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Cover- FY06.pmd - Lee County_ Florida

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					Comprehensive Annual Financial
          Report




            Lee County,
                 Florida



   Fiscal Year Ended September 30, 2006
                    Lee County, Florida


Comprehensive Annual Financial Report
                                For the
                 Fiscal Year Ended September 30, 2006




                          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, 2006



                                                  Elected Officials
Board of County Commissioners, Port Commissioners:

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


        Commissioner, District 2 ………………………………………………Douglas R. St. Cerny


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


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


        Commissioner, District 5 ………………………………………………John E. Albion


                                               Appointed Officials
     County Manager ……………………………………………………………Donald Stilwell


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


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


     Hearing Examiner(s) ……………………………………………………… Diana Parker
                                                                                               Salvatore Territo




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



Photographs provided by Ed Clement Photographic Services, Inc., Rita Miller, 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.




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                                                                                                         Lee County, Florida
                 COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                         September 30, 2006

                                    TABLE OF CONTENTS

                                                                                                   PAGE

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


                                        Financial Section
Independent Auditors' Report ………………………………………………………………………………..……                                     3
Management's Discussion and Analysis (unaudited) ……………………………………………………….…                            5
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- Governmental Funds ………………………………………...……….…………..                        20
            Governmental Funds Statement of Revenues, Expenditures, and
                 Changes in Fund Balances ………………………………………………………………………                               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- Road Impact Fees ……………………            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
    Notes to the Financial Statements ………………………………………………………….…………………                                36

                           Supplemental Financial Information
General Fund Combining Schedules
   Balance Sheet …………………………………………...………………………..………………………………                                         80
   Schedule of Revenues, Expenditures, and Changes in Fund Balances …………………….……………                  82
   Schedule of Revenues, Expenditures, and Changes in Fund Balances-
       Budget (Non-GAAP Budgetary Basis) and Actual……….……………………………….……………                           84
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Lee County, Florida
                                     Lee County, Florida
               COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                     September 30, 2006

                                 TABLE OF CONTENTS

                                                                                          PAGE
                        Supplemental Financial Information (continued)

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 ………………………………..……………………………………                      88
Non-Major Governmental Funds Combining Statements
    Non-Major Governmental Fund Descriptions ……………………………………………...………………                    90
    Balance Sheet …………………………………………………………….………………………………………                                  93
    Statement of Revenues, Expenditures, and Changes in Fund Balances ……………...……………………    101
    Schedule of Revenues, Expenditures, and Changes in Fund Balances-
        Budget (Non-GAAP Budgetary Basis) and Actual- Special Revenue Funds ………………………     109
    Schedule of Revenues, Expenditures, and Changes in Fund Balances-
        Budget (Non-GAAP Budgetary Basis) and Actual- Debt Service Funds ……………………………      116
    Schedule of Revenues, Expenditures, and Changes in Fund Balances-
        Budget (Non-GAAP Budgetary Basis) and Actual- Capital Project Funds …………………………    119
Enterprise Funds Combining Schedule
    Enterprise Fund Descriptions …………………...……………………………………………………………                        122
    Schedule of Revenues, Expenses, and Changes in Net Assets-
        Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP…………………   123
Internal Service Funds Combining Statements
    Internal Service Fund Descriptions …………………………………………………………………….……                      126
    Statement of Net Assets …………………………………………………………………...……………………                          127
    Statement of Revenues, Expenses, and Changes in Fund Net Assets …………….………..……………      128
    Statement of Cash Flows ……………………………………………………….………………………..……                           129
    Schedule of Revenues, Expenses, and Changes in Net Assets-
        Budget (Non-GAAP Budgetary Basis) and Actual with Reconciliation to GAAP…………………   131
Fiduciary Funds Combining Statement
    Fiduciary Fund Descriptions …………………………………………………………………...……………                         136
    Statement of Net Assets………………………..………………………………………………………………                            137
    Statement of Changes in Assets and Liabilities- All Agency Funds………………………………………       140


                                   Statistical Section
                                         (unaudited)
Description ……………………………………………………………………………………………...……………                                   144
   Schedule 1- Net Assets………………..…………………………………………………………………………                             145
   Schedule 2- Changes in Net Assets……………………………………………………………………………                         146
   Schedule 3- Fund Balances of Governmental Funds…………………………………………………………                  148
   Schedule 4- Changes in Fund Balances of Governmental Funds…………………………………………             149
   Schedule 5- Assessed Value and Estimated Actual Value of Taxable Property…………………………    150
   Schedule 6- Property Tax Rates- Direct and Overlapping Governments…………………………………        151
   Schedule 7- Principal Property Taxpayers……………………………………………………………………                     152
   Schedule 8- Property Tax Levies and Collections……………………………………………………………                 153
   Schedule 9- Ratio of Outstanding Debt by Type……………………………………………………………                   154

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                                                                         Lee County, Florida
                                       Lee County, Florida
               COMPREHENSIVE ANNUAL FINANCIAL REPORT
                                       September 30, 2006

                                  TABLE OF CONTENTS

                                                                                                  PAGE
                             Statistical Section (continued)
                                            (unaudited)
 Schedule 10- Pledged Revenue Bond Coverage………………………………………………………………                               155
 Schedule 11- Demographic and Economic Statistics…………………………………………………………                           157
 Schedule 12- Principal Employers………………………………………………………………………………                                   158
 Schedule 13- Government Employees by Function/Program………………………………………………                          159
 Schedule 14- Operating Indicators by Function/Program……………………………………………………                        160
 Schedule 15- Capital Asset Statistics by Function……………………………………………………………                         161


                             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 ………………………………                  164
 Capital Revenue Bonds- Pledged Revenues and Debt Service Coverage…………………………………                   165
 Local Option Gas Tax Refunding Revenue Bonds, Series 1997- Actual Revenues and
     Coverage of Maximum Annual Debt Service Requirements and Number of Gallons………………             166
 Five Cent Local Option Gas Tax Refunding Revenue Bonds, Series 2004- Gas Tax Revenues,
     Debt Service Coverage, and Number of Taxable Gallons Sold……………………….…………………                   166
 Monthly Water Rates ………………………………………………………………..…………………………                                         167
 Water Restriction Surcharge Adjustment ……………………………………………...………………………                             167
 Monthly Wastewater Rates ……………………………………………………………...………………………                                     168
 Water and Wastewater Connection Fees ……………………………………………...………………………                               168
 Water Meter Installation and Service Connection Fees………………………………………………………                        168
 Water and Wastewater Historical Revenues, Expenses and Debt Service Coverage …………………...…         169
 Water and Wastewater Customer Statistics……………………………………………………………………                               170
 Water and Wastewater Top Ten Retail Utility Customers……………………………………………………                        171
 Solid Waste Historic Tipping Fees……………………………………………………….……………………                                  172
 Solid Waste Historic Revenue and Operating Expenses …………………………………………..…………                       172
 Solid Waste Historic Number of Tons of Solid Waste Delivered to the System……………………………            173
 Solid Waste Historical Revenues and Expenses………………………………………………………………                             174
 Solid Waste Notes to Historical Revenues and Expenses for Fiscal Year 2006……………………………            175
 Transportation Facilities Toll Rates ………………………………………………………………..…………                              179
 Transportation Facilities Traffic, Revenues and Expenses by Bridge ………………………………………               182
 Transportation Facilities Revenues, Operating Expenses, and Debt Service Coverage …………………        183
 Port Authority- Airlines Serving the Airport…………………………………………………………………                            184
 Port Authority- Airport Enplanements October 2005 - September 2006……………………………………                 185
 Port Authority- Historical Enplanements by Carrier Type…………………………………………………                       185
 Port Authority- Historical Landed Weight by Airline………………………………………………………                         186
 Port Authority- Historical Enplanements by Airlines………………………………………………………                         186
 Port Authority- Historical Air Service…………………………………………………………………………                               187
 Port Authority- Historical Aircraft Operations………………………………………………………………                           188
 Port Authority- Historical Statement of Net Revenues………………………………………………………                        189
 Port Authority- Passenger Facility Charge Revenue Report, and Estimated Debt Service Coverage…   190

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Lee County, Florida
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vi
                                         Lee County, Florida
              Introductory Section




                                     vii
Lee County, Florida
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viii
                                           Lee County, Florida
December 21, 2006


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, 2006. 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.

The Comprehensive Annual Financial Report is presented in the following four sections:

        Introductory Section - includes a Letter of Transmittal, Government Finance Officers Association
        (GFOA) Certificate of Achievement, and the County's organizational charts. This Letter of
        Transmittal will present a brief overview of the County’s structure and services, a discussion
        assessing the County’s financial condition as well as County awards and acknowledgments
        indicative of the quality of the County’s financial management.

        Financial Section - includes the Independent Auditors’ Report, Management’s Discussion and
        Analysis (MD&A pages 5-14), Basic Financial Statements, Notes, and Combining Statements and
        Schedules. The MD&A provides a narrative introduction, overview, and analysis to accompany
        the Basic Financial Statements, and should be read in conjunction with this Letter of Transmittal.

        Statistical Section – presents additional financial, economic, social, and demographic information
        to provide a more complete understanding of the County and its financial affairs.

        Other Supplemental Schedules – disclosure required by bond covenants.

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.




                                                                                                                 ix
   Lee County, Florida
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 are free of material misstatement for the
fiscal year ended September 30, 2006. 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, 2006, are fairly presented in conformity with GAAP. The Independent Auditors’ Report is
presented in the Financial Section of this report.



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 64 degrees (F) in January
               to 82 degrees (F) in August.

Lee County experienced significant growth between 1990 and 2005 increasing its
population by approximately 64.9 percent to 549,442. According to the U.S. Census, Lee
County is among the 100 fastest growing counties in the nation, and an average of 20,700
people move to Lee County annually. Growth is projected to continue through this
decade, increasing population in the County to over 648,400 by 2010, and in the southwest
Florida area to over 1.2 million. With 24 percent of its residents age 65 and older, the
County is well known as a retirement destination. However, Lee County’s 18-24 year old population
(those available to enter the workforce) is growing about twice as fast as that of Florida and many times
faster than that of the United States.



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,




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                                                                                        Lee County, Florida
Property Appraiser, and Tax Collector. Under the direction of the Clerk of Circuit Court, the Finance
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
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 (noncourt-related budget),
Sheriff, and Supervisor of Elections are approved by the Board. The court-related portion of the Clerk of
Circuit Court’s budget is approved by the State’s Clerks of Court Operations Corporation.



Financial Condition of the County
Local Economy


L   ee County continues to enjoy a very favorable economic environment with
    consistent and steady growth. 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.

Lee County has long been a popular vacation 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.

There was an upturn in the Southwest Florida tourism industry this year. Visitor
volume was up and tourist tax collections, representing short-term rental revenues,
increased from the prior year. Likewise, passenger traffic at Southwest Florida
International Airport (SWFIA) reflected the upward trend in flight travel. In September
2006, a passenger count at SWFIA of 368,245 set a new record for the month and
pushed the fiscal year 2006 total to over 7.5 million, which is a 1.8 percent increase
from the prior fiscal year. Six months in fiscal year 2006 exceeded the passenger count for the same
month in any year during the Airport’s 23-year history. Southwest Florida International Airport has




                                                                                                              xi
Lee County, Florida
 served more than five million passengers each year since 2000. SWFIA consistently ranks among the 60
 busiest airports in the nation.

 According to the Florida Agency for Workforce Innovations, in 2005, the County’s labor force grew to
 266,661, representing a 46 percent increase from 2000. Employment in the Southwest Florida region is
 predicted to grow by 18 percent between 2005 and 2013. Currently, approximately 22 percent of
 employment is concentrated in trade, transportation and utilities, 15 percent in government, 14 percent in
 professional and business services, 12 percent in leisure and hospitality, and 13 percent in construction,
 totaling 76 percent. The annual average unemployment rate in 2005 for Lee County was 2.9 percent
 compared to 3.8 percent for Florida, and 5.1 percent nationally.

 Construction activity in the County has continued to increase due to consistent population growth. In
 2005 new construction permitted for single-family homes in Lee County increased 34 percent to 19,017
 permits valued at $3.4 billion. Multi-family permits increased 17 percent to 1,926 valued at $1.6 billion.

                     Lee County continues to garner numerous favorable rankings nationwide. To name
                     a few: Inc. Magazine ranked Fort Myers/Cape Coral 9th among it’s top 25 medium
                     metropolitan cities for entrepreneurs (2005), Forbes magazine ranked Fort
                     Myers/Cape Coral 2nd among the Top 150 Cities for Job Growth in 2005, U.S.
                     Housing Markets ranked Fort Myers/Cape Coral as the number one housing market
                     in a metropolitan area in the nation for the second year in a row (2004), The Milken
 Institute named Fort Myers/Cape Coral best performing city in the nation for job growth in their 2004
 survey of “Best Performing Cities: Where America’s Jobs are created,” the U.S. Census Bureau has named
 Cape Coral the 5th fastest growing city in the nation (2004), and The Boyd Study, Inc. found Fort
 Myers/Cape Coral 5th among the top 50 locations in the nation to locate a corporate headquarters (2004).



 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 2006 include:

         Acquired a portion of the Babcock Ranch for a purchase price of $41.5 million.
         Acquired the six-story Wachovia Bank Building in downtown Fort Myers. This building will be
         renovated and will be used by County and Constitutional Officers’ departments.
         Constructed the North Lee County Water Treatment Plant. This reverse osmosis treatment
         facility has an initial treatment capacity of 5 million gallons per day (mgd) and will easily be
         expanded to its ultimate capacity of 10 mgd in future years.
         Completed the Corkscrew Water Treatment Plant Expansion & Improvements which increases
         capacity to 15 mgd from the existing 10 mgd.
         Constructed a UF/RO leachate treatment facility at the landfill.
         Expanded the disposal area at the Lee Hendry landfill with the addition of a 25-acre double-lined
         Class 1 landfill cell.
         Widened Alico Road to six lanes from US 41 to Three Oaks Parkway.
         Widened and resurfaced Bonita Beach Road.




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                                                                                             Lee County, Florida
Projects currently in progress include the following:

        Construction and replacement of Spans A, B, and C of the Sanibel Bridge between Punta Rassa
        and Sanibel Island over San Carlos Bay. The replacement of the Sanibel Bridge and Toll Plaza
        will cost approximately $140 million.
        Construction of the addition of a third 600 ton-per-day boiler unit at the Waste-to-Energy facility
        at a projected cost of $123 million, which will increase capacity by 50 percent to 1,836 tons per
        day. This project will be funded with revenue bonds which will be repaid through garbage fees.
        Expansion of Three Oaks Wastewater Treatment Plant to six million gallons per day for
        approximately $22 million.
        Expansion of Gateway Wastewater Treatment Plant for an estimated cost of $30 million.
        Olga Water Treatment Plant Reservoir and plant improvements for approximately $8 million.
        Replacement of the Fort Myers Beach Wastewater Treatment Plant filtration system for
        approximately $9.2 million.
        Expansion of Pinewoods Water Treatment Plant from 2.0 million gallons per day (mgd) to 5.3
        mgd with the addition of reverse osmosis to the plant’s existing nanofiltration treatment process,
        the expansion of the existing wellfield, and the construction of a deep injection well for
        approximately $16 million.
        Expansion of the Corkscrew Water Treatment Plant wellfield by adding 22 additional wells with
        an additional withdraw allocation of 5 mgd for approximately $9 million.
        Expansion of the Justice Center. A multi-story tower will be constructed, the existing Pods will be
        renovated, and the Justice Center Annex Building (Sun Trust Bank Building) will be renovated
        for approximately $120 million.
        Widening of Summerlin Road to six lanes, San Carlos Road to Gladiolus Road, for approximately
        $44 million.
        Three Oaks Parkway Extension, South - four lane arterial extension from East Terry Street to The
        Brooks for $63 million.
        Imperial Street widening to four lanes from Bonita Beach Road to E. Terry Street and construction
        of a bridge across the Imperial River for approximately $25 million.
        Gunnery Road widening to four lanes from SR 82 to Lee Boulevard for approximately $14
        million.
        Three Oaks Parkway widening to four lanes from Corkscrew Road to Alico Road for
        approximately $29 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 the State Board of Administration’s (SBA) Local Government
Surplus Funds Investment Pool Trust Fund. 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.

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 at least 101 or 102 percent with the collateral held in the




                                                                                                               xiii
Lee County, Florida
        County’s name by a third-party safekeeping agent. The collateral is valued weekly and interest
        earned ranged from 3.68 percent to 5.00 percent.

        The Florida State Board of Administration operates an investment pool for local governments.
        The underlying securities and the State General Fund collateralize investments in the pool. The
        average yield for the fiscal year was 4.73 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 one to twenty-four months and
        interest earned ranged from 3.71 to 6.25 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, 2005. This was the twenty-first
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. We believe our
current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements, and we are submitting it to GFOA to determine its eligibility for another
certificate.

The County also received GFOA's Award for Distinguished Budget Presentation for its annual
appropriated budget dated October 1, 2005. To qualify for this award the government's budget
document was judged to be superior in several categories including policy documentation, financial
planning, and organization.




xiv
                                                                                        Lee County, Florida
                      xv
Lee County, Florida
                                                           Lee County Government




            xvi
                                                                   as of September 30, 2006


                                                                       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


                                            Budgeting/                                    Assistant Tax     Chief Deputy
                           Courts                                                                                              Election Support
                                            Personnel      See below                        Collector



                                                                                                             Corrections
                        Finance and                                                                                                Voter
                                           Chief Deputy                                 Customer Service
                          Records                                                                                                Registration

                                                                                                           Law Enforcement

                          Human             IT & Data                                       Human
                                                                                                                                 Operations
                         Resources           Services                                      Resources
                                                                                                               Criminal
                                                                                                            Investigations


                        Internal Audit       Tax Roll                                      Accounting                             Fiscal/HR
                                                                                                            Administration



                                                                                          Management            Budget
                         Information                                                                                              Absentee
                                           Assessment                                     Information
                           Systems                                                                                                Balloting
                                                                                            Systems
                                                                                                             Community
                                                                                                              Outreach
                                                                                           Customer
                                                                                            Support          Facilities &      Public Relations
                                                                                                             Project Dev.


                                                                                                            Internal Affairs



                                                                                                                Legal




Lee County, Florida
                                                                                                                Public
                                                                                                             Information
                                                                         Board of County Commissioners/Port Commissioners
                            Commissioner, District 1     Commissioner, District 2     Commissioner, District 3     Commissioner, District 4                  Commissioner, District 5
                               Robert P. Janes            Douglas R. St. Cerny              Ray Judah                    Tammara Hall                           John E. Albion




Lee County, Florida
                                                                                                                             Port Authority Special
                                             Hearing
                                                                    County Attorney                 County Manager               Management
                                            Examiner
                                                                                                                                  Committee



                                                                                                                                                                           Port Authority
                                                                                                                                                                            Executive
                        Assistant                            Assistant                Visitor and                                                                            Director
                                                                                                      Deputy County    Economic              Public Works
                         County           Smart Growth        County                  Convention
                                                                                                        Manager       Development              Director
                        Manager                              Manager                   Bureau


                       Community                              Animal                                     Human                                                             Administration
                                                                                                                                            Transportation
                      Development                            Services                                  Resources
                                                                                                                                             Department
                      Department                             Division                                  Department


                                                             Budget                                                                         Construction &                    Aviation
                      County Lands                                                                     IT Contract
                                                             Services                                   Manager                                Design
                        Division
                                                                                                                                             Department


                        Human                                 Equal                                     Parks and                                                          Development
                       Services                             Opportunity                                Recreation                               Utilities
                      Department                              Office                                   Department                               Division



                                                              Library                                                                                                          Legal
                      Public Safety                                                                      Fleet                                Solid Waste
                        Division                              Division                                Management                               Division


                                                               Public                                                                          Natural
                         Transit                             Resources                                   Sports
                                                                                                                                              Resources
                       (LeeTran)                              Division                                  Authority
                                                                                                                                               Division


                                                            Purchasing                                                                         Contracts
                                                             Division                                                                           Office



                                                             Veterans
                                                           Service Office




             xvii
xviii
        Lee County, Florida
                      Financial Section




                                          1
Lee County, Florida
    This page is intentionally blank.




2
                                        Lee County, Florida
                                KPMG LLP
                                Suite 1700
                                100 North Tampa Street
                                Tampa, FL 33602




                                           Independent Auditors’ Report


The Board of County Commissioners
   and the Constitutional Officers of
   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, 2006, 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 Lee County, Florida’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, 2006, 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 fund, MSTU fund and road impact fees
fund for the year then ended in conformity with U.S. generally accepted accounting principles.

As discussed in note VIII, the net assets of the governmental activities and fund balances of the road
impact fees fund and other governmental funds as of September 30, 2005 have been restated.

In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2006 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.
                               KPMG LLP, a U.S. limited liability partnership, is the U.S.
                               member firm of KPMG International, a Swiss cooperative.

                                                                                                                  3
Lee County, Florida
    The management’s discussion and analysis on pages 5 through 14 is not a required part of the basic
    financial statements but is 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 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 financial 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.




    December 21, 2006
    Certified Public Accountants




4
                                                                                               Lee County, Florida
                                                  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, 2006. 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 2006 the County’s assets exceeded its liabilities, resulting in total net assets
      of $2,917,717,000. Governmental and business-type assets exceeded its liabilities by $1,789,822,000
      and $1,127,895,000, respectively.
      The County’s total net assets increased $406,830,000, or 16.2 percent, in comparison to prior year.
      The County had $696,160,000 of unrestricted net assets that can be used to meet the County’s ongoing
      obligations.
      Total revenues increased $190,326,000, or 18.4 percent, in comparison to prior year.
      Total expenses increased $127,193,000, or 18.4 percent, in comparison to prior year.
      The County’s governmental activities reported total net assets of $1,789,822,000, which is an increase
      of $297,726,000, or 20.0 percent, in comparison to prior year. Approximately 25.1 percent of the total,
      or $449,732,000, is unreserved, undesignated, and thus available for use at the County’s discretion.
      The County’s business-type activities reported total net assets of $1,127,895,000, which is an increase
      of $109,104,000, or 10.7 percent, in comparison to prior year. Approximately 21.8 percent of the total,
      or $246,428,000, 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.




                                                                                                                 5
Lee County, Florida
                                                  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 Statements
    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, permanent 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, Road Impact Fees, and MSTU
    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), Road Impact Fees, 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 into 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 compensation services on a cost reimbursement basis. Individual fund data is in the combining
    statements as supplemental financial data.

6
                                                                                             Lee County, Florida
                                                 Lee County, Florida

 Fiduciary Fund Financial Statement

 T   he fiduciary fund financial statement (found on page 34) 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 only type of fiduciary funds the County maintains, agency funds, 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 2006 and
 2005.

                                                  Lee County, Florida
                                                Summary of Net Assets
                                              September 30, 2006 and 2005
                                            (amounts expressed in thousands)

                                      Governmental                Business-type
                                        Activities                  Activities                    Total
                                                    2005                                                   2005
                                     2006       (Restated)      2006            2005         2006       (Restated)
 Current and other assets            $967,691      $860,832     $601,941        $569,067   $1,569,632    $1,429,899
 Capital assets                     1,185,813       989,065    1,659,448       1,488,816    2,845,261     2,477,881
  Total assets                      2,153,504     1,849,897    2,261,389       2,057,883    4,414,893     3,907,780

 Other liabilities                    86,271        64,620        91,446          76,321      177,717        140,941
 Non-current liabilities             277,411       293,181     1,042,048         962,771    1,319,459      1,255,952
  Total liabilities                  363,682       357,801     1,133,494       1,039,092    1,497,176      1,396,893

 Net Assets:
 Invested in capital assets, net
  of related debt                     974,518      769,454       733,834      657,657       1,708,352      1,427,111
 Restricted                           365,572      365,127       147,633      132,777         513,205        497,904
 Unrestricted                         449,732      357,515       246,428      228,357         696,160        585,872
   Total net assets                $1,789,822   $1,492,096    $1,127,895   $1,018,791      $2,917,717     $2,510,887

 Note: Certain fiscal year 2005 balances are restated in a manner consistent with the restatement discussed
 in Note VIII on page 75.

 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 used to acquire the
 assets. The invested in capital assets, net of related debt balance of $1,708,352,000 (58.6 percent of total
 net assets) increased $281,241,000, or 19.7 percent, in comparison to prior year.

 The restricted net asset balance of $513,205,000 (17.6 percent of total net assets), increased $15,301,000, or
 3.1 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.

 The unrestricted net asset balance of $696,160,000 (23.9 percent of total net assets), increased $110,288,000
 or 18.8 percent, in comparison to prior year. This balance represents assets that are available for spending
 at the County’s discretion.



                                                                                                                   7
Lee County, Florida
                                                       Lee County, Florida

    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, 2006 and 2005
                                                    (amounts expressed in thousands)

                                              Governmental              Business-type
                                                 Activities              Activities                       Total
                                                         2005                                                        2005
                                            2006     (Restated)       2006        2005             2006           (Restated)
    Revenues:
    Program revenues:
     Charges for services                  $136,967     $122,421      $290,876    $255,916         $427,843         $378,337
     Operating grants and
      contributions                          43,793       45,473         6,310          4,763        50,103           50,236
     Capital grants and
      contributions                          18,680       17,136        59,161      46,128           77,841           63,264
    General revenues:
     Taxes                                  434,773      363,358         3,247          2,708       438,020          366,066
     Impact fees                             68,829       73,773                                     68,829           73,773
     Grant and contributions not
      restricted to specific programs        62,618       44,608                                      62,618           44,608
     Other                                   72,657       46,645        27,613      12,269           100,270           58,914
    Total revenues                          838,317      713,414       387,207     321,784         1,225,524        1,035,198
    Expenses:
    Program activities:
     General government                     159,729      138,114                                    159,729          138,114
     Public safety                          196,834      173,319                                    196,834          173,319
     Physical environment                     22,652       16,126                                    22,652           16,126
     Transportation                           45,018      38,016                                     45,018           38,016
     Economic environment                     21,453       18,904                                    21,453           18,904
     Human services                           20,501       18,890                                    20,501           18,890
     Culture and recreation                   61,342       59,379                                    61,342           59,379
     Interest on long-term debt               11,852       12,763                                    11,852           12,763
     Indirect expenses                       (3,254)      (3,015)        3,254          3,015
    Business-type activities:
     Airport                                                            94,120      53,829           94,120           53,829
     Water and wastewater                                               83,044      70,982           83,044           70,982
     Transit                                                            18,228      16,470           18,228           16,470
     Transportation facilities                                          23,194      22,307           23,194           22,307
     Solid Waste                                                        60,727      52,402           60,727           52,402
     Total expenses                         536,127      472,496       282,567     219,005          818,694          691,501
    Total change in net assets
     before transfers                       302,190      240,918       104,640     102,779          406,830          343,697
    Transfers                                (4,464)      (6,131)        4,464       6,131
    Increase in net assets                  297,726      234,787       109,104     108,910          406,830          343,697

    Net assets October 1, as restated     1,492,096     1,257,309    1,018,791      909,881      2,510,887         2,167,190
    Net assets September 30              $1,789,822    $1,492,096   $1,127,895   $1,018,791     $2,917,717        $2,510,887

    Note: Certain fiscal year 2005 balances are restated in a manner consistent with the restatement discussed
    in Note VIII on page 75.

    Total revenues increased $190,326,000, or 18.4 percent, in comparison to prior year. Total expenses
    increased $127,193,000, or 18.4 percent, in comparison to prior year.




8
                                                                                                   Lee County, Florida
                                                                            Lee County, Florida

 Governmental Activities

 T  he governmental activities increased the County’s total assets, total liabilities, and total net assets by
    $303,607,000, $5,881,000, and $297,726,000, respectively. The increase in total net assets resulting from
 governmental activities is 73.2 percent of the total increase in total net assets. The increase in the
 governmental activities’ invested in capital assets net of related debt is $205,064,000, or 26.7 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 2006.

                                                            Revenues by Source- Governmental Activites
                                                                                                C harge s fo r S e rvic e s
                                                                                                         1 6%

                                              U nre s tric te d G rants                                        Ope ratin g G ran ts
                                                & C o ntributio ns        Othe r                               an d C o ntributio n s
                                                         9%                9%                                           5%
                                                                                                                 C apital G ran ts and
                                              Im pac t Fe e s
                                                                                                                    C o n tributio ns
                                                   8%
                                                                                                                            1%




                                                                                   T axe s
                                                                                    52%




 Total revenues for governmental activities increased $124,903,000 or 17.5 percent, in comparison to prior
 year.

 The following is a chart of revenues by source for governmental activities for fiscal years 2006 and 2005.


                                                                                                                                                 FY06
                                             Revenues by Source- Governmental Activities
                                                                                                                                                 FY05
                                   400,000
          Amounts (in thousands)




                                   350,000
                                   300,000
                                   250,000
                                   200,000
                                   150,000
                                   100,000
                                    50,000
                                        0
                                             Charges for Operating       Capital        Taxes     Impact Fees Unrestricted               Other
                                              Services   Grants and Grants and                                 Grants &
                                                        Contributions Contributions                           Contributions




 Charges for services reported in governmental activities increased $14,546,000, or 11.9 percent, in
 comparison to prior year. The increase is due in part to increased Recording fees pursuant to Article V,
 increased ambulance charges, and special detail charges by the Sheriff. Taxes increased $71,415,000, or
 19.7 percent, in comparison to prior year. The increase is due to the assessed property value increasing
 25.1 percent resulting in higher ad valorem tax revenues. Ad valorem tax revenue in the General Fund,
 Library, MSTU, and Capital Improvement funds increased $36,553,000, $7,794,000, $1,595,000, and
 $13,497,000, respectively. This is an increase of 17.7 percent, 28.3 percent, 5.6 percent, and 27.6 percent,

                                                                                                                                                        9
Lee County, Florida
                                                                           Lee County, Florida

 respectively, in comparison to prior year. Unrestricted Grants and Contributions increased $18,010,000,
 or 40.4 percent, in comparison to prior year, primarily due to an increase in the County’s portion of the
 Local ½ Cent Sales Tax and State Revenue Sharing. Other revenues increased $26,012,000, or 55.8 percent,
 in comparison to prior year due to higher interest rates and consequently higher interest earnings.

 Total expenses for governmental activities increased $63,631,000, or 13.5 percent, in comparison to prior
 year.

 The following is a chart of expenses by program for governmental activities for fiscal years 2006 and 2005.


                                                                                                                                            FY06
                                                 Expenses by Program- Governmental Activities                                               FY05
                                200,000
                                180,000
       Amounts (in thousands)




                                160,000
                                140,000
                                120,000
                                100,000
                                 80,000
                                 60,000
                                 40,000
                                 20,000
                                     0
                                            General Public Saf ety Physical Transportation Economic      Human      Culture & Interest on L/T
                                          Government              Environment             Environment   Services   Recreation      Debt



 General government expenses reported in governmental activities increased $21,615,000, or 15.7 percent,
 in comparison to prior year. The increase is primarily due to increased salaries and wages, and
 maintenance projects. Public safety expenses increased $23,515,000, or 13.6 percent, in comparison to
 prior year due to increased general operating costs.



 Business-Type Activities

 T   he business-type activities increased the County’s total assets, total liabilities, and total net assets by
     $203,506,000, $94,402,000, and $109,104,000, respectively. The overall total increase in net assets
 resulting from business-type activities was 26.8 percent. The increase in the business-type activities’
 invested in capital assets net of related debt is $76,177,000, or 11.6 percent, in comparison to prior year.

 Total revenues reported in business-type activities increased $65,423,000, or 20.3 percent in comparison to
 prior year. Charges for services increased $34,960,000, or 13.7 percent, in comparison to prior year. The
 increase is due to increased revenues associated with the new airport terminal such as landing fees, fuel
 farm fees, gate fees, concessions, and parking fees. Also responsible for the increase are Water and
 Wastewater customer base growth, increased residential rates for garbage collection, and increased
 recycling revenue. Capital grants and contributions increased $13,033,000, or 28.3 percent, in comparison
 to prior year. The increase is due to a runway rehabilitation project at Southwest Florida International
 Airport for which capital grants were received. Other revenues increased $15,344,000, or 125.1 percent, in
 comparison to prior year due to higher interest rates and consequently higher interest earnings.




10
                                                                                                                               Lee County, Florida
                                                                                                  Lee County, Florida

  The following is a chart of revenues by source for business-type activities for fiscal years 2006 and 2005.


                                                                       Revenues by Source- Business-Type Activities
                                                                                                                                                             FY06
                                                             300,000
                                                             280,000
                                                             260,000                                                                                         FY05
                                    Amounts (in thousands)
                                                             240,000
                                                             220,000
                                                             200,000
                                                             180,000
                                                             160,000
                                                             140,000
                                                             120,000
                                                             100,000
                                                              80,000
                                                              60,000
                                                              40,000
                                                              20,000
                                                                   0
                                                                         Charges f or   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 2006 and 2005.


                                                                       Expenses by Program - Business-Type Activities
                                                                                                                                                                    FY06
                                                                                                                                                                    FY05
                                    100,000
           Amounts (in thousands)




                                               80,000

                                               60,000

                                               40,000

                                               20,000

                                                              0
                                                                        Airport     Water & Wastew ater      Transit          Transportation   Solid Waste
                                                                                                                                 Facilities




  Total business-type expenses increased $63,562,000, or 29.0 percent, in comparison to prior year. Port
  Authority increased $40,291,000, or 74.8 percent, in comparison to prior year due to the increased costs
  associated with the new terminal. Water and Wastewater increased $12,062,000, or 17.0 percent, in
  comparison to prior year due to increased employee wages and benefits, and expenses related to repair
  and maintenance projects. Solid Waste expenses increased $8,325,000, or 15.9 percent, in comparison to
  prior year due to additional staffing and an increase in landfill operating costs.


  Financial Analysis of the Government’s Funds
  Governmental Funds


  G    overnmental funds are comprised of the General Fund, special revenue funds, debt service funds,
       capital projects funds, and permanent funds. As noted earlier governmental funds use the current
  financial resources measurement focus that focus 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.

                                                                                                                                                                           11
Lee County, Florida
                                               Lee County, Florida


 General Fund- Taxes increased $36,553,000, or 17.7 percent, in comparison to prior year due to an increase
 in the assessed property value thus increasing the ad valorem tax revenues. In addition franchise fees
 increased $1,924,000, or 27.8 percent, in comparison to prior year due to County growth.

 Lee County Library- Taxes increased $7,794,000, or 28.3 percent, in comparison to prior year, due to an
 increase in the assessed property value thus increasing the ad valorem tax revenues.

 Municipal Service Taxing Unit (MSTU)- Taxes increased $1,595,000, or 5.6 percent, in comparison to prior
 year, due to an increase in the assessed property value thus increasing the ad valorem tax revenues. In
 addition, Communication Services Tax revenue increased $941,000, or 11.0 percent, in comparison to
 prior year due to County growth.

 Capital Improvement- Taxes increased $13,497,000, or 27.6 percent, in comparison to prior year, due to an
 increase in the assessed property value thus increasing the ad valorem tax revenues.

 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.

 Port Authority- Revenues increased in association with the new terminal. User fees and concession
 revenue increased $12,401,000, or 39.4 percent, and $6,488,000, or 22.0 percent, respectively, in
 comparison to prior year. In addition, costs increased in association with the new terminal. Salaries and
 wages, and employee benefits increased $1,928,000, or 13.3 percent, and $1,205,000, or 23.2 percent,
 respectively, in comparison to prior year. Contractual services, material and supplies increased
 $6,207,000, or 50.0 percent, from prior year due to new contracts with parking lot management and
 janitorial services. Utilities increased $2,291,000, or 86.2 percent, from prior year. Repairs and
 maintenance increased $1,033,000, or 86.0 percent, in comparison to prior year due to repairs to the new
 baggage handling system and passenger loading bridges. And finally, depreciation increased $6,351,000,
 or 63.6 percent from prior year, due to capitalizing the new terminal and associated infrastructure which
 was in service for the full year of 2006.

 Water and Wastewater- The Utilities Department operates under an interconnect agreement with the City
 of Fort Myers for the purchase of potable water inventory, therefore when demand is higher contractual
 services, material and supplies expenses are also higher, which increased $3,342,000, or 23.0 percent, from
 prior year. Utility costs also increased $1,758,000, or 34.7 percent, in comparison to prior year.

 Solid Waste – User fees increased $12,828,000, or 24.1 percent, in comparison to prior year, due to an
 increase in growth and increased recycling revenues. However, contractual services increased $7,751,000,
 or 23.8 percent, in comparison to prior year due to increased volume of collection and disposal services.

 General Fund Budgetary and Actual Highlights
 The difference between the original adopted and final amended budget in the General Fund is
 $20,764,000. The significant increases are highlighted as follows:

         $2,050,000 increase for Fisherman’s Cooperative.
         $1,680,000 combined increase for Sheriff and County Hurricane Wilma damage.
         $1,215,000 increase for office space leases.
         $875,000 increase for temporary parking.
         $860,000 increase for Low Income Home Energy Assistance Program.
         $811,000 increase for Hammond Stadium repairs.


12
                                                                                         Lee County, Florida
                                                   Lee County, Florida

  The difference between the General Fund’s final budget and actual results is $83,968,000, which is
  attributed to unfinished projects such as the Gasperilla and Estero Island beach restoration projects,
  roadway landscaping and beautification, and grants that were budgeted but not received this year.

  Capital Assets
  Non-depreciable capital assets include land, construction in progress, and artwork. Depreciable assets
  include buildings, improvements other than buildings, machinery and equipment, and infrastructure.

  The following is a schedule of the County’s capital assets as of September 30, 2006 and 2005:

                                                   Lee County, Florida
                                                      Capital Assets
                                               September 30, 2006 and 2005
                                             (amounts expressed in thousands)

                                 Governmental                  Business-type
                                   Activities                    Activities                       Total
                                             2005                                                           2005
                               2006       (Restated)        2006           2005          2006             (Restated)
 Land                         $318,911      $278,336        $198,728       $197,374      $517,639            $475,710
 Artwork                           303             35                                         303                  35
 Construction in progress      332,991        188,971        336,531        170,794       669,522             359,765
 Buildings                     225,515        207,663        486,208        467,015       711,723             674,678
 Improvement other than
   buildings                    45,577        44,225         263,099        254,335        308,676            298,560
 Machinery & equipment         184,611       167,049         200,865        193,528        385,476            360,577
 Infrastructure                406,621       403,069         622,481        606,226      1,029,102          1,009,295
 Total capital assets        1,514,529     1,289,348       2,107,912      1,889,272      3,622,441          3,178,620
 Accumulated depreciation    (328,716)     (300,283)       (448,464)      (400,456)      (777,180)          (700,739)
 Total                      $1,185,813      $989,065      $1,659,448     $1,488,816     $2,845,261         $2,477,881

  Noteworthy capital asset purchases/projects that took place in fiscal year 2006 were as follows:

          Acquired a six-story Wachovia bank building
          Completed construction of the North Lee County Water Treatment Plant
          Completed expansion of the Corkscrew Water Treatment Plant
          Completed construction of a leachate treatment facility at the landfill
          Completed the widening of Alico Road

  Additional information on the County’s capital assets can be found in Note V on pages 50-52.

  Debt Administration

  A    t September 30, 2006, the County had $1,215,810,000 of outstanding bonded debt. The revenue
       bonds, which are each payable from a specific revenue stream, had an outstanding balance of
  $1,215,810,000, or 100 percent of the total bonded debt. The outstanding bond balance increased
  $32,774,000, or 2.7 percent, in comparison to prior year.

  Total long-term liabilities of $1,319,524,000, which includes bonds payable (net of unamortized
  discounts/premiums and gains/losses), variable debt, notes payable, capital leases, self-insurance claims
  payable, compensated absences, landfill closure and postclosure costs, and arbitrage payable increased
  $63,572,000, or 5.1 percent, in comparison to prior year. The following is a schedule of outstanding bonds
  as of September 30, 2006 and 2005.

                                                                                                                13
Lee County, Florida
                                              Lee County, Florida


                                                 Lee County, Florida
                                                  Outstanding Debt
                                             September 30, 2006 and 2005
                                          (amounts expressed in thousands)

                                  Governmental                      Business-type
                                     Activities                      Activities                 Total
                                              2005                                                      2005
                                2006      (Restated)         2006            2005        2006        (Restated)

Special Assessment Debt                          $475                                                      $475
Revenue Bonds                  $229,165       247,266         $986,645       $935,295   $1,215,810    1,182,561
Total                          $229,165      $247,741         $986,645       $935,295   $1,215,810   $1,183,036

During the year the County refunded the following bonds:

        Airport Revenue Bonds, Series 2000B (maturities from 2032 through 2033). The refunding had a
        net present value savings of $2,417,000 and savings of the refunded bonds is 6.68 percent.
        Solid Waste System Revenue Bonds, Series 1995 (maturities from 2006 through 2015). The
        refunding had a net present value savings of $353,000 and savings of the refunded bonds is 1.62
        percent.

Standard and Poor’s Rating Group suggest that debt service should not exceed 10-15 percent of
appropriations. The fiscal year 2006 debt service was 5.6 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 55-69.

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

        Lee County has generally had a lower unemployment rate compared to the state and nation.
        Utilizing September 2005, as a benchmark, Lee County had a 2.9 percent unemployment rate as
        compared to the State which had a 3.7 percent unemployment rate, and the nation which had a
        4.8 percent unemployment rate, as reported by the U.S. Bureau of Labor Statistics, and Florida
        Agency for Workforce Innovations.
        Salaries and payment for performance were budgeted using an 8.3 percent increase.
        New housing construction growth, which will impact property value totals and increase the ad
        valorem tax revenue, were 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) 335-2300.




14
                                                                                           Lee County, Florida
               Basic Financial Statements




                                            15
Lee County, Florida
                                        Lee County, Florida
                                    STATEMENT OF NET ASSETS
                                      As of September 30, 2006
                                    (amounts expressed in thousands)


                                                                     Primary Government
                                                   Governmental         Business-type
                                                     Activities           Activities               Total
 ASSETS
 Cash and cash equivalents                               $892,068                $251,202         $1,143,270
 Investments                                               17,815                     163             17,978
 Receivables (net)                                         30,782                  35,196             65,978
 Due from other governments                                 8,372                       2              8,374
 Internal balances                                          4,320                  (4,320)                 0
 Inventory                                                  2,688                   1,277              3,965
 Prepaids                                                   1,570                     596              2,166
 Other assets                                               9,724                  11,414             21,138
 Restricted assets                                            352                 306,411            306,763
 Capital assets:
  Non-depreciable                                          652,205                 535,259         1,187,464
  Depreciable, net                                         533,608               1,124,189         1,657,797
    Total assets                                         2,153,504               2,261,389         4,414,893

 LIABILITIES
 Contracts and accounts payable                             36,889                 32,488             69,377
 Accrued liabilities                                         7,590                  1,380              8,970
 Accrued interest payable                                    5,326                                     5,326
 Due to other governments                                    6,389                    713              7,102
 Customer deposits                                          28,662                    571             29,233
 Unearned revenues                                           1,373                    833              2,206
 Refunds and rebates                                                                2,350              2,350
 Liabilities payable from restricted assets                    318                 79,122             79,440
 Noncurrent liabilities:
  Due within one year                                      25,751                      787            26,538
  Due in more than one year                               251,384                1,015,250         1,266,634
    Total liabilities                                     363,682                1,133,494         1,497,176


 NET ASSETS
 Invested in capital assets,
  net of related debt                                     974,518                 733,834          1,708,352
 Restricted for:
  Capital projects                                        346,005                  92,848            438,853
  Debt service                                             19,567                  30,706             50,273
  Renewal and replacement                                                          24,079             24,079
 Unrestricted                                             449,732                 246,428            696,160
     Total net assets                                  $1,789,822            $1,127,895           $2,917,717




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




16
                                                                                             Lee County, Florida
                                                                                                        Lee County, Florida
                                                                                                   STATEMENT OF ACTIVITIES
                                                                                               For the Year Ended September 30, 2006
                                                                                                 (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:




Lee County, Florida
                         General government                      $159,729            $(7,815)          $76,869       $12,931                          $(62,114)                            $(62,114)
                         Public safety                            196,834                909            47,394         4,849           $1,649         (143,851)                            (143,851)
                         Physical environment                      22,652                142             3,309         1,103              232          (18,150)                             (18,150)
                         Transportation                            45,018                916             3,091         8,888           15,738          (18,217)                             (18,217)
                         Economic environment                      21,453                196                          11,572                           (10,077)                             (10,077)
                         Human services                            20,501                250             2,705         2,693             800           (14,553)                             (14,553)
                         Culture and recreation                    61,342              2,148             3,599         1,757             261           (57,873)                             (57,873)
                         Interest on long-term debt                11,852                                                                              (11,852)                             (11,852)
                       Total governmental activities              539,381             (3,254)          136,967        43,793           18,680         (336,687)               0            (336,687)
                       Business-type activities:
                         Airport                                   94,120                412            99,430                         25,359                           $30,257              30,257
                         Water and Wastewater                      83,044              1,364            70,670            1,008        32,698                            19,968              19,968
                         Transit                                   18,228                424             3,074            4,687         1,104                            (9,787)             (9,787)
                         Transportation Facilities                 23,194                585            41,192              615                                          18,028              18,028
                         Solid Waste                               60,727                469            76,510                                                           15,314              15,314
                       Total business-type activities             279,313              3,254           290,876         6,310         59,161                  0           73,780              73,780
                      Total primary government                   $818,694                 $0          $427,843       $50,103        $77,841           (336,687)          73,780            (262,907)
                                                           General revenues:
                                                            Taxes:
                                                              Property taxes                                                                           377,567             3,247            380,814
                                                              Gas taxes                                                                                 20,124                               20,124
                                                              Tourist taxes                                                                             18,728                               18,728
                                                              Other taxes                                                                               18,354                               18,354
                                                            Impact fees                                                                                 68,829                               68,829
                                                            Grant and contributions not restricted to specific programs                                 62,618                               62,618
                                                            Investment earnings                                                                         47,806            21,788             69,594
                                                            Miscellaneous                                                                               24,851             5,825             30,676
                                                           Transfers                                                                                    (4,464)            4,464                  0
                                                           Total general revenues and transfers                                                        634,413            35,324            669,737
                                                           Change in net assets                                                                        297,726           109,104            406,830
                                                           Net assets - beginning, as restated (see Note VIII)                                       1,492,096         1,018,791          2,510,887
                                                           Net assets - ending                                                                      $1,789,822        $1,127,895         $2,917,717




             17
                      The notes to the financial statements are an integral part of this statement.
                                                 Lee County, Florida
                                                  BALANCE SHEET
                                              GOVERNMENTAL FUNDS
                                               As of September 30, 2006
                                            (amounts expressed in thousands)

                                                                                                  Road
                                                                  Lee County                     Impact
                                                 General            Library        MSTU           Fees
ASSETS
Cash and cash equivalents                          $176,129             $59,640     $86,721        $121,464
Cash and cash equivalents
 with fiscal agent
Investments
Receivables (net)
 Accounts                                              7,435                              439
 Special assessments
 Accrued interest                                      2,229                441         594               850
Due from other funds                                   3,284                375         743
Due from other governments                             4,442                          1,489
Inventory                                                186
Prepaids                                                 196                119            48
Advances to other funds                               45,960
 Total assets                                        239,861             60,575      90,034         122,314
LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                        7,516                574           456         5,429
 Accrued liabilities                                   4,562                327           691
 Due to other funds                                    2,657
 Due to other governments                              4,026                140           361
 Deposits and overbids                                21,043                                              275
 Unearned revenues                                       226                282
 Deferred revenues
 Advances from other funds
 Other                                                    43
   Total liabilities                                  40,073               1,323      1,508           5,704
Fund Balances:
 Reserved for:
   Advances                                           45,960
   Inventory                                             186
   Debt service
 Unreserved, designated for:
   Capital and maintenance projects                   42,762             19,001                      60,212
   Unfunded other post employment
      benefits                                        18,000
   Roads revolving loan program                       31,000
   Unfunded mandates                                   2,000
   Economic incentives                                 1,500
   Fort Myers Beach transportation loan                1,000
   Conservation 2020
   Debt service
 Unreserved, undesignated, reported in:
   General fund                                       57,380
   Special revenue funds                                                 40,251      88,526          56,398
   Capital projects funds
   Total fund balances                              199,788              59,252      88,526         116,610
    Total liabilities and fund balances            $239,861             $60,575     $90,034        $122,314
                                                                                                 (continued)

The notes to the financial statements are an integral part of this statement.
   18
                                                                                      Lee County, Florida
                                          Lee County, Florida
                                           BALANCE SHEET
                                       GOVERNMENTAL FUNDS
                                        As of September 30, 2006
                                     (amounts expressed in thousands)

                                                                    Other             Total
                                             Capital             Governmental      Governmental
                                           Improvement              Funds             Funds
 ASSETS
 Cash and cash equivalents                      $145,894                $213,331        $803,179
 Cash and cash equivalents
  with fiscal agent                                                       22,187          22,187
 Investments                                                              17,815          17,815
 Receivables (net)
  Accounts                                            92                     830           8,796
  Special assessments                                                      5,517           5,517
  Accrued interest                                 1,235                   1,982           7,331
 Due from other funds                                690                   7,162          12,254
 Due from other governments                          411                   9,983          16,325
 Inventory                                                                 2,291           2,477
 Prepaids                                                                  1,119           1,482
 Advances to other funds                                                                  45,960
  Total assets                                   148,322                 282,217         943,323
 LIABILITIES AND FUND BALANCES
 Liabilities:
  Contracts and accounts payable                   2,933                  16,956          33,864
  Accrued liabilities                                 62                   1,863           7,505
  Due to other funds                                                       4,616           7,273
  Due to other governments                            32                   1,720           6,279
  Deposits and overbids                                                    7,301          28,619
  Unearned revenues                                                          865           1,373
  Deferred revenues                                                        4,895           4,895
  Advances from other funds                        1,500                  44,460          45,960
  Other                                                                                       43
    Total liabilities                              4,527                  82,676         135,811
 Fund Balances:
  Reserved for:
    Advances                                                                              45,960
    Inventory                                                              2,291           2,477
    Debt service                                                          24,582          24,582
Unreserved, designated for:
    Capital and maintenance projects              87,842                 112,934         322,751
    Unfunded other post employment
       benefits                                                                           18,000
    Roads revolving loan program                                                          31,000
    Unfunded mandates                                                                      2,000
    Economic incentives                                                                    1,500
    Fort Myers Beach transportation loan                                                   1,000
    Conservation 2020                             18,546                                  18,546
    Debt service                                                           4,966           4,966
  Unreserved, undesignated, reported in:
    General fund                                                                          57,380
    Special revenue funds                                                 53,723         238,898
    Capital projects funds                        37,407                   1,045          38,452
    Total fund balances                          143,795                 199,541         807,512
     Total liabilities and fund balances        $148,322                $282,217        $943,323




                                                                                              19
Lee County, Florida
                                               Lee County, Florida
            RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
                                   TO THE STATEMENT OF NET ASSETS
                                             As of September 30, 2006
                                        (amounts expressed in thousands)



 Fund balances - total governmental funds                                                           $807,512

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

     Capital and intangible assets used in governmental activities are not financial
     resources and therefore are not reported in the governmental funds.

      Intangible assets, net                                                            $6,778
      Non-depreciable governmental capital assets                                      651,533
      Depreciable governmental capital assets, net                                     522,666      1,180,977

     Other long-term assets are not available to pay for current period
     expenditures and, therefore, are deferred in the funds.                                            4,895

     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                                                       (226,938)
      Interest payable                                                                   (5,326)
      Accreted interest payable                                                          (6,881)
      Variable debt payable                                                              (1,791)
      Notes payable                                                                      (2,895)
      Arbitrage payable                                                                      (4)
      Capital leases                                                                         (5)
      Compensated absences                                                              (20,495)     (264,335)



     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                                                          60,773

     Net assets of governmental activities                                                         $1,789,822

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




20
                                                                                         Lee County, Florida
                                      Lee County, Florida
            STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                                  GOVERNMENTAL FUNDS
                              For the Year Ended September 30, 2006
                               (amounts expressed in thousands)
                                                                        Lee                         Road
                                                                      County                       Impact
                                                   General            Library         MSTU          Fees
REVENUES
 Taxes                                               $251,656             $35,354      $39,625
 Licenses and permits                                   1,400                           16,161
 Intergovernmental                                     60,198               1,308       15,387
 Charges for services                                  61,928                  92        9,594
 Fines and forfeitures                                    792                 308
 Impact fees                                                                                         $37,931
 Special assessments
 Miscellaneous                                         24,792               3,313        5,542         5,516
    Total revenues                                    400,766              40,375       86,309        43,447
EXPENDITURES
 Current
  General government                                   78,865               2,719       10,949
  Public safety                                       164,336                           14,125
  Physical environment                                  6,763                            9,880
  Transportation                                        2,244                                               60
  Economic environment                                  4,008
  Human services                                       14,588                            3,386
  Culture and recreation                               14,615              24,672       13,819
 Capital outlay
  General government                                    3,686                                290
  Public safety                                         6,811                                697
  Physical environment                                    279
  Transportation                                          345                                         32,318
  Economic environment                                     18
  Human services                                            1                                326
  Culture and recreation                                2,271               1,037            183
 Debt service
  Principal retirement                                       53
  Interest and fiscal charges                                 9
    Total expenditures                                298,892              28,428       53,655        32,378
Excess (deficiencies) of revenues
 over (under) expenditures                            101,874              11,947       32,654        11,069

OTHER FINANCING SOURCES
AND (USES)
 Transfers in                                          28,152                   360        541
 Transfers out                                        (74,731)                         (14,539)         (396)
 Insurance proceeds                                        94
 Debt issuance
  Total other financing sources and (uses)            (46,485)                  360    (13,998)         (396)
Net change in fund balances                            55,389              12,307       18,656        10,673
Fund balances - beginning, as restated (see
Note VIII)                                            144,399              46,945       69,870       105,937
Fund balances - ending                               $199,788             $59,252      $88,526      $116,610

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


                                                                                                       21
   Lee County, Florida
                                   Lee County, Florida
         STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                               GOVERNMENTAL FUNDS
                           For the Year Ended September 30, 2006
                            (amounts expressed in thousands)
                                                                   Other                 Total
                                                  Capital       Governmental          Governmental
                                                Improvement        Funds                 Funds
REVENUES
 Taxes                                               $62,491          $45,656              $434,782
 Licenses and permits                                    423              676                18,660
 Intergovernmental                                     3,047           37,275               117,215
 Charges for services                                     44           21,026                92,684
 Fines and forfeitures                                                    649                 1,749
 Impact fees                                                           30,899                68,830
 Special assessments                                                    2,491                 2,491
 Miscellaneous                                         9,585           25,354                74,102
    Total revenues                                    75,590          164,026               810,513
EXPENDITURES
 Current
  General government                                   2,506           24,080               119,119
  Public safety                                                        11,380               189,841
  Physical environment                                 1,147            4,567                22,357
  Transportation                                                       34,823                37,127
  Economic environment                                                 17,501                21,509
  Human services                                                        2,181                20,155
  Culture and recreation                               4,020              923                58,049
 Capital outlay
  General government                                  72,012           20,919                96,907
  Public safety                                                         1,864                 9,372
  Physical environment                                 2,065              575                 2,919
  Transportation                                       2,222           56,298                91,183
  Economic environment                                                    151                   169
  Human services                                                            3                   330
  Culture and recreation                               1,992           26,331                31,814
 Debt service
  Principal retirement                                                 20,168                20,221
  Interest and fiscal charges                            45            12,083                12,137
   Total expenditures                                 86,009          233,847               733,209
Excess (deficiencies) of revenues
 over (under) expenditures                           (10,419)         (69,821)               77,304
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                         38,570           68,969                136,592
 Transfers out                                       (23,361)         (29,161)              (142,188)
 Insurance proceeds                                                                               94
 Debt issuance                                                          1,365                  1,365
     Total other financing sources and (uses)         15,209           41,173                 (4,137)
Net change in fund balances                            4,790          (28,648)               73,167
Fund balances - beginning, as restated (see
Note VIII)                                           139,005          228,189               734,345
Fund balances - ending                              $143,795         $199,541              $807,512




22
                                                                                 Lee County, Florida
                                               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, 2006
                                         (amounts expressed in thousands)

 Net change in fund balances - total governmental funds:                                                 $73,167

  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 and intangible assets                          $232,696
                    Less current year depreciation and amortization                          (36,286)    196,410
    The net effect of various miscellaneous transactions involving capital and
     intangible assets (i.e., disposals, transfers, donations) is to decrease net assets.                   (202)

    Revenues that were previously reported in the statement of activities and
     are recognized as revenue in the funds.                                                              (1,165)

    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                                                  (1,365)
                    Principal payments                                                        20,221      18,856

    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.
                    Change in arbitrage payable                                                    6
                    Change in compensated absences                                            (2,082)     (2,076)

    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                                                   426
                     Accreted interest on capital appreciation bonds                            (721)
                     Amortization of bond costs                                                 (363)       (658)

    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.                                               13,394

  Change in net assets of governmental activities                                                       $297,726

 The notes to the financial statements are an integral part of this statement.
                                                                                                                    23
Lee County, Florida
                                   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, 2006
                                         (amounts expressed in thousands)

                                                                                             Variance with
                                                 Budgeted Amounts                            Final Budget -
                                                                                 Actual         Positive
                                              Original           Final          Amounts        (Negative)
REVENUES
 Taxes                                         $243,773          $243,773        $251,656           $7,883
 Licenses and permits                               802               802           1,400              598
 Intergovernmental                               73,759            78,321          60,197          (18,124)
 Charges for services                            53,498            56,344          54,437           (1,907)
 Fines and forfeitures                               17                17             792              775
 Miscellaneous                                    9,656            10,961          24,695           13,734
    Total revenues                              381,505           390,218         393,177            2,959
EXPENDITURES
 Current
  General government                            100,995            107,919         78,665           29,254
  Public safety                                 160,276            164,175        157,891            6,284
  Physical environment                           29,995             31,862          6,763           25,099
  Transportation                                 15,135             15,520          2,244           13,276
  Economic environment                            3,820              5,850          4,008            1,842
  Human services                                 15,578             16,118         14,588            1,530
  Culture and recreation                         16,439             18,640         14,615            4,025
 Capital outlay
  General government                               3,302             4,382          3,684              698
  Public safety                                    9,361             8,725          6,811            1,914
  Physical environment                               209               289            279               10
  Transportation                                                       345            345                0
  Economic environment                                22                24             18                6
  Human services                                      20                 1              1                0
  Culture and recreation                             236             2,286          2,265               21
 Debt service
  Principal retirement                                53                 62           53                 9
  Interest and fiscal charges                          2                  9            9                 0
   Total expenditures                           355,443            376,207        292,239           83,968
Excess of revenues
 over expenditures                                26,062            14,011        100,938           86,927
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                    181,662           185,880         29,402         (156,478)
 Transfers out                                  (194,193)         (281,222)      (116,230)         164,992
 Insurance proceeds                                                                    94               94
    Total other financing sources
           and (uses)                            (12,531)          (95,342)       (86,734)           8,608
Net change in fund balance                        13,531           (81,331)        14,204           95,535
Fund balance - beginning                        137,677            137,677        137,700               23
Fund balance - ending                          $151,208            $56,346       $151,904          $95,558

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

24
                                                                                       Lee County, Florida
                             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, 2006
                                    (amounts expressed in thousands)




                                                                                          Variance with
                                           Budgeted Amounts                               Final Budget -
                                                                             Actual          Positive
                                        Original            Final           Amounts         (Negative)
REVENUES
Taxes                                      $34,832           $34,832            $35,354            $522
Intergovernmental                              905             2,101              1,308            (793)
Charges for services                            48                48                 92              44
Fines and forfeitures                          148               148                308             160
Miscellaneous                                  860             1,103              3,278           2,175
    Total revenues                          36,793            38,232             40,340           2,108

EXPENDITURES
Current
 General government                          2,730             2,730              2,719              11
 Culture and recreation                     25,999            27,199             24,672           2,527
Capital outlay
 Culture and recreation                     19,287            19,526              1,038          18,488
   Total expenditures                       48,016            49,455             28,429          21,026
Excess (deficiency) of revenues
 over (under) expenditures                 (11,223)          (11,223)            11,911          23,134

OTHER FINANCING SOURCES
AND (USES)
Transfers in                                                         50            371              321
Transfers out                                                       (50)           (11)              39
  Total other financing sources
   and (uses)                                      0                  0            360              360
Net change in fund balance                 (11,223)          (11,223)            12,271          23,494
Fund balance - beginning                    47,414            47,414             47,084            (330)
Fund balance - ending                      $36,191           $36,191            $59,355         $23,164




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




                                                                                                           25
Lee County, Florida
                                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, 2006
                                    (amounts expressed in thousands)




                                                                                            Variance with
                                           Budgeted Amounts                                 Final Budget -
                                                                             Actual            Positive
                                        Original            Final           Amounts           (Negative)
REVENUES
Taxes                                      $36,090           $36,090            $39,625            $3,535
Licenses and permits                        13,174            13,174             16,161             2,987
Intergovernmental                            5,513            13,060             15,387             2,327
Charges for services                         8,236             8,236              9,595             1,359
Miscellaneous                                2,179             4,679              5,490               811
    Total revenues                          65,192            75,239             86,258            11,019

EXPENDITURES
Current
 General government                         12,642            12,445             10,949             1,496
 Public safety                              14,045            14,725             14,125               600
 Physical environment                          177             9,977              9,880                97
 Human services                              4,994             4,969              3,386             1,583
 Culture and recreation                     14,637            14,844             13,819             1,025
Capital outlay
 General government                            216               320                290                30
 Public safety                                 514             1,091                697               394
 Human services                                412               437                326               111
 Culture and recreation                        154               194                182                12
   Total expenditures                       47,791            59,002             53,654             5,348
Excess of revenues
 over expenditures                          17,401            16,237             32,604            16,367

OTHER FINANCING SOURCES
AND (USES)
Transfers in                                    63               291                541               250
Transfers out                              (19,739)          (19,739)           (14,539)            5,200
   Total other financing sources
   and (uses)                              (19,676)          (19,448)           (13,998)            5,450
Net change in fund balance                  (2,275)            (3,211)           18,606            21,817
Fund balance - beginning                    69,961            69,961             70,155               194
Fund balance - ending                      $67,686           $66,750            $88,761           $22,011



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




26
                                                                                           Lee County, Florida
                                 Lee County, Florida
     STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                BUDGET (Non-GAAP Budgetary Basis) AND ACTUAL
                                ROAD IMPACT FEES
                       For the Year Ended September 30, 2006
                                      (amounts expressed in thousands)




                                                                                               Variance with
                                              Budgeted Amounts                                 Final Budget -
                                                                                   Actual         Positive
                                           Original            Final              Amounts        (Negative)
  REVENUES
  Impact fees                                $24,839            $24,839             $37,930          $13,091
  Miscellaneous                                1,211              1,211               5,430            4,219
     Total revenues                           26,050             26,050              43,360           17,310

  EXPENDITURES
  Current
   Transportation                                                      60               60                 0
  Capital outlay
   Transportation                              88,821            92,530              32,318           60,212
     Total expenditures                        88,821            92,590              32,378           60,212
  Excess (deficiency) of revenues
   over (under) expenditures                  (62,771)          (66,540)             10,982           77,522

  OTHER FINANCING SOURCES
  AND (USES)
  Transfers out                                  (389)             (396)               (396)               0
    Total other financing sources
      and (uses)                                 (389)             (396)               (396)               0
  Net change in fund balance                  (63,160)          (66,936)             10,586           77,522
  Fund balance - beginning, as
  restated (see Note VIII)                   105,938            105,938             102,700           (3,238)

  Fund balance - ending                      $42,778            $39,002            $113,286          $74,284


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




                                                                                                                27
Lee County, Florida
                                                                                                       Lee County, Florida
                                                                                             STATEMENT OF NET ASSETS
                                                                                                   PROPRIETARY FUNDS




            28
                                                                                                   As of September 30, 2006
                                                                                            (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 cash equivalents                         $67,384           $48,417                 $34,701              $7,002              $7,518              $165,022              $66,702
                       Cash and cash equivalents with fiscal agent                                                                      86,180                                    86,180
                       Investments                                             163                                                                                                    163
                       Restricted assets                                      4,485         20,223                  33,455              26,532                                    84,695                    318
                       Receivables (net)                                  13,293             6,644                     423              10,432                1,102               31,894                  1,090
                       Due from other funds                                                                                 5                163                                      168                   473
                       Due from other governments                                2                                                                                                      2                    95
                       Inventories                                             704                94                   479                                                           1,277                  211
                       Other                                                   498                87                        8                  2                    1                 596                    88
                         Total current assets                             86,529            75,465                  69,071             130,311                8,621              369,997               68,977
                      Noncurrent Assets:
                       Restricted assets                                  51,857           104,293                  14,771              50,795                                   221,716                     34
                       Receivables (net)                                                      642                                           2,660                                    3,302
                       Capital assets:
                         Non-depreciable                                 174,417           101,864                 152,174             106,319                    485            535,259                    672
                         Depreciable                                     634,710           562,461                 148,571             204,910              22,001             1,572,653               34,502
                         Less accumulated depreciation                   (126,711)        (180,600)                (53,903)            (73,724)             (13,526)            (448,464)             (23,560)
                       Intangible assets (net)                                1,651                                                                                                  1,651                1,352
                       Unamortized bond costs (net)                           4,718          1,636                   3,226                   183                                     9,763                   12
                         Total noncurrent assets                         740,642           590,296                 264,839             291,143                8,960            1,895,880               13,012
                           Total assets                                  827,171           665,761                 333,910             421,454              17,581             2,265,877               81,989
                      LIABILITIES
                      Current liabilities:
                       Contracts and accounts payable                     13,954             9,946                     596                  7,740                 252             32,488                  3,025
                       Accrued liabilities                                     346            497                      146                    90                  301                1,380                   85
                       Refunds and rebates                                    2,350                                                                                                  2,350
                       Due to other funds                                        6                                         43                                                          49
                       Due to other governments                                235            231                          75                 44                  128                 713                   110
                       Customer deposits                                       559                 1                                          11                                      571
                       Deferred revenues                                       557            276                                                                                     833
                       Self-insurance claims payable                                                                                                                                                      6,143




Lee County, Florida
                       Compensated absences                                    563            102                          21                 18                   34                 738                    21
                       Capital leases - current                                                                                               49                                       49

                                                                                                                                                                                                  (continued)
                                                                                                                     Lee County, Florida
                                                                                                             STATEMENT OF NET ASSETS
                                                                                                                   PROPRIETARY FUNDS
                                                                                                                   As of September 30, 2006
                                                                                                            (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




Lee County, Florida
                      Current liabilities payable from restricted assets:
                       Contracts and accounts payable                                   3,947                4,396                13,060              10,274                                    31,677
                       Accrued liabilities                                                                   4,569                 4,870                  4,550                                 13,989                     42
                       Due to other funds                                                                                          5,573                                                           5,573
                       Due to other governments                                            63                 121                      4                                                             188
                       Customer deposits                                                                     5,397                                                                                 5,397
                       Deferred revenues                                                                      150                  1,710                                                           1,860
                       Notes payable                                                     475                  727                  2,548                                                           3,750
                       Revenue bonds payable - current                                                       4,863                 5,690              11,708                                    22,261                    276
                           Total current liabilities                                 23,055                 31,276                34,336              34,484                    715            123,866                  9,702


                      Noncurrent liabilities:
                       Self - insurance claims payable                                                                                                                                                                  8,851
                       Compensated absences                                              266                  831                    299                   180                  452                2,028                  194
                       Capital leases payable                                                                                                               30                                       30
                       Notes payable                                                    9,295               17,232                32,291                                    3,000               61,818
                       Revenue bonds payable                                        382,614                176,672               192,566             190,730                                   942,582                  1,333
                       Landfill closure and postclosure costs                                                                                             8,189                                    8,189
                       Other                                                             603                                                                                                        603
                           Total noncurrent liabilities                             392,778                194,735               225,156             199,129                3,452            1,015,250               10,378
                             Total liabilities                                      415,833                226,011               259,492             233,613                4,167            1,139,116               20,080


                      NET ASSETS
                       Invested in capital assets, net of related debt              327,225                286,566                29,804              81,278                8,961              733,834               10,015
                       Restricted for:
                         Capital projects                                            15,733                 77,115                                                                              92,848
                         Debt service                                                    712                 9,547                 8,230              12,217                                    30,706                    311
                         Renewal and replacement                                         500                15,385                 6,694                  1,500                                 24,079
                       Unrestricted                                                  67,168                 51,137                29,690              92,846                4,453              245,294               51,583
                             Total net assets                                      $411,338               $439,750               $74,418            $187,841             $13,414             1,126,761              $61,909


                      Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.                                                                     1,134




             29
                      Net assets of business-type activities                                                                                                                                $1,127,895
                      The notes to the financial statements are an integral part of this statement.
                                                                                                        Lee County, Florida




            30
                                                                         STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                                                     PROPRIETARY FUNDS
                                                                                            For the Year Ended September 30, 2006
                                                                                              (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                                          $43,900            $69,604                                       $65,987               $3,074              $182,565               $89,601
                       Tolls                                                                                         $41,058                                                            41,058
                       Rentals and franchise fees                              3,734            135                                          1,463                      11                 5,343
                       Concessions                                         36,002                                                                                                       36,002
                       Miscellaneous                                            228             915                      133                10,855                       1              12,132
                         Total operating revenues                          83,864             70,654                  41,191                78,305                 3,086               277,100               89,601
                       Less: Rebates                                        (2,031)                                                                                                        (2,031)
                         Net operating revenues                            81,833             70,654                  41,191                78,305                 3,086               275,069               89,601

                      OPERATING EXPENSES
                       Salaries and wages                                  16,402             13,210                   4,018                 2,454                 8,226                44,310                2,294
                       Employee benefits                                       6,406           4,802                   1,650                   991                 3,799                17,648                    781
                       Contractual services, materials and supplies        19,218             17,867                   1,864                40,280                 2,915                82,144               17,211
                       Utilities                                               4,951           6,825                     323                 1,750                     200              14,049                3,369
                       Repairs and maintenance                                 2,233           3,617                     518                   515                 1,218                   8,101              2,858
                       Insurance                                               2,134            821                    1,635                    86                     247                 4,923              4,942
                       Insurance claims                                                                                                                                                                      45,512
                       Other                                                   2,615           3,557                     800                 1,253                     661                 8,886                  738
                       Depreciation and amortization                       16,334             21,439                   4,754                 7,147                 1,703                51,377                2,570
                         Total operating expenses                          70,293             72,138                  15,562                54,476               18,969                231,438               80,275
                      Operating income (loss)                              11,540             (1,484)                 25,629                23,829               (15,883)               43,631                9,326


                      NON-OPERATING REVENUES (EXPENSES)
                       Investment earnings                                     5,919           7,911                   2,470                 5,027                     462              21,789                2,998
                       Taxes                                                                                                                 1,783                                         1,783
                       Grants                                                                  2,515                     510                   (89)                4,687                   7,623                  (42)
                       Interest expense                                    (23,127)          (10,165)                  (8,122)              (5,652)                     (1)            (47,067)                (130)
                       Gain (loss) on disposal of capital assets                682           (2,474)                        66                 83                     161                 (1,482)                358
                       Passenger facility charges                          15,567                                                                                                       15,567
                       Other revenues                                          4,172            425                      888                      3                      8                 5,496                  401




Lee County, Florida
                       Other expenses                                            (14)           (191)                    (134)              (1,262)                                        (1,601)                  (1)
                         Total non-operating revenues (expenses)               3,199          (1,979)                  (4,322)                (107)                5,317                   2,108              3,584

                                                                                                                                                                                                        (continued)
                                                                                                                       Lee County, Florida
                                                                                   STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                                                                   PROPRIETARY FUNDS
                                                                                                          For the Year Ended September 30, 2006
                                                                                                            (amounts expressed in thousands)

                                                                                                                          Business-type Activities - Enterprise Funds                                              Governmental




Lee County, Florida
                                                                                                                                                                                                                     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                                                 14,739                  (3,463)                 21,307                23,722               (10,566)              45,739               12,910


                      Capital contributions                                          25,359                 31,192                                                                1,103               57,654
                      Transfers in                                                                                26                                           321              12,068                12,415                1,773
                      Transfers out                                                                             (11)                  (7,938)                                         (2)                (7,951)                (42)
                       Total contributions and transfers                             25,359                 31,207                    (7,938)                  321              13,169                62,118                1,731


                      Change in net assets                                           40,098                 27,744                   13,369                24,043                 2,603              107,857               14,641

                      Total net assets - beginning                                  371,240                412,006                   61,049               163,798               10,811             1,018,904               47,268

                      Total net assets - ending                                    $411,338               $439,750                  $74,418             $187,841               $13,414            $1,126,761              $61,909




                      Change in net assets                                                                                                                                                         $107,857
                      Adjustment to reflect the consolidation of internal service fund activities to related enterprise funds.                                                                           1,247
                      Change in net assets of business-type activities                                                                                                                             $109,104




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




             31
                                                                            Lee County, Florida
                                                                  STATEMENT OF CASH FLOWS
                                                                         PROPRIETARY FUNDS
                                                                  For the Year Ended September 30, 2006
                                                                      (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                     $85,758              $70,614             $42,253          $77,194              $2,957              $278,776               $8,255
   Receipts from interfund services provided                                                                                                                                       81,024
   Cash received from customer deposits                        282                399                                      2                                        683
   Payments to suppliers                                  (27,168)            (25,859)              (4,263)         (39,526)             (4,262)             (101,078)            (72,599)
   Payments to employees                                  (19,932)            (15,242)              (4,767)          (2,860)            (10,030)              (52,831)              (2,660)
   Payments for interfund services used                    (2,856)             (5,251)              (1,270)          (1,337)             (2,899)              (13,613)               (644)
Net cash provided by (used in)
 operating activities                                     36,084               24,661              31,953            33,473             (14,234)              111,937              13,376
CASH FLOWS FROM NONCAPITAL
 FINANCING ACTIVITIES
   Non-capital grants                                                           1,320                 614             1,319              5,022                    8,275                (60)
   Transfers in                                                                                                          316            12,063                 12,379               1,150
   Transfers out                                                                                    (2,365)                                                       (2,365)
   Advances from other funds                                                                                                             (1,000)                  (1,000)
   Excess fees paid to other governments                                                               (89)                                                          (89)
Net cash provided by (used in) noncapital
 financing activities                                             0             1,320               (1,840)           1,635             16,085                 17,200               1,090
CASH FLOWS FROM CAPITAL AND
 RELATED FINANCING ACTIVITIES
   Proceeds from capital debt                             45,426                9,835              15,500          107,411                                    178,172
   Proceeds from special assessments                                              445                                                                               445
   Proceeds from loan repayment                                                                                           80                                         80
   Capital contributions                                  21,444               19,059                                                         695              41,198
   Proceeds from passenger facilities charges             16,084                                                                                               16,084
   Additions to capital assets                            (58,358)            (33,503)            (58,096)          (55,472)              (877)              (206,306)              (6,444)
   Principal paid on bonds, loans, leases,
     and interfund loans                                   (8,085)             (5,801)            (12,373)          (11,987)                                  (38,246)               (295)
   Interest paid on bonds, loans, leases,
     and interfund loans                                  (21,983)             (9,549)            (10,010)           (6,820)                   (1)            (48,363)                 (91)
   Transfer to refunding escrow agent                     (38,682)                                                  (25,184)                                  (63,866)
   Proceeds from sale of capital assets                         74                 48                                     53                  163                   338               542
Net cash provided by (used in) capital
 and related financing activities                         (44,080)            (19,466)            (64,979)            8,081                   (20)           (120,464)              (6,288)
CASH FLOWS FROM INVESTING ACTIVITIES
   Proceeds from sale and maturities of
     investments                                               695                                 35,442                                                      36,137
   Purchase of investments                                 (1,403)                                                  (16,323)                                  (17,726)
   Interest on investments                                  5,842               7,267               4,107             5,825                   409              23,450               2,679
Net cash provided by (used in) investing activities         5,134               7,267              39,549           (10,498)                  409              41,861               2,679
Net increase (decrease) in cash and
 cash equivalents                                          (2,862)             13,782               4,683            32,691              2,240                 50,534              10,857
Cash and equivalents at beginning of year                 97,401              156,650              69,899          121,116               5,278                450,344              56,197
Cash and equivalents at end of year                      $94,539             $170,432             $74,582         $153,807              $7,518              $500,878              $67,054
                                                                                                                                                                              (continued)




      32
                                                                                                                                                Lee County, Florida
                                                                                            Lee County, Florida
                                                                                 STATEMENT OF CASH FLOWS
                                                                                PROPRIETARY FUNDS (continued)
                                                                                 For the Year Ended September 30, 2006
                                                                                      (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                                                       $67,384               $48,417             $34,701          $93,182              $7,518              $251,202              $66,702
   Restricted assets                                                     27,155               122,015              39,881            60,625                                   249,676                 352
Totals                                                                  $94,539              $170,432             $74,582         $153,807              $7,518              $500,878              $67,054


NONCASH INVESTING, CAPITAL,
 AND FINANCING ACTIVITIES
   Contributions of capital assets                                                            $12,144                                                                         $12,144
   Increase (decrease) in fair value of investments                          $74                  112                 $53                 ($9)                                      230               $40




RECONCILIATION OF OPERATING INCOME
 (LOSS) TO NET CASH PROVIDED BY
 (USED IN) OPERATING ACTIVITIES:
Operating income (loss)                                                 $11,540               ($1,484)            $25,629          $23,829             ($15,883)              $43,631              $9,326
Adjustments to reconcile operating income (loss)
 to net cash provided by (used in) operating
 activities:
     Depreciation and amortization                                       16,334                21,439               4,754             7,147               1,703                51,377               2,570
     Other revenues                                                       4,783                   425                 904             1,786                     8                 7,906               419
     Other expenses                                                                              (190)                               (1,256)                                      (1,446)                  (1)
     (Increase) in accounts receivable                                       (628)               (653)                 (12)          (1,641)                  (18)                (2,952)            (263)
     (Increase) in due from other funds                                                                                    (3)                                                        (3)            (419)
     (Increase) in due from other governments                                                                                                                                                          (58)
     (Increase) decrease in inventories                                         37                (94)                 (34)                                                          (91)                18
     (Increase) decrease in other assets                                  1,642                   (87)                     (8)              3                  (1)                1,549                (84)
     Increase in contracts and
         accounts payable                                                 2,242                 4,392                 462                741                  32                  7,869             1,361
     Increase in accrued liabilities                                            46                 74                      16             21                  24                    181                  16
     (Decrease) in refunds and rebates                                       (577)                                                                                                 (577)
     Increase (decrease) in due to other funds                                  (1)                                        42            (106)                                       (65)
     Increase in due to other
         governments                                                         107                   44                       8             13                  14                    186                  78
     Increase in customer deposits                                           281                  399                                       1                                       681
     Increase (decrease) in deferred revenues                                347                  188                 171                                  (118)                    588
     Increase (decrease) in compensated absences                              (69)                208                      24             42                    5                   210                    9
     Increase in other liabilities                                                                                                    2,893                                       2,893               404
Total adjustments                                                        24,544                26,145               6,324             9,644               1,649                68,306               4,050
Net cash provided by (used in) operating
 activities                                                             $36,084               $24,661             $31,953          $33,473             ($14,234)            $111,937              $13,376




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




                                                                                                                                                                                                33
           Lee County, Florida
                        Lee County, Florida
                STATEMENT OF FIDUCIARY NET ASSETS
                        FIDUCIARY FUNDS
                      As of September 30, 2006
                        (amounts expressed in thousands)



                                                              Agency Funds

     ASSETS
     Cash and cash equivalents                                         $73,881
     Receivables (net)
       Accounts receivable                                                  29
       Accrued interest                                                      8
     Due from other governments                                            343
       Total assets                                                     74,261

     LIABILITIES
     Contracts and accounts payable                                      1,502
     Due to individuals                                                  1,180
     Due to other governments                                           45,481
     Bonds and deposits                                                 26,098
       Total liabilities                                               $74,261




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




34
                                                                                 Lee County, Florida
                      Notes to the Financial
                           Statements




                                               35
Lee County, Florida
                                    Lee County, Florida
                          NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006

                                       Table of Contents

Accounts Receivable………………………………… 48                 Interfund Transactions- Advances To/From……… 53
Accounts Receivable- Defined……………………… 41            Interfund Transactions- Transfers In/Out………… 54
Accrual Basis- Full…………………………………… 38                Internal Service Activity……………………………… 38
Accrual Basis- Modified……………………………… 39              Internal Service Fund Description………………… 40
Agency Fund Description…………………………… 40               Inventories- Defined………………………………… 42
Arbitrage Rebate Payable…………………………… 66              Investments- Defined………………………………… 41
Assets, Liabilities, and Net Assets                 Landfill Closure & Postclosure Care Liability……… 73
  or Equity…………………………………………… 41                     Leases- Capital………………………………………… 55
Advances To/From Other Funds…………………… 42             Leases- Operating…………………………………… 55
Basic Financial Statements- Defined………………… 38       Litigation……………………………………………… 74
Blended Component Unit…………………………… 37                Long-term Obligations……………………………… 55
Bond Resolutions for Debt Issues…………………… 60         Long-term Debt- Changes In………………………… 67
Budgeted and Actual Results………………………… 43            Library Fund Description…………………………… 39
Budgets and Budgetary Accounting………………… 40          Measurement Focus, Basis of Accounting,
Budgetary Information……………………………… 40                  and Financial Statement Presentation…………… 38
Business-type Activity……………………………… 39               MSTU Fund Description……………………………… 39
Capital Asset Activity………………………………… 50              Net Assets Defined…………………………………… 43
Capital Assets- Defined……………………………… 42              Non-major Governmental Fund
Capital Assets Lives………………………………… 42                  Description………………………………………… 40
Capital Improvement Fund Description…………… 39        Notes Payable………………………………………… 63
Capitalized Interest…………………………………… 52               Other Information…………………………………… 72
Cash and Cash Equivalents- Defined……………… 41         Other Obligations…………………………………… 65
Cash, Cash Equivalents and Investments……..…… 45     Other Post Employment Benefits…………………… 72
Commitments and Contingencies…………………… 74            Port Authority Fund Description…………………… 40
Compensated Absences- Defined…………………… 42            Prepaid Items- Defined……………………………… 42
Compliance with Finance Related Legal               Prior Period Adjustments…………………………… 75
  and Contractual Provisions……………………… 44            Property Taxes………………………………………… 44
Concentration of Credit Risk………………………… 46           Proprietary Fund Statements- Description………… 39
Construction Commitments………………………… 52               Reporting Entity……………………………………… 37
Credit Risk…………………………………………… 46                     Restricted Assets………………………….…………… 49
Custodial Credit Risk………………………………… 46               Retirement Plan……………………………………… 72
Debt Refundings……………………………………… 60                   Revenue Bonds…………………………………………56
Defeased Bonds……………………………………… 60                    Revenue Bonds- Debt Service Requirements……… 59
Deferred Revenues- Defined………………………… 42             Risk Management…………………………………… 72
Deficit Fund Net Assets……………………………… 44              Road Impact Fees Description……………………… 39
Depreciation Expense………………………………… 52                Segment Information- Port Authority……………… 70
Detail Notes on All Funds…………………………… 45             Self-Insurance Claims Payable……………………… 65
Due From/Due To Defined………………………… 41                Solid Waste Fund Description……………………… 40
Enterprise Fund Description………………………… 40            Stewardship, Compliance, and
Fund Equity- Defined………………………………… 43                  Accountability……………………………………… 44
Fund Organization…………………………………… 38                  Subsequent Events…………………………………… 75
GASB Statement 20…………………………………… 39                  Summary of Significant Accounting Policies……… 37
General Fund Description…………………………… 39              Transportation Facilities Fund Description………… 40
Governmental Fund Financial                         Unamortized Discounts, Premiums,
  Statements- Description…………………………… 39               and Issue Costs- Defined…...……………………… 43
Government-wide and Fund                            Unamortized Gains or Losses- Defined…………… 43
  Financial Statements- Description………………… 37       Unearned Revenues- Defined……………………… 42
Indirect Expenses……………………………………… 38                 Use of Estimates……………………………………… 40
Intangible Assets- Defined…………………………… 42            Variable Debt………………………………………… 61
Interest Rate Risk……………………………………… 46                Water & Wastewater Fund Description…………… 40
Interfund Transactions- Due To/From…………… 53
36
                                                                               Lee County, Florida
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006


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
                                                            T   he Port Authority is a dependent political
                                                                subdivision of the County as defined in Chapter
                                                            189, Florida Statutes. The Port Authority was created
county as allowed by Article VIII, Section 1(c),
Florida Constitution, and Chapter 125.82, Florida           by Chapter 63-1541, Laws of Florida, and by adoption
Statutes. Pursuant to Article VIII, Section 1(g), Florida   of Resolution No. PA-87-8-9. The legal authority by
Constitution, as a charter county the County has all        which the Port Authority operates is found in
powers of self-government not inconsistent with             Chapter 63-1541, Laws of Florida, and Chapters 125
general law, or with special law approved by vote. It       and 332, Florida Statutes. The Port Authority is
also gives the County authority to enact ordinances         included in the County’s reporting entity because of
that are not inconsistent with general law.                 the significance of the operational and financial
                                                            relationships with the County. This component unit
The County is governed by an elected Board of               has substantively the same governing body as the
County Commissioners (the Board), which is                  Board, and is accounted for as a Board enterprise
governed by Title XI, Chapters 124-164, Florida             fund.
Statutes, and regulations. In addition to the members
of the Board, there are five elected Constitutional         The County viewed the Community Redevelopment
Officers: Clerk of Circuit Court, Property Appraiser,       Agency (CRA) as a potential component unit, but it
Sheriff, Supervisor of Elections, and Tax Collector.        was determined that the CRA was part of the
The Constitutional Officers maintain separate               primary government and is combined with the
accounting records and budgets.                             Board’s financial statements. The CRA has the same
                                                            governing Board as the County and is accounted for
The accompanying financial statements present the           as a special revenue fund. The CRA was dissolved
financial position and results of operations of the         on November 28, 2006, by rescinding the resolution
entity as a whole, by major fund, and non-major             that created it.
funds in aggregate, that are governed by the Board
and the Constitutional Officers of Lee County,              Complete financial statements of the Port Authority
Florida.                                                    component unit can be obtained as follows:

                                                            Lee County Port Authority
As required by generally accepted accounting                1100 Terminal Access Road, Suite 8671
principles (GAAP), the financial statements of the          Fort Myers, Florida 33913
reporting entity include those of Lee County (the
primary government) and its component units. A
component unit is a legally separate organization for       Government-Wide and Fund Financial
which the elected officials of the primary                  Statements
government are financially accountable. In addition,
a component unit may be another organization for
which the nature and significance of its relationship
with a primary government is such that exclusion
                                                            T   he government-wide financial statements and
                                                                the major-fund financial statements along with
                                                            the notes to the financial statements comprise the
would cause the reporting entity’s financial                basic financial statements. The government-wide
statements to be misleading or incomplete.                  financial statements (the statement of net assets and




                                                                                                             37
  Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


the statement of activities) concentrate on the          Internal service activity is reported in full on the
County as a whole and do not emphasize fund types        proprietary fund financial statements. The internal
but rather a governmental or a business-type             service funds are combined and thus reported in a
classification, which are presented in separate          single summary column on the proprietary fund
columns. The governmental activities and business-       financial statements. However, the internal service
type activities comprise the primary government.         activity has been eliminated except for the outside
Neither fiduciary funds nor component units that         activity and is combined with the governmental
are fiduciary in nature are included. General            activities on the government-wide financial
governmental and inter-governmental revenues             statements. The outside activities are premiums paid
support the governmental activities, whereas the         from outside entities for insurance, employee’s
business-type activities are primarily supported by      portion of insurance, auto and equipment repair,
user fees and charges for services. The purpose of       participating governments in the radio program for
the government-wide financial statements is to           the government communications network, and
allow the user to be able to determine if the County     employee reimbursements for phone use.
is in a better or worse financial position than the
prior year.                                              Measurement Focus, Basis of
The statement of activities reflects the expenses of a   Accounting, and Financial Statement
given function or program, which are offset by           Presentation
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
                                                         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
reported under general revenue.                          fund are accounted for with a separate set of self-
                                                         balancing accounts that comprise its assets,
The County’s major funds are presented in separate       liabilities, fund equity or retained earnings,
columns on the governmental fund financial               revenues, and expenditures or expenses, as
statements and the proprietary fund financial            appropriate. Government resources are allocated to
statements. The definition of a major fund is one that   and accounted for in individual funds based upon
meets certain criteria set-forth in Governmental         the purpose for which they are to be spent and the
Accounting Standards Board Statements Number 34,         means by which spending activities are controlled.
Basic Financial Statements- and Management’s
Discussion and Analysis- for State and Local             Basis of accounting refers to when revenues and
Governments (GASB 34). The funds that do not meet        expenditures, or expenses, are recognized in the
the criteria of a major fund are considered non-         accounts and reported in the financial statements.
major funds and are combined into a single column        Basis of accounting relates to the timing of the
on the fund financial statements. However, as            measurements made, regardless of the measurement
permitted the County elects to present the Library       focus applied.
and Road Impact Fees as major funds although they
do not meet the criteria.                                The government-wide financial statements are
                                                         prepared on a full accrual basis using the economic
The County allocates indirect expenses and               resources measurement focus, as are the proprietary
therefore reports this allocation in a separate column   fund financial statements. Revenues are recorded
on the government-wide statement of activities.          when earned and expenses are recorded when a
                                                         liability is incurred. Property taxes are recognized in
The effect of interfund activity has been removed        the year for which they are levied. Grants and
from the government-wide financial statements.           similar items are recognized as revenues as soon as
                                                         all of the eligibility requirements have been met.




 38
                                                                                       Lee County, Florida
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006


Fiduciary fund financial statements          are   also    Governmental Entities That Use Proprietary Fund
prepared on an accrual basis.                              Accounting, the County has elected not to apply
                                                           accounting standards issued after November 30,
Proprietary funds record both operating and non-           1989, by the Financial Accounting Standards Board.
operating revenues and expenses. Operating
revenues are those that are obtained from the              When both restricted and unrestricted resources are
operations of the proprietary fund that include user       available, restricted resources will be used first for
fees, tolls, rental and franchise fees, and concessions.   incurred expenses, and then unrestricted as needed.
Non-operating revenues are not related to the              The County reports the following major funds in the
operations of the proprietary fund and include             governmental fund financial statements:
taxes, interest earnings, grants, and passenger
facility charges. Operating expenses represent the         General Fund
cost of operations, which includes depreciation.           The General Fund is the general operating fund of
Non-operating expenses are not related to                  the County that is used to account for all financial
operations such as interest expense.                       resources, except those required to be accounted for
                                                           in another fund.
Governmental fund financial statements are
prepared on the modified accrual basis using the           Lee County Library
current financial resources measurement focus.             The Library is used to account for ad valorem taxes
Under the modified accrual basis, revenues are             and governmental grant funds designated to operate
recognized when they become measurable and                 and maintain the County’s public library system.
available as net current assets. The County considers
all revenues, except revenues from grants, available       MSTU
if they are collected within sixty days after year-end.    The Municipal Service Taxing Unit (MSTU) is used
Grant revenue is recorded as earned and if collected       to account for ad valorem taxes, building license and
within one year after year-end. Primary revenues,          permit fees, State revenue sharing, administration
such as property taxes, special assessments, inter-        fees, charges for Animal Services, and other
governmental revenues, charges for services, sales         revenues, and expenditures to be used in the
and franchise taxes, rents, and interest are treated as    unincorporated areas of the County for services
susceptible to accrual under the modified accrual          rendered.
basis and so have been recognized as revenues.
Expenditures reported in governmental fund                 Road Impact Fees
financial statements are generally recognized under        Road Impact Fees are used to account for revenues
the modified accrual basis of accounting when the          received from impact fees that are restricted to
related fund liability is incurred. An exception to        capital improvements to, and expansion of,
this general rule includes principal and interest on       transportation projects within designated road
general long-term debt, which is recognized when           network areas.
due, and compensated absences which are accrued
when matured.                                              Capital Improvement
                                                           Capital Improvement is used to account for ad
The business-type activities reported in the               valorem taxes and other revenues, and expenditures
government-wide       financial    statements     and      to be used for the acquisition or construction of
proprietary funds follow private sector standards          major non-transportation related capital facilities.
issued prior to December 1, 1989, to the extent those
standards do not conflict with Governmental                The County reports the following major funds in the
Accounting Standards Board statements. However,            proprietary fund financial statements:
pursuant to Government Accounting Standards
Board Statement Number 20, Accounting and
Financial Reporting for Proprietary Funds and Other




                                                                                                            39
 Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


Port Authority                                            Agency Funds
The Lee County Port Authority is used to account          The agency funds are used to account for assets held
for the activities related to the operation of the        by the County as an agent for individuals,
County owned aviation facilities, including               organizations, or other governments, such as impact
Southwest Florida International Airport and Page          fees collected for the Town of Fort Myers Beach and
Field General Aviation Airport.                           the City of Bonita Springs, or license plate tag fees
                                                          collected on behalf of the State of Florida.
Water and Wastewater
The Lee County Water and Wastewater System is             Use of Estimates
used to account for the activities related to the
operation of the County owned water and
wastewater system.                                        T   he preparation of the financial statements
                                                              requires management to make a number of
                                                          estimates and assumptions relating to the reported
Transportation Facilities                                 amounts of assets and liabilities and the disclosure
The Lee County Transportation Facilities is used to       of contingent assets and liabilities at the date of the
account for the activities related to the operation of    financial statements and the reported amounts of
the County owned bridges connecting Sanibel and           revenues and expenditures during the period.
Captiva Islands to the mainland and the Cities of         Actual results could differ from those estimates.
Cape Coral and Fort Myers.

Solid Waste                                               Budgetary Information
The Lee County Solid Waste System is used to
account for the provision of refuse disposal facilities   Budgets and Budgetary Accounting
to the general public.

The County reports the following other fund types:        B   udgets have been adopted by the Board for all
                                                              Board funds except for agency and permanent
                                                          funds. The budgets of the Property Appraiser and
Non-major Governmental Funds                              the Tax Collector are approved by the Florida
The non-major governmental funds are a                    Department of Revenue. The Sheriff and Supervisor
combination of special revenue, debt service, capital     of Elections prepare budgets for their general funds,
projects, and permanent funds.                            which are submitted to and approved by the Board.
                                                          The Clerk of Circuit Court (to the extent of his
Enterprise Funds                                          function as ex-officio Clerk to the Board and
The only non-major enterprise fund is Lee County          amounts above his fee structure as County
Transit. Lee County Transit is used to account for        Recorder) prepares a budget for his general fund
the activities related to the operation of the Lee        (noncourt-related activities), which is submitted to
County Tran bus system, a countywide public               and approved by the Board. The Clerk also prepares
transportation service.                                   a court-related budget which is submitted to and
                                                          approved by the Clerk of Courts Operations
                                                          Corporation. No budget is prepared for the Property
Internal Service Funds
                                                          Appraiser’s special revenue fund, and the Sheriff’s
The internal service funds are used to account for
                                                          special revenue and internal service funds.
data processing, risk management health, dental and
liability self-insurance, radio communications, and
                                                          Capital projects costs are budgeted in the year they
fleet management services on a cost reimbursement
                                                          are anticipated to be obligated. In subsequent years,
basis.
                                                          the unused budget is reappropriated until the
                                                          project is completed. Proprietary funds are budgeted
                                                          on a basis consistent with GAAP, except that capital
                                                          and debt related transactions are based upon cash




 40
                                                                                        Lee County, Florida
                                      Lee County, Florida
                            NOTES TO THE FINANCIAL STATEMENTS
                                      September 30, 2006


receipts and disbursements. Estimated beginning        Investments
fund balances are considered in the budgetary
process. Differences between estimated beginning       The County reports all investments at fair value,
fund balances and actual fund balances, if material,   with the exception of: debt investments held in an
are submitted to the Board as budget amendments.       internal investment pool with a maturity within
The annual budgets serve as the legal authorization    ninety days of purchase, repurchase agreements,
for expenditures. Expenditures cannot legally          Local Government Surplus Funds Investment Pool
exceed the total amount budgeted for each fund.        Trust Fund (State Board of Administration), and the
The Board must approve all budget amendments,          Florida Local Government Investment Trust. All fair
which change the legally adopted total                 valuations are based on quoted market prices. The
appropriation for a fund, or amount of a               investment pool and repurchase agreements are
Constitutional Officers’ draw. Authority to transfer   stated at amortized cost, which approximates fair
budget within a fund is delegated to the County        value. The fair value of the position in the Local
Manager or Budget Director.                            Government Surplus Funds Investment Pool Trust
                                                       Fund, an external 2a7-like investment pool, is the
If, during the fiscal year, additional revenues        same as the value of the pool shares. The Florida
become available for appropriation in excess of        Local Government Investment Trust reports all
those estimated in the budget, the Board may make      share information at Net Asset Value (NAV).
supplemental appropriations by resolution for the
year up to the amount of such excess. During the       Accounts Receivable
fiscal year the Board, in accordance with Florida
Statutes,    approved     various     supplemental     The trade accounts receivable of the County are
appropriations. Appropriations lapse at fiscal year-   recorded in the government-wide, governmental,
end.                                                   and proprietary fund financial statements and are
                                                       net of allowance for doubtful accounts, which
Assets, Liabilities, and Net Assets or                 generally is equivalent to the receivables that are
Equity                                                 over 90 days.

                                                       Special assessment receivables that are not expected
Cash and Cash Equivalents
                                                       to be collected in the current year are reported as
                                                       deferred revenue in the governmental fund
T   he County considers cash and cash equivalents
    to be cash on hand, demand deposits, highly
liquid investments, including those held as
                                                       statements.    Delinquent      special   assessments
                                                       receivable are expected to be recovered, ultimately
                                                       through liens or foreclosures.
restricted assets, with original maturities of three
months or less when purchased, and those included
in the internal investment pool.
                                                       Due From/Due To

                                                       Activity between funds during the year is recorded
For accounting and investment purposes, the
                                                       by transferring cash, however, after September 30
County maintains a cash and investment pool that is
                                                       cash can no longer move between funds; therefore, a
available for use by all funds except those whose
                                                       “due from” and “due to” are used to record any
cash and investments must be segregated due to
                                                       activity representing current interfund loans. Any
legal or other restrictions. Investments within this
                                                       residual balances outstanding between the
pool are treated as a demand deposit account by the
                                                       governmental activities and business-type activities
various funds of the County that participate.
                                                       are reported in the government-wide statement of
Interest earned on investments in the pool is
                                                       net assets as “internal balances”.
allocated to the various funds based upon each
fund’s equity balance in the pool during the
allocation period.




                                                                                                      41
 Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


Inventories and Prepaid items                             Furniture                                     4-20
                                                          Vehicles & rolling stock                      3-10
Inventories, consisting primarily of materials and        Infrastructure                               20-50
supplies, are stated at cost, which approximates fair
market value. The “first-in, first-out” method of         Pursuant to GASB 34, infrastructure was captured
accounting is used to determine cost. All inventories     retrospectively as of 1981.
are recorded as expenditures, or expenses, as they
are used (consumption method).                            Florida Statutes require that the Board maintain
                                                          accountability for all assets used in operations,
Some payments to vendors represent costs                  except those maintained by the Sheriff.
applicable to future accounting periods and are
recorded as prepaid items in government-wide and          Intangible Assets
fund financial statements.
                                                          On December 21, 1995, the Lee County Port
Advances To/From Other Funds                              Authority purchased the assets of Fort Myers Jet
                                                          Center, Inc. for $1.6 million and has classified as
Some funds borrow cash from other funds and               goodwill the excess of cost over the fair market
although these loans are typically paid back by year-     value of assets acquired. The Port Authority is
end, some are long-term and therefore are                 amortizing the goodwill over twenty years.
considered advances.
                                                          Software is classified as an intangible asset and is
Capital Assets                                            amortized over its useful life of three to five years.

Capital assets include property, plant, equipment,        Deferred and Unearned Revenues
and infrastructure assets. Infrastructure assets are
defined as public domain fixed assets such as roads,      Deferred revenues do not meet the availability
bridges, curbs and gutters, streets and sidewalks,        criteria. Unearned revenues represents revenues
drainage systems, lighting systems, and similar           collected in advance of services performed and will
assets that are immovable and of value only to the        be recognized when the services are rendered. In
government unit. Capital assets are reported in the       governmental funds special assessments are
government-wide financial statements in the               deferred until collected.
applicable governmental or business-type activities
column, as well as the proprietary fund financial         Compensated Absences
statements. The threshold for capitalizing property,
plant, and equipment is $1,000. The threshold for         The County maintains a policy that permits
capitalizing infrastructure is $100,000. Capital assets   employees to accumulate earned but unused
are recorded at cost, or estimated historical cost.       vacation and sick pay benefits that will be paid to
Contributed assets are recorded at estimated fair         employees upon separation from County service if
market value at the time received. Depreciation is        certain criteria are met. These benefits, plus their
calculated using the straight-line method over the        related tax and retirement costs are classified as
estimated useful lives of the related assets. The         compensated absences. The County’s policy permits
ranges of the useful lives are as follows:                employees to either bank unused sick pay benefits
                                                          or receive a cash buyout on an annual basis. Both the
Asset                                     Years           current and long-term portion of compensated
                                                          absences are accrued and reported in the
Buildings                                     30-50       government-wide and proprietary fund financial
Improvements other than buildings              6-50       statements. The exception to this policy is the Lee
Equipment                                      3-35       County Port Authority, which has a mandatory
Computer Equipment                             3-10




42
                                                                                       Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


annual buyback of unused leave. This is accounted        or not available for expenditure. Reserved for
for pursuant to GASB Statement Number 16,                inventory represents materials and supplies held for
Accounting for Compensated Absences.                     future use. Reserved for debt service is used to
                                                         segregate resources accumulated for debt service,
Unamortized Discounts, Premiums, and Issue               either current or future. Designations of fund
                                                         balance represent tentative management plans.
Costs
                                                         Unreserved, undesignated fund balance indicates
                                                         funds that are available for current expenditure.
Discounts, premiums, and issue costs related to
long-term debt are amortized over the life of the
debt principally by the effective-interest method.       NOTE II.   DIFFERENCE BETWEEN
Notes payable, general obligation bonds payable,         BUDGETED AND ACTUAL RESULTS
and revenue bonds payable in the government-wide
and proprietary fund financial statements are shown
net of unamortized discounts and premiums. Debt
issuance costs are presented as assets in the
                                                         B  udgets are adopted on a basis consistent with
                                                            GAAP except as follows:

government-wide Statement of Net Assets.                         General Fund – EMS ambulance fees, bad
Discounts, premiums, and issue costs related to                  debts for Emergency Medical Services,
general long-term debt in the governmental fund                  changes in fair market value (FMV) of
financial statements are recorded as expenditures                investments, advances to other funds, and
when paid and therefore are not accounted for in                 an inventory adjustment are not budgeted.
subsequent periods.                                              Library – Changes in fair market value
                                                                 (FMV) of investments are not budgeted.
Unamortized Gains or Losses                                      MSTU – Changes in fair market value
                                                                 (FMV) of investments are not budgeted.
Gains or losses from debt refundings are reported in             Road Impact Fees- Changes in fair market
the accompanying financial statements as an                      value (FMV) of investments are not
addition or deduction to bonds payable and will be               budgeted.
charged to operations using the effective-interest
method by amortizing the gain or loss over the           The following adjustments were necessary to
shorter of the life of the old bond or the life of the   present these funds’ actual data on a budgetary
new bond, which is reported in the government-           basis (Non-GAAP) for the fiscal year ended
wide and proprietary fund financial statements.          September 30, 2006 (dollars in thousands):

Net Assets                                               General Fund:
                                                         Excess of revenues and other financing
In the government-wide and proprietary fund               sources over expenditures and other financing
financial statements certain net assets have been         uses (GAAP basis)                          $55,389
identified as restricted. These net assets have          Basis Difference:
constraints as to their use externally imposed by        EMS ambulance fees not reported on
creditors, through debt covenants, by grantors, or by        a cash basis                             (7,272)
law. Restricted assets are being reported for: capital   Miscellaneous revenue not budgeted
projects; debt service; and renewal and replacement.         (FMV)                                       (90)
                                                         Advances budgeted as transfers              (40,250)
                                                         Expenditures associated with inventory          (18)
Fund Equity                                              Bad debts for Public Safety, not
                                                           budgeted                                    6,445
In the governmental fund financial statements a          Excess of revenues and other financing
reservation of fund balance indicates amounts that        sources over expenditures and other financing
are limited for a specific purpose, not appropriable,     uses (Non-GAAP budgetary basis)           $14,204




                                                                                                        43
 Lee County, Florida
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006


Library:                                                   provided by Florida Statutes. The enforceable lien
Excess of revenues and other financing sources             date is approximately two years after taxes become
 over expenditures and other financing uses                delinquent and occurs only upon request of a holder
 (GAAP basis)                               $12,307        of a delinquent tax certificate. There were no
Basis Difference:                                          significant delinquent property tax receivables at
Miscellaneous revenue not budgeted-                        September 30, 2006.
    Change in FMV                               (36)
Excess of revenues and other financing                     Important dates in the property tax cycle are as
 sources over expenditures and other financing             follows:
 uses (Non-GAAP budgetary basis)            $12,271
                                                                   Assessment roll certified- July 1
MSTU:                                                              Millage resolution approved- no later than
Excess of revenues and other financing                             95 days following receipt of the certified
 sources over expenditures and other                               preliminary assessment roll
 financing uses (GAAP basis)                $18,656                Beginning of fiscal year for which taxes have
Basis Difference:                                                  been levied- October 1
Miscellaneous revenue not budgeted-                                Taxes due and payable (levy date)-
    Change in FMV                               (50)               November 1
Excess of revenues and other financing                             Property taxes payable (maximum discount
 sources over expenditures and other financing                     of 4 percent)- 30 days after levy date
 uses (Non-GAAP budgetary basis)            $18,606                Due date- March 31
                                                                   Taxes become delinquent (lien date)- April 1
Road Impact Fees:                                                  Tax certificate sold- prior to June 1
Deficiency of revenues and other financing
 sources under expenditures and other
 financing uses (GAAP basis)               $10,673
Basis Difference:                                          NOTE IV. STEWARDSHIP,
Miscellaneous revenue not budgeted-                        COMPLIANCE, AND ACCOUNTABILITY
    Change in FMV                              (87)
Excess of revenues and other financing                     Compliance with Finance Related Legal
 sources over expenditures and other financing
 uses (Non-GAAP budgetary basis)           $10,586         and Contractual Provisions

NOTE III. PROPERTY TAXES
                                                           M     anagement believes there were no violations
                                                                 of finance related legal and contractual
                                                           provisions.
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       Deficit Fund Net Assets
taxes are allowed for payments made prior to the
April 1 delinquent date. Tax certificates for the full     At September 30, 2006, The Municipal Service
amount of any unpaid taxes must be sold no later           Benefit    Unit     Districts   Fund      (non-major
than June 1 of each year. No accrual for the property      governmental fund) had a deficit fund balance of
tax levy becoming due in November 2006, is                 $3,999,000 due to the purchase of their portion of the
included in the accompanying financial statements,         Fisherman’s Cooperative. This purchase was
since such taxes are collected to finance                  financed through a loan from the General Fund. The
expenditures of the subsequent period.                     benefactors will be assessed for repayment of the
                                                           loan.
Procedures for collecting delinquent taxes, including
applicable tax certificate sales and tax deed sales, are




 44
                                                                                         Lee County, Florida
                                              Lee County, Florida
                                    NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2006

NOTE V. DETAIL NOTES ON ALL FUNDS
Cash, Cash Equivalents and Investments
As of September 30, 2006, 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                $1,127                                   N/A
Cash with Fiscal Agent                                N/A                43,863                                   N/A
Demand Deposits                                       N/A               110,522                                   N/A
Certificate of Deposit                             1/18/2007             10,000                                   N/A
State Board of Administration
   Investment Pool                                  32 days             744,465                                  Unrated
Florida Local Government Investment Trust          2.58 years              2,000                                  AAA
First American Treasury Money Market                  N/A                      784                                AAA
Evergreen Institutional Treasury Money Market         N/A                      140                                AAA
Bank of America Securities Treasury Money Market      N/A                  3,814                                  AAA
U.S. Treasury Bill                                 10/26/2006                  708                                N/A
U.S. Treasury Note                                 2/15/2007             10,042                                   N/A
U.S. Treasury Note                                 3/31/2008             16,336                                   N/A
Federal Farm Credit                                3/5/2008              20,019      3/5/2007       One-time      AAA
Federal Home Loan Bank                             10/26/2006            19,987                                   AAA
Federal Home Loan Bank                             11/28/2006            19,975      11/28/2006     Quarterly     AAA
Federal Home Loan Bank                             12/14/2006            19,975                                   AAA
Federal Home Loan Bank                             9/28/2007             19,981      12/28/2006     One-time      AAA
Federal Home Loan Bank                             10/10/2007            19,981      10/10/2006     Quarterly     AAA
Federal Home Loan Bank                             11/8/2007             20,006      11/8/2006      Quarterly     AAA
Federal Home Loan Bank                             11/23/2007              9,975     10/23/2006     Monthly       AAA
Federal Home Loan Bank                             1/17/2008             20,031      1/17/2007      One-time      AAA
Federal Home Loan Bank                             1/28/2008             19,944      10/28/2006     Quarterly     AAA
Federal Home Loan Bank                             1/28/2008             19,944      10/28/2006     Quarterly     AAA
Federal Home Loan Bank                             4/18/2008             19,987      10/18/2006     Quarterly     AAA
Federal Home Loan Bank                             7/17/2008             10,016      1/17/2007      One-time      AAA
Federal Home Loan Mortgage Corporation             3/7/2007              19,958      11/10/2006     Quarterly     AAA
Federal Home Loan Mortgage Corporation             3/30/2007             19,958      12/8/2006      Quarterly     AAA
Federal Home Loan Mortgage Corporation             12/28/2007            10,005      12/28/2006     Quarterly     AAA
Federal Home Loan Mortgage Corporation             1/28/2008             24,324      10/28/2006     Quarterly     AAA
Federal Home Loan Mortgage Corporation             3/7/2008              19,951      12/7/2006      Quarterly     AAA
Federal Home Loan Mortgage Corporation             5/15/2008             20,012      5/15/2007      One-time      AAA
FHLMC Discount Note                                12/29/2006            19,752                                   AAA
Federal National Mortgage Association              3/7/2007                    162   12/7/2006      Quarterly     AAA
Federal National Mortgage Association              3/7/2007              26,013      12/7/2006      Quarterly     AAA
Federal National Mortgage Association              9/21/2007             19,975      12/21/2006     Quarterly     AAA
Federal National Mortgage Association              12/13/2007            29,925      1/21/2006      Quarterly     AAA
Federal National Mortgage Association              1/18/2008             19,937      10/18/2006     Quarterly     AAA
Federal National Mortgage Association              2/22/2008             16,963      11/22/2006     Quarterly     AAA
Federal National Mortgage Association              4/28/2008             20,006      10/28/2006     Quarterly     AAA
Federal National Mortgage Association              4/28/2008             20,006      10/28/2006     Quarterly     AAA
Federal National Mortgage Association              5/15/2008             19,988                    Continuous     AAA
Federal National Mortgage Association              9/29/2008             19,994      12/29/2006     Quarterly     AAA
FNMA Discount Note                                 2/28/2007               6,854                                  AAA
FNMA Discount Note                                 11/17/2007             17,829                                  AAA
                         Total                                        $1,535,234




                                                                                                                       45
Lee County, Florida
                                          Lee County, Florida
                                NOTES TO THE FINANCIAL STATEMENTS
                                          September 30, 2006


Credit Risk                                                  that the obligations of any state or municipality be
                                                             rated by at least one of the nationally recognized
The Board’s Investment Policy (Policy) limits credit         rating agencies in any one of the two (2) highest
risk by restricting authorized investments to the            classifications, and that investments in money
following: Direct obligations of, or obligations the         market mutual funds must be rated in the highest
principal and interest of which are unconditionally          category by a nationally recognized rating service.
guaranteed by the United States Government; U.S.             The SBA is an investment pool not rated by a
Government            sponsored           Corporation/       nationally recognized statistical rating agency. The
Instrumentalities; U.S. Government Agencies; The             amounts invested in SBA are available for
Florida Local Government Surplus Funds Trust                 immediate withdraw. All credit ratings indicated in
Fund (SBA); Interest-bearing time deposits or                the above table are Standard & Poor’s (S&P) ratings.
savings accounts in banks organized under the laws
of Florida, in national banks organized under the            Custodial Credit Risk
laws of the United States and doing business and
situated in Florida; Securities of, or other interests in,   The Policy requires that bank deposits be secured as
any open-end or closed-end management type                   provided by Chapter 280, Florida Statutes, and that
investment company or investment trust registered            the banks must be fully insured by the Federal
under the Investment Company Act of 1940,                    Deposit Insurance Corporation (FDIC) or the
provided their portfolio is limited to United States         Federal Savings and Loan Insurance Corporation
Government obligations and to repurchase                     (FSLIC) and approved by the State Treasurer as a
agreements fully collateralized by such United               public depository. At September 30, 2006, all of the
States     Government      obligations;      Repurchase      County’s bank deposits were in qualified public
agreements with any primary brokers/dealers                  depositories.
collateralized by direct obligations of United States,
or U.S. government sponsored corporation/                    The Policy requires execution of a third-party
instrumentalities or U.S. government agencies;               custodial safekeeping agreement for all purchased
Bonds, notes or obligations of any state of the United       securities and collateral, and requires that they be
States, any municipality, political subdivision,             held in the County’s name. As of September 30,
agency or authority of this state which are exempt           2006, $940,000 was held in a bank’s trust department
from federal income taxation which are rated by any          in the County’s name.
nationally recognized rating agency for municipal
bonds in any of the two highest classifications; SEC         Interest Rate Risk
registered, no-load money market mutual funds
whose portfolios consist of tax exempt securities and        The Policy requires an average minimum dollar
repurchase agreements, whose shares of the mutual            amount equivalent to eight weeks of expenditures
fund must be rated in the highest category by a              shall be held in a liquid investment, and securities
nationally recognized rating service; Florida Local          will not be directly invested in or accepted as
Government Investment Trust (FLGIT); and SEC                 collateral that have a maturity date greater than five
registered money market mutual funds with average            (5) years from the settlement date.
portfolio maturities under 120 days, whose
portfolios consist of U.S. Government securities and         Concentration of Credit Risk
repurchase agreements secured by such securities.
                                                             The Policy establishes limitations on portfolio
The Policy requires that collateral for overnight and        composition in order to control concentration of
term repurchase agreements must maintain a                   credit risk. The Policy allows 100 percent of the
minimum price of 101 percent on U.S. Treasuries              portfolio to be invested in United States
and 102 percent on Agencies and Instrumentalities            Treasuries/Agencies, 75 percent to be invested in
not to exceed five (5) years, and must be “marked to         SBA, 50 percent to be invested in repurchase
market” on a weekly basis. The Policy also requires          agreements, 25 percent to be invested in mutual




 46
                                                                                            Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


funds, and 20 percent to be invested in Certificate of   Reconciliation of cash and cash equivalents, and
Deposits or FLGIT. No more than 25 percent of the        investments from the schedule of deposits and
total portfolio can be invested with one Investment      investments to the basic financial statements (dollars
Company. The portion of the County’s portfolio           in thousands):
invested in Federal instrumentalities is detailed as
follows, at September 30, 2006:                          Primary government
                                                          Current:
                                         Percent of         Cash and cash equivalents             $1,034,903
                Issuer                   Portfolio           Cash and cash equivalents
                                                               with fiscal agent                     108,367
Federal Home Loan Bank                     15.93%           Investments                               17,978
Federal National Mortgage Association      15.78%         Restricted:
Federal Home Loan Mortgage Corp.            9.71%           Cash and cash equivalents                171,984
Federal Farm Credit Bank                    1.45%           Cash and cash equivalents
Total Federal Instrumentalities            42.87%              with fiscal agent                      78,044
                                                            Investments                               50,077
                                                         Agency Funds
                                                            Cash and cash equivalents                 73,881
                                                         Total                                    $1,535,234




                                                                                                          47
 Lee County, Florida
                                                             Lee County, Florida
                                          NOTES TO THE FINANCIAL STATEMENTS
                                                                September 30, 2006


Receivables

At September 30, 2006, receivables for the County's major funds and all other funds in aggregate were as follows (dollars in
thousands):
                                                    Lee                            Road                          Non-major          Total
                                   General         County                         Impact         Capital        Governmental     Governmental
                                    Fund           Library          MSTU             Fees      Improvement         Funds             Funds
 Accounts                            $32,641                           $439                            $92              $830            $34,002
 Special assessments                                                                                                   5,517              5,517
 Accrued interest                       2,229           $441             594            $850          1,235            1,982              7,331
 Less: allowance for bad debt         (25,206)                                                                                          (25,206)
Total net receivables                  $9,664           $441          $1,033            $850         $1,327           $8,329            $21,644


    Total net receivables reported in governmental funds:                                                                               $21,644
     Internal service fund total receivables                                                                                               1,090
     Reclassification of grants receivable from due from other governments                                                                8,048
    Receivable reported on the Statement of Net Assets for Governmental Activities:                                                     $30,782


                                                                                                Non-Major          Total            Internal
                                    Port         Water and Transportation         Solid         Enterprise       Enterprise         Service
                                  Authority      Wastewater   Facilities          Waste          Funds            Funds              Funds
 Accounts                             $5,733         $5,263          $173           $6,687             $92           $17,948               $640
 Grants                                7,809          1,207                          3,612             952            13,580
 Notes                                                  642                            320                                962
 Special assessments                                                                 2,420                             2,420
 Accrued interest                           1            355             250            53                 58             717               450
 Less: allowance for bad debt            (250)          (181)                                                            (431)
Total net receivables                 $13,293         $7,286            $423         $13,092         $1,102          $35,196              $1,090

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, 2006, was $320,000. The loan was made to Hendry County for
permitting an ash landfill site to be built in their county.




      48
                                                                                                                 Lee County, Florida
                                                    Lee County, Florida
                                   NOTES TO THE FINANCIAL STATEMENTS
                                                     September 30, 2006


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, 2006, were as follows (dollars in
thousands):
                                                                                                                    Internal
                                     Port         Water and      Transportation      Solid         Enterprise       Service
                                   Authority      Wastewater        Facilities       Waste           Total           Funds


 Cash and cash equivalents             $27,155        $111,222         $28,388          $5,219         $171,984
 Cash and cash equivalents
   with fiscal agent                                    10,793          11,493          55,406           77,692            $352
 Investments                            26,900                           6,854          16,323           50,077
 Receivables (net):
   Accounts                              2,222              23             69                             2,314
   Special assessments                                   1,151                                            1,151
   Accrued interest                        65              606              15            379             1,065
 Other                                                     721           1,407                            2,128
   Total                               $56,342        $124,516         $48,226         $77,327         $306,411            $352


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, 2006, (dollars in thousands):
                                                                                                                    Internal
                                     Port         Water and      Transportation      Solid         Enterprise       Service
                                   Authority      Wastewater        Facilities       Waste           Total           Funds


 Debt service:
   Revenue bonds                       $30,673         $12,416         $11,494         $33,484          $88,067            $352
   Other                                                 1,642           1,605                            3,247
 Renewal and replacement                  500           15,602           7,318           1,500           24,920
 Capital improvements and
   construction                         25,169          89,502          25,866          39,663          180,200
 Deposits                                                5,354           1,943                            7,297
 Landfill closure and
   postclosure costs                                                                     2,680            2,680
   Total net restricted assets         $56,342        $124,516         $48,226         $77,327         $306,411            $352




                                                                                                                      49
         Lee County, Florida
                                                     Lee County, Florida
                                  NOTES TO THE FINANCIAL STATEMENTS
                                                      September 30, 2006

Capital Assets
Capital asset activity for the fiscal year ended September 30, 2006, was as follows (dollars in thousands):
                                                            Beginning                                         Ending
                                                             Balance       Increases       Decreases          Balance
Governmental Activities:
 Capital assets not being depreciated:
   Artwork                                                          $35          $270              ($2)             $303
   Land                                                         278,336        40,575                            318,911
   Construction in progress                                     188,971       146,635           (2,615)          332,991
   Total capital assets not being depreciated                   467,342       187,480           (2,617)          652,205
 Capital assets being depreciated:
   Buildings                                                    207,663        18,445             (593)          225,515
   Improvements other than buildings                             44,225         1,698             (346)           45,577
   Machinery and equipment                                      167,049        31,349          (13,787)          184,611
   Infrastructure                                               403,069         3,568              (16)          406,621
   Total capital assets being depreciated                       822,006        55,060          (14,742)          862,324
 Less accumulated depreciation for:
   Buildings                                                     73,398         5,519             (235)           78,682
   Improvements other than buildings                             14,282         2,429             (128)           16,583
   Machinery and equipment                                       98,250        21,392          (10,997)          108,645
   Infrastructure                                               114,353        10,453                            124,806
   Total accumulated depreciation                               300,283        39,793          (11,360)          328,716
   Total capital assets being depreciated, net                  521,723        15,267           (3,382)          533,608
 Total governmental activities capital assets, net             $989,065      $202,747          ($5,999)        $1,185,813

Business-Type Activities:
 Capital assets not being depreciated:
   Land
     Port Authority                                            $127,208                                         $127,208
     Water and Wastewater                                         9,718          $738                             10,456
     Transportation Facilities                                   44,477                                           44,477
     Solid Waste                                                 15,906           616                             16,522
     Other non-major - Transit                                       65                                               65
         Total land                                             197,374          1,354                 0         198,728
   Construction in progress
     Port Authority                                              27,716        48,613         ($29,120)           47,209
     Water and Wastewater                                        72,991        30,821          (12,404)           91,408
     Transportation Facilities                                   44,321        63,376                            107,697
     Solid Waste                                                 25,741        64,762             (706)           89,797
     Other non-major - Transit                                       25           395                                420
         Total construction in progress                         170,794       207,967          (42,230)          336,531
   Total capital assets not being depreciated                   368,168       209,321          (42,230)          535,259
 Capital assets being depreciated:
   Buildings
     Port Authority                                             331,066        18,965                            350,031
     Water and Wastewater                                        30,783           264                             31,047
     Transportation Facilities                                    4,850                                            4,850
     Solid Waste                                                 94,995                6                          95,001
     Other non-major - Transit                                    5,321                            (42)            5,279
         Total buildings                                        467,015        19,235              (42)          486,208
 50
                                                                                                Lee County, Florida
                                                   Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                                    September 30, 2006

Capital Assets (continued)
                                                          Beginning                                   Ending
                                                           Balance       Increases     Decreases      Balance
Business-Type Activities (continued):
 Capital assets being depreciated (continued):
   Improvements other than buildings
      Port Authority                                           18,071           717                       18,788
      Water and Wastewater                                    220,883        12,694         (4,641)      228,936
      Transportation Facilities                                 2,349                           (1)        2,348
      Solid Waste                                              12,961                                     12,961
      Other non-major - Transit                                    71                           (5)           66
         Total improvements other than buildings              254,335        13,411         (4,647)      263,099
   Machinery and equipment
      Port Authority                                           27,749          1,691         (195)        29,245
      Water and Wastewater                                     51,280          4,722         (386)        55,616
      Transportation Facilities                                 6,477            360          (66)         6,771
      Solid Waste                                              91,803            790          (16)        92,577
      Other non-major - Transit                                16,219            482          (45)        16,656
         Total machinery and equipment                        193,528          8,045         (708)       200,865
   Infrastructure
      Port Authority                                          228,427          8,219                      236,646
      Water and Wastewater                                    238,715          8,253         (106)        246,862
      Transportation Facilities                               134,713                        (111)        134,602
      Solid Waste                                               4,371                                       4,371
         Total infrastructure                                 606,226        16,472           (217)       622,481
   Total capital assets being depreciated                   1,521,104        57,163         (5,614)     1,572,653
 Less accumulated depreciation for:
   Buildings
      Port Authority                                           42,202         6,435                       48,637
      Water and Wastewater                                      7,941           686                        8,627
      Transportation Facilities                                 3,087           194                        3,281
      Solid Waste                                              30,075         3,004                       33,079
      Other non-major - Transit                                 1,283           121            (42)        1,362
         Total buildings                                       84,588        10,440            (42)       94,986
   Improvements other than buildings
      Port Authority                                            5,661           965            (76)        6,550
      Water and Wastewater                                     54,498         8,642         (2,246)       60,894
      Transportation Facilities                                 1,761            80             (1)        1,840
      Solid Waste                                               3,222           423                        3,645
      Other non-major - Transit                                    62             2             (3)           61
         Total improvements other than buildings               65,204        10,112         (2,326)       72,990
   Machinery and equipment
      Port Authority                                           11,416         1,923          (190)        13,149
      Water and Wastewater                                     15,039         3,916          (272)        18,683
      Transportation Facilities                                 3,712           656           (52)         4,316
      Solid Waste                                              32,196         3,579           (16)        35,759
      Other non-major - Transit                                10,571         1,583           (51)        12,103
         Total machinery and equipment                         72,934        11,657          (581)        84,010



                                                                                                                51
  Lee County, Florida
                                                       Lee County, Florida
                                   NOTES TO THE FINANCIAL STATEMENTS
                                                        September 30, 2006

Capital Assets (continued)
                                                                Beginning                                                 Ending
                                                                  Balance          Increases         Decreases            Balance
Business-Type Activities (continued):
 Less accumulated depreciation for (continued):
     Infrastructure
       Port Authority                                                 51,720              6,656                  (1)            58,375
       Water and Wastewater                                           84,192              8,256                 (52)            92,396
       Transportation Facilities                                      40,718              3,824                 (76)            44,466
       Solid Waste                                                     1,100                141                                  1,241
          Total infrastructure                                       177,730             18,877                (129)           196,478
     Total accumulated depreciation                                  400,456             51,086             (3,078)            448,464
   Total capital assets being depreciated, net                     1,120,648             6,077             (2,536)           1,124,189
 Total business-type activities capital assets, net               $1,488,816          $215,398           ($44,766)          $1,659,448



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, 2006, was
$3,821,000.


Depreciation and amortization expense was charged to functions as follows (dollars in thousands):

Governmental activities:                                                       Business-type activities:
 General government                      $11,893                                Port Authority                                 $16,334
 Public safety                              9,423                               Water & Wastewater                              21,439
 Physical environment                         534                               Transportation Facilities                        4,754
 Transportation                            10,268                               Solid Waste                                      7,147
 Economic environment                         135                               Other non-major Transit                          1,703
 Human services                               697                                  Total depreciation for
 Culture and recreation                     5,906                                   business-type activities                   $51,377
     Total depreciation for
     governmental activities             $38,856



The total depreciation/amortization expense by function does not agree with the related disclosed accumulated depreciation
because of 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, 2006. The significant commitments for remaining contracts
were as follows (dollars in thousands):

                                                                 Contract           Amount           Remaining
     Project                                                     Amount          Spent-to-date     Commitment            Retainage


     Transportation                                                 $267,492          $119,701           $147,791               $8,371
     Water & Wastewater                                               68,941             39,472             29,469               3,069
     Solid Waste                                                      71,008             31,537             39,471               2,795
     Port Authority                                                  284,199           263,745              20,454               5,460
     Library                                                          13,208                206             13,002               9,142
     Parks and Recreation                                             26,005             20,525              5,480               1,310
     Other                                                            78,175            31,998             46,177                1,841
         Total                                                      $809,028          $507,184           $301,844              $31,988

52
                                                                                                               Lee County, Florida
                                                                                                            Lee County, Florida
                                                                                        NOTES TO THE FINANCIAL STATEMENTS
                                                                                                                September 30, 2006

                      Interfund Transactions
                                                                                                        Due To/From Other Funds




Lee County, Florida
                      Interfund balances for the year ended September 30, 2006, consisted of the following (dollars in thousands):
                      Receivable Fund/Payable Fund:                                                             Amount      Receivable Fund/Payable Fund:                                                 Amount
                      Due to: General Fund                                                                                  Due to: Non-major governmental funds
                         Non-major governmental funds           Interfund billing for services and                             General (Constitutionals)               Excess fees and Ad Valorem Taxes       335
                                                                return of excess fees                       $      3,284       Non-major governmental funds            Operations                            1,211
                                       Total due to general fund                                                   3,284       Transportation Facilities               Operations                            5,616
                      Due to: Lee County Library                                                                                            Total due to non-major governmental funds                        7,162
                         General (Constitutionals)              Excess fees and Ad Valorem Taxes                    375     Due to: Transportation Facilities
                                       Total due to library                                                         375        Non-major governmental funds            Operations                                  5
                      Due to: MSTU                                                                                          Due to: Solid Waste
                         General (Constitutionals)              Excess fees and Ad Valorem Taxes                    694        General (Constitutionals)               Excess fees and Ad Valorem Taxes       163
                         Non-major governmental funds           Interfund billing for services                       49                     Total due to enterprise funds                                     168
                                       Total due to MSTU                                                            743     Due to: Internal service funds
                      Due to: Capital Improvements                                                                             General (Constitutionals)               Operations                             400
                         General (Constitutionals)              Excess fees and Ad Valorem Taxes                    690        Non-major governmental funds            Operations                              67
                                       Total due to Capital Improvements                                            690        Port Authority                          Operations                                  6
                                                                                                                                            Total due to internal service funds                               473


                                                                                                                               Total                                                                       $12,895


                                                                                                 Advances To/Advances From Other Funds
                      Interfund advances for the year ended September 30, 2006, consisted of the following (dollars in thousands):
                      Receivable Fund/Payable Fund:                                                             Amount
                      Advances to: General Fund                                                                                Loan to purchase Fisherman's Cooperative:                                   $11,250
                         Capital Improvements                   Interfund land acquisition loan                   $1,500       Loan to finish County Road 951:                                              22,500
                         Non-major governmental funds           Interfund construction and land acquisition                    Loan for Three Oaks Road Project and Boca Grande drainage                     6,500
                                                                loans                                             44,460       Loan to Community Parks Impact Fees Bonita Construction                       5,710
                                       Total advances from general fund                                     $     45,960                                                                                   $45,960




             53
            54
                                                                                        Lee County, Florida
                                                                       NOTES TO THE FINANCIAL STATEMENTS
                                                                                            September 30, 2006

                      Interfund Transactions (continued)
                      Interfund Transfers

                      Interfund transfers for the year ended September 30, 2006, consisted of the following (dollars in thousands):

                                                                                                              Transfers In
                                                                                               Non-major                                 Other      Internal    Capital
                                                  General                         Capital       Govern't      Water and      Solid     Non-Major     Service     Asset
                                                   Fund      Library   MSTU      Improve         Funds        Wastewater     Waste      Transit      Funds     Transfer*    Total
                      Transfers out:
                      General fund                              $360      $312     $30,637          $30,744                     $163      $11,365     $1,150                $74,731
                      MSTU                          $1,174                           1,763           11,602                                                                  14,539
                      Impact Fees - Roads                                                               396                                                                     396
                      Capital Improvements          22,625                                              736                                                                  23,361
                      Non-major government           4,353                 229       6,170           17,553                      158         698                             29,161
                      Water & Wastewater                                                                                                                            $11          11
                      Trans Facilities                                                                7,938                                                                   7,938
                      Other Non-Major Transit                                                                                                                         2           2
                      Internal Service                                                                                                         5                     37          42
                      Capital Asset Transfer*                                                                          $26                               623        151         800
                                                   $28,152      $360      $541     $38,570          $68,969            $26     $321       $12,068     $1,773       $201    $150,981




                      (*This represents assets that were transferred to/from proprietary funds to/from capital assets. Since the capital assets fund group is no longer reported
                      as a fund group on the financial statements there are "uncategorized" transfers.)

                      The majority of interfund transfers were for recurring annual transfers. A non-recurring budgeted transfer of $30,000,000 during the year was made
                      from the General fund to the Capital Improvements fund to help pay for the new Justice Center construction project. In addition, a non-reoccurring
                      budgeted transfer of $22,500,000 was made from the Capital Improvement fund to the General Fund for maintenance projects transferred to the General
                      Fund.




Lee County, Florida
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2006


Long-Term Obligations                                   Capital Leases

Leases
                                                        T  he County has entered into several capital lease
                                                           arrangements outlined as follows:
Operating Leases
                                                            For the purpose of acquiring a Heidelberg
                                                            printer. The annual interest rate is 4.87 percent
T  he County is currently committed to various
   operating leases with terms in excess of one
year. The future minimum rental payments as of
                                                            with the lease maturing in fiscal year 2007. The
                                                            outstanding balance as of September 30, 2006,
                                                            was $5,000.
September 30, 2006, were as follows (dollars in
thousands):
                                                            Solid Waste has entered into a capital lease
                                                            obligation for the purpose of purchasing a Volvo
Fiscal Year(s)                Amount
                                                            loader. The annual interest rate is 3.79% with
                                                            the lease maturing in fiscal year 2008. The
    2007                       $3,443
                                                            outstanding balance as of September 30, 2006,
    2008                        2,877
                                                            was $79,000.
    2009                        1,846
    2010                        1,085
                                                        The outstanding capital lease balances at
    2011                          633
                                                        September 30, 2006, were as follows (dollars in
 2012-2015                         72
                                                        thousands):
    Total                     $ 9,956
                                                        Governmental Activities                 $5
For all operating leases, rental expense is recorded
                                                        Business-type Activities                79
with separate amounts for minimum rentals,
                                                        Total                                 $ 84
contingent rentals, and sublease rentals.        The
following schedule shows the total rental expense
                                                        Assets acquired through capital leases at September
for all operating leases, including those with terms
                                                        30, 2006, are as follows (dollars in thousands):
of less than one year, for the year ended
September 30, 2006 (dollars in thousands):
                                                                                         Machinery
                                                                                        & Equipment
    Minimum rentals              $3,788
    Contingent rentals              275
                                                        Governmental Activities               $242
    Sublease rentals                  3
                                                        Business-type Activities               165
       Total rent expense        $4,066
                                                        Total                                 $407
An operating lease has a contingent rental when the
amount of the rental payment may change based on        Capital Leases are recorded at total present value of
the occurrence of certain events. For example, rental   future minimum lease payments.           The annual
payments may increase due to additional usage or a      payment requirements and present values of these
change in the Consumer Price Index (CPI) rate or        payments at September 30, 2006, were as follows
other economic indicators. Most operating leases        (dollars in thousands):
have the option to renew for either a one or two year
term. In most cases, the County expects to renew or
replace all operating leases.




                                                                                                         55
  Lee County, Florida
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006


  Fiscal             Governmental Business-type                fees, pledged gas taxes, and sales tax. The
  Year(s)              Activities   Activities                 outstanding balance was $18,950,000.
    2007                   $ 5         $51                 •   Series 1997 Local Option Gas Tax Refunding
    2008                                30                     Revenue Bonds for $14,995,000 at interest rates
Totals                        5         81                     ranging from 3.75 percent to 5 percent (effective
Less: Imputed Interest                  (2)                    interest rate of 4.74 percent), collateralized by a
Total PV of net minimum                                        lien on and a pledge of local option gas tax
    lease payments          $5         $79                     revenues and the proceeds of collection of
                                                               certain special assessments which may be levied
Revenue Bonds                                                  by the County on benefited properties. The
                                                               outstanding balance was $11,890,000.

T   he County issued revenue bonds for both
    governmental and business-type activities. The
descriptions and balances of the outstanding
                                                           •   Series 1999A Capital Refunding Revenue Bonds
                                                               for $36,190,000 at interest rates ranging from 4.4
revenue bonds as of September 30, 2006, were as                percent to 5.25 percent (effective interest rate of
follows:                                                       4.92 percent), collateralized by a lien on and a
                                                               pledge of non-ad valorem funds including
                                                               ambulance service receipts, building permits,
               Governmental Activities
                                                               zoning fees, data processing fees, excess County
                                                               Officer fees, franchise fees, guaranteed
•    Series 1993B Capital Refunding Revenue Bonds
                                                               entitlement funds, investment earnings, license
     for $36,238,000 at interest rates ranging from
                                                               fees, pledged gas taxes, and sales tax. The
     2.45 percent to 5.25 percent on current interest
                                                               outstanding balance was $34,220,000.
     paying bonds and 5.85 percent to 5.9 percent on
     capital appreciation bonds (effective interest rate
                                                           •   Series 2000 Capital Revenue Bonds for
     of 5.66 percent), collateralized by a lien on and a
                                                               $18,200,000 at interest rates ranging from 4.3
     pledge of non-ad valorem funds including
                                                               percent to 5.375 percent (effective interest rate of
     ambulance service receipts, building permits,
                                                               5.12 percent), collateralized by a lien on and a
     zoning fees, data processing fees, excess County
                                                               pledge of non-ad valorem funds including
     Officer fees, franchise fees, guaranteed
                                                               ambulance service receipts, building permits,
     entitlement funds, investment earnings, license
                                                               zoning fees, data processing fees, excess County
     fees, pledged gas taxes, and sales tax. Interest
                                                               Officer fees, franchise fees, guaranteed
     on the capital appreciation bonds is
                                                               entitlement funds, investment earnings, license
     compounded semi-annually and is payable at
                                                               fees, pledged gas taxes, and sales tax. The
     maturity or early redemption. Accreted interest
                                                               outstanding balance was $13,330,000.
     at September 30, 2006, was $6,881,000. The
     outstanding balance, not including accreted
                                                           •   Series 2003 Capital and Transportation Facilities
     interest, was $5,938,000.
                                                               Refunding Revenue Bonds for $40,815,000 at
                                                               interest rates ranging from 2 percent to 5 percent
•    Series 1997A Capital Refunding Revenue Bonds
                                                               (effective interest rate of 4.88 percent),
     for $18,950,000 at interest rates ranging from
                                                               collateralized by a lien on and a pledge of non-
     4.875 percent to 5.75 percent (effective interest
                                                               ad valorem funds including ambulance service
     rate of 5.14 percent), collateralized by a lien on
                                                               receipts, building permits, zoning fees, data
     and a pledge of non-ad valorem funds including
                                                               processing fees, excess County Officer fees,
     ambulance service receipts, building permits,
                                                               franchise fees, guaranteed entitlement funds,
     zoning fees, data processing fees, excess County
                                                               investment earnings, license fees, pledged gas
     Officer fees, franchise fees, guaranteed
     entitlement funds, investment earnings, license




    56
                                                                                          Lee County, Florida
                                          Lee County, Florida
                                NOTES TO THE FINANCIAL STATEMENTS
                                          September 30, 2006


     taxes, and sales tax. The outstanding balance              payments under the Master Lease-Purchase
     was $39,895,000.                                           Agreement.  The outstanding balance was
                                                                $8,185,000.
•    Series 2003 Road Improvement Refunding
     Revenue Bond for $4,953,000 at an interest rate        •   Series 1996 Certificates of Participation for
     of 2.94 percent (effective interest rate of 3.89           $12,125,000 at interest rates ranging from 3.6
     percent), collateralized by a lien on and a pledge         percent to 5 percent (effective interest rate of
     of the voted one-cent gas tax imposed by the               5.01 percent), with certificate payments payable
     County.       The outstanding balance was                  from non-ad valorem revenues of the County
     $3,107,000.                                                and ad valorem tax revenues of the County,
                                                                which are legally available to make lease
•    Series 2004 Tourist Development Tax Refunding              payments under the Master Lease-Purchase
     Revenue Bonds for $8,195,000 at interest rates             Agreement.      The outstanding balance was
     ranging from 2 percent to 5.25 percent (effective          $4,430,000.
     interest rate of 5.22 percent), collateralized by a
     lien on and a pledge of the tourist development                      Business-Type Activities
     tax, gross revenues of the baseball stadium, and
     investment earnings. The outstanding balance           •   Series 1998 Passenger Facility Charge Revenue
     was $7,120,000.                                            and Refunding Bonds for $52,225,000 at interest
                                                                rates ranging from 3.6 percent to 5 percent
•    Series 2004 Capital Revenue Bonds for                      (effective interest rate of 5.21 percent),
     $55,530,000 at interest rates ranging from 4               collateralized by a lien on and a pledge of the
     percent to 4.99 percent (effective interest rate of        passenger facility charge revenues.        The
     4.99 percent) collateralized by a lien on and a            outstanding balance was $36,070,000.
     pledge of non-ad valorem funds including
     ambulance service receipts, building permits,          •   Series 2000A (AMT) Airport Revenue Bonds, for
     zoning fees, data processing fees, excess County           $291,155,000 at interest rates ranging from 5.4
     Officer fees, franchise fees, guaranteed                   percent to 6.125 percent (effective interest rate of
     entitlement funds, investment earnings, license            6.16 percent), collateralized by a lien on and a
     fees, pledged gas taxes, and sales tax. The                pledge of the net revenues of Southwest Florida
     outstanding balance was $55,530,000.                       International Airport (SWFIA). The outstanding
                                                                balance was $291,155,000.
•    Series 2004 Five Cent Local Option Gas Tax
     Refunding Revenue Bonds for $26,920,000 at             •   Series 2002 Airport Revenue Refunding Bonds
     interest rates ranging from 2.25 percent to 5              for $37,065,000 at interest rates ranging from 2.0
     percent (effective interest rate of 4.69 percent),         percent to 5.0 percent (effective interest rate of
     collateralized by a lien on and pledge of the              5.59 percent), collateralized by a lien on and a
     local option gas tax revenues. The outstanding             pledge of the net revenues of SWFIA. The
     balance was $26,570,000.                                   outstanding balance was $24,800,000.

•    Series 1993 Certificates of Participation for          •   Series 2005 Airport Revenue Refunding Bonds,
     $17,245,000 at interest rates ranging from 2.7             for $37,805,000 at interest rates ranging from 3.5
     percent to 5.125 percent (effective interest rate of       percent to 5 percent (effective interest rate of
     5.09 percent), with certificate payments payable           5.642 percent), collateralized by a lien on and a
     from non-ad valorem revenues of the County                 pledge of net revenues of the SWFIA. The
     and ad valorem tax revenues of the County,                 outstanding balance was $37,775,000.
     which are legally available to make lease




                                                                                                               57
    Lee County, Florida
                                         Lee County, Florida
                               NOTES TO THE FINANCIAL STATEMENTS
                                         September 30, 2006


•   Series 1993 Water and Sewer Refunding                      lien on and pledge of the net revenues of the
    Revenue Bonds for $40,000,000 at interest rates            Sanibel Bridge, Cape Coral Bridge, and
    ranging from 2.3 percent to 5.4 percent (effective         Midpoint Memorial Bridge Facilities. The
    interest rate of 5.84 percent), collateralized by a        outstanding balance was $57,380,000.
    lien on and a pledge of the net revenues of the
    Lee County Water and Wastewater System as              •   Series 2005A Transportation Facilities Refunding
    defined by the bond resolutions and certain                Revenue Bonds for $30,285,000 at interest rates
    special assessment collections of the System.              ranging from 2 percent to 5 percent (effective
    The outstanding balance was $2,635,000.                    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 $30,195,000.
    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 $119,495,000.                                  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
    ranging from 2 percent to 5 percent (effective             Memorial Bridge Facilities. The outstanding
    interest rate of 6.12 percent), collateralized by a        balance was $63,865,000.
    lien on and a pledge of the net revenues of the
    Lee County Water and Wastewater System. The            •   Series 2001 Solid Waste System Refunding
    outstanding balance was $57,240,000.                       Revenue Bonds for $140,925,000 at interest rates
                                                               ranging from 2.625 percent to 5.625 percent
•   Series 2003B Water and Sewer Revenue Bonds                 (effective interest rate of 5.81 percent),
    for $8,285,000 at an interest rate of 5 percent            collateralized by a lien on and a pledge of net
    (effective interest rate of 4.74 percent),                 revenues of the Lee County Solid Waste System.
    collateralized by a lien on and a pledge of the            The outstanding balance was $98,960,000.
    net revenues of the Lee County Water and
    Wastewater System. The outstanding balance             •   Series 2006A Solid Waste System Revenue
    was $8,285,000.                                            Bonds, for $83,335,000 at interest rates ranging
                                                               from 4.3 percent to 5.125 percent (effective
•   Series 2001A Transportation Facilities Refunding           interest rate of 4.955 percent), collateralized by a
    Revenue Bonds for $64,005,000 at interest rates            lien on and a pledge of net revenues of the Lee
    ranging from 3 percent to 5.5 percent (effective           County Solid Waste System. The outstanding
    interest rate of 6.274 percent), collateralized by a       balance was $83,335,000.
    lien on and pledge of the net revenues of the
    Sanibel Bridge, Cape Coral Bridge, and                 •   Series 2006B Solid Waste System Refunding
    Midpoint Memorial Bridge Facilities.            The        Revenue Bonds, for $21,710,000 at interest rates
    outstanding balance was $53,745,000.                       ranging from 4 percent to 5 percent (effective
                                                               interest rate of 5.588 percent), collateralized by a
•   Series 2004B Transportation Facilities Refunding           lien on and a pledge of net revenues of the Lee
    Revenue Bonds for $58,375,000 at interest rates            County Solid Waste System. The outstanding
    ranging from 2 percent to 5 percent (effective             balance was $21,710,000.
    interest rate of 5.97 percent) collateralized by a




    58
                                                                                           Lee County, Florida
                                                    Lee County, Florida
                                          NOTES TO THE FINANCIAL STATEMENTS
                                                    September 30, 2006


The annual debt service requirements for revenue bonds at September 30, 2006, were as follows (dollars in
thousands):



                                  Governmental                           Business-type
                                    Activities                               Activities                                        Total
  Fiscal Year(s)           Principal               Interest         Principal               Interest               Principal               Interest
      2007                      $18,297            $10,196            $24,110                $38,686                $42,407                $48,882
      2008                       19,095              9,389             32,380                 49,066                 51,475                    58,455
      2009                       19,920              8,526             33,460                 47,660                 53,380                    56,186
      2010                       19,715              7,612             34,880                 46,163                 54,595                    53,775
      2011                       17,285              6,713             36,530                 44,551                 53,815                    51,264
    2012-2016                    45,893             27,155            188,445                190,449                234,338                217,604
    2017-2021                    50,300             16,278            171,175                146,975                221,475                163,253
    2022-2026                    38,660              4,136            195,310                100,482                233,970                104,618
    2027-2031                                                         178,415                 47,194                178,415                    47,194
    2032-2036                                                          91,940                  8,479                 91,940                     8,479
      Total                    $229,165            $90,005           $986,645               $719,705              $1,215,810              $809,710




                                                                   Business-type Activities
                       Port Authority                 Water and Wastewater           Transportation Facilities                   Solid Waste
Fiscal Year(s)     Principal          Interest        Principal     Interest          Principal        Interest          Principal         Interest
    2007                              $10,943            $5,485       $8,650              $6,585         $9,620            $12,040             $9,473
    2008             $8,140               21,699          4,805        8,449               6,815          9,396                12,620           9,522
    2009              8,515               21,344          4,960        8,288               6,395          9,182                13,590           8,846
    2010              8,855               20,980          5,130        8,115               6,610          8,939                14,285           8,129
    2011              9,240               20,588          5,310        7,925               6,890          8,657                15,090           7,381
 2012-2016           55,195               94,513         29,915       36,092              43,300         34,673                60,035          25,171
 2017-2021           64,330               76,973         37,645       28,110              39,635         26,472                29,565          15,420
 2022-2026           70,700               58,213         47,695       17,799              38,925         17,478                37,990           6,992
 2027-2031           93,955               34,178         46,710        4,780              28,960          8,027                 8,790            209
 2032-2036           70,870                5,742                                          21,070          2,737
                   $389,800          $365,173          $187,655     $128,208          $205,185         $135,181           $204,005         $91,143




                                                                                                                                                59
  Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006



Defeased Bonds                                            Road Improvement Refunding Revenue Bond,
                                                            Series 2003
                                                          Capital & Transportation Facilities Refunding
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
                                                            Revenue Bond, Series 2003
                                                          Tourist Development Tax Refunding Revenue
service payments on old bonds. Accordingly, the             Bonds, Series 2004
trust account assets and the liability for the defeased   Five Cent Local Option Gas Tax Refunding Revenue
bonds are not included in the County’s financial            Bonds, Series 2004
statements.                                               Capital Revenue Bonds, Series 2004
                                                          Certificates of Participation, Series 1993
The amount of defeased bonds outstanding at               Certificates of Participation, Series 1996
September 30, 2006, consisted of the following            Passenger Facility Charge Revenue & Refunding
(dollars in thousands):                                     Bonds, Series 1998
                                                          Airport Revenue Bonds, Series 2000A
Capital Bonds, Series 1979                    $5,150      Airport Revenue Refunding Bonds, Series 2002
Justice Center Complex, Inc. Improve-                     Airport Revenue Refunding Bonds, Series 2005
    ment Revenue Bonds, Series 1981            28,875     Water and Sewer Refunding Revenue Bonds, Series
Airport Revenue Bonds, Series 1980             11,990       1993
Airport Revenue Bonds, Series 1983              8,780     Water and Sewer Revenue Bonds, Series 1999A
Gulf Environmental Services, Inc. Water                   Water and Sewer Refunding Revenue Bonds, Series
    and Sewer System Revenue Bonds,                         2003A
    Series 1998                                53,405     Water and Sewer Revenue Bonds, Series 2003B
 Airport Revenue Bonds, Series 2000B           36,180     Transportation Facilities Refunding Revenue Bonds,
         Total                               $144,380       Series 2001A
                                                          Transportation Facilities Refunding Revenue Bonds,
Bond Resolutions                                            Series 2004B
                                                          Transportation Facilities Refunding Revenue Bonds,
                                                            Series 2005A
T   he resolution for the following bonds established
    certain accounts and determined the order in
which certain revenues are to be deposited into
                                                          Transportation Facilities Revenue Bonds, Series
                                                            2005B
                                                          Solid Waste System Refunding Revenue Bonds,
those accounts. In addition, there are various other
                                                            Series 2001
covenants established by the official statements and
                                                          Solid Waste System Revenue Bonds, Series 2006A
County resolutions, including such items as debt
                                                          Solid Waste System Refunding Revenue Bonds,
service coverage, reporting requirements, and
                                                            Series 2006B
maintenance of facilities. Management believes that
it has complied, in all material respects, with these
covenants. All required balances at September 30,         Debt Refundings
2006, were maintained on the following issues:

Revenue Bonds                                             O    n January 10, 2006, the County issued Airport
                                                               Revenue Refunding Bonds, Series 2005, in the
                                                          amount of $37,805,000 at interest rates ranging from
Capital Refunding Revenue Bonds, Series 1993B             3.5 percent to 5 percent maturing in fiscal years 2006
Capital Refunding Revenue Bonds, Series 1997A             through 2033. Proceeds of the bonds were used to
Local Option Gas Tax Refunding Revenue Bonds,             advance refund $36,180,000 of outstanding Airport
  Series 1997                                             Revenue Bonds, Series 2000B (Non-AMT). at an
Capital Refunding Revenue Bonds, Series 1999A             interest rate of 5.75 percent on current interest
Capital Revenue Bonds, Series 2000




 60
                                                                                       Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


paying bonds maturing on October 1 in years 2032         Variable Debt
and 2033.

On the date of issuance of the Series 2005 Bonds, the
County purchased US Government Treasury and
                                                         T   he County has entered into loan agreements
                                                             with the Florida Local Government Finance
                                                         Commission (FLGFC) for governmental and
Agency Securities which were placed in an                business-type activities. The descriptions and the
irrevocable trust with an escrow agent to provide for    outstanding balances of the variable debt at
payment in full of the redemption price of the           September 30, 2006, were as follows:
refunded Series 2000B Bonds. As a result, the
refunded portion of the Airport Revenue Bonds,               Commercial paper loan A-19-1 for $20,000,000
Series 2000B, is considered defeased as of January           was issued on June 10, 2004, to finance certain
10, 2006, and the liability for the refunded bonds has       transportation related capital projects in
been removed from the financial statements.                  business-type activities. Payments are payable
                                                             from non-ad valorem revenues and other legally
The advance refunding resulted in a reduction of             available County funds not otherwise pledged
additional future debt service requirements by               and from the net revenues of the Transportation
$4,627,000, which resulted in an economic gain (the          Facilities. Principal is due at maturity on
difference between the present values of the old debt        December 2, 2008, and interest is payable
and new debt service requirements) of $2,417,000.            monthly on the unpaid balance at variable rates.
                                                             For the year ended September 30, 2006, the rates
On May 17, 2006, the County issued Solid Waste               ranged from 2.67 percent to 3.61 percent. The
System Refunding Revenue Bonds, Series 2006B, in             outstanding balance was $12,400,000.
the amount of $21,710,000 at interest rates ranging
from 4 percent to 5 percent maturing on October 1 in         Commercial paper loans A-21-1, A-21-2, and
the years 2008 through 2015. Proceeds of the bonds           A-21-3 for $14,000,000 were issued on November
were used to currently refund the $24,515,000                1, 2005, April 20, 2006, and September 28, 2006,
outstanding portion of the Solid Waste System                respectively, to finance certain transportation
Revenue Bonds, Series 1995, at        interest rates         related capital projects in business-type
ranging from 5 to 5.375 percent on current interest          activities. Payments are payable from non-ad
paying bonds maturing on October 1 in years 2006             valorem revenues and other legally available
through 2015.                                                County funds not otherwise pledged and from
                                                             the net revenues of the Transportation Facilities.
On the date of issuance of the Series 2006B Bonds,           Principal is due at maturity on December 1,
the County purchased U.S. Government Securities              2009, and interest is payable monthly on the
which were placed in an irrevocable trust with an            unpaid balance at variable rates. For the year
escrow agent to provide for payment in full of the           ended September 30, 2006, the rates ranged from
redemption price of the refunded Series 1995 Bonds.          2.67 percent to 3.61 percent. The outstanding
As a result, the refunded portion of the Solid Waste         balance was $14,000,000.
System Revenue Bonds, Series 1995, is considered
defeased as of May 17, 2006, and the liability for the       Commercial paper loan A-18-1 for $1,040,000
refunded bonds has been removed from the                     was issued on September 14, 2006, to finance
financial statements.                                        capital projects used in governmental activities.
                                                             Payments are payable from non-ad valorem
The current refunding resulted in a reduction of             revenues and other legally available County
additional future debt service requirements by               funds not otherwise pledged. Principal is due at
$4,118,000, which resulted in an economic gain (the          maturity on March 4, 2008, and interest is
difference between the present values of the old debt        payable monthly on the unpaid balance at
and new debt service requirements) of $353,000.              variable rates. For the year ended September 30,




                                                                                                           61
  Lee County, Florida
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                       September 30, 2006


    2006, the rates ranged from 2.67 percent to 3.61        Cottage Point Waterline district loan was issued
    percent.      The outstanding balance was               on July 28, 2004, for $131,000. For the year
    $1,040,000.                                             ended September 30, 2006, the interest rate was
                                                            5.93 percent. The interest rate is fixed until 2014
    Commercial paper loan A-23-1 for $325,000 was           when it becomes variable and is calculated at
    issued on December 15, 2005, to finance capital         133 percent of the five-year Treasury note yield.
    projects used in governmental activities.               The outstanding balance was $101,000.
    Payments are payable from non-ad valorem
    revenues and other legally available County             Charlee Road Paving Improvements district
    funds not otherwise pledged. Principal is due at        loan was issued on June 15, 2005, for $218,000.
    maturity on December 2, 2008, and interest is           For the year ended September 30, 2006, the
    payable monthly on the unpaid balance at                interest rate was 5.19 percent. The interest rate
    variable rates. For the year ended September 30,        is fixed until 2015 when it becomes variable and
    2006, the rates ranged from 2.67 percent to 3.61        is calculated at 133 percent of the five-year
    percent. The outstanding balance was $325,000.          Treasury note yield. The outstanding balance
                                                            was $121,000.
The County has entered into a loan agreement with
a commercial bank to provide long-term financing        The Port Authority entered into a $10,000,000 line of
for certain capital projects used in governmental       credit on July 8, 2004, with a commercial bank to
activities. The loan is collateralized by special       finance certain airport-related capital projects in
assessments levied against the benefited property       business-type activities at an interest rate of 117
owners of certain municipal service benefit units       percent of London Interbank Offered Rates (LIBOR).
(MSBU) of the County. Interest is payable semi-         Effective January 1, 2006, a more favorable interest
annually. Principal is payable in equal annual          rate was negotiated of 67 percent of LIBOR plus 73
installments maturing in fiscal years 2015 and 2018.    basis points which was 4.30 percent as of September
The descriptions and the outstanding balances of the    30, 2006. To date the Port Authority has drawn
variable debt at September 30, 2006, were as follows:   $10,000,000 from the line of credit. Principal is
                                                        payable semi-annually beginning June 1, 2006 and
    Bal Isle Drive Sewer district loan was issued on    interest is payable monthly on the unpaid balance
    June 4, 2004, for $79,000. For the year ended       until final maturity on December 1, 2020. The line of
    September 30, 2006, the interest rate was 6.12      credit is collateralized by a lien on and a pledge of
    percent. The interest rate is fixed until 2014      the net revenues of Page Field General Aviation
    when it becomes variable and is calculated at       Airport. The outstanding balance as of September
    133 percent of the five-year Treasury note yield.   30, 2006, was $9,770,000.
    The outstanding balance was $61,000.
                                                        The annual debt service requirements for variable
    Country/Triple Crown Court Waterline district       debt at September 30, 2006, were as follows (dollars
    loan was issued on July 15, 2004, for $195,000.     in thousands):
    For the year ended September 30, 2006, the
    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
    Treasury note yield. The outstanding balance
    was $143,000.




 62
                                                                                      Lee County, Florida
                                           Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                           September 30, 2006



                       Governmental                       Business-type
                         Activities                         Activities                                    Total
Fiscal Year(s)     Principal          Interest      Principal               Interest          Principal            Interest
    2007                $42               $73             $475               $1,417               $517              $1,490
    2008              1,082                50              495                1,326              1,577               1,376
    2009                366                22            12,925                 936             13,291                 958
    2010                 41                17            14,550                 422             14,591                 439
    2011                 41                15              575                  314                616                 329
 2012-2016              183                40             3,350               1,157              3,533               1,197
 2017-2021               36                 3             3,800                 340              3,836                 343
                     $1,791              $220           $36,170              $5,912            $37,961              $6,132




Notes Payable
                                                                     Pinecrest district loan was issued on March 31,
T   he County has entered into loan agreements
    with several banks and government agencies.
These loans and agreements are used for both
                                                                     2000, for $499,000 at an interest rate of 6.332
                                                                     percent. The outstanding balance was $263,000.
governmental and business-type activities. The
descriptions and outstanding balances at September                   Rainbow Farms district loan was issued on April
30, 2006, were as follows:                                           18, 2002, for $66,000 at an interest rate of 5.365
                                                                     percent. The outstanding balance was $33,000.
Commercial Banks
                                                                     Iona Farms district loan was issued on April 18,
The County has entered into loan agreements with                     2002, for $59,000 at an interest rate of 5.365
two commercial banks to provide long-term                            percent. The outstanding balance was $30,000.
financing for certain capital projects. The loans are
collateralized by special assessments levied against                 University Landscaping district loan was issued
the benefited property owners of certain municipal                   on July 1, 2005, for $2,214,000 at an interest rate
service benefit units (MSBU) of the County. Interest                 of 5.096 percent. The outstanding balance was
is payable semi-annually. Principal is payable in                    $1,076,000.
equal annual installments maturing in fiscal years
2008 through 2017.                                                   Northeast Hurricane Bay district loan was
                                                                     issued on August 5, 2005, for $244,000 at an
    Whiskey Creek district loan was issued on May                    interest rate of 5.459 percent. The outstanding
    6, 1998, for $141,000 at an interest rate of 5.8                 balance was $206,000.
    percent. The outstanding balance was $22,000.
                                                                  Florida Department of Environmental Protection
    South Pebble/Broken Arrow district loan was
    issued on May 27, 1998, for $360,000 at an                       On October 17, 1991, the Lee County Water and
    interest rate of 5.74 percent. The outstanding                   Wastewater System entered into an agreement
    balance was $143,000.                                            with the Florida Department of Environmental
                                                                     Protection to borrow $10,135,000 at interest rates
    Diplomat Parkway district loan for $3,659,000                    of 3.57 percent and 3.66 percent. The first
    was issued on August 18, 1998, at an interest                    installment of $726,000 was due on October 1,
    rate of 5.49 percent. The outstanding balance                    1993, and thereafter the annual installments are
    was $1,122,000.




                                                                                                                     63
 Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                        September 30, 2006


    $721,000. The      outstanding     balance   was     On June 8, 1998, the Lee County Transportation
    $4,384,000.                                          Facilities entered into an agreement with the
                                                         Florida Department of Transportation to borrow
    On April 17, 2001, the Lee County Water and          $500,000 from the Florida Toll Facilities
    Wastewater System entered into an agreement          Revolving Trust Fund. All interest earned on
    with the Florida Department of Environmental         the loan proceeds was repaid to the Trust Fund
    Protection to borrow up to $4,956,000 at an          on September 22, 1999. The loan has been
    interest rate of 3.08 percent. To date the County    expended on the Westerly Corridor Extension
    has received $3,278,000 in disbursements from        project. The interest free loan is to be repaid in
    this loan. The outstanding balance also includes     six annual installments of $83,000 beginning in
    capitalized interest and service fees of $577,000.   fiscal year 2002 through 2007. The outstanding
    The 20 semiannual loan payments will                 balance was $81,000.
    commence on July 15, 2007, and semiannually
    thereafter on January 15 and July 15 of each year    On April 20, 1999, the Lee County
    until all amounts due have been fully paid. The      Transportation Facilities entered into an
    outstanding balance was $3,855,000.                  agreement with the Florida Department of
                                                         Transportation to borrow $1,000,000 from the
    On June 15, 2005, the Lee County Water and           Florida Toll Facilities Revolving Trust Fund. All
    Wastewater System entered into an agreement          interest earned on the loan proceeds was repaid
    with the Florida Department of Environmental         to the Trust Fund on September 22, 1999. The
    Protection to borrow $3,493,000 at an interest       loan has been expended on the Westerly
    rate of 2.67 percent for the construction of the     Corridor Extension project. The interest free
    North Lee County Water Treatment Plant. The          loan is to be repaid in annual installments
    agreement was amended to authorize the               beginning in fiscal year 2005 through 2009. The
    borrowing of an additional $6,156,000 at an          outstanding balance was $491,000.
    interest rate of 2.58 percent. To date the County
    has received $9,375,000 in disbursements from        On April 20, 2001, the Lee County
    this loan. The outstanding balance also includes     Transportation Facilities entered into an
    capitalized interest and service fees of $345,000.   agreement with the Florida Department of
    The 40 semiannual loan payments will                 Transportation to borrow $6,000,000 from the
    commence on July 15, 2008, and semiannually          State Infrastructure Bank (SIB). The loan has
    thereafter on January 15 and July 15 of each year    been procured for the extension of Veteran’s
    until all amounts due have been fully paid. The      Memorial Parkway. This interest free loan is to
    outstanding balance was $9,720,000.                  be repaid in annual installments beginning in
                                                         fiscal year 2002 through 2007. The outstanding
Florida Department of Transportation                     balance was $1,407,000.

    On June 11, 1997, the Lee County Transportation      On April 30, 2002, the Lee County
    Facilities entered into an agreement with the        Transportation Facilities entered into an
    Florida Department of Transportation to borrow       agreement with the Florida Department of
    $4,000,000 from the Florida Toll Facilities          Transportation to borrow $1,500,000 from the
    Revolving Trust Fund. All interest earned on the     Florida Toll Facilities Revolving Trust Fund.
    loan proceeds was repaid to the Trust Fund on        The loan has been expended on the design of the
    September 22, 1999. The loan has been expended       Cape Coral and Sanibel Toll Facilities
    on the Midpoint Corridor Extension II project.       Rehabilitation projects. The interest free loan is
    The interest free loan is to be repaid in annual     to be repaid in five annual installments of
    installments beginning in fiscal year 2002           $300,000 beginning in fiscal year 2006 through
    through 2008. The outstanding balance was            2010. The outstanding balance is $1,200,000.
    $760,000.




  64
                                                                                    Lee County, Florida
                                            Lee County, Florida
                                  NOTES TO THE FINANCIAL STATEMENTS
                                            September 30, 2006


    On January 22, 2003, the Lee County                                On July 25, 2005, the Lee County Transit
    Transportation Facilities entered into an                          Division entered into an agreement with the
    agreement with the Florida Department of                           Florida Department of Transportation to borrow
    Transportation to borrow $1,500,000 from the                        $3,000,000 from the State Infrastructure Bank
    Florida Toll Facilities Revolving Trust Fund.                      (SIB). The loan has been procured for the
    The loan has been expended on the design of                        development of a new transit facility. This
    Sanibel Bridge replacement spans B and C. The                      interest free loan is to be repaid in five annual
    interest free loan is to be repaid in three annual                 installments beginning in fiscal year 2008
    installments of $500,000 beginning in fiscal year                  through 2012. The outstanding balance was
    2008 through 2010. The outstanding balance is                      $3,000,000.
    $1,500,000.
                                                                       On June 29, 2006, the Lee County Transportation
    On December 26, 2003, the Lee County                               Facilities entered into an agreement with the
    Transportation Facilities entered into an                          Florida Department of Transportation to borrow
    agreement with the Florida Department of                           $1,500,000 from the Florida Toll Facilities
    Transportation to borrow $1,500,000 from the                       Revolving Trust Fund.        The loan will be
    Florida Toll Facilities Revolving Trust Fund.                      expended on the design of the Colonial
    The loan has been expended on the design of                        Boulevard elevated expressway. The interest
    span A of the Sanibel Bridge. The interest free                    free loan is to be repaid in three annual
    loan is to be repaid in five annual installments of                installments of $500,000 beginning in fiscal year
    $300,000 beginning in fiscal year 2009 through                     2013 through 2015. The outstanding balance is
    2013. The outstanding balance is $1,500,000.                       $1,500,000.


The annual debt service requirements for notes payable at September 30, 2006, were as follows (dollars in
thousands):

                          Governmental                        Business-type
                            Activities                          Activities                             Total
  Fiscal Year(s)      Principal          Interest         Principal           Interest     Principal           Interest
      2007               $1,004             $157            $3,275               $219        $4,279               $376
      2008                 605               105             2,841                378         3,446                483
      2009                 266                72             3,192                465         3,458                537
      2010                 258                58             3,076                423         3,334                481
      2011                 258                43             2,321                378         2,579                421
    2012-2016              490                59             8,277              1,254         8,767              1,313
    2017-2021               14                 1             2,690                671         2,704                672
    2022-2026                                                2,810                326         2,810                326
    2027-2031                                                  916                 24           916                 24
                         $2,895             $495           $29,398             $4,138       $32,293             $4,633


Other Obligations
                                                                  accounted for in an internal service fund, it has been
                                                                  categorized in the governmental activities on the
Self-Insurance Claims Payable
                                                                  government-wide Statement of Net Assets. The
                                                                  balance at September 30, 2006, consisted of the
S   elf-insurance claims payable are fully described
    in Note VII. Since the self-insurance activity is
                                                                  following (dollars in thousands):




                                                                                                                          65
  Lee County, Florida
                                          Lee County, Florida
                                NOTES TO THE FINANCIAL STATEMENTS
                                          September 30, 2006


Self-insurance group health & dental         $3,348
Sheriff Internal Service Fund                 1,693
Self-insurance general liability              9,953
Total self-insurance claims payable         $14,994



Arbitrage Rebate Payable


A    ny excess interest earnings on tax-exempt bond
     proceeds must be remitted to the federal
government in five-year intervals. Even though a
payment may not be required until several years
into the future, the liability is recognized as it is
probable and measurable. The liability is recorded
in both governmental and business-type activities.
The total obligations as of September 30, 2006, were
as follows (dollars in thousands):

     Governmental Activities                    $4
     Business-type Activities                  666
            Total                             $670




66
                                                                    Lee County, Florida
                                                 Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                                  September 30, 2006




Long-Term Debt (continued)
Changes in Long-Term Debt
Changes in bonded and other indebtedness of the County for the year ended September 30, 2006, were as follows (dollars
in thousands):

                                           Beginning                                        Ending         Due Within
                                            Balance        Additions       Reductions       Balance         One Year
Governmental Activities:
Bonds payable:
   Revenue bonds                             $247,266                         ($18,101)       $229,165         $18,297
   Special assessment bonds                       475                             (475)
   Less/plus deferred amounts:
       Unamort discount/premium                 2,946                             (452)          2,494             390
       Unamortized loss/gain                   (2,151)                             626          (1,525)           (537)
           Total Bonds Payable                248,536                0         (18,402)        230,134          18,150
Variable debt                                     585           $1,365            (159)          1,791              42
Notes payable                                   4,622                           (1,727)          2,895           1,004
Accreted interest payable                       6,160             721                            6,881
Other:
   Self-insurance claims payable                14,591          45,914         (45,511)         14,994           6,143
   Arbitrage rebate payable                         11                              (7)              4
Capital leases                                      57                             (52)              5               5
Compensated absences                            18,619          15,915         (13,824)         20,710             686
       Total governmental activity
         long-term liabilities               $293,181          $63,915        ($79,682)       $277,414         $26,030
Business-Type Activities:
Port Authority
Bonds payable:
   Revenue bonds                             $396,030          $37,805        ($44,035)       $389,800
   Less/plus deferred amounts:
       Unamort discount/premium                (4,849)             990           1,220          (2,639)
       Unamortized loss/gain                   (1,468)          (3,654)            575          (4,547)
          Total Bonds Payable                 389,713           35,141         (42,240)        382,614               0
Variable debt                                   3,370            6,630            (230)          9,770            $475
Arbitrage rebate payable                          688               63             (85)            666              63
Compensated absences                              898            1,824          (1,893)            829             563
       Total Port Authority
        long-term liabilities                $394,669          $43,658        ($44,448)       $393,879          $1,101




                                                                                                                 67
       Lee County, Florida
                                             Lee County, Florida
                                 NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2006



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                          $192,915                      ($5,260)    $187,655         $5,485
   Less/plus deferred amounts:
      Unamort discount/premium               2,327                         (137)       2,190            164
      Unamortized loss/gain                 (9,062)                         752       (8,310)          (786)
          Total Bonds Payable              186,180              0        (4,645)     181,535          4,863
Notes payable                                8,665         $9,835          (541)      17,959            727
Compensated absences                           726          1,087          (880)         933            102
      Total Water and Wastewater
        long-term liabilities             $195,571        $10,922       ($6,066)    $200,427         $5,692
Transportation Facilities
Bonds payable:
   Revenue bonds                          $210,935                      ($5,750)    $205,185         $6,585
   Less/plus deferred amounts:
      Unamort discount/premium               8,448                         (766)       7,682            750
      Unamortized loss/gain                (16,356)                       1,745      (14,611)        (1,645)
          Total Bonds Payable              203,027              0        (4,771)     198,256          5,690
Variable debt                               16,400        $14,000        (4,000)      26,400
Notes payable                                9,563          1,500        (2,624)       8,439          2,548
Compensated absences                           296            372          (348)         320             21
      Total Transportation Facilities
        long-term liabilities             $229,286        $15,872      ($11,743)    $233,415         $8,259




       68
                                                                                    Lee County, Florida
                                             Lee County, Florida
                                  NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2006



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                          $135,415       $105,045       ($36,455)    $204,005       $12,040
   Less/plus deferred amounts:
      Unamort discount/premium               3,167          2,366         (2,920)       2,613           767
      Unamortized loss/gain                 (4,397)        (1,104)         1,321       (4,180)       (1,099)
           Total Bonds Payable             134,185        106,307        (38,054)     202,438        11,708
Landfill closure & postclosure costs         5,297          2,892                       8,189
Capital leases                                 126                           (47)          79              49
Compensated absences                           156           209            (167)         198              18
      Total Solid Waste
         long-term liabilities            $139,764       $109,408       ($38,268)    $210,904       $11,775

Other Non-Major - Transit
Notes Payable                               $3,000                                     $3,000
Compensated absences                           481          $687           ($682)         486             $34
      Total Other Non-Major
        long-term liabilities               $3,481          $687           ($682)      $3,486             $34


Total Business-Type Activities
Bonds payable:
   Revenue bonds                          $935,295       $142,850       ($91,500)    $986,645       $24,110
   Less/plus deferred amounts:
       Unamort discount/premium              9,093          3,356         (2,603)       9,846         1,681
       Unamortized loss/gain               (31,283)        (4,758)         4,393      (31,648)       (3,530)
           Total Bonds Payable             913,105        141,448        (89,710)     964,843        22,261
Variable Debt                               19,770         20,630         (4,230)      36,170           475
Notes payable                               21,228         11,335         (3,165)      29,398         3,275
Arbitrage rebate payable                       688             63            (85)         666            63
Landfill closure & postclosure costs         5,297          2,892              0        8,189             0
Capital Leases                                 126              0            (47)          79            49
Compensated absences                         2,557          4,179         (3,970)       2,766           738
       Total business-type activity
         long-term liabilities            $962,771       $180,547      ($101,207)   $1,042,111      $26,861




                                                                                                     69
       Lee County, Florida
                                               Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                                 September 30, 2006




     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 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, 2006.

                                                                                      Southwest Florida
                                                                                     International Airport
     Condensed Statement of Net Assets
     Assets
        Current assets                                                                         $61,629
        Restricted assets                                                                       39,224
        Capital assets                                                                         617,427
        Other assets                                                                             6,144
             Total assets                                                                      724,424
     Liabilities
        Current liabilities                                                                     10,265
        Current liabilities payable from restricted assets                                       4,920
        Noncurrent liabilities                                                                 347,680
             Total liabilities                                                                 362,865
     Net assets
        Invested in capital assets, net of related debt                                        307,612
        Restricted                                                                               1,227
        Unrestricted                                                                            52,720
             Total net assets                                                                 $361,559
     Condensed Statement of Revenues, Expenses, and Changes in Net Assets
     Operating revenues
       User fees                                                                               $38,250
       Rentals                                                                                   1,682
       Concessions                                                                              35,931
       Miscellaneous                                                                               228
       Less: Rebates                                                                            (2,031)
            Total operating revenues                                                            74,060
     Operating expenses
       Depreciation                                                                             15,302
       Other operating expenses                                                                 46,907
            Total operating expenses                                                            62,209
     Operating income (loss)                                                                    11,851
     Non-operating revenues (expenses)
       Investment earnings                                                                       4,416
       Interest expense                                                                        (21,163)
       Other non-operating                                                                       4,231
            Total non-operating revenues (expenses)                                           ($12,516)


70
                                                                                         Lee County, Florida
                                             Lee County, Florida
                           NOTES TO THE FINANCIAL STATEMENTS
                                              September 30, 2006




  Segment Information- Port Authority- continued
                                                                    Southwest Florida
                                                                   International Airport

  Capital Contributions                                                      $8,617
  Transfers                                                                  (1,893)
  Change in net assets                                                        6,059
  Beginning net assets                                                      355,500
  Ending net assets                                                        $361,559


  Condensed Statement of Cash Flows
  Net cash provided (used) by:
  Operating activities                                                      $27,876
  Noncapital financing activities                                              (521)
  Capital and related financing activities                                  (40,911)
  Investing activities                                                        3,623
     Net increase (decrease)                                                 (9,933)
  Beginning cash and cash equivalents                                        73,695
  Ending cash and cash equivalents                                          $63,762




                                                                                           71
Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                               September 30, 2006


NOTE VII. OTHER INFORMATION                                of the participants in the self-insurance fund. In
                                                           fiscal year 2006, the County contributed $2,764,000
                                                           towards the retirees’ healthcare.
Retirement Plan
Plan Description and Provisions                            Risk Management


T    he County participates in the Florida Retirement
     System (FRS), a cost sharing, multiple-employer,
                                                           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
public employee retirement system, which covers
substantially all of the full-time and part-time           to employees, and natural disasters.           After
employees. The FRS is noncontributory and is               September 30, 1989, and prior to October 1, 1987, the
totally administered by the State of Florida. Benefits     Board established a Self-Insured Retention (SIR)
under the plan vest after six years of service.            program (an internal service fund) to account for
Employees who retire at or after age 62 (age 55 for        and finance its uninsured risks of loss. Under this
special risk) or 30 years of service (25 years for         program, the SIR provides coverage in the areas
special risk), with six years of credited service, are     mentioned below.           The County purchases
entitled to an annual retirement benefit, payable          commercial insurance for claims in excess of
monthly for life. The FRS also provides for early          coverage provided by the fund and for all other
retirement at reduced benefits and death and               risks of loss. Settled claims have not exceeded this
disability benefits. These benefit provisions and all      commercial coverage in any of the past three fiscal
other requirements are established by Chapters 112         years. As a result there was no reduction in
and 121, Florida Statutes.                                 insurance coverage.

Pension costs for the County as required and               The County remains liable for open claims asserted
defined by State statute ranged between 10 percent         prior to October 1, 1987, and after September 30,
and 21 percent of gross salaries for fiscal year 2006.     1989, covered under the existing self-insurance
For fiscal years ended September 30, 2006, 2005, and       program, limited to the established annual loss fund
2004, the County contributed 100 percent of the            limits for unasserted claims for a period, generally
required     contributions.   These     contributions      four years after date of occurrence. Claims that are
aggregated $22 million, $18 million, and $17 million,      filed or settled after the end of the fiscal year of
respectively, which represents 10 percent, 9 percent,      occurrence are charged to, and accumulated within,
and 9 percent of covered payroll.                          the year of occurrence. Consequently, the County’s
                                                           total liability within any one year is limited to the
A copy of the FRS’s June 30, 2006 annual report can        annual loss fund limits.
be obtained by writing to the Division of Retirement,
PO Box 9000, Tallahassee, Florida 32315-9000, or by        From October 1, 1987, to September 30, 1989, the
phoning (850) 488-5706.                                    County was a member of the Southwest Florida
                                                           Intergovernmental Risk Management Association
                                                           (SFIRMA), a local government liability risk pool.
Other Post Employment Benefits                             SFIRMA administered insurance activities similar to
                                                           those provided by the Board’s SIR program.
The County provides post retirement health care            SFIRMA absorbed losses up to a specific amount
benefits in accordance with Chapter 110.123, Florida       annually and purchased excess and other specific
Statutes, to all employees who retire from the             coverages from third-party carriers.
County. Currently, approximately 535 retirees meet
the eligibility requirements. The County pays 50           The County remains liable for estimated additional
percent of the premium cost for the retiree to             assessments of $346,000 arising from its years of
participate in the Board’s self-insurance fund. The        membership in SFIRMA, which has changed its
retirees currently make up approximately 13 percent        name to Public Risk Management of Florida.




 72
                                                                                        Lee County, Florida
                                          Lee County, Florida
                                NOTES TO THE FINANCIAL STATEMENTS
                                                  September 30, 2006



Additionally, the Board and the Sheriff maintain                  At September 30, 2006, the County had recorded
self-insurance internal service funds to administer               liabilities equal to the amounts reflected as reserved
insurance activities relating to countywide employee              and unasserted claims.        These amounts were
group health and dental programs. The County                      calculated by the third-party self-insurance
absorbs losses related to these programs up to                    program’s underwriters and actuaries, based on
aggregate annual loss fund limits. Excess and other               industry standards. These liabilities are subject to
specific coverages are purchased from third-party                 adjustments in future years, which would be
carriers. Funding for these programs is generated                 recorded as claim expenses when they are estimated.
by charges to the operating departments based on
management’s annual estimates of claim loss
funding and administration/operating costs.

The County’s SIR program and excess insurance provides coverage for all County 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 fund’s claims liability for the years ended September 30, 2006 and 2005, 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:
2006                                               $5,011             $42,196             ($42,166)        $5,041
2005                                                4,655               35,211             ( 34,855)        5,011
Self-Insurance General Liability:
2006                                               $9,580               $3,719              ($3,346)       $9,953
2005                                                8,452                7,177              ( 6,049)        9,580

                                                                  care of $7,604,000 as the remaining estimated
Landfill Closure and Postclosure Care                             capacity is filled. This amount is based on what it
                                                                  presently would cost to perform all closure and
Liability                                                         postclosure care at September 30, 2006. The Class I
                                                                  landfill facility configuration, as currently planned,

T   he Florida Department of Environmental
    Protection (FDEP) requires the County to place a
final cover on its landfill site when it stops accepting
                                                                  is expected to provide at least 18 years of disposal
                                                                  capacity for Lee and Hendry Counties. Actual costs
                                                                  may be higher due to inflation, changes in
waste and to perform certain maintenance and                      technology, or changes in regulations.
monitoring functions at the site for thirty years after
closure. Although closure and postclosure care costs              The County is required by FDEP to annually
will be paid only near or after the date that the                 calculate closure and postclosure costs, and to
landfill stops accepting waste, the County reports a              provide proof of its capacity to finance closure care.
portion of these closure and postclosure care costs as            The County is in compliance with these
an operating expense based on landfill capacity used              requirements, and at September 30, 2006, cash and
as of the balance sheet date. The amount reported as              investments of $2,680,000 are held for these
landfill closure and postclosure care liability                   purposes. These are reported as restricted assets on
represents the cumulative portion of total estimated              the balance sheet.
closure and postclosure care as of September 30,
2006, based on the use of 52 percent of the capacity
of the 38 acre active disposal area at the landfill. The
County will recognize the September 30, 2006,
remaining estimated cost of closure and postclosure




                                                                                                                        73
  Lee County, Florida
                                        Lee County, Florida
                              NOTES TO THE FINANCIAL STATEMENTS
                                                September 30, 2006


Commitments and Contingencies                                                                 Amount
                                                            Year ending September 30:
                                                               2007                           $ 5,122,086
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
                                                               2008                             5,374,615
                                                                                              $10,496,701
may result in disallowed expense amounts. These
amounts constitute a contingent liability of the            For the year ended September 30, 2006, the Sheriff
County.      The County does not believe any                paid $5,800,069 for inmate medical services and
contingent liabilities to be material.                      $2,557,673 for food services at its detention facilities.

The County currently prepares rebate calculations           Litigation
on all debt subject to arbitrage per the United States
department of the Treasury Regulations, Section
1.148, and the Internal Revenue Service Code of
1986. Rebates, if any, are paid to the Internal
                                                            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
Revenue Service every fifth year after the year of          this time to predict the outcome of the lawsuits or
issuance. Within the five-year period, any positive         the exact amount of costs and/or potential recovery.
arbitrage (liability) can be offset by any negative         The County plans to contest these matters unless
arbitrage (non-liability). These rebates constitute a       settled. The County believes the outcome of these
contingent liability of the County. The County does         lawsuits will not have a material effect on the
not believe any contingent liabilities to be material.      financial statements.

On May 13, 2005, the County rebated to the U.S.             On January 12, 2004, Save Our Bay, Inc. filed suit
Treasury the amount of $9,504,105 in respect of the         against Lee County in the Circuit Court of the
outstanding Airport Revenue Bonds Series 2000A              Twentieth Judicial Circuit in and for Lee County,
and Series 2000B, which amount represents 90                Florida (the “Bay Litigation”) seeking, among other
percent of the rebate as then calculated. Subsequent        things, an order requiring the County to repair and
to such rebate, an internal County staff review             rehabilitate the Sanibel Causeway and a reduction in
raised concerns that the County may have                    the tolls collected on the Sanibel Causeway. On
underpaid the rebate amount. Accordingly, the               September 24, 2004, the Circuit Court granted the
County engaged an independent rebate consultant,            County’s Motion to Dismiss all counts of the Bay
Causey, Demgen & Moore, Inc., to recalculate the            Litigation. On October 5, 2004, Save Our Bay, Inc.
rebate due with respect to the Series 2000A and             filed its Notice of Appeal to the Florida Second
Series 2000B Bonds. As a result of this recalculation,      District Court of Appeals and oral arguments were
the County made a supplemental rebate payment to            heard in May 2005.       The lawsuit was voluntarily
the U.S. Treasury of $519,000 plus $48,000 of interest.     dismissed by the plaintiff in April 2006.

The Sheriff has agreements with a corporation for           A lawsuit has been filed against Lee County by 53
the provision of inmate medical services and food           property owners on Pine Island who claim that an
services at its detention facilities. The contracts are     amendment to the Lee County Comprehensive Plan
paid 100% by the Sheriff through its annual budget.         applicable to Pine Island has reduced allowable
The food services are based on a cost per meal per          densities to such a degree that their property values
inmate basis, and the future contract commitment is         have been destroyed. (The amendment changes
estimated at approximately $1,900,000 per year              allowable densities for parts of Pine Island from one
based on the results of the current year. No liability      unit per acre to one unit per ten acres, but allows
is recorded in the fund statements, as any future           reclamation of densities of up to 70% of the original
commitment will be budgeted and paid from the               if the property owner restores native habitat.) Count
subsequent year’s budget.              The payment          I of the Complaint claims a violation of substantive
requirements for inmate medical services are as             due process and Count II claims inverse
follows:                                                    condemnation. The County has filed a motion to
                                                            dismiss which is set for hearing on Monday, March
                                                            5, 2007. The Complaint states no amount of
                                                            damages, but attaches as an exhibit a report
 74
                                                                                           Lee County, Florida
                                       Lee County, Florida
                             NOTES TO THE FINANCIAL STATEMENTS
                                             September 30, 2006


prepared for the County during the amendment             NOTE VIII. RESTATEMENT
process that estimates the total economic impact of
the amendment at $61 million.                            In prior years the County recorded impact fee
                                                         revenues as unearned revenues until they were
Schwab Materials, Inc. filed suit for $18.5 million      expended or the refund period expired, whichever
under Chapter 70.001, Florida Statutes, arising from     came first. Governmental Accounting Standards
the denial of a rezoning to permit limerock mining       Board Statement Number 33, Accounting and
adjacent to a residential community. Lee County has      Financial Reporting for Nonexchange Transactions
denied liability and requested a trial that is           (GASB 33), addresses the timing of revenue
scheduled for June 2007.                                 recognition.       GASB 33 states that revenue
                                                         recognition for imposed nonexchange transactions,
Subsequent Events                                        which impact fees are classified as, should be when
                                                         there is an enforceable legal claim, or when the
                                                         resources are received, whichever is first. Therefore,
O     n October 19, 2006, the County issued Capital
      Revenue Bonds, Series 2006, in the amount of
$63,605,000 to finance the construction of a County
                                                         the County has determined an error was made in
                                                         prior years in the method of recording impact fee
jail complex and evidence building.                      revenue. As a result of this error, the beginning net
                                                         assets of the governmental activities and the
                                                         beginning fund balances of the road impact fees and
                                                         other governmental funds were understated. The
                                                         effects of this adjustment on the previously reported
                                                         financial statement amounts were as follow (dollars
                                                         in thousands):


                                                                                                  Other
                                                         Governmental        Road Impact       Governmental
                                                           Activities         Fee Funds           Funds

Net assets/fund balances as of September 30, 2005,
    as previously reported                                 $1,390,139           $22,261            $209,908

Adjustment                                                    101,957            83,676              18,281

Net assets/fund balances as of September 30, 2005,
    as restated                                            $1,492,096         $105,937             $228,189


Change in net assets/fund balances for the year ended
   September 30, 2005, as previously reported                $191,968             $417              ($2,970)

Adjustment                                                     42,819           38,906               3,913

Change in net assets/fund balances for the year ended
   September 30, 2005, as corrected                          $234,787          $39,323                $943




                                                                                                             75
  Lee County, Florida
     This page is intentionally blank.




76
                                         Lee County, Florida
      Supplemental Financial Information




                                           77
Lee County, Florida
     This page is intentionally blank.




78
                                         Lee County, Florida
                      General Fund


                                     79
Lee County, Florida
                                       Lee County, Florida
                              COMBINING SCHEDULE - BALANCE SHEET
                                        GENERAL FUND
                                     As of September 30, 2006
                                      (amounts expressed in thousands)


                                        Board of
                                         County          Clerk of        Property
                                      Commissioners    Circuit Court     Appraiser           Sheriff
ASSETS
Cash and cash equivalents                  $141,751         $12,305          $1,219             $5,154
Receivables (net)
 Accounts                                     7,284              66                                    83
 Accrued interest                             2,229
Due from other funds                         27,157              28                                221
Due from other governments                    4,294             143
Inventory                                       186
Prepaids                                        159               8
Advances to other funds                      45,960
 Total assets                               229,020          12,550           1,219               5,458

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable               4,956             899              90                 815
 Accrued liabilities                          1,480             137             103               2,531
 Due to other funds                               1          11,015             884               2,112
 Due to other governments                     1,862             262             142
 Deposits and overbids                       20,807             236
 Unearned revenues                               83               1
 Other                                           43
   Total liabilities                         29,232          12,550           1,219               5,458
Fund Balances:
 Reserved for advances                       45,960
 Reserved for inventory                         186
 Unreserved, designated for:
   Capital and maintenance projects          42,762
   Unfunded other post employment
      benefits                               18,000
   Roads revolving loan program              31,000
   Unfunded mandates                          2,000
   Economic incentives                        1,500
   Fort Myers Beach transportation loan       1,000
 Unreserved, undesignated                    57,380
   Total fund balances                      199,788               0               0                  0
    Total liabilities and fund balances    $229,020         $12,550          $1,219             $5,458


See accompanying independent auditors' report.                                              (continued)




80
                                                                                     Lee County, Florida
                                       Lee County, Florida
                              COMBINING SCHEDULE - BALANCE SHEET
                                        GENERAL FUND
                                     As of September 30, 2006
                                      (amounts expressed in thousands)



                                          Supervisor       Tax
                                          of Elections   Collector       Eliminations    Total
ASSETS
Cash and cash equivalents                         $850      $14,850                      $176,129
Receivables (net)
 Accounts                                                            2                      7,435
 Accrued interest                                                                           2,229
Due from other funds                                                         $(24,122)      3,284
Due from other governments                                           5                      4,442
Inventory                                                                                     186
Prepaids                                            29                                        196
Advances to other funds                                                                    45,960
 Total assets                                      879       14,857           (24,122)    239,861

LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                     39          717                         7,516
 Accrued liabilities                                46          265                         4,562
 Due to other funds                                652       12,115           (24,122)      2,657
 Due to other governments                                     1,760                         4,026
 Deposits and overbids                                                                     21,043
 Unearned revenues                                 142                                        226
 Other                                                                                         43
   Total liabilities                               879       14,857           (24,122)     40,073
Fund Balances:
 Reserved for advances                                                                     45,960
 Reserved for inventory                                                                       186
 Unreserved, designated for:
   Capital and maintenance projects                                                        42,762
   Unfunded other post employment
      benefits                                                                             18,000
   Roads revolving loan program                                                            31,000
   Unfunded mandates                                                                        2,000
   Economic incentives                                                                      1,500
   Fort Myers Beach transportation loan                                                     1,000
 Unreserved, undesignated                                                                  57,380
   Total fund balances                               0            0                 0     199,788
    Total liabilities and fund balances           $879      $14,857          $(24,122)   $239,861




                                                                                                 81
Lee County, Florida
                                          Lee County, Florida
                         COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
                                AND CHANGES IN FUND BALANCES
                                           GENERAL FUND
                                 For the Year Ended September 30, 2006
                                      (amounts expressed in thousands)



                                      Board of
                                       County           Clerk of         Property
                                    Commissioners     Circuit Court      Appraiser          Sheriff
REVENUES
 Taxes                                    $251,656
 Licenses and permits                        1,400
 Intergovernmental                          58,353            $566           $1,145
 Charges for services                       36,513          14,249              328
 Fines and forfeitures                         792
 Miscellaneous                              20,520           1,026               87             $2,165
    Total revenues                         369,234          15,841            1,560              2,165
EXPENDITURES
 Current
  General government                        52,291          11,637            8,054              3,128
  Public safety                             47,139                                             117,197
  Physical environment                       6,763
  Transportation                             2,244
  Economic environment                       4,008
  Human services                            14,588
  Culture and recreation                    14,615
 Capital outlay
  General government                           867             741              566
  Public safety                              1,244                                                5,567
  Physical environment                         279
  Transportation                               345
  Economic environment                          18
  Human services                                 1
  Culture and recreation                     2,271
 Debt service
  Principal retirement                          53
  Interest and fiscal charges                    9
   Total expenditures                      146,735          12,378            8,620            125,892
Excess (deficiencies) of revenues
 over (under) expenditures                 222,499            3,463           (7,060)          (123,727)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                               51,370            7,293           7,928            124,954
 Transfers out                            (218,480)         (10,756)           (877)            (1,227)
 Insurance proceeds                                                               9
    Total other financing sources
    and (uses)                            (167,110)          (3,463)          7,060            123,727
Net change in fund balances                 55,389                0                  0                 0
Fund balances - beginning                  144,399                0                  0                 0
Fund balances - ending                    $199,788              $0               $0                   $0




See accompanying independent auditors' report.                                              (continued)

82
                                                                                     Lee County, Florida
                                          Lee County, Florida
                         COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
                                AND CHANGES IN FUND BALANCES
                                           GENERAL FUND
                                 For the Year Ended September 30, 2006
                                    (amounts expressed in thousands)



                                    Supervisor         Tax
                                    of Elections     Collector         Eliminations    Total
REVENUES
 Taxes                                                                                  $251,656
 Licenses and permits                                                                      1,400
 Intergovernmental                          $134                                          60,198
 Charges for services                         65         $25,405           $(14,632)      61,928
 Fines and forfeitures                                                                       792
 Miscellaneous                                75             919                          24,792
    Total revenues                           274          26,324            (14,632)     400,766
EXPENDITURES
 Current
  General government                       4,294          14,093            (14,632)      78,865
  Public safety                                                                          164,336
  Physical environment                                                                     6,763
  Transportation                                                                           2,244
  Economic environment                                                                     4,008
  Human services                                                                          14,588
  Culture and recreation                                                                  14,615
 Capital outlay
  General government                         561            951                            3,686
  Public safety                                                                            6,811
  Physical environment                                                                       279
  Transportation                                                                             345
  Economic environment                                                                        18
  Human services                                                                               1
  Culture and recreation                                                                   2,271
 Debt service
  Principal retirement                                                                        53
  Interest and fiscal charges                                                                  9
   Total expenditures                      4,855          15,044            (14,632)     298,892
Excess (deficiencies) of revenues
 over (under) expenditures                (4,581)         11,280                  0      101,874
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                              5,148                           (168,541)      28,152
 Transfers out                              (652)        (11,280)           168,541      (74,731)
 Insurance proceeds                           85                                              94
    Total other financing sources
    and (uses)                             4,581         (11,280)                 0      (46,485)
Net change in fund balances                    0                 0                0       55,389
Fund balances - beginning                      0                 0                0      144,399
Fund balances - ending                        $0             $0                  $0     $199,788




                                                                                                83
Lee County, Florida
                                                    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, 2006
                                             (amounts expressed in thousands)


                                                 Non - GAAP
                                               Board of County                                       Non - GAAP
                                               Commissioners           Clerk of Circuit Court    Property Appraiser
                                              Final                      Final                    Final
                                             Budget       Actual        Budget       Actual      Budget      Actual
 REVENUES
  Taxes                                      $243,773      $251,656
  Licenses and permits                            802         1,400
  Intergovernmental                            76,677        58,353         $356        $565      $1,288        $1,145
  Charges for services                         22,196        29,241        9,005      14,249                       109
  Fines and forfeitures                            17           792
  Miscellaneous                                 8,345        20,422          452       1,027                        87
   Total revenues                             351,810       361,864        9,813      15,841       1,288         1,341

 EXPENDITURES
  Current
   General government                          63,735        52,310       12,397      11,637       8,654         7,835
   Public safety                               46,648        40,694
   Physical environment                        31,862         6,763
   Transportation                              15,520         2,244
   Economic environment                         5,850         4,008
   Human services                              16,118        14,588
   Culture and recreation                      18,640        14,615
  Capital outlay
   General government                             865           865         791          741         562          566
   Public safety                                2,978         1,244
   Physical environment                           289           279
  Transporation                                   345           345
   Economic environment                            24            18
   Human services                                   1             1
   Culture and recreation                       2,286         2,265
  Debt service
   Principal retirement                            62            53
   Interest and fiscal charges                      9             9
    Total expenditures                        205,232       140,301       13,188      12,378       9,216         8,401

      Excess (deficiencies) of revenues
       over (under) expenditures              146,578       221,563       (3,375)      3,463      (7,928)       (7,060)

 OTHER FINANCING SOURCES (USES)
  Transfers in                            40,557             52,620        7,293       7,293       7,928         7,928
  Transfers out                         (268,466)          (259,979)      (3,918)    (10,756)                     (877)
  Insurance proceeds                                                                                                 9
   Total other financing sources (uses) (227,909)          (207,359)       3,375       (3,463)     7,928         7,060

     Excess (deficiencies) of revenues and
      other financing sources over (under)
      expenditures and other financing use    (81,331)       14,204            0            0          0              0

 Fund balances - beginning                    137,677       137,700             0           0          0              0

 Fund balances - ending                       $56,346      $151,904          $0           $0          $0            $0

 See accompanying independent auditors' report.                                                             (continued)

84
                                                                                                     Lee County, Florida
                                                     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, 2006
                                            (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                                                                        $134
  Charges for services                                                                       65       $25,143       $25,405
  Fines and forfeitures
  Miscellaneous                              $1,448          $2,165                          75           716           919
   Total revenues                             1,448           2,165               0         274        25,859        26,324

 EXPENDITURES
  Current
   General government                         3,128           3,128         $4,381         4,294       15,624        14,093
   Public safety                            117,527         117,197
   Physical environment
   Transportation
   Economic environment
   Human services
   Culture and recreation
  Capital outlay
   General government                                                          767          561         1,397          951
   Public safety                              5,747           5,567
   Physical environment
   Transportation
   Economic environment
   Human services
   Culture and recreation
  Debt service
   Principal retirement
   Interest and fiscal charges
    Total expenditures                      126,402         125,892          5,148         4,855       17,021        15,044

    Excess (deficiencies) of revenues
     over (under) expenditures             (124,954)      (123,727)          (5,148)      (4,581)       8,838       11,280

 OTHER FINANCING SOURCES (USES)
  Transfers in                              124,954         124,954          5,148        5,148
  Transfers out                                              (1,227)                       (652)       (8,838)      (11,280)
  Insurance proceeds                                                                         85
   Total other financing sources (uses)     124,954         123,727          5,148        4,581        (8,838)      (11,280)

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

 Fund balances - beginning                        0                  0            0               0         0                0

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

                                                                                                                 (continued)

                                                                                                                                 85
Lee County, Florida
                                               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, 2006
                                        (amounts expressed in thousands)


                                                                                       Total
                                                                                                  Variance with
                                                   Eliminations                                    Final Budget
                                                Final                     Final                      Positive
                                               Budget       Actual       Budget       Actual        (Negative)
     REVENUES
      Taxes                                                              $243,773     $251,656         $7,883
      Licenses and permits                                                    802        1,400            598
      Intergovernmental                                                    78,321       60,197        (18,124)
      Charges for services                                 ($14,632)       56,344       54,437         (1,907)
      Fines and forfeitures                                                    17          792            775
      Miscellaneous                                                        10,961       24,695         13,734
       Total revenues                               $0      (14,632)      390,218      393,177          2,959

     EXPENDITURES
      Current
       General government                                   (14,632)       107,919      78,665         29,254
       Public safety                                                       164,175     157,891          6,284
       Physical environment                                                 31,862       6,763         25,099
       Transportation                                                       15,520       2,244         13,276
       Economic environment                                                  5,850       4,008          1,842
       Human services                                                       16,118      14,588          1,530
       Culture and recreation                                               18,640      14,615          4,025
      Capital outlay
       General government                                                     4,382      3,684            698
       Public safety                                                          8,725      6,811          1,914
       Physical environment                                                     289        279             10
       Transportation                                                           345        345              0
       Economic environment                                                      24         18              6
       Human services                                                             1          1              0
       Culture and recreation                                                 2,286      2,265             21
      Debt service
       Principal retirement                                                     62          53              9
       Interest and fiscal charges                                               9           9              0
        Total expenditures                           0      (14,632)       376,207     292,239         83,968

        Excess (deficiencies) of revenues
         over (under) expenditures                   0               0      14,011     100,938         86,927

     OTHER FINANCING SOURCES (USES)
      Transfers in                                         (168,541)      185,880       29,402       (156,478)
      Transfers out                                         168,541      (281,222)    (116,230)       164,992
      Insurance proceeds                                                                    94             94
       Total other financing sources (uses)          0               0     (95,342)    (86,734)         8,608

       Excess (deficiencies) of revenues and
        other financing sources over (under)
        expenditures and other financing use         0               0     (81,331)     14,204         95,535

     Fund balances - beginning                       0               0     137,677     137,700             23

     Fund balances - ending                         $0           $0        $56,346    $151,904        $95,558




86
                                                                                                    Lee County, Florida
                      Major Governmental
                                   Funds


                                           87
Lee County, Florida
                               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, 2006
                                    (amounts expressed in thousands)
                                                                                    Variance with
                                                                                    Final Budget
                                                       Final                          Positive
                                                      Budget           Actual        (Negative)
     REVENUES
     Taxes                                              $61,650         $62,491              $841
     Licenses and permits                                   299             423               124
     Intergovernmental                                    5,798           3,047            (2,751)
     Charges for services                                    33              44                11
     Miscellaneous                                        3,131           9,468             6,337
         Total revenues                                  70,911          75,473             4,562

     EXPENDITURES
     Current
      General government                                  2,507           2,505                 2
      Physical environment                                8,209           1,147             7,062
      Transportation
      Culture and recreation                             15,637           4,020           11,617
     Capital Outlay
      General government                                135,247          72,012           63,235
      Physical environment                               23,341           2,065           21,276
      Transportation                                     10,216           2,222            7,994
      Culture and recreation                              9,343           1,992            7,351
     Debt Service
      Principal retirement
      Interest and fiscal charges                            50              45                5
         Total expenditures                             204,550          86,008          118,542
     Excess (deficiencies) of revenues
      over (under) expenditures                        (133,639)         (10,535)        123,104

     OTHER FINANCING SOURCES
     AND (USES)
     Transfers in                                        81,646           69,733          (11,913)
     Transfers out                                      (53,024)         (53,025)              (1)
      Total other financing sources and (uses)           28,622           16,708          (11,914)
     Net change in fund balance                        (105,017)          6,173          111,190
     Fund balance - beginning                           139,105         139,444              339
     Fund balance - ending                              $34,088        $145,617         $111,529


     RECONCILIATION OF BUDGETARY BASIS TO GAAP
      Net change in fund balance, budgetary basis                        $6,173
         Less: Fair market value adjustment                                  117
               Interfund loan                                             (1,500)

      Net change in fund balance                                         $4,790
     See accompanying independent auditors' report.




88
                                                                                    Lee County, Florida
                      Non-Major Governmental
                                       Funds



                                               89
Lee County, Florida
                                 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.

     Community Redevelopment Agency- To account for ad valorem taxes and other financial
     resources that are to be used for redevelopment projects.

     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- To account for SHIP grants.

     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.

     Tourist Development Trust Fund- To account for the five percent tax on rents for temporary
     lodgings. This tax, approved by a voter referendum in 1982, is restricted for promotion of
     tourism and specific projects that have been identified as encouraging tourism such as beach and
     shoreline improvements and the William Hammond Stadium, stadium debt service and
     operations in 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.




90
                                                                                          Lee County, Florida
                      Special Revenue Funds (continued)
    Impact Fees- Community Parks- To account for revenues received from impact fees that are
    restricted to capital improvements for designated community park districts.

    Impact Fees- Regional Parks- To account for revenues received from impact fees that are
    restricted to capital improvements for County regional parks.

    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, and Fort Myers Beach Fire Control 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 and 1996 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.




                                                                                                           91
Lee County, Florida
                         Debt Service Funds (continued)

     Five Cent Local Option Gas Tax Revenue Bonds- To account for payment of the 1995 Bonds.
     Funding is from the five-cent local option gas tax revenue.

     Capital Revenue Bonds- To account for payment of the 1992, 1993B, 1995B, 1997A, 1999A, 2000,
     2003, and 2004 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, sales tax, and special assessment 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.

     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.

     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.


                                       Permanent Fund
     P  ermanent funds are used to report resources that are legally restricted to the extent that only
        earnings, not principal, may be used for purposes that support the reporting government’s
     programs.

     Sheriff’s Claibourne and Foulds Trust- To account for donated assets held by the Sheriff in the
     capacity as trustee. The principal may not be expended in the course of operations. The interest
     on the principal is to be used as a meritorious award to law enforcement officers.




92
                                                                                          Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)


                                                                      Special Revenue Funds
                                                   Municipal
                                                    Service          Special             Law          Community
                                                  Benefit Unit     Assessment        Enforcement     Redevelopment
                                                   Districts        Districts           Trust           Agency

ASSETS
Cash and cash equivalents                               $2,979           $8,824               $219             $11
Cash and cash equivalents with fiscal agent
Investments
Receivables (net)
 Accounts                                                                                        4
 Special assessments                                                      1,770
 Accrued interest                                           22              785                 2
Due from other funds                                        37              282               282
Due from other governments
Inventory
Prepaids
  Total assets                                           3,038           11,661                507              11


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            150              141                                 11
 Accrued liabilities                                         2                6
 Due to other funds                                        280
 Due to other governments                                  605                   3
 Deposits and overbids
 Unearned revenues
 Deferred revenues                                                        1,362
 Advances from other funds                               6,000
   Total liabilities                                     7,037            1,512                  0              11
Fund Balances:
 Reserved for:
   Inventory
   Debt service
 Unreserved , designated for:
   Capital and maintenance projects
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                                (3,999)          10,149               507
   Capital projects funds
   Total fund balances                                  (3,999)          10,149                507               0
Total liabilities and fund balances                     $3,038          $11,661               $507             $11




See accompanying independent auditors' report.                                                          (continued)

                                                                                                             93
     Lee County, Florida
                                                Lee County, Florida
                                          COMBINING BALANCE SHEET
                                       NON - MAJOR GOVERNMENTAL FUNDS
                                              As of September 30, 2006
                                              (amounts expressed in thousands)


                                                                        Special Revenue Funds
                                               Hickey                        State Housing
                                               Creek            Special        Incentives     Human           Surface
                                              Mitigation       Revenue        Partnership    Services         Water
                                                Trust          Projects         Program       Grants        Management

ASSETS
Cash and cash equivalents                            $739         $5,114           $7,714         $793              $469
Cash and cash equivalents with fiscal agent
Investments
Receivables (net)
 Accounts                                                                                               5
 Special assessments
 Accrued interest                                          5          22               56               7                 7
Due from other funds                                                 284
Due from other governments                                           464                           473
Inventory                                                                                                             19
Prepaids                                                                                                               1
  Total assets                                        744           5,884           7,770        1,278              496


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                                      454             172            90                36
 Accrued liabilities                                       1          14               4             2                61
 Due to other funds                                                                                337
 Due to other governments                                  1           7                2            1                31
 Deposits and overbids
 Unearned revenues                                                   107
 Deferred revenues
 Advances from other funds
   Total liabilities                                       2          582            178           430              128
Fund Balances:
 Reserved for:
   Inventory                                                                                                          19
   Debt service
 Unreserved , designated for:
   Capital and maintenance projects
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                              742           5,302           7,592          848              349
   Capital projects funds
   Total fund balances                                742           5,302           7,592          848              368
Total liabilities and fund balances                  $744          $5,884          $7,770       $1,278             $496




                                                                                                            (continued)

      94
                                                                                            Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)


                                                                     Special Revenue Funds
                                                                     Tourist
                                                                   Development                         All
                                                                      Trust        Transportation    Hazards
                                                    E 9-1-1           Fund             Trust        Protection

ASSETS
Cash and cash equivalents                               $5,581           $1,466          $10,100         $4,307
Cash and cash equivalents with fiscal agent
Investments
Receivables (net)
 Accounts                                                 265                                167
 Special assessments
 Accrued interest                                             40             23               84             31
Due from other funds                                                        625               43             34
Due from other governments                                                                   994            651
Inventory                                                                                  2,272
Prepaids                                                                     52                1
  Total assets                                           5,886            2,166           13,661          5,023


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                           121               188              506            119
 Accrued liabilities                                       12                59              421              7
 Due to other funds                                                          28
 Due to other governments                                      6             28              195                 4
 Deposits and overbids
 Unearned revenues                                                                             6
 Deferred revenues
 Advances from other funds
  Total liabilities                                       139               303            1,128            130
Fund Balances:
 Reserved for:
  Inventory                                                                                2,272
  Debt service
 Unreserved , designated for:
  Capital and maintenance projects                                                                        2,454
  Debt service
 Unreserved , undesignated, reported in:
  Special revenue funds                                  5,747            1,863           10,261          2,439
  Capital projects funds
  Total fund balances                                    5,747            1,863           12,533          4,893
Total liabilities and fund balances                     $5,886           $2,166          $13,661         $5,023




                                                                                                    (continued)

                                                                                                           95
      Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)


                                                                      Special Revenue Funds

                                                 Impact Fees -     Impact Fees -                      Lee County
                                                  Community          Regional       Impact Fees -       Animal
                                                    Parks             Parks            EMS            Trust Fund

ASSETS
Cash and cash equivalents                              $16,843          $12,174           $1,398             $181
Cash and cash equivalents with fiscal agent
Investments
Receivables (net)
 Accounts
 Special assessments
 Accrued interest                                         126                95                 10                 1
Due from other funds
Due from other governments
Inventory
Prepaids
  Total assets                                          16,969           12,269               1,408              182


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                          2,116              455                  3
 Accrued liabilities                                       421              130
 Due to other funds
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues
 Advances from other funds                               5,710            3,750
   Total liabilities                                     8,247            4,335                  3                 0
Fund Balances:
 Reserved for:
  Inventory
  Debt service
 Unreserved , designated for:
  Capital and maintenance projects                       7,343            7,833
  Debt service
 Unreserved , undesignated, reported in:
  Special revenue funds                                  1,379              101               1,405              182
  Capital projects funds
  Total fund balances                                    8,722            7,934            1,405              182
Total liabilities and fund balances                    $16,969          $12,269           $1,408             $182




                                                                                                       (continued)

    96
                                                                                           Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (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 cash equivalents                               $4,617           $8,557             $410        $2,120
Cash and cash equivalents with fiscal agent
Investments
Receivables (net)
 Accounts                                                                        4                         237
 Special assessments
 Accrued interest
Due from other funds                                                             2
Due from other governments                                                       3                         299
Inventory
Prepaids                                                     7                6
  Total assets                                           4,624            8,572              410         2,656


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                            232               92              125           107
 Accrued liabilities                                        94               95               24            14
 Due to other funds                                      1,433              411              189         1,313
 Due to other governments                                   42              738                             57
 Deposits and overbids                                                    1,688
 Unearned revenues                                                                                         752
 Deferred revenues
 Advances from other funds
   Total liabilities                                     1,801            3,024              338         2,243
Fund Balances:
 Reserved for:
   Inventory
   Debt service
 Unreserved , designated for:
   Capital and maintenance projects
   Debt service
 Unreserved , undesignated, reported in:
   Special revenue funds                                 2,823            5,548               72           413
   Capital projects funds
   Total fund balances                                   2,823            5,548               72           413
Total liabilities and fund balances                     $4,624           $8,572             $410        $2,656




                                                                                                   (continued)

                                                                                                         97
    Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)


                                                                          Debt Service Funds
                                                 Local Option                             Road        Tourist
                                                   Gas Tax          Certificates      Improvement   Development
                                                   Revenue               of             Revenue     Tax Revenue
                                                    Bonds          Participation         Bonds         Bonds

ASSETS
Cash and cash equivalents                                 $765               $2             $564           $3,220
Cash and cash equivalents with fiscal agent              3,057            1,775                               682
Investments
Receivables (net)
 Accounts
 Special assessments
 Accrued interest
Due from other funds
Due from other governments                                761                                271
Inventory
Prepaids                                                                                    1,052
  Total assets                                           4,583            1,777             1,887           3,902


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable
 Accrued liabilities
 Due to other funds                                                                                              625
 Due to other governments
 Deposits and overbids
 Unearned revenues
 Deferred revenues
 Advances from other funds
  Total liabilities                                         0                    0             0                 625
Fund Balances:
 Reserved for:
  Inventory
  Debt service                                           3,057            1,775             1,053           1,515
 Unreserved , designated for:
  Capital and maintenance projects
  Debt service                                           1,526                   2           834            1,762
 Unreserved , undesignated, reported in:
  Special revenue funds
  Capital projects funds
  Total fund balances                                    4,583            1,777            1,887            3,277
Total liabilities and fund balances                     $4,583           $1,777           $1,887           $3,902




                                                                                                       (continued)

    98
                                                                                           Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)

                                                                                                       Capital
                                                                 Debt Service Funds                 Projects Funds
                                                  Five Cent                             MSBU
                                                 Local Option         Capital          Projects     Transportation
                                                   Gas Tax            Revenue         Commercial       Capital
                                                Revenue Bonds          Bonds            Loan        Improvements

ASSETS
Cash and cash equivalents                                   $7               $62           $1,068         $99,738
Cash and cash equivalents with fiscal agent              1,931            14,740
Investments
Receivables (net)
 Accounts                                                                                                     148
 Special assessments                                                                        3,747
 Accrued interest                                                                               2             664
Due from other funds                                                                                        5,573
Due from other governments                                                                                  6,067
Inventory
Prepaids
  Total assets                                           1,938            14,802            4,817         112,190


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                                                                             8,725
 Accrued liabilities                                                                                          496
 Due to other funds
 Due to other governments
 Deposits and overbids                                                                                      5,611
 Unearned revenues
 Deferred revenues                                                                          3,533
 Advances from other funds                                                                                 29,000
                                                            0                    0          3,533          43,832
  Total liabilities
Fund Balances:
 Reserved for:
  Inventory
  Debt service                                           1,931            14,740             511
 Unreserved , designated for:
  Capital and maintenance projects                                                                         68,358
  Debt service                                              7                   62           773
 Unreserved , undesignated, reported in:
  Special revenue funds
  Capital projects funds
  Total fund balances                                    1,938            14,802            1,284          68,358
Total liabilities and fund balances                     $1,938           $14,802           $4,817        $112,190




                                                                                                       (continued)

                                                                                                            99
     Lee County, Florida
                                             Lee County, Florida
                                       COMBINING BALANCE SHEET
                                    NON - MAJOR GOVERNMENTAL FUNDS
                                           As of September 30, 2006
                                              (amounts expressed in thousands)

                                                            Capital               Permanent
                                                        Projects Funds               Fund
                                                   Capital                         Sheriff's        Total
                                                  Revenue            MSBU         Claibourne      Non - major
                                                   Bonds -        Construction    and Foulds     Governmental
                                                 Construction       Projects         Trust          Funds

ASSETS
Cash and cash equivalents                              $12,073           $1,214            $2         $213,331
Cash and cash equivalents with fiscal agent                                   2                         22,187
Investments                                             17,815                                          17,815
Receivables (net)
 Accounts                                                                                                  830
 Special assessments                                                                                     5,517
 Accrued interest                                                                                        1,982
Due from other funds                                                                                     7,162
Due from other governments                                                                               9,983
Inventory                                                                                                2,291
Prepaids                                                                                                 1,119
  Total assets                                          29,888            1,216             2          282,217


LIABILITIES AND FUND BALANCES
Liabilities:
 Contracts and accounts payable                          2,942              171                         16,956
 Accrued liabilities                                                                                     1,863
 Due to other funds                                                                                      4,616
 Due to other governments                                                                                1,720
 Deposits and overbids                                                                      2            7,301
 Unearned revenues                                                                                         865
 Deferred revenues                                                                                       4,895
 Advances from other funds                                                                              44,460
   Total liabilities                                     2,942              171             2           82,676
Fund Balances:
 Reserved for:
  Inventory                                                                                              2,291
  Debt service                                                                                          24,582
 Unreserved , designated for:
  Capital and maintenance projects                      26,946                                         112,934
  Debt service                                                                                           4,966
 Unreserved , undesignated, reported in:
  Special revenue funds                                                                                 53,723
  Capital projects funds                                                  1,045                          1,045
  Total fund balances                                   26,946            1,045             0          199,541
Total liabilities and fund balances                    $29,888           $1,216            $2         $282,217




   100
                                                                                       Lee County, Florida
                                           Lee County, Florida
                          COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                  AND CHANGES IN FUND BALANCES
                                NON - MAJOR GOVERNMENTAL FUNDS
                                  For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)

                                                                  Special Revenue Funds
                                             Municipal
                                              Service           Special             Law            Community
                                            Benefit Unit      Assessment        Enforcement       Redevelopment
                                             Districts         Districts           Trust             Agency
REVENUES
 Taxes                                            $3,437              $163
 Licenses and permits
 Intergovernmental
 Charges for services
 Fines and forfeitures                                                                    $375
 Impact fees
 Special assessments                                                 1,217
 Miscellaneous                                       151               700                  21              $21
  Total revenues                                   3,588             2,080                 396               21
EXPENDITURES
 Current
  General government                                 100               438
  Public safety                                      859
  Physical environment
  Transportation                                   2,454               226
  Economic environment                                                                                       49
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety
  Physical environment                                                 157
  Transportation                                                       336
  Economic environment
  Human services
  Culture and recreation                           6,000
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                               9,413             1,157                   0               49
Excess (deficiencies) of revenues
 over (under) expenditures                        (5,825)              923                 396              (28)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                         36               880                 144
 Transfers out                                       (11)             (582)               (554)          (1,502)
 Debt issuance
  Total other financing sources (uses)                25               298                (410)          (1,502)
Net change in fund balances                       (5,800)            1,221                 (14)          (1,530)
Fund balances - beginning, as restated             1,801             8,928                 521            1,530
Fund balances - ending                           $(3,999)          $10,149                $507               $0
                                                                                                     (continued)
See accompanying independent auditors' report.
                                                                                                           101
       Lee County, Florida
                                                 Lee County, Florida
                                COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                        AND CHANGES IN FUND BALANCES
                                      NON - MAJOR GOVERNMENTAL FUNDS
                                        For the Year Ended September 30, 2006
                                            (amounts expressed in thousands)

                                                                           Special Revenue Funds
                                          Hickey                            State Housing
                                          Creek            Special             Incentives     Human             Surface
                                         Mitigation       Revenue             Partnership     Services          Water
                                           Trust          Projects              Program        Grants         Management
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                            $5,809               $3,218         $3,791
 Charges for services                                            691                                                $100
 Fines and forfeitures                                           274
 Impact fees
 Special assessments
 Miscellaneous                                   $36             466                1,034             52              244
  Total revenues                                  36           7,240                4,252          3,843              344
EXPENDITURES
 Current
  General government                                            110
  Public safety                                                  44
  Physical environment                                          764                                                 3,803
  Transportation
  Economic environment                                           647                1,854          3,843
  Human services                                               2,179
  Culture and recreation                         111
 Capital outlay
  General government
  Public safety
  Physical environment                                               81                                                21
  Transportation
  Economic environment                                                                                   83
  Human services                                                     3
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                             111           3,828                1,854          3,926            3,824
Excess (deficiencies) of revenues
 over (under) expenditures                       (75)          3,412                2,398            (83)          (3,480)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                                                                                       1,703
 Transfers out                                                       (1)
 Debt issuance
                                                      0              (1)               0                 0          1,703
  Total other financing sources (uses)
Net change in fund balances                      (75)          3,411                2,398            (83)          (1,777)
Fund balances - beginning, as restated           817           1,891                5,194            931            2,145
Fund balances - ending                          $742          $5,302               $7,592           $848            $368
                                                                                                               (continued)

   102
                                                                                            Lee County, Florida
                                           Lee County, Florida
                          COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                  AND CHANGES IN FUND BALANCES
                                NON - MAJOR GOVERNMENTAL FUNDS
                                  For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)

                                                                Special Revenue Funds
                                                               Tourist
                                                             Development                          All
                                                                Trust         Transportation    Hazards
                                              E 9-1-1           Fund              Trust        Protection
REVENUES
 Taxes                                                             $18,728                          $3,204
 Licenses and permits                                                                  $676
 Intergovernmental                                                                    9,346            987
 Charges for services                            $3,158                               1,471
 Fines and forfeitures
 Impact fees                                                                                           100
 Special assessments
 Miscellaneous                                       254               145            3,210            211
  Total revenues                                   3,412            18,873           14,703          4,502
EXPENDITURES
 Current
  General government                                                   562            1,020            667
  Public safety                                    1,795                                             1,494
  Physical environment
  Transportation                                                                     28,219
  Economic environment                                              11,108
  Human services
  Culture and recreation
 Capital outlay
  General government                                                                      2            127
  Public safety                                     517                                                475
  Physical environment
  Transportation                                                                        638                 1
  Economic environment                                                  68
  Human services
  Culture and recreation
 Debt service
  Principal retirement                                                 105
  Interest and fiscal charges
  Total expenditures                               2,312            11,843           29,879          2,764
Excess (deficiencies) of revenues
 over (under) expenditures                         1,100             7,030          (15,176)         1,738
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                                         1,361          12,252             33
 Transfers out                                                       (8,251)
 Debt issuance
  Total other financing sources (uses)                  0            (6,890)         12,252             33
Net change in fund balances                        1,100               140           (2,924)         1,771
Fund balances - beginning, as restated             4,647             1,723           15,457          3,122
Fund balances - ending                           $5,747             $1,863          $12,533         $4,893
                                                                                               (continued)

                                                                                                    103
     Lee County, Florida
                                           Lee County, Florida
                          COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                  AND CHANGES IN FUND BALANCES
                                NON - MAJOR GOVERNMENTAL FUNDS
                                  For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)

                                                                  Special Revenue Funds

                                           Impact Fees -      Impact Fees -                       Lee County
                                            Community           Regional        Impact Fees -       Animal
                                              Parks              Parks             EMS            Trust Fund
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental
 Charges for services                                                                                        $11
 Fines and forfeitures
 Impact fees                                     $8,880             $7,833                $434
 Special assessments
 Miscellaneous                                       824                659                 60                40
  Total revenues                                   9,704              8,492                494                51
EXPENDITURES
 Current
  General government
  Public safety                                                                            156
  Physical environment
  Transportation
  Economic environment
  Human services                                                                                               2
  Culture and recreation                            812
 Capital outlay
  General government                                                                        12
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation                           8,117            12,214
 Debt service
  Principal retirement
  Interest and fiscal charges                        253               130
  Total expenditures                               9,182            12,344                 168                 2
Excess (deficiencies) of revenues
 over (under) expenditures                          522              (3,852)               326                49
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in
 Transfers out                                     (516)
 Debt issuance
  Total other financing sources (uses)             (516)                    0                0                 0
Net change in fund balances                           6              (3,852)               326                49
Fund balances - beginning, as restated             8,716            11,786                1,079             133
Fund balances - ending                           $8,722             $7,934            $1,405                $182
                                                                                                   (continued)

    104
                                                                                      Lee County, Florida
                                           Lee County, Florida
                          COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                  AND CHANGES IN FUND BALANCES
                                NON - MAJOR GOVERNMENTAL FUNDS
                                  For the Year Ended September 30, 2006
                                         (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
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                                                    $3,805
 Charges for services                               $63            $13,442                $8           1,776
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                        2                832                  1          2,219
  Total revenues                                     65             14,274                  9          7,800
EXPENDITURES
 Current
  General government                              7,614             11,417              2,152
  Public safety                                                                                        7,032
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government                                578              2,437                69
  Public safety                                                                                           872
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement
  Interest and fiscal charges
  Total expenditures                              8,192             13,854              2,221          7,904
Excess (deficiencies) of revenues
 over (under) expenditures                        (8,127)              420             (2,212)          (104)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                      9,357                31              2,409          1,269
 Transfers out                                    (1,433)                                (189)          (925)
 Debt issuance
  Total other financing sources (uses)            7,924                 31              2,220             344
Net change in fund balances                        (203)               451                  8             240
Fund balances - beginning, as restated            3,026              5,097                64              173
Fund balances - ending                           $2,823             $5,548               $72            $413
                                                                                                 (continued)

                                                                                                    105
   Lee County, Florida
                                           Lee County, Florida
                          COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                  AND CHANGES IN FUND BALANCES
                                NON - MAJOR GOVERNMENTAL FUNDS
                                  For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)

                                                                     Debt Service Funds
                                           Local Option                               Road         Tourist
                                             Gas Tax           Certificates       Improvement    Development
                                             Revenue                of              Revenue      Tax Revenue
                                              Bonds           Participation          Bonds          Bonds
REVENUES
 Taxes                                           $9,702                                $3,444
 Licenses and permits
 Intergovernmental
 Charges for services                                                                                   $300
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                       95                 $2                325               125
  Total revenues                                  9,797                  2              3,769               425
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                            2,645              1,365                976               530
  Interest and fiscal charges                       643                585                106               289
  Total expenditures                              3,288              1,950              1,082               819
Excess (deficiencies) of revenues
 over (under) expenditures                        6,509              (1,948)            2,687               (394)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                      1,126             2,051                              2,383
 Transfers out                                    (7,541)                              (2,658)           (980)
 Debt issuance
  Total other financing sources (uses)            (6,415)            2,051             (2,658)          1,403
Net change in fund balances                          94                103                29            1,009
Fund balances - beginning, as restated            4,489              1,674              1,858           2,268
Fund balances - ending                           $4,583             $1,777             $1,887          $3,277
                                                                                                   (continued)

     106
                                                                                      Lee County, Florida
                                            Lee County, Florida
                           COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                                   AND CHANGES IN FUND BALANCES
                                 NON - MAJOR GOVERNMENTAL FUNDS
                                   For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)
                                                                                                   Capital
                                                            Debt Service Funds                  Projects Funds
                                            Five Cent                              MSBU
                                           Local Option         Capital           Projects      Transportation
                                             Gas Tax            Revenue          Commercial        Capital
                                          Revenue Bonds          Bonds             Loan         Improvements
REVENUES
 Taxes                                                                                                  $6,978
 Licenses and permits
 Intergovernmental                                                                                      10,319
 Charges for services                                                                                        6
 Fines and forfeitures
 Impact fees                                                                                            13,652
 Special assessments                                                  $190            $1,084
 Miscellaneous                                      $45                444                69            11,363
  Total revenues                                     45                634             1,153            42,318
EXPENDITURES
 Current
  General government
  Public safety
  Physical environment
  Transportation                                                                                         3,924
  Economic environment
  Human services
  Culture and recreation
 Capital outlay
  General government
  Public safety
  Physical environment
  Transportation                                                                                        55,323
  Economic environment
  Human services
  Culture and recreation
 Debt service
  Principal retirement                            1,465             11,300             1,782
  Interest and fiscal charges                     1,075              8,251               239               496
  Total expenditures                              2,540             19,551             2,021            59,743
Excess (deficiencies) of revenues
 over (under) expenditures                        (2,495)           (18,917)            (868)          (17,425)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                     2,410             18,410                              13,114
 Transfers out                                                        (867)              (43)           (3,108)
 Debt issuance
  Total other financing sources (uses)            2,410             17,543               (43)           10,006
Net change in fund balances                          (85)            (1,374)            (911)           (7,419)
Fund balances - beginning, as restated            2,023             16,176             2,195            75,777
Fund balances - ending                           $1,938            $14,802            $1,284          $68,358
                                                                                                   (continued)
                                                                                                       107
     Lee County, Florida
                                      Lee County, Florida
                     COMBINING STATEMENT OF REVENUES, EXPENDITURES,
                             AND CHANGES IN FUND BALANCES
                           NON - MAJOR GOVERNMENTAL FUNDS
                             For the Year Ended September 30, 2006
                                         (amounts expressed in thousands)
                                                                                Permanent
                                              Capital Projects Funds              Fund
                                            Capital                              Sheriff's           Total
                                           Revenue              MSBU            Claibourne         Non - major
                                            Bonds -          Construction       and Foulds        Governmental
                                          Construction          Projects           Trust             Funds
REVENUES
 Taxes                                                                                                   $45,656
 Licenses and permits                                                                                        676
 Intergovernmental                                                                                        37,275
 Charges for services                                                                                     21,026
 Fines and forfeitures                                                                                       649
 Impact fees                                                                                              30,899
 Special assessments                                                                                       2,491
 Miscellaneous                                   $1,692                $12                                25,354
  Total revenues                                  1,692                 12                   $0          164,026
EXPENDITURES
 Current
  General government                                                                                      24,080
  Public safety                                                                                           11,380
  Physical environment                                                                                     4,567
  Transportation                                                                                          34,823
  Economic environment                                                                                    17,501
  Human services                                                                                           2,181
  Culture and recreation                                                                                     923
 Capital outlay
  General government                             17,694                                                   20,919
  Public safety                                                                                            1,864
  Physical environment                                                 316                                   575
  Transportation                                                                                          56,298
  Economic environment                                                                                       151
  Human services                                                                                               3
  Culture and recreation                                                                                  26,331
 Debt service
  Principal retirement                                                                                    20,168
  Interest and fiscal charges                                           16                                12,083
  Total expenditures                             17,694                332                    0          233,847
Excess (deficiencies) of revenues
 over (under) expenditures                       (16,002)             (320)                   0          (69,821)
OTHER FINANCING SOURCES
 AND (USES)
 Transfers in                                                                                             68,969
 Transfers out                                                                                           (29,161)
 Debt issuance                                                       1,365                                 1,365
  Total other financing sources (uses)                 0             1,365                    0           41,173
Net change in fund balances                      (16,002)            1,045                    0          (28,648)
Fund balances - beginning, as restated           42,948                     0                 0          228,189
Fund balances - ending                          $26,946             $1,045                   $0         $199,541


  108
                                                                                        Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)

                                                 Non - GAAP
                                                  Municipal              Non - GAAP
                                                   Service                 Special                    Law
                                                 Benefit Unit            Assessment               Enforcement
                                                  Districts               Districts                  Trust
                                              Final                    Final                     Final
                                             Budget       Actual      Budget         Actual     Budget       Actual
REVENUES
 Taxes                                         $3,399      $3,437        $163           $163
 Licenses and permits
 Intergovernmental
 Charges for services
 Fines and forfeitures                                                                             $200         $375
 Impact fees
 Special assessments                                                       771         1,213
 Miscellaneous                                      10        151          156           717          7            21
    Total revenues                               3,409      3,588        1,090         2,093        207           396
EXPENDITURES
 Current:
  General government                              112           100          482         439
  Public safety                                   859           859
  Physical environment
  Transportation                                 3,286      2,454            358         226
  Economic environment
  Human services
  Culture and recreation
 Capital outlay:
  General government                                                         547
  Public safety
  Physical environment                                                     160           157
  Transportation                                  141                    2,280           336
  Economic environment
  Human services
  Culture and recreation                         6,000      6,000
 Debt Service
  Principal retirement
  Interest and fiscal charges
     Total expenditures                        10,398       9,413        3,827         1,158          0               0
Excess (deficiencies) of revenues
 over (under) expenditures                     (6,989)     (5,825)      (2,737)          935        207           396
OTHER FINANCING SOURCES (USES)
 Transfers in                                    6,000      6,036             500        372                      144
 Transfers out                                     (11)       (11)           (699)      (582)      (555)         (554)
   Total other financing sources (uses)          5,989      6,025            (199)      (210)      (555)         (410)
Net change in fund balances                    (1,000)          200     (2,936)         725        (348)          (14)
Fund balances - beginning, as restated           1,803      1,809        8,297         9,292        521           521
Fund balances - ending                           $803      $2,009       $5,361       $10,017       $173         $507

See accompanying independent auditors' report.                                                             (continued)
                                                                                                              109
      Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)

                                                                         Non - GAAP
                                               Non - GAAP                  Hickey                   Non - GAAP
                                               Community                   Creek                      Special
                                              Redevelopment               Mitigation                 Revenue
                                                 Agency                     Trust                     Projects
                                              Final                    Final                       Final
                                             Budget      Actual       Budget         Actual       Budget       Actual
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                                                                                 $1,206        $5,809
 Charges for services                                                                                 740           691
 Fines and forfeitures                                                                                133           274
 Impact fees
 Special assessments
 Miscellaneous                                   $21         $19              $7         $35          165           466
    Total revenues                               $21          19               7          35        2,244         7,240
EXPENDITURES
 Current:
  General government                                                                                  978           110
  Public safety                                                                                        98            44
  Physical environment                                                                                962           764
  Transportation
  Economic environment                                        49                                    3,338           647
  Human services                                                                                    4,208         2,179
  Culture and recreation                                                     140         111
 Capital outlay:
  General government
  Public safety                                                                                        49
  Physical environment                                                                                130            81
  Transportation
  Economic environment                             49
  Human services                                                                                        3               3
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                              49         49             140         111        9,766         3,828
Excess (deficiencies) of revenues
 over (under) expenditures                        (28)       (30)            (133)       (76)      (7,522)        3,412
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                                       6,674
 Transfers out                                 (1,502)    (1,502)                                      (1)           (1)
   Total other financing sources (uses)        (1,502)    (1,502)               0             0     6,673            (1)
Net change in fund balances                    (1,530)    (1,532)            (133)       (76)        (849)        3,411
Fund balances - beginning, as restated          1,530      1,562             818         825        1,931         7,250
Fund balances - ending                             $0        $30         $685           $749       $1,082       $10,661

                                                                                                             (continued)
  110
                                                                                         Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)

                                               Non - GAAP                Non - GAAP               Non - GAAP
                                               State Housing               Human                    Surface
                                           Incentives Partnership         Services                  Water
                                                  Program                  Grants                 Management
                                              Final                     Final                    Final
                                             Budget       Actual       Budget        Actual     Budget       Actual
REVENUES
 Taxes
 Licenses and permits
 Intergovernmental                             $3,094       $3,218      $8,410        $3,791
 Charges for services                                                                              $100         $100
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                    194        1,030          37            52        237           243
    Total revenues                              3,288        4,248       8,447         3,843        337           343
EXPENDITURES
 Current:
  General government
  Public safety
  Physical environment                                                                            4,482         3,803
  Transportation
  Economic environment                          5,145        1,854       8,343         3,843
  Human services                                                           266
  Culture and recreation
 Capital outlay:
  General government
  Public safety
  Physical environment                                                                              137              21
  Transportation
  Economic environment                                                       166          83
  Human services
  Culture and recreation
 Debt Service
  Principal retirement
  Interest and fiscal charges
   Total expenditures                           5,145        1,854       8,775         3,926      4,619         3,824

Excess (deficiencies) of revenues
 over (under) expenditures                     (1,857)      2,394            (328)       (83)    (4,282)       (3,481)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                  94         94      3,406         1,703
 Transfers out                                                                (95)       (95)
   Total other financing sources (uses)               0            0           (1)        (1)     3,406         1,703
Net change in fund balances                    (1,857)      2,394            (329)       (84)      (876)       (1,778)
Fund balances - beginning, as restated          5,201              0         933         932      2,145         2,144
Fund balances - ending                         $3,344      $2,394            $604       $848     $1,269         $366


                                                                                                           (continued)
                                                                                                               111
      Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)

                                                                        Non - GAAP
                                                                          Tourist
                                                                        Development                  Non - GAAP
                                                Non - GAAP                 Trust                    Transportation
                                                 E9-1-1                    Fund                         Trust
                                              Final                    Final                       Final
                                             Budget      Actual       Budget       Actual         Budget        Actual

REVENUES
 Taxes                                                                 $17,945     $18,728
 Licenses and permits                                                                                 $535          $676
 Intergovernmental                                                                                   9,350         9,346
 Charges for services                          $2,712     $3,158                                     1,562         1,471
 Fines and forfeitures
 Impact fees
 Special assessments
 Miscellaneous                                    104        250            50         143           2,617         3,199
    Total revenues                              2,816      3,408        17,995      18,871          14,064        14,692

EXPENDITURES
 Current:
  General government                                                         565       562           1,045         1,020
  Public safety                                 2,022      1,794
  Physical environment
  Transportation                                                                                    30,016        28,323
  Economic environment                                                  11,449      11,108
  Human services
  Culture and recreation
 Capital outlay:
  General government                                                                                     4               2
  Public safety                                 1,400        517
  Physical environment
  Transportation                                                                                     1,163           638
  Economic environment                                                        70        68
  Human services
  Culture and recreation
 Debt Service
  Principal retirement                                                       105       105               9
  Interest and fiscal charges
   Total expenditures                           3,422      2,311        12,189      11,843          32,237        29,983
Excess (deficiencies) of revenues
 over (under) expenditures                       (606)     1,097         5,806       7,028         (18,173)      (15,291)
OTHER FINANCING SOURCES (USES)
 Transfers in                                     187         170        1,361       1,361          16,425        12,252
 Transfers out                                   (187)       (170)      (8,253)     (8,251)
   Total other financing sources (uses)             0          0        (6,892)     (6,890)         16,425        12,252
Net change in fund balances                      (606)     1,097        (1,086)        138          (1,748)       (3,039)
Fund balances - beginning, as restated          4,653      4,659         1,726       1,744          13,313        14,641
Fund balances - ending                         $4,047     $5,756         $640       $1,882         $11,565       $11,602

                                                                                                              (continued)
    112
                                                                                            Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)


                                                Non - GAAP               Non - GAAP                Non - GAAP
                                                    All                  Impact Fees -             Impact Fees -
                                                  Hazards                 Community                  Regional
                                                 Protection                  Parks                     Parks
                                                                       Final                     Final
                                              Final
                                             Budget      Actual       Budget      Actual        Budget      Actual

REVENUES
 Taxes                                         $3,158     $3,204
 Licenses and permits
 Intergovernmental                               257          987
 Charges for services
 Fines and forfeitures
 Impact fees                                      74          100       $5,865        $8,880     $5,957         $7,833
 Special assessments
 Miscellaneous                                     80        210           183           811        238            648
    Total revenues                              3,569      4,501         6,048         9,691      6,195          8,481

EXPENDITURES
 Current:
  General government                            2,999        667
  Public safety                                 1,494      1,494
  Physical environment
  Transportation
  Economic environment
  Human services
  Culture and recreation                                                     812        813
 Capital outlay:
  General government                             174          127
  Public safety                                  532          475
  Physical environment
  Transportation                                  85              1
  Economic environment
  Human services
  Culture and recreation                                                15,918         8,117     19,927         12,214
 Debt Service
  Principal retirement
  Interest and fiscal charges                                              253           253        167            130
   Total expenditures                           5,284      2,764        16,983         9,183     20,094         12,344
Excess (deficiencies) of revenues
 over (under) expenditures                     (1,715)     1,737       (10,935)         508      (13,899)       (3,863)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                  33                                  5,000         5,000
 Transfers out                                                               (516)      (516)     (1,250)       (1,250)
   Total other financing sources (uses)             0          33            (516)      (516)      3,750         3,750
Net change in fund balances                    (1,715)     1,770       (11,451)           (8)   (10,149)          (113)
Fund balances - beginning, as restated          3,126      3,135        14,814        16,471     11,786         11,740
Fund balances - ending                         $1,411     $4,905        $3,363       $16,463     $1,637        $11,627


                                                                                                            (continued)
                                                                                                               113
     Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)



                                                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
 Charges for services                                                                   $11            $15            $63
 Fines and forfeitures
 Impact fees                                    $355        $434
 Special assessments
 Miscellaneous                                    25             59          $11         41                             2
    Total revenues                               380            493           11         52             15             65
EXPENDITURES
 Current:
  General government                                                                                  9,104         7,614
  Public safety                                  420            156
  Physical environment
  Transportation
  Economic environment
  Human services                                                              40             2
  Culture and recreation
 Capital outlay:
  General government                             591            12                                     786            578
  Public safety
  Physical environment
  Transportation
  Economic environment
  Human services                                                              5
  Culture and recreation
Debt Service
 Principal retirement
 Interest and fiscal charges
  Total expenditures                            1,011           168           45             2        9,890         8,192
Excess (deficiencies) of revenues
 over (under) expenditures                       (631)          325          (34)        50          (9,875)       (8,127)
OTHER FINANCING SOURCES (USES)
 Transfers in                                                                                         9,395         9,357
 Transfers out                                                                                                     (1,433)
   Total other financing sources (uses)             0             0            0             0        9,395         7,924
Net change in fund balances                      (631)          325          (34)        50            (480)         (203)
Fund balances - beginning, as restated          1,081      1,083             133        132            480          3,026
Fund balances - ending                          $450      $1,408             $99       $182             $0         $2,823

                                                                                                               (continued)
    114
                                                                                             Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)


                                                  Clerk of
                                                                                         Total
                                               Circuit Court's
                                                   Special
                                                                                                     Variance with
                                                  Revenue
                                                                                                     Final Budget
                                              Final                     Final                          Positive
                                             Budget      Actual         Budget          Actual        (Negative)
REVENUES
 Taxes                                                                       $24,665      $25,532            $867
 Licenses and permits                                                            535          676             141
 Intergovernmental                                                            22,317       23,151             834
 Charges for services                        $12,304     $13,442              17,433       18,936           1,503
 Fines and forfeitures                                                           333          649             316
 Impact fees                                                                  12,251       17,247           4,996
 Special assessments                                                             771        1,213             442
 Miscellaneous                                    107         832              4,249        8,929           4,680
    Total revenues                             12,411      14,274             82,554       96,333          13,779
EXPENDITURES
 Current:
  General government                           12,177      11,417             27,462       21,929           5,533
  Public safety                                                                4,893        4,347             546
  Physical environment                                                         5,444        4,567             877
  Transportation                                                              33,660       31,003           2,657
  Economic environment                                                        28,275       17,501          10,774
  Human services                                                               4,514        2,181           2,333
  Culture and recreation                                                         952          924              28
 Capital outlay:
  General government                            3,264       2,437              5,366        3,156           2,210
  Public safety                                                                1,981          992             989
  Physical environment                                                           427          259             168
  Transportation                                                               3,669          975           2,694
  Economic environment                                                           285          151             134
  Human services                                                                   8            3               5
  Culture and recreation                                                      41,845       26,331          15,514
Debt Service
 Principal retirement                                                            114          105               9
 Interest and fiscal charges                                                     420          383              37
  Total expenditures                           15,441      13,854            159,315      114,807          44,508
Excess (deficiencies) of revenues
 over (under) expenditures                     (3,030)       420             (76,761)     (18,474)         58,287
OTHER FINANCING SOURCES (USES)
 Transfers in                                    140             31           49,182       36,553          (12,629)
 Transfers out                                                               (13,069)     (14,365)          (1,296)
   Total other financing sources (uses)          140             31           36,113       22,188          (13,925)
Net change in fund balances                    (2,890)       451             (40,648)       3,714          44,362
Fund balances - beginning, as restated          3,900       5,097             78,191       86,063           7,872
Fund balances - ending                         $1,010      $5,548            $37,543      $89,777         $52,234



                                                                                                           115
    Lee County, Florida
                                      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, 2006
                                          (amounts expressed in thousands)



                                               Local Option               Certificates                 Road
                                                 Gas Tax                       of                   Improvement
                                              Revenue Bonds              Participation             Revenue Bonds
                                              Final                    Final                      Final
                                             Budget      Actual       Budget      Actual         Budget        Actual
REVENUES
 Taxes                                         $8,768     $9,702                                   $3,237        $3,444
 Charges for services
 Special assessments
 Miscellaneous                                     314        95                          $2          296           325
   Total revenues                                9,082     9,797             0             2        3,533         3,769

EXPENDITURES
 Debt Service
  Principal retirement                           2,645     2,645        $1,365       1,365           976            976
  Interest and fiscal charges                      647       643           586         585           106            106
  Bond issuance costs
   Total expenditures                            3,292     3,288         1,951       1,950          1,082         1,082
Excess (deficiencies) of revenues
 over (under) expenditures                       5,790     6,509        (1,951)     (1,948)         2,451         2,687

OTHER FINANCING SOURCES (USES)
 Transfers in                                     805      1,126         1,954       2,051
 Transfers out                                 (7,545)    (7,541)                                  (3,225)       (2,658)
 Bond premium
 Proceeds from long-term debt
 Payment to refunding escrow agent
   Total other financing sources (uses)        (6,740)    (6,415)        1,954       2,051         (3,225)       (2,658)
Net change in fund balances                      (950)        94             3           103         (774)           29

Fund balances - beginning                        4,489     4,489         1,674       1,674          1,858         1,858

Fund balances - ending                         $3,539     $4,583        $1,677     $1,777          $1,084        $1,887




See accompanying independent auditors' report.                                                               (continued)




   116
                                                                                          Lee County, Florida
                                         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, 2006
                                          (amounts expressed in thousands)

                                                 Tourist                  Five Cent
                                              Development               Local Option          Non - GAAP
                                                  Tax                      Gas Tax              Capital
                                             Revenue Bonds             Revenue Bonds         Revenue Bonds
                                            Final                     Final                  Final
                                           Budget      Actual        Budget      Actual     Budget      Actual

REVENUES
 Taxes
 Charges for services                          $300       $300
 Special assessments                                                                           $259        $195
 Miscellaneous                                   50        125               $6      $45         84         456
   Total revenues                               350        425                6       45        343         651

EXPENDITURES
 Debt Service
  Principal retirement                          530        530         1,465       1,465     11,300      11,300
  Interest and fiscal charges                   290        289         1,075       1,075      8,252       8,251
  Bond issuance costs
   Total expenditures                           820        819         2,540       2,540     19,552      19,551

Excess (deficiencies) of revenues
 over (under) expenditures                     (470)       (394)       (2,534)    (2,495)    (19,209)    (18,900)

OTHER FINANCING SOURCES (USES)
 Transfers in                                  3,560      4,341        2,534       2,410     14,466      18,410
 Transfers out                                (2,950)    (2,938)                               (359)       (359)
 Bond premium
 Proceeds from long-term debt
 Payment to refunding escrow agent
   Total other financing sources (uses)         610       1,403        2,534       2,410     14,107      18,051

Net change in fund balances                     140       1,009               0      (85)     (5,102)      (849)

Fund balances - beginning                     2,268       2,268        2,023       2,023     15,651      16,424

Fund balances - ending                       $2,408      $3,277       $2,023      $1,938    $10,549     $15,575




                                                                                                        (continued)




                                                                                                          117
       Lee County, Florida
                                         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, 2006
                                          (amounts expressed in thousands)

                                                                                       Total
                                              Non - GAAP
                                             MSBU Projects
                                                                                                       Variance with
                                            Commercial Loan
                                                                                                       Final Budget
                                             Final                     Final                             Positive
                                            Budget      Actual        Budget           Actual           (Negative)
REVENUES
 Taxes                                                                   $12,005         $13,146             $1,141
 Charges for services                                                        300             300
 Special assessments                            $921       $974            1,180           1,169                (11)
 Miscellaneous                                    84         77              834           1,125                291
   Total revenues                              1,005      1,051           14,319          15,740              1,421

EXPENDITURES
 Debt Service
  Principal retirement                         1,785      1,782              20,066       20,063                  3
  Interest and fiscal charges                    255        239              11,211       11,188                 23
  Bond issuance costs
   Total expenditures                          2,040      2,021              31,277       31,251                 26
Excess (deficiencies) of revenues
 over (under) expenditures                    (1,035)      (970)         (16,958)         (15,511)            1,447

OTHER FINANCING SOURCES (USES)
 Transfers in                                                             23,319           28,338             5,019
 Transfers out                                   (43)       (43)         (14,122)         (13,539)              583
 Bond premium
 Proceeds from long-term debt
 Payment to refunding escrow agent
   Total other financing sources (uses)          (43)       (43)              9,197       14,799              5,602
Net change in fund balances                   (1,078)    (1,013)             (7,761)           (712)          7,049

Fund balances - beginning                      2,081      2,143              30,044       30,879                835

Fund balances - ending                        $1,003     $1,130          $22,283         $30,167             $7,884




     118
                                                                                       Lee County, Florida
                                       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, 2006
                                          (amounts expressed in thousands)

                                                Non - GAAP              Non - GAAP
                                               Transportation              Capital                MSBU
                                                  Capital              Revenue Bonds-          Construction
                                               Improvements             Construction             Projects
                                              Final                    Final                  Final
                                             Budget      Actual       Budget      Actual     Budget       Actual
REVENUES
 Taxes                                         $6,394     $6,978
 Intergovernmental                             19,911     10,319
 Charges for services                                          6
 Impact Fees                                  13,652      13,652
 Miscellaneous                                 7,780      13,012         $285      $1,681       $11             $12
    Total revenues                            47,737      43,967          285       1,681        11              12
EXPENDITURES
 Current
  Physical Environment
  Transportation
 Capital Outlay                               15,356       3,924
  General government                                                   43,233      17,694
  Physical Environment                                                                          316             316
  Transportation                             133,104      55,323
 Debt Service
  Principal retirement
  Interest and fiscal charges                    496         496                                 19              16
    Total expenditures                       148,956      59,743       43,233      17,694       335             332
Excess (deficiencies) of revenues
 over (under) expenditures                   (101,219)   (15,776)      (42,948)   (16,013)      (324)         (320)

OTHER FINANCING SOURCES (USES)
 Transfers in                                 42,036      42,324
 Transfers out                                (3,409)     (3,318)
 Proceeds from long-term debt                                                                   324          1,365
   Total other financing sources (uses)       38,627      39,006             0          0       324          1,365
Net change in fund balances                   (62,592)    23,230       (42,948)   (16,013)         0         1,045
Fund balances - beginning                      75,777     74,433        42,948     42,946          0               0
Fund balances - ending                        $13,185    $97,663             $0   $26,933         $0        $1,045




See accompanying independent auditors' report.                                                          (continued)




                                                                                                          119
     Lee County, Florida
                              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, 2006
                                     (amounts expressed in thousands)

                                                                        Total
                                                                                        Variance with
                                                                                        Final Budget
                                                       Final                              Positive
                                                       Budget           Actual           (Negative)
REVENUES
 Taxes                                                       $6,394         $6,978                $584
 Intergovernmental                                           19,911         10,319              (9,592)
 Charges for services                                                            6                   6
 Impact Fees                                                13,652          13,652
 Miscellaneous                                               8,076          14,705               6,629
      Total revenues                                        48,033          45,660              (2,373)
EXPENDITURES
 Current
  Physical Environment
  Transportation                                             15,356             3,924           11,432
 Capital Outlay
  General government                                        43,233          17,694              25,539
  Physical Environment                                         316             316
  Transportation                                           133,104          55,323              77,781
 Debt Service
    Principal retirement
    Interest and fiscal charges                                515             512                  3
     Total expenditures                                    192,524          77,769            114,755
 Excess (deficiencies) of revenues
  over (under) expenditures                                (144,491)       (32,109)           112,382

 OTHER FINANCING SOURCES (USES)
  Transfers in                                              42,036          42,324                 288
  Transfers out                                             (3,409)         (3,318)                 91
  Proceeds from long-term debt                                 324           1,365               1,041
    Total other financing sources (uses)                    38,951          40,371               1,420

 Net change in fund balances                               (105,540)            8,262         113,802
 Fund balances - beginning                                 118,725         117,379              (1,346)

 Fund balances - ending                                    $13,185        $125,641           $112,456




120
                                                                                         Lee County, Florida
                      Enterprise Funds




                                         121
Lee County, Florida
      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.




122
                                                                                           Lee County, Florida
                                                                   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, 2006
                                                            (amounts expressed in thousands)

                                                               Port Authority                Water and Wastewater           Transportation Facilities

                                                          Budget           Actual           Budget          Actual          Budget            Actual
OPERATING REVENUES
  User fees                                                  $47,138             $43,900      $67,562         $69,604
  Tolls                                                                                                                       $41,521            $41,058
 Rentals and franchise fees                                    3,638               3,734             72              135
  Concessions                                                 33,823              36,002
  Miscellaneous                                                1,221                 228          957             915             106                133
  Total operating revenues                                    85,820              83,864       68,591          70,654          41,627             41,191
  Less: Rebates                                               (3,266)             (2,031)
  Net operating revenues                                      82,554              81,833       68,591          70,654          41,627             41,191
OPERATING EXPENSES
  Salaries and wages                                          15,910              16,471       13,801          13,003           4,090              3,994
 Employee benefits                                             6,189               6,406        4,928           4,802           1,701              1,650
  Contractual services, materials, and supplies               21,550              19,148       17,867          17,867           3,087              1,898
  Utilities                                                    6,407               4,951        6,852           6,825             352                323
  Repairs and maintenance                                      2,499               2,263        3,872           3,711             891                518
  Insurance                                                    2,158               2,134          820             821           1,640              1,635
  Other                                                        2,305               2,639        3,780           3,557             982                800
  Total operating expenses                                    57,018              54,012       51,920          50,586          12,743             10,818
    Operating income (loss)                                   25,536              27,821       16,671          20,068          28,884             30,373
NON - OPERATING REVENUES (EXPENSES)
  Interest revenue                                             9,288               5,853         3,603          7,799             594              4,264
  Taxes
  Grants                                                                                         1,970          2,515             150                   510
  Special assessment collections                                                                   529            481
 Bond proceeds                                                40,000              38,795                                       23,500             15,500
  Other debt proceeds                                          5,917               6,630         9,375           9,835
  Interest expense                                           (24,925)            (22,488)       (9,415)         (9,415)        (10,437)          (10,433)
  Capital outlay                                            (118,422)            (49,735)     (133,182)        (32,789)       (107,965)          (61,923)
  Principal retirement                                        (8,724)             (8,085)       (5,801)         (5,801)        (12,375)          (12,373)
  Payment to refunding escrow agent                          (39,300)            (38,682)
  Proceeds from disposal of capital assets                                           685              5               48                                 16
 Passenger facility charges                                   19,559              15,567
  Other revenues                                                                   4,172           210             425             165               888
 Other expenses                                                 (142)                (14)         (191)           (191)           (134)             (134)
Total non - operating revenues (expenses)                   (116,749)            (47,302)     (132,897)        (27,093)       (106,502)          (63,685)
Income (loss) before contributions, special item
 and transfers                                               (91,213)            (19,481)     (116,226)        (7,025)         (77,618)          (33,312)
  Capital contributions                                       30,623              25,359        16,500         19,048
  Transfers in                                                91,271              61,242        36,519         36,562          45,375             42,756
  Transfers out                                              (80,497)            (61,242)      (36,564)       (36,562)        (50,705)           (50,694)
Total contributions and transfers                             41,397              25,359        16,455         19,048          (5,330)            (7,938)
Change in net assets                                         (49,816)              5,878       (99,771)        12,023         (82,948)           (41,250)
Total net assets - beginning                                 109,390             111,232       141,567        179,075          99,338            102,341
Total net assets - ending                                    $59,574            $117,110       $41,796       $191,098         $16,390            $61,091
RECONCILIATION OF BUDGETARY BASIS TO GAAP
  Change in net assets, budgetary basis                                           $5,878                      $12,023                           ($41,250)
   Add: Capital outlay                                                            49,735                       32,789                             61,923
          Compensated absences                                                        69
          Arbitrage adjustments                                                       21
          Principal retirement                                                     8,085                        5,801                             12,373
          Payment to escrow agent                                                 38,682
          Capitalized interest                                                       308                                                           1,747
          Capital contributions                                                                                12,144
          Inventory adjustments                                                                                    94                                    34
          Fair market value adjustment                                                74                          112                                    53
          Fixed asset transfers                                                                                    15
          Net book value of capital assets disposed                                                                                                    50
   Less: Depreciation and amortization                                           (16,334)                      (21,439)                            (4,754)
          Compensated absences                                                                                    (207)                               (24)
          Inventory adjustments                                                      (37)
          Fair market value adjustment
          Capitalized interest                                                                                       (40)
          Amortization of discount and issuance costs                               (955)                           (710)                          (1,283)
          Loan payments from other governments
          Special assessment collections                                                                            (481)
          Bond proceeds                                                          (38,795)                                                        (15,500)
          Other debt proceeds                                                     (6,630)                       (9,835)
          Net book value of capital assets disposed                                   (3)                       (2,522)
          Accounts receivable adjustments
Change in net assets                                                             $40,098                      $27,744                            $13,369

See accompanying independent auditors' report.                                                                                                (continued)

                                                                                                                                                 123
    Lee County, Florida
                                                                               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, 2006
                                                                         (amounts expressed in thousands)
                                                                                                      Other Non-Major                     Total
                                                                    Solid Waste                           Transit                                      Variance
                                                                                                                                                       Positive
                                                               Budget         Actual         Budget         Actual          Budget        Actual       (Negative)
OPERATING REVENUES
  User fees                                                       $58,029        $65,987         $2,280         $3,074       $175,009      $182,565         $7,556
  Tolls                                                                                                                        41,521        41,058           (463)
  Rentals and franchise fees                                        1,600          1,463              11              11        5,321         5,343             22
  Concessions                                                                                                                  33,823        36,002          2,179
  Miscellaneous                                                     9,227         10,935                             1         11,511        12,212            701
  Total operating revenues                                         68,856         78,385          2,291          3,086        267,185       277,180          9,995
  Less: Rebates                                                                                                                (3,266)       (2,031)         1,235
  Net operating revenues                                           68,856         78,385          2,291          3,086        263,919       275,149         11,230
OPERATING EXPENSES
  Salaries and wages                                                2,591          2,412          8,600          8,221         44,992        44,101            891
  Employee benefits                                                   991            991          4,006          3,799         17,815        17,648            167
  Contractual services, materials, and supplies                    40,281         40,280          3,563          2,915         86,348        82,108          4,240
  Utilities                                                         2,247          1,750            200            200         16,058        14,049          2,009
  Repairs and maintenance                                             516            515          1,219          1,218          8,997         8,225            772
  Insurance                                                            86             86            247            247          4,951         4,923             28
  Other                                                             1,253          1,253            788            661          9,108         8,910            198
  Total operating expenses                                         47,965         47,287         18,623         17,261        188,269       179,964          8,305
    Operating income (loss)                                        20,891         31,098        (16,332)       (14,175)        75,650        95,185         19,535
NON - OPERATING REVENUES (EXPENSES)
  Interest revenue                                                  2,202          6,252           140               462        15,827       24,630          8,803
  Taxes                                                             1,747          1,783                                         1,747        1,783             36
  Grants                                                              110          1,319          5,419          4,687           7,649        9,031          1,382
  Special assessment collections                                                                                                   529          481            (48)
  Bond proceeds                                                   107,411        107,411                                       170,911      161,706         (9,205)
  Other debt proceeds                                                                                                           15,292       16,465          1,173
  Interest expense                                                 (8,797)        (7,926)            (1)            (1)        (53,575)     (50,263)         3,312
  Capital outlay                                                 (125,489)       (65,732)        (9,600)          (878)       (494,658)    (211,057)       283,601
  Principal retirement                                            (11,988)       (11,987)                                      (38,888)     (38,246)           642
  Payment to refunding escrow agent                               (25,184)       (25,184)                                      (64,484)     (63,866)           618
  Proceeds from disposal of capital assets                                            54              45             163            50          966            916
  Passenger facility charges                                                                                                    19,559       15,567         (3,992)
  Other revenues                                                                       3              10               8           385        5,496          5,111
  Other expenses                                                      (18)            (6)                                         (485)        (345)           140
Total non - operating revenues (expenses)                         (60,006)         5,987         (3,987)         4,441        (420,141)    (127,652)       292,489
Income (loss) before contributions, special item
 and transfers                                                    (39,115)        37,085        (20,319)        (9,734)      (344,491)      (32,467)       312,024
  Capital contributions                                                                           6,742          1,103         53,865        45,510         (8,355)
  Transfers in                                                     84,895         84,350         12,038         12,063        270,098       236,973        (33,125)
  Transfers out                                                   (84,741)       (84,029)                                    (252,507)     (232,527)        19,980
Total contributions, special item, and transfers                      154            321         18,780         13,166         71,456        49,956        (21,500)
Change in net assets                                              (38,961)        37,406         (1,539)         3,432       (273,035)       17,489        290,524
Total net assets - beginning                                      109,045        128,412          4,740          5,767        464,080       526,827         62,747
Total net assets - ending                                         $70,084       $165,818         $3,201         $9,199       $191,045      $544,316       $353,271
RECONCILIATION OF BUDGETARY BASIS TO GAAP
  Change in net assets, budgetary basis                                          $37,406                        $3,432                      $17,489
   Add: Capital outlay                                                            65,732                           878                      211,057
          Compensated absences                                                                                                                   69
          Arbitrage adjustments                                                                                                                  21
          Principal retirement                                                    11,987                                                     38,246
          Payment to escrow agent                                                 25,184                                                     63,866
          Capitalized interest                                                     1,806                                                      3,861
          Capital contributions                                                                                                              12,144
          Inventory adjustments                                                                                                                 128
          Fair market value adjustment                                                                                                          239
          Fixed asset transfers                                                                                        3                         18
          Net book value of capital assets disposed                                   29                                                         79
   Less: Depreciation and amortization                                            (7,147)                       (1,703)                     (51,377)
          Compensated absences                                                       (42)                           (5)                        (278)
          Inventory adjustments                                                                                                                 (37)
          Fair market value adjustment                                                 (9)                                                       (9)
          Capitalized interest                                                                                                                  (40)
          Amortization of discount and issuance costs                               (748)                                                    (3,696)
          Loan payments from other governments                                       (80)                                                       (80)
          Special assessment collections                                                                                                       (481)
          Bond proceeds                                                         (107,411)                                                  (161,706)
          Other debt proceeds                                                                                                               (16,465)
          Net book value of capital assets disposed                                                                   (2)                    (2,527)
          Accounts receivable adjustments                                         (2,664)                                                    (2,664)
Change in net assets                                                             $24,043                        $2,603                     $107,857




           124
                                                                                                                             Lee County, Florida
                      Internal Service Funds




                                               125
Lee County, Florida
      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.




126
                                                                                         Lee County, Florida
                                                                                                                 Lee County, Florida
                                                                                                      COMBINING STATEMENT OF NET ASSETS
                                                                                                            INTERNAL SERVICE FUNDS
                                                                                                               As of September 30, 2006
                                                                                                          (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 cash equivalents                                   $4,356               $5,368            $18,151              $10,661            $24,397             $3,769        $66,702
                              Restricted assets                                                                                                                                 318                               318
                              Receivables (net)                                               42                  134                  653                    83                178                              1,090




Lee County, Florida
                              Due from other funds                                                                 72                                          1                                   400            473
                              Due from other governments                                                           95                                                                                              95
                              Inventories                                                                                                                                       211                               211
                              Other                                                           18                                                              68                  2                                88
                               Total current assets                                        4,416                5,669              18,804              10,813              25,106             4,169         68,977
                            Noncurrent Assets:
                              Restricted assets                                                                                                                                  34                                34
                              Capital assets:
                               Non-depreciable                                               140                   22                                                           510                               672
                               Depreciable                                                10,584                8,644                     2                   31           15,241                           34,502
                               Less accumulated depreciation                               (7,624)             (6,735)                                       (15)          (9,186)                          (23,560)
                              Intangible assets (net)                                      1,352                                                                                                                 1,352
                              Unamortized bond costs (net)                                                                                                                       12                                12
                               Total noncurrent assets                                     4,452                1,931                     2                   16               6,611                 0      13,012
                                 Total assets                                              8,868                7,600              18,806              10,829              31,717             4,169         81,989
                              LIABILITIES
                              Current liabilities:
                               Contracts and accounts payable                              1,850                   38                  332                   107                698                              3,025
                               Accrued liabilities                                                3                10                   16                    11                 45                                85
                               Due to other governments                                           2                76                     8                    5                 19                               110
                               Self-insurance claims payable                                                                        3,348               1,102                                 1,693              6,143
                               Compensated absences                                               2                 5                     2                    1                 11                                21
                              Current liabilities payable from restricted assets:
                               Accrued liabilities                                                                                                                               42                                42
                               Revenue bonds payable - current                                                                                                                  276                               276
                                   Total current liabilities                               1,857                  129               3,706               1,226                  1,091          1,693              9,702
                              Noncurrent liabilities:
                               Self-insurance claims payable                                                                                            8,851                                                    8,851
                               Compensated absences                                               8                35                   36                    19                 96                               194
                               Revenue bonds payable                                                                                                                           1,333                             1,333
                                   Total noncurrent liabilities                                   8                35                   36              8,870                  1,429                 0      10,378
                                      Total liabilities                                    1,865                  164               3,742              10,096                  2,520          1,693         20,080
                              NET ASSETS
                               Invested in capital assets, net of related debt             3,099                1,930                     2                   16               4,968                        10,015
                               Restricted for debt service                                                                                                                      311                               311




             127
                               Unrestricted                                                3,904                5,506              15,062                    717           23,918             2,476         51,583
                                      Total net assets                                    $7,003               $7,436            $15,064                $733             $29,197             $2,476        $61,909
                      See accompanying independent auditors' report.
                                                                                     Lee County, Florida
                                                       COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                                                                                 INTERNAL SERVICE FUNDS




            128
                                                                            For the Year Ended September 30, 2006
                                                                              (amounts expressed in thousands)

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

                      OPERATING REVENUES
                       User fees                                            $13,535              $1,840            $37,224              $8,257            $12,321            $16,424         $89,601
                         Total operating revenues                            13,535               1,840             37,224                8,257             12,321             16,424         89,601


                      OPERATING EXPENSES
                       Salaries and wages                                        92                268                441                      298              1,195                              2,294
                       Employee benefits                                         21                   79              136                       90               455                                781
                       Contractual services, materials and supplies           9,295                   32             3,249                     613              3,055                967      17,211
                       Utilities                                              3,117                187                     5                     5                55                               3,369
                       Repairs and maintenance                                  456                561                                           3              1,838                              2,858
                       Insurance                                                                       1                                  3,949                   22                 970           4,942
                       Insurance claims                                                                             30,068                3,346                                12,098         45,512
                       Other                                                    307                112                 62                       62               195                                738
                       Depreciation                                           1,028                273                                           3              1,266                              2,570
                         Total operating expenses                            14,316               1,513             33,961                8,369                 8,081          14,035         80,275
                      Operating income (loss)                                  (781)               327               3,263                 (112)                4,240           2,389              9,326

                      NON-OPERATING REVENUES (EXPENSES)
                       Interest revenue                                         346                251                718                      547              1,051                 85           2,998
                       Grants                                                                         (85)                                      25                18                                 (42)
                       Interest expense                                                                                                                         (130)                              (130)
                       Gain (loss) on disposal of fixed assets                                         (5)                                                       363                                358
                       Other revenues                                                1             217                177                        2                 4                                401
                       Other expenses                                                                                                                              (1)                                (1)
                         Total non-operating revenues (expenses)                347                378                895                      574              1,305                 85           3,584

                      Income (loss) before transfers                           (434)               705               4,158                     462              5,545           2,474         12,910
                       Transfers in                                             441                                  1,150                                       182                               1,773
                       Transfers out                                            (41)                                                                               (1)                               (42)
                         Total transfers                                        400                    0             1,150                       0               181                   0           1,731

                      Change in net assets                                      (34)               705               5,308                     462              5,726           2,474         14,641

                      Total net assets - beginning                            7,037               6,731              9,756                     271          23,471                     2      47,268




Lee County, Florida
                      Total net assets - ending                              $7,003              $7,436            $15,064                $733            $29,197              $2,476        $61,909

                      See accompanying independent auditors' report.
                                                                              Lee County, Florida
                                                             COMBINING STATEMENT OF CASH FLOWS
                                                                         INTERNAL SERVICE FUNDS
                                                                     For the Year Ended September 30, 2006
                                                                       (amounts expressed in thousands)


                                                                          Governmental       Self-Insurance    Self-Insurance                        Sheriff
                                                      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                          $7                 $1,223              $6,797                 $2         $226                             $8,255
   Receipts from interfund services provided              13,529                      706            30,355            8,257         12,153           $16,024           81,024
   Payments to suppliers                                  (12,249)                 (880)            (32,531)          (7,647)        (4,452)           (14,840)        (72,599)
   Payments to employees                                     (103)                 (306)               (495)            (338)        (1,418)                            (2,660)
   Payments for interfund services used                        (6)                    (52)             (101)             (69)          (416)                                 (644)
Net cash provided by operating activities                   1,178                     691             4,025             205           6,093              1,184          13,376

CASH FLOWS FROM NONCAPITAL
 FINANCING ACTIVITIES
   Non-capital grant                                                                  (85)                                  25                                                (60)
   Transfers in                                                                                       1,150                                                               1,150
Net cash provided by
 noncapital financing activities                                0                     (85)            1,150                 25                0                 0         1,090

CASH FLOWS FROM CAPITAL AND
 RELATED FINANCING ACTIVITIES
   Additions to fixed assets                               (2,424)                 (355)                 (2)                         (3,663)                            (6,444)
   Principal paid on bonds, loans, leases,
    and interfund loans                                                                                                                (295)                                 (295)
   Interest paid on bonds, loans, leases,
    and interfund loans                                                                                                                     (91)                              (91)
   Proceeds from sale of fixed assets                                                                                                   542                                  542
Net cash provided by (used in) capital
 and related financing                                     (2,424)                 (355)                 (2)                 0       (3,507)                    0       (6,288)

CASH FLOWS FROM INVESTING ACTIVITIES
   Interest on investments                                   315                      225              624              493             938                    84         2,679
Net cash provided by investing activities                    315                      225              624              493             938                    84         2,679
Net increase in cash and cash equivalents                    (931)                    476             5,797             723           3,524              1,268          10,857
Cash and equivalents at beginning of year                  5,287                  4,892              12,354           9,938          21,225              2,501          56,197
Cash and equivalents at end of year                       $4,356                 $5,368             $18,151         $10,661         $24,749             $3,769         $67,054
Classified as:
   Current assets                                         $4,356                 $5,368             $18,151         $10,661         $24,397             $3,769         $66,702
   Restricted assets                                                                                                                    352                                  352
Totals                                                    $4,356                 $5,368             $18,151         $10,661         $24,749             $3,769         $67,054

NON-CASH INVESTING, CAPITAL,
AND FINANCING ACTIVITIES
   Increase (decrease) in fair value of investments           $4                       $4               $7                  $9          $16                    $0            $40


See accompanying independent auditors' report.                                                                                                                      (continued)




                                                                                                                                                                    129
          Lee County, Florida
                                                                               Lee County, Florida
                                                               COMBINING STATEMENT OF CASH FLOWS
                                                                          INTERNAL SERVICE FUNDS
                                                                      For the Year Ended September 30, 2006
                                                                        (amounts expressed in thousands)


                                                                           Governmental       Self-Insurance   Self-Insurance                          Sheriff
                                                        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)                                      ($781)                 $327             $3,263           ($112)           $4,240             $2,389       $9,326


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

    Depreciation                                              1,028                    273                                   3          1,266                           2,570
    Other revenues                                                1                    217             177                   2                22                            419
    Other expenses                                                                                                                             (1)                            (1)
    (Increase) in accounts receivable                                                  (14)            (248)                                   (1)                          (263)
    (Increase) in due from other funds                                                 (18)                                  (1)                            (400)           (419)
    (Increase) decrease in due from other governments                                  (95)                                                   37                             (58)
    Decrease in inventories                                                                                                                   18                             18
    (Increase ) decrease in other assets                        (18)                                                     (68)                   2                            (84)
    Increase (decrease) in contracts and
      accounts payable                                         943                     (76)             (20)                 (1)          515                           1,361
    Increase (decrease) in accrued liabilities                    1                     (1)               5                  3                  8                            16
    Increase in due to other governments                                                71                2                  1                  4                            78
    Increase (decrease) in compensated absences                   4                      7               10                  5                (17)                             9
    Increase (decrease) in other liabilities                                                           836              373                                 (805)           404
Total adjustments                                             1,959                    364             762              317             1,853             (1,205)       4,050

Net cash provided by operating activities                   $1,178                  $691             $4,025            $205            $6,093             $1,184     $13,376




         130
                                                                                                                                          Lee County, Florida
                                                   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, 2006
                                             (dollars expressed in thousands)


                                                                                                 Governmental
                                                              Information Technology        Communications Network

                                                              Budget         Actual          Budget         Actual
        OPERATING REVENUES
         User fees                                              $13,364       $13,535          $1,433         $1,840
         Total operating revenues                                13,364        13,535           1,433          1,840
        OPERATING EXPENSES
         Salaries and wages                                          91            88             282            261
         Employee benefits                                           21            21              85             79
         Contractual services, materials, and supplies            9,305         9,295             112             31
         Utilities                                                3,118         3,117             238            187
         Repairs and maintenance                                    499           456             564            561
         Insurance                                                                                  1              1
         Insurance claims
         Other                                                      332           307             156             112
         Total operating expenses                                13,366        13,284           1,438           1,232
           Operating income (loss)                                   (2)          251              (5)            608
        NON - OPERATING REVENUES (EXPENSES)
         Interest revenue                                            90          342               93            247
         Interest expense                                           (10)
         Grants                                                                                   (87)           (85)
         Capital outlay                                          (3,664)       (2,424)           (517)          (355)
         Principal retirement
         Proceeds from disposal of PP&E
         Other revenues                                                               1           109            217
         Other expenses
        Total non - operating revenues (expenses)                (3,584)       (2,081)           (402)            24

        Income (loss) before operating transfers                 (3,586)       (1,830)           (407)           632

         Transfers in
         Transfers out
        Total transfers                                                0              0               0              0

        Change in net assets                                     (3,586)       (1,830)           (407)           632

        Total net assets - beginning                              4,395         6,626           4,916           4,032

        Total net assets - ending                                 $809         $4,796          $4,509         $4,664

        RECONCILIATION OF BUDGETARY BASIS TO GAAP
         Change in net assets, budgetary basis                                ($1,830)                          $632
          Add: Capital outlay                                                   2,424                            355
                Compensated absences
                Principal retirement
                Fixed asset transfers                                             400
                Fair market value adjustment                                        4                              4
          Less: Depreciation and amortization                                  (1,028)                          (273)
                Inventory
                Compensated absences                                                  (4)                            (8)
                Amortization of discount and issuance costs
                Net book value of PP&E disposed                                                                      (5)
                Claims payable reserve
        Change in net assets                                                     ($34)                          $705

        See accompanying independent auditors' report.                                                    (continued)

                                                                                                                           131
Lee County, Florida
                                               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, 2006
                                         (dollars expressed in thousands)


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

                                                       Budget          Actual          Budget             Actual
      OPERATING REVENUES
       User fees                                        $36,465          $37,224         $7,603             $8,257
       Total operating revenues                          36,465           37,224          7,603              8,257
      OPERATING EXPENSES
       Salaries and wages                                     440            431            333                293
       Employee benefits                                      136            136             90                 90
       Contractual services, materials, and supplies        3,384          3,249            681                613
       Utilities                                                6              5              5                  5
       Repairs and maintenance                                  1                             4                  3
       Insurance                                                                          3,950              3,949
       Insurance claims                                  30,488           29,231          5,144              2,973
       Other                                                121               62             77                 62
       Total operating expenses                          34,576           33,114         10,284              7,988
         Operating income (loss)                          1,889            4,110         (2,681)               269
      NON - OPERATING REVENUES (EXPENSES)
       Interest revenue                                      220            711              85               538
       Interest expense
       Grants                                                                                                  25
       Capital outlay                                           (3)              (2)
       Principal retirement
       Proceeds from disposal of PP&E
       Other revenues                                                       177                                    2
       Other expenses
      Total non - operating revenues (expenses)              217            886              85               565

      Income (loss) before operating transfers              2,106          4,996          (2,596)             834

       Transfers in                                         1,425          1,150
       Transfers out                                          (25)
      Total transfers                                       1,400          1,150                0                  0

      Change in net assets                                  3,506          6,146          (2,596)             834

      Total net assets - beginning                       12,311           13,537          9,861              7,607

      Total net assets - ending                         $15,817          $19,683         $7,265             $8,441

      RECONCILIATION OF BUDGETARY BASIS TO GAAP
       Change in net assets, budgetary basis                              $6,146                             $834
        Add: Capital outlay                                                    2
              Compensated absences
              Principal retirement
              Fixed asset transfers
              Fair market value adjustment                                       7                                  9
        Less: Depreciation and amortization                                                                        (3)
              Inventory
              Compensated absences                                              (10)                               (5)
              Amortization of discount and issuance costs
              Net book value of PP&E disposed
              Claims payable reserve                                        (837)                            (373)
      Change in net assets                                                $5,308                             $462

                                                                                                    (continued)
132
                                                                                                     Lee County, Florida
                                                     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, 2006
                                               (dollars expressed in thousands)


                                                                                            Total
                                                        Fleet Management                                 Variance
                                                                                                         Positive
                                                       Budget       Actual      Budget      Actual      (Negative)
      OPERATING REVENUES
       User fees                                        $11,911      $12,321     $70,776     $73,177        $2,401
       Total operating revenues                          11,911       12,321      70,776      73,177         2,401
      OPERATING EXPENSES
       Salaries and wages                                 1,340        1,212       2,486       2,285           201
       Employee benefits                                    508          455         840         781            59
       Contractual services, materials, and supplies      3,062        3,055      16,544      16,243           301
       Utilities                                             87           55       3,454       3,369            85
       Repairs and maintenance                            1,833        1,820       2,901       2,840            61
       Insurance                                             22           22       3,973       3,972             1
       Insurance claims                                                           35,632      32,204         3,428
       Other                                                206          195         892         738           154
       Total operating expenses                           7,058        6,814      66,722      62,432         4,290
         Operating income (loss)                          4,853        5,507       4,054      10,745         6,691
      NON - OPERATING REVENUES (EXPENSES)
       Interest revenue                                     129        1,035         617       2,873         2,256
       Interest expense                                     (91)         (84)       (101)        (84)           17
       Grants                                                             18         (87)        (42)           45
       Capital outlay                                    (5,609)      (3,663)     (9,793)     (6,444)        3,349
       Principal retirement                                (295)        (295)       (295)       (295)            0
       Proceeds from disposal of PP&E                       300          542         300         542           242
       Other revenues                                         1            4         110         401           291
       Other expenses                                        (1)          (1)         (1)         (1)            0
      Total non - operating revenues (expenses)          (5,566)      (2,444)     (9,250)     (3,050)        6,200

      Income (loss) before operating transfers              (713)      3,063      (5,196)      7,695        12,891


       Transfers in                                          401         387       1,826       1,537          (289)
       Transfers out                                        (401)       (387)       (426)       (387)           39
      Total transfers                                          0           0       1,400       1,150          (250)

      Change in net assets                                  (713)      3,063      (3,796)      8,845        12,641

      Total net assets - beginning                       20,778       21,537      52,261      53,339         1,078

      Total net assets - ending                         $20,065      $24,600     $48,465     $62,184       $13,719

      RECONCILIATION OF BUDGETARY BASIS TO GAAP
       Change in net assets, budgetary basis                          $3,063                  $8,845
        Add: Capital outlay                                            3,663                   6,444
              Compensated absences                                        17                      17
              Principal retirement                                       295                     295
              Fixed asset transfers                                      181                     581
              Fair market value adjustment                                16                      40
        Less: Depreciation and amortization                           (1,266)                 (2,570)
              Inventory                                                  (18)                    (18)
              Compensated absences                                                               (27)
              Amortization of discount and issuance costs                (46)                    (46)
              Net book value of PP&E disposed                           (179)                   (184)
              Claims payable reserve                                                          (1,210)
      Change in net assets                                            $5,726                 $12,167



                                                                                                                      133
Lee County, Florida
      This page is intentionally blank.




134
                                          Lee County, Florida
                      Fiduciary Funds




                                        135
Lee County, Florida
      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, other governments, and other funds.
      The County currently reports only agency funds.

      Town of Fort Myers Beach- To account for road and park impact fees that are collected on behalf
      of the Town of Ft. Myers Beach per an inter-local agreement.

      City of Bonita Springs- To account for road and park impact fees that are collected on behalf of
      the City of Bonita Springs per an inter-local agreement.

      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.




136
                                                                                            Lee County, Florida
                                    Lee County, Florida
                      COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                   FIDUCIARY FUNDS
                                  As of September 30, 2006
                                    (amounts expressed in thousands)


                                                                Agency Funds
                                                        Board Of County Commissioners
                                       Town of            City of       Bonita Springs
                                       Ft. Myers          Bonita            Road         Construction
                                         Beach            Springs        Impact Fees     Management
ASSETS
Cash and cash equivalents                        $194          $1,672          $13,891            $314
Receivables (net)
 Accounts
 Accrued Interest                                                                                       1
Due from other governments
 Total assets                                     194           1,672           13,891             315
LIABILITIES
Contracts and accounts payable                                                    913
Due to individuals
Due to other governments                          194           1,672           12,978
Bonds and deposits                                                                                 315
 Total liabilities                               $194          $1,672          $13,891            $315




See accompanying independent auditors' report.                                             (continued)




                                                                                                    137
Lee County, Florida
                                   Lee County, Florida
                     COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                  FIDUCIARY FUNDS
                                 As of September 30, 2006
                                 (amounts expressed in thousands)


                                                            Agency Funds
                                          Board Of County Commissioners
                                                                                           Clerk of
                                     Fire             School                               Circuit
                                  Impact Fees       Impact Fees       Cash Bonds            Court
ASSETS
Cash and cash equivalents                $1,342          $15,090           $3,620             $27,456
Receivables (net)
 Accounts                                                         4
 Accrued Interest                               7
Due from other governments
 Total assets                             1,349           15,094            3,620               27,456
LIABILITIES
Contracts and accounts payable                                 2                   7              498
Due to individuals                                           405
Due to other governments                  1,349           14,687                                 4,788
Bonds and deposits                                                          3,613               22,170
 Total liabilities                       $1,349          $15,094           $3,620             $27,456




                                                                                           (continued)




138
                                                                                   Lee County, Florida
                                     Lee County, Florida
                       COMBINING STATEMENT OF FIDUCIARY NET ASSETS
                                    FIDUCIARY FUNDS
                                   As of September 30, 2006
                                 (amounts expressed in thousands)


                                                                Agency Funds



                                                                      Tax
                                            Sheriff                 Collector         Total
ASSETS
Cash and cash equivalents                             $250               $10,052         $73,881
Receivables (net)
 Accounts                                                                        25            29
 Accrued Interest                                                                               8
Due from other governments                                                      343           343
 Total assets                                          250                10,420          74,261
LIABILITIES
Contracts and accounts payable                          82                                 1,502
Due to individuals                                     168                    607          1,180
Due to other governments                                                    9,813         45,481
Bonds and deposits                                                                        26,098
 Total liabilities                                    $250               $10,420         $74,261




                                                                                              139
 Lee County, Florida
                                         Lee County, Florida
                         STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                          AGENCY FUNDS
                                For the Year Ended September 30, 2006
                                     (amounts expressed in thousands)

                                      Beginning                                           Ending
                                       Balance          Additions       Deletions         Balance

Town of Ft. Myers Beach
 ASSETS
 Cash and cash equivalents                       $13           $227             $46             $194
   Total assets                                   13            227              46              194
 LIABILITIES
 Due to other governments                         13            247                 66            194
   Total liabilities                              13            247                 66            194

City of Bonita Springs
 ASSETS
 Cash and cash equivalents                   1,739            8,249           8,316             1,672
 Receivables (net)                               8                                8                 0
   Total assets                              1,747            8,249           8,324             1,672
 LIABILITIES
 Due to other governments                    1,747           18,147          18,222             1,672
   Total liabilities                         1,747           18,147          18,222             1,672

Bonita Springs Road Impact Fees
 ASSETS
 Cash and cash equivalents                   6,710           32,377          25,196            13,891
   Total assets                              6,710           32,377          25,196            13,891
 LIABILITIES
 Contracts and accounts payable                  1            5,336           4,424               913
 Due to other governments                    6,709            6,467             198            12,978
   Total liabilities                         6,710           11,803           4,622            13,891

Construction Management
 ASSETS
 Cash and cash equivalents                          0            314                              314
 Receivables (net)                                  0              1                                1
   Total assets                                    0            315                  0            315
 LIABILITIES
 Bonds and deposits                                0             315                             315
   Total liabilities                              $0            $315                $0          $315

See accompanying independent auditors' report.                                             (continued)




140
                                                                                Lee County, Florida
                                         Lee County, Florida
                         STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                          AGENCY FUNDS
                                For the Year Ended September 30, 2006
                                    (amounts expressed in thousands)

                                    Beginning                                        Ending
                                     Balance           Additions       Deletions     Balance

Fire Impact Fees
 ASSETS
 Cash and cash equivalents                $2,221            $6,459          $7,338       $1,342
 Receivables (net)                             7                                              7
   Total assets                            2,228             6,459           7,338        1,349
 LIABILITIES
 Due to other governments                  2,228            14,847          15,726        1,349
   Total liabilities                       2,228            14,847          15,726        1,349

School Impact Fees
 ASSETS
 Cash and cash equivalents                16,921            55,921          57,752       15,090
 Receivables (net)                            37                 4              37            4
 Due from other governments                1,717                             1,717            0
   Total assets                           18,675            55,925          59,506       15,094
 LIABILITIES
 Contracts and accounts payable                0            57,296          57,294            2
 Due to individuals                          200               258              53          405
 Due to other governments                 18,475            53,695          57,483       14,687
   Total liabilities                      18,675           111,249         114,830       15,094

Cash Bonds
 ASSETS
 Cash and cash equivalents                 3,623               580             583        3,620
   Total assets                            3,623               580             583        3,620
 LIABILITIES
 Contracts and accounts payable               27               562             582            7
 Bonds and deposits                        3,596               580             563        3,613
   Total liabilities                       3,623             1,142           1,145        3,620

Clerk of Circuit Court
 ASSETS
 Cash and cash equivalents                38,670           454,291         465,505       27,456
   Total assets                           38,670           454,291         465,505       27,456
 LIABILITIES
 Contracts and accounts payable             387             93,814          93,703          498
 Due to other governments                 7,257            280,926         283,395        4,788
 Bonds and deposits                      31,026             74,361          83,217       22,170
   Total liabilities                    $38,670           $449,101        $460,315      $27,456
                                                                                     (continued)




                                                                                               141
 Lee County, Florida
                                     Lee County, Florida
                     STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                                      AGENCY FUNDS
                            For the Year Ended September 30, 2006
                                  (amounts expressed in thousands)

                                  Beginning                                               Ending
                                   Balance           Additions       Deletions            Balance

Sheriff
 ASSETS
 Cash and cash equivalents               $194             $4,465          $4,409                $250
   Total assets                           194              4,465           4,409                 250
 LIABILITIES
 Contracts and accounts payable            36                  82             36                  82
 Due to individuals                       158               3,901          3,891                 168
   Total liabilities                      194               3,983          3,927                 250

Tax Collector
 ASSETS
 Cash and cash equivalents               8,349          1,344,296      1,342,593               10,052
 Investments                               780                               780                    0
 Receivables (net)                          16                 92             83                   25
 Due from other governments                393                405            455                  343
   Total assets                          9,538          1,344,793      1,343,911               10,420
 LIABILITIES
 Due to individuals                        790            33,274          33,457                  607
 Due to other governments                8,748           892,360         891,295                9,813
   Total liabilities                     9,538           925,634         924,752               10,420

Total
 ASSETS
 Cash and cash equivalents              78,440          1,907,179      1,911,738               73,881
 Investments                               780                               780                    0
 Receivables (net)                          68                 97            128                   37
 Due from other governments              2,110                405          2,172                  343
   Total assets                         81,398          1,907,681      1,914,818               74,261
 LIABILITIES
 Contracts and accounts payable           451             157,090        156,039               1,502
 Due to individuals                     1,148              37,433         37,401               1,180
 Due to other governments              45,177           1,266,689      1,266,385              45,481
 Bonds and deposits                    34,622              75,256         83,780              26,098
   Total liabilities                  $81,398          $1,536,468     $1,543,605             $74,261




  142
                                                                                 Lee County, Florida
                      Statistical Section




                                            143
Lee County, Florida
                                           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.




144
                                                                                                          Lee County, Florida
                                                                                                                Lee County, Florida
                                                                                                                   SCHEDULE 1
                                                                                                                    NET ASSETS
                                                                                                               Last Five Fiscal Years
                                                                                                               (dollars in thousands)


                                                                                                      2002                        2003                        2004                        2005         2006*
                      Governmental Activities




Lee County, Florida
                         Invested in capital assets, net of related debt                                $538,217                     $600,096                    $670,833                  $769,454      $974,518
                         Restricted for:
                           Capital projects                                                               179,728                     214,202                     220,591                   237,428       346,005
                           Debt service                                                                    21,334                      21,640                      22,453                    25,742        19,567
                           Claibourne and Foulds Trust                                                          1                           1                           1
                         Unrestricted                                                                     240,731                     234,752                     284,293                    357,515      449,732
                       Governmental activities net assets                                                 980,011                   1,070,691                   1,198,171                  1,390,139    1,789,822

                      Business-type Activities
                         Invested in capital assets, net of related debt                                  309,741                     422,635                     540,009                   657,657       733,834
                         Restricted for:
                           Capital projects                                                                92,091                      93,338                      75,726                     77,919       92,848
                           Debt service                                                                    69,935                      54,455                      35,677                     30,965       30,706
                           Renewal and replacement                                                         14,884                      15,799                      16,924                     23,893       24,079
                         Unrestricted                                                                     182,777                     198,513                     241,545                    228,357      246,428
                       Business-type activities net assets                                                669,428                     784,740                     909,881                  1,018,791    1,127,895

                      Primary Government
                          Invested in capital assets, net of related debt                                 847,958                   1,022,731                   1,210,842                  1,427,111    1,708,352
                          Restricted for:
                            Capital projects                                                             271,819                      307,540                     296,317                   315,347       438,853
                            Debt service                                                                  91,269                       76,095                      58,130                    56,707        50,273
                            Renewal and replacement                                                       14,884                       15,799                      16,924                    23,893        24,079
                            Claibourne and Foulds Trust                                                        1                            1                           1
                          Unrestricted                                                                   423,508                      433,265                     525,838                    585,872      696,160
                        Total primary government net assets                                           $1,649,439                   $1,855,431                  $2,108,052                 $2,408,930   $2,917,717



                       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. See Note VII Other Information




             145
                         on page 75 for more information.
                                                 Lee County, Florida
                                                    SCHEDULE 2
                                              CHANGES IN NET ASSETS
                                                Last Five Fiscal Years
                                                (dollars in thousands)


                                               2002               2003        2004             2005             2006 *
Expenses
  Governmental Activities:
     General government                         $110,508           $107,961    $123,068         $130,947         $151,914
     Public safety                               120,421            127,463     150,499          174,137          197,743
     Physical environment                          8,725              8,754      14,619           16,262           22,794
     Transportation                               31,732             54,173      41,246           38,794           45,934
     Economic environment                         13,829             18,244      17,418           19,109           21,649
     Human services                               14,401             19,143      16,015           19,155           20,751
     Culture and recreation                       43,661             49,208      57,436           61,329           63,490
     Interest on long-term debt                   13,441             12,450      11,925           12,763           11,852
   Total governmental activities expenses        356,718            397,396     432,226          472,496          536,127

 Business-type Activities:
    Airport                                       40,686             50,787      52,775           54,242           94,532
    Water and wastewater                          43,722             51,083      65,986           72,222           84,408
    Transit                                       11,354             12,646      14,236           16,855           18,652
    Transportation facilities                     21,956             23,709      21,420           22,887           23,779
    Solid waste                                   46,344             47,993      67,278           52,799           61,196
  Total business-type activities expenses        164,062            186,218     221,695          219,005          282,567
  Total primary government expenses             $520,780           $583,614    $653,921         $691,501         $818,694

Program Revenues
  Governmental Activities:
   Charges for services:
     General government                          $34,241            $41,107     $48,446          $69,135          $76,869
     Public safety                                23,756             24,969      29,748           41,645           47,394
     Physical environment                          1,503              1,550       2,215            2,621            3,309
     Transportation                               10,523              2,547       2,621            3,470            3,091
     Economic environment                                                 3
     Human services                                1,114              1,299       1,926            2,302            2,705
     Culture and recreation                        2,708              2,819       2,886            3,248            3,599
   Operating grants and contributions             34,194             37,274      49,073           45,473           43,793
   Capital grants and contributions               20,929             12,200      15,864           17,136           18,680
   Governmental activities program revenues      128,968            123,768     152,779          185,030          199,440

 Business-type Activities:
  Charges for services:
    Airport                                       44,043             50,838      60,874           80,191           99,430
    Water and wastewater                          46,313             52,574      62,729           66,880           70,670
    Transit                                        1,511              1,874       2,031            2,520            3,074
    Transportation facilities                     30,247             31,973      33,423           43,846           41,192
    Solid waste                                   53,963             56,642      62,122           62,479           76,510
  Operating grants and contributions               4,673              6,487      20,941            4,763            6,310
  Capital grants and contributions                32,566             62,898      80,444           46,128           59,161
  Business-type activities program revenues      213,316            263,286     322,564          306,807          356,347
  Total primary government program revenues     $342,284           $387,054    $475,343         $491,837         $555,787

                                                                                                                (continued)




         146
                                                                                          Lee County, Florida
                                                                                       Lee County, Florida
                                                                                          SCHEDULE 2
                                                                                    CHANGES IN NET ASSETS
                                                                                      Last Five Fiscal Years
                                                                                      (dollars in thousands)


                                                                                      2002                      2003                      2004                       2005                    2006 *
Net (Expense) Revenue*
 Governmental activities                                                              ($227,750)                ($273,628)                 ($279,447)                ($287,466)               ($336,687)
 Business-type Activities                                                                49,254                    77,068                    100,869                    87,802                   73,780
   Total primary government net expense                                               ($178,496)                ($196,560)                 ($178,578)                ($199,664)               ($262,907)

General Revenues and Other Changes in Net Assets
 Governmental Activities:
     Taxes
       Property taxes                                                                  $216,050                  $248,411                   $289,206                  $316,947                $377,567
       Gas taxes                                                                         15,992                    16,547                     18,060                    19,319                  20,124
       Tourist taxes                                                                     10,834                    11,089                     12,318                    11,603                  18,728
       Other taxes                                                                       11,380                    13,026                     12,559                    15,489                  18,354
     Impact fees                                                                         24,821                    18,365                     20,434                    30,954                  68,829
     Unrestricted grants and contributions                                               31,817                    33,387                     45,103                    44,608                  62,618
     Investment earnings                                                                 15,553                    11,478                      8,169                    21,802                  47,806
     Gain on sale of capital assets
     Miscellaneous                                                                        17,922                    15,888                    18,731                    24,843                   24,851
     Transfers                                                                             7,522                    (3,705)                  (17,653)                   (6,131)                  (4,464)
   Total governmental activities general revenues and transfers                          351,891                   364,486                   406,927                   479,434                  634,413

  Business-type Activities:
     Property taxes                                                                          2,796                   1,916                       1,697                    2,708                   3,247
     Investment earnings                                                                     8,171                   5,922                       4,228                   10,382                  21,788
     Gain on sale of capital assets                                                            316                      36
     Miscellaneous                                                                           1,265                     958                        694                       1,887                 5,825
     Special Item-Assumption of GES net assets                                                                      25,707
     Transfers                                                                            (7,522)                    3,705                     17,653                       6,131                 4,464
   Total Business-type activities general revenues, special
     item, and transfers                                                                     5,026                  38,244                     24,272                    21,108                  35,324
   Total primary government general revenues,
     special item, and transfers                                                       $356,917                  $402,730                   $431,199                  $500,542                $669,737


Change in Net Assets
 Governmental activities                                                               $124,141                   $90,858                   $127,480                  $191,968                $297,726
 Business-type activities                                                                54,280                   115,312                    125,141                   108,910                 109,104
   Total primary government                                                            $178,421                  $206,170                   $252,621                  $300,878                $406,830




*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. See Note VII Other Information on page 75 for more information.




                                                                                                                                                                                             147
                Lee County, Florida
                                                      Lee County, Florida
                                                         SCHEDULE 3
                                          FUND BALANCES of GOVERNMENTAL FUNDS
                                                     Last Five Fiscal Years
                                                (amounts expressed in thousands)

                                                 2002              2003              2004               2005               2006*

General Fund
  Reserved:
     Advances                                                                                                                $45,960
     Inventory                                       $138              $144              $156              $168                  186
     Unreserved                                    87,151            67,173            91,500           144,231              153,642
Total General Fund                                $87,289           $67,317           $91,656          $144,399             $199,788



All Other Governmental Funds
  Reserved:
     Advances                                                        $1,700            $1,700             $1,700
     Inventory                                     $1,457             1,321             1,854              2,170              $2,291
     Debt Service                                  21,078            21,365            22,173             25,445              24,582
     Claibourne & Foulds Trust                          1                 1                 1
  Unreserved:
     Special Revenue Funds                        146,861           165,200           187,079           197,407              318,111
     Capital Projects Funds                       158,593           188,748           245,803           256,030              257,774
     Debt Service Funds                             8,357             8,481             4,750             5,238                4,966
Total All Other Governmental Funds               $336,347          $386,816          $463,360          $487,990             $607,724

*
    Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years.
    See Note VII Other Information on page 75 for more information.




      148
                                                                                                          Lee County, Florida
                                                              Lee County, Florida
                                                                 SCHEDULE 4
                                            CHANGES IN FUND BALANCES of GOVERNMENTAL FUNDS
                                                             Last Five Fiscal Years
                                                        (amounts expressed in thousands)

                                                                                                                                                                         *
                                                                                2002                2003                 2004                 2005                2006
         Revenues
            Taxes                                                              $254,254            $289,073             $332,143            $363,358             $434,782
            Licenses and permits                                                  9,641              10,772               13,560              19,249               18,660
            Intergovernmental                                                    67,747              74,653               95,934              96,031              117,215
            Charges for services                                                 49,349              53,902               64,906              82,876               92,684
            Fines and forfeitures                                                 2,634               3,492                3,286               1,533                1,749
            Impact fees                                                          24,758              18,365               20,434              30,954               68,830
            Special assessments                                                   2,475               2,129                3,120               4,044                2,491
            Miscellaneous                                                        31,982              32,589               29,694              54,055               74,102
                Total revenues                                                  442,840             484,975              563,077             652,100              810,513

         Expenditures
            Current
               General government                                                95,236              88,890              103,334              105,547             119,119
               Public safety                                                    114,462             121,566              141,274              165,699             189,841
               Physical environment                                               8,283               7,899               13,565               15,119              22,357
               Transportation                                                    23,300              32,611               32,701               29,797              37,127
               Economic environment                                              13,503              17,589               17,309               19,025              21,509
               Human services                                                    13,745              15,307               15,410               18,501              20,155
               Culture and recreation                                            38,043              43,633               53,081               56,474              58,049
            Capital outlay                                                       67,104              84,702               90,935              126,643             232,694
            Debt service
               Principal retirement                                              17,865               19,884              23,125               25,058               20,221
               Interest and fiscal charges                                       13,317               12,421              10,905               11,936               12,137
               Bond issuance costs                                                                                         1,872                  422
                   Total expenditures                                           404,858             444,502              503,511              574,221             733,209
         Excess (deficiencies) of revenues
            over (under) expenditures                                            37,982               40,473              59,566               77,879               77,304

         Other Financing Sources (Uses)
            Transfers in                                                         88,386             111,649               94,281               95,542             136,592
            Transfers out                                                       (85,746)           (124,222)            (111,224)            (101,319)           (142,188)
            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
            Payments to refunding escrow agent                                                                           (55,440)             (27,622)
               Total other financing sources (uses)                                4,547              (9,798)             41,317                 (506)              (4,137)

         Net change in fund balances                                            $42,529             $30,675             $100,883              $77,373             $73,167

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

* Fiscal year 2006 reflects a cumulative prior period adjustment for impact fees that were treated as deferred revenues in prior years. See Note VII Other Information
  on page 75 for more information.




                                                                                                                                                                          149
        Lee County, Florida
                                                                                                            Lee County, Florida




            150
                                                                                                               SCHEDULE 5
                                                                                       Assessed Value and Estimated Actual Value of Taxable Property
                                                                                                          Last Seven Fiscal Years
                                                                                                           (dollars in thousands)

                                                                                                                              Less:                                                                Assessed Value
                                                                Real Property                                              Tax Exempt       Total Taxable     Total Direct   Estimated Actual     as a Percentage of
                          Fiscal Year   Residential Property    Commercial Property    Other       Personal Property       Real Property    Assessed Value     Tax Rate       Taxable Value         Actual Value1

                             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%

                      Source: Lee County Property Appraiser
                      1
                          Includes tax-exempt property




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

                                                                                                                                   1997              1998               1999             2000               2001           2002             2003                2004        2005          2006


                                                                      Operating millage                                           4.4751            4.4751             4.4751           4.4751             4.3277         4.3277            4.3277             4.3277      4.2610        3.9332
                                                                      Debt service millage                                        0.0000            0.0000             0.0000           0.0000             0.0000         0.0000            0.0000             0.0000      0.0000        0.0000




Lee County, Florida
                                                                      Capital improvements millage                                0.2720            0.7720             0.8532           1.0124             1.0124         1.0124            1.0124             1.0124      1.0124        1.0124




                                       Lee County
                                                                      Total Lee County millage                                    4.7471            5.2471             5.3283           5.4875             5.3401         5.3401            5.3401             5.3401      5.2734        4.9456

                                                                      School District                                             9.3480            9.2450             9.3060           8.9410             8.7980         8.4780            8.5720             8.3460      8.0650        7.8820

                                                                      Operating millage                                           5.4298            5.4298             5.9873           5.9873             5.9873         5.8033            5.8033             5.6831      5.5287        5.2787
                                                                      Debt service millage                                        0.8376            0.8376             0.9056           0.8605             0.7914         0.7144            0.5712             0.4218      0.2311        0.1119




                                       Cape Coral
                                                                      Total Cape Coral millage                                    6.2674            6.2674             6.8929           6.8478             6.7787         6.5177            6.3745             6.1049      5.7598        5.3906

                                                                      Operating millage                                           2.1182            2.0693             2.0126           1.9181             1.7291         1.7291            1.7291             1.7291      2.5000        2.4801
                                                                      Debt service millage                                        0.0000            0.0000             0.3386           0.3638             0.3279         0.2607            0.4901             0.3870      0.2893        0.3218




                                       Sanibel

                      Municipalities
                                                                      Total Sanibel millage                                       2.1182            2.0693             2.3512           2.2819             2.0570         1.9898            2.2192             2.1161      2.7893        2.8019

                                                                      Fort Myers                                                  5.6600            5.7360             5.7816           5.7820             5.7820         7.7816            7.7816             7.7816      7.2100        7.2100
                                                                      Fort Myers Beach                                            1.0604            1.0961             1.0961           1.0961             1.0961         1.0400            1.0400             1.0000      0.8500        0.7498




                                       Other
                                                                                         1
                                                                      Bonita Springs                                              0.0000            0.0000             0.0000           0.0000             1.2200         1.2200            1.0885             0.9976      0.9976        0.9976

                                                                      Total municipalities millage                               15.1060           15.1688             16.1218          16.0078           16.9338        18.5491           18.5038             18.0002    17.6067       17.1499

                                                                      South Florida Water Management Dist.                        0.6720            0.6970             0.6970           0.6970             0.6970         0.6970            0.6970             0.6970      0.6970        0.6970
                                                                      Lee County Hyacinth Control                                 0.0396            0.0392             0.0392           0.0360             0.0358         0.0358            0.0327             0.0295      0.0300        0.0295
                                                                      Lee County Mosquito Control                                 0.3970            0.3928             0.3928           0.3792             0.3595         0.3595            0.3294             0.2984      0.2720        0.2247
                                                                      West Coast Inland Waterway                                  0.0189            0.0300             0.0400           0.0400             0.0400         0.0400            0.0400             0.0400      0.0400        0.0400
                                                                      MSTU (Unincorporated)                                       1.1604            1.1604             1.1604           1.2114             1.2114         1.2114            1.2114             1.2114      1.2114        1.0028
                                                                      Lee County Library                                          0.5755            0.5780             0.5755           0.9630             0.9630         0.9630            0.9630             0.9630      0.6055        0.6055
                                                                      Total special districts millage                             2.8634            2.8974             2.9049           3.3266             3.3067         3.3067            3.2735             3.2393      2.8559        2.5995




                                       Lee County Special Districts
                                                                                                 2
                                                                      Other special districts                                 .0364-5.7281       .0057-5.3648      .0090-5.1424       .1708-6.000       .0079-6.000    .0509-6.000       .0044-6.000       .0438-6.000   .0011-6.000   .0012-6.000
                                                                      Total direct and overlapping rates3                        32.0635           32.5583             33.6610          33.7629           34.3796        35.6739           35.6894             34.9266    33.8020       32.5780

                                                                      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).




             151
                                                                      Source: Lee County Budget Office
                                                    Lee County, Florida
                                                       SCHEDULE 7
                                            PRINCIPAL PROPERTY TAXPAYERS
                                              Current Year and Nine Years Ago
                                                   (dollars in thousands)




                                                       2006                                       1997
                                                               Percentage of                              Percentage of
                                        Taxable                Total Taxable    Taxable                   Total Taxable
                                        Assessed                 Assessed       Assessed                    Assessed
Taxpayer                                 Value       Rank         Value          Value           Rank        Value

Christian & Missionary Alliance, Inc.     $125,589     1          0.343%           $28,286        7          0.127%
Edison Mall Business Trust                  88,151     2          0.240%            91,369        1          0.411%
Bay Colony Gateway, Inc.                    83,688     3          0.228%
K Hovnanian First Homes LLC                 59,979     4          0.163%
Centex Homes                                57,842     5          0.158%
Bell Tower Shops LLC                        55,754     6          0.152%
Long Bay Partners LLC                       54,121     7          0.148%
WCI Communities, Inc.                       50,633     8          0.138%
Miromar Outlet West LLC                     50,227     9          0.137%
US Home Corporation                         49,379     10         0.135%
Avatar Properties, Inc.                                                             78,090         2         0.352%
Merry Land & Investment Co., Inc.                                                   46,708         3         0.210%
Bonita Bay Properties, Inc.                                                         39,804         4         0.179%
Gatorland Vistas, Inc.                                                              33,635         5         0.151%
Aetna Life Insurance Company                                                        33,049        6          0.149%
South Seas Resort                                                                   28,132        8          0.127%
Mariner Services Corporation                                                        25,858        9          0.116%
Suncoast Investment Group, LTD                                                      24,783        10         0.112%

Total                                     $675,363                1.842%          $429,714                   1.934%



Source: Lee County Property Appraiser




        152
                                                                                             Lee County, Florida
                                                                                      Lee County, Florida
                                                                                         SCHEDULE 8
                                                                            PROPERTY TAX LEVIES AND COLLECTIONS
                                                                                      Last Ten Fiscal Years
                                                                                     (dollars in thousands)




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

                                       1997                 $128,910            $125,984        97.73%                    $206           $126,190         97.89%
                                       1998                  145,036             142,690        98.38%                     385            143,075         98.65%
                                       1999                  155,025             149,167        96.22%                     742            149,909         96.70%
                                       2000                  181,814             174,167        95.79%                     831            174,998         96.25%
                                       2001                  192,595             184,800        95.95%                     653            185,453         96.29%
                                       2002                  219,911             211,175        96.03%                     592            211,767         96.30%
                                       2003                  255,095             244,304        95.77%                     632            244,936         96.02%
                                       2004                  297,850             285,130        95.73%                     247            285,377         95.81%
                                       2005                  326,026             312,673        95.90%                       88           312,761         95.93%
                                       2006                  388,369             372,541        95.92%                     -              372,541         95.92%


                      Sources:      Lee County Tax Collector

                               1
                      Notes:       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.




             153
                                                                                                                     Lee County, Florida
                                                                                                                        SCHEDULE 9




            154
                                                                                                           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
                                             1                                                                                         2                  3
                      Year             Bonds             Bonds           Tax Bonds        Participation          Total            Value            Capita           Bonds               Paper              Notes         Leases

                      1997               $172,367         $76,610               $10,810          $26,040         $285,827         1.07%             0.71                 $9,820              $4,655             $154          $1,628
                      1998                165,993          73,345                10,485           23,910          273,733         0.99%             0.66                  8,210                                4,265           1,165
                      1999                160,803          69,895                10,140           22,740          263,578         0.91%             0.62                  6,750               2,410            4,004           9,615
                      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



                                                                                            Business-Type Activities Debt
                                       Port              Solid          Transportation       Water and     Sewer District
                                      Authority          Waste             Facilities       Wastewater        General                                                                    Total          Percentage
                      Fiscal          Revenue           Revenue            Revenue           Revenue        Obligation         Commercial                           Capital             Primary         of Personal       Per
                                                                                                                                                                                                 4               3              3
                      Year             Bonds             Bonds              Bonds             Bonds            Bonds             Paper             Notes            Leases            Government         Income          Capita

                      1997                $61,745        $202,915              $173,920          $27,085           $7,400                             $43,145                              $818,294       7.95%            2.03
                      1998                110,085         198,965               171,945           23,825            6,520             $9,500           13,215                               821,428        7.18%           1.98
                      1999                105,375         193,850               168,795          154,910            5,590              7,900           13,694                               936,471        8.47%           2.19
                      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


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

                               1
                                   Excludes accreted interest of $6,881,000.
                               2
                                   See Schedule 5 for property value data.
                               3
                                   See Schedule 11 for personal income and population data for 1997 through 2006. 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..




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


                                                                         Passenger Facility Charge Revenue Bonds 1                                                                                                        Port Authority Line of Credit3
                                     Passenger                                                                                                                               Page Field
                                      Facility              Less:                 Net                                                                                      General Aviation                  Less:               Net
                      Fiscal          Charge              Operating             Available                     Debt Service                                                     Airport                     Operating           Available                Debt Service
                                                                   2                                                                                                                                                2
                      Year           Revenues             Expenses              Revenues               Principal         Interest               Coverage                      Revenues                     Expenses            Revenue            Principal         Interest     Coverage




Lee County, Florida
                      1997
                      1998                  $6,098                 n/a                  $6,098                 $995             $1,229             2.74
                      1999                   6,616                 n/a                   6,616                1,640              2,422             1.63
                      2000                   6,724                 n/a                   6,724                1,705              2,362             1.65
                      2001                   7,236                 n/a                   7,236                1,770              2,293             1.78
                      2002                   6,488                 n/a                   6,488                1,845              2,221             1.60
                      2003                   7,930                 n/a                   7,930                1,920              2,143             1.95
                      2004                  12,878                 n/a                  12,878                2,005              2,062             3.17
                      2005                  15,615                 n/a                  15,615                2,090              1,974             3.84                                 $7,129                   $5,853             $1,276                                $59      21.63
                      2006                  15,567                 n/a                  15,567                2,185              1,880             3.83                                  8,026                    6,974              1,052                 $230           317       1.92



                                                                              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
                      Year            Revenues            Expenses              Revenues               Principal            Interest            Coverage                       Revenues8                   Expenses2            Revenue           Principal         Interest     Coverage

                                                      4                   5
                      1997                 $33,016            $19,573                 $13,443               $5,495              $4,140             1.40                                $48,685                  $24,636            $24,049              $2,850        $13,396       1.48
                                                      4                   5
                      1998                  34,204             21,555                   12,649                2,890               3,770            1.90                                 52,574                   26,329             26,245                 3,950       13,189       1.53
                                                      4                   5
                      1999                  36,831             22,525                   14,306                3,070               3,589            2.15                                 52,418                   26,640             25,778                 5,115       12,908       1.43
                                                      6                   7
                      2000                  36,951             21,290                   15,661                3,275               3,386            2.35                                 56,667                   27,101             29,566                 5,950       12,558       1.60
                                                      6                   7
                      2001                  37,713             28,273                    9,440                3,495               3,164            1.42                                 60,204                   29,335             30,869                 6,755       12,149       1.63
                                                      6                   7
                      2002                  34,848             26,774                    8,074                3,740               2,219            1.35                                 58,264                   30,275             27,989                 7,640        9,937       1.59
                                                      6                   7
                      2003                  39,656             29,995                    9,661                4,744               1,644            1.51                                 60,168                   30,394             29,774                 9,380        8,308       1.68
                                                      6                   7                                                                                                                                                9
                      2004                  43,184             31,209                   11,975                4,871               1,518            1.87                                 64,674                   33,905             30,769              10,915          7,882       1.64
                                                      6                   7                                                                                                                                                9
                      2005                  61,051             33,902                   27,149                5,410             13,648             1.42                                 67,350                   35,659             31,691              11,390          7,369       1.69
                                                      6                   7
                      2006                  85,185             47,573                   37,612                5,670             20,291             1.45                                 82,697                   44,399             38,298              11,940          6,918       2.03

                                   Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.
                               1
                                   Ten years of data are not provided as bonds were issued in 1998.
                               2
                                   As defined by bond resolutions - Generally, current operating expense which doesn't include interest expense, depreciation or amortization expense.
                               3
                                   Ten years of data are not provided as the Line of Credit was issued in 2004.
                               4
                                   As defined by bond resolutions - Generally, all revenues generated from the operation of all County airports, with the exception of passenger facility charges and grants.
                               5
                                   As defined by bond resolutions - Generally, current operating expense of all County airports which does not include interest expense, depreciation, 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.
                               7
                                   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, or rebates.
                               8
                                   As defined by bond resolutions - Generally, all revenues generated from the operation of the Waste - to - Energy Facility, the landfill, and the collection services.
                               9




             155
                                   Excludes expense related to hurricane damage which is treated in the financial statements as non-operating expense.                                                                                                                          (continued)
                                   Source: Lee County Clerk of Courts Finance Department
                                                                                                                                             Lee County, Florida
                                                                                                                                                SCHEDULE 10
                                                                                                                                     PLEDGED REVENUE BOND COVERAGE




            156
                                                                                                                                             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

                      1997                 $31,518           $12,188                 $19,330              $6,885              $1,868            2.21                            $21,189                  $4,662             $16,527                 $1,855           $10,138           1.38
                      1998                  32,898            15,074                  17,824               4,140               1,583            3.11                             28,930                   7,914              21,016                  1,975            10,035           1.75
                      1999                  37,982            18,470                  19,512               4,195               1,395            3.49                             29,082                   6,405              22,677                  3,150             9,920           1.74
                      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
                                                                                                                                                                                                                                                              5                 5               5
                      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



                                                             Florida Department of Environmental Protection Loan                                                                        Florida Department of Transportation State Infrastructure Bank (SIB) Loan4
                                     Water and             Less:            Net                                                                                       Transportation              Less:              Net
                      Fiscal         Wastewater          Operating       Available               Debt Service                                                            Facilities             Operating         Available                 Debt Service
                                                                                                                                                                                    3
                      Year           Revenues1           Expenses2             Revenues              Principal            Interest           Coverage                    Revenues               Expenses2          Revenue            Principal         Interest                     Coverage

                      1997                 $31,518           $12,188                 $19,330                $392                $329           26.81
                      1998                  32,898            15,074                  17,824                 406                 314           24.76
                      1999                  37,982            18,470                  19,512                 421                 300           27.06
                      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                            $30,630                  $6,911             $23,719                   $640                             37.06
                      2003                  55,665            27,545                  28,120                 486                 235           39.00                             32,297                   9,193              23,104                  1,140                             20.27
                      2004                  65,229            34,231                  30,998                 504                 217           42.99                             33,937                   8,453              25,484                                                     n/a
                      2005                  71,495            42,108                  29,387                 522                 199           40.76                             45,164                   9,856              35,308                  1,406                             25.11
                      2006                  78,990            50,699                  28,291                 541                 180           39.24                             44,549                  10,808              33,741                  1,406                             24.00

                                   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. The pledge of these revenues to the SIB loan is
                                   subordinate to the revenue bonds pledge.
                               4
                                   Ten years of data are not provided as loan was issued in 2001 and repayment began in 2002.
                               5
                                   Debt service amount of $9,407 and coverage ratio of 3.75 were incorrectly stated in 2005 CAFR due to a mathematical error.


                                   Source: Lee County Clerk of Courts Finance Department




Lee County, Florida
                                                                                       Lee County, Florida
                                                                                         SCHEDULE 11
                                                                              DEMOGRAPHIC AND ECONOMIC STATISTICS
                                                                                       Last Ten Fiscal Years



                                                                Total                                                                                    Unemployment Rates
                                                                                                                                                                         4
                                                                                                                                                            (Percentage)




Lee County, Florida
                                                             Personal           Per Capita
                                                              Income            Personal            Median             School
                                                    1                                   2                2                      3
                      Year             Population         (in thousands)         Income              Age             Enrollment              County              State        National

                      1997               402,838           $10,299,359            $25,567            43.6               53,523                3.4                 4.8           4.9
                      1998               413,952           11,441,633             27,640             43.9               54,710                3.0                 4.3           4.5
                      1999               427,180           11,051,147             25,870             44.6               56,919                2.6                 3.9           4.2
                      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

                                   1
                        Sources:     Office of Economic and Demographic Research. Population for 2006 is projected.
                                   2
                                     Woods and Poole Economics, Inc, MSA Profile.
                                   3
                                     District School Board of Lee County.
                                   4
                                     Florida Agency for Workforce Innovation, Office of Labor Market Statistics, and U.S. Department of Labor, Bureau of Labor Statistics.




             157
                                                    Lee County, Florida
                                                       SCHEDULE 12
                                                 PRINCIPAL EMPLOYERS
                                              Current Year and Nine Years Ago




                                                           2006                                           1997
                                                                    Percentage of                                Percentage of
                                                                    Total County                                 Total County
Employer                                 Employees      Rank        Employment       Employees      Rank         Employment

Lee County School Board                    10,930          1           4.72%           7,200          1              n/a
Lee Memorial Health System                  8,000          2           3.45%           4,500          2              n/a
Publix Super Markets                        4,153          3           1.79%           3,005          4              n/a
Lee County Government                       2,481          4           1.07%           1,936          5              n/a
Wal-Mart Corporation                        2,189          5           0.94%           1,589          7              n/a
City of Cape Coral                          1,948          6           0.84%           1,368          8              n/a
Lee County Sheriff's Office                 1,422          7           0.61%
Bonita Bay Group                            1,400          8           0.60%
U.S. Postal Service                         1,397          9           0.60%
Florida Gulf Coast University               1,040         10           0.45%
Columbia/HCA                                                                           3,500          3              n/a
South Seas Resort Co.                                                                  1,900          6              n/a
Department of Children and Families                                                    1,213          9              n/a
Winn-Dixie Stores, Inc.                                                                1,200         10              n/a

Total                                       34,960                     15.07%           27,411                       n/a



Source: Lee County Office of Economic Development, and Florida Agency for Workforce Innovations




    158
                                                                                                  Lee County, Florida
                                               Lee County, Florida
                                                 SCHEDULE 13
                                  GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
                                               Last Six Fiscal Years


                                                  2001         2002          2003         2004          2005          2006

Function/Program
   Governmental activities:
     General government                            1,035         1,089        1,137         1,153         1,271         1,361
     Public safety                                 1,315         1,445        1,552         1,651         1,827         1,981
     Physical environment                                68           73            73           79            85             90
     Transportation                                  205          212           229           234           247          268
     Economic environment                                49           50            53           59            64             69
     Human services                                      49           50            55           57            65             64
     Culture and recreation                          428          434           450           520           546          562
   Business-type activities:
     Airport                                         257          261           269           282           319          342
     Water and wastewater                                33       179           196           256           279          290
     Transit                                         166          163           166           169           239          254
     Transportation facilities                       135          130           125           132           132          124
     Solid waste                                         20           21            30           36            55             71

       Total                                       3,760         4,107        4,335         4,628         5,129         5,476



 Sources: Lee County Budget Office, Lee County Sheriff Finance Department, Lee County Clerk of Circuit Court Human Resource
 Department, Lee County Property Appraiser Finance Department, Lee County Tax Collector Human Resource Department, Lee
 County Supervisor of Elections Human Resource Department, Lee County Port Authority Human Resource Department, and 20th
 Judicial Circuit Court Finance Department




                                                                                                                       159
       Lee County, Florida
                                                              Lee County, Florida
                                                                SCHEDULE 14
                                                OPERATING INDICATORS BY FUNCTION/PROGRAM
                                                              Last Six Fiscal Years


                                                                         2001          2002          2003          2004            2005         2006
 Function/program

 Community Development
  Building Permits Issued                                                  50,000        55,000        61,000        92,000         122,000      119,000
  Inspections                                                             124,000       150,000       200,000       237,500         290,000      360,600
                       1
 Public Safety/EMS
  E-911 calls processed                                                  112,512       115,287       123,864        143,160        147,730       155,450

 Sheriff Department 2
  Physical arrests                                                        11,857         13,645        14,597        15,233         15,007        17,856
  Traffic tickets                                                         28,439         38,056        37,529        40,718         44,158        64,272

 Natural Resources
  Environmental lab tests performed                                       74,337         76,657        77,327        88,449         96,049       106,670
  Pollutant storage tanks inspections                                        696            727           780           858            860           673

 Solid Waste
     Number of business and residential customers 3                      176,424       183,335       191,041        196,889        216,804       225,711
                                                          4
     Volume of solid waste collection (tons per year)                    430,665       444,147       486,486        533,754        581,000       605,747
                                                      5
     Volume of recycling collection (tons per year)                       32,625        35,655        39,853         44,209         46,802        51,651
     Megawatt hours of electricity sold                                  239,407       215,468       231,296        229,479        236,533       218,399

 Water and Wastewater
  Water customers                                                         52,914         55,151        68,243        71,241         73,670        77,149
  Wastewater customers                                                    34,928         39,408        46,528        48,830         51,774        55,668
  Meter installations                                                      1,618          1,627         2,149         3,531          3,754         3,493

 Department of Transportation
  Number of signal and flasher locations maintained                           392           410           419           425              433          453
  Number of streetlights maintained                                         1,846         1,632         2,052         2,138            2,138        2,194
  Number of Driveway and ROW permits issued                                 1,811         2,369         2,761         4,128            6,435        7,601
  Asphalt road resurfacing (in tons)                                         26.7          58.8          57.9          60.6             83.1         54.2

 Bridges
  Toll paying traffic per year
   Sanibel                                                             3,456,438      3,406,557     3,249,378     3,192,595       2,910,454     2,835,333
   Mid-point Memorial                                                 13,700,380     14,880,050    15,795,078    16,578,145      17,958,287    17,981,689
   Cape Coral                                                         14,359,196     14,747,594    15,423,942    16,303,265      17,355,653    17,450,273

 Transit
  Number of bus passenger trips                                         2,318,342     2,240,545     2,335,842     2,512,886       2,821,676     2,891,968
  Number of bus route miles                                                   427           414           418           418             418           418

 Port Authority
  Number of enplanements                                                2,665,387     2,618,297     2,973,330     3,393,275       3,741,071     3,803,563
  Number of deplanements                                                2,612,321     2,567,351     2,918,338     3,343,355       3,678,511     3,749,462

 Human Services
  Number of emergency services provided with General
   Fund County Service dollars (mortgage, rent, utilities, etc.)             803          1,053           874           876             525            602

 Animal Services
  Officer responses                                                       13,005         17,548        23,663        33,025         36,372        40,544
  Animal placement                                                         3,233          3,969         3,827         4,591          4,642         4,566

 Library
  Cardholders                                                             187,213       196,523       209,618       223,376         243,917       257,032
  Items available for circulation                                       1,046,221     1,077,870     1,132,113     1,211,717       1,238,611     1,347,502
  Total circulation                                                     2,814,023     3,164,773     3,628,490     3,618,912       3,171,641     3,484,762

 Parks and Recreation
  Number of public parks maintained                                             58            60            58            59              65           65
  Number of public pools maintained                                              9             9             9             9               9            9
  Number of public boat ramps maintained                                         5             5             5             5               6            7

 Source: Various Lee County Departments
 1
     Based on calendar year.
 2
     Fiscal Year is the year the Sheriff published the statistics for 2001 to 2004. 2005 and 2006 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.

160
                                                                                                                               Lee County, Florida
                                                                   Lee County, Florida
                                                                     SCHEDULE 15
                                                         CAPITAL ASSET STATISTICS BY FUNCTION
                                                                   Last Six Fiscal Years
                                                                         (in units)



                                             2001              2002             2003            2004       2005       2006
Governmental Activities
   General Government                            8,642            10,573          10,510           9,140     10,107     11,010
   Public Safety                                 2,433             2,369           2,727           2,439      2,571      2,714
   Physical Environment                            408               440             463             401        447        433
   Transportation                                2,999             3,142           3,256           3,224      3,237      3,264
   Economic Environment                            142               152             165             134        147        202
   Human Services                                  869               967             967             893        842        885
   Culture and Recreation                        3,439             3,884           4,030           3,668      4,022      4,085
                                                18,932            21,527          22,118          19,899     21,373     22,593

Business-type Activities
   Port Authority                                2,016                2,068        2,162           1,990      2,061      2,147
   Water and Wastewater                          3,998                4,421        5,240           6,429      7,814      9,033
   Transportation Facilities                       729                  778          814             784        881        995
   Solid Waste                                     290                  313          372             354        407        441
   Transit                                         377                  472          456             412        504        541
                                                 7,410                8,052        9,044           9,969     11,667     13,157

 Source: Lee County Clerk of Courts Finance Department




                                                                                                                      161
             Lee County, Florida
      This page is intentionally blank.




162
                                          Lee County, Florida
                      Other Supplemental
                              Information




                                            163
Lee County, Florida
                                              Lee County, Florida
                                         SUPPLEMENTAL SCHEDULES
                        TOURIST DEVELOPMENT TAX REFUNDING REVENUE BONDS, SERIES 2004
                                              September 30, 2006
                                                  (unaudited)
                                             (dollars in thousands)

                                 Historical Tourist Development Tax Revenues and Gross Revenues and
                                                         Debt Service Coverage


Fiscal Year Ended September 30                                 2001        2002          2003      2004        2005      2006

Tourist Development Tax Revenues                               $11,815     $10,834       $11,089   $12,318     $11,603    $18,728

Stadium Rental Revenue (Gross Revenues)                            300             300      300       300          300          300

                          (1)
Total Pledged Funds                                            $12,115     $11,134       $11,389   $12,618     $11,903    $19,028

Maximum Annual Debt Service
Payable from Pledged Funds                                         833             833      833       833          825          825

                                (2)
Debt Service Coverage                                            14.5x        13.4x        13.7x     15.1x       14.4x      23.1x

(1)
      Investment earnings, if any, have not been included in these calculations.
(2)
      The Bond Resolution requires 1.75 times the Maximum Annual Debt Service for the issuance of Additional Bonds.

Source: Lee County Finance Department




 164
                                                                                                             Lee County, Florida
                                                                                     Lee County, Florida
                                                                             SUPPLEMENTAL SCHEDULES
                                                                                 CAPITAL REVENUE BONDS
                                                                                     September 30, 2006
                                                                                        (unaudited)


                                                                   Pledged Revenues and Debt Service Coverage

                                                                                              Historical                                                      Projected
                           Revenues(1)                               2003              2004                 2005               2006           2007               2008           2009

Ambulance Service Receipts                                           $8,340,917      $11,305,812           $13,870,181       $15,428,511     $15,737,081       $16,051,823     $16,372,859
Excess County Officer Fees                                            9,047,561       10,534,940            19,329,909        22,004,668      22,224,715        22,446,962      22,671,431
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)                            800,480          807,059               780,419           828,577         803,092           826,571         850,892
Sales Tax                                                            32,528,178       37,202,092            41,197,944        45,312,441      47,578,063        49,956,966      52,454,815
Investment Earnings                                                   2,243,755        1,501,829             3,441,929         8,511,003       8,681,223         8,854,848       9,031,944
Data Processing Fees                                                  8,980,953        8,717,717            10,031,791         9,527,331       9,813,151        10,107,545      10,410,772

Sub-Total Pledged Revenues                                           $65,344,094      $73,471,699          $92,054,423      $105,014,781    $108,239,575      $111,646,965    $115,194,963

Maximum Annual Debt Service                                          18,129,654       19,642,988            19,642,988        21,776,744      21,776,744        21,776,744      21,776,744

Debt Service Coverage                                                       3.60 x         3.74 x               4.69 x            4.82 x          4.97 x            5.13 x          5.29 x

                                                              Plus Limited Availability Revenues (2)

Building and Zoning Permits and Fees                                 12,437,759       16,359,582            23,328,301        21,457,252      19,805,044        20,201,144      20,605,167
Pledged Gas Taxes
   Constitutional Gas Tax                                             4,961,267        5,245,535             5,601,896         5,693,219       5,846,936         5,998,956       6,148,930
   County (7th cent) Gas Tax                                          2,180,031        2,310,253             2,450,751         2,535,530       2,603,989         2,671,693       2,738,485
   Ninth Cent (Voted ) Gas Tax (Net of Series '93 and '03)            1,654,387        1,970,481             2,297,851         2,362,886       2,426,684         2,489,778       2,552,022

Total Pledged Revenues                                              $86,577,538      $99,357,550       $125,733,222         $137,063,668    $138,922,228      $143,008,536    $147,239,567

Maximum Annual Debt Service                                          18,129,654       19,642,988            19,642,988        21,776,744      21,776,744        21,776,744      21,776,744

Debt Service Coverage                                                       4.78 x          5.06 x                 6.40 x          6.29 x            6.38 x          6.57 x            6.76 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 Finance Department for historical figures; Division of Budget Services for projected figures




                                                                                                                                                                                         165
      Lee County, Florida
                                                                  Lee County, Florida
                                                             SUPPLEMENTAL SCHEDULES
                                                            LOCAL OPTION GAS TAX BONDS
                                                                  September 30, 2006
                                                                      (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
              1997             $6,372           $3,312            1.92               1997           190,380,896            26,653,933        217,034,829
              1998             7,011            3,312             2.12               1998           196,277,167            26,809,598        223,086,765
              1999             7,386            3,312             2.23               1999           210,503,207            28,670,595        239,173,802
              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

      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)
                                1997            $4,653           N/A                 1997          $190,380,896               N/A
                                1998            5,230            12.4%               1998           196,277,167               3.1%
                                1999            5,474             4.7%               1999           210,503,207               7.2%
                                2000            5,574             1.8%               2000           221,552,425               5.2%
                                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%


          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                           23.80%
              Fiscal          Gas Tax        Annual Debt       Coverage                           City of Fort Myers                           14.00%
              Year1           Revenues          Service          Ratio                            Sanibel                                       5.00%
              2003             $5,851           $2,472            2.37                            Town of Ft. Myers Beach                       1.27%
              2004             6,388            2,539             2.52                            City of Bonita Springs                        5.05%
              2005             6,731            2,539             2.65                            Lee County                                   50.88%
              2006             6,978            2,539             2.75
                                                                                                                                              100.00%
      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 Finance Department and Lee County Budget Services




166
                                                                                                                                         Lee County, Florida
                                                                  Lee County, Florida
                                                       SUPPLEMENTAL SCHEDULES
                                              LEE COUNTY WATER AND WASTEWATER SYSTEMS
                                                                  September 30, 2006
                                                                     (Unaudited)


       Monthly Water Rates
       Customer Classification
                                                                                                             User
                                                                                                             Charge
                                                Monthly                                                      Per 1,000 Gallons
       Residential Service                      Service Charge                                               For Each ERU

       Single – family                          $6.20 per unit                                                 1 - 6,000      $2.26
                                                                                                          6,001 - 12,000       2.78
                                                                                                         12,001 - 18,000       3.30
                                                                                                      18,001 and above         4.33

       Multi – family                           $4.95 per unit/lot                                             1 - 6,000      $2.26
                                                                                                          6,001 - 12,000       2.78
                                                                                                         12,001 - 18,000       3.30
                                                                                                      18,001 and above         4.33

       Recreational vehicle                     $2.50 per unit/lot                                             1 - 6,000      $2.26
                                                                                                          6,001 - 12,000       2.78
                                                                                                         12,001 - 18,000       3.30
                                                                                                      18,001 and above         4.33

       Each residential service account will be charged a monthly administrative fee of $2.25.

       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
                                                                              ERU
              Meter Size                                                      Ratio

                 5/8"                            $         8.45                  1.0                           1 - 6,000      $2.26
                 3/4"                                     11.55                  1.5                      6,001 - 12,000       2.78
                   1"                                     17.55                  2.5                     12,001 - 18,000       3.30
                 1½"                                      33.25                  5.0                  18,001 and above         4.33
                   2"                                     51.85                  8.0
                   3"                                    101.45                 16.0               Non-irrigation class
                   4"                                    157.25                 25.0                         Per 1,000        $2.26
                   6"                                    312.25                 50.0
                  8"                                     498.25                 80.0                     Irrigation class
                  10"                                    901.25                145.0                             1 - 6,000    $2.78
                                                                                                           6,001 - 12,000      3.30
                                                                                                        12,001 and over        4.33

       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.



                                                                                                                                      167
Lee County, Florida
                                                             Lee County, Florida
                                                   SUPPLEMENTAL SCHEDULES
                                          LEE COUNTY WATER AND WASTEWATER SYSTEMS
                                                       September 30, 2006
                                                          (Unaudited)


      Monthly Wastewater Rates
      Customer Classification
                                                                           User
                                              Monthly                      Charge                               Unmetered
      Residential Service                     Service Charge               Per 1,000 Gallons                    User Charge

      Single – family                         $10.10 per unit              $   3.69                             $16.61 per unit
      Multi – family                          $ 8.10 per unit/lot          $   3.69                             $13.29 per unit/lot
      Recreational vehicle                    $ 4.10 per unit/lot          $   3.69                             $ 6.65 per unit/lot

      Each residential service account shall be charged a monthly administrative fee of $3.25.

      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"                           $        13.35              $   3.69
                3/4"                                    18.45                  3.69
                 1"                                     28.55                  3.69
                1½"                                     54.25                  3.69
                 2"                                     84.25                  3.69
                 3"                                    165.00                  3.69
                 4"                                    255.50                  3.69
                 6"                                    509.75                  3.69
                 8"                                    813.50                  3.69
                 10"                                 1,470.30                  3.69

      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                       $    1,140.00                $    1,735.00
      Multi – family (per Dwelling Unit)                            0.80                              912.00                     1,388.00
      Recreational vehicle (per Dwelling Unit/Lot)                  0.40                              456.00                       694.00

      Commercial and All Non-Residential
      Charge Per Gallon                                                                        $         4.56               $         6.94


      Water Meter Installation and Service Connection Fees

                                              Installation                                     Tap-In
             Meter Size                       Charge                                           Charge

               5/8"                            $      125.00                                   $      470.00
               3/4"                                   145.00                                          490.00
                 1"                                   195.00                                          560.00
                1½"                                   410.00                                          825.00
                 2"                                   560.00                                          990.00
           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 within ten
      days upon receipt of such bill.


168
                                                                                                                          Lee County, Florida
                                                        Lee County, Florida
                                            SUPPLEMENTAL SCHEDULES
                                 LEE COUNTY WATER AND WASTEWATER SYSTEM
                                             September 30, 2006
                                                (Unaudited)

                         Historical Revenues, Expenses, and Debt Service Coverage
                                                       (dollars in thousands)

                                                              2003                  2004                 2005               2006

Water and wastewater sales revenues                           $51,819               $61,175              $65,434            $69,439
Other operating revenue(1)                                         820                1,698                1,232              1,215
Total operating revenues                                        52,639               62,873               66,666             70,654

Operating expenses(2)                                           27,545               34,230               42,108             50,699
Net operating revenue                                           25,094               28,643               24,558             19,955

Interest income(3)                                               1,534                 1,164                2,535              4,239
Special assessments(4)                                             925                  729                  769                778
Net available revenues                                          27,553               30,536               27,862             24,972

Net available revenues after other transfers                    27,553               30,536               27,862             24,972

Connection fee revenues(5)                                      10,474               17,932               24,462             22,519

Net revenues and connection fees                                38,027               48,468               52,324             47,491

Senior lien debt service                                        11,268               13,463               14,177             14,148

Senior lien debt service coverage:
 Without pledged connection fees                                   2.45                 2.27                 1.97                1.77
 With pledged connection fees                                      3.37                 3.60                 3.69                3.36

Other debt service requirements(6)                               1,419                 2,075                  721                721

Net available revenues and other
 funds received for capital
 improvements and other purposes(7)                           $14,866               $14,998              $12,964            $10,103
_____________________
(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.
(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 and certain general obligation bonded indebtedness.
(7) Amount shown does not include Connection Fees and associated interest earnings.




                                                                                                                                    169
Lee County, Florida
                                                    Lee County, Florida
                                            SUPPLEMENTAL SCHEDULES
                                   LEE COUNTY WATER AND WASTEWATER SYSTEM
                                               September 30, 2006
                                                  (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)
          1998                29,600              3,335,178              9.14                2,811,147           7,914
          1999                36,520              4,421,481             12.11                3,437,072           7,843
          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           9,038
          2006                73,492              9,603,709             26.31                7,975,812           9,044
     Average Annual
        Historical             12.38%              14.96%                                    14.68%
      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 Statistics1

       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)
          1998                24,597              2,433,589            2,941,163               8.06
          1999                28,448              2,639,722            3,692,237              10.12
          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
     Average Annual
        Historical             9.18%               10.83%
      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).

170
                                                                                                   Lee County, Florida
                                          Lee County, Florida
                                   SUPPLEMENTAL SCHEDULES
                           LEE COUNTY WATER AND WASTEWATER SYSTEM
                                       September 30, 2006
                                          (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    $529,770      0.765%
Shell Point Village                 Commercial       8"         Water/Sewer     290,682      0.420%
Jamaica Bay Assoc. LDT              Multifamily      8"         Water/Sewer     287,471      0.415%
Lee County Port Authority           Commercial       4"         Water/Sewer     211,033      0.305%
Indian Creek Park                   Multifamily      6"         Water/Sewer     210,446      0.304%
Lee Memorial Health System          Commercial       6"         Water/Sewer     204,331      0.295%
Sanibel Harbour Resort              Commercial       6"         Water/Sewer     199,207      0.288%
Corkscrew Woodlands Assoc., Inc.    Multifamily      6"         Water/Sewer     175,216      0.253%
Bayside Estates                     Multifamily      3"         Water/Sewer     172,928      0.250%
Big Pine Way Maint. Org.            Multifamily      4"         Water/Sewer     161,961      0.234%

                                                                              $2,443,045     3.529%




                                                                                                   171
  Lee County, Florida
                                                     Lee County, Florida
                                          SUPPLEMENTAL SCHEDULES
                                         LEE COUNTY SOLID WASTE SYSTEM
                                                September 30, 2006
                                                   (unaudited)

                                      Historic Tipping Fees for Solid Waste System

                    Fiscal Year                  Unincorporated Area (1)                   Incorporated Area
                       1997                              62.43                                   49.61
                       1998                              63.84                                   51.59
                       1999                              64.25                                   52.63
                       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                              58.40                                   51.20

        (1)   Includes Surcharges

         Source: Lee County Solid Waste Division


                               Historic Revenue and Operating Expenses of Lee County
                                             Solid Waste Enterprise Fund
                                                  September 30, 2006
                                                     (unaudited)
                                               (amounts in thousands)

                                                                              Annual
                                          Operating            Net              Debt                             Retained
      Fiscal Year       Revenues          Expenses          Revenues          Services         Coverage          Earnings
         1997            $ 48,685          $ 24,636          $ 24,049         $ 16,246           1.48            $ 68,059
         1998              52,574            26,329            26,245           17,139           1.53              74,835
         1999              52,418            26,640            25,778           18,023           1.43              80,190
         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             67,350             35,659*           31,691           18,759           1.69             163,798
         2006             82,697             44,399            38,298           18,858           2.03             187,842

      *Excludes expense related to hurricane damage which is treated in the financial statements as non-operating expense.

       Source: Lee County Finance Department




172
                                                                                                               Lee County, Florida
                                                         Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                                             LEE COUNTY SOLID WASTE SYSTEM
                                                         September 30, 2006
                                                              (unaudited)

                                                    Historic Solid Waste Tonnage

         The following table provides the historic tons of solid waste delivered to the System for FY 1997
         through FY 2006.

                                                 Lee County Historic Solid Waste
                                                     Delivered to the System
                         Unincorporated Area                         Incorporated Area                       Hendry County (1)

                                            Non-                                       Non-                                      Non-
                    Processible                              Processible                               Processible
 Fiscal Year                            Processible                                Processible                               Processible
                   Solid Waste (2)                          Solid Waste (2)                            Solid Waste
                                       Solid Waste (3)                            Solid Waste (3)                           Solid Waste (3)

     1997 (4)         190,482              25,715               116,747               15,761              27,698                9,233
     1998 (4)         209,840              27,742               128,612               17,003              28,267                9,422
     1999 (4)         202,000              45,700               145,036                6,200              27,570                7,100
     2000 (4)         248,800              50,100               132,800               12,200              32,800                7,300
     2001 (5)         230,300              44,600               173,200                6,300              33,400                8,200
     2002 (5)         250,100              19,800               175,200                2,800              34,100                7,500
  2003 (4)(5)(6)      282,786               4,135               204,776                                   32,949                9,292
  2004 (4)(5)(6)      315,276               8,805               228,303                                   34,227                8,127
 2005(4)(5)(6)        294,152               9,081               232,140                                   40,706                9,404
 2006(4)(5)(6)        302,615              14,284               252,006                                   46,942                16,551

         (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 which is landfilled. Includes construction and demolition
         debris and bulky waste. It does not include non-processibles that are recovered/recycled and does not include ash
         residue. The Hendry County non-processible waste estimate does include horticultural waste that is recycled. The
         horticultural waste is estimated to be approximately 35% of the non-processible waste delivered to the system from
         Hendry County.
         (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.
         (6) The County only accepts a nominal amount of Lee County Unincorporated Non-Processible Waste at the Regional
         Landfill.

         Source: Lee County Solid Waste Division




                                                                                                                                         173
Lee County, Florida
                                                                 Lee County, Florida
                                                 SUPPLEMENTAL SCHEDULES
                                                LEE COUNTY SOLID WASTE SYSTEM
                                                                September 30, 2006
                                                                        (unaudited)
                                  HISTORICAL REVENUES AND EXPENSES
                                           Lee County, Florida
                                           Solid Waste System
      System Income ($)                                                                               Fiscal Year 2005    Fiscal Year 2006
      1. WTE Facility Energy Revenues.................................................               9,407,060                   10,516,350
      2. WTE Facility Ferrous/Non-Ferrous Revenues....……………                                            542,451                      321,548
      3. Hendry County Disposal Revenues........................................                       718,492                    1,042,085
      4. Disposal Facility Assessment ..................................................             8,246,859                    7,322,761
      5. Interest Income...........................................................................  2,634,938                    4,300,076
      6. Reserve Fund Earnings.............................................................            347,286                      735,913
      7. Franchise Fees............................................................................    906,614                    1,463,345
      8. Solid Waste Program Revenues...............................................                41,266,271                   54,056,303
      9. Rate Stabilization Reserve Fund..............................................                       0                             0
      10. Resource Recovery Tip Fees Revenues................................. included in line 8                         included in line 8
      11. Landfill Tip Fee Revenues...................................................... included in line 8              included in line 8
      12. MSTU Tax Fund.......................................................................       1,801,410                    1,783,352
      13. Other Revenue..........................................................................    3,834,634                    3,975,401
      14. TOTAL SYSTEM INCOME......................................................                 69,706,015                   85,517,134
      15. Non-applied Income................................................................         2,355,574                    2,819,839
      16. NET SYSTEM INCOME...........................................................              67,350,441                   82,697,295

      System Expenses ($)
      Landfill Operation Costs
      17. Landfill Operating Costs.......................................………….                                2,412,666           3,236,549
      18. Landfill Closure Operating Costs………………………….                                                         2,160,021           2,929,775
      WTE Facility Operation Costs
      19.    Operation and Maintenance Charge...................................                             10,307,764          10,384,504
      20.    Energy Credit.........................................................................             931,586           1,013,679
      21.    Ferrous/Non-Ferrous Credit................................................                         271,225             321,548
      22.    Pass Through Costs...............................................................                2,138,096           2,396,305
      23.    County Operations ...............................................................                6,054,334           5,809,340
      24.    Regulation Service Charge....................................................                       91,200              91,200
      Solid Waste Program Costs
      25. Solid Waste Program Costs...................................................                       20,437,967          28,293,294
      26. TOTAL SYSTEM EXPENSES...................................................                           44,804,859          54,476,194
      27. Non-applied Expenses...........................................................                     9,146,103          10,076,718
      28. NET SYSTEM EXPENSES........................................................                        35,658,756          44,399,476

      System Annual Debt Service ($)
      29. Series 2001 Refunded 1991 Bonds ......................................                             16,998,524          16,990,756
      30. Series 1995 Bonds...................................................................…               1,760,431           1,867,688
      31. TOTAL ANNUAL DEBT SERVICE........................................                                  18,758,955          18,858,444

      32. NET REVENUES APPLIED TO D.S. .....................................                                 31,691,685          38,297,819

      33. DEBT SERVICE COVERAGE..................................................                                 169%                203%




174
                                                                                                                               Lee County, Florida
                                       Lee County, Florida
                              SUPPLEMENTAL SCHEDULES
                             LEE COUNTY SOLID WASTE SYSTEM
                                    September 30, 2006
                                        (unaudited)

                                   NOTES TO HISTORICAL
                                REVENUES AND EXPENSES FOR
                                    FISCAL YEAR 2006

    1.     Electrical revenues from the Seminole Electric Cooperative Power Purchase
           Agreement.

    2.     The WTE Facility Ferrous/Non-Ferrous Revenue as per the Covanta Energy
           Agreement.

    3.     The Hendry County Disposal Revenues in accordance with the terms and
           conditions stipulated in the Hendry County Disposal Agreement.

    4.     The Disposal Facilities Assessment based on the FY06 assessment fee of $16.00
           per ton.

    5.     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 FY06.

    6.     Reserve Fund Earnings are equal to the sum of the interest earnings on the debt
           service reserve funds of the Series 1995 Bonds, Series 2001 Bonds and Series
           2006A&B Bonds for FY06.

    7.     Franchise Fees calculated at 5.5 percent as per Collection Hauler collection
           agreements.

    8.     The Solid Waste Program Revenues are equal to the sum of the Solid Waste
           Operations, Solid Waste Management, Right-of-Way Cleanup, Hazardous Waste
           and Recycling. Surcharges plus the Solid Waste Collection and Billing revenues,
           and Horticulture Waste Tip Fee revenues.

    9.     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
           2006 were $14.5 million as provided by the Lee County Clerk of Courts Finance
           Department. Currently Rate Stabilization is held in reserve and not applied to
           revenues.




                                                                                                175
Lee County, Florida
                                      Lee County, Florida
                             SUPPLEMENTAL SCHEDULES
                            LEE COUNTY SOLID WASTE SYSTEM
                                     September 30, 2006
                                         (unaudited)

  Notes to Historical Revenues and Expenses (continued):


  10.    The Resource Recovery Tip Fees for FY06 are based on the following per ton
         fees:
         MSW - $49.59, Commercial Horticulture- $27.25, Cities Residential Horticulture -
         $19.00, Tires - $110.00, Extra Large Tires - $145.00.

  11.    Landfill Tips Fees based on a $49.59 per ton tip fee.

  12.    The MSTU Tax Fund Revenue from the City of Cape Coral.

  13.    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 advertising revenue and delinquent
         accounts.

  14.    The Total System Income is the sum of Lines 1 through 13.

  15.    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 ($1,457,768),
         Construction Fund Interest Income ($1,203,607) and Upper Captiva Hurricane-
         related Revenues ($158,464).

  16.    Net System Income is equal to the Total System Income (Line 14) les-s the Non-
         applied Income (Line 15).

  17.    Landfill Operating Costs are equal to the total landfill operating costs including
         the agreement for operation of the landfill with Waste Management, Inc.

  18.    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 $37,174 for FY 2006.




176
                                                                               Lee County, Florida
                                       Lee County, Florida
                               SUPPLEMENTAL SCHEDULES
                              LEE COUNTY SOLID WASTE SYSTEM
                                       September 30, 2006
                                           (unaudited)

     Notes to Historical Revenues and Expenses (continued):


     19.    The Operation and Maintenance Charge (O&M) is based on the Initial Operation
            and Maintenance Charge of $5,631,496 plus $9.245 for every ton exceeding
            279,225 tons up to a Maximum Guaranteed Tonnage of 372,300 or $6,491,974,
            plus $10.00 for every ton exceeding 372,300 tons, all adjusted from August 1990
            in accordance with the provisions of the Service Agreement with Covanta Energy
            (formerly Odgen Martin, Inc.). In FY 2006 the O&M charge was $10,298,042 for
            the first 372,300 tons, and $15.86 for every ton exceeding 372,300 tons.

     20.    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 Regulation
            Service Charge (Line 24).

     21.    Ferrous/Non-Ferrous Credit is equal to 50 percent of the total Ferrous Revenues
            received and 50 percent of the net Non-Ferrous Revenue (Line 2) after repayment
            of the capital investment of the non-ferrous recovery system.

     22.    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.

     23.    County Operations include expenses related to disposal administration costs,
            horticultural processing, Waste-to-energy transfer station, ash hauling, and
            disposal expenses.

     24.    The Regulation Service Charge for FY06 is $91,200 based on the Seminole Electric
            Cooperative Power Purchase Agreement.

     25.    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, and Billing.

     26.    The Total System Expenses equal the sum of Lines 17 through 25.

     27.    Non-applied Expenses are equal to the sum of the Landfill Closure Operating
            Costs (Line 18) and Depreciation. These expenses are not Operating Expenses as
            defined in the Indenture and are, therefore, not applied in determining debt
            service coverage.




                                                                                               177
Lee County, Florida
                                            Lee County, Florida
                                    SUPPLEMENTAL SCHEDULES
                                   LEE COUNTY SOLID WASTE SYSTEM
                                            September 30, 2006
                                               (unaudited)

  Notes to Historical Revenues and Expenses (continued):


  28.      Net System Expenses are equal to the Total System Expenses (Line 26) less the
           Non-applied Expenses (Line 27).

  29.      The Series 2001 Refunding 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.

  30.      Series 1995 Bonds are the annual debt service payments for the Series 1995
           Revenue Bonds as provided by the Lee County Clerk of Courts Finance
           Department.

  31.      Total Annual Debt Service equals the sum of the Series 2001 Bonds (Line 29) and
           the Series 1995 Bonds (Line 30).

  32.      Net Revenues Applied to D.S. (Debt Service) is equal to the Net System Income
           (Line 16) less the Net System Expenses (Line 28).

  33.      The Debt Service Coverage is equal to the Net System Revenues Applied to D.S.
           (Line 32), divided by the Total Annual Debt Service (Line 31).




  Source: Lee County Solid Waste Division




178
                                                                               Lee County, Florida
                                          Lee County, Florida
                                      SUPPLEMENTAL SCHEDULES
                                LEE COUNTY TRANSPORTATION FACILITIES
                                           September 30, 2006
                                              (Unaudited)

    Toll Revenue - Sanibel Bridge
    The schedule below reflects the toll structure(1):

     Vehicle Class                                                                  September 30, 2006

          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                  300.00                   -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: August 2005 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.




                                                                                                             179
Lee County, Florida
                                            Lee County, Florida
                                        SUPPLEMENTAL SCHEDULES
                                  LEE COUNTY TRANSPORTATION FACILITIES
                                             September 30, 2006
                                                (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      $ .50 for Cape Coral or
                                                                         Midpoint;$2.00 for Sanibel
                               Second Vehicle                 53.50      $ .50 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      $ .50 for Cape Coral or
                                                                         Midpoint;$2.00 for Sanibel
                               Second Vehicle                 37.00      $ .50 for Cape Coral or
                                                                         Midpoint;$2.00 for Sanibel

                               Initial Vehicle               500.00                   -0-
                               Second Vehicle                250.00                   -0-

      Source: August 2005 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(1):

      Vehicle Class                                                                         September 30, 2006

            Motorcycles                                                                            $0.50
            2 axles                                                                                 1.00
            3 axles                                                                                 2.00
            4 axles                                                                                 3.00
            5 axles                                                                                 4.00
            6 or more axles, per axle                                                               1.00
            Commuter Discounts                                                                   (See below)




180
                                                                                            Lee County, Florida
                                        Lee County, Florida
                                    SUPPLEMENTAL SCHEDULES
                              LEE COUNTY TRANSPORTATION FACILITIES
                                         September 30, 2006
                                            (Unaudited)

    The Cape Coral Bridge and Midpoint 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) a fifty cent ($.50) toll for each 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                  $    0.50
                              Second Vehicle                         20.00                       0.50

                              Initial Vehicle                       330.00                        -0-
                              Second Vehicle                        165.00                        -0-

    Semiannual(2)             Initial Vehicle                        24.00                       0.50
                              Second Vehicle                         12.00                       0.50

                              Initial Vehicle                       200.00                        -0-
                              Second Vehicle                        100.00                        -0-

    Source: August 2005 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 one - way 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                                $0.50                                      $0.25
    2 axles                                     1.00                                    0.50/0.25
    3 axles                                     2.00                                       1.00
    4 axles                                     3.00                                       1.5
    5 axles                                     4.00                                       2.00
    6 or more axles                        1.00 per axle                              0.50 per axle




                                                                                                                  181
Lee County, Florida
                                                                       Lee County, Florida
                                                                   SUPPLEMENTAL SCHEDULES
                                                         LEE COUNTY TRANSPORTATION FACILITIES
                                                                            September 30, 2006
                                                                               (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)
      1998            9,164,191              77,611            9,241,802                           $8,094             $1,263                       $6,831
      1999            11,468,036             96,573            11,564,609        25.13%             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


      Source: URS Corporation - New York, Traffic Engineers to the County and the Lee County Department of Transportation
             (1) Includes motorcycles and 3+ axle vehicles.
             (2) Does not include depreciation.


                                                         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)
      1997           16,589,427             139,224           16,728,651                           $14,265            $1,849          (3)          $12,416
      1998 (4)       12,573,124             98,412            12,671,536        -24.25%            10,300             1,469                         8,831
      1999           12,977,169             96,925            13,074,094         3.18%             10,730             1,767                         8,963
      2000           13,440,431             95,631            13,536,062         3.53%             10,934             1,922                         9,014
      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


      Source: URS Corporation - New York, Traffic Engineers to the County and the 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) Reduction coincides with opening of Midpoint Memorial Bridge.


                                                         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)
      1997            3,256,442             32,290             3,288,732                           $6,022             $1,282                       $4,740
      1998            3,265,956             33,565             3,299,521         0.33%              6,083             1,286                         4,797
      1999            3,346,640             33,365             3,380,005         2.44%              6,317             1,213                         5,103
      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


      Source: URS Corporation - New York, Traffic Engineers to the County and the Lee County Department of Transportation
             (1) Includes motorcycles and 3 to 5-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.
                                                                                            `


182
                                                                                                                                            Lee County, Florida
                                                 Lee County, Florida
                                             SUPPLEMENTAL SCHEDULES
                                  LEE COUNTY TRANSPORTATION FACILITIES
                                                     September 30,2006
                                                         (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
       1997                $21,189                $4,662                 $16,527               $11,993           1.38
       1998                 28,930                 7,914                  21,016                12,010           1.75
       1999                 29,082                 6,405                  22,677                13,070           1.74
       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



     * Debt service amount of $9,407 and coverage ratio of 3.75 were incorrectly stated in 2005 CAFR due to a mathematical error.




                                                                                                                                    183
Lee County, Florida
                                         Lee County, Florida
                                    SUPPLEMENTAL SCHEDULES
                                   LEE COUNTY PORT AUTHORITY
                                         September 30, 2006
                                            (Unaudited)

      The following table lists the airlines serving the Airport, including all airlines operating
      passenger service into the Airport which have entered into an Amended and Restated Airport
      Use Agreement with the Authority (the “Participating Airlines”).

                                      Airlines Serving the Airport(1)

      Domestic Carriers                                      Regionals/Commuters

      AirTran Airways*                                       American Eagle
      American Airlines*                                     Cape Air
      Continental Airlines*                                  Chautuaqua
      Delta Air Lines *                                      Comair
      Frontier Airlines                                      Continental Express
      JetBlue*                                               Pinnacle
      Midwest Airlines
      Northwest Airlines*                                     International Air Carriers
      Shuttle America
      Southwest*                                             Air Canada
      Spirit Airlines*                                       Condor
      Sun Country                                            LTU Int’l Airways
      United Airlines                                        Westjet
      US Airways*
      USA 3000*                                              Air Cargo Carriers
                                                             Airborne Express
                                                             DHL
                                                             Fedex
                                                             United Parcel Service



          (1)     As of September, 2006. During the peak winter months, a number of other domestic
                  and international charter airlines also operate at the Airport.

          *       Denotes Participating Airline as defined in Use Agreements

          Source: Lee County Port Authority




184
                                                                                           Lee County, Florida
                                            Lee County, Florida
                                       SUPPLEMENTAL SCHEDULES
                                      LEE COUNTY PORT AUTHORITY
                                            September 30, 2006
                                               (Unaudited)

                               Airport Enplanements October 2005 - September 2006
                                                                                                          Total
                                                                                                     Enplanements
                   Commercial        Regionals/      International    Domestic           Total        for Month in Percentage
                   Air Carriers      Commuters        Air Carriers    Charters       Enplanements      Prior Year   Change

October 2005             206,943           14,206           5,064             203          226,416         229,069      -1.2%
November 2005            300,304           19,346           7,754             119          327,523         295,892      10.7%
December 2005            300,230           18,645           9,251             115          328,241         311,646       5.3%
January 2006             330,897           22,155          10,232             131          363,415         341,976       6.3%
February 2006            345,292           21,495           8,988             235          376,010         373,513       0.7%
March 2006               463,400           25,555          11,100             118          500,173         505,054      -1.0%
April 2006               421,524           23,345          10,105             344          455,318         442,333       2.9%
May 2006                 279,772           19,695           6,376             607          306,450         315,286      -2.8%
June 2006                233,092           16,547           6,546             258          256,443         258,834      -0.9%
July 2006                228,241           19,062           5,167             117          252,587         256,041      -1.3%
August 2006              206,065           14,749           6,865             369          228,048         228,697      -0.3%
September 2006           168,911            9,302           4,417             309          182,939         182,730       0.1%



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
                       1997              2,044,257       110,099            59,286         22,706        2,236,348
                       1998              2,069,174       139,055            72,261         40,574        2,321,064
                       1999              2,167,791       174,317            65,639         49,214        2,456,961
                       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

                 Compounded Growth
                 1997-2006                  5.48%           7.37%           4.48%          -18.53%           5.45%




                                                                                                                      185
  Lee County, Florida
                 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, 2006                                                                  September 30, 2006
                    (Unaudited)                                                                         (Unaudited)

   HISTORICAL LANDED WEIGHT BY AIRLINE (1000 lbs)                                              HISTORICAL ENPLANEMENTS BY AIRLINE

                                FY 2005                  FY 2006                                                 FY 2005                      FY 2006
                           Landed                   Landed
Airline                    Weight         Share     Weight         Share     Airline                     Enplanements       Share     Enplanements      Share


Delta                      1,101,793        23.3%    604,041         13.0%   Delta                            814,852         21.8%        485,776        12.8%
US Airways                   468,125         9.9%    509,429         11.0%   US Airways                       415,263         11.1%        445,818        11.7%
JetBlue                      370,147         7.8%    450,857          9.7%   JetBlue                          347,339          9.3%        411,969        10.8%
Southwest                           -        0.0%    405,142          8.8%   Southwest                             -           0.0%        337,384         8.9%
Northwest                    416,657         8.8%    373,617          8.1%   Continental                      262,282          7.0%        320,350         8.4%
Continental                  301,339         6.4%    351,672          7.6%   Northwest                        341,480          9.1%        309,384         8.1%
AirTran                      227,403         4.8%    271,075          5.9%   AirTran                          203,191          5.4%        263,419         6.9%
USA 3000                     281,606         6.0%    248,389          5.4%   American                         197,014          5.3%        228,692         6.0%
Cargo                        193,556         4.1%    246,879          5.3%   USA 3000                         251,676          6.7%        217,581         5.7%
American                     233,488         4.9%    245,893          5.3%   Spirit Airlines                  259,815          7.0%        202,217         5.3%
Spirit Airlines              298,051         6.3%    235,044          5.1%   Comair                            41,821          1.1%        105,857         2.8%
International Airlines       136,821         2.9%    152,512          3.3%   International Airlines            75,913          2.0%         91,865         2.4%
Comair                        40,655         0.9%     90,851          2.0%   Am Trans Air                     181,488          4.9%         75,346         2.0%
Am Trans Air                 226,680         4.8%     87,499          1.9%   Sun Country                       42,160          1.1%         57,820         1.5%
Sun Country                   54,085         1.1%     73,601          1.6%   American Eagle                    56,421          1.5%         54,136         1.4%
American Eagle                60,171         1.3%     54,558          1.2%   Midwest Airlines                  27,634          0.7%         39,349         1.0%
Midwest Airlines              32,586         0.7%     45,220          1.0%   United                            67,215          1.8%         36,116         1.0%
United                        78,167         1.7%     42,068          0.9%   Frontier                          35,259          0.9%         30,766         0.8%
Frontier                      45,090         1.0%     34,020          0.7%   Chautauqua                        34,215          0.9%         25,042         0.7%
Chautauqua                    41,136         0.9%     26,081          0.6%   Continental Express               10,910          0.3%         20,319         0.5%
Continental Express           11,008         0.2%     18,148          0.4%   Cape Air                          16,999          0.5%         13,936         0.4%
Shuttle America                1,663         0.0%     17,210          0.4%   Shuttle America                       -           0.0%         13,092         0.4%
Cape Air                      19,170         0.4%     15,822          0.3%   Independence                      48,333          1.3%          9,592         0.3%
Independence                  70,459         1.5%     13,641          0.3%   Pinnacle                              -           0.0%          3,332         0.1%
Domestic Charters             11,976         0.3%      6,228          0.1%   Domestic Charters                  9,791          0.3%          2,925         0.1%
Pinnacle                            -        0.0%      3,901          0.1%   Gulfstream                            -           0.0%          1,480         0.0%
Gulfstream                          -        0.0%      1,948          0.0%



Total                      4,721,832       100.0%   4,625,346       100.0%                                   3,741,071        100%        3,803,563       100%




Source: Lee County Port Authority




           186
                                                                                                                         Lee County, Florida
                                                                             Lee County, Florida
                                                                        SUPPLEMENTAL SCHEDULES
                                                                       LEE COUNTY PORT AUTHORITY
                                                                 SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                                                             September 30, 2006
                                                                                (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 2005                                                                                 Fiscal Year 2006
                                         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    New York (JFK)                                    1,092        529,590       7.14%               1      New York (JFK)                             1,092        610,970    8.09%
  2    Boston                                            1,249        418,066       5.63%               2      Boston                                     1,249        521,000    6.90%
  3    Detroit                                           1,085        386,803       5.21%               3      Detroit                                    1,085        409,430    5.42%
  4    Chicago (O'Hare)                                  1,120        323,877       4.37%               4      Chicago (O'Hare)                           1,120        389,600    5.16%
  5    Minneapolis                                       1,416        273,610       3.69%               5      Minneapolis                                1,416        300,960    3.98%
  6    New York (Newark)                                 1,068        231,960       3.13%               6      New York (Newark)                          1,068        276,630    3.66%
  7    Indianapolis                                        946        229,332       3.09%               7      Indianapolis                                 946        253,220    3.35%
  8    Chicago (Midway)                                  1,105        189,100       2.55%               8      Philadelphia                                 992        234,440    3.10%
  9    Philadelphia                                        992        201,497       2.72%               9      Chicago (Midway)                           1,105        220,170    2.91%
  10   Atlanta                                             515        177,347       2.39%              10      Atlanta                                      515        172,750    2.29%
  11   Cleveland                                         1,025        145,167       1.96%              11      Cleveland                                  1,025        172,140    2.28%
  12   Washington (National)                               892        129,505       1.75%              12      Baltimore                                    966        144,390    1.91%
  13   Atlantic City                                       982        124,812       1.68%              13      Pittsburgh                                   966        142,090    1.88%
  14   Milwaukee                                         1,183        124,272       1.67%              14      Cincinnati                                   879        127,610    1.69%
  15   Hartford                                          1,180        119,874       1.62%              15      Providence                                 1,201        117,420    1.55%
  16   Baltimore                                           966        125,400       1.69%              16      St. Louis                                    979        116,740    1.55%
  17   Pittsburgh                                          966        119,199       1.61%              17      Hartford                                   1,180        115,930    1.53%
  18   Columbus                                            930        113,766       1.53%              18      Milwaukee                                  1,183        114,830    1.52%
  19   Denver                                            1,606         96,012       1.29%              19      Washington (National)                        892        111,280    1.47%
  20   Cincinnati                                          879         94,950       1.28%              20      Columbus                                     930        110,420    1.46%
  21   Providence                                        1,201         93,027       1.25%              21      Atlantic City                                982         97,590    1.29%
  22   St. Louis                                           979         79,223       1.07%              22      Denver                                     1,606         92,240    1.22%
  23   Buffalo                                           1,144         73,563       0.99%              23      Buffalo                                    1,144         79,540    1.05%
  24   Kansas City                                       1,155         67,724       0.91%              24      Dallas/Ft. Worth                           1,017         72,200    0.96%
  25   Dallas/Ft. Worth                                  1,017         67,577       0.91%              25      Las Vegas                                  2,293         69,040    0.91%
  26   Las Vegas                                         2,293         57,411       0.77%              26      Kansas City                                1,155         57,160    0.76%
  27   Dayton                                              932         55,034       0.74%              27      Charlotte                                    617         56,880    0.75%
  28   Charlotte                                           617         55,471       0.75%              28      Rochester                                  1,166         55,540    0.74%
  29   Rochester                                         1,166         55,325       0.75%              29      Houston                                    1,080         50,080    0.66%
  30   Houston                                           1,080         45,269       0.61%              30      Phoenix                                    2,132         37,190    0.49%

       Total- Top 30 Markets                                        4,803,763       64.7%                      Total- Top 30 Markets                               5,329,480       70.6%
       Total - All Other Markets                                    2,615,819       35.3%                      Total - All Other Markets                           2,223,545       29.4%
       Total - All Markets                                          7,419,582      100.0%                      Total - All Markets                                 7,553,025      100.0%




                                                                                                                                                                            187
             Lee County, Florida
                                                    Lee County, Florida
                                               SUPPLEMENTAL SCHEDULES
                                              LEE COUNTY PORT AUTHORITY
                                        SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                                    September 30, 2006
                                                       (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

    1997                 36,520           12,378               848          336        12,836          1,634         1,442        65,994
    1998                 34,568           14,150               972          798        18,948          1,588         1,943        72,967
    1999                 35,142           16,354               870          864        22,011          1,610         1,855        78,706
    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
Compounded
Growth Rate

  1997-2006                5.39%           -3.35%            1.54%        -3.62%         3.35%         3.26%         5.04%         3.16%


              1
                  Also includes activity by miscellaneous air taxis.

Source: Lee County Port Authority




       188
                                                                                                       Lee County, Florida
                                                 Lee County, Florida
                                           SUPPLEMENTAL SCHEDULES
                                          LEE COUNTY PORT AUTHORITY
                                    SOUTHWEST FLORIDA INTERNATIONAL AIRPORT
                                                 September 30, 2006
                                                (dollars in thousands)

                                     HISTORICAL STATEMENT OF NET REVENUES1
                                              FISCAL YEARS 2002-2006

            OPERATING REVENUES:                          2002         2003        2004         2005         2006

            User Fees                                   $11,772      $14,450      $15,780     $26,912       $38,250
            Rentals and Franchise Fees                      891        1,037        1,306       1,508         1,682
            Concessions                                  20,488       22,715       25,109      29,441        35,932
            Interest Revenue                              1,278          906          740       2,433         4,921
            Miscellaneous                                   419          548          249         757         4,400
               Total Operating Revenues                 $34,848      $39,656      $43,184     $61,051       $85,185

            OPERATING EXPENSES:

            Salaries and Wages                          $10,182      $11,159      $12,289     $13,231       $15,098
            Employee Benefits                             3,313        3,588        4,303       4,657         5,827
            Contractual Services,
             Materials and Supplies                        6,382        7,617       7,325        9,416       14,798
            Utilities                                      1,361        1,855       2,030        2,321        4,560
            Repairs and Maintenance                          909          991       1,021        1,055        2,090
            Insurance                                        658          999       1,287        1,695        2,061
            Other                                          1,205        1,914       1,632        1,412        1,906
               Total Operating Expenses                 $24,010      $28,123      $29,887     $33,787       $46,340

            NET REVENUES:                               $10,838      $11,533      $13,297     $27,264       $38,845

            Debt Service Interest                         $2,219      $1,644       $1,518     $13,648       $20,291
            Principal                                      3,740       4,744        4,871       5,410         5,670
            TOTAL DEBT SERVICE:                           $5,959      $6,388       $6,389     $19,058       $25,961

            BOND SERVICE REQUIREMENT
             COVERAGE BEFORE REBATE
             AND DISCRETIONARY FUND
             TRANSFER                                    1.82x       1.81x        2.08x        1.43x        1.50x

           1
             Net Revenues are determined in accordance with the bond resolution as excerpted from the audited
             financial statements. Does not include annual, accrued arbitrage rebate liability paid to the United
             States of America, which arbitrage rebate liability is included as a Current Expense under the Bond
             Resolution, but not under applicable GAAP standards. If such arbitrage rebate liability were included
            as a Current Expense, the Bond Service Requirement Coverage for Fiscal Years 2002-2006 would be
            1.35x, 1.51x, 1.87, 1.42x, and 1.45x respectively. The arbitrage rebate liability was paid from
            investment earnings on amounts deposited in the Project Fund established in connection with the
            issuance of the Series 2000 bonds, which investment earnings are not included as Operating Revenues
            in the table above.

           Source: Lee County Finance Department




                                                                                                                      189
Lee County, Florida
                                    LEE COUNTY PORT AUTHORITY
                                  Southwest Florida International Airport
                            PASSENGER FACILITY CHARGE REVENUE REPORT
                                 For Fiscal Year Ending September 30, 2006
                                                 (unaudited)

                          Eligible
 Total Enplaned                                Net PFC Cash
                         Enplaned                                    Interest Income         Total PFC Revenue
   Passengers                                   Collections
                        Passengers

        3,803,563           3,742,879               $16,084,000                 $743,387             $16,827,387




                                     Southwest Florida International Airport
                                    ESTIMATED DEBT SERVICE COVERAGE
                                    For Fiscal Year Ending September 30, 2006




                                             Actual 2006 PFC
                        Actual PFC                                     Actual debt
                                               debt service
                         Revenues                                     service factor
                                              requirements

                          $16,827,387                $6,791,127                     2.48




Source: Lee County Port Authority




190
                                                                                           Lee County, Florida

				
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