SEPTEMBER30,2004 FORTHEFISCALYEARENDED COUNTY OF …public.clerk.co.escambia.fl.us/Clerk/forms/cafr/CAFR_2004.pdf · ii 223 Palafox Place ! Pensacola, Florida 32502-5845 (850) 595-4845

COUNTY OF FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR)

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004

COUNTY OF

>-u§

>om

m

FLORIDA

COMPREHENSIVE

ANNUAL

FINANCIAL

REPORT

(CAFR)

FOR THE FISCAL YEAR ENDEDSEPTEMBER 30, 2004

COMPREHENSIVE ANNUAL FINANCIAL REPORT ESCAMBIA COUNTY, FLORIDA

YEAR ENDED SEPTEMBER 30, 2004

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 - 65 COMBINING FINANCIAL STATEMENTS Combining Balance Sheet - Non-major Governmental Funds ....................................................66 - 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds .............................................................................................68 - 69 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Comparison – All Other Governmental Funds ................................................70 - 83 Combining Statement of Net Assets – Non-major Proprietary Funds ...........................................84 Combining Statement of Revenues, Expenses, and Changes in Net Assets – Non-major Proprietary Funds ..................................................................................................85 Combining Statement of Cash Flows – Non-major Proprietary Funds ..........................................86 - 87 Combining Statement of Fiduciary Net Assets – Agency Funds ..................................................88 Statement of Changes in Assets and Liabilities – Agency Funds .................................................89 - 90

STATISTICAL SECTION (UNAUDITED) Government-Wide Expenses by Function and Government-Wide Revenues ................................91 General Government Revenue by Source – Last Ten Fiscal Years .............................................92 General Government Expenditures by Function – Last Ten Fiscal Years .....................................93 Schedule of Property Taxes Levied and Collected – Last Ten Fiscal Years .................................94 Assessed and Actual Value of Taxable Property – Last Ten Fiscal Years ....................................95 Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years ...................96 Direct Debt of County-wide Organizations .................................................................................97 - 98 Special Assessment Collections – Last Ten Fiscal Years ...........................................................99 Revenue Bond Coverage – Civic Center Enterprise Bond Funds – Last Ten Fiscal Years ............100 Demographic Statistics – Last Ten Fiscal Years ........................................................................101 Property Value, Construction, and Bank Deposits – Last Ten Fiscal Years ..................................102 Principal Taxpayers .................................................................................................................103 Major Employers .....................................................................................................................104 Special Tax Collections Last Ten Fiscal Years ...........................................................................105 Schedule of Insurance .............................................................................................................106 - 116




Page

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

Notes to Financial Statements .................................................................................................. 37 - 65

COMBINING FINANCIAL STATEMENTS

Combining Balance Sheet - Non-major Governmental Funds .................................................... 66 - 67Combining Statement of Revenues, Expenditures, and Changes in Fund Balances —

Non-major Governmental Funds ............................................................................................. 68 - 69Schedules of Revenues, Expenditures, and Changes in Fund Balances —

Budget to Actual Comparison — All Other Governmental Funds ................................................ 70 - 83

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

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

Combining Statement of Fiduciary Net Assets — Agency Funds .................................................. 88

Statement of Changes in Assets and Liabilities — Agency Funds ................................................. 89 - 90

STATISTICAL SECTION (UNAUDITED)

Government-Wide Expenses by Function and Government-Wide Revenues ................................ 91General Government Revenue by Source — Last Ten Fiscal Years ............................................. 92General Government Expenditures by Function — Last Ten Fiscal Years ..................................... 93Schedule of Property Taxes Levied and Collected — Last Ten Fiscal Years ................................. 94Assessed and Actual Value of Taxable Property — Last Ten Fiscal Years .................................... 95Property Tax Rates — Direct and Overlapping Governments — Last Ten Fiscal Years ................... 96Direct Debt of County-wide Organizations ................................................................................. 97 - 98Special Assessment Collections — Last Ten Fiscal Years ........................................................... 99Revenue Bond Coverage — Civic Center Enterprise Bond Funds — Last Ten Fiscal Years ............ 100Demographic Statistics — Last Ten Fiscal Years ........................................................................ 101Property Value, Construction, and Bank Deposits — Last Ten Fiscal Years .................................. 102Principal Taxpayers ................................................................................................................. 103Major Employers ..................................................................................................................... 104Special Tax Collections Last Ten Fiscal Years ........................................................................... 105Schedule of Insurance ............................................................................................................. 106 - 116




Page

CONTINUING DISCLOSURE SECTION (UNAUDITED) PLEDGED REVENUES Summarized Schedule .............................................................................................................117 Bob Sikes Toll Bridge Revenues ...............................................................................................118 Constitutional Gas Tax .............................................................................................................119 Half-Cent Sales Tax .................................................................................................................120 Tourist Development Tax .........................................................................................................121 Lease Revenues .....................................................................................................................122 OUTSTANDING BONDS Road Improvement Revenue Bonds, Series 1993B ....................................................................123 - 124 Sales Tax Revenue Refunding Bonds, Series 2002 ...................................................................125 - 126 Tourist Development Revenue Refunding Bonds, Series 2002 ...................................................127 - 128 Capital Improvement Revenue Bonds, Series 2002 ...................................................................129 - 130 OTHER COUNTY DEBT Summarized Statement ............................................................................................................131 Sun Trust Bank Line of Credit ...................................................................................................132 City of Gulf Breeze Capital Improvement Bond, Series 1997 ......................................................133 City of Gulf Breeze Capital Improvement Bond, Series 1998 ......................................................134 City of Gulf Breeze Capital Improvement Bond, Series 1999B ....................................................135 City of Gulf Breeze Capital Improvement Bond, Series 1999C ....................................................136 City of Gulf Breeze Capital Improvement Bond, Series 2003 .......................................................137 State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ...................................................138 REFUNDED BONDS Schedule of Outstanding Refunded Debt ..................................................................................139 Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 .................................140 Solid Waste Disposal System Revenue Bonds, Series 1978 .......................................................141 Capital Improvement Refunding and Revenue Bonds, Series 1980-1 ..........................................142 Special Obligation Bonds, Series 1980A ...................................................................................143 Capital Improvement Refunding Revenue Bonds, Series 1983 ...................................................144 Sales Tax Revenue Bonds, Series 1989A .................................................................................145 Tourist Development Tax Revenue Bonds, Series 1992 .............................................................146 Road Improvement Revenue Bonds, Series 1993A ....................................................................147 Sales Tax Revenue Refunding Bonds, Series 1993 ....................................................................148 ECONOMIC INDICATORS Per Capita Income – Comparison .............................................................................................149 Employment by Industry ...........................................................................................................150 Unemployment Rate ................................................................................................................151 Florida Price Level Index ..........................................................................................................152 Taxable Retail Sales ................................................................................................................153 Visitors by Air ..........................................................................................................................154 Comparison of Lodging and Restaurants ...................................................................................155 Age of Escambia County Population .........................................................................................156




CONTINUING DISCLOSURE SECTION (UNAUDITED)

PLEDGED REVENUESSummarized Schedule ............................................................................................................. 117Bob Sikes Toll Bridge Revenues ............................................................................................... 118Constitutional Gas Tax ............................................................................................................. 119Half-Cent Sales Tax ................................................................................................................. 120Tourist Development Tax ......................................................................................................... 121Lease Revenues ..................................................................................................................... 122

OUTSTANDING BONDSRoad Improvement Revenue Bonds, Series 1993B .................................................................... 123 - 124Sales Tax Revenue Refunding Bonds, Series 2002 ................................................................... 125 - 126Tourist Development Revenue Refunding Bonds, Series 2002 ................................................... 127 - 128Capital Improvement Revenue Bonds, Series 2002 ................................................................... 129 - 130

OTHER COUNTY DEBTSummarized Statement ............................................................................................................ 131Sun Trust Bank Line of Credit ................................................................................................... 132City of Gulf Breeze Capital Improvement Bond, Series 1997 ...................................................... 133City of Gulf Breeze Capital Improvement Bond, Series 1998 ...................................................... 134City of Gulf Breeze Capital Inprovement Bond, Series 1999B .................................................... 135City of Gulf Breeze Capital Improvement Bond, Series 1999C .................................................... 136City of Gulf Breeze Capital Improvement Bond, Series 2003 ....................................................... 137State of Florida’s Toll Facilities Revolving Trust Fund (TFRTF) ................................................... 138

REFUNDED BONDSSchedule of Outstanding Refunded Debt .................................................................................. 139Capital Improvement Refunding and Revenue Bonds, Series 1977-1 and 2 ................................. 140Solid Waste Disposal System Revenue Bonds, Series 1978 ....................................................... 141Capital Improvement Refunding and Revenue Bonds, Series 1980—1 .......................................... 142Special Obligation Bonds, Series 1980A ................................................................................... 143Capital Improvement Refunding Revenue Bonds, Series 1983 ................................................... 144Sales Tax Revenue Bonds, Series 1989A ................................................................................. 145Tourist Development Tax Revenue Bonds, Series 1992 ............................................................. 146Road Improvement Revenue Bonds, Series 1993A .................................................................... 147Sales Tax Revenue Refunding Bonds, Series 1993 .................................................................... 148

ECONOMIC INDICATORSPer Capita Income — Comparison ............................................................................................. 149Employment by Industry ........................................................................................................... 150Unemployment Rate ................................................................................................................ 151Florida Price Level Index .......................................................................................................... 152Taxable Retail Sales ................................................................................................................ 153Visitors by Air .......................................................................................................................... 154Comparison of Lodging and Restaurants ................................................................................... 155Age of Escambia County Population ......................................................................................... 156


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

Wanda M. McBrearty, CPA, CGFO Deputy Finance Director


COMPREHENSIVE ANNUAL FINANCIAL REPORT


PREPARED BY

ERNIE LEE MAGAHACLERK OF THE CIRCUIT COURT

FINANCE DEPARTMENT

Wanda M. McBrearty, CPA, CGFODeputy Finance Director


ii

223 Palafox Place ! Pensacola, Florida 32502-5845 (850) 595-4845 ! FAX (850) 595-4798 ! www.clerk.co.escambia.fl.us

January 31, 2005 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, 2004. 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

W ITNESS 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 DIVISION

CENTURYARCHIVES AND RECORDS

CHILD SUPPORT

c.§'cRu°.T”'JR°.iX.itAL COUNTY OF ESCAMBIADOME‘S’IREJX'TIONS OFFICE OF THE

“Wait???” CLERK OF THE CIRCUIT COURT Eti'flél‘ééiiiii’s‘éié‘t’éiMENTAL HEALTH

PROBATE OFFICIAL RECORDSTRAFFIC COUNTY TREASURY

WITNESS MANAGEMENT AUDITOR

January 31, 2005

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, 2004. The report 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 Court 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\ I / 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

/ 33 \ 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 supporting 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

223 Palafox Place 0 Pensacola, Florida 32502-5845(850) 595-4845 0 FAX (850) 595-4798 0www.clerk.co.escambia.fl.us

iii

rendering an unqualified opinion that Escambia County’s financial statements for the fiscal year ended September 30, 2004 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 300,959. 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 are provided through a legally separate Civil Service Board which is financially dependent on Escambia County but does not provide services exclusively for Escambia County and therefore is reported separately within Escambia County’s financial statements. The Santa Rosa Island Authority (SRIA) provides management services for Escambia County’s Beach Toll 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

rendering an mqualified opinion that Escambia County’s financial statements for the fiscal yearended September 30, 2004 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 300,959. 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 are provided through a legally separate CivilService Board which is financially dependent on Escambia County but does not provide servicesexclusively for Escambia County and therefore is reported separately within Escambia County’sfinancial statements. The Santa Rosa Island Authority (SRIA) provides management services forEscambia County’s Beach Toll Facility and serves as the County’s leasing agent for property onSanta Rosa Island owned by the County. The County approves the SRIA’s annual budget andhas veto power over decisions of the Authority. It too is reported separately within Escambia

iv

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 virtually 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 department 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 for which an annual budget has been adopted. 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 Hurricane Ivan struck Escambia County on September 16, 2004. Hurricane Ivan damaged 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 this Category 3 hurricane, the residents and businesses of Escambia County are rebuilding their homes and the community. Although fiscal year 2005 will not be 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 is currently exploring alternate revenue sources through the State and Federal government financial assistance programs to replace the loss of ad valorem revenues. Sales tax dollars are strong and have increased due to the rebuilding efforts taking place in the County. 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.

County’s financial statements. The Housing Finance Authority (HFA) is also presentedseparately within the County’s financial statements. Although the County appoints the membersof the HFA’s board and must approve it’s budget, the HFA and the County are not substantiallythe same and the HFA does not provide services almost exclusively for the County. The LawLibrary 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 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 virtually all funds prior to October 1 of each fiscal year.During the year the County Administrator approves intra—departmental bidget amendments thatdo not change the department total budget or change the personal services budget. The Boardmust 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 theGeneral Fund, Special Revenue Funds and Capital Project Funds. Although appropriations lapseat year end, outstanding encumbrances are generally re-appropriated as a part of the followingyear's budget. The elected officials, funded as a part of the County's annual budget, maintaintheir own budgetary systems consistent with the requirements of state law. As demonstrated bythe statements 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 for whichan annual budget has been adopted. 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 andschedules section of this report.

Local Economy

Hurricane Ivan struck Escambia County on September 16, 2004. Hurricane Ivan damaged nearly51,000 homes in Escambia County, a figure that represents nearly one-half on the homes inEscambia County, with nearly 6,000 of those being complete and total losses. Despite thedestruction caused by this Category 3 hurricane, the residents and businesses of EscambiaCounty are rebuilding their homes and the community. Although fiscal year 2005 will not beadversely 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 is currently exploring alternate revenue sources through the State and Federalgovernment financial assistance programs to replace the loss of ad valorem revenues. Sales taxdollars are strong and have increased due to the rebuilding efforts taking place in the County.

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.

v

Although the property tax millage remained at 8.756 during fiscal year 2004, 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. The County population is projected to be 317,262 in the year 2010. Nearly 63% of the population is in the prime working age group of 18-64. The unemployment rate is at 3.5% and the estimated median household income for 2004 was $41,059. The building industry remains strong in Escambia County. This past year, 7,918 residential building permits were issued with a value over $278 million. Escambia County is somewhat insulated against a volatile marketplace through factors such as low unemployment and the high percentage of military personnel and retirees. 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: v Increased efforts designed to encourage business development in the area v Increased efforts designed to promote tourism to the area v Road paving and improved drainage throughout the County v Improve delivery of Neighborhood and Public Services to the highest level possible v Efforts to capitalize on alternative revenue generation without increasing the tax burden Cash Management

At the end of fiscal year 2004 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, a County Commissioner, 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 1.41% and generated over $2.3 million in investment earnings for the fiscal year ending September 30, 2004. 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 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

Although the property tax millage remained at 8.756 during fiscal year 2004, 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.

The County population is projected to be 317,262 in the year 2010. Nearly 63% of the populationis in the prime working age group of 18-64. The unemployment rate is at 3.5% and the estimatedmedian household income for 2004 was $41,059.

The building industry remains strong in Escambia County. This past year, 7,918 residentialbuilding permits were issued with a value over $278 million.

Escambia County is somewhat insulated against a volatile marketplace through factors such aslow unemployment and the high percentage of military personnel and retirees.

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:

0v Increased efforts designed to encourage business development in the area0v Increased efforts designed to promote tourism to the area

0:. Road paving and improved drainage throughout the County0v Improve delivery of Neighborhood and Public Services to the highest level possible0v Efforts to capitalize on alternative revenue generation without increasing the tax burden

Cash Management

Wfifiuififl At the end of fiscal year 2004 the County's investment portfolio9 a, " " ' {ED . consisted primarily of federal instrumentalities discount notes,' _. " -. . .§ certificates of deposit, securities held by the Florida State Board ofml; N'MWAWJL .J: Administration Local Government Pool, a bank repurchase agreement,

and 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, a County Commissioner, theCounty Administrator, and the Clerk of the Circuit Court. The investments made by the Clerk ofCourt’s Finance Department earned an average yield of 1.41% and generated over $2.3 million ininvestment earnings for the fiscal year ending September 30, 2004.

Risk Management

Escambia County has established a risk management program to retainsome risk of certain claims against the Board of County Commissioners,the Constitutional Officers, Civil Service Board, and the Santa Rosa IslandAuthority, including workers compensation and casualty and property. TheCounty is protected by sovereign immunity for all liability claims in excess

vi

of $100,000. Umbrella coverage is purchased for property claims in excess of $100,000 and worker's compensation claims in excess of $350,000. 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 22 of the past 23 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 2003. This is the ninth 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 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 Wanda M. McBrearty Ernie Lee Magaha Wanda M. McBrearty, CPA, CGFO Clerk of the Circuit Court Deputy Finance Director

of $100,000. Umbrella coverage is purchased for property claims in excess of $100,000 andworker‘s compensation claims in excess of $350,000. Additional information on EscambiaCounty’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, 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 22 of the past 23 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 2003. This is the ninth 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 all members of the departmentwho assisted and contributed to the preparation of this report. We appreciate the support andcooperation of the Board of County Commissioners and the departments that serve under themand thank the auditing firm of O'Sullivan Creel, LLP for their guidance.

Respectfully submitted,

frm'e I68 JZZja/fa q’fimtfiz 3‘20flagrant}

Ernie Lee Magaha Wanda M. McBrearty, CPA, CGFOClerk of the Circuit Court Deputy Finance Director

vi

vii

Certificate ofAchievementfor Excellencein FinancialReporting

Piesented to

Escatn'bia County,Florida

For its Compiehensive AnnualFinancial Report

for the Fiscal Year EndedSeptember 38, 2003

.n't Certificate offitehievemcnt for Excellence in FinancialReporting is presented by the Gnveumient Finenee Officers

Assnciation of the United States and Canada togovenunent units and public employee retirementfiystems whose comprehensive annual tinnnciai

reports {CAP R5} achieve the higheststandards in gevemnent aeenunting

and fineneiai Departing

%M 1‘ at Mr, ' 5‘0.391 WA @TM'a %

TIRE-WIPES' LEI E- “HI-M g“L tsrgum =3;1% mil {'3-

§ President

mfifiExecutive Diteetot

vii

viii

*See next page for additional information.

Citizens of Escambia County

Supervisor Of

Elections

Tax Collector

Property Appraiser

Board of County Commissioners

(BOCC)

Sheriff

Clerk of the Circuit Court

County Administrator*

County Attorney

BOCC Finance

SupervisorOf

Elections

//7Escambia County

Citizens of

| \

TaxCollector

PropertyAppraiser

lBoard of CountyCommissioners

(BOCC)

Sheriff Clerk of theCircuit Court

*See next page for additional information.

/ ‘x.County County

Administrator* Attorney

viii

firBOCC

Finance

ix

THE CITIZENS OF ESCAMBIA COUNTY

BOARD OF COUNTY COMMISSIONERS

IEOUNTY ADMINISTRATOR I ICOUNTY ATTORNEYI

lADMINISTRATIVE SERVICES DEPARTMENT}—O‘fioe cf I-IaDSQE'I'IE". .5: Edge:

EDT-oz cf P'Cpe'fy' Msnapsn'entContraztua Eemoes

Cali: CenterECAT31m 0 Heath Un:

Office of Purchasing

‘Ifice of Public Information 8. CommunicationCcn'n'un 7y REIatcnsTour 51 :IDI‘TEEID"

Human Resources DepartmentErna'oy'ee Eem'oss .3 BenefitsD‘Iioa of Risk Mragewmt

Economic Development

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

Assistant C o unty Administrator Assistant Co unty Administrator

—INFORMATICJN RESOURCES

FLII‘I‘IHIEEITIIIGI':I-Iecwor-z SEWIE'SG EE-‘ysien's Sermoas

— ROAD DEPARTMENTfirmsnist'atcnFlee: In’airce'anaeR0325 6: E'idgesRose :riscnFue Dist-Emilio"

— PLANNING AND ENGINEERIN I3Ad'n ':s:r3'..-:nCcnslruncn Wnagerrerr.Deuelom'enl ServicesLow Range Penn “9TeonnrzaTraFc Engineering

—BU|LD|NG INSPECTIONS DEPARTMENT

Am’inist'aticnCort-.rajor LicemsngPen-ritln; 3 Inspectio's

—SOLID WASTE MANAGEMENT

Adrrinrstraficr.

Gem ces

Gaze EnforcenrtEngmer “g S Enuiro'mental Quality.and'ii: Ciceratio'sRezy'ciln;

Ann'istrszmCcn'n'unty Redoueioprr'en'.

_ n1Ermnmrrern. wait-jEscarbis. ::.:i| and 'a‘a'aler Cons #3120" II sinmharbor—cod E'tsrpréae Fou'dafion. "o.I'Jcsquzo ManagementMarine Rte-scones

—EN'I.'IRON!‘IENTAL HEALTH

— FACILITIES MANAGEMENT DEPARTMENT—-’4.-:n1nist'ahc:n_Custcdial—DCA‘—I.Ia:".sn3n:e—_eiso:rrrn-ni:aiions E; II. 1355

— PARKS AND RECREATION DEPARTMENT—.-".-:rrinist'ah'cn & Spec al ”roasts—E-:uestrian Cent?— Lake Stine Ilarrpg‘cunz—I.Ia. .snanze rd Capital fiio‘cuerrents—Re:re'.'.-:n and E-ceo'a! Sex-cos

_CDMMUNITY SERVICES DEPARTMENT—.-‘—dr1ir-stra'.i0'—-I.man P65151305—=un 0 3:0 3: Ber-mes

— PUBLIC SAFETY DEPARTMENTAdrrinistratonConnu"icaiicn5En'EIQE-"Uy Manage-"12'".Emergency Ned-:3 ServicesEME Dpe‘atcns.finin'a! Regsancn .5 Com:

—EXTENSIDN SERVICES

— NEIGHBORHOOD S EN‘HRON MENTAL SERVICES DEPARTMENT

x

COUNTY COMMISSIONERS

Clifford W. Barnhart, District 1 William “Bill” Dickson, District 2 Marie Young, District 3 – Chair

Thomas G. “Tom” Banjanin, District 4 - Vice Chair Janice E. Gilley, District 5

OTHER ELECTED OFFICIALS

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

Janet Holley, Tax Collector Chris Jones, Property Appraiser

Bonnie Jones, Supervisor of Elections

OTHER OFFICIALS

George Touart, County Administrator Janet Lander, County Attorney

COUNTY COMMISSIONERS

Clifford W. Barnhart, District 1William “Bill” Dickson, District 2Marie Young, District 3 — Chair

Thomas G. “Tom” Banjanin, District 4 - Vice ChairJanice E. Gilley, District 5

OTHER ELECTED OFFICIALS

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

Janet Holley, Tax CollectorChris Jones, Property Appraiser

Bonnie Jones, 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,LLPn Certified Public Accountants a Consultants

316 South Baylen St - Sutte 200 ' Pensacola FL 32502

REPORT OF INDEPENDENT AUDITORS

Honorable Board of County CommissionersEscambia County, Florida

We have audited the accompanying financial statements of the governmental activities, the

business-"type activities, the aggregate discretely presented component units, each major fund,

and the aggregate remaining fund information of Escanihia County, Florida, as of and for the

year ended September 30, 2004, which collectively comprise the County’s basic financial

statements as listed in the tabie of contents, These financial statements are the responsibility of

Escarnbia County, Florida’s management, Our responsibility is to express opinions on these

financial statements based on our audit, We did not audit the financial statements of the

following component units, as of and for the year ended September 30, 2004, which statements

reflect total assets and total revenues as displayed below:

Total Total Type ofAssets Revenues Component Unit

Escamhia County HousingFinance Authority S 6,373,876 3% 963,5 60 Business Type Activities—Discrete

Santa Rosa Island Authority $35,201,751 SS 5,588,206 Business Type Activities~Discrete

Those financial statements were audited by other auditors whose reports have been furnished to

us, and our opinion, insofar as it relates to the amounts included for the component units in the

business—type activities component unit column, is based solely on the reports of the other

auditors,

We conducted our audit in accordance with auditing standards generally accepted in the United

States of America and the standards applicable to financial audits contained in Government

Auditing Standards, issued by the Comptroller General of the United States, Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement, An audit includes examining, on a testbasis, evidence supporting the amounts and disclosures in the financial statements, An audit alsoincludes assessing the accounting principles used and significant estimates made by

management, as well as evaluating the overall financial statement presentation. We believe thatour audit and the reports of other auditors provide a reasonable basis for our opinions,

RSM MtGladtey NetworkAn independently Owned Member _ 1 -

...IIH

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, 2004, and the respective changes in financial position andcash flows, Where applicable, 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 28, 2005 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 analysis 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 all 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.

Wécm M LAPJanuary .28, 2005

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, 2004. 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 v The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by

$403,333,885 for fiscal year 2004. Of this amount, $39,043,293 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. Unrestricted net assets decreased $9,164,511 from the previous year.

v The County’s total net assets this fiscal year increased $21,237,018 from the previous year with

an increase of $19,486,814 resulting from governmental activities and an increase of $1,750,204 resulting from business-type activities.

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

balances of $130,673,382 an increase of $4,259,759 in comparison with the prior year. Of this amount, $90,858,209 remains in the various fund types of the County as unreserved.

v The General Fund reported an unreserved fund balance of $19,067,230; an increase from last

fiscal year of $1,975,293. v Escambia County’s total bonded debt, leases and loans decreased $5,093,904 from the previous

fiscal year. The key factor in this decrease was 46% greater debt payments than debt issuances. v Governmental Funds’ revenues increased $28,571,194 or 12.9% over the prior fiscal year. The

largest reason for this increase was due to the Federal Emergency Management Agency (FEMA) dollars and insurance reimbursements paid to the County due to Hurricane Ivan.

v Excluding the $32,000,000 transfer made last fiscal year to the Santa Rosa Island Authority

(SRIA) for the beach nourishment and road improvement projects, governmental funds’ expenditures for fiscal year 2004 experienced a 10% increase in spending in various areas such as public safety, transportation, economic environment, human services and capital improvements.

v Interest rates continued to fall over the last fiscal year, resulting in reduced interest earnings for

the County. The County’s average interest rate fell from 1.59% in 2003 to 1.41% in 2004.

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, 2004. 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

0:. The assets of Escambia County exceeded its liabilities (net assets) as of September 30th, by$403,333,885 for fiscal year 2004. Of this amount, $39,043,293 (unrestricted net assets) may beused to meet the government’s ongoing obligations to citizens and creditors. Unrestricted netassets decreased $9,164,511 from the previous year.

0:. The County’s total net assets this fiscal year increased $21,237,018 from the previous year withan increase of $19,486,814 resulting from governmental activities and an increase of $1,750,204resulting from business-type activities.

0:. At September 30, Escambia County’s governmental funds reported combined ending fundbalances of $130,673,382 an increase of $4,259,759 in comparison with the prior year. Of thisamount, $90,858,209 remains in the various fund types of the County as unreserved.

0:. The General Fund reported an unreserved fund balance of $19,067,230; an increase from lastfiscal year of $1,975,293.

0:. Escambia County's total bonded debt, leases and loans decreased $5,093,904 from the previousfiscal year. The key factor in this decrease was 46% greater debt payments than debt issuances.

0:. Governmental Funds’ revenues increased $28,571,194 or 12.9% over the prior fiscal year. Thelargest reason for this increase was due to the Federal Emergency Management Agency (FEMA)dollars and insurance reimbursements paid to the County due to Hurricane Ivan.

0:. Excluding the $32,000,000 transfer made last fiscal year to the Santa Rosa Island Authority(SRIA) for the beach nourishment and road improvement projects, governmental funds’expenditures for fiscal year 2004 experienced a 10% increase in spending in various areas suchas public safety, transportation, economic environment, human services and capitalimprovements.

0:. Interest rates continued to fall over the last fiscal year, resulting in reduced interest earnings forthe County. The County's average interest rate fell from 1.59% in 2003 to 1.41% in 2004.

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, 2004. 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 six major funds, the General Fund, the Disaster Recovery Fund, the Transportation and Drainage Fund, the Debt Service Fund, the Capital Improvement Program 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

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, 2004.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 six major funds, theGeneral Fund, the Disaster Recovery Fund, the Transportation and Drainage Fund, the Debt ServiceFund, the Capital Improvement Program Fund, and the Local Option Sales Tax Fund. Although there aremany smaller governmental funds in Escambia County’s government, they have been presented in a total

5

column termed as “other 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 its general fund, special revenue funds (except for the General Trust Fund), debt service fund, and capital projects 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 greater detail, the same information presented as business-type activities in the government-wide financial statements for landfill operations, inspections, emergency medical services, civic center, and industrial parks. Inspections and emergency medical services 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 an internal service fund 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. The internal service fund is presented in the Proprietary Funds’ financial statements. 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 enterprise funds, includes schedules for nonmajor special revenue funds, capital project funds, enterprise 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 third 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, 2004 and 2003 are included in the analysis.

column termed as “other governmental funds.” Combining statements for these other governmentalfunds have been presented in the combining statements and schedules section of this report.

Escambia County adopts an annual appropriated budget for its general fund, special revenue funds(except for the General Trust Fund), debt service fund, and capital projects funds. Budgetary comparisonstatements 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 greater detail, the same information presented as business-type activities inthe government-wide financial statements for landfill operations, inspections, emergency medicalservices, civic center, and industrial parks. Inspections and emergency medical services are presented inone 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 forEscambia County’s government. The County uses an internal service fund 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.The internal service fund is presented in the Proprietary Funds’ financial statements.

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 enterprise funds, includesschedules for nonmajor special revenue funds, capital project funds, enterprise funds, and agency funds.Additional information about the County is found under the Statistical and Continuing Disclosure sectionsof this report.

Government-Wide Financial Analysis

This is the third 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, 2004 and 2003 are included in the analysis.

6

Escambia County, Florida

Net Assets

Governmental Business-type Activities Activities Total 2004 2003 2004 2003 2004 2003 Current and other assets $179,785,581 $161,508,167 $17,430,465 $19,610,048 $197,216,046 $181,118,215 Capital assets 426,095,530 410,536,379 48,137,197 44,301,985 474,232,727 454,838,364

Total assets 605,881,111 572,044,546 65,567,662 63,912,033 671,448,773 635,956,579 Long-term liabilities 220,159,483 222,311,663 11,277,116 11,057,125 231,436,599 233,368,788

Other liabilities 33,078,847 16,576,916 3,599,442 3,914,008 36,678,289 20,490,924 Total liabilities 253,238,330 238,888,579 14,876,558 14,971,133 268,114,888 253,859,712 Net assets: Invested in capital assets net of related debt 279,785,705 259,610,770 44,689,714 40,298,499 324,475,419 299,909,269 Restricted 39,815,173 33,979,794 0 0 39,815,173 33,979,794

Unrestricted 33,041,903 39,565,403 6,001,390 8,642,401 39,043,293 48,207,804

$352,642,781 $333,155,967 $50,691,104 $48,940,900 $403,333,885 $382,096,867

The overall financial position of the County improved in both fiscal years 2004 and 2003. 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, 2004 and 2003 amounted to $21,237,018 and $15,261,591, respectively. Overall, the County experienced an increase in net assets of 5.5%. Escambia County’s growth rate continued during fiscal year 2004; the County’s unemployment rate went down 12.5% and remains 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 2004, the County is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for it’s separate governmental and business-type activities. The County’s unrestricted net assets at September 30, 2004 decreased $9,164,511 from 2003. The County’s restricted net assets increased from 2003 by $5,835,379. 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, FloridaNet Assets

Governmental Business-typeActivities Activities Total

Current and other assetsCapital assets

Total assets

Long-term liabilities

Other liabilitiesTotal liabilities

Net assets:Invested in capital assets

net of related debtRestricted

Unrestricted

2004 2003 2004 2003 2004 2003

$179,785,581426,095,530

$161,508,167410,536,379

$17,430,46548,137,197

$19,610,04844,301,985

$197,216,046474,232,727

$181,118,215454,838,364

605,881,111

220,159,48333,078,847

253,238,330

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

$352,642,781

572,044,546

222,311,66316,576,916

238,888,579

259,610,77033,979,79439,565,403

$333,155,967

65,567,662

11,277,1163,599,442

14,876,558

44,689,7140

6,001,390$50,691,104

63,912,033

11,057,1253,914,008

14,971,133

40,298,4990

8,642,401$48,940,900

671,448,773

231,436,59936,678,289

268,1 14,888

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

$403,333,885

635,956,579

233,368,78820,490,924

253,859,712

299,909,26933,979,79448,207,804

$382,096,867

The overall financial position of the County improved in both fiscal years 2004 and 2003. 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 30,2004 and 2003 amounted to $21,237,018 and $15,261,591, respectively. Overall, the Countyexperienced an increase in net assets of 5.5%. Escambia County’s growth rate continued during fiscalyear 2004; the County’s unemployment rate went down 12.5% and remains below the national and stateaverage. This trend supports a positive fiscal outlook for Escambia County.

As in the prior year, at the end of the fiscal year 2004, the County is able to report positive balances in allthree categories of net assets, both for the government as a whole, as well as for it’s separategovernmental and business-type activities. The County’s unrestricted net assets at September 30, 2004decreased $9,164,511 from 2003. The County’s restricted net assets increased from 2003 by$5,835,379. Unrestricted net assets are County resources that may be used to meet the County'songoing obligations to citizens and creditors while restricted net assets are resources subject to externalrestriction.

7

Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery and equipment, as a percentage of net assets, amounts to 80% and 78% at September 2004, and 2003, 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. Cash and investment accounts of the County’s funds increased a total of $3,377,342 from the previous year, increasing $5,290,650 of that amount in the current asset category and decreasing $1,913,308 in the restricted asset category. Unspent lease proceeds were the major source of the increase. 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, 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

Fiscal year ending September 30, 2003: Current unrestricted assets $159,467 $14,125 Current unrestricted liabilities $16,577 $3,622 Ratio of current assets to current liabilities 9.62 3.90

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

2004 2003 2004 2003

Net Capital Assets

Restricted Net Assets

Unrestricted Net Assets

300,000,000

250,000,000 -

200,000,000 -

150,000,000 -

|:I NetCapitalAssets

Restricted NetAssets

|:I Unrestricted NetAssets

100,000,000 -—

50,000,000 -—

.rr 2 a2004 l 2003 ‘ 2004 I 2003

Escambia County’s investment in capital assets such as land, roads, parks, buildings, machinery andequipment, as a percentage of net assets, amounts to 80% and 78% at September 2004, and 2003,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.

Cash and investment accounts of the County’s funds increased a total of $3,377,342 from the previousyear, increasing $5,290,650 of that amount in the current asset category and decreasing $1,913,308 inthe restricted asset category. Unspent lease proceeds were the major source of the increase.

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)

Governmental Business-typeActivities Activities

Fiscal year ending September 30, 2004:

Current unrestricted assets $177,748 $13,932Current unrestricted liabilities $33,006 $3,218Ratio of current assets to current liabilities 5.39 4.33

Fiscal year ending September 30, 2003:

Current unrestricted assets $159,467 $14,125Current unrestricted liabilities $16,577 $3,622Ratio of current assets to current liabilities 9.62 3.90

8

The main factor for the increase in governmental-type liabilities is the increased activity across all funds due to Hurricane Ivan. At September 30, 2004, there were a number of invoices being processed for payment for which checks were not cut until October 2004. 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, 2004

Governmental Business-type Activities Activities Totals 2004 2003 2004 2003 2004 2003 Revenues: Program Revenues: Charges for Services $48,231,562 $43,451,052 $28,137,451 $24,237,909 $76,369,013 $67,688,961 Operating Grants and Contributions 14,699,665 12,472,683 408 21,097 14,700,073 12,493,780

Capital Grants and Contributions 16,878,811 7,470,179 2,980,413 1,380,745 19,859,224 8,850,924 General Revenues: Property Taxes 85,558,122 80,315,156 0 0 85,558,122 80,315,156 Other Taxes 68,252,393 65,557,769 0 1,426,110 68,252,393 66,983,879 Other 22,589,675 14,412,889 1,445,901 1,096,190 24,035,576 15,509,079

Total Revenues 256,210,228 223,679,728 32,564,173 28,162,051 288,774,401 251,841,779 Expenses: General Government 30,841,180 32,475,261 0 0 30,841,180 32,475,261

Public Safety 129,147,683 105,844,911 0 0 129,147,683 105,844,911 Physical Environment 1,081,449 11,608,537 0 0 1,081,449 11,608,537 Transportation 48,510,758 74,160,788 0 0 48,510,758 74,160,788 Economic Environment 12,049,668 11,194,640 0 0 12,049,668 11,194,640 Human Services 4,706,530 4,340,688 0 0 4,706,530 4,340,688 Culture/Recreation 4,179,058 4,187,822 0 0 4,179,058 4,187,822 Interest on Long-Term Debt 7,517,482 8,584,343 0 0 7,517,482 8,584,343

Landfill Operations 0 0 8,411,321 6,702,610 8,411,321 6,702,610 Building Inspections 0 0 3,306,029 3,217,414 3,306,029 3,217,414 Ambulance Service 0 0 11,760,637 11,076,762 11,760,637 11,076,762 Civic Center 0 0 5,244,904 5,046,735 5,244,904 5,046,735 Industrial Parks 0 0 780,684 507,575 780,684 507,575 Total Expenses 238,033,808 252,396,990 29,503,575 26,551,096 267,537,383 278,948,086 Landfill Closure Estimate 0 0 0 10,367,898 0 10,367,898

Increase (Decrease) in Net Assets before Transfers 18,176,420 (28,717,262) 3,060,598 11,978,853 21,237,018 (16,738,409)Transfers 1,310,394 (5,589,390) (1,310,394) 5,589,390 0 0 Increase (Decrease) in Net Assets 19,486,814 (34,306,652) 1,750,204 17,568,243 21,237,018 (16,738,409)Net Assets, beginning 333,155,967 367,462,619 48,940,900 31,372,657 382,096,867 398,835,276

Net Assets, ending $352,642,781 $333,155,967 $50,691,104 $48,940,900 $403,333,885 $382,096,867

The main factor for the increase in governmental-type liabilities is the increased activity across all fundsdue to Hurricane Ivan. At September 30, 2004, there were a number of invoices being processed forpayment for which checks were not cut until October 2004.

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, 2004

Governmental Business-type

Revenues:Program Revenues:

Charges for ServicesOperating Grants and

Contributions

Capital Grants andContributions

General Revenues:Property TaxesOther Taxes

Other

Total Revenues

Expenses:General Government

Public SafetyPhysical EnvironmentTransportationEconomic EnvironmentHuman ServicesCulture/RecreationInterest on Long-Term Debt

Landfill OperationsBuilding InspectionsAmbulance ServiceCivic CenterIndustrial Parks

Total Expenses

Landfill Closure Estimate

Increase (Decrease) in Net Assetsbefore Transfers

TransfersIncrease (Decrease) in Net AssetsNet Assets, beginning

Net Assets, ending

Activities Activities Totals2004 2003 2004 2003 2004 2003

$48,231,562

14,699,665

16,878,811

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

$43,451,052

12,472,683

7,470,179

80,315,15665,557,76914,412,889

$28,137,451 $24,237,909

408

2,980,413

00

1,445,901

21,097

1,380,745

01,426,1101,096,190

$76,369,013

14,700,073

19,859,224

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

$67,688,961

12,493,780

8,850,924

80,315,15666,983,87915,509,079

256,210,228 223,679,728 32,564,173 28,162,051 288,774,401 251,841,779

30,841,180129,147,683

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

OO

OO

O

32,475,261105,844,911

11,608,53774,160,78811,194,6404,340,6884,187,8228,584,343

00

00

0

00

00

00

00

8,411,3213,306,029

11,760,6375,244,904

780,684

00

00

00

0

06,702,6103,217,414

11,076,7625,046,735

507,575

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

780,684

32,475,261105,844,911

11,608,53774,160,78811,194,6404,340,6884,187,8228,584,3436,702,6103,217,414

11,076,7625,046,735

507,575238,033,808

18,176,4201,310,394

252,396,990

(28,717,262)(5,589,390)

29,503,575

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

26,551,096

10,367,898

11,978,8535,589,390

267,537,383

21,237,0180

278,948,086

10,367,898

(16,738,409)0

19,486,814333,155,967

(34,306,652)367,462,619

1,750,20448,940,900

17,568,24331,372,657

21 ,237,018382,096,867

(16,738,409)398,835,276

$352,642,781 $333,155,967 $50,691,104 $48,940,900 $403,333,885 $382,096,867

9

Governmental Activities Overall, increased revenues and decreased expenses over fiscal year 2003 can be noted in the governmental activity in fiscal year 2004. As noted in the Financial Highlights, if you exclude the $10,000,000 payment in fiscal year 2003 to SRIA in the physical environment category, there is a small decrease in fiscal year 2004’s expenses for physical environment. Excluding the $22,000,000 payment to SRIA for transportation, fiscal year 2004 shows a 15% increase in transportation related expenses. Another large increase (22%) in the public safety category reflects increased costs due to Hurricane Ivan, as well as the County’s commitment to efficiently 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 1.2% in this fiscal year and less than 1% in fiscal year 2003. These overall increased revenues and decreased costs caused governmental net assets to increase $19,486,814 from last year’s net assets increase of $2,306,652 (excluding the $32,000,000 transfer to SRIA mentioned earlier).

G

ener

al g

over

nmen

t

P

ublic

saf

ety

P

hysi

cal e

nviro

nmen

t

T

rans

port

atio

n

E

cono

mic

env

ironm

ent

H

uman

ser

vice

s

C

ultu

re a

nd r

ecre

atio

n

C

ourt

rel

ated

In

tere

st o

n lo

ng te

rm d

ebt

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

$80,000,000

$90,000,000

Do

llars

Governmental Activities - Expenses and Program RevenuesFor the Fiscal Year 2004

Expenses

Program Revenues

Governmental Activities

Overall, increased revenues and decreased expenses over fiscal year 2003 can be noted in thegovernmental activity in fiscal year 2004. As noted in the Financial Highlights, if you exclude the$10,000,000 payment in fiscal year 2003 to SRIA in the physical environment category, there is a smalldecrease in fiscal year 2004’s expenses for physical environment. Excluding the $22,000,000 payment toSRIA for transportation, fiscal year 2004 shows a 15% increase in transportation related expenses.Another large increase (22%) in the public safety category reflects increased costs due to Hurricane Ivan,as well as the County’s commitment to efficiently 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 1.2% in this fiscal year and less than 1% in fiscal year 2003.

These overall increased revenues and decreased costs caused governmental net assets to increase$19,486,814 from last year’s net assets increase of $2,306,652 (excluding the $32,000,000 transfer toSRIA mentioned earlier).

Governmental Activities - Expenses and Program RevenuesFor the Fiscal Year 2004

'l$90,000,0001’fi

$80,000,000 —

$70,000,000 -/

$60,000,000 -/ ‘

$50,000,000 —

Dol

lars

$40,000,000 —/ ‘

$30,000,000—

U Ex enses$20,000,000 —/ p

Program Revenues

$10,000,000 —/ l-iG

ener

algo

vern

men

t

Publi

csa

fety

‘

Phys

ical

envi

ronm

ent

Tran

spor

tatio

n‘

Econ

omic

envir

onm

ent

Huma

nse

rvice

s

Cultu

rean

dre

crea

tion

Court

relate

d—

Inte

rest

onlo

ngter

mde

bt

10

Business-type Activities Business-type activities increased the County’s net assets by $1,750,204 for the fiscal year 2004 as compared to an increase of $17,568,243 for fiscal year 2003. Key elements of difference between the years can be explained as follows: v Due to a change in estimate of the landfill’s closure and postclosure care costs, the Solid Waste

Fund reduced the landfill closure and postclosure care liability, which offset their expenses for the year 2003 by $10,367,898. In contrast, fiscal year 2004 had expenses of almost $1 million due to an inflation factor of 1.015% on the landfill’s estimated closure and postclosure care costs.

v Continued activity in the development of the County’s two industrial parks resulted in an increase

of about $1.6 million grant revenues to help fund those projects. v Due to the 2003 refunding of the Tourist Development Bonds, there were no fiscal year 2004

transfers into the Civic Center for Debt Service purposes. This reduced the income by $5,811,384.

Governmental Activities - Revenue by SourceFor the Fiscal Year 2004

Charges for Services19%

Operating grants and contributions9%

Capital grants and contributions4%

Property taxes35%

Sales taxes20%

State shared revenue3%

Miscellaneous revenues2%

Sale of assets0%

Unrestricted interest1%

Gas taxes5%

Payments in lieu of taxes0 %

Licenses, permits, and franchise fees0%

Tourist development taxes2%

Rents and royalties0%

Governmental Activities - Revenue by SourceFor the Fiscal Year 2004

Sale of assets0%

Miscellaneous revenues

Rents and royalties0%

Unrestricted interest

Charges for ServicesGas taxes 19%

Sales taxes20%


State snared reven ueCapital grants and contributions

uLicenses, permits, and franchise fees 4/“

a

Pro e taxesPayments in lieu of taxes p rty

0%

Tourist development taxes2%

Business-type Activities

Business-type activities increased the County’s net assets by $1,750,204 for the fiscal year 2004 ascompared to an increase of $17,568,243 for fiscal year 2003. Key elements of difference between theyears can be explained as follows:

0:. Due to a change in estimate of the landfill’s closure and postclosure care costs, the Solid WasteFund reduced the landfill closure and postclosure care liability, which offset their expenses for theyear 2003 by $10,367,898. In contrast, fiscal year 2004 had expenses of almost $1 million due toan inflation factor of 1.015% on the landfill’s estimated closure and postclosure care costs.

0v Continued activity in the development of the County’s two industrial parks resulted in an increaseof about $1.6 million grant revenues to help fund those projects.

0v Due to the 2003 refunding of the Tourist Development Bonds, there were no fiscal year 2004transfers into the Civic Center for Debt Service purposes. This reduced the income by$5,811,384.

10

11

$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

Solid Waste Civic Center Inspections Ambulance Economic Development

Business-type ActivitiesExpenses and Program Revenues

For the Fiscal Year 2004

Expenses

Program Revenues

Business-type ActivitiesRevenues by Source


Charges for services70%



Licenses and permits11%

Franchise fees5%

Interest revenues1%

Other1%

Business-type ActivitiesExpenses and Program Revenues


$12,000,000

$11,000,000

$10,000,000

$9,000,000

$8,000,000

$7,000,000El Expenses

$6,000,000Program Revenues

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$0Solid Waste CivicCenter Inspections Ambulance Economic Development

Business-type ActivitiesRevenues by Source


Other1%

Interest revenues1%

Franchise fees5%

Licenses and permits1 1 ”/n


Operating grants and contributiona

O A) Charges for sen/ices70%

11

12

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, 2004, Escambia County governmental funds reported combined fund balances of $130,673,382, an increase of $4,259,759 over prior year balances. Governmental funds reserved $19,936,034 of fund balance to meet current commitments in the next fiscal year, $1,047,282 for inventory, $10,313,823 for advances made to other funds, and $8,518,034 to meet debt service requirements next fiscal year. Major Fund Information (in Thousands)

Transportation Capital Local General Disaster and Debt Improvement Option Sales Fund Recovery Drainage Service Program Tax (LOST) Fiscal Year 2004 Revenues and other sources $143,905 $11,789 $18,489 $17,285 $3,951 $32,836 Expenditures and other sources 141,579 9,122 21,505 16,954 17,400 23,111

Increase (decrease) in fund balance $2,326 $2,667 ($3,016) $331 ($13,449) $9,725

Fiscal Year 2003 Revenues and other sources $139,331 $0 $20,936 $67,939 $127,181 $35,293 Expenditures and other sources 137,431 0 19,875 71,553 88,493 29,731

Increase (decrease) in fund balance $1,900 $0 $1,061 ($3,614) $38,688 $5,562

The General Fund is the chief operating fund of the County. At September 30, 2004, total fund balance in the general fund was $20,250,286 of which $19,067,230 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 14% and 13%, respectively. The fund balances of the County’s General Fund increased by $2,326,464 during the current fiscal year. Key factors in this increase are as follows: v Even though the millage rate remained constant at 8.756 mills, the County experienced an

increase in property tax revenues of $5,242,966 due to an increase in assessed/taxable property values.

v Total revenues increased 3% from fiscal year 2003 while expenditures decreased 1% from fiscal

year 2003. v Transfer activity from the general fund increased 18%, with increased transfers going to the Mass

Transit Fund, the CRA Fund, and the Article V 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, 2004, Escambia County governmental funds reported combined fund balances of$130,673,382, an increase of $4,259,759 over prior year balances. Governmental funds reserved$19,936,034 of fund balance to meet current commitments in the next fiscal year, $1,047,282 forinventory, $10,313,823 for advances made to other funds, and $8,518,034 to meet debt servicerequirements next fiscal year.

Major Fund Information (in Thousands)

Transportation Capital LocalGeneral Disaster and Debt Improvement Option Sales

Fund Recovery Drainage Service Program Tax (LOST)Fiscal Year 2004Revenues and other sources $143,905 $11,789 $18,489 $17,285 $3,951 $32,836Expenditures and other sources 141,579 9,122 21,505 16,954 17,400 23,111

Increase (decrease) in fund balance $2,326 $2,667 ($3,016) $331 ($13,449) $9,725

Fiscal Year 2003Revenues and other sources $139,331 $0 $20,936 $67,939 $127,181 $35,293Expenditures and other sources 137,431 0 19,875 71,553 88,493 29,731

Increase (decrease) in fund balance $1,900 $0 $1,061 ($3,614) $38,688 $5,562

The General Fund is the chief operating fund of the County. At September 30, 2004, total fund balancein the general fund was $20,250,286 of which $19,067,230 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 14% and 13%, respectively. The fund balances of the County’sGeneral Fund increased by $2,326,464 during the current fiscal year. Key factors in this increase are asfollows:

0:. Even though the millage rate remained constant at 8.756 mills, the County experienced anincrease in property tax revenues of $5,242,966 due to an increase in assessed/taxable propertyvalues.

0:. Total revenues increased 3% from fiscal year 2003 while expenditures decreased 1% from fiscalyear 2003.

0:. Transfer activity from the general fund increased 18%, with increased transfers going to the MassTransit Fund, the CRA Fund, and the Article V Fund.

12

13

The Other Major Governmental Funds include the Disaster Recovery Fund, Transportation and Drainage Fund, Debt Service Fund, Capital Improvement Program Fund, and the Local Option Sales Tax (LOST) Fund. Data for these funds is presented above for fiscal years 2004 and 2003. The Disaster Recovery Fund was established this fiscal year to account for all the financing provided from various State and Federal grants, such as the Federal Emergency Management Agency (FEMA). The County will also be receiving various insurance reimbursements through this fund. On September 16, 2004, Escambia County was struck by Hurricane Ivan (a Category 3 hurricane) which caused major and widespread destruction across Escambia County. The County’s recovery efforts and FEMA reimbursements will be tracked in this fund. At September 30, 2004, there were reimbursable expenditures of $7,571,607. 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 LOST imposed on Escambia County is used by the LOST Fund to acquire and construct capital projects within the County. The Transportation Fund received $4 million in lease proceeds in fiscal year 2003 for the purchase of various pieces of heavy equipment. There were no additional lease proceeds in fiscal year 2004. Other than the lease activity, revenues and expenditures in the Transportation and Drainage Fund appear to remain stable over the two-year period. 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, 2004, total net asset amounted to $50,691,104 for enterprise funds, as compared to $48,940,900 at September 30, 2003. 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 $1,750,204 over fiscal year 2003, a 4% increase. Operating income is the result of operating revenues less operating expenses. The chart below compares operating income or loss for all enterprise funds. While operating revenues in the Solid Waste Fund remained fairly stable, the fund experienced an increase in operating expenses of nearly 26%. Depreciation and landfill closure costs account for about half of that change. The re-organization and merging of the Code Enforcement Division from the General Fund into the Solid Waste Fund accounts for the majority of the increase in personal services. There was also an increase in the areas of advertising and contractual services. During fiscal year 2004, the County more aggressively advertised the electronics recycling and regional roundup programs for hazardous materials. Although the Civic Center saw an increase in operating revenues of $369,509, there was an offsetting increase in contractual services of $682,186. 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 development of the County’s two commerce parks. Once the infrastructure is in place, the land sites are 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 2004 were $258,770. The Inspection Fund experienced a 42% increase in operating revenues this year as compared to fiscal year 2003. While maintaining expenses at a steady level for both fiscal year 2004 and 2003, the Inspection Fund was able to enjoy an operating income this year of $540,355.

The Other Major Governmental Funds include the Disaster Recovery Fund, Transportation andDrainage Fund, Debt Service Fund, Capital Improvement Program Fund, and the Local Option Sales Tax(LOST) Fund. Data for these funds is presented above for fiscal years 2004 and 2003.

The Disaster Recovery Fund was established this fiscal year to account for all the financing provided fromvarious State and Federal grants, such as the Federal Emergency Management Agency (FEMA). TheCounty will also be receiving various insurance reimbursements through this fund. On September 16,2004, Escambia County was struck by Hurricane Ivan (a Category 3 hurricane) which caused major andwidespread destruction across Escambia County. The County’s recovery efforts and FEMAreimbursements will be tracked in this fund. At September 30, 2004, there were reimbursableexpenditures of $7,571,607.

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 LOST imposed on Escambia County is used by the LOST Fund to acquire and constructcapital projects within the County. The Transportation Fund received $4 million in lease proceeds in fiscalyear 2003 for the purchase of various pieces of heavy equipment. There were no additional leaseproceeds in fiscal year 2004. Other than the lease activity, revenues and expenditures in theTransportation and Drainage Fund appear to remain stable over the two-year period.

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, 2004, total net asset amounted to $50,691,104 for enterprise funds,as compared to $48,940,900 at September 30, 2003. 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 $1,750,204 over fiscal year 2003, a 4% increase.

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

While operating revenues in the Solid Waste Fund remained fairly stable, the fund experienced anincrease in operating expenses of nearly 26%. Depreciation and landfill closure costs account for abouthalf of that change. The re-organization and merging of the Code Enforcement Division from the GeneralFund into the Solid Waste Fund accounts for the majority of the increase in personal services. Therewas also an increase in the areas of advertising and contractual services. During fiscal year 2004, theCounty more aggressively advertised the electronics recycling and regional roundup programs forhazardous materials.

Although the Civic Center saw an increase in operating revenues of $369,509, there was an offsettingincrease in contractual services of $682,186. 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 thedevelopment of the County’s two commerce parks. Once the infrastructure is in place, the land sites aresold to prospective business ventures as part of the County’s economic development plan to bringindustry to the area. Land sales in fiscal year 2004 were $258,770.

The Inspection Fund experienced a 42% increase in operating revenues this year as compared to fiscalyear 2003. While maintaining expenses at a steady level for both fiscal year 2004 and 2003, theInspection Fund was able to enjoy an operating income this year of $540,355.

13

14

The Ambulance Fund experienced a modest 8% increase in their operating revenue during fiscal year 2004. Excluding an increase in depreciation, and a slight increase in personal services, the Ambulance Fund was able to generate a net operating income of $45,667 this fiscal year. Operating Income (Loss) 2004 2003 Solid Waste Fund $845,310 $2,461,898 Civic Center Fund (1,851,680) (1,825,877)Economic Development and Industrial Fund 2,330,006 1,002,548 Inspection Fund 540,355 (510,552)Ambulance Fund 45,667 (229,013) Total $1,909,658 $899,004

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 Fund. The Internal Service Fund is designed to recover the internal costs of general services provided to the other fund groups. Although total net assets decreased this fiscal year by $3,033,784, it was actually a smaller decrease than last year by 21.9%. Losses were once again posted for the Internal Service Fund. Increased costs in the County’s insurance programs accounted for most of the change and were a result of continuously increasing workers compensation claims filed and additional funding for insurance claims incurred but not reported. The net asset total for the internal service fund is ($5,415,459) and ($2,381,675) for the fiscal years 2004 and 2003, 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. Although the ad valorem taxes collected in fiscal year 2004 were 6% greater than in fiscal year 2003, 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 unfavorable variance in investment income is due to the low interest rates that prevailed in the market during the entire fiscal year. Differences between the original budgeted expenditures and the final amended budget were relatively minor with an increase of $1,606,291 in appropriations, and can be briefly summarized as follows: v Increase in general government activities of $560,120 v Increase in public safety activities of $1,109,618 v Increase in transportation of $85,000 v Decrease in human services of $234,967 v Decrease in culture and recreation of $16,520 v Increase in debt service of $70,000

The Ambulance Fund experienced a modest 8% increase in their operating revenue during fiscal year2004. Excluding an increase in depreciation, and a slight increase in personal services, the AmbulanceFund was able to generate a net operating income of $45,667 this fiscal year.

Operating Income (Loss)2004 2003

Solid Waste Fund $845,310 $2,461,898Civic Center Fund (1,851,680) (1,825,877)Economic Development and Industrial Fund 2,330,006 1,002,548Inspection Fund 540,355 (510,552)Ambulance Fund 45,667 (229,013)

Total $1,909,658 $899,004

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 Fund. The Internal Service Fund is designed to recover the internal costs of generalservices provided to the other fund groups. Although total net assets decreased this fiscal year by$3,033,784, it was actually a smaller decrease than last year by 21.9%. Losses were once again postedfor the Internal Service Fund. Increased costs in the County’s insurance programs accounted for most ofthe change and were a result of continuously increasing workers compensation claims filed and additionalfunding for insurance claims incurred but not reported. The net asset total for the internal service fund is($5,415,459) and ($2,381,675) for the fiscal years 2004 and 2003, 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.

Although the ad valorem taxes collected in fiscal year 2004 were 6% greater than in fiscal year 2003, acomparison of final budget to actual general fund revenues show a difference for taxes that is attributableto lower than anticipated ad valorem collections. The difference in intergovernmental reflects an increasein 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-relatedtechnology costs. The unfavorable variance in investment income is due to the low interest rates thatprevailed in the market during the entire fiscal year.

Differences between the original budgeted expenditures and the final amended bidget were relativelyminor with an increase of $1,606,291 in appropriations, and can be briefly summarized as follows:

0v Increase in general government activities of $560,1200v Increase in public safety activities of $1,109,6180v Increase in transportation of $85,0000v Decrease in human services of $234,9670v Decrease in culture and recreation of $16,5200v Increase in debt service of $70,000

14

15

The favorable difference between the final amended budget for total expenditures and the actual total expenditures is chiefly due to the reserves of $9,156,631 that are budgeted as part of the general government category. Although revenues fell short of budgetary estimates, expenditures were less than budgetary estimates as well, 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 $474,232,727 and $454,838,364 for fiscal years 2004 and 2003, 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 4.3% (a 3.8% increase for governmental activities and an 8.6% increase 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 infrastructure

and sidewalks in new planned developments and subdivisions. Donated infrastructure in fiscal year 2004 amounted to $5,568,730 as compared to $1,666,741 last fiscal year.

v Construction continued on many of the County’s capital projects including road reconstruction, dirt road paving, and various drainage projects amounting to a $13 million increase in infrastructure capital assets.

v The Public Safety Department purchased two new pumper trucks and two brush trucks at a cost of $1.1 million.

v Continued construction of the Sheriff’s Administration Building and a re-roofing project at the Central Booking and Detention Center amounted to $4.2 million.

v The Road Department purchased significant pieces of new heavy equipment such as road sweepers, tractors, and dump trucks at a cost of over $2.5 million.

v Continued construction on the new Public Safety Building amounted to $6 million. v Construction of the new Southwest Branch of the Public Library was $1.2 million. v Construction began on a new Work Release Facility that amounted to $680,000 and renovations

were completed at the Juvenile Justice Center for $313,000. v The Master Courthouse Complex was started, which will be a two to three year project. The

amount spent in fiscal year 2004 was a little over $2 million. v The County’s Information Resources Department purchased two new servers at a cost of

$179,930 and the Emergency Management Department put in a new 911 Communication system at a cost of $263,100.

The favorable difference between the final amended budget for total expenditures and the actual totalexpenditures is chiefly due to the reserves of $9,156,631 that are budgeted as part of the generalgovernment category.

Although revenues fell short of budgetary estimates, expenditures were less than budgetary estimates aswell, 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 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 $474,232,727 and $454,838,364 for fiscal years 2004 and 2003,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 4.3% (a 3.8%increase for governmental activities and an 8.6% increase for business-type activities).

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

0:. Donated general government assets consist of developer funded road and drainage infrastructureand sidewalks in new planned developments and subdivisions. Donated infrastructure in fiscalyear 2004 amounted to $5,568,730 as compared to $1,666,741 last fiscal year.

0:. Construction continued on many of the County’s capital projects including road reconstruction,dirt road paving, and various drainage projects amounting to a $13 million increase ininfrastructure capital assets.

0:. The Public Safety Department purchased two new pumper trucks and two brush trucks at a costof $1.1 million.

0:. Continued construction of the Sheriff’s Administration Building and a re-roofing project at theCentral Booking and Detention Center amounted to $4.2 million.

0:. The Road Department purchased significant pieces of new heavy equipment such as roadsweepers, tractors, and dump trucks at a cost of over $2.5 million.

0:. Continued construction on the new Public Safety Building amounted to $6 million.0v Construction of the new Southwest Branch of the Public Library was $1.2 million.

0:. Construction began on a new Work Release Facility that amounted to $680,000 and renovationswere completed at the Juvenile Justice Center for $313,000.

0:. The Master Courthouse Complex was started, which will be a two to three year project. Theamount spent in fiscal year 2004 was a little over $2 million.

0:. The County’s Information Resources Department purchased two new servers at a cost of$179,930 and the Emergency Management Department put in a new 911 Communication systemat a cost of $263,100.

15

16

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 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 in the Notes of this report. Long-Term Debt. At the end of the fiscal year 2004, the County had total bonded debt of $132,640,000, or $441 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.

Governmental ActivitiesEscambia County, Florida

Capital Assets (net of depreciation)

Land

5%

Buildings and Improvements

21%

In f ras t ruc tu re

63%

Equipment

6%

Construct ion in Progress

5%

Business-type Activites Escambia County, Florida

Capital Assets(net of accumulated depreciation)

Land

15%

Buildings and Improvements

34%

Infrastructure

39%

Equipment

12%

Governmental ActivitiesEscambia County, Florida

Capital Assets(net of depreciation)

Constructionin Progress Land5% 5%Equrpmem

6%Bulldmgsandlmprovements

21%

infrastructure63%

Business-type ActivitesEscambia County, Florida

Capital Assets(net of accumulated depreciation)

Equipment Land12% 15%

"

Buildingsand Improvements34%

Infrastructure39%

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 additionsto 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 in the Notes of this report.

Long-Term Debt. At the end of the fiscal year 2004, the County had total bonded debt of $132,640,000,or $441 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.

16

17

The County’s outstanding notes, leases, and bonded debt decreased by $5,093,904 during fiscal year 2004. While additional notes and leases were entered into of about $5.9 million, retirements on debt was 46% greater than the new debt added.

Escambia County, Florida Long-Term Debt


Activities Activities Total

2004 2003 2004 2003 2004 2003 Revenue Bonds:

Sales tax revenue bonds $89,730,000 $89,730,000 $0 $0 $89,730,000 $89,730,000 Road improvement bonds 5,160,000 6,055,000 0 0 5,160,000 6,055,000 Tourist development bonds 15,860,000 16,700,000 0 0 15,860,000 16,700,000 Capital improvement bonds 21,890,000 22,305,000 0 0 21,890,000 22,305,000

Total revenue bonds 132,640,000 134,790,000 0 0 132,640,000 134,790,000 Notes and loans: Capital improvement notes 37,383,000 41,747,000 0 0 37,383,000 41,747,000 State of Florida Toll Fac. Note 385,834 469,167 0 0 385,834 469,167 Line of Credit 0 0 789,575 1,184,362 789,575 1,184,362

Capital Leases 8,286,825 6,388,609 0 0 8,286,825 6,388,609

Total notes/loans/leases 46,055,659 48,604,776 789,575 1,184,362 46,845,234 49,789,138

Total Long-Term Debt $178,695,659 $183,394,776 $789,575 $1,184,362 $179,485,234 $184,579,138

Escambia County currently holds a bond rating from Standard & Poor’s of AAA 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 of this report.

Economic Factors and Year 2005 Budgets and Rates As mentioned several places throughout this MD&A, Hurricane Ivan struck Escambia County on September 16, 2004. 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. The US Army Corps of Engineers installed nearly 30,000 blue tarpaulins on Escambia County homes. Debris cleanup costs are estimated to be about $200 million. The County will be reimbursed 90% of the cost by the Federal Emergency Management Agency and 5% by the State of Florida, leaving the County responsible for 5% of the cleanup costs. In addition, the County is still assessing the damage to the infrastructure and working to estimate the costs associated with rebuilding. 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.

The County’s outstanding notes, leases, and bonded debt decreased by $5,093,904 during fiscal year2004. While additional notes and leases were entered into of about $5.9 million, retirements on debt was46% greater than the new debt added.

Escambia County, FloridaLong-Term Debt


Activities Activities Total

2004 2003 2004 2003 2004 2003Revenue Bonds:

Sales tax revenue bonds $89,730,000 $89,730,000 $0 $0 $89,730,000 $89,730,000Road improvement bonds 5,160,000 6,055,000 5,160,000 6,055,000Tourist development bonds 15,860,000 16,700,000 15,860,000 16,700,000Capital improvement bonds 21,890,000 22,305,000 21,890,000 22,305,000

Total revenue bonds 132,640,000 134,790,000 132,640,000 134,790,00000

00

00

00

Notes and loans:Capital improvement notes 37,383,000 41,747,000 0 0 37,383,000 41,747,000State of Florida Toll Fac. Note 385,834 469,167 0 0 385,834 469,167Line of Credit 0 0 789,575 1,184,362 789,575 1,184,362Capital Leases 8,286,825 6,388,609 0 0 8,286,825 6,388,609

Total notes/loans/leases 46,055,659 48,604,776 789,575 1,184,362 46,845,234 49,789,138Total Long-Term Debt $178,695,659 $183,394,776 $789,575 $1,184,362 $179,485,234 $184,579,138

Escambia County currently holds a bond rating from Standard & Poor’s of AAA 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 of this report.

Economic Factors and Year 2005 Budgets and Rates

As mentioned several places throughout this MD&A, Hurricane Ivan struck Escambia County onSeptember 16, 2004. 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 theCounty along the multitude of bays and rivers. A large portion of both Pensacola Beach and Perdido Keywas destroyed, thereby injuring the local tourism trade for the near future. The majority of homes in theCounty received damage of some kind, while some homes were totally destroyed. The US Army Corps ofEngineers installed nearly 30,000 blue tarpaulins on Escambia County homes. Debris cleanup costs areestimated to be about $200 million. The County will be reimbursed 90% of the cost by the FederalEmergency Management Agency and 5% by the State of Florida, leaving the County responsible for 5%of the cleanup costs. In addition, the County is still assessing the damage to the infrastructure andworking to estimate the costs associated with rebuilding. The community is continuing its rebuildingefforts and this rebuilding effort will help the area’s economy through increased sales tax due to increasedpurchases of building supplies and increased building permits revenue.

17

18

Factors considered in preparing Escambia County’s budget for the 2005 fiscal year included: v New challenges face the County following the effect of Hurricane Ivan on September 16, 2004.

Reductions are now projected in major revenue streams such as ad valorem taxes, Fire and Santa Rosa Island MSBU assessments, tourist development taxes and Bob Sikes Toll revenue.

v Less significant revenue impacts are expected in the Electric Franchise Fee and

Telecommunications Tax. v The County will rely on reserves to overcome potential shortfalls in the pledged revenues for

bond payments. v Residential building permit activity decreased 1.6% during fiscal year 2004 but will increase

dramatically in fiscal year 2005 due to the active rebuilding of the community following Hurricane Ivan.

v 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 $19,067,230. An amount of $442,988 has been appropriated for spending in the 2005 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 2005. Escambia County continues to review various service fees and charges to meet the ongoing needs of infrastructure and services for County residents. 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.clerk.co.escambia.fl.us.

Factors considered in preparing Escambia County’s budget for the 2005 fiscal year included:

0:. New challenges face the County following the effect of Hurricane Ivan on September 16, 2004.Reductions are now projected in major revenue streams such as ad valorem taxes, Fire andSanta Rosa Island MSBU assessments, tourist development taxes and Bob Sikes Toll revenue.

0v Less significant revenue impacts are expected in the Electric Franchise Fee andTelecommunications Tax.

0:. The County will rely on reserves to overcome potential shortfalls in the pledged revenues forbond payments.

0v Residential building permit activity decreased 1.6% during fiscal year 2004 but will increasedramatically in fiscal year 2005 due to the active rebuilding of the community following HurricaneIvan.

0:. 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 $19,067,230. Anamount of $442,988 has been appropriated for spending in the 2005 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 2005.

Escambia County continues to review various service fees and charges to meet the ongoing needs ofinfrastructure and services for County residents.

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.clerk.co.escambia.fl.us.

18


STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2004Primary Government Component Units

Governmental Business-type TotalActivities Activities Primary Government Total

ASSETSCash and cash equivalents $16,246,024 $179,762 $16,425,786 $3,419,302Equity in pooled cash and investments 132,845,286 10,392,893 143,238,179 0Investments 200,000 0 200,000 2,232,680Receivables (net of allowance for uncollectibles) 6,532,015 4,405,664 10,937,679 1,262,921Internal balances 2,136,700 (2,136,700) 0 0Due from other governmental units 18,740,754 848,997 19,589,751 85,480Inventory 1,047,282 196,341 1,243,623 0Other current assets 84 45,228 45,312 44,860Restricted assets 72,544 3,498,280 3,570,824 24,215,023Bank participation agreements 0 0 0 99,000Unamortized bond issuance costs 1,964,892 0 1,964,892 0Other assets 0 0 0 2,776,206Capital assets: Land and construction in progress non-depreciable 42,104,465 7,132,625 49,237,090 0 Depreciable (net) 383,991,065 41,004,572 424,995,637 9,004,290 Total assets 605,881,111 65,567,662 671,448,773 43,139,762

LIABILTIESVouchers payable 18,651,304 918,518 19,569,822 366,336Contracts payable 1,660,439 726,360 2,386,799 0Salaries and benefits payable 9,012,051 311,339 9,323,390 133,454Due to other governmental units 2,005,326 14,642 2,019,968 349,280Other current liabilities 1,677,183 1,247,338 2,924,521 590,777Payable from restricted assets 72,544 381,245 453,789 0Non-current liabilities: Due within one year: Notes and bonds payable 11,874,333 394,788 12,269,121 0 Capital leases 1,542,022 0 1,542,022 2,933 Interest payable 326,376 0 326,376 0 Compensated absences 4,287,336 25,730 4,313,066 0 Due in more than one year: Compensated absences 17,878,780 1,240,379 19,119,159 341,478 Notes and bonds payable 158,534,501 394,787 158,929,288 0 Deferred revenues 0 0 0 189,167 Capital leases 6,744,803 0 6,744,803 5,204 Unamortized bond premium 1,026,828 0 1,026,828 0 Landfill closure and postclosure care payable 0 9,221,432 9,221,432 0 Claims liabilities 17,944,504 0 17,944,504 0 Total liabilities 253,238,330 14,876,558 268,114,888 1,978,629

NET ASSETSInvested in capital assets (net of related debt) 279,785,705 44,689,714 324,475,419 8,996,111Restricted 39,815,173 0 39,815,173 23,703,614Unrestricted 33,041,903 6,001,390 39,043,293 8,461,408 Total net assets $352,642,781 $50,691,104 $403,333,885 $41,161,133

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

19


STATEMENT OF NET ASSETS

AS OF SEPTEMBER 30, 2004

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 payableDeferred revenuesCapital leasesUnamortized bond premiumLandfill closure and postclosure care payableClaims liabilitiesTotal liabilities

NET ASSETSInvested in capital assets (net of related debt)RestrictedUnrestricted

Total net assets

The accompanying notes are an integral part of thefinancial statements.

Primary Government Component UnitsGovernmental

ActivitiesBusiness-type

ActivitiesTotal

Primary Government Total

$16,246,024132,845,286

200,0006,532,0152,136,700

18,740,7541,047,282

8472,544

01,964,892

0

42,104,465383,991,065

$179,76210,392,893

04,405,664

(2,136,700)848,997196,34145,228

3,498,280000

7,132,62541,004,572

$16,425,786143,238,179

200,00010,937,679

019,589,751

1,243,62345,312

3,570,8240

1,964,8920

49,237,090424,995,637

$3,419,3020

2,232,6801,262,921

085,480

044,860

24,215,02399,000

02,776,206

09,004,290

605,881,111 65,567,662 671,448,773 43,139,762

18,651,3041,660,4399,012,0512,005,3261,677,183

72,544

11,874,3331,542,022

326,3764,287,336

17,878,780158,534,501

06,744,8031,026,828

017,944,504

918,518726,360311,339

14,6421,247,338

381,245

394,78800

25,730

1,240,379394,787

0O0

9,221,4320

19,569,8222,386,7999,323,3902,019,9682,924,521

453,789

12,269,1211,542,022

326,3764,313,066

19,119,159158,929,288

06,744,8031,026,8289,221,432

17,944,504

366,3360

133,454349,280590,777

0

02,933

O0

341,4780

189,1675,204

OOO

253,238,330 14,876,558 268,114,888 1,978,629

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

44,689,7140

6,001,390

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

8,996,11123,703,6148,461,408

$352,642,781 $50,691,104 $403,333,885 $41,161,133


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2004

Program RevenuesOperating Capital

Charges for Grants and Grants andExpenses Services Contributions Contributions

Function/Program ActivitiesGovernmental activities: General government $18,991,464 $25,156,465 $132,330 $616,055 Public safety 129,147,683 16,465,229 12,248,776 36,357 Physical environment 1,081,449 350,199 445,764 372,828 Transportation 48,510,758 1,343,142 4,357,005 1,135,324 Economic environment 12,049,668 91,368 3,398,388 6,468,101 Human services 4,706,530 0 952,220 0 Culture and recreation 4,179,058 212,882 110,561 678,539 Court related 11,849,716 4,612,277 626,228 0 Interest on long term debt 7,517,482 0 0 0 Total governmental activities 238,033,808 48,231,562 22,271,272 9,307,204

Business-type activities: Solid waste 8,411,321 9,232,897 0 0 Civic center 5,244,904 3,385,077 0 0 Industrial park 780,684 0 0 2,980,413 Other 15,066,666 15,519,477 408 0 Total business-type activities 29,503,575 28,137,451 408 2,980,413 Total primary government $267,537,383 $76,369,013 $22,271,680 $12,287,617

Component units: Civil Service Board $866,490 $1,022,388 $0 $0 Law Library Board 119,139 154,067 0 0 Santa Rosa Island Authority 7,697,763 5,432,620 0 138,326 Housing Finance Authority 1,474,239 877,353 0 0 Total component units $10,157,631 $7,486,428 $0 $138,326

General Revenues: Property taxes Tourist development taxes State shared revenue Sales taxes Gas taxes Unrestricted interest Rents and royalties Sale of assets Miscellaneous revenuesCapital contributionsTransfers - internal activities Total general revenues, special items, and transfers Change in net assetsNet assets - beginning (restated)Net assets - ending

The accompanying notes are an integral part of the financial statements

20


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED SEPTEMBER 30, 2004

Function/Program ActivitiesGovernmental activities:

General governmentPublic safetyPhysical environmentTransportationEconomic environmentHuman servicesCulture and recreationCourt relatedInterest on long term debtTotal governmental activities

Business-type activities:Solid wasteCivic centerIndustrial parkOther

Total business-type activitiesTotal primary government

Component units:Civil Service BoardLaw Library BoardSanta Rosa Island AuthorityHousing Finance Authority

Total component units

The accompanying notes are an integral part of thefinancial statements

Expenses

$18,991,464129,147,683

1,081,44948,510,75812,049,6684,706,5304,179,058

11,849,7167,517,482

Program Revenues

Charges forServices

$25,156,46516,465,229

350,1991,343,142

91,3680

212,8824,612,277

0

OperatingGrants and

Contributions

$132,33012,248,776

445,7644,357,0053,398,388

952,220110,561626,228

0

CapitalGrants and

Contributions

$616,05536,357

372,8281,135,3246,468,101

0678,539

00

238,033,808

8,41 1 ,3215,244,904

780,68415,066,66629,503,575

$267,537,383

$866,490119,139

7,697,7631,474,239

$10,157,631

20

48,231,562

9,232,8973,385,077

015,519,47728,137,451

$76,369,013

$1 ,022,388154,067

5,432,620877,353

$7,486,428

General Revenues:

22,271,272

0OO

408408

$22,271,680

Property taxesTourist development taxesState shared revenueSales taxesGas taxesUnrestricted interestRents and royaltiesSale of assetsMiscellaneous revenues

Capital contributionsTransfers - internal activities

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

Net assets - beginning (restated)Net assets - ending

9,307,204

00

2,980,4130

2,980,413$12,287,617

$00

138,3260

$138,326

Net (Expense) Revenue andChanges in Net Assets

Primary GovernmentGovernmental Business-type Component

Activities Activities Total Units

$6,913,386 $0 $6,913,386 $0(100,397,321) 0 (100,397,321) 0

87,342 0 87,342 0(41,675,287) 0 (41,675,287) 0(2,091,811) 0 (2,091,811) 0(3,754,310) 0 (3,754,310) 0(3,177,076) 0 (3,177,076) 0(6,611,211) 0 (6,611,211) 0(7,517,482) 0 (7,517,482) 0

(158,223,770) 0 (158,223,770) 0

0 821,576 821,576 00 (1,859,827) (1,859,827) 00 2,199,729 2,199,729 00 453,219 453,219 00 1,614,697 1,614,697 0

(158,223,770) 1,614,697 (156,609,073) 0

0 0 0 155,8980 0 0 34,9280 0 0 (2,126,817)0 0 0 (596,886)0 0 0 ($2,532,877)

85,558,122 0 85,558,122 04,767,723 0 4,767,723 07,860,391 0 7,860,391 0

49,974,648 0 49,974,648 013,510,022 0 13,510,022 02,653,483 180,207 2,833,690 109,296

425,826 0 425,826 0184,324 150,734 335,058 0

5,782,863 157,669 5,940,532 4,4975,682,788 957,291 6,640,079 01,310,394 (1,310,394) 0 0

177,710,584 135,507 177,846,091 113,79319,486,814 1,750,204 21,237,018 (2,419,084)

333,155,967 48,940,900 382,096,867 43,580,217$352,642,781 $50,691,104 $403,333,885 $41,161,133

21

Net (Expense) Revenue andChanges in Net Assets

Primaw GovernmentGovernmental

ActivitiesBusiness-type

Activities TotalComponent

Units

$6,913,386(100,397,321)

87,342(41,675,287)

(2,091,811)(3,754,310)(3,177,076)(6,611,211)(7,517,482)

en $6,913,386(100,397,321)

87,342(41,675,287)

(2,091,811)(3,754,310)(3,177,076)(6,611,211)(7,517,482)

99

(158,223,770) OO

OO

OO

OO

OO

(158,223,770) 00

00

00

00

00

821,576(1,859,827)2,199,729

453,219

821,576(1,859,827)2,199,729

453,2191,614,697 1,614,697

OO

OO

OO

(158,223,77 ) 1,614,697 (156,609,073) 00

00

00

155,89834,928

(2,126,817)(596,886)

00

00

0

00

00

0

00

00

0

($2,532,877)

85,558,1224,767,7237,860,391

49,974,64813,510,0222,653,483

425,826184,324

5,782,8635,682,7881,310,394

OO

OO

O

180,2070

150,734157,669957,291

(1 ,310,394)

85,558,1224,767,7237,860,391

49,974,64813,510,0222,833,690

425,826335,058

5,940,5326,640,079

0

00

00

0

109,29600

4,497OO

177,710,584 135,507 177,846,091 113,79319,486,814

333,155,9671 ,750,204

48,940,90021,237,018

382,096,867(2,419,084)

43,580,217$352,642,781 $50,691,104 $403,333,885 $41,161,133

21


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2004 Transportation Capital Other Total

Disaster and Debt Improvement Governmental GovernmentalGeneral Recovery Drainage Service Program LOST Funds Funds

ASSETSCash and cash equivalents $3,920,107 $0 $14,089 $0 $3,069,368 $0 $9,214,451 $16,218,015Equity in pooled cash and investments 21,953,099 10,539,787 2,175,221 8,518,034 24,944,156 35,592,093 20,002,108 123,724,498Investments 0 0 0 0 0 0 200,000 200,000Receivables (net of allowance for uncollectibles) 1,572,433 3,517,032 11,667 0 0 0 398,552 5,499,684Due from other funds 3,085,836 0 0 0 0 0 158,710 3,244,546Due from other governmental units 2,639,248 7,571,607 1,116,226 0 312,166 3,421,251 3,663,922 18,724,420Inventory 536,926 0 291,943 0 0 0 218,413 1,047,282Other current assets 84 0 0 0 0 0 0 84Advance to other funds 203,142 0 0 0 0 10,110,681 0 10,313,823 Total assets $33,910,875 $21,628,426 $3,609,146 $8,518,034 $28,325,690 $49,124,025 $33,856,156 $178,972,352

LIABILITIESVouchers payable $3,483,990 $7,774,390 $396,111 $0 $2,014,584 $1,296,370 $3,229,533 $18,194,978Contracts payable 0 15,028 995 0 845,410 586,659 212,347 1,660,439Salaries and compensated absences payable 6,979,841 1,172,071 467,326 0 1,802 19,671 1,872,394 10,513,105Due to other funds 1,349,111 0 0 0 0 10,063 1,711,971 3,071,145Due to other governmental units 945,406 206 5,028 0 1,325 0 971,383 1,923,348Other current liabilities 902,241 0 14,962 0 0 20,000 717,112 1,654,315Long-term liabilities: 0 Advance from other funds 0 10,000,000 0 0 110,681 1,170,959 0 11,281,640 Total liabilities 13,660,589 18,961,695 884,422 0 2,973,802 3,103,722 8,714,740 48,298,970

FUND BALANCESReserved for encumbrances 442,988 153,000 333,100 0 7,876,475 7,475,743 3,654,728 19,936,034Reserved for advances to other funds 203,142 0 0 0 0 10,110,681 0 10,313,823Reserved for debt service 0 0 0 8,518,034 0 0 0 8,518,034Reserved for inventory 536,926 0 291,943 0 0 0 218,413 1,047,282Unreserved, reported in: General fund 19,067,230 0 0 0 0 0 0 19,067,230 Special revenue funds 0 2,513,731 2,099,681 0 0 0 19,349,507 23,962,919 Capital projects 0 0 0 17,475,413 28,433,879 1,918,768 47,828,060 Total fund balances 20,250,286 2,666,731 2,724,724 8,518,034 25,351,888 46,020,303 25,141,416 130,673,382

Total liabilities and fund balances $33,910,875 $21,628,426 $3,609,146 $8,518,034 $28,325,690 $49,124,025 $33,856,156 $178,972,352


22


BALANCE SHEETGOVERNMENTAL FUNDSSEPTEMBER 30, 2004

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 and compensated absences 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 sen/iceReserved for inventoryUnreserved, reported in:General fundSpecial revenue fundsCapital projects

Total fund balances

Total liabilities and fund balances


General

$3,920,10721,953,099

01,572,4333,085,8362,639,248

536,92684

203,142

DisasterRecovery

$010,539,787

03,517,032

07,571,607

000

Transportationand

Drainage

$14,0892,175,221

011,667

01,116,226

291,94300

DebtService

$08,518,034

CapitalImprovement

Program

$3,069,36824,944,156

000

312,166000

LOST

$035,592,093

000

3,421,25100

10,110,681

OtherGovernmental

Funds

$9,214,45120,002,108

200,000398,552158,710

3,663,922218,413

00

TotalGovernmental

Funds

$16,218,015123,724,498

200,0005,499,6843,244,546

18,724,4201,047,282

8410,313,823

$33,910,875

$3,483,9900

6,979,8411,349,111

945,406902,241

0

$21,628,426

$7,774,39015,028

1,172,0710

2060

10,000,000

$3,609,146

$396,1 1 1995

467,3260

5,02814,962

0

00000004$8,518,03

00

00

00

0

$28,325,690

$2,014,584845,410

1,8020

1,32500

110,681

$49,124,025

$1,296,370586,659

19,67110,063

020,000

1,170,959

$33,856,156

$3,229,533212,347

1,872,3941,711,971

971,383717,112

0

$178,972,352

$18,194,9781,660,439

10,513,1053,071,1451,923,3481,654,315

11,281,64013,660,589 18,961,695 884,422 2,973,802 3,103,722 8,714,740 48,298,970

442,988203,142

0536,926

19,067,23000

153,000000

02,513,731

333,10000

291,943

02,099,681

0

00

8,518,0340

7,876,475000

00

17,475,413

7,475,74310,110,681

00

00

28,433,879

3,654,72800

218,413

019,349,507

1,918,768

19,936,03410,313,8238,518,0341,047,282

19,067,23023,962,91947,828,060

20,250,286 2,666,731 2,724,724

000

8,518,034 25,351,888 46,020,303 25,141,416 130,673,382

$33,910,875 $21,628,426 $3,609,146

22

$8,518,034 $28,325,690 $49,124,025 $33,856,156 $178,972,352


RECONCILIATION OF THE BALANCE SHEETTO THE STATEMENT OF NET ASSETSGOVERNMENTAL FUNDS


Fund balances - total governmental funds $130,673,382

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 $719,165,531 and the accumulated 426,079,127 depreciation is $293,086,404

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 ($170,408,834) Compensated absences (20,610,298) Leases (8,286,825) Unamortized bond issuance costs 1,964,892 Unamortized original issue bond premium (1,026,828) ($198,367,893)

Interest payable in governmental funds is susceptable to full accrual on the entity-wide statements. (326,376)

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. (5,415,459)

Net assets of governmental activities $352,642,781


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 $719,165,531 and the accumulateddepreciation is $293,086,404

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


$130,673,382

426,079,127

($170,408,834)(20,810,298)

(8,288,825)1,984,892

(1,028,828) ($198,367,893)

(328,378)

(5,415,459)

$352,642,781

23


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

FOR THE YEAR ENDED SEPTEMBER 30, 2004 Transportation Capital Other TotalDisaster and Debt Improvement Governmental Governmental

General Recovery Drainage Service Program LOST Funds Funds

Revenues: Taxes $97,342,618 $0 $6,952,619 $0 $0 $30,496,142 $6,403,526 $141,194,905 Licenses and permits 471,916 0 0 0 0 0 0 471,916 Intergovernmental 27,588,546 7,571,607 4,873,428 600,000 0 1,137,595 21,639,312 63,410,488 Charges for services 8,043,133 0 286,305 0 0 6,856 9,874,910 18,211,204 Fines and forfeitures 1,434,309 0 0 0 0 0 670,805 2,105,114 Investment income 419,547 0 35,359 113,725 761,121 542,106 429,885 2,301,743 Special assessments 907,524 0 570,380 0 0 0 10,209,635 11,687,539 Miscellaneous 4,933,965 3,517,032 272,000 0 1,678 653,788 1,034,795 10,413,258 Total revenues 141,141,558 11,088,639 12,990,091 713,725 762,799 32,836,487 50,262,868 249,796,167

Expenditures: Current: General government 48,933,362 0 0 0 0 0 9,650,963 58,584,325 Public safety 71,138,119 9,120,045 4,221,879 0 0 0 18,144,266 102,624,309 Physical environment 508,058 0 270,144 0 0 0 232,055 1,010,257 Transportation 253,000 0 15,285,444 0 0 0 8,468,961 24,007,405 Economic environment 331,917 0 0 0 0 0 10,924,514 11,256,431 Human services 3,034,304 0 0 0 0 0 1,114,542 4,148,846 Culture and recreation 2,112,089 0 0 0 0 0 236,470 2,348,559 Capital improvements 0 0 0 17,296,815 14,344,902 0 31,641,717 Debt service Principal retirement 150,573 0 792,118 9,712,562 0 0 0 10,655,253 Interest and fiscal charges 19,323 1,863 101,050 7,240,981 21,112 100,954 53,753 7,539,036 Total expenditures 126,480,745 9,121,908 20,670,635 16,953,543 17,317,927 14,445,856 48,825,524 253,816,138

Excess (deficiency) of revenue over (under) expenditures 14,660,813 1,966,731 (7,680,544) (16,239,818) (16,555,128) 18,390,631 1,437,344 (4,019,971)

Other financing sources (uses): Capital lease(s) issued 56,136 0 0 0 2,900,000 0 0 2,956,136 Note proceeds 0 0 0 0 0 0 3,000,000 3,000,000 Clerk of the court trust fund revenue 0 0 0 0 0 0 313,200 313,200 Transfers in 2,707,724 700,000 5,498,506 16,571,259 288,565 0 6,681,662 32,447,716 Transfers out (15,098,209) 0 (834,589) 0 (81,844) (8,665,715) (5,756,965) (30,437,322) Total other financing sources (uses) (12,334,349) 700,000 4,663,917 16,571,259 3,106,721 (8,665,715) 4,237,897 8,279,730

Net change in fund balances 2,326,464 2,666,731 (3,016,627) 331,441 (13,448,407) 9,724,916 5,675,241 4,259,759

Fund balances at beginning of year 17,923,822 0 5,741,351 8,186,593 38,800,295 36,295,387 19,466,175 126,413,623Fund balances (deficit) at end of year $20,250,286 $2,666,731 $2,724,724 $8,518,034 $25,351,888 $46,020,303 $25,141,416 $130,673,382


24


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

FOR THE YEAR ENDED SEPTEMBER 30, 2004

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):Capital Iease(s) issuedNote proceedsClerk of the court trust fund revenueTransfers 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

$97,342,618471,916

27,588,5468,043,1331,434,309

419,547907,524

4,933,965141,141,558

DisasterRecovery

$00

7,571,6070000

3,517,03211,088,639

Transportationand

Drainage

$6,952,6190

4,873,428286,305

035,359

570,380272,000

12,990,091

DebtService

$00

600,000

CapitalImprovement

Program LOST

$30,496,1420

1,137,5956,856

0542,106

0653,788

32,836,487

OtherGovernmental

Funds

$6,403,5260

21,639,3129,874,910

670,805429,885

10,209,6351,034,795

50,262,868

TotalGovernmental

Funds

$141,194,905471,916

63,410,48818,211,2042,105,1142,301,743

11,687,53910,413,258

249,796,167

48,933,36271,138,119

508,058253,000331,917

3,034,3042,112,089

0

150,57319,323

09,120,045

O0

00

0

01,863

04,221,879

270,14415,285,444

0000

792,118101,050

OO

OO

OO

OO

9,712,5627,240,981

0000000517,296,81

021,112

0000000

14,344,902

0100,954

9,650,96318,144,266

232,0558,468,961

10,924,5141,114,542

236,4700

053,753

58,584,325102,624,309

1,010,25724,007,40511,256,4314,148,8462,348,559

31,641,717

10,655,2537,539,036

126,480,745

14,660,813

9,121,908

1,966,731

20,670,635

(7,880,544)

16,953,543

(16,239,818)

17,317,927

(18,555,128)

14,445,856

18,390,631

48,825,524

1,437,344

253,816,138

(4,019,971)

58,13800

2,707,724(15,098,209)(12,334,349)

00

0

700,0000

700,000

000

5,498,508(834,589)

4,883,9170

00

16,571,2590

16,571,259

2,900,00000

288,585(81,844)

3,108,721

00

0

0(8,885,715)(8,885,715)

03,000,000

313,2008,881,882

(5,758,985)4,237,897

2,958,1383,000,000

313,20032,447,718

(30,437,322)8,279,730

2,326,464 2,666,731 (3,018,827) 331,441 (13,448,407) 9,724,916 5,675,241 4,259,759

17,923,822 0 5,741,351 8,186,593 38,800,295 36,295,387 19,466,175 126,413,623$20,250,286 $2,666,731 $2,724,724

24

$8,518,034 $25,351,888 $46,020,303 $25,141,416 $130,673,382


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 $4,259,759

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 $40,660,619 Less current year depreciation (30,122,031) 10,538,588

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 10,655,253

Governmental funds report new issues of debt as revenue. However, in the statement of activities, the issuance of debt is recorded as a long term liability as follows: Bonds/notes payable (5,900,000) Leases payable (56,136) (5,956,136)

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 2,231 Salary expense associated with compensated absences (1,969,928)

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 (3,037,842)

Loss on disposal of capital assets do not reduce financial resources of governmental funds. (651,132)

Donations of capital items increase financial resources of governmental funds. 5,682,788 Change in net assets of governmental activities $19,486,814


25

ESCAM BIA COUNTY, FLORIDA

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

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 $40,660,619Less current year depreciation (30,122,031)

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

Governmental funds report new issues of debt as revenue. However, in the statement of activities, the issuance ofdebt is recorded as a long term liability as follows:

Bonds/notes payable (5,900,000)Leases payable (56,136)

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

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 expenseSalary expense associated with compensated absences

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

Loss on disposal of capital assets do not reduce financial resources of governmental funds.

Donations of capital items increase financial resources of governmental funds.

Change in net assets of governmental activities


25

$4,259,759

10,538,588

10,655,253

(5,956,136)

(36,767)

2,231(1,969,928)

(3,037,842)

(651,132)

5,682,788

$19,486,814


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

FOR THE YEAR ENDED SEPTEMBER 30, 2004 Variance withFinal Budget

Original Final PositiveBudget Budget Actual (Negative)

Revenues: Taxes $100,278,682 $100,278,682 $97,342,618 ($2,936,064) Licenses and permits 450,805 450,805 471,916 21,111 Intergovernmental 26,877,640 26,933,153 27,588,546 655,393 Charges for services 9,396,436 7,266,236 8,043,133 776,897 Fines and forfeitures 1,384,822 1,384,822 1,434,309 49,487 Investment income 635,977 635,977 419,547 (216,430) Special assessments 732,292 732,292 907,524 175,232 Miscellaneous 4,517,492 4,593,596 4,933,965 340,369 Total revenues 144,274,146 142,275,563 141,141,558 (1,134,005)

Expenditures: Current: General government 60,802,935 61,363,055 48,933,362 12,429,693 Public safety 70,493,990 71,603,608 71,138,119 465,489 Physical environment 548,276 548,276 508,058 40,218 Transportation 290,844 375,844 253,000 122,844 Economic environment 374,582 374,582 331,917 42,665 Human services 3,753,463 3,518,496 3,034,304 484,192 Culture and recreation 2,240,005 2,256,525 2,112,089 144,436 Debt service Principal retirement 80,573 150,573 150,573 0 Interest and fiscal charges 27,013 27,013 19,323 7,690 Total expenditures 138,611,681 140,217,972 126,480,745 13,737,227

Excess (deficiency) of revenue over (under) expenditures 5,662,465 2,057,591 14,660,813 12,603,222

Other financing sources (uses): Lease proceeds 0 0 56,136 56,136 Transfers in 1,595,306 2,695,431 2,707,724 12,293 Transfers out (13,959,771) (14,894,802) (15,098,209) (203,407) Total other financing sources (uses) (12,364,465) (12,199,371) (12,334,349) (134,978)

Net change in fund balances (6,702,000) (10,141,780) 2,326,464 12,468,244

Fund balances at beginning of year 6,702,000 10,141,780 17,923,822 7,782,042Fund balances (deficit) at end of year $0 $0 $20,250,286 $20,250,286


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



Debt servicePrincipal retirementInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Lease proceedsTransfers inTransfers out





OriginalBudget

FinalBudget Actual

Variance withFinal Budget

Positive(Negative)

$100,278,682450,805

26,877,6409,396,4361,384,822

635,977732,292

4,517,492

$100,278,682450,805

26,933,1537,266,2361,384,822

635,977732,292

4,593,596

$97,342,618471,916

27,588,5468,043,1331,434,309

419,547907,524

4,933,965

($2,936,064)21,1 1 1

655,393776,89749,487

(216,430)175,232340,369

144,274,146 142,275,563 141,141,558 (1,134,005)

60,802,93570,493,990

548,276290,844374,582

3,753,4632,240,005

80,57327,013

61,363,05571,603,608

548,276375,844374,582

3,518,4962,256,525

150,57327,013

48,933,36271,138,119

508,058253,000331,917

3,034,3042,112,089

150,57319,323

12,429,693465,489

40,218122,84442,665

484,192144,436

07,690

138,611,681 140,217,972 126,480,745 13,737,227

5,662,465

01,595,306

(13,959,771)

2,057,591

02,695,431

(14,894,802)

14,660,813

56,1362,707,724

(15,098,209)

12,603,222

56,13612,293

(203,407)(12,364,465) (12,199,371) (12,334,349) (134,978)

(6,702,000) (10,141,780) 2,326,464 12,468,244

6,702,000 10,141,780 17,923,822 7,782,042$0 $0 $20,250,286

26

$20,250,286


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



Revenues: Intergovernmental $0 $0 $7,571,607 $7,571,607 Miscellaneous 0 0 3,517,032 3,517,032 Total revenues 0 0 11,088,639 11,088,639

Expenditures: Current: Public safety 0 10,700,000 9,120,045 1,579,955 Debt service Interest and fiscal charges 0 0 1,863 (1,863) Total expenditures 0 10,700,000 9,121,908 1,578,092

Excess (deficiency) of revenue over (under) expenditures 0 (10,700,000) 1,966,731 12,666,731

Other financing sources (uses): Note proceeds 0 10,000,000 0 (10,000,000) Transfers in 0 700,000 700,000 0 Total other financing sources (uses) 0 10,700,000 700,000 (10,000,000)

Net change in fund balances 0 0 2,666,731 2,666,731

Fund balances at beginning of year 0 0 0 0Fund balances (deficit) at end of year $0 $0 $2,666,731 $2,666,731


27


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


Revenues:IntergovernmentalMiscellaneous

Total revenues


Public safetyDebt service

Interest and fiscal chargesTotal expenditures


Other financing sources (uses):Note proceeds

Transfers inTotal other financing sources (uses)




OriginalBudget Actual


Positive(Negative)

$00

$7,571,6073,517,032

$7,571,6073,517,032

0 11,088,639 11,088,639

10,700,000

0

9,120,045

1,863

1,579,955

(1,863)10,700,000 9,121,908 1,578,092

(10,700,000) 1,966,731 12,666,731

10,000,000700,000

0700,000

(10,000,000)0

10,700,000 700,000 (10,000,000)

0 2,666,731 2,666,731

0 0 0$0

27

$2,666,731 $2,666,731


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



Revenues: Taxes $6,861,291 $6,861,291 $6,952,619 $91,328 Intergovernmental 4,792,322 4,826,400 4,873,428 47,028 Charges for services 317,500 330,376 286,305 (44,071) Investment income 55,610 55,610 35,359 (20,251) Special assessments 472,483 522,203 570,380 48,177 Miscellaneous 2,228,671 974,827 272,000 (702,827) Total revenues 14,727,877 13,570,707 12,990,091 (580,616)

Expenditures: Current: Public safety 4,195,319 4,199,297 4,221,879 (22,582) Physical environment 277,461 442,052 270,144 171,908 Transportation 20,235,552 17,682,511 15,285,444 2,397,067 Debt service Principal retirement 0 792,119 792,118 1 Interest and fiscal charges 0 101,050 101,050 0 Total expenditures 24,708,332 23,217,029 20,670,635 2,546,394

Excess (deficiency) of revenue over (under) expenditures (9,980,455) (9,646,322) (7,680,544) 1,965,778

Other financing sources (uses): Transfers in 5,787,176 5,787,176 5,498,506 (288,670) Transfers out (834,589) (834,589) (834,589) 0 Total other financing sources (uses) 4,952,587 4,952,587 4,663,917 (288,670)

Net change in fund balances (5,027,868) (4,693,735) (3,016,627) 1,677,108

Fund balances at beginning of year 5,027,868 4,693,735 5,741,351 1,047,616Fund balances (deficit) at end of year $0 $0 $2,724,724 $2,724,724


28


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


OriginalBudget

Revenues:Taxes $6,861,291Intergovernmental 4,792,322Charges for services 317,500Investment income 55,610Special assessments 472,483Miscellaneous 2,228,671

Total revenues 14,727,877


Public safety 4,195,319Physical environment 277,461Transportation 20,235,552

Debt servicePrincipal retirement 0Interest and fiscal charges 0Total expenditures 24,708,332

Excess (deficiency) of revenue over (under)expenditures (9,980,455)

Other financing sources (uses):Transfers in 5,787,176Transfers out (834,589)

Total other financing sources (uses) 4,952,587

Net change in fund balances (5,027,868)

Fund balances at beginning of year 5,027,868Fund balances (deficit) at end of year $0


FinalBudget

$6,861,2914,826,400

330,37655,610

522,203974,827

13,570,707

4,199,297442,052

17,682,511

792,119101 ,050

23,217,029

(9,646,322)

5,787,176(834,589)

4,952,587

(4,693,735)

4,693,735$0

28

Actual

$6,952,6194,873,428

286,30535,359

570,380272,000

12,990,091

4,221,879270,144

15,285,444

792,118101,050

20,670,635

(7,680,544)

5,498,506(834,589)

4,663,917

(3,016,627)

5,741,351$2,724,724


Positive(Negative)

$91,32847,028(44,071)(20,251)48,177

(702,827)(580,616)

(22,582)171,908

2,397,067

10

2,546,394

1,965,778

(288,670)0

(288,670)

1,677,108

1,047,616$2,724,724


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

SEPTEMBER 30, 2004Business-type Activities

EconomicDevelopment Governmental

and ActivitiesASSETS Solid Waste Civic Center Industrial Other Non-major Total Internal Service FundCurrent assets: Cash and cash equivalents $1,525 $177,587 $0 $650 $179,762 $28,009 Equity in pooled cash and investments 4,365,249 1,017,337 367,232 4,643,075 10,392,893 9,120,788 Receivables (net of allowance for uncollectibles) 1,121,524 537,290 0 2,746,850 4,405,664 838,988 Due from other funds 0 0 0 0 0 19,973 Due from other governmental units 0 0 848,997 0 848,997 16,334 Inventory 0 59,648 0 136,693 196,341 0 Restricted cash and cash equivalents 228,812 0 0 152,433 381,245 72,544 Other current assets 9,680 35,548 0 0 45,228 0 Total current assets 5,726,790 1,827,410 1,216,229 7,679,701 16,450,130 10,096,636

Noncurrent assets: Restricted assets Cash and cash equivalents 3,117,035 0 0 0 3,117,035 0 Capital assets: Land and other non-depreciable assets 3,362,172 0 3,764,010 6,443 7,132,625 0 Capital assets (net of depreciation) 18,850,631 14,696,530 4,796,778 2,660,633 41,004,572 16,403 Advance to other funds 521,231 0 0 0 521,231 3,104,494 Total noncurrent assets 25,851,069 14,696,530 8,560,788 2,667,076 51,775,463 3,120,897 Total assets 31,577,859 16,523,940 9,777,017 10,346,777 68,225,593 13,217,533

LIABILITIESCurrent liabilities: Vouchers payable 518,549 310,224 17,735 72,010 918,518 456,326 Contracts payable 294,079 42,953 389,328 0 726,360 0 Salaries, benefits and compensated absences payable 92,596 0 0 244,473 337,069 12,500 Due to other funds 23 0 0 0 23 8 Due to other governmental units 8,789 0 412 5,441 14,642 81,978 Current portion of notes, loans, and bonds payable 394,788 0 0 0 394,788 0 Liabilities payable from restricted assets 228,812 0 0 152,433 381,245 72,544 Other current liabilities 2,022 867,761 349,848 27,707 1,247,338 22,868 Total current liabilities 1,539,658 1,220,938 757,323 502,064 4,019,983 646,224

Non-current liabilities: Compensated absences 402,987 0 0 837,392 1,240,379 42,264 Advance from other funds 0 203,142 2,454,766 0 2,657,908 0 Notes, bonds, and loans payable 394,787 0 0 0 394,787 0 Landfill closure and postclosure care payable 9,221,432 0 0 0 9,221,432 0 Claims liabilities 0 0 0 0 0 17,944,504 Total non-current liabilities 10,019,206 203,142 2,454,766 837,392 13,514,506 17,986,768 Total liabilities 11,558,864 1,424,080 3,212,089 1,339,456 17,534,489 18,632,992

NET ASSETSInvested in capital assets, net of related debt 21,423,228 14,493,388 6,106,022 2,667,076 44,689,714 16,403Unrestricted (1,404,233) 606,472 458,906 6,340,245 6,001,390 (5,431,862) Total net assets $20,018,995 $15,099,860 $6,564,928 $9,007,321 $50,691,104 ($5,415,459)


29


STATEMENT OF NET ASSETSPROPRIETARY FUNDS

SEPTEMBER 30, 2004

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 assetsCash and cash equivalents

Capital 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

$1,5254,365,2491,121,524

000

228,8129,680

EconomicDevelopment

andCivic Center Industrial

$177,5871,017,337

537,29000

59,6480

35,548

$0367,232

00

848,997000

Other Non-ma'or

$6504,643,0752,746,850

00

136,693152,433

0

Total

$179,76210,392,8934,405,664

0848,997196,341381 ,24545,228

GovernmentalActivities

Internal Service Fund

$28,0099,120,788

838,98819,97316,334

072,544

05,726,790 1,827,410 1,216,229 7,679,701 16,450,130 10,096,636

3,117,035

3,362,17218,850,631

521,231

014,696,530

0

3,764,0104,796,778

0

6,4432,660,633

0

3,117,035

7,132,62541,004,572

521,231

016,403

3,104,49425,851,069 14,696,530 8,560,788 2,667,076 51,775,463 3,120,89731,577,859 16,523,940 9,777,017 10,346,777 68,225,593 13,217,533

518,549294,079

92,59623

8,789394,788228,812

2,022

310,22442,953

00

00

0

867,761

17,735389,328

349,848

72,0100

244,4730

5,4410

152,43327,707

918,518726,360337,069

2314,642

394,788381,245

1,247,338

456,3260

12,5008

81,9780

72,54422,868

1,539,658 1,220,938 757,323 502,064 4,019,983 646,224

402,9870

394,7879,221,432

0

0203,142

000

02,454,766

000

837,3920000

1,240,3792,657,908

394,7879,221,432

0

42,264000

17,944,50410,019,206 203,142 2,454,766 837,392 13,514,506 17,986,76811,558,864 1,424,080 3,212,089 1,339,456 17,534,489 18,632,992

21,423,228(1,404,233)

14,493,388606,472

6,106,022458,906

2,667,0766,340,245

44,689,7146,001,390

16,403(5,431,862)

$20,018,995 $15,099,860

29

$6,564,928 $9,007,321 $50,691,104 ($5,415,459)


STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET ASSETSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2004 Business-type Activities

EconomicDevelopment Governmental

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

Operating revenues: Licenses and permits $1,607,480 $0 $0 $3,570,275 $5,177,755 $0 Intergovernmental 0 0 2,980,413 0 2,980,413 0 Charges for services 7,624,742 3,385,077 0 11,828,186 22,838,005 8,296,748 Fines and forfeitures 675 0 0 14,640 15,315 0 Miscellaneous income 14,883 4,775 4,800 239,587 264,045 146,978 Total operating revenues 9,247,780 3,389,852 2,985,213 15,652,688 31,275,533 8,443,726

Operating expenses: Personal services 2,894,265 0 0 8,150,241 11,044,506 394,495 Contractual services 980,016 3,850,205 67,612 341,142 5,238,975 3,488,255 Claims expense 0 0 0 0 0 5,015,392 Materials and supplies 404,347 0 0 478,586 882,933 96,830 Travel and vehicle costs 42,671 0 0 113,695 156,366 4,524 Depreciation 1,916,421 1,165,614 536,520 713,532 4,332,087 10,767 Bad debts 30 2,502 0 3,977,324 3,979,856 0 Memberships, dues and subscriptions 35,842 0 199 21,704 57,745 7,051 Insurance and bonds 282,485 66,514 0 102,449 451,448 1,597,029 Communications and freight services 39,354 0 0 90,767 130,121 5,125 Utilities 149,399 0 4,876 21,214 175,489 0 Maintenance 251,203 124,315 0 338,576 714,094 8,801 Rentals and leases 68,348 0 0 161,216 229,564 620 Provision for closure and long-term care 710,955 0 0 0 710,955 0 Advertising and promotion 159,842 0 0 1,501 161,343 0 Aids to private organizations 0 0 46,000 0 46,000 0 Miscellaneous 467,292 32,382 0 554,719 1,054,393 516,244 Total operating expenses 8,402,470 5,241,532 655,207 15,066,666 29,365,875 11,145,133Operating income (loss) 845,310 (1,851,680) 2,330,006 586,022 1,909,658 (2,701,407)

Non-operating revenues (expenses): Interest income 111,190 24,215 2,200 42,602 180,207 363,893 Interest expense (8,851) (3,372) (125,477) 0 (137,700) 0 Gain (loss) on disposal of assets 131,492 (9,255) 103,770 (75,273) 150,734 (328) Other income 0 0 0 408 408 0 Total non-operating revenues (expenses) 233,831 11,588 (19,507) (32,263) 193,649 363,565

Income (loss) before contributions and transfers 1,079,141 (1,840,092) 2,310,499 553,759 2,103,307 (2,337,842)

Capital contributions 0 0 63,278 894,013 957,291 4,058 Transfers in 0 775,936 0 0 775,936 0 Transfers (out) (1,931,330) 0 0 (155,000) (2,086,330) (700,000) Total contributions and transfers (1,931,330) 775,936 63,278 739,013 (353,103) (695,942)

Change in net assets (852,189) (1,064,156) 2,373,777 1,292,772 1,750,204 (3,033,784)

Net assets at beginning of year 20,871,184 16,164,016 4,191,151 7,714,549 48,940,900 (2,381,675)Net assets at ending of year $20,018,995 $15,099,860 $6,564,928 $9,007,321 $50,691,104 ($5,415,459)


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 servicesClaims expenseMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesProvision for closure and long-term careAdvertising and promotionAids to private organizationsMiscellaneous

Total operating expensesOperating income (loss)

Non-operating revenues (expenses):Interest incomeInterest expenseGain (loss) on disposal of assetsOther 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 yearNet assets at ending of year


Solid Waste

$1,607,4800

7,624,742675

14,883

Civic Center

$00

3,385,0770

4,775

EconomicDevelopment

andIndustrial

$02,980,413

00

4,800

Other Non-ma'or

$3,570,2750

11,828,18614,640

239,587

Total

$5,177,7552,980,413

22,838,00515,315

264,045


Internal Service Func

$00

8,296,7480

146,9789,247,780 3,389,852 2,985,213 15,652,688 31,275,533 8,443,726

2,894,265980,016

0404,347

42,6711,916,421

3035,842

282,48539,354

149,399251,203

68,348710,955159,842

0467,292

03,850,205

000

1,165,6142,502

066,514

00

124,3150000

32,382

536,5200

199

46,0000

8,150,241341,142

0478,586113,695713,532

3,977,32421,704

102,44990,76721,214

338,576161,216

01,501

0554,719

11,044,5065,238,975

0882,933156,366

4,332,0873,979,856

57,745451,448130,121175,489714,094229,564710,955161,34346,000

1,054,393

394,4953,488,2555,015,392

96,8304,524

10,7670

7,0511,597,029

5,1250

8,801620

000

516,2448,402,470 5,241,532 655,207 15,066,666 29,365,875 11,145,133

845,310 (1,851,680) 2,330,006 586,022 1,909,658 (2,701,407)

111,190(8,851)

131,4920

24,215(3,372)(9,255)

0

2,200(125,477)103,770

0

42,6020

(75,273)408

180,207(137,700)150,734

408

363,8930

(328)0

233,831 11,588 (19,507) (32,263) 193,649 363,565

1,079,141 (1,840,092) 2,310,499 553,759 2,103,307 (2,337,842)

00

(1,931,330)

0775,936

0

63,27800

894,0130

(155,000)

957,291775,936

(2,086,330)

4,0580

(700,000)(1,931,330) 775,936 63,278 739,013 (353,103) (695,942)

(852,189) (1,064,156) 2,373,777 1,292,772 1,750,204 (3,033,784)

20,871,184 16,164,016 4,191,151 7,714,549 48,940,900 (2,381,675)$20,018,995


$15,099,860

30

$6,564,928 $9,007,321 $50,691,104 ($5,415,459)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

FOR THE YEAR ENDED SEPTEMBER 30, 2004 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 $9,056,763 $3,082,985 $2,455,391 $15,303,806 $29,898,945 $7,613,258 Cash payments to suppliers for goods and services (3,243,411) (3,950,208) (366,744) (6,173,940) (13,734,303) (9,471,645) Cash payments to employees for services (2,821,410) 0 0 (8,056,239) (10,877,649) (383,422) Other non-operating revenues (expenses) 0 0 0 222,828 222,828 0 Net cash provided by (used in) operating activities 2,991,942 (867,223) 2,088,647 1,296,455 5,509,821 (2,241,809)

Cash flows from noncapital financing activities: Transfers in 0 775,936 0 0 775,936 0 Transfers out (1,931,330) 0 0 (155,000) (2,086,330) (700,000) Principal (paid)/received on interfund advance 104,969 (56,247) (104,969) 0 (56,247) 511,614 Interest (paid)/received on interfund advance 7,244 (3,372) (125,477) 0 (121,605) 216,966 Net cash provided by (used in) noncapital financing activities (1,819,117) 716,317 (230,446) (155,000) (1,488,246) 28,580

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (3,005,576) (1,360,136) (3,049,408) (190,346) (7,605,466) 0 Principal paid on revenue bonds, notes and lease purchase contracts (394,787) 0 0 0 (394,787) 0 Interest paid on revenue bonds, notes and lease purchase contracts (8,851) 0 0 0 (8,851) 0 Proceeds from sale of assets 190,602 0 258,770 0 449,372 0 Net cash used in capital and related financing activities (3,218,612) (1,360,136) (2,790,638) (190,346) (7,559,732) 0

Cash flow from investing activities: Interest on investments 103,946 24,215 2,200 42,602 172,963 146,927 Net cash provided by investing activities 103,946 24,215 2,200 42,602 172,963 146,927

Net increase (decrease) in cash & cash equivalents (1,941,841) (1,486,827) (930,237) 993,711 (3,365,194) (2,066,302)

Cash and cash equivalents at beginning of year 9,654,462 2,681,751 1,297,469 3,802,447 17,436,129 11,287,643Cash and cash equivalents at end of year $7,712,621 $1,194,924 367,232$ $4,796,158 $14,070,935 $9,221,341

Non-cash investing, capital and financing activities Capital contributions $0 $0 $63,278 $894,013 $957,291 $4,058The 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 advance

Net 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 assets

Net cash used in capital and related financing activities

Cash flow from investing activities:Interest on investments

Net cash provided by investing activities

Net increase (decrease) in cash 8. 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


Solid Waste

$9,056,763(3,243,411)(2,821,410)

02,991,942

0(1,931,330)

104,9697,244

(1,819,117)

(3,005,576)(394,787)

(8,851)190,602

(3,218,612)

103,946103,946

(1,941,841)

9,654,462$7,712,621

$0

Business-type ActivitiesEconomic

Development Governmentaland Activities

Civic Center Industrial Other Non-ma'or M Internal Service Fund

$3,082,985 $2,455,391 $15,303,806 $29,898,945 $7,613,258(3,950,208) (366,744) (6,173,940) (13,734,303) (9,471,645)

0 0 (8,056,239) (10,877,649) (383,422)0 0 222,828 222,828 0

(867,223) 2,088,647 1,296,455 5,509,821 (2,241,809)

775,936 0 0 775,936 00 0 (155,000) (2,086,330) (700,000)

(56,247) (104,969) 0 (56,247) 511,614(3,372) (125,477) 0 (121,605) 216,966

716,317 (230,446) (155,000) (1,488,246) 28,580

(1,360,136) (3,049,408) (190,346) (7,605,466)0 0 0 (394,787)0 0 0 (8,851)0 258,770 0 449,372

(1,360,136) (2,790,638) (190,346) (7,559,732) 00

00

0

24,215 2,200 42,602 172,963 146,92724,215 2,200 42,602 172,963 146,927

(1,486,827) (930,237) 993,711 (3,365,194) (2,066,302)

2,681,751 1,297,469 3,802,447 17,436,129 11,287,643$1,194,924 $ 367,232 $4,796,158 $14,070,935 $9,221,341

$0 $63,278 $894,013 $957,291 $4,058(Continued)

31


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS Business-type Activities(CONTINUED) EconomicFOR THE YEAR ENDED SEPTEMBER 30, 2004 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 $1,525 $177,587 $0 $650 $179,762 $28,009 Equity in pooled cash and investments 4,365,249 1,017,337 367,232 4,643,075 10,392,893 9,120,788 Restricted assets: Cash and cash equivalents 3,345,847 0 0 152,433 3,498,280 72,544 Total cash and cash equivalents at end of year $7,712,621 $1,194,924 367,232$ $4,796,158 $14,070,935 $9,221,341

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $845,310 ($1,851,680) $2,330,006 $586,022 $1,909,658 ($2,701,407) Other non-operating revenues 0 0 0 408 408 0 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 1,916,421 1,165,614 536,520 713,532 4,332,087 10,767 Provision for uncollectible accounts 30 2,502 0 3,977,324 3,979,856 0 (Increase) decrease in assets: Accounts receivable (297,988) (509,605) 0 (4,151,567) (4,959,160) (138,941) Due from other governments 0 0 263,679 0 263,679 (4,357) Inventory 0 (14,959) 0 4,965 (9,994) 0 Prepaid expense 0 (9,338) 0 210 (9,128) 0 Increase (decrease) in liabilities: Vouchers payable (178,036) 152,268 (244,709) 25,898 (244,579) 186,243 Salaries and benefits payable 27,242 0 0 48,725 75,967 3,562 Compensated absences 45,613 0 0 45,277 90,890 0 Accrued taxes payable 0 (2,261) 0 0 (2,261) 7,511 Deposits 106,941 0 0 47,571 154,512 7,157 Due to other governments 1,144 0 (3,348) (1,910) (4,114) 81,697 Deferred revenue 0 200,236 (793,501) 0 (593,265) (687,170) Landfill closure and long-term care payable 525,265 0 0 0 525,265 0 Claims payable 0 0 0 0 0 993,129

Net cash provided by (used in) operating activities $2,991,942 ($867,223) 2,088,647$ $1,296,455 $5,509,821 ($2,241,809)


32


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS(CONTINUED)FOR THE YEAR ENDED SEPTEMBER 30, 2004

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 receivableDue 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

Net cash provided by (used in) Operating activities


Solid Waste

$1,5254,365,249

3,345,847$7,712,621

$845,3100

1,916,42130

(297,988)000

(178,036)27,24245,613

0106,941

1,1440

525,2650

$2,991,942

Civic Center

$177,5871,017,337

0$1,194,924

($1,851,680)0

1,165,6142,502

(509,605)0

(14,959)(9,338)

152,26800

(2,261)

($867,223)

32

Business-type ActivitiesEconomic

Developmentand

Industrial

$0367,232

0$ 367,232

$2,330,006

(244,709)0000

(3,348)(793,501)

00

$ 2,088,647

Other Non-ma'Or

$6504,643,075

152,433$4,796,158

$586,022408

713,5323,977,324

(4,151,567)0

4,965210

25,89848,72545,277

047,571(1,910)

000

$1,296,455

Total

$179,76210,392,893

3,498,280$14,070,935

$1 ,909,658408

4,332,0873,979,856

(4,959,160)263,679

(9,994)(9,128)

(244,579)75,96790,890(2,261)

154,512(4,114)

(593,265)525,265

0

$5,509,821


Internal Service Fund

$28,0099,120,788

72,544$9,221,341

($2,701,407)0

10,7670

(138,941)(4,357)

00

186,2433,562

07,5117,157

81,697(687,170)

0993,129

($2,241,809)


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2004

TotalAssets Agency Funds

Cash and cash equivalents $8,030,759Receivables (net of allowance for uncollectibles) 82,773Due from other funds 1,329,138Due from other governments 262 Total assets $9,442,932

Liabilities

Payable to others $678,977Due to other funds 1,522,481Due to other governmental units 4,001,208Other current liabilities 3,240,266 Total liabilities $9,442,932


33


STATEMENT OF FIDUCIARY NET ASSETSFUDICIARY FUNDS

SEPTEMBER 30, 2004

TotalAssets Agency Funds

Cash and cash equivalents $8,030,759Receivables (net of allowance for uncollectibles) 82,773Due from other funds 1,329,138Due from other governments 262

Total assets $9,442,932

Liabilities

Payable to others $678,977Due to other funds 1,522,481Due to other governmental units 4,001,208Other current liabilities 3,240,266

Total liabilities $9,442,932


33


STATEMENT OF NET ASSETSCOMPONENT UNITS

SEPTEMBER 30, 2004

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 $336,987 $51,567 $1,698,865 $1,331,883 $3,419,302 Investments 0 77,195 0 2,155,485 2,232,680 Receivables (net of allowance for uncollectibles) 12,064 1,157 1,153,663 96,037 1,262,921 Due from other governmental units 200 0 85,280 0 85,480 Other current assets 0 0 41,025 3,835 44,860 Total current assets 349,251 129,919 2,978,833 3,587,240 7,045,243

Noncurrent assets: Restricted assets Cash and cash equivalents 0 0 311,865 0 311,865 Investments 0 0 23,903,158 0 23,903,158 Capital assets (net of depreciation) 0 1,084,965 7,445,514 473,811 9,004,290 Supplemented mortgage loans 0 0 0 2,194,338 2,194,338 Bank participation agreements 0 0 0 99,000 99,000 Other noncurrent assets 0 0 562,381 19,487 581,868 Total noncurrent assets 0 1,084,965 32,222,918 2,786,636 36,094,519 Total assets 349,251 1,214,884 35,201,751 6,373,876 43,139,762

LIABILITIESCurrent liabilities: Vouchers payable 4,480 5,088 285,291 71,477 366,336 Salaries, benefits and compensated absences payable 19,978 3,563 109,913 0 133,454 Due to other governmental units 0 0 349,280 0 349,280 Notes, loans, leases and bonds payable 0 0 2,933 0 2,933 Other current liabilities 0 0 590,777 0 590,777 Total current liabilities 24,458 8,651 1,338,194 71,477 1,442,780

Non-current liabilities: Compensated absences 123,758 0 217,720 0 341,478 Leases payable 0 0 5,204 0 5,204 Deferred revenues 0 0 189,167 0 189,167 Total non-current liabilities 123,758 0 412,091 0 535,849 Total liabilities 148,216 8,651 1,750,285 71,477 1,978,629

NET ASSETSInvested in capital assets, net of related debt 0 1,084,965 7,437,335 473,811 8,996,111Restricted net assets 0 0 23,057,183 646,431 23,703,614Unrestricted net assets 201,035 121,268 2,956,948 5,182,157 8,461,408 Total net assets $201,035 $1,206,233 $33,451,466 $6,302,399 $41,161,133


34


STATEMENT OF NET ASSETSCOMPONENT UNITS

SEPTEMBER 30, 2004


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


Noncurrent assets:Restricted assets

Cash 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

Total non-current liabilitiesTotal liabilities

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

$336,9870

12,064200

0

$51,56777,195

1,15700

$1,698,8650

1,153,66385,28041,025

$1,331,8832,155,485

96,0370

3,835

$3,419,3022,232,6801,262,921

85,48044,860

349,251 129,919 2,978,833 3,587,240 7,045,243

00

1,084,965000

311,86523,903,158

7,445,51400

562,381

00

473,8112,194,338

99,00019,487

311,86523,903,158

9,004,2902,194,338

99,000581,868

OO

OO

OO

O

1,084,965 32,222,918 2,786,636 36,094,519349,251 1,214,884 35,201,751 6,373,876 43,139,762

4,48019,978

5,0883,563

285,291109,913349,280

2,933590,777

366,336133,454349,280

2,933590,777

24,458 8,651 1,338,194 1,442,780

123,75800

217,7205,204

189,167

341,4785,204

189,167123,758 0

00

0

412,091 00

00

535,849148,216 8,651 1,750,285 71,477 1,978,629

00

201,035

1,084,9650

121,268

7,437,33523,057,1832,956,948

473,811646,431

5,182,157

8,996,11123,703,614

8,461,408$201,035 $1,206,233

34

$33,451,466 $6,302,399 $41,161,133


STATEMENT OF ACTIVITIESCOMPONENT UNITS

FOR THE YEAR ENDED SEPTEMBER 30, 2004 Program Revenues

Operating CapitalCharges for Grants and Grants and

Expenses Services Contributions ContributionsFunction/Program ActivitiesGovernmental Activities: Civil Service Board $866,490 $1,022,388 $0 $0 Escambia County Law Library 119,139 154,067 0 0 Total Governmental activities 985,629 1,176,455 0 0

Business-type activities: Santa Rosa Island Authority 7,697,763 5,432,620 0 138,326 Housing Finance Authority 1,474,239 877,353 0 0 Total business-type activities 9,172,002 6,309,973 0 138,326 Total component units $10,157,631 $7,486,428 $0 $138,326

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


35


STATEMENT OF ACTIVITIESCOMPONENT UNITS


Function/Program ActivitiesExpenses

Program Revenues

OperatingCharges for Grants and

Services Contributions

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

$866,490119,139

$1,022,388 $0154,067 0

$00

985,629

7,697,7631,474,239

1,176,455 0

5,432,620 0877,353 0

0

138,3260

9,172,002 6,309,973 0 138,326$10,157,631 $7,486,428 $0 $138,326


35

General RevenuesInvestment earningsMiscellaneous

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

$155,898 $0 $0 $0 $155,8980 34,928 0 0 34,928

155,898 34,928 0 0 190,826

0 0 (2,126,817) 0 (2,126,817)0 0 0 (596,886) (596,886)0 0 (2,126,817) (596,886) (2,723,703)

155,898 34,928 (2,126,817) (596,886) (2,532,877)

5,035 794 17,260 86,207 109,2964,497 0 0 0 4,4979,532 794 17,260 86,207 113,793

165,430 35,722 (2,109,557) (510,679) (2,419,084)35,605 1,170,511 35,561,023 6,813,078 43,580,217

$201,035 $1,206,233 $33,451,466 $6,302,399 $41,161,133

36

Net (Expense) Revenue and Changes in Net Assets

Governmental Activities Business-type ActivitiesCivil Service

BoardLaw

LibrarySanta Rosa

Island AuthorityHousing Finance

Authority Totals

$155,8980

$034,928

$00

$0 $155,89834,928

155,898

00

34,928 0

(2,126,817)0

0(596,886)

190,826

(2,126,817)(596,886)

0 (2,126,817) (596,886) (2,723,703)155,898 34,928 (2,126,817) (596,886) (2,532,877)

5,0354,497

7940

17,2600

86,2070

109,2964,497

9,532 794 17,260 86,207 113,793165,43035,605

35,7221,170,511

(2,109,557)35,561,023

(510,679)6,813,078

(2,419,084)43,580,217

$201,035 $1,206,233 $33,451,466 $6,302,399

36

$41,161,133

NOTES TO FINANCIAL STATEMENTS NOTES TO FINANCIAL STATEMENTS


NOTES TO COMBINED FINANCIAL STATEMENTS SEPTEMBER 30, 2004

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.


NOTES TO COMBINED FINANCIAL STATEMENTSSEPTEMBER 30, 2004

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 CRA jurisdiction.

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.

37


NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) SEPTEMBER 30, 2004

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 fees by the Clerk of the Circuit Court on civil cases filed in the courts in addition to other costs provided by law. 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 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, 2004

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 fees by the Clerk of the Circuit Court on civil casesfiled in the courts in addition to other costs provided by law. 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. Theoperations of the Law Library are reported in the Law Library Fund, a special revenue fund, as a discretecomponent unit. Financial statements for the Escambia County Law Library Board can be obtained at190 Governmental Center, 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 GASB Statement Number 14, a joint venture is a separate legal entity orother organization that results from a contractual arrangement (or interlocal agreement) and that isowned, operated or governed by two or more participants as a separate and specific activity subject tojoint control in which the participants retain (a) an on—going financial interest or (b) an on—going financialresponsibility. The County participates and provides financial support to the bllowing nonequity jointventures:

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 Governmental Center Authority (PEGCA) – This Authority was created in 1969 by Chapter 69-1049, Laws of Florida, as amended in 1971 by Chapter 71-631, for the purpose of acquiring, constructing, improving, operating, and maintaining facilities for occupancy by the City of Pensacola, the County, their agencies and departments and other governmental agencies and departments. The Authority terminated business and disbanded as of January 31, 2004. Separate and final financial statements are available at 635 W. Garden Street, Pensacola, FL 32502. 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 and maintenance 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, 2004 for the joint ventures are as follows: BALANCE SHEET SEPTEMBER 30, 2004 PEGCA HRC PEDC

Assets and other debits $0 $34,406 $244,827

Liabilities $0 $65,610 $0 Fund equity and other credits Reserved for restricted assets 0 0 61,198 Unreserved 0 (31,204) 183,629 Total fund equity 0 (31,204) 244,827

Total liabilities and fund equity $0 $34,406 $244,827



Pensacola — Escambia Governmental Center Authority (PEGCA) — This Authority wascreated in 1969 by Chapter 69-1049, Laws of Florida, as amended in 1971 by Chapter 71-631,for the purpose of acquiring, constructing, improving, operating, and maintaining facilities foroccupancy by the City of Pensacola, the County, their agencies and departments and othergovernmental agencies and departments. The Authority terminated business and disbanded asof January 31, 2004. Separate and final financial statements are available at 635 W. GardenStreet, Pensacola, FL 32502.

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 and maintenance of the Commission, but neither has control of the budget or financesof the Commission. The Commission has no outstanding debt. Separate financial statementsare available from the Pensacola — Escambia County Promotion and Development Commissionat 117 West Garden Street, Pensacola, Florida 32593-0550.

Summary financial statements as of September 30, 2004 for the joint ventures are as follows:

BALANCE SHEETSEPTEMBER 30, 2004

Assets and other debits

Liabilities

Fund equity and other creditsReserved for restricted assetsUnreserved

Total fund equity

Total liabilities and fund equity

PEGCA

$0

HRC

$34,406

$0 $65,610

0(31,204)

61,198183,629

(31,204) 244,827$0 $34,406

39

$244,827



40

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR FISCAL YEAR ENDED SEPTEMBER 30, 2004 PEGCA HRC PEDC

Revenues $19 $253,063 $351,163 Expenditures (34,712) (250,969) (398,535)Excess (deficiency) of revenues over expenditures (34,693) 2,094 (47,372)Fund balance beginning 34,693 (33,298) 292,199

Fund balance ending $0 ($31,204) $244,827

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.



STATEMENT OF REVENUES,EXPENDITURES AND CHANGESIN FUND BALANCE FORFISCAL YEAR ENDEDSEPTEMBER 30, 2004

PEGCA fl: PEDC

Revenues $19 $253,063 $351,163Expenditures (34,712) (250,969) (398,535)Excess (deficiency) of revenues over expenditures (34,693) 2,094 (47,372)Fund balance beginning 34,693 (33,298) 292,199

Fund balance ending $0 ($31,204) $244,827

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.

40



41

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 from the unincorporated area of the County and expended on transportation projects that benefit those citizens of the unincorporated areas of the County, including street lighting, and to account for monies to provide drainage within specific districts. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term debt of governmental funds. The Capital Improvement Program Fund accounts for resources designated for use on various capital improvements.

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 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.

Agency Funds which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations, serve as clearing accounts for assets held by the County in a custodial or agency capacity for others.

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



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 from the unincorporatedarea of the County and expended on transportation projects that benefit those citizens of theunincorporated areas of the County, including street lighting, and to account for monies to providedrainage within specific districts.

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

The Capital Improvement Program Fund accounts for resources designated for use on variouscapital improvements.

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 disposal (landfill) operations, primarily financed throughfranchise 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:

C.

The Internal Service Fund accounts for risk management activities provided to other Countydepartments.

Agency Funds which are custodial in nature (assets equal liabilities) and do not involvemeasurement of results of operations, serve as clearing accounts for assets held by the County ina custodial or agency capacity for others.

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 for

41



42

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, as well as 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. 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 Governmental Accounting Standards Board (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.



which 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, as well as expenditures related to compensatedabsences and claims and judgments, which are recorded only when payment is due. Capital assetacquisitions 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.

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 Governmental Accounting Standards Board (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.

42



43

D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents are considered to be 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 that are 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, discount and premium notes of certain instrumentalities, and monies placed with the State Board of Administration for participation in the State 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’s investment of surplus funds and restricted reserve funds is governed by Florida Statutes, which permits adoption of an investment policy in accordance with specific requirements of Florida Statute 218.415 (1) – (16). The County has adopted such policy and its authorized investments include 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 is also permitted to invest in the Local Government Surplus Trust Fund, an external investment pool administered by the Florida State Board of Administration (SBA) in accordance with appropriate state laws and regulations. Investments held in the SBA consist largely of treasury instruments, federal agency obligations, certificates of deposit, repurchase agreements, bankers’ acceptance, and commercial paper. The SBA meets the criteria to be a “2-a-7 like” pool as defined in GASB Statement No. 31 and therefore, 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 State Board of Administration. 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 2004, 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.



D. Assets, Liabilities and Net Assets or Equity

Cash or Cash Equivalents are considered to be cash on hand, demand deposits, and short-terminvestments with original maturities of three months or less from date of acquisition.

Equity in Pooled Cash and Investments represent assets that are pooled for investment purposes witheach individual fund and/or account maintained on a daily transaction basis. Such investments consist ofdemand deposits, certificates of deposit, discount and premium notes of certain instrumentalities, andmonies placed with the State Board of Administration for participation in the State 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 ratherthan fair value. The County’s investment of surplus funds and restricted reserve funds is governed byFlorida Statutes, which permits adoption of an investment policy in accordance with specific requirementsof Florida Statute 218.415 (1) — (16). The County has adopted such policy and its authorized investmentsinclude direct obligations of the US. Treasury, Federal Instrumentalities, time deposits and savingsaccounts in qualified public depositories, tax exempt obligations of the State of Florida, the FloridaCounties Investment Trust, Securities and Exchange qualified open-end money market mutual funds, andrepurchase agreements. The County is also permitted to invest in the Local Government Surplus TrustFund, an external investment pool administered by the Florida State Board of Administration (SBA) inaccordance with appropriate state laws and regulations. Investments held in the SBA consist largely oftreasury instruments, federal agency obligations, certificates of deposit, repurchase agreements, bankers’acceptance, and commercial paper. The SBA meets the criteria to be a “2-a-7 like” pool as defined inGASB Statement No. 31 and therefore, the reported investment balance is equal to the value of pooledshares. The Office of the Auditor General performs an operational audit of the activities and investmentsof the State Board of Administration.

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 2004, 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 Tol(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.

43



44

Inventory amounts are valued at cost (first-in, fi rst-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 comprised of certain assets of both governmental and business-type activities that are restricted by specific provisions of bond resolutions and agreements with various parties. Assets so designated are identified as restricted assets on the balance sheet since their use is limited. 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 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 Governmental Accounting Standards Board Statement No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs. 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



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 comprised of certain assets of both governmental and business-type activities thatare restricted by specific provisions of bond resolutions and agreements with various parties. Assets sodesignated are identified as restricted assets on the balance sheet since their use is limited.

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 arecapitalized 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) andGovernmental Accounting Standards Board Statement No. 18, Accounting for Municipal Solid WasteLandfill Closure and Postclosure Care Costs. MSWLF costs incurred for landfills accepting solid wasteafter final implementation of the 1988 Act and EPA regulations are recognized as an expense and a

44



45

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. 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 A. 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, except the General Trust Special Revenue Fund. 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.



liability in each year that the MSWLF accepts solid waste based upon the landfill capacity used duringthat 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.

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

A. Budgetary Information

Annual budgets are adopted on a basis consistent with generally accepted accounting principles asrequired by Florida Statute 129 for all governmental funds, except the General Trust Special RevenueFund. 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 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 15‘. The Budget includes proposed expenditures and the means of financing them.

45



46

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.

NOTE 3 – DETAIL NOTES ON ALL FUNDS A. Assets Cash, Investments and Equity in Pooled Cash and Investments Cash consists of monies placed on deposit with financial institutions in the form of demand deposit accounts, time deposit accounts and certificates of deposit. All of the “public deposits” are held in qualified public depositories pursuant to Florida Statutes, Chapter 280, “Florida Security for Public Deposit Act.” Under the Act, all qualified public depositories are required to pledge eligible collateral having a market value equal to or greater than the average daily or monthly balance of all public deposits, times the depository’s collateral pledging level. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof. Any losses to public depositors are covered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary, assessments against other qualified public depositories of the same type as the depository in default. Accordingly, these deposits are considered to be fully insured. The carrying amount of deposits for the County and its discretely presented component units at September 30, 2004, are as follows: Carrying Amount Bank Balance Escambia County $62,383,673 $67,778,714

Escambia County Civil Service Board 336,987 340,829 Santa Rosa Island Authority 2,010,730 2,064,282 Escambia County Housing Authority 3,461,088 3,480,838 Law Library Board 51,567 62,608



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.

NOTE 3 — DETAIL NOTES ON ALL FUNDS

A. Assets

Cash, Investments and Equity in Pooled Cash and Investments

Cash consists of monies placed on deposit with financial institutions in the form of demand depositaccounts, time deposit accounts and certificates of deposit. All of the “public deposits” are held inqualified public depositories pursuant to Florida Statutes, Chapter 280, “Florida Security for PublicDeposit Act.” Under the Act, all qualified public depositories are required to pledge eligible collateralhaving a market value equal to or greater than the average daily or monthly balance of all public deposits,times the depository’s collateral pledging level. When public deposits are made in accordance withChapter 280, no public depositor shall be liable for any loss thereof. Any losses to public depositors arecovered by applicable deposit insurance, sale of securities pledged as collateral and, if necessary,assessments against other qualified public depositories of the same type as the depository in default.Accordingly, these deposits are considered to be fully insured.

The carrying amount of deposits for the County and its discretely presented component units atSeptember 30, 2004, are as follows:

Carrying Amount Bank Balance

Escambia County $62,383,673 $67,778,714Escambia County Civil Service Board 336,987 340,829Santa Rosa Island Authority 2,010,730 2,064,282Escambia County Housing Authority 3,461,088 3,480,838Law Library Board 51,567 62,608

46



47

Investments as of September 30, 2004, are categorized in accordance with GASB Statement No. 3 to indicate the level of risk assumed by the County: Category (1) includes investments that are insured or registered or for which the securities are held by the County or its agent in the County’s name; Category (2) includes uninsured or unregistered investments for which the securities are held by the counter party’s trust department or agent in the County’s name; Category (3) includes uninsured and unregistered investments for which the securities are held by the counter party, or by its trust department or agent, but not in the County’s name. Category Carrying Fair (1) (2) (3) Amount Value

U.S. Agencies $13,955,452 $0 $0 $13,955,452 $13,958,100 U.S. Treasuries 4,991,775 0 0 4,991,775 4,993,500

$18,947,227 $0 $0

Investments not subject to categorization: Local Government Surplus Funds Trust Fund - Investment Pool - Collateral held by State Board of Administration 55,228,102 55,228,102 Investment in money market funds 34,906,546 34,906,546

Total Investments $109,081,875 $109,086,248

A reconciliation of cash and cash equivalents, equity in pooled cash and investments, and investments as shown in the Statement of Net Assets for the primary government is shown below: Pooled Cash and Investments Deposits with financial institutions $62,383,673 Investments 109,081,875

$171,465,548

Government-Wide Fiduciary Funds Statement of Statement of

Net Assets Net Assets Total Cash and cash equivalents $16,425,786 $8,030,759 $24,456,545 Equity in pooled cash 143,238,179 0 143,238,179 Investments 200,000 0 200,000 Other restricted cash 3,570,824 0 3,570,824

Total $163,434,789 $8,030,759 $171,465,548



Investments as of September 30, 2004, are categorized in accordance with GASB Statement No. 3 toindicate the level of risk assumed by the County: Category (1) includes investments that are insured orregistered or for which the securities are held by the County or its agent in the County’s name; Category(2) includes uninsured or unregistered investments for which the securities are held by the counter party’strust department or agent in the County’s name; Category (3) includes uninsured and unregisteredinvestments for which the securities are held by the counter party, or by its trust department or agent, butnot in the County’s name.

U.S. AgenciesU.S. Treasuries

Category

(1)$13,955,452

4,991,775

CarryingAmount

$0 $13,955,4520 4,991,775

Investments not subject to categorization:Local Government Surplus Funds Trust Fund -

Investment Pool - Collateral held by StateBoard of Administration

Investment in money market funds

Total Investments

$18,947,227

55,228,10234,906,546

FairValue

$13,958,1004,993,500

55,228,10234,906,546

$109,081,875 $109,086,248

A reconciliation of cash and cash equivalents, equity in pooled cash and investments, and investments asshown in the Statement of Net Assets for the primary government is shown below:

Deposits with financial institutionsInvestments

Government-WideStatement of

Net Assets

Fiduciary FundsStatement of

Net Assets

Pooled Cashand Investments

$62,383,673109,081,875

$171,465,548

Total

$16,425,786143,238,179

200,0003,570,824

Cash and cash equivalentsEquity in pooled cashInvestmentsOther restricted cash

$8,030,759000

$24,456,545143,238,179

200,0003,570,824

Total $163,434,789

47

$8,030,759 $171,465,548



48

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 $1,681,376 $0 $109,791 $1,791,167 ($25,391) $1,765,776 Disaster recovery 3,517,032 0 0 3,517,032 0 3,517,032 Transportation and drainage 11,667 0 0 11,667 0 11,667 Other nonmajor funds 342,215 82,256 263 424,734 (26,182) 398,552 Internal Service Fund 959,079 0 38,671 997,750 (158,762) 838,988

Total governmental activities $6,511,369 $82,256 $148,725 $6,742,350 ($210,335) $6,532,015

Business-type activities: Solid Waste $1,121,524 $0 $0 $1,121,524 $0 $1,121,524 Civic Center 554,474 0 0 554,474 (17,184) 537,290

Nonmajor and other funds 9,035,861 0 0 9,035,861 (6,289,011) 2,746,850

Total business-type activities $10,711,859 $0 $0 $10,711,859 ($6,306,195) $4,405,664

Component units:

Civil Service Board $12,064 $0 $0 $12,064 $0 $12,064 Law Library 1,157 0 0 1,157 0 1,157 Santa Rosa Island Authority 1,153,663 0 0 1,153,663 0 1,153,663 Housing Finance Authority 37,000 0 59,037 96,037 0 96,037

Total component units $1,203,884 $0 $59,037 $1,262,921 $0 $1,262,921

There were no unbilled receivables at September 30, 2004.



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 $1,681,376 $0 $109,791 $1,791,167 ($25,391) $1,765,776Disaster recovery 3,517,032 0 0 3,517,032 0 3,517,032Transportation and drainage 11,667 0 0 11,667 0 11,667Other nonmajor funds 342,215 82,256 263 424,734 (26,182) 398,552Internal Service Fu nd 959,079 0 38,671 997,750 (158,762) 838,988

Total governmental activities $6,511,369 $82,256 $148,725 $6,742,350 ($210,335) $6,532,015

Business-type activities:Solid Waste $1,121,524 $0 $0 $1,121,524 $0 $1,121,524Civic Center 554,474 0 0 554,474 (17,184) 537,290

Nonmajor and other funds 9,035,861 0 0 9,035,861 (6,289,011) 2,746,850

Total business-type activities $10,711,859 $0 $0 $10,711,859 ($6,306,195) $4,405,664

Component units:

Civil Service Board $12,064 $0 $0 $12,064 $0 $12,064Law Library 1,157 O 0 1,157 0 1,157Santa Rosa Island Authority 1,153,663 0 0 1,153,663 0 1,153,663Housing Finance Authority 37,000 0 59,037 96,037 0 96,037

Total component units $1,203,884 $0 $59,037 $1,262,921 $0 $1,262,921

There were no unbilled receivables at September 30, 2004.

48



49

Capital Assets activity for the year ended September 30, 2004 was as follows: Balance at Balance at 10/01/03 Increases Decreases 09/30/04 Primary Government: Governmental activities:

Capital assets not depreciated: Land $19,907,108 $1,905,194 $0 $21,812,302 Construction in progress 12,080,171 14,405,994 (6,194,002) 20,292,163 Total capital assets not depreciated 31,987,279 16,311,188 (6,194,002) 42,104,465 Capital assets depreciated: Infrastructure 436,161,044 20,894,876 (50,025) 457,005,895 Buildings and improvements 124,010,838 5,170,310 0 129,181,148

Equipment 84,862,362 10,156,977 (4,014,070) 91,005,269 Total capital assets depreciated 645,034,244 36,222,163 (4,064,095) 677,192,312 Less accumulated depreciation: Infrastructure 172,171,169 16,289,391 0 188,460,560 Building and improvements 35,600,030 3,955,152 0 39,555,182 Equipment 58,713,945 9,888,255 (3,416,695) 65,185,505

Total accumulated depreciation 266,485,144 30,132,798 (3,416,695) 293,201,247 Total capital assets depreciated, net 378,549,100 6,089,365 (647,400) 383,991,065 Governmental-type activities

capital assets, net $410,536,379 $22,400,553 ($6,841,402) $426,095,530

Business-type activities: Land $7,284,080 $0 ($151,455) $7,132,625 Capital assets depreciated: Buildings 30,218,886 1,280,159 0 31,499,045 Infrastructure 23,806,436 5,390,643 0 29,197,079 Equipment 13,171,480 1,781,336 (1,676,037) 13,276,779

Total capital assets depreciated 67,196,802 8,452,138 (1,676,037) 73,972,903 Less accumulated depreciation:

Buildings 13,945,787 1,119,216 0 15,065,003 Infrastructure 8,785,723 1,488,702 0 10,274,425 Equipment 7,447,387 1,724,169 (1,542,653) 7,628,903 Total accumulated depreciation 30,178,897 4,332,087 (1,542,653) 32,968,331 Total capital assets depreciated, net 37,017,905 4,120,051 (133,384) 41,004,572 Business-type activities

capital assets, net $44,301,985 $4,120,051 ($284,839) $48,137,197



Capital Assets activity for the year ended September 30, 2004 was as follows:

Primam Government:Governmental activities:

Capital assets not depreciated:LandConstruction in progress

Total capital assets not depreciated

Capital assets depreciated:InfrastructureBuildings and improvements

EquipmentTotal 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 /03 Increases Decreases

Balance at09/30/04

$19,907,10812,080,171

$1,905,19414,405,994

$0(6,194,002)

$21,812,30220,292,163

31,987,279 16,311,188 (6,194,002) 42,104,465

436,161,044124,010,83884,862,362

20,894,8765,170,310

10,156,977

(50,025)0

(4,014,070)

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

645,034,244

172,171,16935,600,03058,713,945

36,222,163

16,289,3913,955,1529,888,255

(4,064,095)

00

(3,416,695)

677,192,312

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

266,485,144 30,132,798 (3,416,695) 293,201,247378,549,100 6,089,365 (647,400) 383,991,065

$410,536,379

$7,284,080

$22,400,553

$0

($6,841,402)

($151,455)

$426,095,530

$7,132,625

30,218,88623,806,43613,171,480

1,280,1595,390,6431,781,336

00

(1,676,037)

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

67,196,802

13,945,7878,785,7237,447,387

8,452,138

1,119,2161,488,7021,724,169

(1,676,037)

00

(1,542,653)

73,972,903

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

30,178,897 4,332,087 (1,542,653) 32,968,33137,017,905 4,120,051 (133,384) 41,004,572

$44,301,985

49

$4,120,051 ($284,639) $48,137,197



50

Depreciation expense was charged to functions/programs of the primary government as follows: Depreciation Expense Governmental activities: Business-type activities: General government $3,703,599 Solid waste $1,916,421

Public safety 8,477,843 Inspections 58,739 Physical environment 55,920 Ambulance 654,793 Transportation, Civic center 1,165,614 including depreciation of general Economic dev. and ind. parks 536,520

infrastructure assets 15,491,622 Total depreciation expens e $4,332,087

Economic environment 623,071 Human services 494,965 Culture and recreation 1,285,778

Total depreciation expense $30,132,798

Depreciation on capital assets held by the government’s internal service funds are charged to the general government function. Discretely Presented Component Units for the year ended September 30, 2004, had the following activity: SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITY Buildings $854,796 Land $453,305 Improvements other than buildings 7,295,471 Improvements other than buildings 14,539 Equipment 1,035,640 Equipment 53,302

Construction in progress 1,274,628 Total at historical cost 521,146 Total at historical cost 10,460,535 Less accumulated depreciation:

Less accumulated depreciation (3,015,021) Improvements other than buildings (13,085) Equipment (34,250)Santa Rosa Island Authority Total accumulated depreciation (47,335)

capital assets, net $7,445,514

Housing Finance Authority

capital assets, net $473,811



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

Depreciation Expense

Governmental activities: Business-type activities:General government $3,703,599 Solid waste $1,916,421Public safety 8,477,843 Inspections 58,739Physical environment 55,920 Ambulance 654,793Transportation, Civic center 1,165,614

including depreciation of general Economic dev. and ind. parks 536,520

infrastructure assets 15,491,622 Total depreciation expens 6 $4,332,087

Economic environment 623,071Human services 494,965Culture and recreation 1,285,778

Total depreciation expense $30,132,798

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

Discretely Presented Component Units for the year ended September 30, 2004, had the followingactivity:

SANTA ROSA ISLAND AUTHORITY HOUSING FINANCE AUTHORITYBuildings $854,796 Land $453,305Improvements other than buildings 7,295,471 Improvements other than buildings 14,539Equipment 1,035,640 Equipment 53,302

Construction in progress 1,274,628 Total at historical cost 521,146Total at historical cost 10,460,535

Less accumulated depreciation:

Less accumulated depreciation (3,015,021) Improvements other than buildings (13,085)Equipment (34,250)

Santa Rosa Island Authority Total accumulated depreciation (47,335)

capital assets, net $7,445,514

Housing Finance Authority

capital assets, net $473,811

50



51

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, 2004. Balances of interfund receivables, payables, and advances are as follows: Interfund Interfund Advances Advances Receivables Payables To From General fund $3,085,836 $1,349,111 $203,142 $0 Disaster recovery 0 0 0 10,000,000 Capital improvements 0 0 0 110,681 Local option sales tax 0 10,063 10,110,681 1,170,959 Nonmajor governmental 158,710 1,711,971 0 0

3,244,546 3,071,145 10,313,823 11,281,640 Solid waste 0 23 521,231 0 Civic center 0 0 0 203,142 Economic development and industrial fund 0 0 0 2,454,766 Internal service 19,973 8 3,104,494 0 Fiduciary - agency 1,329,138 1,522,481 0 0

Total major and nonmajor $4,593,657 $4,593,657 $13,939,548 $13,939,548

Interfund Transfers: Transfer Transfer In Out Major Governmental Funds: General fund $2,707,724 $15,098,209

Disaster recovery 700,000 0 Transportation and drainage 5,498,506 834,589 Debt service 16,571,259 0 Capital improvement program 288,565 81,844 Local option sales tax 0 8,665,715 Non-major Governmental Funds:

Mass transit 1,200,262 0 Grant projects 17,957 266,000

Tourist promotion 0 1,387,157 Public safety programs 375,347 1,101,330 Bob Sikes toll facilities 0 1,968,228 Clerk's court fund 4,026,518 0 Community redevelopment agency 1,061,578 0 Road construction 0 1,034,250 Major Business-type Activities:

Solid waste 0 1,931,330 Civic center 775,936 0 Non-major Business-type Activities: Ambulance 0 155,000 Internal Service Fund: 0 700,000

Total $33,223,652 $33,223,652



Interfund Receivables / Payables:

During the course of its operations, the County has numerous transactions between funds to financeoperations, povide services, construct assets, and service debt to the extent that certain interfundreceivables and payables exist as of September 30, 2004. 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 fund

Disaster recoveryTransportation and drainageDebt serviceCapital improvement programLocal option sales tax

Non-major Governmental Funds:

Mass transitGrant projects

Tourist promotionPublic safety programsBob Sikes toll facilitiesClerk's court fundCommunity redevelopment agencyRoad construction

Major Business-type Activities:

Solid wasteCivic center

Non-major Business-type Activities:Ambulance

Internal Service Fund:

Total

InterfundReceivables

InterfundPayables

AdvancesTo

AdvancesFrom

$3,085,836000

158,710

$1,349,11100

10,0631,711,971

$203,14200

10,110,6810

$010,000,000

110,6811,170,959

03,244,546

000

19,9731,329,138

3,071,145

23008

1,522,481

10,313,823

521,23100

3,104,4940

11,281,640

0203,142

2,454,7660O

$4,593,657

TransferIn

$4,593,657

TransferOut

$2,707,724700,000

5,498,50616,571,259

288,5650

1,200,26217,957

0375,347

04,026,5181,061,578

0

0775,936

00

$15,098,2090

834,5890

81,8448,665,715

0266,000

1,387,1571,101,3301,968,228

00

1,034,250

1,931,3300

155,000700,000

$33,223,652 $33,223,652

51

$13,939,548 $13,939,548



52

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. Restricted Assets for business activities contain the following balances: Total Internal

Solid Enterprise Service Waste Inspections Funds Fund Deposits $135,650 $152,433 $288,083 $72,544 Landfill closure 3,210,197 0 3,210,197 0

$3,345,847 $152,433 $3,498,280 $72,544

B. Liabilities Payable from Restricted Assets in the business-type activities contain the following balances: Total Solid Enterprise Internal Waste Inspections Funds Service Deposits $135,651 $152,433 $288,084 $72,544 Landfill closure and postclosure 93,161 0 93,161 0

$228,812 $152,433 $381,245 $72,544



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.

Restricted Assets for business activities contain the following balances:

Total Internal

Solid Enterprise ServiceWaste Inspections Funds Fund

Deposits $135,650 $152,433 $288,083 $72,544Landfill closure 3,210,197 0 3,210,197 0

$3,345,847 $152,433 $3,498,280 $72,544

B. Liabilities

Payable from Restricted Assets in the business-type activities contain the following balances:

TotalSolid Enterprise Internal

Waste Inspections Funds ServiceDeposits $135,651 $152,433 $288,084 $72,544Landfill closure and postclosure 93,161 0 93,161 0

$228,812 $152,433 $381,245 $72,544

52



53

Long-Term Debt Changes in long-term bonds, notes payable, loans, capital leases, and compensated absences during 2004 are as follows: Amounts Due Long-Term Beginning Within Balance

Balance One Year Remaining

Long-Term Debt 10/01/03 Additions (Retirements) of 09/30/04 09/30/04

Governmental-type activities: Sales Tax Revenue Bonds $89,730,000 $0 $0 ($1,680,000) $88,050,000 Road Improvement Revenue Bonds 6,055,000 0 (895,000) (935,000) 4,225,000 Capital Improvement Bonds 22,305,000 0 (415,000) (425,000) 21,465,000 Tourist Development Bonds 16,700,000 0 (840,000) (860,000) 15,000,000 Capital Improvement Notes 41,747,000 3,000,000 (7,364,000) (7,891,000) 29,492,000

State of Florida's Toll Facility Note 469,167 0 (83,333) (83,333) 302,501 Capital Leases 6,388,609 2,956,136 (1,057,920) (1,542,022) 6,744,803 General Compensated Absences 4,240,855 2,959,720 (2,577,604) (2,773,782) 1,849,189 Internal Service Compensated Absences 34,753 39,323 (31,812) 0 42,264 Elected Officials Compensated Absences: Clerk of the Circuit Court 1,203,123 733,786 (603,060) (214,529) 1,119,320 Sheriff 14,066,084 2,237,119 (1,238,073) (1,299,025) 13,766,105 Tax Collector 617,105 407,176 (351,807) 0 672,474

Property Appraiser 405,365 24,063 0 0 429,428

Total $203,962,061 $12,357,323 ($15,457,609) ($17,703,691) $183,158,084

Business-type activities: Notes Payable:

Solid Waste Note $1,184,362 $0 ($394,787) ($394,788) $394,787

Compensated Absences: Solid Waste Compensated Absences $361,596 $236,392 ($190,779) ($4,222) $402,987 Inspections Compensated Absences 438,541 185,998 (180,937) (12,287) 431,315 Ambulance Compensated Absences 375,082 289,703 (249,487) (9,221) 406,077

Total $1,175,219 $712,093 ($621,203) ($25,730) $1,240,379

The Internal Service fund predominantly serves the governmental funds. Accordingly, its long-term compensated absences liability of $42,264 is included in the above amounts.



Long-Term Debt Changesin long-term bonds, notes payable, loans, capital leases, and compensatedabsences during 2004 are as follows:

Long-Term Debt

Beginning

Balance

10/01/03 Additions (Retirements)

Amounts DueWithin

One Year

of 09/30/04

Long-TermBalance

Remaining

09/30/04Governmental-type activities:Sales TaX Revenue BondsRoad Improvement Revenue BondsCapital Improvement BondsTourist Development BondsCapital Improvement Notes

State of Florida's ToII Facility NoteCapital LeasesGeneral Compensated AbsencesInternal Service Compensated AbsencesElected Officials Compensated Absences:Clerk of the Circuit CourtSheriffTaX Collector

Property Appraiser

Total

Business-type activities:Notes Payable:

Solid Waste Note

Compensated Absences:Solid Waste Compensated AbsencesInspections Compensated AbsencesAmbulance Compensated Absences

Total

$89,730,0006,055,000

22,305,00016,700,00041,747,000

469,1676,388,6094,240,855

34,753

1,203,12314,066,084

617,105405,365

$0000

3,000,0000

2,956,1362,959,720

39,323

733,7862,237,119

407,17624,063

$0(895,000)(415,000)(840,000)

(7,364,000)(83,333)

(1,057,920)(2,577,604)

(31,812)

(603,060)(1,238,073)

(351,807)0

($1,680,000)(935,000)(425,000)(860,000)

(7,891,000)(83,333)

(1,542,022)(2,773,782)

0

(214,529)(1,299,025)

00

$88,050,0004,225,000

21,465,00015,000,00029,492,000

302,5016,744,8031,849,189

42,264

1,1 19,32013,766,105

672,474429,428

$203,962,061

$1,184,362

$361,596438,541375,082

$12,357,323

$0

$236,392185,998289,703

($15,457,609)

($394,787)

($190,779)(180,937)(249,487)

($17,703,691)

($394,788)

($4,222)(12,287)(9,221)

$183,158,084

$394,787

$402,987431,315406,077

$1,175,219 $712,093 ($621,203)

The Internal Service fund predominantly serves the governmental funds.compensated absences liability of $42,264 is included in the above amounts.

53

($25,730) $1,240,379

Accordingly, its long-term



54

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 - 5.000 935,000 to 1,135,000 01/01/09 $5,160,000

Total Road Improvement Bonds 5,160,000 Sales Tax Revenue Bonds Serial Bonds - Series 2002 2.000 - 5.250 1,680,000 to 3,290,000 10/01/22 41,355,000 Term Bond - Series 2002 4.75 3,450,000 to 5,485,000 10/01/33 48,375,000 Total Sales Tax Revenue Bonds 89,730,000

Capital Improvement Bonds Serial Bonds - Series 2002 2.75 - 4.50 425,000 to 675,000 10/01/17 4,470,000 Term Bonds - Series 2002 4.75 - 5.25 550,000 to 1,375,000 10/01/32 17,420,000

Total Road Improvement Bonds 21,890,000 Tourist Development Bonds Series 2002 2.00 - 5.00 860,000 to 1,355,000 10/01/19 15,860,000 Total Long-term Bonds 132,640,000 Notes: Capital Improvement Notes City of Gulf Breeze - Series 1997 Variable 345,000 to 1,085,000 10/01/17 9,130,000 City of Gulf Breeze - Series 1998 Variable 2,641,000 to 2,856,000 02/01/07 8,243,000

City of Gulf Breeze - Series 1999B 4.5462 1,010,000 12/01/04 1,010,000 City of Gulf Breeze - Series 1999C 4.5462 3,695,000 to 7,385,000 05/01/07 16,000,000 * City of Gulf Breeze - Series 2003 Variable 120,000 to 240,000 10/01/17 3,000,000 Total Capital Improvement Notes 37,383,000 Other Notes

State of Florida's Toll Facilities Note Interest free 52,500 to 83,334 06/16/09 385,834 Total Long-term Notes 37,768,834

Capital Leases SunTrust - Central Chiller Lease 3.55 232,297 to 300,304 04/01/11 1,884,749 SunTrust - Heavy Equipment Lease 2.605 812,955 to 878,813 08/14/08 3,382,398 SunTrust - Leonard Street Chiller 3.25 343,060 to 444,652 05/28/11 2,807,345 Tax Collector 5.00 8,964 to 107,566 09/30/07 212,333 Total Capital Leases 8,286,825 *Principal annual payments are not due until 12/01/04--only three annual principal payments.

(Continued)



Long-term Debt for governmental activities consists of the following:

Interest Annual Final AmountGovernmental Activities Rates % Principal Maturity Outstanding

Bonds:Road Improvement BondsSeries 1993B 4.750 - 5.000 935,000 to 1,135,000 01/01/09 $5,160,000

Total Road Improvement Bonds 5,160,000

Sales Tax Revenue BondsSerial Bonds - Series 2002 2.000 - 5.250 1,680,000 to 3,290,000 10/01/22 41,355,000Term Bond - Series 2002 4.75 3,450,000 to 5,485,000 10/01/33 48,375,000

Total Sales Tax Revenue Bonds 89,730,000

Capital Improvement BondsSerial Bonds - Series 2002 2.75 - 4.50 425,000 to 675,000 10/01/17 4,470,000Term Bonds - Series 2002 4.75 - 5.25 550,000 to 1,375,000 10/01/32 17,420,000

Total Road Improvement Bonds 21,890,000

Tourist Development BondsSeries 2002 2.00 - 5.00 860,000 to 1,355,000 10/01/19 15,860,000

Total Long-term Bonds 132,640,000

Notes:Capital Improvement NotesCity of Gulf Breeze - Series 1997 Variable 345,000 to 1,085,000 10/01/17 9,130,000City of Gulf Breeze - Series 1998 Variable 2,641,000 to 2,856,000 02/01/07 8,243,000City of Gulf Breeze - Series 1999B 4.5462 1,010,000 12/01/04 1,010,000City of Gulf Breeze - Series 1999C 4.5462 3,695,000 to 7,385,000 05/01/07 16,000,000 *City of Gulf Breeze - Series 2003 Variable 120,000 to 240,000 10/01/17 3,000,000

Total Capital Improvement Notes 37,383,000

Other Notes

State of Florida's ToII Facilities Note Interest free 52,500 to 83,334 06/16/09 385,834Total Long-term Notes 37,768,834

Capital LeasesSunTrust - Central Chiller Lease 3.55 232,297 to 300,304 04/01/11 1,884,749SunTrust - Heavy Equipment Lease 2.605 812,955 to 878,813 08/14/08 3,382,398SunTrust - Leonard Street Chiller 3.25 343,060 to 444,652 05/28/11 2,807,345Tax Collector 5.00 8,964 to 107,566 09/30/07 212,333Total Capital Leases 8,286,825

*Principal annual payments are not due until 12/01/04—only three annual principal payments.

(Continued)

54



55

Compensated Absences: Board of County Commissioners N / A -- -- N / A 4,665,235 Clerk of the Circuit Court N / A -- -- N / A 1,333,849 Sheriff N / A -- -- N / A 15,065,130 Tax Collector N / A -- -- N / A 672,474 Property Appraiser N / A -- -- N / A 429,428 Total Compensated Absences 22,166,116

Total Long-Term Debt $200,861,775

Business activity long-term debt consists of the following: Amount

Interest Annual Final Outstanding

Business Activities Rates % Principal Maturity 9/30/2004

Solid Waste Fund Other Notes Sun Trust Line of Credit Variable $394,787 12/31/05 $789,575 Less: Current portion (394,788)

Total Other Notes $394,787

Compensated Absences-Business Activities:

Solid Waste Fund N / A N / A $402,987 Inspections Fund N / A N / A 431,315 Ambulance N / A N / A 406,077

Total Business Activities Compensated Absences $1,240,379



Compensated Absences:Board of County Commissioners N IAClerk of the Circuit Court N IASheriff N IATax Collector N IAProperty Appraiser N IATotal Compensated Absences

Total Long-Term Debt

Business activity long-term debt consists of the following:

Business Activities

Interest

Rates %

N IA 4,665,235N IA 1,333,849N IA 15,065,130N IA 672,474N IA 429,428

22,166,116

$200,861,775

AmountAnnual Final Outstanding

Principal Maturity 9/30/2004

Solid Waste FundOther NotesSun Trust Line of Credit

Less: Current portion

Total Other Notes

Compensated Absences -Business Activities:

Solid Waste FundInspections FundAmbulance

Total Business Activities Compensated Absences

Variable

NIANIANIA

55

$394,787 12/31/05 $789,575(394,788)

$394,787

N IA $402,987N IA 431,315N IA 406,077

$1,240,379



56

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

2005 $3,900,000 $5,889,236 $7,974,333 $1,020,400 $18,783,969 2006 4,010,000 5,780,043 8,339,333 742,534 18,871,910 2007 4,125,000 5,660,731 10,949,333 436,015 21,171,079 2008 4,260,000 5,526,741 748,335 182,203 10,717,279 2009 4,415,000 5,365,310 752,500 168,877 10,701,687

2010-2014 18,100,000 25,008,034 4,350,000 614,464 48,072,498 2015-2019 22,450,000 20,648,751 4,655,000 144,200 47,897,951 2020-2024 20,720,000 15,254,250 0 0 35,974,250 2025-2029 26,225,000 9,747,863 0 0 35,972,863 2030-2032 24,435,000 2,890,412 0 0 27,325,412

Total governmental debt $132,640,000 $101,771,371 $37,768,834 $3,308,693 $275,488,898

Business-Type Activities Long-Term Debt

Fiscal Total Year Principal

Ending Notes and September 30, Principal Interest Interest

2005 $394,788 $6,134 $400,922 2006 394,787 1,235 396,022

Total 789,575 7,369 796,944 Less current: (394,788) 0 (394,788)

Total business-type debt $394,787 $7,369 $402,156

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



Annual debt service requirements to maturity to retire long-term bonds, notes, and loans are asfollows:

Governmental Long-Term DebtFiscal

YearEnding

September 30,

Revenue Bonds Notes and Loans

Principal Interest Principal Interest

Total

Principaland

Interest

20052006200720082009

2010-20142015-20192020-20242025-20292030-2032

Total governmental debt

Business-Type Activities Long-Term DebtFiscalYear

EndingSeptember 30,

$3,900,0004,010,0004,125,0004,260,0004,415,000

18,100,00022,450,00020,720,00026,225,00024,435,000

$5,889,2365,780,0435,660,7315,526,7415,365,310

25,008,03420,648,75115,254,2509,747,8632,890,412

$7,974,3338,339,333

10,949,333748,335752,500

4,350,0004,655,000

000

$1,020,400742,534436,015182,203168,877614,464144,200

000

$18,783,96918,871,91021,171,07910,717,27910,701,68748,072,49847,897,95135,974,25035,972,86327,325,412

$132,640,000

Notes

$101,771,371

Principal Interest

$37,768,834

TotalPrincipal

andInterest

TotalLess current:

20052006

Total business-type debt

$394,788394,787

$6,1341,235

$400,922396,022

789,575(394,788)

7,3690

796,944(394,788)

$394,787 $7,369 $402,156

$3,308,693 $275,488,898

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 of

56



57

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 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 Loc al 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, 2004 was 1.224%. 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, 2004, the rate was 1.85%.



the 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 Countyincluding (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, 2004 was 1.224%. 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, 2004, the rate was 1.85%.

57



58

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, 2004, the rate was 1.85%. 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%). 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, 2004, the rate was 1.85% 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 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, 2004, the rate was 1.85%.

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%).

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, 2004, the rate was 1.85%

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 (Ner 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).

58



59

Capital Leases The Tax Collector and the Board of County Commissioners are 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. The Santa Rosa Island Authority has entered into three capital leases for office equipment. Term of the leases are 36 months for two of the leases and 60 months for the remaining lease. The Authority has also entered into a capital lease with a term of 5 months, for an off-road vehicle. Maturities of the obligations under capital lease are as follows: Board of Santa Rosa Tax County Island Collector Commissioners Authority Balance 10/01/03 $306,770 $6,081,839 $26,583

Additions 56,136 2,900,000 0 Principal payments (150,573) (907,347) (18,446)

Balance 09/30/04 $212,333 $8,074,492 $8,137

Future lease payments 2005 $107,566 $1,673,279 $4,191 2006 107,566 1,673,283 3,874 2007 8,964 1,673,282 2,278 2008 0 1,673,282 0 2009 0 780,112 0 2010 - 2014 0 1,365,190 0

Total minimum lease payments 224,096 8,838,428 10,343 Less amount representing interest (11,763) (763,936) (2,206)

Net minimum lease payments $212,333 $8,074,492 $8,137

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, 2004, seven bond issues are outstanding with an aggregate principal amount of $76,965,000. 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, 2004, 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



Capital Leases

The Tax Collector and the Board of County Commissioners are obligated under lease-purchaseagreements for purchases of software, heavy equipment, new chiller equipment, and the construction ofa new Work Release Facility. These leases qualify as capital leases for accounting purposes and arerecorded at the present value of the future minimum lease payments at the inception of the lease. Theacquired assets have been recorded in the governmental fund assets of Escambia County, Florida.

The Santa Rosa Island Authority has entered into three capital leases for office equipment. Term of theleases are 36 months for two of the leases and 60 months for the remaining lease. The Authority hasalso entered into a capital lease with a term of 5 months, for an off-road vehicle.

Maturities of the obligations under capital lease are as follows:

Board of Santa RosaTax County Island

Collector Commissioners AuthorityBalance 10/01/03 $306,770 $6,081,839 $26,583Additions 56,136 2,900,000 0Principal payments (150,573) (907,347) (18,446)

Balance 09/30/04 $212,333 $8,074,492 $8,137

Future lease payments2005 $107,566 $1,673,279 $4,1912006 107,566 1,673,283 3,8742007 8,964 1,673,282 2,2782008 0 1,673,282 02009 0 780,112 0

2010-2014 0 1,365,190 0Total minimum lease payments 224,096 8,838,428 10,343Less amount representing interest (11,763) (763,936) (2,206)

Net minimum lease payments $212,333 $8,074,492 $8,137

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, 2004, seven bond issues areoutstanding with an aggregate principal amount of $76,965,000.

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, 2004, 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 the

59



60

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, 2004, the outstanding conduit debt of Escambia County is $2,012,565,054. 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. Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill is the only site accepting waste. At year end, $9,314,593 was reported ($93,161 payable from restricted assets and $9,221,432 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 2004, determined from the most recently available engineering studies computed on the ratio of landfill capacity filled at year end to total estimated capacity (71.43%). The County will recognize the remaining estimated costs of closure and postclosure care of approximately $2.9 million as the remaining estimated capacity is filled. The Perdido Landfill is expected to be filled between early 2005 and mid-2008. Actual cost may be higher due to inflation, changes in technology or changes in regulations. The County is required by state and federal laws and regulations 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, 2004 with restricted cash and investments of $3,210,197 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. Restricted Net Assets at September 30, 2004 contain the following balances: Restricted Net Assets - Governmental Activities: General $1,183,056 Disaster recovery 153,000 Transportation and drainage 625,043

Debt service 8,518,034 Capital improvement program 7,876,475 Local option sales tax 17,586,424 Non-major governmental funds 3,873,141

$39,815,173



underlying 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, 2004, the outstanding conduit debt ofEscambia County is $2,012,565,054.

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.Currently, the Beulah, Klondike, Mobile Highway and Camp Five sites are closed. The Perdido Landfill isthe only site accepting waste.

At year end, $9,314,593 was reported ($93,161 payable from restricted assets and $9,221,432 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 2004, determined fromthe most recently available engineering studies computed on the ratio of landfill capacity filled at year endto total estimated capacity (71.43%). The County will recognize the remaining estimated costs of closureand postclosure care of approximately $2.9 million as the remaining estimated capacity is filled. ThePerdido Landfill is expected to be filled between early 2005 and mid-2008. Actual cost may be higher dueto inflation, changes in technology or changes in regulations.

The County is required by state and federal laws and regulations to make annual contributions to a cashescrow account to accumulate funds for future closure and maintenance costs. The County is incompliance with these requirements at September 30, 2004 with restricted cash and investments of$3,210,197 held for these purposes. In the event closure escrows and interest earnings proveinadequate clue to inflation, changes in technology or additional closure/postclosure care requirements,these costs may need to be covered by increased user charges.

Restricted Net Assets at September 30, 2004 contain the following balances:

Restricted Net Assets- Governmental Activities:General $1,183,056Disaster recovery 153,000Transportation and drainage 625,043

Debt service 8,518,034Capital improvement program 7,876,475Local option sales tax 17,586,424Non-major governmental funds 3,873,141

$39,815,173

60



61

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 $350,000 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, 2004, 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 claims liabilities totaling $17,944,504 reported in the Internal Service Fund at September 30, 2004 are actuarially determined based on historical and current information regarding the Fund. Changes in the estimated liability for self-insured losses for the past two years are as follows: 2004 2003 Unpaid claims, beginning $16,951,375 $13,389,823 Claims incurred 8,503,647 7,022,823 Less: claims paid (7,510,519) (3,461,271)Unpaid claims, ending $17,944,503 $16,951,375

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.



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 $350,000 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, 2004, 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). Theclaims liabilities totaling $17,944,504 reported in the Internal Service Fund at September 30, 2004 areactuarially determined based on historical and current information regarding the Fund.

Changes in the estimated liability for self-insured losses for the past two years are as follows:

2004 2003Unpaid claims, beginning $16,951,375 $13,389,823Claims incurred 8,503,647 7,022,823Less: claims paid (7,510,519) (3,461,271)Unpaid claims, ending $17,944,503 $16,951,375

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.

61



62

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, 2004 were as follows: regular employees, 7.39%, special risk employees, 18.53%, elected officials, 15.23%, senior management employees, 9.37%, and DROP participants, 9.11%. 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: 2004 2003 2002 Primary government $10,948,840 $9,048,365 $9,176,385 Discretely presented component units: Civil Service Board 34,732 33,445 42,446

Santa Rosa Island Authority 93,719 83,667 82,027 Law Library Board 1,558 1,753 1,632

$11,078,849 $9,167,230 $9,302,490

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 $3.5 million per year. However, due to the devastation of Hurricane Ivan, the Authority is anticipating that commercial lease revenues for fiscal year 2005 will be approximately $2.15 million less than budgeted and $1.95 million less than actual commercial lease revenue for fiscal year 2004. Construction Commitments - The County has active construction projects as of September 30, 2004 as follows: Engineering Services - Building $1,250,778 Engineering Services - Road Paving and Drainage 881,085

Engineering Services - Parks 232,321 Engineering Services - Solid Waste 631,063 Building Contract - Building Construction 10,973,584 Road Contract - Road Paving and Drainage 6,339,027 Construction Contract - Solid Waste 45,258 Miscellaneous Contracts 35,235

$20,388,351



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 hr the year ended September 30, 2004 were as follows:regular employees, 7.39%, special risk employees, 18.53%, elected officials, 15.23%, seniormanagement employees, 9.37%, and DROP participants, 9.11%.

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:

2004 2003 2002Primary government $10,948,840 $9,048,365 $9,176,385Discretely presented component units:

Civil Service Board 34,732 33,445 42,446Santa Rosa Island Authority 93,719 83,667 82,027Law Library Board 1,558 1,753 1,632

$11,078,849 $9,167,230 $9,302,490

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 $3.5 million per year. However, due to the devastation of Hurricane Ivan, the Authority isanticipating that commercial lease revenues for fiscal year 2005 will be approximately $2.15 million lessthan budgeted and $1.95 million less than actual commercial lease revenue for fiscal year 2004.

Construction Commitments - The County has active construction projects as of September 30, 2004 asfollows:

Engineering Services- Building $1,250,778Engineering Services- Road Paving and Drainage 881,085

Engineering Services- Parks 232,321Engineering Services- Solid Waste 631,063Building Contract - Building Construction 10,973,584Road Contract - Road Paving and Drainage 6,339,027Construction Contract - Solid Waste 45,258Miscellaneous Contracts 35,235

$20,388,351

62



63

Of these commitments, 19,419,906 is reported in the governmental fund financial statements as reserved for encumbrances. The remaining $968,445 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, 2004. 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 $516,128 are included in Reserve for Encumbrances at September 30, 2004. The County contracts with Facility Management Corporation of Pensacola, c/o SMG for management and catering services for the Pensacola Civic Center. The management fee during 2004 was $249,782. A new contract fee is being negotiated for fiscal 2005 at a base rate of $150,000 along with performance incentives. The Santa Rosa Island Authority entered into various capital improvement contracts during the year. As of September 30, 2004, the Authority had outstanding commitments under these contracts totaling $498,531. 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 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. During 2004, the Sheriff paid $3,622,224 plus $.75 per inmate per day for those inmates assigned to the Work Camp. All financial considerations are based on predetermined inmate populations and adjustments to the payments will be based on variations from the monthly population. 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. Medical service expense under this contract for the year ended September 30, 2004 was $3,691,247. The Sheriff entered into 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. Food service expense under this contract for the year ended September 30, 2004 was $1,594,720. Operating leases for the Board of County Commissioners are for various spaces throughout the County containing minimum guaranteed rentals averaging $35,232 monthly. The Board of County Commissioners has the option to extend lease terms annually. Lease expense for the year ended September 30, 2004 was $422,789. The Civil Service Board leases office space under a twenty-six month lease containing a monthly minimum guaranteed rental of $4,018. Rental expense for a fiscal year ended September 30, 2004 was $48,216. The lease expires September 30, 2005, with remaining lease payments of $48,216. The Tax Collector is obligated under operating leases for office space with noncancellable terms in excess of one year as of September 30, 2004. Rent expense for the year ended September 30, 2004 was $221,195.



Of these commitments, 19,419,906 is reported in the governmental fund financial statements as reservedfor encumbrances. The remaining $968,445 represents commitments in proprietary type funds which arenot included in the financial statements in accordance with GAAP. These commitments are evidenced bysigned purchase orders and contracts which were entered into prior to September 30, 2004.

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 $516,128 are included inReserve for Encumbrances at September 30, 2004.

The County contracts with Facility Management Corporation of Pensacola, c/o SMG for management andcatering services for the Pensacola Civic Center. The management fee during 2004 was $249,782. Anew contract fee is being negotiated for fiscal 2005 at a base rate of $150,000 along with performanceincentives.

The Santa Rosa Island Authority entered into various capital improvement contracts during the year. Asof September 30, 2004, the Authority had outstanding commitments under these contracts totaling$498,531.

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 TouristDevelopment 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. During 2004, the Sheriff paid$3,622,224 plus $.75 per inmate per day for those inmates assigned to the Work Camp. All financialconsiderations are based on predetermined inmate populations and adjustments to the payments will bebased on variations from the monthly population. Effective September 1, 2004, the agreement wasrenewed for the first of the two optional one-year terms, at a base price of $3,761,585. Medical serviceexpense under this contract for the year ended September 30, 2004 was $3,691,247.

The Sheriff entered into a cancelable agreement with a vendor to provide management, food, materialsand supplies to feed the inmate population at the corrections facility and the Escambia County Jail. Foodservice expense under this contract for the year ended September 30, 2004 was $1,594,720.

Operating leases for the Board of County Commissioners are for various spaces throughout the Countycontaining minimum guaranteed rentals averaging $35,232 monthly. The Board of CountyCommissioners has the option to extend lease terms annually. Lease expense for the year endedSeptember 30, 2004 was $422,789.

The Civil Service Board leases office space under a twenty-six month lease containing a monthlyminimum guaranteed rental of $4,018. Rental expense for a fiscal year ended September 30, 2004 was$48,216. The lease expires September 30, 2005, with remaining lease payments of $48,216.

The Tax Collector is obligated under operating leases for office space with noncancellable terms inexcess of one year as of September 30, 2004. Rent expense for the year ended September 30, 2004was $221,195.

63



64

The Sheriff leases equipment under an agreement effective through January 30, 2006. Rental expense for the year ended September 30, 2004 was $85,500. Future minimum payments, as of September 30, 2004 for the Sheriff and Tax Collector, are as follows: Tax Collector Sheriff Year Amount Amount 2005 $212,068 $67,800

2006 222,860 22,600 2007 226,256 0 2008 243,048 0 2009 276,444 0 2010 and after 921,036 0

$2,101,712 $90,400

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 – HURRICANE IVAN In September 2004, the County incurred significant payroll and operating costs related to work performed in the aid of public safety during the aftermath of Hurricane Ivan. 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 Hurricane Ivan. These Federal and State declarations provide for the reimbursement of related costs at 90% of eligible costs from Federal funding and 5% from State funding sources. The County will pay the remaining 5%. 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 Hurricane Ivan.



The Sheriff leases equipment under an agreement effective through January 30, 2006. Rental expensefor the year ended September 30, 2004 was $85,500.

Future minimum payments, as of September 30, 2004 for the Sheriff and Tax Collector, are as follows:

TaxCollector Sheriff

Year Amount Amount2005 $212,068 $67,8002006 222,860 22,6002007 226,256 02008 243,048 02009 276,444 0

2010 and after 921,036 0

$2,101,712 $90,400

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 — HURRICANE IVAN

In September 2004, the County incurred significant payroll and operating costs related to work performedin the aid of public safety during the aftermath of Hurricane Ivan. 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 Hurricane Ivan. These Federal and State declarationsprovide for the reimbursement of related costs at 90% of eligible costs from Federal funding and 5% fromState funding sources. The County will pay the remaining 5%. The County has estimated and includedin 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 priorto payment. The County continues to make assessments of the overall financial impact caused byHurricane Ivan.

64



65

NOTE 7 – SUBSEQUENT EVENTS On Election Day, November 2, 2004, the following commissioners were elected into office. Their term of office began on November 15, 2004, and expires as indicated below: District 1, Commissioner Mike Whitehead—term expires November 2008 District 3, Commissioner Marie Young—term expires November 2008 District 5, Commissioner Kevin White—term expires November 2008 Subsequent to September 30, 2004, the Santa Rosa Island Authority entered into contracts for road improvement projects totaling approximately $16,223,000.



NOTE 7 — SUBSEQUENT EVENTS

On Election Day, November 2, 2004, the following commissioners were elected into office. Their term ofoffice began on November 15, 2004, and expires as indicated below:

District 1, Commissioner Mike Whitehead—term expires November 2008District 3, Commissioner Marie Young—term expires November 2008District 5, Commissioner Kevin White—term expires November 2008

Subsequent to September 30, 2004, the Santa Rosa Island Authority entered into contracts for roadimprovement projects totaling approximately $16,223,000.

65

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 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 of the 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 advertisement ofEscambia County tourism. Financing is provided by a tourist development tax levied under Chapter 125.0104Florida 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 on SantaRosa 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 a statewiderecording system.

Clerk’s Court Fund — to account for revenues and costs for court related fees, charges, costs, fines and othermonetary penalties.

Sheriff’s Programs— to account for the collection and expenditure of US. Treasury and US. Justice forfeituresharing programs, as well as monies received from various Federal and State grants. This also includes therevenues 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

Federal Transit Administration Fund - to account for the 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 proceeds usedfor the engineering study on the feasibility of Interstate 110 extension.


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET Special Revenue Funds

Bob Clerk'sSEPTEMBER 30, 2004 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 $3,477,765 $0 $2,598,274 $600 $453,650 $840,952Equity in pooled cash and investments 32,002 2,696,982 5,820,446 5,519,589 2,902,961 0 0Investments 0 0 0 0 0 0 0Receivables (net of allowance for uncollectibles) 159,475 74,357 0 78,230 50 33 1,463Due from other funds 0 3,697 159 88,484 0 0 0Due from other governmental units 655,016 1,082,524 0 107,155 1,182 0 119,659Inventory 171,522 0 0 46,891 0 0 0 Total assets $1,018,015 $7,335,325 $5,820,605 $8,438,623 $2,904,793 $453,683 $962,074

Liabilities and Fund Balances

Liabilities: Vouchers payable $483,451 $558,000 $1,067,525 $551,809 $150,210 $0 $11,831 Contracts payable 0 4,830 0 80,830 123,423 0 0 Salaries and compensated absences payable 0 22,646 0 179,955 0 0 445,120 Due to other funds 0 64,942 0 1,492 0 0 88,940 Due to other governmental units 2,208 267,814 207,627 82,602 96 0 369,483 Other current liabilities 0 538,745 0 0 0 0 46,700 Total liabilities 485,659 1,456,977 1,275,152 896,688 273,729 0 962,074

Fund balances: Reserved for encumbrances 14,692 942,788 136,144 2,333,474 175,968 0 0 Reserved for inventory 171,522 0 0 46,891 0 0 0 Unreserved - undesignated 346,142 4,935,560 4,409,309 5,161,570 2,455,096 453,683 0 Total fund balances 532,356 5,878,348 4,545,453 7,541,935 2,631,064 453,683 0 Total liabilities and fund balances $1,018,015 $7,335,325 $5,820,605 $8,438,623 $2,904,793 $453,683 $962,074

(Continued)

66


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET Special Revenue Funds

Bob Clerk'sSEPTEMBER 30, 2004 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 $3,477,765 $0 $2,598,274 $600 $453,650 $840,952Equity in pooled cash and investments 32,002 2,696,982 5,820,446 5,519,589 2,902,961 0 0Investments 0 0 0 0 0 0 0Receivables (net of allowance for uncollectibles) 159,475 74,357 0 78,230 50 33 1,463Due from other funds 0 3,697 159 88,484 0 0 0Due from other governmental units 655,016 1,082,524 0 107,155 1,182 0 119,659Inventory 171,522 0 0 46,891 0 0 0

Total assets $1,018,015 $7,335,325 $5,820,605 $8,438,623 $2,904,793 $453,683 $962,074


Liabilities:Vouchers payable $483,451 $558,000 $1,067,525 $551,809 $150,210 $Contracts payable 0 4,830 0 80,830 123,423Salaries and compensated absences payable 0 22,646 0 179,955 0Due to other funds 0 64,942 0 1,492 0Due to other governmental units 2,208 267,814 207,627 82,602 96Other current liabilities 0 538,745 0 0 0

$11,8310

445,12088,940

369,48346,700

00

00

00

0

Total liabilities 485,659 1,456,977 1,275,152 896,688 273,729 962,074

Fund balances:Reserved for encumbrances 14,692 942,788 136,144 2,333,474 175,968 0Reserved for inventory 171,522 0 0 46,891 0 0

Total fund balances 532,356 5,878,348 4,545,453 7,541,935 2,631,064 453,683

00

Unreserved - undesignated 346,142 4,935,560 4,409,309 5,161,570 2,455,096 453,683 004Total liabilities and fund balances $1,018,015 $7,335,325 $5,820,605 $8,438,623 $2,904,793 $453,683 $962,07

(Continued)

66


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2004

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 and compensated absences 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 FederalSheriff's Redevelopment Trust Transit Road

Programs Agency Fund Administration Construction Totals

$1,843,210 $0 $0 $0 $0 $9,214,4510 946,020 272,476 253,082 1,558,550 20,002,108

200,000 0 0 0 0 200,00082,950 0 1,994 0 0 398,55266,370 0 0 0 0 158,710

1,491,655 0 7,673 37,900 161,158 3,663,9220 0 0 0 0 218,413

$3,684,185 $946,020 $282,143 $290,982 $1,719,708 $33,856,156

$316,258 $29,784 $5,118 $40,588 $14,959 $3,229,533

0 0 0 0 3,264 212,3471,211,936 9,048 0 0 3,689 1,872,3941,556,597 0 0 0 0 1,711,971

0 0 41,553 0 0 971,383127,719 0 3,948 0 0 717,112

3,212,510 38,832 50,619 40,588 21,912 8,714,740

0 22,240 0 5,922 23,500 3,654,7280 0 0 0 0 218,413

471,675 884,948 231,524 244,472 1,674,296 21,268,275471,675 907,188 231,524 250,394 1,697,796 25,141,416

$3,684,185 $946,020 $282,143 $290,982 $1,719,708 $33,856,156

67


NON-MAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEET(Continued)SEPTEMBER 30, 2004

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


Sheriff'sPrograms

$1,843,2100

200,00082,95066,370

1,491,6550

CommunityRedevelopment

Agency

$0946,020

0

GeneralTrustFund

$0272,476

01,994

07,673

0

FederalTransit

AdministrationRoad

Construction

$0253,082

000

37,9000

$01,558,550

000

161,1580

Totals

$9,214,45120,002,108

200,000398,552158,710

3,663,922218,413

Liabilities:Vouchers payableContracts payableSalaries and compensated absences 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

$3,684,185

$316,2580

1,211,9361,556,597

0127,719

00000$946,02

$29,7840

9,048000

$282,143

$5,118

41,5533,948

$290,982

$40,588

$1,719,708

$14,9593,2643,689

000

$33,856,156

$3,229,533212,347

1,872,3941,711,971

971,383717,112

3,212,510 38,832 50,619

00000840,58 21,912 8,714,740

00

471,675

22,2400

884,948

00

231,524

5,9220

244,472

23,5000

1,674,296

3,654,728218,413

21,268,275471,675 907,188 231,524 250,394 1,697,796 25,141,416

$3,684,185 $946,020

67

$282,143 $290,982 $1,719,708 $33,856,156



COMBINING STATEMENT OF REVENUES, EXPENDITURES Special Revenue FundsAND CHANGES IN FUND BALANCES Bob Clerk's

Public Sikes Public Records Clerk'sYEAR ENDED SEPTEMBER 30, 2004 Mass Grant Tourist Safety Toll Modernization Court Sheriff's

Transit Projects Promotion Programs Facilities Trust Fund ProgramsRevenues: Taxes $0 $0 $4,767,723 $0 $0 $0 $0 $0 Intergovernmental 4,602,983 13,347,972 0 355,460 0 0 308,523 2,129,273 Charges for services 874,102 72,618 0 3,086,812 3,225,958 258,195 2,227,658 75,711 Fines and forfeitures 0 0 0 341,148 0 0 0 329,657 Investment income 4,719 63,417 62,862 153,441 38,973 4,992 60,246 4,029 Special assessments 0 0 0 10,209,635 0 0 0 0 Miscellaneous 66,642 370,569 247 15,606 7,247 0 22,873 519,218 Total revenues 5,548,446 13,854,576 4,830,832 14,162,102 3,272,178 263,187 2,619,300 3,057,888

Expenditures: Current: General government 0 294,589 0 231,712 1,417,342 164,066 6,959,018 0 Public safety 0 2,252,912 0 12,546,982 0 0 0 3,344,372 Physical environment 0 231,100 0 0 0 0 0 0 Transportation 6,783,538 0 0 0 0 0 0 0 Economic environment 0 7,396,126 3,528,388 0 0 0 0 0 Human services 0 1,114,542 0 0 0 0 0 0 Culture and recreation 0 169,990 44,364 0 0 0 0 0 Debt service Interest and fiscal charges 2,662 41 0 51,050 0 0 0 0 Total expenditures 6,786,200 11,459,300 3,572,752 12,829,744 1,417,342 164,066 6,959,018 3,344,372

Excess (deficiency) of revenue over (under) expenditures (1,237,754) 2,395,276 1,258,080 1,332,358 1,854,836 99,121 (4,339,718) (286,484)

Other financing sources (uses): Note proceeds 0 0 0 3,000,000 0 0 0 0 Clerk of court trust fund revenue 0 0 0 0 0 0 313,200 0 Transfers in 1,200,262 17,957 0 375,347 0 0 4,026,518 0 Transfers out 0 (266,000) (1,387,157) (1,101,330) (1,968,228) 0 0 0 Net other financing sources (uses) 1,200,262 (248,043) (1,387,157) 2,274,017 (1,968,228) 0 4,339,718 0

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses (37,492) 2,147,233 (129,077) 3,606,375 (113,392) 99,121 0 (286,484)

Fund balances at beginning of year 569,848 3,731,115 4,674,530 3,935,560 2,744,456 354,562 0 758,159Fund balances at end of year $532,356 $5,878,348 $4,545,453 $7,541,935 $2,631,064 $453,683 $0 $471,675

(Continued)

68



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES


Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt sen/iceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Note proceedsClerk of court trust fund revenue

Transfers inTransfers out

Net other financing sources (uses)

Excess (deficiency) of revenues and other sourcesover (under) expenditures and other uses

Fund balances at beginning of yearFund balances at end of year

Special Revenue Funds

MassTransit

$04,602,983

874,1020

4,7190

66,642

GrantPro'ects

$013,347,972

72,6180

63,4170

370,569

TouristPromotion

$4,767,723000

62,8620

247

PublicSafety

Programs

$0355,460

3,086,812341,148153,441

10,209,63515,606

BobSikesToll

Facilities

$00

3,225,9580

38,9730

7,247

Clerk'sPublic RecordsModernization

M

$00

258,1950

4,99200

ClerksCounFund

$0308,523

2,227,6580

60,2460

22,873

Sheriff‘sPrograms

$02,129,273

75,711329,657

4,0290

519,2185,548,446 13,854,576 4,830,832 14,162,102 3,272,178 263,187 2,619,300 3,057,888

000

6,783,538000

2,662

294,5892,252,912

231,1000

7,396,1261,114,542

169,990

41

00

00

3,528,388

44,364

0

231,71212,546,982

0

00

00

51,050

1,417,342

00

00

00

0

164,066

OO

OO

OO

6,959,018

00

00

00

0

03,344,372

0

GO

OD

06,786,200 11,459,300 3,572,752 12,829,744 1,417,342 164,066 6,959,018 3,344,372

(1,237,754) 2,395,276 1,258,080 1,332,358 1,854,836 99,121 (4,339,718) (286,484)

00

1,200,2620

00

17,057(266,000)

0o0

(1,387,157)

3,000,0000

375,347(1,101,330)

000

(1,968,228)

0313,200

4,026,5180

1,200,262 (248,043) (1,387,157) 2,274,017 (1,968,228) OO

OO

O

4,339,718 OO

OO

O

(37,492) 2,147,233 (120,077) 3,606,375 (113,392) 99,121 (286,484)

569,848 3,731,115 4,674,530 3,935,560 2,744,456 354,562 758,159$532,356 $5,878,348 $4,545,453

68

$7,541,935 $2,631,064 $453,683 $0 $471,675(Continued)



COMBINING STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES(Continued)YEAR ENDED SEPTEMBER 30, 2004

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): Note proceeds Clerk of court trust fund revenue Transfers in Transfers out Net other financing sources (uses)

Excess (deficiency) of revenues and other sources over (under) expenditures and other uses



Community General FederalRedevelopment Trust Transit Road

Agency Fund Administration Construction Totals

$0 $0 $0 $1,635,803 $6,403,5260 21,736 873,365 0 21,639,3120 53,856 0 0 9,874,9100 0 0 0 670,805

9,933 2,536 2,322 22,415 429,8850 0 0 0 10,209,635

2,325 29,794 274 0 1,034,79512,258 107,922 875,961 1,658,218 50,262,868

584,236 0 0 0 9,650,9630 0 0 0 18,144,2660 955 0 0 232,0550 0 873,365 812,058 8,468,9610 0 0 0 10,924,5140 0 0 0 1,114,5420 22,116 0 0 236,470

0 0 0 0 53,753584,236 23,071 873,365 812,058 48,825,524

(571,978) 84,851 2,596 846,160 1,437,344

0 0 0 0 3,000,0000 0 0 0 313,200

1,061,578 0 0 0 6,681,6620 0 0 (1,034,250) (5,756,965)

1,061,578 0 0 (1,034,250) 4,237,897

489,600 84,851 2,596 (188,090) 5,675,241

417,588 146,673 247,798 1,885,886 19,466,175$907,188 $231,524 $250,394 $1,697,796 $25,141,416

69



COMBINING STATEMENT OF REVENUES,EXPENDITURESAND CHANGES IN FUND BALANCES(Continued)YEAR ENDED SEPTEMBER 30, 2004

Revenues:TaxesIntergovernmentalCharges for servicesFines and forfeituresInvestment incomeSpecial assessmentsMiscellaneous

Total revenues



Debt sen/iceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Note proceedsClerk of court trust fund revenue

Transfers inTransfers out

Net other financing sources (uses)

Excess (deficiency) of revenues and other sourcesover (under) expenditures and other uses



CommunityRedevelopment

Agency

$0000

9,933

2,325

GeneralTrustFund

$021,73653,856

02,536

029,794

FederalTransit

Administration

$0873,365

00

2,3220

274

RoadConstruction

$1,635,803

Totals

$6,403,52621,639,312

9,874,910670,805429,885

10,209,6351,034,795

12,258 107,922 875,961 1,658,218 50,262,868

584,236

00

00

00

000

873,365000

0

000

812,058000

0

9,650,96318,144,266

232,0558,468,961

10,924,5141,114,542

236,470

53,753584,236 873,365 812,058 48,825,524

(571,978) 84,851 2,596 846,160 1 ,437,344

00

1,061,5780

000

(1,034,250)

3,000,000313,200

6,681,662(5,756,965)

1,061,578 00

00

0

00

00

0

(1,034,250) 4,237,897

489,600 84,851 2,596 (188,090) 5,675,241

417,588 146,673 247,798 1,885,886 19,466,175$907,188 $231,524 $250,394

69

$1,697,796 $25,141,416


MASS TRANSITSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $4,737,829 $4,737,829 $4,602,983 ($134,846) Charges for services 1,977,792 1,153,559 874,102 (279,457) Investment income 5,000 5,000 4,719 (281) Miscellaneous 3,778 3,778 66,642 62,864 Total revenues 6,724,399 5,900,166 5,548,446 (351,720)

Expenditures: Current: Transportation 7,855,972 7,416,320 6,783,538 632,782 Debt service Interest and fiscal charges 0 0 2,662 (2,662) Total expenditures 7,855,972 7,416,320 6,786,200 630,120

Excess (deficiency) of revenue over (under) expenditures (1,131,573) (1,516,154) (1,237,754) 278,400

Other financing sources (uses): Transfers in 1,200,262 1,200,262 1,200,262 0 Total other financing sources (uses) 1,200,262 1,200,262 1,200,262 0

Net change in fund balances 68,689 (315,892) (37,492) 278,400

Fund balances at beginning of year (68,689) 315,892 569,848 253,956Fund balances (deficit) at end of year $0 $0 $532,356 $532,356

70


MASS TRANSITSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Intergovernmental $4,737,829 $4,737,829 $4,602,983 ($134,846)Charges for services 1,977,792 1,153,559 874,102 (279,457)Investment income 5,000 5,000 4,719 (281)Miscellaneous 3,778 3,778 66,642 62,864

Total revenues 6,724,399 5,900,166 5,548,446 (351,720)

Expenditures:Current:Transportation 7,855,972 7,416,320 6,783,538 632,782

Debt serviceInterest and fiscal charges 0 0 2,662 (2,662)Total expenditures 7,855,972 7,416,320 6,786,200 630,120

Excess (deficiency) of revenue over (under)expenditures (1,131,573) (1,516,154) (1,237,754) 278,400

Other financing sources (uses):Transfers in 1,200,262 1,200,262 1,200,262 0

Total other financing sources (uses) 1,200,262 1,200,262 1,200,262 0

Net change in fund balances 68,689 (315,892) (37,492) 278,400

Fund balances at beginning of year (68,689) 315,892 569,848 253,956Fund balances (deficit) at end of year $0 $0 $532,356 $532,356

70


GRANT PROJECTSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $19,595,996 $24,886,611 $13,347,972 ($11,538,639) Charges for services 18,000 18,000 72,618 54,618 Investment income 45,400 45,480 63,417 17,937 Miscellaneous 111,730 75,865 370,569 294,704 Total revenues 19,771,126 25,025,956 13,854,576 (11,171,380)

Expenditures: Current: General government 497,856 511,290 294,589 216,701 Public safety 879,852 3,221,969 2,252,912 969,057 Physical environment 1,035,527 1,652,688 231,100 1,421,588 Transportation 210,000 210,000 0 210,000 Economic environment 16,904,853 18,922,693 7,396,126 11,526,567 Human services 771,509 2,103,065 1,114,542 988,523 Culture and recreation 300,513 1,185,136 169,990 1,015,146 Debt service Interest and fiscal charges 0 0 41 (41) Total expenditures 20,600,110 27,806,841 11,459,300 16,347,541

Excess (deficiency) of revenue over (under) expenditures (828,984) (2,780,885) 2,395,276 5,176,161

Other financing sources (uses): Transfers in 17,957 48,957 17,957 (31,000) Transfers out (120,000) (266,000) (266,000) 0 Total other financing sources (uses) (102,043) (217,043) (248,043) (31,000)

Net change in fund balances (931,027) (2,997,928) 2,147,233 5,145,161

Fund balances at beginning of year 931,027 2,997,928 3,731,115 733,187Fund balances (deficit) at end of year $0 $0 $5,878,348 $5,878,348

71


GRANT PROJECTSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesInvestment incomeMiscellaneous

Total revenues



Debt serviceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Transfers inTransfers out




OriginalBudget

$19,595,99618,00045,400

111,73019,771,126

497,856879,852

1,035,527210,000

16,904,853771,509300,513

020,600,110

(828,984)

17,957(120,000)(102,043)

(931,027)

931,027$0

FinalBudget

$24,886,61118,00045,48075,865

25,025,956

511,2903,221,9691,652,688

210,00018,922,6932,103,0651,185,136

027,806,841

(2,780,885)

48,957(266,000)(217,043)

(2,997,928)

2,997,928$0

71

Actual

$13,347,97272,61863,417

370,56913,854,576

294,5892,252,912

231,1000

7,396,1261,114,542

169,990

4111,459,300

2,395,276

17,957(266,000)(248,043)

2,147,233

3,731,115$5,878,348


Positive(Negative)

($11,538,639)54,61817,937

294,704(11,171,380)

216,701969,057

1,421,588210,000

11,526,567988,523

1,015,146

(41)16,347,541

5,176,161

(31,000)0

(31,000)

5,145,161

733,187$5,878,348


TOURIST PROMOTION FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $4,229,496 $4,229,496 $4,767,723 $538,227 Investment income 11,020 11,020 62,862 51,842 Miscellaneous 0 0 247 247 Total revenues 4,240,516 4,240,516 4,830,832 590,316

Expenditures: Current: Economic environment 4,583,264 5,488,373 3,528,388 1,959,985 Culture and recreation 1,400,000 1,400,000 44,364 1,355,636 Total expenditures 5,983,264 6,888,373 3,572,752 3,315,621

Excess (deficiency) of revenue over (under) expenditures (1,742,748) (2,647,857) 1,258,080 3,905,937

Other financing sources (uses): Transfers out (1,339,936) (1,339,936) (1,387,157) (47,221) Total other financing sources (uses) (1,339,936) (1,339,936) (1,387,157) (47,221)

Net change in fund balances (3,082,684) (3,987,793) (129,077) 3,858,716

Fund balances at beginning of year 3,082,684 3,987,793 4,674,530 686,737Fund balances (deficit) at end of year $0 $0 $4,545,453 $4,545,453

72


TOURIST PROMOTION FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesInvestment incomeMiscellaneous

Total revenues


Economic environmentCulture and recreation

Total expenditures


Other financing sources (uses):Transfers out




OriginalBudget

$4,229,49611,020

04,240,516

4,583,2641,400,0005,983,264

(1,742,748)

(1,339,936)(1,339,936)

(3,082,684)

3,082,684$0

FinalBudget

$4,229,49611,020

04,240,516

5,488,3731,400,0006,888,373

(2,647,857)

(1,339,936)(1,339,936)

(3,987,793)

3,987,793$0

Actual

$4,767,72362,862

2474,830,832

3,528,38844,364

3,572,752

1,258,080

(1,387,157)(1,387,157)

(129,077)

4,674,530$4,545,453

72


Positive(Negative)

$538,22751,842

247590,316

1,959,9851,355,6363,315,621

3,905,937

(47,221)(47,221)

3,858,716

686,737$4,545,453


PUBLIC SAFETY PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $219,300 $219,300 $355,460 $136,160 Charges for services 2,352,488 2,855,582 3,086,812 231,230 Fines and forfeitures 2,000 311,243 341,148 29,905 Investment income 111,250 111,250 153,441 42,191 Special assessments 10,344,567 10,344,567 10,209,635 (134,932) Miscellaneous 127,740 127,740 15,606 (112,134) Total revenues 13,157,345 13,969,682 14,162,102 192,420

Expenditures: Current: General government 158,139 894,306 231,712 662,594 Public safety 14,688,942 18,307,782 12,546,982 5,760,800 Human services 124,156 246,515 0 246,515 Debt service Interest and fiscal charges 0 51,050 51,050 0 Total expenditures 14,971,237 19,499,653 12,829,744 6,669,909


Other financing sources (uses): Note proceeds 0 3,000,000 3,000,000 0 Transfers in 2,650 375,347 375,347 0 Transfers out (963,985) (1,103,640) (1,101,330) 2,310 Total other financing sources (uses) (961,335) 2,271,707 2,274,017 2,310



73


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 services

Debt serviceInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Note proceedsTransfers inTransfers out




OriginalBudget

FinalBudget


PositiveActual (Negative)

$219,3002,352,488

2,000111,250

10,344,567127,740

$219,3002,855,582

311,243111,250

10,344,567127,740

$355,460 $136,1603,086,812 231,230

341,148 29,905153,441 42,191

10,209,635 (134,932)15,606 (112,134)

13,157,345 13,969,682 14,162,102 192,420

158,13914,688,942

124,156

0

894,30618,307,782

246,515

51 ,050

231,712 662,59412,546,982 5,760,800

0 246,515

51,050 014,971,237 19,499,653 12,829,744 6,669,909

(1,813,892) (5,529,971) 1,332,358 6,862,329

02,650

(963,985)

3,000,000375,347

(1,103,640)

3,000,000 0375,347 0

(1,101,330) 2,310(961,335) 2,271,707 2,274,017 2,310

(2,775,227) (3,258,264) 3,606,375 6,864,639

2,775,227 3,258,264 3,935,560 677,296$0 $0

73

$7,541,935 $7,541,935


BOB SIKES TOLL FACILITIESSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $2,799,235 $2,799,235 $3,225,958 $426,723 Investment income 15,000 15,000 38,973 23,973 Miscellaneous 1,662,046 0 7,247 7,247 Total revenues 4,476,281 2,814,235 3,272,178 457,943

Expenditures: Current: General government 2,334,621 3,417,031 1,417,342 1,999,689 Total expenditures 2,334,621 3,417,031 1,417,342 1,999,689

Excess (deficiency) of revenue over (under) expenditures 2,141,660 (602,796) 1,854,836 2,457,632

Other financing sources (uses): Transfers out (2,001,698) (2,001,698) (1,968,228) 33,470 Total other financing sources (uses) (2,001,698) (2,001,698) (1,968,228) 33,470

Net change in fund balances 139,962 (2,604,494) (113,392) 2,491,102

Fund balances at beginning of year (139,962) 2,604,494 2,744,456 139,962Fund balances (deficit) at end of year $0 $0 $2,631,064 $2,631,064

74


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






OriginalBudget

$2,799,23515,000

1,662,0464,476,281

FinalBudget

$2,799,23515,000

02,814,235

Actual

$3,225,95838,973

7,2473,272,178


Positive(Negative)

$426,72323,973

7,247457,943

2,334,621 3,417,031 1,417,342 1,999,6892,334,621

2,141,660

(2,001,698)(2,001,698)

139,962

(139,962)$0

3,417,031

(602,796)

(2,001,698)(2,001,698)

(2,604,494)

2,604,494$0

1,417,342

1,854,836

(1,968,228)(1,968,228)

(113,392)

2,744,456$2,631,064

74

1,999,689

2,457,632

33,47033,470

2,491,102

139,962$2,631,064


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Charges for services $233,000 $233,000 $258,195 $25,195 Investment income 7,000 7,000 4,992 (2,008) Total revenues 240,000 240,000 263,187 23,187

Expenditures: Current: General government 240,000 240,000 164,066 75,934 Total expenditures 240,000 240,000 164,066 75,934

Excess (deficiency) of revenue over (under) expenditures 0 0 99,121 99,121

Net change in fund balances 0 0 99,121 99,121

Fund balances at beginning of year 0 0 354,562 354,562Fund balances (deficit) at end of year $0 $0 $453,683 $453,683

75


CLERK'S PUBLIC RECORDS MODERNIZATION TRUSTSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:Charges for servicesInvestment income

Total revenues


General governmentTotal expenditures




OriginalBudget

FinalBudget Actual


Positive(Negative)

$233,0007,000

$233,0007,000

$258,1954,992

$25,195(2,008)

240,000 240,000 263,187 23,187

240,000 240,000 164,066 75,934240,000 240,000 164,066 75,934

99,121 99,121

99,121 99,121

354,562 354,562

75

$453,683 $453,683


CLERK'S COURT FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $0 308,523$ 308,523$ Charges for services 2,424,158 2,962,900 2,227,658 ($735,242) Investment income 56,023 56,023 60,246 4,223 Miscellaneous 23,443 28,943 22,873 (6,070) Total revenues 2,503,624 3,047,866 2,619,300 (428,566)

Expenditures: Current: General government 7,186,894 7,399,165 6,959,018 440,147 Interest and fiscal charges 7,186,894 7,399,165 6,959,018 440,147 Total expenditures

Excess (deficiency) of revenue over (under) (4,683,270) (4,351,299) (4,339,718) 11,581 expenditures

Other financing sources (uses): Clerk of court trust fund revenue 0 0 313,200 313,200 Transfers in 4,683,270 4,351,299 4,026,518 (324,781) Total other financing sources (uses) 4,683,270 4,351,299 4,339,718 (11,581)

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

76


CLERK'S COURT FUNDSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesInvestment incomeMiscellaneous

Total revenues


General governmentInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Clerk of court trust fund revenueTransfers in




OriginalBudget

$02,424,158

56,02323,443

FinalBudget Actual

$0 $ 308,5232,962,900

56,02328,943

2,227,65860,24622,873


Positive(Negative)

:3 308,523($735,242)

4,223(6,070)

2,503,624 3,047,866 2,619,300 (428,566)

7,186,894 7,399,165 6,959,018 440,1477,186,894 7,399,165 6,959,018 440,147

(4,683,270) (4,351,299) (4,339,718) 11,581

04,683,270

04,351,299

313,2004,026,518

313,200(324,781)

4,683,270 4,351,299 4,339,718 (11,581)

0 0 0 0

0 0 0 0$0 $0

76

$0 $0


SHERIFF'S PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $2,330,592 $2,129,273 ($201,319) Charges for services 0 123,751 75,711 (48,040) Fines and forfeitures 0 337,971 329,657 (8,314) Investment income 0 3,950 4,029 79 Miscellaneous 0 440,004 519,218 79,214 Total revenues 0 3,236,268 3,057,888 (178,380)

Expenditures: Current: Public safety 0 3,531,336 3,344,372 186,964 Total expenditures 0 3,531,336 3,344,372 186,964

Excess (deficiency) of revenue over (under) expenditures 0 (295,068) (286,484) 8,584

Net change in fund balances 0 (295,068) (286,484) 8,584

Fund balances at beginning of year 0 758,159 758,159 0Fund balances (deficit) at end of year $0 $463,091 $471,675 $8,584

77


SHERIFF'S PROGRAMSSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalCharges for servicesFines and forfeituresInvestment incomeMiscellaneous

Total revenues


Public safetyTotal expenditures




OriginalBudget

FinalBudget Actual


Positive(Negative)

35 $2,330,592123,751337,971

3,950440,004

$2,129,27375,711

329,6574,029

519,218

($201,319)(48,040)

(8,314)79

79,214

OO

OO

OO

3,236,268 3,057,888 (178,380)

3,531,336 3,344,372 186,9643,531,336 3,344,372 186,964

(295,068) (286,484) 8,584

(295,068) (286,484) 8,584

758,159 758,159 0$463,091

77

$471,675 $8,584


COMMUNITY REDEVELOPMENT AGENCYSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Investment income $0 $0 $9,933 $9,933 Miscellaneous 0 0 2,325 2,325 Total revenues 0 0 12,258 12,258

Expenditures: Current: General government 768,020 1,325,756 584,236 741,520 Total expenditures 768,020 1,325,756 584,236 741,520

Excess (deficiency) of revenue over (under) expenditures (768,020) (1,325,756) (571,978) 753,778

Other financing sources (uses): Transfers in 698,239 1,061,578 1,061,578 0 Total other financing sources (uses) 698,239 1,061,578 1,061,578 0

Net change in fund balances (69,781) (264,178) 489,600 753,778

Fund balances at beginning of year 69,781 264,178 417,588 153,410Fund balances (deficit) at end of year $0 $0 $907,188 $907,188

78


COMMUNITY REDEVELOPMENT AGENCYSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Investment income $0 $0 $9,933 $9,933Miscellaneous 0 0 2,325 2,325

Total revenues 0 0 12,258 12,258


General government 768,020 1,325,756 584,236 741,520Total expenditures 768,020 1,325,756 584,236 741,520

Excess (deficiency) of revenue over (under)expenditures (768,020) (1,325,756) (571,978) 753,778

Other financing sources (uses):Transfers in 698,239 1,061,578 1,061,578 0

Total other financing sources (uses) 698,239 1,061,578 1,061,578 0

Net change in fund balances (69,781) (264,178) 489,600 753,778

Fund balances at beginning of year 69,781 264,178 417,588 153,410Fund balances (deficit) at end of year $0 $0 $907,188 $907,188

78


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 26,500 26,500 113,725 87,225 Total revenues 626,500 626,500 713,725 87,225

Expenditures: Debt service Principal retirement 8,527,333 8,804,646 9,712,562 (907,916) Interest and fiscal charges 7,745,503 7,881,685 7,240,981 640,704 Total expenditures 16,272,836 16,686,331 16,953,543 (267,212)

Excess (deficiency) of revenue over (under) expenditures (15,646,336) (16,059,831) (16,239,818) (179,987)

Other financing sources (uses): Transfers in 16,677,958 17,091,453 16,571,259 (520,194) Total other financing sources (uses) 16,677,958 17,091,453 16,571,259 (520,194)

Net change in fund balances 1,031,622 1,031,622 331,441 (700,181)

Fund balances at beginning of year (1,031,622) (1,031,622) 8,186,593 9,218,215Fund balances (deficit) at end of year $0 $0 $8,518,034 $8,518,034

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 26,500 26,500 113,725 87,225

Total revenues 626,500 626,500 713,725 87,225

Expenditures:Debt service

Principal retirement 8,527,333 8,804,646 9,712,562 (907,916)Interest and fiscal charges 7,745,503 7,881,685 7,240,981 640,704Total expenditures 16,272,836 16,686,331 16,953,543 (267,212)

Excess (deficiency) of revenue over (under)expenditures (15,646,336) (16,059,831) (16,239,818) (179,987)

Other financing sources (uses):Transfers in 16,677,958 17,091,453 16,571,259 (520,194)

Total other financing sources (uses) 16,677,958 17,091,453 16,571,259 (520,194)

Net change in fund balances 1,031,622 1,031,622 331,441 (700,181)

Fund balances at beginning of year (1 ,031,622) (1,031,622) 8,186,593 9,218,215Fund balances (deficit) at end of year $0 $0 $8,518,034 $8,518,034

79


CAPITAL IMPROVEMENT PROGRAMSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $0 $3,050,000 $0 ($3,050,000) Investment income 200,000 200,000 761,121 561,121 Miscellaneous 0 0 1,678 1,678 Total revenues 200,000 3,250,000 762,799 (2,487,201)

Expenditures: Capital improvements 39,875,364 45,244,211 17,296,815 27,947,396 Debt service Principal retirement 66,938 23,467 0 23,467 Interest and fiscal charges 0 23,486 21,112 2,374 Total expenditures 39,942,302 45,291,164 17,317,927 27,973,237

Excess (deficiency) of revenue over (under) expenditures (39,742,302) (42,041,164) (16,555,128) 25,486,036

Other financing sources (uses): Capital lease(s) issued 0 2,900,000 2,900,000 0 Transfers in 238,565 288,565 288,565 0 Transfers out 0 (81,844) (81,844) 0 Total other financing sources (uses) 238,565 3,106,721 3,106,721 0

Net change in fund balances (39,503,737) (38,934,443) (13,448,407) 25,486,036

Fund balances at beginning of year 39,503,737 38,934,443 38,800,295 (134,148)Fund balances (deficit) at end of year $0 $0 $25,351,888 $25,351,888

80


CAPITAL IMPROVEMENT PROGRAMSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment incomeMiscellaneous

Total revenues

Expenditures:Capital improvementsDebt service

Principal retirementInterest and fiscal chargesTotal expenditures


Other financing sources (uses):Capital Iease(s) issuedTransfers inTransfers out




OriginalBudget

FinalBudget Actual


Positive(Negative)

$0200,000

0

$3,050,000200,000

0

$0761,121

1,678

($3,050,000)561,121

1,678200,000 3,250,000 762,799 (2,487,201)

39,875,364

66,9380

45,244,211

23,46723,486

17,296,815

021,112

27,947,396

23,4672,374

39,942,302 45,291,164 17,317,927 27,973,237

(39,742,302) (42,041,164) (16,555,128) 25,486,036

0238,565

0

2,900,000288,565(81,844)

2,900,000288,565(81,844)

238,565 3,106,721 3,106,721 00

00

(39,503,737) (38,934,443) (13,448,407) 25,486,036

39,503,737 38,934,443 38,800,295 (134,148)$0 $0 $25,351,888 $25,351,888


FEDERAL TRANSIT ADMINISTRATIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Intergovernmental $822,296 $1,392,789 $873,365 ($519,424) Investment income 0 0 2,322 2,322 Miscellaneous 0 0 274 274 Total revenues 822,296 1,392,789 875,961 (516,828)

Expenditures: Capital improvements 822,296 1,392,789 873,365 519,424 Total expenditures 822,296 1,392,789 873,365 519,424

Excess (deficiency) of revenue over (under) expenditures 0 0 2,596 2,596

Net change in fund balances 0 0 2,596 2,596

Fund balances at beginning of year 0 0 247,798 247,798Fund balances (deficit) at end of year $0 $0 $250,394 $250,394

81


FEDERAL TRANSIT ADMINISTRATIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:IntergovernmentalInvestment incomeMiscellaneous

Total revenues

Expenditures:Capital improvements

Total expenditures




OriginalBudget

FinalBudget Actual


Positive(Negative)

$822,29600

$1,392,78900

$873,3652,322

274

($519,424)2,322

274822,296 1,392,789 875,961 (516,828)

822,296 1,392,789 873,365 519,424822,296 1,392,789 873,365 519,424

2,596 2,596

2,596 2,596

247,798 247,798

81

$250,394 $250,394


ROAD CONSTRUCTIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $1,644,322 $1,644,322 $1,635,803 ($8,519) Investment income 50,000 50,000 22,415 (27,585) Total revenues 1,694,322 1,694,322 1,658,218 (36,104)

Expenditures: Capital improvements 2,596,799 2,461,012 812,058 1,648,954 Total expenditures 2,596,799 2,461,012 812,058 1,648,954

Excess (deficiency) of revenue over (under) expenditures (902,477) (766,690) 846,160 1,612,850

Other financing sources (uses): Transfers out (984,250) (1,034,250) (1,034,250) 0 Total other financing sources (uses) (984,250) (1,034,250) (1,034,250) 0

Net change in fund balances (1,886,727) (1,800,940) (188,090) 1,612,850


82


ROAD CONSTRUCTIONSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL


Revenues:TaxesInvestment income

Total revenues

Expenditures:Capital improvements

Total expenditures






OriginalBudget

FinalBudget Actual


Positive(Negative)

$1,644,32250,000

$1,644,32250,000

$1,635,80322,415

($8,519)(27,585)

1,694,322 1,694,322 1,658,218 (36,104)

2,596,799 2,461,012 812,058 1,648,9542,596,799 2,461,012 812,058 1,648,954

(902,477) (766,690) 846,160 1,612,850

(984,250) (1,034,250) (1,034,250) 0(984,250) (1,034,250) (1,034,250) 0

(1,886,727) (1,800,940) (188,090) 1,612,850

1,886,727 1,800,940 1,885,886 84,946$0 $0

82

$1,697,796 $1,697,796


LOCAL OPTION SALES TAXSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues: Taxes $29,039,098 $29,039,098 $30,496,142 $1,457,044 Intergovernmental 0 404,131 1,137,595 733,464 Charges for services 0 0 6,856 6,856 Investment income 500,068 500,068 542,106 42,038 Miscellaneous 0 20,000 653,788 633,788 Total revenues 29,539,166 29,963,297 32,836,487 2,873,190

Expenditures: Capital improvements 44,955,671 56,732,666 14,344,902 42,387,764 Debt service Principal retirement 383,680 511,614 0 511,614 Interest and fiscal charges 950,000 100,954 100,954 0 Total expenditures 46,289,351 57,345,234 14,445,856 42,899,378


Other financing sources (uses): Transfers out (9,150,757) (9,150,757) (8,665,715) 485,042 Total other financing sources (uses) (9,150,757) (9,150,757) (8,665,715) 485,042



83


LOCAL OPTION SALES TAXSCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES -BUDGET TO ACTUAL



Revenues:Taxes $29,039,098 $29,039,098 $30,496,142 $1,457,044Intergovernmental 0 404,131 1,137,595 733,464Charges for services 0 0 6,856 6,856Investment income 500,068 500,068 542,106 42,038Miscellaneous 0 20,000 653,788 633,788

Total revenues 29,539,166 29,963,297 32,836,487 2,873,190

Expenditures:Capital improvements 44,955,671 56,732,666 14,344,902 42,387,764Debt service

Principal retirement 383,680 511,614 0 511,614Interest and fiscal charges 950,000 100,954 100,954 0Total expenditures 46,289,351 57,345,234 14,445,856 42,899,378

Excess (deficiency) of revenue over (under)expenditures (16,750,185) (27,381,937) 18,390,631 45,772,568

Other financing sources (uses):Transfers out (9,150,757) (9,150,757) (8,665,715) 485,042

Total other financing sources (uses) (9,150,757) (9,150,757) (8,665,715) 485,042



83

NON-MAJOR PROPRIETARY 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 PROPRIETARY FUNDS

Inspection Fund - to account for building inspection services provided to the residents of Escambia County. Allactivities 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 PROPRIETARY FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2004

ASSETS Inspection Ambulance TotalsCurrent assets: Cash and cash equivalents $500 $150 $650 Equity in pooled cash and investments 2,173,887 2,469,188 4,643,075 Receivables (net of allowance for uncollectibles) 264 2,746,586 2,746,850 Inventory 0 136,693 136,693 Restricted cash and cash equivalents 152,433 0 152,433 Total current assets 2,327,084 5,352,617 7,679,701

Noncurrent assets: Capital assets: Land and other non-depreciable assets 0 6,443 6,443 Capital assets (net of depreciation) 178,900 2,481,733 2,660,633 Total noncurrent assets 178,900 2,488,176 2,667,076 Total assets 2,505,984 7,840,793 10,346,777

LIABILITIESCurrent liabilities: Vouchers payable 34,166 37,844 72,010 Salaries, benefits and compensated absences payable 93,714 150,759 244,473 Due to other governmental units 1,503 3,938 5,441 Payable from restricted assets 152,433 0 152,433 Other current liabilities 27,707 0 27,707 Total current liabilities 309,523 192,541 502,064

Non-current liabilities: Compensated absences 431,315 406,077 837,392 Total non-current liabilities 431,315 406,077 837,392 Total liabilities 740,838 598,618 1,339,456

NET ASSETSInvested in capital assets, net of related debt 178,900 2,488,176 2,667,076Unrestricted 1,586,246 4,753,999 6,340,245 Total net assets $1,765,146 $7,242,175 $9,007,321

84


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF NET ASSETS

SEPTEMBER 30, 2004


Cash and cash equivalentsEquity in pooled cash and investmentsReceivables (net of allowance for uncollectibles)InventoryRestricted 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, benefits and compensated absences payableDue to other governmental unitsPayable from restricted assetsOther current liabilities

Total current liabilities

Non-current liabilities:Compensated absencesTotal non-current liabilities

Total liabilities

NET ASSETSInvested in capital assets, net of related debtUnrestricted

Total net assets

Inspection

$5002,173,887

2640

152,433

Ambulance

$1502,469,1882,746,586

136,6930

Totals

$6504,643,0752,746,850

136,693152,433

2,327,084 5,352,617 7,679,701

0178,900

6,4432,481,733

6,4432,660,633

178,900 2,488,176 2,667,0762,505,984 7,840,793 10,346,777

34,16693,714

1,503152,43327,707

37,844150,759

3,93800

72,010244,473

5,441152,43327,707

309,523 192,541 502,064

431,315 406,077 837,392431,315 406,077 837,392740,838 598,618 1,339,456

178,9001,586,246

2,488,1764,753,999

2,667,0766,340,245

84

$1,765,146 $7,242,175 $9,007,321


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS

YEAR ENDED SEPTEMBER 30, 2004 Inspection Ambulance Totals

Operating revenues: Licenses and permits $3,570,275 $0 $3,570,275 Charges for services 244,302 11,583,884 11,828,186 Fines and forfeitures 14,640 0 14,640 Miscellaneous income 17,167 222,420 239,587 Total operating revenues 3,846,384 11,806,304 15,652,688

Operating expenses: Personal services 2,622,941 5,527,300 8,150,241 Contractual services 37,706 303,436 341,142 Materials and supplies 50,246 428,340 478,586 Travel and vehicle costs 103,896 9,799 113,695 Depreciation 58,739 654,793 713,532 Bad debts 81 3,977,243 3,977,324 Memberships, dues and subscriptions 4,583 17,121 21,704 Insurance and bonds 8,653 93,796 102,449 Communications and freight services 42,366 48,401 90,767 Utilities 20,020 1,194 21,214 Maintenance 14,988 323,588 338,576 Rentals and leases 147,263 13,953 161,216 Advertising and promotion 98 1,403 1,501 Miscellaneous 194,449 360,270 554,719 Total operating expenses 3,306,029 11,760,637 15,066,666 Operating income (loss) 540,355 45,667 586,022

Non-operating revenues (expenses): Interest income 15,459 27,143 42,602 Gain (loss) on disposal of assets (4,527) (70,746) (75,273) Other income 0 408 408 Total non-operating revenues (expenses) 10,932 (43,195) (32,263)

Income (loss) before contributions and transfers 551,287 2,472 553,759

Capital contributions 13,375 880,638 894,013Transfers out 0 (155,000) (155,000) Total other financing sources (uses) 13,375 725,638 739,013

Change in net assets 564,662 728,110 1,292,772

Net assets - beginning 1,200,484 6,514,065 7,714,549Net assets - ending $1,765,146 $7,242,175 $9,007,321

85


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF REVENUES, EXPENSESAND CHANGES IN NET ASSETS


Operating revenues:Licenses and permitsCharges for servicesFines and forfeituresMiscellaneous income

Total operating revenues

Operating expenses:Personal servicesContractual servicesMaterials and suppliesTravel and vehicle costsDepreciationBad debtsMemberships, dues and subscriptionsInsurance and bondsCommunications and freight servicesUtilitiesMaintenanceRentals and leasesAdvertising and promotionMiscellaneous

Total operating expensesOperating income (loss)

Non-operating revenues (expenses):Interest incomeGain (loss) on disposal of assetsOther income

Total non-operating revenues (expenses)

Income (loss) before contributions and transfers

Capital contributionsTransfers out


Change in net assets

Net assets - beginningNet assets - ending

Inspection

$3,570,275244,302

14,64017,167

Ambulance

$01 1 ,583,884

0222,420

Totals

$3,570,27511,828,186

14,640239,587

3,846,384 11,806,304 15,652,688

2,622,94137,70650,246

103,89658,739

814,5838,653

42,36620,02014,988

147,26398

194,449

5,527,300303,436428,340

9,799654,793

3,977,24317,12193,79648,401

1,194323,588

13,9531,403

360,270

8,150,241341,142478,586113,695713,532

3,977,32421,704

102,44990,76721,214

338,576161,216

1,501554,719

3,306,029 11,760,637 15,066,666540,355 45,667 586,022

15,459(4,527)

0

27,143(70,746)

408

42,602(75,273)

40810,932 (43,195) (32,263)

551,287 2,472 553,759

13,3750

880,638(155,000)

894,013(155,000)

13,375 725,638 739,013

564,662 728,110 1,292,772

1,200,484 6,514,065 7,714,549

85

$1,765,146 $7,242,175 $9,007,321


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

YEAR ENDED SEPTEMBER 30, 2004Inspection Ambulance Totals

Cash flows from operating activities: Cash received from customers $3,894,468 $11,409,338 $15,303,806 Cash payments to suppliers for goods and services (603,784) (5,570,156) (6,173,940) Cash payments to employees for services (2,594,839) (5,461,400) (8,056,239) Other non-operating revenues (expenses) 0 222,828 222,828 Net cash provided by (used in) operating activities 695,845 600,610 1,296,455

Cash flows from noncapital financing activities: Transfers out 0 (155,000) (155,000) Net cash provided by (used in) noncapital financing activities 0 (155,000) (155,000)

Cash flows from capital and related financing activities: Acquisition and construction of capital assets (117,636) (72,710) (190,346) Net cash used in capital and related financing activities (117,636) (72,710) (190,346)

Cash flow from investing activities: Interest on investments 15,459 27,143 42,602 Net cash provided by investing activities 15,459 27,143 42,602

Net increase (decrease) in cash & cash equivalents 593,668 400,043 993,711

Cash and cash equivalents at beginning of year 1,733,152 2,069,295 3,802,447Cash and cash equivalents at end of year $2,326,820 $2,469,338 $4,796,158

Non-cash investing, capital and financing activities: Capital contributions $13,375 $880,638 $894,013

(Continued)

86




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)


Cash flows from noncapital financing activities:Transfers out

Net cash provided by (used in) noncapital financing activities

Cash flows from capital and related financing activities:Acquisition and construction of capital assets

Net cash used in capital and related financing activities

Cash flow from investing activities:Interest on investments

Net 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 activities:Capital contributions

86

Inspection

$3,894,468(603,784)

(2,594,839)0

Ambulance

$11,409,338(5,570,156)(5,461,400)

222,828

Totals

$15,303,806(6,173,940)(8,056,239)

222,828695,845 600,610 1,296,455

(155,000) (155,000)(155,000) (155,000)

(117,636) (72,710) (190,346)(117,636) (72,710) (190,346)

15,459 27,143 42,60215,459 27,143 42,602

593,668 400,043 993,711

1,733,152 2,069,295 3,802,447$2,326,820

$13,375

$2,469,338

$880,638

$4,796,158

$894,013(Continued)


NON-MAJOR PROPRIETARY FUNDSCOMBINING STATEMENT OF CASH FLOWSINCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (Continued)

YEAR ENDED SEPTEMBER 30, 2004Inspection Ambulance Totals

Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet: Current assets: Cash and cash equivalents $500 $150 $650 Equity in pooled cash and investments 2,173,887 2,469,188 4,643,075 Restricted assets: Equity in pooled cash and investments 152,433 0 152,433 Total cash and cash equivalents at end of year $2,326,820 $2,469,338 $4,796,158

Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss) $540,355 $45,667 $586,022 Other non-operating revenues 0 408 408 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 58,739 654,793 713,532 Provision for uncollectible accounts 81 3,977,243 3,977,324 (Increase) decrease in assets: Accounts receivable 432 (4,151,999) (4,151,567) Inventory 0 4,965 4,965 Prepaid expense 0 210 210 Increase (decrease) in liabilities: Vouchers payable 21,791 4,107 25,898 Salaries and benefits payable 23,041 25,684 48,725 Compensated absences 5,061 40,216 45,277 Deposits 47,571 0 47,571 Due to other governments (1,226) (684) (1,910)

Net cash provided by (used in) operating activities $695,845 $600,610 $1,296,455

87



(Continued)


Reconciliation of cash and cash equivalents at end of year to Balance Sheet:Balance Sheet:Current assets:

Cash and cash equivalentsEquity in pooled cash and investments

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 receivableInventoryPrepaid expense

Increase (decrease) in liabilities:Vouchers payableSalaries and benefits payableCompensated absencesDepositsDue to other governments


87

Inspection

$5002,173,887

152,433

Ambulance

$1502,469,188

0

Totals

$6504,643,075

152,433$2,326,820

$540,3550

58,73981

432

21,79123,041

5,06147,571(1,226)

$2,469,338

$45,667408

654,7933,977,243

(4,151,999)4,965

210

4,10725,68440,216

0(684)

$4,796,158

$586,022408

713,5323,977,324

(4,151,567)4,965

210

25,89848,72545,27747,571(1,910)

$695,845 $600,610 $1,296,455

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 court pendingthe outcome of civil suits; to account for the collection and disbursement of deposits received by the Clerk fromthe State and County governments for payment of citizen services; and to account for the collection anddisbursement 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 for the 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 account for 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 appraiser fees, asagent for other governments.


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2004

Clerk Sheriff Tax CollectorGeneral General General

Assets Agency Funds Agency Funds Agency Funds Total

Cash and cash equivalents $4,246,210 $170,225 $3,614,324 $8,030,759Receivables (net of allowance for uncollectibles) 15,692 0 67,081 82,773Due from other funds 0 0 1,329,138 1,329,138Due from other governments 262 0 0 262 Total assets $4,262,164 $170,225 $5,010,543 $9,442,932

Liabilities

Payable to others $175,988 $115,981 $387,008 $678,977Due to other funds 0 16,725 1,505,756 1,522,481Due to other governmental units 857,194 26,235 3,117,779 4,001,208Other current liabilities 3,228,982 11,284 0 3,240,266 Total liabilities $4,262,164 $170,225 $5,010,543 $9,442,932

88


COMBINING STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUNDS

SEPTEMBER 30, 2004

Clerk Sheriff Tax CollectorGeneral General General

Assets Aqencv Funds Aqencv Funds Aqencv Funds Total

Cash and cash equivalents $4,246,210 $170,225 $3,614,324 $8,030,759Receivables (net of allowance for uncollectibles) 15,692 0 67,081 82,773Due from other funds 0 0 1,329,138 1,329,138Due from other governments 262 0 0 262

Total assets $4,262,164 $170,225 $5,010,543 $9,442,932

Liabilities

Payable to others $175,988 $115,981 $387,008 $678,977Due to other funds 0 16,725 1,505,756 1,522,481Due to other governmental units 857,194 26,235 3,117,779 4,001,208Other current liabilities 3,228,982 11,284 0 3,240,266

Total liabilities $4,262,164 $170,225 $5,010,543 $9,442,932

88


STATEMENT OF CHANGES IN ASSETS AND LIABILITIESAGENCY FUNDS


Balance BalanceOctober 1, September 30,

2003 Additions Deductions 2004Clerk of the Circuit Court: Assets: Cash and cash equivalents $2,468,084 $30,743,853 $28,965,727 $4,246,210 Accounts receivable (net of allowance for uncollectibles) 14,758 90,347 89,413 15,692 Due from other governments 508 411 657 262 Total assets $2,483,350 $30,834,611 $29,055,797 $4,262,164

Liabilities: Payable to others $194,101 $10,950,301 $10,968,414 $175,988 Due to other funds 0 142,044 142,044 0 Due to other governmental units 0 2,392,150 1,534,956 857,194 Other current liabilities 2,289,249 17,788,809 16,849,076 3,228,982 Total liabilities $2,483,350 $31,273,304 $29,494,490 $4,262,164

Sheriff: Assets: Cash and cash equivalents $171,530 $3,935,115 $3,936,420 $170,225 Total assets $171,530 $3,935,115 $3,936,420 $170,225

Liabilities: Payable to others $0 $3,547,284 $3,431,303 $115,981 Due to other funds 61,631 3,323 48,229 16,725 Due to other governmental units 2,984 480,139 456,888 26,235 Other current liabilities 106,915 20 95,651 11,284 Total liabilities $171,530 $4,030,766 $4,032,071 $170,225

(Continued)

89




BalanceSeptember 30,

Deductions 2004

BalanceOctober 1,

2003 AdditionsClerk 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

Sheriff:Assets:

Cash and cash equivalentsTotal assets


Total liabilities

$2,468,084

14,758508

$30,743,853

90,347411

$28,965,727

89,413657

$4,246,210

15,692262

$2,483,350

$194,10100

2,289,249

$30,834,611

$10,950,301142,044

2,392,15017,788,809

$29,055,797

$10,968,414142,044

1,534,95616,849,076

$4,262,164

$175,9880

857,1943,228,982

$2,483,350

$171,530

$31,273,304

$3,935,115

$29,494,490

$3,936,420

$4,262,164

$170,225$171,530

$061,631

2,984106,915

$3,935,115

$3,547,2843,323

480,13920

$3,936,420

$3,431,30348,229

456,88895,651

$170,225

$115,98116,72526,23511,284

$171,530

89

$4,030,766 $4,032,071 $170,225(Continued)




Balance BalanceOctober 1, September 30,

2003 Additions Deductions 2004Tax Collector: Assets: Cash and cash equivalents $3,322,110 $444,980,711 $444,688,497 $3,614,324 Accounts receivable (net of allowance for uncollectibles) 44,944 4,106,581 4,084,444 67,081 Due from other funds 432,563 204,636,346 203,739,771 1,329,138 Total assets $3,799,617 $653,723,638 $652,512,712 $5,010,543

Liabilities: Payable to others $695,591 $8,398,758 $8,707,341 $387,008 Due to other funds 459,443 206,729,725 205,683,412 1,505,756 Due to other governmental units 2,644,583 228,656,590 228,183,394 3,117,779 Total liabilities $3,799,617 $443,785,073 $442,574,147 $5,010,543

Total Agency Funds: Assets: Cash and cash equivalents $5,961,724 $479,659,679 $477,590,644 $8,030,759 Accounts receivable (net of allowance for uncollectibles) 59,702 4,196,928 4,173,857 82,773 Due from other funds 432,563 204,636,346 203,739,771 1,329,138 Due from other governmental units 508 411 657 262 Total assets $6,454,497 $688,493,364 $685,504,929 $9,442,932

Liabilities: Payable to others $889,692 $22,896,343 $23,107,058 $678,977 Due to other funds 521,074 206,875,092 205,873,685 1,522,481 Due to other governmental units 2,647,567 231,528,879 230,175,238 4,001,208 Other current liabilities 2,396,164 17,788,829 16,944,727 3,240,266 Total liabilities $6,454,497 $479,089,143 $476,100,708 $9,442,932

90




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

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

2003 Additions Deductions 2004

$3,322,110

44,944432,563

$444,980,711

4,106,581204,636,346

$444,688,497

4,084,444203,739,771

$3,614,324

67,0811,329,138

$3,799,617

$695,591459,443

2,644,583

$653,723,638

$8,398,758206,729,725228,656,590

$652,512,712

$8,707,341205,683,412228,183,394

$5,010,543

$387,0081,505,7563,117,779

$3,799,617

$5,961,724

59,702432,563

508

$443,785,073

$479,659,679

4,196,928204,636,346

411

$442,574,147

$477,590,644

4,173,857203,739,771

657

$5,010,543

$8,030,759

82,7731,329,138

262$6,454,497

$889,692521,074

2,647,5672,396,164

$688,493,364

$22,896,343206,875,092231,528,879

17,788,829

$685,504,929

$23,107,058205,873,685230,175,238

16,944,727

$9,442,932

$678,9771,522,4814,001,2083,240,266

$6,454,497

90

$479,089,143 $476,100,708 $9,442,932

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, differ from 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. 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.

ESCAMBIA COUNTY, FLORIDASEPTEMBER 30, 2004

TABLE 1GOVERNMENT-WIDE EXPENSES BY FUNCTION

2004 2003 2002

General government $18,991,464 $27,824,278 $31,365,853Public safety 129,147,683 105,844,911 92,078,863Physical environment 1,081,449 1,608,537 1,609,876Transportation 48,510,758 52,160,788 48,392,098Economic environment 12,049,668 11,194,640 10,754,806Human services 4,706,530 4,340,688 4,143,983Culture and recreation 4,179,058 4,187,822 5,695,732Court related 11,849,716 4,650,983 4,623,410Interest on long-term debt 7,517,482 8,584,343 5,316,046Solid waste 8,411,321 6,702,610 5,378,050Civic center 5,244,904 5,046,735 4,663,308Industrial park 780,684 507,575 0Other 15,066,666 14,294,176 14,456,263 Total government-wide expenses by function $267,537,383 $246,948,086 $228,478,288

GOVERNMENT-WIDE REVENUESProgram Revenues

Charges for services $76,369,013 $69,115,071 $50,551,257Operating grants and contributions 22,271,680 12,493,780 13,430,633Capital grants and contributions 12,287,617 8,850,924 11,019,953

General Revenues

Property taxes 85,558,122 80,315,156 87,147,301Gasoline taxes 13,510,022 12,913,107 13,158,899Sales tax 49,974,648 48,305,787 46,513,619Other taxes 4,767,723 4,338,875 8,184,340State revenue sharing 7,860,391 7,117,329 7,058,385Interest income 2,833,690 3,034,335 3,020,225Rents and royalties 425,826 417,290 369,497Sale of assets 335,058 178,219 397,725Miscellaneous 5,940,532 2,089,276 2,511,666Capital contributions 6,640,079 2,672,630 483,090Transfers - internal activities 0 0 0Special items: Landfill closure estimates 0 10,367,898 0 Payment to SRIA of bonds issued 0 (32,000,000) 0 Total government-wide revenues $288,774,401 $230,209,677 $243,846,590

Only three years are available due to initial GASB 34 implementation in fiscal year 2002.

91

ESCAMBIA COUNTY, FLORIDASEPTEMBER 30, 2004

TABLE 1GOVERNMENT-WIDE EXPENSES BY FUNCTION

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 taxesState revenue sharingInterest incomeRents and royaltiesSale of assetsMiscellaneousCapital contributionsTransfers - internal activitiesSpecial items:

Landfill closure estimates

2004 2003 2002

$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

$267,537,383

$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

0Payment to SRIA of bonds issued 0Total government-wide revenues

$246,948,086

GOVERNMENT-WIDE REVENUES

$69,115,07112,493,7808,850,924

80,315,15612,913,10748,305,787

4,338,8757,117,3293,034,335

417,290178,219

2,089,2762,672,630

0

10,367,898(32,000,000)

$228,478,288

$50,551,25713,430,63311,019,953

87,147,30113,158,89946,513,619

8,184,3407,058,3853,020,225

369,497397,725

2,511,666483,090

0

00

$288,774,401 $230,209,677 $243,846,590

Only three years are available due to initial GASB 34 implementation in fiscal year 2002.

91

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

1995 $64,157,004 $485,414 $41,520,459 $8,492,067 $4,107,372 $12,319,027 $131,081,3431996 $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 $213,662,702

NOTE: (1) The above amounts include General, Debt Service Fund, and all Special Revenue Funds.

92

TABLE 2


GENERAL GOVERNMENT REVENUE BY SOURCE (1)


(Unaudited)

Fiscalyear Taxes

Licensesand

permitsIntergovernmental

revenue

Charges forservices

Fines andforfeits

Miscellaneousrevenue Total

1995199619971998199920002001200220032004


$64,157,004$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

$485,414$279,527$681,430$633,420$669,1 13$383,474$619,375$438,953$447,824$471,916

$41,520,459$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

92

$8,492,067$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

$4,107,372$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

$12,319,027$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

$131,081,343$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

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

1995 $32,666,905 $48,782,783 $3,151,893 $16,045,640 $6,966,389 $4,951,022 $616,004 $9,320,550 $122,501,1861996 $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 $220,366,932


93

Fiscalyear

Generalgovernment

Publicsafety


GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1)

Physicalenvironment


(Unaudited)

TransportationEconomic

environmentHuman

servicesCulture andrecreation

Debtservice

TABLE 3

Total

1995199619971998199920002001200220032004

$32,666,905$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

$48,782,783$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

$3,151,893$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

$16,045,640$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

$6,966,389$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


93

$4,951,022$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

$616,004$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

$9,320,550$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

$122,501,186$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


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

1995 $51,535,469 $49,326,462 95.71% $205,491 $49,531,953 96.1% $286,875 0.6%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%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does not include the School Board.

94

Fiscalyear

1995199619971998199920002001200220032004

Property taxeslevied

$51,535,469$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


SCHEDULE OF PROPERTY TAXES LEVIED AND COLLECTED

Property taxescollected

$49,326,462$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

Percent (%)collected

95.71%95.46%95.81%96.04%96.17%95.62%95.27%96.36%96.25%94.85%


(Unaudited)

Delinquenttax

collections

$205,491$171,394$179,773$136,922$178,305$328,331$684,398

$0$477,485$671,247

Total taxcollections

$49,531,953$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

Percent oftotal tax

collectionsto tax levy

96.1%95.8%96.1%96.3%96.4%96.1%96.2%96.4%96.8%95.6%

NOTE: (1) Property Tax data includes County wide and Municipal Services Taxing Unit only. Data does notinclude the School Board.

94

Outstandingdelinquent

taxes

$286,875$258,444$256,930$260,741$334,503$507,901$595,133$401,843$414,621

$2,718,907

TABLE 4

Percent ofdelinquenttaxes totax levy

0.6%0.5%0.5%0.5%0.5%0.7%0.8%0.5%0.5%3.0%


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

1995 $5,686,309,150 $8,494,180,430 $1,347,101,120 $1,594,848,070 $17,847,500 $7,051,257,770 $10,106,876,000 69.77%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%

Source: Escambia County Property Appraiser

95

Fiscalyear

1995199619971998199920002001200220032004

Real Property

Assessed value

$5,686,309,150$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

Justvalue

$8,494,180,430$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



ASSESSED AND JUST VALUE OF TAXABLE PROPERTY


(Unaudited)

Personal Property

Assessed value

$1,347,101,120$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

Justvalue

$1 ,594,848,07O$1 ,631,463,54O$1 ,733,169,700$1 ,782,792,320$1 ,864,294,192$1 ,952,344,37O$1 ,870,757,698$1 ,942,601 ,673$2,083,218,610$2,148,921 ,988

95

Centrallyassessed

$17,847,500$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

Total

Assessed value

$7,051 ,257,770$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

Justvalue

$10,106,876,000$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

TABLE 5

Ratio of totalassessed to

total estimated

69.77%70.50%70.74%71.32%71.04%72.80%74.90%74.86%81.68%76.92%

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

1995 8.817 9.814 1.027 5.057 2.0000 0.050 1.265 28.03001996 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 26.3390


96

FiscalYear

1995199619971998199920002001200220032004

EscambiaCounty

8.8178.7898.7568.2608.7568.7568.7568.7568.7568.756

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(PER $1000 0F ASSESSED VALUE)

EscambiaCounty

School Board

9.8149.9199.6169.5659.5569.0119.2498.9868.8878.788




Escambia CountyMunicipal Service

Taxing Unit

1 .0270.4950.4950.4660.4950.7470.7470.7470.7470.747

(Unaudited)

City ofPensacola

5.0575.0575.0575.0575.0575.0575.0575.0575.0575.057

96

City ofPensacolaDowntown

ImprovementBoard

2.00002.00002.00002.00002.00002.00002.00002.00001 .00002.0000

NorthwestFloridaWater

Management

0.0500.0500.0500.0500.0500.0500.0500.0500.0500.050

Town ofCentury

1.2651.1551.1281.0911.0911.0861.0310.9980.9810.941

TABLE 6

TotalCou nty

28.030027.465027.102026.489027.005026.707026.890026.594025.478026.3390

TABLE 7


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2004

(Unaudited)

Direct Debt of Escambia County Non-Self SelfAs of September 30, 2004 Supporting Supporting

Road Improvement Revenue Bonds, Series 1993B, due 2009 $5,160,000 $0Sales Tax Revenue Bonds, Series 2002, due 10/01/2033 89,730,000 0Tourism Development Revenue Bonds, Series 2002, due 10/01/2019 15,860,000 0Capital Improvement Bonds, Series 2002, due 10/01/2032 21,890,000 0Capital Improvement Revenue Note, Series 1997 9,130,000 0Capital Improvement Revenue Note, Series 1998 8,243,000 0Capital Improvement Revenue Note, Series 1999B 1,010,000 0Capital Improvement Revenue Note, Series 1999C 16,000,000 0Capital Improvement Revenue Note, Series 2003 3,000,000 0SunTrust Line of Credit 0 789,575Toll Facility Revolving Trust Fund 385,834 0Obligations under Capital Lease(s) 8,286,825 0Total Escambia County Direct Debt $178,695,659 $789,575

Direct Debt of Escambia County School BoardAs of June 30, 2004

State Board of Education Bonds, 1992A; 1994A; 1995A; 1996A; 1996B; 1997A, 1998A, and 2001B $0 $12,015,000Certificates of Participation 60,780,000 0Obligations under Capital Lease 6,725,619 0Long-Term Notes Payable 4,050,000 0Total Escambia County School Board Direct Debt $71,555,619 $12,015,000

Direct Debt of Escambia County Utilities AuthorityAs of September 30, 2004

Utility System Revenue Bonds, Series 1992B, due 1/1/15 $0 $41,798,485Utility System Revenue Bonds, Series 1996, due 1/1/27 0 15,685,000Sanitation System Improvement and Refunding Revenue Bonds, Series 1998, due 1/1/22 0 13,280,000Utility System Revenue Bonds, Series 1998A, due 1/1/28 0 10,160,000Utility System Refunding Revenue Bonds, Series 1998B, due 1/1/23 0 13,700,000Utility System Revenue Bonds, Series 1998C, due 1/1/11 0 2,885,000Utility System Revenue Bonds, Series 1998D, due 1/1/11 0 25,260,000Utility System Revenue Bonds, Series 1999, due 1/1/29 0 24,480,000Utility System Revenue Bonds, Series 2001, due 1/1/31 0 9,620,000State of Florida Department of Environmental Protection, Revolving Loan, due 9/15/14 0 567,643Utility System Revenue Bonds, Series 2001B, due 1/1/22 0 5,470,000Utility System Revenue Bonds, Series 2003, due 1/1/33 0 23,150,000Total Escambia County Utilities Authority Direct Debt $0 $186,056,128

Notes: (1) Financial data is reported as of the entity's fiscal year ending date.

97


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS

SEPTEMBER 30, 2004

(Unaudited)

Non-SelfSupporting

Direct Debt of Escambia CountyAs of September 30, 2004

TABLE 7

SelfSupporting

$5,160,00089,730,00015,860,00021,890,000

9,130,0008,243,0001,010,000

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 1999BCapital Improvement Revenue Note, Series 1999C 16,000,000Capital Improvement Revenue Note, Series 2003 3,000,000SunTrust Line of Credit 0To“ Facility Revolving Trust Fund 385,834Obligations under Capital Lease(s) 8,286,825

OO

OO

OO

OO

O

789,57500

Total Escambia County Direct Debt $178,695,659

Direct Debt of Escambia County School BoardAs of June 30, 2004

State Board of Education Bonds, 1992A; 1994A; 1995A; 1996A; 1996B;1997A, 1998A, and 2001B $0

Certificates of Participation 60,780,000Obligations under Capital Lease 6,725,619Long-Term Notes Payable 4,050,000

$789,575

$12,015,000000

Total Escambia County School Board Direct Debt $71,555,619

Direct Debt of Escambia County Utilities AuthorityAs of September 30, 2004

Utility System Revenue Bonds, Series 1992B, due 1/1/15Utility System Revenue Bonds, Series 1996, due 1/1/27Sanitation 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 19988, 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 9/15/14Utility System Revenue Bonds, Series 2001B, due 1/1/22Utility System Revenue Bonds, Series 2003, due 1/1/33

$$12,015,000

$41,798,48515,685,00013,280,00010,160,00013,700,0002,885,000

25,260,00024,480,000

9,620,000567,643

5,470,00023,150,000

OO

OO

OO

OO

OO

OO

O

Total Escambia County Utilities Authority Direct Debt $

Notes:(1) Financial data is reported as of the entity's fiscal year ending date.

97

$186,056,128

TABLE 7


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2004

(Unaudited)

Overlapping Long Term Debt of the City of Pensacola Non-Self SelfAs of September 30, 2004 Supporting Supporting

Airport Revenue Bonds, Series 1993, due 10/1/18 $0 $4,270,000Airport Revenue Bonds, Series 1997A, due 10/1/28 0 13,895,000Airport Revenue Bonds, Series 1997B, due 10/1/15 0 5,800,000Airport Revenue Refunding Bonds, Series 1998A, due 10/1/18 0 15,380,000Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07 0 4,755,000Gas System Revenue Refunding Bonds, Series 1999, due 12/1/19 0 8,000,000Gulf Breeze Loan Pool Note, Series 1997, due 12/1/14 2,698,000 0Gulf Breeze Loan Pool Note, Series 1998, due 12/1/14 1,898,000 0Redevelopment Refunding, Series 2004, due 4/1/14 3,271,866 0Sales and Excise Tax Revenue Bonds, Series 1990, due 10/1/05 3,105,660 0Sales and Excise Tax Revenue Bonds, Series 1995, due 10/1/12 95,000 0Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08 8,600,000 0Sales and Excise Tax Revenue Bonds, Series 2004, due 10/1/14 14,000,000 0Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07 4,040,000 0Capital Improvement Revenue Note, Series 1996, due 10/1/06 175,000 0Capital Improvement Revenue Note (Airport), Series 2002, due 10/1/07 0 203,669Gulf Breeze Loan Pool Note, Series 2000A, due 10/01/17 6,500,000 0Gulf Breeze Loan Pool Note, Series 2000B, due 10/01/17 13,500,000 0

$57,883,526 $52,303,669

Source : City of Pensacola, Florida, Comprehensive Annual Financial Report Escambia County, Florida, Comprehensive Annual Financial Report

98


DIRECT DEBT OF COUNTY-WIDE ORGANIZATIONS (continued)

SEPTEMBER 30, 2004

(Unaudited)

Overlapping Long Term Debt of the City of PensacolaAs of September 30, 2004

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 10/1/18Gas System Revenue Refunding Bonds, Series 1994, due 12/1/07Gas System Revenue Refunding Bonds, Series 1999, due 12/1/19Gulf Breeze Loan Pool Note, Series 1997, due 12/1/14Gulf Breeze Loan Pool Note, Series 1998, due 12/1/14Redevelopment Refunding, Series 2004, due 4/1/14Sales and Excise Tax Revenue Bonds, Series 1990, due 10/1/05Sales and Excise Tax Revenue Bonds, Series 1995, due 10/1/12Sales and Excise Tax Revenue Bonds, Series 1996, due 10/1/08Sales and Excise Tax Revenue Bonds, Series 2004, due 10/1/14Infrastructure Sales Tax Revenue Bonds, Series 1998, due 4/1/07Capital Improvement Revenue Note, Series 1996, due 10/1/06Capital Improvement Revenue Note (Airport), Series 2002, due 10/1/07Gulf Breeze Loan Pool Note, Series 2000A, due 10/01/17Gulf Breeze Loan Pool Note, Series 2000B, due 10/01/17

Source : City of Pensacola, Florida, Comprehensive Annual Financial ReportEscambia County, Florida, Comprehensive Annual Financial Report

98

00

00

0

02,698,0001,898,0003,271,8663,105,660

95,0008,600,000

14,000,0004,040,000

175,0000

6,500,00013,500,000

$4,270,00013,895,0005,800,000

15,380,0004,755,0008,000,000

0

00

00

00

00

203,6690O

$57,883,526 $52,303,669

TABLE 8


SPECIAL ASSESSMENT COLLECTIONS


(Unaudited)

Current CurrentFiscal assessments assessmentsyear billed collected

1995 $8,805,017 $8,382,4821996 $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 $16,260,094

Note: The above amounts are comprised of collections from the MunicipalServices 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 increased from $32 to $50 for a single-family residence, a 56% increase.

99

TABLE 8


SPECIAL ASSESSMENT COLLECTIONS


Fiscalyear

1995199619971998199920002001200220032004

(Unaudited)

Currentassessments

billed

$8,805,017$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

Currentassessments

collected

$8,382,482$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

Note: The above amounts are comprised of collections from the MuniciServices Taxing Unit, the Navarre Beach Fire District, the Fire ProtectiOIFund, 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.

99

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

1995 $2,733,275 $2,213,778 $519,497 $220,000 $361,127 $581,127 0.891996 $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/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.

100

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

1995 $2,733,275 $2,213,778 $519,497 $220,000 $361,127 $581,127 0.891996 $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/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.

100

TABLE 10


DEMOGRAPHIC STATISTICS


(Unaudited)

UnemploymentFiscal Per capita School Percentage Medianyear Population (1) income (2) enrollment (3) rate (4) age (2)

1995 282,742 $16,899 44,725 5.1% 32.41996 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% 36

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.

101

Fiscalyear

1995199619971998199920002001200220032004

Sources:

Population (1)

282,742280,900286,301291,135296,164301,613294,410296,709297,280300,959


DEMOGRAPHIC STATISTICS


Per capitaincome (2)

$16,899$18,509$18,639$19,253$21,638$22,441$24,487$25,359$26,230$21,295

(Unaudited)

Schoolenrollment (3)

44,72547,74846,24844,64844,74245,16543,50843,31942,94443,142

(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.

101

UnemploymentPercentage

rate (4)

5.1%5.0%4.0%4.2%3.6%3.5%3.8%3.8%4.0%3.5%

TABLE 10

Medianage (2)

32.433.534.034.634.835.135.435.43536


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

1995 156 $62,310,433 1,483 $90,748,585 $2,133,606 $1,133,966,250 $2,819,093,180 $196,850,770 $4,149,910,200 $4,132,336,6301996 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 $5,911,631,691

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.

102

Fiscalyear

1995199619971998199920002001200220032004

Source:(1) Data provided by Escambia County Building Inspections Department.

(2) FDIC, information is as of June 30,2004

CommercialConstruction (1)


PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS

ResidentialConstruction (1 )

Numberof Permits Value

15616024217023316198

1,1701,1651,345

$62,310,433$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

Numberof units

1,4832,5482,5651,9221,8591,7951,7661,8892,2102,174

Value

$90,748,585$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


(Unaudited)

Bank deposits (2)(in thousands)

$2,133,606$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

Assessed property value (3)

TABLE 11

Commercial

$1,133,966,250$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

Residential

$2,819,093,180$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

(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.

102

Other (4)

$196,850,770$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

Totalnon-exempt

$4,149,910,200$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

Exempt

$4,132,336,630$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

TABLE 12


PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2004

(Unaudited)

PercentageAssessed value Amount paid of tax levy

Gulf Power Company $396,404,070 $7,479,393 * 3.23 %

International Paper $248,994,160 $4,007,704 2.32 %

Solutia, Inc. $169,784,780 $3,050,158 1.77 %

Bell South Telecommunication $101,156,180 $1,976,783 * 0.87 %

West Florida Regional Medical Center $88,795,590 $1,626,365 0.94 %

Simon Group $49,175,610 $1,040,099 * 0.85 %

Cordova Community $48,504,320 $1,030,675 * 0.45 %

Cox Communications $45,726,100 $849,217 0.49 %

Walmart Stores $38,394,000 $798,108 * 0.34 %

Armstrong World $33,667,550 $749,877 * 0.32 %

Grand Total $1,220,602,360 $22,608,379

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.

103


Gulf Power Company

International Paper

Solutia, Inc.

Bell South Telecommunication

West Florida Regional Medical Center

Simon Group

Cordova Community

Cox Communications

Walmart Stores

Armstrong World

Grand Total

NOTE: Discrepancies between taxes paid and assessed value occur due to payment datesinvolving discounts and/or penalties and industrial exemptions where applicable.

PRINCIPAL TAXPAYERS

SEPTEMBER 30, 2004

(Unaudited)

Assessed value Amount paid

TABLE 12

Percentageof tax levy

$396,404,070

$248,994,160

$169,784,780

$101,156,180

$88,795,590

$49,175,610

$48,504,320

$45,726,100

$38,394,000

$33,667,550

$7,479,393

$4,007,704

$3,050,158

$1,976,783

$1,626,365

$1,040,099

$1,030,675

$849,217

$798,108

$749,877

$1 ,220,602,360

Taxes paid followed by an * include city millage.

SOURCE: Escambia County Tax Roll compiled by the Escambia County Property Appraiser

$22,608,379

and tangible personal property records on file in the Escambia CountyTax Collector's office.

103

3.23 %

2.32 %

1.77 %

0.87 %

0.94 %

0.85 %

0.45 %

0.49 %

0.34 %

0.32 %

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 1,200Pensacola 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 433Wayne Dalton Corporation Garage door manufacturer 400CHCS Services, Inc. Insurance claims 408Pensacola News Journal Newspaper 406DANA Coupled Products Automobile brake systems 300Armstrong World Industries Acoustical ceiling 300General Electric Wind energy systems 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.

104

TABLE 13


MAJOR EMPLOYERS

(Unaudited)

Company ProductNumber ofemployees

Local governmentFederal governmentState of FloridaSacred Heart Health SystemBaptist Health CareUniversity of West FloridaSolutia, Inc.LakeviewGulf Power CompanyWest Florida HospitalPensacola Christian CollegeInternational PaperPensacola Junior CollegeWest CorporationMedical Center ClinicNetwork TelephoneECUASMG Food ServicesSanta Rosa Medical Center, Inc.CitiFinancialWayne Dalton CorporationCHCS Services, Inc.Pensacola News JournalDANA Coupled ProductsArmstrong World IndustriesGeneral Electric

Government servicesGovernment servicesGovernment servicesHealth care serviceHealth care serviceEducationNylon fiber/chemicalsHealth care serviceElectric utilityHealth care serviceSchool and publishingPaper productsEducationBroadband wireless supportHealth care serviceCommunications servicesPublic utilitiesEntertainment and food servicesHealth care serviceFinancial servicesGarage door manufacturerInsurance claimsNewspaperAutomobile brake systemsAcoustical ceilingWind energy systems

SOURCE: Pensacola Chamber of Commerce

15,790 *7,403 *5,9703,5003,4702,2671,8001,5001,4001,2001,078

900770750725582510475450433400408406300300250

* This figure includes all government employees in both Santa Rosa and Escambia Counties(Pensacola MSA) including both County's School Boards.

104

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

1995 $2,109,896 $13,297,438 $6,224,824 $21,522,630 $43,154,7881996 $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 $61,694,989

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.

105

FiscalYear

1995199619971998199920002001200220032004

Local OptionTourist Tax (1)

$2,109,896$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


SPECIAL TAX COLLECTIONS


1/2 CentSales Tax

$13,297,438$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

(Unaudited)

Local OptionGas Tax (2)

$6,224,824$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

Local OptionInfrastructure Sales

Surtax (3)

$21,522,630$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

TABLE 14

Total

$43,154,788$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

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.

105

Table 15ESCAMBIA COUNTY, FLORIDA

INSURANCE SCHEDULEFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package Blue Cross Blue Shield 5/1/04-5/1/05 97305 8,286,873.11

Employee Dental Package Delta Dental Services, Inc. 10/1/03-9/30/06 1440 505,658.43

Employee Life and AD&D Standard Life 10/1/99-9/30/04 638071 116,000.00

Law Enforcement Statutory A. Downing Gray/ 1/1/03-06 ETB 105347 $100,000.00 20,969.00 Death Benefits The Hartford Group

Worker's Compensation Self Insured $350,000.00

Excess Worker's Compensation Lon Bryan & Company 1/1/04-05 MDB0219185 $350,000.00 Statutory Limits 198,000.00 & Excess General Liability State National Insurance Co. 1mil/2mil

106

ESCAMBIA COUNTY, FLORIDAINSURANCE SCHEDULE


Table 15

DESCRIPTION AGENCY/CARRIER POLICY PERIODBOARD OF COUNTY COMMISSIONERSEMPLOYEE RELATED INSURANCE

Employee Health Package Blue Cross Blue Shield 5/1/04-5/1/05

Employee Dental Package Delta Dental Services, Inc. 10/1/03-9/30/06

Employee Life and AD&D Standard Life 10/1/99-9/30/04

Law Enforcement Statutory A. Downing Gray/ 1/1/03-06Death Benefits The Hartford Group

Worker‘s Compensation Self Insured

Excess Worker's Compensation Lon Bn/an & Company 1/1/04-05& Excess General Liability State National Insurance Co.

POLICY NUMBER DEDUCTIBLE

97305

1440

638071

ETB 1 05347

MDB0219185 $350,000.00

106

POLICY LIMITS

$100,000.00

$350,000.00

Statutory Limits1miI/2mil

04 PREMIUM

8,286,873.11

505,658.43

1 16,000.00

20,969.00

198,000.00

Table 15ESCAMBIA COUNTY, FLORIDA (Continued)

INSURANCE SCHEDULEFOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (CONTINUED)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMFLOOD & WINDSTORM INSURANCE

C&P Bank Building Lon Bryan & Company 12/01/03-04 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 10/04/03-04 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 10/04/03-04 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 10/04/03-04 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 07/27/04-05 6500216798 (B) $500.00 (B) $84,000.00 1,683.0025 S. Spring St. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Booking & Detention Lon Bryan & Company 10/07/03-04 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 03/06/04-05 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 12/30/03-04 6500359150 (B) $500.00 (B) $348,000.00 4,690.0041 Ft. Pickens Rd. Travelers Property & Casualty (C) $500.00 (C) $250,000.00

Old Orvis (Ordon's) Bldg Lon Bryan & Company 04/12/04-05 6500677452 (B) $500.00 (B) $250,000.00 910.00201/207 South Palafox St. Travelers Property & Casualty (C) 0

107


FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2004 (CONTINUED)

Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 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 8. Spring St.

Booking & Detention1200 West Leonard St.

Old Heath Dpt/Public Defenders2251 North Palafox St.

Sheriffs Sub-Station41 Ft. Pickens Rd.

Old ONIS (Ordon's) Bldg201/207 South Palafox St.

Lon Bn/an & CompanyTravelers Property & Casualty









12/01/03-04

10/04/03-04

10/04/03-04

10/04/03-04

07/27/04-05

10/07/03-04

03/06/04-05

12/30/03-04

04/12/04-05

6500354995

6500277840

6500277832

6500277865

6500216798

6500277873

6500406662

6500359150

6500677452

107

(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) $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

2,096.00

3,413.00

2,096.00

2,142.00

1,683.00

2,096.00

3,413.00

4,690.00

910.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMFacilities Management Lon Bryan & Company 08/04/04-05 6004401664 (B) $500.00 (B) $500,000.00 2,415.00100/120 East Blount Travelers Property & Casualty (C) $500.00 (C) $245,000.00

Sheriffs Sub-Station - WINDSTORM Lon Bryan & Company 11/30/03-04 353438 (B) $11,550.00 (B) $385,000.00 1,166.0041 Ft. Pickens Rd. Citizens Property Insurance Corp

Santa Rosa Toll Booth Lon Bryan & Company 10/16/03-04 6500316960 (B) $500.00 (B) $500,000.00 1,140.00451 Pensacola Blvd Travelers Property & Casualty (C) $500.00 (C) $281,700.00

Santa Rosa Toll Booth - WINDSTORM Lon Bryan & Company 10/15/03-04 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

BONDS

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 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/ 5/10/02-11/21/04 POB8526340 $0.00 $2,000.00 109.00Marie 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

Overweight Penalty Fisher Brown/ 8/22/04-05 400MA6122 $0.00 $10,000.00 100.00USF&G

108



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMFacilities Management100/120 East Blount

Sheriffs Sub-Station - WINDSTORM41 Ft. Pickens Rd.

Santa Rosa To|| Booth451 Pensacola Blvd

Santa Rosa Toll Booth - WINDSTORM451 Pensacola Blvd

BONDS

Public Official Dist 1Clifford Barnhart

Public Official Dist 2Bill Dickson

Public Official Dist 3Marie Young

Public Official Dist 4Thomas Banjamin

Public Official Dist 5Janice Gilley

Overweight Penalty

Lon Bwan & CompanyTravelers Property & Casualty

Lon Bwan & CompanyCitizens Property Insurance Corp

Lon Bwan & CompanyTravelers Property & Casualty

Lon Bwan & CompanyCitizens Property Insurance Corp

Fisher Brown/Fidelity & Deposit





Fisher Brown/USF&G

08/04/04-05

1 1/30/03-04

10/16/03-04

10/15/03-04

5/10/02-11/16/04

11/19/02-11/20/06

5/10/02-11/21/04

11/19/02-11/20/06

5/10/02-11/16/04

8/22/04-05

6004401664

353438

6500316960

1119917

POB8526338

POB8526374

POB8526340

POB8117136

POB8526341

400MA6122

108

(B) $500.00(C) $500.00

(B) $11,550.00

(B) $500.00(C) $500.00

(B) $21,546.00(C) $8,453.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

(B) $500,000.00(C) $245,000.00

(B) $385,000.00

(B) $500,000.00(C) $281,700.00

(B) $718,212.00(C) $281,788.00

$2,000.00

$2,000.00

$2,000.00

$2,000.00

$2,000.00

$10,000.00

2,415.00

1,166.00

1,140.00

2,141.00

109.00

121.00

109.00

121.00

109.00

100.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMECAT, ELECTED OFFICIALS, AND MISC.EMPLOYEE RELATED INSURANCE

Volunteers Death and CIMA 07/01/04-05 5P5900304 $25,000.00 $7,569.00Dismemberment and Medical

ECAT - ATC/VANCOM Fisher BrownECAT Workers' Comp Bridgefield Employers Reinsurance 12/01/03-04 BEI 0830-25835-0000 None Statutory $175,295.00ECAT Employers Liability Group Travel CAN Insurance Company 07/08/03-04 SR-83096773 $1,000.00ECAT - ERISA Bond Travelers Indemnity Company 10/31/03-04 35BZ1032386928CM $128.00

PROPERTY AND CASUALTY INSURANCE

Third Party Pollution Liability (VFD) Southeast Ins. Association 10/01/0-3-04 04-TO-000059185 $5,000.00 $1,000,000/$2,000,000 $843.00Great American

Third Party Pollution Liability (County) FPLIPA/Commerce & Industry 10/01/0-3-04 FPL1953729-1 $5,000.00 $1,000,000/$2,000,000 $4,672.00

ECAT: Required Liability Southeast Specialty UnderwritersECAT: Commercial General Liability National Interstate Insurance Company07/01/03-04 CRTGLF098121 $10,000,000.00 $16,679.00ECAT: Automobile Liability National Interstate Insurance Company07/01/03-04 CRTCAF097923 $5,000.00 $10,000,000.00 $330,983.00ECAT: Garage Liability Colony Insurance Company 07/01/03-04 CP3033075 $1,000,000.00 $9,681.00ECAT: Garage Keepers Legal Liability Essex Insurance Company 07/01/03-04 5CA0336 $5,000.00 $500,000.00 $6,755.00

WILDLIFE: Commercial General Liability Hiles-McLeod Insurance, Inc. 01/08/04-05 535B001293 $0.00 $1,000,000.00 $978.00Burlington Insurance Company

BONDS

Clerk of the Courts Fisher Brown/ 1/2/01-1/4/05 30560701 $0.00 $50,000.00 $689.00Ernie Lee Magaha Fidelity & Deposit

Clerk Honesty & Faithful Holloway Insurance/Performance Blanket Fidelity & Deposit 9/30/01-04 CCP-0013678 $0.00 $25,000.00 $1,284.00

Property Appraiser Fisher Brown/ 1/2/01-1/4/05 POB8526408 $0.00 $25,000.00 $383.00Chris Jones USF&G

Tax Collector Holloway Insurance/ 01/02/01-01/04/05 POB30560701 $0.00 $50,000.00 $962.00Janet Holley Fidelity & DepositPublic Official Bond

109



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMECAT ELECTED OFFICIALS AND MISC.EMPLOYEE RELATED INSURANCE

Volunteers Death andDismemberment and Medical

ECAT - ATCNANCOMECAT Workers' CompECAT Employers Liability Group TravelECAT - ERISA Bond

CIMA

Fisher Brown

07/01/04-05

Bridgefield Employers Reinsurance 12/01/03-04CAN Insurance CompanyTravelers Indemnity Company


Third Party Pollution Liability (VFD)

Third Party Pollution Liability (County)

ECAT: Required LiabilityECAT: Commercial General LiabilityECAT: Automobile LiabilityECAT: Garage LiabilityECAT: Garage Keepers Legal Liability

WILDLIFE: Commercial General Liability

BONDS

Clerk of the CourtsErnie Lee Magaha

Clerk Honesty & FaithfulPerformance Blanket

Property AppraiserChris Jones

Tax CollectorJanet HolleyPublic Official Bond

Southeast Ins. AssociationGreat American

FPLIPA/Commerce & Industry

07/08/03-0410/31 /03-04

10/01/0-3-04

10/01/0-3-04

Southeast Specialty UnderwritersNational Interstate Insurance Compai07/O1/O3-04National Interstate Insurance Compai07/O1/O3-04Colony Insurance CompanyEssex Insurance Company

HiIes-McLeod Insurance, Inc.

07/01/03-0407/01/03-04

01/08/04-05Burlington Insurance Company


Holloway Insurance/Fidelity & Deposit

Fisher Brown/USF&G

Holloway Insurance/Fidelity & Deposit

1/2/01-1/4/05

9/30/01 -04

1/2/01-1/4/05

01/02/01-01/04/05

5P5900304

BEI 0830-25835-0000SR-8309677335BZ1032386928CM

04-TO-000059185

FPL1953729-1

CRTGLF098121CRTCAF097923CP30330755CA0336

535B001293

30560701

COP-0013678

POB8526408

POB30560701

109

None

$5,000.00

$5,000.00

$5,000.00

$5,000.00

$0.00

$0.00

$0.00

$0.00

$0.00

$25,000.00

Statutory

$1 ,000,000/$2,000,000

$1 ,000,000/$2,000,000

$10,000,000.00$10,000,000.00$1,000,000.00$500,000.00

$1,000,000.00

$50,000.00

$25,000.00

$25,000.00

$50,000.00

$7,569.00

$175,295.00$1,000.00

$128.00

$843.00

$4,672.00

$16,679.00$330,983.00

$9,681.00$6,755.00

$978.00

$689.00

$1,284.00

$383.00

$962.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMTax CollectorEmployee Honesty & Holloway Insurance/ 09/30/98-2/16/05 18244320 $0.00 $50,000.00 $1,059.24Faithful Perf. Bond Western Surety/C N A

Tax CollectorCommercial Crime Policy Holloway Insurance/ 02/16/97-3/7/05 CCP30508701 $0.00 $100,000.00 $4,502.00Faithful Performance Blanket Western Surety Deposit

110



Table 15(Continued)

DESCRIPTIONTax CollectorEmployee Honesty &Faithful Perf. Bond

Tax CollectorCommercial Crime PolicyFaithful Performance Blanket

AGENCY/CARRIER POLICY PERIOD POLICY NUMBER

Holloway Insurance/ 09/30/98-2/16/05 18244320Western Surety/C N A

Holloway Insurance/ 02/16/97-3/7/05 CCP30508701Western Surety Deposit

110

DEDUCTIBLE

$0.00

$0.00

POLICY LIMITS

$50,000.00

$100,000.00

04 PREMIUM

$1 ,059.24

$4,502.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMVOLUNTEER FIRE DEPARTMENTSWORKER'S COMPENSATION

*VFDBellview Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Beulah Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Brent Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Cantonment Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Century Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Ensley Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Ferry Pass Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Innerarity Point Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19McDavid Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Molino Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Myrtle Grove Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Pensacola Beach Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Pleasant Grove Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Walnut Hill Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19Warrington Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19West Pensacola Whitman & Whitman Inc./PGIT 01/01/03 thru 09/30/04 10000000235103 $2,500.00 Statutory $5,966.19

*Accident & Health Whitman & Whitman, Inc 01/01/04 thru 01/01/05 1028613 $75,000.00 $10,602.00All Depts/ VFD Standard Security $75,000.00 -Death

CASUALTY INSURANCE

*Commercial Package Whitman & Whitman, Inc 01/01/04 thru 01/01/05 MEPK049439 $102,948.00All Depts/ VFD Arch Insurance Company -Property (all locations) Agreed Value/$9,373,540 -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 01/01/04 thru 01/01/05 MEIM049440 $61,545.00All Depts/ VFD Arch Insurance Company per schedule -Portable Equipment $100.00 -Boats $100.00 -Auto Physical Damage $100 $250 Agreed Value (Fire Apparatus)

*Commercial Unbrella Whitman & Whitman, Inc 01/01/04 thru 01/01/05 MEUM049441 $1,000,000.00 per occ.All Depts/ VFD Arch Insurance Company $1,000,000 aggregate $10,895.00

111



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 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)-Flood-Other including wind

-Auto Policy-Physical Damage-Liabi|ity

- General Liability-Professional

Inland MarineAll Depts/ VFD

-Portab|e Equipment-Boats-Auto Physical Damage

(Fire Apparatus)

*Commercial UnbrellaAll 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



01/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/0401/01/03 thru 09/30/04

01/01/04 thru 01/01/05

10000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103100000002351031000000023510310000000235103

1028613

01/01/04 thru 01/01/05 MEPK049439

01/01/04 thru 01/01/05 ME|M049440

01/01/04 thru 01/01/05 MEUM049441

111

$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory$2,500.00 Statutory

$100 $250NoneNone

$1 00 $250

$75,000.00$75,000.00

Agreed Value/$9,373,540$1,000.00 $1 ,000,000/each location

$250.00 $1 ,000,000/each location

per schedule$100.00$100.00

Agreed Value

$1,000,000.00 per occ.$1,000,000 aggregate

$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19$5,966.19

$10,602.00

$102,948.00

$61,545.00

$10,895.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSANTA ROSA ISLAND AUTHORITYWINDSTORM COVERAGEVarious locations Molton, Allen & Williams 9/27/03-04 99530 3% various $16,946.00

Citizens Property Ins. Co.

BUSINESS AUTOMolton, Allen & Williams 10/01/03-04 C2022778756 (Com) $500.00 $1,000,000.00 $37,699.00Transportation Co. (Coll) $500.00

PROPERTY INSURANCEVarious locations Molton, Allen & Williams 10/01/03-04 C2022778773 $2,500.00 various $24,092.57

Continental Casualty Co.

NATIONAL FLOOD#1 Via DeLuna Drive Molton, Allen & Wms 12/11/03-04 99018616862003 $1,000.00 (B) $500,000.00 $1,642.00

Catawba Ins. Co. (C) $300,000.00

Maintenance Bldg 1 Molton, Allen & Wms 10/30/03-04 99017836372003 $1,000.00 (B) $300,000.00 $3,851.00Catawba Ins. Co. (C) $100,000.00

Visitor's Info Center Molton, Allen & Wms 1/22/04-05 99019002192004 $1,000.00 (B) $200,000.00 $834.00Catawba Ins. Co. (C) $50,000.00

Quietwater Rest Station #2 Molton, Allen & Wms 10/16/03-04 99017734182003 $1,000.00 (B) $100,000.00 $844.00Catawba Ins. Co.

Casino Beach Restrooms Molton, Allen & Wms 10/01/03-04 99017734212003 $1,000.00 (B) $125,000.00 $1,032.00Catawba Ins. Co.

Maintenance Vehicle Shed Molton, Allen & Wms 6/14/04-05 1477946002004 $1,000.00 (B) $150,000.00 $1,947.00Catawba Ins. Co. (C) $50,000.00

Quietwater Restrooms Molton, Allen & Wms 9/8/03-04 99017921872003 $1,000.00 (B) $100,000.00 $224.00Catawba Ins. Co.

Maintenance Bldg #3 Molton, Allen & Wms 1/26/04-05 1484524002004 $1,000.00 (B) $80,000.00 $1,570.00Catawba Ins. Co. (C) $60,000.00

Ft. Pickens Restrooms Molton, Allen & Wms 8/30/03-04 99017836302003 $1,000.00 (B) $225,000.00 $1,567.00Catawba Ins. Co.

BONDSEmployee Dishonesty Molton, Allen & Wms 10/01/03-04 21BPEBY6587 $10,000.00 $460.00

Hartford Ins. Co.

112



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 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

Molton, Allen & WilliamsCitizens Property Ins. Co.

Molton, Allen & WilliamsTransportation Co.

Molton, Allen & WilliamsContinental Casualty Co.

Molton, Allen & WmsCatawba Ins. Co.









Molton, Allen & WmsHartford Ins. Co.

9/27/03-04

10/01/03-04

10/01/03-04

12/11/03-04

10/30/03-04

1/22/04-05

10/16/03-04

10/01/03-04

6/14/04-05

9/8/03-04

1/26/04-05

8/30/03-04

10/01/03-04

99530

C2022778756

C2022778773

99018616862003

99017836372003

99019002192004

99017734182003

99017734212003

1477946002004

99017921872003

1484524002004

99017836302003

21 BPEBY6587

112

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

$1,000.00

vanous

$1,000,000.00

vanous

(B) $500,000.00(C) $300,000.00

(B) $300,000.00(C) $100,000.00

(B) $200,000.00(C) $50,000.00

(B) $100,000.00

(B) $125,000.00

(B) $150,000.00(C) $50,000.00

(B) $100,000.00

(B) $80,000.00(C) $60,000.00

(B) $225,000.00

$10,000.00

$16,946.00

$37,699.00

$24,092.57

$1,642.00

$3,851.00

$834.00

$844.00

$1,032.00

$1,947.00

$224.00

$1,570.00

$1,567.00

$460.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSRIA Public Officials Bonds:Donald L. Ayres Old Republic Surety Co. 9/2/02-continuous OFL0474653 $0.00 $10,000.00 $100.00Thomas E. Blas Old Republic Surety Co. 11/19/02-continuous OFL0474657 $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-continuous OFL0474656 $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

113



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSRIA Public Officials Bonds:Donald L. AyresThomas E. BiasThomas A. CampanellaJimmie PerkinsWilliam H. GriffithW. McGuire Martin

Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Old Republic Surety Co.Fidelity & Deposit Co.

9/2/02-continuous11/19/02-continuous11/5/02-continuous10/17/02-continuous9/17/02-continuous11/4/02-11/1/06

OFL0474653OFL0474657OFL0474655OFL0474656OFL0474654POB81 1 7145

113

$0.00$0.00$0.00$0.00$0.00$0.00

$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00$10,000.00

$100.00$100.00$100.00$100.00$100.00$205.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMCIVIC CENTEREMPLOYEE RELATED INSURANCE

Pensacola Civic Center Aon Risk Services 10/1/03-10/1/04 WC7913918-10 None $1,000,000.00 $89,002.00Worker's Compensation Zurich American Ins Co. Statutory


Pensacola Civic Center/ Marsh 10/01/03-07/01/04 285-1825 None $5,000,000.00 see belowCommercial Umbrella Liability Lexington Insurance Company

Pensacola Civic Center/ Marsh 10/01/03-07/01/04 79544602 None $1,000,000.00 see belowCommercial General Liability Federal Insurance Co.

Business Automobile Liability Marsh 10/01/03-07/01/04 79544601 (AOS) None $1,000,000.00 see belowFederal Insurance Co. 7954-46-26 (TX)

TOTAL PREMIUM (1 POLICY): $78,184.00

Pensacola Civic Center/ Aon Risk Services 7/7/01-7/7/04 CRP217133200 $10,000.00 $1,000,000.00 $302.00Crime Insurance Great American Insurance Co.

INCLUDED IN COUNTY'S PACKAGE

Commercial Property Lon Bryan & Company 3/2/03-3/2/04 CRC10167 $100,000.00 $1,000,000.00 Inc. w/ CountyClarendon National Insurance

Flood Insurance Lon Bryan & Company 3/2/03-3/2/04 6500419822 (B) $500.00 $100,000.00 $1,150.00Travelers Property & Casualty (C) $500.00 $100,000.00

114



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMCIVIC CENTEREMPLOYEE RELATED INSURANCE

Pensacola Civic CenterWorker‘s Compensation

Aon Risk Services 10/1/03-10/1/04 WC7913918-10Zurich American Ins Co.


Pensacola Civic Center/Commercial Umbrella Liability

Pensacola Civic Center/Commercial General Liability

Business Automobile Liability

TOTAL PREMIUM (1 POLICY):

Pensacola Civic Center/Crime Insurance

INCLUDED IN COUNTY'S PACKAGE

Commercial Property

Flood Insurance

Marsh 10/01/03-07/01/04Lexington Insurance Company

285-1 825

Marsh 10/01/03-07/01/04Federal Insurance Co.

79544602

Marsh 10/01/03-07/01/04Federal Insurance Co.

79544601 (AOS)7954-46-26 (TX)

Aon Risk Services 7/7/01-7/7/04 CRP217133200Great American Insurance Co.

Lon Bwan & Company 3/2/03-3/2/04 CRC10167Clarendon National Insurance

3/2/03-3/2/04Lon Bwan & Company 6500419822Travelers Property & Casualty

114

None

None

None

None

$10,000.00

$100,000.00

(B) $500.00(C) $500.00

$1,000,000.00Statutory

$5,000,000.00

$1,000,000.00

$1,000,000.00

$1,000,000.00

$1,000,000.00

$100,000.00$100,000.00

$89,002.00

see below

see below

see below

$78,184.00

$302.00

Inc. w/ County

$1,150.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSHERIFF'S OFFICE

PROPERTY & CASUALTY INSURANCE:

Sheriff's Auto Liability/Physical Damage Hunt Ins. Grp/Sharp 10/1/03-10/1/04 BA02A-17-87 None $100,000/person $454,923.00$200,000/occurrence$500,000 contingencies

Law Enforcement Professional Liability Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 02P-17-81 None $3,100,000/person $880,688.00$3,300,000/occurrence

Inmate Medical Excess Loss Hunt Ins. Grp/ 10/1/03-10/1/04 200-5191 None $1,000,000 $55,307.00Lexington Insurance Co.

Horse Accidental Death & Destruction Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 None $17,500 $350.00

Watercraft Liability Coverage Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 None Legal liability of operation $1,750.00

Watercraft Hull Coverage Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 $1000/claim $32,500 $813.00

Aircraft Liability Hunt Ins. Grp/ 11/5/03-11/5/04 ACN770338 None Physical Damage $10,010.00Westchester Fire Ins.

BONDS:

Sheriff Ron Mcnesby Excess Hunt Ins./FSSIF 10/1/03-10/1/04 03P-17-81 None $100,000/300,000 $25,000.00

Deputy Sheriff's Blanket Hunt Ins./Western 10/1/03-10/1/04 18258230 None $1000 Per Deputy $2,265.00Surety Deposit

Sheriff's Public Employee Blanket Hunt Ins./FSSIF 10/1/03-10/1/04 03P-17-81 $200/claim $50,000 $897.00

Sheriff's Broad Form Money & Hunt Ins./FSSIF 10/1/03-10/1/04 03P-17-81 $200/claim $10,000 $832.00Securities Coverage

Sheriff's Flash Roll Money Coverage Hunt Ins./FSSIF 10/1/03-10/1/04 03P-17-81 $5000/claim $50,000 $2,750.00

115



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSHERIFF'S OFFICE

PROPERTY & CASUALTY INSURANCE:

Sheriff‘s Auto Liability/Physical Damage Hunt Ins. Grp/Sharp 10/1/03-10/1/04 BA02A-17-87 None

Law Enforcement Professional Liability Hunt Ins. Grp/FSSIF 10/1/02-10/1/03 02P-17-81 None

Inmate Medical Excess Loss Hunt Ins. Grp/ 10/1/03-10/1/04 200-5191 NoneLexington Insurance Co.

Horse Accidental Death & Destruction Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 None

Watercraft Liability Coverage Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 None

Watercraft Hull Coverage Hunt Ins. Grp/FSSIF 10/1/03-10/1/04 03P-17-81 $1000/claim

Aircraft Liability Hunt Ins. Grp/ 11/5/03-11/5/04 ACN770338 NoneWestchester Fire Ins.

BONDS:

Sheriff Ron Mcnesby Excess Hunt lns./FSS|F 10/1/03-10/1/04 03P-17-81 None

Deputy Sheriff‘s Blanket Hunt Ins/Western 10/1/03-10/1/04 18258230 NoneSurety Deposit

Sheriff's Public Employee Blanket Hunt lns./FSS|F 10/1/03-10/1/04 03P-17-81 $200/claim

Sheriff‘s Broad Form Money & Hunt lns./FSS|F 10/1/03-10/1/04 03P-17-81 $200/claimSecurities Coverage

Sheriff‘s Flash Roll Money Coverage Hunt lns./FSS|F 10/1/03-10/1/04 03P-17-81 $5000/claim

115

$100,000/person$200,000/occurrence$500,000 contingencies

$3,100,000/person$3,300,000/occurrence

$1,000,000

$17,500

Legal liability of operation

$32,500

Physical Damage

$100,000/300,000

$1000 Per Deputy

$50,000

$10,000

$50,000

$454,923.00

$880,688.00

$55,307.00

$350.00

$1,750.00

$813.00

$10,010.00

$25,000.00

$2,265.00

$897.00

$832.00

$2,750.00



DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSELF INSURANCE


BCC: Commercial Crime Policy Lon Bryan & Company 1/1/04-05 006616266 $5,000.00 $500,000.00 $6,300.00Illinois National Insurance Co

Commercial Package - (TIV $249,682,308) Lon Bryan & Company $100,000.00 $1.5m Excess of $5m CRC/Employers Ins. Os Wausua 1/1/04-05 YSC-Z91-432756-014 $6,500,000.00 $141,600.00 $3.5m Excess of $5 CRC/Lloyds Underwriters 1/1/04-05 CRC-13264 $8,500,000.00 $331,196.00 $5m Excess of $5m CRC/Essex Ins. Co. 1/1/04-05 ESP1495 $10,000,000.00 $114,047.00 $5m Excess of $10m CRC/Clarendon America Ins. Co. 1/1/04-05 PCA12480 $15,000,000.00 $54,548.00 $5m Excess of $15m CRC/Great American E&S Ins. Co. 1/1/04-05 CGP5581536 $20,000,000.00 $50,000.00 $5m Excess of $20m CRC/Glencoe Ins. Ltd. 1/1/04-05 AR-25050-01 $25,000,000.00 $25,004.00 $175m Excess of $25m CRC/Landmark American Ins. Co. 1/1/04-05 LDH333212 $200,000,000.00 $76,859.00

$793,254.00

Boiler and Machinery Lon Bryan & Company 1/1/04-05 FBP-2286547 $10,000.00 $50,000.00 $20,890.00Hartford SteamBoiler or 10% (>)

Bob Sikes Bridge/SR Sound Bridge Department of Transportation 7/1/04-7/1/05 Structure #4801139 $25,000.00 $100,000,000.00/Blanket $24,507.65and #480123 or 1% (>) $100,000,000.00/Excess

116



Table 15(Continued)

DESCRIPTION AGENCY/CARRIER POLICY PERIOD POLICY NUMBER DEDUCTIBLE POLICY LIMITS 04 PREMIUMSELF INSURANCE


BCC: Commercial Crime Policy

Commercial Package - (TIV $249,682,308)$1.5m Excess of $5m$3.5m Excess of $5$5m Excess of $5m$5m Excess of $10m$5m Excess of $15m$5m Excess of $20m$175m Excess of $25m

Boiler and Machinery

Bob Sikes Bridge/SR Sound Bridge

Lon Bwan & CompanyIllinois National Insurance Co

Lon Bwan & CompanyCRC/Employers Ins. Os WausuaCRC/Lloyds UnderwritersCRC/Essex Ins. Co.CRC/Clarendon America Ins. Co.CRC/Great American E&S Ins. Co.CRC/Glencoe Ins. Ltd.CRC/Landmark American Ins. Co.

Lon Bwan & CompanyHartford SteamBoiIer

Department of Transportation

1/1/04-05

1/1/04-051/1/04-051/1/04-051/1/04-051/1/04-051/1/04-051/1/04-05

1/1/04-05

7/1/04-7/1/05

006616266

YSC-Z91-432756-014CRC-1 3264ES P1 495PCA1 2480CG P5581 536AR-25050-01LDH333212

FBP-2286547

Structure #4801139and #480123

116

$5,000.00

$100,000.00

$10,000.00or 10% (>)

$25,000.00or 1% (>)

$500,000.00

$6,500,000.00$8,500,000.00$10,000,000.00$15,000,000.00$20,000,000.00$25,000,000.00$200,000,000.00

$50,000.00

$100,000,000.00/B|anket$100,000,00000/Excess

$6,300.00

$141,600.00$331,196.00$114,047.00

$54,548.00$50,000.00$25,004.00$76,859.00

$793,254.00

$20,890.00

$24,507.65

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)

PLEDGED REVENUES

(Unaudfled)

117

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

BOBSIKES

YEAR BRIDGE

1986198719881989199019911992199319941995199619971998199920002001200220032004

$1,345,9201,172,5231,295,3351,714,7851,472,784

849,6491,312,3611,977,9721,988,4311,307,0461,854,835

REVENUES PLEDGED TO BONDS

GAS TAX

$2,717,9342,637,0602,585,4462,670,1162,561,6653,051,3262,857,9332,869,4473,009,2123,090,7753,160,7983,151,7533,113,5611,854,7163,284,504

CONSITUTIONAL HALF-CENTSALES TAX

$7,194,1437,606,8558,994,2829,226,6599,878,3289,684,913

10,362,85011,394,20811,932,14413,294,43814,555,78714,795,65115,472,52316,357,67317,009,33916,695,74218,174,27510,543,35319,478,506

117

TOURISTDEVELOPMENT LEASETAX

$702,296886,713

1,102,5451,624,0921,538,8231,620,0171,720,7921,827,8221,909,2832,109,8962,446,3253,252,2033,292,2093,236,4852,774,4743,784,7563,930,8932,118,4353,575,792

REVENUES

593,333600,000

118


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 1993B. 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.)

118

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, Series1993B. 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

119

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 Aream—

x

X County PopulationState Populationm—

x

X # of Fuel Gals. (00.)# of Fuel Gals. (State)m—

x

= County’s Distribution Factor

119

PLEDGE:The revenues generated from this tax arepledged to the payment of principal andinterest on the Road Improvement RevenueBonds, Series 19938. 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 1993B.

TAX INFORMATION:Tax Rate — 2 cents per gallonYear Began — 1943

120


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:

2/3 incorporatedarea population2/3 incorporatedarea population

unincorporated areapopulation +total countypopulation +

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.

120

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

121

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 h 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.

121

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.

122

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.

122

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)

123

$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

123

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.

RedemptionPrice102%101%100%

Redemption Period(dates inclusive)01/01/04 through 12/30/0401/01/05 through 12/31/0501/01/06 and thereafter

124

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B

(Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/04)

(Unaudited)

Bond Year %Ending Interest Total

January 1 Rate Principal Interest Debt Service

2005 4.750 $935,000 $233,456 $1,168,4562006 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 $5,160,000 $668,831 $5,828,831

ROAD IMPROVEMENT REVENUE BONDS, SERIES 1993B(Continued)

DEBT SERVICE SCHEDULE:(As of 09/30/04)

(Unaudited)



2005 4.750 $935,000 $233,456 $1,168,4562006 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 $5,160,000 $668,831 $5,828,831

124

125


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 Te rm 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.

125

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.

126

SALES TAX REVENUE REFUNDING BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/04) (Unaudited)

Bond Year %Ending Interest TotalSept 30 Rate Principal Interest Debt Service

Serial Bonds: ($41,355,000)2005 2.00 $1,680,000 $4,065,545 $5,745,5452006 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 $41,355,000 $62,097,068 $103,452,068

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 $89,730,000 $76,945,094 $166,675,094

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)2005 2.00 $1,680,000 $4,065,545 $5,745,5452006 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 $41,355,000 $62,097,068 $103,452,068

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 $89,730,000 $76,945,094 $166,675,094

126

127


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

127

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%

128

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE: (As of 09/30/04)

(Unaudited)


Serial Bonds:2005 2.00 $860,000 $569,950 $1,429,9502006 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 $15,860,000 $5,537,975 $21,397,975

TOURIST DEVELOPMENT REVENUE BONDS, SERIES 2002(Continued)


(Unaudited)


Serial Bonds:2005 2.00 $860,000 $569,950 $1,429,9502006 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 $15,860,000 $5,537,975 $21,397,975

128

129


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 DeenNoodPark 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.

129

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.

RedemptionPrice101%100%

Redemption Period(dates inclusive)10/01/2012 through 09/30/201310/01/2013 and thereafter

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.

130

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002 (Continued)

DEBT SERVICE SCHEDULE:

(As of 09/03/04) (Unaudited)

Bond Year %Ending Interest TotalOctober Rate Principal Interest Debt Service

Serial Bonds: ($4,885,000)2005 2.75 $425,000 $1,020,285 $1,445,2852006 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 $4,470,000 $8,554,855 $13,024,855

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 $21,890,000 $18,619,467 $40,509,467

Bond YearEndingOctober

Serial Bonds:2005200620072008200920102011201220132014201520162017

SUBTOTAL

Term Bonds:20142016202220272032

SUBTOTALTOTAL

CAPITAL IMPROVEMENT REVENUE BONDS, SERIES 2002(Continued)


(Unaudited)

%)Interest

Rate Principal

($4,885,000)2.75 $425,0002.75 440,0003.13 450,000300 4650003.20 480,000340 4950003.60 510,0003.85 530,000

0000

443 675000

Interest

$1,020,2851,008,598

998,498982,248988,298952,938938,108917,748

0000

772,137

TotalDebt Service

$1,445,2851,448,5981,448,4981,447,2481,448,2981,447,9381,448,1081,447,748

0000

1,447,137$4,470,000

($17,420,000)5.25 $1,130,0005.25 1,250,0004.75 3,870,0005.00 4,910,0005.00 8,280,000

$8,554,855

$1,785,3001,843,5003,381,3132,325,500

989,000

$13,024,855

$2,895,3002,893,5007,231,3137,235,5007,229,000

17,420,000$21,890,000

130

10,064,613$18,619,467

21484013$4Q509467

OTHER COUNTY DEBT

(Unaudited)

OTHERCOUNTYDEBT

(Unaudfled)

131

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, 2004 is $789,575. 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, 2004, the note balance was $9,130,000. 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, 2004, the note balance was $8,243,000. On October 1, 1999, Escambia County issued Governmental Unit Notes, Series 1999B and Series 1999C 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. Annual principal payments on the 1999B Series began in December 2001. As of September 30, 2004, the balance of both notes is $17,010,000. 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, 2004 is $385,834. 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 will begin October 1, 2004. As of September 30, 2004, the balance of the notes are $3,000,000.

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, 2004 is $789,575.

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, 2004, the note balance was$9,130,000.

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, 2004, the notebalance was $8,243,000.

On October 1, 1999, Escambia County issuedGovernmental Unit Notes, Series 19998 andSeries 1999C 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,

131

1999 through May 1, 2007. Annual principalpayments on the 1999B Series began inDecember 2001. As of September 30, 2004,the balance of both notes is $17,010,000.

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 30,2004 is $385,834.

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 will begin October 1, 2004.As of September 30, 2004, the balance of thenotes are $3,000,000.

132

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: 2.81% Maturity Date: December 31, 2005 Term: Monthly Interest Payments Annual Principal Payments

SCHEDULE OF PAYMENTS

(As of 09/30/04)

Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2005 $394,788 $6,134 $400,922 9/30/2006 394,787 1,235 396,022

TOTALS $789,575 $7,369 $796,944

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: 2.81%

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 09/30/04)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $394,788 $6,134 $400,9229/30/2006 394,787 1,235 396,022

TOTALS $789,575 $7,369 $796,944

132

133

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: 1.85% Maturity Date: October 1, 2017

SCHEDULE OF PAYMENTS

(As of 09/30/04)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $345,000 $162,176 $507,1769/30/2006 380,000 156,070 536,0709/30/2007 415,000 148,446 563,4469/30/2008 450,000 140,174 590,1749/30/2009 490,000 131,170 621,1709/30/2010 535,000 121,341 656,3419/30/2011 585,000 110,595 695,5959/30/2012 640,000 98,838 738,8389/30/2013 700,000 85,979 785,9799/30/2014 765,000 71,926 836,9269/30/2015 835,000 56,585 891,5859/30/2016 910,000 39,864 949,8649/30/2017 995,000 21,585 1,016,5859/30/2018 1,085,000 1,650 1,086,650

TOTALS $9,130,000 $1,346,399 $10,476,399

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: 1.85%Collateral: Escambia County ElectricFranchise Fees Maturity Date: October 1, 2017


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $345,000 $162,176 $507,1769/30/2006 380,000 156,070 536,0709/30/2007 415,000 148,446 563,4469/30/2008 450,000 140,174 590,1749/30/2009 490,000 131,170 621,1709/30/2010 535,000 121,341 656,3419/30/2011 585,000 110,595 695,5959/30/2012 640,000 98,838 738,8389/30/2013 700,000 85,979 785,9799/30/2014 765,000 71,926 836,9269/30/2015 835,000 56,585 891,5859/30/2016 910,000 39,864 949,8649/30/2017 995,000 21,585 1,016,5859/30/2018 1,085,000 1,650 1,086,650

TOTALS $9,130,000 $1,346,399 $10,476,399

133

134

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: 1.85% Maturity Date: February 1, 2007

SCHEDULE OF PAYMENTS (As of 09/30/04)

Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $2,641,000 $123,331 $2,764,3319/30/2006 2,746,000 74,131 2,820,1319/30/2007 2,856,000 22,148 2,878,148

TOTALS $8,243,000 $219,610 $8,462,610



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: 1.85%Collateral: Infrastructure Sales Tax Revenue

Maturity Date: February 1, 2007



TOTALS $8,243,000 $219,610 $8,462,610

134

135


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


Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2005 $1,010,000 $22,725 $1,032,725


CAPITAL IMPROVEMENT BOND, SERIES 1999B(LOAN #3A)(Unaudited)

Line of Credit: $14,000,000

Dated: October 1, 1999

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


Fiscal Year Principal InterestEnded Payments Payments

TotalDebt Service

9/30/2005 $1,010,000 $22,725 $1,032,725

135

136


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


Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2005 $3,695,000 $658,793 $4,353,793 9/30/2006 4,920,000 462,495 5,382,495 9/30/2007 7,385,000 219,468 7,604,468

TOTALS $16,000,000 $1,340,756 $17,340,756


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 $16,000,000 $1,340,756 $17,340,756

136

137


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: 1.85% Maturity Date: October 1, 2017


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $200,000 $52,740 $252,7409/30/2006 210,000 49,203 259,2039/30/2007 210,000 45,318 255,3189/30/2008 215,000 41,394 256,3949/30/2009 210,000 37,455 247,4559/30/2010 220,000 33,447 253,4479/30/2011 225,000 29,338 254,3389/30/2012 220,000 25,214 245,2149/30/2013 230,000 21,021 251,0219/30/2014 230,000 16,765 246,7659/30/2015 230,000 12,511 242,5119/30/2016 240,000 8,132 248,1329/30/2017 240,000 3,692 243,6929/30/2018 120,000 182 120,182

TOTALS $3,000,000 $376,412 $3,376,412



Loan Amount: $3,000,000 Collateral: Unsecured

Dated: November 13, 2003 Interest Rate: 1.85%

Purpose: Construction of the Work Release Maturity Date: October 1, 2017Residential Project


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $200,000 $52,740 $252,7409/30/2006 210,000 49,203 259,2039/30/2007 210,000 45,318 255,3189/30/2008 215,000 41,394 256,3949/30/2009 210,000 37,455 247,4559/30/2010 220,000 33,447 253,4479/30/2011 225,000 29,338 254,3389/30/2012 220,000 25,214 245,2149/30/2013 230,000 21,021 251,0219/30/2014 230,000 16,765 246,7659/30/2015 230,000 12,511 242,5119/30/2016 240,000 8,132 248,1329/30/2017 240,000 3,692 243,6929/30/2018 120,000 182 120,182

TOTALS $3,000,000 $376,412 $3,376,412

137

138

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 begin seven years after final advance


Fiscal Year Principal Interest Total Ended Payments Payments Debt Service 9/30/2005 $83,333 $635 $83,968 9/30/2006 83,333 635 83,968 9/30/2007 83,333 635 83,968 9/30/2008 83,335 635 83,970 9/30/2009 52,500 252 52,752

TOTALS $385,834 $2,792 $388,626

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 ofH10) Term: Installment payments begin seven

years after final advance


Fiscal Year Principal Interest TotalEnded Payments Payments Debt Service9/30/2005 $83,333 $635 $83,9689/30/2006 83,333 635 83,9689/30/2007 83,333 635 83,9689/30/2008 83,335 635 83,9709/30/2009 52,500 252 52,752

TOTALS $385,834 $2,792 $388,626

138

REFUNDED BONDS

(Unaudited)

REFUNDED BONDS

(Unaudited)

139

ESCAMBIA COUNTY OUTSTANDING REFUNDED DEBT

As of September 30, 2004

(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, 2004

(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 RevenuSeries 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

139

140


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 09/30/04)

%July 1, Interest Total

Maturities Rate Principal Interest Debt Service

2005 6.100 $1,430,000 $278,160 $1,708,1602006 6.100 1,520,000 190,390 1,710,3902007 6.100 1,610,000 98,210 1,708,210

TOTALS $4,560,000 $566,760 $5,126,760


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,Improvement RefundingBonds, Series 1980-1.

Florida,and

CaptialRevenue

AGENTS:Registrar— Escambia County, FloridaPaying Agent — SunTrust Bank, Trust and

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)

Investment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

CALL PROVISIONS:Escrowed to maturity

SUMMARY OF REMAINING DEBT SERVICE(As of 09/30/04)

%Interest

RateTotal

Debt ServiceJuly 1,

Maturities Principal Interest

200520062007

6.1006.1006.100

$1,430,0001,520,0001,610,000

$278,160190,39098,210

$1,708,1601,710,3901,708,210

TOTALS $4,560,000 $566,760 $5,126,760

140

141


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.


%July 1, Interest Total

Maturities Rate Principal Interest Debt Service

2005 6.875 $265,000 $82,500 $347,5002006 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 $1,200,000 $214,844 $1,414,844


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.

REFUNDED BY:Escambia County,Improvement RefundingBonds, Series 1980.

Florida, Capitaland Revenue

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

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, Slade, McCarthy & Kelly, PA,Jacksonville, FL

INITIAL RATINGS:Moody’s — AInsurer — None

CALL PROVISIONS:Escrowed to maturity.


%Interest

RateJuly 1,

Maturities

2005200620072008

TOTALS

6.8756.8756.8756.875

Principal

$265,000285,000310,000340,000

$1,200,000

Interest

$82,50064,28144,68823,375

$214,844

TotalDebt Service

$347,500349,281354,688363,375

$1,414,844

141

142


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.




2005 11.000 $1,900,000 $1,325,525 $3,225,5252006 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 $14,715,000 $4,613,275 $19,328,275


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

200520062007200820092010

TOTALS

11.00011.00011.0007.5007.5007.500

Principal

$1,900,0002,105,0002,335,0002,595,0002,785,0002,995,000

$14,715,000

TotalInterest Debt Service

$1,325,5251,116,525

884,975628,125433,500224,625

$4,613,275

$3,225,5253,221,5253,219,9753,223,1253,218,5003,219,625

$19,328,275

142

143

$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 09/30/04)

%Interest Total

Date Rate Principal Interest Debt Service

01/2005 10.500 $265,000 $57,573 $322,57307/2005 10.500 280,000 43,660 323,66001/2006 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 $1,095,000 $163,221 $1,258,221

$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 Barkley

Street, 7-E, New York, NY254-2826Escrow 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, FL

10286, (800)

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

01/200507/200501/200607/200601/200707/2007

TOTALS

10.50010.50010.50010.50010.60010.600

Principal

$265,000280,000185,000195,00080,00090,000

$1,095,000


$57,57343,66028,96019,248

9,0104,770

$163,221

$322,573323,660213,960214,248

89,01094,770

$1,258,221

143

144


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 09/30/04)



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


Bond Year %Ending Interest

January 1 Rate

2010 7.5002011 7.500

TOTALS

Principal

$4,455,0001,565,000 117,376

$6,020,000


$451,500 $4,906,5001,682,376

$568,876 $6,588,876

145

$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, SalesRevenue and Refunding Bonds,2002.

TaxSenes

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

145

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.

146


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 09/30/04)


December Rate Principal Interest Debt Service2005 6.000 $370,000 $215,820 $585,8202006 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 $3,655,000 $1,047,590 $4,702,590


TOURIST DEVELOPMENT REVENUE BONDSSERIES 1992

Dated: September1 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


Bond Year %Ending Interest

December Rate2005 6.000

PrincipalTotal

Interest Debt Service

2006200720082009201020112012

TOTALS

6.0006.0006.0006.0006.0006.0006.000

$370,000390,000415,000440,000465,000495,000525,000555,000

$3,655,000

$215,820195,100172,870148,800122,40094,50064,80033,300

$1,047,590

$585,820585,100587,870588,800587,400589,500589,800588,300

$4,702,590

146

147


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,

147

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

148


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


(As of 09/30/04)



2005 5.8000 $3,105,000 $2,605,595 $5,710,5952006 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 $45,720,000 $17,471,500 $63,191,500


SALES TAX REVENUE REFUNDING BONDSSERIES 1993

Dated: April 1, 1993(Unaudited)


REFUNDED BY:Escambia County, Florida, SalesRevenue Refunding Bonds, Series 2002.

Tax

AGENTS:Registrar — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,

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


Orlando, FL 32802-3631Paying Agent — SunTrust Bank, Trust andInvestment Services Group, PO Box 3631,Orlando, FL 32802-3631, (407) 237-4085

2004 — 2015 as scheduled


Bond YearEnding

January 1

%Interest

RateTotal

Principal Interest Debt Service

20052006200720082009201020112012201320142015

TOTALS

5.80005.80005.80005.80005.80005.80005.80005.80005.80005.80005.8000

$3,105,0003,280,0003,460,0003,655,0003,860,0004,085,0004,325,0004,570,0004,835,0005,120,0005,425,000

$45,720,000

$2,605,5952,437,9252,257,5252,065,4951,860,8151,860,7951,407,9501,157,100

892,040611,610314,650

$17,471,500

$5,710,5955,717,9255,717,5255,720,4955,720,8155,945,7955,732,9505,727,1005,727,0405,731,6105,739,650

$63,191,500

148

ECONOMIC INDICATORS (Unaudited)

ECONOMIC INDICATORS

(Unaudited)

(Unaudited)

Year Escambia County Florida United States1995 $16,899 $22,665 $23,0631996 $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 $24,092

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

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

YEARS

DO

LL

AR

S

Escambia County Florida United States

149

$35,000

PER CAPITA INCOME - COMPARISON

$30,000 1\/—/\

$25,000

$20,000

I /—'/— 4M

DOLL

ARS

$15,000

$10,000

$5,000

$01995 1996 1997 1998 1999 2000 2001 2002 2003 2004

YEARS

+Escambia County +F|orida — —United States

Egg!1995199619971998199920002001200220032004

(Unaudited)

Escambia County Florida United States$16,899 $22,665 $23,063$18,509 $23,833 $24,169$18,639 $24,795 $25,298$19,253 $25,922 $26,482$21,638 $27,124 $27,332$22,441 $26,884 $26,885$24,487 $30,164 $30,404$25,359 $31,322 $31,529$26,230 $32,479 $32,653$21,295 $23,862 $24,092

Source: Pensacola Area Chamber of Commerce (www.pensacolachambercom) in conjunction withUniversity of West Florida Haas Center for Business Research and Economic Development

149

(Unaudited)

Industry Employees % of TotalServices 52,800 29.00%Information, Financial Activities, and Professional Services 32,600 17.91%Government 29,300 16.09%Retail Trade 20,100 11.04%Agricultural and Fishing 19,948 10.96%Natural Resources, Mining, and Construction 11,300 6.21%Manufacturing 7,400 4.06%Wholesale Trade 5,400 2.97%Transportation, Warehousing, and Utilities 3,200 1.76%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation)(www.labormarketinfo.com)

EMPLOYMENT BY INDUSTRY IN ESCAMBIA COUNTY

29%

18%

16%

11%

11%

6%

4%3% 2%

Services

Information, Financial Activities, andProfessional Services

Government

Retail Trade

Agricultural and Fishing

Natural Resources, Mining, andConstruction

Manufacturing

Wholesale Trade

Transportation, Warehousing, andUtilities

150

EMPLOYMENT BY INDUSTRY INESCAMBIA COUNTY

3% 2%

11%

11%

16%

UServices

llnformation, Financial Activities, andProfessional Services

UGovernment

URetaiI Trade

lAgriculturaI and Fishing

UNatural Resources, Mining, andConstruction

lManufacturing

UWholesale Trade

lTransportation, Warehousing, andUtilities

Source:

(Unaudited)

Industry Emgloyees % of TotalServicesInformation, Financial Activities, and Professional ServicesGovernmentRetail TradeAgricultural and FishingNatural Resources, Mining, and ConstructionManufacturingWholesale TradeTransportation, Warehousing, and Utilities

Labor Market Statistics (Florida Agency for Workforce Innovation)(www.Iabormarketinfocom)

150

52,800 29.00%32,600 17.91%29,300 16.09%20,100 11.04%19,948 10.96%11,300 6.21%7,400 4.06%5,400 2.97%3,200 1.76%

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 139,641,000 7,545,000 5.1%Florida 8,037,000 395,000 4.7%Escambia County 126,158 4,551 3.5%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept., 2004)www.labormarketinfo.com/laus

UNEMPLOYMENT RATE

5.1%

4.7%

3.5%

United States Florida Escambia County

151

UNEMPLOYMENT RATE

3.5%

5.1%

4.7%

EIUnited States IFlorida ElEscambia County

(Unaudited)

Location Employment Unemployment Unemployment RateUnited States 139,641,000 7,545,000 5.1%Florida 8,037,000 395,000 4.7%Escambia County 126,158 4,551 3.5%

Source: Labor Market Statistics (Florida Agency for Workforce Innovation) (Sept, 2004)www.labormarketinfo.com/laus

151

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

Year Index Level Rank (out of 67)1995 95.11 331996 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 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

88.00

90.00

92.00

94.00

96.00

98.00

100.00

102.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Escambia County

152

FLORIDA PRICE LEVEL INDEX

102.00

100.00

98.00

96.00 /

94.00 \A /

92.00

90.00

88.00 I . . .1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

+Escambia County

(Population Weighted Average = 100.00)

(Unaudited)Escambia County

M Index Level Rank (out of 67)1995 95.1 1 331996 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 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.b|s.gov)The 2003 Florida Price Level Index, Florida Department of Education (www.firn.edu/doe/fefp)

152

(Per $1,000)

(Unaudited)

Year Florida Escambia County Escambia / Florida1995 $177,448,027,000 $2,952,818,000 1.66%1996 $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 Not available at the time of this publication.

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

1995 1996 1997 1998 1999 2000 2001 2002 2003

Escambia County


$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

1995 1996 1997 1998 1999 2000 2001 2002 2003

Florida

153

$300,000,000,000

$250,000,000,000

$200,000,000,000

$150,000,000,000

$100,000,000,000

$50,000,000,000

$01995


1996 1997 1998 1999 2000 2001 2002 2003

$4,000,000,000


$3,000,000,000

$2,000,000,000

$1,000,000,000

$0

1995 1996 1997 1998 1999 2000 2001

. Escambia County

2002 2003

Esau1995199619971998199920002001200220032004

(Per $1,000)

(Unaudited)

Florida Escambia County$177,448,027,000 $2,952,818,000$188,509,273,000 $3,125,296,000$173,600,000,000 $3,077,864,000$183,800,000,000 $3,120,950,400$196,000,000,000 $3,195,358,300$207,409,799,600 $3,389,615,300$217,304,369,500 $3,389,946,900$228,751 ,266,4OO $3,421 ,082,300$235,060,576,500 $3,582,899,500

Not available at the time of this publication.

Source: Local Government Financial Information Handbook (www.fcn.state.fl.us/lcir)

153

Escambia / Florida1.66%1.66%1.77%1.70%1.63%1.63%1.56%1.50%1.52%

(Unaudited)

Year Arrivals Departures1995 554,730 550,5971996 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 740,608 737,998

Source: Pensacola Municipal Airport

VISITORS BY AIR

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Arrivals Departures

154

VISITORS BY AIR

800,000

700,000 —

600,000 *

i500,000 - —

400,000 7 *

300,000 - —

200,000 7 *

100,000 - —

O 7 | i i | i | i i | i

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

iArrivals El Departures

(Unaudited)

fl Arrivals Degartures1995 554,730 550,5971996 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 740,608 737,998

Source: Pensacola Municipal Airport

154

(Unaudited)

Escambia/Items Florida Escambia Florida

Lodging 35,590 398 1.12%Restaurants 43,167 644 1.49%Hotel/Motel Rooms 1,567,861 21,878 1.40%Restaurant Seats 3,541,079 55,373 1.56%

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

Florida

Escambia

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

Florida

Escambia

155

60,00055,00050,00045,00040,00035,00030,00025,00020,00015,00010,0005,000

COMPARISON OF LODGING AND RESTAURANTS

Lodging Restaurants

I FloridaI Escambia

6,000,0005,500,0005,000,0004,500,0004,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000

500,000

COMPARISON OF LODGING AND RESTAURANT UNITS/SEATS

0Hotel/Motel Rooms Restaurant Seats

Florida

I Escambia

Source:

(Unaudited)

Items Florida EscambiaLodging 35,590 398Restaurants 43,167 644Hotel/Motel Rooms 1,567,861 21,878Restaurant Seats 3,541,079 55,373

Department of Business and Professional RegulationDivision of Hotels and Restaurants - Bureau of Licensurewww.myfloridaoom/dbgr

155

Escambia/Florida

1.12%1.49%1.40%1.56%

(Unaudited)County of

Age Florida Age Escambia0-17 3,910,318 % of Population 22.12% 0-17 70,396 % of Population 22.81%

18-64 10,648,594 % of Population 60.23% 18-64 196,752 % of Population 63.75%

65 + 3,120,312 % of Population 17.65% 65 + 41,486 % of Population 13.44%

Source: (http://www.state.fl.us/edr/population/) (Updated: 04/2004)

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

156

70.00%

AGE OF POPULATION

60.00%

50.00%

40.00%

30.00%

20.00% -—

10.00%

0.00%

0-17 18-64 65+

UFIorida ElEscambia

Source:

(DA9.047 3,910,318

18-64 10,648,594

65 + 3,120,312

% of Population

% of Population

% of Population

(Unaudited)

Florida Agg22.12% 0-17

60.23% 18-64

17.65% 65 +

(http://www.state.fl.us/edr/populationl) (Updated: 04/2004)

156

County ofEscambia

70,396 % of Population



22.81%

63.75%

13.44%

Documents

SEPTEMBER30,2004 FORTHEFISCALYEARENDED COUNTY OF …public.clerk.co.escambia.fl.us/Clerk/forms/cafr/CAFR_2004.pdf · ii 223 Palafox Place ! Pensacola, Florida 32502-5845 (850) 595-4845