WALTON COUNTY FLORIDA · WALTON COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended September 30, 2016 Prepared by the Office of the Clerk of Circuit Court

WALTON COUNTYFLORIDA

COMPREHENSIVEANNUAL

FINANCIAL REPORTFISCAL YEAR ENDED SEPTEMBER 30, 2016

WALTON COUNTY, FLORIDA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

for the fiscal year ended

September 30, 2016

Prepared by the Office of the Clerk of Circuit Court and County Comptroller

WALTON COUNTY, FLORIDA

PRINCIPAL OFFICERS

BOARD OF COUNRY COMMISSIONERS

Sara Comander Chair District 4 Cecilia Jones Vice-Chair District 2 Willie Chapman Commissioner District 1 Bill Imfeld Commissioner District 3 Cindy Meadows Commissioner District 5 Tax Collector Sheriff Rhonda Skipper Michael A. Adkinson, Jr. Property Appraiser Supervisor of Elections Patrick Pilcher Bobby Beasley

Clerk of the Circuit Court Alex Alford

INTRODUCTORY SECTION

TABLE OF CONTENTS

LETTER OF TRANSMITTAL

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

ORGANIZATIONAL CHART

WaltonCounty,FloridaComprehensiveAnnualFinancialReport

TableofContents

II

I. IntroductorySection

LetterofTransmittal 16CertificateofAchievementForExcellenceinFinancialReporting 7OrganizationalChart 8

II. FinancialSection

IndependentAuditors'Report 911ManagementsDiscussionandAnalysis 1223

BASICFINANCIALSTATEMENTS

GovernmentWideFinancialStatementsStatementofNetPosition 2425StatementofActivities 26FundsFinancialStatementsBalanceSheetGovernmentalFunds 27ReconciliationoftheBalanceSheetofGovernmentalFundstoStatementofNetPosition 28StatementofRevenues,ExpendituresandChangesinFundBalanceGovernmentalFunds 29ReconciliationoftheStatementofRevenues,ExpendituresandChangesinFundBalancesofGovernmentalFundstotheStatementofActivities 30StatementofRevenues,ExpendituresandChangesinFundBalanceBudgetandActual

GeneralFund 3133 CountyTransportation 34

FineandForfeiture 35 TouristDevelopment 36

SolidWasteLandfill 37 BuildingDepartment 38


TableofContents

IIII

StatementofNetPositionProprietaryFund 39StatementofRevenues,ExpensesandChangesinNetPositionProprietaryFund 40StatementofCashFlowsProprietaryFund 41StatementofFiduciaryNetPositionAgencyFunds 42NotestoFinancialStatements 4389

REQUIREDSUPPLEMENTARYINFORMATION

PostEmploymentBenefitsPlanScheduleofFundingProgress(OPEB) 90ScheduleofEmployersProportionateShareoftheNetPensionLiabilityFloridaRetirementSystemsPensionPlan 91ScheduleofEmployerContributionsFloridaRetirementSystemsPensionPlan 92ScheduleofEmployersProportionateShareoftheNetPensionLiabilityHealthInsuranceSubsidyProgram 93ScheduleofEmployerContributionsHealthInsuranceSubsidyProgram 94NotestoRequiredSupplementaryInformationSchedules 95

COMBININGANDINDIVIDUALFUNDSTATEMENTSANDSCHEDULES

DescriptionofNonmajorGovernmentalFunds 9697CombiningBalanceSheetNonmajorGovernmentalFunds 98102CombiningStatementofRevenues,ExpendituresandChangesinFundBalanceNonmajorGovernmentalFunds 103107SchedulesofRevenues,ExpendituresandChangesinFundBalanceBudgetandActualDebtServiceFund,CapitalProjectsFundandBudgetedNonmajorGovernmentalFundsSpecialRevenueFunds:

MosquitoControl 108HousingandUrbanDevelopment 109SHIPGrant 110NorthWaltonMosquitoControlDistrict 111


TableofContents

IIIIII

ImperialLakesMSBU 112RecreationPlat 113DaughetteMSBU 114CourtTechnology 115RecordModernization 116LocalOptionGasTax 117CriminalJusticeEducation 118Sidewalk 119E911 120CourtFines 121CrimePreventionTrust 122LawEnforcementAutomation 123TitleIVD 124ClerksFine&Forfeiture 125MSBUVarious 126

DebtServiceFunds:Highway331Bridge 127

CapitalProjectsFunds: TaxIncrementFinancing 128 CapitalProjects 129

MossyHeadIndustrialParkCapitalProjectsFund 130

InfrastructureImprovementsCapitalProjectsFund 131

FiduciaryFunds:

DescriptionofFiduciaryFunds 132CombiningStatementofFiduciaryNetPositionAgencyFunds 133134CombiningStatementofChangesinAssetsandLiabilitiesAgencyFunds 135137


TableofContents

IVIV

CapitalAssetsUsedintheOperationofGovernmentalFunds CapitalAssetSchedulesDescription 138 SchedulebySource 139 SchedulebyFunctionandActivity 140 ScheduleofChangesbyFunctionandActivity 141III. StatisticalSection Descriptions 142

FinancialStatementInformation

GovernmentWideExpensesandRevenues 143

GeneralGovernmentalExpendituresbyFunction 144GeneralGovernmentalRevenuesbySource 145ScheduleofNetPositionandChangesinNetPosition 146FundBalances,GovernmentalFunds 147

ChangesinFundBalanceGovernmentalFunds 148

OtherInformation

PropertyTaxLeviesandCollections 149SpecialAssessmentsCollections 150AssessedandEstimatedActualValueofTaxableProperty 151PropertyTaxRatesDirectandOverlappingGovernments 152RatioofOutstandingDebtbyType 153

RatioofNetGeneralBondedDebttoAssessedValueandNetBondedDebtPerCapita 154SpecialAssessmentBondCoverageMSBUDriftwoodEstates 155RatioofAnnualDebtServiceExpendituresofGeneralBondedDebttoTotalGeneralGovernmentalExpenditures 156

BondCoverage 157

DemographicStatistics 158


TableofContents

VV

OperatingIndicatorsbyFunction/Program 159PrincipalEmployers 160PrincipalPropertyTaxpayers 161PropertyValue,ConstructionandBankDeposits 162CapitalAssetsbyFunction/Program 163FulltimeEquivalentGovernmentWideEmployeesbyFunction 164

ScheduleofInsuranceinForce 165

IV. ComplianceSection

IndependentAuditorsReports 166169ScheduleofExpendituresofFederalAwardsandStateFinancialAssistance 170172NotestoScheduleofExpendituresofFederalAwardsandStateFinancialAssistance 173174ScheduleofFindingsandQuestionedCosts 175179SummaryScheduleofPriorAuditFindingsforFederalAwards 180SummaryScheduleofPriorAuditFindingsforStateFinancialAssistance 181ScheduleofReceiptsandExpendituresofFundsRelatedtotheDeepwaterHorizonOilSpill 182IndependentAccountantsReportonanExaminationConductedinAccordancewithAICPAProfessionalStandards,Section601,RegardingComplianceRequirementsinAccordancewithChapter10.550,RulesoftheAuditorGeneralandSection218.415,FloridaStatutes 183IndependentAccountantsReportonanExaminationConductedinAccordancewithAICPAProfessionalStandards,Section601,RegardingComplianceRequirementsinAccordancewithChapter10.550,RulesoftheAuditorGeneralandSections365.172(10)and365.173(2)(d),FloridaStatutes 184ManagementLetter 185187ManagementsResponseandCorrectiveActionPlan 188189


TableofContents

VIVI

V. FinancialStatementsandComplianceReportsForConstitutionalOfficers

ClerkoftheCircuitCourt 190226PropertyAppraiser 227247TaxCollector 248275SupervisorofElections 276301

Sheriff 302334

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March 13, 2017 To the Honorable Members of the Board of County Commissioners and Citizens of Walton County: We are pleased to present the Comprehensive Annual Financial Report (CAFR) of Walton County, Florida for the fiscal year ended September 30, 2016. This report was prepared in accordance with generally accepted accounting principles by the Clerk of Courts & County Comptroller. Responsibility for both the accuracy of the presented data, and the completeness and fairness of the presentation, including all disclosures, rests with the Clerk of Courts & County Comptroller as Chief Financial Officer of Walton County. The Clerk of Courts & County Comptroller, through the Finance Department, is responsible for establishing and maintaining internal controls to provide reasonable, but not absolute assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, the reliability of financial records for preparing financial statements, and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. It is within this framework that we believe the Countys internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. We believe the data as presented is accurate in all material respects; 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 user of these financial statements to gain a thorough understanding of the Countys financial activity have been included. Chapter 218.39 of the Florida Statutes requires a financial audit of all counties in the state be performed by independent certified public accountants. This requirement has been met for the fiscal year ended September 30, 2016 and the independent auditors report has been included in 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 Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. The standards governing single audit engagements require the independent auditor to report on the governments internal controls and compliance with legal requirements with special emphasis on the administration of federal awards. Information related to the single audit, including schedules of federal awards and state financial assistance and independent auditors reports on

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the internal control structure and compliance with requirements applicable to federal financial assistance, are included in the compliance section of this report. Governmental accounting and auditing principles require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Managements Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in combination with it. Walton Countys MD&A can be found immediately following the independent auditors report. County Organization. Walton County encompasses 1,066 square miles with a population of 62,943. There are three incorporated cities within Walton County: DeFuniak Springs, Freeport, and Paxton. The County provides a number of services to its citizens, including police and fire protection, emergency medical services, health and social services, and cultural and recreation programs. Walton County operates under a commission/administrator form of government with a governing board consisting of five county commissioners who are elected by the citizens of Walton County from at-large districts for staggered four-year terms. Each commission member must meet district residency requirements. In addition to the Board of County Commissioners, there are five elected constitutional officers: The Clerk of the Circuit Court & County Comptroller, Property Appraiser, Sheriff, Supervisor of Elections, and Tax Collector. The Walton County Board of County Commissioners exercises varying degrees of budgetary control, but not administrative control, over the activities of the constitutional officers. The Property Appraiser, Sheriff, and Supervisor of Elections operate their respective offices as budget officers with funding provided by the Board of County Commissioners in the form of operating subsidies. In return, each budget officer is responsible for the collection of revenues within their jurisdictional area, and for the subsequent remittance of such collection to the Board. The Clerk of Courts & County Comptroller and the Tax Collector operate as fee officers. Fee officers are authorized to retain revenues generated within their offices for the purpose of defraying the cost of operations. All excess fees available at the end of the fiscal year are remitted back to the Board of County Commissioners, except for the excess fees received by the court system which are remitted to the Florida Department of Revenue. Formal budgetary integration is employed as a management control device during the year. Constitutional officers funded by the Board and all county departments must submit their budget requests to the Office of Management and Budget (OMB) by June 1st of each year. After budget workshops are conducted with each department and constitutional officers, a proposed budget is submitted to the public by Board resolution and public hearings are held to obtain comments from the citizenry. A last public hearing is then held and the final budget is adopted. Walton County follows the laws of Florida regarding the control, adoption and amendment of the budget during each fiscal year; however, the County Administrator approves all departmental budgetary changes by means of a signed budget transfer form. The Board of County Commissioners approves all motions made for inter-divisional transfers and increases in the total budget for a division that occurs due to unanticipated grants or after a public hearing for special expenditures that need to be made from reserves. Local Economy. Located in the Panhandle of Florida, tourism and its related industries continue to fuel the local economy; however, the County realizes the need to broaden economic opportunities by attracting more diversified businesses and jobs. While the majority of Walton County citizens are employed in the service or government sector, the need for employment diversity has never been more critical than it is now. The opening of the Mossy Head Industrial Park in 2013-14 has added to our employment base and offers our citizens more employment

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options. Several tenants have opened a location in the industrial park, including Loves Travel Stops and Country stores, Empire Truck Sales, and Southern Tire Mart. Ultimately, Walton Countys high quality of living serves as a great attraction for both individuals and their families. Our commitment to responsible growth furthers that opportunity. While the economy continues to grow at a modest rate, there were some bright spots from our local economy. The September 2016 unemployment rate for Walton County was 4.3% which is 10% below the federal and state unemployment rate. The beaches of South Walton are an integral part of the local economy with an annual economic impact of approximately $3.2 billion according to research conducted for the Walton County Tourist Development Council (TDC). Visitors to Walton County are primarily drawn here by our world class beaches and by the abundance of choices in both retail and dining. The number of visitors to our area has continued to increase over the years, tourist development taxes (TDT) collected for 2016 topped the $21 million mark for the first time. The increase in collections can be attributed to aggressive marketing of the destination by the TDC and an increase in enforcement activities by the office of the Walton County Clerk of Courts. We expect TDT collections in 2017 to be slightly higher as the economy continues to improve and fuel prices remain low. In the last decade, the real estate market has been our hardest hit sector. Recently, however; the real estate market has begun to stabilize. Real property values increased 4.86% in 2013, increased 9.51% in 2014, increased 11.72% in 2015 and increased 24.63% in 2016. Overall, real property values have decreased 0.36% in the last ten years. We expect an increase in 2017 as the economy begins to level off and home inventories begin to move. The biggest concern for our citizenry in recent times has been the rate of foreclosure. Over the last year, foreclosure case filings in Walton County dropped by 8.97% from 2015. We anticipate a slight decrease in 2017. Long-term financial planning. Walton County has obtained 315 acres of land in the Mossy Head area that is in a prime location bordering Interstate 10 to the south and State Road 285 and US Highway 90 to the north. Additionally, the CSX rail line has a main track which runs along the entire northern boundary. The site has sufficient land to accommodate larger operations which few sites within a fifty mile radius have available. The intended use of this property has been to develop a mixed-use commercial/industrial park and to supply employment opportunities for the substantial population growth that is predicted for the northern part of the county. Specific businesses that will be targeted include manufacturing and distribution, and research and development companies. In 2014, Loves Truck Stops became the first company to purchase and open a business in the Mossy Head Industrial Park. Subsequently, several other business have invested in the property at the site including Brigman Properties, Empire Truck Service and Sales, and Southern Tire Mart. Walton County will continue to target specific businesses to include manufacturing and distribution, and research and development companies. Full development of the commerce park cannot occur without sufficient facilities to treat and dispose/reuse the wastewater generated by the occupants. In fiscal year 2014, a project was completed connecting an underutilized package plant at the Dixie RV Superstore, southwest of the Industrial Park, to the underutilized package plant at the Mossy Head School, northeast of the Park. Water and wastewater infrastructure traverses the Park and allows for wastewater flows to be shifted back and forth between the two package plants providing additional capacity and allow current and prospective tenants to access water and wastewater infrastructure up to a certain capacity.

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In 2014, the State of Florida approved a budget appropriation that greatly benefited the marketability of the Industrial Park. The $3 million was appropriated for infrastructure costs at the site including roadway infrastructure and associated storm-water management facilities, expansion of water and wastewater infrastructure, underground utilities for the site, and a landscaped entrance area into the Park. Additionally, a 250,000 gallon per day packaged concrete wastewater treatment facility was constructed at the park. As the current wastewater system reaches capacity, the new facility will allow Walton County to link Mossy Head Industrial Park to the existing water sewer system and serve the Mossy Head Industrial Park, Mossy Head Elementary School, residential areas and commercial facilities in the Mossy Head area. Ultimately, development of this park will diversify the Countys economic base from the tourism oriented jobs in the southern part of the county and provide employment opportunities that will improve the standard of living for all residents of Walton County. Relevant financial policies. For fiscal year 2016 (2015 millage rate), the Walton County Board of County Commissioners (Board) adopted a budget that showed no increase in the general county millage rate. The Boards adopted millage rate of 3.636 mills is a decrease of 5.00% from the 2006 general county millage rate. The Board moved quickly to control spending during the 2016 budgeting process due to a slight increase in projected revenues. Several departments are still being looked at for consolidation and a hiring freeze continues from past years on a limited basis. Additionally, merit increases were eliminated. The 2017 budget will continue the trend of past budgets with minimal growth projected in both revenues and expenses. The Walton County Investment Committee monitors the Countys investment portfolio in accordance with the Countys written investment policy. Investment earnings are used to offset any projected revenue shortfalls in the budget. In 2016, Walton Countys investment portfolio had a rate of return of 0.97% In 2012, the State of Florida Department of Transportation (FLDOT) offered Walton County $102 million if the County contributed $75 million for the four-laning of the Clyde B. Wells Bridge on US Highway 331. Additionally, the FLDOT agreed to four-lane the rest of US Highway 331 to Interstate 10 if the $75 million match was made. The Board of County Commissioners decided to hold a referendum on increasing the sales tax in Walton County by a half-cent. In May of 2012, the voters of Walton County approved the half-cent sales tax increase. Funding was then secured for the match and the monies were transferred to the State of Florida. After receiving bids much lower than expected for the bridge construction, the State of Florida refunded $50 million to Walton County. These monies were immediately used to pay down the $75 million loan and the remaining $25 million was refinanced at a much lower rate. In 2015, the State of Florida refunded an additional $7,227,657 which when combined with sales tax collections enabled Walton County to pay off the loan on August 26, 2015. The half-cent sales tax was allowed to sunset on December 31, 2015. Major initiatives. The four-laning of U.S. Highway 331 has been a priority of the County Commissioners for a number of years. Safety concerns are paramount as this roadway is the only north-south hurricane evacuation route in Southern Walton County. However, due to the high cost of construction, the project will be completed in segments. The first segment expanded U.S. Highway 331 to four lanes between the U.S. Highway 98 intersection and the southern end of the Clyde B. Wells Bridge at Choctawhatchee Bay. Safety and drainage improvements, new sidewalks and bicycle lanes, and new traffic signals were also included in

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this project. Total cost of this segment of the project was $21 million. Funding for this 2.093 mile segment was provided by the Florida Department of Transportation. Segment two is the construction of a two-lane addition to the Clyde B. Wells Bridge over Choctawhatchee Bay. Construction began in February of 2014 with an estimated completion date of March 2018. Total cost of this segment is projected to be $118 million. Funding for this 2.274 mile addition will be provided by multiple sources. Walton County contributed $17.8 million to this project through a bank financing arrangement and the remaining $100 million will be provided by the Florida Department of Transportation. Segment three is the construction of two additional lanes from just north of the Clyde B. Wells Bridge to just south of State Road 20. Construction was completed in 2016. Total cost of this segment is projected to be over $100 million which also includes design, right-of-way acquisition and mitigation expenses. Funding for this 4.697 mile segment will be provided by the Florida Department of Transportation. Segment four totaling 4.961 miles is the construction of two additional lanes from State Road 20 to Owls Head Road. The timetable for final construction of this segment has yet to be determined. Funding for this segment will be provided by the Florida Department of Transportation. Segment five totaling 4.204 miles is the construction of two additional lanes from Owls Head Road to Edgewood Circle. This project will be constructed in two phases with the first phase completed in 2013 and the second phase to begin construction in 2014. Total cost of this segment is projected to be over $70 million which also includes design, right-of-way acquisition and mitigation expenses. Walton County was awarded a Local Agency Participation Grant which funded $6.924 million of the construction cost with a local match of $2.672 million. The remaining funding will be provided by the Florida Department of Transportation. Segment six totaling 4.673 miles is the construction of two additional lanes from Edgewood Circle to Interstate 10. Total cost of this segment is projected to be over $90 million which would include design, right-of way acquisition and mitigation expenses. The timetable for construction of this segment has yet to be determined but funding will be provided by the Florida Department of Transportation. Construction of an 1800 square foot addition to the County Administration was completed in 2016. Continued construction of the Sheriffs Sub-station at the Mossy Head Industrial Park is the only planned construction for 2017. Completion of this building is slated for the summer of 2017. In 2009, the permitting process began on the restoration of the 12.9 mile stretch of beaches at Seagrove, Blue Mountain, Inlet, and Dune Allen. The permitting process for this federal project can take several years to complete. The approximate cost of this restoration is estimated to be between $60 and $70 million. The restoration will be paid for with tourist development taxes and federal and state funds should they become available. At present, this project is on hold pending further review by the Board of County Commissioners. Awards. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Walton County, Florida for its comprehensive annual financial report for the fiscal year ended September 30, 2015. This was the fifteenth consecutive year that Walton County has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This

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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 that our current comprehensive annual financial report continues to meet the Certificate of Achievement Programs requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements. This Comprehensive Annual Financial Report is a result of the tremendous effort and dedication given by the Finance Department of the Clerk of Courts & County Comptroller of Walton County. Your hard work is evident in this report. Thank you! We would also like to thank the staff of the Office of Management and Budget for their cooperation and assistance during this process. Finally, we would like to thank the accounting firm of Carr, Riggs & Ingram, LLC and specifically Hilton Galloway, Keith Hundley and Tyler Dunaway for their contribution to the publication of this document.

AlexAlfordClerkofCourts&CountyComptroller

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WaltonCounty,FloridaOrganizationalChart

Board of County

Commissioners

County Attorney

County Administrator

Deputy County Administrator (Operations)

Public Safety

Probation Emergency Response

Risk Management and Safety

Public Works

Public Works Department Shop/Fleet

Facilities Maintenance Landfill

Environmental Soil Conservation

Mosquito Control

Community Development

Building Planning and Development

Code Compliance

Parks and Recreation

Deputy County Administrator

(Administration)

Administration and

BCC SupportHR

Public Information Technology

Finance/OMB Purchasing

Grants GIS/IT

Library Extension Services

Discretionary MSBUs

HUD Veterans

Tourist Development

Director

FINANCIAL SECTION

INDEPENDENT AUDITORS REPORT

MANAGEMENTS DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS

COMBINING AND INDIVIDUAL FUND STATEMENTS

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INDEPENDENTAUDITORS'REPORTHonorableMembersoftheBoardofCountyCommissionersWaltonCounty,FloridaReportontheFinancialStatementsWe have audited the accompanying financial statements of the governmental activities, thediscretelypresentedcomponentunit,eachmajorfund,theaggregateremainingfundinformation,andtheproprietaryandfiduciaryfundtypesofWaltonCounty,Florida(theCounty),asofandforthe year ended September 30, 2016, and the related notes to the financial statements,whichcollectivelycomprisetheCountysbasicfinancialstatementsaslistedinthetableofcontents.ManagementsResponsibilityfortheFinancialStatementsManagementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsinaccordancewithaccountingprinciplesgenerallyaccepted in theUnitedStatesofAmerica; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparationandfairpresentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.AuditorsResponsibilityOur responsibility is to express opinions on these financial statements based on our audit.WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof America and the standards applicable to financial audits contained in Government AuditingStandards,issuedbytheComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditorsjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherdue to fraud or error. Inmaking those risk assessments, the auditor considers internal controlrelevant to theentityspreparationand fairpresentationof the financial statements inorder todesign audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressinganopinionontheeffectivenessoftheentitysinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedand the reasonableness of significant accounting estimates made by management, as well asevaluatingtheoverallpresentationofthefinancialstatements.Webelieve that the auditevidencewehaveobtained is sufficient and appropriate toprovide abasisforourauditopinions.

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OpinionsInouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,therespective financial position of the governmental activities, the discretely presented componentunit,eachmajorfund,theaggregateremainingfundinformation,theproprietaryfundtypeandthefiduciaryfundtypeoftheCounty,asofSeptember30,2016andtherespectivechangesinfinancialpositionandwhereapplicable,cashflowsthereof,andtherespectivebudgetarycomparisonfortheGeneralFund,CountyTransportationFund,FineandForfeitureFund,TouristDevelopmentFund,Solid Waste Landfill Fund and Building Department Fund thereof for the year then ended inconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.OtherMattersRequiredSupplementaryInformationAccounting principles generally accepted in the United States of America require that themanagements discussion and analysis, on pages 12 through 23, postemploymentbenefitsplanscheduleof fundingprogressonpage90, scheduleofemployersproportionate shareof thenetpension liabilityFloridaRetirementSystemsPensionPlan,scheduleofemployercontributionsFloridaRetirementSystemsPensionPlan, scheduleofemployersproportionate shareof thenetpension liability Health Insurance Subsidy Program and schedule of employer contributions HealthInsuranceSubsidyProgram,onpages91through95,bepresentedtosupplementthebasicfinancial statements. Such information, although not a part of the basic financial statements, isrequiredbytheGovernmentalAccountingStandardsBoard,whoconsidersittobeanessentialpartof financial reporting for placing the basic financial statements in an appropriate operational,economic, or historical context. We have applied certain limited procedures to the requiredsupplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethodsofpreparingtheinformationandcomparing the information forconsistencywithmanagements responses toourinquiries,thebasicfinancialstatements,andotherknowledgeweobtainedduringourauditofthebasic financial statements. We do not express an opinion or provide any assurance on theinformationbecausethe limitedproceduresdonotprovideuswithsufficientevidencetoexpressanopinionorprovideanyassurance.OtherInformationOur auditwas conducted for the purpose of forming opinions on the financial statements thatcollectivelycomprisetheCountysbasicfinancialstatements.Theintroductorysection,combiningand individual nonmajor fund financial statements and schedules, capital assets used in theoperationofgovernmental fundsschedulesandstatisticalsectionsarepresented forpurposesofadditionalanalysisandarenotarequiredpartofthebasicfinancialstatements.TheaccompanyingscheduleofexpendituresoffederalawardsandstatefinancialassistanceispresentedforpurposesofadditionalanalysisasrequiredbyTitle2U.S.CodeofFederalRegulations(CFR)Part200,UniformAdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederalAwards,andtheFlorida Single Audit Act; and the schedule of receipts and expenditures of funds related to theDeepwaterHorizonoilspillisrequiredbyChapter10.550,LocalGovernmentalAudits,RulesoftheAuditorGeneraloftheStateofFlorida,andneitherscheduleisarequiredpartofthebasicfinancialstatements.

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The combining and individual nonmajor fund financial statements and schedules, capital assetsused in theoperationofgovernmental funds schedules, the scheduleofexpendituresof federalawards and state financial assistance, and the schedule of receipts and expenditures of fundsrelatedtotheDeepwaterHorizonoilspillaretheresponsibilityofmanagementandwerederivedfromandrelatedirectlytotheunderlyingaccountingandotherrecordsusedtopreparethebasicfinancialstatements.Suchinformationhasbeensubjectedtotheauditingproceduresappliedintheauditofthebasicfinancialstatementsandcertainadditionalprocedures,includingcomparingandreconciling such information directly to the underlying accounting and other records used toprepare thebasic financialstatementsor to thebasic financialstatementsthemselves,andotheradditional procedures in accordance with auditing standards generally accepted in the UnitedStatesofAmerica.Inouropinion,thecombiningandindividualnonmajorfundfinancialstatementsandschedules,capitalassetsusedintheoperationofgovernmentalfundsschedules,thescheduleofexpendituresoffederalawardsandstatefinancialassistance,andthescheduleofreceiptsandexpenditures of funds related to theDeepwaterHorizon oil spill are fairly stated in allmaterialrespectsinrelationtothebasicfinancialstatementsasawhole.The introductory and statistical sections have not been subjected to the auditing proceduresappliedintheauditofthebasicfinancialstatementsand,accordingly,wedonotexpressanopinionorprovideanyassuranceonthem.OtherReportingRequiredbyGovernmentAuditingStandardsInaccordancewithGovernmentAuditingStandards,wehavealso issuedourreportdatedMarch13,2017onourconsiderationoftheCountys internalcontroloverfinancialreportingandonourtestsofitscompliancewithcertainprovisionsoflaws,regulations,contracts,andgrantagreementsandothermatters.Thepurposeof that report is todescribe the scopeofour testingof internalcontroloverfinancialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopiniononinternalcontroloverfinancialreportingoroncompliance.Thatreportisanintegralpartofanauditperformed inaccordancewithGovernmentAuditingStandards inconsideringtheCountysinternalcontroloverfinancialreportingandcompliance.

CARR,RIGGS&INGRAM,L.L.C.CertifiedPublicAccountantsMarch13,2017

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ManagementsDiscussionandAnalysisThissectionofthereportprovidesreaderswithanarrativeoverviewandanalysisofthefinancialactivitiesofWaltonCountyforthefiscalyearendedSeptember30,2016.Weencouragereaderstoconsidertheinformationpresentedhereinconjunctionwiththeletteroftransmittal,beginningonpage1,andtheCountysfinancialstatements.FinancialHighlights

WaltonCountysprimarygovernmentassetsanddeferredoutflowsof resourcesexceededliabilities and deferred inflows of resources (net position) by $271,890,107 for fiscal year2016 as compared to $253,804,624 for fiscal year 2015, as restated. Unrestricted netpositionmay be used tomeet theCountys ongoing obligations to citizens and creditors.WaltonCountysunrestrictednetpositionatSeptember30,2016,amountedto$42,653,123,adecreaseof$6,940,485.

The Countys total primary government net position for the 2016 fiscal year increased

$18,085,483overfiscalyear2015,asrestated. TheCountysgovernmentalfundsreportedacombinedendingfundbalanceof$121,732,204

at September 30, 2016, an increase of $2,052,219 in comparisonwith the prior year, asrestated.

AtSeptember30,2016, theGeneralFundbalancewas$23,350,661 (ofwhich$16,610,115

wasunassigned),anincreaseof$1,467,166from2015. TheCountysoutstandingnotespayableandotherlongtermdebtdecreasedby$1,299,936

duringfiscalyear2016.OverviewoftheFinancialStatementsThisdiscussionandanalysis is intendedtoserveasan introductiontotheCountysbasicfinancialstatements. The Countys basic financial statements consist of governmentwide financialstatements, fund financial statements, and notes to the financial statements. This report alsocontainsadditionalsupplementaryinformationfollowingthebasicfinancialstatementsthemselves.GovernmentwideFinancialStatementsGovernmentwide financial statements,which consist of the Statement ofNet Position and theStatement ofActivities, are designed to provide readerswith a broad overview of the Countysfinances inamannersimilartoaprivatesectorbusiness. TheStatementofNetPositionpresentsinformationontheCountysassetsplusdeferredoutflowslessitsliabilitiesanddeferredinflowsatSeptember30,2016.Thedifferencebetweentheseassetsanddeferredoutflowsandliabilitiesanddeferredinflowsisreportedasnetposition.Overtime,increasesordecreasesinnetpositionmayserve as a useful indicator of whether the financial position of the County is improving ordeteriorating.

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TheStatementofActivitiespresents informationshowinghowtheCountysnetpositionchangedduring the fiscal year. All changes innetpositionare reportedas soonas theunderlyingeventgivingrisetothechangeoccurs,regardlessofthetimingofrelatedcashflows.Thus,revenuesandexpensesarereportedinthisstatementforsomeitemsthatwillonlyresultincashflowsinfuturefiscalperiods(suchasuncollectedtaxesorearnedbutunusedvacationleave).Governmental activities of the County include general government, public safety, physicalenvironment,transportation,economicenvironment,humanservices,cultureandrecreation,andinterestonlongtermdebt.Thegovernmentwide financial statements includeboth theCounty itself (knownas theprimarygovernment) and Florida Community Services Corporation, a legally separate component unitformedtoacquireandimproveexistingwaterdistributionfacilitiesinsouthernWaltonCounty.Thegovernmentwidefinancialstatementsbeginonpage24.FundFinancialStatementsA fund isagroupingof relatedaccountsused tomaintaincontrolover resources thathavebeensegregated for specific activities or objectives. Walton County, like other state and localgovernments,uses fund accounting to ensure anddemonstrate compliancewith financerelatedlegal requirements. All fundsof theCountycanbedivided into threecategories: governmentalfunds,proprietary(internalservice)funds,andfiduciaryfunds.GovernmentalFundsGovernmentalfundsaccountforessentiallythesamefunctionsreportedasgovernmentalactivitiesin the governmentwide financial statements. However, unlike the governmentwide financialstatements,governmental fund financial statements focusonnearterm inflows andoutflowsofspendableresources,aswellasonbalancesofspendableresourcesavailableattheendofthefiscalyear. Such information may be useful in evaluating a governments nearterm financingrequirements.Because the focus of governmental funds is narrower than that of governmentwide financialstatements, it isuseful to compare the informationpresented for governmental activities in thegovernmentwidefinancialstatements.Bydoingso,readersmaybetterunderstandthelongtermimpactof thegovernmentsnearterm financingdecisions. Both thegovernmental fundbalancesheet and the governmental fund statement of revenues, expenditures, and changes in fundbalances provide reconciliation to facilitate this comparison between governmental funds andgovernmentalactivities.TheCountymaintains43individualgovernmentalfunds.Informationispresentedseparatelyinthegovernmental funds balance sheet and in the governmental funds statement of revenues,expenditures, and changes in fund balances for the General, County Transportation, Fine andForfeiture,TouristDevelopment,SolidWasteLandfill,andBuildingDepartmentfunds,allofwhichareconsideredtobemajorfunds.Datafromtheother37governmentalfundsarecombinedintoasingle,aggregatedpresentation. Individual funddata foreachof thesenonmajorgovernmental

14

fundsisprovidedintheformofcombiningstatementsinthesupplementaryinformationsectionofthisreport.TheCountyadoptsanannualappropriatedbudgetforeachofitsgovernmentalfunds.Abudgetarycomparison statement has been provided for the major funds to demonstrate budgetarycompliance.Thegovernmentfundsfinancialstatementsbeginonpage27.ProprietaryFundsTheCountymaintainsandpresentsonetypeofproprietaryfund,aninternalservicefund,startingonpage39.TheCountyusestheinternalservicefundtoreportfundedandaccruedcompensatedabsences.FiduciaryFundsFiduciary funds are used to account for resources held for the benefit of parties outside thegovernment. Fiduciary funds are not included in the governmentwide financial statementsbecausetheresourcesofthesefundsarenotavailabletosupporttheCountysownoperations.NotestotheFinancialStatementsThe notes provide additional information that is essential to a full understanding of the dataprovided in the governmentwide and fund financial statements. The notes to the financialstatementscanbefoundbeginningonpage43ofthisreport.OtherInformationThis report presents certain required supplementary information on pages 90 to 95 concerningWaltonCountysprogressinfundingitsobligationtoprovidepensionsandotherpostemploymentbenefitstoitsemployees.GovernmentWideFinancialAnalysisComparativedataforfiscalyearsendingSeptember30,2016and2015areshownbelow:NetPositionGovernmentalActivitiesForthefiscalyearendedSeptember30, 2015(1) 2016Assets Currentandotherassets $ 135,420,073 $ 139,341,104Capitalassets 211,847,873 231,574,541Totalassets 347,267,946 370,915,645DeferredOutflowsofResources 18,247,008 38,376,753

15

LiabilitiesLongtermliabilitiesoutstanding 80,566,105 108,289,519Otherliabilities 14,019,774 16,256,155 Totalliabilities 94,585,879 124,545,674DeferredInflowsofResources 17,124,451 12,856,617NetPositionNetinvestmentincapitalassets 185,573,714 206,407,365Restricted 18,637,302 22,829,619Unrestricted 49,593,608 42,653,123 TotalNetPosition $ 253,804,624 $ 271,890,107(1) Certainbalancesheet itemshavebeenrestatedduetoapriorperiodadjustment. Detailsare

includedinNote21totheFinancialStatementonpages88and89.Asnotedearlier,netpositionmayserveovertimeasausefulindicatorofagovernmentsfinancialposition.TheoverallfinancialpositionoftheCountycontinuedtoimproveinbothfiscalyears2016and 2015. The net position for fiscal years ending September 30, 2016 and 2015, as restated,increased$18,085,483and$38,586,713,respectively.A portion of Walton Countys net position (15.7%) represents unrestricted net position of$42,653,123,whichmaybeusedtomeettheCountysongoingobligationstocitizensandcreditors.Aportionof theCountysnetposition (7.3%atSeptember30,2015and8.4%atSeptember30,2016)representsresourcesthatarededicatedorsubjecttoexternalrestrictionsonhowtheymaybeused.Theoveralldollarincreaseinrestrictednetpositionwas$4,192,317forfiscalyear2016.TheincreaseinrestrictednetpositionisprincipallyduetothecollectionofsalestaxesrestrictedforimprovementstotheChoctawhatcheeBayBridge. During fiscalyear2015,higherthanprojectedcollectionsofthehalfcentsalestaxallowedthebridge loantobepaid infull. PerFloridaStatuteandtheordinanceenactingthehalfcentsalestax,thistaxwassunsetonDecember31,2015.The$6,177,040restricted fordebtserviceontheStatementofNetPositionrepresentstheremainingfundscollectedandavailableforimprovementsdirectlyrelatedtothisproject.TheCountysinvestmentincapitalassetssuchasland,buildings,andequipment,asapercentageofnet position, amounts to 73.1% and 75.9% at September 30, 2015 and 2016, respectively, andaccountsforthelargestportionoftheCountysnetposition.Theincreaseof$20,833,651in2016overfiscalyear2015isprimarilyduetothepurchaseoflandbytheTouristDevelopmentfundtobeutilizedaspublicbeachesandparkingforpublicnaturecenters.Theseassetvaluesarepresentedlessanyoutstandingdebtrelatedtotheacquisitionandaccumulateddepreciationofthoseassets.TheCountyusescapitalassetstoprovideservicestothecitizensandconsequentlytheseassetsarenot available for future spending. Although the investment in capital assets is reported net ofrelateddebt, it shouldbenoted that the resourcesneeded to repay thisdebtmustbeprovidedfromothersourcessincethecapitalassetsthemselvescannotbeusedtoliquidatetheseliabilities.

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ChangesinNetPositionGovernmentalActivitiesSeptember30, 20152016 Revenues Programrevenue:Chargesforservices $ 10,471,312 $ 12,818,417Operatinggrantsandcontributions 4,349,574 4,958,896Capitalgrantsandcontributions 14,218,252 4,576,423Generalrevenues:Propertytaxes 44,521,882 49,609,053Othertaxes 64,188,914 62,022,896Other 8,887,811 9,599,941

Totalrevenues 146,637,745 143,585,626ExpensesGeneralgovernment 25,430,143 25,692,294Publicsafety 39,889,287 46,892,084Physicalenvironment 11,190,946 9,916,761Transportation 15,552,252 21,217,707Economicenvironment 15,889,294 17,123,638Humanservices 1,874,924 2,283,853Culture/recreation 4,029,171 795,753CapitalProjects 708,323Interestonlongtermdebt 1,071,059 869,730

Totalexpenses 114,927,076 125,500,143Excessbeforespecialitemandpriorperiodadjustment 31,710,669 18,085,483SpecialItem 7,227,657 PriorPeriodAdjustment (351,613) Increaseinnetposition 38,586,713 18,085,483Beginningnetposition 215,217,911 253,804,624Endingnetposition,asrestated(Note21) $ 253,804,624 $ 271,890,107Cash and cash equivalents increased $6,203,574, predominately due to higher than anticipatedsalesandtouristdevelopmenttaxcollections,offsetbycontinuedexpendituresfortheconstructionofroadandbridgecapitalprojects.AcomparisonofcurrentunrestrictedassetsascomparedtocurrentunrestrictedliabilitiescanbeagoodindicationoftheCountysabilitytomeetitscurrentandexistingoperationalresponsibilities.

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Theratioforbothyearsisasfollows:ComparisonofCurrentUnrestrictedAssetsandLiabilitiesGovernmentalActivitiesSeptember30, 2015 2016 Currentunrestrictedassets $ 131,424,422 $ 133,436,490Currentunrestrictedliabilities 16,805,602 19,113,333Ratioofcurrentassetstocurrentliabilities7.826.98The County continues to maintain healthy ratios as noted above which indicates more thanadequatecashflowstoWaltonCounty.

GovernmentalActivities

Governmental activities increasedWalton Countys net position by $18,085,483 in 2016. Keyelementsofthisincreaseareasfollows:Total revenues were down $3,052,119, or 2.08% from the prior year, due the combination ofseveral items. 2016sawadecrease incapitalgrantsandcontributionsof$9,641,829due to thereceipt of additional State funding in fiscal year 2015 for infrastructure and the wastewatertreatmentplantatNorthwestFloridaCommercePark inMossyHead,combinedwithdecreases in2016 in other State and Federal funding for road and bridge projects. Other taxes decreased$2,166,018due to thesunsetof thehalfcent taxenacted for the loan to fund fourlaningof theChoctawhatcheeBayBridge,offsetbyincreasesinTouristDevelopmentandothersalestaxes.Thedecreases incapitalgrantsandcontributionsandothertaxeswerepartiallyoffsetby increases inpropertytaxrevenuesof$5,087,171attributabletohigheroverallpropertyvaluesandincreasesinchargesforservicesof$2,347,105duemostlytopaymentsmadetotheSheriffsOfficeforhousingotherstateandlocalinmates.Expensestotaled$125,500,143,representinganoverall9.2%increase.Thelargestincreaseswerein public safety $7,002,797 and transportation $5,665,455, offset primarily be a decrease inculture/recreation$3,233,418.Theincreaseinpublicsafetycanbeattributedtooverallbudgetedincreases in spending in the fine and forfeiture fund, alongwith additional spending related tohousing additional state and local inmates. The transportation increase is due to increasedcapitalizedexpenditurespartiallyoffsetbyadecrease inoperatingexpenditures. Thedecrease inculture/recreation is due to the purchase of land in fiscal year 2015 for a new sports complexlocatedinSouthWaltonCounty.FinancialAnalysisoftheCountysFundsAs noted earlier, the County uses fund accounting to ensure and demonstrate compliancewithfinancerelatedlegalrequirements.

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GovernmentalFundsThe focus of the Countys governmental funds is to provide information on nearterm inflows,outflows,andbalancesofspendableresources.SuchinformationisusefulinassessingtheCountysfinancingrequirements.Inparticular,unassignedfundbalancemayserveasausefulmeasureofagovernmentsnetresourcesavailableforspendingattheendofthefiscalyear.

TheCountysgovernmentalfundsreportedcombinedendingfundbalancesof$119,679,985attheendoffiscalyear2015,asrestated,and$121,732,204attheendoffiscalyear2016. Thesewereincreasesovertheprioryearof$13,512,428forfiscalyear2015and$2,052,219forfiscalyear2016.TheunassignedGeneralFundbalancesof$15,603,519atSeptember30,2015and$16,610,115atSeptember30,2016wereavailable forspendingat theCountysdiscretion. Governmental fundsheld restricted, committed, or assigned amounts totaling $103,863,430 in 2016 to reflect thevarious constraints placed on those resources for future use, as well as $1,258,659 for nonspendableamountsreflectingitemssuchasinventoryandprepaiditems.MajorFundInformation

GeneralFund

CountyTransportation

FineandForfeiture

FiscalYear2016Revenuesandothersources 41,448,324$ 24,181,742$ 32,342,134$Expendituresandotheruses 39,981,158 23,878,064 31,453,016

Increaseinfundbalance 1,467,166$ 303,678$ 889,118$


Increase(decrease)infundbalance 1,279,994$ (40,621)$ 246,518$

TouristDevelopment

SolidWasteLandfill

BuildingDepartment


Increase(decrease)infundbalance (8,190,867)$ 826,902$ 1,234,552$


Increaseinfundbalance 6,588,271$ 233,508$ 1,321,846$

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GeneralFundTheGeneralFund isthechiefoperatingfundoftheCounty. ItaccountsformanyoftheCountyscoreservices,suchasplanning,recreation,libraryservices,andfirerescueservices.AtSeptember30,2016, the total fundbalance in theGeneralFundwas$23,350,661ofwhich$16,610,115wasunassigned. As ameasure of the General Funds liquidity, itmay be useful to compare bothunassigned fund balance and total fund balance to total fund expenditures. Unassigned fundbalance represents47.78%of total2016expenditures,while total fundbalance is67.16%of thesame amount. For fiscal year 2015, unassigned fund balance represented 47.40% of totalexpenditures,whiletotalfundbalancewas66.48%ofthesameamount.Total revenues in theGeneralFund increased4.6%,drivenprimarilyby increases inproperty taxrevenuesandan increasedhalfcentsalestaxdistributionfromtheStateofFlorida. Expendituresincreased 5.6%,mostly due to the initial payment related to the Countys Broadband Initiative,whichisanefforttobringbroadbandcapabilitiestoenhanceeducation,publicsafetyandeconomicdevelopmentwithinWaltonCounty. The increasecanalsobeattributedtoan increase inhealthinsurance costsof9.9% for the2016 fiscalyear,andhigherFireRescuedivision costs related toequipmentandvehiclepurchasesandhigheroperatingcostsassociatedwith the first fullyearofthe Countys operation of Freeport Fire department. When the changes in revenues andexpendituresarecombinedwithtransferactivity,theGeneralFundexperiencedanet increase infundbalanceof$1,467,166,ascomparedtoafiscalyear2015netincreaseof$1,279,994.OtherMajorGovernmentalFundsThemajor governmental funds table also discloses information regarding the other fivemajorgovernmentalfundsoftheCounty.TheCountyTransportationFundaccountsforadvalorem,motorfueltaxes,andvariousgrantstofinanceroadandbridgeconstructionandmaintenance.Statestatutesgovernhowthesefundsaretobeused. Fiscalyear2016showedadecreaseof$4,120,253 inrevenuesfromfiscalyear2015.Theprimaryfactorscontributingtothisdecreasewerea$6,271,324decreaseinintergovernmentalrevenues from State and Federal grant funding during fiscal year 2016, partially offset by anincrease in property tax revenues related to both higher property values and a highermillageallocationtothefund.Overallexpendituresdecreased$5,551,890duetoacorrespondingdecreasein grant expenditures equal to the decrease in grant revenues, offset by the increased healthinsurance costdiscussedpreviouslyand completionofworkonnongrant funded transportationprojects.TheFineandForfeitureFundaccounts foradvalorem tax revenues, finesand forfeitures,specialassessments,andvariousgrantsusedtofinancelawenforcement.Theincreasedrevenuesinfiscal2016canbeattributedtoanincreaseinpropertytaxrevenuesduetohigheroverallpropertyvaluesforfiscalyear2016over2015andincreasedrevenuesfromhousingotherStateandlocalinmates.Increasedexpenditurescanbeattributedtooperationandmaintenanceofthejailfacilitiesusedtohousetheadditionalinmates,theadditionofsixdeputypositionsinfiscalyear2016andtherelatedcapitalequipmentcostsforthosepositions,andtheincreaseinhealthinsurancecosts.

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TheTouristDevelopmentCouncil(TDC)Fundaccountsforthelocaloptiontouristdevelopmenttaxarising from activities related to the tourist industry. Its use is governed by State statute forpromotion of the tourism industry, as well as beach maintenance and renourishment. Theincreased revenues in 2016 over 2015 can be attributed to a continued increase in TouristDevelopment Tax collections. Operating costs increased considerablyover fiscal year2015,duemostlytopurchasesoflandtotaling$16,341,507.Thesehigherrevenuesandexpendituresresultedinanetdecreaseof$8,190,867totheTDCsrestrictedfundbalance.ThesefundsarenotavailablefortheCountytouseforgeneralgovernmentoperation.TheSolidWasteLandfillFundutilizesaonecentsmallcountysales tax topay foroperationofalandfillandprovidegarbageandyarddebriscollectiontoCountyresidences. Revenues fromthissalestaxincreased$1,714,328forfiscalyear2016asaresultofbothoverallgrowthandincreasedtourism in the County. The balance of the fund is restricted, committed or assigned to fundremainingcostsoncapitalprojects,acquisitionof landfor landfillexpansion, landfillclosurecosts,economicdevelopmentandroadpaving.Within the Solid Waste Landfill Fund, deposits are made to the funds other cash and cashequivalents account for the purpose of complyingwith federal and state laws and regulationsrelatedtofundingtheminimumestimatedlandfillclosureandpostclosurecosts.ThisrequirestheCounty toannuallydeposit funds inan interestbearingaccount for thepurposeof funding thesecosts.Thisamountisshownasarestrictedassetwithinthefundandwas$1,154,692atSeptember30,2015.Thiswasincreasedto$1,156,612atSeptember30,2016.The Building Department Fund is used to account for fees and assessments levied on buildingactivities tohelpensurecompliancewithFloridaBuildingCode. Overall, the totalpermits issued(includingSingleFamilyDwellingandBuildingPermits) increased10.6% from2015 to2016. Theincreasedrevenuesfrom2015to2016aredirectlyattributabletothisincreasedactivitywithinthedepartment. Expenditureswithinthedepartment increased43.1%from2015to2016,withthreeprimaryfactorscausingthe increase. First,an initiativebegan infiscalyear2016tomoveCountyrecordsintoacloudbasedstoragesystem.Theinitialcostsrelatedtoconvertingtheserecordstoanelectronicformatwerechargedin2016.Second,aformalcostallocationstudywasperformedin2015tocalculategeneraladministrativeoverheadcosts.ThecostsfortheBuildingDepartmentwerehigher thanhadbeenpreviouslycalculatedbyCounty staff,and2016was the firstyearoftheseincreasedcostsfortheBuildingDepartment.Finally,theBuildingdepartmentreplacedthreevehiclesutilizedforbuildinginspectionsduringfiscalyear2016.GeneralFundBudgetaryHighlightsDifferencesbetweentheGeneralFundsfiscalyear2016originalbudgetandfinalamendedbudgetwere an increase of $5,250,882 to Board of County Commissioner accounts. They can besummarizedasfollows:

o $2,199,813fornewgrantsandadditionstocapitalprojectsreceivedinFY2016o $1,350,000broughtforwardfortheCountysBroadbandInitiativeo $683,132rolledforwardfromfiscalyear2015forgrantsandprojectsnotcompletedinFY

2015o $665,410inleaseproceedsfortwoambulancesandatankerfortheFireRescuedivision

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o $126,477inunanticipatedrevenuesfromthelocalgovernmenthalfcentsalestaxduetohigherthananticipateddistributionsfromtheStateofFlorida

o $77,000broughtforwardtoconstructanadditiontotheCountyAdministrationbuildingtohousetheHumanResourcesdepartment

o $73,000 brought forward from BP Settlement funding for a Muscogee Nation landmanagementanddevelopmentprojecttopromoteaquafarmingandagritourism

o $62,050broughtforwardfromprioryear landsalesattheNorthwestFloridaCommerceParkinMossyHeadforexpendituresattheWastewaterTreatmentPlant

o $12,000 inunanticipatedprogram fees in theRecreationdepartmentdue to increasedparticipationinCountyrecreationprograms

o $1,500donatedbytheFloridaBarAssociationtofundaSummeremployeeintheCountyAttorneysoffice

o $500receivedasadonationfortheCoastalBranchLibraryActualGeneralFundexpenditureswere$5,627,280lessthanbudgeted.Theprimarycomponentofthatdifferenceconsistedof$3,396,449 ingrantandproject fundingnotexpended in thecurrentyearbutcarriedovertothenextfiscalyear.Alsocontributingtothisdifferencewasa$1,448,005reductioninpersonnelcostsduetothedelayedfillingofvacancies,$330,213budgetedbutunspenton statemandated health programs and juvenile justice costs, $157,500 in unspent budgetedcontingencyfunding,and$74,904encumberedbutnotyetexpendedformachineryandequipmentnotreceivedbyyearend.ActualGeneralFundrevenueswere$678,334lessthanbudgeted.PertheStatementofRevenues,Expenditures and Changes in Fund Balance, taxes receivedwere $601,224 less than budgeted.ThosetaxesconsistofAdValoremtaxesandtheCommunicationsServicesTax.Thestatementdoesnotconsiderthe5%discount($901,662)allowanceincludedprincipallyfortheearlyprepaymentofadvaloremtaxes.Whennettedagainstthatbudgetedallowance,thereisactually$300,438morerevenuethanbudgeted.Intergovernmental revenues are reported as $964,109 less than budgeted. This is primarilyattributabletounearnedgrantfundingof$2,131,932rolledintothenextfiscalyear,partiallyoffsetbyincreasesinLocalGovernmentHalfCentSalesTaxrevenue($879,405),StateofFloridaRevenueSharingdistributions($81,234),andPlanningrelatedfees, includingBeachVending,SpecialEvent,andBeachDogPermits($185,445)overtheamountsbudgeted.

Miscellaneous revenues exceeded projections by $832,076. Thismostly consists of a surplus of$955,555 for fees in excess of expenditures returned by the Constitutional Officers, offset bychargesforservicesgeneratedbytheConstitutionalOffices.CapitalAssetandDebtAdministrationTheCountys investment incapitalassetsfor itsgovernmentalactivitiesasofSeptember30,2015amounted to $211,847,873 (net of accumulated depreciation) and at September 30, 2016amountedto$231,574,541.Thisinvestmentincludescapitalassetssubjecttodepreciation,suchasinfrastructure,buildings,andequipmentaswellascapitalassetsnotsubjecttodepreciationsuchaslandandconstruction inprogress. Thetotal increase intheCountys investment incapitalassetsforthecurrentfiscalyearwas9.3%.

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Majorcapitaleventsduringthecurrentfiscalyearincludethefollowing: PurchaseofpropertiesbytheTouristDevelopmentfundduring2016totaling$16,341,507.

Thesepropertiesaretobeutilizedforpublicbeachesandparkingforpublicnaturecenters. Construction inprogressatSeptember30,2016consistedmostlyof$14,916,737 forroad

andbridgeandstormwaterinfrastructureprojects. Thenet increase inequipmentof$2,838,332 is reflectiveofcontinuingefforts to replace

FireRescueandPublicWorksvehiclesandcapitalequipmentthatweredelayedforseveralyearsduring theperiodsof lowerad valoremand salesandgas tax revenues from2009through2012.

CapitalAssets(NetofDepreciation)September30, 2015 2016Land $ 50,947,114 $ 67,449,869Buildings 51,610,673 50,262,044Infrastructure 63,401,662 71,148,030Improvementsotherthanbuildings 14,131,540 13,894,892Constructioninprogress 21,270,318 15,494,808Equipment 10,486,566 13,324,898Total $ 211,847,873 $ 231,574,541Additional informationon theCountys capitalassets canbe found inNote7onpage66of thisreport.

LongTermDebtAsreflectedinNote8tothefinancialstatements,theCountyhad$23,922,440innotespayableatSeptember30,2016,ofwhich$1,415,927isdueforrepaymentduringfiscalyear2017.September30, 20152016 NotespayableCapitalProjectsLineofCredit $ 25,290,415 $ 23,922,440BeachRenourishmentLoan 210,526 Total $ 25,500,941 $ 23,922,440Duringthecurrentfiscalyear,theCountysoutstandingnotespayabledecreasedby$1,578,501,or6.2%. The Beach Renourishment Loanwas paid in full during fiscal year 2016. The remainingdecreasesduringthecurrentyearwereattributabletonormaldebtserviceprincipalreductions.Additional informationontheCountys longtermdebtcanbefound inNote8onpage67ofthisreport.

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EconomicFactorsandNextYearsBudgetandRatesTheunemploymentratefortheCountyatSeptember30,2016was4.3%,downslightlyfrom4.5%atSeptember30,2015.Overallbuildingpermitactivitycontinuedtoimproveforfiscalyear2016,with2,569totalbuildingpermits issued, including 1,748 residential permits. 2,324 building permits, including 1,155residentialpermits,wereissuedforfiscalyear2015.ThesefiguresreflectbothnewhousingstartsandcommercialconstructionduringtheCountysfiscalyear.WaltonCountyspopulation increased3.7% fromthe fiscalyearendingSeptember30,2015,toatotalpopulationof62,943.Thegeneraladvaloremtaxrateforfiscalyear2016andtheupcoming2017fiscalyearremainedat3.6363mills.Total balance brought forward into the original fiscal year 2015 budget was $12,377,938.$3,885,000 was brought forward in the General Fund and $8,492,938 from all other funds.$8,525,809wasbroughtforwardintotheoriginalfiscalyear2016budget,with$2,247,879broughtforwardfromtheGeneralFundand$6,277,930fromallotherfunds.RequestforInformationThisfinancialreport isdesignedtopresentuserswithageneraloverviewoftheCountysfinancesand to demonstrate the Countys accountability. If you have questions concerning any of theinformationprovided inthisreportorneedadditional financial information,contact theCountysFinanceDirector at 176Montgomery Circle,DeFuniak Springs, Florida 32435, or theDirector ofAdministrativeServicesfortheClerkoftheCourt,P.O.Box1260,DeFuniakSprings,Florida32435.AdditionalinformationcanbefoundontheCountyswebsite:http://www.co.walton.fl.us.

BasicFinancialStatements

WaltonCounty,FloridaStatementofNetPosition

September30,2016

Seeaccompanyingnotestofinancialstatements.24

PrimaryGovernmentGovernmental Component

Activities Unit

AssetsCurrentassets

Cashandcashequivalents 69,325,693$ 11,737,963$Cashdesignatedforconstruction 21,163,220Investments 54,047,507 10,000,000Accountsreceivable,net 2,259,590 2,099,906Accountsreceivabledeveloperagreements,net 413,875Duefromothergovernments 6,955,143 145,253Inventory 639,196 3,180,728Prepaiditems 209,361 19,238Restrictedassets:Cashandcashequivalents 4,640,860 Assessmentsreceivable 853,011

Totalcurrentassets 138,930,361 48,760,183

NoncurrentassetsRestrictedcashDebtservicefund 5,071,003Renewalandreplacementfund 1,003,183Customer'sdeposits 1,805,757

Accountsreceivabledeveloperagreements,net 331,100Loansreceivable 410,743 Deposits 11,330Landandothernondepreciableassets 82,944,677 16,898,744Capitalassets,netofdepreciation 148,629,864 134,269,286

Totalnoncurrentassets 231,985,284 159,390,403

Totalassets 370,915,645 208,150,586

DeferredOutflowsofResourcesDeferredoutflowsrelatedtopension 38,376,753 Deferredlossesondebtrefundings 379,415

Totaldeferredoutflowsofresources 38,376,753 379,415

Continued

WaltonCounty,FloridaStatementofNetPositionContinued

September30,2016


PrimaryGovernmentGovernmental Component

Activities UnitLiabilitiesCurrentliabilities

Accountspayable 5,821,137$ 330,967$Accruedliabilities 2,687,395 114,475Accruedinterestpayable 226,324 Duetoothergovernments 1,880,955 Duetoindividuals 223,947 Deposits 3,711,230 Unearnedrevenue 1,705,167 Landfillclosurecosts 120,200 Compensatedabsences 959,649 Payablefromrestrictedassets: Accruedinterestpayable 422,793Bondspayable 1,768,000

Capitalleaseobligations 361,402 Notespayable 1,415,927 Totalcurrentliabilities 19,113,333 2,636,235

NoncurrentliabilitiesCustomerdeposits 1,805,757Notespayable 22,506,513 Capitalleaseobligations 883,334 Bondspayable 28,573,501Obligationfordeferredcompensation 395,480Netpensionliability 63,900,981Otherpostemploymentbenefitobligation 11,133,000 Landfillclosurecost 3,932,582 Compensatedabsences 3,075,931 218,209Totalnoncurrentliabilities 105,432,341 30,992,947

Totalliabilities 124,545,674 33,629,182DeferredInflowsofResourcesDeferredinflowsrelatedtopension 12,856,617

NetPositionNetinvestmentincapitalassets 206,407,365 121,205,944Restrictedfor:Debtservice 6,177,040 6,074,186Capitalprojects 2,530,939 Generalgovernment 1,733,494 Publicsafety 2,872,318 Transportation 8,817,128 Economicenvironment 302,277 Humanservices 396,423

Unrestricted 42,653,123 47,620,689

Totalnetposition 271,890,107$ 174,900,819$

WaltonCounty,FloridaStatementofActivities

FortheYearEndedSeptember30,2016

Seeaccompanyingnotestofinancialstatements.

Program

Chargesfor

Functions/Programs Expenses Services

PrimaryGovernmentGovernmentalActivities:Generalgovernment 25,692,294$ 2,954,381$Publicsafety 46,892,084 8,498,997Physicalenvironment 9,916,761 1,207,916Transportation 21,217,707 Economicenvironment 17,123,638 115,187Humanservices 2,283,853 20,800Culture/recreation 795,753 21,136Capitalprojects 708,323 Interestonlongtermdebt 869,730

Totalprimarygovernment 125,500,143$ 12,818,417$

ComponentUnitFloridaCommunityServicesCorporation 23,169,743$ 20,107,329$

GeneralRevenuesPropertytaxesGasolinetaxesSalestaxTouristdevelopmenttaxOthertaxesInvestmentearningsMiscellaneousGainondispositionofequipment

Totalgeneralrevenues

Changeinnetposition

TotalNetPositionbeginningPriorperiodadjustment

NetPositionbeginning,asrestated

TotalNetPositionending

26

PrimaryOperating Capital GovernmentGrantsand Grantsand Governmental Component

Contributions Contributions Activities Unit

772,025$ $ (21,965,888)$ $1,559,345 63,099 (36,770,643)

48,751 5,000 (8,655,094) 7,037 4,470,719 (16,739,951)

2,497,304 (14,511,147) 27,112 (2,235,941) 47,322 37,605 (689,690)

(708,323) (869,730)

4,958,896$ 4,576,423$ (103,146,407)

$ 1,330,365$ (1,732,049)

49,609,053 5,918,651

32,072,589 21,758,228 2,273,428 1,129,859 29,620

7,722,363 6,076,748747,719 93,020

121,231,890 6,199,388

18,085,483 4,467,339

254,156,237 170,433,480(351,613)

253,804,624 170,433,480

271,890,107$ 174,900,819$

Net(Expense)RevenuesandChangesinNetPositionRevenues

WaltonCounty,FloridaBalanceSheet

GovernmentalFundsSeptember30,2016


County Fineand Tourist

General Transportation Forfeiture DevelopmentAssetsCashandcashequivalents 13,335,824$ 7,667,509$ 1,917,540$ 24,346,248$Investments 11,965,114 5,925,819 832,516 18,815,711Accountsreceivable,net 271,581 276 1,368 1,899,330Duefromothergovernments 1,804,070 1,563,256 750,221 Duefromotherfunds 937,424 12,054 398,746 2,050,232Inventory 162,291 476,905 Prepaiditems 137,309 215 2,320 53,391Restrictedassets:Cashandcashequivalents Assessmentsreceivable

Loansreceivable 410,743 Totalassets 29,024,356$ 15,646,034$ 3,902,711$ 47,164,912$

LiabilitiesAccountspayable 1,322,387$ 1,461,576$ 811,144$ 1,297,717$Accruedliabilities 1,289,891 388,253 673,839 101,324Duetoothergovernments 152,362 41,609 Duetoindividuals Deposits 672,633 3,038,597 Duetootherfunds 2,050,752 949,280Unearnedrevenue 185,670 1,421,752

Totalliabilities 5,673,695 6,351,787 1,484,983 2,348,321

DeferredInflowsofResourcesUnearnedrevenueonspecialassessments

FundBalanceNonspendable 711,723 477,119 53,691Restricted 1,174,581 8,817,128 2,417,728 Committed 32,596,010Assigned 4,854,242 12,166,890Unassigned:Generalfund 16,610,115

Totalfundbalance 23,350,661 9,294,247 2,417,728 44,816,591

Totalliabilities,deferredinflowsofresourcesandfundbalance 29,024,356$ 15,646,034$ 3,902,711$ 47,164,912$

27

Solid Other TotalWaste Building Governmental GovernmentalLandfill Department Funds Funds

4,284,500$ 3,551,846$ 13,496,166$ 68,599,633$3,311,267 2,745,038 10,452,043 54,047,508

87,035 2,259,5902,444,621 392,975 6,955,143

554 3,399,010 639,196

15,313 813 209,361

1,156,612 3,484,247 4,640,859 853,011 853,011 410,743

11,212,313$ 6,296,884$ 28,766,844$ 142,014,054$

558,569$ 566$ 369,175$ 5,821,134$31,146 59,227 143,715 2,687,395

1,522,558 164,426 1,880,955 223,947 223,947 3,711,230 398,978 3,399,010 97,746 1,705,168

2,112,273 59,793 1,397,987 19,428,839

853,011 853,011

15,313 813 1,258,6591,156,612 9,572,230 23,138,279709,686 6,237,091 3,435,413 42,978,200

7,218,429 13,507,390 37,746,951

16,610,115

9,100,040 6,237,091 26,515,846 121,732,204

11,212,313$ 6,296,884$ 28,766,844$ 142,014,054$

WaltonCounty,FloridaReconciliationoftheBalanceSheetofGovernmentalFunds

totheStatementofNetPositionSeptember30,2016


DifferencesinamountsreportedforgovernmentalactivitiesintheStatementofNetPosition:FundbalancesTotalgovernmentalfunds 121,732,204$

853,011

231,574,541

(4)

Deferredoutflowsrelatedtopension 38,376,753Deferredinflowsrelatedtopension (12,856,617)Notespayable (23,922,440)Capitalleaseobligations (1,244,736)Accruedinterestpayable (226,324)Landfillclosurecosts (4,052,782)Netpensionliability (63,900,981)Otherpostemploymentbenefitobligations (11,133,000)

(3,309,518) (82,269,645)

Netpositionofgovernmentalactivities 271,890,107$

Compensatedabsences,netofInternalServiceFund,$726,062

Assessments receivable are not available to pay currentperiod expenditures and therefore are deferred in thegovernmentalfunds.

Capital assets used in government activities are not financialresourcesandthereforearenotreportedatthefundlevel.

Certain liabilities are not due and payable in the currentperiodandthereforearenotreportedinthefunds.

Differencesduetorounding

WaltonCounty,FloridaStatementofRevenues,ExpendituresandChangesinFundBalance

GovernmentalFundsFortheYearEndedSeptember30,2016


County Fineand Tourist

General Transportation Forfeiture Development

RevenuesTaxes 17,757,008$ 5,963,275$ 26,316,129$ 21,758,228$Licensesandpermits 312,955 Intergovernmental 12,389,320 7,092,616 811,089 19,600Chargesforservices 3,521,796 4,152,375 21,687Finesandforfeitures 39,661 53,832 Investmentearnings 223,211 107,522 80,199 440,884Miscellaneous 4,261,108 1,237,044 123,268 1,276,499

Totalrevenue 38,505,059 14,400,457 31,536,892 23,516,898

Expenditures Current

Generalgovernment 20,501,123 Publicsafety 10,610,370 31,284,408 Physicalenvironment 392,654 Transportation 23,878,064 Economicenvironment 265,766 31,495,833Humanservices 1,708,021 Culture/recreation 1,050,974

Capitalprojects DebtservicePrincipal 221,631 151,622 210,526Interest 16,483 16,986 1,406Totalexpenditures 34,767,022 23,878,064 31,453,016 31,707,765

ExcessRevenueOver(Under)Expenditures 3,738,037 (9,477,607) 83,876 (8,190,867)

OtherFinancingSources(Uses)Transfersin 2,283,174 9,781,285 620,242 Transfersout (5,214,136) Issuanceofdebt 660,091 185,000

Totalotherfinancingsources(uses) (2,270,871) 9,781,285 805,242

Netchangeinfundbalance 1,467,166 303,678 889,118 (8,190,867)

FundBalanceaspreviouslystated 21,883,495 8,990,569 1,528,610 53,007,458

PriorPeriodAdjustment

FundBalancebeginning,restated 21,883,495 8,990,569 1,528,610 53,007,458

FundBalanceending 23,350,661$ 9,294,247$ 2,417,728$ 44,816,591$

29

Solid Other TotalWaste Building Governmental GovernmentalLandfill Department Funds Funds

19,552,505$ $ 5,920,639$ 97,267,784$ 2,573,555 2,886,510

48,751 4,738,361 25,099,737222,184 43,885 1,305,126 9,267,053

547,820 641,31316,631 51,389 210,022 1,129,858

345,041 67,499 2,293,758 9,604,217

20,185,112 2,736,328 15,015,726 145,896,472

1,982,203 22,483,326 1,501,776 918,226 44,314,780

9,862,801 2,019,870 12,275,325 23,878,064 2,519,907 34,281,506 526,012 2,234,033 131,328 1,182,302 1,234,476 1,234,476

1,367,975 1,951,754 818,903 853,778

9,862,801 1,501,776 11,518,900 144,689,344

10,322,311 1,234,552 3,496,826 1,207,128

5,214,136 17,898,837(9,495,409) (3,189,292) (17,898,837)

845,091

(9,495,409) 2,024,844 845,091

826,902 1,234,552 5,521,670 2,052,219

8,273,138 5,002,539 21,345,789 120,031,598

(351,613) (351,613)

8,273,138 5,002,539 20,994,176 119,679,985

9,100,040$ 6,237,091$ 26,515,846$ 121,732,204$

WaltonCounty,FloridaReconciliationoftheStatementofRevenues,Expendituresand

ChangesinFundBalanceofGovernmentalFundstotheStatementofActivities



DifferencesinamountsreportedforgovernmentalactivitiesintheStatementofActivities:Netchangeinfundbalancestotalgovernmentalfunds 2,052,219$

33,836,726

(14,076,157)

(33,901)

(845,091)

1,952,075

(46,760)

(16,273)

627,518

(3,543,582)

(1,434,000)

(387,291)

Changeinnetpositionofgovernmentalactivities 18,085,483$

Accrued landfill closure/post closure costs do no require the use ofcurrent financial resources and therefore are not reported asexpendituresinthegovernmentalfunds.

Assessment revenue is not collected for several months after yearendandisdeferredinthegovernmentalfunds.

Accrued interest expense reported in the Statement of Activities doesnot require the use of current financial resources and therefore is notreportedingovernmentalfunds.

Compensated absences reported in the Statement of Activities do notrequire the use of current financial resources and therefore are notreportedasexpendituresinthegovernmentalfunds.

Proceeds from the issuance of debt are reported as an other financingsource in governmental funds but as an increase of longterm liabilitiesintheStatementofNetPosition.

Capital outlay, reported as expenditures in governmental funds, areshownascapitalassetsintheStatementofNetPosition.

Depreciation expense on governmental capital assets is included in thegovernmentalactivitiesintheStatementofActivities.

Book value of assets sold or disposed of reported in the Statement ofActivities

Repayment of longterm debt is reported as an expenditure ingovernmental funds but as a reduction of longterm liabilities in theStatementofNetPosition.

Accrued other postemployment benefits do not require the use ofcurrent financial resources and therefore are not reported asexpendituresinthegovernmentalfunds.

Deferred outlfows related to pension liability, deferred inflows relatedto pension liability and changes in net pension liability do not requirethe use of current financial resources and therefore are not reported asexpendituresinthegovernmentalfunds.

WaltonCounty,FloridaGeneralFund

StatementofRevenues,ExpendituresandChangesinFundBalanceBudgetandActual


Seeaccompanyingnotestofinancialstatements. 31

VarianceWithFinalBudget

Original Final PositiveBudget Budget Actual (Negative)

RevenuesTaxes 18,358,232$ 18,358,232$ 17,757,008$ (601,224)$Licensesandpermits 210,000 210,000 312,955 102,955Intergovernmental 10,966,586 13,353,429 12,389,320 (964,109)Chargesforservices 3,418,500 3,430,500 3,521,796 91,296Finesandforfeitures 29,200 29,200 39,661 10,461Investmentearnings 373,000 373,000 223,211 (149,789)Miscellaneous 2,761,622 3,429,032 4,261,108 832,076

Totalrevenues 36,117,140 39,183,393 38,505,059 (678,334)

ExpendituresBoardofCountyCommissioners(BCC)Current GeneralGovernmentBoardofCountyCommissioners 5,308,994 7,637,040 6,328,704 1,308,336Comptroller 2,514,209 2,514,209 2,514,209 ClerkofCourtcircuitcourt 219,126 226,126 203,065 23,061ClerkofCourtcountycourt 69,156 69,156 67,130 2,026Courttechnology 180,900 180,900 105,248 75,652GISinformationservices 463,470 463,470 448,301 15,169PropertyAppraiser 257,200 257,200 199,496 57,704SupervisorofElections 738,988 900,313 762,580 137,733Humanresources 446,475 446,475 371,803 74,672Legalservices 680,303 681,803 637,792 44,011StateAttorney/PublicDefender 89,315 89,315 87,850 1,465Growthmanagementand comprehensiveplanning 2,201,091 2,226,091 1,945,111 280,980

Countyadministrator 1,008,737 1,008,737 957,903 50,834Financialandadministrativeservices 843,514 843,514 683,074 160,440Totalgeneralgovernment(BCC) 15,021,478 17,544,349 15,312,266 2,232,083

Continued


StatementofRevenues,ExpendituresandChangesinFundBalanceBudgetandActualContinued





PublicSafetyFirecoordination 9,886,321 10,714,106 9,688,575 1,025,531Paroleandprobation 361,171 361,171 293,566 67,605Emergencyoperationscenter 312,262 368,205 392,412 (24,207)Emergencymedicalservices 12,293 12,348 (55)Medicalexaminer 223,469 223,469 223,469

Totalpublicsafety 10,783,223 11,679,244 10,610,370 1,068,874

PhysicalEnvironmentExtensionservice 363,362 363,362 307,499 55,863Naturalresourceconservationservice 96,806 96,806 85,155 11,651

Totalphysicalenvironment 460,168 460,168 392,654 67,514

EconomicEnvironmentEconomicdevelopment 140,206 140,206 140,206 Veteranservices 128,518 128,518 125,560 2,958

Totaleconomicenvironment 268,724 268,724 265,766 2,958

HumanServicesHealthdepartment 1,820,520 1,820,520 1,622,421 198,099Communityservice 18,676 18,676 18,676 Mentalhealth 14,063 14,063 14,063 Welfare 35,750 35,750 39,642 (3,892)Developmentaldisabilities 13,219 13,219 13,219

Totalhumanservices 1,902,228 1,902,228 1,708,021 194,207

CulturalandRecreationLibrary 888,785 889,285 779,529 109,756Parksandrecreation 229,957 2,303,947 271,445 2,032,502

Totalculturalandrecreation 1,118,742 3,193,232 1,050,974 2,142,258

Continued


StatementofRevenues,ExpendituresandChangesinFundBalanceBudgetandActualContinued





ReservedforContingencies 400,000 157,500 157,500

DebtServicePrincipal 221,631 (221,631)Interest 16,483 (16,483)

Totaldebtservice 238,114 (238,114)

TotalexpendituresbyBCC 29,954,563 35,205,445 29,578,165 5,627,280

GeneralGovernmentConstitutionalOfficersClerkoftheCourts 921,025 (921,025)PropertyAppraiser 1,996,364 1,996,364 1,676,131 320,233TaxCollector 2,512,418 2,512,418 2,591,701 (79,283)

Totalexpendituresbygeneralgovernmentconstitutionalofficers 4,508,782 4,508,782 5,188,857 (680,075)

Totalexpenditures 34,463,345 39,714,227 34,767,022 4,947,205.

ExcessRevenuesOver(Under)Expenditures 1,653,795 (530,834) 3,738,037 4,268,871

OtherFinancingSources(Uses)Transfersin 2,214,124 2,283,174 2,283,174 Transfersout (5,214,136) (5,214,136) (5,214,136) Issuanceofdebt 660,091 660,091

Totalotherfinancingsources(uses) (3,000,012) (2,930,962) (2,270,871) 660,091

Netchangeinfundbalance (1,346,217) (3,461,796) 1,467,166 4,928,962

FundBalancebeginning 21,883,495 21,883,495 21,883,495


WaltonCounty,FloridaCountyTransportationSpecialRevenueFund






RevenuesTaxes 6,063,075$ 6,063,075$ 5,963,275$ (99,800)$Intergovernmental 2,441,000 21,444,162 7,092,616 (14,351,546)Investmentearnings 181,000 181,000 107,522 (73,478)Miscellaneous 403,500 996,813 1,237,044 240,231

Totalrevenues 9,088,575 28,685,050 14,400,457 (14,284,593)

ExpendituresCurrentTransportation 19,589,278 43,005,952 23,878,064 19,127,888

ExcessRevenuesOver(Under)Expenditures (10,500,703) (14,320,902) (9,477,607) 4,843,295

OtherFinancingSourcesTransfersin 9,781,285 9,781,285 9,781,285

Netchangeinfundbalance (719,418) (4,539,617) 303,678 4,843,295



WaltonCounty,FloridaFineandForfeitureSpecialRevenueFund






RevenuesTaxes 27,220,451$ 27,220,451$ 26,316,129$ (904,322)$Intergovernmental 307,500 336,150 811,089 474,939Chargesforservices 130,000 3,630,000 4,152,375 522,375Fineandforfeitures 60,000 60,000 53,832 (6,168)Investmentearnings 83,000 83,000 80,199 (2,801)Miscellaneous 382,271 724,873 123,268 (601,605)

Totalrevenues 28,183,222 32,054,474 31,536,892 (517,582)

ExpendituresCurrentPublicsafety

Sheriffdepartment 27,624,860 31,934,368 31,284,408 649,960Debtservice Principal 151,622 (151,622)Interest 16,986 (16,986)

Totalexpenditures 27,624,860 31,934,368 31,453,016 481,352

ExcessRevenuesOver(Under)Expenditures 558,362 120,106 83,876 (36,230)

OtherFinancingSourcesTransfersin 620,242 620,242Issuanceofdebt 185,000 185,000Totalotherfinancingsources 805,242 805,242

Netchangeinfundbalance 558,362 120,106 889,118 769,012


FundBalanceending 2,086,972$ 1,648,716$ 2,417,728$ 769,012$

WaltonCounty,FloridaTouristDevelopmentSpecialRevenueFund






RevenuesTaxes 19,240,000$ 19,240,000$ 21,758,228$ 2,518,228$Intergovernmental 1,069,106 19,600 (1,049,506)Chargesforservices 21,687 21,687Investmentearnings 400,000 400,000 440,884 40,884Miscellaneous 1,683,880 1,776,967 1,276,499 (500,468)

Totalrevenues 21,323,880 22,486,073 23,516,898 1,030,825

ExpendituresCurrentEconomicenvironment Touristdevelopment 23,513,637 43,976,030 31,495,833 12,480,197

DebtservicePrincipal 210,526 210,526 210,526 Interest 2,091 2,091 1,406 685

Totalexpenditures 23,726,254 44,188,647 31,707,765 12,480,882

ExcessRevenuesOver(Under)Expenditures (2,402,374) (21,702,574) (8,190,867) 13,511,707



WaltonCounty,FloridaSolidWasteLandfillSpecialRevenueFund






RevenuesTaxes 17,400,000$ 17,400,000$ 19,552,505$ 2,152,505$Intergovernmental 90,909 48,751 (42,158)Chargesforservices 130,000 130,000 222,184 92,184Investmentearnings 80,000 80,000 16,631 (63,369)Miscellaneous 354,000 354,000 345,041 (8,959)

Totalrevenues 17,964,000 18,054,909 20,185,112 2,130,203

ExpendituresCurrent PhysicalenvironmentGarbageandsolidwaste 10,368,591 11,256,272 9,862,801 1,393,471

ExcessRevenuesOverExpenditures 7,595,409 6,798,637 10,322,311 3,523,674OtherFinancingSourcesTransfersout (9,495,409) (9,495,409) (9,495,409)

Netchangeinfundbalance (1,900,000) (2,696,772) 826,902 3,523,674



WaltonCounty,FloridaBuildingDepartmentSpecialRevenueFund






RevenuesLicensesandpermits 1,222,725$ 1,552,736$ 2,573,555$ 1,020,819$Chargesforservices 30,000 30,000 43,885 13,885Investmentearnings 51,389 51,389Miscellaneous 67,499 67,499

Totalrevenues 1,252,725 1,582,736 2,736,328 1,153,592

ExpendituresCurrentPlanningandinspections 1,252,725 1,650,065 1,501,776 148,289

ExcessRevenuesOver (Under)Expenditures (67,329) 1,234,552 1,005,303



WaltonCounty,FloridaStatementofNetPosition

ProprietaryFundSeptember30,2016



InternalServiceFund

AssetsCashandcashequivalents 726,062$

LiabilitiesCurrentliabilitiesAccruedcompensatedabsences 111,025

NoncurrentliabilitiesAccruedcompensatedabsences 615,037

Totalliabilities 726,062

NetPosition $

WaltonCounty,FloridaStatementofRevenues,ExpensesandChangesinNetPosition

ProprietaryFundFortheYearEndedSeptember30,2016



InternalServiceFund

OperatingRevenuesChargesforservices 137,177$

ExpensesPersonalservices 137,177

Changeinnetposition

$

NetPositionending

NetPositionbeginning

WaltonCounty,FloridaStatementofCashFlows

ProprietaryFundFortheYearEndedSeptember30,2016



InternalServiceFund

CashProvidedby(Usedin)OperatingActivitiesFundingofcompensatedabsencesliability 137,177$Paymentsoncompensatedabsencesliability (89,975)

Netincreaseincashandcashequivalents 47,202

Cashandcashequivalentsatthebeginningoftheyear 678,860

Cashandcashequivalentsattheendoftheyear 726,062$

ReconciliationofChangeinNetPositiontoCashProvidedbyOperatingActivities

Changeinnetposition $

Increaseinliabilities:Compensatedabsencespayable 47,202

47,202$

CashProvidedby(Usedin)OperatingActivities

WaltonCounty,FloridaStatementofFiduciaryNetPosition

September30,2016


Agency Funds

AssetsCash 4,419,785$Receivables,net 991 Totalassets 4,420,776$

LiabilitiesDuetoothergovernments 1,212,883$Deposits 2,332,799Duetoindividuals 875,094

Totalliabilities 4,420,776$

Documents

WALTON COUNTY FLORIDA · WALTON COUNTY, FLORIDA COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended September 30, 2016 Prepared by the Office of the Clerk of Circuit Court