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					            Lee County, Florida
                  Financial Reports
                          For The

            Fiscal Year Ended September 30, 2009




                        Prepared By:

General Accounting Office, Finance & Records Department

     Clerk to Board of County Commissioners

                    Charlie Green
                                                       Lee County, Florida

                                                      FINANCIAL REPORTS

                                                 As of September 30, 2009


                                                     TABLE OF CONTENTS


Checklist...............................................................................................................................     A-1

Transmittal Letter .............................................................................................................             B-1

Comprehensive Annual Financial Report....................................................................                                    C-1

Auditors’ Letter(s) on Compliance and Internal Controls .................................                                                    D-1

Financial Assistance Report...........................................................................................                       E-1

Management Letter ............................................................................................................               F-1

Component Unit Financial Reports

    Clerk of Circuit Court................................................................................................                   G-1

    Property Appraiser .......................................................................................................               H-1

    Sheriff ..............................................................................................................................   I-1

    Supervisor of Elections .............................................................................................                    J-1

    Tax Collector ................................................................................................................           K-1
May 11, 2010


Mr. David W. Martin, Auditor General
Florida Auditor General’s Office
Local Government Audits/342
Claude Pepper Building, Room 401
111 West Madison Street
Tallahassee, Florida 32399-1450


Dear Mr. Martin:

We are pleased to submit two copies of the Lee County, Florida Comprehensive Annual Financial Report for the fiscal year ended
September 30, 2009, in addition to an electronic version.

The County’s Comprehensive Annual Financial Report was released March 16, 2010; however, the Financial Assistance Report
was not received from the external auditors until May 7, 2010. The management letter for the Board of County Commissioners
was received May 11, 2010. There were no suggestions/comments in this year’s management letter.


Sincerely,



Terry Mallow
Terry S. Mallow
General Accounting Manager

TM/rpt/

Attachments
Comprehensive Annual Financial
            Report
      Fiscal Year Ended September 30, 2009




            Lee County,
                  Florida
                    Lee County, Florida


Comprehensive Annual Financial Report
                                For the
                 Fiscal Year Ended September 30, 2009




                          Prepared by:
     General Accounting Office, Finance & Records Department



             Clerk to Board of County Commissioners

                           Charlie Green
                                               Lee County, Florida
                                        PRINCIPAL OFFICIALS
                                             As of September 30, 2009



                                                  Elected Officials
Board of County Commissioners, Port Commissioners:

        Commissioner, District 1 ………………………………………………Robert P. Janes


        Commissioner, District 2 ………………………………………………Brian Bigelow


        Commissioner, District 3 ………………………………………………Ray Judah                                                                 * **


        Commissioner, District 4 ………………………………………………Tammara Hall


        Commissioner, District 5 ………………………………………………Frank Mann


                                               Appointed Officials
   County Manager ……………………………………………………………Karen Hawes


   Lee County Attorney ……………………………………………………… David Owen


   Executive Director, Port Authority ……………………………………… Robert Ball


   Hearing Examiner(s) ……………………………………………………… Diana Parker
                                                                                              Richard Gescheidt




* Chairman for Board of County Commissioners
** Chairman for Board of Port Commissioners



Photographs provided by Ed Clement Photographic Services, Inc., Lee County Public Resources, Lee County Visitor & Convention Bureau,
Lee County Port Authority, Lee County Water & Wastewater System, Lee County Solid Waste System, Lee County Transportation
Facilities, and Lee County Transit.



                                                                ii
                                         Lee County, Florida
                  COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                         September 30, 2009

                                    TABLE OF CONTENTS



                                     Introductory Section
                                                                                                   PAGE
Letter of Transmittal …………………………………………………………………………………………                                            ix
Organizational Charts ………………………………………………………………………………………                                             xvi
Government Finance Officers Association Certificate of Achievement ………………………………                    xviii


                                        Financial Section
Independent Auditors' Report ……………………………………………………………………………                                          2
Management's Discussion and Analysis (unaudited) ……………………………………………………                               4

Basic Financial Statements
   Government-Wide Financial Statements
      Statement of Net Assets ……………………………………………………………………….………………                                    16
      Statement of Activities ……………………………………………………………...…………………………                                  17
   Fund Financial Statements
      Governmental Fund Financial Statements
          Governmental Funds Balance Sheet ……………………………………………………………..………                             18
          Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
              Net Assets……………………………………..……………………………………...……….………                                    20
          Statement of Revenues, Expenditures, and Changes in
              Fund Balances- Governmental Funds………………………………………………………………                             21
          Reconciliation of the Statement of Revenues, Expenditures, and Changes
              in Fund Balances of Governmental Funds to the Statement of Activities.………..…………..…    23
          Statement of Revenues, Expenditures, and Changes in Fund Balance-
              Budget (Non-GAAP Budgetary Basis) and Actual- General Fund…………….…………………               24
          Statement of Revenues, Expenditures, and Changes in Fund Balance-
              Budget (Non-GAAP Budgetary Basis) and Actual- Lee County Library …………………...…          25
          Statement of Revenues, Expenditures, and Changes in Fund Balance-
              Budget (Non-GAAP Budgetary Basis) and Actual- MSTU ……………………….………………                   26
          Statement of Revenues, Expenditures, and Changes in Fund Balance-
              Budget (Non-GAAP Budgetary Basis) and Actual- Tourist Development Trust Fund ………      27
      Proprietary Fund Financial Statements
          Statement of Net Assets ………………………………………………………………...….……………                                28
          Statement of Revenues, Expenses, and Changes in Fund Net Assets …….……………………...…           30
          Statement of Cash Flows ………………………………………………….………………………………                                  32
      Fiduciary Fund Statements
          Statement of Fiduciary Net Assets ……………………………………….……………..………………                           34
          Statement of Changes in Plan Net Assets ……………………………………….……………..………                        35
Notes to the Financial Statements ………………………………………………………….………………                                     38




                                                iii
                                        Lee County, Florida
                 COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                       September 30, 2009
                                     TABLE OF CONTENTS




                                                                                           PAGE
Required Supplementary Information
   Schedule of Funding Progress (unaudited) ……………………………………………………………..………                    81


                          Supplemental Financial Information
General Fund Combining Schedules
   Balance Sheet …………………………………………...………………………..…………………………………                                86
   Schedule of Revenues, Expenditures, and Changes in Fund Balances …………………….…………………        88
   Schedule of Revenues, Expenditures, and Changes in Fund Balances-
       Budget (Non-GAAP Budgetary Basis) and Actual……….……………………………….…………………                 90
Major Governmental Fund Schedule
   Schedule of Revenues, Expenditures, and Changes in Fund Balance-
      Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation
          to GAAP- Capital Improvement ………………………………..………………………………………                        94
Non-Major Governmental Funds Combining Statements
   Non-Major Governmental Fund Descriptions ……………………………………………...……………………                    96
   Balance Sheet …………………………………………………………….…………………………………………                                   99
   Statement of Revenues, Expenditures, and Changes in Fund Balances ……………...………………………     108
   Schedule of Revenues, Expenditures, and Changes in Fund Balances-
       Budget (Non-GAAP Budgetary Basis) and Actual- Special Revenue Funds ……………………………     118
   Schedule of Revenues, Expenditures, and Changes in Fund Balances-
       Budget (Non-GAAP Budgetary Basis) and Actual- Debt Service Funds ……………………………..…     125
   Schedule of Revenues, Expenditures, and Changes in Fund Balances-
       Budget (Non-GAAP Budgetary Basis) and Actual- Capital Project Funds ………………………………    129
Enterprise Funds Combining Schedule
   Enterprise Fund Descriptions …………………...……………………………………………………………….… 134
   Schedule of Revenues, Expenses, and Changes in Net Assets-
       Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP……………………… 135
Internal Service Funds Combining Statements
   Internal Service Fund Descriptions …………………………………………………………………….…………                      138
   Statement of Net Assets …………………………………………………………………...………………………                           139
   Statement of Revenues, Expenses, and Changes in Fund Net Assets …………….………..…………………      140
   Statement of Cash Flows ……………………………………………………….………………………..…………                           141
   Schedule of Revenues, Expenses, and Changes in Net Assets-
       Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP………………………   143
Fiduciary Funds Combining Statement
   Fiduciary Fund Descriptions …………………………………………………………………...…………………                         148
   Statement of Net Assets………………………..……………………………………………………………………                            149
   Statement of Changes in Assets and Liabilities- Agency Funds………………………………………………          152



                                                  iv
                                         Lee County, Florida
                COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                        September 30, 2009
                                   TABLE OF CONTENTS


                                      Statistical Section
                                             (unaudited)
                                                                                                    PAGE

Descriptions ……………………………………………………………………………………………...…                                                156
 Schedule 1- Net Assets………………..……………………………………………………………………………                                        157
 Schedule 2- Changes in Net Assets…………………………………………………………………………………                                   158
 Schedule 3- Fund Balances of Governmental Funds……………………………………………………………                             160
 Schedule 4- Changes in Fund Balances of Governmental Funds………………………………………………                       161
 Schedule 5- Assessed Value and Estimated Actual Value of Taxable Property………………………………              162
 Schedule 6- Property Tax Rates- Direct and Overlapping Governments………………………………………                  163
 Schedule 7- Principal Property Taxpayers…………………………………………………………………………                               164
 Schedule 8- Property Tax Levies and Collections…………………………………………………………………                           165
 Schedule 9- Ratio of Outstanding Debt by Type…………………………………………………………………                             166
 Schedule 10- Pledged Revenue Bond Coverage…………………………………………………………………                                167
 Schedule 11- Demographic and Economic Statistics……………………………………………………………                            169
 Schedule 12- Principal Employers…………………………………………………………………………………                                    170
 Schedule 13- Government Employees by Function/Program…………………………………………………                           171
 Schedule 14- Operating Indicators by Function/Program………………………………………………………                         172
 Schedule 15- Capital Asset Statistics by Function………………………………………………………………                          173


                              Other Supplemental Schedules
                                             (unaudited)
 Tourist Development Tax Refunding Revenue Bonds, Series 2004 - Historical Tourist Develop-
     ment Tax Revenues and Gross Revenues and Debt Service Coverage ……………………………………                  176
 Capital Revenue Bonds- Pledged Revenues and Debt Service Coverage………………………………………                   177
 Local Option Gas Tax Refunding Revenue Bonds, Series 1997- Actual Revenues and
     Coverage of Maximum Annual Debt Service Requirements and Number of Gallons…………………              178
 Five Cent Local Option Gas Tax Refunding Revenue Bonds, Series 2004- Gas Tax Revenues and
     Number of Taxable Gallons Sold, Debt Service Coverage, and Allocation of Gas Tax Revenues………   178
 Monthly Water Rates ………………………………………………………………..………………………………                                         179
 Water Restriction Surcharge Adjustment ……………………………………………...…………………………                              179
 Monthly Wastewater Rates ……………………………………………………………...…………………………                                      180
 Water and Wastewater- Connection Fees ……………………………………………...…………………………                               180
 Water Meter Installation and Service Connection Fees…………………………………………………………                         180
 Water and Wastewater- Historical Revenues, Expenses and Debt Service Coverage …………………...…          181
 Water and Wastewater- Customer Statistics………………………………………………………………………                               182
 Water and Wastewater- County System Top Ten Retail Utility Customers…………………………………                  183
 Historic Tipping Fees for Solid Waste System……………………………………………………….……………                            184
 Solid Waste- Historic Revenue and Operating Expenses …………………………………………..……………                       184
 Historic Number of Tons of Solid Waste Delivered to the System……………………………………………                    185




                                                v
                                       Lee County, Florida
               COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                       September 30, 2009
                                  TABLE OF CONTENTS


                    Other Supplemental Schedules (continued)
                                            (unaudited)
                                                                                                   PAGE

Solid Waste Historical Revenues and Expenses…………………………………………………………………                              186
Solid Waste Notes to Historical Revenues and Expenses for Fiscal Year 2009………………………………             187
Transportation Facilities Toll Rates ………………………………………………………………..………………                              191
Transportation Facilities Traffic, Revenues and Expenses by Bridge …………………………………………                194
Transportation Facilities- Revenues, Operating Expenses, and Debt Service Coverage ……………………        195
Port Authority- Airlines Serving the Airport……………………………………………………………………                             196
Port Authority- Airport Enplanements October 2008 - September 2009………………………………………                  197
Port Authority- Historical Enplanements by Carrier Type………………………………………………………                       197
Port Authority- Historical Landed Weight by Airline……………………………………………………………                         198
Port Authority- Historical Enplanements by Airline……………………………………………………………                          198
Port Authority- Primary Domestic Origin & Destination Passenger Markets…………………………………               199
Port Authority- Historical Aircraft Operations……………………………………………………………………                           200
Port Authority- Historical Statement of Net Revenues…………………………………………………………                         201
Port Authority- Passenger Facility Charge Revenue Report, and Estimated Debt Service Coverage………   202




                                                    vi
Introductory
   Section




     vii
     vii
This page is intentionally blank.




                     viii
March 1, 2010


To the Citizens of Lee County:


W     e are pleased to present to you the accompanying Comprehensive Annual Financial Report of Lee
      County (the County) for the fiscal year ended September 30, 2009. State law requires that a
complete set of financial statements, presented in conformance with generally accepted accounting
principles (GAAP), audited by licensed independent certified public accountants be released to the public
within one year of the fiscal year end. This report is being issued in fulfillment of these statutory
requirements.

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 Circuit Court as Chief Financial Officer of
the County. 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 the results of operations of the County, and
that all disclosures necessary to enable the reader to obtain a comprehensive understanding of the
County's financial activity have been included.

Internal Controls

T   he County has established a comprehensive internal control framework that is designed to provide
    reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized
use or disposition, and ensure that the financial records for preparing financial statements and
maintaining accountability for assets are reliable. The concept of reasonable assurance recognizes that the
cost of control should not exceed the benefits likely to be derived and that the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluations occur within
the above framework. We believe that the County's internal controls adequately safeguard assets and
provide reasonable assurance of properly recorded financial transactions.



Independent Audit

I n compliance with the laws of the State of Florida the County’s financial statements have been audited
  by KPMG LLP, a firm of licensed independent certified public accountants. The audit was performed
to provide reasonable assurance that the financial statements for the fiscal year ended September 30, 2009,
are free of material misstatement. The 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
rendering an unqualified opinion that the County’s financial statements for the fiscal year ended
September 30, 2009, are fairly presented in conformity with GAAP. The Independent Auditors’ Report is
presented in the Financial Section of this report. Immediately following the Independent Auditors’
Report is the Management’s Discussion & Analysis (pages 4-14) and should be read in conjunction with
this transmittal letter.




                                                      ix
County Structure and Services

L    ee County was founded in 1887 and named in honor of General Robert E. Lee. The County is located
     on the Gulf of Mexico in the southwestern portion of Florida and encompasses approximately 811
square miles, including several small islands in the Gulf of Mexico. Three incorporated municipalities are
                  located on the mainland: Fort Myers (one of two county seats), Bonita Springs, and
                  Cape Coral (second county seat). The Town of Fort Myers Beach is located on Estero
                  Island and the City of Sanibel is situated on Sanibel Island. The unincorporated
                  communities include Lehigh Acres, Estero, North Fort Myers, Tice, Alva, Matlacha,
                  Bokeelia, St. James City, and Captiva Island. Lee County’s climate can be classified as
subtropical with temperatures averaging from 66 degrees (F) in winter to 83 degrees (F) in summer.

Lee County experienced significant growth between 1999 and 2009 increasing its population by
approximately 44 percent to 615,124. Lee County continues to grow and the projected population for 2010
is 622,900. With 23 percent of its residents age 65 and older, the County is well known as a retirement
destination and therefore growth is projected to continue through the next decade, although at a slower
rate than originally anticipated.

County Services and Reporting Entity

T    he County provides its citizens with a wide range of services that include law
     enforcement, human and community assistance-related services, civil and
criminal justice system services, road and bridge maintenance, park operation, library
services, economic and physical environment, as well as other general and
administrative support services. In addition, airport facilities, transit system, water
and wastewater system, toll bridge facilities, and a waste-to-energy facility are provided under an
enterprise concept with user charges set by the Board of County Commissioners.

The Board of County Commissioners (the Board) is the legislative body for the County, having the
                responsibility of budgeting and providing all the funding used by the various County
                departments and the separate Constitutional Officers, with the exception of fees collected
                by the Clerk of Circuit Court, Property Appraiser, and Tax Collector. Under the
                direction of the Clerk of Circuit Court, the Finance & Records Department maintains the
                accounting system for the Board’s operations. The other Constitutional Officers maintain
their own accounting systems. For purposes of this report the operations of the County as a whole,
including all Constitutional Officers, have been presented.

In addition to the divisions of the Board and the Constitutional Officers, the Lee County Port Authority, a
blended component unit, is included in the Comprehensive Annual Financial Report.



Budgetary Controls

T    he adopted budget is controlled in accordance with Chapter 129, Florida Statutes, and a formal
     budget policy which is incorporated into the County’s Administrative Code. The Director of Budget
Services, on behalf of the County Manager, is responsible for the preparation of the Board’s budget. The
legally adopted total appropriation for a fund may only be changed by resolution of the Board. Full
authority to transfer budgetary amounts other than these instances is delegated to the County Manager
or the Director of Budget Services. When the Board adopts the program budget it is integrated into the
reporting system for management reporting purposes. Budget-to-actual comparisons are provided in the
report for each fund for which an appropriated annual budget has been adopted. Original and final




                                                         x
budgets for major governmental funds are also provided. The Constitutional Officers’ budgets control is
retained at the fund level; the budgets of the Property Appraiser and Tax Collector are approved by the
Florida Department of Revenue and those of the Clerk of the Circuit Court (excluding fees and court-
related budgets), Sheriff, and Supervisor of Elections are approved by the Board. Until June 30, 2009 the
court-related portion of the Clerk of Circuit Court’s budget was approved by the State’s Clerks of Court
Operations Corporation. Effective July 1, 2009 the court-related portion of the Clerk of Circuit Court’s
budget is determined by the State of Florida’s legislature in the General Appropriations Act and
distributed to the Clerk via an appropriation from the State.

Financial Condition of the County
Local Economy


L     ee County has long been a popular vacation and retirement spot with 50 miles of
      sandy beaches and 97 local, state, and national parks. Lee County contains more
than 90 golf courses and ranks fifth in the nation for hole-per-person ratio. Lee County
is also home to the Boston Red Sox and Minnesota Twins spring training. Although Lee
County experiences year-round tourism, the number of tourists increase in winter as does the retiree
population.

                The downturn in the Southwest Florida’s tourism industry continued this year as was
                evidenced by the decrease in passenger traffic at Southwest Florida International Airport
                (SWFIA), which reflected a 3.1 percent decrease from the previous year fiscal year.
                However, Southwest Florida International Airport has served more than five million
                passengers each year since 2000 and continues to rank among the 50 busiest airports in
                the nation, according to the U.S. Department of Transportation.

Employment

Lee County has seen tremendous growth in the past. According to the United States Department of
Labor, Bureau of Labor Statistics, the labor force has increased 31 percent from 2000 to 2009, and 77
percent from 1990 to 2009. The labor force in 2007, 2008, and 2009 was 286,832, 283,354, and 272,462,
respectively.

Employment in the County in 2009 is estimated at 225,551 and is predicted to increase by 19.1 percent to
268,728 by 2017.

Lee County experienced a housing boom in recent years that is now contracting and consequently the
County is experiencing its related effects. As unemployment rose throughout the nation during this past
fiscal year, it also rose in the County as services supported by the construction industry continued to
contract. The unemployment rate in September 2009 for the County was 13.9 percent compared to 11.1
percent for Florida, and 9.8 percent nationally.

According to the Florida Agency for Workforce Innovation, Labor Market Statistics, in 2008 the non-
agricultural employment was comprised of 21.1 percent in Trade, Transportation and Utilities, 16.8
percent in Government, 13.8 percent in Leisure and Hospitality, 12.0 percent in Professional and Business
Services, 11.6 percent in Natural Resources, Mining and Construction, 10.0 percent in Education and
Health Services, and 14.7 percent in all other.




                                                    xi
Economic Conditions

The mainstay of the County’s economy is tourism and retirement, and their associated
services, such as health, trade, and other service-orientated industries. The County also has
real estate development, agribusiness, high-tech manufacturing, corporate and regional
headquarters, warehousing and distribution, and financial service industries.

Foreclosures in the County decreased slightly this fiscal year to 23,207, which is a 13.6 percent decrease
from prior year. Due to the high foreclosure rate over the past few years, home values continued to
decline. According to the Florida Realtors and the University of Florida Bergstrom Center for Real Estate
Studies, the median sales price for the Fort Myers-Cape Coral metropolitan area during the third quarter
in 2009 decreased to $89,300, as compared to $147,800 for the same period in the previous year. However,
with declining home values the County saw an increase in home sales this fiscal year as compared to last
year, some of which are attributed to foreclosed and short-sale homes. For the third quarter in 2009
single-family, existing homes sales increased 88 percent as compared to the same period in the previous
year.



Current and Long-Term Capital Initiatives

T   he County’s Capital Improvement Program (CIP) consists of capital projects which reflect the
    County’s infrastructure needs over a five-year time frame and include assets with long-term value
such as buildings, roads, bridges, and parks.

Significant capital projects and other initiatives completed in fiscal year 2009 include:

        Expansion of the Justice Center which includes construction of a 165,000 square foot ten-story
        tower consisting of a shipping and receiving area, a cafeteria, a parking garage for the judges, as
        well as the purchase and renovations to the Justice Center Annex for an approximate cost of $126
        million.
        Expansion of Estero Parkway Extension of a four-lane arterial across I-75 Three Oaks Parkway to
        Ben Hill Griffin Parkway for an approximate cost of $40 million.
        Three Oaks Parkway widening to four lanes from Corkscrew Road to Alico Road for an
        approximate cost of $31 million. In addition, relocation of sewer lines for this project for an
        approximate cost of $7 million.
        Expansion of the Three Oaks Wastewater Treatment Plant and construction of Deep Injection
        Well for an approximate cost of $27 million.
        Expansion of the Pinewood Water Treatment Plant and construction of Deep Injection Well for an
        approximate cost of $23.5 million.
        Expansion of Lee/Hendry Landfill including ash monofill disposal cell, Class III disposal cell,
        and leachate holding ponds for an approximate cost of $18 million.
        Expansion of the Corkscrew Water Treatment Plant and Alico Road well fields for an
        approximate cost of $16.3 million.
        Construction of the Pine Ridge Government Complex which will consist of two large buildings
        for the Lee County Tax Collector, Sheriff, Emergency Medical Services (EMS),                  and
        Iona/McGregor Fire District for an approximate cost of $12 million.
        Construction of Plantation Road from Colonial Boulevard to Idlewild Street for an approximate
        cost of $7.3 million.
        Construction of a 15,000 square foot EMS Helicopter Hanger and supporting facilities at Page
        Field General Aviation Airport for an approximate cost of $4 million.




                                                          xii
        North Fort Myers Surface Water Restoration/Gator Slough Project for an approximate cost of
        $3.9 million, which includes the property acquisition, utility relocation, weir construction, and
        flow way restoration in the Powell Creek, Gator Slough and Prairie Pines project areas.
        Blind Pass Ecozone Restoration Project for an approximate cost of $3 million. Maintenance
        dredging was implemented to open the flushing system through Blind Pass and the sand
        removed from the channel was placed along the Sanibel beach shoreline.
        Construction of triple left hand turns at Del Prado and Cape Coral Parkway and median
        improvements along Del Prado Parkway for an approximate cost of $1 million.

Projects currently in progress include the following:

        Construction of a new baseball stadium and practice fields for the Red Sox for a projected cost of
        $75 million.
        Expansion of Gateway Wastewater Treatment Plant for a projected cost of $34 million.
        Widening of Summerlin Road from Boy Scout Road to Cypress Lake Drive including an overpass
        at College Parkway for a projected cost of $33 million.
        Widening of Colonial Boulevard from Six Mile Cypress/Ben C. Pratt Parkway to State Road 82
        for a projected cost of $31 million.
        Widening of Gladiolus Drive from Winkler Road to Pine Ridge Road including widening of Bass
        Road and A&W Bulb Road for a projected cost of $24 million.
        Construction of a multi-level parking garage as part of the expansion of the Justice Center for a
        projected cost of $17 million.
        Construction of Northwest Regional Library, a 41,000 square foot regional library located
        between Mariner High School and Mariner Middle School for a projected cost of $15 million.
        Expansion of the recycling facility including converting to a single-stream process for a projected
        cost of $9 million.
        Expansion of the Corkscrew Water Treatment Plant and well fields for a projected cost of $7.8
        million.
        Improvements to the Olga Water Treatment Plant and Reservoirs for a projected cost of $6.8
        million.
        Construction of a composting facility at the Lee/Hendry Landfill for a projected cost of $4
        million.
        Relocation of Gladiolus Water and Sewer main lines between Pine Ridge Road and Winkler Road
        for a projected cost of $3.5 million.
        Construction of a Contact Time water storage tank at the Corkscrew Water Treatment Plant for a
        projected cost of $2.9 million.
        Installation of replacement force main lines in the East Lee County area for a projected cost of
        $2.8 million.



Cash Management and Investments

C    ash that was temporarily idle during the year was invested. Cash in a depository
     account is either invested in overnight repurchase agreements, one-day discount
notes, or transferred to qualified money market funds. The County also had funds
invested in the State Board of Administration’s (SBA) Local Government Surplus Funds
Investment Pool Trust Fund (please refer to the Cash and Investment footnote). The
Board’s repurchase agreements (repos) require the investments to be collateralized at 101 percent for
Treasuries or 102 percent for Agencies. The risk of loss is considered minimal to the County due to the
short-term nature of these investments.




                                                        xiii
Investments during the year were:

        Repurchase agreements with primary United States broker/dealer firms, reporting daily to the
        New York Federal Reserve Bank. All term repurchase agreements (except those held by the
        County’s trustees) are collateralized by 101 to 105 percent with the collateral held in the County’s
        name by a third-party safekeeping agent. The collateral is valued weekly and interest earned
        ranged from 0.02 percent to 1.20 percent.

        Treasury bills and notes, government agencies and instrumentalities, and money market mutual
        funds whose investments consist primarily of municipals and U.S. government obligations. At
        fiscal year-end the maturities of the investments ranged from eight days to twenty-three months
        and interest earned ranged from 0.00 percent to 3.71 percent.

        The Florida State Board of Administration operates an investment pool for local governments,
        which was split into two funds: Fund A, which paid interest, and Fund B, which does not pay
        interest but allowed periodic transfers to Fund A as the underlying investments matured. The
        average yield for the pool for the fiscal year was 0.89 percent.



Risk Management

T    he Board maintains a property and casualty self-insurance program that is County-wide except for
     the Lee County Sheriff’s Office and the Port Authority. The concept of the self-insurance program is
to allow the County to absorb covered losses up to a specified annual amount. Excess and other specific
coverages are purchased from third-party carriers.

Additionally, the County maintains a self-insurance program to administer insurance activities relating to
County-wide employee group health and dental programs, excluding the Lee County Sheriff’s Office,
general liability, and worker’s compensation. The Board absorbs losses related to these programs up to
specific and aggregate annual loss fund limits. Excess and other specific coverages are purchased from
third-party carriers. Funding for these programs is generated by charges to the operating departments
based on management's annual estimates of claim loss funding and administration/operating costs. The
Sheriff’s Office maintains a separate self-insurance program to administer their insurance activities. The
Port Authority participates in the County’s self-insurance for group medical and dental coverage.
However the Port Authority is a member of Public Risk Management of Florida (PRM) which administers
insurance relating to general liability, and worker’s compensation.



Awards and Acknowledgments
Awards


T   he Government Finance Officers Association of the United States and Canada (GFOA) awarded a
    Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive
Annual Financial Report for the fiscal year ended September 30, 2008. This was the twenty-fourth
consecutive year that the County has received this prestigious award. To be awarded a Certificate of
Achievement, the County had to publish an easily readable and efficiently organized Comprehensive
Annual Financial Report which satisfied 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 continues to meet the Certificate of Achievement




                                                         xiv
xv
                                           Lee County Government
                                                   as of September 30, 2009


                                                       Voters of Lee County,
                                                              Florida



                          Kenneth M.         Board of County                                                     Sharon L.
      Charlie Green,
                         Wilkinson, CFA,     Commissioners/            Catherine Curtis,    Mike Scott,          Harrington,
      Clerk of Circuit
                             Property             Port                  Tax Collector         Sheriff           Supervisor of
          Court
                            Appraiser        Commissioners                                                        Elections


                                                                                             Corrections
                            Budgeting/                                    Assistant Tax
           Courts                                                                             Bureau –          Election Support
                            Personnel      See below                        Collector
                                                                                            Downtown Site



        Finance and                                                                           Corrections           Voter
                           Chief Deputy                                 Customer Service
          Records                                                                          Bureau- Ortiz Site     Registration




xvi
                                                                                               Special
          Human             IT & Data                                       Human
                                                                                              Operations          Operations
         Resources           Services                                      Resources
                                                                                               Bureau


                                                                                               Civilian
        Internal Audit       Tax Roll                                      Accounting         Operations           Fiscal/HR
                                                                                               Bureau


        Technology                                                        Management            Criminal
                                                                                                                   Absentee
         Services          Assessment                                     Information        Investigations
                                                                                                                   Balloting
        Department                                                          Systems             Bureau



                                                                           Customer
                                                                                             Patrol Bureau      Public Relations
                                                                            Support



                                                                                            Legal Services
                                                                                               Bureau
                                                        Board of County Commissioners/Port Commissioners
           Commissioner, District 1     Commissioner, District 2     Commissioner, District 3     Commissioner, District 4              Commissioner, District 5
             Robert P. Janes               Brian Bigelow                  Ray Judah                  Tammara Hall                         Frank Mann




                                                                                                           Port Authority Special
                              Hearing
                                                        County Attorney          County Manager                Management
                             Examiner
                                                                                                                Committee




         Assistant                         Assistant              Visitor and
                                                                                Deputy County      Economic            Public Works           Human
          County       Smart Growth         County                Convention
                                                                                  Manager         Development            Director             Services
         Manager                           Manager                 Bureau



         Budget                           IT Contract                               Transit                           Transportation
         Services                          Manager                                (LeeTran)                            Department

                                                                                                                                                         Port Authority
                                                                                                                                                          Executive




xvii
        Community                           Equal                                  Animal                              Construction &
       Development                        Opportunity                             Services                                                                 Director
                                                                                                                          Design
       Department                           Office                                Division                              Department


       County Lands                        Library                                Veterans                                Utilities                      Administration
         Division                          Division                             Service Office                            Division


                                            Public
       Public Safety                                                               Fleet                                Solid Waste                         Aviation
                                          Resources
         Division                                                               Management                               Division
                                           Division


        Parks and                                                                                                        Natural                         Development
                                          Purchasing                               Sports
       Recreation                                                                                                       Resources
                                           Division                               Authority
       Department                                                                                                        Division



                                           Human                                                                         Contracts                           Legal
                                          Resources                                                                       Office



                                                                                                                        Facilities
                                                                                                                       Management
xviii
Financial
 Section




    1
    1
                                KPMG LLP
                                Suite 1700
                                100 North Tampa Street
                                Tampa, FL 33602




                                           Independent Auditor’s Report


The Board of County Commissioner
Lee County, Florida:

We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of Lee County, Florida (the
County), as of and for the year ended September 30, 2009, which collectively comprise the County’s basic
financial statements as listed in the table of contents. These financial statements are the responsibility of
the County’s management. Our responsibility is to express opinions on these financial statements based on
our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the County’s internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes 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, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of Lee County, Florida, as of September 30, 2009, and the
respective changes in financial position, and where applicable, cash flows thereof and the respective
budgetary comparison for the general fund, Lee County library, MSTU, and tourist development trust
funds for the year then ended in conformity with U.S. generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated March 1, 2010
on our consideration of the County's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.

The management’s discussion and analysis on pages 4 through 14 and the schedule of funding progress on
page 81 are not a required part of the basic financial statements but are supplementary information required
by U.S. generally accepted accounting principles. We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and presentation



                               KPMG LLP, a U.S. limited liability partnership, is the U.S.
                               member firm of KPMG International, a Swiss cooperative.



                                                                          2
of the required supplementary information. However, we did not audit the information and express no
opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County’s basic financial statements. The introductory section, supplemental financial
information, statistical section, and other supplemental schedules listed in the accompanying table of
contents, are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The supplemental information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation
to the basic financial statements taken as a whole. The introductory section, statistical section, and other
supplemental schedules have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we express no opinion on them.




March 1, 2010
Certified Public Accountants




                                                       3
                                               Lee County, Florida

                          Management’s Discussion and Analysis
                                                    (unaudited)


T   his discussion and analysis of Lee County’s (the County) financial statements is designed to introduce the
    basic financial statements and provide an analytical overview of the County’s financial activities for the
fiscal year ended September 30, 2009. The basic financial statements are comprised of the government-wide
financial statements, fund financial statements, and footnotes to the financial statements. We hope this will
assist readers in identifying significant financial issues and changes in the County’s financial position.


                                           Financial Highlights
    At the close of fiscal year 2009 the County’s assets exceeded its liabilities, resulting in total net assets of
    $3,607,885,000. Governmental and business-type assets exceeded its liabilities by $2,240,765,000 and
    $1,367,120,000, respectively.
    The County’s total net assets increased $88,500,000, or 2.5 percent, in comparison to prior year.
    The County had $724,999,000 of unrestricted net assets that can be used to meet the County’s ongoing
    operations.
    Total revenues decreased $168,338,000, or (13.5) percent, in comparison to prior year.
    Total expenses decreased $35,595,000, or (3.5) percent, in comparison to prior year.
    The County’s governmental activities reported total net assets of $2,240,765,000, which is an increase of
    $42,041,000, or 1.9 percent, in comparison to prior year. Approximately 19.7 percent of the total, or
    $440,397,000, is unrestricted, undesignated, and thus available for use at the County’s discretion.
    The County’s business-type activities reported total net assets of $1,367,120,000, which is an increase of
    $46,459,000, or 3.5 percent, in comparison to prior year. Approximately 20.8 percent of the total, or
    $284,602,000, is unrestricted, and thus available for spending at the County’s discretion.


                              Government-wide Financial Statements

T  he government-wide financial statements (statement of net assets and statement of activities found on
   pages 16-17) concentrate on the County as a whole and do not emphasize fund types but rather a
governmental or a business-type classification, which are presented in separate columns. The governmental
and business-type activities comprise the primary government. Fiduciary funds are not included in the
government-wide financial statements.

General governmental and intergovernmental revenues support the governmental activities, whereas the
business-type activities are primarily supported by user fees and charges for services. The purpose of the
government-wide financial statements is to allow the user to be able to analyze the County’s total financial
position.

The statement of activities reflects the expenses of a given function or program, which are offset by program
revenues. Program revenues are defined as charges for services, operating grants and contributions, and
capital grants and contributions directly associated with a given function. Taxes are reported under general
revenue. The County maintains an allocation program for indirect expenses and therefore reports this
allocation in a separate column on the government-wide statement of activities.

The effect of the interfund activity has been removed from the government-wide financial statements.
However, the interfund services between functions are not eliminated. The internal service activity has been
eliminated except for the outside activity on the government-wide financial statements.




                                                            4
                                              Lee County, Florida

                                     Fund Financial Statements

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

The County’s funds are presented in separate fund financial statements. These funds are presented on a
governmental fund financial statement and a proprietary fund financial statement. The County’s major funds
are presented in separate columns on the fund financial statements. The definition of a major fund is one that
meets certain criteria set-forth in Governmental Accounting Standards Board Statement Number 34, Basic
Financial Statements- and Management’s Discussion and Analysis- for State and Local Governments (GASB 34). The
funds that do not meet the criteria of a major fund are considered non-major funds and are combined into a
single column on the fund financial statements. However, a non-major fund can be designated as a major
fund if the County chooses to do so.

The County adopts an annual budget for all funds except for agency funds, Sheriff’s internal service and
special revenue funds, and the Property Appraiser’s special revenue fund. A budgetary comparison has been
presented for the General Fund, Library, MSTU, and Tourist Development Trust Fund which compares not
only actual results to budget but also the original adopted budget to final budget.


                            Governmental Fund Financial Statements

G    overnmental fund financial statements (found on pages 18-27) are prepared on the modified accrual
     basis using the current financial resources measurement focus. Under the modified accrual basis,
revenues are recognized when they become measurable and available as net current assets. Although the
activity of the internal service funds is reported with the governmental activities on the government-wide
financial statements they are not combined on the government fund financial statements.

Five of the County’s governmental funds, the General Fund, Lee County Library, Municipal Service Taxing
Unit (MSTU), Tourist Development Trust Fund, and Capital Improvement are classified as major funds. All
other governmental funds are combined into a single column on the governmental fund financial statements.
Individual fund data for the non-major funds are found in combining statements as supplemental financial
data.


                              Proprietary Fund Financial Statements

P   roprietary fund financial statements (found on pages 28-33), like government-wide financial statements,
    are prepared on the full accrual basis. Proprietary funds record both operating and non-operating
revenues and expenses. Operating revenues are those that are obtained from the operations of the proprietary
fund.

The County reports the Port Authority, Water and Wastewater, Transportation Facilities, and Solid Waste as
major funds in the proprietary fund financial statements. These enterprise funds are used to present the same
functions that are presented in the government-wide financial statements. The only non-major fund, Transit,
is reported in a separate column. The internal service funds are presented in their entirety combined in a
single column on the proprietary fund financial statements.

The internal service funds are used to account for data processing, risk management, radio communications,
telecommunications, fleet management, and health, dental, liability self-insurance, and worker’s




                                                     5
                                                      Lee County, Florida

compensation services on a cost reimbursement basis. Individual fund data is in the combining statements as
supplemental financial data.


                                      Fiduciary Fund Financial Statement

T   he fiduciary fund financial statement (found on pages 34-35) is not included in the government-wide
    financial statements because the resources of those funds are not available to support the County’s
programs. The County maintains an other postemployment benefits trust fund that is used to hold the plan’s
assets, and agency funds that are used to account for assets held by the County as an agent for individuals
and other governments.


                                     Government-Wide Financial Analysis

T   he government-wide financial statements were designed so that the user could determine if the County is
    in a better or worse financial condition from the prior year.

The following is a condensed summary of net assets for the primary government for fiscal years 2009 and
2008.

                                                   Lee County, Florida
                                                  Summary of Net Assets
                                                 September 30, 2009 and 2008
                                                (amounts expressed in thousands)
                                         Governmental                  Business-type
                                           Activities                    Activities                          Total
                                      2009            2008          2009            2008           2009                 2008
 Current and other assets            $938,172      $1,072,671     $534,823         $526,371     $1,472,995           $1,599,042
 Capital assets                     1,697,103       1,569,900     1,877,601       1,871,996      3,574,704            3,441,896
  Total assets                      2,635,275       2,642,571     2,412,424       2,398,367      5,047,699            5,040,938
 Other liabilities                   100,349         133,354         80,362            82,652      180,711              216,006
 Non-current liabilities             294,161         310,493        964,942           995,054    1,259,103            1,305,547
  Total liabilities                  394,510         443,847      1,045,304         1,077,706    1,439,814            1,521,553
 Net Assets:
 Invested in capital assets, net
  of related debt                   1,456,025       1,318,137       971,317          942,028     2,427,342            2,260,165
 Restricted                           344,343         353,317       111,201          120,464       455,544              473,781
 Unrestricted                         440,397         527,270       284,602          258,169       724,999              785,439
  Total net assets                 $2,240,765      $2,198,724    $1,367,120        $1,320,661   $3,607,885           $3,519,385

Invested in capital assets, net of related debt is the largest portion of the net assets. This represents capital
assets (land, buildings, improvements, equipment, furniture, vehicles and rolling stock, and infrastructure),
net of accumulated depreciation, and the outstanding related debt (less unspent proceeds) used to acquire the
assets. The invested in capital assets, net of related debt balance of $2,427,342,000 (67.3 percent of total net
assets) increased $167,177,000, or 7.4 percent, in comparison to prior year.

The restricted net asset balance of $455,544,000 (12.6 percent of total net assets), decreased $18,237,000, or (3.8)
percent, in comparison to prior year. This balance represents assets that are subject to external restrictions
imposed by creditors, through bond covenants, by grantors, or by law, on how they are used.




                                                                   6
                                                      Lee County, Florida

The unrestricted net asset balance of $724,999,000 (20.1 percent of total net assets), decreased $60,440,000 or
(7.7) percent, in comparison to prior year. This balance represents assets that are available for spending at the
County’s discretion.

The following schedule compares the revenues, expenses, and changes in net assets for the primary
government for the current and previous fiscal years:

                                                      Lee County, Florida
                               Summary of Revenues, Expenses, and Changes in Net Assets
                                       For the Years Ended September 30, 2009 and 2008
                                                (amounts expressed in thousands)
                                                   Governmental                     Business-type
                                                      Activities                       Activities                           Total
                                               2009                 2008        2009                 2008        2009                 2008
 Revenues:
 Program revenues:
  Charges for services                        $121,787             $128,131    $310,058             $317,065    $431,845             $445,196
  Operating grants and contributions            35,215               31,593        5,749               7,347      40,964               38,940
  Capital grants and contributions              10,342               12,711      46,122               70,330      56,464               83,041
 General revenues:
  Taxes                                        460,133              526,015        3,110               4,257     463,243              530,272
  Impact fees                                    7,003               14,769                                         7,003              14,769
  Grants and contributions not
   restricted to specific programs              44,666               59,471                                       44,666               59,471
  Other                                         30,405               61,547        4,783              14,475      35,188               76,022
 Total revenues                                709,551              834,237     369,822              413,474    1,079,373            1,247,711
 Expenses:
 Program activities:
  General government                           221,292              249,443                                      221,292              249,443
  Public safety                                234,004              241,773                                      234,004              241,773
  Physical environment                          15,869               14,202                                       15,869               14,202
  Transportation                                64,026               55,302                                       64,026               55,302
  Economic environment                          24,886               25,523                                       24,886               25,523
  Human services                                24,891               24,612                                       24,891               24,612
  Culture and recreation                        64,625               68,789                                       64,625               68,789
  Interest on long-term debt                    12,144               13,007                                       12,144               13,007
  Indirect expenses                             (3,807)             (3,692)        3,807               3,692            -                    -
 Business-type activities:
  Airport                                                                       103,029              108,038     103,029              108,038
  Water and wastewater                                                           95,782               95,271      95,782               95,271
  Transit                                                                        22,769               24,340      22,769               24,340
  Transportation Facilities                                                      28,022               30,738      28,022               30,738
  Solid Waste                                                                    79,534               75,430      79,534               75,430
  Total expenses                               657,930              688,959     332,943              337,509     990,873             1,026,468
 Total change in net assets
  before transfers                              51,621              145,278      36,879               75,965      88,500              221,243
 Transfers                                      (9,580)             (8,197)        9,580               8,197            -                    -
 Increase in net assets                          42,041          137,081          46,459           84,162          88,500              221,243
 Net assets October 1                         2,198,724        2,061,643       1,320,661        1,236,499       3,519,385            3,298,142
 Net assets September 30                     $2,240,765       $2,198,724      $1,367,120       $1,320,661      $3,607,885           $3,519,385




                                                                     7
                                                                            Lee County, Florida


Total revenues decreased $168,338,000, or (13.5) percent, in comparison to prior year. Total expenses
decreased $35,595,000, or (3.5) percent, in comparison to prior year.


                                                                Governmental Activities

T  he governmental activities increased or (decreased) the County’s total assets, total liabilities, and total net
   assets by ($7,296,000), ($49,337,000), and $42,041,000, respectively. The increase in total net assets resulting
from governmental activities is 47.5 percent of the total increase in total net assets. The increase in the
governmental activities’ invested in capital assets net of related debt is $137,888,000, or 10.5 percent, in
comparison to prior year.

The following is a chart of revenues by source for governmental activities by percent of total revenues for
fiscal year 2009.


                                                           Revenues by Source- Governmental Activities

                                                                                                        Charges for Services
                                                       Grants & Contributions                                  17%
                                                          Not Restricted                                            Operating Grants and
                                                                6%                  Other                              Contributions
                                                                                     4%                                     5%
                                                           Impact Fees
                                                               1%                                                     Capital Grants and
                                                                                                                        Contributions
                                                                                                                              1%




                                                                            Taxes
                                                                             66%



Total revenues for governmental activities decreased $124,686,000 or (14.9) percent, in comparison to prior
year.

The following is a chart of revenues by source for governmental activities for fiscal years 2009 and 2008.


                                                                                                                                                   FY09
                                              Revenues by Source- Governmental Activities
                                                                                                                                                   FY08
                                    600,000
           Amounts (in thousands)




                                    500,000

                                    400,000

                                    300,000

                                    200,000

                                    100,000

                                         0
                                              Charges for Operating       Capital               Taxes      Impact Fees Unrestricted        Other
                                               Services   Grants and Grants and                                          Grants &
                                                         Contributions Contributions                                   Contributions




                                                                                            8
                                                                             Lee County, Florida

The main components of the change in total revenues for governmental activities were as follows:

        Charges for services decreased $6,344,000, or (5.0) percent, in comparison to prior year. The main
        reason for the decrease is a direct result of a state senate bill that changed Section 28.37(2), Florida
        Statutes, so that effective July 1, 2009 all court-related fees collected by the Clerk of Courts became
        state revenues and are now accounted for in a liability account “Due to the State” for the last quarter
        in the fiscal year. Another component is due to the continued downturn in recording documents
        which consequently lowered the $2.00 technology fee collections, recording fees, doc stamp
        commissions, and intangible tax.
        Capital grants and contributions decreased $2,369,000, or (18.6) percent, in comparison to prior year,
        primarily due to the reduction of developer contributed assets.
        Taxes decreased $65,882,000, or (12.5) percent, in comparison to prior year, due to a reduction in the
        millage rate assessed by the Board of County Commissioners and the decrease in property values.
        Impact fees decreased $7,766,000, or (52.6) percent, in comparison to prior year, due to a decrease in
        construction and the number of building permits issued in the current fiscal year.
        Unrestricted grants and contributions decreased $14,805,000, or (24.9) percent, in comparison to prior
        year. The main components of this decrease are the reduction of the ½ Cent Sales Tax by $4,377,000,
        and a decrease in the State Revenue Sharing distribution of $1,336,000.
        Other governmental revenues decreased $31,142,000, or (50.6) percent, in comparison to prior year,
        primarily due to lower investment earnings.

Total expenses for governmental activities decreased $31,029,000, or (4.5) percent, in comparison to prior
year.

The following is a chart of expenses by program for governmental activities for fiscal years 2009 and 2008.
                                                                                                                                                     FY09
                                                         Expenses by Program- Governmental Activities                                                FY08
                                       300,000
              Amounts (in thousands)




                                       250,000

                                       200,000

                                       150,000

                                       100,000

                                        50,000

                                            0
                                                  General Public Safety Physical Transportation Economic      Human      Culture & Interest on L/T
                                                 Government            Environment             Environment   Services   Recreation       Debt




The main components of the change in total expenses for governmental activities were as follows:

        General government expenses reported in governmental activities decreased $28,151,000, or (11.3)
        percent, in comparison to prior year. The major component of the decrease is due to the completion
        of the Justice Center construction project. Expenses charged to the project in the current year were
        $26,184,000 less than the prior year.
        Public safety expenses decreased $7,769,000, or (3.2) percent, in comparison to prior year due to lower
        bad debt expense, reduced staffing, and lower costs for the Sheriff for overtime, drugs, fuel, and
        fewer equipment purchases.
        Transportation expenses increased $8,724,000, or 15.8 percent, in comparison to prior year due to
        increased spending on road projects such as the widening of Gladiolus Drive, expansion of Estero
        Parkway Extension, widening of Summerlin Road, and the Daniels Dual Left Lanes Project.




                                                                                        9
                                                                                                  Lee County, Florida

        Culture and recreation expenses decreased $4,164,000 or (6.1) percent, in comparison to prior year
        due to the completion of park projects such as the Six Mile Cypress Slough Interpretive Facility, San
        Carlos/Bunche Beach Preserve, Lehigh Land/Park Acquisition Project, and the winding down of
        projects such as Ten Mile Linear Regional Park, Lakes Park Master Plan, Wa-Ke Hatchee Community
        Park, and Veterans Park Master Plan Improvements.


                                                                                        Business-Type Activities

T   he business-type activities increased or (decreased) the County’s total assets, total liabilities, and total net
    assets by $14,057,000, ($32,402,000), and $46,459,000, respectively. The overall total increase in total net
assets resulting from business-type activities was 52.5 percent. The increase in the business-type activities’
invested in capital assets net of related debt is $29,289,000, or 3.1 percent, in comparison to prior year.

Total revenues reported in business-type activities decreased $43,652,000, or (10.6) percent in comparison to
prior year. There was a decrease of $24,553,000 in Water and Wastewater developer contributed assets. In
addition, collectively for the proprietary funds there was a decrease of $8,532,000 in other revenues due to a
decrease in investment earnings, and a decrease of $7,277,000 in total operating revenues due to the
downturn in the economy.

The following is a chart of revenues by source for business-type activities for fiscal years 2009 and 2008.


                                                                            Revenues by Source- Business-Type Activities                                         FY09

                                                                                                                                                                 FY08
                                                                  350,000
                                         Amounts (in thousands)




                                                                  300,000

                                                                  250,000

                                                                  200,000

                                                                  150,000

                                                                  100,000

                                                                   50,000

                                                                       0
                                                                              Charges for   Operating Grants Capital Grants            Taxes          Other
                                                                               Services     and Contributions and Contributions




The following is a chart of expenses by program for business-type activities for fiscal years 2009 and 2008.


                                                                            Expenses by Program - Business-Type Activities
                                                                                                                                                                    FY09
                                                                                                                                                                    FY08
                                             120,000
                Amounts (in thousands)




                                             100,000

                                                            80,000

                                                            60,000

                                                            40,000

                                                            20,000

                                                                   0
                                                                             Airport    Water & Wastew ater      Transit          Transportation   Solid Waste
                                                                                                                                     Facilities




                                                                                                                     10
                                                Lee County, Florida

Total business-type expenses decreased $4,566,000, or (1.4) percent, in comparison to prior year. The decrease
is due to various cost saving measures such as not filling all vacant positions, lower fuel costs, a reduction in
material costs, and a reduction in insurance premiums.


                          Financial Analysis of the Government’s Funds
Governmental Funds


G   overnmental funds are comprised of the General Fund, special revenue funds, debt service funds, and
    capital projects funds. As noted earlier governmental funds use the current financial resources
measurement focus that focuses on near-term inflows and outflows. The General Fund is the general
operating fund that is used to account for all financial resources, except those required to be accounted for in
another fund.

The following are noteworthy facts and changes from prior year for major funds.

General Fund- Total ad valorem taxes decreased $41,890,000, or (12.4) percent, due to a decrease in property
values. Franchise fees increased $135,000 or 1.4 percent.

Lee County Library- Ad valorem taxes decreased $10,915,000, or (34.5) percent, due to a decrease in property
values coupled with a twenty-five percent millage rate reduction from the prior year.

Municipal Service Taxing Unit (MSTU)- Ad valorem taxes decreased $3,721,000, or (9.6) percent, due to a
decrease in property values. Licenses and permit revenue decreased $1,054,000, or (22.1) percent, due to a
reduction in construction activity and building permits. Communication Services Tax revenue decreased
$60,000, or (0.6) percent.

Tourist Development Trust Fund- Tourist Tax revenue decreased $1,888,000, or (7.9) percent, due to a reduction
in tourists visiting the area and reduced rates on lodging.

Capital Improvement- Ad valorem taxes decreased $5,736,000, or (12.4) percent, due to a decrease in property
values.

Proprietary Funds


P   roprietary funds are comprised of enterprise funds and internal service funds. An enterprise fund is used
    to account for activities for which a fee is charged to external users for goods and services. Internal
service funds are those that provide a service, primarily within the government, and charge a recovery fee.

The following are noteworthy facts and changes from prior year for major funds.

Port Authority- User fees decreased $2,930,000, or (6.1) percent, and concession revenue decreased $1,965,000,
or (5.3) percent, due to less traffic in the terminal. Consequently airline rebates decreased $1,565,000, or (39.8)
percent, due to the new airline agreement and a drop in operating revenues. Interest revenue decreased
$2,555,000, or (75.5) percent, due to lower interest rates. Most costs decreased, however there was an increase
in employee benefits of $1,539,000, or 14.6 percent, due to the unfunded other postemployment benefits
(OPEB). Other costs decreased, such as contractual services, material and supplies which decreased
$4,077,000, or (18.0) percent, due to a decrease in airport-wide budget reductions which included a $2,200,000
reduction in fuel inventory. In addition, insurance decreased $1,501,000, or (37.5) percent, due to lower
insurance premiums.




                                                        11
                                              Lee County, Florida

Water and Wastewater- User fees decreased $3,746,000, or (4.3) percent, due to the downturn in the economy
that has adversely affected consumer’s water consumption patterns. Interest revenue decreased $2,337,000, or
(55.8) percent, due to a reduction in interest rates. Capital contributions decreased $24,553,000, or (53.4)
percent, due to a reduction of developer contributed assets. Contractual services, material and supplies
increased $2,186,000, or 12.8 percent, mostly due to expenses incurred for the Asset Management Program
and a higher volume of laboratory testing. Depreciation increased $1,945,000, or 7.0 percent. The remaining
costs increased or decreased slightly resulting in an overall increase in operating expenses of 2.5 percent.

Transportation Facilities – Toll revenue decreased $1,095,000, or (2.9) percent, due to a continued downturn in
traffic crossing the bridges. Interest revenue decreased $770,000, or (64.8) percent, due to a reduction in
interest rates. Most costs decreased with the most noteworthy change in repairs and maintenance which had
a decrease of $933,000, or (72.9) percent, due to repair and painting of steel beams of the Cape Coral Bridge in
the prior year that were not incurred in the current year.

Solid Waste – User fees and rentals and franchise fees decreased $1,503,000, or (2.2) percent, and $635,000, or
(28.6) percent, respectively due to the downturn in the economy. However, miscellaneous revenue increased
$2,385,000, or 16.5 percent, due to electric revenues from the third burner. Interest revenue decreased
$2,670,000, or (81.6) percent, due to a reduction in interest rates. Most costs either increased or decreased
slightly except contractual services, materials and supplies which increased $3,060,000, or 6.6 percent, due to
increase hauling collection costs and increased expenses related to the third burner. Also noteworthy is the
increase in depreciation of $1,022,000, or 8.8 percent.


                        General Fund Budgetary and Actual Highlights
The difference between the original adopted and final amended budget in the General Fund is $27,422,000.
The major differences include:

        $18,244,000 increase for the Neighborhood Stabilization Program grant which will extend until 2013.
        $5,000,000 increase for a grant to the City of Fort Myers to six-lane State Road 82 from Ortiz Avenue
        to Colonial Boulevard.
        $4,499,000 increase from the Capital Revenue Bonds Construction to reimburse debt service
        payments.
        The remaining amendments are a combination of increases and decreases for various reasons which
        separately are not noteworthy.

The variance between the final amended budget and actual expenditure results for the General Fund is a
favorable variance of $76,229,000. The major differences include:

        $17,084,000 of the variance is due to Human Services for the Neighborhood Stabilization Program
        grant.
        $8,002,000 of the variance is due to various projects being completed over time and not finished in the
        current year, such as landscaping projects, Admin East Renovation, Justice Center Renovations, and
        the West Coast Inland Navigational District (WCIND) grant navigation improvements.
        $4,630,000 of the variance is due to Public Safety as a result of salary, medical supplies, and fuel
        savings coupled with a reduction in the number of planned ambulance purchases.
        $4,526,000 of the variance is due to cost savings from the Sheriff’s Office.
        The remaining differences are for various reasons which separately are not noteworthy.




                                                            12
                                                    Lee County, Florida

                                                    Capital Assets

N    on-depreciable capital assets include land, construction in progress, software in progress, and artwork.
     Depreciable assets include buildings, improvements other than buildings, machinery and equipment,
software, and infrastructure.

The following is a schedule of the County’s capital assets as of September 30, 2009 and 2008:

                                                 Lee County, Florida
                                             Summary of Capital Assets
                                             September 30, 2009 and 2008
                                           (amounts expressed in thousands)

                                          Governmental                      Business-type
                                             Activities                        Activities                            Total


                                      2009                2008          2009                 2008         2009                 2008
 Artwork                                 $304               $304                                             $304                 $304
 Land                                 553,679             492,940      $232,938             $231,407      786,617              724,347
 Construction in progress             319,058             452,521       154,307              139,972      473,365              592,493
 Software in Progress                    2,916              3,050           139                 275         3,055                 3,325
 Buildings                            329,074             256,874       477,905              476,144      806,979              733,018
 Improvement other than buildings     126,416              60,982       378,185              357,031      504,601              418,013
 Machinery & equipment                214,622             218,861       351,068              331,658      565,690              550,519
 Software                              10,988              11,272         2,878                2,670       13,866               13,942
 Infrastructure                       578,068             480,286       876,255              858,826    1,454,323             1,339,112
 Total capital assets                2,135,125        1,977,090        2,473,675        2,397,983       4,608,800             4,375,073
 Accumulated depreciation            (438,022)        (407,190)        (596,074)        (525,987)      (1,034,096)            (933,177)
 Total                              $1,697,103       $1,569,900       $1,877,601       $1,871,996      $3,574,704            $3,441,896


Noteworthy capital asset purchases/completed projects that took place in fiscal year 2009 were as follows:

          Completed expansion of the Justice Center
          Completed expansion of Estero Parkway
          Completed expansion of Three Oaks Parkway
          Completed expansion of the Three Oaks Wastewater Treatment Plant and construction of a deep
          injection well
          Completed the expansion of the Pinewood Water Treatment Plant and construction of a deep
          injection well
          Completed the expansion of the Lee/Hendry Landfill
          Completed the expansion of the Corkscrew Water Treatment Plant
          Completed construction of the Pine Ridge Government Complex
          Completed construction of Plantation Road from Colonial Boulevard to Idlewild Street

Additional information on the County’s capital assets can be found in Note V on pages 54-57.




                                                                 13
                                                Lee County, Florida

                                          Debt Administration

A    t September 30, 2009, the County had $1,130,253,000 of outstanding bonded debt. The revenue bonds,
     which are each payable from a specific revenue stream, had an outstanding balance of $1,130,253,000, or
100 percent of the total bonded debt. The outstanding bond balance decreased $52,500,000, or (4.4) percent, in
comparison to prior year.

Total long-term liabilities of $1,258,736,000, which includes bonds payable (net of unamortized
discounts/premiums and gains/losses), variable debt, notes payable, self-insurance claims payable,
compensated absences, landfill closure and postclosure costs, and arbitrage payable decreased $46,811,000, or
(3.6) percent, in comparison to prior year. The following is a schedule of outstanding bonds as of September
30, 2009 and 2008.

                                             Lee County, Florida
                                       Summary of Outstanding Debt
                                          September 30, 2009 and 2008
                                        (amounts expressed in thousands)

                              Governmental               Business-type
                                Activities                 Activities                          Total


                           2009          2008          2009           2008         2009                 2008
  Revenue Bonds           $233,558      $252,598     $896,695       $930,155      $1,130,253           $1,182,753
  Total                   $233,558      $252,598     $896,695       $930,155      $1,130,253           $1,182,753

Standard and Poor’s Rating Group suggests that debt service should not exceed 10-15 percent of
appropriations. The fiscal year 2009 debt service was 6.0 percent, which is well within the suggested
guidelines.

Additional information on the County’s long-term debt can be found in note V on pages 60-72.


                         Economic Factors and Next Year’s Budget Rates
The following were factors considered when next year’s budget was prepared:

          Lee County had a higher unemployment rate compared to the state and nation. Utilizing September
          2009, as a benchmark, Lee County had a 13.9 percent unemployment rate as compared to the State
          which had an 11.1 percent unemployment rate, and the nation which had a 9.8 percent
          unemployment rate, as reported by the U.S. Bureau of Labor Statistics, and Florida Agency for
          Workforce Innovations.
          There was no salary or pay for performance increases budgeted in the fiscal year 2010 budget.
          There was a decline in the property values from fiscal year 2009 to fiscal year 2010 of 23.2 percent
          based upon values determined by the Property Appraiser.


                                         Request for information
This financial report is designed to provide the reader an overview of the County. Questions regarding any
information provided in this report should be directed to: Lee County Clerk of Courts, Finance and Records
Department, 2115 Second Street, 3rd Floor, Fort Myers, Florida, 33901, phone (239) 533-2100.




                                                          14
   Basic
 Financial
Statements




    15
    15
                                       Lee County, Florida
                                   STATEMENT OF NET ASSETS
                                     As of September 30, 2009
                                   (amounts expressed in thousands)


                                                                    Primary Government
                                                  Governmental         Business-type
                                                    Activities           Activities         Total
ASSETS
Cash and equity in pooled cash
   and investments                                      $899,914                $234,371    $1,134,285
Investments                                                                       71,992        71,992
Receivables (net)                                          14,505                 25,217        39,722
Due from other governments                                 10,469                    790        11,259
Internal balances                                           5,976                 (5,976)            0
Inventory                                                   3,373                  1,102         4,475
Prepaids                                                    2,036                  1,100         3,136
Other assets                                                1,899                  7,894         9,793
Restricted assets                                                                198,333       198,333
Capital assets:
 Non-depreciable                                          875,957                 387,384    1,263,341
 Depreciable, net                                         821,146               1,490,217    2,311,363
   Total assets                                         2,635,275               2,412,424    5,047,699

LIABILITIES
Contracts and accounts payable                             43,727                 19,747       63,474
Accrued liabilities                                        40,051                 14,408       54,459
Accrued interest payable                                    5,584                               5,584
Due to other governments                                    5,802                    663        6,465
Customer deposits                                           3,342                    920        4,262
Unearned revenues                                           1,843                  1,827        3,670
Refunds and rebates                                                                3,115        3,115
Liabilities payable from restricted assets                                        74,784       74,784
Noncurrent liabilities:
 Due within one year                                      29,389                   23,268       52,657
 Due in more than one year                               264,772                  906,572    1,171,344
   Total liabilities                                     394,510                1,045,304    1,439,814


NET ASSETS
Invested in capital assets,
 net of related debt                                    1,456,025                971,317     2,427,342
Restricted for:
 Capital projects                                        324,494                  56,336      380,830
 Debt service                                             19,849                  41,207       61,056
 Renewal and replacement                                                          13,658       13,658
Unrestricted                                             440,397                 284,602      724,999
  Total net assets                                    $2,240,765            $1,367,120      $3,607,885




The notes to the financial statements are an integral part of this statement.




                                                         16
                                                                                         Lee County, Florida
                                                                                    STATEMENT OF ACTIVITIES
                                                                                For the Year Ended September 30, 2009
                                                                                  (amounts expressed in thousands)
                                                                                                                                              Net (Expense) Revenue and
                                                                                                 Program Revenue                                Changes in Net Assets
                                                                Indirect                            Operating      Capital                      Primary Government
                                                                Expense              Charges for    Grants and    Grants and     Governmental       Business-type
     Functions/Programs                      Expenses          Allocation             Services     Contributions Contributions     Activities         Activities          Total
     Primary government:
      Governmental activities:
        General government                      $221,292             ($9,197)            $69,995         $5,326         $4,549        ($132,225)                          ($132,225)
        Public safety                            234,004               1,094              41,255          4,284            196         (189,363)                           (189,363)
        Physical environment                      15,869                 164               2,125          3,800          2,005           (8,103)                             (8,103)
        Transportation                            64,026               1,106               1,223          8,443          1,365          (54,101)                            (54,101)
        Economic environment                      24,886                 240                   3          8,909                         (16,214)                            (16,214)
        Human services                            24,891                 309               2,805          2,988            169          (19,238)                            (19,238)
        Culture and recreation                    64,625               2,477               4,381          1,465          2,058          (59,198)                            (59,198)
        Interest on long-term debt                12,144                                                                                (12,144)                            (12,144)
      Total governmental activities              661,737              (3,807)            121,787         35,215         10,342         (490,586)                0          (490,586)
      Business-type activities:
        Airport                                  103,029                 443              98,570           386          19,895                            $15,379             15,379
        Water and Wastewater                      95,782               1,624              85,707                        20,646                              8,947              8,947
        Transit                                   22,769                 481               3,340          4,621          5,277                            (10,012)           (10,012)




17
        Transportation Facilities                 28,022                 692              37,160                           304                              8,750              8,750
        Solid Waste                               79,534                 567              85,281            742                                             5,922              5,922
      Total business-type activities             329,136               3,807             310,058          5,749         46,122                0            28,986             28,986
     Total primary government                   $990,873                  $0            $431,845        $40,964        $56,464         (490,586)           28,986           (461,600)
                                          General revenues:
                                           Taxes:
                                             Property taxes                                                                             400,300             1,524            401,824
                                             Gas taxes                                                                                   17,775                               17,775
                                             Tourist taxes                                                                               21,880                               21,880
                                             Communication taxes                                                                         10,885                               10,885
                                             Franchise fees                                                                               9,293             1,586             10,879
                                           Impact fees                                                                                    7,003                                7,003
                                           Grants and contributions not restricted to specific programs                                  44,666                               44,666
                                           Investment earnings                                                                           14,813             3,919             18,732
                                           Miscellaneous                                                                                 15,592               864             16,456
                                          Transfers                                                                                      (9,580)            9,580                  -
                                          Total general revenues and transfers                                                          532,627            17,473            550,100
                                          Change in net assets                                                                           42,041            46,459             88,500
                                          Net assets - beginning                                                                      2,198,724         1,320,661          3,519,385
                                          Net assets - ending                                                                        $2,240,765        $1,367,120         $3,607,885



     The notes to the financial statements are an integral part of this statement.
                                                 Lee County, Florida
                                                  BALANCE SHEET
                                              GOVERNMENTAL FUNDS
                                               As of September 30, 2009
                                            (amounts expressed in thousands)
                                                                                                          Tourist
                                                                       Lee County                      Development
                                                     General             Library          MSTU          Trust Fund
ASSETS
Cash and equity in pooled cash and investments          $276,097                $48,279    $18,693          $11,754
Cash and cash equivalents
 with fiscal agent
Receivables (net)
 Accounts                                                   4,188                                 92              9
 Special assessments
 Accrued interest                                            511                   125          60              42
Due from other funds                                       1,029                   359         854               8
Due from other governments                                 3,837                             1,104
Inventory                                                    484
Advances                                                  18,251                            75,000
 Total assets                                            304,397                 48,763     95,803           11,813
LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            11,374                  631           410           896
 Accrued liabilities                                        4,414                  141           221            20
 Due to other funds                                         2,868                   67           234            42
 Due to other governments                                   5,260                   58            99             9
 Deposits and overbids                                      2,079
 Unearned revenues                                            134                  811
 Deferred revenues
 Advances                                                                                                    75,000
 Other                                                         70
   Total liabilities                                       26,199                 1,708          964         75,967
Fund Balances:
 Reserved for:
   Advances                                                18,251                           75,000
   Inventory                                                  468
   Debt service
 Unreserved, designated for:
   Next fiscal year's expenditures                         14,870                  517           591
   Unfunded other post employment
     benefits                                              25,000
   Roads revolving loan program                             9,821
   Road construction grants                                 1,700
   Economic incentives                                        805
   Economic development                                    23,350
   Community Corrections Facility                          10,000
   Bequests                                                                       1,156
   Special revenue funds
   Debt service
   Capital projects funds
 Unreserved, undesignated, reported in:
   General fund                                          173,933
   Special revenue funds                                                         45,382     19,248          (64,154)
   Capital projects funds
   Total fund balances                                   278,198                 47,055     94,839          (64,154)
    Total liabilities and fund balances                 $304,397                $48,763    $95,803          $11,813
The notes to the financial statements are an integral part of this statement.                            (continued)



                                                                18
                                              Lee County, Florida
                                               BALANCE SHEET
                                           GOVERNMENTAL FUNDS
                                            As of September 30, 2009
                                          (amounts expressed in thousands)
                                                                      Other               Total
                                                    Capital        Governmental        Governmental
                                                  Improvement         Funds               Funds
ASSETS
Cash and equity in pooled cash and investments          $209,914         $211,378           $776,115
Cash and cash equivalents
 with fiscal agent                                                            24,281          24,281
Receivables (net)
 Accounts                                                                        530           4,819
 Special assessments                                                           6,516           6,516
 Accrued interest                                            393               1,236           2,367
Due from other funds                                         487               4,483           7,220
Due from other governments                                 1,124               4,371          10,436
Inventory                                                                      2,647           3,131
Advances                                                                       5,909          99,160
 Total assets                                            211,918             261,351         934,045
LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            8,465              19,550          41,326
 Accrued liabilities                                           9                 742           5,547
 Due to other funds                                           65               2,395           5,671
 Due to other governments                                     16                 344           5,786
 Deposits and overbids                                                         1,193           3,272
 Unearned revenues                                                               898           1,843
 Deferred revenues                                                             6,130           6,130
 Advances                                                   300               17,846          93,146
 Other                                                                                            70
    Total liabilities                                      8,855              49,098         162,791
Fund Balances:
 Reserved for:
   Advances                                                                    5,909          99,160
   Inventory                                                                   2,647           3,115
   Debt service                                                               25,433          25,433
 Unreserved, designated for:
   Next fiscal year's expenditures                       113,667                             129,645
   Unfunded other post employment
      benefits                                                                                25,000
   Roads revolving loan program                                                                9,821
   Road constructin grants                                                                     1,700
   Economic incentives                                                                           805
   Economic development                                                                       23,350
   Community Corrections Facility                                                             10,000
   Bequests                                                                                    1,156
   Special revenue funds                                                       3,907           3,907
   Debt service                                                                1,521           1,521
   Capital projects funds                                                    104,454         104,454
 Unreserved, undesignated, reported in:
   General fund                                                                              173,933
   Special revenue funds                                                   56,395             56,871
   Capital projects funds                                 89,396           11,987            101,383
   Total fund balances                                   203,063          212,253            771,254
   Total liabilities and fund balances                  $211,918         $261,351           $934,045




                                                   19
                                               Lee County, Florida
            RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
                                   TO THE STATEMENT OF NET ASSETS
                                            As of September 30, 2009
                                          (amounts expressed in thousands)



Fund balances - total governmental funds                                                          $771,254

 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.

   Non-depreciable governmental capital assets                                       $873,497
   Depreciable governmental capital assets, net                                       810,089     1,683,586

  Other long-term assets are not available to pay for current period
  expenditures and, therefore, are deferred in the funds.                                             6,130

  Prepaid assets are not recorded in governmental funds under the modified
  accrual basis of accounting however they are recorded in the statement of net
  assets under full accrual accounting.                                                               1,821

  Accrued liabilities in the statement of net assets include other post-employment
  benefits which have not been funded and therefore based on the modified accrual
  basis of accounting are not included in the governmental funds. These benefits
  were partially funded with a trustee in fiscal year 2009.                                         (34,046)

  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 payable                                                        (235,312)
   Accrued interest payable                                                            (5,584)
   Accreted interest payable                                                           (9,312)
   Variable debt payable                                                                 (222)
   Notes payable                                                                       (4,477)
   Arbitrage payable                                                                     (293)
   Compensated absences                                                               (22,880)     (278,080)

  Internal service funds are used by management to charge the
  costs of certain activities to the individual funds.
   Assets and liabilities of the internal service funds that are
    reported with governmental activities                                                           90,100

  Net assets of governmental activities                                                          $2,240,765

The notes to the financial statements are an integral part of this statement.


                                                              20
                                       Lee County, Florida
             STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                                   GOVERNMENTAL FUNDS
                               For the Year Ended September 30, 2009
                                (amounts expressed in thousands)
                                                                         Lee                           Tourist
                                                                       County                       Development
                                                   General             Library          MSTU         Trust Fund
REVENUES
 Taxes                                               $306,254             $20,728        $45,962         $21,880
 Licenses and permits                                     123                              3,723
 Intergovernmental                                     48,403                    762       5,492
 Charges for services                                  54,206                     96       6,028
 Fines and forfeitures                                    189                    402
 Impact fees
 Special assessments
 Miscellaneous                                          16,840               1,319         2,698             228
    Total revenues                                     426,015              23,307        63,903          22,108
EXPENDITURES
 Current
  General government                                   123,479                  2,325     13,664             819
  Public safety                                        203,949                            11,066
  Physical environment                                   8,462                               236
  Transportation                                         3,170
  Economic environment                                   5,572                                            13,235
  Human services                                        18,492                             3,817
  Culture and recreation                                14,890              25,460        13,786
 Capital outlay
  General government                                     1,387                                  7
  Public safety                                          5,114                                 54
  Physical environment                                      37
  Transportation
  Economic environment                                      11
  Human services                                             5                                 18
  Culture and recreation                                   210                  1,882          88
 Debt service
  Principal retirement
  Interest and fiscal charges                                7
   Total expenditures                                  384,785              29,667        42,736          14,054
Excess (deficiencies) of revenues
 over (under) expenditures                              41,230              (6,360)       21,167           8,054
OTHER FINANCING SOURCES
AND (USES)
 Transfers in                                           12,930                 220           473           5,311
 Transfers out                                         (50,998)            (19,198)      (26,217)        (84,905)
 Debt issuance
  Total other financing sources and (uses)             (38,068)            (18,978)      (25,744)        (79,594)
Net change in fund balances                              3,162             (25,338)       (4,577)        (71,540)
Fund balances - beginning                              275,036              72,393        99,416           7,386
Fund balances - ending                               $278,198             $47,055        $94,839        $(64,154)

The notes to the financial statements are an integral part of this statement.                          (continued)




                                                           21
                                      Lee County, Florida
            STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                                  GOVERNMENTAL FUNDS
                              For the Year Ended September 30, 2009
                               (amounts expressed in thousands)
                                                                    Other           Total
                                               Capital           Governmental    Governmental
                                             Improvement            Funds           Funds
REVENUES
 Taxes                                            $40,681             $24,628        $460,133
 Licenses and permits                                 352                  59           4,257
 Intergovernmental                                  8,427              24,866          87,950
 Charges for services                                 213              27,335          87,878
 Fines and forfeitures                                                    802           1,393
 Impact fees                                                            7,003           7,003
 Special assessments                                                    1,515           1,515
 Miscellaneous                                      5,304               7,645          34,034
    Total revenues                                 54,977              93,853         684,163
EXPENDITURES
 Current
  General government                                1,614              39,827         181,728
  Public safety                                                        13,727         228,742
  Physical environment                              1,316               5,337          15,351
  Transportation                                                       48,289          51,459
  Economic environment                                                  6,383          25,190
  Human services                                                        2,495          24,804
  Culture and recreation                            5,020               1,581          60,737
 Capital outlay
  General government                               79,865               3,396          84,655
  Public safety                                                         1,848           7,016
  Physical environment                              6,433                 958           7,428
  Transportation                                      933              64,042          64,975
  Economic environment                                                    111             122
  Human services                                                           11              34
  Culture and recreation                            6,947               9,430          18,557
 Debt service
  Principal retirement                                                 20,283          20,283
  Interest and fiscal charges                                          11,686          11,693
   Total expenditures                             102,128             229,404         802,774
Excess (deficiencies) of revenues
 over (under) expenditures                        (47,151)           (135,551)       (118,611)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                      83,871             195,153          297,958
 Transfers out                                     (2,316)           (124,428)        (308,062)
 Debt issuance                                                            456              456
  Total other financing sources and (uses)         81,555              71,181           (9,648)
Net change in fund balances                        34,404             (64,370)        (128,259)
Fund balances - beginning                         168,659             276,623          899,513
Fund balances - ending                           $203,063            $212,253        $771,254




                                                            22
                                              Lee County, Florida
            RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
               AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
                                   TO THE STATEMENT OF ACTIVITIES
                                   For the Year Ended September 30, 2009
                                       (amounts expressed in thousands)

Net change in fund balances - total governmental funds:                                                ($128,259)

 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/amortized over their estimated useful lives:
                  Expenditures for capital assets                                          $182,787
                  Less current year depreciation and amortization                           (43,569)    139,218
   The net effect of various miscellaneous transactions involving capital and
    intangible assets (i.e., disposals, transfers, donations) is to decrease net assets.                 (10,158)

   Prepaid expenses are not recorded in governmental funds under the modified
   accrual basis of accounting however they are recorded in the statement of
   activities under full accrual accounting.                                                               1,821

   Revenues that were previously reported in the statement of activities and
    are recognized as revenue in the funds.                                                                 (270)

   Debt proceeds provide current financial resources for governmental funds,
    but issuing debt increases long-term liabilities in the statement of net assets.
    Repayment of debt principal is an expenditure in the governmental funds,
    but the repayment reduces long-term liabilities in the statement of net assets.
    Also, governmental funds report the effect of issuance costs, premiums
    and similar items when debt is first issued. These amounts are deferred and
    amortized in the statement of activities.
                   Long- term debt proceeds                                                    (456)
                   Principal payments                                                        20,283       19,827

   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.
                   Early termination benefits                                                 4,414
                   OPEB                                                                      12,363
                   Change in arbitrage payable                                                 (281)
                   Change in compensated absences                                              (227)      16,269

   Interest on long-term debt in the statement of activities is recognized
    as the interest accrues, regardless of when it is due. In the governmental
    funds interest is recognized as an expenditure when it is due. Issue costs,
    premiums, and similar items are deferred and amortized in the statement
    of activities.
                    Accrued interest on bonds                                                   438
                    Accreted interest on capital appreciation bonds                            (858)
                    Amortization of bond issue costs                                            (59)        (479)

   Internal service funds are used by management to charge the
    costs of certain activities to individual funds.
                    The net revenue of the internal service funds is
                    reported with governmental activities.                                                 4,072

 Change in net assets of governmental activities                                                        $42,041

The notes to the financial statements are an integral part of this statement.



                                                      23
                                    Lee County, Florida
         STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                    BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                     GENERAL FUND
                           For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                                                              Variance with
                                                 Budgeted Amounts                             Final Budget -
                                                                                 Actual          Positive
                                              Original            Final         Amounts         (Negative)
REVENUES
 Taxes                                          $298,128          $298,128       $306,254            $8,126
 Licenses and permits                                258               258            123              (135)
 Intergovernmental                                58,133            83,349         48,403           (34,946)
 Charges for services                             67,234            66,145         45,641           (20,504)
 Fines and forfeitures                               503               503            189              (314)
 Miscellaneous                                    14,893            14,956         16,283             1,327
    Total revenues                               439,149           463,339        416,893           (46,446)
EXPENDITURES
 Current
  General government                             152,555           152,290        122,161            30,129
  Public safety                                  205,280           207,010        194,704            12,306
  Physical environment                            12,346            13,735          8,450             5,285
  Transportation                                   5,140             5,139          3,170             1,969
  Economic environment                             4,097            26,391          5,568            20,823
  Human services                                  18,531            19,773         18,491             1,282
  Culture and recreation                          18,694            19,628         14,888             4,740
 Capital outlay
  General government                                 616                570         1,387              (817)
  Public safety                                    5,728              5,872         5,114               758
  Physical environment                                10                 11            37               (26)
  Economic environment                                 6                  6            11                (5)
  Human services                                                                        5                (5)
  Culture and recreation                                                              210              (210)
 Debt service
  Interest and fiscal charges                            7               7                7               0
   Total expenditures                            423,010           450,432        374,203            76,229
Excess of revenues
 over expenditures                                16,139            12,907         42,690            29,783
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                    208,479           214,228         18,975          (195,253)
 Transfers out                                  (246,584)         (250,786)       (50,998)          199,788
   Total other financing sources
          and (uses)                             (38,105)           (36,558)      (32,023)            4,535
Net change in fund balance                       (21,966)           (23,651)       10,667            34,318
Fund balance - beginning                         274,678           274,679        247,878           (26,801)
Fund balance - ending                           $252,712          $251,028       $258,545            $7,517


The notes to the financial statements are an integral part of this statement.




                                                             24
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
              BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                            LEE COUNTY LIBRARY
                     For the Year Ended September 30, 2009
                                     (amounts expressed in thousands)




                                                                                             Variance with
                                           Budgeted Amounts                                  Final Budget -
                                                                                 Actual         Positive
                                        Original            Final               Amounts        (Negative)
REVENUES
  Taxes                                    $20,359            $20,359             $20,728             $369
  Intergovernmental                                               772                 762              (10)
  Charges for services                          92                 92                  96                4
  Fines and forfeitures                        501                501                 402              (99)
  Miscellaneous                              3,664              3,706               1,227           (2,479)
   Total revenues                           24,616             25,430              23,215           (2,215)

EXPENDITURES
  Current
   General government                        2,456              2,456               2,325              131
   Culture and recreation                   27,336             28,111              25,400            2,711
  Capital outlay
   Culture and recreation                   21,183              2,412               1,882              530
    Total expenditures                      50,975             32,979              29,607            3,372
Excess (deficiency) of revenues
 over (under) expenditures                  (26,359)           (7,549)             (6,392)           1,157

OTHER FINANCING SOURCES
  AND (USES)
  Transfers in                                 350                350                 220             (130)
  Transfers out                                               (19,198)            (19,198)               0
     Total other financing sources             350            (18,848)            (18,978)            (130)
Net change in fund balance                  (26,009)          (26,397)            (25,370)           1,027
Fund balance - beginning                    73,044             73,044              72,540             (504)
Fund balance - ending                      $47,035            $46,647             $47,170             $523

The notes to the financial statements are an integral part of this statement.




                                                       25
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
              BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                     MSTU
                     For the Year Ended September 30, 2009
                                    (amounts expressed in thousands)




                                                                                             Variance with
                                           Budgeted Amounts                                  Final Budget -
                                                                                 Actual         Positive
                                        Original              Final             Amounts        (Negative)
REVENUES
 Taxes                                     $45,668             $45,668            $45,962             $294
 Licenses and permits                        5,147               5,147              3,723           (1,424)
 Intergovernmental                           5,678               5,713              5,492             (221)
 Charges for services                        7,256               7,256              6,028           (1,228)
 Miscellaneous                               4,728               4,728              2,593           (2,135)
    Total revenues                          68,477              68,512             63,798           (4,714)

EXPENDITURES
 Current
  General government                        15,300              15,300             13,652            1,648
  Public safety                             11,953              11,966             11,061              905
  Physical environment                         473                 473                236              237
  Human services                             3,953               3,988              3,798              190
  Culture and recreation                    15,172              15,172             13,777            1,395
 Capital outlay
  General government                               6                  6                 7               (1)
  Public safety                                                                        54              (54)
  Human services                                                                       18              (18)
  Culture and recreation                                                               88              (88)
   Total expenditures                       46,857              46,905             42,691            4,214
Excess of revenues
 over expenditures                          21,620              21,607             21,107             (500)

OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                   700              3,700              3,956              256
 Transfers out                              (26,805)          (104,805)          (104,699)             106
   Total other financing sources
      and (uses)                            (26,105)          (101,105)          (100,743)             362
Net change in fund balance                   (4,485)           (79,498)           (79,636)            (138)
Fund balance - beginning                    99,416              99,416             99,708              292
Fund balance - ending                      $94,931             $19,918            $20,072             $154

The notes to the financial statements are an integral part of this statement.




                                                         26
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
              BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                   TOURIST DEVELOPMENT TRUST FUND
                     For the Year Ended September 30, 2009
                                     (amounts expressed in thousands)




                                                                                             Variance with
                                           Budgeted Amounts                                  Final Budget -
                                                                                 Actual         Positive
                                        Original            Final               Amounts        (Negative)
REVENUES
  Taxes                                    $22,317            $22,317             $21,871            $(446)
  Miscellaneous                                160                165                 216               51
   Total revenues                           22,477             22,482              22,087             (395)

EXPENDITURES
  Current
   General government                          832                831                 819               12
   Economic environment                     13,417             13,418              13,053              365
    Total expenditures                      14,249             14,249              13,872              377
Excess (deficiency) of revenues
 over (under) expenditures                    8,228             8,233               8,215              (18)

OTHER FINANCING SOURCES
  AND (USES)
  Transfers in                                2,501            79,358              80,311              953
  Transfers out                             (10,359)          (85,359)            (84,905)             454
     Total other financing sources           (7,858)           (6,001)             (4,594)           1,407
Net change in fund balance                     370              2,232               3,621            1,389
Fund balance - beginning                      7,387             7,386               7,421               35
Fund balance - ending                       $7,757             $9,618             $11,042           $1,424

The notes to the financial statements are an integral part of this statement.




                                                       27
                                                                                           Lee County, Florida
                                                                                 STATEMENT OF NET ASSETS
                                                                                       PROPRIETARY FUNDS
                                                                                       As of September 30, 2009
                                                                                (amounts expressed in thousands)
                                                                                                                                                                                 Governmental
                                                                                            Business-type Activities - Enterprise Funds
                                                                                                                                                                                   Activities
                                                           Port           Water and           Transportation            Solid           Other Non-Major          Total             Internal
                                                         Authority        Wastewater              Facilities           Waste                Transit         Enterprise Funds     Service Funds

     ASSETS
     Current Assets:
      Cash and equity in pooled cash and investments         $77,229           $75,984                 $21,833              $5,610             $11,009              $191,665              $99,518
      Cash and cash equivalents with fiscal agent                                                                           42,706                                    42,706
      Investments                                             20,713                                                                                                  20,713
      Investments with fiscal agent                                                                                         51,279                                    51,279
      Restricted assets                                       19,441            25,672                  15,688              18,534                                    79,335
      Receivables (net)                                           7,315          9,138                         94               5,518             1,272               23,337                    803
      Due from other funds                                                          6                          13                312                   91                 422                 1,346
      Due from other governments                                     2            767                                                                  21                 790                    33
      Inventories                                                  610            167                      325                                                           1,102                  242
      Other                                                      975                  32                    10                  44                     39              1,100                  215
        Total current assets                                 126,285           111,766                  37,963             124,003              12,432               412,449              102,157
     Noncurrent Assets:




28
      Restricted assets                                       63,174            31,384                     196              24,244                                   118,998
      Receivables (net)                                                                                                         1,880                                    1,880
      Capital assets:
        Non-depreciable                                      158,980           144,615                  50,437              32,427                    925            387,384                  2,460
        Depreciable                                          683,385           729,439                 291,437             355,697              26,333             2,086,291               41,944
        Less accumulated depreciation and amortization       (146,334)        (260,490)                (66,028)           (105,436)             (17,786)            (596,074)             (30,887)
      Intangible assets (net)                                        19                                                                                                    19
      Unamortized bond costs (net)                                3,962          1,200                   2,410                 303                                     7,875
        Total noncurrent assets                              763,186           646,148                 278,452             309,115                9,472            2,006,373               13,517
          Total assets                                       889,471           757,914                 316,415             433,118              21,904             2,418,822              115,674
     LIABILITIES
     Current liabilities:
      Contracts and accounts payable                              7,445          3,872                     736                  7,280                 414             19,747                  2,401
      Accrued liabilities                                         7,520          2,756                   1,017                   690              2,425               14,408                    458
      Refunds and rebates                                         3,115                                                                                                  3,115
      Due to other funds                                              8           237                          31                 11                   18                 305                    77
      Due to other governments                                     315            166                          21                105                   56                 663                    16
      Customer deposits                                            903                 2                                          15                                      920
      Deferred revenues                                            856            276                                                                 695                1,827
      Self-insurance claims payable                                                                                                                                                           9,831
      Compensated absences                                         731                 7                     1                     1                    3               743                       1
      Notes Payable - current                                      325                                  21,600                                        600            22,525
                                                                                                                                                                                      (continued)
                                                                                                    Lee County, Florida
                                                                                            STATEMENT OF NET ASSETS
                                                                                                  PROPRIETARY FUNDS
                                                                                                  As of September 30, 2009
                                                                                           (amounts expressed in thousands)
                                                                                                                                                                                          Governmental
                                                                                                     Business-type Activities - Enterprise Funds
                                                                                                                                                                                            Activities
                                                                Port                 Water and          Transportation           Solid           Other Non-Major          Total             Internal
                                                              Authority              Wastewater            Facilities           Waste                Transit         Enterprise Funds     Service Funds

     Current liabilities payable from restricted assets:
      Contracts and accounts payable                                                        7,232                       70                                                        7,302
      Accrued liabilities                                           10,586                  4,342                 4,537                  4,249                                 23,714
      Due to other governments                                                              1,629                       15                                                        1,644
      Due to other funds                                                                                          2,935                                                           2,935
      Customer deposits                                                                     5,501                        3                                                        5,504
      Deferred revenues                                                                                           1,518                                                           1,518
      Notes payable                                                                         1,838                                                                                 1,838
      Revenue bonds payable - current                                8,506                  4,650                 6,060              14,048                                    33,264
          Total current liabilities                                 40,310                 32,508                38,544              26,399                4,211              141,972               12,784


     Noncurrent liabilities:
      Self - insurance claims payable                                                                                                                                                                  9,708




29
      Compensated absences                                             390                   891                    256                   212                  489                2,238                  226
      Notes payable                                                  4,507                 34,448                 2,400                                    2,700               44,055
      Revenue bonds payable                                        358,951                163,358               174,709             151,051                                   848,069
      Landfill closure and postclosure costs                                                                                         11,843                                    11,843
      Advances                                                         193                                        5,821                                                           6,014
      Other                                                                                                                               367                                       367
          Total noncurrent liabilities                             364,041                198,697               183,186             163,473                3,189              912,586                  9,934
            Total liabilities                                      404,351                231,205               221,730             189,872                7,400            1,054,558               22,718


     NET ASSETS
      Invested in capital assets, net of related debt              350,005                409,269                71,888             133,983                6,172              971,317               13,517
      Restricted for:
        Capital projects                                            34,423                 21,913                                                                              56,336
        Debt service                                                 8,860                  8,220                 9,838              14,289                                    41,207
        Renewal and replacement                                        499                  9,748                 1,911                  1,500                                 13,658
      Unrestricted                                                  91,333                 77,559                11,048              93,474                8,332              281,746               79,439
            Total net assets                                      $485,120               $526,709               $94,685            $243,246             $14,504             1,364,264              $92,956


     Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.                                                                     2,856
     Net assets of business-type activities                                                                                                                                $1,367,120
     The notes to the financial statements are an integral part of this statement.
                                                                                      Lee County, Florida
                                                       STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                                   PROPRIETARY FUNDS
                                                                          For the Year Ended September 30, 2009
                                                                            (amounts expressed in thousands)

                                                                                         Business-type Activities - Enterprise Funds                                              Governmental
                                                                                                                                                                                    Activities
                                                       Port           Water and            Transportation                              Other Non-Major          Total               Internal
                                                     Authority        Wastewater              Facilities          Solid Waste              Transit         Enterprise Funds       Service Funds

     OPERATING REVENUES
      User fees                                          $45,515           $83,962                                       $68,428               $3,297              $201,202             $113,906
      Tolls                                                                                        $36,739                                                           36,739
      Rentals and franchise fees                           5,029              190                                          1,586                      10                6,815
      Concessions                                         35,222                                                                                                     35,222
      Miscellaneous                                          229             1,555                     421                16,853                      33             19,091
        Total operating revenues                          85,995            85,707                  37,160                86,867                 3,340              299,069              113,906
      Less: Rebates                                        (2,367)                                                                                                      (2,367)
        Net operating revenues                            83,628            85,707                  37,160                86,867                 3,340              296,702              113,906

     OPERATING EXPENSES
      Salaries and wages                                  19,642            14,205                   3,273                 3,236                 9,325               49,681                2,471
      Employee benefits                                   12,092             7,665                   2,176                 1,987                 6,288               30,208                1,279




30
      Contractual services, materials and supplies        18,533            19,316                   1,792                49,754                 2,978               92,373               17,514
      Utilities                                            5,412             7,073                     345                 1,249                     230             14,309                2,811
      Repairs and maintenance                              2,268             3,486                     346                   977                 1,367                  8,444              3,247
      Insurance                                            2,504             1,219                   1,347                   436                     645                6,151              6,000
      Insurance claims                                                                                                                                                                    74,093
      Other                                                1,767             4,121                     879                   906                     813                8,486                  707
      Depreciation and amortization                       19,339            29,667                   8,083                12,620                 1,881               71,590                3,606
        Total operating expenses                          81,557            86,752                  18,241                71,165               23,527               281,242              111,728
     Operating income (loss)                               2,071            (1,045)                 18,919                15,702               (20,187)              15,460                2,178


     NON-OPERATING REVENUES (EXPENSES)
      Investment earnings                                    829             1,849                     418                   603                     220                3,919              1,291
      Taxes                                                                                                                1,524                                        1,524
      Grants                                                 386                                                             653                 4,621                  5,660               (973)
      Interest expense                                    (21,782)          (9,912)                (10,350)               (8,819)                                   (50,863)
      Gain (loss) on disposal of capital assets                  21           (579)                        (3)               (90)                     99                 (552)              (809)
      Passenger facility charges                          14,942                                                                                                     14,942
      Other revenues                                              7           533                      278                    27                      19                  864                  609
      Other expenses                                           (6)            (205)                    (140)                  (4)                                      (355)                   (21)
        Total non-operating revenues (expenses)            (5,603)          (8,314)                  (9,797)              (6,106)                4,959              (24,861)                    97

                                                                                                                                                                                     (continued)
                                                                                                      Lee County, Florida
                                                                 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                                                  PROPRIETARY FUNDS
                                                                                         For the Year Ended September 30, 2009
                                                                                           (amounts expressed in thousands)

                                                                                                         Business-type Activities - Enterprise Funds                                             Governmental
                                                                                                                                                                                                   Activities
                                                                Port                 Water and             Transportation             Solid            Other Non-Major         Total               Internal
                                                             Authority               Wastewater               Facilities             Waste                 Transit        Enterprise Funds       Service Funds


     Income (loss) before contributions
      and transfers                                                  (3,532)                (9,359)                  9,122                    9,596            (15,228)                (9,401)            2,275


     Capital contributions                                          19,895                 21,418                      304                     654               5,277              47,548                      5
     Transfers in                                                                                                                              370             13,121               13,491                1,932
     Transfers out                                                                             (19)                  (5,300)                                                           (5,319)
      Total contributions and transfers                             19,895                 21,399                    (4,996)                  1,024            18,398               55,720                1,937


     Change in net assets                                           16,363                 12,040                    4,126                10,620                 3,170              46,319                4,212

     Total net assets - beginning                                  468,757                514,669                   90,559               232,626               11,334            1,317,945               88,744




31
     Total net assets - ending                                    $485,120               $526,709                  $94,685             $243,246               $14,504           $1,364,264              $92,956




     Change in net assets                                                                                                                                                          $46,319
     Adjustment to reflect the consolidation of internal service fund activities to related enterprise funds.                                                                            140
     Change in net assets of business-type activities                                                                                                                              $46,459




     The notes to the financial statements are an integral part of this statement.
                                                                           Lee County, Florida
                                                                  STATEMENT OF CASH FLOWS
                                                                        PROPRIETARY FUNDS
                                                                  For the Year Ended September 30, 2009
                                                                     (amounts expressed in thousands)


                                                                                         Business-Type Activities - Enterprise Funds                                        Governmental
                                                                                                                                       Other                                  Activities
                                                        Port             Water and          Transportation        Solid          Non-Major                Total               Internal
                                                      Authority         Wastewater             Facilities         Waste            Transit           Enterprise Funds       Service Funds
CASH FLOWS FROM OPERATING
 ACTIVITIES
   Receipts from customers and users                     $83,568             $86,692               $37,482          $89,265              $4,528             $301,535              $12,099
   Receipts from interfund services provided                                                                                                                                      103,143
   Cash received (returned) from customer deposits             395                (1)                       1               4                                       399
   Payments to suppliers                                  (29,016)           (31,232)                (4,106)         (51,626)             (5,465)            (121,445)           (100,677)
   Payments to employees                                  (24,041)           (19,492)                (4,997)          (4,495)            (13,538)             (66,563)              (3,367)
   Payments for interfund services used                    (4,026)            (7,053)                (1,289)          (1,505)             (4,161)             (18,034)              (1,031)
Net cash provided by (used in)
 operating activities                                     26,880              28,914                27,091           31,643              (18,636)              95,892              10,167
CASH FLOWS FROM NONCAPITAL
 FINANCING ACTIVITIES
   Non-capital grants received                                 390                                                        743            13,121                14,254
   Non-capital grants issued                                                                                              (90)                                       (90)           (1,087)
   Transfers in                                                                                                           370             6,752                   7,122             2,027
   Transfers out                                                                                     (3,897)                                                      (3,897)
Net cash provided by (used in) noncapital
 financing activities                                          390                   0               (3,897)           1,023             19,873                17,389                 940
CASH FLOWS FROM CAPITAL AND
 RELATED FINANCING ACTIVITIES
   Proceeds from capital debt                                                 13,200                                                      1,500                14,700
   Proceeds from special assessments                                             148                                                                                148
   Proceeds from loan repayment                                                                                            80                                        80
   Advances from other funds                                                                         7,321                                                        7,321
   Capital contributions                                  24,014               9,987                   304                                4,383                38,688
   Proceeds from passenger facilities charges             14,849                                                                                               14,849
   Additions to capital assets                            (14,854)           (37,317)                (6,103)          (8,064)             (3,071)             (69,409)              (2,926)
   Principal paid on bonds, loans, leases,
     and interfund loans                                   (8,837)            (6,765)              (20,531)          (13,590)              (600)              (50,323)
   Interest paid on bonds, loans, leases,
     and interfund loans                                  (21,421)            (9,264)                (9,657)          (8,850)                                 (49,192)
   Proceeds from sale of capital assets                         23               233                                                           102                  358               420
Net cash provided by (used in) capital and related
 financing activates                                       (6,226)           (29,778)              (28,666)          (30,424)             2,314               (92,780)              (2,506)
CASH FLOWS FROM INVESTING ACTIVITIES
   Proceeds from sale and maturities of
     investments                                          26,895                                                                                               26,895
   Purchase of investments                                (46,982)                                                   (61,234)                                (108,216)
   Interest on investments                                     441             2,213                   529                778                  235                4,196             1,521
Net cash provided by (used in) investing activities       (19,646)             2,213                   529           (60,456)                  235            (77,125)              1,521
Net increase (decrease) in cash and
 equity in pooled cash and investments                      1,398              1,349                 (4,943)         (58,214)              3,786              (56,624)             10,122
Cash and cash equivalents at beginning of year           130,030             130,267                42,585          131,217               7,223               441,322              89,396
Cash and cash equivalents at end of year                $131,428            $131,616               $37,642          $73,003             $11,009             $384,698              $99,518
                                                                                                                                                                              (continued)




                                                                                            32
                                                                                            Lee County, Florida
                                                                                 STATEMENT OF CASH FLOWS
                                                                                         PROPRIETARY FUNDS
                                                                                 For the Year Ended September 30, 2009
                                                                                      (amounts expressed in thousands)


                                                                                                          Business-Type Activities - Enterprise Funds                                         Governmental
                                                                                                                                                        Other                                   Activities
                                                                      Port                Water and          Transportation        Solid           Non-Major                Total               Internal
                                                                   Authority             Wastewater             Facilities         Waste            Transit            Enterprise Funds       Service Funds
Classified as:
   Current assets
         Cash and equivalent                                            $77,229               $75,984               $21,833           $5,610             $11,009              $191,665              $99,518
         Cash and equivalent with fiscal agent                                                                                        42,706                                     42,706
         Restricted assets                                               19,441                10,227                 4,632             6,110                                    40,410
   Non-current
         Restricted assets                                               34,758                45,405                11,177           18,577                                    109,917

Totals                                                                $131,428               $131,616               $37,642          $73,003             $11,009              $384,698              $99,518


NONCASH INVESTING, CAPITAL,
 AND FINANCING ACTIVITIES
   Contributions of capital assets                                                            $11,430                                   $654                $216                $12,300
   Non-cash capital asset transfer                                           $193                                                                                                     193
   Increase (decrease) in fair value of investments                           (30)                151                   $37                140                   12                   310              $111




RECONCILIATION OF OPERATING INCOME
 (LOSS) TO NET CASH PROVIDED BY
 (USED IN) OPERATING ACTIVITIES:
Operating income (loss)                                                  $2,071               ($1,045)              $18,919          $15,702             ($20,187)              $15,460              $2,178
Adjustments to reconcile operating income (loss)
 to net cash provided by (used in) operating
 activities:
     Depreciation and amortization                                       19,339                29,667                 8,083           12,620                1,881                71,590               3,606
     Other revenues                                                              7                523                   285             1,551                    19                 2,385               610
     (Increase) decrease in accounts receivable                               945                 508                        99            836                  514                 2,902              (312)
     Decrease in due from other funds                                                              35                         1             10                   58                   104               919
     (Increase) decrease in due from other governments                           4               (558)                                        6                 (21)                 (569)              119
     (Increase) decrease in inventories                                       179                 (97)                  207                                                           289                    (9)
     (Increase) decrease in other assets                                      701                     8                      46             13                  (27)                  741               263
     Increase (decrease) in contracts and accounts payable                    694               1,173                    (52)              (277)             (128)                  1,410               694
     Increase (decrease) in accrued liabilities                           3,600                  (715)                 (374)               (106)             (481)                  1,924                  (88)
     (Decrease) in refunds and rebates                                   (1,338)                                                                                                    (1,338)
     Increase (decrease) in due to other funds                               (110)                (11)                       30              (3)             (758)                   (852)                 (30)
     Increase (decrease) in due to other governments                            18               (361)                   (59)              (289)             (131)                   (822)                 (34)
     Increase (decrease) in customer deposits                                 395                  (1)                        1               4                                       399
     Increase (decrease) in deferred revenues                                 326                 (80)                   (67)                                   695                   874
     Increase (decrease) in compensated absences                                50               (122)                   (28)               (12)                (70)                 (182)                 (30)
     Increase (decrease) in other liabilities                                   (1)               (10)                                  1,588                                       1,577             2,281
Total adjustments                                                        24,809                29,959                 8,172           15,941                1,551                80,432               7,989
Net cash provided by (used in) operating
 activities                                                             $26,880               $28,914               $27,091          $31,643             ($18,636)              $95,892             $10,167




The notes to the financial statements are an integral part of this statement.




                                                                                                           33
                                   Lee County, Florida
                           STATEMENT OF FIDUCIARY NET ASSETS
                                   FIDUCIARY FUNDS
                                 As of September 30, 2009
                                   (amounts expressed in thousands)


                                                                   Other
                                                              Postemployment
                                                               Benefits Trust
                                                                   Fund             Agency Funds

ASSETS
Cash and equity in pooled cash                                                             $55,148
  and investments
Cash and cash equivalents with fiscal agent                             $42,664
Accounts receivable (net)                                                                      189
Due from other governments                                                                     354
  Total assets                                                            42,664            55,691

LIABILITIES
Contracts and accounts payable                                                                 575
Due to individuals                                                                           4,460
Due to other governments                                                                    23,352
Bonds and deposits                                                                          27,304
  Total liabilities                                                             0          $55,691

NET ASSETS
Held in trust for other postemployment benefits                         $42,664


The notes to the financial statements are an integral part of this statement.




                                                       34
                                  Lee County, Florida
                    STATEMENT OF CHANGES IN PLAN NET ASSETS
                         For the Year Ended September 30, 2009
                           (amounts expressed in thousands)



                                                                                Other
                                                                           Postemployment
                                                                            Benefits Trust
                                                                                Fund

Additions
   Contributions
      Employer contributions                                                        $42,594

              Total contributions                                                    42,594
   Investment earnings
       Interest income                                                                  70

              Net investment earnings                                                   70
              Change in net assets                                                   42,664
Net assets held in trust for other postemployment benefits
Beginning of year                                                                        0
End of year                                                                         $42,664


The notes to the financial statements are an integral part of this statement.




                                           35
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                    36
Notes to the
 Financial
Statements




     37
     37
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                               September 30, 2009

                            Index to Notes to Basic Financial Statements

Accounts Receivable- Defined……………………………… 43               Interfund Transactions- Transfers In/Out………………… 59
Accrual Basis- Full…………………………………………… 40                   Internal Service Activity…………………………………… 40
Accrual Basis- Modified…………………………………… 41                  Internal Service Fund Description………………………… 42
Agency Fund Description…………………………………… 42                  Inventories- Defined………………………………………… 44
Arbitrage Rebate Payable…………………………………… 69                 Investments- Defined……………………………………… 43
Assets, Liabilities, and Net Assets or Equity……………… 43    Landfill Closure & Postclosure Care Liability…………… 79
Advances To/From Other Funds………………………… 44                 Leases- Capital……………………………………………… 60
Basic Financial Statements- Defined……………………… 39           Leases- Operating…………………………………………… 60
Blended Component Unit…………………………………… 39                   Litigation……………………………………………………… 80
Bond Resolutions for Debt Issues………………………… 64             Long-term Internal Advances……………………………… 69
Budgetary Information……………………………………… 42                   Long-term Obligations……………………………………… 60
Budgeted and Actual Results……………………………… 45                Long-term Debt- Changes In……………………………… 70
Budgets and Budgetary Accounting……………………… 42              Library Fund Description…………………………………… 41
Business-type Activity……………………………………… 41                  Measurement Focus, Basis of Accounting,
Capital Asset Activity……………………………………… 54                    and Financial Statement Presentation……………………40
Capital Assets- Defined……………………………………… 44                 MSTU Fund Description…………………………………… 41
Capital Assets Lives………………………………………… 44                   Net Assets Defined………………………………………… 45
Capital Improvement Fund Description……………………41            Non-major Governmental Fund
Capitalized Interest………………………………………… 57                     Description………………………………………………… 42
Cash and Equity in Pooled Cash and                        Non-major Enterprise Fund Description………………… 42
  Investments- Defined……………………………………… 43                  Notes Payable………………………………………………… 66
Cash and Equity in Pooled Cash and Investments……..… 48    Other Information…………………………………………… 78
Commitments and Contingencies………………………… 79                Other Obligations…………………………………………… 69
Compensated Absences- Defined………………………… 45                Other Post Employment Benefits………………………… 75
Compliance with Finance Related Legal                     Port Authority Fund Description………………………… 41
   and Contractual Provisions……………………………… 47              Prepaid Items- Defined……………………………………… 44
Concentration of Credit Risk……………………………… 51               Property Taxes……………………………………………… 46
Construction Commitments………………………………… 57                  Proprietary Fund Statements- Description……………… 40
Credit Risk…………………………………………………… 50                        Receivables…………………………………………………… 52
Custodial Credit Risk…………………………………………51                   Reporting Entity……………………………………………… 39
Defeased Bonds……………………………………………… 64                       Restricted Assets………………………….………………… 53
Deferred Revenues- Defined……………………………… 44                 Retirement Plan……………………………………………… 78
Deficit Fund Net Assets………………………………………47                  Revenue Bonds……………………………………………… 60
Depreciation Expense……………………………………… 57                    Revenue Bonds- Debt Service Requirements………………63
Detail Notes on All Funds……………………………………48                 Risk Management…………………………………………… 78
Due From/Due To Defined………………………………… 43                   Segment Information- Port Authority…………………… 73
Fund Equity- Defined……………………………………… 45                    Self-Insurance Claims Payable……………………………… 69
Fund Organization…………………………………………… 40                     Solid Waste Fund Description……………………………… 42
GASB Statement 20………………………………………… 41                      Stewardship, Compliance, and
General Fund Description……………………………………41                    Accountability…………………………………………… 47
Governmental Fund Financial                               Summary of Significant Accounting Policies………………39
   Statements- Description………………………………… 41                Tourist Development Trust Fund Description…………… 41
Governmental Major Fund Descriptions………………… 41            Transportation Facilities Fund Description……………… 42
Government-wide and Fund                                  Unamortized Discounts, Premiums,
   Financial Statements- Description……………………… 39            and Issue Costs- Defined…...…………………………… 45
Indirect Expenses…………………………………………… 40                     Unamortized Gains or Losses- Defined…………………… 45
Intangible Assets- Defined………………………………… 44                Unearned Revenues- Defined……………………………… 44
Interest Rate Risk…………………………………………… 51                    Use of Estimates……………………………………………… 42
Interfund Transactions- Due To/From…………………… 58            Variable Debt………………………………………………… 65
Interfund Transactions- Advances To/From……………… 58         Water & Wastewater Fund Description…………………… 42

                                                         38
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2009


NOTE I. SUMMARY OF SIGNIFICANT                                   The departments and divisions, of the Board and the
ACCOUNTING POLICIES                                              Constitutional Officers as well as the Lee County
                                                                 Port Authority (the Port Authority), a blended
                                                                 component unit, are included in the Lee County
Reporting Entity                                                 Comprehensive Annual Financial Report.


L   ee County (the County) was founded in 1887 as
    a political subdivision of the State of Florida
established by Article VIII, Section 1(f), Florida
                                                                 Blended Component Unit
Constitution. In 1996 by adoption of Lee County
Ordinance No. 96-01 the County became a charter
county as allowed by Article VIII, Section 1(c),
                                                                 T   he Port Authority is a dependent political
                                                                     subdivision of the County as defined in Chapter
                                                                 189, Florida Statutes. The Port Authority was created
Florida Constitution, and Chapter 125.82, Florida
Statutes. Pursuant to Article VIII, Section 1(g), Florida        by Chapter 63-1541, Laws of Florida, and by adoption
Constitution, as a charter county the County has all             of Resolution No. PA-87-8-9. The legal authority by
powers of self-government not inconsistent with                  which the Port Authority operates is found in
general law, or with special law approved by vote. It            Chapter 63-1541, Laws of Florida, and Chapters 125
also gives the County authority to enact ordinances              and 332, Florida Statutes. The Port Authority is
that are not inconsistent with general law.                      included in the County’s reporting entity because of
                                                                 the significance of the operational and financial
The County is governed by an elected Board of                    relationships with the County. This component unit
County Commissioners (the Board), which is                       has substantively the same governing body as the
governed by Title XI, Chapters 124-164, Florida                  Board, and is accounted for as a Board enterprise
Statutes, and regulations. In addition to the members            fund.
of the Board, there are five elected Constitutional
Officers: Clerk of Circuit Court, Property Appraiser,            Complete financial statements of the Port Authority
Sheriff, Supervisor of Elections, and Tax Collector.             component unit can be obtained as follows:
The Constitutional Officers maintain separate
                                                                 Lee County Port Authority
accounting records and budgets.
                                                                 1100 Terminal Access Road, Suite 8671
                                                                 Fort Myers, Florida 33913
The accompanying financial statements present the
financial position and results of operations of the
entity as a whole, by major fund, and non-major
funds in aggregate, that are governed by the Board               Government-Wide and Fund Financial
and the Constitutional Officers of Lee County,                   Statements
Florida.

As required by generally accepted accounting
principles (GAAP), the financial statements of the
                                                                 T   he government-wide financial statements and
                                                                     the major-fund financial statements along with
                                                                 the notes to the financial statements comprise the
reporting entity include those of Lee County (the                basic financial statements. The government-wide
primary government) and its component units. A                   financial statements (the statement of net assets and
component unit is a legally separate organization for            the statement of activities) concentrate on the
which the elected officials of the primary                       County as a whole and do not emphasize fund types
government are financially accountable. In addition,             but rather a governmental or a business-type
a component unit may be another organization for                 classification, which are presented in separate
which the nature and significance of its relationship            columns. The governmental activities and business-
with a primary government is such that exclusion                 type activities comprise the primary government.
would cause the reporting entity’s financial                     Neither fiduciary funds nor component units that
statements to be misleading or incomplete.                       are fiduciary in nature are included. General




                                                            39
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


governmental and inter-governmental revenues                  from outside entities for insurance, employee’s
support the governmental activities, whereas the              portion of insurance, auto and equipment repair,
business-type activities are primarily supported by           and participating governments in the radio program
user fees and charges for services. The purpose of            for the government communications network.
the government-wide financial statements is to
allow the user to be able to determine if the County
is in a better or worse financial position than the           Measurement Focus, Basis of
prior year.
                                                              Accounting, and Financial Statement
The statement of activities reflects the expenses of a        Presentation
given function or program, which are offset by
program revenues. Program revenues are defined as
charges for services, operating grants and
contributions, and capital grants and contributions
                                                              T   he accounts of the County are organized on the
                                                                  basis of funds, each of which is considered a
                                                              separate accounting entity. The operations of each
directly associated with a given function. Taxes are          fund are accounted for with a separate set of self-
reported under general revenue.                               balancing accounts that comprise its assets,
                                                              liabilities, fund equity or net assets, revenues, and
The County’s major funds are presented in separate            expenditures      or   expenses, as appropriate.
columns on the governmental fund financial                    Government resources are allocated to and
statements and the proprietary fund financial                 accounted for in individual funds based upon the
statements. The definition of a major fund is one that        purpose for which they are to be spent and the
meets certain criteria set-forth in Governmental              means by which spending activities are controlled.
Accounting Standards Board Statement Number 34,
Basic Financial Statements- and Management’s                  Basis of accounting refers to when revenues and
Discussion and Analysis- for State and Local                  expenditures, or expenses, are recognized in the
Governments (GASB 34). The funds that do not meet             accounts and reported in the financial statements.
the criteria of a major fund are considered non-              Basis of accounting relates to the timing of the
major funds and are combined into a single column             measurements made, regardless of the measurement
on the fund financial statements. However, as                 focus applied.
permitted the County elects to present the Library
and MSTU as major funds although they do not                  The government-wide financial statements are
meet the defined criteria.                                    prepared on a full accrual basis using the economic
                                                              resources measurement focus, as are the proprietary
The County allocates indirect expenses and                    fund financial statements. Revenues are recorded
therefore reports this allocation in a separate column        when earned and expenses are recorded when a
on the government-wide statement of activities.               liability is incurred. Property taxes are recognized in
                                                              the year for which they are levied. Grants and
The effect of interfund activity has been removed             similar items are recognized as revenues as soon as
from the government-wide financial statements.                all of the eligibility requirements have been met.
                                                              Fiduciary fund financial statements are also
Internal service activity is reported in full on the          prepared on an accrual basis.
proprietary fund financial statements. The internal
service funds are combined and thus reported in a             Proprietary funds record both operating and non-
single summary column on the proprietary fund                 operating revenues and expenses. Operating
financial statements. However, the internal service           revenues are those that are obtained from the
activity has been eliminated except for the outside           operations of the proprietary fund that include user
activity and is combined with the governmental                fees, tolls, rental and franchise fees, and concessions.
activities on the government-wide financial                   Non-operating revenues are not related to the
statements. The outside activities are premiums paid          operations of the proprietary fund and include




                                                         40
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


taxes, interest earnings, grants, and passenger                General Fund
facility charges. Operating expenses represent the             The General Fund is the general operating fund of
cost of operations, which includes depreciation.               the County that is used to account for all financial
Non-operating expenses are not related to                      resources, except those required to be accounted for
operations such as interest expense.                           in another fund.

Governmental fund financial statements are                     Lee County Library
prepared on the modified accrual basis using the               The Library is used to account for ad valorem taxes
current financial resources measurement focus.                 and governmental grant funds designated to operate
Under the modified accrual basis, revenues are                 and maintain the County’s public library system.
recognized when they become measurable and
available as net current assets. The County considers          MSTU
all revenues, except revenues from grants, available           The Municipal Service Taxing Unit (MSTU) is used
if they are collected within sixty days after year-end.        to account for ad valorem taxes, building license and
Grant revenue is recorded as earned if collected               permit fees, State revenue sharing, administration
within one year after year-end. Primary revenues,              fees, charges for Animal Services, and other
such as property taxes, special assessments, inter-            revenues, and expenditures to be used in the
governmental revenues, charges for services, sales             unincorporated areas of the County for services
and franchise taxes, rents, and interest are treated as        rendered.
susceptible to accrual under the modified accrual
basis and so have been recognized as revenues.                 Tourist Development Trust Fund
Expenditures reported in governmental fund                     The Tourist Development Trust Fund is used to
financial statements are generally recognized under            account for the five percent tax on rents for
the modified accrual basis of accounting when the              temporary lodgings. This tax, approved by a voter
related fund liability is incurred. An exception to            referendum in 1982, is restricted for promotion of
this general rule includes principal and interest on           tourism and specific projects that have been
general long-term debt, which is recognized when               identified as encouraging tourism such as beach and
due, and compensated absences which are accrued                shoreline improvements, the William Hammond
when matured.                                                  Stadium, and the future Red Sox Stadium. The debt
                                                               service and operations for the stadiums are also
The business-type activities reported in the                   allowed to be paid from this tax.
government-wide        financial   statements     and
proprietary funds follow private sector standards              Capital Improvement
issued prior to December 1, 1989, to the extent those          Capital Improvement is used to account for ad
standards do not conflict with Governmental                    valorem taxes and other revenues, and expenditures
Accounting Standards Board statements. However,                to be used for the acquisition or construction of
pursuant to Government Accounting Standards                    major non-transportation related capital facilities.
Board Statement Number 20, Accounting and
Financial Reporting for Proprietary Funds and Other            The County reports the following major funds in the
Governmental Entities That Use Proprietary Fund                proprietary fund financial statements:
Accounting, the County has elected not to apply
accounting standards issued after November 30,
                                                               Port Authority
1989, by the Financial Accounting Standards Board.
                                                               The Lee County Port Authority is used to account
                                                               for the activities related to the operation of the
When both restricted and unrestricted resources are
                                                               County owned aviation facilities, including
available, restricted resources will be used first for
                                                               Southwest Florida International Airport and Page
incurred expenses, and then unrestricted as needed.
                                                               Field General Aviation Airport.
The County reports the following major funds in the
governmental fund financial statements:




                                                          41
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


Water and Wastewater                                      such as fire impact fees, road impact fees for the City
The Lee County Water and Wastewater System is             of Bonita Springs, school impact fees for the Lee
used to account for the activities related to the         County School Board, or license plate tag fees
operation of the County owned water and                   collected on behalf of the State of Florida.
wastewater system.

Transportation Facilities                                 Use of Estimates
The Lee County Transportation Facilities is used to
account for the activities related to the operation of
the County owned bridges connecting Sanibel and
Captiva Islands to the mainland and the Cities of
                                                          T   he preparation of the financial statements
                                                              requires management to make a number of
                                                          estimates and assumptions relating to the reported
Cape Coral and Fort Myers.                                amounts of assets and liabilities and the disclosure
                                                          of contingent assets and liabilities at the date of the
Solid Waste                                               financial statements and the reported amounts of
The Lee County Solid Waste System is used to              revenues and expenditures during the period.
account for the provision of refuse disposal facilities   Actual results could differ from those estimates.
to the general public.
                                                          Budgetary Information
The County reports the following other fund types:
                                                          Budgets and Budgetary Accounting
Non-major Governmental Funds
The non-major governmental funds are a
combination of special revenue, debt service, and
capital projects.
                                                          B   udgets have been adopted by the Board for all
                                                              Board funds except for agency funds. The
                                                          budgets of the Property Appraiser and the Tax
                                                          Collector are approved by the Florida Department of
Non-major Enterprise Funds                                Revenue. The Sheriff and Supervisor of Elections
The only non-major enterprise fund is Lee County
                                                          prepare budgets for their general funds, which are
Transit. Lee County Transit is used to account for
                                                          submitted to and approved by the Board. The Clerk
the activities related to the operation of the Lee
                                                          of Circuit Court (to the extent of his function as ex-
County Tran bus system, a countywide public
                                                          officio Clerk to the Board) prepares a budget for his
transportation service.
                                                          general fund (noncourt-related activities), which is
                                                          submitted to and approved by the Board. In
Internal Service Funds                                    addition, the Clerk prepares a portion of his
The internal service funds are used to account for        noncourt-related and special revenue budgets based
data processing, risk management health, dental and       on anticipated fees. The Clerk also prepares a court-
liability self-insurance, radio communications, and       related budget, which until July 1, 2009 was
fleet management services on a cost reimbursement         submitted and approved by the Clerk of Courts
basis.                                                    Operations Corporation (CCOC). Effective July 1,
                                                          2009 the Clerk’s court-related budget is submitted to
Trust Fund                                                and approved by the Florida State Legislature in the
The trust fund accounts for the plan assets held for      General Appropriations Act. No budget is prepared
the County’s Other Post-Employment Benefit                for the Property Appraiser’s special revenue fund,
(OPEB) plan.                                              and the Sheriff’s special revenue and internal service
                                                          funds.
Agency Funds
The agency funds are used to account for assets           Capital projects costs are budgeted in the year they
collected and held by the County as an agent for          are anticipated to be obligated. In subsequent years,
individuals, organizations, or other governments,         the unused budget is reappropriated until the




                                                          42
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


project is completed. Proprietary funds are budgeted        various funds of the County that participate.
on a basis consistent with GAAP, except that capital        Interest earned on investments in the pool is
and debt related transactions are based upon cash           allocated to the various funds based upon each
receipts and disbursements. Estimated beginning             fund’s equity balance in the pool during the
fund balances are considered in the budgetary               allocation period.
process. Differences between estimated beginning
fund balances and actual fund balances, if material,        For purposes of the Statements of Cash Flows, the
are submitted to the Board as budget amendments.            County considers cash and equity in pooled cash
The annual budgets serve as the legal authorization         and investments (restricted and unrestricted), and
for expenditures. Expenditures cannot legally               restricted cash and cash equivalents with fiscal agent
exceed the total amount budgeted for each fund.             to be cash and cash equivalents.
The Board must approve all budget amendments,
which change the legally adopted total                      Investments
appropriation for a fund, or amount of a
Constitutional Officers’ draw. Authority to transfer        The County reports all investments at fair value,
budget within a fund is delegated to the County             with the exception of: repurchase agreements,
Manager or Budget Director.                                 money market mutual funds, State Board of
                                                            Administration (SBA) Local Government Surplus
If, during the fiscal year, additional revenues             Funds Trust Fund Investment Pool (LGIP), and the
become available for appropriation in excess of             Florida Local Government Investment Trust that are
those estimated in the budget, the Board may make           reported at amortized cost which approximates fair
supplemental appropriations by resolution for the           value. All fair valuations are based on quoted
year up to the amount of such excess. During the            market prices. The fair value of the position in the
fiscal year the Board, in accordance with Florida           LGIP, an external 2a7-like investment pool, and the
Statutes,    approved     various     supplemental          money market mutual funds are the same as the
appropriations. Appropriations lapse at fiscal year-        value of the pool/fund shares. The SBA Fund B
end.                                                        Surplus Funds Trust Fund (Fund B) is accounted for
                                                            as a fluctuating NAV pool.
Assets, Liabilities, and Net Assets or
Equity                                                      Accounts Receivable

                                                            The trade accounts receivable of the County are
Cash and Equity         in   Pooled    Cash     and
                                                            recorded in the government-wide, governmental,
Investments                                                 and proprietary fund financial statements and are
                                                            net of an allowance for doubtful accounts, which

T   he County considers cash and equity in pooled
    cash and investments to be cash on hand,
demand deposits, highly liquid investments,
                                                            generally is equivalent to the receivables that are
                                                            over 90 days.

including those held as restricted assets, with             Special assessment receivables that are not expected
original maturities of three months or less when            to be collected in the current year are reported as
purchased, and those included in the internal               deferred revenue in the governmental fund
investment pool.                                            statements.    Delinquent      special   assessments
                                                            receivable are expected to be recovered, ultimately
For accounting and investment purposes, the                 through liens or foreclosures.
County maintains a cash and investment pool that is
available for use by all funds except those whose
                                                            Due From/Due To
cash and investments must be segregated due to
legal or other restrictions. Investments within this
                                                            Activity between funds during the year is recorded
pool are treated as a demand deposit account by the
                                                            by transferring cash, however, after September 30




                                                       43
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


cash can no longer move between funds; therefore, a        and gutters, streets and sidewalks, drainage
“due from” and “due to” are used to record any             systems, lighting systems, and similar assets that are
activity representing current interfund loans. Any         immovable and of value only to the government
residual balances outstanding between the                  unit. Capital assets are reported in the government-
governmental activities and business-type activities       wide financial statements in the applicable
are reported in the government-wide statement of           governmental or business-type activities column, as
net assets as “internal balances”.                         well as the proprietary fund financial statements.
                                                           The threshold for capitalizing property, plant, and
Inventories and Prepaid items                              equipment is $1,000. The threshold for capitalizing
                                                           software and infrastructure is $100,000. Capital
Inventories, consisting primarily of materials and         assets are recorded at cost, or estimated historical
supplies, are stated at cost, which approximates fair      cost. Contributed assets are recorded at estimated
market value. The “first-in, first-out” method of          fair market value at the time received. Depreciation
accounting is used to determine cost. All inventories      is calculated using the straight-line method over the
are recorded as expenditures, or expenses, as they         estimated useful lives of the related assets. The
are used (consumption method).                             ranges of the useful lives are as follows:

Some payments to vendors represent costs                   Asset                                    Years
applicable to future accounting periods and are
recorded as prepaid items in government-wide and           Buildings                                    30-50
proprietary fund financial statements.                     Improvements other than buildings             6-50
                                                           Equipment                                     3-35
Advances To/From Other Funds                               Computer Equipment                            3-10
                                                           Furniture                                     4-20
County Administration Code AC-3-4 (the Code)               Vehicles & rolling stock                      3-10
allows loans between funds to be made for a period         Software                                       3-5
not to exceed beyond the current fiscal year or thirty     Infrastructure                               20-50
days, whichever is greater, that are approved by the
County Manager or his designee. Loans that will not        Florida Statutes require that the Board maintain
be repaid by the end of the current fiscal year must       accountability for all capital assets used in
be approved by the Board of County Commissioners           operations, except those separately accounted for by
to be carried into the next fiscal year and are            the Sheriff.
considered advances. Interest is calculated monthly
using the simple interest method which is a variable       Intangible Assets
rate based on the current rate used on Board funds
deposited at the State Board of Administration             On December 21, 1995, the Lee County Port
(SBA), although the Code does allow for interest free      Authority purchased the assets of Fort Myers Jet
loans. The Code does not specify repayment                 Center, Inc. for $1.6 million and has classified as
requirements. When it is determined that the               goodwill the excess of cost over the fair market
advance will not be repaid it is treated as a transfer.    value of assets acquired. The Port Authority is
Currently the County has outstanding advances              amortizing the goodwill over twenty years.
with payment terms ranging from 1-30 years.
                                                           Deferred and Unearned Revenues
Capital Assets
                                                           Deferred revenues do not meet the availability
Capital assets include property, buildings, furniture,     criteria. Unearned revenues represents revenues
equipment, vehicles, software, and infrastructure          collected in advance of services performed and will
assets. Infrastructure assets are defined as public        be recognized when the services are rendered. In
domain capital assets such as roads, bridges, curbs




                                                          44
                                      Lee County, Florida
                            NOTES TO THE FINANCIAL STATEMENTS
                                      September 30, 2009


governmental funds special        assessments   are         method by amortizing the gain or loss over the
deferred until collected.                                   shorter of the life of the old bond or the life of the
                                                            new bond, which is reported in the government-
Compensated Absences                                        wide and proprietary fund financial statements.

The County maintains a policy that permits                  Net Assets
employees to accumulate earned but unused                   In the government-wide and proprietary fund
vacation and sick pay benefits that will be paid to         financial statements certain net assets have been
employees upon separation from County service if            identified as restricted. These net assets have
certain criteria are met. These benefits, plus their        constraints as to their use externally imposed by
related tax and retirement costs are classified as          creditors, through debt covenants, by grantors, or by
compensated absences. The County’s policy permits           law. Restricted assets are being reported for: capital
employees to either bank unused sick pay benefits           projects; debt service; and renewal and replacement.
or receive a cash buyout on an annual basis which is
determined annually. Both the current and long-             Fund Equity
term portion of compensated absences are accrued
and reported in the government-wide and                     In the governmental fund financial statements a
proprietary fund financial statements. The exception        reservation of fund balance indicates amounts that
to this policy is the Lee County Port Authority,            are limited for a specific purpose, not appropriable,
which has a mandatory annual buyback of unused              or not available for expenditure. Reserved for
leave. This is accounted for pursuant to GASB               inventory represents materials and supplies held for
Statement Number 16, Accounting for Compensated             future use. Reserved for advances represents
Absences.                                                   advances made to other funds or other
                                                            governments. Reserved for debt service is used to
Unamortized Discounts,          Premiums,       and         segregate resources accumulated for debt service,
Issuance Costs                                              either current or future. Designations of fund
                                                            balance represent tentative management plans.
Discounts, premiums, and issuance costs related to          Unreserved, undesignated fund balance indicates
long-term debt are amortized over the life of the           funds that are available for current expenditure.
debt principally by the effective-interest method.
Notes payable and revenue bonds payable in the
government-wide and proprietary fund financial              NOTE II.   DIFFERENCE BETWEEN
statements are shown net of unamortized discounts           BUDGETED AND ACTUAL RESULTS
and premiums. Debt issuance costs are presented as
assets in the government-wide Statement of Net
Assets. Discounts, premiums, and issuance costs
related to general long-term debt in the
                                                            B  udgets are adopted on a basis consistent with
                                                               GAAP except as follows:

governmental fund financial statements are
                                                                    General Fund – Emergency Medical Services
recorded as expenditures or other financing sources
                                                                    (EMS) ambulance fees, changes in fair
when paid or received and therefore are not
                                                                    market value (FMV) of investments,
accounted for in subsequent periods.
                                                                    proceeds from sale of fixed assets, advances
                                                                    to other funds, prepaid expenses, inventory
Unamortized Gains or Losses                                         adjustments, and bad debts for EMS and
                                                                    other departments are not budgeted.
Gains or losses from debt refundings are reported in                Library – Changes in fair market value
the accompanying financial statements as an                         (FMV) of investments and prepaid expenses
addition or deduction to bonds payable and will be                  are not budgeted.
charged to operations using the effective-interest




                                                       45
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


        MSTU – Changes in fair market value                MSTU:
        (FMV) of investments, advances to other            Excess of revenues and other financing
        funds, and prepaid expenses are not                 sources over expenditures and other
        budgeted.                                           financing uses (GAAP basis)              ($4,577)
        Tourist Development Trust Fund- Adjustment         Basis Difference:
        to the allowance for bad debt, changes in          Miscellaneous revenue not budgeted-
        fair market value (FMV) of investments,                Change in FMV                            (104)
        advances from other funds, and prepaid             Advances not budgeted as transfers        (75,000)
        expenses are not budgeted.                         Expenditures associated with prepaids          45
                                                           Excess of revenues and other financing
The following adjustments were necessary to                 sources over expenditures and other financing
present these funds’ actual data on a budgetary             uses (Non-GAAP budgetary basis)         ($79,636)
basis (Non-GAAP) for the fiscal year ended
September 30, 2009 (dollars in thousands):                 Tourist Development Trust Fund:
                                                           Excess of revenues and other financing
General Fund:                                               sources over expenditures and other
Excess of revenues and other financing                      financing uses (GAAP basis)             ($71,540)
 sources over expenditures and other financing             Basis Difference:
 uses (GAAP basis)                          $3,162         Adjustment of allowance for bad debt          (10)
Basis Difference:                                          Miscellaneous revenue not budgeted-
EMS ambulance fees not reported on                             Change in FMV                             (12)
    a cash basis                            (8,298)        Advances not budgeted as transfers         75,000
Miscellaneous revenue not budgeted                         Expenditures associated with prepaids         183
    (FMV)                                     (306)        Excess of revenues and other financing
Proceeds from sale of fixed asset             (211)         sources over expenditures and other financing
Advances not budgeted as transfers           6,045          uses (Non-GAAP budgetary basis)          $3,621
Expenditures associated with prepaids          233
Expenditures associated with inventory          77
Bad debts for EMS and other departments,
                                                           NOTE III. PROPERTY TAXES
  not budgeted                               9,965
Excess of revenues and other financing
 sources over expenditures and other financing
 uses (Non-GAAP budgetary basis)         $10,667
                                                           P   roperty taxes become due and payable on
                                                               November 1 of each year and are delinquent on
                                                           April 1 of the following year. Discounts on property
                                                           taxes are allowed for payments made prior to the
Library:
                                                           April 1 delinquent date. Tax certificates for the full
Excess of revenues and other financing sources
                                                           amount of any unpaid taxes must be sold no later
 over expenditures and other financing uses
                                                           than June 1 of each year. No accrual for the property
 (GAAP basis)                            ($25,338)
                                                           tax levy becoming due in November 2009 is
Basis Difference:
                                                           included in the accompanying financial statements,
Miscellaneous revenue not budgeted-
                                                           since such taxes are collected to finance
    Change in FMV                             (92)
                                                           expenditures of the subsequent period.
Expenditures associated with prepaids          60
Excess of revenues and other financing
                                                           Procedures for collecting delinquent taxes, including
 sources over expenditures and other financing
                                                           applicable tax certificate sales and tax deed sales, are
 uses (Non-GAAP budgetary basis)         ($25,370)
                                                           provided by Florida Statutes. The enforceable lien
                                                           date is approximately two years after taxes become
                                                           delinquent and occurs only upon request of a holder
                                                           of a delinquent tax certificate. There were no




                                                      46
                                      Lee County, Florida
                            NOTES TO THE FINANCIAL STATEMENTS
                                      September 30, 2009


significant delinquent property tax receivables at          NOTE IV. STEWARDSHIP,
September 30, 2009.                                         COMPLIANCE, AND ACCOUNTABILITY
Important dates in the property tax cycle are as
follows:                                                    Compliance with Finance Related Legal
                                                            and Contractual Provisions
       Assessment roll certified- July 1
       Millage resolution approved- no later than
       95 days following receipt of the certified
       preliminary assessment roll
                                                            M     anagement believes there were no violations
                                                                  of finance related legal and contractual
                                                            provisions.
       Beginning of fiscal year for which taxes have
       been levied- October 1                               Deficit Fund Net Assets
       Taxes due and payable (levy date)-
       November 1
       Property taxes payable (maximum discount
       of 4 percent)- 30 days after levy date
                                                            A    t September 30, 2009, The Tourist Development
                                                                 Trust Fund had a deficit fund balance of
                                                            $64,154,000 due to a loan from the Municipal Service
       Due date- March 31                                   Taxing Unit (MSTU) fund for the Red Sox Stadium
       Taxes become delinquent (lien date)- April 1         project. Repayment of the interest bearing loan is
       Tax certificate sold- prior to June 1                anticipated by fiscal year 2039 with Tourist
                                                            Development Tax revenues or earlier with proceeds
                                                            from a bond issue if market conditions are favorable.

                                                            In addition, the Road Impact Fee Fund (non-major
                                                            governmental fund) had a deficit fund balance of
                                                            $5,833,000 due to a loan from the General Fund for
                                                            the Estero Parkway project. Repayment of the
                                                            interest bearing loan is anticipated to be paid back
                                                            by fiscal year 2017 with future impact fees.




                                                       47
                                                Lee County, Florida
                                      NOTES TO THE FINANCIAL STATEMENTS
                                                September 30, 2009

NOTE V. DETAIL NOTES ON ALL FUNDS
Cash, Equity in Pooled Cash and Investments, and Investments
                                                      Investment Portfolio

As of September 30, 2009, the County had the following deposits, investments, and maturities (amounts in thousands):

                                                                                Fair           Call           Call
                         Investment                          Maturities        Value           Date        Frequency       Rating

Cash on hand                                                    N/A               $403                                     N/A
Cash with Fiscal Agent                                          N/A              64,101                                    N/A
Demand Deposits                                                 N/A             156,481                                    N/A
SBA- Local Government Surplus Funds Trust Fund
   Investment Pool- Florida PRIME                              33 days          341,762                                   AAAm
SBA- Fund B Surplus Funds Trust Fund                          6.69 years          4,801                                   Unrated
Florida Local Government Investment Trust                     2.19 years          2,007                                    AAAf
Money Market Funds                                              N/A              26,380                                   AAAm
U.S. Treasury Bill                                            4/8/2010            8,122                                    N/A
U.S. Treasury Note                                           1/31/2010           20,130                                    N/A
U.S. Treasury Note                                           1/31/2010            1,792                                    N/A
U.S. Treasury Note                                           1/31/2010              362                                    N/A
U.S. Treasury Note                                           1/31/2010            4,986                                    N/A
U.S. Treasury Note                                           1/31/2010            4,986                                    N/A
U.S. Treasury Note                                           11/30/2010          40,353                                    N/A
U.S. Treasury Note                                           1/31/2011            8,438                                    N/A
U.S. Treasury Note                                           3/31/2011           20,067                                    N/A
Federal Farm Credit                                          11/20/2009          20,069                                    AAA
Federal Farm Credit                                          1/21/2010           20,169                                    AAA
Federal Farm Credit                                           7/1/2010           20,275                                    AAA
Federal Farm Credit                                          12/1/2010           20,006     12/1/2009      Continuous      AAA
Federal Farm Credit                                           1/7/2011           20,000     10/7/2009      Continuous      N/A
Federal Farm Credit                                          1/12/2011           20,219                                    N/A
Federal Farm Credit                                          3/23/2011           19,993    12/23/2009      Continuous      AAA
Federal Farm Credit                                          4/29/2011           20,013                    Continuous      AAA
Federal Farm Credit                                          7/20/2011           20,000    10/20/2009      Continuous      AAA
Federal Home Loan Bank                                       12/23/2009          10,075                                    AAA
Federal Home Loan Bank                                       2/17/2010           26,264                                    AAA
Federal Home Loan Bank                                       11/30/2010          20,075                                    AAA
Federal Home Loan Bank                                       1/21/2011            1,515                                    AAA
Federal Home Loan Bank                                       1/28/2011           20,012    10/28/2009       One-time       AAA
Federal Home Loan Bank                                       1/28/2011           20,012    10/28/2009       One-time       AAA
Federal Home Loan Bank                                       5/27/2011           20,000                    Continuous      AAA
Federal Home Loan Bank                                        6/9/2011           20,000                    Continuous      AAA
Federal Home Loan Bank                                       7/18/2011           20,063                                    AAA
                                                                                                                       (continued)




                                                                 48
                                                Lee County, Florida
                                      NOTES TO THE FINANCIAL STATEMENTS
                                                September 30, 2009

Cash, Equity in Pooled Cash and Investments, and Investments (continued)

                                                                                  Fair            Call           Call
                        Investment                             Maturities        Value            Date        Frequency      Rating

Federal Home Loan Bank Discount Note                           1/22/2010           19,994                                     AAA
Federal Home Loan Bank Discount Note                           1/22/2010           19,994                                     AAA
Federal Home Loan Bank Discount Note                           1/22/2010           19,994                                     AAA
Federal Home Loan Bank Discount Note                           1/29/2010            5,003                                     AAA
Federal Home Loan Bank Discount Note                            2/5/2010           10,086                                     AAA
Federal Home Loan Bank Discount Note                           2/16/2010           19,990                                     AAA
Federal Home Loan Bank Discount Note                            8/2/2010           10,027                                     AAA
Federal Home Loan Mortgage Corporation                         2/10/2011           20,091      2/10/2010       One-time       AAA
Federal Home Loan Mortgage Corporation                         8/17/2011           20,031     11/17/2009       Quarterly      AAA
Federal Home Loan Mortgage Corporation                          9/2/2011           20,077      3/2/2010        Quarterly      AAA
Federal Home Loan Mortgage Corporation                          9/2/2011           20,105      3/2/2010        Quarterly      AAA
Federal Home Loan Mortgage Corp. Discount Note                 10/8/2009           12,003                                     AAA
Federal Home Loan Mortgage Corp. Discount Note                 11/16/2009          19,998                                     AAA
Federal Home Loan Mortgage Corp. Discount Note                 4/19/2010           19,982                                     AAA
Federal National Mortgage Association                           7/6/2010           20,181                                     AAA
Federal National Mortgage Association                           3/2/2011           10,041      3/2/2010        One-time       AAA
Federal National Mortgage Association                           4/1/2011           20,150      4/1/2010        One-time       AAA
Federal National Mortgage Association                           4/8/2011           20,125      4/8/2010        One-time       AAA
Federal National Mortgage Association                          8/17/2011           20,031     11/17/2009       Quarterly      AAA
Federal National Mortgage Assoc. Discount Note                 11/30/2009          20,298                                     AAA
Federal National Mortgage Assoc. Discount Note                  5/3/2010            9,989                                     AAA
Federal National Mortgage Assoc. Discount Note                  6/1/2010            9,986                                     AAA
Federal National Mortgage Assoc. Discount Note                 7/16/2010           19,964                                     AAA
Federal National Mortgage Assoc. Discount Note                 7/16/2010            9,982                                     AAA
Federal National Mortgage Assoc. Discount Note                 7/16/2010           14,037                                     AAA
                           Total                                               $1,456,090




                                                         Pension Portfolio
As of September 30, 2009, the County had the following investments in their pension portfolio (amounts in thousands):

                                                                                  Fair            Call           Call
                        Investment                             Maturities        Value            Date        Frequency      Rating
Money Market Funds                                                N/A             $42,664                                    AAAm




SBA- Fund B Surplus Funds Trust Fund contains the securities that have problem with payment defaults, paid slower than
expected or have significant credit risk. Interest income is not paid and distributed to Fund B participants; however, periodic
liquidity has been made available. Fund B is accounted for as a fluctuating NAV pool, the fair value factor as of September 30, 2009
was .54915069.




                                                                49
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


Credit Risk                                                       H.) Bonds, notes or obligations of any state of
                                                                      the United States, any municipality, political
The Board’s Investment Policy (Policy) limits credit                  subdivision, agency or authority of this state
risk by restricting authorized investments for their                  which are exempt from federal income
investment portfolio to the following:                                taxation, and are rated by any nationally
                                                                      recognized rating agency for municipal
   A.) Direct obligations of, or obligations the                      bonds in any of the two highest
       principal and interest of which are                            classifications.
       unconditionally guaranteed by the United
       States Government.                                         I.) SEC - registered, no-load money market
                                                                      mutual funds whose portfolios consist of tax
   B.) U.S. Government sponsored enterprises.                         exempt      securities   and      repurchase
                                                                      agreements, whose shares of the mutual
   C.) U.S. Government Agencies.                                      fund must be rated in the highest category
                                                                      by a nationally recognized rating service.
   D.) The Florida Local Government Surplus
       Funds Trust Fund (SBA).                                    J.) Florida Local Government Investment Trust
                                                                      (FLGIT).
   E.) Interest-bearing time deposits or savings
       accounts in banks organized under the laws                 K.) SEC registered money market mutual funds
       of Florida, in national banks organized                        with average portfolio maturities under 120
       under the laws of the United States and                        days, whose portfolios consist of U.S.
       doing business and situated in Florida.                        Government securities and repurchase
       Savings and loan associations which are                        agreements secured by such securities.
       under federal law and supervision,
       provided deposits are secured by collateral            The Policy requires that collateral for overnight and
       as may be prescribed by law.            The            term repurchase agreements must maintain a
       institution must be fully insured by Federal           minimum price of 101 percent on U.S. Treasuries
       Deposit Insurance Corporation, or Federal              and 102 percent on Agencies and Instrumentalities
       Savings and Loan Insurance Corporation,                not to exceed five (5) years, and must be “marked to
       and are approved by the State Treasurer as a           market” on a weekly basis. The Policy also requires
       qualified public depository.                           that the obligations of any state or municipality be
                                                              rated by at least one of the nationally recognized
   F.) Securities of, or other interests in, any open-
                                                              rating agencies in any one of the two (2) highest
       end or closed-end management type
                                                              classifications, and that investments in money
       investment company or investment trust
                                                              market mutual funds must be rated in the highest
       registered under the Investment Company
                                                              category by a nationally recognized rating service.
       Act of 1940, provided their portfolio is
                                                              All credit ratings indicated in the above table are
       limited to United States Government
                                                              Standard & Poor’s (S&P) ratings.
       obligations and repurchase agreements fully
       collateralized by such United States
                                                              The Clerk does not have a formal written investment
       Government obligations.
                                                              policy and thereby is required to follow Section
   G.) Repurchase agreements with any primary                 218.415, Florida Statutes, when investing surplus
       brokers/dealers that are fully collateralized          funds. This statute limits investing of surplus funds
       by direct obligations of United States, or             to the Local Government Surplus Funds Trust Fund,
       U.S. government sponsored corporation/                 or any intergovernmental investment pool
       instrumentalities, or U.S. government                  authorized pursuant to the Florida Interlocal
       agencies.                                              Cooperation Act of 1969, Securities and Exchange
                                                              Commission registered money market funds with




                                                         50
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2009


the highest credit quality rating from a nationally           Local Government Surplus Funds, 20 percent to be
recognized rating agency, interest-bearing time               invested in repurchase agreements, 65 percent to be
deposits or savings accounts in qualified public              invested in money market mutual funds (no
depositories, or direct obligations of the U.S.               individual fund family can exceed 30 percent of the
Treasury. All other Constitutional Officers follow            overall portfolio), 30 percent to be invested in
the guidance in Section 219.075, Florida Statutes,            Certificate of Deposits, and 5 percent to be invested
regarding the deposit of funds and the investment of          in FLGIT. No more than 25 percent of the total
surplus funds, in addition to Section 218.415, Florida        portfolio can be invested with one Investment
Statutes.                                                     Company.

There is no formal written policy for the pension             The portion of the County’s portfolio invested in
portfolio. The County adopted an ordinance                    Federal instrumentalities is detailed as follows, at
allowing the pension assets to be invested in the             September 30, 2009:
same investments allowed by the Florida Retirement                                                    Percent of
System as described in Chapter 215, Florida Statutes.                          Issuer                 Portfolio

                                                              Federal Home Loan Bank                     21.30%
Custodial Credit Risk
                                                              Federal Farm Credit Bank                   14.63%
                                                              Federal National Mortgage Association      14.15%
The Policy requires that bank deposits be secured as
                                                              Federal Home Loan Mortgage Corp.           10.71%
provided by Chapter 280, Florida Statutes, and that           Total Federal Instrumentalities            60.79%
the banks must be fully insured by the Federal
Deposit Insurance Corporation (FDIC) or the                   Reconciliation of cash, equity in pooled cash and
Federal Savings and Loan Insurance Corporation                investments, and investments from the schedule of
(FSLIC) and approved by the State Treasurer as a              deposits and investments to the basic financial
public depository. At September 30, 2009, all of the          statements (dollars in thousands):
County’s bank deposits, including the Constitutional
Officers’, were in qualified public depositories.             Primary government

The Policy requires execution of a third-party                Current:
custodial safekeeping agreement for all purchased                Cash and equity in pooled cash
securities and collateral, and requires that they be               and investments                    $1,067,298
held in the County’s name.                                       Cash and cash equivalents
                                                                    with fiscal agent                     66,987
Interest Rate Risk                                               Investments                              20,713
                                                                 Investments with fiscal agent            51,279
The Policy requires an average minimum dollar                    Restricted:
                                                                    Cash and equity in pooled cash
amount equivalent to eight weeks of expenditures
                                                                      and investments                     40,009
shall be held in a liquid investment, and securities                Cash and cash equivalents
will not be directly invested in or accepted as                       with fiscal agent                   38,381
collateral that have a maturity date greater than five         Non-current:
(5) years from the settlement date.                               Restricted:
                                                                    Cash and equity in pooled cash
Concentration of Credit Risk                                           and investments                    60,896
                                                                    Cash and cash equivalents
The Policy establishes limitations on portfolio                        with fiscal agent                  11,041
composition in order to control concentration of                     Investments                          44,338
                                                              Agency Funds
credit risk. The Policy allows 100 percent of the
                                                                Cash and equity in pooled cash
portfolio to be invested in United States
                                                                  and investments                         55,148
Treasuries/Agencies, 40 percent to be invested in             Total                                   $1,456,090




                                                         51
                                                                Lee County, Florida
                                            NOTES TO THE FINANCIAL STATEMENTS
                                                                  September 30, 2009



Receivables

At September 30, 2009, receivables for the County's major funds and all other funds in aggregate were as follows (dollars in thousands):
                                                        Lee                           Tourist                       Non-major            Total
                                      General         County                        Development       Capital      Governmental       Governmental
                                       Fund           Library          MSTU          Trust Fund     Improvement       Funds              Funds
 Accounts                               $44,637                            $92                $9                           $573             $45,311
 Special assessments                                                                                                      6,516                6,516
 Accrued interest                            511           $125              60               42            $393          1,236                2,367
 Less: allowance for bad debt            (40,449)                                                                           (43)            (40,492)
Total net receivables                     $4,699           $125            $152              $51            $393         $8,282             $13,702


    Total net receivables reported in governmental funds:                                                                                     $13,702
     Internal service fund total receivables                                                                                                      803
    Receivables reported on the Statement of Net Assets for Governmental Activities:                                                          $14,505


                                                                                                     Non-Major         Total             Internal
                                       Port         Water and      Transportation      Solid         Enterprise      Enterprise          Service
                                     Authority      Wastewater        Facilities       Waste           Funds           Funds              Funds
 Accounts                                $4,496          $9,388               $95         $5,428             $19         $19,426                $630
 Grants                                   3,069                                                            1,228           4,297
 Notes                                                                                        80                               80
 Special assessments                                                                       1,880                           1,880
 Accrued interest                                           152              43               52              25              272                 173
 Less: allowance for bad debt               (250)          (402)            (44)             (42)                            (738)
Total net receivables                     $7,315         $9,138             $94           $7,398          $1,272         $25,217                $803

In 1992, the County made a fifteen year $1,200,000 non-interest bearing intergovernmental loan to Hendry County for costs pertaining to the closure of
the "Pioneer Plantation" Class I Landfill Site in Hendry County. Per the agreement, loan repayment began in 1996. The loan is carried in the Solid Waste
Fund and the outstanding amount of the loan at September 30, 2009, was $80,000. The loan was made to Hendry County for permitting an ash landfill
site to be built in their county.




                                                                            52
                                                 Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                                  September 30, 2009


Restricted Assets
Restricted assets of the proprietary funds represent monies to be restricted for debt service, renewal and
replacement, capital improvements and construction, and customer deposits under the terms of outstanding
bond agreements, resolutions, and other contractual agreements.

Restricted assets reported on the proprietary fund statement of net assets at September 30, 2009, were as
follows (dollars in thousands):

                                       Port          Water and     Transportation    Solid         Enterprise
                                     Authority       Wastewater       Facilities     Waste           Total


 Cash and equity in pooled
   cash and investments                 $34,758          $45,405         $4,632         $6,110          $90,905
 Cash and cash equivalents
   with fiscal agent                     19,441           10,227         11,177         18,577           59,422
 Investments                             26,264                                         18,074           44,338
 Receivables (net):
   Accounts                               1,984               10             53                           2,047
   Special assessments                                       618                                            618
   Accrued interest                        168                75              3              17             263
 Other                                                       721             19                             740
   Total                                $82,615          $57,056        $15,884        $42,778         $198,333



Assets restricted for debt service are for the payment of bond principal and interest and bond reserve
requirements. Assets restricted for renewal and replacement are for the payment of unusual or extra-ordinary
maintenance or repairs. Additionally, assets are restricted for capital improvements and construction.
Customer deposits are advance payments held until certain conditions are met.
The assets were restricted for the following purposes at September 30, 2009, (dollars in thousands):

                                       Port          Water and     Transportation    Solid         Enterprise
                                     Authority       Wastewater       Facilities     Waste           Total


 Debt service:
   Revenue bonds                        $46,318          $10,377        $11,195        $35,147         $103,037
   Other                                                   2,173             20                           2,193
 Renewal and replacement                   500             8,562          1,930          1,521           12,513
 Capital improvements and
   construction                          35,797           30,563             777                         67,137
 Deposits                                                  5,381           1,962                          7,343
 Landfill closure and
   postclosure costs                                                                     6,110            6,110
   Total net restricted assets          $82,615          $57,056        $15,884        $42,778         $198,333




                                                         53
                                                     Lee County, Florida
                                      NOTES TO THE FINANCIAL STATEMENTS
                                                      September 30, 2009


Capital Assets
Capital asset activity for the fiscal year ended September 30, 2009, was as follows (dollars in thousands):


                                                            Beginning                                            Ending
Governmental Activities:                                     Balance           Increases         Decreases       Balance


 Capital assets not being depreciated:
   Artwork                                                           $304                                             $304
   Land                                                         492,940           $62,562             ($1,823)     553,679
   Construction in progress                                     452,521           173,237            (306,700)     319,058
   Software in progress                                              3,050           1,044             (1,178)        2,916
   Total capital assets not being depreciated                   948,815           236,843            (309,701)     875,957


 Capital assets being depreciated:
   Buildings                                                    256,874             72,231                (31)     329,074
   Improvements other than buildings                             60,982             65,494                (60)     126,416
   Machinery and equipment                                      218,861             15,270            (19,509)     214,622
   Software                                                      11,272                                  (284)      10,988
   Infrastructure                                               480,286             97,782                         578,068
   Total capital assets being depreciated                      1,028,275          250,777             (19,884)    1,259,168


 Less accumulated depreciation for:
   Buildings                                                     90,694              6,871                (31)      97,534
   Improvements other than buildings                             22,341              5,551                (48)      27,844
   Machinery and equipment                                      139,710             20,954            (16,640)     144,024
   Software                                                          6,872           1,490               (284)        8,078
   Infrastructure                                               147,573             12,969                         160,542
   Total accumulated depreciation                               407,190             47,835            (17,003)     438,022
   Total capital assets being depreciated, net                  621,085           202,942              (2,881)     821,146
 Total governmental activities capital assets, net            $1,569,900         $439,785           ($312,582)   $1,697,103



Business-Type Activities:

 Capital assets not being depreciated:


   Land
      Port Authority                                           $139,368              $440                         $139,808
      Water and Wastewater                                       27,381                                  ($40)      27,341
      Transportation Facilities                                  44,477                                             44,477
      Solid Waste                                                20,116              1,131                          21,247
      Other non-major - Transit                                        65                                                  65
        Total land                                              231,407              1,571                (40)     232,938




                                                                54
                                                  Lee County, Florida
                                     NOTES TO THE FINANCIAL STATEMENTS
                                                   September 30, 2009


Capital Assets (continued)
                                                         Beginning                                    Ending
Business-Type Activities (continued):                     Balance        Increases     Decreases      Balance


   Construction in progress
      Port Authority                                            11,858       15,779         (8,465)      19,172
      Water and Wastewater                                     109,843       36,915        (29,484)     117,274
      Transportation Facilities                                  6,925         1,772        (2,737)       5,960
      Solid Waste                                               10,663         6,303        (5,786)      11,180
      Other non-major - Transit                                   683            38                         721

        Total construction in progress                         139,972       60,807        (46,472)     154,307

   Software in progress
      Port Authority                                              136            52           (188)              0
      Other non-major - Transit                                   139                                       139

        Total software in progress                                275            52           (188)         139

   Total capital assets not being depreciated                  371,654       62,430        (46,700)     387,384


 Capital assets being depreciated:

   Buildings
      Port Authority                                           328,797                         (10)     328,787
      Water and Wastewater                                      31,187         1,771                     32,958
      Transportation Facilities                                  4,850                                    4,850
      Solid Waste                                              106,035                                  106,035
      Other non-major - Transit                                  5,275                                    5,275

        Total buildings                                        476,144         1,771           (10)     477,905

   Improvements other than buildings
      Port Authority                                            17,948                                   17,948
      Water and Wastewater                                     315,947       18,412            (59)     334,300
      Transportation Facilities                                  1,871         2,801                      4,672
      Solid Waste                                               21,202                                   21,202
      Other non-major - Transit                                    63                                           63

        Total improvements other than buildings                357,031       21,213            (59)     378,185

   Machinery and equipment
      Port Authority                                            44,472         1,085          (145)      45,412
      Water and Wastewater                                      62,378       11,224           (888)      72,714
      Transportation Facilities                                  5,047          194           (188)       5,053
      Solid Waste                                              201,413         5,529           (48)     206,894
      Other non-major - Transit                                 18,348         3,248          (601)      20,995

        Total machinery and equipment                          331,658       21,280         (1,870)     351,068




                                                          55
                                                  Lee County, Florida
                                      NOTES TO THE FINANCIAL STATEMENTS
                                                   September 30, 2009
Capital Assets (continued)
                                                         Beginning                                    Ending
Business-Type Activities (continued):                     Balance       Increases     Decreases       Balance

   Software
     Port Authority                                            2,670           208                        2,878

        Total software                                         2,670           208                0       2,878

   Infrastructure
     Port Authority                                          280,821          7,539                     288,360
     Water and Wastewater                                    279,459        10,500           (492)      289,467
     Transportation Facilities                               276,980            24           (142)      276,862
     Solid Waste                                              21,566                                     21,566

        Total infrastructure                                 858,826        18,063           (634)      876,255

   Total capital assets being depreciated                  2,026,329        62,535         (2,573)    2,086,291

 Less accumulated depreciation for:

   Buildings
     Port Authority                                           29,735          6,806                      36,541
     Water and Wastewater                                     10,006           693                       10,699
     Transportation Facilities                                 3,669           195                        3,864
     Solid Waste                                              39,469          3,360                      42,829
     Other non-major - Transit                                 1,599           116                        1,715

        Total buildings                                       84,478        11,170                0      95,648

   Improvements other than buildings
     Port Authority                                            5,360          1,093                       6,453
     Water and Wastewater                                     85,587        15,616            (31)      101,172
     Transportation Facilities                                 1,646            89                        1,735
     Solid Waste                                               4,616           971                        5,587
     Other non-major - Transit                                    60                                            60

        Total improvements other than buildings               97,269        17,769            (31)      115,007

   Machinery and equipment
     Port Authority                                           16,112          2,955          (130)       18,937
     Water and Wastewater                                     26,331          4,118          (504)       29,945
     Transportation Facilities                                 3,657           490           (175)        3,972
     Solid Waste                                              47,042          7,666           (48)       54,660
     Other non-major - Transit                                14,844          1,764          (597)       16,011

        Total machinery and equipment                        107,986        16,993         (1,454)      123,525
   Software
     Port Authority                                            1,569           545                        2,114

        Total software                                         1,569           545                0       2,114




                                                             56
                                                       Lee County, Florida
                                       NOTES TO THE FINANCIAL STATEMENTS
                                                        September 30, 2009
Capital Assets (continued)
                                                                Beginning                                                   Ending
Business-Type Activities (continued):                            Balance              Increases           Decreases         Balance

   Infrastructure
      Port Authority                                                   74,352               7,937                               82,289
      Water and Wastewater                                            109,480               9,244                    (50)      118,674
      Transportation Facilities                                        49,148               7,309                               56,457
      Solid Waste                                                       1,705                 655                                2,360
         Total infrastructure                                         234,685              25,145                    (50)      259,780
   Total accumulated depreciation                                     525,987              71,622                 (1,535)      596,074
   Total capital assets being depreciated, net                     1,500,342               (9,087)                (1,038)    1,490,217
 Total business-type activities capital assets, net               $1,871,996              $53,343             ($47,738)     $1,877,601



Interest costs related to construction are capitalized. In addition, earnings from the investment of tax-exempt bond
proceeds earmarked for construction are also capitalized. Net interest expense capitalized for the year ended September
30, 2009, was $130,000.

Depreciation and amortization expense was charged to functions as follows (dollars in thousands):
Governmental activities:                                                        Business-type activities:
 General government                        $16,333                                 Port Authority                              $19,339
 Public safety                               8,872                                 Water and Wastewater                         29,667
 Physical environment                          676                                 Transportation Facilities                     8,083
 Transportation                             13,304                                 Solid Waste                                  12,620
 Economic environment                          206                                 Other non-major Transit                       1,881
 Human services                                434                                    Total depreciation for
 Culture and recreation                      7,350                                     business-type activities                $71,590
   Total depreciation for
   governmental activities                 $47,175

The total depreciation/amortization expense by function does not agree with the related disclosed accumulated
depreciation because of asset transfers to/from Governmental Activities to/from Business-Type Activities and
amortization not reported above. The related accumulated depreciation for the asset transfer is reported in the Increase
and/or Decrease columns on the Schedule of Capital Assets by Activity ; therefore, the increase in accumulated depreciation
is different from the current year’s depreciation.


Construction Commitments
The County has active construction projects as of September 30, 2009. The significant commitments for remaining
contracts were as follows (dollars in thousands):
                                                                 Contract             Amount             Remaining
   Project                                                       Amount             Spent-to-date       Commitment          Retainage

   Port Authority                                                   $32,219               $24,737               $7,482            $240
   Water and Wastewater                                              65,042                47,975               17,067           2,415
   Transportation                                                   115,043                60,682               54,361           4,452
   Solid Waste                                                       13,784                 3,087               10,697             103
   Library                                                            8,061                 6,889                1,172             514
   Parks and Recreation                                              14,833                 3,286               11,547             163
   Other                                                             44,760                35,838                8,922           1,625
        Total                                                      $293,742              $182,494             $111,248          $9,512


                                                                 57
                                                                                        Lee County, Florida
                                                                    NOTES TO THE FINANCIAL STATEMENTS
                                                                                         September 30, 2009

Interfund Transactions
                                                                                     Due To/From Other Funds
Interfund balances for the year ended September 30, 2009, consisted of the following (dollars in thousands):
Receivable Fund/Payable Fund:                                                              Amount          Receivable Fund/Payable Fund:                                                  Amount
Due to: General Fund                                                                                       Due to: Water and Wastewater
   Library                                      Interfund billing for services                   $11         General Fund                              Interfund billing for services         $6
   MSTU                                         Interfund billing for services                    86       Due to: Transportation Facilities
   Tourist Development Trust Fund               Interfund billing for services                    35         Non-major governmental funds              Operations                             13
   Capital Improvements                         Interfund billing for services                    51       Due to: Solid Waste
   Non-major governmental funds                 Interfund billing for services and                           General Fund                              Excess fees and Ad Valorem Taxes      235
                                                return of excess fees                            740         MSTU                                      Interfund billing for services         21
   Port Authority                               Interfund billing for services                     8         Non-major governmental funds              Interfund billing for services          8
   Water and Wastewater                         Interfund billing for services                    53         Water and Wastewater                      Interfund billing for services         47
   Transportation Facilities                    Interfund billing for services                     4         Internal service funds                    Operations                              1
   Solid Waste                                  Interfund billing for services                     1       Due to: Transit
   Transit                                      Interfund billing for services                      8        General Fund                              Interfund billing for services         41
   Internal service funds                       Interfund billing for services                     32        Non-major governmental funds              Operations                             50
                 Total due to General Fund                                                      1,029                       Total due to Enterprise funds                                    422
Due to: Lee County Library                                                                                 Due to: Internal service funds
   General Fund                                 Excess fees and Ad Valorem Taxes                 245          General Fund                             Interfund billing for services        637
   Non-major governmental funds                 Operations                                       114          Library                                  Interfund billing for services         50
               Total due to Library                                                              359          MSTU                                     Interfund billing for services        110
Due to: MSTU                                                                                                  Tourist Development Trust Fund           Interfund billing for services           7
   General Fund                                 Excess fees and Ad Valorem Taxes                 804          Capital Improvements                     Interfund billing for services           6
   Non-major governmental funds                 Interfund billing for services                    36          Non-major governmental funds             Interfund billing for services        330
   Internal service funds                       Interfund billing for services                    14          Water and Wastewater                     Interfund billing for services        137
                  Total due to MSTU                                                              854          Transportation Facilities                Interfund billing for services         20
Due to: Tourist Development Trust Fund                                                                        Solid Waste                              Interfund billing for services         10
   Non-major governmental funds                 Operations                                          8         Transit                                  Interfund billing for services         10
                  Total due to Tourist Development Trust Fund                                       8         Internal service funds                   Interfund billing for services          29
Due to: Capital Improvements                                                                                               Total due to Internal service funds                              1,346
   General Fund                                Excess fees and Ad Valorem Taxes                  487          Total                                                                        $8,988
                 Total due to Capital Improvements                                               487
Due to: Non-major governmental funds
   General Fund                                 Excess fees and Ad Valorem Taxes                 413
   Library                                      Operations                                         6
   MSTU                                         Interfund billing for services                    17
   Capital Improvements                       Interfund billing for services                        8
   Non-major governmental funds               Operations                                        1,096
   Transportation Facilities                  Operations                                        2,942
   Internal service funds                     Interfund billing for services                        1
                 Total due to Non-major governmental funds                                     $4,483


                                                                       Advances To/Advances From Other Funds

Interfund advances for the year ended September 30, 2009, consisted of the following (dollars in thousands):
Receivable Fund/Payable Fund:                                                              Amount
Advances from General Fund                                                                                    Loan to purchase Fisherman's Cooperative                                      $300
   Capital Improvements                         Interfund land acquisition loan                 $300          Loan to finish County Road 951                                               14,500
   Non-major governmental funds                 Interfund construction and land                               Loan to Port Authority for utility line construction                            193
                                                   acquisition loans                           17,750         Loan for Three Oaks Road Project and Boca Grande drainage                     3,250
                                                Temporary operations                                8         Loans for temporary lighting district operations                                  8
   Port Authority                               Interfund construction loan                      193          Loan for Boston Red Sox Stadium construction                                 75,000
                 Total advances from General Fund                                              18,251         Loan to San Carlos benefit unit district for construction                       88
Advances from MSTU                                                                                            Loan to Transportation Facilities to repay the commercial paper
   Tourist Development Trust Fund               construction loan                              75,000            loan taken out to construct the Sanibel Bridge                             5,821
                 Total advances from MSTU                                                      75,000                                                                                     $99,160
Advances from Special Assessment Districts
   Municipal Service Benefit Unit Districts     Interfund construction loans                       88
                 Total advances from Special Assessment Districts                                  88
Advances from Transportation Capital Improvements
   Transportation Facilities loan                                                               5,821
                 Total advances from Transportation Capital Improvements                        5,821
   Total                                                                                     $99,160

Advances to other local governments have been made for $817,000 from the General Fund to the Southwest Florida Expressway Authority for various startup costs.
Due to the long term nature of the advance to the Expressway Authority it has been offset with an estimated uncollectible account.




                                                                                                    58
                                                                Lee County, Florida
                                               NOTES TO THE FINANCIAL STATEMENTS
                                                                 September 30, 2009

Interfund Transactions (continued)
Interfund Transfers

Interfund transfers for the year ended September 30, 2009, consisted of the following (dollars in thousands):

                                                                                     Transfers In
                                                                  Tourist                    Non-major                     Other      Internal
                                 General                        Development      Capital        Gov't          Solid     Non-Major    Service
                                  Fund       Library   MSTU      Trust Fund      Improve        Funds          Waste      Transit     Funds       Total
Transfers out:
General Fund                                    $220     $473                        $425            $35,281      $195      $12,491     $1,913     $50,998
Library                                                                                               19,198                                        19,198
MSTU                                $3,019                                            800             22,398                                        26,217
Tourist Development Trust Fund                                                     80,846              4,059                                        84,905
Capital Improvements                  890                              $1,426                                                                        2,316
Non-major governmental               9,021                              3,885       1,800            108,917       175          630                124,428
Water & Wastewater                                                                                                                           19           19
Transportation Facilities                                                                              5,300                                         5,300
                                   $12,930      $220     $473          $5,311     $83,871           $195,153      $370      $13,121     $1,932    $313,381




The majority of interfund transfers were for recurring annual transfers. Two significant non-recurring transfers were made this year. One
transfer was from Non-major governmental funds to reimburse the General Fund for $4,500,000 in debt service for the Justice Center project.
The other transfer was from the Tourist Development Trust Fund to the Capital Improvements fund for $75,000,000 to construct a new baseball
stadium for the Boston Red Sox.




                                                                            59
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


Long-Term Obligations                                    Capital Leases

Leases
                                                         T   he County currently has no capital lease
                                                             obligations.
Operating Leases
                                                         Revenue Bonds

T  he County is currently committed to various
   operating leases with terms in excess of one
year. The future minimum rental payments as of           T   he County issued revenue bonds for both
                                                             governmental and business-type activities. The
September 30, 2009, were as follows (dollars in          descriptions and balances of the outstanding
thousands):                                              revenue bonds as of September 30, 2009, were as
                                                         follows:
Fiscal Year(s)                Amount
                                                                       Governmental Activities
    2010                       $2,532
    2011                        1,946                        Series 1993B Capital Refunding Revenue Bonds
    2012                        1,381                        for $36,238,000 at interest rates ranging from
    2013                          916                        2.45 percent to 5.25 percent on current interest
   2014                           606                        paying bonds and 5.85 percent to 5.9 percent on
 2015-2019                        195                        capital appreciation bonds (effective interest rate
    Total                     $ 7,576                        of 5.66 percent), collateralized by a lien on and a
                                                             pledge of non-ad valorem funds including
For all operating leases, rental expense is recorded         ambulance service receipts, building permits,
with separate amounts for minimum rentals,                   zoning fees, data processing fees, excess County
contingent rentals, and sublease rentals.                    Officer fees, franchise fees, guaranteed
                                                             entitlement funds, investment earnings, license
The following schedule shows the total rental                fees, pledged gas taxes, and sales tax. Interest
expense for all operating leases, including those            on the capital appreciation bonds is
with terms of less than one year, for the year ended         compounded semi-annually and is payable at
September 30, 2009 (dollars in thousands):                   maturity or early redemption. Accreted interest
                                                             at September 30, 2009, was $9,312,000. The
    Minimum rentals              $3,238                      outstanding balance, not including accreted
    Contingent rentals              366                      interest, was $5,938,000.
    Sublease rentals                 17
       Total rent expense        $3,621                      Series 1997A Capital Refunding Revenue Bonds
                                                             for $18,950,000 at interest rates ranging from
An operating lease has a contingent rental when the          4.875 percent to 5.75 percent (effective interest
amount of the rental payment may change based on             rate of 5.14 percent), collateralized by a lien on
the occurrence of certain events. For example, rental        and a pledge of non-ad valorem funds including
payments may increase due to additional usage or a           ambulance service receipts, building permits,
change in the Consumer Price Index (CPI) rate or             zoning fees, data processing fees, excess County
other economic indicators. Most operating leases             Officer fees, franchise fees, guaranteed
have the option to renew for either a one or two year        entitlement funds, investment earnings, license
term. In most cases, the County expects to renew or          fees, pledged gas taxes, and sales tax. The
replace all operating leases.                                outstanding balance was $9,945,000.




                                                        60
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009


Series 1997 Local Option Gas Tax Refunding                  Series 2004 Tourist Development Tax Refunding
Revenue Bonds for $14,995,000 at interest rates             Revenue Bonds for $8,195,000 at interest rates
ranging from 3.75 percent to 5 percent (effective           ranging from 2 percent to 5.25 percent (effective
interest rate of 4.74 percent), collateralized by a         interest rate of 5.22 percent), collateralized by a
lien on and a pledge of local option gas tax                lien on and a pledge of the tourist development
revenues and the proceeds of collection of                  tax, gross revenues of the baseball stadium, and
certain special assessments which may be levied             investment earnings. The outstanding balance
by the County on benefited properties. The                  was $5,440,000.
outstanding balance was $3,190,000.
                                                            Series 2004 Capital Revenue Bonds for
Series 1999A Capital Refunding Revenue Bonds                $55,530,000 at interest rates ranging from 4
for $36,190,000 at interest rates ranging from 4.4          percent to 4.99 percent (effective interest rate of
percent to 5.25 percent (effective interest rate of         4.99 percent) collateralized by a lien on and a
4.92 percent), collateralized by a lien on and a            pledge of non-ad valorem funds including
pledge of non-ad valorem funds including                    ambulance service receipts, building permits,
ambulance service receipts, building permits,               zoning fees, data processing fees, excess County
zoning fees, data processing fees, excess County            Officer fees, franchise fees, guaranteed
Officer fees, franchise fees, guaranteed                    entitlement funds, investment earnings, license
entitlement funds, investment earnings, license             fees, pledged gas taxes, and sales tax. The
fees, pledged gas taxes, and sales tax. The                 outstanding balance was $55,530,000.
outstanding balance was $14,475,000.
                                                            Series 2006 Capital Revenue Bonds for
Series 2000 Capital Revenue Bonds for                       $63,605,000 at interest rates ranging from 4
$18,200,000 at interest rates ranging from 4.3              percent to 5 percent (effective interest rate of
percent to 5.375 percent (effective interest rate of        4.40 percent) collateralized by a lien on and a
5.12 percent), collateralized by a lien on and a            pledge of non-ad valorem funds including
pledge of non-ad valorem funds including                    ambulance service receipts, building permits,
ambulance service receipts, building permits,               zoning fees, data processing fees, excess County
zoning fees, data processing fees, excess County            Officer fees, franchise fees, guaranteed
Officer fees, franchise fees, guaranteed                    entitlement funds, investment earnings, license
entitlement funds, investment earnings, license             fees, pledged gas taxes, and sales tax. The
fees, pledged gas taxes, and sales tax. The                 outstanding balance was $63,605,000.
outstanding balance was $9,970,000.
                                                            Series 2004 Five Cent Local Option Gas Tax
Series 2003 Capital and Transportation Facilities           Refunding Revenue Bonds for $26,920,000 at
Refunding Revenue Bonds for $40,815,000 at                  interest rates ranging from 2.25 percent to 5
interest rates ranging from 2 percent to 5 percent          percent (effective interest rate of 4.69 percent),
(effective interest rate of 4.88 percent),                  collateralized by a lien on and pledge of the
collateralized by a lien on and a pledge of non-            local option gas tax revenues. The outstanding
ad valorem funds including ambulance service                balance was $22,240,000.
receipts, building permits, zoning fees, data
processing fees, excess County Officer fees,                Series 1993 Certificates of Participation for
franchise fees, guaranteed entitlement funds,               $17,245,000 at interest rates ranging from 2.7
investment earnings, license fees, pledged gas              percent to 5.125 percent (effective interest rate of
taxes, and sales tax. The outstanding balance               5.09 percent), with certificate payments payable
was $38,205,000.                                            from non-ad valorem revenues of the County
                                                            and ad valorem tax revenues of the County,




                                                       61
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009


which are legally available to make lease                   ranging from 2 percent to 5 percent (effective
payments under the Master Lease-Purchase                    interest rate of 6.12 percent), collateralized by a
Agreement. The outstanding balance was                      lien on and a pledge of the net revenues of the
$5,020,000.                                                 Lee County Water and Wastewater System. The
                                                            outstanding balance was $53,515,000.
          Business-Type Activities
                                                            Series 2003B Water and Sewer Revenue Bonds
Series 1998 Passenger Facility Charge Revenue               for $8,285,000 at an interest rate of 5 percent
and Refunding Bonds for $52,225,000 at interest             (effective interest rate of 4.74 percent),
rates ranging from 3.6 percent to 5 percent                 collateralized by a lien on and a pledge of the
(effective interest rate of 5.21 percent),                  net revenues of the Lee County Water and
collateralized by a lien on and a pledge of the             Wastewater System. The outstanding balance
passenger facility charge revenues. The                     was $8,285,000.
outstanding balance was $31,395,000.
                                                            Series 2001A Transportation Facilities Refunding
Series 2000A (AMT) Airport Revenue Bonds, for               Revenue Bonds for $64,005,000 at interest rates
$291,155,000 at interest rates ranging from 5.4             ranging from 3 percent to 5.5 percent (effective
percent to 6.125 percent (effective interest rate of        interest rate of 6.274 percent), collateralized by a
6.16 percent), collateralized by a lien on and a            lien on and pledge of the net revenues of the
pledge of the net revenues of Southwest Florida             Sanibel Bridge, Cape Coral Bridge, and
International Airport (SWFIA). The outstanding              Midpoint Memorial Bridge Facilities. The
balance was $291,155,000.                                   outstanding balance was $43,035,000.

Series 2002 Airport Revenue Refunding Bonds                 Series 2004B Transportation Facilities Refunding
for $37,065,000 at interest rates ranging from 2.0          Revenue Bonds for $58,375,000 at interest rates
percent to 5.0 percent (effective interest rate of          ranging from 2 percent to 5 percent (effective
5.59 percent), collateralized by a lien on and a            interest rate of 5.97 percent) collateralized by a
pledge of the net revenues of SWFIA. The                    lien on and pledge of the net revenues of the
outstanding balance was $12,895,000.                        Sanibel Bridge, Cape Coral Bridge, and
                                                            Midpoint Memorial Bridge Facilities. The
Series 2005 Airport Revenue Refunding Bonds,                outstanding balance was $49,670,000.
for $37,805,000 at interest rates ranging from 3.5
percent to 5 percent (effective interest rate of            Series 2005A Transportation Facilities Refunding
5.642 percent), collateralized by a lien on and a           Revenue Bonds for $30,285,000 at interest rates
pledge of net revenues of the SWFIA. The                    ranging from 2 percent to 5 percent (effective
outstanding balance was $37,700,000.                        interest rate of 5.54 percent) collateralized by a
                                                            lien on and pledge of the net revenues of the
Series 1999A Water and Sewer Revenue Bonds                  Sanibel Bridge, Cape Coral Bridge, and
for $134,615,000 at interest rates ranging from             Midpoint Memorial Bridge Facilities. The
3.15 percent to 5 percent (effective interest rate          outstanding balance was $30,030,000.
of 5.03 percent), collateralized by a lien on and a
pledge of the net revenues of the Lee County                Series 2005B Transportation Facilities Revenue
Water and Wastewater System. The outstanding                Bonds for $63,865,000 at interest rates ranging
balance was $110,605,000.                                   from 3 percent to 5 percent (effective interest
                                                            rate of 4.36 percent) collateralized by a lien on
Series 2003A Water and Sewer Refunding                      and pledge of the net revenues of the Sanibel
Revenue Bonds for $57,240,000 at interest rates             Bridge, Cape Coral Bridge, and Midpoint




                                                       62
                                          Lee County, Florida
                                NOTES TO THE FINANCIAL STATEMENTS
                                          September 30, 2009


    Memorial Bridge Facilities. The outstanding                           lien on and a pledge of net revenues of the Lee
    balance was $62,655,000.                                              County Solid Waste System. The outstanding
                                                                          balance was $83,335,000.
    Series 2001 Solid Waste System Refunding
    Revenue Bonds for $140,925,000 at interest rates                      Series 2006B Solid Waste System Refunding
    ranging from 2.625 percent to 5.625 percent                           Revenue Bonds, for $21,710,000 at interest rates
    (effective interest rate of 5.81 percent),                            ranging from 4 percent to 5 percent (effective
    collateralized by a lien on and a pledge of net                       interest rate of 5.588 percent), collateralized by a
    revenues of the Lee County Solid Waste System.                        lien on and a pledge of net revenues of the Lee
    The outstanding balance was $61,025,000.                              County Solid Waste System. The outstanding
                                                                          balance was $21,395,000.
    Series 2006A Solid Waste System Revenue
    Bonds, for $83,335,000 at interest rates ranging
    from 4.3 percent to 5.125 percent (effective
    interest rate of 4.955 percent), collateralized by a


The annual debt service requirements for revenue bonds at September 30, 2009, were as follows (dollars in
thousands):

                       Governmental                    Business-type
                          Activities                       Activities                               Total
 Fiscal Year(s)    Principal           Interest   Principal             Interest        Principal           Interest
     2010           $18,785             $10,545     $34,880              $46,163         $53,665             $56,708
     2011            16,315               9,694      36,530               44,551          52,845              54,245
     2012            11,443               9,090      38,925               42,760          50,368              51,850
     2013             8,595               8,772      40,885               40,727          49,480              49,499
     2014            10,650               8,436      43,305               38,539          53,955              46,975
  2015-2019          59,240              34,165     171,615              164,934         230,855             199,099
  2020-2024          64,660              18,732     175,855              119,957         240,515             138,689
  2025-2029          43,870               3,136     202,405               68,144         246,275              71,280
  2030-2034                                         143,245               21,060         143,245              21,060
  2035-2039                                           9,050                 458             9,050               458
     Total         $233,558            $102,570    $896,695             $587,293       $1,130,253           $689,863




                                                              63
                                            Lee County, Florida
                                  NOTES TO THE FINANCIAL STATEMENTS
                                            September 30, 2009



                                                            Business-type Activities
                     Port Authority         Water and Wastewater           Transportation Facilities           Solid Waste
Fiscal Year(s)   Principal       Interest   Principal      Interest         Principal        Interest   Principal        Interest
    2010           $8,855        $20,980      $5,130         $8,115           $6,610          $8,939     $14,285              $8,129
    2011            9,240         20,587       5,310          7,925            6,890            8,658     15,090               7,381
    2012            9,865         20,116       5,510          7,717            7,710            8,331     15,840               6,596
    2013           10,415         19,551       5,725          7,496            8,070            7,959     16,675               5,721
    2014           10,995         18,943       5,950          7,253            8,750            7,574     17,610               4,769
 2015-2019         65,120         84,315      34,245         31,592           45,495          30,797      26,755              18,230
 2020-2024         63,160         65,946      43,375         22,237           34,965          21,143      34,355              10,631
 2025-2029         83,735         44,744      54,785         10,176           38,740          11,378      25,145               1,846
 2030-2034        111,760         16,006      12,375           309            19,110            4,745
 2035-2039                                                                     9,050             458
                 $373,145       $311,188    $172,405       $102,820         $185,390        $109,982    $165,755             $63,303




Defeased Bonds                                                        Bond Resolutions


I  n prior years, the County defeased certain revenue
   bonds by placing the proceeds of new bonds in an
irrevocable trust to provide for all future debt
                                                                      T   he resolution for the following bonds established
                                                                          certain accounts and determined the order in
                                                                      which certain revenues are to be deposited into
service payments on old bonds. Accordingly, the                       those accounts. In addition, there are various other
trust account assets and the liability for the defeased               covenants established by the official statements and
bonds are not included in the County’s financial                      County resolutions, including such items as debt
statements.                                                           service coverage, reporting requirements, and
                                                                      maintenance of facilities. Management believes that
The amount of defeased bonds outstanding at                           it has complied, in all material respects, with these
September 30, 2009, consisted of the following                        covenants. All required balances at September 30,
(dollars in thousands):                                               2009, were maintained on all issues. The following
                                                                      issues are still outstanding:
Capital Bonds, Series 1979                       $1,425
Justice Center Complex, Inc. Improve-                                 Revenue Bonds
    ment Revenue Bonds, Series 1981               20,665
Airport Revenue Bonds, Series 1980                 3,380              Capital Refunding Revenue Bonds, Series 1993B
Airport Revenue Bonds, Series 1983                 2,505              Capital Refunding Revenue Bonds, Series 1997A
Gulf Environmental Services, Inc. Water                               Local Option Gas Tax Refunding Revenue Bonds,
    and Sewer System Revenue Bonds,                                     Series 1997
    Series 1998                                  52,385               Capital Refunding Revenue Bonds, Series 1999A
 Airport Revenue Bonds, Series 2000B             36,180               Capital Revenue Bonds, Series 2000
         Total                                 $116,540               Capital & Transportation Facilities Refunding
                                                                        Revenue Bonds, Series 2003
                                                                      Tourist Development Tax Refunding Revenue
                                                                        Bonds, Series 2004
                                                                      Five Cent Local Option Gas Tax Refunding Revenue
                                                                        Bonds, Series 2004
                                                                      Capital Revenue Bonds, Series 2004




                                                                   64
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


Capital Revenue Bonds, Series 2006                               ranged from 0.41 percent to 5.0 percent. The
Certificates of Participation, Series 1993                       outstanding balance was $20,500,000.
Passenger Facility Charge Revenue & Refunding
  Bonds, Series 1998                                         The County has entered into a loan agreement with
Airport Revenue Bonds, Series 2000A                          a commercial bank to provide long-term financing
Airport Revenue Refunding Bonds, Series 2002                 for certain capital projects used in governmental
Airport Revenue Refunding Bonds, Series 2005                 activities. The loan is collateralized by special
Water and Sewer Revenue Bonds, Series 1999A                  assessments levied against the benefited property
Water and Sewer Refunding Revenue Bonds, Series              owners of certain MSBU of the County. Interest is
  2003A                                                      payable semi-annually. Principal is payable in equal
Water and Sewer Revenue Bonds, Series 2003B                  annual installments maturing in fiscal year 2018.
Transportation Facilities Refunding Revenue Bonds,           The descriptions and the outstanding balances of the
  Series 2001A                                               variable debt at September 30, 2009, were as follows:
Transportation Facilities Refunding Revenue Bonds,
  Series 2004B                                                   Bal Isle Drive Sewer district loan was issued on
Transportation Facilities Refunding Revenue Bonds,               June 4, 2004, for $79,000. For the year ended
  Series 2005A                                                   September 30, 2009, the interest rate was 6.12
Transportation Facilities Revenue Bonds, Series                  percent. The interest rate is fixed until 2014
  2005B                                                          when it becomes variable and is calculated at
Solid Waste System Refunding Revenue Bonds,                      133 percent of the five-year Treasury note yield.
  Series 2001                                                    The outstanding balance was $45,000.
Solid Waste System Revenue Bonds, Series 2006A
Solid Waste System Refunding Revenue Bonds,                      Country/Triple Crown Court Waterline district
  Series 2006B                                                   loan was issued on July 15, 2004, for $195,000.
                                                                 For the year ended September 30, 2009, the
Variable Debt                                                    interest rate was 5.95 percent. The interest rate
                                                                 is fixed until 2014 when it becomes variable and
                                                                 is calculated at 133 percent of the five-year
T   he County has entered into loan agreements
    with the Florida Local Government Finance
Commission (FLGFC) for governmental and
                                                                 Treasury note yield. The outstanding balance
                                                                 was $105,000.
business-type activities. The descriptions and the
outstanding balances of the variable debt at                     Cottage Point Waterline district loan was issued
September 30, 2009, were as follows:                             on July 28, 2004, for $131,000. For the year
                                                                 ended September 30, 2009, the interest rate was
    Commercial paper loans A-21-1, A-21-2, A-21-3,               5.93 percent. The interest rate is fixed until 2014
    and A-21-4 for $20,500,000 were issued on                    when it becomes variable and is calculated at
    November 1, 2005, April 20, 2006, September                  133 percent of the five-year Treasury note yield.
    28, 2006, and February 15, 2007, respectively, to            The outstanding balance was $72,000.
    finance certain transportation related capital
    projects in business-type activities. Payments           The Port Authority entered into a $10,000,000 line of
    are payable from budgeted and appropriated               credit on July 8, 2004, with a commercial bank to
    non-ad valorem revenues and other legally                finance certain airport-related capital projects in
    available County funds not otherwise pledged             business-type activities at an interest rate of 117
    and from the net revenues of the Transportation          percent of London Interbank Offered Rates (LIBOR).
    Facilities. Principal is due at maturity on              Effective January 1, 2006, a more favorable interest
    December 1, 2009, and interest is payable                rate was negotiated of 67 percent of LIBOR plus 73
    monthly on the unpaid balance at variable rates.         basis points which was 2.40 percent as of September
    For the year ended September 30, 2009, the rates         30, 2009. Principal is payable semi-annually
                                                             beginning June 1, 2006 and interest is payable




                                                        65
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


monthly on the unpaid balance until final maturity              The outstanding and available balances as of
on December 1, 2020. The line of credit is                      September 30, 2009, were $4,832,000 and $5,168,000,
collateralized by a lien on and a pledge of the net             respectively.
revenues of Page Field General Aviation Airport.

The annual debt service requirements for variable debt at September 30, 2009, were as follows (dollars in
thousands):

                         Governmental                       Business-type
                            Activities                        Activities                             Total
  Fiscal Year(s)      Principal          Interest       Principal           Interest     Principal           Interest
      2010                  $27              $13         $20,825                $56       $20 852                $69
      2011                  27                12             340                 39           367                 51
      2012                  27                10             355                 36           382                 46
      2013                  27                 8             375                 33           402                 41
      2014                  27                 7             395                 29           422                 36
    2015-2019               87                 6           2,290                 86          2 377                92
    2020-2024                                                752                  4           752                  4

                          $222               $56         $25,332               $283        $25 554              $339




Notes Payable                                                        Diplomat Parkway district loan for $3,659,000
                                                                     was issued on August 18, 1998, at an interest
                                                                     rate of 5.49 percent. The outstanding balance
T   he County has entered into loan agreements
    with several banks and government agencies.
These loans and agreements are used for both
                                                                     was $573,000.

governmental and business-type activities. The                       Pinecrest district loan was issued on March 31,
descriptions and outstanding balances at September                   2000, for $499,000 at an interest rate of 6.332
30, 2009, were as follows:                                           percent. The outstanding balance was $153,000.

Commercial Banks                                                     Rainbow Farms district loan was issued on April
                                                                     18, 2002, for $66,000 at an interest rate of 5.365
The County has entered into loan agreements with                     percent. The outstanding balance was $19,000.
two commercial banks to provide long-term
financing for certain capital projects. The loans are                Iona Shores district loan was issued on April 18,
collateralized by special assessments levied against                 2002, for $59,000 at an interest rate of 5.365
the benefited property owners of certain municipal                   percent. The outstanding balance was $16,000.
service benefit units (MSBU) of the County. Interest
is payable semi-annually. Principal is payable in                    Northeast Hurricane Bay district loan was
equal annual installments maturing in fiscal years                   issued on August 5, 2005, for $244,000 at an
2010 through 2024.                                                   interest rate of 5.459 percent. The outstanding
                                                                     balance was $111,000.
    South Pebble/Broken Arrow district loan was
    issued on May 27, 1998, for $360,000 at an                       Gasparilla Beach Renourishment district loan
    interest rate of 5.74 percent. The outstanding                   was issued on August 10, 2007, for $572,000 at
    balance was $89,000.                                             an interest rate of 5.5 percent. The outstanding
                                                                     balance was $343,000.




                                                              66
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


   Briarcrest Sewer district loan was issued on                    capitalized interest, at an interest rate of 2.67
   August 10, 2007, for $324,000 at an interest rate               percent for the construction of the North Lee
   of 5.51 percent. The outstanding balance was                    County Water Treatment Plant. The agreement
   $281,000.                                                       was amended to authorize the borrowing,
                                                                   excluding capitalized interest, of an additional
   Harbor Drive district loan was issued on                        $6,000,000, $5,000,000, $3,000,000, and $3,200,000
   February 29, 2008, for $867,000 at an interest rate             at interest rates of 2.58 percent, 2.64 percent, 2.64
   of 4.67 percent. The outstanding balance was                    percent, and 2.77 percent respectively. As of
   $824,000.                                                       9/30/09 the County has received a total of
                                                                   $21,598,000 which includes $20,575,000 in
   Western Acres district loan was issued on April                 disbursements and $1,023,000 in service fees and
   25, 2008, for $1,696,000 at an interest rate of 4.36            capitalized interest. The first of 40 semiannual
   percent.      The outstanding balance was                       loan payments was due on July 15, 2008, and
   $1,611,000.                                                     thereafter the semiannual installments of
                                                                   $691,000 are due on January 15 and July 15 of
   Emily Lane district loan was issued on August                   each year until all amounts due have been fully
   19, 2009, for $457,000 at an interest rate of 3.99              paid. The outstanding balance was $20,277,000.
   percent. The outstanding balance was $457,000.
                                                                   On March 3, 2009, the Lee County Water and
Florida Department of Environmental Protection                     Wastewater System entered into an agreement
                                                                   with the Florida Department of Environmental
   On October 17, 1991, the Lee County Water and                   Protection to borrow up to $35,930,000 at an
   Wastewater System entered into an agreement                     interest rate of 3.17 percent. To date the County
   with the Florida Department of Environmental                    has received $10,364,000 in disbursements from
   Protection to borrow $10,135,000 at interest rates              this loan. The outstanding balance also includes
   of 3.57 percent and 3.66 percent. The first                     capitalized interest and service fees of $364,000.
   installment of $726,000 was due on October 1,                   The 40 semiannual loan payments began on
   1993, and thereafter the annual installments are                October 15, 2010, and will continue
   $721,000. The outstanding balance was                           semiannually thereafter on April 15 and October
   $2,639,000.                                                     15 of each year until all amounts due have been
                                                                   fully paid. The outstanding balance was
   On April 17, 2001, the Lee County Water and                     $10,364,000.
   Wastewater System entered into an agreement
   with the Florida Department of Environmental                Florida Department of Transportation
   Protection to borrow up to $4,956,000 at an
   interest rate of 3.08 percent. To date the County               On April 30, 2002, and June 17, 2002, the Lee
   has received $3,278,000 in disbursements from                   County Transportation Facilities entered into
   this loan. The outstanding balance also includes                agreements with the Florida Department of
   capitalized interest and service fees of $587,000.              Transportation to borrow $1,500,000 from the
   The 20 semiannual loan payments began on July                   Florida Toll Facilities Revolving Trust Fund. All
   15, 2007, and will continue semiannually                        interest earned on the loan proceeds was repaid
   thereafter on January 15 and July 15 of each year               to the Trust Fund on September 20, 2005. The
   until all amounts due have been fully paid. The                 loan has been expended on the design of the
   outstanding balance was $3,006,000.                             Cape Coral and Sanibel Toll Facilities
                                                                   Rehabilitation projects. The interest free loan is
   On June 15, 2005, the Lee County Water and                      to be repaid in five annual installments of
   Wastewater System entered into an agreement                     $300,000 beginning in fiscal year 2006 through
   with the Florida Department of Environmental                    2010. The outstanding balance is $300,000.
   Protection to borrow $3,375,000, excluding




                                                          67
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2009


   On January 22, 2003, the Lee County                               installments beginning in fiscal year 2008
   Transportation Facilities entered into an                         through 2012. The outstanding balance was
   agreement with the Florida Department of                          $1,800,000.
   Transportation to borrow $1,500,000 from the
   Florida Toll Facilities Revolving Trust Fund. All                 On June 29, 2006, the Lee County Transportation
   interest earned on the loan proceeds was repaid                   Facilities entered into an agreement with the
   to the Trust Fund on September 20, 2005. The                      Florida Department of Transportation to borrow
   loan has been expended on the design of Sanibel                   $1,500,000 from the Florida Toll Facilities
   Bridge replacement spans B and C. The interest                    Revolving Trust Fund.        The loan will be
   free loan is to be repaid in three annual                         expended on the design of the Colonial
   installments of $500,000 beginning in fiscal year                 Boulevard elevated expressway. The interest
   2008 through 2010. The outstanding balance is                     free loan is to be repaid in three annual
   $500,000.                                                         installments of $500,000 beginning in fiscal year
                                                                     2013 through 2015. The outstanding balance is
   On December 4, 2003, the Lee County                               $1,500,000.
   Transportation Facilities entered into an
   agreement with the Florida Department of                          On January 28, 2009, the Lee County Transit
   Transportation to borrow $1,500,000 from the                      Division entered into an agreement with the
   Florida Toll Facilities Revolving Trust Fund. All                 Florida Department of Transportation to borrow
   interest earned on the loan proceeds was repaid                   $1,500,000 from the State Infrastructure Bank
   to the Trust Fund on September 5, 2006. The                       (SIB). The loan has been procured for the
   loan has been expended on the design of span A                    purchase of transit and paratransit vehicles.
   of the Sanibel Bridge. The interest free loan is to               This interest free loan is to be repaid in lump
   be repaid in five annual installments of $300,000                 sum in fiscal year 2012.       The outstanding
   beginning in fiscal year 2009 through 2013. The                   balance is $1,500,000.
   outstanding balance is $1,200,000.

   On July 25, 2005, the Lee County Transit
   Division entered into an agreement with the
   Florida Department of Transportation to borrow
   $3,000,000 from the State Infrastructure Bank
   (SIB). The loan has been procured for the
   development of a new transit facility. This
   interest free loan is to be repaid in five annual

The annual debt service requirements for notes payable at September 30, 2009, were as follows (dollars in
thousands):

                             Governmental                    Business-type
                               Activities                      Activities                            Total
      Fiscal Year(s)     Principal          Interest     Principal           Interest    Principal           Interest
          2010               $553              $210        $3,538               $717       $4,091               $927
          2011                553               187         3,173                986        3,726              1,173
          2012                553               158         4,744                916        5,297              1,074
          2013                280               129         3,217                843        3,497                972
          2014                238               115         2,271                768        2,509                883
        2015-2019             930               430         8,986              3,075        9,916              3,505
        2020-2024           1,370               197         8,516              1,916        9,886              2,113
        2025-2029               0                 0         7,955                657        7,955                657
        2030-2034               0                 0           686                 16          686                 16
                           $4,477            $1,426       $43,086             $9,894      $47,563            $11,320


                                                             68
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009


Long-Term Internal Advances                                   Arbitrage Rebate Payable


O    n October 28, 2008, the County entered into a
     Spring    Training       Facility  Development           A    ny excess interest earnings on tax-exempt bond
                                                                   proceeds must be remitted to the federal
                                                              government in five-year intervals. Even though a
Agreement and a Spring Training Facility Lease
Agreement on December 9, 2008, which collectively             payment may not be required until several years
obligates the County to construct and maintain a              into the future, the liability is recognized as it is
spring training facility for the Boston Red Sox for a         probable and measurable. The liability is recorded
period of 30 years. Construction of the facility is           in both governmental and business-type activities.
funded with an advance from the MSTU fund for                 The total obligations as of September 30, 2009, were
$75,000,000 at an interest rate of 1.5 percent, to be         as follows (dollars in thousands):
reviewed every three years, as approved by the
Board on June 2, 2009.      Repayment of the loan is              Governmental Activities                    $293
anticipated by fiscal year 2039 with Tourist                            Total                                $293
Development Tax revenues or earlier with proceeds
from a tax exempt bond issue if market conditions
are favorable.


Other Obligations
Self-Insurance Claims Payable


S   elf-insurance claims payable are fully described
    in Note VIII. Since the self-insurance activity is
accounted for in an internal service fund, it has been
categorized in the governmental activities on the
government-wide Statement of Net Assets. The
balance at September 30, 2009, consisted of the
following (dollars in thousands):

Self-insurance group health & dental         $5,895
Sheriff Internal Service Fund                 2,708
Self-insurance general liability             10,936
Total self-insurance claims payable         $19,539




                                                         69
                                                 Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                                  September 30, 2009




Long-Term Debt (continued)
Changes in Long-Term Debt
Changes in bonded and other indebtedness of the County for the year ended September 30, 2009, were as follows (dollars
in thousands):

                                           Beginning                                        Ending         Due Within
                                            Balance        Additions       Reductions       Balance         One Year
Governmental Activities:
Bonds payable:
   Revenue bonds                             $252,598                         ($19,040)       $233,558         $18,785
   Less/plus deferred amounts:
       Unamort discount/premium                 4,307                             (449)          3,858             401
       Unamortized loss/gain                     (524)                             319            (205)           (250)
           Total Bonds Payable                256,381                          (19,170)        237,211          18,936
Variable debt                                     889                             (667)            222              27
Notes payable                                   4,597             $456            (576)          4,477             553
Accreted interest payable                       8,454              858                           9,312
Other:
   Self-insurance claims payable                17,248           74,093        (71,802)         19,539           9,831
   Arbitrage rebate payable                         12              293            (12)            293
Compensated absences                            22,912           16,930        (16,735)         23,107              42
       Total governmental activity
         long-term liabilities               $310,493           $92,630      ($108,962)       $294,161         $29,389
Business-Type Activities:
Port Authority
Bonds payable:
   Revenue bonds                             $381,660                          ($8,515)       $373,145          $8,855
   Less/plus deferred amounts:
       Unamort discount/premium                (2,385)                             147          (2,238)           (163)
       Unamortized loss/gain                   (3,727)                             277          (3,450)           (186)
          Total Bonds Payable                 375,548                           (8,091)        367,457           8,506
Variable debt                                   5,137                             (305)          4,832             325
Arbitrage rebate payable                            1                               (1)            -
Compensated absences                            1,071            $2,207         (2,157)          1,121             731
       Total Port Authority
        long-term liabilities                $381,757            $2,207       ($10,554)       $373,410          $9,562




                                                           70
                                             Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2009



Long-Term Debt (continued)
Changes in Long-Term Debt (continued)




                                        Beginning                                   Ending       Due Within
                                         Balance      Additions      Reductions     Balance       One Year
Water and Wastewater
Bonds payable:
   Revenue bonds                          $177,365                       ($4,960)    $172,405        $5,130
   Less/plus deferred amounts:
      Unamort discount/premium               1,868                          (150)       1,718           143
      Unamortized loss/gain                 (6,791)                          676       (6,115)         (623)
          Total Bonds Payable              172,442                        (4,434)     168,008         4,650
Notes payable                               24,528         $13,564        (1,806)      36,286         1,838
Compensated absences                         1,031           1,103        (1,236)         898             7
      Total Water and Wastewater
        long-term liabilities             $198,001         $14,667       ($7,476)    $205,192        $6,495
Transportation Facilities
Bonds payable:
   Revenue bonds                          $191,785                       ($6,395)    $185,390        $6,610
   Less/plus deferred amounts:
      Unamort discount/premium               6,216                          (672)       5,544           643
      Unamortized loss/gain                (11,483)                        1,318      (10,165)       (1,193)
          Total Bonds Payable              186,518                        (5,749)     180,769         6,060
Variable debt                               31,878                       (11,378)      20,500        20,500
Notes payable                                4,758                        (1,258)       3,500         1,100
Compensated absences                           285           $284           (312)         257             1
      Total Transportation Facilities
        long-term liabilities             $223,439           $284       ($18,697)    $205,026       $27,661




                                                      71
                                             Lee County, Florida
                                  NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2009



Long-Term Debt (continued)
Changes in Long-Term Debt (continued)



                                        Beginning                                    Ending       Due Within
                                         Balance      Additions       Reductions     Balance       One Year
Solid Waste
Bonds payable:
   Revenue bonds                          $179,345                       ($13,590)    $165,755       $14,285
   Less/plus deferred amounts:
      Unamort discount/premium               1,206                           (479)         727           316
      Unamortized loss/gain                 (2,135)                           752       (1,383)         (553)
           Total Bonds Payable             178,416                        (13,317)     165,099        14,048
Landfill closure & postclosure costs        10,254           $1,589                     11,843
Compensated absences                           226              225          (238)         213             1
      Total Solid Waste
         long-term liabilities            $188,896           $1,814      ($13,555)    $177,155       $14,049

Other Non-Major - Transit
Notes Payable                               $2,400           $1,500        ($600)       $3,300          $600
Compensated absences                           561              798         (867)          492             3
      Total Other Non-Major
        long-term liabilities               $2,961           $2,298       ($1,467)      $3,792          $603


Total Business-Type Activities
Bonds payable:
   Revenue bonds                          $930,155              $0       ($33,460)    $896,695       $34,880
   Less/plus deferred amounts:
       Unamort discount/premium              6,905                0        (1,154)       5,751           939
       Unamortized loss/gain               (24,136)               0         3,023      (21,113)       (2,555)
           Total Bonds Payable             912,924                0       (31,591)     881,333        33,264
Variable Debt                               37,015                0       (11,683)      25,332        20,825
Notes payable                               31,686           15,064        (3,664)      43,086         3,538
Arbitrage rebate payable                         1                0            (1)           0             0
Landfill closure & postclosure costs        10,254            1,589             0       11,843             0
Compensated absences                         3,174            4,617        (4,810)       2,981           743
       Total business-type activity
         long-term liabilities            $995,054        $21,270        ($51,749)    $964,575       $58,370




                                                        72
                                          Lee County, Florida
                         NOTES TO THE FINANCIAL STATEMENTS
                                            September 30, 2009




NOTE VI. SEGMENT INFORMATION

Segment Information- Port Authority
The County has outstanding revenue bonds which are financed by Southwest Florida International
Airport revenues. These activities , and the activities of the Page Field General Aviation and other Port
Authority activities, are accounted for in a single fund (Lee County Port Authority). Summary financial
information for the Southwest Florida International Airport is presented below (dollars in thousands) as
of September 30, 2009.

                                                                                   Southwest Florida
                                                                                  International Airport
Condensed Statement of Net Assets
Assets
   Current assets                                                                          $87,597
   Restricted assets                                                                        50,553
   Capital assets                                                                          633,329
   Other assets                                                                              3,849
        Total assets                                                                       775,328
Liabilities
   Current liabilities                                                                      17,454
   Current liabilities payable from restricted assets                                       16,687
   Noncurrent liabilities                                                                  330,578
        Total liabilities                                                                  364,719
Net assets
   Invested in capital assets, net of related debt                                         323,374
   Restricted                                                                               13,540
   Unrestricted                                                                             73,695
        Total net assets                                                                  $410,609
Condensed Statement of Revenues, Expenses, and Changes in Net Assets
Operating revenues
  User fees                                                                                $41,618
  Rentals                                                                                    2,496
  Concessions                                                                               35,171
  Miscellaneous                                                                                227
  Less: Rebates                                                                             (2,367)
       Total operating revenues                                                             77,145
Operating expenses
  Depreciation                                                                               17,607
  Other operating expenses                                                                   55,383
       Total operating expenses                                                              72,990
Operating income                                                                              4,155
Non-operating revenues (expenses)
  Investment earnings                                                                           703
  Interest expense                                                                          (20,100)
  Other non-operating                                                                           399
       Total non-operating revenues (expenses)                                              (18,998)


                                                        73
                                       Lee County, Florida
                        NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2009




Segment Information- Port Authority (continued)
                                                              Southwest Florida
                                                             International Airport

Capital Contributions                                                   6,936
Transfers                                                                (859)
Change in net assets                                                   (8,766)
Beginning net assets                                                  419,375
Ending net assets                                                    $410,609


Condensed Statement of Cash Flows
Net cash provided (used) by:
Operating activities                                                  $26,083
Noncapital financing activities                                        (2,029)
Capital and related financing activities                              (15,444)
Investing activities                                                      908
   Net increase                                                         9,518
Beginning cash and equity in pooled cash and investments               93,434
Ending cash and equity in pooled cash and investments                $102,952




                                                    74
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2009


NOTE VII. OTHER POSTEMPLOYMENT                               Medicare Part B premium was $96. However, this
BENEFITS                                                     policy was modified on January 1, 2008; therefore,
                                                             the Board does not currently subsidize any portion
                                                             of the medical or Medicare premiums for the
The County maintains two single-employer, defined
                                                             employees hired after that date. The Clerk of Circuit
benefit other postemployment benefit plans (OPEB),
                                                             Court does not subsidize any contribution rates.
the Group Health Program for Lee County, and the
                                                             Vision and dental insurance are offered to retirees;
Lee County Sheriff Health Care Plan.
                                                             however, they are not subsidized by the County.
                                                             The plan also allows retirees the option to continue
Plan Description                                             to participate in the GHPLC life insurance policy.
                                                             The life insurance is only available to the retiree, and
Group Health Program for Lee County                          has a face value of $5,000. The table listed below
                                                             summarizes the retirees’ monthly contribution rates
The Group Health Program for Lee County                      for 2009.
(GHPLC) provides medical, dental, vision and life
insurance benefits (OPEB benefits) to eligible
County retirees and their spouses. All the                                             General        Clerk of Circuit
                                                                                       Employee       Court Retirees
Constitutional Officers, except the Lee County
                                                                                        Retirees
Sheriff, participate in GHPLC, which is a self-funded        Medical/ Prescriptions:
insurance plan that is administered by Aetna. The            Retiree only
Board has the authority to establish and amend the              Pre 65 years old         $316               $632
                                                                Medicare Eligible         220                439
benefit provisions of the plan in accordance with
                                                             Retiree plus spouse
Chapter 110.123, Florida Statutes.                              Pre 65 years old          648              1,297
                                                                Medicare Eligible         456                911
Lee County Sheriff Health Care Plan                          Retiree plus dependent
                                                                Pre 65 years old          638              1,277
                                                                Medicare Eligible         446                891
The Lee County Sheriff's Office (LCSO) operates a            Retiree plus family
separate heath care plan. Lee County Sheriff Health             Pre 65 years old          653              1,307
                                                                Medicare Eligible         461                921
Care Plan (LCSHCP) offers health, dental, and
vision coverage to eligible LCSO retirees and their          Life:
spouses. The plan also allows retirees the option to          Individual Coverage          5                  5
continue to participate in the LCSHCP life insurance          Spouse                      N/A                N/A
policy. The life insurance is only available to the
retiree, and has a face value of $5,000. The LCSHCP
is a single-employer plan and is administered by Self
Insured Benefit Administrator. Authority to
                                                             An irrevocable trust has been established with
establish and amend the benefit provisions of the
                                                             ICMA-RC and a payment of $42,594,000 was made
plan is in accordance with Chapter 110.123, Florida
                                                             in December, 2008; however, there is no formal plan
Statutes.
                                                             established for future contributions to the trust or
                                                             payments made from the trust. The current year’s
Funding Policy                                               contribution is a combination of the partial payment
                                                             to the trust fund as well as the County’s payment on
Group Health Program for Lee County                          behalf of the retirees’ for their insurance coverage on
                                                             a pay-as-you-go basis.
The contribution requirements of the plan members
are established and may be amended by the Board              Lee County Sheriff Health Care Plan
and the Constitutional Officers. The County
subsidizes 50 percent of the monthly medical                 Chapter 74.522, Laws of Florida, as amended by
premiums and 100 percent of Medicare B premiums              Chapter 99.434, and 2003.329, Laws of Florida,
for the retiree and their spouse. The monthly                establishes the contribution requirements of the plan



                                                        75
                                           Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                                     September 30, 2009


members. The current published monthly rates for                  Annual OPEB Cost and Net OPEB
Health Care coverage are $683 for single and $1,286
for retiree and spouse. An $80 discount is applied                Obligation
for plan members enrolled in Medicare Part B. The
LCSO subsidizes a percentage of the monthly major                 The annual other postemployment benefit (OPEB)
medical and hospitalization insurance based on the                cost (expense) is calculated based on the Annual
number of years of service credited to the Florida                Required Contribution (ARC) of the employer, an
Retirement System (FRS) before retirement. Vision                 amount actuarially determined in accordance with
and dental insurance are offered to retirees;                     the parameters of GASB 45. The ARC represents a
however, they are not subsidized by LCSO.                         level funding that, if paid on an ongoing basis, is
                                                                  projected to cover normal cost each year and
The table below shows the contribution percentages                amortize any unfunded actuarial liabilities (or
for the corresponding years of service.                           funding excess) over 30 years. The current ARC rate
                                                                  as a percentage of annual covered payroll is 14
                                                                  percent and 20 percent for GHPLC and LCSHCP,
 Percent of the Total Contribution Rates Paid by Retiree          respectively.

   Eligible Service Credit at                                     The following table shows the components of the
  Retirement or Termination      Retiree      Dependent           County and Sheriff's OPEB cost for the year, the
   More than 6 years but less
                                                                  estimated contributions to the plan per the actuary
      than 15 years                100%           100%            report, and the changes in the net OPEB obligation.
   15 years                         25%           100%
   16 years                         20%           100%
   17 years                         15%           100%                                              GHPLC              LCSHCP
   18 years                         10%           100%
   19 years                          5%           100%            Annual Required Contribution     $23,665,000     $15,281,000
   20 years or more                  0%            50%            Interest on net OPEB Obligation     2,433,000         895,000
                                                                  Adjustment to ARC                 (2,709,000)       ( 799,000)
                                                                  Annual OPEB cost/expense         $23,389,000      $15,377,000
The retiree contribution rate for the life insurance              Employer contributions made      (45,263,000)      (2,829,000)
                                                                  Increase, (decrease) in net
policy is $1.40 per month. The plan is funded on a
                                                                       OPEB obligation            ($21,874,000)        $12,548,000
pay-as-you-go basis.                                              Net OPEB obligation-
                                                                       beginning of year             34,757,000        $22,374,000
                                                                  Net OPEB obligation-
                                                                       end of year                  $12,883,000        $34,922,000




The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
for fiscal year 2009 and the two preceding years were as follows:

                          Year Ended       Annual OPEB Cost   Percent of OPEB Cost Contributed      Net OPEB Obligation

GHPLC                     09/30/2009         $23,389,000                   193.5%                        $12,883,000
                          09/30/2008         $26,269,000                     9.3%                        $34,757,000
                          09/30/2007         $12,968,000                    15.7%                        $10,937,000

LCSHCP                    09/30/2009         $15,377,000                    18.4%                        $34,922,000
                          09/30/2008         $13,048,000                     9.0%                        $22,374,000
                          09/30/2007         $12,153,000                    13.6%                        $10,504,000




                                                                76
                                           Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                                    September 30, 2009


Funded Status and Funding Progress
The funded status of the plans was as follows:

                                                                              GHPLC                         LCSHCP
                                                                           As of 09/30/09                 As of 09/30/09

Actuarial accrued liability (a)                                              $157,913,000                   $170,587,000
Actuarial value of plan assets (b)                                             42,664,000                              0
Unfunded actuarial accrued liability (funding excess) (a)-(b)                $115,249,000                   $170,587,000

Funded ratio (b)/(a)                                                             27.0%                            0.0%
Covered payroll (c)                                                          $164,065,000                    $75,186,000
Unfunded actuarial accrued liability (funding excess) as a
    Percentage of covered payroll ((a)-(b))/(c)                                  70.2%                          226.9%




Actuarial valuations of an ongoing plan involve                      Significant methods and assumptions were as
estimates of the value of reported amounts and                       follows:
assumptions about the probability of occurrence of
events far into the future. Examples include
assumptions about future employment, mortality,                                                        GHPLC             LCSHCP
and the healthcare cost trend. Amounts determined
                                                                     Actuarial valuation date         10/01/2008      07/01/2008
regarding the funded status of the plan and the                      Actuarial cost method      Projected Unit Credit   Entry Age
annual required contributions of the employer are                    Amortization method             Level dollar, Level percentage
subject to continual revision as actual results are                                                      closed       of pay, closed
                                                                     Remaining amortization periods         27              28
compared with past expectations and new estimates
                                                                     Asset valuation method         Market-related Plan not funded
are made about the future. The schedule of funding                   Actuarial assumptions:
progress, presented as required supplementary                             Inflation rate                    3%               3%
information following the notes to the financial                          Investment rate of return         7%               4%
                                                                     Projected salary increases             n/a         4.5%-10.5%
statements, presents multiyear trend information
                                                                     Payroll growth assumptions            n/a              4.0%
that shows whether the actuarial value of plan assets                Healthcare inflation rate        9.0%, initial    9.0%, initial
is increasing or decreasing over time relative to the                                               5.0%, ultimate    4.0%, ultimate
actuarial accrued liabilities for benefits.
                                                                     Actuarial valuation date         10/01/2007       07/01/2006
                                                                     Actuarial cost method       Projected Unit Credit Entry Age
Actuarial Methods and Assumptions                                    Amortization method             Level dollar, Level percentage
                                                                                                         closed       of pay, closed
                                                                     Remaining amortization periods         28               30
Projections of benefits for financial reporting                      Asset valuation method         Plan not funded Plan not funded
purposes are based on the substantive plan (the plan                 Actuarial assumptions:
as understood by the employer and plan members)                           Inflation rate                    3%                3%
                                                                          Investment rate of return         5%                4%
and include the types of benefits provided at the                    Projected salary increases            n/a           4.5%-10.5%
time of each valuation and the historical pattern of                 Payroll growth assumptions            n/a               4.0%
sharing of benefit cost between the employer and                     Healthcare inflation rate           9%, initial    11.7%, initial
plan members to that point. The actuarial methods                                                      5%, ultimate    4.0%, ultimate

and assumptions used include techniques that are
designed to reduce short-term volatility in actuarial
accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the
calculations.



                                                                77
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                               September 30, 2009


NOTE VIII. OTHER INFORMATION                               program, the SIR provides coverage in the areas
                                                           mentioned      below.     The   County    purchases
                                                           commercial insurance for claims in excess of
Retirement Plan                                            coverage provided by the fund and for all other
                                                           risks of loss. Settled claims have not exceeded this
Plan Description and Provisions                            commercial coverage in any of the past three fiscal
                                                           years. As a result there was no reduction in

T    he County participates in the Florida Retirement
     System (FRS), a cost sharing, multiple-employer,
public employee retirement system, which covers
                                                           insurance coverage.

                                                           The County remains liable for open claims asserted
substantially all of the full-time and part-time           prior to October 1, 1987, and after September 30,
employees. The FRS is noncontributory and is               1989, covered under the existing self-insurance
totally administered by the State of Florida. Benefits     program, limited to the established annual loss fund
under the plan vest after six years of service.            limits for unasserted claims for a period, generally
Employees who retire at or after age 62 (age 55 for        four years after date of occurrence. Claims that are
special risk) or 30 years of service (25 years for         filed or settled after the end of the fiscal year of
special risk), with six years of credited service, are     occurrence are charged to, and accumulated within,
entitled to an annual retirement benefit, payable          the year of occurrence. Consequently, the County’s
monthly for life. The FRS also provides for early          total liability within any one year is limited to the
retirement at reduced benefits and death and               annual loss fund limits.
disability benefits. These benefit provisions and all
other requirements are established by Chapters 112         From October 1, 1987, to September 30, 1989, the
and 121, Florida Statutes.                                 County was a member of the Southwest Florida
                                                           Intergovernmental Risk Management Association
Pension costs for the County as required and               (SFIRMA), a local government liability risk pool.
defined by State statute ranged between 10 percent         SFIRMA administered insurance activities similar to
and 21 percent of gross salaries for fiscal year 2009.     those provided by the Board’s SIR program.
For fiscal years ended September 30, 2009, 2008, and       SFIRMA absorbed losses up to a specific amount
2007, the County contributed 100 percent of the            annually and purchased excess and other specific
required     contributions.   These     contributions      coverages from third-party carriers.
aggregated $34 million, $35 million, and $33 million,
respectively, which represents 13 percent, 13              The County remains liable for estimated additional
percent, and 13 percent of covered payroll.                assessments of $130,000 arising from its years of
                                                           membership in SFIRMA, which has changed its
A copy of the FRS’s June 30, 2009 annual report can        name to Public Risk Management of Florida.
be obtained by writing to the Division of Retirement,
PO Box 9000, Tallahassee, Florida 32315-9000, or by        Additionally, the Board and the Sheriff maintain
phoning (850) 488-5706.                                    self-insurance internal service funds to administer
                                                           insurance activities relating to countywide employee
Risk Management                                            group health and dental programs. The County
                                                           absorbs losses related to these programs up to

T   he County is exposed to various risks of loss
    related to torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries
                                                           aggregate annual loss fund limits. Excess and other
                                                           specific coverages are purchased from third-party
                                                           carriers. Funding for these programs is generated
to employees, and natural disasters.           After       by charges to the operating departments based on
September 30, 1989, and prior to October 1, 1987, the      management’s annual estimates of claim loss
Board established a Self-Insured Retention (SIR)           funding and administration/operating costs.
program (an internal service fund) to account for
and finance its uninsured risks of loss. Under this




                                                         78
                                                Lee County, Florida
                                      NOTES TO THE FINANCIAL STATEMENTS
                                                        September 30, 2009


At September 30, 2009, the County had recorded                           industry standards. These liabilities are subject to
liabilities equal to the amounts reflected as reserved                   adjustments in future years, which would be
and unasserted claims.        These amounts were                         recorded as claim expenses when they are estimated.
calculated by the third-party self-insurance
program’s underwriters and actuaries, based on

The County’s and Sheriff’s SIR programs and excess insurance provides coverage for all the County and Sheriff departments’ exposure.
Funding for the SIR is generated by charges to the operating departments based on management’s annual estimates of claim loss funding and
administration/operating costs. Changes in the County and Sheriff funds’ claims liability for the years ended September 30, 2009 and 2008,
were as follows (dollars in thousands):

                                                  Beginning of       Current Year Claims
                                                   Fiscal Year        and Changes in             Claim            Balance at
                                                    Liability             Estimates             Payments          Year- End
Self-Insurance Group Health and Dental:
2009                                                 $7,099                  $72,194              ($70,690)           $8,603
2008                                                  5,431                   61,024              ( 59,356)            7,099
Self-Insurance General Liability:
2009                                                $10,149                   $4,190               ($3,403)          $10,936
2008                                                 10,377                    2,106                ( 2,334)          10,149




Landfill Closure and Postclosure                                         and postclosure care at September 30, 2009. The
                                                                         Class I - MSW landfill facility configuration, as
Liability                                                                currently planned, is expected to provide
                                                                         approximately 15 years of disposal capacity for Lee

T   he Florida Department of Environmental
    Protection (FDEP) requires the County to place a
final cover on its landfill cells when it stops
                                                                         and Hendry Counties. Actual costs may be higher
                                                                         due to inflation, or changes in regulations.

accepting waste and to perform certain maintenance                       The County is required by FDEP to annually
and monitoring functions at the site for thirty years                    calculate closure and postclosure costs, and to
after closure. Although most closure and postclosure                     provide proof of its capacity to fund closure costs.
care costs will be paid only near or after the date                      The County is in compliance with these
that the landfill stops accepting waste, the County                      requirements, and at September 30, 2009, cash and
reports a small portion of these closure and                             investments of $6,110,000 are held for these
postclosure care costs as an operating expense based                     purposes. These are reported as restricted assets on
on certain minor closure activities that have                            the balance sheet.
occurred as of the balance sheet date. The amount
reported as landfill closure and postclosure care
liability in the fund statements, $11,843,000,
represents the cumulative portion of total estimated
                                                                         Commitments and Contingencies
closure and postclosure care as of September 30,
2009, based on the use of 28 percent of the capacity
of the 79.2 acre active disposal areas at the landfill.
                                                                         T   he County is currently receiving, and has
                                                                             received in the past, grants that are subject to
                                                                         special compliance audits by the grantor agency that
The total estimated cost for closure and postclosure
                                                                         may result in disallowed expense amounts. These
care for the landfill at September 30, 2009, was
                                                                         amounts constitute a contingent liability of the
$36,099,000. The County will recognize the
                                                                         County. The County does not believe any contingent
remaining estimated cost of closure and postclosure
                                                                         liabilities to be material.
care of $24,256,000 as the remaining estimated
capacity is filled. The County will recalculate its
                                                                         The County currently prepares rebate calculations
liability annually; the liability amount is based on
                                                                         on all debt subject to arbitrage per the United States
what it presently would cost to perform all closure




                                                                  79
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                                  September 30, 2009


department of the Treasury Regulations, Section               A lawsuit brought under the Bert J. Harris, Jr.
1.148, and the Internal Revenue Service Code of               Private Property Rights Protection Act (the “Act”)
1986. Rebates, if any, are paid to the Internal               alleges that an amendment to the Lee County
Revenue Service every fifth year after the year of            Comprehensive Plan applicable to Pine Island has
issuance and a final computation is completed when            reduced allowable densities to such a degree that
paid in full. Within the five-year period, any                their property values have been destroyed. (The
positive arbitrage (liability) can be offset by any           amendment changes allowable densities for parts of
negative arbitrage (non-liability). These rebates             Pine Island from one unit per acre to one unit per 17
constitute a contingent liability of the County. The          acres, but allows reclamation of densities of up to 70
County does not believe any contingent liabilities to         percent of the original if the property owner restores
be material.                                                  native habitat.) Their estimate of the total economic
                                                              impact of the amendment is approximately $61
The Sheriff has agreements with a corporation for             million. Discovery is proceeding on the Bert J.
the provision of inmate medical services and food             Harris Act issues in the case. Offers of settlement
services at its detention facilities. The contracts are       have been made to the plaintiffs in the case and have
paid 100 percent by the Sheriff through its annual            been rejected which may limit the County’s financial
budget. The food services are based on a cost per             exposure per the terms of the Act.
meal per inmate basis, and the future contract
commitment is estimated at approximately                      The County has answered the Complaint in the Adar
$3,100,000 per year based on the results of the               Investments, LLC v. Lee County case brought under
current year. No liability is recorded in the fund            the Bert J. Harris Private Property Rights Protection
statements, as any future commitment will be                  Act. Adar claims that the denial of its request for
budgeted and paid from the subsequent year’s                  rezoning from Agriculture to Residential Planned
budget. The minimum payment requirements for                  Development by the Lee County Board of County
inmate medical services are as follows:                       Commissioners has destroyed its property values
                                          Amount              and estimates the economic impact of the denial is
  Year ending September 30, 2010:         $7,200,000          approximately $8 million.

For the year ended September 30, 2009, the Sheriff            The County also received 19 notices of claim under
paid $8,249,000 for inmate medical services and               the Bert J. Harris Act, totaling $43.7 million in
$2,679,000 for food services at its detention facilities.     connection with Lee County’s adoption of new
                                                              Federal Flood Insurance Rate Maps.

Litigation                                                    Schwab Materials, Inc. filed suit for $18.5 million
                                                              under Chapter 70.001, Florida Statutes, arising from
                                                              the denial of a rezoning to permit limerock mining
T    he County is a defendant in various civil
     lawsuits in both state and federal courts on a
variety of issues. The County is not in a position at
                                                              adjacent to a residential community. Lee County has
                                                              denied liability. Discovery is ongoing and a trial on
this time to predict the outcome of the lawsuits or           liability will be scheduled in fiscal year 2010.
the exact amount of costs and/or potential recovery.
The County plans to contest these matters unless
settled. The County believes the outcome of these
lawsuits will not have a material effect on the
financial statements.




                                                             80
                                                                       Lee County, Florida
                                                    Required Supplementary Information
                                                                        September 30, 2009

                                                           Other Post Employment Benefits
                                                     Schedule of Funding Progress for Lee County
                                                                            (unaudited)



Group Health Program for Lee County Plan

                                            Actuarial Accrued                                                                                         UAAL as a
 Actuarial            Actuarial               Liability (AAL)-              Unfunded AAL               Funded                Covered                 Percentage of
                                                                2
 Valuation         Value of Assets         Projected Unit Credit                 (UAAL)                  Ratio                Payroll               Covered Payroll
   Date                  (a)                         (b)                           (b-a)                 (a/b)                  (c)                    ((b-a)/c)
 10/1/2008           $42,664,000                $157,913,000                  $115,249,000               27.0%            $164,065,000                    70.2%
             1
 10/1/2007                $0                    $148,478,000                  $148,478,000               0.0%             $152,809,000                    97.2%
 10/1/2006                $0                    $119,148,000                  $119,148,000               0.0%             $149,530,000                    79.7%

             1
                 Plan was modified to discontinue the fifty percent subsidy by the County on January 1, 2008. In June 2008, the County also implemented an early retirement
                 incentive program.
             2
                 The 10/1/20006 valuation was prepared using the Entry Age actuarial cost method.




Lee County Sheriff Health Care Plan

                                             Actuarial Accrued                                                                                        UAAL as a
 Actuarial           Actuarial                Liability (AAL)-              Unfunded AAL               Funded               Covered                  Percentage of
 Valuation         Value of Assets               Entry Age                     (UAAL)                   Ratio                Payroll                Covered Payroll
   Date                  (a)                         (b)                         (b-a)                  (a/b)                   (c)                    ((b-a)/c)
 7/1/2008                $0                    $170,587,000                  $170,587,000               0.0%               $75,186,000                  226.9%
             1
 7/1/2006                 $0                    $135,913,000                  $135,913,000               0.0%              $78,811,000                   172.5%
 7/1/2006                 $0                    $133,008,000                  $133,008,000               0.0%              $82,704,000                   160.8%

             1
                 Updated results of base evaluation for implementation of the early retirement incentive program in FYE 9/30/2008.




                                                                                    81
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                     82
Supplemental
  Financial
 Information




     83
     83
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                    84
General Fund




     85
     85
                                         Lee County, Florida
                               COMBINING SCHEDULE - BALANCE SHEET
                                          GENERAL FUND
                                       As of September 30, 2009
                                          (amounts expressed in thousands)


                                                  Board of
                                                   County          Clerk of        Property
                                                Commissioners    Circuit Court     Appraiser    Sheriff
ASSETS
Cash and equity in pooled cash and investments       $241,644           $1,308           $944      $13,022
Receivables (net)
 Accounts                                               3,983                 32                       171
 Accrued interest                                         511
Due from other funds                                   20,260                 62                          93
Due from other governments                              3,699                132
Inventory                                                 468                 16
Advances                                               18,251
 Total assets                                         288,816            1,550            944       13,286

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                         5,038                422           36        5,424
 Accrued liabilities                                      739                224          199        2,908
 Due to other funds                                       707                137          577        4,954
 Due to other governments                               2,653                215          132
 Deposits and overbids                                  1,710                369
 Unearned revenues                                                           134
 Other                                                     70
   Total liabilities                                   10,917            1,501            944       13,286
Fund Balances:
 Reserved for advances                                 18,251
 Reserved for inventory                                   468
 Unreserved, designated for:
   Next fiscal year's expenditures                     14,870
   Unfunded other post employment
     benefits                                          25,000
   Roads revolving loan program                         9,821
   Road construction grants                             1,700
   Economic incentives                                    805
   Economic development                                23,350
   Community Corrections Facility                      10,000
 Unreserved, undesignated                             173,634               49
   Total fund balances                                277,899               49              0            0
    Total liabilities and fund balances              $288,816           $1,550           $944      $13,286




See accompanying independent auditors' report.                                                  (continued)




                                                           86
                                         Lee County, Florida
                               COMBINING SCHEDULE - BALANCE SHEET
                                          GENERAL FUND
                                       As of September 30, 2009
                                          (amounts expressed in thousands)



                                                  Supervisor         Tax
                                                  of Elections     Collector       Eliminations    Total
ASSETS
Cash and equity in pooled cash and investments            $697         $18,482                     $276,097
Receivables (net)
 Accounts                                                                      2                      4,188
 Accrued interest                                                                                       511
Due from other funds                                                         24        ($19,410)      1,029
Due from other governments                                                    6                       3,837
Inventory                                                                                               484
Advances                                                                                             18,251
 Total assets                                                697        18,514          (19,410)    304,397

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                               63           391                       11,374
 Accrued liabilities                                          33           311                        4,414
 Due to other funds                                          351        15,552          (19,410)      2,868
 Due to other governments                                                2,260                        5,260
 Deposits and overbids                                                                                2,079
 Unearned revenues                                                                                      134
 Other                                                                                                   70
   Total liabilities                                         447        18,514          (19,410)     26,199
Fund Balances:
 Reserved for advances                                                                               18,251
 Reserved for inventory                                                                                 468
 Unreserved, designated for:
   Next fiscal year's expenditues                                                                    14,870
   Unfunded other post employment
     benefits                                                                                        25,000
   Roads revolving loan program                                                                       9,821
   Road construction grants                                                                           1,700
   Economic incentives                                                                                  805
   Economic development                                                                              23,350
   Community Corrections Facility                                                                    10,000
 Unreserved, undesignated                                  250                                      173,933
   Total fund balances                                     250               0                0     278,198
    Total liabilities and fund balances                   $697         $18,514         ($19,410)   $304,397




                                                        87
                                          Lee County, Florida
                         COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
                                AND CHANGES IN FUND BALANCES
                                           GENERAL FUND
                                 For the Year Ended September 30, 2009
                                      (amounts expressed in thousands)



                                      Board of
                                       County            Clerk of        Property
                                    Commissioners      Circuit Court     Appraiser       Sheriff
REVENUES
 Taxes                                    $306,254
 Licenses and permits                          123
 Intergovernmental                          46,372              $657         $1,352
 Charges for services                       34,490             4,193            301
 Fines and forfeitures                         189
 Miscellaneous                              16,320               232             78          $1,417
    Total revenues                         403,748             5,082          1,731           1,417
EXPENDITURES
 Current
  General government                        89,891           12,835           9,910           6,781
  Public safety                             57,686                                          146,263
  Physical environment                       8,462
  Transportation                             3,170
  Economic environment                       5,572
  Human services                            18,492
  Culture and recreation                    14,890
 Capital outlay
  General government                         1,101               30             107
  Public safety                                926                                             4,188
  Physical environment                          37
  Economic environment                          11
  Human services                                 5
  Culture and recreation                         210
 Debt service
  Interest and fiscal charges                    7
   Total expenditures                      200,460           12,865          10,017         157,232
Excess (deficiencies) of revenues
 over (under) expenditures                 203,288            (7,783)         (8,286)       (155,815)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                               30,111             7,877          8,863         160,673
 Transfers out                            (230,536)              (45)          (577)         (4,858)
   Total other financing sources
   and (uses)                             (200,425)            7,832          8,286         155,815
Net change in fund balances                  2,863               49                  0              0
Fund balances - beginning                  275,036                 0                 0              0
Fund balances - ending                    $277,899              $49              $0                $0



See accompanying independent auditors' report.                                           (continued)




                                                       88
                                          Lee County, Florida
                         COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
                                AND CHANGES IN FUND BALANCES
                                           GENERAL FUND
                                 For the Year Ended September 30, 2009
                                    (amounts expressed in thousands)




                                    Supervisor            Tax
                                    of Elections        Collector       Eliminations    Total
REVENUES
 Taxes                                                                                   $306,254
 Licenses and permits                                                                         123
 Intergovernmental                           $22                                           48,403
 Charges for services                         28           $32,836          ($17,642)      54,206
 Fines and forfeitures                                                                        189
 Miscellaneous                                 3            (1,210)                        16,840
    Total revenues                            53            31,626           (17,642)     426,015
EXPENDITURES
 Current
  General government                       4,682            17,022           (17,642)     123,479
  Public safety                                                                           203,949
  Physical environment                                                                      8,462
  Transportation                                                                            3,170
  Economic environment                                                                      5,572
  Human services                                                                           18,492
  Culture and recreation                                                                   14,890
 Capital outlay
  General government                                           149                          1,387
  Public safety                                                                             5,114
  Physical environment                                                                         37
  Economic environment                                                                         11
  Human services                                                                                5
  Culture and recreation                                                                      210
 Debt service
  Interest and fiscal charges                                                                   7
   Total expenditures                      4,682            17,171           (17,642)     384,785
Excess (deficiencies) of revenues
 over (under) expenditures                (4,629)           14,455                 0       41,230
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                              5,230                            (199,824)      12,930
 Transfers out                              (351)           (14,455)         199,824      (50,998)
   Total other financing sources
   and (uses)                              4,879            (14,455)               0      (38,068)
Net change in fund balances                  250                    0              0        3,162
Fund balances - beginning                      0                    0              0      275,036
Fund balances - ending                      $250                $0                $0     $278,198




                                                   89
                                                 Lee County, Florida
                          COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                         IN FUND BALANCES - BUDGET (Non - GAAP Budgetary Basis) AND ACTUAL
                                                  GENERAL FUND
                                        For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)

                                               Non - GAAP
                                             Board of County              Non - GAAP                 Non - GAAP
                                              Commissioners           Clerk of Circuit Court      Property Appraiser
                                            Final                      Final                      Final
                                           Budget       Actual        Budget         Actual      Budget       Actual
REVENUES
 Taxes                                     $298,128      $306,254
 Licenses and permits                           258           123
 Intergovernmental                           81,200        46,372         $666           $657      $1,483        $1,352
 Charges for services                        23,958        26,186        4,155          4,193                        40
 Fines and forfeitures                          503           189
 Miscellaneous                               13,966        15,756          246            239                        78
  Total revenues                            418,013       394,880        5,067          5,089       1,483         1,470

EXPENDITURES
 Current
  General government                         99,493        88,846       12,913        12,823       10,119         9,649
  Public safety                              55,478        48,441
  Physical environment                       13,735         8,450
  Transportation                              5,139         3,170
  Economic environment                       26,391         5,568
  Human services                             19,773        18,491
  Culture and recreation                     19,628        14,888
 Capital outlay
  General government                                95      1,101           31            30         227           107
  Public safety                                  1,726        926
  Physical environment                              11         37
  Economic environment                               6         11
  Human services                                                5
  Culture and recreation                                      210
 Debt service
  Interest and fiscal charges                     7             7
   Total expenditures                       241,482       190,151       12,944        12,853       10,346         9,756

   Excess (deficiencies) of revenues
    over (under) expenditures               176,531       204,729       (7,877)        (7,764)     (8,863)       (8,286)

OTHER FINANCING SOURCES (USES)
 Transfers in                                 30,500       36,156        7,877          7,877       8,863         8,863
 Transfers out                              (230,682)    (230,536)                        (45)                     (577)
  Total other financing sources (uses)      (200,182)    (194,380)       7,877          7,832       8,863         8,286

  Excess (deficiencies) of revenues and
   other financing sources over (under)
   expenditures and other financing uses     (23,651)      10,349            0            68            0              0

Fund balances - beginning                   274,679       247,878

Fund balances - ending                     $251,028      $258,227           $0           $68          $0             $0

See accompanying independent auditors' report.                                                               (continued)




                                                                 90
                                                 Lee County, Florida
                          COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                         IN FUND BALANCES - BUDGET (Non - GAAP Budgetary Basis) AND ACTUAL
                                                  GENERAL FUND
                                        For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)


                                                                                Supervisor
                                                    Sheriff                     of Elections             Tax Collector
                                            Final                           Final                     Final
                                           Budget             Actual       Budget         Actual     Budget        Actual
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                                            $22
 Charges for services                                                                          28     $38,032       $32,836
 Fines and forfeitures
 Miscellaneous                                                 $1,417                           3         744        (1,210)
  Total revenues                                    0           1,417             0            53      38,776        31,626

EXPENDITURES
 Current
  General government                        $6,080              6,781        $5,168         4,682      18,517        17,022
  Public safety                            151,532            146,263
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government                                                             62                      155           149
  Public safety                               4,146              4,188
  Physical environment
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Interest and fiscal charges
   Total expenditures                      161,758            157,232         5,230         4,682      18,672        17,171

   Excess (deficiencies) of revenues
    over (under) expenditures              (161,758)          (155,815)      (5,230)       (4,629)     20,104        14,455

OTHER FINANCING SOURCES (USES)
 Transfers in                              161,758            160,673         5,230         5,230
 Transfers out                                                 (4,858)                       (351)    (20,104)      (14,455)
  Total other financing sources (uses)     161,758            155,815         5,230         4,879     (20,104)      (14,455)

  Excess (deficiencies) of revenues and
   other financing sources over (under)
   expenditures and other financing uses            0                  0          0           250           0               0

Fund balances - beginning

Fund balances - ending                           $0                 $0           $0          $250          $0            $0

                                                                                                                 (continued)




                                                                   91
                                         Lee County, Florida
                  COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                 IN FUND BALANCES - BUDGET (Non - GAAP Budgetary Basis) AND ACTUAL
                                          GENERAL FUND
                                For the Year Ended September 30, 2009
                                   (amounts expressed in thousands)

                                                                                        Total
                                                                                                   Variance with
                                               Eliminations                                         Final Budget
                                            Final                           Final                     Positive
                                           Budget        Actual            Budget      Actual        (Negative)
REVENUES
 Taxes                                                                     $298,128    $306,254         $8,126
 Licenses and permits                                                           258         123           (135)
 Intergovernmental                                                           83,349      48,403        (34,946)
 Charges for services                                   ($17,642)            66,145      45,641        (20,504)
 Fines and forfeitures                                                          503         189           (314)
 Miscellaneous                                                               14,956      16,283          1,327
  Total revenues                                $0       (17,642)           463,339     416,893        (46,446)

EXPENDITURES
 Current
  General government                                     (17,642)           152,290     122,161         30,129
  Public safety                                                             207,010     194,704         12,306
  Physical environment                                                       13,735       8,450          5,285
  Transportation                                                              5,139       3,170          1,969
  Economic environment                                                       26,391       5,568         20,823
  Human services                                                             19,773      18,491          1,282
  Culture and recreation                                                     19,628      14,888          4,740
 Capital outlay
  General government                                                            570       1,387           (817)
  Public safety                                                               5,872       5,114            758
  Physical environment                                                           11          37            (26)
  Economic environment                                                            6          11             (5)
  Human services                                                                  -           5             (5)
  Culture and recreation                                                          -         210           (210)
 Debt service
  Interest and fiscal charges                                                     7           7              -
   Total expenditures                             0      (17,642)           450,432     374,203         76,229

   Excess (deficiencies) of revenues
    over (under) expenditures                     0               0          12,907      42,690         29,783

OTHER FINANCING SOURCES (USES)
 Transfers in                                           (199,824)           214,228      18,975       (195,253)
 Transfers out                                           199,824           (250,786)    (50,998)       199,788
  Total other financing sources (uses)            0            0            (36,558)    (32,023)         4,535

  Excess (deficiencies) of revenues and
   other financing sources over (under)
   expenditures and other financing uses          0               0         (23,651)     10,667         34,318

Fund balances - beginning                                                   274,679     247,878        (26,801)

Fund balances - ending                          $0            $0           $251,028    $258,545         $7,517




                                                                      92
   Major
Governmental
   Funds




     93
     93
                              Lee County, Florida
  SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL WITH RECONCILIATION TO GAAP
                           CAPITAL IMPROVEMENT
                     For the Year Ended September 30, 2009
                                 (amounts expressed in thousands)
                                                                                 Variance with
                                                                                 Final Budget
                                                    Final                          Positive
                                                   Budget           Actual        (Negative)
  REVENUES
  Taxes                                              $40,168         $40,681              $513
  Licenses and permits                                   300             353                53
  Intergovernmental                                   15,581           8,424            (7,157)
  Charges for services                                    77             213               136
  Miscellaneous                                        3,817           5,047             1,230
      Total revenues                                  59,943          54,718            (5,225)

  EXPENDITURES
  Current
   General government                                  1,360           1,614             (254)
   Physical environment                                4,518           1,316            3,202
   Culture and recreation                             13,772           5,018            8,754
  Capital Outlay
   General government                                121,938          79,865           42,073
   Physical environment                               28,429           6,433           21,996
   Transportation                                     16,021             933           15,088
   Culture and recreation                             83,201           6,947           76,254
  Debt Service
   Interest and fiscal charges
      Total expenditures                             269,239         102,126          167,113
  Excess (deficiencies) of revenues
   over (under) expenditures                        (209,296)         (47,408)        161,888

  OTHER FINANCING SOURCES
  AND (USES)
  Transfers in                                        87,822          87,975              153
  Transfers out                                       (7,271)         (7,021)             250
   Total other financing sources and (uses)           80,551          80,954              403
  Net change in fund balance                        (128,745)         33,546          162,291
  Fund balance - beginning                           191,589         169,989           (21,600)
  Fund balance - ending                              $62,844        $203,535         $140,691

  RECONCILIATION OF BUDGETARY BASIS TO GAAP
   Net change in fund balance, budgetary basis                       $33,546
      Add: Interfund loan                                                600
           Fair market value adjustment                                  257
           Southwest Florida Water Management Grant                        3
      Less: Prepaid invoices                                              (2)
   Net change in fund balance                                        $34,404

  See accompanying independent auditors' report.




                                                     94
 Non-Major
Governmental
   Funds




     95
     95
                            Special Revenue Funds

S   pecial revenue funds are used to account for proceeds of specific revenue sources, other than
    expendable trusts, debt service, or capital projects that are legally restricted to expenditures
for specific purposes.

Municipal Service Benefit Unit Districts- To account for revenues and expenditures to be used
for costs incurred on behalf of the special improvement districts, such as lighting, fire hydrants,
and street paving.

Special Assessment Districts- To account for special assessments collected within certain
unincorporated areas of the County to provide improvements (lighting, roads, etc.).

Law Enforcement Trust- To account for the monies held in trust by Lee County for the cost of
protracted or complex investigations in the form of technical equipment, expertise, or other law
enforcement purposes as the Board deems appropriate which are not normal operating needs of
the law enforcement agency.

Hickey Creek Mitigation Trust- To account for revenues and expenditures from agreements
between the County, Florida Communities Trust, and the Florida Fish and Wildlife Commission
to purchase and operate the Hickey Creek Mitigation Park.

Special Revenue Projects- To account for revenues that are restricted for specific expenditures or
projects.

State Housing Incentives Partnership Program (SHIP)- To account for SHIP grants.

Hurricane Housing Recovery Plan- To account for one-time disaster recovery funds from the
State of Florida that are used for the housing needs in the community that were impacted by the
2004 hurricane season.

Human Services Grants- To account for grant monies received to fund various Human Services
projects.

Surface Water Management- To account for revenues and expenditures used for canal and
pipe/ditch maintenance operations, and engineering and project management services for capital
improvement projects.

E 9-1-1- To account for revenues and expenditures to be used for the acquisition, development,
and operation of the E 9 - 1 - 1 emergency telephone system for Lee County.

Transportation Trust- To account for gas taxes distributed by the State of Florida designated for
the construction and operating maintenance of County roads.

All Hazards Protection- To account for revenues and expenditures to be used for the
implementation of a hazardous preparedness, response, and recovery program.

Impact Fees- Community Parks- To account for revenues received from impact fees that are
restricted for use of capital improvements for designated community park districts.




                                                  96
                                                  96
                Special Revenue Funds (continued)
Impact Fees- Regional Parks- To account for revenues received from impact fees that are
restricted for use of capital improvements for County regional parks.

Impact Fees- Roads- To account for revenues received from impact fees that are restricted for use
of capital improvements to, and expansion of, transportation projects within designated road
network areas.

Impact Fees- EMS- To account for revenues received from impact fees that are restricted for the
purpose of providing advanced life support and related services within Lee County, except for
Lehigh Acres Fire Control and Rescue District.

Animal Trust Fund- To account for donations and expenditures used to improve the welfare of
animals served by Lee County Animal Services.

Court Administration- To account for the revenues and expenditures of the Twentieth Judicial
Circuit Court Administrator’s Office funded by Lee County.

Clerk of Circuit Court’s Special Revenue- To account for revenues and expenditures mandated
by Chapter 28.24(15)(d), Florida Statutes, to be held in trust by the Clerk and used exclusively for
equipment and maintenance of equipment, personnel training, and technical assistance in
modernizing the public records system of the office, and Chapter 28.24 (12)(e), Florida Statutes, to
provide Court Technology support as defined in Chapter 28.008(1)(f)(2) and (h), Florida Statutes.

Property Appraiser’s Special Revenues- To account for revenues used to operate the County’s
Geographical Information System (GIS).

Sheriff’s Special Revenues- To account for grant revenues to be used for law enforcement
purposes.


                               Debt Service Funds
D    ebt service funds are used to account for the accumulation of resources to be used for
     payment of governmental fund’s debt principal, interest, and related costs.

Local Option Gas Tax Revenue Bonds- To account for payment of the 1997 Bonds. Funding is
from local option gas tax revenue.

Certificates of Participation- To account for payment of the 1993 Certificates. Funding is from
non - ad valorem revenues and ad valorem tax revenues.

Road Improvement Revenue Bonds- To account for payment of the 2003 Bonds. Funding is from
the voted one-cent gas tax imposed by the County.

Tourist Development Tax Revenue Bonds- To account for payment of the 2004 Bonds. Funding is
from tourist development tax revenues and William Hammond Stadium rental revenue.

Commercial Paper Projects- To account for payment of variable rate loan obligations.




                                                 97
                                                 97
                    Debt Service Funds (continued)
Five Cent Local Option Gas Tax Revenue Bonds- To account for payment of the 2004 Bonds.
Funding is from the five-cent local option gas tax revenue.

Capital Revenue Bonds- To account for payment of the 1993B, 1997A, 1999A, 2000, 2003, 2004,
and 2006 Bonds. Funding is from ambulance service receipts, building and zoning permits and
fees, data processing fees, excess County Officer fees, franchise fees, guaranteed entitlement
funds, investment earnings, license fees, pledged gas taxes, and sales tax.

MSBU Projects Commercial Loan- To account for payment of the loan obligations for various
special improvement districts. Funding is from special assessment tax revenue.



                            Capital Projects Funds
C   apital projects funds are used to account for financial resources to be used for the acquisition,
    construction, or improvement of major capital facilities and infrastructure other than those
financed by proprietary funds.

Special Assessment Districts Construction- To account for the financial resources to be used for
the improvement projects (lighting, roads, etc.) in certain unincorporated areas of the County for
which a special assessment is collected.

Transportation Capital Improvements- To account for financial resources to be used for the
acquisition or construction of major transportation - related infrastructure.

Capital Revenue Bonds- Construction- To account for bond proceeds to be used to construct
various capital projects.

Library Construction Projects- To account for the financial resources to be used for the Library
construction projects.

MSBU Construction Projects- To account for financial resources to be used for improvement
projects in Municipal Service Benefit Units which are financed through special assessments.

All Hazards Protection Construction Projects- To account for the financial resources to be used
for the construction projects of the hazardous preparedness, response, and recovery program.

Impact Fees Community Parks Construction- To account for the financial resources for the
capital improvements from impact fees that are designated for community park districts.

Impact Fees Regional Parks Construction- To account for the financial resources for the capital
improvements from impact fees that are designated for County regional parks.

Impact Fees Road Construction- To account for the financial resources for the capital
improvements to, and expansion of, transportation projects from impact fees that are designated
within road network areas.

Impact Fees EMS Construction- To account for financial resources to be used for EMS capital
projects from impact fees related to designated areas within the County.




                                                   98
                                                   98
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                    Special Revenue Funds

                                                  Municipal                                         Hickey
                                                   Service          Special             Law         Creek
                                                 Benefit Unit     Assessment        Enforcement    Mitigation
                                                  Districts        Districts           Trust         Trust
ASSETS
Cash and equity in pooled cash and investments         $1,744           $6,943              $488          $436
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts
 Special assessments                                                     1,117
 Accrued interest                                           4              852                 2                1
Due from other funds                                       31                4               431
Due from other governments
Inventory
Advances                                                                    88
  Total assets                                          1,779            9,004               921           437

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            40                 124
 Accrued liabilities                                                            3                               1
 Due to other funds                                        12                   4
 Due to other governments                                                       1
 Deposits and overbids
 Unearned revenues
 Deferred revenues                                                            731
 Advances                                                  96
   Total liabilities                                      148                 863              0                1
Fund Balances:
 Reserved for:
   Advances                                                                    88
   Inventory
   Debt service
 Unreserved , designated for:
   Next fiscal year's expenditures                                             33
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                                1,631            8,020               921           436
   Capital projects funds
   Total fund balances                                  1,631            8,141               921           436
Total liabilities and fund balances                    $1,779           $9,004              $921          $437
See accompanying independent auditors' report.                                                     (continued)




                                                          99
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                      Special Revenue Funds

                                                                   State Housing
                                                   Special           Incentives       Human             Surface
                                                  Revenue           Partnership       Services           Water
                                                  Projects            Program          Grants         Management
ASSETS
Cash and equity in pooled cash and investments        $3,948             $6,615               $785          $2,891
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts
 Special assessments
 Accrued interest                                         7                   14                  2             4
Due from other funds                                    244                   17                                8
Due from other governments                              259                                    315
Inventory                                                                                                      28
Advances
  Total assets                                         4,458              6,646               1,102          2,931

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                         519                668                   78           123
 Accrued liabilities                                      8                                                    26
 Due to other funds                                      19                                    251             64
 Due to other governments                                 4                                                    12
 Deposits and overbids
 Unearned revenues                                      329
 Deferred revenues
 Advances
   Total liabilities                                    879                668                 329            225
Fund Balances:
 Reserved for:
  Advances
  Inventory                                                                                                    28
  Debt service
 Unreserved , designated for:
  Next fiscal year's expenditures                      2,469                                   290              2
  Debt service
 Unreserved , undesignated, reported in:
  Special revenue funds                                1,110              5,978                483           2,676
  Capital projects funds
  Total fund balances                                  3,579              5,978                773           2,706
Total liabilities and fund balances                   $4,458             $6,646           $1,102            $2,931
                                                                                                      (continued)




                                                             100
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                      Special Revenue Funds


                                                                                       All          Impact Fees-
                                                                  Transportation     Hazards        Community
                                                   E 9-1-1            Trust         Protection         Parks
ASSETS
Cash and equity in pooled cash and investments        $8,248            $3,561          $10,337           $3,855
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts                                                256                  14                               2
 Special assessments
 Accrued interest                                            17              7                 26             24
Due from other funds                                                        79                 49             20
Due from other governments                                                 911
Inventory                                                                2,619
Advances
  Total assets                                         8,521             7,191           10,412            3,901

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                          203             1,251                 20              2
 Accrued liabilities                                       5               187                  3
 Due to other funds                                        5               521                  2
 Due to other governments                                  3                76                  1
 Deposits and overbids
 Unearned revenues                                       106                  10
 Deferred revenues
 Advances
   Total liabilities                                     322             2,045                 26              2
Fund Balances:
 Reserved for:
   Advances
   Inventory                                                             2,619
   Debt service
 Unreserved , designated for:
   Next fiscal year's expenditures                                                            994
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                               8,199             2,527            9,392            3,899
   Capital projects funds
   Total fund balances                                 8,199              5,146          10,386            3,899
Total liabilities and fund balances                   $8,521            $7,191          $10,412           $3,901
                                                                                                    (continued)




                                                        101
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                    Special Revenue Funds


                                                 Impact Fees-
                                                   Regional      Impact Fees-      Impact Fees-     Animal
                                                    Parks          Roads              EMS         Trust Fund
ASSETS
Cash and equity in pooled cash and investments           $28           $8,534            $1,762         $432
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts                                                  2                  27             2
 Special assessments
 Accrued interest                                          1              118                3              1
Due from other funds                                                                        17
Due from other governments
Inventory
Advances
  Total assets                                            31            8,679             1,784          433

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            2
 Accrued liabilities                                                          12
 Due to other funds
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues
 Advances                                                              14,500
   Total liabilities                                       2           14,512                0              0
Fund Balances:
 Reserved for:
   Advances
   Inventory
   Debt service
 Unreserved , designated for:
   Next fiscal year's expenditures
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                                  29            (5,833)           1,784          433
   Capital projects funds
   Total fund balances                                    29           (5,833)            1,784          433
Total liabilities and fund balances                      $31           $8,679            $1,784         $433
                                                                                                  (continued)




                                                           102
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                     Special Revenue Funds
                                                                     Clerk of        Property
                                                                  Circuit Court's   Appraiser's      Sheriff's
                                                    Court             Special         Special        Special
                                                 Administration      Revenue         Revenues       Revenues
ASSETS
Cash and equity in pooled cash and investments          $8,119           $7,127              $268        $2,215
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts                                                   1                 33                           153
 Special assessments
 Accrued interest                                          13
Due from other funds                                      359                                               23
Due from other governments                                271                  3                           471
Inventory
Advances
  Total assets                                           8,763            7,163               268         2,862

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                           313               188                            137
 Accrued liabilities                                      188               192                30           82
 Due to other funds                                        46               396               159          603
 Due to other governments                                  75               164                              8
 Deposits and overbids                                                    1,193
 Unearned revenues                                                                                         453
 Deferred revenues
 Advances
   Total liabilities                                      622             2,133               189         1,283
Fund Balances:
 Reserved for:
   Advances
   Inventory
   Debt service
 Unreserved , designated for:
   Next fiscal year's expenditures                        119
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                                 8,022            5,030                79         1,579
   Capital projects funds
   Total fund balances                                   8,141            5,030                79         1,579
Total liabilities and fund balances                     $8,763           $7,163              $268        $2,862
                                                                                                    (continued)




                                                         103
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                       Debt Service Funds
                                                 Local Option                         Tourist        Five Cent
                                                   Gas Tax         Certificates     Development    Local Option
                                                   Revenue              of          Tax Revenue       Gas Tax
                                                    Bonds         Participation        Bonds      Revenue Bonds

ASSETS
Cash and equity in pooled cash and investments           $647                             $839
Cash and cash equivalents with fiscal agent             3,270           $1,294             713           $1,980
Receivables (net)
 Accounts
 Special assessments
 Accrued interest
Due from other funds
Due from other governments                                659
Inventory
Advances
  Total assets                                          4,576            1,294            1,552           1,980

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable
 Accrued liabilities
 Due to other funds                                                                          8
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues
 Advances
   Total liabilities                                        0                 0              8                0
Fund Balances:
 Reserved for:
   Advances
   Inventory
   Debt service                                         3,270            1,294            1,544           1,980
 Unreserved , designated for:
   Next fiscal year's expenditures
   Debt service                                         1,306
 Unreserved , undesignated, reported in:
   Special revenue funds
   Capital projects funds
   Total fund balances                                  4,576            1,294           1,544            1,980
Total liabilities and fund balances                    $4,576           $1,294          $1,552           $1,980

                                                                                                    (continued)




                                                          104
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                      Debt Service Funds                Capital Projects Funds
                                                                   MSBU              Special
                                                  Capital          Projects        Assessment       Transportation
                                                  Revenue        Commercial         Districts          Capital
                                                   Bonds            Loan           Construction     Improvements
ASSETS
Cash and equity in pooled cash and investments            $4               $529           $215             $58,611
Cash and cash equivalents with fiscal agent           17,024
Receivables (net)
 Accounts                                                                                                        40
 Special assessments                                                       5,399
 Accrued interest                                                              2                               129
Due from other funds                                                           1                             3,200
Due from other governments                                                                                   1,482
Inventory
Advances                                                                                                     5,821
  Total assets                                        17,028               5,931           215              69,283

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                                                             12               4,963
 Accrued liabilities                                                                                             5
 Due to other funds                                                                                            127
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues                                                         5,399
 Advances                                                                                                    3,250
   Total liabilities                                        0              5,399            12               8,345
Fund Balances:
 Reserved for:
   Advances                                                                                                  5,821
   Inventory
   Debt service                                       17,024                321
 Unreserved , designated for:
   Next fiscal year's expenditures                                                                          46,795
   Debt service                                             4               211
 Unreserved , undesignated, reported in:
   Special revenue funds
   Capital projects funds                                                                  203               8,322
   Total fund balances                                17,028              532              203              60,938
Total liabilities and fund balances                  $17,028           $5,931             $215             $69,283
                                                                                                      (continued)




                                                        105
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                                      Capital Projects Funds
                                                                  All Hazards     Impact Fees        Impact Fees
                                                   Library         Protection     Community           Regional
                                                 Construction     Construction       Parks              Parks
                                                   Projects         Projects      Construction       Construction
ASSETS
Cash and equity in pooled cash and investments        $12,155           $2,323           $8,776             $307
Cash and cash equivalents with fiscal agent
Receivables (net)
 Accounts
 Special assessments
 Accrued interest                                           1                                    1
Due from other funds
Due from other governments
Inventory
Advances
  Total assets                                         12,156            2,323            8,777               307

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                         2,474                                   96            165
 Accrued liabilities
 Due to other funds                                       114                                   20
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues
 Advances
   Total liabilities                                    2,588                 0                116            165
Fund Balances:
 Reserved for:
   Advances
   Inventory
   Debt service
 Unreserved , designated for:
   Next fiscal year's expenditures                      9,562            2,323            5,205               142
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds
   Capital projects funds                                   6                             3,456
   Total fund balances                                  9,568            2,323            8,661              142
Total liabilities and fund balances                   $12,156           $2,323           $8,777             $307
                                                                                                     (continued)




                                                            106
                                               Lee County, Florida
                                         COMBINING BALANCE SHEET
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                             As of September 30, 2009
                                           (amounts expressed in thousands)




                                                     Capital Projects Funds
                                                   Impact           Impact             Total
                                                    Fees             Fees            Non-Major
                                                   Roads             EMS            Governmental
                                                 Construction     Construction         Funds
ASSETS
Cash and equity in pooled cash and investments        $48,608                 $28        $211,378
Cash and cash equivalents with fiscal agent                                                24,281
Receivables (net)
 Accounts                                                                                     530
 Special assessments                                                                        6,516
 Accrued interest                                             7                             1,236
Due from other funds                                                                        4,483
Due from other governments                                                                  4,371
Inventory                                                                                   2,647
Advances                                                                                    5,909
  Total assets                                         48,615                  28         261,351

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                         8,172                              19,550
 Accrued liabilities                                                                          742
 Due to other funds                                          27                17           2,395
 Due to other governments                                                                     344
 Deposits and overbids                                                                      1,193
 Unearned revenues                                                                            898
 Deferred revenues                                                                          6,130
 Advances                                                                                  17,846
   Total liabilities                                    8,199                  17          49,098
Fund Balances:
 Reserved for:
   Advances                                                                                 5,909
   Inventory                                                                                2,647
   Debt service                                                                            25,433
 Unreserved , designated for:
   Next fiscal year's expenditures                     40,416                  11         108,361
   Debt service                                                                             1,521
 Unreserved , undesignated, reported in:
   Special revenue funds                                                                   56,395
   Capital projects funds                                                                  11,987
   Total fund balances                                 40,416                  11         212,253
Total liabilities and fund balances                   $48,615                 $28        $261,351




                                                       107
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                                     Special Revenue Funds
                                             Municipal                                                Hickey
                                              Service              Special            Law             Creek
                                            Benefit Unit         Assessment       Enforcement        Mitigation
                                             Districts            Districts          Trust             Trust
REVENUES
 Taxes                                            $2,725                $179
 Licenses and permits
 Intergovernmental
 Charges for services                                                    147
 Fines and forfeitures                                                                       $565
 Impact fees
 Special assessments                                                     607
 Miscellaneous                                        48                 285                   16             $7
  Total revenues                                   2,773               1,218                  581              7
EXPENDITURES
 Current
  General government                                  77                 468                                      6
  Public safety                                      755                                      178
  Physical environment                                                     1
  Transportation                                   2,513                 326
  Economic environment
  Human services
  Culture and recreation                                                                                     107
 Capital outlay
  General government
  Public safety
  Physical environment                                                   139
  Transportation                                                         562
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                               3,345               1,496                  178            113
Excess (deficiencies) of revenues
 over (under) expenditures                          (572)               (278)                 403           (106)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                         29                 207                   25
 Transfers out                                       (11)             (1,136)                (993)
 Debt issuance
  Total other financing sources (uses)                18                (929)                (968)             0
Net change in fund balances                         (554)             (1,207)             (565)             (106)
Fund balances - beginning                          2,185               9,348             1,486               542
Fund balances - ending                            $1,631              $8,141                 $921           $436
See accompanying independent auditor's report.                                                       (continued)

                                                           108
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                   Special Revenue Funds
                                                             State Housing       Hurricane
                                              Special          Incentives         Housing        Human
                                             Revenue          Partnership         Recovery       Services
                                             Projects           Program             Plan          Grants
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                               $3,143            $2,823                             $2,659
 Charges for services                               720                                                    3
 Fines and forfeitures                              232
 Impact fees
 Special assessments
 Miscellaneous                                       62                107               $4               13
  Total revenues                                  4,157              2,930                4            2,675
EXPENDITURES
 Current
  General government                                737                                                     6
  Public safety                                      60
  Physical environment                              897
  Transportation
  Economic environment                              206              3,117               461           2,599
  Human services                                  2,401                                                   60
  Culture and recreation
 Capital outlay
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment                                                                                  111
  Human services                                        11
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                              4,312              3,117              461            2,776
Excess (deficiencies) of revenues
 over (under) expenditures                         (155)             (187)             (457)            (101)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in
 Transfers out
 Debt issuance
  Total other financing sources (uses)                   0               0                   0              0
Net change in fund balances                        (155)              (187)            (457)            (101)
Fund balances - beginning                         3,734              6,165              457              874
Fund balances - ending                           $3,579            $5,978                $0            $773
                                                                                                 (continued)

                                                     109
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                   Special Revenue Funds

                                             Surface                                                 All
                                              Water                             Transportation    Hazards
                                           Management             E 9-1-1            Trust        Protection

REVENUES
 Taxes                                                                                  $3,056         $3,949
 Licenses and permits                               $22                                     37
 Intergovernmental                                                      $239             7,739            182
 Charges for services                               100                3,102             1,185
 Fines and forfeitures
 Impact fees                                                                                               12
 Special assessments
 Miscellaneous                                       41                  112             1,851            181
  Total revenues                                    163                3,453            13,868          4,324
EXPENDITURES
 Current
  General government                                223                   37             2,860            485
  Public safety                                                        2,641                            1,252
  Physical environment                            4,439
  Transportation                                                                        31,298
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety                                                         501                               117
  Physical environment                                 1
  Transportation                                                                           408
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                              4,663                3,179            34,566          1,854
Excess (deficiencies) of revenues
 over (under) expenditures                        (4,500)               274            (20,698)         2,470
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                     5,000                                 18,166              41
 Transfers out                                      (11)                                                (2,322)
 Debt issuance
  Total other financing sources (uses)            4,989                     0           18,166          (2,281)
Net change in fund balances                         489                  274            (2,532)           189
Fund balances - beginning                         2,217                7,925             7,678         10,197
Fund balances - ending                           $2,706              $8,199             $5,146        $10,386
                                                                                                  (continued)

                                                            110
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                      Special Revenue Funds

                                           Impact Fees -         Impact Fees -
                                            Community              Regional       Impact Fees-      Impact Fees -
                                              Parks                 Parks           Roads              EMS
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental
 Charges for services
 Fines and forfeitures
 Impact fees                                       $318                  $299           $6,243              $131
 Special assessments
 Miscellaneous                                      193                    28            1,889                28
  Total revenues                                    511                   327            8,132               159
EXPENDITURES
 Current
  General government                                 32                    32            1,804                21
  Public safety                                                                                              100
  Physical environment
  Transportation                                                                              418
  Economic environment
  Human services
  Culture and recreation                             50                    41
 Capital outlay
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                                 82                    73            2,222               121
Excess (deficiencies) of revenues
 over (under) expenditures                          429                   254            5,910                38
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in
 Transfers out                                    (9,195)                (767)          (88,743)              (20)
 Debt issuance
  Total other financing sources (uses)            (9,195)                (767)          (88,743)              (20)
Net change in fund balances                       (8,766)                (513)          (82,833)               18
Fund balances - beginning                         12,665                  542            77,000             1,766
Fund balances - ending                            $3,899                  $29           $(5,833)           $1,784
                                                                                                     (continued)


                                                           111
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                 Special Revenue Funds
                                                                                 Clerk of        Property
                                                                              Circuit Court's   Appraiser's
                                              Animal          Court              Special          Special
                                            Trust Fund     Administration        Revenue         Revenues
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                                    $2,979
 Charges for services                                $5            $4,706             12,429             $2
 Fines and forfeitures                                                  5
 Impact fees
 Special assessments
 Miscellaneous                                       70               675                 38
  Total revenues                                     75             5,386             15,446                  2
EXPENDITURES
 Current
  General government                                               16,186             15,072           1,781
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services                                     34
  Culture and recreation
 Capital outlay
  General government                                                  935               390              18
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                                 34            17,121             15,462           1,799
Excess (deficiencies) of revenues
 over (under) expenditures                           41            (11,735)              (16)         (1,797)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                                       7,533                              1,958
 Transfers out                                                                                          (159)
 Debt issuance
  Total other financing sources (uses)                0             7,533                  0           1,799

Net change in fund balances                          41            (4,202)               (16)             2
Fund balances - beginning                           392            12,343              5,046             77
Fund balances - ending                             $433            $8,141             $5,030            $79
                                                                                                 (continued)


                                                          112
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)
                                          Special Revenue
                                               Funds                          Debt Service Funds
                                                             Local Option                             Road
                                              Sheriff's        Gas Tax            Certificates     Improvement
                                              Special         Revenue                  of            Revenue
                                             Revenues           Bonds            Participation        Bonds

REVENUES
 Taxes                                                             $8,420
 Licenses and permits
 Intergovernmental                                $3,538
 Charges for services                              4,636
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                       250               10                                  $1
  Total revenues                                   8,424            8,430                    0              1
EXPENDITURES
 Current
  General government
  Public safety                                    8,741
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety                                    1,230
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement                                              3,040              $1,105            1,065
  Interest and fiscal charges                                         236                 287               16
  Total expenditures                               9,971            3,276               1,392            1,081
Excess (deficiencies) of revenues
 over (under) expenditures                        (1,547)           5,154               (1,392)         (1,080)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                        927               820               1,424
 Transfers out                                       (25)           (5,898)                               (768)
 Debt issuance
  Total other financing sources (uses)               902            (5,078)              1,424            (768)
Net change in fund balances                         (645)              76                   32          (1,848)
Fund balances - beginning                          2,224            4,500                1,262           1,848
Fund balances - ending                            $1,579           $4,576              $1,294              $0
                                                                                                   (continued)

                                                     113
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                       Debt Service Funds
                                             Tourist                               Five Cent
                                           Development            Commercial     Local Option       Capital
                                           Tax Revenue               Paper          Gas Tax         Revenue
                                              Bonds                 Projects     Revenue Bonds       Bonds
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental
 Charges for services                              $300
 Fines and forfeitures
 Impact fees
 Special assessments                                                    $168
 Miscellaneous                                       17                                       $3           $34
  Total revenues                                    317                  168                   3            34
EXPENDITURES
 Current
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement                              580                  640                1,475        11,775
  Interest and fiscal charges                       248                                       958         9,683
  Total expenditures                                828                  640                2,433        21,458
Excess (deficiencies) of revenues
 over (under) expenditures                          (511)                (472)          (2,430)         (21,424)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                      4,058                 472                2,446        21,689
 Transfers out                                    (6,151)
 Debt issuance
  Total other financing sources (uses)            (2,093)                472                2,446        21,689
Net change in fund balances                       (2,604)                  0                   16          265
Fund balances - beginning                          4,148                   0                1,964       16,763
Fund balances - ending                            $1,544                  $0            $1,980         $17,028
                                                                                                    (continued)


                                                            114
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)
                                           Debt Service
                                             Funds                           Capital Projects Funds
                                              MSBU             Special                                  Capital
                                             Projects        Assessment        Transportation          Revenue
                                           Commercial          Districts           Capital              Bonds -
                                              Loan           Construction      Improvements           Construction

REVENUES
 Taxes                                                                                  $6,299
 Licenses and permits
 Intergovernmental                                                                       1,564
 Charges for services
 Fines and forfeitures
 Impact fees
 Special assessments                               $740
 Miscellaneous                                        1                $1                1,599                 $18
  Total revenues                                    741                 1                9,462                  18
EXPENDITURES
 Current
  General government
  Public safety
  Physical environment
  Transportation                                                                        12,273
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government                                                                                         2,044
  Public safety
  Physical environment                                               190
  Transportation                                                                        20,375
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement                              603
  Interest and fiscal charges                       247
  Total expenditures                                850              190                32,648               2,044
Excess (deficiencies) of revenues
 over (under) expenditures                          (109)            (189)             (23,186)              (2,026)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                        125              392               13,802
 Transfers out                                      (653)                               (3,076)             (4,498)
 Debt issuance                                       456
  Total other financing sources (uses)               (72)             392               10,726              (4,498)
Net change in fund balances                         (181)             203              (12,460)             (6,524)
Fund balances - beginning                            713                0               73,398               6,524
Fund balances - ending                             $532              $203              $60,938                  $0
                                                                                                       (continued)


                                                    115
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)

                                                                      Capital Projects Funds
                                                                                     All Hazards   Impact Fees
                                             Library                MSBU              Protection   Community
                                           Construction           Construction      Construction      Parks
                                             Projects               Projects            Projects   Construction
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental
 Charges for services
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                       $7                     $1                $1             $5
  Total revenues                                      7                      1                 1              5
EXPENDITURES
 Current
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation                           1,383
 Capital outlay
  General government
  Public safety
  Physical environment                                                     628
  Transportation
  Economic environment
  Human services
  Culture and recreation                           8,254                                                    529
 Debt service
  Principal retirement
  Interest and fiscal charges                                               11
  Total expenditures                               9,637                   639                 0            529
Excess (deficiencies) of revenues
 over (under) expenditures                        (9,630)                 (638)                1           (524)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                     19,198                                   2,322          9,185
 Transfers out                                                              (2)
 Debt issuance
  Total other financing sources (uses)            19,198                    (2)            2,322          9,185
Net change in fund balances                        9,568                  (640)            2,323          8,661
Fund balances - beginning                              0                   640                 0              0
Fund balances - ending                            $9,568                    $0            $2,323         $8,661
                                                                                                    (continued)

                                                            116
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)


                                                        Capital Projects Funds
                                           Impact Fees         Impact            Impact           Total
                                            Regional            Fees              Fees          Non - major
                                              Parks            Roads              EMS          Governmental
                                           Construction    Construction        Construction       Funds
REVENUES
 Taxes                                                                                              $24,628
 Licenses and permits                                                                                    59
 Intergovernmental                                                                                   24,866
 Charges for services                                                                                27,335
 Fines and forfeitures                                                                                  802
 Impact fees                                                                                          7,003
 Special assessments                                                                                  1,515
 Miscellaneous                                      $22               $27                             7,645
  Total revenues                                     22                27                 0          93,853
EXPENDITURES
 Current
  General government                                                                                 39,827
  Public safety                                                                                      13,727
  Physical environment                                                                                5,337
  Transportation                                                    1,461                            48,289
  Economic environment                                                                                6,383
  Human services                                                                                      2,495
  Culture and recreation                                                                              1,581
 Capital outlay
  General government                                                                     $9           3,396
  Public safety                                                                                       1,848
  Physical environment                                                                                  958
  Transportation                                                   42,697                            64,042
  Economic environment                                                                                  111
  Human services                                                                                         11
  Culture and recreation                            647                                               9,430
 Debt service
  Principal retirement                                                                               20,283
  Interest and fiscal charges                                                                        11,686
  Total expenditures                                647            44,158                 9         229,404
Excess (deficiencies) of revenues
 over (under) expenditures                          (625)          (44,131)              (9)       (135,551)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                       767            84,547                20         195,153
 Transfers out                                                                                     (124,428)
 Debt issuance                                                                                          456
  Total other financing sources (uses)              767            84,547                20          71,181
Net change in fund balances                         142            40,416               11          (64,370)
Fund balances - beginning                             0                 0                0          276,623
Fund balances - ending                             $142           $40,416              $11         $212,253



                                                     117
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                 Non - GAAP
                                                  Municipal               Non - GAAP             Non - GAAP
                                                   Service                  Special                  Law
                                                 Benefit Unit             Assessment             Enforcement
                                                  Districts                Districts                Trust
                                              Final                      Final                  Final
                                             Budget       Actual        Budget     Actual      Budget       Actual
REVENUES
 Taxes                                         $2,788      $2,725          $175       $179
 Licenses and permits
 Intergovernmental
 Charges for services                                                        127       147
 Fines and forfeitures                                                                                         $565
 Impact fees
 Special assessments                                                         372       621
 Miscellaneous                                      27         45            147       179         $23            15
    Total revenues                               2,815      2,770            821     1,126          23           580
EXPENDITURES
 Current
  General government                               79            77          505       468
  Public safety                                   755           755                                179           179
  Physical environment                                                         8         1
  Transportation                                 3,033      2,513            560       326
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government                                                         430
  Public safety
  Physical environment                                                      200        139
  Transportation                                  213                     4,228        562
  Economic environment
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
     Total expenditures                          4,080      3,345         5,931      1,496         179           179
Excess (deficiencies) of revenues
 over (under) expenditures                     (1,265)          (575)    (5,110)       (370)      (156)          401
OTHER FINANCING SOURCES (USES)
 Transfers in                                        1            29        772        760                        25
 Transfers out                                     (10)          (11)    (1,696)    (1,689)       (997)         (993)
   Total other financing sources (uses)             (9)           18       (924)      (929)       (997)         (968)
Net change in fund balances                    (1,274)          (557)    (6,034)    (1,299)     (1,153)         (567)
Fund balances - beginning                        2,280      2,193         8,206      9,208       1,486         1,487
Fund balances - ending                         $1,006      $1,636        $2,172     $7,909        $333         $920
See accompanying independent auditors' report.                                                            (continued)

                                                            118
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                Non - GAAP
                                                  Hickey                 Non - GAAP                  Non - GAAP
                                                  Creek                    Special                  State Housing
                                                 Mitigation               Revenue               Incentives Partnership
                                                   Trust                   Projects                    Program
                                              Final                    Final                      Final
                                             Budget      Actual       Budget       Actual        Budget          Actual
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                      $4,078      $3,143         $2,631         $2,823
 Charges for services                                                      700         720
 Fines and forfeitures                                                     200         233
 Impact fees
 Special assessments
 Miscellaneous                                   $12            $6         595          57            720             97
    Total revenues                                12             6       5,573       4,153          3,351          2,920
EXPENDITURES
 Current
  General government                                6             6      2,624         737              17
  Public safety                                                             77          60
  Physical environment                                                     945         897
  Transportation
  Economic environment                                                     192         206          8,269          3,117
  Human services                                                         4,275       2,401
  Culture and recreation                         147           106
 Capital outlay
  General government
  Public safety                                                               98
  Physical environment
  Transportation
  Economic environment
  Human services                                                                        11
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                            153           112       8,211       4,312          8,286          3,117
Excess (deficiencies) of revenues
 over (under) expenditures                       (141)        (106)     (2,638)       (159)        (4,935)          (197)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                769
 Transfers out
   Total other financing sources (uses)             0             0          769            0             0               0
Net change in fund balances                      (141)        (106)     (1,869)       (159)        (4,935)          (197)
Fund balances - beginning                        542           549       3,734      11,906          6,165            970
Fund balances - ending                          $401        $443        $1,865     $11,747         $1,230           $773
                                                                                                              (continued)

                                                         119
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                               Non - GAAP                Non - GAAP                Non - GAAP
                                                Hurricane                  Human                     Surface
                                             Housing Recovery             Services                   Water
                                                   Plan                    Grants                  Management
                                              Final                    Final                      Final
                                             Budget      Actual       Budget        Actual       Budget        Actual
REVENUES
 Taxes
 Licenses and permits                                                                                              $22
 Intergovernmental                                                      $6,713       $2,659
 Charges for services                                                                     3         $100           100
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                   $75          $3             3           12          223            38
    Total revenues                                75           3         6,716        2,674          323           160
EXPENDITURES
 Current
  General government                                                           6             6       224           224
  Public safety
  Physical environment                                                                             4,760         4,440
  Transportation
  Economic environment                           505         461         6,415        2,599
  Human services                                                           124           60
  Culture and recreation
 Capital outlay
  General government
  Public safety
  Physical environment                                                                                17                1
  Transportation
  Economic environment                                                       178        111
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                            505         461         6,723        2,776        5,001         4,665

Excess (deficiencies) of revenues
 over (under) expenditures                       (430)      (458)             (7)      (102)      (4,678)        (4,505)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                                      5,000         5,000
 Transfers out                                                    0                                  (11)          (11)
   Total other financing sources (uses)             0             0            0             0     4,989         4,989
Net change in fund balances                      (430)      (458)             (7)      (102)         311           484
Fund balances - beginning                        457      (2,355)            874        874        2,207         2,217
Fund balances - ending                            $27    ($2,813)            $867      $772       $2,518        $2,701
                                                                                                            (continued)

                                                           120
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)


                                                                                                  Non - GAAP
                                                                          Non - GAAP                  All
                                                 Non - GAAP              Transportation             Hazards
                                                  E9-1-1                     Trust                 Protection
                                               Final                    Final                    Final
                                              Budget      Actual       Budget        Actual     Budget       Actual
REVENUES
 Taxes                                                                                $3,056     $3,901        $3,950
 Licenses and permits                                                      $235           37
 Intergovernmental                                $345       $239         7,611        7,739         10           182
 Charges for services                            3,060      3,102           585        1,185
 Fines and forfeitures
 Impact fees                                                                                         81            12
 Special assessments
 Miscellaneous                                     183        101         2,707        1,717        203           165
    Total revenues                               3,588      3,442        11,138       13,734       4,195        4,309

EXPENDITURES
 Current
  General government                                37         37         3,433        2,860      1,608           485
  Public safety                                  2,151      2,641                                 1,482         1,252
  Physical environment
  Transportation                                                         32,615       32,026
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety                                  1,348        501                                   105           117
  Physical environment
  Transportation                                                               321       408
  Economic environment
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                            3,536      3,179        36,369       35,294      3,195         1,854
Excess (deficiencies) of revenues
 over (under) expenditures                         52         263        (25,231)    (21,560)     1,000        2,455

OTHER FINANCING SOURCES (USES)
 Transfers in                                    6,036      6,036        19,787       18,166                       41
 Transfers out                                  (6,036)    (6,036)                                (2,322)      (2,322)
    Total other financing sources (uses)            0           0        19,787       18,166      (2,322)      (2,281)
Net change in fund balances                        52         263         (5,444)     (3,394)     (1,322)         174
Fund balances - beginning                        7,925      7,939         5,840        7,345     10,197        10,215
Fund balances - ending                          $7,977     $8,202             $396    $3,951     $8,875       $10,389

                                                                                                          (continued)

                                                            121
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)


                                               Non - GAAP               Non - GAAP
                                               Impact Fees -            Impact Fees -           Non - GAAP
                                                Community                 Regional              Impact Fees -
                                                  Parks                    Parks                   Roads

                                             Final                    Final                    Final
                                            Budget       Actual      Budget        Actual     Budget        Actual
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental
 Charges for services
 Fines and forfeitures
 Impact fees                                    $439        $318         $379         $299    $10,507        $6,243
 Special assessments
 Miscellaneous                                   177           178           150         25     2,044         1,786
    Total revenues                               616           496           529        324    12,551         8,029
EXPENDITURES
 Current
  General government                                           31                       32                    1,804
  Public safety
  Physical environment
  Transportation                                                                                1,664           418
  Economic environment
  Human services
  Culture and recreation                          66           50             70        41
 Capital outlay
  General government
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                             66            81           70         73      1,664         2,222
Excess (deficiencies) of revenues
 over (under) expenditures                       550           415           459        251    10,887          5,807
OTHER FINANCING SOURCES (USES)
 Transfers in
 Transfers out                                 (9,235)    (9,215)       (2,251)       (967)   (93,236)       (92,343)
   Total other financing sources (uses)        (9,235)    (9,215)       (2,251)       (967)   (93,236)       (92,343)

Net change in fund balances                   (8,685)     (8,800)      (1,792)        (716)   (82,349)       (86,536)
                                              12,750      15,106        1,792        1,734     95,100        91,818
Fund balances - beginning
Fund balances - ending                        $4,065      $6,306             $0     $1,018    $12,751        $5,282

                                                                                                         (continued)

                                                               122
                                      Lee County, Florida
               COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                             For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)



                                                Non - GAAP               Non - GAAP               Non - GAAP
                                                Impact Fees -              Animal                   Court
                                                   EMS                   Trust Fund              Administration
                                              Final                     Final                    Final
                                             Budget      Actual        Budget      Actual       Budget       Actual

REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                                                 $769
 Charges for services                                                        $18        $5        6,141        $4,706
 Fines and forfeitures                                                                               67             5
 Impact fees                                    $190        $131
 Special assessments
 Miscellaneous                                    43             25          41         70          520           661
    Total revenues                               233            156          59         75        7,497         5,372
EXPENDITURES
 Current
  General government                              26             20                              17,725        16,053
  Public safety                                  100            100
  Physical environment
  Transportation
  Economic environment
  Human services                                                              40        34
  Culture and recreation
 Capital outlay
  General government                                                                              1,078           935
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                            126            120          40         34       18,803        16,988
Excess (deficiencies) of revenues
 over (under) expenditures                       107             36          19         41       (11,306)     (11,616)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                                     7,583         7,533
 Transfers out                                    (20)          (20)                               (250)
   Total other financing sources (uses)           (20)          (20)          0             0     7,333         7,533
Net change in fund balances                       87             16          19         41        (3,973)      (4,083)
Fund balances - beginning                       1,766      1,770           392         390       12,343        12,353
Fund balances - ending                         $1,853     $1,786          $411        $431       $8,370        $8,270
                                                                                                          (continued)


                                                          123
                                       Lee County, Florida
                COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
               IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                   SPECIAL REVENUE FUNDS
                              For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                Non - GAAP
                                                  Clerk of
                                               Circuit Court's                            Total
                                                   Special                                           Variance with
                                                  Revenue                                            Final Budget
                                              Final                     Final                          Positive
                                             Budget      Actual        Budget           Actual        (Negative)
REVENUES
 Taxes                                                                        $6,864       $9,910          $3,046
 Licenses and permits                                                            235           59             (176)
 Intergovernmental                             $2,979     $2,979              25,136       19,764           (5,372)
 Charges for services                          12,878     12,428              23,609       22,396           (1,213)
 Fines and forfeitures                                                           267          803              536
 Impact fees                                                                  11,596        7,003           (4,593)
 Special assessments                                                             372          621              249
 Miscellaneous                                    174         60               8,067        5,240           (2,827)
    Total revenues                             16,031     15,467              76,146       65,796         (10,350)
EXPENDITURES
 Current
  General government                           16,686     15,068              42,976       37,908           5,068
  Public safety                                                                4,744        4,987            (243)
  Physical environment                                                         5,713        5,338             375
  Transportation                                                              37,872       35,283           2,589
  Economic environment                                                        15,381        6,383           8,998
  Human services                                                               4,439        2,495           1,944
  Culture and recreation                                                         283          197              86
 Capital outlay
  General government                              626        390               2,134        1,325             809
  Public safety                                                                1,551          618             933
  Physical environment                                                           217          140              77
  Transportation                                                               4,762          970           3,792
  Economic environment                                                           178          111              67
  Human services                                                                               11             (11)
  Culture and recreation
Debt Service
 Principal retirement
 Interest and fiscal charges
  Total expenditures                           17,312     15,458             120,250       95,766          24,484
Excess (deficiencies) of revenues
 over (under) expenditures                     (1,281)            9          (44,104)     (29,970)         14,134

OTHER FINANCING SOURCES (USES)
 Transfers in                                                              39,948          37,590          (2,358)
 Transfers out                                                           (116,064)       (113,607)          2,457
   Total other financing sources (uses)             0             0       (76,116)        (76,017)             99
Net change in fund balances                    (1,281)            9      (120,220)       (105,987)         14,233
Fund balances - beginning                       1,415       5,077            175,471      180,796           5,325
Fund balances - ending                          $134      $5,086             $55,251      $74,809         $19,558



                                                            124
                                        Lee County, Florida
                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                       DEBT SERVICE FUNDS
                               For the Year Ended September 30, 2009
                                         (amounts expressed in thousands)



                                              Local Option               Certificates              Road
                                                Gas Tax                       of                Improvement
                                             Revenue Bonds              Participation          Revenue Bonds
                                             Final                                             Final
                                            Budget         Actual     Budget     Actual       Budget      Actual
REVENUES
 Taxes                                        $9,651        $8,420                             $3,171
 Charges for services
 Special assessments
 Miscellaneous                                      17          10                                  8           $1
   Total revenues                                9,668       8,430          0             0     3,179            1

EXPENDITURES
 Debt Service
  Principal retirement                           3,040       3,040     $1,105      $1,105       1,065        1,065
  Interest and fiscal charges                      236         236        288         287          16           16
   Total expenditures                            3,276       3,276      1,393       1,392       1,081        1,081
Excess (deficiencies) of revenues
 over (under) expenditures                       6,392       5,154     (1,393)     (1,392)      2,098       (1,080)
OTHER FINANCING SOURCES (USES)
 Transfers in                                       802        820      1,422       1,424
 Transfers out                                   (6,203)    (5,898)                            (2,389)        (768)
 Proceeds from long-term debt
  Total other financing sources (uses)           (5,401)    (5,078)     1,422       1,424      (2,389)        (768)
Net change in fund balances                      991            76         29          32        (291)      (1,848)
Fund balances - beginning                      4,500         4,500      1,262       1,262       1,848        1,848
Fund balances - ending                        $5,491        $4,576     $1,291      $1,294      $1,557           $0


See accompanying independent auditors' report.                                                           (continued)




                                                            125
                                          Lee County, Florida
                   COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                  IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                         DEBT SERVICE FUNDS
                                 For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                 Tourist                                          Five Cent
                                              Development               Commercial              Local Option
                                                  Tax                       Paper                  Gas Tax
                                             Revenue Bonds                Projects             Revenue Bonds
                                            Final                     Final                   Final
                                           Budget      Actual        Budget      Actual      Budget      Actual

REVENUES
 Taxes
 Charges for services                          $300       $300
 Special assessments                                                         $88     $168
 Miscellaneous                                   53         17                                   $11             $3
   Total revenues                               353        317                88      168         11              3

EXPENDITURES
 Debt Service
  Principal retirement                          580        580               640      640      1,475          1,475
  Interest and fiscal charges                   249        248                                   958            958
   Total expenditures                           829        828               640      640      2,433          2,433
Excess (deficiencies) of revenues
                                               (476)       (511)             (552)   (472)     (2,422)        (2,430)
 over (under) expenditures
OTHER FINANCING SOURCES (USES)
 Transfers in                                  6,794      5,577              552      472      2,450          2,446
 Transfers out                                (7,991)    (7,670)
 Proceeds from long-term debt
   Total other financing sources (uses)       (1,197)    (2,093)             552      472      2,450          2,446
Net change in fund balances                  (1,673)     (2,604)               0        0         28             16
Fund balances - beginning                     4,147       4,148                0        0      1,964          1,964
Fund balances - ending                       $2,474      $1,544               $0       $0     $1,992         $1,980



                                                                                                         (continued)




                                                           126
                                          Lee County, Florida
                   COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                  IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                         DEBT SERVICE FUNDS
                                 For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)



                                                 Non - GAAP                     Non - GAAP
                                                   Capital                     MSBU Projects
                                                Revenue Bonds                 Commercial Loan
                                               Final                           Final
                                              Budget         Actual           Budget       Actual
REVENUES
 Taxes
 Charges for services
 Special assessments                                                             $791          $746
 Miscellaneous                                    $96            $34                6             1
   Total revenues                                  96             34              797           747

EXPENDITURES
 Debt Service
  Principal retirement                          11,775         11,775             604           603
  Interest and fiscal charges                    9,689          9,683             253           247
   Total expenditures                           21,464        21,458              857           850
Excess (deficiencies) of revenues
 over (under) expenditures                     (21,368)      (21,424)             (60)         (103)
OTHER FINANCING SOURCES (USES)
 Transfers in                                   21,723        21,689              145           125
 Transfers out                                                                   (748)         (653)
 Proceeds from long-term debt                                                     541           456
    Total other financing sources (uses)       21,723         21,689              (62)          (72)
Net change in fund balances                       355            265             (122)         (175)
Fund balances - beginning                      16,762         17,537              706           767
Fund balances - ending                        $17,117        $17,802             $584          $592



                                                                                         (continued)




                                                       127
                                          Lee County, Florida
                   COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                  IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                         DEBT SERVICE FUNDS
                                 For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)



                                                                    Total
                                                                                 Variance with
                                                                                 Final Budget
                                                   Final                           Positive
                                                  Budget           Actual         (Negative)
REVENUES
 Taxes                                               $12,822           $8,420          $(4,402)
 Charges for services                                    300              300                0
 Special assessments                                     879              914               35
 Miscellaneous                                           191               67             (124)
   Total revenues                                     14,192            9,701           (4,491)

EXPENDITURES
 Debt Service
  Principal retirement                                20,284           20,283               1
  Interest and fiscal charges                         11,689           11,675              14
   Total expenditures                                 31,973           31,958              15
Excess (deficiencies) of revenues
 over (under) expenditures                           (17,781)         (22,257)          (4,476)
OTHER FINANCING SOURCES (USES)
 Transfers in                                         33,888           32,553           (1,335)
 Transfers out                                       (17,331)         (14,989)           2,342
 Proceeds from long-term debt                            541              456              (85)
   Total other financing sources (uses)               17,098           18,020              922
Net change in fund balances                             (683)         (4,237)           (3,554)
Fund balances - beginning                             31,189          32,026               837
Fund balances - ending                               $30,506         $27,789           $(2,717)




                                                        128
                                        Lee County, Florida
                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                    CAPITAL PROJECTS FUNDS
                               For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)

                                                 Non - GAAP               Non - GAAP
                                              Special Assessment         Transportation            Capital
                                                   Districts                Capital            Revenue Bonds-
                                                 Construction            Improvements           Construction
                                               Final                    Final                  Final
                                              Budget     Actual        Budget      Actual     Budget       Actual
REVENUES
 Taxes                                                                   $5,773     $6,299
 Intergovernmental                                                        9,198      1,538
 Miscellaneous                                                            5,561      1,494        $18           $18
    Total revenues                                  0             0      20,532      9,331         18            18
EXPENDITURES
 Current
  Transportation                                                         19,663     12,273
  Culture and recreation
 Capital Outlay
  General government                                                                            2,043         2,044
  Physical Environment                           $392        $189
  Transportation                                                         61,060     20,376
  Culture and recreation
 Debt Service
  Interest and fiscal charges
    Total expenditures                            392         189        80,723     32,649      2,043         2,044

Excess (deficiencies) of revenues over
 (under) expenditures                            (392)        189       (60,191)   (23,318)    (2,025)       (2,026)

OTHER FINANCING SOURCES (USES)
 Transfers in                                     392         392        14,703     15,302
 Transfers out                                                          (13,183)   (12,022)    (4,499)       (4,498)

    Total other financing sources (uses)          392         392         1,520      3,280     (4,499)       (4,498)

Net change in fund balances                         0         203       (58,671)   (20,038)    (6,524)       (6,524)

Fund balances - beginning                           0             0      76,773     78,640      6,524         6,524
Fund balances - ending                             $0        $203       $18,102    $58,602        $0            $0

See accompanying independent auditors' report.
                                                                                                         (continued)




                                                           129
                                        Lee County, Florida
                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                    CAPITAL PROJECTS FUNDS
                               For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)


                                                 Non-GAAP                                           Non-GAAP
                                                   Library                   MSBU                   All Hazards
                                                 Construction             Construction              Construction
                                                   Projects                 Projects                  Projects

                                               Final                    Final                     Final
                                              Budget      Actual       Budget         Actual     Budget       Actual
REVENUES
 Taxes
 Intergovernmental
 Miscellaneous                                                   $2            $2          $1
    Total revenues                                   0            2             2           1          0               0
EXPENDITURES
 Current
  Transportation
  Culture and recreation                                    1,383
 Capital Outlay
  General government                                                                              $2,240
  Physical Environment                                                        624         628
  Transportation                                                                                     82
  Culture and recreation                      $19,198       8,254
 Debt Service
  Interest and fiscal charges                                                  16          11
    Total expenditures                          19,198      9,637             640         639      2,322               0

Deficiencies of revenues
 under expenditures                            (19,198)    (9,635)            (638)      (638)    (2,322)              0

OTHER FINANCING SOURCES (USES)
 Transfers in                                   19,198     19,198                                  2,322        $2,322
 Transfers out                                                                  (2)        (2)
    Total other financing sources (uses)        19,198     19,198               (2)        (2)     2,322         2,322

Net change in fund balances                          0      9,563             (640)      (640)         0         2,322
Fund balances - beginning                            0             0          640         640          0               0
Fund balances - ending                             $0      $9,563              $0          $0        $0         $2,322

See accompanying independent auditors' report.                                                              (continued)




                                                           130
                                        Lee County, Florida
                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                    CAPITAL PROJECTS FUNDS
                               For the Year Ended September 30, 2009
                                          (amounts expressed in thousands)

                                                Non-GAAP                 Non-GAAP                 Non-GAAP
                                                Impact Fees              Impact Fees              Impact Fees
                                              Community Parks           Regional Parks              Roads
                                                Construction             Construction             Construction

                                              Final                     Final                   Final
                                             Budget        Actual      Budget      Actual      Budget        Actual
REVENUES
 Taxes
 Intergovernmental
 Miscellaneous                                                   $1                      $22                       $8
    Total revenues                                   0            1           0           22         0              8
EXPENDITURES
 Current
  Transportation                                                                                                1,462
  Culture and recreation
 Capital Outlay
  General government
  Physical Environment
  Transportation                                                                               $85,174         42,697
  Culture and recreation                         $9,205          529    $1,817           647
 Debt Service
  Interest and fiscal charges
    Total expenditures                            9,205          529     1,817           647    85,174         44,159

Deficiencies of revenues                         (9,205)      (528)      (1,817)      (625)     (85,174)      (44,151)
 under expenditures

OTHER FINANCING SOURCES (USES)
 Transfers in                                     9,205      9,185       1,817           767    85,174         84,547
 Transfers out
                                                 9,205       9,185       1,817           767    85,174         84,547
   Total other financing sources (uses)
Net change in fund balances                          0       8,657            0       142            0         40,396
Fund balances - beginning                            0           0            0         0            0              0
Fund balances - ending                              $0      $8,657           $0      $142           $0        $40,396


See accompanying independent auditors' report.                                                             (continued)




                                                           131
                                        Lee County, Florida
                 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
                IN FUND BALANCES - BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                    CAPITAL PROJECTS FUNDS
                               For the Year Ended September 30, 2009
                                           (amounts expressed in thousands)

                                                  Non-GAAP
                                                  Impact Fees                          Total
                                                     EMS
                                                  Construction                              Variance with
                                                                                            Final Budget
                                               Final                      Final                Positive
                                              Budget       Actual        Budget      Actual   (Negative)
REVENUES
 Taxes                                                                    $5,773       $6,299        $526
 Intergovernmental                                                         9,198        1,538      (7,660)
 Miscellaneous                                                             5,581        1,546      (4,035)
     Total revenues                                  0              0     20,552        9,383     (11,169)
EXPENDITURES
 Current
  Transportation                                                          19,663       13,735       5,928
  Culture and recreation                                                                1,383      (1,383)
 Capital Outlay
  General government                               $20            $9       4,303        2,053       2,250
  Physical Environment                                                     1,016          817         199
  Transportation                                                         146,316       63,073      83,243
  Culture and recreation                                                  30,220        9,430      20,790
 Debt Service
    Interest and fiscal charges                                               16           11           5
     Total expenditures                             20              9    201,534       90,502     111,032
 Excess (deficiencies) of revenues over
  (under) expenditures                             (20)           (9)    (180,982)    (81,119)     99,863

 OTHER FINANCING SOURCES (USES)
  Transfers in                                      20            20     132,831      131,733      (1,098)
  Transfers out                                                          (17,684)     (16,522)      1,162
    Total other financing sources (uses)            20            20     115,147      115,211          64

 Net change in fund balances                         0            11      (65,835)     34,092      99,927
 Fund balances - beginning                           0              0     83,937       85,804       1,867
 Fund balances - ending                             $0           $11     $18,102     $119,896    $101,794

 See accompanying independent auditors' report.




                                                          132
Enterprise
 Funds




    133
    133
                                 Enterprise Funds

E   nterprise funds are used to account for operations that are financed and operated in a manner
    similar to private business enterprises. The intent of the County is that costs of providing the
goods or services to the general public on a continuous basis be financed or recovered primarily
through user fees.

Port Authority- The Lee County Port Authority is used to account for the activities related to the
operation of the County owned aviation facilities, including Southwest Florida International
Airport and Page Field General Aviation Airport.

Water and Wastewater- The Lee County Water and Wastewater System is used to account for the
activities related to the operation of the County owned water and wastewater system.

Transportation Facilities- The Lee County Transportation Facilities is used to account for the
activities related to the operation of the County owned bridges connecting Sanibel and Captiva
Islands to the mainland and the Cities of Cape Coral and Fort Myers.

Solid Waste- The Lee County Solid Waste System is used to account for the provision of
Municipal Solid Waste disposal facilities to the general public.

Transit- The Lee County Transit System is used to account for the activities related to the
operation of the Lee Tran bus system, a County-wide public transportation service.




                                                  134
                                                  134
                                                                   Lee County, Florida
                                             COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
                                                  NET ASSETS - BUDGET (NON-GAAP BUDGETARY BASIS)
                                                     AND ACTUAL WITH RECONCILIATION TO GAAP
                                                                  ENTERPRISE FUNDS
                                                          For the Year Ended September 30, 2009
                                                            (amounts expressed in thousands)

                                                               Port Authority                Water and Wastewater           Transportation Facilities

                                                          Budget           Actual           Budget          Actual          Budget            Actual
OPERATING REVENUES
  User fees                                                  $52,610             $45,515      $77,251         $83,962
 Tolls                                                                                                                        $38,706            $36,738
 Rentals and franchise fees                                    4,696               5,029         102                 190
 Concessions                                                  37,320              35,222
 Miscellaneous                                                 1,333                 229        1,234           1,554             249                422
 Total operating revenues                                     95,959              85,995       78,587          85,706          38,955             37,160
 Less: Rebates                                                (4,184)             (2,367)
  Net operating revenues                                      91,775              83,628       78,587          85,706          38,955             37,160
OPERATING EXPENSES
 Salaries and wages                                           20,074              19,593       15,600          14,335           3,679              3,301
 Employee benefits                                             9,561              12,092        6,204           7,666           2,436              2,176
 Contractual services, materials, and supplies                23,993              18,460       20,765          19,322           2,579              1,557
 Utilities                                                     5,480               5,412        7,790           7,073             440                345
 Repairs and maintenance                                       2,281               2,162        3,040           3,567           1,283                334
 Insurance                                                     3,610               2,504        1,219           1,219           1,461              1,346
 Other                                                         2,299               1,766        4,403           3,746           1,012                830
 Total operating expenses                                     67,298              61,989       59,021          56,928          12,890              9,889
    Operating income                                          24,477              21,639       19,566          28,778          26,065             27,271
NON - OPERATING REVENUES (EXPENSES)
  Interest revenue                                             8,006                859         3,651           1,697           1,306                   381
 Taxes
 Grants                                                                             386
 Special assessment collections                                                                   163              148
 Other debt proceeds                                                                            3,200           13,564
 Interest expense                                            (21,529)            (21,244)      (8,810)          (9,461)       (12,574)            (9,455)
  Capital outlay                                             (41,683)            (16,089)     (73,018)         (37,834)       (13,867)            (1,907)
  Principal retirement                                       (10,142)             (8,820)      (6,507)          (6,765)       (19,256)           (19,031)
  Proceeds from disposal of capital assets                                            23                           233                                 6
 Passenger facility charges                                   18,211              14,942
 Other revenues                                                    2                   7          964              523             10                279
 Other expenses                                                  (30)                 (6)          (8)            (202)          (228)              (140)
Total non - operating revenues (expenses)                    (47,165)            (29,942)     (80,365)         (38,097)       (44,609)           (29,867)
Income (loss) before contributions, special item
 and transfers                                               (22,688)             (8,303)     (60,799)         (9,319)        (18,544)            (2,596)
  Capital contributions                                       20,346              19,895       12,371           9,987                                304
 Transfers in                                                 94,028              55,285       32,080          33,949          57,436             57,695
 Transfers out                                               (93,527)            (55,285)     (32,080)        (33,949)        (54,836)           (57,175)
Total contributions and transfers                             20,847              19,895       12,371           9,987           2,600                824
Change in net assets                                          (1,841)             11,592      (48,428)            668         (15,944)            (1,772)
Total net assets - beginning                                 123,620             148,566      117,487         153,830          29,520             32,592
Total net assets - ending                                   $121,779            $160,158      $69,059        $154,498         $13,576            $30,820
RECONCILIATION OF BUDGETARY BASIS TO GAAP
 Change in net assets, budgetary basis                                           $11,592                         $668                            ($1,772)
   Add: Capital outlay                                                            16,089                       37,834                              1,907
          Principal retirement                                                     8,820                        6,765                             19,031
          Principal retirement-Interfund Loan                                                                                                      1,500
          Capitalized interest                                                      130
          Fair market value adjustment                                                                               151                                 37
          Inventory Adjustment                                                                                        97
          Prepaid Adjustment
          Capital contributions                                                                                 11,430
          Compensated absences                                                                                     133                                 28
   Less: Depreciation and amortization                                           (19,339)                      (29,667)                            (8,083)
          Fair market value adjustment                                               (30)
          Inventory adjustments                                                     (180)                                                           (207)
          Compensated absences                                                       (50)
          Amortization of discount and issuance costs                               (666)                           (451)                            (895)
          Interfund Loan with 30700                                                                                                                (7,321)
          Loan payments from other governments
          Special assessment collections                                                                         (148)
          Other debt proceeds                                                                                 (13,564)
          Net book value of capital assets disposed                                   (3)                        (795)                                  (10)
          Fixed Asset Transfer/Adjustments                                                                        (30)
          Prepaid Adjustment                                                                                       (6)                                  (89)
          Accounts receivable adjustments                                                                        (377)
Change in net assets                                                             $16,363                      $12,040                             $4,126


See accompanying independent auditors' report.                                                                                                (continued)




                                                                          135
                                                                               Lee County, Florida
                                                        COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
                                                             NET ASSETS - BUDGET (NON-GAAP BUDGETARY BASIS)
                                                                AND ACTUAL WITH RECONCILIATION TO GAAP
                                                                              ENTERPRISE FUNDS
                                                                      For the Year Ended September 30, 2009
                                                                         (amounts expressed in thousands)
                                                                                                      Other Non-Major                          Total
                                                                    Solid Waste                           Transit                                           Variance
                                                                                                                                                            Positive
                                                               Budget         Actual                Budget        Actual         Budget        Actual       (Negative)
OPERATING REVENUES
  User fees                                                       $65,481        $68,439               $3,271        $3,297       $198,613      $201,213         $2,600
 Tolls                                                                                                                              38,706        36,738         (1,968)
 Rentals and franchise fees                                         1,956          1,586                     11             10       6,765         6,815             50
 Concessions                                                                                                                        37,320        35,222         (2,098)
 Miscellaneous                                                     15,917         16,933                    1            33         18,734        19,171            437
 Total operating revenues                                          83,354         86,958                3,283         3,340        300,138       299,159           (979)
  Less: Rebates                                                                                                                     (4,184)       (2,367)         1,817
  Net operating revenues                                           83,354         86,958                3,283         3,340        295,954       296,792            838
OPERATING EXPENSES
 Salaries and wages                                                 3,223          3,248                9,788         9,395         52,364        49,872          2,492
 Employee benefits                                                  1,543          1,987                5,065         6,288         24,809        30,209         (5,400)
  Contractual services, materials, and supplies                    51,886         49,754                5,085         2,970        104,308        92,063         12,245
 Utilities                                                            604          1,249                  236           229         14,550        14,308            242
 Repairs and maintenance                                            1,010            977                1,557         1,405          9,171         8,445            726
 Insurance                                                            425            428                  645           645          7,360         6,142          1,218
 Other                                                                960            901                  894           811          9,568         8,054          1,514
 Total operating expenses                                          59,651         58,544               23,270        21,743        222,130       209,093         13,037
    Operating income (loss)                                        23,703         28,414              (19,987)      (18,403)        73,824        87,699         13,875
NON - OPERATING REVENUES (EXPENSES)
  Interest revenue                                                  4,027            462                 350               209       17,340        3,608        (13,732)
  Taxes                                                             1,497          1,524                                              1,497        1,524             27
 Grants                                                                69            653                5,685         4,621           5,754        5,660            (94)
  Special assessment collections                                                                                                        163          148            (15)
  Other debt proceeds                                                                                   1,500         1,500           4,700       15,064         10,364
 Interest expense                                                  (8,498)        (8,498)                                           (51,411)     (48,658)         2,753
  Capital outlay                                                  (34,166)        (6,550)             (11,067)       (3,071)       (173,801)     (65,451)       108,350
  Principal retirement                                            (13,590)       (13,590)                (600)         (600)        (50,095)     (48,806)         1,289
  Proceeds from disposal of capital assets                                                                 45           102              45          364            319
 Passenger facility charges                                                                                                          18,211       14,942         (3,269)
  Other revenues                                                       15             27                3,012               19        4,003          855         (3,148)
  Other expenses                                                       (4)            (4)                                              (270)        (352)           (82)
Total non - operating revenues (expenses)                         (50,650)       (25,976)              (1,075)        2,780        (223,864)    (121,102)       102,762
Income (loss) before contributions, special item
 and transfers                                                    (26,947)         2,438              (21,062)      (15,623)      (150,040)      (33,403)       116,637
  Capital contributions                                                                                 9,846         5,062         42,563        35,248         (7,315)
  Transfers in                                                     39,266         37,774               12,325        13,721        235,135       198,424        (36,711)
  Transfers out                                                   (39,048)       (37,404)                (600)         (600)      (220,091)     (184,413)        35,678
Total contributions, special item, and transfers                      218            370               21,571        18,183         57,607        49,259         (8,348)
Change in net assets                                              (26,729)         2,808                  509         2,560        (92,433)       15,856        108,289
Total net assets - beginning                                      131,209        139,671                8,047         7,490        409,883       482,149         72,266
Total net assets - ending                                        $104,480       $142,479               $8,556       $10,050       $317,450      $498,005       $180,555
RECONCILIATION OF BUDGETARY BASIS TO GAAP
 Change in net assets, budgetary basis                                            $2,808                             $2,560                      $15,856
   Add: Capital outlay                                                             6,550                              3,071                       65,451
          Principal retirement                                                    13,590                                600                       48,806
          Principal retirement-Interfund Loan                                                                                                      1,500
          Capitalized interest                                                                                                                       130
          Fair market value adjustment                                                 140                                  12                       340
          Inventory Adjustment                                                                                                                        97
          Prepaid Adjustment                                                                                             27                           27
          Capital contributions                                                      654                                216                       12,300
          Compensated absences                                                        13                                 69                          243
   Less: Depreciation and amortization                                           (12,620)                            (1,881)                     (71,590)
          Fair market value adjustment                                                                                                               (30)
          Inventory adjustments                                                                                                                     (387)
          Compensated absences                                                                                                                       (50)
          Amortization of discount and issuance costs                               (320)                                                         (2,332)
          Interfund Loan with 30700                                                                                                               (7,321)
          Loan payments from other governments                                         (80)                                                          (80)
          Special assessment collections                                                                                                            (148)
          Other debt proceeds                                                                                        (1,500)                     (15,064)
          Net book value of capital assets disposed                                    (90)                              (4)                        (902)
          Fixed Asset Transfer/Adjustments                                                                                                           (30)
          Prepaid Adjustment                                                         (13)                                                           (108)
          Accounts receivable adjustments                                            (12)                                                           (389)
Change in net assets                                                             $10,620                             $3,170                      $46,319




                                                                                              136
   Internal
Service Funds




      137
      137
                            Internal Service Funds

I nternal service funds are used to account for the financing of goods or services provided by one
  County department or agency to other County departments or agencies on a cost
reimbursement basis, including depreciation.

Information Technology- To account for the costs of operating the County data processing facility
and telephone communication system. Such costs are billed to other departments at estimated
cost of operations, plus amounts for equipment replacement and additions.

Governmental Communications Network- To account for the costs of operating the radio
communication system owned by the County. Such costs are billed to other departments at es-
timated cost of operations, plus amounts for equipment replacement and additions.

Self-Insurance Group Health and Dental- To account for the assessed premiums, claims, and
administration of the County for group health and dental insurance. Such costs are billed to
other departments and agencies at estimated cost of operations.

Self-Insurance General Liability- To account for the assessed premiums, claims, and
administration of the County's risk management, including auto liability, workers' compensation,
and property liability. Such costs are billed to other departments and agencies at estimated cost
of operations.

Fleet Management- To account for the costs of operation for the repair and maintenance of
County owned/leased vehicles and equipment. Such costs are billed to other departments at
estimated cost of operations, plus amounts for equipment replacement and additions.

Sheriff’s Internal Service- To account for the assessed premiums, claims, and administration of
the Sheriff's group health insurance.




                                                 138
                                                 138
                                                                                     Lee County, Florida
                                                                           COMBINING STATEMENT OF NET ASSETS
                                                                                INTERNAL SERVICE FUNDS
                                                                                   As of September 30, 2009
                                                                               (amounts expressed in thousands)


                                                                            Governmental               Self - Insurance                                    Sheriff's
                                                         Information       Communications     Group Health           General               Fleet           Internal
      ASSETS                                             Technology           Network           and Dental           Liability          Management         Service         Total
      Current Assets:
       Cash and equity in pooled cash and investments          $3,076              $6,325            $32,298              $19,880            $25,101           $12,838       $99,518
       Receivables (net)                                               6                67                 536                    84                110                             803
       Due from other funds                                       707                   52                 10                                       577                            1,346
       Due from other governments                                                                          33                                                                         33
       Inventories                                                                                                                                  242                             242
       Other                                                       43                   14                                       158                                                215
         Total current assets                                   3,832               6,458             32,877               20,122              26,030            12,838      102,157

      Noncurrent Assets:
       Capital assets:
         Non-depreciable                                        1,425                 525                                                           510                            2,460
         Depreciable                                           14,404               8,546                     2                   31           18,961                         41,944
         Less accumulated depreciation                         (12,163)             (6,964)                   (2)                (25)         (11,733)                        (30,887)




139
         Total noncurrent assets                                3,666               2,107                     0                    6               7,738               0      13,517
           Total assets                                         7,498               8,565             32,877               20,128              33,768            12,838      115,674


      LIABILITIES
      Current liabilities:
        Contracts and accounts payable                            975                 390                  580                    71                385                            2,401
        Accrued liabilities                                        10                   39                  71                    54                284                             458
        Due to other funds                                             1                23                    1                  46                   6                              77
        Due to other governments                                       1                 2                    2                    2                  9                              16
        Self-insurance claims payable                                                                   5,895               1,228                                 2,708            9,831
        Compensated absences                                                                                                                          1                               1
           Total current liabilities                              987                 454               6,549               1,401                   685           2,708       12,784
      Noncurrent liabilities:
       Self-insurance claims payable                                                                                        9,708                                                  9,708
       Compensated absences                                        10                   33                  33                    16                134                             226
           Total noncurrent liabilities                            10                   33                  33              9,724                   134                0           9,934
             Total liabilities                                    997                 487               6,582              11,125                   819           2,708       22,718
      NET ASSETS
       Invested in capital assets, net of related debt          3,666               2,107                                          6               7,738                      13,517
       Unrestricted                                             2,835               5,971             26,295                8,997              25,211            10,130       79,439
             Total net assets                                  $6,501              $8,078            $26,295               $9,003            $32,949           $10,130       $92,956

       See accompanying independent auditors' report.
                                                                     Lee County, Florida
                                       COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                 INTERNAL SERVICE FUNDS
                                                            For the Year Ended September 30, 2009
                                                              (amounts expressed in thousands)

                                                                         Governmental              Self - Insurance                                  Sheriff's
                                                       Information       Communication     Group Health          General             Fleet           Internal
                                                       Technology          Network          and Dental           Liability         Management        Service           Total

      OPERATING REVENUES
       User fees                                            $14,672             $1,984           $52,198              $12,367            $8,264          $24,421        $113,906
         Total operating revenues                            14,672              1,984            52,198               12,367                8,264         24,421        113,906


      OPERATING EXPENSES
       Salaries and wages                                       100                264              412                      295             1,400                             2,471
       Employee benefits                                         32                112              203                      150              782                              1,279
       Contractual services, materials and supplies           9,870                302             3,146                     401             3,047               748      17,514
       Utilities                                              2,548                173                   8                     6               77                              2,811
       Repairs and maintenance                                  589                606                                         1             2,051                             3,247
       Insurance                                                                      4                                 5,005                  43                948           6,000
       Insurance claims                                                                           50,265                3,403                              20,425         74,093
       Other                                                    143                  93             102                       72              296                               707




140
       Depreciation                                           1,289                284                   1                     3             2,029                             3,606
         Total operating expenses                            14,571              1,838            54,137                9,336                9,725         22,121        111,728
      Operating income (loss)                                   101                146            (1,939)               3,031            (1,461)            2,300              2,178

      NON-OPERATING REVENUES (EXPENSES)
       Interest earnings                                         36                105              487                      231              395                 37           1,291
       Grants                                                                    (1,087)                                     114                                               (973)
       Gain (loss) on disposal of capital assets              (1,178)                (1)                                                      370                              (809)
       Other revenues                                           145                194              234                       20               16                               609
       Other expenses                                                              (21)                                                                                         (21)
        Total non-operating revenues (expenses)                (997)              (810)             721                      365              781                 37             97

      Income (loss) before transfers                           (896)              (664)           (1,218)               3,396                (680)          2,337              2,275
       Capital contributions                                                                                                                    5                                 5
       Transfers in                                                                                1,913                                       19                              1,932
       Transfers out
         Total transfers                                             0                0            1,913                       0               24                  0           1,937

      Change in net assets                                     (896)              (664)             695                 3,396                (656)          2,337              4,212

      Total net assets - beginning                            7,397              8,742            25,600                5,607            33,605             7,793         88,744

      Total net assets - ending                              $6,501             $8,078           $26,295               $9,003           $32,949          $10,130         $92,956

      See accompanying independent auditors' report.
                                                                      Lee County, Florida
                                                      COMBINING STATEMENT OF CASH FLOWS
                                                              INTERNAL SERVICE FUNDS
                                                          For the Year Ended September 30, 2009
                                                            (amounts expressed in thousands)


                                                                        Governmental        Self-Insurance Self-Insurance                      Sheriff's
                                                      Information      Communications       Group Health      General            Fleet         Internal
                                                      Technology           Network           and Dental       Liability       Management     Service Fund        Total
CASH FLOWS FROM OPERATING ACTIVITIES
   Receipts from customers and users                         $310                $1,314           $8,969            $734            $772                          $12,099
   Receipts from interfund services provided               14,663                    822          43,227          12,365            7,645        $24,421          103,143
   Payments to suppliers                                   (12,276)                (743)         (52,216)         (8,228)          (5,609)       (21,605)        (100,677)
   Payments to employees                                     (127)                 (358)            (556)           (399)          (1,927)                         (3,367)
   Payments for interfund services used                        (12)                (205)            (125)            (92)            (597)                         (1,031)
Net cash provided by (used in) operating activities         2,558                    830            (701)          4,380             284            2,816          10,167

CASH FLOWS FROM NONCAPITAL
 FINANCING ACTIVITIES
   Non-capital grant issued                                                      (1,087)                                                                           (1,087)
   Transfers in                                                                                    1,913             114                                            2,027
Net cash provided by (used in) noncapital
 financing activities                                            0               (1,087)           1,913             114                 0                 0         940

CASH FLOWS FROM CAPITAL AND
 RELATED FINANCING ACTIVITIES
   Additions to capital assets                               (635)                 (428)                                           (1,863)                         (2,926)
   Proceeds from sale of capital assets                                                                                              420                             420
Net cash used in capital and related financing               (635)                 (428)               0                  0        (1,443)                 0       (2,506)

CASH FLOWS FROM INVESTING ACTIVITIES
   Interest on investments                                     40                    125             572             268             479               37           1,521
Net cash provided by investing activities                      40                    125             572             268             479               37           1,521
Net increase (decrease)                                     1,963                  (560)           1,784           4,762             (680)          2,853          10,122
Cash and cash equivalents at beginning of year              1,113                 6,885           30,514          15,118          25,781           9,985           89,396
Cash and cash equivalents at end of year                   $3,076                $6,325          $32,298         $19,880         $25,101         $12,838          $99,518
Classified as:
   Current assets                                          $3,076                $6,325          $32,298         $19,880         $25,101         $12,838          $99,518

NON-CASH INVESTING, CAPITAL,
AND FINANCING ACTIVITIES
   Increase in fair value of investments                       $2                     $9             $42             $23             $35                            $111


See accompanying independent auditors' report.                                                                                                                 (continued)




                                                                               141
                                                                          Lee County, Florida
                                                           COMBINING STATEMENT OF CASH FLOWS
                                                                   INTERNAL SERVICE FUNDS
                                                               For the Year Ended September 30, 2009
                                                                 (amounts expressed in thousands)


                                                                            Governmental        Self-Insurance Self-Insurance                           Sheriff's
                                                           Information     Communications       Group Health      General              Fleet            Internal
                                                           Technology          Network           and Dental       Liability         Management        Service Fund   Total


Reconciliation of operating income (loss) to net cash
 provided by (used in) operating activities:
Operating income (loss)                                           $101                 $146          ($1,939)         $3,031            ($1,461)           $2,300     $2,178


Adjustments to reconcile operating income (loss) to net
 cash provided by (used in) operating activities:

   Depreciation                                                  1,289                   284               1                  3           2,029                         3,606
   Other revenues                                                  145                   194             234              21                   16                        610
   (Increase) decrease in accounts receivable                        3                   (53)           (204)            (47)                  (11)                      (312)
   Decrease in due from other funds                                                       11               2             759               147                           919
   (Increase) decrease in due from other governments               153                                   (34)                                                            119
   (Increase) in inventories                                                                                                                    (9)                           (9)
   (Increase) decrease in other assets                             286                    (5)                            (29)                  11                        263
   Increase (decrease) in contracts and accounts payable           598                   280             281            (112)              (353)                         694
   (Decrease) in accrued liabilities                                (2)                                  (18)            (13)                  (55)                          (88)
   Increase (decrease) in due to other funds                       (13)                   (5)                            (14)                    2                           (30)
   (Decrease) in due to other governments                           (1)                   (4)             (7)                 (5)              (17)                          (34)
   (Decrease) in compensated absences                               (1)                   (8)             (5)                 (1)              (15)                          (30)
   Increase (decrease) in other liabilities                                              (10)            988             787                                  516       2,281
Total adjustments                                                2,457                   684           1,238           1,349              1,745               516       7,989
Net cash provided by (used in) operating activities             $2,558                 $830            ($701)         $4,380              $284             $2,816    $10,167




                                                                                      142
                                              Lee County, Florida
                        COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
                             NET ASSETS - BUDGET (NON-GAAP BUDGETARY BASIS)
                                AND ACTUAL WITH RECONCILIATION TO GAAP
                                          INTERNAL SERVICE FUNDS
                                     For the Year Ended September 30, 2009
                                       (amounts expressed in thousands)

                                                                                     Governmental
                                                    Information Technology       Communications Network

                                                    Budget         Actual         Budget        Actual
OPERATING REVENUES
 User fees                                            $14,815        $14,672        $1,805         $1,984
 Total operating revenues                              14,815         14,672         1,805          1,984
OPERATING EXPENSES
 Salaries and wages                                       109            100           298            273
 Employee benefits                                         28             32            94            112
 Contractual services, materials, and supplies          9,800          9,651           102            302
 Utilities                                              2,632          2,548           192            173
 Repairs and maintenance                                  676            522           757            605
 Insurance                                                                               4              4
 Insurance claims
 Other                                                    162            143           164             99
 Total operating expenses                              13,407         12,996         1,611          1,568
   Operating income (loss)                              1,408          1,676           194            416
NON - OPERATING REVENUES (EXPENSES)
 Interest revenue                                            40             33           75            96
 Grants                                                                              (1,671)       (1,087)
 Capital outlay                                        (2,717)          (635)          (671)         (429)
 Proceeds from disposal of PP&E
 Other revenues                                                          145            141           194
Total non - operating revenues (expenses)              (2,677)          (457)        (2,126)       (1,226)

Income (loss) before operating transfers               (1,269)         1,219         (1,932)         (810)

 Transfers in
 Transfers out
Total transfers                                               0              0             0             0

Change in net assets                                   (1,269)         1,219         (1,932)         (810)

Total net assets - beginning                            1,910          4,142         6,806          5,923

Total net assets - ending                               $641          $5,361        $4,874         $5,113

RECONCILIATION OF BUDGETARY BASIS TO GAAP
 Change in net assets, budgetary basis                                $1,219                        ($810)
  Add: Capital outlay                                                    635                          429
        Compensated absences                                               1                            8
        Fair market value adjustment                                       2                            9
        Capital contributions
        Capital asset transfers in
        Prepaid Invoices                                                                                 5
        Inventory
  Less: Depreciation and amortization                                 (1,289)                        (284)
        Prepaid Adjustments                                             (286)
        Net book value of PP&E disposed                               (1,178)                           1
        Capital Asset Adjustment                                                                      (22)
        Claims payable reserve
Change in net assets                                                   ($896)                       ($664)

See accompanying independent auditors' report.                                                 (continued)




                                                         143
                                             Lee County, Florida
                       COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
                            NET ASSETS - BUDGET (NON-GAAP BUDGETARY BASIS)
                               AND ACTUAL WITH RECONCILIATION TO GAAP
                                         INTERNAL SERVICE FUNDS
                                    For the Year Ended September 30, 2009
                                       (amounts expressed in thousands)

                                                    Self-Insurance Group         Self-Insurance General
                                                     Health and Dental                   Liability

                                                 Budget          Actual          Budget         Actual
OPERATING REVENUES
 User fees                                         $51,965         $52,198        $11,735         $12,367
 Total operating revenues                           51,965          52,198         11,735          12,367
OPERATING EXPENSES
 Salaries and wages                                    433               417          332             296
 Employee benefits                                     168               203          135             150
 Contractual services, materials, and supplies       3,228             3,146          598             400
 Utilities                                               8                 8            9               6
 Repairs and maintenance                                                                3               1
 Insurance                                                                          7,258           5,035
 Insurance claims                                   51,613            49,277        3,289           2,616
 Other                                                 113               102           95              72
 Total operating expenses                           55,563            53,153       11,719           8,576
   Operating income (loss)                          (3,598)             (955)          16           3,791
NON - OPERATING REVENUES (EXPENSES)
 Interest revenue                                     800               445           250             208
 Grants                                                                                               114
 Capital outlay
 Proceeds from disposal of PP&E
 Other revenues                                                         234                            20
Total non - operating revenues (expenses)             800               679           250             342

Income (loss) before operating transfers            (2,798)             (276)         266           4,133

 Transfers in                                        1,875             1,938
 Transfers out                                         (25)              (25)
Total transfers                                      1,850             1,913              0                0

Change in net assets                                  (948)            1,637          266           4,133

Total net assets - beginning                        30,574            31,801       15,779          13,526

Total net assets - ending                          $29,626         $33,438        $16,045         $17,659

RECONCILIATION OF BUDGETARY BASIS TO GAAP
 Change in net assets, budgetary basis                                $1,637                       $4,133
  Add: Capital outlay
        Compensated absences                                                5                              1
        Fair market value adjustment                                       42                             23
        Capital contributions
        Capital asset transfers in
        Prepaid Invoices                                                                                  29
        Inventory
  Less: Depreciation and amortization                                      (1)                            (3)
        Prepaid Adjustments
        Net book value of PP&E disposed
        Capital Asset Adjustment
        Claims payable reserve                                         (988)                         (787)
Change in net assets                                                   $695                        $3,396

                                                                                               (continued)




                                                                144
                                                     Lee County, Florida
                               COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN
                                    NET ASSETS - BUDGET (NON-GAAP BUDGETARY BASIS)
                                       AND ACTUAL WITH RECONCILIATION TO GAAP
                                                 INTERNAL SERVICE FUNDS
                                            For the Year Ended September 30, 2009
                                               (amounts expressed in thousands)

                                                                                              Total
                                                     Fleet Management                                      Variance
                                                                                                           Positive
                                                   Budget         Actual         Budget       Actual      (Negative)
OPERATING REVENUES
 User fees                                          $11,357            $8,264     $91,677      $89,485       ($2,192)
 Total operating revenues                            11,357             8,264      91,677       89,485        (2,192)
OPERATING EXPENSES
 Salaries and wages                                   1,444             1,415       2,616        2,501           115
 Employee benefits                                      624               782       1,049        1,279          (230)
 Contractual services, materials, and supplies        6,381             3,037      20,109       16,536         3,573
 Utilities                                               92                76       2,933        2,811           122
 Repairs and maintenance                              2,521             2,061       3,957        3,189           768
 Insurance                                               43                43       7,305        5,082         2,223
 Insurance claims                                                                  54,902       51,893         3,009
 Other                                                  319               295         853          711           142
 Total operating expenses                            11,424             7,709      93,724       84,002         9,722
   Operating income (loss)                              (67)              555      (2,047)       5,483         7,530
NON - OPERATING REVENUES (EXPENSES)
 Interest revenue                                       815              360         1,980       1,142          (838)
 Grants                                                                             (1,671)       (973)          698
 Capital outlay                                       (3,993)          (1,912)      (7,381)     (2,976)        4,405
 Proceeds from disposal of PP&E                          485              420          485         420           (65)
 Other revenues                                            3               16          144         609           465
Total non - operating revenues (expenses)             (2,690)          (1,116)      (6,443)     (1,778)        4,665

Income (loss) before operating transfers              (2,757)            (561)      (8,490)      3,705        12,195

 Transfers in                                         1,389                         3,264        1,938        (1,326)
 Transfers out                                                                        (25)         (25)            -
Total transfers                                       1,389                 0       3,239        1,913        (1,326)

Change in net assets                                  (1,368)            (561)      (5,251)      5,618        10,869

Total net assets - beginning                         25,665            26,128      80,734       81,520           786

Total net assets - ending                           $24,297           $25,567     $75,483      $87,138       $11,655

RECONCILIATION OF BUDGETARY BASIS TO GAAP
 Change in net assets, budgetary basis                                 ($561)                   $5,618
  Add: Capital outlay                                                  1,912                     2,976
        Compensated absences                                              15                        30
        Fair market value adjustment                                      35                       111
        Capital contributions                                              5                         5
        Capital asset transfers in                                        19                        19
        Prepaid Invoices                                                                            34
        Inventory                                                           9                        9
  Less: Depreciation and amortization                                  (2,029)                  (3,606)
        Prepaid Adjustments                                               (11)                    (297)
        Net book value of PP&E disposed                                   (50)                  (1,227)
        Capital Asset Adjustment                                                                   (22)
        Claims payable reserve                                                                  (1,775)
Change in net assets                                                   ($656)                   $1,875




                                                                145
This page is intentionally blank.




                 146
Fiduciary
  Funds




    147
    147
                          Trust and Agency Funds

T   rust and agency funds are used to account for assets held by the County in a trustee capacity,
    or as an agent for individuals, private organizations, and other governments.

Other Post-Employment Benefits Trust- To account for the plan assets held in trust for the Other
Post-Employment Benefits Plan.

Bonita Springs Road Impact Fees- To account for the assets held by the Board as an agent for the
City of Bonita Springs.

Construction Management- To account for construction type escrows for pending environmental
issues.

Impact Fees- Fire- To account for revenues received from impact fees that are restricted for the
purpose of providing equipment and fire protection within designated fire districts.

Impact Fees- School- To account for impact fees collected on behalf of the Lee County School
Board and restricted for the construction of new schools and for capital improvements to existing
schools within the designated school zones.

Cash Bonds- To account for the assets held by the Board as an agent for individuals,
organizations, or other governments.

Clerk of Circuit Court- To account for the assets held by the Clerk of Circuit Court as an agent for
individuals, organizations, and other governments. These assets are held for the following
purposes: Jury and Witness, Delinquent Tax, Registry, Criminal Fine and Forfeiture, Fine and
Forfeiture, Documentary Stamp and Intangible Tax, Juvenile Victim Restitution, Prosecution and
Investigation, and Criminal Cash Bonds.

Sheriff- To account for the assets held by the Sheriff as an agent for individuals, organizations, or
other governments. These assets are held for the following purposes: Civil Fees and Levies, Jail
Inmate monies, Forfeiture, and CLEAN Forfeiture.

Tax Collector- To account for the assets held by the Tax Collector as an agent for individuals,
organizations, or other governments. These assets are held for the following purposes: Fee
Operating Fund, License and Permit, Occupational License, Tag Agency, Taxes/Ad Valorem, and
Taxes - Individual Certificates.




                                                   148
                                                    148
                                                   148
                                   Lee County, Florida
                     COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                  FIDUCIARY FUNDS
                                 As of September 30, 2009
                                    (amounts expressed in thousands)


                                                               Agency Funds
                                                       Board Of County Commissioners
                                            Bonita Springs
                                                Road             Construction         Fire
                                             Impact Fees         Management        Impact Fees

ASSETS
Cash and equity in pooled
 cash and investments                               $1,167              $3,998              $126
Receivables (net)
 Accounts                                                                                        1
Due from other governments
 Total assets                                          1,167             3,998               127

LIABILITIES
Contracts and accounts payable                            2                393                   2
Due to individuals
Due to other governments                               1,165                                 125
Bonds and deposits                                                       3,605
 Total liabilities                                  $1,167              $3,998              $127




See accompanying independent auditors' report.                                         (continued)




                                                 149
                                   Lee County, Florida
                     COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                  FIDUCIARY FUNDS
                                 As of September 30, 2009
                                 (amounts expressed in thousands)


                                                           Agency Funds
                                        Board Of County Commissioners
                                                                             Clerk of
                                            School                           Circuit
                                          Impact Fees         Cash Bonds      Court
ASSETS
Cash and equity in pooled
 cash and investments                            $4,037              $855       $29,150
Receivables (net)
 Accounts                                             29                             144
Due from other governments                                                            22
 Total assets                                     4,066               855         29,316
LIABILITIES
Contracts and accounts payable                       12                 42              53
Due to individuals                                  196
Due to other governments                          3,858                            6,377
Bonds and deposits                                                    813         22,886
 Total liabilities                               $4,066              $855       $29,316




                                                                             (continued)




                                                150
                                   Lee County, Florida
                     COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                  FIDUCIARY FUNDS
                                 As of September 30, 2009
                                 (amounts expressed in thousands)


                                                             Agency Funds



                                                                 Tax
                                             Sheriff           Collector      Total
ASSETS
Cash and equity in pooled
 cash and investments                               $225            $15,590     $55,148
Receivables (net)
 Accounts                                                                15          189
Due from other governments                               2              330          354
 Total assets                                          227           15,935       55,691

LIABILITIES
Contracts and accounts payable                          71                           575
Due to individuals                                     156            4,108        4,460
Due to other governments                                             11,827       23,352
Bonds and deposits                                                                27,304
 Total liabilities                                  $227            $15,935     $55,691




                                              151
                                         Lee County, Florida
                         STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                          AGENCY FUNDS
                                For the Year Ended September 30, 2009
                                        (amounts expressed in thousands)

                                                    Beginning                                    Ending
                                                     Balance        Additions       Deletions    Balance



City of Bonita Springs
 ASSETS
 Cash and equity in pooled cash and investments             $2              $105          $107             $0
   Total assets                                              2               105           107              0
 LIABILITIES
 Due to other governments                                      2             110           112              0
   Total liabilities                                           2             110           112              0


Bonita Springs Road Impact Fees
 ASSETS
 Cash and equity in pooled cash and investments           1,251               86           170        1,167
   Total assets                                           1,251               86           170        1,167
 LIABILITIES
 Contracts and accounts payable                              36               81           115            2
 Due to other governments                                 1,215                             50        1,165
   Total liabilities                                      1,251               81           165        1,167


Construction Management
 ASSETS
 Cash and equity in pooled cash and investments            346              6,897        3,245        3,998
   Total assets                                            346              6,897        3,245        3,998
 LIABILITIES
 Contracts and accounts payable                                             3,637        3,244          393
 Bonds and deposits                                        346              6,914        3,655        3,605
   Total liabilities                                       346             10,551        6,899        3,998


Fire Impact Fees
 ASSETS
 Cash and equity in pooled cash and investments            137               393           404          126
 Receivables (net)                                                             3             2            1
   Total assets                                            137               396           406          127
 LIABILITIES
 Contracts and accounts payable                                                5             3           2
 Due to other governments                                  137               659           671         125
   Total liabilities                                      $137              $664          $674        $127

See accompanying independent auditors' report.                                                   (continued)




                                                         152
                                         Lee County, Florida
                         STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                          AGENCY FUNDS
                                For the Year Ended September 30, 2009
                                        (amounts expressed in thousands)

                                                    Beginning                                     Ending
                                                     Balance        Additions        Deletions    Balance

School Impact Fees
 ASSETS
 Cash and equity in pooled cash and investments         $4,303              $2,716       $2,982       $4,037
 Receivables (net)                                           4                  45           20           29
   Total assets                                          4,307               2,761        3,002        4,066
 LIABILITIES
 Contracts and accounts payable                              14              2,914        2,916           12
 Due to individuals                                         332                 48          184          196
 Due to other governments                                 3,961              2,524        2,627        3,858
   Total liabilities                                      4,307              5,486        5,727        4,066

Cash Bonds
 ASSETS
 Cash and equity in pooled cash and investments           2,142               338         1,625          855
   Total assets                                           2,142               338         1,625          855
 LIABILITIES
 Contracts and accounts payable                                              1,701        1,659           42
 Due to other governments                                    56                              56            0
 Bonds and deposits                                       2,086                362        1,635          813
   Total liabilities                                      2,142              2,063        3,350          855

Clerk of Circuit Court
 ASSETS
 Cash and equity in pooled cash and investments         17,301             374,970      363,121       29,150
 Receivables (net)                                          53                 164           73          144
 Due from other governments                                 11                  59           48           22
   Total assets                                         17,365             375,193      363,242       29,316
 LIABILITIES
 Contracts and accounts payable                            106             141,029      141,082           53
 Due to other governments                                2,641              85,549       81,813        6,377
 Bonds and deposits                                     14,618             146,098      137,830       22,886
   Total liabilities                                    17,365             372,676      360,725       29,316

Sheriff
 ASSETS
 Cash and equity in pooled cash and investments               266            3,865        3,906          225
 Due from other governments                                     1                2            1            2
   Total assets                                               267            3,867        3,907          227
 LIABILITIES
 Contracts and accounts payable                                44               71           44          71
 Due to individuals                                           223            3,160        3,227         156
   Total liabilities                                         $267           $3,231       $3,271        $227
                                                                                                  (continued)


                                                       153
                                        Lee County, Florida
                        STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                         AGENCY FUNDS
                               For the Year Ended September 30, 2009
                                        (amounts expressed in thousands)

                                                    Beginning                                  Ending
                                                     Balance        Additions     Deletions    Balance

Tax Collector
 ASSETS
 Cash and equity in pooled cash and investments        $17,616       $1,219,479   $1,221,505     $15,590
 Receivables (net)                                           9              104           98          15
 Due from other governments                                236              322          228         330
   Total assets                                         17,861        1,219,905    1,221,831      15,935
 LIABILITIES
 Due to individuals                                      3,855          114,038      113,785       4,108
 Due to other governments                               14,006        1,105,866    1,108,045      11,827
   Total liabilities                                    17,861        1,219,904    1,221,830      15,935



Total
 ASSETS
 Cash and equity in pooled cash and investments         43,364        1,608,849    1,597,065      55,148
 Receivables (net)                                          66              316          193         189
 Due from other governments                                248              383          277         354
   Total assets                                         43,678        1,609,548    1,597,535      55,691
 LIABILITIES
 Contracts and accounts payable                            200          149,438      149,063         575
 Due to individuals                                      4,410          117,246      117,196       4,460
 Due to other governments                               22,018        1,194,708    1,193,374      23,352
 Bonds and deposits                                     17,050          153,374      143,120      27,304
   Total liabilities                                   $43,678       $1,614,766   $1,602,753     $55,691




                                                          154
Statistical
 Section




     155
     155
                                       Statistical Section
                                                (unaudited)

The statistical data presents detailed information as a context for understanding Lee County’s
overall financial health.


Contents

Financial Trends
    These schedules contain trend information to help the reader understand how the County’s
    financial performance and well-being have changed over time.

Revenue Capacity
    These schedules contain information to help the reader assess the County’s most significant
    local revenue source, the property tax.

Debt Capacity
    These schedules present information to help the reader assess the affordability of the
    County’s current levels of outstanding debt, and the County’s ability to issue additional debt
    in the future.

Demographic and Economic Information
    These schedules offer demographic and economic indicators to help the reader understand
    the environment within which the County’s financial activities take place.

Operating Information
    These schedules contain service and infrastructure data to help the reader understand how
    the information in the County’s financial report relates to the services the government
    provides, and the activities it performs.



Sources: Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial
Reports for the relevant year.




                                                           156
                                                           156
                                                                                                 Lee County, Florida
                                                                                                    SCHEDULE 1
                                                                                                     NET ASSETS
                                                                                                Last Eight Fiscal Years
                                                                                                (dollars in thousands)


                                                                      2002               2003                2004              2005               2006*              2007              2008               2009
      Governmental Activities
         Invested in capital assets, net of related debt              $538,217          $600,096             $670,833         $769,454            $974,518        $1,148,026         $1,318,137         $1,456,025
         Restricted for:
           Capital projects                                            179,728            214,202              220,591          237,428            346,005            370,932            333,179          324,494
           Debt service                                                 21,334             21,640               22,453           25,742             19,567             21,940             20,138           19,849
           Claibourne and Foulds Trust                                       1                  1                    1
         Unrestricted                                                  240,731            234,752              284,293          357,515             449,732           520,745            527,270           440,397
       Governmental activities net assets                              980,011          1,070,691            1,198,171        1,390,139           1,789,822         2,061,643          2,198,724         2,240,765

      Business-type Activities
         Invested in capital assets, net of related debt               309,741            422,635             540,009           657,657            733,834            860,208            942,028          971,317
         Restricted for:
           Capital projects                                             92,091             93,338              75,726            77,919              92,848            69,877             65,661            56,336




157
           Debt service                                                 69,935             54,455              35,677            30,965              30,706            37,626             40,954            41,207
           Renewal and replacement                                      14,884             15,799              16,924            23,893              24,079            16,547             13,849            13,658
         Unrestricted                                                  182,777            198,513             241,545           228,357             246,428           252,241            258,169           284,602
       Business-type activities net assets                             669,428            784,740             909,881         1,018,791           1,127,895         1,236,499          1,320,661         1,367,120

      Primary Government
         Invested in capital assets, net of related debt               847,958          1,022,731            1,210,842        1,427,111           1,708,352         2,008,234          2,260,165         2,427,342
         Restricted for:
           Capital projects                                            271,819           307,540            296,317             315,347            438,853            440,809            398,840          380,830
           Debt service                                                 91,269            76,095             58,130              56,707             50,273             59,566             61,092           61,056
           Renewal and replacement                                      14,884            15,799             16,924              23,893             24,079             16,547             13,849           13,658
           Claibourne and Foulds Trust                                       1                 1                  1
         Unrestricted                                                  423,508           433,265            525,838            585,872              696,160          772,986            785,439            724,999
       Total primary government net assets                          $1,649,439        $1,855,431         $2,108,052         $2,408,930           $2,917,717       $3,298,142         $3,519,385         $3,607,885


       Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards Board Statement No. 34,
       Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments
       Note: Accounting standards require that net assets be reported in three components in the financial statements: invested in capital assets, net of related debt, restricted, and unrestricted.
       * Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years.
                                                                           Lee County, Florida
                                                                              SCHEDULE 2
                                                                        CHANGES IN NET ASSETS
                                                                          Last Eight Fiscal Years
                                                                          (dollars in thousands)


                                                     2002        2003                 2004          2005        2006*       2007       2008          2009
      Expenses
        Governmental Activities:
           General government                         $110,508    $107,961              $123,068     $130,947    $151,914   $202,104    $240,356     $212,095
           Public safety                               120,421     127,463               150,499      174,137     197,743    228,403     242,867      235,098
           Physical environment                          8,725       8,754                14,619       16,262      22,794     24,951      14,365       16,033
           Transportation                               31,732      54,173                41,246       38,794      45,934     60,292      56,408       65,132
           Economic environment                         13,829      18,244                17,418       19,109      21,649     23,409      25,769       25,126
           Human services                               14,401      19,143                16,015       19,155      20,751     22,947      24,921       25,200
           Culture and recreation                       43,661      49,208                57,436       61,329      63,490     72,903      71,266       67,102
           Interest on long-term debt                   13,441      12,450                11,925       12,763      11,852     13,904      13,007       12,144
         Total governmental activities expenses        356,718     397,396               432,226      472,496     536,127    648,913     688,959      657,930

        Business-type Activities:
           Airport                                      40,686      50,787                52,775       54,242      94,532    100,605      108,382     103,472
           Water and wastewater                         43,722      51,083                65,986       72,222      84,408     91,121       96,895      97,406
           Transit                                      11,354      12,646                14,236       16,855      18,652     21,456       24,805      23,250
           Transportation facilities                    21,956      23,709                21,420       22,887      23,779     26,742       31,430      28,714
           Solid waste                                  46,344      47,993                67,278       52,799      61,196     64,798       75,997      80,101
         Total business-type activities expenses       164,062     186,218               221,695      219,005     282,567    304,722      337,509     332,943
         Total primary government expenses            $520,780    $583,614              $653,921     $691,501    $818,694   $953,635   $1,026,468    $990,873




158
      Program Revenues
        Governmental Activities:
         Charges for services:
           General government                          $34,241     $41,107               $48,446      $69,135     $76,869    $79,183     $75,516      $69,995
           Public safety                                23,756      24,969                29,748       41,645      47,394     48,257      41,546       41,255
           Physical environment                          1,503       1,550                 2,215        2,621       3,309      2,871       2,270        2,125
           Transportation                               10,523       2,547                 2,621        3,470       3,091      2,388       1,393        1,223
           Economic environment                                          3                                                                                  3
           Human services                                1,114       1,299                 1,926        2,302       2,705      3,173       2,976        2,805
           Culture and recreation                        2,708       2,819                 2,886        3,248       3,599      4,484       4,430        4,381
         Operating grants and contributions             34,194      37,274                49,073       45,473      43,793     31,262      31,593       35,215
         Capital grants and contributions               20,929      12,200                15,864       17,136      18,680     17,779      12,711       10,342
         Governmental activities program revenues      128,968     123,768               152,779      185,030     199,440    189,397     172,435      167,344

        Business-type Activities:
         Charges for services:
           Airport                                      44,043      50,838                60,874       80,191      99,430    101,409     101,974       98,570
           Water and wastewater                         46,313      52,574                62,729       66,880      70,670     72,681      89,495       85,707
           Transit                                       1,511       1,874                 2,031        2,520       3,074      3,054       3,100        3,340
           Transportation facilities                    30,247      31,973                33,423       43,846      41,192     41,134      38,097       37,160
           Solid waste                                  53,963      55,860                61,191       62,479      76,510     79,094      84,399       85,281
         Operating grants and contributions              4,673       6,487                20,941        4,763       6,310      5,899       7,347        5,749
         Capital grants and contributions               32,566      62,898                80,444       46,128      59,161     69,501      70,330       46,122
         Business-type activities program revenues     213,316     262,504               321,633      306,807     356,347    372,772     394,742      361,929
         Total primary government program revenues    $342,284    $386,272              $474,412     $491,837    $555,787   $562,169    $567,177     $529,273

                                                                                                                                       (continued)
                                                                                                                              Lee County, Florida
                                                                                                                                 SCHEDULE 2
                                                                                                                           CHANGES IN NET ASSETS
                                                                                                                             Last Eight Fiscal Years
                                                                                                                             (dollars in thousands)


                                                                                           2002                     2003                         2004           2005                      2006*                   2007            2008         2009
      Net (Expense) Revenue*
       Governmental activities                                                              ($227,750)               ($273,628)                  ($279,447)      ($287,466)               ($336,687)              ($459,516)      ($516,524)   ($490,586)
       Business-type Activities                                                                49,254                   76,286                      99,938          87,802                   73,780                  68,050          57,233       28,986
         Total primary government net expense                                               ($178,496)               ($197,342)                  ($179,509)      ($199,664)               ($262,907)              ($391,466)      ($459,291)   ($461,600)

      General Revenues and Other Changes in Net Assets
       Governmental Activities:
           Taxes
             Property taxes                                                                  $216,050                 $248,411                    $289,206        $316,947                 $377,567                $466,026       $463,880     $400,300
             Gas taxes                                                                         15,992                   16,547                      18,060          19,319                   20,124                  19,541         18,260       17,775
             Tourist taxes                                                                     10,834                   11,089                      12,318          11,603                   18,728                  22,986         23,768       21,880
             Communication taxes                                                                6,244                    7,511                       6,528           8,577                    9,518                  10,457         10,946       10,885
             Franchise fees                                                                     5,136                    5,515                       6,031           6,912                    8,836                   9,352          9,161        9,293
           Impact fees                                                                         24,821                   18,365                      20,434          30,954                   68,829                  39,671         14,769        7,003
           Unrestricted grants and contributions                                               31,817                   33,387                      45,103          44,608                   62,618                  76,509         59,471       44,666
           Investment earnings                                                                 15,553                   11,478                       8,169          21,802                   47,806                  64,510         37,376       14,813
           Miscellaneous                                                                       17,922                   15,888                      18,731          24,843                   24,851                  31,233         24,171       15,592
           Transfers                                                                            7,522                   (3,705)                    (17,653)         (6,131)                  (4,464)                 (8,948)        (8,197)      (9,580)
         Total governmental activities general revenues and transfers                         351,891                  364,486                     406,927         479,434                  634,413                 731,337        653,605      532,627




159
        Business-type Activities:
           Property taxes                                                                         1,928                   1,916                         1,697        1,801                    1,783                       2,337       2,036        1,524
           Franchise fees                                                                           868                     782                           931          907                    1,464                       1,535       2,221        1,586
           Investment earnings                                                                    8,171                   5,922                         4,228       10,382                   21,788                      26,770      12,452        3,919
           Gain on sale of capital assets                                                           316                      36
           Miscellaneous                                                                          1,265                     958                          694           1,887                  5,825                        964        2,023           864
           Special Item-Assumption of GES net assets                                                                     25,707
           Transfers                                                                            (7,522)                   3,705                     17,653             6,131                  4,464                       8,948       8,197        9,580
         Total Business-type activities general revenues, special
           item, and transfers                                                                    5,026                  39,026                     25,203          21,108                   35,324                      40,554      26,929       17,473
         Total primary government general revenues,
           special item, and transfers                                                       $356,917                 $403,512                    $432,130        $500,542                 $669,737                $771,891       $680,534     $550,100

      Change in Net Assets
       Governmental activities                                                               $124,141                  $90,858                    $127,480        $191,968                 $297,726                $271,821       $137,081      $42,041
       Business-type activities                                                                54,280                  115,312                     125,141         108,910                  109,104                 108,604         84,162       46,459
         Total primary government                                                            $178,421                 $206,170                    $252,621        $300,878                 $406,830                $380,425       $221,243      $88,500


       Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards Board Statement No. 34,    Basic Financial Statements-
       and Management's Discussion and Analysis-for State and Local Governments
       * Net (expense)/revenue is the difference between the expenses and program revenues of a function or program. It indicates the degree to which a function or program is supported with its own fees and program-
       specific grants versus its reliance upon funding from taxes and other general revenues. Numbers in parentheses indicate that expenses were greater than program revenues and therefore general revenues were
       needed to finance that function or program. Numbers without parentheses mean that program revenues were more than sufficient to cover expenses.
       * Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years.
                                                                                             Lee County, Florida
                                                                                                SCHEDULE 3
                                                                                 FUND BALANCES of GOVERNMENTAL FUNDS
                                                                                            Last Eight Fiscal Years
                                                                                       (amounts expressed in thousands)

                                                            2002                 2003                  2004                   2005            2006 *                 2007                   2008                  2009

General Fund
  Reserved:
     Advances                                                                                                                                  $45,960                 $65,814                $25,947             $18,251
     Inventory                                                 $138                   $144                  $156                  $168             186                     462                    544                 468
  Unreserved, designated for:
     Next fiscal year's expenditures                                                                                            39,695           42,762                 25,622                  20,653             14,870
     Unfunded other post employment
         benefits                                                                                                                                18,000                 16,437                  25,000             25,000
     Roads revolving loan program                                                                                               30,000           31,000                                          1,088              9,821
     Road construction grant                                                                                                                                            10,000                                      1,700
     Unfunded mandates                                                                                                            2,000           2,000                  2,000                   3,000
     Economic incentives                                                                                                          1,500           1,500                  1,500                                        805
     Economic development                                                                                                                                                                       25,000             23,350
     Fort Myers Beach transportation loan                                                                                         1,000           1,000                   1,000
     SWFAS commitment                                                                                                                                                     2,000
     Community Corrections Facility                                                                                                                                                            10,000              10,000
  Unreserved, undesignated                                   87,151                 67,173                91,500                70,036           57,380                123,921                163,804             173,933
Total General Fund                                         $87,289                $67,317               $91,656              $144,399         $199,788               $248,756                $275,036            $278,198



All Other Governmental Funds
  Reserved:
     Advances                                                                       $1,700                $1,700                $1,700                                    $189                    $139            $80,909
     Inventory                                               $1,457                  1,321                 1,854                 2,170           $2,291                  2,321                   1,855              2,647
     Debt service                                            21,078                 21,365                22,173                25,445           24,582                 28,041                  26,160             25,433
     Claibourne & Foulds Trust                                    1                      1                     1
  Unreserved, designated for:
     Next fiscal year's expenditures                                                                                          206,404          279,989                 303,854                274,702             223,136
     Unfunded other post employment
         benefits                                                                                                                                                        4,281
     Conservation 2020                                                                                                          38,975           18,546                 14,628
     Bequests                                                                                                                                                            1,374                   1,418              1,156
     Hurricane contingency                                                                                                       1,930
     Debt service                                             8,357                  8,481                 4,750                 5,238            4,966                   4,371                  5,038              1,521
  Unreserved, undesignated, reported in:
     Special Revenue Funds                                 146,861                165,200               187,079               178,800          238,898                 206,245                235,502              56,871
     Capital Projects Funds                                158,593                188,748               245,803                27,328           38,452                 109,944                 79,663             101,383
Total All Other Governmental Funds                        $336,347               $386,816              $463,360              $487,990         $607,724               $675,248                $624,477            $493,056

Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards Board Statement No. 34,   Basic Financial Statements-
and Management's Discussion and Analysis-for State and Local Governments
* Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years.




                                                                                                                     160
                                                                               Lee County, Florida
                                                                                  SCHEDULE 4
                                                             CHANGES IN FUND BALANCES of GOVERNMENTAL FUNDS
                                                                              Last Eight Fiscal Years
                                                                         (amounts expressed in thousands)

                                                                   2002                2003               2004                2005           2006*              2007              2008              2009
Revenues
   Taxes                                                          $254,254           $289,073            $332,143            $363,358       $434,782          $528,362          $526,015          $460,133
   Licenses and permits                                              9,641             10,772              13,560              19,249         18,660            11,760             5,415             4,257
   Intergovernmental                                                67,747             74,653              95,934              96,031        117,215           107,328            90,618            87,950
   Charges for services                                             49,349             53,902              64,906              82,876         92,684            97,994            92,123            87,878
   Fines and forfeitures                                             2,634              3,492               3,286               1,533          1,749             2,236             2,073             1,393
   Impact fees                                                      24,758             18,365              20,434              30,954         68,830            39,671            14,769             7,003
   Special assessments                                               2,475              2,129               3,120               4,044          2,491             2,075             2,024             1,515
   Miscellaneous                                                    31,982             32,589              29,694              54,055         74,102            91,788            59,019            34,034
       Total revenues                                              442,840            484,975             563,077             652,100        810,513           881,214           792,056           684,163

Expenditures
   Current
       General government                                           95,236              88,890            103,334             105,547        119,119           142,153           161,143           181,728
       Public safety                                               114,462             121,566            141,274             165,699        189,841           217,040           236,717           228,742
       Physical environment                                          8,283               7,899             13,565              15,119         22,357            24,618            13,698            15,351
       Transportation                                               23,300              32,611             32,701              29,797         37,127            49,940            44,826            51,459
       Economic environment                                         13,503              17,589             17,309              19,025         21,509            23,299            25,629            25,190
       Human services                                               13,745              15,307             15,410              18,501         20,155            22,291            24,382            24,804
       Culture and recreation                                       38,043              43,633             53,081              56,474         58,049            67,007            65,381            60,737
   Capital outlay                                                   67,104              84,702             90,935             126,643        232,694           241,054           199,458           182,787
   Debt service
       Principal retirement                                          17,865             19,884             23,125              25,058          20,221           20,567             24,008            20,283
       Interest and fiscal charges                                   13,317             12,421             10,905              11,936          12,137           13,954             14,770            11,693
       Bond issuance costs                                                                                  1,872                 422                            1,031
           Total expenditures                                      404,858             444,502            503,511             574,221        733,209           822,954           810,012           802,774
Excess (deficiencies) of revenues
   over (under) expenditures                                         37,982             40,473              59,566             77,879          77,304            58,260           (17,956)         (118,611)

Other Financing Sources (Uses)
   Transfers in                                                      88,386            111,649             94,281              95,542        136,592           142,010           136,352            297,958
   Transfers out                                                    (85,746)          (124,222)          (111,224)           (101,319)      (142,188)         (154,103)         (146,090)          (308,062)
   Surplus to state and other local governments                                                            (1,791)
   Insurance proceeds                                                                                                                65              94
   Proceeds from capital leases                                         242
   Bond premium                                                                                                                 1,132
   Proceeds from long-term debt                                       1,665               2,775           115,491              31,696           1,365            70,325             3,203               456
   Payments to refunding escrow agent                                                                     (55,440)            (27,622)
      Total other financing sources (uses)                            4,547              (9,798)           41,317                (506)         (4,137)           58,232            (6,535)           (9,648)

Net change in fund balances                                        $42,529             $30,675           $100,883             $77,373        $73,167          $116,492          ($24,491)        ($128,259)

Debt service as a percentage of
  noncapital expenditures                                               9.2%               9.0%                8.7%               8.4%            6.5%             6.1%              6.4%               5.2%

Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements-
and Management's Discussion and Analysis-for State and Local Governments


* Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years.




                                                                                                         161
                                                                                            Lee County, Florida
                                                                                               SCHEDULE 5
                                                                       Assessed Value and Estimated Actual Value of Taxable Property
                                                                                            Last Ten Fiscal Years
                                                                                           (dollars in thousands)

                                                                                                              Less:                                                                Assessed Value
                                                Real Property                                              Tax Exempt       Total Taxable     Total Direct   Estimated Actual     as a Percentage of
                                                                                                                                                                                                 1
          Fiscal Year   Residential Property    Commercial Property    Other       Personal Property       Real Property    Assessed Value     Tax Rate       Taxable Value         Actual Value

             2000                 $18,906,436             $4,054,140    $483,421           $1,813,495          $5,926,907       $19,330,585      $23.7426           $31,184,986        80.99%
             2001                  21,056,101              4,356,799     510,814            1,993,614           6,419,037        21,498,291       24.5212            34,371,145        81.22%
             2002                  24,196,619              4,835,958     584,619            2,256,562           7,380,178        24,493,580       26.1369            39,406,325        80.88%
             2003                  28,601,778              5,100,577     612,303            2,598,152           9,130,847        27,781,963       26.0916            46,222,203        79.86%
             2004                  33,974,995              5,463,467     711,938            3,040,545          11,134,146        32,056,799       25.5880            54,486,377        79.27%
             2005                  40,146,873              6,101,600     758,194            3,248,635          13,644,616        36,610,686       24.7705            64,109,276        78.39%
             2006                  51,598,837              7,988,437   1,021,789            3,455,695          18,280,190        45,784,568       23.7771            82,578,117        77.58%
             2007                  73,753,174             11,065,933     990,847            3,850,680          28,459,057        61,201,577       21.9282           118,369,446        75.75%
             2008                  78,264,100             12,649,523   1,212,764            4,122,676          28,724,259        67,524,804       20.4350           125,483,375        76.70%
             2009                  66,592,240             12,757,889   1,250,737            3,927,562          25,496,141        59,032,287       21.4526           110,753,036        76.32%

      Source: Lee County Property Appraiser

      1
          Includes tax-exempt property




162
                                                                                                                                                       Lee County, Florida
                                                                                                                                                         SCHEDULE 6
                                                                                                                                PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
                                                                                                                                               (PER $1,000 OF ASSESSED VALUE)
                                                                                                                                                      Last Ten Fiscal Years

                                                                                                                               2000              2001              2002               2003           2004             2005              2006          2007          2008          2009


                                                      Operating millage                                                       4.4751            4.3277            4.3277             4.3277         4.3277           4.2610            3.9332        3.5216        3.6506        3.6506
                                                      Debt service millage                                                    0.0000            0.0000            0.0000             0.0000         0.0000           0.0000            0.0000        0.0000        0.0000        0.0000
                                                      Capital improvements millage                                            1.0124            1.0124            1.0124             1.0124         1.0124           1.0124            1.0124        0.9536        0.5000        0.5000




                       Lee County
                                                      Total Lee County millage                                                5.4875            5.3401            5.3401             5.3401         5.3401           5.2734            4.9456        4.4752        4.1506        4.1506
                                                      School District                                                         8.9410            8.7980            8.4780             8.5720         8.3460           8.0650            7.8820        7.0120        6.9600        6.8680

                                                      Operating millage                                                       5.9873            5.9873            5.8033             5.8033         5.6831           5.5287            5.2787        4.8787        4.7698        4.7698
                                                      Debt service millage                                                    0.8605            0.7914            0.7144             0.5712         0.4218           0.2311            0.1119        0.0627        0.0627        0.0627




                       Cape Coral
                                                      Total Cape Coral millage                                                6.8478            6.7787            6.5177             6.3745         6.1049           5.7598            5.3906        4.9414        4.8325        4.8325

                                                      Operating millage                                                       1.9181            1.7291            1.7291             1.7291         1.7291           2.5000            2.4801        2.5000        2.1966        2.1561
                                                      Debt service millage                                                    0.3638            0.3279            0.2607             0.4901         0.3870           0.2893            0.3218        0.3983        0.1467        0.4199




                       Sanibel

      Municipalities
                                                      Total Sanibel millage                                                   2.2819            2.0570            1.9898             2.2192         2.1161           2.7893            2.8019        2.8983        2.3433        2.5760

                                                      Fort Myers                                                              5.7820            5.7820            7.7816             7.7816         7.7816           7.2100            7.2100        6.8000        6.2560        7.1634




163
                                                      Fort Myers Beach                                                        1.0961            1.0961            1.0400             1.0400         1.0000           0.8500            0.7498        0.6096        0.6053        0.7093




                       Other
                                                                         1
                                                      Bonita Springs                                                          0.0000            1.2200            1.2200             1.0885         0.9976           0.9976            0.9976        0.7919        0.7244        0.8273

                                                      Total municipalities millage                                           16.0078            16.9338           18.5491           18.5038        18.0002           17.6067           17.1499      16.0412       14.7615        16.1085

                                                      South Florida Water Management Dist.                                    0.6970            0.6970            0.6970             0.6970         0.6970           0.6970            0.6970        0.6970        0.6240        0.6240
                                                      Lee County Hyacinth Control                                             0.0360            0.0358            0.0358             0.0327         0.0295           0.0300            0.0295        0.0223        0.0214        0.0214
                                                      Lee County Mosquito Control                                             0.3792            0.3595            0.3595             0.3294         0.2984           0.2720            0.2247        0.1695        0.1636        0.1636
                                                      West Coast Inland Waterway                                              0.0400            0.0400            0.0400             0.0400         0.0400           0.0400            0.0400        0.0400        0.0394        0.0394
                                                      MSTU (Unincorporated)                                                   1.2114            1.2114            1.2114             1.2114         1.2114           1.2114            1.0028        0.9300        0.8398        0.8398
                                                      Lee County Library                                                      0.9630            0.9630            0.9630             0.9630         0.9630           0.6055            0.6055        0.4085        0.3972        0.2844
                                                      Total special districts millage                                         3.3266            3.3067            3.3067             3.2735         3.2393           2.8559            2.5995        2.2673        2.0854        1.9726




                       Lee County Special Districts
                                                                                 2
                                                      Other special districts                                              .1708-6.000        .0079-6.000       .0509-6.000       .0044-6.000    .0438-6.000       .0011-6.000       .0012-6.000   .0462-6.000   .0245-3.000   .0245-3.4500
                                                                                                3
                                                      Total direct and overlapping rates                                     33.7629            34.3796           35.6739           35.6894        34.9266           33.8020           32.5780      29.7947       27.9575        29.0997

                                                      1
                                                          Bonita Springs incorporated during 2000 therefore there is no prior years' data available.
                                                      2
                                                          Includes fire protection districts and lighting and improvement districts located throughout the unincorporated sections of Lee County.
                                                      3
                                                          Does not include Other special districts since reported as a range. Overlapping rates are those of Lee County that apply to property owners within Lee County. Not all overlapping
                                                          rates apply to all Lee County property owners (e.g. special assessments only apply to the property owners located in that district).

                                                      Source: Lee County Budget Office
                                                       Lee County, Florida
                                                          SCHEDULE 7
                                               PRINCIPAL PROPERTY TAXPAYERS
                                                 Current Year and Nine Years Ago
                                                      (dollars in thousands)




                                                       2009                                      2000
                                                                 Percentage of                          Percentage of
                                        Taxable                  Total Taxable     Taxable              Total Taxable
                                        Assessed                   Assessed        Assessed               Assessed
Taxpayer                                 Value         Rank         Value           Value        Rank      Value


TRG Oasis LTD                              $186,404      1            0.306%
Coconut Point Developers LLC                134,310      2            0.221%
Christian & Missionary Alliance, Inc.       103,683      3            0.170%
Gulf Coast Town Center CMBS                  98,520      4            0.162%
Edison Mall Business Trust                   81,213      5            0.133%           $88,347    1        0.350%
Target Corporation                           74,018      6            0.122%
Residences at Coconut Point                  65,992      7            0.108%
Tarpon Point Associates LLC                  65,436      8            0.107%
Miromar Outlet West LLC                      65,256      9            0.107%
Bell Tower Shops LLC                         60,262     10            0.099%
Merry Land & Investment Co., Inc.                                                       53,884    2        0.213%
US Home                                                                                 43,735    3        0.173%
Gatorland Vistas, Inc.                                                                  41,005    4        0.162%
Long Bay Partners LLC                                                                   38,296    5        0.152%
WCI Communities                                                                         36,884    6        0.146%
Gasparilla Inn, Inc.                                                                    36,682    7        0.145%
TGM Gulfstream, Inc                                                                     32,825    8        0.130%
WestBay Club Development Corp.                                                          32,823     9       0.130%
Meristar SS Plantation Company, LLC                                                     29,837    10       0.118%
Total                                      $935,094                   1.535%          $434,318             1.719%



Source: Lee County Property Appraiser




                                                                164
                                                                    Lee County, Florida
                                                                       SCHEDULE 8
                                                          PROPERTY TAX LEVIES AND COLLECTIONS
                                                                    Last Ten Fiscal Years
                                                                   (dollars in thousands)




                                                             Collected within the
             Fiscal Year          Taxes Levied              Fiscal Year of the Levy                Collections           Total Collections to Date
               Ended                 for the                               Percentage            in Subsequent                          Percentage
                                                                   2
            September 30           Fiscal Year1            Amount            of Levy                  Years             Amount           of Levy

                 2000                  $181,814              $174,167          95.79%                       $834        $175,001           96.25%
                 2001                   192,595               184,800          95.95%                        657         185,457           96.29%
                 2002                   219,911               211,175          96.03%                        604         211,779           96.30%
                 2003                   255,095               244,304          95.77%                        686         244,990           96.04%
                 2004                   297,850               285,130          95.73%                        288         285,418           95.83%
                 2005                   326,026               312,673          95.90%                         33         312,706           95.91%
                                                                                                                    3




165
                 2006                   388,369               372,541          95.92%                       (169)        372,372           95.88%
                                                                                                                    3
                 2007                   479,590               460,870          96.10%                        (23)        460,847           96.09%
                 2008                   478,895               458,933          95.83%                        992         459,925           96.04%
                 2009                   413,173               394,828          95.56%                                    394,828           95.56%


        1
            These tax levies are for funds for County purposes, excluding School Board, municipalities, and other independent special districts.
        2
            Property taxes become due and payable on November 1 of each year and are delinquent on April 1 of the following year. A four percent discount
            is allowed if the taxes are paid in November, with the discount declining by one percent each month thereafter. Accordingly, taxes collected will
             not equal 100 percent of the tax levy. Tax certificates for the full amount of any unpaid taxes and assessments must be sold no later than June 1
            of the following year.
        3
            Collections are negative due to Value Reductions for the tax roll.

      Source: Lee County Tax Collector
                                                                                                       Lee County, Florida
                                                                                                          SCHEDULE 9
                                                                                             RATIO OF OUTSTANDING DEBT BY TYPE
                                                                                                       Last Ten Fiscal Years
                                                                                                      (dollars in thousands)



                                                      General Bonded Debt                                                                                              Other Governmental Activities Debt
                                                                                                                Percentage of
                                                                                                                  Estimated
                      Capital                              Tourist           Certificates                       Actual Taxable                         Special
      Fiscal          Revenue            Gas Tax         Development               of                             Property           Per             Assessment          Commercial                         Capital
                                                                                                                                           3
      Year             Bonds1             Bonds           Tax Bonds         Participation          Total            Value2          Capita             Bonds               Paper              Notes         Leases

      2000               $171,038          $66,305               $9,790           $21,515          $268,648         0.86%             0.61                  $5,245                $100            $5,071         $8,001
      2001                163,003           62,565                9,415            20,235           255,218         0.74%             0.56                   3,890                 450             4,672          6,526
      2002                153,888           58,655                9,025            18,835           240,403         0.61%             0.51                   2,910               1,640             4,399          5,176
      2003                144,303           54,575                8,615            17,385           224,878         0.49%             0.45                   1,755               3,225             3,776          3,531
      2004                189,603           50,343                8,195            15,865           264,006         0.48%             0.51                   1,075               2,650             3,234          1,832
      2005                178,688           46,653                7,650            14,275           247,266         0.39%             0.45                     475                                 5,207             57
      2006                167,863           41,567                7,120            12,615           229,165         0.28%             0.39                                       1,365             3,320              5
      2007                220,703           36,385                6,580            10,805           274,473         0.23%             0.45                                       2,800             3,006
      2008                209,443           31,010                6,020             6,125           252,598         0.20%             0.40                                         640             4,846
      2009                197,668           25,430                5,440             5,020           233,558         0.21%             0.38                                           0             4,699



                                                                             Business-Type Activities Debt
                       Port              Solid          Transportation       Water and      Sewer District




166
                      Authority          Waste             Facilities        Wastewater        General                                                                      Total           Percentage
      Fiscal          Revenue           Revenue            Revenue            Revenue        Obligation          Commercial                            Capital            Primary           of Personal      Per
                                                                                                                                                                                                     3             3
      Year             Bonds             Bonds              Bonds              Bonds            Bonds              Paper             Notes             Leases            Government4         Income         Capita

      2000               $427,730         $187,900             $165,215          $151,950            $4,610                $3,000      $13,157                   $35        $1,240,662        10.56%          2.81
      2001                422,465          181,145              160,360           147,055             3,570                   750       20,099                     7         1,206,207         9.63%          2.65
      2002                408,670          167,100              156,930           142,020             1,870                             29,533                               1,160,651         8.47%          2.44
      2003                406,150          157,720              152,505           202,850             1,280                             24,862                               1,182,532         8.23%          2.39
      2004                403,530          146,805              151,190           197,980                                  20,000       21,444                               1,213,746         7.76%          2.33
      2005                396,030          135,415              210,935           192,915                                  16,400       24,598                   126         1,229,424         6.44%          2.24
      2006                389,800          204,005              205,185           187,655                                  26,400       39,169                    79         1,286,148         6.20%          2.20
      2007                389,800          191,965              198,600           182,170                                  32,712       37,002                    30         1,312,558         5.41%          2.13
      2008                 381,660          179,345              191,785           177,365                                 31,878        36,823                              1,256,940         4.81%          2.02
      2009                 373,145          165,755              185,390           172,405                                 20,500        47,918                              1,203,370         4.88%          1.96


                   Note - Details regarding the County's outstanding debt can be found in the notes to the financial statements.

               1
                   Excludes accreted interest of $9,312,000
               2
                   See Schedule 5 for property value data.
               3
                   See Schedule 11 for personal income and population data for 2000 through 2009. These ratios are calculated using personal income and population for the prior calendar year.
               4
                   Includes general bonded debt, other governmental activities debt, and business-type activities debt..

                   Source: Lee County Clerk of Courts Finance and Records Department
                                                                                                                                 Lee County, Florida
                                                                                                                                   SCHEDULE 10
                                                                                                                         PLEDGED REVENUE BOND COVERAGE
                                                                                                                                 Last Ten Fiscal Years
                                                                                                                                (dollars in thousands)

                                                                                                                                                                                                                                         2
                                                        Passenger Facility Charge Revenue Bonds                                                                                                          Port Authority Line of Credit
                      Passenger                                                                                                                               Page Field
                       Facility              Less:                 Net                                                                                      General Aviation                 Less:              Net
      Fiscal           Charge              Operating             Available                     Debt Service                                                     Airport                    Operating          Available                 Debt Service
                                                   1                                                                                                                                               1
      Year            Revenues             Expenses              Revenues               Principal         Interest              Coverage                       Revenues                    Expenses           Revenue             Principal          Interest         Coverage

      2000              $6,724                n/a                  $6,724                $1,640              $2,392                1.67
      2001               7,236                n/a                   7,236                 1,705               2,328                1.79
      2002               6,488                n/a                   6,488                 1,770               2,257                1.61
      2003               7,930                n/a                   7,930                 1,845               2,182                1.97
      2004              12,878                n/a                  12,878                 1,920               2,103                3.20
      2005              15,615                n/a                  15,615                 2,005               2,018                3.88                           $7,129                    $5,853             $1,276                                       $59        21.63
      2006              15,567                n/a                  15,567                 2,090               1,927                3.88                            8,026                     6,974              1,052               $230                    317         1.92
                                                                                                                                                                                   3                                                              3
      2007              16,858                n/a                  16,858                 2,185               1,830                4.20                           12,334                     7,996              4,338               4,338                   400         0.92
      2008              15,478                n/a                  15,478                 2,285               1,727                3.86                            8,904                     8,678               226                 295                    164         0.49
      2009              14,942                n/a                  14,942                 2,390               1,618                3.73                            6,485                     6,325               160                 305                    71          0.43

                                                               Port Authority Revenue Bonds                                                                                                            Solid Waste System Revenue Bonds
                                             Less:                  Net                                                                                       Solid Waste                    Less:               Net
      Fiscal           Airport             Operating            Available                Debt Service                                                            System                    Operating          Available               Debt Service
                                                                                                                                                                           7
      Year            Revenues             Expenses              Revenues               Principal            Interest           Coverage                        Revenues                   Expenses1          Revenue             Principal            Interest       Coverage




167
                                      4                   5
      2000             $36,951              $21,290               $15,661                $3,070              $3,488                2.39                          $56,667                   $27,101             $29,566             $5,950              $12,558          1.60
                                      4                   5
      2001              37,713               28,273                 9,440                 3,275               3,275                1.44                           60,204                    29,335              30,869              6,755                  12,149       1.63
                                      4                   5
      2002              34,848               26,774                 8,074                 3,495               3,043                1.23                           58,264                    30,275              27,989              7,640                  9,937        1.59
                                      4                   5
      2003              39,656               29,995                 9,661                 7,883               1,668                1.01                           60,168                    30,394              29,774              9,380                  8,308        1.68
                                      4                   5                                                                                                                                              8
      2004              43,184               31,209                11,975                 4,856               1,524                1.88                           64,674                    33,905              30,769              10,915                 7,882        1.64
                                      6                   5                                                                                                                                              8
      2005              62,657               33,902                28,755                 4871                13,648               1.55                           67,356                    35,659              31,697              11,390                 7,369        1.69
                                      6                   5
      2006              87,911               47,573                40,338                 5,410               20,507               1.56                           82,864                    44,399              38,465              11,940                 6,918        2.04
                                      6                   5
      2007              86,661               51,679                34,982                 5,670               20,196               1.35                           88,584                    48,793              39,791              12,040                 9,473        1.85
                                      6                   5
      2008              88,587               54,941                33,646                 5,855               19,972               1.30                           89,490                    54,022              35,468              12,620                 9,521        1.60
                                      6                   5
      2009              84,763               52,175                32,588                 6,125               19,611               1.27                           87,919                    56,530              31,389              13,590                 8,846        1.40

                   Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.
               1
                   As defined by bond resolutions - Generally, current operating expense which doesn't include interest expense, depreciation or amortization expense.
               2
                   Ten years of data are not provided as the Line of Credit was issued in 2004.
               3
                   Additional principal payment was made in 2007 with funds transferred from the Airport discretionary fund. Amount in Revenues column includes the transferred amount.
               4
                   As defined by bond resolutions - Generally, all revenues generated from the operation of Southwest Florida International Airport, with the exception of passenger facility charges and grants.
               5
                   As defined by bond resolutions - Generally, current operating expense of Southwest Florida International Airport which includes arbitrage rebate liability and does not include interest expense, depreciation, unpaid Other Post
                   Employment Benefits expense or rebates.
               6
                   As defined by bond resolutions - Generally, all revenues generated from the operation of Southwest Florida International Airport with the exception of passenger facility charges and grants but including surplus passenger facility
                   charges per Federal Aviation Administration approvals.
               7
                   As defined by bond resolutions - Generally, all revenues generated from the operation of the Waste - to - Energy Facility, the landfill, and the collection services.
               8
                   Excludes expense related to hurricane damage which is treated in the financial statements as non-operating expense.


                                                                                                                                                                                                                                                                    (continued)
                                                                                                                       Lee County, Florida
                                                                                                                          SCHEDULE 10
                                                                                                               PLEDGED REVENUE BOND COVERAGE
                                                                                                                       Last Ten Fiscal Years
                                                                                                                      (dollars in thousands)

                                                       Water and Wastewater Revenue Bonds                                                                                         Transportation Facilities Revenue Bonds
                    Water and             Less:               Net                                                                                Transportation             Less:              Net
      Fiscal        Wastewater          Operating          Available                Debt Service                                                    Facilities            Operating         Available                 Debt Service
                                                2                                                                                                                                 2
      Year          Revenues1           Expenses           Revenues          Principal         Interest                 Coverage                   Revenues3              Expenses          Revenue             Principal         Interest          Coverage

      2000             $53,089           $21,192              $31,897              $3,940             $7,431               2.81                     $29,833                 $5,873                $23,960             $3,580       $9,764             1.80
      2001              55,010            21,849               33,161               5,935              7,220               2.52                      31,884                  6,430                 25,454              3,750        9,590             1.91
      2002              51,144            23,348               27,796               6,735              6,968               2.03                      30,630                  6,911                 23,719              3,430        7,646             2.14
      2003              55,665            27,545               28,120               5,285              6,680               2.35                      32,297                  9,193                 23,104              4,425        8,328             1.81
      2004              65,229            34,231               30,998               6,150              8,667               2.09                      33,937                  8,453                 25,484              4,755        7,029             2.16
      2005              71,495            42,108               29,387               5,065              9,112               2.07                      45,164                  9,856                 35,308               5,415       6,720             2.91
      2006              78,990            50,699               28,291               5,260              8,888               2.00                      44,549                  10,808                33,741               5,750       9,182             2.26
      2007              81,898            55,143               26,755               5,485              8,650               1.89                      43,959                  13,129                30,830               6,585       9,621             1.90
      2008              95,382            56,882               38,500               4,805              8,449               2.90                      39,395                  11,864                27,531               6,815       9,396             1.70
      2009              88,089            57,085               31,004               4,960              8,287               2.34                      37,856                  10,158                27,698               6,395       9,182             1.78



                                            Florida Department of Environmental Protection Loans
                    Water and             Less:            Net
      Fiscal        Wastewater          Operating       Available                Debt Service
                             1




168
      Year          Revenues            Expenses2        Revenues         Principal         Interest                    Coverage

      2000             $53,089           $21,192              $31,897               $436               $285                44.24
      2001              55,010            21,849               33,161                452                269                45.99
      2002              51,144            23,348               27,796                469                252                38.55
      2003              55,665            27,545               28,120                486                235                39.00
      2004              65,229            34,231               30,998                504                217                42.99
      2005              71,495            42,108               29,387                522                199                40.76
      2006              78,990            50,699               28,291                541                180                39.24
      2007              81,898            55,143               26,755                727                220                28.25
      2008              95,382            56,882               38,500               1,391               473                20.65
      2009              88,089            57,085               31,004               1,805               750                12.13

                   Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest, depreciation or amortization expenses.
               1
                   As defined by bond resolutions - Generally, all revenues generated from the operation of the Lee County Water and Wastewater System. The pledge of these revenues to the FDEP loan is subordinate to the revenue bonds pledge.
               2
                   As defined by bond resolutions - Generally, current operating expense which doesn't include interest expense, depreciation or amortization expense.
               3
                   As defined by bond resolutions - Generally, all revenues generated from the operation of the Lee County Transportation Facilities, including but not limited to toll revenues and investment earnings.


                   Source: Lee County Clerk of Courts Finance and Records Department
                                                                   Lee County, Florida
                                                                     SCHEDULE 11
                                                          DEMOGRAPHIC AND ECONOMIC STATISTICS
                                                                   Last Ten Fiscal Years



                                            Total                                                                             Unemployment Rates
                                                                                                                                              2
                                         Personal          Per Capita                                                            (Percentage)
                                          Income2          Personal          Median             School
                          1
      Year   Population               (in thousands)        Income2           Age2            Enrollment3            County          State         National

      2000     440,888                 $11,754,074           $26,660           45.3              58,700                2.6            3.6            4.0
      2001     454,918                 12,519,798             27,521           45.2              60,553                3.2            4.8            4.7
      2002     475,073                 13,706,331             28,851           45.6              61,274                4.0            5.5            5.8
      2003     495,088                 14,375,870             29,037           45.6              62,566                4.0            5.1            6.0
      2004     521,253                 15,644,366             30,013           45.8              70,782                4.0            4.6            5.1
      2005     549,442                 19,098,604             34,760           44.2              75,558                2.9            3.7            4.8
      2006     585,608                 20,736,965             35,411           43.7              78,775                2.7            3.4            4.4
      2007     615,741                 24,266,353             39,410           43.2              80,526                5.2            4.3            4.5
      2008     623,725                 26,111,623             41,864           42.7              79,457                9.2            6.8            6.0
      2009     615,124                 24,674,348             41,954           42.7              80,161               13.9           11.1            9.8




169
                              1
                Sources:          Bureau of Economic and Business Research. Population Estimated for April 1, 2009
                              2
                                  Florida Research and Economic Database (FRED)
                              3
                                  District School Board of Lee County.
                                                           Lee County, Florida
                                                              SCHEDULE 12
                                                        PRINCIPAL EMPLOYERS
                                                     Current Year and Nine Years Ago




                                                                    2009*                                      2000
                                                                             Percentage of                            Percentage of
                                                                             Total County                             Total County
Employer                                           Employees      Rank       Employment      Employees    Rank        Employment

Lee County School District                            10,405        1           4.43%             8,026    1             3.99%
Lee Memorial Health System                             8,600        2           3.67%             4,600    2             2.29%
Publix Super Markets                                   4,215        3           1.80%             2,839    3             1.41%
Lee County Administration **                           2,559        4           1.09%             2,165    4             1.08%
Wal-Mart Corporation                                   2,071        5           0.88%             1,850    5             0.92%
City of Cape Coral                                     1,700        6           0.72%             1,370    6             0.68%
Lee County Sheriff's Office                            1,544        7           0.66%
U.S. Postal Service                                    1,397        8           0.60%
Florida Gulf Coast University                          1,292        9           0.55%
Bonita Bay Group                                       1,035       10           0.44%
Meristar Corporation                                                                              1,250    7             0.62%
Florida Department of Children and Families                                                       1,182    8             0.59%
Southwest Regional Medical Center                                                                 1,030    9             0.51%
WCI Communities                                                                                   1,007   10             0.50%

Total                                                 34,818                    14.84%           25,319                  12.59%



* As of October, 2009
**
  2000 figure includes Lee County Port Authority personnel.

Source: Lee County Office of Economic Development, and Florida Research and Economic Database.




                                                                     170
                                                             Lee County, Florida
                                                               SCHEDULE 13
                                                GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
                                                            Last Eight Fiscal Years


                                               2002            2003            2004            2005            2006            2007               2008    2009

Function/Program
   Governmental activities:
     General government                       1,089           1,137          1,153           1,271            1,363           1,416           1,402      1,426
     Public safety                            1,445           1,552          1,651           1,827            1,981           1,961           1,979      1,942
     Physical environment                        73              73              79              85              90              90                85      80
     Transportation                             212            229             234             247              267             271               252     255
     Economic environment                        50              53              59              64              68              66                61      61
     Human services                              50              55              57              65              64              67                68      68
     Culture and recreation                     434            450             520             546              562             566               517     504
   Business-type activities:
     Airport                                    261            269             282             319              342             359               355     347
     Water and wastewater                       179            196             256             279              291             291               281     281
     Transit                                    163            166             169             239              254             257               257     257
     Transportation facilities                  130            125             132             132              125             114               101      98
     Solid waste                                 21              30              36              55              71              71                71      72

        Total                                 4,107           4,335          4,628           5,129            5,478           5,529           5,429      5,391




 Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting
 Standards Board Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments .


 Sources: Lee County Budget Office, Lee County Sheriff Finance Department, Lee County Clerk of Circuit Court Human
 Resources Department, Lee County Property Appraiser Finance Department, Lee County Tax Collector Human
 Resources Department, Lee County Supervisor of Elections Human Resources Department, Lee County Port Authority
 Human Resources Department, and 20th Judicial Circuit Court Finance Department




                                                                               171
                                                                                       Lee County, Florida
                                                                                         SCHEDULE 14
                                                                         OPERATING INDICATORS BY FUNCTION/PROGRAM
                                                                                      Last Eight Fiscal Years


                                                                                     2002             2003             2004             2005              2006             2007              2008           2009
Function/program

Community Development
 Building Permits Issued                                                               55,000           61,000           92,000          122,000          119,000            84,414            36,916        25,513
 Inspections                                                                          150,000          200,000          237,500          290,000          360,600           230,574            88,965        50,391

Public Safety/EMS 1
 E-911 calls processed                                                                115,287          123,864          143,160          147,730          155,450           155,482          162,630        220,338
                        2
Sheriff Department
 Physical arrests                                                                      13,645           14,597           15,233           15,007            17,856           19,887            22,777        18,296
 Traffic tickets                                                                       38,056           37,529           40,718           44,158            64,272           67,885            68,054        50,917

Natural Resources
 Environmental lab tests performed                                                     76,657           77,327           88,449           96,049          106,670           106,435          111,392        114,223
 Pollutant storage tanks inspections                                                      727              780              858              860              673               932            1,058            944

Solid Waste
    Number of business and residential customers 3                                    183,335          191,041          196,889          216,804          225,711           240,874          245,257        246,240
    Volume of solid waste collection (tons per year) 4                                444,147          486,486          533,754          581,000          605,747           559,484          517,889        467,008
    Volume of recycling collection (tons per year) 5                                   35,655           39,853           44,209           46,802           51,651            53,782           56,355         51,992
    Megawatt hours of electricity sold                                                215,468          231,296          229,479          236,533          218,399           222,005          293,805        298,618

Water and Wastewater
Water customers                                                                        55,151           68,243           71,241           73,670            77,149           78,961            79,536        80,072
Wastewater customers                                                                   39,408           46,528           48,830           51,774            55,668           57,535            57,908        58,422
Meter installations                                                                     1,627            2,149            3,531            3,754             3,493            1,914               630           537

Department of Transportation
 Number of signal and flasher locations maintained                                        410               419              425              433              453               459                 472         486
 Number of streetlights maintained                                                      1,632             2,052            2,138            2,138            2,194             3,380               4,314       4,358
 Number of Driveway and ROW permits issued                                              2,369             2,761            4,128            6,435            7,601             3,758               1,071         772
 Asphalt road resurfacing (in thousands of tons)                                           59                58               61               83               54                35                  47          44

Bridges
 Toll paying traffic per year
  Sanibel                                                                          3,406,557        3,249,378        3,192,595         2,910,454        2,835,333        2,889,783         2,925,251       2,906,743
  Mid-point Memorial6                                                             14,880,050       15,795,078       16,578,145        17,958,287       17,981,689       17,571,604         8,347,488       7,505,751
  Cape Coral6                                                                     14,747,594       15,423,942       16,303,265        17,355,653       17,450,273       17,263,048         8,544,776       7,096,132

Transit
 Number of bus passenger trips                                                     2,240,545         2,335,842        2,512,886        2,821,676        2,891,968         3,037,194        3,061,461       3,047,457
 Number of bus route miles                                                               414               418              418              418              418               418              416             417

Port Authority
 Number of enplanements                                                            2,618,297         2,973,330        3,393,275        3,741,071        3,803,563         4,061,936        3,868,588       3,737,339
 Number of deplanements                                                            2,567,351         2,918,338        3,343,355        3,678,511        3,749,462         4,009,718        3,826,610       3,719,794

Human Services
 Number of emergency services provided with General
  Fund County Service dollars (mortgage, rent, utilities, etc.)                         1,053                874              876              525               602              617               628            744

Animal Services
 Officer responses                                                                     17,548           23,663           18,549           18,209            19,285           21,906            24,383        17,273
 Animal placement                                                                       3,969            3,827            3,050            2,987             3,255            3,354             2,767         2,548

Library
 Cardholders                                                                         196,523           209,618          223,376          243,917          257,032           280,879          302,025         295,181
 Items available for circulation                                                   1,077,870         1,132,113        1,211,717        1,238,611        1,347,502         1,384,045        1,410,281       1,537,777
 Total circulation                                                                 3,164,773         3,628,490        3,618,912        3,171,641        3,484,762         4,059,126        4,942,611       5,492,287

Parks and Recreation
 Number of public parks maintained                                                          60                58               59               65                65               65                65             64
 Number of public pools maintained                                                           9                 9                9                9                 9                9                 9              9
 Number of public boat ramps maintained                                                      5                 5                5                6                 7                7                 7              7


Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards Board Statement No. 34, Basic Financial
Statements-and Management's Discussion and Analysis-for State and Local Governments .


Source: Various Lee County Departments
1
    Based on calendar year.
2
    Fiscal Year is the year the Sheriff published the statistics for 2002 to 2004. 2005 and following years are based on the BOCC fiscal year.
3
    Unincorporated Lee County, the City of Bonita Springs, and Town of Fort Myers Beach.
4
    Total solid waste processed and landfilled for unincorporated Lee County, Hendry County, and the cities of
    Sanibel, Fort Myers, Cape Coral, Bonita Springs, and Fort Myers Beach.
5
    Total tons recycled for unincorporated Lee County and the cities of Sanibel, Fort Myers, and Cape Coral.
6
    One way tolling beginning in fiscal year 2008.




                                                                                                                172
                                                                     Lee County, Florida
                                                                       SCHEDULE 15
                                                           CAPITAL ASSET STATISTICS BY FUNCTION
                                                                    Last Eight Fiscal Years
                                                                           (in units)



                                          2002             2003              2004              2005             2006             2007            2008       2009
Governmental Activities
   General Government                      10,573            10,510             9,140           10,107           11,010          11,493           12,638    10,943
   Public Safety                            6,491             7,287             6,646            7,581            8,055           8,997            9,789    10,196
   Physical Environment                       440               463               401              447              433             505              521       528
   Transportation                           3,142             3,256             3,224            3,237            3,264           3,360            3,396     3,411
   Economic Environment                       152               165               134              147              202             214              206       224
   Human Services                             967               967               893              842              885             875              818       877
   Culture and Recreation                   3,884             4,030             3,668            4,022            4,085           4,340            4,182     4,396
                                           25,649            26,678            24,106           26,383           27,934          29,784           31,550    30,575

Business-type Activities
   Port Authority                           2,068              2,162            1,990            2,061            2,147           2,227            2,262     2,346
   Water and Wastewater                     4,421              5,240            6,429            7,814            9,033          10,800           12,776    13,806
   Transportation Facilities                  778                814              784              881              995           1,071              984       992
   Solid Waste                                313                372              354              407              441             459              482       487
   Transit                                    472                456              412              504              541             606              631       811
                                            8,052              9,044            9,969           11,667           13,157          15,163           17,135    18,442



 Note: Data is reported beginning in fiscal year 2002 since certain data was unavailable prior to the implementation of Governmental Accounting Standards
 Board Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysis-for State and Local Governments .


 Source: Lee County Clerk of Courts Finance and Records Department and the Lee County Sheriff's Office




                                                                                  173
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                  174
    Other
Supplemental
 Information




     175
     175
                                                  Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                            TOURIST DEVELOPMENT TAX REFUNDING REVENUE BONDS, SERIES 2004
                                                  September 30, 2009
                                                      (unaudited)
                                                 (dollars in thousands)

                                 Historical Tourist Development Tax Revenues and Gross Revenues and
                                                         Debt Service Coverage


Fiscal Year Ended September 30                                       2004          2005      2006      2007        2008        2009

Tourist Development Tax Revenues (debt portion)                      $12,318       $11,603   $13,279   $13,792     $14,267     $13,123

Stadium Rental Revenue (Gross Revenues)                                  300          300       300        300         300            300


Total Pledged Funds (1)(2)                                           $12,618       $11,903   $13,579   $14,092     $14,567     $13,423

Maximum Annual Debt Service
Payable from Pledged Funds                                               833          825       825        825         825            821

Debt Service Coverage(3)                                               15.1x         14.4x     16.5x     17.1x        17.7x      16.3x

(1)
      Investment earnings, if any, have not been included in these calculations.
(2)
      This figure includes only Tourist Development Tax revenues as defined in the Bond Resolution. Revenues from the 2% tax
      increase which went into effect in 2006 are not included.
(3)
      The Bond Resolution requires 1.75 times the Maximum Annual Debt Service for the issuance of Additional Bonds.


Source: Lee County Clerk of Courts Finance and Records Department




                                                                            176
                                                                                            Lee County, Florida
                                                                                   SUPPLEMENTAL SCHEDULES
                                                                                       CAPITAL REVENUE BONDS
                                                                                           September 30, 2009
                                                                                              (unaudited)


                                                                         Pledged Revenues and Debt Service Coverage

                                                                                                  Historical                                                         Projected
                                      (1)
                           Revenues                                   2006                2007                    2008              2009             2010              2011             2012

Ambulance Service Receipts                                           $15,428,511        $14,955,468              $16,944,873       $18,476,487      $17,200,500      $17,458,508       $17,720,385
Excess County Officer Fees                                            22,004,668         20,289,470               18,566,672        20,470,089       10,151,042       10,000,000        10,000,000
Race Track Funds                                                         223,250            223,250                  223,250           223,250          223,250          223,250           223,250
Communication Services Tax                                             2,600,000          2,600,000                2,600,000         2,600,000        2,600,000        2,600,000         2,600,000
First Guaranteed Entitlement                                             579,000            579,000                  579,000           579,000          579,000          579,000           579,000
License Fees (Mobile Home/Alcohol/Insurance)                             828,577            832,813                  820,958           816,146          797,290          809,249           821,388
Sales Tax                                                             45,312,441         42,195,424               36,506,532        32,128,795       27,733,795       28,000,000        28,000,000
Investment Earnings                                                    8,511,003         12,878,956               10,188,989         3,978,394       11,410,628       11,524,734        11,639,982
Data Processing Fees                                                   9,527,331         10,619,000               10,450,058        10,400,173       10,712,178       11,033,544        11,364,550

Sub-Total Pledged Revenues                                          $105,014,781        $105,173,381             $96,880,332       $89,672,334      $81,407,683       $82,228,285      $82,948,555

Maximum Annual Debt Service                                           21,776,744         21,776,744               21,776,744        21,776,744       21,776,744       21,776,744        21,776,744

Debt Service Coverage                                                        4.82 x              4.83 x                  4.45 x            4.12 x           3.74 x            3.78 x           3.81 x

                                                                                                    (2)
                                                               Plus Limited Availability Revenues

Building and Zoning Permits and Fees                                  21,457,252         14,622,510                8,205,593         7,930,260        7,181,536        7,253,351         7,325,885
Pledged Gas Taxes
   Constitutional Gas Tax                                              5,693,219           5,857,298               5,568,295         5,381,022        4,779,824        4,779,824         4,779,824
   County (7th cent) Gas Tax                                           2,535,530           2,551,614               2,426,138         2,331,100        2,115,729        2,115,729         2,115,729
   Ninth Cent (Voted ) Gas Tax (Net of Series '93 and '03              2,362,886           2,307,353               2,101,397         1,975,059        2,788,780        2,788,780         2,788,780
     Debt Service through 2009 when Issue Retired)
Total Pledged Revenues                                             $137,063,668        $130,512,156             $115,181,755      $107,289,775      $98,273,552      $99,165,969       $99,958,773

Maximum Annual Debt Service                                           21,776,744         21,776,744               21,776,744        21,776,744       21,776,744       21,776,744        21,776,744

Debt Service Coverage                                                        6.29 x              5.99 x                  5.29 x            4.93 x           4.51 x            4.55 x           4.59 x


(1)
      Not all sources of Pledged Revenues may be legally available to pay debt service on all series of Bonds.
(2)
      Availability to pay debt service may be limited.



SOURCE: Lee County Clerk of Courts Finance and Records Department for historical and projected figures; Division of Budget Services for projected figures




                                                                                                          177
                                                             Lee County, Florida
                                                        SUPPLEMENTAL SCHEDULES
                                                       LOCAL OPTION GAS TAX BONDS
                                                             September 30, 2009
                                                                 (unaudited)

                                       Local Option Gas Tax Refunding Revenue Bonds, Series 1997
          Actual Revenues and Coverage of Maximum Annual Debt Service Requirements and Number of Gallons
                                                                    (dollars in thousands)
                         Six Cent
       County         Local Option       Maximum        Debt Service            State                             Number of Gallons4
        Fiscal           Gas Tax        Annual Debt       Coverage              Fiscal            Motor                  Diesel           Total
        Year1           Revenues          Service           Ratio               Year2              Fuel                  Fuel3           Gallons
        2000             $7,588           $3,310             2.29               2000           221,552,425             29,792,591      251,345,016
        2001              7,383             3,306            2.23               2001           228,825,414             30,105,009      258,930,423
        2002              7,666             3,300            2.32               2002           237,330,501             31,254,455      268,584,956
        2003              7,919             3,298            2.40               2003           247,547,557             31,740,145      279,287,702
        2004              8,642             3,293            2.62               2004           264,515,852             34,435,223      298,951,075
        2005              9,287             3,289            2.82               2005           288,353,645             40,208,692      328,562,337
        2006              9,702             3,288            2.95               2006           299,544,192             46,160,096      345,704,288
        2007              9,276             3,285            2.82               2007           303,698,720             44,871,752      348,570,472
        2008              8,713             3,279            2.66               2008           283,149,975             42,495,823      325,645,798
        2009              8,420             3,276            2.57               2009           272,857,247             37,721,362      310,578,609

1
    County fiscal year ended September 30.
2
    State fiscal year ended June 30.
3
    Diesel fuel is defined to mean all petroleum distillates commonly known as diesel #2 or any other product blended with diesel or
    any product placed into the storage tank of a diesel - powered motor vehicle.
4
    Number of gallons sold in Lee County.



                                   Five Cent Local Option Gas Tax Refunding Revenue Bonds, Series 2004

                                          Gas Tax Revenues and Number of Taxable Gallons Sold
                                                                    (dollars in thousands)
                                         Five Cent
                         County         Local Option     Percentage             State           Gallons of             Percentage
                          Fiscal          Gas Tax         Increase              Fiscal            Motor                 Increase
                          Year1          Revenues        (Decrease)             Year2              Fuel3               (Decrease)
                          2000            $5,574            N/A                 2000           221,552,425               N/A
                          2001              5,450           -2.2%               2001           228,825,414                3.3%
                          2002              5,661           3.9%                2002           237,330,501                3.7%
                          2003              5,851           3.4%                2003           247,547,557                4.3%
                          2004              6,388           9.2%                2004           264,515,852                6.9%
                          2005              6,731           5.4%                2005           288,353,645                9.0%
                          2006              6,978           3.7%                2006           299,544,192                3.9%
                          2007              6,874           -1.5%               2007           303,698,720                1.4%
                          2008              6,364           -7.4%               2008           283,149,975               -6.8%
                          2009              6,299           -1.0%               2009           272,857,247               -3.6%


    Five Cent Local Option Gas Tax Debt Service Coverage                                               Allocation of Gas Tax Revenues

                        Five Cent
       County         Local Option       Maximum        Debt Service                         City of Cape Coral                          25.52%
        Fiscal           Gas Tax        Annual Debt       Coverage                           City of Fort Myers                          14.00%
        Year1           Revenues          Service           Ratio                            Sanibel                                      5.00%
        2004             $6,388           $2,539             2.52                            Town of Ft. Myers Beach                      1.02%
        2005              6,731             2,539            2.65                            City of Bonita Springs                       4.75%
        2006              6,978             2,539            2.75                            Lee County                                  49.71%
        2007              6,874             2,436            2.82
        2008              6,364             2,436            2.61                                                                       100.00%
        2009              6,299             2,433            2.59

1
    County fiscal year ended September 30.
2
    State fiscal year ended June 30.
3
    Number of gallons sold in Lee County.


    Source: Lee County Clerk of Counrts Finance and Records Department and Lee County Budget Services




                                                                                  178
                                                Lee County, Florida
                                      SUPPLEMENTAL SCHEDULES
                            LEE COUNTY WATER AND WASTEWATER SYSTEMS
                                                   September 30, 2009
                                                      (Unaudited)


Monthly Water Rates
Customer Classification
                                                                                                  User
                                                                                                Charge
                                      Monthly                                              Per 1,000 Gallons
Residential Service                Service Charge                                           For Each ERU

Single – family                   $7.78 per unit                                                1 - 6,000       $2.84
                                                                                           6,001 - 12,000        3.49
                                                                                          12,001 - 18,000        4.14
                                                                                       18,001 and above          5.43

Multi – family                    $6.21 per unit/lot                                            1 - 6,000        2.84
                                                                                           6,001 - 12,000        3.49
                                                                                          12,001 - 18,000        4.14
                                                                                       18,001 and above          5.43

Recreational vehicle              $3.14 per unit/lot                                            1 - 6,000        2.84
                                                                                           6,001 - 12,000        3.49
                                                                                          12,001 - 18,000        4.14
                                                                                       18,001 and above          5.43

Mobile Home                       $6.21 per unit/lot                                            1 - 6,000        2.84
                                                                                           6,001 - 12,000        3.49
                                                                                          12,001 - 18,000        4.14
                                                                                       18,001 and above          5.43

Each residential service account will be charged a monthly administrative fee of $2.82.

An additional well field development surcharge of $0.50 per ERU will be assessed to those residential customers
whose monthly water consumption exceeds their initial water conservation block during the monthly billing
period (6,000 gallons per ERU).

The total monthly rate for residential service is the sum of the: a) service charge; b) administrative fee; c) well field
development surcharge (if applicable); and d) user charges in accordance with this schedule.

Commercial and All Non-Residential
                                                                                                  User
                                                                                                Charge
                                      Monthly                    ERU                       Per 1,000 Gallons
       Meter Size                  Service Charge                Ratio                      For Each ERU

          5/8"                              $10.60                  1.0                         1 - 6,000       $2.84
          3/4"                               14.50                  1.5                    6,001 - 12,000        3.49
            1"                               22.28                  2.5                   12,001 - 18,000        4.14
          1½"                                41.73                  5.0                18,001 and above          5.43
            2"                               65.07                  8.0
            3"                              127.32                 16.0             Non-irrigation class
            4"                              197.35                 25.0                       Per 1,000          2.84
            6"                              391.87                 50.0
            8"                              625.30                 80.0                   Irrigation class
           10"                            1,131.07                145.0                          1 - 6,000       3.49
                                                                                            6,001 - 12,000       4.14
                                                                                         12,001 and over         5.43

An additional well field development surcharge of $0.50 per ERU will be assessed to those commercial and
non-residential customers whose monthly water consumption exceeds their initial water conservation block
during the monthly billing period (6,000 gallons per ERU).

The total monthly rate is the sum of the service and the user charges.


Water Restriction Surcharge Adjustment
In the event that the South Florida Water Management District or other authority having appropriate jurisdiction
declares a water shortage requiring a mandatory water usage reduction in the amount of 15%, the water user
charges listed above will be increased by 18%.

In the event that a reduction of water use greater than 15% is required, the County Commission may establish by
resolution, a surcharge based upon the recommendation of the Public Works Director in order to meet revenues
required to comply with existing bond debt service covenants, or to meet other requirements of the water system.



Source: Lee County Utilities Division




                                                          179
                                                    Lee County, Florida
                                          SUPPLEMENTAL SCHEDULES
                                LEE COUNTY WATER AND WASTEWATER SYSTEMS
                                             September 30, 2009
                                                (Unaudited)


Monthly Wastewater Rates
Customer Classification
                                                                          User
                                            Monthly                     Charge                      Unmetered
Residential Service                      Service Charge            Per 1,000 Gallons                User Charge

Single – family                         $12.57 per unit                   $4.59                      $20.68 per unit
Multi – family                           10.08 per unit/lot                4.59                       16.55 per unit/lot
Recreational vehicle                      5.10 per unit/lot                4.59                        8.28 per unit/lot
Mobile Home                              10.08 per unit/lot                4.59                       16.55 per unit/lot

Each residential service account shall be charged a monthly administrative fee of $4.05.

No wastewater user charge shall be imposed on metered water usage above nine thousand (9,000) gallons per
month, per residential service dwelling unit.

The total monthly rate for residential service is the sum of the: a) service charge; b) administrative fee; and c) user
charges, in accordance with the schedule.

Commercial and All Non-Residential
                                                                          User
                                            Monthly                     Charge
       Meter Size                        Service Charge            Per 1,000 Gallons

          5/8"                                     $16.62                 $4.59
          3/4"                                      22.97                  4.59
           1"                                       35.54                  4.59
          1½"                                       67.54                  4.59
           2"                                      104.89                  4.59
           3"                                      205.43                  4.59
           4"                                      318.10                  4.59
           6"                                      634.64                  4.59
           8"                                    1,012.81                  4.59
           10"                                   1,830.52                  4.59

Unmetered commercial and non-residential charges will be calculated individually based on estimates of
wastewater discharges and the above schedule of rates.

The total monthly rate for residential service is the sum of the service and the user charges.


Connection Fees
                                                              Number                     Water                    Wastewater
Customer Classification                                       ERU's                      Charge                     Charge

Residential Service
Single – family                                                  1.00                   $2,440.00                   $2,660.00
Multi – family (per Dwelling Unit)                               0.80                    1,952.00                    2,128.00
Recreational vehicle (per Dwelling Unit/Lot)                     0.40                      976.00                    1,064.00

Commercial and All Non-Residential
Charge Per Gallon                                                                           $9.76                      $10.64


Water Meter Installation and Service Connection Fees

                                           Installation                                  Tap-In
       Meter Size                            Charge                                      Charge

         5/8"                                    $250.00                                  $660.00
         3/4"                                     275.00                                   690.00
           1"                                     330.00                                   745.00
          1½"                                     540.00                                   920.00
           2"                                     625.00                                 1,005.00
     3" and above                            Actual Cost                               Actual Cost
Wastewater Main Tap Charge                                                             Actual Cost

In addition to new installations, these rates may also apply to water and sewer service upgrades or facility locations.

Charges for larger meter and wastewater main taps will be based on estimates of actual time and expense. Amounts
collected by the County in excess of actual costs will be credited to the customer's account or be refunded, as may be
applicable. Amounts due, caused by underestimation, will be billed and payable to Lee County Utilities.



Source: Lee County Utilities Division




                                                                   180
                                                        Lee County, Florida
                                            SUPPLEMENTAL SCHEDULES
                                 LEE COUNTY WATER AND WASTEWATER SYSTEM
                                             September 30, 2009
                                                (Unaudited)

                         Historical Revenues, Expenses, and Debt Service Coverage
                                                       (dollars in thousands)

                                                              2006                  2007                 2008               2009

Water and wastewater sales revenues                           $69,439               $71,306              $87,553            $83,809
Other operating revenue(1)                                       1,215                1,375                1,942              1,897
Total operating revenues                                        70,654               72,681               89,495             85,706

Operating expenses(2)                                           50,699               55,143               56,882             57,085
Net operating revenue                                           19,955               17,538               32,613             28,621

Interest income(3)                                               4,145                 4,584                2,467              1,219
Special assessments(4)                                             776
Net available revenues                                          24,876               22,122               35,080             29,840

Net available revenues after other transfers                    24,876               22,122               35,080             29,840

Connection fee revenues(5)                                      22,519               15,859                 6,784              2,486

Net revenues and connection fees                                47,395               37,981               41,864             32,326

Senior lien debt service                                        14,148               14,135               13,254             13,249

Senior lien debt service coverage:
 Without pledged connection fees                                   1.76                 1.57                 2.65                2.25
 With pledged connection fees                                      3.35                 2.69                 3.16                2.44

Other debt service requirements(6)                                 721                   947                1,864              2,556

Net available revenues and other
 funds received for capital
 improvements and other purposes(7)                           $10,007                $7,040              $19,962            $14,035
_____________________
(1) Amount shown includes miscellaneous operating revenues including bulk water sales, meter installation charges, turn-on and
   turn-off fees, etc.
(2) Amount shown does not include depreciation or amortization expenses which are not considered an operating expense pursuant to
   the County's Bond Resolution.
(3) Amount shown includes interest earnings on unrestricted fund balances as defined in the Bond Resolution.
(4) The proceeds of certain special assessments are pledged to the Series 1993 Bondholders only and are not a pledged revenue for the
   County's other Water and Sewer Revenue Bonds. The Series 1993 bonds were retired on 10/1/06.
(5) Includes all Connection Fees, only a portion of which may be legally available to pay debt service under Florida law.
(6) Includes State Revolving Fund (SRF) indebtedness.
(7) Amount shown does not include Connection Fees and associated interest earnings.


Source: Lee County Clerk of Courts Finance and Records Department




                                                                  181
                                                     Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                                   LEE COUNTY WATER AND WASTEWATER SYSTEM
                                               September 30, 2009
                                                  (Unaudited)


Customer Statistics:
Historical customer statistics with respect to the Lee County Water System are set forth below:

                          County Water System Customer Accounts and Sales Statistics

       Fiscal Year                                                                                             Average
         Ended             Average Annual                                                                    Monthly Use
      September 30          No. of Retail           Amount             Daily Flow          Retail Sales      Per Customer
       (Historical)          Customers          (000s of gallons)       (MGD)            (000s of gallons)     (gallons)
          2000                 49,262              6,680,207             18.25              5,222,801            8,835
          2001                 50,112              6,686,475             18.32              5,478,555            9,111
          2002                 50,929              6,901,403             18.91              5,546,934            9,076
          2003                 59,381              7,872,668             21.57              6,233,513            8,748
          2004                 65,806              8,775,003             23.98              7,087,734            8,976
          2005                 69,373              8,708,193             23.86              8,379,038            10,065
          2006                 73,492              9,603,709             26.31              7,975,812            9,044
          2007                 75,164              8,715,271             23.88              8,699,462            9,645
          2008                 74,688              8,832,235             24.20              7,503,846            8,372
          2009                 73,815              8,194,939             22.45              7,415,557            8,371
     Average Annual
        Historical              9.33%                9.96%                                   10.52%
      Growth Rate

* Amounts shown do not include wholesale water customers and associated water sales of the County.


Historical customer statistics with respect to the Lee County Wastewater System are set forth below:


                      County Wastewater System Customer Accounts and Sales Statistics 1

        Fiscal Year
          Ended            Average Annual
       September 30          No. of Retail       Billed Flow1,2       Total Treated        Daily Flow
       (Historical)           Customers         (000s of gallons)   (000s of gallons)3       (MGD)
          2000                  31,731             2,321,193            4,162,428             11.37
          2001                  32,895             3,365,843            4,298,095             11.78
          2002                  34,474             3,278,316            4,307,770             11.80
          2003                  41,861             3,993,214            4,791,857             13.13
          2004                  45,960             5,332,320            5,709,457             15.60
          2005                  45,685             5,305,122            5,523,955             15.13
          2006                  49,329             5,517,229            6,235,968             17.08
          2007                  54,415             5,747,455            5,906,267             16.18
          2008                  54,403             5,824,545            6,086,665             16.63
          2009                  53,873             5,806,963            6,051,982             16.58
     Average Annual
        Historical              7.66%                8.56%
      Growth Rate

1
    Amounts shown do not include wholesale treatment services (sales) by the County
2
    Amounts shown represent metered water use that is billed the wastewater flow charge for rate
    application purposes
3
    Amount shown includes flows treated by the City of Fort Myers based on an agreement entered into
    between the City of Fort Myers and the County that currently allocates 50.0% of total City treatment
    capacity to the County (approximately 11.50 MGD).


Source: Lee County Utilities Division


                                                                     182
                                                    Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                                        LEE COUNTY WATER AND WASTEWATER SYSTEM
                                                    September 30, 2009
                                                       (Unaudited)


County System Top Ten Retail Utility Customers (Based on Sales Revenue)

                                                                                                        % of Total
                                                                    Meter     Type of     System       County Sales
                     Customer                           Class       Size      Service     Revenue       Revenue

Landings Env. Wrm. Assoc. Inc.                      Multifamily        6"   Water/Sewer    $607,844      0.754%
Gulf Coast Town Center                              Commercial        10"   Water/Sewer     398,517      0.494%
Shell Point Village                                 Commercial         8"   Water/Sewer     380,868      0.472%
Lee Memorial Health System - Gulf Coast Hospital    Commercial        10"   Water/Sewer     325,188      0.403%
Jamaica Bay Assoc. LDT                              Multifamily        8"     Water         303,780      0.377%
Lee Memorial Health System - Health Park            Commercial         2"   Water/Sewer     265,232      0.329%
Indian Creek Park                                   Multifamily        6"   Water/Sewer     283,105      0.351%
Lee County Port Authority - International Airport   Commercial         6"   Water/Sewer     255,546      0.317%
Corkscrew Woodlands Assoc., Inc.                    Multifamily        6"   Water/Sewer     254,857      0.316%
Sanibel Harbour Resort                              Commercial         6"   Water/Sewer     226,310      0.281%


                                                                                          $3,301,247     4.093%


Source: Lee County Utilities Division




                                                            183
                                               Lee County, Florida
                                    SUPPLEMENTAL SCHEDULES
                                   LEE COUNTY SOLID WASTE SYSTEM
                                              September 30, 2009
                                                    (unaudited)

                                Historic Tipping Fees for Solid Waste System

              Fiscal Year                  Unincorporated Area (1)                   Incorporated Area
                 2000                             $63.31                                  $50.00
                 2001                              59.65                                   50.00
                 2002                              56.15                                   47.00
                 2003                              54.94                                   48.15
                 2004                              54.16                                   48.15
                 2005                              54.82                                   48.15
                 2006                              57.51                                   49.59
                 2007                              58.40                                   51.20
                 2008                              59.77                                   53.25
                 2009                              59.93                                   54.00

  (1)   Includes Surcharges

   Source: Lee County Solid Waste Division


                         Historic Revenue and Operating Expenses of Lee County
                                       Solid Waste Enterprise Fund
                                            September 30, 2009
                                               (unaudited)
                                         (amounts in thousands)

                                                                         Annual
                                    Operating            Net              Debt                                Net
Fiscal Year       Revenues          Expenses          Revenues           Service         Coverage            Assets
   2000            $56,667           $27,101           $29,566           $18,508           1.60              $91,409
   2001             60,204            29,335            30,869            18,904           1.63              106,153
   2002             58,264            30,275            27,989            17,577           1.59              118,836
   2003             60,168            30,394            29,774            17,688           1.68              131,392
   2004             64,690            32,805*           31,885            18,797           1.70              147,051
   2005             67,356            35,659*           31,697            18,759           1.69              163,798
   2006             82,865            44,399            38,466            18,858           2.04              187,842
   2007             88,584            48,793            39,791            21,513           1.85              215,911
   2008             89,490            54,022            35,468            22,141           1.60              232,626
   2009             87,919            56,530            31,389            22,436           1.40              243,246


*Excludes expense related to hurricane damage which is treated in the financial statements as non-operating expense.

 Source: Lee County Clerk of Courts Finance and Records Department




                                                              184
                                                 Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                                          LEE COUNTY SOLID WASTE SYSTEM
                                                 September 30, 2009
                                                     (unaudited)
                                              Historic Solid Waste Tonnage

                The following table provides the historic tons of solid waste delivered to the System
                                               for FY 2000 through FY 2009.

                                         Lee County Historic Solid Waste
                                             Delivered to the System
                      Unincorporated Area           Incorporated Area           Hendry County (1)                      Total
                                      Non-                                                    Non-
                   Processible     Processible                             Processible     Processible                         Non-
                      Solid           Solid           Processible             Solid           Solid        Processible      Processible
  Fiscal Year       Waste (2)       Waste (3)        Solid Waste (2)         Waste          Waste (3)          (2)              (3)
 2000 (4)             248,800           50,100               145,000           32,800           7,300         426,600           57,400
 2001 (5)             230,300           44,600               179,500           33,400           8,200         443,200           52,800
 2002 (5)             250,100           19,800               178,000           34,100           7,500         462,200           27,300
2003 (4) (5)          282,786            4,135               204,776           32,949           9,292         520,511           13,427
2004 (4) (5)          315,276            8,805               228,303           34,227           8,127         577,806           16,932
2005 (4) (5)          294,152            9,081               232,140           40,706           9,404         566,998           18,485
2006 (4) (5)          302,615           14,284               252,006           46,942          16,551         601,563           30,835
2007 (4) (5)          290,989           24,640               228,642           46,342           5,780         565,973           30,420
2008 (4) (5)          317,429           15,939               235,969           45,353             783         598,751           16,722
2009 (4) (5)          334,627           37,804               236,076           36,370             112         607,073           37,916

(1) Hendry County began delivering solid waste to the system in December 1992.


(2) Processible Waste - Waste quantities generated by Lee County which are anticipated to be processed at the County's Waste-to
   Energy Facility. This does not include processible waste that is recovered/recycled.


(3) Non-processible Waste - Waste generated by Lee County and Hendry County which is landfilled, primarily consisting of construction
   and demolition debris, XL tires, sludge, etc. It does not include non-processibles that are recycled, horticultural waste, and
   ash residue.


(4) Based on actual solid waste tonnage records, and reflects the incorporation of the Town of Fort Myers Beach.


(5) Reflects incorporation of the Town of Fort Myers Beach and Bonita Springs.




                                                                185
                                                           Lee County, Florida
                                           SUPPLEMENTAL SCHEDULES
                                          LEE COUNTY SOLID WASTE SYSTEM
                                                          September 30, 2009
                            HISTORICAL REVENUES AND EXPENSES
                                     Lee County, Florida
                                     Solid Waste System
System Income ($)                                                                               Fiscal Year 2008    Fiscal Year 2009
1. WTE Facility Energy Revenues.................................................              14,146,165                   16,464,164
2. Hendry County Disposal Revenues........................................                     1,188,552                      940,396
3. Disposal Facility Assessment ..................................................             9,016,061                    9,150,334
4. Interest Income...........................................................................  2,768,661                      306,663
5. Reserve Fund Earnings.............................................................            503,840                      154,853
6. Franchise Fees............................................................................  2,220,404                    1,585,722
7. Solid Waste Program Revenues...............................................                56,276,281                   56,239,444
8. Rate Stabilization Reserve Fund..............................................                       0                             0
9. Resource Recovery Tip Fees Revenues................................... included in line 7                        included in line 7
10. Landfill Tip Fee Revenues...................................................... included in line 7              included in line 7
11. MSTU Tax Fund.......................................................................       2,035,859                    1,524,258
12. Other Revenue..........................................................................    4,714,324                    3,552,647
13. TOTAL SYSTEM INCOME......................................................                 92,870,147                   89,918,481
14. Non-applied Income................................................................         3,379,715                    1,999,731
15. NET SYSTEM INCOME...........................................................              89,490,432                   87,918,750

System Expenses ($)
Landfill Operation Costs
16. Landfill Operating Costs.......................................………….                                3,531,098           3,946,537
17. Landfill Closure Operating Costs………………………….                                                           813,622           1,610,822
WTE Facility Operation Costs
18.    Operation and Maintenance Charge...................................                             13,833,037          16,410,569
19.    Energy Credit.........................................................................           1,401,126           1,557,132
20.    Pass Through Costs...............................................................                3,542,267           3,332,983
21.    County Operations ...............................................................                6,349,883           4,900,489
22.    Regulation Service Charge....................................................                      108,124             109,368
Solid Waste Program Costs
23. Solid Waste Program Costs...................................................                       36,854,995          38,893,002
24. TOTAL SYSTEM EXPENSES...................................................                           66,434,152          70,760,902
25. Non-applied Expenses...........................................................                    12,411,671          14,230,984
26. NET SYSTEM EXPENSES........................................................                        54,022,481          56,529,918

System Annual Debt Service ($)
27. Series 2001 Refunded 1991 Bonds ......................................                             16,937,543          16,924,496
28. Series 2006A Bonds................................................................…                 4,138,969           4,138,969
29. Series 2006B Bonds……………………………………………                                                                 1,064,645           1,372,951
30. TOTAL ANNUAL DEBT SERVICE........................................                                  22,141,157          22,436,416

31. NET REVENUES APPLIED TO D.S. .....................................                                 35,467,951          31,388,832

32. DEBT SERVICE COVERAGE..................................................                                 160%                140%




                                                                           186
                                Lee County, Florida
                       SUPPLEMENTAL SCHEDULES
                       LEE COUNTY SOLID WASTE SYSTEM
                              September 30, 2009
                                  (unaudited)



                            NOTES TO HISTORICAL
                         REVENUES AND EXPENSES FOR
                             FISCAL YEAR 2009

1.   Electrical revenues from the Seminole Electric Cooperative Power
     Purchase Agreement.

2.   The Hendry County Disposal Revenues in accordance with the terms and
     conditions stipulated in the Hendry County Disposal Agreement.

3.   The Disposal Facilities Assessment based on the FY09 assessment fee of $18.00
     per ton.


4.   Interest Income is equal to the sum of the annual interest earnings on the
     various Solid Waste Program balances (including Solid Waste Operations,
     Solid Waste Administration, Right-of-Way Cleanup, Hazardous Waste,
     Rate Stabilization and Recycling) for FY09.

5.   Reserve Fund Earnings are equal to the sum of the interest earnings on the
     debt service reserve funds of the Series 2001 Bonds for FY09.

6.   Franchise Fees calculated at 5.5 percent as per Collection Hauler collection
     agreements.

7.   The Solid Waste Program Revenues are equal to the sum of the Solid
     Waste Operations, Solid Waste Management and Right-of-Way Cleanup
     surcharges. Plus the Solid Waste Collection and Billing revenues and
     Horticulture Waste Tip Fee revenues.


8.   The Rate Stabilization Reserve Fund is used to minimize annual
     fluctuations in the disposal rates. The total dollars in the Rate Stabilization
     Fund ending in FY 2009 were $15.7 million as provided by the Lee County
     Clerk of Courts Finance Department. Currently Rate Stabilization is held
     in reserve and not applied to revenues.




                                          187
                                Lee County, Florida
                        SUPPLEMENTAL SCHEDULES
                       LEE COUNTY SOLID WASTE SYSTEM
                                September 30, 2009
                                   (Unaudited)

Notes to Historical Revenues and Expenses (continued):

9.    The Resource Recovery Tip Fees for FY09 are based on the following per
      ton fees:
      MSW - $54.00, Commercial Horticulture- $29.00, Cities Residential
      Horticulture - $17.60, Tires - $120.00, Extra Large Tires - $158.00.

10.   Landfill Tips Fees based on a $54.00 per ton tip fee.

11.   The MSTU Tax Fund Revenue from the City of Cape Coral.

12.   Other Revenue is the sum of Grant Awards, Material Recovery Facility
      Revenues,    Hendry      County    Loan     Repayments,  Contractual
      Reimbursements, New Construction Assessments, Upper Captiva
      Hurricane-related Revenues and Other Miscellaneous Revenue including
      advanced disposal fees and delinquent accounts.

13.   The Total System Income is the sum of Lines 1 through 12.

14.   Non-applied Income consists of income that the County derives from
      certain sources, which is not within the definition of Revenues and Net
      Revenues and, therefore, is not applied toward debt service coverage.
      Non-applied Income is equal to the sum of the Material Recovery Facility
      Revenues ($1,256,571) and Hurricane Charley FEMA reimbursement
      ($743,160).

15.   Net System Income is equal to the Total System Income (Line 13) less the
      Non-applied Income (Line 14).

16.   Landfill Operating Costs are equal to the total landfill operating costs
      including the agreement for operation of the landfill with Waste
      Management, Inc.

17.   Lee County Solid Waste previously maintained an escrow account to
      demonstrate financial assurance and changed to using the Financial Test
      in FY 2003. Operating costs associated with closure are $22,455 for FY
      2009.




                                              188
                               Lee County, Florida
                       SUPPLEMENTAL SCHEDULES
                       LEE COUNTY SOLID WASTE SYSTEM
                               September 30, 2009
                                  (Unaudited)

Notes to Historical Revenues and Expenses (continued):


18.   The Operation and Maintenance Charge (O & M) is based on the Initial
      Operation and Maintenance Charge of $12,454,411 for 427,216 tons
      processed in a billing year plus $13.2904 per ton up to 569,619 tons or
      tonnage declared by Lee County for a total of $14,347,000. The Initial O &
      M charge was established for January 2005 and is adjusted annually based
      on published indices. If the operator achieves above 90% throughput the
      contract allows for an additional per ton fee.

19.   Energy Credit is based on 10 percent of the Net Energy Revenues. Net
      Energy Revenue is equal to the Facility Energy Revenues (Line 1) minus
      the Renewable Energy Credits ($875,163) minus the FPL stand-by and
      electricity consumption ($89,332) plus electrical costs for the Material
      Recycling Facility usage ($71,652).

20.   Pass through Costs include FPL stand-by plus electricity consumption,
      Lime, Sewer, Propane, Water, Reuse Water, Ammonia, Insurance,
      Mercury Reduction Reagent, ash testing, emissions testing and
      miscellaneous sales tax.

21.   County Operations include expenses related to disposal administration
      costs, horticultural processing, Waste-to-energy transfer station, ash
      hauling.

22.   The Regulation Service Charge for FY09 is $109,368 based on the Seminole
      Electric Cooperative Power Purchase Agreement.


23.   The Solid Waste Program Costs are equal to the sum of the Solid Waste
      Operations, Solid Waste Management, Right-of-Way Clean-up,
      Hazardous Waste, and Recycling Program Costs; plus Hendry County
      Transfer Station O&M, Solid Waste Residential Collection, Depreciation
      and Billing.




                                          189
                                           Lee County, Florida

                                     SUPPLEMENTAL SCHEDULES
                                    LEE COUNTY SOLID WASTE SYSTEM
                                          September 30, 2009
                                              (Unaudited)

Notes to Historical Revenues and Expenses (continued):

24.       The Total System Expenses equal the sum of Lines 16 through 23.

25.       Non-applied Expenses are equal to the sum of the Landfill Closure
          Operating Costs (Line 17) and Depreciation ($12,620,162). These expenses
          are not Operating Expenses as defined in the Indenture and are, therefore,
          not applied in determining debt service coverage.

26.       Net System Expenses are equal to the Total System Expenses (Line 24) less
          the Non-applied Expenses (Line 25).

27.       The Series 2001 Refunded Revenue Bonds are the annual debt service
          payments for the refunding of the Series 1991 Revenue Bonds as provided
          by the Lee County Clerk of Courts Finance Department.

28.       The Series 2006A Bonds are the annual debt service payments for the
          Series 2006A Revenue Bonds as provided by the Lee County Clerk of
          Courts Finance Department.

29.       The Series 2006B Refunding Revenue Bonds are the annual debt service
          payments for the refunding of the Series 1995 Revenue Bonds as provided
          by the Lee County Clerk of Courts Finance Department.


30.       Total Annual Debt Service equals the sum of the Series 2001 Bonds (Line
          27), the Series 2006A Bonds (Line 28) and the Series 2006B Bonds (Line 29).


31.       Net Revenues Applied to D.S. (Debt Service) is equal to the Net System
          Income (Line 15) less the Net System Expenses (Line 26).


32.       The Debt Service Coverage is equal to the Net System Revenues Applied
          to D.S. (Line 31), divided by the Total Annual Debt Service (Line 30).
Source: Lee County Solid Waste Division




                                                        190
                                      Lee County, Florida
                                  SUPPLEMENTAL SCHEDULES
                            LEE COUNTY TRANSPORTATION FACILITIES
                                       September 30, 2009
                                          (Unaudited)

Toll Revenue - Sanibel Bridge
The schedule below reflects the toll structure:

 Vehicle Class                                                                  September 30, 2009

      Motorcycles                                                                                $ 2.00
      2 axles                                                                                      6.00
      3 axles                                                                                      9.00
      4 axles                                                                                     12.00
      5 axles                                                                                    15.00
      6 or more axles, per axle                                                                    3.00

Commuters can choose between annual or semi - annual ETC discount programs that, depending
on the cost of the program, require no additional toll (“Unlimited ETC”) or a $2.00 toll for each
westbound crossing. Purchasers of Sanibel Causeway Unlimited ETC’s at least one month after
the beginning of the validity period (May 1 or November 1) are entitled to a prorated discount on
the purchase price. In addition, further discounts on the cost of the ETC are offered for non-
commercial vehicles registered or leased to the same natural person (the “Second Vehicle”) who
has purchased a discount program for a first vehicle (the “Initial Vehicle”).

The following table sets forth the toll rates for two axle vehicles that carry an ETC transponder:

         Type of                                                 Cost of
         Discount                                               Discount              Additional
         Program                           Vehicle              Program                 Toll

Annual(1)                         Initial Vehicle               $ 67.00                  $ 2.00
                                  Second Vehicle                  33.50                    2.00

                                  Initial Vehicle                400.00                    -0-
                                  Second Vehicle                 200.00                    -0-

Semiannual(2)                     Initial Vehicle                 50.00                   2.00
                                  Second Vehicle                  25.00                   2.00

                                  Initial Vehicle                300.00                    -0-
                                  Second Vehicle                 150.00                    -0-

Source: June 2007 Toll Resolution


(1)
      Valid for 12 months commencing November 1 of each year.
(2)
      Valid for 6 months commencing on November 1 or May 1 of each year.




                                                     191
                                      Lee County, Florida
                                  SUPPLEMENTAL SCHEDULES
                            LEE COUNTY TRANSPORTATION FACILITIES
                                       September 30, 2009
                                          (Unaudited)

The County has offered, in addition to ETC’s valid only on the Cape Coral Bridge, a combination
transponder, which is valid on all three facilities. Commuters can also choose to purchase
unlimited discount programs that are valid on all three facilities. The costs of combination
unlimited discount programs are also subject to proration as described above in the case of ETC’s
for the Sanibel Causeway. The costs are as follows:

                                      COMBINATION TOLLS
                 (Sanibel Causeway, Cape Coral Bridge and Midpoint Memorial Bridge)
      Type of                                      Cost of
      Discount                                    Discount                  Additional
      Program                     Vehicle         Program                     Toll

Annual(1)                Initial Vehicle          $ 107.00         $ 1.00 for Cape Coral or
                                                                   Midpoint; $ 2.00 for Sanibel
                         Second Vehicle              53.50         $ 1.00 for Cape Coral or
                                                                   Midpoint; $2 .00 for Sanibel

                         Initial Vehicle            730.00                      -0-
                         Second Vehicle             365.00                      -0-

Semiannual(2)            Initial Vehicle             74.00         $ 1.00 for Cape Coral or
                                                                  Midpoint; $ 2.00 for Sanibel
                         Second Vehicle              37.00        $ 1.00 for Cape Coral or
                                                                  Midpoint; $ 2.00 for Sanibel

                         Initial Vehicle            500.00                      -0-
                         Second Vehicle             250.00                      -0-

Source: June 2007 Toll Resolution

(1)
      Valid for 12 months commencing November 1 of each year.
(2)
      Valid for 6 months commencing on November 1 or May 1 of each year.



Toll Revenue - Cape Coral Bridge and Midpoint Memorial Bridge
The schedule below reflects the toll structure:

Vehicle Class                                                                         September 30, 2009

      Motorcycles                                                                            $ 1.00
      2 axles                                                                                  2.00
      3 axles                                                                                  4.00
      4 axles                                                                                  6.00
      5 axles                                                                                  8.00
      6 or more axles, per axle                                                                2.00
      Commuter Discounts                                                                   (See below)




                                                       192
                                    Lee County, Florida
                                SUPPLEMENTAL SCHEDULES
                          LEE COUNTY TRANSPORTATION FACILITIES
                                     September 30, 2009
                                        (Unaudited)

The Cape Coral Bridge and Midpoint Memorial Bridge toll structure also offers commuter toll
discounts similar to those offered on the Sanibel Causeway. The annual or semi-annual ETC,
depending on its cost, requires either (i) no additional toll or (ii) one dollar ($1.00) toll for each
westbound crossing. Second Vehicle discounts are available. Combination ETC’s which are
valid on both the Sanibel Causeway and the Cape Coral Bridge are also available. See the above
Combination Tolls table for a list of toll rates for combination ETC’s.

The following table sets forth the toll rates for two axle vehicles that carry an ETC transponder:

       Type of                                               Cost of
       Discount                                             Discount                   Additional
       Program                   Vehicle                    Program                      Toll

Annual(1)                Initial Vehicle                   $ 40.00                       $ 1.00
                         Second Vehicle                      20.00                         1.00

                         Initial Vehicle                    330.00                            -0-
                         Second Vehicle                     165.00                            -0-

Semiannual(2)            Initial Vehicle                     24.00                        1.00
                         Second Vehicle                      12.00                        1.00

                         Initial Vehicle                    200.00                            -0-
                         Second Vehicle                     100.00                            -0-

Source: June 2007 Toll Resolution

(1)
      Valid for 12 months commencing November 1 of each year.
(2)
      Valid for 6 months commencing on November 1 or May 1 of each year.

Variable Pricing Program
During the term of the variable pricing program, a toll for each westbound trip on the Cape Coral
and Midpoint Memorial Bridges the toll rates for off-peak usage with and without an ETC
transponder are set forth in the table below:

                               Specified Off-Peak Hour                  Specified Off-Peak Hour
Vehicle Class                     Toll Without ETC                           Toll With ETC

Motorcycles                               $1.00                                    n/a
2 axles                                    2.00                                $ 1.50/0.75
3 axles                                   4.00                                     3.00
4 axles                                    6.00                                    4.50
5 axles                                    8.00                                    6.00
6 or more axles                       2.00 per axle                           1.50 per axle


Source: Lee County Department of Transportation




                                                  193
                                                                Lee County, Florida
                                                            SUPPLEMENTAL SCHEDULES
                                                    LEE COUNTY TRANSPORTATION FACILITIES
                                                                     September 30, 2009
                                                                        (unaudited)

                                   TRANSPORTATION FACILITIES TRAFFIC, REVENUES AND EXPENSES BY BRIDGE
                                            MIDPOINT MEMORIAL BRIDGE TRAFFIC, REVENUE AND EXPENSES
                                                                                                               Operating
                             TOLL PAYING TRAFFIC                                                                  and
                                       Other                            Percentage        Gross Toll          Maintenance
Year         Passenger Cars           Traffic(1)           Total         Change           Revenues            Expenses(2)                  Net Revenues
                                                                                        (000's omitted)      (000's omitted)              (000's omitted)
1999           11,468,036             96,573            11,564,609                         $9,823                $1,528                      $8,295
2000           12,772,984             117,570           12,890,554        11.47%           10,608                 1,780                       8,828
2001           13,572,885             127,448           13,700,333        6.28%            11,846                 2,605                       9,241
2002           14,733,131             146,919           14,880,050        8.61%            12,099                 2,183                       9,916
2003           15,626,841             168,237           15,795,078        6.15%            13,115                 2,668                      10,447
2004           16,264,245             313,900           16,578,145        4.96%            14,072                 2,878                      11,194
2005           17,547,324             410,963           17,958,287        8.33%            15,520                 3,439                      12,081
2006           17,528,811             452,878           17,981,689        0.13%            15,571                 4,305                      11,266
2007           17,181,104             390,500           17,571,604        -2.28%           15,144                 4,772                      10,372
2008 (3)        8,165,132             182,356            8,347,488       -52.49%            12,956                3,285                       9,671
2009            6,944,989             151,143            7,096,132       -14.99%            12,515                3,816                       8,699


Source: Lee County Department of Transportation


       (1) Includes motorcycles and 3+ axle vehicles.
       (2) Does not include depreciation.
       (3) One-way tolling was implemented; tolls are only collected in the westbound direction and traffic figures include only one-way traffic.


                                                   CAPE CORAL BRIDGE TRAFFIC, REVENUE AND EXPENSES
                                                                                                               Operating
                             TOLL PAYING TRAFFIC                                                                  and
                                       Other                            Percentage        Gross Toll          Maintenance
Year         Passenger Cars           Traffic(1)           Total         Change           Revenues            Expenses(2)                  Net Revenues
                                                                                        (000's omitted)      (000's omitted)              (000's omitted)
1999            12,977,169             96,925           13,074,094                         $10,730              $1,767 (3)                   $8,963
2000            13,440,431             95,631           13,536,062        3.53%             10,934                1,922                       9,012
2001            14,250,084            109,112           14,359,196        6.08%             11,775                2,585                       9,190
2002            14,630,067            117,527           14,747,594        2.70%             11,491                2,163                       9,328
2003            15,286,228            137,714           15,423,942        4.59%             12,395                2,840                       9,555
2004            16,040,912            262,353           16,303,265        5.70%             13,148                3,142                      10,006
2005            17,041,302            314,351           17,355,653        6.46%             14,404                3,821                      10,583
2006            17,117,630            332,643           17,450,273        0.55%             14,269                4,312                       9,957
2007            16,956,173            306,875           17,263,048        -1.07%            14,124                4,799                       9,325
2008 (4)        8,369,252             175,524            8,544,776       -50.50%            12,675               3,271                        9,404
2009            7,363,719             142,032            7,505,751       -12.16%            12,541               3,419                        9,122
Source: Lee County Department of Transportation


       (1) Includes motorcycles and 3+ axle vehicles.
       (2) Does not include depreciation.
       (3) Includes $185,370 attributed to Midpoint Memorial Bridge.
       (4) One-way tolling was implemented; tolls are only collected in the westbound direction and traffic figures include only one-way traffic.


                                                   SANIBEL CAUSEWAY TRAFFIC, REVENUE AND EXPENSES
                                                                                                               Operating
                            TOLL PAYING TRAFFIC(1)                                                                and
                                       Other                            Percentage        Gross Toll          Maintenance
Year         Passenger Cars           Traffic(1)           Total         Change           Revenues            Expenses(2)                  Net Revenues
                                                                                        (000's omitted)      (000's omitted)              (000's omitted)
1999            3,346,640             33,365             3,380,005                         $6,317                $1,213                      $5,104
2000            3,361,639             37,856             3,399,495        0.58%             6,512                 1,484                       5,208
2001            3,413,413             43,025             3,456,438        1.68%             6,703                 1,733                       4,970
2002            3,362,488             44,069             3,406,557        -1.44%            6,469                 1,762                       4,707
2003 (3)        3,216,833             32,545             3,249,378        -4.61%            6,184                 2,037                       4,147
2004            3,133,096             59,499             3,192,595        -1.75%            6,363                 1,864                       4,499
2005 (4)        2,832,771             77,683             2,910,454        -8.84%           14,243                 2,187                      12,056
2006            2,777,745             57,588             2,835,333        -2.58%           11,776                 2,200                       9,576
2007            2,839,065             50,718             2,889,783        1.92%            12,270                 2,130                      10,140
2008            2,852,072             73,279             2,925,351        1.23%            12,461                 1,737                      10,724
2009            2,832,446             74,297             2,906,743        -0.64%           12,484                 2,139                      10,345
Source: Lee County Department of Transportation


       (1) Includes motorcycles and 3+ axle vehicles.
       (2) Does not include depreciation.
       (3) In January 2003, the Sanibel Causeway experienced a structural failure of support beams on two of its three spans. In January
           and February 2003, cracks were discovered in all three spans of the Sanibel Causeway, necessitating temporary closure of the
           Sanibel Causeway and the imposition of weight and speed restrictions upon its reopening. These events were the main cause of
           the traffic decrease for 2003.
       (4) Toll increase effective 11/1/04.




                                                                                  194
                                                    Lee County, Florida
                                                SUPPLEMENTAL SCHEDULES
                                      LEE COUNTY TRANSPORTATION FACILITIES
                                                        September 30, 2009
                                                            (unaudited)


                          Revenues, Operating Expenses and Debt Service Coverage
                                                       Last Ten Fiscal Years
                                                      (dollars in thousands)

                                                                              Net
    Fiscal                                     Operating                  Available for     Debt
    Year               Revenues                Expenses                   Debt Service    Service   Coverage
    2000               $29,833                  $5,873                      $23,960       $13,344     1.80
    2001                31,884                   6,430                       25,454        13,340     1.91
    2002                30,630                   6,911                       23,719        11,076     2.14
    2003                32,297                   9,193                       23,104        12,753     1.81
    2004                33,937                   8,453                       25,484        11,784     2.16
    2005                45,164                   9,856                       35,308        12,135     2.91
    2006                44,549                  10,808                       33,741        14,932     2.26
    2007                43,959                  13,129                       30,830        16,206     1.90
    2008                39,395                  11,864                       27,531        16,211     1.70
    2009                37,856                  10,158                       27,698        15,577     1.78




Source: Lee County Clerk of Courts Finance and Records Department




                                                                    195
                                    Lee County, Florida
                               SUPPLEMENTAL SCHEDULES
                              LEE COUNTY PORT AUTHORITY
                                    September 30, 2009
                                       (Unaudited)

The following table lists the airlines serving the Airport, including all airlines operating
passenger service into the Airport which have entered into an Airline-Airport Use and Lease
Agreement with the Authority (the “Signatory Airlines”).

                                 Airlines Serving the Airport1

Domestic Carriers                                        Regionals/Commuters

AirTran Airways*                                         American Eagle
American Airlines*                                       Atlantic Southeast
Continental Airlines*                                    Cape Air
Delta Air Lines *                                        Comair
JetBlue*                                                 Continental Express
Midwest Airlines                                         Mesaba
Northwest Airlines*                                      Pinnacle
Shuttle America                                          Republic
Southwest*
Spirit Airlines*                                         International Air Carriers
Sun Country
United                                                   AirBerlin
US Airways*                                              Air Canada
USA 3000*                                                Westjet
                                                         Sunwing

                                                         Air Cargo Carriers

                                                         Fedex
                                                         United Parcel Service




    1 As of September, 2009. During the peak winter months, a number of other domestic and
    international charter airlines also operate at the Airport.

    * Denotes Signatory Airline as defined in Use Agreements

    Source: Lee County Port Authority




                                                   196
                                              Lee County, Florida
                                         SUPPLEMENTAL SCHEDULES
                                        LEE COUNTY PORT AUTHORITY
                                              September 30, 2009
                                                 (Unaudited)

                                     Airport Enplanements October 2008 - September 2009
                                                                                                           Total
                                                                                                      Enplanements
                      Commercial        Regionals/     International    Domestic           Total       for Month in   Percentage
                      Air Carriers      Commuters       Air Carriers    Charters       Enplanements     Prior Year     Change

October 2008            214,605            8,163          5,392            247           228,407        253,835        -10.0%
November 2008           284,698            7,065          9,325            244           301,332        326,276         -7.6%
December 2008           312,305            9,231         10,210            154           331,900        331,062         0.3%
January 2009            346,795            7,433         11,213            240           365,681        380,871         -4.0%
February 2009           375,325            8,709         10,832            301           395,167        409,682         -3.5%
March 2009              474,417           11,774         12,916            237           499,344        522,298         -4.4%
April 2009              429,351            7,584         11,497            135           448,567        448,190         0.1%
May 2009                263,899            5,040          5,302            261           274,502        303,390         -9.5%
June 2009               226,438            4,501          4,134            226           235,299        249,778         -5.8%
July 2009               236,391            6,273          4,002            326           246,992        252,772         -2.3%
August 2009             220,025            5,341          5,742            241           231,349        227,430         1.7%
September 2009          168,526            6,563          3,578            132           178,799        163,004         9.7%



The following table sets forth the historical enplanements for the Airport by air carrier type, as well as the annual
percentage increase in enplaned passengers.

                                    Historical Enplanements by Carrier Type

                         Fiscal         Commercial     Regionals/      International    Domestic         Airport
                          Year          Air Carriers   Commuters        Air Carriers    Charters          Total

                          2000           2,276,770       168,508          69,001          53,683        2,567,962
                          2001           2,527,503       118,256          79,558          35,225        2,760,542
                          2002           2,347,675       105,176          45,322          36,081        2,534,254
                          2003           2,637,152       129,875          58,395          57,351        2,882,773
                          2004           3,055,423       134,044          70,807          11,914        3,272,188
                          2005           3,495,001       160,366          75,913           9,791        3,741,071
                          2006           3,484,671       224,102          91,865           2,925        3,803,563
                          2007           3,799,938       154,413         103,988           3,597        4,061,936
                          2008           3,644,495       130,160          90,815           3,118        3,868,588
                          2009           3,552,775        87,677          94,143           2,744        3,737,339

                    Compounded Growth
                       2000-2009      5.07%               -7.00%          3.51%          -28.14%         4.26%

Source: Lee County Port Authority




                                                               197
                    Lee County, Florida                                                                  Lee County, Florida
               SUPPLEMENTAL SCHEDULES                                                               SUPPLEMENTAL SCHEDULES
              LEE COUNTY PORT AUTHORITY                                                            LEE COUNTY PORT AUTHORITY
        SOUTHWEST FLORIDA INTERNATIONAL AIRPORT                                              SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                    September 30, 2009                                                                   September 30, 2009
                       (Unaudited)                                                                          (Unaudited)

    HISTORICAL LANDED WEIGHT BY AIRLINE (1000 lbs)                                                  HISTORICAL ENPLANEMENTS BY AIRLINE

                                    FY 2008                  FY 2009                                                 FY 2008                     FY 2009
                           Landed                       Landed
Airline                    Weight             Share     Weight         Share     Airline                     Enplanements      Share     Enplanements      Share


AirTran                      521,789            11.4%     633,304        14.4%   AirTran                           479,573       12.4%         598,940       16.0%
JetBlue                      524,454            11.5%     537,922        12.3%   Delta                             476,417       12.3%         469,521       12.6%
Delta                        537,691            11.8%     523,552        11.9%   JetBlue                           448,815       11.6%         460,345       12.3%
Southwest                    478,364            10.5%     478,166        10.9%   Southwest                         393,970       10.2%         430,973       11.5%
US Airways                   384,345             8.4%     389,282         8.9%   US Airways                        371,331        9.6%         373,647       10.0%
Continental                  372,755             8.2%     319,551         7.3%   Continental                       342,122        8.8%         295,395        7.9%
Northwest                    304,078             6.7%     303,845         6.9%   Northwest                         270,874        7.0%         274,646        7.3%
USA 3000                     253,936             5.6%     231,375         5.3%   American                          239,614        6.2%         201,408        5.4%
American                     246,833             5.4%     223,278         5.1%   Spirit Airlines                   216,970        5.6%         182,102        4.9%
Spirit Airlines              263,035             5.8%     221,148         5.0%   USA 3000                          244,191        6.3%         171,929        4.6%
Cargo                        199,760             4.4%     184,328         4.2%   International Airlines             90,815        2.3%          94,173        2.5%
International Airlines       134,884             3.0%     135,849         3.1%   Sun Country                        51,513        1.3%          39,810        1.1%
Sun Country                   59,009             1.3%      44,992         1.0%   American Eagle                     49,124        1.3%          36,376        1.0%
American Eagle                52,414             1.1%      38,194         0.9%   United                                -          0.0%          30,314        0.8%
United                              611          0.0%      30,085         0.7%   Continental Express                19,888        0.5%          19,893        0.5%
Shuttle America               33,913             0.7%      20,102         0.5%   Shuttle America                    26,024        0.7%          16,249        0.4%
Continental Express           17,595             0.4%      17,765         0.4%   Cape Air                           14,502        0.4%          11,623        0.3%
Cape Air                      15,438             0.3%      14,893         0.3%   Comair                             24,693        0.6%           8,224        0.2%
Comair                        25,625             0.6%      10,044         0.2%   Midwest Airlines                   45,540        1.2%           7,387        0.2%
Midwest Airlines              63,380             1.4%       8,447         0.2%   Pinnacle                           11,993        0.3%           5,200        0.1%
Domestic Charters               6,336            0.1%       6,915         0.2%   Mesaba                                -          0.0%           3,568        0.1%
Pinnacle                      12,596             0.3%       6,016         0.1%   Domestic Charters                   3,118        0.1%           2,714        0.1%
Atlantic Southeast                  -            0.0%       5,849         0.1%   Atlantic Southeast                    -          0.0%           2,631        0.1%
Mesaba                              -            0.0%       4,043         0.1%   Republic Airline                    8,090        0.2%            162         0.0%
Frontier                      44,820             1.0%        270          0.0%   Frontier                           37,541        1.0%            109         0.0%
Republic Airline                9,057            0.2%        150          0.0%   Chautauqua                          1,870        0.0%             -          0.0%
Chautauqua                      1,788            0.0%         -           0.0%
Gulfstream                           17          0.0%         -           0.0%



Total                       4,564,523          100.0%   4,389,365       100.0%                                   3,868,588       100%        3,737,339       100%




Source: Lee County Port Authority




                                                                                         198
                                                                              Lee County, Florida
                                                                         SUPPLEMENTAL SCHEDULES
                                                                        LEE COUNTY PORT AUTHORITY
                                                                  SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                                                              September 30, 2009
                                                                                  (Unaudited)

An Airport's air service is often measured through the distribution of its origin and destination (O & D) markets, which is a function of air travel demands and the
airport's available nonstop service. The following table presents historical data on the Airport's top 30 O&D markets.

                                                    PRIMARY DOMESTIC ORIGIN & DESTINATION PASSENGER MARKETS

                                     Fiscal Year 2008                                                                                     Fiscal Year 2009
                                         Nonstop      Nonstop      Total O&D       Percent of                                                  Nonstop Nonstop         Total O&D Percent of
Rank              Market                 Service       Miles       Passengers        Total                 Rank              Market             Service    Miles       Passengers  Total

   1   Detroit                                            1,007          515,560       6.70%                 1     Detroit                                    1,090      475,330     6.37%
   2   New York (Newark)                                  1,337          462,320       6.01%                 2     Boston                                     1,271      445,850     5.98%
   3   Boston                                             1,265          460,790       5.99%                 3     Chicago (O'Hare)                           1,009      415,740     5.58%
   4   Chicago (O'Hare)                                   1,009          456,130       5.93%                 4     New York (Newark)                          1,337      403,680     5.41%
   5   New York (JFK)                                     1,548          377,060       4.90%                 5     New York (JFK)                             1,548      335,210     4.50%
   6   Minneapolis                                        1,076          316,260       4.11%                 6     Minneapolis                                1,439      290,680     3.90%
   7   Philadelphia                                       1,153          283,940       3.69%                 7     Philadelphia                               1,010      268,560     3.60%
   8   Chicago (Midway)                                     911          254,280       3.30%                 8     Indianapolis                                 966      244,480     3.28%
   9   Indianapolis                                       1,023          244,440       3.18%                 9     Chicago (Midway)                             911      221,940     2.98%
  10   Cleveland                                            956          197,320       2.56%                10     Baltimore                                    932      193,800     2.60%
  11   Baltimore                                          1,032          188,060       2.44%                11     Cleveland                                  1,037      191,530     2.57%
  12   Atlanta                                            1,232          181,460       2.36%                12     Atlanta                                      520      167,420     2.25%
  13   St. Louis                                            895          158,170       2.06%                13     Pittsburgh                                 1,003      154,180     2.07%
  14   Pittsburgh                                           956          150,780       1.96%                14     St. Louis                                  1,009      144,970     1.94%
  15   Washington (National)                                947          143,340       1.86%                15     Washington (National)                        933      131,920     1.77%
  16   Providence                                         1,155          133,420       1.73%                16     Milwaukee                                  1,213      127,400     1.71%
  17   Cincinnati                                           910          127,330       1.65%                17     Buffalo                                    1,192      127,390     1.71%
  18   Milwaukee                                          1,035          125,820       1.64%                18     Cincinnati                                   887      114,060     1.53%
  19   Atlantic City                                        981          116,610       1.52%                19     Atlantic City                                981      109,640     1.47%
  20   Hartford                                           1,293          106,200       1.38%                20     Westchester County                         1,120       99,670     1.34%
  21   Denver                                             1,071          104,450       1.36%                21     Providence                                 1,254       95,600     1.28%
  22   Buffalo                                              998           91,900       1.19%                22     Hartford                                   1,241       92,760     1.24%
  23   Columbus                                             975           89,150       1.16%                23     Denver                                     1,708       88,460     1.19%
  24   Dallas/Ft. Worth                                   1,050           77,190       1.00%                24     Islip                                      1,103       82,030     1.10%
  25   Kansas City                                          946           74,780       0.97%                25     Dallas/Ft. Worth                           1,072       76,720     1.03%
  26   Charlotte                                            918           70,240       0.91%                26     Columbus                                     997       68,760     0.92%
  27   Las Vegas                                          1,252           68,120       0.89%                27     Kansas City                                1,284       63,260     0.85%
  28   Houston                                              760           61,740       0.80%                28     Charlotte                                    648       57,490     0.77%
  29   Flint                                              1,310           56,690       0.74%                29     Los Angeles                                2,459       57,440     0.77%
  30   Nashville                                            919           55,840       0.73%                30     Las Vegas                                  2,287       56,880     0.76%

       Total- Top 30 Markets                                          5,749,390        74.7%                       Total- Top 30 Markets                                5,402,850    72.5%
       Total - All Other Markets                                      1,945,808        25.3%                       Total - All Other Markets                            2,054,283    27.5%
       Total - All Markets                                            7,695,198       100.0%                       Total - All Markets                                  7,457,133   100.0%

       Average                                                                                                     Average
       Stage Length 1                                                                                              Stage Length 1
                                            Airport         1179 miles                                                                          Airport         1177 miles
                                       United States        1064 miles                                                                     United States        1182 miles




                                                                                                199
                                                      Lee County, Florida
                                                 SUPPLEMENTAL SCHEDULES
                                                LEE COUNTY PORT AUTHORITY
                                          SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                                      September 30, 2009
                                                         (Unaudited)

Historical aircraft operations are defined as the arrival or departure of an aircraft. The following table presents historical
data on the Airport's aircraft operations by carrier class.

                                               HISTORICAL AIRCRAFT OPERATIONS

     Fiscal          Commercial       Regionals/      International      Domestic      General                                   Airport
      Year           Air Carriers     Commuters        Air Carriers      Charters      Aviation1    All-Cargo   Military          Total

    2000                   35,786           14,938               886             940       22,161       1,602        1,847        78,160
    2001                   41,096           11,684             1,196             570       20,408       1,588        2,187        78,729
    2002                   36,440           10,666               602             728       15,101       1,616        3,205        68,358
    2003                   40,866           11,554               708             616       17,514       1,660        2,468        75,386
    2004                   47,128           11,298               944             272       19,081       2,140        1,525        82,388
    2005                   58,266           12,950             1,104             198       15,025       2,174        1,794        91,511
    2006                   57,570           13,782             1,198             112       10,973       2,546        1,148        87,329
    2007                   64,622           10,326             1,476             162       11,866       2,336          401        91,189
    2008                   61,708            9,834             1,362             116       13,865       2,242          711        89,838
    2009                   59,780            8,114             1,370             102       12,744       1,608          808        84,526
Compounded
Growth Rate

   2000-2009                 5.87%           -6.56%            4.96%       -21.87%         -5.96%       0.04%       -8.78%          0.87%


                1
                    Also includes activity by miscellaneous air taxis.

Source: Lee County Port Authority




                                                                           200
                                               Lee County, Florida
                                         SUPPLEMENTAL SCHEDULES
                                        LEE COUNTY PORT AUTHORITY
                                  SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                               September 30, 2009
                                              (dollars in thousands)

                                     HISTORICAL STATEMENT OF NET REVENUES1
                                              FISCAL YEARS 2005-2009

OPERATING REVENUES:                                  2005             2006           2007              2008        2009

User Fees                                            $26,912          $38,250        $37,220           $42,112     $41,618
Rentals and Franchise Fees                             1,508            1,682          1,688             2,088       2,495
Concessions                                           29,441           35,932         38,145            37,131      35,171
Interest Revenue                                       2,433            4,921          5,786             2,927         707
Miscellaneous                                            757            4,400            911               738         631
    Total Operating Revenues                          61,051           85,185         83,750            84,996         80,622

                  2
OPERATING EXPENSES :

Salaries and Wages                                    13,231           15,098         16,181            17,774         18,100
Employee Benefits                                      4,657            5,827          6,598             7,447          7,786
Contractual Services,
 Materials and Supplies                                 9,416          14,798         15,196            17,021         15,119
Utilities                                               2,321           4,560          5,438             4,823          4,987
Repairs and Maintenance                                 1,055           2,090          2,298             2,341          2,108
Insurance                                               1,695           2,061          3,975             3,920          2,436
Other                                                   1,412           2,473          1,863             1,614          1,639
Arbitrage Rebate3                                        115              666            130                 1            -
 Total Operating Expenses                             33,902           47,573         51,679            54,941         52,175

NET REVENUES:                                         27,149           37,612         32,071            30,055         28,447

             4
Transfers                                               1,606           2,726           2,911            3,591          3,382
Transfers (Other)                                           0               0               0                0            759

Debt Service Interest                                 13,648           20,507         20,196            19,972         19,611
Principal                                              4,871            5,410          5,670             5,855          6,125
TOTAL DEBT SERVICE:                                   18,519           25,917         25,866            25,827         25,736

BOND SERVICE REQUIREMENT
 COVERAGE BEFORE TRANSFER                                1.47            1.45            1.24             1.16           1.11

BOND SERVICE REQUIREMENT
 COVERAGE AFTER TRANSFER5                                1.55            1.56            1.35             1.30           1.27

1
    Net Revenues are determined in accordance with the bond resolution as excerpted from the audited
    financial statements.
2
    Operating Expenses do not include depreciation, amortization and unpaid Other Post Employment Benefits
    expense ($1,070,000, FY2007; $2,115,000, FY2008; $3,208,000, FY2009) in accordance with the bond resolution.
3
    Annual, accrued arbitrage rebate liability is included as a Current Expense in accordance with the bond
    resolution, but not under applicable GAAP standards. Current amounts payable may be found in
    the Changes in Long-Term Debt table in the footnotes.
4
    Includes transfers from surplus Passenger Facility Charges (PFC) used to pay debt service on the Series 2000
    bonds in accordance with Federal Aviation Administration approvals. Other transfers include a Federal Inspection
    Station user fee of $2.00 per deplaned passenger (FY2009 total $186,000) and a Lee County Port Authority
    discretionary fund transfer of $573,000.
5
    Includes only PFC transfers and does not include any other discretionary fund transfers from the
    airport fund.

Source: Lee County Clerk of Courts Finance and Records Department


                                                                201
                                    LEE COUNTY PORT AUTHORITY
                                  Southwest Florida International Airport
                            PASSENGER FACILITY CHARGE REVENUE REPORT
                                 For Fiscal Year Ending September 30, 2009
                                                 (unaudited)

                         Eligible
 Total Enplaned                                Net PFC Cash
                        Enplaned                                     Interest Income       Total PFC Revenue
   Passengers                                   Collections
                        Passengers

        3,737,339           3,672,450               $14,941,823                 $120,790           $15,062,613




                                     Southwest Florida International Airport
                                    ESTIMATED DEBT SERVICE COVERAGE
                                                Series 1998 Bonds
                                    For Fiscal Year Ending September 30, 2009
                                                    (unaudited)


                                             Actual 2009 PFC
                        Actual PFC                                     Actual debt
                                               debt service
                         Revenues                                     service factor
                                              requirements

                          $15,062,613                $4,067,120                     3.70




Source: Lee County Port Authority




                                                           202
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                   Report on Internal Control Over Financial Reporting and on
              Compliance and Other Matters Based on an Audit of Financial Statements
                  Performed in Accordance with Government Auditing Standards


Board of County Commissioners
Lee County, Florida:

We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of Lee County, Florida (County) as of and for
the year ended September 30, 2009, which collectively comprise the County’s basic financial statements
and have issued our report thereon dated March 1, 2010. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.

Internal Control over Financial Reporting
In planning and performing our audit, we considered the County’s internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements but not for the purpose of expressing an opinion on the effectiveness of the County’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
County’s internal control over financial reporting.

A deficiency in internal control over financial reporting exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A material weakness is a deficiency or combination of
deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and corrected
on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
                                                                 1
                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
This report is intended solely for the information and use of the Board of County Commissioners,
management, others within organization, and federal and state awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties.




March 1, 2010
Certified Public Accountants




                                                  2
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                      Report on Compliance with Requirements Applicable
             to Each Major Federal Program and State Project and on Internal Control
                  Over Compliance in Accordance with OMB Circular A-133 and
                           Chapter 10.550, Rules of the Auditor General


Board of County Commissioners
Lee County, Florida:

Compliance
We have audited the compliance of Lee County, Florida (County) with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement and the requirements described in the Executive Office of the Governor’s State Projects
Compliance Supplement, that are applicable to each of its major federal programs and state projects for the
year ended September 30, 2009. The County’s major federal programs and state projects are identified in
the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major
federal programs and state projects is the responsibility of the County’s management. Our responsibility is
to express an opinion on the County’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General.
Those standards, OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program or state project occurred. An audit includes examining, on a test basis, evidence about the
County’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the County’s compliance with those requirements.

In our opinion, the County complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal programs and state projects for the year ended September 30,
2009.

Internal Control over Compliance
The management of the County is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs and state projects. In planning and performing our audit, we considered the County’s internal
control over compliance with requirements that could have a direct and material effect on a major federal
program or state project in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal

                                                                 3
                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s
internal control over compliance.

A control deficiency in an entity’s internal control over compliance exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
or state project on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the entity’s ability to administer a federal program or state project such
that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
federal program or state project that is more than inconsequential will not be prevented or detected by the
entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program or state project will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the entity’s internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we considered material weaknesses, as defined above.

Schedule of Expenditures of Federal Awards and State Financial Assistance
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the County as of and for the year ended
September 30, 2009, and have issued our report thereon dated March 1, 2010. Our audit was performed for
the purpose of forming opinions on the financial statements that collectively comprise the County’s basic
financial statements. The accompanying schedule of expenditures of federal awards and state financial
assistance is presented for purposes of additional analysis as required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and
Chapter 10.550, Rules of the Auditor General and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects, in relation to the basic financial
statements taken as a whole.

This report is intended solely for the information and use of the Board of County Commissioners,
management, others within the organization, and federal and state awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.




May 6, 2010 except for the schedule
 of expenditures of federal awards and
 state financial assistance which is as
 of March 1, 2010
Certified Public Accountants




                                                     4
       LEE COUNTY, FLORIDA
           Single Audit Reports

      Year ended September 30, 2009

(With Independent Auditors’ Report Thereon)
                                        LEE COUNTY, FLORIDA
                                            Single Audit Reports
                                    Fiscal year ended September 30, 2009


                                             Table of Contents



                                                                                             Page

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters
   Based on an Audit of Financial Statements Performed in Accordance with Government
   Auditing Standards                                                                          1

Report on Compliance with Requirements Applicable to Each Major Federal Program and State
   Project and on Internal Control Over Compliance in Accordance With OMB Circular A-133
   and Chapter 10.550, Rules of the Auditor General                                            3

Schedule of Expenditures of Federal Awards and State Financial Assistance                      5

Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance             9

Schedule of Findings and Questioned Costs                                                     11

Report on Compliance with Requirements Applicable to the Passenger Facility Charge Program
   and on Internal Control Over Compliance                                                    13

Schedule of Passenger Facility Charges (PFCs) Collected and Expended (As Reported to FAA)     15

Notes to the Schedule of Passenger Facility Charges (PFCs) Collected and Expended             16
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                   Report on Internal Control Over Financial Reporting and on
              Compliance and Other Matters Based on an Audit of Financial Statements
                  Performed in Accordance with Government Auditing Standards


Board of County Commissioners
Lee County, Florida:

We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of Lee County, Florida (County) as of and for
the year ended September 30, 2009, which collectively comprise the County’s basic financial statements
and have issued our report thereon dated March 1, 2010. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.

Internal Control over Financial Reporting
In planning and performing our audit, we considered the County’s internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements but not for the purpose of expressing an opinion on the effectiveness of the County’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
County’s internal control over financial reporting.

A deficiency in internal control over financial reporting exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A material weakness is a deficiency or combination of
deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and corrected
on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
                                                                 1
                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
This report is intended solely for the information and use of the Board of County Commissioners,
management, others within organization, and federal and state awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties.




March 1, 2010
Certified Public Accountants




                                                  2
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                      Report on Compliance with Requirements Applicable
             to Each Major Federal Program and State Project and on Internal Control
                  Over Compliance in Accordance with OMB Circular A-133 and
                           Chapter 10.550, Rules of the Auditor General


Board of County Commissioners
Lee County, Florida:

Compliance
We have audited the compliance of Lee County, Florida (County) with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement and the requirements described in the Executive Office of the Governor’s State Projects
Compliance Supplement, that are applicable to each of its major federal programs and state projects for the
year ended September 30, 2009. The County’s major federal programs and state projects are identified in
the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major
federal programs and state projects is the responsibility of the County’s management. Our responsibility is
to express an opinion on the County’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations and Chapter 10.550, Rules of the Auditor General.
Those standards, OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major federal
program or state project occurred. An audit includes examining, on a test basis, evidence about the
County’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination of the County’s compliance with those requirements.

In our opinion, the County complied, in all material respects, with the requirements referred to above that
are applicable to each of its major federal programs and state projects for the year ended September 30,
2009.

Internal Control over Compliance
The management of the County is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal
programs and state projects. In planning and performing our audit, we considered the County’s internal
control over compliance with requirements that could have a direct and material effect on a major federal
program or state project in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal

                                                                 3
                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s
internal control over compliance.

A control deficiency in an entity’s internal control over compliance exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
or state project on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the entity’s ability to administer a federal program or state project such
that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
federal program or state project that is more than inconsequential will not be prevented or detected by the
entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program or state project will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the entity’s internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we considered material weaknesses, as defined above.

Schedule of Expenditures of Federal Awards and State Financial Assistance
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the County as of and for the year ended
September 30, 2009, and have issued our report thereon dated March 1, 2010. Our audit was performed for
the purpose of forming opinions on the financial statements that collectively comprise the County’s basic
financial statements. The accompanying schedule of expenditures of federal awards and state financial
assistance is presented for purposes of additional analysis as required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations and
Chapter 10.550, Rules of the Auditor General and is not a required part of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects, in relation to the basic financial
statements taken as a whole.

This report is intended solely for the information and use of the Board of County Commissioners,
management, others within the organization, and federal and state awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.




May 6, 2010 except for the schedule
 of expenditures of federal awards and
 state financial assistance which is as
 of March 1, 2010
Certified Public Accountants




                                                     4
                                                                          LEE COUNTY, FLORIDA
                                                                   Schedule of Expenditures of Federal Awards
                                                                        and State Financial Assistance
                                                                      Fiscal year ended September 30, 2009

                                                                                            CFDA/                                              Federal/
                                                                                             CSFA                        Grant               State award
                      Federal/State grantor/pass-through grantor                            number                      number                 amount      Expenditures
U.S. Department of Agriculture:
  Natural Resources Conservation Service:
     NRCS Flint Pen Strand                                                                   10.072                      None            $       366,000         3,510
     WHIP-Phase III – Caloosahatchee Regional Pk                                             10.914                 72-4209-4-71-01               19,938        19,937
             Total U.S. Department of Agriculture                                                                                                385,938        23,447
U.S. Department of Commerce:
  National Oceanic and Atmospheric Administration:
     Sea Turtle Hurricane Restoration Grant                                                  11.481                 2006-0114-008                236,703       235,871
             Total U.S. Department of Commerce                                                                                                   236,703       235,871
U.S. Department of Energy:
  Passed through Florida Department of Community Affairs:
     Weatherization Assistance Program (WAP) FY08                                            81.042             08-WX-7H-09-46-01-015             20,334        11,507
     Weatherization Assistance Program (WAP) FY09                                            81.042             09-WX-7W-09-46-01-015            104,412        39,279
     ARRA – Weatherization Assistance Program                                                81.042             10-WX-7X-09-46-01-315             63,150        17,225
             Total U.S. Department of Energy                                                                                                     187,896        68,011
U.S. Environmental Protection Agency:
  Passed through SW Florida Regional Planning Council:
     Effectiveness of Best Management Practices                                              66.456                 CE-97456002-2                250,000        13,310
  Passed through Florida Department of Environmental Protection:
     Capitalization Grants for Clean Water State Revolving Fund                              66.458                   WW392330                10,000,000    10,000,000
     Drinking Water State Revolving Loan                                                     66.468                   DW3610010               20,525,000         1,410
             Total U.S. Environmental Protection Agency                                                                                       30,775,000    10,014,720
U.S. Department of Health & Human Services:
  Passed through Florida Department of Revenue:
     Child Support Enforcement Program (Federal Initiative)                                  93.563                     CD336                   N/A            683,020
  Passed through Florida Department of Community Affairs:
    Low-Income Home Energy Assistance:
       Weatherization WAP-LIHEAP FY08                                                        93.568              08LH-7B-09-46-01-015             44,748        41,115
       Weatherization WAP-LIHEAP FY09                                                        93.568              09LH-7K-09-46-01-015             99,440        41,384
       LIHEAP FY08                                                                           93.568              08EA-7B-09-46-01-015            480,894       213,749
       LIHEAP FY09                                                                           93.568              09EA-7K-09-46-01-015          1,794,382       809,785
             Total program                                                                                                                     2,419,464     1,106,033
     Community Services Block Grant FY09                                                     93.569              09SB-6V-09-46-01-015            249,415       232,436
     ARRA – Community Services Block Grant                                                   93.710              10SB-8B-09-46-01-115            386,809        13,485
             Total program                                                                                                                       636,224       245,921
  Passed through Florida Department of Health:
    Florida Fluoridation Grant                                                               93.991                     COHUJ                    150,000       119,795
             Total U.S. Department of Health & Human Services                                                                                  3,205,688     2,154,769
U.S. Department of Homeland Security:
  Transportation Security Administration:
     RSW-TSA National Explosives Detection Canine Team Prg                                   97.072               HSTS0208HCAN446                150,500       150,500
     RSW-TSA Law Enforcement Officer Reimbursement                                           97.090               HSTS0208HSLR084              1,242,606       225,587
  Passed through Florida Department of Community Affairs:
    Tropical Storm Fay                                                                       97.036             08-PA-B9-09-46-13-640           N/A            646,363
    Matlacha Pass Hydrologic Restoration                                                     97.039             09-HM-37-09-46-01-042            499,541       479,691
     EMPG Additional Funds                                                                   97.042              09-BG-20-09-46-01-426            34,736        34,736
     EMPA Base Grant FY09                                                                    97.042              09-BG-03-09-46-01-130           109,000        20,871
             Total program                                                                                                                       143,736        55,607
    SHSGP State Homeland Security Grant                                                      97.067              08-DS-60-09-46-01-237            44,294        13,420
    SHSGP Region 6                                                                           97.067              08-DS-60-09-46-01-194            75,000        34,164
    SHSGP Region 6                                                                           97.067              09-DS-51-09-46-01-385            75,000        39,037
    Citizens Corps Council                                                                   97.067              08-CC-64-09-46-01-074            11,600         9,235
    Citizens Corps Council                                                                   97.067              09-CC-49-09-46-01-419            10,000         5,488
    SHSGP-EDICS/Edwards Service Contract                                                     97.067              10-DS-31-09-49-01-024            21,778           700
  Passed through Florida Department of Law Enforcement:
    Critical Infrastructure Hardening Project                                                97.067             2009-LETP-LEE-1-S3-064           161,471       161,471
    RSW-Digital Surveillance                                                                 97.067             2008-LETP-LEE-1-S3-014           500,000       442,859
    Issue 813 Aviation Response and Support                                                  97.067             2009-SHSP-LEE-1-V3-022            70,000        60,893
    Issue 806A Enhancement of SWAT and EOD Regional Team Capability                          97.067             2010-SHSP-LEE-1-V3-069           133,576        37,460
  Passed through Florida Department of Transportation:
    Issue 8 SWAT & EOD Sustainment                                                           97.067             2008-SHSP-LEE-1-S4-004            37,100        26,511
             Total program                                                                                                                     1,139,819       831,238
  Passed through Florida Department of Financial Services:
    USAR Task Force 6                                                                        97.004              08DS-60-13-00-16-373            212,320         6,982
  Passed through United Way of Lee County:
    Emergency Food and Shelter Cluster:
       FEMA Food & Shelter FY09                                                              97.024                      N/A                     100,000       100,000
       ARRA – EFSP Program                                                                   97.114                      None                     75,000        55,198
             Total program                                                                                                                       175,000       155,198
             Total U.S. Department of Homeland Security                                                                                        3,563,522     2,551,166



                                                                                                                                                             (Continued)


                                                                                        5
                                                                           LEE COUNTY, FLORIDA
                                                                   Schedule of Expenditures of Federal Awards
                                                                        and State Financial Assistance
                                                                      Fiscal year ended September 30, 2009

                                                                                            CFDA/                                              Federal/
                                                                                             CSFA                       Grant                State award
                      Federal/State grantor/pass-through grantor                            number                     number                  amount      Expenditures
U.S. Department of Housing & Urban Development:
  CDBG Urban County Entitlement – Year 15                                                    14.218                B-04-UC-12-0013       $     2,568,000        58,227
  CDBG Urban County Entitlement – Year 16                                                    14.218                B-05-UC-12-0013             2,449,422        37,993
  CDBG Urban County Entitlement – Year 17                                                    14.218                B-06-UC-12-0013             2,220,523       180,878
  CDBG Urban County Entitlement – Year 18                                                    14.218                B-07-UC-12-0013             2,179,588       862,211
  CDBG Urban County Entitlement – Year 19                                                    14.218                B-08-UC-12-0013             2,122,575       531,219
  CDBG Neighborhood Stabilization Program                                                    14.218                B-08-UN-12-0009            18,243,867     1,160,151
  ARRA - CDBG                                                                                14.253                B-09-UY-12-0013               576,497         1,698
             Total program                                                                                                                    30,360,472     2,832,377
  Emergency Shelter Grant FY08                                                               14.231                S-07-UC-12-0023                95,776         2,648
  Emergency Shelter Grant FY09                                                               14.231                S-08-UC-12-0023                93,910        93,910
             Total program                                                                                                                       189,686        96,558
  Supportive Housing Program (SHP – FY05)                                                    14.235                     Various                2,107,267        53,662
  Supportive Housing Program (SHP – FY06)                                                    14.235                     Various                1,770,295        13,409
  Supportive Housing Program (SHP – FY07)                                                    14.235                     Various                1,816,392         2,677
  Supportive Housing Program (SHP – FY08)                                                    14.235                     Various                1,969,787     1,188,591
  Supportive Housing Program (SHP – FY09)                                                    14.235                     Various                1,732,019       517,620
  SHP LIFT Program (FY08)                                                                    14.235                  FL14B703003                 119,722        74,941
  SHP LIFT Program (FY09)                                                                    14.235                FL0264B4D030801               119,722        48,790
             Total program                                                                                                                     9,635,204     1,899,690
  SHP Shelter Plus Care (FY09)                                                               14.238                    Various                   264,060        88,570
  HOME – Year 14 (FY06)                                                                      14.239                M-05-UC-12-0210               809,030       145,692
  HOME – Year 15 (FY07)                                                                      14.239                M-06-UC-12-0210               749,401        27,146
  HOME – Year 16 (FY08)                                                                      14.239                M-07-UC-12-0210               721,979       520,806
  HOME – Year 17 (FY09)                                                                      14.239                M-08-UC-12-0210               691,060       293,392
  HOPE III Sale Proceeds                                                                     14.239                H3-95-FL0003-I-A             N/A             39,011
             Total program                                                                                                                     2,971,470     1,026,047
  ARRA – Homeless Prevention and Rapid Re-Housing Program                                    14.257                     None                     881,538         5,626
  Passed through Florida Department of Community Affairs:
    CDBG Disaster Recovery                                                                   14.228             07-DB-3V-09-46-01-Z02          1,364,931       271,122
    CDBG Disaster Recovery Mitigation                                                        14.228             08-DB-D3-09-46-01-A02            367,103       254,497
             Total program                                                                                                                     1,732,034       525,619
  Passed through Florida Department of Health & Health Planning Council:
    HOPWA Renewal (7/1/08-6/30/09)                                                           14.241                   CODK7-5                     70,140        52,605
    HOPWA Renewal (7/1/09-6/30/10)                                                           14.241                   CODU3-5                     49,332        12,333
             Total program                                                                                                                       119,472        64,938
             Total U.S. Department of Housing & Urban Development                                                                             46,153,936     6,539,425
U.S. Department of the Interior:
  U.S. Fish & Wildlife Service:
     Caloosahatchee Creeks Preserve Wetlands Restoration                                     15.623                   FL-N71B                     75,000        75,000
     Caloosahatchee Creeks Preserve                                                          15.630                  401816G115                   25,000        25,000
     Partners for Wildlife (Wild Turkey Strand)                                              15.631                  41545-04HR                   10,000        10,000
  Passed through Florida Department of Environmental Services:
     Prairie Pines Preserve                                                                  15.916                     LW561                    200,000       200,000
             Total U.S. Department of the Interior                                                                                               310,000       310,000
U.S. Department of Justice:
  Human Trafficking Task Force                                                               16.320                2005-VT-BX-1162               450,000        29,013
  Human Trafficking Task Force                                                               16.320                2008-VT-BX-0011               250,000       114,397
             Total program                                                                                                                       700,000       143,410
  Gang Citation Equal Justice Initiative                                                     16.580                2007-DD-BX-0660               235,686        54,546
  State Criminal Alien Assistance ( SCAAP)                                                   16.606                2006-F3268-FL-AP              191,781        14,994
  State Criminal Alien Assistance ( SCAAP)                                                   16.606                2008-F2074-FL-AP              201,361       148,969
             Total program                                                                                                                       393,142       163,963
  Edward Byrne JAG - 2007                                                                    16.738                 2007-DJ-BX-0378              147,072        11,703
  Edward Byrne JAG Program-Auto Theft                                                        16.738                 2008-DJ-BX-0121               52,784        32,466
  Pharmaceutical Investigations Law Enforcement Strategy                                     16.738             2009-JAGC-LEE-1-T7-116            84,988        65,960
  Passed through Florida Department of Law Enforcement:
    Edward Byrne Memorial JAG-PILS Unit (FY 07-08)                                           16.738          2008-JAGC-LEE-1-Q9-201              259,516        23,688
             Total program                                                                                                                       544,360       133,817
  Passed through Florida Department of Children & Families:
    STOP Violence Against Women                                                              16.588                    LN 820                    138,821        87,681
    STOP Violence Against Women                                                              16.588                    LN 920                    136,386        41,219
             Total program                                                                                                                       275,207       128,900
  Passed through Florida Department of Law Enforcement:
    Paul Coverdale Grant                                                                     16.742                2008-CD-BX-0020                 6,136           384
             Total U.S. Department of Justice                                                                                                  2,154,531       625,020




                                                                                                                                                             (Continued)


                                                                                        6
                                                                            LEE COUNTY, FLORIDA
                                                                     Schedule of Expenditures of Federal Awards
                                                                          and State Financial Assistance
                                                                        Fiscal year ended September 30, 2009

                                                                                              CFDA/                                             Federal/
                                                                                               CSFA                       Grant               State award
                      Federal/State grantor/pass-through grantor                              number                     number                 amount      Expenditures
U.S. Department of Transportation/non-FAA:
  Federal Transit Administration:
     Federal Transit Cluster – Formula Grants:
       FTA 5309 Capital                                                                        20.507                 FL-03-0280          $     1,934,548        29,513
       FTA 5307 Capital                                                                        20.507                 FL-90-X532                1,984,659        56,938
       FTA 5307 Capital FY06 Non-Urbanized Area Formula                                        20.507                 FL-90-X559                3,411,557        63,003
       USC 5307 Capital FY06 Urbanized Area Formula                                            20.507                 FL-90-X596                3,508,619        18,956
       USC 5307 Capital FY06 Urbanized Area Formula                                            20.507                 FL-90-X597                3,525,246       450,803
       USC 5307 Capital FY07 Urbanized Area Formula                                            20.507                 FL-90-X623                4,102,233       602,433
       USC 5307 Urbanized Area Formula                                                         20.507                 FL-90-X647                4,386,928     2,612,248
       ARRA / USC 5311 Urbanized Area Grant                                                    20.507                FL-96-X006-02              6,206,681     1,053,845
             Total program                                                                                                                     29,060,471     4,887,739
     FTA 5316 Job Access Reverse Commute Grant                                                 20.516                  FL-37-X027                 471,459         6,062
     FTA 5317 New Freedom Grant                                                                20.521                  FL-57-X005                 347,953         1,991
  Alternative Transp. in Parks & Public Lands – Ding Darling
     Nat’l Wildlife Refuge                                                                     20.520                  FL-20-00001                700,000       455,305
  Passed through Florida Department of Transportation:
    Highway Planning and Construction Cluster:
       Value Price Queue Jump (Metro Pkwy @ Colonial Blvd)                                     20.205                   ANR10                   1,069,000       324,384
       Landscaping Improvements (I75 @ SR80)                                                   20.205                   ANW02                     100,000       100,000
       Traffic Control Device System                                                           20.205                    AO357                    220,321        22,032
       Real Time LAP – Colonial Blvd.                                                          20.205                    AP278                    160,000       126,663
       Countywide Signal Retiming                                                              20.205                414084-1-38-01               855,500       187,708
       Sara Ave LAP                                                                            20.205                    AP877                    200,000        59,396
       ARRA – Homestead Rd @ Milwaukee                                                         20.205                    APH61                    100,000        17,671
             Total program                                                                                                                      2,704,821       837,854
     USC 5303 Planning FY08 (Federal Portion)                                                  20.505                    AOZ59                    140,667       140,667
     USC 5311 Non Urban Area Public Transit Services                                           20.509                    AOV97                    735,005       392,013
     LCSO Roadway Safety Program                                                               20.600                    APE40                     45,755        45,288
     Lee County Aggressive Driving Program                                                     20.600                    APH51                     80,000        54,772
     Lee County Impaired Driving Program                                                       20.600                    APA76                     37,920        22,456
             Total program                                                                                                                        163,675       122,516
     Underage Drinking Prevention Initiative                                                   20.601                    APG84                     30,000        29,834
             Total U.S. Department of Transportation/non-FAA                                                                                   34,354,051     6,873,981
U.S. Department of Transportation/FAA:
  Federal Aviation Administration:
     FMY-Construct Apron                                                                       20.106               3-12-0027-15-2008           6,118,766     5,576,550
     RSW-Construct Airport Rescue & Firefighting Building (Design)                             20.106              3-12-0135-046-2009           1,667,963     1,209,420
             Total U.S. Department of Transportation/FAA                                                                                        7,786,729     6,785,970
U.S. Department of the Treasury:
  Federal Forfeiture – Treasury                                                                21.000                     None                   N/A             17,608
  Federal Forfeiture – Justice                                                                 21.000                     None                   N/A            530,663
             Total U.S. Department of the Treasury                                                                                               N/A            548,271
             Total Expenditures of Federal Awards                                                                                         $   129,113,994    36,730,651
Department of Children and Families:
  State of Florida Challenge Grant FY09                                                        60.014                   HFZ91                      57,600        54,310
  Florida Homeless Housing Grant                                                               60.015                   HFZ94                     191,900       191,900
  Criminal Justice Mental Health Grant                                                         60.115               MOU #LHZ100809                997,698       324,945
             Total Department of Children and Families                                                                                          1,247,198       571,155
Department of Community Affairs:
  FCT Wild Turkey Strand 2020                                                                  52.002             05-CT-E5-04-F4-A1-031         2,529,995        64,476
  EMPA Base Grant FY09                                                                         52.008             09-BG-03-09-46-01-130            98,726        98,726
  Hazardous Material Emergency Response Plan                                                   52.023              09CP-04-09-46-01-033             9,676         9,676
  Florida Housing Finance Corporation:
     SHIP YR12 (State FY06-07)                                                                 52.901                    LB014                  3,218,464     1,816,034
     SHIP YR13 (State FY07-08)                                                                 52.901                    LB015                  3,318,641       662,541
     SHIP YR14 (State FY08-09)                                                                 52.901                    LB016                  3,718,567       300,708
     SHIP/Florida Homebuyers Opportunity Program                                               52.901                     None                    388,633        14,085
             Total program                                                                                                                     10,644,305     2,793,368
     Hurricane Recovery Housing Assistance Plan                                                52.902                     None                  3,337,194       460,641
             Total Department of Community Affairs                                                                                             16,619,896     3,426,887
Department of Environmental Protection:
  Lee County Shore Protection Projects                                                         37.003                    99LE1                  9,041,936        93,128
  Blind Pass Ecozone Restoration Project                                                       37.003                    05LE1                  1,149,923       724,108
  Bonita Beach Renourishment Project                                                           37.003                    01LE1                    868,724         3,926
             Total program                                                                                                                     11,060,583       821,162




                                                                                                                                                              (Continued)


                                                                                          7
                                                                            LEE COUNTY, FLORIDA
                                                                     Schedule of Expenditures of Federal Awards
                                                                          and State Financial Assistance
                                                                        Fiscal year ended September 30, 2009

                                                                                               CFDA/                                     Federal/
                                                                                                CSFA                  Grant            State award
                      Federal/State grantor/pass-through grantor                               number                number              amount      Expenditures
  FDEP Caloosahatchee Creeks Preserve                                                          37.039               LP6816         $       350,000       271,886
  Gator Slough Watershed Management Improvements                                               37.039               WAP037               1,000,000       265,503
  Matlacha Pass Hydrologic Restoration                                                         37.039               LP6752                 250,000       250,000
  Popash Creek Project                                                                         37.039               LP6838                 200,000        54,375
             Total program                                                                                                               1,800,000       841,764
             Total Department of Environmental Protection                                                                               12,860,583     1,662,926
Florida Fish and Wildlife Conservation Commission
   Social Marketing & Boating Safety Program                                                   77.006                 08086                 83,636        20,000
             Total Florida Fish and Wildlife Conservation Commission                                                                        83,636        20,000
Department of Health:
  EMS County Award FY08                                                                        64.005                 C8036                175,049        60,288
             Total Department of Health                                                                                                    175,049        60,288
Department of Juvenile Justice:
  DJJ Neighborhood Accountability Board FY08-09                                                80.029                NB-707                 44,218        30,894
  DJJ Neighborhood Accountability Board FY09-10                                                80.029                NB-707                 44,218        10,884
             Total Department of Juvenile Justice                                                                                           88,436        41,778
Department of Management Services:
  Wireless 911 Board:
     E911 State Grant                                                                          72.002                 None                 345,000       238,988
             Total Department of Management Services                                                                                       345,000       238,988
Department of State:
  Division of Library & Information Services:
     NW Regional Library Construction                                                          45.020               05-PLC-26              500,000       150,000
     Library State Operating – State Aid FY06                                                  45.030               06-ST-27             1,182,820        18,198
     Library State Operating – State Aid FY07                                                  45.030               07-ST-27             1,164,282        86,715
     Library State Operating – State Aid FY08                                                  45.030               08-ST-27             1,043,576       506,702
             Total program                                                                                                               3,390,678       611,615
             Total Department of State                                                                                                   3,890,678       761,615
Office of Tourism, Trade, and Economic Development:
  Danley Drive/Metro Parkway Realignment                                                       31.002               OT07-165               863,160        12,292
             Total Office of Tourism, Trade, and Economic Development                                                                      863,160        12,292
Department of Transportation/non-FAA:
  Transit Block Grant                                                                          55.010                AOV96               1,385,817     1,385,817
  Passenger Amenities                                                                          55.012                 AO006                 75,000        33,863
  US 41 Transit Corridor Program                                                               55.013                AOR30               4,648,997     1,207,981
  Toll Facility Revolving Trust Fund Loan-Colonial Blvd Expressway                             55.019                AOE15               1,500,000        39,390
  TRIP – Colonial Blvd                                                                         55.026             420990-1-58-01         4,700,000       323,306
  Alico Rd & I75 Irrigation Retrofit                                                            N/A               200966-1-58-01            62,734        43,553
  Value Pricing Queue Jump (Metro Pkwy @ Colonial Blvd)                                         N/A                  ANR10                 133,625        29,717
  USC 5303 Planning FY08 (State Portion)                                                        N/A                  AOZ59                  17,583        17,583
             Total Department of Transportation/non-FAA                                                                                 12,523,756     3,081,210
Department of Transportation/FAA:
  Terminal Expansion Airside Design & Construction-RSW                                         55.004                AOD19              27,096,000     2,577,996
  Design & Construct Terminal Building – FMY                                                   55.004                AL433               2,445,632        44,562
  Fuel Farm – FMY                                                                              55.004                ANU99                 206,000       183,170
  Preliminary Design 6R/24L Phase I Parallel Runway – RSW                                      55.004                AOK54              17,266,761       988,849
  General Aviation Terminal Airside Development & Apron                                        55.004                AP902                 154,000       154,000
             Total program                                                                                                              47,168,393     3,948,577
  I-75 Access Design – RSW                                                                     55.014                AD921               1,441,455       594,224
             Total Department of Transportation/FAA                                                                                     48,609,848     4,542,801
             Total expenditures of state financial assistance                                                                      $    97,307,240    14,419,940


N/A = Not Available


See accompanying notes to Schedule of Expenditures of Federal Awards and State Financial Assistance.




                                                                                          8
                                          LEE COUNTY, FLORIDA
                              Notes to Schedule of Expenditures of Federal Awards
                                         and State Financial Assistance
                                     Fiscal year ended September 30, 2009



(1)   Basis of Presentation
      The accompanying schedule of expenditures of federal awards and state financial assistance (Schedule)
      summarizes the expenditures incurred under all federal programs and state projects by Lee County, Florida
      for the fiscal year ended September 30, 2009 which are recognized on the accrual basis of accounting. The
      information in this Schedule is presented in accordance with the requirements of the U.S. Office of
      Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Nonprofit
      Organizations, Section 215.97, Florida Statutes, and Rules of the Auditor General, Chapter 10.550. For
      purposes of this Schedule, federal programs and state projects include all grants and contracts entered into
      directly between Lee County, Florida and agencies and departments of the federal or state government.
      Federal programs or state projects passed through other government agencies, if any, are also included in
      the Schedule.

(2)   Indirect Costs
      Lee County, Florida provides certain services and facilities to federal and state programs such as
      disbursing, banking, general data processing, office space, and furnishings. Costs for these services are
      allocated based on certain pre-approved allocation criteria. Lee County, Florida allocated costs for these
      indirect services to the Department of Housing and Urban Development’s CDBG Grant (CFDA #14.218)
      in the amount of $19,031.




                                                       9                                             (Continued)
                                          LEE COUNTY, FLORIDA
                             Notes to Schedule of Expenditures of Federal Awards
                                        and State Financial Assistance
                                     Fiscal year ended September 30, 2009



(3)   Subrecipients
      Of the federal and state expenditures presented in the Schedule, Lee County, Florida provided awards to
      subrecipients as follows:
                                                                                                Amount
                                                                                               provided to
        CFDA #                                   Federal program                              subrecipients
         14.218       CDBG Urban County Entitlement – Year 16                             $         33,805
         14.218       CDBG Urban County Entitlement – Year 17                                       35,430
         14.218       CDBG Urban County Entitlement – Year 18                                       92,243
         14.218       CDBG Urban County Entitlement – Year 19                                      195,982
         14.218       Neighborhood Stabilization Program                                           563,439
         14.228       CDBG Disaster Recovery Mitigation                                             43,260
         14.231       Emergency Shelter Grant FY08                                                   2,648
         14.231       Emergency Shelter Grant FY09                                                  89,315
         14.235       Supportive Housing Program (SHP – FY05)                                       51,637
         14.235       Supportive Housing Program (SHP – FY06)                                       13,409
         14.235       Supportive Housing Program (SHP – FY07)                                        2,399
         14.235       Supportive Housing Program (SHP – FY08)                                    1,098,553
         14.235       Supportive Housing Program (SHP – FY09)                                      540,306
         14.239       HOME – Year 14 (FY06)                                                         50,000
         14.239       HOME – Year 15 (FY07)                                                          1,000
         14.239       HOME – Year 16 (FY08)                                                         86,314
         14.239       HOME – Year 17 (FY09)                                                         16,751
         93.710       ARRA – Community Services Block Grant                                         13,485
                             Total federal program transfers to subrecipients             $      2,929,976


                                                                                                Amounts
                                                                                               provided to
        CSFA #                                     State project                              subrecipients
         52.901       SHIP YR12 (State FY06-07) (LB014)                                   $      1,546,130
         52.901       SHIP YR13 (State FY07-08) (LB015)                                            811,047
         52.901       SHIP YR14 (State FY08-09) (LB016)                                            132,702
         52.902       Hurricane Recovery Housing Assistance Plan                                   460,641
         60.014       State of Florida Challenge Grant FY09                                         39,910
         60.015       Florida Homeless Housing Grant                                               190,350
         60.115       Criminal Justice Mental Health Grant                                         324,945
                             Total state projects transfers to subrecipients              $      3,505,725




                                                        10
                                             LEE COUNTY, FLORIDA
                                    Schedule of Findings and Questioned Costs
                                         Fiscal year ended September 30, 2009



(1)   Summary of Auditors’ Results
      Financial Statements:

      Type of auditors’ report issued:                             Unqualified

      Internal control over financial reporting:

      • Material weakness(es) identified?                                 Yes           X    No
      • Significant deficiency(ies) identified that are not
        considered to be material weaknesses?                             Yes           X    None reported

      Noncompliance material to financial statements noted?               Yes           X    No

      Federal Awards:

      Internal control over major programs:

      • Material weakness(es) identified?                                 Yes           X    No
      • Significant deficiency(ies) identified that are not
        considered to be material weaknesses?                             Yes           X    None reported

      Type of auditors’ report issued on compliance for
      major programs:                                              Unqualified

      Any audit findings disclosed that are required to
      be reported in accordance with Section 510(a)
      Circular A-133?                                                     Yes           X    No

      Identification of major programs:
                   CFDA #                                         Federal Programs
                    14.218               Community Development Block Grant (CDBG)
                                         Federal Transit Cluster:
                    20.507                Formula Grants
                                         Highway Planning and Construction Cluster:
                    20.205                Transportation Improvement Grants
                    66.458               Capitalization Grants for Clean Water State Revolving Funds
                    93.568               Low-Income Home Energy Assistance
                                         Emergency Food and Shelter Cluster:
                    97.024                Emergency Food and Shelter National Board Program
                    97.114                ARRA Emergency Food and Shelter National Board Program


      The threshold for distinguishing Type A and Type B programs was $1,101,919 for federal programs.
      Auditee qualified as low-risk auditee?                          X   Yes                No

                                                          11                                           (Continued)
                                           LEE COUNTY, FLORIDA
                                   Schedule of Findings and Questioned Costs
                                      Fiscal year ended September 30, 2009



      State projects:

      Internal control over major projects:

      • Material weakness(es) identified?                               Yes            X    No
      • Significant deficiency(ies) identified that are not
        considered to be material weaknesses?                           Yes            X    None reported

      Type of auditors’ report issued on compliance for
      major projects:                                           Unqualified

      Any audit findings disclosed that are required to be
      reported in accordance with Chapter 10.550?                       Yes            X    No

      Identification of major projects:
                   CSFA #                                         State Projects
                    37.003            Beach Erosion Control Program
                    37.039            Statewide Surface Water Restoration and Wastewater Program
                    55.004            Aviation Development Grants
                    55.013            Transit Corridor Program
                    52.902            Hurricane Recovery Housing Assistance Plan


      The threshold for distinguishing Type A and Type B projects was $432,598 for state projects.

(2)   Findings Relating to the Financial Statements Reported in accordance with Government Auditing
      Standards: None

(3)   Findings and Questioned Costs Relating to Major Federal Programs: None

(4)   Findings and Questioned Costs Relating to Major State Projects: None




                                                        12
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                              Report on Compliance with Requirements
                         Applicable to the Passenger Facility Charge Program
                              and on Internal Control Over Compliance


Board of County Commissioners
Lee County, Florida:

Compliance
We have audited the compliance of Lee County, Florida (County) with the compliance requirements
described in the Passenger/Facility Charge Audit Guide for Public Agencies, issued by the Federal
Aviation Administration (the Guide) for its passenger facility charge program for the year ended
September 30, 2009. Compliance with the requirements of laws, regulations, contracts and grants
applicable to its passenger facility charge program is the responsibility of the County’s management. Our
responsibility is to express an opinion on the County’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and the
Guide require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on the passenger facility charge program occurred. An audit includes examining, on a test
basis, evidence about the County’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion. Our audit does not provide a legal determination of the County’s
compliance with those requirements.

In our opinion, the County complied, in all material respects, with the requirements referred to above that
are applicable to its passenger facility charge program for the year ended September 30, 2009.

Internal Control over Compliance
The management of the County is responsible for establishing and maintaining effective internal control
over compliance with the requirements of laws, regulations, contracts and grants applicable to the
passenger facility charge program. In planning and performing our audit, we considered the County’s
internal control over compliance with requirements that could have a direct and material effect on the
passenger facility charge program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the entity’s internal control over compliance.




                                                             13
                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
A control deficiency in an entity’s internal control over compliance exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,
that adversely affects the entity’s ability to administer a federal program such that there is more than a
remote likelihood that noncompliance with a type of compliance requirement of a federal program that is
more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in the entity’s internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above.

Schedule of Passenger Facility Charges Collected and Expended
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the County as of and for the year ended
September 30, 2009, and have issued our report thereon dated March 1, 2010. Our audit was performed for
the purpose of forming opinions on the financial statements that collectively comprise the County’s basic
financial statements. The accompanying schedule of passenger facility charges collected and expended is
presented for purposes of additional analysis as specified in the Guide and is not a required part of the
basic financial statements. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in
relation to the financial statements taken as a whole.

This report is intended solely for the information and use of the Board of County Commissioners,
management, others within the organization, and the Federal Aviation Administration and is not intended
to be and should not be used by anyone other than these specified parties.




May 6, 2010, except for the schedule of
 passenger facility charges collected and
 expended which is as of March 1, 2010
Certified Public Accountants




                                                 14
                                                                            LEE COUNTY, FLORIDA
                                              Schedule of Passenger Facility Charges (PFCs) Collected and Expended (As reported to FAA)
                                                                           Year ended September 30, 2009


                                                                                                                                             Cumulative      Cumulative
                                               Quarter ended      Quarter ended      Quarter ended        Quarter ended      Year ended      totals as of    totals as of
                                               December 31,        March 31,           June 30,           September 30,     September 30,   September 30,   September 30,
                                                   2008               2009               2009                 2009              2009            2008            2009
Collections:
  PFCs collected                          $        3,564,515          4,489,649            3,655,463         3,138,874        14,848,501     142,077,169     156,925,670
  Interest earned                                     27,364             31,878               31,070            30,478           120,790       7,954,654       8,075,444
             Total collections            $        3,591,879          4,521,527            3,686,533         3,169,352        14,969,291     150,031,823     165,001,114
Expenditures on approved PFC
  projects included in:
     Application No. 1
        92-01-C-00-RSW                    $           23,119             23,119                  23,119        23,119             92,476      18,735,711      18,828,187
     Adjustments to Application No. 1
        92-01-C-00-RSW                                   —                  —                       —              —                  —       (6,286,802)     (6,286,802)
                                                      23,119             23,119                  23,119        23,119             92,476      12,448,909      12,541,385
     Application No. 2
       93-02-U-00-RSW                                    —                  —                       —              —                  —        9,711,377       9,711,377
     Application No. 3
       94-03-U-00-RSW                                351,476            351,476                 351,476       351,476           1,405,904     72,832,098      74,238,002
     Application No. 4
       97-04-U-00-RSW                                 15,935             15,935                  15,935        15,935             63,740       3,441,517       3,505,257
     Application No. 5
       97-04-U-01-RSW                              1,506,621            767,024            1,322,650         1,477,463          5,073,758     57,430,615      62,504,373
     Application No. 6
       06-06-C-00-RSW                                    —                  —                       —              —                  —        4,821,352       4,821,352
             Total expenditures           $        1,897,151          1,157,554            1,713,180         1,867,993          6,635,878    160,685,868     167,321,746


See accompanying notes to schedule of passenger facility charges collected and expended.




                                                                                           15
                                        LEE COUNTY, FLORIDA
                                   Notes to Schedule of Passenger Facility
                                     Charges Collected and Expended
                                    Fiscal year ended September 30, 2009



(1)   General
      The accompanying schedule of passenger facility charges collected and expended presents the activity of
      all passenger facility charges of Lee County, Florida.

(2)   Basis of Accounting
      The accompanying schedule of passenger facility charges collected and expended is presented using the
      cash basis of accounting.




                                                    16
                                KPMG LLP
                                Suite 1700
                                100 North Tampa Street
                                Tampa, FL 33602




May 6, 2010

The Board of County Commissioners
Lee County, Florida

Ladies and Gentlemen:

We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of Lee County, Florida (the County), as of and
for the year ended September 30, 2009, which collectively comprise the County’s basic financial
statements, and have issued our report thereon dated March 1, 2010.

We conducted our audit in accordance with U.S. generally accepted auditing standards; the standards
applicable to financial statements contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audit of States, Local Governments, and Non-
Profit Organizations. We have also issued our report dated March 1, 2010 on our consideration of the
County’s internal control over financial reporting and on our test of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements and other matters. We have also issued our report
dated May 6, 2010, on our consideration of the County’s internal control over compliance and on our tests
of its compliance in accordance with OMB Circular A-133. Disclosures in those reports should be
considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of governmental entity audits performed in the State of Florida
and require that certain items be addressed in this letter.

The Rules of the Auditor General Section 10.554(1)(i)1, require that we address in the management letter,
if not already addressed in the auditors’ report on internal control over financial reporting and compliance
and other matters, whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. There were no findings or
recommendations made in the preceding annual financial audit report.

The Rules of the Auditor General Section 10.554(1)(i)2, require that we determine whether or not the
County complied with Section 218.415, Florida Statutes, regarding the investment of public funds. In
connection with our audit, nothing came to our attention that caused us to believe that the County had not
complied with Section 218.415, Florida Statutes.

The Rules of the Auditor General Section 10.554(1)(i)3, require that we address in the management letter,
if not already addressed in the auditors’ report on internal control over financial reporting and on
compliance and other matters, any recommendations to improve the County’s financial management. In
connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)4, require that we address in the management letter
any violations of provisions of contracts, or grant agreements or abuse that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with our audit, we did not
have any such findings.



                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
The Board of County Commissioners
Lee County, Florida
May 6, 2010
Page 2


The Rules of the Auditor General, Section 10.554(1)(i)5, provide for disclosure in the management letter
based on the auditors’ professional judgment of the following matters that have an inconsequential effect
on the financial statements, considering both quantitative and qualitative factors, if not already addressed in
the auditors’ report on internal control over financial reporting and on compliance and other matters:

(a)   Violations of provisions of contracts, or grant agreements, fraud, illegal acts, or abuse

(b)   Control deficiencies that are not significant deficiencies.

The results of our audit disclosed no violations of provisions of contracts, or grant agreements, fraud,
illegal acts, or abuse, or other control deficiencies that are not significant deficiencies.

The Rules of the Auditor General Section 10.554(1)(i)6, also require that the name or official title and legal
authority for the primary government and each component unit of the reporting entity be disclosed in the
management letter, unless disclosed in the notes to the financial statements. In that regard, the County was
established by the Constitution of the State of Florida, Article VIII, Section 1(d).

The Rules of the Auditor General Section 10.554(1)(i)(7)a, require that a management letter include a
statement as to whether the County is in a state of financial emergency as a consequence of the conditions
described in Section 218.503(1), Florida Statutes. Management of the County has determined that the
County is not in a state of financial emergency as defined in Section 218.503(1), Florida Statutes. In
connection with our audit, nothing came to our attention that would indicate that the County had met any
of the conditions described in Section 218.503(1), Florida Statutes.

The Rules of the Auditor General Section 10.554(1)(i)(7)b, require that we determine whether the annual
financial report for Lee County, Florida for the fiscal year ended September 30, 2009, to be filed with the
Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in
agreement with the annual financial audit report for the fiscal year ended September 30, 2009. In
connection with our audit, we determined that these reports were in agreement.

As required by the Rules of the Auditor General Section 10.554(1)(i)(7)c, we applied financial condition
assessment procedures pursuant to Section 10.556(7). It is management’s responsibility to monitor the
County’s financial condition, and our financial condition assessment was based in part on representations
made by management and the review of financial information provided by same.

                                              * * * * * *

This management letter is intended solely for the information and use of the Board of County
Commissioners, management of the County, and the Auditor General of the State of Florida, and is not
intended to be and should not be used by anyone other than these specified parties.

Very truly yours,
Clerk of Circuit Court
             Lee County, Florida


               Financial Statements
                  September 30, 2009




                      Prepared By:
 General Accounting Office, Finance & Records Department
                      Clerk of Circuit Court
                           Lee County, Florida


                              Table of Contents

Independent Auditors’ Report…………………………………………….…....2
Financial Statements:
      Balance Sheet ………………………………………………….…..…..…4
      Statement of Revenues, Expenditures, and Changes
             in Fund Balances …………….………………………….....….…5
      Statement of Revenues, Expenditures, and Changes
             in Fund Balance- Budget and Actual (Budget Basis)-
             General Fund ………………………………………………....….6
      Statement of Revenues, Expenditures, and Changes
             in Fund Balance- Budget and Actual (Budget Basis)-
             Court Fees………………………………………….....…….….…7
       Statement of Revenues, Expenditures, and Changes
             in Fund Balance- Budget and Actual (Budget Basis)-
             Public Records Modernization Fund………..…………………8
      Statement of Fiduciary Net Assets ……………………………….........9
      Statement of Changes in Fiduciary Assets and Liabilities………….10
      Notes to the Financial Statements .……..….………………………….11
Additional Reports:
      Report on Internal Control Over Financial Reporting
             and on Compliance and Other Matters Based on
             an Audit of Financial Statements Performed in
             Accordance with Government Auditing Standards ………..….20
      Management Letter ……………………………....…………………….22




                                      1
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                                          Independent Auditor’s Report


Honorable Charlie Green, Clerk of Circuit Court
Lee County, Florida:

We have audited the accompanying financial statements of each major fund, and the aggregate remaining
fund information of the Lee County, Florida Clerk of Circuit Court, as of and for the year ended
September 30, 2009, as listed in the table of contents. These financial statements are the responsibility of
the Lee County, Florida Clerk of Circuit Court’s management. Our responsibility is to express opinions on
these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Lee County, Florida Clerk of Circuit Court’s internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes 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, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.

As discussed in note I to the financial statements, the accompanying financial statements were prepared for
the purpose of complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the
Auditor General for Local Government Entity Audits. These financial statements are not intended to be a
complete presentation of the financial position of the Lee County, Florida Clerk of Circuit Court as of
September 30, 2009, and the changes in its financial position for the year then ended, in conformity with
U.S. generally accepted accounting principles.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each major fund, and the aggregate remaining fund information of the Lee
County, Florida Clerk of Circuit Court, as of September 30, 2009, and the respective changes in financial
position, and the respective budgetary comparison for the general fund, court fees fund and public records
modernization fund for the year then ended in conformity with U.S. generally accepted accounting
principles.




                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.

                                                              2
In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2010
on our consideration of the Lee County, Florida Clerk of Circuit Court’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.




January 6, 2010
Certified Public Accountants




                                                  3
                                                 Lee County, Florida
                                                  BALANCE SHEET
                                             CLERK OF CIRCUIT COURT
                                               As of September 30, 2009


                                                                                            Public
                                                                                           Records
                                                       General           Court Fees      Modernization   Total
ASSETS
 Cash, cash equivalents, and investments                $1,308,167          $2,211,491      $4,915,808   $8,435,466
 Accounts receivable                                        32,346              29,289           2,955       64,590
 Due from other governments                                131,921               3,437                      135,358
 Due from Board of County Commissioners                     62,029                                           62,029
 Inventory                                                  15,542                                           15,542
Total assets                                             1,550,005           2,244,217       4,918,763    8,712,985




 LIABILITIES AND FUND BALANCES
Liabilities:
   Accounts payable                                        422,208             187,868            783       610,859
   Accrued liabilities                                     224,526             192,053                      416,579
   Due to other governments                                214,816             164,211                      379,027
   Due to Board of County Commissioners                    136,915             395,743                      532,658
   Deposits                                                369,026           1,192,813                    1,561,839
   Unearned revenue                                        133,821                                          133,821
     Total liabilities                                   1,501,312           2,132,688            783     3,634,783
Fund balances:
  Unreserved, undesignated                                  48,693             111,529       4,917,980    5,078,202
     Total fund balances                                    48,693             111,529       4,917,980    5,078,202
Total liabilities and fund balances                     $1,550,005          $2,244,217      $4,918,763   $8,712,985



       The notes to the financial statements are an integral part of this statement.




                                                             4
                                    Lee County, Florida
         STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                                CLERK OF CIRCUIT COURT
                           For the Year Ended September 30, 2009


                                                                                      Public
                                                                                     Records
                                               General            Court Fees       Modernization    Total
REVENUES
  Intergovernmental                              $657,098           $2,978,857                      $3,635,955
  Charges for services                           4,192,786          15,469,606        $1,621,744    21,284,136
  Interest                                           4,970              23,557             1,603        30,130
  Miscellaneous                                    227,072              13,541                         240,613
     Total revenues                              5,081,926          18,485,561         1,623,347    25,190,834

EXPENDITURES
  Current
   General government
    Personal services                           10,657,167          12,691,188         1,359,575    24,707,930
    Operating                                    2,178,117           1,019,574             1,910     3,199,601
 Capital outlay                                     30,531                 624           389,390       420,545
    Total expenditures                          12,865,815          13,711,386         1,750,875    28,328,076
 Excess (deficiency) of revenues
  over (under) expenditures                     (7,783,889)          4,774,175          (127,528)   (3,137,242)

 OTHER FINANCING SOURCES (USES)
  Transfers in                                   7,877,297                                           7,877,297
  Transfers out                                    (44,715)                                            (44,715)
  Surplus to state                                                  (4,662,646)                     (4,662,646)
   Total other financing
     sources (uses)                              7,832,582          (4,662,646)                0     3,169,936
 Net change in fund balances                        48,693             111,529          (127,528)       32,694
 Fund balances - beginning                               0                     0       5,045,508     5,045,508
 Fund balances - ending                            $48,693           $111,529         $4,917,980    $5,078,202



      The notes to the financial statements are an integral part of this statement.




                                                              5
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                   BUDGET AND ACTUAL (BUDGET BASIS)
                          CLERK OF CIRCUIT COURT
                               GENERAL FUND
                     For the Year Ended September 30, 2009




                                                                                              Variance with
                                           Budgeted Amounts                                   Final Budget -
                                                                                 Actual          Positive
                                        Original            Final               Amounts         (Negative)
REVENUES
Intergovernmental                         $756,000           $666,000             $657,098          $(8,902)
Charges for services                     5,248,650          4,154,656            4,192,786           38,130
Interest                                   100,000             14,000               12,072           (1,928)
Miscellaneous                              130,000            232,000              227,072           (4,928)
    Total revenues                       6,234,650          5,066,656            5,089,028          22,372

EXPENDITURES
Current
 General government
  Personal services                     11,109,527         10,739,642           10,657,167           82,475
  Operating                              1,579,162          2,173,780            2,166,748            7,032
Capital outlay                             125,526             30,531               30,531                0
   Total expenditures                   12,814,215         12,943,953           12,854,446           89,507
Excess (deficiency) of revenues
 over (under) expenditures              (6,579,565)        (7,877,297)          (7,765,418)        111,879

OTHER FINANCING SOURCES (USES)
Transfers in                              7,759,997         7,877,297            7,877,297                0
Transfers out                            (1,180,432)                               (44,715)         (44,715)
   Total other financing
   sources (uses)                        6,579,565          7,877,297            7,832,582          (44,715)
Net change in fund balance                         0                 0             67,164            67,164
Fund balance - beginning                           0                 0                   0                0
Fund balance - ending                           $0                  $0            $67,164          $67,164



The notes to the financial statements are an integral part of this statement.




                                                       6
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                   BUDGET AND ACTUAL (BUDGET BASIS)
                          CLERK OF CIRCUIT COURT
                                  COURT FEES
                     For the Year Ended September 30, 2009




                                                                                              Variance with
                                           Budgeted Amounts                                   Final Budget -
                                                                                 Actual          Positive
                                        Original            Final               Amounts         (Negative)
REVENUES
Intergovernmental                                          $2,978,857           $2,978,857
Charges for services                   $21,175,946         18,515,335           15,469,606      $(3,045,729)
Interest                                   100,000            100,000               22,781          (77,219)
Miscellaneous                                8,900              8,900               13,541            4,641
    Total revenues                      21,284,846         21,603,092           18,484,785       (3,118,307)
EXPENDITURES
Current
 General government
  Personal services                     13,601,842         12,690,897           12,691,188             (291)
  Operating                                942,453          1,019,865            1,016,935            2,930
Capital outlay                             117,124                624                  624                0
   Total expenditures                   14,661,419         13,711,386           13,708,747            2,639
Excess of revenues
 over expenditures                       6,623,427          7,891,706            4,776,038       (3,115,668)

OTHER FINANCING SOURCES (USES)
Surplus to state                         (6,623,427)       (7,757,593)          (4,662,646)       3,094,947
    Total other financing
    sources (uses)                      (6,623,427)        (7,757,593)          (4,662,646)       3,094,947

Net change in fund balance                         0         134,113              113,392           (20,721)
Fund balance - beginning                           0                0                     0               0
Fund balance - ending                           $0          $134,113              $113,392         $(20,721)


The notes to the financial statements are an integral part of this statement.




                                                       7
                              Lee County, Florida
   STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                   BUDGET AND ACTUAL (BUDGET BASIS)
                          CLERK OF CIRCUIT COURT
                  PUBLIC RECORDS MODERNIZATION FUND
                     For the Year Ended September 30, 2009




                                                                                             Variance with
                                           Budgeted Amounts                                  Final Budget -
                                                                             Actual             Positive
                                        Original            Final           Amounts            (Negative)
REVENUES
Charges for services                    $2,120,000        $2,120,000         $1,621,744          $(498,256)
Interest                                    65,000            65,000             23,786            (41,214)
    Total revenues                       2,185,000         2,185,000          1,645,530           (539,470)

EXPENDITURES
Current
 General government
  Personal services                      1,767,356         1,767,356             1,359,575         407,781
  Operating                              1,208,116         1,208,116                   387       1,207,729
Capital outlay                             625,000           625,000               389,390         235,610
   Total expenditures                    3,600,472         3,600,472             1,749,352       1,851,120
Excess (deficiency) of revenues
 over (under) expenditures              (1,415,472)        (1,415,472)           (103,822)       1,311,650

Fund balance - beginning                 1,415,472         1,415,472             5,045,508       3,630,036

Fund balance - ending                           $0                  $0       $4,941,686         $4,941,686



 The notes to the financial statements are an integral part of this statement.




                                                      8
                             Lee County, Florida
                    STATEMENT OF FIDUCIARY NET ASSETS
                         CLERK OF CIRCUIT COURT
                           As of September 30, 2009




                                                               Agency Funds

 ASSETS
 Cash, cash equivalents, and investments                            $29,149,962
 Accounts receivable                                                    143,513
 Accrued interest receivable                                                650
 Due from other governments                                              22,110
    Total assets                                                     29,316,235
 LIABILITIES
 Accounts payable                                                        37,962
 Accrued liabilities                                                     15,239
 Due to other governments                                             6,377,286
 Bonds and deposits                                                  22,885,748
   Total liabilities                                                $29,316,235



The notes to the financial statements are an integral part of this statement.




                                           9
                                              Lee County, Florida
                         STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
                                          CLERK OF CIRCUIT COURT
                                     For the Year Ended September 30, 2009


                                                  Beginning                                             Ending
                                                   Balance                Additions      Deletions      Balance
ASSETS
Cash, cash equivalents, and investments             $17,301,097           $374,970,112   $363,121,247   $29,149,962
Accounts receivable                                      43,050                163,875         63,412       143,513
Accrued interest receivable                               9,690                    650          9,690           650
Due from other governments                               11,368                 59,098         48,356        22,110
 Total assets                                        17,365,205            375,193,735    363,242,705    29,316,235



LIABILITIES
Accounts payable                                         50,888            140,949,615    140,962,541        37,962
Accrued liabilities                                      55,118                 79,314        119,193        15,239
Due to other governments                              2,641,090             85,549,673     81,813,477     6,377,286
Bonds and deposits                                   14,618,109            146,098,491    137,830,852    22,885,748
  Total liabilities                                 $17,365,205           $372,677,093   $360,726,063   $29,316,235




The notes to the financial statements are an integral part of this statement.




                                                                   10
                                CLERK OF CIRCUIT COURT
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                    September 30, 2009


NOTE I – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Nature of Activities

L     ee County (the County) was founded in 1887 as a political subdivision of the State of Florida
      established by Article VIII, Section 1(f), Florida Constitution. In 1996, by vote pursuant to Lee
County Ordinance No. 96-01 the County became a charter county as allowed by Article VIII, Section
1(c), Florida Constitution, and Chapter 125.82, Florida Statutes. Pursuant to Article VIII, Section 1(g),
Florida Constitution, as a charter county the County has all powers of self-government not inconsistent
with general law, or with special law approved by vote. It also gives the County authority to enact
ordinances that are not inconsistent with general law.

The County is governed by an elected Board of County Commissioners (the Board), pursuant to Title
XI, Chapters 124-164, Florida Statutes and regulations. In addition to the members of the Board, there
are five elected Constitutional Officers: Clerk of Circuit Court, Property Appraiser, Sheriff, Supervisor
of Elections, and Tax Collector. The Constitutional Officers maintain separate accounting records and
budgets and are each an agency of the County, as a whole.

Included in the financial statements are all departments and/or organizations for which the Clerk of
Circuit Court (the Clerk) has oversight responsibilities which include, but are not limited to, financial
interdependency, ability to significantly influence operations, and accountability for fiscal matters.
The Clerk provides to the citizens of the county the functions of the court clerk, county auditor, county
finance officer, county public/official records keeper, and Clerk to Board of County Commissioners as
mandated by federal, state, and local government statutes and laws.


Reporting Entity

T   he Clerk, as a constitutional officer, is an agency of the County which represents only a portion of
    the County government. As such, the Clerk’s financial activities are included in the Lee County,
Florida Comprehensive Annual Financial Report.

The general operations of the Clerk are funded principally by fees from third parties, and
appropriations from the Board. The appropriations are presented in the Clerk’s financial statements
as transfers in. Pursuant to Section 218.36(2), Florida Statutes, net excess cash from operations in the
General Fund at fiscal year-end are returned to the Board. Excess cash from operations returned to
the Board are reflected as transfers out in the Clerk’s General Fund.

Until June 30, 2009 the court-related operations were funded by the State via charging fees, fines and
service charges and any surplus was returned to the State. Effective July 1, 2009 Senate Bill SB2108
changed Section 28.37(2), Florida Statutes, and thereby changed the funding for the court-related
operations from a County fiscal year (October 1 – September 30) to a State fiscal year (July 1 – June 30).
The new funding for the court-related operations is a monthly appropriation from the State which is
determined by the legislature in the General Appropriations Act. Also effective July 1, 2009 all court-
related fines, fees, and service charges are considered State funds and are remitted to the State’s
Department of Revenue for deposit into the Clerks of the Court Trust Fund within the Justice
Administrative Commission. Any surplus of the appropriation over the expenditures will be
determined at the end of the State’s fiscal year and returned to the state.




                                                   11
                                 CLERK OF CIRCUIT COURT
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009



The financial statements presented include the General Fund, special revenue funds, and agency
funds of the Clerk’s Office. The accompanying financial statements were prepared for the purpose of
complying with Section 218.39, Florida Statutes, and Section 10.557(3), Rules of the Auditor General for
Local Governmental Entity Audits.

Section 10.556(4), Rules of the Auditor General for Local Governmental Entity Audits, requires the Clerk to
only present fund financial statements. Accordingly, due to the omission of government-wide
financial statements and related disclosures, including a management’s discussion and analysis, these
financial statements do not constitute a complete presentation of the financial position of the Clerk as
of September 30, 2009 and the changes in its financial position for the year then ended, in conformity
with Governmental Accounting Standards Board Statements No. 34, Basic Financial Statements- and
Management’s Discussion and Analysis- for State and Local Governments, but otherwise constitute financial
statements prepared in conformity with accounting principles generally accepted in the United States
of America.


Basis of Presentation

T   he financial statements of the Clerk are organized into funds, each of which is considered to be a
    separate accounting entity. Each fund is accounted for by providing a separate set of self-
balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. The
Clerk’s funds are organized into two major categories: governmental and fiduciary. Government
resources are allocated to, and accounted for, in individual funds, based upon the purposes for which
they are to be spent and the means by which spending activities are controlled.


Description of Funds

The following funds are used by the Clerk.

Governmental Funds

General Fund –The Clerk’s activities are classified as court-related and noncourt-related. The Clerk’s
General Fund activity, which is classified as noncourt-related, is funded through service charges for
recording instruments and documents into the official records. Additionally, the Clerk to the Board is
funded through the collection of Ad Valorem taxes by the Lee County Board of County
Commissioners which is reported in the General Fund as transfers in. The General Fund is used to
account for all revenue and expenditures applicable to the general operations of the Clerk, which are
not properly accounted for in another fund. All operating revenue, which is not specifically restricted
or designated as to use, is recorded in the General Fund. Excess net cash from operations at the end of
the year, due back to the Board, are shown as transfers out in the General Fund. Any revenue received
after October 31 and the fair market value (FMV) adjustment to investments, although accrued and
recorded for financial statement purposes, are not included in the excess net cash from operations that
is returned to the Board at year-end and thereby reflected in the fund balance.

Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified purposes. The Clerk currently
reports two Special Revenue Funds- Court Fees and Public Records Modernization (PRM).




                                                    12
                                CLERK OF CIRCUIT COURT
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                    September 30, 2009


Pursuant to Revision 7 to Article V, Florida Constitution, the Court Fees fund accounts for court-related
activities that are funded by the State in the form of an appropriation and are used for maintaining the
County and Circuit Court records. These court fees are restricted and are to be used exclusively for
funding court-related operations and therefore are reported in a special revenue fund. The surplus of
appropriations over expenditures is retained in the fund at year-end and therefore will be reflected in
the fund balance. A surplus as of June 30 is returned to the State.

The Public Records Modernization fund is funded by a portion of recording fees. This fund is
mandated by Section 28.24 (12)(d), Florida Statutes, to be held in trust by the Clerk and used
exclusively for equipment and maintenance of equipment, personnel training, and technical assistance
in modernizing the public records system of the office. Since Revision 7 of Article V, Florida
Constitution, went into effect on July 1, 2004, an additional amount is collected pursuant to Section
28.24(12)(e), Florida Statutes, and is used exclusively for funding court-related technology needs. In
addition, effective July 1, 2009, due to revisions included in Senate Bill SB2108 to Section 28.37(2),
Florida Statutes, 10 percent of all court-related fines collected by the Clerk will be deposited into the
Clerk’s Public Modernization Trust Fund and used exclusively for additional court-related operational
needs and program enhancements.

Fiduciary Funds

Agency Funds – Agency Funds are used to account for assets held by the Clerk in a trustee capacity or
as an agent for individuals, private organizations, and other governments. The Clerk has nine agency
funds which are custodial in nature (assets equal liabilities), and do not involve measurement of
operations or have a measurement focus.


Measurement Focus and Basis of Accounting

M     easurement focus is a term used to describe “which” transactions are recorded within the
      various financial statements. Basis of accounting refers to “when” transactions are recognized
and recorded regardless of the measurement focus applied.

Fund financial statements report detailed information about the Clerk. The focus of governmental
fund financial statements is on major funds rather than reporting funds by type. Each major fund is
reported in a separate column. All of the governmental funds are considered major.

The governmental funds are presented on the modified accrual basis of accounting using the current
financial resources measurement focus. Under the modified accrual basis of accounting, revenues are
recognized when “measurable and available.” The Clerk considers revenues available if they are
collected within thirty days after year-end. Primary revenues, such as charges for services and interest,
are treated as susceptible to accrual under the modified accrual basis and so have been recognized as
revenues. Expenditures are recorded when the related fund liability is incurred, except for certain
compensated absences, which are recognized as expenditures to the extent they have matured. The
agency funds are also presented using the modified accrual basis of accounting.




                                                   13
                                 CLERK OF CIRCUIT COURT
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009


Use of Estimates

T   he preparation of the financial statements requires management of the Clerk of the Circuit Court
    to make a number of estimates and assumptions relating to the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenditures during the period. Actual results could differ
from those estimates.


Budgets and Budgetary Accounting

C    hapter 218, Florida Statutes, governs the preparation, adoption and administration of the Clerk’s
     General Fund annual budget. The Clerk’s budget is prepared on a basis consistent with generally
accepted accounting principals (GAAP). The budget of the Clerk (to the extent of his function as ex-
officio Clerk to the Board and amounts above his fee structure as Clerk to the Circuit and County
Courts), is prepared for the General Fund (noncourt-related activities), which is submitted to and
approved by the Board. The Clerk also prepares a portion of his noncourt-related budget and special
revenue budgets based on anticipated fees.

Pursuant to Section 28.36, Florida Statutes, a balanced court-related budget must be prepared on or
before October 1 and be submitted to the Clerks of Court Operations Corporation (the Corporation).
The corporation shall complete its review and adjustments to the clerks' budget requests and make its
recommendations to the Legislature and the Supreme Court by December 1 each year. Effective July 1,
2009, the Legislature determines the appropriation of the total amount for the budgets of the clerks in
the General Appropriations Act.

The Clerk’s General Fund and special revenue funds budgets are prepared on the modified accrual
basis, except as described in Note II. The annual budget for the General Fund serves as the legal level
of control for the Clerk, and must have Board approval to increase the funding from the Board. Any
increase to the court-related budget must be approved by the Corporation.

The original budget is the first complete appropriated budget. The final budget is the original budget
adjusted by all reserves, transfers, allocations, supplemental appropriations and other legally
authorized changes applicable to the fiscal year, whenever legally authorized.


Cash, Cash Equivalents, and Investments

T   he Clerk considers highly liquid investments with a maturity of three months or less when
    purchased and those included in the internal investment pool, to be cash and cash equivalents.

The Clerk participates in the Florida PRIME (State Board of Administration (SBA)), an external 2a7-
like investment pool, in which the fair value of the Clerk’s position in the pool is the same as the value
of the pool shares. The Clerk also participates in Fund B Surplus Funds Trust Fund, a fluctuating net
asset value (NAV) external investment pool (SBA).




                                                    14
                                CLERK OF CIRCUIT COURT
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                    September 30, 2009


Capital Assets

T   he Clerk’s capital assets include furniture, equipment, computer equipment, vehicles, and
    software. The Clerk, pursuant to Florida Statutes, records no capital assets. Florida Statutes require
that the Board own and maintain accountability for all capital assets for which the Clerk is custodian.
The threshold of capitalizing all capital assets, except software, is $1,000, and $100,000 for software.
Capital assets are recorded at cost, or estimated historical cost. Contributed assets are recorded at
estimated fair value at the time received. Depreciation is calculated using the straight-line method
over the estimated useful lives of the related assets.

In accordance with Governmental Accounting Standards Board Statement No. 34, Basic Financial
Statements – Management’s Discussion and Analysis – for State and Local Governments, depreciation for
governmental fund capital assets is reflected in the government-wide financial statements but is not
reflected in the fund financial statements. Therefore, no depreciation is recorded in the financial
statements of the Clerk but rather is reflected in the financial statements of the County.

In the fund financial statements of the Clerk, capital assets purchased and used in governmental fund
operations are accounted for as capital outlay expenditures of the governmental fund upon
acquisition.


Compensated Absences

T   he Clerk’s employees accumulate sick and annual leave, based on the number of years of
    continuous service. Upon termination of employment, employees can receive payment for all
outstanding accumulated vacation leave and a maximum of 80 hours of accumulated personal leave.
Employees who retire under the Florida Retirement System receive payment for all outstanding
accumulated vacation leave, a maximum of 80 hours of accumulated personal leave, and 50 percent of
accumulated sick leave. The Clerk does not, nor is legally required to accumulate expendable financial
resources for these obligations. Accordingly, the liability for compensated absences is not reported in
the Clerk’s fund financial statements, but rather is reported in the basic financial statements of the
County.


NOTE II – DIFFERENCE BETWEEN BUDGETED AND ACTUAL RESULTS

Budgets are adopted on a basis consistent with GAAP except as follows:

    •   General Fund- Changes in fair market value (FMV) of investments, and prepaid items are not
        budgeted.
    •   Court Fees- Changes in fair market value (FMV) of investments, and prepaid items are not
        budgeted.
    •   Public Records Modernization- Changes in fair market value (FMV) of investments, and prepaid
        items are not budgeted.




                                                   15
                                 CLERK OF CIRCUIT COURT
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009


General Fund:
Excess of revenues and other financing sources over expenditures and other
        financing uses (GAAP basis)                                                          $48,693
Basis Difference:
Fair market adjustment to investments                                                          7,102
Prepaid items                                                                                 11,369
Excess of revenues and other financing sources over expenditures and other
        financing uses (Non-GAAP budgetary basis)                                            $67,164

Court Fee:
Excess of revenues and other financing sources over expenditures and other
        financing uses (GAAP basis)                                                         $111,529
Basis Difference:
Fair market adjustment to investments                                                          ( 776)
Prepaid items                                                                                  2,639
Excess of revenues and other financing sources over expenditures and other
        financing uses (Non-GAAP budgetary basis)                                           $113,392

Public Records Modernization Fund:
Excess of revenues and other financing sources over expenditures and other
        financing uses (GAAP basis)                                                    ($127,528)
Basis Difference:
Fair market adjustment to investments                                                        22,183
Prepaid items                                                                                 1,523
Excess of revenues and other financing sources over expenditures and other
        financing uses (Non-GAAP budgetary basis)                                      ($103,822)


NOTE III – CASH, CASH EQUIVALENTS, AND INVESTMENTS

At September 30, 2009, the Clerk had the following deposits, investments, and maturities:

                                                                        Fair
                Investment                              Maturities      Value                Rating

Cash on Hand                                               N/A           $18,700              N/A
Demand Deposits                                            N/A        23,444,200              N/A
Florida PRIME                                            33 days       9,734,285             AAAm
Fund B Surplus Funds Trust Fund                         6.69 years        75,653             unrated
Federated Government Obligations Money Market Fund         N/A         4,312,590             AAAm
Total Cash, Cash Equivalents and Investments                         $37,585,428

Reconciliation:
         General Fund                                                 $1,308,167
         Court Fees                                                    2,211,491
         Public Records Modernization                                  4,915,808
         Agency Funds                                                 29,149,962
                                                                     $37,585,428




                                                  16
                                 CLERK OF CIRCUIT COURT
                                     Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                     September 30, 2009


Fund B Surplus Funds Trust Fund (Fund B) contains the securities that have problems with payment
defaults, paid slower than expected or have significant credit risk. Interest income is not paid and
distributed to Fund B participants however; periodic liquidity has been made available by transferring
released funds to the Florida PRIME fund. Fund B is accounted for as a fluctuating NAV pool, the fair
value factor as of September 30, 2009 was .54915069.


Custodial Credit Risk

At September 30, 2009, the Clerk of the Circuit Court’s deposits were entirely covered by federal
depository insurance or by collateral pledged with the State Treasurer pursuant to Chapter 280, Florida
Statutes. Under this chapter, in the event of default by a participating financial institution (a qualified
public depository), all participating institutions are obligated to reimburse the governmental entity for
the loss. The total bank and book balances at September 30, 2009, were $35,680,682 and $23,444,200,
respectively. Petty cash and change funds totaled $18,700.


Credit Risk

The Clerk does not have a formal written investment policy and thereby is required to follow Chapter
218.415, Florida Statutes, when investing surplus funds. This statute limits investing of surplus funds
to the Florida PRIME, or any intergovernmental investment pool authorized pursuant to the Florida
Interlocal Cooperation Act of 1969, Securities and Exchange Commission registered money market
funds with the highest credit quality rating from a nationally recognized rating agency, interest-
bearing time deposits or savings accounts in qualified public depositories, or direct obligations of the
U.S. Treasury.


Interest Rate Risk

The Clerk does not have a formal investment policy that limits investment maturities nor is one
contained in Chapter 218.415, Florida Statutes.


Concentration of Credit Risk

The Clerk places no limit on the amount it may invest in any one issuer or investment.


NOTE IV – RETIREMENT PLAN

Plan Description and Provisions

T   he Clerk participates in the Florida Retirement System (FRS), a cost-sharing, multiple-employer,
    public employee retirement system, which covers substantially all of its full time and part time
employees. The FRS is noncontributory and is administered by the State of Florida. Benefits under
the plan vest after six years of service. Employees who retire at or after age 62, with six years of
credited service, are entitled to an annual retirement benefit, payable monthly for life. The FRS also
provides for early retirement at reduced benefits and death and disability benefits. These benefit
provisions and all other requirements are established by Chapters 112 and 121, Florida Statutes. The




                                                    17
                                CLERK OF CIRCUIT COURT
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                    September 30, 2009


FRS offers several other plan and/or investment options that may be elected by the employee. Each
offers specific contribution and benefit options. The FRS plan documents should be referenced for
complete details of these options and benefits.

Pension costs for the Clerk, as required and defined by State Statute, ranged between 9.8 percent and
16.5 percent of gross salaries for the year ended September 30, 2009. For the years ended September
30, 2009, 2008, and 2007, the Clerk contributed 100 percent of the required contributions. These
contributions totaled approximately $1,676,000, $1,683,000, and $1,544,000 respectively, which
represent 10 percent, 10 percent, and 10 percent, respectively, of covered payroll.

The Deferred Retirement Option Program (DROP) is a program that provides an alternative method
for payment of retirement benefits for a specified and limited period for members of the System,
effective July 1, 1998. Under this program, the employee may retire and have their benefits accumulate
in the Florida Retirement System Trust Fund, earning interest, while continuing to work for a system
employer. The participation in the program does not change conditions of employment. When the
DROP period ends, maximum of 60 months, employment must be terminated. At the time of
termination of employment, the employee will receive payment of the accumulated DROP benefits,
and begin receiving their monthly retirement benefit (in the same amount determined at retirement,
plus annual cost-of-living increases).

A copy of the FRS’s June 30, 2009, annual report can be obtained by writing to the Florida Division of
Retirement, PO Box 9000, Tallahassee, Florida 32315-9000, or by calling (850) 488-5706.


Other Post Employment Benefits

T   he Clerk provides post retirement health care benefits in accordance with Chapter 110.123, Florida
    Statutes, to all employees who retire from the Clerk. The Clerk is required to provide group health
care at cost to all retirees and does not pay any portion of the premium for the retiree to participate in
the Plan. In accordance with Governmental Accounting Standards Board Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions,
liabilities and activities related to these benefits are reported in the government-wide financial
statements of the County.


NOTE V – RISK MANAGEMENT


T   he Lee County, Florida, Board of County Commissioners maintains self-insurance internal service
    funds to administer insurance activities relating to certain group medical and dental coverage,
property, general, automobile, public officials liability, workers’ compensation and auto physical
damage. The Clerk participates in the County-wide self-insurance program for all activities. For
liability insurance the Board of County Commissioners pays substantially all of the respective
premiums on behalf of the Clerk and absorbs losses related to these programs up to an aggregate
annual limit. Excess and other specific coverage is purchased from third-party carriers. Charges to
participants are based upon amounts believed by management of the program to meet the required
annual payouts during the fiscal year and to pay for the estimated operating cost of the program.




                                                   18
                                CLERK OF CIRCUIT COURT
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                    September 30, 2009


NOTE VI – LONG-TERM OBLIGATIONS

The following changes in long-term obligations occurred during the year ended September 30, 2009:

        Accrued compensated absences at October 1, 2008                           $1,339,529
        Additions                                                                   1,680,183
        Reductions                                                                 (1,651,529)
        Accrued compensated absences at September 30, 2009                        $1,368,183

Of these liabilities, approximately $147,600 is expected to be paid during the fiscal year ended
September 30, 2010. These long-term liabilities are not reported in the financial statements of the Clerk
since they have not matured.


NOTE VII – LITIGATION


T    he Clerk is involved from time to time in routine civil litigation, the substance of which, would not
     materially affect the financial position of the Clerk. The Clerk is neither currently involved in any
litigation nor aware of any potential legal issues.




                                                   19
                               KPMG LLP
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




              Report on Internal Control Over Financial Reporting and on Compliance
                   and Other Matters Based on an Audit of Financial Statements
                  Performed in Accordance With Government Auditing Standards


Honorable Charlie Green, Clerk of Circuit Court
Lee County, Florida:

We have audited the financial statements of each major fund, and the aggregate remaining fund
information of the Lee County, Florida Clerk of Circuit Court (the Clerk) as of and for the year ended
September 30, 2009, and have issued our report thereon dated January 6, 2010, which was modified to
refer to a basis of accounting required for compliance with state filing requirements. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.

Internal Control over Financial Reporting
In planning and performing our audit, we considered the Clerk’s internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Clerk’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
Clerk’s internal control over financial reporting.

A deficiency in internal control over financial reporting exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented, or
detected and corrected on a timely basis.

Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.




                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.

                                                             20
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Clerk’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.

This report is intended solely for the information and use of the Lee County, Florida Clerk of Circuit Court,
management, the Board of County Commissioners of Lee County, Florida, and the Auditor General of the
State of Florida and is not intended to be and should not be used by anyone other than these specified
parties.




January 6, 2010
Certified Public Accountants




                                                 21
                                KPMG LLP
                                Suite 1700
                                100 North Tampa Street
                                Tampa, FL 33602




                                                   Management Letter


Honorable Charlie Green, Clerk of Circuit Court
Lee County, Florida:

We have audited the financial statements of each major fund, and the aggregate remaining fund
information of the Lee County, Florida Clerk of Circuit Court, as of and for the year ended September 30,
2009, and have issued our report thereon dated January 6, 2010, which was modified to refer to a basis of
accounting required for compliance with state filing requirements.

We conducted our audit in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards issued by the Comptroller General of the United States. We have also issued our report
dated January 6, 2010 on our consideration of the Lee County, Florida Clerk of the Circuit Court’s internal
control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. Disclosures in that report, if any, should be
considered in conjunction with this management letter.

Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the
Auditor General, which govern the conduct of local governmental entity audits performed in the State of
Florida and require that certain items be addressed in this letter.

The Rules of the Auditor General, Section 10.554(1)(i)(1), require that we address in the management
letter, if not already addressed in the auditors’ report on internal control over financial reporting and on
compliance and other matters, whether or not corrective actions have been taken to address findings and
recommendations made in the preceding annual financial audit report. There were no findings or
recommendations made in the preceding annual financial audit.

The Rules of the Auditor General, Section 10.554(1)(i)(2), require that we determine whether or not the
Lee County, Florida Clerk of Circuit Court complied with Section 218.415, Florida Statutes, regarding the
investment of public funds. In connection with our audit, nothing came to our attention that caused us to
believe that the Lee County, Florida Clerk of Circuit Court was not in compliance with Section 218.415,
Florida Statutes.

The Rules of the Auditor General, Section 10.554(1)(i)(3), require that we address in the management
letter, if not already addressed in the auditors’ report on internal control over financial reporting and on
compliance and other matters, any recommendations to improve the Lee County, Florida Clerk of Circuit
Court’s financial management. In connection with our audit, we did not have any such recommendations.

The Rules of the Auditor General, Section 10.554(1)(i)(4), require that we address in the management letter
any violations of provisions of contracts or grant agreements, or abuse that have an effect on the financial
statements that is less than material but more than inconsequential. In connection with our audit, we did not
have any such findings.


                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.

                                                             22
The Rules of the Auditor General, Section 10.554(1)(i)(5), provide for disclosure in the management letter
based on the auditors’ professional judgment of the following matters that have an inconsequential effect
on the financial statements, considering both quantitative and qualitative factors, if not already addressed in
the auditors’ report on internal control over financial reporting and on compliance and other matters:

(1)   Violations of provisions of contracts or grant agreements, fraud, illegal acts, or abuse;
(2)   Control deficiencies that are not significant deficiencies.

The results of our audit disclosed no violations of provisions of contracts or grant agreements, fraud, illegal
acts, or abuse or other control deficiencies that are not significant deficiencies.

The Rules of the Auditor General, Section 10.554(1)(i)(6), also require that the name or official title and
legal authority for the primary government and each component unit of the reporting entity be disclosed in
the management letter, unless disclosed in the notes to the financial statements. In that regard, the Lee
County, Florida Clerk of Circuit Court was established by the Constitution of the State of Florida, Article
VIII, Section 1(d). The Lee County, Florida Clerk of Circuit Court does not have any component units.

As required by the Rules of the Auditor General, Section 10.554(1)(i)(8), the scope of our audit included a
review of the provisions of Section 28.35 and 28.36, Florida Statutes, regarding the budget and
performance standards certified by the Florida Clerk of Courts Operation Corporation. In connection with
our audit, we determined that the Lee County, Florida Clerk of Circuit Court complied with the budget and
performance standards pursuant to Sections 28.35 and 28.36, Florida Statutes.

                                             * * * * * * *

This management letter is intended solely for the information of the Lee County, Florida Clerk of Circuit
Court, management, the Board of County Commissioners of Lee County, Florida, and the Auditor General
of the State of Florida, and is not intended to be and should not be used by anyone other than these
specified parties.




January 6, 2010
Certified Public Accountants




                                                   23
       LEE COUNTY, FLORIDA
       PROPERTY APPRAISER
           Financial Statements
            September 30, 2009
(With Independent Auditors’ Report Thereon)
                                        LEE COUNTY, FLORIDA
                                        PROPERTY APPRAISER


                                             Table of Contents



                                                                                            Page

Independent Auditors’ Report                                                                  1

Financial Statements:

   Balance Sheet – Governmental Funds                                                         3

   Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds     4

   Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
      (Budgetary Basis) – General Fund                                                        5

   Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –
      GIS Fund                                                                                6

Notes to Financial Statements                                                                 7

Report on Internal Control over Financial Reporting and on Compliance and Other Matters
   Based on an Audit of Financial Statements Performed in Accordance with Government
   Auditing Standards                                                                        14

Schedule of Findings and Responses                                                           16

Management Letter                                                                            18
                               KPMG LLP
App
                               Suite 1700
                               100 North Tampa Street
                               Tampa, FL 33602




                                          Independent Auditors’ Report


Honorable Kenneth M. Wilkinson, Property Appraiser
Lee County, Florida:

We have audited the accompanying financial statements of each major fund and the aggregate remaining
fund information of the Lee County, Florida Property Appraiser, as of and for the year ended
September 30, 2009, as listed in the table of contents. These financial statements are the responsibility of
the Lee County, Florida Property Appraiser’s management. Our responsibility is to express opinions on
these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Lee County, Florida Property Appraiser’s internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes 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, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.

As discussed in note 1(a) to the financial statements, the accompanying financial statements were prepared
for the purpose of complying with Section 218.39, Florida Statutes, and Section 10.556(4), Rules of the
Auditor General for Local Governmental Entity Audits. These financial statements are not intended to be a
complete presentation of the financial position of the Lee County, Florida Property Appraiser as of
September 30, 2009, and the changes in its financial position for the year then ended, in conformity with
U.S. generally accepted accounting principles.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of each major fund and the aggregate remaining fund information of the Lee
County, Florida Property Appraiser as of September 30, 2009, and the respective changes in financial
position, and the respective budgetary comparison for the general and GIS funds for the year then ended in
conformity with U.S. generally accepted accounting principles.




                              KPMG LLP, a U.S. limited liability partnership, is the U.S.
                              member firm of KPMG International, a Swiss cooperative.
In accordance with Government Auditing Standards, we have also issued our report dated February 26,
2010 on our consideration of the Lee County, Florida Property Appraiser’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grants agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards and should be considered in
assessing the results of our audit.




February 26, 2010
Certified Public Accountants




                                                  2
                                               LEE COUNTY, FLORIDA
                                               PROPERTY APPRAISER
                                            Balance Sheet – Governmental Funds
                                                   September 30, 2009


                                                                                 Nonmajor
                                               General             GIS            Aerial
                Assets                          Fund               Fund            Fund      Total
Cash                                    $        943,520            189,260         78,579   1,211,359
                Total assets            $        943,520            189,260         78,579   1,211,359
  Liabilities and Fund Balances
Liabilities:
   Accounts payable                     $         36,025                 —             —       36,025
   Accrued liabilities                           199,194             30,002            —      229,196
   Due to other governments                      131,469                 —             —      131,469
   Due to Board of County
      Commissioners                              576,832            159,258            —      736,090
                Total liabilities                943,520            189,260            —     1,132,780
Fund balances                                         —                   —         78,579     78,579
                Total liabilities and
                  fund balances         $        943,520            189,260         78,579   1,211,359


See accompanying notes to financial statements.




                                                           3
                                                             LEE COUNTY, FLORIDA
                                                             PROPERTY APPRAISER
                                               Statement of Revenues, Expenditures, and Changes in
                                                      Fund Balances – Governmental Funds
                                                         Year ended September 30, 2009


                                                                                                       Nonmajor
                                                                     General              GIS           Aerial
                                                                      Fund                Fund           Fund       Total
Revenues:
  Intergovernmental                                            $     1,482,568                   —            —     1,482,568
  Charges for services                                                 301,168                   —         1,981      303,149
  Interest                                                                 933                   —            21          954
  Miscellaneous                                                         77,565                   —            —        77,565
               Total revenues                                        1,862,234                   —         2,002    1,864,236
Expenditures:
  General government:
    Personal services                                                8,267,079           1,329,991           —      9,597,070
    Operating expenditures                                           1,643,168             451,025          901     2,095,094
  Capital outlay                                                       106,915              18,000           —        124,915
               Total expenditures                                   10,017,162           1,799,016          901    11,817,079
               Excess (deficiency) of revenues over
                 (under) expenditures                               (8,154,928)          (1,799,016)       1,101   (9,952,843)
Other financing sources (uses):
  Transfers in:
     Lee County, Florida Board of County
         Commissioners fees and appropriations                       8,863,229           1,958,274           —     10,821,503
  Transfers out:
     Distribution of excess fees and appropriations
         to the Lee County, Florida Board of
         County Commissioners                                         (576,832)           (159,258)          —      (736,090)
     Distribution of excess fees to other taxing districts            (131,469)                 —            —      (131,469)
               Total other financing sources                         8,154,928           1,799,016           —      9,953,944
               Excess of revenues and other financing
                 sources over expenditures and other
                 financing uses                                             —                    —         1,101        1,101
Fund balances – beginning of year                                           —                    —        77,478      77,478
Fund balances – end of year                                    $            —                    —        78,579      78,579


See accompanying notes to financial statements.




                                                                       4
                                                      LEE COUNTY, FLORIDA
                                                      PROPERTY APPRAISER
                                   Statement of Revenues, Expenditures, and Changes in Fund Balance –
                                          Budget and Actual – (Budgetary Basis) – General Fund
                                                     Year ended September 30, 2009


                                                                           Budget                                   Variance with
                                                              Original                Final             Actual       final budget
Revenues:
  Intergovernmental                                     $      1,481,613             1,482,568          1,482,568            —
  Charges for services                                                —                     —              39,796        39,796
  Interest                                                            —                     —                 933           933
  Miscellaneous                                                       —                     —              77,565        77,565
              Total revenues                                   1,481,613             1,482,568          1,600,862       118,294
Expenditures:
  General government:
    Personal services                                          8,661,734             8,514,158          8,267,079       247,079
    Operating expenditures                                     1,497,754             1,604,855          1,381,796       223,059
  Capital outlay                                                 185,354               226,784            106,915       119,869
              Total expenditures                              10,344,842            10,345,797          9,755,790       590,007
              Excess of expenditures over revenues            (8,863,229)           (8,863,229)       (8,154,928)       708,301
Other financing sources (uses):
  Transfers in:
     Lee County, Florida Board of County
         Commissioners fees and appropriations                 8,863,229             8,863,229          8,863,229            —
  Transfers out:
     Distribution of excess fees and
         appropriations to the Lee County, Florida
         Board of County Commissioners                                 —                      —         (576,832)      (576,832)
     Distribution of excess fees to other
         taxing districts                                              —                      —         (131,469)      (131,469)
              Total other financing sources                    8,863,229             8,863,229          8,154,928      (708,301)
              Excess of revenues and other
                financing sources over
                expenditures and other
                financing uses                          $              —                      —               —              —
Fund balance – beginning of year                                                                              —
Fund balance – end of year                                                                        $           —


See accompanying notes to financial statements.




                                                                   5
                                                      LEE COUNTY, FLORIDA
                                                      PROPERTY APPRAISER
                                   Statement of Revenues, Expenditures, and Changes in Fund Balance –
                                                     Budget and Actual – GIS Fund
                                                     Year ended September 30, 2009