attributable to the rebuilding and reconstruction activities for both commercial and residential following the wake of Hurricanes Ivan and Dennis.

Governmental Activities - Revenue by SourceFor the Fiscal Year 2005

Unreslricted inleresl1 "/n

Sale of assets0%

Miscellaneous revenues

Gas laxes3%

SI l h eda68 ar revenue Charges for ServicesSales laxes

13%

Tourisl developmenl laxes1 "/n

Properly laxes21 "/n


Capilal grants and conlributions1 %

Business-type Activities

Business-type activities increased the County’s net assets by $2,638,770 for the fiscal year 2005 ascompared to an increase of $1,750,204 for fiscal year 2004. Key elements of difference between theyears can be explained as follows:

The Solid Waste Fund experience a 57% increase in charges for services as a result of additionalusage of the landfill for the construction and vegetative debris that had to be disposed of after thehurricanes.

As a direct correlation with the increased use of the landfill, additional cell capacity had to beopened in order to handle the demand. This necessitated a revised engineering estimate offuture landfill maintenance and closure costs. As a result of the revised estimate, the Solid WasteFund expensed an additional $4,708,059 in fiscal 2005 over fiscal 2004 to fund the Department ofEnvironmental Protection required landfill closure liability.

The Inspections Fund experienced a 101% increase in licenses and permits revenues directlyattributable to the rebuilding and reconstruction activities for both commercial and residentialfollowing the wake of Hurricanes Ivan and Dennis.

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$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000

$10,000,000$11,000,000$12,000,000$13,000,000$14,000,000

Solid Waste Civic Center Inspections Ambulance EconomicDevelopment

Business-type ActivitiesExpenses and Program Revenues

For the Fiscal Year 2005

ExpensesProgram Revenues

Business-type ActivitiesRevenues by Source


Charges for services74%



Licenses and permits18%

Franchise fees4%

Interest revenues1%

Other1%

Business-type ActivitiesExpenses and Program Revenues


$14,000,000 7$13,000,000 7$12,000,000 7$11,000,000 7$10,000,000 7

$9,000,000 7$8,000,000 7$7,000,000 7$6,000,000 7

El ExpensesI Program Revenues

$5,000,000 7$4,000,000 7$3,000,000 7$2,000,000 7$1,000,000 7 a

$0 | l l

Solid Waste Civic Center Inspections Ambulance EconomicDevelopment

\\\\

\\\\

\\\\

\

Business-type ActivitiesRevenues by Source


Other1%

Interest revenues1%

Franchise fees4%

Licenses and permits18%


Operating grants and contributions0% Charges for services

74%

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Financial Analysis of Escambia County’s Funds As noted earlier, Escambia County employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. Governmental funds focus on providing information on near-term inflows, outflows, and balances of spendable resources. In assessing Escambia County’s financing requirements, unreserved fund balance is a particularly useful measure of net resources available for spending at the end of the fiscal year. The governmental fund types include the general fund, special revenue, debt service, and capital projects funds. As of September 30, 2005, Escambia County governmental funds reported combined fund balances of $147,683,316, an increase of $17,009,934 over prior year balances. Governmental funds reserved $57,378,757 of fund balance to meet current commitments in the next fiscal year, $1,365,316 for inventory, $30,138,295 for advances made to other funds, and $8,763,231 to meet debt service requirements next fiscal year. Major Fund Information (in Thousands) Transportation Local General Disaster and Debt Option Sales Fund Recovery Drainage Service Tax (LOST) Fiscal Year 2005 Revenues and other sources $165,665 $196,649 $21,827 $19,965 $63,841 Expenditures and other sources 144,290 208,087 20,034 19,720 37,784

Increase (decrease) in fund balance $21,375 ($11,438) $1,793 $245 $26,057

Fiscal Year 2004 Revenues and other sources $143,905 $11,789 $18,489 $17,285 $32,836 Expenditures and other sources 141,579 9,122 21,505 16,954 23,111

Increase (decrease) in fund balance $2,326 $2,667 ($3,016) $331 $9,725

The General Fund is the chief operating fund of the County. At September 30, 2005, total fund balance in the general fund was $41,625,058 of which $40,697,524 was unreserved. As a measure of the general fund’s liquidity, a comparison of both total and unreserved fund balances compared to total fund expenditures shows percentages of 29.2% and 28.6%, respectively. The fund balances of the County’s General Fund increased by $21,374,772 during the current fiscal year. Key factors in this increase are as follows: Even though the millage rate remained constant at 8.756 mills, the County experienced an

increase in property tax revenues of $13,343,810 due to an increase in assessed/taxable property values.

Total revenues increased 16% from fiscal year 2004 while expenditures increased 1% from fiscal

year 2004. Transfer activity from the general fund increased 7%, with increased transfers going to the Mass

Transit Fund, the CRA Fund, and the Capital Improvement Fund.

Financial Analysis of Escambia County’s Funds

As noted earlier, Escambia County employs fund accounting to ensure and demonstrate compliance withfinance-related legal requirements.

Governmental Funds. Governmental funds focus on providing information on near-term inflows,outflows, and balances of spendab/e resources. In assessing Escambia County’s financing requirements,unreserved fund balance is a particularly useful measure of net resources available for spending at theend of the fiscal year. The governmental fund types include the general fund, special revenue, debtservice, and capital projects funds.

As of September 30, 2005, Escambia County governmental funds reported combined fund balances of$147,683,316, an increase of $17,009,934 over prior year balances. Governmental funds reserved$57,378,757 of fund balance to meet current commitments in the next fiscal year, $1,365,316 forinventory, $30,138,295 for advances made to other funds, and $8,763,231 to meet debt servicerequirements next fiscal year.

Major Fund Information (in Thousands)Transportation Local

General Disaster and Debt Option SalesFund Recovery Drainage Service Tax (LOST)

Fiscal Year 2005Revenues and other sources $165,665 $196,649 $21,827 $19,965 $63,841Expenditures and other sources 144,290 208,087 20,034 19,720 37,784

Increase (decrease) in fund balance $21,375 ($11,438) $1,793 $245 $26,057

Fiscal Year 2004Revenues and other sources $143,905 $11,789 $18,489 $17,285 $32,836Expenditures and other sources 141,579 9,122 21,505 16,954 23,111

Increase (decrease) in fund balance $2,326 $2,667 ($3,016) $331 $9,725

The General Fund is the chief operating fund of the County. At September 30, 2005, total fund balancein the general fund was $41,625,058 of which $40,697,524 was unreserved. As a measure of the generalfund’s liquidity, a comparison of both total and unreserved fund balances compared to total fundexpenditures shows percentages of 29.2% and 28.6%, respectively. The fund balances of the County’sGeneral Fund increased by $21,374,772 during the current fiscal year. Key factors in this increase are asfollows:

v Even though the millage rate remained constant at 8.756 mills, the County experienced anincrease in property tax revenues of $13,343,810 due to an increase in assessed/taxableproperty values.

V Total revenues increased 16% from fiscal year 2004 while expenditures increased 1% from fiscalyear 2004.

v Transfer activity from the general fund increased 7%, with increased transfers going to the MassTransit Fund, the CRA Fund, and the Capital Improvement Fund.

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The Other Major Governmental Funds include the Disaster Recovery Fund, Transportation and Drainage Fund, Debt Service Fund, and the Local Option Sales Tax (LOST) Fund. Data for these funds is presented above for fiscal years 2005 and 2004. The Disaster Recovery Fund was established to account for all the financing provided from various State and Federal grants, such as the Federal Emergency Management Agency (FEMA). The County also receives various insurance reimbursements through this fund. Escambia County was struck by Hurricane Ivan (a Category 3 hurricane) in September 2004 and Hurricane Dennis in July 2005. Both hurricanes caused major and widespread destruction across Escambia County. The County’s recovery efforts and FEMA reimbursements are tracked in this fund. At September 30, 2005, there were reimbursable expenditures of over $65 million due from Federal and State sources. Taxes are a major source of revenue for both the Transportation and Drainage Fund and the LOST Fund. Gas taxes are used by the Transportation Fund for the construction and maintenance of roads in the County. The Local Option Sales Tax (LOST) imposed on Escambia County is used by the LOST Fund to acquire and construct capital projects within the County. Revenues and expenditures in the Transportation and Drainage Fund appear to remain stable over the two-year period. LOST Fund expenditures have increase 60% this fiscal year as compared to fiscal year 2004 mainly attributable to the completion of the new public safety building and the commencement of the new $26 million governmental courthouse complex. Proprietary Funds. Proprietary fund statements provide the same information as in the business activities column of the government-wide statements, but in greater detail, and on a fund basis for enterprise funds and the internal service fund. The major enterprise funds reported are the Solid Waste Fund, the Civic Center Fund, and the Economic Development and Industrial Fund. Enterprise Funds. At September 30, 2005, total net asset amounted to $53,329,874 for enterprise funds, as compared to $50,691,104 at September 30, 2004. Changes to net assets are a result of operations, other non-operating revenues and expenses, capital contributions and grants. The increase in net assets for enterprise funds was $2,638,770 over fiscal year 2004, a 51% increase. Operating income is the result of operating revenues less operating expenses. The chart below compares operating income or loss for all enterprise funds. Both operating revenues in the Solid Waste Fund and operating expenses increased 57% and 65%, respectively. As mentioned before, there is a direct correlation between in the increased usage and increased expenses. Landfill closure costs account for about the majority of the increase. Additional cell capacity had to be opened in order to handle the demand during the months following both Hurricanes Ivan and Dennis. This necessitated revised engineering estimates of future landfill maintenance and closure costs resulting in recognizing an additional $4,708,059 of closure liability. There was also an increase in the areas of advertising and contractual services. During fiscal year 2005, the County continued to aggressively advertise the electronics recycling and regional roundup programs for hazardous materials. Although the Civic Center saw an increase in operating revenues of $761,351, there was an offsetting increase in contractual services of $394,357. This increase was caused by the continued rising personnel and general operating costs. The major source of revenue in the Economic Development and Industrial Fund this fiscal year resulted from funding from the State of Florida and the Housing and Urban Development Agency for the continued development of the County’s two commerce parks. Infrastructure is now in place and the land sites are being sold to prospective business ventures as part of the County’s economic development plan to bring industry to the area. Land sales in fiscal year 2005 were $692,552. The Inspection Fund experienced a 98% increase in operating revenues this year as compared to fiscal year 2004. While maintaining expenses at a steady level for both fiscal year 2005 and 2004, the Inspection Fund was able to enjoy an operating income this year of $3,921,291. The increase in

The Other Major Governmental Funds include the Disaster Recovery Fund, Transportation andDrainage Fund, Debt Service Fund, and the Local Option Sales Tax (LOST) Fund. Data for these fundsis presented above for fiscal years 2005 and 2004.

The Disaster Recovery Fund was established to account for all the financing provided from various Stateand Federal grants, such as the Federal Emergency Management Agency (FEMA). The County alsoreceives various insurance reimbursements through this fund. Escambia County was struck by HurricaneIvan (a Category 3 hurricane) in September 2004 and Hurricane Dennis in July 2005. Both hurricanescaused major and widespread destruction across Escambia County. The County’s recovery efforts andFEMA reimbursements are tracked in this fund. At September 30, 2005, there were reimbursableexpenditures of over $65 million due from Federal and State sources.

Taxes are a major source of revenue for both the Transportation and Drainage Fund and the LOST Fund.Gas taxes are used by the Transportation Fund for the construction and maintenance of roads in theCounty. The Local Option Sales Tax (LOST) imposed on Escambia County is used by the LOST Fund toacquire and construct capital projects within the County. Revenues and expenditures in theTransportation and Drainage Fund appear to remain stable over the two-year period. LOST Fundexpenditures have increase 60% this fiscal year as compared to fiscal year 2004 mainly attributable to thecompletion of the new public safety building and the commencement of the new $26 million governmentalcourthouse complex.

Proprietary Funds. Proprietary fund statements provide the same information as in the businessactivities column of the government-wide statements, but in greater detail, and on a fund basis forenterprise funds and the internal service fund. The major enterprise funds reported are the Solid WasteFund, the Civic Center Fund, and the Economic Development and Industrial Fund.

Enterprise Funds. At September 30, 2005, total net asset amounted to $53,329,874 for enterprise funds,as compared to $50,691,104 at September 30, 2004. Changes to net assets are a result of operations,other non-operating revenues and expenses, capital contributions and grants. The increase in net assetsfor enterprise funds was $2,638,770 over fiscal year 2004, a 51% increase.

Operating income is the result of operating revenues less operating expenses. The chart belowcompares operating income or loss for all enterprise funds.

Both operating revenues in the Solid Waste Fund and operating expenses increased 57% and 65%,respectively. As mentioned before, there is a direct correlation between in the increased usage andincreased expenses. Landfill closure costs account for about the majority of the increase. Additional cellcapacity had to be opened in order to handle the demand during the months following both HurricanesIvan and Dennis. This necessitated revised engineering estimates of future landfill maintenance andclosure costs resulting in recognizing an additional $4,708,059 of closure liability. There was also anincrease in the areas of advertising and contractual services. During fiscal year 2005, the Countycontinued to aggressively advertise the electronics recycling and regional roundup programs forhazardous materials.

Although the Civic Center saw an increase in operating revenues of $761,351, there was an offsettingincrease in contractual services of $394,357. This increase was caused by the continued risingpersonnel and general operating costs.

The major source of revenue in the Economic Development and Industrial Fund this fiscal year resultedfrom funding from the State of Florida and the Housing and Urban Development Agency for the continueddevelopment of the County’s two commerce parks. Infrastructure is now in place and the land sites arebeing sold to prospective business ventures as part of the County’s economic development plan to bringindustry to the area. Land sales in fiscal year 2005 were $692,552.

The Inspection Fund experienced a 98% increase in operating revenues this year as compared to fiscalyear 2004. While maintaining expenses at a steady level for both fiscal year 2005 and 2004, theInspection Fund was able to enjoy an operating income this year of $3,921,291. The increase in

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revenues this fiscal year is directly attributable to the amount of rebuilding as a result of the two major hurricanes that have struck this area in the past 13 months. The Ambulance Fund experienced a modest 5% increase in their operating revenue during fiscal year 2005. Excluding an increase in depreciation, and a slight increase in personal services, the Ambulance Fund ended the year with a net operating loss of $643,128 this fiscal year due to a 13% increase in bad debt expense. Operating Income (Loss) 2005 2004 Solid Waste Fund ($291,991) $845,310 Civic Center Fund (1,536,537) (1,851,680)Economic Development and Industrial Fund (108,283) 2,330,006 Inspection Fund 3,921,291 540,355 Ambulance Fund (643,128) 45,667 Total $1,341,352 $1,909,658 Major enterprise funds are shown in the Financial Statements Section and the Non-Major enterprise funds are shown in the “Combining Statements” section of the annual report. Other factors concerning the finances of these funds have been addressed in the discussion of the County’s business-type activities. Internal Service Funds. The Internal Service Fund as presented, is a combination of the internal service fund of the Board of County Commissioners, and the internal service funds for both the Sheriff and the Clerk of the Circuit Court. The combining statements for the three internal service funds can be found in the “Combining Statements” section of the annual report. The Internal Service Funds are designed to recover the internal costs of general services provided to the other fund groups and to accumulate amounts required to fund the compensated absences liability of the Sheriff’s and the Clerk of Court’s employees. Net assets at the beginning of the year have been restated by ($16,398,979) to reflect the accounting of the compensated absences as of October 1, 2004. Due to the settlement of several lawsuits and worker’s compensation claims, the County experienced, for the first time in several years, a decrease of almost $4 million in the amount required by the actuarial estimates for the future claims liabilities reported in the Board of County Commissioners Internal Service Fund. Along with modest increases in the charges for services, the Board of County Commissioners internal service fund experienced an operating income of $6,245,754. The net asset total for the combined internal service funds are ($14,159,400) and ($5,415,459) for the fiscal years 2005 and 2004, respectively.

General Fund Budgetary Highlights Operating a government the size of Escambia County is a dynamic business and budget amendments are approved throughout the year. When comparing the original revenue budget to the final revenue budget, minor budget adjustments occurred in intergovernmental charges for services, and miscellaneous income. The changes are related to amounts received by other governmental agencies in the form of grants, court-related services, recreational park fees and various reimbursements. Ad valorem taxes collected in fiscal year 2005 were 16% greater than in fiscal year 2004, a comparison of final budget to actual general fund revenues show a difference for taxes that is attributable to lower than anticipated ad valorem collections. The difference in intergovernmental reflects an increase in the County’s pro-rata share of State revenues. The increase in charges for services reflects new court-related charges mandated by the State, effective July 1, 2004 that will be used to fund court-related technology costs. The favorable variance in investment income is due to the steady rise in interest rates that prevailed in the market during the latter part of the fiscal year.

revenues this fiscal year is directly attributable to the amount of rebuilding as a result of the two majorhurricanes that have struck this area in the past 13 months.

The Ambulance Fund experienced a modest 5% increase in their operating revenue during fiscal year2005. Excluding an increase in depreciation, and a slight increase in personal services, the AmbulanceFund ended the year with a net operating loss of $643,128 this fiscal year due to a 13% increase in baddebt expense.

Operating Income (Loss)2005 2004

Solid Waste Fund ($291,991) $845,310Civic Center Fund (1,536,537) (1,851,680)Economic Development and Industrial Fund (108,283) 2,330,006Inspection Fund 3,921,291 540,355Ambulance Fund (643,128) 45,667

Total $1,341,352 $1,909,658

Major enterprise funds are shown in the Financial Statements Section and the Non-Major enterprisefunds are shown in the “Combining Statements” section of the annual report.

Other factors concerning the finances of these funds have been addressed in the discussion of theCounty’s business-type activities.

Internal Service Funds. The Internal Service Fund as presented, is a combination of the internal servicefund of the Board of County Commissioners, and the internal service funds for both the Sheriff and theClerk of the Circuit Court. The combining statements for the three internal service funds can be found inthe “Combining Statements” section of the annual report. The Internal Service Funds are designed torecover the internal costs of general services provided to the other fund groups and to accumulateamounts required to fund the compensated absences liability of the Sheriff’s and the Clerk of Court’semployees. Net assets at the beginning of the year have been restated by ($16,398,979) to reflect theaccounting of the compensated absences as of October 1, 2004. Due to the settlement of severallawsuits and worker’s compensation claims, the County experienced, for the first time in several years, adecrease of almost $4 million in the amount required by the actuarial estimates for the future claimsliabilities reported in the Board of County Commissioners Internal Service Fund. Along with modestincreases in the charges for services, the Board of County Commissioners internal service fundexperienced an operating income of $6,245,754. The net asset total for the combined internal servicefunds are ($14,159,400) and ($5,415,459) for the fiscal years 2005 and 2004, respectively.

General Fund Budgetary Highlights

Operating a government the size of Escambia County is a dynamic business and budget amendmentsare approved throughout the year. When comparing the original revenue budget to the final revenuebudget, minor budget adjustments occurred in intergovernmental charges for services, and miscellaneousincome. The changes are related to amounts received by other governmental agencies in the form ofgrants, court-related services, recreational park fees and various reimbursements.

Ad valorem taxes collected in fiscal year 2005 were 16% greater than in fiscal year 2004, a comparison offinal budget to actual general fund revenues show a difference for taxes that is attributable to lower thananticipated ad valorem collections. The difference in intergovernmental reflects an increase in theCounty’s pro-rata share of State revenues. The increase in charges for services reflects new court-related charges mandated by the State, effective July 1, 2004 that will be used to fund court-relatedtechnology costs. The favorable variance in investment income is due to the steady rise in interest ratesthat prevailed in the market during the latter part of the fiscal year.

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Differences between the original budgeted expenditures and the final amended budget were relatively minor with an increase of $6,312,349 (4.3%) in appropriations, and can be briefly summarized as follows: Increase in general government activities of $6,191,630 Decrease in public safety activities of $33,202 Increase in physical environment of $25,326 Increase in economic environment of $65,420 Decrease in human services of $3,330 Increase in culture and recreation of $66,615

The favorable difference between the final amended budget for total expenditures and the actual total expenditures is chiefly due to the reserves of $18,173,455 that are budgeted as part of the general government category. Both revenues and expenditures were less than budgetary estimates thereby eliminating the need to draw upon either these reserves or upon existing fund balance.

Capital Asset and Debt Administration Capital Assets. The financial statements present capital assets in two groups: those assets subject to depreciation, such as equipment or operational facilities and those assets not subject to depreciation such as land and construction-in-progress. Escambia County’s investment in capital assets for both governmental and business-type activities, net of accumulated depreciation totaled $483,246,281 and $474,232,727 for fiscal years 2005 and 2004, respectively. This investment in capital assets, both purchased and donated, includes land, buildings, improvements, machinery and equipment, parks, roads, bridges and other major infrastructure. The total increase in Escambia County’s investment in capital assets for the current fiscal year was 1.9% (a 2.7% increase for governmental activities and a 5% decrease for business-type activities). Major capital asset events during the current fiscal year include the following: Donated general government assets consist of developer funded road and drainage infrastructure

and sidewalks in new planned developments and subdivisions. Donated infrastructure in fiscal year 2005 amounted to $2,364,308 as compared to $5,568,730 last fiscal year.

Construction continued on many of the County’s capital projects including road reconstruction, dirt road paving, and various drainage projects amounting to a $20 million increase in infrastructure capital assets and construction in process.

Renovations and improvements were made at several area Volunteer Fire Departments totaling approximately $633,000.

Continued renovations and improvements to various county facilities, including the Juvenile Justice Center and the Road Prison, totaled approximately $2 million.

The new Master Courthouse Complex broke ground and is continuing for another year. Costs during fiscal year approximate $12 million of the projected $26 million total project cost.

The County’s Information Resources Department purchased approximately $415,000 of general computer equipment and upgrades.

The Roads and Bridges Department purchased approximately $350,000 of heavy equipment for use at the Road Department, and various other light equipment to be used for road operations.

Mosquito and Arthropod Control purchased $120,406 of equipment and trucks for operations at Mosquito Control.

The Fire Department purchased $119,840 of exercise equipment for the health and welfare fitness of firefighters. Additionally, they purchased two pumper trucks for $588,396, four ATV units for $31,296, portable radios for $25,100, and three SUVs for $80,511.

The EMS Department purchased two new ambulance units for $258,084 and computer aided dispatch equipment for $592,535.

The Human Resources Department purchased approximately $37,000 of computer equipment to replace aged and obsolete equipment.

Differences between the original budgeted expenditures and the final amended budget were relativelyminor with an increase of $6,312,349 (4.3%) in appropriations, and can be briefly summarized as follows:

’9 ’9 Increase in general government activities of $6,191,630Decrease in public safety activities of $33,202Increase in physical environment of $25,326Increase in economic environment of $65,420Decrease in human services of $3,330Increase in culture and recreation of $66,615

’9 ’9’9 ’9

’9 ’9’9 ’9

’9 ’9

The favorable difference between the final amended budget for total expenditures and the actual totalexpenditures is chiefly due to the reserves of $18,173,455 that are budgeted as part of the generalgovernment category.

Both revenues and expenditures were less than budgetary estimates thereby eliminating the need todraw upon either these reserves or upon existing fund balance.

Capital Asset and Debt Administration

Capital Assets. The financial statements present capital assets in two groups: those assets subject todepreciation, such as equipment or operational facilities and those assets not subject to depreciationsuch as land and construction-in-progress.

Escambia County’s investment in capital assets for both governmental and business-type activities, net ofaccumulated depreciation totaled $483,246,281 and $474,232,727 for fiscal years 2005 and 2004,respectively. This investment in capital assets, both purchased and donated, includes land, buildings,improvements, machinery and equipment, parks, roads, bridges and other major infrastructure. The totalincrease in Escambia County’s investment in capital assets for the current fiscal year was 1.9% (a 2.7%increase for governmental activities and a 5% decrease for business-type activities).

Major capital asset events during the current fiscal year include the following:

v Donated general government assets consist of developer funded road and drainage infrastructureand sidewalks in new planned developments and subdivisions. Donated infrastructure in fiscalyear 2005 amounted to $2,364,308 as compared to $5,568,730 last fiscal year.

no Construction continued on many of the County’s capital projects including road reconstruction,dirt road paving, and various drainage projects amounting to a $20 million increase ininfrastructure capital assets and construction in process.

so Renovations and improvements were made at several area Volunteer Fire Departments totalingapproximately $633,000.

v Continued renovations and improvements to various county facilities, including the JuvenileJustice Center and the Road Prison, totaled approximately $2 million.

so The new Master Courthouse Complex broke ground and is continuing for another year. Costsduring fiscal year approximate $12 million of the projected $26 million total project cost.

no The County’s Information Resources Department purchased approximately $415,000 of generalcomputer equipment and upgrades.

v The Roads and Bridges Department purchased approximately $350,000 of heavy equipment foruse at the Road Department, and various other light equipment to be used for road operations.

so Mosquito and Arthropod Control purchased $120,406 of equipment and trucks for operations atMosquito Control.

v The Fire Department purchased $119,840 of exercise equipment for the health and welfarefitness of firefighters. Additionally, they purchased two pumper trucks for $588,396, four ATVunits for $31,296, portable radios for $25,100, and three SUVs for $80,511.

v The EMS Department purchased two new ambulance units for $258,084 and computer aideddispatch equipment for $592,535.

v The Human Resources Department purchased approximately $37,000 of computer equipment toreplace aged and obsolete equipment.

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Computer equipment and upgrades of $191,605 were purchased for the State Attorney’s Office, the Public Defender’s Office and the Tax Collector.

The Supervisor of Elections, under State mandate to upgrade computer systems, purchase approximately $725,000 of new voting booth machines and related computer hardware.

Governmental ActivitiesEscambia County, Florida

Capital Assets (net of depreciation)

as of 09/30/05

Buildings and Improvement s22%

Inf rast ruct ure60%

Land5%

Const ruct ion in Progress7%

Equipment6%

Business-type Activites Escambia County, Florida

Capital Assets(net of accumulated depreciation)

as of 09/30/95

Land15%

Buildings and Improvements34%

Infrastructure40%

Equipment11%

Sources of donated assets each year stem from new subdivisions in the County. New subdivisions are required to meet the County’s comprehensive planning requirements and, in doing so, provide additions

4‘ Computer equipment and upgrades of $191,605 were purchased for the State Attorney’s Office,the Public Defender’s Office and the Tax Collector.

4‘ The Supervisor of Elections, under State mandate to upgrade computer systems, purchaseapproximately $725,000 of new voting booth machines and related computer hardware.

Governmental ActivitiesEscam bia County, Florida

Capital Assets(net of depreciation)

as of 09/30/05

Construction in Progress Land

7% 5%Equipment

6% Buildingsand Improvements22%

Infrastructure60%

Business-type ActivitesEscambia County, Florida

Capital Assets(net of accumulated depreciation)

as of 09I30/95

Equipment Land

11% 15%

Infrastructure40%

Buildings and Improvements34%

Sources of donated assets each year stem from new subdivisions in the County. New subdivisions arerequired to meet the County’s comprehensive planning requirements and, in doing so, provide additions

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to the County’s infrastructure for roads, sidewalks, stormwater drainage, and in some cases parks and recreational facilities. Additional information on Escambia County’s capital assets can be found on page 48 in the Notes of this report. Long-Term Debt. At the end of the fiscal year 2005, the County had total bonded debt of $128,740,000, or $422 per capita, which is secured solely by specified revenue sources (e.g., toll bridge revenues, tourist development taxes, and half-cent sales taxes). The County has no general obligation debt. The County’s outstanding notes, leases, and bonded debt decreased by $13,924,278 during fiscal year 2005. No additional notes and leases were entered into during fiscal year 2005.

Escambia County, Florida Long-Term Debt

Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 Revenue Bonds: Sales tax revenue bonds $88,050,000 $89,730,000 $0 $0 $88,050,000 $89,730,000 Road improvement bonds 4,225,000 5,160,000 0 0 4,225,000 5,160,000 Tourist development bonds 15,000,000 15,860,000 0 0 15,000,000 15,860,000 Capital improvement bonds 21,465,000 21,890,000 0 0 21,465,000 21,890,000 Total revenue bonds 128,740,000 132,640,000 0 0 128,740,000 132,640,000 Notes and loans: Capital improvement notes 29,492,000 37,383,000 0 0 29,492,000 37,383,000 State of Florida Toll Fac. Note 302,501 385,834 0 0 302,501 385,834 Line of Credit 0 0 394,787 789,575 394,787 789,575 Capital Leases 6,631,668 8,286,825 0 0 6,631,668 8,286,825 Total notes/loans/leases 36,426,169 46,055,659 394,787 789,575 36,820,956 46,845,234 Total Long-Term Debt $165,166,169 $178,695,659 $394,787 $789,575 $165,560,956 $179,485,234

Escambia County currently holds a bond rating from Standard & Poor’s of AA- with a stable rating. The stable rating indicates that a rating is not likely to change. The County has met and complied with all technical and financial covenants in the bond contracts. No legal debt limit is set by the Constitution of the State of Florida or Escambia County. Additional information on Escambia County’s long-term debt can be found in the Notes section of this report.

Economic Factors and Year 2006 Budgets and Rates As mentioned several places throughout this MD&A, Hurricanes Ivan and Dennis struck Escambia County during the past ten months. Ivan was the most destructive hurricane to affect this area in more than 100 years. This was a major Category 3 hurricane with maximum sustained winds of 130 mph when it struck land. Along with the wind came a storm surge of 20 – 40 feet. The storm surge penetrated well up into the County along the multitude of bays and rivers. A large portion of both Pensacola Beach and Perdido Key was destroyed, thereby injuring the local tourism trade for the near future. The majority of homes in the County received damage of some kind, while some homes were totally destroyed. Hurricane Dennis followed on the heels of Ivan and even though it was not as destructive a storm as Ivan, for an area that was still recovering from Ivan, Dennis added to the beach erosion and debris clean-up

to the County’s infrastructure for roads, sidewalks, stormwater drainage, and in some cases parks andrecreational facilities.

Additional information on Escambia County’s capital assets can be found on page 48 in the Notes of thisreport.

Long-Term Debt. At the end of the fiscal year 2005, the County had total bonded debt of $128,740,000,or $422 per capita, which is secured solely by specified revenue sources (e.g., toll bridge revenues,tourist development taxes, and half-cent sales taxes). The County has no general obligation debt.

The County’s outstanding notes, leases, and bonded debt decreased by $13,924,278 during fiscal year2005. No additional notes and leases were entered into during fiscal year 2005.

Escambia County, FloridaLong-Term Debt

Governmental Business-typeActivities Activities Total

2005 2004 2005 2004 2005 2004Revenue Bonds:Sales tax revenue bonds $88,050,000 $89,730,000 $0 $0 $88,050,000 $89,730,000Road improvement bonds 4,225,000 5,160,000 4,225,000 5,160,000Tourist development bonds 15,000,000 15,860,000 15,000,000 15,860,000Capital improvement bonds 21,465,000 21,890,000 21,465,000 21,890,000

Total revenue bonds 128,740,000 132,640,000 128,740,000 132,640,00000

00

00

00

Notes and loans:Capital improvement notes 29,492,000 37,383,000 0 0 29,492,000 37,383,000State of Florida Toll Fac. Note 302,501 385,834 0 0 302,501 385,834Line of Credit 0 0 394,787 789,575 394,787 789,575Capital Leases 6,631,668 8,286,825 0 0 6,631,668 8,286,825

Total notes/loanslleases 36,426,169 46,055,659 394,787 789,575 36,820,956 46,845,234Total Long-Term Debt $165,166,169 $178,695,659 $394,787 $789,575 $165,560,956 $179,485,234

Escambia County currently holds a bond rating from Standard & Poor’s of AA- with a stable rating. Thestable rating indicates that a rating is not likely to change. The County has met and complied with alltechnical and financial covenants in the bond contracts.

No legal debt limit is set by the Constitution of the State of Florida or Escambia County. Additionalinformation on Escambia County’s long-term debt can be found in the Notes section of this report.

Economic Factors and Year 2006 Budgets and Rates

As mentioned several places throughout this MD&A, Hurricanes Ivan and Dennis struck EscambiaCounty during the past ten months. Ivan was the most destructive hurricane to affect this area in morethan 100 years. This was a major Category 3 hurricane with maximum sustained winds of 130 mph whenit struck land. Along with the wind came a storm surge of 20 — 40 feet. The storm surge penetrated wellup into the County along the multitude of bays and rivers. A large portion of both Pensacola Beach andPerdido Key was destroyed, thereby injuring the local tourism trade for the near future. The majority ofhomes in the County received damage of some kind, while some homes were totally destroyed.Hurricane Dennis followed on the heels of Ivan and even though it was not as destructive a storm as Ivan,for an area that was still recovering from Ivan, Dennis added to the beach erosion and debris clean-up

17

18

efforts that were already underway. Approximately $187 million has been spent by Escambia County on debris pick up and approximately $21 million on emergency measures and building recovery. The County will be reimbursed 90% of the cost for Ivan by the Federal Emergency Management Agency and 5% by the State of Florida, leaving the County responsible for 5% of the cleanup costs. FEMA and State relief for Hurricane Dennis is 93.75% leaving the County responsible for 6.25%. The community is continuing its rebuilding efforts and this rebuilding effort will help the area’s economy through increased sales tax due to increased purchases of building supplies and increased building permits revenue. Factors considered in preparing Escambia County’s budget for the 2006 fiscal year included: New challenges face the County following the effect of Hurricanes Ivan and Dennis. Sales tax

revenues have actually increased due to the strong purchase of building materials and supplies necessary for the recovery efforts. Tourist development taxes remain strong as rooms continue to be occupied with temporary work crews. Fire and Santa Rosa Island MSBU assessments, and Bob Sikes Toll revenue remain stable.

Although residential building permit on new construction activity decreased 13% during fiscal year

2005 continued renovation on existing structures will keep licenses and permitting revenues high during the coming fiscal year.

Interest rates for earnings are beginning to rise, but remain conservatively budgeted for revenue

purposes. During the current fiscal year, unreserved fund balance in the general fund increased to $40,697,524. An amount of $927,534 has been appropriated for spending in the 2006 fiscal year budget. Our healthy fund balance did not indicate the need for an increase in the ad valorem tax rates in Escambia County Government for fiscal year 2006. Escambia County continues to review various service fees and charges to meet the ongoing needs of infrastructure and services for County residents. Escambia County will look to the voters in March 2006 for an 11-year extension of the local option sales tax which, without the vote, will expire in May 2007. Requests for Information. This financial report is designed to provide a general overview of Escambia County Government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information may be addressed to the Clerk of the Circuit Court, Finance Department, 223 Palafox Place, Pensacola, Florida 32502. The Clerk’s office may also be contacted through the Website address: www.escambiaclerk.com .

efforts that were already underway. Approximately $187 million has been spent by Escambia County ondebris pick up and approximately $21 million on emergency measures and building recovery. The Countywill be reimbursed 90% of the cost for Ivan by the Federal Emergency Management Agency and 5% bythe State of Florida, leaving the County responsible for 5% of the cleanup costs. FEMA and State relieffor Hurricane Dennis is 93.75% leaving the County responsible for 6.25%. The community is continuingits rebuilding efforts and this rebuilding effort will help the area’s economy through increased sales taxdue to increased purchases of building supplies and increased building permits revenue.

Factors considered in preparing Escambia County’s budget for the 2006 fiscal year included:

4‘ New challenges face the County following the effect of Hurricanes Ivan and Dennis. Sales taxrevenues have actually increased due to the strong purchase of building materials and suppliesnecessary for the recovery efforts. Tourist development taxes remain strong as rooms continueto be occupied with temporary work crews. Fire and Santa Rosa Island MSBU assessments, andBob Sikes Toll revenue remain stable.

so Although residential building permit on new construction activity decreased 13% during fiscal year2005 continued renovation on existing structures will keep licenses and permitting revenues highduring the coming fiscal year.

no Interest rates for earnings are beginning to rise, but remain conservatively budgeted for revenuepurposes.

During the current fiscal year, unreserved fund balance in the general fund increased to $40,697,524. Anamount of $927,534 has been appropriated for spending in the 2006 fiscal year budget. Our healthy fundbalance did not indicate the need for an increase in the ad valorem tax rates in Escambia CountyGovernment for fiscal year 2006.

Escambia County continues to review various service fees and charges to meet the ongoing needs ofinfrastructure and services for County residents. Escambia County will look to the voters in March 2006for an 11-year extension of the local option sales tax which, without the vote, will expire in May 2007.

Requests for Information. This financial report is designed to provide a general overview of EscambiaCounty Government’s finances. Questions concerning any of the information provided in this report orrequests for additional financial information may be addressed to the Clerk of the Circuit Court, FinanceDepartment, 223 Palafox Place, Pensacola, Florida 32502. The Clerk’s office may also be contactedthrough the Website address: www.escambiaclerk.com .

18


STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2005Primary Government Component Units

Governmental Business-type TotalActivities Activities Primary Government Total

ASSETSCash and cash equivalents $14,092,987 $703,394 $14,796,381 $2,801,548Equity in pooled cash and investments 144,801,464 17,180,537 161,982,001 0Investments 150,000 0 150,000 3,789,108Receivables (net of allowance for uncollectibles) 4,749,835 4,163,782 8,913,617 417,643Internal balances 2,072,373 (2,072,373) 0 0Due from other governmental units 82,374,408 186,352 82,560,760 556,138Inventory 1,365,316 240,541 1,605,857 0Other current assets 23,145 30,988 54,133 60,832Restricted assets 85,693 6,515,404 6,601,097 21,927,980Bank participation agreements 0 0 0 66,167Unamortized bond issuance costs 1,885,243 0 1,885,243 0Other assets 0 0 0 1,812,240Capital assets: Land and construction in progress non-depreciable 51,262,733 6,857,145 58,119,878 0 Depreciable (net) 386,321,011 38,805,392 425,126,403 11,771,850 Total assets 689,184,208 72,611,162 761,795,370 43,203,506

LIABILTIESVouchers payable 53,406,019 1,070,909 54,476,928 694,893Contracts payable 12,483,670 222,151 12,705,821 0Salaries and benefits payable 6,756,760 400,707 7,157,467 70,801Due to other governmental units 2,387,130 8,822 2,395,952 1,048,783Other current liabilities 9,987,883 840,247 10,828,130 117,677Payable from restricted assets 85,693 535,081 620,774 0Non-current liabilities: Due within one year: Notes and bonds payable 12,349,333 394,787 12,744,120 0 Capital leases 1,485,706 0 1,485,706 15,587 Interest payable 244,698 0 244,698 0 Compensated absences 5,066,744 0 5,066,744 0 Due in more than one year: Compensated absences 19,226,673 1,414,061 20,640,734 244,168 Notes and bonds payable 146,185,168 0 146,185,168 0 Unearned revenues 0 0 0 183,000 Capital leases 5,145,962 0 5,145,962 22,227 Unamortized bond premium 983,946 0 983,946 0 Landfill closure and postclosure care payable 0 14,394,523 14,394,523 0 Claims liabilities 13,901,801 0 13,901,801 0 Total liabilities 289,697,186 19,281,288 308,978,474 2,397,136

NET ASSETSInvested in capital assets (net of related debt) 304,720,076 43,195,920 347,915,996 11,734,036Restricted: 20,793,103 General 927,534 0 927,534 0 Disaster recovery 24,450,922 0 24,450,922 0 Transportation and drainage 833,377 0 833,377 0 Debt service 8,763,231 0 8,763,231 0 Local option sales tax 57,731,354 0 57,731,354 0 Non-major governmental funds 4,939,181 0 4,939,181 0Unrestricted (2,878,653) 10,133,954 7,255,301 8,279,231 Total net assets $399,487,022 $53,329,874 $452,816,896 $40,806,370

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

19


STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2005

ASSETSCash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Internal balancesDue from other governmental unitsInventoryOther current assetsRestricted assetsBank participation agreementsUnamortized bond issuance costsOther assetsCapital assets:

Land and construction in progress non-depreciableDepreciable (net)

Total assets

LIABILTIESVouchers payableContracts payableSalaries and benefits payableDue to other governmental unitsOther current liabilitiesPayable from restricted assetsNon-current liabilities:

Due within one year:Notes and bonds payableCapital leasesInterest payableCompensated absences

Due in more than one year:Compensated absencesNotes and bonds payableUnearned revenuesCapital leasesUnamortized bond premiumLandfill closure and postclosure care payableClaims liabilitiesTotal liabilities

NET ASSETSInvested in capital assets (net of related debt)Restricted:

GeneralDisaster recoveryTransportation and drainageDebt serviceLocal option sales taxNon-major governmental funds

UnrestrictedTotal net assets

The accompanying notes are an integral part of thefinancial statements.

Primary Government Component UnitsGovernmental

ActivitiesBusiness-type

ActivitiesTotal

Primary Government Total

$14,092,987144,801,464

150,0004,749,8352,072,373

82,374,4081,365,316

23,14585,693

01,885,243

051,262,733

386,321,011

$703,39417,180,537

04,163,782

(2,072,373)186,352240,541

30,9886,515,404

000

6,857,14538,805,392

$14,796,381161,982,001

150,0008,913,617

082,560,760

1,605,85754,133

6,601,0970

1,885,2430

58,119,878425,126,403

$2,801,5480

3,789,108417,643

0556,138

060,832

21,927,98066,167

01,812,240

011,771,850

689,184,208 72,611,162 761,795,370 43,203,506

53,406,01912,483,6706,756,7602,387,1309,987,883

85,693

12,349,3331,485,706

244,6985,066,744

19,226,673146,185,168

05,145,962

983,9460

13,901,801

1,070,909222,151400,707

8,822840,247535,081

394,7870O0

1,414,0610000

14,394,5230

54,476,92812,705,8217,157,4672,395,952

10,828,130620,774

12,744,1201,485,706

244,6985,066,744

20,640,734146,185,168

05,145,962

983,94614,394,52313,901,801

694,8930

70,8011,048,783

117,6770

015,587

00

244,1680

183,00022,227

000

289,697,186 19,281,288 308,978,474 2,397,136

304,720,076

927,53424,450,922

833,3778,763,231

57,731,3544,939,181

(2,878,653)

43,195,920

00

00

0

010,133,954

347,915,996

927,53424,450,922

833,3778,763,231

57,731,3544,939,1817,255,301

11,734,03620,793,103

000000

8,279,231$399,487,022

19

$53,329,874 $452,816,896 $40,806,370


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2005

Program RevenuesOperating Capital

Charges for Grants and Grants andExpenses Services Contributions Contributions

Function/Program ActivitiesGovernmental activities: General government $30,259,660 $24,221,602 $1,109,198 $816,775 Public safety 319,042,002 17,178,914 202,322,747 578 Physical environment 2,306,914 433,875 980,229 830,339 Transportation 46,601,198 2,470,098 4,219,413 784,111 Economic environment 9,115,413 144,356 2,415,400 4,145,285 Human services 4,662,761 0 922,035 0 Culture and recreation 5,497,253 193,917 236,481 138,273 Court related 9,140,462 10,538,708 (70,371) 0 Interest on long term debt 7,850,023 0 0 0 Total governmental activities 434,475,686 55,181,470 212,135,132 6,715,361

Business-type activities: Solid waste 13,931,979 13,583,303 0 0 Civic center 5,712,799 4,146,358 0 0 Industrial park 609,116 0 0 379,170 Other 16,365,313 19,608,163 337 0 Total business-type activities 36,619,207 37,337,824 337 379,170 Total primary government $471,094,893 $92,519,294 $212,135,469 $7,094,531

Component units: Civil Service Board $1,267,427 $1,051,242 $0 $0 Law Library Board 115,737 84,869 0 0 Santa Rosa Island Authority 5,701,077 4,036,405 1,001,215 0 Housing Finance Authority 1,729,324 2,040,285 0 0 Total component units $8,813,565 $7,212,801 $1,001,215 $0

General Revenues: Property taxes Tourist development taxes Intergovernmental, unrestricted Sales taxes Gas taxes Unrestricted interest Sale of assets Miscellaneous revenues Insurance reimbursementsCapital contributionsTransfers - internal activities Total general revenues, special items, and transfers Change in net assetsNet assets - beginningNet assets - ending

The accompanying notes are an integral part of the financial statements

20


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2005

Program RevenuesOperating Capital

Charges for Grants and Grants andExpenses Services Contributions Contributions

Function/Program ActivitiesGovernmental activities:

General government $30,259,660 $24,221,602 $1,109,198 $816,775Public safety 319,042,002 17,178,914 202,322,747 578Physical environment 2,306,914 433,875 980,229 830,339Transportation 46,601,198 2,470,098 4,219,413 784,111Economic environment 9,115,413 144,356 2,415,400 4,145,285Human services 4,662,761 0 922,035 0Culture and recreation 5,497,253 193,917 236,481 138,273Court related 9,140,462 10,538,708 (70,371) 0Interest on long term debt 7,850,023 0 0 OTotal governmental activities 434,475,686 55,181,470 212,135,132 6,715,361

Business-type activities:Solid waste 13,931,979 13,583,303 0 0Civic center 5,712,799 4,146,358 0 0Industrial park 609,116 0 0 379,170Other 16,365,313 19,608,163 337 0

Total business-type activities 36,619,207 37,337,824 337 379,170Total primary government $471,094,893 $92,519,294 $212,135,469 $7,094,531

Component units:Civil Service Board $1,267,427 $1,051,242 $0 $0Law Library Board 115,737 84,869 0 0Santa Rosa Island Authority 5,701,077 4,036,405 1,001,215 0Housing Finance Authority 1,729,324 2,040,285 0 0

Total component units $8,813,565 $7,212,801 $1,001,215 $0

General Revenues:Property taxesTourist development taxesIntergovernmental, unrestrictedSales taxesGas taxesUnrestricted interestSale of assetsMiscellaneous revenuesInsurance reimbursements

Capital contributionsTransfers - internal activities

Total general revenues, special items, and transfersChange in net assets

Net assets - beginningNet assets - ending

The accompanying notes are an integral part of thefinancial statements

20

Net (Expense) Revenue andChanges in Net Assets

Primary GovernmentGovernmental Business-type Component

Activities Activities Total Units

($4,112,085) $0 ($4,112,085) $0(99,539,762) 0 (99,539,762) 0

(62,471) 0 (62,471) 0(39,127,576) 0 (39,127,576) 0(2,410,372) 0 (2,410,372) 0(3,740,726) 0 (3,740,726) 0(4,928,582) 0 (4,928,582) 01,327,875 0 1,327,875 0

(7,850,023) 0 (7,850,023) 0(160,443,723) 0 (160,443,723) 0

0 (348,676) (348,676) 00 (1,566,441) (1,566,441) 00 (229,946) (229,946) 00 3,243,187 3,243,187 00 1,098,124 1,098,124 0

(160,443,723) 1,098,124 (159,345,599) 0

0 0 0 (216,185)0 0 0 (30,868)0 0 0 (663,457)0 0 0 310,9610 0 0 (599,549)

98,901,932 0 98,901,932 04,135,528 0 4,135,528 0

13,773,839 0 13,773,839 060,769,046 0 60,769,046 014,326,588 0 14,326,588 06,055,708 509,774 6,565,482 206,066

845,203 247,258 1,092,461 (42,281)2,355,394 104,514 2,459,908 81,0013,974,807 0 3,974,807 02,366,065 462,954 2,829,019 0(216,146) 216,146 0 0

207,287,964 1,540,646 208,828,610 244,78646,844,241 2,638,770 49,483,011 (354,763)

352,642,781 50,691,104 403,333,885 41,161,133$399,487,022 $53,329,874 $452,816,896 $40,806,370

21

Net (Expense) Revenue andChanges in Net Assets

Primaw GovernmentGovernmental

ActivitiesBusiness-type

Activities TotalComponent

Units

($4,112,085)(99,539,762)

(62,471)(39,127,576)

(2,410,372)(3,740,726)(4,928,582)1,327,875

(7,850,023)

($4,112,085)(99,539,762)

(62,471)(39,127,576)

(2,410,372)(3,740,726)(4,928,582)1,327,875

(7,850,023)

99

(160,443,723) OO

OO

OO

OO

OO

(160,443,723) OO

OO

OO

OO

OO

(348,676)(1,566,441)

(229,946)3,243,187

(348,676)(1,566,441)

(229,946)3,243,187

1,098,124 1,098,124

(0

00

00

0

(160,443,72 ) 1,098,124 (159,345,599) OO

OO

OO

(216,185)(30,868)

(663,457)310,961

00

00

0

00

00

0

00

00

0

(599,549)

98,901,9324,135,528

13,773,83960,769,04614,326,5886,055,708

845,2032,355,3943,974,8072,366,065

(216,146)

00

00

0509,774247,258104,514

0462,954216,146

98,901,9324,135,528

13,773,83960,769,04614,326,5886,565,4821,092,4612,459,9083,974,8072,829,019

0

00

00

206,066(42,281)81,001

000

207,287,964 1,540,646 208,828,610 244,78646,844,241

352,642,7812,638,770

50,691,10449,483,011

403,333,885(354,763)

41,161,133$399,487,022 $53,329,874 $452,816,896 $40,806,370

21


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2005 Transportation Other Total

Disaster and Debt Governmental GovernmentalGeneral Recovery Drainage Service LOST Funds Funds

ASSETSCash and cash equivalents $6,053,526 $0 $145 $0 $0 $8,005,436 $14,059,107Equity in pooled cash and investments 39,330,770 14,486,618 4,132,665 8,763,231 42,967,468 22,849,174 132,529,926Investments 0 0 0 0 0 150,000 150,000Receivables (net of allowance for uncollectibles) 2,074,369 15,381 4,913 0 20,042 1,399,559 3,514,264Due from other funds 2,819,277 0 0 0 0 160,164 2,979,441Due from other governmental units 3,049,161 67,448,504 1,022,916 0 4,380,961 6,470,100 82,371,642Inventory 762,719 0 319,111 0 0 283,486 1,365,316Other current assets 23,145 0 0 0 0 0 23,145Advance to other funds 138,295 0 0 0 30,000,000 0 30,138,295 Total assets $54,251,262 $81,950,503 $5,479,750 $8,763,231 $77,368,471 $39,317,919 $267,131,136

LIABILITIESVouchers payable $2,609,610 $43,463,985 $431,019 $0 $3,897,476 $2,620,209 $53,022,299Contracts payable 3,334 10,396,387 527 0 1,320,849 762,573 12,483,670Salaries payable 4,914,603 40,004 451,560 0 22,292 1,314,419 6,742,878Due to other funds 1,783,521 154,194 0 0 50,635 2,921,592 4,909,942Due to other governmental units 1,059,965 23 1,464 0 136 1,264,434 2,326,022Other current liabilities 2,255,171 6,667,025 77,820 0 0 962,993 9,963,009Long-term liabilities: Advance from other funds 0 30,000,000 0 0 0 0 30,000,000 Total liabilities 12,626,204 90,721,618 962,390 0 5,291,388 9,846,220 119,447,820

FUND BALANCESReserved for encumbrances 26,520 24,450,922 514,266 0 27,731,354 4,655,695 57,378,757Reserved for advances to other funds 138,295 0 0 0 30,000,000 0 30,138,295Reserved for debt service 0 0 0 8,763,231 0 0 8,763,231Reserved for inventory 762,719 0 319,111 0 0 283,486 1,365,316Unreserved, reported in: General fund 40,697,524 0 0 0 0 0 40,697,524 Special revenue funds 0 (33,222,037) 3,683,983 0 0 21,364,971 (8,173,083) Capital projects 0 0 0 0 14,345,729 3,167,547 17,513,276 Total fund balances 41,625,058 (8,771,115) 4,517,360 8,763,231 72,077,083 29,471,699 147,683,316

Total liabilities and fund balances $54,251,262 $81,950,503 $5,479,750 $8,763,231 $77,368,471 $39,317,919 $267,131,136


22


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2005

ASSETSCash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventoryOther current assetsAdvance to other funds

Total assets

LIABILITIESVouchers payableContracts payableSalaries payableDue to other fundsDue to other governmental unitsOther current liabilitiesLong-term liabilities:Advance from other funds

Total liabilities

FUND BALANCESReserved for encumbrancesReserved for advances to other fundsReserved for debt serviceReserved for inventoryUnreserved, reported in:General fundSpecial revenue fundsCapital projects

Total fund balances

Total liabilities and fund balances


General

$6,053,52639,330,770

02,074,3692,819,2773,049,161

762,71923,145

138,295

DisasterRecovery

$014,486,618

015,381

067,448,504

0O0

Transportationand

Drainage

$1454,132,665

04,913

01,022,916

319,11100

DebtService

$08,763,231

0

LOST

$042,967,468

020,042

04,380,961

00

30,000,000

OtherGovernmental

Funds

$8,005,43622,849,174

150,0001,399,559

160,1646,470,100

283,48600

TotalGovernmental

Funds

$14,059,107132,529,926

150,0003,514,2642,979,441

82,371,6421,365,316

23,14530,138,295

$54,251,262

$2,609,6103,334

4,914,6031,783,5211,059,9652,255,171

0

$81,950,503

$43,463,98510,396,387

40,004154,194

236,667,025

30,000,000

$5,479,750

$431,019527

451,5600

1,46477,820

0

0000001$8,763,23

00

00

00

0

$77,368,471

$3,897,4761,320,849

22,29250,635

1360

0

$39,317,919

$2,620,209762,573

1,314,4192,921,5921,264,434

962,993

0

$267,131,136

$53,022,29912,483,6706,742,8784,909,9422,326,0229,963,009

30,000,00012,626,204 90,721,618 962,390 5,291,388 9,846,220 119,447,820

26,520138,295

0762,719

40,697,52400

24,450,922000

0(33,222,037)

0

514,26600

319,111

03,683,983

0

00

8,763,2310

27,731,35430,000,000

00

00

14,345,729

4,655,69500

283,486

021,364,971

3,167,547

57,378,75730,138,295

8,763,2311,365,316

40,697,524(8,173,083)17,513,276

41,625,058 (8,771,115) 4,517,360 —\O

OO

8,763,23 72,077,083 29,471 ,699 147,683,316

$54,251,262 $81,950,503 $5,479,750

22

$8,763,231 $77,368,471 $39,317,919 $267,131,136


RECONCILIATION OF THE BALANCE SHEETTO THE STATEMENT OF NET ASSETSGOVERNMENTAL FUNDS


Fund balances - total governmental funds $147,683,316

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

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. The cost of the assets is $751,590,897 and the accumulated 437,576,903 depreciation is $314,013,994

Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds. Governmental bonds, notes and loans payable ($158,534,501) Compensated absences (7,104,227) Leases (6,631,668) Unamortized bond issuance costs 1,885,243 Unamortized original issue bond premium (983,946) (171,369,099)

Interest payable in governmental funds is susceptable to full accrual on the entity-wide statements. (244,698)

Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service fund are reported with governmental activities. (14,159,400)

Net assets of governmental activities $399,487,022


23


RECONCILIATION OF THE BALANCE SHEETTO THE STATEMENT OF NET ASSETSGOVERNMENTAL FUNDS


Fund balances - total governmental funds

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

Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds.The cost of the assets is $751,590,897 and the accumulateddepreciation is $314,013,994

Long-term liabilities, including bonds payable are not due andpayable in the current period and therefore are not reportedin the governmental funds.

Governmental bonds, notes and loans payableCompensated absencesLeasesUnamortized bond issuance costsUnamortized original issue bond premium

Interest payable in governmental funds is susceptable tofull accrual on the entity-wide statements.

Internal service funds are used by management to charge the costsof certain activities to individual funds. The assets and liabilitiesof the internal service fund are reported with governmental activities.

Net assets of governmental activities


$147,683,316

437,576,903

($158,534,501)(7,104,227)(6,631,668)1,885,243(983,946) (171,369,099)

(244,698)

(14,159,400)

m

23


STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2005 Transportation Other TotalDisaster and Debt Governmental Governmental

General Recovery Drainage Service LOST Funds Funds

Revenues: Taxes $111,020,739 $0 $7,345,534 $0 $38,671,111 $5,897,702 $162,935,086 Licenses and permits 639,935 0 0 0 0 0 639,935 Intergovernmental 37,080,209 192,740,395 5,085,145 600,000 612,375 24,180,918 260,299,042 Charges for services 8,329,643 0 1,050,457 0 0 14,879,822 24,259,922 Fines and forfeitures 70,477 0 0 0 0 896,019 966,496 Investment income 1,331,128 346,533 119,666 267,611 1,766,544 1,799,392 5,630,874 Special assessments 817,469 0 885,101 0 0 10,435,535 12,138,105 Miscellaneous 5,077,854 19,469 997,818 0 250,153 1,508,150 7,853,444 Total revenues 164,367,454 193,106,397 15,483,721 867,611 41,300,183 59,597,538 474,722,904

Expenditures: Current: General government 49,445,148 0 0 0 0 10,466,343 59,911,491 Public safety 71,963,873 207,502,368 4,300,920 0 0 23,672,908 307,440,069 Physical environment 563,294 0 305,844 0 0 1,406,389 2,275,527 Transportation 274,062 0 14,434,630 0 0 10,317,831 25,026,523 Economic environment 401,496 0 0 0 0 8,589,898 8,991,394 Human services 3,216,547 0 0 0 0 1,117,524 4,334,071 Culture and recreation 2,003,348 0 0 0 0 1,109,673 3,113,021 Capital improvements 0 0 0 0 28,907,344 0 28,907,344 Debt service Principal retirement 212,333 0 812,955 12,504,202 0 0 13,529,490 Interest and fiscal charges 11,000 584,258 80,213 7,215,385 29,274 22,571 7,942,701 Total expenditures 128,091,101 208,086,626 19,934,562 19,719,587 28,936,618 56,703,137 461,471,631

Excess (deficiency) of revenue over (under) expenditures 36,276,353 (14,980,229) (4,450,841) (18,851,976) 12,363,565 2,894,401 13,251,273

Other financing sources (uses): Insurance reimbursements 0 3,542,383 0 0 0 432,424 3,974,807 Transfers in 1,297,504 0 6,342,973 19,097,173 22,540,284 4,503,806 53,781,740 Transfers out (16,199,085) 0 (99,496) 0 (8,847,069) (28,852,236) (53,997,886) Total other financing sources (uses) (14,901,581) 3,542,383 6,243,477 19,097,173 13,693,215 (23,916,006) 3,758,661

Net change in fund balances 21,374,772 (11,437,846) 1,792,636 245,197 26,056,780 (21,021,605) 17,009,934

Fund balances at beginning of year 20,250,286 2,666,731 2,724,724 8,518,034 46,020,303 50,493,304 130,673,382Fund balances (deficit) at end of year $41,625,058 ($8,771,115) $4,517,360 $8,763,231 $72,077,083 $29,471,699 $147,683,316


24


STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2005

Revenues:TaxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues

Expenditures:Current:

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreation

Capital improvementsDebt service

Principal retirementInterest and fiscal chargesTotal expenditures

Excess (deficiency) of revenue over (under)expenditures

Other financing sources (uses):Insurance reimbursementsTransfers inTransfers out

Total other financing sources (uses)

Net change in fund balances

Fund balances at beginning of yearFund balances (deficit) at end of year


General

$111,020,739639,935

37,080,2098,329,643

70,4771,331,128

817,4695,077,854

DisasterRecovery

$00

192,740,39500

346,5330

19,469

Transportationand

Drainage

$7,345,5340

5,085,1451,050,457

0119,666885,101997,818

DebtService

$00

600,000

LOST

$38,671,1110

612,37500

1,766,5440

250,153

OtherGovernmental

Funds

$5,897,7020

24,180,91814,879,822

896,0191,799,392

10,435,5351,508,150

TotalGovernmental

Funds

$162,935,086639,935

260,299,04224,259,922

966,4965,630,874

12,138,1057,853,444

164,367,454 193,106,397 15,483,721 41,300,183 59,597,538 474,722,904

49,445,14871,963,873

563,294274,062401,496

3,216,5472,003,348

0212,333

11,000

0207,502,368

C0

00

00

0584,258

04,300,920

305,84414,434,630

0000

812,95580,213

OO

OO

OO

OO

12,504,2027,215,385

OO

OO

OO

O

28,907,344

029,274

10,466,34323,672,908

1,406,38910,317,8318,589,8981,117,5241,109,673

0

022,571

59,911,491307,440,069

2,275,52725,026,523

8,991,3944,334,0713,113,021

28,907,344

13,529,4907,942,701

128,091,101 208,086,626 19,934,562 19,719,587 28,936,618 56,703,137 461,471,631

36,276,353 (14,980,229) (4,450,841) (18,851,976) 12,363,565 2,894,401 13,251,273

01,297,504

(16,199,085)

3,542,38300

06,342,973

(99,496)

019,097,173

0

022,540,284(8,847,069)

432,4244,503,806

(28,852,236)

3,974,80753,781,740

(53,997,886)(14,901,581) 3,542,383 6,243,477 19,097,173 13,693,215 (23,916,006) 3,758,661

21,374,772 (11,437,846) 1,792,636 245,197 26,056,780 (21,021,605) 17,009,934

20,250,286 2,666,731 2,724,724 8,518,034 46,020,303 50,493,304 130,673,382$41,625,058 ($8,771,115)

24

$4,517,360 $8,763,231 $72,077,083 $29,471,699 $147,683,316


RECONCILIATION OF THE STATEMENTOF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESOF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds $17,009,934

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

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives: Expenditures for capital assets $41,250,017 Less current year depreciation (30,381,658) 10,868,359

Repayment of borrowed funds - principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net assets: Principal payments 13,529,490

Expenses and revenues related to the issuance of bonds is amortized over the life of the bonds: Bond issuance costs (79,649) Original issue premium/discount 42,882 (36,767)

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds: Interest expense 81,678 Salary expense associated with compensated absences (2,892,908)

Internal service funds are used by management to charge the costs of certain activities to individual funds. The net (expenses) revenue of the internal service fund is reported with governmental activities 7,653,281

Loss on disposal of capital assets do not reduce financial resources of governmental funds. (1,734,891)

Donations of capital items increase financial resources of governmental funds. 2,366,065 Change in net assets of governmental activities $46,844,241


25


RECONCILIATION OF THE STATEMENTOF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCESOF GOVERNMENT FUNDS TO THESTATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds $17,009,934

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

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost ofthose assets is depreciated over their estimated useful lives:

Expenditures for capital assets $41,250,017Less current year depreciation (30,381,658) 10,868,359

Repayment of borrowed funds - principal is an expenditure in governmental funds, but the repayment reduceslong-term liabilities in the statement of net assets:

Principal payments 13,529,490

Expenses and revenues related to the issuance of bonds is amortized over the life of the bonds:Bond issuance costs (79,649)Original issue premium/discount 42,882 (36,767)

Some expenses reported in the statement of activities do not require the use of current financial resources andtherefore are not reported as expenditures in governmental funds:

Interest expense 81,678Salary expense associated with compensated absences (2,892,908)

Internal service funds are used by management to charge the costs of certain activities to individual funds.The net (expenses) revenue of the internal service fund is reported with governmental activities 7,653,281

Loss on disposal of capital assets do not reduce financial resources of governmental funds. (1,734,891)

Donations of capital items increase financial resources of governmental funds. 2,366,065

Change in net assets of governmental activities $46,844,241


25


GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL

FOR THE YEAR ENDED SEPTEMBER 30, 2005 Variance withFinal Budget

Original Final PositiveBudget Budget Actual (Negative)

Revenues: Taxes $112,034,739 $117,585,940 $111,020,739 ($6,565,201) Licenses and permits 462,977 462,977 639,935 176,958 Intergovernmental 25,618,921 26,051,959 37,080,209 11,028,250 Charges for services 8,547,683 6,572,683 8,329,643 1,756,960 Fines and forfeitures 60,000 60,000 70,477 10,477 Investment income 460,000 485,000 1,331,128 846,128 Special assessments 800,000 800,000 817,469 17,469 Miscellaneous 4,610,344 5,094,038 5,077,854 (16,184) Total revenues 152,594,664 157,112,597 164,367,454 7,254,857

Expenditures: Current: General government 66,014,647 72,206,277 49,445,148 22,761,129 Public safety 72,744,457 72,711,245 71,963,873 747,372 Physical environment 561,612 586,938 563,294 23,644 Transportation 348,109 348,109 274,062 74,047 Economic environment 431,080 496,500 401,496 95,004 Human services 3,591,063 3,587,733 3,216,547 371,186 Culture and recreation 2,955,381 3,021,896 2,003,348 1,018,548 Capital improvements 0 0 0 0 Debt service Principal retirement 212,333 212,333 212,333 0 Interest and fiscal charges 11,000 11,000 11,000 0 Total expenditures 146,869,682 153,182,031 128,091,101 25,090,930

Excess (deficiency) of revenue over (under) expenditures 5,724,982 3,930,566 36,276,353 32,345,787

Other financing sources (uses): Lease proceeds 0 0 0 0 Transfers in 236,428 1,286,257 1,297,504 11,247 Transfers out (15,601,683) (17,224,751) (16,199,085) 1,025,666 Total other financing sources (uses) (15,365,255) (15,938,494) (14,901,581) 1,036,913

Net change in fund balances (9,640,273) (12,007,928) 21,374,772 33,382,700

Fund balances at beginning of year 9,640,273 12,007,928 20,250,286 8,242,358Fund balances (deficit) at end of year $0 $0 $41,625,058 $41,625,058


26


GENERAL FUNDSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesLicenses and permitsIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Capital improvementsDebt service



Other financing sources (uses):Lease proceedsTransfers inTransfers out





OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive(Negative)

$112,034,739462,977

25,618,9218,547,683

60,000460,000800,000

4,610,344

$117,585,940462,977

26,051,9596,572,683

60,000485,000800,000

5,094,038

$111,020,739639,935

37,080,2098,329,643

70,4771,331,128

817,4695,077,854

($6,565,201)176,958

11,028,2501,756,960

10,477846,128

17,469(16,184)

152,594,664 157,112,597 164,367,454 7,254,857

66,014,64772,744,457

561,612348,109431,080

3,591,0632,955,381

0

212,33311,000

72,206,27772,711,245

586,938348,109496,500

3,587,7333,021,896

0

212,33311,000

49,445,14871,963,873

563,294274,062401,496

3,216,5472,003,348

0212,333

11,000

22,761,129747,37223,64474,04795,004

371,1861,018,548

0

00

146,869,682 153,182,031 128,091,101 25,090,930

5,724,982

0236,428

(15,601,683)

3,930,566

01,286,257

(17,224,751)

36,276,353

01,297,504

(16,199,085)

32,345,787

011,247

1,025,666(15,365,255) (15,938,494) (14,901,581) 1,036,913

(9,640,273) (12,007,928) 21,374,772 33,382,700

9,640,273 12,007,928 20,250,286 8,242,358$0 $0 $41,625,058

26

$41,625,058


DISASTER RECOVERYSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $221,690,517 $192,740,395 ($28,950,122) Investment income 0 0 346,533 346,533 Miscellaneous 0 0 19,469 19,469 Total revenues 0 221,690,517 193,106,397 (28,584,120)

Expenditures: Current: Public safety 0 261,598,615 207,502,368 54,096,247 Debt service Interest and fiscal charges 0 0 584,258 (584,258) Total expenditures 0 261,598,615 208,086,626 53,511,989

Excess (deficiency) of revenue over (under) expenditures 0 (39,908,098) (14,980,229) 24,927,869

Other financing sources (uses): Note proceeds 0 20,000,000 0 (20,000,000) Insurance reimbursement 0 9,675,118 3,542,383 (6,132,735) Total other financing sources (uses) 0 29,675,118 3,542,383 (26,132,735)

Net change in fund balances 0 (10,232,980) (11,437,846) (1,204,866)

Fund balances at beginning of year 0 10,232,980 2,666,731 (7,566,249)Fund balances (deficit) at end of year $0 $0 ($8,771,115) ($8,771,115)


27


DISASTER RECOVERYSTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment incomeMiscellaneous

Total revenues


Public safetyDebt service

Interest and fiscal chargesTotal expenditures


Other financing sources (uses):Note proceedsInsurance reimbursement





OriginalBudget

FinalBudget Actual


Positive(Negative)

$221,690,51700

$192,740,395346,533

19,469

($28,950,122)346,533

19,469

00

00

221,690,517 193,106,397 (28,584,120)

261,598,615

0

207,502,368

584,258

54,096,247

(584,258)261,598,615 208,086,626 53,511,989

(39,908,098) (14,980,229) 24,927,869O

O 20,000,0009,675,118

03,542,383

(20,000,000)(6,132,735)

29,675,118 3,542,383 (26,132,735)

(10,232,980) (11,437,846) (1,204,866)

10,232,980 2,666,731 (7,566,249)$0

27

($8,771,115) ($8,771,115)


TRANSPORTATION AND DRAINAGESTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $6,886,732 $6,886,732 $7,345,534 $458,802 Intergovernmental 4,804,122 4,804,122 5,085,145 281,023 Charges for services 832,463 1,063,470 1,050,457 (13,013) Investment income 72,410 72,410 119,666 47,256 Special assessments 475,166 655,456 885,101 229,645 Miscellaneous 2,485,778 521,932 997,818 475,886 Total revenues 15,556,671 14,004,122 15,483,721 1,479,599

Expenditures: Current: Public safety 4,317,250 4,398,842 4,300,920 97,922 Physical environment 251,562 676,533 305,844 370,689 Transportation 16,379,038 16,232,760 14,434,630 1,798,130 Debt service Principal retirement 812,955 812,955 812,955 0 Interest and fiscal charges 80,213 80,213 80,213 0 Total expenditures 21,841,018 22,201,303 19,934,562 2,266,741

Excess (deficiency) of revenue over (under) expenditures (6,284,347) (8,197,181) (4,450,841) 3,746,340

Other financing sources (uses): Transfers in 6,538,202 6,642,973 6,342,973 (300,000) Transfers out (27,000) (99,496) (99,496) 0 Total other financing sources (uses) 6,511,202 6,543,477 6,243,477 (300,000)

Net change in fund balances 226,855 (1,653,704) 1,792,636 3,446,340

Fund balances at beginning of year (226,855) 1,653,704 2,724,724 1,071,020Fund balances (deficit) at end of year $0 $0 $4,517,360 $4,517,360


28


TRANSPORTATION AND DRAINAGESTATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL



Revenues:Taxes $6,886,732 $6,886,732 $7,345,534 $458,802Intergovernmental 4,804,122 4,804,122 5,085,145 281,023Charges for services 832,463 1,063,470 1,050,457 (13,013)Investment income 72,410 72,410 119,666 47,256Special assessments 475,166 655,456 885,101 229,645Miscellaneous 2,485,778 521,932 997,818 475,886

Total revenues 15,556,671 14,004,122 15,483,721 1,479,599


Public safety 4,317,250 4,398,842 4,300,920 97,922Physical environment 251,562 676,533 305,844 370,689Transportation 16,379,038 16,232,760 14,434,630 1,798,130

Debt servicePrincipal retirement 812,955 812,955 812,955 0Interest and fiscal charges 80,213 80,213 80,213 0Total expenditures 21,841,018 22,201,303 19,934,562 2,266,741

Excess (deficiency) of revenue over (under)expenditures (6,284,347) (8,197,181) (4,450,841) 3,746,340

Other financing sources (uses):Transfers in 6,538,202 6,642,973 6,342,973 (300,000)Transfers out (27,000) (99,496) (99,496) 0

Total other financing sources (uses) 6,511,202 6,543,477 6,243,477 (300,000)

Net change in fund balances 226,855 (1 ,653,704) 1,792,636 3,446,340

Fund balances at beginning of year (226,855) 1,653,704 2,724,724 1,071,020Fund balances (deficit) at end of year $0 $0 $4,517,360 $4,517,360


28


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

SEPTEMBER 30, 2005Business-type Activities

EconomicDevelopment Governmental

and ActivitiesASSETS Solid Waste Civic Center Industrial Other Non-major Total Internal Service FundCurrent assets: Cash and cash equivalents $2,025 $700,319 $0 $1,050 $703,394 $33,880 Equity in pooled cash and investments 7,471,815 673,010 867,016 8,168,696 17,180,537 12,271,538 Receivables (net of allowance for uncollectibles) 946,641 31,178 0 3,185,963 4,163,782 1,445,090 Due from other funds 0 0 0 0 0 1,721,538 Due from other governmental units 0 0 176,852 9,500 186,352 2,766 Inventory 0 51,617 0 188,924 240,541 0 Restricted cash and cash equivalents 262,935 0 0 272,146 535,081 85,693 Other current assets 0 30,988 0 0 30,988 0 Total current assets 8,683,416 1,487,112 1,043,868 11,826,279 23,040,675 15,560,505

Noncurrent assets: Restricted assets Cash and cash equivalents 5,980,323 0 0 0 5,980,323 0 Capital assets: Land and other non-depreciable assets 3,422,172 0 3,428,530 6,443 6,857,145 0 Capital assets (net of depreciation) 18,515,376 13,437,224 4,685,271 2,167,521 38,805,392 6,841 Advance to other funds 0 0 0 0 0 1,933,535 Total noncurrent assets 27,917,871 13,437,224 8,113,801 2,173,964 51,642,860 1,940,376 Total assets 36,601,287 14,924,336 9,157,669 14,000,243 74,683,535 17,500,881

LIABILITIESCurrent liabilities: Vouchers payable 695,797 221,740 8,718 144,654 1,070,909 383,720 Contracts payable 222,151 0 0 0 222,151 0 Salaries, benefits and compensated absences payable 91,473 51,906 0 257,328 400,707 1,735,420 Due to other funds 543 0 0 0 543 13 Due to other governmental units 1,054 0 0 7,768 8,822 61,108 Current portion of notes, loans, and bonds payable 394,787 0 0 0 394,787 0 Liabilities payable from restricted assets 262,935 0 0 272,146 535,081 85,693 Other current liabilities 2,022 297,334 500,398 40,493 840,247 24,874 Total current liabilities 1,670,762 570,980 509,116 722,389 3,473,247 2,290,828

Non-current liabilities: Compensated absences 433,153 0 0 980,908 1,414,061 15,467,652 Advance from other funds 0 138,295 1,933,535 0 2,071,830 0 Notes, bonds, and loans payable 0 0 0 0 0 0 Landfill closure and postclosure care payable 14,394,523 0 0 0 14,394,523 0 Claims liabilities 0 0 0 0 0 13,901,801 Total non-current liabilities 14,827,676 138,295 1,933,535 980,908 17,880,414 29,369,453 Total liabilities 16,498,438 709,275 2,442,651 1,703,297 21,353,661 31,660,281

NET ASSETSInvested in capital assets, net of related debt 21,542,761 13,298,929 6,180,266 2,173,964 43,195,920 6,841Unrestricted (1,439,912) 916,132 534,752 10,122,982 10,133,954 (14,166,241) Total net assets $20,102,849 $14,215,061 $6,715,018 $12,296,946 $53,329,874 ($14,159,400)


29


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

SEPTEMBER 30, 2005

ASSETSCurrent assets:

Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventoryRestricted cash and cash equivalentsOther current assets

Total current assets

Noncurrent assets:Restricted assets

Cash and cash equivalentsCapital assets:

Land and other non-depreciable assetsCapital assets (net of depreciation)

Advance to other fundsTotal noncurrent assets

Total assets

LIABILITIESCurrent liabilities:

Vouchers payableContracts payableSalaries, benefits and compensated absences payableDue to other fundsDue to other governmental unitsCurrent portion of notes, loans, and bonds payableLiabilities payable from restricted assetsOther current liabilities

Total current liabilities

Non—current liabilities:Compensated absencesAdvance from other fundsNotes, bonds, and loans payableLandfill closure and postclosure care payableClaims liabilities

Total non-current liabilitiesTotal liabilities

NET ASSETSInvested in capital assets, net of related debtUnrestricted

Total net assets

The accompanying notes are an integral partof the financial statements.


Solid Waste

$2,0257,471,815

946,641000

262,9350

Civic Center

EconomicDevelopment

andIndustrial Other Non—ma'or

$700,319 $0673,010 867,016 8,168,696

31,178 0 3,185,9630 0 00 176,852 9,500

51,617 0 188,9240 0 272,146

30,988 0 0

$1,050

Total

$703,39417,180,5374,163,782

0186,352240,541535,081

30,988


Internal Service Fund

$33,88012,271,538

1,445,0901,721,538

2,7660

85,6930

8,683,416 1,487,112 1,043,868 11,826,279 23,040,675 15,560,505

5,980,323

3,422,17218,515,376

0

0 3,428,530 6,44313,437,224 4,685,271 2,167,521

0 0 0

5,980,323

6,857,14538,805,392

0

06,841

1,933,53527,917,871 13,437,224 8,113,801 2,173,964 51,642,860 1,940,37636,601,287 14,924,336 9,157,669 14,000,243 74,683,535 17,500,881

695,797222,151

91,473543

1,054394,787262,935

2,022

221,740 8,718 144,6540 0 0

51,906 0 257,3280 0 00 0 7,7680 0 00 0 272,146

297,334 40,493

1,070,909222,151400,707

5438,822

394,787535,081840,247

383,7200

1,735,42013

61,1080

85,69324,874

1,670,762 570,980 722,389 3,473,247 2,290,828

433,15300

14,394,5230

0 0 980,908138,295 1,933,535 0

0 0 00 0 00 0 0

1,414,0612,071,830

014,394,523

0

15,467,652000

13,901,80114,827,676 138,295 1,933,535 980,908 17,880,414 29,369,45316,498,438 709,275 2,442,651 1,703,297 21,353,661 31,660,281

21,542,761(1,439,912)

13,298,929916,132

6,180,266534,752

2,173,96410,122,982

43,195,92010,133,954

6,841(14,166,241)

$20,102,849 $14,215,061 $6,715,018 $12,296,946

29

$53,329,874 ($14,159,400)


STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2005 Business-type Activities

EconomicDevelopment Governmental

and ActivitiesSolid Waste Civic Center Industrial Other Non-major Total Internal Service Fund

Operating revenues: Licenses and permits $1,590,229 $0 $0 $7,183,005 $8,773,234 $0 Intergovernmental 0 0 379,170 0 379,170 0 Charges for services 11,993,074 4,146,358 0 12,282,539 28,421,971 10,330,916 Fines and forfeitures 0 0 0 27,115 27,115 0 Miscellaneous income 46,996 22,205 0 150,817 220,018 549,125 Total operating revenues 13,630,299 4,168,563 379,170 19,643,476 37,821,508 10,880,041

Operating expenses: Personal services 3,008,731 0 0 8,407,302 11,416,033 1,140,593 Contractual services 1,268,114 4,244,562 0 477,295 5,989,971 3,663,461 Claims expense 0 0 0 0 0 (3,771,589) Materials and supplies 475,638 0 0 602,332 1,077,970 123,017 Travel and vehicle costs 40,627 0 0 75,289 115,916 4,561 Depreciation 1,974,044 1,236,816 484,164 808,522 4,503,546 8,634 Bad debts 0 24,019 0 4,500,967 4,524,986 0 Memberships, dues and subscriptions 36,596 0 0 34,987 71,583 8,490 Insurance and bonds 243,370 96,794 0 103,044 443,208 1,928,122 Communications and freight services 43,013 0 0 131,106 174,119 5,840 Utilities 307,209 0 3,289 25,798 336,296 0 Maintenance 299,171 68,813 0 403,783 771,767 10,994 Rentals and leases 106,849 0 0 166,393 273,242 22,964 Provision for closure and long-term care 5,419,014 0 0 0 5,419,014 0 Advertising and promotion 227,616 0 0 1,286 228,902 0 Miscellaneous 472,298 34,096 0 627,209 1,133,603 511,088 Total operating expenses 13,922,290 5,705,100 487,453 16,365,313 36,480,156 3,656,175Operating income (loss) (291,991) (1,536,537) (108,283) 3,278,163 1,341,352 7,223,866

Non-operating revenues (expenses): Interest income 331,960 19,134 19,856 138,824 509,774 432,099 Interest expense (9,689) (7,699) (121,663) 0 (139,051) 0 Other debt service costs 0 0 0 0 0 0 Gain (loss) on disposal of assets 44,790 (137,944) 356,471 (16,059) 247,258 (2,684) Grant revenue 0 0 0 0 0 0 Grant expense 0 0 0 0 0 0 Other income 0 0 0 337 337 0 Total non-operating revenues (expenses) 367,061 (126,509) 254,664 123,102 618,318 429,415

Income (loss) before contributions and transfers 75,070 (1,663,046) 146,381 3,401,265 1,959,670 7,653,281

Capital contributions 408,924 2,311 3,709 48,010 462,954 1,757 Transfers in 0 775,936 0 0 775,936 0 Transfers (out) (400,140) 0 0 (159,650) (559,790) 0 Total contributions and transfers 8,784 778,247 3,709 (111,640) 679,100 1,757

Change in net assets 83,854 (884,799) 150,090 3,289,625 2,638,770 7,655,038

Net assets at beginning of year (restated) 20,018,995 15,099,860 6,564,928 9,007,321 50,691,104 (21,814,438)Net assets at ending of year $20,102,849 $14,215,061 $6,715,018 $12,296,946 $53,329,874 ($14,159,400)


30


STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSPROPRIETARY FUNDS


Operating revenues:Licenses and permitsIntergovernmentalCharges for servicesFines and forfeituresMiscellaneous income

Total operating revenues

Operating expenses:Personal servicesContractual sen/icesClaims expenseMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesProvision for closure and long-term careAdvertising and promotionMiscellaneous

Total operating expensesOperating income (loss)

Non-operating revenues (expenses):Interest incomeInterest expenseOther debt service costsGain (loss) on disposal of assetsGrant revenueGrant expenseOther income

Total non-operating revenues (expenses)

Income (loss) before contributions and transfers

Capital contributionsTransfers inTransfers (out)

Total contributions and transfers

Change in net assets

Net assets at beginning of year (restated)Net assets at ending of year


Solid Waste

$1,590,2290

11,993,0740

46,996

Civic Center

$00

4,146,3580

22,205

EconomicDevelopment

andIndustrial

$0379,170

0OO

Other Non-ma'or

$7,183,0050

12,282,53927,115

150,817

Total

$8,773,234379,170

28,421,97127,115

220,018



$00

10,330,9160

549,12513,630,299 4,168,563 379,170 19,643,476 37,821,508 10,880,041

3,008,7311,268,114

0475,638

40,6271,974,044

036,596

243,37043,013

307,209299,171106,849

5,419,014227,616472,298

04,244,562

0O0

1,236,81624,019

096,794

34,096

3,289OOOO0

8,407,302477,295

0602,332

75,289808,522

4,500,96734,987

103,044131,10625,798

403,783166,393

01 ,286

627,209

11,416,0335,989,971

01,077,970

115,9164,503,5464,524,986

71,583443,208174,119336,296771,767273,242

5,419,014228,902

1,133,603

1,140,5933,663,461

(3,771,569)123,017

4,5616,634

06,490

1,928,1225,640

010,99422,964

00

511,08813,922,290 5,705,100 487,453 16,365,313 36,480,156 3,656,175

(291,991) (1,536,537) (108,263) 3,278,163 1,341,352 7,223,866

331,960(9,689)

044,790

0o0

19,134(7,699)

0(137,944)

0o0

19,856(121,663)

0356,471

0o0

138,824 509,774(139,051)

0247,256

0o

337

432,09900

(2,684)ooo

367,061 (126,509) 254,664 123,102 618,318 429,415

75,070 (1,663,046) 146,381 3,401,265 1,959,670 7,653,281

406,9240

(400,140)

2,311775,936

0

3,709O0

48,0100

(159,650)

462,954775,936

(559,790)

1,757OO

8,784 778,247 3,709 (111,640) 679,100 1,757

83,854 (664,799) 150,090 3,289,625 2,638,770 7,655,038

20,018,995 15,099,860 6,564,928 9,007,321 50,691,104 (21,814,438)$20,102,849


$14,215,061

30

$6,715,018 $12,296,946 $53,329,874 ($14,159,400)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2005 Business-type ActivitiesEconomic

Development Governmentaland Activities

Solid Waste Civic Center Industrial Other Non-major Total Internal Service FundCash flows from operating activities: Cash received from customers $13,847,122 $4,056,573 $1,201,865 $19,235,620 $38,341,180 $8,587,949 Cash payments to suppliers for goods and services (3,594,528) (4,496,502) (12,718) (7,126,749) (15,230,497) (6,629,973) Cash payments to employees for services (2,979,688) 51,906 0 (8,250,931) (11,178,713) (391,264) Other non-operating revenues (expenses) 0 0 0 92,079 92,079 0 Net cash provided by (used in) operating activities 7,272,906 (388,023) 1,189,147 3,950,019 12,024,049 1,566,712

Cash flows from noncapital financing activities: Transfers in 0 775,936 0 0 775,936 0 Transfers out (400,140) 0 0 (159,650) (559,790) 0 Principal (paid)/received on interfund advance 521,231 (64,847) (521,231) 0 (64,847) 1,170,959 Interest (paid)/received on interfund advance 0 (7,699) (121,663) 0 (129,362) 116,004 Net cash provided by (used in) noncapital financing activities 121,091 703,390 (642,894) (159,650) 21,937 1,286,963

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (1,361,793) (179,352) (758,877) (284,509) (2,584,531) 0 Principal paid on revenue bonds, notes and lease purchase contracts (394,788) 0 0 0 (394,788) 0 Interest paid on revenue bonds, notes and lease purchase contracts (9,689) 0 0 0 (9,689) 0 Proceeds from sale of assets 44,790 23,256 692,552 1,050 761,648 0 Net cash used in capital and related financing activities (1,721,480) (156,096) (66,325) (283,459) (2,227,360) 0

Cash flow from investing activities: Interest on investments 331,960 19,134 19,856 138,824 509,774 316,095 Net cash provided by investing activities 331,960 19,134 19,856 138,824 509,774 316,095

Net increase (decrease) in cash & cash equivalents 6,004,477 178,405 499,784 3,645,734 10,328,400 3,169,770

Cash and cash equivalents at beginning of year 7,712,621 1,194,924 367,232 4,796,158 14,070,935 9,221,341Cash and cash equivalents at end of year $13,717,098 $1,373,329 867,016$ $8,441,892 $24,399,335 $12,391,111

Non-cash investing, capital and financing activities Capital contributions $408,924 $2,311 $3,709 $48,010 $462,954 $1,757The accompanying notes are an integral part of the financial statements. (Continued)

31


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS


Cash flows from operating activities:Cash received from customersCash payments to suppliers for goods and servicesCash payments to employees for servicesOther non-operating revenues (expenses)

Net cash provided by (used in) operating activities

Cash flows from noncapital financing activities:Transfers inTransfers outPrincipal (paid)/received on interfund advanceInterest (paid)/received on interfund advanceNet cash provided by (used in) noncapital financing activities

Cash flows from capital and related financing activities:Acquisition and construction of capital assetsPrincipal paid on revenue bonds, notes and lease purchase contractsInterest paid on revenue bonds, notes and lease purchase contractsProceeds from sale of assetsNet cash used in capital and related financing activities

Cash flow from investing activities:Interest on investmentsNet cash provided by investing activities

Net increase (decrease) in cash & cash equivalents

Cash and cash equivalents at beginning of yearCash and cash equivalents at end of year

Non-cash investing, capital and financing activitiesCapital contributions

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


Solid Waste

$13,847,122(3,594,528)(2,979,688)

0

EconomicDevelopment

andCivic Center Industrial Other Non-ma'or

$4,056,573 $1,201,865 $19,235,620(4,496,502) (12,718) (7,126,749)

51,906 0 (8,250,931)0 0 92,079

Total

$38,341,180(15,230,497)(11,178,713)

92,079



$8,587,949(6,629,973)

(391,264)0

7,272,906 (388,023) 1,189,147 3,950,019 12,024,049 1,566,712

0(400,140)521,231

0

775,936 0 00 0 (159,650)

(64,847) (521 ,231) 0(7,699) (121,663) 0

775,936(559,790)

(64,847)(129,362)

00

1,170,959116,004

121,091

(1,361,793)(394,788)

(9,689)44,790

703,390 (642,894) (159,650)

(179,352) (758,877) (284,509)0 0 00 0 0

23,256 692,552 1,050

21,937

(2,584,531)(394,788)

(9,689)761,648

1,286,963

(1,721,480) (156,096) (66,325) (283,459) (2,227,360) OO

OO

O

331,960331,960

19,134 19,856 138,82419,134 19,856 138,824

509,774509,774

316,095316,095

6,004,477

7,712,621

178,405 499,784 3,645,734

1,194,924 367,232 4,796,158

10,328,400

14,070,935

3,169,770

9,221,341$13,717,098

$408,924

$1,373,329 $ 867,016 $8,441,892

$2,311 $3,709 $48,010

31

$24,399,335

$462,954

$12,391,111

$1,757(Continued)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS Business-type Activities(CONTINUED) EconomicFOR THE YEAR ENDED SEPTEMBER 30, 2005 Development Governmental

and ActivitiesSolid Waste Civic Center Industrial Other Non-major Total Internal Service Fund

Reconciliation of cash and cash equivalents at end of year to Statement of Net Assets: Current assets: Cash and cash equivalents $2,025 $700,319 $0 $1,050 $703,394 $33,880 Equity in pooled cash and investments 7,471,815 673,010 867,016 8,168,696 17,180,537 12,271,538 Restricted assets: Cash and cash equivalents 6,243,258 0 0 272,146 6,515,404 85,693 Total cash and cash equivalents at end of year $13,717,098 $1,373,329 867,016$ $8,441,892 $24,399,335 $12,391,111

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) ($291,991) ($1,536,537) ($108,283) $3,278,163 $1,341,352 $7,223,866 Other non-operating revenues 0 0 0 337 337 0 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 1,974,044 1,236,816 484,164 808,522 4,503,546 8,634 Provision for uncollectible accounts 0 24,019 0 4,500,967 4,524,986 0 (Increase) decrease in assets: Accounts receivable 174,883 482,093 0 (4,940,080) (4,283,104) (606,101) Notes receivable 0 0 0 0 0 0 Due from other funds 0 0 0 0 0 (1,721,538) Due from other governments 0 0 672,145 (9,500) 662,645 33,541 Inventory 0 8,031 0 (52,231) (44,200) 0 Prepaid expense 9,680 4,560 0 0 14,240 0 Increase (decrease) in liabilities: Vouchers payable 177,248 (88,484) (9,017) 72,644 152,391 (72,606) Salaries and benefits payable 3,099 51,906 0 34,363 89,368 1,382 Compensated absences 25,944 0 0 122,008 147,952 747,947 Accrued taxes payable 0 47,675 0 0 47,675 0 Deposits 32,260 0 0 132,499 164,759 13,149 Due to other governments (7,215) 0 (412) 2,327 (5,300) (20,865) Deferred revenue 0 (618,102) 150,550 0 (467,552) 2,006 Landfill closure and long-term care payable 5,174,954 0 0 0 5,174,954 0 Claims payable 0 0 0 0 0 (4,042,703)

Net cash provided by (used in) operating activities $7,272,906 ($388,023) 1,189,147$ $3,950,019 $12,024,049 $1,566,712


32


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS(CONTINUED)FOR THE YEAR ENDED SEPTEMBER 30, 2005

Reconciliation of cash and cash equivalents at end of year to Statement OfNet Assets:Current assets:

Cash and cash equivalentsEquity in pooled cash and investments

Restricted assets:Cash and cash equivalents

Total cash and cash equivalents at end of year

Reconciliation of operating income (loss) to net cash provided by(used in) Operating activities:Operating income (loss)Other non-Operating revenuesAdjustments to reconcile Operating income (loss) to net cash

provided by (used in) Operating activities:DepreciationProvision for uncollectible accounts

(Increase) decrease in assets:Accounts receivableNotes receivableDue from other fundsDue from other governmentsInventoryPrepaid expense

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesAccrued taxes payableDepositsDue to other governmentsDeferred revenueLandfill closure and long-term care payableClaims payable


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


Solid Waste

$2,0257,471,815

6,243,258$13,717,098

($291,991)0

1,974,044

9,680

177,2483,099

25,9440

32,260(7,215)

05,174,954

0

$7,272,906

Civic Center

$700,319673,010

0$1,373,329

($1,536,537)0

1,236,81624,019

482,093000

8,0314,560

(88,484)51,906

047,675

00

(618,102)00

($388,023)

32

EconomicDevelopment

andIndustrial

$0867,016

0$ 867,016

($108,283)0

484,164

$ 1,189,147

Other Non-maio_r

$1,0508,168,696

272,146$8,441,892

$3,278,163337

808,5224,500,967

(4,940,080)00

(9,500)(52,231)

0

72,64434,363

122,0080

132,4992,327

000

$3,950,019

Total

$703,39417,180,537

6,515,404$24,399,335

$1,341,352337

4,503,5464,524,986

(4,283,104)00

662,645(44,200)14,240

152,39189,368

147,95247,675

164,759(5,300)

(467,552)5,174,954

0

$12,024,049



$33,88012,271,538

85,693$12,391,111

$7,223,8660

8,6340

(606,101)0

(1,721,538)33,541

00

(72,606)1,382

747,9470

13,149(20,865)

2,0060

(4,042,703)

$1,566,712


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2005

ASSETSCash and cash equivalents $8,052,186Receivables (net of allowance for uncollectibles) 104,115Due from other funds 209,519 Total assets 8,365,820

LIABILITIESPayable to others $1,187,985Due to other governmental units 2,547,000Other current liabilities 4,630,835 Total liabilities 8,365,820

NET ASSETS Net Assets $0


33


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2005

ASSETSCash and cash equivalentsReceivables (net of allowance for uncollectibles)Due from other funds

Total assets

LIABILITIESPayable to othersDue to other governmental unitsOther current liabilities

Total liabilities

N ET ASSETSNet Assets


33

$8,052,186104,115209,519

8,365,820

$1,187,9852,547,0004,630,8358,365,820

$0


STATEMENT OF NET ASSETSCOMPONENT UNITS

SEPTEMBER 30, 2005

Governmental Activities Business-Type ActivitiesTotal

Escambia Escambia Governmental County County and

Civil Service Law Library Santa Rosa Housing Finance Business-Type ASSETS Board Board Island Authority Authority ActivitiesCurrent assets: Cash and cash equivalents $267,000 $88,903 $1,714,757 $730,888 $2,801,548 Investments 0 0 0 3,789,108 3,789,108 Receivables (net of allowance for uncollectibles) 0 323 340,782 76,538 417,643 Due from other governmental units 33,136 7,613 515,389 0 556,138 Other current assets 0 0 37,552 23,280 60,832 Total current assets 300,136 96,839 2,608,480 4,619,814 7,625,269

Noncurrent assets: Restricted assets Cash and cash equivalents 0 0 311,865 514,000 825,865 Investments 0 0 21,102,115 0 21,102,115 Capital assets (net of depreciation) 0 1,092,413 10,209,719 469,718 11,771,850 Supplemented mortgage loans 0 0 0 1,027,200 1,027,200 Bank participation agreements 0 0 0 66,167 66,167 Other noncurrent assets 0 0 562,381 222,659 785,040 Total noncurrent assets 0 1,092,413 32,186,080 2,299,744 35,578,237 Total assets 300,136 1,189,252 34,794,560 6,919,558 43,203,506

LIABILITIESCurrent liabilities: Vouchers payable 0 6,395 595,093 93,405 694,893 Salaries, benefits and compensated absences payable 0 4,535 66,266 0 70,801 Due to other governmental units 300,136 0 748,647 0 1,048,783 Notes, loans, leases and bonds payable 0 0 15,587 0 15,587 Other current liabilities 0 0 117,677 0 117,677 Total current liabilities 300,136 10,930 1,543,270 93,405 1,947,741

Non-current liabilities: Compensated absences 0 0 244,168 0 244,168 Leases payable 0 0 22,227 0 22,227 Deferred revenues 0 0 183,000 0 183,000 Total non-current liabilities 0 0 449,395 0 449,395 Total liabilities 300,136 10,930 1,992,665 93,405 2,397,136

NET ASSETSInvested in capital assets, net of related debt 0 1,092,413 10,171,905 469,718 11,734,036Restricted net assets 0 0 20,279,103 514,000 20,793,103Unrestricted net assets 0 85,909 2,350,887 5,842,435 8,279,231 Total net assets $0 $1,178,322 $32,801,895 $6,826,153 $40,806,370


34


STATEMENT OF NET ASSETSCOMPONENT UNITS

SEPTEMBER 30, 2005


Cash and cash equivalentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other governmental unitsOther current assets


Noncurrent assets:

Restricted assetsCash and cash equivalentsInvestments

Capital assets (net of depreciation)Supplemented mortgage loansBank participation agreementsOther noncurrent assets

Total noncurrent assetsTotal assets

LIABILITIESCurrent liabilities:Vouchers payableSalaries, benefits and compensated absences payableDue to other governmental unitsNotes, loans, leases and bonds payable

Other current liabilitiesTotal current liabilities

Non-current liabilities:Compensated absencesLeases payableDeferred revenues


NET ASSETSInvested in capital assets, net of related debt

Restricted net assetsUnrestricted net assets

Total net assets


Governmental Activities Business-Type Activities

Civil ServiceBoard

EscambiaCounty

Law LibraryBoard

Santa RosaIsland Authority

EscambiaCounty

Housing FinanceAuthority

TotalGovernmental

andBusiness-Type

Activities

$267,00000

33,1360

$88,9030

3237,613

0

$1,714,7570

340,782515,38937,552

$730,8883,789,108

76,5380

23,280

$2,801,5483,789,108

417,643556,138

60,832300,136 96,839 2,608,480 4,619,814 7,625,269

00

1,092,413000

311,86521,102,11510,209,719

00

562,381

514,0000

469,7181,027,200

66,167222,659

825,86521,102,11511,771,8501,027,200

66,167785,040

OO

OO

OO

O

1,092,413 32,186,080 2,299,744 35,578,237300,136 1,189,252 34,794,560 6,919,558 43,203,506

6,3954,535

595,09366,266

748,64715,587

117,677

694,89370,801

1,048,78315,587

117,67710,930 1,543,270 1,947,741

244,16822,227

183,000

244,16822,227

183,000

00

00

00

00

449,395 00

00

449,395300,136 10,930 1,992,665 93,405 2,397,136

1,092,4130

85,909

10,171,90520,279,1032,350,887

469,718514,000

5,842,435

11,734,03620,793,103

8,279,231$0 $1,178,322

34

$32,801,895 $6,826,153 $40,806,370


STATEMENT OF ACTIVITIESCOMPONENT UNITS

FOR THE YEAR ENDED SEPTEMBER 30, 2005 Program Revenues

Operating CapitalCharges for Grants and Grants and

Expenses Services Contributions ContributionsFunction/Program ActivitiesGovernmental Activities: Civil Service Board $1,267,427 $1,051,242 $0 $0 Escambia County Law Library 115,737 84,869 0 0 Total Governmental activities 1,383,164 1,136,111 0 0

Business-type activities: Santa Rosa Island Authority 5,701,077 4,036,405 1,001,215 0 Housing Finance Authority 1,729,324 2,040,285 0 0 Total business-type activities 7,430,401 6,076,690 1,001,215 0 Total component units $8,813,565 $7,212,801 $1,001,215 $0

General RevenuesInvestment earningsMiscellaneousSale of assets Total general revenues Change in net assetsNet assets - beginning (restated)Net assets - ending


35


STATEMENT OF ACTIVITIESCOMPONENT UNITS


Function/Program ActivitiesExpenses

Program Revenues

OperatingGrants and

ContributionsCharges for

Services

CapitalGrants and

Contributions

Governmental Activities:Civil Service BoardEscambia County Law Library

Total Governmental activities

Business-type activities:Santa Rosa Island AuthorityHousing Finance AuthorityTotal business-type activitiesTotal component units

$1,267,427115,737

$1,051,242 $084,869 0

$00

1,383,164

5,701,0771,729,324

1,136,111 0

4,036,405 1,001,2152,040,285 0

7,430,401 6,076,690 1,001,215$8,813,565 $7,212,801 $1,001,215 $0


35

General RevenuesInvestment earningsMiscellaneousSale of assets

Total general revenuesChange in net assets

Net assets - beginning (restated)Net assets - ending

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities Business-type ActivitiesCivil Service Law Santa Rosa Housing Finance

Board Library Island Authority Authority Totals

($216,185) $0 $0 $0 ($216,185)0 (30,868) 0 0 (30,868)

(216,185) (30,868) 0 0 (247,053)

0 0 (663,457) 0 (663,457)0 0 0 310,961 310,9610 0 (663,457) 310,961 (352,496)

(216,185) (30,868) (663,457) 310,961 (599,549)

9,682 1,081 54,574 140,729 206,0665,468 1,876 0 73,657 81,001

0 0 (40,688) (1,593) (42,281)15,150 2,957 13,886 212,793 244,786

(201,035) (27,911) (649,571) 523,754 (354,763)201,035 1,206,233 33,451,466 6,302,399 41,161,133

$0 $1,178,322 $32,801,895 $6,826,153 $40,806,370

36

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities Business-type ActivitiesCivil Service

BoardLaw

LibrarySanta Rosa

Island AuthorityHousing Finance

Authority Totals

($216,185)0

$0(30,868)

$00

$0 ($216,185)(30,868)

(216,185)

00

(30,868) 0

(663,457)0 310,961

(247,053)

(663,457)310,961

0 (663,457) 310,961 (352,496)(216,185) (30,868) (663,457) 310,961 (599,549)

9,6825,468

0

1,0811,876

0

54,5740

(40,688)

140,72973,657(1,593)

206,06681,001

(42,281)15,150 2,957 13,886 212,793 244,786

(201,035)201,035

(27,911)1,206,233

(649,571)33,451,466

523,7546,302,399

(354,763)41,161,133

$0 $1,178,322 $32,801,895 $6,826,153

36

$40,806,370

NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS


NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2005

37

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Escambia County, Florida (the County) is a political subdivision of the State of Florida created pursuant to Chapter 7 of the Florida Statutes. The County is governed by a five member Board of County Commissioners (the Board), elected from single-member districts. The Board has no powers other than those expressly vested in it by State Statute and their governmental powers cannot be delegated. The Board appoints an administrator to administer all policies emanating from its statutory powers and authority. In addition to the Board, there are five elected Constitutional Officers, pursuant to Article 8, Section 1(d), of the Constitution of the State of Florida: Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, and Supervisor of Elections. The accounting policies of the County conform to accounting principles generally accepted in the United States (US) as applicable to governments. The following is a summary of the more significant accounting policies. A. Financial Reporting Entity These combined financial statements include the operations of the Board of County Commissioners, Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections and those separately administered organizations for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government operations. Discretely presented component units are reported in a separate column in the government-wide financial statements to emphasize that they are legally separate from the government. Blended Component Units Community Redevelopment Agency (CRA) – In 1995, the Board of County Commissioners adopted Ordinance No. 95-6 which established the Community Redevelopment Agency (CRA) of Escambia County pursuant to “The Community Redevelopment Act of 1969”. The Board serves as the CRA Board and has all rights, powers, duties, privileges and immunities authorized by the Act. The CRA is reported as a special revenue fund. Five redevelopment areas are included under the CRA jurisdiction. Discretely Presented Component Units Governmental Fund Type: Escambia County Civil Service Board – The Escambia County Civil Service Board (CSB), established by the provisions of Chapter 83-405 Laws of Florida, is responsible for the administration of the career civil service system for certain employees of Escambia County and the Emerald Coast Utilities Authority. The governing body is not substantively the same as that of Escambia County. The Board consists of five (5) members, appointed by the Governor to serve four (4) year terms. Although the CSB is a separate legal entity that does not operate for the exclusive use of Escambia County, the CSB is fiscally dependent on Escambia County. Therefore, the operations of the CSB are reported as a discrete component unit in this report. Separate financial statements for the CSB can be obtained at 3300 North Pace Blvd., Ste. 172, Pensacola, Florida 32505. The Civil Service Board ceased operations at the close of business on September 30, 2005. Substantially all assets, liabilities, and fund balances (net assets) were transferred to Escambia County.


NOTES TO COMBINED FINANCIAL STATEMENTSSEPTEMBER 30, 2005

NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Escambia County, Florida (the County) is a political subdivision of the State of Florida created pursuant toChapter 7 of the Florida Statutes. The County is governed by a five member Board of CountyCommissioners (the Board), elected from single-member districts. The Board has no powers other thanthose expressly vested in it by State Statute and their governmental powers cannot be delegated. TheBoard appoints an administrator to administer all policies emanating from its statutory powers andauthority. In addition to the Board, there are five elected Constitutional Officers, pursuant to Article 8,Section 1(d), of the Constitution of the State of Florida: Clerk of the Circuit Court, Sheriff, Tax Collector,Property Appraiser, and Supervisor of Elections.

The accounting policies of the County conform to accounting principles generally accepted in the UnitedStates (US) as applicable to governments. The following is a summary of the more significant accountingpolicies.

A. Financial Reporting Entity

These combined financial statements include the operations of the Board of County Commissioners,Clerk of the Circuit Court, Sheriff, Tax Collector, Property Appraiser, Supervisor of Elections and thoseseparately administered organizations for which the government is considered to be financiallyaccountable. Blended component units, although legally separate entities, are, in substance, part of thegovernment operations. Discretely presented component units are reported in a separate column in thegovernment-wide financial statements to emphasize that they are legally separate from the government.

Blended Component Units

Community Redevelopment Agency (CRA) — In 1995, the Board of County Commissioners adoptedOrdinance No. 95-6 which established the Community Redevelopment Agency (CRA) of EscambiaCounty pursuant to “The Community Redevelopment Act of 1969”. The Board serves as the CRA Boardand has all rights, powers, duties, privileges and immunities authorized by the Act. The CRA is reportedas a special revenue fund. Five redevelopment areas are included under the CRAjurisdiction.

Discretely Presented Component Units

Governmental Fund Type:

Escambia County Civil Service Board — The Escambia County Civil Service Board (CSB), establishedby the provisions of Chapter 83-405 Laws of Florida, is responsible for the administration of the careercivil service system for certain employees of Escambia County and the Emerald Coast Utilities Authority.The governing body is not substantively the same as that of Escambia County. The Board consists offive (5) members, appointed by the Governor to serve four (4) year terms. Although the CSB is aseparate legal entity that does not operate for the exclusive use of Escambia County, the CSB is fiscallydependent on Escambia County. Therefore, the operations of the CSB are reported as a discretecomponent unit in this report. Separate financial statements for the CSB can be obtained at 3300 NorthPace Blvd., Ste. 172, Pensacola, Florida 32505. The Civil Service Board ceased operations at the closeof business on September 30, 2005. Substantially all assets, liabilities, and fund balances (net assets)were transferred to Escambia County.

37


NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2005

38

Escambia County Law Library Board – The Escambia County Law Library Board, created under Special Act, Chapter 69-1048, Laws of Florida, provides for the maintenance of a central law library for the use of citizens, county officials, judges and officers of the courts of Escambia County. The operations of the Law Library Board are funded by collection of certain court fees by the Clerk of the Circuit Court on civil cases filed in the courts in addition to other costs provided by law and is therefore fiscally dependent on the County to fund its operations. The Law Library Board is composed of two (2) circuit judges, two (2) county judges and one (1) lawyer appointed by the local bar association. The operations of the Law Library are reported in the Law Library Fund, a special revenue fund, as a discrete component unit. Financial statements for the Escambia County Law Library Board can be obtained at 190 Governmental Center, Pensacola, Florida 32502-5773. Proprietary Fund Type: Santa Rosa Island Authority (SRIA) – The Santa Rosa Island Authority (SRIA) was established by the provisions of Chapter 24-500, Laws of Florida, Special Acts of 1947, as amended. The County appoints five (5) members of the Authority’s six (6) member Board, and one (1) member is elected by the eligible voters who are full time residents of the Island. The County approves the Authority’s budget and issuance of debt. The County has veto power over decisions of the Authority. The SRIA serves as the County’s leasing agent for property on Santa Rosa Island owned by the County. The operations of SRIA are reported in the SRIA Fund, a discrete component unit in this report. Financial statements for the SRIA can be obtained at 1 Via Deluna, Pensacola Beach, Florida 32561. Escambia County Housing Finance Authority – The Escambia County Housing Finance Authority (HFA) was created in 1982 by Ordinance No. 80-12 pursuant to Chapter 78-89, Laws of Florida codified as Chapter 159, Part IV, Section 159.601 through 159.23. The County appoints five (5) members of the HFA and must approve by resolution any rules or regulations, the issuance of revenue bonds and all contracts and agreements. The Escambia County HFA and the County are not substantially the same. The HFA does not provide services almost entirely for the County. Therefore, the operations of the Escambia County HFA are reported as a discrete component unit in this report. Financial statements for the Escambia County HFA can be obtained at 25 West Cedar Street, Suite 530, Pensacola, Florida 32502-5945. Because these component units have been reported as a part of the County, there are limited instances where special note references or separation will be required. If no separate note reference or categorization is made, the user should assume that information presented is equally applicable. Joint Ventures – As defined in Governmental Accounting Standards Board (GASB) Statement Number 14, a joint venture is a separate legal entity or other organization that results from a contractual arrangement (or interlocal agreement) and that is owned, operated or governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain (a) an on-going financial interest or (b) an on-going financial responsibility. The County participates and provides financial support to the following nonequity joint ventures:

Human Relations Commission (HRC) – The Commission was created by an Interlocal Agreement between Escambia County and the City of Pensacola in 1978, pursuant to Florida Statutes, Chapter 163.01, for the purpose of being “responsible for the promotion of fair treatment and equal opportunity to all citizens of the local community.” The Commission is composed of fourteen (14) members; seven (7) selected by the County and seven (7) selected by the City of Pensacola. The duration of this agreement is for a period of two (2) years, with a renewal provision. The County does not control budgeting or financing for the Commission. Separate financial statements are available from the Commission at 29 South Spring St., Pensacola, Florida 32501.


NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)SEPTEMBER 30, 2005

Escambia County Law Library Board — The Escambia County Law Library Board, created underSpecial Act, Chapter 69-1048, Laws of Florida, provides for the maintenance of a central law library forthe use of citizens, county officials, judges and officers of the courts of Escambia County. The operationsof the Law Library Board are funded by collection of certain court fees by the Clerk of the Circuit Court oncivil cases filed in the courts in addition to other costs provided by law and is therefore fiscally dependenton the County to fund its operations. The Law Library Board is composed of two (2) circuit judges, two(2) county judges and one (1) lawyer appointed by the local bar association. The operations of the LawLibrary are reported in the Law Library Fund, a special revenue fund, as a discrete component unit.Financial statements for the Escambia County Law Library Board can be obtained at 190 GovernmentalCenter, Pensacola, Florida 32502-5773.

Proprietary Fund Type:

Santa Rosa Island Authority (SRIA) — The Santa Rosa Island Authority (SRIA) was established by theprovisions of Chapter 24-500, Laws of Florida, Special Acts of 1947, as amended. The County appointsfive (5) members of the Authority’s six (6) member Board, and one (1) member is elected by the eligiblevoters who are full time residents of the Island. The County approves the Authority’s budget andissuance of debt. The County has veto power over decisions of the Authority. The SRIA serves as theCounty’s leasing agent for property on Santa Rosa Island owned by the County. The operations of SRIAare reported in the SRIA Fund, a discrete component unit in this report. Financial statements for theSRIA can be obtained at 1 Via Deluna, Pensacola Beach, Florida 32561.

Escambia County Housing Finance Authority — The Escambia County Housing Finance Authority(HFA) was created in 1982 by Ordinance No. 80-12 pursuant to Chapter 78-89, Laws of Florida codifiedas Chapter 159, Part IV, Section 159.601 through 159.23. The County appoints five (5) members of theHFA and must approve by resolution any rules or regulations, the issuance of revenue bonds and allcontracts and agreements. The Escambia County HFA and the County are not substantially the same.The HFA does not provide services almost entirely for the County. Therefore, the operations of theEscambia County HFA are reported as a discrete component unit in this report. Financial statements forthe Escambia County HFA can be obtained at 25 West Cedar Street, Suite 530, Pensacola, Florida32502-5945.

Because these component units have been reported as a part of the County, there are limited instanceswhere special note references or separation will be required. If no separate note reference orcategorization is made, the user should assume that information presented is equally applicable.

Joint Ventures — As defined in Governmental Accounting Standards Board (GASB) Statement Number14, a joint venture is a separate legal entity or other organization that results from a contractualarrangement (or interlocal agreement) and that is owned, operated or governed by two or moreparticipants as a separate and specific activity subject to joint control in which the participants retain (a)an on-going financial interest or (b) an on-going financial responsibility. The County participates andprovides financial support to the following nonequity joint ventures:

Human Relations Commission (HRC) — The Commission was created by an lnterlocalAgreement between Escambia County and the City of Pensacola in 1978, pursuant to FloridaStatutes, Chapter 163.01, for the purpose of being “responsible for the promotion of fair treatmentand equal opportunity to all citizens of the local community.” The Commission is composed offourteen (14) members; seven (7) selected by the County and seven (7) selected by the City ofPensacola. The duration of this agreement is for a period of two (2) years, with a renewalprovision. The County does not control budgeting or financing for the Commission. Separatefinancial statements are available from the Commission at 29 South Spring St., Pensacola,Florida 32501.

38



39

Pensacola – Escambia County Promotion and Development Commission (PEDC) – This Commission was created in 1967 by Chapter 67-1365, Laws of Florida, amended in 1980 by Chapter 80-579, to promote and develop tourism and industry in Escambia County and in the City of Pensacola. The nine (9) member Commission consists of two (2) members of the Pensacola City Council, two (2) members of the Escambia County Commission, one (1) member of the Century City Council, the President of the Chamber of Commerce (1), one (1) representative of the Committee of 100 or the Tourist Advisory Council, one (1) at-large member appointed by the Pensacola City Council and one (1) at-large member appointed by the Escambia County Commission. The County and the City of Pensacola each contribute funds annually for the operation of the Commission, but neither has control of the budget or finances of the Commission. The Commission has no outstanding debt. Separate financial statements are available from the Pensacola – Escambia County Promotion and Development Commission at 117 West Garden Street, Pensacola, Florida 32593-0550.

Summary financial statements as of September 30, 2005 for the joint ventures are as follows: BALANCE SHEETS SEPTEMBER 30, 2005 HRC PEDC Assets and other debits $46,727 $252,124

Liabilities $10,668 $0 Fund equity and other credits Reserved for restricted assets 5,918 61,198 Unreserved 30,141 190,926 Total fund equity 36,059 252,124 Total liabilities and fund equity $46,727 $252,124

STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR FISCAL YEAR ENDED SEPTEMBER 30, 2005 HRC PEDC Revenues $326,412 $353,580 Expenditures (259,149) (346,283)Excess (deficiency) of revenues over expenditures 67,263 7,297 Fund balance beginning (31,204) 244,827 Fund balance ending $36,059 $252,124



Pensacola — Escambia County Promotion and Development Commission (PEDC) — ThisCommission was created in 1967 by Chapter 67-1365, Laws of Florida, amended in 1980 byChapter 80-579, to promote and develop tourism and industry in Escambia County and in the Cityof Pensacola. The nine (9) member Commission consists of two (2) members of the PensacolaCity Council, two (2) members of the Escambia County Commission, one (1) member of theCentury City Council, the President of the Chamber of Commerce (1), one (1) representative ofthe Committee of 100 or the Tourist Advisory Council, one (1) at-Iarge member appointed by thePensacola City Council and one (1) at-Iarge member appointed by the Escambia CountyCommission. The County and the City of Pensacola each contribute funds annually for theoperation of the Commission, but neither has control of the budget or finances of theCommission. The Commission has no outstanding debt. Separate financial statements areavailable from the Pensacola — Escambia County Promotion and Development Commission at117 West Garden Street, Pensacola, Florida 32593-0550.

Summary financial statements as of September 30, 2005 for the joint ventures are as follows:

BALANCE SHEETSSEPTEMBER 30,2005

HRC PEDC

Assets and other debits $46,727 $252,124

Liabilities M—WFund equity and other credits

Reserved for restricted assets 5,918 61,198Unreserved 30,141 190,926

Total fund equity 36,059 252,124

Total liabilities and fund equity $46,727 $252,124

STATEMENTS OF REVENUES,EXPENDITURES AND CHANGESIN FUND BALANCE FORFISCAL YEAR ENDEDSEPTEMBER 30,2005

RevenuesExpenditu

HR PEDC

$326,412 $353,580res (259,149) (346,283)

Excess (deficiency) of revenues over expenditures 67,263 7,297Fund bala

Fund bala

nce beginning (31,204) 244,827

nce ending $36,059 $252,124

39



40

B. Basic Financial Statements – GASB Statement #34 Government-Wide and Fund Financial

Statements The basic financial statements consist of the government-wide (based on the County as a whole, including its component units) and fund financial statements. Both sets of statements categorize primary activities as either governmental or business-type activities. The government-wide financial statements include a Statement of Net Assets and a Statement of Activities which report on the government as a whole and provide a consolidated financial picture of the government. For the most part, interfund activities are eliminated to avoid distorted financial results. The amounts reported as internal balances represent the residual amounts due between governmental and business-type activities. Fiduciary funds of the government are also eliminated from this presentation since these resources are not available for general government funding purposes. The Statement of Activities reports functional categories of programs provided by the County and demonstrates how and to what degree those programs are supported by specific revenue. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on external fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given program are supported by specific revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. General revenues consist of all taxes and other items collected that help support all functions of Escambia County government. Individual fund financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The County reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Disaster Recovery Fund accounts for financing provided from various State and Federal grants, such as Federal Emergency Management Agency (FEMA). The Transportation and Drainage Fund accounts for monies collected through permits, fees, and certain taxes and assessments. These monies are expended on engineering, street lighting, transportation, and road projects that benefit those citizens of the unincorporated areas of the County. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds.



B. Basic Financial Statements — GASB Statement #34 Government-Wide and Fund FinancialStatements

The basic financial statements consist of the government-wide (based on the County as a whole,including its component units) and fund financial statements. Both sets of statements categorize primaryactivities as either governmental or business-type activities.

The government-wide financial statements include a Statement of Net Assets and a Statement ofActivities which report on the government as a whole and provide a consolidated financial picture of thegovernment. For the most part, interfund activities are eliminated to avoid distorted financial results. Theamounts reported as internal balances represent the residual amounts due between governmental andbusiness-type activities. Fiduciary funds of the government are also eliminated from this presentationsince these resources are not available for general government funding purposes.

The Statement of Activities reports functional categories of programs provided by the County anddemonstrates how and to what degree those programs are supported by specific revenue. Governmentalactivities, which normally are supported by taxes and intergovernmental revenues, are reportedseparately from business-type activities, which rely to a significant extent on external fees and charges forsupport. Likewise, the primary government is reported separately from certain legally separatecomponent units for which the primary government is financially accountable.

The statement of activities demonstrates the degree to which the direct expenses of a given program aresupported by specific revenues. Direct expenses are those that are clearly identifiable with a specificprogram. Program revenues include 1) charges to customers or applicants who purchase, use, or directlybenefit from goods, services, or privileges provided by a given function or segment and 2) grants andcontributions that are restricted to meeting the operational or capital requirements of a particular functionor segment. General revenues consist of all taxes and other items collected that help support allfunctions of Escambia County government.

Individual fund financial statements are provided for governmental funds, proprietary funds and fiduciaryfunds, even though the latter are excluded from the government-wide financial statements. Majorindividual governmental funds and major individual enterprise funds are reported as separate columns inthe fund financial statements.

The County reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financialresources of the general government, except those required to be accounted for in another fund.

The Disaster Recovery Fund accounts for financing provided from various State and Federalgrants, such as Federal Emergency Management Agency (FEMA).

The Transportation and Drainage Fund accounts for monies collected through permits, fees, andcertain taxes and assessments. These monies are expended on engineering, street lighting,transportation, and road projects that benefit those citizens of the unincorporated areas of theCounty.

The Debt Service Fund accounts for the resources accumulated and payments made for principaland interest on long-term debt of governmental funds.

40



41

The Local Option Sales Tax Fund accounts for monies collected pursuant to Florida Statutes 212.055, which authorized counties to impose a one percent (1%) local option infrastructure sales surtax upon taxable transactions occurring within Escambia County, to provide for road and drainage projects and improvements, recreation projects, public safety, expansion of jail and court facilities, and community redevelopment projects.

The County reports the following major proprietary funds:

The Solid Waste Fund accounts for solid waste disposal (landfill) operations, primarily financed through franchise fees and user charges.

The Civic Center Fund accounts for the operation, maintenance and improvements of the County’s Civic Center. The Economic Development and Industrial Fund accounts for the development and operation of the industrial parks of Escambia County.

Additionally, the government reports the following fund types:

The Internal Service Fund accounts for risk management activities provided to other County departments, and for balances and activity related to compensated absences policies of the Clerk and Sheriff.

Agency Funds which are custodial in nature (assets equal liabilities) have no measurement focus since they serve only as clearing accounts for assets held by the County in a custodial or agency capacity for others. Agency funds are utilized by the Clerk of the Circuit Court, the Tax Collector and the Sheriff for various client related funds held by each entity until returned to the client.

C. Basis of Presentation, Basis of Accounting The government-wide financial statements and the proprietary fund and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for certain grant revenues which are recognized as revenues in the same period the grant expenditures occurred. State shared revenues, sales taxes, franchise taxes, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except debt service expenditures and expenditures related to compensated absences and claims and judgments, which are recorded only when payment is due. Capital asset acquisitions are recorded as expenditures in governmental funds. Monies received from issuing long-term debt and acquisitions under capital leases are reported as other financing sources.



The Local Option Sales Tax Fund accounts for monies collected pursuant to Florida Statutes212.055, which authorized counties to impose a one percent (1%) local option infrastructure salessurtax upon taxable transactions occurring within Escambia County, to provide for road anddrainage projects and improvements, recreation projects, public safety, expansion of jail andcourt facilities, and community redevelopment projects.

The County reports the following major proprietary funds:

The Solid Waste Fund accounts for solid waste disposal (landfill) operations, primarily financedthrough franchise fees and user charges.

The Civic Center Fund accounts for the operation, maintenance and improvements of theCounty’s Civic Center.

The Economic Development and Industrial Fund accounts for the development and operation ofthe industrial parks of Escambia County.

Additionally, the government reports the following fund types:

The Internal Service Fund accounts for risk management activities provided to other Countydepartments, and for balances and activity related to compensated absences policies of the Clerkand Sheriff.

Agency Funds which are custodial in nature (assets equal liabilities) have no measurement focussince they serve only as clearing accounts for assets held by the County in a custodial or agencycapacity for others. Agency funds are utilized by the Clerk of the Circuit Court, the Tax Collectorand the Sheriff for various client related funds held by each entity until returned to the client.

C. Basis of Presentation, Basis of Accounting

The government-wide financial statements and the proprietary fund and fiduciary fund financialstatements are reported using the economic resources measurement focus and the accrual basis ofaccounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year forwhich they are levied. Grants and similar items are recognized as revenue as soon as all eligibilityrequirements imposed by the provider have been met.

Governmental fund 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. Forthis purpose, the County considers revenues to be available if they are collected within 60 days of the endof the current fiscal period, except for certain grant revenues which are recognized as revenues in thesame period the grant expenditures occurred. State shared revenues, sales taxes, franchise taxes, andinterest associated with the current fiscal period are all considered to be susceptible to accrual and havebeen recognized as revenues of the current fiscal period. Expenditures generally are recorded when aliability is incurred, except debt service expenditures and expenditures related to compensated absencesand claims and judgments, which are recorded only when payment is due. Capital asset acquisitions arerecorded as expenditures in governmental funds. Monies received from issuing long-term debt andacquisitions under capital leases are reported as other financing sources.

41



42

Escambia County allocates indirect costs to functional activities using various allocation charge methods. Therefore, expenses reported for functional activities include these allocated indirect costs. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Under the terms of some grant agreements, the County funds certain programs by a combination of specific cost-reimbursement grants, categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants, and then by general revenues. The County has elected to follow FASB statements and interpretations issued on or before November 30, 1989, for all governmental and business-type activities and enterprise funds, unless those standards conflict with or contradict guidance of the GASB pronouncements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenue include 1) charges to customers for goods, services, or privileges provided; 2) operating grants and contributions; and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the County’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds and the internal service fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported on nonoperating revenues and expenses. D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents consists of cash on hand, demand deposits, and short-term investments with original maturities of three months or less from date of acquisition. Equity in Pooled Cash and Investments represent assets pooled for investment purposes with each individual fund and/or account maintained on a daily transaction basis. Such investments consist of demand deposits, certificates of deposit, notes of certain instrumentalities, and monies placed with the State Board of Administration’s investment pool. Investment earnings are allocated to the participating funds on a pro-rata basis. As defined by GASB Statement No. 31, money market investments are reported at amortized cost rather than fair value. The County has adopted an investment policy in accordance with specific requirements of Florida Statute 218.415 (1) – (16). This policy authorizes investments in direct obligations of the U.S. Treasury, Federal Instrumentalities, time deposits and savings accounts in qualified public depositories, tax exempt obligations of the State of Florida, the Florida Counties Investment Trust, Securities and Exchange qualified open-end money market mutual funds, and repurchase agreements. The County may also invest in the Local Government Surplus Trust Fund, an external investment pool administered by the Florida State Board of Administration (SBA). Investments held in the SBA consist largely of treasury instruments, federal agency obligations, certificates of deposit, repurchase agreements, bankers’ acceptances, and commercial paper. The SBA pool is a “2-a-7 like” pool as defined in GASB Statement



Escambia County allocates indirect costs to functional activities using various allocation charge methods.Therefore, expenses reported for functional activities include these allocated indirect costs. Elimination ofthese charges would distort the direct costs and program revenues reported for the various functionsconcerned.

Under the terms of some grant agreements, the County funds certain programs by a combination ofspecific cost-reimbursement grants, categorical block grants, and general revenues. Thus, whenprogram expenses are incurred, there are both restricted and unrestricted net assets available to financethe program. It is the County’s policy to first apply cost-reimbursement grant resources to such programs,followed by categorical block grants, and then by general revenues.

The County has elected to follow FASB statements and interpretations issued on or before November 30,1989, for all governmental and business-type activities and enterprise funds, unless those standardsconflict with or contradict guidance of the GASB pronouncements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financialstatements.

Amounts reported as program revenue include 1) charges to customers for goods, services, or privilegesprovided; 2) operating grants and contributions; and 3) capital grants and contributions, including specialassessments. Internally dedicated resources are reported as general revenues rather than programrevenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund’s principal ongoing operations. The principal operating revenues of theCounty’s enterprise funds are charges to customers for sales and services. Operating expenses forenterprise funds and the internal service fund include the cost of sales and services, administrativeexpenses, and depreciation on capital assets. All revenues and expenses not meeting this definition arereported on nonoperating revenues and expenses.

D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents consists of cash on hand, demand deposits, and short-term investments withoriginal maturities of three months or less from date of acquisition.

Equity in Pooled Cash and Investments represent assets pooled for investment purposes with eachindividual fund and/or account maintained on a daily transaction basis. Such investments consist ofdemand deposits, certificates of deposit, notes of certain instrumentalities, and monies placed with theState Board of Administration’s investment pool. Investment earnings are allocated to the participatingfunds on a pro-rata basis.

As defined by GASB Statement No. 31, money market investments are reported at amortized cost ratherthan fair value. The County has adopted an investment policy in accordance with specific requirementsof Florida Statute 218.415 (1) — (16). This policy authorizes investments in direct obligations of the US.Treasury, Federal Instrumentalities, time deposits and savings accounts in qualified public depositories,tax exempt obligations of the State of Florida, the Florida Counties Investment Trust, Securities andExchange qualified open-end money market mutual funds, and repurchase agreements. The Countymay also invest in the Local Government Surplus Trust Fund, an external investment pool administeredby the Florida State Board of Administration (SBA). Investments held in the SBA consist largely oftreasury instruments, federal agency obligations, certificates of deposit, repurchase agreements, bankers’acceptances, and commercial paper. The SBA pool is a “2—a-7 like” pool as defined in GASB Statement

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No. 31 and the reported investment balance is equal to the value of pooled shares. The Office of the Auditor General performs an operational audit of the activities and investments of the SBA. The County has implemented GASB 40, “Deposit and Investment Risk Disclosures an Amendment of GASB Statement No. 3”, which requires more comprehensive disclosure of various common risks related to deposits and investments. Investments not included in equity in pooled cash consist of certificates of deposit held by the Sheriff at local banks which are qualified public depositories. As such, they are considered to be fully insured for risk categorization purposes. Trade Receivables are shown net of an allowance for uncollectibles, for all amounts older than 120 days, except for the Solid Waste Fund which uses a 90-day policy. The County records unbilled service receivables for services that have been rendered but not billed at the end of the fiscal year. Real and Personal Property Valuations are determined each year as of January 1 by the Property Appraiser’s Office. Florida Statutes require all property be assessed at 100% of just value. For 2005, the Countywide millage rate was 8.756 mills. All property taxes are billed in arrears and become due and payable on November 1 and are delinquent on April 1, of the following year. The legal lien date is January 1 of each year. Discounts of 4, 3, 2, and 1 percent are allowed for early payment in November through February, respectively. Virtually all unpaid taxes are collected via the sale of tax certificates prior to year end; thus there is no receivable reported for property taxes in the financial statements. Due From/(To) Other Funds are activities between funds. Such amounts are representative of lending/borrowing arrangements outstanding at the end of the fiscal year and referred to as either “due to /from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non—current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances To/(From) Other Funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. Inventory amounts are valued at cost (first-in, first-out). Inventory balances in general, special revenue and enterprise funds are accounted for on the consumption method, i.e., expenditures and expenses are recognized when inventories are used. Reported inventories are equally offset by a fund balance reserve to indicate that they are not “available spendable resources” even though they are a component of net current assets. Restricted Assets are assets of both governmental and business-type activities that are restricted per resolutions or other agreements. Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Purchased or constructed assets are recorded at historical costs or estimated costs. Donated capital assets are recorded at estimated fair market value at the date of donation. The County capitalizes items costing $1,000 and having an estimated useful life in excess of one year. Buildings, public domain and system infrastructure assets which represent major expenditures for such items as roads, water and sewer lines, landfill improvements, and parks and drainage systems are



No. 31 and the reported investment balance is equal to the value of pooled shares. The Office of theAuditor General performs an operational audit of the activities and investments of the SBA.

The County has implemented GASB 40, ”Deposit and Investment Risk Disclosures an Amendment ofGASB Statement No. 3”, which requires more comprehensive disclosure of various common risks relatedto deposits and investments.

Investments not included in equity in pooled cash consist of certificates of deposit held by the Sheriff atlocal banks which are qualified public depositories. As such, they are considered to be fully insured forrisk categorization purposes.

Trade Receivables are shown net of an allowance for uncollectibles, for all amounts older than 120 days,except for the Solid Waste Fund which uses a 90-day policy. The County records unbilled servicereceivables for services that have been rendered but not billed at the end of the fiscal year.

Real and Personal Property Valuations are determined each year as of January 1 by the PropertyAppraiser’s Office. Florida Statutes require all property be assessed at 100% ofjust value. For 2005, theCountywide millage rate was 8.756 mills. All property taxes are billed in arrears and become due andpayable on November 1 and are delinquent on April 1, of the following year. The legal lien date isJanuary 1 of each year. Discounts of 4, 3, 2, and 1 percent are allowed for early payment in Novemberthrough February, respectively. Virtually all unpaid taxes are collected via the sale of tax certificates priorto year end; thus there is no receivable reported for property taxes in the financial statements.

Due From/(To) Other Funds are activities between funds. Such amounts are representative oflending/borrowing arrangements outstanding at the end of the fiscal year and referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., thenon—current portion of interfund loans). Any residual balances outstanding between the governmentalactivities and business-type activities are reported in the government-wide financial statements as“internal balances.”

Advances To/(From) Other Funds, as reported in the fund financial statements, are offset by a fundbalance reserve account in applicable governmental funds to indicate that they are not available forappropriation and are not expendable available financial resources.

Inventory amounts are valued at cost (first-in, first-out). Inventory balances in general, special revenueand enterprise funds are accounted for on the consumption method, i.e., expenditures and expenses arerecognized when inventories are used. Reported inventories are equally offset by a fund balance reserveto indicate that they are not “available spendable resources” even though they are a component of netcurrent assets.

Restricted Assets are assets of both governmental and business-type activities that are restricted perresolutions or other agreements.

Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,sidewalks, and similar items), are reported in the applicable governmental or business-type activitiescolumns in the government-wide financial statements. Purchased or constructed assets are recorded athistorical costs or estimated costs. Donated capital assets are recorded at estimated fair market value atthe date of donation.

The County capitalizes items costing $1,000 and having an estimated useful life in excess of one year.Buildings, public domain and system infrastructure assets which represent major expenditures for suchitems as roads, water and sewer lines, landfill improvements, and parks and drainage systems are

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capitalized at historical cost. Major outlays for capital assets and improvements are capitalized as projects are constructed. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Depreciation has been provided using the straight-line method. The estimated useful lives of the various classes of depreciable capital assets are as follows: Buildings 10 – 50 years Improvements 20 – 50 years Infrastructure 20 – 50 years Equipment 3 – 10 years Compensated Absences are accrued in accordance with GASB Statement No. 16. It is the policy of the County to permit employees to accumulate a limited amount of earned but unused leave benefits which will be paid to employees upon separation from service. Unpaid compensated absences are recorded as a liability when the benefits are earned in the government-wide and proprietary fund financial statements. For governmental funds, there is no legal requirement to accumulate expendable available financial resources to liquidate the obligation; these expenditures are recognized in the governmental funds when payments are made to employees. Deferred Revenues include amounts collected before revenue recognition criteria are met. Self Insurance Claims Payable represents liabilities for reported claims and incurred but not reported claims based on an actuarial review of claims pending and historical experience. Landfill Closure and Postclosure Care Payable represents the recognition of municipal solid waste landfill closure and postclosure care costs under the State of Florida’s Solid Waste Management Act of 1988 (the “1988 Act”), regulations of the Federal Environmental Protection Agency (EPA) and GASB Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs. Municipal Solid Waste Landfill (MSWLF) costs incurred for landfills accepting solid waste after final implementation of the 1988 Act and EPA regulations are recognized as an expense and a liability in each year that the MSWLF accepts solid waste based upon the landfill capacity used during that year. Long Term Obligations in the government-wide and the proprietary fund financial statements are reported as liabilities in the statement of net assets. Bond premiums, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts as well as bond issuance costs during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts and debt issuance costs are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures of the funds in which proceeds of debt issuances are recorded. Fund Equity in the governmental fund’s financial statements report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.



capitalized at historical cost. Major outlays for capital assets and improvements are capitalized asprojects are constructed.

The costs of normal maintenance and repairs that do not add to the value of the asset or materiallyextend assets lives are not capitalized.

Depreciation has been provided using the straight-line method. The estimated useful lives of the variousclasses of depreciable capital assets are as follows:

Buildings 10 — 50 yearsImprovements 20 — 50 yearsInfrastructure 20 — 50 yearsEquipment 3 — 10 years

Compensated Absences are accrued in accordance with GASB Statement No. 16. It is the policy of theCounty to permit employees to accumulate a limited amount of earned but unused leave benefits whichwill be paid to employees upon separation from service. Unpaid compensated absences are recorded asa liability when the benefits are earned in the government-wide and proprietary fund financial statements.For governmental funds, there is no legal requirement to accumulate expendable available financialresources to liquidate the obligation; these expenditures are recognized in the governmental funds whenpayments are made to employees.

Deferred Revenues include amounts collected before revenue recognition criteria are met.

Self Insurance Claims Payable represents liabilities for reported claims and incurred but not reportedclaims based on an actuarial review of claims pending and historical experience.

Landfill Closure and Postclosure Care Payable represents the recognition of municipal solid wastelandfill closure and postclosure care costs under the State of Florida’s Solid Waste Management Act of1988 (the “1988 Act”), regulations of the Federal Environmental Protection Agency (EPA) and GASBStatement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs.Municipal Solid Waste Landfill (MSWLF) costs incurred for landfills accepting solid waste after finalimplementation of the 1988 Act and EPA regulations are recognized as an expense and a liability in eachyear that the MSWLF accepts solid waste based upon the landfill capacity used during that year.

Long Term Obligations in the government-wide and the proprietary fund financial statements arereported as liabilities in the statement of net assets. Bond premiums, as well as issuance costs, aredeferred and amortized over the life of the bonds using the straight-line method.

In the fund financial statements, governmental fund types recognize bond premiums and discounts aswell as bond issuance costs during the current period. The face amount of debt issued is reported asother financial sources. Premiums received on debt issuances are reported as other financing sourceswhile discounts and debt issuance costs are reported as other financing uses. Issuance costs, whetheror not withheld from the actual debt proceeds received, are reported as expenditures of the funds inwhich proceeds of debt issuances are recorded.

Fund Equity in the governmental fund’s financial statements report reservations of fund balance foramounts that are not available for appropriation or are legally restricted by outside parties for use for aspecific purpose. Designations of fund balance represent tentative management plans that are subject tochange.

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Net Assets The government-wide and business type fund financial statements utilize a net asset presentation. Net assets are categorized as invested in capital assets (net of related debt), restricted and unrestricted. Invested in Capital Assets (net of related debt) is intended to reflect the portion of net assets which are associated with non-liquid, capital assets less outstanding capital asset related debt. Restricted Net Assets are liquid assets (generated from revenues and net bond proceeds) which are not accessible for general use because of third-party (statutory, bond covenant or granting agency) limitations. Unrestricted Net Assets represent unrestricted liquid assets. While County management may have categorized and segmented portions for various purposes, the Board of County Commissioners has the unrestricted authority to revisit or alter these managerial decisions.

NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles as required by Florida Statute 129 for all governmental funds. All annual appropriations lapse at fiscal year end. On or before May 1 of each year, the Sheriff, Clerk of the Circuit Court, Tax Collector, Property Appraiser, Supervisor of Elections and the Civil Service Board each submit to the Board of County Commissioners a tentative budget for the ensuing fiscal year. Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the County Budget Officer submits to the Board a proposed budget for the fiscal year commencing the following October 1st. The Budget includes proposed expenditures and the means of financing them. The Board holds public hearings and a final budget must be prepared and adopted no later than September 30. The County’s budget is legally enacted through passage of a resolution. The appropriated budget is prepared by fund, function and department. The Office of Management and Budget is authorized to transfer budgeted amounts within departments of a fund and between departments of a fund; however, the Board of County Commissioners must approve any revisions that alter the total expenditures of any fund. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. The Board of County Commissioners approved supplemental budget amendments during the year that increased the original budget.



Net Assets

The government-wide and business type fund financial statements utilize a net asset presentation. Netassets are categorized as invested in capital assets (net of related debt), restricted and unrestricted.

Invested in Capital Assets (net of related debt) is intended to reflect the portion of net assets which areassociated with non-liquid, capital assets less outstanding capital asset related debt.

Restricted Net Assets are liquid assets (generated from revenues and net bond proceeds) which are notaccessible for general use because of third-party (statutory, bond covenant or granting agency)limitations.

Unrestricted Net Assets represent unrestricted liquid assets. While County management may havecategorized and segmented portions for various purposes, the Board of County Commissioners has theunrestricted authority to revisit or alter these managerial decisions.

NOTE 2 — STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles asrequired by Florida Statute 129 for all governmental funds. All annual appropriations lapse at fiscal yearend.

On or before May 1 of each year, the Sheriff, Clerk of the Circuit Court, Tax Collector, Property Appraiser,Supervisor of Elections and the Civil Service Board each submit to the Board of County Commissioners atentative budget for the ensuing fiscal year.

Within fifteen days after certification of the ad valorem tax roll by the Property Appraiser, the CountyBudget Officer submits to the Board a proposed budget for the fiscal year commencing the followingOctober 1“. The Budget includes proposed expenditures and the means of financing them.

The Board holds public hearings and a final budget must be prepared and adopted no later thanSeptember 30. The County’s budget is legally enacted through passage of a resolution.

The appropriated budget is prepared by fund, function and department. The Office of Management andBudget is authorized to transfer budgeted amounts within departments of a fund and betweendepartments of a fund; however, the Board of County Commissioners must approve any revisions thatalter the total expenditures of any fund. The legal level of budgetary control (i.e., the level at whichexpenditures may not legally exceed appropriations) is the fund level. The Board of CountyCommissioners approved supplemental budget amendments during the year that increased the originalbudget

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NOTE 3 – DETAIL NOTES ON ALL FUNDS A. Assets Deposits and Investments As of September 30, 2005, the carrying value of the County’s deposits and investments with their respective credit ratings was as follows:

Weighted Fair Credit Average

Investment Type Value Rating Maturity (years) Demand and time deposits $31,148,635 N/A N/A Certificates of Deposit 22,150,000 N/A 155.39 days Local Government Surplus Funds Trust Fund 60,194,663 Unrated 90 days Federal Instrumentalities: US Agencies: FHLB 4,931,389 Aaa 131 days FNMA 9,911,764 Aaa 94 days FHLMC 19,345,959 Aaa 77.5 days FFCB 4,879,153 Aaa 227 days Money Market Accounts 39,020,102 N/A N/A

Total Deposits and Investments $191,581,665

Credit Risk: The County’s Investment Policy (Policy), limits credit risk by restricting authorized investments to the following: direct obligations of the United States or its agencies and instrumentalities, repurchase agreements, the Local Government Surplus Funds Trust Fund administered by Florida’s State Board of Administration (a 2a7-like pool), certificates of deposit, money market mutual funds investing in direct obligations of the United States or its agencies and instrumentalities regulated by the SEC, and the Florida Local Government Investment Trust, an investment pool administered by the Florida Association of Court Clerks and Comptrollers. The credit ratings indicated in the above table are Moody’s Investors Services (Moody’s) ratings. Concentration of Credit Risk: The Policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a defunct or insolvency has occurred. As of September 30, 2005, all of the County’s bank deposits were in qualified public depositories. The Policy requires the assets shall be diversified to control the risk of loss resulting from the over concentration of assets. The Policy establishes guidelines for limiting the percentage of the portfolio by permissible investment category as well as issuer limits within an investment category.



NOTE 3 — DETAIL NOTES ON ALL FUNDS

A. Assets

Deposits and Investments

As of September 30, 2005, the carrying value of the County’s deposits and investments with theirrespective credit ratings was as follows:

WeightedFair Credit Average

Investment Type Value Rating Maturity (years)Demand and time deposits $31,148,635 N/A N/ACertificates of Deposit 22,150,000 N/A 155.39 daysLocal Government Surplus Funds Trust Fund 60,194,663 Unrated 90 daysFederal Instrumentalities:

US Agencies:FHLB 4,931,389 Aaa 131 daysFNMA 9,911,764 Aaa 94 daysFHLMC 19,345,959 Aaa 77.5 daysFFCB 4,879,153 Aaa 227 days

Money Market Accounts 39,020,102 N/A N/A

Total Deposits and Investments $191,581,665

Credit Risk:

The County’s Investment Policy (Policy), limits credit risk by restricting authorized investments to thefollowing: direct obligations of the United States or its agencies and instrumentalities, repurchaseagreements, the Local Government Surplus Funds Trust Fund administered by Florida’s State Board ofAdministration (a 2a7-Iike pool), certificates of deposit, money market mutual funds investing in directobligations of the United States or its agencies and instrumentalities regulated by the SEC, and theFlorida Local Government Investment Trust, an investment pool administered by the Florida Associationof Court Clerks and Comptrollers. The credit ratings indicated in the above table are Moody’s InvestorsServices (Moody’s) ratings.

Concentration of Credit Risk:

The Policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. Thislaw requires local governments to deposit funds only in financial institutions designated as qualified publicdepositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits TrustFund, a multiple financial institution pool with the ability to assess its member financial institutions forcollateral shortfalls if a defunct or insolvency has occurred. As of September 30, 2005, all of the County’sbank deposits were in qualified public depositories.

The Policy requires the assets shall be diversified to control the risk of loss resulting from the overconcentration of assets. The Policy establishes guidelines for limiting the percentage of the portfolio bypermissible investment category as well as issuer limits within an investment category.

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The Policy requires execution of a third-party custodial safekeeping agreement for all purchased securities, and requires that securities be held in the County’s name. As of September 30, 2005, all of the County’s investments were held in a bank’s trust department in the County’s name. Interest Rate Risk: The Policy limits the investment of current operating funds to no longer than one (1) year. Investments of current operating funds will be matched to cash flow needs. Investment of bond reserves, construction funds and other non-operating funds shall have a term appropriate to the need for funds, and in accordance with debt covenants, but shall not exceed five (5) years. Receivables at year end for the government’s individual major funds and nonmajor, internal service and fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Accrued Gross for Accounts Notes Interest Receivables Uncollectible Net Governmental activities: General $5,512,653 $0 $260,509 $5,773,162 ($3,698,793) $2,074,369 Disaster recovery 15,381 0 0 15,381 0 15,381 Transportation and drainage 4,913 0 0 4,913 0 4,913 Local option sales tax 20,042 0 0 20,042 0 20,042 Other non major funds 1,374,477 82,814 0 1,457,291 (57,732) 1,399,559 Internal Service Fund 1,448,844 0 38,671 1,487,515 (42,425) 1,445,090

Total governmental activities $8,376,310 $82,814 $299,180 $8,758,304 ($3,798,950) $4,959,354

Business-type activities: Solid Waste $946,641 $0 $0 $946,641 $0 $946,641 Civic Center 57,699 0 0 57,699 (26,521) 31,178 Non major and other funds 8,921,453 0 0 8,921,453 (5,735,490) 3,185,963

Total business-type activities $9,925,793 $0 $0 $9,925,793 ($5,762,011) $4,163,782

Component units: Law Library $323 $0 $0 $323 $0 $323 Santa Rosa Island Authority 340,782 0 0 340,782 0 340,782 Housing Finance Authority 20,500 0 56,038 76,538 0 76,538

Total component units $361,605 $0 $56,038 $417,643 $0 $417,643

There were no unbilled receivables at September 30, 2005. The General Fund receivable contains $3,698,690 contested property taxes billed on Pensacola Beach. Due to pending litigation, this receivable is fully offset with an allowance for uncollectible accounts.



The Policy requires execution of a third-party custodial safekeeping agreement for all purchasedsecurities, and requires that securities be held in the County’s name. As of September 30, 2005, all ofthe County’s investments were held in a bank’s trust department in the County’s name.

Interest Rate Risk:

The Policy limits the investment of current operating funds to no longer than one (1) year. Investments ofcurrent operating funds will be matched to cash flow needs. Investment of bond reserves, constructionfunds and other non-operating funds shall have a term appropriate to the need for funds, and inaccordance with debt covenants, but shall not exceed five (5) years.

Receivables at year end for the government’s individual major funds and nonmajor, internal service andfiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts, are asfollows:

AllowanceAccrued Gross for

Accounts Notes Interest Receivables Uncollectible Net

Governmental activities:General $5,512,653 $0 $260,509 $5,773,162 ($3,698,793Disaster recovery 15,381 0 0 15,381 15,381Transportation and drainage 4,913 0 0 4,913 4,913Local option sales tax 20,042 0 0 20,042 0 20,042Other non major funds 1,374,477 82,814 0 1,457,291 (57,732) 1,399,559Internal Service Fund 1,448,844 0 38,671 1,487,515 (42,425) 1,445,090

Total governmental activities $8,376,310 $82,814 $299,180 $8,758,304 ($3,798,950) $4,959,354

$2,074,369

OO

VBusiness-type activities:Solid Waste $946,641 $0 $0 $946,641 $0 $946,641Civic Center 57,699 0 0 57,699 (26,521) 31,178Non major and other funds 8,921,453 0 0 8,921,453 (5,735,490) 3,185,963Total business-type activities $9,925,793 $0 $0 $9,925,793 ($5,762,011) $4,163,782

Component units:Law Library $323 $0 $0 $323 $0 $323Santa Rosa Island Authority 340,782 0 0 340,782 0 340,782Housing Finance Authority 20,500 0 56,038 76,538 0 76,538

Total component units $361,605 $0 $56,038 $417,643 $0 $417,643

There were no unbilled receivables at September 30, 2005. The General Fund receivable contains$3,698,690 contested property taxes billed on Pensacola Beach. Due to pending litigation, thisreceivable is fully offset with an allowance for uncollectible accounts.

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Capital Assets activity for the year ended September 30, 2005 was as follows: Balance at Balance at 10/01/04 Increases Decreases 09/30/05 Primary Government: Governmental activities: Capital assets not depreciated: Land $21,812,302 $997,669 $0 $22,809,971 Construction in progress 20,292,163 21,989,036 (13,828,437) 28,452,762 Total capital assets not depreciated 42,104,465 22,986,705 (13,828,437) 51,262,733 Capital assets depreciated: Infrastructure 457,005,895 14,555,373 (501,483) 471,059,785 Buildings and improvements 129,181,148 11,095,153 (1,313,252) 138,963,049 Equipment 91,005,269 8,805,531 (9,399,469) 90,411,331 Total capital assets depreciated 677,192,312 34,456,057 (11,214,204) 700,434,165 Less accumulated depreciation: Infrastructure 188,460,560 16,736,344 (93,332) 205,103,572 Building and improvements 39,555,182 4,210,756 (201,726) 43,564,212 Equipment 65,185,505 9,443,192 (9,183,327) 65,445,370 Total accumulated depreciation 293,201,247 30,390,292 (9,478,385) 314,113,154 Total capital assets depreciated, net 383,991,065 4,065,765 (1,735,819) 386,321,011 Governmental-type activities capital assets, net $426,095,530 $27,052,470 ($15,564,256) $437,583,744

Business-type activities: Land $7,132,625 $60,600 ($336,080) $6,857,145 Capital assets depreciated: Buildings 31,499,045 555,148 (361,939) 31,692,254 Infrastructure 29,197,079 916,357 0 30,113,436 Equipment 13,276,779 1,011,168 (374,808) 13,913,139 Total capital assets depreciated 73,972,903 2,482,673 (736,747) 75,718,829 Less accumulated depreciation: Buildings 15,065,003 1,195,451 (200,739) 16,059,715 Infrastructure 10,274,425 1,482,384 0 11,756,809 Equipment 7,628,903 1,825,711 (357,701) 9,096,913 Total accumulated depreciation 32,968,331 4,503,546 (558,440) 36,913,437 Total capital assets depreciated, net 41,004,572 (2,020,873) (178,307) 38,805,392 Business-type activities capital assets, net $48,137,197 ($1,960,273) ($514,387) $45,662,537



Capital Assets activity for the year ended September 30, 2005 was as follows:

Primam Government:Governmental activities:Capital assets not depreciated:LandConstruction in progressTotal capital assets not depreciated

Capital assets depreciated:InfrastructureBuildings and improvementsEquipmentTotal capital assets depreciated

Less accumulated depreciation:InfrastructureBuilding and improvementsEquipment

Total accumulated depreciationTotal capital assets depreciated, net

Governmental-type activities

capital assets, net

Business-type activities:LandCapital assets depreciated:

BuildingsInfrastructureEquipment

Total capital assets depreciated

Less accumulated depreciation:BuildingsInfrastructureEquipment

Total accumulated depreciationTotal capital assets depreciated, net

Business-type activities

capital assets, net

Balance at10/01/04 Increases Decreases

Balance at09/30/05

$21,812,30220,292,163

$997,66921,989,036

$0(13,828,437)

$22,809,97128,452,762

42,104,465 22,986,705 (13,828,437) 51,262,733

457,005,895129,181,14891,005,269

14,555,37311,095,1538,805,531

(501,483(1,313,252(9,399,469

471,059,785138,963,04990,411,331

677,192,312

188,460,56039,555,18265,185,505

34,456,057

16,736,3444,210,7569,443,192

VV

VV

(11,214,204

(93,332)(201,726)

(9,183,327)

700,434,165

205,103,57243,564,21265,445,370

293,201,247 30,390,292 (9,478,385) 314,113,154383,991,065 4,065,765 (1,735,819) 386,321,011

$426,095,530

$7,132,625

$27,052,470

$60,600

($15,564,256)

($338,080)

$437,583,744

$6,857,145

31,499,04529,197,07913,276,779

555,148916,357

1,011,168

(381,939)0

31,692,25430,113,43613,913,139

73,972,903 2,482,673(374,808)(738,747) 75,718,829

15,065,00310,274,4257,628,903

1,195,4511,482,3841,825,711

(200,739)0

(357,701

16,059,71511,756,8099,096,913

32,968,331 4,503,546 36,913,43741,004,572 (2,020,873)

)(558,440)(178,307) 38,805,392

$48,137,197

48

($1,980,273) ($514,387) $45,662,537



49

Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: Business-type activities: General government $2,180,305 Solid waste $1,974,044 Public safety 11,168,114 Inspections 71,124 Physical environment 60,284 Ambulance 737,398 Transportation, Civic center 1,236,816 including depreciation of general Economic dev. and ind. parks 484,164 infrastructure assets 15,086,931 Total depreciation expense $4,503,546

Economic environment 238,202 Human services 383,729 Culture and recreation 1,272,727 Total depreciation expense $30,390,292

Depreciation on capital assets held by the government’s internal service funds are charged to the general government function. Discretely Presented Component Units reported the following capital asset balances at September 30, 2005: SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITY Buildings $1,120,953 Land $455,314 Improvements other than buildings 7,418,191 Improvements other than buildings 14,539 Equipment 1,147,804 Equipment 46,885 Construction in progress 4,116,501 Total at historical cost 516,738 Total at historical cost 13,803,449 Less accumulated depreciation: Less accumulated depreciation (3,593,730) Improvements other than buildings (14,539) Equipment (32,481)Santa Rosa Island Authority Total accumulated depreciation (47,020) capital assets, net $10,209,719

Housing Finance Authority capital assets, net $469,718



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

Governmental activities: Business-type activities:General government $2,180,305 Solid waste $1,974,044Public safety 11,168,114 Inspections 71,124Physical environment 60,284 Ambulance 737,398Transportation, Civic center 1,236,816

including depreciation of general Economic dev. and ind. parks 484,164

infrastructure assets 15,086,931 Total depreciation expense $4,503,546

Economic environment 238,202Human services 383,729Culture and recreation 1,272,727

Total depreciation expense $30,390,292

Depreciation on capital assets held by the government’s internal service funds are charged to the generalgovernment function.

Discretely Presented Component Units reported the following capital asset balances at September 30,2005:

SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITYBuildings $1,120,953 Land $455,314Improvements other than buildings 7,418,191 Improvements other than buildings 14,539Equipment 1,147,804 Equipment 46,885

Construction in progress 4,116,501 Total at historical cost 516,738Total at historical cost 13,803,449

Less accumulated depreciation:Less accumulated depreciation (3,593,730) Improvements other than buildings (14,539)

Equipment £32,481)Santa Rosa Island Authority Total accumulated depreciation (47,020)

capital assets, net $10,209,719

Housing Finance Authority

capital assets, net $469,718

49



50

Interfund Receivables / Payables: During the course of its operations, the County has numerous transactions between funds to finance operations, provide services, construct assets, and service debt to the extent that certain interfund receivables and payables exist as of September 30, 2005. Balances of interfund receivables, payables, and advances are as follows: Interfund Interfund Advances Advances Receivables Payables To From General fund $2,819,277 $1,783,521 $138,295 $0 Disaster recovery 0 154,194 0 30,000,000 Capital improvements 0 0 0 0 Local option sales tax 0 50,635 30,000,000 0 Nonmajor governmental 160,164 2,921,592 0 0 2,979,441 4,909,942 30,138,295 30,000,000 Solid waste 0 543 0 0 Civic center 0 0 0 138,295 Economic development and industrial fund 0 0 0 1,933,535 Internal service 1,721,538 13 1,933,535 0 Fiduciary - agency 209,519 0 0 0

Total major and nonmajor $4,910,498 $4,910,498 $32,071,830 $32,071,830

Interfund Transfers: Transfer Transfer In Out Major Governmental Funds: General fund $1,297,504 $16,199,085 Transportation and drainage 6,342,973 99,496 Debt service 19,097,173 0 Local option sales tax 22,540,284 8,847,069 Non-major Governmental Funds:

Mass transit 1,356,870 0 Grant projects 22,499 260,000 Tourist promotion 0 1,434,356 Public safety programs 224,250 1,528,853 Bob Sikes toll facilities 0 2,761,794 Community redevelopment agency 1,636,065 0 Capital improvement program 1,247,399 22,783,031 Road construction 234 84,202 General trust fund 16,489 0 Major Business-type Activities: Solid waste 0 400,140 Civic center 775,936 0 Non-major Business-type Activities: Ambulance 0 159,650

Total $54,557,676 $54,557,676

Transfers to or from other funds are based on budgetary requirements. Transfers are also used to move receipts restricted for debt service from the funds collecting the receipts to the debt service fund as required for bond coverage.



Interfund Receivables / Payables:

During the course of its operations, the County has numerous transactions between funds to financeoperations, provide services, construct assets, and service debt to the extent that certain interfundreceivables and payables exist as of September 30, 2005. Balances of interfund receivables, payables,and advances are as follows:

General fundDisaster recoveryCapital improvementsLocal option sales taxNonmajor governmental

Solid wasteCivic centerEconomic development and industrial fundInternal serviceFiduciary - agency

Total major and nonmajor

Interfund Transfers:

Major Governmental Funds:General fundTransportation and drainageDebt serviceLocal option sales tax

Non-major Governmental Funds:

Mass transitGrant projectsTourist promotionPublic safety programsBob Sikes toll facilitiesCommunity redevelopment agencyCapital improvement programRoad constructionGeneral trust fund

Major Business-type Activities:Solid wasteCivic center

Non-major Business-type Activities:Ambulance

Total

InterfundReceivables

InterfundPayables

AdvancesTo

AdvancesFrom

$2,819,277000

160,164

$1,783,521154,194

050,635

2,921,592

$138,29500

30,000,0000

$030,000,000

000

2,979,441

0O0

1,721,538209,519

4,909,942

5430O

130

30,138,295

000

1,933,5350

30,000,000

0138,295

1,933,53500

$4,910,498

TransferIn

$4,910,498

TransferOut

$1,297,5046,342,973

19,097,17322,540,284

1 ,356,87022,499

0224,250

01 ,636,0651 ,247,399

23416,489

775,936

0

$16,199,08599,496

08,847,069

0260,000

1,434,3561,528,8532,761,794

022,783,031

84,2020

400,140

159,650

$54,557,676 $54,557,676

$32,071,830 $32,071,830

Transfers to or from other funds are based on budgetary requirements. Transfers are also used to movereceipts restricted for debt service from the funds collecting the receipts to the debt service fund asrequired for bond coverage.

50



51

Restricted Assets for business activities contain the following balances: Total Internal Solid Enterprise Service Waste Inspections Funds Fund Deposits $167,911 $272,146 $440,057 $85,693 Landfill closure 6,075,347 0 6,075,347 0

$6,243,258 $272,146 $6,515,404 $85,693

B. Liabilities Payable from Restricted Assets in the business-type activities contain the following balances: Total Solid Enterprise Internal Waste Inspections Funds Service Deposits $167,911 $272,146 $440,057 $85,693 Landfill closure and postclosure 95,024 0 95,024 0

$262,935 $272,146 $535,081 $85,693



Restricted Assets for business activities contain the following balances:

Total InternalSolid Enterprise Service

Waste Inspections Funds FundDeposits $167,911 $272,146 $440,057 $85,693Landfill closure 6,075,347 0 6,075,347 0

$6,243,258 $272,146 $6,515,404 $85,693

B. Liabilities

Payable from Restricted Assets in the business-type activities contain the following balances:

TotalSolid Enterprise Internal

Waste Inspections Funds ServiceDeposits $167,911 $272,146 $440,057 $85,693Landfill closure and postclosure 95,024 0 95,024 0

$262,935 $272,146 $535,081 $85,693

51



52

Long-Term Debt Changes in long-term bonds, notes payable, loans, capital leases, and compensated absences during 2005 are as follows:

Balance One Year Remaining Long-Term Debt 10/01/04 Additions (Retirements) of 09/30/05 09/30/05

Governmental-type activities: Sales Tax Revenue Bonds $89,730,000 $0 ($1,680,000) ($1,715,000) $86,335,000 Road Improvement Revenue Bonds 5,160,000 0 (935,000) (980,000) 3,245,000 Capital Improvement Bonds 21,890,000 0 (425,000) (440,000) 21,025,000 Tourist Development Bonds 15,860,000 0 (860,000) (875,000) 14,125,000 Capital Improvement Notes 37,383,000 0 (7,891,000) (8,256,000) 21,236,000 State of Florida's Toll Facility Note 385,834 0 (83,333) (83,333) 219,168 Capital Leases 8,286,825 0 (1,655,157) (1,485,706) 5,145,962 General Compensated Absences Board of County Commissioners 4,622,971 3,763,244 (2,737,992) (3,345,206) 2,303,017 Tax Collector 672,474 694,244 (386,057) 0 980,661 Property Appraiser 429,428 253,903 (207,988) 0 475,343 Internal Service Compensated Absences: Board of County Commissioners 42,264 31,218 (26,697) 0 46,785 Clerk of the Circuit Court 1,333,849 924,136 (673,578) (223,805) 1,360,602 Sheriff 15,065,130 1,916,166 (1,423,298) (1,497,733) 14,060,265

Total $200,861,775 $7,582,911 ($18,985,100) ($18,901,783) $170,557,803

Business-type activities: Notes Payable: Solid Waste Note $789,575 $0 ($394,788) ($394,787) $0

Compensated Absences: Solid Waste Compensated Absences $407,209 $242,241 ($216,297) $0 $433,153 Inspections Compensated Absences 443,602 161,148 (174,359) 0 430,391 Ambulance Compensated Absences 415,298 414,827 (279,608) 0 550,517

Total $1,266,109 $818,216 ($670,264) $0 $1,414,061

The General Fund generally liquidates claims and judgments, and compensated absences for governmental activities.



Long-Term Debt Changes in long-term bonds, notes payable, loans, capital leases, and compensatedabsences during 2005 are as follows:

Long-Term Debt

Governmental-type activities:Sales Tax Revenue BondsRoad Improvement Revenue BondsCapital Improvement BondsTourist Development BondsCapital Improvement NotesState of Florida's Toll Facility NoteCapital LeasesGeneral Compensated Absences

Board of County CommissionersTaX CollectorProperty Appraiser

Internal Service Compensated Absences:Board of County CommissionersClerk of the Circuit CourtSheriff

Total

Business-type activities:Notes Payable:

Solid Waste Note

Compensated Absences:Solid Waste Compensated AbsencesInspections Compensated AbsencesAmbulance Compensated Absences

Total

The General Fund generally liquidates claimsgovernmental activities.

Balance

10/01/04

$89,730,0005,160,000

21,890,00015,860,00037,383,000

385,8348,286,825

4,622,971672,474429,428

42,2641,333,849

15,065,130

Additions

$0

OO

OO

OO

3,763,244694,244253,903

31,218924,136

1,916,166

(Retirements)

($1,680,000)(935,000)(425,000)(860,000)

(7,891,000)(83,333)

(1,655,157)

(2,737,992)(386,057)(207,988)

(26,697)(673,578)

(1,423,298)

One Year

of 09/30/05

($1,715,000)(980,000)(440,000)(875,000)

(8,256,000)(83,333)

(1,485,706)

(3,345,206)00

0(223,805)

(1,497,733)

Remaining

09/30/05

$86,335,0003,245,000

21,025,00014,125,00021,236,000

219,1685,145,962

2,303,017980,661475,343

46,7851,360,602

14,060,265$200,861,775

$789,575

$407,209443,602415,298

$7,582,911

$0

$242,241161,148414,827

($18,985,100)

($394,788)

($216,297)(174,359)(279,608)

($18,901,783)

($394,787)

$0

$170,557,803

$0

$433,153430,391550,517

$1,266,109 $818,216 ($670,264) $0 $1,414,061

and judgments, and compensated absences for

52



53

BCC Long-term Debt for governmental activities consists of the following: Interest Annual Final Amount

Governmental Activities Rates % Principal Maturity Outstanding

Bonds: Road Improvement Bonds Series 1993B 4.750 - 5.000 980,000 to 1,135,000 01/01/09 $4,225,000 Current ($980,000) Long-Term Road Improvement Bonds 3,245,000 Sales Tax Revenue Bonds Serial Bonds - Series 2002 2.000 - 5.250 1,715,000 to 3,290,000 10/01/22 39,675,000 Term Bond – Series 2002 4.75 3,450,000 to 5,485,000 10/01/33 48,375,000 Subtotal 88,050,000 Current (1,715,000) Long-term Sales Tax Revenue Bonds 86,335,000 Capital Improvement Bonds Serial Bonds - Series 2002 2.75 - 4.50 440,000 to 675,000 10/01/17 4,045,000 Term Bonds - Series 2002 4.75 - 5.25 550,000 to 1,375,000 10/01/32 17,420,000 Subtotal 21,465,000 Current (440,000) Long-term Capital Improvement Bonds 21,025,000 Tourist Development Bonds Series 2002 2.00 - 5.00 875,000 to 1,355,000 10/01/19 15,000,000 Current (875,000) Long-term Tourist Development Bonds 14,125,000 Total Outstanding Long-term Bonds 128,740,000 Notes: Capital Improvement Notes City of Gulf Breeze - Series 1997 Variable 380,000 to 1,085,000 10/01/17 8,785,000 City of Gulf Breeze - Series 1998 Variable 2,641,000 to 2,856,000 02/01/07 5,602,000 City of Gulf Breeze - Series 1999C 4.5462 4,920,000 to 7,385,000 05/01/07 12,305,000 City of Gulf Breeze - Series 2003 Variable 120,000 to 240,000 10/01/17 2,800,000 Subtotal 29,492,000 Current (8,256,000) Long-term Capital Improvement Notes 21,236,000 Other Notes State of Florida's Toll Facilities Note Interest free 52,500 to 83,334 06/16/09 302,501 Current (83,333) Long-term Notes 219,168 Total Outstanding Long-term Notes 29,794,501 *Principal annual payments are not due until 12/01/04--only three annual principal payments.

(Continued)


SEPTEMBER 30, 2005NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED)

BCC Long-term Debt for governmental activities consists of the following:

Governmental ActivitiesInterest AnnualRates % Principal

Bonds:Road Improvement BondsSeries 19938 4.750 - 5.000CurrentLong-Term Road Improvement Bonds

Sales Tax Revenue BondsSerial Bonds - Series 2002 2.000 - 5.250Term Bond — Series 2002 4.75

SubtotalCurrentLong-term Sales Tax Revenue Bonds

Capital Improvement BondsSerial Bonds - Series 2002 2.75 - 4.50Term Bonds - Series 2002 4.75 - 5.25

SubtotalCurrentLong-term Capital Improvement Bonds

Tourist Development BondsSeries 2002 2.00 - 5.00CurrentLong-term Tourist Development Bonds

Total Outstanding Long-term Bonds

Notes:Capital Improvement NotesCity of Gulf Breeze - Series 1997 VariableCity of Gulf Breeze - Series 1998 VariableCity of Gulf Breeze - Series 1999C 4.5462City of Gulf Breeze - Series 2003 Variable

SubtotalCurrentLong-term Capital Improvement Notes

Other NotesState of Florida's ToII Facilities Note Interest freeCurrentLong-term Notes

Total Outstanding Long-term Notes

*Principal annual payments are not due until 12/01/04--on|y three annual principal payments.

980,000 to

1,715,000 to3,450,000 to

440,000 to550,000 to

875,000 to

380,000 to2,641 ,000 to4,920,000 to

120,000 to

52,500 to

53

1,135,000

3,290,0005,485,000

675,0001,375,000

1,355,000

1 ,085,0002,856,0007,385,000

240,000

83,334

FinalMaturity

01/01/09

10/01/2210/01/33

10/01/1710/01/32

10/01/19

10/01/1702/01/0705/01/0710/01/17

06/16/09

AmountOutstanding

$4,225,000($980,000)3,245,000

39,675,00048,375,00088,050,000(1,715,000)86,335,000

4,045,00017,420,00021,465,000

(440,000)21,025,000

15,000,000(875,000)

14,125,000

128,740,000

8,785,0005,602,000

12,305,0002,800,000

29,492,000(8,256,000)21,236,000

302,501(83,333)219,168

29,794,501

(Continued)



54

Capital Leases SunTrust - Central Chiller Lease 3.55 260,713 to 300,304 04/01/11 1,633,090 SunTrust - Heavy Equipment Lease 2.605 834,341 to 878,813 08/14/08 2,569,442 SunTrust - Leonard Street Chiller 3.25 343,060 to 444,652 05/28/11 2,429,136 Subtotal 6,631,668 Current (1,485,706) Long-term Leases 5,145,962 Total Outstanding Capital Leases 6,631,668 Compensated Absences: Board of County Commissioners N / A -- -- N / A 5,648,223 BOCC Self Insurance Fund N / A -- -- N / A 46,785 Clerk of the Circuit Court N / A -- -- N / A 1,584,407 Sheriff N / A -- -- N / A 15,557,998 Tax Collector N / A -- -- N / A 980,661 Property Appraiser N / A -- -- N / A 475,343 Subtotal 24,293,417 Current (5,066,744) Long-term compensated absences 19,226,673 Total Outstanding Compensated Absences 24,293,417 Total Long-Term Debt $189,459,586

Business activity long-term debt consists of the following: Amount

Interest Annual Final Outstanding Business Activities Rates % Principal Maturity 9/30/2005

Solid Waste Fund Other Notes Sun Trust Line of Credit Variable $394,787 12/31/05 $394,787

Compensated Absences-Business Activities: Solid Waste Fund N / A N / A $433,153 Inspections Fund N / A N / A 430,391 Ambulance Fund N / A N / A 550,517 Subtotal 1,414,061 Current 0 Long-term Compensated Absences-Business Activities 1,414,061 Total Outstanding Business Activities Compensated Absences $1,414,061



Capital LeasesSunTrust - Central Chiller Lease 3.55 260,713 to 300,304 04/01/11SunTrust - Heavy Equipment Lease 2.605 834,341 to 878,813 08/14/08SunTrust - Leonard Street Chiller 3.25 343,060 to 444,652 05/28/11

SubtotalCurrentLong-term Leases

Total Outstanding Capital Leases

Compensated Absences:Board of County Commissioners N / A -- -- N /ABOCC Self Insurance Fund N / A -- -- N /AClerk of the Circuit Court N /A -- -- N /AShenfiTax CollectorProperty AppraiserSubtotalCurrent

N/A -- -- N/AN/A -- -- N/AN/A -- -- N/A

Long-term compensated absences

Total Outstanding Compensated Absences

Total Long-Term Debt

Business activity long-term debt consists of the following:

Interest Annual Final

Business Activities Rates “/0 Principal Maturity

1,633,0902,569,4422,429,1366,631,668

(1,485,706)5,145,962

6,631,668

5,648,22346,785

1,584,40715,557,998

980,661475,343

24,293,417(5,066,744)19,226,673

24,293,417

$189,459,586

AmountOutstanding

9/30/2005Solid Waste FundOther Notes

Sun Trust Line of Credit Variable $394,787 12/31/05

Compensated Absences-Business Activities:Solid Waste FundInspections FundAmbulance Fund

SubtotalCurrent

N/A N/AN/A N/AN/A N/A

Long-term Compensated Absences-Business Activities

Total Outstanding Business Activities Compensated Absences

54

$394,787

$433,153430,391550,517

1,414,0610

1,414,061

$1,414,061



55

Annual debt service requirements to maturity to retire long-term bonds, notes, and loans are as follows: Governmental Long-Term Debt

Fiscal Total Year Principal

Ending Revenue Bonds Notes and Loans and September 30, Principal Interest Principal Interest Interest

2006 $4,010,000 $5,780,043 $8,339,333 $914,932 $19,044,308 2007 4,125,000 5,660,731 10,949,333 570,229 21,305,293 2008 4,260,000 5,526,741 748,335 295,070 10,830,146 2009 4,415,000 5,365,310 752,500 273,699 10,806,509 2010 3,390,000 5,237,575 755,000 251,007 9,633,582

2011-2015 18,780,000 24,328,056 4,660,000 857,467 48,625,523 2016-2020 22,135,000 19,530,025 3,590,000 121,793 45,376,818 2021-2025 21,730,000 14,245,100 0 0 35,975,100 2026-2030 27,485,000 8,488,638 0 0 35,973,638 2031-2033 18,410,000 1,719,912 0 0 20,129,912

Total governmental debt $128,740,000 $95,882,131 $29,794,501 $3,284,197 $257,700,829

Business-Type Activities Long-Term Debt

Fiscal Total Year Principal

Ending Notes and September 30, Principal Interest Interest

Current $394,787 $2,530 $397,317

Long-Term Debt – Bonds Road Improvement Revenue Bonds Series 1993B in aggregate principal amount of $12,630,000 was issued under and pursuant to Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, ordinances and resolution adopted by the Commission of the County. The proceeds of the bonds were used for various road improvement projects throughout the County. The Series 1993B Bonds and the interest thereon are payable solely from and collateralized by the irrevocable lien upon and pledge of (i) the uncommitted Surplus Gas Tax Revenues, and (ii) until otherwise applied as provided in the Resolution, the moneys held in the funds and accounts thereunder (except the Rebate Fund) and in the income and investment thereof (collectively called the “Pledged Revenues”). Sales Tax Revenue Refunding Bonds Series 2002 in aggregate principal amount of $89,730,000, were issued under and pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, and ordinances and resolutions adopted by the Commission of the County. The Bonds are limited special obligations of the County collateralized by a lien on and pledge of, among other things, the proceeds of the local government half-cent sales tax distributed to the County from the Local Government Half-Cent Sales Tax Clearing Trust Fund. The proceeds of the bonds were used to finance the costs of a current refunding of all of the County’s Sales Tax Revenue Refunding Bonds Series 1993, originally issued in the amount of $50,355,000, with a balance of $48,830,000 at the date of refunding, and to provide approximately $39,000,000 to finance the cost of certain capital improvement projects of the County



Annual debt service requirements to maturity to retire long-term bonds, notes, and loans are asfollows:

Governmental Long-Term DebtFiscalYear

Ending Revenue Bonds Notes and Loans

September 30, Principal

2006 $4,010,0002007 4,125,0002008 4,260,0002009 4,415,0002010 3,390,000

2011-2015 18,780,0002016-2020 22,135,0002021 -2025 21,730,0002026-2030 27,485,0002031-2033 18,410,000

Interest

$5,780,0435,660,7315,526,7415,365,3105,237,575

24,328,05619,530,02514,245,1008,488,6381,719,912

Principal

$8,339,33310,949,333

748,335752,500755,000

4,660,0003,590,000

000

Interest

$914,932570,229295,070273,699251,007857,467121 ,793

000

TotalPrincipal

and

Interest

$19,044,30821,305,29310,830,14610,806,5099,633,582

48,625,52345,376,81835,975,10035,973,63820,129,912

Total governmental debt $128,740,000 $95,882,131 $29,794,501 $3,284,197 $257,700,829

Business-Type Activities Long-Term DebtFiscal TotalYear Principal

Ending Notes andSeptember 30, Principal Interest Interest

Current $394,787 $2,530 $397,317

Long-Term Debt — Bonds

Road Improvement Revenue Bonds Series 1993B in aggregate principal amount of $12,630,000 wasissued under and pursuant to Chapter 125, Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, ordinances and resolution adopted by the Commission of the County. Theproceeds of the bonds were used for various road improvement projects throughout the County. TheSeries 1993B Bonds and the interest thereon are payable solely from and collateralized by theirrevocable lien upon and pledge of (i) the uncommitted Surplus Gas Tax Revenues, and (ii) untilotherwise applied as provided in the Resolution, the moneys held in the funds and accounts thereunder(except the Rebate Fund) and in the income and investment thereof (collectively called the “PledgedRevenues”).

Sales Tax Revenue Refunding Bonds Series 2002 in aggregate principal amount of $89,730,000, wereissued under and pursuant to the Constitution and laws of the State of Florida, particularly Chapter 125,Florida Statutes, as amended, Home Rule Ordinance No. 74-8 of the County, as amended, andordinances and resolutions adopted by the Commission of the County. The Bonds are limited specialobligations of the County collateralized by a lien on and pledge of, among other things, the proceeds ofthe local government half-cent sales tax distributed to the County from the Local Government Half-CentSales Tax Clearing Trust Fund. The proceeds of the bonds were used to finance the costs of a currentrefunding of all of the County’s Sales Tax Revenue Refunding Bonds Series 1993, originally issued in theamount of $50,355,000, with a balance of $48,830,000 at the date of refunding, and to provideapproximately $39,000,000 to finance the cost of certain capital improvement projects of the County

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56

including (1) renovating and expanding the Sheriff’s administrative building; (2) renovating the jail infirmary; (3) expanding the jail annex; (4) expanding the road prison; (5) acquiring and constructing a parking garage; (6) constructing, renovating and expanding certain facilities contained within the administrative master plan; (7) constructing a library facility in Perdido Key; (8) renovating the juvenile justice addition; (9) constructing a new one-stop permitting building; (10) finishing out the third, fourth and fifth floors of the M.C. Blanchard Judicial Building; and (11) making certain stormwater improvements. The Project also includes construction and/or equipping of other capital improvements to be determined by the County. Capital Improvement Revenue Bonds Series 2002 in aggregate principal amount of $22,305,000 were issued pursuant to the authority of the Constitution, the laws of the State of Florida, County ordinances, the Santa Rosa Island Authority Special Act and various resolutions, including the interlocal agreement entered into by the Authority and the County. The proceeds will be used to finance the construction of certain capital improvements on Santa Rosa Island including road improvements to Via DeLuna Drive and Fort Pickens Road, constructing a water reclamation and reuse system, making improvements to the stormwater management system, burying existing above-ground utilities, and making certain landscaping improvements. The 2002 Bonds are special limited obligations of the County, payable solely from and secured by pledge of residential and commercial lease revenues collected by Santa Rosa Island Authority from island leaseholders (per interlocal agreement) and net toll revenues collected for passage across Bob Sikes Bridge to Santa Rosa Island. Tourist Development Revenue Refunding Bonds Series 2002 in aggregate principal amount of $16,885,000 were issued pursuant to the authority of the Constitution, and the laws of the State of Florida, including the County’s Home Rule Ordinances 74-8 and 89-7, and resolutions adopted by the Board of County Commissioners. The proceeds, together with other available moneys, were used to finance the costs of refunding all of the County’s Tourist Development Revenue Bonds, Series 1992, originally issued in the amount of $6,915,000, with a balance of $4,650,000 at the date of refunding, and the County’s outstanding promissory note payable to the Florida Local Government Finance Commission in the amount of $850,000, and to provide approximately $12,000,000 for certain improvements on Santa Rosa Island consisting of beach nourishment and certain capital improvements to the Civic Center. The principal and interest on the 2002 Bonds are payable solely from and collateralized by a lien upon and a pledge of the Tourist Development Tax levied and collected by the County. Long-Term Debt – Notes Line of Credit for Escambia County with SunTrust Bank allowed the Board to borrow up to $9,600,000 (through December 31, 1997) to finance certain capital projects. Amounts borrowed require monthly interest payments at the rate of 68% of LIBOR plus .20% per annum, adjusted quarterly. The interest rate at September 30, 2005 was 2.5356%. Annual principal payments are required through 2006. The note is collateralized by the County’s electric franchise fee. Capital Improvement Revenue Note Series 1997 allowed the County to borrow $10,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capital improvement projects. Pledged revenues toward payment of the loan are the electric franchise fees. The loan requires monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. At September 30, 2005, the rate was 3.00%. Capital Improvement Revenue Note Series 1998 permitted borrowing $20,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loan are the infrastructure sales tax revenues. Repayments under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. At September 30, 2005, the rate was 3.00%.



including (1) renovating and expanding the Sheriff’s administrative building; (2) renovating the jailinfirmary; (3) expanding the jail annex; (4) expanding the road prison; (5) acquiring and constructing aparking garage; (6) constructing, renovating and expanding certain facilities contained within theadministrative master plan; (7) constructing a library facility in Perdido Key; (8) renovating the juvenilejustice addition; (9) constructing a new one-stop permitting building; (10) finishing out the third, fourth andfifth floors of the MC. Blanchard Judicial Building; and (11) making certain stormwater improvements.The Project also includes construction and/or equipping of other capital improvements to be determinedby the County.

Capital Improvement Revenue Bonds Series 2002 in aggregate principal amount of $22,305,000 wereissued pursuant to the authority of the Constitution, the laws of the State of Florida, County ordinances,the Santa Rosa Island Authority Special Act and various resolutions, including the interlocal agreemententered into by the Authority and the County. The proceeds will be used to finance the construction ofcertain capital improvements on Santa Rosa Island including road improvements to Via DeLuna Driveand Fort Pickens Road, constructing a water reclamation and reuse system, making improvements to thestormwater management system, burying existing above-ground utilities, and making certain landscapingimprovements. The 2002 Bonds are special limited obligations of the County, payable solely from andsecured by pledge of residential and commercial lease revenues collected by Santa Rosa Island Authorityfrom island leaseholders (per interlocal agreement) and net toll revenues collected for passage acrossBob Sikes Bridge to Santa Rosa Island.

Tourist Development Revenue Refunding Bonds Series 2002 in aggregate principal amount of$16,885,000 were issued pursuant to the authority of the Constitution, and the laws of the State ofFlorida, including the County’s Home Rule Ordinances 74-8 and 89-7, and resolutions adopted by theBoard of County Commissioners. The proceeds, together with other available moneys, were used tofinance the costs of refunding all of the County’s Tourist Development Revenue Bonds, Series 1992,originally issued in the amount of $6,915,000, with a balance of $4,650,000 at the date of refunding, andthe County’s outstanding promissory note payable to the Florida Local Government Finance Commissionin the amount of $850,000, and to provide approximately $12,000,000 for certain improvements on SantaRosa Island consisting of beach nourishment and certain capital improvements to the Civic Center. Theprincipal and interest on the 2002 Bonds are payable solely from and collateralized by a lien upon and apledge of the Tourist Development Tax levied and collected by the County.

Long-Term Debt — Notes

Line of Credit for Escambia County with SunTrust Bank allowed the Board to borrow up to $9,600,000(through December 31, 1997) to finance certain capital projects. Amounts borrowed require monthlyinterest payments at the rate of 68% of LIBOR plus .20% per annum, adjusted quarterly. The interestrate at September 30, 2005 was 2.5356%. Annual principal payments are required through 2006. Thenote is collateralized by the County’s electric franchise fee.

Capital Improvement Revenue Note Series 1997 allowed the County to borrow $10,000,000 from theGulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capitalimprovement projects. Pledged revenues toward payment of the loan are the electric franchise fees. Theloan requires monthly interest payments at variable rates equal to the PSA Municipal Market, plus amaximum 34 basis points. At September 30, 2005, the rate was 3.00%.

Capital Improvement Revenue Note Series 1998 permitted borrowing $20,000,000 from the GulfBreeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towardspayment of the loan are the infrastructure sales tax revenues. Repayments under the loan requiremonthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basispoints. At September 30, 2005, the rate was 3.00%.

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Capital Improvement Revenue Note Series 1999B and 1999C permitted the County to borrow $14,000,000 and $16,000,000, respectively, from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loans are the infrastructure sales tax revenues. Repayments under the loan require semi-annual interest payments (with the interest rate set at 4.5462%). Series 1999B was paid in full as of September 30, 2005. Capital Improvement Revenue Note Series 2003 permitted the County to borrow $3,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund a capital building project for the Work Release Facility. There is a covenant by the Board to annually budget and appropriate sufficient funds to pay the debt service. The Board intends to use revenues generated from the Work Release Program. Repayments under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. At September 30, 2005, the rate was 3.00%. Florida’s Toll Facilities Revolving Trust Fund (TFRTF) allowed the County, in 1996, to enter into a loan agreement with the State of Florida’s TFRTF. The TFRTF was created by the Florida Legislature to encourage the development and enhancement of the financial feasibility of revenue-producing road projects undertaken by local governmental entities. These interest-free advances are to be repaid either from proceeds from the project’s anticipated bond issue or by installment payments over a five year period beginning in the seventh year from the date of the advance. Payments began in 2003. These advances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of I-110). Capital Leases The Board of County Commissioners is obligated under lease-purchase agreements for purchases of software, heavy equipment, new chiller equipment, and the construction of a new Work Release Facility. These leases qualify as capital leases for accounting purposes and are recorded at the present value of the future minimum lease payments at the inception of the lease. The acquired assets have been recorded in the governmental fund assets of Escambia County, Florida at a value of $8,811,621. Amortization on equipment under capital lease is included in depreciation expense. The Santa Rosa Island Authority has entered into several capital leases for office equipment with terms of 36-60 months. The acquired assets have been recorded at a net book value of $97,737. Amortization on equipment under capital lease is included in depreciation expense.



Capital Improvement Revenue Note Series 1999B and 1999C permitted the County to borrow$14,000,000 and $16,000,000, respectively, from the Gulf Breeze, Florida Capital Funding Program tofund additional capital projects. Pledged revenues towards payment of the loans are the infrastructuresales tax revenues. Repayments under the loan require semi-annual interest payments (with the interestrate set at 4.5462%). Series 1999B was paid in full as of September 30, 2005.

Capital Improvement Revenue Note Series 2003 permitted the County to borrow $3,000,000 from theGulf Breeze, Florida Capital Funding Program to fund a capital building project for the Work ReleaseFacility. There is a covenant by the Board to annually budget and appropriate sufficient funds to pay thedebt service. The Board intends to use revenues generated from the Work Release Program.Repayments under the loan require monthly interest payments at variable rates equal to the PSAMunicipal Market, plus a maximum 34 basis points. At September 30, 2005, the rate was 3.00%.

Florida’s Toll Facilities Revolving Trust Fund (TFRTF) allowed the County, in 1996, to enter into aloan agreement with the State of Florida’s TFRTF. The TFRTF was created by the Florida Legislature toencourage the development and enhancement of the financial feasibility of revenue-producing roadprojects undertaken by local governmental entities. These interest-free advances are to be repaid eitherfrom proceeds from the project’s anticipated bond issue or by installment payments over a five yearperiod beginning in the seventh year from the date of the advance. Payments began in 2003. Theseadvances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of l-110).

Capital Leases

The Board of County Commissioners is obligated under lease-purchase agreements for purchases ofsoftware, heavy equipment, new chiller equipment, and the construction of a new Work Release Facility.These leases qualify as capital leases for accounting purposes and are recorded at the present value ofthe future minimum lease payments at the inception of the lease. The acquired assets have beenrecorded in the governmental fund assets of Escambia County, Florida at a value of $8,811,621.Amortization on equipment under capital lease is included in depreciation expense.

The Santa Rosa Island Authority has entered into several capital leases for office equipment with terms of36-60 months. The acquired assets have been recorded at a net book value of $97,737. Amortization onequipment under capital lease is included in depreciation expense.

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Maturities of the obligations under capital lease are as follows: Board of Santa Rosa Tax County Island Collector Commissioners Authority Balance 10/01/04 $212,333 $8,074,492 $8,137 Additions 0 0 40,437 Principal payments (212,333) (1,442,824) (10,760)

Balance 09/30/05 $0 $6,631,668 $37,814

Future lease payments 2006 $0 $1,673,282 $24,686 2007 0 1,673,279 23,091 2008 0 1,673,281 3,469 2009 0 780,111 0 2010 0 780,113 0 2011 - 2014 0 585,084 0 Total minimum lease payments 0 7,165,150 51,246 Less amount representing interest 0 (533,482) (13,432)

Net minimum lease payments $0 $6,631,668 $37,814

Refunding of Outstanding Debt in prior years permitted the County to defease certain special obligation and other revenue bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service payments on the old bonds. Accordingly, the trust account asset and liabilities are not included in the County’s financial statements. On September 30, 2005, seven bond issues are outstanding with an aggregate principal amount of $69,350,000. Long-Term Debt – Arbitrage Liability represents the excess of interest earned from the investment of certain debt proceeds and pledged revenues over the yield rate of the applicable debt. Pursuant to Section 148 (f) of the U.S. Internal Revenue Code, the County must rebate any excess to the United States Government. Arbitrage rebate, if any, is due and payable on each five-year anniversary of the respective bond issue. For the fiscal year ended September 30, 2005, there is no arbitrage rebate liability outstanding. Conduit Debt Obligations have been established in the County’s name by 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. Neither 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, 2005, the outstanding conduit debt of Escambia County is $2,416,394,828. Landfill Closure and Postclosure Care Payable represents the accrued liability for closure and post-closure costs for the County’s landfills. Regulations require the County to cover landfills when they stop accepting waste and to perform certain maintenance and monitoring functions for thirty years after closure. Although closure and postclosure care costs will be paid only near or after the date the landfills stop accepting waste, the County reports a portion of these closure and postclosure care costs as an operating expense in each period based on landfill capacity used as of each balance sheet date.



Maturities of the obligations under capital lease are as follows:

Board of Santa RosaTax County Island

Collector Commissioners AuthorityBalance 10/01/04 $212,333 $8,074,492 $8,137Additions 0 0 40,437Principal payments (212,333) (1,442,824) (10,760)

Balance 09/30/05 $0 $6,631,668 $37,814

Future lease payments2006 $0 $1,673,282 $24,6862007 1,673,279 23,0912008 1,673,281 3,4692009 780,111 02010 780,113 0

2011 - 2014 585,084 0Total minimum lease payments 7,165,150 51,246Less amount representing interest (533,482) (13,432)

Net minimum lease payments $0 $6,631,668 $37,814

OO

OO

OO

O

Refunding of Outstanding Debt in prior years permitted the County to defease certain special obligationand other revenue bonds by placing the proceeds of new bonds in irrevocable trusts to provide for allfuture debt service payments on the old bonds. Accordingly, the trust account asset and liabilities are notincluded in the County’s financial statements. On September 30, 2005, seven bond issues areoutstanding with an aggregate principal amount of $69,350,000.

Long-Term Debt — Arbitrage Liability represents the excess of interest earned from the investment ofcertain debt proceeds and pledged revenues over the yield rate of the applicable debt. Pursuant toSection 148 (f) of the US. Internal Revenue Code, the County must rebate any excess to the UnitedStates Government. Arbitrage rebate, if any, is due and payable on each five-year anniversary of therespective bond issue. For the fiscal year ended September 30, 2005, there is no arbitrage rebate liabilityoutstanding.

Conduit Debt Obligations have been established in the County’s name by private sector entities for theacquisition 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 theunderlying mortgage loans. Neither the County, the State nor any political subdivision thereof is obligatedin any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in theaccompanying financial statements. As of September 30, 2005, the outstanding conduit debt ofEscambia County is $2,416,394,828.

Landfill Closure and Postclosure Care Payable represents the accrued liability for closure and post-closure costs for the County’s landfills. Regulations require the County to cover landfills when they stopaccepting waste and to perform certain maintenance and monitoring functions for thirty years afterclosure. Although closure and postclosure care costs will be paid only near or after the date the landfillsstop accepting waste, the County reports a portion of these closure and postclosure care costs as anoperating expense in each period based on landfill capacity used as of each balance sheet date.

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Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill is the only site accepting waste. At year end, $14,489,547 was reported ($95,024 payable from restricted assets and $14,394,523 as long-term liability) as the landfill closure and postclosure care liability in the statement of net assets. This amount is based upon estimated costs to perform closure and postclosure care in 2005, determined from the most recently available engineering studies computed on the ratio of landfill capacity filled at year end to total estimated capacity (87.30%). The County will recognize the remaining estimated costs of closure and postclosure care of approximately $1.7 million as the remaining estimated capacity is filled. The Perdido Landfill is expected to be filled between early 2006 and mid-2008. Actual cost may be higher due to inflation, changes in technology or changes in regulations. Closure and Postclosure Care Liability: Beginning Ending Balance Balance 10/01/04 Additions Deletions 09/30/05 Current: $93,161 $245,924 ($244,061) $95,024 Long-term Liability 9,221,432 5,173,091 0 14,394,523

Total $9,314,593 $5,419,015 ($244,061) $14,489,547

State and federal laws and regulations require the County to make annual contributions to a cash escrow account to accumulate funds for future closure and maintenance costs. The County is in compliance with these requirements at September 30, 2005 with restricted cash and investments of $6,075,347 held for these purposes. In the event closure escrows and interest earnings prove inadequate due to inflation, changes in technology or additional closure/postclosure care requirements, these costs may need to be covered by increased user charges.

NOTE 4 – OTHER INFORMATION The Risk Management program was established by the Board to self-insure certain types of claims against the Board of County Commissioners, Constitutional Officers, Civil Service Board and Santa Rosa Island Authority including losses related to theft, damage and destruction of assets; torts; errors and omissions; injuries to employees; and natural disasters. The following are the types of risks and coverage:

Workers Compensation – self insured up to a limit of $550,000 per occurrence with excess limits to $1,000,000. Casualty and Property – Casualty limits are $100,000 per claim with a $200,000 aggregate. Property limits are $100,000 self insured retentions per occurrence with excess limits to $200,000,000.

During the fiscal year ended September 30, 2005, the County had no significant reductions in insurance coverage from the prior year. In addition, there have been no settlements which exceeded the County’s insurance coverage for the last three fiscal years. The County currently reports all of its risk management activities, in the Internal Service Fund. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). The undiscounted claims liabilities totaling $13,901,801 reported in the Internal Service Fund at September 30, 2005 are actuarially determined based on historical and current information regarding the Fund.



Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill isthe only site accepting waste.

At year end, $14,489,547 was reported ($95,024 payable from restricted assets and $14,394,523 as long-term liability) as the landfill closure and postclosure care liability in the statement of net assets. Thisamount is based upon estimated costs to perform closure and postclosure care in 2005, determined fromthe most recently available engineering studies computed on the ratio of landfill capacity filled at year endto total estimated capacity (87.30%). The County will recognize the remaining estimated costs of closureand postclosure care of approximately $1.7 million as the remaining estimated capacity is filled. ThePerdido Landfill is expected to be filled between early 2006 and mid-2008. Actual cost may be higher dueto inflation, changes in technology or changes in regulations.

Closure and Postclosure Care Liability:Beginning EndingBalance Balance10/01/04 Additions Deletions 09/30/05

Current: $93,161 $245,924 ($244,061) $95,024Long-term Liability 9,221,432 5,173,091 0 14,394,523Total $9,314,593 $5,419,015 ($244,061) $14,489,547

State and federal laws and regulations require the County to make annual contributions to a cash escrowaccount to accumulate funds for future closure and maintenance costs. The County is in compliance withthese requirements at September 30, 2005 with restricted cash and investments of $6,075,347 held forthese purposes. In the event closure escrows and interest earnings prove inadequate due to inflation,changes in technology or additional closure/postclosure care requirements, these costs may need to becovered by increased user charges.

NOTE 4 — OTHER INFORMATION

The Risk Management program was established by the Board to self-insure certain types of claimsagainst the Board of County Commissioners, Constitutional Officers, Civil Service Board and Santa RosaIsland Authority including losses related to theft, damage and destruction of assets; torts; errors andomissions; injuries to employees; and natural disasters. The following are the types of risks andcoverage:

Workers Compensation — self insured up to a limit of $550,000 per occurrence with excess limits to $1,000,000.

Casualty and Property — Casualty limits are $100,000 per claim with a $200,000 aggregate. Property limits are $100,000self insured retentions per occurrence with excess limits to $200,000,000.

During the fiscal year ended September 30, 2005, the County had no significant reductions in insurancecoverage from the prior year. In addition, there have been no settlements which exceeded the County’sinsurance coverage for the last three fiscal years.

The County currently reports all of its risk management activities, in the Internal Service Fund. Liabilitiesare reported when it is probable that a loss has occurred and the amount of the loss can be reasonablyestimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). Theundiscounted claims liabilities totaling $13,901,801 reported in the Internal Service Fund at September30, 2005 are actuarially determined based on historical and current information regarding the Fund.

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Changes in the estimated liability for self-insured losses for the past two years are as follows: 2005 2004 Unpaid claims, beginning $17,944,503 $16,951,375 Claims incurred and changes in estimates (63,380) 8,503,647 Less: claims paid (3,979,322) (7,510,519)Unpaid claims, ending 13,901,801 17,944,503

Estimated claims due within one year (5,744,920)

Estimated claims due longer than one year $8,156,881

Employee Retirement Systems and Pension Plans utilized by the County consists of a multiple employer, cost sharing defined benefit pension plan for most full-time County employees through the Florida Retirement System (FRS). The FRS, established in 1970 by Chapter 121, Florida Statutes is controlled by the State Legislature and administered by the State of Florida, Department of Administration, Division of Retirement. Changes to the law can be made only by an act of the Florida Legislature. Rules governing the operation and administration of the system may be found in Chapter 60S of the Florida Administrative Code. The FRS issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Florida Retirement System, 2639-C North Monroe Street, Tallahassee, Florida 32399-1560. The FRS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The FRS provides for vesting of benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with 10 or more years of service, or to those employees who have at least 30 years of creditable service, regardless of age. Early retirement is available after 10 years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based upon age, average compensation and years-of-service credit where average compensation is computed as the average of an individual’s five highest years of earnings. The Deferred Retirement Option Program (DROP) is a program under which an eligible member of the FRS may elect to participate, deferring receipt of retirement benefits while continuing employment with a FRS employer. The deferred monthly benefit accrues on behalf of the participant, plus interest compounded monthly, for the specified period of the DROP participation. Upon termination of employment, the participant receives the total DROP benefits and begins to receive previously determined retirement benefits. The FRS is noncontributory for employees and all contributions are made by participating FRS employers. Participating employer contributions are based upon state-wide rates established by the State of Florida. Average contribution rates for the year ended September 30, 2005 were as follows: regular employees, 7.50%, special risk employees, 18.53%, elected officials, 15.23%, senior management employees, 9.64%, and DROP participants, 9.17%.



Changes in the estimated liability for self-insured losses for the past two years are as follows:

2005 2004Unpaid claims, beginning $17,944,503 $16,951,375Claims incurred and changes in estimates (63,380) 8,503,647Less: claims paid (3,979,322) (7,510,519)

Unpaid claims, ending 13,901,801 17,944,503

Estimated claims due within one year (5,744,920)

Estimated claims due longer than one year $8,156,881

Employee Retirement Systems and Pension Plans utilized by the County consists of a multipleemployer, cost sharing defined benefit pension plan for most full-time County employees through theFlorida Retirement System (FRS). The FRS, established in 1970 by Chapter 121, Florida Statutes iscontrolled by the State Legislature and administered by the State of Florida, Department ofAdministration, Division of Retirement. Changes to the law can be made only by an act of the FloridaLegislature. Rules governing the operation and administration of the system may be found in Chapter608 of the Florida Administrative Code. The FRS issues a publicly available financial report that includesfinancial statements and required supplementary information. The report may be obtained by writing tothe Florida Retirement System, 2639-0 North Monroe Street, Tallahassee, Florida 32399-1560.

The FRS provides retirement and disability benefits, annual cost-of—living adjustments, and death benefitsto plan members and beneficiaries. The FRS provides for vesting of benefits after six years of creditableservice. Normal retirement benefits are available to employees who retire at or after age 62 with 10 ormore years of service, or to those employees who have at least 30 years of creditable service, regardlessof age. Early retirement is available after 10 years of service with a 5% reduction of benefits for eachyear prior to the normal retirement age. Retirement benefits are based upon age, average compensationand years-of—service credit where average compensation is computed as the average of an individual’sfive highest years of earnings.

The Deferred Retirement Option Program (DROP) is a program under which an eligible member of theFRS may elect to participate, deferring receipt of retirement benefits while continuing employment with aFRS employer. The deferred monthly benefit accrues on behalf of the participant, plus interestcompounded monthly, for the specified period of the DROP participation. Upon termination ofemployment, the participant receives the total DROP benefits and begins to receive previouslydetermined retirement benefits.

The FRS is noncontributory for employees and all contributions are made by participating FRSemployers. Participating employer contributions are based upon state-wide rates established by theState of Florida. Average contribution rates for the year ended September 30, 2005 were as follows:regular employees, 7.50%, special risk employees, 18.53%, elected officials, 15.23%, seniormanagement employees, 9.64%, and DROP participants, 9.17%.

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Contributions made are equal to the actuarially determined contribution requirements for each year and are funded on a pay-as-you-go basis. Contributions for the past three years were as follows: 2005 2004 2003 Primary government $11,496,932 $10,948,840 $9,048,365 Discretely presented component units: Civil Service Board 42,192 34,732 33,445 Santa Rosa Island Authority 111,920 93,719 83,667 Law Library Board 1,483 1,558 1,753 $11,652,527 $11,078,849 $9,167,230

Leasing Arrangements provide almost all of the revenues for the Santa Rosa Island Authority. The Authority leases the land on County-owned Santa Rosa Island to residents and businesses under residential and commercial leases that typically run for a period of 99 years. Many of the 99-year leases have options to renew for another 99-year term. Many leases, particularly those for restaurants and concessions, are generally for a shorter period. Lease payments in future years are estimated to average approximately $3.6 million per year. Construction Commitments - The County has active construction projects as of September 30, 2005 as follows: Engineering Services - Building $1,188,835 Engineering Services - Road Paving and Drainage 2,012,571 Engineering Services - Parks 142,682 Engineering Services - Solid Waste 755,453 Building Contract - Building Construction 24,810,989 Road Contract - Road Paving and Drainage 8,262,899 Construction Contract - Solid Waste 19,885,194 Miscellaneous Contracts 457,561

$57,516,184

Of these commitments, $56,101,245 is reported in the governmental fund financial statements as reserved for encumbrances. The remaining $1,414,939 represents commitments in proprietary type funds which are not included in the financial statements in accordance with GAAP. These commitments are evidenced by signed purchase orders and contracts which were entered into prior to September 30, 2005. Other Commitments - The County has various non-construction contractual commitments at fiscal year end that will be re-appropriated in the new fiscal year. These commitments of $1,277,512 are included in Reserve for Encumbrances at September 30, 2005. The Santa Rosa Island Authority entered into various capital improvement contracts during the year. As of September 30, 2005, the Authority had outstanding commitments under these contracts totaling $15,705,310. On September 30, 2002 the Santa Rosa Island Authority’s Board of Directors approved an interlocal agreement with Escambia County in connection with certain plans for economic development, transportation and beach improvements at Pensacola Beach. By resolution approved by the Santa Rosa Island Authority Board, the Authority’s lease fee revenues are pledged for repayment of Tourist



Contributions made are equal to the actuarially determined contribution requirements for each year andare funded on a pay-as-you-go basis. Contributions for the past three years were as follows:

2005 2004 2003Primary government $11,496,932 $10,948,840 $9,048,365Discretely presented component units:Civil Service Board 42,192 34,732 33,445Santa Rosa Island Authority 111,920 93,719 83,667Law Library Board 1,483 1,558 1,753

$11,652,527 $11,078,849 $9,167,230

Leasing Arrangements provide almost all of the revenues for the Santa Rosa Island Authority. TheAuthority leases the land on County-owned Santa Rosa Island to residents and businesses underresidential and commercial leases that typically run for a period of 99 years. Many of the 99-year leaseshave options to renew for another 99-year term. Many leases, particularly those for restaurants andconcessions, are generally for a shorter period. Lease payments in future years are estimated to averageapproximately $3.6 million per year.

Construction Commitments - The County has active construction projects as of September 30, 2005 asfollows:

Engineering Services - Building $1,188,835Engineering Services - Road Paving and Drainage 2,012,571Engineering Services - Parks 142,682Engineering Services - Solid Waste 755,453Building Contract - Building Construction 24,810,989Road Contract - Road Paving and Drainage 8,262,899Construction Contract - Solid Waste 19,885,194Miscellaneous Contracts 457,561

$57,516,184

Of these commitments, $56,101,245 is reported in the governmental fund financial statements asreserved for encumbrances. The remaining $1,414,939 represents commitments in proprietary typefunds which are not included in the financial statements in accordance with GAAP. These commitmentsare evidenced by signed purchase orders and contracts which were entered into prior to September 30,2005.

Other Commitments - The County has various non-construction contractual commitments at fiscal yearend that will be re-appropriated in the new fiscal year. These commitments of $1 ,277,512 are included inReserve for Encumbrances at September 30, 2005.

The Santa Rosa Island Authority entered into various capital improvement contracts during the year. Asof September 30, 2005, the Authority had outstanding commitments under these contracts totaling$15,705,310.

On September 30, 2002 the Santa Rosa Island Authority’s Board of Directors approved an interlocalagreement with Escambia County in connection with certain plans for economic development,transportation and beach improvements at Pensacola Beach. By resolution approved by the Santa RosaIsland Authority Board, the Authority’s lease fee revenues are pledged for repayment of Tourist

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Development Refunding Revenue Bonds, Series 2002 and the Capital Improvement Revenue Bonds, Series 2002. The Authority is scheduled to make payments to Escambia County of at least $600,000 each year through 2032. In 2001, the Sheriff entered into a cancelable agreement with a vendor to provide for the delivery of reasonably necessary medical care to individuals under the custody and control of the Sheriff. The agreement has an initial term of three years, and is renewable under terms for two additional one-year terms thereafter, unless either party delivers written notice of nonrenewal. Effective September 1, 2004, the agreement was renewed for the first of the two optional one-year terms, at a base price of $3,761,585. On September 29, 2005 the agreement was amended for a one-year renewal term of twelve months commencing on October 1, 2005 and ending on September 30, 2006. Under the agreement, the Sheriff will pay the base price of $4,040,616. In addition, the Sheriff will pay $.88 per inmate per day for those inmates assigned to the Work Camp during the contract period. Financial considerations are based upon predetermined inmate populations and adjustments to the payments will be made based on variations from the monthly population. Medical service expense under this contract for the year ended September 30, 2005 was approximately $4,300,000. The Sheriff has a cancelable agreement with a vendor to provide management, food, materials and supplies to feed the inmate population at the corrections facility and the Escambia County Jail. The initial term of the agreement commenced June 1, 2001 and ended on December 31, 2004. Effective March 1, 2005, the Sheriff agreed to extend the contract beginning March 1, 2005 and ending on February 28, 2010. Upon mutual agreement, the agreement may be renewed for two one-year periods and each year thereafter. The Sheriff will pay at the rate of $.882 per meal, subject to annual inflation adjustments. Food service expense under this contract for the year ended September 30, 2005 was $1,700,000. Operating leases for the Board of County Commissioners are for various spaces throughout the County containing minimum guaranteed rentals averaging $30,158 monthly. The Board of County Commissioners has the option to extend lease terms annually. Lease expense for the year ended September 30, 2005 was $361,901. The Tax Collector is obligated under operating leases for office space with noncancellable terms in excess of one year as of September 30, 2005. Rent expense for the year ended September 30, 2005 was $252,630. Future minimum payments, as of September 30, 2005 for the Tax Collector, are as follows: Tax Collector Year Amount 2006 229,376 2007 230,325 2008 250,764 2009 281,713 2010 296,152 2011 and after 1,099,946

$2,388,276



Development Refunding Revenue Bonds, Series 2002 and the Capital Improvement Revenue Bonds,Series 2002. The Authority is scheduled to make payments to Escambia County of at least $600,000each year through 2032.

In 2001, the Sheriff entered into a cancelable agreement with a vendor to provide for the delivery ofreasonably necessary medical care to individuals under the custody and control of the Sheriff. Theagreement has an initial term of three years, and is renewable under terms for two additional one-yearterms thereafter, unless either party delivers written notice of nonrenewal. Effective September 1, 2004,the agreement was renewed for the first of the two optional one-year terms, at a base price of$3,761,585. On September 29, 2005 the agreement was amended for a one-year renewal term of twelvemonths commencing on October 1, 2005 and ending on September 30, 2006. Under the agreement, theSheriff will pay the base price of $4,040,616. In addition, the Sheriff will pay $.88 per inmate per day forthose inmates assigned to the Work Camp during the contract period. Financial considerations are basedupon predetermined inmate populations and adjustments to the payments will be made based onvariations from the monthly population. Medical service expense under this contract for the year endedSeptember 30, 2005 was approximately $4,300,000.

The Sheriff has a cancelable agreement with a vendor to provide management, food, materials andsupplies to feed the inmate population at the corrections facility and the Escambia County Jail. The initialterm of the agreement commenced June 1, 2001 and ended on December 31, 2004. Effective March 1,2005, the Sheriff agreed to extend the contract beginning March 1, 2005 and ending on February 28,2010. Upon mutual agreement, the agreement may be renewed for two one-year periods and each yearthereafter. The Sheriff will pay at the rate of $882 per meal, subject to annual inflation adjustments.Food service expense under this contract for the year ended September 30, 2005 was $1,700,000.

Operating leases for the Board of County Commissioners are for various spaces throughout the Countycontaining minimum guaranteed rentals averaging $30,158 monthly. The Board of CountyCommissioners has the option to extend lease terms annually. Lease expense for the year endedSeptember 30, 2005 was $361,901.

The Tax Collector is obligated under operating leases for office space with noncancellable terms inexcess of one year as of September 30, 2005. Rent expense for the year ended September 30, 2005was $252,630.

Future minimum payments, as of September 30, 2005 for the Tax Collector, are as follows:

TaxCollector

Year Amount2006 229,3762007 230,3252008 250,7642009 281,7132010 296,152

2011 and after 1,099,946

$2,388,276

62



63

NOTE 5 – CONTINGENT LIABILITIES The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County Attorney the resolution of these matters will not have a material adverse effect on the financial condition of the County. The County receives significant financial assistance from federal and state agencies primarily in the form of capital and operating grants. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by grantor agencies. Disallowed claims, if any, resulting from such audits may become liabilities of the County. However, in the opinion of management, disallowed claims, if any, will not have a material effect on the County’s financial statements.

NOTE 6 – INTERNAL SERVICE FUNDS The Sheriff and Clerk each established an internal service fund, effective October 1, 2004, to record the annual costs related to their respective compensated absences policies, to record the short-term and long-term components of such liabilities (including payments to employees), and to collect and hold cash and investments necessary to liquidate such liabilities. The related costs associated with these funds will be recovered via charges to the respective general funds and other funds having employees, in accordance with generally accepted criteria for establishment and use of an internal service fund. At September 30, 2005, the Sheriff’s and Clerk’s internal service funds have accumulated deficits of $14,060,265 and $1,360,602, respectively, which will be eliminated over a reasonable period of time based upon a moving amortization period. The establishment of the Internal Service Fund resulted in a restatement of beginning net assets of $15,065,130 for the Sheriff and $1,333,849 for the Clerk.

NOTE 7 – SIGNIFICANT EVENTS While still recovering from Hurricane Ivan, which struck Escambia County in September 2004, Escambia County was struck by several other natural disasters during fiscal year 2005. In June 2005, Escambia County was visited by Tropical Storm (TS) Arlene and TS Cindy. In July 2005, Escambia County was struck by Hurricane Dennis. Escambia County also felt the effects of both Hurricane Katrina and Hurricane Rita. The County incurred significant payroll and operating costs related to work performed in the aid of public safety during the aftermath of these various storms. Escambia County, Florida was subsequently identified to be included in a major disaster declaration, issued by the US Department of Homeland Security. In addition, the State of Florida Office of the Governor issued an Executive Order to declare a state of emergency for areas affected by the storms. These Federal and State declarations provide for the reimbursement of related costs at 75% of eligible costs from Federal funding and 18.75% from State funding sources. The County will pay the remaining 6.25%. The County has estimated and included in the Disaster Recovery Fund those costs expected to be reimbursed from Federal and State sources. Final disposition of these costs is subject to review and approval by the Federal and State agencies prior to payment. The County continues to make assessments of the overall financial impact caused by these storms.



NOTE 5 — CONTINGENT LIABILITIES

The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presentlydeterminable, in the opinion of the County Attorney the resolution of these matters will not have a materialadverse effect on the financial condition of the County.

The County receives significant financial assistance from federal and state agencies primarily in the formof capital and operating grants. The disbursement of funds received under these programs generallyrequires compliance with terms and conditions specified in the grant agreements and is subject to auditby grantor agencies. Disallowed claims, if any, resulting from such audits may become liabilities of theCounty. However, in the opinion of management, disallowed claims, if any, will not have a material effecton the County’s financial statements.

NOTE 6 — INTERNAL SERVICE FUNDS

The Sheriff and Clerk each established an internal service fund, effective October 1, 2004, to record theannual costs related to their respective compensated absences policies, to record the short-term andlong-term components of such liabilities (including payments to employees), and to collect and hold cashand investments necessary to liquidate such liabilities. The related costs associated with these funds willbe recovered via charges to the respective general funds and other funds having employees, inaccordance with generally accepted criteria for establishment and use of an internal service fund. AtSeptember 30, 2005, the Sheriff’s and Clerk’s internal service funds have accumulated deficits of$14,060,265 and $1,360,602, respectively, which will be eliminated over a reasonable period of timebased upon a moving amortization period.

The establishment of the Internal Service Fund resulted in a restatement of beginning net assets of$15,065,130 for the Sheriff and $1,333,849 for the Clerk.

NOTE 7 — SIGNIFICANT EVENTS

While still recovering from Hurricane Ivan, which struck Escambia County in September 2004, EscambiaCounty was struck by several other natural disasters during fiscal year 2005. In June 2005, EscambiaCounty was visited by Tropical Storm (TS) Arlene and TS Cindy. In July 2005, Escambia County wasstruck by Hurricane Dennis. Escambia County also felt the effects of both Hurricane Katrina andHurricane Rita. The County incurred significant payroll and operating costs related to work performed inthe aid of public safety during the aftermath of these various storms. Escambia County, Florida wassubsequently identified to be included in a major disaster declaration, issued by the US Department ofHomeland Security. In addition, the State of Florida Office of the Governor issued an Executive Order todeclare a state of emergency for areas affected by the storms. These Federal and State declarationsprovide for the reimbursement of related costs at 75% of eligible costs from Federal funding and 18.75%from State funding sources. The County will pay the remaining 6.25%. The County has estimated andincluded in the Disaster Recovery Fund those costs expected to be reimbursed from Federal and Statesources. Final disposition of these costs is subject to review and approval by the Federal and Stateagencies prior to payment. The County continues to make assessments of the overall financial impactcaused by these storms.

63



64

NOTE 8 – SUBSEQUENT EVENTS

On June 17, 2004, Chapter 2004-422, Laws of Florida repealed previous laws creating the Escambia County Civil Service Board effective October 1, 2005. As a result, the Civil Service Board ceased operations at the close of business on September 30, 2005, and substantially all assets, liabilities, and fund balances (net assets) were transferred to the Escambia County Board of County Commissioners.



NOTE 8 — SUBSEQUENT EVENTS

On June 17, 2004, Chapter 2004-422, Laws of Florida repealed previous laws creating the EscambiaCounty Civil Service Board effective October 1, 2005. As a result, the Civil Service Board ceasedoperations at the close of business on September 30, 2005, and substantially all assets, liabilities, andfund balances (net assets) were transferred to the Escambia County Board of County Commissioners.

64

NON-MAJOR FINANCIAL STATEMENTS NON-MAJOR FINANCIAL STATEMENTS

NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Mass Transit Fund - to account for the operation and maintenance of the Escambia County Transit System. Financing is provided from user fees, reimbursement from the City of Pensacola and an Urban Mass Transit Administration operating grant. Grant Projects – to account for financing provided from various State and Federal grants, such as Federal Emergency Management Agency (FEMA), Mosquito and Anthropod control, affordable housing programs and CDBG and HUD Housing programs. Tourist Promotion Fund - to account for revenues restricted for promotion, development and advertisement of Escambia County tourism. Financing is provided by a tourist development tax levied under Chapter 125.0104 Florida Statutes. Public Safety Programs – to account for revenues and costs associated with various programs such as the misdemeanor probation program, deputies training programs, law enforcement forfeiture proceedings, traffic control and parking violations, family mediation, fire protection and emergency 9-1-1 operations. Bob Sikes Toll Facilities Fund - to account for monies received from tolls, rates, fees, permits and passes for the operation, maintenance and debt service of the bridge, and other expenses for parks and recreation on Santa Rosa Island as approved by the Board of County Commissioners. Clerk’s Public Records Modernization Trust Fund- to account for monies collected according to Chapter 28.24, Florida Statutes to be used exclusively for equipment, personnel training, and technical assistance in modernizing the official records system and to pay for equipment and start up costs necessitated by a statewide recording system. Clerk’s Court Fund – to account for revenues and costs for court related fees, charges, costs, fines and other monetary penalties. Sheriff’s Programs – to account for the collection and expenditure of U.S. Treasury and U.S. Justice forfeiture sharing programs, as well as monies received from various Federal and State grants. This also includes the revenues and expenditures generated by the jail commissary. Community Redevelopment Agency (CRA) – to account for the revenues and expenditures for the redevelopment areas established by the County. General Trust Fund – to account for monies donated to the County for a specific purpose. CAPITAL PROJECTS FUNDS Capital Improvement Fund – to account for resources designated for use on various capital improvements. Federal Transit Administration Fund - to account for the cost of machinery, equipment, and office furniture for the Mass Transit activity for the County. Financing was provided by an Urban Mass Transportation Administration Grant (80%), State matching funds (10%), and Escambia County matching funds (10%). Road Construction – to account for local option gas taxes used for the acquisition and construction of new roads, special assessments to property owners for the specifically benefited properties and loan proceeds used for the engineering study on the feasibility of Interstate 110 extension.

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Mass Transit Fund - to account for the operation and maintenance ofthe Escambia County Transit System.Financing is provided from user fees, reimbursement from the City of Pensacola and an Urban Mass TransitAdministration operating grant.

Grant Projects — to account for financing provided from various State and Federal grants, such as FederalEmergency Management Agency (FEMA), Mosquito and Anthropod control, affordable housing programs andCDBG and HUD Housing programs.

Tourist Promotion Fund - to account for revenues restricted for promotion, development and advertisementof Escambia County tourism. Financing is provided by a tourist development tax levied under Chapter125.0104 Florida Statutes.

Public Safety Programs — to account for revenues and costs associated with various programs such as themisdemeanor probation program, deputies training programs, law enforcement forfeiture proceedings, trafficcontrol and parking violations, family mediation, fire protection and emergency 9-1-1 operations.

Bob Sikes Toll Facilities Fund - to account for monies received from tolls, rates, fees, permits and passes forthe operation, maintenance and debt service of the bridge, and other expenses for parks and recreation onSanta Rosa Island as approved by the Board of County Commissioners.

Clerk’s Public Records Modernization Trust Fund- to account for monies collected according to Chapter28.24, Florida Statutes to be used exclusively for equipment, personnel training, and technical assistance inmodernizing the official records system and to pay for equipment and start up costs necessitated by astatewide recording system.

Clerk’s Court Fund — to account for revenues and costs for court related fees, charges, costs, fines andother monetary penalties.

Sheriff’s Programs — to account for the collection and expenditure of US. Treasury and US. Justiceforfeiture sharing programs, as well as monies received from various Federal and State grants. This alsoincludes the revenues and expenditures generated by the jail commissary.

Community Redevelopment Agency (CRA) — to account for the revenues and expenditures for theredevelopment areas established by the County.

General Trust Fund — to account for monies donated to the County for a specific purpose.

CAPITAL PROJECTS FUNDS

Capital Improvement Fund — to account for resources designated for use on various capital improvements.

Federal Transit Administration Fund - to account forthe cost of machinery, equipment, and office furniturefor the Mass Transit activity for the County. Financing was provided by an Urban Mass TransportationAdministration Grant (80%), State matching funds (10%), and Escambia County matching funds (10%).

Road Construction — to account for local option gas taxes used for the acquisition and construction of newroads, special assessments to property owners for the specifically benefited properties and loan proceedsused for the engineering study on the feasibility of Interstate 110 extension.


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET Special Revenue Funds

Bob Clerk'sSEPTEMBER 30, 2005 Public Sikes Public Records Clerk's

Mass Grant Tourist Safety Toll Modernization CourtAssets Transit Projects Promotion Programs Facilities Trust Fund

Cash and cash equivalents $0 $4,335,480 $0 $45,413 $600 $143,057 $0Equity in pooled cash and investments 67,997 2,095,922 4,155,929 6,588,972 1,042,016 0 1,469,456Investments 0 0 0 0 0 0 0Receivables (net of allowance for uncollectibles) 744,934 71,205 0 67,749 411,079 21 701Due from other funds 0 489 0 159,675 0 0 0Due from other governmental units 318,617 2,203,873 184 157,468 109,676 0 160,164Inventory 159,808 0 0 107,979 0 0 0 Total assets $1,291,356 $8,706,969 $4,156,113 $7,127,256 $1,563,371 $143,078 $1,630,321

Liabilities and Fund Balances

Liabilities: Vouchers payable $12,592 $1,103,472 $455,345 $601,720 $8,248 $0 $18,067 Contracts payable 0 60,650 0 49,666 0 0 0 Salaries payable 0 21,653 0 218,841 0 0 216,598 Due to other funds 654,523 13,040 0 0 0 0 307,700 Due to other governmental units 2,065 187,294 599 31,088 4,831 0 996,877 Other current liabilities 0 217,018 0 0 0 0 91,079 Total liabilities 669,180 1,603,127 455,944 901,315 13,079 0 1,630,321

Fund balances: Reserved for encumbrances 0 2,102,067 76,417 355,683 4,622 0 0 Reserved for inventory 159,808 0 0 107,979 0 0 0 Unreserved - undesignated 462,368 5,001,775 3,623,752 5,762,279 1,545,670 143,078 0 Total fund balances 622,176 7,103,842 3,700,169 6,225,941 1,550,292 143,078 0 Total liabilities and fund balances $1,291,356 $8,706,969 $4,156,113 $7,127,256 $1,563,371 $143,078 $1,630,321

(Continued)

65


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET Special Revenue Funds

Bob Clerk'sSEPTEMBER 30, 2005 Public Sikes Public Records Clerk‘s

Mass Grant Tourist Safety Toll Modernization CourtAssets Transit Pro'ects Promotion Programs Facilities M M

Cash and cash equivalents $0 $4,335,480 $0 $45,413 $600 $143,057 $0Equity in pooled cash and investments 67,997 2,095,922 4,155,929 6,588,972 1,042,016 0 1,469,456Investments 0 0 0 0 0 0 0Receivables (net of allowance for uncollectibles) 744,934 71,205 0 67,749 411,079 21 701Due from other funds 0 489 0 159,675 0 0 0Due from other governmental units 318,617 2,203,873 184 157,468 109,676 0 160,164Inventory 159,808 0 0 107,979 0 0 0

Total assets $1,291,356 $8,706,969 $4,156,113 $7,127,256 $1,563,371 $143,078 $1,630,321


Liabilities:Vouchers payable $12,592 $1,103,472 $455,345 $601,720 $8,248 $Contracts payable 0 60,650 0 49,666 0Salaries payable 0 21,653 0 218,841 0Due to other funds 654,523 13,040 0 0 0Due to other governmental units 2,065 187,294 599 31,088 4,831Other current liabilities 0 217,018 0 O 0

$18,0670

216,598307,700996,87791,079

00

00

00

0

Total liabilities 669,180 1,603,127 455,944 901,315 13,079 1,630,321

Fund balances:Reserved for encumbrances 0 2,102,067 76,417 355,683 4,622 0Reserved for inventory 159,808 0 0 107,979 0 0

Total fund balances 622,176 7,103,842 3,700,169 6,225,941 1,550,292 143,078

00

Unreserved - undesignated 462,368 5,001,775 3,623,752 5,762,279 1,545,670 143,078 001Total liabilities and fund balances $1,291,356 $8,706,969 $4,156,113 $7,127,256 $1,563,371 $143,078 $1,630,32

(Continued)

65


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2005

Assets

Cash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsInventory Total assets


Liabilities: Vouchers payable Contracts payable Salaries payable Due to other funds Due to other governmental units Other current liabilities Total liabilities

Fund balances: Reserved for encumbrances Reserved for inventory Unreserved - undesignated Total fund balances Total liabilities and fund balances

Special Revenue Funds Capital Project Funds

Community General Capital FederalSheriff's Redevelopment Trust Improvement Transit Road

Programs Agency Fund Program Administration Construction Totals

$2,954,202 $0 $0 $526,684 $0 $0 $8,005,4360 1,983,605 562,152 1,816,291 236,187 2,830,647 22,849,174

150,000 0 0 0 0 0 150,000103,607 0 263 0 0 0 1,399,559

0 0 0 0 0 0 160,1642,712,614 0 18,517 614,641 27,832 146,514 6,470,100

0 0 15,699 0 0 0 283,486$5,920,423 $1,983,605 $596,631 $2,957,616 $264,019 $2,977,161 $39,317,919

$118,535 $23,801 $8,796 $265,589 $1,412 $2,632 $2,620,209

0 0 0 613,652 5,464 33,141 762,573846,424 8,916 0 0 0 1,987 1,314,419

1,946,329 0 0 0 0 0 2,921,5920 0 41,680 0 0 0 1,264,434

609,444 0 45,452 0 0 0 962,9933,520,732 32,717 95,928 879,241 6,876 37,760 9,846,220

0 9,534 0 437,346 1,203 1,668,823 4,655,6950 0 15,699 0 0 0 283,486

2,399,691 1,941,354 485,004 1,641,029 255,940 1,270,578 24,532,5182,399,691 1,950,888 500,703 2,078,375 257,143 2,939,401 29,471,699

$5,920,423 $1,983,605 $596,631 $2,957,616 $264,019 $2,977,161 $39,317,919

66


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2005

Assets


Cash and cash equivalentsEquity in pooled cash and investmentsInvestmentsReceivables (net of allowance for uncolleotibles)Due from other fundsDue from other governmental unitsInventory

Total assets


Sheriff'sPrograms

$2,954,2020

150,000103,607

02,712,614

0

CommunityRedevelopment

Agency

$01,983,605

0

GeneralTrustFund

$0562,152

0263

018,51715,699

CapitalImprovement

Program

$526,6841,816,291

0O0

614,6410

FederalTransit

AdministrationRoad

Construction

$0236,187

0O0

27,8320

$02,830,647

0O0

146,5140

Totals

$8,005,43622,849,174

150,0001,399,559

160,1646,470,100

283,486

Liabilities:Vouchers payableContracts payableSalaries payableDue to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

Fund balances:Reserved for encumbrancesReserved for inventoryUnreserved - undesignated

Total fund balancesTotal liabilities and fund balances

$5,920,423

$118,5350

846,4241,946,329

0609,444

U'IO

OO

O

$1 ,983,60

$23,8010

8,916000

$596,631

$8,796

41,68045,452

$2,957,616

$265,589613,652

$264,019 $2,977,161

$2,63233,141

1,987OO0

$39,317,919

$2,620,209762,573

1,314,4192,921,5921,264,434

962,9933,520,732 32,717 95,928 37,760 9,846,220

O0

2,399,691

9,5340

1,941,354

015,699

485,004

437,3460

1,641,029

1,2030

255,940

1,668,8230

1,270,578

4,655,695283,486

24,532,5182,399,691 1,950,888 500,703 2,078,375 257,143 2,939,401 29,471,699

$5,920,423 $1,983,605 $596,631 $2,957,616 $264,019 $2,977,161 $39,317,919



COMBINING STATEMENT OF REVENUES, EXPENDITURES Special Revenue FundsAND CHANGES IN FUND BALANCES Bob Clerk's

Public Sikes Public Records Clerk'sYEAR ENDED SEPTEMBER 30, 2005 Mass Grant Tourist Safety Toll Modernization Court Sheriff's

Transit Projects Promotion Programs Facilities Trust Fund ProgramsRevenues: Taxes $0 $0 $4,135,528 $0 $0 $0 $0 $0 Intergovernmental 4,472,868 10,682,147 0 370,568 0 0 435,264 8,041,458 Charges for services 1,033,608 55,698 0 4,727,011 1,915,646 262,641 6,651,773 81,880 Fines and forfeitures 0 750 0 722,765 0 0 0 172,504 Investment income 14,078 153,048 127,098 220,446 47,466 11,957 182,947 7,003 Special assessments 0 0 0 10,435,535 0 0 0 0 Miscellaneous 89,267 545,109 0 77,859 100 0 39,417 656,943 Total revenues 5,609,821 11,436,752 4,262,626 16,554,184 1,963,212 274,598 7,309,401 8,959,788

Expenditures: Current: General government 0 191,343 0 1,033,772 693,269 585,203 7,309,401 0 Public safety 0 1,165,392 0 15,475,744 0 0 0 7,031,772 Physical environment 0 1,388,176 0 0 0 0 0 0 Transportation 6,856,156 162,709 0 0 0 0 0 0 Economic environment 0 5,710,260 2,879,638 0 0 0 0 0 Human services 0 1,040,120 0 77,404 0 0 0 0 Culture and recreation 0 315,757 793,916 0 0 0 0 0 Debt service Interest and fiscal charges 20,715 0 0 0 0 0 0 0 Total expenditures 6,876,871 9,973,757 3,673,554 16,586,920 693,269 585,203 7,309,401 7,031,772

Excess (deficiency) of revenue over (under) expenditures (1,267,050) 1,462,995 589,072 (32,736) 1,269,943 (310,605) 0 1,928,016

Other financing sources (uses): Insurance reimbursements 0 0 0 21,345 411,079 0 0 0 Transfers in 1,356,870 22,499 0 224,250 0 0 0 0 Transfers out 0 (260,000) (1,434,356) (1,528,853) (2,761,794) 0 0 0 Net other financing sources (uses) 1,356,870 (237,501) (1,434,356) (1,283,258) (2,350,715) 0 0 0

Net change in fund balance 89,820 1,225,494 (845,284) (1,315,994) (1,080,772) (310,605) 0 1,928,016

Fund balances at beginning of year 532,356 5,878,348 4,545,453 7,541,935 2,631,064 453,683 0 471,675Fund balances at end of year $622,176 $7,103,842 $3,700,169 $6,225,941 $1,550,292 $143,078 $0 $2,399,691

(Continued)

67



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES


Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt serviceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Insurance reimbursements

Transfers inTransfers out

Net other financing sources (uses)

Net change in fund balance

Fund balances at beginning of yearFund balances at end of year

Special Revenue Funds

MassTransit

$04,472,8681,033,608

014,078

089,267

5,609,821

000

6,856,156000

20,715

GrantPro'ects

$010,682,147

55,698750

153,0480

545,10911,436,752

191,3431,165,3921,388,176

162,7095,710,2601,040,120

315,757

0

TouristPromotion

$4,135,528000

127,09800

4,262,626

00

0

2,879,6380

793,916

0

PublicSafety

Programs

$0370,568

4,727,011722,765220,446

10,435,53577,859

16,554,184

1,033,77215,475,744

BobSikesToll

Facilities

$00

1,915,6460

47,4660

1001,963,212

693,269

OO

OO

OO

Clerk'sPublic RecordsModernization

M$0

0262,641

011,957

00

274,598

585,203

00

00

00

0

ClerksCounFund

$0435,264

6,651,7730

182,9470

39,4177,309,401

7,309,401

00

00

00

0

Sheriff'sPrograms

$08,041,458

81,880172,504

7,0030

656,9438,959,788

07,031,772

0

00

00

06,876,871

(1,267,050)

01,356,870

01,356,870

89,820

532,356$622,176

9,973,757

1,462,995

022,499

(260,000)(237,501)

1,225,494

5,878,348

$7,103,842

3,673,554

589,072

00

(1,434,355)(1,434,356)

(845,284)

4,545,453$3,700,169

67

16,586,920

(32,736)

21,345224,250

(1,528,853)(1,283,258)

(1,315,994)

7,541,935$6,225,941

693,269

1,269,943

411,0790

(2,761,794)(2,350,715)

(1,080,772)

2,631,064$1,550,292

585,203

(310,605)

00

00

(310,605)

453,683$143,078

7,309,401

00

00

$0

7,031,772

1,928,016

00

00

1,928,016

471,675$2,399,691(Continued)



COMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES(Continued)YEAR ENDED SEPTEMBER 30, 2005

Revenues: Taxes Intergovernmental Charges for services Fines and forfeitures Investment income Special assessments Miscellaneous Total revenues

Expenditures: Current: General government Public safety Physical environment Transportation Economic environment Human services Culture and recreation Debt service Interest and fiscal charges Total expenditures

Excess (deficiency) of revenue over (under) expenditures

Other financing sources (uses): Insurance reimbursements Transfers in Transfers out Net other financing sources (uses)




Community General Capital FederalRedevelopment Trust Improvement Transit Road

Agency Fund Fund Administration Construction Totals

$0 $0 $0 $0 $1,762,174 $5,897,7020 22,796 16,775 139,042 0 24,180,9180 151,565 0 0 0 14,879,8220 0 0 0 0 896,019

46,218 11,859 906,327 6,749 64,196 1,799,3920 0 0 0 0 10,435,535

1,841 97,614 0 0 0 1,508,15048,059 283,834 923,102 145,791 1,826,370 59,597,538

640,424 12,931 0 0 0 10,466,3430 0 0 0 0 23,672,9080 18,213 0 0 0 1,406,3890 0 2,659,127 139,042 500,797 10,317,8310 0 0 0 0 8,589,8980 0 0 0 0 1,117,5240 0 0 0 0 1,109,673

0 0 1,856 0 0 22,571640,424 31,144 2,660,983 139,042 500,797 56,703,137

(592,365) 252,690 (1,737,881) 6,749 1,325,573 2,894,401

0 0 0 0 0 432,4241,636,065 16,489 1,247,399 0 234 4,503,806

0 0 (22,783,031) 0 (84,202) (28,852,236)1,636,065 16,489 (21,535,632) 0 (83,968) (23,916,006)

1,043,700 269,179 (23,273,513) 6,749 1,241,605 (21,021,605)

907,188 231,524 25,351,888 250,394 1,697,796 50,493,304$1,950,888 $500,703 $2,078,375 $257,143 $2,939,401 $29,471,699

68



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES(Continued)YEAR ENDED SEPTEMBER 30, 2005

Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt serviceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Insurance reimbursements

Transfers inTransfers out

Net other financing sources (uses)




CommunityRedevelopment

Agency

$0000

46,218

1,841

GeneralTrustFund

$022,796

151,5650

11,8590

97,614

CapitalImprovement

Fund

$016,775

00

906,32700

FederalTransit

Administration

$0139,042

RoadConstruction

$1,762,174

Totals

$5,897,70224,180,91814,879,822

896,0191,799,392

10,435,5351,508,150

48,059 283,834 923,102 145,791 1,826,370 59,597,538

640,424

00

00

00

0

12,931

18,213

CO

D

000

2,659,127000

1,856

000

139,042000

0

000

500,797000

0

10,466,34323,672,908

1,406,38910,317,8318,589,8981,117,5241,109,673

22,571640,424 31,144 2,660,983 139,042 500,797 56,703,137

(592,365) 252,690 (1,737,881) 6,749 1,325,573 2,894,401

01,636,065

0

016,489

0

01,247,399

(22,783,031)

0234

(84,202)

432,4244,503,806

(28,852,236)1,636,065 16,489 (21,535,632) 0

00

0

(83,968) (23,916,006)

1,043,700 269,179 (23,273,513) 6,749 1,241,605 (21,021,605)

907,188 231,524 25,351,888 250,394 1,697,796 50,493,304$1,950,888 $500,703 $2,078,375

68

$257,143 $2,939,401 $29,471,699


MASS TRANSITSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $4,885,794 $4,688,788 $4,472,868 ($215,920) Charges for services 2,008,009 1,189,277 1,033,608 (155,669) Investment income 5,000 5,000 14,078 9,078 Miscellaneous 3,780 32,688 89,267 56,579 Total revenues 6,902,583 5,915,753 5,609,821 (305,932)

Expenditures: Current: Transportation 8,107,235 7,471,706 6,856,156 615,550 Interest and fiscal charges 0 50,000 20,715 29,285 Total expenditures 8,107,235 7,521,706 6,876,871 644,835

Excess (deficiency) of revenue over (under) expenditures (1,204,652) (1,605,953) (1,267,050) 338,903

Other financing sources (uses): Transfers in 1,379,391 1,356,870 1,356,870 0 Total other financing sources (uses) 1,379,391 1,356,870 1,356,870 0

Net change in fund balances 174,739 (249,083) 89,820 338,903

Fund balances at beginning of year (174,739) 249,083 532,356 283,273Fund balances (deficit) at end of year $0 $0 $622,176 $622,176

69


MASS TRANSITSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL



Revenues:Intergovernmental $4,885,794 $4,688,788 $4,472,868 ($215,920)Charges for services 2,008,009 1,189,277 1,033,608 (155,669)Investment income 5,000 5,000 14,078 9,078Miscellaneous 3,780 32,688 89,267 56,579

Total revenues 6,902,583 5,915,753 5,609,821 (305,932)

Expenditures:Current:Transportation 8,107,235 7,471,706 6,856,156 615,550Interest and fiscal charges 0 50,000 20,715 29,285Total expenditures 8,107,235 7,521,706 6,876,871 644,835

Excess (deficiency) of revenue over (under)expenditures (1,204,652) (1,605,953) (1,267,050) 338,903

Other financing sources (uses):Transfers in 1,379,391 1,356,870 1,356,870 0

Total other financing sources (uses) 1,379,391 1,356,870 1,356,870 0

Net change in fund balances 174,739 (249,083) 89,820 338,903

Fund balances at beginning of year (174,739) 249,083 532,356 283,273Fund balances (deficit) at end of year $0 $0 $622,176 $622,176

69


GRANT PROJECTSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $15,264,995 $66,934,398 $10,682,147 ($56,252,251) Charges for services 0 0 55,698 55,698 Fines and forfeitures 0 0 750 750 Investment income 18,000 18,250 153,048 134,798 Miscellaneous 50,000 51,500 545,109 493,609 Total revenues 15,332,995 67,004,148 11,436,752 (55,567,396)

Expenditures: Current: General government 304,536 333,680 191,343 142,337 Public safety 210,000 2,097,941 1,165,392 932,549 Physical environment 0 12,214,356 1,388,176 10,826,180 Transportation 0 210,000 162,709 47,291 Economic environment 14,509,892 50,338,322 5,710,260 44,628,062 Human services 939,003 2,082,986 1,040,120 1,042,866 Culture and recreation 100,000 710,845 315,757 395,088 Total expenditures 16,063,431 67,988,130 9,973,757 58,014,373

Excess (deficiency) of revenue over (under) expenditures (730,436) (983,982) 1,462,995 2,446,977

Other financing sources (uses): Transfers in 22,000 44,499 22,499 (22,000) Transfers out (140,000) (260,000) (260,000) 0 Total other financing sources (uses) (118,000) (215,501) (237,501) (22,000)

Net change in fund balances (848,436) (1,199,483) 1,225,494 2,424,977

Fund balances at beginning of year 848,436 1,199,483 5,878,348 4,678,865Fund balances (deficit) at end of year $0 $0 $7,103,842 $7,103,842

70


GRANT PROJECTSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesFines and forfeituresInvestment incomeMiscellaneous

Total revenues



Total expenditures


Other financing sources (uses):Transfers inTransfers out




OriginalBudget

FinalBudget


PositiveActual (Negative)

$15,264,995O0

18,00050,000

$66,934,39800

18,25051,500

$10,682,147 ($56,252,251)55,698 55,698

750 750153,048 134,798545,109 493,609

15,332,995 67,004,148 11,436,752 (55,567,396)

304,536210,000

00

14,509,892939,003100,000

333,6802,097,941

12,214,356210,000

50,338,3222,082,986

710,845

191,343 142,3371,165,392 932,5491,388,176 10,826,180

162,709 47,2915,710,260 44,628,0621,040,120 1,042,866

315,757 395,08816,063,431 67,988,130 9,973,757 58,014,373

(730,436) (983,982) 1,462,995 2,446,977

22,000(140,000)

44,499(260,000)

22,499 (22,000)(260,000) 0

(118,000) (215,501) (237,501) (22,000)

(848,436) (1 ,199,483) 1,225,494 2,424,977

848,436 1,199,483 5,878,348 4,678,865$0 $0

70

$7,103,842 $7,103,842


TOURIST PROMOTION FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $4,633,334 $4,633,334 $4,135,528 ($497,806) Investment income 0 0 127,098 127,098 Total revenues 4,633,334 4,633,334 4,262,626 (370,708)

Expenditures: Current: Economic environment 3,747,874 5,260,243 2,879,638 2,380,605 Culture and recreation 0 1,355,636 793,916 561,720 Total expenditures 3,747,874 6,615,879 3,673,554 2,942,325

Excess (deficiency) of revenue over (under) expenditures 885,460 (1,982,545) 589,072 2,571,617

Other financing sources (uses): Transfers out (1,839,936) (1,839,936) (1,434,356) 405,580 Total other financing sources (uses) (1,839,936) (1,839,936) (1,434,356) 405,580

Net change in fund balances (954,476) (3,822,481) (845,284) 2,977,197

Fund balances at beginning of year 954,476 3,822,481 4,545,453 722,972Fund balances (deficit) at end of year $0 $0 $3,700,169 $3,700,169

71


TOURIST PROMOTION FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:TaxesInvestment income

Total revenues


Economic environmentCulture and recreation

Total expenditures


Other financing sources (uses):Transfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$4,633,3340

$4,633,3340

$4,135,528127,098

($497,806)127,098

4,633,334 4,633,334 4,262,626 (370,708)

3,747,8740

5,260,2431,355,636

2,879,638793,916

2,380,605561,720

3,747,874 6,615,879 3,673,554 2,942,325

885,460 (1,982,545) 589,072 2,571,617

(1,839,936) (1,839,936) (1,434,356) 405,580(1,839,936) (1,839,936) (1,434,356) 405,580

(954,476) (3,822,481) (845,284) 2,977,197

954,476 3,822,481 4,545,453 722,972$0 $0

71

$3,700,169 $3,700,169


PUBLIC SAFETY PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $263,000 $263,000 $370,568 $107,568 Charges for services 4,655,700 4,734,707 4,727,011 (7,696) Fines and forfeitures 1,000 674,000 722,765 48,765 Investment income 78,600 79,105 220,446 141,341 Special assessments 10,539,904 10,539,904 10,435,535 (104,369) Miscellaneous 68,500 4,000 77,859 73,859 Total revenues 15,606,704 16,294,716 16,554,184 259,468

Expenditures: Current: General government 1,758,861 1,815,361 1,033,772 781,589 Public safety 13,324,932 19,659,393 15,475,744 4,183,649 Human services 176,975 176,975 77,404 99,571 Total expenditures 15,260,768 21,651,729 16,586,920 5,064,809

Excess (deficiency) of revenue over (under) expenditures 345,936 (5,357,013) (32,736) 5,324,277

Other financing sources (uses): Insurance reimbursements 0 0 21,345 21,345 Transfers in 179,325 224,250 224,250 0 Transfers out (1,426,634) (1,527,613) (1,528,853) (1,240) Total other financing sources (uses) (1,247,309) (1,303,363) (1,283,258) 20,105

Net change in fund balances (901,373) (6,660,376) (1,315,994) 5,344,382

Fund balances at beginning of year 901,373 6,660,376 7,541,935 881,559Fund balances (deficit) at end of year $0 $0 $6,225,941 $6,225,941

72


PUBLIC SAFETY PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues


General governmentPublic safetyHuman servicesTotal expenditures


Other financing sources (uses):Insurance reimbursementsTransfers inTransfers out




OriginalBudget

$263,0004,655,700

1,00078,600

10,539,90468,500

15,606,704

1,758,86113,324,932

176,97515,260,768

345,936

0179,325

(1,426,634)(1,247,309)

(901,373)

901,373$0

FinalBudget

$263,0004,734,707

674,00079,105

10,539,9044,000

16,294,716

1,815,36119,659,393

176,97521,651,729

(5,357,013)

0224,250

(1,527,613)(1,303,363)

(6,660,376)

6,660,376$0

72

Actual

$370,5684,727,011

722,765220,446

10,435,53577,859

16,554,184

1,033,77215,475,744

77,40416,586,920

(32,736)

21 ,345224,250

(1,528,853)(1,283,258)

(1,315,994)

7,541,935$6,225,941


Positive(Negative)

$107,568(7,696)48,765

141,341(104,369)

73,859259,468

781,5894,183,649

99,5715,064,809

5,324,277

21,3450

(1,240)20,105

5,344,382

881,559$6,225,941


BOB SIKES TOLL FACILITIESSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $2,847,195 $2,347,195 $1,915,646 ($431,549) Investment income 15,000 15,000 47,466 32,466 Miscellaneous 0 0 100 100 Total revenues 2,862,195 2,362,195 1,963,212 (398,983)

Expenditures: Current: General government 1,119,550 1,859,584 693,269 1,166,315 Total expenditures 1,119,550 1,859,584 693,269 1,166,315

Excess (deficiency) of revenue over (under) expenditures 1,742,645 502,611 1,269,943 767,332

Other financing sources (uses): Insurance reimbursement 0 0 411,079 411,079 Transfers out (2,991,315) (2,991,315) (2,761,794) 229,521 Total other financing sources (uses) (2,991,315) (2,991,315) (2,350,715) 640,600

Net change in fund balances (1,248,670) (2,488,704) (1,080,772) 1,407,932

Fund balances at beginning of year 1,248,670 2,488,704 2,631,064 142,360Fund balances (deficit) at end of year $0 $0 $1,550,292 $1,550,292

73


BOB SIKES TOLL FACILITIESSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:Charges for servicesInvestment incomeMiscellaneous

Total revenues


General governmentTotal expenditures


Other financing sources (uses):Insurance reimbursementTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$2,847,19515,000

0

$2,347,195 $1,915,64615,000 47,466

0 100

($431,549)32,466

1002,862,195 2,362,195 1,963,212 (398,983)

1,119,550 1,859,584 693,269 1,166,3151,119,550 1,859,584 693,269 1,166,315

1,742,645 502,611 1,269,943 767,332

0(2,991,315)

0 411,079(2,991,315) (2,761,794)

411,079229,521

(2,991,315) (2,991,315) (2,350,715) 640,600

(1,248,670) (2,488,704) (1,030,772) 1,407,932

1,248,670 2,488,704 2,631,064 142,360$0 $0 $1,550,292

73

$1,550,292


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $255,000 $262,641 $262,641 $0 Investment income 5,000 11,957 11,957 0 Total revenues 260,000 274,598 274,598 0

Expenditures: Current: General government 260,000 585,206 585,203 3 Total expenditures 260,000 585,206 585,203 3

Excess (deficiency) of revenue over (under) expenditures 0 (310,608) (310,605) 3

Net change in fund balances 0 (310,608) (310,605) 3

Fund balances at beginning of year 0 310,608 453,683 143,075Fund balances (deficit) at end of year $0 $0 $143,078 $143,078

74


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:Charges for servicesInvestment income

Total revenues






OriginalBudget

FinalBudget Actual


Positive(Negative)

$255,0005,000

$262,64111,957

$262,64111,957

$00

260,000 274,598 274,598 0

260,000 585,206 585,203260,000 585,206 585,203

(310,608) (310,605) 3

(310,608) (310,605) 3

310,608 453,683 143,075$0

74

$143,078 $143,078


CLERK'S COURT FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $5,604,502 $5,070,037 435,264$ (4,634,773)$ Charges for services 1,629,000 2,031,651 6,651,773 $4,620,122 Fines and forfeitures 0 0 0 0 Investment income 47,578 169,550 182,947 13,397 Miscellaneous 28,520 38,362 39,417 1,055 Total revenues 7,309,600 7,309,600 7,309,401 (199)

Expenditures: Current: General government 7,309,600 7,309,600 7,309,401 199 Interest and fiscal charges 7,309,600 7,309,600 7,309,401 199 Total expenditures

Net change in fund balances 0 0 0 0

Fund balances at beginning of year 0 0 0 0Fund balances (deficit) at end of year $0 $0 $0 $0

75


CLERK'S COURT FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL



Total revenues


General governmentInterest and fiscal chargesTotal expenditures



OriginalBudget

$5,604,5021,629,000

047,57828,520

FinalBudget

$5,070,0372,031,651

0169,55038,362

Actual

$ 435,2646,651,773

0182,94739,417


Positive(Negative)

:3 (4,634,773)$4,620,122

013,397

1,0557,309,600 7,309,600 7,309,401 (199)

7,309,600 7,309,600 7,309,401 1997,309,600 7,309,600 7,309,401 199

75


SHERIFF'S PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $7,670,919 $8,041,458 $370,539 Charges for services 0 151,465 81,880 (69,585) Fines and forfeitures 0 599,047 172,504 (426,543) Investment income 0 7,003 7,003 0 Miscellaneous 0 656,995 656,943 (52) Total revenues 0 9,085,429 8,959,788 (125,641)

Expenditures: Current: Public safety 0 9,361,045 7,031,772 2,329,273 Total expenditures 0 9,361,045 7,031,772 2,329,273

Net change in fund balances 0 (275,616) 1,928,016 2,203,632

Fund balances at beginning of year 0 471,675 471,675 0Fund balances (deficit) at end of year $0 $196,059 $2,399,691 $2,203,632

76


SHERIFF'S PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL



Total revenues


Public safetyTotal expenditures



OriginalBudget

FinalBudget Actual


Positive(Negative)

35 $7,670,919151,465599,047

7,003656,995

$8,041,45881,880

172,5047,003

656,943

$370,539(69,585)

(426,543)0

(52)

OO

OO

OO

9,085,429 8,959,788 (125,641)

9,361,045 7,031,772 2,329,2739,361,045 7,031,772 2,329,273

(275,616) 1,928,016 2,203,632

471,675 471,675 0$196,059

76

$2,399,691 $2,203,632


COMMUNITY REDEVELOPMENT AGENCYSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Investment income $0 $0 $46,218 $46,218 Miscellaneous 0 1,300 1,841 541 Total revenues 0 1,300 48,059 46,759

Expenditures: Current: General government 1,166,967 2,574,709 640,424 1,934,285 Total expenditures 1,166,967 2,574,709 640,424 1,934,285

Excess (deficiency) of revenue over (under) expenditures (1,166,967) (2,573,409) (592,365) 1,981,044

Other financing sources (uses): Transfers in 1,111,578 1,636,065 1,636,065 0 Total other financing sources (uses) 1,111,578 1,636,065 1,636,065 0

Net change in fund balances (55,389) (937,344) 1,043,700 1,981,044

Fund balances at beginning of year 55,389 937,344 907,188 (30,156)Fund balances (deficit) at end of year $0 $0 $1,950,888 $1,950,888

77


COMMUNITY REDEVELOPMENT AGENCYSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:Investment incomeMiscellaneous

Total revenues




Other financing sources (uses):Transfers in




OriginalBudget

FinalBudget Actual


Positive(Negative)

$00

$01,300

$46,2181,841

$46,218541

0 1,300 48,059 46,759

1,166,967 2,574,709 640,424 1,934,2851,166,967 2,574,709 640,424 1,934,285

(1 ,166,967) (2,573,409) (592,365) 1,981,044

1,111,578 1,636,065 1,636,065 01,111,578 1,636,065 1,636,065 0

(55,389) (937,344) 1,043,700 1,981,044

55,389 937,344 907,188 (30,156)$0 $0 $1,950,888

77

$1,950,888


GENERAL TRUST FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $0 $22,796 $22,796 Charges for services 0 0 151,565 151,565 Investment income 0 0 11,859 11,859 Miscellaneous 20,540 23,315 97,614 74,299 Total revenues 20,540 23,315 283,834 260,519

Expenditures: Current: General government 20,540 30,993 12,931 18,062 Public safety 0 6,831 0 6,831 Physical environment 0 148,504 18,213 130,291 Human services 0 77,339 0 77,339 Culture and recreation 0 1,980 0 1,980 Total expenditures 20,540 265,647 31,144 234,503

Excess (deficiency) of revenue over (under) expenditures 0 (242,332) 252,690 495,022

Other financing sources (uses): Transfers in 0 16,489 16,489 0 Total other financing sources (uses) 0 16,489 16,489 0

Net change in fund balances 0 (225,843) 269,179 495,022

Fund balances at beginning of year 0 225,843 231,524 5,681Fund balances (deficit) at end of year $0 $0 $500,703 $500,703

78


GENERAL TRUST FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesInvestment incomeMiscellaneous

Total revenues


General governmentPublic safetyPhysical environmentHuman servicesCulture and recreation

Total expenditures






OriginalBudget

FinalBudget Actual


Positive(Negative)

$000

20,540

$0

23,315

$22,796151,565

11,85997,614

$22,796151,565

11,85974,299

20,540 23,315 283,834 260,519

30,9936,831

148,50477,339

1,980

12,9310

18,21300

18,0626,831

130,29177,339

1,980265,647 31,144 234,503

(242,332) 252,690 495,022

16,489 16,489 016,489 16,489 0

(225,843) 269,179 495,022

225,843 231,524 5,681$0

78

$500,703 $500,703


DEBT SERVICE FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $600,000 $600,000 $600,000 $0 Investment income 36,500 36,500 267,611 231,111 Total revenues 636,500 636,500 867,611 231,111

Expenditures: Current: Debt service Principal retirement 10,794,203 12,504,203 12,504,202 1 Interest and fiscal charges 7,458,383 7,480,677 7,215,385 265,292 Total expenditures 18,252,586 19,984,880 19,719,587 265,293

Excess (deficiency) of revenue over (under) expenditures (17,616,086) (19,348,380) (18,851,976) 496,404

Other financing sources (uses): Transfers in 19,605,018 19,633,018 19,097,173 (535,845) Total other financing sources (uses) 19,605,018 19,633,018 19,097,173 (535,845)

Net change in fund balances 1,988,932 284,638 245,197 (39,441)

Fund balances at beginning of year (1,988,932) (284,638) 8,518,034 8,802,672Fund balances (deficit) at end of year $0 $0 $8,763,231 $8,763,231

79


DEBT SERVICE FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL



Revenues:Intergovernmental $600,000 $600,000 $600,000 $0Investment income 36,500 36,500 267,611 231,111

Total revenues 636,500 636,500 867,611 231,111

Expenditures:Current:Debt service

Principal retirement 10,794,203 12,504,203 12,504,202 1Interest and fiscal charges 7,458,383 7,480,677 7,215,385 265,292Total expenditures 18,252,586 19,984,880 19,719,587 265,293

Excess (deficiency) of revenue over (under)expenditures (17,616,086) (19,348,380) (18,851,976) 496,404

Other financing sources (uses):Transfers in 19,605,018 19,633,018 19,097,173 (535,845)

Total other financing sources (uses) 19,605,018 19,633,018 19,097,173 (535,845)

Net change in fund balances 1,988,932 284,638 245,197 (39,441)

Fund balances at beginning of year (1 ,988,932) (284,638) 8,518,034 8,802,672Fund balances (deficit) at end of year $0 $0 $8,763,231 $8,763,231

79


CAPITAL IMPROVEMENT PROGRAMSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $0 $16,775 $16,775 Investment income 0 0 906,327 906,327 Total revenues 0 0 923,102 923,102

Expenditures: Capital improvements 2,851,000 5,849,962 2,659,127 3,190,835 Debt service Principal retirement 490,609 490,609 0 490,609 Interest and fiscal charges 90,547 86,366 1,856 84,510 Total expenditures 3,432,156 6,426,937 2,660,983 3,765,954

Excess (deficiency) of revenue over (under) expenditures (3,432,156) (6,426,937) (1,737,881) 4,689,056

Other financing sources (uses): Bond(s) issued 2,500,000 2,500,000 0 (2,500,000) Transfers in 1,247,399 1,247,399 1,247,399 0 Transfers out (9,170,154) (22,783,031) (22,783,031) 0 Total other financing sources (uses) (5,422,755) (19,035,632) (21,535,632) (2,500,000)

Net change in fund balances (8,854,911) (25,462,569) (23,273,513) 2,189,056

Fund balances at beginning of year 8,854,911 25,462,569 25,351,888 (110,681)Fund balances (deficit) at end of year $0 $0 $2,078,375 $2,078,375

80


CAPITAL IMPROVEMENT PROGRAMSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment income

Total revenues

Expenditures:Capital improvementsDebt service



Other financing sources (uses):Bond(s) issuedTransfers inTransfers out




OriginalBudget

$000

2,851,000

490,60990,547

3,432,156

(3,432,156)

2,500,0001,247,399

(9,170,154)(5,422,755)

(8,854,911)

8,854,911$0

5,849,962

490,60986,366

6,426,937

(6,426,937)

2,500,0001,247,399

(22,783,031)(19,035,632)

(25,462,569)

25,462,569$0

80

Actual

$16,775906,327923,102

2,659,127

01,856

2,660,983

(1,737,881)

01,247,399

(22,783,031)(21,535,632)

(23,273,513)

25,351,888$2,078,375


Positive(Negative)

$16,775906,327923,102

3,190,835

490,60984,510

3,765,954

4,689,056

(2,500,000)00

(2,500,000)

2,189,056

(110,681)$2,078,375


FEDERAL TRANSIT ADMINISTRATIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $529,179 $2,297,796 $139,042 ($2,158,754) Investment income 0 0 6,749 6,749 Total revenues 529,179 2,297,796 145,791 (2,152,005)

Expenditures: Capital improvements 529,179 2,297,796 139,042 2,158,754 Total expenditures 529,179 2,297,796 139,042 2,158,754

Excess (deficiency) of revenue over (under) expenditures 0 0 6,749 6,749

Fund balances at beginning of year 0 0 250,394 250,394Fund balances (deficit) at end of year $0 $0 $257,143 $257,143

81


FEDERAL TRANSIT ADMINISTRATIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment income

Total revenues

Expenditures:Capital improvements

Total expenditures



OriginalBudget

FinalBudget Actual


Positive(Negative)

$529,1790

$2,297,7960

$139,0426,749

($2,158,754)6,749

529,179 2,297,796 145,791 (2,152,005)

529,179 2,297,796 139,042 2,158,754529,179 2,297,796 139,042 2,158,754

6,749 6,749

250,394 250,394

81

$257,143 $257,143


ROAD CONSTRUCTIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $1,644,695 $1,644,695 $1,762,174 $117,479 Investment income 50,000 50,000 64,196 14,196 Total revenues 1,694,695 1,694,695 1,826,370 131,675

Expenditures: Capital improvements 1,525,710 3,307,758 500,797 2,806,961 Total expenditures 1,525,710 3,307,758 500,797 2,806,961

Excess (deficiency) of revenue over (under) expenditures 168,985 (1,613,063) 1,325,573 2,938,636

Other financing sources (uses): Transfers in 0 234 234 0 Transfers out (84,250) (234) (84,202) (83,968) Total other financing sources (uses) (84,250) 0 (83,968) (83,968)


Fund balances at beginning of year (84,735) 1,613,063 1,697,796 84,733Fund balances (deficit) at end of year $0 $0 $2,939,401 $2,939,401

82


ROAD CONSTRUCTIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:TaxesInvestment income

Total revenues

Expenditures:Capital improvements

Total expenditures


Other financing sources (uses):Transfers inTransfers out




OriginalBudget

$1,644,69550,000

1,694,695

1,525,7101,525,710

168,985

0(84,250)(84,250)

84,735

(84,735)$0

FinalBudget

$1,644,69550,000

1 ,694,695

3,307,7583,307,758

(1,613,063)

234(234)

0

(1,613,063)

1,613,063$0

Actual

$1,762,17464,196

1,826,370

500,797500,797

1,325,573

234(84,202)(83,968)

1,241,605

1,697,796$2,939,401

82


Positive(Negative)

$117,47914,196

131,675

2,806,9612,806,961

2,938,636

0(83,968)(83,968)

2,854,668

84,733$2,939,401


LOCAL OPTION SALES TAXSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $29,823,154 $29,823,154 $38,671,111 $8,847,957 Intergovernmental 0 0 612,375 612,375 Investment income 312,677 312,677 1,766,544 1,453,867 Miscellaneous 3,000,000 3,935,262 250,153 (3,685,109) Total revenues 33,135,831 34,071,093 41,300,183 7,229,090

Expenditures: Capital improvements 31,665,439 91,581,487 28,907,344 62,674,143 Debt service Principal retirement 313,422 1,170,959 0 1,170,959 Interest and fiscal charges 70,258 70,258 29,274 40,984 Total expenditures 32,049,119 92,822,704 28,936,618 63,886,086

Excess (deficiency) of revenue over (under) expenditures 1,086,712 (58,751,611) 12,363,565 71,115,176

Other financing sources (uses): Transfers in 8,854,911 22,540,284 22,540,284 0 Transfers out (8,995,465) (8,995,465) (8,847,069) 148,396 Total other financing sources (uses) (140,554) 13,544,819 13,693,215 148,396


Fund balances at beginning of year (946,158) 45,206,792 46,020,303 813,511Fund balances (deficit) at end of year $0 $0 $72,077,083 $72,077,083

83


LOCAL OPTION SALES TAXSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES .BUDGET TO ACTUAL


Revenues:TaxesIntergovernmentalInvestment incomeMiscellaneous

Total revenues

Expenditures:Capital improvementsDebt service




Transfers outTotal other financing sources (uses)



OriginalBudget

FinalBudget Actual


Positive(Negative)

$29,823,1540

312,6773,000,000

$29,823,1540

312,6773,935,262

$38,671,111612,375

1,766,544250,153

$8,847,957612,375

1,453,867(3,685,109)

33,135,831 34,071,093 41,300,183 7,229,090

31,665,439

313,42270,258

91,581,487

1,170,95970,258

28,907,344

029,274

62,674,143

1,170,95940,984

32,049,119 92,822,704 28,936,618 63,886,086

1,086,712 (58,751,611) 12,363,565 71,115,176

8,854,911(8,995,465)

22,540,284(8,995,465)

22,540,284(8,847,069)

0148,396

(140,554) 13,544,819 13,693,215 148,396

946,158 (45,206,792) 26,056,780 71,263,572

(946,158) 45,206,792 46,020,303 813,511$0 $0

83

$72,077,083 $72,077,083

NON-MAJOR ENTERPRISE FUNDS Inspection Fund - to account for building inspection services provided to the residents of Escambia County. All activities necessary to provide such services are accounted for in this fund. Ambulance Fund - to account for the cost of emergency medical services provided in Escambia County. All activities necessary to provide such services are accounted for in this fund.

NON-MAJOR ENTERPRISE FUNDS

Inspection Fund - to account for building inspection services provided to the residents of Escambia County.All activities necessary to provide such services are accounted for in this fund.

Ambulance Fund - to account for the cost of emergency medical services provided in Escambia County. Allactivities necessary to provide such services are accounted for in this fund.


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2005

ASSETS Inspection Ambulance TotalsCurrent assets: Cash and cash equivalents $900 $150 $1,050 Equity in pooled cash and investments 6,034,850 2,133,846 8,168,696 Receivables (net of allowance for uncollectibles) 950 3,185,013 3,185,963 Due from other governmental units 0 9,500 9,500 Inventory 0 188,924 188,924 Restricted cash and cash equivalents 272,146 0 272,146 Total current assets 6,308,846 5,517,433 11,826,279

Noncurrent assets: Capital assets: Land and other non-depreciable assets 0 6,443 6,443 Capital assets (net of depreciation) 348,794 1,818,727 2,167,521 Total noncurrent assets 348,794 1,825,170 2,173,964 Total assets 6,657,640 7,342,603 14,000,243

LIABILITIESCurrent liabilities: Vouchers payable 58,984 85,670 144,654 Salaries and benefits payable 81,246 176,082 257,328 Due to other governmental units 1,500 6,268 7,768 Payable from restricted assets 272,146 0 272,146 Other current liabilities 40,493 0 40,493 Total current liabilities 454,369 268,020 722,389

Non-current liabilities: Compensated absences 430,391 550,517 980,908 Total non-current liabilities 430,391 550,517 980,908 Total liabilities 884,760 818,537 1,703,297

NET ASSETSInvested in capital assets, net of related debt 348,794 1,825,170 2,173,964Unrestricted 5,424,086 4,698,896 10,122,982 Total net assets $5,772,880 $6,524,066 $12,296,946

84


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2005


Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)Due from other governmental unitsInventoryRestricted cash and cash equivalents


Noncurrent assets:Capital assets:

Land and other non-depreciable assetsCapital assets (net of depreciation)Total noncurrent assets

Total assets

LIABILITIESCurrent liabilities:Vouchers payableSalaries and benefits payableDue to other governmental unitsPayable from restricted assetsOther current liabilities


Non-current liabilities:Compensated absencesTotal non-current liabilities

Total liabilities


Total net assets

Inspection

$9006,034,850

95000

272,146

Ambulance

$1502,133,8463,185,013

9,500188,924

0

Totals

$1,0508,168,6963,185,963

9,500188,924272,146

6,308,846 5,517,433 11,826,279

0348,794

6,4431,818,727

6,4432,167,521

348,794 1,825,170 2,173,9646,657,640 7,342,603 14,000,243

58,98481,246

1,500272,14640,493

85,670176,082

6,26800

144,654257,328

7,768272,14640,493

454,369 268,020 722,389

430,391 550,517 980,908430,391 550,517 980,908884,760 818,537 1,703,297

348,7945,424,086

1,825,1704,698,896

2,173,96410,122,982

$5,772,880

84

$6,524,066 $12,296,946


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

YEAR ENDED SEPTEMBER 30, 2005 Inspection Ambulance Totals

Operating revenues: Licenses and permits $7,183,005 $0 $7,183,005 Charges for services 6,196 12,276,343 12,282,539 Fines and forfeitures 27,115 0 27,115 Miscellaneous income 59,075 91,742 150,817 Total operating revenues 7,275,391 12,368,085 19,643,476

Operating expenses: Personal services 2,516,650 5,890,652 8,407,302 Contractual services 121,102 356,193 477,295 Materials and supplies 98,232 504,100 602,332 Travel and vehicle costs 66,573 8,716 75,289 Depreciation 71,124 737,398 808,522 Bad debts 1,888 4,499,079 4,500,967 Memberships, dues and subscriptions 13,440 21,547 34,987 Insurance and bonds 9,113 93,931 103,044 Communications and freight services 48,293 82,813 131,106 Utilities 25,403 395 25,798 Maintenance 24,370 379,413 403,783 Rentals and leases 153,484 12,909 166,393 Advertising and promotion 495 791 1,286 Miscellaneous 203,933 423,276 627,209 Total operating expenses 3,354,100 13,011,213 16,365,313 Operating income (loss) 3,921,291 (643,128) 3,278,163

Non-operating revenues (expenses): Interest income 86,443 52,381 138,824 Gain (loss) on disposal of assets 0 (16,059) (16,059) Other income 0 337 337 Total non-operating revenues (expenses) 86,443 36,659 123,102

Income (loss) before contributions and transfers 4,007,734 (606,469) 3,401,265

Capital contributions 0 48,010 48,010Transfers out 0 (159,650) (159,650) Total other financing sources (uses) 0 (111,640) (111,640)

Change in net assets 4,007,734 (718,109) 3,289,625

Net assets - beginning 1,765,146 7,242,175 9,007,321Net assets - ending $5,772,880 $6,524,066 $12,296,946

85


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS


Operating revenues:Licenses and permitsCharges for servicesFines and forfeituresMiscellaneous income


Operating expenses:Personal servicesContractual servicesMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesAdvertising and promotionMiscellaneous


Non-operating revenues (expenses):Interest incomeGain (loss) on disposal of assetsOther income



Capital contributionsTransfers out



Net assets - beginningNet assets - ending

Inspection

$7,183,0056,196

27,11559,075

Ambulance

$012,276,343

091,742

Totals

$7,183,00512,282,539

27,115150,817

7,275,391 12,368,085 19,643,476

2,516,650121,10298,23266,57371,124

1,88813,4409,113

48,29325,40324,370

153,484495

203,933

5,890,652356,193504,100

8,716737,398

4,499,07921,54793,93182,813

395379,413

12,909791

423,276

8,407,302477,295602,332

75,289808,522

4,500,96734,987

103,044131,10625,798

403,783166,393

1,286627,209

3,354,100 13,011,213 16,365,3133,921,291 (643,128) 3,278,163

86,44300

52,381(16,059)

337

138,824(16,059)

33786,443 36,659 123,102

4,007,734 (606,469) 3,401,265

0

48,010(159,650)

48,010(159,650)

(111,640) (111,640)

4,007,734 (718,109) 3,289,625

1,765,146 7,242,175 9,007,321

85

$5,772,880 $6,524,066 $12,296,946


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

YEAR ENDED SEPTEMBER 30, 2005Inspection Ambulance Totals

Cash flows from operating activities: Cash received from customers $7,407,204 $11,828,416 $19,235,620 Cash payments to suppliers for goods and services (741,511) (6,385,238) (7,126,749) Cash payments to employees for services (2,530,042) (5,720,889) (8,250,931) Other non-operating revenues (expenses) 0 92,079 92,079 Net cash provided by (used in) operating activities 4,135,651 (185,632) 3,950,019

Cash flows from noncapital financing activities: Transfers out 0 (159,650) (159,650) Net cash provided by (used in) noncapital financing activities 0 (159,650) (159,650)

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (241,018) (43,491) (284,509) Proceeds from sale of assets 0 1,050 1,050 Net cash used in capital and related financing activities (241,018) (42,441) (283,459)

Cash flow from investing activities: Interest on investments 86,443 52,381 138,824 Net cash provided by investing activities 86,443 52,381 138,824

Net increase (decrease) in cash & cash equivalents 3,981,076 (335,342) 3,645,734

Cash and cash equivalents at beginning of year 2,326,820 2,469,338 4,796,158Cash and cash equivalents at end of year $6,307,896 $2,133,996 $8,441,892

Non-cash investing, capital and financing activities: Capital contributions $0 $48,010 $48,010

(Continued)

86



YEAR ENDED SEPTEMBER 30, 2005Inspection Ambulance M

Cash flows from operating activities:Cash received from customers $7,407,204 $11,828,416 $19,235,620Cash payments to suppliers for goods and services (741,511) (6,385,238) (7,126,749)Cash payments to employees for services (2,530,042) (5,720,889) (8,250,931)Other non-operating revenues (expenses) 0 92,079 92,079

Net cash provided by (used in) operating activities 4,135,651 (185,632) 3,950,019

Cash flows from noncapital financing activities:Transfers out 0 (159,650) (159,650)

Net cash provided by (used in) noncapital financing activities 0 (159,650) (159,650)

Cash flows from capital and related financing activities:Acquisition and construction of capital assets (241,018) (43,491) (284,509)Proceeds from sale of assets 0 1,050 1,050

Net cash used in capital and related financing activities (241,018) (42,441) (283,459)

Cash flow from investing activities:Interest on investments 86,443 52,381 138,824

Net cash provided by investing activities 86,443 52,381 138,824

Net increase (decrease) in cash & cash equivalents 3,981,076 (335,342) 3,645,734

Cash and cash equivalents at beginning of year 2,326,820 2,469,338 4,796,158

Cash and cash equivalents at end of year $6,307,896 $2,133,996 $8,441,892

Non-cash investing, capital and financing activities:Capital contributions $0 $48,010 $48,010

(Continued)

86


NON-MAJOR ENTERPRISE FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Continued)

YEAR ENDED SEPTEMBER 30, 2005Inspection Ambulance Totals

Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet: Current assets: Cash and cash equivalents $900 $150 $1,050 Equity in pooled cash and investments 6,034,850 2,133,846 8,168,696 Restricted assets: Equity in pooled cash and investments 272,146 0 272,146 Total cash and cash equivalents at end of year $6,307,896 $2,133,996 $8,441,892

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $3,921,291 ($643,128) $3,278,163 Other non-operating revenues 0 337 337 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 71,124 737,398 808,522 Provision for uncollectible accounts 1,888 4,499,079 4,500,967 (Increase) decrease in assets: Accounts receivable (2,574) (4,937,506) (4,940,080) Due from other governments 0 (9,500) (9,500) Inventory 0 (52,231) (52,231) Increase (decrease) in liabilities: Vouchers payable 24,818 47,826 72,644 Salaries and benefits payable (181) 34,544 34,363 Compensated absences (13,211) 135,219 122,008 Deposits 132,499 0 132,499 Due to other governments (3) 2,330 2,327

Net cash provided by (used in) operating activities $4,135,651 ($185,632) $3,950,019

87



(Continued)


Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet:Current assets:


Restricted assets:Equity in pooled cash and investmentsTotal cash and cash equivalents at end of year

Reconciliation of operating income (loss) to net cash provided by(used in) operating activities:

Operating income (loss)Other non-operating revenuesAdjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:DepreciationProvision for uncollectible accounts

(Increase) decrease in assets:Accounts receivableDue from other governmentsInventory

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesDepositsDue to other governments


87

Inspection

$9006,034,850

272,146

Ambulance

$1502,133,846

0

Totals

$1,0508,168,696

272,146$6,307,896

$3,921,2910

71,1241,888

(2,574)

24,818(181)

(13,211)132,499

(3)

$4,135,651

$2,133,996

($643,128)337

737,3984,499,079

(4,937,506)(9,500)

(52,231)

47,82634,544

135,2190

2,330

($185,632)

$8,441,892

$3,278,163337

808,5224,500,967

(4,940,080)(9,500)

(52,231)

72,64434,363

122,008132,499

2,327

$3,950,019

INTERNAL SERVICE FUNDS Board of County Commissioners: Internal Service Fund: The Internal Service Fund accounts for risk management activities provided to other County departments. Clerk of the Circuit Court: Internal Service Fund: The Internal Service Fund accounts for the annual costs related to the Compensated Absences Policy activities provided for the Clerk of the Circuit Court. Sheriff: Internal Service Fund: The Internal Service Fund accounts for the annual costs related to the Compensated Absences Policy activities provided for the Sheriff’s Office.

INTERNAL SERVICE FUNDS

Board of County Commissioners:

Internal Service Fund:

The Internal Service Fund accounts for risk management activities provided to other County departments.

Clerk of the Circuit Court:


The Internal Service Fund accounts for the annual costs related to the Compensated Absences Policyactivities provided for the Clerk of the Circuit Court.

Sheriff:


The Internal Service Fund accounts for the annual costs related to the Compensated Absences Policyactivities provided for the Sheriff’s Office.



COMBINING STATEMENT OF NET ASSETSSEPTEMBER 30, 2005

Board ofCounty Clerk of

Commissioners Court Sheriff TOTALASSETSCurrent assets: Cash and cash equivalents $33,880 $0 $0 $33,880 Equity in pooled cash and investments 12,271,538 0 0 12,271,538 Receivables (net of allowance for uncollectibles) 1,445,090 0 0 1,445,090 Due from other funds 0 223,805 1,497,733 1,721,538 Due from other governmental units 2,766 0 0 2,766 Restricted cash and cash equivalents 85,693 0 0 85,693 Total current assets 13,838,967 223,805 1,497,733 $15,560,505

Noncurrent assets: Capital assets (net of depreciation) 6,841 0 0 6,841 Advance to other funds 1,933,535 0 0 1,933,535 Total noncurrent assets 1,940,376 0 0 1,940,376 Total assets 15,779,343 223,805 1,497,733 17,500,881

LIABILITIESCurrent liabilities: Vouchers payable 383,720 0 0 383,720 Salaries, benefits and compensated absences payable 13,882 223,805 1,497,733 1,735,420 Due to other funds 13 0 0 13 Due to other governmental units 61,108 0 0 61,108 Other current liabilities 24,874 0 0 24,874 Customer deposits 85,693 0 0 85,693 Total current liabilities 569,290 223,805 1,497,733 2,290,828

Non-current liabilities: Compensated absences 46,785 1,360,602 14,060,265 15,467,652 Claims liabilities 13,901,801 0 0 13,901,801 Total non-current liabilities 13,948,586 1,360,602 14,060,265 29,369,453 Total liabilities 14,517,876 1,584,407 15,557,998 31,660,281

NET ASSETSInvested in capital assets, net of related debt 6,841 0 0 6,841Unrestricted 1,254,626 (1,360,602) (14,060,265) (14,166,241) Total net assets $1,261,467 ($1,360,602) ($14,060,265) ($14,159,400)


88



COMBINING STATEMENT OF NET ASSETSSEPTEMBER 30, 2005


Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)Due from other fundsDue from other governmental unitsRestricted cash and cash equivalents


Noncurrent assets:Capital assets (net of depreciation)

Advance to other fundsTotal noncurrent assets

Total assets

LIABILITIESCurrent liabilities:Vouchers payableSalaries, benefits and compensated absences payableDue to other fundsDue to other governmental unitsOther current liabilitiesCustomer deposits


Non-current liabilities:Compensated absencesClaims liabilities



Total net assets


Board ofCounty

CommissionersClerk ofCoun Shenfi TOTAL

$33,88012,271,538

1,445,0900

2,76685,693

$000

223,80500

$000

1,497,73300

$33,88012,271,538

1,445,0901,721,538

2,76685,693

13,838,967 223,805 1,497,733 $15,560,505

6,8411,933,535

6,8411,933,535

1,940,376 1,940,37615,779,343

000

223,805 (”0

00

1,497,73 17,500,881

383,72013,882

1361,10824,87485,693

0223,805

0000

1,497,73

oo

oo

wo 383,720

1,735,42013

61,10824,87485,693

569,290 223,805 1,497,733 2,290,828

46,78513,901,801

1,360,6020

14,060,2650

15,467,65213,901,801

13,948,586 1,360,602 14,060,265 29,369,45314,517,876 1,584,407 15,557,998 31,660,281

6,8411,254,626

0(1 ,360,602)

0(14,060,265)

6,841(14,166,241)

$1,261,467

88

($1,360,602) ($14,060,265) ($14,159,400)



STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSFOR THE YEAR ENDED SEPTEMBER 30, 2005


Commissioners Court Sheriff TOTAL

Operating revenues: Charges for services $8,609,378 $223,805 $1,497,733 $10,330,916 Miscellaneous income 549,125 0 0 549,125 Total operating revenues 9,158,503 223,805 1,497,733 10,880,041

Operating expenses: Personal services 397,167 250,558 492,868 1,140,593 Contractual services 3,663,461 0 0 3,663,461 Claims expense (3,771,589) 0 0 (3,771,589) Materials and supplies 123,017 0 0 123,017 Travel and vehicle costs 4,561 0 0 4,561 Depreciation 8,634 0 0 8,634 Memberships, dues and subscriptions 8,490 0 0 8,490 Insurance and bonds 1,928,122 0 0 1,928,122 Communications and freight services 5,840 0 0 5,840 Maintenance 10,994 0 0 10,994 Rentals and leases 22,964 0 0 22,964 Miscellaneous 511,088 0 0 511,088 Total operating expenses 2,912,749 250,558 492,868 3,656,175Operating income (loss) 6,245,754 (26,753) 1,004,865 7,223,866

Non-operating revenues (expenses): Interest income 432,099 0 0 432,099 Gain (loss) on disposal of assets (2,684) 0 0 (2,684) Total non-operating revenues (expenses) 429,415 0 0 429,415

Income (loss) before contributions and transfers 6,675,169 (26,753) 1,004,865 7,653,281

Other financing sources (uses): Capital contributions 1,757 0 0 1,757 Total contributions and transfers 1,757 0 0 1,757

Change in net assets 6,676,926 (26,753) 1,004,865 7,655,038

Net assets at beginning of year-restated (5,415,459) (1,333,849) (15,065,130) (21,814,438)Net assets at ending of year $1,261,467 (1,360,602) (14,060,265) (14,159,400)


89



STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSFOR THE YEAR ENDED SEPTEMBER 30, 2005

Operating revenues:Charges for servicesMiscellaneous income


Operating expenses:Personal servicesContractual servicesClaims expenseMaterials and suppliesTravel and vehicle costsDepreciationMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesMaintenanceRentals and leasesMiscellaneous


Non-operating revenues (expenses):Interest incomeGain (loss) on disposal of assets



Other financing sources (uses):Capital contributions

Total contributions and transfers


Net assets at beginning of year-restatedNet assets at ending of year


Board ofCounty

CommissionersClerk ofCourt Sheriff TOTAL

$8,609,378549,125

$223,8050

$1,497,7330

$10,330,916549,125

9,158,503 223,805 1 ,497,733 10,880,041

397,1673,663,461

(3,771,589)123,017

4,5618,6348,490

1,928,1225,840

10,99422,964

511,088

250,558

OO

OO

OO

OO

OO

O

492,868

OO

OO

OO

OO

OO

O

1,140,5933,663,461

(3,771,589)123,017

4,5618,6348,490

1,928,1225,840

10,99422,964

511,0882,912,749 250,558 492,868 3,656,1756,245,754 (26,753) 1,004,865 7,223,866

432,099(2,684) O

O 00

432,099(2,684)

429,415 0 429,415

6,675,169 (26,753) 1,004,865 7,653,281

1,757 O O 1,7571,757 1,757

6,676,926 (26,753) 1,004,865 7,655,038

(5,415,459) (1,333,849) (15,065,130) (21,814,438)$1,261,467

89

(1,360,602) (14,060,265) (14,159,400)



STATEMENT OF CASH FLOWSFOR THE YEAR ENDED SEPTEMBER 30, 2005


Commissioners Court Sheriff TOTALCash flows from operating activities: Cash received from customers $8,587,949 $0 $0 $8,587,949 Cash payments to suppliers for goods and services (6,629,973) 0 0 (6,629,973) Cash payments to employees for services (391,264) 0 0 (391,264) Net cash provided by (used in) operating activities 1,566,712 0 0 1,566,712

Cash flows from noncapital financing activities: Principal (paid)/received on interfund advance 1,170,959 0 0 1,170,959 Interest (paid)/received on interfund advance 116,004 0 0 116,004 Net cash provided by (used in) noncapital financing activities 1,286,963 0 0 1,286,963

Cash flow from investing activities: Interest on investments 316,095 0 0 316,095 Net cash provided by investing activities 316,095 0 0 316,095

Net increase (decrease) in cash & cash equivalents 3,169,770 0 0 3,169,770

Cash and cash equivalents at beginning of year 9,221,341 0 0 9,221,341Cash and cash equivalents at end of year $12,391,111 $0 $0 $12,391,111

Non-cash investing, capital and financing activities Capital contributions $1,757 $0 $0 $1,757The accompanying notes are an integral part of the financial statements.

90





Commissioners Court Sheriff TOTALCash flows from operating activities:

Cash received from customers $8,587,949 $0 $0 $8,587,949Cash payments to suppliers for goods and services (6,629,973) (6,629,973)Cash payments to employees for services (391,264) (391,264)

GO

O

GO

O

Net cash provided by (used in) operating activities 1,566,712 1,566,712

Cash flows from noncapital financing activities:Principal (paid)/received on interfund advance 1,170,959 1,170,959Interest (paid)/received on interfund advance 116,004 116,0040

0

OO

Net cash provided by (used in) noncapital financing activities 1,286,963 0 0 1,286,963

Cash flow from investing activities:Interest on investments 316,095 316,095O O

Net cash provided by investing activities 316,095 0 0 316,095

Net increase (decrease) in cash & cash equivalents 3,169,770 0 0 3,169,770

Cash and cash equivalents at beginning of year 9,221,341 0 0 9,221 ,341Cash and cash equivalents at end of year $12,391,111 $0 $0 $12,391,111

Non-cash investing, capital and financing activitiesCapital contributions $1,757 $0 $0 $1,757


90



STATEMENT OF CASH FLOWSFOR THE YEAR ENDED SEPTEMBER 30, 2005 Board of

County Clerk ofCommissioners Court Sheriff TOTAL

Reconciliation of cash and cash equivalents at end of year to Statement of Net Assets: Current assets: Cash and cash equivalents $33,880 $0 $0 $33,880 Equity in pooled cash and investments 12,271,538 0 0 12,271,538 Restricted assets: Cash and cash equivalents 85,693 0 0 85,693 Total cash and cash equivalents at end of year $12,391,111 $0 $0 $12,391,111

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $6,245,754 ($26,753) $1,004,865 $7,223,866 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 8,634 0 0 8,634 (Increase) decrease in assets: Accounts receivable (606,101) 0 0 (606,101) Due from other funds 0 (223,805) (1,497,733) (1,721,538) Due from other governments 33,541 0 0 33,541 Increase (decrease) in liabilities: Vouchers payable (72,606) 0 0 (72,606) Salaries and benefits payable 1,382 0 0 1,382 Compensated absences 4,521 250,558 492,868 747,947 Deposits 13,149 0 0 13,149 Due to other governments (20,865) 0 0 (20,865) Deferred revenue 2,006 0 0 2,006 Claims payable (4,042,703) 0 0 (4,042,703)

Net cash provided by (used in) operating activities $1,566,712 $0 $0 $1,566,712


91




Reconciliation of cash and cash equivalents at end of year to Statement ofNet Assets:Current assets:


Restricted assets:Cash and cash equivalents

Total cash and cash equivalents at end of year

Reconciliation of operating income (loss) to net cash provided by(used in) operating activities:Operating income (loss)Adjustments to reconcile operating income (loss) to net cash

provided by (used in) operating activities:Depreciation

(Increase) decrease in assets:Accounts receivableDue from other fundsDue from other governments

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesDepositsDue to other governmentsDeferred revenueClaims payable



91

Board ofCounty

CommissionersClerk ofCourt Sheriff TOTAL

$33,66012,271,538

85,693

$33,88012,271,538

85,693$12,391,111

$6,245,754

8,634

(606,101)0

33,541

(72,606)1,3824,521

13,149(20,665)

2,006(4,042,703)

($26,753)

0

0(223,605)

0

00

250,5580

OO

O

$1,004,665

0

0(1,497,733)

0

00

492,8680

00

0

$12,391,111

$7,223,866

8,634

(606,101)(1,721,538)

33,541

(72,606)1,362

747,94713,149

(20,865)2,006

(4,042,703)

$1,566,712 $0 $0 $1,566,712

FIDUCIARY FUNDS Clerk of the Circuit Court: Agency Fund: To account for the collection and disbursement of deposits which are required to be filed with the court pending the outcome of civil suits; to account for the collection and disbursement of deposits received by the Clerk from the State and County governments for payment of citizen services; and to account for the collection and disbursement of cash bonds, overpayments and miscellaneous items. Sheriff: Agency Fund: To account for the collection and disbursement of monies posted by individuals upon arrest and held by the Sheriff until final disposition by the court; to account for the collection and disbursement of monies forfeited by court order, that are designated to be used by the Sheriff for purposes other than meeting normal operating needs; to account for the collection and disbursement of monies deposited by insurance companies and attorneys awaiting civil execution, and monies obtained from Sheriff’s sale of abandoned and confiscated property, various court levies, writs of execution and miscellaneous receipts; to account for monies received from auction of unclaimed property held by the Sheriff; and to account for bond and purge monies and monies held on behalf of the inmates. Tax Collector: Agency Fund: To account for the collection and disbursement of ad valorem taxes, tangible personal property taxes and occupational licenses, as agent for other governments; and to account for the collection and disbursement of automobile registration, sales tax, boat licenses, hunting and fishing licenses and property appraiser fees, as agent for other governments.

FIDUCIARY FUNDS

Clerk of the Circuit Court:

Agency Fund:

To account for the collection and disbursement of deposits which are required to be filed with the courtpending the outcome of civil suits; to account for the collection and disbursement of deposits received by theClerk from the State and County governments for payment of citizen services; and to account for the collectionand disbursement of cash bonds, overpayments and miscellaneous items.

Sheriff:

Agency Fund:

To account for the collection and disbursement of monies posted by individuals upon arrest and held by theSheriff until final disposition by the court; to account forthe collection and disbursement of monies forfeited bycourt order, that are designated to be used by the Sheriff for purposes other than meeting normal operatingneeds; to account for the collection and disbursement of monies deposited by insurance companies andattorneys awaiting civil execution, and monies obtained from Sheriff’s sale of abandoned and confiscatedproperty, various court levies, writs of execution and miscellaneous receipts; to account for monies receivedfrom auction of unclaimed property held by the Sheriff; and to accountfor bond and purge monies and moniesheld on behalf of the inmates.

Tax Collector:

Agency Fund:

To account for the collection and disbursement of ad valorem taxes, tangible personal property taxes andoccupational licenses, as agent for other governments; and to account for the collection and disbursement ofautomobile registration, sales tax, boat licenses, hunting and fishing licenses and property appraiserfees, asagent for other governments.


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2005

Clerk Sheriff Tax CollectorGeneral General General

ASSETS Agency Funds Agency Funds Agency Funds TotalCash and cash equivalents $4,777,647 $551,034 $2,723,505 $8,052,186Receivables (net of allowance for uncollectibles) 16,697 0 87,418 104,115Due from other funds 0 209,519 0 209,519 Total assets 4,794,344 760,553 2,810,923 8,365,820

LIABILITIESPayable to others $175,688 $698,297 $314,000 $1,187,985Due to other governmental units 0 50,077 2,496,923 2,547,000Other current liabilities 4,618,656 12,179 0 4,630,835 Total liabilities 4,794,344 760,553 2,810,923 8,365,820

NET ASSETS $0 $0 $0 $0 Net Assets

92


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2005

Clerk Sheriff Tax CollectorGeneral General General

ASSETS Aqencv Funds Aqencv Funds Aqencv Funds TotalCash and cash equivalents $4,777,647 $551,034 $2,723,505 $8,052,186Receivables (net of allowance for uncollectibles) 16,697 0 87,418 104,115Due from other funds 0 209,519 0 209,519

Total assets 4,794,344 760,553 2,810,923 8,365,820

LIABILITIESPayable to others $175,688 $698,297 $314,000 $1,187,985Due to other governmental units 0 50,077 2,496,923 2,547,000Other current liabilities 4,618,656 12,179 0 4,630,835

Total liabilities 4,794,344 760,553 2,810,923 8,365,820

NET ASSETS $0 $0 $0 $0Net Assets

92


STATEMENT OF CHANGES IN ASSETS AND LIABILITIESAGENCY FUNDS


Balance BalanceOctober 1, September 30,

2004 Additions Deductions 2005Clerk of the Circuit Court: Assets: Cash and cash equivalents $4,246,210 $23,136,425 $22,604,988 $4,777,647 Accounts receivable (net of allowance for uncollectibles) 15,692 67,391 66,386 16,697 Due from other governments 262 383 645 0 Total assets 4,262,164 23,204,199 22,672,019 4,794,344

Liabilities: Payable to others $175,988 $10,837,862 $10,838,162 $175,688 Due to other funds 0 137,181 137,181 0 Due to other governmental units 857,194 1,683,992 2,541,186 0 Other current liabilities 3,228,982 10,571,089 9,181,415 4,618,656 Total liabilities 4,262,164 23,230,124 22,697,944 4,794,344

Net assets: $0 $0

Sheriff: Assets: Cash and cash equivalents $170,225 $6,090,506 $5,709,697 $551,034 Due from other funds 0 209,519 0 209,519 Total assets 170,225 6,300,025 5,709,697 760,553

Liabilities: Payable to others $115,981 $5,460,591 $4,878,275 $698,297 Due to other funds 16,725 0 16,725 0 Due to other governmental units 26,235 902,782 878,940 50,077 Other current liabilities 11,284 895 0 12,179 Total liabilities 170,225 6,364,268 5,773,940 760,553

Net assets: $0 $0(Continued)

93





2004 Additions Deductions 2005Clerk of the Circuit Court:

Assets:Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other governments

Total assets

Liabilities:Payable to othersDue to other fundsDue to other governmental unitsOther current liabilities

Total liabilities

Net assets:

Sheriff:Assets:

Cash and cash equivalentsDue from other funds

Total assets


Total liabilities

Net assets:

$4,246,210

15,692262

$23,136,425

67,391383

$22,604,988

66,386645

$4,777,647

16,6970

4,262,164 23,204,199 22,672,019 4,794,344

$175,9880

857,1943,228,982

$10,837,862137,181

1,683,99210,571,089

$10,838,162137,181

2,541,1869,181,415

$175,68800

4,618,6564,262,164 23,230,124 22,697,944 4,794,344

$0

$170,2250

$6,090,506209,519

$5,709,6970

$0

$551,034209,519

170,225 6,300,025 5,709,697 760,553

$115,98116,72526,23511,284

$5,460,5910

902,782895

$4,878,27516,725

878,9400

$698,2970

50,07712,179

170,225 6,364,268 5,773,940 760,553

$0

93

$0(Continued)





2004 Additions Deductions 2005Tax Collector: Assets: Cash and cash equivalents $3,614,324 $696,266,843 $697,157,662 $2,723,505 Accounts receivable (net of allowance for uncollectibles) 67,081 5,685,805 5,665,468 87,418 Due from other funds 1,329,138 0 1,329,138 0 Total assets 5,010,543 701,952,648 704,152,268 2,810,923

Liabilities: Payable to others $387,008 $51,065,198 $51,138,206 $314,000 Due to other funds 1,505,756 0 1,505,756 0 Due to other governmental units 3,117,779 266,743,367 267,364,223 2,496,923 Total liabilities 5,010,543 317,808,565 320,008,185 2,810,923

Net Assets: $0 $0

Total Agency Funds: Assets: Cash and cash equivalents $8,030,759 $725,493,774 $725,472,347 $8,052,186 Accounts receivable (net of allowance for uncollectibles) 82,773 5,753,196 5,731,854 104,115 Due from other funds 1,329,138 209,519 1,329,138 209,519 Due from other governmental units 262 383 645 0 Total assets 9,442,932 731,456,872 732,533,984 8,365,820

Liabilities: Payable to others $678,977 $67,363,651 $66,854,643 $1,187,985 Due to other funds 1,522,481 137,181 1,659,662 0 Due to other governmental units 4,001,208 269,330,141 270,784,349 2,547,000 Other current liabilities 3,240,266 10,571,984 9,181,415 4,630,835 Total liabilities 9,442,932 347,402,957 348,480,069 8,365,820

Net assets: $0 $0

94




BalanceSeptember 30,

BalanceOctober 1,

Tax Collector:Assets:

Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other funds

Total assets

Liabilities:Payable to othersDue to other fundsDue to other governmental units

Total liabilities

Net Assets:

Total Agency Funds:Assets:

Cash and cash equivalentsAccounts receivable (net of allowancefor uncollectibles)Due from other fundsDue from other governmental units

Total assets


Total liabilities

Net assets:

2004 Additions Deductions 2005

$3,614,324

67,0811,329,138

$696,266,843

5,685,8050

$697,157,662

5,665,4681,329,138

$2,723,505

87,4180

5,010,543 701,952,648 704,152,268 2,810,923

$387,0081,505,7563,117,779

$51,065,1980

266,743,367

$51,138,2061,505,756

267,364,223

$314,0000

2,496,9235,010,543 317,808,565 320,008,185 2,810,923

$0

$8,030,759

82,7731,329,138

262

$725,493,774

5,753,196209,519

383

$725,472,347

5,731,8541,329,138

645

$0

$8,052,186

104,115209,519

09,442,932 731,456,872 732,533,984 8,365,820

$678,9771,522,4814,001,2083,240,266

$67,363,651137,181

269,330,14110,571,984

$66,854,6431,659,662

270,784,3499,181,415

$1,187,9850

2,547,0004,630,835

9,442,932 347,402,957 348,480,069 8,365,820

$0

94

$0

STATISTICAL SECTION Statistical schedules, which are unaudited, differ from financial statements because they usually cover more than one fiscal year and may present nonaccounting data. These schedules reflect social and economic data, and financial trends of the government. The following tables did not have any activity for the last ten fiscal years:

1. Ratio of net general bonded debt to assessed value and net bonded debt per capita;

2. Computation of legal debt margin;

3. Ratio of annual debt service expenditures for general bonded debts for total general expenditures; and

4. Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds.

STATISTICAL SECTION

Statistical schedules, which are unaudited, differfrom financial statements because they usually cover morethan one fiscal year and may present nonaccounting data. These schedules reflect social and economic data,and financial trends of the government.

The following tables did not have any activity for the last ten fiscal years:

1.

2.

Ratio of net general bonded debt to assessed value and net bonded debt per capita;

Computation of legal debt margin;

Ratio of annual debt service expenditures for general bonded debts for total general expenditures;and

Computation of Direct and Overlapping Bonded Debt - General Obligation Bonds.

ESCAMBIA COUNTY, FLORIDASEPTEMBER 30, 2005

TABLE 1GOVERNMENT-WIDE EXPENSES BY FUNCTION

2005 2004 2003 2002

General government $30,259,660 $18,991,464 $27,824,278 $31,365,853Public safety 319,042,002 129,147,683 105,844,911 92,078,863Physical environment 2,306,914 1,081,449 1,608,537 1,609,876Transportation 46,601,198 48,510,758 52,160,788 48,392,098Economic environment 9,115,413 12,049,668 11,194,640 10,754,806Human services 4,662,761 4,706,530 4,340,688 4,143,983Culture and recreation 5,497,253 4,179,058 4,187,822 5,695,732Court related 9,140,462 11,849,716 4,650,983 4,623,410Interest on long-term debt 7,850,023 7,517,482 8,584,343 5,316,046Solid waste 13,931,979 8,411,321 6,702,610 5,378,050Civic center 5,712,799 5,244,904 5,046,735 4,663,308Industrial park 609,116 780,684 507,575 0Other 16,365,313 15,066,666 14,294,176 14,456,263 Total government-wide expenses by function $471,094,893 $267,537,383 $246,948,086 $228,478,288

GOVERNMENT-WIDE REVENUESProgram Revenues

Charges for services $92,519,294 $76,369,013 $69,532,361 $50,920,754Operating grants and contributions 212,135,469 22,271,680 12,493,780 13,430,633Capital grants and contributions 7,094,531 12,287,617 8,850,924 11,019,953

General Revenues

Property taxes 98,901,932 85,558,122 80,315,156 87,147,301Gasoline taxes 14,326,588 13,510,022 12,913,107 13,158,899Sales tax 60,769,046 49,974,648 48,305,787 46,513,619Other taxes 4,135,528 4,767,723 4,338,875 8,184,340Intergovernmental 13,773,839 7,860,391 7,117,329 7,058,385Interest income 6,565,482 2,833,690 3,034,335 3,020,225Sale of assets 1,092,461 425,826 178,219 397,725Miscellaneous 2,459,908 335,058 2,089,276 2,511,666Insurance reimbursement 3,974,807 5,940,532 0 0Capital contributions 2,829,019 6,640,079 2,672,630 483,090Transfers - internal activities 0 0 0 0Special items: Landfill closure estimates 0 0 10,367,898 0 Payment to SRIA of bonds issued 0 0 (32,000,000) 0 Total government-wide revenues $520,577,904 $288,774,401 $230,209,677 $243,846,590

Only four years are available due to initial GASB 34 implementation in fiscal year 2002.

95

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long-term debtSolid wasteCivic centerIndustrial parkOther

Total government-wideexpenses by function

Program Revenues

Charges for servicesOperating grants and contributionsCapital grants and contributions

General Revenues

Property taxesGasoline taxesSales taxOther taxesIntergovernmentalInterest incomeSale of assetsMiscellaneousInsurance reimbursementCapital contributions

ESCAMBIA COUNTY, FLORIDASEPTEMBER 30, 2005

2005

GOVERNMENT-WIDE EXPENSES BY FUNCTION

2004 2003

TABLE 1

2002

$30,259,660319,042,002

2,306,91446,601,198

9,115,4134,662,7615,497,2539,140,4627,850,023

13,931,9795,712,799

609,11616,365,313

$18,991,464129,147,683

1,081,44948,510,75812,049,6684,706,5304,179,058

11,849,7167,517,4828,411,3215,244,904

780,68415,066,666

$27,824,278105,844,911

1,608,53752,160,78811,194,6404,340,6884,187,8224,650,9838,584,3436,702,6105,046,735

507,57514,294,176

$31,365,85392,078,863

1,609,87648,392,09810,754,8064,143,9835,695,7324,623,4105,316,0465,378,0504,663,308

014,456,263

$471,094,893 $267,537,383

GOVERNMENT-WIDE REVENUES

$92,519,294212,135,469

7,094,531

98,901,93214,326,58860,769,046

4,135,52813,773,8396,565,4821,092,4612,459,9083,974,8072,829,019

Transfers - internal activities 0Special items:

Landfill closure estimates 0Payment to SRIA of bonds issued 0Total government-wide revenues

Only four years are available due to initial GASB 34 implementation in fiscal year 2002.

$76,369,01322,271,68012,287,617

85,558,12213,510,02249,974,648

4,767,7237,860,3912,833,690

425,826335,058

5,940,5326,640,079

0

OO

$246,948,086

$69,532,36112,493,7808,850,924

80,315,15612,913,10748,305,787

4,338,8757,117,3293,034,335

178,2192,089,276

02,672,630

0

10,367,898(32,000,000)

$228,478,288

$50,920,75413,430,63311,019,953

87,147,30113,158,89946,513,619

8,184,3407,058,3853,020,225

397,7252,511,666

0483,090

0

OO

$520,577,904

95

$288,774,401 $230,209,677 $243,846,590

TABLE 2


GENERAL GOVERNMENT REVENUE BY SOURCE (1)

Last Ten Fiscal Years

(Unaudited)

LicensesFiscal and Intergovernmental Charges for Fines and Miscellaneousyear Taxes permits revenue services forfeits revenue Total

1996 $67,069,414 $279,527 $50,897,177 $8,713,330 $5,112,759 $12,128,764 $144,200,9711997 $69,225,980 $681,430 $42,991,749 $12,073,181 $2,402,829 $12,015,262 $139,390,4311998 $72,317,428 $633,420 $46,798,921 $11,925,100 $2,213,993 $11,561,838 $145,450,7001999 $79,510,677 $669,113 $53,397,616 $12,905,312 $2,535,876 $13,828,485 $162,847,0792000 $83,793,166 $383,474 $48,304,693 $14,498,900 $2,003,118 $18,337,066 $167,320,4172001 $91,894,364 $619,375 $47,965,336 $14,646,341 $2,294,324 $17,255,612 $174,675,3522002 $97,942,585 $438,953 $52,329,254 $14,768,171 $2,118,861 $15,780,817 $183,378,6412003 $102,895,288 $447,824 $49,481,896 $16,301,403 $2,497,410 $15,743,616 $187,367,4372004 $109,062,960 $471,916 $61,399,528 $18,204,348 $2,105,114 $22,418,836 $213,662,7022005 $122,501,801 $639,935 $259,530,850 $24,259,922 $966,496 $22,628,454 $430,527,458

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds.

96

TABLE 2


GENERAL GOVERNMENT REVENUE BY SOURCE (1)


(Unaudited)

Fiscalyear Taxes

Licensesand

permitsIntergovernmental

revenue

Charges forservices

Fines andforfeits

Miscellaneousrevenue Total

1996199719981999200020012002200320042005

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds.

$67,069,414$69,225,980$72,317,428$79,510,677$83,793,166$91,894,364$97,942,585

$102,895,288$109,062,960$122,501,801

$279,527$681,430$633,420$669,113$383,474$619,375$438,953$447,824$471,916$639,935

$50,897,177$42,991,749$46,798,921$53,397,616$48,304,693$47,965,336$52,329,254$49,481,896$61,399,528

$259,530,850

96

$8,713,330$12,073,181$11,925,100$12,905,312$14,498,900$14,646,341$14,768,171$16,301,403$18,204,348$24,259,922

$5,112,759$2,402,829$2,213,993$2,535,876$2,003,118$2,294,324$2,118,861$2,497,410$2,105,114

$966,496

$12,128,764$12,015,262$11,561,838$13,828,485$18,337,066$17,255,612$15,780,817$15,743,616$22,418,836$22,628,454

$144,200,971$139,390,431$145,450,700$162,847,079$167,320,417$174,675,352$183,378,641$187,367,437$213,662,702$430,527,458

TABLE 3ESCAMBIA COUNTY, FLORIDA

GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)


(Unaudited)

Fiscal General Public Physical Economic Human Culture and Debtyear government safety environment Transportation environment services recreation service Total

1996 $41,386,816 $47,428,730 $3,076,171 $20,723,028 $3,539,719 $4,446,676 $2,526,853 $8,425,553 $131,553,5461997 $41,931,953 $53,229,976 $1,376,393 $17,064,791 $6,109,967 $4,206,141 $1,447,311 $8,251,510 $133,618,0421998 $43,895,993 $55,123,516 $1,458,898 $18,378,723 $6,917,201 $3,719,108 $1,391,876 $8,996,629 $139,881,9441999 $48,925,697 $65,783,177 $1,576,278 $19,770,574 $7,063,034 $3,714,999 $1,836,727 $7,905,654 $156,576,1402000 $50,169,585 $66,788,679 $927,820 $23,475,899 $9,414,742 $4,054,694 $3,098,851 $12,151,499 $170,081,7692001 $54,808,217 $73,761,542 $999,564 $24,614,330 $9,901,839 $3,844,566 $2,222,289 $12,547,222 $182,699,5692002 $56,090,652 $80,333,498 $1,314,708 $18,834,814 $10,082,849 $3,885,068 $2,326,902 $16,157,238 $189,025,7292003 $57,690,227 $86,097,005 $1,489,933 $21,321,977 $10,369,211 $3,780,390 $2,247,779 $17,841,567 $200,838,0892004 $58,584,325 $102,624,309 $1,010,257 $22,321,982 $11,256,431 $4,148,846 $2,348,559 $18,072,223 $220,366,9322005 $59,911,491 $307,440,069 $2,275,527 $21,727,557 $8,991,394 $4,334,071 $3,113,021 $21,441,061 $429,234,191

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds

97

Fiscalyear

Generalgovernment

Publicsafety


GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)

Physicalenvironment


(Unaudited)

TransportationEconomic

environmentHuman

servicesCulture andrecreation

Debtservice

TABLE 3

Total

1996199719981999200020012002200320042005

$41,386,816$41,931,953$43,895,993$48,925,697$50,169,585$54,808,217$56,090,652$57,690,227$58,584,325$59,911,491

$47,428,730$53,229,976$55,123,516$65,783,177$66,788,679$73,761,542$80,333,498$86,097,005

$102,624,309$307,440,069

$3,076,171$1,376,393$1,458,898$1,576,278

$927,820$999,564

$1,314,708$1,489,933$1,010,257$2,275,527

$20,723,028$17,064,791$18,378,723$19,770,574$23,475,899$24,614,330$18,834,814$21,321,977$22,321,982$21,727,557

$3,539,719$6,109,967$6,917,201$7,063,034$9,414,742$9,901,839

$10,082,849$10,369,211$11,256,431$8,991,394

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds

97

$4,446,676$4,206,141$3,719,108$3,714,999$4,054,694$3,844,566$3,885,068$3,780,390$4,148,846$4,334,071

$2,526,853$1,447,311$1,391,876$1,836,727$3,098,851$2,222,289$2,326,902$2,247,779$2,348,559$3,113,021

$8,425,553$8,251,510$8,996,629$7,905,654

$12,151,499$12,547,222$16,157,238$17,841,567$18,072,223$21,441,061

$131,553,546$133,618,042$139,881,944$156,576,140$170,081,769$182,699,569$189,025,729$200,838,089$220,366,932$429,234,191


SCHEDULE OF PROPERTY TAXES LEVIED AND COLLECTED


(Unaudited)

Percent of Percent ofDelinquent total tax Outstanding delinquent

Fiscal Property taxes Property taxes Percent (%) tax Total tax collections delinquent taxes toyear levied collected collected collections collections to tax levy taxes tax levy

1996 $51,327,079 $48,996,226 95.46% $171,394 $49,167,620 95.8% $258,444 0.5%1997 $52,878,465 $50,661,508 95.81% $179,773 $50,841,281 96.1% $256,930 0.5%1998 $55,227,269 $53,041,240 96.04% $136,922 $53,178,162 96.3% $260,741 0.5%1999 $63,784,341 $61,340,967 96.17% $178,305 $61,519,272 96.4% $334,503 0.5%2000 $67,988,129 $65,012,144 95.62% $328,331 $65,340,474 96.1% $507,901 0.7%2001 $74,441,707 $70,920,865 95.27% $684,398 $71,605,263 96.2% $595,133 0.8%2002 $79,338,248 $76,446,757 96.36% $0 $76,446,757 96.4% $401,843 0.5%2003 $82,944,351 $79,837,671 96.25% $477,485 $80,315,156 96.8% $414,621 0.5%2004 $89,493,802 $84,886,875 94.85% $671,247 $85,558,122 95.6% $2,718,907 3.0%2005 $106,448,930 $97,192,731 91.30% $1,709,201 $98,901,932 92.9% $201,348 0.2%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does not include the School Board.

98

Fiscalyear

1996199719981999200020012002200320042005

Property taxeslevied

$51,327,079$52,878,465$55,227,269$63,784,341$67,988,129$74,441,707$79,338,248$82,944,351$89,493,802

$106,448,930


SCHEDULE OF PROPERTY TAXES LEVIED AND COLLECTED

Property taxescollected

$48,996,226$50,661,508$53,041,240$61,340,967$65,012,144$70,920,865$76,446,757$79,837,671$84,886,875$97,192,731

Percent (%)collected

95.46%95.81%96.04%96.17%95.62%95.27%96.36%96.25%94.85%91.30%


(Unaudited)

Delinquenttax

collections

$171,394$179,773$136,922$178,305$328,331$684,398

$0$477,485$671,247

$1,709,201

Total taxcollections

$49,167,620$50,841,281$53,178,162$61,519,272$65,340,474$71,605,263$76,446,757$80,315,156$85,558,122$98,901,932

Percent oftotal tax

collectionsto tax levy

95.8%96.1%96.3%96.4%96.1%96.2%96.4%96.8%95.6%92.9%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does notinclude the School Board.

98

Outstandingdelinquent

taxes

$258,444$256,930$260,741$334,503$507,901$595,133$401,843$414,621

$2,718,907$201,348

TABLE 4

Pementofdeauenttaxestotaxlevy

0.5%0.5%0.5%0.5%0.7%0.8%0.5%0.5%3.0%0.2%


ASSESSED AND JUST VALUE OF TAXABLE PROPERTY


(Unaudited)

Real Property Personal Property Total Ratio of totalFiscal Just Just Centrally Just assessed toyear Assessed value value Assessed value value assessed Assessed value value total estimated

1996 $5,933,495,090 $8,753,826,710 $1,383,706,390 $1,631,463,540 $13,732,100 $7,330,933,580 $10,399,022,350 70.50%1997 $6,071,636,210 $8,907,368,300 $1,450,253,010 $1,733,169,700 $16,435,970 $7,538,325,190 $10,656,973,970 70.74%1998 $6,898,837,840 $9,980,580,030 $1,483,806,610 $1,782,792,320 $26,030,830 $8,408,675,280 $11,789,403,180 71.32%1999 $7,602,283,900 $11,046,665,930 $1,563,845,812 $1,864,294,192 $21,403,570 $9,187,553,282 $12,932,363,692 71.04%2000 $8,796,084,360 $12,428,794,460 $1,667,787,720 $1,952,344,370 $19,933,910 $10,483,805,990 $14,401,072,740 72.80%2001 $9,525,466,400 $13,106,468,240 $1,688,806,660 $1,870,757,698 $16,822,410 $11,231,095,470 $14,994,048,348 74.90%2002 $9,894,481,610 $13,632,390,600 $1,760,295,384 $1,942,601,673 $18,318,380 $11,673,095,374 $15,593,310,653 74.86%2003 $10,792,411,230 $13,315,119,120 $1,780,386,101 $2,083,218,610 $25,607,560 $12,598,404,891 $15,423,945,290 81.68%2004 $13,001,683,410 $17,167,533,360 $1,851,575,447 $2,148,921,988 $24,542,320 $14,877,801,177 $19,340,997,668 76.92%2005 $13,049,963,120 $18,226,317,130 $1,840,421,686 $2,177,577,331 $17,849,210 $14,908,234,016 $20,421,743,671 73.00%

Source: Escambia County Property Appraiser

99

Fiscalyear

1996199719981999200020012002200320042005

Real Property


ASSESSED AND JUST VALUE OF TAXABLE PROPERTY


(Unaudited)

Personal Property

Assessed value

$5,933,495,090$6,071 ,636,210$6,898,837,840$7,602,283,900$8,796,084,360$9,525,466,400$9,894,481,610

$10,792,411,230$13,001,683,410$13,049,963,120

Justvalue

$8,753,826,710$8,907,368,300$9,980,580,030

$11,046,665,930$12,428,794,460$13,106,468,240$13,632,390,600$13,315,119,120$17,167,533,360$18,226,317,130


Assessed value

$1 ,383,706,390$1 ,450,253,010$1 ,483,806,610$1 ,563,845,812$1 ,667,787,720$1 ,688,806,660$1 ,760,295,384$1 ,780,386,101$1 ,851 ,575,447$1 ,840,421,686

Justvalue

$1 ,631,463,540$1 ,733,169,700$1 ,782,792,320$1 ,864,294,192$1 ,952,344,370$1 ,870,757,698$1 ,942,601 ,673$2,083,218,610$2,148,921 ,988$2,177,577,331

99

Centrallyassessed

$13,732,100$16,435,970$26,030,830$21,403,570$19,933,910$16,822,410$18,318,380$25,607,560$24,542,320$17,849,210

Total

Assessed value

$7,330,933,580$7,538,325,190$8,408,675,280$9,187,553,282

$10,483,805,990$11,231,095,470$11,673,095,374$12,598,404,891$14,877,801,177$14,908,234,016

Justvalue

$10,399,022,350$10,656,973,970$11,789,403,180$12,932,363,692$14,401 ,072,740$14,994,048,348$15,593,310,653$15,423,945,290$19,340,997,668$20,421 ,743,671

TABLE 5

Ratio of totalassessed to

total estimated

70.50%70.74%71.32%71.04%72.80%74.90%74.86%81.68%76.92%73.00%

TABLE 6


PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $1000 OF ASSESSED VALUE)


(Unaudited)

City of Pensacola Northwest

Escambia Escambia County Downtown FloridaFiscal Escambia County Municipal Service City of Improvement Water Town of TotalYear County School Board Taxing Unit Pensacola Board Management Century County

1996 8.789 9.919 0.495 5.057 2.0000 0.050 1.155 27.46501997 8.756 9.616 0.495 5.057 2.0000 0.050 1.128 27.10201998 8.260 9.565 0.466 5.057 2.0000 0.050 1.091 26.48901999 8.756 9.556 0.495 5.057 2.0000 0.050 1.091 27.00502000 8.756 9.011 0.747 5.057 2.0000 0.050 1.086 26.70702001 8.756 9.249 0.747 5.057 2.0000 0.050 1.031 26.89002002 8.756 8.986 0.747 5.057 2.0000 0.050 0.998 26.59402003 8.756 8.887 0.747 5.057 1.0000 0.050 0.981 25.47802004 8.756 8.788 0.747 5.057 2.0000 0.050 0.941 26.33902005 8.756 8.41 0.747 5.057 2.0000 0.050 0.828 25.8480


100

FiscalYear

1996199719981999200020012002200320042005

EscambiaCounty

8.7898.7568.2608.7568.7568.7568.7568.7568.7568.756

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $1000 OF ASSESSED VALUE]

EscambiaCounty

School Board

9.9199.6169.5659.5569.0119.2498.9868.8878.7888.41




Escambia CountyMunicipal Service

Taxing Unit

0.4950.4950.4660.4950.7470.7470.7470.7470.7470.747

(Unaudited)

City ofPensacola

5.0575.0575.0575.0575.0575.0575.0575.0575.0575.057

100

City ofPensacolaDowntown

ImprovementBoard

2.00002.00002.00002.00002.00002.00002.00001.00002.00002.0000

NorthwestFloridaWater

Management

0.0500.0500.0500.0500.0500.0500.0500.0500.0500.050

Town ofCentury

1.1551.1281.0911.0911.0861.0310.9980.9810.9410.828

TABLE 6

TotalCounty

27.465027.102026.489027.005026.707026.890026.594025.478026.339025.8480

TABLE 7


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2005

(Unaudited)

Direct Debt of Escambia County Non-Self SelfAs of September 30, 2005 Supporting Supporting

Road Improvement Revenue Bonds, Series 1993B, due 2009 $4,225,000 $0Sales Tax Revenue Bonds, Series 2002, due 10/01/2033 88,050,000 0Tourism Development Revenue Bonds, Series 2002, due 10/01/2019 15,000,000 0Capital Improvement Bonds, Series 2002, due 10/01/2032 21,465,000 0Capital Improvement Revenue Note, Series 1997 8,785,000 0Capital Improvement Revenue Note, Series 1998 5,602,000 0Capital Improvement Revenue Note, Series 1999C 12,305,000 0Capital Improvement Revenue Note, Series 2003 2,800,000 0SunTrust Line of Credit 0 394,787Toll Facility Revolving Trust Fund 302,501 0Obligations under Capital Lease(s) 6,631,668 0Total Escambia County Direct Debt $165,166,169 $394,787

Direct Debt of Escambia County School BoardAs of June 30, 2005

State Board of Education Bonds, 1996A; 1996B; 1997A; 1998A; 2001B; 2002B; 2003A $11,535,000 $0 2004A, 2005ACertificates of Participation 59,425,000Obligations under Capital Lease 5,397,412Long-Term Notes PayableTotal Escambia County School Board Direct Debt $64,822,412 $0

Direct Debt of Emerald Coast Utilities AuthorityAs of September 30, 2005

Utility System Revenue Bonds, Series 1992B, due 1/1/15 $0 $41,871,980Utility System Revenue Bonds, Series 1996, due 1/1/06 0 370,000Sanitation System Improvement and Refunding Revenue Bonds, Series 1998, due 1/1/22 0 12,655,000Utility System Revenue Bonds, Series 1998A, due 1/1/28 0 9,925,000Utility System Refunding Revenue Bonds, Series 1998B, due 1/1/23 0 13,230,000Utility System Revenue Bonds, Series 1998C, due 1/1/11 0 2,525,000Utility System Revenue Bonds, Series 1998D, due 1/1/11 0 21,940,000Utility System Revenue Bonds, Series 1999, due 1/1/29 0 23,500,000Utility System Revenue Bonds, Series 2001, due 1/1/31 0 9,260,000State of Florida Department of Environmental Protection, Revolving Loan, due 9/15/26 0 3,163,288Utility System Revenue Bonds, Series 2001B, due 1/1/22 0 5,260,000Utility System Revenue Bonds, Series 2003, due 1/1/33 0 22,685,000Utility System Revenue Bonds, Series 2004, due 1/1/27 0 15,770,000Total Escambia County Utilities Authority Direct Debt $0 $182,155,268

101


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2005

(Unaudited)

Non-SelfSupporting

Direct Debt of Escambia CountyAs of September 30, 2005

TABLE 7

SelfSupporting

$4,225,00088,050,00015,000,00021,465,000

8,785,0005,602,000

Road Improvement Revenue Bonds, Series 1993B, due 2009Sales Tax Revenue Bonds, Series 2002, due 10/01/2033Tourism Development Revenue Bonds, Series 2002, due 10/01/2019Capital Improvement Bonds, Series 2002, due 10/01/2032Capital Improvement Revenue Note, Series 1997Capital Improvement Revenue Note, Series 1998Capital Improvement Revenue Note, Series 1999C 12,305,000Capital Improvement Revenue Note, Series 2003 2,800,000SunTrust Line of Credit 0Toll Facility Revolving Trust Fund 302,501Obligations under Capital Lease(s) 6,631,668

OO

OO

OO

OO

394,7870O

Total Escambia County Direct Debt $165,166,169

Direct Debt of Escambia County School BoardAs of June 30, 2005

State Board of Education Bonds, 1996A; 1996B; 1997A; 1998A; 2001B; 2002B; 2003A2004A, 2005A

Certificates of ParticipationObligations under Capital LeaseLong-Term Notes Payable

$11,535,000

59,425,0005,397,412

$394,787

$0

Total Escambia County School Board Direct Debt $64,822,412

Direct Debt of Emerald Coast Utilities AuthorityAs of September 30, 2005

Utility System Revenue Bonds, Series 1992B, due 1/1/15Utility System Revenue Bonds, Series 1996, due 1/1/06Sanitation System Improvement and Refunding Revenue Bonds, Series 1998, due 1/1/22Utility System Revenue Bonds, Series 1998A, due 1/1/28Utility System Refunding Revenue Bonds, Series 1998B, due 1/1/23Utility System Revenue Bonds, Series 1998C, due 1/1/11Utility System Revenue Bonds, Series 1998D, due 1/1/11Utility System Revenue Bonds, Series 1999, due 1/1/29Utility System Revenue Bonds, Series 2001, due 1/1/31State of Florida Department of Environmental Protection, Revolving Loan, due 9/15/26Utility System Revenue Bonds, Series 2001B, due 1/1/22Utility System Revenue Bonds, Series 2003, due 1/1/33Utility System Revenue Bonds, Series 2004, due 1/1/27

99

$0

$41,871,980370,000

12,655,0009,925,000

13,230,0002,525,000

21,940,00023,500,000

9,260,0003,163,2885,260,000

22,685,00015,770,000

OO

OO

OO

OO

OO

OO

OO

99Total Escambia County Utilities Authority Direct Debt

101

$182,155,268

TABLE 7


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2005

(Unaudited)

Overlapping Long Term Debt of the City of Pensacola Non-Self SelfAs of September 30, 2005 Supporting Supporting

Airport Revenue Bonds, Series 1993, due 10/1/18 $0 $0Airport Revenue Bonds, Series 1997A, due 10/1/28 0 0Airport Revenue Bonds, Series 1997B, due 10/1/15 0 0Airport Revenue Refunding Bonds, Series 1998A, due 10/1/18 0 14,730,000Airport Revenue Bonds, Series 1997B, due 10/01/14 0 5,625,000Airport Revenue Refunding Bonds, Series 2005A, due 10/01/27 0 15,145,000Gas System Revenue Bonds, Series 1999, due 10/01/19 0 8,000,000Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07 0 3,650,000Redevelopment Refunding Bond, Series 2004, due 4/1/13 2,926,073 0Sales and Excise Tax Revenue Bonds, Series 1990, due 10/1/05 353,425 0Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08 8,600,000 0Sales and Excise Tax Revenue Refunding Bonds, Series 2004, due 10/1/12 12,330,950 1,524,050Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07 2,750,000 0Capital Improvement Revenue Note, Series 2000A, due 10/1/17 6,500,000 0Capital Improvement Revenue Note, Series 2000B, due 10/1/17 13,500,000 0Capital Improvement Revenue Note, Series 1996, due 10/1/06 120,000 0Capital Improvement Revenue Note (Airport), Series 2002, due 10/1/05 0 50,000

$47,080,448 $48,724,050

Source : City of Pensacola, Florida, Comprehensive Annual Financial Report Escambia County, Florida, Comprehensive Annual Financial Report

102


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2005

(Unaudited)

Overlapping Long Term Debt of the City of PensacolaAs of September 30, 2005

Non-SelfSupporting

TABLE 7

SelfSupporting

Airport Revenue Bonds, Series 1993, due 10/1/18Airport Revenue Bonds, Series 1997A, due 10/1/28Airport Revenue Bonds, Series 1997B, due 10/1/15Airport Revenue Refunding Bonds, Series 1998A, due 10/1/18Airport Revenue Bonds, Series 1997B, due 10/01/14Airport Revenue Refunding Bonds, Series 2005A, due 10/01/27Gas System Revenue Bonds, Series 1999, due 10/01/19Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07Redevelopment Refunding Bond, Series 2004, due 4/1/13Sales and Excise Tax Revenue Bonds, Series 1990, due 10/1/05Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08Sales and Excise Tax Revenue Refunding Bonds, Series 2004, due 10/1/12Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07Capital Improvement Revenue Note, Series 2000A, due 10/1/17Capital Improvement Revenue Note, Series 2000B, due 10/1/17Capital Improvement Revenue Note, Series 1996, due 10/1/06Capital Improvement Revenue Note (Airport), Series 2002, due 10/1/05

Source : City of Pensacola, Florida, Comprehensive Annual Financial ReportEscambia County, Florida, Comprehensive Annual Financial Report

102

00

00

00

0

02,926,073

353,4258,600,000

12,330,9502,750,0006,500,000

13,500,000120,000

0

$000

14,730,0005,625,000

15,145,0008,000,0003,650,000

000

1,524,0500000

50,000$47,080,448 $48,724,050

TABLE 8


SPECIAL ASSESSMENT COLLECTIONS


(Unaudited)

Current CurrentFiscal assessments assessmentsyear billed collected

1996 $6,751,067 $5,924,7311997 $6,777,001 $6,223,6361998 $7,345,942 $7,607,9761999 $7,806,678 $7,280,3392000 $11,288,376 * $10,843,7682001 $12,098,838 $11,340,2232002 $12,622,286 $12,157,7942003 $12,953,773 $12,586,9432004 $16,877,620 $16,260,0942005 $17,630,557 $17,288,061

Note: The above amounts are comprised of collections from the MunicipServices Taxing Unit, the Navarre Beach Fire District, the Fire ProtectionFund, E-911 Operations and Santa Rosa Island Authority-MSBU

*Effective October 1, 1999, the Fire Protection MSBU rate was increasefrom $32 to $50 for a single-family residence, a 56% increase.

103

TABLE 8


SPECIAL ASSESSMENT COLLECTIONS


Fiscalyear

1996199719981999200020012002200320042005

(Unaudited)

Currentassessments

billed

$6,751,067$6,777,001$7,345,942$7,806,678

$11,288,376$12,098,838$12,622,286$12,953,773$16,877,620$17,630,557

Currentassessments

collected

$5,924,731$6,223,636$7,607,976$7,280,339

$10,843,768$11,340,223$12,157,794$12,586,943$16,260,094$17,288,061

Note: The above amounts are comprised of collections from the MuniciServices Taxing Unit, the Navarre Beach Fire District, the Fire ProtectioFund, E-911 Operations and Santa Rosa Island Authority-MSBU

*Effective October 1, 1999, the Fire Protection MSBU rate was increasefrom $32 to $50 for a single-family residence, a 56% increase.

103

TABLE 9


REVENUE BOND COVERAGE - CIVIC CENTERENTERPRISE BOND FUNDS


(Unaudited)

Net revenueFiscal Gross Operating available for Debt service requirementYear revenue (2) expenses (3) debt service (1) Principal Interest (4) Total Coverage

1996 $2,921,460 $1,939,381 $982,079 $230,000 $352,563 $582,563 1.691997 $4,429,859 $2,556,546 $1,873,313 $235,000 $342,678 $577,678 3.241998 $4,269,790 $2,059,011 $2,210,779 $250,000 $331,758 $581,758 3.801999 $3,557,183 $2,493,250 $1,063,933 $260,000 $318,985 $578,985 1.842000 $5,376,114 $3,576,146 $1,799,968 $270,000 $350,123 $620,123 2.902001 $4,543,189 $3,464,884 $1,078,305 $285,000 $335,760 $620,760 1.742002 $3,653,545 $3,275,426 $378,119 $300,000 $308,853 $608,853 0.622003* $9,652,196 $3,696,586 $5,955,610 $4,650,000 $185,161 $4,835,161 1.232004* N/A N/A N/A N/A N/A N/A N/A2005* N/A N/A N/A N/A N/A N/A N/A

NOTE:

(1) Tourist Development Serial and Term Bonds issued December 1, 1987 for $6,300,000. Refunded for $6,915,000, dated September 1, 1992.

(2) Operating revenue, other revenue and transfers in.

(3) Operating expense other than interest on debt, depreciation and amortization.

(4) Includes interest paid.

*Note - During FY03 the Revenue Bonds were refunded by the Tourist Development Bonds Series 2002. These new bonds are now being carried as a governmental-type bond.

104

TABLE 9


REVENUE BOND COVERAGE - CIVIC CENTERENTERPRISE BOND FUNDS


(Unaudited)

Net revenueFiscal Gross Operating available for Debt service requirementYear revenue (2) expenses (3) debt service (1) Principal Interest (4) Total Coverage

1996 $2,921,460 $1,939,381 $982,079 $230,000 $352,563 $582,563 1.691997 $4,429,859 $2,556,546 $1,873,313 $235,000 $342,678 $577,678 3.241998 $4,269,790 $2,059,011 $2,210,779 $250,000 $331,758 $581,758 3.801999 $3,557,183 $2,493,250 $1,063,933 $260,000 $318,985 $578,985 1.842000 $5,376,114 $3,576,146 $1,799,968 $270,000 $350,123 $620,123 2.902001 $4,543,189 $3,464,884 $1,078,305 $285,000 $335,760 $620,760 1.742002 $3,653,545 $3,275,426 $378,119 $300,000 $308,853 $608,853 0.622003* $9,652,196 $3,696,586 $5,955,610 $4,650,000 $185,161 $4,835,161 1.232004* N/A N/A N/A N/A N/A N/A N/A2005* N/A N/A N/A N/A N/A N/A N/A

NOTE:

(1) Tourist Development Serial and Term Bonds issued December 1, 1987 for $6,300,000.Refunded for $6,915,000, dated September 1, 1992.

(2) Operating revenue, other revenue and transfers in.

(3) Operating expense other than interest on debt, depreciation and amortization.

(4) Includes interest paid.

*Note - During FY03 the Revenue Bonds were refunded by the Tourist Development Bonds Series 2002. These new bonds are now being carried as agovernmental-type bond.

104

TABLE 10


DEMOGRAPHIC STATISTICS


(Unaudited)

UnemploymentFiscal Per capita School Percentage Medianyear Population (1) income (2) enrollment (3) rate (4) age (2)

1996 280,900 $18,509 47,748 5.0% 33.51997 286,301 $18,639 46,248 4.0% 34.01998 291,135 $19,253 44,648 4.2% 34.61999 296,164 $21,638 44,742 3.6% 34.82000 301,613 * $22,441 45,165 3.5% 35.12001 294,410 $24,487 43,508 3.8% 35.42002 296,709 $25,359 43,319 3.8% 35.42003 297,280 $26,230 42,944 4.0% 352004 300,959 $21,295 43,142 3.5% 362005 304,731 $26,503 43,083 3.6% 36.6

Sources:(1) Florida Legislative Committee on Intergovernmental Relations (Source: www.fcn.state.fl.us/lcir/estimates )

(2) Pensacola Chamber of Commerce (Source: University of West Florida Haas Center)

(3) Escambia County School District, Pensacola, Florida (Source: Escambia School Board Budget Department)

(4) Labor Market Information Labor Market Statitistics (State of Florida)

* This figure was an estimation based on the anticipated 2000 census results.

105

Fiscalyear

1996199719981999200020012002200320042005

Sources:

Population (1)

280,900286,301291,135296,164301,613 *294,410296,709297,280300,959304,731


DEMOGRAPHIC STATISTICS


Per capitaincome (2)

$18,509$18,639$19,253$21,638$22,441$24,487$25,359$26,230$21,295$26,503

(Unaudited)

Schoolenrollment (3)

47,74848,24844,64844,74245,18543,50843,31942,94443,14243,083

(1) Florida Legislative Committee on Intergovernmental Relations(Source: www.fcn.state.fl.us/lcir/estimates)

(2) Pensacola Chamber of Commerce(Source: University of West Florida Haas Center)

(3) Escambia County School District, Pensacola, Florida(Source: Escambia School Board Budget Department)

(4) Labor Market InformationLabor Market Statitistics (State of Florida)

* This figure was an estimation based on the anticipated 2000 census results.

105

UnemploymentPercentage

rate (4)

5.0%4.0%4.2%3.6%3.5%3.8%3.8%4.0%3.5%3.6%

TABLE 10

Medianage (2)

33.534.034.634.835.135.435.43536

36.6


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS


(Unaudited)

Commercial ResidentialConstruction (1) Construction (1) Assessed property value (3)

Fiscal Number Number Bank deposits (2) Totalyear of Permits Value of units Value (in thousands) Commercial Residential Other (4) non-exempt Exempt

1996 160 $30,466,727 2,548 $174,388,336 $2,174,967 $1,177,602,740 $2,974,731,980 $186,966,470 $4,339,301,190 $4,205,158,1501997 242 $48,810,935 2,565 $156,490,686 $2,167,786 $1,197,867,170 $3,065,967,870 $183,352,870 $4,447,187,910 $4,251,813,2401998 170 $60,379,912 1,922 $131,189,646 $2,431,851 $1,263,252,180 $3,491,493,360 $203,117,850 $4,957,863,390 $4,816,063,2101999 233 $114,281,178 1,859 $138,809,008 $2,492,956 $1,392,554,800 $3,834,057,270 $211,949,870 $5,438,561,940 $5,403,299,6302000 161 $93,395,963 1,795 $137,967,235 $2,605,174 $1,555,377,130 $4,529,524,834 $216,001,140 $6,306,600,794 $5,921,972,7562001 98 $139,613,959 1,766 $133,486,782 $2,576,000 $1,642,142,290 $4,984,898,442 $237,399,005 $6,861,406,007 $6,043,943,1932002 1,170 $295,355,073 1,889 $206,560,069 $2,622,000 $1,653,677,610 $5,358,150,292 $241,740,610 $7,235,640,132 $6,195,466,0382003 1,165 $402,131,370 2,210 $280,371,488 $3,063,000 $1,781,301,980 $5,848,440,689 $272,803,070 $7,876,938,179 $4,143,391,9012004 1,345 $453,391,390 2,174 $278,137,749 $3,120,000 $2,031,851,230 $6,718,505,724 $919,931,085 $9,642,745,719 $5,911,631,6912005 151 $285,068,060 1,976 $270,398,411 $4,081,000 $2,077,461,070 $7,274,104,148 $316,411,755 $9,707,032,263 $2,519,074,592

Source: (1) Data provided by Escambia County Building Inspections Department.

(2) FDIC, information is as of June 30, 2004

(3) Value and number of parcels on the real property assessment roll by category schedule, prepared by Escambia County Property Appraiser. (Taxable value for operating purposes basis.)

(4) Agricultural, institutional, leasehold interests, government, miscellaneous and non-agricultural acreage.

106

Fiscalyear

1996199719981999200020012002200320042005

Source:

CommercialConstruction (1)


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS

ResidentialConstruction (1)

Numberof Permits

16024217023316198

1,1701,1651,345151

Value

$30,466,727$48,810,935$60,379,912

$114,281,178$93,395,963

$139,613,959$295,355,073$402,131,370$453,391,390$285,068,060

Numberof units

2,5482,5651,9221,8591,7951,7661,8892,2102,1741,976

Value

$174,388,336$156,490,686$131,189,646$138,809,008$137,967,235$133,486,782$206,560,069$280,371,488$278,137,749$270,398,411

(1) Data provided by Escambia County Building Inspections Department.

(2) FDIC, information is as of June 30,2004


(Unaudited)

Bank deposits (2)(in thousands)

$2,174,967$2,167,786$2,431,851$2,492,956$2,605,174$2,576,000$2,622,000$3,063,000$3,120,000$4,081,000

Assessed property value (3)

TABLE 11

Commercial

$1 ,177,602,740$1 ,197,867,170$1,263,252,180$1 ,392,554,800$1 ,555,377,130$1 ,642,142,290$1 ,653,677,610$1,781,301,980$2,031 ,851,230$2,077,461,070

Residential

$2,974,731,980$3,065,967,870$3,491 ,493,360$3,834,057,270$4,529,524,834$4,984,898,442$5,358,150,292$5,848,440,689$6,718,505,724$7,274,104,148

(3) Value and number of parcels on the real property assessment roll by category schedule, prepared by Escambia County Property Appraiser.(Taxable value for operating purposes basis.)

(4) Agricultural, institutional, leasehold interests, government, miscellaneous and non-agricultural acreage.

106

Other (4)

$186,966,470$183,352,870$203,117,850$211,949,870$216,001,140$237,399,005$241,740,610$272,803,070$919,931,085$316,411,755

Totalnon-exempt

$4,339,301 ,190$4,447,187,910$4,957,863,390$5,438,561 ,940$6,306,600,794$6,861 ,406,007$7,235,640,132$7,876,938,179$9,642,745,719$9,707,032,263

Exempt

$4,205,158,150$4,251 ,813,240$4,816,063,210$5,403,299,630$5,921 ,972,756$6,043,943,193$6,195,466,038$4,143,391 ,901$5,911,631,691$2,519,074,592

TABLE 12


PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2005

(Unaudited)

PercentageAssessed value Amount paid of tax levy

Gulf Power Company $411,317,770 $7,594,817 * 3.23 %

International Paper $240,089,770 $3,833,903 2.32 %

Solutia, Inc. $136,173,060 $2,395,053 1.77 %

Bell South Telecommunication $101,777,880 $1,941,640 * 0.87 %

West Florida Regional Medical Center $70,489,300 $1,270,819 0.94 %

Cox Communications $52,086,090 $948,961 * 0.85 %

Simon Debartolo Group $42,510,640 $898,902 * 0.45 %

Walmart $41,085,600 $837,065 0.49 %

WCI Communities Inc. $39,395,950 $698,293 * 0.34 %

Cordova Community $26,863,490 $575,289 * 0.32 %

Grand Total $1,161,789,550 $20,994,742

NOTE: Discrepancies between taxes paid and assessed value occur due to payment dates involving discounts and/or penalties and industrial exemptions where applicable. Taxes paid followed by an * include city millage.

SOURCE: Escambia County Tax Roll compiled by the Escambia County Property Appraiser and tangible personal property records on file in the Escambia County Tax Collector's office.

107

TABLE 12


PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2005

(Unaudited)

PercentageAssessed value Amount paid of tax levy

Gulf Power Company

International Paper

Solutia, lnc.

Bell South Telecommunication

West Florida Regional Medical Center

$411,317,770

$240,089,770

$136,173,060

$101,777,880

$70,489,300

$7,594,817 * 3.23 %

$3,833,903

$2,395,053

$1,941,640

$1,270,819

2.32

1.77

0.87

0.94

%

%

%

%

CoxCommunications $52,086,090 $948,961 * 0.85 %

Simon Debartolo Group $42,510,640 $898,902 * 0.45 %

Walmart $41,085,600 $837,065 0.49 %

WCI Communities Inc. $39,395,950 $698,293 * 0.34 %

Cordova Community $26,863,490 $575,289 * 0.32 %

Grand Total $1 ,161 ,789,550 $20,994,742

NOTE: Discrepancies between taxes paid and assessed value occur due to payment datesinvolving discounts and/or penalties and industrial exemptions where applicable.Taxes paid followed by an * include city millage.

SOURCE: Escambia County Tax Roll compiled by the Escambia County Property Appraiserand tangible personal property records on file in the Escambia CountyTax Collector's office.

107

TABLE 13


MAJOR EMPLOYERS

(Unaudited)

Number ofCompany Product employees

Local government Government services 15,790 *Federal government Government services 7,403 *State of Florida Government services 5,970Sacred Heart Health System Health care service 3,500Baptist Health Care Health care service 3,470University of West Florida Education 2,267Solutia, Inc. Nylon fiber/chemicals 1,800Lakeview Health care service 1,500Gulf Power Company Electric utility 1,400West Florida Hospital Health care service 1,200Navy Federal Credit Union Financial services 1,100Pensacola Christian College School and publishing 1,078International Paper Paper products 900Pensacola Junior College Education 770West Corporation Broadband wireless support 750Medical Center Clinic Health care service 725Network Telephone Communications services 582ECUA Public utilities 510SMG Food Services Entertainment and food services 475Santa Rosa Medical Center, Inc. Health care service 450CitiFinancial Financial services 433CHCS Services, Inc. Insurance claims 408Pensacola News Journal Newspaper 406Wayne Dalton Corporation Garage door manufacturer 400Armstrong World Industries Acoustical ceiling 300TRX, Incorporated Online fulfillment 300The Wackenhut Corporation Security guard and patrol services 250

SOURCE: Pensacola Chamber of Commerce

* This figure includes all government employees in both Santa Rosa and Escambia Counties (Pensacola MSA) including both County's School Boards.

108

TABLE 13


MAJOR EMPLOYERS

Company

(Unaudited)

ProductNumber ofemployees

Local governmentFederal governmentState of FloridaSacred Heart Health SystemBaptist Health CareUniversity of West FloridaSolutia, Inc.LakeviewGulf Power CompanyWest Florida HospitalNavy Federal Credit UnionPensacola Christian CollegeInternational PaperPensacola Junior CollegeWest CorporationMedical Center ClinicNetwork TelephoneECUASMG Food ServicesSanta Rosa Medical Center, Inc.CitiFinancialCHCS Services, Inc.Pensacola News JournalWayne Dalton CorporationArmstrong World IndustriesTRX, IncorporatedThe Wackenhut Corporation

Government servicesGovernment servicesGovernment servicesHealth care serviceHealth care serviceEducationNylon fiber/chemicalsHealth care serviceElectric utilityHealth care serviceFinancial servicesSchool and publishingPaper productsEducationBroadband wireless supportHealth care serviceCommunications servicesPublic utilitiesEntertainment and food servicesHealth care serviceFinancial servicesInsurance claimsNewspaperGarage door manufacturerAcoustical ceilingOnline fulfillmentSecurity guard and patrol services

SOURCE: Pensacola Chamber of Commerce

15,790 *7,403 *5,9703,5003,4702,2671 ,8001 ,5001 ,4001 ,2001,1001 ,078

900770750725582510475450433408406400300300250

* This figure includes all government employees in both Santa Rosa and Escambia Counties(Pensacola MSA) including both County's School Boards.

108

TABLE 14


SPECIAL TAX COLLECTIONS


(Unaudited)

Local OptionFiscal Local Option 1/2 Cent Local Option Infrastructure SalesYear Tourist Tax (1) Sales Tax Gas Tax (2) Surtax (3) Total

1996 $2,446,325 $14,555,787 $6,486,024 $23,470,551 $46,958,6871997 $3,252,203 $14,795,651 $6,525,632 $23,520,634 $48,094,1201998 $3,292,209 $15,472,523 $6,509,218 $24,406,953 $49,680,9031999 $3,019,965 $16,357,676 $6,629,389 $26,627,130 $52,634,1602000 $2,774,474 $17,009,339 $6,756,194 $27,501,268 $54,041,2752001 $3,784,756 $16,695,742 $6,653,803 $27,588,432 $54,722,7332002 $3,930,893 $18,174,776 $6,889,022 $28,337,618 $57,332,3082003 $4,338,875 $18,662,958 $6,612,220 $29,642,829 $59,256,8822004 $4,767,723 $19,478,506 $6,952,619 $30,496,142 $61,694,9892005 $4,135,528 $22,097,935 $7,345,534 $37,881,076 $71,460,073

Note 1 - Additional one-cent tax in effect May 1996 - April 1999 and August 1, 2000 to present. Note 2 - The Local Option Gas Tax became effective September 1, 1986.

Note 3 - The Local Option Infrastructure Sales Tax became effective June 1, 1992.

109

FiscalYear

Local OptionTourist Tax (1)


SPECIAL TAX COLLECTIONS


1/2 CentSales Tax

(Unaudited)

Local OptionGas Tax (2)

Local OptionInfrastructure Sales

Surtax (3)

TABLE 14

Total

1996199719981999200020012002200320042005

$2,446,325$3,252,203$3,292,209$3,019,965$2,774,474$3,784,756$3,930,893$4,338,875$4,767,723$4,135,528

$14,555,787$14,795,651$15,472,523$16,357,676$17,009,339$16,695,742$18,174,776$18,662,958$19,478,506$22,097,935

$6,486,024$6,525,632$6,509,218$6,629,389$6,756,194$6,653,803$6,889,022$6,612,220$6,952,619$7,345,534

$23,470,551$23,520,634$24,406,953$26,627,130$27,501,268$27,588,432$28,337,618$29,642,829$30,496,142$37,881,076

$46,958,687$48,094,120$49,680,903$52,634,160$54,041,275$54,722,733$57,332,308$59,256,882$61,694,989$71,460,073

Note 1 - Additional one-cent tax in effect May 1996 - April 1999 and August 1, 2000 to present.

Note 2 - The Local Option Gas Tax became effective September 1, 1986.

Note 3 - The Local Option Infrastructure Sales Tax became effective June 1, 1992.

109

` Table 15ESCAMBIA COUNTY, FLORIDA

INSURANCE SCHEDULEFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package Blue Cross Blue Shield 5/1/05-09/30/05 97305 8,484,000.00

Employee Dental Package Delta Dental Services, Inc. 10/1/03-9/30/06 1440 520,000.00

Employee Life and AD&D Reliastar 10/01/04-09/30/07 629391 324,000.00

Long Term Disability National Insurance Services of WI 10/01/04-09/30/06 1173 132,000.00Underwritten by Madison National Ins.

Flexible Spending HCAP Straegies 10/01/04-09/30/06 12,000.00

Law Enforcement Statutory A. Downing Gray/ 1/1/03-06 ETB 105347 $157,126.50 20,969.00 Death Benefits The Hartford Group

Worker's Compensation Self Insured $550,000.00

Excess Worker's Compensation Lon Bryan & Company 1/1/05-06 MDB0266739 $550,000.00 Statutory Limits 220,000.00 Excess General Liability State National Insurance Co. 1mil/2mil

PROPERTY AND CASUALTY INSURANCE

BCC: Commercial Crime Policy Lon Bryan & Company 1/1/05-06 978-09-15 $5,000.00 $500,000.00 6,932.00Illinois National Insurance Co

Commercial Package - (TIV $272,08Lon Bryan & Company $100,000.00 $10M CRC/Lloyds Underwriters 1/1/05-06 CRC-14158 $10,000,000.00 746,500.00 $5m Excess of $10m CRC/Essex Ins. Co. 1/1/05-06 ESP2820 $15,000,000.00 75,000.00 $5m Excess of $15m CRC/Great American E&S Ins 1/1/05-06 CGP5849347 $20,000,000.00 54,417.00 $5m Excess of $20m CRC/Traders & Pacific Ins. Co1/1/05-06 X7XSP1295 $25,000,000.00 36,000.00 $175m Excess of $25m CRC/Landmark American Ins. 1/1/05-06 LDH338689 $200,000,000.00 92,509.00

1,004,426.00

Boiler and Machinery Lon Bryan & Company 1/1/05-06 FBP-2286547 $10,000.00 $50,000.00 21,734.00Hartford SteamBoiler or 10% (>)

Bob Sikes Bridge/SR Sound Bridge Department of Transportation 7/1/05-7/1/06 Structure #4801139 $25,000.00 100,000,000/Blanket 32,883.00and #480123 or 1% (>) 100,000,000/Excess

110

ESCAMBIA COUNTY, FLORIDAINSURANCE SCHEDULE


Table 15

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package

Employee Dental Package

Employee Life and AD&D

Long Term Disability

Flexible Spending

Law Enforcement StatutoryDeath Benefits

Worker‘s Compensation

Excess Worker‘s CompensationExcess General Liability

Blue Cross Blue Shield 5/1/05-09/30/05

Delta Dental Sen/ices, Inc. 10/1/03-9/30/06

Reliastar 10/01/04-09/30/07

National Insurance Services of WI 10/01/04-09/30/06UndenNritten by Madison National Ins.

HCAP Straegies 10/01/04-09/30/06

A. Downing Gray/ 1/1/03-06The Hartford Group

Self Insured

Lon Bryan & Company 1/1/05-06State National Insurance Co.


BCC: Commercial Crime Policy Lon Bryan & Company 1/1/05-06Illinois National Insurance Co

Commercial Package - (TIV $272,0£ Lon Bryan & Company$10M$5m Excess of $10m$5m Excess of $15m$5m Excess of $20m$175m Excess of $25m

Boiler and Machinery

CRC/Lloyds UndenNriters 1/1/05-06CRC/Essex Ins. Co. 1/1/05-06CRC/Great American E&S Ins 1/1/05-06CRC/Traders & Pacific Ins. Cc 1/1/05-06CRC/Landmark American Ins. 1/1/05-06

Lon Bryan & Company 1/1/05-06Hartford SteamBoiIer

Bob Sikes Bridge/SR Sound Bridge Department of Transportation 7/1/05-7/1/06

97305

1440

629391

1173

ETB 105347

MDB0266739

978-09-15

CRC-14158ESP2820CGP5849347X7XSP1295LDH338689

FBP-2286547

Structure #4801139and #480123

$550,000.00

$5,000.00

$100,000.00

$10,000.00or 10% (>)

$25,000.00or 1% (>)

110

$157,126.50

$550,000.00

Statutory Limits1mi|/2mi|

$500,000.00

$10,000,000.00$15,000,000.00$20,000,000.00$25,000,000.00$200,000,000.00

$50,000.00

100,000,000/Blanket100,000,000/Excess

8,484,000.00

520,000.00

324,000.00

132,000.00

12,000.00

20,969.00

220,000.00

6,932.00

746,500.0075,000.0054,417.0036,000.0092,509.00

1,004,426.00

21,734.00

32,883.00

` Table 15ESCAMBIA COUNTY, FLORIDA (Continued)

INSURANCE SCHEDULEFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005 (CONTINUED)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMFLOOD & WINDSTORM INSURANCE

C&P Bank Building Lon Bryan & Company 12/01/04-05 6500354995 (B) $500.00 (B) $250,000.00 2,096.00213 Palafox PL Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Courthouse & Annex Lon Bryan & Company 10/04/04-05 6500277840 (B) $500.00 (B) $250,000.00 3,413.00223 S. Palafox Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Judicial Building Lon Bryan & Company 10/04/04-05 6500277832 (B) $500.00 (B) $250,000.00 2,096.00190 W. Government St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Property Appraiser Lon Bryan & Company 10/04/04-05 6500277865 (B) $500.00 (B) $250,000.00 2,142.00213 West Garden St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

USO Building Lon Bryan & Company 07/27/05-06 6500216798 (B) $500.00 (B) $84,000.00 1,809.0025 S. Spring St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Booking & Detention Lon Bryan & Company 10/07/04-05 6500277873 (B) $500.00 (B) $250,000.00 2,096.001200 West Leonard St. Travelers Property & Casualty (B) $500.00 (C) $250,000.00

Old Heath Dpt/Public Defenders Lon Bryan & Company 03/06/05-06 6500406662 (B) $500.00 (B) $250,000.00 3,413.002251 North Palafox St. Travelers Property & Casualty (C) 0 (C) $250,000.00

Sheriffs Sub-Station Lon Bryan & Company 12/30/04-05 6500359150 (B) $500.00 (B) $348,000.00 4,969.0041 Ft. Pickens Rd. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Old Orvis (Ordon's) Bldg Lon Bryan & Company 04/12/05-06 6500677452 (B) $500.00 (B) $250,000.00 910.00201/207 South Palafox St. Travelers Property & Casualty (C) 0

Facilities Management Lon Bryan & Company 08/04/05-06 6004401664 (B) $500.00 (B) $500,000.00 2,573.00100/120 East Blount Travelers Property & Casualty (C) 0 (C) 0

Sheriffs Sub-Station - WINDSTORM Lon Bryan & Company 11/30/04-05 353438 (B) $12,150.00 (B) $405,000.00 1,227.0041 Ft. Pickens Rd. Citizens Property Insurance Corp

Santa Rosa Toll Booth Lon Bryan & Company 10/16/04-05 6500316960 (B) $500.00 (B) $500,000.00 1,081.00451 Pensacola Blvd Travelers Property & Casualty (C) $500.00 (C) $281,700.00

Santa Rosa Toll Booth - WINDSTORMLon Bryan & Company 10/15/04-05 1119917 (B) $21,546.00 (B) $718,212.00 2,141.00451 Pensacola Blvd Citizens Property Insurance Corp (C) $8,453.00 (C) $281,788.00

111


FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2005 (CONTINUED)

Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMFLOOD & WINDSTORM INSURANCE

C&P Bank Building213 Palafox PL

Courthouse & Annex223 S. Palafox

Judicial Building190 W. Government St.

Property Appraiser213 West Garden St.

USO Building25 S. Spring St.

Booking & Detention1200 West Leonard St.

Old Heath Dpt/Public Defenders2251 North Palafox St.

Sheriffs Sub-Station41 Ft. Pickens Rd.

Old Orvis (Ordon‘s) Bldg201/207 South Palafox St.

Facilities Management100/120 East Blount

Sheriffs Sub-Station - WINDSTORM41 Ft. Pickens Rd.

Santa Rosa Toll Booth451 Pensacola Blvd

Santa Rosa Toll Booth - WINDSTORN Lon Bryan & Company451 Pensacola Blvd

Lon Bryan & Company 12/01/04-05Travelers Property & Casualty










Lon Bryan & Company 11/30/04-05Citizens Property Insurance Corp


10/15/04-05Citizens Property Insurance Corp

6500354995

6500277840

6500277832

6500277865

6500216798

6500277873

6500406662

6500359150

6500677452

6004401664

353438

6500316960

1119917

(B) $500.00(C) $500.00

(B) $500.00(C) $500.00

(B) $500.00(C) $500.00

(B) $500.00(C) $500.00

(B) $500.00(C) $500.00

(B) $500.00(B) $500.00

(B) $500.00(C) 0

(B) $500.00(C) $500.00

(B) $500.00

(B) $500.00(C) 0

(B) $12,150.00

(B) $500.00(C) $500.00

(B) $21,546.00(C) $8,453.00

111

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $84,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $250,000.00(C) $250,000.00

(B) $348,000.00(C) $250,000.00

(B) $250,000.00(C) 0

(B) $500,000.00(C) 0

(B) $405,000.00

(B) $500,000.00(C) $281,700.00

(B) $718,212.00(C) $281,788.00

2,096.00

3,413.00

2,096.00

2,142.00

1,809.00

2,096.00

3,413.00

4,969.00

910.00

2,573.00

1,227.00

1,081.00

2,141.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMBONDS

Public Official Dist 1 Fisher Brown/ 5/10/02-11/16/04 POB8526338 $0.00 $2,000.00 109.00Clifford Barnhart Fidelity & Deposit

Public Official Dist 1 Fisher Brown/ 11/16/04-11/18/08 POB8783258 $0.00 $2,000.00 355.00Mike Whitehead Fidelity & Deposit

Public Official Dist 2 Fisher Brown/ 11/19/02-11/20/06 POB8526374 $0.00 $2,000.00 121.00Bill Dickson Fidelity & Deposit

Public Official Dist 3 Fisher Brown/ 11/16/04-11/18/08 POB8526340 $0.00 $2,000.00 355.00Marie Young Fidelity & Deposit

Public Official Dist 4 Fisher Brown/ 11/19/02-11/20/06 POB8117136 $0.00 $2,000.00 121.00Thomas Banjamin Fidelity & Deposit

Public Official Dist 5 Fisher Brown/ 5/10/02-11/16/04 POB8526341 $0.00 $2,000.00 109.00Janice Gilley Fidelity & Deposit

Public Official Dist 5 Fisher Brown/ 11/16/04-11/18/08 POB8526360 $0.00 $2,000.00 355.00Kevin W. White Fidelity & Deposit

Overweight Penalty Fisher Brown/ 8/22/05-06 400MA6122 $0.00 $10,000.00 100.00USF&G

112

INSURANCE SCHEDULEESCAMBIA COUNTY, FLORIDA


Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMBONDS

Public Official Dist 1Clifford Barnhart

Public Official Dist 1Mike Whitehead

Public Official Dist 2Bill Dickson

Public Official Dist 3Marie Young

Public Official Dist 4Thomas Banjamin

Public Official Dist 5Janice Gilley

Public Official Dist 5Kevin W. White

Overweight Penalty

Fisher Brown/Fidelity & Deposit







Fisher Brown/USF&G

5/10/02-11/16/04

11/16/04-11/18/08

11/19/02-11/20/06

11/16/04-11/18/08

11/19/02-11/20/06

5/10/02-11/16/04

11/16/04-11/18/08

8/22/05-06

P088526338

POBB783258

P088526374

P088526340

POBB117136

P088526341

P088526360

400MA6122

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

112

$2,000.00 109.00

$2,000.00 355.00

$2,000.00 121.00

$2,000.00 355.00

$2,000.00 121.00

$2,000.00 109.00

$2,000.00 355.00

$10,000.00 100.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMECAT, ELECTED OFFICALS, AND MISC.EMPLOYEE RELATED INSURANCE

Volunteers Death and CIMA 07/01/05-06 5P5900304 None $25,000.00 $7,940.00Dismemberment and Medical

ECAT - ATC/VANCOM Fisher BrownECAT Workers' Comp Bridgefield Employers Reinsur12/01/04-05 BEI 0830-25835-0000None Statutory $202,650.00ECAT Employers Liability Group TraCAN Insurance Company 07/08/04-05 SR-83096773 $1,000.00ECAT - ERISA Bond Travelers Indemnity Company 10/31/04-05 35BZ1032386928CM $128.00


Third Party Pollution Liability (VFD) FPLIPA/Commerce & Industry 10/01/04-05 FLP4808684#1 $5,000.00 $1,000,000/$1,000,00 $1,139.00

Third Party Pollution Liability (Count FPLIPA/Commerce & Industry 10/01/04-05 FPL1953729#2 $5,000.00 $1,000,000/$2,000,00 $4,543.00

ECAT: Required Liability Southeast Specialty UnderwritersECAT: Commercial General LiabilityNational Interstate Insurance C07/01/04-05 CRTGLF098121 $10,000,000.00 $18,036.00ECAT: Automobile Liability National Interstate Insurance C07/01/04-05 CRTCAF097923 $5,000.00 $10,000,000.00 $366,708.00ECAT: Garage Liability Colony Insurance Company 07/01/04-05 CP3033075 $1,000,000.00 $7,047.00ECAT: Garage Keepers Legal Liabi Essex Insurance Company 07/01/04-05 5CA0336 $5,000.00 $500,000.00 $12,552.00

WILDLIFE: Commercial General LiaHiles-McLeod Insurance, Inc. 01/08/05-06 535B001293 $0.00 $1,000,000.00 $978.00Burlington Insurance Company

BONDS

Clerk of the Courts Fisher Brown/ 1/4/05-1/5/09 POB8526407 $0.00 $50,000.00 $685.00Ernie Lee Magaha Fidelity & Deposit

Clerk Honesty & Faithful Holloway Insurance/Performance Blanket Fidelity & Deposit 9/30/04-9/30/07 CCP-001367803 $0.00 $5,000.00 $1,565.00

Property Appraiser Fisher Brown/ 1/4/05-1/5/09 POB8526408 $0.00 $25,000.00 $355.00Chris Jones USF&G

Tax Collector Fisher Brown/ 1/1/05-1/5/09 POB8783271 $0.00 $50,000.00 $685.00Janet Holley Fidelity & DepositPublic Official Bond

Tax CollectorEmployee Honesty & Holloway Insurance/ 2/16/05-2/16/09 18244320 $0.00 $50,000.00 $1,059.24Faithful Perf. Bond Western Surety/C N A

Tax CollectorCommercial Crime Policy Fisher Brown/ 8/1/05-7/31/07 21BPEDN6609 $0.00 $50,000.00 $4,294.00Faithful Performance Blanket The Hartford

113



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMECAT ELECTED OFFICALS AND MISC.EMPLOYEE RELATED INSURANCE

Volunteers Death andDismemberment and Medical

ECAT - ATCNANCOMECAT Workers‘ CompECAT Employers Liability Group Tre CAN Insurance CompanyECAT - ERISA Bond

CIMA

Fisher Brown

07/01/05-06

Bridgefield Employers Reinsur12/O1/04-0507/08/04-05

Travelers Indemnity Company 10/31/04-05


Third Party Pollution Liability (VFD) FPLIPA/Commerce & Industry 10/01/04-05

Third Party Pollution Liability (Count FPLIPA/Commerce & Industry 10/01/04-05

ECAT: Required Liability

ECAT: Automobile LiabilityECAT: Garage LiabilityECAT: Garage Keepers Legal Liabi Essex Insurance Company

Southeast Specialty UnderwritersECAT: Commercial General LiabilityNationaI Interstate Insurance (07/01/04-05

National Interstate Insurance (07/01/04-05Colony Insurance Company 07/01/04-05

07/01/04-05

WILDLIFE: Commercial General LizHiIes-McLeod Insurance, Inc. 01/08/05-06Burlington Insurance Company

BONDS

Clerk of the CourtsErnie Lee Magaha

Clerk Honesty & FaithfulPerformance Blanket

Property AppraiserChris Jones

Tax CollectorJanet HolleyPublic Official Bond

Tax CollectorEmployee Honesty &Faithful Perf. Bond

Tax CollectorCommercial Crime PolicyFaithful Performance Blanket


Holloway Insurance/Fidelity & Deposit

Fisher Brown/USF&G


Holloway Insurance/Western Surety/C N A

Fisher Brown/The Hartford

1/4/05-1/5/09

9/30/04-9/30/07

1/4/05-1/5/09

1/1 /05-1/5/09

2/16/05-2/16/09

8/1/05-7/31/07

5P5900304 None

BEI 0830-25835-OOOI NoneSR-8309677335821032386928CM

FLP4808684#1

FPL1953729#2

CRTGLF098121CRTCAF097923CP30330755CA0336

535B001293

POB8526407

COP-001367803

POB8526408

POB8783271

1 8244320

21BPEDN6609

$5,000.00

$5,000.00

$5,000.00

$5,000.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

113

$25,000.00

Statutory

$1,000,000/$1,000,0I

$1 ,000,000/$2,000,0I

$10,000,000.00$10,000,000.00$1,000,000.00$500,000.00

$1,000,000.00

$50,000.00

$5,000.00

$25,000.00

$50,000.00

$50,000.00

$50,000.00

$7,940.00

$202,650.00$1,000.00

$128.00

$1,139.00

$4,543.00

$18,036.00$366,708.00

$7,047.00$12,552.00

$978.00

$685.00

$1,565.00

$355.00

$685.00

$1,059.24

$4,294.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMVOLUNTEER FIRE DEPARTMENTSWORKER'S COMPENSATION

*VFDBellview Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Beulah Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Brent Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Cantonment Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Century Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Ensley Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Ferry Pass Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Innerarity Point Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00McDavid Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Molino Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Myrtle Grove Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Pensacola Beach Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Pleasant Grove Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Walnut Hill Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00Warrington Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00West Pensacola Whitman & Whitman Inc./PGIT 10/01/04 thru 09/30/05 10000000235103 $2,500 Statutory $7,656.00

*Accident & Health Whitman & Whitman, Inc 01/01/05 thru 01/01/06 1028613 $150,000.00 $14,142.00All Depts/ VFD Standard Security $150,000.00 -Death

CASUALTY INSURANCE

*Commercial Package Whitman & Whitman, Inc 01/01/05 thru 01/01/06 MEPK06206300 $152,018.00All Depts/ VFD Arch Insurance Company -Property (all locations) Agreed Value/$11,857,644 -Flood $1,000.00 $1,000,000/each location -Other including wind $250.00 $1,000,000/each location -Auto Policy -Physical Damage $100 $250 -Liability None - General Liability None -Professional

Inland Marine Whitman & Whitman, Inc 01/01/05 thru 01/01/06 MEIM06066200 $51,411.00All Depts/ VFD Arch Insurance Company per schedule -Portable Equipment 100 -Boats 100 -Auto Physical Damage $100 $250 Agreed Value (Fire Apparatus)

*Commercial Umbrella Whitman & Whitman, Inc 01/01/05 thru 01/01/06 MEUM06386400 $1,000,000.00 per occ.All Depts/ VFD Arch Insurance Company $1,000,000 aggregate $11,946.00

114



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMVOLUNTEER FIRE DEPARTMENTSWORKER'S COMPENSATION

*VFDBellviewBeulahBrentCantonmentCenturyEnsleyFerry PassInnerarity PointMcDavidMolinoMyrtle GrovePensacola BeachPleasant GroveWalnut HillWarringtonWest Pensacola

*Accident & HealthAll Depts/ VFD

-Death

CASUALTY INSURANCE

*Commercial PackageAll Depts/ VFD

-Property (all locations)-F|ood-Other including wind

-Auto Policy-Physical Damage-Liabi|ity

- General LiabilityProfessional

Inland MarineAll Depts/ VFD

-Portable Equipment-Boats-Auto Physical Damage

(Fire Apparatus)

*Commercial UmbrellaAll Depts/ VFD

Whitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGITWhitman & Whitman Inc./PGIT

Whitman & Whitman, IncStandard Security

Whitman & Whitman, IncArch Insurance Company



10/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/0510/01/04 thru 09/30/05

01/01/05 thru 01/01/06

10000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103

1028613

01/01/05 thru 01/01/06 MEPK06206300

01/01/05 thru 01/01/06 MEIM06066200

01/01/05 thru 01/01/06 MEUM06386400

$100 $250NoneNone

$100 $250

114

$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory$2,500 Statutory

$150,000.00$150,000.00

Agreed Value/$11,857,644$1,000.00 $1 ,000,000/each location

$250.00 $1 ,000,000/each location

per schedule100100

Agreed Value

$1,000,000.00 per occ.$1,000,000 aggregate

$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00$7,656.00

$14,142.00

$152,018.00

$51,411.00

$11,946.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMSANTA ROSA ISLAND AUTHORITYWINDSTORM COVERAGEVarious locations Molton, Allen & Williams 9/27/04-05 99530 3% various $18,108.00

Citizens Property Ins. Co.

BUSINESS AUTOMolton, Allen & Williams 10/01/04-05 C2022778756 (Com) $500.00 $1,000,000.00 $53,285.00Transportation Co. (Coll) $500.00

PROPERTY INSURANCEVarious locations Molton, Allen & Williams 10/01/04-05 C2022778773 $2,500.00 various $24,876.00

Continental Casualty Co.

NATIONAL FLOOD#1 Via DeLuna Drive Molton, Allen & Wms 12/11/04-05 99018616862004 $1,000.00 (B) 500,000 $1,585.00

The Hartford (C) 300,000

Maintenance Bldg 1 Molton, Allen & Wms 10/30/04-05 99017836372004 $1,000.00 (B) 300,000 $3,486.00The Hartford (C) 100,000

Visitor's Info Center Molton, Allen & Wms 1/22/04-05 99019002192005 $1,000.00 (B) 200,000 $820.00The Hartford (C) 50,000

Quietwater Rest Station #2 Molton, Allen & Wms 10/16/04-05 99017734182004 $1,000.00 (B) 100,000 $844.00The Hartford

Casino Beach Restrooms Molton, Allen & Wms Cancelled 99017734212003 $1,000.00 (B) 125,000 $1,032.00The Hartford No Structure

Maintenance Vehicle Shed Molton, Allen & Wms Cancelled 1477946002004 $1,000.00 (B) 150,000 $1,947.00Catawba Ins. Co. No Structure (C) 50,000

Quietwater Restrooms Molton, Allen & Wms 9/8/04-05 99017921872004 $1,000.00 (B) 100,000 $2,768.00The Hartford

Maintenance Bldg #3 Molton, Allen & Wms Cancelled 1484524002004 $1,000.00 (B) $80,000 $1,570.00Catawba Ins. Co. No Structure (C) $60,000

Ft. Pickens Restrooms Molton, Allen & Wms 8/30/04-05 99017836302004 $500.00 (B)225,000 $1,567.00Catawba Ins. Co.

BONDSEmployee Dishonesty Molton, Allen & Wms 10/01/04-05 21BPEBY6587 $10,000 $502.00

Hartford Ins. Co.

SRIA Public Officials Bonds:Vernon Prather Old Republic Surety Co. 12/9/04-continuous OFL0529022 $0.00 $10,000.00 $100.00Thomas E. Blas Old Republic Surety Co. 11/19/02-continuousOFL0474657 $0.00 $10,000.00 $100.00Thomas A. Campanella Old Republic Surety Co. 11/5/02-continuous OFL0474655 $0.00 $10,000.00 $100.00Jimmie Perkins Old Republic Surety Co. 10/17/02-continuousOFL0474656 $0.00 $10,000.00 $100.00William H. Griffith Old Republic Surety Co. 9/17/02-continuous OFL0474654 $0.00 $10,000.00 $100.00W. McGuire Martin Fidelity & Deposit Co. 11/4/02-11/1/06 POB8117145 $0.00 $10,000.00 $205.00

115

INSURANCE SCHEDULEESCAMBIA COUNTY, FLORIDA


Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMSANTA ROSA ISLAND AUTHORITYWINDSTORM COVERAGEVarious locations

BUSINESS AUTO

PROPERTY INSURANCEVarious locations

NATIONAL FLOOD#1 Via DeLuna Drive

Maintenance Bldg 1

Visitor's Info Center

Quietwater Rest Station #2

Casino Beach Restrooms

Maintenance Vehicle Shed

Quietwater Restrooms

Maintenance Bldg #3

Ft. Pickens Restrooms

BONDSEmployee Dishonesty

SRIA Public Officials Bonds:

Vernon PratherThomas E. BiasThomas A. CampanellaJimmie PerkinsWilliam H. GriffithW. McGuire Martin

Molton, Allen & WilliamsCitizens Property Ins. Co.

Molton, Allen & WilliamsTransportation Co.

Molton, Allen & WilliamsContinental Casualty Co.

Molton, Allen & WmsThe Hartford





Molton, Allen & WmsCatawba Ins. Co.




Molton, Allen & WmsHartford Ins. Co.

Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Fidelity & Deposit Co.

9/27/04-05

10/01/04-05

10/01/04-05

12/1 1/04-05

10/30/04-05

1/22/04-05

10/16/04-05

CancelledNo Structure


9/8/04-05


8/30/04-05

10/01/04-05

12/9/04-continuous

99530

C2022778756

C2022778773

99018616862004

99017836372004

99019002192005

99017734182004

99017734212003

1477946002004

99017921872004

1484524002004

99017836302004

21BPEBY6587

OFL052902211/19/02-continuous OFL047465711/5/02-continuous OFL047465510/17/02-continuous OFL04746569/17/02-continuous11/4/02-11/1/06

OFL0474654P0881 17145

3%

(Com) $500.00(Coll) $500.00

$2,500.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$1,000.00

$500.00

$0.00$0.00$0.00$0.00$0.00$0.00

115

vaflous

$1,000,000.00

various

(B) 500,000(C) 300,000

(B) 300,000(C) 100,000

(B) 200,000(C) 50,000

(B) 100,000

(B) 125,000

(B) 150,000(C) 50,000

(B) 100,000

(B) $80,000(C) $60,000

(B)225,000

$10,000

$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00

$18,108.00

$53,285.00

$24,876.00

$1,585.00

$3,486.00

$820.00

$844.00

$1,032.00

$1,947.00

$2,768.00

$1,570.00

$1,567.00

$502.00

$100.00$100.00$100.00$100.00$100.00$205.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMCIVIC CENTEREMPLOYEE RELATED INSURANCE

Pensacola Civic Center Aon Risk Services 7/1/04-7/1/05 WC7913918-10 None $1,000,000 $66,756.00Worker's Compensation Zurich American Ins Co. Statutory


Pensacola Civic Center/ Marsh 7/1/04-7/01/05 285-1891 None $5,000,000 see belowCommercial Umbrella Liability Lexington Insurance Company

Pensacola Civic Center/ Marsh 7/1/04-7/1/05 79544602 None $1,000,000 see belowCommercial General Liability Federal Insurance Co.

Business Automobile Liability Marsh 7/1/04-7/1/05 79544601 (AOS) None $1,000,000 see belowFederal Insurance Co. 7954-46-26 (TX)

TOTAL PREMIUM (1 POLICY): $57,420.00

Pensacola Civic Center/ Aon Risk Services 7/7/04-7/1/05 SAA5177660 $10,000.00 $1,000,000 $447.48Crime Insurance Great American Insurance Co.

INCLUDED IN COUNTY'S PACKAGE

Commercial Property Lon Bryan & Company 1/1/05-06 Inc. w/ County $100,000.00 $1,000,000 Inc. w/ CountyInc. w/ County

Flood Insurance Lon Bryan & Company 3/2/05-3/2/06 6500419822 (B) $500 $250,000 $2,096.00Travelers Property & Casualty (C) $500 $250,000

116



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBERCIVIC CENTEREMPLOYEE RELATED INSURANCE

Pensacola Civic Center Aon Risk Services 7/1/04-7/1/05 WC7913918-10Worker‘s Compensation Zurich American Ins Co.


Pensacola Civic Center/ Marsh 7/1/04-7/01/05 285-1891Commercial Umbrella Liability Lexington Insurance Company

Pensacola Civic Center/ Marsh 7/1/04-7/1/05 79544602Commercial General Liability Federal Insurance Co.

Business Automobile Liability Marsh 7/1/04-7/1/05 79544601 (AOS)Federal Insurance Co. 7954-46-26 (TX)

TOTAL PREMIUM (1 POLICY):

Pensacola Civic Center/ Aon Risk Services 7/7/04-7/1/05 SAA5177660Crime Insurance Great American Insurance Co.

INCLUDED IN COUNTY'S PACKAGE

Commercial Property Lon Bryan & Company 1/1/05-06 Inc. M CountyInc. M County

Flood Insurance Lon Bryan & Company 3/2/05-3/2/06 6500419822Travelers Property & Casualty

DEDUCTIBLE

None

None

None

None

$10,000.00

$100,000.00

(B) $500(C) $500

116

POLICY LIMITS

$1 ,000,000Statutory

$5,000,000

$1,000,000

$1,000,000

$1,000,000

$1 ,000,000

$250,000$250,000

05 PREMIUM

$66,756.00

see below

see below

see below

$57,420.00

$447.48

Inc. M County

$2,096.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMSHERIFF'S OFFICEPROPERTY & CASUALTY INSURANCE:

Sheriff's Auto Liability/Physical Damage Hunt Ins. Grp/Sharp 10/1/04-10/1/05 BA02A-17-87 None $100,000/person $454,923.00$200,000/occurrence$500,000 contingencies

Law Enforcement Professional Liability Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 02P-17-81 None $3,100,000/person $917,652.00$3,200,000/occurrence

Inmate Medical Excess Loss Hunt Ins. Grp/ 8/31/04-8/31/05 200-5191 None $250,000/person $107,493.00Lexington Insurance Co. $750,000/occurrence

Horse Accidental Death & Destruction Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 None $17,500 $350.00

Watercraft Liability Coverage Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 None Legal liability of operation $1,750.00

Watercraft Hull Coverage Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 $1000/claim $32,500 $813.00

Aircraft Liability Hunt Ins. Grp/ 11/5/04-11/5/05 ACN770338 None Physical Damage $10,010.00Westchester Fire Ins.

BONDS:

Sheriff Ron McNesby Excess Hunt Ins./FSSIF 10/1/04-10/1/05 03P-17-81 None $100,000/300,000 $25,000.00

Deputy Sheriff's Blanket Hunt Ins./Western 10/1/04-10/1/05 18258230 None $1000 Per Deputy $2,226.00Surety Deposit

Sheriff's Public Employee Blanket Hunt Ins./FSSIF 10/1/04-10/1/05 03P-17-81 $200/claim $50,000 $897.00

Sheriff's Broad Form Money & Hunt Ins./FSSIF 10/1/04-10/1/05 03P-17-81 $200/claim $10,000 $832.00Securities Coverage

Sheriff's Flash Roll Money Coverage Hunt Ins./FSSIF 10/1/04-10/1/05 03P-17-81 $5000/claim $50,000 $2,750.00

117

Table 15ESCAMBIA COUNTY, FLORIDA (Continued)


DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 05 PREMIUMSHERIFF'S OFFICEPROPERTY & CASUALTY INSURANCE:

Sheriff‘s Auto Liability/Physical Damage Hunt Ins. Grp/Sharp 10/1/04-10/1/05 BA02A-17-87 None $100,000/person $454,923.00$200,000/occurrence$500,000 contingencies

Law Enforcement Professional Liability Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 02P-17-81 None $3,100,000/person $917,652.00$3,200,000/occurrence

Inmate Medical Excess Loss Hunt Ins. Grp/ 8/31/04-8/31/05 200-5191 None $250,000/person $107,493.00Lexington Insurance Co. $750,000/occurrence

Horse Accidental Death & Destruction Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 None $17,500 $350.00

Watercraft Liability Coverage Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 None Legal liability of operatior $1,750.00

Watercraft Hull Coverage Hunt Ins. Grp/FSSIF 10/1/04-10/1/05 03P-17-81 $1000/claim $32,500 $813.00

Aircraft Liability Hunt Ins. Grp/ 11/5/04-11/5/05 ACN770338 None Physical Damage $10,010.00Westchester Fire Ins.

BONDS:

Sheriff Ron McNesby Excess Hunt Ins./FSSIF 10/1/04-10/1/05 03P-17-81 None $100,000/300,000 $25,000.00

Deputy Sheriff‘s Blanket Hunt Ins/Western 10/1/04-10/1/05 18258230 None $1000 Per Deputy $2,226.00Surety Deposit

Sheriff's Public Employee Blanket Hunt |ns./FSSIF 10/1/04-10/1/05 03P-17-81 $200/claim $50,000 $897.00

Sheriff's Broad Form Money & Hunt Ins./FSS|F 10/1/04-10/1/05 03P-17-81 $200/claim $10,000 $832.00Securities Coverage

Sheriff‘s Flash Roll Money Coverage Hunt lns./FSSIF 10/1/04-10/1/05 03P-17-81 $5000/claim $50,000 $2,750.00

117

CONTINUING DISCLOSURE SECTION

(Unaudited) The continuing disclosure section includes information on each outstanding bond, other county debt and refunded bonds.

CONTINUING DISCLOSURE SECTION

(Unaudited)

The continuing disclosure section includes information on each outstanding bond, other county debtand refunded bonds.

PLEDGED REVENUES

(Unaudited)

PLEDGEDREVENUES

(Unaudfled)

118

REVENUES PLEDGED TO BONDS BOB TOURIST SIKES CONSITUTIONAL HALF-CENT DEVELOPMENT LEASE YEAR BRIDGE GAS TAX SALES TAX TAX REVENUES 1986 $7,194,143 $702,296 1987 7,606,855 886,713 1988 8,994,282 1,102,545 1989 9,226,659 1,624,092 1990 $2,717,934 9,878,328 1,538,823 1991 2,637,060 9,684,913 1,620,017 1992 2,585,446 10,362,850 1,720,792 1993 2,670,116 11,394,208 1,827,822 1994 $1,345,920 2,561,665 11,932,144 1,909,283 1995 1,172,523 3,051,326 13,294,438 2,109,896 1996 1,295,335 2,857,933 14,555,787 2,446,325 1997 1,714,785 2,869,447 14,795,651 3,252,203 1998 1,472,784 3,009,212 15,472,523 3,292,209 1999 849,649 3,090,775 16,357,673 3,236,485 2000 1,312,361 3,160,798 17,009,339 2,774,474 2001 1,977,972 3,151,753 16,695,742 3,784,756 2002 1,988,431 3,113,561 18,174,275 3,930,893 2003 1,307,046 1,854,716 10,543,353 2,118,435 593,333 2004 1,854,835 3,284,504 19,478,506 3,575,792 600,000 2005 1,681,022 3,470,878 22,097,935 3,101,646 600,000

REVENUES PLEDGED TO BONDS

BOB TOURISTSIKES CONSITUTIONAL HALF-CENT DEVELOPMENT LEASE

YEAR BRIDGE GAS TAX SALES TAX TAX REVENUES

19861987198819891990199119921993199419951996199719981999200020012002200320042005

$1,345,9201,172,5231,295,3351,714,7851,472,784

849,6491,312,3611,977,9721,988,4311,307,0461,854,8351,681,022

$2,717,9342,637,0602,585,4462,670,1162,561,6653,051,3262,857,9332,869,4473,009,2123,090,7753,160,7983,151,7533,113,5611,854,7163,284,5043,470,878

$7,194,1437,606,8558,994,2829,226,6599,878,3289,684,913

10,362,85011,394,20811,932,14413,294,43814,555,78714,795,65115,472,52316,357,67317,009,33916,695,74218,174,27510,543,35319,478,50622,097,935

118

$702,296886,713

1,102,5451,624,0921,538,8231,620,0171,720,7921,827,8221,909,2832,109,8962,446,3253,252,2033,292,2093,236,4852,774,4743,784,7563,930,8932,118,4353,575,7923,101,646

593,333600,000600,000

119


BOB SIKES TOLL BRIDGE REVENUES

OVERVIEW The Bob Sikes Bridge connects Gulf Breeze, Florida, located in Santa Rosa County, to Pensacola Beach which is Escambia County. The bridge was operated and owned by the State of Florida, Department of Transportation prior to the County acquiring the bridge. Funding to purchase the bridge from the State was obtained from the issuance of the Road Improvement Revenue Bonds, Series 1993A (Refunded by Capital Improvement Revenue Bonds Series 2002) and 1993B. This bridge was opened in 1972 and is a two-mile long four-lane facility. Users of the bridge must pay tolls of: Cash Tolls – One way onto Santa Rosa Island Passenger Cars $1.00 Trucks/Buses/3 or more Axles (plus 50 cents per Axle) $1.00 Trailers $1.00 Annual Permits – Good for unlimited trips Passenger Cars & Trucks $50.00 Commercial Trucks/ Buses (3 or more axles) $70.00 (1993A Revenue Bonds were Redeemed by the Capital Improvement Bonds Series 2002.)

PLEDGE: The net revenues generated from the Bob Sikes tolls, other incomes and the Constitutional Gas Tax revenues are pledged to payment of principal and interest of the Road Improvement Revenue Bonds, Series 1993B. The required debt coverage test for Additional Parity Bonds equals 1.75 times the Maximum Bond Service Requirement for all debt. Additionally, the toll bridge revenue, along with the Santa Rosa Island Authority lease fees are pledged to the payment of the Capital Improvement Revenue Bonds Series 2002. TAX INFORMATION: Tax Rate – Tolls/ Permits Year Began – 1972

REVENUES PLEDGED TO BONDSBOB SIKES TOLL BRIDGE REVENUES

OVERVIEWThe Bob Sikes Bridge connects Gulf Breeze,Florida, located in Santa Rosa County, toPensacola Beach which is Escambia County.The bridge was operated and owned by theState of Florida, Department of Transportationprior to the County acquiring the bridge.Funding to purchase the bridge from the Statewas obtained from the issuance of the RoadImprovement Revenue Bonds, Series 1993A(Refunded by Capital Improvement RevenueBonds Series 2002) and 19938. This bridgewas opened in 1972 and is a two-mile longfour-lane facility. Users of the bridge must paytolls of:

Cash Tolls — One way onto Santa Rosa IslandPassenger Cars $1.00Trucks/Buses/3 or moreAxles (plus 50 cents perAxle)Trailers

$1.00$1.00

Annual Permits — Good for unlimited tripsPassenger Cars & Trucks $50.00Commercial Trucks/Buses (3 or more axles) $70.00

(1993A Revenue Bonds were Redeemed bythe Capital Improvement Bonds Series 2002.)

119

PLEDGE:The net revenues generated from the BobSikes tolls, other incomes and theConstitutional Gas Tax revenues are pledgedto payment of principal and interest of theRoad Improvement Revenue Bonds, Series19938. The required debt coverage test forAdditional Parity Bonds equals 1.75 times theMaximum Bond Service Requirement for alldebt. Additionally, the toll bridge revenue,along with the Santa Rosa Island Authoritylease fees are pledged to the payment of theCapital Improvement Revenue Bonds Series2002.

TAX INFORMATION:Tax Rate — Tolls/ PermitsYear Began — 1972

120

REVENUES PLEDGED TO BONDS 80% AND 20% PORTION OF CONSTITUTIONAL GAS TAX

OVERVIEW: Surplus Gas Tax Revenues are collected by the State from the sales by retailers of gasoline, gasohol and special fuel within the boundaries of the County. Pursuant to Section 206.47(7), FS, the Constitutional Gas Tax proceeds must first be used to meet the debt service requirements, if applicable, from the 80% portion and, if necessary, from the 20% portion. The remaining proceeds distributed back to the counties must be used for the acquisition, construction, and maintenance of roads. The distribution of monies from this tax is computed by a formula comprised of three components: an area component, a population component, and a collection component. The distribution factor is as follows: 1 X County Area 4 State Area + 1 X County Population

4 State Population + 1 X # of Fuel Gals. (Co.) 4 # of Fuel Gals. (State) = County’s Distribution Factor

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Road Improvement Revenue Bonds, Series 1993B. Required debt coverage test for Additional Parity Bonds equals 1.75 times the Maximum Bond Service Requirement of the Road Improvement Revenue Bonds, Series 1993A (Refunded by the Capital Improvement Revenue Bonds, Series 2002) and 1.50 times the Maximum Bond Service Requirement of the Road Improvement Revenue Bonds, Series 1993B. TAX INFORMATION: Tax Rate – 2 cents per gallon Year Began – 1943

REVENUES PLEDGED TO BONDS80% AND 20% PORTION OF CONSTITUTIONAL GAS TAX

OVERVIEW:Surplus Gas Tax Revenues are collected bythe State from the sales by retailers ofgasoline, gasohol and special fuel within theboundaries of the County. Pursuant toSection 206.47(7), FS, the Constitutional GasTax proceeds must first be used to meet thedebt service requirements, if applicable, fromthe 80% portion and, if necessary, from the20% portion. The remaining proceedsdistributed back to the counties must be usedfor the acquisition, construction, andmaintenance of roads. The distribution ofmonies from this tax is computed by a formulacomprised of three components: an areacomponent, a population component, and acollection component. The distribution factoris as follows:

X County AreaState Area4M

4

X County PopulationState Population

X # of Fuel Gals. ICC.)# of Fuel Gals. (State)

4M4

4M4

= County’s Distribution Factor

120

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Road Improvement RevenueBonds, Series 1993B. Required debtcoverage test for Additional Parity Bondsequals 1.75 times the Maximum Bond ServiceRequirement of the Road ImprovementRevenue Bonds, Series 1993A (Refunded bythe Capital Improvement Revenue Bonds,Series 2002) and 1.50 times the MaximumBond Service Requirement of the RoadImprovement Revenue Bonds, Series 19938.

TAX INFORMATION:Tax Rate — 2 cents per gallonYear Began — 1943

121


LOCAL GOVERNMENT HALF-CENT SALES TAX

OVERVIEW: Pursuant to Chapter 212, Florida Statutes, the State of Florida is authorized to levy and collect a sales tax on, among other things, the sales price of each item or article of tangible personal property sold at retail in the State of Florida, subject to certain exceptions and dealer allowances. Chapter 212 was amended in 1982 to increase the sales tax from 4% to 5% and was further amended in 1988 to increase the sales tax from 5% to 6%. One-half of the fifth cents was devoted to the Program, thus giving rise to the name “Half-Cent Sales Tax.” Since 1993, the proportion of sales tax revenue deposited in the Local Government Half-Cent Sales Tax Trust Fund in the State Treasury has been constant at 9.653%. The funds are earmarked for distribution to the governing body of such county and of each participating municipality within that county pursuant to the following distribution formula: unincorporated area 2/3 incorporated population + area population total county 2/3 incorporated population + area population Section 218.64, Florida Statutes, permits local governments to pledge their share of the proceeds for the payment of the principal and interest on bonds issued for the financing of any capital project.

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Sales Tax Refunding Revenue Bonds, Series 2002 issued by the County. Required debt coverage for Additional Parity Bonds equals 1.35 times the Maximum Bond Service Requirement for all debt. TAX INFORMATION: Tax Rate – 9.653% of Adjusted Sales Tax Collections. Year Began – 1982

REVENUES PLEDGED TO BONDSLOCAL GOVERNMENT HALF-CENT SALES TAX

OVERVIEW:Pursuant to Chapter 212, Florida Statutes, theState of Florida is authorized to levy andcollect a sales tax on, among other things, thesales price of each item or article of tangiblepersonal property sold at retail in the State ofFlorida, subject to certain exceptions anddealer allowances. Chapter 212 wasamended in 1982 to increase the sales taxfrom 4% to 5% and was further amended in1988 to increase the sales tax from 5% to 6%.One-half of the fifth cents was devoted to theProgram, thus giving rise to the name ”Half-Cent Sales Tax.” Since 1993, the proportionof sales tax revenue deposited in the LocalGovernment Half-Cent Sales Tax Trust Fundin the State Treasury has been constant at9.653%. The funds are earmarked fordistribution to the governing body of suchcounty and of each participating municipalitywithin that county pursuant to the followingdistribution formula:

unincorporated areapopulation +total countypopulation +

2/3 incorporatedarea population2/3 incorporatedarea population

Section 218.64, Florida Statutes, permits localgovernments to pledge their share of theproceeds for the payment of the principal andinterest on bonds issued for the financing ofany capital project.

121

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Sales Tax Refunding RevenueBonds, Series 2002 issued by the County.Required debt coverage for Additional ParityBonds equals 1.35 times the Maximum BondService Requirement for all debt.

TAX INFORMATION:Tax Rate — 9.653% of Adjusted Sales TaxCollections.Year Began — 1982

122

REVENUES PLEDGED TO BONDS TOURIST DEVELOPMENT TAX

OVERVIEW: Florida Statute 125.0104 provides for the imposition of the Tourist Development Tax. Three taxes are levied by the County: Original 2% Tax, Additional 1% Tax and the Professional Sports Franchise Facility Tax. Transient rental transactions and the sale of food and beverages consumed on hotel or motel premises located in specified charter counties are subject to the tax. The revenues generated from the tax may be used for certain types of capital construction, tourist promotion, and beach and shoreline maintenance. The utilization of the funds collected from the Tourist Development Tax is governed by County Ordinance 2003-11. Revenues are allocated and applied only in order of priority as follows: 1) The operation, maintenance, improvement, etc. of civic arenas (sports, cultural, convention complexes) within the boundaries of Escambia County, including any payments required for debt service on obligations incurred for such purposes. 2) The financing of beach improvement, maintenance, erosion control, etc. of tourist facilities at Pensacola Beach and Perdido Key. 3) A minimum of 30% of the Tourist Tax collected (remaining after payment of 1 and 2) for the promotion, development and advertisement of Escambia County tourism. 4) Allocate a minimum of $200,000 annually (remaining after payment of 1, 2, and 3) to the renewal and replacement fund for the Pensacola Civic Center financed from the Tourist Development Tax Revenues. 5) Any unspent and unencumbered Tourist Development Tax revenues will be used for any lawful purpose for Tourist Development.

PLEDGE: The revenues generated from this tax are pledged to the payment of principal and interest on the Tourist Development Refunding Revenue Bonds, Series 2002 issued by the County. The debt coverage test for Additional Parity Bonds equals 1.5 times the Maximum Bond Service Requirement for all debt. TAX INFORMATION: Tax Rate – 3% Year Began – 1977 Additional Tax Rate – 1% Dates Effective: May 1, 1996 – April 30, 1999 August 1, 2000 – The 1% tax shall automatically expire upon the retirement of all debt financing for the expanded soccer center.

REVENUES PLEDGED TO BONDSTOURIST DEVELOPMENT TAX

OVERVIEW:Florida Statute 125.0104 provides for theimposition of the Tourist Development Tax.Three taxes are levied by the County: Original2% Tax, Additional 1% Tax and theProfessional Sports Franchise Facility Tax.Transient rental transactions and the sale offood and beverages consumed on hotel ormotel premises located in specified chartercounties are subject to the tax. The revenuesgenerated from the tax may be used forcertain types of capital construction, touristpromotion, and beach and shorelinemaintenance.

The utilization of the funds collected from theTourist Development Tax is governed byCounty Ordinance 2003-11. Revenues areallocated and applied only in order of priorityas follows: 1) The operation, maintenance,improvement, etc. of civic arenas (sports,cultural, convention complexes) within theboundaries of Escambia County, including anypayments required for debt service onobligations incurred for such purposes. 2) Thefinancing of beach improvement,maintenance, erosion control, etc. of touristfacilities at Pensacola Beach and Perdido Key.3) A minimum of 30% of the Tourist Taxcollected (remaining after payment of 1 and 2)for the promotion, development andadvertisement of Escambia County tourism.4) Allocate a minimum of $200,000 annually(remaining after payment of 1, 2, and 3) to therenewal and replacement fund for thePensacola Civic Center financed from theTourist Development Tax Revenues. 5) Anyunspent and unencumbered TouristDevelopment Tax revenues will be used forany lawful purpose for Tourist Development.

122

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Tourist Development RefundingRevenue Bonds, Series 2002 issued by theCounty. The debt coverage test for AdditionalParity Bonds equals 1.5 times the MaximumBond Service Requirement for all debt.

TAX INFORMATION:Tax Rate — 3%Year Began — 1977

Additional Tax Rate — 1%Dates Effective:

May 1, 1996 —April 30, 1999August 1, 2000 — The 1% tax shallautomatically expire upon theretirement of all debt financing for theexpanded soccer center.

123

REVENUES PLEDGED TO BONDS SANTA ROSA ISLAND AUTHORITY LEASE FEES

OVERVIEW: The Santa Rosa Island Authority was created in 1947 as the governing body for Pensacola Beach. Because of a deed restriction placed on the transfer of title from the US Department of Interior to Escambia County, the fee estate to all property on Pensacola Beach is owned by Escambia County. The Authority has leased such property to private individuals and corporations pursuant to leases that generally are for a term of ninety-nine (99) years. Leaseholders pay annual lease fees as follows: Commercial – minimum fee ranging from $100 to $50,000 depending on type of lease or percentage of leaseholder’s gross income (1% - 5% depending on type of lease); whichever is greater. Residential - $100 - $3,000 per year.

PLEDGE: Santa Rosa Island Authority has pledged a guaranteed $560,000 of lease fees annually toward the payment of principal and interest of the Capital Improvement Revenue Bonds Series 2002. Additionally, the Santa Rosa Island Authority has pledged a guaranteed $40,000 of lease fees annually toward the payment of principal and interest of the Tourist Development Refunding Revenue Bonds, Series 2002. Both bonds have a required debt coverage test for Additional Parity Bonds equals 1.50 times the maximum Bond Service Requirement for all bonds then outstanding. TAX INFORMATION: Tax Rate – Lease Fees. Year Began – 2003

REVENUES PLEDGED TO BONDSSANTA ROSA ISLAND AUTHORITY LEASE FEES

OVERVIEW:The Santa Rosa Island Authority was createdin 1947 as the governing body for PensacolaBeach. Because of a deed restriction placedon the transfer of title from the US Departmentof Interior to Escambia County, the fee estateto all property on Pensacola Beach is ownedby Escambia County. The Authority hasleased such property to private individuals andcorporations pursuant to leases that generallyare for a term of ninety-nine (99) years.Leaseholders pay annual lease fees asfollows:

Commercial — minimum fee ranging from $100to $50,000 depending on type of lease orpercentage of Ieaseholder’s gross income (1%- 5% depending on type of lease); whicheveris greater.

Residential - $100 - $3,000 per year.

123

PLEDGE:Santa Rosa Island Authority has pledged aguaranteed $560,000 of lease fees annuallytoward the payment of principal and interest ofthe Capital Improvement Revenue BondsSeries 2002. Additionally, the Santa RosaIsland Authority has pledged a guaranteed$40,000 of lease fees annually toward thepayment of principal and interest of the TouristDevelopment Refunding Revenue Bonds,Series 2002. Both bonds have a required debtcoverage test for Additional Parity Bondsequals 1.50 times the maximum Bond ServiceRequirement for all bonds then outstanding.

TAX INFORMATION:Tax Rate — Lease Fees.Year Began — 2003

OUTSTANDING BONDS

(Unaudited)

OUTSTANDING BONDS

(Unaudited)

124

$12,630,000 ESCAMBIA COUNTY, FLORIDA

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B Dated: December 1, 1993

(Unaudited) PURPOSE: 1. Finance a portion of the amounts

payable to the State of Florida pursuant to a Transfer Agreement between the County and the State in connection with the acquisition of the Bob Sikes Bridge connecting Gulf Breeze, Florida with Pensacola Beach, Florida.

2. Pay the costs of issuing the Series B Bonds.

3. Establish required reserves. SECURITY: The Series 1993B Bonds and the interest thereon are payable solely from and secured by an irrevocable lien upon and pledge of: 1. Surplus Gas Tax Revenues, and 2. Moneys held in the funds and

accounts thereunder and the income investment thereof on a parity with the Road Improvement Revenue Bonds, Series 1993A, until otherwise applied as provided in the Resolution.

AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Berkeley Street, 7-E, New York, NY 10286, (800) 254-2826 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984

RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Fitch’s – AAA Insurer – FGIC FORM: The Bonds were issued in denomination of $5,000 or any integral multiple thereof. Interest on the 1993B Bonds became payable July 1, 1994 and semiannually thereafter on January 1 and July 1. ISSUED AS: $12,630,000 Serial Bonds REDEMPTION PROVISIONS: The Series 1993B Bonds maturing on or before January 1, 2004 are not subject to optional redemption prior to their respective dates of maturity.

Optional Redemption The Series 1993B Bonds maturing on or after January 1, 2005 are subject to redemption prior to their respective stated dates of maturity at the option of the County, in whole or in part in such order of maturity as the County may determine on any date on or after January 1, 2004, at the following redemption prices together with accrued interest to the redemption rate. Redemption Period Redemption (dates inclusive) Price 01/01/04 through 12/30/04 102% 01/01/05 through 12/31/05 101% 01/01/06 and thereafter 100%

$12,630,000ESCAMBIA COUNTY, FLORIDA

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993BDated: December 1, 1993

(Unaudited)

PURPOSE:1. Finance a portion of the amounts

payable to the State of Floridapursuant to a Transfer Agreementbetween the County and the State inconnection with the acquisition of theBob Sikes Bridge connecting GulfBreeze, Florida with PensacolaBeach, Florida.

2. Pay the costs of issuing the Series BBonds.

3. Establish required reserves.

SECURITY:The Series 1993B Bonds and the interestthereon are payable solely from and securedby an irrevocable lien upon and pledge of:1. Surplus Gas Tax Revenues, and2. Moneys held in the funds and

accounts thereunder and the incomeinvestment thereof on a parity with theRoad Improvement Revenue Bonds,Series 1993A, until othenNise appliedas provided in the Resolution.

AGENTS:Registrar — The Bank of New York, CorporateTrust Department, 10161 Centurion Parkway,Jacksonville, FL or The Bank of New York,Trust Company of Florida, NA, Church StreetStation, PO Box 11214, New York, NY 10286-1214Paying Agent — The Bank of New York, BondRelations, Corporate Trust Operations, FiscalAgencies Department, 101 Berkeley Street, 7-E, New York, NY 10286, (800) 254-2826Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

124

RATINGS:Moody’s — AaaStandard & Poor’s — AAAFitch’s — AAAInsurer — FGIC

FORM:The Bonds were issued in denomination of$5,000 or any integral multiple thereof.Interest on the 19938 Bonds became payableJuly 1, 1994 and semiannually thereafter onJanuary 1 and July 1.

ISSUED AS:$12,630,000 Serial Bonds

REDEMPTION PROVISIONS:The Series 1993B Bonds maturing on orbefore January 1, 2004 are not subject tooptional redemption prior to their respectivedates of maturity.

Optional RedemptionThe Series 1993B Bonds maturing on or afterJanuary 1, 2005 are subject to redemptionprior to their respective stated dates ofmaturity at the option of the County, in wholeor in part in such order of maturity as theCounty may determine on any date on or afterJanuary 1, 2004, at the following redemptionprices together with accrued interest to theredemption rate.

Redemption Period(dates inclusive)01/01/04 through 12/30/0401/01/05 through 12/31/0501/01/06 and thereafter

RedemptionPrice102%101%100%

125

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B

(Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/05)

(Unaudited)

Bond Year %Ending Interest Total

January 1 Rate Principal Interest Debt Service

2006 5.000 $980,000 $186,750 $1,166,7502007 5.000 1,030,000 136,500 1,166,5002008 5.000 1,080,000 83,750 1,163,7502009 5.000 1,135,000 28,375 1,163,375

TOTALS $4,225,000 $435,375 $4,660,375

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B(Continued)

DEBT SERVICE SCHEDULE:(As of 09/30/05)

(Unaudited)

Bond Year %Ending Interest

January 1 Rate Principal Interest

2006 5.000 $980,000 $186,7502007 5.000 1,030,000 136,5002008 5.000 1,080,000 83,7502009 5.000 1,135,000 28,375

TOTALS $4,225,000 $435,375

125

TotalDebt Service

$1 ,166,7501,166,5001,163,7501,163,375

$4,660,375

126


SALES TAX REVENUE REFUNDING BONDS, SERIES 2002 Dated: September 1, 2002

(Unaudited) PURPOSE: The Sales Tax Refunding Revenue Bonds, Series 2002 were issued to finance the costs of refunding all of the Sales Tax Revenue Refunding Bonds, Series 1993; to finance the cost of certain capital improvement projects; and to pay a portion of the costs of issuance of the 2002 Bonds. SECURITY: The Bonds are secured by a pledge of, among other things, the proceeds of the Local Government Half-Cent Sales Tax, as defined and described in, and distributed to the County under, Part VI of Chapter 218, Florida Statutes, as amended, and by amounts held in certain funds and accounts held pursuant to the Bond Resolution on a parity with the Sales Tax Revenue Bonds, Series 1993. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Garden Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Insurer – Ambac Assurance FORM: The 2002 Bonds are issued in fully registered form, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds began payment on October 1, 2003, and semiannual thereafter on April 1 and October 1 of each year.

ISSUED AS: $41,355,000 Serial Bonds $48,375,000 Term Bonds due 10/01/2033 REDEMPTION PROVISIONS: 2002 Bonds maturing prior to October 1, 2013, are not subject to redemption prior to their respective stated dates of maturity. Optional Redemption 2002 Bonds maturing on October 1, 2013, and thereafter are subject to redemption in whole or in part on any interest payment date thereafter. Redemption Period Redemption (dates inclusive) Price 10/01/2012 through 09/30/2013 101% 10/01/2013 and thereafter 100% Sinking Fund Redemption The 2002 Bonds due October 1, 2033 are subject to mandatory redemption in part prior to maturity by lot through Amortization Installments by operation of the Bond Amortization Account, at redemption prices equal to 100% of the principal amount thereof plus interest accrued to the redemption date.


SALES TAX REVENUE REFUNDING BONDS, SERIES 2002Dated: September 1, 2002

(Unaudited)

PURPOSE:The Sales Tax Refunding Revenue Bonds,Series 2002 were issued to finance the costsof refunding all of the Sales Tax RevenueRefunding Bonds, Series 1993; to finance thecost of certain capital improvement projects;and to pay a portion of the costs of issuance ofthe 2002 Bonds.

SECURITY:The Bonds are secured by a pledge of, amongother things, the proceeds of the LocalGovernment Half-Cent Sales Tax, as definedand described in, and distributed to the Countyunder, Part VI of Chapter 218, FloridaStatutes, as amended, and by amounts held incertain funds and accounts held pursuant tothe Bond Resolution on a parity with the SalesTax Revenue Bonds, Series 1993.

AGENTS:Registrar — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631Paying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Garden Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s — AAAInsurer — Ambac Assurance

FORM:The 2002 Bonds are issued in fully registeredform, in denominations of $5,000 or anyintegral multiple thereof. Interest on the 2002Bonds began payment on October 1, 2003,and semiannual thereafter on April 1 andOctober 1 of each year.

126

ISSUED AS:$41,355,000 Serial Bonds$48,375,000 Term Bonds due 10/01/2033

REDEMPTION PROVISIONS:2002 Bonds maturing prior to October 1, 2013,are not subject to redemption prior to theirrespective stated dates of maturity.

Optional Redemption2002 Bonds maturing on October 1, 2013, andthereafter are subject to redemption in wholeor in part on any interest payment datethereafter.

Redemption Period(dates inclusive)10/01/2012 through 09/30/201310/01/2013 and thereafter

RedemptionPrice101%100%

Sinking Fund RedemptionThe 2002 Bonds due October 1, 2033 aresubject to mandatory redemption in part priorto maturity by lot through Amortizationlnstallments by operation of the BondAmortization Account, at redemption pricesequal to 100% of the principal amount thereofplus interest accrued to the redemption date.

127

SALES TAX REVENUE REFUNDING BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/05) (Unaudited)

Bond Year %Ending Interest TotalSept 30 Rate Principal Interest Debt Service

Serial Bonds: ($41,355,000)2006 2.25 $1,715,000 $4,031,945 $5,746,9452007 2.60 1,755,000 3,993,358 5,748,3582008 3.65 1,800,000 3,947,728 5,747,7282009 3.00 1,865,000 3,880,328 5,745,3282010 3.25 1,925,000 3,824,378 5,749,3782011 3.25 1,985,000 3,761,815 5,746,8152012 3.40 2,050,000 3,695,318 5,745,3182013 3.65 2,120,000 3,625,618 5,745,6182014 5.25 2,200,000 3,548,238 5,748,2382015 5.25 2,315,000 3,432,738 5,747,7382016 5.25 2,435,000 3,311,200 5,746,2002017 5.25 2,565,000 3,183,363 5,748,3632018 5.25 2,700,000 3,048,700 5,748,7002019 5.00 2,840,000 2,906,950 5,746,9502020 5.00 2,985,000 2,764,950 5,749,9502021 5.00 3,130,000 2,615,700 5,745,7002022 4.81 3,290,000 2,459,200 5,749,200

SUBTOTAL $39,675,000 $58,031,523 $97,706,523

Term Bonds: ($48,375,000)2023 4.75 $3,450,000 $2,297,813 $5,747,8132024 4.75 3,615,000 2,133,938 5,748,9382025 4.75 3,785,000 1,962,225 5,747,2252026 4.75 3,965,000 1,782,438 5,747,4382027 4.75 4,155,000 1,594,100 5,749,1002028 4.75 4,350,000 1,396,738 5,746,7382029 4.75 4,555,000 1,190,113 5,745,1132030 4.75 4,775,000 973,750 5,748,7502031 4.75 5,000,000 746,938 5,746,9382032 4.75 5,240,000 509,438 5,749,4382033 4.75 5,485,000 260,538 5,745,538

SUBTOTAL 48,375,000 14,848,026 63,223,026TOTAL $88,050,000 $72,879,549 $160,929,549

SALES TAX REVENUE REFUNDING BONDS, SERIES 2002(Continued)


(Unaudited)Bond Year %

Ending Interest TotalSept 30 Rate Principal Interest Debt Service

Serial Bonds: ($41,355,000)2006 2.25 $1,715,000 $4,031,945 $5,746,9452007 2.60 1,755,000 3,993,358 5,748,3582008 3.65 1,800,000 3,947,728 5,747,7282009 3.00 1,865,000 3,880,328 5,745,3282010 3.25 1,925,000 3,824,378 5,749,3782011 3.25 1,985,000 3,761,815 5,746,8152012 3.40 2,050,000 3,695,318 5,745,3182013 3.65 2,120,000 3,625,618 5,745,6182014 5.25 2,200,000 3,548,238 5,748,2382015 5.25 2,315,000 3,432,738 5,747,7382016 5.25 2,435,000 3,311,200 5,746,2002017 5.25 2,565,000 3,183,363 5,748,3632018 5.25 2,700,000 3,048,700 5,748,7002019 5.00 2,840,000 2,906,950 5,746,9502020 5.00 2,985,000 2,764,950 5,749,9502021 5.00 3,130,000 2,615,700 5,745,7002022 4.81 3,290,000 2,459,200 5,749,200

SUBTOTAL $39,675,000 $58,031,523 $97,706,523

Term Bonds: ($48,375,000)2023 4.75 $3,450,000 $2,297,813 $5,747,8132024 4.75 3,615,000 2,133,938 5,748,9382025 4.75 3,785,000 1,962,225 5,747,2252026 4.75 3,965,000 1,782,438 5,747,4382027 4.75 4,155,000 1,594,100 5,749,1002028 4.75 4,350,000 1,396,738 5,746,7382029 4.75 4,555,000 1,190,113 5,745,1132030 4.75 4,775,000 973,750 5,748,7502031 4.75 5,000,000 746,938 5,746,9382032 4.75 5,240,000 509,438 5,749,4382033 4.75 5,485,000 260,538 5,745,538

SUBTOTAL 48,375,000 14,848,026 63,223,026TOTAL $88,050,000 $72,879,549 $160,929,549

127

128


TOURIST DEVELOPMENT REVENUE REFUNDING BONDS, SERIES 2002 Dated: October 1, 2002

(Unaudited) PURPOSE: The 2002 Bonds were issued to: 1. Refund all of the County’s Tourist

Development Revenue Bonds, Series 1992.

2. Refund the County’s outstanding promissory note payable to the Florida Local Government Finance Commission.

3. To finance the costs of acquiring, constructing and equipping certain capital improvement projects.

4. Pay the costs of issuance of the 2002 Bonds.

SECURITY: The Bonds are payable solely from the Tourist Development Tax levied and collected by the County, and the income and earnings from investments in any fund or account created and held under the resolution. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch’s – AAA Insurer – MBIA

FORM: The Bonds are issued in fully registered form, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds became payable October 1, 2003 and semiannually thereafter on April 1 and October 1. ISSUED AS: $16,885,000 Serial Bonds, due 10/01/2019 REDEMPTION PROVISIONS: The 2002 Bonds maturing October 1, 2013 and thereafter are subject to redemption prior to their stated dates of maturity at the option of the County, in whole, on any date, or in part, in such order of maturity as the County may elect on or after October 1, 2012 at the redemption price plus accrued interest to the redemption date. Redemption Period Redemption (dates inclusive) Price Oct. 1, 2012 and thereafter 100%


TOURIST DEVELOPMENT REVENUE REFUNDING BONDS, SERIES 2002Dated: October 1, 2002

(Unaudited)

PURPOSE:The 2002 Bonds were issued to:1. Refund all of the County’s Tourist

Development Revenue Bonds, Series1992.

2. Refund the County’s outstandingpromissory note payable to the FloridaLocal Government FinanceCommission.

3. To finance the costs of acquiring,constructing and equipping certaincapital improvement projects.

4. Pay the costs of issuance of the 2002Bonds.

SECURITY:The Bonds are payable solely from the TouristDevelopment Tax levied and collected by theCounty, and the income and earnings frominvestments in any fund or account createdand held under the resolution.

AGENTS:Registrar — The Bank of New York, CorporateTrust Department, 10161 Centurion Parkway,Jacksonville, FL or The Bank of New York,Trust Company of Florida, NA, Church StreetStation, PO Box 11214, New York, NY 10286-1214

Paying Agent — The Bank of New York,Corporate Trust Department, 10161 CenturionParkway, Jacksonville, FL or The Bank of NewYork, Trust Company of Florida, NA, ChurchStreet Station, PO Box 11214, New York, NY10286-1214

Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s and Fitch’s — AAAInsurer — MBIA

128

FORM:The Bonds are issued in fully registered form,in denominations of $5,000 or any integralmultiple thereof. Interest on the 2002 Bondsbecame payable October 1, 2003 andsemiannually thereafter on April 1 and October1.

ISSUED AS:$16,885,000 Serial Bonds, due 10/01/2019

REDEMPTION PROVISIONS:The 2002 Bonds maturing October 1, 2013and thereafter are subject to redemption priorto their stated dates of maturity at the option ofthe County, in whole, on any date, or in part, insuch order of maturity as the County may electon or after October 1, 2012 at the redemptionprice plus accrued interest to the redemptiondate.

Redemption Period(dates inclusive)Oct. 1, 2012 and thereafter

RedemptionPrice100%

129

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/05)

(Unaudited)


Serial Bonds:2006 2.10 $875,000 $552,750 $1,427,7502007 2.40 890,000 534,375 1,424,3752008 2.70 915,000 513,015 1,428,0152009 3.00 935,000 488,310 1,423,3102010 3.10 970,000 460,260 1,430,2602011 3.20 995,000 430,190 1,425,1902012 3.30 1,025,000 398,350 1,423,3502013 3.50 1,065,000 364,525 1,429,5252014 3.65 1,100,000 327,250 1,427,2502015 5.00 1,145,000 287,100 1,432,1002016 4.00 1,195,000 229,850 1,424,8502017 4.00 1,245,000 182,050 1,427,0502018 5.00 1,290,000 132,250 1,422,2502019 5.00 1,355,000 67,750 1,422,750

TOTAL $15,000,000 $4,968,025 $19,968,025

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002(Continued)


(Unaudited)


Serial Bonds:2006 2.10 $875,000 $552,750 $1,427,7502007 2.40 890,000 534,375 1,424,3752008 2.70 915,000 513,015 1,428,0152009 3.00 935,000 488,310 1,423,3102010 3.10 970,000 460,260 1,430,2602011 3.20 995,000 430,190 1,425,1902012 3.30 1,025,000 398,350 1,423,3502013 3.50 1,065,000 364,525 1,429,5252014 3.65 1,100,000 327,250 1,427,2502015 5.00 1,145,000 287,100 1,432,1002016 4.00 1,195,000 229,850 1,424,8502017 4.00 1,245,000 182,050 1,427,0502018 5.00 1,290,000 132,250 1,422,2502019 5.00 1,355,000 67,750 1,422,750

TOTAL $15,000,000 $4,968,025 $19,968,025

129

130


CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002 Dated: November 15, 2002

(Unaudited) PURPOSE: The bonds are being issued to finance the costs of acquiring, constructing and equipping certain capital improvements on Santa Rosa Island and to pay a portion of the costs of issuance of the 2002 bonds. SECURITY: The Bonds are payable solely from and secured by a lien upon and pledge of the Lease Revenues and the Net Toll Revenues. AGENTS: Registrar – JP Morgan, 10151 Deerwood Park Blvd., Bldg. 200, Ste. 250, Jacksonville, FL 32256, (904) 996-3041 Paying Agent – JP Morgan, 10151 Deerwood Park Blvd., Bldg. 200, Ste. 250, Jacksonville, FL 32256, (904) 996-3041 Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Garden Street, Suite 500, Pensacola, FL 32502-5984 RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch – AAA Insurer – MBIA FORM: The 2002 Bonds are issued as fully registered bonds, without coupons, in denominations of $5,000 or any integral multiple thereof. Interest on the 2002 Bonds began payment on October 1, 2003, and semiannual thereafter on April 1 and October 1 of each year.

ISSUED AS: $4,885,000 Serial Bonds $17,420,000 Term Bonds due 10/01/2032 REDEMPTION PROVISIONS: 2002 Bonds maturing prior to October 1, 2013, are not subject to redemption prior to their respective stated dates of maturity. Optional Redemption 2002 Bonds maturing on October 1, 2013, and thereafter are subject to redemption in whole or in part on any interest payment date thereafter. Redemption Period Redemption (dates inclusive) Price 10/01/2012 through 09/30/2013 101% 10/01/2013 and thereafter 100% Sinking Fund Redemption The 2002 Bonds due October 1, 2032 are subject to mandatory redemption in part prior to maturity by lot through Amortization Installments by operation of the Bond Amortization Account, at redemption prices equal to 100% of the principal amount thereof plus interest accrued to the redemption date.


CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002Dated: November 15, 2002

(Unaudited)

PURPOSE:The bonds are being issued to finance thecosts of acquiring, constructing and equippingcertain capital improvements on Santa RosaIsland and to pay a portion of the costs ofissuance of the 2002 bonds.

SECURITY:The Bonds are payable solely from andsecured by a lien upon and pledge of theLease Revenues and the Net Toll Revenues.

AGENTS:Registrar — JP Morgan, 10151 DeenNoodPark Blvd., Bldg. 200, Ste. 250, Jacksonville,FL 32256, (904) 996-3041Paying Agent — JP Morgan, 10151 DeerwoodPark Blvd., Bldg. 200, Ste. 250, Jacksonville,FL 32256, (904) 996-3041Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Garden Street, Suite500, Pensacola, FL 32502-5984

RATINGS:Moody’s — AaaStandard & Poor’s and Fitch — AAAInsurer — MBIA

FORM:The 2002 Bonds are issued as fully registeredbonds, without coupons, in denominations of$5,000 or any integral multiple thereof.Interest on the 2002 Bonds began payment onOctober 1, 2003, and semiannual thereafteron April 1 and October 1 of each year.

130

ISSUED AS:$4,885,000 Serial Bonds$17,420,000 Term Bonds due 10/01/2032

REDEMPTION PROVISIONS:2002 Bonds maturing prior to October 1, 2013,are not subject to redemption prior to theirrespective stated dates of maturity.

Optional Redemption2002 Bonds maturing on October 1, 2013, andthereafter are subject to redemption in wholeor in part on any interest payment datethereafter.

Redemption Period(dates inclusive)10/01/2012 through 09/30/201310/01/2013 and thereafter

RedemptionPrice101%100%

Sinking Fund RedemptionThe 2002 Bonds due October 1, 2032 aresubject to mandatory redemption in part priorto maturity by lot through Amortizationlnstallments by operation of the BondAmortization Account, at redemption pricesequal to 100% of the principal amount thereofplus interest accrued to the redemption date.

131

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/05) (Unaudited)

Bond Year %Ending Interest TotalOctober Rate Principal Interest Debt Service

Serial Bonds: ($4,885,000)2006 2.75 $440,000 $1,008,598 $1,448,5982007 3.13 450,000 996,498 1,446,4982008 3.00 465,000 982,248 1,447,2482009 3.20 480,000 968,298 1,448,2982010 3.40 495,000 952,938 1,447,9382011 3.60 510,000 936,108 1,446,1082012 3.85 530,000 917,748 1,447,7482013 0 0 02014 0 0 02015 0 0 02016 0 0 02017 4.43 675,000 772,137 1,447,137

SUBTOTAL $4,045,000 $7,534,570 $11,579,570

Term Bonds: ($17,420,000)2014 5.25 $1,130,000 $1,765,300 $2,895,3002016 5.25 1,250,000 1,643,500 2,893,5002022 4.75 3,870,000 3,361,313 7,231,3132027 5.00 4,910,000 2,325,500 7,235,5002032 5.00 6,260,000 969,000 7,229,000

SUBTOTAL 17,420,000 10,064,613 27,484,613TOTAL $21,465,000 $17,599,182 $39,064,182

Bond YearEndingOctober

Serial Bonds:200620072008200920102011201220132014201520162017

SUBTOTAL

Term Bonds:20142016202220272032

SUBTOTALTOTAL

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002(Continued)


(Unaudited)

%Interest

Rate Principal

($4,885,000)2.75 $440,0003.13 450,0003.00 465,0003.20 480,0003.40 495,0003.60 510,0003.85 530,000

0000

4.43 675,000

Interest

$1,008,598996,498982,248968,298952,938936,108917,748

0000

772,137

TotalDebt Service

$1,448,5981,446,4981,447,2481,448,2981,447,9381,446,1081,447,748

0OO0

1,447,137$4,045,000

($17,420,000)5.25 $1,130,0005.25 1,250,0004.75 3,870,0005.00 4,910,0005.00 6,260,000

$7,534,570

$1,765,3001,643,5003,361,3132,325,500

969,000

$11,579,570

$2,895,3002,893,5007,231,3137,235,5007,229,000

17,420,000 10,064,613 27,484,613$21,465,000

131

$17,599,182 $39,064,182

OTHER COUNTY DEBT

(Unaudited)

OTHERCOUNTYDEBT

(Unaudfled)

132

OTHER COUNTY DEBT

(Unaudited) Escambia County had available a line of credit with SunTrust Bank which permitted the borrowing (through December 31, 1997) of up to $9,600,000 to finance certain capital projects. Amounts borrowed require monthly interest payments at the rate of 68% of LIBOR plus .20% per annum, to be adjusted quarterly. Annual principal payments are required through 2006. The note is collateralized by the County’s electric franchise fee. The outstanding balance at September 30, 2005 is $394,787. Through issuance of its Capital Improvement Revenue Bond, Series 1997, the County was entitled to borrow up to $10,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund the acquisition and construction of certain capital improvement projects. Pledged revenues toward payment of the loan are electric franchise fees. Draws under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. Annual principal payments began in October 2001. As of September 30, 2005, the note balance was $8,785,000. The County also issued its Capital Improvement Revenue Bond, Series 1998, which permits borrowing up to $20,000,000 from the Gulf Breeze, Florida Capital Funding Program to fund additional capital projects. Pledged revenues towards payment of the loan are the infrastructure sales tax revenues. Draws under the loan require monthly interest payments at variable rates equal to the PSA Municipal Market, plus a maximum 34 basis points. As of September 30, 2005, the note balance was $5,602,000. On October 1, 1999, Escambia County issued Governmental Unit Notes, Series 1985B and Series 1985C for $14,000,000 and $16,000,000, respectively, with the City of Gulf Breeze, Florida Local Government Loan Program, Floating Rate Demand Revenue Bonds, Series 1985B and Series 1985C. Collateral for these loans are pledged infrastructure sales tax revenues from June 1,

1999 through May 1, 2007. Series 1985B has been paid during the fiscal year 2005. The balance of the 1985C Series at September 30, 2005 is $12,305,000. On July 18, 1996, Escambia County entered into a loan agreement with the State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF). The TFRTF was created by the Florida Legislature in 1986 to encourage the development and enhancement of the financial feasibility of revenue-producing road projects undertaken by local governmental entities. These interest-free advances are to be repaid either from the proceeds from the project’s anticipated bond issue or by installment payments over a five year period beginning in the seventh year from the date of the advance. Although these advances are interest-free, the interest earnings attributable to temporary investment of the advances by the County is required to be repaid to the TFRTF. These advances were used to conduct feasibility studies on the proposed Escambia Expressway (extension of I-110). The balance outstanding at September 30, 2005 is $302,501. On November 13, 2003, Escambia County issued Capital Improvement Revenue Bond, Series 2003 with the City of Gulf Breeze, Florida Capital Funding Revenue Bonds, Series 1997A Muni Exempt CPI Bonds. The Board intends to annually budget and appropriate revenues generated from the County’s Work Release Program. Annual principal payments began October 1, 2004. As of September 30, 2005, the balance of the notes are $2,800,000.

OTHER COUNTY DEBT(Unaudited)

Escambia County had available a line of creditwith SunTrust Bank which permitted theborrowing (through December 31, 1997) of upto $9,600,000 to finance certain capitalprojects. Amounts borrowed require monthlyinterest payments at the rate of 68% of LIBORplus .20% per annum, to be adjustedquarterly. Annual principal payments arerequired through 2006. The note iscollateralized by the County’s electricfranchise fee. The outstanding balance atSeptember 30, 2005 is $394,787.

Through issuance of its Capital ImprovementRevenue Bond, Series 1997, the County wasentitled to borrow up to $10,000,000 from theGulf Breeze, Florida Capital Funding Programto fund the acquisition and construction ofcertain capital improvement projects. Pledgedrevenues toward payment of the loan areelectric franchise fees. Draws under the loanrequire monthly interest payments at variablerates equal to the PSA Municipal Market, plusa maximum 34 basis points. Annual principalpayments began in October 2001. As ofSeptember 30, 2005, the note balance was$8,785,000.

The County also issued its CapitalImprovement Revenue Bond, Series 1998,which permits borrowing up to $20,000,000from the Gulf Breeze, Florida Capital FundingProgram to fund additional capital projects.Pledged revenues towards payment of theloan are the infrastructure sales tax revenues.Draws under the loan require monthly interestpayments at variable rates equal to the PSAMunicipal Market, plus a maximum 34 basispoints. As of September 30, 2005, the notebalance was $5,602,000.

On October 1, 1999, Escambia County issuedGovernmental Unit Notes, Series 1985B andSeries 1985C for $14,000,000 and$16,000,000, respectively, with the City of GulfBreeze, Florida Local Government LoanProgram, Floating Rate Demand RevenueBonds, Series 1985B and Series 1985C.Collateral for these loans are pledgedinfrastructure sales tax revenues from June 1,

132

1999 through May 1, 2007. Series 1985B hasbeen paid during the fiscal year 2005. Thebalance of the 1985C Series at September 30,2005 is $12,305,000.

On July 18, 1996, Escambia County enteredinto a loan agreement with the State ofFlorida’s Toll Facilities Revolving Trust Fund(TFRTF). The TFRTF was created by theFlorida Legislature in 1986 to encourage thedevelopment and enhancement of thefinancial feasibility of revenue-producing roadprojects undertaken by local governmentalentities. These interest-free advances are tobe repaid either from the proceeds from theproject’s anticipated bond issue or byinstallment payments over a five year periodbeginning in the seventh year from the date ofthe advance. Although these advances areinterest-free, the interest earnings attributableto temporary investment of the advances bythe County is required to be repaid to theTFRTF. These advances were used toconduct feasibility studies on the proposedEscambia Expressway (extension of M10).The balance outstanding at September 30,2005 is $302,501.

On November 13, 2003, Escambia Countyissued Capital Improvement Revenue Bond,Series 2003 with the City of Gulf Breeze,Florida Capital Funding Revenue Bonds,Series 1997A Muni Exempt CPI Bonds. TheBoard intends to annually budget andappropriate revenues generated from theCounty’s Work Release Program. Annualprincipal payments began October 1, 2004.As of September 30, 2005, the balance of thenotes are $2,800,000.

133

LONG-TERM NOTE

SUNTRUST BANK LINE OF CREDIT

(Unaudited) Original Amount: $9,600,000 Dated: December 19, 1995 Purpose: Finance certain capital projects through December 31, 1997 Collateral: Escambia County Electric Franchise Fees

Interest Rate: 68% LIBOR + 0.20% Assumed Rate: 2.5356% Maturity Date: December 31, 2005 Term: Monthly Interest Payments Annual Principal Payments

SCHEDULE OF PAYMENTS

(As of 09/30/05)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $394,787 $2,530 $397,317

LONG-TERM NOTE

SUNTRUST BANKLINE OF CREDIT

(Unaudited)

Original Amount: $9,600,000 Interest Rate: 68% LIBOR + 0.20%

Dated: December 19, 1995 Assumed Rate: 2.5356%

Purpose: Finance certain capital projects Maturity Date: December 31,2005through December 31, 1997

Term: Monthly Interest PaymentsCollateral: Escambia County Electric Annual Principal PaymentsFranchise Fees

SCHEDULE OF PAYMENTS(As of 09/30/05)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $394,787 $2,530 $397,317

133

134

LONG-TERM NOTE

CITY OF GULF BREEZE CAPITAL IMPROVEMENT BOND, SERIES 1997

(LOAN #1) (Unaudited)

Line of Credit: $10,000,000 Dated: May 20, 1997 Purpose: Fund acquisition and construction of capital improvement projects. Collateral: Escambia County Electric Franchise Fees

Term: Annual principal payments to begin October 1, 2001 Interest Rate: PSA Municipal Market Rate (Limit 34 Basis Points) Assumed Rate: 3.00% Maturity Date: October 1, 2017

SCHEDULE OF PAYMENTS

(As of 09/30/05)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $380,000 $252,430 $632,4309/30/2007 415,000 240,723 655,7239/30/2008 450,000 227,310 677,3109/30/2009 490,000 212,708 702,7089/30/2010 535,000 196,769 731,7699/30/2011 585,000 179,342 764,3429/30/2012 640,000 160,278 800,2789/30/2013 700,000 139,426 839,4269/30/2014 765,000 116,636 881,6369/30/2015 835,000 91,759 926,7599/30/2016 910,000 64,644 974,6449/30/2017 995,000 35,003 1,030,0039/30/2018 1,085,000 2,677 1,087,677

TOTALS $8,785,000 $1,919,705 $10,704,705

LONG-TERM NOTECITY OF GULF BREEZE

CAPITAL IMPROVEMENT BOND, SERIES 1997(LOAN #1)(Unaudited)

Line of Credit: $10,000,000 Term: Annual principal payments to beginOctober 1, 2001

Dated: May 20, 1997Interest Rate: PSA Municipal Market Rate

Purpose: Fund acquisition and construction (Limit 34 Basis Points)of capital improvement projects.

Assumed Rate: 3.00%Collateral: Escambia County ElectricFranchise Fees Maturity Date: October 1, 2017


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $380,000 $252,430 $632,4309/30/2007 415,000 240,723 655,7239/30/2008 450,000 227,310 677,3109/30/2009 490,000 212,708 702,7089/30/2010 535,000 196,769 731,7699/30/2011 585,000 179,342 764,3429/30/2012 640,000 160,278 800,2789/30/2013 700,000 139,426 839,4269/30/2014 765,000 116,636 881,6369/30/2015 835,000 91,759 926,7599/30/2016 910,000 64,644 974,6449/30/2017 995,000 35,003 1,030,0039/30/2018 1,085,000 2,677 1,087,677

TOTALS $8,785,000 $1,919,705 $10,704,705

134

135

LONG-TERM NOTE CITY OF GULF BREEZE

CAPITAL IMPROVEMENT BOND, SERIES 1998 (LOAN #2) (Unaudited)

Line of Credit: $20,000,000 Dated: May 26, 1997 Purpose: Fund acquisition and construction of capital improvement projects Collateral: Infrastructure Sales Tax Revenue

Term: Annual principal payments to begin February 1, 2000 Interest Rate: PSA Municipal Market Rate (Limit 34 Basis Points) Assumed Rate: 3.00% Maturity Date: February 1, 2007

SCHEDULE OF PAYMENTS (As of 09/30/05)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $2,746,000 $119,793 $2,865,7939/30/2007 2,856,000 35,915 2,891,915

TOTALS $5,602,000 $155,708 $5,757,708



Line of Credit: $20,000,000 Term: Annual principal payments to beginFebruary 1, 2000

Dated: May 26, 1997Interest Rate: PSA Municipal Market Rate

Purpose: Fund acquisition and construction (Limit 34 Basis Points)of capital improvement projects

Assumed Rate: 3.00%Collateral: Infrastructure Sales Tax Revenue

Maturity Date: February 1, 2007



TOTALS $5,602,000 $155,708 $5,757,708

135

136


CAPITAL IMPROVEMENT BOND, SERIES 1999B (LOAN #3A) (Unaudited)

Line of Credit: $14,000,000 Dated: October 1, 1999 Purpose: Acquisition, construction, equipping of capital projects for infrastructure

Collateral: Pledged Infrastructure Sales Tax Revenues from 06/01/99 to 12/01/04 Interest Rate: 4.5462% Maturity Date: December 1, 2004


(Matured 12/01/04)

Line of Credit: $14,000,000

Dated: October 1, 1999


CAPITAL IMPROVEMENT BOND, SERIES 1999B(LOAN #3A)(Unaudited)

Purpose: Acquisition, construction, equippingof capital projects for infrastructure

Collateral: Pledged Infrastructure Sales TaxRevenues from 06/01/99 to 12/01/04

Interest Rate: 4.5462%

Maturity Date: December 1, 2004


(Matured 12/01/04)

136

137


CAPITAL IMPROVEMENT BOND, SERIES 1999C (LOAN #3B) (Unaudited)

Line of Credit: $16,000,000 Dated: October 1, 1999 Purpose: Acquisition, construction, equipping of capital projects for infrastructure

Collateral: Pledged Infrastructure Sales Tax Revenues from 06/01/99 to 05/01/07 Interest Rate: 4.5462% Maturity Date: May 1, 2007



TOTALS $12,305,000 $681,963 $12,986,963


CAPITAL IMPROVEMENT BOND, SERIES 1999C(LOAN #3B)(Unaudited)

Line of Credit: $16,000,000 Collateral: Pledged Infrastructure Sales TaxRevenues from 06/01/99 to 05/01/07

Dated: October 1, 1999Interest Rate: 4.5462%

Purpose: Acquisition, construction, equippingof capital projects for infrastructure Maturity Date: May 1, 2007



TOTALS $12,305,000 $681,963 $12,986,963

137

138


CAPITAL IMPROVEMENT BOND, SERIES 2003 (LOAN #4) (Unaudited)

Loan Amount: $3,000,000 Dated: November 13, 2003 Purpose: Construction of the Work Release Residential Project

Collateral: Unsecured Interest Rate: 3.00% Maturity Date: October 1, 2017


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service

9/30/2006 $210,000 $79,579 $289,5799/30/2007 210,000 73,488 283,4889/30/2008 215,000 67,126 282,1269/30/2009 210,000 60,738 270,7389/30/2010 220,000 54,238 274,2389/30/2011 225,000 47,575 272,5759/30/2012 220,000 40,888 260,8889/30/2013 230,000 34,087 264,0879/30/2014 230,000 27,187 257,1879/30/2015 230,000 20,287 250,2879/30/2016 240,000 13,187 253,1879/30/2017 240,000 5,987 245,9879/30/2018 120,000 297 120,297

TOTALS $2,800,000 $524,664 $3,324,664



Loan Amount: $3,000,000 Collateral: Unsecured

Dated: November 13, 2003 Interest Rate: 3.00%

Purpose: Construction of the Work Release Maturity Date: October 1, 2017Residential Project


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service

9/30/2006 $210,000 $79,579 $289,5799/30/2007 210,000 73,488 283,4889/30/2008 215,000 67,126 282,1269/30/2009 210,000 60,738 270,7389/30/2010 220,000 54,238 274,2389/30/2011 225,000 47,575 272,5759/30/2012 220,000 40,888 260,8889/30/2013 230,000 34,087 264,0879/30/2014 230,000 27,187 257,1879/30/2015 230,000 20,287 250,2879/30/2016 240,000 13,187 253,1879/30/2017 240,000 5,987 245,9879/30/2018 120,000 297 120,297

TOTALS $2,800,000 $524,664 $3,324,664

138

139

LONG-TERM NOTE

STATE OF FLORIDA’S TOLL FACILITIES REVOLVING TRUST FUND (TFRTF)

(Unaudited) Loan Amount: $500,000 Dated: July 18, 1996 Purpose: Conduct feasibility studies on the proposed Escambia Expressway (extension of I-110)

Collateral: Unsecured Interest: Payable to TFRTF Maturity Date: January 16, 2009 Term: Installment payments began seven years after final advance


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $83,333 $635 $83,9689/30/2007 83,334 635 83,9699/30/2008 83,334 635 83,9699/30/2009 52,500 252 52,752

TOTALS $302,501 $2,157 $304,658

LONG-TERM NOTESTATE OF FLORIDA’S TOLL FACILITIES

REVOLVING TRUST FUND (TFRTF)(Unaudited)

Loan Amount: $500,000 Collateral: Unsecured

Dated: July 18, 1996 Interest: Payable to TFRTF

Purpose: Conduct feasibility studies on the Maturity Date: January 16, 2009proposed Escambia Expressway (extension ofI-110) Term: Installment payments began seven

years after final advance


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2006 $83,333 $635 $83,9689/30/2007 83,334 635 83,9699/30/2008 83,334 635 83,9699/30/2009 52,500 252 52,752

TOTALS $302,501 $2,157 $304,658

139

REFUNDED BONDS

(Unaudited)

REFUNDEDBONDS

(Unaudfled)

140

ESCAMBIA COUNTY OUTSTANDING REFUNDED DEBT

As of September 30, 2005

(Unaudited)

Some bond issues have been refunded by other bond issues. This schedule traces each bond issue from its origination to the bond issue currently outstanding. Details of each outstanding refunded bond issue are provided in this section.

Capital Improvement Refunding & Revenue Series 1977-1 - $10,210,000 Series 1977-2 - $10,580,000

Tourist Development Revenue Bonds Series 1992 $6,915,000

Solid Waste Disposal System Revenue Series 1978 - $3,500,000

Capital Improvement Refunding & Revenue Series 1980-1 - $30,595,000

Capital Improvement Refunding & Revenue Series 1980-2 – Redeemed 01/01/00

Special Obligation Bonds (Funded from Escrow Deposit) Series 1980A - $42,360,000

Capital Improvement Refunding & Revenue Series 1983 - $47,615,000

Capital Improvement Revenue Refunding Series 1985 – Redeemed 01/01/89

Public Improvement Revenue Refunding Series 1988A - $20,565,000

Public Improvement Revenue Refunding Series 1988B – Redeemed 01/01/00

Sales Tax Revenue Series 1989A - $20,675,000

Sales Tax Revenue Refunding Series 1993 - $50,355,000

Tourist Development Revenue Bonds Series 2002 $16,885,000

Sales Tax Revenue Refunding Series 2002 - $89,730,000,000

Road Improvement Revenue Bonds Series 1993A $7,870,000

Capital Improvement Bonds Series 2002 $22,305,000

ESCAMBIA COUNTYOUTSTANDING REFUNDED DEBT

As of September 30, 2005

(Unaudited)

Some bond issues have been refunded by other bond issues. This schedule traces each bond issuefrom its origination to the bond issue currently outstanding. Details of each outstanding refundedbond issue are provided in this section.

Sales Tax RevenueRefunding Series 2002- $89.730.000.000

Sales Tax RevenueSeries 1989A -$20,675,000

Sales Tax RevenueRefunding Series 1993- $50,355,000

Capital Improvement BondsSeries 2002$22,305,000

Public ImprovementRevenue RefundingSeries 1988A -$20,565,000

Public ImprovementRevenue RefundingSeries 19888 —Redeemed 01/01/00

Road Improvement RevenueBonds Series 1993A$7,870,000

Capital ImprovementRevenue RefundingSeries 1985 — Redeemed01/01/89

Capital ImprovementRefunding & RevenueSeries 1983 - $47,615,000

Tourist Development RevenueBonds Series 2002$16,885,000

Special ObligationBonds (Funded fromEscrow Deposit) Series1980A - $42,360,000

Tourist Development RevenueBonds Series 1992$6,915,000

Capital ImprovementRefunding & RevenueSeries 1980-2 —Redeemed 01/01/00

Capital ImprovementRefunding & RevenueSeries 1980-1 -$30,595,000

Solid Waste Disposal SystemRevenue Series 1978 -$3,500,000

Capital Improvement Refunding &RevenueSeries 1977-1 - $10,210,000Series 1977-2 - $10,580,000

14o

141


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDS SERIES 1977-1 & 1977-2

Dated: July 1, 1977

(Unaudited)

FORM: The Bonds were issued in coupon form in the denomination of $5,000 each; registered as to principal only. REFUNDED BY: Escambia County, Florida, Captial Improvement Refunding and Revenue Bonds, Series 1980-1. AGENTS: Registrar – Escambia County, Florida Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL 32256 or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 112114, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Slade, McCarty & Kelly, PA, Jacksonville, FL INTIAL RATINGS: Standard & Poor’s – BBB+ (Series 1977-2) Moody’s – A (Series 1977-2) Insurer – MBIA (Series 1977-1) CALL PROVISIONS: Escrowed to maturity

SUMMARY OF REMAINING DEBT SERVICE (As of 09/30/05)

%July 1, Interest Total

Maturities Rate Principal Interest Debt Service

2006 6.100 $1,520,000 $190,390 $1,710,3902007 6.100 1,610,000 98,210 1,708,210

TOTALS $3,130,000 $288,600 $3,418,600


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDSSERIES 1977-1 & 1977-2

Dated: July 1, 1977(Unaudited)

FORM:The Bonds were issued in coupon form inthe denomination of $5,000 each; registeredas to principal only.

REFUNDED BY:Escambia County, Florida, CaptialImprovement Refunding and RevenueBonds, Series 1980-1.

AGENTS:Registrar — Escambia County, FloridaPaying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL 32256or The Bank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box112114, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Slade, McCarty & Kelly, PA,Jacksonville, FL

INTIAL RATINGS:Standard & Poor’s — BBB+ (Series 1977-2)Moody’s — A (Series 1977-2)Insurer — MBIA (Series 1977-1)

CALL PROVISIONS:Escrowed to maturity

SUMMARY OF REMAINING DEBT SERVICE(As of 09/30/05)

%July 1, Interest

Maturities Rate

2006 6.1002007 6.100

Principal

$1,520,0001,610,000 98,210

TotalInterest Debt Service

$190,390 $1,710,3901,708,210

TOTALS $3,130,000 $288,600 $3,418,600

142


SOLID WASTE DISPOSAL SYSTEM REVENUE BONDS SERIES 1978

Dated: July 1, 1978

(Unaudited)

FORM: The Bonds were issued as coupon bonds, registered as to principal only, in the denomination of $5,000 each. REFUNDED BY: Escambia County, Florida, Capital Improvement Refunding and Revenue Bonds, Series 1980. AGENTS: Registrar – Escambia County, Florida Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Slade, McCarthy & Kelly, PA, Jacksonville, FL INITIAL RATINGS: Moody’s – A Insurer – None CALL PROVISIONS: Escrowed to maturity.




2006 6.875 $285,000 $64,281 $349,2812007 6.875 310,000 44,688 354,6882008 6.875 340,000 23,375 363,375

TOTALS $935,000 $132,344 $1,067,344


SOLID WASTE DISPOSAL SYSTEM REVENUE BONDSSERIES 1978

Dated: July 1, 1978

(Unaudited)

FORM:The Bonds were issued as coupon bonds,registered as to principal only, in thedenomination of $5,000 each.

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214

REFUNDED BY: Bond Counsel — Freeman, Richardson,Escambia County, Florida, Capital Watson, Slade, McCarthy & Kelly, PA,Improvement Refunding and Revenue Jacksonville, FLBonds, Series 1980.

INITIAL RATINGS:Moody’s — AInsurer — None

AGENTS:Registrar — Escambia County, FloridaPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826

CALL PROVISIONS:Escrowed to maturity.




2006 6.875 $285,000 $64,281 $349,2812007 6.875 310,000 44,688 354,6882008 6.875 340,000 23,375 363,375

TOTALS $935,000 $132,344 $1,067,344

142

143


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDS SERIES 1980-1

Dated: December 1, 1980

(Unaudited) FORM: The Series 1980-1 Bonds were issued as coupon bonds, registered as to principal only, in the denomination of $5,000. REFUNDED BY: Escambia County, Florida, Capital Improvement Refunding Revenue Bonds, Series 1983. AGENTS: Registrar – AmSouth Bank, Birmingham, AL Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Kelly & Livermore, PA, Jacksonville, FL Transfer Agent – Bank of New York, 101 Barclay Street, Lobby Level, Corporate Trust Service Window, New York, NY 10286, Attention: Fiscal Agency Department INITIAL RATINGS: Standard & Poor’s – AAA Insurer – MBIA CALL PROVISIONS: Escrowed to maturity.




2006 11.000 $2,105,000 $1,116,525 $3,221,5252007 11.000 2,335,000 884,975 3,219,9752008 7.500 2,595,000 628,125 3,223,1252009 7.500 2,785,000 433,500 3,218,5002010 7.500 2,995,000 224,625 3,219,625

TOTALS $12,815,000 $3,287,750 $16,102,750


CAPITAL IMPROVEMENT REFUNDING AND REVENUE BONDSSERIES 1980-1

Dated: December 1, 1980(Unaudited)

FORM:The Series 1980-1 Bonds were issued ascoupon bonds, registered as to principalonly, in the denomination of $5,000.

REFUNDED BY:Escambia County, Florida, CapitalImprovement Refunding Revenue Bonds,Series1983.

AGENTS:Registrar — AmSouth Bank, Birmingham,ALPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Kelly & Livermore, PA,Jacksonville, FLTransfer Agent — Bank of New York, 101Barclay Street, Lobby Level, Corporate TrustService Window, New York, NY 10286,Attention: Fiscal Agency Department

INITIAL RATINGS:Standard & Poor’s — AAAInsurer — MBIA



Bond YearEnding

January 1

%Interest

Rate

20062007200820092010

11.00011.0007.5007.5007.500

Principal

$2,105,0002,335,0002,595,0002,785,0002,995,000


$1,1 16,525884,975628,125433,500224,625

$3,221,5253,219,9753,223,1253,218,5003,219,625

TOTALS $12,815,000

143

$3,287,750 $16,102,750

144

$42,360,000 ESCAMBIA COUNTY, FLORIDA SPECIAL OBLIGATION BONDS

SERIES 1980A

Dated: December 1, 1980 (Unaudited)

FORM: The Special Bonds were issued as coupon bonds, registered as to principal only, or as to both principal and interest, in the denomination of $5,000. REFUNDED BY: The Special Bonds are payable solely from amounts available pursuant to the Escrow Deposit Agreement. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214, (800) 254-2826, Bond Relations Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations, Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826 Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The

Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Freeman, Richardson, Watson, Kelly & Livermore, PA, Jacksonville, FL INTITAL RATINGS: Standard & Poor’s – AAA Insurer – None CALL PROVISIONS: The Special Bonds are not subject to redemption prior to maturity, and additional Special Bonds may not be issued under the Special Bond Resolution.

SUMMARY OF REMAINING DEBT SERVICE

(As of 09/30/05)

%Interest Total

Date Rate Principal Interest Debt Service

01/2006 10.500 $185,000 $28,960 $213,96007/2006 10.500 195,000 19,248 214,24801/2007 10.600 80,000 9,010 89,01007/2007 10.600 90,000 4,770 94,770

TOTALS $550,000 $61,988 $611,988

$42,360,000ESCAMBIA COUNTY, FLORIDASPECIAL OBLIGATION BONDS

SERIES 1980A


FORM:The Special Bonds were issued as couponbonds, registered as to principal only, or asto both principal and interest, in thedenomination of $5,000.

REFUNDED BY:The Special Bonds are payable solely fromamounts available pursuant to the EscrowDeposit Agreement.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214, (800)254-2826, Bond RelationsPaying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or The

Bank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Freeman, Richardson,Watson, Kelly & Livermore, PA,Jacksonville, FL

INTITAL RATINGS:Standard & Poor’s — AAAInsurer — None

CALL PROVISIONS:The Special Bonds are not subject toredemption prior to maturity, and additionalSpecial Bonds may not be issued under theSpecial Bond Resolution.


%Interest

Date Rate

01/200607/200601/200707/2007

10.500 $110.500 110.60010.600

Principal

85,00095,00080,00090,000


$28,96019,2489,0104,770

$213,960214,248

89,01094,770

TOTALS $550,000

144

$61,988 $611,988

145


CAPITAL IMPROVEMENT REFUNDING REVENUE BONDS SERIES 1983

Dated: September 22, 1983

(Unaudited)

FORM: The Series 1983 Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Capital Improvement Revenue and Refunding Bonds, Series 1985. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Bond Counsel – Livermore, Klein & Lott, PA, Jacksonville, FL INITIAL RATINGS: Standard & Poor’s – AAA Insurer – MBIA CALL PROVISIONS: Paid from Escrow Account at the following schedule: 1993 – 2009 called January 1, 1993 2010 – 2011 paid as scheduled


(As of 09/30/05)



2010 7.500 $4,455,000 $451,500 $4,906,5002011 7.500 1,565,000 117,376 1,682,376

TOTALS $6,020,000 $568,876 $6,588,876


CAPITAL IMPROVEMENT REFUNDING REVENUE BONDSSERIES 1983

Dated: September 22, 1983(Unaudited)

FORM:The Series 1983 Bonds were issued as fullyregistered bonds, in the denomination of$5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, CapitalImprovement Revenue and RefundingBonds, Series 1985.

AGENTS:Registrar — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631Paying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

Escrow Agent — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Bond Counsel — Livermore, Klein & Lott,PA, Jacksonville, FL

INITIAL RATINGS:Standard & Poor’s — AAAInsurer — MBIA

CALL PROVISIONS:Paid from Escrow Account at the followingschedule:

1993 — 2009 called January 1, 19932010 — 2011 paid as scheduled



January 1 Rate

2010 7.5002011 7.500

Principal

$4,455,0001,565,000 117,376


$451,500 $4,906,5001,682,376

TOTALS $6,020,000 $568,876 $6,588,876

146

$20,675,000 ESCAMBIA COUNTY, FLORIDA SALES TAX REVENUE BONDS

SERIES 1989A

Dated: December 1, 1989 (Unaudited)

FORM: The Series 1989A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Sales Tax Revenue and Refunding Bonds, Series 2002. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s - Aaa Standard & Poor’s – AAA Insurer – FGIC CALL PROVISIONS: Escrowed to maturity. Bonds matured in full on January 1, 2003.

$20,675,000ESCAMBIA COUNTY, FLORIDASALES TAX REVENUE BONDS

SERIES 1989A


FORM:The Series 1989A Bonds were issued asfully registered bonds, in the denominationof $5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, Sales TaxRevenue and Refunding Bonds, Series2002.


146

Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street,Suite 500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s - AaaStandard & Poor’s — AAAInsurer — FGIC


Bonds matured in full on January 1, 2003.

147


TOURIST DEVELOPMENT REVENUE BONDS SERIES 1992

Dated: September 1, 1992

(Unaudited)

FORM: The Series 1992 Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Tourist Development Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – The Bank of New York, Corporate Trust Department, 10161 Centurion Parkway, Jacksonville, FL or The Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations, Corporate Trust Operations,

Fiscal Agencies Department, 101 Barkley Street, 7-E, New York, NY 10286, (800) 254-2826. Bond Counsel – Miller, Canfield, Paddock and Stone, PLC, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Aaa Standard & Poor’s – AAA Insurer – FGIC CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 – 2012 as scheduled


(As of 09/30/05)


December Rate Principal Interest Debt Service2006 6.000 $390,000 $195,100 $585,1002007 6.000 415,000 172,870 587,8702008 6.000 440,000 148,800 588,8002009 6.000 465,000 122,400 587,4002010 6.000 495,000 94,500 589,5002011 6.000 525,000 64,800 589,8002012 6.000 555,000 33,300 588,300

TOTALS $3,285,000 $831,770 $4,116,770


TOURIST DEVELOPMENT REVENUE BONDSSERIES 1992

Dated: September 1, 1992(Unaudited)

FORM:The Series 1992 Bonds were issued as fullyregistered bonds, in the denomination of$5,000 or integral multiples thereof.

REFUNDED BY:Escambia County, Florida, TouristDevelopment Revenue Refunding Bonds,Series 2002.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department, 10161Centurion Parkway, Jacksonville, FL or TheBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286-1214Paying Agent — The Bank of New York,Bond Relations, Corporate Trust Operations,

Fiscal Agencies Department, 101 BarkleyStreet, 7-E, New York, NY 10286, (800)254-2826.Bond Counsel — Miller, Canfield, Paddockand Stone, PLC, 25 West Cedar Street,Suite 500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — AaaStandard & Poor’s — AAAInsurer — FGIC


2004 — 2012 as scheduled



December2006200720082009201020112012

TOTALS

Rate6.0006.0006.0006.0006.0006.0006.000

Principal$390,000415,000440,000465,000495,000525,000555,000

Debt Service$585,100

587,870588,800587,400589,500589,800588,300

Interest$195,100

172,870148,800122,40094,50064,80033,300

$3,285,000

147

$831,770 $4,116,770

148


ROAD IMPROVEMENT REVENUE BONDS SERIES 1993A

Dated: December 1, 1993

(Unaudited)

FORM: The Series 1993A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Capital Improvement Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – The Bank of New York, Corporate Trust Department 10161 Centurion Parkway, Jacksonville, FL or the Bank of New York, Trust Company of Florida, NA, Church Street Station, PO Box 11214, New York, NY 10286-1214 Paying Agent – The Bank of New York, Bond Relations Corporate Trust Operations,

Fiscal Agencies Department, 101 Berkley Street, 7-E, New York, NY 10286, (800) 254-2826 Bond Counsel – Miller, Canfield, Paddock and Stone, PA, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Baa Standard & Poor’s – BBB Insurer – None CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 called January 1, 2004


ROAD IMPROVEMENT REVENUE BONDSSERIES 1993A



REFUNDED BY:Escambia County, Florida, CapitalImprovement Revenue Refunding Bonds,Series 2002.

AGENTS:Registrar — The Bank of New York,Corporate Trust Department 10161Centurion Parkway, Jacksonville, FL or theBank of New York, Trust Company ofFlorida, NA, Church Street Station, PO Box11214, New York, NY 10286—1214Paying Agent — The Bank of New York,Bond Relations Corporate Trust Operations,

148

Fiscal Agencies Department, 101 BerkleyStreet, 7-E, New York, NY 10286, (800)254-2826Bond Counsel — Miller, Canfield, Paddockand Stone, PA, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — BaaStandard & Poor’s — BBBInsurer — None


2004 called January 1, 2004

149


SALES TAX REVENUE REFUNDING BONDS SERIES 1993

Dated: April 1, 1993

(Unaudited)

FORM: The Series 1989A Bonds were issued as fully registered bonds, in the denomination of $5,000 or integral multiples thereof. REFUNDED BY: Escambia County, Florida, Sales Tax Revenue Refunding Bonds, Series 2002. AGENTS: Registrar – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631 Paying Agent – SunTrust Bank, Trust and Investment Services Group, PO Box 3631, Orlando, FL 32802-3631, (407) 237-4085

Bond Counsel – Miller, Canfield, Paddock and Stone, PA, 25 West Cedar Street, Suite 500, Pensacola, FL 32502-5984 INITIAL RATINGS: Moody’s – Aaa Standard & Poor’s and Fitch’s – AAA Insurer – FGIC CALL PROVISIONS: Paid from Escrow Account at the following schedule: 2004 – 2015 as scheduled




2006 5.8000 $3,280,000 $2,437,925 $5,717,9252007 5.8000 3,460,000 2,257,525 5,717,5252008 5.8000 3,655,000 2,065,495 5,720,4952009 5.8000 3,860,000 1,860,815 5,720,8152010 5.8000 4,085,000 1,860,795 5,945,7952011 5.8000 4,325,000 1,407,950 5,732,9502012 5.8000 4,570,000 1,157,100 5,727,1002013 5.8000 4,835,000 892,040 5,727,0402014 5.8000 5,120,000 611,610 5,731,6102015 5.8000 5,425,000 314,650 5,739,650

TOTALS $42,615,000 $14,865,905 $57,480,905


SALES TAX REVENUE REFUNDING BONDSSERIES 1993

Dated: April 1, 1993(Unaudited)


REFUNDED BY:Escambia County, Florida, Sales TaxRevenue Refunding Bonds, Series 2002.


Bond Counsel — Miller, Canfield, Paddockand Stone, PA, 25 West Cedar Street, Suite500, Pensacola, FL 32502-5984

INITIAL RATINGS:Moody’s — AaaStandard & Poor’s and Fitch’s — AAAInsurer — FGIC


2004 — 2015 as scheduled



January 1 Rate

2006 5.8000

PrincipalTotal

Interest Debt Service

200720082009201020112012201320142015

TOTALS

5.80005.80005.80005.80005.80005.80005.80005.80005.8000

$3,280,0003,460,0003,655,0003,860,0004,085,0004,325,0004,570,0004,835,0005,120,0005,425,000

$2,437,9252,257,5252,065,4951,860,8151,860,7951,407,9501,157,100

892,040611,610314,650

$5,717,9255,717,5255,720,4955,720,8155,945,7955,732,9505,727,1005,727,0405,731,6105,739,650

$42,615,000

149

$14,865,905 $57,480,905

ECONOMIC INDICATORS (Unaudited)

ECONOMIC INDICATORS

(Unaudited)

(Unaudited)

Year Escambia County Florida United States1996 $18,509 $23,833 $24,1691997 $18,639 $24,795 $25,2981998 $19,253 $25,922 $26,4821999 $21,638 $27,124 $27,3322000 $22,441 $26,884 $26,8852001 $24,487 $30,164 $30,4042002 $25,359 $31,322 $31,5292003 $26,230 $32,479 $32,6532004 $21,295 $23,862 $24,0922005 $26,503 $32,914 $44,684

Source: Pensacola Area Chamber of Commerce (www.pensacolachamber.com) in conjunction withUniversity of West Florida Haas Center for Business Research and Economic Development

PER CAPITA INCOME - COMPARISON

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

YEARS

DO

LLA

RS

Escambia County Florida United States

150

PER CAPITA INCOME - COMPARISON

$50,000 -

$45,000 7

$40,000 //

$35,000$30 000 L/_,/w\ / f

7 /

$25,000 - Ag: _ M _r/ 2L" ' ' V

$20,000 M$15,000

$10,000

$5,000

$0 | | l l l l l | l

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005YEARS

DOLL

ARS

+ Escambia County + Florida — — United States

(Unaudited)

m Escambia County Florida United States1996 $18,509 $23,833 $24,1691997 $18,639 $24,795 $25,2981998 $19,253 $25,922 $26,4821999 $21,638 $27,124 $27,3322000 $22,441 $26,884 $26,8852001 $24,487 $30,164 $30,4042002 $25,359 $31,322 $31,5292003 $26,230 $32,479 $32,6532004 $21,295 $23,862 $24,0922005 $26,503 $32,914 $44,684

Source: Pensacola Area Chamber of Commerce (www.pensacolachambercom) in conjunction withUniversity of West Florida Haas Center for Business Research and Economic Development

150

(Unaudited)

Industry Employees % of TotalServices 55,500 28.11%Information, Financial Activities, and Professional Services 34,600 17.52%Government 29,100 14.74%Agricultural and Fishing 27,436 13.90%Retail Trade 21,600 10.94%Natural Resources, Mining, and Construction 12,500 6.33%Manufacturing 7,200 3.65%Wholesale Trade 5,600 2.84%Transportation, Warehousing, and Utilities 3,900 1.98%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation)(www.labormarketinfo.com)

EMPLOYMENT BY INDUSTRY IN ESCAMBIA COUNTY

27%

18%

15%

14%

11%

6%

4%3% 2%

Services

Information, Financial Activities, andProfessional ServicesGovernment

Agricultural and Fishing

Retail Trade

Natural Resources, Mining, andConstructionManufacturing

Wholesale Trade

Transportation, Warehousing, andUtilities

151

EMPLOYMENT BY INDUSTRY INESCAMBIA COUNTY

3% 2%4%

15%

EIServices

I Information, Financial Activities, andProfessional Services

EIGovernment

ElAgricultural and Fishing

I Retail Trade

ElNatural Resources, Mining, andConstruction

I Manufacturing

ElWholesale Trade

ITransportation, Warehousing, andUtilities

Source:

(Unaudited)

lndustm Emgloyees % of TotalServicesInformation, Financial Activities, and Professional ServicesGovernmentAgricultural and FishingRetail TradeNatural Resources, Mining, and ConstructionManufacturingWholesale TradeTransportation, Warehousing, and Utilities

Labor Market Statistics (Florida Agency for Workforce Innovation)(www.labormarketinfocom)

151

55,500 28.11%34,600 17.52%29,100 14.74%27,436 13.90%21,600 10.94%12,500 6.33%7,200 3.65%5,600 2.84%3,900 1.98%

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 142,579,000 7,259,000 4.8%Florida 8,434,000 324,000 3.7%Escambia County 134,780 5,094 3.6%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept., 2005)www.labormarketinfo.com/laus

UNEMPLOYMENT RATE

4.8%

3.7%

3.6%

United States Florida Escambia County

152

UNEMPLOYMENT RATE

3.6%

4.8%

3.7%

El United States I Florida El Escambia County

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 142,579,000 7,259,000 4.8%Florida 8,434,000 324,000 3.7%Escambia County 134,780 5,094 3.6%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept, 2005)www.|abormarketinfo.com/laus

152

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

Year Index Level Rank (out of 67)1996 93.83 381997 94.86 341998 93.16 411999 93.84 362000 93.22 452001 93.57 482002 92.24 422003 96.34 382004 99.92 492005 103.81 Unavailable

The Florida Price Level Index measures the difference from county to county in the cost of purchasinga specific market basket of goods and services at a particular point in time.

Source: Bureau of Labor Statistics--Table 6 Consumer Price Index (www.bls.gov)The 2003 Florida Price Level Index, Florida Department of Education (www.firn.edu/doe/fefp)

FLORIDA PRICE LEVEL INDEX

86.00

88.00

90.00

92.00

94.00

96.00

98.00

100.00

102.00

104.00

106.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Escambia County

153

FLORIDA PRICE LEVEL INDEX

106.00 7

104.00 f102.00

100.00

98.00

96.00 9/

94.00 ¢/.\ /

92.00 M

90.00

88.00

86.00 | | | | |

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

+Escambia County

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

m Index Level Rank gout of 67)1996 93.83 381997 94.86 341998 93.16 411999 93.84 362000 93.22 452001 93.57 482002 92.24 422003 96.34 382004 99.92 492005 103.81 Unavailable

The Florida Price Level Index measures the difference from county to county in the cost of purchasinga specific market basket of goods and services at a particular point in time.

Source: Bureau of Labor Statistics--Table 6 Consumer Price Index (www.bls.gov)The 2003 Florida Price Level Index, Florida Department of Education (www.firn.edu/doe/fefp)

153

(Per $1,000)

(Unaudited)

Year Florida Escambia County Escambia / Florida1996 $188,509,273,000 $3,125,296,000 1.66%1997 $173,600,000,000 $3,077,864,000 1.77%1998 $183,800,000,000 $3,120,950,400 1.70%1999 $196,000,000,000 $3,195,358,300 1.63%2000 $207,409,799,600 $3,389,615,300 1.63%2001 $217,304,369,500 $3,389,946,900 1.56%2002 $228,751,266,400 $3,421,082,300 1.50%2003 $235,060,576,500 $3,582,899,500 1.52%2004 $251,897,883,800 $3,714,745,800 1.47%2005 $291,285,863,200 $4,683,988,200 1.61%

Source: Local Government Financial Information Handbook (www.fcn.state.fl.us/lcir)

TAXABLE RETAIL SALES

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005


$0

$100,000,000,000

$200,000,000,000

$300,000,000,000

$400,000,000,000

$500,000,000,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Florida

154


$500,000,000,000

$400,000,000,000

$300,000,000,000

$200,000,000,000

$100,000,000,000

$01996 1997 1998 1999 2000 2001 2002 2003 2004 2005

TAXABLE RETAIL SALES$5,000,000,000 —

$4,000,000,000

$3,000,000,000 Q——.——_—Q——

$2,000,000,000

$1 ,000,000,000

$0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

(Per $1,000)

(Unaudited)

Year Florida Escambia County1996 $188,509,273,000 $3,125,296,0001997 $173,600,000,000 $3,077,864,0001998 $183,800,000,000 $3,120,950,4001999 $196,000,000,000 $3,195,358,3002000 $207,409,799,600 $3,389,615,3002001 $217,304,369,500 $3,389,946,9002002 $228,751 ,266,400 $3,421 ,082,3002003 $235,060,576,500 $3,582,899,5002004 $251 ,897,883,800 $3,714,745,8002005 $291 ,285,863,200 $4,683,988,200

Source: Local Government Financial Information Handbook (www.fcn.state.fl.us/Icir)

154

Escambia / Florida1.66%1.77%1.70%1.63%1.63%1.56%1.50%1.52%1.47%1.61%

(Unaudited)

Year Arrivals Departures1996 545,918 546,2141997 534,375 525,8751998 575,052 581,4321999 552,057 558,6392000 489,011 507,5732001 533,513 541,2632002 637,885 643,7302003 672,397 677,5542004 740,608 737,9982005 799,907 797,545

Source: Pensacola Municipal Airport

VISITORS BY AIR

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Arrivals Departures

155

900,000

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

VISITORS BY AIR

1996 1997 1998 1999 2000 2001l l l —l

2002 2003 2004 2005

IArrivals El Departures

Egg!1996199719981999200020012002200320042005

Source: Pensacola Municipal Airport

(Unaudited)

Arrivals545,918534,375575,052552,057489,011533,513637,885672,397740,608799,907

155

Degartures546,214525,875581,432558,639507,573541,263643,730677,554737,998797,545

(Unaudited)

Escambia/Items Florida Escambia Florida

Lodging 36,841 367 1.00%Restaurants 42,971 607 1.41%Hotel/Motel Rooms 1,534,998 21,555 1.40%Restaurant Seats 3,513,423 51,535 1.47%

Source: Department of Business and Professional RegulationDivision of Hotels and Restaurants - Bureau of Licensurewww.myflorida.com/dbpr

COMPARISON OF LODGING AND RESTAURANTS

05,000

10,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,000

Lodging Restaurants

FloridaEscambia

COMPARISON OF LODGING AND RESTAURANT UNITS/SEATS

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,0005,500,0006,000,000

Hotel/Motel Rooms Restaurant Seats

FloridaEscambia

156

60,00055,00050,00045,00040,00035,00030,00025,00020,00015,00010,0005,000

COMPARISON OF LODGING AND RESTAURANTS

Lodging Restaurants

I Florida

I Escambia

6,000,0005,500,0005,000,0004,500,0004,000,0003,500,0003,000,0002,500,0002,000,0001 ,500,0001 ,000,000

500,0000

COMPARISON OF LODGING AND RESTAURANT UNITS/SEATS

Hotel/Motel Rooms Restaurant Seats

I FloridaI Escambia

(Unaudited)

Items FloridaLodging 36,841Restaurants 42,971Hotel/Motel Rooms 1,534,998Restaurant Seats 3,513,423

Source: Department of Business and Professional RegulationDivision of Hotels and Restaurants - Bureau of Licensurewww.myfloridacom/dbgr

156

Escambia367607

21,55551,535

Escambia/Florida

1.00%1.41%1.40%1.47%

(Unaudited)County of

Age Florida Age Escambia0-17 3,938,900 % of Population 22.28% 0-17 69,797 % of Population 22.61%

18-64 10,526,264 % of Population 59.54% 18-64 194,484 % of Population 63.01%

65 + 3,051,568 % of Population 17.26% 65 + 42,945 % of Population 13.91%

Source: (http://www.state.fl.us/edr/population/) (Updated: July 2005)

AGE OF POPULATION

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

0-17 18-64 65 +

Florida Escambia

157

70.00%

AGE OF POPULATION

60.00%

50.00%

40.00%

30.00%

20.00% ,7

10.00%

0.00%

0-17 18-64 65+

El Florida El Escambia

Source:

(DA9.047 3,938,900

18-64 10,526,264

65 + 3,051,568

(Unaudited)

Florida% of Population 22.28% °l§—1 \l

% of Population 59.54% 18-64

% of Population 17.26% 65 +

(http://www.state.fl.us/edr/population/) (Updated: July 2005)

157

69,797 % of Population



County ofEscambia

22.61%

63.01%

13.91%

Documents

COUNTYOFESCAMBIAFLORIDApublic.escambiaclerk.com/Clerk/forms/cafr/CAFR_2005.pdf · ii 223 Palafox Place Pensacola, Florida 32502-5845 (850) 595-4845 FAX (850) 595-4798 January 31,